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Mortgage lenders typically want borrowers to put down 20 percent of the purchase price toward a home. For borrowers who do not have a lot of money for a down payment, it can be difficult to qualify for a mortgage. Some lenders approve mortgages with less money down, but those borrowers are considered a higher risk than those who put down 20 percent. Lenders often require borrowers with lower down payments to obtain private mortgage insurance (PMI). This is insurance provided by a private company that is designed to protect the lender if the borrower is unable to make the monthly mortgage payments.

When Is Private Mortgage Insurance Required?
If you obtain a mortgage through a conventional loan and put down less than 20 percent, the lender will likely require you to purchase PMI. It may also be required if you refinance your mortgage and you have less than 20 percent equity.

In some circumstances, you may be able to obtain a conventional loan with a low down payment that doesn’t require PMI. In that case, you will probably have to pay a higher interest rate. That option may or may not be more expensive than purchasing PMI. Talk to your lender about your specific circumstances and how much each scenario would cost. Also talk to a tax advisor about how paying for private mortgage insurance would affect your taxes and whether you might be better off accepting a higher interest rate to avoid paying for PMI.

If you do not have enough money for a 20 percent down payment, you may be able to qualify for an alternative type of loan, such as one through the Federal Housing Administration (FHA). Talk to your lender to find out how your down payment, credit score and other factors would affect your payments and whether that would be cheaper than obtaining a loan with PMI.

How Is PMI Paid?
Depending on the lender, you may have one or more options to pay for PMI. Some lenders charge monthly premiums that are added onto the cost of the mortgage. Others require a one-time premium paid at the time of closing, and some require both an upfront fee and monthly payments. Some lenders allow borrowers to choose the option that works best for them, while others offer only one method of payment.

Carefully Weigh Your Options
If you do not have enough money for a 20 percent down payment, you may still be able to obtain a mortgage, but you could have to pay extra for private mortgage insurance. Consider various options and talk to your lender about how much a variety of scenarios would cost you, both monthly and over the course of several years, to decide which type of loan and down payment amount are best for you.

Published with permission from RISMedia.

Before listing your home, improving curb appeal is a top priority. Luxury homebuyers want a turnkey residence that requires zero work before they move in and if your house is looking a little worse for wear from the street, they could be turned off before even stepping through the front door.

In order to get your home in tip-top shape, be prepared to show a little love to the exterior. Here are a few ways to add major curb appeal that will have potential buyers excited when they pull up to your property.

Landscape Design

Bringing in a professional landscape team to do their magic is always a good idea. Lush plantings and flower gardens, as well as neatly pruned hedges and trees, will instantly transform your front yard.

Stage the Front Porch

If you want prospective buyers to feel that the home is welcoming before they even get inside, staging the front porch is the way to do it. Potted plants and beautiful light fixtures will set the tone and, if space allows, a wooden bench or small seating area always feels inviting.

Tend the Exterior

Power washing the exterior and adding a fresh coat of paint or stain will have your home looking brand new in no time. Replacing the front door, or simply painting it a charming new color, can also do wonders. If your garage door is nothing special, upgrading it to a stylish, high-end model is another opportunity to set your home apart.

Welcoming Walkway

Dont make visitors trudge across your lawn. A thoughtfully designed stone or pebble path that meanders through your front yard is the perfect way to guide them from the curb to your porch.

Redo the Driveway

Often overlooked, a stately driveway can have prospective buyers impressed upon arrival. There are plenty of different options to explore depending on the style of your home, like cobblestone, pea gravel, or blue stone.

Published with permission from RISMedia.

Nothing says fun like a home bar. From intimate dinner parties to full-blown banquettes, it provides a space to gather and enjoy conversation. For luxury buyers who plan to frequently entertain friends and family, this is a lifestyle amenity that is worth getting excited over. If youre considering adding a watering hole to your home, here are a few tips to help design the perfect bar.

Identify the Details
First, youll have to determine where the home bar will work best. Pick a space that doesnt interrupt the flow when youre playing host and is large enough to meet your needs. Consider seating, storage, as well as equipment that will be needed, and try to incorporate it into or nearby your entertaining areas.

Get Inspired
Think about the atmosphere and dcor of your favorite bars or restaurants. Try to pinpoint what it is that you love about them or, next time youre there, make note of the ambience and how it can be replicated with your home bar.

Tailor to your tastes
The style of the bar should be both consistent with your homes aesthetic and a reflection of what you enjoy drinking. Is this going to be an Art Deco style bar where youre serving up Manhattans or will it be a rustic vibe with craft beers on tap? If youre an enthusiastic mixologist, make sure youll have all the accoutrement to shake, muddle, and stir the latest concoction.

Presentation
As the epicenter of entertainment, theres an element of showmanship that needs to be taken into account. Its all in the details, like a mirrored backsplash or moody lighting that sets the tone. There should be a sense of cohesion, from the finishes and the upholstery to the bottles being displayed and how the glasses are stored.

Published with permission from RISMedia.

Just as an umbrella can protect you from the rain, an umbrella insurance policy can shield you from lawsuits if something unfortunate happens at your home.

Homeowners insurance usually includes some liability coverage to protect your assets if someone is injured at your home. Umbrella policies can go beyond the $300,000 liability insurance that most insurers require of a homeowners policy, according to the Insurance Information Institute (III).

If your home or assets are worth more than $300,000, or if youre worried that someone might injure themselves on your front step and will sue you for over that amount, then an umbrella policy could be worthwhile. The potential loss of future income is another consideration, since your future wages could be garnished in a lawsuit.

A $1 million umbrella policy can cost $150 to $300 per year, according to III.

Here are some of the things an umbrella liability policy can protect you from:

• Swimming pool accidents
• Trampoline accidents
• Dog bites
• Bodily injury
• Property damage
• Landlord liability
• Vacant land (if an uninvited guest is injured on your property)
• Owning a home business that clients visit
• Construction on property
• Slander and libel
• Shock and mental anguish
• False arrest
• Malicious prosecution

A personal umbrella policy (PUP), protects your personal items and usually doesnt cover your business, even if it’s a home business”a separate umbrella policy would be needed in this instance.

Depending on the type of umbrella policy you buy, there are some things that aren’t typically covered. Your personal belongings that are damaged wont be covered, but someone else’s will be.

Other areas that wont be covered by umbrella insurance include floods, health insurance, intentional crimes and written or oral contracts.

Wealthier individuals may have more reason to get an umbrella policy because they have more assets to protect. But even a homeowner with a modest-priced home may want to get an umbrella policy if their basic homeowners insurance doesnt have much liability coverage.

Since a home is usually your largest asset, its important to insure it properly. If someone is injured on your property, for example, you dont want to be held liable for injuries and damages that could add up to more than the value of your home.

Published with permission from RISMedia.

With a variety of home surveillance kits available, many handy homeowners have chosen to install security cameras themselves. The installation process can be easy, but knowing the proper way to place and angle the cameras is vital to keeping your home as safe as it can be.

The most important factor in judging where to place a camera is simple: Your home is your home. You know what the layout is and where the most important rooms are. Before you begin placing any equipment, consider some basic questions about your home’s surveillance needs: What parts of your home are you most concerned about? Are there spots on your property that aren’t plainly visible to the street or neighbors? Do you need to keep any local camera placement laws in mind?

Consider the usual entry points for potential burglars when casing a home. With over 80 percent of burglars entering a home through the first floor, whether through doors or windows, it’s especially important to keep the entirety of your property’s entryways covered.At the same time, placing cameras in low areas”and, thus, in easy reach of criminals”may negate their usefulness.

If you find you have a lack of safe places to put a camera, consider looking into protective caging for your equipment to protect it from being knocked out of order or covered while you aren’t looking. This is also a good time to contemplate what special tools you may need to complete your installation, so ensure you read the camera systems instructions for its recommended outfitting requirements.

While losing a camera can mean losing important evidence to help identify vandals or thieves, there are clever ways to keep yourself safe that might goad a criminal into making a misstep. Placing a dummy camera in obvious sight not only deters crime by showing you keep your home under tight watch, but it also gives an easy target to potential burglars that can distract them from hidden cameras that catch them in the act. As an added bonus, dummy cameras are typically far cheaper to replace than professional models.

Most importantly, you must consider the needs of each camera when placing it. Cameras cannot focus on multiple ranges and angles at once, so if you want to catch a trespasser’s facial features, mounting your camera up too high can blur distinctive features, but a raised camera may have a better chance of picking up a car’s license plate when placed overlooking your driveway.

In the end, even poorly placed cameras will offer better home security than not having any at all, but there’s no reason to leave proper home security to chance. Knowing how to place your first line of defense can keep you safe before and after any crime, and knowledge is always your best weapon.

Published with permission from RISMedia.