blog/web-journal

By David Bracken. RISMEDIA, May 1, 2010. 

As a consumer with good credit and a 10-year history of paying his mortgage on time, Ed McLaughlin expected that his record would put him in good stead with his bank. But when he approached his lender, Charlotte, N.C.-based Bank of America, about refinancing his existing mortgage or qualifying for a new loan, McLaughlin felt like a brand-new customer just off the street.

“They said new banking laws required that I jump through all the hoops, which I thought was a little odd because my record with Bank of America had been good,” said McLaughlin. “All the new paperwork, all the new guidelines they were now required to administer. All that was going to complicate it.”

McLaughlin wasn’t being singled out – he was simply finding out firsthand how the residential mortgage industry has changed since the housing meltdown. After a period when too many lenders focused just on getting people into homes – and not on whether they could afford them – the pendulum has swung back in the other direction.

The number of mortgage products offered to consumers has shrunk, while the amount of income documentation required of borrowers has increased.  “It’s going back to how things were done 10 years ago,” said Jim Bennison, a senior vice president with Raleigh-based Genworth Mortgage Insurance.

The new landscape can be particularly jarring for borrowers used to the recent go-go years, when some lenders required little proof of a borrower’s income and liabilities and enticed them with a range of exotic loans with variable interest rates.

The underwriting standards for borrowers are now being dictated almost entirely by three government entities that have come to dominate the mortgage market: the Federal Housing Administration, Fannie Mae and Freddie Mac.  A bank today is highly unlikely to issue a mortgage that won’t be guaranteed by one of these three. A few years ago, a buyer might have found the house of her dreams and then worried about how to finance it. Now, getting pre-qualified for a loan should be one of the first steps.

“People need to call a mortgage professional earlier in the process than they think,” said Todd Barbour, vice president of Meridian Residential, a mortgage company in Cary, NC. “The very moment you think, ‘I might want to buy a house,’ someone like me should be the next phone call.” Given how severe the housing downturn has been, Barbour said, many people assume they won’t be able to get a loan. That’s a mistake, he said, because there are good loans available for qualified buyers and interest rates are at historic lows.

One of Barbour’s clients recently purchased a home for $285,000 in Wake Forest, NC. The couple got a 30-year mortgage with an interest rate of less than 5%. “It went crazy smooth for us,” Lauri Moore said. “It was literally a miracle how smooth it went.” The Moores had great credit and made a 20% down payment, something not all buyers are in a position to do.

One option that has become attractive, particularly for first-time home buyers, is FHA loans, which require borrowers to put down just 3.5% if they have a credit score of 580 or above. By comparison, to qualify for a low-rate conventional mortgage, a buyer will need a credit score of about 740. The number of loans being insured by FHA has exploded in the past three years as Wall Street stopped buying up mortgage-backed securities.

FHA loans don’t require a borrower to have private mortgage insurance, but anyone else who can’t put 20% down is typically required to get PMI. For a borrower such as the Moores, PMI would have come to about $200 a month, Lauri Moore said. PMI providers such as Genworth offer borrowers additional benefits such as assistance in the event of unemployment and help in reworking mortgages to help families avoid foreclosure. During the housing boom, many borrowers avoided having to buy mortgage insurance by getting a so-called piggyback loan, which is a second mortgage taken out at the same time as a first mortgage. Today, fewer banks are offering customers piggyback loans, which typically have a higher interest rate than the first mortgage.

Although borrowers should pay close attention to their credit score, that number is just one of several indicators a lender will use in evaluating a borrower. Lenders today want documentation of a borrower’s income for at least the last two years plus information about total debt, which includes any assessments, credit card balances and auto loans as well as how much cash is available for a down payment.

“People have to be organized,” said John Cross, Bank of America’s regional sales executive for North Carolina. “That means keeping copies of your tax records, having access to your bank statements, your W-2s. A little bit more fiscal responsibility has probably been put on the borrower.”

Both first-time home buyers and repeat buyers should expect lenders to take into account what their loan-to-income ratio is. Mark Goldhaber, a Genworth senior vice president, said from 2002 to 2006 it was not unusual to see homeowners whose total debts, including their mortgage payment, took up 55% or more of their income. Today, banks want total debt to be in the 40-45% range, which is in line with historical lending standards.

“A consumer who is educated and informed is really the best underwriter of all,” Goldhaber said. “If you know what you can afford, then you’re not going to get yourself into too much house.”

(c) 2010, The News & Observer (Raleigh, N.C.).  Distributed by McClatchy-Tribune Information Services.

Ever since the original entry to Windsor Palms was obliterated by the Western Expressway (SR429 toll road), gaining access to the subdivision has been somewhat of a challenge for new visitors. Hopefully, the recently re-modeled entrance on Formosa Gardens Boulevard will make life easier:

By Nara Schoenberg. RISMEDIA, May 8, 2010.  Want to make the planet a little greener? Look no farther than your own backyard – or, for that matter, your own front yard.

The U.S. is home to 32 million acres of lawn, or enough to cover the 100 largest U.S. cities almost twice, says Owen Dell, author of Sustainable Landscaping for Dummies. Lawns suck up 270 billion gallons of water a week and burn 800 million gallons of (mower) gas a year. And then there are the pesticides and the chemical-based fertilizers.

“I use this analogy,” Dell says. “If you take care of yourself – exercise, eat right, don’t drink too much alcohol, don’t use drugs – you’re going to have a much better chance of staying healthy. Similarly, if you keep the landscape healthy, whether it’s the lawn or anything else, you’re going to have fewer problems.”

How do you break free of the high-maintenance lawn care cycle? Drawing from interviews with Dell, Tom Christopher, editor of The New American Sustainable Garden (due out next year) and Annie Spiegelman, author of Talking Dirt assembled a list of basic tips to get you started.

1. Don’t overwater. Most people grossly overwater their lawns. Consider getting a free ‘water audit’ if your water company offers one, or just turn the sprinkler off and observe the results. If your grass doesn’t spring back when you step on it in the heat of the afternoon, it’s time to water. Watering four times a week is too much in most parts of the country.

2. Water deeply. It’s better to water deeply than frequently. Many lawns do well with 15 to 20 minutes at a time, once or twice a week. For maximum efficiency, give the water a chance to seep in: Water for 10 minutes, wait 20 minutes and then finish watering.

3. Get adequate coverage. If your sprinkler doesn’t cover a spot, you end up with a dry area or an overwatered lawn.

4. Give the soil breathing room. Aerate your lawn once or twice a year in the spring or fall with a gas - or foot-powered aerator. This loosens the roots and lets water and fertilizers penetrate.

5. Try a lush look. If you keep your grass 3 inches high, it will ‘shade out’ weeds, denying them the sun they need to grow and take over your lawn.

6. Reduce your lawn size. Less lawn means less watering. Consider a border planted with low-maintenance ground cover instead of grass.

7. Kick the chemical fertilizer habit. Don’t pump too many nutrients into your lawn. One fertilization with an organic fertilizer in early fall is plenty.

8. Go natural. Insecticides with ingredients such as vinegar and orange oil are sold at many nurseries and boiling water kills weeds.

9. Keep grass clippings. Rather than removing them, rake them gently over your lawn. They’re free and rich in the plant nutrient nitrogen.

10. Consider low-maintenance grass. Ask your local university extension program or agriculture department to recommend a low-maintenance grass (options include fine fescues and buffalograss) that grows well in your region. These easy-going grasses are designed for your region and will thrive with minimal water and mowing.

(c) 2010, Chicago Tribune. Distributed by McClatchy-Tribune Information Services.

Interesting how things work in nature…

By Amy Hoak. RISMEDIA. 2010. Instead of playing the trade-up game, more homeowners are staying in their homes, upgrading kitchens and baths and building additions to accommodate their needs instead of moving into a bigger house, but there are also some early signs of an improving real estate market, according to a new survey of architecture firms.

More architects say they’re seeing demand for and inquiries about home-remodeling projects, including kitchen and bath upgrades and home additions. And an increasing percentage of architects say business conditions in the first-time buyer and affordable home market also improved in the fourth quarter of 2009, compared with the fourth quarter a year earlier, according to the American Institute of Architects’ Home Design Trends Survey. The survey of 500 residential architecture firms is conducted each quarter.

A net 28% of architects responding to the survey said they’re seeing greater interest among homeowners for kitchen and bath remodels, up from -16% a year ago, and a net 21% said demand for additions and alterations is improving, versus -14% a year ago. The survey figures are computed as the percentage of respondents reporting an improvement in business conditions minus those reporting a decrease.

Meanwhile, a net -4% of the architects surveyed said the market for homes for first-time buyers is improving, up from -65% a year earlier. A net -31% said the market for move-up homes is improving, compared with -71% a year ago.

“It’s still too early to think the residential market has fully recovered, but there are two encouraging signs – overall business conditions are far better than they were a year ago at this time, and we are seeing improvement in those housing sectors that need to lead a broader improvement in the housing market: remodeling and alterations of existing homes, and at the entry-level of the new construction market,” said Kermit Baker, chief economist of the American Institute of Architects.

Baker said homeowners are making improvements thoughtfully, not banking on recouping the entire cost at resale or over-improving with upscale features as they might have several years ago. And projects are typically smaller in scope these days. “The mentality is evolving that bigger isn’t better for my home, from an investment perspective,” Baker said.

As for first-time home buyers, Baker said that conditions are likely improving due to the first-time home buyer tax credit, low mortgage rates and the ability of these first-timers to buy a home without having to sell an existing home first.

For the most part, kitchens are being upgraded with practical improvements and features to make the space more usable. “A lot of the upscale stuff, like double appliances – two dishwashers or two refrigerators – or over-the-top appliances seem to have disappeared,” Baker said.

The five most popular kitchen products and features, according to the survey include:

- Recycling center, a designated place to put cans, papers, etc., which could be in the form of a nook or even part of the lower cabinetry
- Larger pantry space
- Renewable flooring materials
- Renewable countertop materials
- Computer area/recharging stations, dedicated to such tasks as recharging laptops, cell phones and PDAs.

The same desire for practicality and less glitz can be found in the bathroom. People are moving away from steam showers and towel-warming drawers and racks, and instead focusing on features that will help them better control their utility costs, Baker said.

The five most popular bathroom products and features include:

- Water-saving toilets
- Radiant heated floors
- Accessibility/universal design, or features that are adaptable and allow homeowners to age in place
- LED lighting
- Doorless showers.

(c) 2010, MarketWatch.com Inc.  Distributed by McClatchy-Tribune Information Services.

This article abridged from RISMEDIA. 2010.

HomeGain, a leading website that connects real estate agents with home buyers and sellers recently announced the results of its Green home improvement survey.

Receiving responses from nearly 1,000 real estate agents and brokers nationwide, HomeGain configured a list of the top nine do-it-yourself (DIY) Green home improvements that cost under $300 and that benefit sellers most when they sell their homes.

The top nine Green home improvements that real estate professionals recommend to home sellers based on cost and return on investment to the sellers include:

1. Plant trees and shrubs
2. Replace air filters
3. Green home staging
4. Weather strip and caulk doors and windows
5. Install programmable thermostats
6. Install low flow shower heads
7. Use auto turn-off power strips
8. Install CFL (compact fluorescent) or LED lights
9. Paint with low VOC (low toxicity) paint

Planting native trees and plants in the perimeter of a home for sale ranks as the top suggested green home improvement, recommended by 65% of agents and brokers, costing under $150 and returning a value of nearly $400 to a home’s selling price, which is a 284% return on investment (ROI).

“Our survey shows that going green is not only good for the environment, but makes dollars and cents for home sellers,” stated Louis Cammarosano, General Manager at HomeGain. “Buyers want energy efficient homes and appreciate the aesthetics of natural vegetation and are willing to pay for these features.”

Recently completed, the re-modeled Rolling Hills Estates fountain is greatly improved:

On the corner of Formosa Gardens Boulevard and Livingston Road.

Currently under construction just behind Red Lobster on Formosa Boulevard:

As far as we can tell, this will be a Buffalo Wild Wings restaurant. It will be good to have a little more choice in where to eat out locally. Watch this space for further developments.

By Terri Bennett. RISMEDIA, March 20, 2010. Water is our planet’s most valuable resource. Providing enough clean water for every person will be one of the biggest challenges we face in the coming decades.

Americans use more water per person than any other country. On average, each one of us uses about 100 gallons of drinking water a day, and almost half of that is in the bathroom.

For many of us, the toilet is where we flush away most of our water. Toilets made before 1992 use more than 3 gallons of water with every flush. New, improved low-flow toilets use just 1.6 gallons of water per flush. Making the switch can save 4,000 gallons of water every year.

If you’re not quite ready to make the upgrade, there’s a free alternative. Make a water displacement device for a regular toilet tank using a plastic half-gallon jug. Put some gravel or sand in the bottom of the jug and fill it with water. Place the jug in the tank away from the flushing mechanism. This no-cost solution will save you a half-gallon of water every time you flush.

A low-flow showerhead is another easy way to conserve water and save money. These water-conserving devices use air to create water pressure, saving up to 3 gallons of water every minute. That’s 11,000 gallons of water a year for every person in your home who takes a daily 10-minute shower. Taking shorter showers will conserve even more.

To maximize your water conserving efforts, look for fixtures with the WaterSense logo. This certifies that the product meets the Environmental Protection Agency’s criteria for water efficiency.

Some low-flow fixtures include a built-in valve that will shut off the water while maintaining the water temperature-ideal for those who like to shave in the shower. When you install a low-flow showerhead you’ll be using less water, but don’t forget about the energy savings you’ll create by heating less water.

If you find yourself waiting more than a few seconds for hot water when you turn on the faucet, investing in a hot water recirculator will save you both water and time. These devices keep hot water circulating through the pipes in your home so it’s ready on demand.

The best pump system is one that has a temperature-controlled bypass valve and a timer on the pump that can be programmed to operate only during the times you need it most. A hot water recirculator ranges from $200 to $600 depending on the model and installation.

Even the simple act of turning off the water while you brush your teeth can save more than 500 gallons a year for every person in your home.

And adding a $2 aerator on every faucet can save thousands more gallons of water by reducing the flow of water to less than 2 gallons a minute.

Do your part and use less water in the bathroom. It’s easy and relatively inexpensive to make some simple changes that will conserve our most precious natural resource for tomorrow and beyond.

(c) 2010, The Charlotte Observer (Charlotte, N.C.). Distributed by McClatchy-Tribune Information Services.

Evaporation or Leak

It could be a combination of both. 

However, if the suspicion is more than just the simple Florida heat, then the best way to find out is to have a good pool inspection.  This involves more than just a visual view of the above ground plumbing. It means putting a diver in the water to do a dye test. 

The shot of this diver was taken during a recent pool inspection that came about as the result of a certified home inspection involved with a resale home about to change hands.

It’s a good idea to do this every once in awhile as it can come as a complete surprise how much water can be lost due to a few small pin holes.