Welcome to Real Estate Live, an online discussion of the Washington area housing market with Post Real Estate editor Maryann Haggerty.

Maryann has been with The Post for 18 years and has served as real estate editor for the last five years. She's been a business and real estate editor and reporter for about 25 years. In all that time, she still hasn't figured out where you can find a lovely but inexpensive house in a charming neighborhood.

Haggerty is joined by Washington Post columnist Elizabeth Razzi. Razzi is the Local Address columnist for The Post's Sunday Real Estate section in Business. She's written about real estate and other personal finance topics for magazines and newspapers since the days of double-digit interest rates. She is also the author of two consumer-advice books, The Fearless Home Buyer (2006) and The Fearless Home Seller (2007).

Today, they'll discuss the local housing market -- from condos and investment properties to contracts and mortgages.

For more on local real estate, visit washingtonpost.com's Real Estate section.

Submit a question now or during the discussion.

The transcript follows.

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Elizabeth Razzi: Hello, everyone! Well, it's starting to be an August tradition that we have a blossoming crisis in the credit industry. This year it's Fannie and Freddie on pulse-watch. Are any of you encountering problems getting mortgages (or decent rates) that you suspect might be related to their troubles? Let's see what we can figure out, here...

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Maryann Haggerty: Thanks for joining us. Let's get going...

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Maryland: Hello! We are thinking about selling a condo in Arlington that we own and is currently being rented. Is there any chance that the housing market in that area will pick up after the elections as a new group of politicos (for either side) prepare to come to town for the change of administration? Thanks!

Elizabeth Razzi: Don't let the prospect of incoming politicos influence your decisions. The elections just don't have that much effect on the area's housing market.

Maryann Haggerty: This is a metropolitan area of 5 million people. A few hundred politicians barely make a diffrence -- and of course many of them already live here...

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West Hyattsville: Hi, I have a home I would like to rent. Does the average homeowner expect to cover her monthly mortgage payment or expect more from the tenant? I recently married so I am contemplating the pros and cons of renting my home (to someone other than a relative for very little). My starter home will soon be empty of my two nephews and we'd like to try renting it to strangers this time around for a higher monthly rent. Thanks for your advice.

Elizabeth Razzi: Well, every landlord's goal is to rent the home for more than they pay out in mortgage, taxes, insurance and other expenses. Tax deductions for depreciation help the landlord's bottom line, too. But often the rent falls short of that, especially if the landlord has a high mortgage payment. In that case, the landlord chips in money extra month on this "investment," hoping to eventually recover the money through higher rents and price appreciation. What you CAN rent the place for is actually determined by the market. Shop around and see what similar places are renting for.

Maryann Haggerty: Yes, it's the market that will determine what you can charge. Then you have to decide whether that meets your needs.

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Alexandria, Va.: I have a lovely, well-built 1939 house in a fantastic neighborhood, with many updates. It will show well, except that it has only two bedrooms. There is a basement office. Would it be worthwhile to put one of those egress windows in the office, to make it meet code for a sleeping room? Would that help it sell? (I want to sell in the next year or so, and am worried about finding a buyer with only two bedrooms.) Thanks.

Maryann Haggerty: Price it out. It may cost less than you think. (Or more -- I'm not sure what you think it will cost.) I would think that would help make the house more attractive, as long as it isn't a dark, nasty basement.

(And PLEASE don't try to market it as a bedroom -- or use it as one -- if it's not up to code.)

Elizabeth Razzi: Pay a little visit to the city's building permit/code enforcement office. Get specifics about what they require for a basement bedroom. And then, sure, price it out. But also pay close attention to real sale prices for 2 bedrooms vs. 3 bedrooms for homes like yours in your neighborhood. If in doubt, I'd err on keeping my price low -- and not making the upgrade.

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Washington, D.C.: Just a warning to sellers -- don't accept contracts with buyers who are using lenders who are on shaky ground. I had a contract on my condo in D.C. from a well-qualified buyer who was using IndyMac. We were well along in the deal before news of Indy's troubles surfaced, but my agent and I still tried to convince the buyer to switch lenders sooner rather than later, but Indy convinced her that the bank was in a better position after being taken over by the feds. Long story short: At the last minute IndyMac wouldn't underwrite the loan and the buyer had to scramble to find another lender. Everything ended up fine because the buyer was putting 20 percent down and had good credit so she found another lender easily. However, it could have ended very badly for both of us if she couldn't find another lender.

Elizabeth Razzi: Thanks for that report from the field. But sellers can't really afford to be too picky about their buyer's mortgage lender. After all, even in this instance, the buyer was able to close the deal. Lots of vigilance is in order -- but don't go turning buyers away -- they're all facing the same challenges now.

Maryann Haggerty: ...and at the point where you have to say yes or no, you probably don't have veto power over the buyer's choice of lender anyway.

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Northeast D.C.: I am looking to buy a home. But I needed a little help with the down payment. Do you know of any programs that I can look into that will help with a down payment?

Maryann Haggerty: In tomorrow's Real Estate section, we have an article on the current state of the down payment, including a box listing many local down payment assistance programs. I don't know if that link is up yet on the Web. But it will be by this evening. We're listing mostly government programs, but some of the housing nonprofits can help too.

However, the new housing legislation is closing down the down payment assistance programs that were financed by home sellers through organizations such as Nehemiah and Ameridream. Unless they manage to overturn that in some way, those programs go out of biz Oct. 1.

Elizabeth Razzi: Don't forget to ask about FHA-insured mortgages. You can get them from many participating lenders. They still require down payments of as little as 3 to 5 percent. That's still a lot of cash in our area, but check it out.

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Camp Springs, Md.: July '07 we lost our home to a fire, it sat on a two-acre, heavily treed private lot. The plan was to rebuild our dream home on the lot, the cost $525K-plus, but then we'd have the most expensive house not just on the block, but the entire neighborhood. It's an older community. Worst timing with the housing downturn, rebuilding/reside in until sold was not an option either..frustrating architect issues/insurance temp housing deadlines. So...we decided to buy another home. The fire damaged property was paid off, gutted to the foundation. We now own the land, and are trying to decide what to do with it. Rebuild as first-time starter home and sell now... rebuild and rent as investment property now and use as a means for other investment prop. purchases... let it sit for now til the market changes... help.

Elizabeth Razzi: So sorry to hear about the fire. That's rough. Money is pretty much going to dictate what you can do in this situation, isn't it? If you use the insurance proceeds to buy something else, would you have the money (or ability to handle a mortgage payment) needed to build an investment property -- on spec? That's risky business these days. If you could afford to carry the vacant land for a few years until the market is better, that might be the safest and easiest route.

Maryann Haggerty: I can't imagine, after the experience that you have just been through, that you really want to become a speculative developer -- i.e., that you want to build a house from scratch and try to sell it.

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Laurel, Md.: My boyfriend and I (both 30 years old) are looking for a townhouse to rent in Fredericksburg. We have never done this before; should we get a real estate agent to help in our search? With all the foreclosures even with renters we don't want to end up on the street. We don't have money for a downpayment for a home which is why we are thinking of renting.

Elizabeth Razzi: You're wise for thinking about it this way. The only edge I can think of for renting through a real estate agent is that landlords might be less willing to pay for professional leasing help if they're having trouble paying the mortgage. Before you sign a lease with anyone, you can asks them to show you a recent statement from their lender, noting that they are on-time with payments. They don't have to give it to you, of course, and they may very well resist. But why not ask? Also, check the tax records, which are usually available online, to see if the owners bought the place -- or refinanced their mortgage -- since 2004 or so. That's when prices -- and mortgage shenanigans -- were at their peak.

Maryann Haggerty: A real estate agent won't be much help in looking for a rental house -- Fredericksburg is not Manhattan.

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Northern Virginia: I am hoping you can answer my question. We were just turned down by USAA to refinance our house because we are in what they call a "restricted ZIP code." Do you know what this is?

Elizabeth Razzi: That probably means it's a ZIP code flagged as having declining prices. USAA is a particularly conservative company; you should be able to find another lender willing to do business with you. But in a declining market, they may require that you have a better-than-usual credit score or higher down payment.

Maryann Haggerty: Many, many of the ZIP codes in this area are flagged by one or another player in the mortgage biz. (The PMI companies in particular are being pretty aggressive about this.)

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Reston, Va.: Wanted to send you a "report from the field -- I just sold my condo after about 3 weeks, for a couple thousand less than I paid 2 years ago, when I did get a good deal. I was very worried, b/c we'd had one foreclosure in the development and a couple of resulting lowered price sales (ranging from 10-15 percent lower than I paid). The difference, I believe: the work I put into my house "recaptured" some equity, and being in a great school boundary. 1/2 mile away, THs are languishing for less than my condo price, because of their school.

On the flip side, I was looking at a specific community where everything has sold -- at much lower prices than 2 years ago -- but things were selling in as little as 1 week. I put a contract in on a place that's bucked that trend and been on the market 5+ months, at almost full price and above the comps, but the deal is falling apart as I write this, because the owner won't fix some non-negotiable walk-through items from the home inspection (uhhh, bringing things to code??). What is she losing this sale for? About 3K, or 1 percent of the sales price (which, again, was higher than the comps already, by quite a bit). Lucky for me, I've found something else, for 10 percent + less, needs some work but nothing I haven't done before.

I guess my observation is, in good neighborhoods, properly priced homes in good shape are selling as long as both buyers and sellers are realistic.

Elizabeth Razzi: Thanks for the report! It's a foolish seller who lets a buyer slip away for $3,000 in this climate.

Maryann Haggerty: $3,000? What oh what are they thinking?

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Washington, D.C.: I bought my first condo about a year ago and have a primary $225,000 30-year fixed interest only mortgage at 6.75 percent, in addition to a HELOC, which has a balance of approximately $23,000 with an interest rate of 8 percent. At this point, I plan on remaining in this property for at least 3-5 additional years. In light of that, would it be in my best interest to pay off the HELOC as soon as possible then start making one extra payment a year to the primary mortgage so I will be able to build equity or just make minimum payments on both since I am expecting that I will sell the condo before the extra principal as part of my monthly payment kicks in? I have been paying a little extra towards the principal on the HELOC each month and figure I'll be able to pay it off in about 3 years. It doesn't seem worth it to consolidiate because it does not appears as if it will present much of a savings nor significantly reduce my monthly payments unless interest rates for a 30-year mortgage fall below 6 percent.

Maryann Haggerty: I'd pay that HELOC down -- at 8 percent, it's expensive money.

Elizabeth Razzi: I agree. And because it's a line-of-credit, paying down the outstanding principal on the HELOC will reduce the interest charges fairly quickly, too. But don't forget to contribute to your emergency savings and retirement savings, especially a 401(k) that has an employer match. The safest course is always to spread your money around a bit. We'll have a link here shortly to my column from last Sunday, which was about mortgage prepayment.

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Maryann Haggerty: Earlier I referred to a link to an article in tomorrow's paper (the downpayments info box). Those links go up on the site after 4:30 pm today...

Of course, you could also buy the paper tomorrow!

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Washington, D.C.: Hi!

Thanks for chatting today.

I saw a sobering story yesterday (on Yahoo's financial page, I think) about how some condo owners are being squeezed by other owners in the same building who aren't paying their dues (because of foreclosure, bad economy, etc.). I'm already a little hesitant to buy a condo in this market (D.C.), but is this really a concern I should add to my list of things to think about? Have you noticed that failure to pay condo fees is really a problem in this area?

Thanks!

Maryann Haggerty: We wrote a number of stories on this earlier this year. And yes, it is a problem, a big one in some places around here. The condo needs to pay its bills, and delinquent owners make that very difficult.

Elizabeth Razzi: It is definitely a concern. But you can address it. You have a right to review the condo's financial statements before you're committed to the purchase. Take that job seriously! You might even ask a CPA to review the documents for you, to get an opinion of whether the operation is financially sound and has enough money in reserve for long-term repairs and expenses. Ask the condo board officers -- and the management company -- if they are engaged in any lawsuits, or have many non-paying owners.

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Clifton, Va.: Laurel Md., are either of you going to be working at or stationed at Quantico? If so pick up the base newspaper and check the bulletin boards and housing office there for rentals.

Maryann Haggerty: Yes, if the couple looking for a Fredericksburg townhouse are being transferred to Quantico, that makes a lot of sense.

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Bowie, Md.: How come the enhanced interest rate on subprime loans isn't covering the losses on foreclosures?

I don't know actual numbers, but I thought subprimes usually charged about 3-5 percent more than primes EVERY YEAR, which is pure profit for the lender as long as the loan performs. So how come the 1-2 percent foreclosures (which don't represent a 100 percent loss) are forcing the lenders under?

Maryann Haggerty: Because the foreclosure rates are higher than they bargained on when they set those margins. (The percentages you are comparing are basically apples and oranges.)

Elizabeth Razzi: You're assuming the lender is getting that extra interest and pocketing it. Those loans were carved into parts and sold into the bond market. And that's one of the problems... the risk and the reward were separated from each other.

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washingtonpost.com: Searching for A Hot Investment? Try Your Mortgage.

Maryann Haggerty: This is the link to Elizabeth's column on paying off your mortgage in advance.

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Falls Church, Va.: We bought a small 1/3 acre lot in the mountains for $3,700 to eventually build our dream vacation. We applied for sewage/septic and after testing our application was denied because the ground was found to not be able to absorb. We were thinking of the alternative of hiring a professional engineer but that would cost us almost 10k or more and still does not guarantee that we can get passed for sewage/septic. We thought of giving a sell offer to the next door neighbors but who would want to buy unbuildable property. What would you guys do in our situation?

Maryann Haggerty: if it won't perk, the only alternative, as you seem to have discovered, is hiring an engineer to examine possible changes in grading, which will cost even more. The question is: How bad do you want to build there? Unless you really really really love it, my first thought is that you haven't really spent all that much,so it's not THAT expensive a lesson. And the lesson? Raw land purchases should be contingent on perk testing, I'm afraid. If your neighbor will pay anything for the land, that will reduce the sting. Maybe he would want to build a garden or something, not a house...

Elizabeth Razzi: What I would do... is cry. If the land won't perc, what you have is a 1/3 acre campsite. If the neighbors want to buy it from you... at less than $3,700 probably, you'll be fortunate. Sorry.

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Washington, D.C.: Are there mortgage companies that will not charge any upfront fees if you are interested in consolidating multiple loans (e.g. -- application fee)? Is it more advantageous to go in one direction opposed to another when considering this step?

Elizabeth Razzi: Oh wow... that question just gave me a 2005 flashback. Lenders were doing a lot of that no-fee, debt-consolidation stuff back then. What you're talking about is just a plain-old refinance. If you do find a lender that promises no up-front fees, watch to see that their interest rate is competitive with others. And don't be surprised if they say your multiple loans don't leave you with enough equity to qualify for a refinance now.

Maryann Haggerty: No-fee either means higher rate or the fees rolled into the balance of the loan. Just keep that in mind as you shop. If your loans are high interest, you can save by doing this.

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To Alexandria with the basement room: When we were house-shopping, we didn't consider any house with basement bedrooms unless they were "bonus." Most young families or couples thinking about starting a family (your target markets) can't use a basement bedroom with small children... it's totally impractical.

Elizabeth Razzi: That's true... BUT... you shouldn't assume all the would-be buyers have young children. Teenagers just love having a room far away from Mom and Dad. (Whether Mom and Dad want that also is another question...)

Maryann Haggerty: Teenagers. Au pairs. Mothers-in-law.

The same thing that makes a basement bedroom impractical for young children -- its distance from mom and dad -- makes it desirable in other circumstances. My guest room is a downstairs bedroom, and that extra measure of privacy is nice.

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washingtonpost.com: Read Them, Or Weep: Condo Association Documents Give Buyers a Glimpse of the Future

Elizabeth Razzi: Here's that link to things to think about when buying a condo now.

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Building on the two-bedroom question: I have a semi-detached in Riggs Park that has two bedrooms on the top floor and one "bedroom" (agent says it has a closet and a door so it's a bedroom) on the main floor. I feel odd saying my house is a three bedroom based on that room located right there at the front door. The previous owner used it as a den. When I bought the house in 2002, I made it an office because there was an addition off the kitchen and a finished walkout basement for use as dens/family rooms.

Or should I shut up and listen to the agent so I can get my house sold?

Also is there any benefit to waiting til after the new year to put the house on the market? Thanks, ladies.

Elizabeth Razzi: Hey, that's a bedroom! Be delighted about that. I've seen many, many homes in this area with a bedroom close to the front door. Don't apologize for it.

Maryann Haggerty: Shouldn't that be a closet and a -- window --, i.e., a second method of egress? That's the convention. If it has that, it's a bedroom, no matter how weirdly located. If it doesn't, don't call it one.

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washingtonpost.com: What You Call a Bedroom Might Not Be One

Elizabeth Razzi: Here's a link on what makes a legit bedroom.

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Braddock Heights, Md.: I want to second your advice to check on the financial situation before you buy. BUT, what do you do if the financial situation starts going south after you purchase.

My mom lives in condo in Clearwater, Fla. As costs have increased (think insurance, utilities) her condo board has skimped on funding the community reserves. I'm not sure most of the residents even understand the risk this puts them in.

Maryann Haggerty: The only solution, really, is active participation in condo governance.

Many condos in Florida face a tension between residents who are on fixed incomes and don't want any fee increases at all, and others who think that investing in the common areas is the only way to maintain value. Neither is by definition the only correct approach.

Elizabeth Razzi: Unfortunately, if there are a lot of elderly residents in the condo, it becomes a bit of a waiting game. They don't want to invest in upgrades that will pay off after they have moved on. But that sets younger residents up for a costly special assessment once those upgrades can't be put off any longer. You can also have this unfortunate downward spiral develop when there are a lot of investors who own units.

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Realtors: Has the number of active Realtors declined in the area with the market decline? It makes sense that it would, I'm just curious if that's the case, though.

Maryann Haggerty: The licensing numbers seem to show a decline, yes. (And you do need a bit of time before people let their licenses lapse.)

Elizabeth Razzi: Once you have the license, it doesn't cost much to keep it active for a while, even though you may be earning your living doing something else.

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Clarksville, Md.: Hi Elizabeth -- is that you writing for Bankrate.com?

Elizabeth Razzi: Hi,Clarksville, I do freelance for Bankrate (and other publications) from time to time. However, I saw that Scripps picked up one recent article -- about down payment assistance -- and mistakenly credited it to me. They've fixed that. My most recent story for them was about home values and divorce... not a particularly happy picture.

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Laurel, Md.: Neither of us is stationed in Quantico. I work in Falls Church and he's going to keep his job in Richmond until he finds something closer.

Elizabeth Razzi: there you go...

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Tysons Corner: I have a condo in an older community in Tysons. Not as old as some, but certainly not the new kid on the block. Basically, some new places that are just beautiful are being built right around the corner from me. I can do some upgrades to my unit, but I will never be able to make it new again. Plus my lobby and hallways look old and dated. I can't compete on looks, but my place will be closer to the metro when it comes in one day. What type's of upgrades should I do? I've already started upgrading my kitchen countertops and appliances. New carpets? Or would it be worth it to get an architect in to do a major overhaul?

Elizabeth Razzi: Nooo, don't do anything major. An older condo has to compete with the new ones on price. And, at least for now, you can't compete with a Metro station that isn't there yet. New paint, new carpet, nice appliances (but not crazy expensive ones) are about all you can do. Though you might want to get involved with the condo board. Maybe it's time for a re-do of the lobby and hallways? It has to be done -- at all condos -- periodically unless you want to slide down the quality scale indefinitely.

Maryann Haggerty: ...and also make sure you remind board members that it's in everyone's interest to keep property in clean, sparkling condition.

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Rockville, Md.: This is more about the family that the business side of real estate.

Since my youngest sister finally finished graduate school and moved away, my mother (70+) is alone in the house our family of five grew up in. A visit last week revealed that it's too big and she's not keeping up with the cleaning, maintenance or yardwork.

Do you know any books about "how to convince your parents it's time to move"?

Maryann Haggerty: Consider "Caring for Your Parents: The Complete Family Guide" by Hugh Delehanty and Elinor Ginzler, published by AARP but available through the usual bookstore channels.

You do need to talk with her, and determine whether it's time to move, or perhaps whether you can hire someone to help her. If she can still care for herself, drive as needed and handle the stairs, she may not need to move if she doesn't want to do so. (Cleaning, yardwork and maintenance can easily be hired out.)

Good luck. This can be a tough one. But you could be surprised -- your mother may be very open about her options and preferences.

Elizabeth Razzi: AARP is an excellent source of information on this topic. Perhaps you can ease your mother into making the decision on her own by visiting other residences that might be more manageable. Her friends might have some useful advice, too. And, if she is physically able, you might find ways to retrofit the house to make it more manageable if she truly wants to stay. Replacing lawn with groundcover, for example, takes away one job. Adding a full bathroom to the main level might allow her to consolidate living to that area, for example. AARP has good information on those alternatives, too. Best of luck to all of you.

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Where do we go from here?: Now that the boom has come and gone and prices are falling like raindrops from the sky, what do those of us who need to sell do now? Not trying to get rich, didn't take a crazy loan, didn't take out equity, just trying to sell and walk away without having to come to closing with cash.

Elizabeth Razzi: We go back to basics. If you really want to sell, get the house in tip-top shape. Do the cheap stuff. Get it absolutely sparkly clean. Make minor repairs. De-clutter, de-junk. Haul out excessive furniture. Make the front yard pretty. Spend a couple of hundred dollars on a stager if you're not sure what to do. Hire a really sharp real estate agent. After all that, make your price competitive for today's market. You don't say where you live, but some markets are still doing okay. Not great... but okay.

Maryann Haggerty: And is this when we get to add our pet peeve? Make sure that agent does the best possible job marketing the place. That includes a well-written listing, with attractive photos.

Elizabeth and I have gotten some real giggles out of Web sites that collect bad listing photos. Here's one:

http://reagentinct.com/category/bad-mls-photo-of-the-day/

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Alexandria, Va.: As an empty-nester, that two-bedroom home in a nice neighborhood with a downstairs office would be perfect for my husband and me. I'd turn the basement room into a hobby room, use one bedroom as ours, and depending on layout, the second bedroom could be either a guest bedroom or an office or sitting room.

I would guess that adding an egress window in a basement might involve a lot of bulldozing outside, re-landscaping, and possibly give rise to security concerns. That homeowner might want to talk with a local real-estate agent, but I'd think there would still be plenty of people who would find that home very desirable as is. Make it look nice but no need to spend 10's of thousands of dollars that you don't have to on rejiggering the architecture.

Maryann Haggerty: Several folks are voting for a 2BR plus office.

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More about basement bedroom: And really, a major target audience for the 2-BR, basement office is the single or childless couple who want an office in the house. Personally in this market, I would leave the room as is and lower the price. Anyone who has a teen, au pair, in law, etc who wants the extra room could spend the couple of thousand extra that they save on the purchase price of the room to make whatever accommodation suits them to the room, including putting the egress window to convert it to a BR. In this market, lower the price to what you can bear to sell for and once the buyers buy, they make the accommodations. The only way you should make changes is when you can't sell it without them (and the chances of the third BR making the difference is smaller than the difference a lower price would make).

Maryann Haggerty: Actually, I suspect what this comes down to is what the competition in the neighborhood has -- if you're the only 2BR, you may lose out.

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"Bedroom" vs. den vs. basement: This is the perfect example of "marketing" vs. "selling": if you want lots of foot traffic (which by the way makes your agent look good right before the drop-the-price pressure begins), call it a bedroom. If you want to sell the house to someone who knows what he's coming to see, call it something else.

Elizabeth Razzi: A little cynical, I'd say. Everyone knows you can make an office out of a bedroom, but a smart buyer knows there are safety standards for a bedroom. If it qualifies, I say count it.

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Laurel, Md.: Thanks for answering my question. When I check to see if the owners bought the place -- or refinanced their mortgage -- since 2004 or so what will that tell us?

Elizabeth Razzi: That will just tell you there's a higher probability they bought it at a high price or that they got a mortgage that is no longer affordable. Be more insistent that they document that they're current on their mortgage.

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Arlington, Va.: I was wondering what your thoughts are on today's article "Bad Begets Worse" by Jeffrey Birnbaum, both the substance and actually one error which concerns me more: The author refers to "Alt-A" loans as "all day" loans (no way this is a typo) which indicates a journalist who does not have a sufficient grasp of the industry to write a truly accurate, analytical, in-depth piece. I feel like this issue is being inaccurately portrayed by the WaPo and other media due to the lack of sufficient experience/knowledge/insight to ask the right question, let alone properly analyze complex issues.

Elizabeth Razzi: Honestly, you don't think we're incapable of error, do you? Alt-A was a plain old mistake. The ear hears one thing, the fingers write another. Please accept my apologies for what can only be a typo. Birnbaum's story was quite good, I thought.

Maryann Haggerty: I agree -- brain freeze. A bigger issue is the interplay of Fannie/Freddie/government/markets, which that story looked at in an understandable way.

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Washington, D.C.: I am interested in consolidating a mortgage that I settled on a year ago along with another loan. Do banks traditionally require a customer to retain a mortgage for certain length of time with their bank? I am considering going with a competitor?

Maryann Haggerty: Check what you signed -- in some cases, yes, you have a penalty if you refi the loan. In others, no.

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Arlington, Va.: I'm looking to buy my first home, and I've been looking at Bankrate.com to compare mortgage rates. Some rates are better than others, but I don't know anything about any particular lender. It seems foolhardy to just go with the cheapest APR without knowing anything about the companies. If I go to their sites, they all claim to be the best. How can I learn which lenders are reliable and which to avoid? Thanks!

Elizabeth Razzi: Online sites like that are fine as a starting point -- but they are only a starting point. Take one or two lenders from that site that seem to have the most competitive rates, and check out those institutions' Web sites. Then add a few other lenders to your mix. Don't overlook your credit union! They often offer the best deal. Get a rate quote from the place that has your checking account -- and ask if they give you any break for having multiple accounts with them. If you or your family has a military background, give USAA a try. They often offer good deals -- but you have to have that military service link to qualify.

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Springfield, Va.: Elizabeth, I enjoyed your article last week about paying off your mortgage early. I've been doing the same with our rental condo. Although the interest rate is less than 5 percent on a 15-year fixed mortgage, it will be a great feeling to be mortgage-free. So do you think the same benefits apply to rental properties as well to your primary residence?

Elizabeth Razzi: Thanks very much. I think it's a different scenario when you're talking about investment property. That's pretty cheap money you have there -- fixed for 15 years. Are your other -- financial -- investments where they should be? There's a psychological benefit to knowing your home is paid for -- and a real cash-flow benefit in retirement. With investment real estate it is all about the dollars. What's going to yield more over the next 10 years or so?

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Oviedo, Fla.: Polite disagreement -- telling a long-time owner to dejunk typicaly means they empty the trash, take out stacks of recycling and maybe wash the throw rugs. With the buyers' mkt. here, people who leave the pet bowls, clutter on frige door and makeup and saving stuff on counters turn people off. Maybe cable TV shelter shows have set the bar too high but I don't want to see your afgan on the sofa, your dishes in drainer and your pile of dry cleaning next to three days mail. If you haven't shown a home for a while get a stager up front. The listing is aging -- tick tock. (I am NOT a stager -- no vested interest in that suggestion.)

Elizabeth Razzi: I agree with you. I've seen some incredible stuff at open houses. Get rid of it!

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Washington, D.C.: You're a single guy and you want to bring your sweetie to visit your place: What kind of home would impress women: a condo, a townhouse or a single-family detached home? Would a single male homeowner impress women at all or would it induce a yawn?

Maryann Haggerty: Not all women are the same!

Some would see homeownership as a welcome sign of settled-down-ness. Others would see fuddy-duddy-ness. Some want to see a Loudoun McMansion, others want to see a Logan loft.

The real question: What do YOU want? You want a woman who likes you as you truly are, and you want your home to express that.

(With some exceptions: No Austin Powers bedrooms. And no aging pizza boxes piled atop frat-boy empty beer cans. Even if that truly is you deep down inside.)

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Elizabeth Razzi: Oh... to the guy trying to impress his sweetie. Wow. I thought flowers were cool. Honestly, all you really have to do... is CLEAN the place. She'll love it. Oh, and cook, too.

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Elizabeth Razzi: Thanks for some great questions and insights, everyone. Love the reports from the field! This Sunday's column will try to offer some fresh ideas on cutting a home's price. See you in September.

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Maryann Haggerty: Thanks for joining us.

Tomorrow's Real Estate section focuses on down payments, among other things.

On Sunday, Elizabeth will discuss the art of price cutting.

Otherwise, the weather this weekend is supposed to be beautiful. So get out of the house already!

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