Considering Refinancing? Ask Yourself A Few Important Questions First

With interest rates dipping below 5 percent again on 30-year mortgages, you may be wondering if you should refinance your home. Ilyce Glink and Samuel Tamkin of real estate Web site ThinkGlink.com suggest asking yourself some critical questions before you take the plunge:

Will you lower your interest rate? You want to lower the rate enough that it makes doing the refinance worthwhile.

Will you lower your monthly payment? You’ll need to know what a new interest rate and term will cost you each month, and how much savings will go back in your pocket each month.

Will you shorten your loan term? Say Glick and Tamkin: “This is an important question because if you have 25 years left on your loan and are starting up with another 30-year loan, you've essentially lost five years of payments. But if you have 25 years left and can refinance to a 15-year mortgage, you'll come out ahead.”

And finally, what fees will you incur from your lender to do the refinance? If it takes years of monthly savings to make up for the fees you pay upfront, the refinance may not be worthwhile for you.

Glink and Tamkin say that the biggest of these four issues is how much time remains on your loan: “If your monthly payment is less with a 15-year loan, and you can use that savings to prepay the loan, then you know you're making a smart move,” they say. “But it isn't really fair to compare monthly payments when a new loan is going to add years of payments. You must also compare what the costs are to close the loan.”

Glick and Tamkin suggest the best way to lower the costs on a refinance is “to shop around. Talk to at least four or five types of lenders: a credit union (if you belong to one or can join one); a big-box lender (such as Sun Trust, Wells Fargo or Bank of America); a local mortgage broker; an Internet lender (such as ING Direct) or a mortgage aggregator; and a small, local bank that might keep loans in its own investment portfolio.”

Also, they suggest, be sure to get a free copy of your credit history at http://www.annualcreditreport.com. They further suggest that you may want to purchase a copy of your credit score as well.

For more information, visit www.thinkglink.com.

The Aftermath of Snow and Ice That Can Drive You To A Meltdown

It’s been a record-breaking winter for many parts of the country, and as all of that snow and ice begins to melt from rooftops and overhangs, forming fang-like icicles along gutters and dropping icy cold dollops on unsuspecting folks as they come and go, some homeowners are discovering the drip-drip-dripping isn’t just happening outside their homes. 

Germantown, Md.’s Scott Davidson learned the hard way about ice damming a few years ago after a heavy snowfall. “We woke up one morning to find a wet spot had formed on our master bedroom ceiling. It turned out we had ice dammed up there and water had seeped in,” he said. “The downspouts were tubes of solid ice.”

This time, when a record snowstorm hit the area, Davidson followed the advice he’d received from a professional following his leaky ceiling episode and took some precautionary steps. He went out and cleared the snow away from his home’s downspouts, foundation and heat pump, and he heaved it out of his walk-up basement stairwell and basement window wells.

But many homeowners don’t have prior experience to rely on and now are finding water dripping from windows, ceilings and around light fixtures.

A recent blog on washingtonpost.com suggested:

Inside, if water is streaming down the walls, [said Alan Beal, president of Mid-Atlantic Inspection Services in Bethesda, Md.] use a screwdriver to poke a hole or two in the ceiling so that water drains out.

"Water inside your house is never a good thing," said Bill Millholland, executive vice president of Case Design/Remodeling in Bethesda. "There is no easy remedy for it."

Although many people are concerned about the weight of the snow on their roofs, Millholland said, in general, roofs are engineered to handle snow accumulations. It's not worth the risk to attack the snow on them. "People are freaked out their roofs will collapse. It is very unlikely to be an issue, especially now that we are through the worst of it," he said. "It's easier to fix a broken gutter than a broken bone.”

As for Scott Davidson: “So far, so good,” he says. “Every day I see more and more of my roof as the snow melts, so I’m keeping my fingers crossed.”

Wind Power On Your Rooftop?

Here is an interesting product that came out of the 2010 International Builder’s Show – a wind turbine that mounts directly on the roof of your home. As more and more homeowners turn to clean energy sources to reduce their energy consumption and lower their electricity bills, Honeywell has introduced a rooftop wind turbine that Popular Mechanics magazine calls one of the "10 most brilliant products of 2009.”

The six-foot turbine, which resembles an oversized bicycle wheel with blades attached to its spokes, can be installed on the roof of wood-framed homes and can generate electricity in wind speeds as low as 2 mph. Technology has also made the turbine quieter and less prone to vibration, which were two of the major roadblocks to residential use. Honeywell estimates the turbine would provide “18% of an average household’s (DOE) energy needs.”

The $8,000-$9,000 estimated pricetag (including installation) could be offset by federal and state tax credits and rebates. For more information, visit www.ownyourwind.com.