Renting an apartment can be quite a tedious and challenging task, not to mention very expensive. Apartments in cities can be rented out, only if you are willing to shell out the big bucks for comfort, convenience and for living in style.
But if you are not to fussy about how the apartment is or can make do without some of the modern amenities that we take granted for, renting an apartment may not be that expensive. Old buildings and flats for that matter may not look much but are cheaper to rent and manage too. Hang on to the bare necessities and try looking for alternatives, so that you can save big on furnishing the place as well. Buying good second hand furniture, renting out furniture online and even buying some from the flea market will help you save some big bucks.
Even old buildings come with some perks like having a gym in the basement, laundry rooms and more. Make the most of these facilities so that you can save unwanted spending outside. You would have rented a washing machine or opted for expensive laundry service outside otherwise. Making use of the perks which many buildings have to offer will help you cut back on those expenses.
If you are willing to commute, taking up a place in the suburbs will definitely help with the rent. City spaces are prime hot property since there is no more space available to expand, which in turn affects the cost. Suburbs are far away from these prime locations, which makes them a cheaper alternative.
Granted, the social life you will have in a city will be different from that of in the suburbs, so if you are the type of person who likes to mingle a lot and have an active social life, moving away from the city is not advisable. But it is an alternative for people who are happy with a couple of host parties and potluck dinners in maybe a month or so and mostly stay in to enjoy a warm cup of tea and read a book.
There are good times to look for a place and then there are times when everyone is out there, apartment hunting. People tend to relocate in the beginning, normally the months from January to march are the most active months which in turn affects market rates. When the demand goes up, price goes up.
It is advisable to start looking for apartments during the quitter months, after everybody has settled in. If you think waiting it out might make you miss that gorgeous park facing apartment with a view of the sunset, worry not. It is advisable to wait for the right moment, since even the flats which would have been expensive during the peak demand months may also be available within your budget.
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.