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

Swine flu facts

Since it first emerged in April, the global swine flu epidemic has sickened more than 1 million Americans and killed about 500. It's also spread around the world, infecting tens of thousands and killing nearly 2,000.

This summer, the virus has been surprisingly tenacious in the U.S., refusing to fade away as flu viruses usually do. And health officials predict a surge of cases this fall, perhaps very soon as schools reopen.

A White House report from an expert panel suggests that from 30 percent to half the population could catch swine flu during the course of this pandemic and that from 30,000 to 90,000 could die.

So how worried should you be and how do you prepare? The Associated Press has tried to boil down the mass of information into 10 things you should know to be flu-savvy.

1. No cause for panic.

So far, swine flu isn't much more threatening than regular seasonal flu.

During the few months of this new flu's existence, hospitalizations and deaths from it seem to be lower than the average seen for seasonal flu, and the virus hasn't dramatically mutated. That's what health officials have observed in the Southern Hemisphere where flu season is now winding down.

Still, more people are susceptible to swine flu and U.S. health officials are worried because it hung in so firmly here during the summer — a time of year the flu usually goes away.

2. Virus tougher on some.

Swine flu is more of a threat to certain groups — children under 2, pregnant women, people with health problems like asthma, diabetes and heart disease. Teens and young adults are also more vulnerable to swine flu.

Ordinary, seasonal flu hits older people the hardest, but not swine flu. Scientists think older people may have some immunity from exposure years earlier to viruses similar to swine flu.

3. Wash your hands often and long.

Like seasonal flu, swine flu spreads through the coughs and sneezes of people who are sick. Emphasize to children that they should wash with soap and water long enough to finish singing the alphabet song, "Now I know my ABC's..." Also use alcohol-based hand sanitizers.

4. Get the kids vaccinated.

These groups should be first in line for swine flu shots, especially if vaccine supplies are limited — people 6 months to 24 years old, pregnant women, health care workers.

Also a priority: Parents and caregivers of infants, people with those high-risk medical conditions previously noted.

5. Get your shots early.

Millions of swine flu shots should be available by October. If you are in one of the priority groups, try to get your shot as early as possible.

Check with your doctor or local or state health department about where to do this. Many children should be able to get vaccinated at school. Permission forms will be sent home in advance.

6. Immunity takes awhile.

Even those first in line for shots won't have immunity until around Thanksgiving.

That's because it's likely to take two shots, given three weeks apart, to provide protection. And it takes a week or two after the last shot for the vaccine to take full effect.

The regular seasonal flu shot should be widely available in September. People over 50 are urged to be among the first to get that shot.

7. Vaccines are being tested.

Health officials presume the swine flu vaccine is safe and effective, but they're testing it to make sure.

The federal government has begun studies in eight cities across the country to assess its effectiveness and figure out the best dose. Vaccine makers are doing their own tests as well.

8. Help! Surrounded by swine flu.

If an outbreak of swine flu hits your area before you're vaccinated, be extra cautious.

Stay away from public gathering places like malls, sports events and churches. Try to keep your distance from people in general. Keep washing those hands and keep your hands away from your eyes, nose and mouth.

9. What if you get sick?

If you have other health problems or are pregnant and develop flu-like symptoms, call your doctor right away. You may be prescribed Tamiflu or Relenza. These drugs can reduce the severity of swine flu if taken right after symptoms start.

If you develop breathing problems (rapid breathing for kids), pain in your chest, constant vomiting or a fever that keeps rising, go to an emergency room.

Most people, though, should just stay home and rest. Cough into your elbow or shoulder. Stay home for at least 24 hours after your fever breaks. Fluids and pain relievers like Tylenol can help with achiness and fever. Always check with a doctor before giving children any medicines. Adult cold and flu remedies are not for them.

10. No swine flu from barbecue.

You can't catch swine flu from pork — or poultry either (even though it recently turned up in turkeys in Chile). Swine flu is not spread by handling meat, whether it's raw or cooked.

5:22 PM - Oct. 17, 2009 - comments {0} - post comment

Sitting on the tarmac

Earlier this year, a Continental Airlines flight stranded passengers on the tarmac for 6 hours. A couple weeks after that, passengers on a Sun Country flight also sat on the tarmac for a grueling 6 hours.

• Notify passengers of known flight delays and cancellations
• Meet customers' essential needs during long on-aircraft delays
• Allow reservations to be held or tickets to be refunded within 24 hours of purchase
• Be more responsive to customer complaints

5:11 PM - Oct. 15, 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

Separation anxiety for pets

This article is by Purina Pet Care.

Back-to-school time creates a dramatic shift in family schedules, which can have a devastating impact on family pets that have spent more time with their owners over the summer vacation season.

PurinaCare Pet Health Insurance, which is committed to helping pet owners provide a lifetime of care for their pets, is urging all pet owners to be aware of the signs of post-summer separation anxiety in both dogs and cats. Pets suffering from post-summer stress can exhibit a wide range of abnormal behaviors as families return to school and work.

Signs of Post-Summer Separation Anxiety include:

-Hyper-salivation or drooling
-Soiling the pet owner’s belongings
-Chewing or scratching at doors or crate
-Non-stop howling, barking, meowing
-Compulsive grooming or licking
-Tearing up furniture or pushing items off counters

“Dogs are naturally social animals and especially sensitive to loneliness this time of year. The family fills the role of ‘the pack’ and in their absence; dogs can feel abandoned and become quite destructive,” says Dr. Bill Craig, DVM, Chief Medical and Underwriting Director of PurinaCare Pet Health Insurance. “Teaching dogs that their owners will return and the ‘pack’ will be reunited is the key to alleviating the stress of post-summer separation anxiety.”

Prepare your Pet for Post-Summer Routines:

-Wean them into new post-summer schedule. Give positive reinforcement with praise and treats for appropriate behavior
-Resume normal leash/walking schedules
-Take the drama out of leaving- grab your coat and keys at times when you are not leaving so your pet doesn’t connect the action with being alone
-Create a pet safe haven- a well-lit area where the family “pack” normally gathers, keep the TV or radio running, leave plenty of toys and safe clothing/items with family scents on them
-Don’t punish bad behavior related to anxiety; it will only reinforce the stress
-For pets with severe stress, medications are available. They will rarely work alone without a behavior modification regimen. A veterinarian must prescribe these drugs.

11:21 AM - Oct. 11, 2009 - comments {0} - post comment

Ways to save money

This article is by Katie Adams at Yahoo Finance.

While the media can't decide if the recession is nearing its end or not, we do know that there hasn't been a tremendous surge in wages, job creation or the stock market. Consequently, most of us are staying pretty conservative on our spending. Here are a few relatively simple ways to keep an eye on your pennies while you're waiting for that brighter economic future to arrive.

1. Schedule automatic payments. Have (at least) your fixed monthly bills paid automatically to avoid missing a payment and having to fork over extra money for late fees and/or interest. You can set up auto pay features through your bank's online bill paying service or by arranging it directly with the company or service provider.

2. Eat your groceries. Did you know that Americans regularly throw away nearly 15% of the food they buy at the grocery store each year? That can add up to hundreds or, depending on your supermarket budget, thousands of dollars each year. Save money by actually eating what you buy. Not sure how? Bypass the bookstore and borrow a cookbook from the library!

3. Bundle services. If you're paying different vendors for similar services you may be overpaying. Call your communications providers to see what price you'll be quoted if you switch and bundle your internet, phone and cable TV services.

4. Pay off credit card. If you're not paying off your credit card balance each month you're paying interest and, for most Americans, it's a pretty steep rate. Pay it off and you could save a tidy sum by eliminating your interest charges.

5. Mark your calendar. Whenever you rent something - library books, videos, etc. – mark it on your calendar and save money by avoiding those quickly mounting late fees. Many stores and libraries also now offer email reminders to help the constantly harried so sign up for the extra help!

6. File your taxes on time. Or if you need to file an extension at least pay what you owe on the due date. You'll avoid annoying notices from the IRS and, more importantly, save on penalties, fees and interest.

7. Roll it over. If you're switching jobs and you can't leave your 401(k) invested with your current company, roll your 401(k) into either your new employer's 401(k) or an IRA within the 60-day window instead of withdrawing the money. By doing so you'll keep the money invested -  and earning interest - and avoid those nasty taxes as well as the additional 10% penalty.

8. Switch credit cards. If you're carrying a balance on a high interest rate credit card check out other card issuers to see if you could transfer your balance to one with a lower interest rate and fewer fees. Use sites like Creditcard.com or Bankrate.com to compare card rates, and pay careful attention to how long those terms last so you don't wind up paying a higher rate and erasing any potential savings.

9. Use your privileges. Are you an AAA member? Do you belong to the AARP? What about your local credit union? Check organizations you have memberships with to see if they offer buying privileges or discounts.

10. Rent instead of buy. You might be excited to expand your driveway but don't let your enthusiasm overtake good sense. Hold off on buying that jackhammer and think before you spend on big-ticket items or items that you'll use once or infrequently (like movies and books).

11. Buy instead of rent.  Don't pay the exorbitantly high prices charged by rent-a-center type stores for items you'll use regularly and keep long-term like computers, furniture and appliances. 

12. Ask. That's right, just ask. You can't be paying any more than you currently are, so why not ask if you can get the interest rate lowered on your credit cards or loans? Also, ask for a discount on services like your wireless phone, trash removal or pet care instead of switching to another vendor, and of course ask "is that the best you can do" on any big ticket purchases like cars, appliances and furniture.

In a tight economy it might be worth the seller's while to cut the price instead of losing the sale, and you'll both benefit in the end!

13. Just say no. To the extended warranty that is. They hardly ever make financial sense. Weigh the repair or replacement cost (and if you would even need or want to repair or replace it down the road) against the cost of the warranty and graciously pass when offered. 

14. Have the awkward conversation. Americans average more than $750 yearly on holiday gifts and that's probably much more than most would like to spend. If your gift-giving is costing you more than you can realistically afford there's a good chance it’s more than your relatives can afford (or would like to spend) as well. Take the plunge and broach the subject. Offer a more reasonable alternative (say, limit giving to children or put a dollar amount on gifts per person). More than likely your relatives will be grateful SOMEONE finally raised the subject and you’ll save money in the process.

15. Eat at home.  If the idea of cooking for yourself seems like too much work at least opt for take-out instead of dining out - you'll save on the tip, the alcohol and most likely the cost for appetizers or dessert.

16. Balance your checkbook. It might take a few minutes but it's something you should be doing anyway and it can pay off huge dividends by helping you avoid bouncing a check and incurring steep overdraft fees (not to mention a little embarrassment)!

17. Stick with your bank. When withdrawing cash drive or walk the extra minute it takes to use your bank's ATM and avoid the fee that could come with another bank's machine. Better yet - switch to a bank that doesn't charge fees!

18. Use your TV. If you're paying for cable why not use all of it - and save some money in the process? Cancel the video membership and watch movies through cable movie packages you're already paying for or check out your free "on demand" shows. Drop the gym membership and work out at home to channels like FitTV, and bag the magazine subscriptions and watch the same shows (like Martha Stewart) on TV instead.

19. Quit those bad habits.  Smoking, overeating and drinking are costly habits to maintain. Okay - this is the "lazy" way to save, not necessarily the easy way. But you can save boatloads of money in two ways by saying sayonara to your favorite vices: (1) You'll save money by cutting out on the regular spending it's costing you, and (2) you'll probably save on insurance premiums and long-term health costs. It's the ultimate win-win.

20. Forget the pet.  Sure it sounds heartless but did you realize that welcoming home a little Fido can cost you an average of more than $1,500 a year - or $15,000 over 10 years? Feline fluffies are pricey too - just under $1,000 a year or approximately $9,000 for 10 years of care. Looking at the long-term picture, that's a new car or the down payment on a home! Keep walking right past that pet store and keep the money in your pocket instead.

The recession won't last forever, but in the meantime take advantage of these lazy ways to stay on track financially, and develop some pretty good money management habits for the future!

11:15 AM - Oct. 9, 2009 - comments {0} - post comment

Six figure jobs

Getting paid a six-figure income in today's job market is pretty tough, but maybe you're looking in the wrong fields. According to the U.S. Bureau of Labor Statistics' Occupational Employment and Wage Estimates, which are compiled from 2008 data, the six-figure salaries for the following careers just might surprise you.

Human Resources Manager – Top 10% Minimum Annual Income: $163,220; Average Annual Income: $103,920 Top-Paying State: Delaware.

Astronomer – Top 10% Minimum Annual Income: $156,720; Average Annual Income: $99,730; Top-Paying State: Maryland.

Art Director – Top 10% Minimum Annual Income: $154,840; Average Annual Income: $88,510; Top-Paying State: New York.

Pharmacist – Top 10% Minimum Annual Income: $131,440; Average Annual Income: $104,260; Top-Paying State: California.

Film or Video Editor – Top 10% Minimum Annual Income: $112,410; Average Annual Income: $62,500; Top-Paying State: Massachusetts.

Forbes Magazine also recently listed more surprising six-figure income jobs that do not require a college degree, which include, Air Traffic Controller (income for the 90th percentile: $186,000; 75th percentile income: $156,000); Court Reporter (income for the 90th percentile: $104,000; 75th percentile income: $84,100); Hotel Executive Chef (income for the 90th percentile: $107,000; 75th percentile income: $86,500); and Ultrasound Technologist (income for the 90th percentile: $110,000; 75th percentile income: $82,500).

1:59 PM - Oct. 7, 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

Men really ARE from Mars

This article is by Diann Patton of Coldwell Banker.

It often seems as though men and women are from different planets, but every day millions of couples navigate through day-to-day and even life-altering decisions. Because a home is the biggest purchase most people will make in their lifetime, Coldwell Banker Real Estate LLC surveyed 1,000 individuals to discover how much men and women differ in the home-buying process.

The real estate company engaged a third-party research firm, International Communications Research (ICR), to delve into the innerpsyche of men and women, asking questions such as “How long did it take for you to know that the last home you purchased was right for you?” and “If you found the home of your dreams but had concerns about its security, would you still be interested?” Coldwell Banker Real Estate also surveyed couples on additional topics, such as “Who wears the pants in the relationship?” when it comes to making major financial decisions.

“The results were surprising,” said Diann Patton, the Coldwell Banker consumer real estate expert. “Not only did we uncover some of the inherent differences between men and women, but we also pinpointed a number of ways that the two genders are actually the same. For example, both men and women are increasingly concerned with having a space to work in their homes- something we would not have seen 40 years ago.” Patton continued, “We also found that feeling insecure about a home’s safety is a deal-breaker for most people, regardless of gender.”

Patton noted this topic is particularly timely given that many first-time homebuyers are hoping to take advantage of the $8,000 tax credit before it expires on December 1, 2009.

Below are some key highlights from the Coldwell Banker Real Estate study:

Women may be inclined to make up their mind more quickly than men.
-When asked how long it took before they knew their home was “right” for them, almost 70% of women had made up their mind the day they walked into the house, vs. 62% of men. Conversely, significantly more men needed two or more visits: (32% of men vs. 23% of women).

Women would rather live closer to their extended family than to their job.
-55 percent of women find it more important to be closer to their extended family (those that do not live in their household) than to their job, compared to only 37% of men.

A home’s security is a deal-breaker for both men and women.
-64 percent of women said that if they found the home of their dreams but had concerns about its security, they would no longer be interested. More than half of men agreed (51%).

Couples say that no one “wears the pants in the relationship” in terms of major financial decisions.
-When asked who wears the pants in the relationship (when it comes to major financial decisions, such as purchasing a home), almost 70% of respondents living with their significant other said it’s actually mutual.
-However, 23% think that they, themselves, wear the pants in the relationship, not their partner. More men than women said this (26% vs. 20%, respectively).

Men and women agree on how they would use a spare room, for the most part.
When the respondents were asked how they would use an extra 12 x 12 room if it could be anything they wanted, men and women agreed on the top three most popular, and very practical, responses:

-Bedroom: 25%
-Office/Study: 15%
-Family Room / Den: 11%

However, men really do want a “Man Cave.”
-Interestingly, out of the 8% who indicated they would turn that spare room into an entertainment center, it was a preponderance of men leading the charge. In fact, four times as many men as women said they would use the extra space for recreation / entertainment.

1:29 PM - Oct. 3, 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

How the First Time Homebuyer Tax Credit Works

This article is by Kimbrough Gray. Ki has sold Austin real estate for almost 10 years.

There is a provision in the Housing and Economic Recovery Act of 2008 that allows first time home buyers the ability to receive a credit on their taxes of up to $7,500 for purchasing a home. There is also a provision in the American Recovery and Reinvestment Act of 2009 that expands this tax credit for qualified first time home owners. The provision is called the first-time homebuyer credit.

The 2008 first-time homebuyer credit was created to infuse the slumping housing market, and is treated like an interest-free loan. Qualified participants were required to repay the loan interest-free over a period of 15 years, making 15 equal annual payments. You can find more details about this tax credit on the IRS website.

The provision in the American Recovery and Reinvestment Act of 2009 increased the first-time homebuyer tax credit to $8,000 for purchases made January 1 - November 30, 2009. In contrast to the 2008 tax credit, new home owners do not have to repay the credit as long as they do not sell their home within three years of closing on the home.

You need to be armed with the facts before you go to purchase a home on the assumption that you'll receive the credit. The following FAQs will help you navigate through the quagmire of confusion that has surrounded this tax credit.

* Who is eligible? Taxpayers who have not owned a home within the U.S. three years prior to purchasing a new or resale home in the United States. The closing and transfer of title on the home must be completed between April 9 and December 31, 2008 for the 2008 credit, and between January 1, 2009 and November 30, 2009 for the 2009 credit.

* What is the amount of credit? The credit allows for 10 percent of the purchase price. The maximum credit is $7,500 for 2008 and $8,000 for 2009.

* Are there income limits? Income limits are $75,000 for a single filer and $150,000 for a couple filing jointly. The IRS bases the credit on your modified adjusted gross income (MAGI). Your MAGI equals your adjusted gross income (AGI) plus IRA contribution deductions, foreign housing deductions, student loan deductions, higher education expense deductions and foreign income. Partial credit is available to some with higher MAGI.

* Does my home qualify? The home qualifies if it is the taxpayer's principal residence, is located within the U.S. and purchased between April 9, 2008 through July 1, 2009 for the 2008 tax credit, and January 1, 2008 through November 30, 2009 for the 2009 tax credit. For new construction, the date you actually occupy the residence will be considered the purchase date.

* What if I don't owe taxes or I'm exempt from filing? It doesn't matter. The credit applies to qualified applicants regardless of filing requirements, even to those who do not owe taxes or are exempt from filing. You may file solely to claim the first-time home buyer credit.

* How do I claim the credit? Although you are not required to claim the credit, you may do so by filing a Form 5405. You'll need to file the form with the applicable 2008 or 2009 federal income tax return.

* Does the tax credit act as a tax deduction? No. A tax deduction only diminishes the amount of income taxed. For instance, if the taxpayer's AGI is $40,000, then a deduction would reduce the amount taxed by $8,000, depending on the amount of applicable credit. The taxpayer would be taxed on the remaining amount of $32,000. Instead, the credit is directly deducted from what the taxpayer owes the government. If the taxpayer owes $2,000 to the IRS, then $6,000 would be the amount refunded to the taxpayer. If the taxpayer owes nothing, then the entire $8,000 would be refunded, depending on the applicable credit.

12:39 PM - Sep. 29, 2009 - comments {0} - post comment

Fannie Mae affects corporate relocations

This article is by Peg Guinta, CRP, Projects Director for RISMedia’s RIS Consulting Group.

 

Because of changes announced in June by Fannie Mae (FNMA), the largest mortgage purchaser in the country, transferring families’ purchasing power could be significantly impacted.

FNMA’s June 8th Announcement cites it will now disallow inclusion of secondary wage earner’s projected income in loan qualifying income ratios. Fannie Mae has in the past allowed “trailing secondary wage earner income” when determining housing affordability prior to a spouse or partner securing a position in the new location, but has now eliminated this policy.

Dual income families comprise about 70% of all corporate transfers so FNMA’s policy change may impact affordability for many whether purchasing or selling in corporate neighborhoods. For dual income families who rely on both a primary and secondary income to maintain lifestyle, securing employment at the new location in this economy may prove especially challenging.

Previous to this ruling, real estate agents and corporate administrators alike have seen many effects of this market: declining transfer acceptances, sluggish home sales, tightened mortgage lending and lengthier stays in temporary housing. Fannie Mae’s new policy may only reinforce these scenarios for certain corporate transfer populations.

To maintain mobility goals corporations must align relocation policy support with transferring family needs while keeping company objectives in mind. Employers should reevaluate relocation policy assistance periodically - especially when significant market changes in housing and mortgage markets occur, but not all do.

How can real estate agents support transferees’ buying and selling strategies?

Real estate agents are in an influential position in both the early inbound or outbound relocation phases and can help prepare transferring families for smoother passage ahead.

For corporate buyers, awareness and preparation are key:
• determine if your client is affected by the ruling and create awareness of its potential impact during pre-decision or familiarization trips to the new location
• if not already required by employers, urge mortgage preapproval prior to actual house hunting activities
• if not already provided by employers refer spouses/partners to employment assistance counselors and recruitment offices early in the process.
• research alternate lending sources having the ability to portfolio loans or sell to other investors.

For corporate sellers support may mean enhancements for their dual income buyer prospects. Agents’ price opinions and market reports should indicate if potential prospects are likely to be inbound corporate transfers who could potentially benefit by seller-provided incentives.

Appropriate marketing strategies in support of these buyer profiles could include assistance or incentives such as a:
• temporary mortgage rate buy down
• portion of buyer’s closing costs
• credit for first three mortgage payments.

While these seller-assisted incentives won’t change FNMA guidelines, it may attract buyers’ attention while offering a bridge of support until ‘trailing’ income materializes.

Some corporate employers already provide this type of assistance within home sale assistance policies, but many are not yet tuned into supporting seller-offered financial incentives for home selling transferees. In a market of multi-tiered challenges employers may be more receptive to allowing certain exceptions to support sales opportunities and perhaps also avoid another inventory property.

12:19 PM - Sep. 27, 2009 - comments {0} - post comment

8 tips to improve your computer's performance

1. Purchase a Quality Antivirus Program: When you purchase antivirus software, it is important to make sure that, in addition to virus protection, it also protects against spyware and adware. While viruses have the ability to wipe out a computer, the spyware and adware can slow your machine to a snail's pace and compromise your personal information. Be sure to keep your software current by downloading any updates. Also, remember to renew your subscription every year.

2. Perform Your Windows Updates: Your computer will periodically instruct you that there are available Windows updates. It is important to perform these updates, as many will pertain to both computer security and overall operations. You can also set Windows to automatically update for you.

3. Use Your Windows Firewall: Newer versions of Microsoft Windows (including most versions available in the last 10 years) come equipped with a personal firewall, which can protect your personal network from any outside networks. But it only works if it is turned on. On newer versions of Windows, you can access your firewall settings by clicking the "Start" menu, selecting "Control Panel" and then selecting "Security Center".
   
   For older versions, you can click the "Start" menu. Now click the "Run" button (or type run in the Start Search field). When the run window appears, type firewall.cpl and click "OK." The firewall settings are under the "General" tab.

4. Make Sure You Have Plenty of RAM: Not to be confused with hard drive space, RAM is the memory your computer uses to run programs and data for files you are currently working on. If you run more programs than your computer's RAM can handle at one time, it will run more slowly as the programs compete for RAM. To fix the problem, you don't necessarily need to purchase a whole new computer. Instead, try purchasing more RAM from a local computer store.

5. Uninstall Any Unused Programs: Now that you've learned about the importance of RAM, you can understand why it's crucial to keep only the programs you use. To delete any unused programs, click "Start" and then click on "Control Panel." Find the icon that says "Add or Remove Programs," and click it on. Scroll down to find the appropriate program, and have it removed. Your computer will prompt you with instructions.

6. Perform Regular Housecleaning: Regularly deleting your temporary Internet files, cookies, and Internet history will do wonders for maintaining a quick and clean PC. To do so, click "Tools" on the taskbar of your Internet browser. Scroll down and click on "Internet Options." From there, select what you would like to delete. Another bit of housekeeping you should regularly perform is emptying your trash bin.

7. Defragment (Defrag) Your Hard Drive: Defragmenting your hard drive may be the single best thing you can do to keep your computer running optimally. As you add programs and data to your computer, the information in question takes up blocks of actual physical space on the hard drive. Whenever one of those blocks is deleted, a blank space is created. By defragmenting your computer, you remove the blank spaces and create a more efficient pathway.
   
   In order to perform a "defrag" on your hard drive, start by double-clicking your "My Computer" icon. Next, right-click on the "C-Drive" option. Click "Properties," "Tools," and then "Defragment Now." Depending on how fragmented your computer's hard drive is, some system defrags can take several hours - and during that time, you cannot use your computer.

8. Use an Email Service with a Good Spam Filter: The ability for an email service to effectively filter out insidious spam emails is highly important when it comes to minimizing your risk. In addition to regularly cleaning out your email spam file, you should also never give personal information via an email.

12:16 PM - Sep. 25, 2009 - comments {0} - post comment

Time to get organized

 This article is by Allison Carter who is the Chief Executive Organizer and owner of The Professional Organizer.

It happens to the best of us. We're so busy with our summer events and daily to-do lists that things get a little out of place and out of hand. Before you know it, summer's over–and the unresolved clutter from one season starts spilling over into the next.

Preventing this problem is easier said than done. Being organized takes time and energy. And if you haven't done it in a while, it can leave you wondering where you should start and how to get through it.

That's where the advice from a professional comes in. So to help you tackle even the toughest organizational challenges, we interviewed Allison Carter, Chief Executive Organizer and owner of The Professional Organizer, a company that trains and licenses organizers and is dedicated to helping people get organized.

What Should You Do Right Now–Before Summer Ends?

Allison Carter explained that this time of year is crucial to maintaining an organized, clutter-free home heading into the next season. "Before winter, there are some areas of the home, inside and out, that generally need to be cleaned up and cleaned out," Carter stated.

So before you get overwhelmed with other projects or areas of the house you may have been putting off, start with these 5 simple areas before summer ends:

1. The Garden–Gardening hasn't ended until your beds are cleared out and the bulbs are planted. Once that's done, set aside some time to discard the containers you no longer need. Sweep up. Organize seeds and equipment so you know where everything is next year when the warm weather returns.

2. The Closet–As fall approaches, look through the summer clothes you didn't wear even once this year. This is a good time to purge the unloved clothing and donate to someone who can love it. If you store off-season clothing, you can begin the process by storing the clothes that only get worn in summer such as shorts, bathing suits, beach cover-ups, tank tops, and those white shoes.

3. Pool and Water Toys–Pool related toys and equipment should be dried and put into storage bins for re-use next year. Remember to keep it all together, so it's easy to dig out the next time the thermometer climbs back up.

4. Heating–Now is the best time to check your heating and air system, clean out ducts, and perform any maintenance or repairs that are needed. It's also a good time to change your smoke alarm batteries.

5. The Desk–You know they're coming, so why not get ready for those school papers to flow in. Set up an "in box" for each child's papers to be processed. Set up a "keep" box or file for each child's art or paperwork that you want to hold onto for long-term keepsakes.

Being Prepared Makes the Job Easier

To tackle these projects–and other areas of your house that need organization–Carter recommends you have a kit ready to use.

"Many people have a cleaning bucket or a set of tools for the office, but how many people have a kit for organizing? Not enough," explained Carter.

What should you put in the kit? Here are some things Carter recommends you keep on hand to help with your organizing projects:

• Masking tape
• Sharpie markers
• Post-it notes
• Boxes that can fold flat when not in use
• Scissors
• Label maker, stickers or tape
• Trash bags–use black bags for items that should be thrown away
• Donation bags–to make sure you don't confuse donation items with trash items, use white bags for items that are still usable and should be donated
   

These items will help you quickly work through your projects and finish them off by storing and organizing your items, as well as donating or throwing away any unwanted items.

Plan of Attack – Organize One Step at a Time

Once you have these items together, it's time to prioritize your projects. Although deciding what to do first, second, third and so on can seem overwhelming, Carter has simple advice to help you decide. "Prioritization is based on how important something is to you," explained Carter.

So she recommends you start by asking yourself a few simple questions:

• Why are you doing a project?
• What will the payoff be when you're done? Less stress? Being able to find things quickly and easily? Having a neat, clutter free environment?
• Is the pay-off worth the time? If so, which project has the biggest pay-off?

Then, follow Carter's ABCs of organizing to tackle each project step by step:

A - Assess your situation. What is the problem? What do you need to solve the problem?

B - Bunch things together if they are used together (for example, paints with brushes). Bunch things together that are like items (shirts with shirts). Banish the things that don't belong there at all.

C - Contain what you keep. Find the right bin, basket, or shelf for the items you are keeping.

D - Designate a spot where the items will live in your home.

E – Evaluate. Every day, week, month and year, evaluate your situation and re-organize what has become undone.

Avoid These Common Mistakes
 
When it comes to actually tackling your projects, each one will take a different amount of time. But there can be a fear of over-organizing or continually re-organizing.

To help overcome that problem Carter offered the following tip. "One key to staying organized is to learn when you have reached ‘good enough' and not strive for perfection...because there is never a perfect."

Another common mistake is not using the space well, including room at the top of pantries or closets. "Adding shelves can maximize the space," explained Carter.

Should It Stay or Should It Go?

When organizing a space, there are bound to be a number of items that you just don't know what to do with. How many sheets should you keep in a full closet? What about that gift you received six years ago?

To help you quickly determine what to keep, what to throw out, and what to donate, Carter suggested the following tips:

• Ask yourself questions about how often you use things, how much you enjoy things, and if you really need the items at all.
  
   
• Set maximums by space. For example, designate a space and then only save 3 sets of sheets, 1 box of ornaments, and so on if that's all that will fit in that space.
  
   
• Set maximums by number. For example, keep only 10 scarves, only 40 pair of shoes, only 2 sets of silverware; when you buy a new one, make the tough choice as to which one goes away.
  
   
• Set standards…and stick to them. For example, don't keep anything broken, stained, or redundant. Who really needs 4 can openers? If things are broken and need repair, set a time limit. If you haven't repaired an item in 3 months, then it's probably not that important to you.
  
   
• Don't just pile everything up and toss it. Keep separate piles. If something's still useful, but doesn't meet your criteria to keep it, put it in a pile to donate to a worthy cause.

Finally, remember that it's okay to get rid of things that were once prized possessions.

"Just because you loved something once, doesn't mean you still have to keep it," Carter stated. "Taste changes and it's okay to be done with items you don't love any longer."

Timesaving Tips Straight from the Pro

To help you work quickly and efficiently, Carter offers two important tips:

First, group tasks together so you can get the most done in one location or area. Have all your supplies ready before you start organizing a space. Don't leave the room to put things away. Gather up everything that goes elsewhere and put it away after you finish organizing the space or during a break.

Second, don't confuse grouping tasks with multi-tasking, which can be problematic. According to Carter, you shouldn't multi-task on two projects that both require thinking.

"It takes up more time to switch back and forth from task to task," Carter stated. "If you need to do more than one thing at once, only one project should require thinking. The other should be mindless–like folding laundry while having a conversation."

How to Avoid a Major Re-org Every Year…

Regular maintenance is needed to keep your space organized. This means putting things away after you use them.

"Even if you don't do it right away, you should put items away in a reasonable amount of time," Carter explained. "If you work full time or are busy with kids, you might find that you do a big ‘put away' session on the weekends. And that's okay."

Don't be afraid to re-organize when you see things aren't working. And, every time you bring something new into the house make sure you have a specific place for it. "If it doesn't have a home, it will become clutter," Carter said.

Keep It Real…And Keep Your Sanity

In her final words of wisdom, Carter reiterated that organizing is an ongoing process, not a one-time thing.

"Most people buy more than they actually need–and that's great for capitalism, but bad for clutter," Carter stated. "If your home is full, think twice and three times before making new purchases. And if you do want to buy something, take a minute to toss something out or donate an item."

In addition, to help stay organized, Carter recommends keeping a donation box in a closet and adding to it every time you find things you no longer need. You can also find a nearby donation center or a charity that will pick up items from your home to save time, energy, and your sanity.

8:30 PM - Sep. 23, 2009 - comments {1} - 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

Play a game, win a house?

Play an online game, win a house. It sure may sound too good to be true, but it is indeed a legitimate offer being made by a new website called Play4Property.com.

How Does Play4Property Work? Participants wanting to try to win the available house for that period simply register at the site, pay a $35 entry fee, and play a game of skill called “Spot the Ball”. In the game, players are presented with a picture of people playing a sport, like soccer. In the picture the ball has been digitally removed. The people in the photo are looking at where the ball used to be- and players have to determine the precise spot where the ball is and place a virtual pin as close to the exact middle of the invisible ball as possible to win. When the competition ends on the announced date, the Play4Property’s legal team and sports experts analyze the submissions to determine which participant’s pin is placed closest to the precise center of the ball.

The value of the available house depends on the amount collected in entry fees and is based upon the number of players who have competed in the game for that property. Properties can range in value up to $5 million.

There are actually two types of competitions people can enter at the site. The main competition, describe above, or players can try the Instant Win competition for just $7.50 per play. In Instant Win, if a player picks the exact co-ordinates of the ball, they instantly win a prize, such as a laptop.

Anthony Davis, Play4Property.com’s Managing Director, says that the odds of winning at his site are around 1 in 15,000. That’s much better than the chances of winning the lottery (about 1 in 120 million). And unlike the lottery, this Play4Property.com game actually requires the player to think. “It’s not all about luck”, Davis says, “which makes it much more fun to play.”

But the game isn’t just for those hoping to win a new house. Sellers can also use the site to market their home. Instead of wondering about buyers’ financing or dealing with annoying open houses, sellers can contact Play4Property, upload a description of the house and some photos, and their property can begin being viewed worldwide

8:06 PM - Sep. 17, 2009 - comments {0} - 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

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