5 Ways To Lower Your Mortgage Payment

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1. Get rid of your PMI: PMI is the lender's protection in case you default on your loan and cannot make your payments. Typically borrowers that can't put down at least 20% are required to have PMI since they are seen as a riskier investment. If you live in an area that has seen rising home prices and have been in your home for at least 2 years, speak with your lender about dropping your PMI. This can save you an average of $195 a month for a $200,000 loan.
2. Lower your PMI: In January 2015 the government announced lower PMI rates for buyers with FHA loans. New homebuyers will be able to take advantage of these lower rates and existing homeowners may be able to refinance and lower their PMI rate.
3. Refinance: Refinancing to lower your PMI is not the only way to refinance your loan. Taking advantage of lower mortgage rates or switching from a 15 year loan to a 30 year loan can save you thousands of dollars. Speak with your lender to discuss options available to you.
4. Buy down your rate: If you are purchasing a home, speak with your lender about the possibility of buying down your rate. If you are able to, putting down more money initially to buy a lower interest rate can save you a substantial amount of money over the course of the loan. 
5. Find a tenant: If your home has an extra room, especially with a private entrance, consider taking on a tenant. 

Happy Friday

Can You Finance A Home After A Short Sale?

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Are you thinking of financing a home this year? Have you been through a short sale? Pay close attention to your credit report; it can make or break your new mortgage. Lenders are required to accurately report the true circumstances surrounding a delinquency.  Normally for a short sale, your credit report will read "settled for less than full balance."  Typically your new lender will want to see this versus a foreclosure on your report. Although the lender is required to report accurately, that doesn't mean they always do. They may report "settled for less than full balance, chapter 9."  This would indicate a foreclosure as would any mention of chapters 5 or 8 as well. Having a foreclosure on your report can make it very difficult for you to get a mortgage as you otherwise would two years after a short sale. Are you out of luck at that point? Maybe not-here are some ways to challenge those marks on your credit report:
1. Write to the creditor.
2. Send a copy of the final settlement statement indicating that your previous property was in fact a short sale and also include a copy of the grant deed transferring the property from you to the buyer.
3. Let the creditor know that there is an error on your report (chapters 5, 8, or 9) and that it must be removed in order to indicate the short sale.
4.Wait for a confirmation letter which may take about 60 days to receive.
5.Re-apply for the new mortgage.

What Every Homeowner Needs To Know About Home Insurance

Fox Business

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• What it covers: An average policy will pay for damage to your property and possessions due to certain storms, fire, theft, or vandalism. Similar to renter's insurance, it can also provide liability coverage if someone gets injured on your property and decides to sue. Your policy also covers shelter costs in the event that you are temporarily displaced from your home. Homeowner's insurance can also protect items outside of the home, such as items stolen from your car; auto insurance won't cover it but your homeowner's policy probably will.
• What it doesn't cover: A standard policy does have some exclusions; earth movements such as landslides, earthquakes, and sinkholes, power failure, war, nuclear hazard, government action, faulty zoning, bad repair or workmanship, defective maintenance and flooding. Wind storms are usually covered, including tornadoes, however some companies don't include tornadoes and hurricanes in high risk areas. Water damage can be hard; normally water from above (rainwater or a burst pipe) is covered but water from below (such as backed up sewers) usually isn't covered.
• Shop around: Don't just shop for a great policy; make sure you find an agent that you trust.
• Actions to reduce premiums: Having a working smoke detector may help lower premiums as will simply having a deadbolt on your door or having a burglar alarm system. A deadbolt can reduce a premium by about 5% and an alarm system can create a 15%-20% premium reduction.
• Replacement coverage vs. market value: Replacement cost covers repairing or replacing your entire home; market value is how much someone would pay for your home and the accompanying land in it's current (damaged) condition. 
• Don't wait to file a claim: When looking into policies, be sure to ask about time limits for reporting claims and then stick to them!
• Write everything down: To avoid any issues, be sure to write everything down about a loss-document it as best as you can. Keep all receipts, contracts, appraisals, and also document phone calls by writing down who you spoke to and when.

6 New Home Trends

Realtor.org

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• Super Kitchens: Kitchens are no longer just for cooking; they are an entertainment space and the center of the home. Kitchens are now being built open to other rooms and islands are being used as a divider between rooms instead of walls. As kitchens are becoming more open, pantries are getting bigger to provide more storage.
• Outdoor/Indoor spaces merge: Indoor spaces are built to flow into outdoor areas so that homeowners can easily go between both spaces. Another note about outdoor areas; the once traditional public backyard is becoming less popular. Having a private backyard oasis is becoming more important to homeowners so builders are starting to position homes so that the backyard is more private.
• Bigger garages: Not only do homeowners want more space for their cars, they also want to be able to use their garage for hobbies, work spaces, and more storage.
• Home office: Home office spaces are increasingly in demand and they may not be placed off of the entry of the home like many have been. Many people want their office to be closer to both the kitchen and the family room.
• Tech spaces: Technology use is widespread so builders are beginning to build small "server" rooms since many homes are now using smart technology. 
• Dual homes: More people are living under one roof due to adults living with their parents longer, older parents moving in, and cultural preferences. Multi-generational homes are emerging that offer features such as separate main entrances and attached suites that serve as private residences. 

Illuminating The Heart Of The Home

Chicago Tribune Homes

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Lighting your kitchen properly is so important, not only for practical reasons, but also to help create a beautiful space. Ideally, a kitchen will have four types of lighting: general, task, accent, and decorative.

General Lighting: This type of lighting illuminates the whole room and allows you to navigate the space safely. The most common type of general lighting are overhead fluorescent fixtures on the ceiling. Can lights can achieve the same look but more attractively.

Task Lighting: This variety of lighting shines directly on work surfaces. Both under-counter lighting and  strip halogen lighting under cabinets are popular and effective choices. Under-counter lights are practical and they help to create a gorgeous space. Task lighting should be installed anywhere you chop, slice, or read recipes. Don't forget task lighting in the pantry too!

Accent Lighting: This showcases any architectural feature or decorative accessory. Accent lighting may be used to shed light on a piece of artwork on the kitchen wall or other unique detail in the room and can create a beautiful ambiance and dramatic effect. Pendant lights are a popular choice for accent lighting although spotlights and up lights can be used too.

Decorative Lighting: This can be a great addition to a kitchen, but it can be overdone. When choosing a decorative light, keep the size of your kitchen in mind. For large kitchens, a chandelier may be appropriate; for smaller spaces a pendant light may be just right. Decorative lighting is important but it can be expensive. Even if you can't afford to put in a light at this time, plan on installing one in the future and have junction boxes put in where you plant to put a light. This allows you to install the lighting without a lot of effort once you are ready to make the investment.

How To Choose A Contractor

Consumer Reports

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• Don't completely rely on reviews: Not all online reviews are impartial so you need to be careful about not just going off reviews. Ask for referrals from people that you know and trust.
• Use word of mouth: It's always a good idea to get recommendations from people that you know and to inspect the job in person to see how it is holding up. Before selecting a contractor, check with the Better Business Bureau and the state's attorney general's office for any complaints that may have been made.
• Beware of the lowball: Although a contractor may have not given a low estimate as a way to manipulate, underestimating the cost of the job means that they will need to make up that difference somewhere-possibly on the installation.
• Shop around: Interview several contractors to find out what the going rate is for your project. Conducting interviews will also help you find someone that you trust and have good communication with.
• Steer clear of allowances: Allowances are open ended amounts in the contract that could end up costing a fortune. Stay with the budget once the work begins.
• Get everything in writing: Obtaining a contract for the job that includes what the project entails, all costs, and an approximate completion date is very important. 
• Don't apply for your own permits: Applying for permits should be the contractor's responsibility so beware of being asked to obtain them yourself. That could mean the contractor is in trouble with the local building department.
• Look into paperwork: Make sure that the contractor's license, insurance, and workers comp policies are up to date. Check contractors-license.org for more information.
• No cash: Many fraudulent contractors will ask for cash up front and then take the money and run. Most legitimate contractors will accept a check made out to the contracting company or a credit card.
• Use a payment schedule: Often times, 30% will be put down upon the delivery of materials. The remainder of the payment should only be made after the job is completed and you are happy with the work.