The summer heat has come upon us. Not as hot as last year but still hot. Why is it that we can have such cold in the winter and such heat in the summer and grass and trees and birds and bees survive? Whey do some aviarial creatures fly south for the winter and return for the summer. If they fly to the tropic areas why do they come back here? Can't they just stay there?
Well, if you are a victim of the heat you could get a high efficient Air conditioning unit. We are exploring the possibility of getting a photovoltaic panel that would be used for running the air conditioner only. That way if there is enough sunlight, (heat) it will run the A/C and if it is cloudy (not hot) then it would not run the A/C. It is unknown if this is feasible but we are investigating.
Meanwhile, just to remind you all, we do mortgages that you can afford, and home improvements that you can also afford with unsurpassed quality.
Tuesday, July 29, 2008
Monday, July 28, 2008
How to choose the best home improvement project
First, determine if the project is necessary or just something you want to do. Then you should figure out if it is just a maintenance project or is it project that will enhance the value of your home. Do you know the difference?
Most projects fall into the maintenance category. Painting or putting on wall paper does not increase the value of the property, just maintains its value the same is true for a new roof or driveway sealer.
Finishing a basement sometimes adds value but generally just makes your home more attractive to a buyer. Adding a bathroom to the basement remodel WILL increase the value but not always dollar for dollar. It varies from neighborhood to neighborhood what that value will be. If your home is in a depressed market area anything you can do to enhance the value may not be reflected at all.
Does this mean you shouldn't do the basement remodel?
Not at all. It just means that you should be realistic as to what you can accomplish in terms of value of the home. Don't buy a thousand dollar chandelier for a home in a depressed market area for example. Don't add a patio if you don't think you will ever go outside and sit on it. My neighbor spent a small fortune on their deck but I have only seen them on it a few times in the last four years.
I call it the I BOUGHT A BOAT syndrome. I know a guy that bought a boat that cost him about 20 grand. It sits on its trailer in the back of the driveway 358 days a year because he has to work two jobs to make the payments.
Don't buy a boat if you aren't retired with money enough to use it. Don't build more than your house needs.
Don't use the re-modeler that advertises big in the yellow pages or on the radio because he has to charge more to you to pay for those. Use a medium to small company with a modest ad or even no ad in the yellow pages. That is a thrifty company, which means they will save YOU money.
Most people tell you to get three estimates for the work and that is a good idea. But if you use my service, I will get three estimates for you and I will present you with the best. (not always the lowest depending on the skill level of the technician).
If you don't know if a desired project will enhance the value of your home, ask me, I probably know. So call today or email me with your questions or just post them here.
You never know, it might be a smart move!!!
314 731 4899
Most projects fall into the maintenance category. Painting or putting on wall paper does not increase the value of the property, just maintains its value the same is true for a new roof or driveway sealer.
Finishing a basement sometimes adds value but generally just makes your home more attractive to a buyer. Adding a bathroom to the basement remodel WILL increase the value but not always dollar for dollar. It varies from neighborhood to neighborhood what that value will be. If your home is in a depressed market area anything you can do to enhance the value may not be reflected at all.
Does this mean you shouldn't do the basement remodel?
Not at all. It just means that you should be realistic as to what you can accomplish in terms of value of the home. Don't buy a thousand dollar chandelier for a home in a depressed market area for example. Don't add a patio if you don't think you will ever go outside and sit on it. My neighbor spent a small fortune on their deck but I have only seen them on it a few times in the last four years.
I call it the I BOUGHT A BOAT syndrome. I know a guy that bought a boat that cost him about 20 grand. It sits on its trailer in the back of the driveway 358 days a year because he has to work two jobs to make the payments.
Don't buy a boat if you aren't retired with money enough to use it. Don't build more than your house needs.
Don't use the re-modeler that advertises big in the yellow pages or on the radio because he has to charge more to you to pay for those. Use a medium to small company with a modest ad or even no ad in the yellow pages. That is a thrifty company, which means they will save YOU money.
Most people tell you to get three estimates for the work and that is a good idea. But if you use my service, I will get three estimates for you and I will present you with the best. (not always the lowest depending on the skill level of the technician).
If you don't know if a desired project will enhance the value of your home, ask me, I probably know. So call today or email me with your questions or just post them here.
You never know, it might be a smart move!!!
314 731 4899
Wednesday, January 30, 2008
Which way does the wind blow?
It is often said that some people change with the direction of the wind. Well it is time to tie down the tent because the wind is blowing all directions when it comes to the economy and the housing market.
Whether you are a home owner that needs money for improvement, or looking to become one or trying to help a loved one become one, the wind is never settled for you. It is because you have to make a decision (get on board with one or another direction) as to whether to refinance, repair, improve or get cash out of the equity to buy a car etc. that you have to make a stand.
So why not come to us at AAA In Service? We do all of the above (except buy a car etc. for you).
So call us we have qualified people that can help you with whatever you want to do.
Visit our website at www.aaa-in-service.com we'll be glad to help!!!
Whether you are a home owner that needs money for improvement, or looking to become one or trying to help a loved one become one, the wind is never settled for you. It is because you have to make a decision (get on board with one or another direction) as to whether to refinance, repair, improve or get cash out of the equity to buy a car etc. that you have to make a stand.
So why not come to us at AAA In Service? We do all of the above (except buy a car etc. for you).
So call us we have qualified people that can help you with whatever you want to do.
Visit our website at www.aaa-in-service.com we'll be glad to help!!!
Wednesday, January 23, 2008
Whoa Nellie.. or Stop the Falling Market!!!!
It would seem that now is not the time to buy stocks. This may be true but I am not a stock analyst or soothsayer so I can not tell you. But I do know that if you own a home and want to improve it. Now is a good time to do so.
We do home improvements and mortgages and I can tell you that there aren't many mortgages out there. But if you have a good credit score and a high interest rate mortgage, now is the time to act. The Fed has lowered the overnight funds rate and this usually is reflected in the mortgage rate. It shouldn't but it does.
If you don't need to refinance for rate but do wish to get some money to do some improvement, this is also a good time to do that as well.
If you have the money to do the repairs now, the cold weather, is the best time to get them done. I saw on the television and heard on the radio that some of the high profile companies are offering deep discounts for home improvements because of the cold weather. We don't offer discounts because we are already less expensive than those companies even after their "discounts".
The crashing stock markets and the 'subprime mortgage crisis' is not going to affect your home or the value of your home in the long term so rather than try to sell your home with the 'depressed market' fix it up, and in a few months or so (probably after the elections) you can sell it then. Because regardless of who wins the elections we will have a different President, and Congress and when that is 'settled' things will return to some semblance of normalcy.
Also take notice, that since we have been doing mortgages since 1989 we have a fair idea of the value of your home and we will inform you if the home improvement you wish will be an increase of asset or an over kill for the neighborhood. What do I mean by this? I will explain.
If the assessor says your home is worth $100,000 and you want to add a room 14x15 or so how much will the value of your home go up? If you look at other houses in your immediate neighborhood and the houses with the "new" number of rooms and square feet you add are not increased by the cost amount of the "new" addition, then it probably is not a wise move.
Remember though that things that are done as 'maintenance' do not always add value. In other words, a roof repair or replacement just 'maintains' the current value. Adding a bathroom adds value, usually to the home about twice what the cost of installing it, but re-tiling the floor or fixing a leak often will add nothing to it.
You may choose to do the addition or improvement anyway and that will be good too because over five to seven years the value should catch up with the improvement even with the current problems in the real estate market. Nothing lasts forever and this market will change too.
So don't panic, but do act if you need anything for your home because there is no better time than now.
We do home improvements and mortgages and I can tell you that there aren't many mortgages out there. But if you have a good credit score and a high interest rate mortgage, now is the time to act. The Fed has lowered the overnight funds rate and this usually is reflected in the mortgage rate. It shouldn't but it does.
If you don't need to refinance for rate but do wish to get some money to do some improvement, this is also a good time to do that as well.
If you have the money to do the repairs now, the cold weather, is the best time to get them done. I saw on the television and heard on the radio that some of the high profile companies are offering deep discounts for home improvements because of the cold weather. We don't offer discounts because we are already less expensive than those companies even after their "discounts".
The crashing stock markets and the 'subprime mortgage crisis' is not going to affect your home or the value of your home in the long term so rather than try to sell your home with the 'depressed market' fix it up, and in a few months or so (probably after the elections) you can sell it then. Because regardless of who wins the elections we will have a different President, and Congress and when that is 'settled' things will return to some semblance of normalcy.
Also take notice, that since we have been doing mortgages since 1989 we have a fair idea of the value of your home and we will inform you if the home improvement you wish will be an increase of asset or an over kill for the neighborhood. What do I mean by this? I will explain.
If the assessor says your home is worth $100,000 and you want to add a room 14x15 or so how much will the value of your home go up? If you look at other houses in your immediate neighborhood and the houses with the "new" number of rooms and square feet you add are not increased by the cost amount of the "new" addition, then it probably is not a wise move.
Remember though that things that are done as 'maintenance' do not always add value. In other words, a roof repair or replacement just 'maintains' the current value. Adding a bathroom adds value, usually to the home about twice what the cost of installing it, but re-tiling the floor or fixing a leak often will add nothing to it.
You may choose to do the addition or improvement anyway and that will be good too because over five to seven years the value should catch up with the improvement even with the current problems in the real estate market. Nothing lasts forever and this market will change too.
So don't panic, but do act if you need anything for your home because there is no better time than now.
Wednesday, January 9, 2008
Subprime loan woes will ruin everyones good day.
The slogan for all of the candidates for public office from dogcatcher to President of the United States should be the same one used in the past. Maybe you remember it.
IT'S THE ECONOMY, STUPID!!!!
Because it is the economy that will determine the next political trend. The next congress and president will have to stop the bleeding that is going to start a.k.a. recession. Just today a major investment analysis company has stated that the second or third quarters of this year will reflect recessionist numbers.
Soon there will be no advantage for anyone to get a loan through a mortgage broker. The powers that be seem to think that Yield Spread Premiums which are paid to the brokers were the reason for the 'credit crisis' and the 'subprime meltdown'. Nothing could be further from the truth. Unscrupulous practices by some mortgage broker employees and borrowers caused the 'problems'.
But why did those problems occur? There are several reasons.
1) Greed. Loan officers were told by their brokerage managers that they can make as much as they want and they loaded the interest rate up which increases the Yield Spread Premiums by as much as four or five percentage points. They were also charging 'origination fees' and high processing fees. What kind of money would that be? Well, for a loan of $100,000 five percent in Yield Spread Premiums is $5,000 dollars plus a processing fee of $900 and Origination of two percent makes a profit of $7900 for one loan.
2)Fraud. Loan officers not able to make the numbers work for the borrower would make up numbers and even falsify documents to make the numbers work.
3)Untrained personnel. There is no national standard for training loan officers or brokers. NONE. There is no ethical training or guidelines either.
4)Borrowers impatience. Most borrowers don't want to spend the time reading the documents they have to sign at the origination of the loan and at the closing of that loan. If more had taken time to read the documents there would be less of a 'resetting interest rate' crisis.
The best thing we can do is to make sure that all of our legislators on every level know that Yield Spread Premiums are not the problem. Greed and training could solve most of the problems. The Yield Spread premium, used correctly, makes the cost to the borrower lower. There should be a cap on the amount of money charged to the borrower or seller in conjuntion with the Yield Spread Premium.
IT'S THE ECONOMY, STUPID!!!!
Because it is the economy that will determine the next political trend. The next congress and president will have to stop the bleeding that is going to start a.k.a. recession. Just today a major investment analysis company has stated that the second or third quarters of this year will reflect recessionist numbers.
Soon there will be no advantage for anyone to get a loan through a mortgage broker. The powers that be seem to think that Yield Spread Premiums which are paid to the brokers were the reason for the 'credit crisis' and the 'subprime meltdown'. Nothing could be further from the truth. Unscrupulous practices by some mortgage broker employees and borrowers caused the 'problems'.
But why did those problems occur? There are several reasons.
1) Greed. Loan officers were told by their brokerage managers that they can make as much as they want and they loaded the interest rate up which increases the Yield Spread Premiums by as much as four or five percentage points. They were also charging 'origination fees' and high processing fees. What kind of money would that be? Well, for a loan of $100,000 five percent in Yield Spread Premiums is $5,000 dollars plus a processing fee of $900 and Origination of two percent makes a profit of $7900 for one loan.
2)Fraud. Loan officers not able to make the numbers work for the borrower would make up numbers and even falsify documents to make the numbers work.
3)Untrained personnel. There is no national standard for training loan officers or brokers. NONE. There is no ethical training or guidelines either.
4)Borrowers impatience. Most borrowers don't want to spend the time reading the documents they have to sign at the origination of the loan and at the closing of that loan. If more had taken time to read the documents there would be less of a 'resetting interest rate' crisis.
The best thing we can do is to make sure that all of our legislators on every level know that Yield Spread Premiums are not the problem. Greed and training could solve most of the problems. The Yield Spread premium, used correctly, makes the cost to the borrower lower. There should be a cap on the amount of money charged to the borrower or seller in conjuntion with the Yield Spread Premium.
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