Dangers of downsizing

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DEAR BENNY: I am 58 years old and married. My total household income is less than $50,000. I have no mortgage; however, I do have a line of credit with $130,000 owed. I have a daughter who is a junior away at college. I want to help pay for student loans once she graduates. Do you think I should put my house up for sale and downsize to maybe a condo or townhouse? My home is probably worth about $250,000 in this market. I am worried that I will never be able to retire. What do you think? --Rod DEAR ROD: I cannot give specific legal or financial advice, but have some general observations. What is the benefit of downsizing? Your house is free and clear, so your only obligation is to pay the yearly insurance premium and the real estate tax. Of course, there is maintenance and upkeep that has to be considered. Let's assume you can get $250,000 when you sell your house. If you use a real estate agent, you will have to pay a commission, which could range from $12,500 to $15,000. ...