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The mortgage process can be complicated if you jump in without any prior knowledge on home-buying and lending. The best tool you can arm yourself with is an understanding of how your mortgage interest rate is calculated.

Credit Can Make or Break You

Your credit score will determine how reliable you are in the lending world. The higher your score, the lower your interest rate will likely be. Check your credit on one of the three major credit reporting agency sites”TransUnion, Experian and Equifax”or your credit card company may have a free credit report service (although these aren’t as reliable). Take steps to improve your FICO score for a better chance at a lower interest rate.

Size and Location Matter

State or County: Even your place of residence can affect your interest rate.

Mortgage Lenders: Shop around with multiple lenders, including local ones. Interest rates can vary from company to company, even if they’re located in the same town.

Loan Size: The size of your home can also impact your interest rate. The bigger the loan, the higher your interest rate will be if you’re not putting more money down.

Down Payment Size: Your mortgage interest rate may also depend on how much you’re putting down and if your loan includes closing costs and private mortgage insurance (PMI). Putting down less than 20 percent can increase your risk factor and may require PMI, but your interest rate may be lower depending on the loan.

Not All Loans Are Created Equal

Loan Length: Your loan term plays a bigger role in interest rate calculations than you think. Have you decided whether you want to pay off your loan in 15 or 30 years? You may pay more per month with a shorter term, but you’ll be paying less interest over the life of your loan. Short-term loans may also have a smaller interest rate.

Fixed or Adjustable: You’ll also have to consider whether a fixed- or adjustable-rate loan is right for you. Your interest rate can change over time if you choose an adjustable-rate loan. It typically starts off lower than with a fixed-rate loan, but will likely increase depending on market conditions.

Loan Type: Interest rates can also vary according to your loan type. Choosing a loan can be overwhelming, but talking to multiple lenders can help you understand your best options. Some of the more popular loans are conventional, Federal Housing Administration (FHA) and Department of Veterans Affairs (VA) loans. While FHA loans have less down payment restrictions and a smaller interest rate, your monthly payment can be more expensive due to the required PMI added on. VA loans can have smaller interest rates and don’t require PMI like FHA ones do. Although conventional loans may have higher interest rates, they are widely accepted in the real estate industry as dependable.

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

Source: Consumer Financial Protection Bureau

Published with permission from RISMedia.

Here are three ways that you can upgrade your homes interior design without leaving the house.

Digital Design Services

Interior design firms are going digital with their services by video conferencing with clients.

Online Classes

If youre more of a DIYer, then perhaps this is an ideal opportunity to enroll in that interior design class you never had time for.

Put Your Eye to the Test

Try experimenting with different looks by moving artwork or changing the flow by rearranging furniture.

Published with permission from RISMedia.

Published with permission from RISMedia.

Exposure to varying weather conditions can cause a wood deck to look gray and worn. Fortunately, wood is resilient.

Get Rid of Loose Debris

Start by sweeping the deck to remove dirt, leaves, twigs, acorns and any other debris. Then use a power washer to get rid of any tough stains.

Clean the Wood

If your deck has visible stains, a deck cleaning solution can eliminate them and help restore the wood. Use a mop or push broom to spread the cleaning solution evenly across the deck. Rinse, then let the deck dry thoroughly.

Re-Stain the Wood

Give it a fresh coat of stain to protect the wood from moisture. Spread the stain evenly and let it dry. Apply another coat of stain if necessary.

Get Your Deck in Shape for Summer

Exposure to rain, snow and ice can leave a deck looking worse for wear, but restoring it is easier than you may think. Take some time now to tackle that project.

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.