The idea of “rightsizing” is all about aligning your home with your lifestyle. You could be looking to upgrade to a larger one or opt for something smaller. Maybe it has less to do with changing home size and more about a change of scenery; you might be interested in moving closer to the city or away where there’s more space.

With mortgage interest rates holding higher than what some buyers may have experienced in previous home purchases, many are understandably hesitant to make a move in the current market. However, rightsizing your home might be more attainable than you think. With the proper planning, you may be able to leverage the equity in your current home to take the next step in your homeownership journey.

What Is “Rightsizing”?

“Rightsizing” refers to finding a home that better matches your lifestyle, financial circumstances, and future goals. For some, this might mean upgrading to a larger home to fit a growing family, or creating new spaces like a home office or guest bedroom. For others, it could mean downsizing to a more manageable home for empty-nesters or retirees as children leave for college or retirement approaches.

Whether you envision a bigger kitchen, a change in the number of bedrooms, or less maintenance, rightsizing is about striking a personal balance and creating the space that best suits your needs.

Understanding the Current Housing Market

Sellers often wait until the spring to list their homes, offering new options for buyers. This positions the spring season as the perfect time to consider buying a new home as inventory tends to be higher with more homes available to potentially match your criteria.

While market drivers like interest rates, home prices, and inventory can fluctuate, you can still achieve your rightsizing goals even if it’s not a perfect buyer’s market. Our loan experts can help you compare options to give you more flexibility, such as:

• Adjustable-rate mortgages (ARM):¹ This is a loan with an interest rate that changes over time. This kind of loan sometimes includes an initial period during which the interest rate is fixed, usually for 3, 5, 7, or 10 years.
• Construction-to-permanent:² This is a loan that allows you to finance a new-construction home, which then converts to a traditional mortgage—all in one loan.
• Lower monthly payments: Other options could be available to buyers to help lower monthly mortgage payments, including putting a larger down payment.

Home Equity as a Powerful Purchasing Tool

Home equity is the difference between the amount owed on a home and its market value. Equity builds as a mortgage is paid down and may grow if local home values increase. This value can be borrowed against over time in the form of a home equity loan, a home equity line of credit, or a cash-out refinance. In the past few years, home values have generally increased, which means many homeowners could be sitting on significant home equity without even realizing it.

According to federal data from Q3 2024, U.S. homeowners hold nearly $35 trillion in home equity, which has more than quadrupled since early 2012. An astounding $14 trillion of that was earned just since the onset of the COVID-19 pandemic in 2020.³

How to Leverage Your Home Equity

• Put more money down. The more equity you own in your home, the more of the sale price you keep once sold. This could allow you to put a larger down payment on a new home purchase. In some cases, this can even help you qualify for a better loan rate.
• Lower your monthly payments. A larger down payment on a new home purchase or securing a better rate could help reduce your monthly mortgage payments.
• Secure renovation financing. If you’re looking to expand or renovate your home instead of making a new purchase, your home equity can also be used to secure a renovation loan.

Should You Purchase or Renovate?

Some homeowners looking to rightsize are more interested in renovating than moving. This could be especially true for those who love their location, are attached to their current homes, or simply don’t want to deal with moving. But before you decide, it’s important to consider each option.

Advantages of Renovating

• Stay in your current location. If you’re attached to your neighborhood or community, this allows you to make updates to your living situation without having to move.
• Create a custom home. Make home improvements that are uniquely tailored to your preferences, putting more of your own personality into your home.
• Avoid moving. Some might find the process of renovating or building an addition to be less disruptive than moving altogether, as you’re reducing or eliminating the process of packing and relocating.

Advantages of Purchasing

• Find a new location. If you’re looking to change neighborhoods, towns, or even states, a new property might satisfy various personal factors or provide stronger potential for future appreciation.
• Changes in size or maintenance. Finding a new home might be the only way to get exactly the right size or level of maintenance that fits your needs.
• Get a fresh start. Starting out in a new home or location can sometimes bring renewed energy into your life.

Whether your dream home has more or less space than your current one, the idea of rightsizing may be more attainable than you think. By understanding your potential options and resources, you might be able to find the absolute perfect fit—no matter how the market looks.

We May Have the Perfect Loan for You

Wintrust Mortgage offers lending in all 50 states with a wide selection of products—many of which are exclusive to us or hard to find elsewhere—to help buyers find the perfect solutions based on their needs. Many products also include down payment assistance⁴ and other incentives for qualifying homebuyers, including grants and tax credits, to widen a home search to cover as much of the available inventory as possible.

One such option is the Wintrust Mortgage HomeReady® First grant,⁵ which offers up to $6,000 in financial assistance toward a down payment or closing costs to eligible homebuyers with no repayment required. Plus, with no property location restrictions and flexible income and credit qualifications, such a program could be just the thing to open new doors for homebuyers in the current market.

The best way to get started is by becoming a PremierBuyer™.⁶ This offers a better idea of what a buyer can afford and saves time while house hunting. Plus, a PremierBuyer™ is more attractive to sellers by proving you are both serious about a prospective purchase and likely to be able to follow through. Wintrust Mortgage offers an online application to become a PremierBuyer™ that’s fast, easy, and secure.