Repayment of a home equity line of credit requires that the borrower make a monthly payment to the lender. For some home equity lines of credit, borrowers can make interest-only payments for a defined period of time, after which a repayment period begins. Interest-only payments are based on the outstanding loan balance and interest rate. During the repayment period the payment includes both repayment of the loan principal, plus monthly interest on the outstanding balance. Loan payments for the repayment period are amortized so that the monthly payment remains the same throughout the repayment period, but during that period, the percentage of the payment that goes towards principal will increase as the outstanding mortgage balance decreases.

Home Equity Line of Credit Payment

View Resource Home Equity Line of Credit Payment
Moving Yourself or Professional Movers? Do you think hiring professionals will cost you more than moving yourself? Think again. Although it might seem like you have gotten a great deal on a rental truck, all the effort and sweat you put into the move and the gas money to keep the U-Haul’s tank full may just make hiring the pros worthwhile. However, if you are still undecided, here are some things to consider. Do it Yourself Handling the move yourself comes with both pros and cons. On the pro side, you are in control of your move. You can choose to go in a single day or spread it over several days. You also handle all the boxes, so you can take special care of items that are fragile. If you are doing the moving, you can decrease stress and the cost of fuel by avoiding rush-hour traffic. A move can also turn into an opportunity to spend time with family or friends who might lend a hand to help you with the move (although it might cost you if you buy them pizza and beverages!). There also some cons with a DIY move. The biggest by far is the amount of heavy lifting that you (and your family and friends) will have to do. Also, since you are transporting your fragile items, if they break during the move, there is no chance for you to get reimbursed for mishandled items. Professionals You might find that you have less flexibility with moving dates and times if you choose to hire professional movers. There are also some unreputable movers out there, so you will need to do your due diligence and read reviews or get references. Chances are the cost will be more to hire a professional mover too, but you are also getting peace of mind. Other benefits of hiring a professional include: Shopping for Professional Movers If you are considering hiring professional movers, be sure to get at least a few quotes from different moving companies. Although you may think you cannot negotiate with movers, it is possible especially during their off-season when they will lower their rates. Before hiring a professional moving company, do a background check on them. Ask for references, look up reviews online or check the U.S. Department of Transportation’s Safety and Fitness Electronic Records. DIY Packing Tips There are ways to cut down on your packing costs too. Have a garage sale. Moving is the perfect time to go through your stuff and get rid of things you hardly ever use. Have a garage sale to sell items you no longer need and use the extra money to help cover your moving costs. Don’t pay for boxes. Of course, you need boxes to pack your things in, but you do not have to pay for them. Moving companies charge absurd amounts of money for boxes. Instead of buying them, there are ways you can get boxes for free such as: Start early on collecting boxes before your move to save you time. You will likely know months in advance that a new place to live is on the horizon. That is an excellent opportunity to get a jump on collecting the boxes you will need. Use what you already have. Use plastic bins or suitcases to pack some of your things. Linens and sheets are great for wrapping items. DIY Truck Rental and Storage If you do decide on a DIY move, you are going to need a rental truck. Your rental should be big enough to accommodate all your belongings. Although you probably won’t feel comfortable driving a large truck, renting a truck that’s too small will cause you to take multiple trips and will cost a bundle in gas money. It will also be more time-consuming. You may need to store some things as well. You can often find good deals on off-site storage services, such as getting your first month free. In some cases, there are storage unit companies who offer combo deals where you can also rent a van or truck along with your storage unit. Whether you choose to hire a professional mover or do it yourself, the costs of moving are unavoidable. You can keep your moving costs down, but you just have to plan ahead, compare prices and think outside the box when packing.

Manage Moving Expenses

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Loan protection insurance can be an ideal solution to protect yourself, and your finances, against economic emergencies. While no one wants to contemplate a future in which they are unable to take care of their monthly bills, loan protection insurance promises to help with specific loan repayments if you are unable to work due to disability or periods of unemployment. However, it is essential to understand the details of what loan protection insurance provides before deciding as to whether it is right for you. What Is Loan Protection Insurance? Most people make major purchases with the full expectation that they will be able to continue working and producing at their current or better income level for many years to come. Then the unexpected happens, and they are unable to work and earn income. It could be an illness that requires a lengthy recovery and rehabilitation period. It could be a financial windstorm that leaves you, along with thousands, if not hundreds of thousands, of people out of work with no job prospects in sight. Loan protection insurance is designed to help you by providing financial support to help you repay your loans in these instanced. This type of protection is usually an optional coverage you can purchase when obtaining personal, auto or home loans. How Does It Work? In the case of mortgage protection, the insurance works by making your monthly mortgage payment on your behalf if you should become disabled through an illness or injury that renders you unable to work or if you are laid off from your job. Most plans have strict limits about how long you must have the policy in place before it will begin making payments for you as well as limits on how long the mortgage payments will continue. The standard for most policies is that the plan needs to be in effect for 60 days before the protection goes into effect, with a limit of 24 total months of protection for the duration of the coverage. Most people can get back on their feet from a temporary setback or make other arrangements to pay their mortgages within a 24-month frame of time. However, one consideration, in deciding whether a loan protection plan is right for you, is whether the 24-month window would provide the necessary payment coverage in the event of a deep and extended recession or lengthy illness. How You Can Benefit: The Pros The main benefit of loan protection insurance is the peace of mind it provides. The time-window for protection allows you to focus on treatment and recovery (or a job search if you are unemployed) rather than how you are going to keep a roof over your head in the coming months. That is the point of insurance, after all, to provide peace of mind to the insured and allow them the breathing room they need to focus on recovering from disasters without the added worry of potential financial devastation. Not only can it help you keep making your mortgage, auto or personal loan payment while experiencing a significant illness, loan protection insurance also protects your credit score while you go through these devastating experiences as well. That can help you with negotiating power when you attempt to obtain favorable loan terms for other loans or credit cards. Had you not been able to continue making loan payments, you might receive less than optimal rates on new loans or suffer penalizing higher interest rates on outstanding credit card balances. Finally, acceptance rates for this type of insurance protection are incredibly high, so most people don’t have to worry about being turned down because of your age, occupation, marital status, or other financial issues. What to Look Out For: The Cons It is not all sunshine and roses though. Not only do you need to stick with reputable insurers for this type of insurance protection, but you also need to make sure you read and understand the fine print of your policy. Common causes for refusals to pay out, for instance, include: Some people find employer-sponsored long-term disability plans are better solutions to help them cover their costs and expenses during periods of unemployment due to illness or injury, though those aren’t effective for unemployment concerns. You will need to compare policies, investigate companies offering coverage (and their records for denying claims), and choose your loan protection insurance policy wisely if this is the route you decide to go. There are no absolutes. Even companies with the best reputations may have policy shifts that err on the side of the company rather than the insured. The Takeaway: Loan protection insurance fills a unique role with potentially substantial benefits, but there are downsides too. The key is to investigate thoroughly, understand your risks, and make informed decisions about the value of the coverage, should you have a prolonged health problem or period of unemployment.

The Pros and Cons of Loan Protection Insurance

View Resource The Pros and Cons of Loan Protection Insurance
You did not begin saving for retirement early enough. Now you are in your 40s or 50s, and you’ve barely saved anything for your post-work years. Fortunately, you can take steps to resolve this. Just because you procrastinated doesn’t mean that you are doomed to a retirement filled with money woes. First, don’t worry about the past. You cannot go back in time and boost your retirement savings. The only thing you can do now is to start saving in earnest. It will not be easy, but if you cut down on your expenses and boost your rate of savings, you can still build enough cash to enjoy a comfortable retirement. The key is to start saving immediately. The more time you waste, the fewer chances you’ll have of building a large enough nest egg to reach your goals for your retirement years. Working longer isn’t enough It is tempting to think that you can compensate for your late start by working longer. After all, every extra year you log at your job will boost the amount of money you receive each year from Social Security. Problem is, even if you work until you are 70, the extra income you earn and the increase in your Social Security benefits will not provide enough money to live a comfortable retirement. The reason? Social Security payments simply don’t provide enough income for most retirees. The vast majority of retirees will need to rely on other forms of income such as savings and their company-sponsored 401(k) to pay bills and reach their goals during their retirement years. If you are relying on working longer, then, you’ll need to explore other avenues to boost your retirement preparedness. Boost savings, reduce expenses There is no magic formula that late starters can use to build a retirement nest egg. Saving enough money for retirement requires hard choices: You’ll need to increase your income and dramatically reduce your expenses. The first step? Employees in their 40s and 50s need to eliminate as much debt as possible, especially debt from credit cards. Your retirement years will be far more stressful if you have large amounts of consumer debt. Make the smart financial decisions today to forego those pricey electronics or extravagant meals out if you cannot afford to pay for them with cash. You’ll be grateful you did once retirement comes. Another possible move? Downsize to a more affordable home. If you are making a large mortgage payment each month, you can dramatically reduce your monthly expenses by selling your existing home and downsizing to a condominium or smaller home that comes with an equally smaller monthly payment. This might even make sense for your and your spouse. Your living space needs will grow smaller as you age and your children move away. Why not downsize to a home that not only saves you money but also comes with fewer maintenance needs? You might also make lifestyle changes to reduce the amount of money you are spending each month. You do not need the most expensive luxury car on the market. A mid-priced vehicle can get you to and from your office just as well and for a much smaller monthly payment. Instead of shopping at the highest-end department stores, consider shopping at more reasonably priced retailers. You do not have to cut out all your pleasures, but the more frugal you are now, the better off financially you’ll be once you retire. At the same time you are reducing expenses, you’ll need to boost the amount of money you are saving for retirement. This starts with your company’s 401(k) plan. Make sure you are contributing the maximum amount possible to your plan. Since your company will automatically deduct these dollars from your paycheck, you’ll barely miss them. However, the extra savings will add up once retirement age hits. Open IRA accounts, too. Moreover, if you already contribute to IRAs, boost your yearly contributions. Remember, once you hit the age of 50, you can make “catch-up” payments to your IRA and workplace retirement plans. For traditional and Roth IRAs, this means that you can invest an extra $1,000 above the standard contribution limits for these accounts. For 401(k) plans, you can contribute $6,500 more above the annual contribution limits. These additional catch-up payments can dramatically boost the size of your retirement savings. If you receive unplanned for money from raises and promotions, make sure to save it for retirement. Too often, when workers receive raises, they simply increase their monthly expenses. Don’t fall into this trap. If you are still worried about your future retirement savings, consider adding a second income to your household. This could mean that a spouse who has not worked in the past takes on a second job. It could also mean starting a home-based business or renting out an unused mother-in-law suite in your home. Producing a new income stream for several years before you hit retirement age can significant ally improve your financial standing once you leave the workforce. Adjusting retirement plans Even if you take all these steps, you still might not save enough to meet your original retirement goals. If this is the case, you may have to adjust your expectations for your retirement. For example, maybe you and your spouse planned to travel the world. If you started saving for retirement too late, this might not be possible. Instead, you may have to adjust your expectations. You might have to be happy with a retirement in which you pay your bills, cover your medical costs and spend quality time with your adult children and grandchildren. The key is to be comfortable during your retirement. You might not lead a life of luxury, but you also won’t be worrying about paying the grocery bill each week.

Catching Up Tips for Retirement

View Resource Catching Up Tips for Retirement
Creating a budget and learning to live within certain limitations does not have to feel like walking across hot coals barefoot. It’s true! There are things you can remove from your budget that you will barely notice once you make a move, like these 25 (almost) pain-free budget cuts.
  1. Ditch the drive-through. Whether you engage in rigorous meal planning or begin an amazing love affair with the crockpot, it is easier than you think (and healthier, too), to give up your drive through habit and dine in your own home instead.

  2. Curtail your coffee habit. Designer coffee is a great pick me up in the middle of the afternoon and even first thing in the morning, but it is one that comes with a hefty price tag. Buy a coffee maker, a thermos, and invest in a few key syrups and creams for a more budget-friendly coffee-shop experience.

  3. Switch to generics or store brand products. While there are some products we all love and cannot live without, there are many others we buy out of habit rather than a necessity, or even desire. Consider switching to generics for those products and see what a difference it makes for your budget.

  4. Check out local consignment shops instead of buying new. From clothing to sporting equipment and furniture, there is a consignment shop for that with “gently used” products well below retail. If there are none available locally, you might find plenty of online options.

  5. Carpool. Share driving duties and reduce expenses (e.g., fuel, maintenance, wear, and tear) at the same time.

  6. Switch mobile phone plans and carriers. Skip the contracts and go month to month for massive savings.

  7. Stop buying the newest mobile phone to hit the market. Savvy sales staff understand that they can keep you as indentured servants by offering outstanding deals and “financing” on the latest mobile phone. Don’t fall for it.

  8. Cut and color your hair. For women who visit salons monthly, the savings in one year can be substantial.

  9. Bring your lunch (and snacks) to work. It’s a simple shift that will leave you well into the green. It can also signify a healthier way of eating for you as well since your ditching convenience foods from vending machines and takeout from your daily routine.

  10. Bottle your water. This one is excellent for your budget and even better for the planet. How much can you save? According to Earthday.org, you can save up to $266 per year by bottling your own water.

  11. Reacquaint yourself with your local library. Libraries are not only sources of amazing books, free for the borrowing; they also offer videos, music, audiobooks, magazines, eBooks, and more.

  12. Cancel subscription boxes. While it’s fun to treat yourself to these monthly luxuries, many of them include items that go unused and unwanted. Eliminate the expense and buy items you want instead.

  13. Compare prices on everything. The Internet is a wonderful tool that allows you to see prices others are offering for the items you desire.

  14. Shop around for better deals on insurance annually. You can realize savings year after year by doing so.

  15. Bring your snacks on road-trips. Stopping to eat on the road can be an unnecessary expense when all you need is a quick pick-me-up snack.

  16. Wash your hands well and often. That can help you suffer through fewer colds and illnesses throughout the year, and less cash outlays for medicine or doctor visits.

  17. Use cost-effective natural cleaning supplies. Baking soda, vinegar, and hydrogen peroxide can handle many of the toughest cleaning tasks in your home at a fraction of the costs of designer cleaning products.

  18. Recycle aluminum cans and bottles. Some states offer substantial rewards for recycling your cans and bottles. Others require hefty deposits only returning them if you bring them back to designated recycling centers.

  19. Cut the cable cord. In many situations, you will not even miss it. Invest in a Roku or Amazon Fire Stick instead. If you cannot find enough entertainment there for free, there are subscription services like Prime, Hulu, and Netflix that cost considerably less than cable.

  20. Eliminate magazine subscriptions. They create clutter and often go unread.

  21. Use promo codes for items and services you buy online. Many companies now offer discount or promo codes for their purchases.

  22. Stop using credit cards. At an average of around 20 percent interest rates, the interest is killing your budget.

  23. Stop paying for things you do not use. From gym memberships to old gaming accounts, and so much more; almost everyone is paying for subscriptions and services they have forgotten they have.

  24. Identify your spending weaknesses. Moreover, find ways to eliminate them.

  25. Never, ever, shop for food when you are hungry. It does not end well.
These 25 simple and practically painless budget cuts can help you accomplish so much more with your money each month. Try them for yourself and see what a difference they make for your financial situation.

25 Budget Cuts You Can Make

View Resource 25 Budget Cuts You Can Make
When it comes to settling a bill for services rendered, paying a babysitter, splitting a lunch bill with someone or sending money to the other side of the U.S., you have many person-to-person or peer-to-peer (P2P) payment services to help you make that digital transaction. What are Peer-to-Peer Payments? P2P payments are simple-to-use, secure phone apps that allow you to send payments to other people through a linked debit card using your mobile device. They enable you to send money to your friend in a restaurant across the table, anywhere in the country or even in another country. Most apps are free and quicker than trying to write a check or find the right combination of bills. You also have a record of each transaction you make, regardless if it is for gas, rent or the dinner tab. Many of these apps are not always the safest payment method for retail purchases and are more intended for peer-to-peer exchanges from one friend to another. Popular and Safe P2P Payment Apps Some different P2P payment apps include: When using P2P payments, there are some things to take into consideration. For instance, you may experience delays. Even though transaction notifications are sent and received immediately, it could take up to three business days for transaction approval, and the funds appear in your account. However, this depends on the P2P service you are using. You may have to pay fees. Some services charge a small amount to process a payment for a debit or credit card — usually only a few cents for each transaction. Again, it depends on the P2P service. Be sure you read the fee policy carefully. Making Secure Payments Paypal popularized payments between friends and family using a computer or phone. Now, Venmo, Google, and many others offer the same functionality. Credit unions and banks offer this service now and even social media networks like Snapchat and Facebook. So, when you are at a restaurant having dinner and you want to split the check with a friend, you just: That is all there is to it. Your friend receives a notification through their app that they have received money. Once they get the money, they can either transfer it to his bank or keep it in his P2P account to use at another time. The P2P app works kind of like a go-between. You link your card, and it enables these types of transactions. However, there are different requirements and different steps with various services. Things to Consider in Selecting a Tool Whether you are still deciding if a P2P service is right for you or you are already using one, there are specific features you want to look for before handing out your financial information. Security You want to make sure that the service protects personal information like your credit card or bank account information. Therefore, search for P2P apps that require more than a single authentication method to verify your transactions or identity while logging in. Transaction Limits Some P2P apps impose limits on transactions that might prohibit you from using the app to transfer large sums of money. Smaller amounts like paying a dinner tab probably won’t be impacted, but if you are looking to move more substantial funds, you will want to check and see how much you can transfer. Fees Many P2P services charge a small percentage of your transaction if you make money transfers using your credit card. If you are using your bank account or debit card to make the transfer, many services do not impose a fee, but with credit cards they do. You also may want to see if there are additional costs for sending money internationally. Speed and Accessibility Some P2P providers may take up to six days to clear the transaction. Others may do it inside of a day or less. Then there are bank or credit union providers that provide real-time transfers if you are a customer of that bank. It can be quite convenient being able to transfer money using your phone. However, like anything else involving technology, you need to research to find a secure and reliable service. A little research on the different features each service has to offer and reading each company’s terms and conditions can help you make a better decision when choosing the right P2P payment service for your needs.

Peer-to-Peer Payment Tools

View Resource Peer-to-Peer Payment Tools
When your credit score runs a little too low to get you the things you want and need in life at an attractive interest rate, it’s time to consider making changes. One of the changes many consider is credit repair services. But, is the investment in these types of services worth the cost?

What Is a Credit Repair Service?

Credit repair services help to remove inaccurate or incorrect information from your credit report. That is something that can bring your credit score down. Companies that offer these services provide advice on how you can improve your credit score. They will also file disputes with credit reporting agencies on your behalf. What they cannot do, though, is remove accurately reported information, even if it harms your credit score. The types of inaccuracies credit repair services can address include the following: Many of these services charge monthly fees and may take several months, or even years, to completely clean up your credit report. You should note that you can clear up many of these on your own. However, it is a time-consuming process. Mostly, you are paying for the convenience of having someone else act on your behalf.

What Is a Credit Report Dispute?

When you find inaccurate information on your credit report, you must dispute it to have it removed. The process does take time, energy, and some degree of persistence. That is one reason why it can take so long for credit reports to improve — even when using credit repair services. When you file a dispute with one or all the major credit reporting agencies: They will notify the reporting creditor of the dispute and allow them 45 days to prove their claims. Once the 45 days pass, it will be up to the credit reporting agency to remove the negative report or leave it in place. If they deny your dispute, there is a process by which you can escalate your claims. You will generally need to offer proof of your own for this to occur, such as a canceled check reporting that you have paid your bill. The great thing about a credit repair service is that they can do these things and save you the time and the hassle involved. On the other hand, these are all things you can do for yourself.

Are They Worth It?

In some cases, they are well worth the money. That is especially true if you have inaccurate, false, or outdated information on your credit report keeping your credit score artificially low. Some people view time as precious of a commodity as money. If you are among that group, you will likely feel that credit repair services are well worth every penny you have saved because it saves you time. However, credit repair services cannot help everyone. After all, they can only help with the removal of false information from your credit report. In most cases, waiting seven years will allow all the negative information on your credit report to disappear.

Credit Repair Service Company Caveats

We should also note that some credit report repair scams are lurking out there. Look out for and steer clear of companies that hold lofty promises and demand upfront payments. It is also a big red flag if a credit repair service company says they can remove all negative information from your credit report. That is not true, as no one can remove accurate information from your credit report.

Takeaway

Are Credit Repair Services Worth It?

View Resource Are Credit Repair Services Worth It?
No one wants to think about ending a marriage before it even begins. However, the American Psychological Association reports that about 40 to 50 percent of married couples in the United States will eventually divorce. Unfortunately, that means that it might be a good idea to expect the best and plan for the worst. Getting a prenuptial agreement is like getting marriage insurance – of a sort.

What Is a Prenup and Do I Need One?

A prenuptial agreement is a written, legal contract you sign before you are married, determining how to divide assets and liabilities in the event of a divorce. It lists all the accounts, property, and debts owned by each person before the marriage takes place and what each person’s rights will be to these if the union gets terminated. Additionally, prenups can shield one party from the other party’s debts. That means if one party has enormous student loan debts, those debts would be exempt from any divorce settlement, and the other party would not have to pay them. Do you need one? If you have assets going into a marriage you wish to protect or shield your partner from your debt, then yes, a prenup is recommended. Prenups do not, however, protect assets or debts acquired during the marriage from divorce proceedings.

How Does a Prenup Work?

Laws vary from state to state about what can and cannot be in each state’s prenuptial agreement. For this reason, it is best to work with an attorney familiar with your state’s legal framework for prenuptial agreements. Some prenups can even restrain couples from speaking ill of one another after a divorce. Essentially, couples can agree to any of the following in their prenup: Remember that every prenup is unique, and you and your partner may have differing interests in the prenuptial agreement. Putting together a deal can be an important test for your relationship. There will be challenges as you determine who gets what if your marriage should end in a divorce. Also, remember that just like in a divorce, you each need to have individual representation to protect your interests. A prenup is not about hamstringing either party. It’s about creating an equitable dissolution of the marriage based on the assets and liabilities you brought into the marriage with you.

Advantages and Disadvantages

Before you decide a prenup is right for you, make sure you consider the potential advantages and disadvantages that go along with it. Advantages: Disadvantages: Takeaway

Should You Get a Prenup?

View Resource Should You Get a Prenup?
Electric cars sound like an excellent investment — especially if you have been at the gas pump lately. Not only do they cost less to operate, but they also produce fewer emissions, which is terrific for the planet (and all the creatures that call it home). In the past, electric vehicles have had a few problems to overcome, including the availability of different vehicle types. Today, more electric cars are available than ever before. There are even several highly stylish options to consider. Now is the perfect time to give electric vehicles a second look if you have been sitting on the fence.

What to Consider

Before you dive in, there are a few important considerations you will need to keep in mind. Electric vehicles are not the right choice for everyone. As you explore your options and try to decide whether electric cars are the best choice for you, take into account the following: As you can see, there are quite a few considerations to mull over when deciding if an electric vehicle is an appropriate choice for your driving needs.

Costs

With the broader proliferation of electric vehicles in the marketplace, many ownership costs have decreased. While many states are imposing higher taxes on electric car drivers, the fact remains that the broader competition is keeping prices in check. Plus, there are ways you can bring down the costs even further, including the following:

Buying Used vs New

One of the significant drawbacks of purchasing used vehicles for many is the lack of warranty protection, especially for batteries. The average EV covers the battery replacement for up to 100,000 miles, making it a non-issue. Buying used can save money, but some people simply like that “new car smell.”

Takeaway

Buying Your First Electric Car

View Resource Buying Your First Electric Car
The real estate market offers many different housing options. Depending on your life stage, financial resources, and where you are on your financial journey, one type might work better than others. When choosing between houses, townhomes, or condos, how do you know the right choice for you? The better you understand each type of home, the wiser choices you can make when buying your first, second, or even final home. Here’s what you need to know.

Where to Start

One of the most crucial details to understand when choosing between a condo, townhome, and a house is that upfront costs are not the only costs involved. For instance, condos often have the lowest initial costs. However, they also tend to have much higher HOA fees to cover maintenance costs of exterior spaces and common areas. Townhomes often cost less than houses, but you still have many homeownership expenses, such as maintenance, repairs, upkeep, and property taxes, plus HOA fees. These fees can easily exceed those of homes that do not require HOA fees. Houses tend to require higher upfront costs than most townhomes and condos, and owners are fully responsible for maintenance, repairs, and upkeep. On the flip side, a traditional house offers more privacy than any other options on this list.

Comparing Types of Homes

Condos Condos are excellent choices for first-time owners as well as those who are mature or elderly and looking to downsize their space and maintenance commitments. They offer lower price points for entry, and maintenance and upkeep of the buildings, lawn, and public areas occur on your behalf. That no-maintenance lifestyle, though, has a price of its own. Don’t overlook the costs of the condo association and other fees that go along with your condo lifestyle. Condos can also have complex amenities, such as a pool and tennis court. Townhomes Townhomes are typically multi-level structures. They can be a good option for small families and couples who want a little more privacy than condos provide. They also require a deeper personal commitment to things like maintenance, repairs, taxes, and other fees than condos may. Many townhomes have small front and backyards to be maintained during the summer. They may require snow removal or other services in the winter. Like condos, townhome communities may offer amenities like a clubhouse, pool, fitness center, and tennis courts. Houses Houses are a proper choice for people who are most concerned about the room to spread out and the privacy from the prying eyes and ears of neighbors. You do not have to worry about neighbors below your floor, above your ceiling, or on the other side of your walls. Instead, you do need to worry about maintenance and upkeep for your home and lawn, driveway, and sidewalks for all weather conditions that come your way. If you are looking to the future, though, a house of all these options maintains its value best. Keep that in mind and choose the option that works best with your short and long-term financial goals.

Making a Decision

It may feel like the weight of the world is on your shoulders when you make your home buying decision. It is, after all, usually a long-term commitment with a 15-year or 30-year mortgage attached. However, it is not the end of the world. You have the option of upgrading (or downsizing) into a different home as your needs change and the situation warrants. Weigh the dollars and cents against your needs and select the option that offers the most opportunities for growth, future sales, and low-maintenance living (if that is what you’re looking for).

Takeaway

House, Townhome, or Condo?

View Resource House, Townhome, or Condo?