Hitting Your Home For A Loan
HARRISBURG (Dauphin
Co.) It wasn’t supposed to be
this way. They toid us before the
contractors started digging the
foundation, this was the “starter
home.” But when the family
began to grow, so did home val
ues and remodeling proved easi
er than finding a decent house to
buy.
You’re not alone. Home values
are increasing at a record pace
across the country, prompting
many homeowners to reinvest
that newly gained equity back
into their homes rather than relo
cate. But what’s the best way to
raise cash for the contractor?
Home Equity Loans
The practice of borrowing
against the value of a home has
gained in popularity over the last
10 years. According to the Na
tional Home Equity Mortgage
Association (www.nhema.
org), home equity loans will hit
$5OO billion this year compared
to $34 billion 10 years ago. There
are three key reasons for this
surge: escalating home values,
low interest and tax deductibili
ty-
There are two ways to tap into
the home equity of your home.
The right choice for you depends
on your needs. If you’re looking
for a fixed, lump-sum amount,
perhaps for a major home im
provement project, you’re better
off with a home equity loan.
With a home equity loan, the
term, and usually the interest
rate and monthly payment, re
main the same over the life of the
loan.
If you want the convenience of
‘ User-Friendly ’ Ozone Ready To Become Latest Tool For Food Safety
PALO ALTO, Calif. It
leaves no taste, odoi* or flavor.
But by passing the Food and
Drug Administration’s (FDA)
initial review in an extremely rig
orous process, it has the potential
to become the next major tool for
the safe treatment, storage and
processing of nearly every type of
food, including meats, poultry,
fruits and vegetables, in the U.S.
With scientists continually
studying ways to ensure the on
going protection of the food sup
ply, for the past several years
Appreciating Depreciation:
HARRISBURG (Dauphin telliChoice (www.intellichoi-
Co.) When considering the ce.com), based in California,
costs associated with purchasing which provides consumers with
a new vehicle insurance, main- data about the true cost of own
tenance, loan interest don’t ing cars and trucks. By the end
forget to factor in depreciation, of the fifth year, the value drops
You won’t find it on the sticker by an average of 35.1 percent.
price, nor will you be billed for it.
You may not even notice it until
the time comes to sell your car.
Still, depreciation can cost you
big money over the years.
In the first year you own a
new car, the vehicle may lose 20
percent of its original value due
to depreciation, according to In-
NEED YOUR
FARM BUILDINGS
PAINTED?
Let us give you a price!
Write:
Daniel’s Painting
637-A Georgetown Rd.
Ronks, PA 17572
(or leave message)
(717) 687-8262
Spray on and Brush in Painting
drawing against your credit line
as the need arises, a home equity
line of credit also known as a
HELOC is more likely to meet
your objectives. Instead of bor
rowing a fixed amount of money,
you qualify for a certain amount
of credit. You then can borrow
up to your credit limit whenever
the need arises. The money is ac
cessible instantly, usually by
writing checks assigned to the
amount or by using a credit card
issued by the lender.
Regardless of the route you
take, shop lenders to get the best
rate and terms. Include the fol
lowing questions when consid
ering a home equity product and
lender:
• What am I paying in inter-
est?
Interest rates vary among
lenders, so query several and
compare the annual percentage
rate (APR). Remember, the APR
is based upon the interest rate
alone. For a true comparison of
credit costs, compare other
charges, such as points, fees, and
closing costs. If the lender is of
fering an introductory “teaser”
rate, be sure to find out what rate
you will be paying after the
promotional period ends.
• What is the index based on
and how often can it change?
The interest rate on a variable
rate loan must be based on a
publicly available index. Most
lenders use the prime interest
rate. In today’s market, you
should look for a lender that of
fers the prime interest rate for
the life of your loan. In any case,
you shouldn’t have to pay more
EPRI’s (Electric Power Research
Institute) Agriculture and Food
Technology Alliance (AFTA) has
coordinated an effort to review
the use of ozone as a food safety
additive, and then to obtain for
mal federal authorization for this
additive.
Though ozone has been used
in other countries in food pro
cessing, and in the U.S., for
water treatment, FDA regula
tions never listed it as an approv
ed food additive. Despite the des
ignation of ozone in 1997 as
It’s not only buyers who pay
the price. Depreciation also af
fects the cost of leasing as well
because leasing payments are
based in part on what a vehicle
will be worth at lease-end. The
more it depreciates, the less value
it will have at lease-end. So, you
can lease a vehicle with the same
sticker price as
the one your
neighbor’s leased
but pay a higher
monthly lease
payment if yours
depreciates at a
y / —CLOSED SUNDAYS, NEW YEAR,
rajSLjfl EASTER MONDAY, ASCENSION DAY,
WHIT MONDAY, OCT. 11, THANKSGIVING,
f «2Nim{ CHRISTMAS & DECEMBER 26TH
FISHER’S FURNITURE, INC.
than two points above prime. It’s
also important to know how
often the lender adjusts the rate.
• How much can the rate in
crease?
Under current law, all varia
ble-rate plans must have a cap
on how high your interest rate
can climb over the life of the
plan. Most variable-rate lines of
credit also have a cap that limits
how much and how often the
rate can change during the
course of a year.
• What are the closing costs?
Closing costs, which may in
clude (but are not limited to) a
title search, appraisal, attorney
fees, recording charges, and no
tary fees, also vary from lender
to lender. With financial institu
tions vigorously competing for
the home equity market, you
should be able to negotiate waiv
ing some or all of the closing
costs. But shop carefully, as some
lenders impose a fee for each
time you access the account, and
others charge for not using it.
• What are the repayment
terms?
Usually, you repay the loan in
regular installments. Paying
more than the minimum month
ly payment will pay off the loan
faster and reduce your costs.
Check your terms, though. Early
repayment may have a penalty
attached. Unless it is absolutely
necessary, avoid interest-only re
payment options in which you
pay on the interest during the
term of the loan and the balance
is due at the end of the term.
This option can prove much
more costly.
“Generally Recognized as Safe”
(GRAS) by an independent panel
convened by EPRI, this still
meant federal approval of ozone
use required an extensive petition
for consideration by the FDA,
which already has accepted it,
filed it, and designated it for ex
pedited review a major hurdle
to pass since only one out of
every 10 to 12 petitions makes it
to the filing stage. Final action
on the petition is expected by no
later than next February.
“Although the food safety sys-
The Invisible
faster rate.
You can’t stop depreciation,
but you can lessen the impact it
will have on your wallet. Here
are a few points to consider from
Home & Family Finance Maga
zine:
• Some makes and models de
preciate faster than others. Accu
rately predicting depreciation is
difficult because so much de
pends on a vehicle’s continuing
popular appeal. But you can get
a rough idea how much it will
depreciate. Consult a “blue
book” or other pricing guides to
find out how well previous years’
models have held their value.
The Credit Union National Asso
ciation Web site has a deprecia
tion calculator. Go to www.cu
na.org and select “calculators.”
• The pace of depreciation
NEW AND USED FURNITURE
USED COAL & WOOD HEATERS
COUNTRY FURNITURE & ANTIQUES
BUS. HRS. BOX 57
MON.-THURS. 8-5 1129 GEORGETOWN RO
FRI, 8-8, SAT. 8-12 BART, PA 17503
Lancaster Fanning, Saturday, November 4, 2000-817
Ida’s
Notebook
isser
Last week 1 mentioned that we
were going to fly to Indiana to
visit our daughter and her fami
ly. She had her third baby boy
last month he is our fifteenth
grandchild.
Well, the trip ended up being
an adventure! We got up at 4
a.m. to fly out of Harrisburg. Our
son drove us there as we’d be
gone five days. We landed in the
Cincinnati Airport which is in
northern Kentucky. Then we
flew to South Bend which is in
Indiana. But, instead of landing
there, the pilot announced that
he could not land, due to weather
conditions, and so he was going
to fly us back to Cincinnati.
What!!
We were given a seat on a later
plane to South Bend, but then it
too was cancelled before it left
the ground.
Next we were told we would
fly to Kalamazoo in Michigan
and then be bussed back to South
Bend. We sat on the plane one
and one-half hours before it took
off and then had a rough hour
ride on an old small bus to South
tem has worked well, it’s impor
tant to get ahead of the curve,
and the use of ozone as an anti
microbial agent can help the in
dustry do that,” said Dr. Chuck
Sopher, director of EPRI’s
AFTA, which is based in Wash
ington, D.C.
“Consumers view microbial
meaning germ and bacteria con
tamination as their highest food
safety concern, and the organ
isms responsible for diseases con
tinue to mutate. Ozone is an ex
tremely “user-friendly’ agent the
Cost Of Vehicle Ownership
levels off after five years. Hang- manufacturer that makes only
ing on to a vehicle for at least subtle style changes each year,
that long minimizes the impact • Depreciation can deal a sub
of depreciation on the overall stantial financial blow to the
cost of ownership. owner of a new vehicle. But it
• It’s smart to pick options can work to your advantage if
that will appeal to the next you’re in the market to buy or
buyer. Vehicles with air condi- lease one that is used. A model
tioning, automatic transmissions, that depreciates considerably in
sunroofs, and convertible tops *ts early years may be an excel
tend to hold their resale value * ent deal as a used car.
better. Lesser known models, Shannon Villa is assistant vice
“luxury” nr “limited edition” president, communications of the
models, and those with odd col- Pennsylvania Credit Union
ors or features tend to depreciate League, a statewide trade associ
faster. ation representing Pennsylvania
credit unions. Send your finan
cial questions to “Common
Cents,” c/o the Pennsylvania
Credit Union League, P.O. Box
60007, Harrisburg, PA
17106-0007, or email svilla@pa
cul.org. Stop by our Web site
• Vehicles that change dra
matically in style from one year
to the next tend to lose resale
value faster. Last year’s model
quickly becomes outdated and
loses its attraction to potential
buyers. Choose a vehicle from a
SANDBLASTING
SAND
BAC OR BULK
PICKUP OR DELIVERY
CALL FOR PRICES
MIKE DAVIDSON SANDS.GRAVEL
(410) 758-2618
Bend where our daughter who
expected us at 9 a.m. finally met
us at three in the afternoon. She
had to run back and forth be
tween her home and the airport
several times with her tiny baby.
We had nice weather for our
visit in her big, beautiful home.
They live on a lake in a wooded
area. She took us for a ride on
their pontoon boat. Later she
drove us to Lansing, Michigan,
where my sister lives. She too had
a new home which we had not
seen before, as they moved into a
new community.
Soon our daughter’s two
month leave will be over and she
will go back to work. She gave us
a tour of the fruit juice plant
where she works. Everything is
very automated and we saw very
few people. They send many
truckloads of juice out of the
plant everyday.
Now I better finish picking the
pole limas as there are quite a
few still on the vines. There is al
ways work to do around our
home.
represents another weapon in the
arsenal to help assure the long
term safety of the U.S. food sup
ply.”
According to Dr. Dee Graham,
manager of EPRI’s AFTA Food
Office, ozone works as an oxi
dant to damage the cell walls of
harmful microorganisms, thus
killing them and leaving only
oxygen but no tastes, odors or
flavors as a by-product. Also,
because of ozone’s short half-life,
it leaves no residual in the food
(unlike chlorine).
(www.pacul.org) to
learn more about
smart money manage
ment.
19