Summer Home Improvements that Add Value

Are you considering making home improvements this summer to your home? The best home improvement projects will not only add value to the property, but will also make it more enjoyable for you and your family. However, not all improvements will add value. For example, spending on painting the walls is one area which many believe adds value, while in fact owners will see less than 50% of a return, if any. Consider these options instead when you are considering where to make improvements to your home that add personality and value.

Fix it up - Sounds simple enough, but people really don't consider fixing the items in the summer home as an improvement. If deck wood is rotting or if your faucets are leaking, simply repairing and replacing these things will help add value to your summer home. No matter which areas of the home need fixing, it is better to repair these first before you hire contractors to begin new constructions. If you plan on selling the home, buyers will want things to work and look good. And, if you plan on keeping the property, you want to know everything is in working condition. For a reasonable price, you can hire a great handyman to perform all repairs for you.

The lawn - Curb appeal is what draws people to a home. You don't have to spend a ton on fancy landscaping ideas, but nice floral arrangements or a new tree in the front lawn is inviting. Maintaining your lawn will definitely add to the home's value. It is more aesthetically pleasing, and it will also bring you joy to see how great your summer home looks when the lawn and garden are properly maintained.

Consider new lighting - New outdoor lighting will also help increase your summer home's value, plus it doesn't have to be that costly of a project to take on. Run some lights up and down the driveway, or add a new light post to the front porch. Having a nicely lit path is not only easier to get from the front driveway to the door, but it also looks better from a distance.

Shutters - New shutters—especially in areas where adverse weather conditions are a problem—will also add value to your summer home. If it is a hurricane or heavy storm area, shutters will protect the windows and glass along the home's front. Adding new shutters will also dress up the front of the home, as they come in numerous colors, shapes, and design options. Adding curb appeal, adding protection, and adding value for a fairly low cost makes adding shutters to your summer home a wise investment option.

There are a number of projects you can perform when it comes to increasing your summer home's value. These are some of the least costly options, and they won't take too much time to complete. Plus, most homeowners can even do themselves. At a low cost and high return value these are some projects to take on if you wish to increase your home's value this summer.

Creating a Home Office

These days, millions of people work from home thanks to innovative technology. In fact, over 20 million Americans telecommute for work at least part-time. This number is only expected to grow as technology advances. While there are pros and cons to everything, working from home presents more advantages than disadvantages. That explains why so many employees prefer telecommuting over hopping in their car and driving to an office.

Many residential architects are building home offices in new homes and in remodeling projects. A home office is a great way to add value to your home as well as functionality. If you’re thinking of creating your own home office, here are some things that you should consider:

One of the most difficult decisions is where to put the home office. Finding the right spot for your office can be a challenge. Some homeowners like to put their home office in the kitchen—the center hub of the house. Others prefer to create an office in a spare bedroom or the basement. If you choose the basement as the location, you need to make sure the space is absolutely dry. Also consider a private entrance for your home office for extra privacy.

Make technology available in the office. The whole point of working from home instead of the office is to be able to replicate what is available at the headquarters. This means that you need the correct wiring for voice communication, wireless setup, etc. Most homes that were built in the last few years have advanced wiring known as Category 5.

Make use of all available space. There will probably be plenty of wall space in your home office, and don’t be intimidated to use it. You can have bookcases and shelves from the floor to the ceiling if you choose. Don’t worry so much about aesthetics if you need lots and lots of storage space.

Be sure the electrical system is up to par. If you live in an older home with older wiring, there is the potential for power surges that can result in fires. If you need to upgrade the wiring, don’t put it off. Hire an electrician to make certain the system can handle the demands of your home office.

Paint the walls a motivating color. For some, yellow or red gets them motivated to work. Others perform better surrounded by calm blue walls. Choose a color that you love and that will motivate you. And don’t worry about what others think—it’s YOUR home office!

Refinancing a Mobile Home Loan

If you’re thinking about refinancing your mobile home, there are some important details that you should know in advance. Refinancing a mobile home can be a challenge, depending on your current situation. For instance, with the majority of mobile home lenders there is a minimum credit score requirement. Your existing credit history could end up being a big factor.

Another thing to be aware of is that with a mobile home loan, you will normally end up paying more in interest than you would pay with a traditional mortgage loan. This is because mobile home loans typically have a higher default rate. Here’s what else you should consider when refinancing your mobile home:

Why refinance your mobile home?

Before determining how to go about preparing to refinance a mobile home loan, you should first consider your reason for refinancing. This is especially true if your monthly payments are already manageable. Are you hoping to obtain a lower mortgage interest rate? Refinancing could lower those mobile home mortgage payments that you make every month. Needless to say, in the long run, you could actually end up paying less by refinancing.

Some mobile home owners opt to get a refinanced loan so they can switch from their existing adjustable rate. They may be ready for the stability that a fixed rate can offer. Obtaining the right kind of fixed rate may enable you to lock the amount in for the duration of your mobile home loan. Other reasons for refinancing your mobile home loan could be to modify a spouse or co-applicant’s name, or even to shorten the loan term so you can pay it off sooner.

If your mobile home is not affixed permanently to land, your original financing was probably the result of a personal property loan. This is a standard situation, because lenders won’t normally finance homes unless they are designated as “real property” by law. Since mortgage loans have lower interest rates than personal property loans, it makes more sense to try and obtain a mobile home mortgage loan. One way to try and do this is to seek to have your mobile home reclassified. That means permanently affixing your mobile home to a foundation that is approved by the Federal Housing Administration. Doing this will change the classification of your mobile home to “real property” and entitle you to a home mortgage loan.

Government help is available

When you decide to refinance your mobile home loan, be sure to look into the type of government help that may be available to you. There are several government agencies that refinance loans if you are a qualified mobile home owner. Freddie Mac is a government sponsored entity that has mobile home mortgage programs. They are well known for being one of the largest purchasers of traditional home mortgages. But not everyone realizes that Freddie Mac also buys and guarantees a number of mobile home mortgages each year.

If your mobile home qualifies as a permanent attachment to land, you may be eligible for a mortgage loan. Freddie Mac can help whether you’re a lender with a fixed or adjustable rate mortgage. Believe it or not, you can get help from the Federal Housing Administration (FHA), even if you are a mobile home owner. The FHA is responsible for enabling the banks to offer traditional homeowners a variety of low-down payment programs. Now more than ever, mobile home owners are also being encouraged to take advantage of these and other related financing programs.

How Often Should You Replace Major Appliances?

 

Every year, thousands of households invest thousands of dollars on high quality home appliances. While these appliances play a key role in their homes such as making work easier, sooner or later they become inefficient and ineffective. It’s at this point that one has to answer that simple question, should I have them repaired, or should they be replaced?

Since no appliance is designed to last forever, it's important to be knowledgeable about the appliance's lifespan. Failure to do so may lead you to unexpectedly find that the fridge no long works, or that the boiler has gone cold. But since one appliance's lifespan varies from the other, it's wise that you keep a log of each one of them so as to prevent incidences of your family's life being inconvenienced.

 In essence, it's hard to give an exact date of when your appliance will become ineffective. And although some major publications such as Appliance Magazine publishes an annual report showing how long people keep their household appliances, it's worth noting that in most cases, families choose to replace their appliances when they are remodeling rather than when the appliance's lifespan is about to be exceeded.

 How then can one know that it's time to replace their appliance?

 The most reliable way of doing so is by making an approximation or in other words, calculating the appliance's average lifespan. Usually, this is highly determined by the appliance's durability, manufacturing quality, frequency of use, levels of maintenance, the weather, and  how well or how poorly they have been installed.

While a central air conditioning system is designed to last for 15 to 20 years, if you live within the coastal areas, it can end up lasting far less than a decade. In terms of durability and frequency of use, a window air conditioner is more likely to become inefficient a whole lot faster than a freezer. That aside, here's a breakdown on the average number of years some of the major household appliances are likely to last:

Since window air conditioners, washing machines and microwaves are among the most used within the house, they tend to have a lifespan of less than 10 years. To be specific, their approximated lifespan is 5-7, 5-15, and 9 years respectively.

Refrigerators are likely to last for 9-13 years, gas ovens 10-18 years, freezers 10-18 years, kitchen disposals 12 years, dryers 13 years, boilers 13-21 years, and wall ovens 15 years or more.

It’s always important to keep track of your appliance's age. Alternatively, you can pay close attention to the performance of the appliance. Small issues like emitting funny noises and/or frequent malfunctions should be taken as warning signs that the appliance should be replaced.

Should You Get Your Roof Repaired in the Winter?

If the roof of your home is not in very good condition, you might be wondering whether roof repairs and even replacements can be done in winter or not. You may be under the impression that the answer is no, given the tough weather conditions the residents of most areas experience at this time of year which make the task not only unpleasant, but also possibly unsafe to perform. 

Winter roofing repairs can be done- at a price.

While roofing in the wintertime is harder to do and can be unsafe for everyone involved – roofers, homeowners and inhabitants and ever passersby who– the truth is, it can be done if the necessary precautions are taken. This is primarily in the case of an emergency, which is why professional roofers still work during winter if only on a minimum capacity, and usually for a higher fee.

What about a total roof replacement?

So, should you have your roof totally replaced in the winter? Probably not, unless there is a dire emergency. Aside from the fact that it is unsafe and unpleasant, the conditions for roofing aren’t exactly fantastic during winter. Also, failing to respect the need for good weather while fixing or placing a new roof generally tends to result in a less than desirable final product, which will likely not be any safer or less prone to leaking than your current roof.

There are products available that facilitate and make winter roofing possible, allowing for those urgent leak repairs to be done in the colder month. But the fact is that traditional materials don’t dry properly in the freezing cold – or snow – and they don’t dry well with humidity either. This means that the roofing structure will not be fixed properly, and might even become defective and more fragile. Another fact you should keep in mind is that the leaks are harder to find during winter, and looking for them then isn’t the best idea, particularly if you are not experienced and have no idea of what you are doing.

What if you notice a leak in your roof during the winter months?

If you have noticed a leak in the roofing structure of your home during winter, your best bets are: covering the roof with a tarp and waiting for at least a few days of decent weather to appear. Or, take note of any existing problems with your roof, even adding in some photos if possible, and get in touch with a professional roofer to plan for the roof repairs or replacement to take place as soon as possible when the weather becomes more suitable roofing work. 

Should You Refinance to an Adjustable Rate Mortgage?

An adjustable rate mortgage (ARM) is a type of mortgage where the interest rate charged on the outstanding balance varies based on a specified schedule. The interest rate is initially fixed for a given period after which the rate is set periodically. There are many advantages associated with the adjustable rate mortgage especially when compared to the fixed rate mortgage. Below are some of the reasons why you should consider refinancing to an adjustable rate mortgage.

You want a lower interest rate

A lower initial rate is charged on an ARM when compared to the rate charged on fixed rate mortgages. While the initial rate is fixed for a given duration of time, the interest rate is much lower than the rate charged on a fixed mortgage at any given time. This works to your advantage as it frees up some money at the beginning of your loan term. This money can be useful in taking care of other expenses or can be invested in an income generating project.

You’re selling soon

An ARM is ideal for home buyers who wish to sell in the near future. For buyers who foresee a job transfer to another location or a need to upgrade to another house, for example when starting a family, the lower ARM initial interest rate provide a better and cheaper option. Once the house is sold, the loan can then be paid off in full. It is important to note that some contracts stipulate that a penalty is charged if the loan is paid off early. This should be considered while refinancing the mortgage.

You want to improve your financial standing

An ARM mortgage is ideal for homeowners who want to improve their financial standing. The adjustable rates provide short term stability as the homeowners anticipate a better financial standing in the future. The state of the economy also means that homeowners get some relief with the adjustable rate mortgage as they wait for the economy to recover.

Refinancing is not for everyone

It is important to note that an adjustable rate mortgage may not be favorable in some situations, for example where the homeowner is looking to stay in the house in the long haul. You should, therefore, take your time to examine your financial situation and get a professional to advise you on the additional costs to be incurred with refinancing and help you determine whether refinancing to an adjustable rate mortgage will make any economic sense both in the short term and in the long run.

Get Your Home Ready for Fall

The crispness of fall is already detectable in some parts of the country. Now that the cooler weather is approaching, it’s the perfect time to get the fall checklist together for your home. There are some things that you should do as a homeowner to get your house ready for the fall season, including weatherization and maintenance. You may choose to some of the tasks yourself or you can hire a professional if needed. Here’s a rundown of some things you should add to your fall home checklist:

Check for peeling paint. Look for signs of blistering or peeling on the paint of the exterior of your home. If you don’t correct the peeling paint, the siding is not being protected and could deteriorate.

Inspect the roof. Leaking roofs can be a big pain when there is a lot of snow and ice. If you don’t nip roof problems in the bud now, they could turn into bigger issues later on in the season. Inspect your roof thoroughly from top to bottom, checking for cracks in the shingles and curled shingles.

Clean the gutters. It’s important to clean out leaves and tree debris from gutters and downspouts in order to avoid clogged gutters. Make sure they are flowing freely and replace old gutters with ones that have leaf guards.

Get a furnace inspection. You should have your furnace and heating system checked annually for best results. It’s best to inspect the furnace before the heating season begins. Check the furnace filter and make sure it’s clean. Also, get your fireplace in working order.

Caulk the windows. In order to prevent heat from escaping your home during the colder months, it’s a good idea to caulk around your windows and doorframes. This avoids moisture getting in and freezing, which leads to cracks.

Take care of cracks in the driveway. If your driveway is damaged, it can be extra dangerous when icy conditions are present. It’s a good idea to inspect for cracks in the fall in order to avoid bigger problems later on. This goes for your walkways, too.

Remove air conditioners. If you leave them in the window, they can allow cold air to seep in. If the air conditioner is sealed properly in the window, at least cover it for the winter to prevent rusting.

Check fire extinguishers and smoke detectors. You should inspect your home’s safety features at least once per year, but every season is better. Make sure they are in working order, including CO detectors.

Winter will be before you know it, so get your home ready for the fall months. This way, you’ll be prepared for any type of weather and your home will remain comfortable and warm.

Refinancing? Consider the Costs

Waiting for the perfect time to change your home's mortgage at a better interest rate or time? With the inconsistency of the economy, homeowners are struggling to find a way to adapt and adjust their expenditures. This includes mortgage payments, which can put substantial constraints to the budget. As a result, many homeowners are looking into the idea of refinancing. 

When you refinance, you pay off an existing mortgage obligation in order to create new one, but under different and under preferable terms. Why consider it in the first place? Aside from lowering your payment, you also have the option of increasing or decreasing your payment terms. This allows you to pay off their debts sooner, build equities, and put more money on their savings. 

Before setting your decision in stone, you need to carefully evaluate your options in order to choose the loan structure that would best work with your plans. You must know your financial goals, and think of how exactly you will pay the loan. Before you could fully reap the benefits of refinancing, it is important to understand the costs that come with it. It may feel like reliving your original encounter with the same procedures and possibly the same amount of spending.

While there is such an offer as no-cost refinancing in which the lender shoulders all possible expenditures in closing costs, you need to take this on with caution. This can result into two things. They can charge you with a higher interest rate or they can add the total expenses to the amount you’ve borrowed. You will be repaying these fees for the entirety of your loan. 

Generally, the following are list of fees that you are most likely to pay when refinancing:

• Application Fee - This includes the costs in checking your credit report and initial processing of request. In most cases, this is not refundable regardless if your proposal has been approved or rejected. This could range from $75 to $500. 
• Origination Fee - It is a percentage of the total loan, used in processing (preparation and evaluation) your mortgage loan. 
• Title examination and Title Insurance - This fee is for the verification of the ownership of the property, whether the broker or lender wishes to access public records. They can also look into the insurance and policy availed in order to relieve the lender of any discrepancies.
• Appraisal Fee - It is an assurance fee that the property they have acquired is worth the loan that has been granted to you.
• Inspection Fee - This covers inspection of the condition of the properties, which may include termite inspection, structural foundation or a water test.
• Legal Fee – The payment for any legal services that a lender has sought.
• Points – These are negotiated fees at closing. A point is equal to 1% of the total loan. There are two-types: Loan-discount points which can reduce the interest of your loan, and points that brokers may charge in order to yield more revenue. 

Keep in mind that buying a home is one of the most crucial financial decisions of your life. Refinancing can be long and tedious. It is important that you get all the facts and figures straight to determine the best plan for you!

 

Should You Refinance This Summer?

 

Are you trying to decide if you should refinance your existing mortgage this summer? Well, we can help in your decision! In order to ensure the best outcome, it’s best to be informed of the refinancing process and how it can potentially benefit you as a homeowner. Otherwise, refinancing could be a costly mistake if you don’t do your research.

Refinancing costs

You need to consider the costs for refinancing in order to determine whether or not it will be worthwhile for your particular financial situation. Unfortunately, you must be willing to invest some money in order to save in the long run. Be prepared to pay multiple refinancing costs that include filing, credit checks, application fees, title examination costs, and appraisal fees.

 What are the possible benefits to refinancing?

• Lower monthly payment
• Tax benefits
• Lower interest
• Obtain cash
• Consolidate debt

Should you refinance?

There isn’t a clear cut and dry answer to whether or not you should refinance without looking at the smaller details. First of all, if you are planning to move in the next few years, refinancing may not be for you. You want to reside in the house and keep the new loan long enough to reap the benefits, and this may take a while.

If your credit score has greatly improved since your original mortgage loan, it may be a great idea to take advantage of low refinancing rates. Also, if you have high-interest loans that you wish to pay off or get a lower rate, refinancing may be a good option. It’s not a good idea to refinance simply to get cash to go on vacation or buy a new luxury car. Refinancing is a good option for those who want to pay for college tuition or get a shorter mortgage.

Right now, you have an opportunity to get some great mortgage rates through refinancing. And don’t forget about HARP, which lets borrowers refinance even though they may owe more than their home is worth. Keep in mind that the borrower's loan must be owned or guaranteed by Fannie Mae or Freddie Mac. HARP expires at the end of December in 2015.

Most Popular Flooring Options

When you walk into a home, perhaps the first thing that catches your attention is the flooring. The right kind of flooring will enhance the finishing and appearance of your home. Also, flooring that looks attractive will increase your home’s value. Good flooring will also recoup its cost if you ever decide to sell your house at some point.

 

Let's take a look at the most common flooring options available:

 

Hardwood Flooring

 

Hardwood flooring is not only beautiful but also durable. Wooden flooring is available in beech, maple,  oak, walnut, birch, cherry, and many more. Some kinds of hardwood flooring are prone to expanding and shrinking. This may lead to gaps in the floor. Some wooden flooring may also darken with age.

 

Ceramic Tiles

 

Ceramic tiles are the best solution if you are looking for a flooring type that needs waterproofing. Ceramic tile can serve several purposes. You can use them as counter tops or floor tiles. Ceramic tiles sporting a high gloss finish may scratch over time. Unglazed ceramic tiles are ideal for outdoor flooring mainly because they can withstand exposure to water. Ceramic tiles are available in glazed, matte, embossed or textured finishes.

 

Porcelain based ceramic tiles are good at hiding scratches and damages. There is one problem, though. Cleaning grout lines can be quite difficult. Also, if the tiles are of low quality, they may chip.

 

Bamboo Flooring

 

Bamboo flooring is a relatively new type of flooring. This is also a greener option. Bamboo flooring is available in a range of colors. It is elegant and durable and creates a strong and clean surface. However, exposure to sunlight can darken bamboo flooring. In addition, if you install bamboo flooring, you need to ensure that it remains dry all the time.

 

Marble Flooring

 

In terms of durability and versatility, nothing can beat marble tiles. You can install them on the floors and the walls. They can also be used for hallway columns. Marble tiles don't require much maintenance. They can also be cleaned easily. Better still, marble tiles can be engraved with stylish designs that reflect your tastes.

 

Marble tiles are available in different colors. People have been using marble as a construction material for several thousands of years. However, their most popular use is in flooring. Marble tiles are available in different sizes. If you are really handy, you can install them yourself.

 

Laminate Flooring

 

Much of the popularity of laminate flooring can be attributed to the fact that it is quite cheap. Laminate flooring also requires very little maintenance. It is strong and durable. It can also withstand burns, chipping and scratches. Laminate flooring is ideal for areas where you expect high traffic. They look like natural materials and they are also available in a range of designs and colors.

 

Before installing laminate flooring, however, you should remember that they cannot be refinished. Also, they can be scratched very easily. If you are planning to install laminate flooring in areas where it will get exposed to moisture, you should choose laminates suitable for this use. Installing and maintaining laminate flooring is quite easy.

Why Your Refinance Bubble Might Burst

If you have been following the home finance sector, it wouldn’t come as a surprise that mortgage rates are heading north. The climb is gradual but sure footed, making long term homeowners reconsider their financing strategy. Most of them are opting for refinance since it offers significant savings and lowers the burden of monthly payments. However, some homeowners haven’t been able to get their refinance application approved. If you are one such disappointed homeowner or find yourself the verge of applying for refinance, please read the following:

You Have Not-Too-Impressive Credit History

This is an open secret—lenders want to lower their exposure to risk. So they prefer people with solid credit histories. Mortgage lending follows this tradition too. A credit score defines your ability to pay back in the long term. Credit score expectations might be relaxed for the usual, purchase loans, but the housing sector is a different game all together. Your credit scoring is also affected by your choice of refinance, i.e. a VA or an FHA loan. Some loan programs are very strict about the credit score while some don’t think of such scores as a serious eligibility condition. However, the lenders, the folks who actually issue the loans are always on the lookout for better credit profiles.

You Have Over-compromised Your Home’s Value

If you owe much more than the current market worth of your house, a lender is less likely to offer you a mortgage—this is totally relevant for traditional lenders. They don’t refinance homes that are supposedly under the water. Recently, the government introduced some unique refinance schemes for distressed homeowners. However, such programs are numbered. They might not be available in your state. Still, it is better to check through popular refinance programs, like the HARP—Home Affordable Refinance Program. Homeowners can apply for refinancing their Freddie Mac and Fannie Mae loans here.

You Have Substantial Mortgage Insurance

Mortgage insurance continues to test the conventional mortgaging wisdom. Traditional lenders treat it as an additional liability. This is more relevant if the insurance is being paid by the mortgaging firm. More issues persist if the federal government’s HARP program mortgage is involved. The restrictions might have been relaxed by some lenders, but overall mortgage insurance presents a major deterrent to refinancing.

You Don’t Earn Enough

Yes, the economy is progressing, but salaries are still under stress. A recovery is in motion as businesses are hiring more, but the packages on offer, even for experienced and skilled workers, aren’t very inspiring. So, be guarded in how you spend. Not earning enough and paying through a pile of bills can damage your evaluation for a refinance. Lenders too are recovering from the hammering of the economic downturn. Mortgage providers are digging deeper into borrower profiles. Weekend jobs or any type of supplementary income can also work in your favor. Even a handful of mortgage non-payments can work against you.

You Have Jumbo Liabilities

Homebuyers who have spent a fortune on their new residences are at a bigger risk of not qualifying for refinance. Big-property owners often take jumbo loans. These aren’t the safest bet in the lending industry. The slightest indication of a downswing in property rates in the neighborhood can leave such homeowners without any conviction for a refinance.

Creative Ways to Use Your Basement

A full basement foundation may be quite expensive, but it is well-worth the money you spend on it. Unlike a crawlspace alternative, a full basement provides great returns on your investment. In fact, a well-built basement can actually increase the value of your home when it is time to sell.

It’s not just about long term financial gains. Your basement will pay you back in several other ways as well.

Climate

Basements tend to be cool during the hot summer months and warm during the winter months. Since the basement is naturally insulated from heat and cold, you will not have to spend much money on cooling and heating. Because of its temperate climate, the basement is a great place to spend the day when it gets too hot or cold.

Peace and Quiet

Need some peace and quiet? The basement is a great place to escape into. Alternatively, you can move the exercise room or your children's playroom into the basement. This will make the upstairs quieter.

More Space

The basement is also a great place to accommodate your home office. Since many homes are now built on smaller lots, expanding down is better than expanding out.

Basements are no longer dark and dreary. While they are still prone to moisture and flooding problems, latest moisture prevention technologies have made them more livable. In addition, effective basement water barrier products are available nowadays. They can be installed fast and allows people to enjoy a dry and ready-to-use basement.

Because of these waterproofing techniques, your basement can be used in almost endless ways. Here are some ideas for using your basement.

The basement is perfectly suitable for housing certain kinds of rooms.

Media room

You can create an entertainment room in the basement because it is a secluded place. A dark basement is particularly suitable for housing a media room.

Activity room

Your basement can house a children's playroom or a home workshop. It can even house your private gym. The basement is easily accessible; still it is out of the way. By using the basement in innovative ways, you can free up valuable space upstairs.

Wine cellar

The temperate climate inside the basement makes it ideal for storing wine. So include a wine cellar in your basement plans if you are a wine connoisseur.

Laundry room

Consumers now demand more out of the laundry room. Since the basement has easy access to water and drainage, it is a great place for housing your laundry room.

Recreation room

Homeowners often don't mind experimenting with colors and other design elements in their basements. You can build a fully outfitted recreation room in the basement. You should also consider adding a pool table and other fun accessories. If the basement opens to the patio or the backyard, it can also be suitable for entertaining guests on a warm summer day.

Home spa

This might sound a bit unconventional, but the quiet and the peace of the basement make it a great place to accommodate a sauna.

Several homeowners are including a full basement in their house plan because of the many benefits of having one. Gone are the days when basements were synonymous with flooding. Now they have become an integral part of the family living space.

Refinance and Remodel Your Home

Stuck between the options to go for a refinance or to hold back until home improvements are done? You might possibly be considering a construction loan as well to complete your addition, and then later refinance your mortgage. But there once again, you may feel stuck; should the value of your new addition exceed your appraised value? So, the bottom line is to go for improvement or refinancing? How about if we tell you that you could go for both!

Earlier, there were two distinct ways which people would opt for when they wanted to utilize the equity of their houses for house improvements. Based on their current appraised value, they’d obtain an equity loan. Or put some construction plans and specifications together, include some contractor’s bid and acquire a construction loan.

If you look at it, both the ways fall under second mortgage loans.

The amount for equity loans are based upon the ongoing market value of the home, and the construction loans are mostly set according to the “as finished” value of the home. In simpler terms, that’s the value of the home after the improvement work is done. We all know that while doing a major remodeling of a house, often the construction costs surpass the property’s current value. And when that happens, due to the absence of any equity in the home, lenders are not the party to offer their best programs.

Rates on second mortgages are often higher than the rates on a first mortgage. Also, in the instance of a line of credit or an equity loan, the interest rate is never stable. Initially, it’s lower but later it starts climbing higher. Problematic!

Then, if you were to acquire a construction loan or equity loan, the rates would be mostly higher than your current first mortgage finance. And if the construction phase goes on for two to three months, you can’t count on the interest rate to stay where it was earlier.

Problems, problems, problems… But not anymore.

There are lenders who offer a mortgage finance, which takes care of both the issues. You can now not only refinance a current first mortgage into a lower rate, but also simultaneously borrow more for home improvement. All at today’s lower rates, avoiding higher rates and variable construction loan terms. Fascinating!  

So, let’s say, you are looking forward to add an extra bedroom or an extra floor as an improvement to your home. For example, your current mortgage is somewhere $180,000 while the appraise amount for your house is at Rs. $200,000. Not much scope for equity loan here. The improvement you have in mind will cost $100,000. So after the completion of construction work your new value will be somewhere close to $300,000. Now, thanks to the new mortgage programs, you can borrow funds for your dream home improvements using the “future” appraised value of your renovated home, along with all the equity that follows with it. Plus, the refinance will be available at competitive rates. Exciting, huh?

However, the ratio of these lenders is low. You might have to check with a lot of lenders to come across the ones with the new programs. But to get a construction loan along with a regular finance is worth the effort. So don’t let old experiences stop you anymore from transforming your house into your dream house.

Tips for Designing Your Landscape

Looking for great ideas to design your landscape? By simply upgrading your yard, you can give your home a facelift. The best part is that designing your landscape isn't all that difficult or expensive. However, when so many landscaping techniques are available, you might find it difficult to decide which one is right for you.

Here is a quick overview of the hottest landscaping trends that are going to define your yard this spring and summer:

Boxy borders to make a comeback

Landscaping experts have started using plant borders all over again. Plants grown in attractive geometric shapes will give your yard a dramatic appeal. While last year, round corners were more popular, this year boxy borders are all the rage. You can create these borders using low maintenance shrubs. Complement them with stacked containers and green walls.

Add a dash of color

Expect to see a riot of colors this year. More and more landscaping projects now incorporate all colors of the rainbow so plant colorful grasses of all varieties. You should also blend your exotic plants with annuals that require less maintenance. You can expect to encounter containers sporting bright colors like yellow and red. You might even find some metallic shades.

Vertical gardening and green walls

Vertical gardens are already popular in small communities. This trend will only grow in 2014. These gardens are walls of living plants. They also help create a private space in your yard. You can add them to your existing landscaping to give your property a unique visual appeal.

Sustainable landscape plants

Many homeowners now add a mix of vegetables and fruit to their yard. Previously the trend was to use standard landscape plants. Now more people are adopting sustainable lifestyles.

Don't just use ornamental plants for landscaping. By growing herbs, vegetables and fruit you can make the best use of your space. Besides giving your backyard a unique look, vegetables and fruits also provide nutrition to the people who occupy the property.

Incorporate outdoor entertainment technology

Consumer technology is advancing by leaps and bounds and this has started invading our outdoor space as well. People are exploring ways to integrate landscaping and outdoor entertainment. And possibilities are endless. You can, for example, use fountains with sound activated lighting. Many people also use in-built surround speakers. Motion sensor technology lets visitors explore lighted paths. Wireless speakers can be mounted on trees.

Outdoor space to become an extension of indoor space

People now see their yard as an extension of their living space. This encourages them to explore all possible ways to make their outdoor space more functional.

Outdoor furnishings have already become an integral part of landscaping. Many people are also keen on designing play areas in their backyard. A well-designed backyard can even increase the value of your property. In fact, statistics reveal that homes that have an attractive landscape get sold faster. They also command higher prices.

While designing your landscape try to incorporate elements that will increase your enjoyment of the space.

Things to Consider Before Getting a Refinance

Mortgage interest rates are falling and this has encouraged many homeowners to explore the possibility of getting a refinance. However, before submitting your mortgage refinance application, you have got to consider quite a few things.

Remember that low rates can't be the only reason to get a refinance. You need to consider several other factors as well. As a rule of thumb, you should get a refinance only if you plan to keep the home for a long time. If you can't figure out whether refinancing is good for you, you should ask your lender.

When to refinance

You should get a refinance only when the current rates are at least 1 percent lower than the rate you pay on your existing mortgage.

Refinancing involves closing costs. If you don't plan to live in the house for a long time, the monthly savings that you get from the lower rates may not justify the costs of getting a new mortgage.

The closing costs can run 3 percent to 6 percent of the total loan amount. Lenders might add these costs to your loan amount. In that case, you don't have to bring cash to the closing table. However, you will still be paying for it over the life of the mortgage.

Is refinancing right for you?

To determine whether refinancing is good for you, you need to know your current mortgage payment and the new payment. You should also estimate the length of the time you intend to stay in the house.

When you refinance, your monthly mortgage payments will be lower than what you are currently paying. But if you don't live in the house for long enough, you will not be able to recover the closing costs associated with getting a new mortgage.

So, for example, if the closing costs on a $100,000 mortgage are 4%, you will have to shell out $4,000. If your monthly savings after getting a refinance is $80, you have to live in the house for at least 50 months to recover the closing costs. If you sell the property before that, you will incur a loss. It gets better the longer you stay in the house. This also explains why refinancing is not the right option for people who plan to move out in a couple of years.

You should consider refinancing only if the new rate is at least 1% lower than your current rate. If you can get even lower rates, refinancing becomes a much better option. If the rates are lower, your monthly savings will be higher and you will reach your breakeven point in less time.

Some other factors, too, can make refinancing a better option. For example, your earnings might have improved since you took the last mortgage or your credit rating might have gone up. When your income or credit rating is high, lenders will be more interested in considering your application. In this case, you will be able to negotiate lower rates and lower closing costs. This will further shorten your breakeven period.

Bottom line

Don't get refinance just because everybody is getting it. Your financial situation might be different from theirs. When you get refinancing, you are getting an altogether new mortgage. So during the first few years, most of your monthly mortgage payment will go towards interest. This makes it difficult to build equity.

 

Why Wooden Flooring is a Good Investment for Your Home

Wooden floors bring nature inside and that is their biggest charm. Hardwood flooring is particularly popular in open floor house plans.

Though more expensive, wooden flooring tends to last a lifetime and that makes it cost effective. Ceramic tiles are still the most popular flooring materials for homes. Hardwood flooring is also gaining popularity. In fact, the number of homeowners who get wooden flooring has consistently increased over the last few years.

The impact of great flooring

When you walk into a home, the first element that catches your attention is indeed the flooring. Flooring creates the ambience and binds the different parts of the home together. The flooring used in kitchens and large rooms is particularly important.

When you run wooden planks of the same color and the same species along the length of a room, the result is simply spectacular. For an open floor plan, it creates a seamless look.

Hardwood is still less popular than ceramic tiles because it is more expensive. However, its popularity is steadily increasing. Hardwood flooring is more common in high-end, luxury homes. Entry level homes, too, have started using hardwood flooring.

Why wooden flooring is better

Wooden floors last forever. That is the main reason people get them. If you install flooring that doesn't last for a long time, you will have to take it out at some time. This is a major disruption and it will cost you dearly. On the other hand, when you install wooden flooring, you can rest assured that the floor will outlast your home.

The housing market in the US is showing signs of recovery. The value of homes, too, has appreciated over the last few years. Many people now have considerable equity in their homes. And they are eager to further increase the value of their homes. As a result, they opt for materials that last a long time and have good resale value. Wooden flooring provides good return on investment. Appraisers too have started recognizing its value. This also makes it more popular as a flooring solution.

People now use wooden floors of all kinds. They mix raw finishes with polished one and dark hues with light hues. The black and brown shades are now giving way to lighter ones. That said, the grays aren't going away.

As far as the finishing is concerned, more and more people are getting matte finishes probably because they are better at hiding imperfections. When you use matte finish, you do not have to worry about the scratches on the surface of the wood.

Interestingly, the planks aren't just getting lighter; they are also getting wider. However, before installing a wide plank, you need to examine the quality of the wood.

Solid or engineered?

Solid hardwood tends to be more popular than engineered hardwood. Nearly two-thirds of homes that have wooden flooring use solid hardwood. One-third uses engineered hardwood. Laminates and vinyl sheets can also provide the wooden look. Bamboo and cork are also good alternatives. However, when it comes to wooden flooring, the challenge is to produce the effect that attracts the homeowner to hardwood. Wood exudes comfort and warmth. It brings the nature inside and that is its biggest plus point. Look-alikes can't beat its charm.

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.