Interest Rate Update

30 Year Fixed up to $417,000 3.25% to 3.50% 30 Year Fixed “Agency” up to $625,500 3.25% to 3.50% 30 Year Fixed FHA up to $417,000 3.0% to 3.25% 30 Year Fixed FHA “Jumbo” up to $729,500 3.25% to 3.50%

Magazine Rack

For simple magazine storage that’s easy to make, build this solid-wood rack from a single board.

Step 1. Cut to length the shelf (A), bottom support (B), top support (C), and the bottom support cleat (D). Sand the parts using first medium and then fine sandpaper.

Good to Know: If you don’t have a saw that can handle 11-1/4"-wide boards, have a Lowe’s associate cut your parts to length in the store.

Step 2. Trim the cleat to 9" wide. Through one face, drill and countersink three evenly spaced 1/8" pilot holes. Rotate the cleat to an adjoining face. Vary the spacing slightly and drill and countersink three 1/8" pilot holes so that the sets don’t intersect each other.

Step 3. Glue and clamp one face of the cleat (D) to the underside of the bottom support (B) – center it edge to edge with the cleat edge flush with the support end. After the glue dries, reinforce the joint by extending pilot holes from the cleat into the bottom support and driving three #8 x 1-1/4" screws.

Step 4. Mark the top face of the shelf (A) 12" from each end to find the center 3/4". On two scraps with straight edges about 12" long, cover one face and edge with painter’s tape. Clamp the scraps along your centerlines with one taped surface against the shelf and the other taped surface facing the opposite scrap. Glue and clamp the top support (C) to the shelf using the scraps as a guide to keep the support square. After the glue dries, support the shelf on spacers cut the length of the top support and drill four countersunk pilot holes through the back of the shelf into the top support. Drive #8 x 1-1/2" screws to support the glue joint.

Step 5. Glue and clamp the bottom support and cleat (B/D) to the bottom of the shelf (A) with the support in line with the top support (C). After the glue dries, extend the cleat pilot holes into the shelf and drive three #8 x 1-1/2" reinforcing screws.

Step 6. Finish-sand the completed rack and wipe away the dust. Apply two coats of finish following the manufacturer’s instructions.

Color Block Wall Art

Step 1: Measure and cut 4'x4' birch plywood into six 15"x24" pieces. 

Step 2: Use painter’s tape to mask off the edges of each board. (We left a 3" border on all four sides.) Tape across the middle of each board to create the upper 9" square. 

Step 3: Paint the upper squares using colors of your choice. Let dry.

Step 4: Remove the tape across the middle and reposition to create a 9" square on the bottom of the board. 

Step 5: Paint the lower square. Let dry.

Step 6: Remove all tape. Seal the board with a water-based Polycrylic finish. 

Step 7: Center a self-leveling picture hanger on the back of the board and hang.

Mortgage Update

30 Year Fixed up to $417,000 3.25% to 3.50% 30 Year Fixed “Agency” up to $625,500 3.25% to 3.50% 30 Year Fixed FHA up to $417,000 3.0% to 3.25% 30 Year Fixed FHA “Jumbo” up to $729,500 3.25% to 3.50%

3.8% Tax on Housing? Answers & Resources

Here are the 10 Things You Need to Know About the 3.8% Tax according to theNational Association of Realtors (NAR):

1.) When you add up all of your income from every possible source, and that total is less than $200,000 ($250,000 on a joint tax return), you will NOT be subject to this tax.

2.) The 3.8% tax will NEVER be collected as a transfer tax on real estate of any type, so you’ll NEVER pay this tax at the time that you purchase a home or other investment property.

3.) You’ll NEVER pay this tax at settlement when you sell your home or investment property. Any capital gain you realize at settlement is just one component of that year’s gross income.

4.) If you sell your principal residence, you will still receive the full benefit of the $250,000 (single tax return)/$500,000 (married filing joint tax return) exclusion on the sale of that home. If your capital gain is greater than these amounts, then you will include any gain above these amounts as income on your Form 1040 tax return. Even then, if your total income (including this taxable portion of gain on your residence) is less than the $200,000/$250,000 amounts, you will NOT pay this tax. If your total income is more than these amounts, a formula will protect some portion of your investment.

5.) The tax applies to other types of investment income, not just real estate. If your income is more than the $200,000/$250,000 amount, then the tax formula will be applied to capital gains, interest income, dividend income and net rents (i.e., rentsafter expenses).

6.) The tax goes into effect in 2013. If you have investment income in 2013, you won’tpay the 3.8% tax until you file your 2013 Form 1040 tax return in 2014. The 3.8% tax for any later year will be paid in the following calendar year when the tax returns are filed.

7.) In any particular year, if you have NO income from capital gains, rents, interest or dividends, you’ll NEVER pay this tax, even if you have millions of dollars of other types of income.

8.) The formula that determines the amount of 3.8% tax due will ALWAYS protect $200,000 ($250,000 on a joint return) of your income from any burden of the 3.8% tax. For example, if you are single and have a total of $201,000 income, the 3.8% tax wouldNEVER be imposed on more than $1000.

9.) It’s true that investment income from rents on an investment property could be subject to the 3.8% tax. BUT: The only rental income that would be included in your gross income and therefore possibly subject to the tax is net rental income: gross rentsminus expenses like depreciation, interest, property tax, maintenance and utilities.

10.) The tax was enacted along with the health care legislation in 2010. It was added to the package just hours before the final vote and without review. NAR strongly opposed the tax at the time, and remains hopeful that it will not go into effect. The tax will no doubt be debated during the upcoming tax reform debates in 2013.

Chalkboard Serving Tray

Update a vintage tray with chalkboard paint. Coat the surface and start writing. Use this upcycled tray to identify food, organize home office supplies, or share events with family members.

Step 1: Pick up a large tray at a garage sale or thrift store or find one collecting dust in your home. Clean and dry it. 

Step 2: Paint the surface of the tray with chalkboard paint according to the manufacturer’s instructions. Apply additional coats as needed and let dry completely between each coat. Now your tray is ready for serving or organizing.

Most Common Pricing Mistakes