RE/MAX Realty Center - Real Estate in Wisconsin

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Buying or Selling a home in Wisconsin

10 things polite Realtors won’t tell sellers — but should | Inman News

10 things polite Realtors won’t tell sellers — but should | Inman News





10 things polite Realtors won’t tell sellers — but should | Inman News

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Enter...

Create a quick entryway by lining a wall with a long bench and wall hooks. Use baskets underneath for storing shoes, scarves or sports equipment.

Whats in your water?

Property Transfer Well Inspections

What every REALTOR® needs to know about new DNR well water testing regulations.

By: Liesa Lehmann

A fourth of Wisconsin’s citizens drink water drawn from private wells. Wells can be safe, dependable sources of drinking water if sited properly and built correctly. Since protection and maintenance of a private well is the responsibility of the well owner, buyers may want to know the well’s condition or the drinking water quality when a property is for sale. State law does not require a well inspection or any water testing for a property transfer. However, if a well and pressure system inspection is part of the real estate transaction, several regulations do apply.

What’s required for the well inspection?

NR 812, the state’s well code, provides the regulations that apply to property transfer well and pressure system inspections effective October 1, 2014. If a well inspection is done as part of a property transfer, it must be done by an individual who is a licensed well driller or a licensed pump installer. The inspector will visit the property to conduct a visual inspection of the well and pressure system, looking for features that do not comply with state well code. The inspector will not remove the cap or otherwise enter the well, so the results will be based on what is observed. The inspector is required to take samples of the well water and have them analyzed for bacteria, nitrates and arsenic by a certified laboratory. The inspector is also required to search the property for any unused wells that may not be properly filled and sealed.

Inspection results

The inspector is required to provide results on a DNR form that clearly indicates whether the well and pressure system are in compliance with state well construction standards. If the inspector notes on the form that a well or pressure system has one or more known noncomplying features, this means the inspector believes there is a component of the system that does not comply with standards. Since the DNR does not have a role in the property transfer transaction, any decision on whether to bring the system in compliance is between the buyer and the seller.
The inspector can provide advice on how to bring the system into compliance. An inspector may also attach inspection notes, well construction reports or other documents to provide additional information to their client, such as the well performance or pump yield.

Sampling results

The certified laboratory will send the water sample test results to the person requesting the inspection. If a lab reports a well water sample as bacteriologically unsafe or at-risk, or reports nitrates levels above greater than 10 parts per million (ppm), or arsenic levels above 10 parts per billion (ppb), the well owner is encouraged to consider not drinking the water until they assess the health risks. A licensed well driller or pump installer can provide advice on options to treat the water, or determine whether a new well could provide safer water for the long term. DNR brochures provide more detail on contamination sources, health risks and options for well owners:

• Bacterial Contamination of Drinking Water Wells. 
• Nitrate in Drinking Water. 
• Arsenic in Drinking Water. 

To view these publications, visit dnr.wi.gov/topic.drinkingwater.

Why is testing for nitrates and arsenic now required?

Nitrate, along with bacteria, is considered an acute health risk. Testing for bacteria and nitrates are the most commonly required drinking water tests for public and private systems nationally. Nitrates are a growing groundwater contamination issue in Wisconsin.
Arsenic is considered a chronic health risk. Once thought to only be in eastern Wisconsin, arsenic has recently been found in groundwater in other counties throughout the state. The Education Subcommittee of Wisconsin’s Groundwater Coordinating Council (GCC) — a group with representatives from state agencies, the UW System, and the Governor’s office — identified the importance of more widespread arsenic testing several years ago, and forwarded this information to the GCC for consideration. Requirements for both nitrates and arsenic sampling were recommended and added through the formal rule revision process, to provide buyers and sellers with more information about the quality of private well water.

Additional tips

If a well inspection contingency is part of your transaction, here are a few tips to help with the property transfer:

• Schedule the well inspection early to allow time for inspection and sample analysis in advance of closing.
• Make sure the inspector is a licensed well driller or licensed pump installer and reports results on the required DNR form. 
• If the inspected well has a noncomplying feature, ask the inspector for recommendations on how to bring the well into compliance with state code.
• Find out if the lender has requirements that go beyond DNR regulations.
• Share information about private well ownership and drinking water quality with buyers and sellers.

For more information

Other records such as well construction reports and groundwater quality data are available using search tools on the DNR’s website. If a buyer requests a well inspection as a condition of purchase, the WRA has resources available to help you ensure the inspection meets requirements.
Visit the DNR’s Web pages for more details on the following topics:

• Property transfer well inspections: dnr.wi.gov/topic/Wells/RETransfer.html
• Licensed well driller and pump installers: dnr.wi.gov/topic/wells/contacts.html
• Laboratories certified for bacteria, nitrates or arsenic testing: dnr.wi.gov/regulations/labCert/#tabx7
• Private well testing: dnr.wi.gov/topic/wells/privatewelltest.html

Liesa Lehmann is the Private Water Supply Section Chief for the Wisconsin Department of Natural Resources’ Bureau of Drinking Water and Groundwater. She can be reached at 608-267-7649 or Liesa.LehmannKerler@wisconsin.gov.

Published: November 05, 2014

RE/MAX National Housing Report October 2014

Miracle Treat Day is today!

Miracle Treat Day is today!

Children’s Miracle Network and Dairy Queen are at it again….tempting our taste buds for a good cause!  Miracle Treat Day is today!

On Thursday August 14th, 2014, $1 or more from every Blizzard^® Treat purchased at participating DQ^® stores will be donated to your local Children’s Miracle Network Hospitals^® to help children in need.

If you ask us, that’s a very good reason to treat yourself to some ice cream!

Real Estate Tip of the Day

Median Home Price in July 2014

10 Tips for Moving with Pets

Moving to a new home can be stressful on your pets, but there are many things you can do to make the process as painless as possible. Experts at The Pet Realty Network in Naples, Fla., offer these helpful tips for easing the transition and keeping pets safe during the move.

1. Update your pet’s tag. Make sure your pet is wearing a sturdy collar with an identification tag that is labeled with your current contact information. The tag should include your destination location, telephone number, and cell phone number so that you can be reached immediately during the move.

2. Ask for veterinary records. If you’re moving far enough away that you’ll need a new vet, you should ask for a current copy of your pet’s vaccinations. You also can ask for your pet’s medical history to give to your new vet, although that can normally be faxed directly to the new medical-care provider upon request. Depending on your destination, your pet may need additional vaccinations, medications, and health certificates. Have your current vet's phone number handy in case of an emergency, or in case your new vet would like more information about your pet.

3. Keep medications and food on hand. Keep at least one week’s worth of food and medication with you in case of an emergency. Vets can’t write a prescription without a prior doctor/patient relationship, which can cause delays if you need medication right away. You may want to ask for an extra prescription refill before you move. The same preparation should be taken with special therapeutic foods — purchase an extra supply in case you can't find the food right away in your new area.

4. Seclude your pet from chaos. Pets can feel vulnerable on moving day. Keep them in a safe, quiet, well-ventilated place, such as the bathroom, on moving day with a “Do Not Disturb! Pets Inside!” sign posted on the door. There are many light, collapsible travel crates on the market if you choose to buy one. However, make sure your pet is familiar with the new crate before moving day by gradually introducing him or her to the crate before your trip. Be sure the crate is well-ventilated and sturdy enough for stress-chewers; otherwise, a nervous pet could escape.

5. Prepare a first aid kit. First aid is not a substitute for emergency veterinary care, but being prepared and knowing basic first aid could save your pet's life. A few recommended supplies: Your veterinarian's phone number, gauze to wrap wounds or to muzzle your pet, adhesive tape for bandages, non-stick bandages, towels, and hydrogen peroxide (3 percent). You can use a door, board, blanket or floor mat as an emergency stretcher and a soft cloth, rope, necktie, leash, or nylon stocking for an emergency muzzle.

6. Play it safe in the car. It’s best to travel with your dog in a crate; second-best is to use a restraining harness. When it comes to cats, it’s always best for their safety and yours to use a well-ventilated carrier in the car. Secure the crate or carrier with a seat belt and provide your pet with familiar toys. Never keep your pet in the open bed of a truck or the storage area of a moving van. In any season, a pet left alone in a parked vehicle is vulnerable to injury and theft. If you’ll be using overnight lodging, plan ahead by searching for pet-friendly hotels. Have plenty of kitty litter and plastic bags on hand, and keep your pet on its regular diet and eating schedule.

7. Get ready for takeoff. When traveling by air,check with the airline about any pet requirements or restrictions to be sure you’ve prepared your pet for a safe trip. Some airlines will allow pets in the cabin, depending on the animal’s size, but you’ll need to purchase a special airline crate that fits under the seat in front of you. Give yourself plenty of time to work out any arrangements necessary including consulting with your veterinarian and the U.S. Department of Agriculture. If traveling is stressful for your pet, consult your veterinarian about ways that might lessen the stress of travel.

8. Find a new veterinary clinic and emergency hospital. Before you move, ask your vet to recommend a doctor in your new locale. Talk to other pet owners when visiting the new community, and call the state veterinary medical association (VMA) for veterinarians in your location. When choosing a new veterinary hospital, ask for an impromptu tour; kennels should be kept clean at all times, not just when a client’s expected. You may also want to schedule an appointment to meet the vets. Now ask yourself: Are the receptionists, doctors, technicians, and assistants friendly, professional and knowledgeable? Are the office hours and location convenient? Does the clinic offer emergency or specialty services or boarding? If the hospital doesn’t meet your criteria, keep looking until you’re assured that your pet will receive the best possible care.

9. Prep your new home for pets. Pets may be frightened and confused in new surroundings. Upon your arrival at your new home, immediately set out all the familiar and necessary things your pet will need: food, water, medications, bed, litter box, toys, etc. Pack these items in a handy spot so they can be unpacked right away. Keep all external windows and doors closed when your pet is unsupervised, and be cautious of narrow gaps behind or between appliances where nervous pets may try to hide. If your old home is nearby, your pet may try to find a way back there. To be safe, give the new home owners or your former neighbors your phone number and a photo of your pet, and ask them to contact you if your pet is found nearby.

10. Learn more about your new area. Once you find a new veterinarian, ask if there are any local health concerns such as heartworm or Lyme disease, or any vaccinations or medications your pet may require. Also, be aware of any unique laws. For example, there are restrictive breed laws in some cities. Homeowner associations also may have restrictions — perhaps requiring that all dogs are kept on leashes. If you will be moving to a new country, carry an updated rabies vaccination and health certificate. It is very important to contact the Agriculture Department or embassy of the country or state to which you’re traveling to obtain specific information on special documents, quarantine, or costs to bring the animal into the country.

10 Tips for Moving with Children

 

Have a Family Meeting

Get the Kids' Feedback on the New Home

Purge Before Packing

Organize a Moving Sale

Research the New Place

Make Room Plans

Do a Site Visit

Host a 'See You Soon' Party

Map the Move

Be a Tourist in the New Place

Keeping Pests Out Of Your Home: 10 Pest Control Tips From Walker Management

 

We’re not talking about your noisy neighbor or your annoying uncle Fred.  These are tips to keep those pesky pests and insects out of your home.  You know all the pests you love to hate like roaches, ants, spiders, crickets, scorpions and mice.   Here are 10 great tips to help prevent pests from ever entering your home:

• Keep the floors clean: wipe up any spills immediately using soap and water not just a rag. Clean the entire flooring at least once a week and the kitchen floor at least twice a week.

• Take out the trash: every day, do not leave trash in your home overnight. This includes all trash cans not just in the kitchen.

• Keep fruit in the refrigerator: especially when ripe.

• Keep the sink clean: wash dishes daily. If you cannot clean the dishes, then at least fill the sink with soap and water.

• Keep a tight lid on things: make sure all food and beverage containers kept outside of the refrigerator are tightly sealed. Keep bags of cereal, seeds and grains in a sealed container.

• Keep things dry: make sure the bathrooms, kitchens and laundry rooms are dry.  Fix leaks immediately and wipe up any spills or splashes at once.

• Keep pets clean: brushing, bathing and using flea and tick protection on your animals, especially indoor/outdoor pets.

• Seal up the house: use caulk to seal up any cracks on baseboards, cabinets, pipes, ducts, and fittings inside the home. Check outside and caulk all door frames, window frames, roof joints and any visible cracks on the exterior surface.

• Keep the outside of the home free and clear: do not stack wood next to the home and do not leave piles of leaves laying around the yard.  Keep any plants cut back so pests cannot climb up and access your house. Keep gutters free of leaves and other debris that may harbor insects.

• Watch what you bring into the home: many people unknowingly bring in insects or insect eggs when buying fruits and vegetables. Boxes or bags used to bring home these items can many times harbor pests or eggs. Once in your home, they multiply and can cause infestations. German roaches are especially prone to be brought in this way.

15 Painting Tips to Paint Like a Pro

 

Primer comes before paint.
Tempted to skip the primer? Primer not only provides a good surface for the paint, but it also brings out the paint’s true color.

  Paint like a pro.
Painting is your chance to show off your skills. Use an edge pad for clean lines around doorframes, ceiling edges and corners so your walls look great — down to every last detail.

Create a sticky situation.
Paint won’t stick to the wall if you haven’t taken the time to prep. The surface must be clean, non-glossy and in good condition. 

One gallon at a time.
How much paint will it take to cover your walls? The pros recommend one gallon for every 400 square feet. Covering textured, rough or unprimed surfaces may require more.

Dry days make good painting days.
Moisture in the air keeps water-based paint from drying. Skip the humid afternoon paint project and slow drying walls won’t wreck the rest of your day.  

Put your sandwich bags to work.
Slip a small plastic bag over your doorknobs and tape the edge to avoid getting paint in places it wasn’t meant to go. You’re so resourceful.  

Out with the old.
If the old paint on your wall is flaking off, it’s a good idea to buy a paint scraper and get it out of the way. Once all the old paint is gone, sand the surface smooth, prime and your new paint will look great.

Clean finish.
If you’re looking for paint in high-traffic areas, semi-gloss is the way to go. Shiny and durable, semi-gloss is a parent’s best friend.

 Give the walls a sponge bath.
Washing your walls from top to bottom is always recommended because paint sticks better to a clean surface.

 Don’t look back.
Once an area starts to dry, it’s best to leave it alone. Going back over it can leave marks and color streaks in the paint’s surface. 

Polka dots look good on fabric—not floors.
Unless you’re trying to paint your floor, we recommend covering it up with a drop cloth. It’s the cheap, easy way to save yourself a whole lot of irritation. 

Take away the shine.
Paint doesn’t always adhere to glossy surfaces. We recommend using a light grade sandpaper to take the gloss off the surface so your new paint sticks like it should.  

Turn in the brush.
Small rooms can feel gigantic when it comes to painting. A roller will do a better job than a paint brush in less time.

 Spare the wall plates.
Before you start, remove all wall plates and tape off light switches and electrical outlets. You’ll get high marks for professional-looking results. 

Patience is a virtue.
You’ve completed your mission to fix every imperfection with patching compound. Now, make sure it’s dry. Then sand smooth, prime, and you’ll have a surface good enough for any pro.

Decorating Hacks: Genius Makeovers You Can do In A Day

       

Display a Great Collection on a Dining Room Table

In the living room of an Atlanta house by designer Beth Webb, an elm plank table from Clubcu, which often doubles as a dining table, dramatically displays a collection of Chinese porcelains. "The pieces don't have to match, but they do have to play together well," Webb says.

Hang an Interior Curtain

In the kitchen of the same Atlanta house, a linen curtain runs on a track spanning the room and can be pulled "to conceal the mess of preparation," Webb says. Steel-and-glass casements frame views of the pool and garden. KWC Gastro faucet.

 

Mix and Match Your Bedding

"We call this 'the sailor room,' because we went all out with the nautical theme," designer Ken Fulk says of a bedroom in his Massachusetts vacation house. "The mix-and-match nature of the patterns and faded batik prints make it feel like it's a collection of old textiles brought back from a journey at sea." John Robshaw bedding. Antique cage lights hang from an antique metal four-poster bed that belonged to the previous owner.

 

Put an Antique in the Bathroom

The guest bath in Fulk's vacation home "feels authentic to the period of the house, but also clean and modern," he says. Pedestal tub and fixtures from Sunrise Specialty.

 

Paint an Inexpensive Piece of Furniture White

This Kansas City house's dining room, a former loggia, is "light, bright, and airy," homeowner and designer Zim Loy says. "I accomplished that with lots of white paint." She bought a beat-up old $60 table at an estate sale and gave it a fresh new look by the painting the base high-gloss white. Its curves echo the arms of the Barbara Cosgrove chandelier.

 

Cover a Wall with Plates

Loy discovered Hackerware on eBay — "there's tons of it, and it's so cheap!" — and started collecting it for the dining room. Covering the whole wall with plates has the same effect as "one big piece of art."

Wallpaper Your Vinyl Window Shades

"I had a roll of wallpaper in my office that was left over from a photo shoot we did, and I was about to put it in the trash when I thought, 'No, I can do something with this,' " Loy says. "Then I thought of the vinyl shades in our guest room. So I wallpapered them. You gotta go for it." The vinyl shades are papered in Pierre Frey's Espalier. The canopy bed was painted black to show off its silhouette.

 

Dress Up Hallways with Turkish Runners

In the second-floor hallway of a California house, designer Betsy Burnham overlaps Turkish runners from Rugs & Art, drawing the eye to a Moroccan-inspired reading nook. The vintage carpets "can transform a plain hallway into a decorated space," Burnham says. "A really faded, tattered rug is instantly Bohemian." The window seat is covered in Tibet woven silk from S. Harris. Pillows by Hollywood at Home; garden stool from Rolling Greens.

Move Seating Away From the Walls

"Float furniture away from the walls: It creates more intimate seating," designer Betsy Burnham says. She did just that in the living room of this California house. The console table separating back-to-back sofas is decked with vintage goddess figurine lamps and Chinese monkeys "for a Tony Duquette, William Haines flavor." Sellarsbrook rug, the Rug Company. Rectangular Cocktail Table, Baker.

Reupholster Furniture with Old Curtains

"Everything in this room has a story," designer Podge Bune says of her Hamptons cottage's living room. "The easy chair is covered in my old dining room curtains, a Designers Guild fabric they no longer make."

Tips For Buying A House

1. Don't buy if you can't stay put.

 

2. Start by shoring up your credit.

 

3. Aim for a home you can really afford.

 

4. If you can't put down the usual 20 percent, you may still qualify for a loan.

 

5. Buy in a district with good schools.

 

6. Get professional help.

 

7. Choose carefully between points and rate.

 

8. Before house hunting, get pre-approved.

 

9. Do your homework before bidding.

 

10. Hire a home inspector.

5 Pet-friendly Home Additions

• 

  Next up

  7 home-inspection 'gotchas'
  Here's what these surprise repairs may end up costing you.
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• 5 time-saving garden tools
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• 6 post-winter-storm home repairs
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• 4 tips for small-space living
  If you're accustomed to larger quarters, check out these ideas.
• 5 ticking time bombs in your home
  Pay attention to these maintenance and repair issues before they blow up.
• 30 fixes every homeowner should know
  These skills are sure to come in handy at some point.
• 6 worst home fixes for the money
  These home renovation projects yield the smallest return at resale.

 

• Next:

Smart flooring

Linoleum flooring is becoming popular among designers because it has anti-microbial properties, it's easy to maintain and it is more environmentally sustainable than vinyl flooring, says Nancy Chwiecko, associate professor of interior design at the Rochester Institute of Technology in Rochester, N.Y., and author of the book "There's a Dog in the House."
Wood floors, too, are easier to maintain than carpet if you have a pet. Pick light to medium finishes, lower-luster glosses or distressed woods to help minimize scratches from pet nails. Keep your pet's nails rounded and short to prevent scratches.
If you prefer carpet, consider modular floor-carpet tiles from companies such as Flor because they can be replaced easily in case of accidents, Chwiecko says. Flor will recycle any returned tiles.
What if you have to move? There's no need to replace the floors, as long as they're still looking great.

Pet doors  

If you work long hours or spend a lot of time away from home, pet doors can be a great way to make sure your dog isn't stuck inside the house for hours on end.
Pet doors can be pricey, costing between $80 and $500. But there's an array of options, says Jon Mortensen, owner of Seattle-based PetDoorStore.com, which sells thousands of pet doors each year. There are doors for walls, screens, windows — even sliding-glass doors. Some doors are activated by microchip for more security; others are built to withstand 50 mph winds.
What if you have to move? "It's possible you may have to replace the door, but not certain," says Sharon Berry, a managing broker with Windermere Real Estate in Redmond, Wash. "It's all between the buyer and seller." If the buyer asks you to replace the door, the cost ranges from $700 to thousands.

Latches on cabinets and toilets

Childproof latches can be useful when you have a puppy or kitten that is fascinated with drinking or playing in the toilet or getting into cupboards. It's important to keep pets from getting into food, cleaners and medicine. Lysol-type cleaners, chocolate, raisins, grapes, macadamia nuts and xylitol sweetener in gum can be toxic — even fatal — for dogs. Spinach leaves, potpourri and acetaminophen, the key ingredient in Tylenol, are extremely toxic for cats.
"Pets can chew through plastic bottles, so keep medicines away from your pets," says Dr. Patricia Olson, chief veterinary adviser for the American Humane Association.
Remember, too, that cats and dogs like to chew on electrical cords, so tuck them away, unplug them or use plastic covers that snap over them. Child gates are an easy way to keep your dog away from certain areas of the house.
What if you have to move? Childproofing isn't a detriment to home value, Berry says. Buyers can remove these features if they don't want them. Childproof latches can be removed easily, as can child gates.

Window screens

If you live in a high-rise with open windows, screens are vital to keeping your pets safe, especially cats.
"People have the misconception that cats have good instincts and won't jump out," says Dr. Louise Murray, vice president of Bergh Memorial Animal Hospital in Manhattan.
During warm months, the hospital sees two to four cats a week that are hurt or killed in falls. She says that many people think that bars or child window guards will help, but cats can get through them. Cats will also jump from balconies and fire escapes, she says.
If you rent and do not want to spend money on permanent screens, you could purchase inexpensive, accordion-style screens that fit various-size windows.
What if you have to move? Most houses have screens, Berry says. There's no need to remove them if you sell your house.

Fence

"I think good fencing is vital," Chwiecko says. "You're going to have a happier dog, a happier family and happier neighbors."
Invisible fences can be a good option for people whose neighborhoods do not permit physical fences. But many pet experts do not recommend them because they can inflict pain, and some dogs test the fences every day. Some dogs also have also become more aggressive because they associate the shock from the fence with passers-by, Blake says.
If you have a physical fence, ensure it is in good condition and free of loose boards or metal that could hurt your pet or allow it to get out. Another tip: Keep benches and big rocks away from fences; they can be launching points for a dog to jump the fence.
What if you have to move? Good fences make good neighbors and make good overall sense to keep, Berry says.
 

5 Top Reasons People Buy

Benefits of Greenery in the Home

7 Pros and 7 Cons of Refinancing

Upside 1: Cheap loans

The low interest rates are the best reason to refinance now, says Andrew Schrage of Money Crashers, a personal-finance site. Recent numbers for 30-year fixed-rate loans are lower than the one-year introductory rates on adjustable-rate mortgages in most years since 1992.

Upside 2: Improved loan period

In addition to lowering your rate, consider shortening the length of your loan. In the first years of a 30-year loan, you're paying almost all interest — it's not until the later years that you start paying principal. With rates this low, you can often both lower your monthly payment and shorten the length of your loan, saving thousands in interest, says Stuart Feldstein of SMR Research Corp., which does market research on the home-mortgage business.
But there's an opposite school of thought on how to use a refi. Ric Edelman, founder of one of the country's biggest wealth-advisory firms, recommends refinancing into another 30-year fixed (or from a 15- to a 30-year) and using the savings on your payments for other investments that will generate higher returns. He adds that a longer mortgage term also nets you a bigger annual tax deduction — at least for now — than if you shorten the term.

Upside 3: More options

Be sure to shop around — the gap between the best and worst deals can be as much as a full percentage point, according to The Wall Street Journal.
Elizabeth Weintraub, a Sacramento, Calif.-based real estate agent who covers refinancing issues for About.com, says consumers should go local when possible: "That face-to-face with somebody that you've actually met, it makes a difference versus somebody you're talking to on the phone." Borrowers looking to refinance also aren't under as much pressure as new homebuyers, she says. "When you do a refinance, you have the luxury of time to really investigate your options ... Because you can walk away from a refinance. You don't have to close that loan."

Upside 4: More leverage

Because so many loan providers are offering low rates right now, you'll have more negotiating power to get a better deal. Federal law requires lenders to give you an estimate of what they'll charge to complete your refi. Weintraub suggests bargaining to eliminate or reduce "garbage fees" that appear on your estimate — things like document preparation, wire transfer, courier, commitment and rate-lock fees — which can add $800 or more to the cost of the loan. "There's usually some flexibility there," she says. She even suggests that if the interest rate falls just before you close on your loan, you should ask the lender to give you the lower prevailing rate. "They'll say no, you can't do that, you've locked in your rate and you're stuck," she says. "But that's not true … if they find out you're going to cancel it, all of a sudden that rate comes down."

Upside 5: Escape from adjustable-rate mortgages

Refinancing allows people with adjustable-rate mortgages (ARMs) to convert to fixed-rate loans, an advantage even if they don't save on their monthly payment immediately. "If you have an ARM, refinancing to a 30-year fixed can not only lower your rate but dramatically improve the safety of your loan by eliminating the risk that your rate might increase," Edelman says.

Upside 6: Loan mergers

Refinancing lets you consolidate a second mortgage or a home-equity loan with your home mortgage, which can save money by allowing you to pay one low rate on the entire amount, instead of a low percentage on your primary mortgage and a higher one on the other loans.

Upside 7: Cash in your pocket

If you have equity in your house, a cash-out refinance lets you pull out capital for productive uses, Schrage says. But don't make the mistake of so many people leading up to the financial crisis — draining equity to pay for vacations or consumer purchases.
"I'd only consider it for necessary expenses, such as a home renovation or [paying for] college…" he says.

Downside 1: Fees

Even if you get rid of junk fees, the cost of refinancing can offset the savings you'll get on a lower monthly payment under your new loan. Look carefully at the refinancing fees to make sure your savings will pay back those costs in a reasonable timeframe, says Don Martin, an independent financial adviser in Los Altos, Calif. Typical fees, the Federal Reserve says, range from $1,900 to $3,650, not including any loan origination fee (0 to 1.5 percent of the loan principal), private mortgage insurance (0.5 percent to 1.5 percent), or loan discount points (0 to 3 percent).
Use a refi calculator to determine your break-even point — the number of months it will take you, at your lower payment, to recoup what the lender charges for refinancing your loan. To figure out when interest rates have fallen low enough to consider refinancing, use this calculator from the National Bureau of Economic Research.

Downside 2: Financial risk

Weintraub notes that in some states your initial mortgage is a "nonrecourse" loan — if you don't pay, the bank can foreclose your house and keep the proceeds from a sale but can't come after your other assets if there's a remaining deficit. But refinanced mortgage loans are usually "recourse" products — if you default and the sale of your house doesn't cover your loan amount, the bank can seize other assets. If you're worried about what happens in your state if you default on a refi, check with the state's housing finance agency.

Downside 3: Few people qualify

Banks are being more selective given the lending problems that caused the housing crash, Feldstein says. People with even average credit scores may start the refinancing process but be rejected or pay a higher rate once banks check their scores. To get the lowest rates being advertised now, you'll need a score of 720 or above, Chris Boulter, president of loan specialist Val-Chris Investments tells Yahoo Homes.

Downside 4: Prepayment penalties

Your original loan may include a penalty for paying it off early, which includes refinancing it. The Truth in Lending statement for the loan should include information on whether it has a penalty.
You should include the costs of any penalty in calculating the time it will take you to break even on the refi. If you're refinancing with the same lender, try asking whether that penalty can be waived.

Downside 5: Less mobility

If you refinance, you'll have to stay in your house for at least a few years to recoup the fees you paid to get the lower monthly rate. Otherwise, Schrage says, you'll lose money on the deal. For example, on a refinance of $100,000 in which you drop your interest rate by 2 percentage points and pay $3,800 in fees, it would take about 32 months to break even.

Downside 6: Little savings for recent refinancers

Many people have already refinanced in the past year won't save much by doing so again now. Feldstein says refinancing "may not be such a hot idea" if you're not going to drop your interest rate by at least a point and a half.

Downside 7: Paperwork, paperwork

You have to suffer a little to get that lower rate. At a minimum, that means completing a lengthy loan application that allows for a complete review of your finances and employment history, including providing recent income-tax returns, pay stubs, investment and loan statements, and proof of checking and savings account balances. You'll also need to work with the loan officer to get a survey and appraisal completed, provide proof of homeowner's insurance, and sign off on a blizzard of documents at settlement.
"The loan-qualification process is more onerous than ever because of the credit crisis five years ago," Edelman says. So if you pursue a refi, he says, you're in for "an annoying couple of months."

LISTING IN WAUKESHA COUNTY: 1782 STATE HIGHWAY 83

10 Reasons to Buy a Home

1. You can get a good deal. Especially if you play hardball. This is a buyer's market. Most of the other buyers have now vanished, as the tax credits on purchases have just expired. We're four to five years into the biggest housing bust in modern history. And prices have come down a long way– about 30% from their peak, according to Standard & Poor's Case-Shiller Index, which tracks home prices in 20 big cities. Yes, it's mixed. New York is only down 20%. Arizona has halved. Will prices fall further? Sure, they could. You'll never catch the bottom. It doesn't really matter so much in the long haul.

Where is fair value? Fund manager Jeremy Grantham at GMO, who predicted the bust with remarkable accuracy, said two years ago that home prices needed to fall another 17% to reach fair value in relation to household incomes. Case-Shiller since then: Down 18%.

 

2. Mortgages are cheap. You can get a 30-year loan for around 4.3%. What's not to like? These are the lowest rates on record. As recently as two years ago they were about 6.3%. That drop slashes your monthly repayment by a fifth. If inflation picks up, you won't see these mortgage rates again in your lifetime. And if we get deflation, and rates fall further, you can refi.

 

3. You'll save on taxes. You can deduct the mortgage interest from your income taxes. You can deduct your real estate taxes. And you'll get a tax break on capital gains–if any–when you sell. Sure, you'll need to do your math. You'll only get the income tax break if you itemize your deductions, and many people may be better off taking the standard deduction instead. The breaks are more valuable the more you earn, and the bigger your mortgage. But many people will find that these tax breaks mean owning costs them less, often a lot less, than renting.

The June 13, 2005 cover of Time.

                           

4. It'll be yours. You can have the kitchen and bathrooms you want. You can move the walls, build an extension–zoning permitted–or paint everything bright orange. Few landlords are so indulgent; for renters, these types of changes are often impossible. You'll feel better about your own place if you own it than if you rent. Many years ago, when I was working for a political campaign in England, I toured a working-class northern town. Mrs. Thatcher had just begun selling off public housing to the tenants. "You can tell the ones that have been bought," said my local guide. "They've painted the front door. It's the first thing people do when they buy." It was a small sign that said something big.

5. You'll get a better home. In many parts of the country it can be really hard to find a good rental. All the best places are sold as condos. Money talks. Once again, this is a case by case issue: In Miami right now there are so many vacant luxury condos that owners will rent them out for a fraction of the cost of owning. But few places are so favored. Generally speaking, if you want the best home in the best neighborhood, you're better off buying.

 

6. It offers some inflation protection. No, it's not perfect. But studies by Professor Karl "Chip" Case (of Case-Shiller), and others, suggest that over the long-term housing has tended to beat inflation by a couple of percentage points a year. That's valuable inflation insurance, especially if you're young and raising a family and thinking about the next 30 or 40 years. In the recent past, inflation-protected government bonds, or TIPS, offered an easier form of inflation insurance. But yields there have plummeted of late. That also makes homeownership look a little better by contrast.

                                

                  

A house for sale in Shelby, Ohio. Associated Press

           

7. It's risk capital. No, your home isn't the stock market and you shouldn't view it as the way to get rich. But if the economy does surprise us all and start booming, sooner or later real estate prices will head up again, too. One lesson from the last few years is that stocks are incredibly hard for most normal people to own in large quantities–for practical as well as psychological reasons. Equity in a home is another way of linking part of your portfolio to the long-term growth of the economy–if it happens–and still managing to sleep at night.

 

8. It's forced savings. If you can rent an apartment for $2,000 month instead of buying one for $2,400 a month, renting may make sense. But will you save that $400 for your future? A lot of people won't. Most, I dare say. Once again, you have to do your math, but the part of your mortgage payment that goes to principal repayment isn't a cost. You're just paying yourself by building equity. As a forced monthly saving, it's a good discipline.

 

9. There is a lot to choose from. There is a glut of homes in most of the country. The National Association of Realtors puts the current inventory at around 4 million homes. That's below last year's peak, but well above typical levels, and enough for about a year's worth of sales. More keeping coming onto the market, too, as the banks slowly unload their inventory of unsold properties. That means great choice, as well as great prices.

 

10. Sooner or later, the market will clear. Demand and supply will meet. The population is forecast to grow by more than 100 million people over the next 40 years. That means maybe 40 million new households looking for homes. Meanwhile, this housing glut will work itself out. Many of the homes will be bought. But many more will simply be destroyed–either deliberately, or by inaction. This is already happening. Even two years ago, when I toured the housing slump in western Florida, I saw bankrupt condo developments that were fast becoming derelict. And, finally, a lot of the "glut" simply won't matter: It's concentrated in a few areas, like Florida and Nevada. Unless you live there, the glut won't have any long-term impact on housing supply in your town.

LISTING IN WAUKESHA COUNTY: 2307 NAGAWICKA ROAD

Reasons to Own