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Refinancing your mortgage and switching to a shorter term might help you save money, but it doesnt work that way in all circumstances. For some homeowners, paying off a mortgage early can cost more or make it harder to achieve other financial goals.

Reasons to Consider Switching to a Shorter Term
A mortgage with a shorter term has a lower interest rate than a longer-term loan. Shortening the term of your mortgage would help you spend less on interest over the life of the loan and pay off the mortgage sooner.

Why Refinancing Might Not Be the Right Move
Shortening your loan term would increase your mortgage payments significantly. That could be a financial stretch, especially if your job isnt secure, your income varies or you are raising a family. Refinancing would also require you to pay closing costs.

If you need to save for retirement or for your childrens college education, it might be better to focus on those goals first. When it comes to saving for retirement and education, the earlier you start investing, the more you can benefit from compounded interest.

High-interest credit cards can eat up a large chunk of your monthly income and can take a long time to pay off. You might be better off tackling your credit card bills before refinancing your home loan.

Paying off your mortgage earlier could help you build equity, but those funds would be harder to access than money in a savings account. If making higher monthly mortgage payments would leave you without a readily accessible source of cash, refinancing might not be a good idea.

At the beginning of a mortgage repayment period, a large portion of each payment goes toward interest. Later, more money is used to reduce the principal. If youve been paying off your mortgage for several years and most of your payments now go toward principal, refinancing would set you back to the stage where most of your payments went toward interest. Depending on your specific circumstances, you might lose money overall.

Other Ways to Pay Off Your Mortgage Faster
If your current mortgage doesnt have a prepayment penalty, you could pay a little extra each month or make extra payments with money from a bonus, income tax refund or gift. Just be sure to instruct your loan servicer to apply the additional payments to your principal.

Should You Refinance?
Shortening the payback period and reducing the total amount of interest you will have to pay can be appealing, but those shouldnt necessarily be your top priorities. Depending on where you are in your repayment period, refinancing might not save you much money, or any at all. Increasing your monthly payments could also make it difficult to reach your other financial objectives. Think about all your goals and your overall financial situation to decide whether refinancing to a shorter loan term is the best move.

Published with permission from RISMedia.

Trees and bushes can beautify your yard, but they can cause problems if theyre too close to the house. Some species carry greater risks than others, but you should consider potential problems no matter which species youre thinking about planting.

Falling Debris
If trees are located next to the house, leaves, twigs and acorns can fall into the gutters, where they can cause clogs. Fallen branches can wind up on the roof and damage shingles or cause gutters to come loose or fall down. A storm can cause large branches to fall, which can result in broken windows, a partial or complete roof collapse, and injuries to the homes occupants.

Roots
The length of tree roots varies by species, but in many cases the spread of the roots is much greater than the height of the tree. Since the roots are underground, homeowners often have no idea how far they extend.

Roots can damage the foundation, which can result in cracked walls and uneven floors inside the house. Tree roots can also cause a sidewalk or driveway to heave, damage the septic system, and cause pipes to crack or burst, which can lead to major plumbing issues and leaks that can affect the foundation.

Moisture
Trees cause the amount of water in the soil to fluctuate, which can cause the soil to expand and contract. That can create pressure that can crack the foundation or cause it to shift.

Bushes and shrubs retain moisture. If theyre located too close to the house, moisture can cause the exterior of the home to deteriorate, whether its made of wood or vinyl siding or another material.

Insects
Moisture can attract insects, including termites. Even though termites usually feast on dead wood or building materials, they sometimes eat the roots of living trees and shrubs. If they find tasty plants near your house, when theyre done with them, theyll most likely move on to your home. In addition, trees that touch the roof of your house can provide an easy avenue for insects to enter the building.

Think Carefully About Where to Plant Trees and Bushes
Homeowners are often surprised by how much trees and shrubs grow and how they impact the house and other structures. If youre thinking about planting trees or bushes in your yard, consult an expert to find out how tall they may grow and how far their roots may extend so you can put them in places where theyll be unlikely to cause damage.

If you already have trees or shrubs near your house, have them trimmed regularly and be on the lookout for signs of plant-related problems. If you notice any of these issues, schedule a professional inspection.

Published with permission from RISMedia.

Maintaining your home requires more than your seasonal large maintenance projects. It also requires small day-to-day fixes to keep your home looking its best. Keep these handy items nearby for a quick fix whenever your home is in need.

Extra Paint
Whether you opt to have paint samples or just save your current wall paint, its always a good idea to keep extra paint around. Scuffs, small scratches and holes can be quickly repaired or covered with a small bit of matching paint. While yes, your paint will never dry exactly the same as your first application, it will still be the perfect solution for minor issues.

E6000 Glue
No mere super glue, E6000 is specifically formulated to handle your most intense gluing projects. With its praises sung by crafters and hardware stores alike, there is no doubt that this glue will come in handy. Said to be able to handle heavy materials like wood, metal and concrete. As well as an array of craft mediums, you will be grateful to have this at the ready the next time something chips or breaks and requires a hardy-but-simple fix.

Spackle and Putty Knife
For obvious reasons, this is a must-have for home repairs. Dont wait until you need it to buy it, however. Its a small item that can be easily stored for later. Small holes from furniture, nails and other issues can be easily repaired with a little spackling compound and a little extra paint. To save time and hassle, look for a spackle with primer already in the compound.

Everyday Tool Set
If you dont already have a set of tools, there are basic items you need to have for everyday repairs. A simple toolset can be purchased at nearly any store, but will do wonders for your home the next time a small issue arises.

Published with permission from RISMedia.

A purchase money loan can refer to a mortgage provided by a bank, credit union or mortgage company, or issued or guaranteed by a government agency. Usually, however, the term refers to a loan provided by the home seller.

Seller Financing
For homebuyers who dont meet a mortgage lenders requirements, obtaining financing through the seller may be an option. If the house is paid off, the seller and buyer can negotiate the terms of a purchase money loan, including the length, monthly payment, interest rate and down payment. A security instrument is usually recorded in public records in case a dispute arises.

A seller negotiating a purchase money loan may be more flexible than a financial institution would be. A seller may agree to an interest-only or less-than-interest loan with a balloon payment and may allow the buyer to make the down payment in installments. Since a buyer usually only seeks a purchase money loan as a last resort, the seller may charge a higher interest rate than a financial institution would or raise the purchase price.

Because theres no financial institution involved in the transaction, the parties can often close the deal faster than they otherwise would. Closing costs are usually lower with a purchase money loan than with a typical mortgage.

Sometimes a buyer uses a purchase money loan to take over the current owners mortgage. In that situation, the difference between the balance on the existing mortgage and the sale price is financed by the seller. The purchase money mortgage is considered a second mortgage and the original loan must be paid off first.

A seller may offer a purchase money loan to attract a buyer if there are more houses for sale than buyers or if the owner needs to sell quickly. A seller may get full list price or more and may pay lower taxes if the sale is completed in installments. The seller can also benefit from monthly income and a high interest rate.

In a land sale, the parties enter a lease-purchase agreement in which the seller gives the buyer equitable title and leases the property to the buyer. After the agreement has been fulfilled, the buyer receives the title and rental payments are credited toward the purchase price. The buyer can then obtain a loan to pay the seller.

Other Types of Purchase Money Loans
A conventional purchase money loan can be issued by a bank or mortgage lender. A lender may loan up to 20 percent of the sale price as a second mortgage to cover a shortfall if the amount approved for a first mortgage isnt enough to buy a desired house. The Federal Housing Administration and U.S. Department of Veterans Affairsoffer government-backed purchase money loans.

Many Ways to Buy a Home
You have numerous options to achieve your dream of homeownership. If things havent worked out with a conventional lender or government agency, financing a home purchase through the seller may be an avenue worth exploring.

Published with permission from RISMedia.

You probably consider your pet a member of your family, but a homeowners insurance company looks at it in terms of risk. Depending on the type of pet you have and the state where you live, it might be difficult to obtain homeowners insurance at affordable rates, or at all.

Obtaining Insurance Coverage for Dogs and Exotic Pets
Many homeowners insurance companies deny coverage for applicants with dogs based on the animals potential to cause injuries or property damage. Rather than evaluate individual dogs, companies often exclude entire breeds that are considered aggressive. An insurer may automatically deny coverage to an applicant who owns a dog that belongs to an excluded breed, regardless of whether it is a purebred or mixed-breed dog and whether it has ever attacked anyone.

Some homeowners insurance companies dont automatically exclude entire breeds, but rather evaluate the histories of specific dogs. Some states prohibit insurance companies from excluding entire dog breeds but allow insurers to charge high premiums for owners of those animals.

Homeowners insurance companies often exclude exotic pets, which may include ferrets and some reptiles and large mammals, such as snakes and tigers. If a company excludes your pet, you might be able to purchase a separate exotic pet insurance policy, but it will most likely carry high premiums.

What Homeowners Insurance Will and Wont Cover
If your pet is covered by your insurance and it injures someone not named on the policy, the insurance company will investigate the facts surrounding the incident. If the company finds you liable, your policy will cover medical bills, lost wages, pain and suffering and legal bills, up to your liability limits. If your dog bites or jumps on a member of your family and causes injuries or chews up your furniture, you will be responsible for associated costs.

Your insurance company wont necessarily cancel your policy if your dog bites someone, but it may decide not to renew your policy if your dog has bitten people more than once. If your homeowners insurance policy doesnt cover dog bites at all, you can get a separate dog liability policy, an umbrella policy that will cover damage or injuries caused by the dog, or an excess policy that will provide liability coverage beyond your homeowners policys limits.

Tell Your Insurance Company about Your Pet
Before you purchase a homeowners insurance policy, contact several companies to compare coverage and rates. If you have a dog or exotic pet, make sure you inform the insurance company. If the animal were to injure someone or cause property damage and you never told the insurer you owned it, you would be responsible for any related bills. If you decide to get a pet after you have obtained a homeowners insurance policy, contact the company to make sure the animal will be covered. If you dont notify the insurer about your pet and the company finds out, it may cancel your policy.

Published with permission from RISMedia.