Eco-Friendly Interior Design

When you decorate your home, you may not think about "going green" in the process. But maybe you should. These days more Interior Designers say green designs not only look great, but just might make you FEEL great as well. Money Editor Stacy Johnson explains… (video runs 1:26)

Home Prices Drop in May

A government report says U.S. home prices fell 4.8% in May from the same month last year.

The Office of Federal Housing Enterprise Oversight also says prices, on a seasonally adjusted basis, fell 0.3% from April to May. The index is down almost 5% from its peak in April of last year.

OFHEO oversees the government-sponsored mortgage-finance companies Fannie Mae and Freddie Mac.

The index is calculated using mortgage loans of $417,000 or less.

Mortgage Points: Why Pay For Them?

If you are in the market for a home or considering refinancing your current mortgage, you probably have heard your mortgage professional talking about points. They may advise you to buy points or they may advise you not to, depending on your situation. The question is, do you really understand points and when it makes sense to buy points?

A point is 1% of the loan amount. So, one point on a $100,000 mortgage costs $1,000. Points can be purchased in increments down to an eight of a point. It's not any more complicated than that. When should you buy mortgage points?

The pros of doing this are really pretty easy to understand. By pre-paying your interest, you get a lower rate and therefore a lower payment for the life of your loan. The cons of buying points are that you must stay in the home for a certain period before you "break even" on the transaction.

For example, if you have a $200,000 mortgage and you buy two points, you will pay $4,000 for those points at closing. If buying the points lowers your payment $250 a month, you'll need to stay in your house at least 16 months to break even (16 × 250 = 4000). In this example, after 16 months you'll start making money. After several years, you'll save a lot of money.

One other thing to keep in mind about buying points up front: Points may be tax deductible, so there is an added benefit if you qualify for the tax deduction. Check with your tax advisor before you deduct points on your taxes.

If you have any questions or comments about points, just click the comment link below and sound off. We'll get back to you with answers to any questions you might have. We'd love to hear from you.

Biggest Water Wasters

Are you flushing water (and money) down the toilet every month? You may not think you're a water waster, but maybe you should find out:

Stacy Johnson has more in this short 1:31 video…

So how much water are you wasting every month? Any other ideas for saving water and/or electricity? Tell us about them… use the handy "comment" link below.

Selling Your House? Try Staging It

Staging a house can be the difference between its sitting or selling. Here are some findings and simple staging tips to help turn lookers into buyers at your next open house.

Studies have shown that staged homes sell quicker - sometimes up to 40% faster - than non-staged homes. Simply stated, staged homes sell faster for more money than those that aren't staged.

Three basic staging rules:

1. Entice buyers to enter. If people don't like what they see on the outside, they may not come in. Doors are the one exception to the neutral-color rule. Rich colors say "welcome" and "come inside." Some suggestions: red, black, charcoal and chocolate brown.
2. Curb appeal to sell a house. Curb appeal is 360 degrees around a house - and includes the neighbors and the neighborhood. Sellers should focus first on what they can control, especially landscaping outdoor spaces and lighting. Sadly, many sellers skip this obvious step and lose equity - and many prospective buyers - as a direct result.
3. Clobber the clutter. Go room by room and purge. Get rid of anything personal.

Hiring a professional home stager has great benefits to any seller. The seller doesn't have to spend every night and weekend trying to get the house ready for people to see. The seller can continue with their normal routine and have one less thing to worry about.

Consider this simple rule of thumb, the investment in staging your home will always be less than the first price reduction on your home if you don't stage it and it just sits on the market.