Yes, Interest on Home Equity Loans is Still Deductible by Robert Freedman on March 5, 2018

There’s been confusion since the big tax law was enacted over the deductibility of interest on home equity loans. NAR has been saying that the interest is still deductible for the part of the loan that’s used for home repairs, renovations, and additions. And that’s the correct interpretation, according to the IRS. The agency confirmed that in a memo about a week and a half ago. VRE 82 image The part of the loan that’s used on the house to fix something or improve it remains deductible under the new tax law. Loan proceeds that are used for personal living expenses or anything not related to improving the home is not deductible. The clarification is looked at in the latest Voice for Real Estate news video from NAR. The video also looks at an important vote in the House on so-called drive-by lawsuits. These are lawsuits filed by people who are using accessibility requirements under the Americans with Disabilities Act to extract fees from small property owners. People are sending letters to property owners alleging they have an ADA violation and threatening a lawsuit unless the owner reaches a settlement with them. The person sending the letter typically doesn’t even say what the alleged violation is. The only way the owner can find out is by going to court. Most owners end up settling as the cheaper alternative and if there was ever any violation the owner never finds out what it is. The House passed a bill requiring people who send these letters to identify what the alleged violation is and to give owners a chance to correct the problem before taking them to court. It’s a solution that addresses a clear abuse of an important law and NAR supported its passage. The bill still has to be taken up in the Senate. Other topics in the video include NAR’s Commitment to Excellence initiative, which will roll out later this year, to give NAR members a chance to voluntarily assess how well they perform on key aspects of their business, including technology, the Code of Ethics, and the forms and contracts they use. The video also gives an update on home sales—they’re off to a slow start this year, mainly because of inventory shortages in many markets, especially among lower-cost starter homes—and what’s happening in commercial real estate. Briefly, transaction volume on small cap properties is doing okay but volume on large cap properties is slowing down.

3 Secrets for a Better Retirement in 2018 By ELIZABETH O'BRIEN January 1, 2018 Retirement, like all life stages, is a work in progress. Whether you’ve been out of the paid workforce for days or decades, there’s always room for tweaks to improve your finances—and your fun quotient. “No matter what step you’re at, take some time to say, ‘what’s next?'” advises Keith Lawrence, co-author of Your Retirement Quest. Here are three steps for making your retirement even better in 2018: Check Your Spending It’s common to worry about your spending rate in retirement. A conservative way to ensure your money will last is to avoid dipping into your principal and instead let the income and investment gains your portfolio generates cover your living expenses, along with Social Security and any other income sources. If your portfolio isn’t big enough to generate enough income, or the markets go into a prolonged slump, a general rule of thumb holds that you can annually withdraw 4% of your nest egg—regardless of its size—and never run out of money throughout retirement. While some financial experts have questioned the sustainability of the so-called 4% rule amid expectations of lower future investment returns, it’s still a reasonable starting point, many advisors say. It’s important to note that this 4% should be enough to cover both your regular expenditures and one-time items like a new roof or a big vacation, says B. Kelly Graves, a certified financial planner in Charlotte. “Retirees should save up for the large expenses and build a kitty for them,” he says. A tool like T. Rowe Price’s retirement income calculator can give you an estimate of whether your portfolio is on track to meet your spending goals in retirement. The tool estimates how much of your monthly income will come from your own portfolio versus Social Security, pensions and any other income sources, and projects how long your savings might last. If your goal is to spend, say, $2,000 each month from your investments, you can ask your brokerage firm to set up a “paycheck”: the firm will transfer the desired amount each month from your investment portfolio to a checking or savings account. (It’s best to create a “cash bucket” for this purpose, so you’re not forced to sell stocks in a down market to generate the needed amount.) It gives many retirees peace of mind to replicate the paycheck they got while working, says Jay Hummel, head of direct sales and service at American Century Investments. Take That Big Trip You want to ensure a sustainable spending rate in retirement so you don’t run out of money. But you don’t want to be so conservative that you miss out on the fun that’s your reward for a lifetime of hard work. If you’re not comfortable doing the math yourself, a good financial planner can assess your situation and give you permission to spend. (Certified financial planners have passed a rigorous exam and must adhere to a code of ethics.) If your budget and your health allow, don’t delay checking big-ticket activities off your bucket list, Hummel says. That means, go ahead and take that wine tour of Italy, or the snorkeling trip to the Maldives that you’ve been dreaming of for years. “Health issues happen, family issues happen,” Hummel says, and folks wind up with regrets: “Boy, we really wish we could’ve done it when we had the opportunity to.” Since research suggests that experiences bring more happiness than things, you’ll be boosting your bliss in the process. At the same time, proceed with caution on making big purchases, Hummel says. He’s seen retirees rush to buy second homes in places where they enjoy vacationing. But then they feel pressure to spend a lot of time there to justify their investment. This can lead to stress and marital discord, if one spouse wants to spend every vacation at the second home while the other wants to spend time with family members or explore new vacation destinations. A better bet? Use the 6% to 8% of the home’s value that you would spend in annual carrying costs on the second home and stay in a hotel or a short-term rental instead, Hummel says. If you and your spouse both still love the location after test-driving it for a few years, then you might be ready to buy. Make Some (Good) Friends Loneliness can damage your physical health as much as smoking, research indicates. Feeling alone may also contribute to your risk of developing dementia. (It’s thought that loneliness produces an inflammatory response in the body that’s similar to what an illness might produce.) To combat these health risks, you need “2am friends,” Lawrence says. Not to be mistaken for Facebook friends, “2am friends” are people who, as their name suggests, you can call in crisis in the middle of the night with the expectation that they’ll pick up and do their best to help. You need at least several of these friends and your spouse, while potentially a great source of support, only counts as one, Lawrence says. Affinity groups are a great way to develop close friends. Choose something you love to do, whether that’s reading or restoring old cars, and chances are there’s a group devoted to it near you. Check the web site Meetup.com for like-minded people. Volunteering is another great way to make friends; volunteermatch.org is a site that connects volunteers with worthy causes.

3 ways tax reform will hit home values

Real Estate Special Report by Kathryn Vasel @KathrynVasel January 10, 2018: 12:49 PM ET The recent surge in home values could slow thanks to the freshly passed tax overhaul. Sweeping tax legislation was signed into law by President Trump at the end of 2017, and experts said some of the changes, including a lower threshold on the mortgage interest deduction, a cap on the state and local deduction and a higher standard deduction, could be a drag on home appreciation. "In a way, the federal government is extracting itself of its encouragement of home ownership," said Jonathan Miller, president of real estate appraisal firm Miller Samuel. The hit to home prices will depend on location. "There are clear winners and losers," said Adam Kamins, senior economist at Moody's Analytics. "States in the Northeast and along the coasts are hit pretty hard, and states in the South and Mountain West come out ahead." Home prices nationwide are expected to be around 4% lower over the next 18 months compared to where they would have been absent any tax changes, according to report from Moody's Analytics. But that 4% decrease will be unevenly distributed. Homeowners in high-taxed states and expensive housing markets could face the brunt of the impact thanks to the scaled-backed deductions on mortgage interest and property taxes. For example, home prices in Westchester County, a New York City suburb, and Essex County in New Jersey, could be 11% below where they would have been without the tax legislation, according to Moody's. In Manhattan, New York, and Lake County, Illinois, the difference could be a 10% decline. Here are a few forces that could drive down home prices: 1. Lower mortgage interest deduction could keep high-end buyers on the sidelines The new tax law, which is now in effect, lowers the amount of interest on mortgage debt that can be deducted to $750,000 -- down from $1 million. That makes it more costly for buyers of expensive homes to borrow. Plus, the mortgage interest deduction is less valuable under the new tax code. In order to take the deduction, homeowners must itemize. But because the standard deduction has increased to $24,000 for couples, fewer people are expected to. The smaller cap means only 14.4% of homes are worth enough to make itemizing advantageous, according to Zillow. Shrinking tax breaks could force sellers to factor that into their asking price. ... and sellers reluctant to sell The lower cap applies to new mortgages. That means mortgages closed before December 15, 2017 are subject to the old $1 million threshold, which could mean homeowners with mortgages above $750,000 have less incentive to trade up to a bigger home, adding more pressure to the already tight housing supply. 2. Property tax cap makes buying less attractive The new tax law also places a $10,000 cap on the amount of state and local property taxes -- plus income or sales taxes -- filers can deduct. Real estate agents in high-taxed markets frequently tout the ability to write off property taxes to potential buyers. But that selling point won't be as strong as it used to be. More than four million Americans pay more than $10,000 in property taxes alone, according to ATTOM Data Solutions. In some counties, more than half of residents pay at least that much. In Westchester County, 73% of homeowners pay above the new cap in property tax, according to ATTOM. "By setting a $10,00 cap nationwide, you are placing high-cost markets on the same plane as low or middle-cost markets," said Miller. "Every homeowner has a dollar amount they can afford or want to spend on a purchase. The more these other costs rise, the less room there is for payment of principal and interest." 3. Home loans could get more expensive Experts also worry that adding an influx of cash through tax cuts while the economy is at full employment could increase inflation pressure, which may lead the Federal Reserve to increase interest rates, sending mortgage rates higher. Mortgage rates have been sitting below 4% since mid July, which has helped offset the rise in home prices. But if rates move higher, borrowing becomes more expensive, putting high-cost homes out of reach for many buyers. CNNMoney (New York) First published January 10, 2018: 12:49 PM ET

Does the American Dream no longer include homeownership?

While it has no official definition, the American Dream has always been the notion that citizens of the United States can better their lot in life through hard work. That encompasses the idea that hard-working kids of hard-working parents would have a better life than the previous generation, and homeownership has generally been considered part of that. A decade after the housing market crashed, the homeownership part of the American Dream has become more elusive, according to a new study from Pew Research Center. The report, which analyzed Census Bureau housing data, showed that more United States households "are headed by renters than at any point since at least 1965." Between 2006 and 2016, the U.S. added 7.6 million households, but "in part because of the lingering effects of the housing crisis," according to Pew. During that 10-year period, the number of households renting their homes jumped from 34.6 million (31.2% of the total) to 43.3 million (36.6%). That tops the relatively recent high watermark of 36.2% renting in 1986 and 1988, while coming in just below 1965's 37% renters rate. Young adults lead the way While young adults have historically been more likely to rent than other age groups, the numbers are increasing. More than 6 in 10 (65%) of households headed by someone under 35 rent, Pew reported. That's up from 57% in 2006 but it's not as big a gain as the 35-44 age group made where the percentage of renters jumped from 31% in 2006 to 41% in 2016. The numbers rose among Americans 45-64 as well, going from 22% in 2006 to 28% in 2016. In fact the only demographic studied that did not post an increase was those 65 or older who stayed flat at 20%. It's not that people don't want to buy In many cases the increase in renters has been blamed at least partially on Millennials not wanting to be tied down or not working hard enough to afford buying. In fact most renters want to buy, according to a separate Pew report: "In a 2016 Pew Research Center survey, 72% of renters said they would like to buy a house at some point. About two-thirds of renters in the same survey (65%) said they currently rent as a result of circumstances, compared with 32% who said they rent as a matter of choice. When asked about the specific reasons why they rent, a majority of renters, especially nonwhites, cited financial reasons." While mortgages are cheap on a historical basis, inventories remain low, prices have soared, and mortgage standards have remained tough. Banks and other lenders may have more flexibility than they did right after the housing crisis, but the days of stated income, low-doc, or even no doc loans are largely gone. Add in the fact that some capable, qualified buyers have decided to put off homeownership due to lingering fears over the economy and you can see why homeownership has declined. Americans still want to buy houses. Some of us can't afford to right now, while others are waiting for better opportunities. Many simply lack the means to reasonably expect ever to be able to make a purchase. Owning a home remains part of the American dream, at least for most Americans, but it's also a less attainable goal than it was for previous generations.

What You Need To Know About New Tax Law

(CNN Money) — It’s official. Congress has ushered through the first major tax overhaul since Ronald Reagan was president. The measure, which President Trump signed into law on Friday, is about to shake up life for millions of Americans. It will redistribute the country’s wealth. It could sway decisions about whether to buy a home, or where to send kids to school. It could even affect when unhappy couples decide to get a divorce. As the bill becomes law, here are 34 things you need to know. 1. This is the first significant reform of the U.S. tax code since 1986. Reagan signed major legislation for corporations and individuals in 1986. Since then, serious tax reform has eluded Republicans, though they repeatedly called for it as the tax code became longer and more arcane. 2. Changes have been made to both individual and corporate tax rates. Individual provisions in the new legislation technically expire by the end of 2025, though some people expect that a future Congress won’t actually let them lapse. Most of the corporate provisions are permanent. 3. Tax reform will increase deficits by $1.46 trillion over the next decade. That’s the net number that’s been crunched by the nonpartisan Joint Committee on Taxation. The future law’s contribution to the debt will likely be even higher if individual tax cuts are re-upped in eight years. 4. There are still seven tax brackets for individuals, but the rates have changed. Americans will continue to be placed in one of seven tax brackets based on their income. But the rates for some of these brackets have been lowered. The new rates are: 10%, 12%, 22%, 24%, 32%, 35% and 37%. 5. The standard deduction has essentially been doubled. Republicans want fewer people to itemize their taxes. To achieve this, they’ve nearly doubled the standard deduction. For single filers, the standard deduction has increased from $6,350 to $12,000; for married couples filing jointly, it’s increased from $12,700 to $24,000. 6. The personal exemption is gone. Previously, you could claim a $4,050 personal exemption for yourself, your spouse and each of your dependents, which lowered your taxable income. No longer. For some families, the elimination of the personal exemption will reduce or negate the tax relief they get from other parts of the reform package. 7. The state and local tax deduction now has a cap. The state and local tax deduction, or SALT, remains in place for those who itemize their taxes — but now there’s a $10,000 cap. Previously, filers could deduct an unlimited amount for state and local property taxes, plus income or sales taxes. 8. The child tax credit has been expanded. The child tax credit has doubled to $2,000 for children under 17. It’s also now available, in full, to more people. The entire credit can be claimed by single parents who make up to $200,000, and married couples who make up to $400,000. 9. There’s a new tax credit for non-child dependents, like elderly parents. Taxpayers may now claim a $500 temporary credit for non-child dependents. This can apply to a number of people adults support, such as children over age 17, elderly parents or adult children with a disability. 10. Fewer people will have to deal with the alternative minimum tax. The alternative minimum tax, a parallel tax system that ensures people who receive a lot of tax breaks still pay some federal income taxes, remains in place for individuals. But fewer people will have to worry about calculating their tax liability under the AMT moving forward. The exemption has been raised to $70,300 for singles, and to $109,400 for married couples. 11. And the mortgage interest deduction has been lowered. Current homeowners are in the clear. But from now on, anyone buying a new home will only be able to deduct the first $750,000 of their mortgage debt. That’s down from $1 million. This is likely to affect people looking for homes in more expensive coastal regions. 12. None of this will affect your 2017 taxes. Americans won’t need to worry about these changes when they start filing their 2017 tax returns in about a month. The new laws will first be applied to 2018 taxes. 13. By the way, you can still deduct student loan interest. The deduction for student loan interest, which is up to $2,500 per year, is safe. 14. You can still deduct medical expenses. The deduction for medical expenses wasn’t cut. In fact, it’s been expanded for two years. In that time, filers can deduct medical expenses that add up to more than 7.5% of adjusted gross income. In the past, the threshold for most Americans was 10% of adjusted gross income. 15. If you’re a teacher, you can still deduct classroom supplies. The deduction for teachers who spend their own money on school supplies was left alone. Educators can continue to deduct up to $250 to offset what they spend on classroom materials. 16. The electric car tax credit lives on. Drivers of plug-in electric vehicles can still claim a credit of up to $7,500. Just as before, the full amount is good only on the first 200,000 electric cars sold by each automaker. GM, Nissan and Tesla are expected to reach that number some time next year. 17. Home sellers who turn a profit keep their tax break. Homeowners who sell their house for a gain will still be able to exclude up to $500,000 (or $250,000 for single filers) from capital gains, so long as they’re selling their primary home and have lived there for two of the past five years. 18. 529 savings accounts can be used in new ways. In the past, funds invested in 529 savings accounts wasn’t taxed — but it could only be used for college expenses. Now, up to $10,000 can be distributed annually to cover the cost of sending a child to a “public, private or religious elementary or secondary school.” This change is a win for Education Secretary Betsy DeVos. 19. And tuition waivers for grad students remain tax-free. Graduate students still won’t have to pay income taxes on the tuition waiver they get from their schools. Such waivers are typically awarded to teaching and research assistants. 20. But say goodbye to the tax deduction for alimony payments. Alimony payments, which are codified in divorce agreements and go to the ex-spouse who earns less money, are no longer deductible for the person who writes the checks. This provision will apply to couples who sign divorce or separation paperwork after December 31, 2018. 21. The deduction for moving expenses is also gone … There may be some exceptions for members of the military. But most people will no longer be able to deduct the cost of their U-Haul when they move for work. 22. As is the tax preparation deduction … Before tax reform passed, people could deduct the cost of having their taxes prepared by a professional, or the money they spent on tax prep software. That break has been eliminated. 23. … The disaster deduction … Losses sustained due to a fire, storm, shipwreck or theft that aren’t covered by insurance used to be deductible, assuming they exceeded 10% of adjusted gross income. But now through 2025, people can only claim that deduction if they’ve been affected by an official national disaster. That would make someone whose house was destroyed by a California wildfire potentially eligible for some relief, while disqualifying the victim of a random house fire. 24. … And the reimbursement for bicycle commuters. The tax code used to let you to knock off up to $20 from your income per month for the costs of bicycle commuting to work, assuming you weren’t enrolled in a commuter benefit program. That’s gone. 25. Almost everyone is now exempt from the estate tax. Before tax reform, few estates were subject to the estate tax, which applies to the transfer of property after someone dies. Now, even fewer people have to deal with it. The amount of money exempt from the tax — previously set at $5.49 million for individuals, and at $10.98 million for married couples — has been doubled. 26. Adjustments for inflation will be slower. The new legislation uses “chained CPI” to measure inflation. It’s a slower measure than what was used before. Over time, that will raise more money for the federal government, but deductions, credits and exemptions will be worth less. 27. Oh, and the individual mandate on health insurance has been scrapped. Republicans failed to repeal Obamacare earlier this year, but they managed to get rid of one of the health law’s key provisions with tax reform. The elimination of the individual mandate, which penalizes people who do not have health care, goes into effect in 2019. The Congressional Budget Office has predicted that as a result, 13 million fewer people will have insurance coverage by 2027, and premiums will go up by about 10% most years. 28. You won’t be able to file your tax return on a postcard. Trump said H&R Block would go out of business after tax reform because filing taxes would become so simple. Not quite. While doubling the standard deduction will ease the process for some individuals, there’s still a web of deductions and credits to work through. And for small businesses, filing could become even more complicated. 29. The corporate tax rate is coming down. The corporate tax rate has been cut from 35% to 21% starting next year. The alternative minimum tax for corporations has been thrown out altogether. Earnings are expected to go up as a result. 30. Pass-through entities will also get a break. The tax burden by owners, partners and shareholders of S-corporations, LLCs and partnerships — who pay their share of the business’ taxes through their individual tax returns — has been lowered via a 20% deduction. The legislation includes a rule to ensure owners don’t game the system, but tax experts remain concerned about abuse of this provision. 31. Not all CEOs think they’ll use their savings to create jobs, though. Just 14% of CEOs surveyed by Yale University said their companies plan to make large, immediate capital investments in the United States following tax reform. Capital investments, like building plants and upgrading equipment, can spur hiring. 32. Plus, the way multinational corporations are taxed is about to change. The U.S. is switching to a territorial system of taxation, which means companies won’t owe federal taxes on income they make offshore. To help the transition, companies will be required to pay a one-time, low tax rate on their existing overseas profits — 15.5% on cash assets and 8% on non-cash assets, like equipment in which profits were invested. 33. By the way, there’s a provision to rein in executive pay at nonprofits. The legislation includes a new 21% excise tax on nonprofit employers for salaries they pay out above $1 million. That may mean some well-paid executives at nonprofits take a pay cut. 34. Businesses won’t be able to write off sexual harassment settlements. New Jersey Democratic Senator Bob Menendez’s amendment born of the #MeToo moment made it all the way through. Companies can no longer deduct any settlements, payouts or attorney’s fees related to sexual harassment if the payments are subject to non-disclosure agreements. — With contributions from Jeanne Sahadi, Kathryn Vasel, Tami Luhby, Anna Bahney, Jackie Wattles, Katie Lobosco, Lydia DePillis and Matt Egan. The-CNN-Wire ™ & © 2017 Cable News Network, Inc., a Time Warner Company. All rights reserved.

What tax reform could do to your mortgage interest deduction ROBIN SAKS FRANKEL

Taking a mortgage interest deduction at tax time has long been touted as a means of encouraging homeownership, but soon you may no longer able to. Under current law, homeowners can itemize and deduct the interest paid on their mortgages up to the first $1.1 million, if their loan is used to buy or improve a first or second home. The Tax Foundation says this is the third-most popular itemized deduction, and real estate industry professionals say it’s a much-needed incentive to encourage homeownership. But with the Republican tax reform bill on brink of passing Congress, the mortgage interest deduction may be changing soon, and it could have major implications for your taxes. What they want to change The version of the Tax Cuts and Jobs Act passed by the House reduces the amount of mortgage interest that can be deducted from your taxes from the first $1.1 million of your loan to the first $500,000. It also would put an end to allowing a mortgage interest deduction on a second home, which the current law permits. Advocates for these changes say it will encourage more people to use the standard deduction, which the new plan aims to increase, and thus simplify things at tax time. Homebuilders and realty associations decry these changes, saying that it will discourage homeownership, which in turn could have a negative financial impact for many. “Our major concern is less incentive to buy a home, which could mean lower homeownership rates in America,” says Lawrence Yun, economist for the National Association of Realtors. “Given that home values have always provided an opportunity to build wealth, we may see greater wealth inequality in the future.” What this change could mean for you If the House’s version takes hold, halving the mortgage interest deduction is more likely to benefit future homebuyers in less expensive areas. But in major metropolitan areas, homes under half a million dollars are harder to find, and the change is likely to penalize those who can afford pricier housing. The Senate’s version of the act, which is still being ironed out, mirrors the current rule, allowing for a deduction on the first $1 million in any debt used to buy, build or make a significant improvement to a main or secondary home. The biggest change in here is that if you refinance your mortgage, the interest in that debt won’t be eligible for a deduction. This version is less likely to disrupt the status quo. Geographically skewed In 2017, nearly 10 percent of all purchase loans were over that $500,000 threshold. That works out to about 215,000 purchase loans so far in 2017, according to Daren Blomquist, senior vice president of ATTOM Data Solutions. If you’re in the market for a home, you’ll probably be in the 90 percent who spend under the threshold. But that will depend on where you live. “It will disproportionally impact certain areas. Certain homeowners need to be cognizant of this,” says Blomquist. For example, most major metropolitan areas and coastal regions are pricier to live in than other parts of the country and are less likely to have homes priced under $500,000. Blomquist cites California as an example, where as many as 31 percent of the mortgage loans in the state are for amounts above that $500,000 threshold. Is this a big deal? Although real estate groups and the home-building industry have argued vociferously against changing the mortgage deduction, it’s likely that any change isn’t going to make or break your decision to purchase a home. “I don’t think it’s going to affect how consumers are going to buy homes whatsoever,” says Michael Seward, owner/broker of a real estate company in Palmer, Massachusetts. “When people buy a home they don’t do so because they’re getting a mortgage deduction.”

How to Buy a Home Even if You Have Bad Credit

Experts Answer Your Top Questions About Buying a Home With Bad Credit Your credit score is one of the crucial determining factors in whether you can qualify for a mortgage. “The higher your score, the less risky you appear on paper,” says Staci Titsworth, a regional manager at PNC Mortgage in Pittsburgh, PA. If that sends shivers up your spine, keep reading. We’re here to help. The reality is that the average U.S. household has over $15,000 in credit card debt. You’re not alone if you’re wondering: Can I even try buying a home with bad credit? The answer is yes, but for a smooth home-buying journey, you’ll want to take care of any financial blips on your report now. Here we share expert answers to your questions, including exactly what a credit report is and how to raise your score to get ready to buy a house. What exactly is a credit score? It’s common practice for mortgage lenders to check your credit score, which is calculated based on the information that appears on your credit report. Five aspects impact your score, each varying in importance: payment history (35%), debt-to-credit utilization (30%), length of credit history (15%), credit mix (10%), and new credit (10%). A quick primer: Payment history. You need to make payments on time, since one late payment can significantly ding your score. One example: A 30-day delinquency can cause as much as a 90- to 110-point drop on a score of 780 for a consumer who has never missed a payment before, according to Equifax. Debt-to-credit utilization ratio. This is how much debt you’ve accumulated on your credit cards divided by the credit limit on the sum of your accounts. Credit experts recommend keeping this ratio around 30%. If you’re maxing out your credit cards each month, you could be damaging your credit score in the process. Length of credit history. Having a longer credit history raises your score. Since credit agencies look at the age of your oldest account, the age of your newest account, and the average age of all your accounts, you should keep all of your accounts open—even those with zero balances, says credit expert Bill Hardekopf. Credit mix. It helps your score to have a combination of different types of credit accounts, including credit cards, retail accounts, installment loans, car loans, and mortgage loans. (You’re on your way to getting the last one.) New credit. Each time you apply for a new credit account, you trigger a “hard inquiry” on your credit, which dings your score (typically by five points). Therefore, avoid opening multiple credit accounts at the same time, says Hardekopf. Doing so will lower the average age of your credit accounts and hurt the length of your credit history. Caveat: Your credit report doesn’t contain your actual credit score. However, your credit card company can most likely provide your score to you for free, or you can contact a nonprofit credit counselor to find out your score. What is an ideal credit score? A perfect credit score is 850, but only about 0.5% of consumers reach that number, according to Fair Isaac Corporation, creator of the widely used FICO credit scores. Once you’re over 740, you’re considered to be in the best range for mortgages and should be able to qualify for the best interest rates, says Chris Hauber, a mortgage loan originator with Hallmark Home Mortgage in Denver, CO. If your score is in the 700s, you should still be able to qualify for an attractive interest rate. For conventional loans, most lenders look for a credit score of at least 620, says Hauber. At a minimum, applicants should have at least a 660 credit score to land a decent interest rate and avoid jumping through additional hoops to qualify for a loan. Can I get a mortgage if I don’t have a credit history? Ideally, you opened a credit card account by age 20—or at least started to build credit by becoming an authorized user on your parents’ card when you were a teenager. (Remember, the length of your credit history plays a major role in how your score is calculated.) But if you don’t have any credit established, there are other ways to qualify for a mortgage and establish a credit history. “Many lenders will look at monthly payment obligations that don’t necessarily show up on a person’s credit report,” says Titsworth. If you have a good track record of making your car loan payments and paying rent on time, that will help, say experts. Those habits are usually indicative of a responsible credit user. Is bad credit worse than no credit? No one’s perfect and mistakes happen. Maybe you forgot to pay the minimum balance on your credit card bill once or twice—or you recently met with a mortgage lender to discuss your financing options and discovered errors on your credit report. Whatever the case may be, you can always take steps to heal your credit. “Poor credit can be managed,” Titsworth points out. Moreover, there are loan programs designed to help people with mediocre credit buy a home. Federal Housing Administration (FHA) loans have some of the lowest credit-score requirements at 580 with a 3.5% down payment. Loans backed by the Department of Veterans Affairs let military veterans put as little as 0% down on a property without having to pay private mortgage insurance. How can I boost my credit score before I buy a home? To get your three-digit number up to snuff, start by addressing the financial habits that damaged your score in the first place. Pay all of your bills on time each month. Sounds tough, but it is the easiest way to boost your score, says Hardekopf. If you need help adjusting your spending habits and designing a budget that makes sense for you, consider meeting with a financial planner (you can find one at NAPFA.org). Pay down your credit card debt. Since credit scores are often the result of having a high debt-to-credit utilization ratio, one of the best ways to improve your score is to get rid of existing debt, says Hauber. Many experts use the 30% rule of thumb: Charges to your credit cards shouldn’t exceed one-third of your total available credit limit. You may also be able to raise your score by requesting a credit line increase from your credit card issuer; this would effectively reduce your debt-to-credit utilization ratio. It typically involves just making a phone call or submitting a request online. What if I notice errors on my credit report? Carefully review your credit reports for errors. You’re entitled to a free copy of your credit report every 12 months from each of the three major credit-reporting agencies (Equifax, TransUnion, and Experian). One in four Americans said they spotted errors on their reports, according to a 2013 Federal Trade Commission survey. The mistake may be something as simple as someone else sharing the same name as you and your bank mixing up your accounts, says Sylvia Gutierrez, a loan officer in South Florida and author of Mortgage Matters: Demystifying the Loan Approval Maze. If you spot an error, alert your creditor immediately. Once your creditor confirms the error, the company will submit a letter to Equifax, TransUnion, and Experian individually to get the error removed. If the error is just on one bureau’s report (like a misspelled last name), contact that agency specifically to rectify the problem. Hopefully, you spotted it early in the home-buying process, since “it can take time to get errors removed from your report,” says Titsworth. If you’re already in the process of purchasing a home, ask your loan officer to help you speed up the error removal. Can I get black marks removed from my report? If you’re the one responsible for blemishes on your report, such as a missed payment, contact your creditor and ask for a deletion. While this likely won’t work for a serial late payer, it might be granted if you’re a one-time offender; it also helps if you’ve been a loyal customer. If the creditor agrees to the deletion, they’ll send letters to the credit bureaus (the same way they do for errors) requesting that the negative information is removed from your report. Then the onus is on you to gather documents proving that changes that have been made—such as a new credit card statement or letter of deletion—and then have your lender request an updated score from the credit bureaus. This process is often referred to as a “rapid rescore” and can lead to an updated credit score in days instead of months, which can make all the difference when you’re trying to get preapproved for a home loan in a competitive market. Should I get help from a credit-counseling agency? First, you need to understand the difference between a credit-counseling agency and a debt-management company. If you’ve fallen behind on credit card payments, a credit counselor can help you create a plan to pay back your creditors and better manage your money for a relatively low cost. A debt-management company, meanwhile, will negotiate with your creditors to try to reduce the amount of debt you owe—but many debt-management companies charge a large fee for their services. Unless you’re seriously in the hole, a debt-management company probably isn’t the way to go. Whether you should meet with a credit counselor, meanwhile, depends on how complicated your financial situation is and what kind of guidance you want. If you have debt on only one credit card and simply have to pay off the balance, you already know what you have to do to mend your credit score. If the situation is more complicated (e.g., you owe money on several credit accounts and don’t know which to pay off first), a session with a credit counselor may help you devise a payoff plan. Some nonprofits, like the Consumer Credit Counseling Service, offer free consultations.

5 Secret Sources of Down Payment Money

The down payment: It’s the biggest test of our ability to save money that most of us will ever face, and one that stands between us and our ability to become a homeowner. It can be tricky to stockpile enough money for a down payment, but it’s also an opportunity. The more money you put down, the more choice you’ll have about how much house you can afford and what you want the monthly payment to be. Plus, building up a cash cushion will definitely give you peace of mind once you’re in your new home. Here’s How to Boost Your Down Payment Savings 1. Go local. Gone are the times when nationwide programs allowed for the zero-down loan, the federal homebuyer tax credit, and the use of tax credit funds toward down payment and closing cost requirements. Where have all the down payment assistance programs gone? Local. The best programs of this sort are now largely operated by local governments—primarily cities and counties—and the rules for qualifying vary. Some are exclusively for buyers with low or moderate incomes; others are dedicated to helping first-time homebuyers. Many of these programs have a limited pool of funds that may run out over the course of the fiscal or calendar year, and almost all of them require buyers to jump through some hoops, such as completing homeowner education classes or choosing a home that meets specified criteria. To find these programs, look for links for homebuyer assistance on your city, county, and state websites. Only trust websites that end in .gov—scammers posing as governmental agencies abound. Local real estate agents and mortgage brokers often know the ins and outs of these programs too. 2. Hit up your relatives. Most mortgage programs will allow for some portion of your down payment to come in the form of “gift money,” which is exactly what it sounds like: money someone gives you to help you buy a home. While gift money may sound great, be aware that taking gift money from a relative can create relationship issues or come with emotional strings attached. Plus, lenders frequently require that gift money be accompanied by a letter that clearly states the money is a gift, not a loan. The lender may also want to see a bank account statement from the giver, proving that the money was theirs to give. 3. Ask your employer. Universities and municipal departments that employ first responders such as police and firefighters frequently make down payment and other home-buying assistance programs available to staffers. Large employers or even smaller companies seeking to lure top-level recruits do something similar: relocation assistance programs. Check in with human resources to explore whether any such assistance is available—and if you happen to find yourself a hot prospect on the job market, consider trying to negotiate relocation or down payment assistance into your offer package. 4. Tighten your budget. Get gut-level real with yourself about what’s truly important to you. If the answer is buying a home, then it’s time to examine your spending and look for leakage that you can redirect to your down payment savings. If you spend $20 a workday on a morning coffee and bagel and a takeout lunch, that’s at least $400 per month—almost $5,000 a year you could be saving. And those numbers are not inflated to reflect big-city prices. Nor is the $100-a-month cable bill, the $15 yoga class, or the $2,000 vacation. Instead, brown-bag your lunch, stream TV shows and movies from one online source, and rally your friends to do a workout class together from that streaming site. Cut hotel costs by renting a private room or small apartment on a site such as VRBO or Airbnb. The key is to shift out of spending autopilot and to transfer the saved money into a separate savings account that’s earmarked for your down payment. 5. Borrow from yourself. There are situations in which it may make sense to borrow a few thousand dollars from your 401(k) or IRA. Some retirement accounts allow you to borrow against or pull out funds, penalty-free, to apply them toward your down payment on a home. Is it advisable for everyone, in every situation, to deplete their 401(k) or IRA to plug that cash into a house? Absolutely not. But if getting your down payment to the 20% mark by borrowing from your 401(k) gets your mortgage interest rate down and allows you to repay that cash to your own retirement account (versus to your mortgage lender) with interest, you and your financial adviser might agree that this move is right for you.

4 Ways to Cozy Up Your Kitchen for Fall

Grab your hearty soup recipes, decorative pie plates, and favorite cookbooks. Fall is here, and with just a little effort you can get your kitchen ready to make the most of it. The leaves changing color indicates the season has changed, and so follows your home decor. Decorating for the chillier fall months means incorporating warm and inviting colors and textures into your home’s interior design, specifically in the kitchen. Try these four tips to create a cozier kitchen for fall. Weave in dark textiles Fall means decorating with gorgeously textured throws, pillows, and table linens. Introduce your kitchen to an autumnal palette using dark, natural window coverings and similar table linens for a cozy effect. This look juxtaposes raw texture with soft details like fresh fruit, warm placemats, and smooth surfaces. Bank on butcher block Found most often in farmhouse-style or rustic homes, butcher block is great for countertops and tables because it’s durable and looks better the longer you have it. If you’re thinking about switching out your countertop, consider butcher block for a warm, inviting feel. If you don’t want to commit to a full countertop, try a large cutting board or table to add earthiness to your kitchen. Add pops of color If your kitchen has a blank space or accent wall, consider painting it for an inviting scene. For the fall season, you can choose to use warmer, darker colors like a deep red, warm orange, or olive or brown tone. Don’t want to paint an entire wall? Select a piece of art or two featuring deep and rich colors to create a cozy ambiance. You could even paint your cabinets or counters. Nurture indoor plants Houseplants are always good go-to decorations because they require little upkeep, and add a touch of freshness to any space. They are particularly useful in the fall because they can double as herb gardens or unique decor. Install a small indoor garden on your window sill or on a shelf near a window to have easy access to fresh rosemary, sage, and basil, even when the weather might not call for gardening. While these suggestions may seem small, they are great touch-ups to boost your festive theme this fall season. Add one or two, or mix all of the design tips for a home-sweet-home feel.

FAA considering making Surf Air flight path over Bay official

The Federal Aviation Administration is considering making the route Surf Air has used to avoid homes on the Midpeninsula – by flying over the Bay – an official fair-weather route. But an organized group of residents from Sunnyvale has turned out in force against the route saying it transfers the noise to their neighborhood. On Wednesday, the FAA held what it called an informational meeting in San Jose as part of its consideration of whether to make what it calls the Bayside Visual Approach an official charted flight path. That would mean the route could only be used when pilots can actually see the airport, but could be flown using instruments, which many pilots consider safer to do even in visual conditions. The meeting was held in the Santa Clara County Government Center in San Jose starting at 6 p.m., and many of those attending complained about the location as being far and difficult to reach from the areas affected by Surf Air flights. Nonetheless, about 100 people showed up, the vast majority of them wearing bright orange T-shirts signifying they were part of the Save Our Sunny Skies group. That group, made up of mostly Sunnyvale and Cupertino residents, is protesting the route because it brings more planes into the already congested airspace over their homes. Officials had designed the meeting to include about 40 minutes of presentations from Surf Air, the FAA and the San Carlos Airport – which is owned and operated by San Mateo County – and then move out into the lobby, where people could ask questions of the officials. But dozens from the Save Our Sunny Skies group, including a leader with a megaphone, refused to go along and said they wouldn't leave until the officials were regrouped in the auditorium to answer questions from and to the group. Officials agreed to return to the auditorium, but only after most of the meeting attendees who were not part of the Save Our Sunny Skies group had left. The route was developed by Surf Air in cooperation with the FAA after Midpeninsula residents complained about the noisy Pilatus PC-12 turboprop planes the commuter airline uses. The FAA allowed Surf Air to use the Bayside Visual Approach for a six-month experimental period that ended in January. The route takes planes over the Bay – starting in Santa Clara County near Moffett Field – as they descend toward the San Carlos Airport. The FAA has evaluated the results of the trial, during which conditions allowed Surf Air pilots to use the route about 67 percent of the time, and is now doing an environmental review. Thann McLeod, a manager of airspace and procedures, planning and requirements for the FAA, told the group that her "primary responsibility in the FAA is safety." "If something is not going to work, it's not going to work for a reason, not because I'm favoring one community over another," she said. She may have been anticipating that if the FAA decides not to make the approach official, Midpeninsula residents will be angry; if it does approve it, the Sunnyvale and Cupertino residents will be angry. Because the air space in the Bay Area is so congested, the FAA had little choice in choosing the route, she said. "We run out of room very, very quickly," she said. "This was the best we could do." "We did put a lot of thought into this procedure when we designed it," she said. Surf Air and Encompass, the company that has taken over the operations part of the SurfAir business, say that they have been working to find another air route to the San Carlos Airport and have experimented with a route that comes in from the east over the Bay and avoids more residential areas. "We need a global solution," said Charlie Caviris, the Encompass chief pilot. The route from the east "is a way that we can greatly reduce noise for communities," he said. The FAA says comments will be taken on the Bayside approach until Oct. 27. Comments can be emailed to: 9-awp-sql-cvfp@faa.gov or mailed to: Noise Concerns, AJV-W25, FAA, 1601 Lind Ave. SW, Renton, WA 98057. Comments may also be made on the FAA website, which also includes a number of presentations from the meeting. After the six-month trial ended, Surf Air pilots continued to use the route while the FAA studied the results. Existing regulations allow pilots to fly non-charted routes under visual flight conditions, but they, not air traffic controllers, are responsible for maintaining separation from other aircraft and obstacles. Surf Air started using the San Carlos Airport in June 2013, and by July of this year had 228 flights a week arriving at or departing from San Carlos. Its customers pay a monthly fee for unlimited flights. --- Follow the Palo Alto Weekly/Palo Alto Online on Twitter @PaloAltoWeekly and Facebook for breaking news, local events, photos, videos and more.

4 Things Vets and Service Members Need to Know When Buying a Home

Oct 1, 2017 Updated 6 hrs ago 0 4 Things Vets and Service Members Need to Know When Buying a Home Specialized loan officers can help military customers make the most of earned benefits. (StatePoint) If you’re a veteran, reservist or active duty service member, it’s important to know that there are special benefits you may be eligible for when buying a home. “Veterans and service members have earned the opportunity to become homeowners, and it’s crucial that they are well-informed about the benefits and options available to them,” says Greg Murray, military mortgage program manager at Wells Fargo, who is also a U.S. Navy veteran. To help, Murray has identified the top four things to know when buying a home. • There are special financial education resources designed for military personnel and veterans. Take advantage of these free online resources so you can be a savvier home shopper. For example, Wells Fargo’s Hands on Banking for Military, which offers courses on topics like banking basics and smart spending, also contains a comprehensive guide on home-buying. • Before assuming you won’t qualify for a loan, talk to a lender. Be sure to tell the lender that you have served or are currently serving in the military. They can inform you about the options available to you, such as a Veteran’s Administration (VA) loan. A VA loan is a home loan guaranteed by the federal government, designed to help those who’ve served in the military obtain homeownership. They can sometimes be obtained with zero down payment. Gifts or grants can be used to help cover down payment and closing costs, subject to program requirements, and no mortgage insurance is required. • A large portion of qualified buyers aren’t taking advantage of the low-to-no-down-payment mortgage options available through VA loans. Indeed, more than 21 million veterans and service members live in the U.S., however, over the past five years, a mere 6 percent of them bought a home using a VA home loan, according to the Department of Veterans Affairs. This may be due to the common myth that active duty service members, National Guard members and reservists are not eligible for VA loans (in fact, they may be eligible). Many also are unaware that unmarried, surviving spouses of veterans who died as a result of service or service-related causes are also eligible. • Individual banks, not the Department of Veterans Affairs, offer VA loans, allowing you to work with a lender who understands your needs and makes you feel comfortable. “A specialized team member who understands unique military needs, such as a Wells Fargo Military Lending Specialist, can help you make the most of the home loan benefits you’ve earned,” says Murray. Developing a relationship with this lender is also a good idea, as you may later choose to refinance through the VA Interest Rate Reduction Refinance Loan (IRRRL) program. To learn more, visit wellsfargo.com/military. If homeownership seems daunting, remember that taking advantage of VA benefits can make it more financially and logistically viable.

Owners, Appraisers Disagree on Home Values

Owners, Appraisers Disagree on Home Values DAILY REAL ESTATE NEWS | THURSDAY, JUNE 15, 2017 Homeowners feel like their homes are worth more than what appraisers say they are, and the gap between the two estimated values has grown for the sixth consecutive month, according to Quicken Loans’ National Home Price Perception Index. Read more: Owners, Appraisers Aren't Seeing Eye-to-Eye Appraised values were, on average, 1.93 percent lower than what homeowners expected, according to the index. Appraisals are drifting farther from owner estimates, even though their assessments continue to rise higher each month, the index shows. “It’s important for consumers to see the HPPI and not only think about the difference in perceptions, but the different perceptions across the country,” says Bill Banfield, Quicken Loans executive vice president of capital markets. “Home values, and home value changes, vary widely depending on the city you’re in. Homeowners, and those looking to buy a home, should keep a close eye on their local market to better understand home values in their area.” For example, in Denver and Dallas appraisals are nearly 3 percent higher than what homeowners expect. On the other hand, in Philadelphia and Baltimore appraised values are more than 3 percent lower than what owners estimate. Source: Quicken Loans

1031 Exchanges Under Threat?

1031 Exchanges Under Threat? DAILY REAL ESTATE NEWS | THURSDAY, JUNE 15, 2017 A major tax advantage for the commercial real estate industry may be one of the casualties in a sweeping federal tax reform expected this year, The Wall Street Journal reports. Read more: Lawmakers Need REALTORS® on Tax Reform We Could Lose 1031s. Here’s Why That Matters Some lawmakers are eyeing the 1031 exchange provision to get the tax-rate cut they seek. The provision allows sellers of real estate and other assets to defer capital gains taxes by reinvesting any profit in “like-kind” properties. The 1031 exchange applies to a range of assets, but real estate accounts for the largest portion of exchanges at 36 percent, according to Ernst & Young LLP data. The Joint Committee on Taxation estimated in 2014 that repealing like-kind exchanges could raise $40.6 billion in extra tax revenue over one decade. Several lawmakers consider the provision to be loophole that has limited economic benefit and, therefore, some are looking to put it on the chopping block in order to pay for lower tax rates. For example, Mark Mazur, the director of the Tax Policy Center, says 1031 exchanges “really have become just a way to defer tax liability.” However, real estate executives believe that any move to get rid of 1031 exchanges would be devastating to the economy and the industry. A recent report by Green Street Advisors says that like-kind exchanges are used in 10 percent to 20 percent of commercial real estate transactions. Any threat to 1031 exchanges “would cause a lot of transactions not to occur,” says Jeffrey DeBoer, chief executive of the Real Estate Roundtable. He adds that investors who purchase real estate through 1031 exchanges are more likely to invest in those properties than those who pay cash. “Therefore, you have capital you can now put into the newly acquired property.” The House Ways and Means Committee has yet to release a bill on the matter, although The Wall Street Journal reports that the chatter among lawmakers on such legislation is growing. Maintaining 1031 exchanges is a top priority for the National Association of REALTORS®. Earlier this year, NAR President William E. Brown said the association will meet any proposals to curb 1031 exchanges with strong resistance because the provision is a vital vehicle in driving commercial real estate development. “If that goes away, commercial real estate will be decimated,” Brown said earlier this year. “That’s something we’re being very clear about with Congress. This provision is to commercial real estate what [the mortgage interest deduction] is for residential real estate. We will fall on our sword for this.” Source: “1031 Exchanges, a Cherished Real Estate Tax Break, Faces Extinction,” The Wall Street Journal (June 14, 2017) [Log-in required.]

Transitioning Renters to Homeowners

June 16, 2017 Transitioning Renters to Homeowners Written by: Office of Housing Counseling Photo: Esperanza sits in the living room of her home. When a HUD-approved housing counselor at ACTS Housing first met Esperanza, she was on her hands and knees scraping old tile off the floor of her new home, debris flying everywhere. In that moment, her housing counselor knew she was a woman on a mission. Esperanza went to ACTS Housing, a HUD-approved housing agency, because she was tired of paying high rental costs. “Half of my check goes to the rent,” said Esperanza. “With three kids, I was ready. I’ve been saving so long and my kids deserve more.” The first step in Esperanza’s homeownership journey was a meeting with Maria Santos, Director of Homebuyer Counseling for ACTS Housing. Maria Santos, pulled Experanza’s credit report, walked her through various housing options, and supported her every step of the way. Maria explained, “Esperanza was a joy to work with. She was passionate and focused on homeownership from day one.” With Maria’s help, Esperanza purchased a property that had been in foreclosure on the South Side of Milwaukee, and renovated it into the home of her dreams. Having worked in the construction trade for five years, Esperanza had the perfect skillset to take on such a big project. She explained, “Once I got the house, the kids were excited because everyone has their own room now. And, I have more money in my pocket.” Esperanza, her three children, their dog and cat are now happy and cozy in their newly renovated South Side home. Maria explains that watching homeowners like Esperanza achieve their home buying dreams makes her job worthwhile. “The most rewarding part of my work is watching families overcome obstacles and move closer to homeownership,” said Maria. “I work with a lot of incredibly strong individuals who work hard to become homeowners. Once the keys are in hand, it makes all the hard work worth it.” ACTS Housing is thankful for Esperanza’s commitment to her family and her home. She has joined a cohort of more than 2,200 ACTS families since 1995 who have done the hard work necessary to become homeowners throughout Milwaukee. Read the latest issue of The Bridge from HUD’s Office of Housing Counseling or subscribe at TheBridge@hud.gov. TwitterFacebookLinkedInEmail

Menlo Park fire district may fund $350K for pedestrian signal

Safety measure outside a fire station would provide missing link for bike routes crossing Middlefield Road A pedestrian-activated traffic signal should be installed near Fire Station 1, the Menlo Park Fire Protection District board tentatively decided last week. At its June 20 meeting, the board agreed to fund up to $350,000 for a signal at 300 Middlefield Road, though it still needs to discuss the plan with city officials. The signal will be a HAWK (High-Intensity Activated crossWalK) beacon, similar to one approved last year outside Station 3 at Almendral Avenue near El Camino Real in Atherton. The new signal will remain dark until activated by a pedestrian, bicyclist or the fire district; its beam will extend 300 feet along Middlefield to allow cyclists to move from Santa Monica Avenue across Middlefield to Linfield Drive while vehicles are stopped. Jonathan Weiner, a member of the city’s Complete Streets Commission, and resident Jen Wolosin brought the idea to fire Chief Harold Schapelhouman. They asked the district to partner with the city to acquire the beacon, which would make it safer for people east of Middlefield to access Burgess Park, downtown, schools and other parks. Wolosin, who is spearheading a community school safety effort called Parents for Safe Routes, said the Menlo Park City School District told her 170 to 190 Hillview Middle School students would use the new route. Weiner said the current blinking crosswalk at Linfield presents “the illusion of safety.” The new signal, on the other hand, would amount to “multiple crosswalks … giving pedestrians a lot more room without feeling intimidated by cars that are just a few feet away.” David Lehman, a 40-year Menlo Park resident, said he received a concussion and a bruise to his brain after he was hit by a vehicle while riding his bike from Santa Monica to Linfield in July 2015. “I’ve crossed that intersection thousands of times (with) traffic often heavy and moving fast, and drivers seem distracted and in a hurry,” he said. “It’s absolutely not safe to assume cars will stop” at the crosswalk. At the meeting, Schapelhouman touted Weiner and Wolosin’s “common sense approach” to improving safety along a stretch outside the fire station where firefighters have had to use the Jaws of Life apparatus to extract people from cars and where at least one pedestrian has been killed. “We fight people trying to insert bicycle routes in places that they shouldn’t be,” he said. “I rarely deal with something that was so easy, so simple and so straightforward in approach.” The new signal would also benefit the fire station. Board President Peter Carpenter said the beacon would allow fire engines to leave the station without waiting for traffic or pedestrians “to get out of their way.” The board also directed the fire chief to look into the possibility of implementing HAWK beacons outside additional fire stations, where feasible. The board didn’t approve the funds June 20, but instead authorized Schapelhouman to meet with city officials to negotiate sharing the costs for the new signal. The project can’t proceed without the city agreeing to do an engineering design for it. A staff report accompanying the discussion only authorized paying half the expected cost, at $175,000. Carpenter suggested the district fund the total cost, with the stipulation that the city reimburse it with the other $175,000 later. “If we wait for them to put it in the budget, it will take another 16 months,” he said. “This will have to come back to the board to approve an actual amount.”

San Carlos Library Offering Free 'Check It Out!' Energy, Water Saving Toolkits

Library officials say the toolkits can help residents conserve water, use less electricity and save money by taking a few simple actions. By Renee Schiavone (Patch Staff) - April 26, 2017 2:38 pm ET San Carlos Library Offering Free 'Check It Out!' Energy, Water Saving Toolkits SAN MATEO, CA —Beginning April 25, county library users can borrow a “Check It Out!” Energy and Water Savings Toolkit from any community public library in San Mateo County. Outfitted with tools, supplies, measuring devices and a user-friendly guide, the toolkits can help residents conserve water, use less electricity and save money by taking a few simple actions. The toolkits contain both supplies that users can keep—including an LED lightbulb, weatherstripping, outlet gaskets and low-flow faucet aerators and showerhead—as well as a variety of tools to measure and correct electricity overuse, heat loss and water leaks. An illustrated user guide provides step-by-step instructions to save energy and water, without sacrificing comfort. “Libraries are places of learning and empowerment, so these toolkits are a perfect addition to our collection,” said Anne-Marie Despain, Library Services Director for San Mateo County Libraries, “we’re very proud and excited to partner with the San Mateo County Office of Sustainability to offer these tools for energy literacy and sustainability to our community.” Anyone with a valid library card in San Mateo County can check out a toolkit, just as they would a book or DVD. Over 70 toolkits are available countywide and can be checked out for three weeks. The toolkits are an initiative of the County of San Mateo Office of Sustainability, in partnership with San Mateo County Libraries, the Peninsula Library System, and the City/County Association of Governments. The toolkits were funded by California utility payers through their local utility company.

Dreaming of home: MidPen purchase of apartments allows family to plan for homeownership

April 12, 2017, 05:00 AM By Anna Schuessler Daily Journal Anna Schuessler/Daily Journal By living in their studio at Redwood City’s Atherton Court Apartments, Yesenia Nava and Eduardo Cervantes are able to save toward a home where they can live with their daughter. For Redwood City residents Eduardo Cervantes and Yesenia Nava, time is precious. Though the couple juggles their jobs, care for Nava’s 2-year-old, Tara, and visiting family members dotted across the Bay Area, they maintain a steady focus on moving out of their studio at the Atherton Court Apartments and settling in a home for their family. “We manage to try to save and maybe like even maybe get a house,” said Nava. “Because it’d be even cheaper than trying to rent. That’s our next plan right now.” With Foster City-based MidPen Housing’s purchase of the 55-unit apartment building on Rolison Road just north of Marsh Road in February, Nava and Cervantes can stay focused on their goal. Though plans to renovate the apartment complex in the next two years have yet to be finalized, the housing nonprofit’s $17.1 million purchase means Nava and Cervantes’ rent, which hovers just above $1,500 a month, will stay stable, allowing them to save and plan for the future in what many consider to be an unforgiving housing market. Nava and Cervantes experienced the effects of the market when rents shot up at the apartment they shared in Daly City a little over two years ago. Nava, 23, a supervisor at Panera Bread in Millbrae and Cervantes, 25, a construction worker in projects across the Bay Area, couldn’t afford the rent increase and decided to move into the Atherton Court Apartments to stay close to their jobs and family in South San Francisco and the East Bay. Two years later, the two believe the move has worked out well. Despite the traffic impeding their commutes, Nava is able to drop her daughter off with her sister’s mother-in-law before she heads to work and Cervantes said he is able to run errands at nearby stores. Nava said their rent has been manageable, but the two, who are engaged, have thought often about moving to an apartment where their family of three would have more space. But as they have put more thought into it, renting a bigger apartment makes less and less sense. “We’ve been looking but apartments right now are like ridiculously high,” she said. “We’re not really trying to pay for something [when] we might as well pay for something bigger.” The couple also realizes renting at another apartment would mean they would most likely have to move across the Bay, away from an area that allows them to just juggle their many commitments. “The commute is just like something I don’t want to do,” said Nava, who often sees a line of cars waiting to cross the Dumbarton Bridge from their studio. Though Nava and Cervantes don’t see many affordable options to begin a new lease on an apartment, they are well aware they are fortunate to have the rent on their studio stay stable as rents around them are increasing. Though saving toward a home is a large financial goal, they are motivated by the idea of owning their own place, and they know they have to save wherever they can to get there. “Just to move in, that’s a lot of money, you know,” said Nava. Rosemarie Caberto, the MidPen community manager for the Atherton Court Apartments, has seen a lift in spirits for the residents since the news that the below-market housing available there will stay in place. She said many residents told her they had stopped requesting from previous management that work be done at their apartments because they didn’t think anyone would respond. That changed since she started working at the Atherton Court Apartments three months ago. “I had two residents [who] had to cry because they’re very happy because we address their issues right away,” she said. Caberto is now in the midst of setting up 55 new below-market leases for those currently living in the units. At a meeting with residents this past month, she sensed a great deal of excitement around plans for future renovations. “They’re so happy, they’re so glad they’ll be having a community room [and] they’ll have their units renovated,” she said. In helping them sign new leases, Caberto has seen that most of the residents who live there are receiving some form of rental assistance and many are older and using Social Security benefits to pay their rent. She said preserving the below-market rates has allowed many of these residents to continue making the most of nearby service providers where they can receive health care or food assistance. Lisa Mendoza, MidPen’s regional property manager, said the nonprofit is in the process of financing renovations planned for the three buildings included in the Atherton Court Apartment complex. She said the organization is working toward rehabilitating each unit starting in the first quarter of 2018, and that MidPen would partner with a relocation agency to work out a plan for where residents would stay while their units are being renovated. Among the new features planned for the complex are carport parking to take parking off the street and a new structure housing a residential services office, community room, kitchen, computer lab and two laundry rooms. She said that some residents might see their rent drop by up to 50 percent in 2018 after the complex’s renovations are financed as well. Though Caberto will have her hands full in the coming weeks as new leases are signed, she is encouraged by the activity, and is already looking forward to seeing resident reactions to what’s next — renovating their units. “Hopefully that will happen soon so at least they’ll have a home that they can say is their home,” she said. anna@smdailyjournal.com (650) 344-5200 ext. 102 - See more at: http://www.smdailyjournal.com/articles/lnews/2017-04-12/dreaming-of-home-midpen-purchase-of-apartments-allows-family-to-plan-for-homeownership/1776425178672.html#sthash.vwxu5gor.dpuf

What to Look for in Homeowners Insurance

Few people can buy a house without homeowners insurance. Homeowners policies cover damage to houses and their contents from a variety of causes and protect owners if they're sued over accidents on their property. Even someone willing to go without that protection will still need a policy if they have a mortgage: Lenders insist on at least a minimal level of insurance to protect the house that serves as collateral for their loan. Function The most important thing to check is that the policy you're looking at will do what you need it to. Experts recommend having $300,000 in liability coverage, Investopedia states, and a replacement-value policy--which pays the cost of repairs or replacements up to the value of the policy--rather than cash value, which only covers the original cost, less depreciation. Some policies also cover living expenses if you have to rent a room elsewhere while your home is repaired. Limitations The standard HO-3 insurance policy usually covers your home's contents for up to 50 to 70 percent of the policy value, the Insurance Information Institute states: A $100,000 damage policy will cover $50,000 to $70,000 in contents. Some kinds of items such as jewelry, art, collectibles, fur and home office equipment won't be fully covered, however, unless you specifically ask for and pay for extra insurance. History If you take out a policy, you should have confidence that your insurer will pay when you have a legitimate claim. Different companies have different track records when it comes to settling claims promptly: Check with your state department of insurance to see which ones have a record of complaint against them. "Consumer Reports" magazine also publishes ratings for homeowners insurance companies and their performance. Size The fewer claims you make, the happier your company will be with you, the Nolo legal website states. Taking out the biggest deductible you can afford will reduce the number of small claims you make, and it should also lead to lower premiums. Potential Ask your insurer about discounts for basic home-safety precautions, CNN recommends: Smoke alarms, security alarms and deadbolts are among the steps you can take that many insurers will discount your premium for. If you buy life and auto insurance policies from the same company, you may be able to get a discount for that, too; it also gives the insurer an incentive not to cancel your policy if you make a claim.

The Advantages and Disadvantages of Acrylic Bathtubs

When choosing a bathtub, one of the choices a homeowner has to make is what material the tub will be constructed of. There are many options available, and price, durability and style should all be considered when choosing a tub. One of the choices is an acrylic tub. Like any type of tub, an acrylic tub has its advantages and disadvantages. Ad Sundance® Spas Hot Tubs Get The Free Sundance® Spas Brochure with Pics & Specs. Download Instantly Now! www.sundancespas.com Variety of Shapes and Sizes Because acrylic comes in sheets that are soft and malleable, acrylic bathtubs come in a large variety of shapes, sizes, and colors. Whether you are planning a small functional bathroom or a large spa-like setting, this wide assortment of tub styles can increase your options when designing a bathroom. Heat Retaining Properties Acrylic bathtubs have a smooth nonporous surface. The surface is warm to the touch in normal temperatures and has very good heat-retaining properties, keeping water warm for a longer time than some other bathtub materials. For a homeowner who enjoys soaking in a hot tub, this can be an important advantage. Scratches Easily An acrylic surface is quite soft and can scratch easily. For this reason, abrasive cleaners should not be used on acrylic tubs. While the fact that the surface scratches easily is a disadvantage, it can also be an advantage because the scratches can often be polished out or filled with acrylic. Other types of tub surfaces chip instead of scratch, making them more difficult to repair than acrylic. Not Rigid The surface of an acrylic bathtub is relatively soft and not very rigid. Acrylic tubs can be reinforced with fiberglass, which will increase durability and rigidity but will also increase the price of the tub. Budget acrylic tubs have little reinforcement and can feel quite flimsy when installed, so it may be worth paying the extra cost to purchase one of higher quality products with fiberglass reinforcement.

Wishing You a Very Happy Thanksgiving!

Sending warm wishes and heartfelt gratitude your way during this season of Thanksgiving. Thank you for thinking of me for your real estate needs and best wishes for a joyful holiday filled with friends, family and loved ones.

Thank you!