Harleysville-Lansdale Real Estate and More: June 2010

This is an ever-relevant question, but a little scarier these days.  Many factors in the current market make this a difficult question, especially for homeowners who are currently at risk for losing their home because they can't afford their current mortgage payments or those that have suffered a loss or reduction of an income stream or those who have an adjustable rate mortgage due to "adjust" in the next few years. 

Mortgage companies have stricter guidelines and even consumers who are current on their payments could have difficulty refinancing their mortgage.

With interest rates still near all time lows, it begs the question for many homeowners whether or not they should refinance their mortgage.  The "right" answer depends on many factors.  And there are now two questions you must ask yourself:

• SHOULD I refinance?
• CAN I refinance?

SHOULD I refinance?  First and foremost, you need to determine if it even makes economic sense to refinance.  One of the most important pieces to this puzzle is the "break even analysis".  For this simple calculation, you'll need to know:

1. The costs to refinance
2. The projected savings of refinancing

The costs of the refinance are any upfront fees that you will have to pay and typically include fees for mortgage application/processing, title search/insurance, and recording fees.  To calculate the refinancing savings, subtract your projected new monthly payment from your current payment. 

Divide the costs by the projected monthly savings to determine the break even period (this is the minimum number of months that you will need to hold your new mortgage in order to recoup the refinancing costs).  The lower the break even period, the more sense it makes to refinance your mortgage. 

If you plan to hold the new mortgage for the foreseeable future, a break even period of 5 years or even more may still make the refinance worthwhile.  If you plan to only be in your home for the next 3 years, however, a 5 year break even period no longer looks attractive.

CAN I refinance?  But now the scary part, CAN you refinance even if you want to?  Important questions to consider: 

• Will you qualify for the new mortgage?  Has your income changed?  Is it documented? 
• How is your credit?  Is your current credit score high enough to qualify for the lowest interest rate?
• What is your house currently worth?  Do you have enough equity in the current market to avoid PMI?
• Are there any foreclosures or short sales in your neighborhood that could further hurt the appraisal of your home?
• Will you need to bring cash to settlement if you refinance?
• Does your current mortgage have a pre-payment penalty or a looming balloon payment? 
• What type of mortgage (fixed or adjustable rate) do you currently have and what type are you able to refinance into? 
• Do you need to get some equity out of your home?  Will the mortgage company allow a cash-out refinance?
• How many years are left to pay on your current mortgage?
• Are there any factors that would cause you to move in the foreseeable future?
• Will you be able to afford the new mortgage if any income streams change?

Refinancing can save you thousands of dollars.  But without a careful analysis, you could actually lose money or worsen your current situation.  In some cases, current economic factors may force you to stay with your current mortgage even if you could benefit from a refinance.

Talk to a real estate agent or a mortgage broker if you are considering a move or a refinance.  They can help guide you on what makes the most sense for your situation.

~Lisa

Contact Scott Loper, Associate Broker, Realtor®, RE/MAX Realty Group at 215-513-1333 for help buying or selling a home in Lansdale, Harleysville, Hatfield, Souderton, Skippack, Collegeville, North Wales and the surrounding areas of Montgomery County Pennsylvania. To Search for Homes For Sale in Montgomery County Click Here.

Is It Time To Refinance Your Mortgage? A Scary Question These Days Copyright © 2010, The Scott Loper Team, All rights reserved.

This is a very interesting article in the NY Times about a woman who transformed a hunting cabin in the woods into her dream Victorian Home (minus a kitchen, bathroom and heat).  Hard financial times fell on this couple, Sandra and Todd Foster, so they bought a piece of land in the Catskills region of New York State.  They primarily live out of a trailer on the property, but Sandra always dreamed of a cozy Victorian cottage and created her very own space in a small cabin that was existing on the property when they bought it.

What is inspiring about this story is the Foster's quest to find an affordable place they could call home and the path and life-experiences that brought them to the Catskills.  Sandra Foster does have a "real" job on Long Island and makes the long commute each day.  While their choices may not be for everyone, they created their own little slice of heaven and happily raise chickens and tend to their garden. 

"If you don't have a home, you don't have a sense of place, you don't have a life, you don't have a soul."

~Sandra Foster

Contact Scott Loper, Associate Broker, Realtor®, RE/MAX Realty Group at 215-513-1333 for help buying or selling a home in Lansdale, Harleysville, Hatfield, Souderton, Skippack, Collegeville, North Wales and the surrounding areas of Montgomery County Pennsylvania. To Search for Homes For Sale in Montgomery County Click Here.

Talk About Your Fixer Upper... Finding a Place to Call Home Copyright © 2010, The Scott Loper Team, All rights reserved.

Did you know that your credit score affects the premiums on your homeowner's insurance?

Just when you thought that your credit only affected major buying decisions such as a home or a car, you could be paying much higher premiums for both your homeowner's and auto insurance if you have a poor "insurance score".  An insurance score is a rating system that insurance companies use.  It is based on several "credit related" factors such as:

* Payment history and delinquencies

* Bankruptcy, foreclosure, and collection activity

* Length of credit history

* Debt ratio - Amount of debt in relation to credit limits

* Types of credit in use

* Number of new credit applications

Studies conducted by the insurance industry and several independent sources show that there is a distinct correlation between a person's credit history and the likelihood that a person will file an insurance claim. 

There are hundreds of factors that insurance companies will take into account when determining your premiums.  Insurance companies will consider your claims history, home (or auto) safety features, geographic area, deductibles, and insurance limits to name just a few.

Is it fair or unfair?  Could it be that people with immaculate credit are more likely to take better care of their homes?  Are they more likely to check their sump pump or repair their roof?  Are they less risky by nature and always follow the rules?  Does it indicate they have enough cash on hand that might make them think twice before making a claim?

To boost your credit score:

* Check your credit.  Make sure there aren't any errors or omissions.

* Do not apply for new credit of any kind unless you have no credit.  No credit is the same as bad credit. 

* Do not close credit card accounts or consolidate your debt.  This will raise your debt ratio.

* Do not max out any credit cards.  Try to keep the balances to

* Stay current on existing accounts and continue to use your credit as normal. 

A breakdown of your credit score:  35% Credit History, 30% Debt Ratio, 15% Credit Length, 10% Credit Type, 10% Inquiries

One last thought, if it has been a while since you applied for homeowner's or auto insurance (and you have excellent credit or better credit than when you first applied), it may be worth a call to your agent to rerun a quote for you.  It could save you a bundle!

~Lisa

Contact Scott Loper, Associate Broker, Realtor®, RE/MAX Realty Group at 215-513-1333 for help buying or selling a home in Lansdale, Harleysville, Hatfield, Souderton, Skippack, Collegeville, North Wales and the surrounding areas of Montgomery County Pennsylvania. To Search for Homes For Sale in Montgomery County Click Here.

What Does Your Credit Score Have To Do With Homeowner's Insurance? Copyright © 2010, The Scott Loper Team, All rights reserved.

Open House, Sunday, June 27th, 1-3pm

133 Brinkley Drive, Sellersville, PA (Hilltown Township, Bucks County)

Directions: From Route 113, turn onto Briarwood, make 1st left on Brinkley, house is on the left.

Price Reduced to $449,900! 

A great buy for this beautiful Bucks County neighborhood of 1+ acre homes.

For more information on Hilltown Woods, click here.

To see a virtual tour of 133 Brinkley Drive, click here.

New granite countertops in kitchen!

Beautiful inground pool with fence!

Additional open yard space.

Contact Scott Loper, Associate Broker, Realtor®, RE/MAX Realty Group at 215-513-1333 for help buying or selling a home in Lansdale, Harleysville, Hatfield, Souderton, Skippack, Collegeville, North Wales and the surrounding areas of Montgomery and Bucks Counties of Pennsylvania. To Search for Homes For Sale in Montgomery and Bucks Counties Click Here.

Open House - Sunday, June 27th - Hilltown Woods, Sellersville, PA - Home for Sale with Inground Pool Copyright © 2010, The Scott Loper Team, All rights reserved.

Last week...

This week...

Contact Scott Loper, Associate Broker, Realtor®, RE/MAX Realty Group at 215-513-1333 for help buying or selling a home in Lansdale, Harleysville, Hatfield, Souderton, Skippack, Collegeville, North Wales and the surrounding areas of Montgomery County Pennsylvania. To Search for Homes For Sale in Montgomery County Click Here.

Wordless Wednesday - Those Wascally Wabbits Ate My Petunias Copyright © 2010, The Scott Loper Team, All rights reserved.

As a followup to yesterday's blog, Damage Control: What to do Until Help Arrives, we wanted to do a piece on the leading causes of house fires.  They are:

1. Cooking and cooking equipment (accounts for 40% of all house fires)
2. Space heaters
3. Smoking
4. Electrical (behind the walls - faulty electrical wiring)
5. Electrical (lighting - mainly too high wattage of bulbs causing the lamp to catch fire or closet/attic bulbs with no protective covering causing nearby stored materials to catch fire)
6. Candles
7. Arson
8. Blocked dryer vents
9. Lightning
10. Fireplaces

So as you can see from this list, most but not all house fires are preventable.  Caution and common sense are needed for daily living to keep your home safe.  However, while some causes are readily apparant and caused by the actions of a homeowner, other are more onerous such as #4 faulty electrical wiring.

A loose connection can cause an electrical outlet or switch to catch fire.  One of the simplest things you can do to prevent a fire is to tighten up or replace old outlets and light switches.  If there is a loose or broken connection anywhere in an electric circuit, the electricity can jump across the void.  A void (or break) can be caused by loose connections, nicks in the wire's protective coating or any other insulators, or corrosion inside a connection.  In these cases, the electricity can jump or "arc" across the void.  In the void, the electricity actually ionizes the air around it to form a super-heated plasma. If there is anything the plasma can touch that is not fireproof, it can catch fire quickly and cause a fire.

What about GFCI's?

A GFCI (Ground Fault Circuit Interrupter) protects against ground faults and will not reduce the chance of a fire in the case of a loose connection.  GFCI's will keep someone from getting shocked or electrocuted if there is a ground fault.  Ground faults occur when a live wire breaks free and touches the device's metal case or when water enters an electrical outlet and can cause the conduction of electricity outside the outlet. GFCI's are typically required around sources of water (i.e. kitchens, bathrooms) and unfinished areas of the home (i.e. basements, garages).

What about circuit breakers?

A circuit breaker only protects against power surges, a short in a device, or too many devices connected.  It will not protect you against electrical shock and it will not necessarily protect against an electrical fire.  It would depend on the cause.  For example, if the circuit wire is not the correct gauge, the wire can still heat up and cause a fire whether or not you use a circuit breaker to protect against overload and the resultant heating.

Here are a few tips for preventing an outlet fire in your home:

1.  Check all outlets and switches once a year for looseness, corrosion or signs of malfunctioning.  Any spark coming from an outlet or switch when you plug/unplug a device or operate the switch is a red flag.  Correct any issues immediately or call an electrician. 

2.  Use plastic plugs to cover any unused receptacles. This will prevent/reduce the possible introduction of dust or lint (flammable materials) and water or humidity (corrosive material) into the outlet.

3.  Always use plastic or metal junction boxes and plate covers for any connection. The boxes and covers will shield nearby flammable material such as wood or insulation from any arcing that occurs within the junction box.

4.  Consider installing AFCIs (Arc Fault Circuit Interruptors).  These are different than GFCI's and can protect against the arcing caused from a loose/broken wire.  However, they are expensive and not commonly used.

Rule #1:  Never use water on an electrical fire.  Disconnect the power to the outlet/switch at the electric panel and call 911 immediately if you notice: 

• The area around an outlet or switch is warm or hot to the touch
• Any fire or smoke coming from the outlet or switch or smoke stains around it

With a little routine care and precaution, you can save your home and your family the tragedy of an unexpected electrical fire.

Contact Scott Loper, Associate Broker, Realtor®, RE/MAX Realty Group at 215-513-1333 for help buying or selling a home in Lansdale, Harleysville, Hatfield, Souderton, Skippack, Collegeville, North Wales and the surrounding areas of Montgomery County Pennsylvania. To Search for Homes For Sale in Montgomery County Click Here.

Preventing Outlet Fires In Your Home Copyright © 2010, The Scott Loper Team, All rights reserved.

When you least expect it, a sudden incident can cause major damage to your home. This can be in the form of fire and smoke damage or water damage from floods, sewage backups, a pipe rupture or most commonly, a sump pump failure. It is hard to know what to do first, who to call and how to handle the situation.

No one likes to think about it, but fire, smoke and water damage can happen in an instant. We have a good friend who works in damage restoration; he told us there are things you definitely do and don't want to do.  We thought we would share some of his tips with you:

The most important thing is to stay calm and do what is necessary to protect your safety and the safety of your family.  In the event of a fire, you should always call 911.  Even if you think you successfully put out a fire, you should have professionals evaluate the situation and ensure it is safe.  But then what to do? Fire and smoke damage can be pervasive throughout a home even if the fire is limited to one area. The smoke and soot can make its way everywhere. It is best to bring in a damage restoration company. Not only will they assist with the cleanup, they can help with moving items to storage, insurance claims and working with any other contractors needed to repair the home. For fire and smoke damage, you can and should:

1. Limit your movements in the home to prevent soot from becoming embedded in carpets and further soiling walls, woodwork and upholstery.
2. Lay down tarps, plastic or old towels in any high traffic areas.
3. Remove any plants or animals from the home. Wash down both sides of the leaves for houseplants. Clean any pets and make sure they have fresh air, water and food.
4. Leave the HVAC systems off until the system can be checked and filters changed.
5. If winter time, add RV antifreeze to sinks, toilet bowls, and tubs to avoid freezing pipes and fixtures.
6. Leave ceiling fans and other fans off. That will only circulate the soot.
7. If a refrigerator or freezer is not operating, you can remove the contents. Be careful salvaging any food that may have gone bad.

You should not:

1. Attempt to wash the walls and shampoo the carpets. Leave that work for the professionals. Improper cleaning can set the stains and odors.
2. Attempt to clean or operate any appliances that were too close to the fire, heat or water. Have them checked by an authorized repairman.
3. Use any light fixtures where the walls or ceiling have water or fire damage. The wiring may be wet or damaged.
4. Take garments to the dry cleaner. Improper cleaning can set odors.

In the event of water damage or contamination, it is imperative to determine if the water is clean or contaminated. Contaminated water may contain sewage, mud, blood/bodily fluids and mold or bacteria. Water damage from floods and sewer backups is likely to be contaminated. Under no circumstances should you attempt to clean up contaminated water. Stay out of the affected area until a damage restoration company or other help arrives.

If the water is clean (a sump pump backup or pipe rupture) and has not sat long enough to grow mold or other bacteria, you can take some steps on your own. For damage from clean water, you can and should:

1. Stop the source of the water if possible (shutoff the water main to the home).
2. Turn off the circuit breakers for the areas of the home that are wet. 
3. Move any furnishings and personal items to a safe, dry area. Towel off excess moisture from those items.  Remove excess moisture by wet vacuuming, bailing, mopping, and blotting.
4. Place wooden blocks or aluminum foil between any remaining furniture legs and wet carpeting, and pin up any curtains and furniture skirts to keep them from touching the wet carpeting.
5. Run a dehumidifier. However, keep the windows closed. Open windows will only add to the humidity in the air.

You should not:

1. Walk through standing water if there is a chance of electrical shock. Do not enter the area if there are outlets, switches, circuit breakers or electrical equipment/ appliances that may be submerged.
2. Leave colorful area rugs or books, newspapers on wet carpets or floors. These items may cause permanent staining.
3. Use a household vacuum cleaner even on a damp surface. This can cause an electrical shock.
4. Use any light fixtures where the walls or ceilings have water damage.
5. Use TV’s or other appliances while standing on wet surfaces.
6. Assume you can do this without some professional help. Moisture may seep into trimwork and drywall. This may cause mold issues down the road.

Hopefully a major loss will not happen to you and your family, but it is always better to be prepared and to have an idea of what to do.

Contact Scott Loper, Associate Broker, Realtor®, RE/MAX Realty Group at 215-513-1333 for help buying or selling a home in Lansdale, Harleysville, Hatfield, Souderton, Skippack, Collegeville, North Wales and the surrounding areas of Montgomery County Pennsylvania. To Search for Homes For Sale in Montgomery County Click Here.

Damage Control: What To Do Until Help Arrives Copyright © 2010, The Scott Loper Team, All rights reserved.

Last week I wrote a letter to Senators Bob Casey and Arlen Specter of Pennsylvania expressing my opposition to a provision written into a bill currently under review by the Senate.  The bill is called American Jobs and Closing Tax Loopholes Act. 

Sounds great, doesn't it?  No one wants people to get away from paying their taxes because of a "loophole."  The problem is many of the so-called loopholes are not really loopholes; they have legitimate purposes to help grow small businesses.  They are touted as loopholes to give the bill broad appeal.

This legislation will negatively affect EVERY real estate agent and broker who has established an S-Corporation as well as thousands of other small businesses in the U.S.

But we can argue the merits of the bill another time or not at all.  I don't wish to discuss politics per se. 

My frustration stems from the fact that 1) Senator Casey clearly did not read my letter and is pushing full steam ahead to pass the legislation and 2) Senator Specter has not even bothered to respond.

Here is my letter:

Dear Senator Casey,

It has been brought to my attention that the bill (H.R. 4213) currently being reviewed by the Senate contains provisions which would essentially eliminate the exclusion of Social Security and Medicare taxes from distributions taken by many small businesses (like mine) operating as an S-Corp.  Although this may be presented as "closing a loophole," it nothing less than a significant tax increase on hardworking, small business owners like myself.  

I am writing to let you know of my strong opposition to this provision in H.R. 4213 and to ask that you not vote for this bill without amendment to remove this provision. 

Congress needs to first cut spending and entitlement programs and not continually look to hardworking taxpayers as an infinite source of revenue with which to play politics and buy votes.  Please do the right thing with this bill and vote to not strap small businesses and families like mine with this significant and unfair tax increase.

Sincerely,

Lisa Loper

Lansdale, PA

Did he even read my letter?  Does he even understand what "loopholes" he is closing? 

Here was his "canned" response... which has no reference to my concern... why did I waste my time?

Dear Mrs. Loper:

Thank you for taking the time to contact me about H.R. 4213, the American Jobs and Closing Tax Loopholes Act.  I appreciate hearing from you about this issue.

Currently, the Senate is considering the American Jobs and Closing Tax Loopholes Act.  This bill includes numerous provisions ranging from an extension of important tax provisions that assist small businesses to emergency assistance for individuals and state governments.  Below please find a brief overview of some of the key provisions:

Preventing Outsourcing includes a package of provisions to curtail abuses of the U.S. foreign tax credit system and prevent companies from benefiting by sending jobs overseas.

Tax Cuts for American Families and Workers puts money back in the pockets of working families through a tax cut for college tuition, property and sales tax deductions, and a tax cut for energy-efficient homes.

Job Creating Tax Incentives renews a number of tax credits for businesses, including: the research and development credit, enhanced capital investment depreciation, and tax cuts for small businesses that continue to pay military reservists that have been called to active duty.

Disaster Relief Measures provides funding for oil spill response, National Flood Insurance, and mine safety, among other provisions.

Youth Summer Jobs supports over 350,000 jobs for youth ages 14 to 24 through successful summer employment programs.

Extension of Emergency Unemployment Compensation (EUC) extends EUC through November 30, 2010.

There are numerous other provisions included in the American Jobs and Closing Tax Loopholes Act.  For a summary and a link to the full text of the legislation, please visit http://finance.senate.gov/.  In addition, please note that the bill in its current form does not include an extension of the COBRA Premium Assistance Program.  However, I have introduced an amendment, along with 27 other Senators, which would continue the program through November.  As we recover from the economic recession, we must continue to support vital safety net programs, such as the COBRA Premium Assistance Program, that our citizens need to support their families.

I am aware that there is an urgency to pass H.R. 4213, as a number of the programs included in the legislation have expired.  Please be assured that I am working with my colleagues to overcome opposition from Republicans to provide these beneficial programs.  I am committed to seeing this bill passed.  

Again, thank you for sharing your thoughts with me.  Please do not hesitate to contact me in the future about this or any other matter of importance to you.

If you have access to the Internet, I encourage you to visit my web site, http://casey.senate.gov.  I invite you to use this online office as a comprehensive resource to stay up-to-date on my work in Washington, request assistance from my office or share with me your thoughts on the issues that matter most to you and to Pennsylvania.

Sincerely,

Bob Casey

United States Senator

Contact Scott Loper, Associate Broker, Realtor®, RE/MAX Realty Group at 215-513-1333 for help buying or selling a home in Lansdale, Harleysville, Hatfield, Souderton, Skippack, Collegeville, North Wales and the surrounding areas of Montgomery County Pennsylvania. To Search for Homes For Sale in Montgomery County Click Here.

American Jobs and Closing Tax Loopholes Act - Writing to Congress is a Worthless Endeavor - What's the Point? Copyright © 2010, The Scott Loper Team, All rights reserved.

Nestled in the heart of Towamencin Township (Lansdale, PA) since 1972 is Freddy Hill Farm and Freddy's Family Fun Center. 

At the Freddy Hill farm store, you can get homemade ice cream by the scoop or by the half gallon to take home.  The store also offers milk produced right on site - it is the freshest, best tasting milk around.

You can also pick up eggs, butter, cream plus Amish baked goods brought in daily from Lancaster.  The store also has some seasonal produce, country decorations and nicknacks, annuals, pumpkins and hay bales depending upon the season.

While enjoying your ice cream, you can walk through the farm and see the many farm animals such as cows, pigs, goats, and chickens.

Every kid's favorite part (and some big kid's too) is the Freddy Hill family fun center.  At the fun center, there are two 18-hole miniature golf courses with bridges, waterfalls, rock formations and windmills.  It is beautiful day and night.  In the evening, the courses light up for great after dinner entertainment.

Also at the family center, Freddy Hill offers batting cages.  From slow to fast pitch baseball and softball, this is the perfect environment for players of all ages to improve their batting skills.

There is also a terrific driving range and pro golf shop for the golfing enthusiast.

A large pavillion is available for birthday and family parties.  Freddy Hill will also accommodate corporate events.

During the fall, Freddy Hill hosts its Fall Fest complete with a cornfield maze and giant slide, hayrides to the pumpkin patch where you can "pick your own," and pig races.

So for great family fun, try Freddy's.  Freddy Hill Farm and Freddy's Family Fun Center in Lansdale, PA.

Contact Scott Loper, Associate Broker, Realtor®, RE/MAX Realty Group at 215-513-1333 for help buying or selling a home in Lansdale, Harleysville, Hatfield, Souderton, Skippack, Collegeville, North Wales and the surrounding areas of Montgomery County Pennsylvania. To Search for Homes For Sale in Montgomery County Click Here.

Family Fun at Freddy Hill Farm and Fun Center, Lansdale, PA Copyright © 2010, The Scott Loper Team, All rights reserved.

This is a recreation of an actual photo that was in our local MLS - front end of the car and all.  The listing has been on the market for six months... with no change in the photo.

~Lisa

Contact Scott Loper, Associate Broker, Realtor®, RE/MAX Realty Group at 215-513-1333 for help buying or selling a home in Lansdale, Harleysville, Hatfield, Souderton, Skippack, Collegeville, North Wales and the surrounding areas of Montgomery County Pennsylvania. To Search for Homes For Sale in Montgomery County Click Here.

Maybe Some Realtors Are Too Busy For Your Referrals Copyright © 2010, The Scott Loper Team, All rights reserved.