CA Freeways Will Soon Generate Electricity

Energy conservation is probably not the first thing that comes to mind when you think about freeways jammed with idling vehicles.

But in California, which has some of the most congested freeways in the country, that’s about to change. The California Energy Commission (CEC) has approved a pilot program in which piezoelectric crystals will be installed on several freeways.

No, these aren’t some kind of new-agey crystals with mystical powers. Piezoelectric crystals, about the size of watch batteries, give off an electrical discharge when they’re mechanically stressed, such as when a vehicle drives over them. Multiply that by thousands of vehicles and it creates an electric current that can be harvested to feed the grid.

In fact, scientists estimate the energy generated from piezoelectric crystals on a 10-mile stretch of freeway could provide power for the entire city of Burbank (population: more than 105,000).

“I still get stopped on the street by people who ask what happened to the idea of using our roads to generate electricity,” said Mike Gatto, a Los Angeles assemblyman, in a press release announcing the program. “California is the car capital of the world and we recycle just about everything. So why not capture the energy from road vibrations and put it to good use?”

Piezoelectric-based energy‐harvesting technology is already being used in other countries. Since 2009, all the displays in the East Japan Railway Company’s Tokyo station have been powered by people walking on the piezoelectric flooring. Italy has signed a contract that will install this technology in a portion of the Venice-to-Trieste Autostrada. Israel is already using this technology on some highways, which is how Gatto got the idea for the pilot program in California. A friend returning from a trip to Israel raved about a road that produced energy …

Piezoelectric technology has been used for years in electric guitars and sonar. The crystals are “in effect the reverse of sonar: a vibration comes in and an electric pulse comes out,” according to the press release …

“Thirty years ago, no one would have believed that black silicon panels in the desert could generate ‘solar‘ power,” Gatto stated. “Piezoelectric technology is real and I am glad the state has finally acknowledged its potential in becoming an energy source.”  read more, see video –>  http://www.ecowatch.com/california-freeways-generate-electricity-piezoelectric-crystals…

San Diego County Median Home Price Up By 6.4%

Home prices across Southern California continued to increase in May but the pace at which they went up appeared sluggish, said the S&P CoreLogic Case-Shiller Indices released Tuesday.

San Diego County’s median home price, adjusted for seasonal swings, increased 6.4 percent in the last 12 months, while Los Angeles and Orange Counties increased 5.4 percent …

National home prices increased 5 percent — unchanged from last month …

The rate at which prices in San Diego are increasing has been mostly flat or decreasing since the start of the year. The median price year-over-year was up 6.9 percent in January, 6.4 percent in February, 6.2 percent in March and 6.3 percent in April. …

The median home price in San Diego County hit $495,000 in June, CoreLogic reported last week.

David Blitzer, managing chairman of the Index Committee at S&P Dow Jones Indices, said in May’s report that the housing market was strong, in part because sales of existing homes reached the highest monthly level since 2007.   Read more –>   http://www.sandiegouniontribune.com/news/2016/jul/26/home-price-socal-may/

San Diego County Home Prices Up 6.2%

San Diego County median home price was up 6.2 percent in the last 12 months

Southern California home prices continued to outpace the national average, and many major cities, said the S&P/Case-Shiller Home Price Index released Tuesday.  Prices nationally, adjusted for seasonal variation, rose 5.2 percent in the 12 months ended in March, with the Pacific Northwest and West seeing the biggest gains.

San Diego County’s median home price increased 6.2 percent, lower than the 6.4 percent increase in February and 6.9 percent in January … Economists said home prices continue to rise because of improved labor markets and employment rates, low mortgage rates and limited home supply.

Mark Goldman, finance and real estate lecturer at San Diego State University, said a slower rate of appreciation is a good thing. He said price increases of 3.5 percent to 5 percent are more sustainable.  “If prices go up too quickly, then there is speculation in the market and that’s dangerous,” he said.

read more –>  http://www.sandiegouniontribune.com/news/2016/may/31/home-prices-case-shiller/?fbshare=2049744

Don’t Get Scammed by IRS Imposters!

 

With Tax Day less than a month away, IRS imposter scams are in full force, robbing taxpayers of millions of their hard-earned dollars. Watch our video here and read on to learn how this scam works and how you can avoid getting taken by it. How it Works: You get a call from someone claiming to be an IRS employee. The caller claims you owe a specific amount in taxes, and may threaten to arrest you if you don’t pay immediately. The call seems legitimate because the caller ID looks like it’s from the IRS, and the caller may even know part of your Social Security number. What You Should Know: The IRS will NEVER call and demand immediate payment without first sending a notice through the mail. The IRS will never ask for credit or debit cards over the phone, and will never threaten you with arrest for nonpayment.

What You Should Do:

Don’t press 1 to speak to the operator – this puts you at risk for receiving more calls. If a call like this makes you concerned that you may owe taxes, call the IRS directly at 800-829-1040. Call AARP’s helpline for advice at 877-908-3360.

Learn more about this scam and tax identity theft here. And please share this important alert with your friends and family!

read more, watch vid —>  http://www.aarp.org/money/scams-fraud/fraud-watch-network/

Housing Industry Riding Coat Tails of Surging Job Market

Where the job market goes, the housing industry follows. And with the economy continuing to hum, both sectors are surging further upward in the new year, according to economists from two companies who would know: realtor.com® and job search site indeed.com.

“The news is good. Employers are looking at 2016 as being quite strong,” said Tara Sinclair, the chief economist for indeed.com, during a joint press briefing in Washington, DC, with realtor.com® chief economist Jonathan Smoke.

Both laid out predictions for another year of steady home sales and job growth, particularly in the country’s largest urban centers. New York City, Atlanta, Chicago, and Los Angeles, as well as the high-tech hubs of the San Francisco Bay Area, Denver, Seattle, and Austin, all had strong employment gains—and, not at all coincidentally, some of the country’s busiest real estate markets.

It’s a simple equation: Hot job markets attract job seekers, and job seekers need a place to live … read more —>  http://www.realtor.com/news/trends

Fed Raises Key Interest Rate Slightly

WASHINGTON (AP) — The Federal Reserve is raising interest rates from record lows set at the depths of the 2008 financial crisis, a shift that heralds modestly higher rates on some loans.

The Fed coupled its first rate hike in nine years with a signal that further increases will likely be made slowly as the economy strengthens further and inflation rises from undesirably low levels.

Wednesday’s action signaled the central bank’s belief that the economy has finally regained enough strength 6½ years after the Great Recession ended to withstand modestly higher borrowing rates.

“The Fed’s decision today reflects our confidence in the U.S. economy,” Chair Janet Yellen said at a news conference.

The Fed said in a statement after its latest meeting that it was lifting its key rate by a quarter-point to a range of 0.25 percent to 0.5 percent. Its move ends an extraordinary seven-year period of near-zero borrowing rates. But the Fed’s statement suggested that rates would remain historically low well into the future, saying it expects “only gradual increases.”… read more —>  Fed Raises Key Interest Rate

4 Reasons Why 2016 is a Good Time to Buy a Home

With 2016 fast approaching, now is the time for renters to get off the sidelines, start organizing their finances and take on the excitement of homeownership.

But given the recent history of the housing market and Americans’ increasing need to stay mobile, it is understandable that it can be nerve-wracking to invest your hard-earned money in a home.

However, unlike years past, all key economic indicators are ripe and there are two major changes to the mortgage process that help make 2016 a good year to buy a home.

1. Rental rates continue to rise

With the on-going low supply and high demand of rental units, rental rates are continuing to rise. In the last 12 months, 88% of property managers have raised their rent prices. And there is no sign of that stopping given that 68% of property managers predict their rental rates will rise again in 2016.

2. Interest rates are historically low

Freddie Mac’s latest survey of lenders shows little change in the 30-year fixed-rate mortgages, which averaged at 3.89% for the month of September compared to 4.16% a year ago. Low interest rates make home buying more affordable.

3. Clear mortgage terms

The recent TRID announcement has mandated clearer terms at the closing table. For first-time homebuyers, this is a huge benefit because it will ensure there are no surprises at the closing table. These clear terms will help homebuyers better understand both their financial commitment and what is expected of them.

4. Down payment protection will be available

Writing a check for a down payment on a home is often one of the largest investments someone will make. Down payment protection is a new option that can give modern homebuyers the flexibility they need to more confidently and securely buy a home. When homebuyers put less than 20% down at closing, this kind of coverage protects their down payment just like private mortgage insurance protects the bank.

Given that the average employee tenure in the U.S. is 4.6 years overall, and 3 years for millennials, it’s understandable that the modern homebuyer may be nervous to commit to living in one location for an extended period of time.

However, the current state of the market and these major mortgage changes will help to ensure that when life happens, the homebuyer won’t be completely out of luck when it comes to protecting their nest egg.

courtesy of:  http://www.housingwire.com/

Condos Outpacing Single-Family Homes in Appreciation

Condos are appreciating faster than single-family homes in markets across the U.S., especially where job markets are thriving or urban renewal is underway, according to the third quarter Zillow September Real Estate Market Report. Condos in the U.S. are appreciating at a rate of 5.1 percent, compared to the 3.7 percent appreciation among single-family homes.

Condo values crashed hard during the housing bust that kicked off the Great Recession. From the pre-recession peak to the lowest value, the median U.S. single-family home lost 20 percent of its value; from peak to bottom, the typical U.S. condo lost 33.2 percent of its value.

The housing market has since bounced back, and condos have finally caught up to other homes. In September, according to Zillow’s data, they are appreciating faster than single-family homes in nearly two-thirds of the top 35 most populated housing markets … read more —> http://zillow.mediaroom.com/

Does It Make Sense to Buy Energy-Efficient Appliances?

4 Tips for Replacing Appliances With Energy-Efficient Models

Buying appliances that use less power can be a smart thing to do, but figuring out when to swap an existing model for what’s often a more expensive version can be tough. The payback for new, energy-saving appliances can vary greatly depending on the age of existing models and your usage habits, as well as the cost of electricity in your area.

The National Resources Defense Council suggests you consider a more efficient model for any appliance that’s more than 12 years old. Here are some shopping guidelines to help you do that:

Choose certified appliances. If you remember only one thing when you shop, make it this: Look for the government-backed Energy Star label. This blue and white logo indicates models that have been certified as using less energy.

Go beyond purchase price. Price shouldn’t be the only factor you consider. Find the EnergyGuide label — a yellow and black tag required on most appliances — and look for the estimated annual cost of operating the appliance. Use both figures to make your decision.

Buy only as big as you need. Bigger isn’t necessarily better. Extra-large appliances require more energy, and they run at reduced efficiency when they’re not operating at full capacity.

Look for energy-saving features. Some models or features can save you more money. For instance, a top freezer refrigerator will use 10 to 25 percent less energy than a side-by-side or bottom-mount model, and a natural gas-powered water heater will typically cost less to operate than an electric model.

New appliances are not only more efficient, but they’ve also been proven to perform the same as or better than older appliances, so you won’t have to sacrifice performance to gain energy savings.

courtesy of:  BrettMills@CFSonline.biz

Bennion Deville Homes Going Independent

Established, successful Southern California real estate brokerage leaving Windermere

SAN DIEGO, Calif. – September 30, 2015 – Bob Bennion and Bob Deville, founders and co-owners of one of the largest residential real estate franchisee brokerages in Southern California, Windermere Real Estate Southern California, are going independent starting October 1, 2015. The departure from the franchise network along with the company’s name and branding reflects an enhanced focus on the company’s ongoing growth strategy.

Both Windermere Real Estate SoCal, in San Diego and Orange counties, and Windermere Real Estate Southern California, in the Coachella Valley, will be operating under a new brand: Bennion Deville Homes. The 29-office real estate company debuted the brokerage’s innovative branding in a companywide meeting to more than 1,000 agents on Thursday, September 24. The company also announced cutting edge marketing and technology tools that will be debuting on BDHomes.com, the company’s new website, over the coming months … read more —>  www.sandiegouniontribune.com/news/

How EF Ratings Affect Home Water Heaters

April 16, 2015, the minimum Energy Factor (EF) ratings for virtually all residential water heaters increased. An EF rating measures the annual efficiency of a water heater – a higher EF means a more efficient water heater. Manufacturers will no longer produce units that do not meet the new standards. Products manufactured prior to April 16, 2015 can continue to be purchased and installed.

What is the new regulation for 20-55 gallon water heaters?

Both gas and electric water heaters between 20-55 gallons will have more insulation. This means they could be up to 2 inches taller and wider. If water heaters get bigger, then some units might not fit in current installation sites. (e.g. small closet)

What is the new regulation for water heaters over 55 gallons?

Both gas and electric water heaters will have unique installation requirements. Gas water heaters over 55 gallons will use a new condensing technology. Electric water heaters over 55 gallons will be required to use heat pump technology, which calls for the installation of a condensate disposal line, and the provision of sufficient air volume to accommodate the heat source, which may prevent installation in smaller spaces.

courtesy of:  http://www.homecarebuzz.com/

FICO Scores and Mortgage Interest Rates

If you want to take advantage of today’s low interest rates, you must qualify for your rates with attractive credit scores. High credit scores are earned through on-time credit payments, carefully managing debt, and keeping accounts in good standing, among other means.

Back in the 1980s, The Fair Isaac Company developed software that issues credit scores, a number that indicates your level of creditworthiness based on data gathered from creditors, landlords, tax bases, student loan lenders, and child support agencies, savings institutions, lack of credit and much more.

All three credit-reporting bureaus, Experian, TransUnion and Equifax use the software to determine your credit “FICO” score. It’s possible to have three different credit scores because the credit bureaus either have inconsistent data about you or they weigh your data a little differently.

Credit scores are a major short-hand tool bankers use to manage risk. They want to learn how much credit you use and how wisely, your debt-to-income, and if you have any defaults, liens, bankruptcies, judgments, etc. They look at your monthly obligations such as child support or alimony.

According to MyFICO.com, FICO scores range from 300 to 850, the higher the better.

• Payment History — 35%
• Total Amounts Owed — 30%
• Length of Credit History — 15%
• New Credit — 10%
• Type of Credit in Use — 10%

When you apply for a mortgage, the bank uses your social security number to look up your credit reports and scores. They base their decision to lend to you, plus how much interest they charge you, on your scores.

The best loan rates go to the borrowers with the best credit histories. As you can see from the FICO break-down, that most banks will be most interested in how much you owe and whether you pay on time.

You can get a loan with lower scores, but expect banks to require more money down, and to lower the amount they’ll loan you on a home so you can keep your debt-to-income ratio lower. And, they’ll charge you higher interest rates.

Rates that are advertised are typically for a benchmark 30-year, fixed-rate mortgage. These low-appearing rates are given to only the most credit-worthy homebuyers. What that means is that the rate is only available to those whose credit scores are high. High scores indicate high levels of responsibility, making the borrower a better candidate for a loan.

So if you want the best interest rate, take good care of your credit.

courtesy of:  http://realtytimes.com/consumeradvice/mortgageadvice1

 

Leading Economic Indicators, July 2015

August 31, 2015 — The USD Burnham-Moores Center for Real Estate’s Index of Leading Economic Indicators for San Diego County fell 0.4 percent in July. Five of the six components in the Index were down, led by big drops in initial claims for unemployment insurance and help wanted advertising. Down more moderately was consumer confidence and the outlook for the national economy. Building permits were also negative, but only slightly so. The only positive component was local stock prices, which were up strongly in July.

July’s decrease broke a string of thirteen consecutive monthly increases in the USD Index. Although the increase in the Index had slowed in recent months, the decline was unexpected as a couple of recently strong components (building permits and the outlook for the national economy) turned negative. Despite the drop and despite concern that five of the six components were negative, the outlook for positive growth in the local economy remains unchanged for now. Economists look for three consecutive changes in a leading index as a signal of a turning point in an economy, so the months ahead are critical. The numbers for the local economy remain good at this moment, with the unemployment rate at 5 percent and year-over-year job growth approaching 50,000. But there is concern about the deterioration of the labor market components in the Index (see below), and these need to be watched carefully in the months ahead, particularly in light of the recently announced layoffs at Qualcomm.

Index of Leading Economic Indicators The index for San Diego County that includes the components listed below (July) Source: USD Burnham-Moores Center for Real Estate	-0.4%
Building Permits Residential units authorized by building permits in San Diego County (July) Source: U.S. Census Bureau	-0.09%
Unemployment Insurance Initial claims for unemployment insurance in San Diego County, inverted (July) Source: Employment Development Department	-1.38%
Stock Prices San Diego Stock Exchange Index (July) Source: San Diego Daily Transcript	+1.23%
Consumer Confidence An index of consumer confidence in San Diego County , estimated (July) Source: The Conference Board	-0.51%
Help Wanted Advertising An index of online help wanted advertising in San Diego (July) Source: The Conference Board	-1.03%
National Economy Index of Leading Economic Indicators (July) Source: The Conference Board	-0.48%

Highlights:  Although the decline in residential units authorized by building permits was minor, it broke a string of six consecutive monthly increases in the component, with all six of those increases being significant. This drop was due to permits for only 207 multi-family units being authorized in July, which is the lowest number for any month this year. . . After turning negative for the first time in months in June, both labor market components accelerated their moves to the downside in July. Initial claims for unemployment insurance jumped above the 16,000 mark for the first time since last August, while help wanted advertising hit its lowest level since October. This has not been reflected yet in the local labor market, where seasonally adjusted local unemployment rate was 5.0 percent in July. This was up compared to the 4.8 percent rate in June but down a lot from the 6.5 percent rate in July 2014. . . Local stock prices did well in July, matching the performance of the broader market averages. Local stocks had run counter to the broader averages the last two months. With the recent turmoil in the markets, though, this component is likely to turn negative for August. . . Sentiment among consumers continues to fall, with local consumer confidence dropping for the third consecutive month, with the trend being more negative with each month. . . The national Index of Leading Economic Indicators dropped for the first time since February. As was the case with building permits, the drop came even though the component had been up strongly in recent months. Similar to the local Index, it remains to be seen whether this is a one month aberration or whether this signals a negative turning point for the national economy. GDP growth for the second quarter was strong, with the “second” estimate coming in at a higher than expected 3.7 percent annualized rate. This compares to the “advance” estimate of 2.3 percent and a growth rate of 0.6 percent in the first quarter.

July’s increase puts the USD Index of Leading Economic Indicators for San Diego County at 139.6, down from June’s reading of 140.1. There were revisions in the previously reported values of the Index for March and April and in the changes in the Index for March and May.

          Index      % Change

2014   

JUL     128.0           +0.3

AUG    128.3           +0.3

SEP     129.0           +0.5

OCT    129.7           +0.5

NOV    131.4           +1.3

DEC    132.4           +0.7

2015  

JAN     134.2           +1.4

FEB     135.8           +1.2

MAR    137.7           +1.4

APR    138.9           +0.8

MAY    139.6           +0.5

JUN     140.1           +0.4

JUL     139.6         -0.4

For more information on the University of San Diego’s Index of Leading Economic Indicators, please contact:

Professor Alan Gin                             TEL: (858) 603-3873

School of Business Administration       FAX: (858) 260-4891

University of San Diego                 E-mail: agin@sandiego.edu

5998 Alcalá Park                             Website: http://www.sandiego.edu/~agin/usdlei

San Diego, CA 92110                        Twitter: @alanginusdsba

 

 

Consumer Reports: CAR INSURANCE SECRETS

THE TRUTH ABOUT CAR INSURANCE

Our exclusive data analysis of more than 2 billion car insurance price quotes across every U.S. ZIP code exposes what insurers don’t want you to know:  That how well you drive may have little to do with how much you pay.

You know Flo. She’s the white-aproned pitchwoman with the goofy charm who says that you can save more than $500 by switching to Progressive car insurance. Or you might get other discounts by bundling your insurance together or by naming your own price to fit your budget.

You might reasonably conclude from the ads that you’re in for some pretty sweet savings. But Consumer Reports compared what five national insurers would charge sample adult drivers in states where they are all market leaders. And we found that Progressive was actually the second most expensive, on average, with an annual premium that was $597 higher than the lowest, from USAA.

Say it ain’t so, Flo!

What’s the big secret?

Consumer Reports believes that knowledge about the going rate for any product or service is a fundamental consumer right. That’s why we embarked on a comprehensive project spanning two years, in which we analyzed more than 2 billion car insurance price quotes from more than 700 companies with the greatest share of customers in all 33,419 general U.S. ZIP codes.

What we found is that behind the rate quotes is a pricing process that judges you less on driving habits and increasingly on socioeconomic factors. These include your credit history, whether you use department-store or bank credit cards, and even your TV provider. Those measures are then used in confidential and often confounding scoring algorithms. And thanks to the availability of Big Data, companies have a lot more information to dig into.

You’re legally obligated to buy car insurance if you want to drive (except in New Hampshire), yet the business thrives on withholding critical information from customers. “Pricing transparency is one of the most powerful money-saving tools consumers can have when it comes to car insurance,” says Norma Garcia, senior attorney and manager of the financial services program at Consumers Union, the policy and advocacy arm of Consumer Reports, which has fought for car insurance protections since the 1980s.

Which Insurers Charge More or Less?

Complexity and lack of transparency in car insurance pricing keep consumers from knowing which car insurer charges a lot and which one charges a little. Here’s how five big national insurers stacked up for male and female single drivers in our study.

ALLSTATE   $1,570

Progressive  $1,414

Geico               $1,177

State farm     $1,147

USAA               $817

New-customer rate for eight male and female single drivers ages 25, 35, 65, and 75 with excellent credit and clean driving record in AK, AL, AR, AZ, CO, CT, DE, FL, GA, HI, KY, LA, ME, NH, NM, NV, NY, SC, TN, TX, UT, VA, and WA, the states where all five companies are market leaders.

It’s time for truth in car insurance

The industry is regulated at the state level, which is why pricing is literally all over the map. “That means bringing the fight to the state insurance regulators and lawmakers,” Garcia says. Some states tried to keep the marketplace fair by requiring insurers to file their pricing formulas with regulators, who would then ensure that prices weren’t excessive or discriminatory.

But over the past 15 years, insurers have made pricing considerably more complicated and confusing. As a result, “there is a complete lack of transparency,” says Birny Birnbaum, executive director of the Center for Economic Justice in Texas. Those new scoring models—though hidden from the public—are available to regulators on the condition they remain confidential. But because they’re so complex, “the regulators don’t have a prayer of being able to monitor them deeply,” Birnbaum says.

It’s about time we got a better deal from the car insurance industry. Our investigation illuminates some of the worst practices by demonstrating the real cost to consumers in dollars and cents. We also highlight the companies that are offering fair deals, and we help you steer clear of insurers whose numbers just don’t add up. But most important, we want you to join forces with us to demand that insurers—and the regulators charged with watching them on our behalf—adopt price-setting practices that are more meaningfully tethered to how you drive, not to who they think you are.

THE SECRET SCORE BEHIND YOUR RATES

You’ve heard of the FICO credit score? Meet the version insurers use to figure how much they can charge you for a policy—a score they have no legal obligation to show you.

Consumers are kept in the dark

Because insurance companies are under no obligation to tell you what score they have cooked up for you, you have no idea whether you have a halo over your head or a bull’s-eye on your back for a price increase.

Car insurers didn’t use credit scores until the mid 1990s. That’s when several of them, working with the company that created the FICO score, started testing the theory that the scores might help to predict claim losses. They kept what they were doing hush-hush. By 2006, almost every insurer was using credit scores to set prices. But two-thirds of consumers surveyed by the Government Accountability Office at about the same time said they had no idea that their credit could affect what they paid for insurance. Even today, insurers don’t advertise that fact. They usually won’t tell you what your score is; they don’t have to. If a sudden drop in your score causes them to raise your rates or cancel your policy, you’ll receive a so-called adverse action notice. But those notices “provide only cryptic information that’s of limited use,” says Norma Garcia, senior attorney and manager of the financial services program at Consumers Union, the advocacy arm of Consumer Reports.

California, Hawaii, and Massachusetts are the only states that prohibit insurers from using credit scores to set prices. In those states, insurers base premiums largely on a consumer’s driving record, the number of miles driven per year, and other factors. According to a 50-state study of insurance regulations by the Consumer Federation of America in 2013, California’s pricing practices, enacted as part of Proposition 103 in 1988, saved $8,625 per family during those 25 years.

courtesy of:  http://www.consumerreports.org/cro/car-insurance/auto-insurance-special-report/index.htm

Common Myths About Credit Scores

1.  Your credit score drops if you inquire about your credit. That is called a “soft pull” and has NO AFFECT. Inquiries by lenders could slightly lower your score.

2.  You should close old or inactive accounts to help your score. This could shorten the measured duration of your credit history. BAD MOVE.

3.  Paying off a negative record means that it is taken off your record. FALSE, it normally stays on seven years.

4.  Co-signing doesn’t mean that you are responsible for the account. This is FALSE.

5.  Making on-time rental, utility and cell phone payments helps the credit score.  Not at this time as they are not considered; a bill has been submitted in Congress, but it is not moving.

6.  Your credit score reflects changes or trends in your payment behavior. Credit scores are only a moment-in-time glimpse at consumer risk.

These answers are from an article in a California Assoc. of Realtor’s publication.

courtesy of:  Duane Gomer Newsletter

7 Tips For Improving Your Credit

Here’s how to clean up your credit so you get the least-expensive home loan possible.  Getting the loan that suits your situation at the best possible price and terms makes homebuying easier and more affordable.  Here are seven ways to boost your credit score so you can do just that.
1. Know your credit score
Credit scores range from 300 to 850, and the higher, the better.  They’re based on whether you’ve paid personal loans, car loans, credit cards, and other debt in full and on time in the past. You’ll need a score of at least 620 to qualify for a home loan and 740 to get the best interest rates and terms.
You’re entitled to a free copy of your credit report annually  from each of the major credit-reporting bureaus, Equifax, Experian, and TransUnion. Access all three versions of your credit report at www.annualcreditreport.com. Review them to ensure the information is accurate.
2. Correct errors on your credit report
If you find mistakes on your credit report, write a letter to the credit-reporting agency explaining why you believe there’s an error.  Send documents that support your case, and ask that the error be corrected or removed. Also write to the company, or debt collector, that reported the incorrect information to dispute the information, and ask to be copied on any materials sent to credit-reporting agencies.
3. Pay every bill on time
You may be surprised at the damage even a few late payments will have on your credit score.  The easiest way to make a big difference in your credit score without altering your spending habits is to diligently pay all your bills on time. You’ll also save money because you’ll keep the money you’ve been spending on late fees. Credit card or mortgage companies probably won’t report minor late payments, those less than 30 days overdue, but you’ll still have to pay late fees.
4. Use credit carefully
Another good way to boost your credit score is to pay your credit card bills in full every month.  If you can’t do that, pay as much over your required minimum payment as possible to begin whittling away the debt. Stop using your credit cards to keep your balances from increasing, and transfer balances from high-interest credit cards to lower-interest cards.
5. Take care with the length of your credit
Credit rating agencies also consider the length of your credit history.  If you’ve had a credit card for a long time and managed it responsibly, that works in your favor. However, opening several new credit cards at once can lower the average age of your accounts, which pushes down your score. Likewise, closing credit card accounts lowers your available credit, so keep credit cards open even if you’re not using them.
6. Don’t use all the credit you’re offered
Credit scores are also based on how much credit you use compared with how much you’re offered.  Using $1,000 of available credit will give you a lower score than having $1,000 of available credit and using $100 of it. Occasionally opening new lines of credit can boost your available credit, which also affects your score positively.
7. Be patient
It can take time for your credit score to climb once you’ve begun working to improve it.  Keep at it because the more distance you put between your spotty payment history and your current good payment record, the less damage you’ll do to your credit score.

courtesy of:  http://www.clientdirect.net/newsEdit.asp

CFPB To Delay Effective Date of New Mortgage Loan Docs

Slated to begin August 1, 2015, two new forms, a Loan Estimate and a Closing Disclosure, will replace the HUD-1 Settlement Statement, the Good Faith Estimate, and the Truth-in-Lending disclosure form.

“The CFPB will be issuing a proposed amendment to delay the effective date of the rule until October 1, 2015. We made this decision to correct an administrative error that we just discovered in meeting the requirements under federal law, which would have delayed the effective date of the rule by two weeks,” Cordary said.

“We further believe that the additional time included in the proposed effective date would better accommodate the interests of the many consumers and providers whose families will be busy with the transition to the new school year at that time.”

courtesy of:  RealtorPeg, https://realtorpegsdblog.wordpress.com/

& Ivan Solis, Jr. Sr. Sales Executive, Title365,  Ivan.Solis@Title365.com, 619.804.9000

Mortage Loan Documents To Change August 1st

On August 1, 2015, loan documents to homebuyers are going to be simpler and easier to understand.  Two new forms, a Loan Estimate and a Closing Disclosure, will replace the HUD-1 Settlement Statement, the Good Faith Estimate, and the Truth-in-Lending disclosure form.

The purpose of the new forms is to simplify closing information and make it simpler for consumers to compare their estimated costs to final costs.

Created by the Consumer Financial Protection Bureau  [CFPB] with input from consumers and industry groups such as the NAR, the new forms will hold lenders to three-day deadlines so that consumers will have the information they need well before closing.

The three-day rule applies to both the Loan Estimate and the Closing Disclosure. Buyers should receive the former three days after applying for a loan and the latter three days before closing. Buyers should take this time to look carefully for any changes between the Loan Estimate and the Closing Disclosure.

Consumers will have a more transparent experience, including less obfuscating jargon and greater clarity concerning closing costs. On the new forms, the interest rate, monthly payments, and the total closing costs will be clearly presented on the first page, making it easier to compare mortgage loans and choose the one that is right for them.

Important information will also be highlighted, including the costs of taxes and insurance and how interest rates and payments may change in the future. This information will help consumers decide whether they can afford the mortgage loan and the home, now and in the future.

The new forms also warn consumers about features they may want to avoid, like penalties for paying off the loan early or increases to the mortgage loan balance even if payments are made on time.

Consumers will appreciate that the first pages of the new Loan Estimate and the new Closing Disclosure look the same, so they can more easily compare costs. If discrepancies are found, consumers can contact their real estate agents or their lenders for more information.

courtesy of:  http://realtytimes.com/consumeradvice/mortgageadvice1/

5 Home Projects Only a Professional Should Do

It’s easy for homeowners to get caught up in the world of Pinterest and do-it-yourself blogs. While unique, custom projects can be a great way to personalize or spruce up your home, some projects are better left to professional contractors. Next time a friend or client has a brilliant idea to attempt one of these projects on their own, let them know why some things are best when left in the hands of pros.

1. Tree Removal

Whether it’s cutting down an overgrown tree or digging up a giant stump, this project can be an accident waiting to happen, especially if the tree is close to your house. Working from a height of 10 or 15 feet with large power tools can be dangerous enough, but add the factor of falling branches, and the risk of injury or damage to your car, house, or telephone lines increases even more. Removing a stump can be risky, too, as roots growing close to water or electrical pipes can cause serious damage as they are pulled up or moved.

2. Electrical and Plumbing Work

Not only can messing up electrical work in your home create much more serious issues, you also generally need a permit and inspection to do this kind of work. Bigger plumbing problems and projects like installing a shower or sink should only be attempted by professionals. Incorrect installation or repair can lead to damaged pipes or waterlogged walls, along with other expensive issues.

3. Pool Repair and Installation

Both above and in-ground pools are difficult to repair without special tools and products. While simple projects around the pool are fine to do yourself, repairing cracks in the foundation or remodeling your pool is something that a professional is better equipped for.

The same goes for pool installation. You may think you are saving a lot of money by installing a swimming pool by yourself, but as PoolProducts.com cautions, installing a vinyl or fiberglass pool is a very big job. A task of this magnitude requires some serious homework before you decide to it take on, plus you may have to rent or buy large construction equipment, or even hire help to do the job right. Measurements must be precise, permits and inspections must be passed, and you must consider how the ground and concrete will settle and shift over time.

4. Removing a Wall

It may seem like a good idea to knock down a small wall in your house to open up the kitchen or create a bigger living room, but it isn’t as easy as it may appear. If the wall is load-bearing or supports any part of the house, or if it holds electrical or plumbing, you could cause serious damage to the structure of your home.

Popular Mechanics recommends consulting with a building engineer before attempting to knock down a wall. A building engineer can give you advice on the best way to remove the wall and let you know if any special permits are needed.

5. Flooring

Homeowners might want to call a professional if they plan to rip up carpet or lay new tile. You might not know what’s underneath your carpet and if the subfloor is damaged or rotten, you could wind up spending thousands in extra costs just to repair it. Laying tile is another delicate and very precise project—if the tiles aren’t cut perfectly, laid completely straight, or if one of them cracks, you may have to start all over. If you’re not experienced in flooring, it may be best to leave it to a flooring expert.

courtesy of:  http://realtytimes.com/consumeradvice/homeownersadvice1/item/32023-20141218-5-home-projects-only-a-professional-should-do

8 Steps To Take Before Buying Your First Home

A home will likely be the biggest purchase a person ever makes — along with being the most daunting purchase.

But the good news is most of the problems homebuyers face have a quick solution, if completed before trying to get a mortgage.

In a recent interview, Katie Miller, vice president of mortgage lending with Navy Federal Credit Union, encouraged potential homebuyers to have the conversation with a loan officer about what they can work out.

To help overcome the imitating homebuying process, the Independent Community Bankers of America offered the following eight suggestions for perspective first-time homebuyers.

Follow this and the entire homebuying process will go much smoother:

1. Discuss your finances with your bank before you begin looking for a home. It is important to stay within your means when purchasing a house.
2. Gather and organize paperwork and documents. Items you should have readily available include paycheck stubs, W2 forms, tax returns and bank and investment statements for the last two years.
3. Know your monthly income and budget, including how much you spend on rent, utilities, entertainment, clothing, food and transportation.
4. Check your credit report so you are aware of what your current credit score is before applying for a loan. Credit reporting agencies must give you one free report annually.
5. Maxing out credit cards or falling behind on other loan payments could create issues when applying for a mortgage. Keep tabs on your spending habits before applying for a mortgage. Once you apply for a mortgage, don’t take on more big debt until it closes.
6. Work with your banker to figure out how much you can borrow and which mortgage product is right for you. “Your local community banker can explain available mortgage options- including rate adjustments, fees and other loan features – so you are prepared for the loan closing and not surprised down the road,” the ICBA states.
7. Learn what current mortgage rates are. Bankers are there to help you understand how that translates into monthly mortgage payments.
8. Check with your state, city and county government agencies for special first-time-homebuyer loan or grant programs available to assist with down payment and closing costs.

READ MORE —>  http://www.housingwire.com/articles/

Existing Home Sales to Finish 2015 at Record Level

Existing home sales are expected to finish the year at their highest level since 2006, the National Association of Realtors’ economic forecast forum revealed at its 2015 Legislative Meetings & Trade Expo.

However, accelerating price growth and rising mortgage rates have the potential to change this.

Both Lawrence Yun, chief economist of NAR, and Robert Dietz, vice president of tax and market analysis at the National Association of Home Builders, shared their perspective on what’s going on in the housing market.

In the most recent existing-homes sales report, sales surged to their highest annual rate in 18 months, showing a promising beginning to the spring homebuying season.

read more —>  http://www.housingwire.com/articles/33912

San Diego Leading Economic Indicators, April 2015

Note:   The tentative release date of next month’s report is June 30.

The USD Burnham-Moores Center for Real Estate’s Index of Leading Economic Indicators for San Diego County rose 0.9 percent in April.  Once again, all six components were positive.  Building permits led the move, followed by strong gains in help wanted advertising and the outlook for the national economy.  There were smaller increases in initial claims for unemployment insurance, consumer confidence, and local stock prices.

With April’s increase, the USD Index has now increased for 11 months in a row.  This would have been the fourth consecutive month where all six components of the Index were up, but a revision of the national Index of Leading economy indicators for February pushed that component into the negative column.  This was also the first month in 2015 where the gain was less than the significant one percent level, although it was very close.  The outlook continues to be for strong growth in the local economy for the rest of 2015 and at least through the early part of 2016.  Recent employment reports have put the year-over-year increase in wage and salary employment at over 40,000, which would be the best annual gain since 2000.  The strongest sectors of the economy at this point are professional, scientific, and technical services (+8,200 jobs year-over-year), leisure and hospitality (+6,500), and health care (+4,900).  The first is particularly important for San Diego because it includes research and development jobs in science and technology that are high paying and important to the local economy.

Index of Leading Economic Indicators   The index for San Diego County that includes the components listed below (April)Source:  USD Burnham-Moores Center for Real Estate	+0.9%
Building Permits   Residential units authorized by building permits in San Diego County (April)Source:  U.S. Census Bureau	+1.89%
Unemployment Insurance   Initial claims for unemployment insurance in San Diego County, inverted (April)Source:  Employment Development Department	+0.65%
Stock Prices   San Diego Stock Exchange Index (April)Source:  San Diego Daily Transcript	+0.14%
Consumer Confidence   An index of consumer confidence in San Diego County, estimated (April)Source: The Conference Board	+0.25%
Help Wanted Advertising   An index of online help wanted advertising in San Diego (April)Source: The Conference Board	+1.04%
National Economy   Index of Leading Economic Indicators (April)Source: The Conference Board	+1.29%

Highlights:  A huge surge in multi-family units pushed residential units authorized by building permits to its highest level since March of last year.  A total of 991 units were authorized in April, of which 719 were multi-family units. . . The labor market variables remain strong, although both initial claims for unemployment insurance and help wanted advertising were less positive than they have been in recent months.  The net result was that the seasonally adjusted local unemployment rate was 5.1 percent in April, which was unchanged from March but down from 6.4 percent in April 2014.  The non-seasonally adjusted rate was 4.9 percent, making April the first month since April 2008 where the local unemployment rate was less than 5 percent. . . Although the gains have not been spectacular, consumer confidence has now risen for 15 months in a row, which is the longest current streak any of the six components. . . Local stock prices were lower at the end of April than at the beginning, but the USD Index uses the average of prices for the entire month as the point of comparison.  Although local stocks faltered at the end of the month, they were strong enough in the middle April to lead this component to a modest gain . . . The downward revision in February broke a run of 13 straight increases in the national Index of Leading Economic Indicators. But there was a solid gain in March and a strong increase in April, so the outlook for the national economy remains positive.  There was a hiccup in the first quarter though, with the “advance” estimate of the GDP growth rate for that quarter coming in at a disappointing 0.2 annualized rate.  This compares to growth rates of 4.6 percent, 5.0 percent, and 2.2 percent for the second, third, and fourth quarters of 2014 respectively.  It is still an improvement over the first quarter of last year, when the economy shrank at a 2.1 percent annualized rate.

March’s increase puts the USD Index of Leading Economic Indicators for San Diego County at 138.9, up from March’s reading of 137.7.  Revisions in the national Index of Leading Economic Indicators for November, December, February, and March affected the previously reported changes for those months.  For the previously reported values for the Index and for the individual components, please visit the Website address given below.

For more information on the University of San Diego’s Index of Leading Economic Indicators, please contact:

Professor Alan Gin                           TEL:  (858) 603-3873

School of Business Administration     FAX:  (858) 260-4891

University of San Diego                   E-mail: agin@sandiego.edu

5998 Alcalá Park                                     Website: http://www.sandiego.edu/~agin/usdlei

San Diego, CA 92110                               Twitter:  @alanginusdsba

Small Home Upgrades Offer Big Returns

A recent release by the Appraisal Institute advises homeowners to choose upgrades instead of major remodeling projects to see the greatest potential return on investment.

“In general, simpler, less expensive projects have the best cost-to-value ratio,” says Appraisal Institute President M. Lance Coyle, MAI, SRA. “Homeowners should invest in projects that are most likely to preserve the value of their homes.”

According to Remodeling magazine’s most recent Cost vs. Value report, only five projects saw their cost-to-value ratios rise over the past year: roofing replacement, garage door replacement, 20-gauge steel entry door replacement, vinyl siding replacement and fiberglass entry door replacement. Among projects with the biggest declines were two-story additions, composite deck additions, master suite and kitchen remodels.

Other minor projects with potential major payoffs, says the Cost vs. Value report, are mid-range and upscale garage door replacements, manufactured stone veneer, mid-range window replacements and minor kitchen remodels.

“It’s possible that consumers won’t be able to recoup the cost of the upgrade when the home is sold, so it’s important to meet, not exceed, what’s standard for the neighborhood, and to also consider expected length of time in the property,” Coyle says.

Making routine home repairs is essential to maintaining a home’s value. A house that has been well-maintained will likely have a higher value than a similar house that is in disrepair, Coyle says. For example, replacing worn out trim boards may in certain situations not add any additional value to the home. However, the home’s value is preserved when compared to similar homes in the area without worn-out trim boards.

For an unbiased analysis of what their home would be worth both before and after an improvement project, a homeowner can work with a qualified real estate appraiser to conduct a feasibility study. During this study, the appraiser will analyze the homeowner’s property, weigh the cost of rehabilitation and provide an estimate of the property’s value before and after the improvement.

Some green and energy-efficient renovations – such as adding Energy Star appliances and extra insulation – are likely to pay the homeowner back in lowered utility bills relatively quickly. Lower utility costs are also a draw for potential homebuyers. Use that to your client’s advantage.

Overall, making minor home improvements increases the likelihood that home sellers will get the best return on their investment. Research similar houses in the area to decide which upgrades will best benefit their home’s value.

courtesy of:  http://blog.realestatebook.com/2015/05/14/minor-home-improvements-for-the-best-return/

Paying Off Your Mortgage?

Written by Benny L. Kass

Question: 

Our condominium unit is now worth approximately $350,000, and we owe only $25,000 on our mortgage. We are from the old school, and want to own this property free and clear. We have the money, and are considering paying off the loan. Is this a good idea, and if so, how do we go about making sure that it is done correctly?

Answer: 

The old school is a reference to our parents (or grandparents) who lived through the recession in the 1930s. Because the stock market crashed, and lots of people were unemployed, those who owned their home free and clear of any debt at least had a roof over their head and did not have to sleep in the streets or under the bridges.

There are many people today with this same mind-set, and while I personally disagree with this concept, I certainly respect and understand their views.

Let me play devil’s advocate. You have $325,000 in dead equity. This is the difference between what your property is worth and what you currently owe.

Appreciation is not dependent on whether you have a mortgage or on how much you owe on your home. The house will increase (or decrease) in value regardless of whether you have a mortgage. Thus, in my opinion, the money you have in your property — which we call “equity” –is just sitting there; it is “dead equity”.

You now want to take $25,000 out of your savings and pay off the loan. Why? You are getting some small tax benefit from the interest deductions despite the fact that currently you are not getting a decent rate of return on your investments. Other than the satisfaction of owning your house free and clear, I do not see any benefits by paying off that mortgage.

In fact, I would recommend that you consider refinancing. Interest rates today are comfortably low, with the national average for a fixed 30 year loan hovering around 4 percent. You could, for example borrow $100,000, pay off your outstanding debt, and after paying closing and settlement costs walk away — tax free — with approximately $73,000. The monthly mortgage payment on this loan (at 4 percent for thirty years ) is 477.42 — which I suspect is probably close to what you are currently paying. And because this is a new mortgage, your interest deductions would be larger.

Many readers will challenge me. They will point out that it makes no sense to pay 4 percent on a mortgage and today only be able to get less than one percent interest by putting the refinanced money in a savings account.

I do not disagree with this. But over the years, I have had too many clients from the old school who are “house rich and cash poor”. They own their house free and clear but do not have sufficient money to pay the increasing real estate taxes or the insurance premiums. I firmly believe that everyone should have money in the bank — even if it does not pay a lot of interest — for that rainy day.

If you still want to pay off your mortgage, here’s what you should do:

First, make absolutely sure there is no prepayment penalty attached to your loan. Because your loan is so low — and you have had the mortgage for a number of years — I doubt that there is such a penalty, but you have to confirm this. When you first obtained that loan, you signed two important documents: a promissory note and the Deed of Trust (also known as a mortgage). The terms and conditions of your loan — including any prepayment penalty — will be spelled out in those documents. Read them carefully. If you have trouble understanding the legal language, discuss the situation with your lender or your lawyer.

You should send a formal written request to your lender asking for a payoff statement, and advise the lender of the exact date that you expect to send in your payment. The lender will advise you of the outstanding balance, and will also provide you with the “per diem” interest.

Mortgage interest is calculated in arrears. So when you make your February payment, for example, that will pay the principal and interest that accrued during the month of January. For most loans — other than currently loans insured by the Federal Housing Administration — you can pay off your loan at any time. Example: Assuming you made the February payment, the payoff statement will indicate the principal balance as of January 31, and it will also tell you what the daily interest will be. Since you plan to pay it off on February 23, multiply the per diem interest by 23, and add this amount to the outstanding balance. (NOTE: effective January 21, 2015, the FHA will end the practice of requiring payment to the end of the month; in my example,instead of paying only 23 additional days, you would have to pay the full 28 extra days — or 29 if a leap year.)

Keep in mind, however, that interest will continue to accrue to the time the lender actually receives your check. So I would add 10 additional days of interest, just to be on the safe side. All legitimate mortgage lenders will refund any excess payments to you.

What about any escrows that your lender is holding to pay real estate taxes and insurance? The payoff statement should advise you of the amount being held in escrow. Some lenders will deduct this amount from the outstanding balance; other lenders will send you a separate check for this amount after you make your final payment.

And don’t forget to advise both your real estate tax office and your insurance company that you will now be responsible for these payments. I recently represented a lawyer who paid off his loan, but forgot to advise the taxing authority. It was only when he learned that his house was about to go to tax sale that he was able to resolve the situation. And equally important, if you are making automatic mortgage payments, please remember to tell the bank to stop.

When you first got your loan, the Deed of Trust was recorded among the land records in the jurisdiction where your property is located. Now that you have paid off the loan, you want to make sure that it will be released from land records. Some jurisdictions require that a Certificate of Satisfaction be recorded, while others use a Deed of Trust Release.

Your lender will either arrange to record the release or will send it to you for recording. Either way, you want absolute confirmation that the release has been accomplished. This means that you want proof of recording, which you can get from your local recorder of deeds.

Finally, your lender should return the original Promissory Note, marked “paid and cancelled”. The note is known in law as a “bearer instrument”. This means that anyone who has that document could claim that you still owe the money. While this is not a major problem, since you will have proof that you paid off the note, why ask for trouble? Make sure that the lender returns the note to you.

courtesy of:  http://realtytimes.com/consumeradvice/

Real Estate Likely to Ride a 3-Year Wave

The real estate industry is expected to strengthen this year and continue to get stronger through 2017, according to a new report released from the Urban Land Institute Center for Capital Markets and Real Estate, which is based on a survey of the industry’s top economists and analysts.

Survey respondents said that the residential, single-family housing sector remains in recovery mode and economists predict that housing starts will rise from 647,000 in 2014 to 700,000 in 2015; to 815,000 in 2016; and 900,000 by the end of 2017.

Economists predict that existing home prices will rise through 2017 — rising 5 percent this year; another 4 percent in 2016; and by 4 percent in 2017.

“In summary, almost all U.S. real estate participants would be very pleased if the future unfolded as predicted by the ULI consensus forecast,” says ULI leader William Maher, director of North American strategy for LaSalle Investment Management in Baltimore. “The forecast represents almost the perfect combination of strong economic and property market fundamentals, combined with an orderly wind-down of monetary stimulus.”

Although an economic downturn could throw off these predictions, as well as interest rate spikes or oversupplies, “real estate pros predict three more years of smooth sailing for U.S. real estate,” Maher adds.

Survey respondents were also upbeat with their forecasts for the commercial market, including:

• Office sector: Respondents expect rental rates in office space to rise 4 percent this year, 4.1 percent in 2016, and 3.5 percent in 2017.
• Apartments: Respondents expect rental rates continue to push upward, rising by 3.5 percent in 2015, 3 percent in 2016, and 2.7 percent in 2017.
• Retail: Analysts expect that rental rates in the retail sector to rise by 2 percent in 2015, 3 percent in 2016, and 2.9 percent in 2017.
• Industrial/warehouse: Analysts expect rental rates in the warehouse sector to rise by 4 percent this year, 3.8 percent in 2016, and 3.1 percent in 2017.

courtesy of:  http://realtormag.realtor.org/daily-news/