My house is a little over 20 years old and my cooling system just hasn’t been up to snuff this year so I called a heating and cooling contractor to get it checked out. They told me my equipment would probably last a couple more years but was not nearly as efficient as the new stuff they’re making today. Given the state of the economy, and my own personal finances my first thought was to just let it go until I could afford it. Then the HVAC contractor mentioned some great incentives that are available this year:

1) The manufacturer (Carrier – http://www.residential.carrier.com/index.shtml ) was offering a $1,000 rebate on certain high efficiency furnaces and air conditioning systems
2) The IRS has a tax credit of up to $1,500 (http://www.energystar.gov/index.cfm?c=tax_credits.tx_index ) for the purchase of certain high efficiency furnaces and air conditioning systems
3) The State of Michigan has a rebate incentive of up to $650 (www.michrebate.com )for the purchase of a new high efficiency furnace with a variable speed blower system

All told, I could save $3,150 by installing a new system this year. Wow!
We decided to go ahead and have the whole new system installed and all of the credits and rebates paid for nearly ½ of the total cost – incredible! The contractor we used – Sutton and Sons (248) 673-2224 – did a great job. They showed up on schedule, got the job done on time, cleaned up the mess, took the old equipment with them and showed us how the new system works. My house actually gets cold on a 90 degree day now and the system is so quiet you don’t even know it’s running. Because we installed a 95% efficient unit with a variable speed blower we should also see a difference in our utility bills. I couldn’t be any happier.

If you, or anyone you know has an older HVAC system in the home they own, or if they just bought a new house that needs a new system, there has never been a better time to upgrade. Most of these credits expire at the end of the year so get busy!

Written by:
Ken Mascia
248.644.1200
kmascia@primecapitalmortgage.com

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Few words sting like the ones that inform you that you’re being laid off — especially today, with jobs so hard to come by. If you’re a homeowner, the blow of a job loss can be even worse. In households with more than one wage earner, halving the monthly income can severely stretch a budget. And in households where there’s one breadwinner, having zero income can be devastating. A rainy day fund helps, but it’s important to craft a plan early about how you’re going to get through the rough patch. More people are facing this nightmare today: While the volume of subprime mortgages headed to foreclosure is falling, the volume of prime, fixed-rate mortgages defaulting is on the rise, according to statistics from the Mortgage Bankers Association. The MBA’s chief economist said that’s a result of rising unemployment.

“If you don’t have the prescribed three to six months income in the bank (now eight to 12 months due to how long it takes to replace that job), you’re really in deep trouble with some troubling decisions to make,” said Gail Cunningham, vice president of public relations for the National Foundation for Credit Counseling, in an e-mail. The NFCC is a national, nonprofit credit-counseling network. “We always advise people to pay their living expenses in full (this includes the house payment), followed by any secured debt (usually the car payment), and then the creditors. This will keep a roof over your head, food on the table, utilities paid, medicine in the cabinet, the kids at day care, etc. Once the money runs out, no one beneath that line gets paid. However, this assumes that there’s either some savings to fall back on or another income source,” she said.
Continue reading ‘Lose Your Job, Keep Your Home – Ask for Help Before it’s Too Late’ »

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Data through June 2009, released by Standard & Poor’s for its S&P/Case-Shiller Home Price Indices, the leading measure of U.S. home prices, show that the U.S. National Home Price Index improved in the second quarter of 2009. The S&P/Case-Shiller U.S. National Home Price Index- which covers all nine U.S. census divisions- recorded a 14.9% decline in the 2nd quarter of 2009 versus the 2nd quarter of 2008. While still a substantial negative annual rate of return, this is an improvement over the record decline of 19.1% reported in the 1st quarter of the year. The 10-City and 20-City Composites recorded annual declines of 15.1% and 15.4%, respectively. These are also improvements from their recent respective record losses of -19.4% and -19.1%.

“For the second month in a row, we’re seeing some positive signs,” says David M. Blitzer, Chairman of the Index Committee at Standard & Poor’s. “The U.S. National Composite rose in the 2nd quarter compared to the 1st quarter of 2009. This is the first time we have seen a positive quarter-over-quarter print in three years. Both the 10-City and 20-City Composites posted monthly increases, as did most of the cities. As seen in both seasonally adjusted and unadjusted data, there are hints of an upward turn from a bottom. However, some of the hardest hit cities, especially in the Sun Belt, show continued weakness.”
Continue reading ‘Positive Signs: Home Prices on an Upswing in Second Quarter 2009’ »

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The statistics are sobering. According to RealtyTrac’s Midyear 2009 U.S. Foreclosure Market Report, more than 1.9 million foreclosure filings were reported on more than 1.5 million U.S. properties in the first half of 2009-a 9% increase from the previous six months. Lurking in the shadows? A large wave of bank-owned properties yet to hit the market. For real estate professionals, the distressed property environment has given new meaning to being at the “center of the transaction.” Never before has there been a more critical time for agents and brokers to step forward.

“In these trying times, the future of our industry may be measured by the way we perform in this crisis,” says John Featherston, CEO & publisher of RISMedia and chairman & co-founder of RISMedia’s Top 5 in Real Estate Network®. “In this new age of residential real estate, the hundreds of thousands of homeowners facing foreclosure have become the focal point of our industry. Consumers are turning toward real estate professionals for answers and solutions. A property that goes into default or a distressed situation affects all the properties in the community and affects the consumer’s overall acceptance of the product we represent, which is a homeowner. The individuals we have interviewed for this story represent how several key leaders have responded to the crisis.”
Continue reading ‘Distressed Properties: The Industry Responds’ »

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Just 10 years ago we were approaching the new millennium not with wonder and anticipation but with fear and loathing. Seems someone forgot to tell the computers how to change their clocks and right at the stroke of midnight the modern world as we know it would end, not with a bang but a whimper.

Banks couldn’t shuffle money and trains would not run; sure calamity and ruin awaited us all.

It didn’t happen, of course, but it was good at generating sales as people stocked up and waited for the power to go out. As a matter of fact, it generated a lot of generator sales, most of which now sit in people’s garages and have never been used.
Continue reading ‘Is the Foreclosure Panic the Y2K of Our Decade?’ »

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To help create jobs and set the stage for a strong recovery, the National Association of Home Builders (NAHB) yesterday called on Congress to extend and enhance the $8,000 first-time home buyer tax credit due to expire on December 1.

Specifically, NAHB is asking Congress to extend the home buyer tax credit program through November 30, 2010 and make it available to all buyers of principal residences.

“If Congress acts to extend the tax credit program, it would spur 383,000 additional home sales, including 80,000 housing starts, creating nearly 350,000 jobs over the coming year,” said NAHB Chairman Joe Robson, a home builder from Tulsa, Okla. “That’s good for the economy and good for America.”
Continue reading ‘Builders Call on Congress to Extend and Enhance Home Buyer Tax Credit’ »

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The U.S. economy has suffered its biggest shock since the Great Depression. Trillions of dollars in wealth has vanished. Businesses are struggling, and state and local governments grapple with huge and painful shortfalls.

Still, last week’s news-including the surprising surge of demand for the “Cash for Clunkers” car-buying incentives-suggested that the economy is finally turning a corner. As sure as sunshine follows storms, recoveries follow downturns.

But what kind of recovery? Ironically, the answer will be shaped partly by U.S. consumers-the same consumers whose excesses helped fuel the last quarter-century of growth and contributed to its crashing end. If they do not increase their spending soon, the economy’s recovery is likely to be slower and less vigorous. It may take years to unravel what caused the panic of 2008-09, but it already seems clear that consumers share some of the blame, even if they had plenty of enablers within the finance industry. Lured by easy credit and inexpensive products from Asia, and bolstered by buoyant home prices and stock portfolios that made them feel wealthy, U.S. consumers quit saving and went shopping.
Continue reading ‘Economic Recovery Likely to Be Slower and Less Vigorous If Consumer Spending Doesn’t Increase’ »

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