Yajnesh Rai

A Sign That More Housing Inventory Is Coming | Realtor Magazine

Homeowners who have decided to stay put in their current properties may soon be ready for a move, helping to relieve stubbornly tight housing inventory. The evidence is in Fannie Mae’s latest Home Purchase Sentiment Index, in which the number of consumers who say now is a good time to sell a home neared an all-time high. The index—which is a measure of about 1,000 consumers’ attitudes toward housing—rose 1.2 points in August to a reading of 88, reflecting a year-over-year jump of 21 percentage points in the number of consumers who looked favorably on selling. The August reading is just shy of the index’s record high of 88.3, set in July.

Meanwhile, the number of consumers who say now is a good time to buy dropped 5 percentage points in August to a new survey low for the second consecutive month. The number of those who look favorably on buying is down 16 percentage points year over year, Fannie Mae reports.

“In the early stages of the economic expansion, homeselling sentiment trailed homebuying sentiment by a significant margin. The reverse is true today,” says Fannie Mae chief economist Doug Duncan. “The net ‘good time to sell’ share is now double the net ‘good time to buy’ share, with record-high percentages of consumers citing home prices as the primary reason for both perceptions. Such a sizable gap between selling and buying sentiment, if it persists, could weigh on the housing market through the rest of the year.” 

Here are some additional findings from Fannie Mae’s August sentiment index reading:

• 36 percent: Consumers who say now is a good time to sell, an uptick of 8 percentage points from July.
• 18 percent: Consumers who say now is a good time to buy a home, a new survey low.
• 48 percent: Americans who say home prices will rise, up 1 percentage point month over month.
• 74 percent: Consumers who say they are not concerned about losing their job, a 1 percentage point drop in August.
• 16 percent: Americans who say their household income is significantly higher than it was 12 months ago, unchanged from July.

Fall Home Maintenance Checklist To Get Your Home Ready For Winter

When the last of summer’s heat is a faint memory, and you’re pulling out your hoodies more than your shorts, it’s time to tackle a few simple chores that’ll make winter more pleasant and prevent some nasty surprises next spring.

 

#1 Clean and Stow Your Mower

If you’re not familiar with fuel stabilizer, get to know it. If your mower sits for months with gas in its tank, the gas will slowly deteriorate, which can damage internal engine parts. Fuel stabilizer ($10 for a 10-ounce bottle) prevents gas from degrading.Add stabilizer to your gasoline can to keep spare gas in good condition over the winter, and top off your mower tank with stabilized gas before you put it away for the winter. Run the mower for five minutes to make sure the stabilizer reaches the carburetor.

Another lawn mower care method is to run your mower dry before stowing it.

1. When the mower is cool, remove the spark plug and pour a capful of engine oil into the spark plug hole.

2. Pull the starter cord a couple of times to distribute the oil, which keeps pistons lubricated and ensures an easy start come spring.

3. Turn the mower on its side and clean out accumulated grass and gunk from the mower deck.

 

Spend Oh-So-Wisely on a Kitchen Remodel

1.     6 Materials to Never Use in Your Kitchen

2.     How to Shop for a Retro Kitchen — and Not Get Stuck with Junk

3.     Refacing Your Kitchen Cabinets: The Options and Costs

#2 Remove Garden Hoses From Faucets

Remove garden hoses from outdoor faucets. Leaving hoses attached can cause water to back up in the faucets and in the plumbing pipes just inside your exterior walls. If freezing temps hit, that water could freeze, expand, and crack the faucet or pipes. Make this an early fall priority so a sudden cold snap doesn’t sneak up and cause damage.

Turn off any shutoff valves on water supply lines that lead to exterior faucets. That way, you’ll guard against minor leaks that may let water enter the faucet. 

While you’re at it, drain garden hoses and store them in a shed or garage.

#3 Drain Your Sprinkler System

Time to drain your irrigation system. Even buried irrigation lines can freeze, leading to busted pipes and broken sprinkler heads.

1.     Turn off the water to the system at the main valve. 

2.     Shut off the automatic controller.

3.     Open drain valves to remove water from the system.

4.     Remove any above-ground sprinkler heads and shake the water out of them, then replace.

If you don’t have drain valves, then hire an irrigation pro to blow out the systems pipes with compressed air. A pro is worth the $75 to $150 charge to make sure the job is done right, and to ensure you don’t have busted pipes and sprinkler head repairs to make in the spring.

#4 Seal Air Leaks

Grab a couple of tubes of color-matched exterior caulk ($5 for a 12-ounce tube) and make a journey around  your home’s exterior, sealing up cracks between trim and siding, around window and door frames, and where pipes and wires enter your house. Preventing moisture from getting inside your walls is one of the least expensive — and most important — of your fall maintenance jobs. You’ll also seal air leaks that waste energy.

Pick a nice day when temps are above 50 degrees so caulk flows easily.

#5 De-Gunk Your Gutters

Clogged rain gutters can cause ice dams, which can lead to expensive repairs. After the leaves have fallen, clean your gutters to remove leaves, twigs, and gunk. Make sure gutters aren’t sagging and trapping water; tighten gutter hangers and downspout brackets. Replace any worn or damaged gutters and downspouts.

If you find colored grit from asphalt roof shingles in your gutters, beware. That sand-like grit helps protect shingles from the damaging ultraviolet rays of the sun. Look closely for other signs of roof damage (#5, below); it may be time for a roofing replacement.

Your downspouts should extend at least 5 feet away from your house to prevent foundation problems. If they don’t, add downspout extensions; $10 to $20 each.

#6 Eyeball Your Roof

If you have a steep roof or a multistory house, stay safe and use binoculars to inspect your roof from the ground.

Look for warning signs: Shingles that are buckled, cracked, or missing; rust spots on flashing. Any loose, damaged, or missing shingles should be replaced immediately.

Black algae stains are just cosmetic, but masses of moss and lichen could signal roofing that’s decayed underneath. Call in a pro roofer for a $50 to $100 eval.

A plumbing vent stack usually is flashed with a rubber collar — called a boot — that may crack or loosen over time. They’ll wear out before your roof does, so make sure they’re in good shape. A pro roofer will charge $75 to $150 to replace a boot, depending on how steep your roof is.

#7 Direct Your Drainage

Take a close look at the soil around your foundation and make sure it slopes away from your house at least 6 vertical inches over 10 feet. That way, you’ll keep water from soaking the soils around your foundation, which could lead to cracks and leaks.

Be sure soil doesn’t touch your siding.

#8 Check Your Furnace

Schedule an appointment with a heating and cooling pro to get your heating system checked and tuned up for the coming heating season. You’ll pay $50 to $100 for a checkup.

An annual maintenance contract ensures you’re at the top of the list for checks and shaves 20% off the cost of a single visit.

Change your furnace filters, too. This is a job you should do every two months anyway, but if you haven’t, now’s the time. If your HVAC includes a built-in humidifier, make sure the contractor replaces that filter.

#9 Prune Plants

Late fall is the best time to prune plants and trees — when the summer growth cycle is over. Your goal is to keep limbs and branches at least 3 feet from your house so moisture won’t drip onto roofing and siding, and to prevent damage to your house exterior during high winds.

For advice on pruning specific plants in your region, check with your state extension service.

#10 Give Your Fireplace a Once-Over

To make sure your fireplace is safe, grab a flashlight and look up inside your fireplace flue to make sure the damper opens and closes properly. Open the damper and look up into the flue to make sure it’s free of birds’ nests, branches and leaves, or other obstructions. You should see daylight at the top of the chimney.

Check the firebox for cracked or missing bricks and mortar. If you spot any damage, order a professional fireplace and chimney inspection. An inspection costs $79 to $500.

You fireplace flue should be cleaned of creosote buildup every other year. A professional chimney sweep will charge $150 to $250 for the service.

 

Things to Do When Moving Into a New House | Moving Into a New House Checklist

When I bought my first house, my timing couldn’t have been better: The house closing was two weeks before the lease was up on my apartment. That meant I could take my time packing and moving, and I could get to know the new place before moving in.

I recruited family and friends to help me move (in exchange for a beer-and-pizza picnic on the floor) and, as a bonus, I got to pick their brains about what first-time homeowners should know.

Their help was one of the best housewarming presents I could have gotten. And thanks to their expertise and a little Googling, here’s what I learned about what to do before moving in.

1. Change the Locks

You really don’t know who else has keys to your home, so change the locks. That ensures you’re the only person who has access. Install new deadbolts yourself for as little as $10 per lock, or call a locksmith — if you supply the new locks, they typically charge about $20 to $30 per lock for labor.

2. Check for Plumbing Leaks

Your home inspector should do this for you before closing, but it never hurts to double-check. I didn’t have any plumbing leaks to fix, but when checking my kitchen sink, I did discover the sink sprayer was broken. I replaced it for under $20.

Keep an eye out for dripping faucets and running toilets, and check your water heater for signs of a leak.

Here’s a neat trick: Check your water meter at the beginning and end of a two-hour window in which no water is being used in your house. If the reading is different, you have a leak.

3. Steam Clean Carpets

Do this before you move your furniture in, and your new home life will be off to a fresh start. You can pay a professional carpet cleaning service — you’ll pay about $50 per room; most services require a minimum of about $100 before they’ll come out — or you can rent a steam cleaner for about $30 per day and do the work yourself. I was able to save some money by borrowing a steam cleaner from a friend.

 

4. Wipe Out Your Cabinets

Another no-brainer before you move in your dishes and bathroom supplies. Make sure to wipe inside and out, preferably with a non-toxic cleaner, and replace contact paper if necessary.

When I cleaned my kitchen cabinets, I found an unpleasant surprise: Mouse poop. Which leads me to my next tip …

5. Give Critters the Heave-Ho

That includes mice, rats, bats, termites, roaches, and any other uninvited guests. There are any number of DIY ways to get rid of pests, but if you need to bring out the big guns, an initial visit from a pest removal service will run you $100 to $300, followed by monthly or quarterly visits at about $50 each time.

For my mousy enemies, I strategically placed poison packets around the kitchen, and I haven’t found any carcasses or any more poop, so the droppings I found must have been old. I might owe a debt of gratitude to the snake that lives under my back deck, but I prefer not to think about him.

6. Introduce Yourself to Your Circuit Breaker Box and Main Water Valve

My first experience with electrical wiring was replacing a broken light fixture in a bathroom. After locating the breaker box, which is in my garage, I turned off the power to that bathroom so I wouldn’t electrocute myself.

It’s a good idea to figure out which fuses control what parts of your house and label them accordingly. This will take two people: One to stand in the room where the power is supposed to go off, the other to trip the fuses and yell, “Did that work? How about now?

You’ll want to know how to turn off your main water valve if you have a plumbing emergency, if a hurricane or tornado is headed your way, or if you’re going out of town. Just locate the valve — it could be inside or outside your house — and turn the knob until it’s off. Test it by turning on any faucet in the house; no water should come out.

 

Mortgage Rates Strike New 2017 Low | Realtor Magazine

 

 

For the third consecutive week, the 30-year fixed-rate mortgage averaged a new year-to-date low.

“The 10-year Treasury yield fell 9 basis points this week,” says Sean Becketti, Freddie Mac’s chief economist. “The 30-year mortgage rate followed, dropping 4 basis points to a year-to-date low of 3.78 percent.”

Freddie Mac reports the following national averages with mortgage rates for the week ending Sept. 7:

• 30-year fixed-rate mortgages: averaged 3.78 percent, with an average 0.5 point, falling from last week’s previous yearly low of 3.82 percent. Last year at this time, 30-year rates averaged 3.44 percent.
• 15-year fixed-rate mortgages: averaged 3.08 percent, with an average 0.5 point, falling from last week’s 3.12 percent average. A year ago, 15-year rates averaged 2.76 percent.
• 5-year hybrid adjustable-rate mortgages: averaged 3.15 percent, with an average 0.4 point, rising from last week’s 3.14 percent average. A year ago, 5-year ARMs averaged 2.81 percent.

Tips for Saving Up for a Down Payment | Realtor Magazine

About 60 percent of home buyers put 6 percent or less down on their home purchase, according to data from the National Association of REALTORS®. Considering the median existing-home price is $258,300, a 6 percent down payment would be $15,498.

Some aspiring buyers may be unsure of how to come up with that amount. But there are plenty of seemingly simple things they can do to start saving. NAR offers the following infographic.

 

 

8 Home Projects with a High ROI

PS: This numbers is are based on national average and can vary significantly in different areas.

With warmer weather and longer days, summer is the ideal time of year to take on a project in or around your home. Many contractors and other pros often find this time of year a little slower, as many homeowners are waiting until fall to tackle big interior projects, which means that you’ll have an easier time finding the right person for the job.

These eight projects are designed to add value to your home, without breaking the bank at the same time. Tackling them now will make your home more comfortable for the coming months, while ensuring that you can get maximum ROI when the time comes to sell.

 

1. Fix Window Leaks

Air gap around your windows could be driving your air conditioning bill up higher than it needs to be this summer. Old or leaking windows can cause you to lose as much as 20% of the energy you use to heat and cool your home, which can also make it less comfortable as well.

There are two ways to fix window leaks: installing new replacement windows, or installing weatherstripping around your existing windows. While both will help you save money on your energy bills, replacement windows will also help you recoup about 73.9% ROI at time of resale.

Cost: Weatherstripping your windows costs around $168 on average, while replacement windows cost between $650 and $1,500.

Money Saving Tips: Get an energy audit done on your home before you start replacing windows. You may find that only a few need to be replaced, while the rest can be caulked or weatherstripped to save.

2. Basement Remodel

Remodeling your basement is a great way to increase your existing living space, without the hassle or expense of a major addition. Basements are often cooler in the hot summer months than the rest of the home, so remodeling can help you gain more usable living areas during this time of year. A basement remodel featuring things like waterproofing or french drain installations can also recoup you about 70% at time of resale.

Cost: A full basement remodel including a new bathroom can cost around $50,000. However, waterproofing costs around $5,000, while installing a new set of stairs costs around $1,000 to $2,000.

Money Saving Tips: Simply waterproofing your basement will help make the area livable, allowing you to simply paint the concrete walls and floors, and begin furnishing the room for less.

3. Bathroom Remodel

Bathrooms are among the most frequently used rooms in the home. During the humid summer months, older bathrooms can often become home to things like mold and mildew, which makes now the best time to start remodeling. A bathroom remodel, including all new fixtures, shower, and ceramic tile can recoup you around 64.8% at time of resale, while making your home healthier and more functional at the same time.

Cost: A full scale bathroom remodel costs around $18,000. However, there are many components that can be done for less, such as installing a new bathroom fan to help dry out the room for $350 – $400 or putting in a new mirror for $120 – $150.

Money Saving Tips: Cosmetic updates to an otherwise functional bathroom can save you a lot of money. Simply painting the walls or replacing the sink and faucet can give your bathroom a facelift for less.

4. Add Attic Insulation

Another way to help lower energy costs this summer is to add some insulation to your attic. Most homes are underinsulated, particularly in this area, which can contribute to higher energy costs. Insulating your attic will make your home more comfortable, while saving you money on your AC bill this summer. Best of all, attic insulation recoups a whopping 107% at time of resale.

Cost: The cost to insulate an attic is around $400 for fiberglass insulation.

Money Saving Tips: Purchase the highest R-value you can find for your climate, and you’ll save even more on your energy bills year round.

5. Build a New Deck

Enjoy more time spent outdoors this summer on a new wood deck. Decks increase your usable outdoor space, make entertaining easier, and have a rate of return at around 71.5%. Start this project early in the summer to make the most of your new space before fall.

Cost: The average cost to build a new deck is around $10,630.

Money Saving Tips: If you have an existing deck, consider having it repaired, rather than replacing it. Often pressure washing and staining a deck, while replacing some of the boards can help extend its life.

6. Replace Your Roof 

After a long winter filled with ice dams, your roof may be in poor condition and in need of replacement. Don’t wait until summer storms send water pouring in through your ceiling; have your roof taken care of at the start of the season to ensure that it’s in good condition for the rain to come. A new roof will help you recoup about 68.8% at time of resale as well.

Cost: The average cost of a roof replacement is around $6,000.

Money Saving Tips: If the majority of your roof is in good condition, you may want to opt for a partial replacement or roof repair to save money.

7. Replace Your Siding 

Siding is just as important as your roof when it comes to both protecting your home from the elements, and to giving it its curb appeal. The nicer weather of the summer makes this the ideal time of year to take care of this important project. Replacing your siding can recoup you as much as 76.4% at time of resale. Replacing your siding can also help you take care of other issues such as rotting fascia, and can improve the appearance of your home at the same time.

Cost: The average cost of replacing your siding is around $7,510 for vinyl siding.

Money Saving Tips: If your siding is in decent condition, consider making repairs to those areas that require it, and painting the entire exterior to give it a fresh look for less.

8. Universal Bathroom Design 

Universal design is one of the newest trends that’s recouping costs in a big way. In many cases, universal design costs less than a complete bathroom remodel, but can make your home easier to sell because it appeals to a wider group of people. Take on the project this summer when plumbers aren’t as busy to get the job done faster. This type of project also recoups about 68.4% at time of resale.

Cost: The average cost of universal bathroom design is around $9,000.

Loan Demand Rebounds on Lower Rates | Realtor Magazine

Following several weeks of drops, mortgage application volume pushed higher last week. The uptick was mostly due to an increase in refinancers who took advantage of lower mortgage rates.

Total mortgage application volume, which reflects refinance and home-buying activity, rose 3.3 percent week over week on a seasonally adjusted basis last week, the Mortgage Bankers Association reported Wednesday. However, volume remains 23 percent lower than a year ago.

Broken out, refinance volume moved 5 percent higher last week. Mortgage applications to purchase a home increased slightly, by 1 percent for the week. Applications for home purchases are now 5 percent higher than the same week one year ago.

The average contract interest rate for the 30-year fixed-rate mortgage fell to 4.06 percent, the lowest level since November 2016. The previous week the 30-year mortgage rate had averaged 4.11 percent.

“Heightened geopolitical tensions last week brought mortgage rates to their lowest level since the 2016 election,” says Joel Kan, an MBA economist. “Refinance volume jumped as a result, and for the first time since January, the majority of application volume was for refinances, with the refinance share almost 51 percent.”

The MBA also noted that Hurricane Harvey had an impact on application volume last week. Banks affected by the storm shut down all mortgage activity.

“Focusing in on Texas, unadjusted application volume was down 21.7 percent for purchase and 22.9 percent for refinances,” Kan says.

Homeownership Remains the American Dream | Realtor Magazine

Homeownership remains the number one accomplishment of achieving the American dream, according to the 2017 Hearth State of the American Dream Report, based on a survey of 2,000 Americans.

The consumers surveyed said the most important elements of the American dream are:
#1. Owning a home I love (19%)
#2. Affording rent and living expenses without hardship (15%)
#3. Starting a family (14%)
#4. Finding a fulfilling career (14%)
#5. Sending my child to college (10%)
#6. Building retirement savings (9%)
#7. Being able to afford luxuries (7%)
#8. Owning a car (5%)
#9. Earning more than my parents (social mobility) (3%)
#10. Owning a pet (2%)

However, Americans fear that portions of their American dream may be slipping away, according to the survey conducted by Hearth, a “fintech” startup that helps homeowners make financial decisions during renovations. Fewer than one in five Americans surveyed say they are fulfilling their American dream. Eighteen percent said they are fully living the American dream, while 36 percent say they are living only parts of it and 28 percent say it’s within reach.

Forty-nine percent of millennials surveyed who were renting their home said that owning a home was crucial to them. Ninety-four percent of the millennials surveyed said that homeownership is important to achieving the American dream, with 55 percent saying owning a home they love is “very important.”

Ninety-seven percent of homeowners surveyed believe renovations are an important part to the American dream. Fifty-five percent of homeowners said owning a home they love is crucial, but only 3 percent believe they could achieve an American dream home without a renovation, according to the survey.

Overall, the top three U.S. states for consumers who say they are living the full American dream are Wyoming (40%), Delaware (38%), and Colorado (36%).

Wasting Money | Household Money Saving Tips | Are Extended Warranties Worth It

The washer/dryer combo was perfect! Such a delightful way to brighten laundry day — with a cheerfully colored front-loader set. They could actually make laundry fun!

“They were this gorgeous, greenish-teal, and they looked great in my laundry room,” says Eliesa Prettelt, avid DIYer and author of “A Pinterest Addict” blog.

But after barreling through three sets in four years, she knew she’d made a mistake. “They looked so pretty, but I had nothing but problems with them,” she says.

She eventually gave up and got nondescript, white, commercial-grade top-loaders she scored for less than half the cost of her original machines. They may be plain, she says, but “I’ve had no problems since.”

Lesson learned. The hard way. Now for learning the easy way. Here are seven common money mistakes homeowners make — and now you won’t.

1. Contractor House Calls

Think you need a pro to fix that leaky toilet? You’d be surprised how easy it can be to fix it yourself — and save the typical $45 to $150 per hour plumbers can charge (and don’t forget the boost in your can-do attitude!). You can often find home remedies for small jobs like a leaky faucet or broken garbage disposal on YouTube. Just be sure it’s a reputable source. And check out several videos on the same repair. That’ll help make sure no crucial step is missed.

“We save a couple hundred dollars per year by doing small home repairs ourselves,” says Lauren Greutman, frugal living expert and author of “The Recovering Spender: How to Live a Happy, Fulfilled, Debt-Free Life.”

For those who prefer an expert, Greutman suggests smaller, local retail appliance stores. “It’s a little-known secret that they usually have repair men that are very inexpensive,” she says.

2. Extended Warranties

It’s tempting to insure your new, big purchase, but according to Consumer Reports, you’re probably already as covered as you need to be.

How’s that? Most major appliances come with at least a 90-day manufacturer’s warranty. Buy with a major credit card (Visa, Mastercard, Discover, or American Express) and it will likely double that standard warranty.

Combine that with the fact that “Consumer Reports” found most products won’t break during the standard two- or three-year service contract period. When they do, the repair cost is usually just a few dollars more than the cost of the warranty.

Instead of paying for an extended warranty, stash the cash in a savings account earmarked for home repairs. When you need it, it’ll be there.

3. Flashy Feature Appliances

The newest appliances come with super fun features. Who wouldn’t want an oven that talks, remote access to your A/C, or bottle jets in the dishwasher (paging new parents!)? Still, it may not be financially wise to replace a fully functioning older model just to gain modern perks. So says Arthur Teel, owner and operator of The Handyman Plan in Asheville, N.C.

Circuit boards break, and energy efficiency numbers don’t always add up,” he says.

Yup. That’s even true for some energy-efficient appliances that boast cost savings. “Spend $1,000 on a new, energy-efficient stove and it could take 10 years of energy savings to offset the cost of the new stove,” he says. “Unless you have a really old appliance, it’s probably efficient enough for your needs. Also, putting the appliance into the landfill isn’t exactly great for the environment.”

4. Budget Bulbs

Incandescents may be easy on your everyday household budget, but they’re tough on your energy bill. Start replacing them now with LEDs. To help swallow the initial costs, just replace them as they die out. A typical LED bulb can recuperate its cost in a little over a year (at least according to manufacturers, so in reality it’s probably a bit longer, but not enough to quibble about). Even better, since LEDs can last a decade or more, you won’t have to buy bulbs as often, and your energy costs will be lower!

5. Commercial Cleaning Supplies

Even if you’re buying off-brand products to save costs, you’re still wasting money. You don’t have to spend anywhere near the cost of commercial products.

“Vinegar will clean a lot of things, and it’s a heck of a lot cheaper than buying pricey cleaning supplies,” says Prettelt. She also likes baking soda and hydrogen peroxide, each of which can be found for just a fraction of the cost of their popular store-bought equivalents.

“You can use these natural products in your dishwasher, in your garbage disposal, in your wash,” Prettelt adds. Easy peasy. And it’s super cheap.

That’s right. You can make dishwasher soap from a cup each of borax and washing soda, a half-cup kosher salt, and five packets unsweetened lemonade mix. Or whip up your own window cleaner with these simple ingredients:

• half-cup white vinegar
• rubbing alcohol
• two cups of water
• two tablespoons of cornstarch

All those ingredients cost pennies. And to think you were paying $2-$4 for the commercial kind.

6. A Storage Unit

If it doesn’t fit in your home, is it really worth keeping? Ditch nostalgia and think with your bank account: At a cost of between $50 and $300 per month, it may be time to purge the junk.

If you can’t bear to part with something you don’t use regularly — say, great-grandma’s heirloom china — rethink your home’s organizational storage. Clean out the closet, craft shelves beneath the stairs, or build window seats with drawer storage. You’ll be investing in your home instead of giving money to a storage vendor.

7. Private Mortgage Insurance (PMI)

Bought your house with less than 20% down? You’re probably paying for PMI (a type of insurance that guarantees your mortgage lender will be covered if you default). It costs between $600 and $1,200 per year for a typical home. But once your loan-to-value ratio drops to 80%, you’re not required to pay it. But the lender isn’t required to drop it until it reaches 78%.

That 2% difference could cost you hundreds, even thousands of dollars, depending on your home’s mortgage balance. So, keep an eye on your statement and whip out that calculator when you’re getting close. Then, if you’re feeling really savvy, keep paying that amount every month — but apply it to your mortgage principal instead. Do that, and you could recoup your PMI fees. Because as you pay down your principal, you’ll pay less in interest, potentially saving thousands. Now how savvy is that?

How to Get a Mortgage Without a Full-Time, Permanent Job – @Redfin

The growing number of gig economy workers in this country may have the freedom to work whenever they want, and sometimes from wherever they want, but when it comes to buying a home, all of that freedom has its price.

It turns out employees who have many part-time jobs, hop from one short-term contract or project to the next, or rely on freelance work as opposed to permanent jobs, don’t come packaged in the tidy financial box that mortgage lenders typically like.

“Historically the mortgage industry wants everything — residency, credit score and a two-year history of employment. And we’re also trying to predict the likelihood of that continuing for the next three years,” said Whitney Fite, senior vice president, strategic accounts for Atlanta-based Angel Oak Home Loans. “With the gig economy, we’re seeing less and less people fitting in that box.”

Gig economy workers don’t often have the requisite stack of W-2s to document wages. And predictions for future income can be murky. All of which can make obtaining a mortgage an uphill climb unless you, as the gig economy worker, do your homework and start preparing your finances and paperwork well in advance.

Here are six tips to help prepare you for the home loan application process.

1. Get Organized

The No. 1 piece of advice Fite has for gig economy workers who want to own a home is to spend time organizing all of your documentation, including proof of employment and income, the names and phone numbers of references, previous employers, landlords and more. You’ll also want to pull your credit scores so you know exactly where you stand. You can get your two free credit scores on Credit.com.

“Have all of your records, have all the dates of where you worked, who you worked for. It’s going to be onerous from a documentation standpoint, but you need to be prepared,” said Fite.

Gathering this information is more important for gig economy workers than typical borrowers, because you will have to work harder to convince a mortgage lender to approve a home loan.

2. Go the Extra Mile to Educate Your Mortgage Lender

You need to be able to explain to your mortgage lender what you do for a living.

Take the time to educate him or her about your job. Perhaps print out a news article or other information that will help a lender understand what you do.

“You need to prove that your past two years are normal. And that the likelihood of continuance is there,” said Fite. “Be prepared to supply a lot of documentation for that, such as articles about your industry. Things of that nature go a long way. The mortgage lender is not going to make a decision based on it, but it will help create a level of comfort.”

In addition, showing consistency in terms of the type of work you do will improve your chances of obtaining a mortgage, said John Moran, a mortgage professional who runs The Home Mortgage Pro.

A mortgage underwriter is looking for a stable history. Even if the gigs themselves start and stop frequently, gigs within the same industry or utilizing the same skill set will be considered more favorably.

3. Ease Up on the Deductions…

Self-employed individuals, as gig economy workers typically are, often use a Schedule C when filing taxes to report income and write off numerous expenses tied to working the way they do.

The downside of deducting a long list of expenses from your income is that it reduces your profits on paper. You may bring in $73,000 in a given year. But after deducting the cost of everything from internet and cell phone bills, to travel, business meals and professional memberships, your net income on paper may be far less.

“Use caution in how you’re deducting expenses as it’s the net income that’s used to qualify for a mortgage, not the gross pay,” said Kevin Hardin, a senior loan officer with HomeStreet Bank. “It’s tempting to use the full breadth of the IRS tax laws to reduce taxable income, but every dollar that is reduced from that taxable income reduces the income that can be used for qualifying for a mortgage.”

So, if you know you want to buy a home in the near future, consider forgoing some or all of the deductions for a year or two to increase the income you’re reporting.

4. …But First, Talk With a Mortgage Officer About Your Goals

Before completely doing away with claiming any or all expenses on your tax return, however, talk to a mortgage officer about your home buying goals. (Here are some tips for finding a good mortgage lender.)

“Go to a mortgage officer and say, ‘This is the amount of home I want to buy, how much income will I need to show?’” said Hardin. “Don’t just arbitrarily stop writing things off.”

In other words, get educated about the income you’ll need to show on paper first, before throwing write-offs out the window. Once you’ve identified how much mortgage you’d like, it will be easier to determine what the monthly mortgage payment would be and thus, how much income you’ll need to be able to document.

“The first step is to talk to a mortgage loan officer and then take that information to your tax preparer and say, ‘This is the number I need to hit in terms of income,’” Hardin said.

5. Get Your Debt Down

Let’s stress this one more time — because you are a gig economy worker, mortgage lenders will require more assurance that you’re qualified for a loan and that you’re a good risk.

To that end, work to get your debt down to zero, or as low as possible before applying for a mortgage, and keep your credit score in excellent standing, said Casey Fleming, a mortgage adviser since 1995 and author of The Loan Guide: How to Get the Best Possible Mortgage.

“Self-employed borrowers are going to be held to a higher standard because there is an added layer of risk with them,” said Fleming.

6. Try a ‘Bank Statement’ Mortgage

Newly emerging “bank statement” mortgage programs may be a good option for self-employed or gig economy workers to consider, said Fite, of Angel Oak Home Loans.

Such mortgages rely upon reviewing 12 to 24 months worth of deposits to one bank account  and a profit and loss statement for your business, in lieu of the traditional two years of tax returns, W-2s, and payroll checks.

“These are geared toward the gig economy. It’s a rapidly growing segment of mortgages across our industry,” said Fite.

A variety of mortgage lenders are beginning to offer this loan option.