Cash In & Move Out: How to Downsize Debt-Free and Pay Cash for Your Next Home

If you’re ready to simplify life—and your space—it’s worth considering how to move into your next home debt-free. By selling your current home, using the equity to buy your next place mostly (or entirely) with cash, you’re freeing yourself from future mortgage payments. According to the team at Ramsey Solutions, “Buying a home with cash stops the wheel of mortgage interest … you’re trading debt for freedom.” 

Plus, by owning your next home outright, you’ll enjoy:

• No monthly mortgage payment (or very little)
• More flexibility in lifestyle and budgeting
• Stronger buying power when you do purchase

Here’s how to downsize without taking on new debt:

1. Know your current home’s value and subtract any remaining mortgage—what’s left is your equity.
2. Pick your next home target—smaller, lower maintenance, more in line with what you want now (not what you used to need).
3. Sell your current home, unlock the cash, and put it toward your next home purchase.
4. Buy with cash (or minimal financing) so you skip a large loan and monthly payment.
5. Plan for the extras—closing costs, moving, maybe a small renovation—so you don’t tie up every dollar.

By doing this, you're converting your biggest asset (your home) into the next chapter—without adding more debt.

The Big Trend: More Homeowners Are Mortgage-Free
Here’s a quick snapshot of how many U.S. homeowners own their homes outright:

In 2010: ~ 32.8% of homeowners had no mortgage. 
By 2024: ~ 40.3% of homeowners owned their homes free and clear. 

What this means: You’re in good company. The path to owning your home outright is becoming more common—and using equity to move toward that goal is a smart, proven strategy.

How to Make It Happen

Step 1: Review your current mortgage balance + estimated market value → estimate your equity.
Step 2: Choose what “downsizing” looks like for you—smaller home, different location, less upkeep.
Step 3: List your house and time it with your strategy so you’re ready when you sell.
Step 4: Shop your next home with a cash-ready mindset—fewer strings, stronger offers.
Step 5: Close, move, and enjoy a home that fits your life now, not your life back then.

Why Now Is a Strategic Moment

More than 40% of U.S. homeowners own their homes outright—which means your peers are converting equity and making smart moves. As reported by Realtor.com, “Longtime homeowners could be sitting on tens or even hundreds of thousands of dollars in home equity that they can unlock by selling.” If you’re ready for less space, less maintenance, and more freedom, using your equity today gives you a head start on making that happen.

Ready to Make the Move?

If you’re in Maryland or the surrounding region and want help selling your current home, unlocking your equity, and buying your next home with cash or minimal financing, The Vince Caropreso Team can guide you every step of the way. Reach out today—we’ll help you map out a plan that fits your lifestyle, your goals, and your financial freedom.