Remodeling

Exterior replacement projects are among the most cost-effective home improvement projects according to REALTORS® surveyed for National Association of  

Realtor, (NAR) 2010-11 Remodeling Cost vs. Value Report.

According to the report, nine of the top 10 most cost-effective projects nationally in terms of value recouped are exterior replacement projects. The steel entry door replacement remained the project that returned the most money, with an estimated 102.1 percent of cost recouped upon resale; it is also the only project in this year's report that is expected to return more than the cost. The midrange garage door replacement, a new addition to the report this year, is expected to recoup 83.9 percent of costs. Both projects are small investments that cost little more than $1,200 each, on average. REALTORS® identified these two replacements as projects that can significantly improve a home's curb appeal.

The top interior projects for resale value are kitchen and bathroom remodels. Both improve the living space without extending the footprint of the house. The average bathroom remodel cost about $16,000 and recoups an estimated 74.6 percent. A minor kitchen remodel cost about $23,00 and recoups an estimated 79.5%,upon resale.  

Improvement projects that are expected to return the least are a mid-range home  is an office remodel, recouping an estimated 45.8 percent; and a sunroom addition, recouping only 48.6 percent of costs.

Source: NAR 

Understanding the Subordination
of a Second Mortgage

To subordinate a home loan means that a lender holding a primary lien requests a junior lien lender to stay in subordinate position while the primary lien holder is restructuring (refinancing) their lien.

For example, if you have a first mortgage and you wish to refinance it without paying off the existing second mortgage or line of credit you also have. The second lien holder has the right to move into first lien position if:

• The first mortgage refinance does not pay off the existing second lien or home equity loan or line of credit;
• No subordination request is made from the part of the primary lien holder to the second mortgage holder to remain in junior position while the refinancing is over.

Subordinating your home equity loan will keep it open and available while refinancing your first mortgage, and maintain lower home equity rate; also, subordination fees are much smaller than the costs of opening a new line of credit, once closed.

Source: MarketWatch 

Home Buyers "Shopping List" 

Before you embark on your search for the perfect dream house, it is important that you make a realistic "shopping list" in an attempt to narrow your choices of properties. Hunting for a home can be a time consuming process, especially if you have not determined in advance the parameters of your search.  

Many home buyers make the mistake of misinterpreting a WANT as a NEED. As a result, they often dismiss homes that perfectly fit their needs in search for one that has their wants. This is not to say that you cannot have what you desire in your home--just that you must be able to differentiate between what you truly need and what you would like to have. Your budget must be the determining factor here, not a "wish list."  

Take a few minutes to develop your own list of NEEDS and WANTS. The goal is to put the emphasis on finding a house that includes all of your needs and as many of your wants as is practical--yet remains in your budget. Once you have a clearer view of what your house will need to have, the next step, actually looking for a home, will be a great deal easier!