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Often, those looking to purchase an additional home get confused between a second home and an investment property. However, the two are not interchangeable ” especially when it comes to their financing.

Second Home, Defined
A second home is real property that the homeownerintends to occupy in addition to their primary residence for part of the year. Usually, second homes are used as vacation homes. Second homes may also be properties that the homeowner visits on a regular basis.

Examples of second homes may include:

A condo in a city where you frequently conduct business
A beach house that you and your family occupy during the summer months
A house in a different state where you have seasonal work

Getting a Mortgage
If you can’t purchase a second home out-right, you’re going to go the traditional route and look into obtaining a mortgage. In order to qualify for a second-home loan, the property is usually required to be located in a resort or vacation area (like the beach or mountains), or be a certain distance from the borrowers primary residence.

Understanding Interest Rates
Most lenders consider second homes to be more of a risk than primary residences, but not as big a risk as investment properties. Typically, interest rates will show this; second-home mortgages may have lower interest rates than investment property loans, but not necessarily. It can all depend on the borrowers entire financial picture.

Understanding Rules
Second-home loans often include a second-home rider along with the mortgage. This rider states certain rules the borrower must abide by in order to qualify for the loan.

These rules often include the following:

The borrower will occupy and use the property as his/her second home
The property will be kept available for the borrowers exclusive use and enjoyment at all times
The property cannot be used as a timeshare or be subject to any rental pool arrangement
The property cannot be subject to any agreements that require the borrower to rent the property or give a management firm (or anyone else) control over the use and/or occupancy of the property.

Published with permission from RISMedia.

More and more people are looking for ways to increase their home’s energy efficiency”both to conserve energy for the good of our environment and to lower energy costs. The good news, environmentalists tell us, is that there are many ways to accomplish both goals without spending a great deal of money.

From a panel of national energy experts, here are proven ways to do your part:

Unplug appliances. Coffee makers and other kitchen appliances, and even your cellphone charger, draw energy even when not in use. Make it a habit to unplug them after use.

Caulk and weather strip. Properly caulked windows and doors help keep outdoor air from seeping into your home, increasing the overall efficiency of your heating and air conditioning systems. Materials are inexpensive and replacement doesn’t take a lot of time, so check for drafts and replace as needed.

Add insulation. Especially in older homes, adding insulation to the inside of your attic is well worth the minor investment in terms of efficiency and energy cost.

Lower the water temp. A water heater set higher than 120 degrees Fahrenheit wastes a lot of energy and creates a burn hazard for children. So while it might take a few extra minutes to get your kitchen faucet water really hot, it will be worth the savings to lower your thermostat.

Replace incandescent lights. The average household spends 11 percent of its energy budget on lighting. Traditional incandescent lights convert only about 10 percent of the energy they consume into light, while the rest becomes heat. New lighting technologies, such as light-emitting diodes (LEDs) and compact fluorescent lamps (CFLs), can reduce the energy use required by lighting by 50 – 75 percent.

Maximize laundry and dish cleaning. Don’t run a load until the machine is full. Clean the dryer’s lint filter frequently and use lower temperature settings or lower cleaning settings when clothes or dishes are not heavily soiled.

Hope you found this information helpful! Contact me for more insights and info.

Published with permission from RISMedia.

Here are a few tips to help find the right fabric choice for each room in the house.

Style and Aesthetic

From solid colors to vibrant patterns and prints, the hardest part is usually narrowing it down to a fabric that suits your design aesthetic.

Durability

There are certain parts of the home that receive more wear and tear than the rest. In these particular spaces, you may want to opt for a performance fabric.

Care and Cleaning

Take note of any particular cleaning instructions before making a decision.

Tactile Experience

Whether its a silky satin or a plush velvet, your furniture should be finished with a material thats comfortable when sitting or lying down on it.

Published with permission from RISMedia.

If you’ve owned a home for several years and made responsible financial decisions, you may have built a significant amount of equity. Home equity is the difference between the current market value of your house and the amount you still owe on the mortgage. If the value is greater than the debt, you have positive equity that can be used to finance other goals.

How Does Equity Change Over Time?
There are two ways to increase the amount of equity in your home. First, you can pay down the principal on the mortgage and make improvements that will increase the value of the house. As the ratio of the amount of the house you own outright to the amount of debt increases, equity grows.

It takes years to build equity. One reason for this is that mortgages tend to charge more interest at the beginning of the repayment period, which means a relatively small amount of each payment is applied to the principal. Later in the repayment period, a higher percentage of each monthly payment will pay off the principal, so equity will grow at a faster rate.

Paying a mortgage each month can be a way to force yourself to save and build wealth. Since the value of a house will increase over time in most circumstances, you can amass a significant amount of equity if you stay in your house for several years.

Paying your mortgage on time is no guarantee that you will gain equity. If the local housing market or the economy as a whole takes a nosedive, the value of your house could plummet. You could wind up with less equity than you had before, or you might even wind up owing more than your house is worth.

How to Take Advantage of Equity
You can benefit from your homes equity when you sell it. If you receive more than the amount of the outstanding mortgage balance, you will be able to pay off the loan and walk away with a profit.

You can also use your home equity while you are living in your house. You can borrow against your equity with a home equity loan, which would provide a lump sum of money, or a home equity line of credit, which would let you borrow money in a variety of amounts over a period of time, up to your credit limit. Both options would provide you with money that could be used for home repairs and improvements, credit card bills, and other expenses.

If you want to find out how much equity you currently have, you can use a home equity calculator to get an estimate. If you want a more exact figure, you will need to have the house appraised.

Focus on Increasing Equity
Home equity takes time to build, but it can give you the financial flexibility you need to pursue other goals. Diligently paying down your mortgage and making valuable home improvements can help you grow your equity faster.

Published with permission from RISMedia.

Published with permission from RISMedia.