No one told you downsizing could cost more than staying put.
A smaller or cheaper house does not guarantee lower total housing costs.
Your house may be part home, part retirement account and part trap
"Just downsize."
"Move somewhere cheaper."
"Go to a no-tax state."
Retirement housing advice sounds simple until you include the mortgage, taxes, insurance, transaction costs and the price of the replacement home.
No one told you...
No one told you your low mortgage rate may be one of the most valuable things about your current house.
Giving up a 2% or 3% mortgage and replacing it with a much higher rate can change the entire downsizing calculation.
No one told you moving to a no-income-tax state does not automatically make retirement cheaper.
Housing, property tax, homeowners insurance, sales tax and other costs still matter.
No one told you moving before large retirement withdrawals can change your state tax bill.
If your current state taxes retirement income and the new state taxes it less, establishing legal residence before large taxable withdrawals or Roth conversions may change the total tax.