AN UPDATE ON "WHAT KIND OF FURNACE TO BUY"

 

 

Actually I don't think I addressed this issue in a previous posting.  Here is a summary of what that posting might have looked like - IF YOU LIVE IN ANY OF THE 29 NORTHERN STATES, AS OF MAY 2013 THE DEPT. OF ENERGY (FEDERAL GOVT.) WILL DICTATE TO YOU THE TYPE OF FURNACE YOU MAY PUT IN YOUR HOME!!!

 

Here is the follow up - after being sued by the American Public Gas Association the feds have backed off  this ruling. The APGA maintained in their suit that such a ruling would force low income homeowners to swap their gas furnaces for electric and kerosene space heaters. I would like to know how they arrived at that conclusion. 

 

It's worthy to note that the ruling does not apply to boilers or hot water heating systems;  just gas forced air furnaces.  Also, it looks like these rules will be remanded to a commenting process so look for them to return in some form or another in the future.

 

Here are some interesting points!  The DOE claims that these new rules, if they go into effect, will cut our country's residential energy use by 20% between 2013 and 2045.  If this is true this would be quite significant and certainly something to consider.  It also claims that a high efficiency furnace can save the average home owner about $100.00 a year in energy costs - again, something significant. 

 

Those who are supposed to be "in the know" claim that the higher cost of installing a high efficiency furnace will force some to abandon their gas furnace for other options - don't know if that's a reasonable statement or not. 

 

No matter what, the bottom line here seems to be that the DOE at some point in time is going to finalize some rules on furnace replacement so if you  think you may not want to pay the extra $ to have a high efficiency furnace installed you may want to give some thought to replacing your furnace now or at best start putting a little $ away for when the time comes and your furnace takes a nose dive -GIVE IT SOME THOUGHT! 

 

 

 



ARE YOU LOOKING FOR SOME REASONS TO LOOK FORWARD TO 2013??

 

 

1.  Most people are quite optimistic about home values going up - they are not going to shoot up but I believe there will be positive movement.

 

2.  There should be more new households formed this year.

 

3.  Home buyers seem to have a greater sense of urgency - see # 6 below.

 

4.  Home ownership still remains a goal for members of the "Millennial" generation.

 

5.  Foreclosures look like they may fall to pre-housing-bust levels.



 

6.  Interest rates should remain relatively low during this year -informed home buyers are aware that rates will begin to rise soon.  Many of them want to beat the clock and are earnestly looking for a new place to call home.

 

7.  Loan demand for purchases seems to be on the upswing. 

 

8.  More homeowners seem to think this year will be a good time to sell.

 

9.  The number (and location) of improving housing markets is on the rise.

 

10.  New job opportunities are expected to provide a must-needed boost to the commercial sector. 

12.  As the economy improves and values rise equity will return and fewer home owners will be underwater.

13.  Real estate is contributing to the overall economic recovery.

 

SENIORS - BE CAREFUL WITH REVERSE MORTGAGES!!!!!!!!!!!

 

 

Defaults on reversE mortgages aer reaching record highs and in some cases these types of loans are being blamed for turning seniors out of their homes!!  You have all probably seen the TV ads hosted by an actor, former senator, etc. promoting reverse mortgages.  They sure make them look like (as my kids would say) a "sweet deal".  Maybe, maybe not. 

 

If you are 62 years or older you can apply to borrow money against the equity in your home by executing a reverse mortgage.  These loans don't have to be repaid until you either move or you die.  Typically these types of mortgages are seen as a way to fund one's retirement by pulling the equity out of your home - equity you have worked hard to build up. 

 

Reverse mortgages make sense for some people - BUT NOT ALL PEOPLE!!  So be careful when you are considering this type of financing.  Think it through and ask for the advice of others that you trust.  AnD remember, you still have to pay taxes, insurance, and maintenance.

 

It seems that some lenders are advertising these types of loans as "free money"!!!  NOT TRUE!!  Just as with any type of loan you take out THERE ARE RISKS!!!  So again, always seek others advice.  One person you may want to talk to would be your attorney. 

 

According to a report in the New York Times several widows across the country have come forward saying they are facing foreclosure and eviction following their spouse's death because they were not included on the reverse mortgage deed - remember I said above to check with your attorney!!  These widows say they have no claims to live in the home unless they purchase it outright following their spouse's death.

 

The CFPB is working on a new set of rules for improving the disclosures on a reverse mortgages and the hidden risks as well as more supervision of lenders who issue these loans.  Meanwhile, be careful if you are considering a revers mortgage and again, SEEK COMPETENT ADVICE.

SEEMS LIKE EVERYONE IS IN DEBT THESE DAYS-EVEN THE FHA

 

The FHA was created about 78 years ago (during the great depression) to promote stability in the housing market and allow middle class families to attain the dream of "home ownership".  Have they done a good job?? - yes they have!! 

 

However, as predicted by a number of economists, this depression-era for homeowners seems to be going broke and may have to dip into the US treasury to keep it afloat.  Does that sound familiar?  And "wow" an audit seems to indicate that the shortfall will be in the 16 billion range.  This problem seems to be the result of the rolling housing debacle of the last decade.  Think of it - it only took about 10 years to undo 78 years of great service by FHA. 

 

I think it's fair to say though that without the FHA the current housing crisis might have been lots worse -but not without stress.  In times of crises when private financial institutions have fled the marketplace and have consistently failed to step up to the plate the FHA has remained steadfast. 

 

It will be interesting to see what steps the FHA takes to meet their current challenges.  Will they raise premiums; will they tap into the US treasury - who knows!!  It will be interesting to watch.

 

We will try to keep you up to date.



 

 

THE NEW EMERGENCY FORECLOSURE ASSISTANCE FUND

 

 

The recent landmark joint federal-state settlement involving the nation's five largest mortgage services will provide additional resources for foreclosure prevention services in Iowa through the Iowa Mortgage Help initiative. 

 

There is a new tool now available to eligible (and I emphasize eligible) homeowners through the new Emergency Foreclosure Assistance Fund.  This fund may assist homeowners in filling gaps to make their mortgage payment with up to $2,000 in assistance.  The program could possibly help about 500 Iowa homeowners avoid default and foreclosure.

 

Iowa homeowners who are behind, or feel they may soon be behind, on their mortgage are encouraged to seek assistance by calling eh toll-free Iowa Mortgage Help hot line at 877-622-4866.

 

This initiative is a partnership between the Iowa Attorney General's Office and the Iowa Finance Authority that offers free, confidential help from local, trained counselors. 

 

IF YOU KNOW OF ANYONE WHO MIGHT BENEFIT FROM THIS PROGRAM PLEASE LET THEM KNOW!!!!!!!!!!!!

PRICE YOUR HOME TO SELL

Home Gain.com, a real estate services website revealed that 76% of homeowners believe their home is worth more than the list price recommended by their real estate agent - what the heck, my home is worth more just because I live in it!!

Home buyers usually have a better grasp of current home values where they are looking to buy than sellers who live there do.  Buyers look at a lot of new listings - they make offers, know what sells quickly and for how much - AND they know what doesn't sell and why. 

Soooo- your home is worth what a buyer is willing to pay for it given current market conditions.  Unfortunately, this may not be the same as your opinion of what your home will sell for, or what you hope it is worth.  Relying on emotion rather than logic when selecting a list price for your house can lead to disappointing results. 

Your home will be most marketable when it is new on the market.  Buyers wait for new listings, and usually it's the new listings that receive the most showings and have the busiest open houses.  So don't forget that when your house is newly listed it's the best opportunity for your agent to show your house off - but don't forget it's the list price that will entice the buyer to look.

When establishing a list price for your house it helps to understand how real estate professionals and appraisers establish an expected selling price or price range for your home. Both research the recent listing inventory of homes similar to yours that have sold in the past 12 months and then they make plus and minus adjustments for the differences.  So, let's say that the house next to yours which sold 3 months ago for $150,000.00, is an exact duplicate except that yours has a fireplace. They would add the value of the fireplace (say $2,500.00) to the $150,000.00 and arrive at a probable value for your home of $152,000.00.  It can be a little more complicated than that but it gives you some idea of the process.

It's sometimes difficult for sellers to step back and take an attitude of detached interest in their home.  But, it's essential to do so if you want to sell successfully in any market. Don't rely on rumors circulating in the neighborhood about how high a home sold.  Prices tend to get inflated when passed from one person to another.  Select your price based on facts.  Beware of the agent who is willing to take your listing at any price!!  They are not working in your best interest.

FALL IS COMING!! DON'T LIGHT THAT FIRE UNTIL YOU HAVE YOUR CHIMNEY CHECKED!!!!!!

So you are chopping and stacking wood for that pleasant evening fire this winter.  When is the last time you had your chimney cleaned.  Here is some information on chimneys that may be of interest to you . 

As wood burns not all of it is consumed, and what isn't consumed goes up your chimney in the form of creosote and soot.  Creosote is a thick, oily (oil burns when it reached a certain temp) material that results from the distillation of wood smoke which solidifies as it cools. Soot on the other hand is basically particles of partially burnt material that builds up in chimneys.  If enough soot and creosote build up they can clog your chimney.  That's not good, but what is worse is if the temperature in the chimney gets hot enough the build up of creosote in the chimney can ignite.  I have seen chimney fires destroy entire homes.  Since the fire usually starts in the attic area it can go unnoticed until it is too late. 

What's the solution?  Either clean the chimney yourself or hire a qualified chimney sweep.  Notice I said "qualified".  Make sure they are licensed, bonded and insured.  I had a neighbor once have an unqualified sweep clean his chimney and he ended up with a house full of black soot.

So you want to do it yourself!!!  You can probably get the supplies you need at any fireplace shop or hardware store. Go on line and google "how to clean a chimney" and follow the directions.  However, don't be surprised if you end up with a house full or black soot. 

How often should you clean your chimney?  Depends!!  If you are in the habit of damping your fire down and depriving it of oxygen (bad idea) so it will burn longer the result will be more smoke and more partially burnt solids.  These solids can build up rapidly and the chimney will get much dirtier more quickly.  So you clean more often.  Make a visual inspection to determine what's appropriate for your situation. 

ENJOY YOUR FIRES THIS WINTER!!!