TEAM HEDGES at Prime Lending

200 Year Historical Mortgage Rates!

2012-02-17T12:07:00.000-05:00

We hope these charts provide food for thought for anyone wondering if now is a good time to get off the fence regarding a home purchase or refinance.

Click Here for the 30 Year FHLMC Rates On 30-Year Fixed-Rate Mortgage Chart.

Click Here for the 200 Year Historical Rates On 30-Year Fixed-Rate Mortgage Chart.

Please give us a call or email if there's anything we can do for you!

Jean Hedges

Senior Loan Officer

PrimeLending, A PlainsCapital Company

5400 Glenwood Ave., Suite 215

Raleigh, NC 27612

Phone: (919) 334-9030

Mobile: (919) 961-6915

Fax: (866) 460-7667

Market Update For the week of February 13, 2012

2012-02-13T09:48:00.002-05:00

QUOTE OF THE WEEK..."People can alter their lives by altering their attitudes." -- William James

INFO THAT HITS US WHERE WE LIVE... People's attitudes should surely be altered by new data from the National Association of Home Builders (NAHB). Their survey released on Thursday revealed four record highs hit by home building in 2011. The average size of new homes bumped up to a record 2,522 square feet, a record-high 42% of new homes had at least four bedrooms, 28% had at least three bathrooms and 30% included finished basements, all numbers up substantially over 2010. Countering this, there were a record low 429,000 single-family housing starts for the year.

But there's hope. The NAHB's chief economist forecast a 16% increase for new-home sales and single-family starts for 2012. He cited NAHB estimates of a pent-up demand for 2 million homes coming from households that are doubled-up or waiting to buy a home. Another NAHB sponsored survey revealed 78% of Americans likely to vote in the presidential election said owning a home was one of the most important things in their lives. They feel homeownership is about family and remains part of the American dream. Freddie Mac's chief economist chimed in, "The desire for homeownership long-term is still there."

BUSINESS TIP OF THE WEEK... What about your business makes you happy... and unhappy? The answers can help you discover how to motivate yourself and persuade others, since happiness is the universal motivator.

>> Review of Last Week

IT'S ALL GREEK TO WALL STREET... As of last Friday, Greek politicians couldn't come to agreement with creditors on the latest bailout proposals. That was all investors needed to hear to start selling in earnest, sending stocks down for the week, ending five straight weeks of gains. Eurozone officials are threatening to withhold needed funds unless Greece agrees to austerity measures and signs them into law. The big prob? Political gridlock could take Greece closer to default, which might threaten U.S. financial institutions.

Over here, a light dose of economic data came in mixed, as usual. The Federal deficit for January unexpectedly dropped to $27.4 billion from $50 billion in December. But the Trade deficit ballooned to $48.8 billion. Initial weekly jobless claims dipped to 358,000, but continuing claims grew to 3.52 million. Finally, preliminary University of Michigan consumer sentiment for February fell to 72.5 from 75.0 the prior month.

For the week, the Dow ended down 0.5%, at 12801; the S&P 500 closed down 0.2%, at 1343; and the Nasdaq slipped 0.1%, to 2904.

Bonds saw heavy selling pressure early in the week, but those Greek default fears helped prices recover a bit on Friday. The FNMA 3.5% bond we watch ended the week down just .08, at $103.16. Following the prior week's better than expected jobs report, national average rates inched up for some types of mortgages in Freddie Mac's weekly survey. But mortgage rates overall remain historically low.

DID YOU KNOW?...This week's Producer Price Index (PPI) is an inflation indicator for the wholesale prices of a basket of raw materials and semi-finished goods (but not services). It's a leading indicator of consumer inflation.

>> This Week’s Forecast

HOUSING STARTS, PLUS RETAIL, MANUFACTURING, THE FED, INFLATION... We're back to a ton of economic data. Thursday's January Housing Starts will grab our attention, forecast up a smidge, and Building Permits, expected a bit down. January Retail Sales are expected up, both with and without autos. The several manufacturing reads -- Empire State, Industrial Production, Capacity Utilization and Philadelphia Fed -- should also inch up.

Wednesday's FOMC Minutes from the Fed's January 25 meeting might reveal more on why they want to extend exceptionally low interest rates til late 2014. The festivities end with PPI and CPI inflation reads, expected to remain within Fed targets.

>> The Week’s Economic Indicator Calendar

Weaker than expected economic data tends to send bond prices up and interest rates down, while positive data points to lower bond prices and rising loan rates.

Economic Calendar for the Week of Feb 13 – Feb 17

Date Time (ET) Release For Consensus Prior Impact

Tu Feb 14 08:30 Retail Sales Jan 0.8% 0.1% HIGH

Tu Feb 14 08:30 Retail Sales ex-auto Jan 0.5% -0.2% HIGH

Tu Feb 14 10:00 Business Inventories Dec 0.5% 0.3% Moderate

W Feb 15 08:30 Empire State Manufacturing Index Feb 14.0 13.5 Moderate

W Feb 15 09:15 Industrial Production Jan 0.6% 0.4% Moderate

W Feb 15 09:15 Capacity Utilization Jan 78.6% 78.1% Moderate

W Feb 15 10:30 Crude Inventories 2/11 NA 0.304M Moderate

W Feb 15 14:00 FOMC Minutes 1/25 NA NA HIGH

Th Feb 16 08:30 Initial Unemployment Claims 2/11 365K 358K Moderate

Th Feb 16 08:30 Continuing Unemployment Claims 2/4 3.505M 3.515M Moderate

Th Feb 16 08:30 Housing Starts Jan 670K 657K Moderate

Th Feb 16 08:30 Building Permits Jan 675K 679K Moderate

Th Feb 16 08:30 Producer Price Index (PPI) Jan 0.3% -0.1% Moderate

Th Feb 16 08:30 Core PPI Jan 0.1% 0.3% Moderate

Th Feb 16 10:00 Philadelphia Fed Manufacturing Index Feb 10.0 7.3 HIGH

F Feb 17 08:30 Consumer Price Index (CPI) Jan 0.3% 0.0% HIGH

F Feb 17 08:30 Core CPI Jan 0.2% 0.1% HIGH

F Feb 17 10:00 Leading Economic Indicators (LEI) Jan 0.5% 0.4% Moderate

>> Federal Reserve Watch

Forecasting Federal Reserve policy changes in coming months... On January 25, the Fed pledged to keep the Funds Rate extra low through late 2014. Economists expect no change near term. Note: In the lower chart, a 1% probability of change is a 99% certainty the rate will stay the same.

Current Fed Funds Rate: 0%–0.25%

After FOMC meeting on: Consensus

Mar 13 0%–0.25%

Apr 25 0%–0.25%

Jun 20 0%–0.25%

Probability of change from current policy:

After FOMC meeting on: Consensus

Mar 13 <1%

Apr 25 <1%

Jun 20 <1%

Market Update for the Week of January 30, 2012

2012-01-30T15:36:00.000-05:00

QUOTE OF THE WEEK..."Before everything else, getting ready is the secret of success." --Henry Ford

INFO THAT HITS US WHERE WE LIVE...Getting ready for a recovery could be the theme of last week's housing reports. Pending Home Sales, after hitting a 19-month high in November, dipped a bit for December, yet came in 5.6% above where they were a year ago. The National Association of Realtors chief economist observed, "Even with a modest decline, the preceding two months of contract activity are the highest in the past four years outside of the homebuyer tax credit period."

Thursday saw December New Home Sales drop 2.2%, to a lower-than-expected 307,000 annual rate. Yet sales remain in the narrow range they've occupied since May 2010. And the best news was that new home inventories dropped to 157,000, the lowest level on record, since 1963. Unsold new homes under construction and unsold completed new homes are at or near record lows. Experts say this is what's needed to get ready for a sustained housing recovery. Finally, the FHFA price index for homes bought with conforming mortgages was UP 1% in November.

BUSINESS TIP OF THE WEEK... Our motivation colors our work. People driven by money can appear self-serving. But people driven to do the best for their clients usually come off as effective and valuable.

>> Review of Last Week

UP AND DOWN... It was a week where investors couldn't decide if they felt positive or negative about the economy and the major market indexes reflected this, with two of them heading up for the week but the third one ending down. The big news? The Fed extended its pledge to hold interest rates exceptionally low -- from mid-2013 to late 2014. And for the first time, the FOMC set a specific inflation goal: 2%. Also for the first time, the Fed released the rate expectations of each member. The median showed no change this year or next and a hike to only 0.75% by the end of 2014.

Other good news came with Durable Goods Orders, up a better than expected 3% for December. Unfortunately, this was followed by initial jobless claims, up 21,000 for the week, to 377,000. Finally, the Advance GDP estimate for Q4 came in at a 2.8% annual rate. This was better than Q3, but less than expected. Economists were also disappointed that a large part of the increase was only due to an unexpected buildup in inventories.

For the week, the Dow ended down 0.5%, at 12661; the S&P 500 closed up 0.1%, at 1316; and the Nasdaq gained 1.1%, to 2817.

The Fed's announcement it will hold rates low even longer, plus their inflation target, did wonders for bonds. The FNMA 3.5% bond we watch ended the week UP 1.01, to $103.22. National average mortgage rates edged up a bit in Freddie Mac's weekly survey of conforming mortgages, though they're still at historically low levels. Experts put this to the improving housing market data.

DID YOU KNOW?...Tuesday's Employment Cost Index measures changes in wages, benefits and bonuses for a group of occupations. It's an inflation indicator because prices can go up with increased labor costs, unless offset by productivity gains.

>> This Week’s Forecast

INFLATION, MANUFACTURING, JANUARY JOBS... Hot buttons this week touch all the hot topics. Monday we see the Fed's favorite inflation measure, Core PCE Prices, expected to stay within the central bank's guidelines. The manufacturing sector gets covered in Tuesday's Chicago PMI, forecast down a trifle, but Wednesday's ISM Index is predicted up for the month.

The hottest of the hot data comes Friday, with the January Employment Report. The forecast is for a smaller gain in payrolls than last month's. Historically, as employment improves, it pulls housing along with it.

>> The Week’s Economic Indicator Calendar

Weaker than expected economic data tends to send bond prices up and interest rates down, while positive data points to lower bond prices and rising loan rates.

Economic Calendar for the Week of Jan 30 – Feb 3

Date Time (ET) Release For Consensus Prior Impact

M Jan 30 08:30 Personal Income Dec 0.4% 0.1% Moderate

M Jan 30 08:30 Personal Spending Dec 0.1% 0.1% HIGH

M Jan 30 08:30 Core PCE Prices Dec 0.2% 0.1% HIGH

Tu Jan 31 08:30 Employment Cost Index Q4 0.4% 0.3% HIGH

Tu Jan 31 09:45 Chicago PMI Jan 62.0 62.5 HIGH

Tu Jan 31 10:00 Consumer Confidence Jan 67.0 64.5 Moderate

W Feb 1 10:00 ISM Index Jan 54.7 53.9 HIGH

W Feb 1 10:30 Crude Inventories 1/28 NA NA Moderate

Th Feb 2 08:30 Initial Unemployment Claims 1/28 375K 377K Moderate

Th Feb 2 08:30 Continuing Unemployment Claims 1/21 3.525M 3.550M Moderate

Th Feb 2 08:30 Productivity-Prelim. Q4 0.6% 2.3% Moderate

F Feb 3 08:30 Average Workweek Jan 34.4 34.4 HIGH

F Feb 3 08:30 Hourly Earnings Jan 0.2% 0.2% HIGH

F Feb 37 08:30 Nonfarm Payrolls Jan 170K 200K HIGH

F Feb 3 08:30 Unemployment Rate Jan 8.5% 8.5% HIGH

F Feb 3 10:00 ISM Services Jan 53.1 52.6 Moderate

>> Federal Reserve Watch

Forecasting Federal Reserve policy changes in coming months... At last week's FOMC meeting, the Fed extended its goal of keeping the Funds Rate super low through late 2014. Note: In the lower chart, a 1% probability of change is a 99% certainty the rate will stay the same.

Current Fed Funds Rate: 0%–0.25%

After FOMC meeting on: Consensus

Mar 13 0%–0.25%

Apr 25 0%–0.25%

Jun 20 0%–0.25%

Probability of change from current policy:

After FOMC meeting on: Consensus

Mar 13 <1%

Apr 25 <1%

Jun 20 <1%

Market Update for the Week of January 23, 2012

2012-01-23T11:55:00.000-05:00

QUOTE OF THE WEEK..."Happiness is not a state to arrive at, but a manner of traveling." --Margaret Lee Runbeck
INFO THAT HITS US WHERE WE LIVE...Well, we can all make our way with a bit of a smile on our faces, courtesy of the latest Housing Starts numbers. At first blush, the December report seemed disappointing, down 4% for the month. But starts overall are UP 24.9% from a year ago and December's drop was all from multi-family starts, very volatile month-to-month. Single-family starts were UP 4.4% for the month and UP 11.6% for the year. No wonder the National Association of Home Builders confidence index went to 25, its highest reading since 2007.

For those who still couldn't put on a happy face, Friday's data should have done the trick. Existing Home Sales were UP 5% in December, their third consecutive gain, to their highest level since January 2011. The inventory of existing homes is down 21% from last year and the months' supply dropped to 6.2, the lowest level since April 2006. For all of 2011, sales of single-family homes, townhomes, condos and co-ops rose 1.7%, to 4.26 million units.

BUSINESS TIP OF THE WEEK... There are so many variables in business, you can't know exactly how you will reach your goal. So what matters most is your determination to get there.

>> Review of Last Week

HAPPY NEW YEAR SO FAR...All three major market indexes ended ahead again for the week, chalking up very nice gains for the very young year--the Dow UP 4.1%, the S&P 500 UP 4.6% and the Nasdaq UP 7.0% thus far. Investor sentiment is generally a good leading indicator for the economy, but the recovery is still slow and the economic reports continue to deliver mixed messages.
Industrial Production, up 0.4% in December, fell short of expectations. Yet two regional manufacturing indexes did better for the month: the Empire State and the Philadelphia Fed. On the inflation front, producer prices were down 0.1%, though Core prices excluding food and energy were up 0.3%. The Consumer Price Index was unchanged, but Core CPI went up 0.1%. The best news? Weekly Initial Unemployment Claims fell to 352,000, their lowest level since April 2008.
For the week, the Dow ended UP 2.4%, at 12720; the S&P 500 closed UP 2.0%, to 1315; and the Nasdaq gained 2.8%, to 2787.
With stocks rallying, heavy selling in the bond market sent prices southward. Investors were also calmed by hopes of a Greek debt deal, though that hasn't happened yet. The FNMA 3.5% bond we watch ended the week down .87 to $102.21. Freddie Mac's survey of conforming mortgages showed national average mortgage rates virtually unchanged, staying at record low levels for another week.

DID YOU KNOW?...This week's Advanced GDP number will be revised twice, with next month's Preliminary GDP and then Final GDP a month later. These revisions can impact financial markets.

>> This Week’s Forecast
PENDING HOME SALES, NEW HOME SALES, THE FED, THE GDP... This week isn't missing much in the way of interesting topics. December Pending Home Sales come Wednesday, forecast down a bit after a November gain. The Fed's FOMC Rate Decision shouldn't change anything, but for the first time, Fed member's outlooks on interest rates will be released. Following this will be Chairman Bernanke's press conference and that could be interesting.

December New Home Sales happen Thursday, projected to inch up a bit. Friday we get how the overall economy did in Q4, with the Advanced GDP estimate. Gross Domestic Product is expected to climb from an anemic 1.8% to a more acceptable 3.1%.

>> The Week’s Economic Indicator Calendar

Weaker than expected economic data tends to send bond prices up and interest rates down, while positive data points to lower bond prices and rising loan rates.

Economic Calendar for the Week of Jan 23 – Jan 27

Date Time (ET) Release For Consensus Prior Impact

W Jan 25 10:00 Pending Home Sales Dec -3.0% 7.3% Moderate

W Jan 25 10:30 Crude Inventories 1/21 NA -3.438M Moderate

W Jan 25 12:30 FOMC Rate Decision 1/25 0%-0.25% 0%-0.25% HIGH

Th Jan 26 08:30 Initial Unemployment Claims 1/21 375K 352K Moderate

Th Jan 26 08:30 Continuing Unemployment Claims 1/14 3.550M 3.432M Moderate

Th Jan 26 08:30 Durable Goods Orders Dec 2.0% 3.7% Moderate

Th Jan 26 10:00 New Home Sales Dec 322K 315K Moderate

Th Jan 26 10:00 Leading Economic Indicators (LEI) Dec 0.7% 0.5% Moderate

F Jan 27 08:30 GDP-Adv. Q4 3.1% 1.8% Moderate

F Jan 27 08:30 GDP Chain Deflator-Adv. Q4 1.5% 2.6% Moderate

F Jan 27 09:55 U. of Michigan Consumer Sentiment-Final Jan 74.2 74.0 Moderate

>> Federal Reserve Watch

Forecasting Federal Reserve policy changes in coming months... Virtually all the experts say the Fed Funds Rate will stay at its super low level coming out of this week's FOMC meeting. Note: In the lower chart, a 1% probability of change is a 99% certainty the rate will stay the same.

Current Fed Funds Rate: 0%–0.25%

After FOMC meeting on: Consensus

Jan 25 0%–0.25%

Mar 13 0%–0.25%

Apr 25 0%–0.25%

Probability of change from current policy:

After FOMC meeting on: Consensus

Jan 25 <1%

Mar 13 <1%

Apr 25 <1%

Market Update For the week of January 16, 2012

2012-01-16T10:53:00.002-05:00

QUOTE OF THE WEEK..."If you have to forecast, forecast often."--Edgar R. Fiedler

INFO THAT HITS US WHERE WE LIVE...Economist Fiedler, Assistant Treasury Secretary under Presidents Nixon and Ford, knew that wise forecasters give themselves lots of opportunities for revisions. This time of year, the focus is on forecasts and even though many will soon be revised, some are worth considering. The chairman of the Fisher Center for Real Estate at the University of California, Berkeley, feels home prices have bottomed and are increasing, though not rebounding, where there's strong job growth. But other economists anticipate a 5% decline in home prices over the next two years.

Several industry watchers expect mortgage rates to stay low in 2012, especially the first half of the year. But buyers and those looking to refinance shouldn't drag their feet. Freddie Mac's chief economist expects rates to rise at least somewhat during the second half of the year. Fannie Mae's chief economist thinks rates will stay flat most of the year, but may go up a tick the last quarter. And he's hopeful lenders will work with more buyers with good credit scores.

BUSINESS TIP OF THE WEEK...Don't fall victim to "analysis paralysis," putting off a decision until you've evaluated every possible option. Successful people just focus on the critical details, then act.

>> Review of Last Week

SOMEHOW STAYING POSITIVE...From little guys to big time investors, we're all trying to keep our spirits up on the good news and patiently wait out the bad. This week had a bit of both, ending Friday with the disappointing report that France lost its "AAA" credit rating and Italy and Spain are expected to drop a couple of notches in their ratings as well. But investors found enough encouragement to help stocks post a modest gain for the second trading week of the year.

One thing that made everyone upbeat was the latest University of Michigan Consumer Sentiment, which shot up from December's 69.9 to a preliminary reading of 74.0 for January, its highest level since May 2011. But disappointing news came with December Retail Sales--up just 0.1% overall and down 0.2%, excluding autos. The Fed's Beige Book noted a modest increase in economic activity but said nothing to allay concerns over the slow pace of recovery. Finally, the trade deficit grew to $47.8 billion with a drop in exports.

For the week, the Dow ended UP 0.5%, at 12422; the S&P 500 closed UP 0.9%, to 1289; and the Nasdaq gained 1.4%, to 2711.

The bond market enjoyed the benefits of the flight to safety by investors who had new reasons to fret over the European sovereign debt situation. The FNMA 3.5% bond we watch ended the week UP .03, at $103.08. National average rates for all types of mortgages tracked by Freddie Mac hit new lows for the week ending last Thursday.

DID YOU KNOW?...Inflation is the overall general upward price movement of goods and services in an economy, usually as measured by this week's Consumer Price Index (CPI) and Producer Price Index (PPI).

>> This Week’s Forecast

HOME BUILDING, EXISTING HOME SALES, INFLATION... Housing news comes Thursday with December Housing Starts and Building Permits gauging the state of new construction. The annual rates are expected to dip a little, staying just under 700,000. Friday's Existing Home Sales for December are expected to rise to 4.57 million, which is encouraging.

The week also features December PPI wholesale inflation readings, forecast holding in safe territory, and consumer CPI inflation numbers, also predicted to hold steady. Monday, U.S. markets are closed in observance of Martin Luther King, Jr., Day.

>> The Week’s Economic Indicator Calendar

Weaker than expected economic data tends to send bond prices up and interest rates down, while positive data points to lower bond prices and rising loan rates.

Economic Calendar for the Week of Jan 16 – Jan 20

Date Time (ET) Release For Consensus Prior Impact

Tu Jan 17 08:30 NY Empire State Manufacturing Jan 10.0 9.5 Moderate

W Jan 18 08:30 Producer Price Index (PPI) Dec 0.1% 0.3% Moderate

W Jan 18 08:30 Core PPI Dec 0.1% 0.1% Moderate

W Jan 18 09:15 Industrial Production Dec 0.5% -0.2% Moderate

W Jan 18 09:15 Capacity Utilization Dec 78.1% 77.8% Moderate

Th Jan 19 08:30 Initial Unemployment Claims 1/14 387K 399K Moderate

Th Jan 19 08:30 Continuing Unemployment Claims 1/7 3.613M 3.628M Moderate

Th Jan 19 08:30 Consumer Price Index (CPI) Dec 0.1% 0.0% HIGH

Th Jan 19 08:30 Core CPI Dec 0.1% 0.2% HIGH

Th Jan 19 08:30 Housing Starts Dec 670K 685K Moderate

Th Jan 19 08:30 Building Permits Dec 680K 681K Moderate

Th Jan 19 10:00 Philadelphia Fed Manufacturing Jan 10.0 10.3 HIGH

Th Jan 19 11:00 Crude Inventories 1/14 NA 4.958M Moderate

F Jan 20 10:00 Existing Home Sales Dec 4.57M 4.42M Moderate

>> Federal Reserve Watch

Forecasting Federal Reserve policy changes in coming months... The experts expect the Fed Funds Rate to stay at super low levels. Note: In the lower chart, a 1% probability of change is a 99% certainty the rate will stay the same.

Current Fed Funds Rate: 0%–0.25%

After FOMC meeting on: Consensus

Jan 25 0%–0.25%

Mar 13 0%–0.25%

Apr 25 0%–0.25%

Probability of change from current policy:

After FOMC meeting on: Consensus

Jan 25 <1%

Mar 13 <1%

Apr 25 <1%

Thanks Uncle Sam...

2012-01-10T14:12:00.000-05:00

Pursuant to the Temporary Payroll Tax Cut Continuation Act of 2011, the Federal Housing Finance Agency (FHFA) has imposed a mandatory price increase which will be paid for by increasing the fees charged to mortgage lenders by Government Sponsored Entities (GSE) such as Fannie Mae and Freddie Mac.

This Act provides for a two-month extension of the social security tax cut of 4.2% from the original rate of 6.2%. The extension saves approximately $1,000 per household

What does this mean to you?

Beginning today, January 10, 2012, our Investors have imposed an across the board price hike that impacts rates and lock extensions. We are anticipating an estimated rate increase of 0.125%.

Market Update For the week of January 9, 2012

2012-01-10T14:05:00.003-05:00

QUOTE OF THE WEEK..."Opportunities are disguised by hard work, so most people don't recognize them."--Ann Landers

INFO THAT HITS US WHERE WE LIVE...The latest opportunity in real estate came December 28, when the Federal Housing Administration extended the waiver of its "anti-flipping" rule through the end of 2012. This lets homebuyers, who need FHA-insured financing, purchase homes that were bought by the seller in the last 90 days. And it gives investors looking to rehab and flip properties an expanded market, including first-time homebuyers and others without large down payments, who need FHA-backed loans.

The Mortgage Bankers Association (MBA) reported that during 2011, near-record-low mortgage rates drove more homeowners to seek refinancing, moving that MBA index up more than 60%. But demand for purchase loans fell versus 2010, although that year's activity was boosted by the homebuyer tax credit incentives.

BUSINESS TIP OF THE WEEK...It's great to get organized at the start of a new year. The key is to begin. Focus on just one project. Then break it down into smaller parts and accomplish one thing each day, or week, until done!

>> Review of Last Week

UP START...For investors, 2012 began in the right direction as stocks ended the first week of the year UP. But this result was due mainly to an upsurge on Tuesday that was big enough to offset tepid performances the next three days, when traders got jittery over Europe. Spain was in the spotlight again, with new player Hungary now adding to the financial uncertainty. The net result was a weaker Euro, falling about 0.6% to a new 16-month low of $1.27. Time to take that European vacation.

Encouragement came with manufacturing growing in December at its fastest pace in six months. Weekly initial jobless claims dropped again, to 372,000. The December employment report was an upside surprise, with 200,000 new nonfarm jobs showing up and the unemployment rate inching down to 8.5%. But a few observers were concerned there's probably some seasonality in those numbers. ISM Services, which tracks the sector responsible for over 80% of U.S. jobs, came in a little lower than expected, although still in growth territory.

For the week, the Dow ended UP 1.2%, at 12360; the S&P 500 closed UP 1.6%, to 1278; and the Nasdaq gained 2.7%, to 2674.

The bond market elicited mixed results for the week, with Treasuries trending lower, but continuing Euro worries supported prices elsewhere. The FNMA 3.5% bond we watch ended the week UP .78, at $103.05. Average fixed mortgage rates across the U.S. started the new year at or near record lows as tracked by Freddie Mac's weekly survey.

DID YOU KNOW?..."Home on the Range" is one of the most famous songs with "home" in its title. It was written by Dr. Brewster Higley in 1876 and is the official state song of Kansas.

This Week’s Forecast

FED OPINIONS, HOLIDAY SHOPPING, EXPORTS AND CONSUMER FEELINGS... Wednesday, the Fed's Beige Book reveals views on the economy from Federal Reserve Districts around the country. Thursday will gauge the consumer's enthusiasm for holiday shopping, as measured by December Retail Sales, forecast to be up.

The week ends with the November Trade Balance, expected to grow (not so good) and Michigan Consumer Sentiment, also predicted to increase (good).

The Week’s Economic Indicator Calendar
Weaker than expected economic data tends to send bond prices up and interest rates down, while positive data points to lower bond prices and rising loan rates.

Economic Calendar for the Week of Jan 9 – Jan 13

Date Time (ET) Release For Consensus Prior Impact

W Jan 11 10:30 Crude Inventories 1/7 NA 2.209M Moderate

W Jan 11 14:00 Fed's Beige Book Jan NA NA Moderate

Th Jan 12 08:30 Initial Unemployment Claims 1/7 375K 372K Moderate

Th Jan 12 08:30 Continuing Unemployment Claims 12/31 3.588M 3.595M Moderate

Th Jan 12 08:30 Retail Sales Dec 0.4% 0.2% HIGH

Th Jan 12 08:30 Retail Sales ex-auto Dec 0.4% 0.2% HIGH

Th Jan 12 10:00 Business Inventories Nov 0.5% 0.8% Moderate

F Jan 13 08:30 Trade Balance Nov -$44.3B -$43.5B Moderate

F Jan 13 09:55 Univ. of Michigan Consumer Sentiment Jan 71.0 69.9 Moderate

>> Federal Reserve Watch

Forecasting Federal Reserve policy changes in coming months...Economists believe the Fed Funds Rate will stay at super low levels for awhile. Note: In the lower chart, a 1% probability of change is a 99% certainty the rate will stay the same.

Current Fed Funds Rate: 0%–0.25%

After FOMC meeting on: Consensus

Jan 25 0%–0.25%

Mar 13 0%–0.25%

Apr 25 0%–0.25%

Probability of change from current policy:

After FOMC meeting on: Consensus

Jan 25 <1%

Mar 13 <1%

Apr 25 <1%

Raleigh Ranks as America's Number 1 City by Businessweek

2012-01-03T11:30:00.003-05:00

Why it’s ranked:
"Taking more than a dozen data points into account, Raleigh ranks as the best place to live in the U.S. The city sports a high number of bars, restaurants, and cultural institutions as well as a thriving social scene, great parks, and good schools. Raleigh reflects the cultural graces that go along with anchoring the so-called research triangle, home to North Carolina State University, Duke University, and the University of North Carolina at Chapel Hill. Of course, it’s also much more. The city offers a great deal on nights and weekends, from concerts and opera to the 30,000-sq.-ft. State Farmer’s Market. North Carolina’s state capital is tops in our book."

http://www.businessweek.com/lifestyle/which-is-americas-best-city-09202011.html

Market Update -- For the week of January 2, 2012

2012-01-03T11:22:00.001-05:00

QUOTE OF THE WEEK..."Of all the things you wear, your expression is the most important." --Anonymous

INFO THAT HITS US WHERE WE LIVE...It's good to show your best face to the world as the new year begins (see Business Tip of the Week, below) and that just got easier to do. Last week's Pending Home Sales index from the National Association of Realtors (NAR) went UP 7.3% in November, hitting its highest level since April 2010! And that earlier reading was artificially boosted, as buyers rushed to beat the deadline for last year's home buyer tax credit.

The NAR's chief economist commented, "Housing affordability conditions are at a record high and there is pent-up demand from buyers who've been on the sidelines.... The sustained rise in contract activity suggests that closed existing-home sales...should continue to improve in the months ahead." The S&P Case-Shiller index for October showed minor price drops in 19 of the 20 surveyed metro areas, but the index was UP 1.9% from its post-crisis low in March 2011.

BUSINESS TIP OF THE WEEK...The new year is a great time to remember that successful people think positive. They're not unrealistic, but they do see the positive side of an opportunity and firmly believe in their ability to reach their goals.

Review of Last Week
GOODBYE, 2011!...The wild year on Wall Street ended not with a bang but a whimper, as stocks slumped slightly for the week on very light trading. Volatility was the theme for 2011, although when all was said and done, the broadly based S&P 500 stock index ended dead flat for the year. This reflects how many investors view the economy: recovering so slowly, its growth slope is practically horizontal. The year's volatility was echoed in a 140-point drop Wednesday followed by a 136-point surge the very next day.

The week's positive economic news included the Pending Home Sales gain covered above and initial jobless claims staying below 400,000 for another week. But none of this "good" news was very terrific, so economic emotions were held in check by the usual suspects: European debt worries and corporate underperformers. Sears announced it would close about 100 stores and American Airlines parent AMR Corp., which filed for bankruptcy protection last month, revealed its stock would be delisted from the Big Board.

For the week, the Dow ended down 0.6%, at 12218 but UP 5.5% for the year; the S&P 500 also dipped 0.6%, to 1258 but was unchanged for the year; and the Nasdaq dropped 0.5%, to 2605 and was down 1.8% for the year.

Although it was a low volume week all around, the bond market behaved conventionally, prices heading north as stocks drifted south. The FNMA 3.5% bond we watch ended the week UP .95, at $102.27. According to Freddie Mac's weekly survey, national average fixed mortgage rates inched up from the prior week's record lows. But they're expected to stay in super low territory for awhile.

DID YOU KNOW?...The FOMC Minutes released Tuesday give insight into the decision making process for monetary policy and what the Fed thinks about economic developments inside and outside the U.S.

This Week’s Forecast
MANUFACTURING, SERVICES, FED MINUTES, JOBS...The markets are closed today in observance of New Year's, but the rest of the week is packed with economic data. ISM Manufacturing on Tuesday should remain in expansion territory just like ISM Services on Thursday. Tuesday's FOMC Minutes from the Fed's December 13 meeting may provide useful insight.

But the week's highlight will be Friday's December Jobs report.150,000 Nonfarm Payrolls should be added, which won't do anything to help the Unemployment Rate, expected to creep back up to 8.7%.
>> The Week’s Economic Indicator Calendar
Weaker than expected economic data tends to send bond prices up and interest rates down, while positive data points to lower bond prices and rising loan rates.

Economic Calendar for the Week of Jan 2 – Jan 6
Date Time (ET) Release For Consensus Prior Impact
Tu Jan 3 10:00 ISM Index Dec 53.4 52.7 HIGH

Tu Jan 3 14:00 FOMC Minutes 12/13 NA NA HIGH

Th Jan 5 08:30 Initial Unemployment Claims 12/31 375K 381K Moderate

Th Jan 5 08:30 Continuing Unemployment Claims 12/24 3.620M 3.601M Moderate

Th Jan 5 09:45 ISM Services Dec 53.0 52.0 Moderate

Th Jan 5 11:00 Crude Inventories 12/31 NA 3.899M Moderate

F Jan 6 08:30 Average Workweek Dec 34.3 34.3 HIGH

F Jan 6 08:30 Hourly Earnings Dec 0.2% -0.1% HIGH

F Jan 6 08:30 Nonfarm Payrolls Dec 150K 120K HIGH

F Jan 6 08:30 Unemployment Rate Dec 8.7% 8.6% HIGH

Federal Reserve Watch
Forecasting Federal Reserve policy changes in coming months...The expectation is for the Fed Funds Rate to remain at its rock bottom level well into the future. Note: In the lower chart, a 1% probability of change is a 99% certainty the rate will stay the same.
Current Fed Funds Rate: 0%–0.25%
After FOMC meeting on: Consensus
Jan 25 0%–0.25%
Mar 13 0%–0.25%
Apr 25 0%–0.25%

Probability of change from current policy:
After FOMC meeting on: Consensus
Jan 25 <1%
Mar 13 <1%
Apr 25 <1%

Market Update --For the week of December 19, 2011

2011-12-19T13:39:00.000-05:00

Happy Holidays!

QUOTE OF THE WEEK..."Do what you can with what you have where you are."--Theodore Roosevelt

INFO THAT HITS US WHERE WE LIVE...The famous President's sage advice from a century ago is still the appropriate approach to today's housing market. In the midst of all the media noise, it's always good to check what we do have and where we really are. For example, the Census Bureau reported that although the median sale price of new homes in October was down 15% over the last five years, it's actually up 26% over the last ten. More evidence that housing still is a good investment over the long term.

A recent economic forecast from the National Association of Realtors (NAR) reports existing home sales are expected to grow by 1.2% this year and 5.1% in 2012. And although the median existing home price is predicted to dip about 4% this year, it should recover and go UP 2.6% in 2012. Sales should also jump to 5.22 million units from this year's projected 4.97 million.

BUSINESS TIP OF THE WEEK...Now is a good time to think about setting goals. The key is to make those goals concrete--as specific as you can--with a time frame for when you want to achieve them.

>> Review of Last Week
EURO TRASH...It was another week of European worries trashing stock prices. The Euro Summit the week before failed to come up with the "bazooka" solution investors had been looking for. Then ratings agencies warned of potential further downgrades in the region. All this made Wall Streeters feel quite risk averse, causing them to exit the equity markets, which sent all three major indexes decidedly down for the week.

With our own economy, things weren't so bad. Retail Sales were up for November, though less than expected, but up 6.7% versus a year ago. This wasn't enough to impress the Fed, whose meeting Tuesday made it three years of interest rates at near-zero levels. The economic data isn't great, but it is somewhat improving. Initial weekly jobless claims hit a 43-month low of 366,000. The Empire State and Philadelphia Fed Surveys of manufacturing in those regions were better than expected, although industrial production overall dropped a bit.

For the week, the Dow ended down 2.6%, at 11866; the S&P 500 slipped down 2.8%, to 1220; and the Nasdaq dropped 3.5%, to 2555.

Investors were still nervous about Europe and the Fed's statement didn't say anything to concern traders, so bond prices held up well. The FNMA 3.5% bond we watch ended the week UP .91, at $102.22. This is of course good for interest rates and, once again, Freddie Mac's weekly survey had national average fixed mortgage rates remaining at or near their all-time lows.

DID YOU KNOW?... This week's PCE (Personal Consumption Expenditures) measures inflation by tracking changes in prices. Unlike last week's Consumer Price Index, based on a fixed basket of goods and services, the PCE changes with consumer spending habits.

>> This Week’s Forecast
HOUSING, GDP, INFLATION...The week jams in a bunch of housing market reports and they're mixed. On Tuesday, November Housing Starts and Building Permits should come in down a tad, but November Existing Home Sales are predicted to rise north of five million units. Friday, we'll see November New Home Sales, forecast to edge up to a 313,000 annual rate.

Thursday will feature the Third Estimate for Third Quarter GDP, expected to stay an anemic 2.0%. Friday, Core PCE Prices, the Fed's key measure of inflation, is forecast flat for November, which should make everyone happy. The stock market will be closed next Monday, December 26, in observance of the Christmas holiday.
>> The Week’s Economic Indicator Calendar
Weaker than expected economic data tends to send bond prices up and interest rates down, while positive data points to lower bond prices and rising loan rates.

Economic Calendar for the Week of Dec 19 – Dec 23
Date Time (ET) Release For Consensus Prior Impact
Tu Dec 20 08:30 Housing Starts Nov 627K 628K Moderate
Tu Dec 20 08:30 Building Permits Nov 633K 653K Moderate
W Dec 21 10:00 Existing Home Sales Nov 5.03M 4.97M Moderate
W Dec 21 10:30 Crude Inventories 12/17 NA -1.932M Moderate
Th Dec 22 08:30 Initial Unemployment Claims 12/17 380K 366K Moderate
Th Dec 22 08:30 Continuing Unemployment Claims 12/10 3.650M 3.603M Moderate
Th Dec 22 08:30 GDP-3rd Estimate Q3 2.0% 2.0% Moderate
Th Dec 22 08:30 GDP Deflator-3rd Estimate Q3 2.5% 2.5% Moderate
Th Dec 22 09:55 Univ. of Michigan Sentiment-Final Dec 68.0 67.7 Moderate
Th Dec 22 10:00 Leading Economic Indicators (LEI) Index Nov 0.3% 0.9% Moderate
F Dec 23 08:30 Durable Goods Orders Nov 2.0% -0.5% Moderate
F Dec 23 08:30 Personal Income Nov 0.2% 0.4% Moderate
F Dec 23 08:30 Personal Spending Nov 0.3% 0.1% HIGH
F Dec 23 08:30 Core PCE Prices Nov 0.1% 0.1% HIGH
F Dec 23 10:00 New Home Sales Nov 313K 307K Moderate

>> Federal Reserve Watch
Forecasting Federal Reserve policy changes in coming months...Last week, the Fed kept the Funds Rate unchanged and that's where economists expect it to stay well into the future. Note: In the lower chart, a 1% probability of change is a 99% certainty the rate will stay the same.
Current Fed Funds Rate: 0%–0.25%
After FOMC meeting on: Consensus
Jan 25 0%–0.25%
Mar 13 0%–0.25%
Apr 25 0%–0.25%

Probability of change from current policy:
After FOMC meeting on: Consensus
Jan 25 <1%
Mar 13 <1%
Apr 25 <1%

10 Things to Put on Your Holiday Checklist

2011-12-15T16:32:00.000-05:00

PLUS...Year-end financial to-do listThe Holidays are upon us. Here's how to stay well organized, so you can enjoy them the most.1. Do your online shopping first. Order gifts on the internet now, to allow time for shipping, returns and getting them wrapped.2. How are you fixed for glassware? The holidays often feature bigger entertaining. Make sure you have enough glasses and dishes for parties and meals.3. Do your holiday meal menus. Decide what you'll be cooking and what others will bring. Make up a master grocery list for your centerpiece dish. 4. Do your nonperishable shopping. Get in all canned goods, pantry staples and bottled beverages.5. Clean the house. Keeping the house neat makes decorations stand out. And clean out the refrigerator to make room for those big holiday dishes.6. Got kids? Get batteries! Make sure you have them on hand in all the right sizes.7. Shop for your fresh foods. Get these ingredients two or three days before you'll need them.8. Set the table ahead of time. That way you can concentrate on the food prep the day of the feast.9. Don't forget fresh flowers. Get them two days before to give blooms time to open up.10. Charge camera and video batteries. Charge spare batteries too, if you have them. Now you're ready to relax and enjoy family and friends!YOUR END-OF-THE-YEAR FINANCIAL CHECK-UPSNow is the right time to take a look at a few financial matters:1. Review health and dental care choices. Many employers allow you to make changes to your benefit plans now. Check with doctors and dentists to make sure they're still in your plan's preferred provider network and that your family has adequate coverage.2. Review use-or-lose accounts. Pretax Flexible Spending Accounts (FSAs) are set up this way. Review your plan to see if you have some spending to do, or if your employer offers a grace period. Even then, make sure 2011 expenses are still allowed in 2012.3. Review your withholding. Check the withholding calculator at the IRS website. If you haven't been withholding enough to cover your taxes, you might want to increase the amount. Under-withholding can result in penalties.4. Get ready for 2011 taxes. Check last year's returns to see who needs to send you what tax documents, and by when. Make a list and follow up if anyone holds you up at the beginning of the year. Also, check last year's return for itemized deductions. See if you should make deductible purchases now or wait until 2012. Note: Be sure to consult with a tax professional before making any decisions related to your tax situation.5. Set your 2012 financial goals. Now is the time to write down what you'd like to achieve financially next year. Save money for a down payment on a new house? Start a college fund for your kids? Put more into your retirement fund?Remember, we're always here to answer any questions.... Have a great day!PS With today's extremely low mortgage rates and home prices more affordable than ever, many people are upsizing, downsizing or refinancing. Please call or email us now to discuss your situation.

Market Update For the week of November 28, 2011

2011-11-28T10:06:00.003-05:00

QUOTE OF THE WEEK..."One who is a master of patience is master of everything else."--George Savile (1633–1695), English statesman, writer and politician

INFO THAT HITS US WHERE WE LIVE...The patient approach advocated by the 1st Marquess of Halifax is proving to be the right tactic for mastering today's housing market. Last week, October Existing Home Sales inched up to an annual rate just under 5 million units. And although things appear to be improving only slowly, existing home sales are actually UP 13.5% from a year ago.

Even better, the months' supply of existing homes fell to 8.0 and inventory is now down 13.8% versus a year ago. The naysayers jumped on the fact that the median price was also down. But a large portion of October sales came from distressed properties whose prices are heavily discounted. Although some see this as a negative, it's what's needed for inventories to be worked down and for the housing market to recover.

BUSINESS TIP OF THE WEEK...Planning is important but stay flexible. The unexpected often happens in business and flexibility keeps you open to the creative thinking needed to succeed.

>> Review of Last Week
NO THANKS... People feel positive around Thanksgiving, but folks on Wall Street spent the week in a decidedly negative mood. They were put there at the start by Congressional leaders who couldn't get past partisan politics to deal with our nation's fiscal issues. Then Moody's fed the down vibe with cautious comments about France's debt rating outlook. A third bummer came with Tuesday's downward revision to Q3 GDP, coming in at a measly 2.0%. The net result? The worst ever Thanksgiving week for stocks.

There really were some things to be thankful for. The Q3 GDP report showed business investment growing at its fastest pace this year. Chain store sales were UP 3.7% over last year by one study and UP 2.8% by another. Incomes grew in October more than predicted, although spending grew less. Initial jobless claims stayed below 400,000. Finally, October Durable Goods orders were down slightly for the month, but if you take out volatile transportation, they are UP 11.7% from a year ago.

For the week, the Dow ended down 4.8%, at 11232; the S&P 500 went down 4.7%, to 1159; and the Nasdaq sank 5.1%, to 2442.

With stocks having such an awful week, you'd expect bonds to benefit immensely. Not so this time. With volumes down as usual on Black Friday's shortened trading day, bond performance was mixed. The FNMA 3.5% bond we watch ended the week down .02, at $101.20. National average mortgage rates remained at or near record lows for the fourth week in a row, according to Freddie Mac's weekly survey.

DID YOU KNOW?... The 1792 Buttonwood Agreement created the New York Stock Exchange. It was signed by 24 stockbrokers under a buttonwood tree outside 86 Wall Street.
>> This Week’s Forecast
NEW HOME SALES, PENDING HOME SALES, JOBS... Of great interest this week will be more housing market reports and the jobs numbers that are key to the real estate recovery. October New Home Sales are expected to hold steady, above the 300,000 level. September Pending Home Sales, indicating Existing Home Sales a few months out, look to be up a tad.

Friday, we get the November Employment Report. Although payrolls should rise, the number of new jobs is still not enough to bring down the unemployment rate.
>> The Week’s Economic Indicator Calendar
Weaker than expected economic data tends to send bond prices up and interest rates down, while positive data points to lower bond prices and rising loan rates.

Economic Calendar for the Week of Nov 28 – Dec 2
Date Time (ET) Release For Consensus Prior Impact
M
Nov 28 10:00 New Home Sales Oct 312K 313K Moderate
Tu
Nov 29 10:00 Consumer Confidence Nov 43.0 39.8 Moderate
W
Nov 30 08:30 Productivity-Rev. Q3 2.6% 3.1% Moderate
W
Nov 30 09:45 Chicago PMI Nov 57.5 58.4 HIGH
W
Nov 30 10:00 Pending Home Sales Sep 0.1% -4.6% Moderate
W
Nov 30 10:30 Crude Inventories 11/26 NA -6.219M Moderate
W
Nov 30 14:00 Fed Beige Book Nov NA NA Moderate
Th
Dec 1 08:30 Initial Unemployment Claims 11/26 390K 393K Moderate
Th
Dec 1 08:30 Continuing Unemployment Claims 11/19 3.650M 3.691M Moderate
Th
Dec 1 10:00 ISM Index Nov 51.0 50.8 HIGH
F
Dec 2 08:30 Average Workweek Nov 34.3 34.3 HIGH
F
Dec 2 08:30 Hourly Earnings Nov 0.2% 0.2% HIGH
F
Dec 2 08:30 Nonfarm Payrolls Nov 118K 80K HIGH
F
Dec 2 08:30 Unemployment Rate Nov 9.0% 9.0% HIGH

>> Federal Reserve Watch
Forecasting Federal Reserve policy changes in coming months...The Fed says it wants to keep the Funds rate where it is through mid-2013 and economists expect that they will. Note: In the lower chart, a 1% probability of change is a 99% certainty the rate will stay the same.
Current Fed Funds Rate: 0%–0.25%
After FOMC meeting on: Consensus
Dec 13 0%–0.25%
Jan 25 0%–0.25%
Mar 13 0%–0.25%

Probability of change from current policy:
After FOMC meeting on: Consensus
Dec 13 <1%
Jan 25 <1%
Mar 13 <1%

Market Update

2011-11-21T06:18:00.004-05:00

For the week of November 21, 2011 – Vol. 9, Issue 47

>> Market Update

QUOTE OF THE WEEK..."Our greatest glory is not in never falling, but in rising every time we fall."--Confucius

INFO THAT HITS US WHERE WE LIVE...Last week some observers felt there were signs home building may be starting to rise. October Housing Starts came in above expectations at a 628,000 unit annual rate. Off a mere 0.3% from the month before, starts are now up 16.5% versus a year ago. Single-family starts were up 3.9% in October, so the slight monthly decline was all from those very volatile multi-family units. Multi-family starts are actually up 88.6% over a year ago.

Even better, Building Permits, which indicate where Housing Starts may be a few months out, were UP 10.9% in October, to a 653,000 annual rate. Over the last year, permits are UP 6.6% for single-family homes and UP 48.0% for multi-families. The total number of homes being built has increased three times in the last four months, after posting no increases from 2006 until four months ago. In line with all this, a national home builder index rose to its best reading since May 2010.

BUSINESS TIP OF THE WEEK...The best way to handle a complaint is to quickly address it. Studies show this often makes a customer even more likely to come back.

>> Review of Last Week

WEAK WEEK...In last week's financial and economic news, all the stories seemed to be coming out of Europe. Coverage of the debt crisis continued, and was joined by concerns that economic growth was slowing, putting some of the more troubled countries on the brink of recession. All this Euro trashing sent our stocks on a mighty slide down, the market ending up with its worst weekly performance in almost two months.

Over here, our Leading Economic Indicators (LEI) Index headed up, bolstering hopes for the U.S. economy. New jobless claims dropped by 5,000 last week, to 388,000, while Continuing Claims declined by 57,000, to 3.6 million. Some analysts feel November could be another month with respectable job growth. Retail sales rose for the fifth consecutive month in October and are 7.2% higher than a year ago.Vehicle sales in November are tracking at a 14 million annual rate. And consumer confidence was up for the third month in a row in early November.

For the week, the Dow ended down 2.9%, at 11796; the S&P 500 was down 3.8%, to1216; and the Nasdaq slid 4.0%, to 2573.

The plummeting stock market help bonds somewhat. But economic data that beat expectations prevented bond prices from really taking off. The FNMA 3.5% bond we watch ended the week up .03, at $101.22. National average mortgage rates were little changed, according to Freddie Mac's weekly survey, staying at their recent extremely low levels.

DID YOU KNOW?... This week's Durable Goods report measures consumer spending on products expected to last more than three years, such as cars, TVs and appliances. The data provides insight into the future of manufacturing.

>> This Week’s Forecast

NO TURKEYS... We can be thankful this holiday-shortened week isn't expected to serve up any turkeys via its economic reports. October Existing Home Sales shouldn't ease off too much and the Second Estimate for Q3 GDP is forecast to stay at a modest level, but none of this is awful news.

Meanwhile, Initial Weekly Jobless Claims are predicted to remain under 400,000, with Core PCE Prices expected to show inflation under control in October. The markets are closed Thursday and Friday for the holiday. Happy Thanksgiving to you and yours!

>> The Week’s Economic Indicator Calendar

Weaker than expected economic data tends to send bond prices up and interest rates down, while positive data points to lower bond prices and rising loan rates.

Economic Calendar for the Week of Nov 21 – Nov 25

Date	Time (ET)	Release	For	Consensus	Prior	Impact
M Nov 21	10:00	Existing Home Sales	Oct	4.85M	4.91M	Moderate
Tu Nov 22	08:30	GDP - Second Estimate	Q3	2.5%	2.5%	Moderate
Tu Nov 22	08:30	GDP Deflator - Second Estimate	Q3	2.5%	2.5%	Moderate
Tu Nov 22	14:00	FOMC Minutes	11/2	NA	NA	HIGH
W Nov 23	08:30	Initial Unemployment Claims	11/19	391K	388K	Moderate
W Nov 23	08:30	Continuing Unemployment Claims	11/12	3.620M	3.608M	Moderate
W Nov 23	08:30	Personal Income	Oct	0.3%	0.1%	Moderate
W Nov 23	08:30	Personal Spending	Oct	0.3%	0.6%	HIGH
W Nov 23	08:30	Core PCE Prices	Oct	0.1%	0.1%	HIGH
W Nov 23	08:30	Durable Goods Orders	Oct	-1.0%	-0.6%	Moderate
W Nov 23	09:55	Univ. of Michigan Consumer Sentiment-Final	Nov	64.2	64.2	Moderate
W Nov 23	10:30	Crude Inventories	11/19	NA	-1.056M	Moderate

>> Federal Reserve Watch

Forecasting Federal Reserve policy changes in coming months...The Fed wants to keep the Funds rate where it is through mid-2013. Economists don't see any reason why they won't be able to. Note: In the lower chart, a 1% probability of change is a 99% certainty the rate will stay the same.

Current Fed Funds Rate: 0%–0.25%

After FOMC meeting on:	Consensus
Dec 13	0%–0.25%
Jan 25	0%–0.25%
Mar 13	0%–0.25%

Probability of change from current policy:

After FOMC meeting on:	Consensus
Dec 13	<1%
Jan 25	<1%
Mar 13	<1%

What is Going on With all of the Lending Paperwork?

2011-11-08T10:32:00.002-05:00

http://www.bloomberg.com/news/2011-10-25/fannie-squeezing-banks-makes-4-mortgage-a-mirage-hinders-housing-rebound.html

Turning Clients Into Fans

2011-07-28T08:55:00.002-04:00

Want to turn clients into fans?

Just UPOD--Under-Promise, Over-Deliver!

Our businesses are service-based and in a service business, customer satisfaction is the key to success -- when you make a promise, you've got to deliver.

But the business environment is far more competitive than it's ever been -- your satisfied customers can easily become your competitors' satisfied customers.

The way to prevent that is to start turning those satisfied customers into enthusiastic, loyal fans. Fans are so impressed with what you do for them, they tell everyone else how terrific you are! And they wouldn't dream of using anyone else!

So how do you develop these fans?

Believe it or not, it doesn't take a boatload of great ideas (even though we're sure you can come up with them!). In fact, the quickest, surest way to blow people away doesn't take a lot of effort. And it doesn't cost a thing.

All you have to do is UPOD -- Under-Promise, Over Deliver.

Customer satisfaction is created when we deliver on our promises....Get those numbers together by Thursday. Deliver that analysis by Monday. Get this posted by the beginning of the week....Do what you said you would and customers are satisfied.

But how about giving customers MORE than they expect -- faster response, more alternatives and quicker delivery? That's when you wind up with dedicated fans that will take your business to the next level.

UPOD is based on a simple human principle. People are more impressed by great service they don't expect, than by great service they do. Tell a customer you'll deliver something tomorrow, deliver it and they'll be satisfied. But tell a customer you can come up with something in four days, then deliver it tomorrow and they'll be ecstatic! Please note: what they expect is simply what you promise.

So the key to UPOD is to focus on the "under-promise" part from the start. If you think you can complete a task by Wednesday, promise it for Friday. Then work to over-deliver by getting it to them on Wednesday. This is also good planning practice. Time management experts tell us it's always prudent to build a contingency percentage into a schedule estimate.

In addition to over-delivering with quicker turnaround, you also want to over-deliver with more value whenever you can. If they expect a program plan, add in a range of ideas on how to implement that plan. If they expect a rough budget estimate, give them three spending levels to consider. But don't take responsibility for assignments you haven't been given. And always stay on or below budget.

The wonderful thing about the UPOD approach is that you can wow customers without changing your operation. You just have to change your promise.

And a nice side benefit is the UPOD approach helps avoid the errors that often happen when you're rushing around to meet a self-imposed tight deadline. UPOD gives you the time to respond professionally to last-minute requests and avoid those 16-hour days.

Make "Under-Promise, Over-Deliver" your mantra for all customer interactions. Then watch those clients become your best business boosters. When satisfied customers turn into devoted fans, that's money in the bank... Enjoy a great month!

Inside Lending News

2011-07-18T14:07:00.005-04:00

QUOTE OF THE WEEK..."There is no right way to do the wrong thing."--Anonymous

INFO THAT HITS US WHERE WE LIVE...Increasingly, the wrong thing for consumers to do is to stay out of the housing market. In many locales, owning a home is now less expensive than renting. Rents are rising and vacancies falling, according to a report that tracked leasing data across the country. For the second quarter, rents rose in all but two of 82 markets, while vacancies dropped in 72 of them, sending the vacancy rate to 6%, its lowest level since 2008. Another report showed rental listing prices up 6.7% nationally in June versus a year ago. Meanwhile, national average mortgage rates got pushed down some more, thanks to the prior week's disappointing jobs report. And the Mortgage Bankers Association reported demand for purchase loans was at about the same level as a year ago, although down a tad from the week before.

BUSINESS TIP OF THE WEEK...Creativity, productivity and efficiency come in waves. When your productivity surges, roll with it. Switch projects to stay motivated. But when creativity ebbs, simply take care of the boring stuff that needs to get done.

Review of Last Week
DEBT WORRIES WOBBLE STOCKS...The word of the week was "debt" as investors worried about both Italy's sovereign debt problems and the inability of the politicians in Washington to get to agreement on raising the U.S. debt ceiling. With these uncertainties, stocks wobbled off their high perch and all three indexes sank for the week, the broad-based S&P 500 down 2%.

The FOMC Minutes from the Fed's last meeting revealed a divided committee. Some officials feel the central bank "might have to consider providing additional monetary stimulus" if the recovery remains slow. Others think inflation threats could cause them "to begin removing policy accommodation sooner."

Tracking inflation, the June Core Consumer Price Index (CPI) was up a little more than expected, but consumers weren't that put off, as June Retail Sales were up a tick for the month and up 8.1% from a year ago.For the week, the Dow ended down 1.4%, to 12480; the S&P 500 was down 2.1%, to 1316; and the Nasdaq was down 2.4%, to 2790.European debt worries and disappointing economic news sent investors to the safe haven of the bond market. Successful Treasury auctions showed these folks weren't worried about U.S. debt. The FNMA 4.0% bond we follow ended the week UP .09, at $100.28. National average rates on fixed-rate mortgages, according to Freddie Mac's weekly survey, are at or near lows for the year.

DID YOU KNOW?...The Federal Open Market Committee (FOMC) has 19 members, including seven Federal Reserve board members in Washington and 12 regional Fed bank presidents. Two Fed board seats are currently vacant.

This Week’s Forecast
HOME BUILDING, HOME SELLING EDGING UP...Tuesday's June Housing Starts are forecast up slightly from last month, although still not near pre-downturn levels. Building Permits, foreshadowing starts a few months out, are expected to be flat. Wednesday, June Existing Home Sales should also be up, but not quite back to the 5 million annual rate. Weekly Initial Unemployment Claims are predicted to remain above 400,000. The Philadelphia Fed Index should show manufacturing in that region improved over last month. Finally, the June Leading Economic Indicators Index is expected to be up for the month, though at a lower rate than before.

The Week’s Economic Indicator Calendar (email me and I can provide a better copy in a grid format-- it's not transfering well here)
Weaker than expected economic data tends to send bond prices up and interest rates down, while positive data points to lower bond prices and rising loan rates. Economic Calendar for the Week of July 18 – July 22
Date
Time (ET)
Release
For
Consensus
Prior
Impact
TuJul 19
08:30
Housing Starts
Jun
570K
560K
Moderate
TuJul 19
08:30
Building Permits
Jun
609K
609K
Moderate
WJul 20
10:00
Existing Home Sales
Jun
4.93M
4.81M
Moderate
WJul 20
10:30
Crude Inventories
7/16
NA
-3.124M
Moderate
ThJul 21
08:30
Initial Unemployment Claims
7/16
411K
405K
Moderate
ThJul 21
08:30
Continuing Unemployment Claims
7/9
3.700M
3.727M
Moderate
ThJul 21
11:00
Philadelphia Fed Index
Jul
0.0
-7.70
HIGH
ThJul 21
08:30
Leading Economic Indicators (LEI) Index
Jun
0.3%
0.8%
Moderate

Federal Reserve Watch
Forecasting Federal Reserve policy changes in coming months...Fed Chairman Bernanke still feels the recovery needs all the help it can get, so economists expect he'll keep the Funds Rate at its super low level a bit longer. Note: In the lower chart, a 1% probability of change is a 99% certainty the rate will stay the same.
Current Fed Funds Rate: 0%–0.25%
After FOMC meeting on:
Consensus
Aug 9
0%–0.25%
Sep 20
0%–0.25%
Nov 2
0%–0.25%

Probability of change from current policy:
After FOMC meeting on:
Consensus
Aug 9
<1%
Sep 20
<1%
Nov 2
<1%

Market Update

2011-07-12T16:06:00.002-04:00

QUOTE OF THE WEEK..."Don't judge each day by the harvest you reap but by the seeds that you plant."--Robert Louis Stevenson

INFO THAT HITS US WHERE WE LIVE...It finally appears seeds are being planted for a housing recovery. Fannie Mae's monthly survey reported that Americans expect home prices to drop just 0.5% in the next year. Some reported this as a negative because a 0.7% price gain was expected last month. But other analysts see this as a bottom, and those surveyed agree, as the majority (69%) believe it's a good time to buy a home. A MacroMarkets LLC study echoed this. More than 50% of the economists, real estate experts and investment strategists polled said they expect a bottom for national home prices this year. Almost two thirds of the respondents felt our residential real estate market is at an historic turning point.The Wall Street Journal also reported this could be a good time to buy. The reasons? Mortgage rates are near 50-year lows; inventories are supporting a buyer's market; and homes are more affordable than they've been in years. Moody's calculates the ratio of home prices to income is now 20.9% lower than the 15-year average up through 2010.Finally, the Mortgage Bankers Association reported demand for purchase loans was UP 4.8% from the week before and UP 11.7% from a year ago.

BUSINESS TIP OF THE WEEK...Develop a business plan. Set down your goals and how you will achieve them. Then measure your performance at the end of the year and refine the plan, building on your successes and adjusting for changes in the marketplace.

TORNADO PREPARATION

2011-06-16T10:17:00.004-04:00

Plan your response. If a tornado hits, decide where you'd seek shelter in your home (more on this below) or in a solid nearby shelter you can get to quickly -- especially important if you're in a mobile home.

Have a "go kit" ready, including first-aid kit, flashlight and batteries, identification, matches, copies of important financial documents, an extra set of clothes and other items you know you'll need if a disaster hits.

Ask a friend or relative in another town to be an emergency contact if family members are in different locations when the storm hits. Be forewarned. Find out how your community receives NOAA tornado watches and warnings and make sure you have access to them. They could come over local TV and radio channels -- or get an NOAA weather radio whose annoyingly loud warning tones will alert you any time of the day or night.

Get the facts: Know what part of your county you live in and the names of surrounding counties and the key geographic features in your region. Warnings are issued using this information.

Indoor protection: Avoid windows and protect yourself from flying debris.

Go to the basement if there is one, or into a center hallway, closet or windowless room that's as far from the outside walls as possible. Get under some sturdy furniture and hang on. Indoor myth: Open the windows to equalize inside and outside air pressure.

Fact: It's the debris and the wind from tornadoes that cause damage, not differences in air pressure -- and that flying debris will "open" your windows anyway!

Outdoor protection: Lie flat on the ground in the lowest spot you can get to and protect your head with your arms.

Outdoor myth: If you can, take shelter under a highway overpass.

Fact: The wind and debris will still reach you beneath an overpass. Again, emergency response specialists say lying down in a ditch or culvert is safer.

After it passes: Do not go into damaged buildings, but do watch for downed power lines and leaking gas mains. Stay tuned to weather reports, since one storm system may spawn several tornadoes.

RENT VS BUY

2011-06-15T11:52:00.003-04:00

Does it make more sense to buy a home rather than rent one? Here are the latest facts:According to a national real estate website's data, it is now less expensive to own a home than to rent one in 72% of U.S. cities.This percentage will likely increase because analysts feel rental costs are about to explode. The demand for rentals has increased with the economic downturn, while the supply of rentals has quickly dropped. In this scenario, the only place for prices to go is UP!Even though home prices could still soften in some markets, the cost of owning a home may increase. This is because mortgages may soon get more expensive. Researchers with the Mortgage Bankers Association expect mortgage rates to rise the last three months of this year and continue to increase gradually through 2012.For most folks, it makes utmost sense to buy a home at a discounted price and secure a 30-year mortgage at an historically low fixed interest rate. This lets you set your housing expense for the next thirty years--while rents keep heading skyward.If you have any questions about your home financing or refinancing situation, please feel free to call or email. We're always glad to help.... Have a great day!

5 Triangle Stay-cation Suggestions for Memorial Day Weekend

2011-05-26T20:13:00.002-04:00

5 Triangle Stay-cation Suggestions for Memorial Day Weekend

Events, Farmers' MarketAdd comments

May262011

Have an extra long weekend, but think there’s nothing *fun* to do here in the Triangle? Think again. There are great spots to explore in every corner of the Triangle, and the fun starts Friday!

Might I suggest…

In Hillsborough, Last Fridays is a free concert series and art walk held in the historic downtown area. You’ll find Cyril Lance and his band of Arkestrians on the lawn of the old courthouse this last Friday, as well as artists and crafters around the square sidewalks (6:30-9:30 pm). Stop in Cup-a-Joe to sample this month’s strawberry pie contest entries, or enjoy dinner out at any one of downtown’s restaurants.

Come back to Hillsborough on Saturday to take a tasting tour of the city’s fantastic restaurants, handmade chocolates, locally roasted coffee, and more. Pre-tour, stop in at the Eno River Farmers Market and perhaps pick up a bite for brunch from one or two of the market’s many vendors. But don’t spoil your appetite for the tour!

Or how about…

Just beyond the Orange county line, Saxapahaw celebrates the grand opening of the Haw River Ballroom with a triple bill: The Old Ceremony, The Love Language, and the Paperhand Puppet show, Lumanity. The doors to the ballroom open wide at 8:00 pm and the first band should hit the stage around 9:00 pm. Tickets are available online for a mere $15.00 in advance ($17.00 day of the show).

Of course, each Saturday afternoon from May through August (5 to 8 pm) in the small ‘burb of Saxapahaw is afest of live music, a farmers’ market, plenty of kid-friendly activities, and great food, with a river view. Arrive early to pick out prime lawn seats, and take extra care to follow the parking signs & rules.

Meanwhile in Durham…

Durham’s sure to be the hub of activity this Saturday. At 8:00 am, the Doughman Quadrathlon begins as the teams eat and run, eat and swim, eat and bike… literally. Spectators and Cheerers-on can eat like a Doughman (and skip the really strenuous feats) via either the VIP ($40) or Supporter ($15) ticket packages. Don’t be surprised to see folks in costume running around downtown Durham that morning (and give ‘em a shout of encouragement if you do spy a participant). If you’re planning a visit to the Durham Farmers’ Market that morning (perhaps to catch Chef Dave Alworth from Guglhupf cooking something tasty around 10 am), alternate parking will be available at 423 Morris St, and the streets around the market, as the Doughman event takes over the Durham Centre lot where we usually park.

The fun and food don’t end when the race is over. Stick around for the Doughman hEArTS Durham Banquetand the after-party at Motorco. In another part of Durham, you’ll find Family Fun Day at Sarah P. Duke Gardens (11 am – 2 pm). Admission to the event is free, and parking is free too (until 1 pm). Parents and children can explore the nature-themed activity stations and events throughout, including the “Great Fish Release” of new fish in the refurbished pools at the foot of the Terrace Gardens. About 2 pm, Paperhand Puppet Intervention will lead a parade around the garden grounds and all are welcome to join.

Picnic Perfect

Picnic season is upon us. In downtown Raleigh, The Saturday Market at Rebus has all the goods you’ll need to whip up some picnic fixin’s: meats from Coon Rock, fish from the NC coast via Locals Seafood, cheeses from Calico Farmstead, produce from New Grass Gardens, and a variety of prepared foods, including chutneys, jams, mustard (yes, mustard!), baked goods, and Nello’s sauce. While in downtown, stop in the newly openedRaleigh Wine Shop for other “provisions” that make the picnic perfect.

Why not take that picnic over to the NC Museum of Art park? With miles of art-lined trails to explore outdoors and an expansive permanent art collection in the new building, hours of enjoyment are free for the budget conscious, and priceless delights abound, in and around the museum.

And finally…

If you’re really in the mood for a road trip, what about a taste tour of frozen confections. Travel from one side of the Triangle to the other, with adequate breaks between to recover from brain freeze, of course. Start on the southeastern edge at Sunni Sky’s in Angier, and choose from nearly 100 flavor varieties served in cups or cones, shakes and floats, and best enjoyed in a rocking chair on the front porch.

Next stop has to be for snoballs from Pelican’s original location on Hwy 401 in Garner, on the grounds of 401 Par Golf. Snoballs are fluffy and refreshing, and with more than 100 enticing flavors (like Guava, Mojito, Praline, and Wedding Cake), you’ll want to make frequent return trips.

Head to Durham to seek out Locopops. Everybody loves Locopops’ paletas (available in both water-based and dairy-based varieties). You’ll find plenty of flavor options to tempt your tastebuds, such as Mexican Chocolate, Cherry Lime, and seasonal “guest stars” Watergate Salad and Spearmint Lemonade. Did I mention you should bring a cooler along on this tour? You might want to take home a Locopint of Rhubarb Mascarpone, as a souvenir of your visit.

Set your GPS to “Chapel Chill” to try the (for adults only) Gelato-tini treats from Sugarland. How about a Blood Orange frozen martini, created from house-made Blood Orange gelato, Cointreau, Mandarin Napoleon & premium vodka? Sounds perfectly divine, doesn’t it. But don’t over do it – there’s one more stop to make on our frozen treat tour…

Here’s where we reach a spork (because you can’t eat ice cream with a fork) in the road. Maple View Farm has ice cream stores in Carrboro and at the Country Store location, on the farm in Hillsborough. You pick your final destination for the tour – either location is equally tasty. Choose from the regulars (Chocolate, Butter Pecan, Carolina Crunch), or pick one of the monthly specials (I see Strawberry Cheesecake!).

I hope you can squeeze in some time, between barbecues this weekend, to seek out your local favorites. Do check each business for their hours this holiday weekend, just in case they’re taking a holiday break too.

Enjoy your weekend Triangle Stay-cation!

Spring Maintenance Tips for Your Home

2011-03-20T08:11:00.007-04:00

Spring is the perfect time to catch up on home maintenance. The tips that follow will help insure a worry-free summer, fall and winter!

Replace or clean your furnace filter
It should be checked once a month and replaced or cleaned as needed. Some filters are reusable and are supposed to be taken out, washed with a hose and re-inserted. A dirty filter can lower the efficiency of the heating/cooling system, increase heating costs and cause fires.

Clean the kitchen exhaust hood and air filter
Keeping this clean of cooking grease will help keep a stovetop fire from spreading.

Check your electrical system
Look for burn marks at the main electrical panel; they can be a sign of arcing inside the panel, which can easily lead to a fire. Loose connections or damaged insulation can cause the arcing. Note: Only a qualified electrician should remove the front panel cover.

Trip and reset the circuit breakers regularly.

Remove any combustible materials such as paper boxes or flammable liquids from the area near the main electrical panel. Sparks caused by arcing inside the panel can ignite material stored nearby.

Check all electrical outlets for loose-fitting plugs they are an indication of a worn out receptacle. Worn receptacles should be replaced as they cause overheating and fires. Also check electrical outlets and switches to be sure they work properly. If any switches, outlets or receptacles do not work, have a qualified electrician determine the problem and fix it to avoid fires inside the walls of your home.

Install safety covers to help protect children from electrical shock. Any appliance or tool that gives even the slightest shock should be unplugged and checked by an electrician or repair shop.

Always have a multi-purpose fire extinguisher accessible
Make sure it is Underwriters Laboratories (UL) listed or Factory Mutual (FM) approved. Check the gauges to make sure they are charged and ready to use.

Make sure the light bulbs in all your fixtures are the correct wattage
The light fixture manufacturer recommends the correct wattage. If too high a wattage bulb is used in a light fixture, heat produced inside the fixture can lead to fire inside the fixture, ceiling or wall.

Consider installing a lightning protection system on your home
Read more at Lightning protection systems.

Protect all your electrical appliances from power surges and lightning
Read more at How to choose surge protection for your home.

Have a professional air conditioning contractor inspect and maintain your system as recommended by the manufacturer
Maintenance should include:
Cleaning the evaporator coil
Lubricating fans and motors
Tightening or changing the belts
Checking electrical safeties
Checking the drain pan for leaks
Testing the capacitors
Check the condensate drain
Test the crankcase heater
Calibrating the thermostat
Visually checking the wiring for potential short circuits
These steps can help decrease the chance of fire, save money by making the system run more efficiently and help prevent breakdowns.

Things you can maintain:
Check the condensate hose to be sure it is not blocked with algae.
Clean the outside condensing unit screen of leaves.
Listen for unusual noises.

Check for damage to your roof
Signs include missing, curling, cupping, broken or cracked shingles. Pooling or ponds of water that fail to drain from flat roofs may indicate low areas and inadequate drainage. Clean gutters of leaves and debris.

Repair all cracked, broken or uneven driveways and walks to help provide a level walking surface
This will help prevent guests and family members from slipping, tripping or falling.

Protect your home from sewer or drain back-up losses
Read more at Wet Basements.

Check all the fascia and trim for deterioration
These areas can become weathered and worn and may lead to potential water damage. Spring is a good time to power wash.

Check your water heater
If you have a gas-fired water heater, check to make sure it is venting properly. Light a match next to the vent and wave it out (don't blow it out). See if the smoke is pulled up into the vent. If it isn't, have a professional inspect and repair it. Otherwise, carbon monoxide and other combustibles can build up in the home.

Check around the base of your water heater for evidence of leaks

If your water heater is over 5 years old, it should be checked monthly for any leakage or rusting at the bottom. If water leakage or rust is found, the water heater should be replaced.

Check the shutoff valve at each plumbing fixture to make sure they function
Know the location of all valves and what equipment and water lines they serve. Teach all family members.

Clean the clothes dryer exhaust duct, damper and space under the dryer
Poor maintenance allows lint to build up in the exhaust duct and cause fire.

Replace all extension cords that have become brittle, worn or damaged
Exposed wires may cause arcing, which will produce heat and can start a fire. Care should also be taken to keep appliances and their power cords away from water or a heat source because this will damage the cord's insulation.

Inspect and clean dust from the covers of your smoke and carbon monoxide alarms
Read more at Smoke alarms save lives.

Don't forget to Spring Forward!

2011-03-10T14:54:00.004-05:00

Remember to move your clocks forward one hour this Sunday, March 13th at 2:00 a.m.

$2000 Tax Credit for First-time Homebuyers.

2011-03-06T22:09:00.007-05:00

Mortgage Credit Certificate (MCC)

What are the terms?

Home buyers who meet our qualifying income requirements, sales price, and first-time home buyer guidelines may be eligible for a Mortgage Credit Certificate (MCC). This federal tax credit was authorized by Congress to assist home buyers with moderate and low incomes.

While all homeowners can claim an itemized tax deduction for mortgage interest, you can go a step further with an MCC. An MCC reduces your tax liability, dollar-for-dollar, by a percentage of the mortgage interest you pay.

If you qualify for an MCC, you will be able to claim 30% of the interest you pay on your mortgage as a credit on your federal income taxes. You can save up to $2,000 per year on your federal taxes, money that can be put toward your mortgage payment.

An MCC can be used with almost any type of mortgage, including some adjustable rate mortgages.

Contact Team Hedges for the MCC tax credit in North Carolina.

Fine tune that blog! 10 tweaks to gain readers

2011-02-23T13:47:00.002-05:00

Blogs have gained authority as a communication format. They bring traffic to your website and strengthen your position as a thought leader. Give readers useful, original content and you'll quickly become a trusted brand.

But first you need to do all you can to pull readers in. Here's how:

1. Write a compelling headline. If the headline doesn't grab them, they won't go any further. Ask an intriguing question, offer a list or highlight a big benefit. Include at least one key word that relates to your topic.

2. Put in a photo. A photo stops people and can draw them in. Find free stock photos at stock.xchng and Flickr.

3. Start with a strong opening paragraph. Don't take a paragraph or two to get to your point. Make sure that first paragraph includes key words for good search engine optimization (SEO) and hints at what the post will tell readers.

4. Make content easy to scan. Scanning is the default approach to reading online. Use bold heads and subheads, bulleted lists and bold an entire sentence if it makes an important statement.

5. Make content easy to read. Short sentences. Short paragraphs. Like you're reading now.

6. Keep the post short. A post should not be longer than 400 to 500 words. If you have more to say, do a series of posts and ask subscribers to sign up.

7. Stick to the point. Say what you have to say and then stop. If there is a related idea you think of, write a follow-up post.

8. Keep it casual and friendly. A blog post isn't a business letter or an essay. Write like you talk. But watch out for buzzwords that make new readers feel left out.

9. Link to sites from words, not the actual URLs. If you include links, don't put in the whole URL address. Instead, make a word the live link that goes to the site when you click on it, like we did above in point #2. But check that your links work.

10. Make social sharing easy. Install buttons to give visitors a quick way to share your post on social sites.

Follow these pointers and you'll be maximizing your blog's potential to pull in new business.... Have a great month!

Fannie Mae HomePath Renovation Loan

2011-02-21T19:58:00.005-05:00

Fannie Mae offers special mortgage financing on their foreclosed properties to help buyers with necessary rehab work.

No minimum amount of renovation and no Consultant needed
Provides a conventional alternative to the FHA 203k with larger amounts of financing (up to $417,000.00)
Offers greater flexibility on the types of repairs that can be financed
Allow the financing of renovation on investment properties and second homes
Newly purchased homes can be renovated before the borrower moves in
Provides an outlet to purchase unfinished new construction foreclosures
No required improvements (must meet minimum appraisal standards)
Luxury items such as swimming pools, spas and saunas are allowed
No lump sum upfront mortgage insurance like with the FHA 203K Rehab loan
FHA allows for only one loan at a time; can have multiple Homestyle loans
Those are just a few of the varying benefits of Fannie Mae Homestyle renovation financing. For uses and benefits contact us today!

Get a Jump on Your Taxes...

2011-02-10T10:02:00.003-05:00

How to get organized for filing that return!
Nobody takes in more money than the Internal Revenue Service -- and they do it without giving us any pleasure for our efforts! We can't make doing your taxes fun, but we can give you some tips to take the pain out of tax preparation. The key is to do a little advanced planning and organization. And if you know what information you'll need, it will speed up the process of doing your return -- and getting your refund!
Organize your papers and files. It's a good idea to have a system for managing your finances. It doesn't matter if it's simple or sophisticated, just that it's an approach you'll actually use. Many people like a basic three-folder system they keep up with year-round.
* Folder 1–Income: Salary, dividends, earnings, distributions, checking account interest; and don't forget the 1099 Form you got when you redeemed that savings bond.
* Folder 2–Expenses and Deductions: Make files for major categories like contributions, medical, and business expenses; put in canceled checks, bills, statements and receipts, mortgage statements, investment-related expenses, medical bills, child-care costs, and non-reimbursed business expenses for things like gas, food, and lodging.
* Folder 3–Investments: This can include investment account statements, 1099 Forms, and K-1 Forms for certain trusts or partnerships; ask a CPA or Financial Advisor for advice, as you should with all tax questions..
There are also some easy-to-use software programs. Just go online, search "tax preparation programs" and check out what's available.
Don't procrastinate. Get started now! Putting off preparing your tax return until April 14 is never a good idea. There 's a greater possibility you'll make mistakes. And if you're working with a tax preparer, that person may not have time to complete your return by the deadline. Even if you file for an extension, you'll still have to pay what you owe by April 15 to avoid penalties and interest. And if you're due a refund, you'll have to wait.
Use a professional. If you're overwhelmed just organizing your papers, hire a professional to do your return. This is an especially good idea if your tax situation is the least bit complex, including lots of investments, the purchase or sale of a business, or a 1031 exchange of property that defers capital gains or losses. Ask a CPA or Financial Advisor for advice.
Get free help from the IRS. Go to www.irs.gov and download IRS Publication 17 (2010): Your Federal Income Tax, available in both English and Spanish. This is the authority for answers to lots of tax questions. There's also a toll-free IRS TeleTax service at 800-829-4477 with recorded messages on lots of topics. Any other questions can get answers at the IRS help line: 800-829-1040.
Search around the IRS website. You'll find a truly mammoth site at www.irs.gov. It offers forms, instructions, and publications to download; you can find information on tax law, plus answers to frequently asked tax questions. The best way to navigate your way through all this is to click on "Site Map", "Individuals", and then "1040 Central" for a more manageable range of options.
So get started now! And good luck!

WINTER HOME SAFETY TIPS...

Every home should have both smoke detectors and a carbon monoxide detector installed. But they can't protect you unless their batteries work. It's a good idea to change detector batteries when you reset your clocks in the Spring and Fall. If you didn't do it last November, do it now! Also check manufacturers' recommendations to see if the units are due for replacement, which is necessary from time to time.
If you live in a seasonally cold part of the country, check that vents are not blocked by accumulated snow and ice; your furnace and some appliances like the clothes dryer vent to the outside of your house, through the roof, foundation, or siding.

Wherever you live, periodically check your furnace room and remove flammable items stored near your heating system.

Feel free to call or email us about any matters, particularly those relating to home financing or refinancing. We're glad to talk further.... Have a great day!

Things to know about buying a home now...

2011-01-13T16:14:00.000-05:00

With the start of the new year, there's lots of talk about where home prices, mortgage rates and home sales in general are headed. If you're thinking about buying a home in the near future, here are some points to ponder:
Prices are now at all-time lows. According to the National Association of Realtors (NAR) housing affordability index, home prices are more affordable now than during any other time in our history going back to 1970. In addition, this time of year is especially good for buyers, because activity has slowed down. The school year in full swing and the holiday season cuts the number of active buyers, so sellers are especially motivated to make a deal.
It's a good time to buy if you plan to stay awhile. A home is still a good investment, just don't expect the house you buy today to deliver a big jump in value right away. The NAR's chief economist says, "Despite very attractive affordability conditions, a housing market recovery will likely be slow and gradual...." But if you plan to stay in your home more than a few years, your investment should beat inflation. According to Department of Labor statistics, for the ten years from 7/1/2000 to 6/30/2010, the average home increased in price 3.4% per year in the US. Inflation measured by the CPI (Consumer Price Index) went up 2.4% per year in the same period.
Mortgage rates are still at historic lows. National average mortgage rates are at their lowest levels in history. You may have heard about rates inching up a little lately, but "inching" is truly the operative word. National average mortgage rates are still below where they were at the start of last year. The important thing to remember is that lower rates increase your buying power by allowing you to qualify for a larger loan amount.
You're in the driver's seat. It's still a buyer's market, so many sellers are prepared to negotiate to close the sale and move on with their lives. Price and appliances for instance are all things that can be up for discussion – you just have to test the waters. But remember, when home prices stabilize and start to head up, sellers won't be in the same bargaining mood. At that point, sellers could regain the upper hand as buyers compete with each other to purchase before prices go up more.
Don't forget the tax benefits. Buying a home gives you some nice tax breaks. Interest on your mortgage and real estate taxes are both tax deductable. If you pay points to reduce your loan's interest rate, that money may also be deductible. Please consult with a tax advisor to find out how these deductions apply to your circumstances.
You want choice? Now you've got it! In many areas of the country, home buyers are feeling like kids in a candy store. There are many nice options to explore. Just don't get overwhelmed. Figure out what you want in a home, a neighborhood that's right and what you can afford to pay – then go enjoy the shopping experience.
It's easy to get started. The first thing to do is to get qualified for a mortgage. This tells you how much money a lender is willing to loan you, so you know exactly what you can afford. Being qualified also strengthens your position when making an offer because the seller knows you're a pre-approved borrower. Please contact us and we'd be happy to help you through this process.
There may never be a better time to buy. One thing's for sure, mortgage rates and home prices won't stay at these historic levels forever. When you find a home you fall in love with, don't let it get away. Remember, you want the best home, not just the best deal, and holding off on a purchase for things to improve, could lose you the home of your dreams.

Feel free to call or email us about these or any matters relating to home financing or refinancing. We're glad to talk further about any of these topics... Have a great day!

Congress has once again extended legislation that makes mortgage insurance tax deductible for many Americans

2011-01-07T13:29:00.000-05:00

Congress has once again extended legislation that makes mortgage insurance tax deductible for many Americans. The new legislation ensures the tax deductibility of mortgage insurance on purchase and refinance loans for qualified borrowers through 2011.

The legislation itself is no different than what was passed in 2007. MI premiums are still fully deductible for taxpayers earning up to $100,000, and partially deductible for those with incomes between $100,000 and $109,000. The only difference is that the deduction now applies to policies written through the 2011 calendar year.

Extending MI tax deductibility is an important win for many reasons:
• Tax relief is much needed in a time of struggling economic recovery, and continues to help protect the dream of homeownership for many.
• Mortgage insurance is not only safe and predictable, but it's also cancelable and packed with features borrowers want today, including Genworth's Job Loss Protection, Homeowner Assistance Program and homebuyer education discounts.
• Consumers today have an increased understanding of how mortgage insurance can benefit them, and the extension of MI Tax Deductibility will help continue that trend.

More about money – some interesting info...

2010-12-10T15:06:00.000-05:00

Money might not buy happiness, but it does make the world go round and everybody seems to want to get their hands on it. Here are some intriguing details about our currency:
What's the biggest bill ever issued? The $100,000 Gold Certificate of 1934. President Woodrow Wilson's portrait was on these bills, which were only used by Federal Reserve banks and never went into general circulation.
How much of our money is in dollar bills? In fiscal year 2009, 42.9% of the bills printed were $1 notes.
How long does money last? Money may not stay long in your wallet, but it does hang around for a while out in the world. The government reports these average life spans for the various bills: $1 - 42 months; $5 - 16 months; $10 - 18 months; $20 - 24 months; $50 - 55 months; and $100 - 89 months. When bills are too worn, they're pulled from circulation and replaced. Coins last about 25 years.
How many pennies would it take to stretch across the country? It takes 84,480 pennies to cover a mile and over 250 million of them to go coast to coast. That adds up to over $2.5 million.
Did any bill ever have a picture of a woman? Martha Washington's portrait was on the face of the 1886 and 1891 $1 Silver Certificates and on the back of the ones issued in 1896.
Has a portrait of an African American ever been on U.S. currency? Commemorative coins in the 1940s had pictures of George Washington Carver and Booker T. Washington and a recent one honored Jackie Robinson. No paper money has had an African American's portrait, but the signatures of four African American Registers of the Treasury have been on our bills – Blanche K. Bruce, Judson W. Lyons, William T. Vernon, and James C. Napier – as well as the signature of one African American woman, Azie Taylor Morton, the 36th Treasurer of the United States, who served from 1977 to 1981.
What kind of paper do they use to print money? They don't. Our bills are a 75% cotton - 25% linen blend with silk fibers throughout. This is far more durable than paper when wet.
How tough is our money? Government tests show our bills can be folded forward and backward 4,000 times before they tear.
What is that eye at the top of the pyramid? The "all-seeing eye" is a symbol of divine providence.
E Pluribus Unum – what's it mean? This Latin motto means, "Out of many, one." It can be freely translated as, "Many uniting into one." It has been on the Great Seal of the United States since 1782, but didn't wind up on our money until 1902.
Is a torn bill still worth something? The U.S. Bureau of Engraving and Printing (BEP) says on their website: "The BEP redeems partially destroyed or badly damaged currency as a free public service....The Office of Financial Management, located in the BEP, uses experts to examine mutilated currency and will approve the issuance of a Treasury check for the value of the currency determined to be redeemable."
Our final point about money has to do with saving some on your mortgage. Please note that mortgage interest rates are still at historically low levels and many observers think there may never be a better time to purchase or refinance a home than now. Feel free to contact us about any matters relating to home financing or refinancing.
Most importantly, we wish you and your loved ones all the best this holiday season – and a happy and prosperous New Year!
... Have a great day!

Home staging tips, mortgage rate news and why people are buying!

2010-11-11T15:18:00.002-05:00

Who stages their homes? Owners who want to sell in less time for more money, that's who. A recent study of realtors reported that 91% recommend sellers have their homes staged before showing them. Here's what to do:
Check the curb appeal. Mow the lawn, rake the leaves, shovel the snow. Don't go crazy with landscaping but consider a potted or hanging plant as you approach the front door. Clean the front door, railing and deck. It's cheaper than painting and will tell you if painting is needed.

Clear out the clutter. Take one room and closet at a time and remove everything you don't use or won't need in the next few months. Donate it to charity, let a friend re-use it or rent a storage space for things you really can't part with.

Edit the furniture. Many rooms look better minus one piece of furniture. If you see that's the case, put the extra easy chair in storage along with your clutter.

Paint to please. Walls that need to be painted should be done in neutral colors. And yes, walls with strong or vibrant colors need to be painted.
Nix what you notice. Walk up stairs, down halls and into every room and see what draws your eye. Chipped paint, old nail holes, peeling wallpaper. These are all buyer turn-offs. Fix them.

Hire a handyman. Have a professional tackle any of your bigger issues such as stuck closet doors, dripping faucets, re-facing the kitchen cabinets and updating the countertops.

Keep it clean. If you can, hire a professional service to make the place spotless. Then take a half hour each day to keep it that way.

Light, air and flowers. Before your home is shown, open all curtains, turn on some lights and air it out for 10 minutes. Fresh flowers are a nice touch in a couple of places.
If you still think your home could look better, consider hiring a professional home stager. Many sellers find staging services are worth it.
The Fed and mortgage rates
The Federal Reserve, our nation's central bank, recently announced they'll be buying $600 billion worth of Treasury bonds from now till the end of June 2011. Some say this may lower mortgage interest rates. Others feel the Fed's actions could cause rates to edge up. Several forecasts expect higher mortgage rates by the end of next year.

People looking to buy or refinance should keep in mind that we already have historic, incredibly low interest rates. The fact is, there may never again be a better time to purchase or refinance a home than right now.
10 reasons to buy
If you or someone you know is thinking about buying a home in today's market, check out this piece from the Wall Street Journal.
As always, feel free to contact us about any matters relating to home financing or refinancing.... Have a great day!

Walk-aways Leading to Big Changes for All Borrowers' Credit Scores--Washington Post

2010-11-08T16:18:00.001-05:00

By Kenneth R. Harney
Friday, November 5, 2010; 9:01 AM

With foreclosures soaring - and homeowners with unblemished payment histories abruptly walking away from their houses with no warning to lenders - the two major producers of credit scores have begun changing how they evaluate consumers' risks of default. The revisions could touch you personally the next time you apply for a loan.

This Story
If you're facing foreclosure in the District, help might be on the way
An opening for D.C. foreclosure challenges
Walk-aways leading to big changes for all borrowers' credit scores
50-state foreclosure probe loses several influential voices after midterm elections
Complete coverage: Foreclosure system in chaos
Interactive tools: How much home can I afford?
View All Items in This Story
View Only Top Items in This Story
Last month, Fair Isaac, the developer of the FICO score that dominates the mortgage field, and VantageScore Solutions, a joint venture by the three national credit bureaus and marketer of the competing VantageScore, outlined modifications they are making to handle the vast credit disruptions caused by the housing bust, the recession, high unemployment and behavioral changes by consumers.

Overall, credit industry experts agree, consumer creditworthiness has deteriorated in the United States since 2006, especially among what used to be considered the credit elite, people with the highest scores. For example, a study earlier this year by VantageScore found that the probability of serious delinquency, defined as nonpayment for 90 days or more, had increased by 417 percent among "super-prime" borrowers between June 2007 and June 2009. Default risk during the same period rose by 406 percent for the second-highest rated category of "prime" consumers, and nearly doubled for those at the "near prime" scoring level.

"The driving force behind [the score revisions]," said Sarah Davies, VantageScore's senior vice president for analytics and research, is the "significant change in consumer credit repayment behavior" that began during the housing bust and recession.

Not only are borrowers who previously were rated outstanding credit risks far more likely to default today, she said, but many homeowners are defying long-standing credit industry assumptions by going delinquent on their first mortgage payments while simultaneously continuing to pay their credit card balances and second mortgages on time. Strategic defaults - walkaways - by high-score borrowers also have been an unexpected and shocking development, she said.

To adjust its statistical models to these new realities, VantageScore says it conducted intensive research on 45 million active credit files obtained from the databases of its joint-venture partners, Equifax, Experian and TransUnion. The research examined the same files, with personal identifiers removed, during set periods between 2006 and 2009 to capture emerging behavioral patterns associated with defaults on various types of credit accounts. The resulting VantageScore 2.0, which is expected to be rolled out nationwide to lenders in January, focuses on the subtle warning signs of credit stress that might have been missed earlier. And it rewards or penalizes consumers with higher or lower scores than they would have received before.

Joanne Gaskin, director of mortgage scoring solutions for Fair Isaac, said her company's new FICO 8 Mortgage Score is based on similarly exhaustive research into consumer credit behavior changes over the past four years. When used by a lender to rate the risk of new applicants or existing mortgage customers, Gaskin says the Mortgage Score is likely to be anywhere from 15 to 25 percent more accurate in detecting signs of future default compared with the standard FICO model.

Although she would not discuss proprietary details about the early warning signs the new score monitors, Gaskin said they include broad patterns such as the following:

Say a borrower with a 720 FICO score might have average balances on a first mortgage, home equity lines and other accounts that are higher than the norms pinpointed by the revised scoring software. A 720 FICO is considered a good score by most mortgage lenders, often qualifying for favorable rates and terms.

However, the same applicant might rate a 680 FICO or lower if the lender used the new Mortgage Score. The lender would then have a choice: Reject the applicant, quote a higher interest rate on the mortgage or require a larger down payment.

Gaskin said the reverse could also occur: The FICO 8 Mortgage Score could come in higher than the standard FICO - indicating lower risk for the future - in situations where formerly troubled borrowers manage to put themselves back on a healthier credit track.

Experts in the credit industry say the new scoring efforts by Fair Isaac and VantageScore should prove to be a net positive for housing and the mortgage industries if they can do what they claim: spot subtle risk patterns and nascent hints of improvement.

But as a mortgage applicant you should know that your next score might not look anything like the score you thought you had. You might end up getting a better deal - or one worse than you wanted - when lenders quote rates and terms.

kenharney@earthlink.net

http://www.washingtonpost.com/wp-dyn/content/article/2010/11/05/AR2010110502133.html

Benefits of Assumable FHA and VA Loans

2010-10-26T11:45:00.004-04:00

“All FHA loans are assumable when processed using HUD's guidelines.” This also applies to VA loans.
Why is this important? Think about the real estate market after the 4% interest rates go away? A seller with a 4 something rate today will be in a prime position to sell a starter home with this super low assumable rate once rates go back to more traditional levels. It will also be helpful for move up buyers. It would be hard to leave a 4.5% rate to buy a new home with a 6% rate. However, a buyer moving up to a new FHA home with an assumable loan* can benefit. Also consider refinancing with the new low rates, so when the time comes to move you have the lowest assumable rate on the block. Rates are at all time lows, don't miss out or lose an opportunity down the road!
*FHA Limits for Wake, Johnston, and Franklin counties are $295,000. Orange, Chatham, and Durham are $334,650.
Prime Lending is one of the nation’s premiere FHA lenders.

Your Fall & Winter Maintenance Checklist

2010-09-21T14:58:00.003-04:00

The best way to avoid expensive repairs in the future is to keep up with home maintenance today. Here's what to do this time of year. Check the items that apply to your home and locale.
Tune up that furnace. Hire an HVAC professional and make sure everything's checked–filters, chimney exhaust, blower, fuel connections; the works. Inspect furnace filters monthly and change when dirty. Install a programmable thermostat to save on energy bills, but if you have a heat pump, be sure the thermostat has been especially designed for that system.

Shut down the evaporative cooler. If you use an evaporative (swamp) cooler for air conditioning, turn off the water supply, drain the lines so they don't freeze, clean mineral buildup in the tank with vinegar and a brush, and unplug the pump. Put a plastic or canvas cover over the cooler and attach it with bungee cords.

Close the storm windows. Check that the outer pane is up and the inner one down and that both are sealed against the frame.

Insulate a whole-house fan. If you use one to cool your home in summer, close it up with an insulated box or cover for the winter. This prevents heated air from entering the attic, which can create moisture, causing mold and stains on the ceiling below. You can make a foam box yourself using duct tape, weather-stripping, and 2-inch-thick polystyrene foam.

Test the sump pump. If you use one to get water out of your basement, check to see if it's working. If it has a float valve, raise the valve to see if it turns on. If it's water-activated, run water from a hose into the sump to see if it works. For problems, check connections, reset button, and circuit breaker before you call in a plumber or electrician.

Inspect the roof. Look at roof shingles as well as the flashing around chimneys and vents. You may have to call in a roofing contractor to seal gaps and replace shingles. Also, if your area gets a lot of moisture and moss forms on the roof, treat it with moss-killing liquids or granules. Be sure to get the moss killers for roofs and not lawns and follow directions.

Clean the gutters. Leaves and other debris left in your gutters can damage them and push freezing water under roof shingles. Dirt can even collect in covered gutters, so lift covers and clean them too.

Weather-strip and caulk. Look around the house outside and caulk any gaps where window, door, and corner trim meets siding. Remove and replace any old weather-stripping around doors and windows.

Put away the lawn and garden equipment. In cooler climates, put away garden tools, hoses, nozzles, and patio furniture you won't be using till the spring, so they're not damaged by snow and ice. Run the lawn mower until the gas tank is empty.

Winterize lawn sprinkler systems and disconnect hoses. If the temperature goes below freezing in your area, water left in hoses or pipes can freeze and burst them. Drain water from lawn irrigation systems, which may have to be done by a professional. If outside faucets are not self-draining, turn off water at the shutoff valve inside. Aerate and overseed lawn for a lush lawn in spring.

Prune trees. Once leaves are gone, cut back trees or bushes near the house where snow may cause branches to rub against the roof or siding.

Cover an outside AC unit. If it's under trees or roof runoff, put a plywood sheet and drop cloth over it. Don't seal off the unit, which traps moisture and creates a nice little home for rodents.

Check drainage around the house. Where ground meets foundation, make sure soil isn't touching any siding and that it slopes away, dropping 6 inches in the first 10 feet. If you have a surface or sub-surface drainage system, check for blockage if you see pooling water when it rains. Remove debris or call a landscape contractor for repairs.

Spend a weekend or two checking up on these items and you'll save energy and catch problems before they cost a ton of money to fix. Good luck! As always, please feel free to contact us at any time about any matters relating to home financing or refinancing.

... Have a great day!

Did You Know This About FHA?????

2010-09-20T18:26:00.007-04:00

At TEAM HEDGES we can approve your FHA home loan with open collections! And there is no ceiling--providing your credit score is at or above 620 and we get a DU approval. Most lenders have a cap of $3000 or $5000 or even require all collections to be paid off in full.

The same goes for debt-to-income ratio. We will go as high as DU approves. Many banks are capped at 50% or even 45%. This can make a huge difference for couples who have two incomes but need to base their qualification on a single income for various reasons.

We use “Credit Expert” an online tool to help buyers who are a tad short of the required 620 FICO (middle score) get there as quickly as possible.

Don't forget, we can provide an escrow holdback for seller paid repairs or upgrades that can be completed in less than 30 days. This way sellers can allow a prospective buyer choose his or her upgrades or needed repair providers! The buyer gets everything to their personal taste and upgrades can be part of the final negotiation.

We all know how nervewracking buying a home can be, so don’t add unnecessary stress. Make Team Hedges at Prime Lending your first (and last) stop.

Here are a couple of charts that help show why now might be a great time to buy!

2010-09-16T14:10:00.000-04:00

Homebuying MarketTrends

10 MARKETS MOST LIKELY TO APPRECIATE

2010-09-15T08:11:00.000-04:00

Forbes magazine turned to real estate research firm Local Market Monitor to figure out which markets have the greatest likelihood of price appreciation because they offer a mix of jobs weighted toward growth industries.

These are the top markets, the research company concludes:

1. Raleigh-Cary, N.C.
2. McAllen-Edinburg-Mission, Texas
3. Austin-Round Rock, Texas
4. Nashville-Davidson-Murfreesboro-Franklin, Tenn.
5. San Antonio, Texas
6. Colorado Springs, Colo.
7. Albuquerque, N.M.
8. Denver-Aurora-Broomfield, Colo.
9. Springfield, Mo.
10. Indianapolis-Carmel, Ind.

Source: Forbes, Francesca Levy (09/13/2010)

Big changes as of October for FHA--no time to delay

2010-08-09T12:36:00.002-04:00

http://www.thinkbigworksmall.com/mypage/archive/1/52542/

HUD has announced their intention to
• Lower the Up Front MIP from 2.25% to 1% AND
• Increase the Annual (monthly) MIP From .50 - .55% to .85 - .90% depending on LTV
on loan terms greater than 15 years.

This is scheduled to be effective for case numbers issued on October 4, 2010 pending being signed by our president.

The results of this change is:

Assuming
$100,000 base loan

UFMIP
$101,000 using the new MIP in the mortgage amount
$102,250 using the old MIP in the mortgage amount

Annual MIP
$900.00 ($75.00 Monthly) New Annual MIP based on $100,000 base loan
$550.00 ($45.83 Monthly) Old Annual MIP based on $100,000 base loan

At 5% 30 years assuming 96.5% LTV

$617 New
$595 Old

A borrower will need an estimated $75-80 more in monthly income or $900 more per year to qualify per $100,000 in loan amount.

This is cutting edge news and a more formal announcement will be made, however, we wanted you to know about this ASAP so that you could react to questions from your partners.

We are still unsure how refunds on MIP will be treated for refinances. More to come.

You can read more here: News Letter

Know Your Options

2010-08-04T18:28:00.001-04:00

If you know anyone struggling with their mortgage payments, share this link so they can check out their options.

http://www.knowyouroptions.com/options-finder

Second Quarter 2010 Homeownership, Rental and Homeowner Vacancy Rates

2010-08-04T16:05:00.000-04:00

By Selma Lewis, Research Economist

Homeownership rates

According to Census Bureau data released on Tuesday, July 27, 2010, the national homeownership rate in the second quarter 2010 was at 66.9 percent. Since reaching its peak in the second quarter of 2004 when it was 69.2 percent, the national homeownership rate has been slowly falling. Today’s rate is the same as the homeownership rate in the fourth quarter of 1999.

Between the first and second quarters of 2010, the homeownership rate fell 0.2 percentage points, while between the second quarters of 2009 and 2010, the rate fell 0.5 percentage points, or half a percent.

In the second quarter of 2010, Washington, DC had the lowest homeownership rate, 44.7 percent, followed by New York, at 53.9 percent, Hawaii (55.7 percent), California (56.3 percent), Nevada (59.9 percent), and Rhode Island (63.7 percent). Figure 1 illustrates homeownership rates for all the states. On the other end of the spectrum, West Virginia had the highest homeownership rate, with 78.7 percent of the population owning their residence. South Carolina ranks second with 75.4 percent homeownership, New Hampshire is third with 74.8 percent, Michigan is fourth with 74.5 percent, and Delaware is fifth with 74.0 percent. West Virginia is also had the highest rate of homeownership among all the states in the first quarter of 2005 at 82.4 percent.

In most states, the last ten years were the most important in terms of increasing homeownership rates. However, there are six states where the rates peaked prior to the year 2000 and have not reached the same level since: Alaska, North Carolina, Pennsylvania, Kentucky, South Carolina, and Maine. Surprisingly, also, some states showed new peaks in homeownership rates during 2008, such as Massachusetts, Louisiana, New Hampshire, and Utah. Since then, however, the rates have dropped in most of those states. New Hampshire is the exception. The homeownership rate peaked in the third quarter of 2009 in New Hampshire.

Since the peaks, the decrease in homeownership ranged from 0.6 percent points in Texas to 8.2 percent points in Virginia. Other states with the largest drops include Alabama decreasing 8.1 percentage points since the fourth quarter of 2004 and Mississippi decreasing 7.5 percentage points since the second quarter of 2005. On average, homeownership rates have fallen by 4.7 percentage points since their peaks. The states showing the smallest falls are Texas, New Hampshire, Massachusetts, Rhode Island and South Dakota.

Homeowner Vacancy Rates

In the second quarter of 2010, the national homeowner vacancy rate was 2.5 percent. Between the first and second quarter of 2010, the homeowner vacancy rate decreased by 3.85 percent, from 2.6 percent to 2.5 percent. However, from a year ago, the vacancy rate nationally is unchanged.

Over the past decade and a half, the homeowner vacancy rate ranged between 1.5 and 2.7 percent. It reached the highest level of 2.9 percent in first quarter 2008.

In the second quarter of 2010, highest vacancy rates were seen in Florida (4.4 percent), Nevada (4.4 percent), North Carolina (3.9 percent) and Georgia (3.7 percent). The lowest rates were in Massachusetts (1.0 percent) and South Dakota (1.2 percent). Figure 2 illustrates owner vacancy rates for all the states.

In general, homeowner vacancy rates were higher after the year 2003 than they were before. In 2008, homeowner vacancy rates peaked for the largest number of states. Nevada is the state with the largest change in the rate from bottom to peak. Nevada’s lowest rate was in the second quarter of 2000 at 1.1 percent, while it peaked in the second quarter of 2008, at 6 percent.

Between the first and second quarter of 2010, Georgia and West Virginia showed the largest increases in homeowner vacancies, while the District of Columbia and Arizona had the largest drops. Since the second quarter of 2009, Idaho and West Virginia saw the largest increases in homeowner vacancies, increasing 1.3 and 1.1 percentage points respectively. The District of Columbia, again, and Montana showed largest drops in vacancy rates, each dropping 2.2 percentage points over the year.

State Rental Vacancy Rates

In the second quarter of 2010, the national rental vacancy rate was 10.6 percent, indicating that one out of ten rental units is vacant. This is 4.5 percentage points lower than the 11.1 percent peak in the third quarter of 2009. The first two quarters of 2010 have not seen any change in the rental vacancy rate.

The states with the highest vacancy rates in the second quarter of 2010 include Florida (15.9 percent), South Carolina (15.1 percent), Nevada (14.7 percent), Mississippi (14.4 percent), Texas (14.1 percent), and Indiana (14.0 percent). The states with the lowest rental vacancy rates include Vermont (5.1 percent), New Hampshire (5.1 percent), Alaska (5.5 percent), Oregon (5.6 percent), and North Dakota (5.8 percent). See Figure 3 for rental vacancy rates for all the states.

The rental vacancy rate ranged 3.6 percentage points, between 7.5 percent in the first quarter of 1997, and 11.1 percent in the third quarter of 2009 when it reached its highest level. The large increase in the rental vacancy rate in 2009 is the sharpest one since 1996. The time between 2002 and 2004 also saw some continuous increases in the rate of rental vacancy, but the increases were smaller than those seen in 2009. Since then, the rental vacancy rate dropped to 10.6 for the first and second quarter of 2010.

Similarly to the homeowner vacancy rates, the rental vacancy rates for the majority of the states were higher in the second part of the last decade then they were before the year 2000.

Between the first and second quarter of 2010, some states saw a change in their rental vacancy rates. The largest decreases in rental vacancy rates were in Wyoming (-5.5 percentage points), Mississippi (-5.3 percentage points), and Arizona (-3.3 percentage points); while the largest increases in rental vacancies were in Indiana (4 percentage points), Kentucky (3.3 percentage points), and Montana (2.4 percentage points).

Since the second quarter of 2009, the states with the largest increases in rental vacancy rates include Louisiana (3.1 percentage points), and Connecticut and South Dakota (3.0 percentage points each). The largest decreases were in Arizona (-5.2 percentage points), Colorado (-4.8 percentage points), and South Carolina (-4.1 percentage points).

Market Update

2010-08-03T12:17:00.000-04:00

email me now

Jean Hedges
Senior Loan Officer
5400 Glenwood Ave., Suite 215
Raleigh, NC 27612
Phone: (919) 334-9030
Mobile: (919) 961-6915
Fax: (866) 460-7667

For the week of August 2, 2010 – Vol. 8, Issue 31

>> Market Update

INFO THAT HITS US WHERE WE LIVE Last week began nicely with June New Home Sales UP 23.6% to an annual rate of 330,000, well ahead of expectations. This was a sharp rebound from May when New Home Sales sank to record lows not seen since 1963. This volatility of course is all about the homebuyer tax credit (requiring a contract by April 30 and a closing by June 30, now extended to September 30). Consequently, new homes sold at a 422,000 pace in April, fell to a 267,000 pace in May, then went to 330,000 in June.

Demographic trends say sales should continue to rebound, as we eventually need to sell new homes at a 950,000 annual rate to meet population growth and replace teardowns. The supply of unsold new homes is now down to 7.6 months, just above the ideal 6-month level. Actual inventories are down to 210,000, their lowest level since 1968, when there were 35% fewer people around.

We also saw that home prices rose 4.6% in May, year-over-year, as tracked by the Standard & Poor's/Case-Shiller National Home Price Indices. The 20-city index was UP 1.3% over the prior month, with 19 of the 20 metros showing gains during that period.

>> Review of Last Week

A HOT MONTH, JULY... The trading month on Wall Street ended Friday with the markets really heated up for July. The Dow Jones Industrial Average was UP 7.1% for the month, while the broadly based S&P 500 finished UP 6.9%. This was the first positive month for U.S. stocks since April. May and June had investors worrying over China's attempts to slow its growth and a European debt crisis which still hasn't had much impact in the U.S.

The week had a few negatives to please the bears. For example, the Conference Board's Consumer Confidence Index went to 50.4 in July, its second monthly decline. Yes, consumers are concerned about jobs and the pace of recovery, but the fact is, the economy is growing and businesses are making profits, which they will ultimately invest in more jobs. Gloomy types also jumped on the 1.0% drop in Durable Goods for June, yet "core" capital goods (take out defense and volatile aircraft shipments) were UP 0.2% -- their ninth gain in the past ten months!

But the biggest encouragement came from strong second-quarter corporate earnings. With about two-thirds of the S&P500 companies reporting, Thomson Reuters says Q2 operating earnings are on their way to a 36% gain, with revenues UP 9% compared to a year ago. Friday, advanced Q2 GDP came in with real GDP expanding 2.4% annually, UP 3.2% in the last year. So much for the "double-dip" recession. The week ended with the Chicago PMI registering another monthly increase for Midwest manufacturing and University of Michigan Consumer Sentiment also UP from the month before.

For the week, the Dow ended UP 0.4%, to 10465.94; the S&P 500 was down 0.1%, to 1101.60; and the Nasdaq was off 0.7%, to 2254.70.

Even though July was a good month for stocks, the final week was fairly flat. This sent investors to bonds, bolstering prices. The FNMA 30-year 4.0% bond we follow gained 66 basis points for the week, ending at $102.41. Not surprisingly, Freddie Mac's weekly survey of conforming loans showed national average rates for conforming mortgages down for the sixth week in a row, some hitting record lows.

>> This Week’s Forecast

THE FED'S FAVORITES...The two things the Fed watches most are inflation and jobs. As long as jobs lag in the recovery, the Fed wants to keep rates down to encourage the economy. But with all the cheap money around, if inflation picks up, the Fed will start hiking rates. Tuesday's PCE readings are expected to show inflation is still not a problem. Friday, we get July's Employment Report, with payrolls forecast to be down, but by a smaller number than in June, and the Unemployment Rate remaining around 9.5%.

Tuesday's June Pending Home Sales are expected to be off slightly from their May drop following the expiration of the homebuyer tax credit. Q2 corporate earnings reports continue, including Dow components Procter & Gamble, Pfizer, and Kraft.

>> The Week’s Economic Indicator Calendar

Weaker than expected economic data tends to send bond prices up and interest rates down, while positive data points to lower bond prices and rising loan rates.

Economic Calendar for the Week of August 2 – August 6

Date	Time (ET)	Release	For	Consensus	Prior	Impact
M Aug 2	10:00	ISM Index	Jul	54.2	56.2	HIGH
Tu Aug 3	08:30	Personal Income	Jun	0.1%	0.4%	Moderate
Tu Aug 3	08:30	Personal Consumption Expenditures (PCE)	Jun	0.0%	0.2%	HIGH
Tu Aug 3	08:30	Core PCE Prices	Jun	0.1%	0.2%	HIGH
Tu Aug 3	10:00	Pending Home Sales	Jun	–5.0%	–30.0%	Moderate
W Aug 4	10:00	ISM Services Index	Jul	53.0	53.8	Moderate
W Aug 4	10:30	Crude Inventories	7/31	NA	7.31M	Moderate
Th Aug 5	08:30	Initial Unemployment Claims	7/31	455K	457K	Moderate
Th Aug 5	08:30	Continuing Unemployment Claims	7/24	4.530M	4.565M	Moderate
F Aug 6	08:30	Average Workweek	Jul	34.1	34.1	HIGH
F Aug 6	08:30	Hourly Earnings	Jul	0.1%	–0.1%	HIGH
F Aug 6	08:30	Nonfarm Payrolls	Jul	–87K	–125K	HIGH
F Aug 6	08:30	Unemployment Rate	Jul	9.6%	9.5%	HIGH

>> Federal Reserve Watch

Forecasting Federal Reserve policy changes in coming months The big surprise for economists would be if the Fed touched rates at all from now to November. The central bank first wants to see the economy growing at a far faster rate, with payrolls back on the rise. Note: In the lower chart, a 1% probability of change is a 99% certainty the rate will stay the same.

Current Fed Funds Rate: 0%–0.25%

After FOMC meeting on:	Consensus
Aug 10	0%–0.25%
Sep 21	0%–0.25%
Nov 3	0%–0.25%

Probability of change from current policy:

After FOMC meeting on:	Consensus
Aug 10	<1%
Sep 21	<1%
Nov 3	<1%

This e-mail is an advertisement for Jean Hedges. The material provided is for informational and educational purposes only and should not be construed as investment and/or mortgage advice, or a commitment to lend. Although the material is deemed to be accurate and reliable, there is no guarantee of its accuracy. The material contained in the newsletter is the property ofPrimeLending, A PlainsCapital Company and cannot be reproduced for any use without prior written consent. It is designed for real estate and other financial professionals only. It is not intended for consumer distribution. The material does not represent the opinion of PrimeLending, A PlainsCapital Company. © 2010 PrimeLending, A PlainsCapital Company. Trade/service marks are the property of PlainsCapital Corporation, PlainsCapital Bank, or their respective affiliates and/or subsidiaries. Some products may not be available in all states. This is not a commitment to lend. Restrictions apply. All rights reserved. PrimeLending, A PlainsCapital Company (NMLS no: 13649) is a wholly-owned subsidiary of a state-chartered bank and is an exempt lender in the following states: AK, AR, CO, DE, FL, GA, HI, ID, IA, KS, KY, LA, MN, MS, MO, MT, NE, NV, NY, NC, OH, OK, OR, PA, SC, SD, TN, TX, UT, VA, WV, WI, WY. Licensed by: AL State Banking Dept.- consumer credit lic no. MC21004; AZ Dept. of Financial Institutions- mortgage banker lic no. BK 0907334; CA Dept. of Corporations- lender lic no. 4130996; CT Dept. of Banking- lender lic no. ML-13649; D.C. Dept. of Insurance, Securities and Banking- dual authority lic no. MLO13649; IL Dept. of Financial and Professional Regulation- lender lic no. MB.6760635; IN Dept. of Financial Institutions- sub lien lender lic no. 11169; ME Dept. of Professional & Financial Regulation- supervised lender lic no. SLM8285; MD Dept. of Labor, Licensing & Regulation- lender lic no. 11058; Massachusetts Division of Banking– lender & broker license nos. MC5404, MC5406, MC5414, MC5450, MC5405; MI Dept. of Labor & Economic Growth- broker/lender lic nos. FR 0010163 and SR 0012527; NH Banking Department- lender lic no. 14553-MB; NJ Dept. of Banking and Insurance-lender lic no. 0803658; NM Regulation and Licensing Dept. Financial Institutions Division- lender license no. 01890; ND Dept. of Financial Institutions- money broker lic no. MB101786; RI Division of Banking- lender lic no. 20102678LL and broker lic no. 20102677LB; TX OCCC Reg. Loan License- lic no. 7293; VT Dept. of Banking, Insurance, Securities and Health Care Administration- lender lic no. 6127 and broker lic no. 0964MB; WA Dept. of Financial Institutions-consumer lender lic no. 520-CL-49075. PrimeLending, A PlainsCapital Company is an Equal Housing Opportunity Lender. NMLS #108440

Non-Toxic Home Cleaning

2010-07-22T04:22:00.003-04:00

Today's modern home is loaded with toxic and polluting substances designed to make domestic life easier.

The cost of these commercial, chemical-based products can be high -- long term health concerns for the family, and environmental pollution caused by their manufacture and disposal. In the US, for example, 1 in 3 people suffer from allergies, asthma, sinusitis or bronchitis (US National Center for Health Statistics). Treatment for these conditions should include reducing synthetic chemicals in the home environment.

For many home-cleaning chores, you can make your own cleaning products using the formulas listed below.

A growing number of commercial non-toxic home cleaning products are also available, as healthier and environmentally responsible alternatives. Your use of these products helps promote the growth of green businesses which are contributing to a sustainable economy.

Homemade Substitutions

There are many inexpensive, easy-to-use natural alternatives which can safely be used in place of commercial household products. Here is a list of common, environmentally safe products which can be used alone or in combination for a wealth of household applications.
Baking Soda - cleans, deodorizes, softens water, scours.
Soap - unscented soap in liquid form, flakes, powders or bars is biodegradable and will clean just about anything. Avoid using soaps which contain petroleum distillates.
Lemon - one of the strongest food-acids, effective against most household bacteria.
Borax - (sodium borate) cleans, deodorizes, disinfects, softens water, cleans wallpaper, painted walls and floors.
White Vinegar - cuts grease, removes mildew, odors, some stains and wax build-up.
Washing Soda - or SAL Soda is sodium carbonate decahydrate, a mineral. Washing soda cuts grease, removes stains, softens water, cleans wall, tiles, sinks and tubs. Use care, as washing soda can irritate mucous membranes. Do not use on aluminum.
Isopropyl Alcohol - is an excellent disinfectant. (It has been suggested to replace this with ethanol or 100 proof alcohol in solution with water. There is some indication that isopropyl alcohol buildup contributes to illness in the body. See http://drclark.ch/g)
Cornstarch - can be used to clean windows, polish furniture, shampoo carpets and rugs.
Citrus Solvent - cleans paint brushes, oil and grease, some stains. (Citrus solvent may cause skin, lung or eye irritations for people with multiple chemical sensitivities.)
Trisodium phosphate (TSP) - a mixture of soda ash and phosphoric acid. TSP is toxic if swallowed, but it can be used on many jobs, such as cleaning drains or removing old paint, that would normally require much more caustic and poisonous chemicals, and it does not create any fumes.
Formulas

Combinations of the above basic products can provide less harmful substitutions for many commercial home products. In most cases, they're also less expensive. Here are some formulas for safe, alternative home care products:
Note: These formulas and substitutions are offered to help minimize the use of toxic substances in your home, and reduce the environmental harm caused by the manufacture, use and disposal of toxics. Results may vary and cannot be guaranteed to be 100% safe and effective. Before applying any cleaning formulations, test in small hidden areas if possible. Always use caution with any new product in your home.
Make sure to keep all home-made formulas well-labeled, and out of the reach of children.
All-Purpose Cleaner: Mix 1/2 cup vinegar and 1/4 cup baking soda (or 2 teaspoons borax) into 1/2 gallon (2 liters) water. Store and keep. Use for removal of water deposit stains on shower stall panels, bathroom chrome fixtures, windows, bathroom mirrors, etc.
Another alternative is microfiber cloths which lift off dirt, grease and dust without the need for cleaning chemicals, because they are formulated to penetrate and trap dirt. There are a number of different brands. A good quality cloth can last for several years.
Air Freshener: Commercial air fresheners mask smells and coat nasal passages to diminish the sense of smell.
• Baking soda or vinegar with lemon juice in small dishes absorbs odors around the house.
• Having houseplants helps reduce odors in the home.
• Prevent cooking odors by simmering vinegar (1 tbsp in 1 cup water) on the stove while cooking. To get such smells as fish and onion off utensils and cutting boards, wipe them with vinegar and wash in soapy water.
• Keep fresh coffee grounds on the counter.
• Grind up a slice of lemon in the garbage disposal.
• Simmer water and cinnamon or other spices on stove.
• Place bowls of fragrant dried herbs and flowers in room.
Bathroom mold: Mold in bathroom tile grout is a common problem and can be a health concern. Mix one part hydrogen peroxide (3%) with two parts water in a spray bottle and spray on areas with mold. Wait at least one hour before rinsing or using shower.

Carpet stains: Mix equal parts white vinegar and water in a spray bottle. Spray directly on stain, let sit for several minutes, and clean with a brush or sponge using warm soapy water.
For fresh grease spots, sprinkle corn starch onto spot and wait 15 - 30 minutes before vacuuming.
For a heavy duty carpet cleaner, mix 1/4 cup each of salt, borax and vinegar. Rub paste into carpet and leave for a few hours. Vacuum.

Chopping block cleaner: Rub a slice of lemon across a chopping block to disinfect the surface. For tougher stains, squeeze some of the lemon juice onto the spot and let sit for 10 minutes, then wipe.

Coffee and tea stains: Stains in cups can be removed by applying vinegar to a sponge and wiping. To clean a teakettle or coffee maker, add 2 cups water and 1/4 cup vinegar; bring to a boil. Let cool, wipe with a clean cloth and rinse thoroughly with water.

Deodorize:
• Plastic food storage containers - soak overnight in warm water and baking soda
• In-sink garbage disposal units - grind up lemon or orange peel in the unit
• Carpets - sprinkle baking soda several hours before vacuuming
• Garage, basements - set a sliced onion on a plate in center of room for 12 - 24 hours

Dishwasher Soap: Mix equal parts of borax and washing soda, but increase the washing soda if your water is hard.
If you want to use a commercial dishwashing soap, try Ecover Ecological or Trader Joe's powders, which contain no bleach or phosphates.
Dishwashing Soap: Commercial low-phosphate detergents are not themselves harmful, but phosphates nourish algae which use up oxygen in waterways. A detergent substitution is to use liquid soap. Add 2 or 3 tablespoons of vinegar to the warm, soapy water for tough jobs.
Disinfectant: Mix 2 teaspoons borax, 4 tablespoons vinegar and 3 cups hot water. For stronger cleaning power add 1/4 teaspoon liquid castile soap. Wipe on with dampened cloth or use non-aerosol spray bottle. (This is not an antibacterial formula. The average kitchen or bathroom does not require antibacterial cleaners.)
To disinfect kitchen sponges, put them in the dishwasher when running a load.
Drain Cleaner: For light drain cleaning, mix 1/2 cup salt in 4 liters water, heat (but not to a boil) and pour down the drain. For stronger cleaning, pour about 1/2 cup baking soda down the drain, then 1/2 cup vinegar. The resulting chemical reaction can break fatty acids down into soap and glycerine, allowing the clog to wash down the drain. After 15 minutes, pour in boiling water to clear residue. Caution: only use this method with metal plumbing. Plastic pipes can melt if excess boiling water is used. Also, do not use this method after trying a commercial drain opener--the vinegar can react with the drain opener to create dangerous fumes.

Fabric softener: To reduce static cling, dampen your hands, then shake out your clothes as you remove them from the drier. Line-drying clothing is another alternative.

Floor Cleaner and Polish:
vinyl and linoleum: mix 1 cup vinegar and a few drops of baby oil in 1 gallon warm water. For tough jobs, add 1/4 cup borox. Use sparingly on lineoleum.
wood: apply a thin coat of 1:1 vegetable oil and vinegar and rub in well.
painted wood: mix 1 teaspoon washing soda into 1 gallon (4L) hot water.
brick and stone tiles: mix 1 cup white vinegar in 1 gallon (4L) water; rinse with clear water.
Most floor surfaces can be easily cleaned using a solution of vinegar and water. For damp-mopping wood floors: mix equal amounts of white distilled vinegar and water. Add 15 drops of pure peppermint oil; shake to mix.

Furniture Polish: For varnished wood, add a few drops of lemon oil into a 1/2 cup warm water. Mix well and spray onto a soft cotton cloth. Cloth should only be slightly damp. Wipe furniture with the cloth, and finish by wiping once more using a dry soft cotton cloth.
For unvarnished wood, mix two tsps each of olive oil and lemon juice and apply a small amount to a soft cotton cloth. Wring the cloth to spread the mixture further into the material and apply to the furniture using wide strokes. This helps distribute the oil evenly.

Laundry Detergent: Mix 1 cup Ivory soap (or Fels Naptha soap), 1/2 cup washing soda and 1/2 cup borax. Use 1 tbsp for light loads; 2 tbsp for heavy loads.

Lime Deposits: You can reduce lime deposits in your teakettle by putting in 1/2 cup (125ml) white vinegar and 2 cups water, and gently boiling for a few minutes. Rinse well with fresh water while kettle is still warm.
To remove lime scale on bathroom fixtures, squeeze lemon juice onto affected areas and let sit for several minutes before wiping clean with a wet cloth.

Marks on walls and painted surfaces: Many ink spots, pencil, crayon or marker spots can be cleaned from painted surfaces using baking soda applied to a damp sponge. Rub gently, then wipe and rinse.

Metal Cleaners and Polishes:
aluminum: using a soft cloth, clean with a solution of cream of tartar and water.
brass or bronze: polish with a soft cloth dipped in lemon and baking-soda solution, or vinegar and salt solution. Another method is to apply a dab of ketchup on a soft cloth and rub over tarnished spots.
chrome: polish with baby oil, vinegar, or aluminum foil shiny side out.
copper: soak a cotton rag in a pot of boiling water with 1 tablespoon salt and 1 cup white vinegar. Apply to copper while hot; let cool, then wipe clean. For tougher jobs, sprinkle baking soda or lemon juice on a soft cloth, then wipe. For copper cookware, sprinkle a lemon wedge with salt, then scrub., A simpler method is to apply a dab of ketchup on a soft cloth and rub over tarnished spots.
gold: clean with toothpaste, or a paste of salt, vinegar, and flour.
silver: line a pan with aluminum foil and fill with water; add a teaspoon each of baking soda and salt. Bring to a boil and immerse silver. Polish with soft cloth.
stainless steel: clean with a cloth dampened with undiluted white vinegar, or olive oil. For stainless cookware, mix 4 tbs baking soda in 1 qt water, and apply using a soft cloth. Wipe dry using a clean cloth. For stainless steel sinks, pour some club soda on an absorbant cloth to clean, then wipe dry using a clean cloth.

Mold and Mildew: Use white vinegar or lemon juice full strength. Apply with a sponge or scrubby.

Mothballs: The common mothball is made of paradichlorobenzene, which is harmful to liver and kidneys. Cedar chips in a cheesecloth square, or cedar oil in an absorbant cloth will repel moths. The cedar should be 'aromatic cedar', also referred to as juniper in some areas. Cedar chips are available at many craft supply stores, or make your own using a plane and a block of cedar from the lumberyard.
Homemade moth-repelling sachets can also be made with lavender, rosemary, vetiver and rose petals.
Dried lemon peels are also a natural moth deterrent - simply toss into clothes chest, or tie in cheesecloth and hang in the closet.

Oil and Grease Spots: For small spills on the garage floor, add baking soda and scrub with wet brush.

Oven Cleaner: Moisten oven surfaces with sponge and water. Use 3/4cup baking soda, 1/4cup salt and 1/4cup water to make a thick paste, and spread throughout oven interior. (avoid bare metal and any openings) Let sit overnight. Remove with spatula and wipe clean. Rub gently with fine steel wool for tough spots. Or use Arm & Hammer Oven Cleaner, declared nontoxic by Consumers Union.
Paint Brush Cleaner: Non-toxic, citrus oil based solvents are now available commercially under several brand names. Citra-Solve is one brand. This works well for cleaning brushes of oil-based paints. Paint brushes and rollers used for an on-going project can be saved overnight, or even up to a week, without cleaning at all. Simply wrap the brush or roller snugly in a plastic bag, such as a used bread or produce bag. Squeeze out air pockets and store away from light. The paint won't dry because air can't get to it. Simply unwrap the brush or roller the next day and continue with the job.
Fresh paint odors can be reduced by placing a small dish of white vinegar in the room.

Rust Remover: Sprinkle a little salt on the rust, squeeze a lime over the salt until it is well soaked. Leave the mixture on for 2 - 3 hours. Use leftover rind to scrub residue.
Scouring Powder: For top of stove, refrigerator and other such surfaces that should not be scratched, use baking soda. Apply baking soda directly with a damp sponge.
Shoe Polish: Olive oil with a few drops of lemon juice can be applied to shoes with a thick cotton or terry rag. Leave for a few minutes; wipe and buff with a clean, dry rag.

Stickers on walls: Our children covered the inside of their room doors with stickers. Now they are grown, but the stickers remained. To remove, sponge vinegar over them several times, and wait 15 minutes, then rub off the stickers. This also works for price tags (stickers) on tools, etc.
Toilet Bowl Cleaner: Mix 1/4 cup baking soda and 1 cup vinegar, pour into basin and let it set for a few minutes. Scrub with brush and rinse. A mixture of borax (2 parts) and lemon juice (one part) will also work.

Tub and Tile Cleaner: For simple cleaning, rub in baking soda with a damp sponge and rinse with fresh water. For tougher jobs, wipe surfaces with vinegar first and follow with baking soda as a scouring powder. (Vinegar can break down tile grout, so use sparingly.)
Wallpaper Remover: Mix equal parts of white vinegar and hot water, apply with sponge over the old wallpaper to soften the adhesive. Open room windows or use a fan to dissipate the pungent vinegar smell.
Water Rings on Wood: Water rings on a wooden table or counter are the result of moisture that is trapped under the topcoat, but not the finish. Try applying toothpaste or mayonnaise to a damp cloth and rub into the ring. Once the ring is removed, buff the entire wood surface.

Window Cleaner: Mix 2 teaspoons of white vinegar with 1 liter (qt) warm water. Use crumpled newspaper or cotton cloth to clean. Don't clean windows if the sun is on them, or if they are warm, or streaks will show on drying. The All-Purpose Cleaner (above) also works well on windows. Be sure to follow the recipe, because using too strong a solution of vinegar will etch the glass and eventually cloud it
Healthy Home Cleaning Habits
Exchange Indoor Air
Many modern homes are so tight there's little new air coming in. Open the windows from time to time or run any installed exhaust fans. In cold weather, the most efficient way to exchange room air is to open the room wide - windows and doors, and let fresh air in quickly for about 5 minutes. The furnishings in the room, and the walls, act as 'heat sinks', and by exchanging air quickly, this heat is retained.
Minimize Dust
Remove clutter which collects dust, such as old newspapers and magazines. Try to initiate a 'no-shoes-indoors' policy. If you're building or remodelling a home, consider a central vacuum system; this eliminates the fine dust which portable vacuum cleaners recirculate.
Use Cellulose Sponges
Most household sponges are made of polyester or plastic which are slow to break down in landfills, and many are treated with triclosan, a chemical that can produce chloroform (a suspected carcinogen) when it interacts with the chlorine found in tap water. Instead try cellulose sponges, available at natural foods stores, which are biodegradable and will soak up spills faster since they're naturally more absorbent.
Keep Bedrooms Clean
Most time is spent in the bedrooms. Keep pets out of these rooms, especially if they spend time outdoors.
Use Gentle Cleaning Products
Of the various commercial home cleaning products, drain cleaners, toilet bowl cleaners and oven cleaners are the most toxic. Use the formulas described above or purchase 'green' commercial alternatives. Avoid products containing ammonia or chlorine, or petroleum-based chemicals; these contribute to respiratory irritation, headaches and other complaints.
Clean from the Top Down:
When house cleaning, save the floor or carpet for last. Allow time for the dust to settle before vacuuming.
For more information go to
http://eartheasy.com/live_nontoxic_solutions.htm

Make yourself newsworthy and get more media coverage!

2010-07-21T09:45:00.002-04:00

Publicity can heighten awareness and "buzz" about you, giving your business a real boost. Media coverage gives you the kind of credibility you just can't get from ads and brochures. So how can you get the media interested in you?

Before you contact a reporter or write up a press release, make sure the info you're sharing really is newsworthy! That's the secret to getting the media to pay attention to you. Let's start with that press release.

If your press release is an announcement, ask yourself why people should care about what you have to say. If you can't come up with an answer, do some research, try a different story angle and rewrite the announcement. Ask others to read it -- a client, a prospect, co-workers, friends, or family. Find out if they think the info is interesting and useful.

You can also make your own news. Here are five directions to take:

1. Participate in an event that benefits the community, or create one yourself. You'll be giving something back, inspiring others to do likewise, and providing help to people who need it. That's good news for all.

2. Come up with a Top 10 List, or a brief topical report. Think about the latest trends in your industry. Use these as subject matter for a Top 10 List or a brief report that demonstrates your expertise. Then let the media know what you've come up with.

3. Write an opinion piece for the editorial page. Write down your opinion about a news story or current issue and submit it to the local newspaper. Present your ideas in a positive and respectful manner and you'll gain credibility, as well as awareness.

4. Make a speech or give a presentation. Look for forums your target audience attends, sponsored by business associations, organizations, and community colleges in your area. These groups need speakers with fresh ideas. Don't make your talk a sales pitch. Offer up insightful information your audience can use. Invite reporters. Even if the event isn't covered, you can add it to your resume, further establishing you as an expert in the field.

5. Promote your successes. The things your clients accomplish with your help can make great news stories. Ask if you can share their story with the media, then get their thoughts on how you've helped them reach a goal or attain a dream. "Before-and-after" stories are popular and all these efforts can be re-purposed as testimonials and case studies on your web site.

Think like a reporter and you'll see ways to make your story more newsworthy. The information should be timely and have a benefit. Remember, good media coverage can get great buzz going for you.... Have a great month!

Update your home insurance and save money too!

2010-07-16T07:16:00.003-04:00

Update your home insurance and save money too!
Once a year it's a good idea to update your homeowners insurance. You want to make sure you have adequate coverage if you experience a loss. And you want to check on all the options insurance companies offer to reduce annual premiums. Here are the steps to take.

Calculate the coverage you need on the house itself. Homeowners insurance pays what it will cost to rebuild your house. You can arrive at this amount by multiplying your home's square footage by the building cost per square foot for homes in your local area. Get this number from realtors, local homebuilders' associations, and insurance agents. Be sure to check on the building cost number each year, as it can change, leaving you with inadequate coverage.
Make sure your home's contents are adequately covered. Check your policy to see if you have "full replacement value" coverage for your home's contents. If you don't, the insurance company can give you a pro-rated value for these items -- a reduced amount that accounts for age and wear. In any case, valuable items such as jewelry, art, and antiques should be insured for their actual replacement value on a separate rider. You pay more for this coverage, but you will get full value for the item in case of a loss.

Take photos and videos of your home and contents. Cover every nook and cranny and put the pictures and videos in a safe deposit box. You might also save them online. Then if you have a loss, you have proof of the quality and condition of your home and its contents before the disaster.

Ask about premium discounts. There are many ways insurers discount their annual premiums. Higher deductibles or a good credit rating can earn you discounts. Purchasing your auto insurance from the same company may reduce premiums. Discounts can also come from: smoke detectors, sprinkler systems, fire extinguishers, being over 55 or a longtime policy holder, security alarms connected to an outside service, or hurricane shutters. But don't let price be your only concern. First and foremost, make sure you're dealing with one of the reputable, reliable insurers operating in your area.

BREAKING NEWS!

Mortgage rates hit historic lows. Mortgage rates are back where they were in the 1960s when cars had tailfins. So if you or someone you know may be in a higher interest rate mortgage, call or email us today to see if there's money to be saved!
Low rates and today's home prices also make homes more affordable than they've been in years. So anyone thinking of buying might want to make a move now.
REMINDERS!

The government has extended the closing deadline for claiming the federal homebuyer tax credit to September 30.
The government also retroactively reinstated the National Flood Insurance program (which expired May 31) until September 30. Homebuyers who are shopping in areas where flood insurance is necessary to get a mortgage should look to close before September 30.

Please feel free to contact us at any time about any matters relating to home financing or refinancing.

... Have a great day!

Market Update

2010-05-17T10:49:00.003-04:00

For the week of May 17, 2010 – Vol. 8, Issue 20
Market Update
INFO THAT HITS US WHERE WE LIVE
Last Tuesday the National Association of Realtors (NAR) reported the Q1 median price for existing homes was up in 91 out of 152 metro areas compared to a year ago, showing the housing market is starting to stabilize. This was a nice gain over Q4 of last year when prices were up in only about 40% of the cities tracked. Even more encouraging, the percentage price increases in 29 cities were in double-digits.

The NAR also reported that existing home sales of single-family homes and condos were UP 11.4% in Q1 compared to a year ago. Sales increased in 44 states and Washington, D.C., with over 70% reporting double-digit percentage gains.

Long-term forecasts were also revised slightly downward by the NAR, but the numbers are still good. They see existing home sales UP 4.3% this year and UP 5.1% for 2011, with the median resale home price UP 2.5% for 2010 and UP 3.7% in 2011. New single-family home sales are forecast to rise 6.9% in 2010 and a whopping 42.0% next year. Median new home prices will be up 3.3% this year and 4.7% the next.
>> Review of Last Week
ANOTHER EUROPEAN TRIP... Europe's fiscal shenanigans were in the news again and they took the markets on a trip north, then turned them sharply south to end the week. The gains came after Sunday's announcement of a major Euro-zone rescue package. But as the week wore on, concerns over whether individual countries would put the necessary austerity measures in place sent stocks down, though the market indexes ended the week with strong gains.

If you could take your mind off Europe, there were plenty of reasons to feel positive about the U.S. economic situation. Wednesday, the March trade deficit came in as expected, up $1.0 billion to $40.4 billion, thanks to the strength of our recovery pushing imports up faster than exports. Best of all, the report showed our total volume of international trade was up 3.1% for the month and up 24% since it hit bottom a year ago April.

On the jobs front, the four-week moving average inched down for both initial and continuing unemployment claims. Then Friday came the news retail sales were UP 0.4% for April and UP 0.9% including upward revisions to February/March. For the last six months, retail sales are up at a 10.7% annual rate, 10.3% excluding autos, showing the consumer is certainly alive and well. Finally, industrial production was UP 0.8% for April, as manufacturing continues to boom, up at a 9.5% annual rate since its low last June.

For the week, the Dow ended UP 2.3%, to 10620.16; the S&P 500 was UP 2.2%, to 1135.68; and the Nasdaq was UP.6%, to 2346.85.

Worried about Europe, investors flocked to the safety and bargains they found in bonds. Friday's drop in stocks pushed bond prices up nicely. So even though we had good economic data on Friday, the week ended on an up note. The FNMA 30-year 4.5% bond we watch closed UP 9 basis points for the week, ending at $101.59. According to Freddie Mac's weekly survey, national average fixed-rate mortgages dipped to their lowest levels of the year.
>> This Week’s Forecast
HOMES, INFLATION--WHAT'S GOING UP?... Housing Starts and Building Permits reports will tell us where new home construction is headed and the expectation is those numbers will continue to trend upward. We'll see if inflation is going up too, with the wholesale PPI on Tuesday, followed by consumer CPI inflation on Wednesday. Most experts feel inflation remains under control. The week will be bookended with reads on New York and Philadelphia manufacturing, which should continue to show a strong recovery for the sector.
>> The Week’s Economic Indicator Calendar
Weaker than expected economic data tends to send bond prices up and interest rates down, while positive data points to lower bond prices and rising loan rates.

Economic Calendar for the Week of May 17 – May 21
Date Time (ET) Release For Consensus Prior Impact
M
May 17 08:30 NY Empire State Manufacturing Index May NA 31.9 Moderate
Tu
May 18 08:30 Housing Starts Apr 656K 626K Moderate
Tu
May 18 08:30 Building Permits Apr 680K 680K Moderate
Tu
May 18 08:30 Producer Price Index (PPI) Apr 0.1% 0.7% Moderate
Tu
May 18 08:30 Core PPI Apr 0.1% 0.1% Moderate
W
May 19 08:30 Consumer Price Index (CPI) Apr 0.1% 0.1% HIGH
W
May 19 08:30 Core CPI Apr 0.0% 0.0% HIGH
W
May 19 10:30 Crude Inventories 5/15 NA 1.95M Moderate
Th
May 20 08:30 Initial Unemployment Claims 5/15 440K 444K Moderate
Th
May 20 08:30 Continuing Unemployment Claims 5/15 4.600M 4.627M Moderate
Th
May 20 10:00 Leading Economic Indicators (LEI) Index Apr 0.2% 1.4% Moderate
Th
May 20 10:00 Philadelphia Fed Index May 21.3 20.2 HIGH

>> Federal Reserve Watch
Forecasting Federal Reserve policy changes in coming months Economists are now moving back to the idea the Fed will indeed keep rates where they are for an "extended period" as long as inflation remains in check. Note: In the lower chart, a 1% probability of change is a 99% certainty the rate will stay the same.
Current Fed Funds Rate: 0%–0.25%
After FOMC meeting on: Consensus
Jun 23 0%–0.25%
Aug 10 0%–0.25%
Sep 21 0%–0.25%

Probability of change from current policy:
After FOMC meeting on: Consensus
Jun 23 3%
Aug 10 10%
Sep 21 15%

Tax Credit Available after April 30th

2010-04-30T14:43:00.002-04:00

This one is bigger and better. If you live in North Carolina and are a first-time homebuyer you may qualify. Give me a call and lets get started!
Brochure on Tax Credit

2010-04-28T14:52:00.003-04:00

The House of Representatives passed a bill extending the USDA housing program. The bill raises the guarantee fee to 3.5% (from 2%). Last week, Barney Frank, Chairman of the House Financial Services Committee, mentioned that conversations were underway with the Senate and was hopeful that the extension could be completed before funding expired in early May.

USDA has announced that funding will now expire about May 7th. They also indicated that they may be willing to “consider issuing Conditional Commitments” depending on the status of Congressional activity with the proposed legislation.

Please be patient as we work through this inconvenience. We know you need this product and we will do all within our power to make it available as soon as possible.

Note we can’t accept new USDA applications until the funding is approved. But it’s looking like it’s just around the corner, and may give folks who missed the $8000 tax credit an opportunity to still purchase a home.

Don’t forget we will continue to offer the MCC tax credit to qualified buyers, so first-time homebuyers can still get free tax $$$$$$$$$$$ after the $8000 is gone.

The Housing Market’s New Rules

2010-04-22T07:47:00.005-04:00

Reprinted from moneywatch.com / Cash Flow
The Housing Market’s New Rules
by Nancy F. Smith | Apr 6, 2010

Many prognosticators believe the next few years will see tepid returns in the stock and bond markets — but what’s in store for the post-crash real estate market? For anyone shopping for a house, the news could be good. Indeed, if there’s a ray of sunshine anywhere in the “new normal” economic outlook — slow economic growth, unemployment hovering above 8 percent, more regulation, less borrowing — it is shining on homebuyers.

Given record inventories and continued high foreclosure levels, home prices will bounce along the bottom for a while, at least according to the crystal ball wielded by David Berson, chief economist with mortgage insurers PMI Group. And Berson sees little indication that you’ll have to pay more than 5.5 percent for a mortgage this year, maybe 6 percent in 2011. All of which means real estate is a solid buyer’s market. You can get the house you want at a good price, and you can take your time finding it. Just keep these five rules in mind:

1. Don’t Expect Big Profits

You should not buy a house because you think it’s a terrific investment. “Maybe we should be calling this the ‘old normal,’” says John Burns, CEO of John Burns Real Estate Consulting: a return to a time when you viewed home ownership as a way to lock in your housing costs with a fixed-rate mortgage, pay it off after 30 years, and retire with no housing costs beyond property taxes and insurance. “For the last six or seven years, the notion has been of your house as a cash machine,” he says. “Those days are gone.”

2. Make a Real Down Payment

To qualify for a home loan, you’ll have to meet those quaint, old-fashioned standards of actually documenting your income and debt. If you want to take advantage of the best mortgage rate, you’ll have to put 20 percent down. “FHA will still do loans up to 97 percent. Mortgage insurers are still there for 90 percent loans,” says Burns. “But if you’re putting less than 20 percent down, you’re going to be paying a higher interest rate and higher mortgage insurance premiums because of it.” And 100 percent loans are history.

3. Run the Numbers

“One of my favorite strategies is spinning off income from your assets, whether it’s paper assets or hard assets,” says David Rosenberg, chief economist and strategist for investment firm Gluskin Sheff. “I wouldn’t suggest buying real estate in anticipation of any price appreciation, but if it can provide an income stream, that’s different altogether.” Just keep in mind that vacancy rates nationwide are close to a record 11 percent, and that puts downward pressure on rents. “Don’t expect to see much of an increase in the rental income stream for a while,” he says.

4. Plan to Pay Higher Property Taxes

With slower economic growth comes lower tax revenues at all levels of government. Homeowners are an easy target when state and local budgets need balancing.

5. Get Real About Your Current Property

The bubble didn’t just burst, it evaporated, so forget the price you could have gotten for your house at the peak — unless you have years to wait. With slow economic growth and high unemployment rates, “I expect housing prices to remain flat through 2010,” says Berson. “They’ll increase maybe 1 percent to 2 percent next year, 2 percent to 3 percent the year after that, and the long-term average should be about 4 percent.” Do the math, and you’re looking at least nine years before houses regain the 30 percent they’ve lost since 2006. Flip side? Housing prices are up about 25 percent since 2000, so if you didn’t buy during the real estate bubble, you’re probably sitting on some equity.

“The ‘new normal’ isn’t just about economic theory,” Rosenberg says. “It’s a real secular shift in consumer attitudes. If you ask a typical homeowner what he would do if he could turn back the clock, he’d move back into the house he had before he traded up to a McMansion — the house he loved, the house he raised his family in. The bubble was all about bigger cars, bigger homes. The ‘new normal’ is about getting small.”

For complete story:
http://moneywatch.bnet.com/saving-money/article/real-estate-the-new-rules-for-buying-a-house/410929/?tag=shell;main

Raleigh Struttin' Her Stuff on Top Ten List of Best Places to Live

2010-04-21T19:10:00.006-04:00

Wednesday, April 21, 2010, 12:01am EDT
Raleigh named No. 8 best place to live
TRIANGLE BUSINESS JOURNAL - BY Amanda Jones Hoyle

The Raleigh metro area ranks among the top 10 places to live in the United States for 2010, according to a new study by the Web-based research firm RelocateAmerica.com.
Raleigh took the No. 8 spot among the 100 U.S. municipalities nominated for the award. The rankings were based on interviews with local leaders, feedback from residents and a compilation of data related to the community’s economic, environment, education, crime, employment and housing stability.
Charlotte also cracked the top 10, coming in just ahead of Raleigh at No. 7.
Durham was not included in the rankings.
Huntsville, Ala., claimed the No. 1 spot, followed by Washington, D.C.; Austin, Texas; San Diego; San Antonio, Texas; Tulsa, Okla.; Charlotte; Raleigh; Boulder, Colo.; and Minneapolis.
RelocateAmerica.com also compiled top 10 rankings in other categories.
Asheville was ranked at No. 1 on the Top 10 Retirement Cities list, and Wilmington ranked No. 9 on the Top 10 Recreation Cities list. Other breakout categories that did not include cities in North Carolina were rankings for top recovery cities, ‘earth friendly’ cities and small towns with populations under 40,000 people.
“Given the tough economic times our nation is facing, homebuyers have re-evaluated their priorities and are looking to relocate to communities that offer plenty of perks, but minimal hassle and cost,” said Peter Meyers, vice president of research and content development at RelocateAmerica.com, in a statement.
“While some cities are facing a road to recovery that could take years, others are poised for a quick rebound - and already have seen growth. We wanted to highlight those cities that are on the road back to economic health.”
Click here to see the full RelocateAmerica.com Best Places to Live list. http://www.relocateamerica.com/north-carolina/cities/raleigh
RelocateAmerica.com is operated by trueV New Media Group of Brighton, Mich. It has been publishing the top cities relocation lists annually since 1998.

http://triangle.bizjournals.com/triangle/stories/2010/04/19/daily28.html?ed=2010-04-21&ana=e_du_pap

Work smarter, not harder! Here's how...

2010-04-21T13:59:00.002-04:00

Work smarter, not harder! Here's how.
Who isn't strapped for time? These days everyone's dealing with a ton of issues every day. Here are some tips from the experts on how to get the maximum done in the minimum time.

1. Stop multi-tasking. It's easy to get drawn into this modern work habit, with phone calls, emails and social networks clamoring for our attention -- along with all the work we have to do. But studies show multi-tasking doesn't necessarily increase productivity or help us get things done more quickly. The best approach is to work on just one task at a time till it's finished.

2. Eliminate unprofitable clients. If people take up way more of your time than they're worth, be realistic and let them go elsewhere. These clients are costing you money as well as time -- and keeping you away from more profitable opportunities.

3. Stay focused. Set aside time for work without phone, email or online interruptions. To keep yourself focused and efficient, set time limits for finishing tasks. Try using a timer, but be realistic with your estimates.

4. Delegate. If you're not good at something, or don't have time for it, hand it off! See if the job can be given to someone in your organization or outsourced to a virtual assistant (VA). VAs are available for everything from setting up social networking, to doing blogs, newsletters and online marketing. Or hire an intern. Check with local colleges, social networks, Craigslist or LinkedIn.

5. Document your processes. Write down the steps you take for key tasks you regularly do. This eliminates working out how to do something over and over again and ensures your efforts are consistent. A written-out process is also a big help if you hire someone or outsource the task.

6. Look for new opportunities. Example: a Realtor in New York may use search.twitter.com to get leads for their business, searching key terms like "moving to New York."

7. Phone efficiently. Keep phone calls short and on topic. Don't let the phone interrupt you when working on a project that requires concentration -- let all calls go to voice mail.

8. Manage your emailing. Keep separate work and personal email accounts. Do not check personal emails unless you're taking a break or finished work for the day. Set specific times to check your business emails and don't respond to them immediately unless they're urgent. Wait until you can answer them all.

9. Schedule time for yourself. To work your best, you need to feel your best. Make sure you stay active and enjoy your family, friends and personal pursuits. Book the time for these things -- and don't cancel!

"Work smarter, not harder" is an old adage, but more relevant than ever today. Master the approach and your whole work life will be easier -- and more successful.... Have a great month!

USDA Update

2010-04-21T12:39:00.002-04:00

On Thursday, April 22, 2010 the House of Representatives' Financial Services Committee will consider several housing-related bills, including H.R. 5017, a bill introduced on April 14 that would make additional funding available for the Section 502 guaranteed mortgage loan program in Fiscal Year 2010. The mark-up will be broadcast live online via the Committee's website beginning at 10 a.m. Eastern time.
H.R. 5017, named The Rural Housing Preservation and Stabilization Act of 2010, would authorize up to $30 billion for the Section 502 guarantee program this year. The program is expected to use the $12 billion previously authorized for this year by the end of April. The bill would raise the additional funds through lender fees when the guarantee is issued and then annually throughout the loan term.
The USDA Rural Housing program is still in a suspense status until further information is provided regarding the bill that is being considered.
We are monitoring this closely and as soon as more information as available we will keep everyone informed. We appreciate everyone’s patience in regards to this program and look forward to more information later this month.

Check these new privacy settings on Facebook now!

2010-04-14T16:37:00.002-04:00

Check these new privacy settings on Facebook now!

Popular social networking site Facebook recently made some big changes affecting users' privacy. If you've entered all your privacy settings on Facebook just the way you want them, you're OK -- as long as you kept these personalized settings when you were prompted by Facebook's "transition tool." This dialog box asked users if they wanted to opt for Facebook's new "recommended settings." If you did this, you inadvertently let Facebook publicize your private information. Here's how to change things back.

1. Settings for Who Can See The Things You Share. If you accepted their new recommended settings, Facebook can now share items you post with any user or application on the site. Here's how to fix that:
• Go to your "Account" tab at the top right hand side of your "Home" page.
• Use the pull down menu and go down to "Privacy Settings."
• Click on the "Profile Information" link from the choices on the next page.
• Change all of the settings on this page to "only friends" for anything you only wish for your friends to see. This will ensure that only people you know are viewing your personal information.
Facebook's "Profile Information" covers your interests, activities, your birthday, religious and political views, and relationship status among other things. Facebook's new default is now "Everyone" for family and relationship status and "Friends of Friends" for birthday, religious and political views.

2. Settings for What Google Can See. Make sure you're not sharing more with the search engines than you're comfortable with. Here's what to do:
• Go to your "Account" page and use the pull down menu and go to "Privacy Settings" again.
• Click on the "Search" link from the choices on the next page.
• Uncheck the "Allow" box next to the second setting "Public Search Results."
• Use the pop-up box to confirm your choice.
• Click "Preview my Profile" to check what you've done.
Remember, any setting except "Only Friends" is a stranger. "Friends of Friends" sounds harmless, but that is everyone your Friends added as Friends, which is hundreds or thousands of people you don't know. Don't wait until something bad happens to protect your privacy on Facebook. Check it out now!

Finally, anyone about to buy a home needs to sign a contract by April 30 and close by June 30 to take advantage of the government's tax credit -- up to $8,000 for first-time buyers and up to $6,500 for move-up buyers.

Please contact me if I can help with any of these matters.... Have a great day!

The Future of Fannie Mae and Freddie Mac

2010-03-23T20:34:00.005-04:00

Th

Sanders Would Steer Fannie, Freddie Toward Privatization: Anthony Sanders, a professor at George Mason University, talks with Bloomberg’s Erik Schatzker about proposals to overhaul Fannie Mae and Freddie Mac. Treasury Secretary Timothy Geithner is scheduled to testify today before the House Financial Services Committee about the housing-finance system. (Source: Bloomberg)

Durham Featured on Today Show as Among Most Affordable Cities in US

2010-03-23T07:51:00.003-04:00

http://www.bullcityrising.com/

USDA RUNNING OUT OF MORTGAGE FUNDS FOR 2010

2010-03-10T20:39:00.002-05:00

The USDA has issued a warning this morning about their funds for the remainder of 2010 which have not been allocated. Current funding will run out the end of April, 2010 if nothing changes. This is all we know at this time.

We are in touch with all the right people and most importantly, Prime Lending is on top of the situation and is doing its magic.

You are our customer. Nothing is more important than your satisfaction. We know you need answers and we will get them for you ASAP. Thank you for all you do!

Team Hedges

USDA LETTER
SFH Origination News
From the National Office in Washington DC

March 10, 2010

Notice of Funding

This message is to notify you that program funding for the Single Family Housing Guaranteed Loan Program will likely be exhausted by the end of April, 2010.

Once funding is exhausted, the Agency will not issue Conditional Commitments “subject to receipt of appropriated funds.” This is because it is not certain when additional funding will be available.

Limited funding may become available for disaster areas declared in 2008, or in disaster areas declared for Hurricanes Katrina and Rita. Limited funding may also become available as prior Agency commitments are de-obligated, however, such funding will be very limited.

We apologize for any inconvenience this may cause you. Should you have any questions, you may contact the Single Family Housing Guaranteed Loan Division at (202)720-1452.

Kind Regards,
Jean

How to Work With No Credit Score

2010-03-08T13:13:00.004-05:00

Many young first-time homebuyers have no credit and can't get a home loan even with a great job! It is next to impossible to get a new traditional credit card these days without a credit history. Team Hedges can help! Don’t wait--it will take one to two months to get a FICO. The sooner we start the better.

Triangle Wired!

2010-03-03T16:54:00.002-05:00

Reprinted from Triangle Business Journal, March 3, 2010

Step aside, Seattle. Out of the way, Atlanta. Forbes magazine has declared Raleigh the most wired city in the United States.

Called a “surprise winner” by Forbes, Raleigh ranked highest overall among U.S. cities in three areas – broadband penetration, broadband access and the prevalence of wi-fi hot spots.

Reposted from Triangle Business Journal.

“Taken together,” the magazine writes, “the factors point to a populace that readily uses high-speed Internet inside and outside the home.”

Raleigh did not take the top spot in any of the three categories but placed in the top 10 in each.

The city’s highest ranking was No. 3 for broadband adoption. Some 71 percent of Raleigh residents are connected to high-speed Internet.

With 17 companies proving broadband coverage, Raleigh ranked No. 9 for access options. The city took the No. 10 spot for wi-fi hot spots per capita.

Atlanta was second on the list, followed by Seattle. The full report is available on the Forbes Web site.

Keep Those Home Costs Under Control

2010-03-02T11:21:00.002-05:00

These days, most people are trying to control their expenses a little more tightly. Often they don't realize how much they're paying to live in their homes. So let's take a look at that home budget and see if we can't do a better job of staying on top of the costs.
1. Your largest expense is probably your mortgage. These days mortgage rates are historically low, so you might be able to refinance and lower your monthly payment. Email or call and we'd be happy to let you know if that makes sense.
2. Another major expense is likely to be your homeowner's insurance. Check in with your agent once a year to see if you're getting the right coverage at the best price.
3. Next look at your real estate taxes. The higher the assessed value of your property, the higher your real estate taxes. So the next time your city or town does a reassessment, don't be afraid to ask for an abatement if you think they've given your home too high a value. Do your homework. Look up the assessments for similar homes in your neighborhood. The records are public and usually available at the tax assessor's office.
4. Recurring monthly expenses:
• If you pay for town water, town sewer or a homeowners' association, those are probably fixed expenses you can't cut.
• But if you pay for private trash collection, snow removal, lawn and gardening services, periodically look around for cheaper rates. Even if you're happy with your current supplier, this information could help you get a better deal.
• Phone, internet and cable TV services should be reviewed at least once a year to see if competitors offer better prices.
• Energy costs. Oil companies should be reviewed once a year, before heating season begins. And if you think oil may be going up, pick a supplier who will lock in the price. In a growing number of areas, you can also find competing electric companies. Find out who has the best deal. If you heat and air condition with gas, ask your local gas company about special offers.
5. Maintenance and repairs. It is always cheaper to fix a problem as soon as it comes up, rather than letting it go. It costs very little to re-caulk around a bathtub, but if you ignore it, you could wind up replacing a wall. Put aside $500 to $1,000 a year to take care of minor repairs and maintenance.

6. Major improvements. If you have you heart set on updating a kitchen or bath, installing a deck, or even putting on a new addition, get a rough cost estimate and decide how many months from now you'd like to start. Divide the cost by the months and begin putting money away for it each month.

Your home is your biggest investment. But with a little effort you can make your home costs smaller.
Please contact us if we can be of help.... And have a great day!

A leading indicator for home prices? Follow the rents!

2010-02-24T19:48:00.000-05:00

The big question for home buyers and sellers today is: "Where are home prices headed?" People want to know if now is a good time to buy or sell, or if they should wait. We all need to stay on top of trends in real estate values -- so what's a good way to analyze the situation?

Yale economist Robert Shiller states it bluntly: "If you look at the trend in rents to see where housing prices are headed, you're looking at the right measure." Shiller is the co-developer of the S&P Case/Shiller Home Price Indices that monthly track residential real estate values nationally and in 20 metro areas.

Traditionally, people have been willing to pay a modest premium to own a home rather than rent it. Recent studies report that in 1999 rents averaged 87% of the after-tax mortgage payment for houses and condos of similar size in the same neighborhood.

When home prices took off, this percentage changed. By mid-2006, rents had fallen to less than 60% of after-tax mortgage payments. In some markets, owners were paying twice as much as renters for a similar property in the same neighborhood. In a few places, owner monthly payments were three times average rents.

The 87% ratio of rent to ownership cost for 1999 is a good benchmark because it stayed around that level throughout the 1990's and the steep rise in home prices hadn't really begun.

With that as our guide, we can conclude that home prices at last appear to be stabilizing. By the end of October 2009, rents on average were up to 83% of ownership costs!

Conditions vary from market to market, so check your own area. But with historically low mortgage rates, plus the homebuyer tax credit, this could be a great time to be buying or selling.... Have a great month!
As your success partner, we’re your best source of information about any and all financing options. We’re always here to answer questions and to help you take advantage of new opportunities.

How Your Credit Score Is Derived

2010-02-17T11:31:00.001-05:00

Developed in 1956, a Fair Isaac Corporation Score (commonly called the FICO Score) is a three digit number ranging from 300-850 and is calculated according to the following risk factors:

Payment History (35% of score)

* Payment information on many types of accounts
* Public record and collection items
* Details on late or missed payments – specifically:

o how late they were
o how much was owed
o how recently they occurred
o how many there are

Amounts Owed (30% of score)

* Amount owed on all accounts
* Amount owed on different types of accounts
* Whether you are showing a balance on certain types of accounts
* How much of the total credit line is being used
* How much of installment loan accounts is still owed

Length of Credit History (15% of score)

* How long your credit accounts have been established, in general
* How long specific credit accounts have been established
* How long it has been since you used certain accounts

New Credit & Inquiries (10% of score)

* What kinds of credit accounts you have and how many of each
* Total number of accounts you have

Types of Credit (10% of score)

* How many new accounts you have
* How long it has been since you opened a new account
* How many recent requests for credit you have made

What It Means

Once the borrower’s score is derived, most lenders use a standard ‘grading’ system to categorize the results. While some lenders develop their own systems for classification of scores, below is a general guide of score interpretation. Used as a general reference, this can help you interpret the credit score you’ve been given based on a grading system typically used in schools:
CREDIT SCORE
670 and above
650
620
580
550
520 or below
GRADE
A+ to A
A-
B+ to B-
C+ to C-
D+ to D-
E

2010-02-06T14:41:00.005-05:00

Home Sellers Still See Conditions as Unfavorable.

2010-02-06T14:41:00.004-05:00

Perspective on Shadow Inventory

2010-02-05T22:08:00.000-05:00

It’s often very difficult to predict where mortgage rates are headed and most of the time when asked where rates are headed the best answer is “they’ll go up and they’ll go down.” In today’s market however there’s an event on the horizon that almost certainly will drive mortgage rates up- the Fed will stop buying mortgage backed securities (MBS) this spring. Buying MBSs has been an effective way to hold mortgage rates down.

Many experts are expecting rates to jump a half a point or more after the program wraps up at the end of March.
Take a look here to see how historically low rates are today. It looks like waiting to get mortgage financing could be dangerous to one’s financial health!

Mayberry Modernism - Why the Triangle is America's Hotspot for Way Cool Houses

2010-02-04T07:37:00.002-05:00

Barney Fife spent his weekends in Raleigh, and for good reason - we are one of the country's hotspots for mid-century modernist architecture. find out where to find over 500 local examples of great architecture -- and what you can do to save some of these "works of art" from destruction! Video: http://www.youtube.com/watch?v=emgDjyGeGVE

Good News: Job losses slowed significantly in January according to a private sector report.

2010-02-03T14:09:00.002-05:00

Pending Home Sales Head Back Up

2010-02-02T13:09:00.002-05:00

http://link.brightcove.com/services/player/bcpid1785312249?bclid=1740033302&bctid=64396224001

Believe it - Triangle region lands record $1.9B in business projects :: The Skinny at Local Tech Wire

2010-02-01T13:26:00.000-05:00

Believe it - Triangle region lands record $1.9B in business projects :: The Skinny at Local Tech Wire

Goodnight, Raleigh! | a look at the art, architecture, history, and people of the city at night

2010-02-01T13:12:00.001-05:00

Goodnight, Raleigh! | a look at the art, architecture, history, and people of the city at night

Posted using ShareThis

Home Buying Stars Are Aligned

2010-01-29T21:09:00.000-05:00

The saying “the stars are aligned” pretty much sums up the housing market today. Let’s take a look at why buying today -- not waiting until Spring, for example -- makes sense.

The Department of Housing and Urban Development (HUD) recently made changes to the cost of getting a loan guaranteed by the Federal Housing Authority (FHA). On April 5th, 2010, the cost of required up-front mortgage insurance on FHA insured loans will be increased by one-half per cent. This could add $1,000 or more to the loan amount. Although it is usually financed in the loan, the extra cost will be paid by the homebuyer one way or the other.

There are also changes coming to the amount a home seller can contribute toward the buyer’s costs at closing. Currently, FHA allows the seller to contribute up to 6% of the home’s price. That will be cut in half to just 3%, probably sometime this Summer (the date has not yet been set by HUD). This could mean many thousands of dollars more that the homebuyer will have to come up with at closing.

Mortgage rates are near historic lows, BUT the Federal Reserve Board’s mortgage backed securities purchase program is set to expire. The Fed has already scaled back its purchases over the last few months, allowing rates to rise on mortgages. Once the Fed stops the purchases entirely at the end of the first quarter, rates are expected to rise a half per cent or more.

The deadline for the Home Buyer Tax Credit is for contracts written on or before April 30th (and set to close no later than June 30th).

All of this adds up to a big “don’t wait!” If you or anyone you know is thinking about buying a home, please have them call or email us today.