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When comparing loan offers from multiple lenders, it can be helpful to look at the Total Interest Percentage (TIP), which is the amount that you would pay in interest over the life of a loan.

Differences Between Interest Rate, APR and Total Interest Percentage
The interest rate is the annual cost of borrowing money to buy a house, but it doesnt reflect the total cost of a mortgage. The APR includes lender fees and other charges and indicates the total cost to borrow money over the term of the mortgage. The Total Interest Percentage, or TIP, doesnt take upfront fees into account, except prepaid interest, if you choose that.

The interest rate and annual percentage rate are based on a one-year period. The TIP is usually much larger since it reflects the amount of interest you would pay over the entire term of a loan.

The TIP can be found in your Loan Estimate or Closing Disclosure. The figure is calculated by adding up all scheduled interest payments and dividing by the amount borrowed to arrive at a percentage. For example, if you took out a mortgage for $200,000 and your interest payments over the life of the loan would total $100,000, the Total Interest Percentage would be 50 percent, since the sum of all the interest payments would be half of the amount borrowed.

How Important is TIP?
The TIP calculation assumes that you will keep a mortgage for the entire term and make all payments as scheduled. If youre planning to purchase a home and live there for the rest of your life, the TIP will be important. If youre comparing the terms of 30-year mortgages but you think youll probably sell your house much sooner than that, the TIP may not be as relevant to you.

Other factors could affect the total amount you would pay in interest. If you made extra payments toward the principal, you would pay off the loan sooner and pay less in interest. You might also refinance and get a lower interest rate.

If you requested a Loan Estimate for a mortgage with an adjustable rate, the TIP will be calculated based on current interest rates. The actual amount you would pay in interest and the actual TIP could vary significantly due to future rate changes.

Weigh All Factors When Comparing Loan Offers
When you request mortgage quotes, you will be given several pieces of information. If you plan to stay in a house long-term, the total amount you will pay in interest can be important to consider. If you only expect to live in a house for a relatively short amount of time, the TIP may not be as much of a factor for you. If you have any questions, talk to your real estate agent.

This article is intended for informational purposes only and should not be construed as professional advice.

Published with permission from RISMedia.

When its time to file your tax return, you want to avoid owing money, if possible. The federal government rewards homeowners who make some renewable energy upgrades with tax credits.

Resident Renewable Energy Tax Credit
This tax credit applies to solar, wind, geothermal and fuel-cell technology. Credits can be used to reduce your current or future taxes owed but are not refundable.

Solar, wind and geothermal technologies installed in a principal residence and/or a second home can qualify for tax credits. Solar panels must be used to generate electricity in the house. Solar-powered water heaters must be used in the home and at least half of the houses water-heating capacity must come from solar power. Wind turbines that generate up to 100 kilowatts of electricity to be used in the residence qualify for tax credits. Geothermal heat pumps are eligible if they meet ENERGY STAR guidelines set by the federal government.

Fuel cells that use a renewable resource and generate at least 0.5 kilowatts of power qualify for tax credits. They must be installed in a primary residence.

You can deduct 30 percent of the costs for equipment installed in 2017, 2018 or 2019. The costs of both equipment and installation are eligible. There is no limit to the tax credit for solar, wind and geothermal equipment. For fuel cells, the tax credit is limited to $500 per half-kilowatt of capacity. The value of the credits will go down to 26 percent for equipment installed in 2020 and 22 percent for equipment installed in 2021.

Nonbusiness Property Tax Credit
This tax credit has been extended through December 31, 2020. To figure out if you qualify, you need to understand two terms the IRS uses.

Qualified energy efficiency improvements include insulation; exterior doors, windows, and skylights; and some roofing materials. Residential energy property costs includes electric heat pumps; electric heat pump water heaters; central air conditioning systems; natural gas-, propane- or oil-fueled water heaters, furnaces and hot water boilers; stoves powered by biomass fuel; and advanced circulating fans for furnaces fueled by oil, propane or natural gas.

Check with the manufacturer to make sure equipment and materials meet standards set by the Department of Energy to qualify for tax credits. The maximum tax credit is 10 percent of the cost of qualified energy efficiency improvements and 100 percent of residential energy property costs. You can get up to $200 in credits for windows, up to $50 for a furnace circulating fan, up to $150 for a furnace or boiler and up to $300 for any other individual residential energy property cost. The maximum total you can claim in tax credits is $500 for all tax years from 2006 through the expiration of the credit.

Get Professional Tax Advice
These credits may help you reduce your tax burden. If you have questions about whether equipment you installed in your home qualifies, the amount you qualify for in tax credits or any other tax-related matters, consult an accountant.

Published with permission from RISMedia.

In the real estate world, its no secret that beautiful trees can completely transform a property. They can provide myriad benefits that improve your outdoor living space and can even help to lure a potential buyer. The catch? It literally takes years for them to reach their full potential. If you want to skip all the time, maintenance and pruning that comes with planting a tree, you may want to consider adding mature trees to your property. Following are just a few of the instant advantages you can expect when doing so.

Increased Property Value
Studies have shown that mature trees can increase a homes value by as much as 19 percent, so if youre planning to put your house on the market in the near future, that should be reason enough to do so. After all, trees add curb appeal that potential buyers are sure to notice right away and can make your home stand out from other properties.

Improve Your Outdoor Space
Depending on what youre looking for, mature trees can serve a variety of purposes. You can add instant privacy to your backyard by screening out the neighbors or create a shady canopy over your terrace that allows you to enjoy it at all hours during the summer. Additionally, trees can also improve your view and contribute to a peaceful atmosphere where the whole family can relax outside.

Environmentally Friendly
Planting mature trees around your property is an environmentally-friendly move for several reasons. For starters, theyll instantly help reduce your footprint by absorbing carbon and other pollutants in the environment. Additionally, by strategically placing a tree in the right location, it can even help to reduce your homes energy bill. Whether its providing shade to decrease your cooling costs in the summer or shielding your home from wind in the winter, you can use trees to help lower your energy consumption and protect the planet.

Published with permission from RISMedia.

Create the ideal outdoor kitchen by paying attention to these characteristics…

Figure Out the Features

The grill is the star, but a stove top, sink and refrigerator add tons of convenience.

Seating Matters

Consider two seating areas: one for casual hangouts and another for al fresco dinners.

Put a Roof Over It

Extend the roof from your house or string up a canvas shade sail. Youll be thankful for the shade when the temperatures soar!

Fire It Up

A fire pit is the perfect feature to gather around as the daylight fades away.

Turn on the Tunes

Speakers that can handle the elements will take your kitchen to the next level.

Published with permission from RISMedia.

Handling home improvements yourself can save you money, but it can also be dangerous. When tackling DIY projects, make sure you know what youre doing and follow safety procedures. If you arent confident that you can handle something yourself or dont have necessary safety equipment, hire a contractor.

Dress for the Job
Wear appropriate clothing, such as a long-sleeved shirt, long pants, work boots, goggles and gloves. Dont wear loose-fitting clothing that could get caught on something while you are working. If you have long hair, tie it back. If there is a chance that an object above your work area could fall, wear a hard hat.

Prepare Your Tools
Verify that the tools you need are in proper working order before you get started. Make sure blades and drill bits are sharp so you wont have to use extra force and wind up injuring yourself.

Before you use a tool, be sure that you know how to operate it. If you have any doubts, consult a reliable source. Read the owners manual, ask someone to show you or watch an online tutorial. Dont guess or try to figure it out on your own.

Work Safely
Place a ladder on a flat, sturdy and dry surface and ask someone to hold it for you. When working on a ladder, keep your weight centered. Dont lean too far to the side or climb on the top two rungs. Dont climb on a roof if it has a steep pitch or if it is raining, snowing or windy.

Working with electricity and gas can be extremely dangerous. Dont attempt those types of projects unless you know what youre doing. Before working on a circuit, turn off the power. If you need to work on gas pipes, apply a mixture of soap and water to connections first. If you see bubbles, that indicates that there is a gas leak.

If you need to use chemicals, read the instructions and warnings on the label. Ventilate the area and wear a mask when working with chemicals or working in dusty conditions. Dont combine chemicals because that could create toxic fumes.

If you need to move a heavy object, bend at your knees and lift with your legs to avoid straining your back. Ask someone to help you if necessary.

Keep the Work Area Clean
Pick up wood scraps, nails and other forms of trash and discard them. Sweep the floor from time to time to get rid of dust and debris. Keep tools in designated areas and make sure that cords dont get tangled up or strewn on the floor where they can create a tripping hazard.

Put Safety First
Only attempt home repairs or renovations if you know what youre doing. Conduct research or ask for help if you arent sure and keep a fire extinguisher and first aid kit nearby.

Published with permission from RISMedia.