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The DC Office of Planning is recommending changes in special zoning restrictions that limit the number of bars, restaurants, and other businesses in certain busy areas of Washington DC. The changes would clarify or eliminate the restrictions.

The Planning Office staff has suggested two options. The existing provision limits bars and restaurants to 25 percent of the "street frontage" along specified areas known as neighborhood commercial overlay districts. Clarification would specify more detailed restrictions without reducing the overall number. The other possibility is to eliminate the provision altogether and decide whether restaurants, bars, and other businesses should be allowed on a neighborhood-by-neighborhood basis.

According to Goulston & Storrs, residential areas are generally off-limits to business development. However, the zoning changes could mean businesses could open inside homes or right next to them.

The planning staff report acknowledges that many residents are concerned with possible negative impacts of non-residential use of their neighborhoods. Some people prefer a quiet neighborhood with little traffic while others may enjoy having businesses within walking distances. The staff report also states that in many cases, commercial use of property in residential areas can be compatible with the needs of the community.

What does this mean for homeowners, potential buyers, and real estate developers in DC? Proximity to a large variety of bars, restaurants, and similar commercial enterprises can be a great selling point. If you are concerned with how the zoning changes will impact the marketability of your property or if you are looking for property in the DC area and need to know more about the zoning regulations, contact DC real estate expert Rachel Valentino.

One of the most attractive yet overlooked incentives to buying a home in Washington, DC is the DC Tax Abatement program. This property tax reprieve can mean big, big, BIG savings  to those that qualify... To find out how the DC Tax Abatement could help you buy a new home, contact Rachel Valentino.

The DC Tax Abatement is a five-year exemption from paying property taxes on eligible buyers' homes. As an added bonus, it exempts the buyer from the 1.1% transfer and recording taxes that usually need to be paid at closing. It also allows for a 1.1% credit from the seller, meaning your closing costs can be reduced from around 3% to under 1%!!!

Here, according to DC.UrbanTurf.com, is an example of how the Tax Abatement works: for a $300,000 home, the buyer would save $3,300 in transfer and recording fees, and upwards of $6,600 depending on the transaction. In addition, over the five-year property tax exemption period, the savings would be $9,881.25. Between the exemption on fees at closing and the five-year property tax abatement, the accumulation of savings can be significant.

There are, however, stipulations as to who qualifies for the program as well as purchase price limitations. The purchase price of the home cannot exceed $319,920 and buyers must meet income eligibility requirements. The income limits begin at $53,760 for a single-person household and increase by about $7,680 for each additional person. Other conditions are that the purchase must be for a principle residence and the buyer must be a current DC resident.

Still not sure if your DC home purchase qualifies for the Tax Abatement program? Contact Rachel Valentino and her team of DC-area real estate experts. They can help you determine your eligibility as well as help you file the required paperwork.

Mortgage interest rates are lower than they have been for some time yet the latest employment outlook, which has an impact on interest rates, is still bleak. This can make deciding whether to refinance your Washington, D.C.-area home a difficult decision. There are several factors you need to consider.

One of the most important aspects of refinancing you will need to evaluate is how much you will actually save by refinancing your mortgage. As a rule, the interest rate for your new loan should be at least two percentage points lower than the rate on your current loan. You also need to think about how long you plan to stay in your current home. If you decide to refinance, you will need to stay in your current home long enough to at least break even on your savings with respect to the cost of refinancing. Remember, refinancing involves closing costs, and possibly points, just as you incurred when you obtained your original mortgage. The following is an example of how to calculate  your cost to refinance.

Yahoo Finance offers this example:  If you had a $200,000 30-year mortgage with an 8% interest rate, your monthly payment would be $1,468. If you refinanced at 6%, your new monthly payment would be $1,199, a savings of $269 per month. Assuming that your new closing costs amounted to $2,000, it would take eight months to break even. ($269 x 8 = $2,152). If you planned to stay in your home for at least eight more months, then a refinance would be appropriate under these conditions. If you planned to sell the house before then, you might not want to bother refinancing.

You will also want to be aware of current interest rates. According to The Wall Street Journal, current mortgage interest rates are:

30-Year Fixed - 4.87%

15-Year Fixed - 4.24%

5/1 ARM - 3.53%

30-Year Fixed Jumbo - 5.46%

30-Year FHA - 4.69%

You also need to keep in mind that because of  the gloomy unemployment news, consumers are less likely to make purchases, especially large long-term ones such as homes. With less demand for homes and home loans, interest rates may become lower but may also shoot up. There is a large degree of uncertainty right now, which wreaks havoc on interest-rate fluctuations.

There are also other things to contemplate when making a refinance decision. The term of the mortgage will determine whether you make higher monthly, lower interest, shorter-term payments or lower monthly, higher interest, longer-term payments. This directly effects how much interest you pay and thus how much the loan will cost in terms of interest.  A variable-rate mortgage (ARM) as opposed to a fixed-rate mortgage will also make a difference in how much interest you will pay over the term of the loan.

Refinancing your DC-area home is a major decision. You need to carefully consider such things as what your savings will be, current interest rates, and economic and real estate market trends. Need help? Rachel Valentino and her team of DC-area real estate experts are happy to put you in touch with competitive and trustworthy local lenders who will help you make your refinance decision. Believe me -- I understand. Dealing with loans and trying to decipher what option makes the most sense for your household can be difficult, EXTREMELY confusing, and downright scary....but don't let that interfere with the significant savings you could be accumulating each month. Reach out to us & let us put you in touch with our go-to professionals with a history of competence, empathy & competitiveness.

A milestone was reached for the Dulles Corridor Metrorail in late October. The tunnel's west end was "holed through" by miners in preparation for completing the mining portion of excavation.

Miners worked diligently for over one year, both night and day, to get the Dulles Metrorail built.

Inbound tunnel mining is taking place this month. After excavation, the workers will reinforce the tunnel from the inside using a spray-able concrete substance. Waterproofing and further reinforcement will finish off construction toward the end of 2011.

The Dulles Corridor Metrorail stretch from Reston to Falls Church is 11.5 miles long.  Construction is around 22% complete. The rail extension will merge with the existing Orange Line at the intersection of Route 267 and I-66 near West Falls Church.

Pier construction is now complete. Detours are available for drivers at the Dulles Connector Road, Route 123, I-495, I-66 West and at the local roads near Route 7 and Idylwood Road.

Don't hesitate to call Rachel Valentino, DC's "Best Real Estate Agent" as voted by the Washington City Paper, for a no-pressure consultation & discussion about which DC areas are under construction. Rachel is on top of DC's real estate scene and is active in all avenues of the market - including private residences, new construction, luxury market and the condo and co-op community.