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In the wake of Hurricanes Harvey and Irma, the latest storms to devastate thousands of American homes, homeowners may find themselves wondering whether to consider flood insurance.

For those in areas perceived as vulnerable, it’s no decision since its required as a condition of their home loan. For others, it raises the same questions as other types of insurance; namely, when does the premium outweigh the actual risk? A $650 annual premium, the amount the National Flood Insurance Program (NFIP) cites as average, seems like a lot to pay if you never use the coverage.

Since flood damage is not covered under the average homeowner policy, Nerdwallet, a consumer advisor website, tells USA Today what factors to consider in deciding whether to purchase flood insurance:

Even a minimum amount of flooding can have disastrous financial results. According to the NFIP, one foot of water could cause $27,150 of damage to a 1,000-square-foot home. That said, if you live in a low-risk zone that has never sustained serious flood damage, weigh the coverage cost against the likelihood of filing a claim. A reasonable option might be to set aside money in a repair fund”a good idea for homeowners in any case.

Consider having the amount you’d pay in premiums automatically deposited each month into a high-yield checking or money market account, which nets better returns than simply saving cash. And check with a financial advisor because some states allow customers to place emergency funds in Catastrophe Savings Accounts exempt from state income tax. (Federal taxes still apply, and disbursements are taxed as normal if withdrawn for purposes other than flood repairs.)

Where to Buy, How to Save

Available national (NFIP) or state programs may be best, but some private insurers offer flood insurance with lower premiums, so get quotes. You can save a little by choosing a higher deductible or less coverage. Just be sure you can come through with any needed cash.

The Bottom Line

If you live in a moderate to low-risk area, check with your financial advisor or real estate agent. A flood policy in such an area could cost less than your monthly cell phone bill, and could save you money if your home sustains flood damage.

Published with permission from RISMedia.

Paying less than 20 percent on a down payment on a house will likely require buying private mortgage insurance by the lender.

The insurance, called PMI for short, is used to reimburse the bank if you default on the loan.

It isnt too expensive”usually between 0.5 and 1 percent of the entire loan amount paid annually. On a $100,000 loan, a 1 percent PMI fee equals $1,000 a year, or $83.33 per month. That may not be enough money to make or break a home purchase, but its money that homeowners would rather be saving or spending elsewhere.

There are a few ways to avoid PMI, with the simplest being to have a down payment of 20 percent or more. You can put off buying a home until you can come up with that much money, though thats probably not the answer youre looking for.

Another solution is once youve bought a house, you can cancel PMI once the loans principal balance drops to 80 percent of the homes original appraised value or its current market value. By paying more of the principal each month, for example, you can have 20 percent equity in the home quicker and then cancel PMI.

Your lender may automatically cancel PMI when your mortgage balance is 80 percent. By law it must tell you at closing how long it will take with your monthly mortgage payments to cancel PMI.

You may be able to reach that 80 percent threshold by having your home reappraised if you think it has gone up in value from the original sales price or appraised value.

Another option is a piggyback mortgage. This is a second mortgage or home equity loan that is taken out with a first mortgage. For example, an 80-10-10 piggyback mortgage covers the purchase price with 80 percent from the first mortgage, 10 percent from your down payment, and 10 percent from the second loan, also called a piggyback loan.

This allows you to have a low down payment of 10 percent, but not have a loan-to-value balance of 90 percent that would require PMI. Instead, the two loans lower the LTV and dont require PMI.

Finally, theres the option of lender-paid mortgage insurance, or LMPI. It includes the cost of PMI in a higher mortgage interest rate, meaning youd pay more in interest over the life of the loan.

Published with permission from RISMedia.

These five eye-catching natural stones will make for an unforgettable living space.

Amazonite Extra Granite

With shades of teal and gray infused with white crystals, this makes a design statement in any room.

Pink Onyx

Swirls of pink and white make this mesmerizing surface feel simultaneously relaxing and energizing.

Nero Antico Marble

The contrast of black and white Nero Antico marble gives your home a sleek and modern feel.

Fusion Wow Quartzite

A range of colors including shades of gold, orange, blue and peach make it one of the most unique stones around.

Earth Glitter Granite

Black with shimmering swirls of gray, pink and orange, this stone brings a room to life with its stunning appearance.

Published with permission from RISMedia.

Whether you’re scoping out a vacation property or looking into becoming a homeowner for the first time, applying for a mortgage is a lengthy and complicated process. While your real estate agent and lender will be there to walk you through the details, knowing what possible errors could lay in waiting will help you make the best decision. Let’s review some of the most common mortgage mistakes so you can avoid making them.

1. Weak credit history
Loans are all about credit history ” it’s hard to land a mortgage without one. But having a credit history doesnt mean you have a lot of credit; it simply means you have been given credit in some form and have a documented history of repaying it. How much credit? Lenders often like to see at least three lines of credit with a minimum two-year history on each.

And of course, you don’t just need a credit history; you need a good one. Pay down credit cards and loans regularly to heighten your score.

Pro tip: Paid off that credit card? Don’t cancel the account. Keeping the account active, even if it’s unused, helps build a strong credit history.

2. Weak work history
You’re less likely to get a loan if you can’t prove you’re able to hold down a job. And even if you do get approved with a weak work history, you may not be able to qualify for a good interest rate. What is a strong work history? Aim for at least two current, consecutive years of employment in the same occupation.

Of course, certain circumstances may provide an exception to this rule. If you are a recent graduate with proof of future income, or someone who is coming back out of retirement, some lenders may not hold a lack of recent employment history against you.

3. Opening new credit accounts
Maybe you got a big raise and are applying for a mortgage and leasing a brand new car all in the same month ” bad idea. If you’re thinking of applying for a loan, avoid opening brand spanking new credit lines. Lenders like to see solid, stable credit histories, and a brand new line of credit can’t offer that. Unfortunately, some people make this mistake thinking that it will help their credit score, when in truth it can hinder it.

4. Making big purchases
Slow down there, big spender. Just like lenders want to see stable credit history and employment, they want to see stable spending. If you make large charges to your existing credit accounts around the time youre shopping for a mortgage, you can increase your debt-to-income ratio. So hold off on that new furniture set or big screen TV until after you’ve purchased your home.

5. Not reviewing your credit report
When is the last time you checked your credit? Often, credit reports have errors, and you want to right these before it’s time to apply for your mortgage.

6. Not knowing what you can afford
These days, it’s very easy to figure out how much home you can afford. Simply find a mortgage calculator online, take a look at how much you can pay each month, and plug in the numbers. This will give you a solid idea of how much house you can afford, which can help you avoid disappointment down the road. It’s also important to get pre-approved for a loan before you begin your home search. There have been many instances where a home sale falls through because the buyers made an offer that they couldnt back up with a mortgage. By showing that pre-approval letter, the buyers are showing the sellers they can afford to make good on their offer, and may also be in a better position to negotiate. And these days, many real estate professionals won’t work with a buyer who isn’t pre-approved.

Published with permission from RISMedia.

Published with permission from RISMedia.