Home equity loans can put you well into the black, financially speaking, provided you don’t use the lending strategy as a stepping stone to even more debt.

Home equity money is yours to use as you wish, but most home owners focus on several economic priorities when they cash in on home equity loans.

1. Transform many bills into one: Debt consolidation is by far how most home owners use home equity loans. It can also be the riskiest way to use the home equity loans.

If you’ve racked up bank credit card debt, retail credit debt and other debts, home equity loans can pay them all off leaving you with one monthly bill that’s likely smaller than the others combined. It’s also a good chance the interest rate will be half what you were paying on just one credit card. The rate on home equity loans is cheaper because, unlike credit cards, the debt is secured by your home. Additional debt-cost savings are available because with the consolidation you’ll likely pay off your debt sooner. Along the way you’ll get to deduct the interest, up to the legal limits allowed for home equity loans.

Aside from the savings of home equity loans, a single monthly bill can also improve your cash flow, leaving you with more disposable income to save or invest. And over time, the single monthly payment also improves your credit profile, revealing to lenders that you are a less risky borrower who isn’t over burdened by debt.

However, the need for home equity loans could indicate a credit habit the home equity fix might only exacerbate. Homeowners should consider how to prevent themselves from scoring more credit before securing home equity loans.

Don’t just pay off your old debts, cut up all but one card for emergencies and consider debt counseling to learn how to budget your income.

Be sure to write a letter to your creditors telling them to close your accounts so you can’t get at them and your credit report doesn’t show you’ve got unused credit you can still tap.

If there’s a difference between what you were paying each month on all your debts and the home equity loan’s payment, save it and learn to use cash where possible.

Do not take on additional debt while the home equity loan is still outstanding.

2. Put the home equity money back: Almost as common as debt consolidations are home equity loans used for home improvements. With carefully planned and professionally completed work, homeowners effectively put home equity loans back into the home by adding more square footage, by bringing the home up to current building codes and by upgrading to contemporary home design and features.

Problems here stem not so much from using home equity loans for home improvements, but the decisions you make about the improvements.

The best improvements from home equity loans increase the fair market value of your house. Remodeled rooms, notably kitchens and bathrooms, add the most value. Additions are fine too as long as you don’t over improve. Additions should blend in both with your home’s existing style and the design of the homes in your neighborhood. Interior painting, carpeting and the like probably won’t add much value, but those cosmetic touches will improve the scalability of your home.

Keep in mind, however, that lenders aware that your home is on the market may not give you an home equity loan, without additional costs. And if you have an equity loan when you sell your home you have to gross enough to pay off both the first mortgage and any outstanding home equity loans.

3. Invest home equity funds in your kids: Using home equity loans for education is another popular choice, what with the skyrocketing costs of post-secondary education and higher incomes that don’t qualify for special grants and government-backed loans.

Home equity loans used to pay for education are investments of sorts too. An educated son or daughter is more likely to be financially independent sooner and building his or her own wealth rather than draining yours.

Unfortunately, college for your kids comes just about that time when you are nearing retirement and may consider home equity loans to offset your reduced income. Don’t over look special educational loans, tax write offs and scholarships to meet your children’s educational needs.

4. Disposable goods and services: No matter what you do with your home equity money you can deduct the interest and that’s a compelling reason to use the home equity loans to buy those big-ticket items you’ve always wanted, a new car, boat, recreational vehicle. Home equity loans are also a godsend if you are hit with big medical bills or some other emergency.

Don’t forget, when the car is ready for a trade-in, the recreational vehicle is up on blocks and you are fit and healthy again, you may still have equity loan payments to make. Your home is on the line.

A home is arguably one of the largest financial investments a person will make in their lifetime. While property values over time are determined by national variables, the economy and local market conditions, the care and upkeep of a property is also a crucial element toward achieving a solid re-sell. Whether you are planning on adding more rooms to create extra space, upgrading your kitchen with new appliances or are thinking of putting your home on the market, Coldwell Banker Real Estate Corporation offers some essential home improvement tips that might increase the value of your home.

Kitchen Makeover: Out of all the rooms in the house, the kitchen is the most popular to remodel. According to Remodeling Magazine, money spent to upgrade a kitchen produces the highest return on investment. “Hot” kitchen makeover trends include adding dual sinks, cooking stations, extra-long dishwashers, under-cabinet lighting, warming ovens and wine coolers.

Bathroom Fixer-Upper: Upgrading a bathroom is also a sound choice and will usually provide a significant return on investment. Large bathrooms are typically on the top of the list of priorities for those seeking to purchase a home. Adding skylights, glass block windows, ceiling fans and sunken whirlpool baths are also attractive selling features. If you don’t have the room to expand or to accommodate larger appliances, or you don’t think you’ll be living in your home long enough to enjoy the changes and/or see a return on this kind of investment, stick with neutral, mid-builder level updated cabinetry, refreshed flooring and shower/tub, or a new sink and toilet.

Room to Grow: Adding a room or two, such as a spare bedroom or a study, is a significant home improvement that you will be able to take advantage of every day. In addition to the much-needed extra space, it can also potentially provide you with a good return on your investment when it comes to selling the property.

Landscaping the Lot: A professionally landscaped yard can certainly increase the “curb appeal” or desirability of a home. In fact, beautifying your lawn can be one of the most inexpensive home improvements. Additional simple landscaping projects include trimming and edging the grass, manicuring the trees and shrubs to open up the view of the house, removing any dead plants and planting flowers to brighten up the yard. Click here to view a video on backyard redesign.

Repair Jobs: While many homeowners may want to update and remodel their kitchen, if the roof needs fixing or the chimney has to be reappointed, then they should prioritize these necessary repairs over any cosmetic changes. This applies to both sellers and those who plan to stay in the home for years to come, as these essential repairs must be taken care of before they cause the house to lose value. It is vital to look after the minor problems such as a leaky faucet or a loose cabinet to ensure that your house doesn’t undergo any long-term damage. As soon as you notice a problem, fix it since this will help avoid a larger expense later on.

Cosmetic Touch-Ups: A paint job, new double-paned windows and new carpeting will increase the price of a house virtually dollar-for-dollar. Neutral colored paint and eliminating clutter can make a world of difference. However, don’t go overboard with home improvement projects that will push a house too much above the current average value of homes in your neighborhood. It is important to make sure that your home has standards that are in-line with the other houses in the neighborhood, but you do not want to price yourself out of the market.

Home Improvement Professionals For Hire: Whether you need an architect, gardener, interior designer or contractor, it is always important to do a background check prior to hiring a professional. Get references from family or friends and interview them - checking is critical. The most important quality to look for is trust, not initial price. Dan Burgeson’s local partners is a great place to search for your next project.

Funding Options: Coldwell Banker Mortgage recommends a number of options for homeowners looking to upgrade their homes, including a cash-out refinance, a home equity line of credit or a second mortgage.

Although home appreciation has leveled off in some markets, sellers can still get good prices for their homes. The sale may take a bit longer, but a little creativity can help sellers move homes without having to drop the price.

The professionals at Coldwell Banker Real Estate Corporation offer the following suggestions for sellers who want to speed the process:

Price Your Home According to the Current Market. Just because a house comparable to yours sold for a very high price last year does not mean you will be able to realize the same price when selling your home now. Work with a full-service real estate professional to determine the appropriate, competitive listing price for your home. Remember that in this market, your sales associate may encourage a list price in accordance with others currently on the market, rather than those previously sold. Visit the Home Price Estimatorto get a sense of comparative sales prior to meeting with your sales associate.

Be Thankful for Appreciation. While price appreciation has slowed in some markets in 2006, it is important to look realistically at the financial gains you have made over the years you have owned your home. According to the National Association of REALTORS®, over the last six years the median sales price of a single-family existing home in the U.S. appreciated 7.6 percent annually.

Make Your Home More Marketable. When a buyer sees your house for the first time, a critical first impression is made. If applicable, maximize curb appeal by trimming trees and planting flowers. A fresh exterior coat of paint might also prove valuable. Consider neutral colors for interior walls and carpets. Dark colors on walls, along with unnecessary clutter, make rooms look smaller. To see videos on making your home more marketable, click here.

Conduct a Full Home Inspection. If repairs are required, it is a good idea to go ahead and fix the problems. Potential buyers will cast an extremely critical eye over your home and, in a situation when more houses are available on the market, they may take a pass on a home that needs too many repairs. Be sure to have the home inspection report available for prospective buyers itemizing all of the repairs that have been made and the associated cost for each.

Offer a “Seller’s Contribution.” A seller can sweeten the deal by offering assistance to the buyer in ways that do not require lowering the asking price. These tactics can help your home to stand out from the crowd. For example:

• Offer to buy down the interest rate on the buyer’s mortgage.
• Offer to pay a portion of the closing costs.
• Cover the buyer’s mortgage payments for up to the first six months. Depending upon the size of the mortgage, the buyer can save several thousand dollars and the seller still gets the original asking price for the home. It is generally more financially advantageous to do this than dropping the asking price by $30-, $20- or even just $10,000.
• Many condos and houses across the country belong to homeowners’ associations that require annual dues. Paying the first year’s fees could be a big incentive to a buyer nearing the limit of his or her liquid assets.
• Offer to pay off a buyer’s bills. According to Realty Times, some loan programs allow sellers to pay off the credit card debt or auto loans of the buyer which will help him or her qualify for a better mortgage and prevent the need to buy a smaller, less expensive house.

Don’t Worry. Properly priced homes that stand out from the competition are selling and demand for homes is still at historical highs. Speak to your Coldwell Banker® sales associate to find out how long an appropriately priced home is expected to remain on the market in your area.

The purchase of a home is one of the biggest investments people will make in their lifetimes. But it is also among the greatest sources of anxiety. A home inspection helps ensure homebuyers of the quality of their investment by making them aware of its condition and alerting them to any concerns. This can serve to relieve stress, increase confidence and even reduce the threat of legal action in the future.

Some of the benefits of a home inspection are:

Knowledge: Understanding exactly what you’re buying - old or new

Peace of mind: Helps in making a sound buying decision

Savings: The home inspection reveals the need for repairs or replacements before you buy

Fewer surprises: The home inspection limits the number of problems you may discover after you move in

Education: A good home inspection also gives you invaluable details about your new home in addition to information about the condition of the property. You’ll learn where the main shutoff valves to the utilities are located, how the house operates and more!

How do I find a good home inspector?

Not all inspection companies are alike, and selecting the wrong company could cost you thousands of dollars in repair and replacement costs. Consider the following when shopping for home inspection companies.

Experience: How much experience do the inspectors have and how long have they have been in the business? The best home inspectors have been in business for years and have seen thousands of homes.

Home Inspection Training: Have the inspectors gone through any extensive home inspection training? In many states inspectors can simply call themselves home inspectors without any training or licensing.

Association Membership: Is the inspector a member of a professional home inspection organization? Companies that are affiliated with professional organizations are serious about what they do, and know about all the new developments in their fields. Some well-known trade associations are: American Society of Home Inspectors (ASHI) and National Association of Home Inspectors (NAHI). Inspectors in your area can be located through these associations.

Liability Insurance: Does the inspector carry Professional Liability Insurance (Errors and Omissions Insurance)? If you ever need to collect on a legal judgment, an inspector without insurance my not be able to pay your claim.

What if I’m buying a newly constructed home?

An inspection on a new home is important for the buyer to level the playing field. As in any industry there are shortcuts and tricks of the trade in the construction business, and someone who is unfamiliar with them can easily miss them. A home inspector is better able to see nuances that may not be readily visible to an untrained eye. You also need an inspector to offset the builder’s or contractor’s interest. Much of the information about homes is either taken for granted by people, or remains unfound.

For newly constructed homes, an inspection of the house before the drywall is installed, otherwise known as a “preclosure inspection”, provides a level of quality assurance for the buyer that many builders don’t usually provide for their contractors. This inspection gives you a better chance of identifying and correcting potential problems when they are much easier and less expensive to fix, before they become physically or financially prohibitive. For example, this inspection may prevent the need for moving a wall so that kitchen cabinets don’t protrude into a doorway opening, or moving electrical receptacles so they are placed where you need them

You don’t think about future maintenance costs when buying a home, but you should. Whether buying an older home or a newly constructed home, equipment can be faulty and costly to repair.

Usually a home’s purchase price can be used to project maintenance costs. The recommendations for annual maintenance costs range from 1.5 to 4 percent of the home’s original cost. While this is not always true, especially when the purchase price of a home is three-quarters of a million dollars, it is a good rule of thumb for the average home buyer.

Since most home buyers are focusing on making the down payment and not saving for future repairs, a home warranty provides a good back-up plan.

Most home warranties cost between $300-$400 and will cover many major home systems and built-in appliances for one full year after close. A home warranty will either pay to repair or replace a covered item and the homeowner pays a minimal deductible rather than the full cost of repairs. It’s an easy way to manage your home’s finances and plan for those unexpected repairs.

When is the best time to buy a house? With many markets reporting an abundance of homes for sale, and interest rates remaining at near historic lows, now might be one of the best times in recent memory. While today’s real estate market does offer advantages to buyers, consumers still need to be savvy in order to get the best deal they can.

Following are some things that the professionals at Coldwell Banker Real Estate Corporation think every home buyer should keep in mind:

Don’t Try to Time the Market. When home prices are lower, it is very tempting for potential buyers to try to wait as long as possible in the hopes that prices will decline even further. This strategy can be detrimental because when there is high inventory, smart sellers price their homes properly – not according to past sales but according to current conditions – so their homes will sell in a timely fashion. Once a home is priced to what the current market will bear, buyers will make offers.

Shop Around. But Don’t Wait Too Long. The National Association of REALTORS reports that, on average, homes stay on the market for 7.5 months. The increased inventory gives home buyers a great opportunity to compare homes that meet their needs. However, this does not mean that home buyers should procrastinate. If you find a house you love, put in your bid and negotiate. Don’t provide an opportunity for another buyer to make an offer.

Watch Mortgage Rates. Studies such as the 2006 Coldwell Banker® Homeownership in America Index revealed that that majority of people move based on lifestyle changes such as new job, marriage, divorce or family expansion. Pay attention to the mortgage rates and recognize that buying a new house will likely result in a change in mortgage rates. How much? A monthly payment of a 30-year fixed 5.875 mortgage rate on a 300,000 loan is $1,774.61. The monthly payment at today’s 6.381 rate is $1,872.79, representing a $98.18 increase.

Negotiate on the Incentives. Sellers eager to move their homes may offer you a variety of incentives such as cars, trips, and even credit card bill payment. If you accept an incentive, make sure it makes sense for you. Instead of having your bills paid, you may opt to have the seller renovate the master bathroom or install new flooring. Of course, you can always ask the seller to simply deduct the amount in question from the list price.

Fixed-Rate vs. Adjustable-Rate
By Motley Fool Staff

Fixed-rate and adjustable-rate mortgages are the two main types of mortgages of the home-lending world. Let’s take a look at the differences.
A fixed-rate mortgage is very straightforward. The borrower knows from the beginning what the interest rate will be for the entire duration of the mortgage, and the monthly payments due are likewise fixed. Simple.

Slightly less simple is the adjustable-rate mortgage, or ARM. It changes from year to year, to reflect the interest rate environment. If rates are plummeting, your rate will also drop — and vice versa. ARMs typically have an extra-low “teaser rate” for the first year, as well as an upper limit, or cap. The amount that an ARM can rise each year is also limited, so that it won’t rise too quickly.

Fixed-rate mortgages are good because they come with no surprises. But for this benefit, you’ll likely pay a slightly higher rate than you would with an ARM. Fixed-rate mortgages are good for people who enjoy stability. They’re also especially attractive during periods when interest rates are low, such as they have been in recent years. At such times, fixed-rate mortgages permit you to lock in low rates for many years to come.

Conversely, if the prevailing interest rates are very high and you think rates are more likely to fall than rise, an ARM might make more sense. In addition, since ARM rates are typically slightly lower than fixed rates, they permit people to borrow a little bit more, and the difference can help you buy a slightly spiffier house. ARMs are often recommended for those who will be in a house for only a few years, since the rate is not likely to change too much in that time. Beware, though — don’t enter into an ARM unless you’re sure you’ll be able to handle the worst-case scenario if your rate quickly rises to the cap.

If you’re looking to buy or sell a home, educate yourself before you get too far into the process. You can do so in Dan Burgeson’s Buyers and Sellers section.

As part of the state’s 1999-2001 biennial budget, a few controversial changes were made to the use-value program, which assesses farmland based upon its use for agricultural purposes rather than its fair market value. The objective of the use-value law is to allow farmers to continue farming their land without being forced to sell it due to increased taxes. Because communities, in theory, will have to increase property taxes on non-agricultural land to make up for the loss in revenue that would have been generated by taxing farmland at its fair market value, the use-value assessment system represents a tax subsidy to owners of agricultural land or a tax shift to owners of non-agricultural land.

To make sure that the tax subsidy will be used to keep the land in agricultural production, a penalty was created as a means to discourage land speculation and recoup some of the subsidy paid by owners of non-agricultural property. Under the penalty, any person who changes the use of the land to a non-agricultural use will be assessed a penalty equal to the difference between the property taxes that would have been levied on the land if the land had been assessed at fair market value and the property taxes levied on the land for the last two years that the land had been valued under the use-value system. Because this penalty can be substantial and have an impact on someone’s decision to purchase the land or the price they are willing to pay for it, sellers are required to disclose to prospective buyers that the land is assessed under the use-value system.

From a policy perspective, the penalty presents an interesting dilemma for the WRA. On one hand, the penalty increases the costs, so it serves as a deterrent to new development by increasing the costs of land acquisition. On the other hand, it seeks to lessen the tax burden on other property owners who are essentially paying a subsidy to farmers to keep the land in agricultural production. As evidenced by competing policies, the penalty provision has huge political ramifications due to its impacts on farmers, developers, local units of government, school districts, environmental groups, and property owners.

With over 15,000 inland lakes, 50,000 miles of rivers and streams, and 1000 miles of Great Lakes shoreline, water plays a key role in shaping the physical and cultural identity of Wisconsin. Boasting of quiet trout streams, wild rivers and streams, and inland lakes and wetlands created by ice-age glaciers, Wisconsin is blessed with a tremendous number and variety of water resources. Providing a necessary source of food and transportation, these water resources played a key role in the settlement of Wisconsin by Native American tribes and early settlers. Today, our water resources continue to play a vital role to local economies, natural habitats, and recreational activities.

Minimum Statewide Shoreland Zoning Standards
Shoreland zoning attempts to protect our water resources by regulating the activities on land adjacent to our waterways. Wisconsin law (Section 59.692, Wisconsin Statutes) requires counties to adopt and enforce zoning ordinances that meet or exceed the following minimum standards in unincorporated areas. Thirty counties have chosen to update their standards to make them more protective.

1. Lot size

In summary, s. NR115.05(3)(a) provides:

Sewered lots must have a minimum average width of 65 feet and a minimum area of 10,000 square feet.
Septic tank lots (i.e., lots not served by a public sanitary sewer) must have a minimum average width of 100 feet and a minimum area of 20,000 square feet.

2. Buffer Strip

In summary, s. NR115.05(3)(c) provides:

Clear-cutting of trees and shrubs is not allowed in the strip of land from the ordinary high water mark to 35 feet inland
One exception exists for a 30 foot wide path, for every 100 feet of shoreline, down to the water.

3. Setbacks

In summary, s. NR 115.05(3)(b) provides:

All buildings and structures must be set back at least 75 feet from the ordinary high water mark.
Exceptions: piers, boat-hoists, and boathouses are allowed along the shore.
“Set back averaging”- if an existing pattern of development exists, counties may allow new homes to be built closer than 75 feet from the ordinary high water mark at the same setback as the average setback of neighboring homes.

4. Legal Nonconformities

Under State Statute, Administrative Code and case law, legal nonconforming structures are addressed in shoreland zoning ordinances:

Legal nonconformities generally consist of structures built prior to the adoption of the shoreland zoning ordinance.
There is a provision for the “grandfathering” of homes which allows for the continued use of those homes that were built before the county shoreland zoning ordinance was enacted which are located closer to the water than the existing structural setbacks allow.
The county must in some way address nonconformities in their shoreland zoning ordinance, through limiting or prohibiting additions, structural alterations and repairs.
The intent is that over time the structures will eventually be brought into compliance with the shoreland zoning ordinance.

Background
The state’s private septic system regulations (”Comm 83″) establish standards and criteria for the design, installation, inspection and management of a private on site wastewater systems (”POWTS”) so that the systems are safe and will protect the public.

Comm 83 does not dictate the selection of certain POWTS, and instead sets p a r a m e t e r s , options, prohibitions, and limitations for the design of POWTS. As a consequence of this flexibility, Comm 83 allows the use of five new categories of POWTS. Unlike conventional systems that rely upon the soil to treat wastewater, the new POWTS systems contain filtering devices that remove organic material and bacteria from wastewater before it is released into the ground. Because of the effectiveness of these filtering devices, the new POWTS may require a minimum of six inches of in situ soil (native or naturally occurring soil), rather than the 24 inches of in situ soil required by conventional systems. The new systems generally have been approved by the United States Environmental Protection Agency (EPA) and the Wisconsin Department of Natural Resources (DNR) and have been used for years in states like Minnesota and Michigan.

In addition to the new systems that will be made available, the proposed rule contains the following important provisions:

Allows counties to delay usage of new system designs for new development until January 1, 2003. Counties, however, cannot delay the use of these designs for replacement systems.

Requires plan approval and a sanitary permit before the installation of a POWTS may begin; local governmental units would still be required to review plans employing “conventional” technology for residential projects while plans for commercial projects or projects employing technologies not previously recognized would be reviewed by the Wisconsin Department of Commerce (”Commerce’). Plans using other types of “pre-recognized” solutions would be reviewed by either the local governmental unit or Commerce depending upon where the submitter wanted the service to be performed and if the local government unit had opted to provide this service as an agent of the department.

Requires the testing of components before the system is put into service.

Improves inspection and maintenance requirements. The proposed code requires property owners to maintain a maintenance or service contract with a professional maintenance provider meeting the state maintenance requirements. In addition, property owners must provide a copy of the maintenance report to Commerce or the county, if applicable, within 10 business days from the date of the inspection, maintenance, or servicing.

Authorizes municipalities to prohibit the use of holding tanks, constructed wetlands, and evapotranspiration beds.