About Weatherization Assistance Program

Weatherization Assistance Program (WAP) is a government program that enables low income families

to permanently reduce their electricity bills by making their homes more energy efficient.

Funds are used to improve the energy performance by air sealing (weatherstripping, caulking), wall and 

ceiling insulation, heating system improvements or replacement, efficiency improvements in lighting, 

hot water tank and pipe insulation and refrigerator replacements with highly efficient Energy Star rated units.  Both single-family and multi-family buildings are assisted.  

WAP serves low-income families free of charge and limits the amount of assistance to $6,500 on any single residence. Household can have average savings of more than 20% per month once the program has started.  

Households with incomes at or below 60% of state median income are eligible for assistance.  Program services are available to both homeowners and renters, with priority given to senior citizens, families with children and persons with disabilities.

Weatherization Assistance Program helps our country reduce its dependence on foreign oil and decrease the cost of energy for families in need while improving the health and safety of their homes.  

For more information on Weatherization Assistance Program, please check out http://www1.eere.energy.gov/wip/wap.html.

Energy Saving Tips This Winter

In today's economy, it is important to search on ways on how we can we can easily reduce the monthly expenses.  Winter is just around the corner and winter heating costs have been steadily increasing these past few years. You can lower your heating costs by following these simple steps:

If you're in the market for an upgrade or an update, try going green. The initial costs may be high, but you will enjoy lower electricity bill in the future.  There are companies that can install solar or wind powered systems in your home.  We just received our PFC in the mail, it will be a great idea to use it on upgrading our home into a more energy efficient living space.  If you do not have the available cash, then at least consider all other options. 

Maintain a properly insulated home. Older homes may have limited insulation, thus they may have a higher electricity costs.  Adding insulation can be relatively inexpensive and can be a real money saver, since heat rises and can easily escape trough an improperly insulated room.  Insulation can also go beyond the inside or your walls.  Insulated (thermal) curtains can also do wonders for conserving energy.  They are thicker than the regular curtains and have several layers that serve insulating process.

Check for leaks around windows and doors.  If you have older, non-insulated windows, consider replacing them with energy efficient upgrades. You can even take a tax credit for these particular improvements.  

You may also install storm doors and windows to prevent heat escaping your home.

Installing a programmable Thermostat.  Set the temperature lower during night time and start heating before you wake up.  Your home will be warm during walking hours and you'll save money off your heating bill.

Do you know that you can get rewarded by making your home energy efficient?  One example is the Home Energy Rebate Program.  In the Home Energy Rebate Program, homeowners may receive up to $10,000 for making energy efficient improvements on their home.  If you want to learn more about other Energy Programs sponsored by the government, please check http://www.ahfc.us/energy/energy.cfm.

It can really get cold during the coming months, be sure to prepare properly for winter.  Keep heavy blankets, especially wool and warm clothes.  It may be necessary to pile on the layers instead of turning up the thermostat.

Your electricity bill will definitely go higher during the winter, but if you prepare in advance, you will earn significant savings with just few simple steps. 

If you need a list of service providers that can make your home more energy efficient, please don't hesitate to call me.

Increase in Guarantee Fees

Fannie Mae and Freddie Mac, the government-sponsored enterprises that purchase mortgages from lenders in order to create mortgage-backed securities, have announced that they will be increasing their guarantee fees next year to attract more private investment in the housing market.

Guarantee fees charged by Fannie Mae and Freddie Mac are fees that meant to help cover the issuer of the loan's expenses and reduce the risk of loss or default.

The new guarantee fees will be comparable to that of private investment houses.  The new fees will be implemented to encourage the private entities to invest the in housing market.

According to Edward J. DeMarco acting Director of the FHFA (Federal Housing Finance Agency), said that "The guarantee fees" charged would be increased to lessen the companies' long-term exposure to risks.  As Freddie Mae and Freddie Mac are backed by the tax payers, he said that the proposal would result to protecting the taxpayers from losing more money.  Fannie and Freddie have so far cost the taxpayers more than $140 billion in bailout money.  

In a CNBC report, according to the President's budget plan the increase in guarantee fees would produce $28 billion savings in over ten years.

However, some experts are worried that the increase in guarantee fees may hinder the possible recovery in the housing market which has suffered from falling prices since the credit crisis of 2008.  

If you need more information about guarantee fees, please don't hesitate to call or e-mail me.

The Plan for New Mortgage Relief Program

In the latest President's job speech, he briefly mentioned his plans on the housing market. Obama said that, "We're going to work with federal housing agencies to help  more people refinance their mortgages at interest rates that are now near 4%,” according to Bloomberg report.

Edward DeMarco, acting Director of Federal Housing Finance Agency or FHFA, which regulates Fannie Mae and Frediie Mac, said he is working with the administration on how to implement a mortgage relief program.

The refinancing plan would allow certain borrowers to refinance loans that are backed by government owned Fannie Mae and Freddie Mac or the Federal Housing Administration.

The idea is to help struggling borrowers refinance at current low interest rates, which would cut their monthly payments and free up cash for spending. The hope is that with cash available for spending, it will boost business activity. The current average mortgage rate on a 30-year fixed loan is 4.16%, while the 15-year fixed loan is at 3.37%.  

According to Bloomberg source, FHFA officials met with mortgage industry executives to discuss possible changes to Home Affordable Refinancing Plan or HARP last Friday, September 9.  No details were revealed as to what was the outcome of that meeting.

Two years ago, the Obama administration set up a program called the Home Affordable Refinancing Plan or HARP which provides access to low-cost refinancing for responsible homeowners suffering from falling home prices. Also, Home Affordable Modification Program or HAMP has permanently reduced monthly payments for fewer than one million home owners. Both programs still remain open.

There are no clear guidelines on how the new mortgage plan will be carried out or when it will be carried out.  But according to Senator Barbara Boxer, the new mortgage plan would provide a "dual benefit" to the home owners, Fannie Mae and Freddie Mac. Since fewer borrowers would fall delinquent while providing a boost to the economy.

If you want more information about the new mortgage plan, you may check out http://www.msnbc.msn.com/id/44340713/ns/business-real_estate/ for more details.

Permanent Fund Dividend.... Here I Come!!!

EVERYBODY is excited! It’s what everybody is talking about! HOW TO SPEND their UPCOMING PERMANENT FUND DIVIDEND CHECK! What do you plan to do with your $1281.00 check you will receive this October?  Some people are thinking about buying a new big flat screen TV or a new gadget, maybe even a vacation for the family.

In 1976, the State of Alaska voters pass a constitutional amendment to establish the Permanent Fund. The fund originates from surplus revenues gained from the development of Alaska's oil and gas reserves. It would invest at least 25% of proceeds from some mineral  (such as oil and gas) sales or royalties. The fund pays out an annual dividend to each Alaskan resident (must be a resident for at least 12 months) with the interest that it earns. The fund also invests in a wide variety of asset classes, including domestic stocks, US bonds, global bonds, real estate and private equity.

The PFD pay-out comes in or near October of each year. This year, the dividend is set for distribution on the 6^th of October 2011.  Here is a list of the annual individual pay-out in the past.

Year	Dividend Pay-out
2010	$1281.00
2009	$1305.00
2008	2069.5 + 1200 Alaska Resource Rebate
2007	1654.00
2006	1106.96
2005	845.76
2004	919.84
2003	845.76
2002	919.84
2001	1107.56

If you want to know the more about the dividend computation, you may click on http://www.pfd.state.ak.us/forms/2010Forms/2010DividendCalculation.pdf  for more details.

If you want to apply for a PFD, simply follow the steps below:

 -  Complete an online application at www.pfd.alaska.gov OR

 -  Complete a paper application AND an Adult Supplemental Schedule and submit them by March 1^st

-   Submit an original certified birth certificate, original passport, or naturalization papers. (photocopies or hospital certificates will not be accepted).

You can access your information at www.pfd.alaska.gov to check if you are eligible to receive an annual pay-out or dividend. It is important to check your current information, because sometimes eligibility changes.

Still unsure on how you will spend your PFD check? If you want to look further ahead and think about the future, combine a whole family’s dividends and you will be able to purchase something that will last longer  – like a down payment on a house in today’s market!!  Alaska Housing has first-homebuyer loans and if you add the dividends you will receive, you can buy a good home. And with low mortgage rates, buying your dream home is affordable than ever. If you want to take advantage of the current housing market, please don’t hesitate to contact me.

Take Advantage of the Historically Low Interest Rates!

On August 19 Freddie Mac released the results of its Primary Mortgage Market Survey, showing mortgage rates, fixed and adjustable, reaching all-time record lows. The 30-year fixed mortgage rate averaged at 4.15% (the lowest rate in 50 years), while the 15-year fixed averaged at 3.36%.

With the most affordable interest rate in 50 years, many home owners are taking advantage of the low mortgage rate environment. They have already began approaching their banks to refinance their loans.

According to Freddie Mac's reports, 34% of the borrowers have changed their mortgage length from 30 years to 20 and 15 years - it is the highest level or mortgage length shortening in 7 years!

Some financial experts argue that it is more beneficial to the home owners to take on a 30-year rate at low rates and invest the rest of their money in their retirement plans. However, home owners these days prefer to pay in shorter term because they just want to have a mortgage free life at an earlier time.

Buyers are also realizing that lower terms can literally save thousands, even tens of thousands of dollars in interest costs, while some borrowers who financed at historically low rates have been able to refinance at 15-year rates without raising their mortgage payments. Take note of the illustration below, with 2% increase in interest rates, it increases your monthly payments by $250. Just imagine, home much you can save in the long run if you take advantage of the current low interest rates.

Now is the time to take advantage of the all time low interest rates! If you need more information about the current mortgage rates, you may contact me.

Join the Alaska State Fair and Get a Chance to Win "One Republic" Concert Tickets

Every year, around 300,000 people gather around at the end of each summer for the Alaska State Fair held in late August to early September.  The event provides a setting for Alaska’s last blast of summer, a showcase of Alaska’s uniqueness and beauty.  This year, the Alaska State Fair will celebrate its 75^th birthday with the theme “75 Years and Growin”.  It will begin its 11 days of festivities on the 25^th of August and end on Labor Day, the 5^th of September.  The Alaska State Fair is for all ages (for the young or young at heart).  

There will be farm exhibits, carnival games, rodeo, concerts, contests, food and much much more. Contests will run from the 3^rd Annual Legendary Karaoke Contest to the Alaska’s Got Talent show, the Moose Calling competition and the Parent-Child Look-like Contest, there’s a competition for everyone at this year’s Alaska State Fair.  Visit the 16^th Alaska State Fair Cabbage Weigh-off for a look at some of the biggest and best cabbages in the state.  The concerts will include some big-name performers such as Colbie Caillat and One Republic and more! To win free tickets to the One Republic concert, click here!

The Daily Fair schedule will be as follows: (Click on the event, to get more information)

Thursday, August 25 - $2 Buck Thursday

Friday, August 26 – Kids’ Day

Saturday, August 27 - Family Day

Sunday, August 28 – Experience Alaska Day

Monday, August 29 – Healthy Living Day

Wednesday, August 31 - Senior Day

Thursday, September 1 – Alaska Grown Day

Friday, September 2 – Wellness Day

Saturday, September 3 – Mining Day

Sunday, September 4 – Alaska’s Native Cultures Day

Monday, September 5 – Alaska Airlines Day

This year’s Alaska State Fair will be held at 2075 Glenn Highway Palmer, Alaska. You can contact the fair offices at 907-745-4827 or visit  http://www.alaskastatefair.org for more information.  Admission ticket on weekdays is $9 and on the weekends is $11, seniors and children can get them for $5-$6 depending on the day. Concerts and shows range from $10 to $75 depending on the show.   Don’t miss this annual Alaska event! I guarantee you will have fun! See you there!