Despite spurts and starts in the economy, mortgage rates remain at low levels. In August, Freddie Mac reported that borrowers could find 30-year fixed rate loans at 6.22 percent plus 6/10ths of a point -- the lowest rate seen in 32 years. Meanwhile, the popular 11th District Cost of Fund Index, the index used by many adjustable-rate mortgages (ARMs), was at 2.847. That's not the low for the past 21 years (2.653 was seen in March), but it's not far off.

For those who wish to buy, the good numbers mean a given income should allow you to borrow more then in periods when rates are higher. And if you have a mortgage, consider some of the home loan offers now available to see if refinancing makes sense in your situation. A new loan might allow you to cut monthly costs, borrow more, or reduce pay-off periods.

Garages: Is Now The Time To Clean?

It used to be that basements and attics were the last refuge for household goods, but increasingly that role is being assigned to garages. The result: Many "garages" have become ground-level storage areas, places where parking a car is no longer possible.

Using a garage for storage is entirely common because it's a large, ground-level area with easy access. That said, there are good reasons to clean out garages, especially if you're considering a home sale.

One immediate benefit is that a garage may contain unsafe items. Garages are often the place where we put the stuff that otherwise goes nowhere else. Unfortunately, some of that stuff may be flammable, degrading, sharp, and dangerous. Such items require proper disposal.

Another reason to clean out a garage is to create more space. This adds to the impression of size, may allow cars to be parked indoors, and -- of course -- creates additional room should a need for future storage arise....

If you have items which other may want, consider the -- can we say it -- garage sale, an opportunity to convert the old, the odd and the used into actual cash.

Lastly, ask about charitable donations. There are community organizations that can use clothes, toys, tools, and furniture and what you give not only helps others but such contributions can be tax deductible. Before you give, check with a tax professional for details. For instance, do you need an inventory if your donation is more than $500?

Laptop Trends Change Home Offices

Having a home computer used to mean office space that included a big and bulky desktop unit on the floor. But while desktop units remain top sellers, more and more users are turning to laptop machines.

The change comes about because many laptops rarely move. Seeing this, manufacturers have begun to use desktop processors in laptops rather than more expensive devices designed for portable use. The result is a hybrid, something light and portable for the one or two times a year you compute away from home, a machine really designed for the nearest outlet rather than extended time on a battery, and a computer which costs more than a desktop but less than a traditional laptop.

But whether a laptop is the traditional variety or a hybrid, if you use such equipment at home be sure to get a security cable. More than 300,000 laptops are stolen each year, a crime which can often be prevented by attaching laptops to something big and bulky.

College Students And Homeowners Insurance

Homeowners insurance policies often cover far more than a home and its contents. If you have a child entering college he or she may well have personal property protection under your household policy.

Policy coverages differ, but in many cases homeowners automatically have personal property protection equal to 50 percent of the property's total value -- and some policies go as high as 70 or 75 percent.

A college student living in a dorm is often considered a "resident" within your household for insurance purposes. In the event of theft, a portion of your personal property coverage can apply to the student.

For instance, suppose you have a home insured for $200,000. Half that amount creates personal property protection worth $100,000. Ten percent of the all household personal property protection is equal to $10,000.

If your student has a loss, in this example there would be coverage worth $10,000 less any deductible.

For details, speak with your insurance agent. Ask what coverage applies and if coverage is in effect once a student moves from a dorm.

Published: August 27, 2002

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