“VIEWS YOU CAN USE”

“There’s no place like home” so the famous saying from The Wizard of Oz goes. And this month’s MMG Monthly is all about home. These days, more and more people are working from home and that is why you’ll find tips below on creating the perfect home office. Also these days, saving money and spending wisely are important to most all of us. Be sure to check out some simple and easy ways to save money at home…and fatten up your bank account in the process! As always, please feel free to forward this issue to friends, family members and coworkers… or let me know if they’d like to enjoy their own free subscription. If you need any personal assistance at this time, simply call or email.

Creating the Perfect Home Office

	Whether you work from home or simply need a home office to manage your personal affairs, having an office that is organized and functional makes a big difference. Here are some tips for creating the perfect home office. Layout – There is no bigger mistake you can make than purchasing office furniture or equipment without knowing exactly where you’ll be placing it in the room. Before you buy any new furniture, make sure you measure and plot where each piece will go, and don’t forget to account for electrical and cable outlets. Furniture – A desk that’s roughly 60-inches wide, 30-inches deep, and 29-inches high is not only conducive to work, but it’s highly functional in terms of storing the items you use regularly. Your chair should be comfortable, but its primary function should be to promote healthy posture. Good posture will facilitate strong mental focus and will help to alleviate back and neck pain. Lighting – Don’t underestimate the importance of quality lighting. If you’re lucky enough to have a window in your office, this should serve as your primary light source during the day. Natural light is easy on the eyes and promotes physical energy as well as a good mood. It’s also free. Large lights like floor lamps and ceiling lights should have the ability to be dimmed. Also, make sure your desk lamp is equipped with a light bulb that’s easy on the eyes. These “soft” light bulbs can be found anywhere, from office supply stores to grocery stores. Storage – Identifying the type of items you need to store, as well as the quantity, will help you to determine an appropriate course of action. Here are a few helpful hints. Closets are great for storage. Not only can they house filing cabinets, but they are also perfect for storing the items you don’t need to access on a regular basis. This helps to maximize the actual workspace of your office. Shelving is one of the most versatile options for storage. Shelves can be purchased cheaply and come in a variety of sizes. They are easily installed and take up zero floor space. Don’t forget about your garage. When it comes to older files or anything that is rarely accessed, a garage can provide ample storage space. Word to the wise, however, the garage can be a dirty place. Plan accordingly by storing paper items in boxes and wrapping equipment in protective plastic. Visit a store that’s dedicated to home organization. Nowadays it seems like nearly every mall has a store of this kind. You’d be surprised at some of the inexpensive, space-saving storage options available.   Wall Organizers – Dry erase boards, chalkboards, corkboards, and magnetic boards are fantastic tools for keeping clutter off your desk. They are inexpensive and available everywhere in a variety of sizes. There are even combination boards that provide countless options. Cords - Never underestimate the importance of power strips as they provide the ability to plug multiple devices into one outlet. The better power strips also provide surge protection to the equipment that’s plugged into them. In addition, cord covers are a great way to not only hide cords but to keep them from becoming a tangled mess. They can be purchased quite cheaply at any electronics store. Décor – Last but not least, once you’ve got all the necessities in, don’t overlook decor. Certificates, diplomas, awards, trophies, and pictures not only complement an office, but they also help to personalize it. Follow these simple steps, and more organization, function, and focus could be right around the corner.

Saving Money at Home

	Saving money doesn’t have to be a challenge…if we’re willing to make some changes. Here are some main areas that many of us waste money unnecessarily…and some simple steps to ensure a bright financial 2010. Meals at the Workplace Working Americans spend an average of $6 when they buy their lunch at work. The average cost drops to $2 when we bring our lunch from home. That’s a difference of $4 a day, or $20 a week, or over $1,000 a year. Consider adding this savings to your savings account, and after just a few months you’ll really see the difference add up. Utilize the Public Library By obtaining a library card, you can save on books, magazines, and especially DVD rentals. If you average 3 DVD rentals a month, you’re spending approximately $144 a year. That’s $144 that could be deposited into your bank account. For every book you check out, find out what it would have cost if you’d bought it. Deposit that amount into your account, too. Don’t be Afraid to Ask for Discounts If you’re paying bills or buying items such as airline tickets based solely on the price you’re quoted, you could be wasting money. Many companies provide discounts on goods and services but only for those customers who request them. It never hurts to ask so start asking. Save Gas Consult the owner’s manual of your car and learn about the manufacturer’s recommendations for optimal gas mileage. Put the suggestions into action and see what happens. After a month, you should be able to see if you’re spending less on fuel. Take the savings and stash it away. Sell Your Junk Come Springtime, go through your closets, garage, and CD collection. Figure out which items you no longer use. You can either hold a garage sale or locate stores which buy and sell used merchandise, and sell the items to them. Do Away with Disposable From razors and batteries to paper towels and plastic bags, your home is filled with products which are meant to be thrown away. Most of these disposable items have either a permanent or semi-disposable counterpart. Switching over to these more durable items can yield a savings of $4 a week or $200 a year. Get the Most Out of Your Utilities Many of us are overspending on our utility bills for no other reason than our own apathy. If you haven’t already switched over to low-flow shower heads and toilets it’s probably time to do so. Also, get into the habit of turning off lights when not in use. Did you know that most utility companies offer a free online energy audit? This way you can see exactly where you’re wasting money. Here’s to a bright financial future in 2010!

Good Day! Here we are fast approaching the end of January with the fresh promise of a new year remaining on the minds of many. My purpose today, yesterday and in the future is always to post interesting, relevant content. To efficiently address this activity I’m using this post to be certain the content arrives at all target destinations. Basically, a test!

Dear Clients, Colleagues, Partners and Friends,

Thanksgiving is one of my favorite Holidays. There is no division due to religion, it is not for one single group, and there are no conflicts. Thanksgiving is for all of us. All you need do is be thankful. And there is so much to be thankful for – although it may not be so easy to see at times.

We sometimes stay focused on the things that are wrong or that need improvement…and yes, things can always be better. And that view is needed at times, so we can constantly improve. But we also need to take a breath, a step back, and count all of our blessings. It’s not just the things we have – it’s also the problems, issues, or heartaches we don’t have…because things could be a lot worse.

A business leader once said, “In life, you are either just getting through a problem, in the midst of a problem, or headed for one.” I’d rather think of it as – we have just had something really good happen to us, are currently enjoying a great moment, or about to have one. And we also wish this for you.

Thanks for being part of the Home Loan Center family –I appreciate your business, friendship and loyalty, and am truly thankful for you.

Good Day Readers!

I’ve not posted content lately as it seems I’m not as fast as other, more proficient internet users in publishing industry news and information. For those of us that didn’t grow up with a cell phone in our hand the habit of social networking seems to be an activity that must be scheduled as a priority as opposed to a daily habit. In this age of information overload I find redundancy common so consequently I try to limit contribution to the problem.

Today I’m compelled to provide what I hope to be helpful information regarding the Reverse Mortgage program. True, this is a loan program and yes, I’m a lender engaged in the business of providing real estate financing. What is not common is the investment of personal drive and satisfaction involved when helping my senior clients. That is not to say clients purchasing and refinancing homes are not a priority as they most certainly are. But beyond the common real estate transaction, I’ve developed a particular passion to help people enjoy life and dismiss unplanned challenges that otherwise could be devastating.

The Reverse Mortgage program has been utilized for many reasons ranging from a simple increase in monthly cash flow allowing more freedom during retirement years to avoiding foreclosure and loss of a home full of family memories. I find many homeowners are hesitant to consider a Reverse Mortgage due to abundant misconceptions that in some cases result in someone not seeking much needed help. So what’s the truth? Let’s look at a few of these questions:

1. “The bank will take my home” or “I will loose my home”

FACT: With a Reverse Mortgage, the borrower retains title to the home throughout the life of the Reverse Mortgage. As long as taxed and insurance is kept current the borrower cannot be forced out of the home.

2. “My home must be debt free to qualify for a Reverse Mortgage”

FACT: If there is currently a lien on the property, the proceeds of the Reverse Mortgage will pay-off the existing lien as the Reverse Mortgage can be the only lien on the property. The homeowner can use the remaining funds as they wish!

3. “The bank sells the home when the Reverse Mortgage becomes due”

FACT: The borrower is in control of the home, not the bank or lender. The Reverse Mortgage is due once the homeowner no longer occupies the home as their primary residence but it’s the decision of the borrower and or their heirs as to how to replay the loan. It’s common for the home to be sold to satisfy a Reverse Mortgage but in many cases the heirs refinance the property to retain the family home.

4. “My children won’t be comfortable with me obtaining a Reverse Mortgage”

FACT: Seniors are encouraged to talk with their children about Reverse Mortgages. Often, the children of many seniors are happy that their parents have a financial solution available to help them live more independently and financially secure.

5. “The borrower could end up owing more than the house is worth”

FACT: Two of the great built-in safeguards of the Reverse Mortgage are that they are structured so that the borrower cans NEVER OWE MORE THAN FAIR MARKET VALUE OF THE HOME at time of repayment. In addition, the Home Equity Conversion Mortgage (HECM) product is insured by the Federal Housing Administration (FHA), an arm of the U.S. Department of Housing and Urban Development (HUD).

6. “Reverse Mortgage proceeds will impact Social Security and Medicare benefits”

FACT: A Reverse Mortgage will generally not affect regular Social Security payments or Medicare benefits. It is always recommended that a borrower speak with their financial advisor and appropriate government agencies.

7. “There are restrictions on how the money is used and taxes will have to be paid on the funds I receive”

FACT: There are NO restrictions. The proceeds from a Reverse Mortgage can be used for absolutely any purpose and since it’s already your money, it’s tax-free! My senior clients have used Reverse Mortgages to travel, pay-off debt, help their kids, live more comfortably or save the family home from foreclosure when unable to make the current mortgage payment.

8. “Reverse Mortgages are only for seniors in need, or for the ‘house rich, cash poor’”

FACT: Reverse Mortgages are an excellent financial planning tool that has been used by homeowners from many walks of life to enhance their retirement years. In fact, with the new 2009 lending limit of $650,000.00, many seniors are benefiting from increased cash benefit from a Reverse Mortgage.

While these are just a few of the FAQ’s received, I believe this knowledge will be very helpful to seniors and families considering a Reverse Mortgage. I’m happy to speak with anyone interested in additional details anytime.

As we approach the Thanksgiving holiday I have a final thought before I close regarding “Black Friday” shopping. Last year I participated in this sacred annual ritual for the first time in my life. As I entered the doors of a large national retailer I was saddened and appalled at the behavior and actions of other shoppers. I was immediately reminded of the first time I navigated my way through an airport in a third world country and how shocked I was at the experience. Keep in mind this was the same day a man shopping at the same retailer in a different state lost his life, a story that was broadcast on the national news. We have much to be thankful for, not the least of which is a civil country to call our home. For those participating in the mad rush, please remember to be kind and respectful to your fellow shoppers. By the way, the product I wanted to purchase was sold-out by the time I pushed my way to the back of the store. When I returned home my beautiful wife supplied me with a cup of coffee and kind words of support. After calming down I decided to take my chances online. In the end I found a better deal on the same product with free shipping…………all from the comfort of my recliner!

Best wishes to you and your family for a happy Thanksgiving and a very merry Christmas!

HAPPY MEMORIAL DAY WEEKEND!

Another great day in the Walla Walla Valley. We’ve enjoyed a fabulous year for the Balloon Stampede and Mothers Day. Now as we consider a long Memorial Day weekend, let’s be sure to remember those who sacrificed so that we may live free in this great country.
While the economy struggles, we continue to enjoy the lowest mortgage rates in many years. With attractive Real Estate prices and the $8,000 tax credit available to first time homebuyers, this will be an exciting year helping clients achieve the dream of homeownership. When combined with the advantages of the corporate real estate benefit program offered by local employers at no cost to their staff (available through Home Loan Center), it’s sure to be a very busy summer!
Best wishes to all for a happy and safe holiday weekend!

BALLOON WEEKEND IN WALLA WALLA!

Once again it’s time for the fantastic Walla Walla Balloon Stampede. We have 37 balloons in town this year and look forward to an awesome weekend. While the winds were a bit too brisk for for most to chance a Friday morning launch, we had a very few brave pilots take to the skies. There will be more opportunities to see the balloons in action Saturday at the 6:30am launch, inflated and tethered from Noon – 4pm @ Garrison School (next to the fairgrounds)and again at the spectacular Night Glow (fairgrounds grandstands) beginning @ 7pm. Balloons are scheduled to launch again Sunday morning. In addition to the balloons, there’s lots to see and do with many vendors displaying their products, a classic car show, a variety of bands, activities for the kids and morning pancake breakfast. The weather forecast looks great and there’s no charge for admission! Don’t miss a great opportunity to visit the Balloon Stampede, sample our premium local wines and shop the unique variety of local businesses. Also, don’t forget mortgage rates are at the lowest levels seen in over 40 years! The time to refinance your current mortgage is NOW. If you’re considering the purchase of your first home you’ll benefit not only from the low interest rates but the $8,000 tax credit as well. Buy your new home, amend your 2008 taxes and get your $8,000 this year courtesy of Uncle Sam! See you at the Stampede!

2009 Outlook . . .Mortgage Market Guide is pleased to present our annual forecast

By Barry Habib

Last year’s forecast had anticipated some very odd happenings…but nothing to the extent of how the actual story unfolded, in what became a year of making history.

How did we do on our forecast last year?

Federal Reserve Chairman Ben Bernanke was confident that we were not heading into a recession and a down market . . . and we correctly disagreed.
We saw Stocks heading lower . . . and they did, actually to a much larger extent than we had expected. But our one Stock selection for last year did quite well, more than doubling in a short period of time.
We saw 2008 as being a year of high volatility . . . and that turned out to be an understatement.
We said the Fed would cut . . . but we were wrong as to the extent of those cuts, brought on by the financial crisis, also something we did not foresee.
We saw $4/gallon gasoline over the summer, and while many disagreed, our target price was correct.
We did well with our forecast for the Dollar and Gold prices, as well as how we anticipated the housing market to fare.
Most importantly, and for more than 11 months during 2008, our rate forecast was right on target, with the last few weeks seeing mortgage rates decline further than we had predicted at this time last year.
What next? As we enter 2009, here’s what our crystal ball is showing us.

The economy will have a tough go once again during the coming year. But we do see things as being better than during 2008, with more optimism in the air by this time next year.

The Fed and the Treasury have and will continue to add lots of stimulus to our economy. It will just take some time for the “medicine” to work its way through the system. After hogging the spotlight with many different moves, we expect the Fed to be on hold with their interest rate policy throughout the majority of 2009. After all, there’s no room to cut further, and we don’t see a hike until economic conditions show signs of improvement. When a hike comes, we may all take it as a welcome sign that things are getting better.

The job market will get worse before it gets better, and don’t be surprised to see the unemployment rate rise to 8% from its present 6.7% level before things start to improve.

We can safely predict, without much disagreement from anybody, that volatility will continue for Stocks, but we do see hints that there will be a significant first quarter rally. By the end of 2009, we forecast that Stock prices will see some handsome gains. This play on financials has a generous dividend yield, and stands to improve greatly should financials start to recover…and we think they will.

As I write this to you on 12/24, our stock picks for the year include UYG (Ultra Financials ProShares), which was trading around $5. This play on financials has a generous dividend yield, and stands to improve greatly should financials start to recover…and we think they will. We also liked VZ (Verizon), which currently is trading around $32, as strength in cell phone usage and an exploding fiber optics business see them standing to gain. Additionally, there is a juicy 6% dividend yield. One more we like is DIG (ProShares Ultra Oil and Gas), which was priced close to $25. Keep reading on our oil forecast to understand why we like this play.

As of mid-December, with oil around $36/barrel, we saw a great opportunity for the long term. Oil prices will rise over time, and have already started to climb, and patience will be greatly rewarded. The negative side effect from lower oil prices is that it has greatly diminished research and exploration into alternative energy sources, as well as investigating more costly extraction of fuel. For example, the oil-rich yet difficult to mine tar sands in Canada only make financial sense unless oil prices are over $70/barrel. And any other resources that are “boxed in” or require additional transportation costs may come offline at current oil prices. And once they are offline, there is a significant ramp up time to get them back. The irony in lower oil prices is that they may lead to much higher prices down the road.

Look for the Dollar to weaken a bit, but eventually strengthen as the US stabilizes while Europe declines a bit further.

On housing, we see 2009 as a period of price stabilization for most markets. One good gauge that home prices are stabilizing in your area is to figure a monthly payment with 20% down and compare that to rents for the same property. If it would actually be cheaper to purchase the home than to rent it – that’s a good sign.

Home prices in some markets may still decline some during 2009, but those who make savvy purchases below market value should fare quite well, especially longer term. There’s a lot of inventory on the market, which is viewed negatively, and needs to be sopped up before the housing market really turns. But…the inventory in the housing market does make this a fantastic time to be a buyer. Homebuyers will have a strong negotiating stance from the get-go, and are likely to make favorable deals, maybe even a once-in-lifetime deal. Those who buy a home and live in it for the long term will are likely to be rewarded handsomely. Let’s face, people need homes. They are not going to start living in tents just because the economy is bad. We predict that consumers will start buying again in the coming year, particularly with attractive home loan rates and many homes to choose from.

Mortgage Rate Forecast …How low can they go?

Early 2009 could very well mark the lowest rates that we will see for the rest of our lives. Think about that. More importantly, your customers should be thinking about that too. We expect interest rates to stay in a range of 4.5 – 5.5%, with the potential to see rates moving toward the higher part of the range later in the year.

The forecast for the beginning of the year is important of course, but count on us at Mortgage Market Guide to keep informing and advising you throughout the coming year. With so many of your competitors having dropped away, opportunities abound for those who are willing to stay positive and work hard. The question is not who is going to let you be successful . . . it’s who is going to stop you. During these volatile and historic times, we’re proud to be with you on this journey, and appreciate each of you being part of our Mortgage Market Guide family.

2008 TAX CHANGES

1 Mileage Increase
The standard mileage credit IRS gave in 2007 was 50.5 cents for business and 19 cents for medical or qualified moving trips. However, due to sudden gas price increases – and not-so-gentle congressional prompting – these expenses have gone up effective July 1 of this year. That is the tricky part. Thus, the reimbursement stays as is from January 1- June 30. However, from July 1 on, you can claim 58.5 cents for each business mile driven and 27 cents for medical and moving purposes. That could add up to some big change for those who drive a lot.

2 Bonus SUV Depreciation
If you buy a qualified SUV – new or used – you can elect to write off up to $25,000 of the business use of that vehicle. A qualified SUV is one that has a truck chassis, carries passengers and has a gross vehicle loaded weight of over 6,000 pounds.

Starting in 2008, if you buy a new qualified SUV, you not only get the above noted standard depreciation. You can also claim 50% bonus depreciation.

What this means to you is that if you buy a qualified SUV, you can write off as much as 80% of the business use of that vehicle in the first year!

 

Note that this bonus depreciation only applies to qualified SUVs placed in service this year! In addition, it doesn’t matter when you buy the car. The depreciation and $25,000 election applies to the business use of the vehicle.

Example: Patrick buys a Cadillac Escalade in July for $60,000, using it 90% for business. Thus, the business use of his SUV would be 90% of $60,000 = $54,000. This year, he can deduct approximately $43,200 of the cost. If you want to take a sizeable bite out of your taxes, this will do it!

3 Increased Expense Allowance
In previous years, you were able to deduct up to $125,000 of equipment that you buy for your business by making an election on your tax return. This number has been doubled for equipment purchases in 2008 to $250,000.

Requirements: To make this election, you need to meet certain rules. First, you must use the equipment more than 50% for business. Second, the election can’t create a loss, although any excess can be carried forward to future years. Finally, the equipment must be new to you. It doesn’t have to be new. It just has to be new to you!

These are general tips based on IRS advisories. Check with your accountant about how these changes could impact your tax bill._

Savvy Borrowers Are Straying from 30-Year Fixed Rate Mortgages

Today’s affluent homeowners are moving further away from traditional 30- and 15-year fixed rate mortgages and instead are choosing less traditional products, like interest-only mortgages to enhance their financial situations. This trend has started catching on among educated homeowners, who are following suit in an effort to better position their financial assets. “The percentage of financially savvy clients who choose 30-year fixed rate mortgages is very small,” states Doug Roquet, a Certified Mortgage Planner with Home Loan Center of Washington & Oregon, division of Netmore America, Inc, a mortgage banking company based in Walla Walla, WA. “Most of my affluent clients prefer to leverage their debts with loan products that provide higher tax savings and more cash flow than a traditional 30-year fixed rate loan. But what we’re finding is that this trend isn’t just limited to high net-worth individuals. I’m seeing more and more everyday homeowners interested in the long-term financial benefits of leveraging alternatives to the 30-year fixed rate loan, like interest-only loans and adjustable rate mortgages.” “A big part of being a responsible mortgage professional is understanding the risks and benefits of each product, and empowering the client with the education to make a sound decision,” . “Obviously, putting a borrower into a 30-year fixed rate, when they know that they’re moving in less than five years, especially when that 30-year product is more costly, is not acting in the client’s best interest.” “If a borrower is capable of investing in an interest-bearing, compounding interest side account at a favorable rate, the savings realized by a less traditional loan like an adjustable rate or interest-only mortgage can be an excellent option,” states Roquet. There is no universal optimal choice of mortgage product and potential borrowers are advised to contact a knowledgeable and reputable mortgage professional who can evaluate their current financial situation, consider their goals and capabilities, and take these factors into account when advising about potential mortgage options. While many borrowers are attracted to the benefits of adjustable rate, hybrid and interest-only mortgages, which include easier qualification guidelines, lower monthly payments and higher flexibility, others are drawn to the consistent predictability of a traditional 30-year fixed rate. “I take numerous factors into account when evaluating a borrower’s fit for a specific type of loan,” says Roquet. “There are far more factors than monthly payment and interest rates. I always consider the borrower’s spending habits, capacity to save, risk tolerance and future goals. A good loan choice is the one that works best for the specific borrower. Suitability is absolutely critical for the deal to make sense.”

Looking ahead to 2009

As I look out my office window to watch a snow accumulation not experienced in SE Washington for many years, I ponder change. Changes we’ve seen in the last year and changes we’ll experience in the next 12 months. Some of these changes we can control and of course, some we can’t. I commit to share information that will benefit the reader as we prepare to effect positive change! As many of us share the same strategies and products, many ideas may be similar to other items posted on the web. I simply feel it is professionally and ethically imperative that we continue to be a student of our industries, striving to provide our clients with information and services benefiting them in the highest degree.

Today I feel we need to be certain every effort is made to inform our clients of 2 very important facts:

1. If you’re a homeowner and haven’t yet considered refinancing your current mortgage, now is the time!

2. It is not impossible to obtain a mortgage as many people are lead to believe. Credits worthy borrowers enjoy many options for the purchase or refinance of a property.

I look forward to providing future posts containing informative and useful content. Please feel free to contact me anytime with questions or to discuss the content of this post.

Best wishes for a very happy, successful and fulfilling 2009!