Studio apartments are different in many ways, when you compare them with other types of properties. One of the main advantages of taking up a studio apartment is that they are cheap. Thus, looking for a roommate just to save rent is not the first thing that will come to your mind, before moving in.
You would think after living in a one bedroom or with your parents in the suburbs, before graduating school, adjusting into a studio apartment will be a major task. But it is not that difficult as it looks, in fact moving into a studio apartment which suits your needs and for that purpose meets your budget is not such a big transition after all.
Here are some of the reason why you should prefer a studio apartment, over a one bedroom.
Space: Compared to decent one bedroom apartments, studios will have a lot more vertical space which can be a bit confusing at first to adjust to. But you can use most of this space to create shelves and cabinets, utilizing the height instead. Granted there will be limited horizontal space, but it won’t make much of a difference if you can get used to the fact that you might have a larger than normal ceiling limit which actually sound kind of cool.
Downsizing: When you are transitioning from a big space to a studio apartment, you might find it tricky to adjust all the extra stuff. The solution is to pile most of the things into the newly closet space designed to make the most of the ceiling height. This will ensure you don’t make the small studio look cluttered and cramped beyond comfort.
Look for the essentials: Moving into a studio apartment doesn’t necessarily mean that you give up your stove and cooking appliances, just because space is an issue. Look for an apartment which can still fit the essentials like a gas stove, cooking countertops, even a dishwasher for that matter. It all depends on the design of the apartment and the fact that how smartly can you use the space to make most of the layout as is.
All the above points will help you to look for a studio apartment which still feels like a one bedroom. The main point is you should not under any circumstance compromise on the living space, after everything is said and done.
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.