Sunday Feb. 26 2017
THE EASTERN NEW MEXICO NEWS
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Snare tax rebates, credits and rewards for energy-efficient home improvements
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f you’re planning to make some home improvements this year, you’re probably thinking about energy-efficient options, knowing they can save you money in the long run. However, many eco-friendly home improvements that help lower your energy bills can also pay off right
water hot in a tank. To learn more about tankless water heaters and the rebate, visit www.noritz.com. Federal tax credits Although many tax credits for energy-efficient home improvements expired at the end of 2016, some are still available. The federal government offers a tax credit of up to 30 percent for home solar energy systems through Dec. 31, 2019, and there’s no upper limit on the credit, according to EnergyStar.gov. If you’ll be making energy-efficient home improvements, be sure to talk to your professional tax preparer about any credits or deductions that may be available to you from the federal government. State-level programs
away in the form of rebates and tax credits. Whether you’re considering installing an energyefficient tankless water heater, putting solar panels on your house, or adding a skylight, chances are you can find a program that will put cash back in your pocket for improving your home’s energy efficiency. Here is where to look for rebates, tax credits and rewards for your energy-efficient home improvements: Qualifying improvements
In addition to federal programs, a number of states offer their own incentives to encourage homeowners to make energy-efficient improvements. For example, Alabama allows homeowners to deduct 100 percent of the purchase price and installation costs of a wood-burning heating system. In Minnesota, homeowners can borrow up to $20,000 at 4.99 percent interest to make energy-efficient improvements such as water heaters, lighting, furnaces, air conditioners, insulation, windows, tankless water heaters and more. You can find a searchable Database of State Incentives for Renewables & Efficiency at www.dsireusa.org.
When you think of energy efficiency, insulation and appliances probably come to mind. But a number of improvements can help reduce your home’s energy consumption, and many of them qualify for tax credits, rebates and incentives from a variety of sources. The kind of improvements that can make your home more efficient and get you some cash back typically include: · · Solar energy systems (such as solar panels) · Tankless water heaters · Solar-powered appliances · Energy-efficient windows and doors · Skylights and solar-powered blinds · Wood or wood-pellet stoves · Home wind turbines Manufacturer rebates and incentives Makers of energy-efficient products and appliances often offer their own rebates to homeowners for making eco-friendly upgrades. If you’re considering an energyefficient upgrade such as installing new windows, HVAC system or tankless water heater, be sure to ask the retailer or installer about any available manufacturer’s rebates. For example, now through at least Feb. 15, 2017, you can get up to a $650 rebate on select tankless water heaters from Noritz. The average American household spends nearly 18 percent of its energy use on heating water, at a cost of $200-$600 per year, according to the U.S. Energy Information Administration. Tankless water heaters are more energy-efficient because they only heat water when you need it, rather than constantly consuming fuel to keep
Utility company incentives Many utility companies also offer programs designed to help homeowners reduce energy consumption and save money. Typical programs include free LED or CFL bulbs to replace incandescent bulbs in a home, and rebates or discounts for installing energy-efficient HVAC equipment or programmable thermostats. The best way to find out what programs your local utility offers is to check out their website or give them a call. You can also find state-specific lists of programs at www.dsireusa.org. Energy-efficient home improvements pay off over the long-term by reducing your home’s energy consumption and utility bills. With a little bit of planning and legwork, you can also find rebates, tax credits and incentive programs that will also repay your eco-friendly investment right away. To learn more, visit Noritz.com, www.direusa. org, energy.gov, energystar.gov and irs.gov.
Page 2B • Sunday, Feb. 26, 2017
Real Estate
THE EASTERN NEW MEXICO NEWS
Newlyweds: Money-saving tips for your first move together
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ith the average wedding costing upwards of $30,000, starting your new life together takes a lot of careful budgeting. After you’ve finished paying for the flowers, reception hall, caterer, photographer and everything else related to your big day, you may not have much money left over when it comes time to move into a new home together. However, managing your move can be your first big DIY home project together, and it’s one that’s very doable on a budget.
Renting a truck and doing your own packing and driving are great ways to save money on your move. If you’re moving from a small apartment or condo into a larger home, you probably have less stuff, and a smaller vehicle – such as a 12- or 16-foot Penske rental truck should be big enough. Generally, moving experts recommend you plan for 150 cubic feet of space for every furnished room you’ll be moving. Be sure to reserve your truck at least two weeks in advance, and ask about discounts; Penske Truck Rental offers discounts for AAA members and military personnel.
Whether you’re moving in together for the first time or moving up from a smaller apartment to the home Pack wisely where you’ll start your married life, you can save money You’ll need multiple sizes of sturdy boxes to pack and make your move go smoothly with a few tips: and protect your belongings for the move. Your local truck rental store will have all the packing supplies you need. Start early and pack over time so the job doesn’t feel overwhelming. Label each box with the contents and the room where it will go in your new house, tape it securely and it’s all ready to go onto the truck on moving day. Get help
Streamline If you were both living on your own before marriage, you probably have duplicate items you won’t need, such as two sets of pots and pans, dishes, glassware and furniture. You also likely received some wedding gifts that can replace old stuff. Don’t take things you don’t need with you to your new home. Instead, streamline by selling or donating excess stuff. Selling unneeded items can put some money in your pocket when you need it most. Or, donating goods can help you get a tax credit for charitable contributions when you file your taxes next year.
Moving day is a great excuse for a party! Ask friends over to help, and when the job is done treat everyone to take-out in your new home. For particularly heavy or fragile items, like an antique armoire or big sectional, it may make sense to hire professionals to help you pack and load those items. Loading up Loading the truck well maximizes the use of the space and helps protect your belongings while they’re in transit. Load the heaviest boxes and items first, placing them on the bottom of the truck. Next, load lighter items and boxes on top. Penske’s Truck Wizard application can help you plan how best to pack your truck. Drive safely
Your move may be the first time you’ve driven a vehicle larger than an SUV. Safely driving a moving truck Hold on to gift cards takes some caution, such as using your mirrors to help If you received gift cards for your wedding, you navigate turns, avoiding abrupt stops or lane changes, might be tempted to spend them right away. However, and setting the emergency brake every time you park. For every item you buy before the move is one more thing more tips on driving a moving truck, visit pensketruckyou’ll have to pack and haul. Put off using gift cards un- rental.com. til after the move, when you can use them to help deco Moving into your first new home together can be an rate or furnish your new home. exciting experience. With some planning and care, you Line up your moving truck can accomplish your move smoothly and on budget.
THE EASTERN NEW MEXICO NEWS
Real Estate
Sunday, Feb. 26, 2017 • Page 3B
Flood insurance: Does your excuse hold water?
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e know the old saying: when it rains, it pours... and when it pours, it floods. With winter snow storms coming to an end, the threat of flooding increases as the snow begins to melt and the rivers and creeks begin to swell. It’s easy to forget about how powerfully destructive water can be. In fact, nine out of 10 natural disasters include flood, making it the number one disaster in the United States according to the National Flood Insurance Program (NFIP). However, only 15 percent of homeowners have flood insurance. From 2006 to 2015, total flood claims cost more than $1.9 billion per year and the average claim was more than $46,000 during that time. “Even just a few inches of water can cause thousands of dollars in property damage,” says Corise Morrison, executive director of underwriting at USAA. “While it’s possible to mitigate flood damage, complete prevention is nearly impossible. If you don’t take the proper precautions, it can be devastating to your family finances.”
risk areas. These are areas in which lenders don’t require the purchase of flood insurance. However, “less likely” doesn’t equal “no risk.” Complete this quick self-survey: “Does it rain where I am?” If the answer is yes, consider flood insurance because it can flood anywhere it rains. “Flood insurance won’t provide me with the coverage I need anyway.” It is true that the NFIP limits coverage of a single residence to $250,000 for the structure and another $100,000 for contents to the home, but they aren’t the only source for coverage. Excess flood coverage can also be purchased above the $250,000 limit. “I’ll just wait until it rains.” Sorry to break this to you, but most insurers require a 30-day waiting period before a policy is effective. Unless your own forecasts rival the best science and technology have to offer, it might be wise to stick to the mantra, “better safe than sorry.”
For most homeowners, that means looking into flood insurThe consequences for being ill prepared for a flood can be ance. But does it make sense for everyone? As an insurance profes- sional, Morrison has heard all the explanations. Here are some of long lasting. Research and carefully weigh the risk to you and your property. Chances are that you’ll find that it might be more reasonthe most common misconceptions about flood insurance: able than you thought. Visit USAA.com/flood for more tips and “Flood is covered by my homeowners insurance policy.” information on flood insurance and what to do before, during and after flooding occurs. You can also visit FEMA’s Flood Map Ser Typically, flooding is not covered by a homeowners insurvice Center for more information or to determine your flood risk. ance policy. Therefore, homeowners must purchase a separate policy through the National Flood Insurance Program (NFIP) from their insurer. If the homeowner does have flood insurance, it’s important to regularly reevaluate it to ensure it provides adequate coverage. “Flood insurance is too expensive.” To emphasize an earlier point, the average cost of a flood claim hovered around $46,000 from 2011 to 2015. The average annual premium for flood insurance in the U.S. is $650, according to NFIP. Do the math. “I don’t live in a flood plain so I don’t need flood insurance.” The Federal Emergency Management Agency found that as many as 20 percent of flood claims come from moderate-to-low
Page 4B • Sunday, Feb. 26, 2017
Real Estate
THE EASTERN NEW MEXICO NEWS
What you should know about rising interest rates
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omeowners planning to refinance and buyers
preciation. In fact, in most markets, housing prices have
searching for a home may have an idea of what’s
increased past highs previously set before the financial
in store for them with regards to interest rates,
crisis in 2007/2008. For example, in citing this recovery,
but they never really know until they lock in a rate. This is
the Federal Housing Finance Agency recently increased the
in part because rates can change direction fast, and when
maximum loan amount for mortgages that meet Fannie Mae
they rise-as they have been recently-it can cost borrowers a
and Freddie Mac guidelines for the first time in more than a
great deal of money and time.
decade.
The new conforming loan limits increased only
slightly, to $424,100 in most parts of the country. This will enable home buyers in higher-cost areas to access larger home loan amounts and more affordable loan products, in line with local housing prices. The home buying season may start early this year The effect of rising interest rates on your home purchase
Today, the median existing home price in the United
States is around $235,000, and the average mortgage interest rate is near 4 percent. If you were to buy a home at that price, an interest rate increase of half a percent would cost you an additional $70 per month on your loan payment. And that assumes you’ll put the standard 20 percent down in advance. A more dramatic rate increase-say from
Spring/summer is traditionally the busiest home buy-
ing time of the year as many sellers wait to list their homes after the cold winter weather is over and to coincide with the summer school break. However, with both home prices and interest rates on the rise, more buyers are expected to enter the home buying market earlier this year, making for a more competitive home buying season. Potential buyers will need to be aggressive to find the home they want at a rate they can afford.
4 percent to 6 percent, even over time, would increase your
Starting your loan search today
monthly payment by almost $300.
Home price gains
your dreams yet, there are tools available to guard against
For homebuyers, it’s not just rising interest rates
that can increase your payment, but so can home price ap-
If you’re in the market but haven’t found the home of
increasing mortgage rates. Lenders like loanDepot help customers save by giving them the opportunity to lock a quoted rate and hold (lock in) that rate for 45 to 60 days, protecting them from potential fluctuations in the market. And with rates rising, now is a great time to lock your loan at a more favorable interest rate.
If you do choose to lock your loan, you’ll need to
provide an appraisal deposit which can range from $450 to $750. This is not a fee, and is returned when working with loanDepot if there is no appraisal performed on a home.
Navigating your options can seem confusing at first,
but a loanDepot licensed lending officer can help. You can learn more by visiting loandepot.com or by calling (888) 983-3240 today for more information.
THE EASTERN NEW MEXICO NEWS
Real Estate
Sunday, Feb. 26, 2017 • Page 5B
How trending home colors achieve their ‘hot’ status each year
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ou see it every year – a “hot” new color begins appearing on phone cases, walls, ceilings, furnishings and accessories. Soon, virtually everyone who’s doing any kind of renovation or design work is incorporating that color into their project. Have you ever wondered how home color trends happen? “Our team of global color experts assess societal and cultural influences from around the world to forecast what colors will be popular in home decor, consumer goods, automotive and even on airplanes for the upcoming year,” says Dee Schlotter, senior color marketing manager for PPG in North America. “We also look at what major retailers are doing in home décor, and what’s happening in society, and people’s state of emotion because of these events. All this information helps us predict what colors will resonate with people in the coming year.” For example, immediately following 9/11, pinks and browns were popular because people craved comfort and security. For 2017, a blending of various cultural norms influenced the choice of purples as color of the year, Schlotter says. “Culturally, we’re seeing a shift toward blending of gender, relationships, careers, workplaces and living spaces,” she says. “For example, male makeup models are now blending traditional views of masculine and feminine. Hotels, restaurants and homes are blending indoor and outdoor spaces, and modern offices are finding middle ground between work and play. Purple is such a blended color that it really speaks to what’s going on in the world, especially for our choices of 2017 color of the year, which combines gray, blue and purple all in one tone.” Shades of purple are the colors of the year for multiple paint brands including PPG Paints, Glidden and Olympic paints. Glidden’s Byzantine Blue and PPG’s Violet Verbena blend blue and gray to create a hue that appears more gray when paired with dark neutrals and bluish-purple when paired with whites, similar to that of a chameleon. Cloudberry from Olympic is a calm, soft violet that also straddles the blurred line between purple and gray. “Blended purples evoke a lush, pampering yet calm effect that’s a comforting foil to the harshness of the world right now,” Schlotter says. “These trending colors are sweet without being feminine, and gray without being somber.” The colors also mesh with the more bohemian lifestyles people seem to be pursuing, she notes. A trend toward spiritual exploration is driving interest in meditation and yoga, which
blend elements of mental and physical exercise. “This fits perfectly with the purple trend because this hue is thought to represent the subconscious, and can be a meditative color in the right tone,” she says. While Schlotter says homeowners have historically been shy about using purple, this year’s hues will work well in a variety of settings. The muted nature of the colors makes them gender-neutral yet impactful, so they’re great statement colors when used in a dining room, on the front door or even as an accent wall in a child’s room. What’s more, the color pairs well with trending home materials, such as gray flooring, black tiles and gold décor accents. The unique blended qualities of the colors mean these purples can adapt to the surrounding environments and blend effortlessly. “The great thing about Violet Verbena, Cloudberry and Byzantine Blue is that they all have hints of other colors and neutrals in them,” Schlotter says. “Gray is popular now more than ever, but many consumers don’t want a monochromatic look. These beautiful purple hues pull in hints of blue and gray to form chameleon-like hues that adjust based on their surroundings. They’re not your typical purple, but rather can be looked at – and used – like a new neutral.”
Page 6B • Sunday, Feb. 26, 2017
Real Estate
THE EASTERN NEW MEXICO NEWS