Technology TransactionsSummer"s Here, Time for Mortgage Audits, Barbecue Safety, and Valuing Green Appliances
Mortgage Rates Tend Lower
After an upward bump earlier in the month, April mortgage levels fell to 5.79 percent for 30-year fixed-rate financing according to Freddie Mac. Borrowers are far better off than a year ago when the rate stood at 6.99 percent. In addition to interest, borrowers would also pay .6 points at closing.
Adjustable-rate mortgages are also at low levels. The 11th District Cost of Funds Index, a widely-used ARM index, stood at 2.257 for February -- a rate announced March 31st for use in April. Combine the index with a typical margin and many 11th District borrowers are paying under 5 percent for home financing.
Is this a good time to be a borrower? Rates are generally not as low as earlier in 2003, but they are extremely attractive relative to most rates seen during the past 20 years.
Mortgage Audits
Once a year it"s a good idea to review your mortgage to see where you stand with home financing.
Lenders now provide an annual accounting which shows such things as the interest paid during the year, your loan balance, and escrow account activity. This is important information, but in addition there are a few other items to check.
*Are local property tax records online? Does your lender pay the property taxes? If yes, check to make certain your property taxes have been paid in full and that no late charges have been assessed. Your real estate broker can tell you where to find such local information if it is online.
*Does your lender pay your property insurance? Check with your insurance broker to assure that all payments have been made and that your coverage is appropriate for your property.
* Did you make any mortgage prepayments during the past year? Have they been properly credited to reduce your loan balance -- or have they been applied to your escrow account?
*Have any late fees or other charges been placed against your mortgage account? If yes, are such charges correct?
*Are you paying private mortgage insurance premiums? If yes, do you have sufficient equity to cancel such coverage? For a general overview, see PrivateMI Cancellation Kit. For specific question, contact your lender.
Will Consumers Pay More For Green?
While the idea of saving money on fuel bills is often attractive, energy-saving systems and appliances are often more expensive than less efficient alternatives. So is it worth paying more to be green?
One way to measure to the financial benefits of fuel-efficient appliances and systems is to consider how much money you will save over a period of years. If it costs an extra $200 to buy a really efficient refrigerator but you can reduce fuel bills by $50 a year, then after four years you break even on the excess cost and each year thereafter that you own the appliance you actually pocket a few dollars.
But another benefit of green systems and appliances may emerge when you sell. According to a study by the Florida Energy Extension Service at the University of Florida and a Florida homebuilder, WCI Communities, "87 percent of consumers said they"d pay more for green home features if they recovered their expenses within five years."
Barbecue Safety Tips
With the weather warming up around the nation, barbecues are about to become more frequent. The U.S. Fire Administration offers these safety recommendations:
*Before using a gas grill, check the connection between the propane tank and the fuel line. Make sure the venturi tubes -- where the air and gas mix -- are not blocked.
*Do not overfill the propane tank.
*Do not wear loose clothing while cooking at a barbecue.
*Be careful when using lighter fluid. Do not add fluid to an already lit fire because the flame can flashback up into the container and explode.
*Keep all matches and lighters away from children. Teach your children to report any loose matches or lighters to an adult immediately. Supervise children around fireworks and outdoor grills.
*Make sure everyone knows to Stop, Drop and Roll in case a piece of clothing does catch fire.
*Call 911 or your local emergency number if a burn warrants serious medical attention.
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