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Homes cost a lot of money to maintain. But are you spending extra money unnecessarily on upkeep? Here are seven of the most expensive mistakes you could be making in your home:

1. Using Traditional Light Bulbs.If you still have incandescent light bulbs in your home, you could be throwing a lot of money away every month on inflated electric bills. Over its life span, an incandescent bulb can use almost $200 worth of electricity. A CFL will only use about $40 worth of electricity over the same time period. Even better is the LED bulb, which only uses around $30 per bulb. Think what replacing every light bulb in your home could do to your home’s bottom line!

2. Letting Faucets Leak.A leaky faucet that drips one drop per second can waste more than 3,000 gallons per year, which is enough water to take more than 180 showers. Some people live in areas where water is plentiful, but for others in areas plagued with drought, this could be costing a fortune. Fix or replace your leaky faucet, and save a ton on your water bill.

3. Using the Wrong Air Filter Size.We all sometimes forget to change out the air filters for our HVAC systems or accidentally buy the wrong size. But using the wrong filter or a dirty one can increase your power bill and cause expensive problems for your furnace down the road. Use the correct filters for your system, and set a reminder to change them after the recommended amount of time. You won’t regret it.

4. Not Customizing the Temperature.Invest in a customizable thermostat. If you’re away at the office all day, you can program your heater to shift down a few degrees while you’re gone and then shift back up shortly before you return home. Heating or cooling an empty home wastes a lot of money in energy costs.

5. Not Adjusting Air Vents Properly.Is one room in your home hot, while the others are cold? Oftentimes homeowners will crank up the air conditioning in the whole house to combat hot temperatures in one area. Instead, adjust air vents to direct the flow of air more evenly throughout your entire home. Professionals will come regulate this to ensure your entire home is receiving the same amount of air conditioning or heating.

6. Overwatering the Lawn.Many homeowners have their sprinkler systems programmed to come on in the early morning hours for optimum lawn health. This can become a problem, however, if you’re never around to see what you’re actually watering. A broken sprinkler head could be causing a fountain, or the trajectory of your sprinkler may be directed at a fence instead of your lawn. Periodically run your sprinklers during the day so you can see how theyre performing when you’re not around.

7. Ignoring Leaky Windows and Doors.Leaky windows and doors are great places for cold winds or hot air to enter your home. Many homeowners simply ignore them and crank up their heaters or AC. Caulk leaky windows and put rubber seal around doors to maintain your indoor climate.

Use these tips to cut maintenance costs on your home today.

Published with permission from RISMedia.

Homeowners insurance is an important financial safeguard to protect you, your home and other assets from potential disasters or accidents. Its also an added expense homeowners need to budget for. Depending on the size and location of your home, as well as which insurance provider you choose, policy prices can vary widely. To help you save money while maintaining quality coverage, the Insurance Information Institute offers the following tips:

Shop Around
To secure the best deal, do some comparison shopping by getting quotes from at least three insurance providers. Don’t consider price alone, though. Because you’d be dealing with a company after an accident or other emergency, test an insurers customer service while you’re shopping, and choose a company whose representatives take the time to address your questions and concerns.

Raise Your Deductible
A deductible is the amount of money youre responsible for paying toward an insured loss. The higher your deductible, the more money you can save on your premium; therefore, if you can pay above the minimum $500 or $1,000 deductible, for example, you may reduce the cost of your homeowners policy. If you live in a disaster-prone area, your insurance policy may have a separate deductible to cover major disasters, so take this into account when considering whether to raise your standard homeowners deductible.

Bundle Policies
Many companies that sell homeowners insurance also sell auto insurance and umbrella liability policies. If you buy two or more insurance policies from the same provider, you may be able to reduce your premium. To ensure you’re getting the best price, make certain any combined price from one insurer is lower than buying the coverages separately from different companies.

Make Home Improvements
If you live in a disaster-prone area, youll have more insurance options to choose from if you take certain preparedness steps, such as installing storm shutters and shatterproof glass or reinforcing your roof. Also consider modernizing your heating, plumbing and electrical systems to reduce the risk of fire and water damage. These precautions may prevent excessive damage and the related work and stress involved in rebuilding.

Ask About Discounts
Consult your insurance professional about available discounts, which vary from company to company and state to state. For example, most insurers provide discounts for home security devices, such as smoke detectors, dead-bolt locks or burglar alarms, but be aware that some of these measures aren’t cheap and not every system qualifies for a discount. You may also be eligible for a discount if youve been a long-term policyholder with the same company.

Review Coverage Annually
Review your home inventory and any upgrades to your house. Make sure your homeowners policy covers any major purchases or additions to your home, and also check that you’re not spending money for coverage you don’t need. For example, if an expensive piece of jewelry or painting is no longer worth what you paid for it, you’ll want to reduce or cancel that items floater insurance and pocket the difference.

Every dollar saved on your homeowners insurance policy is a dollar you can use elsewhere, but that doesnt mean you should skimp on protection. Use these tips and consult a professional to help ensure youll have proper coverage at the best price.

Published with permission from RISMedia.

A job loss can be devastating, especially if it happens unexpectedly and you dont have a lot of money saved and cant find another job right away. Aside from the anxiety associated with being out of work and trying to find a new job, theres typically an added level of concern when it comes to figuring out how to manage your mortgage so that you dont fall behind on your monthly payments.

Insurance Coverage Against Job Loss
If you have mortgage insurance, the policy might include coverage in case of unemployment. Depending on the terms of your policy, mortgage insurance might cover your loan payments, taxes and homeowners insurance premiums for a limited period of time. Review your policy or contact your insurance company to ask about coverage.

Options Available Through a Private Lender
If you think youll be unable to make your mortgage payments on time, or you can only pay a portion of whats due, contact your lender immediately. Explain your job loss and financial circumstances over the phone and in a hardship letter. The lender will appreciate that youre being honest and attempting to handle the situation responsibly. More often than not, theyll be willing to work with you by providing a range of options to keep you in your home.

Forbearance is one option your mortgage lender may offer you. Many major companies offer forbearance programs, which could allow you to lower your monthly payments for a period of time”or temporarily avoid payments altogether.

The lender might also suggest a mortgage modification that would permanently change the terms of your loan. A mortgage modification might add missed payments onto the loan balance so that they can be paid at the end of the repayment period, or it might adjust the interest rate or extend the length of the repayment period.

If your financial situation looks bleak, you might decide that you would be better off walking away from your home and renting an apartment or moving in with friends or family. In that case, your lender might agree to a short sale, in which you would sell the house and the lender would accept whatever amount was received, even if it was less than the balance owed on the mortgage.

Help From the Government
If your mortgage was obtained or guaranteed by a government agency, such as the Federal Housing Administration, Fannie Mae, Freddie Mac, the Department of Veterans Affairs, or the Department of Agriculture, you may qualify for a mortgage assistance program through the federal government. Terms vary depending on the agency involved and the homeowners situation.

Dont Panic
If youve recently lost your job, youre most likely worried about how youll cover your mortgage. That concern is understandable, but dont let fear overwhelm you. Many people have wound up in similar situations, and help is available. Contact your mortgage lender and the government to explore your options.

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

Published with permission from RISMedia.

Homeownership is a dream for many people, but some take on more debt than they should. If you’re thinking about buying a house, consider your income and current and potential expenses.

How Mortgage Lenders Decide How Much Applicants Can Afford
Lenders look at the total gross income of all individuals applying for a mortgage. This can include income from work, alimony, child support, disability benefits and Social Security.

Lenders typically allow borrowers to devote 28 percent of gross income to pay for a mortgage and associated costs, including taxes and insurance. Some lenders accept higher percentages. Where you live and your credit score will affect your interest rate, taxes and insurance premiums.

Lenders also consider applicants’ debt-to-income ratios. Debt can include loans, credit card balances, child support and other recurring monthly bills. Mortgage lenders generally want applicants to have a debt-to-income ratio at or below 36 percent of their monthly gross income.

The amount of a down payment affects the total amount borrowed. Many lenders require 20 percent, but some accept much lower down payments.

Don’t Borrow Too Much
A lender may approve you for a large mortgage because your situation looks good on paper, but that doesn’t necessarily mean you should borrow the full amount. You could face other expenses and lifestyle changes in the future.

Companies can lay off workers, restructure or go out of business at any time. Ask yourself if you would be able to find another job in your field with a comparable or higher salary in your area in a short period of time.

If you buy an older home or one that has not been well maintained, you might encounter a host of expensive problems. Appliances can break, a roof can leak, a foundation can crumble and pipes can burst. It would be better to borrow less than the lender approves you for and set aside money each month to cover repairs that will inevitably be needed.

If you have or plan to have children, consider all the potential expenses associated with raising and educating them. Even in the best of circumstances, raising kids is expensive. If a child has medical needs, you could face high bills and might be unable to continue working full-time. If you want to contribute to your children’s college education, factor that into your budget.

Don’t devote so much of your monthly income to your mortgage that you can’t afford to save for retirement. That could leave you with a big house that is paid off, but not enough money to cover food, medical expenses, maintenance and utilities when you are a senior citizen.

Proceed With Caution
When going through the exciting process of searching for a home, it’s easy to get carried away. You might fall in love with a house, but you need to keep a firm grip on reality. Consider possible future expenses and life changes and play it safe to avoid getting in over your head.

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

 

Published with permission from RISMedia.

Water conservation isnt only good for the environment; its also good for your bank account. According to the U.S. Environmental Protection Agency (EPA), easy-to-fix leaks in homes across the country waste a total of almost 1 trillion gallons of water every year. Furthermore, because the average leaky home wastes about 10,000 gallons annually, leaks could be costing you at least 10 percent more on your water bills”without you even knowing it.

Are pesky water leaks hiding in your home? To find out quickly, take the EPAs 10-minute challenge to search for common leaks using the agencys room-by-room checklist below:

BATHROOM
Toilets: Conduct a leak test by putting a few drops of food coloring in the toilet tank and letting it sit for 10 minutes. If color shows up in the bowl, you have a leak and might need to replace your toilet flapper. (Make sure to flush after the test to avoid staining the tank.)

Faucets: Listen for drips, and turn on the tap to check for water going the wrong direction.

Showerheads: Turn on the shower, and look for drips or stray sprays that can be stopped with pipe tape.

In the tub: Turn on the tub, then divert the water to the shower and see if theres still a lot of water coming from the tub spout; that could mean the tub spout diverter needs replacing.

Under the sink: Check for pooling water under pipes and rust around joints and edges.

LAUNDRY ROOM
Clothes washer: Check for pooling water, which could indicate a supply line leak.

KITCHEN
Faucet: Listen for drips, and tighten aerators or replace fixtures if necessary.

Sprayer: Check to make sure water is spraying smoothly, and clean openings as needed.

Under the sink: Check for pooling water under pipes and rust around joints and edges.

Appliances: Check for pooling water underneath dishwashers and refrigerators with ice makers, which could indicate a supply line leak.

BASEMENT/UTILITY ROOM
Water heater: Check beneath the tank for pooling water, rust or other signs of leakage.

THROUGHOUT THE HOUSE
Check for signs of moisture or mold on your walls, ceilings or floors. This could indicate that a pipe is causing trouble behind the scenes and requires the attention of a professional.

In addition to the 10-minute checklist, the EPA also suggests looking at your water bill. If a family of four uses over 12,000 gallons of water during a colder month, such as January or February, the house likely has a major leak problem. Compare your utility bills to see if theres a random jump in monthly water usage, as well.

Many household water leaks, such as running toilets or dripping faucets, are simple to fix. You can read a DIY book or watch an instructional video online, then take a quick trip to your local hardware store for supplies. Cracking down on leaks can help your community conserve water and, better yet, ensure your money isnt going down the drain.

Published with permission from RISMedia.