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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 commentSwine flu factsSince 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 commentSitting on the tarmacEarlier 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. For proof that these aren't isolated incidents, you only have to look back in history to similar situations. In 1999, Northwest Airlines stranded a plane on the tarmac for 8 hours. American Airlines also stranded passengers for 8 hours in 2006. In 2007, JetBlue held passengers on the tarmac for 11 hours. In many of these cases, passengers were stuck on planes with no food or water-not to mention terrible odors coming from the cramped airplane bathrooms.
But what can you do if you're on a flight that gets stranded on the tarmac? The information below describes what you can do to be prepared and make sure your voice is heard.
Know Your Rights
As a result of long delays years ago, the Air Transport Association-which includes Delta, United, Continental, Southwest, and other airlines as members-released a Customer Service Plan stating that airlines will:
The details of the self-governed Customer Service Plan should be posted on each airline's website. So, before you head to the airport, take a minute to review the airline's specific details regarding this plan.
You can check out the Air Transport Association's website for links to specific airlines. If the airline you're flying on isn't listed on that website, you may be able to find a customer's bill of rights on the corporate website. For instance, JetBlue offers a detailed bill of rights on its website for customers.
What Can You Do?
The national debate is gaining momentum and now's the time to make sure your voice is heard. There are a number of ways that you can join the discussion.
You may want to join the effort to put more stringent rules onto the law books. For example, the Coalition for Airline Passenger's Bill of Rights has proposed a set of rights to be written into law, including a requirement that airlines "establish procedures for returning passengers to terminal gate when delays occur so that no plane sits on the tarmac for longer than three hours without connecting to a gate." You can view the proposed Bill of Rights on FlyersRights.org.
In addition, you can sign a Petition for the Airline Passenger Bill of Rights. You can also contact your Senators and Representative in Congress to make sure they take this issue seriously and work to protect airline passengers' rights. If you don't know how to contact your Senators and Representative, you can quickly find their names, telephone numbers, and websites by typing your zip code into the Congressional Directory on CongressMerger.com.
Finally, if you do experience a horror story on the tarmac, you can submit a complaint form to make sure the incident is recorded.
Be Prepared Before You Fly
Before you get on your next flight, visit FlyersRights.org to download and print two important documents that you can carry on the plane.
The first document is the Emergency Kit Document, which lists items you should have handy on your next flight. The second document is the Stranded Passenger Survival Guide, which features information on what you can do if your plane is stranded on the tarmac for an unreasonable amount of time.
It all comes down to taking some time before you fly to know your rights, be prepared, and take part in the conversation. Have a safe, comfortable flight.
5:11 PM - Oct. 15, 2009 - comments {0} - post commentTax breaks for everyoneThis article is by Amy McAnarney, executive director of The Tax Institute at H&R Block. “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 Owning a home Selling a home 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 commentSeparation anxiety for petsThis 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 “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
11:21 AM - Oct. 11, 2009 - comments {0} - post commentWays to save moneyThis 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! 11:15 AM - Oct. 9, 2009 - comments {0} - post commentSix figure jobsGetting 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. 1:59 PM - Oct. 7, 2009 - comments {0} - post commentProperty tax billsThis 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. 1:56 PM - Oct. 5, 2009 - comments {0} - post commentMen really ARE from MarsThis 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. Women would rather live closer to their extended family than to their job. A home’s security is a deal-breaker for both men and women. Couples say that no one “wears the pants in the relationship” in terms of major financial decisions. Men and women agree on how they would use a spare room, for the most part. -Bedroom: 25% However, men really do want a “Man Cave.”
1:29 PM - Oct. 3, 2009 - comments {0} - post commentWhich 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 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 commentHow the First Time Homebuyer Tax Credit WorksThis 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. 12:39 PM - Sep. 29, 2009 - comments {0} - post commentFannie Mae affects corporate relocationsThis 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: 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: 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 comment8 tips to improve your computer's performance
12:16 PM - Sep. 25, 2009 - comments {0} - post commentTime to get organizedThis 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: To tackle these projects–and other areas of your house that need organization–Carter recommends you have a kit ready to use. What should you put in the kit? Here are some things Carter recommends you keep on hand to help with your organizing projects:
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:
Then, follow Carter's ABCs of organizing to tackle each project step by step: E – Evaluate. Every day, week, month and year, evaluate your situation and re-organize what has become undone. 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:
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." 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." "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." 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." 8:30 PM - Sep. 23, 2009 - comments {1} - post commentPaying off debtThe 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 commentTiming is everythingThese 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 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 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 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 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 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 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 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 commentPaint up, fix upLike 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 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 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
8:19 PM - Sep. 19, 2009 - comments {2} - post commentPlay 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 commentIs 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 commentWhy buying is better than rentingChristine 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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