Uncategorized

Most mortgages have a term of 15 or 30 years. However, if you want to buy a more expensive house than you could afford with one of those loan options, you might be able to purchase your dream home with a 40-year mortgage. You could have a hard time finding such a loan, though, and you would pay more over the term of the mortgage.

How Does a 40-Year Mortgage Work?
There are several variations on the 40-year home loan. Lenders may offer one or more versions. Most have a fixed interest rate, but some have an adjustable rate. The interest rate for a 40-year mortgage is often higher than it is for a 30-year loan. Some 40-year mortgages have interest-only payments for the first several years, while others have low monthly payments and a balloon payment due at the end.

Costs and Equity With a 40-Year Mortgage
Since a 40-year mortgage spreads out the cost of a loan over a longer period of time than a traditional mortgage, it has lower monthly payments. That could make a 40-year mortgage a good option if you want to keep your monthly payments as low as possible or if you want to buy a more expensive home.

You will pay more in interest with a 40-year mortgage because it will have a higher interest rate and you will be paying interest over a greater number of months. You can also build equity more slowly with a 40-year loan. If you decide to sell your house before you pay off the mortgage, you might have little equity, even after living there for several years.

Is a 40-Year Mortgage Right for You?
If you are considering a 40-year mortgage because you want to buy an expensive house and you cant afford the monthly payments for a 30-year loan, you may be better off purchasing a less expensive house and taking out a smaller mortgage with a shorter term. If, on the other hand, you want to buy a house in an area where average home prices are high overall, a 40-year mortgage might be a better option.

Be sure to carefully consider the terms of each specific loan. For instance, if you take out a 40-year mortgage with a balloon payment and youre unable to pay the large sum, you could lose your home.

How to Find a 40-Year Mortgage
A qualified mortgage meets standards that the Consumer Financial Protection Bureau has set to make sure that borrowers are only approved for home loans that they can afford to repay. A qualified mortgage may not have a term longer than 30 years.

A 40-year mortgage is an unqualified loan. Many lenders consider unqualified mortgages riskier than qualified mortgages and do not offer them. You may be able to find a 40-year mortgage through a small private lender or a credit union. Before you take out a 40-year mortgage, check the lenders background to ensure it is reputable.

Published with permission from RISMedia.

You likely already know that home maintenance tasks are a vital aspect to keep your home at its best, but some home maintenance goes far beyond simply protecting your largest investment. Fire safety maintenance ensures your safety and the safety of the ones you love. Dont get caught in a dangerous situation that could have been prevented with a few crucial, but easily accomplished, fire-safety tasks for your home.

Check Your Smoke Detectors
This task is a no-brainer. We all hear numerous reminders to check your smoke detectors monthly. Unfortunately, such an easy and infrequent task is often pushed to the wayside in many households. Dont set yourself up for an unsafe situation”set a recurring reminder to check your detectors to ensure your households safety. Dont forget, depending on your model, you may have to change your batteries yearly and replace your smoke alarm entirely every ten years.

Replace Your Fire Extinguishers
Having a fire extinguisher can be a lifesaver in the event of a small house fire. However, owners of fire extinguishers can feel a false sense of security; its not enough to have a fire extinguisher. You must know how to use it properly and be vigilant about replacing your extinguishers once they have reached their expiration date. Dont get caught with a faulty safety tool when you need it the most. Be sure to regularly replace your fire extinguishers upon their expiration.

Clean Your Dryer Vents
Dryer vents can be a hazard. Be certain to regularly clean your dryer vents to prevent flammable lint build up. Some signs that your dryer vent could be clogged include:

Damp clothes after a normal drying cycle.
Large amounts of lint build-up in the lint trap during each cycle.
High lint build-up in the lint trap each time you clean it.
Your clothes come out with a musty or burnt odor after drying.
Clothes seem unusually hot to the touch.

Clean the dryer lint filter before and after each load of laundry and completely clean any and all lint out of the vent pipe every three months. It may be a good idea to regularly hire a professional to inspect and clean your dryer venting, especially if your vents are long. A professional will be able to save you time and do a better job of cleaning those longer vents.

Published with permission from RISMedia.

To build or buy? Here are the pros and cons of both options…

Buying Pros:

You know exactly what youre getting and can inspect the craftsmanship before you purchase it.

Its a faster and more convenient process.

Buying Cons:

Finding a house that has every feature you desire isnt easy. It could mean buying a home that needs updates.

Building Pros:

Every detail is customized just the way you want it, from the architectural style to the kitchen countertops.

Ensure your home is built with the best materials and equip it with state-of-the-art technology.

Building Cons:

Its a time-consuming process with plenty of decisions to be made and additional costs that always seem to pop up along the way.

Published with permission from RISMedia.

If youre looking to rent an apartment, there is a lot to consider. From budget to utilities to location, you will find many choices to suit your needs. But what about a place that’s already furnished? For a first-time renter on a budget, finding a furnished property can be great. For those who already own their own furniture, a furnished apartment may be unnecessary. Whatever your case may be, there are upsides and downsides to renting out a furnished apartment and all the strings attached.

What Does Furnished Really Mean?
Though there are many apartments listed as furnished, this can mean different things. Some units may be outfitted with necessities, such as a bed, dresser, kitchen table or couch. Others may offer more, such as curtains, rugs, lamps and even decor items. If you prefer a furnished apartment, talk to your real estate agent or future landlord about which items will be included when you move in. The sooner you know what is provided, the sooner youll know what you do and do not need to purchase before your big move.

Consider the Costs
Furnished apartments are often more expensive than unfurnished units. This is because the landlord has invested in the items available. If you are looking to save money, compare the cost of a furnished apartment to the cost of an unfurnished apartment, plus any furniture you may need to buy. If you dont already own furniture, especially larger pieces, a furnished unit may be cheaper than if you have to fully furnish an empty space.

Pros of a Furnished Apartment

No need to move heavy furniture or hire a moving company.
Save money with no additional furniture purchases.
Ideal for short-term rentals.

Cons of a Furnished Apartment

No space for furniture you already own.
Additional cost for storage for items that do not fit.
Higher monthly rent.

So, is a furnished apartment right for you? Discuss the pros, cons and costs with your real estate agent to figure out what type of apartment is right for you.

Published with permission from RISMedia.

Published with permission from RISMedia.