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April 2009

6 questions to ask about a reverse mortgage

Reverse mortgages have become an increasingly important financial tool for people 62 and older who want to remain in their home and fund their retirement. And, with 78 million Baby Boomers approaching retirement, interest is expected to grow. Despite this, many Americans are still unclear about how reverse mortgages work and when they may be appropriate.

“A reverse mortgage is a loan secured by the value of a house, where no repayment of the loan is required until the borrowers permanently vacate the home,” explained Peter Bell, president of the non-profit National Reverse Mortgage Lenders Association. ” Historically, reverse mortgages have been of particular interest to those with limited sources of liquid income, these days, there are many new retirees considering a reverse mortgage as an option after looking at all the other assets they’ve accumulated. This tool can help a person avoid taking Social Security too early or defer taxable withdrawals from IRA or 401(k) balances.”

“Reverse mortgages enable many Americans to ‘age in place’ comfortably in retirement,” said Donna DeMaio, president of MetLife Bank. “For many people, reverse mortgages are a good way to continue to stay where they are, remain independent, and live a more fulfilling life. Modern retirement income planning is about making the most of what you have, and reverse mortgages can be an important part of that plan.”

There are several advantages to securing a reverse mortgage. Borrowers can continue to live in the home as long as they want, and the amount owed to the bank by the borrowers when the property is sold will not exceed the lesser of the mortgage or its sale value. Interest and charges, including origination and closing costs, accumulate until that time, with no periodic payment required. As with traditional mortgages, the bank does not own the client’s home: borrowers retain ownership, and are responsible for paying property taxes and homeowner’s insurance, as well as property repairs.

So, when does a reverse mortgage make sense? Consider the following questions:

1. Do you qualify? Are you and any co-owner of the home at least 62 years old? Do you own your home and live in it as your primary residence? These qualifications need to be met before a reverse mortgage can be considered.

2. Do you have equity built up in your home? For individuals and families who have diligently paid down mortgages for years, and have worked hard to maintain and improve their property, a reverse mortgage is a way to realize a portion of that financial value.

3. Are you satisfied with your current level of retirement income? Many individuals in retirement or approaching retirement are finding that traditional retirement tools, including IRAs, pensions, and 401(k)s, do not provide enough income to comfortably fund current or anticipated living and healthcare expenses. A reverse mortgage can provide greater peace of mind and improve one’s quality of life. Taking reverse mortgage proceeds in regular monthly payments (the “tenure” option) that last as long as one lives in the property is a way to boost cash flow each month, and usually will produce a lower loan balance than a lump sum distribution when the time comes to pay off the loan.

4. Do you want to retire your existing mortgage? Many retirees are still paying a conventional mortgage, and as a result, have less disposable income than they would like to have at the end of the month. Depending upon the amount, a reverse mortgage can pay off an existing mortgage, freeing up money for other things. To gain a better understanding of where you stand, the AARP has a free reverse mortgage calculator that’s available at www.rmaarp.com.

5. Is a reverse mortgage a better option than a home equity loan? For many retirees, the income and credit requirements on a home equity loan may prove an obstacle to accessing that particular financial tool. A reverse mortgage doesn’t have these requirements.

6. Do you intend to pass your home on to your children or other loved ones? With a reverse mortgage loan, the outstanding balance needs to be repaid when the title changes hands. If one’s heirs wish to keep the home, they may be able to refinance the loan at that time, but it may be necessary to sell the property to repay the loan. Take the time to openly discuss this question with loved ones as an important first step when considering a reverse mortgage. Many families find that their children would prefer to see their parents experience a more comfortable retirement, rather than making the priority obtaining the family home, ‘free and clear.’

11:50 AM - Apr. 30, 2009 - comments {0} - post comment

You CAN start your own business

If you’ve ever found yourself saying: “I should start my own business,” you’re not alone. Most Americans say they have at least considered starting their own business, or have actually done so at least once in their life. 

According to a new survey by FindLaw.com (http://www.findlaw.com), a popular website providing legal information, 61% of Americans have either started or thought about starting a small business, 30% of Americans say they have started at least one small business and an additional 31% of Americans have thought about starting their own business at some point in their lives.

Small businesses (defined as 500 or fewer employees) are an important part of the economy, generating a significant portion of new jobs and employ about half of all U.S. workers and have generated more than half of the new jobs created annually over the last decade, according to the Small Business Administration.

“Owning your own business is a dream that many people have and that many people act upon,” said Stephanie Rahlfs, an attorney and editor at FindLaw.com. “Even in difficult economic times, people often take advantage of opportunities to start a business where they see unmet needs, a chance to turn a personal passion or interest into a business, or because they want to have more control and responsibility over their work life.

“Starting a business involves many legal and regulatory requirements, including state and local licensing and registration, taxation, zoning, intellectual property and financing,” cautions Rahlfs. “Knowing what the requirements are, what information you’ll need, and where to find good advice and help are essential. Research has found that businesses that make it through the first four years have a much better chance of lasting long-term.”

If you are thinking about starting your own small business, follow these suggestions to help get your business off the ground and keep it going for the long haul:

1. Save up as much money as possible before starting. All too often, people go into business without any savings, exclusively using loan money from friends or banks. They except to be able to start paying the loans back right away with their profits. What these business owners don’t realize is that it can take months or years to make a profit.

2. Start on a shoestring. Think small. Don’t rent premises if you can work somewhere else, and don’t hire employees until you can keep them busy. People who start their small business on the cheap, often in a garage, den, or some other scavenged space, and create their first goods or services with more sweat than cash, have the luxury of making their inevitable rookie mistakes on a small scale.

3. Protect your personal assets. When you go into business for yourself, you are usually personally liable for all judgments and debts that the business incurs. This includes business loans, taxes, money owed to suppliers and landlords, and any judgments against the business as a result of a lawsuit. If you don’t protect yourself, a creditor can go after your personal assets, such as your car and your house, to pay for these debts.

4. Understand how - and if - you will make a profit. You should be able to state in just a few sentences how your business plans to make a substantial profit. For starters, you need to know your costs: how much you’ll spend purchasing inventory, paying the rent, compensating any employees, and covering what is likely to be a surprisingly long list of other costs. Then you can figure out exactly how much you need to sell each month, for how many dollars, to cover those expenses and have an adequate profit besides. These numbers are all you need to create a “break-even analysis.”

5. Make a business plan. Understanding your profit numbers and creating a break-even analysis is the first step in making a business plan. For most small companies, the key portions of a business plan are the break-even analysis, a profit-and-loss forecast, and a cash flow projection. Creating a business plan allows you to determine what your projected start-up costs are (how much money you’ll need to save) and what you marketing strategies are (how you’ll reach customers to make sales). If you can’t make the numbers work on paper, you won’t be able to make them work in real life.

6. Get and keep a competitive edge. Building a competitive edge into the fabric of your business is important to long-term success. Some ways to get this edge are by knowing more than your competitors, making a product that is hard or impossible to imitate, being able to produce or distribute your product more efficiently, having a better location, or offering superior customer service.

7. Put all agreements in writing. The laws of your state require you to put some contracts and agreements in writing: Contracts that will last longer than a year, contracts that involve the sale of goods worth $500 or more, contracts that transfer the ownership of copyrights or real estate.

8. Hire and keep good people. Your goal should be to hire and retain truly excellent employees - not just reasonably competent ones. A highly competent and truly enthusiastic employee is at least two and sometimes even three times as valuable as a person of average skills.

9. Pay attention to the legal status of your workers. When you hire workers as independent contractors, make sure they shouldn’t really be taxed as employees. The IRS can impose substantial penalties against you for not withholding taxes and paying taxes for a worker who is really an employee.

10. Pay your bills early and your taxes on time. In the real world, where a reputation for keeping one’s word is a hugely important asset, a good strategy is to pay your bills up front or pay them early. You gain trust, build a positive credit profile, and have a built-in safety net if things go badly.

11:29 AM - Apr. 28, 2009 - comments {0} - post comment

Solar Energy Demand Grows

The Solar Energy Industries Association (SEIA) released its 2008 U.S. Solar Industry Year in Review, highlighting a third year of record growth. SEIA reports 1,265 megawatts of solar power of all types were installed in 2008, raising total capacity by 17% to 8,775 megawatts (MW). The 2008 figure included 342 MW of solar photovoltaic (PV), 139 MW of solar water heating, 762 MW of pool heating and an estimated 21 MW of solar space heating and cooling.

SEIA president and CEO Rhone Resch stated: “Despite economic pressures, solar energy demand grew tremendously in 2008. Solar is an emerging economic engine, creating thousands of jobs, unleashing billions in investment and building new factories nationwide.

“To continue growing, create jobs and meet renewable energy goals, we need smart federal policies, like a renewable portfolio standard designed to deploy solar resources. Today’s technology combined with the right policies will help us double U.S. solar production and move to a clean energy future.”

SEIA chairman Roger Efird, president of Suntech America, Inc. added: “The growth of solar manufacturing jobs in the U.S. was a breath of fresh air for communities hit hard by the recession. The recently enacted manufacturing tax credit will encourage companies, to invest in new U.S. operations. With the right policies, solar deployment will continue growing and create thousands of new green-collar manufacturing jobs in states where they are needed most.”

Report highlights include:

-Overall U.S. solar industry capacity increased 17%. Installed grid-tied PV increased 58% in 2008 and grew at a faster rate (81%) compared to 2007.
-Installed grid-tied PV increased by more than 18,000 installations in 2008 (a growth of more than 27%) compared to 14,306 installations in 2007.
-More than 6 GW (6,090 MW) of utility-scale CSP plants are in the pipeline.
-PV manufacturing capacity increased 65% while production increased 53%.
-Solar water heating installation increased 50% in 2008 (139 MWTh) over 2007 (93 MWTh).

11:26 AM - Apr. 26, 2009 - comments {0} - post comment

5 Tips to De-stress your move

People who are moving are faced with many challenges, and now more than ever they are looking for ways to cut costs, cut down necessities, and still have everything they want. Below are some tips to cut down the cost of the move and at the same time get the service you need:

De-Clutter - Now is the time to clean out your closet and get rid of anything that you don’t need. That old heavy desk in the corner that is not being used and the treadmill that doubles as a clothes hanger. Having a garage sale or giving things to charity will help reduce the weight and cost of a move.

Get a ‘Binding Not-to-exceed’ estimate - One of the costs contributing to a move is the weight of the shipment. With this estimate, if your actual weight is more than the written estimate, you still pay for only the amount of the estimate. But if your actual weight is less than the estimate, then your costs can go down.

Get full replacement ‘valuation’ coverage- When you move, things can get damaged. This coverage is what will protect your goods in the event of any damage.

Furniture assembly & reassembly - If you have a large desk, entertainment center, or table that has to be taken apart and put back together, do it yourself to cut down on costs. If that is not possible, make sure the company you use has these services so you can take advantage of them.

Get a reputable mover - It is important to use a mover that is going to provide the level of service promised to you. Check out the better business bureau website to make sure they are what they say they are.

5:09 PM - Apr. 24, 2009 - comments {0} - post comment

Mark to Market

The current economic crisis is the top news story for nearly every media outlet. But until recently, one of the most important factors that led to this challenging market has also been one of the least discussed.

By popular demand, I am again sending along this highly sought after video and article, unpacking the "Mark-to-Market" accounting issue - with some help from Barry Habib. Barry is a highly respected expert on home loans, who serves as Chairman of MSS, an organization that helps me to stay informed as your trusted advisor.

With the help of some easy-to-understand terms and illustrations, you will learn what it has taken the media and politicians many months to take seriously and begin to address.

Link here now to get the real story: www.mortgagesuccesssource.com/go/markmarket/

5:01 PM - Apr. 22, 2009 - comments {0} - post comment

What in the world is a DTI ratio?

This article is by Ralph R. Roberts who is a consumer advocate, spokesperson for Federal Loan Modification Law Center host of keepmyhouse.com, and author of numerous books, including Foreclosure Self-Defense For Dummies and Loan Modification For Dummies

Ask homeowners about their DTI (debt-to-income) ratios, and they’re likely to respond with something like, “My what ratios?!” However, when distressed homeowners are sizing up their foreclosure options, they need to brush up on DTI ratios. Lenders will be scrutinizing these ratios to determine homeowner eligibility for loan modification and other debt relief.

Homeowners need to know that their DTI ratios are crucial to determining an affordable house payment. The current government plan defines an affordable house payment as one that is no higher than 31% of the homeowner’s front-end DTI. In other words, the house payment or PITIA (principal, interest, taxes, insurance, and any association fees) on the first mortgage cannot exceed 31% of the household’s gross monthly income.

Homeowners should examine both their front-end and back-end DTI ratios:

Front-end DTI ratio is based solely on the house payment. (Under the current government plan, the front-end DTI target of 31% accounts only for the first mortgage. If the home has other liens against it, such as a second mortgage or home equity line of credit, those are accounted for separately as part of the back-end DTI.)

Back-end DTI ratio is based on all monthly debt payments combined, including the house payment, credit card payments, payments on auto loans, and other loan payments.

Calculating the Front-End DTI Ratio

Although the formulas for calculating DTI ratios are simple, homeowners are unlikely to have encountered them in the past. To calculate their front-end DTI, homeowners must divide their house payment by their monthly household income (gross income):

House Payment / Gross Monthly Household Income = Front-End DTI Ratio

This is easy, assuming the monthly house payment includes an amount held in escrow to pay the property taxes, homeowner’s insurance, and any association fees. Such a payment is often referred to as PITIA (principal, interest, taxes, insurance, and association fees).

If they pay property taxes, insurance, and association fees separately, then they have to perform an extra step. Total these additional annual expenses, divide by 12 months, and add the result to their monthly house payment (principal and interest). They can then divide the resulting house payment by their monthly household income to determine their front-end DTI ratio.

Private mortgage insurance (PMI) payments fall outside this calculation under the current government plan. 

Calculating the Back-End DTI Ratio

To calculate the back-end DTI ratio, homeowners should total their monthly debt payments, including: House payment or PITIA, as discussed in the previous section; Any payments on second mortgages, home-equity loans, or home-equity lines of credit; credit card payments; auto loan or lease payments; alimony and other payments on credit accounts or loans.

Now, they should divide their total monthly debt payments by their total gross monthly household income:

Monthly Debt Payments / Gross Monthly Household Income = Back-End DTI Ratio

Exploring DTI Ratios under Obama’s Foreclosure Prevention Plan

The Home Affordable Modification Program accounts for both front-end and back-end DTI ratios. When attempting to reach the 31% target for the front-end DTI, the focus is only on the first mortgage:

For qualifying homeowners, the lender will have to first reduce payments on the first mortgage to no greater than a 38% front-end DTI ratio. Treasury will match further reductions in monthly payments dollar-for-dollar with the lender/investor, down to a 31% front-end DTI ratio.

Borrowers who qualify for a modification but would have a post-modification back-end DTI ratio greater than or equal to 55%, will be provided with a letter stating that they are required to work with a HUD-approved counselor. The modification will not take effect until they provide a signed statement indicating that they will obtain counseling.

Keep in mind that only lenders, investors, and servicers who choose to participate in this program are bound by its guidelines and that the guidelines may change over time. Different lenders may have their own DTI ratio targets and limitations.

1:10 PM - Apr. 20, 2009 - comments {0} - post comment

Tips for selling in today's market

For home owners contemplating selling their homes in the current market, Relocation.com, a leading online consumer resource for moving services, offers several tips to help sellers maximize the final sale price, get the home sold quickly and move on to their new home. While many factors come into play with finding the right buyer at the right time, there are many things sellers can do to help put the odds in their favor.

“Despite the tough economic times, people who want to sell their homes don’t have to wave a white flag in surrender. Relocation.com wants to help educate consumers about the selling process so that they can make smart decisions about moving to a new home,” said Sharon (Ron) Asher, chairman and founder, Relocation.com. “With these sales strategies, consumers can get their homes sold and on to moving into their new residences.”

Tips for Selling a Home in Today’s Market

1. Do not overprice the home. Buyers today are looking for a bargain, and the seller in the end will likely have to bring the price down to meet market demands. The longer the home sits on the market, the stronger the negotiating position of the buyer.

2. Select Internet-friendly pricing. More than 80% of home buyers begin their real estate searches online. Most real estate sites filter the prices in $25,000 to $50,000 increments. So while a creative price of $555,777 may grab attention, buyers who set their search maximum filter at $550,000 will exclude it. Additionally, prices ending in 000 (such as $500,000) tend to sell at a larger discount than homes ending in 500 (such as $524,500).

3. List the home on a Friday. Most buyers are checking out new listings on Fridays so they can see what is new for the weekend.

4. Occupy or stage the home. Buyers appreciate a home that is well attended. A vacant home typically feels cold and empty, while one that is still occupied has a warm, cozy feel, attracting more buyers. However, keep the personalization minimal; having neutral decor and paint colors will make it easier for a buyer to visualize their own style in the home. If a seller moves to a new residence before selling the old residence, it is a good idea to have the home professionally staged as if someone still lives in it.

5. Monitor local foreclosures. Foreclosures are costing sellers money and have become very aggressive opponents in today’s market. If the seller’s neighborhood has a lot of foreclosures, wait until they are sold before listing the home, if at all possible. Most banks are extremely eager to sell, thus creating an underpriced competitor. If the seller cannot wait to list the home, it will need to be priced competitively with the foreclosures, which can dig significantly into the home’s equity.

6. Keep the home neat and clean. With so many foreclosures on the market today, buyers are seeing homes at their worst. If the home is presented in the best possible way, it will attract more positive attention.

7. Keep records. Foreclosures do not come with any disclosures. Sellers who keep updated records, photos and permits handy for the buyer to review will make them feel much more confident about buying the home, giving the seller a competitive advantage over foreclosed properties in the neighborhood.

6:03 PM - Apr. 18, 2009 - comments {0} - post comment

First time homebuyer tax credit revisions

FIRST-TIME HOMEBUYER TAX CREDIT 

As Modified in the American Recovery and Reinvestment Act

Major Modifications Italicized

February 2009

FEATURE	CREDIT AS CREATED JULY 2008 APPLIES TO ALL QUALIFIED PURCHASES ON OR AFTER APRIL 9, 2008	REVISED CREDIT – EFFECTIVE FOR PURCHASES ON OR AFTER JANUARY 1, 2009 AND BEFORE DECEMBER 1, 2009
Amount of Credit	Lesser of 10 percent of cost of home or $7500	Maximum credit amount increased to $8000
Eligible Property	Any single family residence (including condos, co-ops, townhouses) that will be used as a principal residence.	No change All principal residences eligible.
Refundable	Yes. Reduces (or can eliminate) income tax liability for the year of purchase. Any unused amount of tax credit refunded to purchaser.	No change Purchasers will continue to receive refund for unused amount when tax return is filed.
Income Limit	Yes. Full amount of credit available for individuals with adjusted gross income of no more than $75,000 ($150,000 on a joint return). Phases out above those caps ($95,000 and $170,000).	No change Same income limits continue to apply.
First-time Homebuyer Only	Yes. Purchaser (and purchaser’s spouse) may not have owned a principal residence in 3 years previous to purchase.	No change Still available for first-time purchasers only. Three-year rule continues to apply.
Revenue Bond Financing	No credit allowed if home financed with state/local bond funding.	Purchasers who utilize revenue bond financing can use credit.
Repayment	Yes. Portion (6.67% of credit or $500) to be repaid each year for 15 years, starting with 2010 tax filing.	No repayment for purchases on or after January 1, 2009 and before December 1, 2009
Recapture	If home sold before 15-year repayment period ends, then outstanding balance of repayment amount recaptured on sale.	If home is sold within three years of purchase, entire amount of credit is recaptured on sale. Applies only to homes purchased in 2009.
Termination	July 1, 2009 (But note program changes for 2009)	December 1, 2009
Effective Date	Purchases on or after April 9, 2008 and before January 1, 2009. Repayment to begin for 2010 tax year.	All revisions are effective as of January 1, 2009

5:55 PM - Apr. 16, 2009 - comments {0} - post comment

Who owns my mortgage?

This article is by Ralph R. Roberts is a consumer advocate, spokesperson for Federal Loan Modification Law Center, host of KeepMyHouse.com, and author of numerous books.

When trying to contact your lender to work out a payment plan or some other deal, knowing who owns your mortgage can be very helpful. Unfortunately finding out is not as easy as it sounds. You should be able to call the phone number on your last mortgage statement or the number in your payment coupon book and connect directly with your lender. More often than not, this merely puts you in touch with the servicer - the business that collects and processes your payments. In some cases, the servicer is prohibited from divulging the true identity of your lender. In other cases, the person you’re dealing with has no idea who your lender is.

Mortgages are often sliced and diced and repackaged into mortgage backed securities (MBS’s) that are sold and traded on Wall Street. Many investors subscribe to an automated system called MERS (Mortgage Electronic Registration System) that keeps track of who owns the mortgage and note as it changes hands among investors, as well as who services it for that investor. MERS can provide another level of anonymity to the process.

On many mortgages, the Mortgagee (the party that was granted the mortgage) is listed only as MOM (MERS as Original Mortgagee). No, that doesn’t mean you can call your mom to find out who owns your mortgage note. It means you have to try to look it up in the MERS registry. Customers trying to look up the investor on the MERS registry will not find it. MERS makes the name and contact information of the servicer available, but not the name and contact of the investor. That information is for the servicer or investor to disclose, not MERS.

To add to the confusion, the mortgage meltdown sank many banks and other lending institutions which were taken over by other banks or regulators.

So, what should you do if you’re trying to track down your lender? Take the following approach:

Call the phone number on your most recent mortgage statement or your payment coupon book. This will put you in touch with the servicer who may also be the lender who owns your mortgage or at least be able to tell you the name of your lender. (Remember, the person may not know or may not be permitted to tell you.)

If you have an FHA loan, contact FHA’s National Servicing Center to determine who owns your mortgage:

(800) CALL- FHA / (800) 225- 5342

E-mail hsg-lossmit@hud.gov

Department of Housing and Urban Development
National Servicing Center
301 NW 6th Street, Suite 200
Oklahoma City, OK 73102

You can try to contact Fannie Mae. If they own the note, they may provide the identity of the investor: 1-800-7FANNIE (1-800-732-6643).

If the mortgage is listed as MOM or has a MIN (Mortgage Identification Number) assigned to it, you can search the MERS database by mortgage identification number (MIN), your name and social security number, or the property’s address. Dial the toll-free MERS Servicer Identification System at 888-679-6377 (an automated touch-tone system) or search online at MERS Servicer ID.

If you know the name of the bank or other lending institution that owns your mortgage but have no contact information for them, check out the HOPE NOW Mortgage Lender’s Directory.

One of the most important steps to saving your home from foreclosure is to get in touch with your lender immediately. Better yet, hire a qualified attorney with experience in foreclosures and loan modifications to contact your lender on your behalf, so you have legal representation on your side. I can guarantee that your lender has an attorney reviewing the paperwork. You should have one to watch your back, too.

5:50 PM - Apr. 14, 2009 - comments {0} - post comment

Want to retire on a cruise ship?

Waterfront Lifestyles International, a boutique maritime lodging company, is currently taking reservations for retirement condos on a mid-size cruise ship that will make monthly cruises to the Bahamas.

For less money than many senior independent-living facilities charge, retirees may now live on a cruise ship. Prices for individual condo cabins on the 300-foot Alegria range from $159,000 for a single room to a larger suite for $399,000 plus a nominal “Resident’s Care” monthly fee which covers all the operating expenses of the ship including crew, staff, fuel, maintenance, insurance, three meals daily, port fees, the medical center, and housekeeping. A huge difference between a senior care facility and living on Alegria is that the residents actually own the ship.

With the depressed economy the company realizes some seniors may have to put off retiring for a few more years. The company has a program where purchasers may buy their unit right now and rent it until they retire, thus eliminating both the purchase payment and the monthly Resident’s Care fee until they actually move aboard.

Alegria will make weekend cruises each month to regional attractions such as shuttle launches, shopping excursions to Palm Beach, and trips to the Bahamas, and once a year it will take a weeklong trip to Central America. All cruise expenses are included in the Resident’s Care fee. Residents will only pay for cocktails, casino charges, spa fees, and purchases in the gift shop.

The vessel has most of the same amenities of the larger ships including a spa, workout room, gift shop, cigar bar, night club, dining room, beauty shop, library, and a residents’ storage area. The ship has twelve inside cabins that will be used as guest rooms. Owners’ friends and relatives can use them at no charge, including meals. Condo ownership includes permanent free membership at a nearby country club for golf and tennis. All staterooms are outside units with picture windows.

The ship will be home-ported in Port Canaveral and operated, managed, and maintained by Marine Growth Ventures, a highly respected ship management company. The port, which is also home to Carnival, Disney, and Royal Caribbean cruise ships, is conveniently located within less than an hour’s drive of Orlando and right next to the Kennedy Space Center where residents can go up on deck and watch Space Shuttle launches.

The concept of cruise ship condominium ownership is not new; however, in most cases the existing condo ships offered units for well over a million dollars and remained unaffordable for most people. Alegria will be the first ship to actually allow purchasers to own a roomy stateroom on a mid-size ship for under a half-million dollars.

The developers see mass appeal for the idea from retirees looking for a viable retirement residence as opposed to living in a beachfront condo or retirement community where the scenery never changes. The thought of living aboard a cruise ship has a certain glamour that appeals to a growing number of seniors who want to be on or near water but won’t pay the exorbitant prices now demanded for a view. Since each condo owner has an equity share in Alegria they each have a voice in the day-to-day operation and management of the ship.

Waterfront Lifestyles International is a Florida limited liability company formed specifically for the creation of retirement condo cruise ships. While the ship in Port Canaveral is the company’s first vessel, it expects to locate additional retirement ships in Tampa, Jacksonville, Palm Beach, and Sarasota.

7:02 PM - Apr. 12, 2009 - comments {0} - post comment

Colorado's economic stimulus benefits

Colorado is preparing to spend their $2.85 billion share of the $800 billion American Recovery and Reinvestment Act on everything from road repairs to food stamps. This sum includes $752 million to help Colorado pay the bills and cover the state budget deficit without laying off teachers or reducing Medicaid benefits. Construction focusing on highway and bridge repairs gets $404 million. $100 million will go toward making more homes energy efficient. Millions more is coming for job training and to extend unemployment benefits.

• Workers who are raising one child* in their home and have family income of less than $33,995 (or $36,995 for married workers) in 2008 can get an EITC of up to $2,917.
• Workers who are raising more than one child in their home and have family income of less than $38,646 (or $41,646 for married workers) in 2008 can get an EITC of up to $4,824.
• Workers who are not raising children in their home, and are between ages 25 and 64 on Dec. 21, 2008, and have income below $12,880 (or $15,880 for married workers) can get an EITC of up to $438.

6:51 PM - Apr. 10, 2009 - comments {0} - post comment

Reverse mortgage limits raised

This article is by the Golden Gateway

The Economic Stimulus Bill signed recently by President Obama expands the opportunity to benefit from a reverse mortgage to even more American seniors. The new bill will raise the HECM loan limits to 150% of the Freddie Mac loan limit. Currently, that would create a HECM loan limit of $625,500, helping older Americans access even more of the equity available in their homes to augment retirement incomes or offset investment losses.

“The past six months have been very important ones for the reverse mortgage industry and seniors in particular,” said Bart Johnson, a reverse mortgage pioneer and current co-chair of the National Reverse Mortgage Lenders Association. “During that time, the federal government has raised lending limits twice and reduced and capped origination fees.”

Online financial resource Golden Gateway Financial shared the average home values of individuals using its online reverse mortgage calculator to research reverse mortgages in the fourth quarter of 2008. This data demonstrates which areas could benefit the most from this new lending limit. According to Golden Gateway Financial, seniors in five states have a self-reported average home value between the most recent HECM loan limit of $417,000 and the new limit of $625,500. Those states include California, Massachusetts, New York, Washington and South Carolina.

Unfortunately, the data also reveals that many states with large populations of seniors have experienced significant self-reported drops in home values over the past year. This means that many seniors who previously stood to benefit from these new limits, no longer can realize the full potential of their home’s equity. For example, seniors in Oregon, a relatively stable real estate market, reported a decrease of nearly five percent over the course of 2008 to finish at $410,765 for the fourth quarter - just under the previous loan limit of $417,000.

“It is encouraging that the government is moving quickly to provide seniors with even greater access to the equity that exists in their homes,” continued Bachman. “But this data shows that falling home values are quickly outrunning new lending limits.”

State Q4 Average Home Value*

New York - $550,065
Massachusetts - $535,620
California - $506,850
Washington - $482,518
South Carolina - $418,533
Colorado - $416,803 **
Oregon - $410,765 **
New Mexico - $366,348 **
Florida - $377,879

* Self-reported home values by seniors, 62+ in Golden Gateway Financial’s reverse mortgage cash calculator for Q4 ‘08
** Indicates states that were previously above prior lending limit of $417,000 during 2008 but declined in Q4 ‘08

6:31 PM - Apr. 8, 2009 - comments {0} - post comment

First time homebuyer tax credit FAQ's

How could this effect my mortgage payment?

Assuming you are eligible for the full $8,000 refund it would be like reducing your monthly payment by $667 dollars a month!

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6:27 PM - Apr. 6, 2009 - comments {0} - post comment

How humid is your house?

This article is by Chris Kaucnikwho  is marketing director for Home Warranty of America, Inc.

Winter generally brings very low humidity to our homes and the extreme dryness can cause health and other problems. Here, we discuss some ideas on how to combat both low and high humidity in your home.

We feel the most comfortable when our home’s humidity level is between 35-50%. Keeping your home at the correct humidity level will also save you energy and reduce maintenance. Too little humidity and you can have chapped skin and lips, scratchy throats and noses, static and even problems with electronic equipment and damage to furniture.

When humidity is too high in your home, it can cause condensation, stains, mold, and more on windows, ceilings and walls. It can even trigger allergic reactions, contribute to ongoing allergies, and dust mite proliferation.

How do you know what your home’s humidity level is? Most hardware stores have hygrometers you can purchase to measure humidity. They generally run from $10-$50. Remember, moisture is created in your home in many uncontrolled ways from showering, drying clothes, cooking, and washing dishes to perspiration and breathing. So it is important to be able to monitor and control the humidity level in your home.

To control the humidity level, you can have a whole house humidifier and/or dehumidifier installed directly to your heating and cooling system, or you can purchase individual units for rooms or areas in your home.

Don’t forget these units need to be cleaned and maintained as directed. Be sure to check operational temperatures before purchasing a dehumidifier. Some are designed to operate at temperatures above 75° F, and some will operate at temperatures down to 45° F.

6:14 PM - Apr. 4, 2009 - comments {0} - post comment

Getting fit on a budget

This article is by The Debt Diva

More than 80 million Americans go on diets each year, taking a pledge to lose weight, but getting in gear and joining a gym can add up during these tough economic times. But you don’t have to break your healthy resolution because it’s breaking your bank. The Debt Diva, Clarky Davis, offers some great ways to stay in shape on budget in the new Debt Diva Frugal Fitness Guide. 

The Frugal Fitness Guide outlines ways consumers can save money in all areas of their fitness routine. Ordinary items in the home can become workout tools, turning a living room into a gym.

“You’d be surprised at how differently you can look at your couch, a dinner table and even a wall,” says Davis on turning your home to your very own gym. “Everyday items around the home can used as props to hold your feet, keep you balanced and most importantly, help you get in shape you fulfill your resolution to get fit and fabulous, frugally.”

Consumers can also learn smart ways to buy the right foods to stay healthy without spending a fortune. The Debt Diva’s Guide points consumers to community resources they can use on a regular basis to help them save money and stay on track. Davis also suggests ways to lock in a routine alone or with a workout buddy.

Davis offers some great alternative ways to get fit. Stay on top of your fitness goal in 2009 with these tips from The Debt Diva:

1. The best thing you can do for yourself is just to get up and start moving! Take a few minutes each day to stretch out before you start any exercise is a great way to start any workout whether it’s cardio or strength training.

2. The American Heart Association says that a simple 20 to 30 minute walk three times a week will make you feel more energetic, happier and calmer. You mostly want to increase your heart rate when you’re working out, because the more it increases, the more calories you burn. And the more you burn, the more fat you’ll lose.

3. If you have a limited amount of time and are jumping into a workout routine for the first time, start with squats, lunges, pushups and crunches. And best of all, these are all things you can do in your home using ordinary items in your home for support - like the floor, a wall, your couch or even a dining room chair.

4. A set of weights is as close as your pantry. A regular can of soup weighs just about 2 pounds, which is fine to start with if you haven’t done much exercise. If you’ve tried a can of soup, use water bottles for more mass, which can weight about 3 to 4 pounds.

5. After you drink the water, dry out the bottle and fill it with rice to increase the weight.

6. When you’ve started to build your routine, try using plastic milk jugs filled with water (or just halfway) to increase the weights you are lifting. Just remember to tape the lids on securely or do these exercises on a linoleum or tile floor in case you have a spill.

7. Walking and jogging are great cardio exercises you can do around the house.

8. Cleaning your house also burns the calories just like walking and jogging. An hour of cleaning will burn about 200 calories!

9. Work out with a friend. You’ll help each other stay motivated and you’ll most likely stick to a routine because you know someone else is counting on you.

10. Turn your workout into time for the family by incorporating activities for everyone. It can be as simple as a game of tennis or a visit to the playground.

“Getting fit on a budget can be fun and rewarding for your wallet and your health,” says Davis. “Don’t forget to set short term and long term goals for your workout. Your short term goal should be achievable within a month, while your long term goals can be achieved over an extended period of time. Reward your short term goals with a new work out challenge so you’re not spending what you’ve saved. Then take the money you save and reward yourself in a big way, with a new outfit for example, when you achieve your long term goal.”

6:09 PM - Apr. 2, 2009 - comments {0} - post comment

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