Sound Mortgage Planning Blog

If you own a TV, read newspaper or opened a magazine, you have more than likely heard of the Green movement. Never before have we seen this level of social and environmental consciousness. Of course, most all of us want to do our part in one way or another, or we at least want to learn what can be done. You can easily find over 1,000,000 web pages on the internet dedicated to informing the masses of how to “live green.” Well, here is one more page that can be added to the list.

Here are some simple steps you can take that will help improve the environment:

The Yard

· Cut your grass no shorter that 2-1/2 inches. Cutting it lower than that will require increased watering.

· Try to water your lawn during the coolest times of the day. Before sunrise and after sunset will mean less evaporation, less watering time and more efficient water usage.

· Don’t bag your clippings. Using a mulching mower is a much healthier alternative for your lawn.

· Use an electric mower or even better, use a reel mower. Not only will you not be putting hydrocarbons in the air, you will be getting a great work-out! FYI: The average gas mower emits, in one hour, the same amount of hydrocarbons in the air as a 1992 Ford Explorer emits in over 23,600 miles!

· Use organic fertilizers. They don’t degrade as rapidly as synthetic fertilizers and are safer for children and animals.

The Fridge

· Use cold instead of hot water when washing your clothes. When drying your laundry, it is more energy-efficient to dry loads of laundry consecutively, due to taking advantage of the residual heat in the dryer.

· Gas ranges are more efficient than electric ranges.

· An energy-efficient dishwasher is more “green” than hand-washing a sink full of dirty dishes.

· Always look for the Energy Star label when buying new appliances. They may cost a little more, but it will save money and the environment.

· If your refrigerator is 10 to 20 years old, you should replace it. An older refrigerator may be 40% less efficient than newer models.

· Side-by-side refrigerators use 10% to 20% more energy than stacked refrigerator/freezer models.

· The location of your refrigerator can make a difference too. Placing your refrigerator near heat sources such as a vent, dishwasher, oven, or in direct light, will require more energy to cool it.

Lights

· CFLs, also known as Compact Fluorescent Lights, reduce the amount of energy used for lighting by one-third. Many CFLs provide the same glow as an incandescent light bulb and will save you as much as $20 to $30 per bulb in energy costs.

Bill: H.R. 5153

• Sponsored By: Rep. Paul Kanjorski (D-PA)
• Introduced: January 29, 2008
• Scheduled for Debate: TBD
• Voted on in House: TBD
• Voted on in Senate: TBD
• Signed by President TBD

The bill H.R. 5153 has been introduced and is intended to provide relief to those homeowners whose loan amounts are higher than the current conforming loan limit of $417,000 in current High Cost areas.

For the most part, this is a step in the right direction. However, there are questions regarding how this will actually affect homeowners and homebuyers. Currently, HUD has not released the 2008 median home price by metropolitan area.

One question that I receive is, “what will the new conforming loan limit be?” Since HUD has not released the new median house prices, I can only go by what was known as of 4^th quarter 2007 and published by the National Association of Realtors (NAR). For Washington State, where I originate loans, the median house prices were reported as:

Based on the 125% increase as outlined in the bill, the only area that will see a potential temporary increase in the conforming loan limit is the Seattle-Tacoma-Bellevue metropolitan area. That new loan limit will likely be in the range of $471,000 to $472,500, depending on what HUD actually comes out with when they announce the new median home price for 2008. All other areas currently fall below the current conforming loan limit as it currently stands.

Another question that has come up is, “what do you think the rates will be?” While surfing the internet for information I did come across an interesting article that claimed the rates for the temporary conforming loan limit increase will not be the same as actual conforming loan limit rates. The article went on to say that those loans originated under the temporary conforming loan limit increase will actually be specifically coded to identify those loans and that the rates will actually fall between current conforming and non-conforming rates. Here’s an example of what that might mean:

This is still a great savings for those that will refinance in order to increase their monthly cash-flow. This will also be a great benefit for those that want to take advantage of this opportunity to purchase a new home that would have previously meant a higher interest rate and payment. I will be keeping a look out for more detail regarding the proposed interest rate structure.

Of course this opportunity does currently have a time limit. Currently, the bill, as introduced, will expire on December 31^st, 2008.

Please take a moment to review H. R. 5153.

I hope to keep you updated as information becomes available.

Shawn Anderson