Richard Chimniak CNC - Charles Rutenberg Realty : Finances

STIMULUS BILL and DISTRESSED PROPERTIES

Richard Chimniak — Wed, 18 Feb 2009 21:09:00 GMT

Stimulus bill includes boosts for housing. The American Recovery and Reinvestment Act of 2009 (H.R. 1) increases the first-time homebuyer tax credit to $8,000 and eliminates the repayment requirement for buyers who purchase a home between Jan. 1, 2009 and Dec. 1, 2009 (See how the tax credit works). Other housing measures in the bill include:

FHA, Fannie and Freddie loan limits - Higher 2008 limits will be reinstated for 2009, except in communities where the 2009 limit is already higher. (Link to NAR estimates.)
Foreclosure mitigation and neighborhood stabilization – Funding will be given to states and municipalities that are recipients of Community Development Block Grant dollars to stabilize neighborhoods and redevelop abandoned and foreclosed homes.

Nationally, prices drop as buyers purchase distressed properties. According to NAR’s 4Q08 report, distressed sales–foreclosures and short sales–accounted for 45 percent of transactions in 4Q08, dragging down the national median existing single-family price to $180,100, which is 12.4 percent below 4Q07 when conditions were more balanced

WHAT LENDERS ARE LOOKING FOR IN A BORROWER ?

Richard Chimniak — Fri, 08 Feb 2008 20:01:00 GMT

CURRENT MORTGAGE REFOCUSING - FEB 2008

· During the refinance boom, lenders would get back to you whenever

· Bust of the sub-prime market has eliminated a good percentage of buyers 40-50%

· Traditional buyers with good credit (>720), little debt, and equity in their primary residence are in the drivers seat.

· Lenders are climbing over each other to get your business. You can count on better service.

· You now have leverage to possibly waive fees and negotiate a lower interest rate.

· Beware of thin profit margins with the lenders that are left.

· Mediocre credit scores and not much equity can still get a refinance, but it may take more time and higher rates.

· Do your homework, talk to a least 3 lenders, compare rates and costs, look for room to negotiate.

· The lender doesn’t want you to take a good loan to a competitor.

· PROFILE OF A WANTED BUYER

o Solid Credit scores – (720- 850)

o EUITYT – At least 20% of equity or down payment on a new home

o Good Debt-to-income ratio Debt needs to be less than 42%-45% of income

o Cash reserves equal to six (6) months of living expenses. (Bank, 401K or brokerage accounts)

Ten Traits That Make You Rich

Richard Chimniak — Fri, 08 Feb 2008 19:45:00 GMT

1. Patience

Patience is one of the most important traits when it comes to saving money.

This means waiting until the first wave of product hype has passed, keeping a car for an extra few years before getting another one and waiting until something you want fits into your budget instead of putting it on credit.

Patience is often the difference between creating savings and being in debt. Having the patience to wait until you find a good deal is a cornerstone of good finances.

2. Satisfaction

When you're satisfied, there is no reason to spend money on nonessentials. The sole purpose of commercials is to make you believe that buying a product or service will make you happier, wealthier, better looking or improve whatever isn't bringing you satisfaction.

People spend because they want to capture the excitement shown in advertisements. When you are satisfied with what you have and your life (not trying to live like those on TV), your finances will be in a lot better shape.

3. Organization

Being organized can make you more productive and ensure that all the many issues pertaining to personal finances are addressed.

It means not paying late fees, not buying two of everything, knowing deadlines that can affect your finances and getting more done in less time. All these can greatly benefit your finances.

4. Discipline

You need the discipline to continue to save money for specific, long-term goals every month.

Personal finance isn't a way to get rich quick, but is a disciplined execution of your lifetime plans.

5. Reflectiveness

It's important to be able to look at your financial decisions and reflect on their results.

You're going to make financial mistakes. Everyone does.

The key is to learn from those mistakes so you don't make them again, or recognize if you keep repeating them.

6. Creativity

The economy and our earnings don't always match our expectations.

Unexpected developments wreak havoc to elaborate financial plans. When this happens, changes are needed to deal with the new circumstances. Creativity is essential to accomplish this.

Creativity allows you to make something last longer rather than purchasing it when you don't have the money. It means juggling money to stay out of debt rather than simply paying with a credit card. It means finding a cheaper alternative when money is tight.

In these ways, creativity plays a large role in keeping finances in order.

7. Curiosity

Having curiosity helps you learn, study and improve yourself.

The curiosity of wanting to know more, to take the time to study and then take what is learned and put into practice is an important process that is driven by curiosity.

8. Risk-Taking

To build wealth, one needs to be willing to take risks. This doesn't mean uncalculated risks. It means weighing all the options and taking calculated risks when appropriate.

The stock market has risks involved, but over the long term, history shows that it provides good returns on money that is invested wisely. Those who fear risk altogether end up saving money in accounts that likely lose money to inflation in the long run.

9. Goal-Oriented

The importance of setting and working toward goals is obvious. If you don't know where you are going, it's difficult to get there. It helps your personal finances immensely if you have money goals and are motivated to reach the goals that you have set for yourself.

Those who lack goals don't have a road map to take them to the financial destination they want.

10. Hard- and Smart-Working:

Creating wealth and staying out of debt rarely comes about without a lot of hard work.

Many people might hope that the lottery will solve all their financial problems. The true path to financial freedom, however, is to work hard to earn money while educating yourself to continue to have more value and increase your salary.

You may not possess all of the above traits. But knowing them can help you make changes so that you nourish the ones that you have and obtain the ones you're missing.

Ultimately they will help you with your personal finances and create a plan to accumulate the wealth you desire.

Copyrighted, TheStreet.Com.

LIVING GREEN IN YOUR HOME !

Richard Chimniak — Fri, 19 Jan 2007 13:43:00 GMT

1. LAMPS - Replace all your lamps with compact fluorescent bulbs (ENERGY SAVINGS of two-thirds)

2. BATHROOM - Turn off tap/faucet when brushing your teeth ( SAVINGS 10 gallons a day per person, Family of four equals 14,400 gallons per year)

3. HOME OFFICE - Computer, printer, fax, phone, speakers..etc can use the equaviant of a 150 watt bulb left on 24/7. TURN THEM OFF AT NIGHT use a power strip to turn them off all at once. (SAVINGS - $100 per year)

4. BASEMENT - Set the Hot Water Heater to 120 degrees. (SAVINGS Higher settings waste up to $200 per year)

5. HALLWAY - Buy a programmable thermostat and program the settings for the day, night and vacation periods (SAVINGS - up to $150 per year)

6. KITCHEN - Buy ENERGY STAR- labled appliances. Run your dishwasher only when full. Scrape your dishes rather then rinising them. (SAVINGS- Average dishwasher uses 4-8 gallons of water per load. Washing by hand for 10 minutes uses 20 gallons of water with the faucet running, filling the sink uses 5 gallons for washing and 5 gallons for rinsing)

7. OUTDOORS - Plant a trees and shrubs (SAVINGS- one mature tree takes care of pollution from 13 cars)