Mortgage Rates Edge Upward In Late March

It had to happen. When combat with Iraq began in March interest rates rose, a not-surprising event given the uncertain nature of war.

But even with the March bump, mortgage interest rates remained unusually low. According to Freddie Mac, the bottom during the first quarter was 5.61 percent plus .6 points for 30-year fixed-rate financing. One result of the low rates: the Mortgage Bankers Association of America said loan applications reached record levels during the month.

Clean Houses Soothe The Psyche

"A clean house makes people feel happy, satisfied, comfortable and healthy" says The Soap and Detergent Association. SDA research shows that 78 percent of Americans plan on spring cleaning this year, up 11 percent from 2002.

"The urge we have to clean may be a trait that is biologically programmed into us," explains Carol Nemeroff, Ph.D., associate professor of psychology at Arizona State University. "And, because we know that good hygiene leads to good health, cleaning may ultimately be related to a basic survival instinct."

According to SDA's study, the leading characteristics of a clean house include:

• A clean, fresh smell (37 % of respondents)

• Knowing dirt and grime are gone (31%)

• A shiny, dust-free look (14%)

• Taking good care of furnishings (11%)

Tax Time Nears

April is the traditional time to unearth records, crank-up adding machines and do battle with endless streams of tax forms and publications.

If you're a harried taxpayer, the latest trends on the tax front look like this:

• Audits are down. Only .057 percent of all returns were audited in 2002 -- down from 1.67 percent in 1995. Among those with incomes of $100,000 or more, the audit rate was .50 percent in 2002, substantially lower than the 2.97 percent of all such returns checked in 1995.

• Collections are up. The IRS pulled in an additional $32.5 billion in 2002 as a result of notices and actions, up significantly from the $25.1 billion collected in 1995.

Homeownership, of course, remains one of the best available tax benefits for citizens. Mortgage interest and property taxes are generally deductible while you own a home, and sale profits of as much as $250,000 for single owners and $500,000 for married owners are often completely untaxed. For details and specifics, speak with an enrolled agent, CPA or tax attorney.

When to Cancel Mortgage Insurance Premiums

To reduce their risk, lenders stay away from mortgages with less than 20 percent down unless there is a financially-strong third-party in the picture, someone willing to pay off the debt if the borrower gets into trouble. In many cases, that "someone" is a private mortgage insurance (MI) company, firms which promise to repay lenders if loans go bad.

By using MI, borrowers can buy with 5 or 10 percent down and sometimes less. With less cash needed at closing, borrowers with MI can usually purchase sooner than borrowers who wait to acquire 20 percent down. No less important, by purchasing sooner buyers are often able to get a home for less money than if they delay buying while homes appreciate.

MI is insurance and so it follows that borrowers must pay insurance premiums. Such premiums, however, do not have to be paid for the entire loan term. Under the Homeowners Protection Act of 1998 (HPA), MI for private mortgages originated after July 29, 1999 can usually be canceled once the original loan balance has been reduced to 78 percent of the purchase price.

In some cases, however, lenders will allow homeowners to cancel coverage sooner, especially those with good payment histories and significant equity. For details, speak with your lender regarding their cancellation policy. Also, the Mortgage Insurance Companies of America (MICA) has a calculator and free "PrivateMI Cancellation kit" online at: http://www.privatemi.com/cancel/in dex.cfm.

Practical Mold Clean- Up

While mold has been with us for millions of years, the combination of certain molds and sensitive individuals can create health risks, everything from minor allergies to far more serious consequences for some people.

One problem with mold is that it's here and it's not going away. According to the Environmental Protection Agency, "it is impossible to get rid of all mold and mold spores indoors; some mold spores will be found floating through the air and in house dust."

A second problem with mold is that even a thorough cleaning is unlikely to entirely solve remove such spoors -- more must be done and in the case of mold "more" means getting rid of dampness and moisture.

"If there is mold growth in your home," says EPA, "you must clean up the mold and fix the water problem. If you clean up the mold, but don't fix the water problem, then, most likely, the mold problem will come back."

The good news is that you can do something about mold. The EPA's "A Brief Guide to Mold, Moisture, and Your Home" is free and useful. It offers a good description of what mold is, why it can be a health hazard, and some common-sense steps to take if you find indoor mold. Copies are available from your real estate broker or online at: http://www.epa.gov/iaq/molds/moldguide.html.

For more articles by Peter G. Miller, please press here.

Published: March 25, 2003

Use of this article without permission is a violation of federal copyright laws.