"Starter Home Prices"
Wall Street Journal (09/25/98) P. W8

Miami has had one of the least expensive starter home markets in recent weeks. According to market researchers Claritas and First American RES, starter homes in a neighborhood of corporate ladder-climbing business professionals have been selling on average of $111,878 of late. Young business executives in Tampa have not been as fortunate. Starter homes in a comparable market have been found to be selling on average of $189,262. Atlanta has one of the least affordable first home markets in the Southeast; comparable homes there sell for an average of $253,215. Nationwide, Philadelphia has had one of the most affordable starter homes markets for business professionals, with prices on average as low as $108,686. On the other hand, young professional in New York are paying on average as much as $391,625 for their first homes.

"No Time Like Present to Refinance Mortgage"
USA Today (09/25/98) P. 3B; Hannon, Kerry

Mortgage rates fell again this week, making it a good time for some homeowners to refinance their current mortgages, according to Freddie Mac. Average rates on 30-year, fixed-rate mortgages fell to 6.64 percent this week, down from last week's 30-year low of 6.66 percent. In addition, 15-year mortgage rates fell to 6.32 percent, and one-year adjustable-mortgage rates fell to 5.42 percent. Rates could fall even further by the end of the year, according to David Lereah, chief economist of the Mortgage Bankers Association. Because of the rate declines, mortgage applications were up 94 percent last week from a year ago, and refinances accounted for 59 percent of all applications. The low rates are a strong incentive for homeowners to refinance, especially if they can lower their rates by more than 2 percent, but there are also additional factors to consider, such as loan fees, appraisals, and closing costs. When deciding if they should refinance, homeowners can contact their current lender or can use a mortgage calculator over the Internet to see how much money they could save. Normally, it won't make sense to refinance if the homeowner only plans to live in the home for a short time. When refinancing, borrowers should make sure they have their current mortgage information, an accurate credit report, and recent income statements.

"Florida Is Now Better Prepared Than in '92"
Journal of Commerce (09/24/98) P. 5A; Mullins, Ronald Gift

As Florida braces for Hurricane Georges' strike, insurers say that the state is better prepared than it was for Hurricane Andrew in 1992. Florida Insurance Council vice president Sam Miller notes that authorities have strengthened building codes and insurers have tried to raise policyholders' awareness of how to make their homes more secure. Since Andrew, Miller adds, Florida has instituted a catastrophe fund with a claims-paying capacity of $11 billion, and after a hurricane strikes, the fund will step in after insurers pay the first $3 billion. Insurance Information Institute vice president and economist Robert P. Hartwig says that insurers have become smarter about underwriting since Andrew and that they have a more balanced selection of risk.

"An Atrium for All Reasons"
Washington Post--Home (09/24/98) P. 26; Gelfeld, Elizabeth

Architects such as Washington-based Raj Barr-Kumar have customized a prefabricated atrium as an alternative to having a home built with a passive solar design in mind. Barr-Kumar raised the atrium at the back of his traditional brick-front colonial eight feet by putting sliding glass doors at the bottom. This was the more affordable option for using the sun to heat the home because he "already had a large chunk of the house built" and "the builders came and plopped it right into place," said Barr-Kumar. He explained that the street side is the north side, and he wanted to find a way to get some of the warm sun during the winter.

"NAR Lauds RE as Solid Investment"
National Mortgage News (09/14/98) Vol. 22, No. 51; P. 6

Despite a turbulent stock market, the housing industry remains a strong investment for homeowners and lenders, according to the National Association of Realtors. While other industries have been hurt by the stock market's volatility, homeowners continue to enjoy benefits, according to R. Layne Morrill, president of the NAR. One benefit has come as investors pour money into U.S. Treasury bills, which drives down interest rates. But in addition to being affordable, homeownership also yields many benefits, including value appreciation and income tax deductions. According to the 1998 "State of the Nation's Housing" report by the Harvard University Joint Center for Housing Studies, the rate of return on a home grows the longer it is owned. A homeowner who makes a 10 percent down payment and sees an appreciation rate of 5 percent will receive a 94 percent return in three years. This will increase greatly in the years following, according to the report.

"Regular Cleaning Can Extend Computer Life"
Crain's Detroit Business (09/14/98) Vol. 14, No. 37; P. E-10; Lee, Mie-Yun

For homeowners and Realtors who own computers, constant maintenance in the computer can prevent many future problems. Dust collection on any part of a computer can be damaging, and if ignored it can be costly to repair. The most important area to keep clean is the fan vent. It is also possible to clean inside the computer, but the computer owner must make sure they are comfortable with the machine before doing so. The monitor should also be dusted, but the owner should make sure their cleanser doesn't contain chemicals that could damage the screen. Keyboards can be cleaned by turning them over or by using a cotton swab. A dirty mouse can also cause problems and can be cleaned by removing the ball and getting rid of any lint. Computer should be cleaned every six months so they will remain in good working condition.

"Wish List"
Chicago Tribune (09/20/98) P. 16-9C; Glink, Ilyce

First-time homebuyers feeling pressured by the booming real estate market are advised to consider a number of factors before bidding on a home. First, create an ideal wish list composed of all the characteristics you would want in a home and its surrounding community. This activity will also help identify what you truly need from a property. Also consider how long you plan to stay in your next home and select a low-maintenance home if relocation may follow in only a few years. Be wary of properties that may be challenging to resell. Distinctive homes that are in poor condition or extremely good condition, or are positioned in an unfavorable location may be difficult to market later. Homeowners are advised to closely research the surrounding community and purchase in the best school district possible. Past research proves that homes in strong school districts appreciate faster than their counterparts in mediocre districts. Although transactions are evolving very quickly in today's market, it's most important to apply careful consideration to your decision.

"Tone It Down"
Chicago Tribune (09/18/98) P. 8-1; Sulski, Jim

Prospective homebuyer concerns about noisy neighbors has prompted more builders to soundproof their homes. "It's something people are getting more concerned about, especially if they're moving into a multifamily home where they know they might have neighbors above, below, and to the sides," says developer Larry DiVito, vice president of Chicago metropolitan area-based Wellington Partners. Builders are making use of better layouts, inside insulation, larger frames, deeper walls, seals, and furnishings to cut down on disturbances. In the case of floors and ceilings, builders say the installation of carpet on the second floor should solve the problem of hearing footsteps overhead. And for homeowners who want hardwood floors on the second floor, the resilient channel system is being used on downstairs ceilings in the same manner that they are being used on walls. In terms of the cost, the best time to have acoustical-related work done on a house is during construction or remodeling.

"Country Home is Within Reach, Even if Your Income is Modest"
Milwaukee Journal Sentinel (09/13/98) P. 2F

Homeowners considering a home in a rural community with a population below 20,000, may be qualified for a no-down-payment mortgage if their household income does not exceed 115 percent of the area median income. Other factors, including family size and population based upon proximity to an urban center, may also affect eligibility and the mortgage amount. Consumers participating in the program may also utilize gift funds and seller contributions to cover closing costs. For more information on the U.S. Agriculture Department's Guaranteed Rural Housing Loans program, contact a local lender.

"Home Office Limits"
Minneapolis Star Tribune (09/12/98) P. H1; Klott, Gary

Home office workers can use their work space for more than one business. However, in order to claim home office deductions, all of the work performed in the room must qualify for the tax break. For example, if the home office is also used to grade school papers, the homeowner won't be able to claim any home office deductions.

"Fuel Cell Will Supply All Power to a Test House"
Today's Buyer's Rep (09/98) Vol. 7, No. 9; P. 4

The U.S. Department of Energy is looking into the possibility of having homes make use of fuel cells as an energy base in the years to come. The department is currently funding the Plug Power program, which is an effort to find an alternative energy source for supplying all power to a home. With a fuel cell, homes will use less fuel, which will lower electrical costs by as much as 20 percent and reduce pollution. The two companies participating in the joint venture, DTE Energy in Michigan and Mechanical Technology Inc. are running fuel cell tests on a home in suburban New York. Plug Power hopes to commercialize the use of fuel cells in residential homes by the year 2000.

Published: September 25, 1998

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