Archives for July 2013

Your Math Skills Can Affect Your Chance Of Foreclosure

July 29, 2013 by admin

$Wallingford PA Real Estate - wallingford Pa - A Borrower's Math Skills Can Effect The Chances Of Foreclosure$

A Borrower’s Math Skills Affect Chances Of A Forecosure

Borrowers with poor math skills made up a higher percentage of homeowners in foreclosure during the housing bust than those who were skilled at arithmetic.

According to a study released Monday, math-challenged borrowers were five times more likely to default on their loans.

“Whether you’re good with numbers predicts how likely you are to default,” said Stephan Meier, an associate professor of business at Columbia Business School, who authored the report along with economists from the Federal Reserve of Atlanta and the University of Lausanne.

The study examined several hundred borrowers who held mortgages issued in 2006 and 2007 — right before the mortgage meltdown. Of the study subjects, 25% of the borrowers who scored in the lowest bracket for math skills had defaulted on mortgage payments within five years of getting the loans. Meanwhile, only 5% of those in the top tier for math skills defaulted.

The survey sample included homebuyers from a variety of backgrounds, from blue collar workers to corporate professionals. Their math ability covered the gamut — from those with very limited abilities to a mathematician with a six-figure salary, according to Kristopher Gerardi, an economist with the Federal Reserve of Atlanta.

The researchers controlled for differences in overall intelligence by measuring for verbal and general IQs, as well as math skills, and controlled for socioeconomic factors, such as age, sex, income, ethnicity and local labor market conditions.

From CNN’s Bad At Math? You’re More Likely To Lose Your Home

Wallingford PA Real Estate – Wallingford, PA 19086

Was My Home a Good Investment?

July 29, 2013 by admin

Plug in a few relevant numbers and measure your home’s return as an investment against the average U.S. home and the performance of stocks and bonds during your home ownership. From www.money.cnn.com

Wallingford PA Real Estate – Wallingford, PA 19086

No Maintenance Lawns Rise In Popularity

July 27, 2013 by admin

As August approaches, many people are becoming tired of the weekly grind of mowing their lawn in the heat, or paying for a lawn service. Not to mention weeding and watering, and it takes a toll on one’s body and one’s wallet. If this is you, you may want to consider synthetic grass, which is growing in popularity due to its lower maintenance needs and long-term cost.

Synthetic grass is made of nylon, polyethylene or polypropylene filaments that are colored to look like various species of grass, and threaded into a backing that lets water through. Beneath the backing is a drainage layer, usually compacted gravel. The grass is fastened along the perimeter and then leveled out with recycled crumb rubber or sand to keep it from blowing away.

While artificial grass has a higher upfront cost, it is free for the next 15 to 25 years thereafter. This compares to natural grass, which must be watered, fertilized and mowed. It is estimated that on average a person installing artificial grass will pay for the investment in seven years.

As with most things, there are some negatives to artificial grass. For example, it is not 100 percent maintenance free, and may require some blowing or raking of leaves. Additionally, synthetic grass radiates heat to surrounding people, pets, trees and buildings; however, like with real grass, shade trees will prevent fake grass from getting too hot.

Wallingford PA Real Estate – Wallingford, PA 19086

Rising Mortgage Rates – Keeping A Historical Perspective

July 24, 2013 by admin

Wallingford PA Real Estate - Wallingford PA - 10 Year History - 30 Year Fixed Mortgage Rates

Interest Rates During The Decade Past – Freddie Mac

As mortgage rates have risen in the past few weeks on the heels of the Fed’s announcement regarding the scaling back of their bond repurchasing efforts, there has been concern about the impact on the gradually recovering housing market.

While it is true that rising rates will probably always have some negative impact on the market, it is important to look at rates in a historical perspective. Rates remain very attractive when compared to the past decade, with Freddie Mac reporting an average rate of 4.37% as of July 18.

Record low rates over the past year did not produce any dramatic recovery, and it has been predicted that even with rates expected to reach the 5% mark later this year, such an increase will not hamper the market’s recovery.

Wallingford PA Real Estate – Wallingford, PA 19086

Hardwood Floors – Show Them If You Have Them

July 22, 2013 by admin

Wallingford PA Real Estate - wallingford PA - Hardwood Flooring IIs Among Buyers Favorits Items

Hardwood Flooring Is High On Buyer Wish Lists

Wood floors are in high demand among home buyers. If you believe a survey by the National Wood Flooring Association, 90 percent of real estate agents say that homes with hardwood floors are easier to sell, and 90 percent also say that homes with hardwood flooring tend to sell for up to 10 percent more than homes that don’t have it.

I would definitely concur that the vast majority of buyers prefer wood floors, not so much with the conclusion about the increase in overall value.

I never recall a buyer asking to show homes with carpeting, but plenty have specified that wood floors are on the top on their wish list. I have been in homes that have brand new carpeting, and been asked by the buyers to inquire with the listing agent whether or not there are hardwood floors underneath.

So if you are considering selling your home, by all means show off one of it’s best assets – your hardwood floors, if you have them.

If you are not sure about what is beneath your carpet, go into a closet and pull up the carpet in a corner. Pull it back a few inches and you will be able to determine if there are hardwoods underneath.

The age of you home can also help determine whether or not you have hardwood floors. Plywood unerlayment coupled with wall to wall carpeting became the flooring option of choice in the late 60’s, and solid wood flooring became an option instead of being commonplace. So if you home is more than 45 years old chances are good that you might have hardwood flooring.

Tearing up carpeting is not a task that requires a lot of skill, but it is time consuming. Removing the tack strips and staples, especially on stairs where they proliferate, means a lot of time on your knees with a pair of pliers.

Hardwood floors that have been covered for a long period of time often do not require a lot of effort to bring them back to shape, but pet stains from current or past pets can pose a potential problem that can prove difficult to remove.

Attractive hardwood floors make your home more marketable, and creates a postive impression in a potential buyer’s mind. Give them what they are looking for!

Wallingford Real Estate – Wallingford, PA 19086

Archives for July 2013

Borrowers with poor math skills made up a higher percentage of homeowners in foreclosure during the housing bust than those who were skilled at arithmetic.

S. Clark Kendus