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Energy-Efficient Mortgages

Monday, June 30, 2014

by Nancy Heim-berg

Homeowners can take advantage of energy-efficient mortgages (EEF) to finance improvement projects on their properties. An EEM, or a "green mortgage", is a loan that is meant to help pay for energy-efficient upgrades on a home that a homeowner currently owns or is in the process of purchasing. Costs for the home improvement projects are included in the original mortgage loan so that only one mortgage loan needs to be taken out on the property in question.

Although the maximum debt-to-income ratio for a home owner in regards to a mortgage loan is specified by the FHA, homeowners can bypass these rules if they qualify for energy-efficient mortgages. In this way, they can purchase a home with energy-efficiency improvements with an EEM that is higher in value than the home that they could have purchased via a traditional mortgage loan. Allowing homeowners to bypass debt-to-income ratio rules is justified with the idea that homeowners may pay more upfront, but will save money over time in lower energy costs. The process of qualifying for an EEM involves having an energy audit on a property.

Homeowners can take advantage of three different EEMs:

The Conventional EEM

The majority of homeowners who take out an EEM opt for a conventional EEM. This type of EEM allows the lender of a mortgage loan to add a certain value to the home purchaser's income that is deemed equivalent to the money that will be gained in energy savings through making any energy-efficiency renovations or upgrades.

The Federal Housing Administration EEM

Through a Federal Housing Administration (FHA) EEM, a borrower will acquire mortgage insurance for a home purchase or refinance. The costs of the proposed energy-efficiency improvements are incorporated into a homeowner's mortgage loan through an FHA EEM. However, borrowers must meet certain underwriting conditions to qualify for an FHA EEM. This type of EEM allows a borrower to borrow whichever is less: the complete costs of the proposed improvements, inspections, and report; or the lower amount between the value of the property minus five percent, 115 percent of the area's median price on a single family home, or 150 percent of the conforming loan limit as specified by Freddie Mac.

The Veterans Administration EEM

Veterans may qualify for certain green mortgages through the Veterans' Administration. Such loans typically are no more than between $3,000 and $6,000.

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Pending Home Sales Increase in March

Monday, June 23, 2014

by Nancy Heim-berg

Although market activity in regards to home sales has been notably low in recent months, sales figures showed that pending home sales increase in March. The National Association of Realtors has called attention to the fact that this marks the first time in nine months that home sales have risen.

The Pending Home Sales Index is a major market indicator that has attested to a recent rise in home sales. This forward-looking index has shown using data from contract signings that home sales have risen 3.4 percent since February. However, the Index still shows less activity in home sales than that which was recorded in March of 2013, when the Pending Home Sales Index reported 105.7 as opposed to the 97.4 figure from this March.

According to Lawrence Yun of the National Association of Realtors, a gain in home sales was highly predictable after the very stagnant home sales market that was seen over the winter. Yun has attributed the auspicious rise in home sales this past March to increased inventory on the market and a nationwide increase in job creation in recent months.

While the Pending Home Sales Index has shown an overall increase, it shows an unequal distribution in increases in home sales in different regions of the country. While the Index increased in the Northeast, a decrease was recorded in the Midwest of the country. Pending home sales showed a rise in both the South and the West, but they are still below the Index value of last year.

It is estimated that even if pending home sales increase in March, home sales in 2014 are unlikely to reach figures of 2013 due to a slow start early this year. According to estimates, sales on existing homes should come to slightly more than $4.9 million in 2014. This is down from $5.1 million last year. While home sales are expected to drop slightly in 2013, the overall median price on existing homes should increase by around 6 or 7 percent.

An important indicator in the home sales market, the Pending Home Sales Index records the state of sales that are in process on existing homes. The Index values are determined from data extracted from a large sample of existing-home sales across the country. A pending sale is considered to be a sale for which a contract has been sign but the resulting transaction has not been closed.

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Tips on Choosing the Right Color for the Home Interior

Monday, June 9, 2014

by Nancy Heim-berg

The right color for the interior of your home is whatever color you like; however, if you don't feel confident in your ability to develop a harmonious color scheme, here are some tips to awaken your inner home-interior muse.

There are literally thousands, or perhaps even millions, of shades, hues and other variations of color "spokes" on the color wheel. It can be overwhelming, even intimidating, especially of you are a first-time home interior painter.

One way to simplify the process of choosing a color scheme is via shrewd manipulation of color hues. You might already be aware of the inherent impact colors and their hues have on us humans. They can make us feel happy or sad; manic or docile; annoyed or soothed; excited or laid back, which is why it's crucial to select the proper shade within a color family in order to set whatever mood it is you're going for in each room.

Here are some simple tips to help you achieve your desired mood altering color scheme:

The amount of intensity a color displays is directly related to the amount of pigment within it
Bright colors tend to create an energetic, upbeat mood; whereas dim or dull colors have a relaxing, more toned down aura
Adding white creates a pastel hue or tint, softening the color's intensity
Adding black creates a deep, dark color hue, commonly referred to as a shade
Adding grey creates a comforting, neutral tone of a color
Earth tones (generally brown and green color variations) give off a warm, outdoor vibe
Dim hues of blue emanate a cool-breeze aura
Manipulate color intensity through hue, shade, tint or tone
Visualize each room painted in different colors
Dark-colored rooms feel cozy, but also small
Change a color's tone with complimentary colors around it

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National Existing Homes Sales the Strongest in 7 Years

Monday, June 2, 2014

by Nancy Heim-berg

Existing home sales, or home resales, showed a slight rise in December (2013), which followed a three-month downward spiral. High demand and record low interest rates for mortgage loans combined to breathe life into the tenuous recovery in the real estate market.

According to the National Association of Realtors, or NAR, total sales of previously owned homes last year reached a seven-year high. Sales climbed 1.0 in the aforementioned month, leading to a yearly rate of nearly 5 million units.

There's more good news. Household formation has begun to steadily dig itself out of a multi-decade-long low, brightening the mood and encouraging home builders to take on new projects.

Experts point to the head-to-head battle between escalating prices and relatively weak overall income growth as having the biggest impact on the market, making home buying an unreachable financial goal for a large number of Americans.

Buyers can't buy if sellers aren't selling. It is the lack of properties for sale on the market that's causing prices to rise.

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Displaying blog entries 1-4 of 4