Monday, December 11, 2006

Considering the Reverse Mortgage Method?

Reverse Mortgage

After (40) years of bump, thump, bang and wang I ran into the Reverse Mortgage. What a great opportunity for us to cash in on some incredible growth over the last several years in the real estate market. While values bounce around up and down the overall trend has risen over the years. As a younger person I was busy raising a family and now its time for us. Finding such a marvelous financial vehicle as the reverse mortgage is great!

Moving by selling our property was an option but we've become so accustomed to our environment we felt staying put near familiar surroundings was still the best for us. Our children and grandchildren live close by as well. We essentially felt that we wanted to have a close relationship with all our family members - so the decision to stay put was pretty easy to make.

With some savings, a small pension, social security and the availability of equity in our home the decision was even easier and comfortable. I discovered in the research phase that using some of our home equity did not encumber or endanger the ownership of our home. Neither did it create a re-payment provision. The ease and flexibly of this type of transaction put our minds to rest knowing that we were not endangering our ownership aspects.

We found that implementing the program was quite simple, easy and non-intimidating. We felt no pressure to make a decision either way and appreciate the patience and the way in which our inquiry was handled. Usually, at least for most of us, making decisions and setting up strategies can create a great deal of anxiety and stress. But, to our surprise frankly we found that setting up our reverse mortgage was very easy and simple to do.

About the Author

You can go to reverse mortgage for more precise and exact information

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Avoid This First Time Homebuyer Mistake That Could Cost Thousands

First time homebuyers often have no idea what sort of house payment they can afford. As a result, they often take on more house payment than they can afford and end up in credit trouble.

There are two vital things first time homebuyers must consider when deciding how much they can afford to pay for a home. The first and by far the most important factor they should consider is how high a payment they feel comfortable making and can reasonably pay. The second criteria are the debt ratios allowed by their loan program or loan approval. However, if they base their numbers on the lender's allowable debt ratio, the payment first time homebuyers qualify for is often much more than they will be comfortable paying.

If you wish to become a first time homebuyer, the best way to determine how much of a house payment you can be comfortable paying is to draft a simple monthly budget. A detailed budget worksheet is available for free at http://24hourmortgageinfo.com/budget

1. List your monthly income from all sources. That total is your gross monthly income.

2. Subtract from your gross income any taxes you pay or owe monthly - Federal taxes, state taxes, FICA (social security taxes), and Medicare taxes. Don't forget to include the monthly amount of any estimated taxes you have to pay. What is left is your net income. Although this will not usually be considered in the lender's debt ratio computation, it is very important in your personal analysis

3. Next list your other monthly expenses, such as savings, utilities, groceries, insurance, car payments, tuition, clothing, entertainment, etc. (If some are payable yearly or quarterly, divide the amounts by 12 or 4 and add that to the monthly expenses.) Do not include current rent or housing payments, since those would no longer be applicable.

4. Subtract the total of your monthly expenses from your net income. The resulting amount is what is left for a house payment.

Of course, you can always adjust your discretionary spending to leave more for a house payment. Just be sure to be realistic if you do that. First time homebuyers often try to bite off more than they can chew. An unrealistic budget can leave you in a financial bind when reality sets in. Don't count $200 a month as enough to feed your family of four. Make sure your numbers make sense for your family and don't leave you with a nice house and no food to eat.

About the Author

Carl Pruitt is a 21 year veteran of the mortgage/real estate industries in Georgia. He helps first time homebuyers with credit problems get into a home with no money down and low rates. The budget worksheet is available for free at http://24hourmortgageinfo.com/budget Free mortgage reports and advice are available at http://24hourmortgageinfo.com

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How to Buy Real Estate Software and Not Regret It

Whether you're a real estate professional or a real estate investor, trying to find good real estate software to help you achieve your particular goal can be daunting.

There are a variety of real estate software solutions available in a wide-range of prices with various features, tools, and printable reports. So where do you begin? How do you buy the real estate software program that will best suit your need? Here are a couple of suggestions.

1. Search for real estate software that is specific to your interest. For example, if you want to work with or evaluate rental income property, search for real estate investment property software, real estate investing software, or real estate investor software. The more specific your search, the more likely you will find the real estate software you are looking for without having to sort through thousands of pages.

2. Decide on a budget. How much are you willing to spend to buy a software program that could save you from having to re-invent the wheel, and perhaps save you countless hours of valuable time? Real estate software developers have taken the time to make your job easier, why not take advantage of it? The cost might be minimal or significant depending on your particular financial circumstance, just keep in mind that any worthwhile real estate software program will not be free.

3. Examine the reports offered by the real estate software. Look to see if the developer offers sample reports you can preview. Are they professional-quality, easily understood, and do they contain all the corresponding information you need? If you're planning to use the reports to make presentations, will they make you look good, and do they provide your name recognition? Realtors are keen on name-riders, so be sure that it's your name plastered all over the reports, not just the software company's name.

4. Examine the program's features and tools. Are they mere fluff, or are they genuinely meaningful? Will they make your experience with the program a pleasing one, provide you with time-savers, and offer you something unique, or are they just rhetorical phrases trying to sell you the program? Real estate software developers generally provide a list of the program's features. If not, or if you discover that the features and tools are nothing more than a shameless attempt to promote the product, move on to another website.

5. Make a judgment about whether the real estate software is user-friendly. A good place to begin is on the website itself. Is the software website well organized, creative, and easy to navigate, or lack-luster and confusing? Remember, the same company claiming that their program is easy to use undoubtedly designed the website. Look at screenshots when provided. Developers often include screenshots from the program, so you can preview the forms and reports close up and personal. Do they suggest clear minded design or just a half-hearted attempt to look creative?

6. Read the testimonials given by current customers. Most real estate software developers are ethical enough not to post testimonials that are made up over lunch. Generally, customer testimonials posted on a website are from real people that don't receive compensation to share their product experience. So you should be able to trust them.

7. Consider whether the program is stand-alone or requires a third-party software program. For example, real estate investment software programs are commonly applications for Microsoft Excel that function only if Excel is installed on your computer. This is not a bad thing (Excel is the most powerful spreadsheet program in the world and includes thousands of sophisticated functions that a stand-alone program might not include). However, keep in mind that Excel will be an added expense if you don't currently have it.

8. Look for the software's support policy. Once you buy the software are you able to call and talk to a live person, or is future contact limited to email, something less personal like a forum, or even worse, is there no means of contact at all? Moreover, who are you contacting? Nothing is more satisfying than being able to discuss the program directly with the developer, and likewise nothing more frustrating than buying real estate software from a company that remains allusive.

9. Check to see if the real estate software is downloadable. Unless it can be bought from the shelf, being able to download the real estate software will get it into your hands immediately. Moreover, downloads eliminate the packing, shipping and handling costs the developer must bury in the asking price.

10. Read the software company's profile. Most real estate software was developed by an individual sitting alone somewhere at a computer; with a name unrecognizable to anyone other than to family, friends, colleagues and customers. So read about the developer. Does the experience level support the type of software offered? Are there credentials? Is there a mailing address and phone number? If not, be less tantalized by that particular real estate software at any cost.

So there you have it. Straight from the mouth of one who has experienced the dilemma of having to find real estate software that would be right for the task. I've paid big bucks and small bucks. I've been delightfully surprised and overwhelmingly disappointed. It's the nature of software. But all in all, in that some real estate software that has been good has been very good, it made the search worth it, and my incorrect choices thankfully pale in comparison.

About the Author

James R Kobzeff is an active real estate broker and developer of ProAPOD Real Estate Investment Software

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How Can First Time Homebuyers Compare Mortgage Costs

Many first time homebuyers focus in on the interest rate and the APR when shopping for a loan. While these are indeed very important aspects of the loan, they may not even be the most important for a first time homebuyer. Comparing the Good Faith Estimate provided by the lender can help a first time homebuyer determine if they are really giving you a good deal or if they are trying to taking you to the cleaners. This article is about how a first time homebuyer can use the Good Faith Estimate to compare lenders' costs, but remember there is a huge difference between getting the best costs and getting the best loan.

Within three days after applying for a loan, by law the lender must provide you in person or in the mail a completed Good Faith Estimate. This is a form that represents an estimate of the fees and costs of necessary items to successfully process and close your mortgage loan. These items include origination fees, discount points and other fees. The Good Faith Estimate is normally a legal sized form that is divided into six different categories. These categories are numbered 800, 900, 1000, 1100, 1200, and 1300. It will be accompanied by a Truth in Lending statement that gives you the APR on the loan as well. You should pay some attention to the Annual Percentage Rate, but keep in mind that this is a figure that is easily manipulated and makes some very bad assumptions. APR assumes zero inflation and that the value or buying power of a Dollar today will be exactly equal to the value of a Dollar even 30 years from now. More significantly, the APR calculation assumes that the mortgage will never be paid off early. This is completely unrealistic. Very few first time homebuyers (or other borrowers for that matter) last longer than 5 years without refinancing or selling. So APR is a very poor method of comparing loans. When comparing Good Faith Estimates focus on the section that relates directly to the lender.

Sections 900 through 1300 of the Good Faith estimate are the where third party charges and fees are listed. The lender has only minimal control over these. Sections 900 and 1000 are items required by the lender to be paid in advance or deposited with the lender. This section is where you set up your accounts to pay the taxes, hazard insurance and mortgage insurance and also where you pay your prepaid interest on the mortgage. Although it says 'required by the lender", these charges are specific to the loan program and not the lender. At closing, they will be the same with every lender.

Section 1100 is where the charges from the closing attorney or title company will be. These will be controlled by the closing agent and not the lender. Most of the time, this closing attorney or title company will have been chosen by your real estate agent. You may notice that these fees vary between lenders. This is because the lender is the one that prepares the Good Faith Estimate for you. The lender will estimate these charges based on what these items typically cost. The lender has no control over items in these sections so disregard comparing these when comparing lenders. However, do take note if one loan officer has significantly lower fees in these sections than others do. Some lenders may try to trick you by giving low figures for the third party fees so that their higher lender fees on their Good Faith Estimate will even out. Then when you have to pay extra money at closing, they tell you their numbers are just an estimate, and your agent requested an expensive attorney.

Section 1200 includes all the government related taxes and recording fees. Again, these should be the same regardless of the lender so there is no reason to use these as a comparison. However, if a particular loan officer is significantly wrong on these items, you may want to find out how experienced they really are.

We skipped over section 800 until now because this is the one that includes the items to really compare. These are the charges and fees that relate directly to your particular lender. This is where a first time homebuyer should really focus and review items to make comparisons. This section may include administration fees, application fees, document preparation fees, funding fees, mortgage broker fees, processing fees, underwriting fees, wire transfer fees and any other fees that a lender might be charging. These can be confusing for a first time homebuyer. The key thing you must do here is simply ask why each fee is there and get a reasonable explanation. A competent loan officer will be able to explain these to a first time homebuyer and why each one is there.

Remember, it is vital that you look at the total package and not just focus on the interest rate. Unfortunately, first time homebuyer loans can be complicated and have several moving parts. These can be altered to make one part look more attractive if necessary. A lender can make any part of the loan attractive if they feel that is what is really important to you. For example, one lender may offer a $300,000 loan a half point lower but may have $3,000 in extra fees added in the Good Faith Estimate. Because of the ridiculous assumptions required by law to be used to calculate the APR, this loan may also have a lower annual percentage rate than a loan with lower fees and higher interest rates! So as a first time homebuyer, be sure to spend some time talking over the good faith estimate with your loan officer. Ask questions. Compare the entire package together to see which is really the best deal. In that conversation, take the time to get a feeling for whether your loan officer has your best interest at heart. A good loan officer, who understands the needs of a first time homebuyer, will take the time to put the numbers on that good faith estimate and fit them into the total context of your life.

Carl Pruitt is a 21 year veteran of the mortgage/real estate industries. He helps first time homebuyers with credit problems get into a home with no money down and low rates. Free mortgage reports and advice, including more information on comparing costs, are available at http://24hourmortgageinfo.com

About the Author

Carl Pruitt is a 21 year veteran of the mortgage/real estate industries. He helps first time homebuyers with credit problems get into a home with no money down and low rates. Free mortgage reports and advice, including more information on comparing costs, are available at http://24hourmortgageinfo.com

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If you are looking for homes for sale in Spring Lake NJ, Newark NJ, Marlboro NJ or any other area in New Jersey ERA Othello Realty are the real estate agents that you are looking for. Whether you are looking to buy or sell your New Jersey real estate they can help you. We list homes for sale in Manalapan NJ, Point Pleasant Beach real estate and many other New Jersey properties for sale. Aberdeen NJ Homes for Sale, Marlboro NJ Real Estate, Homes for Sale in Marlboro NJ, Marlboro NJ, and Information on Marlboro NJ. Search through thousands of houses for sale in New Jersey. We are the realtors NJ!

Home Building - Kitchen Cabinets

Cabinets are the key ingredient in any kitchen. They will influence the look and feel of the heart of your home more than anything else because it's not only the most visible part of the kitchen, but the "Meeting Place" of every home. Picking the right cabinetry is essential in creating your kitchen's personality, but don't let appearances mislead you. It's what's behind the door that will matter the most, every time you open your cabinet drawer or door.

Since cabinets represent the single largest investment in a new kitchen (about 60 to 70 percent of a kitchen's cost), you should carefully explore all your options to avoid confusion and potentially costly mistakes. Here's a little Cabinetry 101 to help you get started choosing the right products for your cabinet design.

Stock, Semi-Custom and Custom Cabinets When you think stock, semi-custom and custom, don't think of these choices in terms of the level of quality, because fine cabinetry is available with all three - as is poor quality. These terms simply designate the type of production method used to make the cabinet. Simply put, stock cabinets are mass-produced, semi-custom are stock cabinets that can be slightly altered and custom cabinets are built to order to meet individual needs and specifications. All three varieties are available in framed (a box with a frame surrounding the front edge) and frameless (a box with no face frame) construction. The cost of having your kitchen cabinets can start around $7,000 to $9,000 for stock and $14,000 to $18,000 for custom. With the amount of styles, materials, brand names, accessories and hardware out there, the price can quickly escalate.

Stock Cabinets These are the plentiful cabinets, because they're produced in large quantities on a mass production scale. Cabinet manufacturers, dealers and home improvement centers stock pile large quantities of cabinet parts so cabinets can be assembled quickly. Not wanting to miss out on a piece of the pie, stock cabinet manufacturers have greatly improved and expanded its product line to include a nice bounty of sizes, shapes, styles, wood species and finishes. The drawback to using stock cabinets is that you can't make any modifications, so what you see is what you get. You may also find you come up a little short in width and height (filler strips are used to fill the gaps). Stock cabinets still remain the most popular choice because they're affordable and readily available.

Semi-Custom Cabinets Semi-custom cabinets are a stock line of cabinets where simple modifications will be made at the time of production. Semi-custom also offers you more choices when it comes to style, construction materials and colors. You can be a little more creative when going semi-custom by choosing some unique built-ins like pullout bins, lazy susans, matching interiors and inverted frames. Be sure to ask the manufacturer if this option is available. Be thorough with semi-custom because changes can be very expensive and increase delivery time (which is already a month or more) and they may not be returnable if they don't fit.

Custom Cabinets Don't be fooled by the word custom or think that you will be able to draw a design and have it made to your specifications, because that is hard to find (and very, very costly). In the real world of manufactured cabinetry, custom can mean anything from slight modifications to elaborate add-ons. Most manufacturers start out with a basic product line offering cabinets in standard sizes and customize from there. The big difference between a semi-custom and a custom manufacturer is the number of changes they are willing to make to their product lines. Most manufacturers offer a large selection of finish options, trims and storage configurations and accessories. Be patient if you go custom because it can take 12 weeks or longer before your cabinets are delivered and in many cases payment in full is required when the order is placed.

Cabinet Doors

You should enter the cabinet selection process through the doors. Their style, color, and decoration will contribute most to your cabinets' overall look. Be sure that your countertops, flooring, and other design elements complement the cabinets you choose. The first thing you need to decide is the material you want to use and how you want to finish it off.

Wood Wood doors remain the preferred entree, not just because they're so plentiful but because they're durable, beautiful and versatile. The top woods are oak, maple, cherry, hickory and pine. If you're having a hard time deciding what natural wood you prefer, ask yourself what kind of grain you like. If you prefer a hardwood with a tight grain and a strong pattern that darkens when exposed to light, you'll want to go with cherry. Maple is a light hardwood with a tight grain and less noticeable pattern, while oak is a light hardwood with an open grain and striped pattern. For a more open grain with a strong pattern and random knots you can go for pine - just remember it's a soft wood and shows dents and scratches easily. The odd wood out is hickory because it has very dramatic grain patterns and color variations.

Shaping The Door - Slab, Raised and Recessed Panels When it comes to deciding the shape of your cabinet doors you can choose to go flat, raised or recessed in a pattern that can be plain and simple or intricately carved. Slab is a flat door style that gives the appearance of a solid piece of wood with no raised or recessed profile. They're usually made out of several pieces of solid stock lumber and joined with an adhesive. If you opt for laminate slab you'll get a door made of substrate material and then covered with laminate. The best way to understand the look of a recessed panel is to think of a picture frame with a flat panel. The frame can be attached to the panel by using a mitered joint, tenon and mortise joint (similar to tongue and groove) or cope and pattern joint. These panels are easy to decorate and popular when made with a groove. A raised panel is constructed in the same manner as a recessed panel except it's given an edge by cutting it dimensionally and then routing or shaping the desired edge profile, like square, Cathedral or arched.

Finishing it off Thanks to hi-tech finishing techniques used by cabinet manufacturers, cleaning your cabinets is no longer a major household chore.

By using polyurethane finishes, particularly those that are heat catalyzed, your cabinets should only require a good dusting or wiping. Think longevity, when you choose your finish, because a clear finish will show the natural changes in wood over time, while staining the wood in its natural color will lock that shade in forever.

Behind The Doors

Know All Your Panels - Side, Back, Top and Bottom Now that you've satisfied your taste - aesthetically speaking - it's time to get practical and learn about what's behind the doors. After all, a cabinet is just a box...and the quality of the cabinet lies in the construction of the box, not the door. As a rule, when it comes to cabinetry - you get what you pay for. High-end cabinets are usually always high quality and low cost cabinets are just that - poor quality. The majority of cabinet manufacturers offer several different levels of prices based on quality. Don't forget why you need cabinets in the first place - storage.

Your storage area is usually combined of a series of individual boxes, joined together side-by-side. Boxes that sit on the floor (base cabinets) are covered with a countertop, and may have all drawers, doors, shelves, pull-outs or a combination of these. Sink bases almost always have doors, but no shelves or drawers, leaving the interior space open for the sink and plumbing.

Boxes that hang on the wall, are called wall cabinets, and offer storage above countertops and appliances using shelves.

The panels (sides) that make up the box need to have enough strength and structural integrity to keep the box from falling apart. In the base cabinet, the side panels support the full weight of the cabinet on the floor in framed cabinets.

It may surprise you to learn that solid wood is rarely used for cabinet panels. This is because solid wood tends to warp over time when exposed to moisture. Engineered wood, particle board, furniture-grade flakeboard, medium-density fiberboard (MDF) and plywood are more stable than solid wood, and are used in the majority of cabinets. To help make the panels more water-resistant and durable they're usually treated with special chemicals. All of these material have an excellent reputation for durability and screw-holding power, especially plywood. So before you make you're final decision, be sure to look at the quality of its panels - all of them.

It may not sound like a big deal now, but when you start washing dishes or preparing a meal you'll want to know that your toekick board was installed properly. The toekick is a recessed area at the front of the cabinet near the floor that allows you to stand close to the counter. It also adds support to the cabinet floor and keeps unwanted critters out of your cabinets.

Drawers Your drawers will likely be made of solid wood or MDF, have framed or flat slab fronts and be held together by dovetail, mortise-and tenon or butt joints. Thing big, when you think about your drawers, because that's usually the first place where storage space is never enough. A top drawer should be able to support at least 75 pounds.

Cabinet Hardware

Just when you think you're done designing your cabinets, now you have to think about hardware. Hardware is available in every conceivable style and color, but you should pay close attention to the hinges, knobs, pulls and backplates, because these pieces can really make a statement in your kitchen.

Hinges The most important piece of hardware are your hinges, which come in several varieties like the self-closing, spring loaded barrel hinges, knife hinges and concealed hinges. Barrel hinges are fully exposed and provide a wide door opening. For a full 180 degree door opening you'll want to use knife hinges. This hinge is usually screwed to the cabinet frame and partially embedded. Depending on the manufacturer the hinge may be either partially or fully visible when the door is closed. For a more European style where the hinge is hidden you'll want to use concealed hinges. Most of them are self-closing but with a partial opening (110 degrees).

Drawer Suspensions As far as abuse and daily wear-and-tear goes, your drawers are always at center stage. What will matter most over time is the style of drawer slides, which include full extension, b all bearing, track-and-roller and wood.

* Full-extension slides attach to the bottom or the sides of the drawer and provide full access to the drawer interior. Their ball-bearing system adds stability and strength and are available in stronger versions to store heavier kitchen items.

* Ball-bearing slides attach to the bottom of the drawer sides and offer smooth, quiet operation. Their concealed runners mounted to the bottom of the drawer don't get as dirty as those mounted on the side.

* Track-and-roller slides attach to the drawer sides. Their epoxy-coated steel tracks and nylon rollers offer quiet operation but are less stable than ball-bearing ones.

* Wooden slides work as slots in the drawer sides or bottoms and move the drawer along a wooden runner. This option is no longer very popular because the drawers tend to stick as the wood expands and contracts.

Decorative Hardware - Knobs or Pulls Now that you have your cabinets designed to your liking, you need to think about what you want to use to open and protect your new drawers and doors. Do you want knobs or pulls or a combination of both? When it comes to choosing colors, materials and finishes the list is endless. You got brass, chrome, gold, silver, pewter, nickel, porcelain, marble, glass, wood - and that's just a sampling. Once you pick the material, you'll have to choose from a selection of finishes - polished, antique, aged, forged, carved, enamel and more. Stay focused and remember that you're looking for function and comfort from your hardware - not an ulcer.

Knobs are handles (generally small in size), that are mounted to the drawers and doors with a single bolt or screw. Knobs are no longer limited to being round. They can be flat with rounded edges, round like a ball, square, "T" shaped, or even bun shaped and they come in a variety of finishes.

Most questions concerning knobs involve size, quantity or positioning. Look at knobs as being the eyes and nose of your cabinets - if placed improperly they can look out of place and take away from the rest of the kitchen. You'll never go wrong if you keep your knob under a 1 1/2 inch diameter.

Pulls perform the same service as knobs, but tend to be larger or more elaborate, and can greatly alter the look of the cabinet. Pulls may be combined with a backplate or used alone and require two or more screws. They also come in many different styles, but the more common types are D handles, bail handles, ring handles, latch handles, and cup pulls.

Don't Be Shy - Ask questions????

1. Look for the KCMA seal, which means the Kitchen Cabinet Manufacturers Association has approved the construction of the cabinets and the materials used to build them meet minimum industry standards. 2. Do you recognize the brand name and does it carry a Best Buy seal or other evidence of independent testing and approval? 3. Does the manufacturer offer the necessary parts and pieces necessary to achieve the style and design you're looking for? 4. Will the cabinets be delivered by your deadline? 5. The manufacturer's warranty can be a very valuable part of what you pay for when you make your cabinet purchase and can vary from one year to lifetime. Find a warranty that makes you comfortable about your investment.

Trendy Samplings

As cabinets continue to grow and change, consumers are left with a draw full of options and trends. Here's some trends that you might want to sample. There's a new process called glazing, where a contrasting color stain is laid on top of a base finish to give it a more prominent look. If you want to show-off some of your kitchen gadgets or special china you can have a glass door installed.

More than anything else, consumers crave the convenience of built-ins, which can range from "appliance garages" that hide aging appliances like toasters behind pull-down doors to tilt-out sink bay drawers to spice racks. The most popular built-in is for the least popular item in a kitchen - the trash can.

About the Author

Tammy Crosby

The House Designers has handpicked the most popular home designs from our collections to offer you the best home plans in America. We also offer you the ability to contact the designer of your home directly to help you in any way possible with making one of the biggest decisions of your life.

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