How to protect home from winter's fury

Start thinking about sealers, gutters, foundation vents

With fall's transition between the seasons comes a transition for your home as well. That roof and those four sturdy walls need to protect you from winter's fury, and there are several things you can do to help get ready.

1. Seal masonry surfaces: Apply a sealer to concrete driveways and walkways, brick patios and other exterior masonry. The sealer, available from paint stores and masonry supply retailers, prevents water from penetrating into cracks and crevices where it can freeze and cause serious damage.

2. Prepare your fireplace: Now is the time to get wood-burning appliances such as fireplaces and woodstoves ready for the season. Remove ash buildup; check screens and glass doors for damage; replace door gaskets as needed; and check doors, door latches, screen brackets, and other metal parts to be sure they are secure and operating properly. Check the condition of the exterior of the chimney or flue pipe, including the cap, and then clean the chimney to remove last season's accumulation of soot and creosote. Consider having a professional chimney sweep service clean and check everything at least every other year.

3. Prepare humidifiers: Winter is a dry time inside your home, and many people choose to use a
portable or central humidifier to put much-needed moisture back into the air. Now is the time to check your humidifier to make sure it's operating properly, that all necessary plates and filters are in place, and that the system is clean and the water supply is correct. Check your operating and maintenance instructions for more information.

4. Check the gutters: Check and clean gutters to remove leaf and pine needle debris, and check that the opening between the gutter and the downspout is unobstructed. Look for loose joints or other structural problems with the system, and repair them as needed using pop rivets. Use a gutter sealant to seal any connections where leaks may be occurring.

5. Change your furnace filters: Replace your old furnace filter with a new one. While you're at it, check the furnace for worn belts, lubrication needs or other servicing that might be required; refer to your owner's manual for specific suggestions, and follow any manufacturer safety instructions for shutting the power and fuel to the furnace before servicing.

6. Install a carbon monoxide detector: As we close up our houses for winter, the chances of carbon monoxide poisoning from malfunctioning gas appliances increases substantially. If you have a fireplace, water heater, or other appliance that is fueled by propane or natural gas, fall is an ideal time to install a carbon monoxide detector -- available from many home centers and retailers of heating system supplies. While you're at it, consider also having a professional heating contractor come out and inspect all of the fittings and components on your gas appliances.

7. Check smoke detectors: Fall is a great time to check the operation of your smoke detectors and to change batteries. You should also consider installing additional smoke detectors outside each bedroom.

8. Close off foundation vents: Depending on the winter climate in your area, you'll want to be thinking about closing off your foundation vents to help prevent pipe freezes. You can leave the foundation open for as many months as the weather remains mild, but close them off when the local forecasts begin calling for freezing temperatures. Once closed, you can leave them that way until it warms up again in the spring.

9. Check weatherstripping: Air leaks around doors and windows can rob your home of expensive heated air and create uncomfortable drafts that keep you feeling chilly. Check the weatherstripping around doors and windows, and replace any that are worn -- retailers who specialize in doors and windows can fix you up with the proper replacement type for your situation

Strategies to lower your mortgage interest rate

Interest rates on jumbo mortgages jumped about 3/4 percent in mid-August. Before settling for higher rates or giving up altogether, consider the following ways you might lower your financing costs.

Even though jumbos increased in price, conforming rates -- for mortgage amounts up to $417,000 -- decreased. On Aug. 20, for example, it was possible to find a 30-year fixed-rate conforming mortgage for 6.25 percent and one point. At the same time, jumbo mortgages over $417,000 were going for 7.25 percent and one point.

"Points" is a term lenders use for a mortgage origination fee that's paid by the borrower one time only at closing. One point equals 1 percent of the loan amount. By paying more points upfront, a borrower can lower the mortgage interest rate for the term of the loan.

Points are tax-deductible on purchase mortgages in the year of purchase for those borrowers who itemize deductions. Restrictions apply, so be sure to check with your tax advisor to see if paying points will lower your overall cost of financing. Usually, the longer you plan to keep paying on the mortgage, the more worthwhile it is to pay points for a lower rate.

HOUSE HUNTING TIP: Buyers who don't have the extra cash to pay points could ask the seller to pay points for them. Most lenders permit a seller to credit cash to buyers at closing for their nonrecurring closing costs. Points are a nonrecurring closing cost -- they are paid once at closing, unlike mortgage payments or homeowners insurance that is paid for on an ongoing basis.

Lenders have limits on how much a seller can credit a buyer. It's usually 3 to 6 percent of the purchase price. Before you write an offer, find out your lender's limit. Then ask the seller to credit you a dollar amount that falls within the lender's guidelines. This way you won't raise a red flag with the lender that could cause your loan to be denied.

Also be aware that appraisers are taking a hard look at seller credits to determine if they affect the market value of the property. If you inflate your offer price to cover the cost of points and this puts the price out of line with current market value, the lender could lower the appraised value. In this case, your mortgage amount might also be lowered, leaving you short on the funds you will need to close.

No one knows the future direction of interest rates. But, if you believe that interest rates will come down soon and that you'll refinance into a lower-interest-rate mortgage, you might be better off paying a higher rate now and no points.

Another way to reduce your mortgage interest rate on jumbo financing is to create a blended rate by combining a low-interest-rate conforming loan with a second mortgage. Secondary financing is available in amounts up to $500,000 for buyers with a 20 percent cash down payment, a good credit score (over 700 with some lenders) and verifiable income.

By combining a conforming $400,000 fixed-rate first mortgage at 6.25 percent with a fixed-rate $400,000 second mortgage at 7.4 percent, you end up with a blended rate of 6.8 percent. So, you create jumbo financing for under 7 percent in an over-7 percent first-mortgage market.
Most conventional second mortgages have payments that are amortized over 30 years, with a due date in 15 years. This means that there is a balloon payment when the loan is due, unless you pay the principal down substantially during the term of the loan.

THE CLOSING: Make sure that there is no prepayment penalty on the second mortgage so that you can make pay-downs or pay the loan off at any time without penalty.