Appliances: When to Repair - When to Replace

The hot water is no more, or the furnace makes you pull out the blankets. Perhaps your washing machine just spun it's final load.

The question becomes, Fix it, or junk it?

If an electronic device cost less than $200, junk it without further thought. Repairing a relatively inexpensive item like a cordless phone or countertop microwave is not cost-effective.

The repair-or-replace question is directly tied to how much longer you can expect the product to last. You can get data on the life expectancy of all sorts of home components, from faucets to refrigerators, at the National Association of Home Builders website (nahb.org). Your results may vary, depending on the quality of your model and how religious you've been about routine maintenance.

In a few cases, there may be new bells and whistles that render your old appliance obsolete — or simply unwanted. For example, most professional advice will tell you it's never worth making major repairs to a top-loading clothes washer. In addition, clothes dryers haven't improved much in basic function over the years.

If you have any questions about whether to repair or replace an appliance or component in your home, do some research. Try posting your dilemma at Applianceguru.com, or post your question or comment here… someone may just answer you with the advice you need.

Appraisals: Who's to Blame for Low Estimates? Who exactly IS at fault when an appraisal comes to a less-than-desirable valuation? And what IS a home appraisal based on?

Appraisals are typically handled through a title company and appraisers are often selected from a network of appraisers with which the title company is affiliated. They’re an unaffiliated third party. Often times, there’s confusion because the homeowner is informed about the cost of the appraisal by the mortgage company/banker, when actually there is no mutually beneficial relationship.

So if an appraiser sets a value on your home that comes in too low to move forward with the home loan, the mortgage company nor the mortgage banker can benefit in any way.

So Who's to blame? Unfortunately there’s no real person to yell at. The current nationwide trend of decreasing home values is to blame. Right now, home values in some locations are appraising at 40% under the price at which they initially sold.

Have you had an appraisal done on a property you own that you thought was extremely low or off-base? Sound off. Tell us about your experience by using the comment link below. Your email address will never be shared on this site to protect your privacy.

Mortgage Help: Talk is Cheap

With foreclosures and bankruptcies soaring nationwide, both government and private industry have been promising help to homeowners. But is that help materializing? Money Editor Stacy Johnson explains in this short (1:39) video…

If you have questions about Hope Now, or other help that may be available to you, please leave us a comment below, we'll either answer your question here, or get back to you directly with an answer if your situation requires additional information before we can answer your question properly.

How the Fed Rate Affects Mortgage Rates

Fixed-rate mortgage rates, though not directly tied to the Fed Funds Rate, have been responding positively to market rate cuts over the past few months.

Just as an overview, the Fed Funds Rate has a strong (if not direct) affect on the following:

• credit card rates
• adjustable-rate mortgages
• interest on savings accounts
• Prime Rate (home equity lines are based on this)

If you're considering refinancing or purchasing a home, now is the time. With rates at these levels, you'll enjoy more house or mortgage for the same payment. Just lowering your rate 1% on a typical $200,000 mortgage can save you about $125 a month or $45,360 for the life of your loan.

And don't forget, housing prices are the lowest they've been in generations. The opportunity to purchase a home with a low price and low rate is unprecedented. Real estate investors who do their homework and invest wisely can also get deals they couldn't have even dreamed about just a few years ago.

Thanks to the Fed Funds Rate dropping to the lowest level in history, mortgage rates have also dropped.

Waiting may be one of the costliest decisions you've ever made!

As we pause to reflect the season, we would like to wish you and your family a very happy holiday. Thank you for being a part of our blog family this year! We are taking a couple of days off now to spend with our families, and will resume posting more great information for you here in a couple of days.

May the spirit of Christmas bring you peace,
The gladness of Christmas give you hope,
The warmth of Christmas grant you love.
-Author Unknown

Please enjoy our Christmas Video Card….

See you soon!