Designing Your Guestroom

Your guest room is unlikely to be the most used part of your home unless, of course, you have guests all year round.

Whether you frequently entertain guests or not; a guestroom is a great addition to your home. It also presents a great opportunity to try out new decorating ideas. And if you like some of these ideas, you can implement them in other parts of the home. Here are a few ways to decorate your guest room.

Buy a great bed

In a spare bedroom, the focal point is more likely to be the bed. Make it great. If your bedroom has hardwood flooring, you should invest in a country brass bed. Sleigh beds, trundle beds and canopy beds are all great choices for your guestroom.

If you just bought a new home, you probably can't spend a lot of money on furnishings.  That said, you must still splurge on good bed linens. Bedding is perhaps the most prominent design element in a bed room. A classic bed with luxurious linens will instantly make your spare bedroom attractive and inviting.

Choose an attractive color palette

Watercolor palettes tend to work well for spare bedrooms because they provide ample opportunities for experimenting. Country coastal designs and patterns are quite popular right now. Make sure that your color palette includes natural beach colors and muted shades. Peaches and pinks that remind you of seashells and sky blues will lend a soothing touch to your spare bedroom. You may also add a touch of yellow to create the feel of a sunset. Choose a white palette for your walls and furniture. They will allow the colorful linens to instantly grab attention.

Furnish the room well

If your guest room is spacious, there is ample scope for furnishing. Your guest may prefer to have breakfast in the bedroom. In that case, a table and one or two stools are a must.

As a great host/hostess you will definitely want to invite your guests to join you for tea or coffee. However, you must still consider adding a coffee maker in your spare bedroom. You should also provide a comfortable chair.

If your guest enjoys reading, a lamp, a chair and a table will be highly appreciated. Think about what people might like and add those elements.

Provide entertainment

Provide all possible forms of entertainment. Your guest room should have a television, stereo, DVD player and radio. You should also have a nice collection of DVDs, MP3s, and a cable connection.

Include a small bookcase. While choosing books for your guestroom library, look for both classic and new titles. You don't know what your guest will enjoy reading.

A well-designed guest room will make your guests comfortable when they spend time under your roof. It is also a great place to showcase your taste and hospitality.

While designing your spare bedroom, forget about your personal preferences. Remember that a guestroom is not the right place to experiment with those garish colors and patterns that you secretly admire. Instead, opt for colors and patterns that will appeal to a wider audience. Neutral shades are ideal for this.

 

What To Do If Your Mortgage Refinance Application Is Rejected

Just because a lender has turned down your application for mortgage refinance, you don't have to lose heart. In fact, by fixing the problems and improving your finances, you should be able to get refinance from another lender.

When a lender rejects your mortgage refinance application, the first thing you need to do is to find out why it was rejected. Fix those problems and apply again.

The lender can refuse your refinance application for several reasons. Here are the top five reasons:

-The current value of your home is less than the amount you owe on your mortgage.

-Your credit score may be less than satisfactory.

-You cannot prove your income.

-You have listed your home for sale.

-The lender suspects that you are not earning enough to cover your expenses.

While some of these issues can be fixed quickly, others may take time.

You are underwater

If you are underwater (i.e. the value of your home is less than the money you owe the lender) you have basically three options:

Tell your lender that you will make a down payment. So, for example, if the current value of your home is 90,000 USD and you owe 100,000 USD on your mortgage, you will have to make a down payment of $10,000 to cover the difference. In addition to this, you have to bring the customary down payment. Most lenders insist that the buyer should contribute at least 5% of the value of the property.

Make sure that the appraisal is accurate. All information (square footage, number of bedrooms, bath) in the appraisal should be correct. If there are amenities like a deck or a patio, a large lot or energy efficiency features, you need to ensure that they are properly valued.

The HARP refinance program helps homeowners who are underwater on their mortgage. See if you are eligible for that.

Your credit score isn't satisfactory

Lenders have increased the minimum credit score required for getting a mortgage. Your credit score may not have changed in the last few years; however, it may not be high enough to refinance your current mortgage.

If your credit score is lower than 620, getting a refinance is difficult. In fact, some lenders only consider borrowers who have a credit score of 660.If you have a credit score of 740 or higher, you will get the best possible rates.

How to increase your credit score

Pay your bills before they are due. You should also pay off your credit card debts.

Consider getting an FHA loan. These loans require larger down payments and may also have higher interest rates. However, they take borrowers with a low credit score.

You can't document your income

Lenders will ask you to prove every source of your income. In order to ensure that every source is considered, you should mention all sources of your income on your tax return. You will need to submit your income history of at least two years to refinance.

You don't earn enough

Lenders compare your monthly income and monthly expenses to determine your debt-to-income ratio. You can increase your ratio by reducing your expenses or increasing your earnings. You can perhaps borrow money from your relatives to pay off your debts. Or you should consider getting an FHA loan. An FHA loan will consider the incomes of other family members who are ready to co-sign the mortgage.

You have listed your home

If your property is already on the market getting a refinance is nearly impossible. However, many lenders will consider your application if you are ready to take the property off the market. Some lenders will make you wait for 60 days, even after taking the home off the market. If you have already listed your home for sale, you will probably want to find a lender who doesn't wait for 60 days.

If none of these strategies work, you should wait until the refinance boom ends. When lenders aren't all that busy, they are more likely to entertain your application.

 

Common Refinancing Options Offered by FHA

Now that interest rates are pretty low, many homeowners are looking to refinance their existing mortgage. Lenders have also sensed this interest in refinancing and are trying to attract borrowers by offering special schemes. While some lenders offer mortgage refinance with no-appraisal, others promise mortgages with no closing costs. This leaves the borrower confused.

How can a borrower decide which refinance program is the right for them? Interestingly, there is no such thing as a right or wrong refinance program. It all depends on your unique financial situation and goals. When it comes to refinancing, you have got mainly two options: the FHA Positive Equity Refinance and the FHA Streamline Refinance.

FHA Positive Equity Refinance

This is another refinance program approved by the Federal Housing Administration. This is the refinance option mainly offered by national home loan companies like PennyMac. 

The FHA Positive Equity Refinance is reserved for homeowners who have non FHA-insured home loans. In order to qualify for this refinance program, buyers should be current on their monthly mortgage payments. Homeowners who have negative equity on their home are eligible to get refinance through this program

The FHA Positive Equity Refinance will give borrowers a 30-year fixed rate mortgage. In addition, the borrower will be eligible for a reduction of at least 10% in their mortgage balance. There will be no closing costs.

In order to qualify for this refinance program, you need to meet the criteria specified below:

•        Your home loan is not backed or owned by Freddie Mac, Fannie Mae, FHA, USDA or VA.

·         The amount you owe on your mortgage is higher than the value of your property.

·         You make your monthly payments on time.

·         You qualify for the mortgage under the standard underwriting requirements specified by FHA.

·         The home is your primary residence.

·         Your total debt amounts to less than 55 percent of your total monthly income.

Borrowers who have been convicted of theft, fraud, forgery, felony larceny, tax evasion or money laundering in association with a real estate transaction within the last ten years are not eligible for this program.

FHA Streamline Refinance

This FHA refinance program is reserved for borrowers who have a mortgage insured by FHA. When you choose this program, you will get to adjust the term of your mortgage and interest rate. Better still, this program has relatively simpler underwriting requirements. That means there will be no new credit checks, home appraisal, or documentation. Since there will be no new home appraisals, this option is ideal for borrowers who are underwater on their mortgage.

Applying for this mortgage refinance program is relatively easy. You will qualify if you have a mortgage insured by FHA. Your repayment history over the last 12 months should be clean. You will also be required to prove that you didn't refinance in the last 210 days.

There is yet another requirement. The applicant has to prove that they will benefit substantially by getting a refinance. In other words, they should be able to reduce their monthly mortgage payment by at least five percent.

Refinancing? Here’s What You Need to Know

Homeowners who have decided to refinance this year have made a wise decision because mortgage interest rates are currently still extremely low. Whether you have already decided to refinance or you are in the process of making sure that it is a good choice for you, there are certain things you need to be aware of in order to make the best decision.

Refinancing can be a great option for homeowners like you, but for some, it may not the best time to do so. Factors that can dictate this are your credit score, the costs, and many more. Here are some things that you need to consider when making the decision to refinance:

Break-even point

Will you get ahead or break even by refinancing? If yes, then you refinancing will be a great option for you. You can calculate your break-even point by dividing the costs of the refinance by the monthly savings of the new home loan. The answer you get is the number of months it will take to gain back the costs of refinancing. A two or three year period is the usual amount of time.

Costs

While refinancing can potentially save you money, it is a long process that requires you to pay multiple costs. You will be paying many fees associated with refinancing, from application fees to loan processing fees and more. You want to be completely prepared to spend some money upfront in order to get the process going.

Credit score

Since your credit score is a huge factor in the mortgage rates that you can qualify for, it makes sense to know your credit score before you begin refinancing. Your score should be above average or high, and it will affect the rates you are offered.

Staying in your home

When you refinance, you need to remain in your home at least until you break even. For this reason, if you are planning on moving before then, refinancing will not be a good option for you.

Refinancing a mortgage loan can be a long and costly process, but if you are prepared upfront, you can budget accordingly and get the best refinancing results!