3…2…1…Happy New Year! If you’re like me, you probably stayed up a little later than normal this New Year’s Eve to help usher in 2010 with Dick Clark and the masses in Times Square. You may have downed a glass of champagne in celebration or shared a kiss with that special someone in your life. However, as the Waterford crystal ball dropped to kick off the new decade, you were probably unaware that it was also a new beginning for the world of home mortgage financing.
On January 1, 2010, The U.S. Department of Housing and Urban Development issued a much anticipated mortgage reform that will impact all buyers that use financing to purchase their home. HUD now requires lenders and mortgage brokers to provide consumers with a new & improved Good Faith Estimate (GFE) that discloses key loan terms and closing costs. This new GFE is designed to make it easier for borrowers to more clearly understand the settlement charges and terms of their loan.
To further clarify the impact and costs of various interest rates and fees, HUD has also added a new page to the HUD-1 Settlement Statement. This new form will allow consumers to compare their final loan terms and closing costs with those on the original Good Faith Estimate provided by their lender. This additional page will also include a reference to the relevant line from the GFE, making it easy for the borrower to compare the two forms.
HUD’s nationwide reform effort will also provide clear answers for important consumer questions such as:
• What are the terms for the loan?
• Is there a fixed interest rate or can it be changed?
• Is there a pre-payment penalty if the borrower chooses to refinance at a later date?
• Is there a balloon payment?
• What are the total closing costs?
TIP TO HOME BUYERS: These new reforms are intended to make the home financing process easier to understand for buyers, but that does not mean that it’s easier for everyone. The changes will add additional stress (and paperwork) for mortgage lenders, which could possibly slow the approval process. To expedite the process, make sure that when your lender asks for any additional documents (proof of income, bank statements, etc) that you submit these forms in a timely manner. This will ensure that the process continues to run smoothly, and that your loan can close on time.
All-in-all, HUD’s reform should be seen as a positive thing, as it has made it easier for home buyers to shop for lower cost mortgages and avoid potentially harmful loan offers from unscrupulous lenders. In fact, the additional clarity and transparency provided by these changes is estimated to save consumers an average of $700 per closing, which can go a long way in helping buyer’s with the many expenses of moving into a new home.
If you would like to find more detailed information on the new reform you can visit www.hud.gov.
Happy Home Shopping!
Friday, January 15, 2010
Thursday, January 7, 2010
Winterize Your Home...And Save Big!
Winter is a word not often uttered in the “sunshine state” of Florida, but the frigid season is definitely upon us and making itself known! Orange farmers are not the only ones making preparations for a colder-than-normal winter, and as the temperatures drop, it’s time for all of us to start thinking about ways to “winterize” our homes.
Here are 10 ways to make this season a little warmer for you and your family, while at the same time saving money and energy in the process!
1. Catching the Culprits: The first step in making your home “comfy and cozy” is finding the places where heat is leaving your home, and cold air is coming in to take up residence. Run your hand along windows and doors, checking for any cold spots. As a quick test, take a sheet of paper and close a door or window on it. If you can slide the sheet of paper out with ease, and it doesn’t tear, you are losing heat.
2. Window Pains: Windows are heat-losers, and thus money-losers. If you have older windows, now is certainly the time to think about replacing them with newer energy-efficient ones. Also, opening blinds and drapes during the day, especially the south facing ones, will allow sunlight and heat into your home. However, make sure to close them at night.
3. Install & Check Smoke and Carbon Monoxide Detectors: Make sure your smoke and carbon monoxide detectors are working properly and replace the batteries with a fresh set. Keeping a fire extinguisher on hand isn’t a bad idea either.
4. Seal the Air: Installing some weather stripping not only helps keep in the heat, but also helps the durability of your home, and it’s pretty inexpensive. There are many different types of weather stripping available; felt, vinyl, and metal. Make sure to add an extra 10-15% when measuring door frames and windows to ensure you purchase enough to complete the job. Caulking is another way to seal air and save energy, as are draft dodgers.
5. Flue Season: Make sure you don’t forget to close your chimney flue damper when it’s not in use. You may also want to think about installing glass doors on your fireplace. Another option is what is known as a chimney balloon, which is a plastic balloon that fits just under the damper. If you decide to go that route, just make sure to measure and get the correct size or you may not see the savings you desire.
6. Prevent Plumbing Freezes: Drain your garden hoses and sprinkler pipes to prevent your pipes from freezing and breaking. Also, be sure and insulate exposed plumbing pipes.
7. Examine Your Insulation: As you climb into your attic to put away Christmas decorations, take a quick inventory of your existing insulation. It may be time to replace it, or at the very least to add to it. Service your heating system as well, and remember to change the filter monthly. Move any furniture or other household items that may be blocking vents in your home.
8. Preparing the Outside: Bring sensitive potted plants inside or move them to a sheltered area. Seal the driveways, outside patios, and wood decks. Now would also be a good time to move debris out of the gutters and check along the foundation for cracks or other areas where heat may be escaping (or letting rodents in…Yuk!).
9. Prepare an Emergency Kit: Although it’s not likely we will get hit by a blizzard or snowstorm here in the Gulf Coast, it never hurts to be prepared for a power outage. Get some flashlights, candles, a blanket or two and some bottled water together. If nothing else, you’ll be a little ahead of the game when hurricane season comes along again.
10. Watch the Thermostat: Cranking the heat up isn’t always the best option, especially for your wallet. Try grabbing a sweater or blanket before automatically reaching for your thermostat. A nice cup of hot cocoa and a blanket make for a cozy alternative.
Enjoy the winter season and stay warm!
Here are 10 ways to make this season a little warmer for you and your family, while at the same time saving money and energy in the process!
1. Catching the Culprits: The first step in making your home “comfy and cozy” is finding the places where heat is leaving your home, and cold air is coming in to take up residence. Run your hand along windows and doors, checking for any cold spots. As a quick test, take a sheet of paper and close a door or window on it. If you can slide the sheet of paper out with ease, and it doesn’t tear, you are losing heat.
2. Window Pains: Windows are heat-losers, and thus money-losers. If you have older windows, now is certainly the time to think about replacing them with newer energy-efficient ones. Also, opening blinds and drapes during the day, especially the south facing ones, will allow sunlight and heat into your home. However, make sure to close them at night.
3. Install & Check Smoke and Carbon Monoxide Detectors: Make sure your smoke and carbon monoxide detectors are working properly and replace the batteries with a fresh set. Keeping a fire extinguisher on hand isn’t a bad idea either.
4. Seal the Air: Installing some weather stripping not only helps keep in the heat, but also helps the durability of your home, and it’s pretty inexpensive. There are many different types of weather stripping available; felt, vinyl, and metal. Make sure to add an extra 10-15% when measuring door frames and windows to ensure you purchase enough to complete the job. Caulking is another way to seal air and save energy, as are draft dodgers.
5. Flue Season: Make sure you don’t forget to close your chimney flue damper when it’s not in use. You may also want to think about installing glass doors on your fireplace. Another option is what is known as a chimney balloon, which is a plastic balloon that fits just under the damper. If you decide to go that route, just make sure to measure and get the correct size or you may not see the savings you desire.
6. Prevent Plumbing Freezes: Drain your garden hoses and sprinkler pipes to prevent your pipes from freezing and breaking. Also, be sure and insulate exposed plumbing pipes.
7. Examine Your Insulation: As you climb into your attic to put away Christmas decorations, take a quick inventory of your existing insulation. It may be time to replace it, or at the very least to add to it. Service your heating system as well, and remember to change the filter monthly. Move any furniture or other household items that may be blocking vents in your home.
8. Preparing the Outside: Bring sensitive potted plants inside or move them to a sheltered area. Seal the driveways, outside patios, and wood decks. Now would also be a good time to move debris out of the gutters and check along the foundation for cracks or other areas where heat may be escaping (or letting rodents in…Yuk!).
9. Prepare an Emergency Kit: Although it’s not likely we will get hit by a blizzard or snowstorm here in the Gulf Coast, it never hurts to be prepared for a power outage. Get some flashlights, candles, a blanket or two and some bottled water together. If nothing else, you’ll be a little ahead of the game when hurricane season comes along again.
10. Watch the Thermostat: Cranking the heat up isn’t always the best option, especially for your wallet. Try grabbing a sweater or blanket before automatically reaching for your thermostat. A nice cup of hot cocoa and a blanket make for a cozy alternative.
Enjoy the winter season and stay warm!
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