Why you Should Consider Student Renters Insurance

Renter’s insurance is something all college students should consider, whether you live in a dorm, rent an apartment, or rent part of a house. Many students have the mistaken belief that their landlord’s homeowner’s insurance will cover the loss of their belongings if they are stolen or damaged. But your landlord only gets compensation for structural damage to the building or the apartment. If you experience a flood, fire, or burglary and are not covered by renter’s insurance, you won’t receive any compensation for your losses. You will have to start from scratch, replacing your iPod, laptop, books, television, clothing, and other possessions in your apartment.

Even if your personal property is covered under your student renter’s insurance policy, going through a disaster like a fire or burglary can be very stressful. Luckily, there are some basic preventive measures you can take to lower your chances of experiencing damages or theft. These things will generally lower your insurance premiums as well!

There are numerous ways to lower your chances of having your property stolen or damaged. The neighborhood in which you rent can make a difference in the premium, so consider several things before signing a lease.

Find an apartment or house with features like an alarm system, deadbolt door locks, motion sensitive outdoor lights, and a parking lot rather than on-street parking.

Stay away from the well-known student apartment complexes that are famous for their great parties. Places where there are lots of visitors frequently can make you more vulnerable to theft.

If you have the option, choose an apartment that is not on the ground floor to minimize your risk of burglary.

It may sound strange, but live with one to three roommates. If you have more, you could get an inordinate amount of foot traffic in and out every day. Having roommates is a good idea for safety reasons, but living in a crowd can raise your vulnerability to not only theft, but also property damages of various kinds.

Here are some ways to protect yourself and your belongings at home and on campus.

Always lock up your bicycle, even if it’s in your garage.

Ways to stay safe – Be aware of your belongings and surroundings, at home as well as on campus.

Never leave a candle or incense unattended.

Install and use a lock on your bedroom door.

If you have any small valuables like jewelry, or if you have a passport, invest in a small, fireproof safe to store them in, or leave them at your parents’ home.

With a little common sense, you can start off the semester with confidence that your studies will be the most important concern you have. It helps a lot to have the peace of mind to know that your possessions are protected by student renter’s insurance.

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Basics of Apartment Renters Insurance

When you rent an apartment, make sure to ask your landlord if you are covered under his owner’s insurance policy. They usually aren’t, but it’s worth asking. Most commonly, tenants have to get their own renter’s insurance policy when they move into an apartment. This is a very wise investment, because if there were a theft or a natural disaster, you could lose everything you have.

Before buying a renter’s insurance policy, make a comprehensive inventory of everything valuable that you own, including the following: clothing, fixtures, electronics, furniture, or other high value items like musical instruments. It is unlikely that your landlord’s homeowner’s insurance would cover anything that you own, so it is your responsibility to make sure you have your own insurance if something were to go wrong.

After you make an inventory of the things you need to insure, come up with an approximate total value of those items. Be as accurate as you can and document your list and date it. This will help minimized disputes over the value of the sum total of items you’re insuring. If you live where there is a higher risk of flooding or hurricanes, you should look into extra protection from these disasters. They are usually not included with a basic renter’s insurance policy.

Start your search for renter’s insurance coverage by searching the internet. You’ll find a huge range of insurance companies and you’ll be able to narrow the list down to a handful that cover the things you want insured. Get several – six or so – quotes before settling with one insurer. And make sure they are actual quotes and not just estimates. Insurance companies have been known to “hook” customers and then raise rates drastically once the customer has signed the contract. Compare several policies by price and coverage so you can find the best balance of both.

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Save Money on Homeowners Insurance Premiums

You may not know this, but there are things you can do that can help you save a lot of money on your homeowner’s insurance. Here are some tips on how to get discounts and otherwise save when insuring your home.

Home security is an important way to save money on your insurance. The more secure your home is – with deadbolt locks, smoke detectors, burglar alarm systems, etc. – the less your insurance should cost.

You should strongly consider buying all your insurance needs from one insurer to earn a discount. But first you have to make sure the discount is steep enough that it’s worth it.

The third thing you can do to help save on your homeowner’s insurance is to look into raising your deductible. The deductible is the amount of money you must spend out of pocket before your insurance policy’s coverage begins. If you do  not make a claim against your homeowner’s insurance for several years, you can reap a lot of savings on premiums this way.

It never hurts to be up front and ask if you qualify for any discounts from your insurance company. Often they’re willing to help you, particularly if you’re a longtime client.

Last of all, always compare quotes to be certain you’re getting the best rates on your homeowner’s insurance. There are quote comparison websites that can help you do this easily. Compare several companies’ quotes and coverage, not just two or three. The rates can vary quite a bit, and you want to be sure you’re getting the best deal that you can.

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Why would you refinance your home?

If you would read this a few years ago, chances are that you might not even know what refinancing meant. People would purchase a house, get a mortgage for paying and then keep on making payments every month until they were debt free.

Things are worked out differently nowadays. Most people refinance their loans eventually. Most often, people exchange their loan for some other may be better loan. However, this makes the loan extend for more number of years.

There are several reasons as to why you or anybody would want to refinance their homes and they are valid too. Following are some of the reasons that might make you refinance your home.

Getting a fixed rate of interest

A few years ago, the market saw historic dropping of interest rates. They were lower than ever. As a result, several homeowners decided to go for loans with adjustable rates. These offered them the benefit of lower rates of interest rather than being stuck with a fixed rate. This way they could pay less and be able to purchase more ownership. However, with the current trend of increasing rates, homeowners are finding fixed rate loans much more secure. This is one of the reasons that people might want to convert to fixed rate mortgages.

Looking for a lower rate of interest

This will be the reason when interest rates are dropping like ripe apples. Often people will exchange any high interest loans for the new low interest ones. It is the sensible thing to do anyway. Lower interest also means lower payments every month.

Looking for a longer term

Sometimes, people fail to do the planning. As a result, while a 12-year loan might seem better than a 20-year one because you become debt free in less number of years, you will have to pay bigger instalments every month. This might not be affordable. However, you realise that after you have taken the loan. Therefore, you might then think about refinancing to a longer-term loan so that you can have lower monthly payments.

Looking to borrow money

The previous five years have seen “cash out” refinancing becoming more and more popular. When the homeowners are satisfied that they have enough equity in their house, they look to cash it out in order to get some money to remodel, pay out other debts and for many more reasons.

All these reasons seem quite reasonable and logical to refinance to any homeowner. However, they should realise one thing that with refinancing comes the closing costs and these can be in thousands. If you are considering to refinance your mortgage, you should first think about the amount of time you are thinking of staying in that home. You should not do it unless you are going to stay more than five or six years.

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The basics of forward mortgage

The prices of houses are shooting up high. This is good news for the homeowners and bad news for any future homeowner or a homebuyer. Things have become more and more difficult for them owing to the huge payments that are to be made as down payment as well as the closing costs involved. It is hard to imagine the state we would be in if no mortgage was available.

The traditional mortgage or forward mortgage causes you to be under debt as per the amount that you borrow from the lender. It will also affect the per cent of your ownership or the equity that you have in that house that you have bought.

Any cash advances made in order for your benefit will also be included in the debt. Now, home equity is the value of the house minus the amount in debt that you owe to the lender. For example, if the value of your house is $125,000 and if you owe a mortgage of $25,000 then the equity for your house would be $100,000. Now, this will be falling debt and rising equity.

When you first bought your house, you made a certain down payment. The rest of the value of your house was paid through the mortgage that you took. You have to keep making specific payments every month for a specific number of years in order to repay that mortgage.

As a result, with the passing years, your debt due to mortgage will keep on decreasing while the equity on your home keeps on increasing.

You can use your income to repay your debt using forward mortgage. With time, this is increasing your equity or share of ownership for your home. In order to obtain such a forward mortgage, you will first need to be eligible and pass their qualification standards.

You might have to show the proof of your income, any requirement of assets to show that you can afford these payments every month. The amount that you can secure for a mortgage also depends upon your age. The younger you are, the more you can mortgage.

Forward mortgage is all about paying for your house step by step, one monthly instalment at a time. Within the specified years, you will become debt free and the house will become all yours.

Therefore, as time passes, while your debt will be decreasing, you will be coming closer and closer to owning your house fully. Thus, rising equity, falling debt is the name of the game in forward mortgage.

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Refinancing your mortgage

When it comes to refinancing your mortgage, it is more than simply considering the interest rates. It is not all about seeking out the lowest rate of interest. In fact, many times, the mortgage terms are reason enough to seek mortgage refinance.

While there are several reasons that might lead you to refinance your mortgage, changing from an adjustable rate to a fixed-rate loan is the most common of all. There is a single difference between these two loans.

An adjustable or variable interest loan is just what the name says. Every month you will have a different payment to make. The amount is designated or decided by certain lenders depending upon the current prime rate of interest. There are some obvious negative aspects of this kind of a loan.

The most inconvenient of all is that the borrower will never know how much exactly they will be paying this month. While payments do not fluctuate a lot, there is always a little variation.

If you happen to miss any payment for whatever reason, you will end up paying ridiculously high interest for the missed payment or late fees. This is true even if you missed it because of an oversight owing to the fact that you were not aware of how much you had actually to pay.

Therefore, stability is one of the prime reasons that people seek to refinance their mortgage.

Now you would say that if people want stability then why go for adjustable or variable interest loans in the first place. The reason is that some years back, the market saw great fluctuations in interest rates.

While rates are quite steady at present, it is always possible that they will go up at any time. That is a reason for seeking mortgage refinance. Even if the rates of interest shoot up, you are at least secure in the knowledge that your loan is secure in a certain specified rate.

On the other hand, if the rates were to drop significantly, you would be stuck paying a high interest when others were paying a lower one. Therefore, it is all up to you to decide if you want to take the risk.

At times, the situation of the borrower does not allow them to go for a fixed-rate loan. However, you can better your position by regularly paying for your present loan. This might allow you to qualify for a loan that offers better terms.

In fact, if you have been “good” and made your payments in time and the lender is convinced that you are completely willing to satisfy the terms and conditions of the better loan then they might offer you that. in this case, mortgage refinance might be a better option.

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More about second mortgages

If you are a homeowner then your house is probably the biggest asset that you have. You realise this no better than when you go out looking to find someone who will offer you a loan.

That is the reason the recent few years have seen people use their homes as a means to get some extra cash at times of dire need. A great way to get your hands on some cash through your house is by getting a second mortgage.

Now, there is nothing difficult or un-understandable about second mortgages. They are what the name says they are. It is a loan that you take in addition to the existing mortgage. The amount of the loan will depend upon your share or equity in your house.

People take second mortgages for a number of reasons. They do it to refurbish their homes, do some home improvement, pay off debts, pay for education and many others. Because this is your second mortgage, it is a given that you have done this before.

However, things are much simpler the second time comparatively. Besides that, the costs of transactions are also significantly lower. However, the rates of interest will be higher on this second one.

A second mortgage will usually lend you a certain fixed amount of money depending upon the home equity you own and you will have to repay the amount over a certain period. If you are taking your mortgage from the same lender as your first then they will combine both your mortgages.

While it sounds quite simple, you do need to remember some things. First, if you do not own a significant share of your house yet, then it is not the right move to take a second mortgage on your house. You should have made payments for the first mortgage for quite some time before you can think about getting a second one.

While you might be able to get yourself second mortgage, you will be charged enormous rates of interest if you do not hold much equity. Besides that, your loan amount will be quite low. In all, it will be more of a waste or loss of money and time. It is better and more worth waiting before you get a second mortgage.

Therefore, you should always keep looking for other options in case you cannot get a decent amount at good enough interest rates against your home equity. Alternatively, you can look at options such as home equity loans as well as home equity lines of credit. Both of these are options where you can borrow against the home equity.

You can decide which one to choose.

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