Diana Walton Buyer's Blog

Turn your yard into the ultimate neighborhood party spot

When Rika Houston knocks on doors to invite neighbors over for an impromptu screening, she's never short of takers. Located in the front yard of the Los Angeles home she shares with her husband, architect Brian Ten, the cinema is unlike any other in town. Sinking into the cushy sofa with lanterns lit overhead, guests watch "The Birds" or "The Sound of Music" on a screen nearly as big as the garage wall.

"In the summer, every Friday is movie night," Houston says.

With the help of landscape designer Mark Tessier, Ten overhauled their yard to create a gathering spot for the family, which includes 9-year-old daughter Maya and teenage sons Cole and Taro. But as movie night took off, the couple has been happy to see how it has transformed the neighborhood, too.

"It's one thing to bump into someone on the street and share a few words," Ten says. "With this outdoor theater, we've gotten to know our neighbors much better."
Source:msn

Diana Walton

Licensed Real Estate Consultant

Keller Williams Realty

Certified Negotiation Expert (CNE)

281.923.1118

Your New Money Checklist

Rebalance your portfolio.

Making sure that your asset allocation is in line with your investment goals is an essential part of managing a portfolio. The beginning of the year is an opportune time to do it, and the process may take only a few minutes.

Track your spending.

Whether you use a software program (such as Quicken) or pen and paper, you need to know where your money is going. Break your expenses down into categories—like utilities, insurance, entertainment, and clothing—to identify where you can scale back.

Set short- and long-term financial goals.

Whether you want to be debt-free in 10 years or own a house in five, you’re more inclined to save if you have specific goals. So write them down and determine how much money you’ll need to save each month to reach them.

Pay yourself first.

Create a regular savings plan. Set up direct deposit from your paycheck into a savings account. You won’t miss money you never see.

Enroll in automatic payment programs for bills when you can.

You’ll avoid costly missed payments, late fees, and negative marks on your credit score.

Work toward being—and staying—debt-free.

Start by paying down bad debts, such as high-interest credit-card bills and non–tax-deductible debt.

Boost retirement savings.

If you can’t afford to max out your employer-sponsored 401(k) or SEP plan this year, try to contribute enough to receive the full company match. If you don’t have a retirement plan at work, fund a traditional IRA or a Roth IRA and arrange for contributions to be made automatically from your checking or savings account.

Review insurance policies.

Review all your policies—home owner’s, renter’s, auto, disability, and life insurance. Are the limits adequate? Should the deductibles be raised? Is there a less expensive policy with similar coverage? Are you taking advantage of all the discounts offered to you by your insurance providers?

Check your credit report.

Get a free copy of your credit report (the numerical summary of how much you owe and how promptly you pay your bills, which is examined by everyone from lenders to landlords) from annualcreditreport.com.

Make (or update) your will.

This ensures that your personal belongings, assets, and investments go to the beneficiaries you choose.

Ramp up your emergency fund.

Aim to sock away 6 to 12 months’ worth of living expenses so that in the event of an emergency (a job loss, unexpected medical bills), you won’t have to sell assets or rely on credit cards.
Source: RS

Diana Walton

Licensed Real Estate Consultant

Keller Williams Realty

Certified Negotiation Expert (CNE)

281.923.1118

Professional-grade appliances often take up more space than their standard counterparts, but they can provide extras that — if you really love cooking — make them worthwhile. A pro-grade refrigerator, for instance, allows you to keep plenty of fresh produce and cold beverages on hand. Most models also give you the ability to set separate temperatures for their various compartments.

Drawer-style dishwashers, especially when you install two, can make cleanup more efficient. Similarly, many home chefs have begun to install multiple ovens in their homes; having standard, convection and microwave ovens ensures you'll always have the right tool for any task. Many of the most well-appointed kitchens feature built-in, integrated appliances.

"While stainless steel finishes remain popular, especially in high-end professional-style appliances, the ability to integrate, or 'hide,' your appliances is very popular," Petrie noted.
Source Bloomberg

Diana Walton

Licensed Real Estate Consultant

Keller Williams Realty

Certified Negotiation Expert (CNE)

281.923.1118

Homeowners who regularly cook and entertain need kitchen spaces that are functional, efficient and beautiful. Even if your culinary creations are more often inspired by Chef Boyardee than Chef Gordon Ramsey, the right layout, surfaces, sinks, storage and appliances can make your kitchen a star.

The terms "chef's kitchen" and "gourmet kitchen" are tossed around a lot these days. Within the real estate world, they generally indicate high-quality finishes and professional-grade appliances. In a broader sense, they indicate the use of features — such as open storage and easy-clean surfaces — that chefs use in their professional kitchens. Incorporating some of these professional-style amenities will go a long way toward making your new or remodeled kitchen a place where culinary magic happens.

Want to speed through prep and cooking without spreading germs throughout the kitchen? Touchless faucets have sensors that allow you to turn them on or off with a wave of your hand. A number of manufacturers offer these high-tech faucets; check out Kohler's Sensate or Moen's MotionSense to see a sampling of what's available.

If you're serious about cleanup, you might want to install a restaurant-style sprayer. These faucets, priced between $600 and $1,200, generally have a high-arc spout with a high-pressure pullout nozzle to blast food off plates. Traditional commercial faucets are too large for most residential situations, but some manufacturers, such as Blanco have created smaller versions of these pro-style sprayers for use in home kitchens.

Of course, you'll need a pro-style sink to go with your pro-style faucet. Deep, wide bowls with flat sides and slightly curved corners provide maximum usable space and easy cleanup.
Source Bloomberg

Diana Walton Licensed Real Estate Consultant

Keller Williams Realty Certified Negotiation Expert (CNE) 281.923.1118

Fixed mortgage rates fell for the sixth straight week, with the benchmark 30-year fixed mortgage rate retreating to a four-month low of 3.57%, according to Bankrate.com. The average 30-year fixed mortgage has an average of 0.31 discount and origination points.

The news was even better on the average 15-year fixed mortgage, which set a new record low of 2.8%. The larger jumbo 30-year fixed mortgage rate held at 3.98%.

Adjustable rate mortgages were mostly lower, with the 5-year ARM settling at a new low of 2.65%, the 7-year ARM holding at 2.87%, and the 10-year ARM dipping to a three-month low of 3.21%.

Mortgage rates continue to trend lower as uneven economic data has raised concerns about another economic slowdown. The accompanying stock market volatility also has been good for mortgage rates by increasing demand for both government- and mortgage-backed bonds, to which mortgage rates are closely related.

The last time mortgage rates were above 5% was April 2011. At the time, the average 30-year fixed rate was 5.07%, meaning a $200,000 loan would have carried a monthly payment of $1,082.22. With the average rate currently at 3.57%, the monthly payment for the same size loan would be $905.92, a difference of $176 per month for anyone refinancing now.
Source: House Logic

Recent Mortgage Rates

30-year fixed: 3.57% — down from 3.61% last week (avg. points: 0.31)

15-year fixed: 2.80% — down from 2.85% last week (avg. points: 0.28)

5/1 ARM: 2.65% — down from 2.66% last week (avg. points: 0.26)

 Diana Walton

Licensed Real Estate Consultant

Keller Williams Realty

Certified Negotiation Expert (CNE)
Buy-Sell or Lease

281.923.1118

It’s that age-old conundrum: You pay for homeowners insurance to protect yourself from financial ruin, yet filing a claim when disaster does strike puts you at risk of seeing your annual premiums increase by hundreds of dollars. Worse, either a major claim or too many claims in a given period, no matter how legitimate, could lead to losing your house’s coverage altogether.

While it can be a fine calculation to make, every time there’s damage to your property or an accident on it, you need to consider carefully whether it makes financial sense to file a claim or absorb the losses yourself. The fates of your homeowners insurance and your bank account hang in the balance. Here’s how to do the fuzzy math.

Be mindful of deductibles, liability

Most homeowners insurance policies state that any time you suffer damage to your property—whether it’s covered under the policy or not—you’re supposed to make a claim in a timely manner, says former insurance claims adjuster Jonathan G. Stein, who’s now a consumer attorney in Elk Grove, Calif. What’s timely? Typically within two weeks, possibly as long as 30 days, says Stein, except for theft claims, which insurers expect you to report within days. That certainly works in the insurer’s favor, but not necessarily in yours. Read your policy carefully, and then get repair estimates to determine if the cost to fix the problem exceeds your deductible, the amount you pay out of pocket.

Though there are a few exceptions (more on those below), always making a claim for damage that exceeds your deductible is a good rule to follow, says Jerry Oshinsky, a partner at Jenner & Block in Los Angeles who has represented homeowners in litigation against insurers. In recent years the average claim has totaled $7,368; the average annual premium for homeowners insurance, $804.

In addition, you should always make a claim—no matter your deductible or the size of the claim—when someone is injured on your property. Personal injury claims are the most likely to explode into large-dollar claims, says Steve Rivers, an independent broker and vice president of Hometown Insurance Agency in Smithtown, N.Y.

Rivers once received a call from a homeowner who’d hired a contractor to install siding on her house. One of the contractor’s workers fell off a ladder and died. Rivers advised the homeowner to file a claim so she was protected if the worker’s family sued, even though she’d done nothing wrong.

Some claims are worth skipping

Think twice about filing certain claims, even if repair costs exceed deductible levels. Stein, the California attorney, thinks homeowners shouldn’t report water damage under $10,000 because some insurers will give notice that they’ll be canceling your policy at the time of renewal due to concerns about mold. Rivers, however, says that’s not always the case. Two of his policyholders who had no previous claims filed because of water damage, and both were covered with no subsequent increases in premiums.

For none water damage, Stein recommends not reporting claims under $3,000. His reasoning? Say you have a $500 deductible and you submit a $2,500 claim. If your premiums increase $500 a year for three years, you’re paying the insurer an additional $1,500 to recover only $500. Your claim will also be recorded in the CLUE database—CLUE is short for Comprehensive Loss Underwriting Exchange—which virtually all insurers use. Even if you switch to a new carrier, you can’t escape your old claims, which remain in CLUE for seven years.

Filing multiple claims, say two or three over a span of two to three years, puts you at risk for nonrenewal, says Rivers. It’ll also make it harder to get affordable coverage in the future. Each insurer has its own standards for determining when to drop a homeowner. Rivers says some might allow one weather-related claim and one nonweather-related claim before cutting ties. Others may boot you after a single major claim. What if you don’t have the cash to pay for damage without filing a claim? Stein says with a short-term loan from your bank or credit union, you’ll probably end up paying less in interest than you’d pay in additional annual premiums.

Dealing with denial

Insurers sometimes decline to cover claims. In most states, they’re required to send you a copy of your policy and identify the language they’re relying on in the denial. Read that carefully because your insurer may be misreading or improperly stretching the policy language.

Stein handled a case in which the insurer denied coverage for a dog bite, even though such an occurrence was specifically covered. The adjuster didn’t bother to read the endorsements. He’s also seen insurers deny coverage for water damage from the failure of water pipes on the basis of exclusions for property wear and tear. While the cost to replace worn pipes isn’t covered under most policies, the damage they cause when they burst is included.

If you believe your insurer is being stingy, argue your case with the adjuster and then the agent, advises Rivers, the insurance broker in New York. A complaint to your state’s department of insurance may also help. You may eventually need to consult an attorney if the extent of your losses warrants a legal fight.
Source House Logic

 Diana Walton

Licensed Real Estate Consultant

Keller Williams Realty

Certified Negotiation Expert (CNE)
Sell Your Home In 30-60 Days

281.923.1118

An ARM begins with a low introductory rate that remains fixed for a specified period. Upon expiration, the interest rate periodically adjusts based on an underlying index, which goes up or down. This contrasts sharply with a fixed-rate mortgage (FRM), where the monthly payment remains consistent.

The chief advantage of an ARM is that it allows you to save money in the early years. However, it can become dangerous because historically, declining rates don’t last more than approximately five years. Therefore, payments on a 15- or 30-year ARM will generally increase over time. A plan to refinance when the introductory period ends is a terrific idea—if you can pull it off. But if you can’t, and are unable to make increased monthly payments, you may lose your home.

This unpredictability makes an ARM inherently riskier than its fixed-rate counterpart. With mortgage rates at 7.5% or less for 185 of the past 210 years, it’s a reasonable risk—except if you’re living through a period like the late 1970s and early 1980s, when interest rates hit 17%.
Source:Hlogic

Diana Walton

Licensed Real Estate Consultant

Keller Williams Realty

Certified Negotiation Expert (CNE)

281.923.1118

Kishia S. Ward wasn't looking for the home of her dreams when she bought her two-bedroom, 2½-bath townhouse. The 25-year-old student and former business analyst wanted a place "not so much to live in forever but as an investment property, something temporary that, later on when I get married and have a family, I can rent out

Single female homebuyers such as Ward are a powerhouse group in the real-estate market. In 2011, when Ward bought her home, three of her female friends, also singles in their 20s, also purchased homes. Single women — a group that includes the divorced, never married and widowed — make roughly one in five home purchases annually, according to the National Association of Realtors, second only to married couples, who are about two-thirds of the market.

It wasn't always this way. In the 1970s, "it was very difficult for a single woman to get a credit card, much less a mortgage," says Walter Molony, spokesman for the NAR. 

In 1981, when the NAR started watching, single women and single men each made about 10% of home purchases. Purchases by single men have stayed steady. Single women, however, pulled ahead in the late ’80s, when women grew as a presence in the workforce and social change put pressure on lenders.

Single women's market share reached 20% in 1985 and hovered there until recession and tight credit pulled it down to 16% in 2012. Unmarried couples make 8% of purchases
Source MSN

Diana Walton
Licensed Real Estate Consultant
Certified Negotiation Expert (CNE)
Keller Williams Realty
281.923.1118

For many homebuyers, establishing credit came naturally once they began working, applied for a credit card, took out a car loan or paid back student loans. But what about potential homebuyers who don't have a credit score, either because they are averse to credit cards or have yet to build up a substantive credit history? Can they still apply for a mortgage?

The answer is yes, but "it's exceedingly difficult to obtain a mortgage without a credit score," says Tim Ross, president and CEO of Ross Mortgage Corp. in Royal Oak, Mich. "Lenders use automated underwriting systems that base a loan decision on certain criteria, including a credit score. But there are some nontraditional sources that can be used for credit verification."

Mortgage lenders typically require a credit score of at least 620 or 640 to even consider an applicant for a loan. Whether you prefer not to use credit cards, are new to this country or are simply a younger borrower who hasn't built up enough credit history, there are some alternative sources that mortgage lenders can use to determine your credit risk.

While most lenders require three or more sources of credit, Clint Madison, a senior mortgage banker with Envoy Mortgage in Walnut Creek, Calif., says, "I've worked with borrowers who have a slim credit file and been able to get them approved for a loan. The first thing we look for would be 12 to 24 months of canceled checks or verification from a landlord of on-time rent payments."

Alternative sources of credit
Here are several other items that can be used for nontraditional credit verification, Ross says:

·         Utility bills for gas, electricity or water, as long as they are paid separately from your monthly rent.

·         Phone and cable bills.

·         Car insurance, renters insurance, life insurance or medical insurance payments, if they are not paid by payroll deduction.

·         Child care or school tuition payments.

The more evidence you can provide that indicates a history of on-time payments, the greater your chances of qualifying.
Source MSN

Diana Walton
Licensed Real Estate Consultant
Certified Negotiation Expert (CNE)
Keller Williams Realty

Deducting mortgage interest is a great tax benefit that can make home ownership more affordable. Your first mortgage isn’t the only loan that qualifies, either. In many cases, you can also deduct interest on home equity loans, second mortgages, and home equity lines of credit, or HELOCs.

If you want to deduct all of your mortgage interest, there are limits on both how much money you can borrow and on what you do with the money you get. You also need to itemize your return to reap the benefits of these deductions. Calculations can be complicated, so consult a tax adviser.

Know your loan limits

A good place to check out what you can deduct before you borrow is the chart on page 3 of IRS Publication 936. It’ll walk you through the requirements you must meet to deduct all of your home loan interest. It’s an hour well spent.

The first hurdle you’ll run into is the total amount of your loan or loans. In general, individuals and couples filing jointly can deduct the interest on up to $1 million ($500,000 if you’re married and filing separately) in combined home loans, as long as the money was used for acquisition costs, that is the cost to buy, build, or substantially improve a home, explains Scott O’Sullivan, a certified public accountant with Margolin, Winer & Evens in Garden City, N.Y. Any interest paid on loan amounts above the $1 million threshold isn’t deductible.

The same $1 million limit applies whether you have one home or two. Buying a vacation home doesn’t double your loan limits. And two homes is the max; you can’t deduct a mortgage for a third home. If you have a mortgage you took out before Oct. 13, 1987, you have fewer restrictions on claiming a full deduction. The calculations for “grandfathered debt” can get complex, so get help from a tax professional or refer to IRS Publication 936.

Whatever you do, don’t forget that you can also deduct the points and fees associated with a first or second mortgage when you initially buy your home, says Jeff Rattiner, a CPA with JR Financial Group in Centennial, Colo. If you refinance the same house, you have to deduct those costs over the entire term of the loan. If you refinance again, you can deduct all the costs from the earlier refi in the year you take out the new loan.

Spend loan proceeds wisely

The other limitation on how much you can borrow and still get your deduction comes into play when you take out a home equity loan or HELOC that you don’t use to buy, build, or improve your home. In that case, you can deduct the interest you pay only on the first $100,000 ($50,000 if married filing separately). This loan limit also applies in a so-called cash-out refi, in which you refinance and take out part of the equity you’ve built up as cash, says John R. Lieberman, a CPA with Perelson Weiner in New York City.

That means if you decide to take out a $115,000 home equity loan to buy that Porsche, you can deduct the interest on the first $100,000 but not on the $15,000 that exceeds the limit. Use the same $115,000 to add a new bedroom, however, and the full amount is allowable under the $1 million cap. Keep in mind, though, that the $115,000 gets added into the pot of whatever else you owe on your other home loans. In many cases, points and loan origination costs for HELOCs are deductible.

Consider this simplified scenario: You borrow $250,000 against your home at 8% interest. That means you’ll pay $20,000 in interest the first year. Spend the $250,000 on home improvements, and all of the interest is deductible. Spend $150,000 on improvements and $100,000 on your kids’ college tuition, and all the interest is still deductible.

But spend $100,000 on improvements and $150,000 on tuition, and the improvement outlays are deductible, though $50,000 of the tuition expense isn’t. That’ll cost you $4,000 in interest deductions. Preserve the $4,000 deduction by coming up with the extra money for tuition from another source, perhaps a low-interest student loan or by borrowing from a retirement plan. For someone in a 25% bracket, a $4,000 deduction lowers taxes by $1,000, plus applicable state income taxes.

Beware the dreaded AMT

Even if you’ve followed all the loan limit rules, you can still get stuck paying tax on mortgage interest. How come? It’s all thanks to the Alternative Minimum Tax. Congress created the AMT, which limits or eliminates many deductions, as a way to keep the wealthy from dodging their fair share of taxes.

Calculating the AMT can be complex, but if you make more than $75,000 and have several kids or other deductions, you might well be subject to it. Problem is, if you fall into the AMT group, you may not be able to deduct interest on a home equity loan, even if the loan falls within the $1 million/$100,000 limit. If you’re subject to the AMT and borrow money against the value of your home, you’ll have to use it to buy, build, or improve your place, or you may not have a chance to deduct the interest, says Rattiner, the Colorado CPA.

This article provides general information about tax laws and consequences, but shouldn’t be relied upon as tax or legal advice applicable to particular transactions or circumstances. Consult a tax professional for such advice.

Diana Walton is a Licensed Real Estate Consultant
Certified Negotiation Expert (CNE)
Keller Williams
281.923.1118
Houston, TX