Start Your Projects

Summertime is almost here and millions of Americans will be starting home improvement projects. Whether they're classified as maintenance, updating or energy saving, they should make homeownership more enjoyable.

Remodeling magazine's 2010-11 Cost vs. Value Report suggests that some improvements are a better investment than others. Front door and garage door replacements are two of the easiest and return the greatest percentage of cost on resale.

Kitchen and bathroom updates transform an older home and instantly give visitors and buyers a fresh impression. Countertops and appliances can be expensive but yield great results. Painting the cabinets and replacing the hardware is much less expensive to change the look and feel of the rooms.
Energy efficiency enhancements can improve your enjoyment of the home and help save money on utility costs.

•Replace older appliances - refrigerators, ceiling fans, water heaters, air-conditioners
•Add insulation to keep your home cool in the summer and warm in the winter
•Seal air leaks around doors and windows; holes in attics and crawl spaces with caulk, spray foam or weather stripping - more information
•Seal all heating and cooling system ducts - more information
Looking through the eyes of a buyer could show you what features most date your home and could order the priority that you tackle the projects.

2010 Top High Schools in New Jersey-www.njmonthly.com

2010 Top High Schools in New Jersey-www.njmonthly.com

Any champion will tell you the toughest challenge is staying on top. But that’s just what Millburn High School managed to do in this year’s ranking of the state’s top public high schools. The Essex County school, which was number 1 in the New Jersey Monthly ranking in 2008, repeats as our high school champ in 2010.

In fact, the top of this year’s high school ranking is almost identical to the 2008 list, with McNair Academic of Jersey City and Tenafly High School repeating in the number 2 and number 3 spots, and Glen Ridge High School moving up one notch to number 4.

The Top High Schools list is based on data reported by the schools to the Department of Education for the 2008-2009 school year. Click here for an explanation of our methodology.

In addition to publishing the Top 100 Public High Schools in this section, we also have compiled the top 10 schools by District Factor Group, which ranks schools based on their socioeconomic peer group (click here to view the rankings by district factor group); and a list of the Top 10 Most Improved High Schools, based on our ranking. See the full rankings below.

What the rankings do not tell us is how the schools will fare after losing $820 million in direct state aid this year. Under Governor Chris Christie’s cuts, many of the state’s most successful school districts lost every penny of state cash assistance (although the state will pay for certain teacher benefits and the districts’ social security contributions).

That’s the case at Millburn High School, where aid was cut from $3 million for 2009-2010 to zero for the new school year. MHS principal William Miron says the cuts forced an approximate 7 percent reduction in his school’s budget. That has meant increasing some class sizes, eliminating some classes (five sections of Chinese instead of seven), merging a number of clubs, and cutting back sports schedules. Districtwide, about six administrative positions were eliminated, some through retirements; administrative responsibilities were spread among teachers through the creation of department-chair positions.

“We did a pretty good job of contracting without eliminating teaching positions,” Miron says.

A similar scenario is playing out at New Providence High School in Union County, which made a strong leap in the new ranking, moving from number 17 to number 5. The district’s state aid was cut from $1.48 million to zero. NPHS principal Paul Casarico reports that seven teaching and support positions were eliminated districtwide, including two and a half teaching positions at the high school. “Some of the opportunities that kids could take part in won’t be there this year,” Casarico says. At the high school, that means larger class sizes, fewer coaches (although no sports were dropped), and fewer clubs and activities.

Further down the rankings, Glassboro High School is also feeling the pain; its district lost $1.7 million, or 10 percent of its state funding. As a result, four and a third teaching positions were cut at the high school, and class sizes have grown, especially in electives like art and African-American history, says principal Santina S. Haldeman. Her school also cut several teams (cross-country, winter track, spring golf), the fall play, and an after-school weight-lifting program.

Glassboro, which has many students from low-income housing areas, has made good progress, moving from number 197 to number 188 in the rankings. (It is number 10 among its District Factor Group peers.) But Haldeman is concerned about hanging onto the gains. “I worry about what the future will bring,” she says. “I think this is just the beginning. I can’t imagine how it will be a year from now in terms of loss of teachers and programs.”

Click on the links below to read our Top High Schools rankings in the categories listed: CLICK HERE FOR FULL ARTICLE AND RANKINGS

Buy Now or Wait...

Uncertainty as to whether prices will continue to fall has to be one of the most common causes of buyer procrastination. Paying too much wouldn't be a smart thing but price isn't the only factor to consider. Interest rates have as much effect on housing costs as price.

A small increase in mortgage interest rates can offset a significant drop in home prices. If the price of the home were to come down by 5% but the interest rates were to go up by .5%, the payments might be close to the same.

In the example below, if the price of $175,000 home went down 5% but the interest rate went from 4.75% to 5.25%, the payments would actually be $4.98 more at the cheaper price. If while the buyer was waiting for the home to decrease 5% and the interest rate increased by 1%, the payments would actually go up by $55.30.

Then, of course, there is always the possiblility that the price of the home doesn't go down but the rate does go up by 1%. The payments would be $104.58 more per month, each and every month for as long as you have the mortgage on the home.

As a Residential Finance Consultant, I can provide solid information that will help you make better buying decisions. A home is a place to feel safe and secure, to raise your family, share with your friends and an investment. It's an investment in your marriage, your family and your future. You owe it to yourself to check out the real numbers in your market because every market is different.

Not So Fast Buyers!

One of the challenges buyers are having with financing may be their own understanding or lack thereof.

In a recent survey done by research firm Ipsos for Zillow, a surprising number of incorrect answers to true or false questions were given by prospective buyers.

Over 3/4 didn't realize how the mortgage rate was determined for a borrower thinking that annual income was the most important factor. Other considerations lenders do evaluate are credit score, debt-to-income and loan-to-value ratios.

A variety of myths seem to have influenced some of the common answers such as interest rates are set and released once a day; FHA loans are for first-time buyers only; prequalification commits the lender; lender fees are not negotiable and adjustable rate mortgages always go up.

Buyers' misunderstanding of actual mortgage practices may give some insight into why more of them are not taking advantage of the greatly reduced prices and incredibly low mortgage rates.

While getting solid information about mortgages and being pre-approved from a lender are very important, it is only one step in the home buying process. Success in buying a home in today's unique market should begin with a real estate professional that will coordinate all of the different parts of the transaction including mortgage, title, insurance and inspections.

Incentives to Buy

In one of the best buyer markets ever, sellers are not really doing much to encourage purchasers to act now.

Builders offer a variety of incentives such as upgrades, seller-paid closing costs, interest rate buy downs, washers, dryers, refrigerators or big screen TVs.

Interestingly, much of the resale market doesn't employ many of these techniques. According to the latest NAR Home Buyers and Sellers Profile, 56% of sellers are not offering any incentives at all.

25% offer a home warranty which is valuable but at an average cost of about $500, it probably doesn't do much to make the difference in the decision to buy or not.

With the tougher mortgage conditions that exist today, buyers are more discerning and looking for their best opportunity. When homes are similar in size, condition, location and price, the home with the most attractive terms will sell first.

Whether selling or buying, today's complex real estate market requires a professional who can structure a transaction to benefit all parties involved. A Residential Finance Consultant has the tools and information you need to make better decisions.

Mortgage Rates Inch Lower

Mortgage rates remained below the 5% mark, with the benchmark conforming 30-year fixed mortgage rate inching lower to 4.95%, according to Bankrate.com’s weekly national survey. The average 30-year fixed mortgage has an average of 0.37 discount and origination points.

The average 15-year fixed mortgage stepped down to 4.14%, and the larger jumbo 30-year fixed rate reset the low point of the year at 5.40%. Adjustable rate mortgages were also lower, with the average 5-year ARM dipping to 3.69% and the 7-year ARM dropping to an even 4%.

Mortgage rates were lower this week, but the movement in mortgage rates continues to be tame. Mortgage rates have remained within a one-third percentage point band since mid-December. The Federal Reserve did little to rock the boat, holding interest rates steady and changing very little in the post-meeting statement.

Fed Chairman Ben Bernanke’s initial press release was a historic event, but uneventful. While the Federal Reserve confirmed that they will halt their bond purchases at the end of June, this has been widely expected and any resulting volatility in bond yields or mortgage rates is far from certain. Mortgage rates are closely related to yields on long-term government bonds.

The last time mortgage rates were above 6% was Nov. 2008. At the time, the average 30-year fixed rate was 6.33%, meaning a $200,000 loan would have carried a monthly payment of $1,241.86. With the average rate now 4.95%, the monthly payment for the same size loan would be $1,067.54, a difference of $174 per month for anyone refinancing now.

Original Article