Home-improvement tools make great gifts

Well, it's time once again to be thinking about what to get for the avid do-it-yourselfer on your holiday shopping list, so here are some great tool suggestions -- listed in order of price -- that are well worth considering. (Prices are MSRP, and the tools are commonly available through home centers, hardware stores, lumber yards and other retailers, as well as online).

And this year a big thanks to all of the manufacturers who are getting rid of those irritating and dangerous blister packs in favor of more user-friendly packaging!

• Fat Max Push Button Slip-Joint Pliers (Stanley, $9.99) and Groove-Joint Pliers (Stanley, $19.99): Stanley has improved adjustable pliers technology by adding a push-button lock that keeps the jaws where you set them, without slipping. The 8-inch slip-joint pliers have three jaw positions instead of the traditional two, and the 10-inch groove-joint pliers adjust to 17 different settings. Both have hardened teeth, multipurpose jaws and cushioned, slip-resistant handles.
  
  
• Gecko Level (Black & Decker, $24.99): Black & Decker's clever 24-inch aluminum box level has "Gecko Grip" friction pads that really help keep the level from slipping when marking lines. There's also a convenient 9-inch torpedo level tucked away in an on-board holder, and the torpedo level doubles as an accurate wood-stud finder.
  
  
• Rota-Driver (Black & Decker, $29.99): Here's a compact screwdriver with a head that rotates into four different positions to simplify reaching into even the tightest, most confined spaces. The compact 4.8 volt Rota-Driver is comfortable to hold, has a built-in work light, and accepts any 1/4-inch hex-drive tips. The price includes a plug-in charger and two tips.
  
  
• Carryalls 20-inch Large Mouth Tool Bag (Husky, $36.99): Made from tough, water-resistant material, this soft-sided tool bag has a big, zippered inside compartment for larger tools, and 22 inner and outer pockets for smaller stuff. It features comfortable reinforced carrying handles and a detachable padded shoulder strap. There is also a smaller, 14-inch model for $19.99.
  
  
• Digital Angle Finder (Skil, $59.99): For measuring inside or outside angles from 0 to 220 degrees, this digital tool has an easy-to-read screen that displays the angle in 1/2-degree increments, and then converts it to the proper miter-cutting angle at the push of a button. The Digital Angle Finder also doubles as a level, straightedge and ruler.
  
  
• Scrolling Orbital Jigsaw (Skil, $79.99): This powerful, 6-amp saw has a laser guide for accuracy, and a five-position cut control to adjust the cutting action from smooth to fast. There's a top-mounted scrolling handle that lets you turn the blade without turning the saw, a dust blower and a built-in work light. You can change the blades and adjust the foot without tools, and the blades are stored in an on-board holder. The package includes a fitted hard-shell case and a blade assortment.
  
  
• Black Chrome Socket Set (Stanley, $99.99): First of all, this socket set just looks cool. All of the corrosion-resistant wrenches and sockets are black, with contrasting laser-etched markings that let you quickly identify the sizes. The 99-piece set includes ¼-inch and 3/8 inch sockets in metric and SAE, 1/4- and 3/8-inch ratchets, 10 combination wrenches and more, all in a fitted hard-plastic carrying case.
  
  
• Motion-Activated Laser Compound Miter Saw (Skil, $179.99): The unique motion-activated laser beam projects dual red lines before the saw is turned on, allowing you to use both hands to align the cut. The saw angles and bevels to 45 degrees in each direction, and has built-in supports for longer boards and clamps for stable cutting. For crown moldings, there are built-in stops for the proper miter and bevel angles, as well as molding stops to hold the molding in an angled position if you prefer to cut it that way. Also included are a dust bag and a 10-inch, 40-tooth carbide-tipped blade. This is a saw that's really packed with features for the price.
  
  
• 18-Volt Lithium Ion Drill, Model 86006 (Ridgid, $189): This is an excellent cordless drill kit that offers the professional or the serious do-it-yourselfer everything he or she could want. The latest lithium ion technology makes the batteries lighter without sacrificing power, resulting in a drill that is light (under 4.5 pounds), very powerful and feels well balanced in your hand. It features a 1/2-inch keyless chuck, 24-position clutch, two-speed transmission for better power control, and trigger-controlled variable speed. The handle has a comfortable, overmolded grip; there's a built-in work light; and the high capacity, slide-in batteries recharge in just 30 minutes. Also included are a charger, two batteries and a soft-sided carrying bag.

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source: lodinews.com

House bill may worsen climate for subprime borrowers

In the wake of the subprime crisis, the market has turned against all except "cream-puff borrowers" -- those with no weaknesses. The cream-puffs can borrow today on pretty much the same terms as before the crisis. But borrowers with blemishes on their applications are paying much higher prices and face a much higher risk of being turned down altogether.


As if that is not bad enough, The Mortgage Reform and Anti-Predatory lending Act of 2007 (HR 3915), now winding its way through Congress, would worsen their plight. That is not the intention, of course, but the law of unintended consequences has a home in the home loan market.


Blemished borrowers have one or more of the following risk factors: They can make only a very small or no down payment; they cannot fully document their income and assets; their property is something other than a single-family home; their loan is intended to raise cash or to purchase an investment property; they have low credit scores; their income is low relative to their expected total obligations; and their mortgage carries an adjustable rate that will result in substantially higher payments in a few years.


During the go-go years (2000-2005), the mortgage market was extraordinarily tolerant of risk factors. It was not unusual to see five of them present in an accepted mortgage, a phenomenon termed "risk layering." Lending to a borrower who had no money for a down payment, who could not document adequate income and had a poor credit history was a kind of market insanity associated with the rapid run-up in house prices. Inflation of house prices converts even the worst loans into good loans. When the housing bubble burst in 2006, the chickens came home to roost in the form of mortgage defaults, which are rising to levels not seen since the depression of the 1930s.


Markets tend to overreact. Just as the housing bubble was accommodated by insanely liberal lending terms, the pendulum has now swung toward Scrooge-like stringency. The price increments associated with risk factors are now two to three times as high as they were a year ago, and risk layering has gone way down. Roughly speaking, if you have two risk factors, the price is substantially higher, and if you have three, the deal is rejected.


A major provision of HR 3915 establishes "minimum standards for mortgages," which include requirements that borrowers have an "ability to repay" and that they receive a "net tangible benefit" from a refinancing. What these rules have in common, in addition to their discriminatory impact on borrowers already victimized by misfortune, is their vagueness and lack of specific operational guidelines. In an article I wrote recently on the net-tangible-benefit rule, I gave example after example where the ultimate determinant of whether or not there was a net benefit to the borrower could not be known by the lender without reading the mind of the borrower.


The inability to know whether or not they are in compliance creates risk for lenders, which must translate into higher costs for borrowers. But HR 3915 also provides a way to avoid this risk. It offers a "safe harbor," which is a presumption that the standards have been met, provided that the loan at issue is a "qualified mortgage" or a "qualified safe harbor mortgage."


A "qualified mortgage" is one with an interest rate that does not exceed the rate on Treasury securities or an average mortgage rate by more than 3 percent or 1.75 percent, respectively. On second mortgages, the maximum spreads are 5 percent and 3.75 percent.


A "qualified safe harbor mortgage" is a loan that is fully documented, is not a negative amortization ARM, and either meets an income adequacy test, has a fixed payment for at least five years or is an ARM with a margin of less than 3 percent. The overlap between a qualified mortgage and a qualified safe harbor mortgage will be very high.


The combination of vague standards and a safe harbor means that lenders will classify loans with regard to whether or not they belong to the safe harbor. Loans that do not belong will pay a higher price or not be made. Loans that won't qualify for the safe harbor are those with the most significant blemishes.


The safe harbor removes some of the sting from the imposition of vague standards, because most loans will qualify for the safe harbor. But not all will qualify -- a new subclass of mortgages will be created that will either be priced even worse than they are now or will disappear. These are mortgages with multiple blemishes. Already clobbered by the market, they will get the coup de grace from Congress.

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source: lodinews.com

Pros, cons of buying home in today's market

When the housing market slows down, buyers often wait on the sidelines for a clear sign that the market has recovered. The only problem with this strategy is that you can only know for sure that a market has turned through hindsight. In other words, you can't time the market.


A slow market is perceived as an opportunity by some buyers, as it takes longer for listings to sell. The inventory of unsold listings tends to grow, giving buyers more choice than is the case in a hot seller's market when listings sell quickly.


In a high-inventory market, there are usually fewer multiple offers so buyers can cut a better deal with the seller. However, it pays to be careful about what you buy and how you finance the purchase.


HOUSE HUNTING TIP: The least expensive home in an area may not be the best investment. Unless you are a contractor with years of experience fixing up properties, you should hire the best inspectors you can find to look carefully at the condition of a property before you buy.


Many home buyers, particular first-timers, don't give enough attention to the cost of maintaining a home. Home maintenance is a necessary part of home ownership. It can be expensive, particularly if you need to hire others to do the work.


Some homes require more maintenance than others. A good inspector should be able to give you a good indication about how much work a home needs now and how much it will need on an ongoing basis. Buying a well-maintained home that will also have relatively low ongoing maintenance is one way to keep your overall housing costs down.


Inexperienced home buyers should resist buying a fixer-upper just because it's offered at a cheap price for the neighborhood. It's difficult to get a firm grasp on renovation costs during the inspection contingency period, particularly if it's a big job.


Remodeling projects can run over budget because of unanticipated problems like faulty electrical or plumbing, or an old furnace that goes bad. Or the city inspector could require that you do additional work to correct non-code-complying improvements done by previous owners. These sorts of costs can mount up so that you end up with far more invested in the property than it's worth on the market.


Try to avoid buying a home that has an incurable defect. This is something that you can't change, like a location next to a freeway. These homes don't hold their value well when the housing market softens.


A risk of buying in a slow market is that the value of what you buy might drop before it rises. Or, prices could stay flat for some time, which means that you won't build equity unless you pay down principal on your mortgage. If you should have to move during a time when prices are soft, you might not be able to sell for the amount you paid. To decrease this risk factor, don't buy for the short term.


Give careful consideration to how you finance your purchase. Stay away from mortgages that have short due dates and balloon payments. If the market in your area stays soft for longer than anticipated, you don't want to be caught having to refinance at a time when your home might not appraise for the price you need to complete the transaction.


THE CLOSING: A benefit of buying in a soft market is that you have the opportunity to buy at a reasonable price, without having to compete with other buyers. But, it makes no sense if you put yourself at financial risk.


Dian Hymer is author of "House Hunting, The Take-Along Workbook for Home Buyers" and "Starting Out, The Complete Home Buyer's Guide," Chronicle Books.

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Holidays have potential for wooing buyers

The neighborhood kids all arrived, bundled in holiday scarves and hats, plus patent leather shoes usually reserved for weddings and Sunday Mass at St. Theresa's.


Our old house, a large in-city place jammed with the craziness and crayons brought by four young people, was the designated gathering spot -- especially for one famous day each year. And, on that day, we were more than the most popular house in the neighborhood.


We got to host Santa ... before Christmas Eve.


Why us? Had we clearly put the most distance between naughty and nice?


The truth is that we made a successful bid at the local babysitting co-op auction fundraiser and the reward was a one-hour visit from The Big Fella.


We invited the neighborhood, the event became a huge success and our home was deemed headquarters for Santa's annual pre-Christmas visit -- regardless of who won "the hour" at subsequent co-op auctions.


On that first Santa Day, all of our friends remarked how our home always looked terrific during the holidays. I had never really thought about it very much until a six-year-old, visiting from out of town, asked: "Does your home always smell like cookies?"


As the neighborhood kids were coaxed into Kodak-moment, family-portrait poses with their parents and Santa near the Christmas tree, I sat back and thought how appealing the house actually was.


If there's one time of year when houses actually feel presentable, it's during Christmas. And it's not just the Yuletide decorations. The kids seem to help more, perhaps knowing the consequences of how whining as an art form nets fewer presents under the tree; bulky furniture and toys often are stowed in an attempt to save space, and pleasant baking sensations come consistently from the kitchen.


I know it bucks common wisdom -- which says nobody looks at or buys houses during the holidays -- but if you have your house on the market, encourage your agent to show it and have an open house during this special time of year.


Just remember that even though Santa is about ready to slide down the chimney, you won't have to move out immediately even if a buyer walks through the door tomorrow.


A lot of people can't afford the luxury of waiting until spring when all the flowers look lovely. The bottom line is that discriminating, qualified buyers are chasing homes, not seasons. In addition, there will probably be a lot more homes on the market in January and February so the competition for buyers will be greater.


Savvy agents suggest keeping a fire in the fireplace and raking up any remaining leaves in the yard. It's also not a bad idea to keep that oven churning out your favorite treats. Aroma -- and perception -- often brings out memories of great times, and tastes, from specific holiday kitchens.


Never underestimate the value of tasteful decorations. I once knew a family who actually counted on visitors after dark because their home for sale had one of the most compelling light displays in town.


Such artful holiday decorations could put more money in your pocket by bringing a better sales price. The prospective buyer sees something special, something extraordinary.


Keep the interior of your house as free of clutter as possible. Ask Santa to keep most of the presents in the sleigh if you are having an open house just before Christmas and make a point of clearing the paper and ribbons right away after they are opened.


I know, I know...Christmas has been -- historically, traditionally, statistically and realistically -- a lousy time to try to sell a house. But things have changed.


Real estate professionals say it's also a time when focused second-home buyers -- especially a growing group of baby boomers -- scout around for their dream getaway. That's because some owners would rather sell and let the new buyers prepare for the colder months ahead.


Also, consumers sometimes forget that interest rates and fees for mortgages on second homes are usually as low as their primary residence. The best time to buy is during a buyer's market, and sometimes the winter brings out the willingness in sellers.


Whatever your situation -- potential seller, potential buyer, happy staying-put homeowner -- enjoy the holidays. Chances are, your house has never looked better.


If your home looks special, and you're considering a sale, let your agent bring in some potential buyers.


Put grandma in the car and show her the neighborhood lights.

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source: lodinews.com

Benefit to getting mortgage at credit union?

Q: My son in Charlotte, N.C., is 25 years old with good credit and no foreclosure proceedings. Two years ago, he bought a new townhouse. Today, the townhouses in his subdivision are selling for less money than what he owes on the property.


He also has just relocated to a different city. He says his credit union, which is his mortgagor, will sell his townhouse for a lower price and forgive his debt. He has to sign his deed over. He will pay closing costs and the real estate commission fees. They said they will not report him adversely to the credit union. Then he walks away free and clear with no adverse effect whatsoever.


He says it will all be in writing. Is this possible? It sounds too good to be true.


A: If this is true, your son sounds like one of the lucky ones. And because he worked with a credit union rather than a big mortgage company, he may be able to strike this kind of deal.


But there may be other negative consequences to your son's predicament.


If his debt is forgiven, he may owe federal and state income taxes on the amount that is forgiven. For example, if he sells the property for $20,000 less than his mortgage, he'll owe taxes on $20,000 of what the IRS calls "phantom income." While Congress has debated eliminating that IRS requirement, at the moment it still stands. So, he could owe another $7,000 or more in taxes the following April 15th.


If your son's lender will put this deal in writing, that's good. But your son should consult with a real estate attorney to make sure that he understands exactly what the letter says, and what he must do to avoid having a "deed in lieu" on his credit history (which would be negative information).


The real issue is what happens if the property doesn't sell. Is the credit union taking over the property entirely? If it doesn't sell, will he be required to make his regular mortgage payments to the credit union? Can he afford to do that or would he be better off finding a renter who can rent the property until the rest of the units are sold in the development? Will his new employer be willing to help out at all?


Your son's experience is why I've always talked about real estate being a longer-term investment. You need to plan to stay at least five to seven years in order to ride out a downturn in the market.


Q: How many names can be on a deed? My mother passed in March, and my name is on the deed. I am 21 years old, and my aunts told me I have to move out of my house. What should I do?


A: Unfortunately, your letter is lacking the kind of detail that would allow me to provide more specific advice. But let me start at the top and give you a few options.


First, I don't think there is a limit to how many names can be listed on a deed. Technically, 20 people or more could be listed as co-owners of the property.


Did your mom own the property by herself? Did you own it with her? Are your aunts listed on the deed? You say that you're listed on the deed, but have you checked? You can go to your local recorder of deeds and see who is listed on the title to the property, and you should see what you discover.


Let's say you, your mom and your two aunts are all listed as owners of the property. If you inherited your mother's estate (let's assume you get everything and there is a will), then you might now own half of the property. You'd own your quarter share and your mom's quarter share.


I hardly think that your aunts can force you to move if you're an owner, and you're of the age of majority. But if they do own a piece of the property and they want to sell the property and you want to keep it, you'll have to figure out a way to either buy them out or negotiate how to purchase the home from them, even if you buy it over time. If you want to control the property, you have to own all of it.


It sounds as you feel a bit bullied by the situation. I recommend you sit down with a real estate attorney who can help you figure out what you own, what's happening with your mother's estate (are you the executor?), and what you should do next.

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source: lodinews.com