Sign Up For An Energy Audit And Be DUMB

With the advent of being "green" evolving into the practicality of being energy efficient, many homeowners are embracing the newest trend of energy audits. These audits are provided by both private consultants and your local energy providers.

These energy consultants use an easy-to-remember acronym to demonstrate the different areas of energy loss/inefficiency. DUMB is an easy way to show the four main areas in which homeowners can improve their home's systems and change behaviors that can benefit both you and the planet.

• DON'T lose it. One of the first places an energy consultant examines is where your hot air is going. Findings show that most of the heat in your home is lost through basement floors and above the attic or highest floors. A simple and cost effective solution lies in insulation both the roof and basement. This can be done for less than $800 and will last 10-20 years
• UPGRADING to efficiency. Upgrading appliances is one of the more expensive improvements. However, auditors have prioritized which ones can make the biggest difference. While a hot tub is the most energy-inefficient , the next culprit is your refrigerator. If upgrading it isn't an option, auditors recommend changing the seal every year and cleaning the coils every 3-4 months. Washers and dryers are the third and fourth energy vampires, but surprisingly, the furnace is the most efficient among appliances.
• MAINTAIN all systems. The home works as a system unto itself and when one or more parts are in need of maintenance, it can make the rest of the mechanisms perform poorly. Easy maintenance, such as replacing your furnace filter every month or two will not only keep your air cleaner, but keep it from needing major repairs in the future.
• BEHAVING more efficiently. From replacing incandescent bulbs to compact fluorescent to using a water heater blanket to using a programmable thermostat, the habits owners practice can coax the most energy savings possible out of their home.

Homeownership Still Pays!

Jeff and Sally Hanson purchased their first home three years ago. During that time, and because of the economic recession in the U.S., the value of their home has fallen so low that their home today is valued less than their current mortgage balance.

This hit to their home equity, has given this young couple pause to wonder if it was the smartest financial decision to own a home.

But the good news, based on figures of Federal Reserve data, shows the answer is a resounding "Yes!"

In the Federal Reserve or Consumer Finances, it was announced that in comparison with renters, home owners have much greater household wealth. A typical owner's wealth exceeds that of renters by a factor of 50-to-1; a median of $205,200 versus a median of $4,200.

The main wealth difference between the two is home equity, of course. But even for households who've only owned their home since 2003, home equity gains are the rule rather than the exception.

Sure, times have been tough for homeowners in many struggling markets. And households in these areas who have owned their home for five years or less do have some negative equity.

Yet, in all 150 markets, including those hardest hit by the recession, households who have owned their homes for 10, 15 and 20 years have enjoyed strong equity gain despite the downturn.

This data clearly shows that homeownership remains the largest store of wealth for the typical household, even when markets have been through some rocky years.