Winter 2008 Features
Go Green on a Budget
Save Now or Save Later?
FOR SALE: Home Staging Tips
Chicago's Transfer Tax Hike
Five Questions to Ask When You're Buying a Condo
Brainteaser (Contest)
Go Green on a Budget
Going green is a noble endeavor in today’s society, but isn’t always manageable in today’s economy. There are, however, many ways to compromise in the middle of the eco-financial landscape. And if you’re renovating or selling your home – even if you’re a first-time homebuyer looking to make a difference. Consider these ways to “Go Green on a Budget.”
Paint the interior of your home yourself
Most paint contains a VOC solvent (volatile organic compound) which contributes to the formation of smog. Using a low-VOC or no-VOC paint can be more expensive, but you can save 75% on house-painting costs by doing it yourself.
Install a programmable thermostat
Today’s buyers are looking for every possible amenity – and, ultimately, signs that they’ll save money the moment they move in. Programmable thermostats were designed to save you and your potential buyer money.
Obtain Chicago rain barrels
The City of Chicago supplies plastic rain barrels to collect runoff for flood prevention and landscaping irrigation. For more information, visit www.cityofchicago.org.
Use a compost pile to create soil
Here’s how: Find a corner in your yard and carefully dispose of leftover food, eggshells, coffee grounds, spoiled vegetables, etc. and mix with dirt. Each week, turn the pile with a shovel for aeration. In a few weeks time, the pile will transform into a nutrient-rich soil. And because of the rising popularity of compost piles, potential buyers may see this feature as a beneficial attention to detail and care for your surroundings.
Plant a tree
Nothing symbolizes a bright new phase of your home’s life to a potential buyer than a brand new tree. Visit your local nursery and learn what kinds of trees grow best in your area.
Use energy-efficient light bulbs
Save energy: replace all standard bulbs with compact fluorescent bulbs for more light and less money.
BYOB
Keep canvas tote bags readily available in your car for grocery shopping trips. You’ll save the planet and space under the sink!
For more information on recycling in the Chicagoland area, the Chicago Recycling Coalition offers additional tips at: www.chicagorecycling.org
Save Now or Save Later
The current mortgage market offers more competitive fixed rate programs, so clients are opting for long-term fixed rate mortgages over shorter-term adjustable products. Fixed rate mortgages deliver long-term stability, and amortize over fixed periods of 15 or 30 years.
But how do you decide between a 15 and a 30 year term? While a 30 year term offers lower monthly payments, a 15 year term gives you great savings in interest across the life of the loan. The following comparison shows the difference in savings:
| Program/Rate | Payment | Year 1 | Year 5 | Year 15 | Total Interest |
| 30 yr fixed 5.625% | $1727 | $16,774 | $15,781 | $12,059 | $321,709 |
| 15 yr fixed 5.125% | $2392 | $15,057 | $11,960 | $781.19 | $130,553 |
FOR SALE: Home Staging Tips
As buyers, sellers and developers negotiate extra add-ons and amenities prior to signing a purchase agreement, many forget the basics of prepping a home before it goes on the market. Consider a few tips:- Buy new furniture. It will look great in your current setting, and even better in your new home.
- Place ice cubes on top of carpet indentations. The ice helps lift the fibers back to life.
- When repainting the walls, choose light, bright colors with neutral tones.
- Store personal photos. Though your buyers would surely love to see the photo of your first skydiving experience, you can always recount the story at the closing.
- Update child bedroom décor to match the theme of the entire home.
- Set a date with your realtor to give you ideas on final touches. He/she will be your best test audience with a motivational deadline.
Chicago's Transfer Tax Hike
The City of Chicago recently declared that the 40% increase of the city’s transfer stamp tax will be absorbed by the seller – and not the buyer – as originally proposed.
The increase was approved last month by both chambers of the Illinois General Assembly as part of a massive financial bailout for the Chicago Transit Authority.
Five Questions to Ask when You're Buying a Condo
1. When was the building built and/or renovated? You can expect different maintenance issues based on the age of the structure.
2. Has there been (or will there be) work done to the building? It’s important to know about recent improvements and/or upcoming projects.
3. What percentage of the building can be rented? If you think you may use the property as a future rental, it’s best to know the condo rules.
4. Does the association allow pets? If so, is there a quantity or weight limit?
5. Is the building managed by the unit owners or by a management company? Self-management can be cheaper, but responsibility can weigh more heavily on unit owners.
Contest
It’s that time again! Email your answer to the brainteaser below, and you’ll be entered in our drawing to win a Bags Game (AKA Baggo) with the sports team design of your choice! Drawing is on May 30th.
Q: There are 7 girls in a bus. Each girl has 7 backpacks. In each backpack, there are 7 big cats. For every big cat, there are 7 little cats. How many legs are there in the bus?
Email your entry to your loan officer or to contests@perlmortgage.com.
May 30th: Thanks to everyone who entered our spring newsletter contest! The question and answer are listed here. Congratulations to our winner, Kristin Tortoriello! Kristin's name was picked from our official contest entry fish bowl. She chose a Chicago Bulls Bags game as her prize.