Anne's Advice
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Dear Anne, I keep hearing that my lot needs a perc test. What is this and why is it even necessary?
-Puzzled in Potomac
A: Dear Puzzled, A perc test is also known as a Percolation Test and is a very important aspect of the lot buying process. We would like to see a perc test done on every single lot before it is purchased. Essentially, the test determines the absorption rate of the soil for a "leach field" or septic drain field. The reason that this examination is so vital is because it reveals the lot's soil quality. All bacteria type organisms that enter the septic tank will eventually need to be removed from the house and stored in the leach fields. These fields will allow the materials to separate from the water so that the water can be relinquished into our environment. This test doesn't only improve the quality of life in your home, but it also allows the environment to extract the water and put it back into the natural cycle. So remember, never bypass this step, and always get a perc test before you close on buying a lot! - Anne
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Builder News The Times They are a Changing: What's Ahead for Home Loans in 2010
By You Magazine
January 2010
This year could bring significant changes from 2009 for those seeking home loans. Over the last year, home prices fell to 2003 and earlier levels in many parts of the country. In addition, home loan rates declined to the lowest levels on record and this combination led to the highest home affordability levels ever recorded. Here's a recap of what happened in 2009 and what you need to know for the year ahead.
Would You Like a Sweetener with that Rate?
Interest rates throughout 2009 were artificially low. That's because in late 2008, the Federal Reserve put into place a program for purchasing Mortgage Backed Securities with the intention of lowering mortgage rates. They were successful with reported rates by Freddie Mac falling below 5.00% several times in 2009.
Without this program mortgage rates would have been at least 1.00% higher, and potentially even higher than that. Did you know that a change of 1% in a home loan rate impacts the amount someone can borrow by roughly 10%? For example, if rates are in the low 5.00% range today and they shoot up to the low 6.00% range, $250,000 home buyers may become $225,000 home buyers.
Look for rates to return to 2008 and previous levels as the Fed ends the program on March 31, 2010. While rates will not immediately increase to 6.00% or higher, know that without additional intervention, rising rates are inevitable. Expect that under worst case scenarios, rates could dance around the 7.00% range.
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Start off the New Year with Classic Homes... Attend our "Home Building Seminar"

On January 28th, from 7 to 9 p.m., Classic Homes is hosting a "Home Building Seminar". Learn all about building on your lot including site work, permitting, construction financing, how to save on costs and more at this 90-minute informative seminar. Meet representatives
from Classic Homes, including project managers, finance officers and more to
enhance your understanding of the building process. Refreshments will be served. Other Upcoming Events: February 19th - Hard Hat Tour
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Jamie's Picks of the Month
- Restaurants: Michael's Noodles in Rockville is the kind of place where a diner can
find someone to successfully translate all eight of its kitchen's
specials into English, and the food is worth straying from the comfort
of your neighborhood.
- Around Town: Camelot at Olney Theatre Center for the Arts - The production gets its sweep principally from the three lead
performers, who make room for their characters to change and grow -- in
the process underscoring the wonder and aching sadness in this very
human mythic tale.
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We hope you enjoyed the latest news and events from Classic Homes of Maryland. We look forward to hearing from you with questions and comments. Just send an inquiry/comment to info@classicmd.net.
Sincerely,
Classic Homes of Maryland
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