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Paying off your mortgage early could lead to a sense of financial freedom, but its not the right move for everyone. Consider your complete financial picture and check your lenders policies before deciding whether to prepay your mortgage.

Reasons to Make Extra Loan Payments
Prepaying your mortgage would reduce the total amount you would spend on interest. The amount you pay in interest each month is based on the outstanding principal. Reducing the principal would lower your interest charges and could save you tens of thousands of dollars over the life of the loan.

Paying more than required could help you pay off your mortgage sooner. If you have a specific goal in mind”such as paying off your home before you retire or before your children start attending college”making extra mortgage payments now could mean greater financial security and flexibility later.

Equity is the difference between a houses current value and the amount owed on the mortgage. Prepaying your mortgage could help you build equity faster. If necessary, you could access that money through a home equity loan or a home equity line of credit. Getting your equity up to 20 percent could also allow you to eliminate private mortgage insurance and save money each month.

Reducing your mortgage balance could improve your credit score, which is based, in large, on your total debt-to-income ratio. If you applied for a credit card, car loan or personal loan, a good credit score could help you get a low interest rate.

When Prepaying Your Mortgage Might Not Be the Best Move
If you started saving for retirement or for your childrens college education late, it might make more sense to put extra money toward those goals than to make extra mortgage payments. Money that you invested in stocks, bonds or mutual funds could substantially increase in value and help you meet your more immediate financial goals.

If you have high-interest debt, such as credit card balances, you would probably be better off focusing on those than prepaying your mortgage. Interest rates on credit cards are typically much higher than interest rates for mortgages. Eliminating your credit card debt as quickly as possible would likely save you a lot more in the long run than you would save by making extra mortgage payments.

If you dont have an emergency fund with enough money to cover at least 3 – 6 months worth of expenses, focus on that first. If you lost your job or couldnt work for medical reasons, it would be easier to withdraw money from a savings account than to borrow against your home equity.

Communicate with Your Lender
Some mortgage lenders charge a prepayment penalty. Before you make extra loan payments, contact your lender to find out if you would be charged a penalty. If you decide to make extra payments, clearly inform the lender that you want the extra funds to be applied to the principal, not to interest or escrow.

Published with permission from RISMedia.

When decorating your home, think about the type of mood you want to create for family members and guests. Colors have profound psychological effects and most people tend to respond to them in similar ways, although different shades may evoke different emotional responses. In general, lighter colors can make a room feel brighter and larger, while darker colors are warm and make a room feel more intimate.

Colors and the Feelings They Produce
Blue evokes feelings of security, stability and order. Warm shades of blue can be soothing and can make people feel comfortable, but darker shades can elicit feelings of sadness.

Green is a refreshing color that has a calming effect, which makes it a good choice for an area where people socialize, such as a living room or family room. Green also pairs well with many other colors, giving you a wide range of design options.

Red is visually and mentally stimulating. Its a good color for main living areas where you want to encourage people to socialize, but it may be hard to sleep in a red bedroom.

Orange is a vibrant and energetic color that evokes feelings of happiness. It can be an excellent choice for areas where people gather to socialize, but the energy associated with orange may not make it the right color for a bedroom.

Yellow is a cheerful color that can make a room look inviting. People may associate yellow with spring or fall, depending on the shade. Although yellow can make a room feel welcoming, it can elicit negative emotions when used in large amounts.

Brown can make a living room, dining room or bedroom feel cozy. Since brown is a mixture of all three primary colors, it works well with nearly any other color.

Beige can produce a calming effect. It can be used as a primary color, or as an accent color in furnishings, and can be paired with a variety of other colors.

White can make a room feel fresh, light and clean. Since its a neutral color, white can be combined with nearly any other color to produce a desired emotional effect.

Other Design Tips
Dont try to incorporate too many colors into a single rooms design. That could make it feel cluttered and emotionally overwhelming.

Your color options for flooring and furniture will be more limited than your options for paint colors. If you choose the furniture and flooring first, that will make it easier to select a paint color.

Dont forget about the ceiling. If the ceiling is a lighter color than the walls, the ceiling will seem higher. If the ceiling is darker than the walls, the ceiling will seem lower and the room will feel cozier.

Look at home decorating magazines, websites and blogs for ideas and pay attention when you visit the homes of family members and friends. You never know when you might see something that inspires you.

Published with permission from RISMedia.

The exterior of your home is always a huge factor for potential buyers who will envision themselves enjoying the outside area, entertaining friends and family while kids play in the yard.

Thats why when prepping a home for a showing, its smart to think about the outdoors. That could mean power washing the deck, clearing driveways, or even planting flowers. The one area you definitely wont want to neglect is the lawn itself.

The positives of a well-maintained yard are myriad and its important to get your grass in tip-top shape before showing your home.

When it comes to growing grass, consistent care is key and failure to invest in long-term turf care can open the window to any number of problems in your lawn. Its also important to give your grass the fertilizing lawn care and control treatments it needs based on the season. Lawn care for growing grass in summer, for example, is different than the needs come fall. Make sure to sweep any fertilizer that lands on driveways and sidewalks back on to the lawn.

An important component is to properly water the lawn, and it is better to water deeply”down to at least six inches”and less frequently, than lightly and more often. If your lawn dulls in color or begins to wilt, then your lawn needs water.

The way you mow your lawn can also make a difference. You never want to remove more than one third of the total blade height when mowing, or you could chop off the food-producing parts of the grass blade and end up with a brown lawn instead of a green one. You should also leave grass clippings on the lawn to help recycle important lawn fertilizing nutrients.

Grass also acts like a natural air conditioner that cools the air as it releases water vapor through its blades. The water evaporates and draws heat, cooling the air in the process. As a result, lawns are a safer surface for children to play on and provide the cool comfort we desire on hot days. Those are selling points that can help any home sale.

Published with permission from RISMedia.

 

Heres how to design the perfect wine room…

 

Wherever you choose to store your wine, the key is to keep the space at 55 degrees Fahrenheit and about 70 percent humidity.

 

From traditional wooden to contemporary stainless steel racks, there are countless display styles to choose from.

 

You dont want your wine room to look empty, but youll also need space to make additions as you wait for each bottle to reach its peak.

A tasting area inside or near your wine room is a thoughtful feature that comes in handy when entertaining.

Published with permission from RISMedia.

Many people search for a new home without being realistic about all the expenses they could face. Before you start shopping for a house, sit down and figure out how much you can actually afford to spend and leave room in your budget for future changes in your circumstances.

Understand What Mortgage Pre-Approval Does and Doesnt Mean
Getting preapproved for a mortgage can help you demonstrate that you are serious about buying a house and that you can afford to do so. A lender will review your financial information and pre-approve you for an amount, but that is not necessarily the amount you should spend.

A lender may not include significant monthly expenses, such as healthcare and daycare, in its calculations. It also may not factor in savings for retirement, your childrens education and future vacations. Your budget needs to include all your priorities.

Consider All Costs Associated With Buying and Owning a Home
Plan for the numerous expenses you will have before you move into your new home. Closing costs typically total thousands of dollars. You should also factor in moving costs, plus new furniture, carpets, appliances and decorations. All those bills can quickly add up.

If you make a small down payment, you may need to purchase private mortgage insurance, which may cost hundreds of dollars per month. You also have to budget for homeowners insurance, property taxes and possibly homeowners association fees.

If you are currently living in an apartment or a small house and you plan to move to a larger home, your utility costs will most likely increase. You may be shocked when you start receiving much higher bills than youre accustomed to. Budget for higher utility costs so you wont have to stress about them after you move into your new home.

Homeowners are often shocked by the costs for maintenance, repairs and lawncare. Plan to set aside money in a savings account each month to cover those expenses so you dont panic when you receive a bill that you werent expecting or that is higher than you anticipated.

Think About How Your Life May Change
Your circumstances will likely change in the future. For example, you may decide to start a family or to have more children. You may have an elderly parent move in with you. You or your spouse may be laid off. One of you may be unable to work because of an illness or disability. While you cant know what the future will hold, recognize that things can and will change down the line. Leave some breathing room in your budget to deal with those changes when they come.

Dont Get in Over Your Head
Make a list of all the expenses that could be associated with buying and owning a house, as well as your current and future priorities, and figure out how much you could comfortably afford.

Published with permission from RISMedia.