Moving into a smaller space can make a lot of sense. Usually, you’ll save money, experience less stress in your life and reduce your carbon footprint by downsizing. It can also signal a new chapter in your life. But downsizing isn’t without its downsides. For starters, it’s a lot of work to move. Not to mention, downsizing doesn’t always save you as much money as you think it will. <br> <br>We’ve compiled a list of pros and cons to help you decide if downsizing into a smaller space is the right move for you. <br> <br>Pros of downsizing <br>Most people who downsize do so to save money, but it’s far from the only reason to consider moving into a smaller space. Here are some obvious—and not so obvious—benefits of downsizing. <br> <br>No mortgage <br>Smaller homes theoretically cost less than larger ones. So, if you have a good amount of equity in your current home, you may walk away with enough money from its sale to pay cash in full for a smaller home. Paying in full gives you a couple of advantages, both short term and long term. First, you’ll have lower closing costs since you won’t need a mortgage, which comes with origination and lender fees. Additionally, you’ll close faster without a mortgage, and you won’t have to deal with all the paperwork that comes with it. Plus, once you’re in your new home, you won’t have a monthly mortgage payment.

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