Reverse Mortgage and Traditional Mortgage Differences and Similarities

There are a lot of new choices you face when you retire. One of those choices might be what type of home loan to get. Obviously, you could choose the type of traditional mortgage on your property that you can get at any adult age. However, you could also opt for a reverse mortgage only open to those who are 62 and older. Here are some similarities and differences between the two.

Similarity: They Both Require You to Own Your Home

A mortgage is a loan against the value of a property you own. Both traditional and reverse mortgages require you, as the person signing the contract, to own the property. As a reverse mortgage holder, you are required to use the home as your primary house as well. A vacation property or rental property will not do. The only exception is if you live in one of the units yourself in a multi-unit home with a small number of units.

Difference: A Reverse Mortgage Requires You to Own Your Home for Longer

A big difference between a reverse mortgage and a traditional one is the traditional one has a schedule to which you have to adhere. Usually, you have to pay a bit toward your mortgage each month. In a few years, the total is paid off. A reverse mortgage does not make you make payments back toward the balance while you keep living in the home. However, the freedom you give up is the freedom to move because the agreement lasts for many years.

Difference: A Reverse Mortgage Lets You Borrow in More Ways Than One
A regular mortgage usually lets you take out a set amount of money all at once. A reverse agreement allows you to do that if you want to. However, the unique reverse-loan mortgage parameters allow you to also choose other options, such as setting up a credit line. That lets you take out particular amounts of cash when the need arises. You can also ask for monthly payments of a certain size to be automatically made to you, if you prefer that method.

Similarity: Both Mortgage Types Have Associated Fees

Another similarity between the two mortgage types is there are fees associated with both. In the case of a traditional mortgage, some of those fees are often more obvious and concrete. For example, closing costs are clearly outlined. Also, an interest rate and loan duration are both established when you sign the contract. That means you know exactly how much interest you will pay by the end of the loan.

Since the duration of a reverse mortgage is unpredictable, the total interest you will pay on one is equally unpredictable. The only thing you have control over is choosing the lender that offers the best interest rate. That way you can minimize the amount of interest you will eventually pay as much as possible, even though you cannot know what the total will be.

Similarity: Both Loan Types Come with Home Loss Risks

A common concern of getting a traditional mortgage on a retirement income is that you might be unable to make your mortgage payments. That could lead to eviction. A reverse mortgage does not have that particular risk, but home loss can still occur. For example, if you ever file for bankruptcy, your reverse mortgage is called in. You also have to prove you can pay taxes and care for the property. Additionally, the home can be sold for the lender to get funds back, if you ever move out and do not pay the balance you owe.

Making a Final Comparison and Mortgage Assessment

To make a final comparison and mortgage assessment, you have to do your homework, as you can see. Talking to a reverse mortgage counselor who has no stake in your decision is an ideal option. If he or she is not affiliated with your preferred lender, you will get completely unbiased advice on the subject.

 

5 Reasons Why Charlotte, NC Is Good For Raising a Family

Charlotte is the largest city in the state of North Carolina, with a population of 876,000. In recent years, it has become one of the fastest growing cities in the country, with a hub airport, increasing job opportunities and many community events. That’s why many families considering moving to the state find a wide range of features to love about Charlotte.

1 – A Pleasant Climate

Charlotte, North Carolina has a humid, subtropical climate. This provides the change of seasons that many individuals find pleasant. The climate also allows for a variety of outdoor activities, from swimming and water sports, to ice skating and skiing. The “shoulder” seasons provide good hiking and cycling weather at the many parks and preserves in the area.

2 – A Range of Residential Properties

Charlotte, North Carolina offers a broad range of housing options for new arrivals, including single family homes, townhomes, condominiums and rental properties. New construction has boomed in Charlotte, allowing residents to choose from a range of amenities to suit their needs. You can find housing at a variety of price points. A Charlotte moving company can help you get your family settled into one of these desirable neighborhoods.

 

3 – An Affordable Cost of Living

The cost of living in Charlotte, NC is in line with the rest of the United States. Housing, household goods and services are generally comparable to other areas. Sales taxes are lower than the national average. Food prices tend to be lower than the national average, as are utilities and transportation costs. Healthcare costs are somewhat higher in the Charlotte area, but the quality of care more than makes up for the additional expense.

4 – A Choice of Schools and Universities

The Charlotte area is home to a number of public elementary schools, private elementary schools, colleges and universities. You can explore the academic opportunities at the University of North Carolina Charlotte, Wake Forest University School of Business and Central Piedmont Community College. Specialized training is also available in Charlotte, such as the Art Institute of Charlotte, Carolinas College of Health Sciences and the ITT Technical Institute.

5 – Many Attractions and Amusements For the Family

Charlotte, NC also offers fun and entertainment for families, with art museums, a symphony orchestra, theater and community events. You can also enjoy the Billy Graham Library, Levine Museum of the New South, Hezekiah Alexander Home Site. The U.S. National Whitewater Center offers rafting trips, ziplines, ropes courses, rock climbing and mountain biking. Kids can have fun at the Carowinds Amusement Park or one of the many water parks. A number of nature centers are also located in the Charlotte area. The city also has many shopping and dining venues.

 

As one of the fastest growing cities in the country, Charlotte offers a broad range of amenities with families in mind. When you research the many features the area offers, you begin to understand why the city has experienced such rapid growth and why it has become home for many families from around the U.S.

                                                    

Spring Styles And Finds

I don’t mind admitting that I love the physical act of shopping. Online is also fantastic, as the ranges are usually more extensive, but that physical activity of walking through a shop, seeing all the new season colours and styles, and then trying the item on to avoid the disappointment of getting it home and then it doesn’t fit, they are all things that I love and cherish. And they are things that we may not be able to do for quite some time.

Whilst trying to make some space in my phone gallery today, I came across a lot of photographs that I had taken a few weeks ago, of items that had caught my eye when I had been out and about. I often take pictures of items that I hope to go back to and maybe buy at some point, or as a visual reminder that I can send to the hubby for birthdays, Mother’s Day’s etc.

Here are some things that had taken my eye recently.

TK Maxx

TK Maxx is one of my fave stores, a place to find the cool, the quirky, the sometimes downright weird, and pretty much everything in between. A few of my obsessions are Sex and the City and flamingos, and both of these things have been well served in TK Maxx, and there has also been a lot of pink, definitely my current favourite colour.

Accessorize

As someone who really believes that accessories make the outfit, I find Accessorize in Grand Central to be my idea of an Aladdin’s Cave. Spring always brings new designs and styles, usually with a holiday slant, and this season is no different.

I am obsessed with the dotted bags that have a feel of both the 1950’s, and the 1980’s Princess Diana style. Pearls are also having a moment, the long strands with the mixture of sizes are fabulous, whilst the regal headband with the face net is stunning, something like Princess Grace would’ve worn.

H&M

My favourite High Street store by a mile, H&M always delivers on print, style and accessories. The raspberry straw bag is a must have for Summer, when hopefully this crisis will be over and we’re back enjoying Summer sunshine.