Are you literate in the world of home repairs? Or would you rather enlist the help of a pro? Take the Ultimate Home Repair Quiz and discover your do-it-yourself IQ. And while some projects should be left to the professionals, others can be tackled by the homeowners. How Stuff Works lists five that often come up and entail easy solutions. Here’s what heads of households ought to know:

• Prepping and painting interior walls
• Fixing squeaking and sticking doors
• Using caulk
• Repairing a faucet washer
• Unplugging a clogged toilet

Homeowners with shallow knowledge of the basics need not be alarmed. Online help is readily available at sites like How Stuff Works, the DIY Network, HGTV, and This Old House.

First, the frame can be constructed out of a variety of materials, including aluminum, vinyl and wood. Aluminum is not a practical choice in most areas because the metal conducts temperature and can fluctuate between hot or cold; however, because of its durability, aluminum may be the best option in coastal areas or rainy climates. Vinyl is inexpensive and practical, but may be limited in choice of color. Wood-framed windows provide the best insulation, but they require more upkeep than aluminum or vinyl.

When it comes to glass, the most often selected option is an argon-filled, double-paned window with Low-E glass. To understand a window’s performance, check its energy-efficiency label. The “R” value is the measure of how well it prevents heat from passing through; it ranges from 2.4 to 4.5, and the higher the better. Conversely, the “U” value measures how much heat actually passes through and this number should be low.

Finally, if your windows are not properly installed, they will not perform effectively so be sure to hire a reputable professional.

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Finding the right home is not for everybody. Some want to build the dream house using their specifications. With real estate prices lower than they were five years ago, purchasing land could make sense for those who have the wherewithal.

What are the right questions to ask before signing a purchase contract? Michael Luckado’s “Buying the Land for Your Future Dream Home,” featured in HomeGain, outlines the major categories. The first step is to check out the zoning laws for the land and its surrounding areas. Is the area zoned for residential or commercial? What are the setback requirements (distance between the proposed home and lot lines) and height restrictions?

When zoning checks out, the buyer should contact the Homeowner’s Association, if one exists, and inquire about additional restrictions that may affect the building project. If the green light is still on, look into the availability of utilities. Those that are not easily connected will incur additional costs. For example, if water and sewer are not available, a private well and septic tank will need to be installed. There may also be fees to build (contact the local building and public works department for a list) and maintenance expenses even before breaking ground such as real estate taxes, insurance, sewer and water availability fees, HOA dues.

After completing due diligence on the above items, you may want to consult with an attorney to review the contract. As a rule, a title search on the land is recommended. Before you build the dream house, do the homework. It can make the difference between a poor and prudent decision.

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Choosing where to raise a family is one of the most important decisions for a household with children. Are there standard features a family ought to look for in a neighborhood, community, and town? Not really. The specifics are up to the values and needs of the individual household. Once you determine what you want, it’s time to put the town to the litmus test.

Real estate consultant Barbara Cocoran suggests some practical things homebuyers can and should do before purchasing a home. First and foremost, buyers need to look at the neighborhood and town where the house is located. Too often, buyers develop tunnel vision, focusing solely on the exterior and interior features of a property. Finding the dream house, however, is as much about the community as it is about square footage and floor plan. It’s critical to observe the people who live in the community in real time. Visit the house, neighborhood, and hot spots (playgrounds, local sports activities, and places families frequent) during evenings and weekends.

And if finding quality education is a top priority, Corcoran suggests that buyers check the SAT scores of the local high schools. These standardized achievement tests serve as one barometer of student success. Typically, higher scores translate to better schools and choosier buyers, who purposely seek out properties that will hold their value and increase over time. Are you looking for the ideal community? Check out the video tips at Forbes.com.

And although actions of the Federal Reserve can have a direct impact on the Prime rate, mortgage interest rates are dictated by the trading of mortgage-backed securities, which are similar to bonds and trade on a daily basis. This means that the real dynamic at the heart of interest rate movement is the competitive relationship between stocks and bonds.

Stocks, bonds, and mortgage-backed securities compete for the same investment dollars on a daily basis. There is literally only so much money to be invested. When the Federal Reserve feels that interest rates need to be decreased in an effort to stimulate the economy, this reduction in rates can often cause a stock market rally.

When the market becomes bullish, the money to invest in stocks comes from the selling off of other investments, including mortgage-backed securities.

Unfortunately, when mortgage-backed securities are sold off to fuel stock market rallies, this causes interest rates to go up, not down.

Historically, there have been many instances where the Federal Reserve has increased interest rates, arousing fears that corporate profit margins would be affected. This resulted in stocks being sold off, leading money managers to search for a place to invest their newly liquidated assets until the next market rally. One such safe haven has been mortgage-backed securities, which cause mortgage rates to drop.

The daily ebb and flow of money is what matters most when it comes to the movement of mortgage interest rates. I make it a point to continuously monitor interest rates for my clients and advise them of opportunities to manage their mortgage debt at a better rate. This is the foundation of my business model as a trusted advisor.

If media reports have led you to second guess whether it’s a good time to purchase a new home, give me a call. We’ll analyze your financial situation together and create a plan that’s right for you.

Let’s look at a sample scenario. If you take out a $300,000 mortgage and decide to pay one point in order to lower your interest rate, this would translate into an up-front cost of $3,000. To keep things simple, we’ll assume that paying this one point will save you $50 a month. This means it will take you 60 months to recoup the cost of that point. If you decide to refinance or sell the home before the 60-month mark, your money is lost – not to mention the opportunity cost of not having this money invested elsewhere. In this scenario, you would only benefit financially from paying points if you were to remain in the home for no less than 60 months.

It’s also important to remember that interest rates run in cycles. When rates are at historical lows, it makes more sense to pay points if you plan to live in the home for an extended period of time. If it’s unlikely that rates will go down in the near future, then there will be no need to refinance.

When interest rates are high, however, there is a strong likelihood that they will come down again before too long. Therefore, this is not a good time to pay points. The chances of refinancing in the near future are extremely high, and you will likely not be in the loan long enough to recoup the up-front cost of the points.

Tax deductibility is another thing to consider when choosing whether or not to pay points. For new purchases, interest from both points paid and your mortgage are tax deductible up front. For refinances, however, points are not deductible up front. Instead the deductions are spread out over the term of the loan (unless the entire loan is paid off early), making points more costly in comparison.

Ultimately, there’s a lot to consider when it comes to points and whether or not they are a worthwhile investment. An experienced mortgage professional will work with you to determine the best course of action based upon your specific situation. Request a comprehensive cost comparison to see whether paying points could be financially beneficial to you.

If you or someone you know would like to learn more about points and whether they should be a part of your mortgage plan, give me a call. I would be happy to assist you!

Three homes. Three generations — X, Y, and Boomer. Builder Concept Home 2012 is sponsored by Hanley Wood, a multimedia firm that develops magazines, online publications, exhibitions and conferences, and custom marketing and data services for the construction and building industry.

Homebuyers are invited to take a photo-realistic virtual tour of the Boomer house, which is online starting February 8. The home features a one-level floor plan with plenty of private, common, and outdoor spaces for the older couple who remains active. While the house was conceptualized for baby boomers in retirement, this property is potentially functional for a small family unit, no matter what the age of household members.

This Boomer house seeks to provide comfortable living spaces with the latest design features:

• A covered courtyard for entertaining gives guests direct access to the dining area and connects the two main parts of the house — the bedroom suites and the great room.
• Sliding glass panels are integrated for several of the rooms throughout, allowing easier access.
• The master bedroom suite is complete with a zero-threshold walk-in shower and an adjoining study.
• And the guest bedroom has its own kitchen. It’s perfect for the “boomerang” child, relative, or caregiver who needs a suite of their own.

Model homes for generations X, Y, and B are situated in the Eagle Creek golf course community near Lake Nona, about 30 minutes from the Orange County Convention Center in Orlando, Fla. For those who can’t make it to Orlando, the virtual tour will not disappoint.

Over the past several years, many individuals experiencing economic challenges have relied on the financial and housing help of parents, children, and other family members. According to the Pew Research Center that analyzes U.S. Census Bureau data, 51.4 million Americans lived in multi-generational households in 2009, up from 46.5 million in 2007. But what about individuals or families who provide housing and support to non-relatives? Forbes reports that in some cases, non-relatives may qualify as dependents also, thereby reaping a tax break for the head of household (”When A Housemate Is a Dependent (And A Tax Break)”).

One exemption per dependent can mean a $3700 deduction on an upcoming tax return. So who are the dependents you support? And can you legally report them as such? Here are some general guidelines:

• Parents can claim their children who are under the age of 19 and who live with them for more than half the year. Full-time college students under the age of 24 also qualify as dependents.
• Heads of households can claim a relative or non-relative who is a U.S. citizen, does not file a joint return, and earned less than $3700 in the past year (not including Social Security or disability pay).
• Relatives, such as an elderly parent in a nursing home, are not required to live in the same residence to qualify as dependents, but non-relatives must share the same address as their benefactors.

Refer to the IRS for more information on claiming dependents (”Six Important Facts about Dependents and Exemptions”). Consult with your accountant or tax preparer for additional guidelines.