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Clever Ways To Reduce Household Water Usage

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EPA water usage chartHow well do you conserve water?

The government’s EPA estimates that the average family of four uses 146,000 gallons of water per year, at a cost of $700. With just a few small changes, however, that cost could drop by as much as 28%.

You’ll save on more than just your water bill, too. You may save on Minneapolis/St Paul taxes.

This is because water management is often handled at the municipal level and as water usage grows, so does the need for costly investment in water treatment and delivery systems. Less usage means lower costs.

You’ll also enjoy lower home energy bills. 25 percent of a home’s energy bill is used to heating water for home use.

So, with the above three benefits in mind, here are three ways to cut your household water usage.

Catch Your Shower Water

Nobody likes to step into a cold shower, and we sometimes run our showers for 5 minutes before stepping in. Even with today’s low-flow shower heads, that’s 10 gallons of water wasted. Instead of allowing pre-shower water to run down the drain, catch it in a bucket, instead. Then use the bucket to water house plants and your garden.

Stop Pre-Rinsing Dishes

Today’s dishwashers are heavy-duty food busters. Don’t pre-rinse dishes in the sink, only to move them to the dishwasher where the job will be duplicated. Instead, use a wet sponge to wipe dishes clean, then place them in the dishwasher. The job will get done just as well. Or, for caked on foods, follow the steps above then start the dishwasher. After 3 minutes, pause the cycle to allow water to sit-and-soak on your dishes. Then, restart the cycle as normal.

Test Your Toilets

A single leaking toilet can spill 60 gallons of water per day and there are several places where leaks can occur. The toilet may have a worn out flapper; or, a damaged gasket under the flush valve; or, a crack in the overflow tube. One clear sign of a leak is having to jiggle the handle to make the toilet stop running. To test for leaks, try “the dye test”. Fill the toilet tank with food coloring or instant coffee to a deep color and wait 30 minutes. If any of the coloring finds it way to the toilet bowl, you know you have a leak.

In addition to the tips above, the EPA keeps a list of water-saving steps on its website. See how many steps you can take to reduce your home water usage.

(Image courtesy : EPA.gov)

Freddie Mac 30-Year Fixed Rate Mortgage Rates Rises To 3.55%

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30-year fixed rate mortgage rateMortgage rates couldn’t fall forever, it seems.

This week, for the first time since mid-June, the 30-year fixed rate mortgage rate climbed on a week-over-week basis, moving 6 basis points to 3.55%, on average, nationwide.

According to Freddie Mac, 3.55 percent is the highest average rate at which the benchmark product has been offered in close to 4 weeks.

The Freddie Mac published mortgage rate is available for prime borrowers willing to pay a full set of closing costs plus an accompanying 0.7 discount points.

Discount points are a one-time, upfront mortgage loan fee to be paid at closing where 1 discount point is equal to one percent of your loan size. In this way, a St Paul home buyer who pays one discount point at closing will be responsible for an additional $1,000 in closing costs per $100,000 borrowed.

However, although Freddie Mac says that the average mortgage rate is 3.55%, not everyone who applies for a conforming mortgage will get access to that rate. This is because Freddie Mac’s published rates are the ones offered to “prime” borrowers, the definition of which often includes :

  • Top-rated credit scores, typically 740 or higher
  • Verifiable income using two year’s of tax returns 
  • Home equity of at least 25%

Borrowers not meeting the above criteria should expect slightly higher mortgage rates and/or discount points. In some cases, such as when an applicant’s credit score is below 680, mortgage rates may be higher by as much as 0.500%.

Although mortgage rates are up this week, though, the impact on home affordability is muted. Mortgage payments rose just $3 per month per $100,000 borrowed this week as compared to last week. 3.55% remains the third-lowest Freddie Mac rate of all-time.

Mortgage rates remain unpredictable and there’s no guarantee for low rates to last forever — much less through August. If today’s mortgage rates meet your needs, therefore, consider locking something in.

Simple Explanation Of The Federal Reserve Statement (August 1 , 2012)

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Putting the FOMC statement in plain EnglishThe Federal Open Market Committee voted to leave the Fed Funds Rate unchanged within its current target range of 0.000-0.250 percent Wednesday. The vote was nearly unanimous.

Only one FOMC member, Richmond Federal Reserve President Jeffrey Lacker, dissented in the 9-1 vote.

The Fed Funds Rate has been near zero percent since December 2008. 

In its press release, the Federal Reserve noted that the U.S. economy has “decelerated somewhat” since January. Beyond the next few quarters, though, the Fed expects growth to “remain moderate” and then gradually pick up.

There was no mention of strain in global financial markets and its threat to the U.S. economy, as the Fed had made in its last two post-meeting press releases.

The Fed’s statement also included the following observations about the economy :

  1. Household spending is “rising at a somewhat slower pace”
  2. Inflation has declined, mostly on lower oil and gas prices
  3. Unemployment rates remain “elevated”

Furthermore, the Fed addressed the housing market, stating that, despite signs of improvement, the sector overall remains “depressed”.

The biggest news to come out of the FOMC meeting, though, was that there was no news.

First, the Federal Reserve is leaving its “Operation Twist” program in place. Operation Twist sells shorter-term securities off the Federal Reserve’s balance sheet, using the proceeds to purchase longer-term securities. This move puts “downward pressure on longer-term interest rates” and makes “broader financial conditions more accommodative.”

Second, the Fed re-iterated its pledged to keep the Fed Funds Rate at “exceptionally low” levels at least through late-2014.

And, third, to Wall Street’s surprise, there was no announcement of a third round of quantitative easing, a market stimulus plan by which the Federal Reserve buys U.S. treasuries and mortgage-backed bonds on the open market. QE3 would have likely led mortgage rates lower.

The FOMC’s next scheduled meeting is a two-day event slated for September 12-13, 2012.

Mortgage markets are rising post-FOMC.

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