Pound Ridge Realtor Robert Paul | Low Appraisal Killing a Deal? Here’s What to Do
Leave a reply
Daily Archives: September 8, 2011
Bedford Corners Realtor Robert Paul | Fed Eyes New Plan to Boost Growth
Bedford Realtor Robert Paul | Is it Time to Buy a Generator? – Bedford-Katonah, NY Patch
Joseph and Teresa Genovesi have lived in Bedford for 79 years, the last 47 years at their house in Katonah.
“I’ve never seen anything like this storm,” Joe Genovesi said, of Irene. He’s used a portable generator for the past ten years—one that he bought after a bad winter storm and is powered by gasoline. “It makes us feel very comfortable to have the generator when we really need it, like we did last Sunday,” he said. “Though we feel very fortunate compared to some in our region and in places like New Jersey who are seeing damage that is mind-boggling.”
After enduring a long, aggravating stretch without electric power, many area residents are looking to prevent similar frustrations in the future by investing in a generator.
There has been high demand this week at large distributors, like Home Depot in Brewster— who sold over 200 portable generators during the weekend of the storm, according to a sales associate. Neighborhood shops like Paul’s Power Products in Bedford Hills and Arroway Tractor in Katonah have received an enormous amount of calls for repairs of overused and damaged generators.
“A generator at a private home used to be only for the very wealthy,” said Tim Bland, of Bland Electric of Bedford Hills who has been in the business for 33 years. “Then we saw a surge in demand for generators for the Y2K event, when people were willing to spend large amounts to prepare for any widespread power loss.”
As prices have come down for generators and more families are obtaining them, Bland advised buyers consult a licensed electrician (he no longer installs them) before purchasing one. He said electrician will direct customers to generator that fits their needs—be it for just the essentials like well water, heating and refrigeration or for setting up a larger back-up system— and will install them according to safety code requirements.
Bill Richards, a sales associate at Home Depot, cautioned first-time generator buyers to educate themselves.
“These are serious machines that can do harm to your home and your neighbors if they are not used properly,” he said. “People should know what they are doing when operating and maintaining them.”
Prices range from about $700 to $1000, depending on the generator’s size.
More permanent units, called “home standby generators” are connected to a home’s circuitry and are housed outside the home in a weather-protective enclosure. Companies like Northeast Generator, based in Bridgeport, CT, will send an engineer for a “load evaluation” and then recommend an appropriate unit.
“These types of generators are good for someone who does not want to deal with the machine themselves,” says service manager Adam Pryor. “They kick in automatically when the power goes off; they exercise (start-up) once a week and are serviced by our company.”
Prices are steeper for this option, and range from approximately $5,000-$15,000. But for some, the benefits outweigh the costs.
“The other night, a guy just called me because he was driving home to another night in his power-less house and saw our truck on the highway,” said Pryor. “He just had to call.”
Chappaqua Realtor Robert Paul | Come to the Markets! Support Your Local Farmers!!
Reverse Mortgages: Do the Benefits Outweigh the Risks?
The reverse mortgage was invented decades ago to help seniors facing economic hardship access the equity in their homes. Between 1990 and 2010, more than 660,000 reverse mortgages were issued, according to the AARP. Today, the products are aggressively marketed through ads featuring Boomer-friendly spokespeople such as Henry Winkler (the Fonz from Happy Days). But these products are complicated, expensive and ripe for abuse, which lead a reader named Fred to ask:
“What is your opinion about reverse mortgages? So many financial planners are pushing this sort of thing, but I heard that fees are steep.” Home Equity Conversion Mortgage (HECMs) are the most popular reverse mortgage available. They are federally insured and offer certain borrower protections. Seniors who either own their homes outright or have low mortgage balances can take out reverse mortgages and convert their equity into cash — either as a lump sum, monthly payment or line of credit, or some combination of the three. There are no income or credit requirements, and the loan has no monthly payment. Instead, the lender pays the homeowner, and the reverse mortgage balance rises as a result, accruing interest and fees. Lenders get repaid when the owner either moves or dies, and the home is sold. HECMs are insured by the Federal Housing Administration, so if for the sale price of the home falls short of the loan amount, FHA pays the lender the difference. “Reverse mortgages are full of pitfalls and they are very expensive — but they are very valuable to the people for whom they work,” says Margot Saunders, at counsel with the NCLC. “If you are sitting on a mortgage and you can afford to make payments on it, and have home equity and other assets, this is probably not a good idea. But if you are 85 years old and have $250 a month in income and a $500,000 house, it’s a great idea no matter how much it costs, because the lender will give you money you don’t otherwise have.” In short, these pricey loans can be a lifeline for low-income seniors. What they aren’t is a cost-effective source of cash to buy sports cars or dream vacations, although the industry has aggressively marketed them that way. Lenders have also falsely pitched reverse mortgages as some kind of government benefit program, or part of the economic stimulus plan — and been sued by states for doing so. The amount someone can borrow depends on their age and the amount of equity in the home, but the maximum is $625,500. (The loan limit was raised in 2009 as part of the federal stimulus law and is set to expire Dec. 31, after which it reverts to $417,000.)The Risky and Expensive Sides of the Lifeline Reverse mortgages also come with hefty fees, which can run as high as 5% of your home’s value by some estimates. The FHA charges everyone who gets one a mortgage insurance premium fee of either 0.01% or 2% up front, as well as ongoing annual fees. The HECM Saver loan, created in October 2010, has lower fees, but typically higher interest rates and more restrictions on borrowing. Consumers also have to pay a fee up front for third-party counseling to make sure they have a clear understanding of their options.
Full Story on CNN Money
Reverse Mortgage: Is it a Good Idea?