Home building costs can often be a challenge to control when you've got so many variables in the building or remodeling project. You can avoid overages or, at least, keep them at a minimum if you are armed with some valuable advice.

When planning your build, pad your budget with a 15 percent Contingency Fund. This fund will enable you to pay for overages you have no control over, like unknowns behind walls and ceilings and problems found once excavation commences.

You may not be able to avoid all of them, but you can certainly keep overages under a certain amount of control if you consider the following tips and tricks.

Home Size, Style and Shape -

If you are building your dream home, these are three of the most significant factors that contribute to your bottom line - size, style and shape.

* As a rule, size your home in increments of two feet in order to reduce wasted material. In addition, industry experts advise that your home be built no deeper than 32 feet in order to eliminate the need for custom-made trusses. This will also reduce your expenses.

* Typically, the cost to build a multi-story home is less than building a ranch home with equivalent square footage. Multi-level homes have smaller roofs and foundations, and plumbing and ventilation are built more compact. Roofs and foundations can be quite expensive when building a ranch with equal square footage.

* The cost and need for labor and materials will increase the more corners and angles you build into the home, so you'll want to consider the shape when building your initial plan. A square or rectangular home costs less to build than homes with others shapes - e.g. L-shaped, round, octagonal, etc.

Before You Begin - Plan

* Plan your buildings costs. Take time to put your plan on paper.
* Itemize every activity you think will be involved in the project and every product you think you'll have to purchase to complete it.
* Visit home improvement stores and obtain pricing for all items you believe you'll need.
* Add all your projected expenses up and include the total in your budget.

Before You Sign - Specify

* Make sure you have an architectural plan or very specific drawing and measurements of your new build to eliminate as much gray area as possible.
* If you want specific products to be used in the build, state your requirements to the contractor and make sure that they are included in the contract for bid before signing.
* If you expect granite countertops, but only state high-end countertops, you can't expect your contractor to accommodate your request. You must be specific.
* Make sure language is included to reflect that all building permits will be obtained by your contractor.
* Make sure language is included in the contract that requires the contractor to be responsible for all costs associated with removal of demolition performed in the project.

Before Work Begins -

* If the contractor you use is reputable, he should obtain the appropriate permits with local authorities.
* Don't let the project proceed until you know that all permits have been obtained and are posted where required.

Contractor Change Orders - Beware

* This is the primary reason that projects experience overruns.
* A change order typically increases the cost of your build. If you agree to the change order and the associated expense, you are responsible to pay for it.
* If the change order is an expense incurred due to the contractor creating it, then you should not agree nor should you be held responsible for the cost - i.e., contractor accidentally tears down a wall not in the original bid or causes damage to your property while working the project.
* Be aware of your contract and the condition of your project along the way, so that you will immediately notice issues that come up for which the contractor should be responsible.
* Keep in mind that some change orders may require local officials to revisit the project to approve modifications.

Most Common Milestones for Overruns

Historically, there are two most common milestones when your building project will experience an overrun if building a new home or adding on a new room to your existing home.

Beginning of Project -

* When excavating and installing a well, if necessary, overruns are often experienced due to the terrain.
* If your contractor hits unusually rocky ground, it will take longer for him to excavate and will cost you more out-of-pocket.
* If drilling a well, it is not always known how deep it will be necessary to dig before finding water.

End of Project -

* Wrapping up the final touches to your countertops, cabinets, lighting, plumbing, flooring, electrical and other aspects to the project.
* Again, take time to shop around for all these items, price them, include them in the cost for your project, and deviate as little as possible.
* If you have excess from your Contingency Fund, you can always tap into it for extras at the end.

It's almost impossible to avert all overages in a building project; however, if you plan up front and keep your eyes open along the way, you could reduce and eliminate the most costly ones.

Ki lives and works in Austin Texas and works in Austin Texas real estate as a realtor and investor. He has a website to help buyers seamlessly perform an Austin home search online. He also writes a monthly blog covering Austin real estate with statistics and market updates.

No matter what profession you are in, you will be impacted by real estate in some form or another. Whether you own, rent or sub-let, your life is impacted by real estate and the professionals or individuals that sell, manage or own it.

With that in mind, it would make sense that you just might be interested in people who have made it big in real estate. There are a select few in the entire world who have made their tremendous mark on the real estate landscape. Although, there were many struggles along the way, they arrived at that coveted spot of being a famous real estate tycoon.

Sarah Beeny is a developer and a host of Property Ladder, a British television program in the U.K. Beeny is a die-hard optimist and proponent for incorporating energy efficiency into building or remodeling.

Tim Blixseth is an American real estate mogul and billionaire businessman. He made a promise early on in his investment life to only collect assets, not liabilities, for the remainder of his life. He says he's stuck to that promise.

Donald Bren, according to Forbes.com, is the wealthiest real estate tycoon on the planet with a $12 billion net worth. He currently owns hundreds of office buildings, along with 90 apartment complexes.

Conrad Hilton is the founder of Hilton Hotels. Hilton was known as a tremendous philanthropist who believed charity was a basic requirement for humanity.

Stanley Ho is one of the richest people in Asia. He's a Macau and Hong Kong billionaire and casino mogul.

Lee Shau Kee is recently most famous for losing around $8 billion in net worth just in the past two years. Even with the huge losses, Kee continues to be noted as a real estate magnate as owner for Henderson Land Development. China's greater region still considers Kee as one of the area's richest people.

Ray Kroc is a entrepreneur who founded the McDonald's Corporation franchise. Kroc purchased all rights to the McDonald's name from the founding brothers Richard and Maurice McDonald. He took the franchise internationally to Japan and Germany in 1971.

Akira Mori is a famous Japanese real estate tycoon and billionaire. He's one of the richest men in the world. President and CEO of Mori Trust, his family's company owns real estate and hotels in Tokyo and all over Japan.

Minoru Mori is also a famous Japanese tycoon and billionaire. He and his brother Akira are sons to Taikichiro Mori.

Donald Trump is a famous television celebrity and billionaire real estate developer. Although his investments fluctuate with the waves of the sea, he always seems to come out on top.

Steve Wynn is a well-known Las Vegas casino and resort developer who developed some of the most opulent casinos and resorts in the City of Las Vegas.

Sam Zell's net worth exceeds $6 billion. He is ranked 68th on Forbes' list of richest Americans. He co-founded Equity Group Investments LLC that launched Equity Residential and Equity Office Properties.

Ki worked on 6th street in college. Today he has a business focused on Austin Texas real estate in the older neighborhoods of central Austin.. He also has a website, which encourages buyers to search the Austin MLS. Potential buyers can keep up with the market from afar by following his blog filled with statistics on Austin real estate.

Mortgage rates remained steady this week. The 30 year again was at 5.04 which is a low for the summer. The other mortgage products remained relatively stable this week except for the 1 year arm which fell from 4.58 to 4.52. Below are rates for the last few weeks. As we can see overall for the last month rates have been steadily falling. But overall the movement has been very small with 30 year rates only dropping 1/10 of a point in the last month.

Sep 24, 2009
30-yr 5.04 15-yr 4.46 5-yr ARM 4.51 1-yr ARM 4.52

Sep 17, 2009
30-yr 5.04 15-yr 4.47 5-yr ARM 4.51 1-yr ARM 4.58

Sep 10, 2009
30-yr 5.07 15-yr 4.50 5-yr ARM 4.51 1-yr ARM 4.64

Sep 03, 2009
30-yr 5.08 15-yr 4.54 5-yr ARM 4.59 1-yr ARM 4.62

Aug 27, 2009
30-yr 5.14 15-yr 4.58 5-yr ARM 4.67 1-yr ARM 4.69

Feb 19, 2009
30-yr 5.04 15-yr 4.68 5-yr ARM 5.04 1-yr ARM 4.80

In addition to rates we like to look at mortgage payments to provide some perspective. We determined mortgage payments for a 200k loan based on today's rates and rates from September 10th and February 19th.

Sep 24
30-yr $1078.53
15-yr $1525.9
5-yr ARM $1014.55
1-yr ARM $1015.74

Sep 10
30-yr $1082.21
15-yr $1529.98
5-yr ARM $1014.55
1-yr ARM $1030.07

Feb 19
30-yr $1078.53
15-yr $1548.44
5-yr ARM $1078.53
1-yr ARM $1049.33

This kind of shows the same thing in that there has not been a lot of movement in mortgage rates. A payment two weeks ago would be $3.68 more a month (or 0.3% percent more).

Its also interesting that rates are exactly where they were six months ago. Of course six months ago mortgage rates were more newsworthy because at the time 5.04 (for a 30 year mortgage) was an all time low. So although 5.04 is no longer an all time low (rates dropped below 5 in April) and we are not seeing as many stories in the news mortgage rates are still very, very low by historical standards.

The two questions of course are why mortgage rates are not moving, and how long they will stay this low. The expectation is that eventually mortgage rates are going to move up. Some have suggested that mortgage rates could move above 10 percent in a year or two. The idea is that once the economy recovers mortgage rates (along with inflation) will start marching upwards due to the massive government spending during the recession. It seems that although the economy is recovering its doing so rather slowly and this is helping keep mortgage rates down for now. The other question is how long mortgage rates will stay down. My expectation is rates will probably not see that much movement until we see movement in the economy. Once the economy starts moving we should see rates start to move upward.


Ki bikes Shoal Creek when he is not working. He has focused on Austin real estate since graduating. People interested in the Austin market can perform a graphical Austin home search on his site. His site also has a graph of historical historical mortgage rates along with a mortgage rates widget.

Foreclosure City has created the perfect storm in many major cities in the U.S. - the perfect storm for investors to find great real estate deals, that is.

Large inventories, low interest rates and homeowners hungry to sell all make certain cities ideal for picking an affordable home or two. Before you break a leg rushing out to buy that bargain real estate, however, you'll want to keep in mind the most important factors in a successful real estate deal.

Location, condition, price and financing are all consideration you'll want to keep in mind in order to successfully find and acquire a great real estate deal.

If you're looking to buy rental property that will be paid for monthly, then you may want to set your sights on lower-middle-class areas. Most owners who occupy their homes in these areas keep their homes well maintained.

Although you'll want to avoid obvious signs of a bad neighborhood, like boarded up homes or gang graffiti, accessible transportation and recent signs of construction can translate into good income on rental properties. It is important to note that prospective renters with children will want to live in areas with good public schools. Neighborhoods where homes are similar in size and have similar amenities are also preferred, along with areas where homes are mostly three-bedroom, two-bath or more.

Homes that are less than ten years old are more favorable, since almost all of its systems will be current, and no major renovations should be needed for some time. If considering a home more than 50 years old, make sure all systems have been updated, from wiring to plumbing. If not, you're going to be investing a lot of money on repairs.

The ideal situation would be to purchase a home that does not need repairs; however, there are an abundance of homes on the market today that need significant repairs, but can be bought at bottom basement prices. Many are owned by the lender, and are uninhabitable. Others may not need anything more than a coat of paint or new carpet.

If you decide to make an offer on a home that you think is in need of repair, make sure you make it contingent upon the inspection of the home, along with an acceptable estimate for all necessary repairs.

Price may not be that easy to determine, since the sale of so many distressed properties have negatively impacted the sale price of all homes in the area. Bank-owned properties are in need to be sold, though. Banks are interested in holding property; they are interested in making money off the property based on interest. Many have been willing to take a loss on property just to unload it.

Your target on a bank-owned property would be to offer 50 to 60 percent of the listed price, depending on the condition of the property. The more work that needs to be done, the deeper the discount you ask for. That will give you a starting place for negotiations.

Your final frontier to conquer in your investment is financing. Fannie Mae may be where you'll want to start on your quest for financing. Also, check with your local lender. Mortgage brokers often can find you the very best deals on interest rates and many can be located easily on the web. Just make sure they are reputable. Ask for all fees in writing prior to signing anything.

Ki loves to bike the Austin hill country. He has worked with Austin real estate for almost a decade. His website has a search for Austin homes along with a Austin real estate blog that allows investors to keep tabs on the Austin market.

The saying "No news is good news" might be applicable with the recent trend with mortgage rates. For the last 2 or 3 weeks for the most part rates have stayed pretty much unchanged. The reason why this could be considered good news is that the economy and stock market seem to be improving. There was a lot of discussion that an improving economy would lead to inflation and in turn higher interest rates. While I still think we are eventually headed to higher interest rates it's nice that at least that is not happening now. This week the 30 year mortgage rate dropped from 5.25 to 5.22. We also saw the 15 year rate drop from 4.69 to 4.63. The 5 year arm and 1 year arm both dropped .02 points this week (4.75 to 4.73 and 4.80 to 4.78 respectively). Below are rates for the last few weeks and from January 15th (6 months ago).

Aug 06, 2009
30-yr 5.22 15-yr 4.63 5-yr ARM 4.73 1-yr ARM 4.78

Jul 30, 2009
30-yr 5.25 15-yr 4.69 5-yr ARM 4.75 1-yr ARM 4.80

Jul 23, 2009
30-yr 5.20 15-yr 4.68 5-yr ARM 4.74 1-yr ARM 4.77

Jul 16, 2009
30-yr 5.14 15-yr 4.63 5-yr ARM 4.83 1-yr ARM 4.76

Jul 09, 2009
30-yr 5.20 15-yr 4.69 5-yr ARM 4.82 1-yr ARM 4.82

Jan 15, 2009
30-yr 4.96 15-yr 4.65 5-yr ARM 5.25 1-yr ARM 4.89

Looking above the 30 year mortgage rate has only moved from 5.14 to 5.25 in the last month which is remarkably stable considering the changes in the economy and the mortgage industry. Rates are still higher than what we saw six months ago but the change is not huge. To illustrate this let's look at changes in actual mortgage payments. Using our free mortgage calculator we took today's rates and translated them into a payment for a 200k loan. We did the same thing with rates from July 23 (two weeks ago) and rates from January 15th, 2009 (6 months ago).

Aug 06
30-yr $1100.69
15-yr $1543.3
5-yr ARM $1040.88
1-yr ARM $1046.91

Jul 23
30-yr $1098.22
15-yr $1548.44
5-yr ARM $1042.08
1-yr ARM $1045.7

Jan 15
30-yr $1068.75
15-yr $1545.36
5-yr ARM $1104.4
1-yr ARM $1060.23

From two weeks ago we are see a change of $2.47. This is pretty insignificant. When mortgage rates first started dropping we saw a difference of $35 from one week to the next running this same calculation. Compared to 6 months ago we see a rise of $31.94 or 2.98 percent. Considering the time frame this is still a relatively small change.

First off what is my advice for people looking for a home and a mortgage? I would still avoid arms. Nothing has changed basically arm's offer a small benefit right now but with most experts predicting higher rates in the future it makes sense to look in for a longer period of time with a 30 year fixed mortgage. What is our prediction moving forward? Long term I would expect rates to move up perhaps to 10 percent or more. In the short term I have been saying that it's hard to know. Know with the economy improving I would expect to see higher rates than what we are currently experiencing a month from now. That is assuming the economy doesn't start sliding backwards.


Ki lives and works in central Texas. His website covers the Austin Texas real estate market. It also has information on historical mortgage rates along with a mortgage rates widget

After falling from 5.59 to 5.38 the previous week it looks like mortgage rates for the most part held steady this week. Of the four major mortgage products two fell and two rose. But for all four the movement was minimal. Thirty year mortgage rates rose from 5.38 to 5.42 and the 5 year arm rose from 4.97 to 4.99. The 15 year rate dropped slightly from 4.89 to 4.87 and the 1 year arm fell from 4.95 to 4.93. Below are rates for the last few weeks.

Jun 25, 2009
30-yr 5.42 15-yr 4.87 5-yr ARM 4.99 1-yr ARM 4.93

Jun 18, 2009
30-yr 5.38 15-yr 4.89 5-yr ARM 4.97 1-yr ARM 4.95

Jun 11, 2009
30-yr 5.59 15-yr 5.06 5-yr ARM 5.17 1-yr ARM 5.04

Jun 04, 2009
30-yr 5.29 15-yr 4.79 5-yr ARM 4.85 1-yr ARM 4.81

May 28, 2009
30-yr 4.91 15-yr 4.53 5-yr ARM 4.82 1-yr ARM 4.69

Dec 24, 2008
30-yr 5.14 15-yr 4.91 5-yr ARM 5.49 1-yr ARM 4.95

So while the 30 year rate has dropped from its recent peak of 5.59 on June 11, 2009 we are still up from the extremely low rates we saw in May. One interesting thing to note is that in the last 6 months 30 year rates have increased from 5.14 to 5.42. On the other hand 5 year arms have dropped from 5.49 to 4.99. Even with these changes I would still look for fixed rates over arms. There is a good chance that rates could be much higher in a year or 5 years when the arms would expire.

In addition to rates we also like to look at actual mortgage payments. Using our mortgage calculator we took rates from this week and converted them into a mortgage payment on 200k loan. We also did the same thing with rates from June 18th and from December 24th (6 months ago).

Jun 25
30-yr $1125.55
15-yr $1568.07
5-yr ARM $1072.42
1-yr ARM $1065.1

Jun 18
30-yr $1120.56
15-yr $1570.15
5-yr ARM $1069.97
1-yr ARM $1067.53

Dec 24
30-yr $1090.82
15-yr $1572.22
5-yr ARM $1134.32
1-yr ARM $1067.53

So as we can see the movement in the last week is minimal. Compared to 3 months ago a mortgage payment today would be $34.73 higher or 3.18 percent. Even though mortgage rates are higher than what they were before current rates are still low by historical terms.

Mortgage rates only provide part of the picture for how the lending environment is affecting the real estate market. The other part is that lenders remain very strict in their policies on when they will give out loans. So lenders are offering loans with low mortgage rates but they are not offering them to everyone.

This of course is having a serious dampening effect on the real estate markets potential recovery. Freddie Mac is particular is enforcing a number of new rules. While the government has spent significant resources on keeping mortgage rates low and easier and more effective method to help the real estate market would be to look through Freddie Mac's loan restrictions.

Ki is a realtor in Austin Texas. His site is a resource on Austin Texas real estate. It also provides a mortgage widget along with mortgage calculator code

So for the previous two weeks we saw sizable gains in mortgage rates. Between May 28th and June 11th 30 year mortgage rates jumped from 4.91 to 5.59. This week we saw rates drop down to 5.38. Although we are still above what we were at two weeks ago it's nice to see mortgage rates moving back down. The other major mortgage products all went down as well. The 15 year dropped from 5.06 to 4.89. The 5 and 1 year arms dropped from 5.17 to 4.97 (5 year arm) and 5.04 to 4.95 (1 year arm). Below are rates for the 4 major mortgage products since May 21st.

Jun 18, 2009
30-yr 5.38 15-yr 4.89 5-yr ARM 4.97 1-yr ARM 4.95

Jun 11, 2009
30-yr 5.59 15-yr 5.06 5-yr ARM 5.17 1-yr ARM 5.04

Jun 04, 2009
30-yr 5.29 15-yr 4.79 5-yr ARM 4.85 1-yr ARM 4.81

May 28, 2009
30-yr 4.91 15-yr 4.53 5-yr ARM 4.82 1-yr ARM 4.69

May 21, 2009
30-yr 4.82 15-yr 4.50 5-yr ARM 4.79 1-yr ARM 4.82

Dec 18, 2008
30-yr 5.19 15-yr 4.92 5-yr ARM 5.60 1-yr ARM 4.94

So why are mortgage rates dropping? Basically for the last few weeks the economy has been improving and consequently we have seen mortgage rates increasing. In addition to that the government held a few bond auctions that went poorly which also provided upward pressure on mortgage rates. In the last week we have seen some signs the economy might not be recovering as cleanly and quickly as first hoped which has the effect of pushing mortgage rates down.

In addition to mortgage rates it's always nice to look at actual mortgage payments. We took today's rates and used a mortgage calculator and turned them into mortgage payments for a 200k loan. We also did the same thing with rates from June 11th (last week) and rates from December 18th (6 months ago).

Jun 18
30-yr $1120.56
15-yr $1570.15
5-yr ARM $1069.97
1-yr ARM $1067.53

Jun 11
30-yr $1146.89
15-yr $1587.84
5-yr ARM $1094.51
1-yr ARM $1078.53

Dec 18
30-yr $1096.98
15-yr $1573.26
5-yr ARM $1148.15
1-yr ARM $1066.32

As we can see payments based on 30 year mortgage rates the monthly payment on a 200k loans is about $26 dollars lower than they were last week.

So what is our advice? First of all I would still recommend 30 year mortgages. While rates on 5 and 1 year arms are lower I still expect rates to be much higher in 1 year and 5 years from now. So basically it's not worth the risk of having to refinance in a few years. Although rates are higher than they were a few weeks ago they are still near historical lows.

As always it's hard to predict what is going to happen moving forward. I would expect volatility in rates over the next month as we figure out whether the economy is one the road to recovery. Once the economy recovers we expect rates to increase rapidly. The government borrowed 50 cents of every dollar it spent this year. That mountain of debt should lead to higher interest rates.

Ki works as realtor in Austin Texas. His site is filled with information about Austin Texas real estate. It also provides information on mortgage rates along with a free mortgage calculator.

Last week mortgage rates moved up rapidly, moving up from 4.91 to 5.29. This week mortgage rates again jumped up .3 points going from 5.29 to 5.59. On May 21st rates were sitting at 4.82 which was a 40 year low. Now just a few weeks later rates are at 5.59. This is the highest we have seen rates since November 26, 2008. Unlike last week this week all the other major mortgage products went up as well. The 15 year rate jumped from 4.79 to 5.06. The 5 year arm moved from 4.85 to 5.17 and the 1 year arm moved from 4.81 to 5.04.

So what caused the sudden spike in mortgage rates? Basically the government had a few recent auctions of government debt that went poorly. With less interest in government debt, t-bills and mortgage rates have started to increase.

Below are rates for the major mortgage products for the last few weeks.

Jun 11, 2009
30-yr 5.59 15-yr 5.06 5-yr ARM 5.17 1-yr ARM 5.04

Jun 04, 2009
30-yr 5.29 15-yr 4.79 5-yr ARM 4.85 1-yr ARM 4.81

May 28, 2009
30-yr 4.91 15-yr 4.53 5-yr ARM 4.82 1-yr ARM 4.69

May 21, 2009
30-yr 4.82 15-yr 4.50 5-yr ARM 4.79 1-yr ARM 4.82

May 14, 2009
30-yr 4.86 15-yr 4.52 5-yr ARM 4.82 1-yr ARM 4.71

Dec 11, 2008
30-yr 5.47 15-yr 5.20 5-yr ARM 5.82 1-yr ARM 5.09

In addition to rates we like to look at mortgage payments. Using a mortgage calculator we took rates from this week and translated them into a mortgage payment for a 200k loan. We also did the same thing with rates from June 4th, May 28th and from December 11, 2008 (6 months ago)

Jun 11
30-yr $1146.89
15-yr $1587.84
5-yr ARM $1094.51
1-yr ARM $1078.53

Jun 04
30-yr $1109.36
15-yr $1559.79
5-yr ARM $1055.38
1-yr ARM $1050.53

May 28
30-yr $1062.66
15-yr $1533.05
5-yr ARM $1051.74
1-yr ARM $1036.07

Dec 11
30-yr $1131.81
15-yr $1602.5
5-yr ARM $1176.05
1-yr ARM $1084.67

So as we can see mortgage payments have jumped drastically. Compared to 2 weeks ago the mortgage for a 200k loan has increased by $84.23 or 7.3 percent.

One point is that although rates have jumped rapidly historically speaking rates are still very low.

So what do we expect moving forward? There is some speculation that rates will fall after the recent rise. I am not sure if this will happen or not there are some powerful forces moving mortgage rates. And regardless of what happens in the next few weeks with the massive government borrowing its expected that in 6 months rates will be significantly higher than what we are seeing today.

So what is our advice to people looking for a home? First of all I would lock in immediately. While rates might go down there is a significant chance will continue to rise. If rates fall you can always relock at the lower rate. Additionally, I would avoid arms. Although the difference between 30 year rates and arm's has increased I would expect rates to be much higher in a year.


Ki lives in Austin Texas. His website provides information on Austin Texas real estate. It also provides a mortgage widget and a free mortgage calculator.

Mortgage Rates spiked up this week. The 30 year rate jumped from 4.91 to 5.29. This is the highest we have seen mortgage rates all year. Last week mortgage rates moved from 4.82 to 4.91 last week. What is interesting is that in two weeks mortgage rates have moved from near all time lows (the all time low was 4.78) to the highest point of the year. The 15 year rate moved up from 4.53 to 4.79. We did not see as much movement in the arms. The 5 year arm rose from 4.82 to 4.85 and the 1 year arm moved from 4.69 to 4.81.

Two weeks ago 30 year rates and 1 and 5 year arms were all hovering around 4.8 making the arms somewhat pointless. There is no reason to get an ARM when one can get a 30 year fixed mortgage for the same rate. With the sudden rise in the 30 year rate the arms have become relevant again. I still think the 30 year mortgage product is preferable over the arms even at current rates. Although 30 year mortgage rates have risen the expectation is that they will continue to rise for the rest of the year. Below are rates for the last few weeks as well as from 6 months ago.

Jun 04, 2009
30-yr 5.29 15-yr 4.79 5-yr ARM 4.85 1-yr ARM 4.81

May 28, 2009
30-yr 4.91 15-yr 4.53 5-yr ARM 4.82 1-yr ARM 4.69

May 21, 2009
30-yr 4.82 15-yr 4.50 5-yr ARM 4.79 1-yr ARM 4.82

May 14, 2009
30-yr 4.86 15-yr 4.52 5-yr ARM 4.82 1-yr ARM 4.71

May 07, 2009
30-yr 4.84 15-yr 4.51 5-yr ARM 4.90 1-yr ARM 4.78

Dec 04, 2008
30-yr 5.53 15-yr 5.33 5-yr ARM 5.77 1-yr ARM 5.02

In addition to mortgage rates we also like to look at mortgage payments. Using our mortgage calculator we translated today's mortgage rates into a monthly payment on a 200k loan. We did the same thing with rates from last week and rates from December 4, 2008 (6 months ago).

Jun 04
30-yr $1109.36
15-yr $1559.79
5-yr ARM $1055.38
1-yr ARM $1050.53

May 28
30-yr $1062.66
15-yr $1533.05
5-yr ARM $1051.74
1-yr ARM $1036.07

Dec 04
30-yr $1139.34
15-yr $1616.18
5-yr ARM $1169.68
1-yr ARM $1076.08

Usually there is not too much difference from week to week. That is not true this week. The payment on a 200k loan has risen 46.7 or about 4.4 percent. Payments are down 2.63 percent from what they would have been 6 months ago.

So what is our advice to people looking for a home? Unfortunately I think mortgage rates will continue to rise so it's probably best to lock in rates now. Second although arms are a viable option I would still take the 30 year rate over the 1 or 5 year arm. There are some expectations this recent rise is just the tip of the iceberg and we could see rates above 12 percent before this is over with.


Ki maintains a website about Austin Texas. His site also provides information on mortgage rates along with a free mortgage calculator.

Starting the search for a new home can be both exciting and a little daunting. Whether Austin has been home-base for years or a brand new place, deciding which neighborhood to buy a house in can be a big decision. If you could live anywhere, where would you go?

Generally speaking, the house hunt is restricted by factors such as price and commute. But that is only the start. Some other things to consider are schools, crime rate, taxes, traffic, and proximity to shopping or parks. The list of things to mull over when looking for the right neighborhood can get quite long.

Spending some time compiling a list of the most desirable aspects of a neighborhood--a dream neighborhood--is a good place to start. Thinking of the smallest details like sidewalks or bigger particulars like typical lot size can help narrow the list before the house hunt actually begins.

Here is a typical list of neighborhood specifics for a family relocating to a new area:
- In a good school district.
- Sidewalks and running trails throughout the neighborhood.
- Close to parks and pools.
- Reasonable neighborhood association fees.
- Reasonable taxes.
- Low crime rate.
- Within a ten minute commute to work.
- Close to shops and restaurants.
- Away from busy streets or main thoroughfares.
- Other families in the neighborhood.

This is just a sample of attributes a family may desire in a neighborhood. The list would look completely different for a young professional who may want the flexibility to bike to work or live closer to the entertainment district. The important thing is to come up with a few neighborhoods to focus on for the house hunt.

After compiling a list, spend some time driving and walking though the neighborhoods of choice. What might look good on paper may be a different story in reality. Even if a neighborhood looks nice and peaceful on a Saturday afternoon, the morning commute traffic could be awful on a Monday. Do some investigating by driving through the neighborhood at different times of day as well as different days of the week.

Getting out of the car and walking around a neighborhood can also be very enlightening. People tend to notice different things when on foot that can't be seen from the street. Also, don't be afraid to ask people's opinions around the neighborhood. While it's probably not a good idea to go knock on doors, talking to someone out watering the garden is the perfect way to get some insider information.

Next, head to the computer and search for information on the neighborhood through newspaper archives and other resources. The more information at hand the more informed one can be on the big decision of where to live. Also, look at neighborhood desirability by talking to your real estate agent about the stability of prices and how long houses tend to stay on the market in particular neighborhoods.

Perhaps the most important thing is to be flexible and keep and open mind. After all, settling in a new neighborhood is a big decision but also an exciting one.


Ki moved to Austin for school. After graduation, he got interested in the real estate. His website has information about Austin Texas real estate. It allows future owners to search the Austin MLS or read his blog with updated statistics on the Austin real estate market.

Okay, so, the economy's down and you're feeling down because of it. You had planned on putting your home up for sale by now. You're discouraged, though, because on your street alone you see three other homes for sale. How can you compete, you wonder, with so many other homes on the market?
Don't lose heart, you're about to learn how.

Stand Out. The challenge you have ahead of you is how to make your home stand out from the rest. The way you do that may not be in the way you think, though.

Before you contact a realtor to put your home up for sale, there are several things you're going to have to take care of. The first is to sit back and take a breather. Now, grab a tablet and a pen.

Note Repairs/Fixes. You're going to need to walk through your home from one end to the other. Your mission is to make note of every little thing that needs to be repaired or completed. You need to note absolutely everything. Only note projects you've started or items that are in obvious need of repair. Do not note anything that you would like to get done on the home, but never started.
Organize your list according to room. After you've walked through each room of your home, walk outside and take more notes. What about your yard? Are there any bare spots you need to fix, plants that are dying or dead, stones or yard bricks out of place? How about the exterior of your home? Any repairs needed there? Also, the color. Is it neutral, or did you paint it that bright blue to match the color of your spouse's eyes?

Make note of it all.

Do the Work. Next, you'll need to make a plan as to how you're going to get it all done. Assess how much time you think all of it will take, and make a schedule as to what days and times you'll commit to work on it. Set goals as to when you want to have each room finished. Set a final goal for the date you want to have the house ready for market.
Get your spouse and children involved in the project. You can create some memories. Your family will always remember how you all worked together to get that home sold.

Ask extended family and friends to help out, if you need it. Try to keep on task and complete your repairs by your due dates. You'll be glad you did.

Prepare Pricing. All repairs are finally done and everything's checked off your list? Then, there's one more thing you need to consider. Once you contact a realtor, you'll be provided an estimate as to how much your home is worth in the market. Want to be an aggressive seller? List it for a percentage less than the market value of your home. Use the percentages as follows:

* Up to $150,000 = 10%
* $150k to $500k = 8%
* $500k to $1m = 5%
* $1m and up = 2%

You have to keep in mind that new home listings get the largest viewing audience. If you don't price it right going into the listing, you'll miss out on major opportunities to sell your home to the right audience. Your home will get less viewing after it's been on the market after a few weeks.

Even if you lower the price several weeks after you've listed it, the home has lost some significant value and luster in the eyes of the buyer. You probably won't get what you're asking for.
Some other considerations you might include are incentives for an agent to sell your home, or incentives for a buyer to buy your home. Offer to pay half of the closing costs.

List Home. Now that you've given it much thought and decided on a competitive sale price, it's time to call your realtor. Interview several in your area before you decide on one. Call the actual realtor office and find out who the top sellers are. These people are the ones you want listing your home. Find the right realtor, and have your home listed for sale.

You are now equipped and empowered to put your home on the market and watch it sell itself. If you follow through with all that's needed, you'll be hugely successful in the sale of your home.

Austin, Texas is a growing and thriving community. Ki maintains a website to help future buyers move to this community and understand the Austin real estate market. They can search homes in the Austin MLS. His site also provides statistics on Austin real estate and West Austin real estate.

Staging a home can end up being a valuable tool in selling the house. Not only can it assist in selling a house, but it can also help the seller get top dollar.

The amount of staging needed varies wildly from a small scale de-cluttering of a home to hiring staging professionals to the tune of several thousand dollars, but the goal is the same- creating a pleasant mood by making a house appear bigger, brighter and warmer while neutralizing the area so prospective buyers can visualize how their own furniture and belongings can be incorporated into the home.

In a good or bad housing market, some studies have shown that staged homes can add between 10 and 15 percent to the sale price of many homes. Sellers who don't take the time to properly stage may end up with their house on the market for longer periods of time, and agreeing to a lower selling price to a buyer who can see the potential the home has that other viewers did not.

Though professional home stagers may be needed if a home is completely empty, the majority of staging can be accomplished by the seller. A quick visit to some newly built model homes can help a seller get an idea of how interior designers and stagers prepare a home. There's a delicate balance between keeping the home sparse enough to appear as spacious as possible, and picking the right pieces to maintain a warm and livable space.

The first impression a potential home buyer will have of a house will be of the exterior, so nice curb appeal is important. A fresh coat of paint on the front door, a nicely trimmed lawn, and fresh flowers in a garden or on the front porch are easy and effective staging techniques. A brightly colored patio set in the backyard can help the home's exterior appearance when the buyer steps out the back door.

Kitchens and bathrooms are two of the most important rooms in buyers' eyes. Kitchen counters should be clear of all small appliances and other items that tend to gather on them. When counter tops are cleared of clutter, the amount of working surface increases. A splash of color, such as a bowl of fruit is acceptable, but a refrigerator, covered in personal pictures and comic strip cutouts, is not.

Bathrooms should look as open and airy as possible, and above all clean. A new white toilet or tub, or a new set of sink faucets could be a worthy investment during the staging process. Personal toiletries, like toothbrushes, should be removed from sight, while the addition of scented soaps, lotions and clean white towels could give the room more of a spa type feeling.

For bedrooms, remove as much unnecessary furniture as possible, and keep it in the garage or in storage if need be. For smaller rooms, hang curtains high on the wall, and do not cover the actual window with them. Doing so will increase the apparent height and width of the room. Neutralize the rooms by removing all personal pictures and keeping wall colors a nice warm, clean color.

By following a few simple and effective staging guidelines, a home seller can increase his or her chance to sell the home quickly, and the time and effort will pay off by netting the highest offer as well.

Working as a realtor in Austin Texas Ki helps people search for Austin homes. He provides general information about Austin real estate online as well as tool that graphs mortgage interest rates.

Allandale is the name of a lovely neighborhood in central Austin, although the area was originally considered to be northwest Austin, before Austin’s expansion into a large metropolitan area. Allandale recently celebrated its 35th anniversary as an active central Austin community, and the Allandale Neighborhood Association has been a presence in the neighborhood since 1973. Currently, Allandale is home to over 21,000 residents, and two of the boundaries of the neighborhood are the MoPac Expressway and Burnet Road, which form the western and eastern perimeters, respectively.

Typical residences in Allandale are three to four bedroom single family homes, most within the $250,000 to $300,000 price range, although more and less expensive housing can be found too. The students in Allendale attend Austin Independent School District schools, and there is an elementary school named Gullet Elementary, as well as a middle school named Lamar and a high school named McAllen High School. Allandale has the 28th largest neighborhood association in Austin, and there is an activity center named the Northwest Recreation Center which is ideal for indoor as well as outdoor sporting activities. The Allandale Neighborhood’s other borders are generally considered to be Anderson Lane and Hancock Drive, as well as Shoal Creek, and the neighborhood is chock full of restaurants, shopping, and various types of dwellings.

The roots of the Allandale neighborhood go back to the 1930s, and at that time, it was considered to be a suburb outside of Austin proper. George Davis was the original owner of most of the land in the neighborhood, and he obtained the land from the President of the Republic of Texas in 1841. A grant of over 3,100 acres was given to him in exchange for his service in the battle of San Jacinto, and some of his descendants still live in the neighborhood today. The Davis family also has a family cemetery on Vine Street to this day.

Housing is slightly more expensive in the neighborhood than in some areas of Austin, and the vintage homes from the 1940s and 1950s frequently boast mature landscaping with large yards, a perfect setting for families with children. There are fixer-uppers to be found in the neighborhood too, along with apartments and duplexes, among other choices. Since Shoal Creek, with its numerous parks and hike and bike trails, runs along the Allandale neighborhood, there is plenty to do from a standpoint of recreation as well.

Some of the eateries in the Allandale area include Phil's Icehouse, Ginny’s Little Longhorn Saloon, and Amy's Ice Cream, all local hotspots, as well as many popular family restaurants, including the Hang Town Grill, and the Frisco, which occupied the same location on Burnet for years until it recently closed. A popular park in the neighborhood is named Beverly Sheffield Park, and the park is adjacent to Shoal Creek, and has a beautiful duck pond as well as an Olympic sized swimming pool. The park also includes picnic sites, barbecue pits, ball fields, tennis courts, and a fishing pier, and is a home away from home for the children of the area.

Escapeso helps buyers and investors looking for Austin real estate. Their website provides a map based search of the Austin MLS and updated market statistics on their Austin real estate blog.

As the Austin Texas real estate market expands in all directions, areas we used to think of as “way out there” are not only seeming closer, but are getting their own infrastructure. Maple Run in Southwest Austin is just one of those areas. Located south of William Cannon, north of Slaughter, west of Brodie and east of Mopac, this little oasis offers quiet streets, attractive and affordable housing, burgeoning businesses and is a hop, skip and a jump to one of the city’s cleanest, newest and nicest parks.

Each street in the area seems to have its own personality. The Deer Park subdivision is full of brick homes, with meticulously manicured gardens and lawns. These folks do a magnificent job with holidays – their Christmas lights are worth a trip, and Halloween is always scary! A few blocks down, you will find a more relaxed atmosphere, maintained just as nicely, but with a more casual feel. The busiest street is Copano, which is not busy at all! The houses in this area can run the gamut from a 3,000 square foot two story brick home with a pool to a 1200 sq. foot one level 2 br/ 2 bath with a nice yard. Many of these homes back to a greenbelt – nice and quiet.

Brodie Lane, one of the main north-south thoroughfares of the area, is full of convenient businesses closer to Ben White, but as you follow the street south of William Cannon heading down to Slaughter you find new business popping up almost every day. Take the intersection of Alexandria and Brodie – you have the best Cajun food and live music in town, an Austin Regional Clinic, Love Pet Hospital, Shipley’s Donuts, a florist, nail salons, a JiffyLube, and more! Just up the road is a Montessori school, just down the road is the Kid’s Zone preschool and daycare. Austin Telco and Advance Auto just came to the area, although the property adjoining them still has cattle on it – a truly Austin juxtaposition.

Families will love the Longview playground and park located at the eastern end of Harper’s Ferry. Swings and a play structure perfect for toddlers on up to school age are in great condition, and there are lots of trees for shade. A big field is perfect for kicking the ball or throwing the Frisbee, and there is a basketball court right up the hill. If you are looking for a little more, just head over to Dick Nichols – just west of Mopac off Davis. The toddler structure here is brand new, and the bigger kids one is in great repair. Picnic tables, a fountain for splash play, volleyball courts (or the world’s largest sandbox, depending on your age), tennis courts and a hike/bike trail can all be found here. Their pool is one of the best, with separate shallow and deep ends, plus a toddler wading pool – all crystal clear and in excellent condition.

It might seem “way out west,” but Southwest Austin is only 15 minutes to downtown, and the bang for your housing buck make it well worth considering.

Escapeso Realty helps buyers looking for properties in the Austin Texas real estate market. Their site allows potential to home buyers to search the Austin MLS and read about the latest market updates on their blog about Austin real estate along with info on mortgage interest rates

There are some home renovations that really should be left to a professional. Finding a good contractor that is trustworthy and dependable can sometimes be a challenge, but with some preparation it can be done.

Before accepting to work with a contractor, ask for a list of references. Ideally, the list will be fairly long, and not rigged towards a few happy customers. Call these references, skipping around from recent customers to older ones to see how the work has held up. If possible, visit one of the remodel sites in person. Ask about the quality of the work, and if the contractor stayed on budget and finished in a timely manner. Also, check how the contractor dealt with problems that arose, and if the reference would use him again.

A good contractor is one that the client feels comfortable speaking with. He should have clear solutions to your remodeling ideas. The contractor may be in your house for an extended period of time, and some problems will arise, so having good chemistry with this person is key to having a positive remodeling experience.

After getting a few different bids, do not base the job on lowest price alone. Read the details of the bid. It’s possible that if the cost for materials is cheaper than other bids, it could be an inferior product that won’t last. If one bid is significantly lower than the others, the contractor could desperate and his workmanship may be poor.

Make sure that the contractor is a professional. Verify he has workman’s compensation insurance in case a worker is injured in the home, and general liability insurance for any damage that might accidentally happen to house. Major remodeling improvements legally require a building permit so inspectors will check over the contractor’s work. Make sure the contractor applies for these permits. Certain industries allow contractors to get professional designations, such as Certified Remodeler and Graduate Certified Remodeler. Check if the contractor is part of any trade association, as they are more likely to be keeping up with current industry standards and practices.

Once a contractor is chosen, it’s good to have a contract written up so there is no confusion during the actual remodel. The contract should have the starting and projected ending dates, as well as a payment schedule which details when payment is due, and how much each payment will be. Usually, certain amounts will be paid after particular milestones are completed in the project. Also, have the contractor put any warranties he offers into the contract. Outline which duties the contractor or the homeowner will perform, such as cleanup when the job is completed, in the contract to avoid butting heads when the time comes.

Though a contractor may be needed for large remodel jobs, a homeowner can save money along the way by doing some of the low level work, such as painting walls or ceilings. Some contractors will allow the homeowner to pick up materials, such as lumber, toilets, flooring, etc, which would have been added as a surcharge on the final bill.

After some research, well thought out questions, and open communication, landing the perfect contractor for those large remodeling jobs can be achieved.

Ki operates as a real estate broker in Austin Texas. His site is filled with information about Austin real estate along with providing visitors information about mortgage interest rates along with a graphical search of the Austin MLS.

Two beautiful areas of Austin which are also very historic are the Tarrytown neighborhood and the Deep Eddy neighborhood, and these two areas are adjacent to each other with Tarrytown being slightly farther north than Deep Eddy. These areas are situated in western Travis County, adjacent to Lake Austin, which is what the part of the Colorado River which is just west of Lady Bird Lake is called. These areas roughly encompass the part of Austin between Lake Austin Blvd. to the south, and Loop One to the east, which is also called the MoPac, since it runs alongside the Missouri Pacific railroad tracks for much of its length. The western border of both Tarrytown and Deep Eddy is the Colorado River, also known as Lake Austin in the area, and many homes in the area have lakefront access. The Tarrytown neighborhood is roughly bordered on the northern edge by 35th Street, near the old military base which is called Camp Mabry. Camp Mabry was named after Brigadier General Woodford H. Mabry, who was the adjutant general of Texas in the late 1800’s. The base originally covered ninety acres of land, but by 1911, Camp Mabry had expanded to 311 acres. During the onset of World War I, the Texas National Guard utilized the camp, which was later used to train auto mechanics for the army. At the present, the post houses the 136th Regional Training Institute, which is located in the Texas National Guard Academy building. The post celebrated its 100th year of operation in 1992, and enjoys the distinction of being the third oldest active military installation in Texas. The base had also been used for the Department of Public Safety training schools in the past, and has hosted many military dignitaries over the years. Numerous historic aircraft are displayed at Camp Mabry, and these planes are visible from Loop One to motorists. Camp Mabry is currently the home of the Texas Military Forces Museum and has many interesting exhibits on display.

The southern border of Tarrytown is the Deep Eddy area, and its southern boundary is the lake. The Deep Eddy area is frequently referred to as the Lake Austin area since Lake Austin Blvd. runs alongside the southern area of the neighborhood, and the Clarksville neighborhood area is just east and a little bit south of Tarrytown. All three of these neighborhoods meet around Eilers Park, which is where Deep Eddy Pool is located. The concrete pool at Deep Eddy was built in 1916, along with a bath house, and Deep Eddy Pool is the oldest outdoor swimming pool in Texas. Deep Eddy was originally a natural swimming hole on the river and is spring-fed. The pool and park are bordered on one side by the lake and the hike and bike trails that encircle the lake along the northern shore. Deep Eddy is a very popular spot for picnicking, swimming, wading, and many other family activities, and is surrounded by beautiful, stately Oak, Banana, and Cottonwood trees which provide shade to many of the seating areas of the park. Occasionally, well known family-oriented films are shown at the pool on weekend nights, called Splash Nights, and watching the Wizard of Oz or something similar on a Saturday evening from a float in the pool with family members and friends is a special treat for the residents of the area and visitors to the pool.

There are many nice restaurants in the Tarrytown and Deep Eddy areas, including Magnolia Café and Maudie’s, which are both near Deep Eddy, and which specialize in breakfast items as well as Mexican food favorites respectively. Kerbey Lane Café, which is farther north, reasonably close to Camp Mabry, is in the Tarrytown area, and Zoot, a continental restaurant which pairs very appropriate wines with its spectacular entrees, is closer to the Deep Eddy edge of Tarrytown.

There are many nice places to live in this old, historic region, including homes, apartments, condominiums, and University of Texas dormitories, and also many schools, a library branch, and excellent medical facilities at Set on Hospital. Tarrytown is a must-see area when visiting Austin, or for residents alike!

Ki's site provides a guide to Austin Texas real estate along with a search for homes in the Austin MLS. He also makes regular market updates on blog covering Austin real estate.

One of the most timely and costly home improvement projects any homeowner can take on is a kitchen makeover. Whether a homeowner desperately needs a kitchen revamp, or is tired of the dated look of the kitchen, there are several options to freshen up the area.

The easiest fix for a sparkling new(ish) kitchen is a good thorough cleaning. Over years of use, kitchen cabinets take on food, heat, and grease that tends to build up. Though it might seem simpler to leave cabinet doors attached to clean them, taking time to remove the doors allows for easier access in the long run, though it’s advisable to number the doors to keep track of which goes where. There are many cleaners on the market, but trisodium phosphate, known as TSP, has a great track record as a heavy duty degreaser and cleaner.

After cleaning doors and cabinet sides, the hardware will also need a good soak. Remove the hinges and drawer pulls, and let them sit in a good soapy water mix for 30 minutes. Giving them a light scrub and polish can make them look brand new. If the kitchen needs some updating, changing the hinges and handles or pulls on cabinets is inexpensive, and can dramatically change the look of a kitchen.

For those looking to make a bigger change, and spend a greater amount of time on their cabinets, they can also be refinished. Before refinishing, it’s still advisable to clean the wood thoroughly, as sanding them down could embed dirt and grime even further without a proper cleaning first.

To remove old stain or paint, the easiest way is with a chemical, or paint, stripper. By following the directions of the stripper, the chemicals end up doing most of the work, and the old stain should easily peel away. After the stripping is done, it’s time to sand.

Starting with 120 grit sandpaper should help remove any of the old paint or stain left behind by the stripper. Afterwards, smooth out the wood with 220 grit sandpaper. After the cabinet is properly sanded, apply a primer if painting, or a sanding sealer if staining (which works much like primer, allowing stain to absorb evenly). Once the paint or stain is applied to the cabinets, add a final finish, such as varnish or lacquer to protect the wood. Water-based polyurethanes also do a great job, and are environmentally friendly.

If refinishing cabinets won’t help the kitchen’s appearance, and an entire renovation is out of the question, there are companies that specialize in refacing. After measuring the sizes of the current cabinet doors, a refacing company will custom build new cabinet doors, with a wide choice of stains, finishes and hardware to choose from. This is a good option for those living in older homes whose kitchen cabinets are sturdier and well crafted compared to today’s modular cabinet options.

Lastly, if a brand new kitchen is needed, IKEA has become a popular source. At a much greater discount to other big box stores, IKEA also has user-friendly software to create unlimited kitchen combinations that fit a home’s current dimensions. Also, with kitchens starting at around $2,000, the prices are hard to beat, and may have some savings leftover to contract out the installation.

Ki is a realtor in Austin. He helps people in the market for Austin real estate. He also provides a free mortgage calculator and a free search of the Austin MLS.