Saturday, September 1, 2007
Saturday, August 25, 2007
How FHA Could Help BorrowersRefinance and Avoid Foreclosure
By Deborah Solomon From The Wall Street Journal Online
As the subprime-mortgage crisis ripples through the broader housing market, the Bush administration is eyeing an often overlooked federal mortgage insurer to help low- and middle-income homeowners avoid foreclosure.
President Bush has balked at allowing mortgage giants Fannie Mae and Freddie Mac to buy more mortgages for their portfolios to ease the credit crunch triggered by rising defaults on home loans to borrowers with poor credit. But he said earlier this month that he supports giving the Federal Housing Administration more flexibility to help those facing foreclosure refinance their homes.
• What's Happening:
The Bush administration is eyeing the Federal Housing Administration, an often-overlooked federal mortgage insurer, to help low- and middle-income homeowners avoid foreclosure.
• How It Would Work:
The FHA could offer refinancing options to homeowners, including those who aren't yet in default, but who risk falling behind on payments that jump when rates are reset.
• What Needs to Happen First:
The effort is likely to jump-start legislation in Congress to give the housing authority more tools to assist homeowners. Senate Banking Chairman Christopher Dodd said recently that FHA reform will be among his top priorities, and a bill passed by committee is set to head to the full House this fall.
Treasury Secretary Henry Paulson, meanwhile, has instructed staff to work with the Housing and Urban Development department, which oversees FHA, to find ways to help individuals caught in the fallout of the credit crunch.
The administration is looking to FHA to offer refinancing options to homeowners, including those who aren't yet in default or foreclosure, but who are at risk of falling behind in their payments on mortgages that were structured to offer payments that were very low at first but then escalated.
The effort is likely to jump-start legislation in Congress to give the housing authority more tools to assist homeowners. Senate Banking Chairman Christopher Dodd (D., Conn.), said recently that FHA reform will be among his top priorities when Congress returns from its August recess. The House Financial Services Committee passed a bill in June that is expected to head to the full House this fall.
For decades, the New Deal-era agency was used by low- and middle-income home buyers who had little or poor credit and would have trouble getting a loan in the primary market. The FHA didn't originate loans, but insured them against default by somewhat risky buyers, giving lenders an incentive to issue a mortgage.
In recent years, the agency lost market share as the market for subprime loans exploded and home buyers of all income levels were offered a range of exotic loan products, such as no-money-down mortgages and interest-only payments. While FHA-insured loans once accounted for roughly 15% of the mortgage market, that number has fallen below 5%.
But many buyers who got subprime loans are beginning to have trouble making their mortgage payments as the attractive initial "teaser" interest rates are reset at much higher levels. While many of those buyers believed they could refinance their loans, that has become much harder as mortgage lenders tighten their standards in the face of defaults and foreclosures. The Center for Responsible Lending estimates as many as 2.2 million loans will reset over the next two years.
FHA says it is constrained from doing more now because of limits on the size of the loans it can back and some requirements that borrowers must meet. While its refinancing business has picked up and the agency expects to refinance about 120,000 loans this year, FHA officials say they could easily double that amount if given greater flexibility.
Among the options being discussed in Congress is eliminating or reducing the required 3% down payment, raising the size of the loans FHA can insure to as much as $417,000 from $362,790, and being able to charge insurance premiums based on a borrower's risk instead of a one-size-fits-all rate.
Federal Housing Commissioner Brian Montgomery said the current rules effectively prevent FHA from helping borrowers in high-cost states, such as California and New York. Most of the loans it insures are in places such as Texas and the Midwest.
For the Bush administration, backing FHA reform offers a way to straddle the growing calls for government assistance to those caught in the subprime mess without advocating a financial bailout.
Fannie and Freddie, backed by a host of Democratic lawmakers, have argued they could provide liquidity to the rattled housing market if allowed to grow their portfolios beyond strict limits.
Their portfolios are capped in part because of accounting scandals at the government-sponsored entities and Mr. Bush has said Congress should pass long-awaited reforms that would tighten oversight of Fannie and Freddie before allowing them to grow.
Today's Rates
30 yr fixed mtg 6.17%
30 yr fixed jumbo mtg 7.13%
15 yr fixed mtg 5.79%
$30K home equity loan 8.47%
7/1 ARM 6.27%
$30K HELOC 7.96%
Still, an administration official said the government is sensitive to the need to help minimize "collateral damage" from the subprime woes, such as massive foreclosures that could hit certain neighborhoods hard and affect property values broadly. To that end, Treasury and HUD are looking to find ways to assist borrowers who are creditworthy, but who got caught in a pinch and are facing higher mortgage payments than they can afford.
One challenge for the administration is trying to identify borrowers who are likely to get hit with a change in their loan payment -- known as a reset -- that could force them to default on their mortgage, and then figuring out ways to help them refinance. Among the possible options are for government agencies such as FHA or Fannie Mae and Freddie Mac to refinance some of those loans at a lower interest rate.
But not everyone is convinced, and FHA reform may run into trouble in the Senate. Alabama Sen. Richard Shelby, the ranking Republican on the Senate Banking Committee, has expressed concern about expanding FHA, saying it could ultimately hurt taxpayers.
"One lesson learned from the current pattern of defaults and delinquencies in the subprime market is that those borrowers with little or no equity in their home will be the most likely to fail," he said at a hearing last month. "We must approach any attempt to expand the program or lower the program's standards with great caution."
As the subprime-mortgage crisis ripples through the broader housing market, the Bush administration is eyeing an often overlooked federal mortgage insurer to help low- and middle-income homeowners avoid foreclosure.
President Bush has balked at allowing mortgage giants Fannie Mae and Freddie Mac to buy more mortgages for their portfolios to ease the credit crunch triggered by rising defaults on home loans to borrowers with poor credit. But he said earlier this month that he supports giving the Federal Housing Administration more flexibility to help those facing foreclosure refinance their homes.
• What's Happening:
The Bush administration is eyeing the Federal Housing Administration, an often-overlooked federal mortgage insurer, to help low- and middle-income homeowners avoid foreclosure.
• How It Would Work:
The FHA could offer refinancing options to homeowners, including those who aren't yet in default, but who risk falling behind on payments that jump when rates are reset.
• What Needs to Happen First:
The effort is likely to jump-start legislation in Congress to give the housing authority more tools to assist homeowners. Senate Banking Chairman Christopher Dodd said recently that FHA reform will be among his top priorities, and a bill passed by committee is set to head to the full House this fall.
Treasury Secretary Henry Paulson, meanwhile, has instructed staff to work with the Housing and Urban Development department, which oversees FHA, to find ways to help individuals caught in the fallout of the credit crunch.
The administration is looking to FHA to offer refinancing options to homeowners, including those who aren't yet in default or foreclosure, but who are at risk of falling behind in their payments on mortgages that were structured to offer payments that were very low at first but then escalated.
The effort is likely to jump-start legislation in Congress to give the housing authority more tools to assist homeowners. Senate Banking Chairman Christopher Dodd (D., Conn.), said recently that FHA reform will be among his top priorities when Congress returns from its August recess. The House Financial Services Committee passed a bill in June that is expected to head to the full House this fall.
For decades, the New Deal-era agency was used by low- and middle-income home buyers who had little or poor credit and would have trouble getting a loan in the primary market. The FHA didn't originate loans, but insured them against default by somewhat risky buyers, giving lenders an incentive to issue a mortgage.
In recent years, the agency lost market share as the market for subprime loans exploded and home buyers of all income levels were offered a range of exotic loan products, such as no-money-down mortgages and interest-only payments. While FHA-insured loans once accounted for roughly 15% of the mortgage market, that number has fallen below 5%.
But many buyers who got subprime loans are beginning to have trouble making their mortgage payments as the attractive initial "teaser" interest rates are reset at much higher levels. While many of those buyers believed they could refinance their loans, that has become much harder as mortgage lenders tighten their standards in the face of defaults and foreclosures. The Center for Responsible Lending estimates as many as 2.2 million loans will reset over the next two years.
FHA says it is constrained from doing more now because of limits on the size of the loans it can back and some requirements that borrowers must meet. While its refinancing business has picked up and the agency expects to refinance about 120,000 loans this year, FHA officials say they could easily double that amount if given greater flexibility.
Among the options being discussed in Congress is eliminating or reducing the required 3% down payment, raising the size of the loans FHA can insure to as much as $417,000 from $362,790, and being able to charge insurance premiums based on a borrower's risk instead of a one-size-fits-all rate.
Federal Housing Commissioner Brian Montgomery said the current rules effectively prevent FHA from helping borrowers in high-cost states, such as California and New York. Most of the loans it insures are in places such as Texas and the Midwest.
For the Bush administration, backing FHA reform offers a way to straddle the growing calls for government assistance to those caught in the subprime mess without advocating a financial bailout.
Fannie and Freddie, backed by a host of Democratic lawmakers, have argued they could provide liquidity to the rattled housing market if allowed to grow their portfolios beyond strict limits.
Their portfolios are capped in part because of accounting scandals at the government-sponsored entities and Mr. Bush has said Congress should pass long-awaited reforms that would tighten oversight of Fannie and Freddie before allowing them to grow.
Today's Rates
30 yr fixed mtg 6.17%
30 yr fixed jumbo mtg 7.13%
15 yr fixed mtg 5.79%
$30K home equity loan 8.47%
7/1 ARM 6.27%
$30K HELOC 7.96%
Still, an administration official said the government is sensitive to the need to help minimize "collateral damage" from the subprime woes, such as massive foreclosures that could hit certain neighborhoods hard and affect property values broadly. To that end, Treasury and HUD are looking to find ways to assist borrowers who are creditworthy, but who got caught in a pinch and are facing higher mortgage payments than they can afford.
One challenge for the administration is trying to identify borrowers who are likely to get hit with a change in their loan payment -- known as a reset -- that could force them to default on their mortgage, and then figuring out ways to help them refinance. Among the possible options are for government agencies such as FHA or Fannie Mae and Freddie Mac to refinance some of those loans at a lower interest rate.
But not everyone is convinced, and FHA reform may run into trouble in the Senate. Alabama Sen. Richard Shelby, the ranking Republican on the Senate Banking Committee, has expressed concern about expanding FHA, saying it could ultimately hurt taxpayers.
"One lesson learned from the current pattern of defaults and delinquencies in the subprime market is that those borrowers with little or no equity in their home will be the most likely to fail," he said at a hearing last month. "We must approach any attempt to expand the program or lower the program's standards with great caution."
Friday, August 24, 2007
About Credit Scores....
Question: You always seem to be advising readers with poor or just OK credit on how to boost their credit scores. What if a person has no credit-card debt, no bad marks on their credit report, no other debt besides car and house, and a credit score of 769? How do I get my credit score into the 800s?
Answer: A score of 769 is extremely good. Congratulations, you obviously know how to handle credit. But to try to push your score to 800 and beyond would be sweating the small stuff. A core of 800-plus won't get you a lower rate or better terms than you can obtain with a 769, so why bother? In the words of a famous Chicagoan, forgetaboutit.
Q: My credit score hovers just below 800, and I have been trying to figure out what to do to get it over 800 simply as point of personal pride. It won't make any difference on my rates, just in how I rate myself.
A: The scoring programs are so intricate -- and somewhat different for each of the major credit depositories -- that it is impossible for me and anyone else to give this kind of advice without first seeing your score and the explanation codes that go along with it. The key lies in the explanation of why you may not have scored as well as you could. Once you see what the program has to say, go from there.
But honestly, you are really wasting your time. A credit score is based on a snapshot of your credit record on a particular day and hour. Since the information in your file changes on at least a monthly basis -- and possibly more frequently -- a small move this week could be offset by something next week.
Therefore, I say take pride in your almost 800 and leave it at that. You are one of the few, the brave, the mighty!
Q: I have been seeing a Countrywide ad on TV in which it is advertised that the borrower pays no closing costs, appraisal and other costs associated with the refinance of a home. Normally this would amount to about $4,500. Of course, this is offered through its retail branches only. Are they servicing the loan until their "costs" are recaptured? Or are they limiting this offer to someone with a 750 credit score (exaggeration intended) and then offering a client with 749 or below a different loan at a much higher rate with "some" closing costs? Smoke and mirrors or bait and switch. Either way, it seems too good to be true.
A: Many lenders offer "no cost" products to prompt homeowners to consider whether a change in their current financing makes sense. In some cases, the costs you mention -- appraisal, etc. -- are covered by charging a somewhat higher rate. In other cases, the lender requires, as you suggest, that the loan be kept in force for a certain period of time. Otherwise, a prepayment penalty is charged so that the lender can recoup all or some of the cost involved in originating the loan.
However, the big guys like Countrywide can and often do offer true "no cost" loans in the hopes that they will be able to cross-sell other, more lucrative products to new customers. In this case, no-cost loans could be considered a loss-leader to get folks in the door.
At least two other large institutions, Bank of America and Washington Mutual, also offer no-cost loans -- no origination fee, annual fee, mortgage insurance or closing fees.
Under WaMu's new Mortgage Plus product, the Seattle-based lender says it will waive more than 30 fees for the borrower, though the specific number depends on the state. It will pay closing fees, which are those associated with the loan. But mortgage taxes, transfer fees and other state and county levies are still the borrower's responsibility.
How can they do it? Either these giant lenders have volume deals with settlement providers or they have people on their staff who do the chores other lenders pay outside vendors to do.
That said, it still behooves a would-be borrower to consider several loan choices before deciding. Depending on how long a borrower plans to stay with the mortgage, it may be less expensive to pay the fees out of pocket or to roll them into the loan principal. As always, take a paper to pencil and figure out the differences.
In fact, Countrywide recently launched a broad national initiative designed to educate mortgage consumers about the fact that they have many options available to them regarding how certain costs are paid when refinancing or obtaining a home loan, no matter which mortgage lender they choose. One of their key messages is that while a no-cost loan may be right for some, it isn't necessarily the best choice for every borrower.
"People clearly understand that there will be costs when they finance a home," said Dan Hanson, managing director of Countrywide. "Home buyers look to us for information, so we've decided to recommit ourselves to educating people about the cost options that work best for their unique situations.
By presenting our customers with a menu of options, they can make an informed choice that's right for them now and into the future. The best choice in the long run isn't necessarily the one with the least out-of-pocket costs, but rather the one that brings the best total value over the life of the loan." Read about borrowers angry at Countrywide.
Nationally syndicated columnist Lew Sichelman has been covering the housing market for 35 years. Because of the volume of mail he receives, he cannot answer individual questions, nor can all questions be answered in this space. E-mail lsichelman@aol.com
Answer: A score of 769 is extremely good. Congratulations, you obviously know how to handle credit. But to try to push your score to 800 and beyond would be sweating the small stuff. A core of 800-plus won't get you a lower rate or better terms than you can obtain with a 769, so why bother? In the words of a famous Chicagoan, forgetaboutit.
Q: My credit score hovers just below 800, and I have been trying to figure out what to do to get it over 800 simply as point of personal pride. It won't make any difference on my rates, just in how I rate myself.
A: The scoring programs are so intricate -- and somewhat different for each of the major credit depositories -- that it is impossible for me and anyone else to give this kind of advice without first seeing your score and the explanation codes that go along with it. The key lies in the explanation of why you may not have scored as well as you could. Once you see what the program has to say, go from there.
But honestly, you are really wasting your time. A credit score is based on a snapshot of your credit record on a particular day and hour. Since the information in your file changes on at least a monthly basis -- and possibly more frequently -- a small move this week could be offset by something next week.
Therefore, I say take pride in your almost 800 and leave it at that. You are one of the few, the brave, the mighty!
Q: I have been seeing a Countrywide ad on TV in which it is advertised that the borrower pays no closing costs, appraisal and other costs associated with the refinance of a home. Normally this would amount to about $4,500. Of course, this is offered through its retail branches only. Are they servicing the loan until their "costs" are recaptured? Or are they limiting this offer to someone with a 750 credit score (exaggeration intended) and then offering a client with 749 or below a different loan at a much higher rate with "some" closing costs? Smoke and mirrors or bait and switch. Either way, it seems too good to be true.
A: Many lenders offer "no cost" products to prompt homeowners to consider whether a change in their current financing makes sense. In some cases, the costs you mention -- appraisal, etc. -- are covered by charging a somewhat higher rate. In other cases, the lender requires, as you suggest, that the loan be kept in force for a certain period of time. Otherwise, a prepayment penalty is charged so that the lender can recoup all or some of the cost involved in originating the loan.
However, the big guys like Countrywide can and often do offer true "no cost" loans in the hopes that they will be able to cross-sell other, more lucrative products to new customers. In this case, no-cost loans could be considered a loss-leader to get folks in the door.
At least two other large institutions, Bank of America and Washington Mutual, also offer no-cost loans -- no origination fee, annual fee, mortgage insurance or closing fees.
Under WaMu's new Mortgage Plus product, the Seattle-based lender says it will waive more than 30 fees for the borrower, though the specific number depends on the state. It will pay closing fees, which are those associated with the loan. But mortgage taxes, transfer fees and other state and county levies are still the borrower's responsibility.
How can they do it? Either these giant lenders have volume deals with settlement providers or they have people on their staff who do the chores other lenders pay outside vendors to do.
That said, it still behooves a would-be borrower to consider several loan choices before deciding. Depending on how long a borrower plans to stay with the mortgage, it may be less expensive to pay the fees out of pocket or to roll them into the loan principal. As always, take a paper to pencil and figure out the differences.
In fact, Countrywide recently launched a broad national initiative designed to educate mortgage consumers about the fact that they have many options available to them regarding how certain costs are paid when refinancing or obtaining a home loan, no matter which mortgage lender they choose. One of their key messages is that while a no-cost loan may be right for some, it isn't necessarily the best choice for every borrower.
"People clearly understand that there will be costs when they finance a home," said Dan Hanson, managing director of Countrywide. "Home buyers look to us for information, so we've decided to recommit ourselves to educating people about the cost options that work best for their unique situations.
By presenting our customers with a menu of options, they can make an informed choice that's right for them now and into the future. The best choice in the long run isn't necessarily the one with the least out-of-pocket costs, but rather the one that brings the best total value over the life of the loan." Read about borrowers angry at Countrywide.
Nationally syndicated columnist Lew Sichelman has been covering the housing market for 35 years. Because of the volume of mail he receives, he cannot answer individual questions, nor can all questions be answered in this space. E-mail lsichelman@aol.com
My living trust became nearly worthless
Homeowner makes big mistake after refinancing
By Robert J. Bruss Inman News
Nobody, including me, likes to think about death. But it is inevitable, as I was reminded during a recent hospitalization for major surgery. Thankfully, because of the excellent surgeons, nurses and my friends, I came through the experience successfully.
After I recovered, I learned from the doctors I had been very close to death. When I got home and was feeling better, one of the first things I did was review my estate plan.
Purchase Bob Bruss reports online.
In the process, I discovered my old living trust had become nearly worthless. The primary reason was, like most real estate owners, in the last few years I refinanced my properties to take advantage of lower mortgage interest rates. As part of the process, the lenders required me to take my property titles out of my living trust, record the new mortgages, and then put the titles back into my living trust.
But I carelessly didn't follow up and the title companies failed to re-deed my properties back into my living trust. The result was my living trust had become virtually empty because it was "unfunded." If I could make that mistake, think of how many other homeowners and realty investors also have worthless, empty living trusts.
Especially because I wanted to revise my estate plan and change my beneficiaries, I decided to hire a trusts and estates attorney. The total cost, including recording fees, was about $1,300. That is far less than the 3 to 10 percent of gross assets it costs to probate a typical estate.
Frankly, although I am an attorney and could prepare my own living trust to avoid probate costs and delays, I'm glad I hired another attorney.
Among the extra improvements he suggested were (1) a durable power of attorney for lifetime asset management (in case I become unable to manage my assets); (2) a "living will" (also called an advanced health care directive) so the designated person can make health care decisions, such as taking me off life support if there is no reasonable hope for recovery; and (3) a "pour-over will" for any assets omitted from my new living trust. The attorney also made certain all my property titles were correctly transferred to fund my living trust.
EVERYBODY NEEDS A WILL. Shockingly, less than 20 percent of U.S. residents have a written will. For those who have a will, after they die their assets will be distributed according to their wills by the local Probate Court. Probating an estate, even a modest one, usually takes six to 18 months or longer before the heirs can receive their inheritances.
For individuals who die without a written will, the state law of intestate succession determines who will receive their assets. Especially in second marriages, the result is often not what the decedent would have wanted. Again, the local probate court supervises intestate succession distribution, subject to costs and delays.
However, if no written will and no relatives can be found, a person's assets "escheat" to the state. That means the probate court will sell the assets and deposit the proceeds into the state treasury. That is not the result most people want.
HOW TO AVOID PROBATE. Even if you have a written will, it usually won't avoid probate costs and delays. Well-known methods of probate court avoidance include holding real estate titles in joint tenancy with right of survivorship (or as tenants by the entireties between husband and wife) and holding bank accounts or stock brokerage accounts with "payable upon death" designations.
But all these methods have major drawbacks, especially when two or more persons own an asset but one becomes incapacitated such as by Alzheimer's disease, a coma or a severe stroke.
A better alternative to avoid probate costs and delays for most individuals is a revocable living trust. This is simply a method of holding title to major assets, such as a home, investment property, bank accounts, common stocks, mutual funds, and other major assets.
When a living-trust grantor creates a living trust, he is its initial trustor, trustee and beneficiary. That means he can buy, sell, refinance and manage the assets as before.
However, if he becomes incapacitated, then the named successor trustee, such as a spouse or adult child, takes over management and can even sell the assets if necessary. There is no necessity to have a conservator appointed by the probate court. Husband and wife can either have individual living trusts or a joint living trust.
After a living-trust grantor dies, the successor trustee then distributes the living-trust assets to the individuals and/or charities named in the document. The local probate court does not become involved, so distribution usually is completed within six months.
ADVANTAGES OF LIVING TRUSTS. Among the many advantages of a revocable living trust are (1) easy amendments or revocation as desired by the trustor; (2) ownership benefits remain unchanged, including income-tax deductions and the principal-residence-sale tax exemption; (3) avoidance of multistate probates if real estate is owned in more than one state; (4) privacy because living trusts do not become public, as do written wills filed for probate; (5) the successor trustee manages the living-trust assets if the trustor becomes incapacitated; and (6) the successor trustee distributes the assets after the grantor's death.
DISADVANTAGES OF LIVING TRUSTS. Among the few disadvantages of revocable living trusts are (1) no statutory period to limit creditor claims (as occurs in probate court); (2) the cost and inconvenience of "funding" the living trust (usually far less than the cost of probating an estate); (3) when refinancing mortgages, lenders usually require taking real estate out of the living trust for a moment while the mortgage papers are signed and recorded; and (4) a living-trust trustor needs a "pour-over will" or a "back-up will" for any assets that were not included in the living trust.
SUMMARY: Revocable living trusts offer many advantages and few disadvantages to avoid probate costs and delays for heirs as well as conservatorship during the grantor's lifetime.
By avoiding involvement of the local probate court, living-trust beneficiaries usually receive their assets within six months after the decedent's death.
More details are in my new special report, "Pros and Cons of Living Trusts to Avoid Conservatorship and Probate Costs and Delays for Your Heirs," available for $5 from Robert Bruss, 251 Park Road, Burlingame, Calif., 94010, or by credit card at 1-800-736-1736 or instant Internet delivery at http://www.bobbruss.com/.
(For more information on Bob Bruss publications, visit his Real Estate Center
Thursday, August 2, 2007
Can You Afford A Home?
The time has come to buy a house. Questions buzz around in your head like a swarm of angry bees: “How much can I borrow? How much do I have to put down? How much will my payments be?” Well, let me suggest starting with the “How much can I borrow?” question.
I know you should never answer a question with a question, but in this case we need to ask a few more questions in order to figure out the answer to our first question, and for those of you who would like start crunching numbers right away, try out these helpful mortgage calculators.
There are many factors you need to take into consideration when purchasing a home. First and foremost, ask yourself what size monthly payment you can afford. When determining how large a mortgage you can afford, be sure to factor in all your current expenses such as car payments, credit card bills, student loans, utilities, and the like.
You may also want to factor in how much you spend on things like entertainment, eating out, and traveling. You don't want to add a mortgage payment and say goodbye to your social life. Instead, you want to make sure that you're not overextending yourself financially and thus ensuring the survival of your social life.
At the present time, most lenders will allow for a whopping debt-to-income ratio of 45% - 50%. Your debt-to-income ratio is the sum of your mortgage payment and any other credit card or loan payments, divided by your monthly gross income. Lenders use this ratio to help determine your credit worthiness.
So, all of your revolving debts along with your mortgage payment divided by your monthly gross income should not exceed the 36% - 45% debt-to-income ratio. So, here’s a quick little formula to help you figure out how much you can afford to put toward your monthly house payment:
--Multiply your gross monthly income by 0.45
--Subtract your non-mortgage debt payments from the result
--What's left is your allowable mortgage payment
So, if we have a couple with a combined monthly gross income of $5000 and they pay $700 a month toward two auto loans and one credit card, they would qualify for a monthly payment of $1550.
Also, be aware that not all of your monthly housing payment goes toward your principal and interest. A portion must go toward homeowner's insurance and property taxes. I mention this because on most mortgage calculators that’ll you use, you’ll need to enter these figures to get an accurate idea of what your real monthly mortgage payment will look like.
Property taxes are typically a percentage of your home's assessed value. To calculate property taxes, local jurisdictions generally multiply the tax rate by a home's assessed value. For example, if you pay 0.5% in property taxes of the assessed value, a home assessed at $250,000 would have a yearly property tax bill of $1,250.
In order to find out the tax rate, you will need to contact your county tax assessor, or a local mortgage broker or bank may be able to assist you. As for the homeowner’s insurance, your best bet is talking to a local broker or bank to get a general idea of what it is for your area.
Mortgage calculators will ask you for a percentage rate sometimes and others will ask for a yearly figure. It can be confusing for a new buyer, so don't be afraid to seek a little assistance.
Figuring out how much you can afford to put toward your monthly house payment is a start. Now, you want to know how much house you can afford. There are mortgage calculators galore that will help you do this, but, as I mentioned above, they will require you to enter real estate taxes, homeowner’s insurance, and interest rates. Some calculators will provide you with figures, but they aren’t necessarily correct, so I would suggest a little leg work.
Once you know how much you can comfortably spend a month toward a home, and you’ve gathered your tax and insurance rates, you only need an idea of what kind of interest rate you’ll get (Oh, did I forget to mention that you can call your local bank or mortgage broker to get pre-qualified as well, and they usually don’t charge anything?).
If you’re curious, try out some mortgage calculators. Once you have a good idea of what you think you can afford, call a local bank or broker and get pre-qualified to see if you’re in the ballpark, and soon you’ll be on your way to owning a home.
About the Author: Brian Daniel is a loan officer/marketing coordinator for Bend Mortgage Group Ltd. a mortgage company in Bend, Oregon. For more information or help with a Bend, Oregon home loan visit www.bendmortgagegroup.com.
Basics of Borrowing Money
Are you thinking about starting a business but have no money to do it with. Well, you're not alone. This article will tell you the basics of borrowing money.
A loan is money that is borrowed, and has to be paid back along with interest. If the money is borrowed from an institution such as a bank, this is called a commercial loan. Money that is borrowed from a friend or a relative is called a personal loan.
The borrower, or debtor, is the business or individual that takes out the loan. The lender, or creditor, is the source from which the money was borrowed. The term, or period, is the time that is specified during which the borrower has to use the money borrowed before he has to repay the loan. The maturity of a loan is when a loan term reaches its end. The Principal is the amount that is borrowed from the lender.
When you or your business borrows money, the lender wants to know when they will get their money back. Keep this in mind when you are looking for a lending source.
If the business is not able to repay the loan, the lending source has a right to legally come after assets to recoup it's money. The extent to which you are personally liable depends on the business structure your business is operating under.
If you are approved for a loan, that you will have to make scheduled payments (typically on monthly basis) plus interest. A loan can sometimes be set up as a balloon loan. A balloon loan will typically require smaller initial payments and one lump sum of what was borrowed as the final payment at the end of the term.
Borrowing from Institutions
Business loans generally fall into two main categories: short term and long term loans. A short term loan is a loan that is to be payed back within one year. Examples of short term loans include:
Working capital loans
Accounts receivable loans
Lines of credit
Long term loans are loans that are to be payed back typically from one to seven years. Long term loans are typically used for:
an expansion of a business
the purchase of equipment
real estate
Most business loans that are used for starting a business are long term loans.
When you approach an institution for a business loan, it will be looking at you as the business owner as closely as it will be looking at the business itself. One of the ways lending institutions make money is by lending money and they want to be as sure as possible that they get back their money with the interest owed.
The time between applying for a loan and learning that you have been approved (or disapproved) can vary. If you are disapproved, you may be told almost instantly. If you are approved, it may take a few days though it usually takes longer. It may even take several months to learn whether you or your business has being approved for the loan.
Borrowing from Family and Friends
If you don't want to, or can't get a commercial loan, you can consider getting a private loan from family or friends. This is usually real informal. However, you need to be careful because this can lead to ruined relationships.
If you are getting a private loan, it is in the best interest of the lender to have an agreement put in writing. The written agreement should state the principal, the interest charged and the terms of repayment. This puts the lender in better position either write off the loan on his or her tax return or to legally come after you.
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About the Author: article source: A Guide to Starting a Business at http://www.aguidetostartingabusiness.com
Print Article | Email Article | Download PDF | 332 views | Jun 21 2005 by Jose Valdez
Saturday, July 14, 2007
About ISREP
Welcome to ISREP, pronounced "IS"-"REP", the acronym for the International Society of Real Estate Professionals.
ISREP is a solely owned entity that is entirely an online assembly of professional associates and assistants within the real estate industry.
Affiliation is afforded industry professionals and their assistants through a fee based "membership format" --- an annual or an optional "low fee" lifetime (four times the annual fee price) membership.
Unlike another well known organization, in the U.S. and Canada, ISREP "does not" have restrictions for membership. We feel, if you are an industry professional in good standing with the company you work for, and you are considered an acceptable lawful business by the government jurisdiction in which you are located, than you have the "individual right to join ISREP".
There are two categories of ISREP membership ---
Regular Membership is afforded to Industry Professionals, such as Real Estate Agents, Appraisers, Home Inspectors, Lenders (Loan Officers, Mortgage Brokers & Bankers), Title Co Officers, Escrow Officers (LPO's, etc).
Associate Membership is afforded to industry assistants of the regular membership professions noted above.
ISREP has low membership fees!
ISREP provides both professional and associate members an "online business profile", at "no extra charge". Other organizations charge extra for this service, as much as $350-$400 a year! Once again, ISREP "displays your profile" for consumers to see, at "no extra charge".
Internationally, ISREP links consumers with members and members benefit from direct communication links to other industry professionals and their assistants as well.
ISREP maintains a "resource center" at "no extra charge", providing members access to a whole cross section of industry vendors, an online real estate agent store, publications of all kinds, industry forms, other tools and enhancements to increase business productivity and effectiveness.
In summation, CLICK HERE for the benefits of joining ISREP
ISREP is a solely owned entity that is entirely an online assembly of professional associates and assistants within the real estate industry.
Affiliation is afforded industry professionals and their assistants through a fee based "membership format" --- an annual or an optional "low fee" lifetime (four times the annual fee price) membership.
Unlike another well known organization, in the U.S. and Canada, ISREP "does not" have restrictions for membership. We feel, if you are an industry professional in good standing with the company you work for, and you are considered an acceptable lawful business by the government jurisdiction in which you are located, than you have the "individual right to join ISREP".
There are two categories of ISREP membership ---
Regular Membership is afforded to Industry Professionals, such as Real Estate Agents, Appraisers, Home Inspectors, Lenders (Loan Officers, Mortgage Brokers & Bankers), Title Co Officers, Escrow Officers (LPO's, etc).
Associate Membership is afforded to industry assistants of the regular membership professions noted above.
ISREP has low membership fees!
ISREP provides both professional and associate members an "online business profile", at "no extra charge". Other organizations charge extra for this service, as much as $350-$400 a year! Once again, ISREP "displays your profile" for consumers to see, at "no extra charge".
Internationally, ISREP links consumers with members and members benefit from direct communication links to other industry professionals and their assistants as well.
ISREP maintains a "resource center" at "no extra charge", providing members access to a whole cross section of industry vendors, an online real estate agent store, publications of all kinds, industry forms, other tools and enhancements to increase business productivity and effectiveness.
In summation, CLICK HERE for the benefits of joining ISREP
Monday, June 11, 2007
Buying Real Estate When It's Not For Sale
Buying real estate can start with a look in the newspaper, a visit to a broker, or a search online. These are all good ways to find your next investment property. You're looking at the same properties as every other investor, of course, so it's not always easy to beat the competition to a great buy.
A better way to find good real estate investments is to look for properties that aren't yet for sale, and make an offer. I bought my first home this way. I put an ad in the paper stating what I was looking for, and soon had a call from an old couple that had been thinking about selling. I bought their place at a good price, and they saved a broker's commission.
Buying investment real estate that isn't for sale starts with a three step search process. First decide what you are looking for. Single family rentals or apartment buildings? Then start looking for properties that fit your criteria. Then contact the owners.
Buying Real Estate From Non-Sellers
Don't limit yourself to "fixer-uppers" or other "problem" properties that seem more likely to have owners willing to sell. Many owners of investment real estate have thought of selling, so you can start with almost any building you like. You never know beforehand if or why a landlord is ready to call it quits. You find out by asking.
Tact is necessary here. Call the owner and tell him you're an investor, not a broker. Let him know that you like what you see. Tell him you can have an offer ready in a week if he's interested. NEVER EVER MENTION THE PRICE VERBALLY AND IF YOU WANT TO RAISE YOUR CHANCES OF GETTING THE PROPERTY, "DO NOT" GO ANY FURTHER IN THE CONVERSATION AT THIS POINT....The seller will do all he can to find out what you had in mind, and tell him first, you wanted to find out if the seller was even interested in selling....and every time there is a question about price or about what your offer will look like, say, "ya know what, since you sound interested, I'll take a day or two, have an offer in writing for you, and let's go from there...."
At this point, this is where you call a BUYERS AGENT (If you are in WA State, call Beryl Gosney at 425-344-2222, a leading buyers agent on Internet and serves Western Washington).....
DO NOT, UNDER ANY CIRCUMSTANCES start negotitating with the seller yourself...I don't care how many homes you've owned, or if you are a seasoned sales person or not, selling homes is unique. Home selling experience specifically, truely makes a difference in the outcome of your deal ---- especially when the buyers agent representing you, is paid by the seller! You see, it most all cases, the buyers agent commision has already been pre-determined in the sellers listing contract, that a commission would be going to the seller agents broker, from the sellers proceeds.
If the seller is not interested, thank him politely when you made the initial call and hang up, an d share the contact info with your buyers agent and ask them to send the homeowner a card or a letter on your behalf. Many investors have bought from owners that changed their minds.
Naturally if you are buying a rental unit, we'll need to see the books. Specifically, you'll need to see the rent roll, listing the units and what they rent for, plus current occupancy, and operating expenses for the last year.
The buyers agent needs to have a confidentiality agreement ready for you to sign and attach with your offer. Your agent should let the owner know that you'll sign it and the agent will deliver it to him before you see the books. He may not want to let the tenants know he's thinking of selling, so inspecting the units may have to wait until you make an offer. Just make an acceptable inspection a contingency in the offer.
Why buy investment properties this way? No competition means you may get a better price. Also, instead of waiting for that perfect property to be listed for sale, you just find it now. Why wait until it's for sale before buying real estate?
A better way to find good real estate investments is to look for properties that aren't yet for sale, and make an offer. I bought my first home this way. I put an ad in the paper stating what I was looking for, and soon had a call from an old couple that had been thinking about selling. I bought their place at a good price, and they saved a broker's commission.
Buying investment real estate that isn't for sale starts with a three step search process. First decide what you are looking for. Single family rentals or apartment buildings? Then start looking for properties that fit your criteria. Then contact the owners.
Buying Real Estate From Non-Sellers
Don't limit yourself to "fixer-uppers" or other "problem" properties that seem more likely to have owners willing to sell. Many owners of investment real estate have thought of selling, so you can start with almost any building you like. You never know beforehand if or why a landlord is ready to call it quits. You find out by asking.
Tact is necessary here. Call the owner and tell him you're an investor, not a broker. Let him know that you like what you see. Tell him you can have an offer ready in a week if he's interested. NEVER EVER MENTION THE PRICE VERBALLY AND IF YOU WANT TO RAISE YOUR CHANCES OF GETTING THE PROPERTY, "DO NOT" GO ANY FURTHER IN THE CONVERSATION AT THIS POINT....The seller will do all he can to find out what you had in mind, and tell him first, you wanted to find out if the seller was even interested in selling....and every time there is a question about price or about what your offer will look like, say, "ya know what, since you sound interested, I'll take a day or two, have an offer in writing for you, and let's go from there...."
At this point, this is where you call a BUYERS AGENT (If you are in WA State, call Beryl Gosney at 425-344-2222, a leading buyers agent on Internet and serves Western Washington).....
DO NOT, UNDER ANY CIRCUMSTANCES start negotitating with the seller yourself...I don't care how many homes you've owned, or if you are a seasoned sales person or not, selling homes is unique. Home selling experience specifically, truely makes a difference in the outcome of your deal ---- especially when the buyers agent representing you, is paid by the seller! You see, it most all cases, the buyers agent commision has already been pre-determined in the sellers listing contract, that a commission would be going to the seller agents broker, from the sellers proceeds.
If the seller is not interested, thank him politely when you made the initial call and hang up, an d share the contact info with your buyers agent and ask them to send the homeowner a card or a letter on your behalf. Many investors have bought from owners that changed their minds.
Naturally if you are buying a rental unit, we'll need to see the books. Specifically, you'll need to see the rent roll, listing the units and what they rent for, plus current occupancy, and operating expenses for the last year.
The buyers agent needs to have a confidentiality agreement ready for you to sign and attach with your offer. Your agent should let the owner know that you'll sign it and the agent will deliver it to him before you see the books. He may not want to let the tenants know he's thinking of selling, so inspecting the units may have to wait until you make an offer. Just make an acceptable inspection a contingency in the offer.
Why buy investment properties this way? No competition means you may get a better price. Also, instead of waiting for that perfect property to be listed for sale, you just find it now. Why wait until it's for sale before buying real estate?
Tuesday, June 5, 2007
How to Create Your Dream Home
(ARA) - Among the clipped lawns and traditional style homes of Green Bay, a cozy log home nestled in the woods is a rarity indeed. Equally rare are the steps the owners have taken to protect their original retreat.
On a hot summer morning, David and Kathy Janczak opened their Green Bay home to visitors who share their passion for log home living. “This is the first time we’ve hosted an open house since renovating our log home,” said Kathy, in the lodge-like great room where the family of five shared meals, celebrated holidays and created hand-made Christmas ornaments.
Nearly 30 years ago, the young couple dreamt of a log home of their own. David, an avid woodworker who had been studying log home construction for some time, promised his new bride Kathy that he would build her a dream home as a wedding gift.
On a 20-acre parcel of land, David diligently set out to fulfill his promise, with Kathy working beside him every step of the way. Completed in 1976, the full log home was an intimate 1,547 square feet. The great room, which was the heart of the home, remains intact today.
Local excitement over their home and many requests prompted David to craft similar log homes for other enthusiasts. This, in turn, created Wisconsin Log Homes Inc., which David continues to oversee today. Both the home and company has grown significantly over the years, a testament to America’s love affair with rustic homes and the simple, comfortable feeling they generate.
While the 60-plus people toured and explored their recently remodeled home, David and Kathy eagerly shared their experiences with both full log and half log construction. As the visitors marveled over the fine craftsmanship and attention to detail, David educated them on the basics of log homes and energy efficiency, including explaining why he developed the Thermal-Log insulated half-log building system 30 years ago.
David says the spacious, yet unpretentious 5,600-square-foot hybrid home “Is a result of 30 years of ideas and experience in log home design and construction.” Designed for entertaining as well as day-to-day living, the home showcases many progressive design elements, all while exuding traditional log home comfort and warmth.
The Janczak home was designed to be one with nature, both indoors and out. Strategically placed doors, windows and bump-outs maximize the surrounding view which includes a pond, wooded area and front water garden. A screen porch and wrap-around architecturally lit stamped concrete patio is the perfect place to relax during sunset at the end of a long day.
Indoors, the couple’s love for natural materials is evident, incorporated into almost every design element. From the chocolate glazed ceramic tile on the floor to the handcrafted antler chandeliers, the space is saturated with various textures. David’s trademark wormy wavy edge trim and custom gnarly railings give the log home a personal artistic touch not readily seen in the industry today.
The custom kitchen designed by Kathy and the company’s in-house interior designer shows how a modern working kitchen can flow effortlessly into an open floor plan typical of log home design. Character cherry cabinets topped with custom crown molding, state-of-the-art appliances cleverly tucked behind cabinet panels and a hand-scraped engineered hickory floor warmed with radiant floor heat are some of the few places where technology meets style in the Janczak home. The raised cabinet at the end of the island has a painted furniture look to it, complete with authentic antler pulls.
As the visitors split up and meandered from room to room, they began to share their ideas and own design inspirations with one another. Some were focused on the architectural elements while others eagerly discussed envisioned floor plans. “The trip to Green Bay was well worth it,” one attendee noted. “This home gives us lots of ideas. The finished product shows much more than any catalog pictures.”
Several visitors were fascinated with the Janczak’s master bath which does not utilize a door. A strategically placed corner whirlpool tub with a mini-chandelier hanging above provides a spa-like view from the master bedroom. A partial wall separates the commode without closing in the space and a glass and tile walk-in shower is both functional and aesthetically pleasing. “This space was actually inspired by the Janczak’s favorite Mexican retreat,” Wisconsin Log Homes resident interior designer Stephanie Gauthier explained. “Beautiful design usually originates from things that we love. These are the elements that make your house a home and uniquely yours.”
The groups were well rounded; some empty nesters, families, newlyweds and even a couple excited about planning a log-inspired bed and breakfast. “I love color and my husband loves structure,” one wife commented in a boldly painted bedroom combined with a knotty pine ceiling and log accented walls. “I am so pleased to see that we can have both.”
The Janczak’s open house was a huge success and an inspiration to many. “We are planning another in the future for those who were unable to attend due to a limited number of reservations available,” Kathy noted. “In the past we held design/build seminars at our headquarters’, but seeing a completed home helps people better visualize what they can actually have.”
For more information about designing and building log homes or to order Wisconsin Log Homes’ comprehensive 156-page planning guide and DVD, log on to www.wisconsinloghomes.com, or call (800) 678-9107.
Courtesy of ARA Content
On a hot summer morning, David and Kathy Janczak opened their Green Bay home to visitors who share their passion for log home living. “This is the first time we’ve hosted an open house since renovating our log home,” said Kathy, in the lodge-like great room where the family of five shared meals, celebrated holidays and created hand-made Christmas ornaments.
Nearly 30 years ago, the young couple dreamt of a log home of their own. David, an avid woodworker who had been studying log home construction for some time, promised his new bride Kathy that he would build her a dream home as a wedding gift.
On a 20-acre parcel of land, David diligently set out to fulfill his promise, with Kathy working beside him every step of the way. Completed in 1976, the full log home was an intimate 1,547 square feet. The great room, which was the heart of the home, remains intact today.
Local excitement over their home and many requests prompted David to craft similar log homes for other enthusiasts. This, in turn, created Wisconsin Log Homes Inc., which David continues to oversee today. Both the home and company has grown significantly over the years, a testament to America’s love affair with rustic homes and the simple, comfortable feeling they generate.
While the 60-plus people toured and explored their recently remodeled home, David and Kathy eagerly shared their experiences with both full log and half log construction. As the visitors marveled over the fine craftsmanship and attention to detail, David educated them on the basics of log homes and energy efficiency, including explaining why he developed the Thermal-Log insulated half-log building system 30 years ago.
David says the spacious, yet unpretentious 5,600-square-foot hybrid home “Is a result of 30 years of ideas and experience in log home design and construction.” Designed for entertaining as well as day-to-day living, the home showcases many progressive design elements, all while exuding traditional log home comfort and warmth.
The Janczak home was designed to be one with nature, both indoors and out. Strategically placed doors, windows and bump-outs maximize the surrounding view which includes a pond, wooded area and front water garden. A screen porch and wrap-around architecturally lit stamped concrete patio is the perfect place to relax during sunset at the end of a long day.
Indoors, the couple’s love for natural materials is evident, incorporated into almost every design element. From the chocolate glazed ceramic tile on the floor to the handcrafted antler chandeliers, the space is saturated with various textures. David’s trademark wormy wavy edge trim and custom gnarly railings give the log home a personal artistic touch not readily seen in the industry today.
The custom kitchen designed by Kathy and the company’s in-house interior designer shows how a modern working kitchen can flow effortlessly into an open floor plan typical of log home design. Character cherry cabinets topped with custom crown molding, state-of-the-art appliances cleverly tucked behind cabinet panels and a hand-scraped engineered hickory floor warmed with radiant floor heat are some of the few places where technology meets style in the Janczak home. The raised cabinet at the end of the island has a painted furniture look to it, complete with authentic antler pulls.
As the visitors split up and meandered from room to room, they began to share their ideas and own design inspirations with one another. Some were focused on the architectural elements while others eagerly discussed envisioned floor plans. “The trip to Green Bay was well worth it,” one attendee noted. “This home gives us lots of ideas. The finished product shows much more than any catalog pictures.”
Several visitors were fascinated with the Janczak’s master bath which does not utilize a door. A strategically placed corner whirlpool tub with a mini-chandelier hanging above provides a spa-like view from the master bedroom. A partial wall separates the commode without closing in the space and a glass and tile walk-in shower is both functional and aesthetically pleasing. “This space was actually inspired by the Janczak’s favorite Mexican retreat,” Wisconsin Log Homes resident interior designer Stephanie Gauthier explained. “Beautiful design usually originates from things that we love. These are the elements that make your house a home and uniquely yours.”
The groups were well rounded; some empty nesters, families, newlyweds and even a couple excited about planning a log-inspired bed and breakfast. “I love color and my husband loves structure,” one wife commented in a boldly painted bedroom combined with a knotty pine ceiling and log accented walls. “I am so pleased to see that we can have both.”
The Janczak’s open house was a huge success and an inspiration to many. “We are planning another in the future for those who were unable to attend due to a limited number of reservations available,” Kathy noted. “In the past we held design/build seminars at our headquarters’, but seeing a completed home helps people better visualize what they can actually have.”
For more information about designing and building log homes or to order Wisconsin Log Homes’ comprehensive 156-page planning guide and DVD, log on to www.wisconsinloghomes.com, or call (800) 678-9107.
Courtesy of ARA Content
Facelift for the Middle-Aged Door
How to Recognize and Reverse Signs of Aging at the Front Entry
(ARA) – These days, baby boomers aren’t the only ones worried about showing their age. When it comes to the middle-aged home, the front door is often the first to go.
That’s because exterior doors -- one of the larger openings on the home -- often take the brunt of UV exposure, wind and rain over a period of decades. A Harvard University study shows the average age of a home in the United States is 32 years old and rising, so doors definitely develop their share of “age spots.”
“It’s important to understand the causes and effects of wear and tear on exterior doors because they provide security and energy efficiency benefits, not to mention curb appeal, for the home,” says Shane Meisel, product marketing manager for JELD-WEN doors. “Proper maintenance -- just a little attention over time -- can help extend the life of exterior doors for many years.”
To maintain their youthful appearance, it’s important to regularly inspect exterior doors and repair problem spots, such as fading and the ill effects of water penetration. So with both performance and curb appeal in mind, here is a guide to recognizing and reversing signs of aging on exterior doors.
Anti-Aging Regimen for Exterior Doors
Proper finishing. The first defense against premature aging of doors is proper finishing. It’s important to follow the manufacturer’s directions and be sure to finish all six sides of the door. Even though you may not see the top and bottom, they can be conduits for doors to absorb moisture from the environment, causing swelling and cracking over time.
Correct exposure ratio. The placement of an exterior door plays a major role in its maintenance and longevity. It’s important to determine the amount of overhang that protects the door from sun and rain and understand the UV exposure generated by the direction the door faces. In mild climates, the overhang should equal at least one-half of the door’s height. More severe climates require larger overhangs. The industry term for the correct exposure ratio is “coefficient.”
High-performance materials. New advances in manufacturing technology have taken the worry out of wood doors. JELD-WEN now offers AuraLast wood for U.S.-produced pine wood doors and frames. Thanks to a revolutionary penetrating treatment process, AuraLast wood is guaranteed to resist termites and decay for 20 years, and AuraLast wood frames carry a lifetime warranty.
Periodic inspection and maintenance. Just like any other exterior surface, doors need cleaning and care each year. Homeowners should expect to refinish wood doors every two to five years. For solid wood doors, lightly sand, then wipe away dust with a clean cloth, slightly dampened with mineral spirits. For doors made of other materials, follow the manufacturer’s refinishing recommendations. Apply at least two coats of a fade-resistant exterior polyurethane with an ultraviolet inhibitor, following the manufacturer’s recommendations. Sand lightly between coats and be sure to finish all six sides of the door in the same manner.
Top Tips for Sprucing up the Front Entry
Once the entry door is properly finished and protected, homeowners may want to consider these inexpensive cosmetic upgrades.
1. Consider a new paint color. A touch of color for the front door gives the whole front of the home a lift. JELD-WEN’s new front door selector tool, offered at www.jeld-wen.com, allows homeowners to experiment with different looks online.
2. Install new hardware. This is one of the quickest and easiest ways to spruce up the front entry on your own. Be sure to consider how the color and finish of the hardware coordinates or contrasts with the color and texture of the front door, and select a low-maintenance finish. Examples of new hardware to consider are brass kick plates, door handles, door knockers, locks and even mail slots.
3. Incorporate house numbers and lighting at the entryway. House numbers are a huge trend in “exterior design.” With more stylish options available than ever before, this little weekend project makes a big impact at the front entry. Likewise, a matching exterior light adds a warm and welcoming ambience.
For more door care and maintenance tips from JELD-WEN or to browse new styles for replacement doors, visit www.jeld-wen.com.
Courtesy of ARA Content
(ARA) – These days, baby boomers aren’t the only ones worried about showing their age. When it comes to the middle-aged home, the front door is often the first to go.
That’s because exterior doors -- one of the larger openings on the home -- often take the brunt of UV exposure, wind and rain over a period of decades. A Harvard University study shows the average age of a home in the United States is 32 years old and rising, so doors definitely develop their share of “age spots.”
“It’s important to understand the causes and effects of wear and tear on exterior doors because they provide security and energy efficiency benefits, not to mention curb appeal, for the home,” says Shane Meisel, product marketing manager for JELD-WEN doors. “Proper maintenance -- just a little attention over time -- can help extend the life of exterior doors for many years.”
To maintain their youthful appearance, it’s important to regularly inspect exterior doors and repair problem spots, such as fading and the ill effects of water penetration. So with both performance and curb appeal in mind, here is a guide to recognizing and reversing signs of aging on exterior doors.
Anti-Aging Regimen for Exterior Doors
Proper finishing. The first defense against premature aging of doors is proper finishing. It’s important to follow the manufacturer’s directions and be sure to finish all six sides of the door. Even though you may not see the top and bottom, they can be conduits for doors to absorb moisture from the environment, causing swelling and cracking over time.
Correct exposure ratio. The placement of an exterior door plays a major role in its maintenance and longevity. It’s important to determine the amount of overhang that protects the door from sun and rain and understand the UV exposure generated by the direction the door faces. In mild climates, the overhang should equal at least one-half of the door’s height. More severe climates require larger overhangs. The industry term for the correct exposure ratio is “coefficient.”
High-performance materials. New advances in manufacturing technology have taken the worry out of wood doors. JELD-WEN now offers AuraLast wood for U.S.-produced pine wood doors and frames. Thanks to a revolutionary penetrating treatment process, AuraLast wood is guaranteed to resist termites and decay for 20 years, and AuraLast wood frames carry a lifetime warranty.
Periodic inspection and maintenance. Just like any other exterior surface, doors need cleaning and care each year. Homeowners should expect to refinish wood doors every two to five years. For solid wood doors, lightly sand, then wipe away dust with a clean cloth, slightly dampened with mineral spirits. For doors made of other materials, follow the manufacturer’s refinishing recommendations. Apply at least two coats of a fade-resistant exterior polyurethane with an ultraviolet inhibitor, following the manufacturer’s recommendations. Sand lightly between coats and be sure to finish all six sides of the door in the same manner.
Top Tips for Sprucing up the Front Entry
Once the entry door is properly finished and protected, homeowners may want to consider these inexpensive cosmetic upgrades.
1. Consider a new paint color. A touch of color for the front door gives the whole front of the home a lift. JELD-WEN’s new front door selector tool, offered at www.jeld-wen.com, allows homeowners to experiment with different looks online.
2. Install new hardware. This is one of the quickest and easiest ways to spruce up the front entry on your own. Be sure to consider how the color and finish of the hardware coordinates or contrasts with the color and texture of the front door, and select a low-maintenance finish. Examples of new hardware to consider are brass kick plates, door handles, door knockers, locks and even mail slots.
3. Incorporate house numbers and lighting at the entryway. House numbers are a huge trend in “exterior design.” With more stylish options available than ever before, this little weekend project makes a big impact at the front entry. Likewise, a matching exterior light adds a warm and welcoming ambience.
For more door care and maintenance tips from JELD-WEN or to browse new styles for replacement doors, visit www.jeld-wen.com.
Courtesy of ARA Content
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