Jul
9
Lowes vs Home Depot
Filed Under denver, personal finance | 4 Comments
Growing up in suburban NYC, there was one choice when it came to hardware stores - Pergament. When I went to college in upstate NY, there was one choice as well - Chase Pitkin. When I first moved to Denver, there were several choices including Builders Squares and Hugh M Woods.
Today, these stores don’t exist. They’ve been replaced by two home improvement mega centers: Lowes and Home Depot. These home improvement centers are growing at a rapid pace and leaving a closed hardware stores in their wake.
A few years ago we planned on remodeling our bath room but after getting two quotes from contractors we decided that our money was best spent on a Mexican vacation. This year we revisited the idea of remodeling our bath room but we decided to set a budget and keep things within reason since we’re planning to go to Mexico again next year. In order to keep things within reason, it means doing it yourself and going to Lowes or Home Depot.
To make life easier my wife and I ventured to Arapahoe and I-25 in the Tech Center where Home Depot and Lowes are about a block apart. Plus, if we didn’t like their selection, the Great Indoors, was a stone throw away on I-25 and County Line. We went shopping. I hate shopping but you don’t have to twist my arm to go to a home improvement center. We looked at flooring, vanities, sinks, counter tops, faucets, and just about everything in between.
This shopping adventure brought up a great question: How do you pick between Lowes and Home Depot? You can go with Nick Bakay’s “Tale of the Tape” method:
Number of Locations: Way too many (Home Depot) vs Not enough (Lowes) advantage Home Depot
Location of restrooms: At the Front (Lowes) vs At the Rear (Home Depot) advantage Lowes
Parking: Even on a busy day it’s not bad (Lowes) vs No matter what time you go, it’s just plain bananas (Home Depot) advantage Lowes
Checkout: Self Checkout (Home Depot) vs No Self-Checkout (Lowes) advantage Home Depot
NASCAR driver: Jimmie Johnson (Lowes) vs Tony Stewart (Home Depot) push
So far we’re even 2-2, so here’s the tie breaker:
Closing time: 10 PM (Lowes) vs 9 PM (Home Depot) advantage Lowes
So there you have it, Lowes wins 3-2!
Update: We ended up getting the vanity, sink, flooring and counter top at Home Depot. My wife simply didn’t care for my affinity to Lowes.
Jan
1
Tips for keeping your heating bill down!
Filed Under mortgage | Leave a Comment
One of the best things to do to keep your heating bill down, is to replace any old windows. This can be costly though, and you may want to talk to a mortgage broker about using some of your homes equity to pay for the replacement windows. If the windows do not need to be replaced then you should consider some sort of weather stripping. It would be in your best interest to use weather stripping on all windows and doors, to prevent heat loss.
You may also want to increase the thickness in your attic insulation. Check doors for proper seal on the weather stripping and replace where needed. Any direct cracks or wholes to the outside will allow your heat to be depleted rapidly.
Another good tip to keep your heating bill down is to install an electronic thermostat. With the electronic thermostat it is easier to see what the exact temperature is set at. So when you leave the house you can turn down the heat by 10 degrees, and then turn it back up when you come home. Knowing how to use your thermostat efficiently can help you cut down on your heat bill.
When you go on vacation turn the thermostat off.
A great and inexpensive way to control your heating bill is with a programmable thermostat. Good ones are available from any home improvement store and are under $50. Most homeowners are able to install them on their own. This type of thermostat will allow you to only heat your home at the times that you need it. You set the programs to lower the heat at the times when you are not home or bundled up sleeping in bed. The programs can always be overridden to accommodate any changes in you schedule.
Not only is replacing those old windows a great investment for your health it actually can improve value on your home. Dual Pane windows is actually one of the Top 10 best Return on Investment for a Homeowner to add to the structure of the home.
Using the equity in your home is a quick and cost effective way to upgrade those windows. You will be able to write the interest off on your taxes, increase the value of your home, and keep that extra cash in your bank account. Talk to your mortgage broker before using other forms of credit to replace those windows, it can save you thousands of dollars in interest.
With the rising cost of heating oil and gas, it is increasingly important to think about improving the thermal efficiency of your home. Refinancing your mortgage or obtaining a secured line of credit from us to make such home improvements as window and door upgrades, roofing upgrades, or upgrading your heating system can be an excellent alternative to getting deep into credit card debt and paying double digit interest rates on your improvements. Poorly performing financing can negate any of the cost savings associated with the omen improvements, and eat into long term ROI (return on investment).
Cover the air conditioning unit that is outside your home. There are differing opinions on if this actually helps, but basically it is connected to your duct work and it does allow air flow from outside. So spend the money on a cover for it, or go the cheep route and use a plastic tarp and some duct tape.
Additional insulation in your attic can help. This can be an easy “do it your self” job if you get the proper tools and use the recommended safety equipment.
Always have your Boiler / Burner checked by a Professional. Also have them clean it at least twice a year. A small buildup of soot or dirt can cause at least a 10 - 15% decrease in efficiency, resulting in higher fuel bills.
When was the last time you checked your filter? All most all heating systems have filters that need to be changed on a regular basis. If your filter has not been changed recently it could be causing poor air flow through your duct work, and decreasing the efficiency of your heater.
Adding a 3M window film over older windows will dramatically help your heating bill by helping to block heat loss through old glass. You can also keep your thermostat set to 68 degrees, The 2 degree lower temperature can actually save you money on your heating bill. Also check the weather seal at the bottom of all exit doors. If the seal is bad then cold easily enters your home.
Shut off radiator valves in rooms that your family members do not or seldom use, but make sure those rooms do not have water pipes running behind the walls, as frozen pipes can explode and create costly problems. Heating a room which no one uses is wasteful. Also, close the doors of all the rooms. It is more efficient to heat an enclosed space than a large area.
If you live in an older home, or have unusually high heating bills, you can call in an Energy Expert. They will audit your heating system and take infrared photos of your home. These photos are the most accurate way to identify where your home is losing heat.
Jan
1
125% Financing
Filed Under mortgage | Leave a Comment
A 125% financing allows you to purchase a home with no money down, and allows you to receive cash, up to 25% over the purchase price of the home. The extra cash received at closing can be used for home repairs, debt consolidation, or anything else that you may wish.
These are a good idea if the 25% overage is going to be used to increase the value in your home!
You may not be able to deduct the interest paid on the portion of your loan which is greater than the value of your home. Consult your tax specialist for more information.
It is more common to have a second mortgage or Home Equity Line of Credit (HELOC) that is equal to 125% of your home value.
If you are in a hot market were your home is appreciating at a rapid pace then this loan would not put you in as much risk than if you were in an area or economy where the appreciation was moving slowly.
You can expect to receive a higher interest rate for these loans, because of the high risk to the lender.
125% LTV loans are only for borrowers who believe that their home will be worth at least 25% more when it comes time to sell it, unless they have other means to cover the difference.
When you’re rehabbing or remodeling your existing home, the 125% loan makes sense because you’re tapping the future equity of your home.
Not many investors offer this program anymore. It was a popular loan in the late 90’s until about 3 years ago. However, it is still available with select lenders. You need to have excellent credit to qualify for this program since the risk to the lender is high.