Freddie Mac (OTC: FMCC) recently released the results of its Primary Mortgage Market Survey® (PMMS®), showing average fixed mortgage rates hitting new all-time record lows for the second consecutive week as they followed bond yields lower. The 30-year fixed-rate mortgage has averaged below 4 percent all but one week since December 8, 2011, helping to keep homebuyer affordability high.

The 30-year fixed-rate mortgage (FRM) averaged 3.83 percent with an average 0.7 point for the week ending May 10, 2012, down from the last week when it averaged 3.84 percent. Last year at this time, the 30-year FRM averaged 4.63 percent.

Results showed that the 15-year FRM averaged 3.05 percent with an average 0.7 point, down from last week when it averaged 3.07 percent. A year ago at this time, the 15-year FRM averaged 3.82 percent.

The 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.81 percent this week, with an average 0.5 point, down from last week when it averaged 2.85 percent. A year ago, the 5-year ARM averaged 3.41 percent.

Additionally, the 1-year Treasury-indexed ARM averaged 2.73 percent this week with an average 0.5 point, up from last week when it averaged 2.70 percent. At this time last year, the 1-year ARM averaged 3.11 percent.

"Following April’s weaker than expected employment report, and the French and Greek election results raising concerns over the stability of the Euro currency zone, long-term Treasury bond yields declined allowing fixed mortgage rates to ease to new all-time record lows this week,” says Frank Nothaft, vice president and chief economist of Freddie Mac. “The economy added just 115,000 jobs, below the market consensus forecast and less than in March. And although the unemployment rate declined, it reflected fewer people actively seeking jobs."

For more information, visit www.FreddieMac.com.

Mike Spruell
Realtor®/Broker/ePRO
The Lake Norman Homes Team
Keller Williams Realty
www.LakeNormanRealEstate.pro
866-LakeNorman
704-907-7907

Since 1988, the Service Contract Industry Council (SCIC) has been the leading advocate on behalf of consumers and the home service contract industry, making sure that the legal environment for home service contracts (often referred to as home warranties) is consistent from state to state. "Consistency across all 50 states helps to regulate the industry and ensure customer satisfaction and protection," said Timothy J. Meenan, executive director for the SCIC.

The SCIC offers the following guidelines when purchasing a home service contract for your home this spring.

What is a home service contract?
The typical home service contract is a one-year contract that protects a homebuyer or current homeowner against the cost of unexpected repairs or replacement of major systems and appliances that breakdown due to normal usage or defects in materials or workmanship. A home service contract can:

• lessen the risk of costs and delays if a system, system component or appliance malfunctions during the selling process;
• help to resolve issues discovered during the home inspection stage;
• reduce any after-sale liability by a seller;
• add value and improve marketability of homes; and
• increase a buyer’s confidence in their home investment.

Who sells home service contracts?
Real estate professionals, builders and independent providers sell home service contracts. A home service contract can be purchased at any time, including at the time of purchase, and is usually transferable to a new owner, although a small transfer fee may apply.

What is the difference between a home service contract and homeowner’s insurance?

• Home service contracts typically cover the major systems in your home in the event of breakdown or malfunction including electrical, plumbing, heating and air conditioning systems, and built-in appliances such as ranges, washers and whirlpool baths.
• Homeowner’s insurance covers the structure of a home and personal belongings in case of a fire or natural disaster such as hurricanes and lightning, and provides liability coverage in case someone is injured on the property.
• Home service contracts are optional in real estate transactions.
• Homeowner’s insurance is almost always required, especially if the buyer has a mortgage.
• A home service contract is not a substitute for a homeowner’s insurance policy. A home service contract is a beneficial supplement to a homeowner’s insurance policy as homeowner’s policies generally do not cover items for breakdowns or malfunctions due to normal wear and tear or defects in materials or workmanship.

Do I need to be buying or selling a home to purchase a home service contract?
No. A home service contract provides valuable protection for current homeowners when a system or appliance fails.

Can I transfer my home service contract to the new buyer of my home?
Most home service contracts are transferable and may offer the option to allow the buyer to change or upgrade the service contract. A low-cost transfer fee may apply.

Can I customize the home service contract to meet the needs of my home?
Yes, but fees may apply. You may be able to purchase a home service contract that covers smaller appliances such as ceiling fans and built-in microwaves. Additional fees apply for coverage for private wells and septic systems.

How are contractors screened?
SCIC member companies typically put their contractors through a rigorous screening process that includes state license verification, detailed reference verification, and background checks.

How do I file a claim?
Homeowners are given a toll-free number to call. The home service contract company will verify your coverage and dispatch an independent contractor to assess the problem and replace or repair the item as necessary. A service fee, $50 on average, is charged per service visit.

What Can Cause a Denial of Payment?

• Improper maintenance
• Code violations
• Unusual wear and tear
• Improper installation
What is generally NOT covered?
• Outdoor items such as sprinklers
• Faucet repairs are not covered under all plans
• Garage door openers
• Spas or pools, unless specific coverage is requested
• Permit fees

What are the consumer’s responsibilities?
Home service contract coverage varies from state to state and from policy to policy so the consumer needs to:

• Request a copy of the contract before buying
• Read the provisions carefully and become thoroughly familiar with all coverage, limitations and exclusions
• Carefully fulfill all contract responsibilities, such as regular filter changes for your heating/air conditioning systems
• Keep the service contract paperwork, original receipt(s), and all maintenance records
• Research the service contract company

About the SCIC
The Service Contract Industry Council is a national trade association that has been instrumental in working with state legislators and regulators across the country to develop laws to protect consumers.

For more information, visit www.go-scic.com.

Mike Spruell
Realtor®/Broker/ePRO
The Lake Norman Homes Team
Keller Williams Realty
www.LakeNormanRealEstate.pro
866-LakeNorman
704-907-7907

April is National Home Inspection Month, and homeowners across the country are learning about the benefits of having a home inspection—an important step in the home buying and selling process. Whether your home is on the market or you simply want to maintain its condition, enlist the help of a trustworthy home inspector to ensure that your current or potential home is in optimal condition. 

When buying a home, a home inspection determines its structural and mechanical condition. If there are any problems, your inspector will make them known and estimate costs for repair. You can then determine if the cost of dealing with these issues is worth the listed price of the home or if more negotiation is required. 

If you are selling your home, a potential buyer is likely to enlist a home inspector, but you can arrange your own home inspection to prepare. They will help you identify any issues that need fixing, so that you can present your home as structurally and mechanically sound home. 

Even if you’re not in the process of buying or selling, home inspection is important to the upkeep of your property. Prevention is more affordable than treatment—and a home inspector will help you identify issues before they become a serious problem. For example, a home inspector could identify a hole in your roof; left untreated, you may need an expensive new roof, but caught by a home inspector, you may only require an inexpensive patching service. 

A home inspector will examine your home for structural and safety issues. They will determine if your foundation has been damaged by renovations or termites, and verify the condition of support beams. They will also check for safety hazards, including rotting steps, loose railings, and faulty locks.
Your home inspector also knows to look for problems with wiring and electrical boxes, as well as plumbing issues. Water damage can be a deal-breaker in the sale of many homes, and a home inspection can identify potentially costly leaks. 

Source: AmeriSpec®

Mike Spruell
Realtor®/Broker/ePRO
The Lake Norman Homes Team
Keller Williams Realty
www.LakeNormanRealEstate.pro
866-LakeNorman
704-907-7907