"Interest-Rate Decline Leads to Drop in Mortgage Rates to as Low as 5 Percent"
Wall Street Journal (09/14/98) P. B11C; Byrt, Frank

Interest rates on mortgages have fallen to the point where it is possible for home buyers to purchase a mortgage with an interest rate as low as 5 percent. These borrowers typically must make a higher down payment, but if they have the funds, they can take advantage of rates that haven't been this low since the late 1960s. Norwest Mortgage currently offers these low-rate loans, but they come with more points. The mortgage-backed securities market has also been affected by the market, as mortgage traders are seeking loans to purchase at 5.5 percent rates. Because most mortgage borrowers look for loans with no points, the market for low-rate loans isn't likely to gain too much strength, according to Inna Koren of Prudential Securities Inc.

"Home Sweet Houseboat in Sausalito"
Los Angeles Times--Washington Edition (09/14/98) P. B1; de Turenne, Veronique

In the community of Sausalito in Marin County, Calif., houseboats have become both a pleasing and a more affordable type of housing. The median home price in Marin County is now $375,000, according to John Karevoll of Acxiom/DataQuick Information Systems, and it is the hottest real estate market in the nation. More than 400 families own houseboats in Sausalito, and although houseboat prices have risen considerably since they became popular, they are still more affordable than land-based homes. But aside from saving money, families also appreciate the unique lifestyle that comes with living on a houseboat. The styles of each boat vary from their names to their structures. The houseboats in Marin County first became popular following the earthquake of 1906, and after World War II, they emerged once again. Today, the Bay Conservation and Development Commission has authorized about 400 houseboats. The homes must pass Building Department inspections and have occupancy limitations. More than 60 percent of houseboat owners are over 40, more than half have incomes over $60,000, and many are self-employed or professionals, according to the Floating Homeowners Association.

"Tax Notice Doesn't Add Up"
Miami Herald (09/12/98) P. 1B; Finefrock, Don

Homeowners in Miami-Dade County who live in residences that are classified as duplexes may be paying too large of a tax bill on their property. Just last week, the county lowered the property assessment of a homeowner after it realized that his guest house was not being rented out. "That would be the key," said Herb Parlato, Deputy Property Appraiser for Miami-Dade. "That's what we are looking at, for someone to tell us it's one family. It's still two units, but one family." In the county, there are some 23,000 duplexes. For such units, the state law that caps property owner's assessments at 1.7 percent this year does not apply, so their assessments could soar by as much as 3 percent.

"Two New York Area Home Buyers Win Cash for First Home"
PRNewswire (09/12/98)

Two New York families were recently awarded $1,000 each to be applied to the closing costs of a first home in the metropolitan area. The awards were contributed by the Fannie Mae Foundation and were presented at the Fannie Mae Foundation and New York Knicks Free Home-Buying Fair. Winners were chosen based upon their essay responses to "What Owning a Home Means to Me." At the fair, the Fannie Mae Foundation provided homebuyers with informational guides, and real estate, and mortgage professionals were also present for advice and support.

"How to Keep Spot Out of Your Pocketbook"
Investor's Business Daily (09/10/98) P. A1

According to the Insurance Information Institute of New York, about one-third of all homeowner insurance claims involve dog bites, costing insurers $250 million annually. Most homeowner insurance plans cover dog bites, but premiums soar and customer's are commonly dropped after a bite occurs. Some insurance companies are concerned about writing homeowners policies for dog owners and often reject applications of owners with certain breeds such as pitt bulls or Rottweilers. Owners can do some things to help avoid dog-related lawsuits including watching kids who play around the dog, posting "beware" signs, spaying or neutering the dog, and placing the dog in a kennel when the owner goes away.

"Florida Homeowners Get Premium Refunds"
Property & Casualty/Risk & Benefits Management (09/07/98) Vol. 21, No. 35; P. 2; Adams, Michael H.

The decision by the State Farm Insurance Company to offer a one-time, $12 million refund to Florida policyholders is something that homeowners in the state can feel good about. Moreover, State Farm will now provide full replacement on all items. A year ago, the insurer implemented a new policy to provide full replacement for items that were only less than one year old. "When the state's largest insurer takes a step like this, it means good things for Florida homeowners," said Florida Insurance Commissioner Bill Nelson. "I commend State Farm for doing its part to restore the marketplace and putting the interests of its policyholders first." As a result of the move by State Farm and other insurers, the majority of the policyholders in Florida will now get some relief in homeowners' insurance rates, according to Don Pride, the Florida insurance department's director of communications.

"Sweet Retreats"
Detroit Free Press (09/06/98) P. 1J; Wedlick, Dennis

Homeowners often decide to build outdoor decks and patios to make the outside of a home appear more livable and attractive. But too often homeowners neglect to make a clear transition between the home and the patio so that the house appears connected to the patio. The first thing homeowners must decide is whether to build a raised deck or a lower patio. The raised stone deck may appear more interesting, but it shouldn't be raised too high. Whatever the decision is, the deck or patio will be affected by the surrounding landscape. The patio should be situated comfortably within the trees and shrubs that surround the home. The elevation of the deck will also vary, and the steps leading away from the patio should be smaller and lower rather than tall.

"Harlem Park Group Offers Classes for Homebuyers"
Baltimore Sun (09/06/98) P. 5N

Mortgages will be the topic of discussion at the second Homebuyers Club meeting of Baltimore's Harlem Park Revitalization. For more information on the class that is scheduled to take place on Sept. 23, call 410-728-5086. On Oct. 7, another meeting will focus on shopping for a home and home inspection, and an Oct. 21 class will cover settlement and tips for new homeowners. Harlem Park Revitalization works with low-income households in search of affordable housing.

"Real Estate in the Internet Age"
Boston Globe (09/06/98) P. F1; Babson, Jennifer

The Internet has become a powerful resource for consumers in the market for a home or a mortgage, and many real estate companies along with mortgage lenders, are sponsoring their own Web pages. The Internet has allowed consumers to prepare themselves more thoroughly prior to meeting with agents, stated the Massachusetts Association of Realtors. For home buyers researching mortgages, sites such as iQualify.com and QuickenMortgage, at www.quickenmortgage.com, are strong sources. In addition, consumers can now conduct home searches themselves rather than first going through a real estate agent. However, consumers utilizing online resources must remember that information over the Internet isn't always protected. Home buyers are also encouraged to check the legitimacy of any online company they choose to work alongside. Other sites consumers should utilize for real estate or mortgage-related information include the Web site of the National Association of Realtors at www.Realtor.com, Microsoft's HomeAdvisor (www.homeadvisor.com), E-Loan (www.eloan.com), Homefair (www.homefair.com), and Fannie Mae's homepath.com.

"A Place to Call Home"
Crain's Cleveland Business (08/24/98) Vol. 19, No. 34; P. S-1

Twinsburg, Ohio, a small suburb located approximately halfway between Cleveland and Akron, has become a popular area in recent years for families looking for conveniences while avoiding the fast-paced lifestyles of big cities. A number of developments have attracted new residents of the city, including Ethan's Green, which features cluster homes, and Glenwood Acres, the city's oldest development. The town features a healthy mix of old and new housing and has the lowest property taxes of any city in Summit County. About half of its population arrived in the last 10 years.

"Homeowners Incentive Team Formed in Florida to Develop Comprehensive Storm Damage Mitigation Plans"
Insurance Advocate (08/22/98) Vol. 109, No. 33; P. 5

The Institute for Business & Home Safety and the Florida Department of Community Affairs are working together to develop a comprehensive public-private incentive program for disaster mitigation. The Homeowners Incentives Team program will be designed to make it more affordable for Floridians to build and retrofit homes and commercial facilities. Incentives will be sponsored by a range of industries and government entities, including banks, insurance companies, real estate agencies, building material makers, and energy firms. Homeowners Incentives Team is a subprogram of Florida's $21 million "Breaking the Cycle" disaster mitigation initiative. Breaking the Cycle is helping to fund retrofitting projects for policyholders of the Florida Windstorm Underwriting Association.

"Insurance: That's the Breaks?"
Money (08/98) Vol. 27, No. 8; P. 130

Homeowners can receive insurance discounts if they install a home-security system. A basic alarm system and dead bolts on exterior doors give customers a 7 percent credit, but the discount rises to 12 percent if the system alerts police, the fire department, or a private security firm. The savings on a typical $600 homeowners policy can be as much as $72. According to the National Burglar and Fire Alarm Association, the average security system costs $1,300 plus $25 a month for monitoring contracts.