National Mortgage Rate Update

Fifteen-year fixed-rate mortgages averaged 4.32%, up from 4.27% last week. They averaged 5.20% a year ago. And 5-year Treasury-indexed hybrid adjustable-rate mortgages averaged 4.26%, up from their 4.19% average last week. The ARM averaged 5.82% a year ago. But average rates on 1-year Treasury-indexed ARMs dropped slightly this week. The ARM averaged 4.24%, down from 4.25% last week and 5.09% a year ago.

Did You Know?

Are you aware of the interesting facts about Hollywood, the world renowned name in the motion picture industry? This district of Los Angeles has the well-known Hollywood sign. In reality, this sign was built in 1923 by one of the real estate agents and an investor, Harry Chandler, with a motive of advertisement. He spent around $21, 000 for this and wanted it to stay for 18 months. But at that stage he was not aware that this construction would become a legend in itself. Today, the famous Hollywood sign is more than 80 years old. Initially, the sign used to read "Hollywood Land". But in 1949, "Land" was removed and only "Hollywood" remained. Today, the sign is taken care of by "Hollywood Sign Trust" which was formed in the year of 1995. On September 18, 1932, Lillian Millicent "Peg" Entwistle after unsuccessful Hollywood carrier, jumped from the letter 'H' into her death. She was only 24 years old.

Basic Forced-Air Furnace Maintenance

A little maintenance goes a long way toward keeping your forced-air equipment working properly. Here are some suggestions about how you can keep your system in tiptop shape.

Start by cleaning or replacing the filter. With forced-air furnace systems, air returning to the furnace's blower first passes through an air filter designed to catch dust and debris and help clean the air before it's recycled to your home. A dirty filter can force your furnace to work harder and, hence, increase your energy consumption and cause parts to wear out faster. A clogged filter can completely stop your furnace from working. Change filters quarterly or sooner if they look dirty. Pleated fabric filters are a good, inexpensive choice for reducing dust and allergens.

Before the heating season, brush and vacuum the heat exchanger surfaces and clean the blower blades. You should also check your metal ductwork and seal any air leaks with several wraps of duct tape. You can either feel for leaks yourself with your furnace blowing or hire a professional to check for leaks that you cannot access. In general, it is good to have your entire system checked out by a pro about once a year. Call your utility or check its Web site. In many areas, the utility company will send a technician to your home to check minor furnace problems for free.

Here's a basic maintenance list for the do-it-yourselfer:

1. Turn off the power to the unit.
2. Look for the door or panel that conceals the blower; sometimes this is marked "Filter" Lift this door or panel off of its holding hooks, or unscrew its retaining screws to remove it.
3. Standard filters are mounted next to or under the blower motor. Slide the filter out along its tracks. Check to see whether it is a disposable filter or intended to be cleaned and replaced - this should be marked on the filter's edge, along with directions for cleaning if applicable. If it's a disposable filter, its size will likely be printed on the frame's edge. Make a note of it.
4. Buy a replacement filter, and slide it back into place, noting that arrows stamped on the side indicate the direction of airflow; be sure you face these in the proper direction.
5. While you have the furnace open, it's a good idea to vacuum out the area around the blower. If possible, slide out the fan unit, clean each fan blade with a toothbrush, and then vacuum with a brush attachment on a vacuum cleaner.
6. Look for oil ports on the motor, normally located near the motor shaft. Most contemporary motors don't require lubrication, but motors with oil ports should be lubricated once a year. If the motor has oil ports, apply two or three drops of non-detergent motor oil into each port (you may have to remove a cover plate to do this).
7. Look for worn belts between the motor and pulleys. If you see any, they will need to be replaced. Call a professional to help you with this.

Builders & Developers

As the region's leading Builder / Developer partner, Factory Homes Outlet has proven that modular construction is a solution that gives builders and developers a faster, more cost-efficient alternative to traditional site-built methods. When you build faster, you can build more often and see faster returns on your investments. This means that whether you're building commercial developments, single- or multi-family homes, subdivisions or urban infill, Factory Homes Outlet modular construction can help you do it with reduced risk and a higher return

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Modular Construction is a Process not a Style A misperception exists that "modular" refers to a type or style of homes and buildings. Modular actually refers to a construction process in which large components are pre-built in a manufacturing facility and then shipped on carriers to the project site. Architecturally, modular construction is not limited to simple ranch style homes; it can be used for a variety of housing styles and commercial structures.

Off-site Construction Advantages Building off-site in a controlled environment has many advantages. Modern component construction processes combined with a team of skilled craftsmen allow us to fabricate a stronger and more durable structure. Building materials and finished modules are protected from weather-related damage that can lead to costly rework. In addition, modules are continually inspected throughout the building process to ensure they are built to the appropriate residential or commercial building code and meet our quality standards.

Solutions to On-site Problems Modular building provides solutions to many problems encountered on-site. With approximately 80% of the structure completed in the factory, there are fewer delays from inspections and bad weather at the building site. The chance of material theft and vandalism is minimized, fewer subcontractors are needed to complete the project and stress upon the surrounding community is significantly reduced.

Whether you're building commercial, single- or multi-family homes, subdivisions, government buildings or urban infill, Factory Homes Outlet can provide a modular solution for your project.

The 5 Most Expensive Mistakes Made on Land for Your New Home

By Jim Spray, Factory Homes Outlet Consultant

You can under-estimate the cost of your new home by tens of thousands of dollars by not considering the following five items. Whether you already own your land or are shopping for your lot, be sure to add these less obvious items to your planning along with the wonderful view or unbelievable price.

Installing utilities.

Most people realize having the electric company install poles and run a power line a half mile to the back of your acreage is considerably more expensive than connecting to an existing pole 30 feet away. What most people fail to consider, especially on more residential lots, is the difference in cost from one side of the street to another. If a utility has to be run under a street, there is easily an extra $10,000 in cost to building identical homes across the street from one another. Builders are typically required to run utilities and pave roads on their land, and then give their roads to the city once the development is in place. If a water, electric, gas, or sewer line needs to be installed under a street after a city owns it, the cost sky rockets. You usually have to get an expensive permit to tear up and repair a city's street, and must pay an inflated price to a limited number of contractors on the city's approved list of contractors. Before you curse the contractor think of all the bureaucratic paperwork and expensive bonds the city requires of those few contractors. Call a local well drilling company before considering a property that needs a well. The local well contractor will be familiar with local hydrographic surveys and probable required well depths. Just because wells on one side of the county are usually 100 feet deep doesn't mean wells five miles away aren't 300 feet deep.

Impact Fees.

Even if the water main is only 30 feet from your home, already stubbed, ready to be connected, you may have to pay the utility company thousands of dollars to connect. This usually, but not always, happens with city owned utilities. Many communities have not managed their growth and realized too late their utility infrastructure is inadequate. A town of 2000 people less than 10 miles from where I sit writing this ran into this situation. The population doubled in the 1990s and the water system was too small. The city solution was to raise money for expanding the water treatment plant by charging home builders several thousands of dollars for every new home connected to the system.

Site Condition and Access.

If you really love the established willow tree in the middle of the yard with a quaint rope swing, you can keep it. Do you know if it will cost you an extra $2000? Do you like it that much? If existing landscaping prohibits getting the cement truck to the foundation a pump truck can be used. It is an easy solution. You can use a crane to build your home on a slope, with a walk out basement without disturbing foliage a few feet away. You are setting yourself up for disappointment if you decided on this dream lot because of the landscaping, planned a home to the limit of your budget, then found out you can't afford to build the dream home without destroying the dream landscaping. Is there an old existing home that needs to be removed? What does the local landfill charge if they determine the demolition may contain asbestos? It may be an extra few thousand dollars.

How to Partition.

You can ignore this paragraph if you are paying cash and are certain you and your descendants will never sell the home. Divide the land first, then get your financing, then start improvements. Banks don't like to make traditional home loans for homes on more than about 10 acres. You may need to look into farm or other specialty loans if you want to put a home on a large parcel. You probably don't want to risk putting up more than 10 acres as collateral for the loan either. When you partition, make the acreage match the home. For example, a small starter home fits better on an acre and the 6,000 square foot home sits better on 5 acres with a horse paddock or small barn. Again, match the home and parcel size to other "micro-ranches" in the area. Divide the land first, then get your financing, then start improvements. Banks want to be in "first position" on land used as collateral. They do not want to risk having a contractor who drilled a well making a claim on the property they just gave a loan against. If you have borrowed money for improvements and then need to wait for the county to approve the partition before building the home, you will pay more interest than you planned. Many planning and zoning committees only meet once a month. If you just missed this month's meeting, you may have to wait a month while paying interest before they even review your request. Divide the land first, then get your financing, then start improvements to minimize the financing costs from multiple loan origination fees, interest, and loan extensions.

Market Fit.

Make the home fit with your neighbors. For example, if most of the homes in the area are horse properties with 2,000 sq ft ranch style cabins with 2 car attached garages, you will have a small buyer pool for a 6,000 sq ft colonial home on a half acre. A 1200 sq ft manufactured home in the same area will have harder time selling than a 1400 sq ft modular. The modular home may actually have the same or lower payment than the manufactured home. A modular appraises against site built homes and other modulars. Modular homes generally run 20-25% less than site built, so you probably move in with enough equity to avoid having to pay $100/month or more in mortgage insurance. The manufactured home must appraise against other manufactured homes. Since there are none in the area, the appraiser may need to look several miles away at much older manufactured homes in less desired locations.

The cost of home projects is often split about one third for the cost of the land, one third for the cost of site preparation, and one third for the home itself. It is not uncommon for us to see projects where the cost of site preparation is $50,000. Do your homework if you have found a great deal on a piece of property that is $20,000 less than surrounding land. You may have found a great deal. When you add in $20,000 of unexpected cost for a 250' power line run, impact fees and permits, an installation of a basement in hardpan soil, or a 450' well, on top of the cost of the foundation, installing a septic tank or removing an existing structure, your great deal may be priced competitively.

We have a comprehensive site evaluation service. We guide you around these and other potential pit falls when you purchase a home from us. Contact us if you want more information or a copy of our site evaluation form.

Christmas Facts: Did you Know?

Silent Night was written in 1818, by an Austrian priest Joseph Mohr. He was told the day before Christmas that the church organ was broken and would not be prepared in time for Christmas Eve. He was saddened by this and could not think of Christmas without music, so he wanted to write a carol that could be sung by choir to guitar music. He sat down and wrote three stanzas. Later that night the people in the little Austrian Church sang "Stille Nacht" for the first time.

In 1836, Alabama is the first state in the USA to declare Christmas a legal holiday. In 1843, the first Christmas card was printed in England for Sir Henry Cole. He was busy man who wanted to save time in his own Christmas letters, but was also interested in encouraging the expansion of the postal system. 1000 copies of the card were sold at one shilling each. It was not until the 1860s that the production of cards accelerated, with cheaper printing methods. Then in 1870, the Post Office introduced a half penny stamp for sending cards. In 1856, President Franklin Pierce decorates the first White House Christmas tree. In 1907, Oklahoma became the last USA state to declare Christmas a legal holiday. At midnight on Christmas Eve 1914 firing from the German trenches suddenly stopped. A German brass band began playing Christmas carols. Early, Christmas morning, the German soldiers came out of their trenches, approaching the allied lines, calling "Merry Christmas". At first the allied soldiers thought it was a trick, but they soon climbed out of their trenches and shook hands with the German soldiers. The truce lasted a few days, and the men exchanged presents of cigarettes and plum puddings, sang carols and songs. They even played a game of Soccer.