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If youre someone who isnt happy with their current mortgage”whether its because you heard of someone having a better rate, you realized the payments are too large or you want to pay your home off quicker, then its probably time to look into a mortgage refinance.

Simply put, a mortgage refinance replaces your current home loan with a new one and can be done to reduce the interest rate, cut monthly payments or tap into their homes equity.

And you dont need to be years into a mortgage to refinance. If it makes sense financially, you can refinance at any time.

Still, there are some mistakes that those going through the process make. Here are some things to avoid.

Being Unprepared:
Once you get the ball rolling, dont stall. If your new lender gets in touch asking for information, dont waste time looking for documents and financial info”send it to them right away so everything goes smoothly. If youre busy at work or about to embark on a family vacation, wait until you have opportune time to get things started.

Jumping at the First Offer:
One of the reasons youre looking to refinance is because youre not happy. But even if the first lender that comes along offers you better rates, dont just say yes. Shop around for the best deal, and even check in with your current lender to see if they can do something to make your mortgage more appealing. They might be willing to work with you, saving you some paperwork and time.

 

Waiting too long:
If you hear about a good rate from a friend or see a special deal being promoted, do your due diligence but dont wait too long before making a decision. Try to get everything done in a couple of days and check out as many lenders as possible. You dont want rates to rise or something to change before you pull the trigger.

 

Not Thinking About Closing Costs:
During any refinance, keep in mind that youre likely to be responsible for new closing costs, including a loan application fee, appraisal fees, title fees and attorneys fees. Be sure you have this money on hand and make sure that these new fees dont impact the value you are getting overall from the refinance.

 

Adding on to Loan Term:
When refinancing, some homeowners decide to add to the number of years of their loan term, lowering their monthly payments but increasing the total amount of interest over time. Conversely, lowering the terms by five or 10 years can save you a lot, so if you want to change the years, make it lower.

By making smart decisions, your refinancing can be a smooth experience.

Published with permission from RISMedia.

The cold weather is here and that means your family is wearing their winter coats, along with gloves, hats and scarves. And all of that stuff takes up a lot of space.

In fact, those cozy items can make your coat closet unruly. Whereas a few light sweaters and jackets make a closet look useful and organized, big coats and other accessories make it look like a mess. And if your home is for sale, thats not good.

So, consider these ideas that can help make your coat closet more streamlined throughout the winter.

Clear it Out:
Start by taking everything out of the closet and find a home for anything that isnt part of your familys winter wear. If you keep photo albums, games, cameras, sports equipment, a vacuum cleaner and boxes in this closet, get rid of the things you dont need and find a different home for everything else. Put your spring and summer sweaters and jackets in storage.

Arrange the Coats Neatly:
Hang your familys coats in the closet. If there is room, you can keep a sweater or sweatshirt in there that you wear around the house. Place the coats in a way that looks organized, maybe from the biggest coat to the smallest or by color.

Put Your Shelf to Good Use:
Your closets shelf is the place for hats, scarves and gloves. Again, make everything look nice by giving each of these items its own area of the shelf. Scarves should be folded and organized by color. Your closet may also have hooks on the side, which are good for scarves as well. If your foyer has enough room, you can include a coat rack, but keep just a few things on it.

Shoes on the Floor:
Use the floor of your closet for footwear, especially boots. On snowy days, lay down a mat and make sure everyones boots are dry before putting them away. And before visitors come to your home, make sure your foyer and closet floor are dry.

A neat and clean coat closet showcases your storage space and is an indication that your home is well taken care of.

Published with permission from RISMedia.

Homeowners insurance can compensate you if your property is damaged or stolen, but its important to be familiar with the language insurers use. Many homeowners dont fully understand the coverage they have and are surprised when they file a claim and receive much less than they expected.

Whats the Difference Between Replacement Cost and Actual Cash Value?
If a homeowners insurance policy covers replacement cost, that means the insurer will give the homeowner enough money to replace an item that was damaged or stolen with a new one of the same model, or one close to it if the original model is unavailable. It doesnt matter if the person owned the item for years and it had experienced significant wear and tear.

If a policy covers actual cash value, it will pay the amount it would cost to replace the item with a new one, minus depreciation, which is calculated based on the age of the item, how much wear and tear it had experienced prior to being damaged or stolen, and whether it is obsolete. Some courts have interpreted actual cash value as the amount a person would be likely to receive if he or she sold the item.

Why Does This Matter?
Replacement cost coverage will restore you to the position you were in before your belongings were damaged or stolen, but actual cash value coverage wont give you enough money to replace lost property. That can put you in a difficult position, especially if your home was damaged by a storm or fire and you need to replace many expensive belongings. You might have to dip into your savings, use credit cards, borrow money, buy cheaper items of lesser quality or put off replacing things.

What If You Lose Something That Cant Be Replaced?
In some cases, you wont be able to replace a lost item with an identical one. When it comes to electronics, for example, technology is constantly improving. If the laptop you bought a few years ago is not on the market anymore, youll have to replace it with one thats similar and that the insurance company agrees is equivalent to the one you lost.

If you have unique items that cant be replaced, such as artwork or antiques, discuss them with your insurance company before you need to file a claim. You may have to get the items appraised and pay for a separate rider or floater to compensate you if those items are stolen or destroyed.

Choose the Right Insurance Policy
If you own a house, homeowners insurance is a necessity, but make sure you understand what youre buying. A policy that covers the actual cash value of lost items may have lower premiums, but it can leave you in a tough spot if you lose many expensive belongings and only receive a fraction of the money you need to replace them. Discuss the details before purchasing a policy, and contact your insurer if you have questions about existing coverage.

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

Published with permission from RISMedia.

If you own a house, you need homeowners insurance. With all the other expenses that come along with homeownership, it can be tempting to select the cheapest insurance policy you can find, but that could be a big mistake.

Home Repairs and Reconstruction
You may not be required to obtain enough homeowners insurance to cover the entire replacement value of your home, but that doesnt mean you should choose lower coverage limits just because you can. If your house were destroyed by a fire or a natural disaster, you might have to come up with tens of thousands of dollars for rebuilding expenses not covered by insurance.

After a natural disaster, the costs of building materials and labor can skyrocket. If your insurance policy caps the amount itll pay to repair or rebuild your house, the coverage may be inadequate. For additional premiums, you can purchase guaranteed replacement cost coverage, which will raise your coverage limits if construction costs rise following a disaster.

If you own an older home that doesnt comply with modern building codes, you can pay extra for insurance to cover costs to rebuild the house in a way that conforms with current building codes. You can also purchase inflation protection to raise your coverage to keep pace with increases in the costs of home construction.

Damaged or Destroyed Belongings
Some insurance policies cover the cost to replace stolen, damaged, or destroyed items with identical or comparable new ones, while other policies only cover the actual cash value, which takes depreciation into account. Actual cash value policies have lower premiums, but you may regret choosing that coverage to save money if you suffer a major loss and have to replace a lot of expensive possessions all at once.

Standard homeowners insurance policies limit which possessions are covered. If you have jewelry, furs, artwork or other expensive belongings, basic coverage may not provide enough protection. A floater will raise your coverage limits for an additional premium.

Covered Perils
Homeowners insurance policies cover damage caused by a limited list of perils. If your house is damaged by a non-covered peril, your policy wont cover repair and replacement costs. You can pay extra to purchase insurance coverage for flooding, earthquakes, strong winds or hail.

Damages That Exceed Liability Limits
An accident on your property that causes major injuries or death may result in a lawsuit seeking more than the liability limit of your homeowners insurance policy. Your other assets, including vehicles and savings and retirement accounts, could be seized, unless you have an umbrella policy to protect your other belongings.

Make the Right Decision
It can be tempting to get cut-rate homeowners insurance coverage, but you may regret it if you file a claim and only receive a fraction of the money you need”or none at all. Contact your insurance agent or individual companies to discuss your needs and to compare rates.

Published with permission from RISMedia.

When fall gets into full swing and the leaves begin turning vibrant shades of red, orange and yellow, you may be wishing you had some beautiful foliage outside your house. For a few weeks each year, this brilliant display of colors is always a highlight of the season that you can look forward to before winter begins. In general, adding a few trees to your property can increase curb appeal and privacy, as well as the value of your home. But if youre specifically looking to maximize the foliage, here are some of the best trees to plant in your yard.

Red Maple
The red maple is a perfect choice if you want shade in the summertime and vivid colors in the fall. Growing up to 100 feet tall, these towering trees can survive in a wide range of soil types, which is why theyre among the most abundant in North America. They also do particularly well in urban environments as long as theres enough space for their roots.

Quaking Aspen
As one of the most widely distributed trees on the continent, the Quaking Aspen can survive in a variety of climates. In fact, its bright yellow and gold leaves can be found from Canada, across the U.S. and as far south as Mexico. Frankly, theres nothing as striking as a grove of Aspens in the fall.

Dogwood
With lovely white blossoms in the spring and shades ranging from yellow to purple in the fall, the dogwood tree can add natural beauty to the exterior of your home all year round. While they typically only grow up to 30 feet tall, they have a particularly wide spread and will often attract birds.

Sweetgum
A champion of fall foliage with its deep, glossy leaves, the sweetgum tree can survive in warm temperate and subtropical climates. Growing over 100 feet in height, they are also regarded as an effective solution to controlling erosion or sheltering your home from excessive wind.

Published with permission from RISMedia.