Greater Boston Real Estate Chatter

Dumping Your Debt

Millions of Americans set a goal for and succeed in paying off thier credit card debt each year-is this one of your goals? With a little determination and a plan, you can take control of your credit score in the process.  Here's how:

Cut The Cards

The first step toward reducing your credit card debt is to stop adding to it.  You don't need to literally shred all of your cards, but you do need to stop using them routinely.  Try one (or all) of the tips below to break this habit:

Carry Cash- Give yourself a weekly cash allowance so that you are more aware of what you are actually spending.  Plus, once you run out of money, you're more apt to stop spending.

Use Debit, Not Credit- For times when only plastic will do, use your debit card instead of a credit card.

Out of Sight, Out of Mind- Keep your credit cards at home and you'll be less likely to use them.

Think Strategically- Decide on two to four credit cards with which you have a lengthy, positive history, and close any other accounts. Having a few good accounts will boost your credit score, but having too many will hurt it (and may also keep you tempted to spend money you don't have).

Lower Rates/Cut a Deal

Once you've got your spending under control, focus on reducing your interest rates.

Negotiate rates- Call up your credit card issuers and ask for a better rate.  Explain that you plan to transfer the balances to another card unless your rate is lowered.  Usually borrowers with good credit scores can cut thier rates by a few points.

Transfer Balances- Consider transferring balances from cards with high interest rates to a different card.  Look for offers with low introductory rates that are good for at least a full year, with relatively low rates thereafter. be sure to read the fine print and and pass up offers from cards with hidden fees or costs.

Shop around- Do a little investigative work to find the best card offers.  Use the internet to research and locate current offers.

 

Reduce Your Debt

Now it's time to start chipping away at those balances.  Develop a strategy and make it happen, using the following tips:

Sort it out- Make a listof each credit card you have, its existing balance, minimum payment and interest rate.  Use either of the online caluclators listed here to help to determine which card to pay off first.

Free Online Debt Reduction Planners

CNN Money Magazine    http://money.cnn.com/tools

Quicken     http://www.quicken.com/planning/debt/

Develop a plan- Pay as much money as you can on your card with the highest interest rate, while paying the minimum on the other cards.  This additional payment on the high-rate card will help to pay off the principal faster.

Build a debt snowball- Once your highest interest rate card is paid off, take the same amount you have been paying on that card and add it to the minimum payment on the card with the next highest interest rate (this is commonly referred to as "snowballing" or a debt-reduction rolloover of your payments). Continue to pay the minimum on the remaining accounts, repeating the process until you are debt-free.

Have a back-up- Keep one low-interest card put away for emergencies, but maintain a zero monthly balance at all times by paying it off when due.

 

Think Ahead

Now that you're debt-free, start thinking even further ahead:

Invest- Begin to invest the same amount of money you've been applying to debt every month.  You've trained yourself to live on less by paying as much as possible toward your debt each month, now take that philosophy and use it to your advantage, reinforcing that thrift must continue in order to develop a mindset of abundance.

Visualize- Spend a few moments each day imagining what it will feel like to be debt-free, paying cash for every purchase and looking forward to a comfortable retirement!

 

TIP: Call 1-888-5-OPTOUT to stop the flood of credit card offers from reaching your mailbox.

 

Keep an eye out for my next post for managing that very important number that everyone has.......I'm talking about your credit score! "Managing your Credit Score" coming soon!

 

 

Economic Update for 6/29/10

Existing home sales fell 2.2% in May to a seasonally adjusted annual rate of 5.66 million units from a revised 5.79 million units in April. The inventory of unsold homes on the market decreased 3.4% to 3.89 million, an 8.3-month supply at the current sales pace, down from an 8.4-month supply in April.

The Mortgage Bankers Association said its seasonally adjusted composite index of mortgage applications for the week ending June 18 decreased 5.9%. Refinancing applications fell 7.3%. Purchase volume fell 1.2%.

New home sales fell 32.7% in May to a seasonally adjusted annual rate of 300,000 units from a downwardly revised rate of 446,000 units in April. It was the slowest sales pace since recordkeeping began in 1963. New home sales have fallen 78% from their peak in July 2005.

Orders for durable goods — items expected to last three or more years — fell 1.1% in May after increasing a revised 3% in April. The drop was largely due to a decrease in demand for commercial aircraft. Excluding volatile transportation-related goods, orders posted a monthly increase of 0.9%.

In its third and final report, the Commerce Department announced that gross domestic product — the total output of goods and services produced in the U.S. — increased at an annual rate of 2.7% in the first quarter of 2010, rather than the 3.2% increase initially reported.

Initial claims for unemployment benefits fell by 19,000 to 457,000 for the week ending June 19. Continuing claims for the week ending June 12 fell by 45,000 to 4.54 million.

Upcoming on the economic calendar are reports on the housing price index on June 29, pending home sales on July 1 and factory orders on July 2.

Economic Update for 6/7/10

The Institute for Supply Management reported that the monthly composite index of manufacturing activity was 59.7 in May, after reaching 60.4 in April. A reading above 50 signals expansion. It was the 10th straight month of expansion.

Total construction spending rose 2.7% to $869 billion in April, following an upwardly revised 0.4% rise in March. April's gain was the biggest since August 2000.

The National Association of Realtors reported that its pending home sales index, a forward-looking indicator based on signed contracts, rose 6% in April, after a revised 7.1% increase in March. On a year-over-year basis, pending home sales are up 22.4%.

Factory orders rose 1.2% in April, below the 1.8% increase economists had anticipated. It was the eighth straight gain and follows an upwardly revised 1.7% increase in March.

The Institute for Supply Management reported that the monthly composite index of non-manufacturing activity was 55.4 in May, unchanged from 55.4 in April. A reading above 50 signals expansion. It was the fifth consecutive month of growth. Economists had anticipated a reading of 55.6.

The Labor Department reported that in the first quarter productivity rose at an annual rate of 2.8% and labor costs fell at an annual rate of 1.3%.

Initial claims for unemployment benefits fell by 10,000 to 453,000 for the week ending May 29. Continuing claims for the week ending May 22 rose by 31,000 to 4.66 million. Employers added 431,000 jobs in May, following a 290,000 advance in April. This pushed the unemployment rate down from 9.9% in April to 9.7% in May.

Upcoming on the economic calendar are reports on wholesale trade on June 9, international trade on June 10 and retail sales on June 11.

Economic Update for 5/18/10

The Commerce Department said wholesalers increased their inventories by 0.4% in March, following a 0.6% rise in February. Sales at the wholesale level rose a robust 2.4% in March, marking the 12th straight monthly gain.

The Mortgage Bankers Association said its seasonally adjusted index of mortgage applications for the week ending May 7 rose 3.9%. Refinancing applications jumped 14.8%. Purchase volume decreased 9.5%.

The trade deficit increased 2.5% to $40.4 billion in March, from a revised $39.4 billion gap in February. Economists had expected the trade deficit to widen to $40.1 billion. Exports rose 3.2% to $147.87 billion. Imports increased 3.1% to $188.3 billion.

Retail sales rose 0.4% in April, following an upwardly revised 2.1% increase in March. Economists had anticipated retail sales to rise 0.2% in April. On a year-over-year basis, retail sales increased 8.8%.

Industrial production at the nation’s factories, mines and utilities increased 0.8% in April, following a 0.1% gain in March. It was the 10th consecutive monthly increase. The overall factory-operating rate rose to 73.7% of capacity in April, the highest reading since November 2008.

Total business inventories rose 0.4% in March, following an upwardly revised 0.5% increase in February. All components showed nearly uniform increases in March: manufacturers up 0.3%, retailers up 0.4%, wholesalers up 0.4%.

Initial claims for unemployment benefits fell by 4,000 to 444,000 for the week ending May 8. Continuing claims for the week ending May 1 rose by 12,000 to 4.627 million.

Upcoming on the economic calendar are reports on the housing market index on May 17, housing starts on May 18 and the index of leading economic indicators on May 20.

Remodeling the Exterior of Your Home- Worth it??

Considering remodeling the exterior of your home with new siding and windows?? Go for it!!! this is one home remodeling project that actually has the highest percentage in regards to cost recovered in resale.  You can be sure that if you sell your home you could recover up to 88% of what you put into the project.  It's all about curb appeal!!

Siding:

Remodeling the exterior is as much about maintenance as it is curb appeal. Vinyl siding looks fresh and tidy year after year with minimal upkeep.  With stucco siding, a new polymer covering can be sprayed or troweled onto a fiberglass mesh base.

Windows:

New windows will help you realize additional savings in monthly utility bills.  Prospective buyers view windows as they do other structural items, so failing to update old ones can result in lower-or no-resale offers.  Newer styles include seamless bent-glass corner windows, curved glass and casements with no center stile.

 

Why Remodel?

Ideally in resale you'll be able to regain the money you put into a remodel.  With some projects, you may recoup more than you spend! Remember that payoff also depends on:

• Condition of the house overall
• Value of similar houses in the neighborhood
• Availability of new homes in the area
• Rate at which property values are changing
• Location

Economic Update for 5/5/10

The Commerce Department announced that gross domestic product — the total output of goods and services produced in the U.S. — increased at an annual rate of 3.2% in the first quarter of 2010. Economists had expected a slightly larger 3.4% increase. This follows a 5.6% pace of growth in the fourth quarter of 2009, marking the best back-to-back performance since the second half of 2003.

According to the ICSC-Goldman Sachs index, retail sales rose 0.2% for the week ending April 24. It was the sixth consecutive gain. On a year-over-year basis, retailers saw sales increase 5.5%, the best showing on record, topping a 4.7% increase for the week ending April 3.

The Standard & Poor’s/Case-Shiller 20-city housing price index fell a seasonally adjusted 0.1% in February. Following a 0.3% increase in January, it was the first decline after eight consecutive monthly gains.

The consumer confidence index rose to 57.9 in April from a slightly revised 52.3 in March. Economists had anticipated a reading of 53.5. The index was benchmarked at 100 in 1985, a year chosen because it was neither a peak nor a trough in consumer confidence.

The Mortgage Bankers Association said its seasonally adjusted index of mortgage applications for the week ending April 23 fell 2.9%. Purchase volume increased 7.4%. Refinancing applications fell 8.8%.

Initial claims for unemployment benefits fell by 11,000 to 448,000 for the week ending April 24. Continuing claims for the week ending April 17 fell by 18,000 to 4.6 million.

Upcoming on the economic calendar are reports on construction spending, pending home sales and factory orders on May 4, and consumer credit on May 7.

Remodeling Your Home By The Numbers

Maybe you've been feeling the need for more space, less space or just different space.  You've been wondering-which solution will give me what I want with the least financial hit?  Here's one gauge to use: Expect moving to cost about 10% of your home's current value.  If your remodeling project can be done for less than that, stay and do it!! But plan it with an eye on the potential resale value.  Read on for ideas and tip that will help you take the lead in plotting your home remodel.

So what should you remodel??  Here are a few suggestions from industry experts for the Interior of your home:

Kitchen

Add usability with dual sinks and cooking stations. Add aesthetics with commercial-quality and stainless steel appliances, stone or stainless steel countertops and ceramic tile back splashes.  Add space with a breakfast nook or walk-in pantry.  Add livability with a computer desk, mudroom or hobby area.

Bathroom

Add light with skylights and glass blocks without losing privacy.  Add space with a walk-in dual shower, vaulted ceiling, recessed medicine cabinet or curved shower curtain rod. Add functionality with twin sinks or vanities. Add aesthetics with ceramic tile or stone florring, stone countertops and heated towel bars and floors.

Look out for my next post on suggestions for remodeling the exterior of your home, as well as how to maximize your remodeling dollars!

Economic Update 4/14/10

The Institute for Supply Management reported the monthly index of non-manufacturing activity rose to 55.4 in March from 53 in February. A reading above 50 signals expansion. Economists had anticipated a reading of 53.3. The reading was the highest since May 2006.

The National Association of Realtors reported that its pending home sales index, a forward-looking indicator based on signed contracts, rose 8.2% in February after a revised 7.8% decrease in January. The February reading was the largest gain since October 2001.

According to the Federal Reserve, consumer credit debt fell in February by $11.5 billion, an annual rate of 5.6%. Economists had forecast that consumer debt would rise by $500 million. Consumer credit rose in January by $10.6 billion, ending a record 11 consecutive months of decline.

Sales at U.S. retail chains rose 9.1% in March. It was the largest monthly jump since recordkeeping began in 2000. Economists had anticipated a 6.3% increase.

Initial claims for unemployment benefits unexpectedly rose by 18,000 to 460,000 in the week ending April 3. Continuing claims for the week ending March 27 fell by 131,000 to 4.55 million.

The Mortgage Bankers Association said its seasonally adjusted index of mortgage applications for the week ending April 2 fell 11%. Purchase volume increased 0.2%. Refinancing applications fell 16.9%.

The Commerce Department said wholesalers increased their inventories by 0.6% in February following a revised 0.1% rise in January. Sales at the wholesale level rose 0.8% in February, marking the 11th straight monthly gain.

Upcoming on the economic calendar are reports on retail sales on April 14, the housing market index on April 15 and housing starts on April 16.

Homebuyer Tax Credits Expire Soon!!

The Homebuyer Tax Credits Expire Soon

---

Don't miss out!  First time homebuyers will want to take advantage of these tax credits, and they must act fast. The tax credits are available to buyers who sign purchase agreements on a new or existing primary residence between December 1, 2009, and April 30, 2010. Buyers have until June 30 to close on their new home.

In addition to offering the $8,000 first-time homebuyer tax credit, the new law also allows a $6,500 credit for repeat or move-up homebuyers who have lived in their primary residence for five years or more.

There is an $800,000 price limit on all homes eligible for the credit. The income limits for all buyers are $125,000 per year for individuals and $225,000 for married couples. The first-time homebuyer credit is available to those who have not owned a home in the previous three years. The credit does not have to be repaid unless the home is sold or ceases to be the primary residence within three years.

If you have any questions about how the federal tax credits may benefit you, please call me today.

The above content is for informational purposes only and should not be used as a substitute for consultation with a tax advisor.

Welcome to the Greater Boston Real Estate Chatter Blog!

Welcome to my Blog! I decided to start a blog on the Real Estate market in the Greater Boston/North Suburban area.  I know, I know, some of you may be thinking" BORING"...I assure you, it won't be. I will give you updates about the Real Estate market, of course, but will also frequently talk about home improvement projects, as well as money and time saving tips when it comes to your home.  I hope to have a little something for everyone.  And I figure I get to combine some of my favorites things: Real Estate, Home Remodeling, and Writing. 

I also welcome the opportunity to educate people in the Boston and North Suburban areas on how great the Real Estate market is doing in our area.  All the scary stuff you hear on the news really doesn't apply much to us.  Yes, home prices have dropped some, but not as much as all other parts of the country. People are still buying and selling.  You may also hear, "It's impossible to get a loan".  Not true!! Getting a loan may be a little tougher, but it's not even close to how impossible the media will make it seem.  Good credit is VERY important in lending these days, so it's not that they wont lend, they just are more careful in being sure to lend to those with a good, strong credit history.  I'll give you tips on getting and maintaining a good credit score as well!

So if you have any questions you would like answered, please feel free to contact me.  That is what I am here for!  Also, feel free to give any suggestions on what you'd like to read about.  In the meantime, Enjoy!!