The electricity supply agreement sets a flat annual kWh price on electricity supply of 10.8¢. In pricing electricity, usually there is a summer price and a winter price, with the summer price being higher in our area. With this agreement, it would be a flat rate throughout the year. To give you an idea of energy use, we typically use more energy in the winter than we do in the summer (about 1,000 kWh per month in the winter, 600 in the summer).

Supply & Delivery

Electricity and natural gas supply have been deregulated in a lot of states, including Maryland, so you have plenty of options when it comes to the supply and delivery of power. When it comes to supplying electricity to your home, you often have to make decisions on two parts. The first is the company that will be supplying the electricity. The second is the company that will be delivering the electricity. Very often, the two companies are the same and it’s usually the company delivering the electricity.

At our home, and I believe this is common, we have no choice on the company delivering the electricity – it has to BG&E. They own the wires and the pipes, so they will deliver the power. For the supplier, there are plenty of options and the only requirement is that they must be licensed by the Maryland Public Service Commission (PSC) and registered with BG&E.

Shopping for Electricity

Right now, our electricity supplier is Washington Gas Energy Services. They recently sent me an electricity supply agreement that would renew our plan at 10.8¢ per kWh. We have the option of renewing for one year or two years at that same 10.8¢ rate. Is that a good deal?

It is if BG&E would charge us more. On our electric bill, BG&E lists the “Price to Compare” at 11.97¢ per kWh. That is BG&E’s estimate of how much an average BG&E residential customer would pay on our schedule per kWh. In other words, working with Washington Gas Energy Services would save us over a cent per kWh, or nearly 10% off. We use around 6-700 kWh’s a month, so it’s a savings of $6-7 a month.

I would’ve expected WGES to have a price in between BG&E’s summer and winter rates, but it’s not. It’s lower than both. WGES is a better choice even with our uneven seasonal use of electricity.

Sign a Long Term Contract?

The next question is whether we should sign up for a one year renewal, which is the minimum requirement, or a two year agreement. Whenever I’m presented with this decision, I try to avoid over thinking and over analyzing it. I’m expected to save $6-7 a month based on BG&E’s estimates, which I have to believe are on the low end of their range because they want me to buy their electricity. I also expect energy prices to go up, that’s just the direction they naturally move in, so locking in long term makes sense.

What’s the risk? Electricity prices plummet, but I can’t believe they will plummet so far that I’ll feel burned by taking a two year 10.8¢ offer when BG&E’s projections are 10% higher. Last winter, the price was 11.75¢ per kWh. This past summer, it was 12.66¢ a kWh. Now, it’s 11.97¢ per kWh… prices aren’t going to drop so far that 10.8¢ looks like a bad deal.

We’ll be locking in the price for two years. There’s an added benefit of 5% of the electricity will be coming from wind power, that’s icing on the cake.

What do you think? Am I missing a big piece to the puzzle somewhere? This seems like such an easy decision that I feel like I’m missing something. I’d love to hear your thoughts!

(Photo: mpeterke)

Reviewing Our Electricity Utility Supplier from personal finance blog Bargaineering.com.

At the moment the bill has passed only the House of Representatives, it or a similar bill needs to pass the Senate, then reconciled, then signed by the President before it is law.

“If you are in a conflict zone, you don’t have time to get together with your spouse and family to go house shopping,” says Rep. Ron Kind, a Wisconsin Democrat. Rep. Dave Camp, a Republican from Michigan, expressed similar concerns. “A lot of service members get called overseas at a moment’s notice,” Camp says. “And because of the time limit on the legislation now, they can’t always take advantage of it, not because of anything that they did or didn’t do but because of the unique nature of serving in our armed forces.”

It’s estimated that this will result in an additional 10,000 home sales, likely clustered around military facilities, at no extra cost. It’s revenue neutral because there are other revenue generating provisions included in the bill. The Senate received the bill yesterday and is set to vote on it fairly quickly.

As for the original credit set to expire on November 30th, there are discussions about extending the credit an additional six months.

House Votes to Extend First-Time Home Buyer Tax Credit for Service Members [U.S. News & World Report]

$8,000 First-Time Homebuyer Credit to be Extended for Military from personal finance blog Bargaineering.com.

Now, if you’re looking looking for ideas to be green while washing around the kitchen, here are some ideas you consider:

Dish-washing Liquid Gone Green

Choose vegetable-based detergents whenever possible. When reading the label on dish-washing liquid, even the so-called natural bottles, avoid for undesirable ingredients such as:

• fragrance
• sulfates
• formaldehyde
• color added

Add A Little Borax

A great trick to getting the natural dish-washing liquid to be more effective without the nasty chemicals is to add a little borax to the water before washing the dishes.  Borax, or sodium borate, is a naturally occurring alkaline mineral first discovered over 4000 years ago. Here are some other little known benefits of borax:

• cleans
• deodorizes
• disinfects
• softens water
• repels bugs

Wear Gloves

If you are still using some of the mainstream dish-washing when cleaning the dishes, don’t despair, you can wear gloves. This will help prevent any skin irritation and prevent absorption of harmful ingredients in the such as dioxanes, dyes and perfumes. Then you can move on to the more natural products as soon as possible.

Dilute, Dilute, Dilute

Most brands of cleaning products on the market today, including the natural choices, are very concentrated. Most of us tend to use too much product when we clean. As a way to make your products last longer, dilute your vegetable based dish-washing liquid with water. This will not lessen the effectiveness by very much. You can add a bit of salt and pour the mixture into a spray bottle to make it last longer and use less with each spray.

Another great option is to choose the multi-talented and uber-concentrated castille soap by Dr. Bronner’s, which comes in a scent free option.

Stinky But It Works – Vinegar

In my last post, 5 Green Ideas For A Naturally Clean Home, I sang the praises of using vinegar as an effective alternative to conventional cleaning products. The response was clear, it works but boy is it stinky. While that is true, the fact remains that vinegar is quite the amazing little cleaning tool.

A great addition to your dish cleaning arsenal is a dash of vinegar to the cleaning liquid. It will cut through the grease like a pro. And, you can always add a bit of your favorite essential oil if the smell is a huge issue for you.

Do you have great green kitchen tips? I’d love to hear from you in the comments section below.

Enjoy!

Signing off… EcoDiva

(Photo: Editor B)

5 Green Ideas For Naturally Clean Kitchen from personal finance blog Bargaineering.com.

Keep Your Coffee Pot Clean Naturally

After weeks or months of a daily (organic) grind, your coffee pot may need a bit of freshening up. Your coffee will taste better when the coffee maker is clean, naturally.

• Fill the water carafe with one part white distilled vinegar (organic if possible) to two parts water and turn on the machine
• Once the cycle is complete, let the water/vinegar solution cool in the coffee pot.
• Next, spill the water/vinegar and run 2 cycles with using water
• Finally, rinse the coffee pot with warm water and soap
• Enjoy an amazing cup of coffee once again

Clean That Cutting Board

Cutting boards tend to build up stains and smells over time. Especially for those of us who love adding garlic and onions to our cuisine, that cutting board can become a lovely array of odors. To get those smells gone, try this simple solution.

• Cut a lemon in half
• Rub the surface of the cutting board with the lemon (use it as a sponge)
• Just rinse and wipe dry…sniff test…and voila, no more smell

Got A Clog?

Traditionally, a clogged drain means one of two things; either a call to a local plumber or reaching for a poisonous bottle of a drain cleaner. There is another option to try naturally before turning to the toxic solution. (If you have already used the commercial drain cleaner and it is still in the pipe, this is not a good option. It might be time to call in a professional).

• Try to remove as much of the clog in the drain as you can reach
• Mix 1 cup of baking soda, 1 cup of salt, ½ cup of white vinegar
• Pour the solution down the clogged drain and wait 15-20 minutes
• Pour a pitcher of boiling water down the drain

Clean Those Countertops

The store shelf filled with countless kitchen cleaning products will definitely get your countertops clean. But, so will baking soda. A quick easy way to get those countertops and porcelain sinks gleaming again is a simple paste made from baking soda and water.

• Simply mix the two ingredients in a bowl until the consistency of a thick paste is reached
• Use small amounts to rub the entire surface
• Finish with a wash of warm water and enjoy!

The Toilet Bowl Blues

One of the most frequently asked questions I hear about eco-friendly cleaning is aimed at the toilet bowl – “Will natural cleaning options be good enough to really clean the toilet?” The answer is yes, you can turn to vinegar, baking soda and a bit of citrus oil to keep the toilet dazzling and clean. Here are a few key tips to implement without the use of harsh toxic commercial products:

• Make a paste out of borax and lemon juice
• Flush the toilet bowl then rub the paste in with a toilet brush
• Let it stand for two hours, then scrub it off
• Flush and enjoy!

OR

• Once a month, pour in around ½ gallon of white vinegar and let it sit overnight
• The next morning, flush and enjoy the clean!

OR

• Pour in one cup of baking soda
• Let it sit for 15 minutes
• Flush and enjoy your odor free bowl

5 Green Ideas For A Naturally Clean Home from personal finance blog Bargaineering.com.

1. Dirt – Dirty = bad
2. Odors – Stinky is not good either.
3. Old fixtures
4. Wallpaper – They recommend removing it all.
5. Popcorn acoustic ceilings – They badly date your house, we have them and we hate it.
6. Too many personal items – It’s hard for someone to envision themselves living in your house if all your stuff is still there.
7. Snoopy sellers – Please don’t be there.
8. Misrepresenting your home
9. Poor curb appeal
10. Clutter

If you don’t want me to buy your home, there’s one very simple thing you can do: be there. (which is a mix of #6 and #7)

On several occasions, we would walk into a home and the owners would be there watching television. When I am looking at a house, I want to peek in the closets, I want to turn on the showers, and I want to look in every nook to see the house for what it is. When there are a ton of personal items there, I feel like I’m snooping and I’m violating someone’s personal space. When they’re actually downstairs watching TV, I feel like I’m really violating their personal space.

So, don’t do any of the ten things Bankrate recommends you avoid and please don’t be there.

(Photo: thetruthabout)

Don’t Want To Sell Your House? Do These Things from personal finance blog Bargaineering.com.

At first, this sounds like not a big deal right? How lazy could I be?

It’s not that big of a deal but that, coupled with my growing appreciation for being as ecofriendly as possible, has turned me onto the idea of rain barrels. Why pay for water when I could be catching what falls for free from the sky? So, I started researching rain barrels and the first thing I learned was that they are expensive!

Buying A Rain Barrel

Rain barrels can get as simple or as fancy as you want. You can get a simple lightweight 55-gallon plastic barrel for around $80 and you can get a fancy hardcore plastic one for close to $200. Even at both price points, it seems a little pricey for something that is essentially a huge container that captures rain water, right?

Even after you buy one, you still have to make modifications to your downspouts so that the water is directed into the barrels. You’ll still have to do a little handywork yourself, so you might as well build the whole thing yourself.

Building A Rain Barrel

Fortunately we have the power of the internet, so we can find videos on how to build them! Here’s one from HGTV (actual construction begins at the 1:45 mark):

Is it worth it? Well, a quarter inch of rain on a “typical size roof” can yield close to 200 gallons of water!

An understated but crucial step in the process is the use of a screen to help filter out the junk that would otherwise come through your downspout. They don’t make a big deal of it but I think this one step can help extend the life of your barrel and reduce the number of times you’ll have to clean it out due to clogs. The overflow pipe pointed away from your foundation is a good idea too.

Poor Man’s Rain Barrels

Don’t want to build your own and don’t want to spend $80+ on one? I don’t blame you, the next best thing you can do is simply leave some buckets outside! Simple right? At the moment, we keep a bunch of buckets outside so that when it rains, the buckets are being filled. This is a simple solution because it takes advantage of containers you already have. The downside of this solution is that it doesn’t look very attractive and it’s not very efficient.

The next step for us is to build a rain barrel, a project that I think will be both fun and informative for us. And it’ll save us trips down stairs.

(Photo: fireballsedai)

Poor Man’s Guide to Rain Barrels from personal finance blog Bargaineering.com.

Mortgage refinancing, much like buying a home, can sometimes be a scary process because it involves what usually is the largest asset you have. That’s the case for us, our home is our more valuable physical financial asset by far, and so any decision involve something of that magnitude can be a little scary.

Fortunately, mortgages aren’t quite that complicated and there is a wealth of resources available to help you compare different offers.

Analyzing Mortgage Refinance Offers

When you get mortgage refinance quotes, there are a lot of information to process. Here’s what I always try to find out:

• APR – This is the interest rate on your mortgage.
• Term – This is the the length of your mortgage (30 years, 15 years, etc.).
• Points – To get the listed rate, you may need to pay “points.” A point is 1% of your mortgage amount. You may be able to deduct mortgage points if you meet some requirements, outlined in Topic 504 at the IRS.
• Fees – The fees the lender will charge to process the refinancing.

You can get sample rates, by providing only your ZIP, by going to Bankrate or you play with live ammunition and actually request quotes through Lending Tree (if you don’t want a deluge of calls, Quicken Loans had the top listing for my zip code).

Comparing Mortgage Refinance Offers

Now that you have a couple offers, is the lowest APR the best offer? Maybe, maybe not.

Whether you refinance depends on more than your interest rate because the fees and points involved in a refinance, combined with your future plans, dictates what’s financial smart. For example, if you plan on moving next year, you won’t refinance because you don’t have enough time to recoup savings from monthly payments.

Should you refinance? First, fire up this useful refinance breakeven calculator from DinkyTown.net. Enter in your existing mortgage information and the offer you think is your best refinance offer, then click calculate.

Here’s what the screen may look like, with some sample information (click to enlarge):

If you use the calculator, they’ll explain the difference in the four bars.

Click on View Report and scroll down to Refinancing Summary because this is where the real fun happens. The report will tell you how much in actual total interest you’ll pay over the life of the loan. In my example above, I have $120,167 total interest remaining on the last 16 years. If I were to refinance and increase the number of years on the mortgage back to 30, I would see a $600 drop in monthly payments but I’d slide backwards on the amortization table; I’d pay an additional $73,000 in mortgage interest.

The Decision: The decision now becomes, do you want a monthly lower payment or do you want to pay the least in total interest? If the answer is a lower monthly payment, the correct choice is to get the new loan. This isn’t unexpected because you’ve taken your existing loan balance and stretched it back to 30 years, naturally the monthly payments will be lower.

What if I want to lower the total interest?

Converting to a Different Term

In our comparisons above, we looked at how the monthly payment changed and how much you saved on a month to month basis. If I want to lower the total interest, rather than just the monthly payment, perhaps I should go to a 15 year mortgage.

According to Bankrate, I could get a 15-year mortgage at 4.525% APR. I’ll spare you the screenshot but the four breakeven bars are 8 months, 7 months, 9 months, and 9 months. Again, it would take less than a year to recoup the closing costs of $1500.

What about my payments? I click on the View Report button and I see that my monthly payment has actually gone down by $80 and I would, over the course of the 15 year loan, pay $36,500 less in interest! That wounds like a win win situation to me.

Note: 4.525% APR, right now, seems like an insanely good interest rate. I don’t know that I’d be able to get that interest rate if I were to get live quotes.

Refinance?

All of the breakeven points were under a year and since we don’t have any plans to move within the next year, I’m thinking I’m going to try this exercise with live ammunition. I’ve had good success with Lending Tree in the past, it was a resource I leaned on whenever I bought the house for the first time and I might go back. The one caveat I have with them is that you’re dealing with a broker, so expect a ton of phone calls.

Are you thinking about refinancing? Or have you already refi’d?

(Photo: paul_fisk)

How to Compare Mortgage Refinance Offers from personal finance blog Bargaineering.com.

I looked at Remodeling’s Best Home Renovations list in 2007 (and in 2006) when the housing boom was still happening. Now that we’re in a recession and the value of homes falling, how does the list compare?

In their 2008-2009 list, every midrange project fell compared to 2007 values and only three upscale projects increased compared to 2007. It’s not at all surprising because home values are sinking almost everywhere and it will naturally drag down the value of remodeling. What was once a luxury people would pay for is still a luxury but people aren’t willing to pay top dollar for them.

We recently replaced our roof because it was leaking, the plywood was flexing badly, and the FRT in the wood had activated with the trapped heat in our attic. According to the Baltimore statistics, we can expect to recoup 72.5% of what we spent, compared to 65.5% nationally. While that’s great news, we had a twenty five year old roof that needed to be replaced so even if it were 0% we would’ve done the job (we need a roof!).

Top 5

Not surprisingly, the top five from 2007 are the top five in 2008 (in the same order too), though the cost recouped percentages are lower.

It’s a fun list to play with and I recommend you drill down to as small a geographic area as you can. Each area’s values vary slightly from the national average to account for local trends and geographic preferences, so the deeper you go the more accurate you can expect the numbers to be. In the end, remember that the most important aspect of a remodeling project is how much you’ll enjoy it, not how much money you can expect to make back.

(Photo: wili)

2008-2009 Best Home Value Remodeling Projects from personal finance blog Bargaineering.com.

He says it was a “lot more energy” but if it were me, I wouldn’t have noticed even if I was checking my bills as it was happening. I would’ve attributed the increase in energy costs to fuel being more expensive and it being a colder winter. I know I wouldn’t have noticed. That being said, higher than average bills are usually a sign that something is wrong.

In Maryland, we pay the county every quarter for water. Despite all our conservation efforts, the quarterly cost always seems to be around $50 a quarter (more in the summer). Fortunately for consumers (unfortunately for Mother Earth), water is cheap so our bill rarely deviates by more than a few dollars. A few years ago, my friend discovered that his water bill was over a hundred dollars! (the equivalent of nearly 15,000 gallons of water).

He knew something was wrong. He lived in a house with two roommates but he knew his water bill shouldn’t have been so high. At the time, we had heard a story about someone who discovered a water man break outside their house (it was underneath the sidewalk!) so he was afraid that was the cause. After searching high and low, he discovered the culprit was a poor seal in the toilet tank. It was constantly leaking water out of the tank and into the bowl, like a faucet drip for an entire quarter.

If you have a large bill, try to find the culprit because you may discover something more serious.

(Photo: andrewk100)

Investigate Larger than Average Bills from personal finance blog Bargaineering.com.

Even with cheap labor, home improvement projects still require the right tools. In fact, a semi-pro shop should cost more than $10,000 at retail. But who pays retail anymore? Here’s some ideas on the best and worst ways to get your hands on the tools you’ll need for these projects.

1. Borrow from Family, Friends… And Freecycle

Yep, you guessed it. This best way to get tools is pretty straightforward: if your best friend or big brother already has the tool you need, borrow it. Just remember the following tips:

1. Don’t be a leech. Make sure you offer something in return. You can loan tools you have, or offer to do work at the other person’s house. Maybe you’re good at baking. Returning a tool to our house with some brownies in tow will ensure you can borrow again
2. Take responsibility. When the tool is in your possession, it’s your responsibility. Unfortunately, tools can break due to no fault on the user’s part. Make sure you talk about this situation ahead of borrowing the tool, especially if it’s expensive. I have a policy that if a tool breaks on someone else’s watch, they’ll pay to have it fixed.

Borrowing outside the box: One of our online buddies had great success borrowing a pressure washer from someone a few blocks away by running a request in her local freecycle community. Apparently, even some strangers are willing to lend tools.

2. Co-op Buy with a Friend

One step down from borrowing is co-op buying. Thinking of laying hardwood floors? Have any friends who are going to do the same? Instead of both of you renting a nailer at the local big box (which could cost $240 for 2 days each), why not go in together on an inexpensive nailer for only $200. Or, perhaps one person buys the hardwood nailer and the other gets the compressor and finish nailer kit to install the trim, and you share…

Obviously, this can be tricky… For instance, who owns/keeps the tool when the projects are done? My take: don’t worry about it. If it was cheaper than renting the tool, it doesn’t matter if you don’t end up with it.

3. Rent It

Renting tools make a lot of sense, especially for tools that are one-time use or high priced. All the big name home improvement stores now offer tool rentals, and there are still dedicated rent-a-center type shops. Most places will offer you a low-price insurance policy on the tool in case it breaks while you’re using it.

Our take: buy the policy. You never know what kind of abuse the tool has been through before you picked it up. For a few bucks, you’ll save the hassle of fighting with the store if it breaks.

4. Buy Used

There is an enormous online market for used power and hand tools. Craigslist, E-Bay, and Amazon all have booming pre-owned markets that are worth checking out. Most flea markets and yard sales will also offer some tools, although we find it to be much more tedious than surfing online – especially if you’re looking for a special purpose tool or a particular brand.

5. Buy Factory-Reconditioned (Refurbished)

Nearly every major tool manufacturer sells factory reconditioned (refurbished) tools. Reconditioned means that at some point, the tool broke. It was returned to the manufacturer, who fixed the defect/repaired the tool and is re-selling it. Reconditioned tools are usually priced 30-50% off retail, and include a full manufacturer’s warranty. We maintain a large list of places to buy factory reconditioned tools; the list covers every popular brand.

6. Buy Online

Our favorite first-stop for buying tools online is Amazon. They have more than 10,000 power tools and offer free shipping, which is nice on heavier items like miter saws. Besides Amazon, there are plenty of other online tool retailers that are almost always 5-15% cheaper than the local big box and you can sometimes avoid paying sales tax. Google the name of the tool you’re looking to buy and you’ll find a dozen retailers willing to service your request.

7. Wait for a Sale, Find a Coupon for Retail

Home Depot and Lowes both offer 10% coupons at those links just for signing up for their moving mailing list. The HD coupon is good for up to $200 off, and the Lowes for up to $500 off. If you’re buying a good table saw, that could amount to $50-90 off.

We also maintain automated feeds of coupons for some of the popular online stores including Home Depot Coupons and Sears Coupons, at those links.

Unfortunately, coupons for tools and home improvement stores are rare, and retail is the most expensive (yet most popular) way to buy tools… which leads us to #8.

8. Walk into the Store and Buy It

Rounding out this list is the worst way to come buy a tool: walk into the retail big box store and buy it. Bottom line: You’ll pay for the convenience. It’s the most expensive way to purchase tools.

But hey, it sure is easy, and returning a defective tool is easier.

Did I miss a frugal way to get a tool? Is there a secret you know that I missed?

(Photo: amagill)

8 Great Frugal Tool Options for Home Improvement Projects from personal finance blog Bargaineering.com.

We’re expecting our first child in a couple of months. It’s an exciting time, filled with lots of uncertainty. Thankfully, because of a bit of preparation, we don’t have that much to be worried about financially.

Prior to deciding to have kids, every time I thought about the issue of children, the lyrics to the Harvey Danger song would repeat in my head: “been around the world and found that only stupid people are breeding…” I’m not sure if the song lyric was a slap at unprepared parents or if they were referring to the fact that anyone who decides to have a kid has got to be stupid. Either way, I’ve always felt strongly that I wanted to be *ready* before I brought a kid into this world.

Jim’s mentioned to me that he had no clue when it came to starting a family, so I thought I’d offer up a few thoughts on the subject of planning financially for your first child.

So what does it mean to be *ready* financially for a child? Here are a few steps I’ve thrown together to help you think it through:

Rather than go back to Comcast, a company many of us hated dealing with, my friends looked at their options. They decided to go with DirectTV and their satellite television service, in part because they offer NFL Sunday Ticket. For what it’s worth, DirectTV was named #1 in Customer Satisfaction among national cable and satellite TV providers by the University of Michigan Business School in their 2008 American Customer Satisfaction Index.

They have many different packages but the one my friend Jeremy recommends is their PLUS HD + DVR Package, which has 200+ channels and 95 HD channels for only $49.99 a month (normally $72.99 a month). Included in the package is a Free DVR HD DVR Upgrade, which will save you a few dollars. He was planning on getting the NFL Sunday Ticket package so HD was a must, but the PLUS DVR package, which is ten dollars less, is the same number of channels just minus the HD channels (and the HD DVR of course).

Here is the full package line-up or give them a call at 866-277-2216 and they can explain it to you if this mish-mash of terms and explanations is a little confusing:

The deals aren’t too shabby and my friend Jeremy seems to be pretty pleased with his experience thus far. If you have any experience with DirectTV, please share them in the comments.

DirectTV Satellite Television Deals from personal finance blog Bargaineering.com.

In Maryland, we have a Homestead Tax Credit that “limits the amount of assessment increase on which an eligible resident homeowner actually pays county, municipal and State property taxes each year.” This protects people from huge spikes in property taxes every three year assessment cycle. When we bought our home three years ago, we didn’t immediately begin paying taxes on our assessed value (the purchase price). The assessment value gets slowly phased in, 10% for State assessments each year, until it reaches the total assessed value.

Two years ago, the Maryland General Assembly enacted legislation that would require homeowners to submit a one-time application for the Homestead Tax Credit. This checks that each family receiving the Homestead Tax Credit was actually supposed to receive it. You’re supposed to only receive it once, on your principal residence, per person or married couple. They check primary residence by confirming income tax and motor vehicle record in the state. This is to prevent people from claiming the credit on second homes or rental properties, for which this law was never designed for.

Well, our three year assessment cycle came due and we had to re-apply. The process took two minutes and will save me the county and state taxes on $108,943 of my assessment. Translate that into taxes and you’re talking close to $3,000 a year! I don’t think there’s a single action in the world that has an ROI like that!

Maryland produced this straightforward Homestead Tax Credit FAQ but it’s pretty clearly laid out in the assessment notice they send you. You don’t need to apply until they send you your assessment but you can do everything via their online form. You will need the paper application form so you can get your Real Property Account # and an Access Number.

Maryland Homestead Tax Credit Application from personal finance blog Bargaineering.com.

Today was a totally different story. I submitted my request in the morning and it wasn’t until 5 PM that I saw some “quotes” roll in. I put that in quotes because it was one lender with three quotes depending on what loan I wanted. By then I had talked to a local lender and a loan officer from BB&T, where my current mortgage is. The loan offer was from a lender in Kentucky and it was far inferior to the one offered by BB&T (the local lender will get back to me tomorrow). Maybe it’s because we’re so close to the holidays, maybe it’s because we’re in a sagging housing market, or maybe because I’m a weak borrower, but it’s overall a pretty lackluster response.

Here are the offers so far on the table (obviously pending credit checks and whatnot):

• BB&T Mortgage said that I could get a 20 or 30 fixed year mortgage at 4.875% or a 15 year mortgage at 4.75%, with no points. The closing costs, which would include all the document fees, escrow setup, and title insurance BS would run about $3,100 to $3,200.
• SurePoint Lending had three offers – $4.875% on a 30 year fixed with one point, 5% on a FHA 15 year fixed with no points, and 5.25% on a 30 year fixed with no points.

Assuming the closing costs are going to be similar, the SurePoint offer doesn’t come close to the MM&T Mortgage and I’m inclined to stick with the bank I’m already with. I didn’t set up my loan with BB&T, they bought it, but I haven’t had any problems and they’re offering a much cheaper option.

Perhaps tomorrow will bring more quotes but I’m not holding my breath, it looks like the number to beat is 4.875% with no points.

LendingTree Not As Fast, or Good, With Refinancing Quotes Now from personal finance blog Bargaineering.com.

We only talked about it briefly but loan modifications are for when you want to change one or more terms on the loan and can only lower your interest rate if you have an adjustable rate mortgage. There are cases where loan interest rates can be modified as well but those are usually for when you can’t make payments, they won’t just drop it just because you ask nicely (too bad). In my situation of having a fixed rate mortgage, a loan modification wouldn’t help me. The only thing I could do is pay a big chunk of principal and have the loan re-amortized.

So option one of a loan modification is out but the rate I was quoted from BB&T for a refi is 4.875% APR on either a 30- or 20-year fixed with closing costs of around $3,100 to $3,200.

The game continues!

Loan Modifications Reamortize, Don’t Affect Fixed Rates from personal finance blog Bargaineering.com.