February 7, 2012
Categories: Uncategorized . . Author: reallivingmorganrealtygroup . Comments: 1 Comment
Merry Christmas – Happy Chanukah – Happy Kwanza
In this most magical of seasons, may you and your family find peace, love and much happiness!
From your friends at Real Living Morgan Realty Group,
Alex, Brandon, Carol, Denny, Diana, Jeff, Pat and Paul
Closing Costs – No Need To Be Surprised
Many homebuyers mistakenly arrive at closing without knowledge of closing costs: major and minor fees that are a routine part of any home purchase. This can be because the lender increased fees on lender-controlled aspects of a transaction, or because a buyer chose a third party (appraiser, inspector, attorney, title company) that might charge higher prices than those estimated by the lender.
Fortunately, new rules and regulations provide more clarity on the closing costs that borrowers can expect to pay. As a rule of thumb, homebuyers can expect to pay closing costs equivalent to 3 percent to 5 percent of their loan amount. This is money that the homebuyers will spend in addition to their down payment, and those stretching to buy should know that they’ll need to cover these closing costs in addition to the savings reserves that some lenders require. (In other words, raiding your savings on closing day to pay unforeseen closing costs may not work out!)
Ask the seller to pay the closing costs
before you make an offer on a home, discuss with your agent whether you can negotiate with the seller to pay some or all of your closing costs. Many buyers who are stretching to finance a down payment make an offer that’s slightly higher and ask that, in exchange, the seller pay some or all of the closing costs. (Essentially, this amounts to financing closing costs within the mortgage loan.) Sellers eager to complete a transaction may offer to pay some closing costs in order to expedite a deal, or price their home slightly high on the assumption that they’ll be helping a buyer with closing.
Understand the Good Faith Estimate
Make sure you get — and carefully review — the Good Faith Estimate that your lender must provide within three days of your loan application. This paperwork will describe to you the closing costs associated with your loan, ranging from lender-related fees (such as loan origination fees) to outsiders’ fees required to complete your transaction (inspection, appraisal, etc.). A good faith estimate is just that — an “estimate” — and some closing costs cited in that estimate can change. But as of January 2010, the government made it illegal for some of those costs to rise and capped other cost increases at no higher than 10 percent.
Closing costs that cannot increase include points (once an interest rate is locked), loan origination fees and transfer taxes. The costs that can increase, but by no more than 10 percent, include any services required by a lender, title-related services, and government recording charges. Other closing costs that can change include services that the buyer selects, such as extra home inspections, title services not required by the lender, homeowner’s insurance, and escrow deposits.
Get more than one Good Faith Estimate
Because lenders all use the same form to provide customers with the closing cost numbers, it’s possible to compare the estimates of various lenders, and to negotiate with them on some fees.
Read your HUD-1 Settlement Statement closely
Ask that your lender to provide the HUD-1 Settlement Statement well before closing, so you can comparing the closing costs listed in the statement with your Good Faith Estimate. You should feel free to ask your lender about any discrepancies or price adjustments you notice, so that you’re prepared and well-equipped to close with confidence.
You do have recourse after the loan closes if you find out you’ve been overcharged.
DOCUMENTS AND FEES YOU SHOULD EXPECT AT CLOSING
Documents
- Bank note: If you’re closing on a house or condo it’s called a mortgage. The mortgage “puts teeth into the note.” A note is a piece of paper that says I borrowed the money and I will promise to pay it back. The mortgage says what the bank will do if you don’t pay it back.
- Transfer documents: For a condo, the unit condo power of attorney gives the condominium limited power of attorney to conduct the business of the condo. A house does not have a transfer document
- Hud-1: Discloses fees and costs.
- Lead paint disclosure: The seller, buyer and usually the agent all sign. Most people waive their right to do a lead paint inspection.
Fees
- Attorney’s fees: Fees attendant to the loan, including the bank attorney’s fees.
- Transfer agent fee: If the co-op has
- Title charges: (for a condo or house) pays for the title report ordered by the lawyer. It’s a onetime insurance premium you’re paying for the title. It’s a research of the property to find any and all encumbrances. The seller has to secure all the claims against a property to close. The title company is ensuring that the buyer has a good, clean, marketable title to that home or condo.Many homebuyers mistakenly arrive at closing without knowledge of closing costs: major and minor fees that are a routine part of any home purchase. This can be because the lender increased fees on lender-controlled aspects of a transaction, or because a buyer chose a third party (appraiser, inspector, attorney, title company) that might charge higher prices than those estimated by the lender.
Fortunately, new rules and regulations provide more clarity on the closing costs that borrowers can expect to pay. As a rule of thumb, homebuyers can expect to pay closing costs equivalent to 3 percent to 5 percent of their loan amount. This is money that the homebuyers will spend in addition to their down payment, and those stretching to buy should know that they’ll need to cover these closing costs in addition to the savings reserves that some lenders require. (In other words, raiding your savings on closing day to pay unforeseen closing costs may not work out!)
Ask the seller to pay the closing costs
before you make an offer on a home, discuss with your agent whether you can negotiate with the seller to pay some or all of your closing costs. Many buyers who are stretching to finance a down payment make an offer that’s slightly higher and ask that, in exchange, the seller pay some or all of the closing costs. (Essentially, this amounts to financing closing costs within the mortgage loan.) Sellers eager to complete a transaction may offer to pay some closing costs in order to expedite a deal, or price their home slightly high on the assumption that they’ll be helping a buyer with closing.Understand the Good Faith Estimate
Make sure you get — and carefully review — the Good Faith Estimate that your lender must provide within three days of your loan application. This paperwork will describe to you the closing costs associated with your loan, ranging from lender-related fees (such as loan origination fees) to outsiders’ fees required to complete your transaction (inspection, appraisal, etc.). A good faith estimate is just that — an “estimate” — and some closing costs cited in that estimate can change. But as of January 2010, the government made it illegal for some of those costs to rise and capped other cost increases at no higher than 10 percent.Closing costs that cannot increase include points (once an interest rate is locked), loan origination fees and transfer taxes. The costs that can increase, but by no more than 10 percent, include any services required by a lender, title-related services, and government recording charges. Other closing costs that can change include services that the buyer selects, such as extra home inspections, title services not required by the lender, homeowner’s insurance, and escrow deposits.
Get more than one Good Faith Estimate
Because lenders all use the same form to provide customers with the closing cost numbers, it’s possible to compare the estimates of various lenders, and to negotiate with them on some fees.Read your HUD-1 Settlement Statement closely
Ask that your lender to provide the HUD-1 Settlement Statement well before closing, so you can comparing the closing costs listed in the statement with your Good Faith Estimate. You should feel free to ask your lender about any discrepancies or price adjustments you notice, so that you’re prepared and well-equipped to close with confidence.You do have recourse after the loan closes if you find out you’ve been overcharged.
DOCUMENTS AND FEES YOU SHOULD EXPECT AT CLOSING
Documents- Bank note: If you’re closing on a house or condo it’s called a mortgage. The mortgage “puts teeth into the note.” A note is a piece of paper that says I borrowed the money and I will promise to pay it back. The mortgage says what the bank will do if you don’t pay it back.
- Transfer documents: For a condo, the unit condo power of attorney gives the condominium limited power of attorney to conduct the business of the condo. A house does not have a transfer document
- Hud-1: Discloses fees and costs.
- Lead paint disclosure: The seller, buyer and usually the agent all sign. Most people waive their right to do a lead paint inspection.
Fees
- Attorney’s fees: Fees attendant to the loan, including the bank attorney’s fees.
- Transfer agent fee: If the co-op has
- Title charges: (for a condo or house) pays for the title report ordered by the lawyer. It’s a onetime insurance premium you’re paying for the title. It’s a research of the property to find any and all encumbrances. The seller has to secure all the claims against a property to close. The title company is ensuring that the buyer has a good, clean, marketable title to that home or condo.
RAGGED OLD FLAG
I walked through a county courthouse square,
On a park bench an old man was sitting there.
I said, “Your old courthouse is kinda run down.”
He said, “Naw, it’ll do for our little town.”
I said, “Your flagpole has leaned a little bit,
And that’s a Ragged Old Flag you got hanging on it.
He said, “Have a seat”, and I sat down.
“Is this the first time you’ve been to our little town?”
I said, “I think it is.” He said, “I don’t like to brag,
But we’re kinda proud of that Ragged Old Flag.”
“You see, we got a little hole in that flag there
When Washington took it across the Delaware.
And it got powder-burned the night Francis Scott Key
Sat watching it writing _Oh Say Can You See_.
And it got a bad rip in New Orleans
With Packingham and Jackson tuggin’ at its seams.”
“And it almost fell at the Alamo
Beside the Texas flag, but she waved on through.
She got cut with a sword at Chancellorsville
And she got cut again at Shiloh Hill.
There was Robert E. Lee, Beauregard, and Bragg,
And the south wind blew hard on that Ragged Old Flag.”
“On Flanders Field in World War I
She got a big hole from a Bertha gun.
She turned blood red in World War II
She hung limp and low by the time it was through.
She was in Korea and Vietnam.
She went where she was sent by her Uncle Sam.”
“She waved from our ships upon the briny foam,
And now they’ve about quit waving her back here at home.
In her own good land she’s been abused –
She’s been burned, dishonored, denied and refused.”
“And the government for which she stands
Is scandalized throughout the land.
And she’s getting threadbare and wearing thin,
But she’s in good shape for the shape she’s in.
‘Cause she’s been through the fire before
And I believe she can take a whole lot more.”
“So we raise her up every morning,
Take her down every night.
We don’t let her touch the ground
And we fold her up right.
On second thought I DO like to brag,
‘Cause I’m mighty proud of that Ragged Old Flag.”
Written by Johnny Cash
This is to our knowledge the only poem ever written by Johnny Cash that was not intended to be sung. He has performed this a number of times at the “Pops Goes the Fourth” concerts in Boston on the 4th of July. His book *Man In Black* reveals the inspiration behind it. Hope everyone else enjoys this as much as I do.
I walked through a county courthouse square,
On a park bench an old man was sitting there.
I said, “Your old courthouse is kinda run down.”
He said, “Naw, it’ll do for our little town.”
I said, “Your flagpole has leaned a little bit,
And that’s a Ragged Old Flag you got hanging on it.
He said, “Have a seat”, and I sat down.
“Is this the first time you’ve been to our little town?”
I said, “I think it is.” He said, “I don’t like to brag,
But we’re kinda proud of that Ragged Old Flag.”
“You see, we got a little hole in that flag there
When Washington took it across the Delaware.
And it got powder-burned the night Francis Scott Key
Sat watching it writing _Oh Say Can You See_.
And it got a bad rip in New Orleans
With Packingham and Jackson tuggin’ at its seams.”
“And it almost fell at the Alamo
Beside the Texas flag, but she waved on through.
She got cut with a sword at Chancellorsville
And she got cut again at Shiloh Hill.
There was Robert E. Lee, Beauregard, and Bragg,
And the south wind blew hard on that Ragged Old Flag.”
“On Flanders Field in World War I
She got a big hole from a Bertha gun.
She turned blood red in World War II
She hung limp and low by the time it was through.
She was in Korea and Vietnam.
She went where she was sent by her Uncle Sam.”
“She waved from our ships upon the briny foam,
And now they’ve about quit waving her back here at home.
In her own good land she’s been abused –
She’s been burned, dishonored, denied and refused.”
“And the government for which she stands
Is scandalized throughout the land.
And she’s getting threadbare and wearing thin,
But she’s in good shape for the shape she’s in.
‘Cause she’s been through the fire before
And I believe she can take a whole lot more.”
“So we raise her up every morning,
Take her down every night.
We don’t let her touch the ground
And we fold her up right.
On second thought I DO like to brag,
‘Cause I’m mighty proud of that Ragged Old Flag.”
Written by Johnny Cash
This is to our knowledge the only poem ever written by Johnny Cash that was not intended to be sung. He has performed this a number of times at the “Pops Goes the Fourth” concerts in Boston on the 4th of July. His book *Man In Black* reveals the inspiration behind it. Hope everyone else enjoys this as much as I do.
Tax Advantage Reminder
Reminder Of Tax Advantages To Take Advantage Of While Available
• Energy tax credits for homeowners. As part of the December changes, lawmakers extended the “25(C)” credit for energy-efficient improvements, but in a way that will be useful to few. The amount of the credit has shrunk to a maximum of $500 per taxpayer per lifetime, so those who took last year’s $1,500 credit under this provision don’t qualify. The current version expires at the end of 2011.
• Investment taxes. Rates continue at historic lows for both long-term capital gains and dividends. For taxpayers in the 15% income tax bracket and below, the rate is zero. For those in the 25% bracket and above, the rate is 15% (see table). Expires: end of 2012.
• Estate and gift taxes. The system has been overhauled, with a top rate of 35% and one exemption of $5 million per individual for estate, gift and generation-skipping taxes alike. For those who can stand to part with assets, it’s now possible to shift large amounts of wealth. Expires: end of 2012.
The annual exclusion for tax-free gifts remains $13,000 per donor. A giver may make an unlimited number of $13,000 gifts, as long as they are to different individuals. Gifts of tuition and payments for medical care also are exempt.
The Effects Of Color On Your Mood
While most of us may not spend a lot of time thinking about room color, it affects every day of our lives. Room color can influence our mood and our thoughts. Colors affect people in many ways, depending upon one’s age, gender, ethnic background or local climate. Certain colors or groups of colors tend to get a similar reaction from most people – the overall difference being in the shade or tones used. So it’s important to choose wisely.
The main color of your room can have an effect on your mood. These colors can make you feel anything from tranquil to rage. So when trying to create peace and harmony in your home choose your colors wisely. Some colors in large amounts will have just the opposite affect on you and your loved ones’ moods.
What mood do you want to create? Which colors will help you achieve that mood?
If you find this task difficult, look at magazines, decorating books and websites for ideas. This is a good approach to take even if you’re starting from scratch. Fabric, carpeting, furniture and tile are available in a more limited range of colors than is paint, so choose them first and then decide on your paint color. Once you’ve found what you where searching for limit the number of colors in a room to no more than three or four. Too many colors can make a room look busy or cluttered.
Paint is a fairly inexpensive and transforms a room more quickly than anything else you can do so you can afford to experiment a little.
Room Colors
Understand that colors behave in three basic ways: active, passive, and neutral, and you can easily match every room’s colors to your personal desires and taste and to the room’s purpose. Light colors are expansive and airy, they make rooms seem larger and brighter. Dark colors are sophisticated and warm; they give large rooms a more intimate appearance.
Red raises a room’s energy level. It’s a good choice when you want to stir up excitement, particularly at night. In the living room or dining room, red draws people together and stimulates conversation. In an entryway, it creates a strong first impression. Red has been shown to raise blood pressure, speed respiration and heart rate. It is usually considered too stimulating for bedrooms, but if you’re only in the room after dark, you’ll be seeing it mostly by lamplight, when the color will appear muted, rich, and elegant. Red, the most intense, pumps the adrenaline like no other hue.
Crimson can make some people feel irritable. With red invoking feels of rage and hostility is a color that should be avoided as the main color of a room. Sitting for long periods of time in a room this color will likely breakdown any peace and harmony you are striving to create in your home. Ancient cultures used the color red to stimulate the body and mind and to increase circulation.
Yellow captures the joy of sunshine and communicates happiness. It’s perfect for kitchens, dining rooms, and bathrooms, where happy color is energizing and uplifting. In halls, entries, and small spaces, yellow can feel expansive and welcoming. Yellow although is a cheery color is not a good choice in main color schemes of a room. People are more likely to lose their tempers in a yellow room. Babies also seem to cry more in a yellow room. This color tends to create feeling of frustration and anger in people. This color is the most fatiguing on the eyes .In chromotherapy yellow was believed to stimulate the nerves and purify the body.
Blue brings down blood pressure and slows respiration and heart rate. That’s why it’s considered calming, relaxing, and serene, and is often recommended for bedrooms and bathrooms. Be careful, however: A pastel blue that looks pretty on the paint chip can come across as unpleasantly chilly when it’s on the walls and furnishings, especially in a room that receives little natural light. If you opt for a light blue as the primary color in a room, balance it with warm hues in the furnishings
and fabrics.
To encourage relaxation in the rooms where people gather family rooms, living rooms, large kitchens consider warmer blues, such as periwinkle, or bright blues, such as cerulean or turquoise. Blue is known to have a calming effect when used as the main color of a room. When going with blue go for softer shades of blue. Dark blue has the opposite effect. Dark blue evokes feels of sadness. So refrain from using darker blues in your main color scheme. Stay with the lighter shades of blue to give you and your loved ones a calm effect.
Green is considered the most restful color for the eye. Combining the refreshing quality of blue and the cheerfulness of yellow, green is suited to almost any room in the house. In a kitchen, a sage or medium green cools things down; in a family room or living room, it encourages unwinding but has enough warmth to promote comfort and togetherness. In a bedroom, it’s relaxing and pleasant. Green also has a calming effect when used as a main color for decorating. It is believed to relieve stress by helping people relax. Also believed to help with fertility this is a great choice for the bedroom.
Purple in its darkest values (for example aubergine) is rich, dramatic, and sophisticated. It’s associated with luxury as well as creativity, and as an accent or secondary color, it gives a scheme depth. Lighter versions of purple, such as lavender and lilac, bring the same restful quality to bedrooms as blue does, but without the risk of feeling chilly.
Orange evokes excitement, enthusiasm and is an energetic color. While not a good idea for a living room or for bedrooms this color is great for an exercise room. It will bring all the emotions out that you need when jumping into your fitness routine. In ancient cultures orange was used to heal the lungs and increase energy levels.
Neutrals (black, gray, white, and brown) are basic to the decorator’s tool kit. All neutral schemes fall in and out of fashion, but their virtue lies in their flexibility: Add color to liven things up; subtract it to calm things down. Black is best used in small doses as an accent, indeed, some experts maintain that every room needs a touch of black to ground the color scheme and give it depth.
To make the job easier, you can rely on the interior designer’s most important color tool: the color wheel.
Ceiling and Walls
The ceiling represents one-sixth of the space in a room, but too often it gets nothing more than a coat of white paint. In fact, for decades, white has been considered not only the safest but also the best choice for ceilings. As a general rule, ceilings that are lighter than the walls feel higher, while those that are darker feel lower. Lower” need not mean claustrophobic: Visually lowered ceilings can evoke cozy intimacy.
These general guidelines are a good starting point in your search for a paint color. But remember that color choice is a very personal matter. If you are thinking of selling your home the best option would be neutral and use pops of color in your accents.
Green Ideas For Home Buyers
Green practices are a lifestyle choice and there’s no better way to get started with these practices, than to be prepared before even moving into a home. Here are a few simple steps homebuyers can take to make their home more environmentally friendly:
- Install energy efficient appliances. Did you know that the average home causes more air pollution than the average car? This is because the energy that powers homes is generated by power plants. By installing energy efficient appliances the American Council for an Energy-Efficient Economy estimates that we would decrease the demand for electricity by the equivalent of 25 large power plants!
- Conduct an energy audit of the home. Conducting a do-it-yourself home energy assessment is easy. With a simple walk-through, mark down each area inspected and the problems found. Keeping a checklist will help you prioritize the changes needed in order to make the home more energy efficient.
- Optimize the water heater. Cut down the water heater costs in just two simple steps. First, install an insulative jacket around the hot water heater and insulate the pipes. Insulative jackets cost between $10 and $20, plus pipe insulation is less than a buck for up to six feet. Secondly, turn the temperature on the water heater down to 120 degrees.
- Check the insulation. Protect the home against heat loss. Check every inch of your attic for areas with little or no insulation. Even the smallest area with damaged or no insulation will limit the effectiveness of containing the heat inside the home.
- Program the thermostats. Save up to 10% on heating and cooling costs by simply setting the thermostat back at times when no one is in the home or everyone is sleeping. It’s as simple as programming the thermostat to 78 degrees F or higher in the summer and 62 degrees F or lower in the winter.
- Plug air leaks. Air leaks are the greatest energy waster in the home, but they can be simple to plug. Installing weatherstripping and caulk will eliminate drafts around your windows, doors and electrical outlets, not to mention improve the overall comfort for those living in the home.
- Request a Blower Door Test. Determine the main sources for energy loss in the home with a Blower Door Test. Hiring a certified Home Energy Rater (HERS) will help you determine what areas of the home need improved beyond simply plugging air leaks.
- Low flow shower-heads. Low-flow shower-heads limit the water flow, but do not sacrifice water pressure. An efficient shower-head is easy to install, most simply screw on, and saves money.
- Install a clothesline. Drying laundry outdoors is an easy way to conserve energy. Installing an outdoor clothesline is easy and requires very little time and effort.
- Plant some trees. Properly placed trees and shrubs will block the wind and in the long run reduce your heating costs by 20%. Trees are also great for the environment and create a natural habitat for local birds around your home.
Do you have any green practices you would like to share with us? We would love to hear from you!!!!
