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When youre comparing mortgage terms and looking for the best deal, you will come across two figures: the interest rate and the APR. Its important to understand the difference so you can avoid overpaying for a home loan.

What is the Interest Rate?
The interest rate is the amount the lender will charge in exchange for loaning you the principal amount. The interest rate is expressed as a percentage and is based on market rates when you take out a mortgage, as well as your credit score. Your monthly mortgage payments will be based on the amount you borrow and the interest rate.

What is the APR?
The annual percentage rate (APR) is a better reflection of the overall cost of a mortgage than the interest rate. The APR is also expressed as a percentage and is almost always higher than the interest rate.

The APR includes the interest rate, as well as other costs, such as loan origination fees, closing costs, mortgage insurance and discount points. Lenders decide which fees and costs to include in the APR. Before you compare loan offers, make sure you know what each lender includes in its APR.

How to Figure Out Which Mortgage Would be the Best Deal
The interest rate can help you figure out how much you would pay each month, while the APR can give you an idea of how much you would pay over the life of the mortgage. The APR is calculated assuming you will keep the loan for the full term. If you plan to stay in your new home for decades, look for a mortgage with a low APR, since it would have a lower cost over the entire loan term. If you plan to sell the house before you pay off the mortgage, you may be better off choosing a mortgage with a higher interest rate and lower upfront fees.

An online mortgage calculator can help you compare loan offers and figure out when you would break even so you can decide which loan would be the best option for you. The break-even point depends on the amount borrowed, the interest rate and all associated fees.

You may choose a home loan with a fixed or adjustable interest rate. If you select a mortgage with a fixed interest rate, comparing loan offers can be fairly straightforward. If you are considering an adjustable-rate mortgage, however, the APR cannot accurately convey the overall cost of the loan since there is no way to predict what the interest rate would be in the future. If you decided to refinance, you could have to pay thousands of dollars in closing costs, which could add to the total cost of the mortgage.

Get Professional Advice
Choosing the right mortgage can be confusing, especially since lenders offer loans with a variety of terms. A mortgage broker can explain your options and help you find a loan with competitive terms.

Published with permission from RISMedia.

Family rooms are changing and becoming a more active space. A simple setup with a sofa and TV is fine, but if you really want your family to spend some quality time together, take your recreation room or refurbished basement to a new level with these ideas.

Home Theater
Movie nights at home can come close to replicating the movie theater experience”without having to leave home, waiting on long lines for popcorn or dealing with chatty audience members who kick your seat. If your family loves flicks, consider a giant screen, a projection system and stadium-seating.

Table Games
So much of what we do these days involves technology, but there are great joys to be taken by playing games that have been around for ages. A pool table is a great option, but its a game that requires a lot of skill. Other, more fast-paced options include foosball, shuffleboard, air hockey or dome hockey. One thing to keep in mind, these games can get expensive, so be sure to pick one everyone in the family likes and will get lots of use.

Bring the Arcade Home
Pinball machines are an absolute blast. Its a game thats simple to play (if hard to master) for everyone in the family. Or perhaps youd like a classic arcade video game like Space Invaders, Pac-Man, Galaga or Donkey Kong in your home. You can even find consoles that have multiple games.

Let the Music Play
Put the digital playlist aside and bring back classic ways to enjoy music. Jukebox machines are stylish and enhance the look of a family room while providing a fun way to listen to your favorite tunes. And vinyl records are back in vogue. Set up a turntable in your family room and have fun shopping for records. You can find lots of used disks at bargain prices at stores, yard sales and online.

And when youre done, youll have a perfect space for family fun”and great parties as well.

Published with permission from RISMedia.

Many people love the idea of relaxing in front of a fireplace on a cold winter night. The sight, smell and sound of a fire can create a relaxing ambience. While the idea of having a home with a fireplace may be appealing, the reality does not always live up to peoples expectations. The amount of heat given off, the amount of work required and the cost depends on the type of fireplace.

Wood Fireplace
A wood fireplace can create a cozy atmosphere. If the power goes out, a wood fireplace can continue to heat your home. It can also provide light and a way to cook during a power outage.

Since most of the heat produced by burning wood escapes through the chimney, a wood fireplace is not very energy efficient. A fireplace insert can increase the amount of heat that stays in the house. If the damper doesnt close enough, the house may have drafts, which can result in high utility bills.

Embers from a fire can spread and cause nearby objects to catch fire. Curious children and pets can be seriously injured if they get too close. If you buy a house with a wood fireplace, you will need to stay close by to prevent accidents.

Smoke from a wood fireplace can release pollutants into the atmosphere. A fireplace can also release carbon monoxide and other dangerous gases inside the house.

Because of the risks and the amount of work involved, many people who buy a house with a wood fireplace only use it occasionally. The costs of cleaning, maintenance and wood may not make owning a house with a wood fireplace cost effective.

Gas Fireplace
With a gas fireplace, you can simply press a button and instantly enjoy a cozy fire. If the house has more than one gas fireplace, you can heat only the room where you are, rather than the entire house, to save money. The fireplace can provide heat even if you lose power.

A gas fireplace wont produce the aroma and crackling sounds of a wood fire. On the other hand, gas fireplaces are easier to maintain than wood-burning ones. There is no ash or soot to clean, but the fireplace should still be inspected every year.

Electric Fireplace
An electric fireplace can provide heat and light and can be used even in a small space. It can be expensive to use, however, and it wont work during a power outage. An electric fireplace also does not look realistic.

Should You Buy a House With a Fireplace?
Many people search for a new home with a fireplace, then find that they dont use it as much as they thought they would and realize that they spent a lot more than they expected to maintain it. If youre thinking about buying a house with a fireplace, be realistic about how much you would use it and consider the costs and safety issues to decide whether it would be worth it.

Published with permission from RISMedia.

Here are the most exclusive home features that high-end homebuyers are looking for in the city.

Doorman

It will put you at ease to know your building has an extra layer of security and convenience.

Private Parking

A designated parking space, especially in a garage, is an absolute must-have.

Outdoor Living

Whether its a terrace overlooking the cityscape, an enclosed courtyard or a simple balcony, an open-air area is priceless.

Skyline Views

Day or night, nothing beats the dazzling views of a city skyline.

Private Elevator

Providing convenience and security, you can monitor the elevator with video surveillance before bringing guests up to your home.

Published with permission from RISMedia.

Published with permission from RISMedia.