Affordable housing and you

Real estate in Texas
The term affordable housing can mean many things. In Austin, for example, it could mean any single-family home that sells for under $200,000. In other areas of Texas, affordable housing might mean a $75,000 home.

Statewide, Texas REALTORS® help countless fellow Texans experience the benefits of homeownership, regardless of where you live or how much money you make. In addition, many Texas REALTORS® participate in specialized training to better equip themselves for helping first-time homebuyers.

Options abound for Texans who want to own their own home, but who might be strapped for cash or have yet to establish their credit. One is the Texas First Time Home Buyer Program, sponsored by the Texas Department of Housing & Community Affairs (TDHCA). It offers below-market mortgage interest rates for first-time buyers.

The Texas Veterans Land Board has a variety of attractive home-purchase programs for Texas military veterans and their spouses.

Source:TexasRealEstate.com

10 Ways to Prepare for Homeownership

1. Decide what you can afford. Generally, you can afford a home equal in value to between two and three times your gross income.

2. Develop your home wish list. Then, prioritize the features on your list.

3. Select where you want to live. Compile a list of three or four neighborhoods you’d like to live in, taking into account items such as schools, recreational facilities, area expansion plans, and safety.

4. Start saving.Do you have enough money saved to qualify for a mortgage and cover your down payment? Ideally, you should have 3.5% to 20% of the purchase price saved as a down payment. Also, don’t forget to factor in closing costs. Closing costs — including taxes, attorney’s fee, and transfer fees — average between 2 and 7 percent of the home price.

5. Get your credit in order.Obtain a copy of your credit report to make sure it is accurate and to correct any errors immediately. A credit report provides a history of your credit, bad debts, and any late payments.

6. Determine your mortgage qualifications.How large of mortgage do you qualify for? Also, explore different loan options — such as 30-year or 15-year fixed mortgages or ARMs — and decide what’s best for you.

7. Get preapproved. Organize all the documentation a lender will need to preapprove you for a loan. You might need W-2 forms, copies of at least one pay stub, account numbers, and copies of two to four months of bank or credit union statements.

8. Weigh other sources of help with a down payment. Do you qualify for any special mortgage or down payment assistance programs? Check with your state and local government on down payment assistance programs for first-time buyers. Or, if you have an IRA account, you can use the money you’ve saved to buy your fist home without paying a penalty for early withdrawal.

9. Calculate the costs of homeownership. This should include property taxes, insurance, maintenance and utilities, and association fees, if applicable.

10. Contact a REALTOR®. Find an experienced REALTOR® who can help guide you through the process.

Source Realtor.org

Home Lending Rates Falling Again

Daily Real Estate News


Rates on 30-year fixed mortgages fell to 5.14 percent for the week ended July 16, down from 5.20 percent a week before and 6.26 percent a year earlier, Freddie Mac reports.

Interest on fixed home loans has fallen in four of the past five weeks, and Freddie Mac economist Frank Nothaft says rate activity during that time has lowered the monthly payment on a $200,000 loan by $56.

Here’s a look at how other mortgage rates performed this week:

15-year fixed loans fell to 4.63 percent from 4.69 percent.
One-year adjustable-rate mortgages fell to 4.76 percent from 4.82 percent.
Five-year hybrid ARMs bumped up a notch to 4.83 percent from 4.82 percent.

Source: Grand Junction Free Press, Wyatt Haupt Jr. (07/17/09)

New kitchen luxuries make entertaining easy

(ARA) - Entertaining at home is the perfect way to spend time with your family and friends, as nothing beats relaxing and enjoying the beautiful summer weather with your guests. Unfortunately, hosting the party has always had one down side -- being stuck in the kitchen cleaning and cooking while others enjoy the festivities.



Now, there is hope for home entertainers. New kitchen innovations provide an easy way to entertain, while adding a gourmet touch to your decor. Spend the evening socializing instead of slaving away in the kitchen.



Luxury meets technology



Every homeowner wants (and deserves) a little luxury in their home, but especially in their kitchen. Appliances are beginning to look and act more luxurious by increasing their functionality through another popular home trend -- technology. Many appliances merge lavish looks with innovation to create the perfect addition for any kitchen. These new smart appliances go beyond their traditional functions, like heating food or keeping it cold. Instead, they perform greater tasks such as collecting recipes, quickly preparing meals and keeping the pantry stocked with automated, electronic lists.



The 36-inch induction hybrid cooktop from Electrolux can really speed up your cooking, which is great for parties, keeping you out of the kitchen and engaged with your guests. You can boil water in just 90 seconds, and its Perfect Set Controls allow you to store up to 25 programmed settings to immediately raise or lower temperatures so cooking can begin at any time -- without waiting or preheating. Just input the specific settings in advance for the dishes you’ll be cooking at your next bash, and you’ll be able to get your last minute prep finished while welcoming your guests.



Appliances once only found in restaurants are now making their way into home kitchens. Ovens and microwaves aren’t the only kitchen appliances that can keep food warm; warming drawers are the newest product to be included in today’s kitchens. Dacor’s Warming Drawers feature an electric touch pad with four different settings and temperatures. This way, you’ll be able to keep all of the dishes you made in advance warm and ready to serve throughout the duration of your soiree. And best of all, the drawers can be custom made to match the rest of the cabinets in your kitchen to ensure a consistent look throughout.



Functional faucets



Kitchens can look and feel sophisticated by making a few simple changes that will easily take the look of your kitchen from average to elegant.



Increase the sophistication of your kitchen by installing a faucet with a design that brings beauty into the small space of the sink. The new Woodmere pulldown faucet from ShowHouse by Moen features a traditional sleek design, making it a great focal point at the sink. As the first traditional pulldown faucet in the ShowHouse portfolio, its high-arc spout and S-shaped handle allow Woodmere to make a bold statement and impress your guests by adding an extra element of elegance to the kitchen. The single-mount design creates less clutter, making it an ideal choice for deluxe countertops, such as granite. Clean-up in and around the sink is also a snap when you’re getting ready for your partygoers to arrive.



Woodmere offers much more than style; it also offers increased functionality that’s ideal for completing any kitchen task. The pulldown wand features three functions: pause, spray and stream. The last thing you want when company arrives is a pile of dirty dishes in your sink from all of your party prep. But the combination of Woodmere’s features and unique, patented pause button makes washing dishes quick and easy so you can avoid the clutter altogether. The faucet is available in three different finishes -- Chrome, LifeShine Classic Stainless and Oil Rubbed Bronze, to coordinate with the rest of your kitchen.



No host or hostess should miss an entertaining event by being trapped in the kitchen to babysit the stovetop or deal with the clean-up that comes with having a party. Instead, by installing luxurious and technologically savvy products, you’ll be sure to have a summer full of easy, elegant entertaining. Who says you can’t have it all?



For more information on the Woodmere pullout kitchen faucet from ShowHouse, visit showhouse.moen.com or call (800) BUY-MOEN (800) 289-6636.



Courtesy of ARAcontent

Mortgage Rates Drop This Week

Interest on 30-year fixed mortgages, 15-year fixed loans, five-year adjustable-rate mortgages, and one-year ARMs all fell this week, according to Freddie Mac.

The average on 30-year financing slipped to 5.2 percent from 5.32 percent a week ago.
The 15-year mortgage declined to 4.69 percent, down from 4.77 percent.
Five-year ARMs were down to 4.82 percent from 4.88 percent.
One-year ARMs fell to 4.82 percent from 4.94 percent.

Source: Los Angeles Times (07/10/09)

© Copyright 2009 Information Inc.

Postal Stamps going up 2 cents!

WASHINGTON - Peel it and weep: It'll cost an extra 2 cents to mail a letter starting Monday.

The price of a first-class stamp will climb to 44 cents, though people who planned ahead and stocked up on Forever stamps will still be paying the lower rate.

It's the third year in a row that rates have gone up in May under a new system that allows annual increases as long as they don't exceed the rate of inflation for the year before.

Courtesy of Associated Press

What You Should Know When Shopping for a Water Heater?

ARA) – How’s your relationship with your household appliances? You open your refrigerator every day and run the dishwasher, clothes washer and dryer several times each week.

But how often do you think about your water heater? You use it every day, usually multiple times a day. When was the last time you thought about how much energy it consumes or how well it’s doing its job?

Heating water can account for 14 to 25 percent of the total energy consumed in your home, according to the U.S. Department of Energy. Choosing the http://www.hotwater.com">right water heater for your home and regularly maintaining it can help reduce your energy bills. What’s more, you can actually get a tax break for choosing an energy-efficient water heater.

Under the new American Recovery and Reinvestment Act of 2009, if you install a natural gas or propane water heater with an Energy Factor (EF) rating of at least .82, or 90 percent thermal efficiency, you could qualify for a tax credit of up to 30 percent of the total cost of installing the heater, including labor, up to a maximum of $1,500. In addition to the potential tax savings, many utility companies now offer rebates to homeowners who install new, energy-efficient water heaters.

So how do you choose the right water heater for your home? Here are some tips:

The Department of Energy advises you to consider several factors, including the type of fuel available to your home (gas, oil or electric), the size of your home, the energy efficiency rating of the water heater you’re considering, and the annual operating costs of different types of water heaters. The size water heater you need will vary based on the size of your home, how much use you anticipate it will get and the type of heater you’re considering.

It’s important to know the differences between standard water heaters and http://www.hotwater.com">high-efficiency models. For example, the Vertex high-efficiency water heater, produced by A. O. Smith, replaces the straight exhaust pipe found in standard gas models with an innovative helical coil inside the tank. Conventional heaters lose roughly 25 percent of their energy through the exhaust. Tankless heaters don’t fare much better, clocking efficiency levels of just 80 to 84 percent. The Vertex’s special design boosts efficiency to 96 percent, saving homeowners money on their gas bill and providing more hot water faster than conventional models.

Even if your water heater is currently working, if it’s an older, inefficient model, you could reap real cost benefits by replacing it with a more energy-efficient one. The average lifespan of a water heater is 12 to 14 years. If yours is approaching the end of its usable life, it’s a good idea to research your options and decide on a proactive replacement. If you find yourself without a functioning water heater and no plan for replacing it, you’ll be more likely to go for the quickest, cheapest option available – which might not be the best choice for your needs.

Five categories of water heater are now Energy Star rated, including high-performance gas storage, whole-home gas tankless, advanced drop-in or integrated heat pump, solar and gas condensing. For each type of water heater, the Energy Star rating can help you determine just how energy efficient a model is.

Finally, be aware that opting for energy efficiency doesn’t mean you’ll have to sacrifice performance in terms of how much hot water you’ll get and how quickly. In fact, modern energy-efficient heaters like the Vertex can produce more hot water, more quickly and for less money than other models of comparable size. The enhanced performance fits well into Americans’ busy lifestyles with high demand for hot water.
Courtesy of ARAcontent

5-year Commercial "TALF" Loans in Works

The Federal Reserve might compromise with commercial real estate owners and investors and lengthen the terms of the Term Asset-Backed Securities Loan Facility (TALF) loans from three to five years while upping the interest rate.

Commercial real estate interests have been pressuring the Fed to extend TALF loan terms, but the Fed prefers to keep them short as a tool to fight inflation. Real-estate investors say a longer term is critical because an extra couple of years will help stabilize the market, which faces a mound of debt coming due in the next three years.

Charging higher rates for longer terms, “as a compromise, seems like it meets the needs of both sides,” said Louis Crandall, chief economist at Wrightson ICAP LLC. “It’s the certainty of the funding, and providing certainty goes a long way to address those concerns.”

Courtesy of Realtor.org...Source: Bloomberg, Scott Lanman (04/08/09)

Does Moving Up Make Sense?

These questions will help you decide whether you’re ready for a home that’s larger or in a more desirable location. If you answer yes to most of the questions, it’s a sign that you may be ready to move.

1. Have you built substantial equity in your current home? Look at your annual mortgage statement or call your lender to find out. Usually, you don’t build up much equity in the first few years of your mortgage, as monthly payments are mostly interest, but if you’ve owned your home for five or more years, you may have significant, unrealized gains.

2. Has your income or financial situation improved? If you’re making more money, you may be able to afford higher mortgage payments and cover the costs of moving.

3. Have you outgrown your neighborhood? The neighborhood you pick for your first home might not be the same neighborhood you want to settle down in for good. For example, you may have realized that you’d like to be closer to your job or live in a better school district.

4. Are there reasons why you can’t remodel or add on? Sometimes you can create a bigger home by adding a new room or building up. But if your property isn’t large enough, your municipality doesn’t allow it, or you’re simply not interested in remodeling, then moving to a bigger home may be your best option.

5. Are you comfortable moving in the current housing market? If your market is hot, your home may sell quickly and for top dollar, but the home you buy also will be more expensive. If your market is slow, finding a buyer may take longer, but you’ll have more selection and better pricing as you seek your new home.

6. Are interest rates attractive? A low rate not only helps you buy a larger home, but also makes it easier to find a buyer.

Courtesy of Realtor.org

Simple Steps to Achieve a Better Credit Score

(ARA) – Americans are dealing with the credit crunch by keeping cash on hand. In the process, however, the average consumer is paying 2.6 bills late every month, according to the Western Union Payment Services Money Mindset Index.



Unfortunately, late fees and additional unnecessary charges can stack up quickly, depleting your cash flow and harming your credit score. Here’s how it works:



The longer you maintain a track record of paying your bills on time, the better your credit score, according to the Fair Isaac Corporation, which created the FICO score, more commonly known as a credit score. Your bill payment history accounts for 35 percent of your credit score, which is used to determine your eligibility for mortgages, auto loans, credit cards and other financing.  



However, late fees can lower your credit score -- and there’s no quick fix. When you apply for a loan, a low score may hinder your efforts to secure funds.  



“Managing your finances can feel like a juggling act that won’t end,” says David Shapiro, senior vice president of Western Union. “Flexible payment plans can help consumers keep their cash flow strong by timing the paying of bills to when they get their paychecks. This allows you to avoid late charges and risking credit standing. Over time, consumers can build a strong credit history, allowing them to finance a car or a home when they are ready.”  



In tough economic times, Shapiro and other experts say, lenders will scrutinize your credit score even more. Many credit offerings and debt consolidation loans may seem advantageous, but can actually lead to debt disaster. Here are simple tips for avoiding unnecessary fees and maintaining a good credit score:

 

* Avoid credit agencies that charge fees to improve your credit score. You can go online to reputable sites such as money.com or kiplinger.com and receive free advice.



* Research flexible payment plans that allow you to make smaller, more frequent affordable payments, such as paying a bill twice a month, but at smaller increments that suit your monthly budget.  



* Pay off credit card debt. Maintaining low balances can show your ability to manage bills and can increase your credit score over time. Once you pay it off, try to only carry a balance that you can pay off in a month. Paying off your balance each month in full can help your credit score.



*  Consider same-day payments. You can maximize cash flow by paying your bill the same day it is due. For example, you can make an in-person cash payment at more than 45,000 Western Union Agent locations, and receive proof of payment within minutes. Visit WesternUnion.com to find the closest agent near you.



* Check your credit report. You can get a free report at annualcreditreport.com or by calling (877) 322-8228. If you see a mistake, take necessary steps to get the mistake corrected as soon as possible.



* Learn more about credit scores. Download a free educational brochure from Fair Isaac Corporation’s Web site, www.myfico.com.



Just a few simple steps can make a big difference in managing your finances. Once you have a plan in place, what seems like a juggling act will turn into a smooth transition.  



Courtesy of ARAcontent

1st Time homebuyers-Buy a home Before Filing Taxes this year

Before you file your taxes this year, don't forget about the $7500 tax credit for first-time home buyers, which was enacted by the 2008 American Housing Rescue and Foreclosure Act. Designed to help stimulate interest in the housing market, this temporary provision provides a first-time home buyer (someone who hasn't owned a home in the last three years) a tax credit of up to $7500 for homes purchased between April 8, 2008 and July 1, 2009. Basically the tax credit, which must be repaid over 15 years, is an interest-free loan from the government to help you offset the costs of home ownership.

But here's the best part. The law allows qualified taxpayers to take the credit against either their 2008 or 2009 taxes. This means, if you qualify, you can buy a house this year before July 1st and receive the credit on the 2008 tax returns you're filling out right now. Imagine having an extra $7500 in cash to pay bills or credit cards or even pay for renovations on your new home. If you choose to utilize the credit on your 2009 returns, your tax professional can help you reduce income tax withholding up to the amount of the credit. This will help you to increase your take-home pay throughout the year to save money for a down payment for a qualified purchase before July 1st.

There are certain income restrictions and rules for repayment, but give us call today to learn more about this valuable government program for first-time home buyers.

Courtesy of All About News

A Taxing Time of Year

Tips to Make Your Tax Season Go Smoothly

It's that time again...time to start gathering all of that dreaded documentation to send to good old Uncle Sam! Recent stats say the IRS audited approximately 1 out of every 97 returns last year, so it pays to be careful. And even though this may seem like a very painful process, taking just a few simple steps right now will make your tax filing far easier and more accurate.


Keep it together. Make a quick list of all the documents or statements that were needed to complete your return last year – or call your tax planning professional for a checklist. Use this as a checklist to make sure you have a good start on the documents you may need this year. As you receive tax documents in the mail, grab your checklist, and mark the item as received. Then, keep all of the tax documents together in a large file or envelope marked "2008 TAXES."


Do the math. According to the IRS, the most common mistake on tax returns is bad math – from transposed numbers to downright incorrect data. And with one form leading to another, those errors can make a huge impact. Even if you use tax software, you're not off-the-hook – since it only adds the numbers YOU put in. Double-check entries carefully.

Every last cent. The IRS receives copies of your Form 1099 earnings each tax season. So, they know how much you make in interest and dividend income, and they will use that info to double-check your filing information. Make sure you collect all your earnings statements and document them on your return.

Sign on the line. It sounds almost silly, but forgetting to sign a return is actually a fairly common oversight. And the IRS won't process a return that doesn't have a signature. So, make sure you sign to avoid resubmitting your paperwork and possibly paying late-filing fees.

Remember, there isn't a lot of room for error when you're dealing with the IRS. A slight miscalculation could mean the difference between getting a return and writing a check – or worse, paying a penalty. It pays to work with a tax professional.

Beware of Tax Scams this Time of Year

As tax season rolls around, so do the scam artists. That's right...phishing criminals who want your personal information use this hectic and confusing time of year to prey on unsuspecting individuals.

These unscrupulous scammers send spam emails that appear to be from the IRS. These emails are often written to persuade you to link to a website that will allow you to update your data or receive important information. Remember, these phishing emails are quite sophisticated, and the links send you to what usually appear to be legitimate IRS or government websites. In reality, they are not. These sites will prompt you to divulge private information under the guise of the IRS requiring it, or sometimes, ironically, to protect you from identity theft or loss of privacy.

Although these emails are sophisticated and appear to be genuine, there are some simple steps you can take to avoid falling prey to one of these scams.

Always be suspicious of emails. Remember, the IRS does NOT initiate communication with taxpayers through email, but rather through the regular mail. If you receive an email that says it's from the IRS, you should immediately be suspicious and should forward it in its entirety to the IRS, so that they can take steps to shut down the fraudulent and bogus websites. The IRS requests that you forward all questionable emails to phishing@irs.gov.

Double-check the URL address. Keep in mind that all IRS websites begin with the following web address: http://www.irs.gov/. So, if you ever click a link in an email or visit a website that you believe is related to the IRS, the first thing you should do is confirm that the website begins with the correct URL address. Remember, sometimes it may "look" legitimate, but is actually an imposter site that is phishing for information. So always, always double-check the actual URL address before you type any information in the site.

Exercise extreme caution with attachments. When it comes to questionable emails, the best practice is to never open any attachments. That's because attachments are an extremely common method that hackers use to infect your computer with programs that may harm your computer or steal your personal information – often without you even knowing!

In today's technological environment, electronic communication offers us tremendous speed and convenience. But it can also be used for unethical purposes by scammers. Most organizations have worked very hard to put strict privacy policies in place. As a result, government agencies and financial institutions will almost NEVER ask you to divulge personal information via email.

If you receive any email asking for personal information of any kind, you should immediately be suspicious. When in doubt, call the customer service lines listed on your statements or documents and discuss the email that you received.

Make Sure You Get Your Money Now...Rather than Waiting for a Refund Next Year

While you're getting your tax information ready for the past year, it's a good time to look ahead to the coming year. For many of us, it's a constant balancing act to make sure we're withholding enough so that we don't have to pay at the end of the year, but getting a return at the end of the year isn't necessarily the best plan either. When you think about it, getting a refund check means that you let the IRS use your money throughout the year without paying you any interest. Wouldn't you rather have that money to use during the year?

Here's how you do it. The IRS allows you to increase the number of dependants on your W-4 withholding form, meaning that less will be withheld for taxes from each paycheck. But don't go overboard. You should only lessen the periodic tax withholding to match the expected refund. This way you are taking your refund as you go...instead of letting the IRS hold on to it.

Believe it or not, the IRS actually makes it easy to calculate! The IRS offers a handy IRS Bean Counter calculator for free, which lets you see how a change in withholding will affect your paycheck. Take advantage of this calculator today to see how changes can impact your take-home pay.

By following the tips above, you can help eliminate some of the frustration from tax season, as well as make sure you're on track for the coming year. Remember, before you make any changes, you want to be sure you are balancing the amounts carefully and correctly, so it's always a good idea to check with your tax professional.


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