I think you made a good decision. A smaller home costs less, requires less time to clean and keep up with repairs…. Once you retire you will have more freedom to take trips… because your monthly expenses will be lower and it will take less time and money to handle the cleaning and upkeep. A big house is not what makes a person happy. Take a breath. You have had a lot of change in your life in a short period of time.  Work on filling this house with love and happiness and I am sure neither of you will regret the change.