House Calls

Society of Professional Issue 11 • Volume 7 • November 2003

Real Estate Inspectors Ideas, Information and Humor from your Home Inspection Professional.

WHY YOU SHOULD CONSIDER A SHORTER MORTGAGE PERIOD

WHEN YOU REFINANCE
Low interest rates have home owners considering a refinance for a shorter period.
A 15-year mortgage results in somewhat higher monthly payments, but the savings
on interest over the life of the loan are surprising.

A worrisome stock market has convinced many people that it would be better to
invest in their homes right now. They might add money from other sources, such as
their 401(k)s, and refinance for a lower rate and a shorter period.

Another homeowner might want to take money out of the house for education, a
wedding, or a vacation home, and refinance a higher balance. Either way, here’s an example of how it could work:

• A $100,000 15-year mortgage at 6% interest with payments of $801.67 per month. Total payments over 180
months come to $144,300.60, meaning that just $44,300.60 was interest.

• A $100,000 30-year mortgage at 6.5% interest with payments of $632.07 per month. Total payments over 360
months come to $227,545.20, meaning $127,545.20 was interest.

Note that the difference in monthly payment was only $169.60, but saved $83,244.40 in interest. If you consider
the savings per month on the 15-year loan, they come to about $462 a month.

To be sure, many people are staying with the 30-year mortgages, especially homeowners who have been stung by
the troubled stock market. •

HARLEY AT 100: HAPPY BIRTHDAY TO THE ‘HOG’

America has al
alww ays ggone
one ho g-wild ffor
hog-wild or the Har le
leyy.
Harle
And after 100 years, the cycle invented by William Harley and Arthur Davidson is
still one of the best business success stories.
Harley-Davidson has started a 14-
month bash to celebrate its 100th
birthday. They’ll be driving those hogs on
a 10-city international tour that began in
Atlanta in July and will go through
America, Mexico, and Germany, ending
in Milwaukee in August 2003. A quarter
of a million customers plan to be there,
making that trademark Harley motor
music: Potato-potato-potato.

No American company has such

devoted customers. While Honda sells
more bikes, Harley is king of the heavy market.

The company was bought by AMF in 1969. By 1981 it was struggling,

partly because of Japanese imports. So 13 of the company’s executives
bought it for a highly leveraged $82 million. Twenty years later, sales
(Continued on Other Side)
 HARLEY (Continued From Front)
were $3.3 billion and earnings $435 million, all because
of passionate motorcyclists like those who descend each NOVEMBER 19, 25TH GREAT
August, 300,000 strong, on Sturgis, S.D.

The Harley culture runs deep. Demand so much exceeds

AMERICAN SMOKEOUT: HERES HOW TO QUIT!
supply that scalpers sell new bikes for up to $4,000 over You know that in order to do a job right, you have to have
list. Some people sell their places on the waiting list. the right tools. The American Lung Association says there
are excellent tools for smokers who want to quit today.
Harley dominates the high-profit market for heavy bikes, One-third of smokers try to quit each year, but few take
even in Japan, and has 21 percent of the Asia-Pacific advantage of these effective tools.
market for all motorcycles. In the U.S. 650,000 people Counseling helps smokers identify cues that trigger
pay $40 annually to be members of the Harley owners cravings. It shows how to anticipate cues and rehearse
group. coping strategies. For example, those who smoke after a
meal could sidestep cravings by beginning an activity that
“Worldwide,” says Bleustein, “motorcycling means is unrelated to smoking and eating. Nicotine replacements
freedom, adventure, and individual expression.” • can also help.
•The nicotine patch provides a dose of nicotine for 16 to 24 hours.
•Nicotine gum increases blood nicotine within 20 minutes, and lasts two hours.
•Nicotine nasal spray or inhalers are prescription products that increase blood
nicotine within a few minutes, but can irritate the nose, throat, and mouth.
Bupropion, sold as Zyban and Wellbutrin, is available by prescription. You start it one
to two weeks before cessation. But doctors reporting in The New England Journal of
Medicine find that combining these products with nicotine replacement therapy
does not improve success rates.
Doctors at the Mayo Clinic say these behavior changes may help you stay smoke
free:
1. Manage stress. Learn alternative effective ways to manage stress, and you are more likely to remain smoke-free.
2. Avoid triggers such as visiting on the phone or drinking alcohol.
3. Make your home smoke-free. If others in the home smoke, try to designate certain areas for smoking.
Why not try it for a day? As the American Cancer Society says, if you quit for a day, you could quit forever. •
We appreciate your business and the confidence that you have in our inspection services.
Please feel free to contact us for any further assistance for all of your inspection needs.
Once more thanks for giving us the opportunity to serve you.
House Calls contains basic information on homes as well as topics of general interest. Due to a wide variety of differences
in most homes, any suggestions and recommendations require further evaluation by appropriate tradespersons.
House Calls is published monthly by the Society of Real Estate Inspectors (SPREI™),
and is brought to you by you r local SPREI home inspection professional.
© 2003 All material is copyright protected. Only current SPREI members may copy and distribute this newsletter.
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