What Makes Denver Great!

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Counter tops can be a good seller upgrade

This article is by Roselind Hejl who is a Realtor with Coldwell Banker United in Austin, Texas. 

1:49 PM - Dec. 4, 2008 - comments {0} - post comment

Save on Your Credit Score this Holiday Season

With the economy slowing and holidays just around the corner, many consumers may be looking to credit cards to help them get through the heavy shopping season. While that may be a good short-term solution, you want to make sure you don't overlook the long-term impact on your credit rating. After all, the actions you take today could hang over your head for years to come--and may make it tough for you to get the home loan or car loan you want in the future.

To help you make sure you manage your credit cards--and your credit score--during the upcoming holiday spending season, follow these steps:

Double-check your card limits. Many credit card companies today have started lowering credit limits. That means you have less credit available, but it also may mean that your credit score is about to take a hit. That's because approximately 30% of your credit score is based on the amount you owe in relation to your available credit. So, if a credit card company cuts back your limit, you may find that you're suddenly almost maxed out. That's not a good sign for your long-term credit score rating.

Ask, pay down, or move around. If some of your credit limits have changed or are nearly maxed out, you can take a few steps to help alleviate the problem. First, consider simply asking for a higher limit to your card...not necessarily to use up with spending, but to allow more unused credit line to be available and therefore boost your credit score. You can also pay more money to the cards that are near the credit limit, if you can. Or, if you have cards with little to no remaining credit line, transfer some of the larger balances onto the cards with lower balances. That'll give you a more... well... balanced financial picture.

Leave home without it. One of the best tips for the holiday season is to: make a budget, identify specific items, and then leave home without your credit card. Instead, bring just enough cash to purchase the items on your list. That will help you resist the urge to impulse buy, and keep your credit card balances lower.

Pick a card... not just any card. If you can't bring cash, make a credit card plan. Identify specific items that you'll pay for on specific cards. By making a plan and spreading your purchases to different cards, you won't overspend and you won't risk running up one or two cards that are near the credit limit, which will hurt your credit rating.

Resist card offers at the counter. Retailers are famous for offering "savings" when you open a credit card. But those savings often don't outweigh the long- and short-term negatives. For one thing, opening a new account--or multiple accounts in a short period of time--can negatively impact your credit score. In addition, consumers often spend more than planned when a new card is suddenly available. So this holiday season, resist the temptation.

Stay active. If you have older cards that you don't use, make sure you keep them active. For one thing, some of those older cards help establish a longer history of positive credit. For another, the available credit on those older cards can help keep your credit score higher because it improves your overall debt-to-credit ratio. To keep those cards active, make sure you charge one or two items on them throughout the year... like, say, when you go shopping for the holidays. Then, pay them off when the bill comes in.

Always pay on time. Your payment record is a very large part of your credit score, so it's crucial that you have an idea how your holiday shopping will impact your credit card bills and that you make a plan to pay those bills on time. If you have trouble for any reason, contact your card companies right away to work out a plan that helps you pay down your debt... and save your credit rating from a huge hit.

6:26 PM - Dec. 3, 2008 - comments {0} - post comment

FHA loans explained

This article is by Jason Kotar, president of Kotar & Associates. Contact him at (954) 734-3504 or e-mail jason@kotarassociates.com.

With the Federal governments re-emphasis on the FHA as a key vehicle for resuscitating the real estate market, now is a good time to review FHA in more detail.

Let’s start with some basics. First, the FHA insures loans that approved lenders make, it does not purchase them as Fannie and Freddie do. If a FHA insured home goes into bankruptcy, FHA pays off the mortgage to the Lender, takes ownership of the home, and then proceeds to sell it (a HUD home.)

To mitigate its risk and provide income to offset foreclosures and defray their expenses, FHA charges the borrower insurance premiums, both an up-front and a monthly premium. The up-front premium can be included in the mortgage amount.

FHA loans are available for purchasing or refinancing a 1 to 4 unit, owner occupied home. There a number of FHA programs that cover the gamut of real estate offerings, from your “vanilla” FHA loan to Condos to REO’s to Reverse Mortgages to Rehab to Veteran loans and more. In subsequent articles we will be reviewing these programs in more detail.

Over the last number of months, FHA began implementing some changes to their programs. In addition, the Housing and Economic Recovery Act placed additional changes in FHA practices, some of which modified FHA proposed changes. I have listed some of those changes below.

Converting Existing Homes to Rentals

The FHA changed their underwriting rules to limit the ability of a homeowner to use rental income from a previous residence that it converted to a rental property, when applying for a new mortgage on a second property. Under the new rule, the homeowner must prove sufficient income to make both mortgage payments without the rental income or has an equity position in the rental property that it will not likely result in defaulting on that mortgage. There can be an exception to this rule for employment relocations.

This change mirrors the announcement by Fannie in August. Apparently, homeowners, in increasing numbers, are choosing to vacate their existing principal residence and purchase a new residence. They are then providing misleading information on the rental income of the property being vacated to justify the new mortgage. These changes effectively end “bail and buy” loans.

Moratorium on Risk Based Premiums

The Housing and Economic Recovery Act provided for a one-year moratorium on the implementation of the FHA’s risk based premiums beginning October 1, 2008. The effect of the risk based premium was to increase the premium based on the amount of the down payment.

This will not delay the implementation of an upfront premium as well as well as monthly premiums on all loans.

Seller concessions of 6% are still allowed; however, down payment assistance programs have been eliminated effective October 1, 2008.

Down Payment Requirements

The Housing and Economic Recovery Act also called for an increase in down payment required to 3.5%. That change will not go into effect until January 1, 2009.

As with any loan program, there are a number of stipulations that need to be met to gain approval. That is why it is important to choose the right FHA approved lender. Not all FHA approved lenders service all FHA loan programs.

1:44 PM - Dec. 2, 2008 - comments {0} - post comment

Details of the Rescue Bill

Large and small companies across the globe rely on access to money markets to finance their daily operations, including inventories, and payrolls. Lenders routinely make loans to these companies, and to each other, to make it all happen. When lenders have confidence in these markets, and investors have confidence in this system, we have a functional marketplace that, for the most part, is sustained by competition. When confidence in this system is shattered, however, like it has been recently, credit becomes expensive and scarce to all parties, and small and large companies alike can choke to death waiting for the short-term capital it needs to fund its long-term success. This directly affects you and your family. It means a slower economy. It means more lay-offs and less new job creation, which often means lo wer home values. It also fuels volatility in the financial markets that, as we've seen, can wreak havoc on your savings, retirement, and other investment accounts.

It is estimated that some $70 trillion in total global investment capital is available, which would be great news if our financial systems were functioning with confidence – and that's what the Rescue Bill is basically about. Like it or not, the US Government has been given unprecedented power to invest $700 billion in our financial systems in two main ways. First, as much as $250 billion to purchase stock in US banks, providing the banks with badly needed money. Second, through the purchase of certain assets to help stimulate more liquidity in the credit market. Another initiative will provide government guarantees for the short-term loans banks make to each other to run their daily operations. More importantly, these actions are in concert with similar practices by other governments and central banks.

None of these actions will solve our problems completely or save us from recession, but here's the good news. It is a positive step in the direction of stabilizing the markets. The other good news is that several other measures were tacked on to the bill to help build your confidence in the markets.

As part of the Rescue Bill, Congress also increased FDIC deposit insurance from $100,000 to $250,000 for all of an individual's accounts at a single institution. For one year, joint accounts, retirement accounts, and trust accounts are insured separately. This means a married couple can insure up to $1 million at a single bank, by making a few simple adjustments. Changes also affect revocable trusts, allowing the same amount of insurance for beneficiaries, such as your children. That means, a married couple with three kids could create enough qualifying individual and joint accounts to protect up to $1.5 million. It's important to note that the FDIC has never failed to pay a single dime of insured money when banks have failed, so you won't have to make a run on the bank or hide your money in your mattress anymore. Sm all businesses will also benefit from new increases, as well as the confidence that comes with this kind of insurance.

Within the 451 page Rescue Bill are nearly 100 tax code changes that directly affect individuals and business owners, including education deductions, sales tax, energy credits, and even new disaster aid. Other tax breaks, which were due to expire, were extended, including property tax deductions, the Mortgage Debt Forgiveness Act, and the shield for the Alternative Minimum Tax (AMT). The property tax provision, set to expire in 2008, has been extended to 2009, and allows up to $500 ($1000 for joint filers) in deductions in addition to the standard property tax deduction – even if you don't itemize! The Mortgage Debt Forgiveness Act, extended to 2012, was designed to protect those who already lost their homes due to foreclosures from facing an additional tax penalty for qualifying cancelled or "forgiven& quot; debt of up to $2 million. And, finally, the Rescue Bill also saves about 23 million Americans from the dreaded AMT, a kind of extra tax that some people have to pay on top of their regular income tax created by the Tax Reform Act of 1969.

These are just a few of the potential tax benefits created or extended by the Rescue Bill. As always, there are specific qualifying standards, and so it is essential to speak with a qualified tax professional about these and other tax benefits that could help you lower your tax bill and increase your confidence in today's tumultuous financial markets.

5:57 PM - Nov. 30, 2008 - comments {0} - post comment

Put your money into energy savings

This article is by Steve Luxton who is operations manager forHome Tune-uP in Fort Washington, PA

Despite the mercurial nature of energy costs, there never has been a better time to invest in energy saving measures in the home than now. Historically, anything that is applied or installed in a home in an effort to save energy or conversely, eliminate energy waste, has always had a return on the investment.

Most new home owners, as studies have shown, are far more likely in the first two or three years of their occupancy to undergo the hassle, inconvenience and cost to fix up their home than at any other time during the years of their residence. However, as any experienced real estate agent will tell you, those improvements are usually new kitchens, bathrooms, or to a lesser extent, additions.

These enhancements generally follow the rationale that they will increase the value of the home in addition to allowing the new owners to put their personal taste in the home. Quite often these upgrades and improvements would increase the value of the home, at least in terms of making it more attractive to prospective buyers, particularly in a buyers’ market.

Whether the volatility of energy costs stabilizes or not, most consumers are finally beginning to realize that the honeymoon, so to speak, is over. With prices at the gas pump reaching all time record highs, there is a strong market shift toward fuel efficient vehicles. And this change can happen quickly. In most cases, trading in the gas guzzling car or truck for a better mile per gallon can happen practically in a day or two. But what happens when the now more efficient vehicle pulls in the driveway of the home that may remind the owner that there most likely is room for improvement, if you’ll excuse the pun.

As an energy auditor, I strongly advise my clients to invest in the infra-structure of the home first and foremost. That includes areas and systems that generally fall into the structural and mechanical areas, including maintenance items. The sound home is then ready for the more appealing upgrades. Part of the essential infra-structure areas is energy efficiency. Is the insulation adequate? The heating system was deemed mechanically okay but is it like a V-8 engine compared to a more efficient smart system?

Considering these items will not only make the home more comfortable but will also lower the second largest cost of being a home owner - energy costs. A huge incentive in putting money and time into energy efficiency is the return - there is no risk when the house is being sold; will the new deck make the home sell faster and recoup the costs?

The remodeled kitchen might return its investment, depending on market conditions. Energy upgrades begin the return on investment the moment the energy bill arrives. If the energy costs are twenty five percent lower, the investment is paying dividends already. Given the rather gloomy outlook for energy costs, that home that can claim it is more energy efficient will probably start looking more attractive that the home with granite countertops (if only granite could save energy!).

We live in the most dynamic, resourceful nation in the world. With some re-focusing on now more important issues, we can deal with skyrocketing energy costs by prioritizing where we invest and spend our hard-earned dollars. Saving energy is of paramount concern. We have plenty of solutions and opportunity practically at our fingertips. We simply need to understand that most homes can be made more energy efficient for a fraction of the cost than it costs to add amenities or an expensive remodeling job.

Energy costs are beyond our control but how we use this increasingly precious commodity is well within our grasp.

5:52 PM - Nov. 28, 2008 - comments {1} - post comment

Fighting Medicare claim denials

When an insurance company denies a claim in whole or in part, it is possible to appeal their decision. The same is true with Medicare claims...and in fact more than half of Medicare appeals are successful. If you, a family member, or a friend have had a Medicare claim denied, the following information can help you successfully appeal the decision:

Time Frame: If your Medicare claim is denied for less than the full amount, you can ask for a "redetermination" but you must do so within 120 days. Download the Medicare Redetermination Request form at http://www.cms.hhs.gov/cmsforms/downloads/cms20027.pdf, or call 800-633-4227 to receive a copy.

Common Denials: The denial you received will include an explanation, which you will need to contest in your appeal. Ask your doctor to write a letter addressing the reasons in the denial and include this letter with your appeals form. Common denials include:

1. The treatment, prescription, or medical service is unlikely to cause your health condition to improve: Fight this by having your doctor write a letter explaining why the care is necessary. Medicare is required to look at your total condition, not just your chance for a full or partial recovery.
2. You are likely to require care for a very long time: Medicare coverage is not limited to treatments that work quickly, so ask your doctor to write a letter explaining that the treatment is making some positive difference or is expected to.
3. The prescription dosage level is greater than what is normally prescribed, or the drug prescribed is not normally prescribed for your health problem: Have your doctor write a letter explaining why the unusual drug or dosage is medically necessary. For instance, you may be allergic to the medicine normally prescribed.
4. You do not qualify for Medicare-covered home care because you are not homebound: Under Medicare rules, homebound does not mean that you are completely unable to leave your home or that you are confined to a bed. It does mean that you require assistance and that it takes considerable effort for you to leave your home. Ask your doctor to write a letter describing in detail how difficult it is for you to leave your home.

Be Persistent: If your first appeal is denied, you can file as many as four more appeals. And the more appeals you file, the greater your odds of success. While your first appeal is made to the same group that denied your initial claim, subsequent appeals are made to independent arbiters.

For more information, visit www.medicareadvocacy.org.

5:34 PM - Nov. 26, 2008 - comments {0} - post comment

You can help sell your own home

This article is by  Roselind Hejl who is a Realtor with Coldwell Banker United in Austin, Texas

5:48 PM - Nov. 24, 2008 - comments {0} - post comment

Medical Identity Theft

With identity theft on the rise these days, most of us are already taking steps to protect ourselves. But did you know that there’s now a growing form of identity theft known as “medical identity theft” that can not only devastate victims’ finances, but also compromise their health, too. According to Joy Pritts, JD, author of Your Medical Record Rights, here’s what you need to know.

What is Medical Identity Theft?

Medical identity theft occurs when criminals access victims’ medical records. Since medical records contain a person’s social security number and credit card information (if bills have been paid via credit card), criminals can open accounts and make fraudulent charges. However, criminals also gain access to victims’ health insurance policy information and medical histories, and they can create forged health insurance cards to sell to people who are uninsured and need expensive medical treatment. A person who buys a fake health insurance ID card would then seek treatment using the victim’s name and policy number, and then disappear, leaving the victim with the bills to pay.

Why Should You Be Concerned?

Victims of medical identity theft not only have to repair their credit and convince credit agencies and service providers that bills are fraudulent, they also have to correct inaccurate medical information that becomes part of their health records. Victims could be denied life insurance or individual health insurance if their record shows treatments that they did not have. In addition, victims could receive treatments or medicines that could be harmful to them on the basis of inaccurate content in their medical records.

Steps to Take if You Suspect a Medical Identity Theft

1. Read all bills and “Explanation of Benefits” statements from your insurance company to verify they are for treatment you received.
2. If a bill or statement refers to treatment you did not receive, contact the employee in charge of investigating fraud at your insurance company and at the medical facility involved and explain the situation. Follow up with a letter sent via registered mail with return receipt once again explaining the situation, asking for any bills to be voided, and asking that your medical record be amended to state that you did not have this health problem or receive this treatment.
3. Report the identity theft to the police department and state’s attorney general’s office.
4. Contact the health care providers you use, explain the situation, ask if the erroneous information has been added to the providers’ records, and if so, ask them to correct the records.
5. Report the fraud to the major credit bureaus and set up fraud alerts. Also, request free copies of your credit reports to make sure no new fraudulent accounts have been opened.
6. Review your medical records every few years to make sure there are no errors.

To learn more about your medical record rights, visit http://ihcrp.georgetown.edu/privacy/records.html.

5:43 PM - Nov. 22, 2008 - comments {1} - post comment

Thanksgiving is almost here

Thanksgiving is almost upon us! This popular autumn holiday traces its roots back to early colonists landing in the new world. It took nearly 300 years, however, for Thanksgiving to officially become a national holiday in the United States.

Despite the popular belief that Thanksgiving originated with the colony at Plymouth Plantation in 1621, researchers have actually pinpointed the first Thanksgiving 56 years earlier. According to scholars, the first known Thanksgiving took place during September 1565, in Saint Augustine, Florida when Spanish settlers held a Mass of Thanksgiving after arriving safely in the new world. English settlers in the Virginia Colony held a similar day of thanks in 1619. Two years later, the colonists at Plymouth Plantation celebrated the famed Thanksgiving of 1621.

The celebration continued when the colonies became the United States of America. In 1789, George Washington proclaimed the first national Thanksgiving Day in the U.S. The tradition of thanks was carried on sporadically by President John Adams in 1798 and 1799, as well as President James Madison in 1814 and 1815. In 1863, President Abraham Lincoln finally proclaimed the last Thursday of November as a national day of thanksgiving. Years later, President Franklin Roosevelt stated that Thanksgiving should always be celebrated on the fourth Thursday of the month–as opposed to the occasional fifth Thursday.

Eel and Seal...Mmmmm! My favorite!

What exactly did the colonists eat at the early Thanksgiving celebrations? According to food historian Kathleen Curtin, the answer may surprise you. In addition to wild turkey, other popular sources of meat that were likely served include eel, clams, lobster, wild goose, eagles, venison, and seal...yes, seal. Peas, beans, and carrots were probably on the table, but sweet potatoes and corn on the cob weren't. And although pumpkins were likely consumed, pumpkin pie wasn't on the menu because no recipe existed for it at that time.

Talking Turkey...271 Million Turkeys!

Today, turkeys are a popular choice for Thanksgiving and holiday feasts. This popularity has turned turkey farming into a big business. In fact, the USDA National Agricultural Statistics Service estimates that 271 million turkeys will be raised in the U.S. this year alone.

Weighing In on What We Eat

Ever wonder how many cranberries, pumpkins, and other Thanksgiving Day foods we go through each year? The U.S. Census Bureau has the skinny! According to their research, the U.S. will produce some serious poundage this year alone when it comes to these holiday favorites, including:

• 689 million pounds of cranberries
• 1.8 billion pounds of sweet potatoes
• 1.1 billion pounds of pumpkins
• 2.1 billion bushels of wheat
• 769,760 tons of snap green beans

No wonder we feel so full after those holiday meals!

Can Turkey Really Make You Tired?

Here's how the story goes. Turkey contains tryptophan...which helps the body produce niacin...which then helps produce serotonin. And serotonin is the key to this theory because it calms the brain and induces sleep.

The problem with that theory is that tryptophan actually works best on an empty stomach–which most of us don't have after our Thanksgiving feast! So, it's more likely that the heaviness and the high carbohydrate content of the entire Thanksgiving meal are responsible for that sense of lethargy you feel, as your body works to digest it all. Add a glass of wine or other alcohol to your meal, and you'll increase that feeling of sleepiness even more.

Then again, we all work hard throughout the year, so maybe that tired sensation is just your body requesting a well-deserved nap.

3:34 PM - Nov. 21, 2008 - comments {0} - post comment

Smell right and sale quick

This article is by Chris Kaucnik, marketing director forHome Warranty of America.

Humans can discern about 10,000 smells. Remember Cleopatra? She placed layers of rose petals on her palace floors to entice Mark Antony. She knew the power of scent and got that part right, but according to recent studies, the scents that most attract men are pumpkin pie and anise. Well, she didn’t have our science or pumpkin pie.

Retailers have been enticing prospects to buy their goods with thousands of scents for thousands of years. Scent has a power of its own.

We instinctively know that the power of scent can be good or bad. Strong smells from pets, cooking or other activities can make prospects run from buying a home. But the right, clean scent can have quite the opposite affect.

Scent Suggestions

Let’s say you are selling updated, contemporary condos and lofts in a hip urban neighborhood where younger singles and newlyweds are buying. You may decide you don’t want these prospects to be highly relaxed, but rather attentive and excited instead. This will help them make decisions more quickly. In this case, use scents of rosemary, peppermint or grapefruit for alertness and stimulation.

If you want to enhance the mood of an older home with many rooms that may invoke a bit of uneasiness or confusion, use any citrus scent. Citrus is refreshing and energizing, eases tension and promotes mental clarity. Or use lavender to promote calming.

Some scents and their reactions:

-Chamomile: calming and soothing-eases anger and anxiety
-Clary Sage: relaxing, euphoric-eases anxiety, tension and stress
-Eucalyptus: fresh, cooling and invigorating-promotes alertness
-Jasmine: alleviates anxiety and depression
-Lavender: calming
-Lemon: refreshing and energizing-eases tension, heightens mental clarity
-Mandarin: relaxing and calming-relieves insomnia
-Neroli/Orange Blossom: relieves stress, anxiety and insomnia
-Peppermint: refreshing and stimulating-increases alertness
-Rosemary: a stimulant that promotes mental clarity and alertness
-Sandalwood: warm, sensual aroma-euphoric and seductive

5:39 PM - Nov. 20, 2008 - comments {0} - post comment

Taking care of energy efficient light bulbs

 We've all heard that using compact fluorescent light bulbs (CFLs) is one very simple thing we can do to have a big impact on the amount of energy we use. In fact, if every American home replaced just one incandescent light bulb with an ENERGY STAR qualified CFL, we would save enough energy to light more than 3 million homes for a year, more than $600 million in annual energy costs, and prevent greenhouse gases equivalent to the emissions of more than 800,000 cars.

Most CFLs contain some elemental mercury. It is a necessary component of energy efficient light bulbs, allowing them to use up to 75% less energy and last up to 10 times longer than regular bulbs. The amount of mercury used depends on a few factors, but the average is between 3.5 and 15 milligrams. Compare that to older fever thermometers, which contain about 500 milligrams, and you see it's a relatively small amount.

No mercury is released as long as the bulbs remain intact – exposure is only possible when one has been broken. Still, there are definite precautions you should exercise when using CFLs, particularly with their disposal.

Disposing of Burned-Out Bulbs
Simply throwing your old bulbs in the garbage will result in breakage and the release of mercury into the environment. Although most states do not have recycling requirements for CFLs, the EPA strongly encourages the recycling of all mercury-containing bulbs when they burn out, regardless of their mercury content  - almost all parts of compact fluorescent light bulbs can be recycled.

To locate a hazardous waste collection and recycling center in your area visit the EPA's bulb recycling page or Earth911.org. Your local electric company may also have recycling information on its website.

Cleaning Up Broken Bulbs
Now, what to do if one of your fluorescent bulbs breaks? Well, here's where you need to take a little extra care – for your safety and the environment's. In addition to the steps below, which are recommended by the EPA, it is recommended that you first put on a pair of rubber, latex or nitrile gloves.

Before Clean-up: Air Out the Room

1. Have people and pets leave the room, and don't let anyone walk through the breakage area.
2. Open a window and leave the room for at least 15 minutes.
3. Shut off the central forced-air heating/air conditioning system.

Clean-Up for Hard Surfaces

1. Carefully scoop up glass pieces and powder using stiff paper or cardboard and place them in a glass jar with metal lid or in a sealed plastic bag.
2. Use adhesive tape, such as duct tape, to pick up any remaining small glass fragments and powder.
3. Wipe the area clean with damp paper towels or disposable wet wipes. Place towels in the glass jar or plastic bag.
4. Do not use a vacuum or broom to clean up the broken bulb on hard surfaces.

Clean-up for Carpeting or a Rug

1. Carefully pick up glass fragments and place them in a glass jar with metal lid or in a sealed plastic bag.
2. Use adhesive tape, such as duct tape, to pick up any remaining small glass fragments and powder.
3. If vacuuming is needed after all visible materials are removed, vacuum the area where the bulb was broken.
4. Remove the vacuum bag (or empty and wipe the canister), and put the bag or vacuum debris in a sealed plastic bag.

Clean-up Steps for Clothing, Bedding and Other Soft Materials

1. If clothing or bedding materials come in direct contact with broken glass or mercury-containing powder from inside the bulb that may stick to the fabric, the clothing or bedding should be thrown away. Do not wash such clothing or bedding because mercury fragments in the clothing may contaminate the machine and/or pollute sewage.
2. You can, however, wash clothing or other materials that have been exposed to the mercury vapor from a broken CFL, such as the clothing you are wearing when you cleaned up the broken CFL, as long as that clothing has not come into direct contact with the materials from the broken bulb.
3. If shoes come into direct contact with broken glass or mercury-containing powder from the bulb, wipe them off with damp paper towels or disposable wet wipes. Place the towels or wipes in a glass jar or plastic bag for disposal.

Disposal of Clean-up Materials

1. Immediately place all clean-up materials outside in a trash container or protected area for the next normal trash pickup.
2. Wash your hands after disposing of the jars or plastic bags containing clean-up materials.
3. Check with your local or state government about disposal requirements in your specific area.

Future Cleaning of Carpeting or a Rug: Air Out the Room During and After Vacuuming

1. The next several times you vacuum, shut off the central forced-air heating/air conditioning system and open a window before vacuuming.
2. Keep the central heating/air conditioning system shut off and the window open for at least 15 minutes after vacuuming is completed.

Additionally, you may read about what never to do with a mercury spill on the EPA's website.

Health Effects of Mercury Exposure
Elemental mercury usually causes health effects when it is breathed in as a vapor and absorbed by the body through the lungs. Some symptoms of mercury poisoning can include tremors, mood swings, muscle weakness, and headaches. With higher exposure there may be serious effects, including death. To read more about the health effects of exposure to mercury, please click here. If you are worried about your exposure to mercury, please consult your doctor.

Something as easy as replacing your light bulbs can make a significant difference in the amount of greenhouse gases emitted by power plants, not to mention the savings you'll see on your electric bill. Just make sure you're taking the necessary steps to ensure your safety – and the environment's

4:10 PM - Nov. 18, 2008 - comments {1} - post comment

The Salt of life

 This article is by Kirk Leins who has been cooking his entire life. No stranger to professional kitchens, he currently devotes most of his time to cooking instruction, food writing, and producing television.

Salt – it is a simple word, yet a complicated subject, well kind of. Scientifically speaking, it is a very basic compound. Historically, however, we are talking about one of the world's oldest and richest resources, with applications ranging from food to textiles. So, do yourself a "flavor" and follow along as I apply a little reasoning to the world's greatest seasoning.

What is salt?
It doesn't seem prudent to begin our examination of salt without first addressing what it actually is. In terms of chemistry, salt is the combination of two elements, sodium and chloride. It is not only one of the most basic molecules on earth it is also one of the more abundant. Salt can be found in seawater, as well as in the form of evaporite minerals (rock salt), typically the result of enclosed waterbeds having evaporated.

The compound known as salt is absolutely crucial to life as we know it. Our bodies actually require it in order to regulate fluid levels. Salt also happens to be pretty important to the world's economy, as it has literally thousands of commercial applications. Paper, dyes and detergents all contain salt. Think about how many products and services utilize at least one of the three. It is also used to soften water, deliver trace minerals to livestock, keep our roads free of snow and ice, and preserve food.

Salt even has a deep meaning within many religions. In Catholicism, its use as a purifier dates back to the Old Testament. It is believed that the word "salvation" actually stems from this practice. In Judaism, salt was used historically as a temple offering on the Sabbath. To this day, salt water is part of a traditional Passover dinner, symbolizing the tears of Jewish slaves. In eastern religions such as Buddhism and Shintoism, salt is thought to drive away evil spirits.

If you haven't already figured it out, salt is such a large subject that a complete examination would require a doctoral thesis. My goal, rather, is to impress upon you one idea - salt is hugely important to the body, mind and soul.

3 types of salt
Before we go any further, I think it's important to talk about some of the more popular types of salt for cooking, as well as their more common uses.

Iodized Salt (table salt)
This is the stuff that's found in most saltshakers. It is made by filling salt deposits with water and allowing it to evaporate. The crystals left behind are then refined and iodized. If you're asking why the iodine, it was an attempt on behalf of the Morton Salt Company in 1924 to reduce the number of goiters in Americans. Strangely enough, it worked!

Personally, the only time I ever utilize table salt is if I'm at a restaurant and my food comes to me under-seasoned. I hardly use it at home as I don't cook with it, and rarely do I bake with it. It's considered to be very salty in flavor and due to its superfine texture it is difficult to determine how much you're actually using without measuring it first.

Kosher Salt
Aside from iodine not being added, Kosher salt differs from table salt because it is raked when harvested. This process yields larger and more square-shaped grains. While the salt itself is Kosher, its name actually reflects its use in the process of Koshering meat. That being said, Kosher salt happens to be an awesome everyday salt. Aside from being inexpensive, it is less salty than its iodized cousin and the larger grains allow for easy handling. It can be used for cooking and as a tableside condiment.

Sea Salt
Available in both fine and coarse grains, as well as flakes, sea salt is obtained by evaporating seawater. Since there are many seas, it shouldn't be hard to imagine that there are many types of sea salt, ranging from cheap to costly. The inexpensive stuff can be used just like Kosher salt. The more expensive sea salts should either be used for smaller applications, or as a finishing touch to a special meal. Sea salt has become a diverse business, as many are now being infused with wonderful flavors, such as truffles and various herbs.

4:04 PM - Nov. 16, 2008 - comments {0} - post comment

Treat your teeth this holiday season

 The holidays are approaching quickly. And that means you'll soon find yourself in a season of sugar and sweets that extends from Halloween night to New Year's Day. While many people are conscious of the toll that holiday food can take on their weight–and their waistlines–many people forget that the holiday season can be just as hard on their teeth.

The reason for the extra wear on your teeth is actually pretty simple. Your teeth and gums are covered with a sticky film called plaque. Most of us have heard of plaque, but we may not know how it leads to tooth decay and cavities. Essentially, when the plaque on your teeth comes in contact with sugar or starch, it begins to produce acid... and that acid eats away at your tooth enamel. With that in mind, it's easy to see how the constant snacking and sugary treats of the holiday season can wreak havoc on your teeth.

To help make sure your teeth stay healthy this holiday season, follow these tips from the American Dental Association (ADA).

Avoid sticky situations. Sticky treats–such as gummy candies, hard candies, and even the sweets in fruit cakes–don't wash off your teeth as easily as other sweets, like chocolate. As a result, the stickier treats sit on your teeth longer, slowly eating away at your teeth minute by minute.

Eat dessert with your meal. While you're chewing your meal, your mouth produces additional saliva. That saliva not only helps break down the food for your stomach, but it also helps neutralize the acid produced by plaque and it helps rinse those sweets off your teeth.

Don't snack between meals. Sugar causes your mouth to produce acid. But so does starch. That means, in addition to candy and cookies, you can add things like bread, crackers, and even cereal to the list of snacks that can harm your teeth. Now add to that the fact that your mouth continues to produce acid up to 20 minutes after you eat. That means, if you snack between meals, your mouth may be producing acid nearly all day long. So, if you can, cut down on the between-meal snacks. If you're hungry and absolutely need something to eat, choose a healthy alternative like vegetables, fruit, cheese, and even yogurt to help minimize the acid production.

Chew gum. Chewing gum is a lot like chewing food... your mouth can't help but produce a lot of additional saliva. And as you know from the tips above, saliva helps combat acid and helps rinse your teeth. So, after a meal or a snack, toss a piece of sugar-free gum in your mouth and help fight tooth decay with each chomp.

Drink plenty of water. Like saliva, water helps rinse your teeth clean. Better still, water that's fortified with fluoride helps give your teeth an extra little boost of healthy goodness. So make sure you drink plenty of water during the holiday season. And, if you purchase bottled water, check the label to see if the contents include a dose of fluoride.

Brush-a-brush. Remember to brush your teeth at least twice a day and floss at least once a day. For an animated look at how to best brush and floss your teeth, watch the ADA's animated tips for brushing and flossing.

Finally, remember to visit your dentist regularly and make sure to mention any issues or concerns you have. By following these simple tips, you can help ensure that your teeth stay healthy while you enjoy the holiday season.

3:59 PM - Nov. 14, 2008 - comments {0} - post comment

Protect your finances in perilous times

This article is by The American Homeowners Foundation (AHF)which  is an independent nonprofit consumer organization serving the nation’s 75 million homeowners since 1984.

With the nation possibly facing the most worst financial crisis since the Great Depression, and as many as 6 million homeowners at risk of foreclosure, we all need to review our finances and make sure we are well positioned for the future. Home values, the stock market, and the economy will eventually recover, so the main goal is to make sure we protect our finances as best as possible in the meantime.

The appropriate action is related to your liquidity. If you have enough cash and liquid assets to cover one year’s worth of living expenses, you’re in pretty good shape for the near term. Liquid assets include things that are often overlooked, such as IRAs, 401Ks, cash surrender or withdrawal value for life insurance and/or annuity funds that are immediately accessible, so you may be in better shape than you think. There may be penalties associated with some of those withdrawals, so tap them only as a last resort.

While regularly reviewing your financial status is a good idea for everyone, there may be no need to modify a thoughtful and balanced long term financial plan if you have sufficient liquidity. Homeowners with minimal liquid reserves need to take action soon to strengthen their ability to access cash if they need it in increasingly uncertain times. Uncertain economic times can threaten even the safest jobs, and jobs take longer to find during a recession. For homeowners with less than a year’s liquid reserves, a top priority should be to protect their limited liquid assets, look for ways to expand liquid assets, and look for ways to improve your ability to get additional cash in the future if you need it.

Here are four important steps smart homeowners should take to protect their financial security:

1. Review your home financing structure and take action if necessary. If you have a 30 year fixed rate loan at current mortgage interest rates or less, no action may be necessary if your have enough cash and liquid assets to cover one year’s worth of living expenses. If not, refinancing your mortgage to reduce payments or prevent future payment increases may be a good idea if you have equity in your home.

If you have sufficient equity and your credit score is sufficient, you may be able to take out cash in the process, which is a particularly good idea if you have little savings and/or you can significantly lower your mortgage interest rate through refinancing. If liquidity is a challenge and you are eligible for a home equity line of credit, apply now so it will be in place in case of a crisis.

Things are trickier for homeowners with mortgages that are “underwater” (the mortgage balance exceeds the home’s current market value). Most lenders won’t forgive the difference unless you’re behind on payments and are out of money, and even then they are far more inclined to a restructuring that would temporarily reduce payments to an affordable amount while maintaining the mortgage balance.

A new “Hope for Homeowners” FHA program going into effect October 1, may enable some homeowners to get part of the mortgage debt forgiven and refinance with a 30-year fixed rate mortgage. Yet other alternatives may emerge out of the current Wall Street rescue effort over the next few months. In most cases a foreclosure should be avoided if possible.

In some cases it is unavoidable and in others may actually be in the homeowner’s best interest. Some financially-pressed homeowners whose mortgage balance far exceeds their home’s value have recognized that it will probably take many years for the home’s market value to catch up with their mortgage balance. In the meantime they are also trapped in their present home and unable to sell and take advantage of better job opportunities in other areas.

By the time home values do catch up, many could have restored the damage done to their credit rating by a foreclosure, and they would have advanced in their career as well.

2. Review the allocation of your other investments. Experts recommend diversification in good times and bad. If you do not have enough liquid assets to cover at least one year’s worth of living expenses, rebalance your investments to minimize the risk of further erosion of their value. Sell individual stocks and mutual funds and buy conservative investments like AAA bonds and federally insured savings accounts and federal, state and local bonds. They will hold their values in declining stock markets. While conservative investments will also trail other investments in appreciation when the market recovers, it’s better for homeowners with liquidity to be safe and miss out on some opportunity for investment growth until the market recovers.

Conversely homeowners who are in good shape financially probably needn’t restructure a well balanced investment portfolio. When recovery begins, appreciation of securities will outstrip growth of more conservative investments. Timing such market changes is notoriously difficult, and homeowners with balanced investment portfolios are usually better advised to stay in the market and benefit from all of that recovery.

3. Make sure your investments, insurance policies, IRAs, and/or annuities are adequately insured. Bank deposits are covered by the Federal Deposit Insurance Corporation (FDIC), which guarantees bank account balances of up to $100,000 in a single bank ($200,000 for joint accounts). If you have accounts in more than one bank, each account is covered by those limits. FDIC protects IRAs kept in bank accounts up to $250,000. Make sure that any other investments through stockbrokers or other financial service firms are insured by the Securities Investor Protection Corporation (SIPC). SIPC protects the assets in your investment account from losses due to a financial services firm’s bankruptcy, but it does not protect you from losses due to stock market declines. SIPC covers up $500,000 per customer, including up to $100,000 for money market funds.

With the failure of giant insurer AIG, many homeowners are concerned about the status of their life insurance and/or annuities. Life insurance policies are insured by each state’s guaranty association. Typical coverage is $100,000 in cash surrender or withdrawal value for life insurance and $100,000 in withdrawal and cash values for annuities.

4. If you need to improve your liquidity reduce unnecessary personal expenses, and stop making any extra payments on your mortgage. To build your savings, cut back on expensive vacations and non-essential activities like hobbies and expensive restaurants. Look for other ways to save money as well (never a bad idea even if your finances are strong).

3:29 PM - Nov. 12, 2008 - comments {0} - post comment

Decorate warmly for the season

When the weather begins to turn cold, take cues from fall to warm up your world. Think about the decorating styles that appeal to you and use the following tips for guidance:

- Look to Elemental Colors: Air, earth, fire and water; nature inspires the most beautiful colors. Colors reflecting air will make your home breathe. earth inspired colors will ground and calm a room. Colors pulling from water inspire playful fun and lastly those reflecting fire will say bold confidence.

- Take Natures Cues: As the air turns cool, nature gives us clues as to which colors make your home feel warm and cozy in the fall. Look around at the fall foliage and you’ll see vibrant golds, rich reds, deep chocolate browns and toasty oranges. These colors inspire life and energy as the days get darker and cooler. Look for ways to incorporate these colors and sceneries into your room décor.

- Go Natural: With the increasing focus on the environment, there are abundant products available today that reflect and are good for nature. These products often incorporate earthy colors and textures; a perfect theme for fall. Choose eco-friendly shades which are PVC-free and 100% recyclable. Check out the eco-friendly wallpaper made from recycled material or sourced from managed forests.

- ‘Tis the Season: Carve out a tall pumpkin and use it as a flower vase or use small pumpkins for candles. A throw pillow, bowl of fresh citrus fruit or a bouquet of cut flowers are inexpensive ways to provide some color pop while welcoming your guests with the feel of nature.

- Come Together: Gather around the fireplace. Rearrange your furniture to set your fireplace, instead of the TV, as the focal point of the room. Footstools, ottomans, and floor pillows by the fire create an inviting, warm atmosphere that will get you through the harshest days of winter. And if you don’t want the hassle of starting and maintaining a fire, try placing tall white candles in the fireplace for a similar glow.

- Go Vibrant: Add a few splashes of vibrant color. They enrich any look and keep you from feeling drab. Deep colors also inspire confidence. Use an area rug to add warmth and personality to any room.

- Go Circular: Designing a wreath is one of the easiest DIY projects you could hope for. And this time of year there is an abundance of colorful items to choose from at your local craft store or around your home. Get the kids involved and make it a family project.

- Prepare for Winter: Now is the time to prep your home. There are several easy steps you can take. Consider insulating cellular shades or lined window treatments such as thermal curtains or foam-backed draperies for older, drafty windows. Insulate your water heater with insulation wrap. Seal leaks and drafts with caulk or weather strips. Clean your furnace and change your air filter. And lastly, but certainly not least, install a programmable thermostat. This allows you to conserve energy during the day while you’re at work and at night while you sleep, but still come home or wake up to a warm, cozy home.

This fall season homeowners can add color and style even on a budget.

6:07 PM - Nov. 10, 2008 - comments {0} - post comment

Things to do in Colorado

Discover Colorado and soak in the breath-taking colors as well as some local attractions. Get out there and explore this glorious state we call home.

Pikes Peak Country 
The Pikes Peak area has plenty to offer so here are some suggestions.
• Your first stop is the Cheyenne Mountain Zoo and the new Rocky Mountain Wild exhibit. Get to know Colorado’s wild heritage including mountain lions, moose, otters and more. This zoo is the only private mountain zoo in the U.S.; take the Sky Ride for an aerial view.
• Your next stop is to see Seven Falls, a waterfall cascading 181 feet in seven distinct steps. Evening viewing is even more beautiful with a full moon.
• If you are a history buff, visit the Ghost Town Museum. Learn about the gold fever that swept through the West and see authentic preserved artifacts; you can even pan for gold!
• Check out the Garden of the Gods, with over 300 sandstone rock formations you can either drive through or walk/hike. This park is a great picnic spot.
For more information on these attractions visit: www.pikes-peak.com/.

Denver
• Spend some time in the capital of Colorado. The Capital building has a lot of history and heritage that some of us might not be aware of. Colorado rose onyx (also known as Beulah red marble), a type of stone so rare that all known reserves were used in the capitol’s construction. Did you also know that in order to keep the gold luster in the capital’s dome they had to reapply gold from Italy in 1991? Take a day to soak in Colorado’s heritage. Tours are offered every 45 minutes. 
• Visit the ‘Unsinkable’ Molly Brown House. Molly Brown was one of the few survivors of the Titanic. This house, now museum, was the family home and in 1902 served as the Governor’s Mansion. Learn more about Molly Brown and all of her accomplishments. Tours available Tuesday through Sunday. 
• Learn something new everyday and stop by the Denver Museum of Nature and Science. Enjoy a variety of exhibits, programs and activities for the entire family. The museum also offers an IMAX™ movie theatre and the world’s most advanced digital planetarium.
For more information on your weekend trip in Denver visit: www.colorado.com, www.denver.org, www.dmns.org

Fort Collins
• Fort Collins is the second largest producer of beer in Colorado, and if you don’t believe it, see for yourself on the Foam on the Range Tour. Visit and taste brews from five different breweries in town including traditional ales and stouts to the unconventional, yet delicious pomegranate wheat.
• Visit the Swetsville Zoo and experience a unique exhibit of animals, however they aren’t alive. This zoo is a sculpture park and the animals are made from recycled farm machinery, auto parts and assorted metal.
• Spend a day shopping in Fort Collins. Shop for western clothing, antiques, sporting goods and stop for some homemade ice cream and toffee! Visit Historic Old Town and take pleasure in this unique shopping experience.
For more information on attractions and lodging visit: www.ftcollins.org

Glenwood Springs
• Glenwood Springs is famously known for its hot springs and rightfully so. At the Hot Springs you can soak in the therapy pool, swim laps or cool off in the deep end. This lodge offers fun for the entire family with a diving pool, waterslides and kiddy pool. If you stay for a weekend you get unlimited hot spring access.
• Since you will be spending the weekend in Glenwood Springs you should also visit the Glenwood Caverns Adventure Park. Experience horseback riding on Iron Mountain or challenge yourself on the climbing wall.
• With all of these adventures you will be in need of some relaxation in which the Vapor Caves will come in handy. Once a sacred healing destination for the Ute tribe, these underground caves are the only natural hot springs-fed vapor caves in the world. They are decorated with marble benches where visitors can relax and the upstairs spa features body and beauty treatments.
Visit www.glenwoodchamber.com for information on lodging and activities.
 

5:56 PM - Nov. 8, 2008 - comments {0} - post comment

We all have a home office

This article is by Lorrie Browne, a licensed Interior Designer, who shares her decorating expertise with easy-to-follow tips, practical advice, and hundreds of categorized online retail sources at www.mydesignsecrets.com.

When it comes down to it, we all work from home. Whether it’s the place where you earn a living or where you keep your family’s lives in order, you need space for the computer, paperwork and a few paper clips. Otherwise it’s a constant game of “Where did that bill go?” or “Please don’t play with my computer.” A clearly defined workspace not only creates an area for all the “stuff” but it also creates a private space that gains respect from those around you. From closets, to guest rooms, to an entire dedicated room, here is a simple plan to help you create a beautiful, comfortable and productive atmosphere.

1. Know your needs - Assess what currently works and what does not. Clean out the space and make sure your storage is adequate. Beyond file cabinets, consider baskets, bins and shelving.

2. Develop a floor plan - Don’t try to crowd too much furniture in the room and consider pieces that can pull double-duty. Ballard Designs has a cool little Home Office Kit to help you plan your space. Or just get out some graph paper, pencil and ruler and design the space yourself.

3. Create the Right Environment - Make it a comfortable and supportive environment for your creativity and concentration. Though I encourage you to go with your gut on color, here are some basic color/mood associations that might give you a boost:

Blue - calm, orderly, water
Green - nature, health, renewal
Orange - balance enthusiasm
Purple - spirituality, wisdom
Red - energy, strength
White - pureness, simplicity
Yellow - joy, optimism

4. Architectural Elements - If your budget and time allow, then go for the gold with new flooring, molding and lighting. My friend and trusty Web developer, Andrew, is redoing his office so I put together these tips with him in mind.

Flooring: I recommend hard surfaces with wood topping the list. Carpeting can get dusty and I like to keep the area around the computer equipment super clean.

Molding: Be bold with base and crown moldings. Don’t look to the original molding for size. Often they are wimpy and small. If you have 9 foot ceilings then anything up to 9? each for the crown and the base is fair game. I usually make the base a couple of inches less than the crown. Mixing traditional moldings with modern furniture gives the space a designer touch.

Lighting: The best lighting for a workspace is a combination of good general lighting (such as recessed lighting) highlighted with some task lighting (lamps).

5. Personalize: Working from home allows you to personalize your space and really make it your own. There are no rules! Highlight the room with your favorite painting or a lamp with a cool shade. Use a cork-board for special mementos or family photos. Just make sure your office portrays an air of professionalism if you meet with clients in your home.

Artwork, lamps and accessories give some pop to this mostly black and white space.

It doesn’t take much to turn a simple space into a home office. And the boost to your efficiency and peace of mind will be priceless.

5:51 PM - Nov. 6, 2008 - comments {0} - post comment

Get healthy and stay healthy

This time of year means the return of something less than fun... the dreaded cold and flu season. And the cost of the season is nothing to sneeze at! Did you know that Americans spend approximately $4 Billion on over the counter cold and flu remedies? That's not even factoring in how much time and productivity is lost on sick-time in the workplace, or co-pays for doctor visits and prescriptions.

To Help Stay Healthy, Start Following These Quick Tips Now:

Determine how susceptible you are. Start by asking yourself a few simple questions: Were you ill several times last year? Do you frequently feel fatigued? Do you sleep less than seven hours per night? If you answer yes to several of those questions, it may be a good idea to consult your doctor for a pre-flu season check-up.

Build up your immune system. Take the time now to catch up on sleep and get a flu shot. In addition, make sure you're getting enough Vitamin C and Zinc. Taking these supplements has been shown to markedly reduce cold symptoms.

Wash your hands frequently. Hand-to-mouth contact is the most common way that people get sick, so keep those hands clean and encourage your family to do the same. You can also carry a hand sanitizer with you to keep your hands germ free when you can't wash.

Wash your nose? Here's a little known--yet effective--tip for combating the cold and flu season. By using a simple saline nasal wash or nasal irrigation, you can actually help rid yourself of colds and allergies. Although it doesn't look pretty in action, it's effective in washing away germs and particulates, as well as healing and protecting your nasal passages. The fact is, when dry winter air makes the tissues inside your sinuses dry and cracked, germs have a perfect place to live and breed, which makes you sick more easily. But a saline nasal wash, available at most drugstores, can lubricate, protect and clean those nasal tissues to help keep healthy. And it may help reduce snoring!

By taking a little time to protect yourself from illness, you can help make sure that you are able to enjoy the things that are important to you... like spending time with family and friends, working hard at your career, and remaining healthy and active during the fall and winter seasons!
 

5:41 PM - Nov. 4, 2008 - comments {0} - post comment

Managing in this economic climate

The U.S. economy has taken a turn to tougher times, and many citizens are feeling the pinch. To help ease the strain, Bills.com President Ethan Ewing offers five specific areas of economic tightening — and suggests actions individuals can take.

“About five years ago, low interest rates were on their way out; Americans were dipping into home equity; gas prices averaged less than $1.50 per gallon; and with the dollar at a record high in 2002, we could jet-set and import to our collective heart’s content,” Ewing noted. “Today, of course, the picture has changed dramatically.”

Bills.com provided these five points to help individuals update their financial plans to reflect the biggest changes in Americans’ personal economies.

1. What and how you drive.

• Then: SUV sales peaked at 56% of all vehicle sales in 2004, when gas cost $2 a gallon.
• Now: With gas prices around $4 a gallon in most U.S. markets, large SUVs were 8% of all vehicle sales in 2007.
• What to do: Choose a car that fits your budget and lifestyle. If you require a lot of seats or cargo space, find the best mileage you can, while bearing in mind safety and other factors.
• “If you own an SUV that you cannot sell, do not panic,” Ewing said. “Holding a vehicle often makes more sense than taking a big financial loss. If gas prices are crunching you, look into other options, such as walking or bicycling to work, carpooling, taking public transit, finding a job and home that are located closer together, or investing in an inexpensive means of transportation, such as an older, good-mileage vehicle or a scooter.”

2. Interest rates.

• Then: Interest rates on conservative investments ranged from 0.6% for passbook savings to 2.9% for a five-year certificate of deposit (CD).
• Now: Rates are slightly higher — nearing 4% as of this writing — for a five-year CD and comparable on other products.
• What to do: Interest rates tend to be fairly consistent across institutions, but do research and invest accordingly. Consult a reputable financial advisor for counsel.

3. Financial security.

• Then: Just 10 banks failed nationwide between 2003 and 2007.
• Now: In February, CNN reported that more than 100 banks could fail within the next year or two.
• What to do: Be sure your money is insured. Check your bank’s documents to be sure they have the Federal Deposit Insurance Corporation (FDIC) mark. The FDIC insures individual deposit accounts up to $100,000, and IRAs up to $250,000. Ask the bank to be sure, or check with the FDIC (www.fdic.gov). Credit union deposits are covered by the National Credit Union Administration.

4. Home equity.

• Then: In 2002, Americans borrowed $130 billion from their home equity — twice the rate of the previous year. Banks advertised home equity loans at a furious pace.
• Now: Many banks no longer offer home equity loans, and homeowners with pre-approved credit lines have seen their total credit lines slashed.
• What to do: Considering that home values have, at best, held steady, and in some areas dropped up to 50% in the past few years, many homeowners should be grateful if they are not in debt trouble on their home. If you were relying on a line of credit, look at new options. If you wanted to borrow to remodel and you have substantial equity, talk to your banker to evaluate your choices. If you were counting on a line of credit for an emergency fund, look at other options, from saving regularly to build a cash fund, to selling the home and downsizing to be better prepared for retirement or a lifestyle change.

5. Inflation.

• Then: In 2002, someone earning $36,764 per year was about average across the United States.
• Now: To have the same purchasing power, in 2007 a worker would need to earn $42,372 — nearly a 14% increase. Yet the Bureau of Labor Statistics reports the mean annual earnings of all workers in 2007 as $41,994. Couple that with a consumer price index that has increased by 6.2% in the last 12 months, and no wonder many people feel a pinch.
• What to do: Now more than ever, it is important to learn to live within a budget. Careful planning and a realistic perspective can reduce the stress of overspending.

2:15 PM - Nov. 2, 2008 - comments {0} - post comment

Good news for consumers

”Ironically enough, consumers benefit in three ways from all the turmoil going on right now on Wall Street,” said Gibran Nicholas, chairman of the CMPS Institute, an organization that certifies mortgage bankers and brokers. These benefits include:

1 - Greater Negotiating Power on Underwater Mortgages. “Wall Street is finally marking down the value of their mortgage related assets to levels where it is very attractive for mortgage servicers to negotiate with distressed home owners and modify their mortgages,” said Nicholas. Consider this illustration for more details:

http://www.cmpsinstitute.org/pdf/WriteDownsandHomeownerNegotiatingPower.pdf

Also, more info on this can be found on this through a recent television interview conducted on Monday, September 15, between Fox 2 Detroit and CMPS Chairman Gibran Nicholas:

http://www.myfoxdetroit.com/myfox/pages/Business/Detail?contentId=7438423&version=2&locale=EN-US&layoutCode=VSTY&pageId=4.1.1

2 - Profit on Sale of Financial Assets Acquired through Government Takeovers. “The crisis with AIG is kind of like a homeowner who owns a $1mm house and can’t afford next month’s payments on their $100,000 mortgage,” said Nicholas. “Even as it is virtually impossible to expect the homeowner to sell their $1 million home at a fair price in just one week, is also very difficult for large companies like AIG to sell assets and raise capital in short periods of time. The only difference between AIG and the homeowner in this scenario is in the number of zeros involved. The US Government is the only entity that is large enough to help AIG raise enough funds in such a short period of time in order to help the company maintain its financial obligations. It’s as though the government just got 80% control of that $1mm property in exchange for giving the property owner some more time to sell the property at a decent price.”

The Fed stands to make over 11% interest (LIBOR + 8.5) on the $85 billion line of credit they extended to AIG yesterday. Also, through the 79.9% equity stake the government now has in AIG, taxpayers stand to make a profit when the government sells AIG’s assets in the coming months in order to repay the loan. “Just because you can’t sell something quickly in two or three days doesn’t mean it isn’t worth anything,” said Nicholas. “AIG just needs time to sell some of their assets in an orderly fashion and at a fair price.” The loan from the Fed gives them that time and taxpayers stand to profit because they just became AIG’s biggest shareholder at virtually no cost other than the short term Fed loan.

3 - Low Mortgage Rates. Interest rates on fixed rate mortgages are tied to the Fannie and Freddie mortgage bonds that trade on the bond market. As Wall Street goes through crisis, and as the government bailout of Fannie and Freddie makes their bonds very attractive and almost risk-free for investors, mortgage rates should remain low throughout the near future. “American homeowners can take pride that their borrowing costs are among the lowest in the world, and even lower than the rates that many of the big Wall Street firms are paying right now,” said Nicholas. “Even if you have an adjustable rate tied to the LIBOR or Prime index, these rates should also remain low well into 2009 because they closely track the Fed Funds rate that is controlled by the Federal Reserve. The Fed really has no desire to increase interest rates in the middle of credit crisis.”

The only losers in this scenario are the homeowners who don’t qualify for Fannie and Freddie loans. “Unfortunately, these home owners will continue to see their borrowing costs increase due to the credit crisis and lack of liquidity among banks and financial institutions,” said Nicholas.

2:08 PM - Oct. 31, 2008 - comments {0} - post comment

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