TOM PLANT'S HOUSTON REAL ESTATE BLOG

When deciding on a new refrigerator, here’s what you’ll need to know about features, style, price, and performance.

All refrigerators keep food cold. The major differences lie in the configuration, dimensions, and features. What particular model works best for you often comes down to size, budget, style, and energy efficiency. In terms of efficiency, Energy Star-qualified refrigerators are required by the U.S. Department of Energy to use 20% less energy than other models. A qualified fridge can curb your energy bills by $165 over the lifetime of your fridge, says Energy Star, roughly $9-$12 a year.

Cost range: $450-$2,000 and up

Likely additional costs: Delivery, installation, haul away, water line hookup for ice maker

Average life span: 14-17 years

Size: Because there are numerous refrigerator styles, each requiring specific footprints, door clearances, and height and width allowances, the place to start your search is in your kitchen. Take careful measurements of the space, including height, width, depth, and distance to nearby obstructions. “Pay special attention to upper-cabinet height,” says Anita Wiechman, a Certified Kitchen and Bath Remodeler with Omaha’s The Interior Design Firm. “Many of today’s fridges are taller than they used to be.”

Type: Fridges come in three main configurations: side-by-side, top-mounted freezer, and bottom-mounted freezer, which includes the newer French door style—two opposing half doors. 

Top-mounted freezer

The most economical fridges are the top-mounted freezer models. These largely basic machines offer the most storage capacity for the money, with models falling in the $500 to $700 range. If you’re tall, especially, you may not appreciate bending over every time you need something from the more heavily trafficked fridge. 

Energy efficiency: What these models lack in convenience they make up for in energy efficiency. Compared with side-by-side fridges, even those bearing the Energy Star seal, top-mounted fridges consume about 10%-25% less electricity thanks to their straightforward design. The difference can add up to about $14 per year. 

Reliability: As an added bonus, fridges in this class require the fewest repairs. Their basic design, coupled with the fact that few if any are outfitted with troublesome water dispensers give them solid reliability ratings as a class. The most likely component to cause trouble is the automatic ice maker.

Bottom-mount freezer

Bottom-mount freezers, including the popular French door style, are near the top of the fridge price pyramid. Both the single-door and French door configurations offer the convenience of a fully accessible upper fridge compartment above a roomy pull-out drawer freezer. Most bottom-mount freezers start at $1,000 and climb from there. French door models start at around $1,200 and climb even higher.

Energy Efficiency: Like top-mounts, bottom-freezer models are among the most energy efficient in the group. Typical Energy Star models consume 16% less energy than their side-by-side Energy Star counterparts, saving you more than $15 per year, estimating 11 cents per kilowatt hour. Although considered bottom-mounts, French door-style fridges behave more like side-by-sides when it comes to efficiency. Having two doors where there’s normally one decreases overall efficiency, raising average annual operating costs by about $10.

Reliability: According to Consumer Reports, bottom-freezer types tend to experience more repair issues than top-freezer models, particularly in units with automatic icemakers. 

Side-by-side

Because side-by-side fridges feature a pair of tall, slender doors, they require much less door-swing clearance, making them a good choice for tight spaces. These models also offer equally convenient access to portions of both the freezer and the fridge, making them a good compromise between top freezers and bottom freezers. Expect to pay between $1,000 and $1,500 for most models.

Those narrow doors may save clearance space, but you’ll have to sacrifice horizontal shelf space in return, especially in the freezer. The slender compartment means that wide items like pizza boxes and sheet pans likely won’t fit. 

Energy Efficiency: Side-by-side fridges consume more electricity than both top- and bottom-mount configurations (discounting French). Most Energy Star models cost approximately $60 per year to run compared with roughly $45 for those in the other categories. 

Reliability: Because it’s difficult to find a side-by-side fridge without a through-the-door water-and-ice dispenser, these models tend to suffer more repairs. These components have a less than stellar track record. Worse, the dispensers can increase the appliance’s energy consumption by as much as 20%. 

Features

As with most appliances, more features correlate to a higher price. You’ll pay a little more for adjustable shelves, conveniently placed compartments, and fully extending bins and baskets. You’ll also shell out more for sleek designs and stainless steel. In most cases, you won’t have to pay extra for well-lit interiors, easy-access temperature controls, and reasonably quiet operation.

Top-of-the-line models with individually controlled crisper drawers, digital fingertip controls, and whisper-quiet operation will cost you well above $2,000.

Expected maintenance/repairs: The fan and condenser coils on the rear of the machine need to be vacuumed periodically. Door seals should be checked for tightness and replaced when loose, cracked, or torn. Water filters may need replacing. Icemakers are notorious for needing repair. The compressor can blow, requiring replacement.

Where and when to shop: It’s best to shop where salespeople truly understand the product, such as an independently operated retail appliance store. Shoppers at big box stores may find themselves dealing with an employee from another department. Also, independent shops may have more latitude to offer free delivery, installation, and haul away. 

Because appliances don’t adhere to a model year like automobiles, there’s no best time to buy them. Always keep a look out for sales, specials, and tax rebates (especially for energy-efficient models). And use sites like BizRate, PriceGrabber, Shopping.com, and Shopzilla to compare prices.

Finally, some appraisers say new appliances are money well spent. In his market, Mike Neimeier, a certified residential appraiser in Cleveland, Ohio, says a homeowner is likely to recoup between 75% to 90% of the cost of new appliances when reselling the home within a couple of years. 

Douglas Trattner has covered household appliances and home improvement for HGTV.com, DIYNetworks, and the Cleveland Plain Dealer. During the 10-year stewardship of his 1925 Colonial, he’s upgraded almost every household appliance. After lengthy deliberation, he recently replaced an aging top-load washing machine with an energy-efficient front-load unit.

Reprinted from HouseLogic (www.houselogic.com) with permission of the NATIONAL ASSOCIATION OF REALTORS®
Copyright 2009.  All rights reserved. 

When deciding on a new washing machine, here’s what you’ll need to know about features, style, price, and performance.

Thanks to tougher federal guidelines, clothes washers have never been more energy efficient. Simply replacing a more than 10-year-old washer with a new Energy Star-approved model will save about $135 per year off water and utility bills, says Energy Star. Similarly, buying an Energy Star-qualified model rather than a non-qualified model will save you an average of $50 a year on your utility bills. Over the life of your new washer, you’ll save enough money to pay for the matching dryer. But not all washers are created equal. To capitalize on those improved efficiency ratings, you’ll have to bypass the least expensive machines, which lack Energy Star approval, in favor of higher efficiency top- and front-load models.

Cost range: $300-$1,000 and up

Likely additional costs: Delivery, installation, haul away

Average life span: 12-14 years

Type: The modern clothes washer comes in three basic types: conventional top-loading, high-efficiency top-loading, and front-loaders, which are all categorized as highly efficient. Not surprisingly, each category is blessed with its own set of positive and negative attributes. Choosing one over another often comes down to your budget, convenience, and appetite for energy efficiency.

Conventional top loaders 

If you’re looking for clean clothes at a budget price, conventional top-loading washers are impossible to beat. With models starting under $300, it’s easy to see why these types remain the most popular. Price isn’t the only thing these appliances have going for them. They get clothes reliably clean and do so in about half the time of high-efficiency top- and front-load models. 

Energy efficiency: Because the bulk of a washing machine’s energy consumption goes to fuel the home’s hot water heater, any reduction in water usage is a good thing. Sadly, these top loaders are the thirstiest in the bunch, gulping down about 40 gallons a cycle, roughly double that of high-efficiency types. Yearly operating costs (energy and water) for these models are about $41 if you use an electric water heater; $22 with gas heaters, according to EnergyGuide labels.

If you plan on using the appliance for at least five years, it likely pays to upgrade to an Energy Star-approved washer. You’ll save about $50 per year on utility bills compared with a new non-Energy Star model, according to Energy Star, or roughly $650 over the life of the machine.

Performance: Because conventional top-loaders use a large central agitator to clean clothes, these machines generally have smaller capacities. And while they get clothes reliably clean, they are tougher on fabric, shortening the life of items more so than other machines. 

Reliability: These machines have more moving parts than the other configurations. What they lack is sophisticated electronics and controls. The upshot: You may experience more repairs, but those repairs are generally easier, cheaper, and quicker to remedy.

High-efficiency top loaders 

These washers combine the increased water and energy efficiency of a front-loader with the convenience of a top-loader. You can expect to pay considerably more for these types over conventional top-loaders, however, with most models in the $700 to $900 range.

Energy efficiency: Because these machines don’t fill with water like conventional top-loaders, they use about half the water and, thus, energy. Consumers can expect to see average yearly operating costs in the $20-$30 range for electric water heaters and about $17 for gas. The latter figure nearly approaches the efficiency of a front-loader. Also, thanks to super-fast spin cycles, clothes don’t take as long to dry in the dryer. 

Performance: Because they lack a large central agitator, these machines boast some of the roomiest capacities of all washers. That design also makes them gentler on clothing, eliminating much of the twisting and tugging that occurs in conventional washers. But depending on the make and model, that design can also decrease clothes-cleaning ability. 

Reliability: Early adopters often suffer for the rest of us, and that may be true for some who invest in these machines. As the newest entry into the washer category, high-efficiency top loaders may experience more repair issues than more established machines. When they do, it’s often owing to the high-tech electronics that control them.

Front loaders 

Front-loading washers continue to enjoy increased market share thanks to an earned reputation for high performance, efficiency, and style. Their unique design allows them to be fully integrated into a laundry room, fitting snugly under countertops and into cabinetry. In return, you’ll have to spend north of $750 for reliable brands.

Energy efficiency: There’s no question these appliances use the least water and energy. Many boast annual operating costs as low as $14 with electric water heaters and $11 with gas, making them three times as cheap to run as non-Energy Star top-loaders. And like high efficiency top-loaders, these models employ high-speed spin cycles that significantly shorten dry times. 

Performance: Most front-load washers clean clothes better and do so more gently than any other type of machine. Their agitator-less configuration means bulky items are a snap to load. But it can’t all be good, right? To eke out that efficiency, front-loaders require the longest wash cycles. It can take more than an hour to wash a load in one of these machines versus about half that in a conventional one. (Still, because they use less water and therefore less energy to heat the water, they’re particularly efficient.) 

Reliability: Like high-efficiency top loaders, front loaders almost always employ sophisticated electronics and push-button control panels. These can be difficult and costly to repair when they fail. The major difference, however, is that these machines have been around long enough to work out most of the kinks.

Additional features

All but the least expensive washers on the market offer multiple cycles that allow you to tailor the wash to the type of clothes and/or level of grime. For those sensitive to detergent and bleach, it may be worthwhile to upgrade to a model that offers an “extra rinse” feature. Found on many moderately priced machines, the process does a better job removing cleaning agents.

Some features, like steam cleaning, may or may not be worth the money. Although reviews show that the deep-cleaning booster does a great job removing stains, the convenience can add hundreds to the price of a washer.

One of the biggest complaints regarding front-load washers is the bending required. For some homeowners, the inconvenience is enough to warrant the purchase of a pedestal that not only raises the machine, but also provides additional storage. These accessories can add $200 or more to the price.

Designer colors have finally reached the laundry room, transforming drab white units into vibrantly hued machines. But be forewarned that those arresting red, blue, and metallic silver finishes will add hundreds to the tab.

Expected maintenance/repairs: Frequently check washing machine hoses for leaks and cracks. They may need to be replaced every few years. Always make sure the washer is perfectly level, adjusting whenever it isn’t. Owing to their particular design, front-loaders require more maintenance than other washer types. They all possess watertight door seals that can trap unwanted moisture and lead to unpleasant odors. Leaving the door open between loads and routine wipe-downs may be necessary. Washers with porcelain tubs rather than plastic or stainless steel can chip and corrode. Motors and drives can fail. Electronics and circuitry can go on the fritz.

Where and when to shop: It’s best to shop at a retail appliance store where the staff understands the product. A conscientious salesperson will guide you to a model that doesn’t exceed your needs and thus saves money. Also opt for a store that offers delivery, installation, and haul away—you may be able to negotiate the transport and install into the cost of the appliance. 

Because appliances don’t adhere to a model year like automobiles, there’s no “best time” to buy. Always keep a look out for sales, specials, and tax rebates (especially for energy-efficient models). And use sites like BizRate, PriceGrabber, Shopping.com, and Shopzilla.com to compare prices.

Finally, some appraisers say new appliances are money well spent. In his market, Mike Neimeier, a residential appraiser in Cleveland, Ohio, says a homeowner is likely to recoup between 75%-90% of the cost of new appliances when reselling the home within a couple of years. 

Douglas Trattner has covered household appliances and home improvement for HGTV.com, DIYNetworks, and the Cleveland Plain Dealer. During the 10-year stewardship of his 1925 Colonial, he’s upgraded almost every household appliance. After lengthy deliberation, he recently replaced an aging top-load washing machine with an energy-efficient front-load unit.

Reprinted from HouseLogic (www.houselogic.com) with permission of the NATIONAL ASSOCIATION OF REALTORS®
Copyright 2009.  All rights reserved. 

When deciding on a new clothes dryer, here’s what you’ll need to know about features, style, price, and performance.

Article From HouseLogic.com                  By: Douglas Trattner

Essentially a box with a heater and fan, a clothes dryers is a surprisingly uncomplicated machine. But that doesn’t mean that purchasing one is equally straightforward. Despite the fact that every dryer sold today reliably dries clothes, there’s great range in terms of price, design, and features. The good news is that there’s often little difference in terms of performance.

Because there isn’t much disparity in energy consumption among dryers, these appliances aren’t required to bear Energy Guide labels, nor are they included in the Energy Star program.

Cost range: $280-$1,200 and up

Likely additional costs: Delivery, installation, haul away, gas line hookup, or 220-volt electrical outlet installation if none exists

Average life span: 12-18 years

Gas or electric: The heat that dryers generate to dry clothes comes either from an electrical heating element or a gas-fired burner. As is the case with ranges and cooktops, home setups often dictate which to purchase. Although roughly $80 more than identical electric models, gas dryers can trim as much as 50% off operating costs, depending on the price of natural gas in your area, according to the Consumer Energy Center (http://www.consumerenergycenter.org/home/appliances/dryers.html).

In addition to a gas line, gas dryers require a standard 110-volt electrical outlet. An electric dryer, however, requires a dedicated 220-volt outlet.

Appearance: Most customers select a particular model clothes dryer not for its performance, but for its appearance, says Lenny Kaminski, sales manager at B & B Appliances, an 85-year-old retail outlet in Cleveland. Simply put, many homeowners want their dryer to match their washer.

To match the shape and style of a modern energy-efficient front load washer, expect to pay at least $650. Designer colors have reached the laundry room, with vivid reds, blues, and metallic finishes available as options. To purchase a dryer in shades other than white, beige or bisque, plan on spending $600 and up.

Size and capacity: The standard width of a clothes dryer is 27 to 29 inches. Trimmer models are available for compact spaces. Drum capacity is measured in cubic feet, with most models ranging from 5.5 to 7. Higher-end models stretch up to 8 cubic feet, but experts say that much of that room is wasted. Look for one with about twice the capacity of your clothes washer.

Variable settings for time and temperature: Shoppers need not pay extra for a machine with multiple temperature settings–even the most basic models have low, medium, and high. The same is true for timed dry sessions. As shoppers move up the product ladder (starting around $350), additional options such as no-heat “air fluff” for delicates and heavy duty for jeans start to appear.

The same is true for models with “wrinkle shield,” a feature that intermittently tumbles the clothes following a dry cycle to prevent wrinkles. Pricier machines have double the settings, but most are rarely used.

Moisture sensor: A dryer is one of the biggest energy hogs in the house, a fact made worse when these appliances run longer than necessary. Dryers with moisture sensors in the drum automatically shut off when the clothing is dry, trimming about 15% in operating costs, according to the Consumer Energy Center. The good news is that this feature is pretty much standard on all modern machines. Make sure to look for it.

Removable dryer rack: Dryer racks protect hats, sneakers, and other delicate items from getting knocked about by suspending them above the drum for tumble-free drying. The feature typically is unavailable on machines under $450. Says Kaminski: “People don’t wind up using them as much as they thought they would.”

Noise dampening: Depending on where the dryer sits in the house, this feature can be quite valuable. For dryers positioned near living areas and bedrooms, the extra money spent for noise reduction is easily justified. Quiet dryers, which start around $600, contain special sound-dampening materials on the top and sides of the appliance.

Steam: Shoppers comfortable spending at least $900 on a clothes dryer can opt for one with steam technology, a feature designed to remove wrinkles and odors. Some steam-equipped dryers require a water hookup, while others rely on a reservoir that the homeowner fills manually. Cost-conscious consumers claim to achieve similar results by adding a damp washcloth to a wrinkled load.

Stainless steel drum: Unlike ceramic-coated steel drums, stainless steel ones stay free of nicks and scratches caused by metal zippers, buttons, and rivets. Additionally, stainless drums will remain rust-free, preventing wet clothes from becoming stained. Clothes dryers with stainless drums start appearing in the $500 range.

Expected maintenance/repairs: Lint trays should be cleaned before every load. Vent hoses and exhaust lines should be cleaned and inspected once a year. The drive belt that turns the drum may wear out and snap, necessitating replacement. The electric heating element can burn out, requiring a $125 replacement part plus labor. Digital control panels, while reasonably reliable, can cost up to $250 plus labor to repair.

Douglas Trattner has covered household appliances and home improvement for the Cleveland Plain Dealer, DIYNetworks, and HGTV.com. During the 10-year stewardship of his 1925 Colonial, he’s upgraded almost every household appliance. After lengthy deliberation, he recently replaced an aging top-load washing machine with an energy-efficient front-load unit.

Reprinted from HouseLogic (www.houselogic.com) with permission of the NATIONAL ASSOCIATION OF REALTORS®
Copyright 2009.  All rights reserved. 

When deciding on a new range, here’s what you’ll need to know about features, style, price, and performance.

By: Douglas Trattner

Most ranges do a fine job of boiling water, baking cookies, and roasting the holiday bird. The major distinguishing factor will be whether the one you buy does so using gas or electricity. In general, a gas range with electronic ignition (instead of a gas-fired pilot light) can cost up to 50% less to operate than an electric model, depending on the price of utilities in your area.
Because there’s very little difference in energy consumption among ranges, these appliances aren’t required to bear EnergyGuide labels, nor are they included in the Energy Star (http://www.energystar.gov/) program. Other than by fuel type, homeowners typically select ranges based on budget, ease of cleaning, appearance, and performance.

Cost range: $350-$2,000 and up

Likely additional costs: Delivery, installation, haul away, gas line hookup, or electrical outlet installation if none exists

Average life span: 11-15 years

Gas or electric: “When a customer comes in for a new range, the first question I always ask is ‘Gas or electric?’” says Lenny Kaminski, sales manager at B & B Appliances, an 85-year-old retailer in Cleveland. Typically, it’s the home rather than the homeowner that will make this decision. Buyers who have a natural gas line in the kitchen will inevitably purchase a gas-powered range, while those without choose electric.

The one major exception is when a kitchen is undergoing a major remodel, allowing a homeowner to switch to gas with relative ease (assuming the house has a main line). Electric ranges typically require a dedicated 220-volt outlet.

Size: The standard width of a residential range is 30 inches. Those boasting side-by-side ovens and high-end “commercial-style” models can extend to 36, 40, and even 48 inches wide. However, smaller 20- and 24-inch models are available for kitchens short on space. The oven compartment on a standard-size range is 5 cubic feet, large enough to cook a 30-pound turkey.

Ease of cleaning: All but the least expensive electric ranges now feature smooth, ceramic glass cooktop designs rather than traditional coil burners, making them easy to clean. The jump from entry-level coil-burner electric ranges to those with smooth tops is roughly $150. Sealed-burner designs are present on almost all gas ranges and are relatively easy to clean.

Self-cleaning ovens are standard, appearing in models starting as low as $350.

Convection: One of the first major upgrades a buyer often makes, says Kaminski, is choosing an electric or gas range with convection heat. With convection, an internal fan circulates the hot air throughout the oven compartment, improving heat distribution and generally reducing cook times. Many home and professional cooks swear by the technology. Customers can count on spending an additional $200 to get the feature.

Burner quantity and type: The standard quantity of burners on a typical range is four, but buyers need not stop there. Stepping up to a mid-range gas or electric stove often comes with an additional fifth burner. Depending on the make and model, that burner could be an ultra-low “melting” burner or a centrally placed oval burner that accommodates griddle pans.

Likewise, a “bridge” burner is a smaller element located between two larger ones that, when on, creates one large heating element ideal for griddles and roasting pans. Five-burner ranges generally start around $800.

Burner performance: “BTUs absolutely affect performance, with some of the higher-powered burners boiling a pot of water in half the time of standard one,” says Kaminski. Both electric and gas burners have gotten more powerful over the years, offering increased performance at a relatively modest extra charge.

While 9,000 BTUs is standard, so-called “power” burners can climb up to 15,000 BTUs. Conversely, ultra-low “simmer” burners prevent stove-top scorching thanks to their scaled-back BTU output. Expect to pay around $200 extra for these well-equipped appliances.

Going pro: Avid home cooks–or those who follow current trends–often prefer the look and feel of a commercial-style range. Like the restaurant appliances they emulate, these residential versions boast ultra-high-powered burners, multiple large-capacity ovens, and convenient grill/griddle inserts.

Homeowners should expect to pay between $4,000 for a 30-inch unit up to $10,000 for a top-of-the-line 48-inch model. Likely additional expenses will include the installation of an equally high-powered exhaust hood and possibly some enhanced structural support.

Warming drawer or extra oven: Many contemporary ranges replace the conventional lower-level storage drawer with either a smaller second oven or a warming drawer. A variable-temperature warming drawer is ideal for keeping prepared food hot or warming chilly dinner plates. Expect models with this feature to start in the $1,000 range.

Second ovens, even the smaller ones that take the place of the storage drawer, can be very useful when cooking multiple items. Though shorter than the main compartment, the additional oven easily accommodates casseroles, cookie sheets, and platters. Configurations are available that position the smaller oven above or below the main compartment. Models start at $1,200.

Additional useful features: Temperature probes that monitor the progress of cooking items ensure the turkey will never again be overcooked and dry. Unfortunately, the technology doesn’t appear on many models under $1,300. Battery-powered countertop probes, in contrast, sell for only $30. Smooth-glide oven racks, porcelain-coated racks and grates, and halogen lighting all make the cooking process less of a chore. The question is whether the additional hundred dollars each is worth it.

Expected maintenance/repairs: Oven bulbs will need to be changed periodically. Coil-style electric burners often fail, but they’re easily replaced for around $30. Glow coils that ignite gas ovens can fail, requiring a $50 part plus labor. More costly is a cracked glass top on a smooth-top electric range, which can cost $250 to replace. Electric control panels, while reasonably reliable, can cost up to $250 plus labor to repair.

Douglas Trattner has covered household appliances and home improvement for the Cleveland Plain Dealer, DIYNetworks, and HGTV.com. During the 10-year stewardship of his 1925 Colonial, he’s upgraded almost every household appliance. After lengthy deliberation, he recently replaced an aging top-load washing machine with an energy-efficient front-load unit.

Reprinted from HouseLogic (www.houselogic.com) with permission of the NATIONAL ASSOCIATION OF REALTORS®
Copyright 2009. All rights reserved.

How long will it be before former home owners who walked away from their mortgages can buy again?

Mortgage lenders are saying that in the future, losing a home because of illness or job loss will be seen differently than choosing to abandon a mortgage obligation for other reasons.

“If you made a strategic decision to default on paying your mortgage, it will work against you,” says Bill Merrell of the National Association of Review Appraisers and Mortgage Underwriters.

It will probably be seven or eight years before walkaways are able to buy another home, says Jay Brinkmann, chief economist for the Mortgage Bankers Association. “Credit scores are only one component of a complete credit decision,” he says. “[In these cases] credit scores are not a good indicator of their willingness to continue to pay their mortgage.”

Source: CNNMoney, Les Christie (05/28/2010)

After a tough 2009, the luxury home market is on the upswing. Sales of homes with asking prices of $2 million to $5 million in the first quarter totaled 2,461, up 32 percent from the previous year.

The increased sales appear to be driven by realistic seller pricing, increased buyer confidence, and improved financing options.

But even though the market appears to be improving, experts still have concerns. They say sales of high-end homes are affected by the movement of the stock market, and “if the markets don’t recover soon, it will scare people” and hurt demand for high-end homes, says Kenneth Rosen, chairman of the Fisher Center for Real Estate and Urban Economics at the University of California, Berkeley.

Source: The Wall Street Journal, Juliet Chung and James R. Hagerty (05/28/2010)

The near-record low mortgage rates seen during the past few weeks may not be around much longer.

Signs of improving economic conditions could lead Federal Reserve Chair Ben Bernanke to raise key interest rates, driving up mortgage rates, says Stephen Stanley, chief economist at Pierpont Securities LLC.

The evidence includes more consumers are paying their bills on time. Past-due accounts at American Express declined 34 percent compared to a year ago, and Target Corp. reported its lowest delinquency rate in two years during the second quarter.

In another sign of economic improvement, fewer banks reported tightening lending standards this month, one reason consumer borrowing rose for the second time in three months.

“If lending standards start to stabilize, that’ll be another reason to remove the emergency measures, including the zero rate,” says Jay Bryson, a senior global economist at Wells Fargo Securities LLC in Charlotte, N.C., who formerly worked at the Fed in Washington.

Source: Bloomberg, Bob Willis and Anthony Feld (05/28/2010)

Banks took more risks than they should have during the housing boom because they relied on faulty risk models and were too eager for profits to adequately evaluate lending decisions, concluded a recent study authored by University of Maryland Professor of Finance Clifford Rossi.

Rossi found that mortgage lenders were overly eager for high profits and ignored warnings from risk managers. Plus, as lending standards declined, the historical data used to predict defaults was based on conditions that no longer existed.

Teresa Bryce, president of Radian Guaranty Inc., a mortgage insurer, says the industry “lost the art of underwriting” during the boom. “It became a checklist mentality,” she says, and adds that underwriters were “not actually looking at those documents … or making sure what’s in those files makes sense.”

Source: The Wall Street Journal, James R. Hagerty and Nick Timiraos (05/26/2010)

I just sold this beautiful Memorial area home representing the Buyer.

Gorgeous,Sunny Renovated* Memorial Home.Great Schools*. Light,Bright Eat-In,Cooks Kitchen w/Granite, Stainless Appliances, Commercial 6 Burner Gas Range, Island, Breakfast Bar, Opens To 2 Family Rooms. Hardwoods, Plantation Shutters,Crown Molding,Sprinkler,Alarm,Mosquito System,Electric Driveway Gate, Large Pool W/ Landscaping*, Lighting,French Drains*. Renovated Master Bath*. Secondary Bath High End Renovation* With Carwash Walk-In Shower, Swivel Mirrors & Custom Cabinets*. * = Per Seller

LIST PRICE: $629,000                                                                                                                    JUST SOLD

807 FROSTWOOD DRIVE