Should you refinance to a 15-year mortgage?
It sounds great, doesn’t it? Being able to pay off your mortgage in a fraction of the time by refinancing to a shorter-term loan. In just 15 years, you could own your home outright, build equity faster, and free up thousands of dollars you would otherwise be paying in interest over the course of a 30-year mortgage. The money you save on interest could go toward money for retirement, college, or even a wedding.
But can you afford it? Even though you might be able to afford the higher monthly payment, there are some other things to consider:
- Would you still have enough money left over to save each month? It’s recommended to keep at least six months’ worth of reserved funds in savings at all times. Would you be able to achieve this with a higher monthly mortgage payment?
- Will you go house poor? Think summer vacations, weekend getaways, dining out, shopping, improvements to your home, etc. All of these things you freely enjoy now might not come so easy if your mortgage payment is that much higher.
- Do you have enough job security and feel stable where you are for the next 15 years?
- In the event of an emergency, will you have funds in reserve to pay for unexpected expenses? Aside from the six-month reserve, will you have the extra money to cover unforeseen medical bills and car and house repairs?
The New York Times wrote an article on the topic with even more things to consider along with a link to a mortgage calculator. Even though rates for 15-year mortgages are great now, don’t rush into a decision until you weighed all your options.
Q&A with Perry: I am looking at buying a developer-owned lot, should I get a soil impaction test?
Here’s a question that was recently submitted through our website, along with my personal response. We appreciate your questions, comments, and interactions on our site. If there’s a question you have, I encourage you to ask me.
Question:
I am looking at buying a developer-owned lot to build a new home on. The lot is sloped and I will plan on building a half basement. I was talking to a builder three lots from mine and he said that he had to remove excess fill dirt to get to the sub grade to pour foundation. This was an extra cost to the homeowner. Does the developer have to disclose if a lot has been filled in with fill? If not, should I get a soil impaction test prior to buying the lot?
Answer:
Most developers will disclose any information they have concerning lots. However, the detailed construction drawings will show lots that are filled with soil and or debris. The construction drawings may not show rock formations and or subterranean soil problems that may require additional monies for building.
As an individual buying a lot, it is ALWAYS best to have a builder or his engineer inspect a lot before purchasing. They usually can inform you if the lot requires additional costs to build.
It is customary to do the additional requirements ie: rock removal, additional fill for poor soil conditions, hillside construction, etc. on a cost-plus basis, as it is usually more cost effective to the customer to do it that way verses having an engineer test, estimate rock removal and or fill, and then do the required work after he has included his fees. In some cases, an engineer’s report is required.
As a builder, we have purchased lots knowing there was fill on that lot and it would have to be removed for the building process, and we include an allowance or a fixed cost for that work, adding it to the cost of the structure. The same has been done with rock removal. However, we have built on a lot that had sub soil conditions that were not known by the developer or his sales team, and it was deemed the responsibility of the purchaser to either move on with the project or abandon plans. Because of already incurred costs, they moved on with the project.
Share on FacebookHBAL Golf Scramble Update
We had a great day at the Home Builders Association of Louisville’s annual golf scramble. Playing with me this year was Pete Nusz with Design Drafting, LLC, Buck, our superintendent, and Bryce Raley with The Content Squad.
Here’s a quick, fun video of us at the scramble. This is an annual event. We always announce upcoming scrambles and events on our blog, so be sure to follow along if you’re interested in participating next year.
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Custom sun room and deck in East Louisville
We’ve shared a couple of videos before on this project in Winchester Acres in east Louisville. The sun room is now complete and the homeowners have done a nice job with the finishing details.
The second video shows the deck we completed for the homeowners a while back. It’s a Trex product and nicely connects to the sun room.
We’re always excited and honored to work with repeat customers. If you have a custom building or remodeling question or are thinking about starting a project, contact us. We’d love to work with you on your next building or remodeling job.
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Custom home in Shakes Run is near completion
These three videos show the progression of a custom home we’re building in the Shakes Run subdivision in Louisville, KY. As you can see, the first video shows the crew preparing for the basement to be poured. Just a couple of weeks into the project, the framing is underway, and within three weeks, the house is framed, roofed, and ready for brick.
This project is wrapping up as we speak. We’ll be sure to post a video once everything is complete. The homeowner, Mike Menkhaus, is actually a repeat customer. We built a custom home for Mike a few years ago and are happy to be working with him again.
If you’re thinking about building a custom home in Louisville, contact me and check out my blog for more information about my business and the custom homes we’ve built in the past.
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Professional Builder’s 101 best new products for 2011
The building industry—much like any other industry—is constantly changing and improving. If you’re one to keep up with the latest trends in design, decor, and building products, then you probably should be aware of Professional Builder Magazine’s list of the best new products for 2011.
Each year, the editors of Professional Builder and Professional Remodeler check out the newest products, finishes, and systems for residential construction and come up with a list of 101 best new products, then lump them into categories such as outdoor living, kitchen and bath, structural, and more. Read more about how the editors choose the winners here.
Here are some of the products that caught our eye this year:
- Kohler’s ultra-lux Numi toilet
- Blanco Solon Compost System
- Sterling Lawson Air Massage bath
- Azek’s In-Deck Storage Kit
- Kolbe Folding Door Systems
View the entire list of winners by category and read more about each product. Want more information about building or remodeling? Then check out our website.
Custom home building for Homearama 2012
If you’re like me, visiting Homearama at Norton Commons this year already has me excited about next year. That’s because next year’s Homearama is at not one, but two locations: Shakes Run and Rock Springs. What’s even more exciting is that we plan to build a home at both of those locations. We’ve built several Homearama homes over the years and almost all have been contracts.
I know it’s a little early to be announcing plans for next year, but we wanted to give everyone a heads up, especially if you’ve been thinking about building a custom home in Louisville. Even though we’re planning to build homes for Homearama, we would love to have contracts in place for each of these.
There are several reasons why you should consider talking to us about your custom home needs and preferences. The quality, attention to detail, and uniqueness that goes into a Homearama house is unlike any other. You will still be able to make decisions regarding your home—rather than purchasing a spec house—and you’ll be in one of the more highly sought after neighborhoods in Louisville.
Homearama is always a fun time for the people in Louisville because they get to preview the latest styles in interior design along with some of the most high tech and environmentally friendly building techniques available today. If you’re thinking about building a custom home, contact us and we can discuss living in Shakes Run or Rock Springs.
We are looking forward to helping you build your dream home in the 2012 Homearama.
Customer testimonial from A Winning Smile Dental
This is a guest post written by Greg Witte with A Winning Smile Dental.
As many of you know by now, we at A Winning Smile Dental Center are very excited about our upcoming office expansion. I would like to say a few words about our contractor, Perry Lyons.
If you are in the market for a solid builder, you can’t go wrong with Perry. He has 28 years experience with all kinds of projects from homes to offices to remodeling. Perry is meticulous about his work and delivers the utmost in quality. On top of it all, he is a devout Christian who puts his beliefs into practice by treating others with gracious kindness. He never has a bad word to say—except when out on the golf course. I invite all of you to follow along on our website as we grow.
Consider Perry Lyons for your next building project. He can be reached at 502.244.0114 or through is website. You won’t be disappointed!
-Greg Witte
Share on FacebookHomearama Louisville Starts Saturday, July 16
If you live in Louisville, you probably know about Homearama. This event happens every year and this year it’s sure to be as exciting as ever. It’s being held at Norton Commons, a new, traditional community in Prospect.
This community is very unique, and the architecture of the homes here are unlike what you might see in many new subdivisions today. The styles are more traditional, with some even having a farmhouse feel. It’s definitely a unique neighborhood and if you can make it out, you won’t be disappointed. It’s expected to be one of the biggest and most exciting Homearama events Louisville has seen.
Here are some details to keep in mind:
- Twenty-one homes all on one street will be displayed, providing easy walking from home to home
- You’ll have access to the amenities that Norton Commons has to offer such as shops and restaurants
- It begins on Saturday, July 16 and runs through the end of the month
- The Home builders Association of Louisville is a sponsor and offers a link for a coupon on its website
- Ticket prices: $10 for adults, $15 for a two-day pass
- Hours: weekdays 5 p.m. to 9:30 p.m.,Saturdays 10 a.m. to 9:30 p.m., and Sundays 1 p.m. – 6 p.m.
- Directions: Exit Highway 22 (Brownsboro Road). Proceed approximately 1 mile to Highway 1694 (Old Brownsboro Road) and turn left. Norton Commons is approximately 0.6 miles on the left. Look for yellow Homearama signs.
Even if you aren’t looking to buy or build a custom home, you can still get great design ideas for your next remodeling project and have a chance to experience this one-of-a-kind community.
Keep us in mind if you plan on building or remodeling in the future.
Meeting the needs of the future buyer
As children, most of us heard it a thousand times. As parents, we probably even said it ourselves a time or two, especially when we wanted those chores to be completed: “Don’t put off until tomorrow what you can do today.” You may be wondering what that has to do with today’s home building. Well, I’ll tell you.
Home builders are being faced with tough decisions right now. We are being asked to make changes that meet the needs and challenges of tomorrow’s buyers. We need to be aware of what the market is demanding, and how the market is changing. Thus, “don’t put off until tomorrow what you can do today.”
It is well known in our industry that more than 87 percent of new home buyers (94 percent of buyers age 25-44) have visited a website more than 12 times before choosing the builder they are going to contact. It is important that we have good information for the buyer to review. It is also important to help educate buyers and give them as much information as possible to help them make an informed decision. That is why we blog, share articles and information on Twitter and Facebook, and keep our website up-to-date.
Today’s buyers are much different than yesterday’s, and ten years down the road future buyers will be even more different than now. We’re keeping up with how the market and its buyers are communicating so we can better communicate with them and hopefully gain their trust when they decide to build their custom home.
Check out our blog for an array of information-based topics about the housing industry, custom home building, Louisville neighborhoods, and more. If you can’t find a topic you’re looking for, let me know and I’ll do my best to address it.
