Real estate sept 2017

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Thursday Sept. 28, 2017

THE EASTERN NEW MEXICO NEWS

Prevent falls this fall with a home safety checklist

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fter months of sticky heat and humidity, it’s time to put away the shorts and pull out the sweaters because the autumn season is finally here. But, late September brings us more than just cooler temperatures and a wardrobe change.

If you or a loved one are over the age of 65, the change in seasons is also an opportunity to think about another kind of fall – the kind that impacts one in four older Americans every year – and the steps we can all take to help prevent them.

According to the National Council on Aging, falls are the leading cause of fatal injury and account for the majority of emergency room visits for older adults. More than 75 percent of falls happen in or around the house, but fortunately there are ways to evaluate our loved ones’ homes and make them safer for everyday living.

Use the checklist below, based on suggestions from the Consumer Product Safety Commission and the Centers for Disease Control and Prevention, to help guide your review of the exterior and interior of the property. Many of the safety measures listed can be made at little to no cost, but more significant modifications could require a considerable investment.

Keep in mind, there are financial options available for seniors who want to modify their homes to meet their changing needs. Area Agencies on Aging, state and local governments, and some nonprofits offer grants, loans or other assistance programs for eligible seniors in need of home repairs and modifications.

Older homeowners may also want to consider using a reverse mortgage loan to convert a portion of their home’s equity into cash proceeds that can be used for many reasons, including home modifications and maintenance. Unlike a home equity loan, a reverse mortgage requires no monthly principal or interest payments and cannot be frozen or reset.

Home Safety Checklist Start on the outside: · Make sure the driveway and any paved walkways are smooth and stable. Seal any cracks before more damage is created. Crumbling or uneven concrete surfaces should be repaired. · Porch and deck flooring should be flat, even and nonslip.

Any loose or broken floorboards should be nailed down or replaced. · Outdoor steps should have sturdy, easily graspable handrails. · The porch and entryway should be well-lit and light switches should be easily accessible. · Consider whether the doorway to the home can be converted to a no-step entrance way. There are many creative ways to achieve this.

Check out the inside: · Floors should be flat and nonslip; floorboards should be stable and carpets should be free of holes and tears that could create a tripping hazard. · Throw rugs should be fully fastened to the floor with tacks or double-sided tape, or taken out of the house.

Borrowers do not have to repay the loan balance until the last eligible spouse permanently leaves the home, or if they fail to meet their loan obligations, which include staying current on property taxes, insurance and any condominium or HOA fees.

· All stairs and steps should be flat and even, and clutter should be removed.

For a comprehensive overview of reverse mortgage loans and a Borrower Roadmap to the loan process, visit http://www. reversemortgage.org/Your-Roadmap, a free consumer resource created by the National Reverse Mortgage Lenders Association.

· Stairways should have solidly mounted handrails on both sides of the steps if possible, and should be well-lit.

· Add nonslip treads to stairs that are not carpeted.

· If you or your loved ones face mobility challenges and stairs are an obstacle to accessing different levels of the home, consider installing a chairlift that will enable them to enjoy all the rooms in the house again.

Replacing a furnace? How to choose an energy-efficient system

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f it’s time to replace your furnace, you may be wondering if it’s worth the extra investment to buy an energy-efficient system. Or, you may be unsure how to choose an energyefficient system for your home.

“Energy-efficient heating systems can substantially lower your fuel costs over the lifetime of the system, so it’s well worth investing the time and money to find just the right one,” says Chip Wade, HGTV(R) expert. “Depending on where you live, an energy-efficient gas furnace can be between 12 and 16 percent more efficient than standard models, according to ENERGY STAR.”

Wade offers some guidance for choosing an energy-efficient heating system that’s right for your home: · The Annual Fuel Utilization Efficiency (AFUE) measures how efficiently a gas furnace converts fuel into energy.

Generally, the higher the AFUE rating of a furnace the more energy efficient it will be. For example, a furnace with an AFUE rating of 90 percent means that same percentage of fuel gets turned into heat, and only 10 percent is lost through the chimney and elsewhere. You can find the AFUE rating on the yellow Energy Guide label on the furnace. · Be sure to right-size your furnace. A unit that’s too small for your home will have to work harder to maintain a comfortable temperature, and will use more fuel. A unit that’s too big may also use more fuel than is actually required to adequately heat your home, and may also result in uneven temperatures throughout the house.

· Look for models like the the YORK(R) Affinity(TM) Series modulating gas furnace that offer efficiency-enhancing features. For example, the Affinity furnaces have a modulating burner that continuously adjusts heating levels in small increments to match the precise degree of comfort you need. Leading-edge technology also tailors the operation of the furnace to match the climate of your location. The system also self-monitors to make set-up and maintenance faster and easier.

· Choose a gas furnace that offers sealed combustion. These furnaces draw air from outside and mix it with the fuel at a controlled rate. This maximizes the amount of heat the furnace can generate from the fuel. Most quality energyefficient furnaces will have this feature. · Pay attention to the warranty and be sure you understand just what it covers and for how long. Furnaces are a big investment, so it’s important to choose one that gives you the best warranty. For example, Affinity furnaces offer a Complete Assurance Warranty Pledge that promises if the heat exchanger fails in the first 10 years, the company will provide the option to replace the furnace.

Finally, before you invest in an energy-efficient furnace make sure your house will work with the furnace to maximize its efficiency. Seal air leaks throughout the home, especially at windows and doors, and throughout duct work. Make sure you have the correct amount and type of insulation in your home for your climate. Have the rest of your home’s HVAC system inspected to ensure there are no problems that could hinder the efficient operation of your new furnace.

To learn more about energy-efficient furnaces, visit www.

YORK.com.

Page 2C • Thursday, Sept. 28, 2017

Real Estate

THE EASTERN NEW MEXICO NEWS

All home warranties aren’t created equal

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aving a home warranty is a smart way to help deal with the inevitable home repair problems that all property owners face at one point or another.

After all, a good home warranty can mean getting expert help when your HVAC system needs to be fixed, your water heater needs to be replaced, or your refrigerator requires a new part.

But unfortunately, all home warranties are not created equal. And shopping for a home warranty can be tough, especially if you aren’t familiar with home warranty coverage and providers.

So to find a home warranty that will protect your home and budget, here are three important questions to ask, along with a few tips on what to look for in a top-notch home warranty.

1. What’s covered?

Some home warranties are only good for appliances.

Others focus on systems within your house, such as your air conditioning, heating or plumbing systems. The best warranties offer broad protection at a fair price, and even allow you to select from various coverage approaches based on your needs.

When shopping around, inquire about exclusions, limitations and non-covered expenses. Most, if not all, plans DO have these. For example, there may be a cap on the amount of coverage for a particular item; an environmental disposal fee, required in some counties, may be excluded from coverage; or modifications, not covered under the home warranty, may be needed to bring a covered system up to code or in compliance with new standards.

2. Is the price affordable?

Obviously, you’ll want to initially know the specifics of how much a warranty will cost you - not just for the annual price of coverage, but also for future service calls.

When purchasing an American Home Shield warranty, you choose a $75, $100 or $125 fee for your service requests, which gives you the flexibility to pay more or less for your an-

nual contract. As with all home warranty companies, the price of an American Home Shield warranty plan varies based on multiple factors, including the specific type of plan you choose and your state of residency. But basic coverage starts at about $300 and goes up to around $600 annually for more comprehensive plans – a bargain considering the cost of replacing things in your house that will likely break down at some point.

When considering cost factors, also ask if all the items you want covered are included in the base cost of the plan, or whether you will need to add additional items to create the perfect plan for your home.

3. Does the home warranty cover just mechanical components?

Before you buy any home warranty, inquire about the extent of coverage different companies may provide based on normal wear and tear of an item – as well as any limitations.

Many components of home systems and appliances contain both mechanical and non-mechanical features. While the primary goal of a home warranty is to repair or replace covered items so that they function mechanically, American Home Shield covers both mechanical repairs and certain non-mechanical items, such as handles, doors, knobs and shelves.

That doesn’t mean everything is covered, of course. So let’s say your child stands on your dishwasher door and breaks the seal. Sorry, but that is NOT a covered repair, because it is not “normal” wear and tear.

Also, what happens if a repair person comes to your home and, despite his or her best efforts, simply can’t fix something covered under your home warranty?

With an AHS home warranty, if a repair person can’t fix a covered item, AHS will replace it.

That doesn’t mean you will necessarily get the precise brand and color of, say, a washing machine or dryer. After all, you may have bought your laundry set four years ago, and the manufacturer might not even make those exact same models or colors today.

However, if your washer and dryer do fizzle out completely, AHS will install a replacement that has similar operational features.

What’s more, at American Home Shield, 98 percent of service requests are dispatched to local repair technicians within 24 hours.

Using your home warranty wisely

Regardless of the type of home warranty you buy or whom you buy it from, always follow the maintenance guidelines specified for your home’s appliances and systems. Likewise, it’s a smart idea to have those systems and appliances regularly serviced.

Taking both of those steps can prevent many service repair calls and help reduce your overall cost of homeownership.

Ultimately, an excellent home warranty provides you with a solid asset that helps safeguard one of your biggest investments.

THE EASTERN NEW MEXICO NEWS

Real Estate

Thursday, Sept. 28, 2017 • Page 3C

House hunting and credit: What you need to know

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y now it is something of a cliche to call homeownership the American dream. But even if sitting on your own deck, looking over your picket fence and sipping lemonade doesn’t move you, homeownership is still one of the best ways to build wealth.

For many, owning a home is cheaper than renting and, in the long run, the biggest investment they will ever make. It is also a practical financial move thanks to the fact that you’re likely building equity while getting a mortgage interest tax break.

So although it is perfectly fine to dream about backyard barbecues and the smell of fresh-cut grass, the path to owning your own home should also involve taking the time to do some financial sightseeing.

As a leader in creating credit scoring models, VantageScore Solutions has made it a priority to educate consumers on the important role a good credit history plays in buying a home.

Whether you’re about to set out to buy your first home or if you are getting ready to sell and buy another home, here are the basics of how credit impacts the home-buying process.

Basics

If you are like most people, you will probably need to take out a loan. If you are able to pay cash for your home instead, count yourself among the lucky few!

A huge part of taking out a loan involves your credit history and credit score. Basically, you must prove to lenders that you can be a responsible borrower and can be trusted with a mortgage of many thousands of dollars. A strong credit score may provide proof of this trustworthiness.

Different types of loans have different credit requirements. Some loans require you to have a credit score of at least 620, although it is possible (with some difficulty) to be approved for a loan with a credit score as low as 580. But getting loan approval is only part of the story.

Better credit, better rate

Home loans come in all shapes and sizes. Some are fixed interest mortgages, some have adjustable rates or longer terms and the list of variables goes on. Just like anything else, some

loans are better for you than others. To get the loan that has the lowest interest rate, which right now is around 4 percent, usually requires a higher credit score. Rates can be considerably higher when you have a lower credit score, and the result is paying significantly more monthly over the life of the loan.

The reason is that a higher credit score demonstrates that you are skilled at managing debt and have a history of responsibly paying back many types of loans. Therefore, the lender is taking on less risk when lending you money. The less risk for them, the better the interest rate for you.

While there are, of course, more nuances to the process, your credit score plays an instrumental role in determining the type of loan you may qualify for. Therefore, before you go to your first open house, check your credit score to better understand the factors that typically impact your scores. Many websites provide free access to your VantageScore, which is a perfectly fine barometer to use to directionally gauge your creditworthiness. Mortgage lenders use FICO scores in their underwriting.

You can stay on top of things by subscribing to the monthly credit scoring newsletter, The Score. In The Score, you can find information on VantageScore 4.0, the fourth-generation scoring model that will be available to consumers in early 2018.

Knowing your credit history and understanding the factors that could impact your credit score will help you plan, budget and come up with a realistic wish list for your house.

Page 4C • Thursday, Sept. 28, 2017

Real Estate

THE EASTERN NEW MEXICO NEWS

Hot home design: 4 things to consider when choosing siding

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electing new siding is one of the most important curb appeal decisions homeowners face when building new or remodeling an existing home. With so many options – both classic and modern materials – there’s a lot to consider.

Many manufacturers are now combining traditional styles and materials with advanced technologies, delivering a product homeowners can love for years to come. Among all the options on the market, vinyl siding – with its various styles, textures and colors – remains the most-used product. In fact, 2016 marked 22 straight years that vinyl siding held the top spot in cladding for new single-family houses, according to the U.S. Census Bureau’s annual home report. This material has come a long way since it was introduced in the 1950s, with manufacturers such as Ply Gem Building Products making strides in research and development efforts for design and performance.

Whether you are building a new home or remodeling, there are four key considerations every homeowner should account for when determining which siding option will best meet his or her needs: durability, design, maintenance and affordability.

curb appeal, or for a specific panel texture, such as cedar shake or wood clapboard, my recommendation is to look at vinyl. It provides the homeowner the freedom to add low-maintenance color and definition that will never go out of style or need painting or refinishing.”

In fact, more than 400 vinyl siding colors have been certified for color retention, according to the Vinyl Siding Institute (VSI). The variety offers homeowners a virtually endless palette of fade-resistant colors, from pastels to deep hues, combined with trim, accents and accessories. Look to manufacturers like Ply Gem that offer complementary solutions for the entire exterior.

Maintenance

Beyond style and color, homeowners are also seeking siding that is low maintenance, which reduces or eliminates the cost and personal time expended for proper upkeep. Each siding material type has a different level of care and maintenance required. Vinyl typically requires just soap and water for periodic cleaning, and no need to paint, stain or caulk, which means little maintenance over the long term. Wood and fiber cement can require repainting every five to seven years. Stucco will need to be repainted and sealed. Brick and stone require

The variety of vinyl siding offers homeowners a virtually endless palette of low-maintenance, fade-resistant colors, from pastels to deep hues, combined with trim, accents and accessories.

Durability

Siding selection is typically a once-in-a-lifetime decision, making durability a key factor for many. Homeowners should look for a siding option that is resistant to every element, including rain, wind and even the sun. Manufacturers now offer siding products with technologies that resist the damaging impact of the sun, preserving color for the lifetime of the home. Options, like Ply Gem’s Mastic Vinyl Siding SolarDefense Reflective Technology, expand exterior home design with darker, on-trend colors that can make your home the envy of the neighborhood.

Design & color

Today, the most overwhelming decision for many when considering siding options can be style and color – but it doesn’t need to be. There are several primary siding material options available to homeowners – vinyl, aluminum, steel, wood, brick, fiber cement, stucco and stone - and countless color and style options within each material type. To help you determine what might look best, seek the advice of a siding specialist like a contractor, builder or architect for help. They can educate you on color coordination and what would go well with the neighborhood, while still giving personalized options for your home. Also check out online resources like Ply Gem’s home exterior visualizer to experiment with different options and customize your style.

“In recent years, homeowners have been getting more creative and choosing bolder colorful options for their exterior,” said Pat Verlodt, president of Color Services & Associates, an organization that identifies color trends and educates consumers and manufacturers about those trends. “Whether you’re looking for a certain period-specific color scheme to align with historical significance, for a new palette to freshen up your

repointing of mortar. The earlier point about durability plays a part here too, ensuring that the option you select is free from potential time-consuming and costly repairs due to storm damage such as wind and moisture.

Affordability

Lastly, establish a financial plan and budget. By doing this homework up front, you can have a more informed consultation with potential contractors and better ensure that estimates are aligned with your budget. Don’t forget that sometimes investing a little more into the project up front may reduce issues and maintenance costs down the road.

As you look to select new exterior siding, be sure to keep in mind these important factors – durability, design, maintenance and affordability – to make the best choice possible for your home and lifestyle. To get started on siding your house, look to manufacturer websites such as plygem.com for siding choices, as well as home visualizer and color selection tools that help homeowners experiment with different colors and textures before making a decision.

Vinyl siding is resistant to rain, wind and even sun. Manufacturers such as Ply Gem offer vinyl products in dark, on-trend colors with technologies that resist the sun’s impact, preserving color for the lifetime of the home.

THE EASTERN NEW MEXICO NEWS

Real Estate

Thursday, Sept. 28, 2017 • Page 5C

How to lower your monthly mortgage payment

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wning your own home comes with many advantages, including escaping rising rents and the personal and financial stability associated with homeownership.

Fortunately, millions of Americans, with less than 20 percent down, have been able to buy a home sooner thanks to mortgage insurance (MI). If you don’t put down 20 percent of the mortgage cost, you will likely be required to purchase MI, which enables low-down-payment borrowers to qualify for home financing from lenders.

While homeownership has many benefits and continues to be part of the American Dream, it is not without costs.

Several surveys have found that the majority of first-time homebuyers – over 80 percent according to one study – put less than 20 percent down. For these borrowers, there is usually the added expense of MI, which may give some of these borrowers pause.

over the life of the loan – until you pay off the entirety of the loan.

But there is good news: the monthly private mortgage insurance premiums do not last forever on most conventional loans. And when private MI (PMI) cancels, homeowners will have more cash in their pockets each month – money that is available for home improvements or other goals. It is important to understand, however, that not all MI is the same, and not all MI can be canceled.

If you obtain a conventional loan with PMI, you can put as little as 3 percent down. Like an FHA loan, PMI fees are generally factored into your monthly mortgage payment.

However, PMI can often be canceled once you have established 20 percent equity in the home and/or the principal balance of the mortgage is scheduled to reach 78 percent of the home’s original value.

There are numerous low-down-payment mortgage options available that include MI. The two most common are: (1) home loans backed 100 percent by the government through the Federal Housing Administration (FHA) that include both an upfront and annual mortgage insurance premium (MIP); and (2) conventional loans, which are typically backed at least in part by private sources of capital, such as private MI. The key difference is that one form can be canceled (PMI) while the other (FHA) typically cannot be canceled.

This means that the rest of your mortgage payments will not include any extra fees, so that your payments go down in time, saving you money each month. What you save in the long run can then be put toward expenses like home renovations, which can further increase your home’s value.

An FHA loan can be obtained with a down payment as low as 3.5 percent. However, be aware that you will typically have to pay a mortgage insurance premium (MIP) of 1.75 percent of the total loan amount at closing or have it financed into the mortgage. In addition to your regular monthly mortgage payments on your FHA loan, you will also pay a fixed monthly MIP fee for the life of the loan. This means you could pay hundreds of dollars extra every month – thousands

MI is a good thing because it bridges the divide between a low down payment and mortgage approval. But not all MI is created equal. If you want to buy a home but still save in the long run, PMI might be the right option for you.

Check out lowdownpaymentfacts.org to learn more.

Page 6C • Thursday, Sept. 28, 2017

3 considerations when choosing a garage door

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f you’re buying a garage door this fall, you’ll be faced with several decisions that you likely never had to make before. Before you call your local garage door dealer to make that purchase, here are some of the new decisions that you need to face.

The design decision

Remember the old adage that the front door is the most important design element in the home? It’s not true anymore.

In most homes today, the visual impact of the garage door is many times greater than that of the front door. Studies have even proven that your garage door design can affect the appraisal value of your home.

Today, manufacturers offer hundreds of new, unique and stunning looks. Design experts recommend that you choose a door design that blends in well with your home design, complementing its overall appearance. To do that, match the door with your home’s exterior colors, textures and patterns.

To help you with your design decision, the garage door industry has created the free consumer site www.garagewownow.com, which contains dozens of photos of the latest garage doors from many manufacturers. Plus, most manufacturer websites now feature a “door designer” that lets you see how different designs will look on an uploaded photo of your own garage.

New opener decisions

The garage door and the opener are two separate items, but they are often purchased together. And since today’s openers offer many more features and accessories than ever before, you’ll have several new decisions to make.

AC vs. DC: Openers with DC (direct current) motors, which were rare 10 years ago, are now widely available. DC and AC motors are both durable and reliable, but DC motors are quieter, and they allow the door to soft-start and soft-stop, instead of clanging to an abrupt stop.

Accessories: Here, the decisions are many. For example, you can now operate and monitor your garage door from your smartphone. You can also get a battery backup unit, a real lifesaver in a power outage. When you consider motion detection, music speakers, mini transmitters, automatic deadbolt locks, LED lighting, external keypads and more, you’ll realize how far openers have come.

New thinking on insulation

Insulation isn’t a new decision, but there is new thinking to consider. “The garage acts as a ‘buffer zone,’ much like the vestibule to a restaurant or a grocery store,” says Joe Hetzel, P.E., technical director for the garage door manufacturers’ association.

“An insulated garage door makes it easier to control the heating and cooling costs for the home.”

This new “buffer zone” thinking considers garage door insulation as a must.

Fortunately, insulation typically pays for itself. Dow Chemical recently reported that, for every $100 you invest in an insulation project, you generally get a return of $117 in recouped energy costs.

Real Estate

THE EASTERN NEW MEXICO NEWS