Interesting exchange. What I don't understand are the numbers getting bandied about. I am a single guy, but still, I added up 2/12 YEARS of water bills-- roughly $770. I shower ever day. I wash dishes. I even had a contractor who once was running the water constantly for nearly a month. I don't understand claims of $1000 a month water bills for a single tenant.

mikez

Posted by: mikez at October 23, 2009 9:08 PM in response to Tenant Leaving Water On

I was skeptical too. But as many of the other commenters have already explained, no matter how they are getting paid-- it can be worth it. I shopped hard for a rate when I bought my house in March 2007. I checked with many local and national banks, USAA (which serves as a sort of military credit union), and some of the national mortgage companies like Ditech. And the best rate I got from all of them was from a Mortgage Broker. It's 5.75%-- over 25 bps below the next best rate I was quoted, and a full 75 basis points below MY everyday bank, HSBC, which tried to convince me that the "extra service" was worth the extra 3/4 of a point. (3/4 extra point for 30 years-- what are they going to do, give me a massage everyday? Pick up my mortgage payments in a limousine. Please!)

Bottom line-- I got the lowest rate, no points, no prepayment penalty -- all through a mortgage broker. I say, "don't count them out". The mortgage was actually through Citimortgage. I never saw any extra charge. I assume, as some of the others have pointed out, that the bank paid the fee.

mike z

Posted by: mikez at October 18, 2009 12:39 AM in response to How Are Mortgage Brokers Paid?

Listen to denton. He/she talks like a lawyer. The way I see it, you just got some free legal advice.

It is your responsibility to fix it. I would add that if you have more time than money, get all the documentation you can (statement from landlady that the door wasn't right, write a VERY NICE letter to the mover detailing how his employees removed the door and did not rehang it properly, take pictures, maybe record the next conversation with mover--be above board about it and inform him that you record such calls for your own personal records, etc). Ask nicely but firmly in a letter to the mover (certified mail and keep a copy) for reimbursement for the cost of having it rehung properly. When he refuses, file complaints with the BBB and Chamber of Commerce, explaining in a very level-headed way what transpired. And sue for reimbursement in small claims court.

But for all the time and hassle, it is not worth it to most people. Even if you get a judgment (and I think you would) then you have to collect it. Just chalk it up to experience and eat the cost of rehanging the door, which of course is your responsibility. And let the rest of us know which mover it was so we can avoid him.

mikez

Posted by: mikez at September 30, 2009 12:27 AM in response to Who is Responsible?

20 years on the Street and a finance degree-- but it really just comes down to common sense--and there is a little bit of guess work. If you get the guess work wrong, don't kick yourself, no one has a crystal ball.

But I figure off the top of my head that you paying around $11-12k interest a year right now. That's 12k that just goes poof. Naturally, you get some tax write-off, but you also must weigh that against any supposed after tax return you would get on an alternative investment. Let's assume you get 4k of that back, so you are currently giving the bank 8k a year. Right now, if you find a 2 year CD that pays 2%, you're probably lucky. After tax, you're talking about 1.5% or less. That comes out to $2,500 a year. So IT IS GUARANTEED that you will save $5500 a year, or more, by paying off your mortgage.

About alternative investments-- there is no COMPLETELY safe investment currently available on this planet that will earn you better than 5.75% (or some after tax equivalent). Personally, I think the stockmarket will go up another 10% in the next few months and Apple stock over 205 a share-- but these investments have risk. DID WE NOT LEARN ANYTHING last year? On the other hand, think of paying off your mortgage. That is like an investment that is a guaranteed 5.75%. Very hard to beat. Maybe in a year or two 30 year Treasury Bonds MAY get there-- that is a huge MAYBE--but they are not 100% safe UNLESS you hold them for the entire 30-years. You can lose much principal if you have to get out before then. And I would bet dollars to donuts that 30-year rates will go up (and therefore prices down) significantly in the couple of years. That means if you buy 30-years, you could lose a lot of PRINCIPAL. Again, these are NOT 100% safe INVESTMENTS.

But for all intents and purposes, A CD is. Could CD rates eventually get above 5.75%? Sure, but don't hold your breath. Banks are not in a big hurry to move those rates up right now. They're borrowing from the Gov. and doing the carry trade until they get their crap together again. Banks are paying you a miserable 1%, or often less, to hold your savings, and loaning it to new mortgages for 5% plus. Or buying Treasuries and pocketing about 3% (tax free, I think). That's a big fat 3% or 4% spread that no one is in a big hurry (read: Fed Res.) to take away from the banks. the Government just bailed a bunch of them out. It's going to keep rates low for a while longer as an insurance policy on THEIR investment. one of the reasons the stockmarket is flying-- companies are going to make money hand over fist because their borrowing costs are going to be super low for another 6 months to 2 years. What kind of idiots would the government be if they poured billions of dollars into companies like AIG and GM, and then raised interest rates on them? Sure the Fed is independent, but Bernanke is on the team, and he is not an idiot.

Bottom line-- chances are pretty low that another 100% safe alternative investment that earns more than 5.75% is coming around the bend anytime soon. If anything with a maturity of less than 5 years earns 6% in the next 3 years, and maybe even 10, I would be pretty surprised.

ps the one very good reason not to pay the mortgage down is if you think that you will have to borrow money again soon for ANY reason-- (personal loan, credit cards, etc). That rate of 5.75% is very good historically. Don't trade it in for a higher one if you don't have to.

And make sure you keep a year or two of funds in something rock solid safe in case of emergency, pay off credit cards and the like IMMEDIATELY, and any other higher interest debt, and then I would pay off the mortgage. Why give the bank?

So, more often than not, paying down debt, ANY kind of debt, is a no-brainer. That alternative investment crap (marginal returns and so forth) is what they taught us in B-School and I swear by all that is Holy that it is a big chunk of the reason we got into the mess we are/were in-- a generation of MBAs taught to borrow every dollar they could until they stopped making more off the investment than the cost of borrowing. One problem professor-- your borrowing costs are locked in! the returns on your investment (read: biz opportunity) are usually not.

Ok, i'm done with my rant

Posted by: mikez at September 16, 2009 10:35 PM in response to Pay Back Mortage or Not?

I found this on TOH: It would appear that moisture content is the biggest concern-- not so much acclimation, per se. Also, the type of wood seems to be a factor. Tom Silva interviews a flooring specialist in this piece, and the installer also recommends a gap on the borders to allow for expansion.

"As for your selection of Brazilian cherry, Hunt says it's a very hard and durable wood, but not as stable as more common hardwoods. Let it acclimate in your house until its moisture content reaches 6 to 8 percent. Also check the moisture content of the subfloor; it should be in the 8 to 10 percent range when the flooring goes down. Finally, your installer should leave a '-inch gap around the perimeter of the room for the boards to expand and contract with seasonal changes in humidity. That's good flooring practice regardless of the species being used." Tom Silva interviewing Hunt for TOH

Posted by: mikez at September 4, 2009 10:26 PM in response to Fire This Contractor?

I have had a lot of experience with contractors. It may be nothing, but I would say "trust your gut." If you think the guy is starting to take advantage of you, then he probably is. I forget which poster it was that said "it starts with the little things," but I agree. On the one hand, be fair. No large job of any kind goes exactly as planned, but if something doesn't feel right, don't ignore it. There have been great pysch. studies about how people react when they get taken advantage of or manipulated. Our first basic reaction usually is that we get a bad feeling in our stomachs. It's not a joke--it's intuition communicating to your conscious mind the only way it knows how--by making you feel physically ill. Stay firm, keep asking questions, and stop the whole process if you have to, until you get a point where it feels right again.

Also: I have always been under the impression that wood floors have to sit in a room for several days before being installed. The reason I've been told makes sense. Wood expands and contracts quite a bit depending on the humidity and temperature. If you want a great example, come to my house during the winter, then come back during the summer. One season every door in the house sticks, then in the next season, they all close perfectly. That means that if you install all of the flooring while it's contracted, and then it expands when it begins to acclimate IT WILL BUCKLE. I have seen this happen with parquet flooring.

But don't take my word for it. Check out the THIS OLD HOUSE website (an independent opinion). Ask around. Get every written guarantee you can manage out of this guy, and NEVER NEVER NEVER pay most or all of the money until that last nail is nailed. Once there's just a couple of thousand left in a big job like that, many--not ALL--but many contractors lose interest. They've already been paid. My final advice, act like a human being. Be fair, and think results more than process. But also, think like a lawyer. Think about what evidence you will need to convince a judge if things don't go right. If this guy says putting the floors down in "X" number of days is ok, ask to get that in writing. Do it like a human being-- you still have to work with this guy, so honesty goes a long way. For example, you can say-- " I trust your expert judgment, but I am concerned as it says on THIS OLD HOUSE "xyx". Since I am uncomfortable, it would go a long way towards making me feel better if I could get that in writing." If he is a scrupulous contractor, he will not mind guaranteeing his work. Take pictures along the way. If details change and they if are not "material changes", the court usually won't care, so if after some research you think you are getting cheap quality tiles after you shook on a deal for more expensive ones-- put it in writing between both of you (both sign) that you insist on XYZ tile before they go down, otherwise a court may look at the change and say it's not a big deal. IF IT IS A BIG DEAL TO YOU, then that has to be expressed up front and clearly, or a court will probably side with the contractor.

I say these things with the hopes and sincere expectations that everything will go well. It probably will. Nevertheless, hope for the best, and plan for the worst.

good luck

Posted by: mikez at September 4, 2009 10:10 PM in response to Fire This Contractor?

Brownman seems to have the ticket. I have been thinking about hanging a very heavy mirror on a plaster wall for some time (over 50 pounds) and have come to this singular conclusion-- if you're really worried about the item falling, you've got to hit brick. What we're dealing with are three layers of material. First, a good old fashioned red brick wall. (When you get down to it, that's all these Brownstones are-- brick boxes). On top of that brick is fastened wooden straps and lathe (not very sturdy) and on top of that, the plaster. Unlike drywall that is mounted on fairly large wooden studs, the plaster/lathe sandwich is fairly slim and very tight to the brick wall. I would only hang the lightest and not very valuable items onto fasteners that only bite into the plaster or lathe. I'm thinking that if it's permanence and piece of mind that you want, you've got to think like the third little pig and go all the way to the brick (using the necessary expansion bolts as Brownman suggests). When you vacate the place, just fill in the holes in the plaster with joint compound and paint. Good luck.

Posted by: mikez at August 7, 2009 12:22 AM in response to Mounting on Plaster Wall?

If you are worried about unkeying the plaster either from age or the close proximity of the screws in the probably smallish mounting flange, consider buying or making a solid wood medalion or rossette a bit larger than the item to be mounted. mount the medalion using the mollys. Counter sink the screws if you like and plug the holes. Use longer (I would use a 2-1/2" screw if you have a 3/4" thick rossette) screws than usually come with the molly kits to be sure you are not just pulling on the plaster (it can be thick). Once mouunted, mount the guitar holder to the medalion using suitable screws.

I use a variety of similiar methods, including wood cleats, whenever I am mounting something large, heavy, or valuable and i wish to disperse the load over a larger area than the object itself. I have never had anything come down.

Call me if you have any questions or need alternatives. If I have a few minutes, I won't mind sharing what I know.

Steve
www.thetinkerswagon.com

Posted by: thetinkerswagon at August 9, 2009 11:48 AM in response to Mounting on Plaster Wall?

Sorry, I overlooked the part about the brick behind the lath when I posted earlier. Drill the holes deep enough to accomadate any mollys and screws. Truthfully, the mollys - if they extend into the brick, should do the trick. You may have to toss the mollys and screws they provided though and get something better.

If the plaster and brick start to crumble when you drill and won't support the mollys, use some epoxy and set the mollys in the epoxy. let it harden and then go into the mollys with the screws.

again, feel free to call,

Steve
www.thetinkerswagon.com

Posted by: thetinkerswagon at August 9, 2009 11:58 AM in response to Mounting on Plaster Wall?

I found this on TOH: It would appear that moisture content is the biggest concern-- not so much acclimation, per se. Also, the type of wood seems to be a factor. Tom Silva interviews a flooring specialist in this piece, and the installer also recommends a gap on the borders to allow for expansion.

"As for your selection of Brazilian cherry, Hunt says it's a very hard and durable wood, but not as stable as more common hardwoods. Let it acclimate in your house until its moisture content reaches 6 to 8 percent. Also check the moisture content of the subfloor; it should be in the 8 to 10 percent range when the flooring goes down. Finally, your installer should leave a '-inch gap around the perimeter of the room for the boards to expand and contract with seasonal changes in humidity. That's good flooring practice regardless of the species being used." Tom Silva interviewing Hunt for TOH

Posted by: mikez at September 4, 2009 10:26 PM in response to Fire This Contractor?

About hardwood flooring acclimating...

Printed instructions are assuming new construction in large lots drop shipped from the"sticks". If this flooring came from a local vendor, it has already warmed or cooled from it's factory of origin.

We used to get pallets in from Tennessee in the winter that had been sitting outside and were frozen through and through. They would have to sit in a heated space for a week before the center would thaw. This is primarily what the warnings are about, NOT your situation.

I would be greatly interested in the installation quality. Are they discarding bad boards (and every lot has some) or is it being installed willy nilly. Are they opening a bunch of bundles and mixing them? Are all the bundles from the same lot?

Other issues than the time they sat on your job are far more important. How about do you like the way it looks? It's not to late to change your mind, now's the time to love it or leave it.

To ease your mind have someone who knows construction (not all architects do) do a walk through casually while his guys are working. I can tell in 5 minutes if they are "challenged" or experienced. What you don't want is a laborer doing finish carpentry.

Good Luck

bruce

Posted by: brucef at September 5, 2009 1:11 AM in response to Fire This Contractor?

Yes, I know nothing about installing flooring, but Bruce addressed a question that came to my mind right away: doesn't it matter where the wood has been sitting prior to your house? If it's down the street in the same climate, then why would it have to acclimate again? Sounds like some of these rules are too simplistic and rigid. (Don't mean to be commenting on your situation here; just a general statement about some rules that for people outside the industry can be confusing.)

Also tangential, but important to ME: Not helpful to correct OP's misspelling. That's just a cheap shot.

Posted by: Nomi at September 5, 2009 2:48 PM in response to Fire This Contractor?

If I ran my business the way the contractors I have worked with ran theirs I would be out of business fast. So I agree with you that this whole 'bait and switch' attitude is really annoying and worrying. It reminds me of my (bad) experience with my contractor - I felt like I was being pushed all the time to see what he could get away with, the more little things I let slide the more bigger things started to slide. And the contractor 'doing you a favor' is BS. I don't buy that for a moment. In fact it would make me question the real value of everything else we had bid prices on.

Don't let him away with anything else, you have to be a pain in his ass every time he pulls more of this 'say one thing / do another'. If you don't stand up for yourself now your contractor is going to do things the way he wants to do them, not the way you want him to do them.

Posted by: sjcg at September 5, 2009 5:19 PM in response to Fire This Contractor?

Sounds like the guy just spoke too soon. And pretty much all parties lack experience. The wood is not from Prospect Park.

Posted by: jack slade at September 7, 2009 12:06 AM in response to Fire This Contractor?

Dam Fool

Posted by: OldManSam at September 8, 2009 2:11 AM in response to Fire This Contractor?

Thank you to everybody who contributed to this thread. I genuinely feel like I learned something about inflation's effect on home owners and their mortgages.

Posted by: thecomputerguy at September 17, 2009 1:07 AM in response to Pay Back Mortage or Not?

Wow! I just came back to this site after posting my original question. Thanks you so much,everyone, for your thoughtful responses. Thanks,especially, mikez for your detailed response. I tend to agree with you! I also liked the idea of a spread sheet. Thank you very,very much everyone!!!

Posted by: momolito at September 17, 2009 8:10 PM in response to Pay Back Mortage or Not?