Archives

February 2009

Consider winterizing your home

Citing unseasonably cold weather in many parts of California and drawing upon the experience of having provided service to hundreds of thousands of homes, member firms of the Home Warranty Association of California (HWAC) are alerting homeowners to the energy and cost saving benefits of “winterizing” their residences.

While noting that winterizing initiatives may vary from region to region, HWAC officials also emphasize the special attention required by first-time homeowners.

“Understandably, new homeowners may be unfamiliar with the operating systems of their new homes until they have lived there awhile, just as one may be unfamiliar with the features of a new car. As people live in a house, preparing for winter should become a routine that creates a home that provides the necessary comfort without expending extra energy or money,” said Billy Jensen, president of HWAC.

Heading the list of winterizing tips, HWAC suggests that homeowners be certain that their furnace filters are clean. A dirty filter can interfere with the free flow of air, leading to higher fuel costs, overheating and eventual shutdown. HWAC emphasizes that filters are an investment bargain.

Other key winterizing tips offered by HWAC include:

- Make sure registers for central heating are open in all appropriate rooms. The home warranty association also recommends making sure that registers are not blocked by drapes, curtains or furniture to ensure proper heat and air flow to the entire room.
- Set thermostat to the lowest comfortable setting. For each degree the thermostat is lowered and depending on the climate, a homeowner can save up to 5% on heating bills.
- Install a programmable thermostat to regulate the temperature at night and when you are away from home.
- Insulate water pipes to prevent potential freezing that could result in cutting off the water supply to the home. HWAC suggests purchasing pipe insulation made for this purpose, or even wrapping pipes with an ordinary cloth. An additional advantage is that hot water will flow to the faucet faster, so there also is some savings on water.
- Replace deteriorating weather stripping. Over the years weather stripping loses its capacity to block air, and can be deceptive because it’s still in place. New energy conservation technologies have improved options for weather stripping. Check your local home improvement store for the latest products.
- Water Heater Settings. Set your water heater at low to medium. 120 degrees is recommended for most common uses. Many unsuspecting homeowners never check the setting, which may result in higher energy costs with little resulting benefit.

“Winterizing your home can provide substantial cost and energy saving benefits, particularly during a challenging economy. With energy costs continuing to increase, it makes sense to take a few moments to evaluate the simple measures that can make a big difference in both the comfort of your home and your pocketbook,” Jensen said.

1:14 PM - Feb. 27, 2009 - comments {0} - post comment

Reverse mortgages can be an option

If you’re over 62 and a homeowner you have a unique opportunity to get significant, spendable value from your home, even if you still hold an existing mortgage. Recently, LendingTree launched a reverse mortgage service for interested senior homeowners looking to talk with lenders who can help them consider using the equity they have built in their home.

Senior homeowners have spent years, often decades, building up equity in their homes. An increasingly common practice of homeowners over the age of 62 is to obtain a reverse mortgage (also known as a HECM, a home equity conversion mortgage) which gives qualified senior homeowners a proven solution to help fund their retirement needs. In addition, and importantly to most independent seniors, a reverse mortgage allows them to live in their home as long as they wish.

Reverse mortgages may be a good option to consider for some, but before moving forward, it’s important to fully understand how they work. The following helpful advice comes from the LendingTree Smart Borrower Center:

1. Reverse mortgage candidates must be at least 62 years of age, have significant equity in their property, and be looking for a reverse mortgage on their primary residence only.

2. Anyone who intends to apply for a reverse mortgage is required by law to complete a 45-minute counseling session with a HUD (Housing and Urban Development) approved counselor*.

3. The sum from a reverse mortgage can be paid to you in a couple of different ways; all at once in a single lump sum of cash; as a regular monthly loan advance or as a credit line that lets you decide how much cash to use and when to use it; or you may have the option to choose a combination of any of these payment plans.

4. The amount of cash you can get from your home’s equity is determined by a number of factors including your age, your home’s value and location, and current interest rates.

5. Reverse mortgages may have tax consequences, could affect eligibility for assistance under Federal and State programs, and may have an impact on the estate and heirs of the homeowner.

1:03 PM - Feb. 25, 2009 - comments {0} - post comment

Healthy recipes = healthy food

We all have our favorite recipes, but many of these are loaded with fats and contain little nutrition. Use these tips to adjust your recipes to make them healthier:

12:59 PM - Feb. 23, 2009 - comments {1} - post comment

Foreclosure moratorium means more short sales

This article is by Tom Gordon is Executive Vice President of Business Solutions for DepotPoint, Inc., which brings greater efficiencies and cost savings to mortgage lenders, loan servicers, foreclosure attorneys and REO asset management firms

The national foreclosure moratorium imposed by Fannie Mae and Freddie Mac, major banks such as Citibank and Bank of America, and a host of state governments has created a “breather” for homeowners in default. By working with loan servicers, some homeowners will be able to modify their loan terms and stay in their homes. But many won’t.

Not all borrowers will qualify for modified loans. Lenders are keenly aware of this, as well as the fact that foreclosing on a home is an expensive proposition: It can cost a bank $30,000 to $50,000 to foreclose on a home, plus carrying costs that equate to 1.0% to 1.25% of the value of each home per month. There is little enthusiasm for increasing bank-owned (REO) inventory in markets already saturated with foreclosed homes and falling prices.

As an alternative, lenders have new enthusiasm to ramp up the volume of short sales.

Short sales, as most know, are when the lender allows a distressed property to be sold at a price lower than the homeowner’s mortgage indebtedness, with the difference forgiven. This relieves the homeowner of their ownership and debt burden without marring their credit report the way a foreclosure would. It also typically allows the new purchaser to buy into the neighborhood at a substantial discount … much more in line with the property’s true, current market value. In other words, short sales facilitate efficient clearing of the market.

Historically, short sales have not been very appealing to lenders. The short sale is a complex process that requires an agreement by all the lien holders to accept the lesser amount owed by the original borrower. The paperwork and number of players involved in short-sale transactions can easily overburden a servicer who is already dealing with hundreds of thousands of loan modifications, REO dispositions, etc.

But now with over four million new loans in default in this cycle and six million more expected in early 2009 due to coming interest-rate resets, lenders such as Citibank, Bank of America and Wells Fargo are fired up for short sales.

As they see it, if just 25% of current loans in default could be sold through short sales it would stave off one million foreclosures (good for homeowners) and replace one million nonperforming borrowers with one million performing borrowers (good for lenders).

The industry’s challenge to accomplish this is two-fold: Evaluating their portfolios to determine which homes are well suited for short sales, and processing the high volume of bulk sales.

So lenders are now assessing a distressed borrower’s situation early in the loan modification process, calculating the sensibility of modifying the loan versus offering the property in a short sale or letting it likely roll into foreclosure. In cases where short sales are the best route, lenders are proactively assigning loans in bulk to be put through the short-sale process. (This phenomenon is strangely new to homeowners; in the past it was incumbent on them and their agents to initiate the short-sale process, not the other way around).

12:51 PM - Feb. 21, 2009 - comments {4} - post comment

Moving with pets

With people moving worldwide for work, Boxers are going bicoastal and cats are clearing through customs on a daily basis. Moving isn’t just stressful for people, it’s equally stressful for pets. So when it comes to moving pets, pre-planning is very important as animals can be very sensitive to changes in their surroundings. So we went to the expert Rachel Farris, Relocation Specialist at PetRelocation.com. Farris offered three top things to keep in mind as a pet owner moving with pets.

1. Make Friends with the Travel Crate-Whether you travel by car or by air, the crate your pet travels in will be his “home” during the trip and it’s crucial that your pet feels comfortable in it ahead of time. According to Farris, “As soon as you know you’re moving, it’s a good idea to get the crate,” Farris said. “That way, you can start getting your pet used to it well in advance. This will help your pet’s stress levels on your move date.” She also pointed out that many pet stores offer crate training classes. Additionally you can try feeding your pet in the crate on a daily basis to help ease the transition.

2. Pick a Frequent Fido Flier-Why should you get extra leg room for yourself but not for your pet? Select an airline that offers first-class accommodations for pets traveling in the cabin or under the plane. “At PetRelocation.com, we only work with pet-friendly airlines that keep pets in climate controlled conditions throughout the flight,” says Farris. “This ensures that every pet will arrive safely at its destination.” According to Farris, Continental and Northwest are both known for their superior pet-safe cargo programs in the US, and Jet Blue just introduced their new JetPaws program, which caters to pets traveling in-cabin.

3. Arrange a Jet-Setter Check Up With Your Vet-If you’re making a trip across state lines or international borders, you’ll need a health certificate issued the week before the flight. “Most states require pets to be current on their rabies shots,” Farris says, “and for international trips, the documentation for importing or exporting pets can be even more complex.” Planning ahead and consulting a professional pet relocation company can ensure that your trip goes smoothly.
No matter if your move is big or small it is important to do your research and make plans accordingly when moving pets. This can make all the difference, resulting in a well transitioned pet and a less stressed pet owner.

1:38 PM - Feb. 19, 2009 - comments {0} - post comment

Now may be the time to buy a second home

This article is by Curtis Seltzer who is a land consultant in Blue Grass, Virginia. He is author of How To Be a DIRT-SMART Buyer of Country Property at www.curtis-seltzer.com where his columns and articles are posted. He also contributes to www.landthink.com.

Second homes in America have become as American as apple pie. A beach house, small farm, spot on a lake, condo in a recreation destination-some nine million of us own such places.

A National Association of Realtors’ (NAR) survey indicated that about 740,000, or about 12%, of all existing- and new-home sales in 2007 were vacation homes. That was down about 31% from 2006 sales of 1.067 million vacation properties. The Realtors’ 2008 survey will be available in early April at www.realtors.org.

Despite a 31% decline in sales, the 2007 NAR data also showed that the median sales price of vacation homes from 2006 to 2007 dropped only 2.5%, to $195,000. In the first part of this Recession, vacation homes held their market value even though sales fell by almost one-third in one year.

Almost half of the vacation homes NAR surveyed were in small towns (17%) and rural areas (30%).

Anecdotal evidence suggests that vacation-home sales continued to fall at a faster rate in 2008 than their prices.

Vacation-home prices have also held up better than metropolitan housing, which dropped 20% in the 20 largest metropolitan areas tracked by the S&P/Case-Shiller composite house price index in the 18 months following a mid-2006 high.

In addition to second homes, rural areas are a market for owner-occupied housing. Resident homeowners are both born-heres and come-heres, such as retirement relocators.

Prices for rural, owner-occupied houses have risen slightly more than 2% since early 2007, according to data gathered by the Office for Federal Housing Enterprise Oversight (OFHEO) and cited in a recent report from the Federal Reserve Bank of Kansas City. Non-metro (rural) housing prices ran counter to price declines in metro areas.

Why have second homes and owner-occupied rural housing proved more price-stable than metro housing during the last two years? Several reasons come to mind.

First, as the Kansas City Fed points out, lending practices in rural areas did not follow the now-troubled, bail-out banks into no-doc loans, 100% financing, foreclosure-guaranteeing ARMs, subprime predatory lending and the rest of it. Second, rural economies that depended on agriculture and energy have so far been hit less hard than urban manufacturing centers and once go-go residential markets like Phoenix and Orlando. Third, rural housing prices were not artificially inflated by speculators or panic-driven buyers who feared that they had to buy before they were left behind.

But the last quarter of 2008 and 2009’s first six months will probably show price weakening in vacation homes and rural owner-occupied housing. Inventory of unsold property has piled up, and all-collar unemployment is squeezing everyone’s ability to carry a mortgage. The market will force prices lower to find buyers as this Recession roosts on our heads like a catatonic hen.

In circumstances like these, as ugly as it sounds, buyers of second homes and other rural property will nose around for opportunities amid the distress. Where might value be found?

Search in second- and third-tier recreation areas. If you’re cost conscious, you might want to avoid high-priced recreation destinations and steroidal resorts. The best buys may still not have shaken out in the most popular second-home communities such as Asheville, North Carolina, Park City, Utah, Ashland Oregon and Myrtle Beach, South Carolina-all of which were top-ten, second-home destinations in recent years.

The best buys will be in nice places that have yet to be turned into trendy destinations. Look for small towns that are still about one-third pickup trucks and have no yak-butter crepe place.

Look for the hot spots of pain. Some second-home communities that saw the highest price appreciation rates since 2002 are likely to be corrected the hardest. Not every over-priced property will be knocked down, but a few will. Look for the newly fallen apple, not the one that’s lashed on the topmost branch with steel cable.

A lot of nice country surrounds the Rust Belt-along the northern tier of states from the East Coast into the Midwest. The automotive and metal industries that built this belt are downsizing, if not disappearing. Second homes and recreation properties that their wage and salary employees bought in the good times are coming on the market.

Think two-steps: land first, housing later. Bargain hunters with limited cash should focus on unimproved land. Make-shift housing can be arranged until money to build becomes available. Used campers are a relatively cheap first housing choice on recreation tracts. Modular housing provides good value, fast construction and many custom options.

Think smaller. Families can adapt to a smaller second-home footprint using temporary housing when needed. An extra $100,000 might buy you more bedrooms that you use twice a year, for three days each time. A budget-conscious buyer would be far ahead to pack guest kids in a four-bunk camper for $3,500 and make reservations for their parents at the closest B&B.

Smaller second homes will also be cheaper to maintain and more energy efficient in any small-apple to big-apple comparison.

Think lower offer. I take no pleasure in suggesting that buyers should peg their offers to values of five to seven years ago. But the unavoidable fact is that sellers would not be marketing a second home right now unless they had to sell-right now. The valuations of 18 months ago — asking prices — are too high by ten to 50%.

A nice 100-acre-plus, lake-front property in Michigan had been priced at $6,000 an acre before it dropped this week to $4,000. This seller has had to face reality. Is $300,000 the likely sales price?

Look for farms whose owners have been wrung out of agriculture as they’ve practiced it. I hate writing that sentence, because I hate seeing farmers fail. But facts in the field don’t lie. Family dairy farms from New York through the upper Midwest are being sold, because of sector economics and the fact that it’s a very hard way to make a living. These farms are usually pretty and well-tended.

Look for timberland. Prices for standing timber — called stumpage — have fallen in some places and not in others. In the Southeast, for example, prices for hardwood sawlogs used for furniture and flooring have remained steady, because second-home and recreational owners of timberland are reluctant to cut their trees, thus restricting supply and maintaining stumpage prices. In West Virginia, Pennsylvania and New York, however, stumpage prices for hardwood sawlogs have fallen, in some species by as much as 50% over the last couple of years.

Where stumpage prices have fallen, the asking price and value of timberland should be discounted. Stumpage prices will improve when housing does.

Some timberland will be priced attractively, and in other cases, a buyer will be facing a no-budge seller. Buyers should look for tracts where at least 50% of the purchase price can be covered by the sale of the mature timber. Hold for a year or two before cutting, and then catch the upswing in timber prices.

Think of your second home as an income-generating investment, not just as a personal residence. The NAR reported in 2007 that 84% of second-home buyers said they bought a second home for vacations or as a family retreat; only 25% said they bought to rent to others.

Setting up a second home as a rental property generates income and brings tax benefits. Start with IRS 527, Residential Rental Property and IRS 936, Home Mortgage Interest Deduction. Several books are also available.

Before buying a second home with the intention of renting it, discuss the IRS rules with your accountant and follow that plan.

2009 is likely to be a hard year in many ways. But picky buyers may find a gem in the dross. From a seller’s perspective, priced right is half sold; from a buyer’s, bought right is half the profit.

1:21 PM - Feb. 17, 2009 - comments {0} - post comment

Seller Resolutions

The New Year is here, and many are more resolved than ever to achieve real estate goals that went by the wayside in 2008 due to economic and other concerns. But, what’s one to do to optimize their chances of success amid what’s still a tumultuous, highly demanding marketplace?

“While tricks of the trade abound to give buyers and sellers a leg up on the competition, there are also a number of basic pitfalls buyers and sellers should be sure to avoid lest they commence their real estate venture on shaky ground,” notes Robert Jenson, CEO of luxury Las Vegas real estate purveyor The Jenson Group.

With this in mind, Jenson offers these New Year’s Real Estate Resolutions to help sellers avoid common blunders and get the deal done:

Seller Resolutions:

1. I Will Not Overprice My Home. Every seller naturally wants to get the most money for his or her product. The most common mistake that causes sellers to get less than they hope for, however, is listing too high. Listings reach the greatest proportion of potential buyers shortly after they reach the market. If a property is dismissed as being overpriced early on, it can result in later price reductions, which reflect poorly on the listing. Overpriced properties tend to take an unusually long time to sell, and they end up being sold at a lower price than they likely would have had they been priced properly in the first place.

2. I Will Not Limit Showings. Are you serious about selling your home? Then you need an open door policy and to ensure the home is ready to be shown at the drop of a hat…even if you’re not around. Pack up your valuables and provide an outdoor lockbox that real estate agents may access at their discretion. Most showings are fairly spur of the moment, and you don’t want to miss out on any qualified prospect.

3. I Will Properly Stage My Home. When attempting to sell your home to prospective buyers, do not forget to make your home look as pleasant and fresh as possible. Plant flowers, wash the windows and screens, put on a coat of new paint, lay new carpet, add furnishings and décor items, eliminate clutter and remove personal photographs from around the house. It’s time to show off your beautiful home and make someone else feel completely at home in it. First impressions are critical, so ensure the junk is packed in boxes, and all boxes are put in storage vs. the garage so the prospective buyer can properly evaluate and appreciate that part of the house, too. Clean out the closets, so they look bigger.

4. I Will Not Wait for an Offer Before Making Needed Repairs. Would you buy a Ferrari with bent rims, stained rugs and cigarette burns in the seats, even if the seller was offering a “repair credit”? Doubtful, as the buyer would have an understandable poor impression of how the vehicle was treated and assume the worst. When selling a home, eliminate any need for such credits in advance. Even before you list it for sale, hire professionals to inspect the roof, pool, and other structural elements, and for termites and other important buyer considerations. Make ALL repairs before you list the house on the market to thwart anticipated objections in advance.

5. I Will Be Aware of All Contract Terms. It is extremely detrimental to be ill-informed regarding the details of your real estate contract. Real estate contracts are legally binding documents, and they can often be complex and confusing. Not being aware of the terms in your contract could cost you thousands for repairs and inspections. Know what you are responsible for before signing any contract. Can the property be sold “as is”? How will deed restrictions and local zoning laws affect your transaction? Your real estate professional should ensure you know the answers to these kinds of questions, which can save you a considerable amount of money.

1:48 PM - Feb. 15, 2009 - comments {0} - post comment

Buyer Resolutions

The New Year is here, and many are more resolved than ever to achieve real estate goals that went by the wayside in 2008 due to economic and other concerns. But, what’s one to do to optimize their chances of success amid what’s still a tumultuous, highly demanding marketplace?

“While tricks of the trade abound to give buyers and sellers a leg up on the competition, there are also a number of basic pitfalls buyers and sellers should be sure to avoid lest they commence their real estate venture on shaky ground,” notes Robert Jenson, CEO of luxury Las Vegas real estate purveyor The Jenson Group.

With this in mind, Jenson offers these New Year’s Real Estate Resolutions to help buyers avoid common blunders and get the deal done:

Buyer Resolutions:

1. I Will Get Loan Pre-Approval: Many buyers want to find the “perfect” home before having their credit pulled, which can backfire when an offer is on the table and time is of the essence. It’s wise to get pre-approved for a loan even before you view your first home. Your credit report may contain inaccurate information that you were not aware of, which can be a time consuming process to rectify. Or, you might not like what loan program you qualify for, or you might qualify for a higher loan value than you thought. Ultimately, you will need a pre-approval letter with your offer, so do yourself a favor and do this in advance. It’s free, after all.

2. I Will Have Clear Goals. Create a realistic idea of the property you’d like to buy. What features are most important to you? Make two lists: one of the items you can’t live without and one of the features you would enjoy. Refine the lists as the house hunt progresses, but remember that no place is going to be 100% perfect. It is going to be up to you to put the finishing touches on and call it home.

3. I Will Not Forego Home Inspections. After your offer is accepted, set up a home inspection. It’s not uncommon to find problems, including leaky roofs, cracked walls, insect infestations and foundation problems. Hire a reputable inspector, and negotiate to get you the most for your money once the inspector’s report is final. If you negotiate repairs as part of the purchase, ask for a “walk through” before finalizing the paperwork to assure all issues are resolved to your satisfaction. Also inquire about home protection plans as part of the purchase, which may save you money in the short and long-term future.

4. I Will Diligently Shop Mortgages. A difference of even half a percentage point can mean a considerable savings over the life of a loan. For example, the difference in the monthly payment on a $100,000 mortgage at 8% vs. 7.5% is about $35 per month. Over 30 years, that’s $12,600. Be a smart consumer and comparison shop for the most favorable mortgage rates and terms.

5. I Will Use a Buyer’s Agent. Purchasing a home could be the most important and complex financial transaction you engage in, and going it alone is risky. Indeed, a buyer’s agent can save you time, hassle and thousands of dollars. Take time and care when selecting a real estate buyer’s agent - find someone you can trust, and that you have a good rapport with.

Seller Resolutions:

1:45 PM - Feb. 13, 2009 - comments {0} - post comment

Thinking of relocating?

This article by relocation.com shows where people are relocating.  Maybe you want to join them.

With job losses and the housing crisis continuing to weigh heavily in the news as the New Year unfurls, many people are making decisive changes in their lives, including moving. Relocation.com, a leading online consumer resource for moving services, reveals new information on where people are seeking to move to and out of throughout the U.S.

Despite the housing market struggles and a downturn in gaming revenues, Las Vegas still beckons to people looking for a fresh start, according to an analysis of moving requests from 2008 by Relocation.com. The data revealed that on a per-capita basis for cities with more than 1 million people, Las Vegas retained its top spot as the No. 1 destination for people looking to make a long distance state-to-state move.

Although the recession has spared no one area of the country, cities in the West and South continue to appeal to people relocating, whether it is moving to take a new job or finding a new home with more solid economic opportunities. Las Vegas was followed in popularity by: Denver, Charlotte, N.C., Phoenix/Mesa, Portland, Ore., Seattle, Orlando, Fla., Washington, D.C., Atlanta and Tampa Bay/St. Petersburg, Fla. The results are largely consistent with 2007.

“Relocation.com has a unique perspective on consumer moving patterns. We connect them with service providers, but also track interest and trends, ranging from family and home size, to locations where people are moving,” said Sharon (Ron) Asher, chairman and founder, Relocation.com.

The company’s 2009 moving forecast is showing some positive signs for the South, yet some Midwest states show continued signs of decline likely due to economic struggle.

Based on requests for moving quotes in 2008 and leading into 2009, the data is a strong indicator of consumer behavior for the coming year. Michigan and Ohio are declining likely due to automotive industry and other manufacturing job losses. However, North and South Carolina have gained and are expected to keep gaining.

For every 100 people looking to move to Michigan, 210 were looking to move out of the state. Ohioans also saw more people relocating: for every 100 people looking to move to Ohio, 150 requested moving quotes to move out of state.

The biggest beneficiary of these population displacements is North Carolina, which saw nearly 80% more requests to move to North Carolina than to leave (for every 100 people requesting moving quotes to leave the state, 180 indicated they wanted to move to it). South Carolina also saw a jump with nearly 70% more requests to move to the state than to leave, while Texas saw 66% more, and Georgia saw 36% more.

In general, the Northeast, the Great Lakes and the Midwest showed a greater propensity for moving-out requests to exceed moving-in requests, while the South, the Mountain West and the Pacific Northwest showed gains. The notable exception in the Pacific region is California, a state hard hit by the housing market. It saw more requests to move out of state than to move to the state.

Research Statistics

Relocation.com analyzed nearly 500,000 moving quote requests in 2008 to determine where people are moving. Figures from the U.S. census bureau indicate that 34 million people moved between 2007 and 2008. The company estimates that about three out of four people who make an inquiry on the Relocation.com family of sites, actually move within 12 months, representing nearly 3% of all Americans who move. The Census Bureau says the vast majority of movers in the U.S. make local moves; according to 2006 data, 62% of people making a move stayed within the same county, while 20% moved to a different county but within the same state. Fourteen percent moved state to state, while 3% moved from abroad.

1:34 PM - Feb. 11, 2009 - comments {0} - post comment

There are still many ways to finance that home purchase

 2008 was one of the toughest, most volatile years our financial systems have ever experienced – but we don't have to tell you that. In some way or another, everyone has felt the effects of this global financial crisis. So, let's skip the painful details. Let's avoid as well the impossible task of trying to predict the end of it, and let's try something different. Let's spend the first month of 2009 looking at solutions to the mortgage and real estate markets – actual viable solutions that you can use right now to help turn things around. If you're a homeowner or looking to be one in 2009, keep reading. You'll be glad that you did.

Face Your Fears
As human beings, we crave certainty, consistency, something we can really count on or believe in. It's comforting, it's consoling, and it's completely natural. But it's also extremely fragile, and always the first casualty of turmoil, especially in the financial markets.

In 2008, one could argue that the biggest market movers were not just the credit crunch or a pending global recession. It was fear, a sweeping lack of confidence that suddenly gripped everyone, from major financial companies and individual investors, to consumers and governments alike. The result was not only the unprecedented financial turmoil that we're not going to discuss in this article, but also an amazing opportunity for those who aren't afraid to face that fear as the real estate and mortgage markets begin to turn – and they will turn. Perhaps they already have.

For instance, mortgage rates are currently the lowest they've been in a generation, and home prices have dropped significantly in many areas. For new buyers and homeowners looking to save on monthly payments, this is great news. Homes you might not have been able to afford just 2 or 3 years ago are now well within your reach at a rate that makes much more sense than renting, in many instances. What's more, the Federal Reserve, the Treasury Department, and even the Federal Deposit Insurance Corporation (FDIC) are using all of their tools to address the ailing economy, which many experts believe could lead to even lower rates in the near future.

For homeowners with enough equity, this means now may be the time to lock in a low rate. At the time of the writing of this article, the Mortgage Bankers Association reported that mortgage applications jumped 2.9 percent in one week in December, 77% of which were refinances with an average interest rate of 5.18% for a 30-year fixed and an average rate of 4.93% for a 15-year fixed mortgage.

If the experts are wrong and rates increase, you made a great deal. If the experts are right and rates continue to drop, just ask your mortgage professional about a "no closing cost loan". This type of loan allows borrowers to lock in today's low rate and to refinance again if the rates fall further. Just make sure there's no prepayment penalty if you're not going to stay in the home long enough to recoup your investment.

The Waiting Game
Trying to time the bottom of any market is like trying to catch a falling knife with your bare hands. You're going to lose every time. Instead, consider how long you're going to be in the home before making any home financing decision. If the home you're looking to purchase is below market value with rates are near historical lows and you're planning to stay in your home for more than five years, you owe it to yourself to at least consider your options before it's too late.

While it may not be the right time to try and flip a home for a quick profit, if you're planning on a longer-term investment, it makes a lot of sense to take advantage of this rare combination of discounted prices and lower rates – especially for first-time home buyers.

Did you know that a $7,500 tax credit is now available to first-time home buyers? This special tax incentive was created as part of the Housing and Economic Recovery Act of 2008 to help stimulate the housing market, and yet very few people seem to know about it. This program provides qualified first-time home buyers (anyone who hasn't owned a home in the last 3 years) a tax credit of up to $7,500 on either the 2008 or 2009 return. Add this to the list, and waiting any longer to jump in on today's buyers' market just doesn't make a lot of sense.

There are, of course, income limits and other qualifying factors involved in this special tax incentive, but call the mortgage professional who supplied you with this issue of YOU Magazine and run the numbers. See what makes sense for your individual goals and needs.

Sure, home prices could drop even further, but they could just as easily begin to increase again in the next few months – no one knows for sure. But for those looking to refinance, playing the waiting game could prevent you from moving forward if home prices do continue to show weakness and your home fails to appraise. More importantly, you need to review your credit now, and make sure there are no issues that will force you to miss out on a great deal.

With increasing default rates for mortgage and other consumer debt, great credit management is rewarded with the lowest rates available and higher rates can be expected for others. Take a look at your credit report. Experts state that errors can be found in over 80% of all credit reports which can impact your FICO scores. In many cases, the information can be easily corrected but the time to discover an error is not within 30 days of an expected closing. Be prepared, act early, and seek advice and direction where warranted.

It's important to note that mortgage rates are based on the performance of mortgage-backed securities (MBS) and rates can change several times throughout the course of a single day. In fact, MBSs have been so volatile recently that movements in the markets that used to take weeks or months now take only days or even hours to make.

The best path to follow is to complete a loan application with an experienced mortgage professional you trust, someone who has experience and access to up-to-the-minute MBS data. Agree on a target rate beforehand and authorize him or her to lock it in when he or she deems appropriate. If rates reach that level or appear to be going higher, he or she can lock it for you without having to track you down first to get your permission.

Remember, buying a home is the largest, most important investment most Americans will ever make. But it is also unlike any other investment available today. After all, you can't live in a mutual fund, and you can't raise your children in a money market account. Buying a home is still the best long-term investment you can make today – the turmoil of 2008 doesn't change that fact. And by buying or refinancing now you could be getting in near the very bottom of the market.

Winning Strategies
The two biggest challenges of buying a new home in today's market are the same as they've always been: qualifying for the mortgage and coming up with the down payment.

Well, that's not exactly true. From about 2000 to 2007, increasing home prices made financing a home very easy for just about anyone. Even for borrowers with a low credit score, mortgages were available with no down payment, and some programs didn't require any documentation at all.

Those days are gone. The exotic mortgage products that fueled the last real estate boom no longer exist, for the most part. Also missing from the mix are "sub-prime" loans. Until stability is seen in the housing markets, don't expect these to return.

Today's mortgage market looks more like it did ten years ago, before the rise and fall of exotic mortgages and the sub-prime collapse. That means you will have to have a good credit score, be able to fully document your income, and, with the exception of some government loan programs, you will likely need to put some money down.

The good news is that there are options available to help you overcome these challenges and take advantage of today's buyers' market. Yes, credit standards have tightened a bit, but with a solid credit score, home financing is absolutely available and affordable to everyone. Documentation will definitely be required, and expect that you will have to provide your last two years' tax returns, W-2s, paystubs for the most recent 30 days, and three months bank statements.

The following are highlights of a few mortgage programs that will help you succeed in today's market. Print out this material and review it with your trusted mortgage professional for full details on each program.

FHA Mortgages
Mortgages from the Federal Housing Administration (FHA) have increased dramatically over the last two or three years – and there's a good reason. FHA loans are fully backed by the government and offer consumers who qualify the best of both worlds: low interest rates and low down payment requirements.

FHA Benefits:

• Increased loan limits throughout the country
• As little as 3.5% down payment requirement
• Not typically credit-score driven
• Sellers may finance up to 6% of buyer's costs to close
• Allows many down-payment assistance programs, including gifts
• $7,500 tax credit is available for FHA loans for qualifying buyers

FHA Streamline Refinances
FHA has provided streamline refinances on insured mortgages for almost 30 years. The "streamline" refers only to the amount of documentation and underwriting that needs to be performed by the lender. If you have a qualifying FHA loan, a streamline refinance can help you lower your rate and requires:

• No income verification
• No bank account verification
• No minimum credit score
• No appraisal in most cases

FHA 203(k) Mortgages
Even if the home you have your eye on is a fixer-upper, the Federal Housing Administration's 203(k) loan program can help home buyers and homeowners afford to pay for and repair single family properties with a single loan (from $5,000 to $30,000).

Normally, when you want to purchase a fixer-upper, you first have to secure financing to buy the home, then secure additional financing to repair the home. These short-term loans can be expensive and difficult to obtain. With an FHA 203(k) loan, the borrower can get just one mortgage loan to finance both the acquisition and the rehabilitation of the property, making this program ideal for purchasing foreclosed properties at major discounts.

These loans are a bit more complex, especially for first-time buyers and refinancers (there's also a "streamline" version of this program), but it's definitely a viable option if you're looking to make homeownership even more affordable in 2009.

USDA Mortgages
Yes, the US Department of Agriculture is the same governmental agency that certifies the quality of the beef you buy. But it also has a mortgage program that supplies $16 billion in funding to Americans in what they call "rural" areas.

But don't be fooled by the "rural" part. You don't have to live on a farm or in the country to utilize this amazingly affordable program. In fact, there are a surprising number of qualifying areas in both large and small states and cities, so this is definitely an option that's worth investigating if you're looking to buy a home – and here's why:

• No down payment is required
• No monthly mortgage insurance
• Seller can pay 100% of the buyer's reasonable closing costs and prepaid expenses
• No reserves are required

 VA Mortgages
If you or your spouse is a veteran, you might be eligible for a special mortgage from the Department of Veteran Affairs. In recognition of your valuable service and sacrifice to your country, the VA program is designed to help make housing opportunities affordable for eligible veterans, so take advantage of this program – you've earned it. VA mortgage benefits include:

• No down payment
• No monthly mortgage insurance
• Seller can pay any and all "reasonable" costs to close
• Funding Fees are not required for Veterans with disabilities

4:31 PM - Feb. 9, 2009 - comments {0} - post comment

You CAN stay connected with family and friends

The holiday season has once again come and gone. And while some of us may be mourning the end of the large holiday feasts and seemingly bottomless platters of treats, many people may also feel a little melancholy about being out of touch with friends and family. After all, one of the best things about the holiday season is spending time with family or reading holiday letters about what your friends did during the past year.

The good news is, you don't have to wait an entire year to reconnect with friends and family members. That's because social networking websites like MySpace.com and Facebook.com as well as sites like Twitter.com and even blogs are ideal for establishing relationships and staying in touch with your friends and family members. The ages of people on these networks range from computer-savvy high school kids to middle-aged professionals. That means there's a good chance you can connect with a number of your friends, family members, and even acquaintances you haven't seen in years!

How to Decide Which Option Best Suits You

With so many ways to connect with people, it's hard to know which option best suits you. The key is to understand some of the basic differences...and to focus on which option(s) will allow you to communicate the way you want to communicate. To help with the decision, the following list breaks down some of the most popular options and how they can help you stay in touch.

Short updates...without the hassle. If you're just looking for a way to share short blurbs about what you're doing, you may feel like a blog or social networking site is too overwhelming or time-intensive for you. The good news is, there's an option that's perfect for you. Social messaging or micro-blogging sites like Twitter.com are designed to deliver short messages or updates. For instance, the longest message you can post on Twitter is only 140 characters long – yes, characters, not words. So there's no pressure to write a long story or upload pictures. You simply type a sentence or two and hit send. You can even send messages via a text message from your cell phone. And when you log into your site to see what friends and family members are doing, you get the same short messages in return. No worries about linking to multiple pages or reading long posts. Just concise blurbs...all posted on one convenient screen for you to read. And best of all, it's free to set up and use!

Show photos, post updates, chat online, or send emails. For a more full-featured way to stay connected, you may want to sign up for a social networking site like Facebook.com or MySpace.com. These sites are free and allow you to write regular updates like a micro-blog site, but they also enable you to post pictures as well as send emails to a special inbox on the site. You can also use the site like an Instant Messaging program, so you can see which friends or family members are online at the same time as you and chat instantly! And, most social networking sites allow you to control some aspect of privacy, so you can set parameters determining who can see your content. Of course, the numerous social networking sites aren't exactly the same. For example, some sites like MySpace offer greater customization, so you can really make your page fit your personality. In addition, you may find that most of the people you want to stay connected with are already signed up on a certain site. So talk to your friends and family members before choosing which site – or sites – you want to use.

Share longer stories and post pictures for the world to see. If you want to share more than a sentence here or there, you may want to start a blog. Blog sites such as Blogger.com and Wordpress.com allow you to set up a blog for free. With these sites, you can write longer articles and even post pictures. The software walks you through the process, so it's easy to do...even if you're new to the whole "online communication" concept. Another nice benefit of blogs is that your friends and family members don't need to be members of a site to read your updates or see your pictures. They just need to know the URL so they can type it into their browser. So, it's convenient for everyone.

Set up your own social network. You may want to have a social network set up just for a specific group. For example, you may want to have one place where all your family can come together to communicate. Or, you may want a special network set up for a work group or class reunion. Regardless of what it's for, setting up your own social network is actually easier than you think when you use sites like Ning.com. With a Ning site, you can invite only the members you want to have access to the site, so it has an added element of privacy. In addition, each member can update their own profile...and you can even include a calendar of events and a discussion forum that everyone can access. With these added benefits, your social network site can truly become the one place that your entire family comes together...just like the dining room table during the holidays, except it's online!

Getting Started

Facebook, MySpace, blogs, and other social networking sites like Ning offer somewhat different services, but they all have similar features. The nice thing is, getting started on a social networking site or blog is easy and can often be done in as little as 15 minutes. Here are some things you'll want to have handy before you begin:

Write a profile. Social networking sites are all about getting to know each other and keeping people up-to-date on what's going on in your life. If you don't have a profile, people can't get to know you. Start by writing a few lines about yourself and what you're interested in.

Pick a profile picture. People like to see who they're talking to. Select a picture that is fun but also somewhat professional. Remember, in addition to your friends and family members, you may end up communicating with co-workers or future employers. So make sure you maintain a public image that works for all situations.

Get some content ready. Start by making a list of items you can add to your page today. You'll want a variety of information: some fun interests and hobbies, along with some insightful details like where you went to school and when you graduated. If you're starting a page on a social networking site, you may even want to get a few pictures of your family or a recent vacation ready so you can share them with friends.

Gather usernames from friends. Many social networking sites have features that allow you to search for former classmates or to check your email address list. But, it's probably a good idea to gather a few usernames of friends so you can connect with them as soon as you set up your page. If you plan on starting a blog, you may want to gather the URLs of your friends' or family members' blogs as well. That way, you can add them as links on your blog for easy access by you and by your blog's visitors who may be interested.

After you get the content ready for one site, you can use that same information to register on other sites if you want. This way, you can manage multiple sites with relatively little work.

4:29 PM - Feb. 7, 2009 - comments {0} - post comment

Fun Presidential facts

 This month, everyone from your family and friends to your children's school will undoubtedly be talking about the historic inauguration of the 44th President of the United States.

But did you know that Barack Obama won't actually be the 44th president? He'll only be the 43rd person to hold the office. So why all the confusion?

It all goes back to Grover Cleveland, who was elected to two terms as president. However, because his terms were not consecutive, he was counted twice – Cleveland is listed as the 22nd and the 24th president. As a result, the number of people who held office is actually one less than the number of presidents the United States has had.

That's just one of many fun presidential facts behind the story of America's presidents. For even more oddball twists and tidbits, take the quiz below and share the answers with your family and friends this month!

Take the Presidential Tidbit Challenge...

1. Who was the first president to live in the White House?

A. George Washington
B. John Adams
C. Millard Fillmore
D. Theodore Roosevelt

ANSWER: This is a bit of a trick question. Officially, John Adams became the first president to live in the presidential residence that we know as the White House. However, when he moved into the residence during 1800, it wasn't called the White House. Instead, it was referred to as the President's Palace, the President's House, or the Executive Mansion. The first president to live in the "White House" was Theodore Roosevelt, who gave the residence its official name in 1901.

2. Who was the tallest president?

A. James Madison
B. Abraham Lincoln
C. Benjamin Harrison
D. Franklin Pierce

ANSWER: The tallest president of the United States was Abraham Lincoln, who stood 6 feet, 4 inches tall. Conversely, the shortest president was James Madison, who was only 5 feet, 4 inches tall – an entire foot shorter than Lincoln.

3. Although it seems like an odd question, who was the first president to be born as a US citizen?

A. Abraham Lincoln
B. Martin Van Buren
C. Herbert Hoover
D. Richard M. Nixon

ANSWER: Martin Van Buren was the first president to be born as a citizen of the newly created United States of America. The seven presidents prior to Van Buren (Washington, J. Adams, Jefferson, Madison, Monroe, J.Q. Adams, and Jackson) were considered British subjects. Incidentally, William Henry Harrison, who took office immediately after Van Buren was also born as a British subject. The other names listed above also represent interesting facts about birthplaces of US presidents. Abraham Lincoln was the first president born outside of the original colonies. Herbert Hoover was the first president born west of the Mississippi River. And, finally, Richard Nixon was the first and only president born in California.

4. Who was the youngest president of the United States?

A. Theodore Roosevelt
B. Franklin Delano Roosevelt
C. John F. Kennedy
D. Ronald Reagan

ANSWER: This is another tricky one. Theodore Roosevelt was actually the youngest president of the United States. He was only 42 years old when he took office; however, he became president after William McKinley died in office. John F. Kennedy was the youngest president ever "elected" to office. He was only 43 years old when he was elected president in November of 1960. So depending on how you interpret the question, either answer could be correct. On the flip side, Ronald Reagan was the oldest president. He was 69 when he took office and 77 when he left.

5. Who was the first president to appear on television?

A. Warren G. Harding
B. Rutherford B. Hayes
C. Franklin D. Roosevelt
D. John F. Kennedy

ANSWER: Franklin D. Roosevelt was the first president to appear on TV. The appearance took place during the opening ceremonies of the World's Fair in 1939. John F. Kennedy, however, was the first president to give a live television news conference. Warren G. Harding and Rutherford B. Hayes had famous firsts of their own. Harding was the first president to address the nation via radio, and Hayes was the first president to have a telephone in the White House.

6. Which president was born on July 4th?

A. John Adams
B. Thomas Jefferson
C. James Monroe
D. (John) Calvin Coolidge

ANSWER: The only president to be born on the Fourth of July was Calvin Coolidge, who was born on July 4, 1872. However, three presidents died on this national holiday. Both John Adams and Thomas Jefferson died on July 4, 1826. And James Monroe died on July 4, 1831.

7. Which president lost the popular vote, but still became president?

A. John Quincy Adams
B. Rutherford B. Hayes
C. Benjamin Harrison
D. George W. Bush

ANSWER: All of the above. John Quincy Adams was actually voted into office by the House in 1824 after the general election failed to produce a majority of the electoral votes. The other three presidents listed above also took office despite losing the popular vote: Rutherford B. Hayes in 1876; Benjamin Harrison in 1888; and most recently George W. Bush in 2000.

8. Which president graduated from the US Naval Academy in Annapolis?

A. Ulysses S. Grant
B. Woodrow Wilson
C. Dwight D. Eisenhower
D. Jimmy Carter

ANSWER: The only president to graduate from the US Naval Academy in Annapolis was Jimmy Carter, who graduated in 1946 and then served in the nuclear submarine program. Ulysses S. Grant and Dwight D. Eisenhower both graduated from West Point. Woodrow Wilson, on the other hand, was the only president who had a Ph.D. He received a doctorate in political science from Johns Hopkins University in 1886.

9. Which president served in the US Congress after leaving office?

A. Andrew Johnson
B. John Quincy Adams
C. John Tyler
D. William Howard Taft

ANSWER: Andrew Johnson and John Quincy Adams were the only two former presidents to serve in the US Congress after leaving office. Johnson served in the Senate, and Adams served in the House. John Tyler did not serve in the US Congress, but he did serve as a delegate to the provisional Congress of the Confederacy after the outbreak of the Civil War. On the other hand, William Howard Taft is the only president to serve as chief justice of the US Supreme Court. After leaving the White House, he became a professor of constitutional law at Yale and was later appointed chief justice in 1921.

10. Who is the only person to become president without being elected as either president or vice president?

A. Millard Fillmore
B. Theodore Roosevelt
C. Gerald Ford
D. Lyndon Johnson

ANSWER: The only person ever to become president of the United States without being elected as either president or vice president is Gerald Ford. He was nominated to be Richard Nixon's vice president after Spiro Agnew resigned. Later, when Nixon resigned on August 9, 1974, Ford became the 38th president.

4:26 PM - Feb. 5, 2009 - comments {0} - post comment

Get ready for tax season

It's that time again...time to start gathering all of that dreaded documentation to send to good old Uncle Sam! Recent stats say the IRS audited approximately 1 out of every 97 returns last year, so it pays to be careful. And even though this may seem like a very painful process, taking just a few simple steps right now will make your tax filing far easier and more accurate.

Keep it together. Make a quick list of all the documents or statements that were needed to complete your return last year – or call your tax planning professional for a checklist. Use this as a checklist to make sure you have a good start on the documents you may need this year. As you receive tax documents in the mail, grab your checklist, and mark the item as received. Then, keep all of the tax documents together in a large file or envelope marked "2008 TAXES."

Do the math. According to the IRS, the most common mistake on tax returns is bad math – from transposed numbers to downright incorrect data. And with one form leading to another, those errors can make a huge impact. Even if you use tax software, you're not off-the-hook – since it only adds the numbers YOU put in. Double-check entries carefully.

Every last cent. The IRS receives copies of your Form 1099 earnings each tax season. So, they know how much you make in interest and dividend income, and they will use that info to double-check your filing information. Make sure you collect all your earnings statements and document them on your return.

Sign on the line. It sounds almost silly, but forgetting to sign a return is actually a fairly common oversight. And the IRS won't process a return that doesn't have a signature. So, make sure you sign to avoid resubmitting your paperwork and possibly paying late-filing fees.

Remember, there isn't a lot of room for error when you're dealing with the IRS. A slight miscalculation could mean the difference between getting a return and writing a check – or worse, paying a penalty. It pays to work with a tax professional.

Beware of Tax Scams this Time of Year

As tax season rolls around, so do the scam artists. That's right...phishing criminals who want your personal information use this hectic and confusing time of year to prey on unsuspecting individuals.

These unscrupulous scammers send spam emails that appear to be from the IRS. These emails are often written to persuade you to link to a website that will allow you to update your data or receive important information. Remember, these phishing emails are quite sophisticated, and the links send you to what usually appear to be legitimate IRS or government websites. In reality, they are not. These sites will prompt you to divulge private information under the guise of the IRS requiring it, or sometimes, ironically, to protect you from identity theft or loss of privacy.

Although these emails are sophisticated and appear to be genuine, there are some simple steps you can take to avoid falling prey to one of these scams.

Always be suspicious of emails. Remember, the IRS does NOT initiate communication with taxpayers through email, but rather through the regular mail. If you receive an email that says it's from the IRS, you should immediately be suspicious and should forward it in its entirety to the IRS, so that they can take steps to shut down the fraudulent and bogus websites. The IRS requests that you forward all questionable emails to phishing@irs.gov.

Double-check the URL address. Keep in mind that all IRS websites begin with the following web address: http://www.irs.gov/. So, if you ever click a link in an email or visit a website that you believe is related to the IRS, the first thing you should do is confirm that the website begins with the correct URL address. Remember, sometimes it may "look" legitimate, but is actually an imposter site that is phishing for information. So always, always double-check the actual URL address before you type any information in the site.

Exercise extreme caution with attachments. When it comes to questionable emails, the best practice is to never open any attachments. That's because attachments are an extremely common method that hackers use to infect your computer with programs that may harm your computer or steal your personal information – often without you even knowing!

In today's technological environment, electronic communication offers us tremendous speed and convenience. But it can also be used for unethical purposes by scammers. Most organizations have worked very hard to put strict privacy policies in place. As a result, government agencies and financial institutions will almost NEVER ask you to divulge personal information via email.

If you receive any email asking for personal information of any kind, you should immediately be suspicious. When in doubt, call the customer service lines listed on your statements or documents and discuss the email that you received.

Make Sure You Get Your Money Now...Rather than Waiting for a Refund Next Year

While you're getting your tax information ready for the past year, it's a good time to look ahead to the coming year. For many of us, it's a constant balancing act to make sure we're withholding enough so that we don't have to pay at the end of the year, but getting a return at the end of the year isn't necessarily the best plan either. When you think about it, getting a refund check means that you let the IRS use your money throughout the year without paying you any interest. Wouldn't you rather have that money to use during the year?

Here's how you do it. The IRS allows you to increase the number of dependants on your W-4 withholding form, meaning that less will be withheld for taxes from each paycheck. But don't go overboard. You should only lessen the periodic tax withholding to match the expected refund. This way you are taking your refund as you go...instead of letting the IRS hold on to it.

Believe it or not, the IRS actually makes it easy to calculate! The IRS offers a handy IRS Bean Counter calculator for free, which lets you see how a change in withholding will affect your paycheck. Take advantage of this calculator today to see how changes can impact your take-home pay.

4:21 PM - Feb. 3, 2009 - comments {0} - post comment

What's the White House worth?

Real estate website Zillow.com announced it has calculated a Zestimate(R) value for the White House were it actually a home that could be bought and sold. That estimated value - $308,058,000 - would make this by far the most expensive residence in the United States, however still more than $23 million less than its value one year ago. Zillow(R) calculated this value using its proprietary Zestimate algorithm that determines a home’s estimated worth today based on public data and recent sales.

“Zillow publishes free data and Zestimate values for 84 million homes across the country - that’s more than 90 percent of U.S. homes. We thought it would be fitting to provide a Zestimate value for the most famous U.S. home of all as president-elect Obama and his family prepare to move in,” said Stan Humphries, Zillow’s vice president of data and analytics. “Obviously the White House will never be for sale, but given the immense amount of public data on this home, we thought it would be fun to crunch the numbers and say, ‘what if.’”

Zillow calculates and publishes updated home values on nearly all U.S. homes several times a week using a proprietary algorithm that considers data such as a home’s physical attributes, recent comparable sales, tax information and local market trends. To determine the White House Zestimate, Zillow’s team of data statisticians first looked at the home’s physical characteristics, including 55,000 square feet of indoor space, 132 total rooms, 35 bathrooms, 16 bedrooms, three kitchens and 18 acres of premium downtown Washington, DC land. They then considered the most expensive home sales in Washington, DC in 2008, as well as other historic homes in the DC area recently for sale, and calculated the premium historic homes typically fetch over similar homes with no historical significance. Zillow’s statisticians deemed the White House the most historic home in America and applied a maximum historical premium to their models to determine a Zestimate value today of $308,058,000.

To put that hefty price tag in perspective, Zillow’s data team ran a few more computations:

Were someone to take out a standard 30-year, fixed-rate mortgage on the White House today (assuming 20% down and a 6% rate), their monthly payment (including principal and interest) would be $1.48 million. Even with the Treasury Department’s proposed 4.5% rate on 30-year mortgages, a monthly payment would still top $1.25 million.

If President-elect Obama were to spend 30% of his gross income as U.S. president on housing, that would total $133,333 per year, or $11,111 per month(1), falling short by more than $1 million on a monthly payment for this home.

One would need to make $53.3 million in gross income a year to afford a standard 30-year fixed-rate mortgage on the White House, and have $62 million saved up for a down payment of 20%.

The White House’s estimated value has decreased by 7.2%, or more than $23 million dollars, in the past year. However, the home’s value has nearly doubled from the $167,861,500 Zillow estimates it was worth in January 2001 when George W. Bush was sworn in as president.

The White House Zestimate value is as of January 8, 2009. All Zestimate values are updated several times a week and the White House will be no exception, it will fluctuate based on market trends for DC and the Downtown neighborhood in which it resides.

4:01 PM - Feb. 1, 2009 - comments {0} - post comment

RSS Blog Feed

Categories

Favorite Links

Favorite Blogs