Finding a decent place to live is like winning the lottery nowadays. with so many options available to choose from, and attractive pricing for that matter, finding your dream house can be quite a challenging task.
There are a number of factors to be considered, even before you start weighing the pros and cons. For starters, houses are classified according to type and category for one thing. You can choose to live in a single-family home which may be a one bedroom or a two bedroom, or you can opt for a condominium is you are planning to share the apartment with a couple of your college buds or office colleagues. Townhouse are a rage since they feature both a condo and a single-family home.
Here is a list of pros and cons you can consider to differentiate between the various types of homes.
Single family home: since they are built solely to accommodate one family, you won’t have to compromise on privacy. These homes will have their very own parking, front yard and some even backyards. But the maintenance for this property will be a lot more compared to other residential lots. But this type of a home will give you the freedom to express your won’t living style, without having to compromised on the things which you like.
Condos: Condos can be found in densely populated areas, and generally consist of a number of ingle unit flats in a building or community or homeowner’s association, where the rent is to be paid on a monthly basis. However, condos being a part of the association, the resident has nothing to worry about in terms of maintenance and upkeep. The downside however is the shared accommodation, even if there are walls separating the occupants.
Townhouse: The townhouse is a cross combination between a condo and a single family home, thus featuring both pros and cons. On one hand a townhouse will offer more privacy compared to condos, but they don’t usually feature the shared amenities that condominiums do. In case of a town house, there will be joint maintenance agreements to share upkeep costs and are more affordable than single family homes.
When it comes to weighing in our options to decide on a place to live, you have to take into account one main factor that is how much are you willing to compromise on comfort and privacy so as to afford that place near your work, or are you willing to commute from the suburbs where you will have all the privacy you will ever need. Deciding on this will enable you to then narrow down options according to your budget to look for residential homes available on rent from the owner.
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.