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An adjustable-rate mortgage (ARM) starts out with a low interest rate for a set amount of time before periodically adjusting based on market conditions, making it an attractive option for borrowers who dont plan to stay in their home for a long period of time. Borrowers in this situation can lock in a low interest rate for the first several years and then move to another home before having to worry about the rate adjusting and their monthly payments skyrocketing.

But those who plan to stay in their home for an extended period of time often experience a shock when their interest rates reset”and their monthly payments jump. If you have an ARM, and affording your new monthly payments will be a stretch as the interest rate begins to fluctuate, you have options when it comes to refinancing your mortgage.

How an Adjustable-Rate Mortgage Works
An ARM has an adjustment period that refers to how frequently the rate will change. For example, with a one-year ARM, the interest rate will adjust once per year after the initial low interest rate expires. Lenders refer to several indexes to set their interest rates when ARMs adjust. Ask your lender which index it uses to set rates, and pay attention to how that index fluctuates over time. Your loan servicer should send you an estimate of what your new payment amount will be after the rate adjustment several months before the change occurs.

What to Do If You Cant Afford Your New Mortgage Payments
If higher monthly payments would leave you struggling to cover your mortgage and other bills, you might be able to refinance your loan. You could choose a fixed-rate mortgage or a hybrid ARM with a low introductory rate that would adjust later.

You might also be able to switch to a fixed-rate mortgage with a longer repayment period than your initial loan, which could give you lower monthly payments than you would have at the new rate with your ARM. If you decided to take out a 40-year fixed-rate mortgage, the interest rate would likely be a little higher than it would be with a 30-year fixed loan.

Another option is to take out a home equity loan, or second mortgage. Doing so could allow you to lower your interest rate and possibly shorten the term of the loan with little effect on your monthly payments.

Stay Calm and Explore Your Options
If your interest rate on an adjustable-rate mortgage has risen and your mortgage payments have jumped significantly, you may be feeling shocked and overwhelmed, but you have options that can help you avoid stretching your budget too thin. While working closely with your lender is critical when it comes to choosing the best mortgage for your situation, its also important to understand how an adjustable-rate mortgage works, and how and when the interest rate will reset.

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

Published with permission from RISMedia.

A house with a master suite is a dream for many. A large bedroom, private bathroom and other amenities can be an oasis for stressed-out homeowners to escape and relax. However, a master suite can also be expensive”and may or may not attract buyers in the future.

Features of a Master Suite
The term master suite can mean many different things. In some cases, it simply refers to a large bedroom with spacious walk-in closets and a large, attached, private bathroom. Master bathrooms are typically much more elaborate than typical bathrooms. Homeowners frequently choose showers with massaging jets, hot tubs, side-by-side sinks and more expensive wall and flooring materials than those generally used in bathrooms.

Some people use part of a master suite as an entertainment area with a large television, stereo system, video game consoles and other electronic devices. The options depend on the size and layout of the suite and a homeowners budget.

In some cases, owners prefer a master suite with a sitting area and a cozy fireplace. It can be the perfect place to relax on a cold, snowy day and watch TV or escape into a good book.

For other people, a master suite is seen as a more functional area. For example, the owners may set aside part of the space as a laundry room where they can take care of chores without worrying about children running in or leaving toys scattered about.

A portion of a master suite can even be used as a home office. A parent can have a private space to work without distractions, while at the same time being able to easily check on children and pets or handle chores in other parts of the house when necessary.

How a Master Suite Could Affect Home Values
A house with a master suite could cost significantly more than a house without one. Depending on the location of the home, a master suite may or may not help you get a good price if you decide to sell it later.

If most of the other houses in the neighborhood have master suites, buyers will most likely expect one. If you bought a house with a master suite that was smaller or less elaborate than that of a neighboring home, that might not matter to you now, but it could work against you later if you try to sell the house and prospective buyers are underwhelmed. On the other hand, if you customized your master suite in an ostentatious way that wouldnt appeal to most people, that could also limit the pool of potential buyers.

Talk to Your Real Estate Agent
If having privacy and some trappings of luxury are priorities for you, a master suite could be an excellent idea. Before you commit to a specific house, ask your real estate agent about other homes in the area to find out how the house you’re considering compares”and how the master suite might affect your ability to sell the house in the future.

Published with permission from RISMedia.

Exercise rooms have fast become an expected amenity for luxury homebuyers. Being able to stick to your daily fitness regimen or have a session with a private trainer without leaving your house is an extraordinary convenience. Besides, we dont all have time to get to the gym!

Some people hear the term home gym and picture a cavernous basement or garage with a set of weights. If youre looking to design an exercise room thats a cut above, here are a few tips to get started.

Locate the Space

Youll have to first pick out which part of the home can be transformed into your gym. In this case, the bigger the better, as youll appreciate having extra space to freely move around. Also consider the equipment required for your preferred type of exercise and how it can be accommodated.

Mind the Floors

Rubber flooring is typically the first choice if youre going to be weightlifting and potentially drop dumbbells on the floor. If thats not necessarily in store, however, hardwood floors are a more stylish option and you can always place small mats around the room to stretch or place equipment on.

Maximize Light

Ideally, youll have large windows and plenty of natural light, especially if you plan on using the space as a yoga or meditation studio. If youre going to put your exercise room in the basement, pay extra attention to lighting to ensure an optimal workout experience. Recessed or track lighting can be practical solutions for a well-lit workout area.

Mirrors Galore

Having full length mirrors are essential when working out and its not just so you can admire your physique. Mirrors allow you to observe your form and practice proper technique to avoid injuries. And, fine, maybe snap the occasional gym selfie!

Music Motivation

An audio system of some sort, be it built-in or portable Bluetooth, is a great way to get pumped up during each session. Or, if you prefer to get your news during your morning exercise routine, having a TV in your home gym is also a great option.

Published with permission from RISMedia.

Saving up for a down payment is perhaps the biggest hurdle to buying a home for many Americans, but how much money do you really need to put down in order to secure a deal?

By definition, a down payment is the amount of money a buyer spends up front to purchase a house. A buyer typically takes out a mortgage to pay the rest of the sale price before closing, and the size of a down payment can have a significant impact on which type of loan a lender is willing to offer.

A down payment is calculated as a percentage of a homes total purchase price. For example, if youre buying a $300,000 house, $15,000 would be a 5 percent down payment, whereas $60,000 would be 20 percent.

Conventional wisdom says homebuyers need to put down at least 20 percent to qualify for a mortgage, but putting that much down is no longer the norm. While 20 percent is a great goal with several benefits, many prospective buyers cant afford to pay such a large lump sum. If youre in the market for a home, consider the following to determine how much you should put down:

The Upsides of 20 Percent
Maybe youve saved up a lot over the years to buy your first home, or maybe youre a homeowner who can dedicate a major chunk of proceeds from a home sale toward your new down payment. Either way, youre in a great position.

Although you dont have to put 20 percent down to get a mortgage, a lender would consider you more financially stable and less risky if you did. Therefore, a lender wouldnt require you to pay private mortgage insurance and would likely offer you a lower interest rate”two big perks that could mean smaller monthly payments and save you thousands of dollars over your loan period.

Mortgage lenders arent the only ones who feel more confident in a buyer who can put down at least 20 percent. If a seller gets multiple offers on what might be your dream home, youre more likely to stand out among the competition if you bring a larger down payment to the negotiating table.

Going Below 20
If you cant make a 20 percent down payment, dont worry. Youre not alone. In fact, studies suggest the majority of buyers put less than 20 percent down on a new house, with some even paying below five percent. First-timers and buyers 35 and younger usually put down the least, as they tend to have lower incomes than older buyers.

Nonetheless, youll seem like a riskier borrower to lenders by putting down less than 20 percent. That means a lender will likely require you to buy mortgage insurance to protect the companys investment, and your loans interest rate is bound to be higher.

Although most private lenders welcome buyers who have small down payments, some government agencies also offer programs aimed at helping low- to moderate-income families buy homes. For example, a Federal Housing Administration-backed loan could accept a down payment of 3.5 percent, and the U.S. Department of Veterans Affairs offers loans with no money down. However, because such federal programs have strict eligibility requirements and may be subject to policy changes, consult a professional for further details.

Do Whats Best
The words down payment neednt scare you away from buying a home. When deciding how much to put down, consider your financial situation, loan options and goals. Like choosing a home you love, its important to choose a down payment thats right for you.

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

Published with permission from RISMedia.

Even though a burglary occursevery 20 secondsin the U.S., you can still protect yourself without installing top-dollar security features.

Home burglary generally has a pattern; criminals are looking for an easy target they can rob fast. Learn from the pros. Here are five tips from career burglars you can use to defend your home and prevent break-ins:

1. Nighttime Burglaries Arent the Best Time. Burglars like to break into homes during daytime hours”the last thing criminals want is to encounter someone at home. Weekdays are ideal for thieves, since weekend schedules are too unpredictable. Between 12:30 p.m. and 2:30 p.m. are themost popular timesbecause theres a high chance people will be away at work or school.

2. They Know When Youre Not Home”Thanks to Social Media. While its tempting to post about your vacation to your social media feed, wait to share those trip photos and exotic location check-ins until youre back home. Criminals scout public social media accounts on Twitter, Instagram and Facebook to find victims. Even if all your accounts are private, that old friend from high school could be a potential criminal. Never post what times youre not home or how long youll be out.

3. They Dont Like Your Security Practices. Burglars want nothing to do with alarm systems (whether theyre from thebest home security companiesor not). Homes without a security system are almost 300 percent more likely to be targeted for a break-in. If you do install an alarm system, make sure you guard it with a strong code. Dont use your house number or birthday, and clean any dirt or grease off your keypad so a burglar wont guess your code based off the numbers youve hit the most.Also, tricks that make it look like youre home really work. Motion sensor lights, TVs left on and cars parked in the driveway make burglars nervous and run from properties.

4. Shrubs and Architecture Make Great Hiding Spots. Tall bushes are favorites of burglars since they offer an obstructed view from the street and neighbors. Think twice about large architecture features, too, like fences, half walls and big fountains. Such dcor elements give a burglar more time to hide and plot their method of entry. The best defense is a clear view of your front porch.

5. Valuables in the Open Help Them Decide on a Target. Keep your expensive items out of sight. Youre making it too easy for a burglar by advertising the types of valuables they can steal. Dont leave a new laptop in front of your first-floor kitchen window, expensive jewelry on your living room coffee table, or even a nice car in a garage window with a clear sight line to the street. Key hooks”especially with labels for each key”need to be concealed out of view from windows, as well.

Source: Krystal Rogers-Nelson/RISMedias Housecall

Published with permission from RISMedia.