Fall Honey-do's

It's one of my favorite times of the year with the leafs changing color and the MLB playoffs in full swing. But, as the weather heads south on the thermometer, being a responsible home owner means prepping your home for the winter weather. Proper insulation and controlling air leaks will go a long way in reducing energy costs and improve your comfort.

Check out these links for tips on weatherizing/winterizing your home:
http://www.consumertipsreports.org/preparing_your_home_for_winter_weather.html
http://www.energysavers.gov/your_home/insulation_airsealing/index.cfm/mytopic=11220
http://www.cbsnews.com/stories/2002/11/12/earlyshow/living/supersavers/main529051.shtml

Wall Street Journal "10 Reasons To Buy a Home"

Great article on the positives of home ownership. Find it here

Bremerton-Silverdale Tops Moody's Forecast List For Strongest Housing Market By 2014

Click here to see the full list of top 10 housing markets that will be strongest by 2014. Here's a preview-Tacoma is projected to have a 33.1% growth rate.

Big Changes Coming To Housing Finance?

In the next few months federal policy makers will weigh wether there can be too much of a good thing when it come the helping families finance the American Dream. Learn more here from USAToday.com.

FHA Likely To Increase Annual Mortgage Insurance Premium

Last week FHA Commissioner Stevens announced changes to both the Up Front and Annual Mortgage Insurance Premiums charged on FHA loans (letter attached).  The specific changes and their impact are as follows:

1)      The Up Front Mortgage Insurance Premium (“UFMIP”) declines from 2.25% to 1.00%.

In a FHA transaction the UFMIP is typically financed and therefore any reduction in the UFMIP will benefit the borrower from a equity standpoint since the premium amount financed will be lower.

2)      The Annual Mortgage Insurance Premium increases from .55% to .85% or .90%. (to be finalized)

The Annual Mortgage Insurance Premium is expressed as an annual rate and is collected monthly with the mortgage payment.  The dollar amount of Annual Mortgage Insurance Premium is also factored into the total payment when qualifying the borrower.  The increase in the Annual Mortgage Insurance Premium will increase the total monthly cost of the loan and may impact the ability for some borrowers to qualify for a loan due to housing and or total payment ratios exceeding allowable guidelines.

It is important to note that the increase in the Annual Mortgage Insurance Premium will have an effect similar to an increase in interest rates of between .375% to .500%.

The above changes will go into effect for loans with FHA Case Numbers ordered on or after September 7, 2010.  (Note: FHA Case Numbers can only be ordered once a property has been identified).  It is important to understand that if you are looking to buy using FHA financing how the above changes will impact both the initial and ongoing costs and, in some cases, the borrower’s ability to qualify for FHA financing.

More information here at SmartMoney.com.

UPDATE: FHA announced that it will be delaying the rollout of the new MIP changes from September 7, 2010 to October 4, 2010

Best Winter Weather Locations

Seattle tops the Weather Channels list of best winter weather cities for 2009-10. Check out the details here.

Real Life "Up" House Is Having A Hard Time Getting Off The Ground

The 100+ year old bungalow style home previously owned by Edith Macefield, who turned down a $1 Million offer to sell her home to developers in Ballard is running into a few issues reaching new heights. The current owners want to raise the home to be 5 stories tall. To fund the project they are selling tiles between $250 and $1,000 but have had limited interest. The tiles would be displayed in the new building and would feature the purchasers name and credo. "Credo Square" as it is called would be open to the public during business hours and feature many plants and water features. Only a few tiles have been sold so the current owners are looking for additional funding from traditional lending institutions and private investors. Learn more about Edith's story here, the current project here and here.

Would you turn down a $1 Million offer like Edith? What do you think of the current plans for the home? What is your credo?