How To Replace Your HVAC Air Filter

In the two-minute video above, you'll learn how to replace an air filter from start-to-finish.  There's no need for tools and no need for experience -- the job is about as basic as home maintenance jobs come.
Air filters should be changed at least quarterly but it's okay to change on a monthly rotation, too -- especially if your home has shedding pets, or is under construction or repair. Just remember that not all air filters are created equal.
In this famous video, we see how $0.99 filters can fail to get the job done. Spending $10-15 for a filter that works is a better idea.
Save money by buying in bulk.

Sense of Security

Not Protecting Your Home Can Cost You

Burglary is a fact of life. It happens every day, often to people who think it'll never happen to them. In fact, the number of burglaries is on a steady rise, climbing nearly 4% from 2004 to 2008...and 6% since 1999.

And of the more than 2 million burglaries reported in 2008, 70% took place in residential homes rather than businesses. Those burglaries averaged more than $2,000 in stolen items, adding up to nearly $5 billion in lost property in one year alone!

Despite these alarming statistics, you're not at the mercy of the would-be burglars. Believe it or not, it's not fate that determines whether your house is burglarized. Taking the right steps...and avoiding others...can significantly reduce your risk.

How to Protect Your Home
Recent studies (including the Greenwich Study of Residential Security conducted by Drs. Simon Hakim, Gideon Fishman and Yochanan Shachmurove) have found that alarm systems are the single most effective way to reduce the risk of burglary. In addition, studies have noted that houses near wooded areas or in areas with easy access to highways tend to get targeted more often. If you're in the market for a new home, you may want to consider these factors.

If you already live in a house or want to purchase a house that fits that description, don't fear. You'll just want to take extra precautions, such as clearing the bushes and branches away from windows and entrances, installing fake or real security cameras in prominent places so potential thieves will see them, and maybe even starting up a neighborhood watch program.

In addition to those tips, the following steps can help you protect your home and provide a sense of security for your family.

What Should You Do?

• Lock doors and windows.

• Keep garage and tool shed locked.

• Clear obstructions in your yard, like bushes near windows, that might conceal a burglar.

• Change your locks when moving into a new house or apartment.

• Use exterior lighting around your home, especially motion detecting lights that can come on without notice and surprise a would-be burglar.

• Use a timer to turn lights on in your home when you're out of town.

• Even if a stranger asks to use your telephone for an emergency, say no. Instead, offer to make the call for them while they wait outside.

What Should You Avoid?
Avoid keeping large sums of money in your house, but if you have to, don't brag about it even to close friends

Don't leave notes on your door with information about where you are or when you'll return.

Don't hide a key, especially in obvious places. Leave your spare house keys with a trusted neighbor instead.

Keep expensive electronic equipment and other high-price items out of site from the windows.

Don't answer personal questions on telephone surveys that may give out information about your possessions or your schedule (e.g., what hours you work or when you get home every day).

Never let a service representative from a utility company enter your house unless you have an appointment or can verify identification.

If you use social networking sites like Twitter and Facebook, don't broadcast that you're going on vacation or when you'll be away for a trip. Wait until you get home, and then post the pictures or make posts about it.

Keeping Your Children Safe

Preventing Accidental Poisoning

Poison control centers around the United States handle one poison exposure every 15 seconds. Of those calls over 50 percent concern children under the age of six. In an effort to protect those you love, we felt it necessary to share some important tips for preventing accidental poisoning.

We've just given you two very frightening statistics concerning poisonings in the United States. Here are a few more, courtesy of the American Association of Poison Control Centers:

89% of all poison exposures occur in the home. Most of these in-home poisonings involve everyday items such as cleaning supplies, medicines, cosmetics and personal care items.
92% of all poison exposures involve only ONE poisonous substance.
86% of all poison exposures are unintentional.
75% of all poison exposures involve ingesting a poisonous substance.
The most common forms of poison exposure for children under the age of six are (in order): personal care products, cleaning substances, analgesics, and plants.
So, what can we take away from the above data? Very simply, our children have the greatest chance of being poisoned in our very own homes, by products that belong to us. While you're allowing that idea to sink in, let us point out that there is some good news. Considering where and how most poisonings take place, educating yourself and your children about the dangers in and around your home will greatly reduce their chances of being accidentally poisoned.

10 Tips That Will Save Lives
According to the Poison Control Centers, the following are the top 10 ways to keep children safe from poison.

10. Keep potentially harmful products such as cosmetics, perfume, cigarettes, alcohol, vitamins with iron, and over-the-counter drugs clearly out of reach.

Keeping toxic products out of the reach of children almost seems like pointing out the obvious. What we found interesting about this tip, however, were some of the items listed.

You may not think of cosmetics, perfume and vitamins as being dangerous, but when ingested by young children many products can become toxic. In addition to keeping these items out of their reach, we suggest minimizing your use of them while children are present. Watching you apply make up and perfume may be all it takes to spark a child's curiosity.

9. Know your plants!
Many plants, both inside and outside your home, can be toxic. For a list of the most common toxic plants, log onto www.poison.org. It is also recommended that you tell your children to NEVER ingest a plant, mushroom, or berry, unless an adult (preferably a parent) gives it to them.

8. Many poisonings occur when a product is in use. If the doorbell or phone rings, or there are other distractions, keep the product with you.

This is a great idea on paper, but the hard part is remembering to do it when a distraction occurs. We suggest adopting the mindset ahead of time. Whenever using household cleaners in the presence of younger children, consciously tell yourself that if something comes up, you will either first secure the product away, or keep it on your person.

7. Do not take medicine in front of young children.
Children love to imitate their parents, so be smart when you take any type of medicine.

6. NEVER call medicine "candy".
This is a trick used by many parents in order to get their children to take medicine. The problem is that it has the ability to backfire. The bottom line is that medicine is not candy and it should never be thought of as such.

Children should also be instructed to NEVER take medicine unless a parent gives it to them.

5. Keep medicines and household products/cleaners out of reach and in locked cabinets.
Since medicine and household products/cleaners are some of the more toxic products in our home, it is not only important to keep them out of a child's reach, but to also keep them in a locked cabinet. Children go from crawling to climbing very quickly, so it's important to be prepared.

4. ALWAYS keep products in their original containers.
This is incredibly important for two reasons. The first has to do with establishing consistency when it comes to the products in your home. Second, many household products come in bright, vibrant colors. Storing these products in clear bottles can be an invitation for a child to investigate.

3. Do NOT store food products and household cleaners in the same location.
Once again, this is all about establishing consistency within your home.

2. Ask for child resistant containers.
While they are fairly standard with most medicines, you must insist that any medicine you purchase comes in a child resistant container. If you have trouble opening these types of containers, check with your pharmacist for acceptable alternatives.

1. PLACE THE PHONE NUMBER TO THE POISON CONTROL CENTER IN YOUR AREA, EITHER ON OR NEAR EVERY PHONE IN THE HOUSE.

Putting the number on speed dial is fine, but it is not enough. This phone number needs to be visibly posted, so that anyone needing to make the call has the information directly in front of him or her on every single phone in the house.

We hope the information provided will be taken to heart and used, as it has been shown to greatly reduce both poison exposures and fatalities for children. For more information on the subjects of poison exposure and prevention, call the National Poison Help hotline at
1-800-222-1222.

America's 20 Most Miserable Cities

Forbes: Misery Measure takes into account unemployment, taxes (both sales and income), commute times, violent crime and how its pro sports teams have fared over the past two years. We also factored in two indexes put together by Portland, Ore., researcher Bert Sperling that gauge weather and Superfund pollution sites. Lastly we considered corruption based on convictions of public officials in each area as tracked by the Public Integrity Section of the U.S. Department of Justice.

We expanded the list of cities under consideration this year to include the 200 largest metro areas (in years past we've examined 150) which led to a shuffling in the ranks. Any area with a population of more than 245,000 was eligible.

How To Remove Stickers And Adhesive-Based Price Tags From Just About Anything

How to Remove Stickers -- powered by eHow.com
Sometimes, price tags just don't want to unstick. No matter how hard you scrub and scrape, tacky residence stays behind. Turns out, getting "the stick" off your stickers isn't so hard when you have the right tools.

In this 2-minute video from eHow.com, you'll learn how to remove stickers and adhesive-based price tags from common household items including:

• Wooden furniture
  
• Glass vases and other glassware
  
• Plastic pieces
  
• Cardboard boxes

The best part? All the supplies you'll need are already in your home.

Mortgage rates will jump.

According to The San Francisco Chronicle
Mortgage rates poised to jump as Fed cuts funds

The Federal Reserve is poised to turn off a major money spigot that has helped sustain the ailing real estate sector, as an extraordinary program under which the Fed has pumped $1.25 trillion into the mortgage market is slated to end March 31.

"Housing has been on government life support, and without it the crash would have been much more severe," said Mark Zandi, chief economist with Moody's Economy.com in Pennsylvania. "This spring and summer as those policy efforts unwind, we most likely will see mortgage rates move higher and more house-price declines."

To read the full story, please click here.

Good real estate news: Home equity is rising again

Numerous articles have reported that homeowners are underwater and that strategic defaults are increasing. However, a little known statistic by the Federal Reserve shows that home equity again is on the rise.
MAKING SENSE OF THE STORY FOR CONSUMERS

The Federal Reserve conducts substantial research on mortgage balances and home-value changes in hundreds of local markets nationwide and reports its finding quarterly. According to the Fed’s most recent “flow of funds” survey, homeowners’ net equity increased by nearly $1 trillion compared with the recession’s lowest point between the first and third quarters of 2009. From June 30 to Sept. 30, net equity rose by $418 billion.

According to a report by Zillow.com, the overall negative equity rate among U.S. homeowners remained flat in the fourth quarter at 21.4 percent. This report, combined with other housing factors and studies, may indicate that the unprecedented reduction in home equity is shifting.

Some homeowners, especially those in areas with high foreclosure rates, are choosing to strategically default on their mortgages, even though they can afford the mortgage. Many homeowners who choose this approach do so because they do not see an economic rationale in continuing to make their mortgage payments. Homeowners considering this option should be aware of the negative effect it will have on their credit status. Foreclosures can remain on credit reports for up to seven years, likely increasing the interest rates the consumer pays for credit, and making it more difficult to receive approval on a new mortgage loan.

To read the full story, please click here.

Separating FHA Fact From Fiction : Mortgage Insurance Premiums

The mortgage lending landscape changes a lot.  Rates and guidelines are in constant flux, and it creates preparedness challenges for buyers that aren't paying in cash.

The loan you get today won't always be the loan you get tomorrow.

Because of how frequently bank rules are changing, it can be hard for laypersons to distinguish between mortgage fact and fiction of "what's coming next".

Recently, we saw this with respect to FHA home loans.

January 20, 2010, the FHA issued a press release with new lending guidelines.  Specifically, it announced 3 changes that will be effective starting April 5, 2010:

1. Upfront mortgage insurance premiums increase from 1.75% to 2.25%
   
2. Allowable seller concession reduced from 6% to 3%
   
3. FICO scores of 580 or lower are subject to a minimum 10% downpayment

But, also in its official statement, the FHA announced it would ask Congress for permission to raise monthly mortgage insurance premiums.  This is where the rumors started.

Nestled on page 348 of the Budget of the United States Government, Fiscal Year 2011, in a section titled Special Topics, there is a 1-paragraph notation that details the FHA's petition. 

1. Raise monthly premiums by roughly 0.30%, or $25 per $100,000 borrowed per month
   
2. Lower upfront mortgage insurance premiums by 1.25%, or $1,250 per $100,000 borrowed at closing

For now, the request is neither approved nor acknowledged by Congress. It's merely a request. And in the event that Congress does approves it, that doesn't mean that FHA has to stand by its initial projections.

Truth is, about the only thing we know about the future of FHA lending is that, come April 5, 2010, borrowing money is going to be tougher, and mortgage expensive. These are the facts as we know them today.

Homebuyers should plan accordingly.

How Rising Consumer Sentiment Is Linked To Higher Home Prices

Consumer Sentiment has been on the rise since last February and it's something to which home buyers should pay attention. 

The affordability of your next home may hinge on consumer confidence.

As the economy recovers from a near-the-brink recession, many of the elements of a full recovery are in place.  Business investment is returning, household spending is expanding, and financial systems are gaining strength. 

Consumer confidence is at a 2-year high.

What's missing from the recovery, though, is jobs growth.  Another net 20,000 jobs were lost in January. Data like that hinders economic growth.

That said, twenty-thousand jobs lost is a much better figure than the several hundred thousand that were shed per month throughout early-2009, but it's still a net negative number.  Not only does household income drop when Americans lose jobs but so does the average American's confidence in his or her own economic future.

This is one reason why jobs growth is so closely watched by Wall Street -- jobs are linked to higher confidence levels which, in turn, is believed to spur consumer spending.

Consumer spending represents 70% of the U.S. economy.

As confidence rises, it could be good news for the economy, but bad news for home buyers. More spending expands the economy and, all things equal, that leads mortgage rates higher. 

Same for home prices. More confidence means more buyers which, in turn, squeezes the supply-and-demand curve in favor of sellers.

Later this morning, the University of Michigan will release its February Consumer Sentiment survey. If the reading is higher-than-expected, prepare for mortgage rates to rise and home affordability to worsen.

In Pictures: The Severity Of The Foreclosure Crisis Depends On Where You Live

Foreclosures stories dominate the national housing news. It seems at least one foreclosure-related story makes its way to the front page or the nightly news every week.
But for as much as the foreclosure filing statistics can be astounding -- over 300,000 homes were served last month alone -- the prevalence of foreclosures depends on where you live.
As reported by RealtyTrac, just 4 states accounted for more than half of the country's foreclosure-related activity last month.

• California : 22.7 percent of all activity
• Florida : 14.9 percent of all activity
• Arizona : 6.7 percent of all activity
• Illinois : 5.7 percent of all activity

The other 46 states (and Washington D.C.) claimed the remaining 49.9%.
However, just because foreclosures are concentrated geographically, that doesn't make them less important to homebuyers around the country.  There's been more than 1.4 million foreclosure filings in the last 12 months and that's a figure that can't be ignored.
Distressed properties now play a role in one-third of all home resales.
Therefore, if you're in the market for a foreclosed home, here's a few things to keep in mind.

1. Properties are usually sold "as-is" and may not be up to living standards. Be sure to physically inspect the home before buying it.
2. Buying a home from a bank is rarely as streamlined as buying from an individual homeowner. Be prepared for delays and long closings.
3. Foreclosures aren't always listed for sale publicly. Ask your real estate agent how to access the complete foreclosure inventory.

 In order to use the federal homebuyer tax credit, you must be under contract for a home by April 30, 2010 and closed by June 30, 2010.  That doesn't leave much time to find a bank-owned home and make it to closing.  If you're serious about buying foreclosures, it's probably best to start your search soon.

Household Safety Tips : Space Heaters

For spot and room heating, homeowners often turn to portable space heaters.  Often, it's cheaper and faster to heat a small space with a heater than it is to raise the entire home's temperature by a few degrees.
But space heaters can be dangerous.
According to the National Fire Protection Association, space heaters were responsible for a large percentage of overall fire-related damages in 2006, including:

• 43% of home heating-related injuries
• 51% of home heating-related property damage
• 73% of home heating-related civilian deaths

Clearly, as compared to central heating systems and fireplaces, electric space heaters cause a disproportionate amount of in-home damage.  This is why it's important to be safe when using them.
So, here's some basic space heater tips to follow at home:

• Never place anything flammable within three feet away of a space heater
• Never use an extension cord on a space heater
• Turn space heaters off when leaving a room or going to bed

Furthermore, make sure your space heater bears the label of a recognized testing laboratory such as Underwriters Laboratory.
Remember to test your smoke detectors monthly.
Source Heating Safety Tips National Fire Protection Agency

Mortgage Approvals Are Getting More And More Scarce

The economy's improving but lending standards are not. Nationally, banks are making mortgage approvals harder to come by.

Underwriting guidelines are tightening.

The data comes from the Federal Reserve's quarterly survey to its member banks.  The Fed asks senior bank loan officers around the country to report on "prime" residential mortgage guidelines over the most recent 3 months and whether they've tightened.

For the period October-December 2009:

• Roughly 1 in 4 banks said guidelines tightened
  
• Roughly 3 in 4 banks said guidelines were "basically unchanged"

Just 2 of 53 banks said its guidelines had loosened.

Combine the Fed's survey with recent underwriting updates from the FHA and generally tougher standards for conventional loans and it's clear that lenders are much more cautious about their loans than they were, say, in 2007.

Today's home buyers and would-be refinancers face a bevy of new borrowing hurdles including:

• Higher minimum FICO scores
  
• Larger downpayment requirements for purchases
  
• Larger equity positions for refinances
  
• Lower debt-to-income ratios

So, if you're on the fence about whether now is a good time to buy a home, or make that refi, consider acting sooner rather than later.  It doesn't necessarily matter that mortgage rates are low, or that there's an up-to-$8,000 home purchase tax credit for households that qualify.  With each passing quarter, fewer and fewer applicants are eligible to take advantage.

7 Ways To Protect Your Credit Score For Better Mortgage Rates

Visit msnbc.com for breaking news, world news, and news about the economy

As mortgage lenders tighten approval standards nationwide, the importance of a good credit score is rising.  Credit scores not only make the difference between a mortgage approval and mortgage turn-down, but they also play a large role in determining your actual mortgage note rate.
In the 3-minute piece, the NBC Today Show talks about 7 ways that homebuyers ruin their credit -- often by accident.  Some of the highlighted mistakes include:

• Closing open credit cards
• Making appliance buys on credit prior to closing
• Asking creditors to lower credit balances prior to closing

In general, a 740 FICO will insulate a borrower from the higher costs and/or rates associated with low credit scores.  Below 740, though, every 20 points adds to the damage.  Watch the video and apply what you can to your own situation.  The more you know, the more you can save.
HTML > BODY

A Parents' Guide to the Middle School Years

A New Book from Expert Joe Bruzzese Raising kids is tough, but one could argue that the middle school years are the most difficult. Author, coach, teacher, and parent, Joe Bruzzese, has chimed in on the subject and it's no surprise that people are listening. Be sure to watch his recent interview on ABC's Good Morning Maryland.


You may be asking yourself, "So, what makes Mr. Bruzzese an expert on the middle school years?"

For starters, Bruzzese has worked for the last 15 years at helping kids with their relationships at school and at home. With a Master's degree in education and a national athletic coaching license, he co-founded Thinking-Forward, a company that provides both coaching services and parent presentations. Joe also holds a position of professorship in the Graduate School of Education at the University of California Santa Barbara.

For many reasons, Bruzzese says that the middle school years pose the biggest challenge for both kids and parents. Acting as a bridge between childhood and adulthood, everything in their world seems to change during middle school. Adding to this challenge is that the world itself has changed tremendously since most of us were teenagers. From the Internet to cell phones, technology has added a whole new wrinkle to the process

Bruzesse is convinced that the key to a healthy middle school experience for children is two-fold. It is not only about the child's transition from dependence to independence, but also your transition from authoritarian to coach.

Some of the topics Bruzzese addresses in his book, A Parents' Guide to the Middle School Years, are making friends at school, relating to teachers, mastering academics, balancing school with extra-curricular activities, keeping kids safe, and maintaining a sense of family.

If you have a child who's approaching the middle school years, we suggest a proactive approach. And there's no better place to start than by receiving a little advice from an expert. To learn more, visit Joe Bruzzese online at http://thinking-forward.typepad.com/my_weblog/

Sense of Security

Not Protecting Your Home Can Cost You Burglary is a fact of life. It happens every day, often to people who think it'll never happen to them. In fact, the number of burglaries is on a steady rise, climbing nearly 4% from 2004 to 2008...and 6% since 1999.

And of the more than 2 million burglaries reported in 2008, 70% took place in residential homes rather than businesses. Those burglaries averaged more than $2,000 in stolen items, adding up to nearly $5 billion in lost property in one year alone!

Despite these alarming statistics, you're not at the mercy of the would-be burglars. Believe it or not, it's not fate that determines whether your house is burglarized. Taking the right steps...and avoiding others...can significantly reduce your risk.

How to Protect Your Home
Recent studies (including the Greenwich Study of Residential Security conducted by Drs. Simon Hakim, Gideon Fishman and Yochanan Shachmurove) have found that alarm systems are the single most effective way to reduce the risk of burglary. In addition, studies have noted that houses near wooded areas or in areas with easy access to highways tend to get targeted more often. If you're in the market for a new home, you may want to consider these factors.

If you already live in a house or want to purchase a house that fits that description, don't fear. You'll just want to take extra precautions, such as clearing the bushes and branches away from windows and entrances, installing fake or real security cameras in prominent places so potential thieves will see them, and maybe even starting up a neighborhood watch program.  In addition to those tips, the following steps can help you protect your home and provide a sense of security for your family.

What Should You Do?
- Lock doors and windows.
- Keep garage and tool shed locked.
- Clear obstructions in your yard, like bushes near windows, that might conceal a burglar.
- Change your locks when moving into a new house or apartment.
- Use exterior lighting around your home, especially motion detecting lights that can come on without notice and surprise a would-be burglar.
- Use a timer to turn lights on in your home when you're out of town.
- Even if a stranger asks to use your telephone for an emergency, say no. Instead, offer to make the call for them while they wait outside.

What Should You Avoid?
- Avoid keeping large sums of money in your house, but if you have to, don't brag about it even to close friends
- Don't leave notes on your door with information about where you are or when you'll return.
- Don't hide a key, especially in obvious places. Leave your spare house keys with a trusted neighbor instead.
- Keep expensive electronic equipment and other high-price items out of site from the windows.
- Don't answer personal questions on telephone surveys that may give out information about your possessions or your schedule (e.g., what hours you work or when you get home every day).
- Never let a service representative from a utility company enter your house unless you have an appointment or can verify identification.
- If you use social networking sites like Twitter and Facebook, don't broadcast that you're going on vacation or when you'll be away for a trip. Wait until you get home, and then post the pictures or make posts about it.

For more help with your home's security, you should seek advice from a professional security provider. Be sure to tell them about your specific concerns and ask how you can best address them.

The Clock is Ticking!

Time is Running Out for Significant Savings!

Attention home buyers! Waiting to buy a home could cost you nearly $20,000 or more over a seven-year period if you time your purchase incorrectly. While the actual impact will vary depending on purchase price, the impact will certainly be significant because of stimulus programs scheduled to end in the coming months.

Economic turmoil and the real estate bubble have created significant opportunity for all those seeking to capitalize on the situation at hand. YOU Magazine will address the real estate purchase market and what people interested in both buying and selling a home need to know this month to take advantage of the current market conditions.

We also consulted with Michael J. Maher of "The Maher Team," one of the busiest agents in the country who sold 216 homes in 2009. With a degree in mathematics, he knows his numbers and the impact on both buyers and sellers.

As little as a few years ago, it would have almost been incomprehensible to expect that actions from Washington would impact decisions involving the purchase and financing of real estate. Well, that was then and this is now and the decisions people make or don't make stand to impact wallets across the country.

Before You Buy – Things to Consider

The pressure is on to buy in the first quarter of 2010, so what should buyers focus on before pulling the trigger? Maher recommends that buyers focus on three things that are either expensive to fix later or unable to change without buying another home. His three primary areas to focus on are what he calls the three Ls: "Location, Lot and Layout."

When considering location, use technology like GoogleMaps™ before visiting a home to save both time and gas. Mapping allows you to view the property from different angles, see if the home is on a busy street, or if it offers the other requirements you need. For example, if you need a large yard where the kids or dogs can play, a tool like GoogleMaps™ will help you eliminate some homes immediately.

While it is relatively easy to get caught up in the aesthetics, don't do it. Overlook items you can change later like paint, carpet and other cosmetic details. Narrow your focus down to two or three homes and "all things being equal, focus on location, lot and layout."

Selling a Home?

If you are selling a home and want to make sure you can get it off the market for time crunched buyers, remember that today is what Maher calls a "price war beauty contest." Sellers need to be focused on having their home priced competitively and making it most appealing upon inspection. Sellers also should consider paying for a home warranty to alleviate any concerns cash-strapped buyers may have about paying for repairs after closing.

More than anything else for both buyers and sellers this year, Maher suggests that people not let the money savings opportunities pass them by. "Anyone that qualifies is in a no-lose situation – they are buying at the bottom of the market, economically, historically, seasonally, market-wise and interest rate-wise. The perfect storm has arrived and the pearls and treasures have floated to the surface."

Gifts from the Federal Reserve Are on the Clock

MBS Purchase Program
Mortgage rates have been artificially low the past fourteen months due to assistance from the Federal Reserve and their mortgage backed securities purchase program. Regardless of the expert, when asked what the impact has been to lowering rates, the range is from 0.50-1.00% or potentially more. The Federal Reserve reiterated in its January statement that they will be ending the program on March 31st.

While it is uncertain to what degree interest rates will immediately rise starting April 1st, the overwhelming trend will be higher. Many experts are predicting that rates will start to rise in advance of April 1st.

Tax Credit
Low mortgage rates are not the only stimulus program ending in less than three months. Credited for boosting a major share of home sales at entry level, first time home buyers have been taking advantage of a tax credit of up to $8,000 for over a year.

Repeat purchasers were also given incentive in November with the availability of up to $6,500 in post-closing cash. Tax credit qualifying buyers have until April 30th to get under contract and must close by June 30th. If home buyers miss either date, it will be a costly one.

HUD and the FHA Tighten Up
HUD announced in January that the upfront costs to obtain an FHA mortgage are going up for any applications received April 5th or later. The cost of the up-front mortgage insurance premium (MIP) will increase for all case numbers effective April 5th by 0.50%, from 1.75% to 2.25%.

What Waiting Will Cost You
The costs of missing out on the combined incentives add up quickly for those who fail to act by the deadlines. The first incentive scheduled to end will impact buyers on a monthly basis in the form of higher monthly payments. On a $200,000 mortgage, a 1.00% increase to interest rates could increase a monthly payment by $125 a month or $10,500 over a seven-year period. Obviously, the longer the loan remains in place, the greater the impact of the potential loss.

The second potential loss that will be incurred would be waiting to obtain a mortgage guaranteed by the FHA. In the same example of borrowing $200,000, the upfront cost would be an additional $1,000, or .50% of the amount borrowed. While this cost may be financed, the impact to a monthly payment would also be an increase of approximately $5 a month and have to be accounted for later upon the sale of the property.

Finally, the third potential cost in waiting will be the end of the tax credit for qualified buyers of a primary residence, up to $6,500 for repeat buyers and up to $8,000 for first time home buyers.

Add all this up and the cost of choosing to wait could run up to nearly $20,000 or more depending on the purchase price of a home and the type of mortgage applied for. So, even if someone believes that home prices may fall from where they are today, even with a modest decline in price, the cost of waiting could outstrip any benefit of finding a home for less.

What Now?
The first step for anyone in shopping for a home is to reach out to Ginger Proffitt (me).  I will assist in getting you pre-approved and knowing what you can qualify for will minimize any stress from a financial perspective and let you focus your attention on finding the perfect home.

Courtesy of Black & Decker, energy-conscious homeowners now have another way to conserve natural resources.

Introducing the Lights Out Autoswitch, a 135-degree, motion-detecting device that turns the lights on when people enter a room, and subsequently turns them off after everyone has left.  The timer can be set at 1 minute, 5 minutes, 15 minutes, or 30 minutes. 

Use it in bedrooms, home offices, children's playrooms and anywhere else a person may leave the lights on.

Best of all, the device is easy to install.

The Lights Out Autoswitch runs on 3 AA batteries and slips right over an existing toggle light switch. There's no electrical wiring or assembly required and the product ships with a 2-year warranty.

The Lights Autoswitch is available on Amazon.com for $23.

Simple Real Estate Definitions : Short Sale

A "Short Sale" is when a home seller sells his home for a lesser amount than what is owed on his mortgage, and the mortgage lender agrees to accept the lesser amount in lieu of a full payoff.

By way of example, a Short Sale may be appropriate for a home seller whose mortgage balance is $250,000 but whose home wouldn't sell for more than $220,000.  Rather than pay the $30,000 difference to the lender at the time of sale, the seller enters into an agreement with the lender by which all sale proceeds are paid to the bank and the deficient balance is forgiven.

Short Sales are a preferable alternative to foreclosure but the process still harms both parties. For one, the seller is penalized with a derogatory tradeline on credit for not fulfilling a mortgage obligation. And, two, the lender is forced to take a loss on a mortgage loan.  Versus an executed foreclosure, however, Short Sale damages are relatively limited on both sides.

For this reason, Short Sales are sometimes considered "the economical alternative" to default.

The process of getting a Short Sale approved varies from lender-to-lender and can be time-intensive. Home sellers should not go at it alone -- speaking with a real estate agent about the proper protocol is usually the best place to start.  And sellers should be aware of how a Short Sale on their credit can impact future borrowing.

Current Fannie Mae guidelines prevent short-selling homeowners from obtaining new mortgage financing for a period of 2 years.

Shrimp and Avocado Salad

Shrimp and Avocado Salad


1/2 cup fresh lemon juice
2 tsp. honey
1 TBSP Dijon mustard
1 shallot, chopped
1 cup extra virgin olive oil

Mix together first four ingredients. Slowly blend in oil until well blended.

1 lb. cooked shrimp
1 lb. jicama, peeled, julienned
1 pkg. frozen corn, thaw and drain well, slightly brown in skillet with small amount of oil.
1/2 cup flat-leaf parsley, chopped
1/2 cup cilantro, chopped
3 Hass avocadoes, peeled, and diced
Salt and Pepper to taste.

Mix together, lightly coat with dressing. Best served at room temperature (about 30 minutes). Dressing can be stored in refrigerator. Low Cal and Healthy!

The January 2010 Jobs Report May Lead Mortgage Rates And Home Prices Higher

On the first Friday of every month, the U.S. government releases its Non-Farm Payrolls data from the month prior. The data is more commonly known as "the jobs report" and it swings a big stick on Wall Street.

Especially now -- many analysts believe job growth is tightly linked to the future of the U.S. economy.

Therefore, when January's jobs report hits the wires at 8:45 AM ET tomorrow, home buyers would do well to pay attention. A net job reading that is much higher (or lower) than Wall Street's expectations can make a serious change in home affordability.

Wall Street expects that the economy added 13,000 jobs last month.  It would mark the second time in 3 months that the jobs report showed a net monthly gain.

In November 2008, the economy added 4,000.

Jobs matter to the economy for a lot of reasons, but one of the biggest is that when Americans are working, Americans are buying and consumer spending accounts for 70 percent of the economy.

Job growth spurs the economy and draws money to the stock market. Unfortunately for rate shoppers, that kind of stock market growth happens at the expense of the bond market which is where mortgage rates are made.

Good jobs data usually means higher mortgage rates.

Also, job growth can lead to higher home prices. This is because working homeowners are less likely to default on a mortgage versus non-working homeowners.  In this way, job growth helps hold foreclosures to a minimum which, in turn, suppresses the housing supply.

Less supply means higher prices for home buyers.

Mortgage rates are idling this morning in advance of tomorrow's data.  If you're shopping for a mortgage rate, the prudent play may be to lock your rate before the jobs data is released.  A jobs figure that's higher than the 13,000 expected could cause rate to rise sharply.