By: G. M. Filisko Published: February 10, 2010 By doing your homework before you buy, you’ll feel more content about your new home. 1. Decide how much home you can afford Generally, you can afford a home priced 2 to 3 times your gross income. Remember to consider costs every homeowner must cover: property taxes, insurance, maintenance, utilities, and community association fees, if applicable, as well as costs specific to your family, such as day care if you plan to have children. 2. Develop your home wish list Be honest about which features you must have and which you’d like to have. Handicap accessibility for an aging parent or special needs child is a must. Granite countertops and stainless steel appliances are in the bonus category. Come up with your top-five must-haves and top-five wants to help you focus your search and make a logical, rather than emotional, choice when home shopping. 3. Select where you want to live Make a list of your top-five community priorities, such as commute time, schools, and recreational facilities. Ask your REALTOR® to help you identify three to four target neighborhoods based on your priorities. 4. Start saving Have you saved enough money to qualify for a mortgage and cover your downpayment? Ideally, you should have 20% of the purchase price set aside for a downpayment, but some lenders allow as little as 5% down. A small downpayment preserves your savings for emergencies. However, the lower your downpayment, the higher the loan amount you’ll need to qualify for, and if you still qualify, the higher your monthly payment. Your downpayment size can also influence your interest rate and the type of loan you can get. Finally, if your downpayment is less than 20%, you’ll be required to purchase private mortgage insurance. Depending on the size of your loan, PMI can add hundreds to your monthly payment. Check with your state and local government for mortgage and downpayment assistance programs for first-time buyers. 5. Ask about all the costs before you sign A downpayment is just one homebuying cost. Your REALTOR® can tell you what other costs buyers commonly pay in your area—including home inspections, attorneys’ fees, and transfer fees of 2% to 7% of the home price. Tally up the extras you’ll also want to buy after you move-in, such as window coverings and patio furniture for your new yard. 6. Get your credit in order A credit report details your borrowing history, including any late payments and bad debts, and typically includes a credit score. Lenders lean heavily on your credit report and credit score in determining whether, how much, and at what interest rate to lend for a home. Most require a minimum credit score of 620 for a home mortgage. You’re entitled to free copies of your credit reports annually from the major credit bureaus: Equifax, Experian, and TransUnion. Order and then pore over them to ensure the information is accurate, and try to correct any errors before you buy. If your credit score isn’t up to snuff, the easiest ways to improve it are to pay every bill on time and pay down high credit card debt. 7. Get prequalified Meet with a lender to get a prequalification letter that says how much house you’re qualified to buy. Start gathering the paperwork your lender says it needs. Most want to see W-2 forms verifying your employment and income, copies of pay stubs, and two to four months of banking statements. If you’re self-employed, you’ll need your current profit and loss statement, a current balance sheet, and personal and business income tax returns for the previous two years. Consider your financing options. The longer the loan, the smaller your monthly payment. Fixed-rate mortgages offer payment certainty; an adjustable-rate mortgage offers a lower monthly payment. However, an adjustable-rate mortgage may adjust dramatically. Be sure to calculate your affordability at both the lowest and highest possible ARM rate. More from HouseLogicLearn how Fannie Mae and Freddie Mac mortgages can help you save on financingLearn more about the costs of homeownershipOther web resourcesHomebuyer counseling resourcesGet a free credit report from each of the three credit reporting bureaus G.M. Filisko is an attorney and award-winning writer who has thrice survived the homebuying process. A frequent contributor to many national publications including Bankrate.com, REALTOR® Magazine, and the American Bar Association Journal, she specializes in real estate, business, personal finance, and legal topics. Visit Houselogic.com for more articles like this. Reprinted from HouseLogic.com with permission of the NATIONAL ASSOCIATION OF REALTORS®.
2010 Olympic Gold Medalist and 2009 Overall World Cup Champion freestyle skier Hannah Kearney will be at Mount Sunapee Resort on Saturday, February 12 courtesy of Dartmouth-Hitchcock. Hannah and staff from Dartmouth-Hitchcock will be in the Spruce Lodge lobby from 11:30am until 3:00pm interacting with guests at the resort. Hannah will have her Olympic Gold Medal with her and guests can get autographs and photos with Hannah. She will also be presenting the awards for the Tecnica Cup that will be held at Mount Sunapee on Saturday for Senior, JI and JII alpine racers.
Some Ideas about Changing our Daily Lives
to Help Protect the Environment
Are you and your Valentine on the same page when it comes to the environment? It’s not surprising to learn that many couples have different opinions on “being green.” This is especially true given the number of daily go green messages we all hear about the car we drive, the food we eat, the energy we use, and the weather outside. Disputes and frustrations can arise from differences of opinion on how green to be. So if it is one of your goals to “green your Valentine,” take it slow. Just remember that any type of change is hard for people to accept and darn near impossible for some. Perhaps you can start with some simple things. Keep in mind that, no matter what changes you are implementing, it helps to explain how these efforts will not only benefit the environment, but also your lives, either by saving money or even eliminating real health risks. Below are a few ideas that may help couples to be green together. Recycle: To many, recycling is second nature, but to others it’s a hassle. They may not have grown up recycling so they just don’t do it. The key is to make recycling in your home as convenient as possible. Take responsibility for rinsing the containers or emptying the bins until it becomes a part of the normal routine. Your partner will see that it’s not difficult or too time consuming. Besides, with many towns adopting pay-as-you-throw policies, recycling will clearly save your family money by reducing the trash you throw away. Eat Local: Beware that the subject of food can be a very personal one and possibly one of the most difficult things to change about your loved one. So don’t expect them to become a vegetarian overnight. Try taking in a local farmer’s market (yes, even in the winter!) as a fun event together. This supports your neighboring farmers and reduces energy consumption required by the global transport of goods. Food from your farmer’s market is healthier and fresher because it hasn’t traveled thousands of miles to reach your dinner table. For a list of New Hampshire farmers’ markets visit http://m1e.net/c?82384231-CAspwxJlO7J32%406164077-sBVHwwV/tl3ck Green Clean: Housework can be a sore subject for any couple regardless of how green the products you use. Again, many people have preferences for certain products because that’s what their mom used, end of story. But if your partner is feeling nostalgic, introducing some old school (non-toxic) household cleaners like baking soda, vinegar and lemon juice could be the answer. Don’t forget to explain that many cleaners contain harmful toxins that are not only bad for the environment, but bad for your family to be breathing or touching. Greening your Valentine may take some time. All of us can make changes to our daily lives that would be beneficial to the environment, so don’t place any unfair expectations that your loved one is going to suddenly wake up one morning and decide it’s time to save the planet. But maybe they could start with your Valentines Day gift of organically raised roses, fair trade chocolates and a homemade card from recycled paper – it can’t hurt to suggest, right? # # # The February, 2011, issue of “GREENWorks:Ideas for a Cleaner Environment”Published by the NH Department of Environmental Services,Concord, NH (603) 271-371029 Hazen Drive, Concord, NH 03302.
By: G. M. Filisko Published: February 10, 2010 A solid game plan can help you narrow your homebuying search to find the best home for you. 1. Know thyself Understand the type of home that suits your personality. Do you prefer a new or existing home? A ranch or a multistory home? If you’re leaning toward a fixer-upper, are you truly handy, or will you need to budget for contractors? 2. Research before you look List the features you most want in a home and identify which are necessities and which are extras. Identify three to four neighborhoods you’d like to live in based on commute time, schools, recreation, crime, and price. Then hop onto REALTOR.com to get a feel for the homes available in your price range in your favorite neighborhoods. Use the results to prioritize your wants and needs so you can add in and weed out properties from the inventory you’d like to view. 3. Get your finances in order Generally, lenders say you can afford a home priced two to three times your gross income. Create a budget so you know how much you’re comfortable spending each month on housing. Don’t wait until you’ve found a home and made an offer to investigate financing. Gather your financial records and meet with a lender to get a prequalification letter spelling out how much you’re eligible to borrow. The lender won’t necessarily consider the extra fees you’ll pay when you purchase or your plans to begin a family or purchase a new car, so shop in a price range you’re comfortable with. Also, presenting an offer contingent on financing will make your bid less attractive to sellers. 4. Set a moving timeline Do you have blemishes on your credit that will take time to clear up? If you already own, have you sold your current home? If not, you’ll need to factor in the time needed to sell. If you rent, when is your lease up? Do you expect interest rates to jump anytime soon? All these factors will affect your buying, closing, and moving timelines. 5. Think long term Your future plans may dictate the type of home you’ll buy. Are you looking for a starter house with plans to move up in a few years, or do you hope to stay in the home for five to 10 years? With a starter, you may need to adjust your expectations. If you plan to nest, be sure your priority list helps you identify a home you’ll still love years from now. 6. Work with a REALTOR® Ask people you trust for referrals to a real estate professional they trust. Interview agents to determine which have expertise in the neighborhoods and type of homes you’re interested in. Because homebuying triggers many emotions, consider whether an agent’s style meshes with your personality. Also ask if the agent specializes in buyer representation. Unlike listing agents, whose first duty is to the seller, buyers’ reps work only for you even though they’re typically paid by the seller. Finally, check whether agents are REALTORS®, which means they’re members of the NATIONAL ASSOCIATION OF REALTORS®. NAR has been a champion of homeownership rights for more than a century. 7. Be realistic It’s OK to be picky about the home and neighborhood you want, but don’t be close-minded, unrealistic, or blinded by minor imperfections. If you insist on living in a cul-de-sac, you may miss out on great homes on streets that are just as quiet and secluded. On the flip side, don’t be so swayed by a “wow” feature that you forget about other issues—like noise levels—that can have a big impact on your quality of life. Use your priority list to evaluate each property, remembering there’s no such thing as the perfect home. 8. Limit the opinions you solicit It’s natural to seek reassurance when making a big financial decision. But you know that saying about too many cooks in the kitchen. If you need a second opinion, select one or two people. But remain true to your list of wants and needs so the final decision is based on criteria you’ve identified as important. More from HouseLogicHOAs: What You Need to Know About RulesA Financial Plan for Your HomeWhen It Pays to Do It Yourself G.M. Filisko is an attorney and award-winning writer who has found happiness in a brownstone in a historic Chicago neighborhood. A frequent contributor to many national publications including Bankrate.com, REALTOR® Magazine, and the American Bar Association Journal, she specializes in real estate, business, personal finance, and legal topics. Visit Houselogic.com for more articles like this. Reprinted from HouseLogic.com with permission of the NATIONAL ASSOCIATION OF REALTORS®.
Article By: G. M. Filisko
Published: March 11, 2010
By knowing how much mortgage you can handle, you can ensure that home ownership will fit in your budget.
1. The general rule of mortgage affordability
As a rule of thumb, you can typically afford a home priced two to three times your gross income. If you earn $100,000, you can typically afford a home between $200,000 and $300,000.
To understand how that rule applies to your particular financial situation, prepare a family budget and list all the costs of homeownership, like property taxes, insurance, maintenance, utilities, and community association fees, if applicable, as well as costs specific to your family, such as day care costs.
2. Factor in your downpayment
How much money do you have for a downpayment? The higher your downpayment, the lower your monthly payments will be. If you put down at least 20% of the home's cost, you may not have to get private mortgage insurance, which costs hundreds each month. That leaves more money for your mortgage payment.
The lower your downpayment, the higher the loan amount you’ll need to qualify for and the higher your monthly mortgage payment.
3. Consider your overall debt
Lenders generally follow the 28/41 rule. Your monthly mortgage payments covering your home loan principal, interest, taxes, and insurance shouldn’t total more than 28% of your gross annual income. Your overall monthly payments for your mortgage plus all your other bills, like car loans, utilities, and credit cards, shouldn’t exceed 41% of your gross annual income.
Here’s how that works. If your gross annual income is $100,000, multiply by 28% and then divide by 12 months to arrive at a monthly mortgage payment of $2,333 or less. Next, check the total of all your monthly bills including your potential mortgage and make sure they don’t top 41%, or $3,416 in our example.
4. Use your rent as a mortgage guide
The tax benefits of homeownership generally allow you to afford a mortgage payment—including taxes and insurance—of about one-third more than your current rent payment without changing your lifestyle. So you can multiply your current rent by 1.33 to arrive at a rough estimate of a mortgage payment.
Here’s an example. If you currently pay $1,500 per month in rent, you should be able to comfortably afford a $2,000 monthly mortgage payment after factoring in the tax benefits of homeownership.
However, if you’re struggling to keep up with your rent, consider what amount would be comfortable and use that for the calculation instead.
Also consider whether or not you’ll itemize your deductions. If you take the standard deduction, you can’t also deduct mortgage interest payments. Talking to a tax adviser, or using a tax software program to do a “what if” tax return, can help you see your tax situation more clearly.
More from HouseLogic
More on the mortgage interest deduction
More on the tax advantages of homeownership
Other web resources
A worksheet on home affordability
Freddie Mac information on home affordability
G.M. Filisko is an attorney and award-winning writer who’s owned her own home for more than 20 years. A frequent contributor to many national publications including Bankrate.com, REALTOR® Magazine, and the American Bar Association Journal, she specializes in real estate, business, personal finance, and legal topics. Visit Houselogic.com for more articles like this. Reprinted from HouseLogic.com with permission of the NATIONAL ASSOCIATION OF REALTORS®
When: Saturday, February 26th from 8:30 a.m-11:30 a.m. Where: Tucker Mountain Maple Co-op 224 Tucker Mountain Rd. Andover, NH This event is being co-sponsored by the New Hampshire Timberland Owners Association and the UNH Cooperative Extension. There is a $10 fee for members of NHTOA/NHTHC and $15, for non-members. This is a perfect course for hobby or backyard maple producers who might be thinking about expanding or upgrading their operations. This is a hands-on workshop covering such subjects as: sugarhouse design and safety, “professional” evaporator designs and sizing, tubing fundamentals, filtering and canning options, etc. Dress accordingly, as the class will be in the sugarhouse and outside in the woods. With a little luck, there might even be some sap to boil! To sign up, call: 603-224-9699 Class size is limited to 20, so call early!
As reported in the REAL Trends Update #1275 on February 1st, the number of properties going under contract nationally continue to increase. Through December, the numbers have gone up in five of the last six months (although this past December was 4% below a year ago). The fact that the contract activity is fairly steady indicates that the sales volume is approaching a “sustainable, healthy volume” in the range of 5.5 million sales. The media reporting of the reality of “modest gains” in the job market and other indications of an improving economy are giving consumers some confidence to seriously pursue the purchase of a home. The housing affordability conditions continue to be excellent for those active buyers, as there is still a great selection in inventory, sellers are motivated, and interest rates are still very appealing (and expected to rise only modestly over the first quarter and into the second). The article further reports that buyers shouldn’t expect to see continuing falling prices in all areas, as the median existing home price actually rose 0.3% in 2010. Predictions are for a flat or slight rise in this median selling price over 2011. The expectation is that home sales will rise about 8% to 5.3 million which brings it closer to what is considered a healthy, sustainable level of about 5.5 million.
A substantial majority of both home owners and current renters agree that owning a home is a smart decision over the long term. That’s according to the results of a National Association of REALTORS® survey of 3,793 adults conducted online by Harris Interactive.
The American Attitudes About Homeownership survey found that in today’s challenging economy, 95 percent of owners and 72 percent of renters believe that over a period of several years, it makes more sense to own a home. In addition, an overwhelming majority of home owners are happy with their decision to own a home – 93 percent of owners surveyed would buy again.
“Home owners and renters agree that home ownership benefits individuals and families, strengthens our communities, and is integral to our nation’s economy,” said National Association of Realtors® President Ron Phipps, broker-president of Phipps Realty in Warwick, R.I. “The results of this survey illustrate just how important issues related to home ownership are to people in this country.”
The survey uncovered some differences between home owners and renters, as well. While more than half of owners are “very” or “extremely” satisfied with the overall quality of their family life, only one-third of renters report the same levels of satisfaction. Similarly, 43 percent of home owners are very/extremely satisfied with their community life, compared with 30 percent of renters.
A majority of renters – 63 percent – said that it was at least somewhat likely that they would purchase a home at some point in the future. Among this group, young adults (18-29 years old) have the strongest aspirations for home ownership; only 8 percent of young adults said that it was “not at all likely” that they would purchase a home at some point in the future.
In today’s market, many aspiring home owners are faced with worries about job security and creditworthiness. Among renters who are very or extremely likely to buy a home in the future, three out of five consider confidence in job security and creditworthiness to be an obstacle.
One point of agreement between renters and home owners was support of the mortgage interest deduction (MID). Seventy-four percent of owners and 62 percent of renters say it’s “extremely” or “very” important that the MID remain in place.
“At a time when the middle class is under increasing economic pressures, both home owners and renters agree that the mortgage interest deduction should not be targeted for change,” said Phipps. “Given strong public support of and aspirations toward owning a home, we need to keep policies in place that support and encourage responsible, sustainable home ownership for our future.”
This survey was conducted online within the U.S. and fielded October 6-20, 2010. A total of 3,793 adults, 18 and older were surveyed, including 1,880 home owners, 1,115 renters, and 798 young adults. All samples came from the Harris Poll online database and were weighted for age, sex, race/ethnicity, education, region and household income to be representative of the U.S. general population of adults 18 and older. Propensity score weighting was also used to adjust for respondents’ propensity to be online.
Results are available online at www.realtor.org/statsanddata/homeownership/attitudes_homeown.
The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing 1.1 million members involved in all aspects of the residential and commercial real estate industries.
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Source: National Association of Realtors, January 19, 2011.
REALTOR® is a registered collective membership mark which may be used only by real estate professionals who are members of the NATIONAL ASSOCIATION OF REALTORS® and subscribe to its strict Code of Ethics. Not all real estate agents are REALTORS®. All REALTORS® are members of NAR.
Spring Ledge Farm in New London, NH will be open Friday the 21st from 3-6pm (yes, even with this snowy weather). Home grown potatoes (available in bulk as well), garlic, micro mix, beets, turnips & winter squashes and the best sweet potatoes you've ever tasted. Locally grown and raised offerings include Lamb, Beef, Eggs, Honey, Maple Syrup, Cheeses, Ice Cream, Cookies and Bread. Lamb from Hopewell Farms in Newbury, NH. Grass fed, true lamb raised on the fields at Hopewell Farms. This week, we'll have leg of lamb, ground lamb and rib chops. Next week there should be more cuts available. _________________________________________________________ Orchids by Crozer & Crozer - Katie Crozer will bring a great assortment of orchids in bloom. Orchids are especially beautiful this time of year, and the blooms last for months. Have a question about orchids? Ask Katie. _________________________________________________________
2010 marked Spring Ledge Farm's year of growing sweet potatoes. Mother Nature provided a perfect summer for this crop - hot and dry. New varieties of sweet potatoes include 'Baeurigard' and 'Covington', both bred to mature between 90-105 days. This is a shorter days to harvest than other sweet potatoes, which allows them a chance here in N.H. to grow a successful crop, even with our short summers They received the "seeds" as small slips of plants. Slips are small sprouts of the potato that do not yet have roots. They planted them immediately into the field on June 1st. They were planted through a black plastic layer of mulch, which warms the soil, retains moisture and keeps the weeds down. Plants were spaced 12" apart in rows that were 6 feet apart. They will have sweet potato slips available for purchase this spring, so you can try growing some in your garden this summer. Sweet potatoes are in the Ipomea family, the Morning Glory family. They are a vine that mounds and spreads out over the ground as it grows. In fact, dozens of varieties of sweet potatoes are used as ornamental plants and grown as annuals. They look great in hanging baskets, in mixed window boxes or in the garden beds. And yes, they also produce a sweet potato tuber, albeit smaller and a little less sweet. Here is a link to a few varieties that are in the Proven Winners line of plants. With last summer's heat, the vines filled out the rows by mid summer and continued growing until they were harvested just before frost, in late September. They were cured in a dry greenhouse and packed into boxes which were carried down to the cellar. In the cellar they are at just the right temperature and humidity for storage, along with their other storage potatoes. They keep the farmstand stocked with sweet potatoes, ready for your kitchen and table. Sweet potatoes are a fantastic source of Vitamin A, Vitamin C and fiber. Below are a few recipes for sweet potatoes, with hundreds more available at this site, appropriately named as "sweetpotatorecipes.net". _________________________________________________________ Sweet Potato and Chicken Empanadas You need:
1 lb Spring Ledge Sweet Potatoes
2 cooked chicken breasts, shredded
1 large Spring Ledge onion
1 clove Spring Ledge garlic
2 t. ground cumin
1 t. ground coriander
1 t. cinnamon
Olive oil, salt and pepper
1 package frozen puff pastry sheets
Peel and chop sweet potatoes into ½ inch cubes. Toss with olive oil, salt & pepper. Roast at 350 until soft, about 20 minutes. Heat 2 T olive oil, add spices and cook 2 minutes. Add onion and garlic, cooking until soft. Add chicken and cooked sweet potatoes. Thaw the puff pastry sheets and cut each in half. Spoon in as much filling as you can and still fold the top over, pressing the edges together. Bake at 350 20-25 minutes until browned. _________________________________________________________ Sweet Potato Fries You need: Many Spring Ledge Sweet Potatoes Olive Oil salt pepper Any other spices you feel like such as cajun, rosemary, or seasoned salt. Preheat oven to 425. Cut sweet potatoes into desired sized pieces. Toss with the olive oil and seasonings. Spread on a baking sheet and bake for 20-30 minutes or until soft, turning once.
Existing-home sales rose sharply in December, when sales increased for the fifth time in the past six months, according to the National Association of REALTORS®. Existing home sales, which are completed transactions that include single-family, townhomes, condominiums and co-ops, rose 12.3 percent to a seasonally adjusted annual rate of 5.28 million in December from an upwardly revised 4.70 million in November, but remain 2.9 percent below the 5.44 million pace in December 2009. Lawrence Yun, NAR chief economist, said sales are on an uptrend. “December was a good finish to 2010, when sales fluctuate more than normal. The pattern over the past six months is clearly showing a recovery,” he said. “The December pace is near the volume we’re expecting for 2011, so the market is getting much closer to an adequate, sustainable level. The recovery will likely continue as job growth gains momentum and rising rents encourage more renters into ownership while exceptional affordability conditions remain.” The national median existing-home price for all housing types was $168,800 in December, which is 1.0 percent below December 2009. Total housing inventory at the end of December fell 4.2 percent to 3.56 million existing homes available for sale, which represents an 8.1-month supply at the current sales pace, down from a 9.5-month supply in November. NAR President Ron Phipps, broker-president of Phipps Realty in Warwick, R.I., said buyers are responding to very good affordability conditions despite tight mortgage credit. “Historically low mortgage interest rates, stable home prices, and pent-up demand are drawing home buyers into the market,” Phipps said. “Recent home buyers have been successful with very low default rates, given the outstanding performance for loans originated in 2009 and 2010.” Regionally, existing-home sales in the Northeast jumped 13.0 percent to an annual pace of 870,000 in December but are 5.4 percent below December 2009. The median price in the Northeast was $237,300, which is 1.4 percent below a year ago. The National Association of REALTORS®, “The Voice for Real Estate,” is America’s largest trade association, representing 1.1 million members involved in all aspects of the residential and commercial real estate industries. Source: From the National Association of REALTORS, Washington, DC, January 20, 2011