Creating the perfect home office

These days, more and more people are working all or part of the time from home, making a home office a necessity. Here are some tips for creating the perfect home office.

• Closets are great for storage. Not only can they house filing cabinets, but they are also perfect for storing the items you don't need to access on a regular basis. This helps to maximize the actual workspace of your office.
• Shelving is one of the most versatile options for storage. Shelves can be purchased cheaply and come in a variety of sizes. They are easily installed and take up zero floor space.
• Don't forget about your garage. When it comes to older files or anything that is rarely accessed, a garage can provide ample storage space. Word to the wise, however, the garage can be a dirty place. Plan accordingly by storing paper items in boxes and wrapping equipment in protective plastic.
• Visit a store that's dedicated to home organization. Nowadays it seems like nearly every mall has a store of this kind. You'd be surprised at some of the inexpensive, space-saving storage options available.

2:49 PM - Nov. 18, 2009 - comments {0} - post comment

Waiting really could cost you

 Low interest rates this year have lulled many people into believing that home loan rates in the 5.00% and lower range are "normal". This is not the case and if you are in the position where you could refinance or are considering buying a home, complacency is not your friend.

Stimulus provided by the Obama administration has been instrumental in creating the environment that has lowered rates, increased home sales and assisted distressed homeowners.

Uncle Sam Lends a Temporary Hand
Tick tock, tick tock. Just as summer turned to fall on September 22nd, deadlines await two programs that supplied the heat directed at the housing markets.

Government programs in the housing and interest rate arenas are slated to end in coming months. The time to take advantage of these programs is now. Stimulus programs from Washington have led to incentives for first time home buyers (FTHB), artificially low interest rates, and typically unallowable refinance transactions.

Infinite stimulus for the housing sector is not in the cards nor is it reasonable to expect. Deadlines are approaching. Whether you want to buy a home or need to refinance one, do not procrastinate. The best path is to investigate options now before you may find that none are available to you.

First Time Home buyer Alert
If you are a FTHB who wants to take advantage of the tax credit, think two words. GET BUSY. The tax credit of up to $8,000 is set to expire November 30th. While there is talk that this program may be extended, nothing is certain and millions of FTHBs have already taken advantage of the credit. With real estate closings taking as long as 60-90 days, according the National Association of Realtors, you need to get under contract shortly if you want to take advantage of the tax credit.

Home prices are down significantly across the country from their high points the past few years. However, median home prices in August were up 7.8% from their low point earlier this year. If you have been waiting for home prices to decline further, perhaps you should not. Great opportunities are available but many real estate agents report multiple contracts being offered on hot properties. If you wait, you may be disappointed.

Check with your mortgage professional to see if he or she can accommodate you if you go under contract in the next two weeks. Many lenders will still be able to help you but only if you have all your paperwork in order.

Rates Are Great – NOW!
Interest rates dipped in late September to near the lowest points ever recorded. As reported by Freddie Mac, rates for conforming loans approached 5.00% for a 30 year fixed rate and below 4.50% for a 15 year fixed rate with additional fees paid to obtain these rates. Rates for FHA, VA, and USDA Guaranteed loans typically offer slightly higher rates.

There is one reason that home loan rates are as low as they are. Last November the Federal Reserve announced a program to purchase up to $1.25 Trillion in mortgage backed securities. This effort lowered rates to the lowest level of all time and has kept rates, according to Freddie Mac, below 5.50% this year compared to rates as high as 6.48% last year for a 30 year fixed rate.

This program was slated to end December 31st of this year but in September's Federal Open Market Committee meeting, it was announced that the program will be extended to the end of the first quarter of 2010. However, the amount the Fed will purchase will not change.

Peter Hooper, chief economist at Deutsche Bank, told Bloomberg that a sudden end to the Fed purchases could cause rates to rise by a half to one percentage point. If you delay your financing, you could well see rates that are significantly higher than what is available today.

Upside Down – Refinance to 125% of Value
Even if you owe up to 125% more on your mortgage than your home is worth, you may be able to refinance. For example, if your home is worth $200,000 but you owe more than that, qualifying homeowners can now refinance up to $250,000.

The Making Home Affordable program was initially structured to accommodate homeowners with a new loan to 105% of their home's value. This has recently been increased to 125%. There are requirements to qualify including whether your loan is currently owned by either Fannie Mae or Freddie Mac. You can find out if your loan is held by either agency by going to the Loan Lookup section of the Making Home Affordable web site.

According to First American Core Logic, more than 15.2 million homes had negative equity in June of this year. This represents nearly 33% of all mortgaged properties across the country. Where in the past, being upside down on your loan would have precluded your ability to seek relief, you now may have an opportunity.

What Now?
With incredibly low interest rates and current stimulus programs available to help many, explore the options that may best suit you but do so quickly. However, just as you wouldn't go out Trick or Treating on November 1st, options that exist today may not be available to you should you wait.

2:52 PM - Nov. 16, 2009 - comments {0} - post comment

Roofing 101

This article is by Tim Gentry, technical director of DaVinci Roofscapes:

Replacing a roof is a major investment for any homeowner. When considering such a significant home improvement project, it makes sense that consumers will have questions.

“Thoroughly researching roofing options should be a priority for any homeowner considering a new roof,” says Tim Gentry, technical director of DaVinci Roofscapes®. “Many aspects should be considered, including a product’s warranty, style and durability. A homeowner should ask the question ‘what will this roof do for me’ before making a decision.”

According to Gentry, who served 20 years as a roofing installer and has been in the industry for 40 years, a roof should be carefully selected to complement a home’s design and geographic weather conditions. It should also provide long-term comfort and safety for those who live in the home. Some of the most frequent questions Gentry receives from homeowners nationwide include the following:

Q: What are the pros and cons of different roofing materials?

A: Three-tab asphalt shingles are relatively easy to install, inexpensive and look good on ordinary homes. However, they can be a poor environmental choice because they go to a landfill after 20 years, they perform only moderately well, and they don’t add any special design appeal to a home.

Real wood shingles or shakes look good on some styles of homes and are moderately priced, however they have little or no resistance to fire or impact unless specially treated. They also attract insects, have relatively poor long-term performance and are generally considered a poor use of our natural resources.

Real slate shingles also provide a good look on some styles of homes and can be considered very long-lasting when installed properly. However, they are very expensive and extremely heavy. During installation you can have a significant amount of waste from cracking and breaking of slate tiles.

Metal roofs are perfect for some very specific home designs. They have a unique look to them, are lightweight and snow can easily slide off of them. Watch out when it rains or hails though … these roofs are noisy on the inside of the home during storms.

Synthetic roofing tiles provide a high-performance option for homeowners. The tiles come in a variety of styles, including slate and shake, are lightweight and have long-term durability. These tiles are moderately priced and a good environmental choice. While the look complements many home styles, synthetic roofing tiles are moderately priced, so they’re not affordable for everyone.

Q: What are the life spans of different roofing materials?

A: Generally, real wood will wear out the fastest, followed by three-tab asphalt shingles. You can maybe get 15-20 years out of each of these. Some metal roofs can last up to 50 years, depending on their warranty. Synthetic roofing tiles last up to 50 years and require minimal maintenance attention. Real slate also lasts many years on a home … some slate can last up to 100 years!

Q: Why would I consider synthetic roofing materials over traditional asphalt products?

A: Aesthetics and durability. Typical asphalt shingles look ordinary. Consider this: when you look at many homes, especially those with steep roofs, almost half of what you see is the roof. When selecting a roof, think about curb appeal and resale value. Synthetic tiles make an ordinary home look extraordinary. Additionally, they give the homeowner peace-of-mind because these roofing tiles will perform exceptionally well against fire, impact, wind and other weather conditions.

Q: What is the synthetic roofing material made of?

At DaVinci, we use an engineered polymer, which is impregnated with fire retardant and state of the art advanced UV stabilizers specifically formulated for the tough conditions tiles are exposed to in all climates throughout the year. Our roof tiles use only 100% pure virgin resin in order to assure consistency, and are 100% recyclable.

Q: Do roofing tiles become more brittle over time?

A: That depends on the kind of roofing tiles. Asphalt and real wood roofing materials do become more brittle toward the end of their life cycles. DaVinci tiles do not have that problem. The engineered polymer used in DaVinci synthetic tiles changes very little over time or when subjected to extreme temperature and weather conditions. Third party independent extended life testing has shown minimal degradation of the material’s performance qualities.

Q: Which roofing tiles are consistent with their colors and won’t fade over time?

A: Most synthetic roofing tiles have their color blended completely throughout their tiles. These products won’t fade over time because UV protection has been built into each tile. When exposed to continual sunlight and UV rays, many other products, such as metal and asphalt roofing, will indeed fade over time, losing their original sharpness of color.

2:40 PM - Nov. 12, 2009 - comments {0} - post comment

Home affordability

The 2009 Coldwell Banker® Home Price Comparison Index (HPCI) recently released found a price gap of more than $2 million between the most expensive and most affordable U.S. housing markets.

In the annual comparison of similar 2,200-square foot homes in 310 U.S. housing markets, La Jolla, Calif. led the list as the most expensive real estate market in the country with an average home price of $2,125,000. Grayling, Mich., also known as the “canoe capital of the world,” ranked as the most affordable market in America, where a similarly sized home costs $112,675.

La Jolla was joined on the most expensive list by 13 other California markets while Grayling was one of 20 Midwest communities on the most affordable list. Internationally, Singapore was the most expensive market for the same type of home, $1.9 million U.S. dollars, compared with Salinas, Ecuador, which at $69,375 U.S. dollars was the most affordable studied international market.

Differing from most housing reports that compare median prices, the annual Coldwell Banker HPCI, provides an apples-to-apples comparison of similar 2,200 square foot, four-bedroom, two-and-a-half bath homes in the United States, Puerto Rico, Canada and a sampling of countries/territories outside of North America where Coldwell Banker Real Estate has a presence.

”While price differentials are interesting to compare, I am most intrigued with the affordability levels now seen across much of the nation,” says Jim Gillespie, president and chief executive officer of Coldwell Banker Real Estate LLC. “The four-bedroom, two-and-a-half bath home is one we deem ‘aspirational’ and usually purchased by move-up buyers experiencing lifestyle changes. Thirty percent of the markets show this type of home to be below $200,000, illustrating the opportunity to take advantage of price declines, interest rate levels and increased selection of homes. Encouraging these move-up buyers back into the market is a crucial next step toward helping to rejuvenate the housing industry and the overall U.S. economy.”

A “Snapshot” of U.S. Home Affordability

Offering a “snapshot” of affordability across the United States, the Coldwell Banker HPCI evaluates average home values for select 2,200 square foot single-family homes with four bedrooms, two-and-one-half baths. The cumulative average sales price of the four-bedroom homes surveyed in the 310 U.S. markets (including one in Puerto Rico) covered in the Coldwell Banker HPCI is $363,460.

Through the comprehensive HPCI section on the Coldwell Banker website (http://hpci.coldwellbanker.com), prospective homebuyers and sellers can calculate what similar homes may be worth in other areas and gather preliminary intelligence about the affordability of housing from one market to another.

2009 Coldwell Banker HPCI – Highlights and Top Market Lists
Affordable and Attractive: In addition to Grayling, Mich., the following are interesting tidbits about the other nine most affordable U.S. markets:

-Akron, Ohio ($121,885), won the All-American City award three times and is birthplace to the ice cream cone
-Fayetteville, N.C. ($130,875), a historic city known for its strong military ties
-Canton, Ohio ($131,867), birthplace of American professional football and home to the NFL Pro Football Hall of Fame
-Detroit, Michigan ($132,000), America’s automotive manufacturing and Motown music hub
-Arlington, Texas ($138,775), home to the Dallas Cowboys’ new stadium which will host the 2011 Super Bowl XLV, and the Texas Rangers’ Ballpark
-Macon, Ga. ($139,007), hometown to many legendary soul and blues acts like Otis Redding, and home of the Georgia Music Hall of Fame
-Eau Claire, Wis. ($141,270), which has been named one of the 100 Best Communities for Young People by America’s Promise in the past
-Port Charlotte, Fla. ($142,750), which is minutes away from the Gulf of Mexico and setting to some of the country’s best sunset views
-Wichita, Kans. ($144,625), home to more than 30 museums and a haven for art-lovers, theatre-goers and golfers alike

Low Cost to Homeownership: In total, there are 84 U.S. markets in which the sample home price averages under $200,000. The monthly mortgage cost for homes in this price range could average less than $600, and down payments could amount to less than $4,000.

Luxury Living: La Jolla, Calif. heads the list as the most expensive real estate market in the country ($2,125,000), beating out its California neighbor Beverly Hills, where the average home costs $1,981,750. Greenwich, Conn., whose average price of $1,519,250 places it as the most expensive market on the East coast, followed by Boston at No. 7 overall. In total, 11 U.S. markets exceeded the $1 million average price for the surveyed home. Note: Manhattan in New York City was not included in the study because of the lack of comparable single-family homes.

On Average: The overall national average price of homes in the 2009 Coldwell Banker HPCI is $363,401.

Canadian Prices Reach Record Levels: Canada’s brief market downturn is over, with record prices now seen throughout the resurgent market. Vancouver, BC leads the hot-again west coast at $1.17 million U.S. dollars for the studied home, nearly double that of nearby Burnaby BC at $611,243. Boomtown Fort McMurray at $593,340 surpasses Calgary as Alberta’s most expensive market. Canada’s largest city, Toronto, Ontario comes in at $766,643, while Charlottetown PEI remains the country’s most affordable market, priced at $147,560 U.S. dollars.

Most Expensive Internationally: The most expensive market outside the United States is Singapore, where an HPCI subject home averages $1.9 million U.S. dollars, ten percent lower than La Jolla. Coldwell Banker Real Estate compared a total of 57 markets in 29 countries outside of the United States, with those international home prices averaging $487,844 in U.S. dollars.

The top 10 most expensive and most affordable surveyed U.S. markets overall in 2009 are:

Rank   Most Expensive   2009 Avg. Sales Price   Most Affordable   2009 Avg. Sales Price

1            La Jolla, Calif.              $2,125,000             Grayling, Mich.              $112,675

2           Beverly Hills, Calif.       $1,981,750             Akron, Ohio                    $121,885

3            Greenwich, Conn.         $1,519,250             Fayetteville, N.C.           $130,875

4           Palo Alto, Calif.              $1,489,726             Canton, Ohio                  $131,867

5            Santa Monica, Calif.    $1,460,912             Detroit, Mich.                 $132,000

6            San Francisco, Calif.    $1,363,250           Arlington, Texas             $138,775

7            Boston, Mass.                 $1,337,578           Macon, Ga.                       $139,007

8            Newport Beach, Calif.   $1,315,505           Eau Claire, Wis.               $141,270

9            Palos Verdes, Calif.        $1,237,041           Port Charlotte, Fla.         $142,750

10          San Mateo, Calif.            $1,090,000          Wichita, Kans.                 $144,625

2:16 PM - Nov. 6, 2009 - comments {1} - post comment

Manufactured homes - naturally "green"

This article is by Az Housing.

There is a “green” building revolution taking place, and manufactured housing is squarely in the forefront of this trend.  Due largely to the fact that manufactured homes are built in a controlled factory environment, implementing the latest construction technologies is easier, assembly is more efficient, and greenhouse gas emissions and materials waste is greatly reduced. All these factors directly contribute to the greater affordability of today’s manufactured homes. 

A number of efficiencies are inherent to the factory-built process. Factory employees are scheduled and managed more efficiently, as opposed to contracted labor employed by the site-built housing industry. 

Innovative building technologies are not always suitably adapted for site-built construction. Heavy machinery and delicate electronic equipment that would require daily transportation to the building site and back is inefficient to say the least, not to mention the additional man-hours required for set-up and the many pounds of pollutants released by transport vehicles. New equipment can be easily integrated into the factory environment, where it is protected from the elements, leading to a longer life span, and saving time, money and natural resources. The use of precision machinery also contributes to more efficient use of materials by greatly reducing human error and generating far less wasted product. 

Manufactured home building also benefits from the ability to purchase large quantities of building materials and products. As a result, manufacturers are able to negotiate better prices on materials for their homes and pass these savings on to the homebuyer. The controlled environment and assembly-line techniques also help manufacturers avoid many of the problems encountered with site-built construction, including inclement weather, theft, vandalism, and damage to building products and materials stored on site. 

Factory construction can also be credited with a substantial reduction of greenhouse gas emissions, as most of the materials-handling machinery is powered by propane and compressed natural gas, both of which are cleaner, more efficient, and more economical than gasoline and diesel-powered equipment. There is also extensive utilization of electrically operated machinery, which would require diesel generators for site-built operation. More and more building materials, such as adhesives, paints and sealants, are low VOC and no VOC, further reducing harmful pollutants in the environment. 

The continual evolution of energy efficiency resources has resulted in a significant jump in the numbers of manufacturers building EnergyStar-labeled Manufactured Homes. Manufacturers are taking full advantage of the latest discoveries in material recycling to produce insulation, carpeting and building materials that not only outperform traditional materials, but also last longer, help reduce costs and are environmentally friendly as well. Dual-pane windows, compact fluorescent light bulbs (CFLs), and more energy-efficient heating and cooling equipment and appliances help homeowners realize substantial savings on their energy costs. 

Manufactured housing offers a unique source of quality, non-subsidized homes that people can afford. With an average per-square foot cost savings of up to 35% less than site-built homes, with actual savings dependent on the geographic region, today’s manufactured homes provide homebuyers with the best value to be found in the housing marketplace. 

An emphasis on eco-friendly building techniques and innovation is propelling the manufactured housing industry forward in many new areas. With continued advances in technology and public acceptance, manufactured housing will remain a major provider of quality, affordable, environmentally friendly housing in the 21st century. 

5:30 PM - Oct. 19, 2009 - comments {0} - post comment

Tax breaks for everyone

This article is by Amy McAnarney, executive director of The Tax Institute at H&R Block.


First-time homebuyers aren’t the only ones to benefit from tax breaks. H&R Block urges homebuyers who are relocating for work or buying for other reasons to take advantage of incentives that can lower their tax bill. Plus, sellers should know how to report profits and losses to avoid a hefty tax bill.

“Now is a great time to buy or own a home,” said Amy McAnarney, executive director of The Tax Institute at H&R Block. “There are great tax incentives for buying and owning a home, whether you’re a first-time homebuyer or a repeat buyer. People selling their homes also need to know if they’ll need to report the profit to the IRS.”

Buying a home
Homebuyers can make the most of several tax breaks that help lower their tax bill based on the purchase of an existing or new home. For instance:
-First-time homebuyers: The Recovery Act provides a credit of up to $8,000 if a taxpayer buys a home between Jan. 1, 2009 and Nov. 30, 2009. The homebuyer also must not have owned a home in the previous three years and the home must be the primary residence.
-Points: The points paid on a mortgage are generally deductible as interest if taxpayers paid enough of a down payment or earnest money at closing to cover the points. Homebuyers can deduct the points even if the seller paid them.
-PMI premiums: Buyers who make a down payment of less than 20% of the home’s cost usually pay private mortgage insurance (PMI). But the PMI premiums generally can be included in your home mortgage interest deduction.
-Job relocation: Taxpayers who moved due to a job change can deduct the cost of moving. In order to take the deduction, they must move within one year of starting the new job, work full-time at least 39 weeks during the first 12 months at the new location, and the new job must be at least 50 miles further than the old residence was from the old job. Qualified moving expenses include your out-of-pocket cost of moving yourself, your family, and belongings to the new location.

Owning a home
If a taxpayer typically has claimed the standard deduction, owning a home will likely mean itemizing for extra deductions. Some tax breaks for homeowners include:
-Mortgage interest: For most taxpayers, the biggest tax break comes from deducting mortgage interest. Taxpayers can deduct interest on up to $1 million of the loan used to buy, build, or make substantial improvements to a main or second home. Interest on a home equity loan up to $100,000 secured by the main or second home is deductible too.
-Real estate taxes: Taxpayers can deduct real property taxes they pay on real estate to their municipalities, whether made directly or through their lending company.
-Home improvements and energy credits: The Recovery Act gives incentives to homeowners making improvements and energy-efficient upgrades to their homes. Taxpayers can get credits for 30% of the cost of qualifying doors, windows, HVAC, water heaters, roofing and insulation, up to a maximum credit of $1,500. Solar energy and wind energy systems are each 30% of cost with no maximum.

Selling a home
Sellers won’t have to pay taxes on a profit up to $250,000 for single filers and $500,000 for joint filers. Taxpayers must have lived in the home for at least two of the past five years to claim this exclusion. In some cases, taxpayers can claim a partial exclusion if they are selling due to a change in employment status, health reasons, divorce or other unforeseen circumstances.

Taxpayers whose homes were foreclosed may be able to exclude the mortgage debt that was forgiven in connection with the foreclosure. This provision applies to debt forgiven in calendar years 2007 through 2012, of up to $2 million is eligible for this exclusion ($1 million if married filing separately).

“Homeowners should maximize all the credits and deductions available. Knowing the tax incentives and how to take them is key for homeowners,” McAnarney said.

11:28 AM - Oct. 13, 2009 - comments {0} - post comment

Property tax bills

This article is by Pat Mertz, Kiplinger's Personal Finance.

If you anticipate a silver lining in the black cloud of declining home prices – in the form of lower property-tax bills – you may be disappointed. The National Taxpayers Union figures that as much as 60% of taxable property in the U.S. is over-assessed, largely because assessment cycles haven't caught up with the decline in home values.

In California, for example, a home's assessed value is based on its purchase price, plus increases of up to 2% annually. The house isn't revalued until it's sold again. To capture the price plunge of the past few years, homeowners must file an appeal and prove that their home's assessed value exceeds its market value. In San Diego County, the assessor's office processed 80,000 appeals in 2008; the average reduction in assessed value so far is $110,000, equivalent to a tax cut of $1,200.

Many jurisdictions calculate a home's assessed value as a fraction of its market value, so do the math to make sure your home is priced fairly. Also verify that you have received any breaks you're entitled to, such as a homestead exemption or a reduction for seniors or veterans.

How to appeal. Go to the assessor's Web site or office to double-check the "property card" and any working papers for your home. Are the figures for square footage and number of bedrooms and bathrooms correct? Has the assessor accounted for any features that could detract from your home's value, such as an irregularly sized lot or a carport instead of a garage? Pull the property cards for five or ten neighboring homes that are similar in terms of age, style and features. If the assessments on similar properties are a lot lower – 10% or more – you have a good case based on uniformity.

Otherwise, if you believe your home's assessed value exceeds its market value, you'll have to provide sales-price data for several comparable homes. You can get that information from a real estate agent, or check the local public library or your county assessor's or county clerk's office. Ask the assessor whether a recent appraisal for, say, a refinancing is acceptable proof of your home's market value.

Two chances. Read your assessment letter for details on how to appeal. You'll probably have two windows of opportunity: During the first, you may request a reduction in the assessed value of your home for the forthcoming tax bill. During the second, you may appeal for a retroactive reduction and refund.

Until your appeal is resolved, pay your tax bill in full to avoid incurring penalties and a lien against your home. As a last resort, you could go to court, but that's an expensive process usually best suited for commercial property owners with more at stake.

You may see advertisements for companies that will help you appeal your assessment, often in exchange for about half of any savings on your tax bill. But with the right preparation, you can probably do just as well yourself using a guide such as How to Fight Property Taxes ($6.95), from the National Taxpayers Union. The NTU's Web site also has links to state and local taxpayer associations that may offer further insight into the appeals process.

1:56 PM - Oct. 5, 2009 - comments {0} - post comment

Which Bills Should I Pay This Month?

This article is by Jeff Mande (President) and Marlin Brandt (COO) of ApprovalGUARD


 

As our economy continues to stagnate, more and more Americans are faced with the challenge of picking which bill(s) they should pay or not pay because they just don’t have enough money to cover them all. The question often revolves around which bill(s) is the most important to pay “now:” their mortgage/rent, car payment, utility bills, cable bill or credit cards? Although this seems like a fairly straightforward answer, for many Americans, it’s not as black and white as you would think.

Many different things impact these decisions, such as necessity, amount of money owed and perceived consequences of not paying. Intuitively, paying your mortgage/rent and car payment first seems like the easy answer. However, many Americans are faced with the dilemma that the value of their homes and cars are currently less than the amounts they owe. As a result, many believe they have no alternative but to turn the keys over and walk away.

We believe it’s important that consumers are fully educated, prior to making these decisions, regarding the impact these decisions may have on their credit profile in both the short- and long-term. All too often, an uninformed decision can result in a worse-than-expected result and a negative impact to their credit score.

There may be several steps a family can take to tighten their belt while strategically considering the best options that meet their needs and have the least negative credit score impact. In many cases, it all starts with making a list of their debts as they are today and then building a plan. Each debt is reviewed to identify any and all options for reducing the monthly payment (interest rate change, term change, debt consolidation, selling of respective asset, etc). Several reputable services offer a personal coach and online tools to help consumers with tips on building their plan. It takes a little work, but when it’s all done, it is typically well worth the time and effort.

In the majority of foreclosures/defaults occurring across the United States, one of borrowers’ biggest mistakes is that they never contacted their lender. Home loans typically have the biggest overall impact on credit scores. If a consumer is struggling to maintain their house payment, the first steps should be to:

1) Contact their home loan servicer or lender
2) Explain their challenge
3) Ask them to assist with finding any available solutions

Home interest rates are at their lowest point in years and, for some homeowners, simply refinancing their first and/or second mortgage will be the best option. However, lenders have more options at their disposal today than ever, including HASP (the Homeowners Affordability and Stability Plan), so there are multiple ways they can help consumers in lieu of foreclosing.

Regardless of their personal situation, each individual has an opportunity to take the guesswork out of the process and then begin to understand their options to more effectively manage their credit and debt. The key to the process is to become proactive because the importance of building a plan to evaluate and optimize your existing debt and credit has never been greater. The good news is that options and services exist to help you weather this storm.

12:46 PM - Oct. 1, 2009 - comments {0} - post comment

Paying off debt

The following article is from The Kiplinger Letter.

Should you be putting money in savings or investments at the same time you're paying off a loan?

That's one of the most frequently asked questions we get at Kiplinger, and the answer isn't always obvious. Even if you have run up a balance on a high-rate credit card, you may hear a nagging voice in your head urging you to keep plowing money into savings for retirement, college for the kids or a new home.

The simplistic solution – to invest if you can earn a higher interest rate than you're paying on your loans – can be downright dangerous. That became clear when, in the late '90s, a wave of questionable advice suggested that homeowners actually create more debt to invest in the booming stock market – by pulling out some equity via a cash-out refinancing or home-equity loan. Then came the bear market.

The best answer lies in separating good debt from bad debt. It's almost always a good idea to get rid of credit card and other high-interest loans before you start setting aside cash. However, you probably don't want to accelerate mortgage or student loans at the expense of saving for retirement.

Begin by making a list of all your debt and the interest rates on those debts to prioritize which ones you should pay first, says Deena Katz, president of Coral Gables, Fla., financial planners Evensky, Brown and Katz. Then look at your alternatives for saving and investing and, if necessary, reset your priorities.

Step 1: Pay off the high-interest debt

If you have high-interest credit card debt, tackle that first. It doesn't make sense to start saving or investing until you've paid off this debt. You'd have to make more than 20% after-tax return on stocks, bonds or mutual funds to make them a better investment than paying off a credit card with an interest rate above 15%, says Clark Randall, a financial planner with Lincoln Financial Advisors in Dallas.

There is one exception to that rule of thumb: If your employer offers a 401(k) plan and will match your contributions up to a certain level, fund it up to that level – even if you have credit card debt – because you're getting a 100% return on your investment, says Randall. Contribute more than the match level once you've paid off your consumer debt.

If you're drowning in debt, liquidate assets such as stocks and use your savings – but not a 401(k) or IRA – to pay off your credit cards. If you're in dire straits, you can borrow up to 50% (no more than $50,000) from a 401(k). Although you pay yourself back with interest, you give up tax-free compounding, and you will have to pay back the loan immediately if you leave your employer.

Step 2: Identify the good debt

For the most part, it's usually not a good idea to pay off your home mortgage unless you have a lot of extra cash. After all, Uncle Sam refunds part of your interest payment if you itemize your deductions on your tax return.

Use your money instead to invest in liquid assets. However, Randall recommends paying off your mortgage (and any other debt you might have) by the time you retire so you can get by on less money.

Don't be in a rush to pay off student loans, either. The old rule that allows a tax deduction only for interest paid during the first five years of repayment is ending. Qualifying interest on student loans can be written off no matter how long it takes to pay off your loans.

However, you can ease the burden of repaying your loans. Thanks to recent legislation, you can now shop around for the best terms. For example, lenders may offer a rate reduction if you elect to have your loan payments automatically deducted from your bank account. And some lenders will knock more off your rate after 24 or 36 months of on-time payments. Compare deals at ConsolidationComparison.com.

Step 3: Save and invest

Once you've eliminated high-interest consumer debt, start saving as much as you can. The best place to begin is a 401(k). The next best option is an IRA (see Open Your First IRA).

In addition to putting money into a retirement account, you need cash that's readily available in an emergency so you don't have to rely on credit cards. (If you are paying down your credit card balances and still paying high rates, it is probably better to keep paying off the cards and borrow from them in case of an emergency, says Katz.)

Set aside enough money to tide you over for three months if your paycheck suddenly stopped. If you have less-than-steady income, such as from a commissioned sales position, or a job that has more exposure to economic fluctuations, consider setting aside six months' income. (Use our calculator to see how much you should save.)

Sock it away in a high-yield savings account or money market fund on a monthly basis until you reach your desired amount.

8:25 PM - Sep. 21, 2009 - comments {0} - post comment

Timing is everything

These are new times in the mortgage business. Government involvement comes to those who need it, those who want it, and those who didn't ask for it. Some of the government's actions bring rewards for those who act soon. If you are going to be seeking financing in the next few months, here are some things you need to know.

Show Me Some Money
Part of the Washington Stimulus Package from both last year and this year was the creation of an income tax credit for first-time home buyers. One significant change to the original credit this year was that the amount of the possible credit was increased to $8,000, up from $7,500 and that it does not have to be repaid.

Let's review the last part of this one more time. The tax credit extended does not have to be repaid. This means that if you qualify for an $8,000 credit, it is free money for you to choose what to do with at your discretion. If you have some revolving debt you want to pay off, so be it. Have a car loan less than $8,000, pay it off. Want to start a savings plan with the money because you have all your other ducks in a row? Congratulations, you are on your way!

There are some restrictions including maximum personal or household income and an expiration date of November 30, 2009 but if you qualify, get busy shopping. This is a great benefit we will likely not see again. The National Association of Realtors has reported that if Congress does revisit the tax credit, it will not likely occur before October.

Show Me Some Time
Effective July 30, 2009, legislation will go into effect that will mandate certain "cooling off" periods surrounding home loan applications. Dubbed HERA, or the Housing and Economic Recovery Act of 2008, the law mandates that certain trigger points of the mortgage application offer consumers time to evaluate whether a transaction is best suited for them.

The impact from this legislation is that additional time should be allotted to ensure on-time closings, in some cases as much as 15-30 days to provide ample time to meet all potential delays.

Starting with the initial application, three business days must pass before a lender can accept payment for anything besides a minimal fee for a credit report, which means that a lender cannot accept or collect an appraisal fee in this initial three-day time frame. During this time, the borrower is expected to review the documents to ensure that all fees and the annual percentage rate or A.P.R. are within reason and match what was disclosed upfront.

In addition, if at anytime in the application process a change to the A.P.R. occurs in excess of .125% for a fixed rate or .25% for an adjustable rate mortgage, a new Truth in Lending statement must be delivered to the borrower and three business days must pass before the mortgage can be funded.

Items that can trigger a change in the original A.P.R. can include but are not limited to locking a floating rate at a higher rate than on the original application, a change in the loan program, a change in the originally estimated closing date, and a change in fees or down payment.

Show Me Some Value
A property appraisal can no longer be ordered by anyone directly involved in the origination of a mortgage application where Fannie Mae or Freddie Mac will be the final investor in a mortgage. This is done to ensure that any final value in the appraisal will not be improperly influenced by any parties involved in the origination of the loan.

This is a result of the Home Valuation Code of Conduct (HVCC) that was adopted earlier this year. The impact of HVCC has been felt by consumers both purchasing and refinancing property as many appraisals are being ordered from Appraisal Management Companies, a third party appraisal clearing house, and the appraiser selected may not be directly familiar with a specific home's community or may be from out of the area.

One other complication has been delays of property inspections resulting from additional parties now required in the ordering process.

In order to best be prepared for the appraiser, it is recommended that both buying and selling agents involved in purchase transactions and homeowners in refinance transactions have information available for the appraiser to support a believed value for the transaction.

Show Me Some Great Rates
The Federal Reserve announced last November that they would start purchasing Mortgage-Backed Securities in an effort to inject liquidity into the mortgage markets and lower interest rates.

The immediate result was dramatic, causing rates to fall to the lowest recorded levels we have seen in our lifetimes. Available interest rates in the first quarter of this year were well into the mid 4.00% range for both 15 and 30 year fixed rates alike.

While current interest rates have climbed up since their low point, historically speaking, interest rates remain near all time lows and below the point set before the Fed made their announcement.

One very pertinent fact to this is that the buying of Mortgage-Backed Securities from the Federal Reserve is slated to stop on December 31, 2009. What is unknown at this point is what the immediate impact will be to mortgage rates when the Fed stops buying. Conventional wisdom would likely state that rates will rise as the market returns to a normal selling process for Mortgage-Backed Securities.

The biggest question though is in what time frame will any impact be felt? The best path to follow for taking advantage of lower interest rates is to ensure any new loan closes before the end of the year.

Show Me Some "Underwater" Rate Relief
When the Making Home Affordable Refinance Plan was first released, people that experienced declines in their property values below their existing mortgage amount were offered the ability to refinance. The ability to refinance though was limited to people whose new loan amount would not exceed 105% of the new appraised value. An example of this would be that if a home was to appraise at $100,000, a new loan amount of $105,000 could be originated on behalf of a homeowner.

Changes to the Making Homes Affordable Plan were recently enacted to allow for homeowners to refinance with a new loan up to 125% of the homes value. An example of this would now be that a homeowner could refinance a new loan to $125,000 with a home that would appraise at $100,000.

Show Me Some Payment Relief
People who find themselves in need of payment relief but are unable to refinance due to credit qualifications or property valuation may be eligible for a loan modification. A loan modification is an adjustment to the original terms of an existing mortgage to help someone obtain a more affordable payment.

A reduction in payment can be achieved through any single or multiple changes in the current terms including a change in rate, the length of time remaining on the note, the allowance of interest only payments and possibly a reduction in the principal balance of the loan.

When obtained through the Making Home Affordable Plan, the intent is to bring the qualifying mortgage payment(s) to 31% of a borrower's monthly adjusted gross income. To qualify for this plan, the mortgage must be owned by Fannie Mae or Freddie Mac.

Due to securitization of many mortgages in the last ten years, many mortgages are not owned by either agency but that does not mean that non-agency loans are ineligible for modification. In fact, many non-agency loans are being modified.

It is possible for distressed homeowners to modify their mortgage on their own, however the process has been described as very difficult and many legitimate modification companies have reported that people attempting to do it themselves have not obtained the best results possible.

If someone needs assistance in determining the best path to take, reaching out to their servicer or a professional modification company is suggested. A professional and legitimate modification company will offer a free consultation before proceeding to make homeowners aware of their options.

In either situation, people seeking a modification need to be prepared to offer a lot of documentation to prove they are experiencing hardship. One important point to remember is that while many people have been taken advantage of by illegitimate modification companies, many others are finding the use of a professional to be worthwhile.

Also, while the government is stating that people should not work with a modification company, both Fannie Mae and Freddie Mac are both run by the government and it is in the best interest of taxpayers to minimize reductions in existing mortgages owned by the agencies.

Regardless of Your Situation – Act Soon
Many government sponsored programs are now in place to assist people with both purchasing and refinancing their mortgage. However with the different deadlines in place, the time to take advantage of these programs is now.

Also, with additional legislative requirements impacting the loan process, proper expectations need to be in place before scheduling closing dates.

8:22 PM - Sep. 21, 2009 - comments {0} - post comment

Paint up, fix up

Like many home improvement jobs, a painting or coating job can be daunting. To exacerbate the issue, consumers-more so than in the past are looking for a “big change” from a painting project (60% in 2009 versus 47% in 2008), according to a study of U.S. households recently released by The Valspar Corporation, a leader in the paint and coatings industry.

“Consumers looking to achieve big changes should look to painting and additional coatings projects to dramatically change the look of a home,” said Scot Karstens, vice president of Architectural Coatings, The Valspar Corporation. “For example, consumers can boost curb appeal and increase the value of a home by changing the color of a family room, staining a deck to enhance the wood’s natural grains and applying epoxy floor paint to the garage. Best of all, coatings projects are much less labor intensive than a remodel or repair job.”

Fresh Coat = Fresh Look
According to Valspar’s third annual “paint angst study,” while consumers are looking for big change with a paint project, roughly one in five consumers (19%) identify color selection as putting the “pain” in painting. When it comes to color choice, 60% of consumers gravitate towards a neutral palette rather than a bold color (27%), which can make it difficult to achieve a major transformation.

However, Ann McGuire, founder of Beehive Studios and Valspar color consultant, says it’s possible to choose a neutral color and accomplish a big change. Choosing a color that is a shade darker or lighter from the original neutral chosen can offer a more distinct look.

When consumers do choose to go bold, green is the most popular choice (42%), followed by yellow (33%). Green is a consistent favorite due to the color’s prevalence in nature and ability to blend with the home’s interior. With cleaner yellows making a splash in fashion and home décor in the past year, softer yellows can be a nice option. Additionally, consumers don’t need to re-paint the whole house to make a big impact. By changing just one room within the house, the rest of the home takes on more interest. For maximum effect, try working on a central room within the home like the family room, entry way or hall way.

All Decked Out
Beyond painting, consumers can vastly upgrade the look of their home by staining or re-staining the deck. In fact, Remodeling Magazine’s 2008-2009 Cost versus Value report indicates projects that enhance a home’s curb appeal-such as siding and decks-consistently have the highest return on investment.

Stains can enhance a wood’s natural appearance and add color to complement or match your exterior decorating scheme. In the summer months, decks take a beating from UV rays, foot traffic, drink spills or barbecue grills. A clean deck is a durable deck, so homeowners should clean the deck every one to two years and re-stain every two to four years for maximum longevity.

Polish it Up
While painting and staining are more common do-it-yourself projects, concrete coatings can set a home apart from the rest of the block. A recent consumer survey revealed that more than half (53%) of U.S. households that have an outdoor living space say the surface has concrete. With concrete coatings, consumers can protect their concrete, add a polished and decorative look to a garage floor, enhance the walkway leading up to the front door, or match the outside patio to the rest of the home’s décor.

8:19 PM - Sep. 19, 2009 - comments {2} - post comment

Is it time to worry about inflation?

If you've seen the news lately, you know concerns about inflation are increasing. But what does this really mean to you?

Let's start with what it means in general. The Bureau of Labor Statistics defines inflation as the "upward price movement of goods and services in an economy." There are a variety of indices that measure different aspects of inflation-including the Consumer Price Index, whose latest reading showed that the cost of living in the US rose more than forecast due largely to a jump in energy costs.

The fact is that inflation is a very serious issue that many traders, legislators and lenders are concerned about because it will likely be on the rise as 2009 proceeds.

How Does Inflation Impact Interest Rates...and Why?

The bottom line is that as inflation increases, home loan rates will rise too. That's because lenders know that a rise in inflation actually diminishes the value of the money they receive over the life of a loan, as the money they receive for payment simply won't go as far. So when they see changes in inflation or even anticipate a rise, they increase their interest rates to make up for the loss in future buying power that will happen as a result of inflation.

Two Resources to Learn More...

To help you learn more about this important topic, take a look at two important links.

The first link takes you to a short news clip featuring the nation's foremost mortgage industry expert, Barry Habib. In this video, you'll learn how inflation impacts interest rates and what the outlook is for down the road.

The second link is as much educational as it is fun.

The Bureau of Labor Statistics has included a CPI inflation calculator on its website. This easy-to-use calculator allows you to see how much your money was worth in an earlier period-and vice versa. Simply type in an amount of money, select the years you want to compare, and hit the "calculate" button. The results are instantaneous...and may surprise you!

For instance, did you know that $33.66 in 1979 had the same buying power as $100 in 2009? That's a huge change in the last 30 years. This is a great way to see how inflation impacts your buying power. You can even use the CPI inflation calculator to have a discussion with children about inflation...and show them how much the value of a dollar has changed over the years.

7:50 PM - Sep. 15, 2009 - comments {0} - post comment

Why buying is better than renting

Christine Van Tuyl and Margaret La Grange, an award-winning mother-daughter team with Prudential California Realty in Coronado, have compiled their latest list, the “Top 7 Reasons Why it’s Better to Buy then Rent in 2009.”

“Many renters are realizing that the increase in affordability- combined with low interest rates and tax incentives- are tipping the scales away from renting and towards homeownership,” said Christine Van Tuyl, agent with Prudential California Realty. “Simply put, some renters are finding that they can get a bigger bang for their buck if they buy.”

Following are the top 7 reasons why it’s better to buy than rent in 2009

1. Buying doesn’t always cost much more than renting. According to a recent study by the Associated Press, the gap between monthly mortgage payments on a median-priced home and the median rent has decreased from $777 to just $221 in the last three years.
 

2. Affordability is at an all-time high. In markets across the nation, including the inland areas of California, prices have declined by nearly 40%.
 

3. Buyers can take advantage of tax benefits of home ownership. Perhaps the biggest tax break is reflected in the house payment homeowners make each month. For most, the bulk of that payment goes towards interest. All interest is deductible, unless the amount is more than $1 million. Property taxes are also deductible.
 

4. Buyers can purchase homes with little or no down payment. Qualified first-time buyers may be eligible for loans insured by the Veterans Administration (VA), which does not require a down payment. Another loan product gaining popularity are those insured by the Federal Housing Administration (FHA), which require only a down payment of 3.5%.
 

5. The Tax Credit. First time homebuyers-defined as anyone who hasn’t owned a home in the last three years- are entitled to an $8,000 tax credit. (Ownership of a vacation property or a rental property doesn’t disqualify homebuyers from this program.) No repayment is required for homes sold after 36 months of occupancy and ownership.
 

6. Mortgage rates are at all-time lows. Take advantage of low 30 year fixed rates. We haven’t seen rates this low in the last 3 decades.
 

7. It’s yours. It feels good to own your own home. After all, you can paint it any color you want, make improvements, and plant a little garden.

12:46 PM - Sep. 13, 2009 - comments {0} - post comment

Energy efficient homes of the future

This article is from Arizona Housing.

In these economic times, the decision to purchase a home has become a very serious consideration, with cost of ownership in both the short and long term being in the forefront of the buyer’s mind. One of the most important factors consumers should consider when buying a home is its energy efficiency rating, as this can add up to substantial savings over the life of the home. Today’s energy efficient manufactured home is no different from any other home, except it has been built off-site, usually in a controlled factory environment, using the latest in energy efficient technologies. Coupled with a lower cost per square foot as compared to site-built homes, today’s manufactured home is a smart investment for savvy homebuyers.

Each manufacturer may have a different label, but one that stands out is the Energy Star designation. The Environmental Protection Agency (EPA) created the Energy Star logo as the symbol for energy efficiency because of the direct link between wasted energy and air pollution. Manufacturers and builders voluntarily display the logo on products and new homes that meet or exceed high energy efficiency guidelines. Some of these everyday products include heaters, air conditioning units, household appliances, residential light fixtures, and new homes. The Manufactured Housing industry is proud to display this designation on its quality homes.

By implementing these standards into the construction of today’s manufactured home, consumers and builders alike can reap the benefits of energy efficient housing solutions, further emphasizing a manufactured home is not any different when it comes to energy efficiency. Manufacturers who utilize energy efficient light fixtures and appliances show that they are doing their part to help preserve and protect our precious natural resources, while offering the consumer significant savings on their utility bills. Combined with an almost 30% savings on heating, cooling and hot water, manufacturers make it possible for the consumer to afford more home, due to the lower cost per square foot that is inherent to the factory construction process.

Another advantage of today’s energy efficient manufactured home is the tight construction that helps reduce levels of indoor pollutants, such as dust, mold, carbon monoxide, radon gas and pollen. Proper ventilation helps prevent the accumulation of unhealthy air and humidity within the home. Tight construction also means less maintenance is required, and the more money the consumer saves.

Energy experts agree that energy efficient homes are the only home choice today. Energy efficient dual-pane windows not only minimize heating and cooling loss, they also help protect the interior and contents from sun fading. With less energy loss, heating and cooling equipment performs more efficiently, maximizing its life span. The temperature inside is also more easily controlled and maintained while noise levels from outside sources are reduced to comfortable levels.

12:43 PM - Sep. 11, 2009 - comments {0} - post comment

Consider a stock secured loan

This article is by Joel Greene, mortgage broker and President of Condo Hotel Center.

With real estate values continuing their nosedive to astounding new lows, the one thing that prevents investors from taking advantage of the great buying opportunities is the scarcity of money.

Despite their federal bailout, banks still aren’t ready to open up the cash tap.

Most borrowers won’t meet the more severe regulations imposed by Fannie Mae and Freddie Mac. 

Home equity loans, with all their complex paperwork and extra costs have lost their appeal.  Plus, with today’s deflated values, these loans aren’t an option for most home owners.

Investors don’t want to secure private funds if it means paying 10-12 up front points or high interest rates. 

Even wealthy individuals who want to leverage what they have can’t get loans, despite their cash reserves. 

So how can investors get financing for real estate when it’s as elusive as Big Foot?

Stock-secured loans.  This new financing option is rapidly gaining popularity.  It lets borrowers use their stocks or other securities, (mutual funds, CD’s, bonds or treasury notes), as collateral for loans, up to 85% loan-to-value in some cases. 

Part of their appeal is that the process for obtaining these loans is surprisingly simple.  The real estate being purchased does not need to be appraised.  The borrower doesn’t have to furnish lots of documentation (tax returns, employment records, etc.).  And no credit checks are done.  The only thing required is a stock or securities portfolio to use as collateral.

Best of all, borrowers don’t have to liquidate any of their holdings, a real plus since values right now are at record lows.  They simply use their securities as collateral, even as those holdings continue to grow!

While most people seek stock-secured loans to purchase real estate, they also can be used for almost any other purpose, from paying for college to financing an overseas trip, a new business or even a yacht.  Again, if the borrower has stocks or securities, they most likely can be tapped for money right now.

For that reason, stock-secured loans even work for people who want to purchase homes but won’t qualify for traditional financing, either because they lack cash for a down payment, have poor credit, don’t have a job or have past foreclosures or bankruptcies in their past.

Borrowers can obtain stock-secured loans ranging from $50,000 to $200 million.  Currently, interest rates start at 4.99%, interest only.  Terms are typically 2-7 years. 

At the end of the term, a balloon payment of the loan’s balance is due.  The borrower then can do any of the following:  a) refinance the loan, b) sell the stocks pledged as collateral to repay the loan, or c) walk away from the shares pledged as collateral.  No matter which option is chosen, there is no recourse, and the loan is considered paid off.

In today’s tight-credit economy, stock-collateralized loans offer a viable alternative and are certainly an option worth considering for anyone seeking to invest in real estate or other major purchase.

6:30 PM - Sep. 5, 2009 - comments {0} - post comment

Green remodeling

This article is fromFront Range Inspection.

As homeowners consider health issues, skyrocketing energy costs and Earth's natural resources. Green remodeling may increase the value of your home. The driving force behind green remodeling is energy conservation. The average home today uses systems for heating, ventilation and air conditioning, and some homes were not built as efficiently as they could have been, resulting in high energy consumption. The U.S. Department of Energy believes if current buildings were green-improved, they would use $20 billion less in energy per year. Green remodeling puts a strong emphasis on making homes as efficient as possible with modifications such as energy-efficient appliances and programmable thermostats. There are many sources that contribute to the air quality inside a home, including: pollutants brought in from the outside, toxic chemicals existing inside the home, and the activities of the occupants. Major contributors are tobacco smoke; smoke from the burning of wood, coal, kerosene or other such substances; toxic fumes from sealants or chemicals from cleaning products; lead paint; asbestos from insulation; damp carpets or fabrics; and certain pressed-wood furniture products that release chemicals into the air. Green remodeling seeks to remedy these problems with things such as better ventilation systems and using wood, paint, and sealants that are nontoxic. Reduced material waste and resource conservation. When remodeling a home, there is often a large amount of construction waste. Because 85 - 90% of those materials can be recycled, green remodeling focuses on reducing this waste during remodeling and reusing materials whenever possible. Some of the methods are using local materials, building with engineered lumber, and using recycling companies to remove waste are all ways this can be achieved during remodeling.

The benefits of green remodeling include:
-Reduces operating costs by increasing efficiency
- Conserves natural resources
- Non Toxic paints and sealants
- Improves indoor air quality
- Reduces waste
 

2:07 PM - Sep. 1, 2009 - comments {0} - post comment

Making your lawn look good

hese ideas are from Briggs & Stratton - makers of lawn mowing equipment.

With record low mortgage rates, expanded FHA loans and tax credit incentives, many Americans have plunged into first-time home ownership. In fact, the National Association of Realtors reports that first-time buyers accounted for 29 percent of existing home sales in the last month. But while taking advantage of the current incentives, many first-time buyers don’t think of everything that comes along with home ownership - including how to take care of their yard so they remain rightfully proud of their new castle.

Briggs & Stratton Corp., a leading manufacturer of lawn mower engines, offers these lawn care tips for even the most challenged green thumb.

Choose the right mower.
Purchase a mower with a quality engine. Elements to consider are torque, emissions and ease in starting. Briggs & Stratton engines are found in eight of the top 10 selling lawn mowers brands. To understand more about why engines make a difference, visit www.enginesmatter.com.

Never cut more than one-third of the grass blade during any one mowing.
By following this rule, the remaining two-thirds of the plant will develop deep roots and spread out, eventually creating a dense, healthy turf. Using this technique, of course, means shorter intervals between mowings during high growth times, but a healthy lawn is the best medicine for preventing weeds and disease.

Alternate your mowing pattern.
Try not to follow the same path each time you mow. Think of a clock. Start at the 12 o’clock position and mow to the 6 o’clock position. The next time you mow, begin at the 9 o’clock position and mow to the to 3 o’clock position. The third time, mow from 1 o’clock to 7 o’clock, etc. Changing the mowing pattern every time you mow will keep the turf and soil from compacting and prevent wheel patterns in your lawn.

Water early in the day.
Watering between 4 and 9 a.m. helps ensure that the sun won’t rob moisture from your lawn. It also gives your lawn the best chance to dry in the morning. Wet grass at night can lead to disease. Most lawns need about 1-2 inches of water a week to stay healthy.

Avoid a fertilizer overdose.
Even good medicine causes harm when used improperly, so avoid doubling the recommended rates of fertilizer as well as seed, herbicide, insecticide, etc. One pound of water-soluble nitrogen per 1,000 square feet is the maximum amount established lawns should receive at one time.

1:45 PM - Aug. 30, 2009 - comments {0} - post comment

Selling your home in a foreclosure driven market

This article is by Relocation.com

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.

6:46 PM - Aug. 24, 2009 - comments {0} - post comment

Navigating today's markets

This article is by theCMPS Institute.

”There are five distinct strategies that can help home owners, buyers, and sellers successfully navigate today’s turbulent mortgage and housing markets,” said Gibran Nicholas, chairman of the CMPS Institute, an organization that certifies mortgage bankers and brokers.

1. Understand and Utilize the New Tax Credits. Many home owners are not aware that the latest government stimulus package gives them a special tax credit of up to $1,500 for making certain home improvements. Also, if you are buying a primary home and you have not owned a primary residence in the last 3 years, you may qualify for the new $8,000 first-time-homebuyer tax credit. “Although you can’t use the credit to help with your down payment, the credit can be claimed on your 2008 tax returns if you buy the home in 2009,” Nicholas said. “This means that even if you buy the home after you file your taxes on April 15, you can simply file an amended 2008 tax return and the IRS will send you a refund check for $8,000.”

2. Consider Paying Points for Your Mortgage Transaction. Mortgage “points” are upfront fees that you pay in order to lower your mortgage interest rate. One point is equal to 1% of the loan amount. “In the past, it almost never made sense to pay points in most situations where you were refinancing your mortgage,” Nicholas said. “However, enormous changes have taken place in the mortgage securitization process. Wall Street investors are demanding higher upfront fees for borrowers with credit scores below 740, and mortgage lenders don’t have as much flexibility when pricing loans. This means that the interest rate savings can be very significant when you pay upfront points.”

“If you are buying a home, negotiate into your purchase contract for the seller to pay points on your behalf,” Nicholas said. “In addition to the significant interest and payment savings you will enjoy, you will also receive a tax deduction this year for points paid by the seller on your behalf. If you are selling a home, offer to pay points for potential buyers as part of your marketing efforts. This will make your home more affordable for potential buyers and help your listing stand out from the glut of available inventory in today’s market.”

3. Carefully Structure Your Real Estate Short Sale Transaction. A real estate short sale is when a home owner sells their property for less than what they owe on the mortgage, and the lender gives their permission to do this by forgiving the difference and/or releasing the mortgage lien on the property. “Short sales are very common in many markets because of negative home owner equity due to the steep decline in house values,” Nicholas said.

“If you are selling your home as part of a short sale transaction, make sure to negotiate for a release and full satisfaction of the mortgage from your lender. Depending on the laws of your state and your individual circumstances, lenders may be able to wait a year or two for you to improve your financial situation, and then file a deficiency judgment against you to try and recover the money that you still owe them. The only way for you to avoid this risk is to have the lender not only release the mortgage lien, but also agree in writing to a full satisfaction of the mortgage.”

If you are a buying a home as part of a short sale, Nicholas advises you to take steps to make sure the deal is closeable. “It is estimated that approximately 30% of short sale listings are not closeable deals because the lender simply won’t approve it. In most of these cases that aren’t closeable, the first or second mortgage lender is expecting home sellers that have money to contribute something to the deal. One way to avoid getting caught up in the middle of this is to have your Realtor verify the status of the seller’s hardship package with their lender.”

4. Utilize the Special Options Available for Seniors Age 62 or Older. “If you are 62 or older, you could use a reverse mortgage to buy a new home without making any monthly mortgage payments,” Nicholas said. “This is a fantastic opportunity if you are contemplating a move but are worried about trying to sell your current home into a down market. Additionally, reverse mortgages can be used to supplement your retirement income that may be declining due to unfavorable economic or financial market conditions.”

5. Carefully Interview Your Mortgage Professional. With all the noise, confusion, fear and misinformation in today’s market, it is more important than ever for you to work with a Certified Mortgage Planning Specialist who has the training and experience to guide you through the home buying or refinancing process. The largest financial transaction of your life is far too important to place into the hands of someone who is not capable of advising you properly and troubleshooting the issues that may arise along the way.

6:42 PM - Aug. 22, 2009 - comments {0} - post comment

Who does your inspection belong to?

This article is by Carl Brahe, owner of Inspection Perfection

The current economic environment has caused business to go two ways with customer service. It has gotten really good or really bad. In many retail establishments every customer brings multiple employees offering help where a year ago it was nearly impossible to find an employee, and even harder to find one who was willing to help. In other businesses customer service has become totally nonexistent.  

The same situation is occurring with property inspections. Stories of cut-rate, low quality inspections are common. In one instance an inspector quoted a low rate, but showed up without a camera. When asked about pictures he informed his client that photos were $100 extra. For the extra fee he  took pictures using a cell phone. I observed an inspector conducting an inspection without a tool belt or box, no camera nor computer. His only tools seemed to be a clip board and a flashlight. Other inspectors are working extra hard to please clients.

A Denver area real estate agent relates: “I had an instance of an Inspector (chosen by the buyer) who arrived at the residence and after the client spent about 20 minutes shadowing his inspection and asking specific questions about some questionable aspects of the home, he asked if she would leave him alone and wait for his report.  A first time buyer and intimidated by the thought that some serious things could be wrong with the property, she did what she was told. 

When it came to obtaining the report, we waited a few days and the Inspector faxed one copy to the buyer.  When the buyer and I called to have him explain a few things, he was too busy.  When I called to request my own copy, I was told that he didn't keep his records and I'd have to get it from the buyer.  Subsequently, issues with leaks in the water pipes had to be discovered and resolved late enough into the process that the buyer's earnest money was at stake.”

There are many articles to guide residential and commercial buyers in hiring an inspector. In practice, they tend to find you the best salesperson, not the best inspector. All have lists of questions to ask potential inspectors; questions about education, background, experience, but they never suggest the most important question of all. The question never asked is: “Who do you work for?”

Many answers to this question might be offered. Ask anyone who provides you with goods or services, and almost no one will give the only correct answer: “I work for you.” All economic activity occurs because a person or company has a need or desire and sufficient economic power to pay for it. All workers in all phases of all design, production, promotion, delivery and service work for the end consumer. The simple fact of economics is: All economic activity exists to serve the consumer.

6:22 PM - Aug. 20, 2009 - comments {0} - post comment

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