Connecticut Financing Update and Mortgage Rates December 9, 2011

As the year winds down, economists are starting to make their predictions for 2012.  The general consensus -

Let's start with the good news for families and homeowners across the U.S. Household debt burdens have continued to fall through the last financial quarter. Since October 2010, the rate of disposable income allocated to debt services has declined from 13% to just over 11%, with the total level of household debt in the U.S. having fallen simultaneously during the same period. That said, there remains a significant level of household debt within the U.S., and this situation is unlikely to improve with unemployment expected to remain high throughout 2012.

The issue facing families and homeowners in the U.S. is one of multiple debt and the prospect of having to prioritize what gets paid as a matter of urgency. When you consider that the average debt per household in the U.S. (not including mortgage repayments) stands at approximately $14,500, then you begin to understand the amount of repayments that may be missed in order to maintain a family home. As long as households continue to be burdened with multiple debts, they face an arduous journey towards solvency in 2012.

Unemployment is the major drag on the housing market. Unemployed individuals cannot get a mortgage to buy a home or refinance into a lower mortgage rate to improve their financial situation. Those who do not have job stability are reluctant to take on the commitment of homeownership.  

If a home is lost to foreclosure, it has a negative impact on home values in the neighborhood. Reducing home values affects homeowners seeking to sell and trade-up, and hampers those seeking to sell and relocate to a better economic climate.

Generations X and Y, who are in their prime home buying years, are among the hardest hit by unemployment and saddled with record college debt.

Today's Mortgage Rates

30 year fixed - 3.750% + 0% cost points for rate
20 year fixed - 3.750% + 0 % points for rate
15 year fixed - 3.125% +  0% points for rate
10 year fixed - 2.875%  + 0%  points for rate
5/1 ARM - 2.375%  +0 points for rate
7/1 ARM - 2.750 %  + 0 points for rate
10/1 ARM 3.250% + 0 points for rate

FHA/VA
30 year fixed - 3.750% with +0 % points for rate
5/1 ARM - 2.750%  with + 0 points for rate
7/1 ARM - 3.25 with +  .625 % CREDIT  point for rate

Jumbo - over 576,000 (in Fairfield County, CT)   to 2,000,000
30 year fixed - 4.625  % with 0 points  for rate
15 year fixed - 4.125% with 0  points for rate
5/1 ARM - 3.375% - 0 points for rate
7/1 ARM - 3.750 % - 0 points for rate
10/1 ARM - 4.375% with 0 points for rate

Jennifer Buchanan,  Certified Mortgage Planning Specialist at MetLife Loans is a seasoned veteran of the Mortgage, Banking and Broker Industry and specializes in mortgage loans throughout Fairfield County, Connecticut.
   Her attention to detail is unsurpassed, and her understanding of the marketplace makes it easy to find the right loan to fit her clients specific needs .  Jennifer's local processing and closing team are also known for their exemplary service.
   Understanding that the vast majority of mortgage brokers never discuss the long or short term  financial needs or goals with their clients, she set herself apart from the rest by obtaining the coveted CMPS  designation. (Certified Mortgage Planning Specialist)
    She is a member of the National Association of Responsible Loan Officers, and her commitment to ethics, understanding of the marketplace, and business acumen have earned her the respect of her peers and clients alike.

Jennifer Buchanan
Metlife Loans
203-341-6949

Jennifer Buchanan- Your certified expert
 on mortgages offering Free Unbiased
recommendations based on your needs.

Is a Hubbard Clause Right For Your Connecticut Home Purchase or Sale?

Current homeowners who wish to buy another home, but need to sell their home first in order to use the equity as a downpayment can wonder if they should sell the home they own first, or find the home that they wish to buy first, and then start the process of selling their home. In the case of the latter, the homeowner who wishes to purchase a new home should consider placing an offer with a "Hubbard Clause" rider.

A "Hubbard Clause" is a contingency in (or addendum/rider to ) a purchase agreement that expressly conditions the buyer's offer upon their ability to sell and close on another home or property. It is almost like a first right of refusal to purchase the property- ALMOST, but not quite. Think of it like "reserving a right to buy a particular property" while trying to sell the one you own.

While most  buyers and sellers think this just another perk for the buyer, think again. By the way, I can include a number of agents who would tell you that this is a benefit for the buyer, as well. This type of agreement actually benefits the seller much more, especially  in a buyers market.

The "Hubbard" portion of the agreement must have the following two items included in the verbiage:

1. Final Hubbard contingency sale date- That is, the deadline for the buyer to secure a purchaser for their home, so they can move forward with the sale on the home that they wish to purchase.

2. A deadline for the buyer to remove the "Hubbard" contingency if another offer comes in during this period.

There is no national standardized  form for this, nor are there generally accepted statewide forms for "Hubbard Clauses"- rather the forms which are used tend to be much more regional or generated through independent franchises.  There are a good number of agents who just do not like to work with Hubbard Clauses at all, which I do not understand, but it is what it is. I think that if an offer comes in a home where I represent the seller, that we should absolutely listen to it. It's kind of like a back-up offer without having the main one. As long as all the conditions and terms of the sale are acceptable and  we can still market the house, it would be foolish not to entertain such an offer. When I represent the buyer, and if that's the only way they feel comfortable moving forward, I believe it's my fiduciary responsibility to help them get the house that they want.

Buyers:

If your home is not already on the market, be prepared to list it THE SAME DAY that you place your offer in on the property that you wish to buy. You do not have to list it if the homeowner does not wish to entertain your offer, but  if they are willing to negotiate with you, it is of extreme importance to be ready...ready.... ready.

I have to go on record, here- this is not the most cost effective way to purchase a home. Sorry, but it's true. If this is what makes you most comfortable, I am all for that, and will do as you wish. Often times, you will end up paying a premium for the right to purchase a home in this manner,  and you may end up selling your home for less money to satisfy the Hubbard Contingency within the time. allotted.

Sellers:

I do not really see a downside to sellers as long as an acceptable Hubbard addendum allows you to continue to market the home as ACTIVE, and not change its status to anything else. (See FAQ's below)   Provisions must be made  for the instance of  another offer coming  in during the period that the Hubbard is in effect. Usually, giving a buyer 2 or 3 business days to remove the Hubbard Clause is sufficient, so if they are comfortable removing the clause, you will sell it without the contingency, or if they cannot remove the Hubbard, that you are free to sell it to another party. There are no guidelines as to price or terms for accepting another offer unless they are written into the addendum itself. You must just concern yourself with the time frame.

Hubbard Clause General FAQ's

• Hubbards may include unique terms or conditions.

• Understand that homes are shown with a signed Hubbard Clause agreement in place.

• And then, some agents will NOT show homes that have a signed Hubbard Clause

• Some buyers choose to include a Hubbard Clause because they would actually qualify for your home purchase without selling their home, and just do not want to carry two mortgages.  

• Hubbard clauses can be extended by agreement from both parties.

• Regionally, we work with binders first and then formal contracts are prepared within two weeks- Sellers may decide NOT to have their attorneys draw contracts until the Hubbard Clause is removed.  

• The buyer can withdraw their offer entirely with no penalty, unless expressly written in the contract.

• This agreement seems to be more binding  performance wise to the seller than it is to the buyer.

• And in case you were wondering, the name has nothing to do with Old Mother Hubbard, (despite the shoe)

If you have a question about buying or selling Real Estate in Fairfield County, and are in need of representation, I invite you to contact me, and if you have an idea for a topic that you would like to see on The CT Realty Blog, please include it in the "Post a Comment" section link below this post. We appreciate the feedback and look forward to providing you with the best real estate content, advice and service in Fairfield County, Connecticut.

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About Mechanics Liens in Connecticut

Did you know... The important purpose of mechanic's lien statutes to provide an inexpensive and simple method for material suppliers and contractors to secure the value of the services or materials that they have added to the property. Because the mechanic's lien is a creature of statute, a lienor must comply with statutory requirements in order to perfect his claim.

• WHO MAY FILE: “If any person has a claim for more than ten dollars for materials furnished or services rendered in the construction, raising, removal or repairs of any building or any of its appurtenances or in the improvement of any lot or in the site development or subdivision of any plot of land . . . .” Conn. Gen. Stats. § 49-33(a).
• REQUIRED: “the claim is by virtue of an agreement with or by consent of the owner of the land upon which the building is being erected or has been erected or has been moved, or by consent of the owner of the lot being improved or by consent of the owner of the plot of land being improved or subdivided, or of some person having authority from or rightfully acting for the owner in procuring the labor or materials, the building, with the land on which it stands or the lot or in the event that the materials were furnished or services were rendered in the site development or subdivision of any plot of land, then the plot of land, is subject to the payment of the claim.” Conn. Gen. Stats. § 49-33(a).
• CLAIM: “is a lien on the land, building and appurtenances or lot or in the event that the materials were furnished or services were rendered in the site development or subdivision of any plot of land, then on the plot of land . . . .” .
• WHERE TO FILE: “A mechanic's lien is not valid unless the person performing the services or furnishing the materials . . . lodges with the town clerk of the town in which the building, lot or plot of land is situated a certificate in writing, which shall be recorded by the town clerk with deeds of land . . . ..”
• PRECEDENCE: “the claim takes precedence over any other encumbrance originating after the commencement of the services, or the furnishing of any such materials, subject to apportionment as provided in section 49-36.” Conn. Gen. Stats. § 49-33(b).
• Subcontractors: “A mechanic's lien shall not attach to any such building or its appurtenances or to the land on which the same stands or to any lot or to any plot of land, in favor of any subcontractor to a greater extent in the whole than the amount which the owner has agreed to pay to any person through whom the subcontractor claims subject to the provisions of section 49-36.” Conn. Gen. Stats. § 49-33(c).
• ENFORCEMENT: “A mechanic's lien shall not continue in force for a longer period than one year after the lien has been perfected, unless the party claiming the lien commences an action to foreclose it, by complaint, cross-complaint or counterclaim, and records a notice of lis pendens in evidence thereof on the land records of the town in which the lien is recorded within one year from the date the lien was recorded or within sixty days of any final disposition of an appeal taken in accordance with section 49-35c, whichever is later. Each such lien, after the expiration of the one-year period or sixty-day period, as the case may be, without action commenced and notice thereof filed as aforesaid, shall be invalid and discharged as a matter of law. An action to foreclose a mechanic's lien shall be privileged in respect to assignment for trial. With respect to any such lien which was validated in accordance with the provisions of section 49-37a, the one-year period or sixty-day period, as the case may be, shall toll from the date of the validation.” Conn. Gen. Stats. § 49-39 (2005).

To learn more about Mechanic's Liens in CT, click here.

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*The content within the "Tip-of-the-Week" is strictly for informational purposes and not intended to be interpreted and/or used as legal advice. Only Closings and OnlyClosings.com is a service provided by Tamara L. Peterson Attorney at Law LLC.

How to Stage Your Connecticut Home For Sale in the Winter

While we are lucky enough to enjoy the changes of the four different seasons in southwestern Connecticut, the Winter brings in colder temperatures, and much less daylight to work with, besides the wintry conditions that will inevitably occur. The unique set of challenges that occur during this time need to be addressed in order to properly stage your home to show at its best. Don't forget the basics of staging, just add these seasonal suggestions to show your home at its best.

... and remember,  buyers do appreciate the effort that you take to make sure your home is in show-ready condition, and you may very well end up getting more money for yoru home because of that little extra effort.

STAGE THE OUTSIDE FIRST:

Curb Appeal Brush Up

Weather permitting, and preferably before the first snow, clear out any excess fallen leaves from the yard, as well as the gutters. If there are any dead plants, remove them now. If there are tools that are outside, bring themin the shed or garage. Remove any garden hoses and turn the water off for the spigot, if it's not already off.

Add to your Curb Appeal

Who says you can't put flowers out of some kind?  Colorful Mums are great in the fall through early December, and small seasonal faux trees in pots look great on your front porch, either with or without lights. A wreath of almost an type on your front door is also quite welcoming. Whatever plant or wreath you choose, please just make sure they are seasonally appropriate.

Exterior Lighting

Are the lights at your front door bright enough? Maybe it's time to change them,  add  more fixtures, or at least change the wattage on the bulb.

The Rear and Side Yard Views

You may not have thought about during the winter, but just go ahead adn go to the rear of your yard and look at your home from the back.  If you have a rear deck or porch, put a pot of seasonal plants there, too. At some point during the winter, it will be unforgiving cold. Consider a well made alternative. It is all the seemingly little things that add up and mean a lot.  

Patios, Porches and Decks

Make sure your deck and/or patio is free and clear of any debris. You may want to check for any loose planking, screws or nails, and fix wherever appropriate. Clean your deck off completely, and that includes storing the furniture in the garage, shed or basement. When the snow comes, the buyer should be able to walk on a totally clear deck, where the snow has all been removed. Helpful Hint: It is much easier to sweep  or shovel off the snow when the deck is completely clear.

Don't Forget to Check Your Side Yard.

Just make sure  that it's neat and tidy. If you store your trash cans outdoors on the side of your home,  make sure they are as clean as possible. (No scuffs, scrapes or old dirt on the outside)

Clear Your Driveway, Front Walk, and Front Porch of Snow and Ice.

This is the single most important item on the winter staging agenda. If buyers cannot reach your home due to an snow covered driveway, snow covered walkway and/or porch, they won't come in. Ice is even more treacherous. There are plenty of products on the market that will just about do all the work for you to get that ice removed.  If you are away frequently, hire someone to handle ice and snow removal in your absence.

Windows

Get the windows washed if you haven't done so recently. Besides the fact that the sun is lower in the winter, and shows every piece of dirt on every piece of glass, the added unobstructed sunlight  will add very nicely to your home's appeal.

NOW, STAGE THE INSIDE:

Warmth

Think warm and cozy. If the weather outside is frightful, make your home's temperature delightful. (Sorry, just couldn't resist that one) Truly, a warm home is much more comfortable to look at than a cold one. If the buyers aren't comfortable, they will not stay long enough to view your home without  just hurrying up to get back into their car where it actually feels warmer.

Lighting

Take every advantage that you can of the diminished natural light that you get. Clean yuor blinds and curtains and open them as wide as possible. Clean the lamps, and bulbs (just make sure that the bulbs are cool to the touch before you do so). Replace bulbs with the highest wattage allowed for the fixture to add as much light. Put timers on selected lights to be able to have tour home in "light-ready show condition"  when you are not home.

Some extras to think about

Go ahead, set the dinner table. Put out some chocolates, or have a plate of cookies out.
Think about aromas- Cinnamon rolls, freshly baked bread, apple pie, chocolate chip cookies, vanilla or cinnamon- just don't overdo it.
If you have summer or fall photos of the outside, put them out for your buyers to see.

A few more relevant articles on staging:

Proper Staging and Guidelines for Home Showings

Staging the Outside of Your Home

How Much Does it Cost to Stage Your Home

If you have a question about buying or selling Real Estate in Fairfield County, and are in need of representation, I invite you to contact me, and if you have an idea for a topic that you would like to see on The CT Realty Blog, please include it in the "Post a Comment" section link below this post. We appreciate the feedback and look forward to providing you with the best real estate content, advice and service in Fairfield County, Connecticut.

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Holiday Season Home Safety Tips

The winter holidays are a time for celebration, and that means more cooking, home decorating, entertaining, and an increased risk of fire and accidents. InterNACHI recommends that you follow these guidelines to help make your holiday season safer and more enjoyable.

Holiday Lighting

Use caution with holiday decorations and, whenever possible, choose those made with flame-resistant, flame-retardant and non-combustible materials.
Keep candles away from decorations and other combustible materials, and do not use candles to decorate Christmas trees.
Carefully inspect new and previously used light strings, and replace damaged items before plugging lights in. If you have any questions about electrical safety, ask an InterNACHI inspector during your next scheduled inspection. Do not overload extension cords.
Don't mount lights in any way that can damage the cord's wire insulation.  To hold lights in place, string them through hooks or insulated staples--don't use nails or tacks. Never pull or tug lights to remove them.
Keep children and pets away from light strings and electrical decorations.
Never use electric lights on a metallic tree. The tree can become charged with electricity from faulty lights, and a person touching a branch could be electrocuted.
Before using lights outdoors, check labels to be sure they have been certified for outdoor use.  
Make sure all the bulbs work and that there are no frayed wires, broken sockets or loose connections.
Plug all outdoor electric decorations into circuits with ground-fault circuit interrupters to avoid potential shocks.
Turn off all lights when you go to bed or leave the house. The lights could short out and start a fire.

Decorations

Use only non-combustible and flame-resistant materials to trim a tree. Choose tinsel and artificial icicles of plastic and non-leaded metals.
Never use lighted candles on a tree or near other evergreens. Always use non-flammable holders, and place candles where they will not be knocked down.
In homes with small children, take special care to avoid decorations that are sharp and breakable, and keep trimmings with small removable parts out of the reach of children.
Avoid trimmings that resemble candy and food that may tempt a young child to put them in his mouth.

Holiday Entertaining

Unattended cooking is the leading cause of home fires in the U.S.  When cooking for holiday visitors, remember to keep an eye on the range.
Provide plenty of large, deep ashtrays, and check them frequently. Cigarette butts can smolder in the trash and cause a fire, so completely douse cigarette butts with water before discarding.
Keep matches and lighters up high, out of sight and reach of children (preferably in a locked cabinet).
Test your smoke alarms, and let guests know what your fire escape plan is.

Trees

When purchasing an artificial tree, look for the label "fire-resistant."
When purchasing a live tree, check for freshness. A fresh tree is green, needles are hard to pull from branches, and when bent between your fingers, needles do not break.
When setting up a tree at home, place it away from fireplaces, radiators and portable heaters. Place the tree out of the way of traffic and do not block doorways.
Cut a few inches off the trunk of your tree to expose the fresh wood. This allows for better water absorption and will help to keep your tree from drying out and becoming a fire hazard.
Be sure to keep the stand filled with water, because heated rooms can dry live trees out rapidly.
Make sure the base is steady so the tree won't tip over easily.

Fireplaces

Before lighting any fire, remove all greens, boughs, papers and other decorations from fireplace area. Check to see that the flue is open.
Use care with "fire salts," which produce colored flames when thrown on wood fires. They contain heavy metals that can cause intense gastrointestinal irritation and vomiting if eaten.
Do not burn wrapping papers in the fireplace. A flash fire may result as wrappings ignite suddenly and burn intensely.

Toys and Ornaments

Purchase appropriate toys for the appropriate age. Some toys designed for older children might be dangerous for younger children.
Electric toys should be UL/FM approved.
Toys with sharp points, sharp edges, strings, cords, and parts small enough to be swallowed should not be given to small children.
Place older ornaments and decorations that might be painted with lead paint out of the reach of small children and pets.

Children and Pets

Poinsettias are known to be poisonous to humans and animals, so keep them well out of reach, or avoid having them.
Keep decorations at least 6 inches above the child’s reach.
Avoid using tinsel. It can fall on the floor and a curious child or pet may eat it. This can cause anything from mild distress to death.
Keep any ribbons on gifts and tree ornaments shorter than 7 inches. A child could wrap a longer strand of ribbon around their neck and choke.
Avoid mittens with strings for children. The string can get tangled around the child’s neck and cause them to choke. It is easier to replace a mitten than a child.
Watch children and pets around space heaters or the fireplace. Do not leave a child or pet unattended.
Store scissors and any sharp objects that you use to wrap presents out of your child’s reach.
Inspect wrapped gifts for small decorations, such as candy canes, gingerbread men, and mistletoe berries, all of which are choking hazards.

Security  

Use your home burglar alarm system. There are ADT security systems available that offer video surveillance, which you can view while traveling with an iPhone app.

If you plan to travel for the holidays, don’t discuss your plans with strangers.
Have a trusted friend or neighbor to keep an eye on your home.

Nick Gromicko, FOUNDER. http://www.nachi.org
International Association of Certified Home Inspectors (InterNACHI) is the world's most elite, non-profit inspection association.
President, ComInspect, www.cominspect.com
Director, Master Inspector Certification Board, www.certifiedmasterinspector.org
Author, 15 books and Co-Host of  http://www.NACHI.TV