Home Ownership

The highest mortgage interest rates in decades have made many homeowners reluctant to sell. That has led to a lower inventory of existing homes for buyers to choose from. As a result, new home construction is booming. Here’s what you need to know about home builders’ activity....

Homeowners aren’t moving on

Historically, many houses have become available as homeowners buy new homes and put their existing houses on the market. But today, many homeowners, whose current mortgages may have an interest rate of around three percent, know they will pay a much higher rate if they buy a new home. This has discouraged them from selling and lowered the inventory of listed homes. In response, home builders have seized an advantage by stepping up new home construction....

Home builders have competitive advantages

Home builders of new construction homes can offer incentives to buyers that sellers of existing homes are hard-pressed to match. Builders can:...

Provide buyers with an allowance for adding upgraded features.
Help with closing costs if the buyer uses the builder’s preferred mortgage company.
Offer to buy down mortgage points for the first few years, again if the buyer uses the preferred lender.
Offer variations on floor plans, façades, lot sizes, and more.
Provide a tiered warranty for as long as 10 years, starting with wall-to-wall, 100 percent coverage the first year.

An existing homeowner with one house to sell cannot match the scale builders have for offering such incentives. ...

Townhomes and condos are particularly appealing

New construction home builders also focus on properties of particular interest to the youngest and oldest buyers. Both groups are looking for places to live that are less expensive than traditional single-family homes, which has led to big increases in sales for new townhomes and condominiums....

With the financial incentives often available on new construction townhomes or condos, even the youngest buyers can afford a first home. Baby boomers may be able to buy such homes without a mortgage by using the equity from selling their single-family homes. ...

Townhomes and condos also appeal because they require little to no exterior maintenance. Buying a traditional single-family home means signing up for every aspect of outside maintenance, from exterior painting to gutter cleaning and lawn mowing. Not so with townhomes or condominiums. Their owners need to maintain only what’s within their walls because the homeowners association generally handles all exterior maintenance and upkeep....

It’s May, which means summer is almost here. Before you can relax with a cool drink by the pool, get these home maintenance chores done....

✔ Repair wooden fences and decks. Repair or replace damaged boards, posts or cross beams. Check under the deck for signs of any nesting animals and clear out debris....

✔ Prep the grill. If you’ve resisted the thrill of the grill so far, wait no longer. Pull the cover off and wipe down the outside hood, knobs and handles with a mix of vinegar and water. Take inventory of your propane or charcoal. Scrub the grill grates to get them ready for the first cook out....

✔ Set up patio area. Hose off outdoor furniture that has been left outside. Set up furniture and decor that has been stored inside all winter. Check cushions and replace, if necessary....

✔ Mulch flowerbeds. A four-inch layer of mulch is needed to insulate plant roots from extreme temperatures such as the upcoming summer heat. It also keeps precious moisture in the soil and slow releases micronutrients to feed your plants....

✔ Spring clean. On a warm day in April or May, depending on your climate, open up the windows and air out your home. Have carpets, upholstered furniture and fabric window treatments cleaned. Vacuum window blinds and behind large furniture pieces. If you haven’t already, clean windows and repair any broken screens....

✔ Time for an AC inspection. The hot summer is right around the corner, so it’s time to have your air-conditioning system professionally inspected. A service technician will inspect the air handler, clean the air conditioner condenser coils, inspect the evaporator coil and check the refrigerant level. (Many companies offer an annual package deal that includes the spring check along with a similar fall furnace tune-up.) Depending on where you call home, this chore can be done in April, May or June. Meanwhile, do your part to keep the AC system running smoothly. Change the filters on a regular schedule. Outside, keep bushes cut back from the condenser coils so they can breathe....

Residential architectural styles have evolved over generations, but some looks are evergreen. These ten timeless home designs are classics that appeal to every generation of homeowners. ...

Colonial

Colonial homes, first built in the 1600s in the American colonies, are still popular among American homeowners. These multistory houses are stately, with columns, divided-pane windows, shutters, chimneys and classic lines. The colonial architectural style has brick or wood exteriors....

Cape Cod

As with colonials, the Cape Cod style dates back to the 1600s in New England. Cape Cods are simple box-shaped homes with one or two stories, steep roofs, plank siding, windows flanking the front door and dormer windows up top. A fireplace chimney is often placed centrally in the house. Cape Cod homes are classic, clean and very American....

Federal

The Federal is the look to which colonial styles transitioned in the late eighteenth century. It still bears some colonial lines but has more decorative elements, dual chimneys at each end of the house, and brick siding. ...

Victorian

Named for England’s long-reigning nineteenth-century queen, Victorian homes boomed in America in the late 1800s through the early twentieth century. These houses have dramatic lines, cornices, gables, garrets, dormers, steep roofs, large front porches and intricate “gingerbread” flourishes. Some loyalists still love this flamboyant look, while many Americans have moved on to less busy-looking designs....

Craftsman

First appearing in the early twentieth century, Craftsman homes have seen a revival in the last 15 years. They feature plank siding, low roofs, dormers, roomy front porches, and squared porch columns....

Mediterranean

Popular across the South in states like Florida and Arizona, Mediterranean homes capture the flavor of Italy and Spain. They have stucco siding, tile roofs, and earth-tone colors. Their tile floors and open rooms provide expansive living spaces....

Ranch

The Ranch design began in the 1930s and spread rapidly across the U.S. Its look is ultra simple: long across the front, with perhaps an “L” section at one end. The Ranch roof is low and has little pitch. These homes are generally one story. The front has no dormers, cornices or porticos. Ranch homes are clean, simple and still popular....

Mid-Century Modern

From the 1940s through the 1960s, Americans embraced European-style minimalist homes with straight, clean lines and low roofs, such as the ranch style. Mid-century Modern houses have open floor plans, large windows, and a central hallway that runs the length of the home....

Modern Farmhouse

The Modern Farmhouse look has swept the country in the last fifteen years. These homes have clean lines, whiteboard-and-batten siding, dark metal roofs and wide porches. Modern farmhouses have an open design, with barn doors separating some rooms. ...

Contemporary

Contemporary homes are hard to pin to a period because they continually change. A Contemporary house built in the 1990s may look quite different from one constructed in the 2010s. Common to all Contemporary homes are square lines, low roofs, lots of glass, expansive rooms and large kitchens....

The real estate agent is bringing a potential buyer to see your 1970s house. You’ve never updated your home’s decor because you love its retro look. Unfortunately, that buyer may see nothing but remodeling expenses around every corner. What should you do about outdated home decor?...

The “dirty dozen” of outdated home decor

Older homes reflect all sorts of design trends that are no longer stylish, but buyers may find the following features particularly unappealing....

Popcorn ceilings are passe and often cannot be scraped off. If installed before 1980, the material may contain asbestos, and remediation to remove it will be expensive.

Wall-to-wall carpet harbors dust, pollen, and other indoor allergens, is expensive to clean and can look tired. Hard surface floors predominate now, are cheaper to clean, and do not harbor airborne irritants.

Vinyl flooring screams 1970s. Today’s LVP floors are also easy to maintain but have a much more modern look.

Bold wallpaper and borders with their swirling paisleys, twining flower prints and Dickens-era Victorian carriage scenes date a house. Today’s buyers want walls painted in understated neutral colors or papered in patterns that don’t beg for attention.

Wood-paneled walls have been kicked to the curb alongside loud wallpaper.

Garden tubs in the primary bathroom were popular from the 1970s through the early 2000s. But how often do you draw up 50 gallons of water for a bath? Homeowners rarely use these tubs, and they take up valuable floor space.

Floor-length lined curtains dampen natural lighting. Today’s homes feature window treatments that offer privacy but let in lots of outdoor light.

Half-walls in entryways and baths serve no purpose. It’s better to go all in on the open concept and ditch them.

Top-to-bottom mirrored sliding closet doors make a room look bigger but are out of style.

Analog thermostats with sliding tabs have been replaced with smart home thermostats that lower monthly energy bills.

Carpeted bathrooms were never a good idea. If the bathtub or toilet overflows – yikes!

Tile countertops can crack, and homeowners have to scrub grout lines to remove food stains.

Should you remodel before selling?

If you are about to list a home with outdated decor, it’s best to let potential buyers decide what to remodel after they own the house. Be prepared, however, to make price or other concessions to seal the deal on a dated house. A better option is to freshen outdated home decor long before you sell so that you can enjoy the new look. ...

Working with a real estate agent when buying a home will save you both time and money. The more complicated the move, the more helpful an agent can be. Here are seven advantages to having an agent guide you through the home-purchasing process....

Time saver. Searching for the right home is time-consuming, and your real estate agent’s job is to listen to your preferences, screen homes, and select the ones that most closely fit your needs and budget, making the process more efficient for you.
Market savvy. Which neighborhood should you buy in? How are home prices, relative to surrounding areas? Agents watch the housing market as it shifts, meaning they can give you well-informed advice.
Well connected. Part of a real estate agent’s job includes networking and business development. They build partnerships with key real estate professionals such as appraisers, inspectors, closing attorneys, and lenders. This is especially helpful to buyers who are moving to an unfamiliar area or who need information on down-payment assistance or a lender who specializes in financing options for veterans, teachers, police officers or firefighters like Hometown Heroes.
Pricing expert. An agent will perform a comparable market analysis (CMA) that will confirm if the asking price is reasonable for the property in that locality. That information, along with your agent’s knowledge of the latest market trends, will help you formulate an offer. While pricing information is readily available online, remember those are estimated prices that have not been verified.
Advocate. Home buying and selling take a high degree of attention to detail, and your real estate agent is trained to manage all the variables. If buying includes relocating to an unfamiliar area, an agent is a key resource for information on the community and schools. Agents also help buyers keep emotions in check when anxiety over a pending move makes it difficult to be objective.
Expert negotiator. When it’s time to make an offer, your agent will handle all the phone calls, freeing up your time and energy. They will sift through and communicate the details you need to know, and will present your terms to the seller. As an intermediary, your agent will guide the negotiation process to get the best price and terms for you, including seller concessions to fix items.
Transaction manager. An agent’s true worth shows in the ability to navigate the complicated documentation required to make offers, draw up contracts, catch errors, and successfully close on your purchase.

Designing a home landscape yourself may seem overwhelming. How do you even know where to start? But working step by step, you can handle the job. Here’s how to develop and implement a charming DIY landscape design in your outdoor space....

Step one: Learn the lay of the land

Before turning a spade of dirt, you must plan. Begin by familiarizing yourself with your property. On which sides does the sun rise and set? Does your backyard get the morning or afternoon sun? From what direction does the wind most often blow? How do your house and trees cast shade throughout the day? During periods of heavy rain, does water pond on your property? ...

Spend time getting to know the characteristics of your land and house. Sit outside at different times of the day, noting the patterns of sun and shade. This information will help you choose your property’s best design and plants....

Prioritize your landscape design needs

Do your kids need a play space? Do you want to entertain with an outdoor kitchen on a patio or deck? Do you want to raise a vegetable or a flower garden? Decide what is important to you and where to place features, incorporating the knowledge you’ve gained about your property through observation....

Take out your number two pencil and sketch

Use graph paper to draw the footprint of your house and the property boundaries. Next, sketch the layout you envision for placing flower beds, lawn areas, playscapes, outdoor kitchens, and more. Start with the features closest to the house and work your way outward to ensure you plan everything to the proper scale. Contour features around the footprint of your home and the property lines to allow for easy foot traffic. ...

Research plants

Now, the fun part begins: choosing the plants you’ll use to beautify your property. Buy books on gardening and landscaping or browse pictures online to find the kinds of trees, bushes, and bedding plants that please you....

Note the important characteristics of each plant you choose to ensure it will work in your landscape....

How much sun/shade does each plant need?
Are your flower choices annuals (plants that live one year only) or perennials (plants that return each year)?
How much water do your choices need?
Are your tree choices evergreen (always have leaves/needles) or deciduous (drops leaves in winter)?

Using your landscape sketch, pencil in the plants you want in each area. Be aware of the spacing needed between each species of plant....

Consult with a professional nursery

Take your DIY landscape design sketch and pictures to an independent professional nursery staffed with knowledgeable people. Big-box home improvement store personnel will not have the necessary training and experience. The nursery employees may affirm your plant choices or steer you to alternatives. Trust their advice....

You might also take a sandwich bag of your soil so the nursery can advise you on what you may need to add to your dirt to create the best growing conditions....

Purchase your plants and any soil, compost, or other additives you may need, then head home and bring your beautiful new DIY landscape design to life....

Spring and summer bring fresh air, lightness, and a sense of rebirth as the world comes alive again after hibernating. Check out these easy home design tips for the warmer months....

Warm Month Colors

Spring and summer traditionally mean pastels, but don’t let that stop you from using bold, vibrant colors. Yellows, golds, greens – you’ll find all of these reflected in nature, and they’re good choices for freshening your home design for the warmer months. Also watch for blue/green hues and softer, more muted versions of some primary colors to lead the way in 2020. Consider painting a focal point wall in a bathroom or living room in a trendy color to change up your interior, then coordinate with throw pillows and accessories....

Wreaths

Wreaths for your front door or inside the house make a simple and easy element to switch out as the seasons change. Use ribbons and other materials in bright colors along with other season-appropriate materials. Wildflowers, bird nests and eggs, tulips, daffodils – pick the elements that say spring to you and incorporate them into your décor....

Table décor

Linens should be swapped out and washed regularly, especially if they’re used frequently, and a change of season makes the perfect time to switch. Put away those fall- and winter-themed centerpieces and opt for fresh flowers instead. Keeping the blooms changed out with new ones will bring a sense of life and lightness to the room, as well as some color. Use a spring- or summer-based theme and create table arrangements around it for both casual and formal dining areas. Also add glasses appropriate for cold mixed drinks like margaritas to your table settings or bar area for easy access....

Bedrooms and bathrooms

You can put away those heavy down or down-alternative comforters in exchange for lighter-weight quilts. Likewise, swap out the flannel or jersey sheet sets for cotton ones, which breathe more easily during warmer months. For your bathroom, think about towels and rugs in brighter colors. Botanical artwork featuring seasonal plants and colors can quickly update your rooms and coordinate with bedding and towels....

Living rooms

Unless your home stays cold, you can probably put the heavy throws away in a blanket chest or closet. Clean them first before storing inside bags to keep dust mites from collecting. Replace them with a lightweight throw in a soft texture like chenille, which will make your seating area appear more inviting, even if it isn’t used much. Use season-appropriate plants in living rooms and choose airy window treatments like sheers to open up the space and let light in....

A few words strike fear in a homeowner’s heart, such as “termites.” These pests cause about $5 billion in property damage yearly in the U.S. Protecting against infestation is vital. Here are four signs termites may be munching on your home....

Types of termite species

There are thousands of termite species, but in the U.S., three are the most common. ...

The subterranean termite causes the most damage and is found in every state except Alaska.
Dampwood termites are attracted to wood with a high moisture content and are found near the Pacific Coast, in the southwest, and southern Florida.
Drywood termites are found primarily in the South.

Unlike carpenter ants, which also destroy wood, termites actually eat wood fibers. Carpenter ants burrow into the wood to nest. ...

What do termites look like?

You can find pictures online. Typically, termites are long-bodied and whitish to amber in color, resembling ants. Sometimes, you will see very long wings, much longer than their bodies....

The four signs you may have termites

Mud tubes are tunnel pathways that subterranean termites use to move from the soil to a source of wood. If you see veins of mud tubes running from the ground up the concrete side of your foundation to a crack leading into the wall, you probably have termites.
Swarmers are termites that temporarily present themselves to the open air. If you’ve researched what termites look like, you’ll recognize their long wings or find discarded wings. Look around windowsills and door frames.
Piles of droppings, or frass, at cracks and seams leading to wood frames and trim boards signify infestation.
Windowsills, door frames, and baseboards that make a hollow sound when tapped or are mushy when pressed are also signs of an infestation.

Prevention

As with most things, prevention is better than cure. Don’t stack lumber or firewood next to your house. If you build a wood deck attached to your home, mount all posts on concrete piers or place them on concrete blocks.
Watch for leaks around outdoor faucets, which attract termites and carpenter ants.
Hire a professional pest control company and contract with them for scheduled prevention treatment. Make sure they offer a warranty for their services.

Treating an infestation

Treatment could involve hitting pockets of colonies or tenting the entire house and gassing, depending on the extent of the infestation. The cost could range from $500 to $2,500 or more....

Getting your first home mortgage can be intimidating. Let’s eliminate fear of the unknown by answering some common questions....

Q: Can I get a mortgage even though I have bad credit?

Yes, though you’ll get better interest rates with a good credit rating. With conventional financing you can get a loan with a FICO credit score as low as 620. (You can get a government Federal Housing Administration (FHA) loan with a score of 580.) To hedge against the greater risk of default with borrowers whose credit scores are relatively low, mortgage companies charge them a higher interest rate....

Though it’s possible to get a mortgage with bad credit, remember that the difference in interest paid over the life of a loan with a higher interest rate is tens of thousands of dollars. If you know you have troubled credit, it’s important to work diligently to pay your debts on time and reduce overall debt before applying for a mortgage. This may mean you have to delay a home purchase, but you’ll save big in the long run....

Q: Can I put down less than 20 percent on a home?

Yes, but again, this can cost you in the long run....

You can put down as little as 3 percent on conventional loans and 3.5 percent on FHA. But if you put down less than 20 percent on these loans, mortgage companies consider you a credit risk and will require you to pay monthly for a mortgage insurance policy that protects them from the risk you’ll default. Lenders view borrowers who put down 20 percent or more as a lower default risk because they have a bigger stake in the house and their monthly payments will be more manageable. Paying for mortgage insurance, which is required until the borrower has a 20 percent stake in the home, uses money that could be going toward building equity....

You can pay nothing down on Veterans Administration (VA) and United States Department of Agricultural (USDA) loans....

Q: Should I choose a fixed-rate or an adjustable-rate mortgage?

The answer depends on your personal circumstances and the interest rate environment....

When interest rates are low, most people choose a fixed-rate loan to lock in a low rate for the life of the loan. The upside with fixed-rate loans is that you’re protected against a rate hike when interest rates rise. The risk is that if rates go down, you’ll be missing out on lower payments. Refinancing, however, is always an option in this situation....

With an adjustable-rate mortgage (ARM), your loan begins with an interest rate below prevailing rates, and at a predetermined time, ranging from a few months to five years, the interest rate rises. Usually these loans offer a cap on the highest rate allowed. ARMs are described by their adjustment period, such as a three-year ARM....

The risk with an ARM is that the rate adjustment will happen when interest rates are rising. An ARM might work for you if you know that you plan to sell the house before the adjustment happens. Otherwise, ARM borrowers run the risk of being unable to handle the higher payment in the future. If the adjustment occurs when interest rates are falling, an ARM could actually save you money by lowering the interest rate at which the loan began....

The lender must give you a very detailed description of your loan’s terms, so read carefully and consult a financial adviser if you aren’t sure what to do....

Q: How do I find a reputable lender?

Your mortgage search should begin before your house search....

There are three main types of mortgage lenders: banks, credit unions and independent mortgage brokers. Ask your real estate agent, friends and family, and research online. Read customer reviews and compare interest rates. Understand that the rates shown are estimates and can vary according to your financial profile....

Choose three lenders and make phone calls. Ask about underwriting, the ease of application and costs such as application fees, loan origination fees, appraisal fees, credit report and points. Ask whether the lender will waive any of these costs or roll them into the loan. Also ask about discount points. These are payments you can make up front to “buy down” your interest rate by an eighth- or quarter-point. By paying points, you are essentially prepaying interest to save more interest charges over the life of the loan....

Find your lender of choice and get preapproved for a mortgage before looking at homes. Pre approval tells sellers you are a serious buyer, not just a browser, and streamlines your final approval once you put a contract on a house....

Q: When should I lock in my interest rate?

Locking an interest rate with a lender means you and the lender commit to a rate for a certain period, typically 30 days. A rate cannot be locked until after initial loan approval, and the lock usually lasts during the underwriting and final approval process on up to closing....

A rate lock protects you against the risk interest rates will rise during this process. The risk of a rate lock is that rates could actually go down during the lock period, leaving you committed to a higher rate. A “float down” provision with your lender could protect you against this risk. There’s also a risk that your closing on the house could be delayed and the rate lock will expire. The lender assumes risks of its own in rate fluctuations....

When interest rates are rising, you can commit to a 30-day lock if you believe you can close on the home in that period of time. If you choose to lock for longer than 30 days, the mortgage company may charge you an extra eighth of a percentage point or more in interest to hedge its risk....

When interest rates are falling, you might wait for a lower rate until much nearer to closing, hoping to get the best rate possible....

Q: What if my loan application is denied?

Even before the application process you should know your credit score by pulling a free credit report. Apply for pre approval before you begin home shopping. The lender doing the pre approval should be candid with you about challenges you may face. It’s important to note that even with pre approval, final mortgage approval is not assured....

If you are denied, the lender must tell you why. You can apply with another lender, but remember that each new application shows on your credit report and can be a drag on your score....

Keep in mind that banks’ lending standards will likely be tighter than other lenders. A mortgage broker has more latitude because he works with many lenders and can shop among them to find the best rate, fee packages and other terms for you....

Ultimately the best way to recover is to work on improving your credit score. This means making timely payments and paying down your overall debt level....

Related – FAQs for First-Time Home Buyers...

Securing a good interest rate and qualifying for a home require a good credit report. That’s easier said than done, especially for today’s millennials who are often weighed down by student loan debt. Here’s a four-step approach to building a strong credit history....

Types of credit

Debt falls into two categories: revolving and installment. Revolving accounts include credit cards or cards to specific stores. These accounts give a maximum limit that you can borrow. You’ll then have a minimum payment every month that goes toward the principal and interest....

Installment accounts refer to a fixed loan amount, paid back in scheduled payments over a specific number of months. Car loans, mortgages, student loans, personal loans – payments on these regularly reduce the principal amount, which eventually results in full repayment. Revolving debt typically carries higher fees and interest rates than installment accounts....

Step 1: Establish and maintain your credit history

Yes, you need credit, and you need credit in order to get more credit and higher limits. First-time borrowers may be required to start with a “secured” credit card. Secured means you put money in an account like a certificate of deposit and in return, the bank gives you a credit card. If you put $250 down, then your credit limit is $250. Many experts recommend using this type of card for all your gasoline purchases and then paying the balance in full each month. The longer your accounts are open and in good standing, the stronger your credit history will be....

Step 2: Pay on time

Your credit history also will reflect your timeliness in repayment. Late or skipped payments will bring your score down and can remain on your report for a number of years. In addition to the ding on your report, late or skipped payments may also bring stiff financial penalties. Credit cards companies may increase your interest rate after missed or late payments and charge late fees. Car loan companies may repossess your vehicle. The interest on student loans continues to accrue when you fail to make payments. All of these scenarios make the debt more expensive for you and harder to catch up. A history of on-time payments, on the other hand, tells a mortgage lender you’re likely to pay your mortgage on time, too....

Step 3: Don’t max out

Part of your score is based on how much of your available credit you actually spend. Using all of your available credit may be interpreted as relying too heavily on debt....

Step 4: Pay down your balances

Lenders look for diligence at reducing your debt over time. Using the above tip with a small card that you pay completely each month shows you can budget and plan your spending. Keeping high balances that carry over from month to month indicates a tendency to over-spend your income. If you find yourself with a high balance because of an unforeseen expense, it’s crucial to work steadily toward eliminating the debt, paying more than the minimum required payment each month....

These tips also work for rebuilding damaged credit but are especially important for younger millennial adults to set themselves up for success....