Beefing up inadequate insulation is one of the quickest energy-payback projects you can do, resulting in lower heating and cooling bills and increased comfort.

By: Jeanne Huber

Blanket-type insulation comes in 15- or 23-inch widths. It's designed to fit with typical framing. Image: Owens Corning

Even if you live in an older home, there’s no reason you need to shiver through the winter or roast in the summer. If your house doesn’t have enough insulation — common in homes built before 1980, when energy awareness began to take hold — bringing it up to current standards will make it more comfortable all year long. Plus, you’ll save anywhere from 10% to 50% on heating and cooling bills. The amount of savings for upgrading insulation depends on many factors, including where you live, what type of heating system you have, and how much insulation you add.

How to compare different types of insulation

On each type of insulation, a label states the R-value per inch, a measure of resistance to heat transfer. The bigger the number, the more effective the insulation. Where space is tight, such as within wall cavities, you need a high R-value per inch. In an attic or under a floor, where there is more room, you can boost the insulation value of a lower-rated material simply by using a thicker layer. As a rule, the more insulation you add, the more money you’ll save. But there is a point beyond which you can spend more on materials than you’ll recoup in lower energy bills. The tipping point varies depending on where you live. Consult the Department of Energy’s zip-code specific recommendations for the right amount of insulation for your climate.

Adding insulation in the attic

The attic is a great place to start, because adding insulation there is quick, easy, and cost-effective. (To make any insulation upgrade more cost-effective, it’s a good idea to seal air leaks first.) In the Northeast, for example, upgrading attic insulation from R-11 to R-49 would cost around $1,500 if you hire a pro—half as much if you do it yourself—and, depending on the type of heat you have, save about $600.

To determine how much to add, look up the recommended amount for your area, then subtract the value of your existing insulation. If you don’t know, you can figure it out using the Home Energy Saver online energy audit tool.

There are two ways to improve attic insulation. In unfinished space, you can simply add layers to what is already on the floor. Or, if you’re thinking about finishing the attic, you can put the insulation against the roof. Insulating the roof is the better method if heating and cooling ducts pass through the space, or if you live in a humid climate and want to cut down on musty smells coming from the attic.

If you’re doing the job yourself, blanket-type material is easiest to work with. Just be careful not to compress it or it won’t be as effective. If you’re hiring a contractor, go with loose-fill cellulose or fiberglass, which fills crevices better. You’ll pay a pro around $1 a square foot to blow in material; DIY batts cost about half that.

If you’re insulating the roof, sprayed foam polyurethane works best because it molds to rafters, blocks water vapor, and has a high R-rating per inch. Expect to pay about double the cost of loose-fill insulation.

No matter which method you choose, federal tax credits of up to $500 are available to defray the cost of materials.

Adding insulation to walls on main floors

It’s fairly easy to add insulation in stud bays where none exists. (To check, cut the power to a few outlets on exterior walls, then unscrew and look behind the cover plates.) A contractor drills small holes through the inside or outside wall and blows in material. Costs range from around $1.25 per square foot for loose-fill fiberglass, cellulose, or rock wool to $4.40 for polyurethane foam, which insulates about twice as well.

If your walls already have some insulation, you probably can’t add more without tearing into the drywall or plaster. That’s not cost effective unless you’re remodeling, so the best strategy may be to wait until you need to replace siding. Then you can add insulating sheathing underneath it.

Basements and crawl spaces

Even though hot air rises, homes lose heat in all directions. So besides insulating the top and sides of your house, you also need to insulate the bottom, where as much as 30% of energy loss can occur. As with the attic, you have two choices: Insulate under the bottom floor and treat the crawl space or basement as outdoor space, or insulate the walls and treat the area as indoor space. In that case, you would close off all exterior vents except those needed for combustion air or exhaust.

Though floor insulation is more common, wall insulation has many advantages, including cost—it takes about a third less material to insulate the walls of a 36-by-48-foot basement as to insulate the subfloor above. A key detail, not understood by all builders, is to place a layer of rigid foam insulation against the foundation to keep moisture from condensing against the cold walls. If you want to finish the basement, you can cover the foam with a stud wall, fill it with unfaced fiberglass insulation, and cover with drywall.

Jeanne Huber is the author of 10 books about home improvement. She writes a weekly column about home care for the Washington Post.
Reprinted from HouseLogic (www.houselogic.com ) with permission of the NATIONAL ASSOCIATION OF REALTORS® Copyright 2010. All rights reserved.

“The European debt crisis overshadowed improving economic indicators for the U.S. and allowed Treasury bond yields and fixed mortgage rates to ease for another week,” Frank Nothaft, Freddie Mac’s chief economist, said in explaining why mortgage rates continue to inch down.

Here’s a closer look at how rates fared for the week ending May 17, according to Freddie Mac’s weekly mortgage market survey:

• 30-year fixed-rate mortgages: averaged a new record low of 3.79 percent this week, with an average 0.7 point, down from last week’s previous record of 3.83 percent. Thirty-year mortgage rates have been below 4 percent since December. A year ago at this time, 30-year fixed-rate mortgages averaged 4.61 percent.
• 15-year fixed-rate mortgages: also dipped to new record lows this week, averaging 3.04 percent, with an average 0.7 point, dropping from last week’s previous record of 3.05 percent. Last year at this time, 15-year fixed-rate mortgages averaged 3.80 percent.
• 5-year adjustable-rate mortgages: averaged 2.83 percent, with an average 0.6 point, rising slightly from last week’s 2.81 percent average. Last year at this time, 5-year ARMs averaged 3.48 percent.
• 1-year ARMs: averaged 2.78 percent, with an average 0.5 point, also up slightly from last week’s 2.73 percent average. A year ago at this time, 1-year ARMs averaged 3.15 percent.

Source: Freddie Mac

Copyright National Association of REALTORS®. Reprinted with permission.

This is third in a series of posts about steps homeowners can take this Spring to save money.

Repairing worn windows, rather than replacing them, can save you thousands of dollars.

By: Dave Toht

Repairing windows helps you save energy while avoiding expensive replacement costs, and most fixes can be completed in less than an hour. Image: MOHR Historic Restoration of Jacksonville, FL/MOHRjax.com

Perhaps your wood sashes are cracked, peeling, and prone to rattle in the wind. Or the insulated glass in your vinyl casement is “blown” — filled with foggy condensation. Maybe your aluminum slider gave up sliding years ago. You’ve got a window problem, and you know it’s going to cost you.

Confronted with such ills, many home owners leap to the conclusion that it’s time to replace their windows. That’s an expensive proposition: A double-hung 3×5-foot vinyl replacement runs about $525 installed. While it’s an investment that’ll pay off if you sell your house (about a 68% return, according to Remodeling Magazine’s Cost vs. Value Report), not every household can afford the initial outlay. Is there another way?

Fact is, none of the symptoms mentioned above necessitate new windows. By repairing windows with a few dollars and some sweat equity, most problems can be remedied. In addition, you’re likely to improve the energy efficiency of the windows you fix. You can avoid the cost of window replacement by addressing some of these scenarios.

All-wood windows

When maintained, wood windows can last 100 years or more; if left unpainted, they quickly degrade. However, even after years of neglect, the damage is often superficial, looking worse than it is. There’s no need to assume the window must be rebuilt. Areas of rotted wood can be renewed with penetrating liquid epoxy. Fill holes in sills and sashes with epoxy putty—it sands easily and is paintable.

Cost: About $20 for enough epoxy putty to mend a 3×5-foot window, $10 for paint and primer to protect your work. Allow three to six hours per window for the restoration.

Because sashes and stops wear with age, wood windows are prone to gaps where air can penetrate. Popular spring bronze weather stripping has a V-shape cross section. The flexible shape applies continual pressure against the window sash and permanently seals gaps while allowing sash movement. Other weather-stripping solutions include tubular vinyl and adhesive foam.

Cost: About $21 for enough spring bronze weather stripping to seal a 3×5-foot window. Allow an hour per window for installation.

Older double-hung wood windows have counter weights to assist raising the sashes. These can be repaired to working order, but the real problem is that the weights and pulleys require a sizeable cavity in the wall that’s not insulated. This void contributes to heat loss. New replacement lifting mechanisms attach to the sash, allowing the cavity to be filled with expandable foam.

Cost: $38 for a replacement lifting mechanism, $4 for spray foam insulation. Allow four hours per window for installation.

Non-wood windows

Windows made of vinyl, fiberglass, and aluminum will last at least 20 years. Unfortunately, the gaskets that seal their sashes don’t have the same life expectancy. Repair holes and small rips by removing the sash and applying silicone sealant to the damage. To replace the gaskets, contact the window manufacturer or a specialty supplier for replacements.

Caulk any punctures or cracks in vinyl- or aluminum-clad windows to prevent water damage to the wood core. Repair loose aluminum sashes by tightening the screws at the corners; try coating the screw threads with a dry-locking compound made for especially for screws.

Cost: A few dollars for silicone or replacement gaskets and parts. Allow an hour or so per window.

Energy savings

Any repairs that improve the ability of your windows to seal against air leakage will yield energy savings. The worse shape your windows are in, the greater the potential savings on your fuel bill—a Vermont field study suggests that sealing a single loose window can save $14 to $20 annually.

But don’t expect more than a couple hundred dollars overall—even some total replacements don’t yield more than that. The real savings is the money you didn’t spend on replacement windows.

Glass issues

In most wood windows, glass is “glazed” in place, held with small metal pieces called points and sealed with putty. Even when the glass is sound, cracked and missing putty should be replaced. Glazing takes practice but is well worth the trouble.

Cost: $6 for points and putty; $32 for two pieces of single-pane glass to refit a 3×5-foot window. Allow three hours per window.

Replace cracked single-pane glass. To remove the old glass from a vinyl window, pry away the vinyl stop with a putty knife. On aluminum windows, the glass is wrapped with a rubber gasket and held by a metal strip. Remove both to free the glass. To re-install, a bead of silicone seals the glass on a vinyl window; for a metal window, clean and reuse the rubber gasket.

Cracked or fogged double-pane windows should be resealed or replaced by a glass fabricator—find them in the Yellow Pages or online directory.

Cost: $175 for double-pane glass to refit a 3×5-foot window.

Hardware failures

Before replacing a balky cranking mechanism on a casement or awning window, try cleaning it and lubricating with white lithium grease. If that doesn’t do the trick, replace the mechanism.

Cost: About $3.50 for lithium grease; $40 should you need a new mechanism. Allow a half hour for lubrication per window; two hours for replacement.

Broken or paint-encrusted sash latches should be replaced.

Cost: From about $10 for a standard brass latch to $40 for an antique reproduction. Latches come in a range of finishes, from brushed metal to colored enamel. Allow about 15 minutes for the switch out.

Dave Toht has written or edited over 60 books on home repair and remodeling for The Home Depot, Lowe’s, Better Homes & Gardens, Sunset, and Reader’s Digest. He’s a former contractor with decades of hands-on experience.

Reprinted from HouseLogic (www.houselogic.com ) with permission of the NATIONAL ASSOCIATION OF REALTORS® Copyright 2010. All rights reserved.

The Houston housing market experienced continued growth in April as home buyers helped support an 11th consecutive month of positive sales. The volume of single-family home sales was the greatest for a single month since last August, and average and median pricing achieved the highest levels for an April in Houston.

According to the latest monthly data prepared by the Houston Association of REALTORS® (HAR), April sales of single-family homes climbed 9.6 percent versus one year earlier. That marks the second biggest monthly increase of 2012.

“The Houston real estate market continues to benefit from a healthy economic climate led primarily by the addition of 96,000 new jobs locally in the past 12 months, according to the Texas Workforce Commission,” said Wayne A. Stroman, HAR chairman and CEO of Stroman Realty. “Increases in pending home sales along with declines in active listings continue to keep our housing inventory at the lowest levels we’ve seen in more than three years.”

The April single-family home average price rose 11.2 percent year-over-year to $223,328, the highest level for an April in Houston. The median price—the figure at which half of the homes sold for more and half sold for less—rose 8.2 percent to $160,120, which is also a record high for an April in Houston.

Foreclosure property sales reported in the Multiple Listing Service (MLS) fell 10.1 percent year-over-year in April. Foreclosures comprised 18.8 percent of all property sales, which is down dramatically from the 27.8 percent level recorded at the beginning of the year. The median price of foreclosures in April ticked up 1.1 percent to $79,900.

April sales of all property types in Houston totaled 6,156, an increase of 9.9 percent compared to April 2011. Total dollar volume for properties sold during the month soared 21.2 percent to $1.3 billion versus $1.1 billion a year earlier.

April sales of single-family homes in Houston totaled 5,136, up 9.6 percent from April 2011. This marks the 11th consecutive monthly increase.     

Broken out by housing segment, April sales performed as follows:

• $1 – $79,999: declined 9.7 percent
• $80,000 – $149,999: increased 3.7 percent
• $150,000 – $249,999: increased 16.6 percent
• $250,000 – $499,999: increased 35.7 percent
• $500,000 – $1 million and above: increased 20.1 percent

At $223,328, the average price of single-family homes rose 11.2 percent from last April, resulting from a surge in sales activity among homes priced from $250,000 and above and a decline in the sales of homes priced below $80,000. The average price achieved an April high for the Houston market. At $160,120, the median sales price for single-family homes increased 8.2 percent year-over-year, also achieving an April highpoint.

HAR also breaks out the sales performance of existing single-family homes throughout the Houston market. In April 2012, existing home sales totaled 4,317, a 9.1 percent increase from April 2011. The average sales price rose 11.4 percent from last year to $210,807 and the median sales price increased 9.0 percent to $149,900.

The number of townhouses and condominiums that sold in April leapt 12.4 percent compared to one year earlier. In the greater Houston area, 472 units were sold last month versus 420 properties in April 2011.

The average price was flat at $168,007 in the April 2011- April 2012 comparison. The median price of a townhouse/condominium edged up 3.3 percent to $135,000.

Demand for lease properties tapered in April for the first time in more than a year. Single-family home rentals ticked up 1.5 percent compared to April 2011 earlier and year-over-year townhouse/condominium rentals declined 8.7 percent.

When you turn the outside water back on this spring,  check for leaks.

Reprinted from HouseLogic (www.houselogic.com ) with permission of the NATIONAL ASSOCIATION OF REALTORS® Copyright 2011.  All rights reserved.

By: Barbara Eisner Bayer

You can refinance or recast your mortgage. Or you can create your own DIY mortgage restructuring plan. We compare so you can decide.

Send in extra money to pay down principal

In the mid-1970s, Marc Eisenson coined the term “banker’s secret,” which promoted a cost-saving idea: Pay more than required on your monthly mortgage, and you’ll save a pile of money. Eisenson says, “It was a secret that bankers knew, but didn’t share with their customers.”

Here’s how it works. If you take out a $200,000 30-year mortgage at an interest rate of 6%, and hold it to term, you’ll pay a total of $382,537.97 for your home, including interest of $182,537.97. However, if you send in just $100 each month in additional principal, you’ll save more than $49,000 in interest over the term of the loan.

There’s another huge perk: You’ll pay off the loan five years and five months ahead of schedule. This strategy puts you in total control of the restructuring process, and there are no fees involved.

Another way to pay off your loan early is to use a bi-weekly payment plan. Banks and third-party companies can implement this plan for you, but they’ll charge hundreds or thousands of dollars in fees. We don’t recommend you pay for the service unless you lack the self-discipline to make the payments yourself.

With this strategy, you make half your monthly mortgage payment every two weeks, which equals 13 payments a year instead of 12. With bi-weekly payments on a 30-year $200,000 loan, you’ll save more than $49,000 in interest over the course of the loan, and pay it off approximately five years earlier.

Other ways to easily do it yourself:
Make one additional mortgage payment per year at any time.
Divide your monthly payment by 12, and add that extra amount each month when you pay your mortgage.

Recast mortgage for lower payments

If you want to lower your monthly payment and have at least $5,000 to contribute, you can request a mortgage recast. In this scenario, you don’t change the interest rate or term of your mortgage, you change the principal balance, and the term begins anew.

Here’s how it works: After 10 years of paying your 30-year mortgage with a 6% interest rate and a monthly payment of $1,432.86, your balance is $200,000. With a mortgage recast, you contribute an additional $20,000, and have a new principal amount of $180,000, with the same remaining 20 years to pay it off at 6%. However, your new monthly payment is $1,289.58, for a savings of $143.28 per month.

There’s a small fee for this service — approximately $250. The bank gets nothing out of this except retaining your loyalty, so they don’t promote it. It’s up to the lender whether it’ll do it, so all you can do is ask. It’s also likely to be a lengthy process. You have nothing to lose, however, except a higher monthly payment.

Refinance your loan

The most common way to restructure your loan is with a mortgage refinance, where you replace your current mortgage with a new one at a lower interest rate. If you took that same $200,000 balance on your 6% mortgage and refinanced into one with a 5% interest rate, you’d reduce your monthly payment from $1,199 to $1,074, saving $125 monthly.

Refinancing may be challenging to get approved for in a tight lending environment, where you need stellar credit scores and a steady job history. You’ll also need to pay closing costs, which can run 3% to 6% of the loan amount.

These tips are appropriate if you’re current on your mortgage and have extra money. Struggling home owners should consider the government-sponsored Home Affordable Modification Program (HAMP) for mortgage restructuring.

Barbara Eisner Bayer has written about finance for Motley Fool, Daily Plan-It,  and Nurse Village, and is the former Managing Editor of Mortgageloan.com and  Credit-land.com. She splits time between a beachfront condo and a mountain  retreat.

Reprinted from HouseLogic (www.houselogic.com ) with permission of the NATIONAL ASSOCIATION OF REALTORS®
Copyright 2011.  All rights reserved. 

Pending sales continue to increase. It appears there was an increase of 3 or 4% in the number of homes actively on the market. Normally we see a much larger increase in homes for sale during April. Prices in some key markets are beginning to rise slowly. Builders are beginning to show a little interest in lots putting upward pressure on land prices, again in select markets.

Check my Blog later this month for more details on the dynamics of Houston’s residential market and detailed analysis of specific markets for the First Quarter.

I endeavor to keep my clients and contacts informed about the trends and dynamics of Houston’s market for homes. I am always available to answer questions and provide information. If you know anyone who is thinking of buying or selling a home, your referral is the highest compliment I could receive.

A little later today, check back for an early look at Houston home sales for April, 2012.

For homes priced over $1 million, four more were sold in the First Quarter of 2012 than in 2011. The number of homes sold priced under $750,000 declined by one due to lack of availability. The price range $750,000 to $1 million also experienced a decline. In many cases increasing prices moved some homes above the $1 million mark.

My experience during the First Quarter of selling one of the homes priced over $2 million is there are very few really good homes currently on the market. A good home properly priced in River Oaks will not remain on the market long.

Shown below is an analysis of sales of homes in HOuston’s River Oaks/Avalon neighborhoods by price segment during the  First Quarter:

Information in this blog post about numbers of homes sold is based upon information from the Houston Association of Realtors® or its MLS for the period January 1, 2010 to April 1, 2012.