The fiscal responsibility of a homeowner — in Washington and everywhere else — extends beyond the mortgage’s basic principal and interest repayments. Homeowners are also responsible for the real estate taxes on the home and its insurance premiums, too.

Failure to pay taxes can lead to foreclosure, and failure to insure is breach of your mortgage contract.

As a homeowner, you have a choice about how you manage your real estate tax and insurance bills.  You can choose to pay them from your own bank account when the bills come due, or you can choose to pay 1/12 of the annual bill to your mortgage servicer each month, and then let your servicer pay the bills on your behalf when they come due.

Not surprisingly, servicers prefer the latter method — it reduces two major lender risks:

1.                              That the home’s real estate taxes go delinquent and are sold to a third-party

2.                              That the home endures catastrophic damage during a lapse of insurance coverage

In theory, when the servicer is paying the bills, the home’s taxes are always current and the home’s insurance is always paid. This method of managing taxes and insurance is commonly called “escrowing”.

To calculate a home’s monthly escrow payment is simple. Just take the sum of the annual real estate tax bills and insurance bill, then divide it by 12 months in the year.

As a example, a $4,000 annual tax bill with a $800 insurance policy = $4,800 annually = $400 paid into escrow monthly. These monies are collected as part of the regular mortgage payment along with the mortgage’s scheduled principal + interest payment.

Homeowners choosing to escrow tend to get the lowest rate, lowest fee loans. This is because lenders often charge a premium to “waive escrow” (i.e. pay their own taxes and insurance). Escrow waiver fees vary between banks, but can range up to half-percent of the amount borrowed. The larger the loan, the stiffer the penalty in dollar terms. 

Choosing to waive escrow can also raise your mortgage rate by up to 0.250 percent.

If you’re unsure whether escrowing is right for you, talk to your loan officer and/or financial planner. There’s good reason to go either route depending on your profile.

According the Federal Home Finance Agency’s Home Price Index, home values are now off just 12.5 percent from their April 2007 peak nationwide.  This, after a half-percent monthly increase in prices in May, on average.

Given the state of the market since April 2007, the Home Price Index results are a positive for both the housing market and the economy, but we have to remember that May’s half-point increase is an average, and not specific to a particular area.

In contrast to “national markets”, the real estate markets in which you and I live are decidedly local.  It’s a major difference and the distinction renders the Home Price Index somewhat less important. 

After all, the HPI doesn’t account for housing activity in individual neighborhoods like Canonsburg , nor does it track value across cities like Washington. Instead, it summarizes data in giant chunks of geography.

A quick look at the HPI regional data proves the point. Of the HPI’s 9 tracked regions, only one was within one-tenth of one percent of the national, half-point average.  The others varied by as much 1.3 percent.

As a sample:

                               Mountain Region : + 1.7 percent

                               New England : + 0.2 percent

                               South Atlantic : +1.0 percent

And this is on a regional basis. The HPI’s applicability to state, city and neighborhood markets is even less appropriate.

Real estate values cannot be captured in a national survey. For home buyers and seller, what matters is the economics of a block, on a street, in a neighborhood.  That type of granularity can’t be tracked in a report like the Home Price Index.

The best place to get that data is from a local real estate agent that knows the market well.

Just because the expiration date has passed, that doesn’t mean that the food is spoiled. It’s a deep-seated misconception that results in the average American household wasting 14% of all food purchases.

The estimated cost of waste like that totals in the billions.

The data comes from a study commissioned by ShelfLifeAdvice.com, a website devoted to helping households cut food bills by providing better information of how to properly store food; of how food expiration dates work; and, by defining what “use by”, “sell by” and other product dates actually mean.

Among survey participants, women fared better than men, older people fared better than younger people, and married people fared better than non-married people.  Overall, however, there’s room for better understanding.

For example:

                               Milk will remain safe for about a week after the “sell by” date. It’s safe to drink beyond that, but the taste may change for the worse.

                               Cottage Cheese will remain safe for about 2 weeks after the “sell by” date.

                               Mayonnaise will last for up to 4 months after opening, when kept cold

And, perhaps the biggest surprise, is that eggs, if properly refrigerated, will remain fresh for up to 5 weeks after the “sell by” date on the carton.

Read the survey’s complete results on the ShelfLifeAdvice.com website, including facts you may not have known about keeping your food beyond its expiration date.  What you learn will keep you from pitching food prematurely, and help you save money at the grocery store.