Chicagoland Home Buyer & Seller News & General Real Estate Information
About Judith Weiner
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About Judith Weiner
By Referral Only …is the heart of my business. I focus 100% of my time providing world-class service to my clients. As a result, my valued clients and friends refer their neighbors, business associates, family and others to me for my trusted advice on buying or selling homes. It is my desire to build a business based on strong, lasting relationships – starting with you!
I am a compassionate, caring and knowledgeable real estate consultant working in the Coldwell Banker office in Highland Park. For over 19 wonderful years, I have consistently and systematically served the Northern Chicagoland Communities. My extraordinary team of detailed oriented office staff & over 100 sales associates work out of our attractive offices in downtown Highland Park on Sheridan Road. My car and home office enable me to ably serve the vast Chicagoland area.
Real Estate transactions often become a complicated maze of numbers and negotiations. Successfully maneuvering through these challenges requires a creative professional who can navigate the way in order to minimize stress and maximize success for home sellers and buyers.
I have been a member of the Chicagoland community all my life. My husband and I raised our three sons in the suburbs and have been residents of Highland Park since 1979. I have been a full-time residential real estate consultant covering the Chicago Suburban marketplace since becoming a real estate consultant in 1987 and have an in-depth knowledge of the North Shore, Northwest and Far North Suburban communities.
I pride myself in maintaining close contact with my clients and delivering World Class Service as well as paying close attention to the details to avoid problems and to ensure that their home sale or purchase experience is a very positive one. I have earned a reputation for leading clients through the entire experience of buying or selling in a caring and professional way. All of my personal and professional goals have been oriented around the care of other people. My people skills and exceptional business management skills enable me to put people at ease and help them find not just a home, but the right home. By listening hard to my clients needs, including the unspoken, I help provide the alternatives that fit their criteria.
My unique, creative and active rather than passive marketing programs effectively sell homes for the best price in the most realistic time. I have developed outstanding negotiation skills and when I put together a contract, you can be assured of a successful closing. I am committed to a long-term career in real estate as evidenced by my belief in placing a premium on continuing education so that you the buyer or seller can be the beneficiary of the latest information, skills and the technological advances. Above and beyond the sales person’s license required to sell real estate in Illinois, I earned my Broker’s license in 1998.
I have my CRS (Certified Residential Specialist) designation, awarded by the National Association of REALTORS® to experienced REALTORS® who complete advanced training in listing and selling. Only 5% of the REALTORS® in the country have earned the right to be called CRS® but they are involved in 25% of all real estate transactions.
I was awarded Graduate, REALTOR® Institute (GRI) symbol from the National Association of REALTORS® after attending a specific, intensive series of a minimum of 90 hours of classroom instruction. The GRI symbol is the mark of a real estate professional that has made the commitment to provide a high level of professional services to you by securing a strong educational foundation.
I was awarded the ABR® (Accredited Buyer Representation) designation that is given to real estate practitioners by the Real Estate Buyer's Agent Council, Inc. (REBAC) of the National Association of REALTORS®. The ABR® designation, the benchmark of excellence in buyer agency service, demonstrates to my clients that I have taken steps to continue my education in the field of buyer representation and have proven experience and training in order to deliver ethical and professional service to real estate buyers.
I have achieved the e-PRO certification awarded to REALTORS® who have taken and passed an extensive online course to help real estate professionals thrive in the competitive world of online real estate from the National Association of REALTORS®. I received my RECS designation from the Real Estate Cyberspace Society. That certification designates REALTORS® who have proven their skills in electronic marketing techniques.
I have achieved Cendant Mobility Inventory and Marketing Specialist (CMIS & CMMS) certifications. The CMIS course covers tasks for safeguarding and selling a transferee’s vacant property after his/her move and how to meet client performance metrics. The CMMS course teaches how to best market the transferee’s old house, and to decrease administrative burdens, and also covers the Amended Sale Program and Broker Market Analysis. I have also achieved Cendant Mobility Buyer Specialist certification (CMBS). This CMBS course covers how to provide transferee buyers top-flight service.
Over the years I have received prestigious awards given to the top Coldwell Banker® real estate agents worldwide such as Coldwell Banker’s International President’s Circle, Coldwell Banker’s International President’s Elite and membership in Coldwell Banker’s prestigious International Diamond Society.
To provide excellence in service and support throughout the process of buying or selling, I have assembled a team of top professionals in lending, appraisal, title, inspection and relocation. I also have all the superior resources available that come with being a part of the Coldwell Banker network of real estate agents.
Whether your need is a first home, a growing family home, an investment property or a home for the retirement years, I know I will be an excellent guide and manager for each transaction. I look forward to the opportunity to be of service.
Home Buyer Tax Credit At A Glance
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$8,000 First-time Home Buyer Tax Credit at a Glance
- The $8,000 tax credit is for first-time home buyers only. For the tax credit program, the IRS defines a first-time home buyer as someone who has not owned a principal residence during the three-year period prior to the purchase.
- The tax credit does not have to be repaid unless the home is sold or ceases to be used as the buyer’s principal residence within three years after the initial purchase.
- The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $8,000.
- The tax credit applies only to homes priced at $800,000 or less.
- The tax credit now applies to sales occurring on or after January 1, 2009 and on or before April 30, 2010. However, in cases where a binding sales contract is signed by April 30, 2010, a home purchase completed by June 30, 2010 will qualify.
- For homes purchased on or after January 1, 2009 and on or before November 6, 2009, the income limits are $75,000 for single taxpayers and $150,000 for married couples filing jointly.
- For homes purchased after November 6, 2009 and on or before April 30, 2010, single taxpayers with incomes up to $125,000 and married couples with incomes up to $225,000 qualify for the full tax credit.
The $6,500 Move-Up / Repeat Home Buyer Tax Credit at a Glance
- To be eligible to claim the tax credit, buyers must have owned and lived in their previous home for five consecutive years out of the last eight years.
- The tax credit does not have to be repaid unless the home is sold or ceases to be used as the buyer’s principal residence within three years after the initial purchase.
- The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $6,500.
- The tax credit applies only to homes priced at $800,000 or less.
- The credit is available for homes purchased after November 6, 2009 and on or before April 30, 2010. However, in cases where a binding sales contract is signed by April 30, 2010, the home purchase qualifies provided it is completed by June 30, 2010.
- Single taxpayers with incomes up to $125,000 and married couples with incomes up to $225,000 qualify for the full tax credit.
Four Ways the 2009 Economic Stimulus Plan Benefits Home Owners & Buyers
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Four Ways the 2009 Economic Stimulus Plan Benefits Home Owners and Buyers
There are four primary sections of the 2009 economic stimulus plan that could be very beneficial if you own or are buying a home.
Benefit #1 - Expansion of Home Improvement Tax Credit
The tax credit for making energy efficient home improvements is now 30% of the cost of the improvements up to a maximum of $1,500. This means that if the improvements cost you $4,500, you would receive a tax refund of $1,500 when you file your tax returns. Eligible improvements include energy efficient exterior doors and windows, insulation, heat pumps, furnaces, central air conditioners and water heaters. Generally, your home improvement contractor and/or the manufacturer selling the improvements issues a certification that clarifies whether the improvements meet the necessary
standards for energy efficiency. Most modern windows, furnaces, and air conditioners meet these requirements. If you've been holding off on making some of these improvements, now is a great time to get a move on it -especially with all the great deals that are being offered!
Benefit #2 - Expansion of First-time Home Buyer Tax Credit
The tax credit available to first time home buyers was increased from $7,500 to $8,000 for homes purchased between January 1, 2009, and December 1, 2009. Also, the credit no longer needs to be paid back as long as you live in the home without selling it for at least 3 years. The previous version of the credit expired on July 1, 2009, and required home buyers to pay the funds back over a 15 year time frame. The income limitations remain the same ($75,000 for single tax payers claiming the full credit and $150,000 for married tax payers), as do most other qualification requirements. Also, the credit remains refundable. This means that first-time home buyers who owe less than $8,000 in taxes for the year are still eligible for the full $8,000 credit when they file their tax returns. In that case, the IRS will write you a check for the difference between $8,000 and your actual tax bill. In fact, the credit can be claimed on your 2008 tax returns that you file by April 15, 2009, even if you buy the home in 2009. There is one catch, however: if you bought the home in 2008, the credit remains $7,500, and it still needs to be paid back over a 15 year timeframe beginning in 2011 when you file your 2010 returns.
Benefit #3 - Higher Reverse Mortgage Loan Limits
The loan limits for FHA-insured reverse mortgages have been increased to $625,500 across the entire country -not just the higher cost areas. The previous limit was $417,000 across the country. This is especially important because the FHA program is virtually the only game in town as private and jumbo reverse mortgage programs have nearly all evaporated. This coincides with another little-known change in the reverse mortgage arena: the availability of reverse mortgages on home purchase transactions. This is a fantastic opportunity for senior citizens to buy a new home and live mortgagepayment-free without having to wait for their old home to sell. Seniors could also use this strategy to buy a new home and turn the old home into a rental or otherwise wait for market conditions to improve before trying to sell the old home.
Benefit #4 - $729,750 FHA and Conforming Loan Limits Restored in High Cost Areas
The $729,750 maximum loan limit had been in force throughout 2008, but was reduced to $625,500 in 2009. The economic stimulus plan restores the $729,750 maximum. This makes higher cost homes more affordable - especially in the coastal housing markets that tend to have higher than average home values. It is always advisable to consult with a Certified Mortgage Planning Specialist TM (CMPS®) when navigating today's turbulent mortgage and real estate marketplace. Call me for names of mortgage brokers.
Foreclosure Fraud Video
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View this Freddy Mac video to get the low down on Foreclosure Scams.
Judith Weiner's Home News - February 2010
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If love sometimes leaves you at a loss for words, here are some quotes you may find inspirational:
If I had a flower for every time I thought of you, I could walk in my garden forever. – Alfred Lord Tennyson
You’re nothing short of my everything. – Ralph Block
Sometimes your nearness takes my breath away; and all the things I want to say can find no voice. Then, in silence, I can only hope my eyes will speak my heart. – Robert Sexton
I love thee to the depth and breadth and height my soul can reach.
– Elizabeth Barrett Browning
I can conquer the world with one hand, as long as you’re holding the other. – Unknown
I love you: Those three words have my life in them. – Alexandra to Nicholas II
If I could reach up and hold a star for every time you made me smile, I would have the whole night sky in the palm of my hand.
– Unknown
You will always be the answer, when someone asks me what I’m thinking about.
– Unknown
Come live in my heart, and pay no rent.
– Samuel Lover
Sometimes the right words are the best Valentine gift of all!
Why Does An Itch – Itch?
We’ve all scratched an itch and felt better for it. But why do we get relief?
Scientists uncovered an answer with magnetic resonance imaging (MRI) in a study where participants were scratched with a small brush – 30 seconds on and 30 seconds off – for a total of about five minutes. Researchers were surprised when areas of the brain that are associated with unpleasant or aversive emotions and memories became less active when participants were being scratched.
Scientists hope this knowledge will lead to help for people who suffer from chronic itching (for example, about 42% of patients who undergo kidney dialysis) by developing a drug that inhibits the same areas of the brain that scratching does.
Eight Mysteries Of Life
Take a few moments to ponder some of these wonderful mysteries of life:
1. If swimming is so good for your figure, why are whales so fat?
2. What should you do if you see an endangered animal eating an endangered plant?
3. If Barbie is so popular, why do you have to buy her friends?
4. When cheese gets its picture taken, what does it say?
5. If it’s true that we’re here to help others, then what exactly are the others here for?
6. What is a free gift? Aren’t all gifts free?
7. How come you never hear about gruntled employees?
8. Before the invention of drawing boards, what did people go back to?
How To Break A Bad Habit
Are you an interrupter? If you are, you might want to rethink your decision to barge in on another’s words the next time the urge strikes you. Why? In addition to generally being considered rude behavior, Elizabeth Gilbert, author of Eat, Pray, Love, says that when she interrupts someone, no matter how she tries to justify it, the truth is that her behavior is telling the other person that what she’s saying is more important than what they’re saying. When you get right down to it, such behavior says, “I’m more important than you.”
If that’s not the message you want to send to your loved ones, in the workplace, during a job interview, or during any interaction, the next time you’re tempted to interrupt, stop and take a deep breath. Take another deep breath. Repeat as needed.
Do You Know Your “nyms”?
The English language has its challenges – even if it’s your native tongue. Here’s a short refresher course in “nym” words, “nym” from the Greek onoma, meaning a name:
Acronym: a word formed from the initial letter or letters of a series of words such as NASA (National Aeronautics and Space Administration).
Antonym: a word opposite in meaning to another, e.g., fast and slow.
Autoantonym: a word that can take two (or more) opposite meanings; for example, fast means both moving quickly or fixed firmly in place.
Capitonym: a word that changes its meaning (and sometimes pronunciation) when it’s capitalized: march and March.
Heteronym: words that have the same spelling, but different meaning and sometimes different pronunciation, such as lead (to conduct) and lead (a metal).
Homonym: words having the same sound and often the same spelling but different meanings: quail (to cower) and quail (a bird). Not to be confused with homophones, which are homonyms that have the same sound but different spelling and meaning (to, too, and two).
Metonym: a word that designates something by the name of something associated with it; e.g., the Crown referring to the monarchy.
Synonym: a word having the same or nearly the same meaning as another in the language, for example, joyful, elated, glad.
Wrapped Vs. Unwrapped
If you’re looking forward to enjoying some Valentine candy but you’d like to enjoy a bit less of it, here’s something to consider.
A study presented at the American Heart Association Conference found that eating candy in wrappers might help us eat less, as opposed to eating unwrapped candies. Researchers found that people who ate candies and kept the wrappers in plain sight ate only about half as many as those who did not.
Lead study author Brian Wansink (www.mindlesseating.org) says, “Having a visual reminder of how much you eat keeps you honest and eating less. Your stomach can’t count, but your eyes can when they see the empty wrappers.”
It also helps to keep the candy in a less convenient location rather than right at your elbow, Wansink says. Relocate the candy bowl five or 10 feet away so you have to get up and walk to it, rather than just reach for it.
How To Help Your Child Learn
Asking your kids about their school day is a good idea. Why? Researchers who study how kids learn already knew that children learn best with their parents or a peer, but it wasn’t clear whether this was because the children were getting feedback and help, or merely because they were explaining their solutions to someone. In a recent study, researchers had mothers simply listen to their children without providing any assistance.
They learned that it’s really effective to get kids to explain things themselves instead of just telling them the answer. Explaining their reasoning – to a parent, peer, or other people they know – helps kids understand the problem and apply what they’ve learned to other situations.
Get Your Dreams On Board
If you have a goal that you want to make into a dream-come-true, take some time to make a treasure map, says personal growth expert and author Shakti Gawain in her book Creative Visualization. A treasure map of what? Your dream!
Here’s what Gawain says to do to get yourself focused on bringing your life in line with your dreams:
Whether you call it a “treasure map,” a “dream board” or a “visioning board,” start with a piece of light cardboard and decide how big you want it to be. Do you want to carry it around with you? Or do you want to hang it on a wall? Whatever your choice, focus on a goal in one area of your life. For instance, if you want to travel the world, decide on where you want to go first, then draw or cut out pictures from magazines or print pictures from the Internet of the destination you have in mind. Then include a picture of yourself doing what you’ve always dreamed of doing when you travel to your dream destination. Look at your treasure map every day so it has a chance to make a strong impact on your consciousness, Gawain says. For an even stronger impact, write a daily affirmation: “Here I am in Tahiti, staying in a luxury hotel with plenty of money to do exactly what I please.” The most important thing, says Gawain: Remember to have fun.
That’s No Mermaid!
In 1493, Christopher Columbus logged seeing three mermaids while he was sailing near the Dominican Republic. He wrote that he was surprised they weren’t as attractive as the depictions he’d seen in paintings. So did the famous explorer actually see three half-fish, half-female creatures frolicking in the sea?
Not likely, experts say. Columbus’ mermaids were probably manatees, which can grow to lengths of up to 12 feet and weigh up to 1,200 pounds. Manatees look somewhat like aquatic elephants, and some think that the romantic depictions of mermaids with long green or blue hair might have been manatees breaking the water surface with seaweed hanging from their heads.
So, while manatees and mermaids are vastly different, there is something lovable about manatees. These bewhiskered, gentle, slow-moving plant eaters are air-breathing mammals – just like us. They communicate with each other using chirps, whistles and squeaks, and just like us, they’ve been observed participating in loosely organized, playful activities such as bodysurfing and follow-the-leader.
Caregiver Challenges
Are you responsible for the care of an elderly family member? If so, you know that being a caregiver can be mentally and emotionally challenging. The National Center on Elder Abuse estimates that one to two million older people have been injured, mistreated, or exploited by someone they depended on. And more unsettling, 75% to 95% of the abuse was committed by family members.
Elder abuse can arise as a continuation of a longstanding pattern of abuse within families. But more commonly, elder abuse occurs because of altered living arrangements and changes in the senior’s health – and the transformation of family dynamics as a result. It’s a complex matter and often misunderstood. The adjustments you have to make as a caregiver can be staggering. So how can you balance your own needs with those of the individual you care for?
Look for resources to help support you. Try to find a way of giving yourself a break. Adult daycare might be one solution, or find someone to come in a few hours every week to help with difficult tasks or allow you to get away for awhile.
Consider residential care if things are really getting out of hand and you need a respite. Though you may feel guilty, you need to look objectively at the situation. A good residential facility would probably be better than the compromised care you might give once you lose your ability to cope patiently with your elderly ward.
Seek counseling if you need help with personal problems that could be contributing to your stress as a caregiver. It may take time, but you can learn new patterns of relating to the person you care for. Ask your doctor for a reference. If you can’t afford a private therapist, check with state and local mental health facilities which may offer free or sliding-scale-fee help.
Be honest with yourself about the situation at hand. Denying that you’re overwhelmed can lead to serious problems – and possibly put someone’s health or life in danger.
Signs You May Need Help As A Caregiver:
· You had a poor relationship with the individual prior to being the caregiver.
· You’re curt and impatient with the individual.
· You view your new role as a burden.
· You feel burned out, stressed out, or depressed.
· You worry that you might become violent.
Check the government sections of your telephone directory for “Aging Services” or “Social Services” for organizations that assist the elderly. There are numerous online resources as well, such as www.eldercarecanada.ca and www.eldercare.gov.
Look Within
Infinite riches are all around you if you will open your mental eyes and behold the treasure house of infinity within you. There is a gold mine within you from which you can extract everything you need to live life gloriously, joyously, and abundantly.
– Joseph Murphy
Are You A Library Lover?
February is Library Lovers’ Month, and research shows that everyone loves libraries, but no one thinks about them very much. Here are six simple ways to love your library:
1. Honor a friend or relative’s birthday by purchasing a book for the library.
2. Buy your library a subscription to a popular magazine.
3. Donate your used books to the Friends Of The Library book sale.
4. Volunteer your time by reading stories to children or helping with class visits.
5. Use your skills to help with programs and fundraising events.
6. Write to your city government and state legislators to urge them to invest in libraries as a vital community resource, one that will save substantial tax dollars in helping people of all ages to be more literate and productive.
7.
Have A Tactful Valentine’s Day
When most people think of Valentine’s Day, they probably aren’t worried about appropriate etiquette for the office. But etiquette expert Lizzie Post of the Emily Post Institute says the subject deserves a little loving care. Her advice: Don’t flaunt your plans – either before or after they’ve happened – when chatting with coworkers or friends.
Valentine’s Day can make people who are not part of a couple feel bad, Post says. Don’t even talk about your plans unless you’re asked to. Try to use the day to celebrate compassion, she advises, to give a little attention to those who might not be feeling as fortunate as you do. While people are probably genuinely delighted about your happiness, being modest in what you share is the most thoughtful approach.
Are You Clinging To The Past?
Some people hate change and so cling desperately to what they know. They find comfort in routines, even if those routines no longer produce what is needed. Instead, according to Price Pritchett and Ron Pound in The Employee Handbook For Organizational Change, some employees merely want to hang on to the familiar, to snuggle into the comfort of what they already know.
People like to feel in control. And generally they dig in their heels because they’re afraid of the unknown, rather than being in love with the way things have been.
But in this day and age of seemingly constant change it’s a good thing to consider how you react to change. Does ambiguity make you nervous? If so, you’re probably going to have to do some work to let go of your grip on the past.
But here’s one thing about change that can have a huge impact on your life: If you resist, you’re liable to seriously damage your career. Even if you’ve been a good and reliable employee for a long time, resisting change can earn you a reputation as a troublemaker; you could become known as someone who gets in the way of progress. You’ll be better off taking hold of the future, rather than hanging on to the past.
Quotes
Spare no expense to make things as economical as possible.
– Samuel Goldwyn
The world is moving so fast these days that the one who says it can’t be done is generally interrupted by someone doing it.
– Harry Emerson Fosdick
Vitality shows in not only the ability to persist but the ability to start over.
– F. Scott Fitzgerald
Rate Lock Duration
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Rate Lock Duration
Lock durations can vary for mortgage financing, but most lenders lock in the interest rate for 60 days from the date the loan application is submitted. As long as the loan is closed within that lock-in period, the lender honors the agreed upon interest rate.
Some consumers are misled by advertising that quotes unrealistically low rates based on 15- or 30-day lock durations. This is called 'short-pricing.' The lender basically knows the borrower doesn't have time to meet their conditions and have all the necessary paperwork in order within that brief time period. As a result, the lender is not obligated to honor the low rate that was listed in their advertising.
For simple refinance transactions, a 45-day lock-in period is more realistic. For purchase transactions, which are typically much more complex, you're much safer going with a 60-day lock, even though the interest rate might be a little higher than the rate you see quoted on billboards and the Internet.
Borrowers should make sure they have a written rate lock agreement, and allow themselves a reasonable amount of time to close their loan. I prefer to lock in all my clients as soon as their application is filed, rather than gamble with predicting short-term interest rate movement. My team and I focus more on assisting clients with long-term goals and management of their mortgage debt to secure a strong financial future.
The Truth About Appraisals
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The Truth About Appraisals
Knowing the Guidelines Solves the Mystery
The appraisal process often baffles consumers. They may feel that their home is worth a higher dollar amount, and so the appraised value doesn't always make sense to them. It is important to know that the appraiser is completely independent from lenders, buyers, sellers, and Real Estate Agents, and that the guidelines to which they adhere are dictated by the Uniform Standards of Professional Appraisal Practice (USPAP) and Fannie Mae. In most states, the mortgage lenders must also disclose the purpose of the appraisal, as each transaction carries its own set of rules.
In essence, these important guidelines help appraisers put a fair market value on homes based on comparable sales in the same area, and the home must be bracketed in size and value.
For example, there is no set dollar figure associated with a great view, pool, spa, bathroom upgrades, etc. If a homeowner installs a custom pool that cost them $30,000, but the local marketplace supports the value of a pool at $15,000, then that item will be bracketed as [$15,000] on the appraisal.
Upgrades can usually be expressed at a higher percentage of their value in newer homes because the only way to obtain those upgrades was to put more money into the cost of building the home. On the other hand, the upgrading or remodeling of an older home is rarely reflected in full in the final appraisal. This is because typically 25-40% of the project involves demolition and the fixing of issues that aren't uncovered until the project has already begun, such as plumbing or wiring that may need updating.
Ultimately, the value of the upgrades must be supported by comparable examples within the same marketplace. These comparisons must be drawn from current market activity within the last six months. This is a safeguard to prevent appraisers from attaching too high a value to the home in question, and opening up the appraisal for review. This guideline further states that appraisers can only base their opinion on the value of homes that have actually closed escrow.
As a loan professional, I make a point to follow the appropriate guidelines at all times. This promotes a good relationship with the lender, and helps to create easier and much smoother closings for my borrowers.
Greg Schneider
V.P. Residential Lending
PHH Home Loans
Phone: (847)686-0158
Fax: (847)686-0158
gxschneider@cbburnet.com
http://www.GregSchneiderOnline.com
Choosing a Fixed Rate Loan
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| Choosing a Fixed Rate Loan |
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 Fixed rate loans generally come with one of two options; the 30-Year Fixed and the 15-Year Fixed. If a borrower is planning on being in the same home for a long period of time, a 30-Year Fixed may be more attractive because it offers stability. The monthly payment will remain consistent over the life of the loan. If interest rates are at historic lows at the time the borrower is seeking to obtain financing, this is a good program to consider.
A 15-Year Fixed loan program offers the same stability, but the accelerated amortization schedule makes the monthly payment substantially higher. While the interest rate may be lower on this type of loan, the borrower must be willing to commit to a higher monthly payment. If the borrower wishes to retire in 15 years and be debt-free at that time, this loan program may be more suitable to the borrower's long-term needs.
It is also possible to make pre-payments on a 30-Year loan and reduce the life of the loan, as well as the overall interest payment, without committing to the higher monthly payment of a 15-Year program. As long as there is no pre-payment penalty associated with the 30-Year mortgage, pre-payment offers the borrower the latitude to make additional payments when it is affordable. If cash flow becomes difficult, this arrangement will not put the borrower in a compromising position.
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What Is a Prepayment Penalty?
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What Is a Prepayment Penalty?
 A prepayment penalty is a fee charged to borrowers that make full payment on their mortgage, or pay off a substantial portion (generally anything exceeding 20% of the total loan amount), ahead of schedule. This is a clause written into some contracts to protect the lender's book of business in exchange for providing a lower interest rate, or for providing financing to a high-risk borrower.
Prepayment penalties vary with different lenders, but generally apply to a one-, two-, three-, or five-year period of time. This fee can be expressed as either a specific number of months' interest or a percentage of the outstanding balance. A 'hard' prepayment penalty applies to either the refinance or the sale of a property. A contract written with a 'soft' prepayment penalty permits the borrower to sell their property without incurring a penalty, but does restrict refinancing for a set period of time. It is important for the consumer to know that a prepayment penalty is the borrower's choice and should never be considered a requirement!
Make sure you are working with a reputable loan professional who is aware of your long-term plans before consenting to sign off on an agreement that includes a prepayment penalty! Always ask for a written evaluation of your loan options.
What Is "Seller Rent-Back"?
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What Is "Seller Rent-Back"?
 In home purchase transactions, there are many times when the buyer and the seller are simply unable to agree upon a specified closing date. The Real Estate Agent involved can negotiate a 'rent back' period that is agreeable to both parties. This means the transaction technically closes, the loan for mortgage financing is funded, and ownership of the property is transferred into the buyer's name. However, the buyer does not take occupancy of the property until several days later. Instead, the buyer sets up a rental agreement in which the property is leased back to the seller for a temporary period that everyone has agreed upon.
While this strategy is fairly common, it is important to make sure the seller is not occupying the property in a lease agreement for more than 30 days* after the close of the purchase transaction. This would constitute a big problem for the new homeowner. After 30 days, the lender would view this as a non-owner occupied purchase, and it would cause the terms of the loan to change radically.
*This requirement can vary depending upon the lender. Always verify that the timeframe is permissible prior to drafting such an agreement.
Ways to improve a Credit Score
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Ways to Improve a Credit Score
 With identity theft on the rise, consumers are becoming increasingly aware of the importance of reviewing their credit reports. However, their thoughts about credit and its long-term impact upon their financial future typically end there until it's time to apply for a home loan. A credit score is used to evaluate how likely a borrower is to repay their loan. There are several actions a person can take to impact their score. Here are a few to keep in mind.
If someone has a credit card which has a high balance, while their remaining credit cards have low or zero balances, it's best to distribute the debt across the cards in order to change the ratio of debt to available credit.
Many consumers believe that they should close an existing credit card account if the card is inactive. It's better to keep the account open and use it periodically in order to take advantage of its contribution to their long-term credit history.
With the flood of credit card offers that come in the mail, it may be tempting to open new accounts. However, these "pre-approved" offers are not approved until the companies run a credit report which will temporarily impact the applicant's credit score. In addition, experts recommend that a person maintain between two to five credit card accounts, total, so it's best to avoid accumulating too many.
There are several factors that contribute to a credit score. But by observing the tips above, as well as making payments on time and keeping balances as low as possible, a consumer is sure to achieve superior results.
High Credit Score = Low Mortgage Rate
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High Credit Score = Low Mortgage Rate
 Credit scoring was developed in the 1960s as a means to determine whether or not consumers were likely to repay their loans. The score ranges from 350 to 850 with a higher score being extremely favorable. Essentially, a high credit score translates into lower interest rates for the borrower.
There are five factors that comprise the credit score. Payment history accounts for 35% of the score; outstanding credit balances have a 30% impact; credit history makes up 15%, type of credit factors at 10%; and inquiries influence the score by 10%. This gives the lender a snapshot of an individual's sense of financial responsibility and ability to pay back loans.
There are many quick tricks to improve the credit score, and I can provide borrowers with more information on this subject. If necessary, I guide them to a reliable resource for credit remediation. If a borrower has to pay a higher interest rate to close a loan, the tarnished credit rating will begin to improve once mortgage payments are made on time and in full. If that is the case, my team and I will be on the watch to alert the borrower when an opportunity arises to refinance and get a lower interest rate.
The Home Equity Line of Credit
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The Home Equity Line of Credit
 Home equity lines of credit have become increasingly popular, and there are many types of loan programs available in this genre. This type of credit line is not meant for day-to-day expenses as a credit card would be, however, many consumers use their home as collateral to obtain an equity line of credit to pay for higher ticket items such as educational expenses or home improvements.
Borrowers may want to compare the advantages of a traditional second mortgage over an equity line of credit. But they should not compare these programs based on the Annual Percentage Rate (APR) alone. The APR in an equity line of credit is based only on the periodic interest rate, and does not include other charges such as points, maintenance fees or transaction fees. Conversely, a second Trust Deed takes all points, fees, and other charges into account when calculating the APR.
If someone you know is interested in an equity line of credit or a traditional second loan on their mortgage, I can provide them with a spreadsheet to compare available loan programs to review with their financial advisor.
Preparing Your House for the Market
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Preparing Your House for the Market
 If you're selling your home, make sure your home has "curb appeal." Remember, you can't change a first impression. If your home looks like a diamond in the rough, think about putting a small investment into cleaning up the outward appearance.
Imagine that you are seeing the property as a potential buyer. You'll want to do a little yard work - clear away dead shrubbery, and trim your trees and lawn. Weed the flower beds or plant some flowers that will bloom in season. Make sure the driveway is not stained, and if you can't afford to paint the home entirely, at least make sure the front door and immediate entryway is immaculate.
Fresh and clean are still the keywords to making a good first impression once the potential buyer walks through the door. Unless a particular window is facing an eyesore or a neighboring building, open the drapes and let the sun shine in! Put your dog in the back yard or garage so he's not jumping on the new people who just walked in.... they might have allergies! There is much you can do to improve the look of your home, without investing a great deal of money.
Dealing with Debt After Retirement
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Dealing with Debt After Retirement
 Reverse mortgages designed to help "house rich, cash poor" seniors meet their day-to-day expenses have gained popularity. Equity is taken out of the home, so debt increases and equity diminishes over time, (unless the property value increases and offsets this use of equity).
Many lenders offer reverse mortgages, and most are set up so that there is no monthly payment as long as the owner or co-owner(s) reside in the home. There are no minimum income requirements, and most plans allow the owner to retain title to the property until they have lived in a different permanent residence for at least 12 full months, sell the property, die, or the end of the loan term is reached.
The Home Equity Conversion Mortgage (HECM) is the only type of reverse mortgage insured by the Federal Housing Administration (FHA). Even if the original loan on the home was not an FHA loan, the reverse mortgage can be.
Seniors should first consider all their options and take a realistic look at monthly expenses. The AARP warns not to take too big of a chunk out of home equity, as this may affect the ability to collect Social Security Income (SSI). As an alternative, the retired home owner can consider downsizing to a smaller dwelling, or relocating to a less expensive neighborhood. Visit http://www.aarp.org for more information.
Rate Lock Duration
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Rate Lock Duration
 Lock durations can vary for mortgage financing, but most lenders lock in the interest rate for 60 days from the date the loan application is submitted. As long as the loan is closed within that lock-in period, the lender honors the agreed upon interest rate.
Some consumers are misled by advertising that quotes unrealistically low rates based on 15- or 30-day lock durations. This is called 'short-pricing.' The lender basically knows the borrower doesn't have time to meet their conditions and have all the necessary paperwork in order within that brief time period. As a result, the lender is not obligated to honor the low rate that was listed in their advertising.
For simple refinance transactions, a 45-day lock-in period is more realistic. For purchase transactions, which are typically much more complex, you're much safer going with a 60-day lock, even though the interest rate might be a little higher than the rate you see quoted on billboards and the Internet.
Borrowers should make sure they have a written rate lock agreement, and allow themselves a reasonable amount of time to close their loan. I prefer to lock in all my clients as soon as their application is filed, rather than gamble with predicting short-term interest rate movement. My team and I focus more on assisting clients with long-term goals and management of their mortgage debt to secure a strong financial future.
The Difference Between Pre-Qualification and Pre-Approval
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The Difference Between Pre-Qualification and Pre-Approval
 Pre-qualification is the first step in obtaining mortgage financing. A potential borrower answers a few questions to provide the loan consultant with a quick snapshot of the borrower's income, existing debt, accumulated savings and whether or not there is a co-borrower. Signature(s) allow the loan consultant to run a credit report and begin to determine what loans are good candidates for this particular client. However, there are literally thousands of loan programs available. It is important for the loan professional to know the long-term financial objectives of the prospective homeowner.
Pre-approval is a written documentation that proves the borrower has full support of a lender. It means the form 1003 Uniform Residential Loan Application has been completed and reviewed by an underwriter. Based on the borrower's income, debt ratio and savings, the underwriter will provide a dollar amount this borrower is eligible for. Now the borrower has the convenience of shopping for a home in the price range agreed upon by the lender.
Pre-approval allows potential homeowners to shop as cash buyers, and that means negotiating power. The seller will take an offer from a pre-approved shopper much more seriously and may even accept a lower bid because they know the financing is in place and the deal is secure.
What Constitutes Closing Costs?
Posted at 12:51 PM, Jan. 20, 2007
What Constitutes Closing Costs?
 Closing costs are expenses that cover fees associated with the transfer of property ownership, fees paid to state and local governments, and the costs of obtaining a mortgage loan. Some of these fees are negotiable, and could be paid by either the buyer or the seller. Some costs are one-time fees (non-recurring closing costs, such as title search, termite inspection, appraisal, etc.); while other fees such as homeowner's insurance or property taxes are things you will expect to continue to pay on a regular basis as a homeowner.
As part of the loan selection process, your mortgage consultant should be giving you some idea of how much money you should have in reserve to cover your end of these costs. The Real Estate Settlement Procedures Act (RESPA) requires the lender to provide you with a Good Faith Estimate within three days of the submission of your loan application.
RESPA also states that as a home buyer, you have the legal right to request a copy of the HUD-1 Settlement Statement 24 hours before your closing is scheduled. The HUD-1 clearly defines all closing costs, including those that are to be paid by the buyer and the seller. It's a good idea to have both of these forms before your closing so you can compare the estimated costs to the actual costs before you finalize your transaction.
PMI deductible for many homeowners
Posted at 12:49 PM, Jan. 20, 2007
New tax law tweaks home-buying math
Bush signs legislation that makes PMI deductible for many homeowners.
By Les Christie, CNNMoney.com staff writer
December 20 2006: 12:42 PM EST
NEW YORK (CNNMoney.com) -- A $40 billion tax bill signed into law Wednesday by President Bush extends several popular tax breaks and introduces a new one - tax-deductibility of private mortgage insurance (PMI).
Only homeowners with adjusted gross income less than $110,000 and who itemize their deductions will be eligible to reap the benefit.
But for those buyers, it will change the math of buying a house with a low or no down payment.
"I love it," says mortgage broker Bob Moulton of Americana Mortgage Group, "Even though it's limited in who can qualify, it helps people get into a home."
Most lenders require buyers putting less than 20 percent down to purchase PMI because borrowers are more likely to walk away from a mortgage when they have less of their own money invested in the property. Lenders use PMI to protect themselves against that risk.
The alternative to PMI is an equity loan "piggybacked" on top of the first mortgage. According to Moulton, extremely low interest rates on home equity loans (HELs) and lines of credit (HELOCs) encouraged buyers to use piggybacks instead of PMI the past several years.
In addition, equity loan interest is tax deductible. With that advantage and the low rates, piggybacks became far cheaper than PMI.
That situation has reversed because equity loans are based on the prime rate, which has climbed from about 4 percent to 8.25 percent.
Today, according to Moulton, on a $225,000 home, the piggybacked portion of the loan would cost about $4,000 a year while the PMI payment would come to about $3,000 - or less - depending on the borrower's credit score.
The tax deduction on the equity loan would be about $1,600 for a borrower near the upper income limit. With the new law, the PMI tax break would be about $1,200.
That means choosing PMI would cost $1,800 compared with $2,400 for the piggyback loan, an $800 savings.
"It's tough to justify going for a piggyback now," says Moulton.
How Adjustable Rate Mortgages Work
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How Adjustable Rate Mortgages Work
 During the last decade, Adjustable Rate Mortgages (ARMs) have increased in popularity among consumers. These days, few homeowners (especially first-time buyers) remain in their homes for more than seven years. In this case, it often makes sense to get an adjustable rate mortgage with a lower rate, especially one with a 5-year or 7-year fixed portion, since they won't have the loan long enough to be concerned about rate fluctuation.
Adjustable Rate Mortgages have three main features: Margin, Index, and Caps. The Margin is the fixed portion of the adjustable rate. It remains the same for the duration of the loan. The Index is the variable portion. This is what makes an ARM adjustable. Margin + Index = Interest Rate.
It's important to understand that there are many different indices: The 11th District Cost of Funds (COFI), the Monthly Treasury Average (MTA), The One Year Treasury Bill, the Six Month Libor, etc. Each index has its own strengths and weaknesses; some are slow moving, others are more aggressive.
The third and final component of Adjustable Rate Mortgages is Caps. Caps limit how much the rate can fluctuate over time. Annual Caps limit changes to the annual rate, whereas Life Caps provide a worst case scenario over the life of the loan.
What Is Title Insurance?
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What Is Title Insurance?
 Title insurance is a policy that is usually issued by a title company to protect the lender against something that might have happened in the past, rather than something that might occur in the future. In essence, an extensive search of public records is conducted by the title company to validate who has held title to the property in the past. The lender wants to know if there are any liens, judgments or easements on the property that they should be aware of.
But title insurance also guards against hidden risks or unknown factors that might cause an encumbrance at some point in the future, such as unknown heirs, forged deeds or wills, misinterpreted wills, false impersonation of the true owner of the property, deeds signed over by persons of unsound mind, or defects in the recording of past titles. Title insurance covers the cost of the title search, and any legal fees that may result from any dispute over past property ownership. It is required by the lender and paid for by the buyer.
The smart home buyer will also purchase title insurance to protect their own interests. This is a one-time premium that protects the buyer or their heirs, as long as they retain an interest in the property.
The ABC's of Radon in Illinois
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The ABC’s of Radon in Illinois
Test Your Home Today
Test your home for radon today. Radon, an indoor air pollutant, is a colorless, odorless radioactive gas. Radon comes from naturally occurring uranium in the soil. The only way to tell how much radon you have in your house is to TEST.
BE AWARE
The USEPA estimates that approximately 13% of lung cancer deaths are radon related. The remaining 87% of lung cancer deaths are related to smoking. The USEPA has also concluded that smokers are at higher risk from radon. The USEPA recommends that indoor radon levels be below 4 picocuries per liter of air.
Do You Know Where Radon Comes From?
Most radon enters a home because of air pressure and temperature differences between the home and the outside air. When air is vented from buildings by natural or powered ventilation, radon and other soil gases are drawn in from the surrounding soil through openings between the house and the soil.
Elevated radon levels have been found throughout Illinois which is made up of 3 zones. Lake and Cook Counties are in zone 2 where Moderate to High levels of Radon can be found. People residing in zone 2 and zone 3 may tend to dismiss radon as a health risk. But, elevated radon levels (4.0 pCi/L or more) occur in these areas just as they do in zone 1. Don’t be fooled. Test for radon. The only way your family can know whether you have an elevated radon level is to test for it.
Where Do You Obtain Kits?
• Kits may be available at your county health department, local extension office, hardware store, or home improvement store. • Call the Illinois Emergency Management Agency (IEMA)-Division of Nuclear Safety Radon Program at 1-800-325-1245 for a list of laboratories that sell radon kits, or visit our website at www.state.il.us/iema. • IEMA also has a list of measurement professionals who can test for you. For consumer protection, the Radon Industry Licensing Act (RILA) requires measurement professionals who test for radon and mitigation professionals who reduce radon in structures to be licensed by IEMA.
If your home has elevated radon, IEMA has a list of licensed radon reduction contractors (mitigators) who can fix your radon problem. IEMA recommends hiring a licensed mitigator because they have the proper equipment, specialized training and technical skills needed. Using a professional can offer peace of mind. Don’t let radon be a problem in your house.
Where Do You Get Information About Radon?
Courtesy of: The Illinois Emergency Management Agency-Division of Nuclear Safety Radon Program, 1035 Outer Park Drive, Springfield, Illinois 62704, Radon Information Line:1-800-325-1245 and at www.state.il.us/iema
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