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| The Real Estate Chronicle |
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Don't Miss This One! 3/2 new flooring, paint, landscaping. Super clean in gated community. 5311 Milagro, Bakersfield CA |
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Great Neighborhood 3/2 new paint, carpet, roof and landscaping in a nice neighborhood. 3908 Wood Lane, Bakersfield, CA |
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Like New Again 3/2 home w/new flooring, paint, and lighting throughout. 5705 Canberra, Bakersfield, CA |
Articles and Advice |
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| Not all woods absorb stain the same By Paul Bianchina Q: First-time homeowner and first-time stainer here! I had a small porch made out of untreated wood built last summer that I would now like to stain. I like the redwood look I see throughout the neighborhood, what I think of as the most common color of stain around! I purchased two sample packets of stain, both by Olympic. One was a toner and one was a semi-transparent version of the same redwood color. I applied them both to a piece of wood leftover from my porch and they both went on like a watercolor paint -- very thin, very clear and not deep colors at all. I feel it colored it maybe only a shade darker than what the natural wood is. I do realize this wood is not the optimal wood to build with, but it has got to be stainable! (Please tell me it is!) Do you have any suggestions as far as getting a deep red/brown coloring to soak in the wood and give it the rich look? Is there something I'm doing wrong? Is there a better stain for this type of wood, or do I just start considering paint? Any suggestions would be great. A: No need to start considering paint just yet. All wood is made up of fibers and cells in different degrees and configurations. The more "open" the cell structure, the more readily it will absorb liquids, such as stain. So all woods will accept stain to some degree, some more than others. Some woods -- pine and oak for example -- will even absorb stain very differently within the same piece. Other factors include how wet or dry the wood is, how weathered it is, how smoothly sanded, etc. One of the first things you need to do is determine what type of wood was used to build the porch. You mentioned that it was not pressure-treated and it is apparently not redwood. Fir, hemlock, cedar, and pine would be some other common porch woods, but there are others as well. I would suggest that you either ask the person who built the porch, or take a sample down to your local lumberyard and ask one of the people there to identify it for you. Stick with a dedicated lumberyard, not a home center. Armed with that knowledge, I want you to next go to a paint store -- again, a dedicated paint store, not a home center. Show them the type of wood you're working with and the color you're hoping to achieve, and they can work with you to select the proper type of stain and the proper color, as well as giving you tips on how to apply it. Bring the wood sample with you as well, and they may be able to test it for you to see if the color is going to come out the way you want. Q: I am going to be building a cover over my deck. I am going to have to put it about 15-18 inches up on the existing roof (about the back of the eve) in order to get the slope needed for drainage. I have been looking for a bracket that will hold a ledger board up slightly off the roof, so water can go under and not rot the board. I have not found a bracket that will do this. The closest thing I have found is a basic 90-degree, one-inch-wide, angle bracket that you can find in any hardware store, but I do not think it will be strong enough. Any suggestions? A: Because you are looking at a bracket that needs to have the proper slope to match both the house roof and the roof over the deck, you may not find a stock item that fits exactly. I would suggest you check out the Simpson Strong-Tie Web site at www.strongtie.com. Simpson is probably the largest manufacturer of metal hangers, brackets and connectors for the construction industry, and if anyone will have it they will. If you find something in their online catalog that will work, just jot down the stock number -- and if your local lumberyard or hardware store doesn't have it, they can order it for you. If you can't find anything there, you'll have to have ones made. If you can make a simple sketch of what you need, any local welder will be able to weld or bend brackets to your specifications, and the cost should be pretty reasonable. I'll also suggest another alternative. Install a ledger board flat on the roof, parallel with the eaves, and secure it to the roof by screwing it down into the rafters. Cut the ends of the deck covering rafters on an angle so that they lay down flat on the ledger and create the angle of slope you want for the roof over the deck, then fasten the rafters to the ledger board. Install your roofing on the deck cover, and then install a sheet metal flashing that tucks under the house roofing and goes over the deck cover roofing. Water coming down off the roof will be channeled up onto the deck cover, where it will then run off. Since the ledger is completely under cover, it won't get wet. For a little additional assurance, you can use pressure-treated lumber for the ledger. |
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| CFLs today Energy-Saving Bulbs Offer More Choices, Less Mercury, and Easier Disposal By Michelle D. Alderson General Electric introduced the first compact fluorescent light bulb (CFL) to the market in 1992. In that same year, the U.S. Environmental Protection Agency (EPA) established the ENERGY STAR label as a “voluntary labeling program designed to identify and promote energy-efficient products to reduce green house gas emissions.” CFLs were one of these newly regulated products. The energy-saving bulb wouldn’t find popularity, however, until the new millennium when mainstream America became more conscious of energy conservation and the environment. Today, the CFL is still growing in popularity; consumers like that it saves energy -- and money. According to the EPA, in 2007, Americans saved $1.5 billion by switching to ENERGY STAR-qualified CFLs. The CFL light bulb has also improved greatly in the past 30 years with more lighting choices, regulation of its mercury output, and easier disposal. Choosing the Right CFL Initially there was only one type of CFL available and consumers didn’t have the option to use CFLs in diverse lighting fixtures such as chandeliers, sconces, and ceiling fans., Different sizes and wattages of CFLs are now available, as well as bulbs for three-way lamps and dimmers. Following is a quick guide that will help you choose what type of bulb to use with the different lighting fixtures in your home. Chandeliers Type of bulb: Low-wattage covered bulbs that are not as bright as regular CFLs, such as a 40-watt bulb. Ceiling Fixtures Type of bulb: Spiral or covered bulbs with 2700 to 3000 K. Choosing between a covered or spiral bulb is an aesthetic choice with a ceiling fixture that has an open shade. Table and Floor Lamps Type of bulb: Spiral or covered with 2700 to 3000 K in lamps that have a fabric shade or warm-colored glass. For lamps that have more of a blue-colored glass shade, choose a CFL with 3500 to 4100 K. Sconces Type of bulb: Low-wattage covered bulbs that are not as bright as regular CFLs, such as a 40-watt bulb. As with ceiling fixtures, choosing between a covered or spiral bulb is just an aesthetic choice with a ceiling fixture that has an open shade. Recessed Lighting Type of bulb: Indoor reflector. Since recessed lighting is used often, use a bulb that is longer lasting. Mercury and Disposal The mercury content in an ENERGY STAR CFL cannot contain more than five milligrams of mercury; most contain less than four, which is just enough to cover the tip of a ballpoint pen, according to the Lighting Research Center at Rensselaer Polytechnic Institute (RPI). Disposal is getting easier, but a CFL cannot be thrown into the trash like a regular lightbulb. Home Depot and IKEA recycle CFLs and you can also visit Earth911.com to find out other local recycling centers. To clean up a broken CFL properly, instructions will differ based on the surface (for example, carpet or hardwood floors), but the first thing to do is ventilate the room. Go to the EPA Web site at http://www.epa.gov/mercury/spills/index.htm#flourescent for the correct procedure. For more information on CFLs, including how they work, visit ENERGY STAR’s website (http://www.energystar.gov/index.cfm?c=cfls.pr_cfls). |
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| No capital gains tax on home exchange? By Benny Kass DEAR BENNY: My husband and I built a townhouse in 1983 for $33,000. We lived there for a few years and then rented it out for 17 years, taking all the tax advantages such as depreciation, etc. In 2003 we sold it for $90,000, and did a like-kind exchange with a house that my husband built. That house has been rented for the past six years and now has a market value of $190,000. We have no liens on the home and would like to sell it and put the money towards our dream home. If we moved into the home and lived there for two years, would we have to pay capital gains taxes when we sell the home? We've asked our certified public accountant (CPA) and she said we would have to pay capital gains because we took depreciation on the properties. We also asked a friend who worked for the Internal Revenue Service and he said as long as we lived in the home for at least two out of the last five years before we sold the home, we would not have to pay capital gains tax. Who is correct? --Jeanne DEAR JEANNE: I believe your CPA is correct. Any depreciation that you took after May 6, 1997, will be taxed. And based on a new 2008 tax law, the gain must be allocated between the rental and the personal use starting after Dec. 31, 2008. The portion of the gain allocated to the rental period will be taxed. I would always follow the advice of your paid accountant, rather than that of a friend, even if he or she works for the IRS. DEAR BENNY: My husband and I just signed documents to refinance our home. The entire process was long and frustrating. The appraisal was done a month ago, but the lender never notified us that the appraisal value was lower than what we needed to refinance. We found this out almost one month afterwards and only after we called to ask how things were going. The communication with the lender was extremely poor, but that wasn't the biggest problem. The lower appraisal value meant we had to pay down the loan by $20,000 in order to refinance. Our house has three bedrooms, and four of the six sales comps were two-bedroom houses. Adjustments were made only for the overall square footage, not for the number of bedrooms. We felt the amount was inaccurate for our area and asked the lender to have the appraisal reviewed. I gave the lender additional comps and the same appraiser replied with a second report with no change in value. There were numerical discrepancies between both reports. One comp ended up with a higher value, as the first report omitted to make any adjustments. I contacted both the lender and appraiser by e-mail and did not receive a response to these errors. In the past few weeks a house in our neighborhood of similar size and lot has sold for more than $100,000 above what our house was valued at. I looked at the open house and this house had only one bathroom and a single garage compared to our two bathrooms and double garage. In order for that house to sell, it would have had to appraise at the amount offered. I've read all sorts of stories about low appraisals happening, but these appraisals affect homeowners from refinancing and buying a home. Have we been wronged and is there anything we can do? If an appraisal is so important to the loan process, it should at the least be correct and not contain errors. --Maileen DEAR MAILEEN: I can't agree with you more. Although appraisals are not an exact science, they are crucial to the selling, buying and refinancing process. But the appraisal process has been dramatically changed in the past year. As a result of a compromise agreement between the New York Attorney General and the major mortgage secondary lenders such as Fannie Mae and Freddie Mac, mortgage lenders have much less impact on how appraisals should come in. Most lenders are now required to follow what is known as the "Home Valuation Code of Conduct." Perhaps the most significant part of this new code is that mortgage lenders cannot select an appraiser. The lender must contact an appraisal company who will assign an independent appraiser to prepare the valuation report. What do you do if you are not satisfied with the appraisal? Eventually, an Independent Valuation Protection Institute will be established that will have the authority to review all such complaints. However, that entity has yet to be created. So in the meantime, if you get no satisfaction after talking with your lender, you can complain to Freddie or Fannie. The Federal Housing Administration (FHA) has not adopted the code, so if your loan is backed by FHA, complain directly to the local FHA office in your area. These new procedures have created major problems for the lending community and for homebuyers and homeowners. However, the underlying concept is important: Appraisals should be totally independent and not based on what a mortgage lender would like to hear so that he can make any loan -- no matter how bad it may be. DEAR BENNY: We own a commercial condo building that we bought in 1985. If we sell it now, not only do we have to pay capital gains tax, but also recapture all of the depreciation we have taken on it over the years. It is still used in our business, but it is pretty much totally depreciated, so almost all of the sales price would be subject to recapture as far as I understand. Will a 1031 Starker exchange help us in any way if we decide to sell this location? The only reason we would consider selling it is that the parking situation there is getting more and more crowded, but we don't have to sell. What is your advice? --Caleb DEAR CALEB: Yes, a Section 1031 exchange (also known as a Starker exchange) should be considered if you really want to get rid of that property. You would have to carefully follow the rules, because they are strict. For example, when you sell that property, you cannot have any access to the sales proceeds. They have to be put in escrow to be used only to buy the new property. The replacement property must be identified within 45 days from the date you sold the relinquished property, and you must take title to the new property within 180 days from the date of the earlier sale. Keep in mind that a 1031 exchange does not mean that you avoid paying any capital gains tax. Your tax basis from the relinquished property becomes the tax basis of the replacement property. Thus, you only defer, not avoid, paying the tax. This is complicated and you must talk with a tax attorney who understands the process. Benny L. Kass is a practicing attorney in Washington, D.C., and Maryland. No legal relationship is created by this column. |
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| What makes food "organic"? By Charly Papp Organic food is hot and with good reason -- current research shows that it does indeed live up to the hype. Recent studies at UC Davis and the Danish Institute for Agricultural Research have detected higher levels of antioxidants, vitamins, and minerals in organically farmed foods than in their conventionally produced counterparts. While this news makes their often-higher price tag easier to swallow, navigating the organic options at Whole Foods can be anything but simple. Here, a run-down of the terms so you’re ready to face the aisles: Organic – farmed without the use of chemical pesticides, fertilizers, sewage sludge, and—in the case of livestock—antibiotics and growth hormones. While the jury’s still out on whether these things are actually harmful to your health, it sure makes non-organic foods a lot less appetizing. When the term is used on packaged food labels, it ensures that at least 95 percent of the ingredients are USDA-approved organic. Those labeled made with organic ingredients must contain at least 70 percent organic components. For more information on USDA’s certification system, visit their website: http://www.ams.usda.gov/AMSv1.0/ams.fetchTemplateData.do?template=TemplateA&navID=NationalOrganicProgram&leftNav=NationalOrganicProgram&page=NOPNationalOrganicProgramHome&acct=AMSPW. Conventional – foods not otherwise distinguished as organic. These foods may or may not be farmed with the use of chemicals, antibiotics, and hormones. Natural – a distinction used for foods that have been minimally processed and contain no preservatives. However, the definition is not a legal one, so watch out for imposters. And remember—just because a food is natural doesn’t necessarily mean it’s healthy. Super-premium ice cream that is made with all-natural ingredients still packs a whopping 240 percent of your daily saturated fat intake per pint! Sustainable Agriculture – farming that favors more natural practices to harvest a crop, which in turn creates a system wherein food can be produced indefinitely. Transitional – food produced by a farmer that is transitioning from conventional to organic—a process that takes at least three chemical-free years to certify. Fair Trade – farmed by workers who receive a living wage and work under safe conditions. To learn more about fair trade, visit the International Federation for Alternative Trade’s website: www.ifat.org. Recombinant Bovine Growth Hormone (rbST or rBGH) – a genetically engineered hormone given to cows to boost milk production. Many claim that consumption of this hormone—which is banned in Canada and Europe—contributes to elevated cancer risk, though clinical studies have yielded somewhat conflicting results. Genetically-Modified Foods (GMOs) – crops that have been scientifically manipulated to enhance some trait, be it longevity or nutrition. Critics attest that their use is altering our environment in a host of unhealthful ways and add that their effect on humans is not yet known. For a fair look at the issue, see http://www.csa.com/discoveryguides/gmfood/overview.php You can safely assume that a food labeled “organic” is certified so—the fine for false claims can reach upwards of $10,000—but beware of the greenwash that is lending its ghoulish hue to many a not-so-virtuous product. Due to the monumental success of organic foods, many manufactures are jumping onto the green bandwagon if for nothing else than packaging, favoring designs that present a more wholesome image to the consumer. This means you’ll see more earth-toned exteriors, rustic fonts, fruits and vegetables figuring prominently… don’t be fooled. Look for key words like organic or no GMOs and check the ingredients and nutrition facts for the stats. Though the range of organic products is ever evolving and expanding, with a little bit of knowledge, you and your family can grow with the trend—without the use of chemical fertilizers and pesticides. |
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| Want to conserve water but still have a lawn? Go native. By Padma Nagappan Before the advent of lawnmowers, there was a time when lawns were meant only for the wealthy, since they could afford to hire a crew of workers to manually cut and maintain their sprawling gardens with scythes. The rest of the folks used what land they had to grow vegetables, medicinal herbs, and flowers in cottage gardens. Today, grassy lawns are ubiquitous in front and back yards across America and a trademark of modern housing developments. Given that southern California is experiencing a prolonged drought and parts of the north have water supply problems, it may be time for home owners to sit up and question whether the resources spent on maintaining their lawns are justified. Utility officials estimate that up to 70 per cent of the average residential water bill is derived from outdoor use. What are the alternatives? Artificial turf companies peddle their products as the ideal no maintenance, green solution to replace thirsty, patchy lawns. Water agencies down south even offer rebates for consumers who replace lawns with turf. But there is concern about the lead content in the turf, and is the subject of an ongoing debate. A better alternative would be to go native, choosing grasses and plants that are drought tolerant and indigenous to California. David Fross, the founder of Native Son Wholesale Nursery in Arroyo Grande, has stocked native grasses for years, but until recently there were no takers. Now, with gardeners wanting to conserve water, it is a challenge to keep these varieties in stock. “What complicates things is that California has microclimates that vary from coastal to inland locations, so irrigation requirements for the same plants would vary depending on where you live,” says Fross, whose latest book, Reimagining California Lawns (Cachuma Press), will be published in 2010. One issue with native plants is that in adapting to our Mediterranean climate, they go dormant in the summer, which is when most folks want to enjoy their gardens. For moderate to heavy traffic, Fross recommends sedges such as the slender field sedge, which is compact, stays green all summer, needs about half the water of a traditional grass, and monthly mowing. Other options include blue gama grass, California meadow sedge and blue sedge. Korean velvet grass is not native but is slow growing, dormant in winter, and can be left unmowed for a natural, clumping look. Buffalograss UC verde is native to the west, forms a dense turf of bright green blades, and stays greener longer than other sedges. For moderate traffic, meadows that combine perennials with grasses and sedges into carpets are a good option, Fross says. He suggests yarrow varieties (Achillea species) that are water thrifty, can be mowed, and sprout small flowers. Other choices are deer grass and checkerblooms. The Corsican mint is a good candidate for light traffic areas and between stepping stones. If you prefer ground cover, create carpets or tapestries using bee’s bliss sage. Gravel and rock gardens with accent plants and succulents such as agave, manzanita, and buckwheat are yet another alternative. Except for the meadow, all of these options are relatively low maintenance but will require care during their first season. To kill your patchy grass without chemicals, tamp down sheets of black plastic and it will die in eight to twelve weeks, suggests Fross. Conversion costs range from $10 to $50 per square-foot, depending on what you choose and who does the work. The popular belief that native plants are woody and gray is incorrect, he says, explaining that they offer a wonderful, rich palette of options and are versatile, being able to adapt to locations on valleys and banks, sun or shade, median strips and meadows. There are 5,000-plus native choices that can serve every function that the generic plants from garden stores offer, he explained, suggesting alternatives for popular ornamental plants. If you like hibiscus for instance, a great native plant equivalent would be the abutilon palmeri, local to San Diego, which has luminous, golden flowers and felted, gray leaves. Another iconic California native is the Ceanothus, with blue spring flowers. To find out where to purchase native plants, visit www.nativeson.com for a list of retail nurseries and www.bewaterwise.com for plant suggestions. Padma Nagappan is a San Diego based business writer who focuses on sustainability. |
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| Need fencing? Think vinyl By Paul Bianchina If you're exploring the different options for new or replacement fencing, one material to be sure to have on your list of possibilities is vinyl. Vinyl fencing manufacturers have made great strides in recent years, offering a tremendous array of sizes, styles and options to choose from. The overall quality is up; the prices have come down; and competition among the growing number of manufacturers makes it a good time to consider vinyl for your next fence project. Vinyl fencing is manufactured from polyvinyl chloride (PVC), blended with other chemical additives that add strength and protection from ultraviolet (UV) rays. Unlike wood, vinyl fencing is completely weather-resistant and virtually impervious to rot, insects, or other environmental damage. Another advantage to vinyl is that the color of the fence is created by the color of the vinyl itself -- it is completely through the vinyl, as opposed to a surface layer like paint that can chip, peel or wear off. Vinyl fencing still is more expensive than wood, but the lower maintenance expense typically makes the lifecycle cost considerably lower. Vinyl also compares very favorably to aluminum -- vinyl has similar durability properties with a lower initial cost -- and is typically considerably cheaper than wrought iron. However, you have to want the look of a painted fence, since vinyl fencing materials are currently available only in white, tan and gray. When shopping for vinyl fencing materials, remember that not all fences are created equal, and you typically get what you pay for. Carefully compare the manufacturer's specifications for the thickness of the vinyl, and look at how the components are constructed and structurally reinforced. Also, compare the length of the manufacturer's warranties, as well as how complete they are and what they cover. STYLES AND OPTIONS In a sure indicator of the rapidly growing popularity of vinyl fencing, there are an amazing number of styles and options now on the market to choose from. From traditional pickets to horse fencing to privacy enclosures, you will probably find a material available to match just about any style of fencing your imagination can conjure up. Some examples include: •Rail: This is the style that pretty much launched the vinyl fencing industry. Rail fences consist of upright posts that are either square or round, with two, three or four horizontal rails between them. A variation of this style is the cross-buck, which has a horizontal top and bottom rail and two angled rails between them in an X configuration. Standard rails are rectangular in section, matching standard 2x6 lumber, but there are also round rails available that offer the look of a welded iron fence and provide additional protection for horses and other animals that may rub against the rails. • Picket: Picture any variation of Tom Sawyer's famous fence, and you've got it. You can get picket fences in a variety of heights, and with pickets that are square, rectangular, round or octagonal, or that duplicate Victorian lathe-turned spindles. The tops of the pickets may be straight-cut, pointed, dog-eared, or rounded on top, or you may choose to cap them with any of a variety of caps from fleur de leis to balls. • Privacy: Privacy fences are typically 5 or 6 feet in height, and consist of solid panels that mimic the look of individual fence boards. Here again, there are dozens of board configurations that include traditional board fencing, good-neighbor styles, interlocking tongue and groove, and board-on-board styles. • Combinations: If you're looking to match a particular fence style or trying to create a unique one of your own, you can combine many types of vinyl fencing. For example, you can top a privacy panel with lattice, or combine two different sizes or styles of pickets. Installation of any type of vinyl fencing is pretty straightforward and requires only basic carpentry skills, but proper alignment of the posts is critical. Full installation instructions are provided from the manufacturer, so follow them carefully. Also, remember that there are building codes that apply to fences in certain applications, which may include such things as impact resistance and weight ratings -- be sure and discuss this with your fencing dealer and your local building department, and verify that the material you're using is correct for your particular application. |
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| Downside to high-efficiency furnace? By Paul Bianchina Q: Is a high-efficiency furnace more likely to break down compared to a mid- or low-efficiency one? A: High-efficiency furnaces, those with a rating of 82 percent to more than 96 percent efficiency, are designed to extract and utilize some of the waste heat that would otherwise be exhausted out through the flue. Accomplishing this task requires additional fans, valves and electronic controls within the furnace, and with more moving parts you have more things that can go wrong and therefore additional potential for breakdowns. However, I'm not aware of any substantial reliability issues that would cause me to shy away from purchasing a high-efficiency unit. I would get at least two bids from licensed, experienced HVAC contractors, and have each contractor bid both a mid-and a high-efficiency furnace that is correctly sized to your home. Look at the cost difference between the two efficiencies, and ask each contractor to calculate how long it will take for the energy savings from the more expensive high-efficiency unit to pay back its higher cost. You may find that the investment doesn't make financial sense for you. You also want to ask each contractor for reliability data for the brands of furnaces they carry, and also look at what the warranty is on the heat exchanger. The heat exchanger is the most expensive part of the furnace, and a long warranty -- say 20 years or more -- is often also a good indicator of how reliable the manufacturer feels the furnace is in general. Q: We have a two-story house that is about 12 years old that has had squeaky floors for nearly the whole time we've owned it. We are considering selling and would like to correct this problem before we start go to market. It seems that the two general contractors that we have talked to didn't sound confident they could correct the problem. I am sure the carpeting would have to come up. Do you have any suggestions? A: Floor squeaks, as you might imagine, are caused by two pieces of wood rubbing against each other, or by the wood rubbing against a fastener. The noise can actually come from a number of different sources, but since you mention that your house is fairly new and has carpeted floors, I'll stick with that scenario. First of all, you need to do a little more research. Walk around on the floor, locate as many of the squeaks as possible, and mark them on the floor with pieces of masking tape. If the squeaks are all occurring near walls, it is probably due to lumber shrinkage around the nails that hold the wall to the floor. This can usually be fixed by simply driving wooden shims between the top of the subfloor and the underside of the wall plate, which can be done without disturbing the floor covering or the trim. If the squeaks are not near walls, they are probably coming from movement between the subfloor and the floor joists below, which could come from inadequate nailing or insufficient or improperly applied adhesive. If the floor of the house was framed with solid lumber as opposed to I-joists, the noise can also be coming from wood that has dried out and twisted or pulled away from the wood or supports adjacent to it, causing movement -- and noise -- between the two pieces. For these squeaks, one of you will need to go under the house with a strong light and tape measure while the other one stays up top. Using measurements and pressure on the floor from walking, try to locate from underneath where the squeaks are coming from, and what -- if anything -- is going on in those areas. You may see the floor joists deflecting up and down; you may see them rubbing against other wood, or against ducts or pipes; or you may see that some of the supports under the joists are not fully touching one another. In the event of gaps between pieces of wood, you may be able to solve the problem by taking wooden shims, coating them with woodworker's glue, and driving them into the gaps with a hammer. If the wood is moving against a pipe or duct, you can correct that through the use of additional strapping to stop the movement. If you find a lot of areas where the subfloor seems to be moving up and down on the joists -- as opposed to them moving up and down together -- then the answer is probably going to be to drive screws down through the subfloor (from above) and into the joists. The best way to do this is to roll back the carpet and pad to access the subfloor underneath. There are also some products on the market that allow you to drive the screws down through the carpet itself and then snap them off below the carpet, but these are only effective if you have one or two squeaks in a confined area. Be aware also that driving anything down through the carpet may void the carpet manufacturer's warranty. |
| Refinance home to pay off credit card? By Benny Kass DEAR BENNY: We will soon have our mortgage paid off. Our home is valued at $120,000. Unfortunately, we owe about $50,000 in credit-card debt. I took early Social Security and work part time. My husband will take full Social Security next March and continue to work full time. So we had planned to pay extra on the debt with his Social Security check and the fact that we will no longer have a house payment. This will likely take at least two years. However, we wonder if it would be more beneficial to re-mortgage the house for the $50,000 to pay off all the credit-card debt. Obviously it would be a lower interest rate and would be an income tax deduction. What do you think? --Jean DEAR JEAN: No one wants to have mortgage debt, but sometimes you have no alternative. On the other hand, no one wants to be "house rich and cash poor." Interest rates are indeed quite low now, although there is no guarantee how long they will stay this way. While the interest you pay on your credit card is not deductible, mortgage interest up to a $1 million loan limit is. So it definitely makes sense to consider refinancing. You may also want to consider getting a home equity loan. This is a line of credit, which is why it is referred to as a HELOC (home equity line of credit). With a HELOC, you pay interest only on the amount of money you actually borrow; the rest of the money is available -- all you have to do is write a check. But many HELOC loans carry a variable interest rate. This means that the rate is not fixed, but will vary (i.e., change) as the money market fluctuates. You should discuss such a loan with your local banker and see if this meets your needs. One other suggestion: I have consistently maintained that a reverse mortgage should be considered as a last resort, but perhaps this is the time for you to consider such a loan. Talk with a financial advisor to get specific answers to your specific needs. DEAR BENNY: What is a "reverse mortgage" and how does it work? I will be 62 in December and my wife is 58. Our home was built in 1992. We currently have a 30-year fixed-rate mortgage with a balance of $145,000. The monthly payment is $900, and the current market value is approximately $300,000. I am retired and my wife works for the local school system. What are the advantages and disadvantages of a reverse mortgage? Who owns the house? Who gets the house if we should both die? If it goes to our beneficiaries (children), what are the tax issues? If we had a reverse mortgage could we still sell the house and downsize? Who gets proceeds from the sale? Where can one get a reverse mortgage? --Milan DEAR MILAN: Unfortunately, I have some bad news for you. In order to be eligible for such a mortgage, you and your wife must both be at least 62 years old. Because your wife is a young 58, you will have to wait four more years. A reverse mortgage is a loan to you based on the equity in your house. You can take the money out in one of three ways: (1) a lump sum, (2) monthly payments, or (3) a line of credit -- which gives you a checkbook on which you can write any amount, up to the loan limit. You and your wife would continue to own the house. When you sell it, move out or die, the house will have to be sold so that the loan will be paid. Alternatively, your heirs can keep the property if they are able to find other sources for this payoff. Any surplus over and above the amount of the mortgage is yours (or your heirs) to keep. Space in this column does not permit a full explanation. You will find a lot of helpful information on the Web, just by typing in "reverse mortgages" at your favorite search engine. I suggest, however, that you start with the AARP Web site for basic, impartial information. Benny L. Kass is a practicing attorney in Washington, D.C., and Maryland. No legal relationship is created by this column. |
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