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Mortgage News Matters

4 Benefits of Downsizing to a Townhome

street view of multi level townhouse

Like a condominium, downsizing to a townhome is a great option for homeowners who are looking for less space and less maintenance in a property.

Though they do require additional costs, like homeowner’s insurance and association fee; Townhomes offer additional advantages, like more privacy and fewer restrictions. To help you decide whether a townhome is the best option for you, we’ve listed four of its major benefits.

What is a Townhouse?

A townhouse is a multilevel residence that is physically attached to a larger group of residences along a given street. Like a condo, a townhouse typically requires ownership. However, they differ in the fact that they are often sold with their plot of land. Which can make them more expensive.

What are the Benefits of Downsizing to a Townhome?

  1. Ownership. With townhomes, there are two different types of ownership: a (1) fee simple and (2) condominium. Condominium ownership means the buyer only owns the inside of the property and the exterior is maintained by the HOA and paid for through regular fees.

    A fee simple ownership, however, gives the buyer ownership of the plot of land the property is sitting on, including the front, side, and backyards. This provides for more freedom with the property, but also requires more maintenance from the owner.
  2. Lower HOA fees. Because they often require less maintenance and have fewer amenities, townhomes typically have fewer HOA fees, in comparison to condominiums. It is important to keep in mind that paying fewer HOA fees does not mean less maintenance for the owner. If maintenance is necessary on the exterior of the home, it is at the owner’s expense.
  3. More Privacy. A townhome typically offers more privacy, because unlike condos or apartments, they only have neighbors on either side of the home, rather than above and below. In addition, townhomes generally have their own yard separate from the publicly shared amenities.
  4. Rules and Regulations. Generally, townhomes have less rules and regulations compared to condominiums. This is beneficial to those who value freedom of expression and less restrictions.

Considering downsizing, but still aren’t sure whether a Townhome is for you? Check out our next blog on the benefits of moving to a Villa.

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Mortgage News Matters

4 Benefits of Downsizing to a Condo

condominium building set on a bright blue sky

Downsizing from a home to a condominium is a great option for homeowners who find themselves using less of their space, looking to downsize, or simply interested in a home that requires much less maintenance to take care of.

Significantly smaller than a typical home, a condo can be a townhouse, loft, or high rise, and often includes additional costs, like homeowner’s association fees and homeowner’s insurance.

To help you decide whether this choice is right for you, we’ve decided to share four of the major benefits of downsizing to a condo.

What is a Condo?

A condo, or condominium, is a privately owned unit within a community of other units. Like an apartment complex, a condo is part of a larger building. However, unlike an apartment, residents are the owners of their own unit, rather than merely renters.

What are the Benefits of Downsizing to a Condo?

  1. Pricing. Depending on your market, owning a condo can often be more cost-efficient than owning a home. It is said that in rural areas, single-family homes appreciate at a greater rate compared to a condo of the same size. However, in cities, condos rise in value quicker than single-family homes located further from the city center. It is important to keep location in mind when looking for the best pricing.
  • Less Maintenance. Significantly smaller in size, condos require relatively less maintainance to take care of than a home. This gives residents more time to spend doing the things they enjoy.
  • Onsite Amenities. Like an apartment complex, condos often have onsite amenities like pools, gyms, and community areas – to name a few. Residents pay HOA fees that cover costs like maintenance of these common areas, so they can enjoy these amenities without having to worry about upkeep. 
  • Sense of Community. Condos are set up like little neighborhoods. They often become close knit communities where everyone feels a sense of trust and belonging. This can be a relief for many who like their independence but also want to feel a sense of community.

Considering downsizing, but aren’t sure if a Condo is the right choice for you? Check out our upcoming blog on the benefits of downsizing to a townhome.

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Mortgage News Matters

What are the Benefits of Renting vs. Owning your Home?

street sign that says rent and own

Deciding whether to rent or own a home is a personal choice that requires careful consideration. In order to help you eliminate biases and make the right choice for your unique situation, we’ve listed the benefits of each below:


Benefits of Renting:

  1. Lower Acquisition Cost. Typically, buyers need an average of 3.5% – 23% of the purchase price for their down payment and closing. Compared to the cost of 1-2 month’s rent, renting is less costly in the short-term.
  2. Lower Qualification Standards. Though some programs, like FHA loans, have more flexible guidelines, renting requires less invasive paperwork by far.
  3. Freedom to Move. Renting allows the flexibility for renters to move every year when their lease agreement is up.
  4. Fewer Maintenance Costs. Renters can rely on their landlord or property manager to quickly fix any maintenance issues they may have. Homeowners, however, are responsible for all costs that go into all home repairs.

Benefits of Owning:

  1. Personalization. Owning a home gives the owner more freedom to alter their home’s appearance.
  2. Stability. Rentals can see drastic increases in price due to fluctuations in the market. Owning a home, however, ensures consistent monthly payments.
  3. Tax Benefits & Savings. Homeowner’s may be eligible for tax deductions on their home mortgage interest, property taxes and origination/discount points for owning a home.
  4. Appreciation of Property. Historically, home prices have exceeded consumer inflation, even with periods of declining value taken into account.
  5. Increased Net Worth. According to the Federal Reserve Board of Consumer Finance, the average net worth of renters was just $4,000 compared to that of homeowners worth $184,400.


To learn more about the benefits of renting vs. owning, contact your local VanDyk Mortgage Loan Originator today!

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Mortgage News Matters

What Does a Lender Look for When Approving My Loan?

business professional holding clipboard that says 'contract'

When beginning the pre-approval process, most lenders are looking for a few major things: Credit History, Capital, Employment, and Collateral.

  1. Credit & Credit History. Lenders will use your current credit and past credit history as an indicator of your ability to repay your debt. They will look at how much you currently owe, how often you borrow, how often you pay your bills – and if you often pay them on time, as well as how well you live within your means. To check your credit score, visit annualcreditreport.com.


  2. Capital. Capital tells the lender how much money you have, to put towards your down payment, as well as funds that will remain in your accounts after closing to be used for reserves. This includes such things as moving expenses, money required to turn on utilities, emergency repairs, or cost of ongoing maintenance. This is crucial information as you begin your home buying journey and apply for a loan.


  3. Employment. Employment tells the lender approximately how long it will take you to pay back your debt. They will check things like your previous employment history, as well as your current employment situation. Lenders are looking for stability in your income earnings trend to help determine its likelihood of continuance.


  4. Collateral. Collateral protects the lenders in the case that borrowers are unable to repay their loan. This is equally important to lenders as credit, income, and employment, as it acts as a safety net in the unfortunate circumstance that the loan is unable to be paid.

For more information on the Loan Application and Loan Process, contact your local VanDyk Loan Originator today!