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Owing more money on your mortgage loan than your home is worth”commonly referred to as being underwater on a home mortgage”can seem hopeless.

There were 6.7 million underwater homes in the U.S. at the end of the first quarter of 2016, representing 12 percent of all properties with a mortgage, according to RealtyTrac. The numbers are dropping since a peak of 12.8 million homes in 2012, when 28 percent of all properties with a mortgage were underwater.

For people still underwater, those numbers dont offer much solace. However, there are some options for underwater homeowners, including:

Short sale: If you have to sell your home, a short sale may get you the most money. Your lender has to agree to let you sell it for less than you owe, which may lead to the home being sold quicker than it would otherwise.

Your lender must agree to the lower price, and it will take the loss, and your credit score will fall. Lenders can also reject short sale offers on your home, causing the deal to fall through.

Refi: Refinancing your home loan wont increase the homes value and may still leave you underwater, but youll have a lower interest rate and a lower monthly mortgage payment.

It can be almost impossible to refinance with negative equity. The federal governments Home Affordable Refinance Program, or HARP, helps by giving lenders incentives to help underwater homeowners. Loans can be refinanced at 105 percent to 125 percent of a homes value.

To be eligible for HARP, the loan must be owned or guaranteed by Fannie Mae or Freddie Mac, and the borrower must be current on mortgage payments, having not missed a payment during the past 12 months. If you dont have a good credit score or high enough income, you could be denied for HARP.

Another option is the federal Home Affordable Modification Program, or HAMP. A financial hardship that puts the mortgage in default must be shown. This isnt a refinancing option, but a way to change the contract terms to lower your payments for up to 60 months.

Walk away: If you dont think your homes value will ever come back, you can walk away from your home by no longer making monthly payments and defaulting on the loan”called a strategic default.

Some consider this unethical, and the foreclosure that will eventually occur will hurt your credit score and stay on your credit report for seven years.

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If youre buying a home, you’ll more than likely be obtaining a mortgage, which you may not know much about. In fact, unless youve been involved in a home sale before, there are many things you will be learning about for the first time.

Here is a handy list of some of the key terms that every person involved in a real estate transaction should understand.

Appraisal:The written analysis of the estimated value of a property, as prepared by a qualified appraiser, which often determines if you will qualify for the loan.

Closing:One of the last steps of any sale. This is the meeting where the lender, buyer and seller complete the sale and mortgage process. Once the home closes, the home officially belongs to the new buyer.

Closing costs:This term refers to the money paid at closing to the lender and consists of a loan origination fee, points, appraisal fee, title search and insurance, survey, taxes, deed recording fee, credit report charge and other costs assessed at settlement. Closing costs usually average between 2 – 6 percent of the total mortgage amount.

Credit report:Simply a report of your credit history that a lender will use to determine if you are a good risk for a loan.

Interest-only mortgage: A loan whereby you only pay the interest portion of the mortgage payment each month.

Interest rate:The annual interest on a loan. The lower your interest rate, the lower your monthly payment will be.

Lock-in:The lenders guarantee that you will be granted a certain interest rate for a specific time period, such as 30 days before closing.

Origination fee:The fee charged by a lender for processing a loan.

Points:The amount that can be paid to a lender to lower the interest rate on your loan at closing. Each point is equal to 1 percent of the loan amount.

Private mortgage insurance (PMI):For those buyers who put less than 20 percent down on a home, lenders will require you to take out PMI, which is then added to your monthly mortgage payment. This protects the lender in the event that you default on the loan.

Title:The home document that proves ownership of the property.

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Having good credit wont get you a mortgage by itself, but it definitely helps. A good credit score can result in a lower interest rate and better loan terms, while poor credit can lead to a higher interest rate for a mortgage.

But its not impossible to obtain a home loan if you have poor credit and are working to improve it. Here are some options:

Wait a Few Months

Work on improving your credit score for a few months, and then try to get a home loan. The wait may be worth it and could boost your credit score just enough to qualify for a loan.

There are several ways to improve a credit score. Reducing debt is the best way, so do all you can to pay off your credit card bills. If you have a history of late payments, or just a few of them, stop that bad habit and start paying all of your bills on time.

Also, check your credit reports for errors and fix them, and dont apply for new credit cards when shopping for a home loan.

FHA Loan

A loan backed by the Fair Housing Administration (FHA) is usually the easiest type of mortgage loan to qualify for.

Its aimed at first-time homebuyers and requires a low down payment of 3.5 percent for people with credit that isnt very high. Borrowers with credit scores as low as 500 can qualify for FHA loans.

However, FHA loans do have an additional expense”you’re required to purchase mortgage insurance. This protects the lender if you default on the loan.

Are You a Veteran?

A Veterans Affairs mortgage, or VA loan, is a low-cost home loan for veterans. It doesnt require a down payment in most cases, has lower rates than conventional loans, and doesnt require paying a monthly mortgage insurance premium, among other benefits.

Most VA-approved lenders require a credit score of at least 620, according to the Veterans United Network.

Have a Higher Down Payment

The interest rate a lender offers on a mortgage is partly based on risk. A poor credit score can mean youre a higher risk for not repaying the loan than someone with a high score.

To offset some of that risk and qualify for a lower interest rate, you can make a higher down payment. Putting 20 percent down instead of 5 percent may get you a better rate on a loan.

Whatever loan option you choose for a home purchase when trying to improve your credit, you should continue working to boost your credit score after buying a home. When it gets high enough, it may be worthwhile to refinance your home loan.

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A mortgage payment can easily be the biggest bill in a monthly budget. Coming up with that money can be easy in some months and more difficult in others. Turning those difficult months into easier ones is possible with a few tactics.

Here are five hacks to help make paying your mortgage a little easier each month:

Get a side job
Just earning $500 extra a month ” or $125 per week ” can make paying a mortgage easier. To do this, get a side job for one or two hours per day at a gig you enjoy.

Consider dog walking, house sitting, driving for Uber, delivering meals or teaching a class at your local community center. Set each paycheck aside for your mortgage bill.

Rent out a room
There are several options for renting a room and making some money on the side. You can be a full-time, live-in landlord and rent out a room to a tenant by the month.

Airbnb allows users to rent rooms on their schedule ” one day at a time, a weekend, week or longer. Or rent your entire house for a few weeks while youre away on vacation.

Rent or sell your stuff
From your car, bike, surfboard and other gear, you can make some extra money by renting out your stuff when its idle.

If you want to get rid of something youre not using, then sell your unused books, bike, clothes, furniture and tools, among many other things, on sites such as eBay, Craigslist, Amazon and used book websites.

Use a work bonus or tax refund
A bonus at work or a tax refund can seem like found money, and its easy to spend it on a splurge such as a vacation.

Another use it to put it toward your mortgage for a month, saving you a payment and giving you a month of relaxing by not having to pull money from your regular budget to make a house payment. It can free up your other funds to invest or put aside in an emergency fund for a rainy day.

Pay down the principal
The above tips are meant to help you come up with some extra money so that your monthly mortgage payment is easier. While that can be good in the short term, you can also use the extra money to reach the long-term goal of paying off your home loan earlier. If your loan doesnt have a penalty for prepayment, then add to what you pay each month to your mortgage bill, and be sure to specify that the extra amount goes toward the principal.

It will help you pay off your mortgage faster and will save you thousands of dollars in interest over the life of the loan.

Hope you found these tips helpful! Contact me for more insights and info.

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Air quality has a direct impact on our health, both in and outside of our homes. While much is being done to improve the air outdoors, maintaining a healthy level of air quality inside is evenly important.

A range of triggers can lower indoor air quality, including carpets, chemical cleaners, heat sources and humidity. Build-up of these pollutants may result in Sick House Syndrome, which poses health risks to residents if not addressed. Airborne lead particles and radon are especially harmful.

Opening windows can significantlyimprove the quality of the air in the home, but in many households, doing so is just one of several necessary steps. A checklist:

1. Clean your home frequently, preferably with natural or non-toxic cleaners, a HEPA-filter vacuum and a mop. Regular cleaning eliminates dust, which could be contaminated withlead if the home was built prior to 1978.
2. Aim for less than 50 percent humidity inside the home; a higher percentage can lead to mold. A hygrometer can help determine the humidity level. Use an exhaust fan while bathing, cooking or using the dishwasher. Invest in a dehumidifier, if necessary.
3. Take care not to disturb lead-painted surfaces, especially if remodeling the home. If the paint is peeling, consult a lead removal specialist as soon as possible.
4. Test for radon. Most hardware stores carry do-it-yourself testing kits, and some utility companies offer the service free of charge. A qualified professional can conduct a longer-term test to determine radon levels at varying times throughout the year. He or she may recommend installing a radon mitigation system.
5. Dispose of paint, gasoline or any other chemicals at a certified hazardous waste disposal center. Visit search.earth911.com to locate a local facility. For future paint projects, purchase products labeled low VOC.
6. Replace the furnace filter every three months to reduce the amount of airborne dust circulating through the home.
7. Remove wall-to-wall carpeting, if possible”it traps particles that can exacerbate allergy and asthma symptoms, and may even contain formaldehyde, depending on the manufacturer. (Pressed wood materials, such as cabinets and furniture, may also release formaldehyde.)
8. Place plants where possible. House plants filter out airborne toxins, including ammonia and benzene, that can be detrimental to health. To reap the most benefits, use these NASA-approved species.
9. Remove shoes when entering the home, and place a floor mat at each entrance to deter any pollutants tracked in by guests. Dirt and pesticides brought in from outside can become airborne inside the home.
10. Insist the home remain smoke-free, if possible. Secondhand cigarette smoke, which lingers long after the smoker leaves, can have devastating effects on members of the household, including children and pets.

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