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Just as you want to put your best financial foot forward when applying for a mortgage to buy your first home, you also want to prepare your finances before refinancing a home loan.

A mortgage refi can pay for a kitchen or bathroom remodel, for example, or for something as simple as replacing a homes windows. A home equity line of credit or a home equity loan are two common ways to refinance, and preparing for the process can make the approval process smoother. You could even qualifyfor a lower interest rate on your home loan by improving your credit score.

Here are some things to do before applying for a mortgage refinance:

Check Your Credit Report
Federal law allows people to check their credit reports for free each year. Since there are three major credit bureaus”Experian, Equifax and TransUnion”consumers can check with each agency every four months for free.

Fix any errors you find, such as late payments that you have proof of paying on time. Eliminating any errors can improve your credit score and allow you to borrow more money at a lower interest rate.

Pay Down Debt and Save Cash
If your credit card balances are near your credit limits, pay the debt down so that its no more than 30 percent of your credit limit. Lenders dont like to see credit cards that are maxed out or close to it, and may consider you a credit risk if youre using most of your available credit.

Keep your credit card balances low for at least a few months before applying for a home loan refinance.

Also save as much money as you can in your savings account as a way to show that you can weather a financial storm such as a job loss or major medical cost. Having six months or more of expenses saved is a good goal.

Low LTV
If you owe more than 80 percent of your homes value, then you may be too high to qualify for a loan refi”or at least at a good interest rate.

A loan-to-value ratio, also called LTV ratio, is a lending risk assessment that was done before you applied for your original home loan. The more money you put toward a down payment, the lower the ratio and the lower risk you are considered to be. Buying mortgage insurance can help offset a high risk.

As part of a home loan refinance, a lender will order an appraisal of your homes value. Your real estate agent can help you prepare for this by giving you a rough estimate based on recent home sales in your area.

If you put down 20 percent toward the purchase price of your home, for example, then you owe 80 percent of its value, giving you an LTV of 80 percent. You could have more than 20 percent equity, however, if your homes value has risen. If home values have dropped in your neighborhood, then you may want to rethink refinancing for now.

Published with permission from RISMedia.

Paying off your mortgage early and living mortgage-free so you can use the money for other things”such as travel and an early retirement”can sound like a pipe-dream thats impossible to get to, but it doesnt have to be.

If you have a 30-year mortgage, there are a few ways to cut that time in half, or at least come close to it:

Add a Monthly Payment Each Year
This easy step will cut about three years off a 30-year mortgage by spreading out one extra monthly mortgage payment over a year.

Start by dividing your monthly principal and interest by 12 and add that amount to your monthly payment. At the end of the year youll have made 13 payments in 12 months.

Doing that with a $200,000 mortgage will pay off a 30-year mortgage three years and three months earlier, saving you $18,000 in interest on a loan at 4.5 percent interest.

Refi
Lets say youre five years into a 30-year fixed-rate mortgage, such as the one listed above at 4.5 percent interest for a $200,000 loan. Refinancing to a 15-year loan at 4 percent will pay off the mortgage 10 years earlier and save you more than $60,000.

Your monthly principal and interest will increase from $1,013 to $1,345, so youll need an extra $333 per month to be able to afford it.

Shorter-term mortgages often have lower interest rates, so only refi your loan if you can get a lower rate to make the refinancing costs worthwhile.

If you dont want to refinance but have the extra money each month to increase the payment, then you can pay off the loan in 15 years instead of 30 by making the extra payments. Just make sure to let your lender know that the extra money should go toward the principal.

Use a Windfall
If youve received an annual bonus at work, large tax refund or other financial windfall, putting it toward your mortgage can take a few years off the debt.

Making an extra $10,000 lump-sum payment toward the principal balance on our mortgage sample above would pay off the mortgage two years and four months earlier, saving you $19,000 in interest.

Downsize
Its a drastic move, but selling your home and downsizing to a smaller, less expensive home is another way to lower your mortgage debt.

The profits may allow you to buy a smaller home for all cash. At the very least, a smaller mortgage will allow you to pay it off quicker by making the same payments you did on your old house.

Qualifying for a Home Improvement Mortgage

Making improvements to your home can pay off in a few ways. Additions, upgrades and general property improvements can increase the value of a home, and make it more comfortable to live in.

Using your home loan as a home improvement mortgage to pay for repairs and improvements to a home can be an easy way to come up with the money without having to dig in your bank account.

Home equity loans and lines of credit are two of the most common ways to finance home improvement loans. Theyre secured by the equity in your home, have low interest rates, and the interest you pay is usually tax-deductible.

Home equity loans are a type of second mortgage. Theyre secondary to your primary mortgage, meaning if you dont pay your mortgage and face foreclosure, the secondary loan will only be paid after the primary mortgage is paid off.

The usual home equity loan provides a sum of cash you can spend as you want to, and is a fixed-rate loan repaid over 10 to 20 years.

A home equity line of credit, also called a HELOC, is a line of credit that can be drawn upon as you need it. HELOCs are typically adjustable-rate loans when youre borrowing money, but can be changed to fixed-rate when you pay them back.

To qualify for equity loan, you need home equity, credit and income. Youll need 25 to 30 percent equity in your home so that you can borrow from it and have enough money left for a financial cushion.

For example, if your home cost $400,000 and you owe $300,000 on it, you have $100,000 in equity, or 25 percent. You can borrow a portion of that $100,000 through a home equity loan.

Most home equity lenders will allow you to borrow up to 80 percent of the equity you have in your home. In the above example with $100,000 equity, youd be allowed to borrow $80,000.

A good credit score of 650 or higher is usually good enough to qualify. Youll also need enough income to cover your debt payments, which include your mortgage and new home equity loan. They shouldnt exceed 45 percent of your gross monthly income.

With those ideas in mind, remember to shop around for a home improvement loan. The loan doesnt have to be with your current mortgage lender, but can be with any lender.

Published with permission from RISMedia.

When its time to move your art collection, here are a few helpful tips to keep in mind.

Get Art Insurance

Before you do anything, make sure every valuable item is insured.

Art Handlers

Moving masterpieces is a serious undertaking, and there are services available to handle it every step of the way.

Qualified Movers

If you dont feel that professional art handlers are necessary, at the very least, make sure your moving company has experience with valuable items.

Climate-Controlled Storage

If your artwork needs to be stored before it can be moved into a new location, choose a facility that can provide climate-controlled storage.

Published with permission from RISMedia.

In addition to being unsightly, mold in your home can create numerous health problems, from breathing issues to skin irritations, fevers and more. Below are some tips for keeping your home mold-free.

Treat topically. Homeowners often have their own mold-murdering solution they prefer. Whether you prefer vinegar, hydrogen peroxide or bleach, clean surfaces monthly to keep mold growth under control. Make sure you research your topical solutions before applying them ” bleach to a painted wall can discolor it.

Add ventilation. In addition to removing mold when it pops up, adding ventilation to an under-ventilated space can be key in keeping mold at bay. Your bathroom and basement are prime mold spots, so decide whether or not you should add an extra window to open the space.

Seal spaces. A crack in your basement’s foundation may be the culprit of the mold popping up. Have an expert do a walk-through with you to point out problem areas and then plug them up to battle mold even when you’re off-duty.

Published with permission from RISMedia.

A mortgage payment can easily be the biggest bill in a monthly budget. Coming up with that money can be easy in some months and more difficult in others. Turning those difficult months into easier ones is possible with a few tactics.

Here are five hacks to help make paying your mortgage a little easier each month:

Get a side job
Just earning $500 extra a month ” or $125 per week ” can make paying a mortgage easier. To do this, get a side job for one or two hours per day at a gig you enjoy.

Consider dog walking, house sitting, driving for Uber, delivering meals or teaching a class at your local community center. Set each paycheck aside for your mortgage bill.

Rent out a room
There are several options for renting a room and making some money on the side. You can be a full-time, live-in landlord and rent out a room to a tenant by the month.

Airbnb allows users to rent rooms on their schedule ” one day at a time, a weekend, week or longer. Or rent your entire house for a few weeks while youre away on vacation.

Rent or sell your stuff
From your car, bike, surfboard and other gear, you can make some extra money by renting out your stuff when its idle.

If you want to get rid of something youre not using, then sell your unused books, bike, clothes, furniture and tools, among many other things, on sites such as eBay, Craigslist, Amazon and used book websites.

Use a work bonus or tax refund
A bonus at work or a tax refund can seem like found money, and its easy to spend it on a splurge such as a vacation.

Another use it to put it toward your mortgage for a month, saving you a payment and giving you a month of relaxing by not having to pull money from your regular budget to make a house payment. It can free up your other funds to invest or put aside in an emergency fund for a rainy day.

Pay down the principal
The above tips are meant to help you come up with some extra money so that your monthly mortgage payment is easier. While that can be good in the short term, you can also use the extra money to reach the long-term goal of paying off your home loan earlier. If your loan doesnt have a penalty for prepayment, then add to what you pay each month to your mortgage bill, and be sure to specify that the extra amount goes toward the principal.

It will help you pay off your mortgage faster and will save you thousands of dollars in interest over the life of the loan.

Hope you found these tips helpful! Contact me for more insights and info.

Published with permission from RISMedia.