You have found that beautiful three-bedroom apartment you were looking for, but realize that it is slightly out of your budget. Now you may have lined up a number of potential roommates with whom you can share your rent and for that matter, everything else. But how can you make sure, your next-door roomie will be someone you can live with after that lease or agreement has been signed?
Finding a roommate to split the rent with for a small flat is challenging enough, try finding a couple to occupy those extra two rooms. There are a number of factors which have to be taken into account like the advance deposit to be paid to the owner, your monthly rent after splitting it three ways, utilities and expenses incurred and most importantly, commitment to cosign the lease.
There are times when you take up an apartment in your name and don’t cosign, which will be a potential problem in case your roommate decided to ditch you in the middle of the lease. Cosigning will ensure his commitment and give you a sense of security.
Although you will interview a number of people before you narrow down your choices, make sure you browse through their social media accounts as well just to find out whether this person is really who he claims to be or is just making a false impression to get his hands on that single room. It is quite possibly the best place to find out more about the person and more importantly, the kind of people he tends to hand out with. Better yet, try to find people who come from mutual references like a friend of a friend or someone from college or work.
As mentioned earlier, you will be splitting up rent and allied expenses. But you might also want to divide the chores among the three of you equally. Make a timetable and schedule tasks like cleaning, doing the dishes, laundry and more so that you don’t end up doing all the work. If everyone agrees to it, hire cleaning services.
Make ground rules for people who can visit and stay with you or your roommates for that matter. See to it that your roommates make sure their buddies don’t overstay their welcome for that matter including your girlfriend, best friend, college buddies, office colleagues or others.
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.