Q: What’s the difference between a mortgagees policy and a lender’s policy?
A: There is no difference. Essentially a policy provided to a lender insures the validity and priority of the lien insured. In Texas, that is now called a Loan Policy. Prior to 2008, the Texas form was called a Mortgagee Policy of Title Insurance. The form and name were changed in 2008 by the Texas Department of Insurance that promulgates all title insurance forms used in Texas, so that the coverage and name more closely tract those forms widely used across the United States called the ALTA (stands for American Land Title Association) policies. The Loan Policy is often issued simultaneously with an Owner’s Policy when the transaction is a purchase. Issued simultaneously in the same transaction, the premium (charge) for the Loan Policy and Owner’s Policy is greatly reduced and is always the “best deal” for the consumer.
Everywhere you look, people are talking about going “green,” but what exactly does this mean? As the environmentally friendly building trend grows, more builders are offering “green” options to their customers. As many homeowners are unsure what they need to make their homes more energy efficient, groups such as Austin Energy have offered tips as to what should be used or added to a home when building or remodeling to meet these green standards.
When building a new home, plans for going green start with things as basic as the positioning of the structure. An east-west axis will reduce energy usage, on its own. Choice of materials and features also plays a role in the energy rating of a home. Use spray foam insulation, rather than standard fiberglass and choose energy efficient doors and windows.
When purchasing a cooling system for a new home or as a replacement, be sure that the model is energy efficient. Lighting should be fluorescent, particularly in high use areas. Add ceiling fans to common rooms, bedrooms, baths and kitchens. Choose a light color for the exterior of the home and have interior rooms painted colors that make the best use of natural light. Experts also suggest that the structure of the home be built from sustainable materials to further help the environment.
Though many of these building choices are more expensive initially, the energy savings and environmental impact is well worth the expense. Even if going completely green is not financially possible, even the smallest improvements will be a help to your personal energy usage and to the environment.
A look at your bank account followed by a dreamy walk through the mall or an examination of a travel brochure, may inspire you to start saving some money. You’ll list your options in your head, determining what is feasible and what is not. When you think of refinancing, you’ll think “why not?” The rates are lower than they have been in years. Refinancing could save you money and secure you a great deal. Before you rush to your lender, know that your reasons for refinancing are far from advisable.You should never refinance so that you can go on a trip, buy a new bag or pair of shoes, or even secure a tax deduction. You should refinance so that you can get out of debt, pay off your credit cards or avoid going default on a loan. If one of those is your reason, the decision to refinance is easy. You should act immediately and get into a fixed-rate program while the rates are down.
Unfortunately, the process isn’t always as easy as the decision. A zero-cost refinance is the most desirable, but it won’t always secure you the best rates. If your home has been listed for sale before, lenders may not be willing to refinance it at all. Thus what you have to do, as with anything, is plan. Determine first if you should refinance and if you can do so without lengthening your loan; then figure out who and what will put you in the best program. How can you save money in the long run? That’s the most important question. You want not a pair of shoes but the ability to stay above the water should the economy falter and refinancing can help you do that, if you go into it with the right motivation.
Anderson Windows, makers of fine doors and windows, want you to have control. Anderson’s Web site features an interactive design tool called Window Centers Wall Planner where anyone building or remodeling a home can design their own ‘wall of windows’. The budding designer can choose between several design and layout options, position and reposition their choices until they’re just right, then print out the result for a consultation with their builder or architect.
Anderson also has a tutorial for the home owner that outlines all the elements that go into window design and placement. Among those things to take into consideration are the source of natural light, ventilation choices, the view, and the shapes of the windows. The site includes a photo gallery of several different rooms and how windows enhance the atmosphere as well as pictures of their art glass line to inspire the home owner.
The design tool allows the user to visualize several different shapes, styles and colors before settling on a plan that can be saved as a .pdf that, Anderson advises, should be reviewed by a professional builder or architect. The home owner can even add furniture, plants and people to get a full visual representation of their dream room or home.
Anderson is one of the nation’s most well known and well made line of windows and doors and now offers the lowly home owner the same computer-aided design tool used by many professionals to bring his or her own custom designed vision first to paper and then to life.
Curb appeal is much more than just the appearance of the house. Curb appeal includes the landscaping that frames the house as well. This would encompass, not only the driveway, sidewalks and lawn, but the flower beds, trees, and other plantings that surround and create a setting for the house.
As outlined in an article in the Realty Times, a potential buyer is influenced as much by the landscaping of a property as the house itself and well-planned plantings can raise the value of a home as much as 11 percent. As spring approaches, and the market warms along with the weather, sellers would do well to take stock of their landscaping choices. Curved flowerbeds, bright annuals, and a variety of plants can add to the appeal.
With abundant and diverse plantings, though, comes a caution. Landscapers should take care to avoid attracting unwanted pests such as termites and ants. Mulched flower beds need a concrete barrier between the bed and the house to guard against infestation. An eye toward how the elements work together overall is important, as well as the health and placement of shrubs and trees. For example, willows are notorious for invading septic or sewer systems as their roots naturally seek out plentiful sources of water.
Maintaining the landscape is a high priority in contributing to healthy plantings. Tree limbs need to be pruned, grass mowed, weeds kept under control. This not only reduces the chances of insect and vermin infestation, but contributes to a higher curb appeal and consequently to a higher price for your home.
Considering the epidemic of home foreclosures, now would be a good time to step back and take honest stock of whether you are financially ready to take on this responsibility. Freddie Mac has guidelines to help you in determining your ability to purchase and maintain your own home.
First and foremost is the purchase price. Chances are, unless you’re independently wealthy, you will need a mortgage. Most responsible lenders want to be sure you have a steady income enough to pay the mortgage, plus interest, and - in most cases - the escrow required for property taxes. Then, you have closing costs that will include the down payment, financing fees, title search, and any other costs you agreed to pay as part of the purchase negotiations. And this is just the beginning.
You’ll need to furnish the house, heat and/or cool it, run appliances, use water, and have enough left over to repair or maintain the various systems and parts of your home. Owning a house may entail a lifestyle change: less dining out, fewer expensive vacations, buying your groceries at the discount supermarket instead of the gourmet take-out place.
Though the costs may seem intimidating, home ownership has many long-run advantages. At the top of the list is it’s yours. You have an asset that will probably increase in value, as long as you keep up with the maintenance. Next is the savings. You often pay less on a mortgage than you would for rent and it’s entirely possible your federal income taxes will be reduced. Interest on a home mortgage and property taxes can be deducted from your yearly tax return. And, in the end, provided you’ve planned well, you own a piece of the American Dream.
There is a lot of work involved in protecting your investment in real estate but, it is probably worth it. The Texas State Government pages have some suggestions on how to go about making sure your property taxes remain reasonable.
Obtain a homestead exemption that will decrease the amount of property value that can be taxed. There are two simple requirements for this: you must own the home and it must be your primary residence. You qualify for additional exemptions if you are 65 or older, have a disability such as blindness, are a disabled veteran or the surviving spouse or child of a veteran.
Specific exemptions include a $15,000 exemption for school taxes, $3,000 for county taxes if the county collects for flood control or farm to market road taxes. In addition, homeowners 65 years or older receive $10,000 over and above the $15,000 exemption offered to all homeowners. Homeowners with disabilities receive the same $10,000 over the $15,000 exemption. Exemptions for veterans or their surviving family members range from $5,000 to $12,000 depending on the severity of disability.
To file an exemption on your home, you must obtain an exemption form from the local appraisal district office. The form must be filed between January 1 and April 30. Documentation may be required for the 65+ or veteran disability exemptions: make sure you have proof of your claims.
If you purchase and move into a new home, or if your circumstances change, you will have to file a new application for the new situation. If you turn 65, you have up to one year from your birth date to file for exemption. The chief appraiser may require a new application and will notify the homeowner by written notice along with an application.
You are tired of renting, of landlords and of yearlong leases. You want something permanent. You want to purchase a property. However, you don’t want an entire house. That would be too much - too much space, too much money, just too much. As such, you are left with two options: a condo or a co-op.
A condo would mean that you own essentially four walls. You own a unit within an apartment complex. You would hold the title and be responsible for all that was inside of it. Any replacements or repairs would fall to you. When the fridge broke, you would be the one at Home Depot, not your landlord or an unknown corporate head. But you would also pay a monthly fee to the complex, which would cover some maintenance, possibly a few utilities and other odds and ends such as garbage removal.
In a co-op, on the other hand, you would be a part of a multi-family dwelling unit. Rather than owning just the space you lived in, you would have a share in the entire project. You would be a part of a corporation. The monthly fee you paid would encompass not just utilities and grounds upkeep but appliances and inside maintenance as well. Taxes would be handled by the co-op, taken from your monthly fee.
Both options have their benefits. Both have their limitations. What you should choose depends on what you are looking for. If you want an ownership in which you are solely responsible, look for a condo. If you want a more community-like experience, try a co-op. One or the other should meet your needs and give you the satisfaction of ownership.
The three-day seminar was hosted by AgriLife Extension, a division of the Texas A&M System, and underwritten by a grant from the US Department of Agriculture. The seminar attendees included not only engineers, builders and architects, but entomologists and pest management experts. Several solutions were discussed, including such simple ideas as screening gaps, sealing conduits for electrical and sewer hook-ups, and creating smaller window ledges that won’t accommodate perching birds.
The focus was to come up with ideas that would eliminate the need for chemical pesticides and poisons, that could easily be incorporated into an environmentally friendly building and qualify for certification under the Leadership in Energy Environmental Design (LEED) system.
Seminar attendees took a break from the discussions to tour Hector Garcia Middle School, a near-by green building designed by Perkins and Will. Keeping the typically tight school budget in mind, the designers opted to use the natural environment to advantage. The building features walls of windows and open spaces, classrooms and labs situated in order to utilize the natural northern light. Exposure to the east and west sun is minimized, lowering the need for indoor cooling.
In spite of the care taken with design and location of specific features at the school, though, mice are an acknowledged problem, apparently entering the building at a gap below some doors, and provided a clear example that the problem of pest management should indeed be addressed during a green building’s design.
