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Homeowners often use their equity as a resource when they need to finance home improvements, a childs college education or another major expense. Before you tap into your home equity, consider the possible effect on your private mortgage insurance (PMI) requirements.

What Is Private Mortgage Insurance?
If a homebuyer puts down less than 20 percent of the purchase price, a lender considers the loan risky. Most conventional lenders therefore require a borrower who puts down less than 20 percent to obtain PMI so the lender will be compensated if the borrower defaults on the loan. A borrower must continue to pay the premiums until reaching 20 percent equity.

How Can Borrowing Against Home Equity Affect PMI?
Premiums for PMI are based on your loan-to-value (LTV) ratio. If you currently have less than 20 percent equity and pay for PMI, you may be able to obtain a home equity loan, but thatll increase your LTV ratio and, thus, your PMI premiums.

If you take out a home equity loan before you reach 20 percent equity, you may reach that goal much later than you wouldve without the home equity loan, and youll have to continue to pay for PMI in the meantime. Depending on the amount youre currently paying for PMI, the amount youd pay for PMI after taking out a home equity loan, and the interest rates on your mortgage and home equity loan, the additional cost might not make a home equity loan a good idea.

If you have more than 20 percent equity now, you arent paying for PMI. If you take out a home equity loan that causes your LTV ratio to rise above 80 percent, however, your home equity lender and your primary mortgage lender may both require you to purchase PMI.

Should You Take out a Home Equity Loan?
A home equity loan can be a useful tool to pay for large expenses, but you should think things over carefully. If youre currently paying for PMI, a home equity loan could raise your PMI premiums substantially, and you could be on the hook for PMI payments for a much longer period of time than you would if you didnt tap into your home equity. If youve been working for years to pay down your mortgage and the combination of your existing mortgage and a new home equity loan would cause your equity to fall below 20 percent, you could have to deal with the additional expense of PMI, on top of mortgage and home equity loan payments.

Talk to your lender about your current LTV ratio and how a home equity loan would affect your PMI obligations. If your monthly costs would rise significantly, you might be better off postponing a large purchase or exploring other financing options.

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

Published with permission from RISMedia.

Home is where you spend a great deal of time. You want it to be both smart and comfortable, and to reflect your personal style. But finding the right interior designer isnt always easy, especially if you want someone who will work with you to bring your vision to life.

Spend some time flipping through magazines for design ideas that inspire you”then look for a designer in much the same way as youd look for any other contractor; ask friends for referrals and review their portfolios, and/or call a design school for a list of talented graduates. A qualified interior designer will most likely have a graduate degree in interior design, certification by the Council for Interior Design Qualification, and/or membership in the American Society of Interior Design (ASID).

Then, interview your top three candidates:

Begin by setting your expectations. What do you want to accomplish? Do you want to be consulted with every choice, or will the designer have some latitude?

What visuals will he or she provide before the work begins“sketches and drawings, a sample board of colors, finishes, swatches?

Whats the best way for the two of you to communicate? How soon will calls or texts be returned?

How will bills, purchase orders and payments be handled? Is he or she comfortable working within a budget?

Most important, how do you feel you will get along with this person? Do you feel he is likely to listen and respect your ideas, or go off on his own tangent? If she isnt asking questions now”if she doesnt seem truly vested in your ideas”how likely is it that she will listen later?

Like a hair stylist or a personal trainer, a designer should be a good fit. If all goes right, you may have found one who will follow you not just through years of moves or redesigns, but with second or vacation homes and other projects, as well.

Published with permission from RISMedia.

Is it time to revamp your homes outdoor living situation? Whether you need to stage the backyard for prospective buyers or simply replace outdoor furniture thats seen one too many seasons, there are plenty of decor options for breathing new life into your backyard. Here are a few ideas to get you well on your way to a stunning living area in the open air:

Suspended Chairs
If you have a veranda or covered terrace, suspended chairs that hang from the ceiling are far from ordinary patio furniture and will add a touch of flair. Just imagine curling up with a good book and gently swaying in the breeze all day long during the summer.

Luxurious Daybeds
When all you want to do is lie out in the sun and laze the day away, nothing beats a daybed in your backyard. Put it by the pool, next to the firepit, or under the shade of a tree, because wherever it goes, youre guaranteed to enjoy the pinnacle of leisure time.

Outdoor Bar Cart
Who wants to run all the way to the kitchen to fix a drink when the sun starts to set? A bar cart is a great solution for effortlessly serving refreshments al fresco during backyard parties. You can stock it up with juice for the kids or keep all the essential accoutrements for mixing your favorite cocktail at the end of the day.

Spacious Sectionals
For those who need ample seating to accommodate friends and family, a sectional is the perfect way to bring indoor comforts into your backyard. A must-have item for outdoor entertaining, everyone can gather around and enjoy the fresh air while spending time together.

Mesmerizing Lanterns
After the sun goes down, you can set the mood with chic lanterns that provide a warm glow. Ideal for intimate dinner parties or quiet evenings on the terrace, the flickering flame of a gas lantern is a sophisticated and stylish lighting solution thats sure to make your backyard a memorable setting.

Published with permission from RISMedia.

A fence can keep your children and pets safe in your yard, shield your family and guests from the prying eyes of neighbors, and protect your property from damage caused by trespassers or animals. Choose the right fencing material based on your security and privacy needs and budget.

Compare Fencing Materials
Wood fencing is the most popular choice because of its attractive appearance and the amount of privacy it affords. Wood species vary in terms of their resistance to decay and insects. The cost will depend on the height and length of the fence. It can take a significant amount of time to install a large wood fence, but if you choose quality wood, it may last as long as your house.

Vinyl or PVC fencing is made from plastic fashioned into panels and is much stronger and more flexible than wood fencing. Vinyl is easy to maintain, and stains can be removed with just soap and water. A vinyl fence lasts a long time, making it an excellent value. Vinyl fencing should be installed by a professional because, if its off by even a little, itll be noticeable.

Composite fencing is made from a combination of recycled wood and recycled plastic and can be cleaned with just water. Composite fencing should be installed by a professional.

A chain link fence is inexpensive and requires minimal maintenance. It doesnt offer as much privacy as other fences because of the large gaps between links, but its strong enough to meet most homeowners security needs. Chain link fencing is economical if you need to enclose a large area, and you may also be able to save money by installing it yourself.

Aluminum fencing is easy to maintain, requiring only painting after installation. It can resemble other fencing materials and resists rust. Aluminum fencing doesnt provide as much security as some other types of fencing, so its not the best option if you have a large dog that you need to keep confined.

Wrought iron fencing is stylish and expensive, since it needs to be custom-made. Wrought iron is strong, but it requires a lot of maintenance, including regular sanding and repainting to prevent rust.

Choose the Best Fence and Follow Local Rules
When choosing a fence for your yard, think carefully about your needs, priorities, time available for maintenance and budget. Before you install a fence, check your local zoning laws and homeowners association rules, if applicable. If you want to install a fence on the property line, make sure you know exactly where it is and have your property surveyed, if necessary, so you dont put up a fence and have to move it later.

Published with permission from RISMedia.

So you’ve decided to make the big move, and now it’s time to put everything in boxes. First you think big-picture (furniture), and then you think small-picture and realize you own much more than you ever imaged. Packing can be a daunting task, but with some extra legwork at the beginning, your unpacking can become a walk in the park.

Labeling Hacks
The worst thing about packing is that once all the boxes are in the truck, there’s no remembering what went where. There are several techniques you can put in place, like numbering your boxes to make sure none go missing, indicating which room the boxes are supposed to go to, or color-coding them to indicate their contents”anything that helps you identify the contents and the destination of your boxes is a go.

Practicality
Make sure that every box is packed as efficiently as possible. For example, plates are better off stacked vertically, and make sure heavy objects like books are packed in something with handles. As for all your baskets and suitcases? Put them all to good use by turning them into more packing boxes. Label cords, or take pictures of the cord setup to make sure you remember what goes where. Pack highly fragile or valuable items to take with you, and make sure to have a bag prepared with all of the things you will need upon arrival. (Don’t leave your shampoo in one of the countless moving boxes!)

Movers vs. Friends
While it is a great money-saver to have your friends help you pack up everything, if you have many valuables, it might be a better option to go ahead and pay the movers. A lot of moving companies are liable for anything that is broken or damaged, so you’ll be able to get reimbursed if anything gets damaged. And while your friends may commit to helping you, emergencies or other eventualities may result in a moving day no-show. A moving company will always have back-up, even if your originally scheduled movers call in sick.

Get in the Right Mentality
Moving has everything to do with being in the right mindset. To achieve that, you first have to make sure you get a good night’s rest. Once you’re well rested, make the commitment to move everything out in one day. Know that loading the truck will take longer than you anticipated, and that things will not pan out exactly as you planned them. Instead, be ready to think creatively as situations arise. Find comfort in the thought that once this day is over, you will be moved into your new house!

Published with permission from RISMedia.