Posts filed under 'Home Ownership'
By Sandy Boda
Executive Officer, Home Builders
Association of Midwest Georgia
Just like
the human body, your home is made of parts, all working in unison, many unseen and unthought of during the course of your daily life. From the roof to the foundation, and from the front door to the back, a home consists of literally thousands of components.
Ideally, these components might all have an unlimited life expectancy. But given the realities of day-to-day use, how long can a home owner reasonably expect a home component such as a window or roof to last?
A new study conducted by the National Association of Home Builders (NAHB) and sponsored by Bank of America Home Equity provides insight into the life expectancies of a number of products in the home. The study intentionally overlooked consumer preferences, acknowledging that if they were considered, kitchen counters would be replaced long before the end of their useful life, and rooms may be repainted only once in 50 years. Other factors that can have a significant effect on life expectancy include maintenance, proper installation, the level of use and the quality of the materials. And some components, while remaining functional, become obsolete due to changing technology or improvements.
Insulation
According to the study, all types of insulation can be expected to last a lifetime if they are properly installed and are not punctured, cut, burned or exposed to ultraviolet rays and are kept dry. Proper installation not only extends the lifetime of your insulation, it also ensures that it will perform properly, resulting in reduced energy use and expenses, as well as increased home comfort.
Windows
Windows, because they can be exposed to extreme weather conditions, have a much shorter life expectancy. The study, which polled experts in the various fields, found that aluminum windows can reasonably be expected to last 15 to 20 years and wooden windows can last upwards of 30 years. An important element of maintaining your windows is the window glazing — the putty that secures the glass to the sash. Over time, this glazing can crack, resulting in drafty and loose panes. Available at any hardware store, glazing can be replaced by simply chipping or scrapping off the old putty, cleaning the window thoroughly and installing new glazing with a putty knife or caulking gun. Some types of glazing require a coat of latex paint for weatherproofing.
Roofs
Like windows, the life expectancy of a roof depends on local weather conditions as well as appropriate maintenance and quality of the materials. Slate, copper and clay/concrete roofs can be expected to last more than 50 years. Roofs made of asphalt shingles should last for about 20 years; fiber cement shingles should last about 25 years; and wood shakes for about 30 years. In regards to roof maintenance, it’s important to be proactive to prevent emergency and expensive repairs. Look for include damaged or loose shingles; gaps in the flashing where the roofing and siding meet vents and flues; and damaged mortar around the chimney (especially at the joints, caps and washes). If you see any signs of damage, call a professional to repair it.
Paint
Although some avid decorators may repaint every six months, homes usually need to be painted every five to 10 years depending on the content of the paint (its glossiness), its exposure to moisture and traffic. Quality paints are expected to last upwards of 20 years. Exterior paint conditions should be regularly monitored in order to catch problems early on. Assessing paint for dirt, mold, cracking, peeling, fading and rusting — and repairing immediately, usually through simple cleaning methods such as scrubbing or power washing — can end up saving homeowners much more costly repainting jobs in the long term.
Remember, these numbers are averages, with usage, weather, maintenance and a number of other factors influencing life expectancy. Chances are, changing trends will dictate a shorter life span, as homeowners update and remodel their homes. For more information on home maintenance, visit the National Association of Home Builders online at www.nahb.org/forconsumers, or contact your local home builders association office.
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(Sandra J. (Sandy) Boda attended the 2007 International Builders Show in Orlando, Fl. The HBA of Midwest Georgia serves a membership of approximately 800 builders and associatie members in Fayette, Coweta, Spalding, Meriwether, Heard, Pike, Upson, Lamar, Butts and Jasper Counties. The association can be contacted at 770-716-7109 or at hbamwg@bellsouth.net.)
August 1st, 2007
By Mike Daughtry
President, Home Builders Association of Midwest Georgia
Before you settle on the house of your dreams, it’s essential to find the right lender. Knowing how much home you can afford before you start searching will help the home buying process go that much smoother, and the right lender also can help you determine what mortgage works best with your financial situation. Here are ten questions you should ask potential lenders before making your final selection.
1. What is the Interest Rate & Annual Percentage Rate?
The annual percentage rate (APR) is determined by a complex calculation that includes the interest rate and all the related lender fees divided by the loan’s term. Keep in mind however that there is no way to accurately compute an APR for an adjustable loan, and APR doesn’t account for early payoffs. If you decide on an adjustable rate, investigate how often it can change, and if it has a maximum annual adjustment. A few points increase in interest rates can make a big difference in your monthly payment.
2. What are all the costs?
There are many fees and costs associated with any third party involved in a mortgage transaction. These can include the appraisal, credit report, lender’s title policy, pest inspection reports, and taxes, among others. Find out about all these costs before finalizing a loan. Lenders are required to provide a written good faith estimate of closing costs within three days of receiving a loan application.
3. Which type of loan is best?
The right lender will ask a lot of questions about you and your financial situation before suggesting loan options. Don’t hesitate to ask about the pros and cons of the different options: fixed-rate loans, adjustable-rate loans, interest-only loans, Negative-amortization loans, and others.
4. What are the qualifying guidelines for this loan?
Depending on the loan, the qualifying guidelines may relate to your debt-to-income ration, credit history, employment, assets or liabilities. If you are participating in a first-time buyer program, a VA loan or other government-sponsored mortgage programs you may be able to find a loan program with easier qualifying guidelines. Ask your lender to thoroughly explain to you the guidelines for any loan, and which one works best with your situation.
5. How many discount and origination points will I pay?
When people want to find out how much their mortgages cost, lenders often give them quotes that include both loan rates and “points.” Points “buy downâ€? the interest rate of a loan. Therefore, the more points you pay, the lower the interest rate, and vice versa. Each point is equal to one percent of the loan amount. So, two points on a $100,000 loan costs $2,000. Discount points are tax deductible, and are actually prepaid interest on the mortgage loan. Origination points are charged by the lender to cover the costs of making the loan. The origination fee is deductible if it was used to obtain the mortgage and not to pay other closing costs.
6. Is there a prepayment penalty on this loan?
Many mortgages charge a penalty for paying off the loan before the end of the time period. The penalties vary; some are one percent of the loan total, others are equal to six months’ interest and some others apply only when you refinance. Find out upfront if your loan carries such a penalty, and what it would cost if you decided to prepay. Some lenders offer lower interest rates to buyers who accept prepayment penalties.
7. Do you offer loan rate locks?
Interest rates fluctuate daily and can change from the day you apply for a loan to when you close it. If you think interest rates are moving up, you can lock your loan rate. Ask your lender about fees to lock your interest rate, how long they lock it for, and if the lock-in protects all loan costs. If you do end up locking your loan rate, make sure to get the details in writing
8. Who will service the loan? Your bank or another company?
Underwriters review loans and issue conditions before approving or rejecting a loan. Ask if the lender does this in-house or uses another company. The answer can make a difference in the amount of time the loan takes to process.
9. How long will the loan approval process take?
In most cases, it takes between 21 and 60 days. Ask your lender what the anticipated turnaround time is and what possible obstacles could delay that. You’ll need to coordinate with your lender to determine the closing date for any purchase contract.
10. What might delay approval of my loan?
The more accurate you are in your loan application, the smoother the process will go. Notify your lender if your financial situation changes, if you change jobs, incur additional debt or change martial status between applying for and receiving the loan. Check your credit report before applying for a loan to ensure that everything is accurate and up-to-date.
For more information on selecting a lender, contact your local home builders association. To find out why now is a great time to buy, visit HYPERLINK “http://www.nahb.org/timetobuy” www.nahb.org/timetobuy. To subscribe to NAHB’s free consumer e-newsletter on all things home, visit HYPERLINK “http://www.nahb.org/housekeys” www.nahb.org/housekeys.
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(Mike Daughtry, who is president of Hilpine Builders Inc. and publisher of 20 South Magazine, is the current president of the Home Builders Association of Midwest Georgia. One of the top 100 Home Builders Associations in America, the HBA of Midwest Georgia serves over 800 members in Fayette, Coweta, Spalding, Meriwether, Heard, Pike, Upson, Lamar, Butts and Jasper Counties. For more information about the group contact Executive Officer Sandy Boda at (770) 716-7109.)
May 31st, 2007
By Jerry Nesbitt
Coldwell Banker Bullard Realty
There is a saying in the real estate business when the question is asked, “When is the best time to buy a home?� The answer, which is true, is “Now�.
There are many benefits to purchasing a home now. First, prices of homes are down from record highs. Also, the real estate industry has the highest inventory levels of homes in over 20 years, (see www.cbbullard.com). There are several reasons for this. The glut in home mortgages that are in default and over building by some builders in certain areas of the country has caused them to provide larger incentives to buyers to purchase their homes. Both of these should allow you to build equity in your home faster. Second, interest rates are still very low. For qualified buyers, a 30 year fixed rate mortgage is in the low 6% range. And last, the enjoyment of owning your own home is the greatest benefit.
I would suggest that your find a professional realtor who works for a company who has been through the ups and downs of the real estate market over the years and “purchase your home now�.
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(Jerry Nesbitt is general manager of Coldwell Banker Bullard Realty, which has seven offices in the Metro Atlanta area and is the parent company of Coldwell Banker American Land Mart. This column originally appeared in the “Bullard Blog�, a regular feature of the company’s website at http://www.cbbullard.com/. He can be contacted at 770-477-6400, or email nesbittj@coldwellbanker.com.)
May 16th, 2007
By Mike Daughtry
President, Home Builders Association of Midwest Georgia
Americans remain highly confident about the nation’s housing prospects, with more than four out of five home owners expecting the value of their home to appreciate over the next five years and nearly seven out of 10 calling it their most valuable investment, according to results from a new nationwide survey.
The poll clearly debunks the more sensational media reports speculating on the demise of the housing market. And it is interesting to note that other polls conducted by major news organizations have come up with similar results, indicating that despite the current housing market downturn Americans resoundingly believe that buying a home is the best investment they can ever make.
The survey of 2,000 households, including more than 1,750 registered voters, was conducted by RT Strategies between Oct. 26-29, 2006.
The polling found that 81 percent of home owners believe that the value of their homes will rise over the next five years. Only 13 percent felt their home would fall in value, while 4 percent expected no change and 3 percent were unsure. In addition, 69 percent of the respondents listed their home as their most valuable investment. By contrast, this was followed by 401(k) and other retirement accounts, with just 11 percent of those polled citing this as their top investment.
Looking ahead, the National Association of Home Builders said the housing market is poised for solid and sustained growth in the future.
Currently the market is in the midst of an inevitable adjustment following the housing boom of 2004-2005 when housing market activity soared to unsustainable levels. Housing demand should stabilize in short order and the downward adjustment to housing production should run its course by mid-2007. The market that emerges from this correction will display good balance between supply and demand and move to a healthy and sustainable trend based on solid underlying fundamentals.
In the meantime, for more reasons why housing is a great investment, and why now is a great time to buy, visit www.nahb.org/timetobuy . To sign up for NAHB’s free consumer e-newsletter, visit www.nahb.org/housekeys .
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(Mike Daughtry, who is president of Hilpine Builders Inc. and publisher of 20 South Magazine, is the current president of the Home Builders Association of Midwest Georgia. One of the top 100 Home Builders Associations in America, the HBA of Midwest Georgia serves over 800 members in Fayette, Coweta, Spalding, Meriwether, Heard, Pike, Upson, Lamar, Butts and Jasper Counties. For more information about the group contact Executive Officer Sandy Boda at (770) 716-7109.)
January 11th, 2007
By Sandy Boda, Executive Officer
Home Builders Association of Midwest Georgia
The New Year is just around the corner and millions of Americans are once again agonizing over which resolutions they will take with them into 2007. The gym membership will be renewed, with promises that it won’t go unused after February 1. This will be the year you will fall in love, quit smoking, get a better job and finally go through the ominous stack of files that have been in the attic since 1985. Right?
Why not make this year’s resolution one that will last long into the future — long after you’ve stop bothering to set the alarm an hour early to go for a run and decided that attic organization is overrated. Buying a home is one of the best investments you can make. Resolve to assess your finances and get on the path to homeownership with these following tips.
First of all, figure out how much you can afford. This depends on many factors, including your credit rating, your current expenses, cost of a down payment, and interest rates.
The National Association of Realtors (NAR) recommends that potential buyers check their credit report carefully. This can be an important step. According to NAR, buyers with inaccurate information on their credit report may have a hard time obtaining financing, or may be offered loans at higher-than-market interest rates. Work with a qualified lender on getting together a budget and collecting helpful advice before buying a home.
When shopping for a mortgage, consider all of your options. The Mortgage Bankers Association (MBA) recommends that potential buyers build a list of lenders you are interested in to stay organized. Word of mouth also can be powerful, and MBA recommends talking to people you know that own their home and see how they like their lender. Don’t fill out any paperwork until you have met with several lenders on your list and don’t settle for your first offer. There are many options in terms of a loan and not every option is right for every buyer. Make sure you are dealing with someone you trust and work well with.
Don’t forget that you will need a down payment up front and money to make monthly mortgage payments. Keep in mind that tax advantages to being a homeowner can help offset these costs. Being late on these payments can lead to foreclosure in a worse case scenario, so be realistic and shop around until you find something in your price range. Familiarize yourself with the mortgage process before you begin looking for a home. You will have a better idea of what is and is not in your price range. Don’t forget to research Federal Housing Administration programs that offer lower down payments. They are often a good option for first-time buyers. Get educated about topics such as predatory lending and fair housing laws. Make sure that you know your rights and are alert to anything that seems off.
Learn about the areas and neighborhoods you are interested in buying. The internet can be a great resource when home shopping. According to NAR, 77 percent of potential home buyers use the internet to search for homes. Shop extensively and don’t limit yourself to just one neighborhood. In today’s market, you may be surprised at how much house you can realistically afford. Find a real estate agent that you trust and you feel represents your needs well.
Deciding to become a homeowner is possibly the best resolution you can make, and one that will last long after future resolutions come and go. Find out what current homeowners already know. According to a recent nationwide survey, 69 percent of homeowners think of their home as their most valuable investment. By contrast, this was followed by 401(k) and other retirement accounts, with just 11 percent citing this as their top investment.
With careful and thoughtful planning, you will be moving into your new home before you know it. If you have questions about the home buying process, contact youR local Home Builders Association or visit the National Association of Home Builders at www.nahb.org/timetobuy. To sign up for NAHB’s free consumer e-newsletter, visit www.nahb.org/housekeys.
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(Sandra J. (Sandy) Boda is executive officer of the 650-member Home Builders Association of Midwest Georgia, and she has also been serving as president of the Georgia Executive Council (GEOC) for the Home Builders Association of Georgia for the 2005-2006 year. As executive officer of the Home Builders Association of Midwest Georgia since December 2001, she coordinates the association-related activities of HBA members in 10 counties , including Butts, Coweta, Fayette, Heard, Jasper, Lamar, Meriwether, Pike, Spalding, and Upson. )
December 15th, 2006
By Jeff Waddle, President
Home Builders Association of Midwest Georgia
“The Strength of a Nation Lies in the Homes of its People”
Spoken by Abraham Lincoln more than 140 years ago, those simple words eloquently convey a timeless truth. Homeownership and housing are essential to the strength and vitality of a nation; their value is virtually immeasurable.
Homeownership is the cornerstone of family security, stability and prosperity. It strengthens the nation’s communities, encourages civic responsibility and provides a solid foundation from which Americans can work to support their families, enhance their communities and achieve their personal goals.
Equally important, housing is a crucial component in the nation’s economy and in individual financial security. New home construction and remodeling provide millions of jobs and generate billions of dollars in wages and tax revenues each year.
Furthermore, homeownership is a key to building personal wealth and financial security.
Housing’s Contribution to Individual Wealth
Owning a home provides more than shelter and a stable place to raise a family. For the majority of American households, homeownership is the steppingstone to a future of financial security.
In the past five years, the market value of homes owned by U.S. households has soared from $8 trillion to stand at nearly $12 trillion. Furthermore, housing equity - the value of a home minus any mortgage debt - increased by the same proportion over this time frame.
Home equity accounts for more than half of the total net wealth of the typical home owning family, making homeownership the primary source of a household’s net worth and the fundamental first step toward accumulating personal wealth.
For most people, a home provides not only a place to live, but also serves as a sound investment, producing a solid rate of return with a low risk of loss. Since 1980, home prices have increased at an average rate of about five percent annually and have never shown an annual loss. Although stock values increased at a higher rate, they were much more volatile, and the stock markets posted significant declines over the past two years. Moreover, a home is an investment in the future, a durable product that will provide services for many years.
Homeownership and its Benefits
Homeownership strengthens the social fabric of the nation. By encouraging civic participation and involvement in schools and communities, and inspiring the upkeep and improvement of the home, homeownership fosters good citizenship.
Safe, decent and comfortable housing in general, and homeownership in particular, are also a positive influence in children’s lives. Children of home owners stay in school longer and are more likely to become productive citizens, according to a study by The University of Chicago. The benefits to children are even more pronounced among low-income households, the study found.
The nation’s homeownership rate has increased dramatically during the past 50 years. From about 44 percent at the end of World War II, it has grown to a record 67.8 percent. And although some other countries may have slightly higher homeownership rates, America’s home owners live in houses that are larger, more comfortable, and have more amenities than homes in any other major country.
The value of housing and homeownership to the nation and its people just cannot be overstated. America’s strength truly does lie in the homes of its people.
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(Jeff Waddle, who is with David Weekley Homes, is 2005-’06 president of the Home Builders Association of Midwest Georgia, which serves a membership of approximately 650 builders and associate members in Fayette, Coweta, Spalding, Meriwether, Heard, Pike, Upson, Lamar, Butts and Jasper Counties. The Midwest Georgia association can be contacted by calling 770-716-7109 or at hbamwg@bellsouth.net. Formerly Southeast project manager for David Weekley Homes, Jeff became the company’s senior manager for Hilton Head/Savannah in February of this year.)
June 6th, 2006