Home Maintenance Tip-Keeping your water Heater Fit

Most people don't give much thought to their water heater - they just turn on the faucet and expect hot water to come out. Water heaters are relatively maintenance free, and you can keep your water heater in peak operating condition just by performing two simple maintenance tasks every six months: test the pressure valve and then flush the tank.

If the pressure release valve is not operating properly, the tank can potentially over pressurize and explode. Flushing the tank prevents sediment build up, which can reduce your water heater's energy efficiency and clog your water lines. Consult your owner's manual or other maintenance guide for instructions on how to safely perform these maintenance tasks.

Biggest Credit Myths, Mistakes, and Misconceptions

Good credit is well worth the effort it takes to both achieve and preserve it. If you have good credit, the following tips will help you keep it that way. If you are looking to improve your credit, however, now is the time to get started. Give us a call. We'll review your credit and find out exactly where you stand. In the meantime, if you plan on entering into a loan transaction in the next 6 to 12 months, you simply cannot afford 

to make the following credit mistakes:

Don't fall behind on existing accounts. This includes your mortgage and car payments. One 30-day late can cost you anywhere from 30-80 points or more depending on the other factors being reported on your credit reports.

Don't pay off old collections or charge-offs during the loan process. Paying collections will decrease your credit score immediately due to the "date of last activity" becoming recent. If you want to pay off old accounts, do it through closing, and make sure that 1) you validate that the debt is yours, and 2) the creditor
agrees to give you a letter of deletion.

Don't close credit card accounts. If you close a credit card account, it will appear to FICO that your debt ratio has gone up.  Also, closing a card will affect other factors in the score such as length of credit history. If you have to close a credit card account, do it after closing, and make sure that it is an account you’ve opened more recently. Remember, 10% of your credit score is made up of your Mix of Credit, so it is important that you have at least 1-2 major credit cards open and in good standing.

Don't max out or overcharge your credit accounts. This is the fastest way to bring about an immediate drop of 50-100 points in your credit score. Try to keep your credit card balances below 30% of their available on your monthly statement, and especially during the loan process. If you decide to pay down balances, do it across the board. Meaning, make an extra payment on all of your cards at the same time.

Don't consolidate your debt onto 1 or 2 credit cards. It seems like it would be the smart thing to do; however, when you consolidate all of your debt onto one card, it appears that you are maxed out on that card, and the system will penalize you as mentioned above. If you want to save money on credit card interest rates, wait until after closing.

Don't do anything that will cause a red flag to be raised by the scoring system. This would include adding new accounts, co-signing on a loan, or changing your name or address with the bureaus. The less activity on your reports during the loan process, the better.

Don't do it alone. If you feel that the credit challenges you're facing are too much, or you don't have enough time to do the work necessary to improve your own credit, don't lose hope and give up. Give us a call. We can help. In many cases, small changes to your credit profile could yield big results that could save you thousands of dollars on your mortgage. However, if professional credit repair does become necessary, we'll gladly provide you with a referral to an experienced professional credit repair specialist you can trust.  

Stay tuned for more great credit tips!

The Times They Are a Changing What’s Ahead for Home Loans in 2010

This year could bring significant changes from 2009 for those seeking home loans. Over the last year, home prices fell to 2003 and earlier levels in many parts of the country. In addition, home loan rates declined to the lowest levels on record and this combination led to the highest home affordability levels ever recorded. Here's a recap of what happened in 2009 and what you need to know for the year ahead.

Would You Like a Sweetener with that Rate?


Interest rates throughout 2009 were artificially low. That's because in late 2008, the Federal Reserve put into place a program for purchasing Mortgage Backed Securities with the intention of lowering mortgage rates. They were successful with reported rates byFreddie Mac falling below 5.00% several times in 2009.

Without this program mortgage rates would have been at least 1.00% higher, and potentially even higher than that. Did you know that a change of 1% in a home loan rate impacts the amount someone can borrow by roughly 10%? For example, if rates are in the low 5.00% range today and they shoot up to the low 6.00% range, $250,000 home buyers may become $225,000 home buyers.

Look for rates to return to 2008 and previous levels as the Fed ends the program on March 31, 2010. While rates will not immediately increase to 6.00% or higher, know that without additional intervention, rising rates are inevitable. Expect that under worst case scenarios, rates could dance around the 7.00% range.

Show Me Your Docs


Contrary to what you may see or hear in the media, money is widely available for people who want to finance their homes. There is one caveat, though. People need to be able to demonstrate that they qualify for the loan amount they are pursuing and that they have been willing to repay debt they have accepted in the past.
To obtain financing today, a borrower needs to supply the lender with all documentation pertaining to their income, liquid assets and potentially items related to their credit reporting. The best preparation path to follow is to gather most recent paystubs for 30 days of earnings, two years W-2s with complete tax returns and three months statements, all pages, for any liquid assets used for qualifying.

The free wheeling days of borrowing whatever people thought they could repay are gone. While some exceptions may be granted for strong compensating factors, total debt to income level will be capped at 45%.
If you haven't checked out your credit reports recently, now is a good time to do so if you plan on seeking financing in the next 12 months. You can pull up your reports for free atAnnualCreditReport.com. Examine your reports for any inaccuracies and work to get them corrected prior to seeking financing. You can also seek assistance from your mortgage professional.

Have We Hit a Bottom in Housing?


If you simply look at the data that is reported, one could surmise that the bottom in U.S. home prices was hit in 2009. One nationally respected index for home price reporting, theS&P/Case-Shiller Home Price Indices, indicates that home prices turned for the better around mid-year in 2009.

While all markets are different and some may continue to show signs of weakness, most communities have demonstrated strength and should continue to do so. However, some potential headwinds do exist for the second and third quarter of 2010, following the expressed expiration dates of several stimulus programs: The Mortgage Backed Securities purchase program and home buyer tax credits, both of which are directed at the housing and the mortgage markets.

Foreclosures and short sales will also continue to influence many of the hardest hit markets as unemployment and resetting adjustable rate mortgages weigh on distressed homeowners.

Dates to Remember


Two dates lie on the horizon that will impact interest rates and potentially home prices. The first program scheduled to end is the Federal Reserve's program for purchasing Mortgage Backed Securities. Announced in November of 2008, the Fed began purchasing $1.25 trillion in mortgage bonds in 2009 which will culminate at the end of March. As the intention and result of this program was to lower rates, mortgage rates will likely begin to rise after the program concludes.
In addition, April 30, 2010 is the last day to enter into a home purchase contract and still potentially qualify for a federal income tax credit of up to $8,000 for first-time home buyers and up to $6,500 for repeat home buyers. The credit can be claimed only on contracts that close by June 30, 2010.

Act Now...Not Later


While no one knows for certain what the future holds, one thing does appear clear. Home loan rates and home prices both will be higher in the future. If you or anyone you know is looking to purchase or refinance a home, waiting could be costly!

7 DEADLY HABITS YOU NEED TO BREAK NOW

From The Dr. Oz Show www.doctoroz.com

We all make resolutions as that glittery ball falls in Times Square. We vow to eat better, drink less, exercise more – and then we don’t follow through. But it turns out there are smaller habits that are easier, and more important, to break. These 7 deadly sins are taking years off our lives and we don’t even know it. Make this year the one in which you made 7 small changes that can add a decade (yes, a decade) to your life.

Deadly habit 1: Not Stretching In The Morning

Moving your body and releasing stress first thing is critical to preparing for a day where you are in control of your body.

Replacement: The 7-Minute Stretch

You can come up with your own or try out the routine Dr. Oz does first thing when he gets out of bed.  It will center you for the day ahead and help you focus on taking good care of yourself.

Deadly Habit 2: Not Eating Breakfast

If you don’t eat right when you wake up, your body senses a famine is coming and slows your metabolism to compensate. Then, when your body is presented food later, it’s ravenous and wants to pack it in, leading to bingeing with a slow metabolism – a recipe for weight gain.

Replacement: Have A Small Breakfast Ready To Go

Dr. Oz ‘s Magical Breakfast Blaster (http://www.doctoroz.com/videos/magical-breakfast-blaster) from YOU: On a Diet is a smoothie of blueberries, bananas, psyllium husks, flax, soy protein, and honey. The fiber in the psyllium and flax helps regulate your metabolism throughout the day. Or try peanut butter on whole wheat bread. It doesn’t have to be big, just a little metabolic kickstart.

Deadly Habit 3: Running Late

Being perpetually late adds unnecessary stress to your life and takes control away from you, giving it to the people you disappoint and to the clock. That added stress, in turn, can lead to chronic inflammation and high blood pressure, which are linked to all kinds of diseases.

Replacement: Set Your Watch 5 Minutes Ahead

It’s a simple trick that will help you make appointments, get out of the rush rut, and lower stress.

Deadly Habit 4: Mindless Eating

Hitting the vending machine at 3 o’clock in the afternoon, raiding the pantry several times a day, eating through a bag of chips before we even realized we’ve opened them. We’re all guilty of eating without thinking about it sometimes. Problem is that often we are eating out of boredom, for a distraction, or to fill a hunger that can’t be met by food. And when we fill up on junk food, we add unhealthy calories, gaining fat and stressing our liver.

Replacement: Mindful Eating

Everything we eat should nourish us, and the ability to focus on that will help us all meet our goals of losing or maintaining weight. A simple solution is to pre-plan meals, especially snacks. On Sunday night, pack a variety of healthy snacks—12 almonds, one string cheese, 2 tablespoons of cranberries, 5 dark chocolates, 18 mini pretzels—in individual plastic bags for the week ahead. At 3pm on any day, you can reach for a baggie and know you are giving your body a good boost.

Deadly Habit 5: Becoming A Couch Potato

Flopping down in front of the TV at the end of a long day can feel good, but it’s actually doing a world of hurt to your body. Your metabolism still needs a workout as the evening draws to a close. Without it, your muscle turns to fat. Every decade we increase our percentage of fat by 5%.

Replacement: Half Hour Of Movement

Do squats while you watch TV, play with the kids, rearrange the closet, take a walk, do dishes, have a family dance party. Just figure out a way to get in a half hour of movement after dinner to give your metabolism something to do.

Deadly Habit 6: Disconnecting

So many of us pull away from the people who support us at exactly the times we need them most—when we’re going through a divorce, facing a financial crisis, feeling bad about our bodies. Adding the stress of bottled up emotions to already challenging times only leads to health problems down the road.

Replacement: Connecting

Human beings provide a social web that holds us all up. So call your mother, get back in touch with a college friend, make a plan to have coffee with an old work pal, send a thank you note to your high school teacher. If you surround yourself with support, you can weather the bad times with less stress and add years to your life.

Deadly Habit 7: Not Having A Bedtime

Kids have to be in bed at 8, but adults fill their evenings with TV, to-do lists, chores and more, falling into bed at a different (and later) time each night. That irregularity not only means fewer hours of sleep, but a lesser quality of sleep, both of which are causes of weight gain and disease.

Replacement: Planning A Bedtime

All of us need 7 and a half hours of sleep nightly to maintain good health, but sleeping well comes easy to few of us. It actually takes practice and routine, and it’s one of the most important things you can do for yourself. Count back 7 hours from when you wake up and make that your bedtime. If it’s 10:30, then you should be heading to bed at 10pm.

7 Smart Strategies for Remodeling Your Kitchen

When planning a kitchen remodeling project, keep the same footprint, add storage, and design adequate lighting so that you preserve value and keep costs on track.

If you're contemplating a kitchen remodel, you’re also weighing a considerable investment. But a significant portion of the upfront costs may be recovered by the value the project brings to your home. Kitchen remodels in the $50,000 range recouped 76% of the initial project cost at the home’s resale, according to recent data from Remodeling Magazine’s Cost vs. Value Report. To make sure you maximize your return, consider these seven smart kitchen remodeling strategies.

1. Establish your priorities

Simple enough? Not so fast. The National Kitchen and Bath Association (NKBA) recommends spending at least six months planning before beginning the work. That way, you can thoroughly evaluate your priorities and won’t be tempted to change your mind during construction. Contractors often have clauses in their contracts that specify additional costs for amendments to original plans. Planning points to consider include:

• Avoid traffic jams. A walkway through the kitchen should be at least 36 inches wide, according to the NKBA. Work aisles for one cook should be a minimum of 42 inches wide and at least 48 inches wide for households with multiple cooks.
• Consider children. Avoid sharp, square corners on countertops, and make sure microwave ovens are installed at the heights recommended by the NKBA—3 inches below the shoulder of the principle user but not more than 54 inches from the floor.
• Access to the outside. If you want to easily reach entertaining areas, such as a deck or a patio, factor a new exterior door into your plans.

Because planning a kitchen is complex, consider hiring a professional designer. A pro can help make style decisions and foresee potential problems, so you can avoid costly mistakes. In addition, a pro makes sure contractors and installers are sequenced properly so that workflow is cost-effective. Expect fees around $50 to $150 per hour, or 5% to 15% of the total cost of the project.

2. Keep the same footprint

No matter the size and scope of your planned kitchen, you can save major expense by not rearranging walls, and by locating any new plumbing fixtures near existing plumbing pipes. Not only will you save on demolition and reconstruction, you’ll greatly reduce the amount of dust and debris your project generates.

3. Match appliances to your skill level

A six-burner commercial-grade range and luxury-brand refrigerator might make eye-catching centerpieces, but be sure they fit your lifestyle, says Molly Erin McCabe, owner of A Kitchen That Works design firm in Bainbridge Island, Wash. “It’s probably the part of a kitchen project where people tend to overspend the most.”

The high price is only worth the investment if you’re an exceptional cook. Otherwise, save thousands with trusted brands that receive high marks at consumer review websites, likewww.ePinions.com and www.amazon.com, and resources such as Consumer Reports.

4. Create a well-designed lighting scheme

Some guidelines:

• Install task lighting, such as recessed or track lights, over sinks and food prep areas; assign at least two fixtures per task to eliminate shadows. Under-cabinet lights illuminate clean-up and are great for reading cookbooks. Pendant lights over counters bring the light source close to work surfaces.

• Ambient lighting includes flush-mounted ceiling fixtures, wall sconces, and track lights. Consider dimmer switches with ambient lighting to control intensity and mood.

5. Focus on durability

“People are putting more emphasis on functionality and durability in the kitchen,” says McCabe. That may mean resisting bargain prices and focusing on products that combine low-maintenance with long warranty periods. “Solid-surface countertops [Corian, Silestone] are a perfect example,” adds McCabe. “They may cost a little more, but they’re going to look as good in 10 years as they did the day they were installed.”

If you’re not planning to stay in your house that long, products with substantial warranties can become a selling point. “Individual upgrades don’t necessarily give you a 100% return,” says Frank Gregoire, a real estate appraiser in St. Petersburg, Fla. “But they can give you an edge when it comes time to market your home for sale” if other for-sale homes have similar features.

6. Add storage, not space

To add storage without bumping out walls:

• Specify upper cabinets that reach the ceiling. They may cost a bit more, but you’ll gain valuable storage space. In addition, you won’t have to worry about dusting the tops.

• Hang it up. Install small shelving units on unused wall areas, and add narrow spice racks and shelves on the insides of cabinet doors. Use a ceiling-mounted pot rack to keep bulkier pots and pans from cluttering cabinets. Add hooks to the backs of closet doors for aprons, brooms, and mops.

7. Communicate effectively—and often

Having a good rapport with your project manager or construction team is essential for staying on budget. “Poor communication is a leading cause of kitchen projects going sour,” says McCabe. To keep the sweetness in your project:

• Drop by the project during work hours as often as possible. Your presence assures subcontractors and other workers of your commitment to getting good results.
• Establish a communication routine. Hang a message board on-site where you and the project manager can leave each other daily communiques. Give your email address and cell phone number to subs and team leaders.
• Set house rules. Be clear about smoking, boom box noise levels, which bathroom is available, and where workers should park their vehicles.

Consumers spend more money on kitchen remodeling than any other home improvement project, according to the Home Improvement Research Institute, and with good reason. They’re the hub of home life, and a source of pride. With a little strategizing, you can ensure your new kitchen gives you years of satisfaction.

John Riha has written six books on home improvement and hundreds of articles on home-related topics. He’s been a residential builder, the editorial director of the Black & Decker Home Improvement Library, and the executive editor of Better Homes and Gardens magazine. His standard 1968 suburban house has been an ongoing source of maintenance experience.

By: John Riha

Published: September 21, 2009 From www.Houselogic.com