Monday, May 30, 2011

Tips on How to Choose Your Movers


Moving involves a lot of planning and organizing. And it can be very stressful and expensive. It's important to carefully consider the movers that you will hire to transfer your beloved possessions from your old house to your new home.  Here are some tips in choosing a moving company.

Get an In-Home Quote

The movers won't be able to tell you how much time they'll need to break down your bed until they've actually seen it. And the same goes for all your funitures.  Any quote you get from a mover on costs and time must be based on an on-site inspection.  "It's best to get an in-home estimate so they can make an accurate estimation of moving costs," says Sheila Adkins, spokesperson for the Better Business Bureau. Some movers will provide an estimate over the phone or over the internet, however, the actual charges may be higher than the given quote because of unexpected extra hours put in by the movers.

The Department of Transportation's Federal Motor Carrier Safety Administration (FMCSA) requires an interstate mover to give you an in-home estimate if your current home is 50 miles from the mover's place of business. And don't forget to get the full quote in writing which should contain all the itemized charges associated with the move so that you'll have a reference.

Shop Around for Movers

"Get at least three written estimates, but don't just select the lowest price," says Adkins. It's important to get quality service at the lowest possible price. Collect written, itemized estimates from multiple moving companies in your area, then choose which one you think can provide you the best service. You can also solicit advise from your family, friends and neighbors.

Check Their Credentials

Only consider movers that are licensed, bonded and insured.  Once you've chosen your movers, investigate them through the US Department of Transportation, MovingScam.com and Better Business Bureau.

Your chosen mover should be registered with FMCSA. To check, please go to safer.fmcsa.dot.gov.

Take a Photo of All Your Properties for Insurance Purposes

A legitimate mover will make an inventory of all properties before the move to make sure that nothing is lost.  But take a snapshot of all your properties before the move as a precaution. It's easier to claim damages when you have a picture of before and after the move.

Protect Your Walls, Doorways and Carpets

Furnitures aren't the only things that can be damaged during a move. Walls, doorways and carpets in both your old and new houses can be damaged as well. Make sure that the moving company include rug runners and door pads to protect your carpets and door frames. The use of these pads should be included in your contract, also known as the bill of lading. The protective pads should be itemized in the bill of lading to prevent any unforseen charges.

If you want to have a list of reputable moving companies, please contact me.

Monday, May 23, 2011

ABOUT MORTGAGES




When you're shopping for a new home or looking to refinance your existing home loan, it's very important to choose a mortgage that will fit into your budget. The most common types of mortgage are fixed rate mortgage and adjustable rate mortgage.

When you have a fixed rate mortgage, you know that your payment will be the same now, ten years and twenty years later. The mortgage payment is constant over time because the interest rate is fixed. On the other hand, an adjustable rate mortgage is a mortgage which has an interest rate that changes periodically. When you choose an adjustable rate mortgage,  you accept the risk of changing interest rate over a period of time.  The more risks you accept, the lower your initial interest rate will be. The more adjustments stated in the loan mean that the risks will be higher. 

It is very important to understand the two factors that affect the interest rate.  The 2 factors are: the index and the margin. The commonly used indexes are the London Interbank Offered Rate (LIBOR) and the US Constant Maturity Treasury (CMT). The interest rate is dependent on the the current financial market conditions, which is why the ARM interest rate can change at each adjustment period. The margin is the percentage that can be added to the index. 

All ARMs have rate caps. Caps decide how much the interest rate can increase or decrease at each adjustment and over the life of your loan. For example, a 10/1 ARM with a 5/2/5 cap structure means that for the first 10-years the rate is unchanged, but on the 11th year (the date of first adjustment), your rate can increase by a maximum of 5% above the initial rate. Every year after, your rate can adjust a maximum of 2%. But your rate can never be more than 5% throughout the life of the loan.

All ARMs have adjustment periods that determine when and how often the interest rate can change. There is an initial period during which the interest rate doesn't change - this period can range from 6 months to as long as 10 years.  After the initial period, most ARMs adjust the interest rate periodically. 

Borrowers choose the adjustable rate mortgage because of the following reasons:
- They cannot afford the higher interest rate of a fixed mortgage.
- They believe that they can finish paying the property off before the rate moves to variable.
- They believe that the interest rate will not move up over time.
- They do not anticipate staying in the property past the period where the ARM is fixed. They either expect to move to another location or a house upgrade before the interest rate changes.
- They leverage an interest only ARM which only requires interest payments on the loan and will have lower interest rates as well; thereby, keeping monthly payments to a minimum.

There are 3 main types of adjustable rate mortgages:

Interest-Only ARM only requires borrowers to pay interest of the loan rather than principal + interest. This will result to a smaller payments for the duration of the interest only period.  However, it does not decrease your outstanding principal balance. After the interest-only period, the borrower will be responsible for fully amortizing the loan over the amortization period. This will substantially increase the monthly payments after the initial interest-only period lapses. For example, if you take out a 7/1 interest only ARM on a 30 year amortization schedule, you are taking a fixed rate interest only loan for 7 years and will be required to amortize the outstanding principal balance over the next 23 years at an adjustable rate (which can change every year).

Hybrid ARM blends the characteristics of a fixed-rate mortgage an adjustable-rate mortgage. This type of mortgage will have an initial fixed interest rate period followed by an adjustable rate period. After the fixed interest rate expires, the interest rate starts to adjust based on an index plus a margin. 

Payment-Option ARMs which allows the borrower to choose between several monthly payment options: a 30 or 40-year fully amortizing payment, a 15-year fully amortizing  payment, an interest-only payment, a minimum payment or any amount greater than the minimum payment. Minimum payments accept less than the interest expense charged to the loan. 30-year amortizing payments pay off the mortgage in thirty years. Interest-only payments pay interest upon the loan---without reducing any mortgage principal.

Mortgage is essential in the home buying process. With some planning, you can choose a mortgage that saves you money. Consult with a Mortgage Professional which mortgage type is more suitable for you.

Monday, May 16, 2011

It's Time To Give Back to the Community - Keller Williams Alaska!


RED Day stands for Renew, Energize and Donate.  It's a special annual Keller Williams event about giving back to the community.  It is an initiative dedicated to celebrating the organization's year-round commitment to improving its local communities.

Red Day is dedicated in honor of Keller Williams Realty's Vice Chairman of the Board, Mo Anderson. With her continuous leadership, she has inspired thousands of associates to maintain high standards of character in both their personal and professional lives.

This year, last May 12, 2011, tens of thousands Keller Williams associates from across the United States and Canada participated in a wide range of projects, devoting their time to renewing and energizing aspects of the neighborhood in which they are a part of. Projects are chosen by each individual market center based on the need they see within their community. Rebuilding homes, refurbishing local parks, giving to local food shelters, hosting blood drives, beautifying beaches - to name a few were some of the undertakings of the different market centers.

Keller Williams - Alaska Group has partnered with Habitat for Humanity to build homes in Anchorage. We had a Ground Breaking activity in preparation for building a home for a family held last 12th of May as part of our Red Day commitment. In addition to providing thousands of volunteer hours, we are also committed to raising $100,000 to fund this project.  This will be a continuous project in the next coming months. We welcome volunteers for this project or if you want to make monetary contributions, please contact me.

In line with raising funds for Habitat for Humanity, Keller Williams - Alaska Group will also be presenting a Professional Poker Seminar and Tournament for the benefit of Habitat for Humanity.  This will be held this coming Saturday, May 21st at 188 W. Northern Lights on the 10th floor. This is the building on the corner of Northern Lights and C street right next to the Keller Willams office.  The Poker Seminar will be hosted by Professional Poker Player Gavin Smith. Gavin has won over $5 million dollars in tournament winnings and is a World Series of Poker bracelet  winner and a World Poker Tour champion.  He is also featured regularly on NBC TV's Poker After Dark series. Following the Seminar there will be a dinner buffet catered by Ruby's cafe. After the seminar and buffet there will be a free No Limit Texas Hold 'Em Poker tournament with some incredible prizes. You can get the tickets for $200 – if you buy in advance but if you buy tickets on the day itself – it will be at $250. All proceeds from this event will be for the sole benefit of Habitat for Humanity.

At Keller Williams, we believe in giving back to our community.  We are honored to be able to do incredible acts of service for our community. If you want to be a part of this fantastic opportunity, please call me at 242-7653.  You may be a volunteer or just someone who is eager to help. However you choose to get involved, every little bit counts.  It will surely bring our community closer together.

Tuesday, May 10, 2011

Home Loan Basics



Home loan makes the dream of owning a house come true.  By obtaining a home loan, owning a home is made easier and quicker for an average income earner.  To have your loan approved quickly, make sure that you have a good credit score and you have all the necessary documents readily available. And once you get approved, it's important to read and understand the loan document clearly.  You have to know all the ins and outs of a home loan.  This will save you time and money in the future.  Here are the basics of home loan to get you started:

1. Fixed-rate mortgage 
A fixed-rate mortgage is a mortgage with a fixed interest rate for the entire term of the loan. The benefit of a fixed-rate mortgage is that the homeowner will have a constant loan payment amounts all throughout the loan term. 

2. Adjustable Rate Mortgage or ARM
An adjustable rate mortgage is a mortgage which has an interest  rate that changes periodically. When you find a document  titled "NOTE" at the top and it says, "ADJUSTABLE RATE NOTE" at the top in big letters, then this means that your loan is an Adjustable Rate Mortgage. A common adjustment schedule might be 2/2/5, meaning, the rate won't adjust for 2 years after  you got your loan, it can go up or down a maximum of 2% a year and caps out at a maximum of 5% higher than your initial rate. In general, interest rates on ARMS will be lower than the interest rates on fixed products in order to compensate the borrower for the added risk of having a variable payment in the future.

3. Mortgage Insurance 
A mortgage insurance is an insurance policy that protects the mortgage lender in case the borrower defaults on the loan. Mortgage Insurance is also referred as Private Mortgage Insurance or PMI. The mortgage insurance is required when the borrower makes a down payment of less than than 20% of the home purchase price. However, the insurance can be cancelled out once the homeowner reaches 20% home equity. This will have a significant effect on your savings per month.

4. Loan Programs
There are different types of loan programs available for different kinds of borrower. To learn which type of loan program that is best suitable for you, please visit http://www.alaskausamortgage.com/programs/

5. Prepayment Penalty
A prepayment penalty is a penalty enforced on a borrower once he/she pays off the loan earlier than scheduled. In practice, the borrower has agreed to pay a certain amount of interest over a certain amount of time. If the borrower, pays the loan off sooner than originally agreed, then there is less interest to pay. Therefore, the lending institution stands to lose money. It is important to understand the prepayment penalty clause should you decide to sell or refinance before the penalty expires. 

For further questions on home loans, please contact your local mortgage lender or call me for a list of reputable lending companies that might be able to help you.

Monday, May 2, 2011

Home Energy Rebate Program





There are a lot of benefits in making energy efficiency improvements to your home. It will not only make your house more comfortable and healthy to live in, it will also save you money on utility bills. Saving energy also protects your from the impact of continuous increase of energy prices and fuel shortages.

As you know, there are a lot of advantages in owning your own home -- you can customize your home design based on your tastes and preferences; it can build your equity; tax benefits; your monthly housing payment stays fairly constant all throughout your mortgage term. Furthermore, homeowners can take advantage of the Home Energy Rebate Program. The Rebate Program assists homeowners in making the best energy-efficiency improvements for their home. The program requires a certified home energy rater to evaluate homes before and after the improvements. The more a home-energy efficiency improves, the greater the possible rebate. The rebate program is only available to homeowners, renters are not eligible for the program.

To participate in the program, you must follow these steps:

- Request an AkWarm energy rating by signing up on the waiting list at www.akrebate.com or calling 1-877-AKREBATE (1-877-257-3228).
- The As-Is energy rating generates an Energy Efficiency Improvement Options Report that serves as a guideline for AHFC and the homeowner regarding the energy savings, cost of the improvement and return on the energy improvement investment.
- Submit to AHFC copies of the Home Energy Rating certificate (As-Is), Energy Efficiency Improvement Options report (As-Is), proof of ownership (tax parcel notice, transfer deed or deed of trust, that matches property address on the rating and confirms the homeowners name), energy rater’s receipt or check copy,  and the As-Is Energy Rating Reimbursement Form, (HER-1 Invoice) signed by the rater and the homeowner. Within 60 days of receipt, AHFC will reimburse the homeowner for the As-Is rating. Submitting this paperwork indicates to AHFC that a homeowner is participating in the rebate program and funds for a possible rebate are encumbered for 18 months from the date of the As-Is rating.
- Make improvements selected from the Energy-Efficiency Improvement Options Report (within 18 months). 
- Rating points are listed for each improvement option. Choose the improvements that will gain enough points to  increase the energy rating. Homeowners may complete the  improvements (rebate is applicable to materials only) or hire a contractor (rebate applicable to materials and labor). Only those items relating to energy efficiency and recommended in the Energy-Efficiency Improvement Options Report are eligible for the rebate.
- After the work is completed, request an AkWarm Post-Improvement energy rating by signing-up on the waiting list at www.akrebate.com or calling 1-877-AKREBATE (1-877-257-3228). The rater will verify the improvements and provide the homeowner with a new energy rating certificate. The rebate amount is determined by the increase in the Post-Improvement rating. (For example, if the As-Is rating was 3 Star+ and the Post-Improvement rating is 4 Star that is a One Step increase, eligible for a rebate of up to $4,000.00).

Maximum Rebate Amounts are:
One Step Up to $4,000
Two Steps Up to $5,500
Three Steps Up to $7,000
Four Steps Up to $8,500
Five Steps Up to $10,000

A homeowner is only eligible to receive a rebate of actual expenses. For example: A  homeowner spends $3,500 on energy efficient improvements and the home’s energy rating increases Two Steps. The homeowner will only receive a rebate of the actual expenses or $3,500, not  $5,500 as a Two Step improvement would indicate above.
Submit to AHFC copies of the Post-Improvement Home Energy Rating certificate, the energy rater’s receipt or check copy for Post-Improvement energy rating, proof of payment for the eligible improvements completed, and the Post-Improvement Rating Reimbursement & Rebate Form  (HER-2 Invoice) within 18 months from the date of the As-Is energy rating. Within 60 days of receipt, AHFC will reimburse the homeowner for the Post-Improvement rating and provide the rebate.

If you want to make your home more energy efficient but do not have enough funds to do so you may apply for a Second Mortgage Program for Energy Conservation. The maximum loanable amount is $30,000 with a maximum loan term of 15 years.

If you want to know more information about trainings, workshops and products related to home efficiency, you may check out http://www.ahfc.state.ak.us/workshops/workshops.cfm