After months of working tirelessly, everybody deserves a vacation. And one of the best money-saving ways to experience a classy holiday is timeshare ownership. For many good reasons, this is one of the most preferred options in the world today. For example, one is offered enjoyable accommodation facilities in the most desirable holiday destinations across the globe. Let’s take a look at some of the benefits of timeshare ownership that you can enjoy.
Plenty of accommodation options
When you’re selecting a timeshare, you can choose from a studio apartment to a huge multi-bedroom unit. Many timeshare units are spacious and offer a fully equipped kitchen, living room, and bedroom. And this is not something you’ll easily get if you compare this to hotels. Moreover, you can get these apartments with amazing amenities like hot tubs, entertainment centers, and fireplaces to make your stay memorable. With many options, you’re more likely to feel at home even when you are at the other end of the country.
Luxury brands at your disposal
One of the greatest benefits of timeshare is that there are big brands and timeshare resorts across the globe. This means you can own a timeshare unit at any place you desire. Some of the top brands that offer timeshare resorts include Marriott, Hyatt, Disney, Club Casa Dorada, Club Intrawest, Westgate, and Wyndham Resorts. Also, when you’re selecting a hotel or resort brand that you love, you don’t need to worry about the quality of your vacation spaces.
Great value and flexibility
Planning even a single vacation in a year can be costly, and last-minute bookings can significantly increase overall expenses. But with timeshare ownership, you don’t need to worry about this since you can book your future vacation at today’s prices. Also, you can rent out your timeshare unit or share it with your friends. There is also the flexibility to decide when and where you want to travel. Since these units belong to a hotel or resort chain, they can swap their units with their hotels at different destinations, and help you explore those places too. But you must know that timeshare owners are required to pay a yearly maintenance fee to enjoy all these benefits.
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.