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Spring 1997 Remodeling Tips |
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Coastal Launches Internet Web Site
Financing Your Home Improvements By Using Future Value
Having It All...Pool Houses
How Do You Measure Your House?
Floor Coverings: Lovely Laminates
Coastal Launches Internet Web Site
Coastal Builders has recently published a new site on the World Wide Web. The site features several “pages” including a Profile of the company and some of the Management at Coastal, along with articles about remodeling and letters from our customers. There is a “Links” page to help you surf to other informative sites dealing with remodeling. Soon we will be adding photographs and profiles of some of our Projects , as well as new articles about remodeling. We invite you to check out the site at: coastal.html. Send us an e-mail and let us know what you think. (rcampbell@coastalbuilders.com, or hit the link on the web site) You can also contact us by e-mail if you would like to talk to us about a project.
Our experience has been that many banks do not give good service on loans for the purpose of remodeling because they consider them “too small”. This month our back page features an article by Debbie Leypoldt of First Mariner Bank about financing your remodeling project. A number of our clients have worked with Debbie to finance their projects and have found First Mariner to be a great bank to deal with when it comes to remodeling. We hope you find the article to be informative and we encourage you to call Debbie if you have any questions on financing a remodeling project.
John M. Watts ,
President, Coastal Builders, Inc.
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Financing Your Home Improvements By Using Future Value
by Debbie Leypoldt
Want to build an addition but need to finance more than your home is worth? Now you can build that addition or renovate your home and finance the improvements with mortgage financing that considers the value of your home “as completed”. The homeowner provides the lender with the builder’s contract, plans and specifications of the improvements. An appraisal is prepared by evaluating the market value of the property including the future improvements. The amount of the loan is determined by the loan to value, or the Amount Financed in relation to the Appraised Value. You can borrow much more on fix-up projects than ever before. In some cases you can borrow as much as 95 percent of what an appraiser says the property will be worth when the project is complete.
This creative financing program allows the lender to offer a “One Time Closing” to the homeowner. When the borrower’s overall qualifications have been evaluated, and the feasibility of the loan request has been reviewed, the loan process begins and funds are typically available within 20-30 days. If there is a mortgage on the property, it is rolled into the loan at closing.
Construction funds are disbursed according to a draw schedule, prepared by the lender and approved in advance by the homeowner(s) and builder. Funds are distributed after a satisfactory inspection of the home has been made by the bank, and work is completed as specified for each construction draw. After the final draw is disbursed, the construction loan modifies to the pre-determined Permanent financing program of the homeowner(s) choice. If the borrower wants to reduce the loan amount at modification, the permanent loan can be lowered by applying a lump sum to the principal amount due.
Consider this actual loan that recently closed by a local bank specializing in “as completed” rehab financing:
A borrower owned a home valued at $200,000- that needed improvements to bring the property up to neighborhood standards. The cost of the renovation was $35,000 and the property appraisal reflects a future value of $250,000. The lender was able to provide financing for the renovations based on the projected value. Their existing $180,000 mortgage was included in the loan proceeds and they borrowed $225,000, which included the closing costs.
Interested in more information about this innovative “One Time Construction/Renovation/Permanent Loan”? Ask for Richard Campbell , Sales Manager, COASTAL BUILDERS, (410)461-9908, or call:
Debbie Leypoldt
Assistant Vice-President
1st MARINER BANK
1801 S. Clinton St.
Baltimore, MD. 21224
CALL: 1-888-561-BANK
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Having It All...Pool Houses
Have you ever taken a refreshing dip in the pool and then all of a sudden gotten an urge for your favorite beverage--only to realize that you would have to drip through the white-carpeted living room to reach the refrigerator? Or have you ever been to a swim party where the pool looked great, but you didn’t come in your bathing suit--and there was no convenient place to change? So you just stayed out of the water. Much consideration goes into selecting and designing a pool; however, equal attention needs to be placed on the other structures built around the pool and to the relationship of the pool facilities to the existing home.
The photo on page one is an example in which the architect matched the style of the main building, a 12,000 sq. ft. Greek Revival house built of stone, in placing and choosing the style of the pool structures. Note the symmetry and classical detailing of both pool and the pool house, which features columns and classical lines. People who use this pool will enjoy the balanced beauty of their surroundings.
Function is an important element of good design. As you plan your pool structures, think about the uses that will be made of the pool environment.
The design for the pool facility pictured on this page took into consideration the owner’s lifestyle and included an exercise area, bathroom with shower, changing room, bar, deck, and even a garage for the owner’s beloved sports car!
You may also want to consider a kitchenette near the pool for entertaining. If the pool is outside, people appreciate shaded areas for relaxing and eating. The pool house could include play space for children away from the poolside, but close enough for supervision.
Throughout the entire area, care needs to be given to selecting building materials. Everything will be exposed to water at some time, so use materials which are water resistant. Floor surfaces, even those away from the pool, need to be carefully considered. Water on a smooth surface can be treacherously slippery, but a rough surface can tear up bare feet. A good compromise is necessary.
Thoughtful planning must go into the building of enclosed swimming pools--or you will be looking at expensive repairs in the near future. Water is the greatest threat to most building materials, and the environment of an indoor pool is naturally humid. The pool above used a forced air heating, cooling, and ventilation system with special mechanical equipment designed to remove the excess humidity. This ensures comfortable indoor conditions and prevents deterioration of the building’s finishes, as well as the Douglas Fir walls and ceiling.
Owning a swimming pool can be enjoyable if careful thought is put into its surroundings and structures. You don’t have to “just make do” with your pool, you can have it all!
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How Do You Measure Your House?
When you ask the question “How big is my home?” you expect to get a good solid answer.
Well, maybe you will--maybe you won’t! It all depends on how you measure it.
It’s not only you, but builders, architects, realtors, and tax assessors who are greatly interested in the answer to that question. In the past, each one may have given you a different answer.
Because of confusion resulting from this situation, the American National Standards Institute (ANSI) developed and approved last year a new voluntary standard for measuring homes. A few of the major provisions of this standard include:
Measure from the exterior face of the outside walls.
Include only finished areas.
The user of the standard must make a clear distinction between above-grade finished square footage and below-grade finished square footage. A level is below grade if any part of that level is below the grade line.
Openings in floors cannot be included, but stair treads are included.
Ceilings must have a height of at least 7 feet except under stairs, beams, and sloping ceilings.
Garages are never considered finished but can be calculated as unfinished square footage.
If you are interested in obtaining more information about this standard, you may contact the NAHB Research Center, Inc. in Maryland (301-249-4000).
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Floor Coverings: Lovely Laminates
Laminate flooring was invented 15 years ago by a Swedish manufacturer of laminated products. The product was given the trade name Pergo® and quickly spread through Europe. In 1994, the company, Perstorp, built a factory in the U.S. and during the past three years laminate flooring has been making major inroads in the U.S. hard floor market. With Perstorp’s success, other American companies like Armstrong, Bruce Floors, Formica, and Wilsonart are now joining the laminate flooring bandwagon. The World Hardwood Association expects laminate flooring to capture 18% of the hardwood flooring market in the U.S. by the year 2000.
Looking at the materials before laminate flooring is installed, one finds it hard to believe that this newest and hottest upstart in the flooring market can satisfy all the claims made for it. It’s only a flimsy-looking 1/4” thick strip of wood 4 feet by 8 inches. Its magic, however, lies in a thin coating of laminate placed over top the wood-based core. This laminate provides an amazingly durable wear surface which protects the decorative layer in which the design is embedded.
After the planks are fit together, glued, and set on a foam underlayment cushion, the final look and feel is on solid flooring. In many ways, laminate flooring matches the beauty of natural wood; however, it doesn’t have quite the same 3-D visual depth.
In addition to having the appearance of a natural material, laminate flooring is very durable due to its high-pressure laminate surface. Of Pergo it is said that the high-finish surface is approximately 20 times stronger that a typical laminate kitchen countertop. As a result, the surface resists moisture, stains, burns, impacts and indentations from high heels, furniture and appliances.
This Old House hosted a forum on the Internet entitled “Pergo Floors.” A participant, Geoff Shepherd of Woodlinville, WA, debated its advantages and finally decided to use it in his own home. He found the following points convincing:
Very durable. Should considerably outlast wall-to-wall carpet. Won’t dent or fade. 15 year warranty.
Nice looking, very easy to care for. Damage can be repaired.
Only 1/4” thick - won’t raise floor significantly.
Does not damage the sub-floor.
Excellent track record in Sweden (15+ years), and IKEA’s showroom floors still look good.
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