Studio apartments will be smaller and a little compact when compared to your regular one bedroom apartments. But on the bright side, there are a number of good reasons to look for a studio apartment over going for your traditional mode of accommodation.
Here are some reason why you should go for that small studio.
Savings on rent: Taking up a one room flat is much more expensive than actually taking up a studio apartment. The rent in many ways is directly proportional to the square footage of your apartment and compared to a one bedroom, studios are much smaller. The savings will be upwards of a couple of hundred dollars while renting out a studio apartment.
Savings on utilities: Studio apartments as mentioned earlier are designed to be very compact for the price. Thus, not only the rent is saved but also you will be saving up a lot on utilities especially, electricity. Since there is less room to light up, you will end up paying a lot less for that electricity bill at the end of the month.
Savings on furnishing: Studio apartments are very less in square footage as compared to your regular one bedroom, hence this makes it a lot easier to furnish. Apart from the bare necessities, you won’t be needing a lot more furniture just to fill the empty space. Savings on furnishing will be a plus point in case of a studio, which can also be planned according to the layout o make the most of every inch of the apartment. It is also very easy to find customized and furnished studio apartments for the right price, by both listings from an owner and through an agent.
Low maintenance: Studio apartments come with a number of plus points. You can save big on rent, you can save on the utilities and even furniture for that matter. But the biggest advantage is you can save on the extra work of maintain your place. The bigger the apartment, the more maintenance is needed. However in the case of studio apartments, maintenance costs and efforts for that matter will be minimized.
There are a number of pros and cons for renting a studio apartment, but the pros seem to outweigh any negative points for that matter since studio apartments are an ideal choice for if you are not looking for much. If you just need some space to store you luggage and sleep at night, studios are the cheapest option to avail plus the privacy and privilege for that matter to having a place of your own.
A reverse mortgage is a type of loan that allows homeowners to receive payments on their house as opposed to them making payments to the lender. At first glance, this option seems too good to be true. But, before committing to it, there are some nitty-gritty details that people must consider when opting for this type of financing. So, here is some information regarding the pros and cons to consider when getting a reverse mortgage.
Advantages
Disadvantages
A reverse mortgage is a loan that allows individuals older than 62 to improve their financial well-being. They can convert part of their home equity into lump sum cash, fixed monthly payments, or line of credit, according to their preference. The money can be used to pay for medical bills, in emergencies, or to pay off a mortgage. Here’s what you should know about reverse mortgages in case you’re looking for one.
How much can you borrow?
For reverse mortgages, the loan amount can’t exceed the value of the property against which it is borrowed. Federal regulations require lenders to ensure that the loan amount doesn’t exceed the value of the house by structuring the transactions accordingly. Additionally, these regulations state that the owner/borrower is not liable to pay off the balance amount in case it exceeds the property value.
How are reverse mortgages paid for?
A reverse mortgage is payable when the borrower sells the house, relocates permanently, or dies. Unlike forward mortgages, reverse mortgages don’t need the borrower to make any monthly payments. They are only liable to pay interest on the money received, which is rolled back into the loan balance. While the owner gets to keep the title to the home, their home equity reduces over the loan tenure.
Who can take a reverse mortgage?
This type of loan is ideal for seniors and retirees whose net worth comes mostly from the value of their home. Seniors who don’t qualify for a home equity loan or can’t refinance due to limited cash flow or poor credit can opt for reverse mortgages. Home Equity Conversion Mortgage (HECM) for purchase is a reverse mortgage that allows seniors to buy another property. That said, it is complex, and you should study the risk factors before getting one.
What are the risks associated with reverse mortgages?
Reverse mortgage scams are not unheard of. Unreputable vendors could offer to help seniors secure reverse mortgages by undertaking house repairs. They don’t provide quality results and get away with the homeowner’s money instead. For spouses living together in a home with only one spouse named as a borrower on a reverse mortgage, the other spouse can lose the home if the borrowing spouse dies first. Besides, reverse mortgage lenders charge fees and closing costs and may also charge mortgage insurance premiums for federally-insured HECMs.