Steady Improvement in School District, County, State

San Mateo County students scored higher than the state average on standardized testing, and Belmont area students overall bettered their own 2010 performance.

The 2011 Standardized Testing and Reporting (STAR) results showed steady improvement across the state. The results, released this week by the California Department of Education, show mean scores, but also rank student performance in categories from advanced to far below basic.

Sixty-three percent of county students ranked at a proficient or advanced level in language arts, compared to the state's 54 percent. They also trumped the statewide averages in math and science.

"This is certainly no small accomplishment, particularly given the ongoing fiscal realities facing schools and districts that have resulted in reductions in staffing and programs," Gary Waddell, deputy superintendent of instructional services for the San Mateo County Office of Education, said in a statement.

In the San Carlos Elementary District, the majority of students in the district in grades 2-11 ranked in the advanced bracket in English-language arts, with the exception of grades 3 and 6. Forty-nine percent of sixth-graders ranked as advanced. Arundel Elementary second-graders students ranked the highest, with 72 percent ranking as advanced in English and 70 percent in math.

More than 71 percent of White Oaks Elementary fourth-graders were ranked as advanced in English-language arts.

Last year, 48 percent of the Carlmont High School 10^th-grade class ranked at an advanced level in language arts. This year, the number leapt to 56 percent. In 2010, 67 students performed at an advanced or proficient level in science, but by this year, 73 scored as well.

Some 4.7 million students took the tests this year. California educators saw the highest scores since STAR testing began in 2003, with 54 percent scoring proficient or higher in language arts and 50 percent doing so in math.

“The significant and sustained improvement we’ve seen for nine consecutive years prove how hard teachers, school employees, administrators, and parents are working to help students achieve despite budget cuts that have affected our schools,” said state superintendent of schools Tom Torlakson in a statement.

However, Torlakson lamented the achievement gap that persists for African-American, Latino, English-learning and low-income students.

“We have more work to do to make sure every student receives the world-class education he or she deserves,” he said. Waddell said narrowing the gap remains a critical measure of the success of San Mateo County schools.

At Carlmont, 54 percent of Latino ninth-graders scored at acceptable to advanced levels in algebra and 6 percent in general math. Fifty percent of ninth-graders and 28 percent of 11^th-graders did as well in language arts.

Examining Your Credit History

As indicated in last weeks post, your credit report and history are key to obtaining your home loan. We encourage you to view your credit report yourself, prior to the lender’s viewing of it, by contacting one or all three of the major credit reporting companies: Equifax, Experian, and TransUnion. All you have to do is call and request it. Once you receive it, check the "high credit limit," "total loan," and "past due" columns. It is a good idea to get copies from all three companies to assure there are no mistakes since any of the three could be providing a report to your lender. Fees, ranging from $5-$20, are usually charged to issue credit reports.

Credit reporting companies:

• Experian (800) 682-7954 www.experian.com
• Equifax (800) 685-1111 www.equifax.com
• TransUnion (800) 888-4213 www.transunion.com

You can also get a copy of your credit history at the following online locations:

www.freecreditreport.com
www.creditreports.com

What if I find a mistake in my credit history?
You can correct simple mistakes by writing to the reporting company, pointing out the error, and providing proof of the mistake. You can also request to have your own comments added to explain problems. For example, if you made a payment late due to illness, explain that for the record. Lenders usually understand about legitimate problems.

What about my overall (or FICO) score? What does it mean?
Prior to the late 1990s, credit scoring had little to do with mortgage lending. When reviewing your credit worthiness, an underwriter would make a subjective decision based on past payment history. Then things changed.

Lenders studied the relationship between credit scores and mortgage delinquencies and found a definite relationship. Almost half of those borrowers with FICO scores below 550 became ninety days delinquent at least once during their mortgage. On the other hand, only two out of every 10,000 borrowers with FICO scores above eight hundred became delinquent.

When can I stretch the percentages?
Depending on your area's housing market, lenders sometimes will allow you to stretch their allowable debt ratios. One of the best ways to encourage your lender to do so is to increase your down payment, as indicated in the following chart:

Allowable Monthly Housing Expense

Underwriters sometimes also will stretch the ratios for other "compensating factors," including:

• Strong cash reserves after close of escrow
• A new payment that’s only slightly higher than current rent or mortgage payment
• A history of increasing earning capabilities
• A history of an ability to save money
• A large cash down payment

Garage Sale for Condo & Apartment Residents

San Carlos Green and San Carlos Together are hosting a Yard Sale for San Carlos apartment and condominium residents on Saturday, Sept 10th at Central School. They are in need of residents who need to "get rid of stuff". The cost for a space at the event is $10 for a 20x20 space. Click on the link to register by September 3rd!

San Carlos Green

www.sancarlosgreen.org

San Carlos Green and San Carlos Together are hosting a GIANT YARD SALE for everyone in San Carlos that lives in an apartment or condominium. If you have been wondering how to get rid of all that "stuff"--now's your chance.

Understanding Your Credit Score

What Is A Credit Score?

When lenders evaluate a loan application, a process called underwriting, they try to evaluate your ability and willingness to repay the loan. They judge the borrower’s ability to repay by reviewing the income and stability of past earnings. This practice helps the lender to determine if the borrower can afford the loan payments. The review of past credit history is used to judge the willingness of the borrower to repay the loan.

Lenders want their evaluation to be as accurate, objective and consistent as possible. To help achieve this goal, home mortgage lenders use credit scores to assist in the underwriting process. Credit scores are numerical values that rank individuals according to their credit history at a given point in time. A credit score is based on past payment history, the amount of available credit, and other factors. According to Fannie Mae and Freddie Mac, two large investors in mortgage loans, credit scores have proven to be very good predictors of whether a borrower will repay his or her loan.

Credit scores are just one of many factors considered in the underwriting process. The lender will review the many components that make up the financial situation of a borrower. Even when a credit score is low, there are other factors that could overcome the negative credit issues and satisfy other underwriting criteria.

What is a FICO Score?

"FICO" scores are a type of credit score developed by Fair Isaac & Company. FICO scores use credit bureau information to obtain a score which indicates how likely someone is to pay their loan payments on time. FICO scores range from approximately 350 to 900. The higher the score, the lower the probability of default on the loan.

How Can Credit Scores Affect the Price of the Loan?

Just as credit scores are one factor in determining loan qualification, they may also be a factor in determining the price of the loan. The price of a loan means the interest rate and the points charged by the lender. The price charged for a loan will be higher or lower depending on various factors.

Credit scores are used in determining the price of a loan because they are believed to be good predictors of a borrower’s ability and willingness to repay the loan. Therefore, applicants with lower credit scores may pay higher prices for their loans because of the higher risk of default and loss on the loan. Many home loans are sold to investors, and investors will pay a more favorable price for loans they feel have a low risk of default.

There are many other factors relating to an individual borrower’s situation that may also affect the price of a loan, often even more than credit scores. These include the type of property securing the loan, the amount of the borrower’s equity in the property, the value of the property compared to property value in the area, the lender’s cost to make the loan and the type of loan selected. For example, a loan secured by a single family residence may have a lower price than a loan secured by a condominium because condominiums may be more difficult to sell than single family residences. Similarly, the price of a loan for which the borrower has made a 20% down payment may be less than a loan for which the borrower has made a 5% down payment because the first borrower has more equity in the property and, thus, a greater incentive to make the payments of the loan.

San Carlos School District looking to expand

San Carlos' four elementary, one charter and two middle schools are getting so crowded that a new campus may be needed, district Superintendent Craig Baker said last Monday.

"They are slightly over the capacity," Baker said. "Our kindergarten classes keep getting higher every year and it's been that way for the last seven years. It's a trend that doesn't seem to be going away."

Baker will discussed the San Carlos School District's space needs at a meeting last week with two city council and two school board members. Talk of a new campus is preliminary, he said, noting that no site has been chosen, no potential funding sources identified and no grade levels determined.

But Baker acknowledged that the city's eastern side would be a logical location for a new school, if a site is available.

"Where is there land in a small town like this?" he said. "We'll have to see."

That's one reason the district is bringing the question of a new campus to the city-school committee. If the city has some available land, Baker suggested, maybe a building could be constructed and shared by a school and city parks and recreation facility.

He said the district may eventually ask voters to approve a bond measure or parcel tax to pay for a new school.

"That's certainly an option," Baker said. "But we're not at that stage of the process yet."

Next year the district will have more than 3,200 students in schools ideally designed for 2,600,

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said Seth Rosenblatt, vice president of the school board.

"It appears we're victims of our own success," Rosenblatt said.

"The school district has done a good job and the city has become that much more desirable for young families."

The district's Academic Performance Index, or API, score is an enviable 899 out of 1,000, 99 points above the state goal. The API number is well-known to parents -- and the real estate agents trying to sell home buyers on San Carlos.

While schools are crowded, class sizes are still manageable, Baker said. Kindergarten through third- grade classes are capped at 24 students, fourth grade at 28 and middle school classes at 32, he said.

But that could change, he said, noting that over-enrollment also crowds out opportunities for programs such as music and physical education.

"You need the space to provide that kind of well-rounded education," he said.

Estimate Your Buying Power

Lenders use two standard (but somewhat flexible) guidelines to determine how much of a monthly mortgage payment you can afford. The first guideline is that your household should spend no more than 28 percent of its gross monthly income (before taxes) on monthly housing expenses, including: mortgage principal and interest, hazard insurance, real estate taxes and private mortgage insurance, if applicable. However, some lenders will stretch that figure to 33 percent. The second guideline is that your monthly household expenses (as outlined above) plus other debt should not exceed 36 percent of your gross monthly income, although some lenders will stretch this to 38 to 40 percent. How can I estimate how much of a monthly mortgage payment I can afford? First, calculate your monthly household income, including that of your co-borrower, if you have one. In addition to regular wages, don’t forget to include overtime, bonuses, commissions, dividends/interest, alimony/child support and any other income. A. Your Maximum Allowable Housing Expense After you total your gross monthly income, multiply it by 28 percent to get your maximum allowable housing expense. 1. Gross Monthly Income $ 2. Multiply By 28% x 28% 3. Your Maximum Allowable Monthly Housing Expense $ B. Your Debt Now, determine your debt. Credit cards, car payments, student loans, alimony or child support should be included here, as should any debt incurred by your co-borrower, if you have one. 1. Installment and revolving debts (credit cards) $ 2. Car Loans $ 3. Student Loans $ 4. Alimony/Child Support $ 5. Other Long-Term Monthly Debts $ Total Debt $ Now that I know this, what can I afford relative to my overall debt? Most lenders generally will allow you to allocate up to 36 percent of your household income to overall debt, although some lenders will allow you to go up to 40 percent under the right circumstances, including a larger down payment. You can calculate your maximum allowable combined housing and monthly debt in the space below:

Homes and Hope - The Clarke Team Supports Habitat for Humanity

	During the month of August, we invite you to help deserving families in our community by purchasing a $2 raffle ticket in support of our Homes and Hope fundraising raffle benefiting Habitat for Humanity. In return, you will be entered into a raffle drawing with the opportunity to win a host of fabulous prizes, including the grand prize of $5,000 generously donated by Princeton Capital. Proceeds from the Homes and Hope fundraiser will benefit Northern California Habitat for Humanity affiliates in 2012. Together, we can help provide homes and hope for deserving families.

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