The Press-Dispatch
Issue link: https://www.ifoldsflip.com/i/1171248
The Press-Dispatch Fall Home Improvement Wednesday, September 25 D-13 (StatePoint) PMI, APR, LT V…these unfamiliar ac- ronyms don't need to bewil- der or intimidate uninitiated homebuyers. To help you negotiate the homebuying process like a pro, Freddie Mac is sharing definitions of 10 key acro- nyms you'll encounter as you meet with lenders, make a down payment and pay back your loan. 1. APR (Annual Per- centage Rate): The APR tells you the annual cost of borrowing money based on the loan amount, interest rate and certain others fees. Use it as the bottom-line number to shop and compare rates among lenders. 2. FRM (Fixed-Rate Mortgage): The most com- mon type of mortgage, an FRM, has an interest rate that doesn't change, giving you stability over the life of the loan. 3. ARM (Adjustable- Rate Mortgage): An ARM usually offers lower month- ly payments at the outset, but after three, five or sev- en years, payments change with interest rates and reset periodically. 4. LTV (Loan-to-Value): The LT V ratio equals the amount of money borrowed divided by the home's ap- praised value. It shows how much of your home you own versus how much you owe, and lenders use it to help evaluate the risk and terms of your loan. 5. DTI (Debt-to-In- come): Calculated by lend- ers to assess your ability to manage monthly payments and repay debts, DTI is the percentage of your month- ly income that goes toward your monthly debt pay- ments. 6. PMI (Private Mort- gage Insurance): For home- buyers making down pay- ments that are less than 20 percent of the home purchase price, PMI is a required in- surance that protects lend- ers from losses if borrowers are unable to pay their mort- gage. PMI is typically incor- porated into monthly mort- gage payments. 7. P&I (Principal and Interest): This is the por- tion of your monthly mort- gage payment that goes to- ward paying off the money you borrowed to buy your home. For most homeown- ers, P&I make up the majori- ty of your monthly mortgage payment — but not all of it. 8. PITI (Principal, In- terest, Taxes and Insur- ance): Together, principal, interest, taxes and insurance make up your total month- ly mortgage payment. Cal- culating your total monthly payment is essential for giv- ing you a more accurate pic- ture of the cost of homeown- ership than P&I alone. 9. UPB (Unpaid Princi- pal Balance): The amount of principal still owed on a loan is referred to as UPB. On a typical monthly mort- gage payment, a portion of your payment is applied to the interest and a portion is applied to the principal. The following month's inter- est is based on your UPB. To check how much of your pay- ment is going towards your principal, take a look at your amortization schedule. 10. HOA (Homeowners Association): Twenty per- cent of America's homeown- ers live within a community governed by an HOA. Be- fore buying in such a com- munity, get a handle on how much its HOA fees are, what they cover, and how often payments are due. Typical- ly paid monthly, quarterly, or annually, HOA fees may cov- er services such as trash re- moval, lawn care, pest con- trol and maintenance for common areas. For more homebuying ed- ucational tools and resourc- es, visit myhome.freddi- emac.com. It's easy to feel adrift in a sea of unfamiliar techni- cal acronyms. But, studying your vocabulary now can mean greater confidence when it's time to make one of the most important pur- chases of your life. ACRONYMS homebuyers need to know Design trends come and go, but some have a funny way of resurfacing years af- ter they first became popular. Homeown- ers who may have been considering reno- vating their home to remove a design ele- ment they believe to be passé might want to see if that feature has experienced a re- surgence in popularity. In fact, one of the more derided home decor trends of yester- year has slowly crept back into style, albe- it in moderation. Wood paneling is back and better than ever, advise many design professionals. It's the formerly ugly duckling that filled homes starting in the 1950s, creating drab dens and faux-wood family rooms. Paneling had long been an element of choice because it is relatively easy to in- stall and can camouflage problem walls in a home, like those covered in boisterous wallpaper prints. Wood paneling reach the peak of its pop- ularity in the 1970s, and since then home- owners have been tearing down these faux offenders for years or masking them in paint to brighten up spaces. However, the experts at Apartment Therapy report that wood paneling in shades of brown are making a comeback in cozy spots such as dens or studies. The warm tones of wood paneling elicit a retro vibe. But unlike their fake predecessors, today's paneled walls are being outfitted in real wood, making them more eco-friendly and stylish than ever before. Designers have flocked to reclaimed wood and veneer panelings to incorporate them into design elements. And while wood paneling used to be hung vertically, design- ers now experiment with hanging paneling. Many people no longer use paneling to cover an entire space. Paneling is used sparingly as an accent wall or another feature for character. Wood walls can be stained in a rich mahogany to look upscale or be weathered and rustic. Homeowners ready to re-embrace wood paneling can choose to enhance one wall in a room. Think about the space above a fireplace or a strip of wall behind a sit- ting chair and side table. Paneling also can serve as a headboard behind a bed in a mas- ter suite. Painted horizonally, paneling can add dimension and texture to walls, even in a bathroom. Wood paneling is slowly making a come- back, proving that no design trend every truly goes away. COMEBACK TREND a twist with Kitchens are the most popu- lar rooms in many homes. Even though The U.S. Bureau of Labor Statistics states the average person spends just 68 minutes each week- day consuming food, and around 37 minutes preparing meals, the kitch- en is not just a spot for food. It al- so is a gathering place for conver- sation, homework and family time. In recognition that so much time is spent in this heart of the home, many people are embracing some of the more popular trends con- cerning kitchen layouts to maxi- mize the comfort and efficiency of these rooms. Communal zones Unlike the days of yore when the kitch- en was utilitarian, today's home floor plans make kitchens a focal point of a home. Food preparation also is no longer a solitary task. Thanks to larger kitchen footprints and mul- tiple zones set up for meal creation, a great- er number of people can hang out in the kitchen and help with meals. You'll find mul- tiple sinks, large islands and more counter space are key components of modern kitch- en layouts. Dining nooks Kitchen designs are bringing back ban- quette seating in a cozy nook. This design is a practical use of space, and can fit in large and small kitchens alike. It also can give a kitchen a high-end look, as built-in ban- quettes can highlight a bay window or seem custom-made for the space. Banquette seat- ing can fit a number of people comfortably and provides a sensible and casual dining spot solution. Family table The trend experts at Southern Living magazine indicate that formal dining and living rooms are now used infrequently. As a result, kitchens have evolved to accommo- date meal prep and dining. A large family ta- ble in the center of the room brings people into the kitchen to get more involved with food, according to San Francisco designer David Kensington. Counter culture Taking a page out of a favorite corner din- er or bar, kitchens are increasingly outfitted with a large island flanked by chic counter stools, according to the design pros at Dom- ino. Family members can pull up a stool and grab a quick snack. It's also a great place for friends to engage in conversation while a host or hostess prepares appetizers for an evening soirée. Work zone Many families like to have an area of the kitchen set up as a tech zone where kids can do their homework and even parents can do some work, such as paying bills. Set- ting aside an area of counter space as a small desk area can be a great idea. Such areas also help parents keep a watchful eye on children while they're surfing the internet. Kitchens are the hub of the household, and modern design trends cater to a grow- ing need for a multipurpose space. Rethink your KITCHEN LAYOUT B & B EXTERMINATION INC. 812-630-8391 or 812-630-7929 www.bandbextermination.com We have zero tolerance for pests and bugs! Pest control Termites Bed Bugs Moisture/Fungus Insulation Timbor Borate Southern Indiana's most trusted and reliable local pest control company since 2006