• Mortgage Term – Mortgages are generally available at 15-, 20-, or 30-year terms. The longer the term, the lower the monthly payment if the same amount is borrowed. However, you pay more interest overall if you borrow for a longer term.
• Fixed or Adjustable Interest Rates – A fixed rate allows you to lock in a low rate for as long as you hold the mortgage and is usually a good choice if interest rates are low. An adjustable-rate mortgage (ARM) is designed so that interest rates will rise as interest rates increase; however they usually offer a lower rate in the 1st years of the mortgage. ARMS also usually have a limit as to how much the interest rate can be increased and how frequently they can be raised. ARMS are a good choice when interest rates are high or when you expect your income to grow significantly in the coming years.
• Balloon Mortgages – Balloon mortgages offer very low interest rates for a short period of time – often 3-7 years. Payments usually only the interest, so the principal owed is not reduced. However, this type of loan may be a good choice if you think you will sell your home in a few years.
• Government-backed loans – Government-backed loans, sponsored by agencies such as the Federal Housing Administration ( http://www.fha.gov ) or the U.S. Department of Veterans Affairs ( http://www.va.gov ), offer special terms, including lower down payments or reduced interest rates – to qualified buyers.
Slight variations in interest rates, loan amounts, and terms can significantly affect your monthly payment. For help in determining how much your monthly payment will be for various loan amounts, use my handy mortgage calculators. I offer over 15 different calculators to service your needs.

This information is reprinted from Realtor Magazine Online by permission of the National Association of Realtors, copyright 2005, all rights reserved.

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A $200,000 home costs more than a $185,000 home, right? Well, yes and no. Assuming the same type of financing for both homes, the $200,000 home does cost more initially. But many factors contribute to the overall long-term cost of a house. Here are some things to keep in mind when trying to determine the true cost of purchasing a particular home:

• Does it have a pool or hot tub that requires maintenance?
• How much yard maintenance is required and who will perform it?
• Are there trees that should be removed?
• What are the utility costs? Although your usage won’t be exactly the same as the current owners, you may be able to get their utility bills for the past year from them or directly from the utility company.
• How soon will the roof need to be replaced?
• Does the house need repainting?
• Does the electrical system need upgrading to handle the load for your appliances and electronics?
• Does the home have aluminum wiring, lead-based paint, or other safety or health hazards you will want to address?
• Does the house need new carpeting or flooring?
• What remodeling projects do you see as a must?
• Will appliances need replacing?
• What are the estimated property taxes for the property?

Also, be sure to get a professional inspection to identify other potentially costly problem areas.

2004 by the Texas Association of Realtors, All rights reserved.

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This week Governor Rick Perry appointed two new public members to the Texas
Appraiser Licensing & Certification Board (TALCB); Mr. Malachi O. Boyuls of
Dallas and Ms. Sheryl Swift of Galveston. Mr. Robert D. Davis, Jr., currently a
public member on the Board, has been reappointed with a new term expiration of
January 31, 2012.
Mr. Boyuls is an associate in the Dallas office of Gibson, Dunn & Crutcher LLP,
where he currently practices in the firm’s Litigation Department. Mr. Boyuls
received his law degree from New York University in 2006 and his undergraduate
degree in Religion and Philosophy from the University of Mary Hardin Baylor in
2002, where he was a member of the Crusader football team. Mr. Boyuls’ term
expires January 31, 2012 and he replaces Bill Schneider of Austin.
Ms. Swift is a Registered Texas Assessor Collector and is the Chief Deputy of
Operations with the Galveston County Tax Office, where she supervises all fund
related operations within the main and branch offices. In addition, Ms. Swift is
responsible for training all management staff on the Operations team. She has been
with Galveston County since December 2000. Ms. Swift’s term expires January 31,
2011, and she replaces Danny Perkins of Houston.
“I am very happy to welcome Mr. Boyuls and Ms. Swift to the Board and look
forward to working with them on the many challenges facing the appraiser
profession in Texas,” commented TALCB Chairman, James “Jaime” Ratliff. “At
the same time, while we are sorry that Mr. Schneider and Mr. Perkins are leaving,
we sincerely thank them for their many years of dedication and service.”
Also new to the agency is Mr. Steven Leipsner of Lakeway who has been appointed
as the sole public member to the statutory TREC Broker-Lawyer Committee. His
term ends in 2015.
The agency welcomes these new appointees!

1. Give your forwarding address to the post office, usually two to four weeks ahead of the move.
2. Notify your credit card companies, magazine subscriptions, and bank of the change of address.
3. Develop a list of friends, relatives, and business colleagues who need to be notified of the move.
4. Arrange to have utilities disconnected at your old home and connected at your new one.
5. Cancel the newspaper.
6. Check insurance coverage for moved items. Usually movers only cover what they pack.
7. Clean out appliances and prepare them for moving, if applicable.
8. Note the weight of the goods you’ll have moved, since long-distance moves are usually billed according to weight. Watch for movers that use excessive padding to add weight.
9. Check with your condo or co-op about restrictions on using the elevator or particular exits.
10. Have a “first open” box with the things you’ll need most – toilet paper, soap, trash bags, scissors, hammer, screwdriver, pencils and paper, cups and plates, water, snacks, and toothpaste.

Plus, if you’re moving out of town:

1. Get copies of medical and dental records and prescriptions for your family and your pets.
2. Get copies of children’s school records for transfer.
3. Ask friends for introductions to anyone they know in your new neighborhood.
4. Consider special car needs for pets when traveling.
5. Let a friend or relative know your route.
6. Carry traveler’s checks or an ATM card for ready cash until you can open a bank account.
7. Empty your safety deposit box.
8. Put plants in boxes with holes for air circulation if you’re moving in cold weather.

6 Items to Have on Hand for the New Owners

1. Owner’s manuals for items left in the house.
2. Warranties for any items left in the house.
3. A list of local service providers – the best dry cleaner, yard service, etc.
4. Garage door opener.
5. Extra sets of house keys.
6. Code to burglar alarm and phone number of monitoring service if not discontinued.

Reprinted from REALTOR Magazine Online by permission of the National Association of Realtors, Copyriht 2005, All rights reserved

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It has been my experience that home buyers follow their hearts. They should, of course, because they are making a huge purchase for their family. It’s an important decision and not one you make every day. However, sometimes it is important to set aside emotions and make a clear thinking decision and make sure your dream home is not a money pit.
Always hire a professional inspector to inspect the home you choose before you complete the sale, even if it’s a foreclosure or short sale. There are five key areas to determine if the home has serious problems; roof, foundation, piping, flooding, and unapproved work.

1. Roof – A new roof can cost between $5,000-$15,000 depending on the type.
• A quick method to determine if the roof is leaking is to look in the attic. Warning – don’t climb into the attic yourself, unless you know how to simply open the attic access panel and look inside.
• With a flashlight check the rafters. They should not show water stains, which indicate leaking.
• With the flashlight off, look up at the roof
• Any pintpoints of light shining through indicate a worn roof.

2. Foundation – A cracked foundation is a serious matter. It can cost tens of thousands of dollars to fix it, and, in severe cases, may not be fixable. Keep an eye out for these potential warning signs:
• V-shaped cracks (larger at the top than at the bottom) around the perimeter of the house.
• Cracks in interior walls near corners of doors or windows. Look at all the corners of windows and doors, and at joints where walls meet walls, ceilings, or doors for signs that they are pulling away from each other.
• Doors that stick and squeak.
• Leaks and cracks in and around the fireplace.
• Obvious cracks in the brick and mortar.

3. Piping – Copper piping rarely corrodes and is the plumbing of choice these days, but many older homes have galvanized steel plumbing. After 30 years or so it tends to rust out and leak. Replacing it can cost $5,000 or more, so it’s something you’ll want to watch out for. Call a plumber if you have specific questions.

4. Flooding – If a house is poorly situated on its lot, flooding can occur under the house, which can seriously damage the home. In the basement, check for water stains on the foundation indicating flooding during rainly periods. If you find these, call in a soils engineer to confirm the problem and suggest solutions.

5. Unapproved work – All improvements to the property should have been done with permits from the local building department. Work done without permit may be substandard and , if discovered later, may beed to be ripped out. Go down to your local building department and request copies of permits for all work that was done at the property address. Compare these with any additions or replacements done by the seller. If work was not done by permit, you may ask the seller to obtain permits for the work and bring it up to building-code standards before you purchase.

Copyright 2004 by the Texas Association of Realtors, all rights reserved.

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