It doesn’t matter if you are renting a house or an apartment for that matter, the basics never change. Buying property and renting property are not so different after all except for the fact that in the latter, you only get possession temporarily. But the same amount of work and effort goes into renting, since there are vital things to be considered before signing that lease or agreement.
Here are a few tips on how to look for the best, at the best price!
Decide on what to rent: Normally you want to rent a house in the suburbs or you might want to rent an apartment in the city. Take into account all the pros and cons before making up your mind. If you are going for that nice two or three-bedroom house in the suburbs, with a small garden and all the parking you will ever need, factor in how much time it will take for you to get to the city. You will have to commute a lot, not just you but everyone in the family.
However, if you are willing to take the subway or carpool with your office buds to work, taking up an apartment in the city doesn’t sound so bad after all. You won’t have to travel far for all the necessities that might be needed including groceries and provisions, with your favorite restaurant just a couple of blocks away.
This will majorly depend on the occupancy and convenience for that matter. An apartment in the city just might get a bit crowded, if the family is big. If it is just you and your girlfriend or spouse, find a place to stay which is close by to where you work or at least well connected. If you are a family of four with little Jack and Jane wanting to ride their bikes down the street or play with other children in the neighborhood, get a place in the suburbs.
Consider all costs: Renting an apartment or house for that matter is more expensive than you thought it might be in the first place. Consider all the short term and long term costs that you might be incurring, other than the actual rent. Make a list of what all might be needed, in case the apartment or house is unfurnished, take those costs into account. Also make a list of what is not needed, since hoarding unwanted stuff will just add to your problems.
Consider other factors like decorating, whether minor renovations allowed or not, whether pets are allowed or not, are the lease or rent terms beneficial for you first and foremost amongst many other things.
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.