The Bains

Exterior replacement projects such as doors & windows continue to recoup the most dollars at resale
& it helps curb appeal. Also least expensive to complete. Steel entry door replacements recoup
nearly 129% of their costs at resale, returning the most on investment. Other high-ranking cost-vs.-
value projects were siding replacements, attic bedrooms & deck additions. With the recession most
homeowners are tackling small projects themselves, rather than hiring contractors. Projects to least
recoup the cost are home-office remodels, sunrooms, upscale master suites, upscal garage additions
& upscale bathroom additions. All this according to REMODELING magazine. Data from 30 U. S. cities.

(1) decreasing homes prices, (2) higher volume of foreclosed homes available, (3) tougher mortgage
lending standards and (4) reluctant buyers are combining to make Texas homes more affordable than
ANYWHERE in the U.S. This according to Dr. Jim Gaines, economist with the Real Estate Center at
Texas A&M. According to the Texas Housing Affordability Index (THAI) homes have remained affordable everywhere in Texas since the beginning of the last housing cycle (from 2003-2009).
Tyler is right in there with a decided upswing in homes under $145,000.

The folks at FICO (who keep up with your credit scores) have revealed the actual penalities. If your
FICO score if 680, a 30-day delinquency drops it by 60 – 80 points; maxing out a credit card costs
10 – 30 points; a foreclosure costs 85 – 105; and declaring bankruptcy shrinks it by 130 – 150. If
these same missteps are made by the owner of a 780 FICO score with few signs of risky credit behavior in the past, the number of points lost could be about 50% higher in each case. It is suggested you check you FICO scores at the 3 credit recording sites. Go to www.thebains.com
and click on the 4th link down (about mid screen) to ask for the 3 reports. INTERESTING STUFF!

#1 consideration is still schools, along with walkability, compatible age, background & education levels, as well as sex offenders, which can be researched on the Internet. A few other “musts”:
(1) CONSTRUCTION – zoning for vacant land, “planned” roads, city planning & more, (2) SOCIAL
ACTIVITY – too little or too many kids, teens – do folks chat, (3) NIGHT VISITS – frequent parties,
barking dogs, informal drag races, band “rehearsals”, outside lights, (4) NOISES, SMELLS – train
whistles, incessant highway or factory noises, downwind from a land fill, (5) MORE ONLINE RESEARCH
which is readily available. Just walk a neighborhood on the week-end – too many cars could indicate
a declining neighborhood.

Average interest rates on a 30 year fixed rate loan fell this week to 4.97% from 5.05% a week earlier,
according to Freddie Mac. Homebuyers no longer are feeling rushed to apply for the homebuyer tax
credit, which ws extended to April 30, has caused the index to decline 2 of the last 3 months.
The National Association of Realtors index that tracks residential sales agreements fell 7.6% to 90.4% in January. Economists has expected a rise to 97.6%, were disappointed in this reading, the lowest
since Aril 2009. Sales fell in the West by 13% from December to January, 9% in the Northeast & Midwest & 2% in the South. A reading of 100 is dqual to the average level of sales activity in 2001,
when the index was started.

2009 concluded with 2% of TX home loans in foreclosure, compared with 4.58% nationwide. 10.3% of TX home loans were delinquent – up 0.5% from the 3rd quarter – but the number of loans 30-60 days fell 4.43%, according to the Mortgage Bankers Association. A loan is considered delinquent if
one or more PAYMENTS ARE PAST DUE. Nationally, the delinquency rate declined to 9.47% and the rate for loans 30-60 days delinquent fell to 3.36%. This shows a significantly improved housing market, even for 90 days.