Renting a property is just as big an investment, as compared to buying one. There are many important factors to be considered, even if your stay is temporary. Especially when you are moving in with your family, you have to ensure the following.
Area: The most important and first factor to consider is where are you planning to move exactly? Are you renting a nice quiet house in the suburbs where your kids could ride their bikes on the streets peacefully or are you renting an apartment in the city, because it is close by to work. Either way, make sure you can enjoy a good night’s sleep!
Basic amenities: No matter how good or great the neighborhood and your new house is, make sure you do a thorough inspection before agreeing to anything. The house or apartment you are renting out might be a couple of years old, so first impressions are not always the best impression when it comes to property. You have to take your time and ensure everything is just the way you need.
Pet’s or no pets: Check if the said property or apartment for rent is pet friendly or not. Some home owners are very particular about keeping pets in the house. Make sure you don’t move into a place and then realize that your furry fuzzy little friend was not welcome in the first place.
The agreement: Read every clause in the rent agreement which you are about to sign, make sure you understand the terms and condition. If needed, it is advisable to have an expert or attorney check out the draft before making it official. Check the advance money to be paid and ensure both have arrived on a reasonable rent arrangement.
Also if you do not like some of the terms and conditions of the agreement, you can always challenge and question them. The clauses in any agreement should be such that they benefit both parties to the agreement.
House v/s apartment: Renting a house and renting an apartment are two not so different things. In the city, someplace like New York, you will have to settle for an apartment and one which also fits into all the above-mentioned criteria.
Consider all factors like distance from work, shopping and grocery facilities around, good school and education systems and more. Renting requirements will differ for every person, but these are the few basic points which can be kept in mind to ensure you don’t end up in a place you will grow to resent.
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.