Mortgage Rates Rising in 2014

You’ve likely seen the signs in your neighborhood of the market returning to stability. There are less for-sale houses, your neighbors are refinancing due to historically low interest rates, and some are even finally able to check items off renovation lists. While this apparent boom in activity seems fantastic, in reality, it’s not all positive.

In June of 2013, the federal government announced intentions to eventually pull back on monetary easing, which caused an artificial spike in interest rates. While they are still “historically low” compared to 15 or even 10 years ago, over the past six months, interest rates have risen drastically—at times upwards of 1 percent. While this change will cause our economy to move in the right direction, it will only cause interest rates to increase.

This change is upon us. Starting in January of 2014, the federal government began pulling back investments in securities, and will continue to do sto the tune of $10 billion per month.

With the decrease in government funded securities and increase in interest rates, states with large residential markets began to realize immediate effects. Suppliers have now taken the opportunity to raise costs to recoup from the past five-plus years they’ve spent barely keeping their heads above the water.

These costs have started to trickle into neighboring states and will soon be the norm nationwide. What does this mean for homebuilders? It means an increased cost of doing business, and in turn, increased home values.

Over the next six to nine months, you have the opportunity of a lifetime to do what you’ve always dreamed of: building your own home. While interest rates are on the rise (up about 1 percent from 3.35 – 4.5 percent), they are still low in the mid-four percentile. It’s the perfect time.

New Year’s Resolutions for Your Home

What are your New Year’s Resolutions for 2014? Planning to lose some weight? Perhaps visit family more often? Donate your time to charity? These are all great resolutions, but don’t forget about your home!

A recent article on HGTV cited five great resolutions for your home, and we just had to share them:

1.  Streamline the stuff. We all become subject to a little clutter, especially after the holiday months – so why not declutter your home in the New Year? By scheduling regular purgings of your cabinets, basement bins, and under the bed crevasses (don’t deny it!), you’ll be able to live a cleaner, more organized life. Imagine being able to find that thing you were looking for, without having to spend an hour looking for it.

2.  Make it safe and sound. Now that you’ve worked hard to declutter your home, it’s time to make sure it’s a safe place to live. Maybe it’s time to replace fire and CO2 alarm batteries. Also, did you know lint backed up in your dryer could be a fire hazard?

3.  Shrink your bills. It doesn’t take much to lower your energy bills each year, so start with some of these easy to employ tips:

          a. Install fluorescent bulbs

          b. (Unless you suffer from outdoor allergies) dry some of your clothes outside on a line

          c. Turn off power strips during the day

          d. Switch off lights when you leave a room

          e. Give composting a try

4.  Work out a weekly system for keeping your house clean. This is one of our favorites, because it’s an easy way to give everyone in your home a share of the duties in keeping your house clean and wonderful. Throw dishes in the dishwasher every night, put dirty clothes in hampers and not on the floor, and hang clean clothes in the closet every night. On a weekly basis, try focusing on one type of cleaning each week. Maybe one week it’s fingerprints on surfaces, and the next it’s windows and mirrors. Remember – divide and conquer!

5.  Get your place ready for entertaining! So maybe you did decide spending more time with family is on your resolution to-do list – so how about having them over more to your own humble abode? Even the smallest upgrades can make your home feel more inviting, such as a fresh coat of paint, adding a few plants to keep the air fresh, and rearranging furniture to be more conducive to conversation.

Going Away for the Holidays?

The holidays are busy times with many parties to go to, family members to see and even some vacations during the break. If you’re planning to leave your home for any longer than a day, here are some tips to make sure you come home to the same beautiful abode you left:

Set your heat between 50 and 60 degrees. This will help keep the house warm and protect your pipes.

Use random-access timers for lights to make it seem as if you are home. Try to avoid automated lamps, as these are more likely to cause a fire.

Lower the temperature in your water tank to reduce electricity running to warm it, and shut off water supply to toilets and any upstairs water supplies. This will help in the event a pipe bursts – no one wants a flood, especially a second-floor flood.

Unplug all unnecessary electronics like televisions and computers, as well as some kitchen appliances like coffee makers and microwaves. They will continue to drain energy even if you’re not using them.

Canceling newspaper and mail services can help elevate overloaded mailboxes – which also hint to your absence.

Give your neighbor access to your home and make sure they have contact information for where you’ll be staying. They can alert you if something has happened, or can easily check in on your home to make sure all is well.

As always – Faber wishes you and your family a safe and happy Holiday!

Energy Efficient Winter Home

Even the most energy efficient home can still see higher electric and gas bills in the winter months – it’s inevitable.  To keep your home running efficiently, try some tips from our quick list!

1. Replace your furnace filter. Seems like an easy one, but a clogged filter can restrict airflow and increase energy use in your home. Replacing the filter once a month can really reduce your winter heating costs.

2. Keeping shades and drapes open during the day will allow you to take advantage of the sun’s warmth and allow for a more efficient system. Close them at night to keep the heat in – as 25% of your heating bill each month can often be attributed to heat lost through your windows.

3. If you’re in the market for new appliances – choose Energy Star-certified products. They’re made with advanced technologies that use 10-15% less energy and water than older models.

4. Schedule seasonal maintenance on HVAC systems to be sure they’re in proper working order. If you run a fireplace, have your chimney swept, too!

5. Weather stripping. Run weather strips along doorways and large windows. You’d be surprised how much cold air can seep through even the strongest doors and windows. Don’t forget your sliding glass doors!

Winter Home Preparedness

Top 10 Winter Home Preparedness Tips

It happens every year, and no matter how long you mentally prepare for it, it still catches you off-guard. You guessed it: the first snowfall.

There could be just a dusting of snow on the ground and the kids are already grabbing their snow boots and gear. Before everyone heads out to enjoy the weather, though, make sure your home and family are prepared for Ol’ Man Winter with these top 10 tips:

1. Buy a snow shovel, or two – keep sidewalks and front steps clear so no one slips and falls. The more shovels you have the more help you can recruit to get the job done.

2. Stock up on de-icing compound – after shoveling, throw down a layer of de-icer and reapply after each snowfall. There are some great pet safe brands like: Safe Paw, Morton Safe-T-Pet, and Pet Guard.

3. Pull out the waterproof floor mats – you don’t want to bring in the wetness, which can then cause mold build-up in your home.

4. If you have a chimney, call the chimney sweep – burning wood releases volatile gasses that cool and condense on the inside of your chimney, forming a highly flammable creosote – which puts you at a big risk of a chimney fire.

5. Put your ceiling fan in reverse – warm air rises, and if your fan is moving clockwise, the rotation of the blades forces warm air down – keeping you warm.

6. Wash those windows – washing your windows twice per year will reward you with a sparkling view of the outdoors, and allow you the opportunity to check for cracks and damaged caulking. Fix these issues before the temperature drops too low.

7. While you’re working on cleaning your windows, apply some weather stripping. According to the U.S. Department of Energy, 10 percent of the air that leaks out of a house exits through the windows. 

8. Get out there and clean out your gutters – fallen leaves and debris can pile up and cause backups in your drainage.

9. Don’t forget about your smoke alarms and carbon monoxide detectors – replace batteries now and have a stockpile ready in case you get snowed-in and/or lose power.

10. Have your furnace inspected – you could still have power and be snowed-in, so be sure your furnace is in proper working order. Routinely vacuuming out dust and debris and changing your filter will help keep your furnace in tip-top shape.

Also, we’d be remiss if we did not share these basic indoor emergency kit essentials:

·         Food that doesn’t require heating or refrigeration (canned meats, soups and stews, cereal and energy bars are a good start)

·         Paper plates, cups and cutlery

·         1 gallon of water per person per day (1-5 days is a good start)

·         First aid kit

·         Plenty of blankets and cold-weather clothing for all family members

·         And don’t forget your four-legged family members – stock up on extra water and food for Sparky, too!