Everyone has their eye on rising energy costs, and homebuyers are no exception. According to the National Association of Home Builders(www.nahb.com), smart sellers are responding to this trend with energy-efficient upgrades.

Which improvements can catch a buyer's eye?
A recent survey of professional remodelers pinpoints several value-adding projects:

• Windows and doors:
  • Dual-pane,
  • Low-E windows that reflect both infrared and ultraviolet light
  • Insulated exterior doors.
• Air sealing:
  • Foam or fiber insulation sprayed into wall and roof cavities.
• HVAC systems:
  • High-efficiency heating and cooling equipment with the ENERGY STAR rating, combined with programmable thermostats.
• Kitchen appliances:
  • Dishwashers
  • Refrigerators
  • Room air conditioners and dehumidifiers that have earned and ENERGY STAR label.
• Water-saving fixtures:
  • Low-flow toilets, faucets, and shower heads.
• Newer technologies:
  • Tankless water heaters that heat water on demand
  • Photovoltaic shingles
  • Wireless lighting.

You can also find more information about resource-efficient renovations from PATH-
Partnership for Advancing Technology in Housing

Although consumer understanding of credit scores has improved over the past year, it still remains poor. According to a recent survey commissioned by the Consumer Federation of America, this lack of knowledge can hit consumers where it hurts most-in their wallets. In fact, if all U.S. consumers raiser their credit scores by just 30 points, they could save $28 billion each year.

Just as importantly, confusion about credit scoring can jeopardize your ability to get a mortgage, a cell phone, insurance, or even a job.

To boost your financial IO, here are a few facts and fallacies about credit scoring:

• Credit scoring quantifies your ability to manage debt; Scores are not influenced by personal characteristics such as age, income, marital status, level of education or race.
  
  
• Making a monthly payment more than 30 days late will damage your credit score. Maxing out a credit card or opening several new accounts can do the same.
  
  
• Consumers with credit scores above 700 usually qualify for lower "prime" rates, while those with scores of at least 760 pay the lowers interest rates, Borrowers with a score below 600 are almost always charged higher "subprime"rates.

You can receive a free credit report each year from the three major credit agencies, which you can access at www.annualcreditreport.com

To obtain your credit score, however, you must pay a modest fee (starting at $15). To purchase your score, contact the Fair Isaac Company or one of three credit bureaus:

www.Equifax.com
www.Experian.com
www.transunion.com

For a free consultation to discuss which type of mortgage loan will work best for you, call Victoria Spannaus at Wachovia Mortgage, FSB. at (800) 741-7813 or 910-692-6225.

If you have recently sold a home, calculating its cost basis may be important for federal income tax purposes. Though the 1997 Taxpayer Relief Act liberalized capital gains rules, it did not affect how your cost basis is calculated.

Begin with the purchase price of your home. Add the cost of any capital improvements that added value to your home, prolonged its useful life or gave it a new or different use. Add any special tax assessments you paid. Then add any amounts spent to restore property damaged by fire, flood, wind, etc., net of insurance reimbursements and deductions taken against income.

Now subtract settlement or closing costs (for both your initial purchase and subsequent home sale) which you have not previously deducted from taxable income (these do not include prepaid expenses such as real estate taxes, homeowner's insurance and prepaid interest). Subtract depreciation previously claimed for business use of your home. Finally, subtract payments received or credits for easements/rights-of-way, energy-related capital improvements, etc. The total is your adjusted cost basis. For additional information consult IRS publication 523 (Selling Your Home).

For a free consultation to discuss which type of mortgage loan will work best for you, call Victoria Spannaus at Wachovia Mortgage, FSB. at (800) 741-7813 or 910-692-6225.