Published: December 11, 1998

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"Bigger Loans, New Down Payment Terms Mark Revised FHA Program"
Washington Post--Homes (12/11/98) P. 1; Miller, Peter G.

In addition to the larger loan limit of $197,621 on FHA loans in high cost areas, the revised FHA program will now calculate the maximum downpayment on its loans in a different manner. Starting Dec. 21, prospective homeowners will be able to calculate the maximum FHA down payment amount by multiplying a given number by the lowest figure involving the sale price of the home and the appraised value. In one case scenario, when both the sales price and appraised value are $50,000 or more in high closing cost states, prospective homebuyers are to multiply the lower of the two numbers by 97.75 percent. For example, a borrower that has $5,000 in closing costs and is buying a $170,000 home would have a minimum down payment of $8,825. Prospective homebuyers would do well to contact real estate brokers and lenders for more information on figuring out such cash requirements.

"HUD Reverse Mortgages at Bank in Connecticut"
American Banker (12/11/98) P. 7; Brockman, Joshua

Webster Bank in Waterbury, Conn., has announced plans to begin offering older borrowers a reverse mortgage program sponsored by the Department of Housing and Urban Affairs. According to bank officials, reverse mortgages enable home owners over the age of 62, to convert home equity into a monthly income, a single payment, or a line of credit. Under these loans, the balance is not due until the borrower no longer occupies the home as a result of death or relocation. Recording $9.2 billion in assets, Webster is the second-largest mortgage lender in the state of Connecticut.

"Sunny Sales in L.A."
Wall Street Journal (12/11/98) P. W12

Residential real estate sales of multimillion-dollar properties in Los Angeles have grown significantly since just last year. According to Cecelia Waeschle of the Beverly Hills office of Coldwell Banker, six luxury home sales in the area have already exceeded $10 million in price, while only two properties reached such levels in 1997. One of these properties included a home owned by former presidential advisor, Henry Salvatori, which sold for $18 million. So far this year, there have been a recorded 41 sales that exceeded $5 million, compared to just 33 last year. To date, there have been 183 home sales featuring prices between $2.5 million and $5 million, compared to 138 such sales in 1997.

"Sellers Lose if They Put Prices Too High at Outset"
Washington Times-Home Guide (12/11/98) P. F2; M. Anthony Carr

In today's market, home sellers who deliberately inflate the list price of their property are more likely to lose potential buyers and forfeit possible earnings as a result, warns real estate columnist M. Anthony Carr. Typically, sellers who choose to overprice their home do so for negotiating purposes. However, under today's market conditions, these properties are largely overlooked because of their high list prices. Realtors searching through computerized Multiple Listing Services, do not compensate for these overpriced properties and instead look only for homes in a specific price range. For these reasons, overpriced homes are less likely to get shown to potential buyers and as a result, may remain on the market for an extended period of time. This may worsen the situation as the home becomes classified as "worn." Most properties that have been on the market for a long period typically sell for less than market price. Sellers are advised to price their property as close as possible to the last sale in the local neighborhood.

"Most Mortgage Rates Fall"
New York Times (12/11/98) P. C8

Freddie Mac reports that the average interest rate on 30-year fixed-rate mortgages dipped to a nine-week low of 6.69 percent this week. This marked the fourth consecutive weekly decline. Freddie Mac further reported that 15-year mortgages averaged 6.34 percent this week, down from 6.47 percent the previous week, while one-year adjustable-rate mortgages rose slightly to 5.53 percent.

"Hartford Turns to Juno to Quote Over Internet"
Journal of Commerce (12/11/98) P. 9A

Hartford Financial Services has inked a five-year deal with Juno Online Services that will enable Internet users to receive price quotes and other data on automobile and homeowners insurance. Beginning this week, Juno subscribers will receive offers for The Hartford's personal lines coverages. In addition, they will be able to submit online applications and receive quotes electronically.

"$80M Securitization by Pennsylvania Lender"
American Banker (12/11/98) P. 7/1

American Business Financial Services Inc. earlier this week closed an $80 million securitization of business and consumer residential mortgage loans. The deal was completed through the firm's three primary subsidiaries: American Business Credit Inc., New Jersey Mortgage and Investment Corp., and Upland Mortgage. American Business Financial Services is a leading provider of investment products and credit services to both consumers and businesses.

"When Design Hinges on a Clean Line"
Washington Post--Home (12/10/98) P. 22; Gelfeld, Elizabeth

Washington, D.C.-based architect Larysa Kurylas insists that seamless transitions and clean lines can make the all the difference in the world between elegant spaces that are appealing to the eye and awkward ones that stand out and mar a home's overall appearance. One of Kurylas' recent projects was a glassed-in porch, in which she included a "ventilating door" in several places. Such doors are essentially narrow glass panels that open inward and slip into a pocket in the perpendicular wall. As a result, Kurylas points out, "They're never in the way."

"Readying Roofs for Stormy Times"
Washington Post--Home (12/10/98) P. 23; McClintock, Mike

Making use of extra felt paper is one of the better ways for homeowners to prepare their roofs for winter precipitation. Felt paper is considered to be the last line of defense and does a good job carrying away the water, according to Mike McClintock of the Washington Post. It also helps keep slivers of wood from puncturing shingles and helps smooth out the roof deck. Most roofers install sheets with a small overlap. Because the material is so inexpensive and easy to work with, it may be a good idea to use double coverage, with half of each sheet covered by the next sheet in line.

"Century, Caribe Homes Team Up on West Dade Project"
Miami Herald (12/10/98) P. 3C

After paying $8.9 million for 280 acres in West Dade in November, Century Partners Group and Caribe Homes are ready to build on the Southwest 136th Street and 137th Avenue site. The two developers have formed a joint venture to build Venezia Lakes, which would consist of 566 single-family homes and townhomes ranging in price from $99,900 to $186,000. Century Partners and Caribe, which are two of the top homebuilders in Miami-Dade, plan to break ground on the project in February, projecting that buyers will be able to move in by next summer.

"Learn About Real Estate Careers"
Rochester Democrat and Chronicle (11/28/98) P. 2F

There will be several opportunities in the coming weeks for people in the Rochester, N.Y., area to learn the ins and outs of the real estate industry. Century 21 Home Spirit, for example, is sponsoring a free real estate career seminar on Dec. 15 for those who are interested. Reservations are required. Locally, Century 21 Capital Realty and Andy Kane Realty/Allstate Rentals have already offered similar programs. M&T Mortgage Corp., meanwhile, is in the midst of sponsoring four home-buying seminars that will show consumers how to buy a house with just 1 percent cash down. Future dates include Jan. 12 and Jan. 19.

"High LTVs Can Jeopardize Financing on Next Mortgage"
Arizona Realtor Digest (11/98) Vol. 20, No. 11; P. 5

Borrowers of high loan-to-value mortgages may be in trouble when they attempt to refinance their mortgage or sell their home. Loans are usually due when the home is sold, and borrowers with mortgages worth more than the value of their home may not have enough money to pay off the mortgage.

"Checking Out the Tools"
Today's Homeowner Online (11/98) ; Wolfson, Caeli

For homeowners undertaking do-it-yourself projects, obtaining the necessary power tools to complete a repair job is only half the battle. But in Missoula, Montana local do-it-yourselfers now have an alternative to purchasing extra tools for a single job. The North Missoula Tool Library offers more than 170 different power and hand tools to library members (annual fee of $5) and other individuals willing to volunteer time. Sponsored by the Missoula Urban Demonstration Project and Habitat for Humanity, the tool library allows borrowers to "check out" power equipment for as long as five days, and offers workshops on tool use and a number of home improvement skills, including instruction on how the hang drywall.

"Composing the Exterior of a House"
Fine Homebuilding (11/98) No. 119; P. 40; Susanka, Sarah

Around the 1940s, one of the design patterns of many homes changed. Because homes built 50 years ago were often placed close to each other, the sides and the rear of the home were rarely seen, so developers decided to lessen their attention to the details of the sides of a house. This caused a two-dimensional view of the house, with virtually no placement patterns on the sides of homes. But today, with lot sizes increasing, homes are placed farther apart and therefore the sides are more visible; and home builders are starting to reconsider their attitudes about the design of the sides of homes. Home buyers must also keep this in mind, making sure the sides of their homes are integrated into the front of the home. This will make the home more appealing to future buyers. One key component in designing the side of the home is the placement of windows. If the windows are aligned correctly, they will allow more sunlight to enter the home, even if the home is more accessible to neighbors.

"Setting Up a Network at Home"
Nation's Business (12/98) Vol. 86, No. 12; P. 53

Almost 20 million homes have two or more personal computers, but few of them also have separate printers, modems, and other necessities, according to Intel. This is because many homes utilize technology that creates networking among different computers. One example is Ethernet, which link PCs and their operations through network cards. Software available from Microsoft and Novell can also allow one computer to act as the server for all other computers and their components. Computers can also be networked over electrical or phone lines, and while the speed of connection will vary depending on the system of transfer it is often faster than a typical modem. Wireless communication is also an option that can accompany multiple users.

"First-Timers Help Fuel Homeownership Growth"
Realtor Magazine (12/98) Vol. 31, No. 12; P. 20

Housing industry observers have seen first-time homebuyers become more active in the market in the 1990s. According to the Residential Home Finance Survey, 40 percent of all homebuyers in the 1990s have been first-time buyers. In comparison, in the 1980s first-time buyers accounted for just 31 percent of all homebuyers, according to the National Association of Realtors survey. Since 1996, the participation of first-time homebuyers has been on the rise. In 1996, first-time buyers accounted for 39 percent of homebuyers, and in 1997 first-time homebuyers accounted for 41 percent of homebuyers. In the spring of 1998, first-time homebuyers accounted for 47 percent of all homebuyers.