Fires across Texas - What to do if there's a fire

To help prevent fires : (please forward this to anyone who needs it)

• Avoid burning trash. The greatest single cause of fires this year is when burning debris is not properly contained and sparks or burning trash blow into the air.
• If you smoke, please extinguish cigarettes in a wet nonflammable container. Never toss a cigarette out of a car window and don't put cigarettes out on the ground. Never leave a cigarette or candle unattended.
• Keep a fire extinguisher and water handy when working outdoors with equipment that gets hot or involves sparks such as welding equipment. Water down outdoor work areas in advance if possible
• Never grill under an underhang or ceilling that can ignite. The grill should be at least 15 feet away from any structure. Soak grill or fireplace ashes in water for a day before disposing of them. You'd be surprised how many fires start this way.
• Keep trees and shrubs pruned so vegetation is away from buildings. Remove dead vegatation and dispose of rubbish and debris.
• Have enough garden hose to reach all of the structures on your property.
• Stack firewood well away from your home and if possible uphill of it.
• As vehicle exhaust systems are often hot enough to ignite a fire, don't drive or park on high grass that is dry.
• If you live on acreage, create a 30 foot safety zone around your home. A safety zone is one where there is little or minimal vegetation. Keep grass low if any.

If you think a fire is coming your way:

• Evacuate and get to safety.
• Start a water sprinkler on your roof. Embers and flaming debris can travel great distances land on your roof and start a new fire.
• Clear gutters of leaves and debris.
• Start watering the areas around your home.
• Prepare for water storage; develop an external water supply such as a small pond well or pool.
• Turn off your gas lines. Shut off any natural gas, propane or fuel oil supplies at the source.
• Place your car in the driveout position and roll up windows.
• Disconnect automatic garage door openers so the doors can be opened by hand if the power goes out.

 

 

Damage from the Drought Home Maintenance
Some tips to mitigate the damage the drought can do
Here is a short list of maintenance tips for your home.

• The drought has caused a reduction in watering to our trees. However it's important to water longer around trees so the roots stay below the surface and keep the trees healthy. If the roots come up to the surface, they can become top heavy and fall over onto people, homes and autos. The roots can also do alot of damage to slab foundations.
• In addition to watering deeply along trees, keep all four sides of your foundation watered evenly otherwise you could have foundation damage.
• Check for cracks along window seaks and doors. The drought can cause the caulking and seals to reduce their efficiency. You don't want to find out in the first rain we get that you had cracks.
• Have a professional air conditioning contractor inspect and maintain your AC system as recommended by your manufacturer, especially flushing out the ac drains and hoses. These get clogged and cause alot of water damage in the attic.
• Have a plumber check your water heater. Water heaters only last about ten years. If yours is older than that, it might be time to replace. Most water heaters are in the attic so leakage could cause extensive water damage.
• Trim trees back, cut down weak trees or treat sick trees. Hurricane season is here so we might get strong winds this summer. Right now is a good time to get tree service at an affordable price. If you wait til the demand is higher, prices will be higher too.
• Check your clothes washer hoses to be sure they are in good condition as well as clean the clothes dryer exhaust duct, damper and space under the dryer.
• Always test your smoke detectors and carbon monoxide alarms

Mortgage Rates Decline

APRIL 28, 2011, 3:31 P.M.

By NATHAN BECKER
Mortgage rates declined in the latest week, with the average rate on 30-year fixed-rate mortgages edging lower, according to Freddie Mac's weekly survey of mortgage rates.

"Mortgage rates followed Treasury bond yields lower this week amid weak local economic data reports on business conditions and house prices," said Freddie Chief Economist Frank Nothaft. Mortgage rates generally track Treasury yields, which move inversely to Treasury prices.

Rates have slumped for months, setting record lows in the process, as yields on Treasurys slid amid economic uncertainty. But yields began to rise at the end of August. Mortgage rates generally track the yields, which move inversely to Treasury prices.

The 30-year fixed-rate mortgage averaged 4.78% for the week ended Thursday, down slightly from the prior week's 4.8% average and 5.06% a year ago. Rates on 15-year fixed-rate mortgages were 3.97%, down from 4.02% in the previous week and 4.39% a year earlier.

Five-year Treasury-indexed hybrid adjustable-rate mortgages averaged 3.51%, down from the prior week's 3.61% and 4% a year earlier. One-year Treasury-indexed ARMs were 3.15%, down from 3.16% and 4.25%, respectively.

To obtain the rates, the fixed-rate mortgages required payment of an average 0.7 point and the others required an average 0.6 point. A point is 1% of the mortgage amount, charged as prepaid interest.

Pending Home Sales Rise Again in March

March saw another increase in pending home sales, with contract activity rising unevenly in six of the past nine months, according to the National Association of REALTORS®.

The Pending Home Sales Index, a forward-looking indicator based on contract signings, rose 5.1 percent to 94.1 in March from a downwardly revised 89.5 in February. The index is 11.4 percent below 106.2 in March 2010; however, activity was at elevated levels in March and April of 2010 to meet the contract deadline for the home buyer tax credit.

The data reflects contracts but not closings, which normally occur with a lag time of one or two months.

Lawrence Yun, NAR chief economist, said home sales activity has shown an uneven but notable improvement. “Since reaching a cyclical bottom last June, pending home sales have posted an overall gain of 24 percent and demonstrate the market is recovering on its own,” he said. “The index means modest near-term gains in existing-home sales are likely, which would be even stronger if tight mortgage lending criteria returned to normal, safe standards.”

The PHSI in the Northeast fell 3.2 percent to 63.4 in March and is 18.4 percent below March 2010. In the Midwest the index rose 3.0 percent in March to 83.5 but is 16.6 percent below a year ago. Pending home sales in the South jumped 10.3 percent to an index of 110.2, but are 10.5 percent below March 2010. In the West the index increased 3.1 percent to 103.7 but is 4.1 percent below a year ago.

“Based on the current uptrend with very favorable affordability conditions, rising apartment rents, and ongoing job creation, existing-home sales should rise around 5 to 10 percent this year with sales growth of lower-priced homes likely to outperform high-end homes. That means the price trend will reflect more homes sold in the lower price ranges,” Yun said.

“The good news is that recent home buyers are staying well within budget, leading to exceptionally low loan-default rates among home buyers over the past two years,” he added.
Source: NAR

4 Signals It Might be Time to Buy (vs. Rent) Your Home

To rent or to buy: what used to be a given – that you would buy a home as soon as you could afford to – has become an agonizing conundrum for many a would-be homebuyer, in the face of the housing market’s big bust and super-slow recovery. Low prices seem to create a wide-open window of opportunity, but they also create the concern that prices will keep falling after closing. And that Catch-22 has hundreds of thousands of buyers-to-be stuck on the fence.
Fortunately, there are handful of life, mortgage and local market signals which indicate that the time *might* be right to hop – scratch that – leap off the fence and into homeownership:

Mortgage rates are going up. Home prices have been low for the last several years, and in fact are currently looking like they’re heading back down to the same levels they were at the depths of the real estate recession. During this same time frame, interest rates have also been low – this one-two punch has created record-high affordability for the last four years running, causing buyers to believe that this window of opportunity won’t be closing anytime soon.

While prices don’t look like they’ll be skyrocketing anytime soon, interest rates are another story. Rates have been on a rollercoaster over the past few months, and with inflation and Fed rates set to spike later this year, today’s low interest rates might be as good as they’re going to get for a long time to come. And I mean a very long time – in the next few years, governmental intervention in the mortgage markets is likely to wind down, and that means higher mortgage interest rates are not only inevitable, they’ll probably be here for a long, long time.

Mortgage rates on the rise are one signal that now might be the peak of home affordability, and the peak of the opportunity to buy.

Rents are going up. Rental rates in many areas are also on the rise – in fact, the foreclosure crisis has acted created additional demand on many markets’ rental housing inventory in several different ways. First, former homeowners who lost homes to foreclosure now need to rent; as well, buyers in foreclosure hot spots have been hesitant to buy, many electing to stay renters far beyond when they would have otherwise. On top of all that, super-tight lending guidelines have stopped even some who would like to buy homes from doing so. As a result, rental homes are in high demand – and rents are rising.

Rising rents at a time when the prices of homes for sale are low and, in some places, falling? One more signal that now might just be the time to buy. (Of course, where foreclosures are high, the chances of continued depreciation are, too – to offset this risk, have a long-term plan, to minimize the possibility that you’ll owe more than your home is worth when you need to sell. Read on for more on how to plan for the long term and minimize your homebuying risk.)

Your income and career are stable for the foreseeable future. The smartest homebuyers look to their lives, not just the market, for signals about when the time is right to buy. Homebuying is a long, long-term endeavor these days. The goal is to be able to commit to staying in the same place, geographically-speaking, for 7 to 10 years before you buy (more in a foreclosure-riddled market, less in an area that has been more recession-resistant). Most lenders will require that you’ve been at your job – or in the same general field of work – for at least two years before you buy. But that’s the bare minimum – beyond that, you don’t want to be barely beginning a career in which you think you may need to move sooner than that, nor do you want to buy when you’re advanced in your career, but in an industry which is dying or downsizing the workforce in your region (unless you have a strong Plan B).
When you get to the spot in your career where you can realistically project a stable income 7 to 10 years out, life might be giving you a green light to move forward on your homebuying dreams.

You can reasonably predict the home you’ll need in the years to come. Since successful homeownership requires that you be ready to be in the place for a good number of years, best practice is not just to buy a home with the space and number of rooms you need right now – rather, you should aim to buy the home you’ll need 5, 7 or even 10 years down the road (to the best of your ability to predict, of course). You might be a newlywed with no kids now, but you plan to have them in a few years. Or maybe you’re a newly minted empty nester right now, but can project that you’ll want to retire - and might not want to climb two flights of stairs to get to and from your bedroom - 10 years down the road. Before you buy, you should be in a position to buy the home that meets your future needs – not just your current ones; and that requires that you have a reasonable idea of your life vision and plan for the future.

If you’re able to predict – and afford, at today’s prices – a home with the space, amenity and geographic location you’ll need 7 to 10 years from now, you might be in a good phase of life to get off the rent vs. buy fence.

With that said. . . buying a home is a massive decision and includes multiple, long-term financial and lifestyle obligations, so if one or more of these signals are present for you, that doesn’t mean you have the green light to run out and buy a home tomorrow – rather, it’s a good sign you should begin down that path, if you’re so inclined. You’ll still need to do the work to make sure your personal finances and holistic life picture are also in alignment before you buy, as well of the work it takes to ensure that your real estate and mortgage decisions are sustainable and smart, over the long-term.

It’s not overkill to check in with a mortgage pro, a tax pro, a local real estate broker or agent and a financial planner to make sure all your ducks – not just one - are in a row before you make your move.

Wealthy Buyers Re-emerge in Real Estate

Wealthy Buyers Re-emerge in Real Estate

The rich have returned to the real estate market and are taking advantage of big bargains in luxury homes. Sales of million-dollar homes and condos increased last year in all 20 major metro areas — with some cities seeing an 18.6 percent increase in high-end home sales, according to DataQuick Information Systems. The increase follows four consecutive years of declines in million-dollar homes.

The market that fared the best in high-dollar real estate: San Jose, Calif., which boasted a 27.4 percent increase in sales last year in million-dollar homes. Honolulu also saw a big spike in million-dollar sales — a 26 percent increase — as well as New York, where million-dollar home sales rose nearly 25 percent.

In Washington, D.C., million-dollar home sales grew by 20 percent, as government workers continued to help the high-end real estate market there. Washington, D.C., has recently been ranked as one of the highest paid cities, as well as best educated place in the country.

Other cities with big gains in million-dollar home sales include San Diego (14 percent) and Nashville (13 percent).

"It hasn't been a good six months for all people, but it was a good six months for rich people," Glenn Kelman, CEO of Seattle-based real estate brokerage Redfin, told CNNMoney. "When Wall Street goes up, rich people buy homes."

Source: “Who’s Buying Homes? The Rich,” CNNMoney (March 7, 2011)

To purchase Austin, Houston, or Colorado Real Estate feel free to contact Austin, Houston, & Colorado Realtor, Zachary Miller at Miller & Associates:  12400 W Hwy 71 Austin, TX 78738  1-800-965-3013x1 for immediate assistance.

4 Model Homes Tricks to Use on Your Listings

4 Model Homes Tricks to Use on Your Listings

Model homes are designed to give buyers the allusion of perfection. Mary Cook, an interior designer with Mary Cook & Associates, has built her business around "merchandising" model homes for builders nationwide, and she says sellers could learn from tricks of model merchandisers in preparing their own home for sale.

Here are a few tips she recently shared with the Chicago Tribune.

1. First impressions count. “I'd put the effort right into what they see when they walk through the door,” Cook says. “If you ‘capture’ them and elevate their mood right away, it will carry the house better than if you had to earn their ‘uplifted emotions’ later on in other rooms of the house.”

2. Make sure scale and proportion fit. Cook says many sellers struggle with high ceilings in McMansions and what to do with those two-story walls. “They say, do I hang pictures at 14 feet? They're hesitant to go out and buy a big, monster piece of art, but if a professional designer would see that you've done that, they'd say it's perfect, and you're done,” Cook says. “If you have a whole bunch of little things, putting them in a group together on the wall can have the same effect, though there's an art to grouping them.”

3. Use color to enhance. Staying in safety neutral color zone, she says, isn’t always going to work, but be careful in the color you choose because it can have a big effect on buyers. “I remember years ago we did a model home where we painted the walls a banana yellow, and it wasn't received well at all,” Cook says. “Older people would catch a glimpse of themselves in the mirror, and it was harsh; they just didn't look good. We changed it to a peachy color, and people seemed to feel better in there. It goes back to elevating the buyer's mood."

4. Stand out. “Presume that the buyer has three houses lined up, and they're all at the right price,” Cook says. “You have to identify all the reasons why somebody would possibly want to live there and what makes your place different.” For example, she’ll often have a basket on the countertop filled with a collection of dining brochures, maps, fitness center brochures, activity calendars from the park district, nearby restaurant menus, local hospital information, and information on the local schools--any information that highlights the benefits of living there.

Source: “Selling? Set a Tone for Buyers,” Chicago Tribune (March 6, 2011)

To purchase Austin, Houston, or Colorado Real Estate feel free to contact Austin, Houston, & Colorado Realtor, Zachary Miller at Miller & Associates:  12400 W Hwy 71 Austin, TX 78738  1-800-965-3013x 1 for immediate assistance.

Future of 30-Year Mortgages at Risk?

Future of 30-Year Mortgages at Risk?


Proposals to phase out Fannie Mae and Freddie Mac may make 30-year fixed-rate mortgages harder to find, housing experts say.

An outline drafted by the Treasury Department, the Department of Housing and Urban Development, and the White House and circulated last month calls for winding down Fannie and Freddie over the next five to seven years. Congress continues to debate the future of Fannie and Freddie, and how and whether it should move to phase out the government-sponsored enterprises (GSEs). For its part, the Obama administration has argued for scrapping the GSEs, but replacing them with some form of federal involvement in mortgage financing.

But housing experts warn that 30-year fixed rate mortgages — a popular choice among buyers — might become harder to find and more expensive without Fannie and Freddie to buy these loans. Banks may be less willing to extend credit at a fixed rate over such a long term, housing experts note, since investors often prefer loans with adjustable rates rather than loans with longer terms, which expose them to interest rate risk.

“Traditionally, banks have been less willing to keep 30-year fixed-rate mortgages on their balance sheets, so in the absence of a vibrant securitization market, banks would more heavily favor adjustable-rate products,” John Mechem, a spokesman for the Mortgage Bankers Association, told The New York Times.

There is a lot of uncertainty about the process of phasing out Fannie and Freddie and how it will affect mortgage products, Barry Zigas, the director of housing policy at the Consumer Federation of America, told The New York Times.

Alex J. Pollock, a former chief executive of the Federal Home Loan Bank of Chicago, told The New York Times that he believes 30-year loans would remain available regardless of a federal guarantee, but they might be more difficult to find and lenders might require larger down payments and better credit scores.

“One of the reasons that American housing finance is in such bad shape right now is the 30-year mortgage,” Pollock argues. “For many people, it’s not at all clear that that’s the best product.”

Source: “A Plan to Phase Out Fannie Mae and Freddie Mac,” The New York Times (March 6, 2011) and “Without Loan Giants, 30-Year Mortgage May Fade Away,” The New York Times (March 4, 2011)

To purchase Austin, Houston, or Colorado Real Estate feel free to contact Austin, Houston, & Colorado Realtor, Zachary Miller at Miller & Associates:  12400 W Hwy 71 Austin, TX 78738  1-800-965-3013x 1 for immediate assistance.

7 Tips for Staging Your Home

By: G. M. Filisko

Published: March 19, 2010

Make your home warm and inviting to boost your home’s value and speed up the sale process.

1. Start with a clean slate

Before you can worry about where to place furniture and which wall hanging should go where, each room in your home must be spotless. Do a thorough cleaning right down to the nitpicky details like wiping down light switch covers. Deep clean and deodorize carpets and window coverings.

2. Stow away your clutter

It’s harder for buyers to picture themselves in your home when they’re looking at your family photos, collectibles, and knickknacks. Pack up all your personal decorations. However, don’t make spaces like mantles and coffee and end tables barren. Leave three items of varying heights on each surface, suggests Barb Schwarz ofhttp://www.stagedhomes.com/ in Concord, Pa. For example, place a lamp, a small plant, and a book on an end table.

3. Scale back on your furniture

When a room is packed with furniture, it looks smaller, which will make buyers think your home is less valuable than it is. Make sure buyers appreciate the size of each room by removing one or two pieces of furniture. If you have an eat-in dining area, using a small table and chair set makes the area seem bigger.

4. Rethink your furniture placement

Highlight the flow of your rooms by arranging the furniture to guide buyers from one room to another. In each room, create a focal point on the farthest wall from the doorway and arrange the other pieces of furniture in a triangle around the focal point, advises Schwarz. In the bedroom, the bed should be the focal point. In the living room, it may be the fireplace, and your couch and sofa can form the triangle in front of it.

5. Add color to brighten your rooms

Brush on a fresh coat of warm, neutral-color paint in each room. Ask your real estate agent for help choosing the right shade. Then accessorize. Adding a vibrant afghan, throw, or accent pillows for the couch will jazz up a muted living room, as will a healthy plant or a bright vase on your mantle. High-wattage bulbs in your light fixtures will also brighten up rooms and basements.

6. Set the scene

Lay logs in the fireplace, and set your dining room table with dishes and a centerpiece of fresh fruit or flowers. Create other vignettes throughout the home—such as a chess game in progress—to help buyers envision living there. Replace heavy curtains with sheer ones that let in more light.

Make your bathrooms feel luxurious by adding a new shower curtain, towels, and fancy guest soaps (after you put all your personal toiletry items are out of sight). Judiciously add subtle potpourri, scented candles, or boil water with a bit of vanilla mixed in. If you have pets, clean bedding frequently and spray an odor remover before each showing.

7. Make the entrance grand

Mow your lawn and trim your hedges, and turn on the sprinklers for 30 minutes before showings to make your lawn sparkle. If flowers or plants don’t surround your home’s entrance, add a pot of bright flowers. Top it all off by buying a new doormat and adding a seasonal wreath to your front door.

More from HouseLogic

Spring cleaning guide 

Green cleaning products for the bathroom

Green cleaning products for the kitchen

Other web resources

How to make a small room look larger 

How to arrange bedrooms 

To purchase Austin, Houston, or Colorado Real Estate feel free to contact Austin, Houston, & Colorado Realtor, Zachary Miller at Miller & Associates:  12400 W Hwy 71 Austin, TX 78738  800.965.3013 x 1 for immediate assistance.

5 Tips to Prepare Your Home for Sale

5 Tips to Prepare Your Home for Sale

By: G. M. Filisko

Published: February 10, 2010

Working to get your home ship-shape for showings will increase its value and shorten your sales time.

1. Have a home inspection

Be proactive by arranging for a pre-sale home inspection. For $250 to $400, an inspector will warn you about troubles that could make potential buyers balk. Make repairs before putting your home on the market. In some states, you may have to disclose what the inspection turns up.

2. Get replacement estimates

If your home inspection uncovers necessary repairs you can’t fund, get estimates for the work. The figures will help buyers determine if they can afford the home and the repairs. Also hunt down warranties, guarantees, and user manuals for your furnace, washer and dryer, dishwasher, and any other items you expect to remain with the house.

3. Make minor repairs

Not every repair costs a bundle. Fix as many small problems—sticky doors, torn screens, cracked caulking, dripping faucets—as you can. These may seem trivial, but they’ll give buyers the impression your house isn’t well maintained.

4. Clear the clutter

Clear your kitchen counters of just about everything. Clean your closets by packing up little-used items like out-of-season clothes and old toys. Install closet organizers to maximize space. Put at least one-third of your furniture in storage, especially large pieces, such as entertainment centers and big televisions. Pack up family photos, knickknacks, and wall hangings to depersonalize your home. Store the items you’ve packed offsite or in boxes neatly arranged in your garage or basement.

5. Do a thorough cleaning

A clean house makes a strong first impression that your home has been well cared for. If you can afford it, consider hiring a cleaning service.

If not, wash windows and leave them open to air out your rooms. Clean carpeting and drapes to eliminate cooking odors, smoke, and pet smells. Wash light fixtures and baseboards, mop and wax floors, and give your stove and refrigerator a thorough once-over.

Pay attention to details, too. Wash fingerprints from light switch plates, clean inside the cabinets, and polish doorknobs. Don’t forget to clean your garage, too.

More from HouseLogic

Develop a Landscape Plan to Fit Your Budget

Spring Cleaning Guide

To purchase Austin, Houston, or Colorado Real Estate feel free to contact Austin, Houston, & Colorado Realtor, Zachary Miller at Miller & Associates:  12400 W Hwy 71 Austin, TX 78738  800.965.3013 x 1 for immediate assistance.

More Americans Confident About Home Ownership

More Americans Confident About Home Ownership

Americans are more confident about the stability of home prices than they were at the beginning of 2010, according to Fannie Mae's latest national housing survey, conducted between October 2010 and December 2010.. And when it comes to home ownership, younger Americans are particularly optimistic, the survey finds.
　
Nearly 80 percent of all respondents, including home owners and renters, surveyed said they thought housing prices would hold steady or increase over the next 12 months--which is up from 73 percent in January 2010. In fact, survey respondents expressed more confidence over the stability of home prices than they did about the overall strength of the economy. Sixty-one percent said the economy is heading on the wrong track.
　
Young Americans, Hispanics, and African-Americans were the most positive about their views on home ownership among the general population, according to the survey. Nearly 60 percent of Generation Y respondents (those between 18-34 years old) say that buying a home offers a lot of potential as an investment. Also, more than one-third of Hispanics and African Americans say they plan to buy a home within the next three years, compared to one in four of the general population.
　
"We are also seeing encouraging signs in the positive attitudes toward home ownership among younger Americans, despite the severe impact of the housing crisis on Generation Y," says Doug Duncan, Fannie Mae’s chief economist. "But most respondents to our survey continue to lack confidence in the strength of the economic recovery, and they are less optimistic about their ability to buy a home in the years ahead. This sense of uncertainty is weighing on the housing recovery today and reshaping expectations for housing for the future."
Source: "Fannie Mae’s Latest National Housing Survey Shows Key Changes in Americans’ Attitudes Toward Housing and the Economy," RISMedia (March 1, 2011)

To purchase Austin, Houston, or Colorado Real Estate feel free to contact Austin, Houston, & Colorado Realtor, Zachary Miller at Miller & Associates:  12400 W Hwy 71 Austin, TX 78738  800.965.3013 x 1 for immediate assistance.

The 5 New Rules of Real Estate

Published March 02, 2011 | FoxNews.com

Read more: http://www.foxnews.com/leisure/2011/03/02/5-new-rules-real-estate/#ixzz1FvjeWplU

We’re about to enter the peak season for real estate shopping: spring. But, before you jump in with both feet, you should know a lot has changed since the last time you may have bought or sold a house. It’s like dating — all of those old rules you used to know have changed over the past few years. It’s important that your approach to home ownership reflects the realities of the current market, and not those of the housing boom. Here are a few of the new real estate rules to help guide you this spring:
1. Then: Don’t buy now, home values have further to fall
Now: It’s a fool’s errand trying to time the bottom. Economists don’t even agree on when the bottom will occur, so the average person probably won’t be able to time it perfectly. While it’s true that home values have further to fall in many areas this year, interest rates will likely rise, offsetting any savings that may come from lower home values.
2. Then: It’s better to buy than to rent
Now: It’s a buyer’s market across most of the U.S. But the time frame for how long you need to live in your home varies greatly across markets. A good rule of thumb is, if you are going to live in your home at least 5-7 years, then buying makes sense in most places. Home values will likely stay flat for several years after we reach bottom at the end of this year, but if you’re planning to live in your home long term, you can ride out the years where appreciation remains flat and come out ahead in the end.
3. Then: You should spend 1/3 of your monthly gross income on your mortgage
Now: During the bubble, many people listened to the advice that they should "stretch" to buy a house. Now, many want to avoid being "house poor." The standard rule of thumb was to spend no more than 30 percent of your pretax monthly income on your mortgage. Now, many financial experts recommend spending no more than 25 percent. But really, only you can truly figure out what you can, or want to afford based on your various goals (college and retirement savings), lifestyle (kids, travel, special interests) income and debts. So take the time to do your own math.
4. Then: When it comes to re-sale value think: Location, Location, Location
Now: The suburbs are often thought of as the more desirable place to live, compared to the city (better schools, lower crime). So one would think homes in the suburbs would have weathered the housing downturn better than homes in the city. However, according to analysis from Zillow, in most major metros (with some exceptions) home values closer to city center held up better than those in the ‘burbs.
5. Then: Only refinance if rates are dropping
Now: Everyone jumped at the chance to refinance when rates fell below 4 percent. Now that rates are higher it may seem like the opportunity to save money on your mortgage is over. Not necessarily. While rates may have inched higher, they are still at overall historic lows and the general consensus is rates will continue to trend up. So, if you haven’t refinanced yet, even though rates are a bit higher, start shopping for mortgage quotes today. You haven’t missed the boat yet.


Read more: http://www.foxnews.com/leisure/2011/03/02/5-new-rules-real-estate/#ixzz1FvjFmpGv

To purchase Austin, Houston, or Colorado Real Estate feel free to contact Austin, Houston, & Colorado Realtor, Zachary Miller at Miller & Associates:  12400 W Hwy 71 Austin, TX 78738  800.965.3013 x 1 for immediate assistance.

Mortgage Rates Drop Again This Week

Mortgage Rates Drop Again This Week 
For the third straight week, long-term mortgage rates inched down, according to Freddie Mac’s weekly mortgage survey. 

The 30-year fixed rate mortgage averaged 4.87 percent for the week, down from last week’s 4.95 percent. The rate was 4.97 percent at this time last year. 

The 15-year mortgage rate also dipped for the week, averaging 4.15 percent, down from last week’s 4.22 percent. 

The 5-year adjustable-rate mortgage averaged 3.72 percent, which is a drop from last week’s 3.8 percent average.

"Mortgage rates saw an overall improvement this week,” says Frank Nothaft, Freddie Mac’s chief economist. “Interest rates for 30-year fixed mortgages were almost 0.2 percentage points below this year's high set just three weeks ago.” This means that home buyers can now expect to pay $263 less per year on a $200,000 loan, Nothaft adds. 

Source: “30-Year Fixed-Rate Mortgage Drops for Third Consecutive Week,” Freddie Mac (March 3, 2011)

To purchase Austin, Houston, or Colorado Real Estate feel free to contact Austin, Houston, & Colorado Realtor, Zachary Miller at Miller & Associates:  12400 W Hwy 71 Austin, TX 78738  800.965.3013 x 1 for immediate assistance.

Tax Tips for Homeowners Looking Ahead to 2010 Returns

Tax Tips for Homeowners Looking Ahead to 2010 Returns

By: Mike DeSenne
Published: February 22, 2010
From energy tax credits to vacation home deductions, check out these tax tips for homeowners looking ahead to 2010 returns.

Claim remaining energy tax credits

It's time to get cracking if you didn't exhaust your full allotment of residential energy tax credits during 2009. Although tax credits for big projects like residential wind turbines and solar energy systems have no upper limit and are good through 2016, energy tax credits capped at $1,500 expire at the end of 2010. Eligible capped projects include new windows and doors, insulation, roofing, water heaters, HVAC, and biomass stoves.

Here's how it works with capped federal credits: You can earn energy tax credits worth 30% of the cost of qualifying improvements, but the total tax credits can't exceed $1,500 combined for 2009 and 2010. So if you only took, say, $700 worth of capped energy credits on your 2009 tax return, you're still due for another $800 in credits in 2010. Some projects include the cost of installation--a furnace, for example--while others, such as insulation, are limited to the cost of materials.

Max out tax benefits of a vacation home

Use a vacation home wisely, and it'll provide a break from taxes as well as the hustle and bustle of everyday life. The rules on tax deductions for vacation homes can get a bit tricky, but understanding and adhering to them can yield many happy tax returns.

If your vacation home is truly a vacation home meant for your personal enjoyment, as opposed to a rental-only income property, you can usually deduct mortgage interest and real estate taxes, just as you would on your main home. You can even rent out the home for up to 14 days during the year without getting taxed on the rental income. Not bad.

Now, let's say you want to rent out your vacation home for more than 14 days in 2010, but also use it yourself from time to time. To maximize the tax benefits, you need to keep tabs on how many days you use your vacation home. By restricting your annual personal use to fewer than 15 days (or 10% of total rental days, whichever is greater), you can treat your vacation home as a rental-only income property for tax purposes.

Why is that a big deal? In addition to mortgage interest and real estate taxes, rental-only income properties are eligible for a slew of other tax deductions for everything from utilities and condo fees to housecleaning and repairs. Deductions are limited once personal use exceeds 14 days (or 10% of total rental days), so get out your calendar now to strategically plot your vacations.

Take advantage of tax breaks for the military

In salute to members of the armed forces serving overseas who want to purchase a home, the IRS is extending a lucrative tax perk for military personnel. If you spent at least 90 days abroad performing qualified duty between Jan. 1, 2009, and April 30, 2010, you have an extra year to earn a homebuyer tax credit. In addition to uniformed service members, workers in the Foreign Service and in the intelligence community are eligible.

Thanks to this extension of the homebuyer tax credit, qualifying military personnel have until April 30, 2011, to sign a contract on a new home. The deal must close before July 1, 2011. Just like non-military buyers, first-time homebuyers can earn a tax credit worth up to $8,000, and longtime homeowners can earn a credit of up to $6,500. The same income restrictions and $800,000 cap on home prices apply.

Military personnel can also get a break if official duty calls and they're forced to move for an extended period. Normally, the homebuyer tax credit needs to be repaid if you sell your home within three years, but this requirement is waived for uniformed service members, Foreign Service workers, and intelligence community personnel. The new extended duty posting doesn't need to be overseas, but it must be at least 50 miles from your principal residence.

Challenge your real estate assessment

You can't do much about the rate at which your home is taxed, but you can try to do something about how your home is valued for taxation purposes in 2010. The process varies depending where you live, but in general local governments conduct a periodic real estate assessment to determine how much your home is worth. That real estate assessment figure is used to calculate your property tax bill.

You can usually appeal your real estate assessment if you think it's too high. Contact your local assessor's office to find out the procedure, and be prepared to do some research. There's often no charge to request a review of your assessment.

Look for errors. You probably received an assessment letter in the mail, and many local governments provide the information online as well. Make sure the number of bedrooms and bathrooms is accurate, and the lot size is correct. Also check the assessed value of comparable homes in your area. If they're being assessed for less than your home, you might have a case for relief.

Even if your assessment is accurate and comparable homes are being taxed at the same rate, there might be another route to tax savings. Ask your assessor's office about available property tax exemptions. Local governments often give breaks to seniors, veterans, and the disabled, among others.

This article provides general information about tax laws and consequences, but is not intended to be relied upon by readers as tax or legal advice applicable to particular transactions or circumstances. Consult a tax professional for such advice; tax laws may vary by jurisdiction.

Mike DeSenne is Online Managing Editor for taxes, finances, and insurance at HouseLogic.com, and the former Executive Editor of SmartMoney.com. He likes to do his taxes by hand, much to the dismay of his accountant.

To purchase Austin, Houston, or Colorado Real Estate feel free to contact Austin, Houston, & Colorado Realtor, Zachary Miller at Miller & Associates:  12400 W Hwy 71 Austin, TX 78738  800.965.3013 x 1 for immediate assistance.

10 Common Errors Home Owners Make When Filing Taxes

10 Common Errors Home Owners Make When Filing Taxes

By: G. M. Filisko
Published: January 25, 2011
Don’t rouse the IRS or pay more taxes than necessary—know the score on each home tax deduction and credit.

Sin #1: Deducting the wrong year for property taxes

You take a tax deduction for property taxes in the year you (or the holder of your escrow account) actually paid them. Some taxing authorities work a year behind—that is, you’re not billed for 2010 property taxes until 2011. But that’s irrelevant to the feds. 

Enter on your federal forms whatever amount you actually paid in 2010, no matter what the date is on your tax bill. Dave Hampton, CPA, tax manager at the Cincinnati accounting firm of Burke & Schindler, has seen home owners confuse payments for different years and claim the incorrect amount.

Sin #2: Confusing escrow amount for actual taxes paid

If your lender escrows funds to pay your property taxes, don’t just deduct the amount escrowed, says Bob Meighan, CPA and vice president at TurboTax in San Diego. The regular amount you pay into your escrow account each month to cover property taxes is probably a little more or a little less than your property tax bill. Your lender will adjust the amount every year or so to realign the two.

For example, your tax bill might be $1,200, but your lender may have collected $1,100 or $1,300 in escrow over the year. Deduct only $1,200. Your lender will send you an official statement listing the actual taxes paid. Use that. Don’t just add up 12 months of escrow property tax payments.

Sin #3: Deducting points paid to refinance

Deduct points you paid your lender to secure your mortgage in full for the year you bought your home. However, when you refinance, says Meighan, you must deduct points over the life of your new loan. If you paid $2,000 in points to refinance into a 15-year mortgage, your tax deduction is $133 per year.

Sin #4: Failing to deduct private mortgage insurance

Lenders require home buyers with a downpayment of less than 20% to purchase private mortgage insurance (PMI). Avoid the common mistake of forgetting to deduct your PMI payments. However, note the deduction begins to phase out once your adjusted gross income reaches $100,000 and disappears entirely when your AGI surpasses $109,000.

Sin #5: Misjudging the home office tax deduction

This deduction may not be as good as it seems. It often doesn’t amount to much of a deduction, has to be recaptured if you turn a profit when you sell your home, and can pique the IRS’s interest in your return. Hampton’s advice: Claim it only if it’s worth those drawbacks.

Sin #6: Missing the first-time home buyer tax credit

If you met the midyear 2010 deadlines, don’t forget to take this tax credit into account when filing.

Even if you missed the 2010 deadlines, you still might be in luck: Congress extended the first-time home buyer credit for military families and other government workers on assignment outside the United States. If you meet the criteria, you have until June 30, 2011, to close on your first home and qualify for the tax credit of up to $8,000.

Sin #7: Failing to track home-related expenses

If the IRS comes a-knockin’, don’t be scrambling to compile your records. Many people forget to track home office and home maintenance and repair expenses, says Meighan. File away documents as you go. For example, save each manufacturer's certification statement for energy tax credits, insurance company statements for PMI, and lender or government statements to confirm property taxes paid.

Sin #8: Forgetting to keep track of capital gains

If you sold your main home last year, don’t forget to pay capital gains taxes on any profit. However, you can exclude $250,000 (or $500,000 if you’re a married couple) of any profits from taxes. So if you bought a home for $100,000 and sold it for $400,000, your capital gains are $300,000. If you’re single, you owe taxes on $50,000 of gains. However, there are minimum time limits for holding property to take advantage of the exclusions, and other details. Consult IRS Publication 523. 

Sin #9: Filing incorrectly for energy tax credits

If you made any eligible improvement, fill out Form 5695. Part I, which covers the 30%/$1,500 credit for such items as insulation and windows, is fairly straightforward. But Part II, which covers the 30%/no-limit items such as geothermal heat pumps, can be incredibly complex and involves crosschecking with half a dozen other IRS forms. Read the instructions carefully.

Sin #10: Claiming too much for the mortgage interest tax deduction

You can deduct mortgage interest only up to $1 million of mortgage debt, says Meighan. If you have $1.2 million in mortgage debt, for example, deduct only the mortgage interest attributable to the first $1 million.

This article provides general information about tax laws and consequences, but is not intended to be relied upon by readers as tax or legal advice applicable to particular transactions or circumstances. Readers should consult a tax professional for such advice, and are reminded that tax laws may vary by jurisdiction.

G.M. Filisko is an attorney and award-winning writer who was once mortified to receive a letter from the IRS—but relieved to learn the IRS had simply found a math error in her favor. A frequent contributor to many national publications including AARP.org, Bankrate.com, and the American Bar Association Journal, she specializes in real estate, business, personal finance, and legal topics.

To purchase Austin, Houston, or Colorado Real Estate feel free to contact Austin, Houston, & Colorado Realtor, Zachary Miller at Miller & Associates:  12400 W Hwy 71 Austin, TX 78738  800.965.3013 x 1 for immediate assistance.

Schedule A Form: 6 Home Deduction Traps

Schedule A Form: 6 Home Deduction Traps

By: Barbara Eisner Bayer
Published: January 27, 2011
Get an “A” on your Schedule A Form: Dodge these tax deduction pitfalls to save time, money, and an IRS investigation.

Trap #1: Line 6 - real estate taxes

Your monthly mortgage payment often includes money for a tax escrow, from which the lender pays your local real estate taxes.

The money you send the bank may be more than what the bank pays for your taxes, says Julian Block, a tax attorney and author of Julian Block’s Home Seller’s Guide to Tax Savings. That will lead you to putting the wrong number on Schedule A.

Example:

• Your monthly payment to the lender: $2,000 for mortgage + $500 escrow for taxes

• Your annual property tax bill: $5,500

Now do the math:

• Your bank received $6,000 for real estate taxes, but only paid $5,500. It may keep the extra $500 to apply to the next tax bill or refund it to you at some point, but meanwhile, you’re making a mistake if you enter $6,000 on Schedule A.

• Instead, take the number from Form 1098—which your bank sends you each year—that shows the actual taxes paid.

Trap #2: Line 6 - tax calculations for recent buyers and sellers

If you bought or sold a home in the middle of 2010, figuring out what to put on line 6 of your Schedule A Form is tricky.

Don’t simply enter the number from your property tax bill on line 6 as you would if you owned the house the whole year. If you bought or sold a house in midyear, you should instead use the property tax amount listed on your HUD-1 closing statement, says Phil Marti, a retired IRS official.

Here’s why: Generally, depending on the local tax cycle, either the seller gives the buyer money to pay the taxes when they come due or, if the seller has already paid taxes, the buyer reimburses the seller at closing. Those taxes are deductible that year, but won’t be reflected on your property tax bill.

Trap #3: Line 10 - properly deducting points

You can deduct points paid on a refinance, but not all at once, says David Sands, a CPA with Buchbinder Tunick & Co LLP. Rather, you deduct them over the life of your loan. So if you paid $1,000 in points for a 10-year refinance, you’re entitled to deduct only $100 per year on your Schedule A Form.

Trap #4: Line 10 - HELOC limits

If you took out a home equity line of credit (HELOC), you can generally deduct the interest on it only up to $100,000 of debt each year, says Matthew Lender, a CPA with EisnerLubin LLP. 

For example, if you have a HELOC for $200,000, the bank will send you Form 1098 for interest paid on $200,000. But you can deduct only the interest paid on $100,000. If you just pull the number off Form 1098, you’ll deduct more than you’re entitled to.

Trap #5: line 13 - Private mortgage insurance

You can deduct PMI on your Schedule A Form, as long as you started paying the insurance after Dec. 31, 2006. (Also, this is also a good time to review your PMI: You might be able to cancel your PMI altogether because you’ve had a change in loan-to-value status.)

Trap #6: line 20 - casualty and theft losses

You can deduct part or all of losses caused by theft, vandalism, fire, or similar causes, as well as corrosive drywall, but the process isn’t always obvious or simple:

• Only deduct losses that are greater than 10% of your adjusted gross income (line 38 of Form 1040).

• Fill out Form 4684, which involves complex calculations for the cost basis and fair market value.  This form gives you the number you need for line 20. 

Bottom line on line 20: If you’ve got extensive losses, it’s best to consult a tax pro. “I wouldn’t do it myself, and I’ve been dealing with taxes for 40 years,” says former IRS official Marti.

Barbara Eisner Bayer has written about personal finance for the past 17 years. She works hard to translate IRSese into plain English. She has unbounded respect for CPAs.

To purchase Austin, Houston, or Colorado Real Estate feel free to contact Austin, Houston, & Colorado Realtor, Zachary Miller at Miller & Associates:  12400 W Hwy 71 Austin, TX 78738  800.965.3013 x 1 for immediate assistance.