Budgeting Your Project

GNMA Fund Risks

GNMA funds are mutual funds which have mortgage-backed securities issued by the Government National Mortgage Association, or Ginnie Mae. The U.S. government ensures the payment of interest and principal from Ginnie Mae bonds. GNMA funds are a choice for investors looking to get a higher but safe rate of interest, but these funds still have a few dangers.

Interest Rate Risk

The Ginnie Mae bonds held with GNMA funds are marketable securities, and their worth is dependent on current market interest rates for similar securities. Bond costs, such as GNMA bonds, vary inversely to changes in rates of interest. If prices rise, the market cost of the Ginnie Mae bonds in a portfolio will decline. The fund reflects these cost declines with a decreasing share price. In a rising rate environment, the share value of a GNMA fund can diminish faster than the interest paid makes up for the decline. This result is particularly detrimental to investors that are taking their fund dividends in cash and see their principal value decreasing.

Prepayment Risk

A GNMA mortgage protection is compensated from a pool of mortgages with the same interest rate and maturity. Ginnie Maes are securities. As the homeowners at the pool make their mortgage payments, the Ginnie Mae bond holders receive monthly payments of principal and interest. When mortgage interest rates decline, the homeowners can decide to refinance their mortgages, and the GNMA fund owning the bonds will start to receive larger principal payments from the bonds it holds. Bonds with fixed maturities will see their market values increase when prices drop. GNMA funds will see their principal come in faster, which will have to be reinvested at lower rates of interest. Investors at a GNMA fund will probably find their dividend rate decline at a faster speed than with a fund which owns fixed-maturity bonds.

Duration Risk

The open-ended length of GNMA securities has exactly the contrary effect if prices rise. Homeowners whose mortgages make up the Ginnie Mae pools will be less likely to refinance their low-rate mortgages, and the expected length of their GNMA bonds will lengthen. This usually means a Ginnie Mae fund will receive principal payments in a slower rate. Less principal repayments means less money which can be reinvested in the higher current interest prices. In a rising rate environment, GNMA fund holders will see their share values drop, and the capital will probably require longer to have the ability to pay the higher prices of their current bond market.

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Budgeting Your Project

Mortgage Calculation: How Much Can I Borrow?

People looking for a mortgage usually begin by asking,”How much can I borrow?” That question may be better phrased as,”How much does lenders allow me to borrow?” Banks and other lenders use formulas to determine the maximum amount that they think you can manage based on how much cash you have and the amount of the income is already spoken .


Lenders look at your mortgage application with two numbers in mind. The first is the gross income, or how much money you make each month before taxes. The next is the total amount of money you spend each month on household debt obligations –everything from house and car payments to credit card debt and student loans. Lenders refer to this relationship between those amounts as the”debt-to-income ratio,” or DTI, and it is expressed as a percentage. By way of example, if your before-tax household income is $7,000 per month, and your total monthly debt payments add up to $2,100, then your DTI will be 30 percent ($2,100 will be 30 percent of $7,000). Lenders also look at the”housing ratio” That’s the portion of your gross income that would be eaten up from your house payment. Say that your debt obligations, $1,800 is for a house payment. Your housing ratio is about 26 percent.


Most lenders do not wish to see a DTI higher than about 36 percent and a housing ratio higher than about 28 percent. If your gross monthly income is $7,000, you are able to afford a maximum house payment of about $1,960, out of a maximum monthly debt load of about $2,520. If your monthly debt obligations are already pretty high on your income, then that’s going to decrease the quantity that mortgage lenders are willing to give you.


Once you’ve determined your maximum monthly payment, then you can start to figure out how much you can borrow. Use the above illustration of a $1,960 maximum payment. The very first point to notice is that, so far as lenders are concerned, your house payment does not just include the principal and interest you’re repaying the bank. Additionally, it includes the costs of real estate taxes and insurance premiums. These vary based on where you live, which means you’ll have to do some research. As an example, in California in 2010, the average cost of homeowners insurance has been 730, based on HomeInsurance.com. That comes out to about $60 per month. And state your property taxes come out to $3,600 a year, or $300 per month. Blend both –$360–and subtract it from your maximum monthly payment. In this case, you get $1,600.


There are lots of easily available mortgage calculators that you can use to interpret your own monthly payment to some mortgage figure. You’ll need to get some idea of what interest rates can be found. Using the Bankrate.com calculator, for example, you find that a $268,000 mortgage for 30 years at 6 percent interest provides you a monthly payment of about $1,600. Does a $240,000 loan at 7% interest, or a $280,000 loan at 5.5 percent.


The 28 percent and 36 percent thresholds”went off” for a while during the housing bubble of the early 2000s, when important lenders were accepting DTIs of as large as 49 percent, based on Bloomberg Businessweek. The tighter lending standards that followed the bursting of this bubble created 28 percent and 36 percent regular again.

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Eclectic Homes

Guest Choices: Pretty Patterned Chairs

Adding pattern may often feel like a risk, particularly when it comes to your upholstery. If you adore the expression of a solid pattern but have commitment issues, a pretty accent seat (or two) in a fun print might be ideal to match with your neutral couch. Here are 20 bold contenders. — Emily out of Emily A. Clark

Layla Grayce

Iliad Chair Marigold – $1,548

I love the combination of fabrics with this accent chair. I see a pair floating out in the center of the room or anchoring a table.

Cost Plus World Market

Rio Multicolored Ikat Darby Chair – $179.99

This multicolored ikat pattern gives you a lot of color inspiration for the remainder of your room. I would pair it with more impartial upholstery, and pull out some of the brighter colors for couch pillows or curtains.


Dolce Upholstered Accent Arm Chair, Trellis – $199.99

Geometric with sleek lines, this seat is ideal for adding a contemporary touch to your space. A pair of these would look great with a crisp white couch.


Vintage Suzani, Inge Chair

This seat may double as a piece of art with its unique lines. The classic suzani print will include a significant splash of color and pattern to any room.

Ballard Designs

Joselin Chair, Camargo Lattice – $845

This seat can be customized in almost any of Ballard Designs’ fabrics, but I’m partial to the rich caramel gold. The color is excellent for heating up your own space, and also the routine keeps things light and fun.


Multi Kilim Arm Chair – $974.99

Add a traveled look to your room for this chair. Aside from the exceptional shape, it’s some fantastic, rich colors to use.


Swoop Upholstered Accent Chair, Georgeous Pearl – $199.99

This pattern provides a soft palette of colors to inspire a complete room. I picture this easy seat in a bedroom as a comfy sitting spot.


Martha Stewart Fabric Living Room Chair, Lansdale Accent – $1,049

Adding routine to your room does not mean it needs to be colorful. If you are partial to neutrals, then you may still add a pretty pattern with this blossom design in soft colors.

Urban Outfitters

Slipper Chair, Woven Medi Ikat – $399

This is an enjoyable variant of ikat, and this pretty slipper chair comes in three colors.


Select Stitch Folding Chair – $259.99

This not only adds a punch of pattern, but also folds up, making it the perfect extra chair when you have guests.


Petra Chair

The classic form of the chair paired using the tailored skirt makes this a pretty choice for a reading corner or bedroom.

Layla Grayce

Layla Grayce Descanso Chair

This seat can be customized in plenty of different fabrics, but I think this routine with all the sleek lines gives it a regal feel.


Piazza Gingham Chair – $899

This brightly colored gingham seat is a lot of fun. It would make a fantastic lounge chair for a kids’ room or playroom.

Arden Stationary Occasional Chair, Emerald

I adore this contemporary spin on the traditional wingback. This seat can be customized, but I’m partial to the fun, green floral.

The Hickory Chair Furniture Co..

Lindsay Chair

It will not get much sweeter than the usual striped, skirted seat. A pair of these would be ideal in a living room or flanking a console table in an entryway.

Zinc Door

Oly Studio Sophie Lounge Chair

This seat will add instant drama to your space. You can’t go wrong with a classic design in a bold zebra print.


Nate Berkus Marrakesh Clove Slipper Chair – $379.95

A bold ikat pattern provides a worldly feel, and I enjoy the rich, warm tones of the colorway.

Home Decorators Collection

Hazelton Lounge Chair, Orange Paisley – $247

This fun, orange paisley seat is funky and contemporary. It’s fantastic for a room needing some color.

Home Decorators Collection

Ella Arm Chair, Green Flowers – $449

Give your room a feminine touch with this accent chair. I enjoy its quite lines and contemporary floral pattern.

House & Hold

Jennifer Delonge Luxe Child Chair – $399

Even though it’s a kid’s seat, I had to incorporate this chevron attractiveness! It’s small in size but big on style, and it could easily mix into more grownup decor.

Next: 1 Chair + 2 Fabric Patterns = 1 Fabulous Appearance

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Eclectic Homes

Guest Picks: Create a Fun, Brand New Theaters

A workspace can easily become sterile and sterile the most creative person. Obviously, function comes first, but there is no reason your desk area can’t be beautiful and inspiring too. Bright and refreshing colours, luminous metallics, in addition to fun and funky graphics and shapes are on the top of my list for creating a fresh and fun workspace. — Lauren from A Lovely Life


Pie Graph Sticky Notes – $7.50

All these adorably fresh and well-designed sticky notes will keep you organized and serve as eye candy for your area.

The Land of Nod

Between a Rock Lamp Base, Gold – $79

This gold lamp is intended for the small ones, but I want one for my desk! It’s the perfect pop of geometry and gold.

Thrive Home Furnishings

Moore Desk – $2,199

The Moore desk is the best mixture of midcentury style and functional storage. So many desks seem to have another, but this really is the whole package.


Flowers For Bobbsie – $950

These flowers by Lulie Wallace are as full of energy as they are beautiful. Plus they come from the lightest colour palette too!


Primary Clock, Half Light Blue – GBP 75

Simple and simply stunning, this clock is a piece of functional art.


Dip Seat – GBP 395

I really like this chair has a vintage look but is created totally fresh with the dipped paint.


Calling Cards by Honey & Bloom – $12

I really don’t know if I could choose just one of those beautiful calling cards. I believe I would always need to have them on my desk in all their glory.

Muhs Home

SyuRo Rectangular Tin Cans – $56

These copper and brass boxes add immediate glamour to your stored items.


O-Check for Best Hat Medium Pattern Notebook, Black Dot – $10

I am so into polka dots at the moment, so I would definitely love to keep my notes in this dotty journal. Plus, its neutral colour palette goes with whatever.

upon a fold

Thread Lid Box, Antiprism – AUD 12

This is fun and funky multipurpose storage that you can fold yourself for complete statement pieces.

Brown Paper

Candy Pink Notebook – GBP 11.50

This candy pink and metallic gold notebook is just the bee’s knees. Even after writing on the final page, I would keep it around simply to look pretty.


Sleepy Hollow Pencil Cup – $16

I will always have a soft spot in my heart for owls. This little man keeps your pens ready and awaiting all those fantastic ideas.


Zigzag Tray Up in the Air Somewhere

Use this stunning and glitzy handmade tray to corral papers and clutter.


Craspedia Cluster, White by Flores del Sol – $55

You don’t need to worry about forgetting to water this pretty plant — it’s dried! Add a small happy and sunshiny yellow into your area with this cute craspedia.

Secret Holiday & Co..

‘YES’ Affirmation Banner – $45

Hang this near your desk to guide you toward joy.


White Modern Succulent Sculpture by Waterstone Succulents – $18

Following is a succulent you really can’t kill — it’s a solid sculpture. Along with the gold vase takes the cake.


Glitter Marquee Letter LED Night Light by Whirlwind by RAB – $48.50

This small light is sure to provide you bright ideas and lift your spirits on those rainy days.


Party Totem Balloon Tassel, Pink and Orange by The Flair Exchange – $27

Hang this balloon tassel (minus the balloon) in an empty corner for a little glitz and glamour.


Squirreled Away Tape Dispenser – $24

Every desk needs a furry buddy. This little man looks cute and retains your tape for you. What more could you need?


Leather Storage Tote by Gildem – $160

I really like this handmade leather bag for keeping magazines and books or for hiding clutter away.

More: Tour a Shed-Turned-Office in a London Garden

Jess LC

Wells “Be Brave” Printing – $40

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Eclectic Homes

Guest Picks: Creating a Cozy Breakfast Nook

One thing that I’ve always wanted is a comfy, casual area to have breakfast. There’s something about having a nook that appears so magical. Here are a couple of of my favorite bits for creating the perfect space. — Lauren from With Two Mothers

Stylo Furniture and Design

Round Walnut Dining Table – $2,632

This round dining table gives a casual yet classy spot to sit down for a meal.


Country Lifestyle Spindle Back White Dining Chair Place – $124.99

This pair of chairs is the best mixture of clean contemporary lines and traditional form. They are a great transitional pick that will fit right into any fashion area.

Kim Parker Interiors

India Garden Designer Candles – $200

I really like the bright colours and movement on this little pillow. It’s sure to put in a great deal of life to any area.

Ballard Designs

Coventry Three-Piece Corner Upholstered Sectional – $799

Create an instant cozy nook with this upholstered bench from Ballard Designs.

Old Faithful Shop

Dodecahedron Terrarium – $160

Bring the outdoors in with this particular geometric terrarium — an instant conversation piece.


A Collection Of Six Colorful Succulent Plants By Succulents Galore – $18.95

And start your terrarium off with a collection of colorful succulent plants.


Kahler – Mano Storage Jar Small in Green – $59.95

Store your glucose tea or just about anything in this adorable little jar.


Salt And Pepper Shakers Black And White By Romi Ceramics – $48

These salt and pepper shakers are anything but ordinary (in the best way possible).


Reclaimed Rustic Barn Wood Picture Frame by 3 Sisters Nation Shop – $18

Add a rustic touch to your area with these handmade reclaimed wood frames.


Oh Darling Let’s Be Adventurers Screenprinted Poster, Black By FIFIDUVIE – $25

Remind yourself to become more adventurous with this simple little print.


Wren Linocut Hand-Pulled Art Print By Anna See’s Shop – $32

Anna See creates the most beautiful hand-printed birds. I really like the textures and colours of her job.


Lunch Napkin Linen Black Stripe By Little Batch Generation – $11

Simple and traditional striped linen napkins are the perfect match for any dining table.


Square Handle Basket Made To Order By Pigeon Toe Ceramics – $108

This beautiful little bowl is just right for holding your fresh fruit.

Schoolhouse Electric

Blackline Stoneware Teapot – $58

This beautiful teapot has a traditional shape, but the bold stripes add a contemporary twist.


Spare Stripe Mug – $24

I’ve got a serious matter for anything , including this beautiful little mug.

Schoolhouse Electric

Glass Milk Bottle – $20

This glass milk bottle harkens back to a simpler time.

Of Cabbages & Kings

My Egg And Soldiers Set By Takae Mizutani – GBP 23.50

This is the best breakfast set for your little one.

Calla Dinnerware – $3.95

The natural form and simplicity of the dish collection had me at hello.

Eden Pendant Lamp – $49.95

The timeless necklace lamp goes great in any area.


Wooden Mini Bowl Set Of 2 Light Pink And White By Wind & Willow Home – $16

Dipped bowls in quite colours — need I say more?

Next: Breakast Nooks, Sunny Side Up

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