Chicagoland Home Buyer & Seller News & General Real Estate Information
About Judith Weiner
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About Judith Weiner
By Referral Only …is the heart of my business. I focus 100% of my time providing world-class service to my clients. As a result, my valued clients and friends refer their neighbors, business associates, family and others to me for my trusted advice on buying or selling homes. It is my desire to build a business based on strong, lasting relationships – starting with you!
I am a compassionate, caring and knowledgeable real estate consultant working in the Coldwell Banker office in Highland Park. For over 19 wonderful years, I have consistently and systematically served the Northern Chicagoland Communities. My extraordinary team of detailed oriented office staff & over 100 sales associates work out of our attractive offices in downtown Highland Park on Sheridan Road. My car and home office enable me to ably serve the vast Chicagoland area.
Real Estate transactions often become a complicated maze of numbers and negotiations. Successfully maneuvering through these challenges requires a creative professional who can navigate the way in order to minimize stress and maximize success for home sellers and buyers.
I have been a member of the Chicagoland community all my life. My husband and I raised our three sons in the suburbs and have been residents of Highland Park since 1979. I have been a full-time residential real estate consultant covering the Chicago Suburban marketplace since becoming a real estate consultant in 1987 and have an in-depth knowledge of the North Shore, Northwest and Far North Suburban communities.
I pride myself in maintaining close contact with my clients and delivering World Class Service as well as paying close attention to the details to avoid problems and to ensure that their home sale or purchase experience is a very positive one. I have earned a reputation for leading clients through the entire experience of buying or selling in a caring and professional way. All of my personal and professional goals have been oriented around the care of other people. My people skills and exceptional business management skills enable me to put people at ease and help them find not just a home, but the right home. By listening hard to my clients needs, including the unspoken, I help provide the alternatives that fit their criteria.
My unique, creative and active rather than passive marketing programs effectively sell homes for the best price in the most realistic time. I have developed outstanding negotiation skills and when I put together a contract, you can be assured of a successful closing. I am committed to a long-term career in real estate as evidenced by my belief in placing a premium on continuing education so that you the buyer or seller can be the beneficiary of the latest information, skills and the technological advances. Above and beyond the sales person’s license required to sell real estate in Illinois, I earned my Broker’s license in 1998.
I have my CRS (Certified Residential Specialist) designation, awarded by the National Association of REALTORS® to experienced REALTORS® who complete advanced training in listing and selling. Only 5% of the REALTORS® in the country have earned the right to be called CRS® but they are involved in 25% of all real estate transactions.
I was awarded Graduate, REALTOR® Institute (GRI) symbol from the National Association of REALTORS® after attending a specific, intensive series of a minimum of 90 hours of classroom instruction. The GRI symbol is the mark of a real estate professional that has made the commitment to provide a high level of professional services to you by securing a strong educational foundation.
I was awarded the ABR® (Accredited Buyer Representation) designation that is given to real estate practitioners by the Real Estate Buyer's Agent Council, Inc. (REBAC) of the National Association of REALTORS®. The ABR® designation, the benchmark of excellence in buyer agency service, demonstrates to my clients that I have taken steps to continue my education in the field of buyer representation and have proven experience and training in order to deliver ethical and professional service to real estate buyers.
I have achieved the e-PRO certification awarded to REALTORS® who have taken and passed an extensive online course to help real estate professionals thrive in the competitive world of online real estate from the National Association of REALTORS®. I received my RECS designation from the Real Estate Cyberspace Society. That certification designates REALTORS® who have proven their skills in electronic marketing techniques.
I have achieved Cendant Mobility Inventory and Marketing Specialist (CMIS & CMMS) certifications. The CMIS course covers tasks for safeguarding and selling a transferee’s vacant property after his/her move and how to meet client performance metrics. The CMMS course teaches how to best market the transferee’s old house, and to decrease administrative burdens, and also covers the Amended Sale Program and Broker Market Analysis. I have also achieved Cendant Mobility Buyer Specialist certification (CMBS). This CMBS course covers how to provide transferee buyers top-flight service.
Over the years I have received prestigious awards given to the top Coldwell Banker® real estate agents worldwide such as Coldwell Banker’s International President’s Circle, Coldwell Banker’s International President’s Elite and membership in Coldwell Banker’s prestigious International Diamond Society.
To provide excellence in service and support throughout the process of buying or selling, I have assembled a team of top professionals in lending, appraisal, title, inspection and relocation. I also have all the superior resources available that come with being a part of the Coldwell Banker network of real estate agents.
Whether your need is a first home, a growing family home, an investment property or a home for the retirement years, I know I will be an excellent guide and manager for each transaction. I look forward to the opportunity to be of service.
Foreclosure Fraud Video
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View this Freddy Mac video to get the low down on Foreclosure Scams.
Home Value Facts for 2008
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DID YOU KNOW -- Real Estate Still a Great Investment
February 2008
Over the past 30 years, home values have risen more than 6% annually. On average, the value of a home nearly doubles every 10 years.
Homeowners benefit from the power of leverage. At an annual appreciate rate of 5%, a 10% down payment on a home will return:
94% after 3 years, 225% after 5 years, and 623% after 10 years.
Average homeowner's net worth is $171,000
Average renter's net worth is $4,800
60% of the average home owner's wealth comes from their home's equity.
For buyers who qualify for conventional financing, mortgages are available at near historically low rates.
All of these statistics were reported on the National Association of Realtor's new web site, www.housingmarketfacts.com. This site is specifically designed to give home buyers and sellers information that illustrates the value of real estate as a long term investment.
Judith Weiner's Home News - August 2008
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Judith Weiner's Home News August 2008
It’s Our Choice
There once was a woman who woke up one morning, looked in the mirror, and noticed she had only three hairs on her head. “Well,” she said, “I think I’ll braid my hair today.” So she did and she had a wonderful day.
The next day she woke up, looked in the mirror, and saw that she had only two hairs on her head. “Hmm,” she said, “I think I’ll part my hair down the middle today.” So she did and she had a grand day.
The next day she woke up, looked in the mirror, and noticed that she had only one hair on her head. “Well,” she said, “today I’m going to wear my hair in a ponytail.” So she did and she had a fun, fun day.
The next day she woke up, looked in the mirror, and noticed that there wasn’t a single hair on her head. “YEAH!” she exclaimed. “I don’t have to fix my hair today!”
Attitude is everything – and it’s our choice!
Entrepreneur Tip
Starting a business can be tough – just ask anyone who’s done it. The hours are long and the initial pay is usually low to nonexistent. Nonetheless, almost 465,000 Americans take the entrepreneurial plunge every month. If you’re one of them, then you might want to take a look at your local community college offerings, where many of the programs are open enrollment. This flexibility is a good match for people interested in starting a business, and rather than pursuing a degree in entrepreneurship, you have the option of taking only a class or two to fill gaps in yourknowledge.
Do You Have Too Much Debt?
How do you know if you have too much debt? Even if you earn a high income and are currently making your payments on time, you could be in trouble if your debt-to-income ratio is too high, says personal finance expert Lynnette Khalfani-Cox (www.themoneycoach.net). Here are some warning signs:
· You have maxed-out credit cards, or cards that are pretty close to their limits.
· You use your credit card checks to pay your credit card bills.
· You can’t afford some of your payments, so you skip them.
· You’re not sure what your total debt is.
· You switch credit cards to get a lower rate because you can’t afford to pay the minimum on the card you have.
· You and your partner argue about bills.
· You’re stressing out or losing sleep over bills.
· When you apply for new credit, you’re turned down.
· You get phone calls from creditors or bill collectors.
· You’re using a credit card to buy things you need on a daily basis, like gas or groceries.
· You have a low FICO score because of the amount of your debt.
Khalfani-Cox says that if any of these statements describe you, you’re probably operating in the danger zone with your credit cards.
On Choosing Your Battles Wisely
Theodore Roosevelt (1858-1919), the 26th president of the United States, was an extraordinary man: scientist, explorer, and cowboy, as well as an authority on wildlife. He wrote 36 books, more than 100,000 letters, and became president at the age of 42. It seemed there was nothing he couldn’t do.
However, during his presidency, Roosevelt’s oldest daughter, Alice, caused him and his wife a good bit of trouble. Alice was beautiful, willful, and rebellious. She was seen smoking cigarettes in public and flagrantly flirting with men; she enjoyed carrying a live snake in her purse. The newspapers loved Alice, and Alice loved the attention.
One day, Roosevelt was asked why he didn’t keep his daughter more firmly under his control. He replied, “I can either run the country or control Alice, but I’ll never be able to do both.”
Roosevelt, who had mastered so much in the world, knew what battles he could fight and win. Even more important, the hero – who once led the “Rough Riders” to victory in the Spanish-American War – knew which battles to leave alone.
Do you know how to “choose your battles wisely”?
Say What?
We’re not afraid of challenges. It’s like we always say: If you want to go out in the rain, be prepared to get burned. – Anonymous Brazilian soccer player
Please provide the date of your death. – From an IRS letter
You are welcome to visit the cemetery where famous Russian and Soviet composers, artists, and writers are buried daily except Thursday.
– Sign in a Moscow hotel
Can’t act. Can’t sing. Balding. Can dance a little.
– MGM summary of Fred Astaire’s screen test
Traffic is very heavy at the moment, so if you’re thinking of leaving now, you’d better set off a few minutes earlier. – Anonymous traffic report
Go see it and see for yourself why you shouldn’t go see it. – Samuel Goldwyn
Fiction writing is great. You can make up almost anything.
– Ivana Trump, upon finishing her first novel
And now the sequence of events in no particular order.
– Dan Rather, television news anchor
Your food stamps will be stopped effective March 1992 because we received notice that you passed away. You may reapply if there is a change in your circumstances.
– Department of Social Services, Greenville, SC
Are You Educated – Really?
Do you consider yourself an educated person? We’re not talking about where you went to school or how many Jeopardy answers you can come up with. We’re not even talking about everything you’ve learned from your experiences in the world. What we’re asking is, are you educated? Do you know what you do and don’t know? That is the true definition of an educated person.
Being educated means this: First, you recognize and admit what you don’t know and what you need to know. Once you’ve admitted to yourself and the world that you don’t know something, the next piece of being educated is knowing where and how to get what you need. Once you’ve got everything you need, the real trick is knowing how to use what you’ve gone out and gathered up.
Author/publisher William Feather seemed to have gotten this right when he defined education this way: “An education isn’t how much you have committed to memory, or even how much you know. It’s being able to differentiate between what you do know and what you need to know; and it’s knowing how to use the information you get.”
How To Get Balanced
Life and work pressures can feel overwhelming at times. And when that happens it’s good to take a breather and remind yourself what’s important. Here are a few pearls of wisdom offered by Alan Weiss in his newsletter Balancing Act (www.summitconsulting .com/newsletter.html):
Try to remember that what you’re shooting for is success – not perfection. That should give some relief; you don’t have to be perfect and you don’t have to make excuses for being human.
When you have time off, avoid checking email or voicemail unless you’re expecting something truly important. Why? You risk the chance of upsetting your peace of mind and your good night’s sleep if you see something that starts your mind working or worrying. Whatever it is, it’s likely that it can wait till you’ve relaxed, recharged, and gotten a decent night’s sleep.
When you’re feeling constantly bombarded with too much work, take some time to see if there are some areas you can streamline. You might be surprised at the labor-saving technology, devices and techniques that are available. But you have to take the time to find and put them into action.
Good Parenting Principles
When talking to your child, there are certain expressions that parents should avoid, according to Laurence Steinberg in The 10 Basic Principles of Good Parenting. Some of them are “Don’t talk back,” “You’ll know better when you’re older,” “If I want your opinion, I’ll ask for it,” and “Keep your mouth shut.”
Steinberg says that even though you may have to make a preemptive decision about your child, there are more polite ways to tell him. You don’t want your child to feel that whatever he thinks is automatically irrelevant because he’s young. In fact, Steinberg says as a parent you should treat your child with respect, and consider his opinions most of the time. Inevitably there will be times when the latter isn’t possible or advisable, but if children feel generally valued they’ll likely come to understand that you’re trying to make the best decision – even if they know they aren’t going to get their way.
Some “Juicy” Facts
Do you love fresh-squeezed juices? Many venues offer this “healthy” treat, and people are consuming large quantities of it. But when fruits or vegetables are fresh squeezed, according to the Food and Drug Administration, harmful bacteria, which comes either from the inside or the outside of the produce, can become part of your juice. That’s why most of the juices sold in the United States are pasteurized – to kill the harmful bacteria.
Some of us are especially vulnerable to the dangers of these bacteria, including children, the elderly, and people with weakened immune systems. These people should avoid unpasteurized juices.
Keep this in mind when you’re visiting farmers’ markets, grocery stores and health food stores that offer fresh-squeezed juices. Venues that sell containers of the juice must provide a warning label. But venues that sell fresh-squeezed juice by the glass, such as roadside stands, restaurants and juice bars, do not have to provide any warning that the juice you’re drinking has not been pasteurized.
Are You Seeing Red?
The color red is associated with mistakes and failures, experts say. And now researchers at the University of Rochester and University of Munich say that the color red can affect how people perform on tests. The study, which was published in the Journal of Experimental Psychology, found that people’s associations with colors are so strong and deep that people are predisposed to certain reactions when they see that color.
Red has been traditionally associated with errors in schoolwork. Therefore, says Andrew Elliot, lead author and professor of psychology at the University of Rochester, when people see even a flash of red before being tested, they associate the color with mistakes and failure, and in turn perform poorly on the test.
The researchers say the study shows that care must be taken when it comes to color and achievement, and that color can act as an environmental cue that influences behavior.
Not-Reading Statistics
· One-third of high school graduates never read another book for the rest of their lives.
· Forty-two percent of college graduates never read another book.
· Eighty percent of U.S. families did not buy or read a book last year.
· Fifty-seven percent of new books are not read to completion.
· Seventy percent of Americans haven’t visited a bookstore in five years.
That Moment Of Infinite Promise
I had an almost intolerable awareness that every morning began with infinite promise. Any book may be read, any idea thought, any action taken. Anything that has ever been possible to human beings is possible to most of us every time the clock says six in the morning. On a day no different from the one now breaking, Shakespeare sat down to begin Hamlet.
– Ralph Waldo Emerson
The Leader Attitude
As a leader, it’s important to project the correct attitude to those who spend their days working for and with you. Here are some sage words from Napoleon Hill in The Law of Success in 16 Lessons:
“Until you have learned to be tolerant with those who do not always agree with you – until you have cultivated the habit of saying some kind word of those whom you do not admire – until you have formed the habit of looking for the good instead of the bad there is in others, you will be neither successful nor happy.”
Rosemary Is Good For Your Brain
The herb rosemary contains an active ingredient, carnosic acid, that fights off damage to the brain. This ingredient can protect the brain from stroke and neurodegenerative conditions such as Alzheimer’s, and also from normal aging, according to a group of researchers at the Burnham Institute for Medical Research.
Rosemary comes from a shrubby evergreen bush with needlelike leaves and trusses of flowers that can be white, pink, purple or blue. It derives its name from the Latin rosemarinus, which translates as “dew of the sea,” and has a long history as a memory aid. It was also used in the past at weddings to symbolize love and loyalty.
How To Tell A Story Well
Stories are one of the most powerful ways to communicate ideas. And there are some people who are naturally good storytellers. But just about anybody can benefit by knowing how to set up a good story. Here are some pointers from Doug Stevenson’s Story Theater International Web site, www.storytheater.net:
When you begin a story you need to set the scene. Stevenson says consider using the five senses to get the reader into the place where your story kicks off. Then you can begin your journey, introducing characters as they naturally occur in the narrative. Great stories almost always include an obstacle and the telling of how that obstacle was overcome. According to Stevenson, this is where real teaching occurs, by breaking the story down so the reader or listener knows exactly what you did to succeed. Then wrap it up, make your point, try to help the audience relate it to their lives, and give it a pithy ending.
Quotes
There are three ways to get things done: Do it yourself, employ someone, or forbid your children to do it.
– Monta Crane
A teacher affects eternity; he can never tell where his influence stops.
– Henry Adams
The quickest way to double your money is to fold it and put it back in your pocket.
– Unknown
Rate Lock Duration
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Rate Lock Duration
Lock durations can vary for mortgage financing, but most lenders lock in the interest rate for 60 days from the date the loan application is submitted. As long as the loan is closed within that lock-in period, the lender honors the agreed upon interest rate.
Some consumers are misled by advertising that quotes unrealistically low rates based on 15- or 30-day lock durations. This is called 'short-pricing.' The lender basically knows the borrower doesn't have time to meet their conditions and have all the necessary paperwork in order within that brief time period. As a result, the lender is not obligated to honor the low rate that was listed in their advertising.
For simple refinance transactions, a 45-day lock-in period is more realistic. For purchase transactions, which are typically much more complex, you're much safer going with a 60-day lock, even though the interest rate might be a little higher than the rate you see quoted on billboards and the Internet.
Borrowers should make sure they have a written rate lock agreement, and allow themselves a reasonable amount of time to close their loan. I prefer to lock in all my clients as soon as their application is filed, rather than gamble with predicting short-term interest rate movement. My team and I focus more on assisting clients with long-term goals and management of their mortgage debt to secure a strong financial future.
The Truth About Appraisals
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The Truth About Appraisals
Knowing the Guidelines Solves the Mystery
The appraisal process often baffles consumers. They may feel that their home is worth a higher dollar amount, and so the appraised value doesn't always make sense to them. It is important to know that the appraiser is completely independent from lenders, buyers, sellers, and Real Estate Agents, and that the guidelines to which they adhere are dictated by the Uniform Standards of Professional Appraisal Practice (USPAP) and Fannie Mae. In most states, the mortgage lenders must also disclose the purpose of the appraisal, as each transaction carries its own set of rules.
In essence, these important guidelines help appraisers put a fair market value on homes based on comparable sales in the same area, and the home must be bracketed in size and value.
For example, there is no set dollar figure associated with a great view, pool, spa, bathroom upgrades, etc. If a homeowner installs a custom pool that cost them $30,000, but the local marketplace supports the value of a pool at $15,000, then that item will be bracketed as [$15,000] on the appraisal.
Upgrades can usually be expressed at a higher percentage of their value in newer homes because the only way to obtain those upgrades was to put more money into the cost of building the home. On the other hand, the upgrading or remodeling of an older home is rarely reflected in full in the final appraisal. This is because typically 25-40% of the project involves demolition and the fixing of issues that aren't uncovered until the project has already begun, such as plumbing or wiring that may need updating.
Ultimately, the value of the upgrades must be supported by comparable examples within the same marketplace. These comparisons must be drawn from current market activity within the last six months. This is a safeguard to prevent appraisers from attaching too high a value to the home in question, and opening up the appraisal for review. This guideline further states that appraisers can only base their opinion on the value of homes that have actually closed escrow.
As a loan professional, I make a point to follow the appropriate guidelines at all times. This promotes a good relationship with the lender, and helps to create easier and much smoother closings for my borrowers.
Greg Schneider
V.P. Residential Lending
PHH Home Loans
Phone: (847)686-0158
Fax: (847)686-0158
gxschneider@cbburnet.com
http://www.GregSchneiderOnline.com
Choosing a Fixed Rate Loan
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| Choosing a Fixed Rate Loan |
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 Fixed rate loans generally come with one of two options; the 30-Year Fixed and the 15-Year Fixed. If a borrower is planning on being in the same home for a long period of time, a 30-Year Fixed may be more attractive because it offers stability. The monthly payment will remain consistent over the life of the loan. If interest rates are at historic lows at the time the borrower is seeking to obtain financing, this is a good program to consider.
A 15-Year Fixed loan program offers the same stability, but the accelerated amortization schedule makes the monthly payment substantially higher. While the interest rate may be lower on this type of loan, the borrower must be willing to commit to a higher monthly payment. If the borrower wishes to retire in 15 years and be debt-free at that time, this loan program may be more suitable to the borrower's long-term needs.
It is also possible to make pre-payments on a 30-Year loan and reduce the life of the loan, as well as the overall interest payment, without committing to the higher monthly payment of a 15-Year program. As long as there is no pre-payment penalty associated with the 30-Year mortgage, pre-payment offers the borrower the latitude to make additional payments when it is affordable. If cash flow becomes difficult, this arrangement will not put the borrower in a compromising position.
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What Is a Prepayment Penalty?
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What Is a Prepayment Penalty?
 A prepayment penalty is a fee charged to borrowers that make full payment on their mortgage, or pay off a substantial portion (generally anything exceeding 20% of the total loan amount), ahead of schedule. This is a clause written into some contracts to protect the lender's book of business in exchange for providing a lower interest rate, or for providing financing to a high-risk borrower.
Prepayment penalties vary with different lenders, but generally apply to a one-, two-, three-, or five-year period of time. This fee can be expressed as either a specific number of months' interest or a percentage of the outstanding balance. A 'hard' prepayment penalty applies to either the refinance or the sale of a property. A contract written with a 'soft' prepayment penalty permits the borrower to sell their property without incurring a penalty, but does restrict refinancing for a set period of time. It is important for the consumer to know that a prepayment penalty is the borrower's choice and should never be considered a requirement!
Make sure you are working with a reputable loan professional who is aware of your long-term plans before consenting to sign off on an agreement that includes a prepayment penalty! Always ask for a written evaluation of your loan options.
What Is "Seller Rent-Back"?
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What Is "Seller Rent-Back"?
 In home purchase transactions, there are many times when the buyer and the seller are simply unable to agree upon a specified closing date. The Real Estate Agent involved can negotiate a 'rent back' period that is agreeable to both parties. This means the transaction technically closes, the loan for mortgage financing is funded, and ownership of the property is transferred into the buyer's name. However, the buyer does not take occupancy of the property until several days later. Instead, the buyer sets up a rental agreement in which the property is leased back to the seller for a temporary period that everyone has agreed upon.
While this strategy is fairly common, it is important to make sure the seller is not occupying the property in a lease agreement for more than 30 days* after the close of the purchase transaction. This would constitute a big problem for the new homeowner. After 30 days, the lender would view this as a non-owner occupied purchase, and it would cause the terms of the loan to change radically.
*This requirement can vary depending upon the lender. Always verify that the timeframe is permissible prior to drafting such an agreement.
Ways to improve a Credit Score
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Ways to Improve a Credit Score
 With identity theft on the rise, consumers are becoming increasingly aware of the importance of reviewing their credit reports. However, their thoughts about credit and its long-term impact upon their financial future typically end there until it's time to apply for a home loan. A credit score is used to evaluate how likely a borrower is to repay their loan. There are several actions a person can take to impact their score. Here are a few to keep in mind.
If someone has a credit card which has a high balance, while their remaining credit cards have low or zero balances, it's best to distribute the debt across the cards in order to change the ratio of debt to available credit.
Many consumers believe that they should close an existing credit card account if the card is inactive. It's better to keep the account open and use it periodically in order to take advantage of its contribution to their long-term credit history.
With the flood of credit card offers that come in the mail, it may be tempting to open new accounts. However, these "pre-approved" offers are not approved until the companies run a credit report which will temporarily impact the applicant's credit score. In addition, experts recommend that a person maintain between two to five credit card accounts, total, so it's best to avoid accumulating too many.
There are several factors that contribute to a credit score. But by observing the tips above, as well as making payments on time and keeping balances as low as possible, a consumer is sure to achieve superior results.
High Credit Score = Low Mortgage Rate
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High Credit Score = Low Mortgage Rate
 Credit scoring was developed in the 1960s as a means to determine whether or not consumers were likely to repay their loans. The score ranges from 350 to 850 with a higher score being extremely favorable. Essentially, a high credit score translates into lower interest rates for the borrower.
There are five factors that comprise the credit score. Payment history accounts for 35% of the score; outstanding credit balances have a 30% impact; credit history makes up 15%, type of credit factors at 10%; and inquiries influence the score by 10%. This gives the lender a snapshot of an individual's sense of financial responsibility and ability to pay back loans.
There are many quick tricks to improve the credit score, and I can provide borrowers with more information on this subject. If necessary, I guide them to a reliable resource for credit remediation. If a borrower has to pay a higher interest rate to close a loan, the tarnished credit rating will begin to improve once mortgage payments are made on time and in full. If that is the case, my team and I will be on the watch to alert the borrower when an opportunity arises to refinance and get a lower interest rate.
The Home Equity Line of Credit
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The Home Equity Line of Credit
 Home equity lines of credit have become increasingly popular, and there are many types of loan programs available in this genre. This type of credit line is not meant for day-to-day expenses as a credit card would be, however, many consumers use their home as collateral to obtain an equity line of credit to pay for higher ticket items such as educational expenses or home improvements.
Borrowers may want to compare the advantages of a traditional second mortgage over an equity line of credit. But they should not compare these programs based on the Annual Percentage Rate (APR) alone. The APR in an equity line of credit is based only on the periodic interest rate, and does not include other charges such as points, maintenance fees or transaction fees. Conversely, a second Trust Deed takes all points, fees, and other charges into account when calculating the APR.
If someone you know is interested in an equity line of credit or a traditional second loan on their mortgage, I can provide them with a spreadsheet to compare available loan programs to review with their financial advisor.
Preparing Your House for the Market
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Preparing Your House for the Market
 If you're selling your home, make sure your home has "curb appeal." Remember, you can't change a first impression. If your home looks like a diamond in the rough, think about putting a small investment into cleaning up the outward appearance.
Imagine that you are seeing the property as a potential buyer. You'll want to do a little yard work - clear away dead shrubbery, and trim your trees and lawn. Weed the flower beds or plant some flowers that will bloom in season. Make sure the driveway is not stained, and if you can't afford to paint the home entirely, at least make sure the front door and immediate entryway is immaculate.
Fresh and clean are still the keywords to making a good first impression once the potential buyer walks through the door. Unless a particular window is facing an eyesore or a neighboring building, open the drapes and let the sun shine in! Put your dog in the back yard or garage so he's not jumping on the new people who just walked in.... they might have allergies! There is much you can do to improve the look of your home, without investing a great deal of money.
Dealing with Debt After Retirement
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Dealing with Debt After Retirement
 Reverse mortgages designed to help "house rich, cash poor" seniors meet their day-to-day expenses have gained popularity. Equity is taken out of the home, so debt increases and equity diminishes over time, (unless the property value increases and offsets this use of equity).
Many lenders offer reverse mortgages, and most are set up so that there is no monthly payment as long as the owner or co-owner(s) reside in the home. There are no minimum income requirements, and most plans allow the owner to retain title to the property until they have lived in a different permanent residence for at least 12 full months, sell the property, die, or the end of the loan term is reached.
The Home Equity Conversion Mortgage (HECM) is the only type of reverse mortgage insured by the Federal Housing Administration (FHA). Even if the original loan on the home was not an FHA loan, the reverse mortgage can be.
Seniors should first consider all their options and take a realistic look at monthly expenses. The AARP warns not to take too big of a chunk out of home equity, as this may affect the ability to collect Social Security Income (SSI). As an alternative, the retired home owner can consider downsizing to a smaller dwelling, or relocating to a less expensive neighborhood. Visit http://www.aarp.org for more information.
Rate Lock Duration
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Rate Lock Duration
 Lock durations can vary for mortgage financing, but most lenders lock in the interest rate for 60 days from the date the loan application is submitted. As long as the loan is closed within that lock-in period, the lender honors the agreed upon interest rate.
Some consumers are misled by advertising that quotes unrealistically low rates based on 15- or 30-day lock durations. This is called 'short-pricing.' The lender basically knows the borrower doesn't have time to meet their conditions and have all the necessary paperwork in order within that brief time period. As a result, the lender is not obligated to honor the low rate that was listed in their advertising.
For simple refinance transactions, a 45-day lock-in period is more realistic. For purchase transactions, which are typically much more complex, you're much safer going with a 60-day lock, even though the interest rate might be a little higher than the rate you see quoted on billboards and the Internet.
Borrowers should make sure they have a written rate lock agreement, and allow themselves a reasonable amount of time to close their loan. I prefer to lock in all my clients as soon as their application is filed, rather than gamble with predicting short-term interest rate movement. My team and I focus more on assisting clients with long-term goals and management of their mortgage debt to secure a strong financial future.
The Difference Between Pre-Qualification and Pre-Approval
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The Difference Between Pre-Qualification and Pre-Approval
 Pre-qualification is the first step in obtaining mortgage financing. A potential borrower answers a few questions to provide the loan consultant with a quick snapshot of the borrower's income, existing debt, accumulated savings and whether or not there is a co-borrower. Signature(s) allow the loan consultant to run a credit report and begin to determine what loans are good candidates for this particular client. However, there are literally thousands of loan programs available. It is important for the loan professional to know the long-term financial objectives of the prospective homeowner.
Pre-approval is a written documentation that proves the borrower has full support of a lender. It means the form 1003 Uniform Residential Loan Application has been completed and reviewed by an underwriter. Based on the borrower's income, debt ratio and savings, the underwriter will provide a dollar amount this borrower is eligible for. Now the borrower has the convenience of shopping for a home in the price range agreed upon by the lender.
Pre-approval allows potential homeowners to shop as cash buyers, and that means negotiating power. The seller will take an offer from a pre-approved shopper much more seriously and may even accept a lower bid because they know the financing is in place and the deal is secure.
What Constitutes Closing Costs?
Posted at 12:51 PM, Jan. 20, 2007
What Constitutes Closing Costs?
 Closing costs are expenses that cover fees associated with the transfer of property ownership, fees paid to state and local governments, and the costs of obtaining a mortgage loan. Some of these fees are negotiable, and could be paid by either the buyer or the seller. Some costs are one-time fees (non-recurring closing costs, such as title search, termite inspection, appraisal, etc.); while other fees such as homeowner's insurance or property taxes are things you will expect to continue to pay on a regular basis as a homeowner.
As part of the loan selection process, your mortgage consultant should be giving you some idea of how much money you should have in reserve to cover your end of these costs. The Real Estate Settlement Procedures Act (RESPA) requires the lender to provide you with a Good Faith Estimate within three days of the submission of your loan application.
RESPA also states that as a home buyer, you have the legal right to request a copy of the HUD-1 Settlement Statement 24 hours before your closing is scheduled. The HUD-1 clearly defines all closing costs, including those that are to be paid by the buyer and the seller. It's a good idea to have both of these forms before your closing so you can compare the estimated costs to the actual costs before you finalize your transaction.
PMI deductible for many homeowners
Posted at 12:49 PM, Jan. 20, 2007
New tax law tweaks home-buying math
Bush signs legislation that makes PMI deductible for many homeowners.
By Les Christie, CNNMoney.com staff writer
December 20 2006: 12:42 PM EST
NEW YORK (CNNMoney.com) -- A $40 billion tax bill signed into law Wednesday by President Bush extends several popular tax breaks and introduces a new one - tax-deductibility of private mortgage insurance (PMI).
Only homeowners with adjusted gross income less than $110,000 and who itemize their deductions will be eligible to reap the benefit.
But for those buyers, it will change the math of buying a house with a low or no down payment.
"I love it," says mortgage broker Bob Moulton of Americana Mortgage Group, "Even though it's limited in who can qualify, it helps people get into a home."
Most lenders require buyers putting less than 20 percent down to purchase PMI because borrowers are more likely to walk away from a mortgage when they have less of their own money invested in the property. Lenders use PMI to protect themselves against that risk.
The alternative to PMI is an equity loan "piggybacked" on top of the first mortgage. According to Moulton, extremely low interest rates on home equity loans (HELs) and lines of credit (HELOCs) encouraged buyers to use piggybacks instead of PMI the past several years.
In addition, equity loan interest is tax deductible. With that advantage and the low rates, piggybacks became far cheaper than PMI.
That situation has reversed because equity loans are based on the prime rate, which has climbed from about 4 percent to 8.25 percent.
Today, according to Moulton, on a $225,000 home, the piggybacked portion of the loan would cost about $4,000 a year while the PMI payment would come to about $3,000 - or less - depending on the borrower's credit score.
The tax deduction on the equity loan would be about $1,600 for a borrower near the upper income limit. With the new law, the PMI tax break would be about $1,200.
That means choosing PMI would cost $1,800 compared with $2,400 for the piggyback loan, an $800 savings.
"It's tough to justify going for a piggyback now," says Moulton.
How Adjustable Rate Mortgages Work
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How Adjustable Rate Mortgages Work
 During the last decade, Adjustable Rate Mortgages (ARMs) have increased in popularity among consumers. These days, few homeowners (especially first-time buyers) remain in their homes for more than seven years. In this case, it often makes sense to get an adjustable rate mortgage with a lower rate, especially one with a 5-year or 7-year fixed portion, since they won't have the loan long enough to be concerned about rate fluctuation.
Adjustable Rate Mortgages have three main features: Margin, Index, and Caps. The Margin is the fixed portion of the adjustable rate. It remains the same for the duration of the loan. The Index is the variable portion. This is what makes an ARM adjustable. Margin + Index = Interest Rate.
It's important to understand that there are many different indices: The 11th District Cost of Funds (COFI), the Monthly Treasury Average (MTA), The One Year Treasury Bill, the Six Month Libor, etc. Each index has its own strengths and weaknesses; some are slow moving, others are more aggressive.
The third and final component of Adjustable Rate Mortgages is Caps. Caps limit how much the rate can fluctuate over time. Annual Caps limit changes to the annual rate, whereas Life Caps provide a worst case scenario over the life of the loan.
What Is Title Insurance?
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What Is Title Insurance?
 Title insurance is a policy that is usually issued by a title company to protect the lender against something that might have happened in the past, rather than something that might occur in the future. In essence, an extensive search of public records is conducted by the title company to validate who has held title to the property in the past. The lender wants to know if there are any liens, judgments or easements on the property that they should be aware of.
But title insurance also guards against hidden risks or unknown factors that might cause an encumbrance at some point in the future, such as unknown heirs, forged deeds or wills, misinterpreted wills, false impersonation of the true owner of the property, deeds signed over by persons of unsound mind, or defects in the recording of past titles. Title insurance covers the cost of the title search, and any legal fees that may result from any dispute over past property ownership. It is required by the lender and paid for by the buyer.
The smart home buyer will also purchase title insurance to protect their own interests. This is a one-time premium that protects the buyer or their heirs, as long as they retain an interest in the property.
What is Negative Amortization?
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What is Negative Amortization?
 A negative amortization loan is an adjustable rate mortgage that allows the consumer to tap into home “equity” by offering several monthly payment options. Up to an additional 25% of the original loan amount is available to the borrower.
This flexibility works well for consumers who have seasonal income or want more control over their cash flow. However, the borrower must have some degree of financial discipline. Each month, the borrower will choose to make a fully amortized payment, an interest-only payment, or a low introductory rate payment.
A fully amortized payment is larger, and includes payment toward principal + interest. The interest-only payment is lower, but no part of that mortgage payment goes toward the principal. The borrower is simply keeping their head above water.
The third option is where negative amortization comes into play. If the consumer chooses to make the low introductory rate payment, the interest is not sufficiently covered for that month. The balance of interest owed is then tacked back on to the principal, thus increasing the mortgage debt.
Smart consumers can use these payment options to their advantage, but should have a full understanding of how adjustable loans work. They should also know that once the maximum loan amount has been reached, the lender will immediately increase the payment amount to the fully amortized rate.
The ABC's of Radon in Illinois
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The ABC’s of Radon in Illinois
Test Your Home Today
Test your home for radon today. Radon, an indoor air pollutant, is a colorless, odorless radioactive gas. Radon comes from naturally occurring uranium in the soil. The only way to tell how much radon you have in your house is to TEST.
BE AWARE
The USEPA estimates that approximately 13% of lung cancer deaths are radon related. The remaining 87% of lung cancer deaths are related to smoking. The USEPA has also concluded that smokers are at higher risk from radon. The USEPA recommends that indoor radon levels be below 4 picocuries per liter of air.
Do You Know Where Radon Comes From?
Most radon enters a home because of air pressure and temperature differences between the home and the outside air. When air is vented from buildings by natural or powered ventilation, radon and other soil gases are drawn in from the surrounding soil through openings between the house and the soil.
Elevated radon levels have been found throughout Illinois which is made up of 3 zones. Lake and Cook Counties are in zone 2 where Moderate to High levels of Radon can be found. People residing in zone 2 and zone 3 may tend to dismiss radon as a health risk. But, elevated radon levels (4.0 pCi/L or more) occur in these areas just as they do in zone 1. Don’t be fooled. Test for radon. The only way your family can know whether you have an elevated radon level is to test for it.
Where Do You Obtain Kits?
• Kits may be available at your county health department, local extension office, hardware store, or home improvement store. • Call the Illinois Emergency Management Agency (IEMA)-Division of Nuclear Safety Radon Program at 1-800-325-1245 for a list of laboratories that sell radon kits, or visit our website at www.state.il.us/iema. • IEMA also has a list of measurement professionals who can test for you. For consumer protection, the Radon Industry Licensing Act (RILA) requires measurement professionals who test for radon and mitigation professionals who reduce radon in structures to be licensed by IEMA.
If your home has elevated radon, IEMA has a list of licensed radon reduction contractors (mitigators) who can fix your radon problem. IEMA recommends hiring a licensed mitigator because they have the proper equipment, specialized training and technical skills needed. Using a professional can offer peace of mind. Don’t let radon be a problem in your house.
Where Do You Get Information About Radon?
Courtesy of: The Illinois Emergency Management Agency-Division of Nuclear Safety Radon Program, 1035 Outer Park Drive, Springfield, Illinois 62704, Radon Information Line:1-800-325-1245 and at www.state.il.us/iema
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