Mortgage Rates Dip Slightly

The 30-year fixed mortgage rate dropped to 5.22 percent during the week ended Aug. 6 from 5.25 percent the prior week, Freddie Mac reports.

Over the same period, the 15-year fixed-mortgage rate slipped to 4.63 percent from 4.69 percent.

As for adjustable-mortgage rates, the five-year fell to 4.73 percent from 4.75 percent, and the one-year dipped to 4.78 percent from 4.80 percent.

Source: Los Angeles Times (08/07/09)

Remodeling Pyabacks

Many homeowners want to select renovation projects that are likely to yield the highest return on their investment when they ultimately sell their home.
The following renovations are those most likely to result in a payback for homeowners:
Average Cost Return on Investment
Vinyl Siding Replacement $9,134 87.2%
Minor Kitchen Remodel $17,928 85.2%
Window Replacement (Wood / Vinyl) $11,040 / $10,160 85.3% / 83.7%
Bathroom Remodel $12,918 84.9%
Two-Story Addition $105,297 83.2%
Attic Bedroom $44,073 79.9%

Although return on investment is important, also consider your lifestyle. If your family is growing, an extra bathroom or bedroom may be your most immediate need, even if a kitchen remodel would result in a higher return on investment. In contrast, empty nesters may be more inclined to take on renovations that reduce ongoing maintenance, such as vinyl siding, instead of adding space to their home.