10 Home Repairs That Will Save You Money

Claire Bradley, Investopedia.com

Jul 7, 2010

Remodels are great, but can get pretty pricey. Not everyone has thousands to add value to their home - but what about those less glamorous repair projects on your to-do list? These simple and inexpensive maintenance items don't seem like they add to your home's value, but they're big money-savers in the long run.
 
 
1. Caulk
If you've lived in your house a few years, you probably noticed that the caulk along your sinks, countertops and bathtub is coming loose. These gaps may not seem like a big deal, but they can wreak havoc inside your walls. Moisture causes mold and even leaks - expensive repairs that can easily be prevented. A tube of kitchen and bath caulk costs just a few dollars, and you'll avoid expensive repairs.

  2. Insulate
The quickest way to save money on your energy bill is to insulate, yet so many of us overlook this simple home improvement project for its benefits. Sure, your walls are insulated, but what about your basement, your attic, and your garage? Just in case the energy cost savings aren't enticing enough for you, check with the IRS - there are current credits that allow you to deduct this energy-saving expense from your taxes.

  3. Change Filters
When was the last time you changed your furnace's air filters? It's an oft-overlooked chore, but one that keep your furnace running efficiently, and improves the air quality inside your home. Change your filters at least every three months to keep your furnace working efficiently for years to come.

  4. Install a Thermostat
Does your home have a programmable thermostat? If not, invest in one; it'll earn its money back in no time. By programming heating and cooling, you avoid paying to keep an empty house at a comfortable temperature. Manage the heat appropriately in winter to avoid burst water pipes; in summer, draw your curtains during the day to keep the house cool. Buy a programmable thermostat and you can save big on monthly bills.

  5. Fix Leaks
That leaky faucet or runny toilet is draining your water bill, and in most cases it's a cheap and quick fix. Replace the washer on your faucet, and while you're at it, consider installing a faucet aerator if yours doesn't already have one. Faucet aerators reduce water flow from your faucet to save on your water bill; check your home improvement store for this inexpensive fix.

  6. Install Dimmers
Dimmers aren't just for romance; they can save you big bucks on your energy bill. They're cheap and easy to install, so look for rooms that could use a little reduction in harsh lighting. While you're at it, replace your light bulbs with energy-efficient ones. They're big money savers.

  7. Clean Carpets
Clean your carpet lately? With proper care, carpets can last a long time and look great, but everyone needs to clean them sometime. You don't need to hire an expensive service either - if you can vacuum, you can clean your carpets by yourself. Rent a carpet cleaner at your local supermarket or big-box store for a modest fee. Make sure you vacuum thoroughly before cleaning, and pick a dry day so your carpet dries quickly. With regular cleaning your carpet can last a long time, saving you big bucks on new flooring.

  8. Clean Siding and Windows
Windows and siding get a beating in most climates. Wash your windows and siding with a simple hose and water first, and with a cleaning solution as needed; your home improvement store sells specialty products for just this kind of job. Rent a power washer for very dirty jobs. Keep an eye on cobwebs, wasp and bird nests to ensure your home's exterior stays in good shape. Touch up with paint as needed, and your house will look like new at little or no cost.

  9. Fight Pests
Those spiders and ants at your foundation, that mouse nest in your crawl space? Take care of it - pests can destroy a home in a hurry. Hire an exterminator, or for small pests, combat with pesticides. Even if you don't think you have a problem, inspect every part of the interior and exterior of your home regularly to avoid small pest problems getting out hand.

  10. Clean Ductwork
If your home is older, your ductwork likely has dust, grime, and other unwelcome residue inside. For big jobs, pay a professional; a simple cleaning can easily be done yourself. Simply remove the grates from your air vents, and clean the inside with your vacuum.

  The Bottom Line
The best way to invest in your home is to take good care of what's already there. With these simple repair jobs, you'll even save money - with just a little elbow grease as investment.

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Riskiest Cities For Homeowners

By Francesca Levy, Forbes.com

Jul 12, 2010

Many people who fall behind on their mortgages never catch up. In these markets, the problem is especially bad.

The foreclosure crisis is far from over, and new statistics show that in many cities it's bound to get worse before it gets better. In cities like Las Vegas, Nev.--where 10% of all home loans are 90 or more days delinquent--a new wave of foreclosures is likely to occur in coming months.

  Las Vegas ranks at the top of our list of Riskiest Cities for Homeowners, but it's not alone in its troubles. In hard-hit housing markets like Orlando, Fla., Riverside, Calif., and Memphis, Tenn., thousands of homeowners are risking foreclosure. Overall, 7% of all loans are at least 90 days delinquent in the 10 riskiest cities in America--considerably more than the 4.4% average delinquency rate across the country's 100 biggest metros.

In Depth: Riskiest Cities for Homeowners

To find the 10 riskiest cities for homeowners, we relied on Lender Processing Services (LPS), a Jacksonville, Fla.-based mortgage-industry service provider. They provided us with the percentage of borrowers who were three months or more late on their mortgage payments, as of May 31, in the 100 largest Metropolitan Statistical Areas in the U.S.

  In all but two of the 10 riskiest cities for homeowners--Orlando and Miami, Fla.--the percentage of homes in foreclosure is lower than that of homes with severely overdue loans. In part, that's because efforts by loan servicers and the federal government to modify loans have stemmed foreclosures for some homeowners. But the delinquency rate reveals just how many borrowers are in crisis, and signals more trouble to come.

  "Just think of it as a cascading waterfall," says Kyle Lundstedt, a senior managing director at LPS. "Just because there's not as much water in the pool at the bottom doesn't mean there's not a lot of water in the buckets at the top."

  Some at-risk homeowners will receive help from the government's Making Home Affordable program, or from lenders themselves, who will restructure the terms of their loans. A smaller percentage of those homes with mortgage modifications will avoid foreclosure altogether. But, according to LPS, more than half of the delinquent loans that are restructured end up in foreclosure a year later, meaning that many foreclosures are only getting pushed further into the future. Delinquency rates can offer another perspective on the shape of the foreclosure crisis.

Foreclosure capitals see trouble ahead

Many of the cities where the foreclosure risk is highest have familiar stories. In "sand state" cities--metros in Florida, California and Nevada--rising prices during the housing boom meant that when the bubble burst, homeowners were underwater, with little hope that home prices would ever return to their peak. In Las Vegas, Orlando and Miami, a combined 68,670 homeowners are behind on their loans by three months or more.

  In California a housing-fueled recession has caused a state budget crisis, which is reflected in our list. Six out of 10 of our riskiest cities are in the Golden State. But it's not just big cities where foreclosures are in danger of going up. Mid-sized metros like Riverside, Stockton, Modesto, Bakersfield and Vallejo saw dramatic run-ups in prices before the housing market peaked in 2006. Now those cities have severe delinquency rates between 9.7% and 8.6%.

  As housing prices shot up in big cities like Los Angeles and San Francisco, a rising number of homeowners sought cheaper homes in cities as far as an hour or two outside the city. That put upward pricing pressure on these "exurbs," but when the housing market collapsed, the cities couldn't sustain that demand.

  "A lot of these were extended commuter locations for the most expensive areas," says Lundstedt. "When prices dropped, those places were hard hit."

A bust with no bubble in Memphis

But it's not only in boom cities where homeowners are at risk. In Memphis, Tenn., 7.1% of all loans are three months overdue or more. Memphis never had the rampant overbuilding and subsequent excess inventory that pushed prices down dramatically in many sand state metros. What it does have is a 10.2% unemployment rate.

"It's not purely a house price story; there's a second story going on," says Lundstedt. "When you combine even moderate house price declines with significant unemployment, you get a double whammy that has significant consequences for the consumer."

  In most of our riskiest cities, the foreclosure rate is more modest than the delinquency rate. In part, that's thanks to loan "cures" that have helped struggling homeowners avoid delinquency. But in many cases it's a sign of a much more troubling reality. In some metros, foreclosures have slowed simply because a glut of foreclosures has clogged the system. That means inevitable foreclosures won't get flushed out of the market, allowing it to recover, any time soon.

  "There are lots of places where people are so deeply in trouble there's nothing we can do about them, but their numbers are so significant in certain locales that the system can't move them through," says Lundstedt. "The government process has become overwhelmed."

Top 5 Riskiest Cities For Homeowners

1. Las Vegas, Nev.
Number of loans 90 or more days delinquent: 33,985
Percent of loans 90 or more days delinquent: 9.86%
Number of homes in foreclosure: 29,991
Percent of homes in foreclosure: 8.70%

  2. Riverside, Calif.
Number of loans 90 or more days delinquent: 62,158
Percent of loans 90 or more days delinquent: 9.71%
Number of homes in foreclosure: 30,816
Percent of homes in foreclosure: 4.81%

  3. Stockton, Calif.
Number of loans 90 or more days delinquent: 8,853
Percent of loans 90 or more days delinquent: 9.40%
Number of homes in foreclosure: 4,459
Percent of homes in foreclosure: 4.73%

  4. Modesto, Calif.
Number of loans 90 or more days delinquent: 6,529
Percent of loans 90 or more days delinquent: 8.83%
Number of homes in foreclosure: 3,224
Percent of homes in foreclosure: 4.36%

  5. Bakersfield, Calif.
Number of loans 90 or more days delinquent: 9,011
Percent of loans 90 or more days delinquent: 8.55%
Number of homes in foreclosure: 3,987
Percent of homes in foreclosure: 3.78%

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