Women Pay More for Home Loans, Study Finds

A new study by the Consumer Federation of America found that in 2005, about a third of women took out mortgages with interest rates over 7.66 percent (well above the average prime mortgage rate of 5.87 percent) compared with about a quarter of men.

The study, which examined 4.4 million mortgage originations throughout the country where borrowers identified by their gender, also found that women with high incomes were 46.4 percent more likely than men with comparable incomes to have the more expensive mortgages.

Although women earning below the area median income were 8 percent more likely to receive subprime loans than similarly earning men, women earning more than double the area median income were 50 more likely to receive subprime loans than men with similar earnings.

Critics say the research suggests that lenders are taking more than stated risk factors into consideration.

“The high levels of subprime lending among women compromise their ability to steadily accrue equity by paying off their mortgage – one of the easiest and most effective pathways to building wealth in America,” said Nancy Register, Associate Director of Consumer Federation of America and National Director of America Saves, a social marketing campaign to encourage lower- and moderate-income households to save and build wealth.

California Mortgage Bankers Association spokesman Dustin Hobbs defended the lending practices of the industry, stressing that Home Mortgage Disclosure Act data cannot explain everything. "It will show there is a disparity but not why there is a disparity," says Hobbs.

Source: Consumer Federation of America; Inside Bay Area, Eve Mitchell (12/08/06)

Low-Cost and No-Cost Ways to Save Energy

Did you know that the typical U.S. family spends more than $1,600 a year on home utility bills?

Unfortunately, a large portion of that energy is wasted. Electricity generated by fossil fuels for a single home puts more carbon dioxide into the air than two average cars. And as for the road, transportation accounts for 66% of all U.S. oil consumption. The good news is that there is a lot you can do to save energy and money at home and in your car.

- Set your thermostat comfortably low in the winter and comfortably high in the summer.

- Install a programmable thermostat that is compatible with your heating and cooling system.

- Use compact fluorescent light bulbs.

- Air dry dishes instead of using your dishwasher's drying cycle.

- Turn off your computer and monitor when not in use.

- Plug home electronics, such as TVs and DVD players, into power strips; turn the power strips off when the equipment is not in use, as TVs and DVDs in standby mode still use several watts of power.

- Lower the thermostat on your hot water heater to 120°F.

- Take short showers instead of baths.

- Wash only full loads of dishes and clothes.

- Drive sensibly. Aggressive driving (speeding, rapid acceleration and braking) wastes gasoline.

- Look for the ENERGY STAR® label on home appliances and products. ENERGY STAR products meet strict efficiency guidelines set by the U.S. Environmental Protection Agency and the U.S. Department of Energy.

10 Questions to Ask Before Hiring a Real Estate Agent

Before selecting an agent to list your home for sale, you should ask certain questions to ensure that the agent you do decide to choose will give you the best possible representation, place your interests above that of his/her own, have integrity and ethics, and work hard to market and sell your home. Here are 10 questions that you should ask before hiring a real estate agent.

1.) What sets you apart from other agents that will help sell my home?
2.) What's kind of reputation does your company have in this area (and others, if applicable)?
3.) How do you intend to market my home?
4.) Has your company ever sold homes in my area/city?
5.) Are you solely responsible for the advertising you do or does your company pay for and oversee all advertising?
6.) On average, how long do your listings remain on the market before finally selling?
7.) On average, what percentage of the list price do your listings actually sell fore, when your listings sell?
8.) Do you work with buyers and if so, how many are you currently working with?
9.) Do you have references?
10.) Can I terminate the listing early if I am unhappy with your performance? If so, what fees, if any, must I pay?

These questions, or any that are similar, will help you decide which agent will be suit your needs! Good luck!

Just Starting My Real Estate Blog

I just created my real estate blog and this is my first post. I know very little about blogging, but a lot about real estate. Over the next few days, I hope to learn more about blogging, so that my blog is informative and not some snooze-fest, like this first post. This is a big step for me, so bear with me over the next few weeks!