Private mortgage insurance is necessary for buyers who don’t have or choose not to put 20% or more down payment when they purchase a home. It is required for high loan-to-value mortgages and it provides an opportunity for many people to get into a home who otherwise would not be able.

The problem is that it is expensive and a homeowner’s goal should be to eliminate it as soon as possible to lower their monthly payment and avoid putting good money down the drain.

FHA loans made after 6/1/13 that have 90% or higher loan-to-value at time of purchase have mortgage insurance premium for the life of the loan. FHA loans made prior to 6/1/13, can have the MIP removed after five years and if the unpaid balance is 78% or less than the original loan-to-value.

International buyers are entering the U.S. housing market at a rapid pace, according to a recent NAR report, the 2013 Profile of International Home Buying Activity. In fact, international buyers accounted for 7 percent of all residential purchases in the U.S. in the 12-month period ending in March 2014, with a volume of $92 billion in sales. “That’s good news for real estate brokers,” says Nancy Suvarnamani, president of CENTURY 21 S.G.R. Inc., and chair of NAR’s Global Business & Alliances Committee. “Global is local now.”

“Each year, there is growth in global trade, which immediately brings more interaction across the borders,” says Lawrence Yun, chief economist for the National Association of REALTORS®. “Furthermore, economic growth and income growth in some emerging countries are rising very fast.”

As international buying activity rises, agents and brokers across the country are preparing to work with these out-of-country clients. But how does working with an international client differ from a domestic one, and why is it so important to work with foreign buyers?

Why Work with International Clients?
“The U.S. market is wide open for international buyers,” says Senior International Real Estate Specialist David Lauster, U.S. State Department. “The continued interest of international buyers will soak up any excess in the U.S. market and push prices up, which is good for property owners and for real estate agents who are able to connect with these global clients.”

Many years ago, Las Vegas hotels would entice customers with inexpensive rooms, meals and entertainment so they would gamble. It may have worked initially but if you’ve been to Las Vegas recently, the bargains are gone. Hotels expect each division to be a profit center on its own. As a consumer, I might not like the changes but as an investor, I’d have to be pleased with increased profitability.

Years ago, real estate investors used to accept negative cash flow buoyed by tax incentives in hopes of making a big payday due to appreciation when they sold it. Today’s investors are focusing on tangible, current results like cash flow and equity build-up.

Summertime is the perfect time to enjoy a trip to the amusement park. But it's a bad time for the rollercoaster ride consumers may be subject to as they close in on their new home purchase.

According to a recent notice from realestateeconomywatch.com, downpayments, for example, are creeping up.

From April through June 2014, about 67 percent of first-time buyers made a downpayment of 6 percent or less, down from 74 percent in 2009, according to the latest Realtor Confidence Index report from the National Association of REALTORS.

One reason the average down payment is growing may be that more and more first-timers are choosing conventional over FHA financing, which requires only 3.5 percent down. Since conventional loan underwriting standards have been getting tighter and borrowers’ costs are going up.  

Green living not only helps the environment, it helps your pocketbook. When making upgrades to your home - whether it's replacing a light bulb or a total living room makeover - incorporate energy-efficient and repurposed materials to make your living space more environmentally friendly.

Emily J. Reynolds, an interior design faculty member at The Art Institute of Raleigh-Durham, a campus of South University, encourages green living through reuse of existing materials.

"There is a special feeling you get when you see a piece of furniture by the side of the road, fix it up, and put it to use again," she says.

Reynolds locates used furniture at resale stores including Goodwill and the Salvation Army, or at yard sales. "When you are searching for furniture, know that it does take a little patience to find the right piece." Reynolds says it's important to pay special attention to the form of the piece and to look for high quality construction.

Modern kitchens are generally built with space and convenience in mind. But if you’re living with an older kitchen, there are easy additions you may want to consider to maximize available space and cooking area.

The Wall St. Journal’s home and living editors provide their top six suggestions:

• Kitchen island – A kitchen island can double or triple both food preparation and storage space. An inexpensive portable island can give you space and flexibility.
• Wall oven – It’s a lot easier to baste a turkey at eye level than it is when it’s below the stove – and there’s something to be said for the extra elbow room it will give you when you are multi-tasking in the kitchen. Lastly, a wall oven with two compartments gives you extra baking space and the availability of convection or rotisserie options.
• Cabinet organizers/lazy susans/pullout shelves – Easy access to pantry items and pots and pans make food preparation easier and faster. Consider having lazy susans, pull-out shelves and other organizers built into your kitchen cabinets.

A dirty air filter decreases the effectiveness of your HVAC system because it inhibits airflow and allows dirt, dust, pollen and other materials to blow through the system.

The challenge is how often it should be changed to keep the system working efficiently and extend the equipment life. Too often and you’re wasting money and not often enough and your increasing the operating and maintenance costs.

Fiberglass panel filters are inexpensive and easy to find but they’re not very efficient and they allow most dust to pass through. They were popular years ago but there are much better products available currently.

Pleated air filters are available in MERV ratings from 5 to 12. As these filters collect dirt and other particles, they become less efficient to the point of impacting air flow. Allergy sufferers can benefit from this type of filter. These should be changed every two to three months based on local conditions.

HEPA filters stand for High Efficiency Particulate Arrestance. They are very efficient and more expensive than previously described filters. Since they are very efficient, they require changing more frequently; possibly, every month.

Electrostatic air filters are permanent and washable. They generally cost more initially but the savings will be based on how long they last. This type does not add to landfill issues or produce ozone.

Improperly maintained filters will lower the quality of the air in the home, have a negative impact on air flow, cause it to use more electricity and eventually require maintenance to the systems.

In an attempt to easily comparing filters, a rating system was created called MERV, an acronym for Minimum Efficiency Reporting Value. The rating from 1 to 16 indicates the efficiency of a filter based on standards set by ASHRAE. Higher ratings indicate a greater percentage of particles are being captured in the filter.

To create a system to remind you when to change your filters, set a reminder on your electronic calendar to recur for whatever frequency you determine is best for you. Be sure to keep a supply of filters on hand to be ready to change them out when the time comes.

A: B, C, and D paper loans are types of sub-prime loans. There was a time when they were hard to find. Then when the housing market took off, so did the number of lenders offering them. Not so today. High default rates on sub-prime mortgages made to high-risk borrowers with bad credit or those who had filed for bankruptcy or had a property in foreclosure, now have many lenders either shunning these loans or tightening credit requirements on them.

As a rule, these loans have not met the borrower credit requirements of “A” or “A-” category conforming loans. Because mortgage lending is divided into various credit grades, several factors influence whether you receive, say, a “B” or “D” designation, including past credit history, documentation, and your debt-to-income ratio. The more serious a borrower’s problems, the lower the grade of the loan and the higher the rates and fees associated with the loan.

At one time, the outrageously high rates on these loans had dropped as more lenders began to offer them. Since the credit crunch spurred by the sub-prime mortgage crisis, rates on these paper loans have shot back up, reflecting in more stark terms their heightened risks.

The National Association of the Remodeling Industry recently found that 81 percent of home improvement projects are renovations to existing bathrooms. Bathroom remodels are considered one of the better returns on investments – experts estimate that homeowners reap about 65 percent payback from a bathroom upgrade. Costs can vary, however, depending on whether the footprint of the original bathroom is maintained or plumbing lines and electrical wires need to be moved.

“We’re seeing a variety of master bathroom projects ranging from $40,000 to $60,000 that involve a complete tear-out of everything, rearranging of fixtures, new double vanities, tub, shower and commode,” Mark Witte, owner of DreamMaker Bath and Kitchen in Colorado Springs, Colo. “Hall bathrooms and powder rooms are usually about $15,000, when the footprint of the existing space is used. What drives the cost is how much you move around, the size of the bathroom, upscale fixtures and plumbing. More and more customers want to splurge on comfort items, like heated floor tiles and towel racks.”

The desire to escape hectic, urban lifestyle in a peaceful spa-like oasis is growing increasingly popular in bathroom design, and an East-meets-West aesthetic is in high demand. Asian-style interiors evoke an image of serenity and tranquil calm. Contemporary bathrooms with an Asian flair accomplish this by blending colors found in nature with clean, modern lines that create harmony and balance.

Accents that compliment a Far East-inspired design include opening the space to bring in light; using natural elements such as river pebble shower floors, steam showers with multiple showerheads, and bamboo blinds; and incorporating music and other built-in entertainment options. Other common features include curving mirrors, rustic wood cabinetry, onyx sinks and Shoji-style doors and panels.

Source: NARI

Data released this summer from HomeAdvisor shows most homeowners surveyed (almost 58 percent) paid for their last home project with cash. Additionally, 45 percent of the requests nationally were for addition and remodeling projects, such as bathroom and deck renovations.

National trends show that 47 percent of homeowners surveyed said they were more likely to put money into their home now to increase value than they were 12 months ago. Additionally, 78 percent of homeowners are completing home improvement projects to increase their quality of life. Of the cities that data was collected from, Dallas, Texas had the highest percentage of addition and remodeling requests. Results also show an increase in home improvement requests in Dallas, Denver and Boston, with Boston receiving the largest increase of 6.35 percent.

“While maintenance and repair projects lead the requests in numbers, large home improvement projects, such as remodeling a bathroom and building a deck demonstrate homeowner confidence,” said HomeAdvisor CEO Chris Terrill. “Homeowners are investing in their homes to increase value and quality.”