How To Erase Furniture Scratches With A Walnut

Over time, wooden furniture shows signs of age. Wear-and-tear from everyday use can lead to dings and scratches that are both distressing, and unsightly. But before you bring your piece to a specialist for repair, you can try the much-less-expensive, do-it-yourself route.

In this 50-second video from HowCast, you'll learn how to use a walnut and a soft cloth to "erase" scratches from furniture:

1. Remove the nut from its shell
2. Rub the nut on the scratch
3. Wait 3 minutes
4. Buff the area with a soft cloth

The repair works by allowing the nut's natural oils to soak into the wood, which reduces the "white" appearance of a scratch. Other nutes work, too, including almonds and pecans. Or, you can opt for a professional product like what's offered at Amazon.com.

Anything deeper than a surface scratch, however, and you'll want a specialist involved.

Why Builder Confidence Surveys Matter To Buyers Of New Homes

Home builder confidence is holding firm this month, according to the National Association of Home Builders.

The group's monthly Housing Market Index survey posted 16 for December. That's the same value as from November. It's also equal to this 2010's average HMI reading.

HMI is scored on a scale of 1-100, and is a composite of 3 separate home builder surveys measuring single-family sales; projected single-family sales over the next six months; and prospective buyer foot traffic.

The results of the 3 surveys were as follows:

• Single-Family Sales : 16 (unchanged from November)
• Projected Single-Family Sales : 25 (unchanged from November)
• Prospective Buyer Foot Traffic : 11 (from 12 in November)

Values of 50 or better indicate favorable conditions for home builders. Values below 50 indicate unfavorable conditions.

In other words, although improving, conditions for home builders remain less from excellent. Home buyers in Brooklyn, NY can use this to their advantage. When builders feel pressure from the market, they're more likely to offer discounts.

On the other hand, job growth is returning, the economy is expanding, and mortgage rates are rising. These 3 factors are thought to boost housing markets. So, despite an unfavorable HMI reading, home builders might still be less willing to "make a deal"; holding out for a better 2011.

November's strong Housing Starts data supports that line of thinking.

If you're buying a newly-built home in the Bedford Stuyvessant area , or expect to buy sometime in 2011, keep an eye on home builder sentiment surveys. The better the builders feel, the more you may be asked to pay to buy your next home.

Simple Real Estate Definitions : Loan-Level Pricing Adjustments

Loan-level pricing adjustments are mandatory loan fees based on a borrower's specific default risk.

First introduced in 2008, LLPAs were Fannie Mae's and Freddie Mac's logical response to massive balance sheet losses. At the time, the housing market was deteriorating and mortgage delinquencies were rising.

To "better align with loan risk characteristics", the two entities created specific fees to be associated to specific loan traits, to be charged to all borrowers.

LLPAs are still in existence today.

Today's loan-level pricing adjustments can be grouped into 5 basic categories. Application exhibiting any of the 5 traits can trigger LLPAs, adding to a borrower's loan fees:

1. Credit Score (i.e. the borrower's FICO is below 740)
2. Property Type (i.e. the subject property is multi-unit)
3. Occupancy (i.e. the subject property is an investment home)
4. Structure (i.e. there is a subordinate/junior lien on title)
5. Equity (i.e. mortgage insurance is required by the lender)

In many respects, loan-level pricing adjustment are similar to auto insurance. All things equal, the driver of a "fast" car will pay higher costs than the driver of a "safe" car.  The same is true for mortgages.

Loan-level pricing adjustments are public information. Fannie Mae publishes the complete LLPA matrix on its website. The chart can be confusing, however. If you have questions about how LLPAs work, talk with your loan officer.

A Simple Explanation Of The Federal Reserve Statement (December 14, 2010 Edition)

Today, the Federal Open Market Committee voted 9-to-1 to leave the Fed Funds Rate unchanged within in its target range of 0.000-0.250 percent.

In its press release, the FOMC noted that since November's meeting, the "economic recovery is continuing", but at a pace deemed too slow to make a material impact on unemployment rates. It also said that household spending in increasing, but remains constrained by joblessness, tight credit and lower housing wealth.

In addition, the Fed used its press release to re-affirm its plan to keep the Fed Funds Rate near zero percent "for an extended period" while also opting to keep its $600 billion bond market support package in place.

And lastly, of particular interest to home buyers and mortgage rate shoppers, the FOMC statement devoted an entire paragraph to the Federal Reserve's dual mandate of keeping inflation and employment at acceptable levels.

The Fed acknowledges making progress toward this goal, but calls it "disappointingly slow". Currently, inflation is too low for what the Fed deems acceptable, and unemployment is too high. 

Over time, the Fed expects both measurements to improve.

Mortgage market reaction to the FOMC statement has been negative thus far. Mortgage rates in Brooklyn, NY are unchanged post-FOMC, but appear poised to worsen.

The FOMC's next scheduled meeting is a 2-day affair, January 25-26, 2011. It's the first scheduled meeting of 2011.

Make A Mortgage Rate Strategy Ahead Of Today's Fed Meeting

The Federal Open Market Committee holds a one-day meeting today, its 8th scheduled meeting of the year and 10th overall.

The FOMC is part of the Federal Reserve, the government group that sets U.S. monetary policy. The Fed's primary policy-setting tool is an interest rate known as the Fed Funds Rate.  The Fed Funds Rate is the interest rate at which banks borrow money from each other. 

2 years ago Thursday, in an effort to jump-start the economy, the FOMC met and voted to lower the Fed Funds Rate to as close to zero percent as possible without actually going to zero percent; the benchmark rate was prescribed to a range of 0.000-0.250 percent.

The Fed Funds Rate had never been set so low before, but ever since, it's been held to that range. It will likely be there until early-2011, too, but that doesn't mean that mortgage rates won't change today when the Fed adjourns today.

Because the Fed Funds Rate has been so low for so long, businesses and consumers have been able to borrow money cheaply. As a result, both capital and household spending have been on the rise lately, creating tailwinds for the economy.

The Fed is expected to acknowledge this today which, in turn, should lead mortgage rates higher.  This is because, in the current recovery cycle and until markets find balance, what's good for the economy tends to be bad for rates in Brooklyn, NY.

The Fed's press release today will be a focal point for markets.  Talk of higher-than-expected inflation or better-than-expected growth, and mortgage rates should rise. Talk of a slowdown should lead rates lower.

Either way, we can't be certain what the Fed will say -- or do -- this afternoon. If you're floating a mortgage rate, the safe move is to lock before 2:15 PM ET today.

Rankings : America's Best Places To Raise A Family (2010)

BusinessWeek recently released its America's Best Place to Raise a Family list. Chicago suburb Tinley Park, Illinois, topped the list.

2010 marks the second straight year that a Chicago suburb took top honors. Last year's winner was Mount Prospect, Illinois.

The BusinessWeek survey uses data from Onboard Informatics, compiling statistics in areas including education, crime, and access to parks, jobs and affordable homes.  Selections are limited to towns with 45,000 residents or fewer, and a median income of between $40,000 and $125,000.

One winner and 2 runner-ups are named for each state; the 10 most populous of which are listed below:

1. California : Arcadia (Monterey Park, Diamond Bar)
2. Texas : San Marcos (San Antonio, Houston)
3. New York : Tonawanda (Irondequoit, Cheektowaga)
4. Florida : Pembroke Pines (Sunrise, Tamarac)
5. Illinois : Tinley Park (Arlington Heights, Schaumburg)
6. Pennsylvania : Scranton (Erie, Allentown)
7. Ohio : Lakewood (Parma, Strongsville)
8. Michigan : Ann Arbor (Royal Oak, Portage)
9. Georgia : Warner Robins (Valdosta, Roswell)
10. North Carolina : Chapel Hill (Cary, Jacksonville)

Rankings like this BusinessWeek report can be useful for home buyers, but like all of real estate, it's important to remember that statistics don't apply to all parts of town equally. Some parts will have better schools, or better crime prevention, or more amenities.

Therefore, before you make a buying decision, talk with a real estate agent who has local market knowledge. It's the most reliable way to get data that matters.

Fannie Mae Guidelines Change Monday. Apply Today To Lock In To "Old" Rules.

Fannie Mae rolls out new mortgage guidelines Monday. Therefore, if you're in the process of applying for a conforming home loan, consider giving your complete application by the close of business Friday.

All Fannie Mae applications taken on, or after, December 13, 2010, are subject to the changes.

As compared to mortgage guidelines updates of the last 3 years, Monday's roll-out is relatively small. There is no change to the maximum debt-to-income ratio, for example; nor is there an increase in the minimum FICO score requirement.

Most mortgage applicants in Brooklyn, NY and nationwide will be unaffected.

Others, however, will find getting approved to be more difficult.

The most major change is with respect to revolving and installment debt. This category includes credit cards, charge cards, and student loans, among others. Going forward:

1. Debt with fewer than 10 payments remaining must now be included in an applicant's monthly obligations.
2. Debt not reporting a monthly payment must be assigned a payment equal to 5% of the outstanding credit balance.

These edits will raise applicants' debt-to-income ratios, and may push some of them beyond the maximum allowable limits, resulting in a denial. People with relatively large car payments are especially susceptible.

Another change relates to receiving gift funds for a purchase. Unlike debt calculations, though, the "gifting" process is getting easier.

Under the new Fannie Mae guidelines, buyers of owner-occupied, 1-unit properties (i.e. single-family homes, condos, townhomes) can forgo Fannie Mae's customary, minimum 5% downpayment contribution from personal funds. Downpayments can be comprised 100 percent of gifted and/or granted monies.

Buyers of second or investment homes, or multi-unit properties must still make a 5% downpayment from their own funds.

And, lastly, Fannie Mae is easing some of its documentation requirements. Salaried applicants from whom commissions and/or bonuses paid account for less than 25% of annual income will have fewer paystubs to produce for underwriting.

Fannie Mae's complete guideline changes are available online at http://efanniemae.com.