WPCNR CITY HALL CIRCUIT. From The Mayor’s Office. June 23, 2008: Mayor Joseph Delfino is pleased to announce that the City of
Ryan’s Bypass Surgery Completed. Doctor is “Pleased”
WPCNR COUNTY CLARION-LEDGER. From Board of Legislators Communications. June 23, 2008: Betsy DeSoye, Director of Communications for the County Board of Legislators told WPCNR this afternoon that County Legislator Chair Bill Ryan, scheduled for bypass surgery today had gotten out of surgery and that his doctor was “pleased” with how it went. Asked how long Mr. Ryan’s convalescence would take, DeSoye said that was not clear how long it would be before Mr. Ryan returned to legislative action.
Chair of County Board of Legislators Bill Ryan at the Juneteenth Parade.
Con Ed Hikes Lectric rate 93% in 6 Months. June Juice up 56%. Supply Cost Blamed
WPCNR THE POWER NEWS. By John F. Bailey. June 23, 2008: Con Edison reported to WPCNR last week that White Plains and area electric customers rates per kilowatt hour would increase 56.4% in customers’ June bills arriving in mailboxes shortly.
The cost per kilowatt hour in May was 18.08 cents per kilowatt hour, made up of 11.06 cents for Con Edison purchase of electricity for us, and 7.02 cents for the infrastructure delivery charge. Con Edison spokesperson Joe Petta reported that in June bills the cost of electricity would rise to 16.2 cents and the cost of delivery to 12.1 cents, totaling 28.3 cents per kilowatt hour.
58% In January. Another 58% in June for Electric Supply.
Six months ago, the December KWH charge was 8.34 cents and the delivery charge was 7.1 cents for a total of 15.4 cents. In January 2008, one month later, you paid 13.2 cents per kwh for Supply and 5.2 cents for delivery, an increase of 20% overall – but a 58% increase in the cost of electricity.
In June you will pay 16.2 cents per kwh hour for Supply and 12.1 cents for delivery, Your total charge per kilowatt hour has gone from 18.4 cents to 28.3 cents. Your charge per Kilowatt hour is up 54%.
In terms of dollars it is startling. In December, just six months ago, using 906 Kwh hours, an acquaintance in White Plains was charged $76.32 for Supply and $64.05 for $139.61. In June if that person uses the same amount, 905 hours, they will pay $256 – a $116.88 increase in dollars – an 84% increase in real dollars.
Rates up 73% in One Year
In contrast, last May 2007, when the KWH Charge was about 16.4 cents per kilowatt hour, a person we know used 1,107 KWH Hours and paid $207.79. ($183 when you take away sales tax and adjustment) Had they used 906 hours, they would have paid $148. This year they will roughly pay $256 – the electric bill in dollars has gone up 73%.
Beware the Summer Demand Facing a 96% Rate increase. 10 Cents More Per KWH
However, in June the heat comes in, and this year’s rates are going to kill the average citizen cooling their home. A person I know, used 1,504 KWH last June, about 400 more KWH than in May. The June bill last year soared to $310, $100 more than last May’s $208.
If Mr. and Mrs. White Plains do not conserve, their bill will go commensurately higher. Should that person use 1,504 KWH hours this June they will pay about $425 for the same amount of electricity (and don’t forget to add the sales tax!). That is a year to year increase of 37% in dollar outlay. Last June the cost per KWH was about 17.5 cents this year it is 28.3 cents, and increase of 61%.
The Delivery charge is the cost of “maintaining” the system, with recent delivery increases approved by the Public Service Commission.
Mr. Petta, the Con Edison spokesperson told WPCNR when asked if this was a direct result of the runup in the price of crude oil, gas and other fuels, last week, he said the increase is “a blend of long and short term contracts suppliers purchase” that Con Ed enters into to buy electricity. Asked if the kwh rates would continue to rise sharply due to the increase in the price of crude oil recently, or stablilize continuing into the fall and winter months, Petta said the company could not at this time answer that question.
Buying Homes in White Plains Today From The Man Who Makes the Mortgages
WPCNR QUILL & EYESHADE. John Bailey Interviews Bob Meyerson.
Asked how the
He said larger real estate firms in the
In the
He said that lowering the price on a higher-end home does not necessarily mean it will sell faster. Upper end mortgages are harder to come by. The right buyer is out there but there are fewer qualified.
The Jumbo Problem
Meyerson explained that mortgages on homes priced at $400,000 to $800,000 range are routinely sold to the secondary market while most larger banks continue to service them. However, mortgages (jumbo mortgages) over $729,000 and up are not as attractive to the secondary market as the loans sold to Fanny Mae and Freddie Mac
He said banks are not eager to make mortgages for a million to $2 million any more. He said this is a factor that keeps homes priced over a million dollars from selling quickly. He noted that a client of his had gone to contract on a property, but could not sell his present house in time for the close of his new residence. Fortunately, Meyerson said, other buyers were interested in purchasing the new property for more money, and his client was let out of the contract. Liers Loans (State Income) for Jumbo Loans, if they exist are more expensive.
Timing is Everything.
Meyerson warned a homeowner cannot expect a quick turnaround and needs to have a strategy for the transition period from the time of sale to the time of purchase. This could take many months of being homeless. He recommended selling a home first, then looking for a home to buy, and be prepared to be homeless for a number of months after you sell, living with relatives, at a hotel, or renting another home. He warned that finding a house you want first and going to contract can lead to “financial suicide” in today’s market because you may end up carrying two mortgages.
Gone are the sell-in-the-morning, buy-in-the afternoon days, Meyerson said.
He said the first-time buyer of a home has to have good credit, but better ‘good credit’ than previously. He noted that the first-time buyer needed to keep his credit card debt below 50% of the credit card maximum credit lines. Bills have to have a history of being paid promptly. He is looking for credit scores of 660. Some loans can be written as low as 580.
The DEBT Ratio: PITI
Another factor in landing a mortgage, is the Debt to Income ratio: PITI is the total of Principal, Interest, Taxes and Insurance. When you compare PITI to Income. the ratio should be no higher than 33%. When you add in the existing borrowers debt into the ratio Meyerson said ideally lenders want this ratio to be under 45% of total income.
First Home Seekers
Meyerson advised those seeking a first home in
He pointed out that a decent house in
Preparing for that First Buy
Meyerson said his firm Wachovia is making loans but as noted previously, credit standards are higher. He encouraged paying down debt before taking on a first mortgage, and to pay as much down on a first home as possible. He did not advise a commitment that placed too great a burden on the owner, and not to overextend themselves.
Foreclosures and White Plains
Meyerson said in his experience in
He said the financial problem occurs (foreclosure) when a borrower is in the subprime level of mortgages. Normally in a variable-rate mortgage that the homeowner can no longer afford. These loans become unaffordable when they start to adjust past the initial fixed rate period of 2 to 3 years. Many of these mortgages start out when a borrower comes to a mortgage broker and wants to purchase a home with no money down and has to finance the closing costs into the mortgage.
From day one they are 6% under water.
The borrowers are normally put into a 2 or 3 year adjustable mortgage with the instructions to fix or keep their credit scores in good shape. The borrower also hopes that home prices will continue to appreciate.
The perfect storm hits when the adjustable mortgage starts to adjust to levels the borrower can no longer afford. In today’s real estate market many home prices have dropped 10 to 30% and if the lending institution could find another mortgage for the borrower they would not have the capital to make up for the new lending values on the home.
Most people also have not heeded the credit warnings and have not kept their credit scores up to the new requirements. In the end the borrower with no equity in the home becomes a victim of foreclosure.
Meyerson does not see this as likely to happen in
White Plains Property Taxes and the Market
Asked if property taxes in White Plains were a problem for persons who own in White Plains, Meyerson offered the opinion that the city, county and school taxes were high, (about $13,000 for a median home — $700,000, WPCNR notes), but relative to other communities, taxes are not as high and that White Plains is a “stable market,” that is attractive with good schools.
Meyerson has suggested to the City of
Selling
He said that persons wanting to sell their home have to first present their homes well: sprucing up the exterior, removing “clutter decorating” from the interior, and repainting the interiors if needed, and executing repairs. (WPCNR is taking notes.)
Talking with Mr. Meyerson, it seems as if nothing has really changed in 40 years. Houses were always impossible to afford for the starting out couple.
If you have a good house to sell you can sell it. If you want to buy a home, condo or coop for the first time on a mortgage, you have to make a sacrifice: get your debt down, save money, and show good or better credit history and management. You simply have to make your numbers better to the lender. There is no shortcut to your dreams. It is hard work. Hard choices. Sacrifice.
And as far as overly attractive mortgages are concerned, Alicia Nugent’s song says, “If it sounds too good to be true. It probably is.”