Great Travel Tip...

If your like me and my family, you use your time off to travel and see friends and family who live out of the area. One of the biggest problems we have is deciding what to do with our pets. I found a couple of great websites, they are PetsWelcome.com and VRBO.com and are a real lifesaver for pet owners! PetsWelcome.com is very easy to use.. all you do is put in the name of the city you are traveling to and it will give you the name of all the hotels around the area that allow pets. It maps your itinerary and shows where all of the pet friendly hotels are along the way. VRBO.com has vacation rentals offered by the owners and allows you to choose pet friendly properties. Make sure to use PetsWelcome.com and VRBO.com to plan your next trip!

Do you have the characteristics to be a home buyer?

Do you have the characteristics to be a home buyer?
Did not know you needed certain characteristics to be a home buyer, did you? Well, you do not really, but it definitely helps to have them because the following ones will help you determine if you will make a good home owner!

Characteristic 1: You conform to the market.
What do we mean by "conforming?" We mean that you have researched the market and have realistic expectations of what you can afford. On the other hand, if you are a potential buyer who says, "All these homes are overpriced so I am not going to pay that much money," then you are not really serious about owning a home. The market sets overall prices, not you!

Characteristic 2: You have savings!
Ideally, you have enough in savings in order to pay two to three months of mortgage payments. This is a reserve, and mortgage lenders love people who have the financial wisdom to prepare for the unexpected (job loss, illness, etc.).
Lenders can see that you are a minimal risk and are more willing to loan you money for a mortgage.

Characteristic 3: You love to do maintenance (or can at least tolerate it)
There is no doubt about it - you have to do upkeep on a home if you want to maintain or even increase the value of your property. There are windows to wash... a lawn to mow... and many minor repairs along the way. Some people love the challenge of this; others hate it. If you hate it, then home ownership is not for you.

Characteristic 4: You are employed with at least two years on the job.
One thing that lenders demand is a history of stable employment. So, ideally, you have at least two years of employment at the same company or, at least, in the same field.

Characteristic 5: You plan to stay in the area.
If you are uncertain whether you will stay in a neighborhood or city, then it is a wise idea to put off home ownership for the time being. If you do buy a home, you could be forced to sell at a "fire sale" price and not have enough equity to pay commissions, etc. Of course, you can rent out your home, but, frankly, most sellers find this a tremendous hassle and a drain on their time and emotions.

Make it a great day,

Mike
(650)766-8500
mike@mikervin.com

When buying a home, plan for closing costs!

Sometimes in the excitement of purchasing a new home, buyers forget to plan for closing costs and the amount can be a shock on the signing day. So, plan for closing expenses ahead of time. You will need to write a check for such items as taxes, title insurance, prepaid homeowners insurance, points, lenders' fees, etc. Closing costs can range anywhere between 2% to 3% of the selling price of the house. The best way to prepare for this day is to get a closing cost estimate from your lender very early in the loan process. That way, you will not be surprised and can save up the amount you need and will be able to write the check without suffering an emotional meltdown! I will be happy to prepare a closing cost estimate for you. 

Feel free to contact me.

Make it a great day,

Mike
(650)766-8500
mike@mikervin.com

What are the rewards for buying a home?

What are the rewards for buying a home? Beyond the joy of owning your own property and creating a home for your family, there are several potential financial rewards earned through home ownership. The first is appreciation. Despite the recent "mortgage meltdown" and decline in prices, historically your home is worth more when you sell it than when you bought it. That is why a home purchase is considered a great long-term investment. Financial flexibility is another benefit that comes from appreciation. When your home appreciates, you can sell it and use the profit to buy a bigger and better home... tap into the equity (what your home would sell for minus what you owe on the mortgage)... pay college tuition for the kids... or use it to fund your retirement. Another benefit is leverage. Buying a home allows you to use borrowed money (the mortgage) to profit on later price increases (appreciation) on property you have not paid for. Finally, there is the great benefit of tax breaks! You can deduct property taxes and mortgage interest and keep up to $500,000 of gains! All in all, home ownership is a wise investment in your personal and financial future!

Make it a great day,

Mike
(650)766-8500
mike@mikervin.com

What Are the Risks of Buying a Home?

What are the risks of buying a home? Home buying is an investment. And, as with any investment, there are certain risks you need to consider (although, overall, home ownership is one of the best investments you can make). Review the following risks to make sure you are ready for the responsibility of home ownership. Risk 1: A decline in value As we have seen in the recent "mortgage meltdown," the value of a home can decline. Although, historically, this does not happen often, it still tells you that there is no guarantee that the value of your home will appreciate. Over the long run, however, home prices do tend to appreciate, and home ownership is far less risky than the stock market! Risk 2: Maintenance costs It costs money to maintain a home - paint, siding, roof shingling, heating, ventilation, and air conditioning costs, etc. That means you need to have the income to pay for routine maintenance costs as well as the inevitable big-ticket items that come with long-term home ownership. Risk 3: The loss of other investment opportunities In the short run, alternative investments like stocks, bonds, etc. may give you a better return in less time if their value rises faster than that of the homes in your areas. In such a case, you might do better as a renter or investor. However, keep in mind that, as stated above, this is a short-term strategy.       Risk 4: Less flexibility It is a fact that a home ties you down to a specific neighborhood and city. Many people like this fact because it allows you to "set roots" in a community. However, home ownership does not make it easy for you to take a new job elsewhere or move to a different location. And, if you have to sell in a hurry due to a divorce, job loss, etc., then you can take a heavy financial hit. Finally, if you have a large mortgage payment, it can make it difficult for you to invest money else where (savings, investments, vacations, etc.). If you are willing to shoulder those risks, then home ownership is for you!

Please contact me regarding interest rate, loans in general, or any other questions.
Mike
(650) 766-8500

http://www.bayareahomebuyersinfo.com/

What is a major mistake you should avoid in buying a home?

What is a major mistake you should avoid in buying a home? Actually, it is a simple one - not investigating the neighborhood in which the home is located! Now, the house may be beautiful, but is the neighborhood? It definitely pays to find out before you buy that home! So, check it out the neighborhood beforehand. Check it out during the day... the late afternoon (when kids tend to gather)... in the evening... and on weekends. Also, be sure to talk to a few neighbors. They can tell you about any general problems with the neighborhood and any specific problems with home owners. You definitely do not want to live in a house next to the neighborhood "nut." Also, if there are empty spaces on the block, find out what the zoning is for those spaces. If they are zoned for residential, no problem! However, if they are zoned for commercial uses, you may end up living close to a fast food place and all the traffic that comes with such restaurants. Bottom line: always evaluate the neighborhood as well as the house!

Consider a Vacation Home for Fun Times, Investment Returns- Bay Area Real Estate

Glorious summer days at the lake…the grandkids frolicking at the shore…or a warm fireplace as you wait for the perfect powder at your ski retreat. A vacation home builds memories and it can be a great investment.

In most vacation hot spots, second-home prices are at five-year lows. Some in California and Florida can be had for 47 percent below their 2006 price. Bargains are likely to be available within a couple of hundred miles from where you live.

* There’s more to a vacation place than fun and up-front bargains. In the future, the home will be an appreciating asset. Economists say prices are already rising and will continue to rise for at least the next five years.

* The home is a better deal if it’s rentable. The rental potential puts money in your pocket, but it also increases resale value.

* The typical vacation property rents out about 17 weeks a year, according to HomeAway.com. Ask a property management company how much comparable properties rent for by the week. While the rent won’t pay all your expenses, it will help with the mortgage, utilities, taxes and maintenance.

* You will meet and become friends with an entirely new group of people when you own a vacation home. Lifelong friends are made with neighbors and in the community.

* You’ll have tax benefits. Rent it out for less than two weeks, and you won’t have to report the income to the IRS.

* If you rent the home for two weeks or more, you can deduct operating costs, such as maintenance, cleaning, mortgage interest and property tax. You allocate the write-off between personal and rental use.

* As with any rental property, distance is important. Less than 200 miles from your primary home is best.

Finance

* When the property is classified as a second home, you’ll get about the same interest rate and terms as on a home loan, according to HSH Associates.

* If you need the rental property income to qualify for a mortgage, it will be classified as an investment property. The down payment will be higher and the interest rate will be about 1 percent more.

Please keep in mind that I’m always available to serve you and others with financing needs.

For more helpful resources visit BayAreaHomeBuyersInfo.com!

Should I Pay Off My Mortgage?- Bay Area Real Estate

Homeowners may dream of the day they can pay off the mortgage. Financial advisors across the country say they are hearing questions all the time about the wisdom of retiring the mortgage early.

The pros:

* The obvious reason to do it: Paying off the home loan could save tens of thousands of dollars in interest during the time you would make payments.

* The second reason is the peace of mind you have from owning your home free and clear.

* Most experts recommend owning your home free and clear before you retire.

* If you still have a higher interest mortgage, paying down your principle will make refinancing easier.

The cons:

* Some financial needs should come first: Max out your 401(k) contributions. Pay off credit cards. Create a 6-month emergency cash fund.

* Mortgages are cheap money. When you pay down your mortgage or pay more every month, you are probably hoping for those big dollar savings on interest. But remember these are future dollars and they will be worth less 20 years from now. Keep your higher value dollar today and pay the bank its lower value dollar in the future.

* If you plan to move to another city or trade up or down, it’s not wise to pay off the mortgage. You would tie up your money in a home you might not be able to sell very soon when you want to buy another one.

* The mortgage interest tax deduction doesn’t help everyone. If you are in a high tax bracket, it’s more valuable. If you are retiring or in a lower tax bracket, it’s not worth as much.

* Check to see if the investment you could make with the payoff money would earn more interest than what you are presently paying on your home loan. A 50/50 stock/bond portfolio has historically earned 8.2 percent in the long term, but might only make 6 percent now, according to Money magazine.

Their conclusion The Money experts say that if paying off the mortgage would give you great satisfaction and a sense of security, go ahead and do it.

Please keep in mind that I’m always available to serve you and others with financing needs.

For more helpful resources visit BayAreaHomeBuyersInfo.com!

Houses are More Affordable Now Than In The Last 35 Years-Bay Area Real Estate

Statistically speaking, this is the best time to buy a home since your parents took the plunge 35 years ago, according to the housing affordability index.

 

But maybe you’re tired of hearing about statistical matters and just want to know how this affects your pocketbook.

If your parents bought a home in 1963, it probably cost them 43 percent of your dad’s income to finance it. If they were buying that same home right now, it would take only about 22 percent of their monthly income to finance it.

The National Association of Realtors today recommends an average of 25 percent of an individual or family pretax income. That means no more than 25 percent can be spent on mortgage payments, taxes, insurance and utilities.
Because the affordability index is now 22 percent, a home buyer would be in a better position than the association recommends.

Still, people who need a home may be confused about whether this is a good time to buy. They wonder if it will cost even less to buy a home in the future.

That isn’t likely to happen, because interest rates and inflation have a big impact on the true cost of buying a home. And both are going up.

The chief economist at Moody’s Analytics says, “Based on incomes, this is as affordable as it gets. If you can get a loan, these are pretty good times to buy.”

For renters, that is especially true. Those who are renting a nice apartment or home for $1,000 a month, for example, will typically experience a 3 percent rise in their rent per year.

At that rate, over the next 10 years, they would pay a total of $137,567 in rents.

Please keep in mind that I’m always available to serve you and others with financing needs.

For more helpful resources visit BayAreaHomeBuyersInfo.com!

Six Unobvious Reasons to Recycle- Bay Area Real Estate

1. Protect your home from hazardous waste. The average American home accumulates up to 20 pounds of hazardous waste each year. Even more frightening, usually 100 pounds of waste is stored in cabinets, the garage, closets, basements, and other storage spaces in the average home.

 

2. Help the community and local job options by donating to the Goodwill, which collects electronics as well as most other things, to recycle or sell. They use the profits to help fund job training and employment opportunties in the local community.

3. You can hold a recycling event as a fundraiser for one of your favorite causes (a local school, sports league, church, etc.) with the help of www.recyclingforcharities.com

4. According to the Environmental Protection Agency, American households own an average of 24 electronic products that could be potentially donated or recycled. 85% of them end up in landfills instead.

5. Recycling is less expensive than sending trash to a landfill. According to www.ecocycle.org, recycling instead of landfilling saves $55 per ton, saving you money, along with the environmental benefits.

6. Stimulate the economy by creating jobs. Eco-Cycle states that “For every one job at a landfill, there are ten jobs in recycling processing and 25 jobs in recycling-based manufacturers. The recycling industry employs more workers than the auto industry.”

Please keep in mind that I’m always available to serve you and others with financing needs.

For more helpful resources visit BayAreaHomeBuyersInfo.com!

Advantages of Paying Points- Bay Area Real Estate

"Why pay points when financing my home?" 

This is one of the most frequently asked questions when considering locking an interest rate. 

Here are a few good reasons: 

• Points paid on a purchase transaction are a tax deduction in the year of the close of escrow.

• Paying points can dramatically reduce the interest rate on the loan.

• Lowering the rate lowers the payment, lowering the income needed to qualify.

• A lower rate saves the buyer thousands of dollars over the life of the loan.

• There’s never been a better time to buy down a rate.  

• Historically .50 point lowered the rate by .125%
• Now .50 point lowers the rate by nearly .20%

Please keep in mind that I’m always available to serve you and others with financing needs.

For more helpful resources visit BayAreaHomeBuyersInfo.com!

FHA Premiums Increased This Spring- Bay Area Real Estate

Federal Housing Agency (FHA) loan premiums have increased marginally starting on April 18.  The annual mortgage insurance premium raised a quarter of a point for borrowers, applying to all FHA loans taken on or after April 18.  The increased premium does not apply to loans made before the increase date.

 

These government loans are extremely popular, and the agency does not believe this will have a large effect on the overall affordability of the loans.

According to the New York Times, “the new rate structure would raise the cost of a $157,000 mortgage, a typical F.H.A. loan amount, by about $33 a month, or $396 a year.”

FHA loans have becoming increasingly popular over the past year, with about 30 percent of home purchases made with them.  Just five years before, only about 6 percent of home purchases were made with FHA loans.

Call me to see how these changes could affect your home ownership planning and please keep in mind that I’m always available to serve you and others with financing needs.

For more helpful resources visit BayAreaHomeBuyersInfo.com!

5 Things to Think About When Looking for Your Dream Home-Bay Area Real Estate

While on the hunt for a perfect home, it can be immensely helpful to create a wish list of sorts. This can help you and your real estate agent obtain a clear picture of what type of home would best suit you.

Some things to consider:

1. Move-in ready or fixer-upper?

Making a home “your own” can make fixer-uppers an attractive option, along with the lower cost. Making a mark on your new home via renovations. Take some time to think about what homeownership means to you, and whether you are interested in renovation.

2. Upgrades

Certain upgrades in a home, such as marble or granite counters, are often coveted by buyers. Consider what type of upgrades are important to you – energy-efficiency, professional grade appliances, luxury tiling? Make a list and show your Realtor.

3. The Yard
What type of backyard are you looking for, and how important is it to you? Think about low versus high maintenance yards, the amount of space you’d like, and what kind of yard would best suit your lifestyle.

4. Swimming Pools
For some homebuyers, having a swimming pool can be a dealbreaker. If this is something that you really desire in your dream home, make that clear to your real estate agent so that they can narrow the search for you.

5. Schools in the Area
Last but certainly not least, the quality of the schools in the area of a dream home should be an important thing to research. Ask your Realtor for information about schools in the area of your search, and comparisons between them. This information is easily obtained, and real estate agents will be more than happy to show you school scores and more. Also consider private schools, if that is an option for your family.

Please keep in mind that I’m always available to serve you and others with financing needs.

For more helpful resources visit BayAreaHomeBuyersInfo.com!

How To Get Your Garage In Order- Bay Area Real Estate

Are you ready to get your garage in order?  If so, don’t panic!

Here are some steps you can follow.

1.      Think about how you currently use your garage and decide how you’d prefer to use the space. Maybe you use it for storage but you’d like to do woodworking or other projects there.

2.      Make a list of the types of stuff in your garage (sports and camping gear, gardening supplies, etc.) Now make a list of what you’d like to keep in there after it’s been organized.

3.      Set a deadline for getting the job done. Perhaps tie it to an event so you’ll have a better shot at achieving your goal.

4.      Assemble trash bags and/or containers, protective gloves, storage boxes, marking pens, and storing bins.

5.      Designate areas for “keep” and “don’t keep”. You can even subdivide this into “trash”, “give away,” and “sell.” Plow forward systematically instead of jumping around from pile to pile.

Please keep in mind that I’m always available to serve you and others with financing needs.

For more helpful resources visit BayAreaHomeBuyersInfo.com!

Home Repairs That Maximize Your Profits- Bay Area Real Estate

Perhaps someday you may consider selling your home, and if so, you want to get top dollar for your home.

Here are some suggestions:

·         Paint inside and outside. Fresh paint is the most profitable improvement you can make. Indoors, use a light off-white. Outside, use neutral colors that fit the neighborhood. Avoid vivid colors such as yellow, pink or blue.

·         Install new light fixtures. Most homes can be updated with sparkling new fixtures.

·         Replace worn carpets and floors. Use neutral colors, such as light beige that goes with any furniture, and a thick padding. If you have hardwood floors, refinish them to bring out their sparkle.

·         Check the landscaping. Often all that’s needed are some fresh flowering plants, especially in the front yard where they’ll make a favorable impression.

·         Make those necessary but unprofitable repairs. If the roof looks bad, fix it. 

·         Obtain a professional inspection report. This reassures prospective buyers that your home is in excellent condition and discloses any known defects that you choose not to repair.

·         Clean and paint the garage.

Please keep in mind that I’m always available to serve you and others with financing needs.

For more helpful resources visit BayAreaHomeBuyersInfo.com!

Home Buyers Try to Beat "JUMBO" Loans Squeeze

By Linda Stern

WASHINGTON | Wed Apr 20, 2011 5:52pm EDT

WASHINGTON (Reuters) - Bethany and Karl Schreiber are hunting for a nice big house in the pricey Washington, D.C., suburbs and they are facing a deadline: In just a few months their third child will be born, and the tiny two-bedroom they've been inhabiting will officially get too small.

But there's a second deadline looming for them as well. Beginning on October 1, the government will dial back on the size of mortgages it guarantees in high-cost areas like San Francisco, New York and Washington.

After that, the maximum loan amount that Fannie Mae and Freddie Mac will back is scheduled to drop from $729,750 to $625,500. And that may make mortgages more expensive or harder to get for buyers like the Schreibers, who are shopping in the $700,000 range and would prefer to make a downpayment of 10 percent or less.

"If we wait a year, we may not be able to afford as big a house," Bethany said in an interview. "Rates and housing prices are probably going to go up."

The Schreibers concede their timing is mainly inspired by their own family circumstances. But others may be motivated to act now because of reduced government-backed loan assistance, housing experts say. Those programs were put in force as part of the stimulus package after the housing collapse.

"For people planning on exiting the market altogether (such as retirees), that is a compelling proposition," says Stan Humphries, chief economist at Zillow. Home sellers may have to be patient to get the price they want. The curbs on government-backed loans could, at the margin, reduce the available pool of buyers, he said.

MILLION-DOLLAR DWELLINGS

Anybody who wants a government-backed mortgage for a $1-million home after October 1 may have to come up with a $370,000 downpayment instead of $270,000, says Rob Chrisman, an independent mortgage banking consultant from San Rafael, California.

The deadline will mean most to upper-middle-class buyers and sellers in costly real estate markets where $1 million buys a nice house, but not a mansion.

To be sure, that part of the market is picking up. Real estate agents operating in tonier neighborhoods are reporting brisker business this spring than in recent years.

Sotheby's, which specializes in luxury homes, reports sales making double-digit gains for the first quarter of this year over last year. The National Association of Realtors reported that the sale of homes over $1 million were up 5.1 percent in March over the same month last year.

"We are seeing a normal recovery," said Jed Smith, managing director of quantitative research. "I'm sure somebody will accelerate their activity (because of the expected drop in government-backed loan limits), but I doubt you'll see a lot of acceleration because of that."

"That really isn't on anybody's radar," agreed Linda Chaletzky, the Schreiber's agent, and a specialist on Washington's tonier suburbs. "But things are hopping."

She said she is not worried about the loan clampdown,

"The mortgage industry will find a way around it, because they will have to. If they don't, they will go out of business," Chaletzky said. She expects private mortgage lenders to step in and fill that space when the government backs down.

BIG MORTGAGES

It was only in recent years that the loan limits went so high. Mortgages that are too big to be sold to Fannie and Freddie are termed jumbo loans and are backed privately. Until 2008, all home loans over $418,000 were considered jumbo loans. In that year, a stimulus-focused Congress twice raised the limit on loans the government would back in high cost areas, first to $625,500 permanently, and then to $729,750, temporarily.

Since then, Fannie and Freddie have backed an increasing share of that market. In 2010, so-called "jumbo conforming" loans, those over $417,000 and government-backed, made up 6.73 percent of loan originations, according to CoreLogic.

That top temporary limit was extended twice, but is expected to expire at the end of September.

When that happens, lenders who want to make loans over $625,500 will have to hold onto the mortgage themselves or find private investors to buy them. And while an active and hungry secondary market for these jumbo loans has yet to materialize in the post-crash world, there's some evidence that lenders are preparing to move into that space and pick up any slack that the government leaves.

"There's plenty of money out there," said Steve Hopps, chairman of the California Mortgage Bankers Association.

Private lenders are preparing to step in, according to Guy Cecala of Inside Mortgage Finance, a research firm. In the last quarter of 2010, private lenders originated more loans over $417,000 (the traditional jumbo market) than did government agencies, he said.

The lower loan limits will leave about $10 billion more in loans for private lenders to handle, reckons Cecala, and he expects lenders to go after the market aggressively.

BIGGER DOWN PAYMENTS

Investors like the fact that jumbo loans tend to be safer and more profitable than smaller ones. The privately-backed mortgages require bigger downpayments (currently about 30 percent of the home's value, instead of the 20 percent more typical in less expensive loans), which adds security.

Also adding to their allure, the loans carry higher interest payments; the spread between the so-called conforming loans backed by Freddie and Fannie and jumbo loans is running about 0.5 percentage points higher, said Cecala. Furthermore, a higher proportion of jumbo loans are made on a variable rate basis, which is less of burden for holders, Cecala said.

Going still higher in the homes market, there will be less impact from the shrinking jumbo. Many buyers of multi-million dollar homes do all-cash deals and are relying on cash more than ever before, according to Stan Smith, a real estate agent who works in Beverly Hills area.

The biggest impact might be limited to that space and those neighborhoods occupied by people like the Schreibers -- folks who see themselves as middle class but in very expensive areas.

"I see borrowers, if they want that kind of loan, paying a little more," says Chrisman. "But it's not going to be a life changing event for a couple of orthopedic surgeons in Beverly Hills."

(Reporting by Linda Stern; Editing by Richard Satran)

Please keep in mind that I’m always available to serve you and others with financing needs.

For more helpful resources visit BayAreaHomeBuyersInfo.com!

Home Projects That Pay- Bay Area Real Estate

If you’re thinking about spending your money on a remodeling project, it’s comforting to know that the improvement will pay you back when you sell your home. To help you make the tough calls on where to spend, “Today’s Homeowner” magazine identifies some projects that will return a substantial portion of their cost if you move.

1.      Minor kitchen remodel

2.      Bath remodel

3.      Deck addition

4.      Siding replacement

5.      Home office addition

6.      Window replacement

Luxuries that are likelier to improve quality of life rather than resale value are built-in media center, extra fireplace, hardwired security system, glassed-in porch, screen porch, gazebo, fiberglass pool, concrete pool, hot tub, tennis court, upgraded landscaping, vinyl-lined pool and sauna.

Please keep in mind that I’m always available to serve you and others with financing needs.

For more helpful resources visit BayAreaHomeBuyersInfo.com!

 

Maintaining good credit - Bay Area Real Estate

Here are a few simple rules for keeping your credit in good shape:

·         Pay your bills on time. Most lenders look at whether you’re on time or late with your bills. If you’re currently behind, catch up before applying for credit.

·         Don’t be too close to your credit limits. The more cards you have close to the limit, the more of a risk you are to lenders.

·         Cancel any credit cards that you don’t use. If you have several, even with zero balances, you’ll have difficult time getting additional credit.

·         Get a copy of your credit report and correct any errors on an annual basis. One in 4 credit files contains errors. Call TRW, Equifax, or Trans Union for obtaining a copy of your credit report. Be sure to dispute any errors by inserting up to 100 words on the report to explain your side of the story.

·         Find out how many inquiries are on your credit report. Every time you apply for a credit card, an inquiry is included. If too many credit card companies inquire at once, they may be suspicious about your intentions. If you have 5 or more inquiries in the past 6-8 months, wait a few months before applying for credit.

As a lender, I may be able to help you clear up any discrepancies you discover on your credit report.

Please give me a call if you have any financing needs or questions or visit www.BayAreaHomeBuyersInfo.com.

Tips for Managing Debt- Bay Area Real Estate

When it comes to managing your money, is your goal to get out of debt?  If so, what do you want to accomplish financially once you meet that goal?  Send your children to college?  Retire comfortably? 

To help you achieve your financial goals, here some tips.

·         To measure your financial health, compare your assets to liabilities.  Add up the worth of everything you own (bank accounts, investments, home, other personal property, etc.) and compare it to the cost of everything you owe (loans, auto loans, student loans, mortgage, all outstanding credit card balances, etc.).  A financially healthy person should have twice as much in assets as in liabilities.

·         To reduce debt, use some of your assets (such as savings) and reduce expenses so that you can pay more towards the debt.

·         If you need extra help dealing with debt problems, contact your local credit counseling office.

·         To keep your spending on track, establish a budget.  Record how you currently spend your money and then figure out how you can change your spending habits in order to achieve your financial goals.

Please keep in mind that I’m always available to serve you and others with financing needs.

For more helpful resources visit BayAreaHomeBuyersInfo.com!

Credit Card Tips- Bay Area Real Estate

As I’m sure you know, Americans are up to their ears in debt, and the credit card got them there!

Perhaps you’ll find these tips helpful for avoiding the credit trap.

·         Know your credit limit based on your income, amount of current debt, and credit history. Your total monthly debt shouldn’t exceed 38% of your monthly income.

·         Carry only the cards you need. Creditors look at how much you’re able to go into debt when they review your record.

·         Determine how much a credit card costs you with interest rate, annual fee, and grace period. Don’t forget the extra fees for cash allowances and late payments.

·         Consider joining a credit union to take advantage of their lower interest rates.

·         If you can’t make your payments on time or if you want to dispute a charge, contact your card issuer immediately and put everything in writing.

·         Don’t get fooled when card issuers lower your minimum payments. It only makes it easier for you to stay in debt and increases the total interest you’ll pay.

Your credit is vital for you now and in the future. If you are carrying substantial debt on high-interest credit cards, we can discuss options to reduce your payments.

Please keep in mind that I’m always available to serve you and others with financing needs.

For more helpful resources visit BayAreaHomeBuyersInfo.com!