As expected the Federal Reserve lowered interest rates yesterday, BUT investors were less than impressed with the quarter-point drop. Many in the investment community wanted more agressive action to correct the housing downturn and were asking for a half-point reduction.
This article is from MSN money:
WASHINGTON (AP) - The Federal Reserve dropped its most important interest rate to a nearly two-year low on Tuesday and left the door open to additional cuts to prevent a housing and credit meltdown from pushing the economy into a recession.
Fed Chairman Ben Bernanke and all but one of his colleagues agreed to trim the federal funds rate by one-quarter percentage point to 4.25 percent.
The rate reduction, the third this year, was needed to energize national economic growth, Fed officials said. The deepening housing slump is affecting the behavior of consumers and businesses alike, the Fed said.
"Economic growth is slowing, reflecting the intensification of the housing correction and some softening in business and consumer spending. Moreover, strains in financial markets have increased in recent weeks," the Fed said in a statement explaining its decision to cut rates again. The three rate cuts ordered thus far "should help promote moderate growth over time," the Fed added.
On Wall Street, stocks tumbled, reflecting disappointment among some investors who were hoping for a larger rate cut. The Dow Jones industrial plunged more than 200 points.
The funds rate affects many other interest rates charged to individuals and businesses and is the Fed's most potent tool for influencing economic activity.
In response, commercial banks, including Wachovia and Wells Fargo, lowered their prime lending rate by a corresponding amount, to 7.25 percent. The prime rate applies to certain credit cards, home equity lines of credit and other loans.
The fact that the Fed's key rate was lowered again marked an about-face for the central bank. At its previous meeting in October, Fed officials hinted that their two rate cuts probably would be sufficient to help the economy survive the housing and credit stresses. Since then, however, financial conditions have deteriorated, prompting Bernanke to signal before Tuesday's meeting that another rate cut may be needed after all as an insurance policy against undue economic weakness.
As another bolstering move, the Fed on Tuesday also lowered its lending rates to banks by one-quarter percentage point. That was the fourth cut to the discount rate since mid-August.
"Recent developments, including the deterioration in financial market conditions, have increased the uncertainty surrounding the outlook for economic growth and inflation," the Fed said in its statement.
Banks, financial companies and other investors who made loans to people with spotty credit or put money into securities backed by those subprime mortgages have lost billions of dollars. Investors in the U.S. and abroad have grown more wary of buying new debt, thereby aggravating the credit crunch.
Harder-to-get credit has thwarted would-be home buyers, intensifying the housing collapse. Foreclosures have soared to record highs. The number of unsold homes have piled up. Problems are expected to persist well into next year.
The 9-1 decision for a quarter-point reduction to the funds rate was opposed by Eric Rosengren, president of the Federal Reserve Bank of Boston. He preferred a bolder, half-percentage point cut.
"Fed's language clearly reflects a heightened degree of concern about the economic outlook," said Carl Tannenbaum, chief economist at LaSalle Bank. "They left open the possibility of additional rate reductions," he added. If the economy were to take a turn for the worse, another rate cut could come before the Fed's next scheduled meeting on Jan. 29-30, Tannbenbaum said.
The situation poses the biggest challenge yet to Bernanke, who took over the Fed in February 2006. Some analysts have questioned whether he waited too long to cut the Fed's key rate and whether he has acted aggressively enough to the nation's economic woes.
In September, the central bank dropped the funds rate for the first time in four years. Then it was a half-point drop; on Oct. 31 came a quarter-point cut.
The rationale behind the lower rates is that they will induce consumers and businesses to boost spending, invigorating economic activity. With Tuesday's reductions, both the funds rate and the prime rate are now at their lowest levels in nearly two years.
From July through September, the economy logged its best growth in four years. But it is expected to slow to a pace of just 1.5 percent or less over the final three months of the year as the housing collapse and credit crunch chill consumers, sapping overall economic growth. The odds of a recession have grown.
With growth cooling, the unemployment rate, now at a relatively low 4.7 percent, is expected to rise. Analysts expect the jobless rate to climb to 5 percent by early next year.
High oil prices could complicate the Fed's job of trying to keep the economy expanding and inflation low.
Oil prices, which had neared $100 a barrel, have moderated. But they are still high. High energy prices are a double-edged sword. They can slow economic activity and spread inflation if they cause the prices of lots of other goods and services to rise.
"Elevated energy and commodity prices, among other factors, may put upward pressure on inflation," the Fed said. "Inflation risks remain," the Fed said, adding that it "will continue to monitor inflation developments carefully." Some economists believed the Fed's decision to go with a moderate quarter-point cut was a nod to those inflation concerns
Wednesday, December 12, 2007
Monday, December 3, 2007
Deal near on mortgage defaults
By MARTIN CRUTSINGER, AP Economics Writer
Source: Yahoo News
Treasury Secretary Henry Paulson said Monday he is confident there will soon be an agreement to help thousands of homeowners avoid mortgage defaults by temporarily freezing their interest rates.
Paulson told a national housing conference that this effort involved a "pragmatic response" to current realities as the economy goes through the worst housing slump in more than two decades. The number of homeowners struggling to meet higher payments because their initial introductory rates are resetting is currently soaring.
Paulson and other top Treasury officials have been holding talks with major players in the mortgage industry over the past several weeks to hammer out an agreement that would freeze the lower introductory rates to keep them from resetting to higher levels for a period of years.
"We are working aggressively and quickly, utilizing available tools and creating new ones, to help financially responsible but struggling homeowners," Paulson said in a speech to a national housing conference sponsored by the Office of Thrift Supervision.
One of the outstanding issues is how long the freeze will last. Some government regulators are pushing for five to seven years but investors, who will see lower payments on the loans, are arguing for a shorter period of one to two years.
An estimated 2 million subprime mortgages, loans offered to borrowers with spotty credit histories, are scheduled to reset to much higher levels by the end of 2008. Those resets will push the payment on a typical mortgage up by $350 per month, taking it from $1,200 currently to $1,550.
Paulson said he believed the disagreements can be resolved without delay. Some expect the administration to unveil the completed deal later this week, but Paulson was not as specific in his remarks, saying only, "I am confident they will finalize these standards soon."
Paulson said he believed the mortgage industry would move to implement the new program quickly and would also adopt benchmarks to measure progress going forward.
"As a result, what was a fragmented, cumbersome process can be a coordinated effort which more quickly helps able homeowners," Paulson said.
The new program is being aimed at homeowners who have steady incomes and relatively clean repayment histories who could afford the lower introductory mortgage rates but cannot afford the higher adjusted rate.
The rate freeze is part of a three-pronged program the administration is pushing that also includes stepping up efforts to contact at-risk homeowners and encouraging creation of new programs that would embrace more affordable loans to homeowners who would like to refinance to mortgages with lower payments.
Paulson said that the administration is putting forward a new proposal to allow state and local governments more authority to temporarily broaden their tax-exempt bond programs to include mortgage refinancing.
He also called on Congress to pass a number of pending bills that would address the housing crisis in such ways as expanding the availability of Federal Housing Administration insured loans and boosting government oversight of mortgage giants Fannie Mae and Freddie Mac.
The administration has come under criticism from Democrats who have complained that the proposals put forward so far have been too modest in light of the crisis facing the housing industry and the threat that the housing slump could trigger a full-blown recession.
Source: Yahoo News
Treasury Secretary Henry Paulson said Monday he is confident there will soon be an agreement to help thousands of homeowners avoid mortgage defaults by temporarily freezing their interest rates.
Paulson told a national housing conference that this effort involved a "pragmatic response" to current realities as the economy goes through the worst housing slump in more than two decades. The number of homeowners struggling to meet higher payments because their initial introductory rates are resetting is currently soaring.
Paulson and other top Treasury officials have been holding talks with major players in the mortgage industry over the past several weeks to hammer out an agreement that would freeze the lower introductory rates to keep them from resetting to higher levels for a period of years.
"We are working aggressively and quickly, utilizing available tools and creating new ones, to help financially responsible but struggling homeowners," Paulson said in a speech to a national housing conference sponsored by the Office of Thrift Supervision.
One of the outstanding issues is how long the freeze will last. Some government regulators are pushing for five to seven years but investors, who will see lower payments on the loans, are arguing for a shorter period of one to two years.
An estimated 2 million subprime mortgages, loans offered to borrowers with spotty credit histories, are scheduled to reset to much higher levels by the end of 2008. Those resets will push the payment on a typical mortgage up by $350 per month, taking it from $1,200 currently to $1,550.
Paulson said he believed the disagreements can be resolved without delay. Some expect the administration to unveil the completed deal later this week, but Paulson was not as specific in his remarks, saying only, "I am confident they will finalize these standards soon."
Paulson said he believed the mortgage industry would move to implement the new program quickly and would also adopt benchmarks to measure progress going forward.
"As a result, what was a fragmented, cumbersome process can be a coordinated effort which more quickly helps able homeowners," Paulson said.
The new program is being aimed at homeowners who have steady incomes and relatively clean repayment histories who could afford the lower introductory mortgage rates but cannot afford the higher adjusted rate.
The rate freeze is part of a three-pronged program the administration is pushing that also includes stepping up efforts to contact at-risk homeowners and encouraging creation of new programs that would embrace more affordable loans to homeowners who would like to refinance to mortgages with lower payments.
Paulson said that the administration is putting forward a new proposal to allow state and local governments more authority to temporarily broaden their tax-exempt bond programs to include mortgage refinancing.
He also called on Congress to pass a number of pending bills that would address the housing crisis in such ways as expanding the availability of Federal Housing Administration insured loans and boosting government oversight of mortgage giants Fannie Mae and Freddie Mac.
The administration has come under criticism from Democrats who have complained that the proposals put forward so far have been too modest in light of the crisis facing the housing industry and the threat that the housing slump could trigger a full-blown recession.
Tuesday, November 20, 2007
Carbon Monoxide Safety Tips!
Carbon Monoxide
Approximately 250 people in the United States died last year from the "Silent Killer" -- carbon monoxide (CO). This deadly gas is hard to detect because it is odorless, colorless and tasteless. UL recommends that consumers follow these steps to help prevent carbon monoxide poisoning:
1. Have a qualified technician inspect fuel-burning appliances at least once each year.
2. Fuel-burning appliances such as furnaces, hot water heaters and stoves require yearly maintenance. Over time, components can become damaged or deteriorate. A qualified technician can identify and repair problems with your fuel-burning appliances.
3. Be alert to the danger signs that signal a CO problem: streaks of carbon or soot around the service door of your fuel-burning appliances; the absence of a draft in your chimney; excessive rusting on flue pipes or appliance jackets; moisture collecting on the windows and walls of furnace rooms; fallen soot from the fireplace; small amounts of water leaking from the base of the chimney, vent or flue pipe; damaged or discolored bricks at the top of your chimney and rust on the portion of the vent pipe visible from outside your home.
4. Be aware that CO poisoning may be the cause of flu-like symptoms such as headaches, tightness of chest, dizziness, fatigue, confusion and breathing difficulties. Because CO poisoning often causes a victim's blood pressure to rise, the victim's skin may take on a pink or red cast.
5. Install a UL Listed CO detector outside sleeping areas. A UL Listed CO detector will sound an alarm before dangerous levels of CO accumulate. CO indicator cards and other devices are also intended to detect elevated levels of CO, but most are not equipped with an audible alarm, and cannot wake you at night, when most CO poisonings occur.
6. Read the manufacturer's instructions carefully before installing a CO detector. Do not place the detector within five feet of household chemicals. If your detector is wired directly into your home's electrical system, you should test it monthly. If your unit operates off of a battery, test the detector weekly and replace the battery at least once a year.
7. Avoid placing your detector directly on top of or directly across from fuel-burning appliances. These appliances will emit some CO when initially turned-on. Never use charcoal grills inside a home, tent, camper or unventilated garage. Don't leave vehicles running in an enclosed garage, even to "warm up" your car on a cold morning.
8. Know how to respond to a CO detector alarm. If your alarm sounds, immediately open windows and doors for ventilation. If anyone in the home is experiencing symptoms of CO poisoning -- headache, dizziness or other flu-like symptoms -- immediately evacuate the house and call the fire department. If no one is experiencing these symptoms, continue to ventilate, turn off fuel-burning appliances and call a qualified technician to inspect your heating system and appliances as soon as possible. Because you have provided ventilation, the CO buildup may have dissipated by the time help responds and your problem may appear to be temporarily solved. Do not operate any fuel-burning appliances until you have clearly identified the source of the problem. A CO detector alarm indicates elevated levels of CO in the home. Never ignore the alarm.
With Winter already here is is very important to be aware of Carbon Monoxide. I hope these tips help!
Approximately 250 people in the United States died last year from the "Silent Killer" -- carbon monoxide (CO). This deadly gas is hard to detect because it is odorless, colorless and tasteless. UL recommends that consumers follow these steps to help prevent carbon monoxide poisoning:
1. Have a qualified technician inspect fuel-burning appliances at least once each year.
2. Fuel-burning appliances such as furnaces, hot water heaters and stoves require yearly maintenance. Over time, components can become damaged or deteriorate. A qualified technician can identify and repair problems with your fuel-burning appliances.
3. Be alert to the danger signs that signal a CO problem: streaks of carbon or soot around the service door of your fuel-burning appliances; the absence of a draft in your chimney; excessive rusting on flue pipes or appliance jackets; moisture collecting on the windows and walls of furnace rooms; fallen soot from the fireplace; small amounts of water leaking from the base of the chimney, vent or flue pipe; damaged or discolored bricks at the top of your chimney and rust on the portion of the vent pipe visible from outside your home.
4. Be aware that CO poisoning may be the cause of flu-like symptoms such as headaches, tightness of chest, dizziness, fatigue, confusion and breathing difficulties. Because CO poisoning often causes a victim's blood pressure to rise, the victim's skin may take on a pink or red cast.
5. Install a UL Listed CO detector outside sleeping areas. A UL Listed CO detector will sound an alarm before dangerous levels of CO accumulate. CO indicator cards and other devices are also intended to detect elevated levels of CO, but most are not equipped with an audible alarm, and cannot wake you at night, when most CO poisonings occur.
6. Read the manufacturer's instructions carefully before installing a CO detector. Do not place the detector within five feet of household chemicals. If your detector is wired directly into your home's electrical system, you should test it monthly. If your unit operates off of a battery, test the detector weekly and replace the battery at least once a year.
7. Avoid placing your detector directly on top of or directly across from fuel-burning appliances. These appliances will emit some CO when initially turned-on. Never use charcoal grills inside a home, tent, camper or unventilated garage. Don't leave vehicles running in an enclosed garage, even to "warm up" your car on a cold morning.
8. Know how to respond to a CO detector alarm. If your alarm sounds, immediately open windows and doors for ventilation. If anyone in the home is experiencing symptoms of CO poisoning -- headache, dizziness or other flu-like symptoms -- immediately evacuate the house and call the fire department. If no one is experiencing these symptoms, continue to ventilate, turn off fuel-burning appliances and call a qualified technician to inspect your heating system and appliances as soon as possible. Because you have provided ventilation, the CO buildup may have dissipated by the time help responds and your problem may appear to be temporarily solved. Do not operate any fuel-burning appliances until you have clearly identified the source of the problem. A CO detector alarm indicates elevated levels of CO in the home. Never ignore the alarm.
With Winter already here is is very important to be aware of Carbon Monoxide. I hope these tips help!
Friday, November 9, 2007
Bill would ease tax debt for many in foreclosure: Senate could vote on Stabenow plan during December
This story was featured in the Lansing State Journal today. This could help a ton of people in our area. Will it pass? What do you think?
Mara Lee
State Journal correspondent
Sue McClung lost her $40,000-a-year secretarial job in May 2006. Then, as her job search dragged on for more than a year, she lost her $130,000 home in Lansing.
For seven months, she stayed current on the $1,000 monthly mortgage, thanks to unemployment benefits and a pension from a previous state job. But when benefits ran out, a $7.50-an-hour retail job wasn't enough to cover the payments and support herself and a daughter in college. "I just thought, 'I can't do this,' " she said. McClung, 54, now has a new job, and is renting a duplex in Mason.
But her nightmare isn't over.
Although her house, which is owned by the bank, now sits empty, it still could cost her.
If it sells for less than what she owed, McClung will owe taxes on the difference between her mortgage balance and the price the bank gets. Debt forgiveness is considered a loss to the bank and taxable income for the former owner.
A bill from U.S. Sen. Debbie Stabenow, D-Lansing, would change that. Under Stabenow's bill, people who lose their homes to foreclosure would be absolved from future tax liability on the sale of the home. Similar legislation passed the House last month, but it has yet to be considered in the Senate. Stabenow called this week for a vote on the bill, saying the tax change is urgently needed.
Many factors
Analysts at the Congressional Budget Office project 400,000 U.S. homeowners have been or will be in McClung's position this year and in the next two years because of a downturn in the housing market. Just this year, about 100,000 foreclosures have been initiated in Michigan, according to Realty-trac, a foreclosure research firm. Stabenow said owning a home is the American dream. "Too many people now are seeing that (dream) slip away," she said.
Around the country, sharply rising adjustable-rate mortgages among people with poor credit and small-scale real-estate investors have driven the rise in foreclosures. But in Michigan, Ohio and Indiana, subprime lending is only part of the problem - many borrowers also have trouble meeting their obligations because of unemployment and replacement jobs that pay less.
That's what happened to McClung. She found a new job as a receptionist and executive assistant in September, although it pays $10,000 less than her former job.
"I was picked out of 400 people," she said. "I'm very blessed."
But she worries about what will happen if the bill doesn't pass. How can she pay taxes on tens of thousands of dollars she never even saw?
Stabenow agrees.
"That makes absolutely no sense," she said.
Many other priorities
A vote on Stabenow's bill could come next month, but her proposal has to compete with many other must-do priorities before Christmas - including passing the budget for next year.
McClung, meanwhile, says owning a house as a single person is too hard, and she'll never do it again.
"I'm still recovering," she said.
Mara Lee
State Journal correspondent
Sue McClung lost her $40,000-a-year secretarial job in May 2006. Then, as her job search dragged on for more than a year, she lost her $130,000 home in Lansing.
For seven months, she stayed current on the $1,000 monthly mortgage, thanks to unemployment benefits and a pension from a previous state job. But when benefits ran out, a $7.50-an-hour retail job wasn't enough to cover the payments and support herself and a daughter in college. "I just thought, 'I can't do this,' " she said. McClung, 54, now has a new job, and is renting a duplex in Mason.
But her nightmare isn't over.
Although her house, which is owned by the bank, now sits empty, it still could cost her.
If it sells for less than what she owed, McClung will owe taxes on the difference between her mortgage balance and the price the bank gets. Debt forgiveness is considered a loss to the bank and taxable income for the former owner.
A bill from U.S. Sen. Debbie Stabenow, D-Lansing, would change that. Under Stabenow's bill, people who lose their homes to foreclosure would be absolved from future tax liability on the sale of the home. Similar legislation passed the House last month, but it has yet to be considered in the Senate. Stabenow called this week for a vote on the bill, saying the tax change is urgently needed.
Many factors
Analysts at the Congressional Budget Office project 400,000 U.S. homeowners have been or will be in McClung's position this year and in the next two years because of a downturn in the housing market. Just this year, about 100,000 foreclosures have been initiated in Michigan, according to Realty-trac, a foreclosure research firm. Stabenow said owning a home is the American dream. "Too many people now are seeing that (dream) slip away," she said.
Around the country, sharply rising adjustable-rate mortgages among people with poor credit and small-scale real-estate investors have driven the rise in foreclosures. But in Michigan, Ohio and Indiana, subprime lending is only part of the problem - many borrowers also have trouble meeting their obligations because of unemployment and replacement jobs that pay less.
That's what happened to McClung. She found a new job as a receptionist and executive assistant in September, although it pays $10,000 less than her former job.
"I was picked out of 400 people," she said. "I'm very blessed."
But she worries about what will happen if the bill doesn't pass. How can she pay taxes on tens of thousands of dollars she never even saw?
Stabenow agrees.
"That makes absolutely no sense," she said.
Many other priorities
A vote on Stabenow's bill could come next month, but her proposal has to compete with many other must-do priorities before Christmas - including passing the budget for next year.
McClung, meanwhile, says owning a house as a single person is too hard, and she'll never do it again.
"I'm still recovering," she said.
Thursday, November 1, 2007
Federal Reserve Lowers Interest Rate Again, not everyone agrees it is best..
This story was reported in the Lansing State Journal today:
Fed's move might help amid foreclosure crisis. Interest rate cut to 4.5 percent
Staff and wire reports
The Federal Reserve's latest interest rate cut - its second reduction in six weeks - could eventually help the housing market and mid-Michigan consumers.
On Wednesday, the Fed cut the key federal funds rate one-quarter of a percentage point to 4.5 percent to help the economy weather a deepening housing slump.
Fed Chairman Ben Bernanke and all but one of his colleagues agreed to lower the key rate. Banks started to cut their prime lending rates for their best customers by a corresponding amount - to 7.5 percent in this case.
But Wednesday's rate cut won't automatically mean lower rates on home equity loans and credit cards, said Michigan State University economics professor Charles Ballard.
What the cut will do is make it easier for lending institutions to make loans to consumers by reducing the short-term interest loan rate charged to banks.
Banks, in turn, may lower interest rates and mortgage rates.
Michigan already has one of the worst foreclosure rates in the nation, according to RealtyTrac, an online marketplace of foreclosure properties.
According to RealtyTrac's quarterly report to be released today, Michigan had the fourth-highest number of foreclosure filings in the third quarter, with 1 in 104 homes in the state the subject of a default notice, auction sale notice or bank repossession. That is up 65.7 percent from the second quarter and 110.7 percent from a year earlier.
The mid-Michigan area fared slightly better than the state, with foreclosure filings made at the rate of one for every 110 homes in Ingham County, one for every 188 homes in Eaton County and one for every 209 homes in Clinton County.
Irvine, Calif.-based RealtyTrac's filings data includes default notices, auction sale notices and bank repossessions.
The Fed rate cut won't necessarily help people with adjustable rate mortgages. But it may make it easier for people to refinance with standard mortgages.
"Hopefully, this will help more people to quality to buy a house or buy more of a house," said Denny Moore, associate broker for Coldwell Banker Hubbell Real Estate Co. in Delta Township.
Lansing State Journal business writer Barbara Wieland and Associated Press writer Jeannine Aversa contributed to this story.
What do you think? There are critics that say this is just window dressing and that it furthur hurts the American dollar worldwide because no other countries want to finance our debt anymore. Will it help or just make people temporarily see some hope? Let us know your thoughts by clicking on the "Comments" link below.
Fed's move might help amid foreclosure crisis. Interest rate cut to 4.5 percent
Staff and wire reports
The Federal Reserve's latest interest rate cut - its second reduction in six weeks - could eventually help the housing market and mid-Michigan consumers.
On Wednesday, the Fed cut the key federal funds rate one-quarter of a percentage point to 4.5 percent to help the economy weather a deepening housing slump.
Fed Chairman Ben Bernanke and all but one of his colleagues agreed to lower the key rate. Banks started to cut their prime lending rates for their best customers by a corresponding amount - to 7.5 percent in this case.
But Wednesday's rate cut won't automatically mean lower rates on home equity loans and credit cards, said Michigan State University economics professor Charles Ballard.
What the cut will do is make it easier for lending institutions to make loans to consumers by reducing the short-term interest loan rate charged to banks.
Banks, in turn, may lower interest rates and mortgage rates.
Michigan already has one of the worst foreclosure rates in the nation, according to RealtyTrac, an online marketplace of foreclosure properties.
According to RealtyTrac's quarterly report to be released today, Michigan had the fourth-highest number of foreclosure filings in the third quarter, with 1 in 104 homes in the state the subject of a default notice, auction sale notice or bank repossession. That is up 65.7 percent from the second quarter and 110.7 percent from a year earlier.
The mid-Michigan area fared slightly better than the state, with foreclosure filings made at the rate of one for every 110 homes in Ingham County, one for every 188 homes in Eaton County and one for every 209 homes in Clinton County.
Irvine, Calif.-based RealtyTrac's filings data includes default notices, auction sale notices and bank repossessions.
The Fed rate cut won't necessarily help people with adjustable rate mortgages. But it may make it easier for people to refinance with standard mortgages.
"Hopefully, this will help more people to quality to buy a house or buy more of a house," said Denny Moore, associate broker for Coldwell Banker Hubbell Real Estate Co. in Delta Township.
Lansing State Journal business writer Barbara Wieland and Associated Press writer Jeannine Aversa contributed to this story.
What do you think? There are critics that say this is just window dressing and that it furthur hurts the American dollar worldwide because no other countries want to finance our debt anymore. Will it help or just make people temporarily see some hope? Let us know your thoughts by clicking on the "Comments" link below.
Sorry for the delay!
We had a few technical problems with the posting of our stories, but all is fixed. Sorry for the break!
Monday, October 1, 2007
Budget passed. Griffin & Simpson vote against tax increase.
The following was reported in the Detroit Free Press this morning. What do you think? Right or Wrong? Martin Griffin & Mike Simpson from the jackson area voted aginst the tax increase (and their party vote.) Thoughts?
The shutdown of state government was halted early this morning when the Senate voted to expand the 6% sales tax to various services, the final major piece of a plan to erase a $1.75-billion deficit and balance a 2007-08 budget.
Democrat Lt. Gov. John Cherry cast the deciding vote for a 20-19 tally, the minimum needed for passage of an historic budget agreement that stopped what would have been a chaotic and embarrassing interruption of state services.
Three of 21 Republicans voted for the sales tax change, and only one of 17 Democrats opposed it.
“This budget agreement is the right solution for Michigan,” Gov. Jennifer Granholm said in a news release after the vote. “We prevented massive cuts to public education, health care and public safety while also making extensive government reforms and passing new revenue. With the state back on solid financial footing, we can turn our focus to the critical task of jumpstarting our economy and creating new jobs.”
The vote came about 4 a.m., about three hours after the House and Senate voted to raise the 3.9% income tax rate to 4.35%, and approved controversial changes in school employee health insurance and pensions benefits aimed at reducing state costs.
The Senate vote to raise the income tax was also 20-19, with Cherry as the tie-breaker.
The two votes triggered a 30-day interim state budget which Gov. Jennifer Granholm said she would sign – if coupled with a tax increase – to avert a shutdown.
Granholm said 35,000 state workers threatened with temporary layoffs would be told to report to work this morning at their regular work times.
The votes concluded an epic, 17-day struggle over taxes and the size and importance of state government, as the Legislature met in numerous late-night sessions with no results.
Democratic leaders hailed the approved plan as a responsible compromise, while Republicans decried it as a massive tax on Michigan’s struggling taxpayers.
Senate Majority Leader Mike Bishop, R-Rochester, had held out for a smaller tax hike and bigger spending cuts. He said he was disappointed at the final outcome, but said some spending reforms were enacted that would reduce the cost to taxpayers over the long haul.
In the end, Bishop said, Granholm and Democrats who control the House were able to flex their political will for the tax increases.
He said work would begin now to cut $435 million from state spending and produce a permanent 2007-08 budget.
“Our members are going to work hard to make this the best state to work, live and raise a family,” Bishop said.
The tax increases will generate $1.35 billion in additional revenue for the state, with the promise of $435 million in spending cuts.
Those cuts will be decided in the next month, as the Legislature determines spending for public schools and the state’s 19 departments.
The flurry of final votes late Sunday night and early this morning capped yet another marathon session in a tumultuous two-and-a-half weeks.
Late Sunday, the Democrat-controlled House passed a bill to raise the state income tax from 3.9% to 4.35% by a 57-52 vote with just two Republicans — Chris Ward of Brighton and Ed Gaffney of Grosse Pointe Farms — voting for it. Only three Democrats — Lisa Wojno of Warren, Martin Griffin of Jackson and Mike Simpson of Liberty Township near Jackson — voted against it.
Gaffney said he is “not happy with what I did,” but it needed to be done to “break the logjam and put us on a course to keep government open.”
House Minority Leader Craig DeRoche, R-Novi, criticized the votes to raise the income tax and extend the sales tax on services.
"This was vote for bureaucracy and special interests,"DeRoche said."This is one of the largest spending sprees in Michigan history, it is a 10% increase in the size of the bureaucracy.
He added, "We stood on principle to cut and reform and have the state live within its means, like working families have to live within their means."
Granholm and her fellow Democrats argued more revenue is needed to head off deep cuts to schools and state services for health and public safety.
House Speaker Andy Dillon said the House had done its part to solve the $1.75-billion deficit, putting the issue in the Republican-controlled Senate’s hands.
Asked why the House couldn’t have approved a $1.35-billion tax increase — the size of the income and sales tax increases the House approved Sunday night — weeks ago, Dillon replied: “It’s a nature of the legislative body to wait till the last second the make tough decision.”
The shutdown of state government was halted early this morning when the Senate voted to expand the 6% sales tax to various services, the final major piece of a plan to erase a $1.75-billion deficit and balance a 2007-08 budget.
Democrat Lt. Gov. John Cherry cast the deciding vote for a 20-19 tally, the minimum needed for passage of an historic budget agreement that stopped what would have been a chaotic and embarrassing interruption of state services.
Three of 21 Republicans voted for the sales tax change, and only one of 17 Democrats opposed it.
“This budget agreement is the right solution for Michigan,” Gov. Jennifer Granholm said in a news release after the vote. “We prevented massive cuts to public education, health care and public safety while also making extensive government reforms and passing new revenue. With the state back on solid financial footing, we can turn our focus to the critical task of jumpstarting our economy and creating new jobs.”
The vote came about 4 a.m., about three hours after the House and Senate voted to raise the 3.9% income tax rate to 4.35%, and approved controversial changes in school employee health insurance and pensions benefits aimed at reducing state costs.
The Senate vote to raise the income tax was also 20-19, with Cherry as the tie-breaker.
The two votes triggered a 30-day interim state budget which Gov. Jennifer Granholm said she would sign – if coupled with a tax increase – to avert a shutdown.
Granholm said 35,000 state workers threatened with temporary layoffs would be told to report to work this morning at their regular work times.
The votes concluded an epic, 17-day struggle over taxes and the size and importance of state government, as the Legislature met in numerous late-night sessions with no results.
Democratic leaders hailed the approved plan as a responsible compromise, while Republicans decried it as a massive tax on Michigan’s struggling taxpayers.
Senate Majority Leader Mike Bishop, R-Rochester, had held out for a smaller tax hike and bigger spending cuts. He said he was disappointed at the final outcome, but said some spending reforms were enacted that would reduce the cost to taxpayers over the long haul.
In the end, Bishop said, Granholm and Democrats who control the House were able to flex their political will for the tax increases.
He said work would begin now to cut $435 million from state spending and produce a permanent 2007-08 budget.
“Our members are going to work hard to make this the best state to work, live and raise a family,” Bishop said.
The tax increases will generate $1.35 billion in additional revenue for the state, with the promise of $435 million in spending cuts.
Those cuts will be decided in the next month, as the Legislature determines spending for public schools and the state’s 19 departments.
The flurry of final votes late Sunday night and early this morning capped yet another marathon session in a tumultuous two-and-a-half weeks.
Late Sunday, the Democrat-controlled House passed a bill to raise the state income tax from 3.9% to 4.35% by a 57-52 vote with just two Republicans — Chris Ward of Brighton and Ed Gaffney of Grosse Pointe Farms — voting for it. Only three Democrats — Lisa Wojno of Warren, Martin Griffin of Jackson and Mike Simpson of Liberty Township near Jackson — voted against it.
Gaffney said he is “not happy with what I did,” but it needed to be done to “break the logjam and put us on a course to keep government open.”
House Minority Leader Craig DeRoche, R-Novi, criticized the votes to raise the income tax and extend the sales tax on services.
"This was vote for bureaucracy and special interests,"DeRoche said."This is one of the largest spending sprees in Michigan history, it is a 10% increase in the size of the bureaucracy.
He added, "We stood on principle to cut and reform and have the state live within its means, like working families have to live within their means."
Granholm and her fellow Democrats argued more revenue is needed to head off deep cuts to schools and state services for health and public safety.
House Speaker Andy Dillon said the House had done its part to solve the $1.75-billion deficit, putting the issue in the Republican-controlled Senate’s hands.
Asked why the House couldn’t have approved a $1.35-billion tax increase — the size of the income and sales tax increases the House approved Sunday night — weeks ago, Dillon replied: “It’s a nature of the legislative body to wait till the last second the make tough decision.”
Thursday, September 20, 2007
This article was on MSN Money today and I thought it was helpful for those of you shopping for a mortgage..
8 big mortgage mistakes and how to avoid them
You can borrow too much or prepare too little. You can misjudge terms or overestimate your credit. With so much at stake, it’s no wonder so much can go wrong.
By Liz Pulliam Weston
Applying for a mortgage can be a daunting experience.
It's not enough that you're agreeing to take on the biggest debt of your life, one that represents two to three times your annual income. You're also confronted with piles of paperwork, flurries of fees and a tidal wave of terms, from amortization to title insurance, whose meaning is fuzzy at best." Whether it's a professor at Stanford or a ditch digger," said San Francisco mortgage broker Leon Huntting, "most people don't understand the loan process."
In this confusing and pressure-filled atmosphere, it's easy to make some mistakes. Here are some common ones that lenders and mortgage brokers see, and what you can do to prevent them.
Not fixing your credit
Mortgage brokers say they're confounded at the number of buyers who apply for a mortgage with their fingers crossed, hoping their credit will allow them to qualify for a loan. Before you even think about applying for a mortgage, obtain copies of your credit report and your FICO credit score. Your FICO score is the three-digit number that's used in 75% of mortgage-lending decisions. You can order your FICO score on the Web for a fee of $14.95, which includes a copy of your credit report. Doing this at least six months in advance should give you plenty of time to challenge any errors on your report and ensure that they're removed by the time you're ready to apply for a loan. You can also see the legitimate factors that are hurting your score and do something about them, such as paying off an overdue bill or paying down credit card debt.
Not looking for first-time home buyers' programs
These programs, typically sponsored by state, county or city governments, often offer better interest rates and terms than you'll find among private lenders, said mortgage consultant Diane St. James. Some are tailored for people with damaged credit, while most can help people with little saved for a down payment.
Some of these resources are listed on St. James' educational Web site, ABC Mortgage Consulting. You can also call the housing agencies for your state, county and city to see what they offer.
Not getting pre-approved for a loan
Many first-time borrowers confuse being "pre-qualified" with being "pre-approved." Pre-qualification is a pretty casual process, where a lender tells you how much money you probably can borrow based on how much money you make, how much debt you already have and how much cash you have for the down payment.
Getting pre-approval, by contrast, is a much more rigorous process and involves actually applying for a loan. You typically submit tax returns, pay stubs and other information. The lender verifies the information and checks your credit. If all goes well, the lender agrees in writing to make the loan.
In a hot or even warm real estate market, the house hunter who is only pre-qualified is a cooked goose. Home sellers and their agents give much more weight to offers being made by buyers who already have a loan lined up.
Borrowing too much money
Many people take out the biggest loan they possibly can, figuring that their incomes will eventually increase enough to make the payments comfortable. But few first-time buyers have any clear idea of how expensive homeownership can be. Not only will you shell out more for mortgage payments than you probably did for rent, but you'll also need to cover property taxes and homeowners insurance, as well as higher bills for utilities, maintenance and repairs than you faced as a renter.
Lenders are perfectly willing to let you overextend, knowing that you'll probably forgo vacations, retirement savings and new clothes for the kids rather than default on your mortgage.
"Mortgage money … is way too easy to get," said Ted Grose, president of the California Association of Mortgage Brokers. "People tend to overbuy … and that can really stress family life. It's also a formula for foreclosure."
Instead of going to the edge of affordability, consider limiting your housing costs -- mortgage payments, property taxes and homeowners insurance -- to 25% or so of your gross income. That's a much more sustainable level for most people, financial planners say, than the 33% lenders are typically willing to give you.
Not shopping around for rates and terms
Mortgage broker Allen Jackson of Bristol Home Loans in Bellflower, Calif., sees too many borrowers with decent credit getting stuck with loans meant for people with poor credit. So-called "subprime" loans are often more profitable, so less ethical mortgage brokers may push them.
If the borrower doesn't know what the prevailing interest rates are for someone with their credit standing, Jackson said, they can easily pay thousands of dollars more than they need to. You can see a listing of loan rates by credit score at MyFico.com, and a comprehensive listing of prevailing rates and fees can be found in MSN Money's Banking area.
Even people with a few dings on their credit can often qualify for better loans than they're typically offered, said Grose of 1st Mortgage Advisors in Los Angeles. He believes most of the people being shunted into government loan programs, such as Federal Housing Administration (FHA) loans, would pay less if they used mortgages now being offered by private-sector lenders.
Paying junk fees
Lenders can boost their profits by adding on a variety of fees. Some may be legitimate, some may be inflated and others may be pure fluff. Lenders may charge for "document preparation," for example, when all that involves typically is having a computer spit out a form. Or they may charge $150 for a credit check that cost them $15.
The time to challenge junk fees is not when you're about to sign the loan papers. Use a mortgage broker or call a number of lenders to compare their loans. Ask about the interest rate, the "points" charged to get that rate (each point is 1% of the total loan amount) and any other fees the lender charges. Then you can compare terms.
Once you've selected a lender, you'll be given a good-faith estimate of closing costs, which should include any fees being charged. Ask about each fee, and try to negotiate down the ones that seem excessive.
If the lender won't negotiate, "take that estimate to someone else," St. James said. "I'll bet they can beat it."
Unfortunately, this doesn't absolutely guarantee you won't face junk fees when it comes time to sign the loan. Many borrowers complain that they still face higher costs than were originally estimated, and so far the federal government has done little to prevent the practice. You can try challenging junk fees at this point, but most likely you'll have to bite the bullet and pay the fees to get your loan.
Not planning for closing costs
The day you're scheduled to get your loan, known as closing, you'll also be expected to write a check for a number of expenses, which typically include attorney's fees, taxes, title insurance, prepaid homeowners insurance, points and other lenders' fees. Together, these are known as closing costs, and the total can be eye-popping: somewhere between 2% to 7% of the selling price of the house. "Usually, when people see the closing costs, they're like a deer in the headlights," said mortgage broker Huntting, who works for Pacific Guarantee Mortgage. "It's much more than they ever think it's going to be."
Plan for closing costs by getting a good-faith estimate from your lender as early in the loan process as possible. Make sure you have the cash on hand (or rather, in your checking account) and that it doesn't "disappear" before closing because of sloppy bookkeeping or a last-minute emergency.
Not having enough cash on hand after closing
After borrowing too much, and scraping together every last dime for closing costs, many home buyers have nothing left in the bank to pay for anything unforeseen happening --and something unforeseen always happens.
"It costs so much just to move in," Grose said. "Then the water heater breaks."
Some people are so tapped out by the process, Jackson said, that they're not able to make their first mortgage payment on time. That's why "more and more lenders are requiring [borrowers have] three months' reserves after closing," Jackson said.
That's a smart idea for borrowers, anyway. Having three months' reserves, which means a fund equal to three months' worth of expenses, will help you handle the added costs of homeownership with much less stress.
8 big mortgage mistakes and how to avoid them
You can borrow too much or prepare too little. You can misjudge terms or overestimate your credit. With so much at stake, it’s no wonder so much can go wrong.
By Liz Pulliam Weston
Applying for a mortgage can be a daunting experience.
It's not enough that you're agreeing to take on the biggest debt of your life, one that represents two to three times your annual income. You're also confronted with piles of paperwork, flurries of fees and a tidal wave of terms, from amortization to title insurance, whose meaning is fuzzy at best." Whether it's a professor at Stanford or a ditch digger," said San Francisco mortgage broker Leon Huntting, "most people don't understand the loan process."
In this confusing and pressure-filled atmosphere, it's easy to make some mistakes. Here are some common ones that lenders and mortgage brokers see, and what you can do to prevent them.
Not fixing your credit
Mortgage brokers say they're confounded at the number of buyers who apply for a mortgage with their fingers crossed, hoping their credit will allow them to qualify for a loan. Before you even think about applying for a mortgage, obtain copies of your credit report and your FICO credit score. Your FICO score is the three-digit number that's used in 75% of mortgage-lending decisions. You can order your FICO score on the Web for a fee of $14.95, which includes a copy of your credit report. Doing this at least six months in advance should give you plenty of time to challenge any errors on your report and ensure that they're removed by the time you're ready to apply for a loan. You can also see the legitimate factors that are hurting your score and do something about them, such as paying off an overdue bill or paying down credit card debt.
Not looking for first-time home buyers' programs
These programs, typically sponsored by state, county or city governments, often offer better interest rates and terms than you'll find among private lenders, said mortgage consultant Diane St. James. Some are tailored for people with damaged credit, while most can help people with little saved for a down payment.
Some of these resources are listed on St. James' educational Web site, ABC Mortgage Consulting. You can also call the housing agencies for your state, county and city to see what they offer.
Not getting pre-approved for a loan
Many first-time borrowers confuse being "pre-qualified" with being "pre-approved." Pre-qualification is a pretty casual process, where a lender tells you how much money you probably can borrow based on how much money you make, how much debt you already have and how much cash you have for the down payment.
Getting pre-approval, by contrast, is a much more rigorous process and involves actually applying for a loan. You typically submit tax returns, pay stubs and other information. The lender verifies the information and checks your credit. If all goes well, the lender agrees in writing to make the loan.
In a hot or even warm real estate market, the house hunter who is only pre-qualified is a cooked goose. Home sellers and their agents give much more weight to offers being made by buyers who already have a loan lined up.
Borrowing too much money
Many people take out the biggest loan they possibly can, figuring that their incomes will eventually increase enough to make the payments comfortable. But few first-time buyers have any clear idea of how expensive homeownership can be. Not only will you shell out more for mortgage payments than you probably did for rent, but you'll also need to cover property taxes and homeowners insurance, as well as higher bills for utilities, maintenance and repairs than you faced as a renter.
Lenders are perfectly willing to let you overextend, knowing that you'll probably forgo vacations, retirement savings and new clothes for the kids rather than default on your mortgage.
"Mortgage money … is way too easy to get," said Ted Grose, president of the California Association of Mortgage Brokers. "People tend to overbuy … and that can really stress family life. It's also a formula for foreclosure."
Instead of going to the edge of affordability, consider limiting your housing costs -- mortgage payments, property taxes and homeowners insurance -- to 25% or so of your gross income. That's a much more sustainable level for most people, financial planners say, than the 33% lenders are typically willing to give you.
Not shopping around for rates and terms
Mortgage broker Allen Jackson of Bristol Home Loans in Bellflower, Calif., sees too many borrowers with decent credit getting stuck with loans meant for people with poor credit. So-called "subprime" loans are often more profitable, so less ethical mortgage brokers may push them.
If the borrower doesn't know what the prevailing interest rates are for someone with their credit standing, Jackson said, they can easily pay thousands of dollars more than they need to. You can see a listing of loan rates by credit score at MyFico.com, and a comprehensive listing of prevailing rates and fees can be found in MSN Money's Banking area.
Even people with a few dings on their credit can often qualify for better loans than they're typically offered, said Grose of 1st Mortgage Advisors in Los Angeles. He believes most of the people being shunted into government loan programs, such as Federal Housing Administration (FHA) loans, would pay less if they used mortgages now being offered by private-sector lenders.
Paying junk fees
Lenders can boost their profits by adding on a variety of fees. Some may be legitimate, some may be inflated and others may be pure fluff. Lenders may charge for "document preparation," for example, when all that involves typically is having a computer spit out a form. Or they may charge $150 for a credit check that cost them $15.
The time to challenge junk fees is not when you're about to sign the loan papers. Use a mortgage broker or call a number of lenders to compare their loans. Ask about the interest rate, the "points" charged to get that rate (each point is 1% of the total loan amount) and any other fees the lender charges. Then you can compare terms.
Once you've selected a lender, you'll be given a good-faith estimate of closing costs, which should include any fees being charged. Ask about each fee, and try to negotiate down the ones that seem excessive.
If the lender won't negotiate, "take that estimate to someone else," St. James said. "I'll bet they can beat it."
Unfortunately, this doesn't absolutely guarantee you won't face junk fees when it comes time to sign the loan. Many borrowers complain that they still face higher costs than were originally estimated, and so far the federal government has done little to prevent the practice. You can try challenging junk fees at this point, but most likely you'll have to bite the bullet and pay the fees to get your loan.
Not planning for closing costs
The day you're scheduled to get your loan, known as closing, you'll also be expected to write a check for a number of expenses, which typically include attorney's fees, taxes, title insurance, prepaid homeowners insurance, points and other lenders' fees. Together, these are known as closing costs, and the total can be eye-popping: somewhere between 2% to 7% of the selling price of the house. "Usually, when people see the closing costs, they're like a deer in the headlights," said mortgage broker Huntting, who works for Pacific Guarantee Mortgage. "It's much more than they ever think it's going to be."
Plan for closing costs by getting a good-faith estimate from your lender as early in the loan process as possible. Make sure you have the cash on hand (or rather, in your checking account) and that it doesn't "disappear" before closing because of sloppy bookkeeping or a last-minute emergency.
Not having enough cash on hand after closing
After borrowing too much, and scraping together every last dime for closing costs, many home buyers have nothing left in the bank to pay for anything unforeseen happening --and something unforeseen always happens.
"It costs so much just to move in," Grose said. "Then the water heater breaks."
Some people are so tapped out by the process, Jackson said, that they're not able to make their first mortgage payment on time. That's why "more and more lenders are requiring [borrowers have] three months' reserves after closing," Jackson said.
That's a smart idea for borrowers, anyway. Having three months' reserves, which means a fund equal to three months' worth of expenses, will help you handle the added costs of homeownership with much less stress.
Friday, September 14, 2007
30-year mortgage rates lowest in four months!
Good news for current homowners looking to refinance OR new buyers! This story was published by the associated press today.
By: Martin Crutsinger
Associated Press
WASHINGTON - Rates on 30-year mortgages dropped this week to the lowest point in four months, providing some relief for people hoping to refinance their existing mortgages.
Freddie Mac, the mortgage company, reported Thursday that 30-year, fixed-rate mortgages averaged 6.31 percent this week, the lowest level since May 17, when 30-year mortgages averaged 6.21 percent. The rate had been 6.46 percent last week.
Ease to homeowners
All mortgage products surveyed by Freddie Mac showed declines this week. Frank Nothaft, the company's chief economist, said this should provide help to homeowners who are hoping to refinance existing adjustable rate loans that are resetting from low introductory "teaser" rates.
An estimated 2 million such loans will reset over the next 18 months, raising fears about a wave of delinquencies as homeowners are unable to meet the new payments. Top Bush administration officials met with major mortgage servicing companies on Wednesday to urge them to extend as much assistance as possible to homeowners trying to avoid default by refinancing into mortgages they can afford.
Cutting interest rate
Many economists believe the Federal Reserve will decide at its Tuesday meeting to cut a key interest rate in an effort to insulate the economy from recent turmoil in housing and financial markets.
Rates on 15-year fixed-rate mortgages, a popular choice for refinancing, averaged 5.97 percent this week, down from 6.15 percent last week.
Rates on five-year adjustable rate mortgages averaged 6.17 percent, down from 6.32 percent, while one-year ARMs dropped to 5.66 percent. The mortgage rates do not include add-on fees known as points. Thirty-year mortgages carried a nationwide average fee of 0.5 point while 15-year mortgages carried an average fee of 0.4 point. Five-year ARMs had an average fee of 0.6 point and one-year ARMs carried an average fee of 0.8 point.
By: Martin Crutsinger
Associated Press
WASHINGTON - Rates on 30-year mortgages dropped this week to the lowest point in four months, providing some relief for people hoping to refinance their existing mortgages.
Freddie Mac, the mortgage company, reported Thursday that 30-year, fixed-rate mortgages averaged 6.31 percent this week, the lowest level since May 17, when 30-year mortgages averaged 6.21 percent. The rate had been 6.46 percent last week.
Ease to homeowners
All mortgage products surveyed by Freddie Mac showed declines this week. Frank Nothaft, the company's chief economist, said this should provide help to homeowners who are hoping to refinance existing adjustable rate loans that are resetting from low introductory "teaser" rates.
An estimated 2 million such loans will reset over the next 18 months, raising fears about a wave of delinquencies as homeowners are unable to meet the new payments. Top Bush administration officials met with major mortgage servicing companies on Wednesday to urge them to extend as much assistance as possible to homeowners trying to avoid default by refinancing into mortgages they can afford.
Cutting interest rate
Many economists believe the Federal Reserve will decide at its Tuesday meeting to cut a key interest rate in an effort to insulate the economy from recent turmoil in housing and financial markets.
Rates on 15-year fixed-rate mortgages, a popular choice for refinancing, averaged 5.97 percent this week, down from 6.15 percent last week.
Rates on five-year adjustable rate mortgages averaged 6.17 percent, down from 6.32 percent, while one-year ARMs dropped to 5.66 percent. The mortgage rates do not include add-on fees known as points. Thirty-year mortgages carried a nationwide average fee of 0.5 point while 15-year mortgages carried an average fee of 0.4 point. Five-year ARMs had an average fee of 0.6 point and one-year ARMs carried an average fee of 0.8 point.
Thursday, September 6, 2007
Do you think a home-owner bailout is the right thing to do to help the mortgage and housing markets?
Read this article from MSN Money regarding speculative "bail-out" program for homewoners facing foreclosure. We would appreciate your thoughts or comments. Please click on the "comments" link under the article:
Bush's mortgage bailout just might work
If insider buying is any indication, home builders and financial-services providers expect dramatic reversals of fortune in the coming months.
By Jon Markman
With his stunning decision last week to let a federal housing agency guarantee mortgages of distressed homeowners, President Bush appears to have launched a "surge" in the financial markets to match the Pentagon's efforts in Iraq.
His plan seems straightforward:
First, use winks and nods to convince his top Federal Reserve appointee, Ben Bernanke, that it would be in the best interest of both men to slash interest-rate targets by as much as a percentage point, and to do it quickly so the move has time to work its magic before the next election.
Second, use every lever available in the executive branch to provide a direct, emphatic bailout to overstretched mortgage holders at risk of foreclosure.
And third, dump as much of the financial burden for paying for the rescue of voters, aka homeowners, on the nation's banks, rather than on taxpayers.
If the market comes to believe his plan will succeed -- and the plan just might -- you can expect a rally in the shares of financial-services providers and home builders that will stun even the bulls, with big-cap banks such as Wells Fargo (WFC, news, msgs) and SunTrust Banks (STI, news, msgs) rising as much as 25% over the next 12 months and some beaten-down home builders doubling in value.
Bush's surge solution for homeowners would, ironically, take a page from his father's rescue of Latin American governments and bankers in 1989 with a set of financial instruments that came to be known as Brady bonds. In that case, U.S. banks had lent billions of dollars to Latin American companies for use in economy building without obtaining sufficient collateral.
After thousands of loans went into default, it became clear that the money had been siphoned off by kleptocrats and crooks, and there was therefore no cash flow available for repayments. When U.S. banks clamored to be made whole, Latin American governments took over their citizens' obligations but did not have the ability to make payments, either.
Richard Bove, a banking analyst at brokerage Punk Ziegel, points out that the first Bush administration then had two choices: support U.S. banks and demand that the countries tax their people to pay back the loans, or blame the U.S. banks for making idiotic loans in the first place, force them to forgive the debts and let the crooks keep their booty.
President George H.W. Bush chose the latter in the interest of hemispheric amity and stability, and some creative geniuses in a Treasury Department headed by former Wall Street banker Nicholas Brady figured out a way for the governments of Mexico, Argentina and Brazil to convert the bad loans into dollar-denominated bonds that could be sold elsewhere. In effect, Bush 41 whisked bad credits off balance sheets south of the border with a stroke of a pen.
Now Bush 43 faces the same dilemma, only this time the bad loans are right here at home. His choices: He can thumb his nose at lenders who made stupid loans, castigate brainless homeowners who took out mortgages they could not repay, jail fraudster mortgage brokers who exploited a loosey-goosey system to generate exorbitant fees -- and stand smugly by as families in Republican strongholds across the West and South lose their homes. Or he could follow his dad's Brady bonds solution and basically forgive and forget by launching a mortgage bailout of unprecedented scope.
Based on Bush's announcement last week of a new Federal Housing Administration program to help around 80,000 at-risk homeowners obtain debt relief -- an effort modest in scope but stunning in its reversal of prior policy -- it's clear he will go for the latter in the interest of helping his party avoid a wipeout next November.
Bove notes that a precedent for a widespread mortgage-assistance program lies in the Emergency Home Finance Act of 1970, which established these mechanisms to help challenged households:
Banks would originate mortgage loans with 1% interest rates.
The Federal Housing Administration and Department of Veterans Affairs would insure the loans against loss.
The Government National Mortgage Association, aka Ginnie Mae, would buy the mortgages at par from the banks, allowing the banks to make a small profit.
Ginnie Mae, taking a sizable loss, would then sell these loans to Fannie Mae (FNM, news, msgs) and Freddie Mac (FRE, news, msgs) at a discount so that the buyers would earn reasonable yields.
Fannie and Freddie would fund these purchases with low-cost, government-guaranteed debt.
As a result, Bove speculates, tens of thousands of at-risk homeowners would get to keep their homes. Ginnie Mae would lose tens of billions of dollars that would be repaid by banks and taxpayers at a pace and in a manner similar to the Iraq reconstruction effort. Fannie Mae and Freddie Mac would end up with huge increases in the sizes of their portfolios. And, most importantly, the nationwide housing collapse would disappear as an election theme for Democrats.
Although this may seem a bit far-fetched, insiders in the financial services and home-building industries are buying their own companies' shares these days at a record pace -- essentially betting that something like this scenario will transpire. Home-building companies' executives bought $15.9 million worth of their firms' annihilated shares in August, the largest monthly purchase in the sector since Thomson Financial started keeping track in 1990.
The last time that insiders even came close to this level of buying, in September 2001, the sector rose 55% in value over the next six months while the S&P 500 Index ($INX) advanced 10%. Thomson analysts suggest raw valuation is a factor in insiders' zeal for their stocks -- as the price-to-book value of the sector hit 0.75 last month, the lowest since October 1990 -- but clearly a larger motivating force is at work.
The bottom line is that Bush has ample tools at his disposal to make the foreclosure crisis vanish if he is willing to make a financial and political commitment on a par with his pledge to stabilize Iraq. With almost one in every 7.5 housing units in the United States empty due to overbuilding during the easy-money years, it would take years for enough demand to emerge under normal conditions to soak up supply. But don't underestimate the president's capacity and motivation to speed up the process with a surge of looser credit and check writing.
Wells Fargo, now trading at $36.50 a share, could easily go to $50 in a year in this scenario, as its competition from the likes of Countrywide Financial (CFC, news, msgs) and lesser mortgage bankers and brokers have been thrashed and it has its pick of the best talent fleeing those firms. SunTrust, now trading at $78, could go to $95. . . .
The three home builders with the most insider buying are Meritage Homes (MTH, news, msgs), where one insider bought $12.9 million in shares in August; Brookfield Homes (BHS, news, msgs), where three insiders bought $1.4 million; and Lennar (LEN, news, msgs), where one insider spent $845,100. Shares of these three builders are down 63%, 49% and 46%, respectively.
Read this article from MSN Money regarding speculative "bail-out" program for homewoners facing foreclosure. We would appreciate your thoughts or comments. Please click on the "comments" link under the article:
Bush's mortgage bailout just might work
If insider buying is any indication, home builders and financial-services providers expect dramatic reversals of fortune in the coming months.
By Jon Markman
With his stunning decision last week to let a federal housing agency guarantee mortgages of distressed homeowners, President Bush appears to have launched a "surge" in the financial markets to match the Pentagon's efforts in Iraq.
His plan seems straightforward:
First, use winks and nods to convince his top Federal Reserve appointee, Ben Bernanke, that it would be in the best interest of both men to slash interest-rate targets by as much as a percentage point, and to do it quickly so the move has time to work its magic before the next election.
Second, use every lever available in the executive branch to provide a direct, emphatic bailout to overstretched mortgage holders at risk of foreclosure.
And third, dump as much of the financial burden for paying for the rescue of voters, aka homeowners, on the nation's banks, rather than on taxpayers.
If the market comes to believe his plan will succeed -- and the plan just might -- you can expect a rally in the shares of financial-services providers and home builders that will stun even the bulls, with big-cap banks such as Wells Fargo (WFC, news, msgs) and SunTrust Banks (STI, news, msgs) rising as much as 25% over the next 12 months and some beaten-down home builders doubling in value.
Bush's surge solution for homeowners would, ironically, take a page from his father's rescue of Latin American governments and bankers in 1989 with a set of financial instruments that came to be known as Brady bonds. In that case, U.S. banks had lent billions of dollars to Latin American companies for use in economy building without obtaining sufficient collateral.
After thousands of loans went into default, it became clear that the money had been siphoned off by kleptocrats and crooks, and there was therefore no cash flow available for repayments. When U.S. banks clamored to be made whole, Latin American governments took over their citizens' obligations but did not have the ability to make payments, either.
Richard Bove, a banking analyst at brokerage Punk Ziegel, points out that the first Bush administration then had two choices: support U.S. banks and demand that the countries tax their people to pay back the loans, or blame the U.S. banks for making idiotic loans in the first place, force them to forgive the debts and let the crooks keep their booty.
President George H.W. Bush chose the latter in the interest of hemispheric amity and stability, and some creative geniuses in a Treasury Department headed by former Wall Street banker Nicholas Brady figured out a way for the governments of Mexico, Argentina and Brazil to convert the bad loans into dollar-denominated bonds that could be sold elsewhere. In effect, Bush 41 whisked bad credits off balance sheets south of the border with a stroke of a pen.
Now Bush 43 faces the same dilemma, only this time the bad loans are right here at home. His choices: He can thumb his nose at lenders who made stupid loans, castigate brainless homeowners who took out mortgages they could not repay, jail fraudster mortgage brokers who exploited a loosey-goosey system to generate exorbitant fees -- and stand smugly by as families in Republican strongholds across the West and South lose their homes. Or he could follow his dad's Brady bonds solution and basically forgive and forget by launching a mortgage bailout of unprecedented scope.
Based on Bush's announcement last week of a new Federal Housing Administration program to help around 80,000 at-risk homeowners obtain debt relief -- an effort modest in scope but stunning in its reversal of prior policy -- it's clear he will go for the latter in the interest of helping his party avoid a wipeout next November.
Bove notes that a precedent for a widespread mortgage-assistance program lies in the Emergency Home Finance Act of 1970, which established these mechanisms to help challenged households:
Banks would originate mortgage loans with 1% interest rates.
The Federal Housing Administration and Department of Veterans Affairs would insure the loans against loss.
The Government National Mortgage Association, aka Ginnie Mae, would buy the mortgages at par from the banks, allowing the banks to make a small profit.
Ginnie Mae, taking a sizable loss, would then sell these loans to Fannie Mae (FNM, news, msgs) and Freddie Mac (FRE, news, msgs) at a discount so that the buyers would earn reasonable yields.
Fannie and Freddie would fund these purchases with low-cost, government-guaranteed debt.
As a result, Bove speculates, tens of thousands of at-risk homeowners would get to keep their homes. Ginnie Mae would lose tens of billions of dollars that would be repaid by banks and taxpayers at a pace and in a manner similar to the Iraq reconstruction effort. Fannie Mae and Freddie Mac would end up with huge increases in the sizes of their portfolios. And, most importantly, the nationwide housing collapse would disappear as an election theme for Democrats.
Although this may seem a bit far-fetched, insiders in the financial services and home-building industries are buying their own companies' shares these days at a record pace -- essentially betting that something like this scenario will transpire. Home-building companies' executives bought $15.9 million worth of their firms' annihilated shares in August, the largest monthly purchase in the sector since Thomson Financial started keeping track in 1990.
The last time that insiders even came close to this level of buying, in September 2001, the sector rose 55% in value over the next six months while the S&P 500 Index ($INX) advanced 10%. Thomson analysts suggest raw valuation is a factor in insiders' zeal for their stocks -- as the price-to-book value of the sector hit 0.75 last month, the lowest since October 1990 -- but clearly a larger motivating force is at work.
The bottom line is that Bush has ample tools at his disposal to make the foreclosure crisis vanish if he is willing to make a financial and political commitment on a par with his pledge to stabilize Iraq. With almost one in every 7.5 housing units in the United States empty due to overbuilding during the easy-money years, it would take years for enough demand to emerge under normal conditions to soak up supply. But don't underestimate the president's capacity and motivation to speed up the process with a surge of looser credit and check writing.
Wells Fargo, now trading at $36.50 a share, could easily go to $50 in a year in this scenario, as its competition from the likes of Countrywide Financial (CFC, news, msgs) and lesser mortgage bankers and brokers have been thrashed and it has its pick of the best talent fleeing those firms. SunTrust, now trading at $78, could go to $95. . . .
The three home builders with the most insider buying are Meritage Homes (MTH, news, msgs), where one insider bought $12.9 million in shares in August; Brookfield Homes (BHS, news, msgs), where three insiders bought $1.4 million; and Lennar (LEN, news, msgs), where one insider spent $845,100. Shares of these three builders are down 63%, 49% and 46%, respectively.
Wednesday, August 29, 2007
ERA Summer Wine Down was a huge success!
Thank you to everyone that supported our annual charity event for MDA! The night was great and we were able to raise $6500 to donate to MDA local families! Thanks again, we truly appreciate it and we look forward to seeing you next year.
Monday, August 20, 2007
Fixed-rate mortgage or ARM? How do you choose?
Where you are getting ready to purchase a home there is always a decision to be made on what type of loan will be best for your situation. With the proliferation of Adjustable Rate Mortgages or ARMs in the past 5 years, the Federal Reserve has posted a tool on it's website to help buyers compare the short AND long term costs of both types of funding.
I checked this tool out and it works pretty well. Make sure you have your propesed rates from your lender before you sit down to use this. You can also just make up rates or use current market rates if you want. The tool does make you enter a "projected" adjustment on your ARM after the initial period. That is, how many percentage points do you think interest rates will go up or down during the "fixed" period. I used +1% & +2% as tests. I did not use a negative percentage because I don't expect interest rates to go down too much.
If you are looking into financing currently, you may want to check this tool out. Maybe you could have your mortgage advisor go through it with you as a way to help decide what option fits the best!
Here is the link to the Mortgage Comparison Calculator on the Federal Reserve website:
https://www.federalreserve.gov/apps/mortcalc/
I checked this tool out and it works pretty well. Make sure you have your propesed rates from your lender before you sit down to use this. You can also just make up rates or use current market rates if you want. The tool does make you enter a "projected" adjustment on your ARM after the initial period. That is, how many percentage points do you think interest rates will go up or down during the "fixed" period. I used +1% & +2% as tests. I did not use a negative percentage because I don't expect interest rates to go down too much.
If you are looking into financing currently, you may want to check this tool out. Maybe you could have your mortgage advisor go through it with you as a way to help decide what option fits the best!
Here is the link to the Mortgage Comparison Calculator on the Federal Reserve website:
https://www.federalreserve.gov/apps/mortcalc/
Wednesday, August 15, 2007
It's time for the 2nd Annual ERA Reardon Summer Wine Down!
Once again it's time for us to host our yearly MDA fundraiser! With your help last year we raised over $5,000 for local MDA charities. We plan on raising even more this year! Here are the details:
August 23rd, 2007
5:00 - 7:30 PM
Bella Notte Ristorante, 3rd floor
Appetizers, wine tasting, live music, silent auction & more!
Tickets are $25 each
You can purchase tickets by calling Matt at 517-782-2996, email him at matthew.mansfield@era.com OR just reply to this post and leave your contact information!
We are also looking for item donations for our silent auction, so if you or your company could donate an item that would be great! Call Matt if you can help.
Thanks for your continued support of our charity events!
Tuesday, August 7, 2007
2007 Relay For Life is a huge success for Team ERA!
This weekend, Team ERA participated in the Jackson Realy For Life. This is our 14th year participating in the event, and we were able to raise over $4000 for the American Cancer Society! We all had a great time walking and seeing friends from past years. A special thanks to anyone who helped us to reach our goals this year! We appreciate your support.
Friday, July 27, 2007
The US Housing Price Roller Coaster, 1890-Present....Literally!
The website speculativebubble.com has charted US home prices (adjusted for inflation) from 1890 to 2007, then they put the data into Roller Coaster Tycoon 3 and built and "virtual" roller coaster that you can ride. Talk about your unique spins on the housing market! Watch the video and then leave us your thoughts by clicking on the "Comments" link below this story.
It is possible that they have too much time on their hands, but it is pretty fun!
It is possible that they have too much time on their hands, but it is pretty fun!
Thursday, July 19, 2007
New website lets people browse local HUD foreclosure listings!
There is a new website available that lets people search all of the foreclosure listings that are offered through HUD (Michigan Department of Housing & Urban Development). Not all foreclosures in jackson will be on the site, but the inventory that HUD has (foreclosures that were funded by an FHA-insured mortgage) is quite extensive and covers all price ranges. If you see a home that you are interested in touring, just call us and we can show it to you! If you like it, we can submit your bid online. With all of the great deals out there right now, this could be a good opportunity to find some investment properties or maybe just get a great price on a home for yourself. Here is the link to the search page:
http://sales.clfres.com/SearchListings.aspx
If you have any questions on this site or the buying process, we have many Realtors who have experience in the foreclosure market. Simply post a question by clicking on the "Comments" link below this article, or send us an email at: info@erareardonrealty.com or you can simply call our office at 517-782-2996. Thanks!
http://sales.clfres.com/SearchListings.aspx
If you have any questions on this site or the buying process, we have many Realtors who have experience in the foreclosure market. Simply post a question by clicking on the "Comments" link below this article, or send us an email at: info@erareardonrealty.com or you can simply call our office at 517-782-2996. Thanks!
Monday, July 9, 2007
New loan helps buyers make improvements to their new home
I thought that this was an interesting loan product that everyone might like to hear about! With all of the city homes that are for sale, this is a flexible product that can help to make necessary improvements. This information is courtesy of Wendy Robison at Providence Mortgage Company:
The FHA Streamline 203k is a loan designed for borrowers to finance the cost of minor repairs/rehab work for a property at the time of purchase. Before the loan is closed the borrower will obtain estimates from contractors/retailers for items and work that needs to be done. The lender will add the cost of these estimates to the price of the home and hold the money for the repairs in escrow to be drawn on as the work is done. This feature of the loan works much like a construction loan.
FHA Streamline 203K highlights:
Designed for borrowers who wish to purchase a home that needs minor rehabilitation work
Maximum $35,000 in repairs/rehab - no minimum
Choose your own contractor
Mortgage company approves the proposed work plan, contractor and cost estimates and works directly with borrower and contractor throughout draw process.
This program can be used for the following repair/rehab items:
Repair/Replacement roofs, gutters and downspouts
Repair/Replacement/upgrade of existing HVAC systems
Repair/Replacement/upgrade of plumbing and electrical systems
Repair/Replacement of existing flooring
Minor remodeling, such as kitchens, which does not involve structural repairs
Exterior and interior painting
Weatherization: including storm windows and doors, insulation, weather stripping, etc.
Appliances including free-standing ranges, refrigerators, washers/dryers, dishwashers and microwave ovens.
Improvement for accessibility fo rpersons with disabilities
Lead based paint stabilization or abatement
Repair/replace/add exterior decks, patios, porches
Basement finishing and remodeling, which does not involve structural repiars
Basement waterproofing
Window and door replacements and exterior wall residing
Septic systems and/or well repair or replacement
If you have thoughts or questions about this product, please call our office at 517-782-2996 or just simply click on the "comments" link below this article and I will get back with you right away!
Monday, July 2, 2007
Mid Michigan cities among the most affordable in the nation
Excerpts from CNNMoney.com story published today:
The most affordable U.S. housing markets
The Midwest has the most affordable housing. California has the least.
By Les Christie, CNNMoney.com staff writer
July 1 2007: 2:37 PM EDT
NEW YORK (CNNMoney.com) -- The housing slump has its benefits; affordability improved in many metro areas across the nation during the first three months of this year.
According to a report from Wells Fargo Bank and the National Association of Home Builders (NAHB), about 44 percent of all homes sold in the United States during the first three months of the year were affordable to families earning the median household income for the area they lived in.
NAHB President Brian Catalde, said, "This is up from 41.6 percent of homes sold in the final quarter of 2006, and is likely the result of lower house prices as well as the very favorable financing conditions that existed at the beginning of this year."
The Indianapolis area, where the median home cost $116,000, was the most affordable major U.S. market for the period, but joining it at number one this time was the Youngstown, Ohio metro area ($78,000). In both places, the index judged affordable 89.0 percent of the homes sold.
A smaller market area, Kokomo, Indiana ($93,000), led all cities; 93.5 percent of all homes sold there could be bought by median income households. Also highly affordable were Lansing, Michigan ($100,000, 91.1 percent) and Lima, Ohio ($78,000, 90.4 percent).
The top 13 markets were all located in the Midwest region. Cumberland, Maryland ($81,000, 86.8 percent), representing the South, was the highest ranked city in the rest of the United States. Elmira, New York ($69,000, 86.7 percent) was close behind. The most affordable western city was Pueblo, Colorado ($115,000, 76.3 percent).
California dominated the list of most unaffordable cities with just 3.0 percent of Los Angeles residents able to buy the median home, priced at $525,000. In nearby Santa Ana ($610,000, 4.4 percent) and Salinas ($569,000, 4.6 percent), conditions weren't much better.
The New York metro are, where the median home cost $500,000, was the least affordable place outside California. It recorded an affordability index score of 6.0 percent. Miami ($288,000, 10.0 percent) trailed all other southern cities and Chicago ($248,000, 46.5 percent) brought up the rear in the Midwest.
The Lansing area, Battle Creek, Flint, Detroit, Saginaw, Bay City & Monroe Areas of Michigan all made the top 15 cities, with Lansing being #2 in the country with 91.1% of homes being affordable to a family with the median household income for the area ($64,000). Jackson was not in on the list due to market size, but I would anticipate it to be very high on the list if it had been.
So what does this all mean? Well, if you are buying a home soon you can look forward to favorable pricing! Home prices have moderated in the past 12 months, bringing them in line with buyer expectations. This is a positive step toward turning around the housing market. Affordable housing will encourage more first-time buyers, and possibly more out of town buyers.
Let us know what you think! Click on the "comments" link below and give us your thoughts.
Thanks!
ERA Reardon Realty
The most affordable U.S. housing markets
The Midwest has the most affordable housing. California has the least.
By Les Christie, CNNMoney.com staff writer
July 1 2007: 2:37 PM EDT
NEW YORK (CNNMoney.com) -- The housing slump has its benefits; affordability improved in many metro areas across the nation during the first three months of this year.
According to a report from Wells Fargo Bank and the National Association of Home Builders (NAHB), about 44 percent of all homes sold in the United States during the first three months of the year were affordable to families earning the median household income for the area they lived in.
NAHB President Brian Catalde, said, "This is up from 41.6 percent of homes sold in the final quarter of 2006, and is likely the result of lower house prices as well as the very favorable financing conditions that existed at the beginning of this year."
The Indianapolis area, where the median home cost $116,000, was the most affordable major U.S. market for the period, but joining it at number one this time was the Youngstown, Ohio metro area ($78,000). In both places, the index judged affordable 89.0 percent of the homes sold.
A smaller market area, Kokomo, Indiana ($93,000), led all cities; 93.5 percent of all homes sold there could be bought by median income households. Also highly affordable were Lansing, Michigan ($100,000, 91.1 percent) and Lima, Ohio ($78,000, 90.4 percent).
The top 13 markets were all located in the Midwest region. Cumberland, Maryland ($81,000, 86.8 percent), representing the South, was the highest ranked city in the rest of the United States. Elmira, New York ($69,000, 86.7 percent) was close behind. The most affordable western city was Pueblo, Colorado ($115,000, 76.3 percent).
California dominated the list of most unaffordable cities with just 3.0 percent of Los Angeles residents able to buy the median home, priced at $525,000. In nearby Santa Ana ($610,000, 4.4 percent) and Salinas ($569,000, 4.6 percent), conditions weren't much better.
The New York metro are, where the median home cost $500,000, was the least affordable place outside California. It recorded an affordability index score of 6.0 percent. Miami ($288,000, 10.0 percent) trailed all other southern cities and Chicago ($248,000, 46.5 percent) brought up the rear in the Midwest.
The Lansing area, Battle Creek, Flint, Detroit, Saginaw, Bay City & Monroe Areas of Michigan all made the top 15 cities, with Lansing being #2 in the country with 91.1% of homes being affordable to a family with the median household income for the area ($64,000). Jackson was not in on the list due to market size, but I would anticipate it to be very high on the list if it had been.
So what does this all mean? Well, if you are buying a home soon you can look forward to favorable pricing! Home prices have moderated in the past 12 months, bringing them in line with buyer expectations. This is a positive step toward turning around the housing market. Affordable housing will encourage more first-time buyers, and possibly more out of town buyers.
Let us know what you think! Click on the "comments" link below and give us your thoughts.
Thanks!
ERA Reardon Realty
Mortgage rates drop for second week
This release from CNNMoney.com was from June 28th:
NEW YORK (CNNMoney.com) -- Mortgage rates eased slightly for the second week in a row after taking their biggest jump in four years two weeks ago, Freddie Mac said Thursday.
The government-sponsored loan buyer said the average rate on a 30-year fixed-rate loan slipped to 6.67 percent for the week ending June 28, from 6.69 percent the previous week.
NEW YORK (CNNMoney.com) -- Mortgage rates eased slightly for the second week in a row after taking their biggest jump in four years two weeks ago, Freddie Mac said Thursday.
The government-sponsored loan buyer said the average rate on a 30-year fixed-rate loan slipped to 6.67 percent for the week ending June 28, from 6.69 percent the previous week.
Relay For Life Bowling Event was a huge success!
Thanks to everyone who participated in the charity bowling event! We had fun and raise some money for a terrific cause. We look forward to holding this event again next year, so please look for info next June. If you attended the event, please leave us your thoughts or comments by clicking on the "comments" link below. Thanks again!
ERA Reardon Realty
Friday, June 15, 2007
ERA Reardon announces charity Bowling event to benefit Relay For Life!
We are pleased to announce that we will be holding a Bowling fundraiser June 28th to benefit our Relay For Life team! The event will be held at Center Stage Lanes in Michigan Center. Bowling times will be from 4PM to 10PM. No reservations are necessary, just show up and bowl with your family friends or co-workers. The cost is $5 per game and includes shoe rental. A full menu of food & drinks will be available for purchase during the event. Center Stage Lanes has ben very generous in offering us their entire bowling alley for the evening to help raise money so please support the event if you can! For more information, please call Matt Mansfield at 517-782-2996 for details!
Below is a link to map & directions to Center Stage Lanes:
Map & Directions
Please leave us your thoughts or comments by clicking on the "Comments" link below.
Below is a link to map & directions to Center Stage Lanes:
Map & Directions
Please leave us your thoughts or comments by clicking on the "Comments" link below.
Monday, June 4, 2007
Relay For Life charity garage sale is a huge success!
Thanks to everyone who donated items and to all of the shoppers that turned out last Saturday to help us raise money for our Relay Team! With your help we raised over $1000 to help find a cure for Cancer. Our goal this year is to raise $5000 before the August 4th event. If you want to help by joining our team or donating funds toward our goal, please visit www.reardonrelay.com
Please leave us your thoughts or comments by clicking on the "Comments" link below.
Thanks again!
Rick Reardon
Please leave us your thoughts or comments by clicking on the "Comments" link below.
Thanks again!
Rick Reardon
How much home can you afford?
You probably hear many different opinions from different people on how much home you can afford. That is because there are so many different factors that need to be considered, and everyone's situation is different.
It is very important to not "over-buy" when purchasing a home. The last thing you want is to be tied down by your mortgage payment. I recently found this handy calculator on MSN Money that can help guide you in deciding how much home to buy. It calculates a suggested home price based on:
Income
Monthly Expenses
Length of Mortgage
Interest Rate
Down Payment
Credit Rating
I tried it out and it seems to work pretty well. Of course, a lending professional is the best guide for deciding what price is right for you, but this might be a good start. Give it a try and let me know if it work for you. Here is the link address to use the calculator:
http://articles.moneycentral.msn.com/Banking/Loan/HomeAffordabilityCalculator.aspx
Thanks!
Rick Reardon
It is very important to not "over-buy" when purchasing a home. The last thing you want is to be tied down by your mortgage payment. I recently found this handy calculator on MSN Money that can help guide you in deciding how much home to buy. It calculates a suggested home price based on:
Income
Monthly Expenses
Length of Mortgage
Interest Rate
Down Payment
Credit Rating
I tried it out and it seems to work pretty well. Of course, a lending professional is the best guide for deciding what price is right for you, but this might be a good start. Give it a try and let me know if it work for you. Here is the link address to use the calculator:
http://articles.moneycentral.msn.com/Banking/Loan/HomeAffordabilityCalculator.aspx
Thanks!
Rick Reardon
Welcome to the ERA Reardon Real Estate Blog!
Hi everyone!
I hope that you enjoy our new site. We will be keeping the site up-to-date with the latest industry news, local stories and updates for the Real Estate industry and ERA Reardon Realty.
For those of you that are as new to this as we are, I will start with the basics:
Q: What is a "blog"?
A: It is a "web log" or interactive online page where you can share news, pictures and videos. The greatest part is that anyone can comment or ask questions about the stories that we post!
We feel that this is a great way to keep all of you updated on the current market. Whether you are buying or selling a home currently or you are just beginning your home search, please check back every week for new content. Current customers please use this as a way to communicate with us as well! Feel free to leave comments on any of our stories. We would love to hear your thoughts!
Thanks!
Rick Reardon
Owner, ERA Reardon Realty
Subscribe to:
Posts (Atom)
