Staying Cool

New Fannie Mae Mortgage Policy
A new policy instituted by Fannie Mae this summer is making it tougher for some home buyers to close on their deals. The mortgage giant is now encouraging lenders to check buyers’ credit reports a second time just before their loans close, to make sure buyers haven’t taken on any additional debt , such as a new car loan, that could hamper their ability to pay their new mortgage.

According to the Washington Post, the new policy is receiving some hard pushback from lenders. They argue that it is creating logistical nightmares and is tripping up many home sales at a critical point in the housing market’s struggle to recover from the recession. According to lenders, even small, short term loans could skew many borrowers’ credit profiles just enough to keep their pre-approved mortgage loans from going through. Since credit reports only offer a small snapshot in time, they can be especially misleading at closing because borrowers are putting extra strain on their credit to pay for movers, furniture, and appliances.

After hearing these concerns from lenders, Fannie Mae now says it will review the policy.

And remember, we also saw record lows in mortgage interest rates in June, bottoming out at 4.74%, according to Freddie Mac. For those of you keeping score, that mortgage rate was 5.42% in June last year.

Now, how about prices across the nation in June? The national median existing-home price for all housing types was $183,700 last month, which is in fact, 1% higher than a year ago.

Now let’s break down these figures for you region-by-region

Starting in the Northeast, existing-home sales actually rose nearly 8% to an annual level of 960,000 in June and are over 17% above June 2009. That’s good news for sales in the Northeast, though the median price for June was $244,300, down just over a percentage point from a year ago.

Existing-home sales in the Midwest dropped 7.5% in June to a pace of 1.23 million but are still nearly 12% higher than a year ago. The median price in the Midwest was $155,900, down a trifling 0.1% from June 2009.

There are some solid numbers in the South, where existing-home sales fell 6.5% to an annual level of just a hair over 2 million in June, but are exactly 11% above June 2009. The median price in the South was $163,600, unchanged from a year ago.

Existing-home sales in the West saw the biggest drop of just over 9% to an annual pace of 1.17 million in June, but are still about 1% higher than a year ago. And though sales were down, the West did see a median price gain to $221,800. That’s up 1.5% from June 2009.

2. Save while away: Install an ENERGY STAR® qualified programmable thermostat with pre-programmed settings. When used properly, an ENERGY STAR® programmable thermostat can cut heating and cooling bills by $100 a year.

Put in a window A/C unit and monitor appliances. Window air conditioners that can quickly cool that boiling bedroom or sweltering living room can be bought for less than $150. An ENERGY STAR® qualified air conditioning unit uses 25-40% less energy than a 10 year-old model and spreads cool air more effectively through the home.

Look for A/C units that are properly sized to the home as oversized units waste energy. Also, change A/C filters once a month during the summer months to keep the unit running efficiently. To save even more money and use less energy, check the temperatures of your refrigerator and freezer because they can get stressed during extreme heat. Also, give your refrigerator some breathing room. Allow at least one inch of space on each side of the refrigerator to avoid increasing energy consumption by 10%.

3. Keep cool air in. Prevent hot air from entering the home and keep the cool air inside by using caulk and weather-stripping around windows and doors. Concentrate on other hot spot areas such as basements, crawl spaces and attics. This project is quick and easy and can save up to 10% on cooling bills by keeping the hot air out and preventing the comfortable, cool air from escaping.

4. Remove moisture from the air. A dehumidifier can make an instant temperature difference in how a home feels on humid days. Drier air will make the home feel cooler, particularly in areas that have inadequate ventilation.

Use an ENERGY STAR® dehumidifier to save energy and money. Air with less humidity feels cooler and helps prevents mold and mildew.

5. Stay cool outside. Whether you are tailgating or hosting guests for a backyard barbecue, stay cool by utilizing the area under a tall deck or by placing canopies in the yard. A backyard canopy can comfortably shade eight people and is fast and easy to install. Bring out portable fans to keep the air circulating and to provide a slight breeze.

For more tips on how to cool the home, visit www.Lowes.com/energy. And as we said, these top five tips for staying cool are brought to you by Lowe’s.

The masses were introduced to air cooling in movie theaters during the Great Depression, when theater owners, anxious to draw business, gave customers an enjoyable, affordable source of relief: spending summer days in cool, dark comfort with a newsreel and a double feature!

But before World War II, air conditioning at home was virtually unheard of. In fact, homes were built, and lifestyles were specifically created with natural air cooling in mind. High ceilings and attics gave hot air a place to settle, while ceiling fans pushed the air around for gentle breezes.

Back in the day, a summer night’s entertainment involved sitting on the wide front porch and visiting with the neighbors over a tall glass of lemonade, because it was far more comfortable than sitting inside. Some people even slept on the porch during the worst of the summer heat.

In urban areas, neighbors would spend their evenings on the front stoop for the same reason, and apartment dwellers would sometimes take to the fire escape to get away from the heat.
On weekends, Americans would flock to the beach, the lake, or to the swimming pool — not just as a means of recreation, but really, as a means of relief. And Americans did not just come up with the notion of picnics simply because they enjoyed sharing their food with ants and Mother Nature. We were eating outdoors long before the cool kids were calling it “dining al fresco”.

For better or worse, many of those coping devices began to fade away, as the hum of air conditioning compressors began to fill the air across the country.

Air conditioning today is not a luxury at all, but really a necessity for millions of Americans. Can you imagine living in Arizona, Nevada, or even Florida without the wonders of Freon and its more environmentally friendly descendants? There’s no doubt that places like Phoenix and Las Vegas owe their very existence, at least in their current forms, to mechanical refrigeration.

More than a century after the first modern device was created to cool and dry the air, a movement is on to encourage Americans to limit, or even discontinue, the use of air conditioning. The idea is that both money and energy can be saved, and many folks are finding they are more tolerant of a little heat than they ever thought possible.

Still, no matter what, it’s nice to know that a you can change a hot, sweaty, sweltering night into a cool, dry oasis of comfort with just one little push of your AC unit’s ’on’ button.

And all of us here at Real Estate Today, hope you find the perfect way to stay cool all summer long!