Save Money During the Hot Summer Months!

With the summer temperatures rising, so does the need for more energy for your home. Make sure your home is running at the highest efficiency possible by following these simple tips. They can help lower your energy bills and leave you cool and comfortable all summer long!

1. Keep the blinds closed during the day. By keeping your blinds closed during the hottest part of the day, you’ll block heat from seeping into your home. For added insulation from the heat, use heavy drapes or curtains to block out the sun’s rays.

2. Adjust your thermostat to run at least two degrees warmer than you normally would. Consider using a programmable thermostat so that your air conditioner isn’t working hard to cool your home while no one is there to enjoy it. According to Kentucky Utilities, a programmable thermostat can save up to 12% on your home energy costs. Avoid placing lamps or TV sets near your room air-conditioning thermostat. The thermostat senses heat from these appliances, which can cause the air conditioner to run longer than necessary.

3. Use ceiling fans to cool your home. Even when your air conditioner is running, turn your ceiling fans on so you can spread the cooled air more effectively throughout your home without having to adjust the thermostat. According to energy.gov, if you use air conditioning, a ceiling fan will allow you to raise the thermostat setting about 4°F with no reduction in comfort level.

4. Consider planting shade trees or shrubs in areas of your yard that receive full sun during the day. Not only will you save on energy costs, but you’ll give your home more curb appeal! An air conditioning unit that operates in the shade uses less energy than one operating in the sun, however when planting, make sure to keep limbs far enough away from the unit so that they don’t block airflow.

5. On really warm days, avoid using your oven. Stick to using a crockpot, the microwave, or grilling out. Heating your oven up daily adds more heat to your interiors and therefore requires your air conditioning cooling system to work harder and longer. If you need to do laundry, wait until the sun has gone down so that you aren’t heating your home more than necessary.

4 Ways to Improve Your Credit Score

You’ve heard over and over that now is the time to buy. House prices are increasing and mortgage rates are at historical lows and you know you need to get into the game. But what do you do if your credit doesn’t look that great? Here are 4 things you can do to improve your credit score so that you’re ready to buy your first house.

1. Get copies of your credit report and make sure it’s accurate.

Errors on your credit report can force you to pay a higher interest rate or even disqualify you from getting a mortgage at all. Go to www.annualcreditreport.com and get a free report from each of the three national credit reporting companies (Equifax, Experian and TransUnion) According to federal law, you’re eligible for a free report every twelve months. Check for any errors, accounts that aren’t yours, or negative marks older than seven years. Make sure lenders have reported your credit limits accurately, because they can affect your credit score.

2. Make all your payments on-time.

The easiest way to build up your credit score is to make every payment on-time. If you don’t have a good bill-paying system, you can set up automatic payments from your bank account to help you pay on time.

3. Improve your debt-to-credit ratio.

The credit-scoring process looks at the ratio of your debt to the total amount of available credit you have. While your credit card might have a $10,000 maximum balance, having it maxed out looks bad to potential lenders and doesn’t look good on your credit history. Some lenders may consider multiple maxed out balances to be a sign of irresponsibility on your part. Your long-term goal is to get rid of all your debt, but a good, short-term target is to shrink your ratio to less than 50 percent. Then 40, then 30, and so on.

4. Pay it off, but don’t close it out.

Because Lenders looks at your debt-to-credit ratio, having an account with a $0 balance but a high credit limit can be a good thing. Lenders also look to see the length of time an account has been opened. They want to know that you can handle debt on a long-term basis because they are considering loaning you a large sum of money for 30 years. Avoid opening up new accounts just to increase your credit limit. Adding accounts too quickly sends up a red flag that you might not be able to handle your credit responsibly.

If you’re planning on buying your first home in the near future, follow these tips to help raise your credit score and build a well-rounded credit history that will make lenders want to loan you the money for your mortgage. Contact a mortgage professional at Walden Mortgage for more information on purchasing your first home.

Spring Activities in Knoxville, TN

If you’re looking for a little Spring-time fun in Knoxville, TN, here’s a list of events going on in your area!

·         The City of Knoxville presents The Market Square Concert Series. Enjoy free concerts on Market Square from 8 p.m. to 10 p.m. on Tuesdays and 7 p.m. to 9 p.m. on Thursdays. Concert-goers are invited to bring chairs or blankets to sit on the Square and enjoy the shows. For a full list of performers, visit the Market Square Concert Series website. 

·         The Market Square Farmers’ Market is an open-air farmers’ market located on Market Square in the heart of downtown Knoxville. Everything at the MSFM is grown or made by the vendor in the East Tennessee region. You can visit the Market Square Farmers’ Market every Wednesday from 11am to 2pm and Saturday from 9am to 2pm, May through November on historic Market Square. Free parking is available in the Market Square, Locust St. and State St. Garages, and at meters, on Saturdays. Parking is $1 per hour on Wednesdays in all three garages. Visit the Market Square website for more information and special events. 

·         If you’re looking for a little adventure, the Ijams Nature Center is full of activities and events for people of all ages! Explore nature trails, enjoy children’s day camps throughout the summer, and experience the heart of Knoxville’s richest urban landscape. For a full schedule of programs, camps, and events, visit the Ijams Nature Center website.

·         June 6-13, catch a phenomenal display of nature at its best at the Firefly Display at the Great Smoky Mountains. Synchronous fireflies are the only species in America whose individuals can synchronize their flashing light patterns and they do so each year in early June as a mating ritual. The Elkmont area of the park has a high population of these fireflies and has become a very popular viewing area. For parking passes to this unique event, visit the National Park Services website.

·         The most fun, unique cultural event featuring adrenaline-pumping action is heading to The Cove at Concord Park. On June 22, the Knoxville Dragon Boat Festival will showcase competitive community and corporate teams racing for title of Grand Champion. Teams of 20 paddlers, a drummer and steerer race in authentic 41-foot long Chinese dragon boats. All ages, skill levels and physiques can participate, making it the ultimate team building sport, requiring synchronicity and finesse, more than power to win. Visit the event’s website for more information.

How Much Does A New Home Cost?

How much does a new home cost?

This is one of the most frequently asked questions we get when it comes to building a new home. Unfortunately, it is also one of the few questions that we can’t answer very specifically. Think of it like this:

·         Can you tell me how much it costs to take a vacation? Well, are you planning a weekend getaway to a cabin in Gatlinburg or a week-long cruise to the Caribbean?

·         How much should I expect to spend on a new car? Are you planning on getting a Kia, a Lamborghini, or something in between?

·         What is the average cost of a dinner for two? If you plan on hitting up the local fast food place, your bill will be a lot less expensive than it would be at Malone’s Steakhouse.

The problem with asking open-ended questions like these is that there are so many variables that go along with each question that it is nearly impossible to give an accurate answer without getting more information first.

The same is true when it comes to calculating the cost to build a new home. Are you looking for a 3-bedroom home, or do you need 4 (or more) bedrooms? Are granite countertops in your kitchen a “must have”, or would laminate countertops work for you? Do you have to have hardwood floors throughout your house, or is carpet your preferred flooring choice? Because everyone’s wants, needs, and wishes for their home are so different, it’s hard to give a one-size-fits-all price for how much a new construction home will cost.

We have found over the years that the typical amount of upgrades people choose for their home are around 15-20% of the base price of the home. That means, if the house you choose has a base price of $200,000, the typical amount of upgrades will be between$30,000- $40,000. Of course, that number could change, depending on the individual preferences of your home. If you and your family decide that a walk-out basement, an upgraded kitchen, and an elegant master suite are on your must-have list, then you can expect to pay more, possibly 25% or higher, than someone who has different desires for their home.

We know that buying a new home can be confusing. We are here to help you plan and design your new Ball Homes home within your budget. If you have questions about the costs for a home you are considering, we would be more than happy to discuss it with you. Contact a Ball Homes Specialist today!

Big Changes to FHA Loans

This post is brought to you by Mike Dunn and Jeff Sharp of Walden Mortgage Group.

There are two big changes going on in the mortgage world in the next few months. One of the most popular types of low down payment mortgage loans known as a Federal Housing Administration loan, or FHA loan for short, will be making changes to the mortgage insurance premium collection policy (you may know it as mortgage insurance, or MI). 

If a new borrower’s MI is not ordered before April 1^st (meaning the final contract is completed), the annual MI, which is included in the monthly payment to the lender, will increase by .10%. That means that if you have a loan amount of $180,000, you would pay an extra $15 per month on your mortgage payment and, more specifically, towards your MI, if your MI is not ordered before the April 1^st deadline.

 

So what do you need to do?

 

If you are already in a loan, locked in, and not looking to refinance, these changes do not affect you. If you are in the process of buying a house and need FHA financing or you are planning on refinancing, you need to speak with your Walden Mortgage Group loan officer as soon as possible to lock in the lower MI.  You must have your final contract completed by Friday, March 22^nd at 5:00pm to ensure proper processing turn times are allowed for what will surely be a busy last week of March. 

 

The second, and possibly more impactful change, will occur for new borrowers who do not lock in their MI before June 3^rd, 2013. Currently, if you are paying MI, you can drop this added monthly fee after 5 years of owning your home, as long as you have made on-time payments and have paid the loan down to 78% of the original sales price. For those who miss this deadline and still

desire to use FHA financing, you will be required to pay the higher MI for the entire term of your loan!  After the 5^th year in your new home and with a loan amount under 78% of the original sales price, you would have to refinance your loan to drop the MI, but likely to a higher interest rate as rates will likely not be as low as they are today. In order to lock in your MI before the June 3^rd deadline, a completed contract is needed before Friday, May 24^that 5:00pm. 

 

These changes can be confusing. Walden Mortgage Group is here to help. If you have any questions regarding FHA loan changes, mortgage insurance or today’s interest rates, contact your Walden Mortgage Group loan officer at 859.514.4444 or visit our website.