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Conventional 30-year fixed mortgage rates are floating around 5%, which is a slight improvement over the past week, but most analysts believe such low rates are not likely to last.  There are also persistent rumors that significant changes may be coming to government-backed FHA (Federal Housing Administration) home loans.  Apparently, the following changes are currently under consideration by FHA:

 * Remove the per se blocking of sales on 'flipped' properties by offering a waiver to borrowers interested in pursuing flips in the marketplace, although there will be very specific circumstances under which the transaction will be allowed to occur under FHA guidelines.  A proposed waiver form has already been circulated.  

* Increase the minimum FHA down…

Happy New Year and best wishes for 2010!

This post is the first of a series of entries that will report on important changes impacting the Maryland residential real estate and home mortgage markets. 

Home mortgage interest rates leading up to the 2009 Holidays were especially volatile. The 10 year treasury yield index (ticker TNX) moved from its recent lows in December of 32.5 up to 38.15 as of Friday, January 8. This, along with other key economic factors have caused 30 year fixed rates to climb from 4.625% to 5.25% in just a few weeks.

Yes, rates are still very attractive but many buyers seem to be emotionally attached to sub 5% rates and are back in a "wait and see" mode. Keep in mind that the Federal Reserve said it will discontinue its practice…

As compact fluorescent light bulbs (CFLs) have increased in popularity due to their significant energy saving attributes (they consume about 75% less electricity and can last almost 10 times longer than incandescent bulbs), concern has arisen about the mercury content within the bulb. 

It is true that CFLs do contain mercury.  According to a 2007 paper issued by the EPA’s Energy Star program, each CFL bulb tube contains about 5 milligrams of mercury, which is an element essential for the cool-burning functionality of the bulb. 

Although mercury is a naturally occurring element, accumulation at certain levels in humans can be toxic. Efforts are underway to reduce the necessary amounts of mercury in these bulbs, but the nature of CFLs will likely always…

As of January 1, 2008, property owners of a principal residence in Maryland are required to file a one-time application in order to receive the Homestead Tax Credit.  This credit limits the amount of assessment increases for real estate tax purposes.  Previously, eligibility for the credit was automatic, but legislation passed in 2007 by the Maryland General Assembly mandates the one-time paper or online application filing. 

The Maryland Department of Assessments and Taxation will be sending notices to all homeowners beginning in January 2008 for the 1/3 of homeowners being reassessed for this year.  All other homeowners (the other 2/3) who will be reassessed in 2009 and 2010 do not need to file the application until that time, and may not receive a…

Although Zillow clearly dominates the market of providing free, instantaneous real estate valuation estimates, it is not the only source.  A variety of websites now offer similar online valuation calculators that provide results simply by having a user enter a residential address. 

There has been and will continue to be significant debate about the accuracy of results from these online algorithm-based valuation calculators.  While many of the criticisms leveled against Zillow and similar websites  have some merit (i.e., some online estimates do not reflect true market values), it is not the intent here to rehash the reasons for these shortcomings.  And so, with the broad caveat of ‘user beware’, here is a list of some sources of free online home… Read Full Post

All Maryland residents can now receive special discounts on compact fluorescent light (CFL) bulbs through a unique mark-down program sponsored by Baltimore Gas & Electric (BGE). 

The program provides an automatic $1.50 markdown on each CFL bulb purchase and $3.00 on multipacks.  The great thing is, there are no coupons, mail-in-rebate forms, etc., involved in receiving this discount.  The discount is already reflected in the price of the bulbs paid at the register when purchased at participating retailers, which include The Home Depot and Costco.   

Given the fact that CFLs use about 75% less energy and can last as much as 10 times longer than conventional incandescent bulbs, buying CFLs makes good sense for homeowners from a monetary perspective… Read Full Post

If you are thinking about a remodeling project or are perhaps just considering ways to lower your electric bill by making small home improvements, all the available options now being discussed in the media may seem a bit overwhelming.  As “green” issues have become recently in vogue many people are holding themselves out to be experts and the array of recommendations and sources of information have grown considerably. 

To help remodelers, whether homeowners or contractors, make decisions that will actually make a proven difference in terms of energy efficiency and natural resource conservation, the Partnership for Advancing Technology in Housing (PATH) recently issued a “Top 10” List for Remodeling.  PATH, which is a joint venture between various… Read Full Post

Sometime in the next few weeks yet another website, www.RealUmbrella.com, will be launched with the goal to fundamentally change how residential real estate transactions are handled.  “Stand by for The Real Estate Market shake up!”, claims the home page of RealUmbrella.com, under the motto “Be Your Own Agent” as it ambitiously touts itself as “The For Sale By Owner of the future - today.”  

At its core, the plan of the business model is to allow buyers, sellers and any other supporting parties to the transaction (lender, title company, etc.) to complete the entire sale online -- from listing to closing.  And all this completely without the assistance of real estate brokers/agents. 

According to the RealUmbrella.com website: 

“With Virtual… Read Full Post