Going green is a concept whose time has finally come. Ideas such as green building and adding solar panels to existing homes have received a huge amount of press in recent months. But what do you do if you simply want to stay in your existing home (even if you don't own it) and can't afford the large up front cost of adding solar panels to your roof? Well, the answer is plenty!!

First of all, it is a good idea to check your home to see where you are wasting energy. Simple measures like recaulking around windows, adding weather stripping to doors, and installing foam draft stoppers on all power outlets that are mounted on exterior doors can make a huge difference.Beefing up your ceiling insulation is another very cost effective way to decrease energy use. If you don't have a ceiling but it is time to replace your roof, adding even 2 inches of foam under a tar and gravel roof can keep the house cooler in summer and decrease heating bills in the winter.

Of course, everybody should have a programmable thermostat, programmed to turn heat down automatically at night when you are sleeping and during the day when, perhaps the entire family is either at work or at school. If you can afford it, low e, double pane windows are very efficient ways to save energy in the winter and stay cooler in the summer. (Ask me about what a huge difference it made when I installed them in my own floor to ceiling, west facing windows!!)

Creative landscaping is an often overlooked way of conserving energy and improving the comfort of your home. Instead of a cement patio or driveway, consider one made of cinderblocks with holes in the. You can plant grass on these areas, yet they are durable enough to permit car parking, lawn furniture, and heavy foot traffic. They decrease reflection of heat in the summer and they allow better drainage of surface water in the winter, so more water is returned to the ground with less runoff into storm sewer lines. Deciduous trees will provide shade in the summer but let the sun shine into your home in the winter. Instead of throwing away lawn clippings, you can use them for compost (and add food scraps too!)

For lighting, try to use CFL's (compact fluoresce lights) or LCD lighting whenever possible. This should include porch lights, security lights, lights that you have hooked up to timer to turn on when you aren't home, kitchen and bathroom lights (at least for general lighting, although I still prefer incandescent for reading and task lighting.) No longer are CFL's restricted to the old fashioned warm white or cool white, but they are available in a variety of colors that will fit with any decor.

There are of course, techniques to increase gas mileage (smooth starts and stops, driving more slowly, keeping your car well tuned and your tires inflated correctly... according to the car manufacturer's specification. (According to PG&E, under inflated tires waste 4 million gallons of gas every day!!) Take advantage of our wonderful climate and improve your health by walking or biking whenever possible. Or take public transit, carpool, or purchase a hybrid or other low emission vehicle if you can.

Here are a few extra tips:

1. Unplug all non essential electrical devices, or plug several devices into a power strip and turn off the power strip, whenever you are not using them. Chargers, TV's, microwave ovens, computers, etc. all use power even when they are turned off.

2. Take recycling seriously. Use cloth grocery bags to reduce plastics and also to save trees. Instead of discarding anything that is still useable, try posting it on Craigslist. You can dispose of almost anything on Craigslist. Sometimes you can sell the items, but if it is something old and beat up and not really something that somebody would be willing to pay for, I can all but guarantee that if you offer it for free, somebody will be calling you!! You can dispose of old appliances, computers (be sure to erase all personal information.. best to reformat the disc,) cell phones (check with your carrier to make sure they have "released" the phone or the new owner may not be able to initial service in their name,) furniture (even furniture that charitable organizations will not take for one reason or another,) decorations, you name it!! Used books can go to "Friends of the Library." What they can't use, they will sell. The garbage should be that choice of last resort for any personal belongings.

3. Support green businesses. Green Zebra (www.TheGreenZebra.org) sells coupon books ($25) with coupons for a large variety of green businesses on the peninsula.

4. Monitor you own carbon footprint by going to www.climatecrisis.net/takeaction/carboncalculator .

5. Eat locally grown food. This saves transportation costs and fuel use and also helps to support local industry. There are a few grocery stores that purchase local produce, and almost every city has a farmer's market where you can find fresh, locally grown produce.

Whether you believe in global warming or not (and I do) taking action now will help to preserve our quality of life for future generations. If everybody would adopt even a few of the suggestions listed above, it would make a huge impact on our environment. If every American, for example, replaced just one incandescent light bulb with a CFL, we would save enough energy to light more than 3 million homes for a year, cut annual energy costs more than $600,000, and prevent greenhouse gas emissions equivalent to 800,000 cars (www.energystar.gov )

Copywrite  Lynne Mercer, March 2008

Do not reproduce or duplicate without permission from author. 

1. Property tax valuation will only be reduced IF the fair market value of the property has dropped to below the tax basis for that property. If you purchased a home for $1,500,000 last year (so tax basis is $1,500,000) and it is now only worth $1,300,000, you almost certainly would be granted a reduced tax basis. But if you purchased your property for $800,000 ten years ago and the basis has increased the full 2% per year allowed in each of those ten years, your tax basis will still only be $975,196 and your property value would have to drop below that amount to qualify for a reassessment;
2. The reduced valuation is temporary. If prices go back up again, your tax basis will go back up again;
3. As property values start to increase again (and they will!!) reassessments are not limited by the 2% rule until you basis gets back to where it was before, at which time the 2% annual cap is reinstated. So, if there is a dramatic upturn in home values (which seems to happen frequently on the peninsula) it is possible your tax relief may be short lived. Still, nobody likes paying taxes and even temporary relief is welcome.

Fannie Mae releases guidelines for the temporary increase in the conforming loan limit.

We may have a breakthrough... Fannie Mae has announced the timing of when they will be buying the new "Jumbo-Conforming Loans" as they are now calling loans between $417,000 and the increased limit of $729,750.  Fixed rate loans origninated after March 1, 2008 will be eligible for underwriting beginning April 1, 2008.  Fixed-adjustable loans, like  5/1 and 7/1 ARMs will be eligible begining May 1, 2008.

According to Fanne Mae's most recent update, they will have different (more stringent) guidelines for "Jumbo-Conforming Loans".  This does not come as a huge surprise.  It may, however, limit the number of people who will benefit.

"Jumbo-Conforming Loans", those between $417,000 and  $729,750 are subject to the following restrictions:

• Only 1 unit properties (no 2-plex, 3-plex, or 4-plex).
• When purchasing a new property:
  •  the minimum down payment is 10% with a 700 FICO score for fixed rate loans.
  •  the minimum down payment is 20% with a 660 FICO socre for a 5/1 ARM.
• When refinancing, no cash out is allowed.
• On a second home or investment property, a minimum of 40% down payment is required.
• Consolidating a first mortgage and a second mortgage is not allowed.
• Refinancing with 6 months of a purchase is not allowed (You must have owned the property for at least 6 months before you can refinance the mortgage into a "Jumbo-Conforming Loan").

Overall, these new guidelines will help some people get into a better mortgage at a lower rate.  Now may be a good time to do a "Mortgage Check-Up" to see if you could benefit from these changes. 

This information was provided by Stern Mortgage. For additional information contact Stern Mortgage Company at 650-322-7277

The house version of the economic stimulus bill approved by the House of Commons today would increase the conforming loan limit to as much as $729,750 in areas where home prices are highest. Conforming loans are loans that are guaranteed by Fannie Mae, Freddie Mac, and the Federal Housing Administration (FHA), thus making them more desirable for investors who purchase mortgages. Interest rates on conforming loans tend to be lower because they are less risky for investors. That is good news for borrowers.

Specifically, the approved bill permits Fannie Mae, Freddie Mac, and the Federal Housing Administration to guarantee purchase loans up to 125% of the median home price for a given area, but only until the end of 2008, with a cap of $729,750.00.

This is very good news for people in our area. In Palo Alto 463 single family residences were sold in 2007 with a median sales price of $1,555,000 (data from the Silicon Valley Multiple Listing Service.) In Santa Clara County, 4163 single family homes were sold through the Multiple Listing Service, with a median sales price of $905,000. Even if the new limits are approved, the $729,750 cap will not meet the needs of our clients, but it certainly will help.

The good news is tempered by the fact that the senate has its own ideas as to what should or should not be approved, and rumors abound that they do not want to increase the conforming loan limits. I encourage every person who is reading this article to contact Senators Dianne Feinstein and Barbara Boxer to request that they work to keep this provision in the senate version of the bill. You CAN make a difference! Thank you.

• The tax relief is limited to principal residences;
• The tax relief is limited to acquisition indebtedness plus improvements on the property. Second mortgages and equity loans are not covered unless they were used to acquire, construct, or substantially improve the home.
• The tax relief must have occurred in 2007, 2008 or 2009.
• The tax exemption is limited to $2,000,000 ($1,000,000 for married individuals filing separately.)
• If the debt relief is part of a restructuring where the principal balance is lowered, the basis of the house is lowered by the same amount. This will lead to a larger profit if the house is sold at a later date and could lead to taxation at the time of sale if the profit exceeds the $250,000/$500,000 exemption for the sale of a personal residence