A Guide to Decking Materials

There is something liberating about spending time outside on a deck. Whether you make it a private retreat shaded by vegetation or an energetic entertainment area complete with a built-in BBQ, this outdoor living space is often the most enjoyable area of a home. It also increases the value of your home. Most homeowners see a return on investment between 74% and 87% after adding or renovating a deck. Before you start building, however, you want to make sure that the material you choose matches the exterior of your home and fits your lifestyle. This quick guide on some of the most popular decking materials will help you decide which material best suits your needs.

Wood

Lifespan: 10–30 years
Maintenance: High

Wood decking is the most common choice for residential decks. Durable and strong, it also offers a classic look that complements traditional, craftsman, and virtually any other style of home. The smooth planks stay cool and feel good on bare feet, making wood a natural choice for building your outdoor oasis. Softer woods are fairly easy for a novice do-it-yourselfer to work with; hardwoods generally require a stronger skill set.

The price of wood varies greatly depending on the type you choose. Pressure-treated pine is the least expensive material, but it typically needs to be replaced after about 10 or 15 years. Tropical hardwoods such as ipe, camber, or garapa look stunning and last for upward of 30 years. They also cost quite a bit more per lineal foot. Cedar and redwood are popular choices that fall in the middle of the price spectrum and have a lifespan of about 20 years. Professional installation will add to the price of the deck.

Regardless of the type of lumber you choose, it will require a fair amount of maintenance. Wood decks needs to be cleaned annually and restained and resealed every few years. You may also need to replace a board or two over the life of the deck. If not properly maintained, the wood will absorb stains—especially red wine or BBQ sauce—and will be more prone to cracking, rotting, and warping.

Composite

Average lifespan: 20+ years
Maintenance: Moderate

Composite is an environmentally friendly choice for those who love the look of wood but aren’t as enamored with the upkeep. Premium planks boast a textured surface that mimics the look of wood grain. Made from a combination of recycled plastic and waste wood fibers, composite is available in an array of colors and makes a stylish addition to most any home. Some types of composite also feature grooves in the edges of the planks to allow for hidden fasteners—no unsightly screws. Composite decks are relatively easy to install, but it is imperative to follow the manufacturer’s instructions to allow enough room for heat expansion.

You can expect to pay more for composite decking than for wood boards. It can run two or three times as much as pine, but it usually costs less than exotic hardwoods. Extras, such as scratch-resistant features and UV coating, will up both the price and the life expectancy of the deck. Homeowners will likely recoup the additional costs though, since there is not as much maintenance involved over the life of the structure.

Composite materials need to be scrubbed annually with mild soap and water to prevent mildew. Aside from that, they require very little maintenance. The color often fades with prolonged exposure to the sun, so this may not be the ideal choice for a west- or south-facing location.

Plastic/PVC/polyethylene

Average lifespan: 30+ years
Maintenance: Low

Smooth and splinter-free, this lightweight material is strong enough to withstand the harshest elements of nature. It is impervious to stains and resistant to fading, making it a great choice for an outdoor dining area. Unlike other types of decking, plastic decks typically feature a nonslip coating that becomes less slippery when wet. Even with a faux-wood grain finish, this material does not look natural and may clash with homes that have wood or stone exteriors. The synthetic material also gets rather hot in direct sunlight and can burn bare feet.

Decking made from plastic is comparable in price to its composite counterpart. Certain brands are more prone to sagging than others, so it is a good idea to pay a little extra for a reliable brand. Plastic typically requires a more extensive support structure than lumber because it is not as rigid, which also increases the total cost of the project.

Plastic decking does not necessitate any sanding, staining, or painting. All it requires is seasonal cleaning to keep it looking fresh and new.

Aluminum

Lifespan: 50+ years
Maintenance: Low

Anodized aluminum decking offers a modern look that pairs well with contemporary-style homes. It is also a viable choice for destination decks near natural streams or manmade water features, because the textured finish boasts added traction. It also stays cool, making it barefoot-friendly even in sweltering temperatures.

Aluminum is one of the higher-priced types of decking material. Features such as a polyuria coating to reduce the sound of footfalls and tightly interlocking planks to prevent water from penetrating below will add to the price as well, but they are worth the investment—especially on second-story decks.

Like other synthetic decking materials, aluminum is virtually maintenance-free. It will not rust or rot and is resistant to mold and mildew. A quick sweep of the broom to keep it free of dirt and debris or an occasional hose-down to remove bird droppings or sap is all it requires.

The bottom line

These are four of the most popular types of materials used to construct residential decks. Even though wood is the most prevalent material, that doesn’t mean it is the right choice for your home. Take the time to consider the location of your deck, its intended use, and how much maintenance you are willing to take on before committing to a certain material. A well-designed deck built from the right material has the potential to become the best part of your home.

This story originally appeared on HomeAdvisor.

If you have a need for a real estate professional, please contact me. I would also appreciate your vote of confidence by passing my name to anyone you may know who would benefit from my services.

                 408.687.2026 |  Julie@JulieWyss.com | www.JulieWyss.com

15-Year Or 30-Year Mortgage?

One of the best ways to eliminate your mortgage debt is moving into a 15-year fixed-rate loan. With the average spread a full 1% compared to its 30-year counterpart, a 15-year mortgage can provide an increased rate of acceleration in paying off the biggest obligation of your life.

Can you pull it off?

In most cases, you’re going to need strong income for an approval. How much income? The old 2:1 rule applies. Switching from a 30-year mortgage to a 15-year fixed-rate loan means you’ll pay down the loan in half the amount of time, but it effectively doubles up your payment for each month of the 180-month term. Your income must support all the carrying costs associated with your home including the principal and interest payment, taxes, insurance, (private mortgage insurance, only if applicable) and any other associated carrying cost. In addition, your income will also need to support all the other consumer obligations you might have as well including cars, boats, installment loans, personal loans and any other credit obligations that contain a monthly payment.

The attractiveness of a 15-year mortgage in today’s interest rate environment has mass appeal. The 1% spread in interest rate between the 30-year mortgage and a 15-year mortgage is absolutely real and for many, the thought of being mortgage-free can be very tempting. Consider today’s average 30-year mortgage rate of around 4% on a loan of $400,000—that’s $287,487 in interest paid over 360 months. Comparing that to a 15-year mortgage over 180 months, you’ll pay a mere $97,218 in interest. That’s a shattering savings of $190,268 in interest, but there’s a catch—your monthly mortgage payment is going to be significantly higher.

Here’s how it breaks down. The 30-year mortgage in our case study pencils out to a $1,909 monthly payment covering principal and interest. Weigh that against the 15-year version of that loan, which comes to $2,762 a month in principal and interest, totaling $853 more per month, but going to principal. This is why the income piece makes or breaks the 15-year deal. Independent of your other carrying costs and other credit obligations, you’ll need to be able to show an income of $4,242 a month to offset just a principled interest payment on the 30-year fixed-rate mortgage. Alternatively, to offset the principled interest payment on the 15-year mortgage, you would need an income of $6,137 per month, essentially $1,895 per month more in income, just to be able to pay off your debt faster. As you can see, income is a large driver of debt reduction potential.

What to do if your income isn’t high enough

When your lender looks at your monthly income to qualify you for a 15-year fixed-rate loan, part of the equation is your debt load.

Lenders are going to consider the minimum payments you have on all other credit obligations in the following way. Take your total proposed new 15-year mortgage payment and add that number to the minimum payments on all of your consumer obligations and then take that number and divide it by 0.45. This is the income that you’ll need at minimum to offset a 15-year mortgage. Paying off debt can very easily reduce the amount of income you might need and/or the size of the loan you might need as there would be fewer consumer obligations handcuffing your income that could otherwise be used toward supporting a stable mortgage plan.

Can you borrow less?

Borrowing less money is a guaranteed way to keep a lid on your monthly outflow maintaining a healthy alignment with your income, housing and living expenses. Extra cash in the bank? If you have extra cash in the bank beyond your savings reserves that you don’t need for any immediate purpose, using these funds to reduce your mortgage amount could pencil very nicely in reducing the 15-year mortgage payment and interest expense paid over the life of the loan. The concept of the 15-year mortgage is “I’m going to have to hammer, bite, chew and claw my way through a higher mortgage payment in the short term in order for a brighter future.”

Can you generate cash?

If you can’t borrow less, generating cash to do so may open another door. Can you sell an asset such as stocks, or trade out of a money-market fund in order to generate the cash to rid yourself of debt faster? If yes, this is another avenue to explore.

You may also want to explore getting additional funds via selling another property. If you have another property that you’ve been planning to sell such as a previous home, any additional cash proceeds generated by selling that property (depending upon any indebtedness associated with that property) could allow you to borrow less when moving into a 15-year mortgage.

Are you an ideal match for a 15-year mortgage?

Consumers who are in a financial position to handle a higher loan payment while continuing to save money and grow their savings would be well-suited for a 15-year mortgage. The other school of thought is to refinance into a 30-year mortgage and then simply make a larger payment like you would on a 25-year, 20-year or 15-year mortgage every month. This is another fantastic way to save substantial interest over the term of the loan, since the larger-than-anticipated monthly payment you make to your lender will go to principal and you’ll owe less money in interest over the full life of the loan. As cash flow changes, so could the payments made to the loan servicer, as prepayment penalties are virtually nonexistent on bank loans.

There is an important “catch” to taking out a 15-year mortgage—you also decrease your mortgage interest tax deduction benefit. However, if you don’t need the deduction in 15 years anyway, the additional deduction removal may not be beneficial (depending on your tax situation and future income potential).

If your income is poised to rise in the future and/or your debt is planned to decrease and you want to have comfort in knowing by the time your small kids are teenagers that you’ll be mortgage-free, then a 15-year loan could be a smart move. And when your mortgage is paid off, you’ll have control of all of your income again as well.

Proximity to retirement is another factor borrowers should consider when carrying a mortgage into retirement isn’t ideal. These consumers might opt to move into a faster mortgage payoff plan than someone buying a house for the first time.

Keep in mind that to qualify for the best interest rates on a mortgage (which will have a big impact on your monthly payment), you need a great credit score as well. You can check your credit scores for free on Credit.com every month, and you can get your free annual credit reports at AnnualCreditReport.com.

This article was written by Scott Sheldon and originally published on Credit.com.

If you have a need for a real estate professional, please contact me. I would also appreciate your vote of confidence by passing my name to anyone you may know who would benefit from my services.

                 408.687.2026 |  Julie@JulieWyss.com | www.JulieWyss.com