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April 2007

Remember that mortgage insurance premium deduction

Under the new law, passed by Congress and signed by President Bush late last year, private mortgage insurance (PrivateMI) premiums are fully tax deductible for borrowers who buy or refinance a home this year if their adjusted gross income is $100,000 or less. Families with incomes of more than $100,000 and up to $109,000 will be eligible for a reduced deduction.  Since the new deduction is effective for the 2007 tax year, tax day in April 2008 could bring a bigger refund to qualified borrowers who buy or refinance homes this year with tax-deductible private mortgage insurance. A broad coalition of tax, consumer, civil rights and civic groups strongly supported the mortgage insurance deduction.

"Making mortgage insurance tax deductible will amount to real savings for people who need it the most-families who've worked hard to get into their first homes," said Pete Sepp of the National Taxpayers Union. "Our tax code has long recognized the importance of allowing costs associated
with home financing to be tax deductible, and mortgage insurance premiums should be no exception. Congress should uphold this principle by extending the federal tax deduction for mortgage insurance."

"Tax deductible mortgage insurance results in hundreds of dollars in savings for low to middle-income families. This important step towards homeownership was long overdue, and it is time for families to take advantage of the new deduction," said Bruce Hahn, president of the American
Homeowners Grassroots Alliance (AHGA). "Making the deduction permanent would help lower income and first time home buyers, promote stability in the housing market, maintain home values and limit the impact of the current mortgage turmoil."

This new law comes at a time when real estate market conditions are changing and increasing warnings of exotic loan risks are being voiced by government regulators.  Mortgage insurance plays a crucial role in maintaining the stability and health of the mortgage finance system. With rising interest rates and slower appreciation of home prices, many people who used exotic loan structures are being surprised with higher monthly payments.

"A loan with private mortgage insurance is a smart choice for many home buyers in today's market, especially low- and moderate-income families," said Steve Smith, chief executive officer of The PMI Group, Inc. and President of Mortgage Insurance Companies of America (MICA). "PrivateMI has always been an easy and predictable way for buyers to finance their home purchase, and it can be canceled when it's no longer needed. Now, this new tax deduction makes it an even better choice."

Compared to other financing options, a mortgage loan with PrivateMI is often more affordable. Its fixed, predictable and cancelable premiums provide consumers with peace of mind-and now a tax deduction.  Private mortgage insurance premium prices vary based on the size of the down payment, type of mortgage and amount of insurance coverage. The cost of PrivateMI for a median-priced home-the projected national median price in 2007 for a single family home is $224,500-ranges from $50 to
$100 per month.

"This new tax deduction will make loans with private mortgage insurance even more attractive for home buyers who are on the cusp of homeownership," said Suzanne Hutchinson, MICA executive vice president. "The wide-ranging group of organizations that support this important tax break will certainly be working to extend the deduction beyond 2007."

11:34 AM - Apr. 30, 2007 - comments {0} - post comment

If you're facing foreclosure

Some commentators blame the crisis on lax credit guidelines over the past few years; others fault Wall Street bankers and mortgage-backed securities. Either way, one thing seems abundantly clear: millions of Americans are, or soon will be, overextended and at serious risk of losing their homes. Are you, or someone you know, one of them?

If you're currently struggling to make your monthly mortgage payment, the decisions you make today could make or break your financial future. Remember, even though most lenders would much rather have the money and interest that your mortgage can generate as opposed to actually taking your home, the foreclosure process can begin immediately after a single mortgage payment is past due, and you've breached the agreement. Therefore, don't wait for this to happen. Even if you're already late on a payment, there may still be a number of options available to help you keep your home. The key to avoiding foreclosure is enlisting a mortgage specialist to help analyze your financial situation.

The following are a few possible short- and long-term options that could help you avoid foreclosure, depending upon your particular goals and needs.

Refinance
If you have an Adjustable Rate Mortgage and you're currently struggling to make the monthly payment, then ask yourself this: can you really afford an increase of up to 50% or even 100% of your current payment when your loan resets? Fixed rates are currently near historic lows, and refinancing may provide the stability you need to get through the tough end of this changing real estate market. Even if you have a prepayment penalty, you may still have attractive options that, in the long run, could save you a lot of money. The key is to act now. As more and more subprime lenders collapse and foreclosures increase, credit standards will tighten further, and, depending upon your credit, you may not qualify to refinance in the future.

If you're an ARM borrower who is not struggling with current mortgage payments, are you prepared for a potential increase when your loan resets? Do you know exactly how much your increase will be? Do you know your index and margin? One of the biggest problems ARM and Negative-Am ARM consumers will face is simply not being aware of and prepared for the changing nature of their mortgage instrument. Don't let foreclosure sneak up on you. Can you afford a $700 a month increase in your mortgage payment? If you have an ARM, look six to twelve months down the road. What if you lose your job? What if your child's tuition increases? Will you be able to handle the increased monthly mortgage payment? These are important questions and issues that should be addressed by an expert who has your best interests in mind.

Sell Your Home
If you do have some equity built up, selling your home could be the quick fix you need. Ask a real estate agent for a comparative market analysis to see if your home can be sold before your payment resets at a higher rate. Sure, you may not get the price you could've gotten for your home a few years ago, but you may be able to avoid foreclosure and even walk away with some profit.

For many borrowers, however, an increased mortgage payment is not their biggest problem right now. In parts of the country where home values have significantly decreased, some borrowers actually owe more on their mortgage than their house is currently worth. And while this is a terrible position to be in, it does not mean that a house can't be sold or that foreclosure can't be averted. Ask your mortgage specialist about the possibility of a short sale, a common strategy that allows you to sell your home at a loss.

Some consumers may want to consider a hard-money refinance. A last resort, this is a more expensive "private money" loan that is not advisable for all borrowers. When it comes to private-money loans, however, be careful. There are scammers out there who prey on people trying desperately to save their homes. Always seek professional advice before taking on any mortgage or refinance. Remember, your goal in refinancing is not to put yourself in a worse position than you're already in.

Communicate with your Lender
If you don't have a lot of equity built up, and homes all over your neighborhood are up for sale, foreclosure is not necessarily inevitable. If you simply can't afford your mortgage and you seem to have no other options, talk to your lender before you get behind. To avoid the expense of a foreclosure, some lenders may be willing to work with you.

If you do get behind in your payments, your lender may provide a forbearance agreement, but lines of communication must be kept open. This type of arrangement will allow you to make back payments and avoid foreclosure. If, however, you run out of options and there seems to be no hope, you could always offer to give up the deed in lieu of foreclosure. To avoid legal costs, some lenders may accept this gesture without initiating foreclosure proceedings.

The subprime collapse is in full swing and, one way or another, millions of borrowers are going to be negatively affected. With the enormous wave of foreclosures expected in the coming years, it's important to know exactly where you stand with the biggest investment you'll likely ever make: your home. If you are concerned about possible increases in your monthly payment, get a mortgage check-up today. You'll be glad that you did.

2:12 PM - Apr. 28, 2007 - comments {0} - post comment

When to lock your mortgage rate

Our friends at Apollo Mortgage give us this timely information about "locks."

I always advise my clients to lock in their interest rate at the earliest opportunity. Gambling with a client's interest rate is never advisable. In my business, I have a standardized system in place that we adhere to for all of our clientele.

A mortgage loan cannot be closed without locking in a rate, and there are three main elements to take into consideration:

• Interest Rate
• Points
• Length of the lock

Locking in on a rate does not obligate the client to commit to the loan until the loan is actually closed. The lock simply eliminates any risk of the borrower being exposed to market volatility. It provides the security of having time to complete the mortgage and Real Estate transactions with some sense of order. The lender must disburse funds to complete the transaction within the rate-lock period, or else the original commitment to provide a loan at a certain interest rate will expire.

When a lender permits an extended lock-in period, the borrower will usually see either a higher interest rate or more points associated with the loan. The lender does this to minimize their own exposure to market volatility; hence the borrower pays for the lender to take on this risk.

For example, a 30-day rate lock commitment may cost the consumer one-half point, while a 60-day rate lock commitment could cost 1 full point. If the borrower needed an extended lock period, but did not want to pay points, the lender could make up the difference in the interest rate. In this case, typically, a 60-day lock would have a higher interest rate than a 30-day lock.

In my business, our standard procedure is to lock in a rate as quickly as possible once we have received the loan application. My team and I let our clients know that while interest rates fluctuate daily, most lenders do not want to lose any business. We know that in many cases, if there is a significant rally in the market that causes interest rates to drop 0.25% or more, we can ask the lender to renegotiate the rate. Often the lender allows for a renegotiation to avoid potentially losing the loan to another lender.

If we allow our clients to sit on the fence and not lock in a rate quickly, we would leave them exposed to market volatility. Then, if rates do increase, the borrower may be unable to qualify for the loan they want, which is a situation we try to avoid at all costs.
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1:57 PM - Apr. 26, 2007 - comments {0} - post comment

Protect your credit cards

6:23 PM - Apr. 24, 2007 - comments {0} - post comment

If you need to refinance a mortgage there are new rules

What happened?

The "smart" play in real estate between 2001 and 2006 was to buy as much property as possible, finance with little or nothing down and then make the smallest allowable monthly payments. Such a strategy made sense in a world where home values "always" rose and lenders provided ideal forms of financing, loans where initial monthly payments equaled no more than the cost of interest and sometimes less.

But now the game has changed. Freddie Mac — a major buyer and packager of mortgages — has announced that starting in September it will substantially change the way it purchases subprime adjustable-rate mortgages (ARMs). From this point forward loans with little down and tiny payments up front are going to be much tougher to get. Freddie Mac will not buy subprime loans unless the borrower is qualified to pay for the loan at its fully-indexed and fully-amortizing rate and not merely an upfront and low-ball "teaser" rate.

Freddie Mac will require stronger proof of financial capacity. For most borrowers this will mean showing tax returns and W-2 forms. Freddie Mac wants subprime lenders to collect money each month to assure that property taxes and insurance are being paid.

"Right now," says Jim Saccacio, chairman and CEO at RealtyTrac.com, a leading online marketplace for foreclosure properties, "the new Freddie Mac standards apply only to subprime loans, mortgages used to finance borrowers with high-risk credit records. However, the potential for excess risk also exists for loans for more-qualified borrowers. The result is that borrowers in every credit category would be smart to assume that mortgage standards are about to tighten throughout the marketplace."

Freddie Mac's rules are important because they create big profits for lenders. Freddie Mac buys loans from lenders-lots of loans. According to The New York Times the company has purchased subprime loans worth $184 billion. The catch is that Freddie Mac only wants loans that meet its standards. If you're a lender you want to meet the requirements of Freddie Mac and other mortgage buyers because then your loans can then be quickly sold. Once sold, the cash you receive can be used to create new loans, new fees and new profits. While the new Freddie Mac standards will plainly impact new borrowers, the real marketplace worry concerns those who now have loans but will need to refinance in the next few years.

Between 2001 and 2006 millions of properties were financed with interest-only and option ARM financing, loans which allowed borrowers to make low monthly payments during initial start periods, the first few years of the loan. Borrowers with such financing know-or should know-that once initial start periods end the loans can only be continued with far higher monthly payments, in some cases payments that will double. Despite the potentially bankrupting impact of such larger monthly payments most borrowers did not worry and with some reason: As start periods ended properties could be refinanced so borrowers could get another few years of low monthly payments.

Now, however, the ground rules have changed.

First, if the original loan was obtained with a "stated income" mortgage application that contained-shall we say, "generous" and unchecked income estimates-new applications will demand verifications and proof. Without evidence of real income, borrowers will be unable to refinance.

Second, if the original loan application was obtained with a full-documentation application that had every number checked and verified. In practical terms, suppose buyer Dixon qualified to borrow $200,000 in 2005. He now has the same income and credit, he can document everything, but his loan application will be judged on his ability to pay the real monthly cost of the loan and not just a payment based on an up-front teaser rate. The result? It may be that he can only borrow $175,000 in 2007. This means Dixon cannot refinance unless he can also pay down a substantial chunk of his existing debt in cash-$25,000 in this example. Without the additional cash Dixon is effectively locked into his existing loan-the very loan that he doesn't want to pay or perhaps can't afford to pay once the "start" period ends.

For some borrowers the new rules mean existing loans-especially recent loans-cannot be refinanced. Unfortunately the alternatives to refinancing may also be unworkable because larger payments may be unaffordable; in slowing markets homes may not sell at a profit and rents may be insufficient to cover monthly mortgage costs. For too many borrowers, it will no longer be possible to delay mortgage problems by refinancing, an option that could have prevented foreclosure and bankruptcy.

Are the new standards too harsh? Did Freddie Mac do the right thing?

"Freddie Mac," says RealtyTrac's Saccacio, "deserves credit for being the first to make a terribly tough choice. It's the right decision, one that will be painful now but a strategy which will ultimately result in far fewer foreclosures, a reduced number of lender failures and smaller investor losses."

4:29 PM - Apr. 22, 2007 - comments {0} - post comment

Spring Spruce-ups

4:23 PM - Apr. 20, 2007 - comments {0} - post comment

Hooked on real estate TV shows?

Do you love to watch this real estate shows on Cable?  Well, there's a new one that just might catch your interest.

With the new TV series "Real Estate Confidential" to premiere nationwide Sunday, March 25 at 8 p.m. ET/PT, the Fine Living TV Network utilizes for the first time the docu-drama TV platform to help viewers make informed decisions when it comes to life's biggest investment - the home.

The nerve-wracking roller-coaster ride of real estate negotiations leaves the lives of many home-owners hanging in the balance. Fine Living's "Real Estate Confidential," therefore, helps calm those nerves by going behind the scenes to help viewers find out what happens before the "SOLD" sign goes up.

This informative, yet entertaining new half-hour TV docu-drama shadows Los Angeles' most powerful real estate agents as they expose the art of the deal, putting their powerful egos and skills to the test in order to get the most for their clients.

Along the way, these hungry, yet funny and professional agents reveal the insider tips and insights used to price homes, prepare for quick sales, and the imaginative and often wild strategies used to "sweeten the deal" - especially when it comes to selling a home with a life-sized, glass tree planted in the middle of a living room.

Over the course of the 13 episode season, a number of colorful characters emerge including a mother and son team, the self-proclaimed ‘Divas of Real Estate' and a team of Realtors called ‘the Bizzy Blondes,' who happen not to be blonde. Each face as many ups and downs as the market itself.

From the sale of town-homes to multi-million dollar residences, "Real Estate Confidential" follows every type of transaction from loft hunting to estate sales to foreclosures, each time offering insider information designed to help viewers better understand their own real estate endeavors.

"Our goal with ‘Real Estate Confidential' was to create a highly entertaining yet informative series on the inner workings of the real estate profession," said Joel Rizor, Executive Producer and President of Screen Door Entertainment. "Whether you're a current or prospective homeowner or just love good entertainment, there's a little something for everybody in this program."

"Real Estate Confidential" premieres Sunday, March 25 at 8p ET/PT with a second episode at 8:30p ET/PT. Premiere week continues Monday-Friday starting Monday, March 26 weeknights at 8p ET/PT.

Starting Tuesday, April 3, "Real Estate Confidential" will air at its regularly scheduled time Tuesdays and Wednesdays at 9:30p ET/PT and weekends at 9:30p ET/PT.

4:20 PM - Apr. 18, 2007 - comments {0} - post comment

Planning the landscaping

Planning the landscaping for your home is as important as planning the interior spaces.  The folks at msn.com have some great ideas on how to begin.

When you step into a really well-designed landscape, something just feels right: There's a sense of pleasure, of comfort, of being at home. Although you might be tempted to think that this sensation arises from a connection with nature, your reaction is really the result of considerable human contrivance, the product of a series of principles that operate behind the scenes of all well-designed landscapes.

Of the many design considerations at work, perhaps the most important is ensuring that the various elements of your landscape work together to connect your garden to your house stylistically. Remember, your house is the most important part of your garden (the landscape was, most likely, laid out around your dwelling, not the other way around), and without a cohesive style that complements the architectural design, even the costliest and most finely wrought landscapes will fail to satisfy.

Before you plant a single bush or lay a single brick, begin by thinking about your house and garden not as separate elements but as one cohesive unit: your property. In the same way that you choose a unified decorative style for the rooms of your house, you should also create a unified theme for the landscape — one that ties the various parts of the yard together as it unites the garden with the house. You can always reevaluate your current landscape, just as you might add to or rearrange the living room furniture or repaint your kitchen walls.

Formal Gardens
Formally styled gardens typically arrange spaces symmetrically around two principal axes: one radiating out from the house, the other intersecting the first toward the rear of the lot. Together they form a large cross whose center is often marked by a design element such as a rectangular pool. In some formal plans, a gazebo acts as a terminal focal point along the main axis from the house, with the expansive lawn area surrounded on all sides by perennial beds. Evergreens, allées, hedges, and walls add structure to this design.

Semiformal Gardens
A semiformal approach works with the same double-axial design as the formal plan, but the overall effect is much more relaxed. In place of a rigid, hard-surfaced terrace, this design may substitute a grass oval bordered by evergreen shrubs. The dominant lawn and the rectangular pool in the formal plan have been replaced with a geometrically designed cottage or herb garden. Although this plan is as balanced as the previous one, its planting scheme, with masses of flowers, vegetables, and herbs spilling out of the beds, is far less formal.

Natural Gardens
A natural approach to landscape design relies less on geometric division than formal designs do, favoring a softer look of meandering curves and stepping-stone walks. Instead of a vegetable garden, this scheme may feature a rock garden with a free-form pool or waterfall in addition to naturally pruned, mostly evergreen plantings.

Choosing a Style
So how would you choose among these three approaches? Although it's true that each of these plans may physically fit the lot in question, the ultimate decision will depend on the architectural style of the house and the taste and budget of the homeowners. Often there may be several plausible options for every landscape, but one style is generally better suited to a site than others, and some remain completely inappropriate.

So simply step back and take your cue from your house. What feeling does your home exude? Is it formal and symmetrical or whimsical and delightfully offbeat? Is the ambience cultured and urbane or informal and country? Does your home invoke tradition or reject it? Whatever it does, choose a garden style that follows.

For example, a naturalistic approach would best suit a rustic log cabin, lakeside chalet, or modernistic house. But this loose, asymmetrical design would seem out of place next to the symmetrical lines of a center-hall Colonial. (This "natural" style, by the way, is also the most difficult to carry off: The more informal the garden, the harder it is to make the landscape look convincing and real.)

A far better option for a Colonial, Neocolonial, or colonially inspired house (which takes in most modern box-style houses based on classical precepts) would be the semiformal approach, which closely resembles the actual gardens of the Colonial and Colonial Revival periods and echoes the symmetry and balance so present in the architecture of those times. Similarly, a columned Greek Revival, large Georgian, Federal town house, or other equally grand or austere traditional structure would look most at home in formal surroundings. Where do you and your house fit in? Take a good long look at your house and your lifestyle, and be sure your garden plans reflect and complement both. Once you have decided what the overall style and mood of your garden should be, picking out the right plantings, furniture, and ornaments becomes simpler and more rewarding.

4:16 PM - Apr. 16, 2007 - comments {0} - post comment

The Truth about Appraisals

Tim Ray of Apollo Mortgage gives us his insight into how appraisals work.

The appraisal process often baffles consumers. They may feel that their home is worth a higher dollar amount, and so the appraised value doesn't always make sense to them. It is important to know that the appraiser is completely independent from lenders, buyers, sellers, and Real Estate Agents, and that the guidelines to which they adhere are dictated by the Uniform Standards of Professional Appraisal Practice (USPAP) and Fannie Mae. In most states, the mortgage lenders must also disclose the purpose of the appraisal, as each transaction carries its own set of rules.

In essence, these important guidelines help appraisers put a fair market value on homes based on comparable sales in the same area, and the home must be bracketed in size and value.

For example, there is no set dollar figure associated with a great view, pool, spa, bathroom upgrades, etc. If a homeowner installs a custom pool that cost them $30,000, but the local marketplace supports the value of a pool at $15,000, then that item will be bracketed as [$15,000] on the appraisal.

Upgrades can usually be expressed at a higher percentage of their value in newer homes because the only way to obtain those upgrades was to put more money into the cost of building the home. On the other hand, the upgrading or remodeling of an older home is rarely reflected in full in the final appraisal. This is because typically 25-40% of the project involves demolition and the fixing of issues that aren't uncovered until the project has already begun, such as plumbing or wiring that may need updating.

Ultimately, the value of the upgrades must be supported by comparable examples within the same marketplace. These comparisons must be drawn from current market activity within the last six months. This is a safeguard to prevent appraisers from attaching too high a value to the home in question, and opening up the appraisal for review. This guideline further states that appraisers can only base their opinion on the value of homes that have actually closed escrow.

12:38 PM - Apr. 14, 2007 - comments {0} - post comment

Gotta' love that green tea

The folks at the food section of Yahoo.com have summarized all the reasons why we drink green tea every day.  If you don't, you should!

The steady stream of good news about green tea is getting so hard to ignore that even java junkies are beginning to sip mugs of the deceptively delicate brew. You'd think the daily dose of disease-fighting, inflammation-squelching antioxidants - long linked with heart protection - would be enough incentive, but wait, there's more! Lots more.

Cut Your Cancer Risk
Several polyphenols - the potent antioxidants green tea's famous for - seem to help keep cancer cells from gaining a foothold in the body, by discouraging their growth and then squelching the creation of new blood vessels that tumors need to thrive. Study after study has found that people who regularly drink green tea reduce their risk of breast, stomach, esophagus, colon, and/or prostate cancer.

Soothe Your Skin
Got a cut, scrape, or bite, and a little leftover green tea? Soak a cotton pad in it. The tea is a natural antiseptic that relieves itching and swelling. Try it on inflamed breakouts and blemishes, sunburns, even puffy eyelids. And that's not all. In the lab, green tea helps block sun-triggered skin cancer, whether you drink it or apply it directly to the skin - which is why you're seeing green tea in more and more sunscreens and moisturizers.

Steady Your Blood Pressure
Having healthy blood pressure - meaning below 120/80 - is one thing. Keeping it that way is quite another. But people who sip just half a cup a day are almost 50% less likely to wind up with hypertension than non-drinkers. Credit goes to the polyphenols again (especially one known as ECGC). They help keep blood vessels from contracting and raising blood pressure.

Protect Your Memory, Or Your Mom's
Green tea may also keep the brain from turning fuzzy. Getting-up-there adults who drink at least two cups a day are half as likely to develop cognitive problems as those who drink less. Why? It appears that the tea's big dose of antioxidants fights the free-radical damage to brain nerves seen in Alzheimer's and Parkinson's.

Stay Young
The younger and healthier your arteries are, the younger and healthier you are. So fight plaque build-up in your blood vessels, which ups the risk of heart disease and stroke, adds years to your biological age (or RealAge), and saps your energy too. How much green tea does this vital job take? About 10 ounces a day, which also deters your body from absorbing artery-clogging fat and cholesterol.

Lose Weight
Oh yeah, one more thing. Turns out that green tea speeds up your body's calorie-burning process. In the every-little-bit-counts department, this is good news!

12:15 PM - Apr. 12, 2007 - comments {0} - post comment

Got an old home? Here's how to update it!

Eric Bramlett of Austin Texas Real Estate Guide has given us another great article.  This one gives ideas on how to update your home.

Everyone loves to update their homes, and if you live in an older home in an appreciating neighborhood, it can be a fantastic investment. There are some pitfalls to avoid, which can cost a homeowner quite a bit of money because of no return on investment. However, it's better to focus on what TO do and stay the course.

1. Raise the Roof!!!

Not literally, but gut the attic, and raise the ceiling in, at least, the living room. Older homes typically have 8 foot ceilings, and it's one of the first characteristics that buyers notice. It's relatively inexpensive, when you compare your return on investment, to demolish the ceilings of your older home and sheetrock over your new, vaulted ceiling. It's amazing how much larger and lighter your home will feel.

2. Knock Down Walls

Literally, knock down as many walls as you can and still retain the integrity of the home, and the NECESSARY separation of rooms. If you compare older homes to newer homes, you'll notice that older homes are typically "choppy" while newer homes feel "open and flow well." This is due to "line of sight." Newer homes opt for less separation in rooms. You can create this same feeling by demolishing a half-wall that separates your kitchen from the living room or knocking down the wall between the living room and dining room to create one grand room. You'll be AMAZED at the difference it makes.

3. Overhaul Your Kitchen and/or Master Bathroom

These are the two rooms in the house that you can ALMOST go overboard and still get your money back when you sell the home. Refinish or replace the cabinetry, put in new tile and sinks - even install a new, stand-up shower! When (or if) you put your home on the market, you should see a GREAT return on investment.

4. Add a Master Bathroom

The 1-Bathroom houses from the 1970's and earlier are now obsolete. Americans have decided that we like a private bathroom for ourselves and another bathroom for our guests and children. While 90% of the house additions are bad ideas because they don't flow well or create poorly usable space, a master bathroom addition is a fantastic way to add more square footage, and more value to your home. Make SURE that your builder ties in the new slab to the old, and make sure that the addition is done properly. A poorly designed or executed addition never adds value - most buyers immediately imagine demolishing the work.

5. Xeriscape Your Lawn

It's trendy, it's cheap - it should be a go! Your homes curb appeal is the first thing that buyers notice, and it's how buyers decide whether or not they'll "click on your house" online to further investigate the interior. You can xeriscape a ¼ acre lot for around $3000, and you'll more than make up for that when your home goes on the market. Furthermore, it's environmentally & fiscally responsible. Stop wasting water!

6. Paint!!!

It's fairly obvious, but painting your home modern, neutral colors makes a HUGE difference in the appearance of the home. And when you factor in the cost - roughly $0.75/s.f. - it would be a HUGE mistake to forego painting your home when you decide it's time to modernize it. If you're planning on staying in the home for some time, paint it whatever colors you wish, but plan on repainting right before it's time to put it up for sale. If you plan on updating your home in order to sell it, go with neutral colors so that it will appeal to the widest audience.

7. Put in Wood Floors

You won't ALWAYS get your money out of installing wood floors. If you're in a great area, and it's time to replace the floors, look at the cost difference between tile, pergo, and wood. If your home will sell for $250k+ then forget about pergo and, if you choose tile, make sure it's not cheap tile. If the cost difference between wood and your other options is negligible, then go with wood - it appeals to the most buyers.

Updating your older home can be very fun, very rewarding, and potentially very lucrative. Older homes in established neighborhoods are ripe for updating and can draw a premium on the marketplace. Make sure and follow these guidelines, and you should see a great return on your investment.

11:47 AM - Apr. 12, 2007 - comments {2} - post comment

Don't let Buyer's Remorse ruin your dream

But when it comes to one of the most expensive purchases in a consumer's life, a home, feelings of remorse can be a lot more intense, easily rattling otherwise confident home buyers and causing them to second-guess what they liked about a house in the first place.

Luckily, many local real estate markets today are buyer's markets; there's lots of inventory to look at and often ample time to negotiate on price, said Eric Cunliffe, senior vice president of RealEstate.com. Those factors greatly decrease the chances of buyers completely changing their minds-and wishing they'd gone for a different house-after the fact.

"In 2005, people felt desperate to get out there and get there first and make their offer," added Nancy Riley, president of the Florida Association of Realtors. "Now they do have the luxury of being able to negotiate."

That said, buyer's remorse often pops up regardless of what the real-estate market is like, especially for first-time buyers. Unless someone is "particularly unemotional" or has gone through the process of buying a home many times, it's very normal to second guess a home-purchase decision, Cunliffe said.

In fact, a buyer's market can introduce additional feelings of remorse when an interested buyer shops extensively, finds a home of interest but waits too long to make an offer, said psychologist David W. Stewart, a professor of marketing at the University of Southern California. Stewart's area of focus is consumer psychology.

"You might think that buyer's remorse could be prevented if people spent more time shopping … but there's also a nonbuyer's remorse as well," he said.

A client of real estate agent Kristy Ryan understands that concept well. The prospective buyer wouldn't budge on his offering price, fearing he would overpay, and another buyer scooped the place up, said the Realtor with Re/Max Fine Properties in Scottsdale, Arizona.

"Now, we can't find him anything remotely as good … and (the prices) are substantially higher," she said.

Also playing in the background of a home buyer's mind is the news they hear about the health of local housing markets. When they hear that prices are falling and there's an oversupply, "that tends to paralyze some people," Stewart said. The news could also cause them to second-guess their recent purchase, fearing that they could have bought for less.

But there are ways to beat buyer's remorse before it sets in, as well as knock down those pangs of regret if they do happen to invade a buyer's psyche. Here are five of them:

1. Do all the homework
It's essential for buyers to know what they want — both in terms of housing needs and the neighborhood, Cunliffe said. That means being satisfied with such factors as the distance from work and the quality of the schools before settling on a home.

"The more work they do on that up front, the less likely they are to make a mistake," he said.

The more buyers shop around, the more educated they will be on a particular market, Ryan added, so look around and learn about how far a real estate dollar will stretch in the area. Prospective buyers often pay attention to news stories about the real estate market, but it's important to also be aware of the longer-term trends in the local area, she added.

"I think a lot of buyers in times like this, when markets are soft … they absolutely sit on the sidelines and wait or they keep shopping until they find a screaming deal," Ryan said. She reminds people that the Phoenix market, which she serves, is a growth market that is "not going to stay in the doldrums forever."

2. Get preapproved for a mortgage
Getting preapproved for a mortgage before house hunting will remove another fear that buyers commonly have before or after committing to a particular property — that they won't be able to afford the monthly payments, Cunliffe said.

In fact, Ryan won't take a client to showings without a preapproval. Once a professional lender has "done the math," buyers can be more confident in what they can afford, she said.

3. Call for reinforcements
If fears start to creep up after the paperwork is finalized, enlist the ears of friends, parents or peers who can reinforce the decision to buy, Stewart said. A realty agent can also help out by reminding a client of why the home was originally a favorite or reassuring the buyer that a good price was secured for the property.

One of Ryan's clients bought a home and witnessed a nicer home on the same block sell for less several months later. Her advice: Sit tight, wait until the market gets better and enjoy the house without worrying about the neighbors.

"I especially tell people 'This is not the market we flip in. You need to sit tight for three years, maybe even four,'" she said.

4. Personalize your new space
To feel more connected to the new home, make it your own, Ryan said. Paint the walls or change the carpets. Decorate the walls. The changes don't have to be expensive, but if it reflects you and your attitudes, the home will start to feel more like your own.

The process of individualizing the home will help create a sense of ownership, Stewart said. "You're less likely to feel remorse because it's yours," he said.

5. Don't dwell on it
Finally, those who fear they've bought the wrong home need to remember that they made an educated, thoughtful decision when they signed the paperwork. There's also not much they can legally do to get out of it if they change their mind after the contract is finalized.

"People really need to remind themselves of what they knew at the time they made the decision," Stewart said. "It's not productive for people to dwell on what might have been."

Remember, when many markets were peaking, it may have made sense for buyers to worry they were paying too much, Cunliffe said. Now, that concern has lessened in many places as prices have come down and have begun to stabilize. At any time, however, "trying to time the market doesn't really make a lot of sense," added Stewart.

Regret may also dissipate somewhat when an unhappy buyer realizes the alternative — buying and selling all over again, Stewart said.

6:50 PM - Apr. 10, 2007 - comments {0} - post comment

Get and eat the right oils

The Lowdown on Oil
Oils that originate from vegetable, nut, and seed sources provide the essential fatty acids that are critical for our nerve and brain functions. The typical vegetable oils that can be found at supermarkets have undergone chemical and heat processing that destroy the quality of the oil - bleaching, cooking, defoaming, distillation, extraction, refining, and the addition of preservatives. Additionally, many of these oils are exposed to light and air and are even potentially filled with pesticides.

All of this causes the formation of free radicals, which undermine the health benefits of consuming essential fatty acids. To ensure that you are receiving all of the possible benefits from your oil, buy organic, cold-pressed, minimally processed oils at your local health food store. Be sure that you consume oil within three months; to prevent it from becoming rancid, store your oil in the refrigerator in dark glass containers.

Fats: The Good, the Bad, and the Ugly
There are three types of fat: monounsaturated, polyunsaturated, and saturated.

Monounsaturated fats - including olive oil, sesame oil, canola oil, almond oil, flax oil, and fish oil - are good fats. These contain essential fatty acids such as omega-3 and gamma-linolenic acid (GLA) that are critical in brain development and function, skin health, vascular health, proper immune function, fertility, and normal physical development.

Polyunsaturated fats, such as margarine, corn oil, hydrogenated safflower oil, and sunflower oil, also contain essential fatty acids. Unfortunately, these fats are highly refined and contain large amounts of trans fat. Trans fat, created by hydrogenating vegetable oil to make it spreadable, is implicated in both cancer and heart disease.

Saturated fats are the bad kind of fat. Included in this category is butter, peanut oil, coconut oil, palm kernel oil, and lard. These saturated fats elevate cholesterol and triglyceride levels, leading to an increased chance of heart attack and stroke. These oils are best avoided.

Two Stand-Out Oils
The essential ingredient of the Mediterranean diet, olive oil, has been found to have beneficial effects on blood lipids and it may even lower blood pressure. According to the World Health Organization, nearly 60 percent of strokes and 50 percent of heart disease are associated with high blood pressure.

Hypertension is estimated to be the cause of 7.1 million deaths per year worldwide. A recent study has concluded that olive oil intake is "inversely associated with both systolic and diastolic blood pressure." The bottom line: consuming more olive oil is linked to lowered blood pressure.

Sesame oil - the most common oil consumed by Chinese centenarians - is enjoyed for its delicious nutty flavor and also possesses some considerable therapeutic properties. Chinese medicine lists sesame as a blood builder, a kidney and liver tonic, and a bowel protector and regulator. It is rich in phytic acid, the antioxidant that may prevent cancer. Lignan sesamin, one variety of sesame oil, appeared to radically reduce cholesterol levels in the bloodstream and liver of rats.

To benefit your health and enhance your meals, add some olive oil to your food and salads; sprinkle sesame seeds and oil into your dishes regularly. Some other excellent choices for oils include: walnut oil, flaxseed oil, and soy oil.

May you live long, live strong, and live happy!

6:47 PM - Apr. 8, 2007 - comments {0} - post comment

Chase offers mortgage help to deployed military

"My husband was the chief of mobilization at the Pentagon, giving me the opportunity to speak with generals and the chief of family readiness (FRG)," says Ryan, whose son is in the Marine Corps. "Instead of guessing about what was needed, we were able to get that information directly from the servicemembers and their families."

According to Ryan, the decrease from civilian to military income is definitely a chief concern. It is the reason that the federal government implemented the Servicemembers Civil Release Act (SCRA) to provide certain protections for deployed servicemembers. For example, by law, interest rates are capped at 6% for the duration of a military obligation. While this provides some relief, it may not be enough. Uncertainties still remain about managing other expenses and maintaining a comfortable standard of living. The Chase Program goes above and beyond the SCRA requirements.

To help ease servicemembers' financial burdens, the Chase Military Mortgage Program offers a $300 closing discount upfront and provides assistance to Guard and Reserve servicemembers from the time of mobilization and for more than a year after demobilization. After demobilization, borrowers have the option to double up on payments, modify the loan to stretch out the payments or refinance the loan at the current market rate.

"If you are used to a family income of $100,000 and your spouse gets called to active duty and you suddenly lose $40,000 of earnings it's very difficult to maintain your lifestyle," says Lorraine Leacock, Chase customer and wife of Brigadier General Edward Leacock, deployed for over a year now.

Leacock met Ryan while describing her Gifts for Heroes charity that she runs for deployed soldiers. "In the course of discussing the charity and why I run it, I got into how unhappy I was about the mortgage company I had used before," says Leacock.

Ryan informed her of what she could expect from Chase's Program in contrast to her former lender. "The Chase Program is far superior in addressing military needs and requirements of the Servicemembers Civil Relief Act," says Leacock.

As soon as servicemembers receive their mobilization orders lasting 30 days or longer, they then have the choice to defer part or all of their mortgage payments with no late fees or negative credit. To qualify for assistance, the mortgage must be closed under civilian income, servicemembers must notify Chase after receiving their orders and be in good standing on the existing mortgage and up-to-date on their other credit obligations.

With 36 Chase Military Mortgage representatives spread across the country, communication and a dedication to customer service heads Chase's Military Mortgage awareness campaign. Potential applicants are often working and living as civilians in their communities, rather than on army bases, so word-of-mouth has been Chase's greatest marketing venue. The Program provides a toll-free telephone number (866-313-4192) and all calls are returned promptly.

In the future, Chase hopes to provide additional financial services for servicemembers, maintaining the true meaning of a home for those who "leave the warm, cozy place they call home, to go and protect the rest of us," says Ryan.

"It's very scary to know your loved ones are so far from home and in harm's way. The stress relief that comes with this is just huge," says Ryan. "What we're doing at Chase is a great thing and has helped a lot of people in a tough situation."

6:42 PM - Apr. 6, 2007 - comments {0} - post comment

Feng Shui your way to clean

Spring cleaning and clutter clearing might sound exciting when you think of the results, but not really of the process itself! Here is what you can do to bring some helping energy with feng shui:

1. Open all windows and aerate the space well to bring fresh energy.

2. Get dressed in clothing that is practical, made of natural fibers and makes you feel good!

3. Bring some Fire Element colors for an additional boost of energy to the space you are working at. In the spirit of St. Patrick's Day and spring in general, the color green belongs to the Element of Wood. Green is the color of renewal, fresh energy and new beginnings.

Green is very nourishing to your health, it calms your nerves and balances your whole body by bringing healing vibrations from Nature. When working with Green, it is important to have at least several different shades in order to maximize its energy effects.

A great way to bring color Green is with actual plants that have lush green foliage. The color of growth and healing, Green should be freely used in the East, Southeast and South areas of your space.

From fresh spring color of the newly opened leaves to the strong Green of a mighty oak tree - there are literally hundreds of greens to choose from.

4. Put on the music you love and start small, focusing on one area to give you a sense of accomplishment.

5. Finish the process before you get tired of it and treat yourself to something really nice, be it a good cup of coffee at the best cafe in town or a movie with a friend.

By following these steps you will create the energy of excitement around a process that is usually avoided, and your place will be breathing new energy in no time!

6:39 PM - Apr. 4, 2007 - comments {0} - post comment

Housing Recovery this year?

David Lereah, NAR's chief economist, said there is some ambiguity about the current housing market. "Our goal each month is to fine-tune the forecast based on the latest housing data and a variety of economic indicators, but extraordinary weather variations are skewing home sales and clouding the picture," he said. "Underlying trends point to a housing recovery in 2007, but it will take a couple months for us to get a better handle on it. Existing-home sales are expected to slowly improve from what appears to be the cyclical low last fall, but we think there will be some additional pain in the new home market, which hopefully will start to rise later in the year."

Existing-home sales are projected at 6.42 million this year and 6.66 million in 2008, compared with 6.48 million last year. "Although existing-home sales will be marginally reduced due to subprime lending restrictions, they should be gradually rising this year and next. However, total sales this year will be fairly close to 2006 because last year started high and ended low," Lereah said.

"Lending problems in our nation's subprime marketplace are building, which could inhibit future housing activity and further dampen our forecast. Even so, these problems are likely to be contained and not spill over into the prime mortgage market."

New-home sales are forecast at 950,000 in 2007 and 981,000 next year, down from 1.06 million in 2006. Housing starts will probably total 1.50 million this year and 1.56 million in 2008, in contrast with 1.80 million units last year.

The 30-year fixed-rate mortgage is expected to rise to 6.7% by the end of the year. Last week, Freddie Mac reported the 30-year fixed rate dropped to 6.14%. "Over the last few years, mortgage interest rates have moved in surprising directions — the unexpected dip we're seeing now, and a rise in mortgage applications, are positive signs," Lereah said.

"With soft home prices and lower interest rates, affordability has improved for home buyers and that is encouraging them to get into the market."

The national median existing-home price is projected to rise 1.2% to $224,500 this year, following a 1.0% gain in 2006. The median new- home price should grow 1.7% to $249,600 in 2007, following a 1.9% increase last year. Stronger gains are probable in 2008, with existing-home prices rising 3.1% and new-home prices growing 3.0%.

For critics who don't understand the weather impact on seasonally-adjusted sales, Lereah explained we're likely to be reminded about the consequences throughout this spring. "Here's what's happened and how it's likely to play out. In December, unusually mild weather brought out shoppers and January existing-home sales rose," he said. "However, a sudden chill in January slowed shopping activity relative to December and pending sales, based on contracts, fell.

"We have yet to see the biggest weather impact — February's winter storms brought markets to a halt in much of the country, and it was the coldest February since 1979 — that should drag sales down in March," Lereah said. "This means we may not see an upturn in closed transactions before May 25 when we report sales for April."

6:36 PM - Apr. 2, 2007 - comments {0} - post comment

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