Foreclosures Caused by Rising Energy Costs
September 20, 2008
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Almost daily, you hear news reports about the increasing numbers of homes in foreclosure. What you don’t hear reported is how increasing energy costs are so often the cause of this devastating problem.
Are you losing your home because you can’t afford to pay your energy bills and your mortgage? If you aren’t facing foreclosure can you afford temperature settings that keep you feeling comfortable inside your home?
During the recent U.S. housing boom, builders completed homes quickly. Interest rates were low and investors eager to cash in on high returns on investments. Unless you were knowledgeable about energy-efficient home features and made sure they were included during construction, chances are your new home wastes a lot of energy. It’s also likely you don’t feel comfortable in your home due to uneven room temperatures, drafts, cold floors, etc.
There was a time when home air conditioning was a luxury. Now it seems more like a necessity. Average temperatures in North America have risen over the last 20 years, remaining high for longer periods and forcing people to turn on air conditioners powered by electricity to survive excessive exposure to heat.
Rate caps that once held down electricity costs are ending countrywide. Maryland residents recently experienced the shock of a 70% electric rate increase. Pennsylvania residents will receive the first of several rate increases starting in 2008.
The mortgage industry facing huge losses from foreclosures is working with homeowners to reduce monthly mortgage costs. A reduction in mortgage costs may help, but this is only a temporary solution. Moving to another home, unless it is energy efficient will not solve the problem.
The best solution is to implement energy saving features in your home as quickly as possible. This will not only be good for you financially, it will also be good for the planet.
Siti Crook, 2007
Siti Crook and the Energy Efficient Homes Team are experts in the field of energy efficient homes since the 1980s. She has an insightful perspective on rising energy costs and their affect on the real estate industry. If youd like more information about current real estate trends visit Real Estate Investment Articles! Want to save energy? http://www.eehteam.com
Decorating On A Budget
August 16, 2008
If you love decorating and you love a challenge then you’ll love the challenge of decorating on a budget. There’s nothing quite like fighting your impulses to buy everything you see just so that you keep to your budget, and trying to get everything you need to decorate your house without breaking your budget. It is a losing battle I can tell you that much.
Sometimes the desire to buy the amazing things you see in the home improvement stores can be almost overwhelming. There isn’t too much that you can do about that except to move on as quickly as possible on to the next item on your list.
That said, decorating on a budget can be quite fun if you can manage to loosen up a bit and not drool all over the expensive items. There are many inexpensive items you can buy that will look like their expensive cousins if they’re displayed properly. And that’s really the challenge of decorating on a budge, the ability to take an inexpensive item and be able to disguise its true worth and make it look like a hundred bucks instead.
Then you also have the challenge of actually staying within your budget. For me now, that’s more of a challenge than anything else as I regularly tend to go overboard. Unfortunately if you’re decorating on a budget then the very last that you want to do is to go overboard.
If you do spend more than is feasible on one particular piece then you can be sure that everything else on your list is going to get thrown off and no matter how hard you try it will be difficult to get everything back on track.
The only way that you could even justify going way over budget for one piece of furnishing is if the quality is exceptional and you’re thinking of making it the key piece of the room. If that’s the case then you can always get away with something as your other pieces will necessarily be less expensive. In this case what you need to do is to highlight this expensive piece and use the other pieces to enhance it.
Decorating on a budget need not mean that you have to cut down on quality to get everything that you want. As you are decorating on a budget it can also be fun, and creatively undertaken, it can also be done with flair.
They’ve Frozen my Home Equity Line of Credit
April 20, 2008
This is part of our Financial Literacy Month Question and Answer series
Question: Cindy, I just received a letter from my bank that they’ve frozen my home equity line of credit. I have great credit and always make my payments on time. What’s going on? ~ Sally and Jim
Answer: Dear Sally and Jim, I think many people are going to be hearing this same line from their bankers because of the sub-prime mess.
When you apply for a home equity line of credit (HELOC), the bank will look at the value of the property and allow you to borrow a certain amount of the equity. (Equity is how much you own in the property). However, if home prices in your area are dropping (and who’s aren’t?), then you may not own as much equity. As a matter of fact, if you owe more than you own, it’s known as being “under water”.
This all makes lenders very nervous and they’re response is to freeze your line of credit. But, you can ask your lender to review your individual situation. If you still have lots of equity in your home, are paying on time and have a good credit score, they have the option of unfreezing your home equity line of credit for you.
The other alternative is to seek out a new lender. I highly recommend ING Direct (www.INGDirect.com) for equity lines and savings accounts.
As a home owner in these tough times, you (and the bank) want to make sure that you don’t owe more than your home is worth and that you don’t get into a situation where you can’t pay your mortgage.
If you are in either of these situations, call me for a consultation so you can get back into positive territory and protect the investment you’ve made in your home.
Warmly, Cindy
Lowering your Phone Bills
April 19, 2008
This is part of our Financial Literacy Month Question and Answer series
Question: Do you have any good tips for saving money on my phone bill? How about my cell?
Answer: Sure, here are a few:
- You may have several telephone service providers in your area. Spend a few minutes with each of them to find out who offers the best price for the services you need.
- Call you own service provider and find out if they’ve lowered the rates. Mine had cut the rates in half without notifying me!
- Check with your internet service provider and cable TV company to see if they can bundle your telephone in with your other services (you’ll pay less taxes, too).
- Consider eliminating your land line. I’ve noticed more and more people just relying on their cell phones for everything.
- If your family uses a lot of text messaging, it may be cheaper to add unlimited family texting to your bill rather than paying for individual messages.
- With 1-800-FREE411, it’s the end of pesky 411 charges and the beginning of free directory
assistance. Need the number for that great pizza place or local florist? Just pick up the phone and dial 1-800-FREE411. Put 1-800-373-3411on your speed dial.
Warmly, Cindy
13 Ways to Lower Utility Bills
April 18, 2008
This is part of our Financial Literacy Month Question and Answer series
Question: With summer coming up, I just dread my electric bills. Isn’t there any way to keep them low? ~ Thomas
Answer: Thomas, what a hot topic!
The key to achieving maximum energy savings in your home is to create a whole-house energy efficiency plan. View your home as an energy system with interdependent parts. For example, your heating system is not just a furnace-it’s a heat-delivery system that starts at the furnace and delivers heat throughout your home using a network of ducts. Even a top-of-the-line, energy-efficient furnace will burn a lot of fuel if the ducts, walls, attic, windows, and doors are not insulated and leak. Taking a whole-house approach to saving energy ensures that dollars you invest to save energy are spent wisely.
Easy low-cost and no-cost ways to save energy.
- Set your thermostat comfortably low in the winter (68-70) and comfortably high in the summer (78-80). Install a programmable thermostat that is compatible with your heating and cooling system.
- Use compact fluorescent light bulbs. Don’t just throw these in the trash because they have mercury in them. Contact your recycling center to find out how to dispose of them properly.
- Air dry dishes instead of using your dishwasher’s drying cycle. If your utility company offers off-peak rates, use your dishwasher (and washing machine/dryer) at night.
- Turn off your computer and other home electronics such as TVs and DVD players when not in use. Smart power strips are will turn off electricity to appliances and electronic devices that are not in use.
- Lower the thermostat on your hot water heater to 120° F.
- Take short showers instead of baths.
- Wash only full loads of dishes and clothes. Use cold water for clothes washing and hang your clothes to dry.
- Look for the ENERGY STAR® label on home appliances and products. ENERGY STAR® products meet strict efficiency guidelines set by the U.S. Environmental Protection Agency and the U.S. Department of Energy.
- Have your air conditioner tuned up annually and change filters on both your air conditioner and furnace monthly when in use.
- Use your furnace fan to circulate air throughout your house. This can make it seem cooler without running the air conditioner.
- Install attic fans to push out that super hot air in the attic (up to 130 degrees!). I did this a few years ago and my upstairs is a lot cooler and I don’t have to use my air conditioner as much at night to get to sleep. Ask your electrician to install the quietest fan available.
- Open your windows and curtains at night when it cools down and close them in the morning to keep the heat and beating sun out.
- Install insulating clear film on your windows. You won’t even notice it but it will keep both heat and cold out.
Warmly, Cindy
