Posted by Laurie Randazzo on Thu, Jan 07, 2010 @ 08:47 AM
Yesterday I attended a seminar at the Theater Next Door offered by my company RE/MAX Leading Edge in Winchester, Ma. featuring Jack Cranfield's (Chicken Soup For The Soul) success principles. Cranfield is without a doubt one of my favorite inspirational speakers. It was a very worth while event!
Once again it was very clear to me that whether you are and agent, prospective agent, buyer or seller we all benefit from the power of RE/MAX Leading Edge and the extensive resources this company has to offer.
As we all kick off 2010 writing measurable goals to guide our course to success, think about Brad Inman's story |Ideas are a dime a dozen...it is all about the execution. Take 100% responsibility for your success in life & NO excuses! Just as Henry Ford once said, "If you think you can or you think you cant, you are probably right!" Go for it and good luck!!
Check out this timely article from Brad Inman | Good Ideas Are A Dime a Dozen
Posted by Laurie Randazzo on Tue, Sep 15, 2009 @ 11:17 AM
One of the most major life events is to get married. In addition to planning the wedding itself, you and your future spouse should also be planning your financial future beyond the party.
Make sure you are both able to reach a consensus on important financial issues:
- Will you combine all of your accounts or keep them separate?
- Who will be in charge of paying bills each month?
- Will you buy a house or look for an apartment to rent?
- How often should you plan on buying new cars, furniture, appliances, or other big ticket items?
- Will you buy with credit cards or save up first?
- How much of your own debt and your spouse's debt can you live with?
- Would you like to talk to someone about a budget?
- What is your investment strategy?
- What are your financial goals?
These may be tough topics of discussion, but clear conversations and compromise are often the best way to ease the financial stress many newlyweds face. Many of our clients are newlyweds and first time home buyers. We can provide you with the information and support necessary to make life after the honeymoon stress free! Call us today 781-729-6200.
Posted by Laurie Randazzo on Wed, Feb 18, 2009 @ 02:42 PM
If are a home buyer looking for the latest update on the 1st time buyer tax credit, you can download this chart. $8,000 Tax Credit
Posted by Laurie Randazzo on Wed, Sep 10, 2008 @ 02:48 AM
Price reduction alert: The list price of 6 Ardley Road, Winchester Ma is reduced to $549,000. We will hold an open house on September 14th 1-3pm. The property is a charming 4 bedroom single family cape with a large fenced yard walking distance to Lynch Elementary School, Winchester MA
If you or a friend/relative is interested in purchasing a home in Winchester, please call us 781-729-6200
Posted by Laurie Randazzo on Mon, Sep 08, 2008 @ 08:50 AM
Whether it's a mortgage, personal loans, credit cards or all of the above, more and
more people are drowning under the burden of their debt, and for those with
enough income to keep their heads above water, the only logical choice may seem
to be paying off their
debts as quickly as possible. But wait -- is that really the best
financial game plan? While it certainly feels good to be debt free, in some
extremely rare situations you may be better off simply maintaining your debts
(i.e. paying the minimum payments on your loan) and investing your spare cash. Can't decide
whether to invest your extra money or use it to pay off your loans? Read on for
some tips to help you make the choice.
Steps
- Start a
budget -- a spending plan. Before
you can even consider investing, you've got to make sure that you actually
have extra money. Reserve enough income to keep all your debts
current; getting behind on your debt payments can damage your credit and
cause you to incur fees that will quickly overwhelm the return on any
investment. Pay at least your minimum
payments on all your debts, on time, every time.
- Build
a rainy day fund
before investing. Things may be looking up now, but what if you lose your
job next month or you have a medical emergency?
Before you invest or make larger than necessary payments on your loans,
save up some money for an emergency fund. Many experts recommend that you
save enough to cover at least three months of your bare-bones expenses.
This number may vary, however, depending on your situation and your
personal preferences. This money should be in a safe, accessible account,
such as a money market fund, not a mutual fund (no guaranteed return over
short periods of time) or a CD (not accessible).
- Think
of debt
payments as an investment. When you
make a $100 payment on a loan with a 13% interest rate, your annual return
is 13%, or $13. Why? Because you avoid having to pay that extra $13 in the
future, which leaves you $13 more than you would have otherwise had.
- Prioritize your debts. Some
financial experts suggest putting your debts in order from those that
charge the highest interest rates (often credit cards) to those that
charge the lowest (typically mortgage payments). Others, like Dave Ramsey
(in his book Financial Peace Revisited), suggest listing them from
smallest to largest, paying off the smallest debts first while making
minimum payments on the rest. Then, as the smallest debt is paid off, the
amount that was being paid on it is rolled up onto the next highest debt,
added to that debt's minimum payment. This is called the "Debt
Snowball," and can give a tremendous sense of accomplishment and
encouragement to anyone with a large number of debts to pay off.
- Compare
the annual return on investments to the interest rates on
your debt. When examining an investment opportunity, compare its rate of
return to the interest rates on your debts. Suppose you're trying to
decide between paying off your mortgage early by paying an extra $100 per
month, or investing that $100 each month. If your auto loan's interest
rate is 6%, you can get a better return by investing that $100 in any
investment that yields more than 6%. If you're considering a bond that
pays 5%, however, you're better off paying the extra $100 on the loan.
Also ask yourself if you would borrow new money at the debt rate to invest
at the investment rate. If you wouldn't borrow new money, you should pay off
the debt before investing.
- Consider
the tax
implications. It's not enough to simply look at the interest rate you'll
receive on an investment or pay on a debt. You also need to consider
whether the interest on your investment is taxable and whether the
interest on your debt is tax-deductible. Taxes can complicate things a
good deal, so unless you are confident in your ability to navigate the
maze of tax laws and do your own calculations, you may want to get expert
help from a financial advisor. Consider the following U.S.-based examples.
- Mortgage
interest payments are usually tax deductible, so the effective
interest rate you pay on your mortgage may be substantially lower than
the stated rate.
- Ordinary
investments are generally subject to income taxes, which can dramatically
reduce the return.
- Tax-deferred
investments, however, such as 401(k)
plans and traditional IRAs, lower your taxable income, and
thus the effective return may be higher than the stated rate.
- Pay
off debts that have higher interest
rates than the return you can get on investments. There's a good chance
you can find a relatively safe investment that would pay more than the
interest on a low-rate mortgage. It's quite a bit harder, however, to find
an investment that offers a better return than paying off your 21% credit
card balance without an amazing degree of risk, (unless someone's paying you to
invest -- see the tip below). Thus, with your prioritized list of debts in
front of you, use your extra money to pay off those with the highest
interest rate first. Another strategy is to pay off any small balances
first (even if they have low interest rates) which frees up cash flow for
investing or for paying off your other debts.
- Invest
only when you can reasonably expect returns that
significantly exceed the interest on your debts. Eventually you'll have
paid off your high-interest obligations and likely be able to find acceptably
safe investments that will provide a better return on your money than
paying extra on your lower-rate debts. At this point, it generally makes
sense to invest, rather than pay anything over the minimum payments on
your loans.
- Consider
the risk. Unlike the guaranteed "return" you get by paying off
debts, investments carry risk. Low risk investments, such as
interest-bearing savings accounts, CDs, and guaranteed government bonds, are pretty safe,
but they're unlikely to exceed the returns you can get by paying off even
low-interest debts. A wide variety of other investments, including stocks
and mutual funds, may provide returns that beat even credit card
interest rates, but those returns are not certain, and you could even
lose your principal. In general, the higher the advertised rate of
return, the higher the risk. You have to consider your own risk
tolerance when considering an investment.
- Think
about your future financial obligations. When you apply for a mortgage or
other forms of credit, your interest rate (the cost of the money you want
to borrow) will depend largely on your credit rating. One of the main
factors that determines your credit rating is the amount of credit you're
using relative to that available to you. Thus in some cases, it may
benefit you to pay down debt--even if it looks like your money can earn a
better return in a relatively safe investment--because your improved
credit profile will save you money on a mortgage.
Warnings
- Investments
carry risk, and choosing to use your money to invest rather than pay off
debts more quickly is inherently risky. The amount of risk depends on the
investment, of course, so you need to consider each investment opportunity
carefully. Remember also, however, that neglecting your retirement savings
(even if doing so to pay off debts early) is also risky.
- Most
of those internet calculators assume your investments will go well,
and don't take into account the risk involved. If the investment doesn't go
well, you may find yourself miserably paying off the debts while having
little or nothing to show for your "savings".
- This
article is intended as a general guide only and is not intended to replace
professional financial or legal advice.
Article provided by wikiHow,
a collaborative writing project to build the world's largest, highest quality
how-to manual. Please edit this article and find author credits at the original
wikiHow article on How to Decide
Whether to Invest or Pay off Debt. All content on wikiHow can be
shared under a Creative Commons
license.
Posted by Laurie Randazzo on Wed, Aug 20, 2008 @ 08:23 PM
The Housing and Economic Recovery Act of 2008 authorizes a $7,500 tax
credit for qualified first-time home buyers purchasing homes on or
after April 9, 2008 and before July 1, 2009.
1. The tax credit is available for first-time home buyers only.
2. The maximum credit amount is $7,500.
3. The credit is available for homes purchased on or after April 9, 2008 and
before July 1, 2009.
4. Single taxpayers with incomes up to $75,000 and married couples with incomes
up to $150,000 qualify for the full tax credit.
5. The tax credit works like an interest-free loan and must be repaid over a
15-year period.
For more information, contact Bill (Real Estate) Caci or Laurie Randazzo @
781-729-6200
Posted by Laurie Randazzo on Sat, Aug 02, 2008 @ 10:34 AM
How much home
can you afford? How do you even begin to find the answer to that question?
You’ve probably heard terms like “pre approval” and “pre-qualification” tossed
around, but do you understand the critical difference between those two? If
your answer is “no” then please read on to avoid major disappointment when you
make your offer.
“Pre-qualification” is a fine place to start, but if you’re really serious
about the time and money you’re going to invest in purchasing a home, you’ll
really want to focus on “pre-approval”. Approval, and not just qualification,
is secured when you complete and submit a loan application, along with the
appropriate documentation and fees.
The lender will review your application and paperwork, and will notify you of
just how much financing you can secure. Only then will you have the confidence
to make your home choice and make your offer.
A pre-qualification, on the other hand, is a more informal, and only an
estimate of the funds for when you might qualify after applying for a loan. You
might make an offer with pre-qualification in hand, but it’s no guarantee that
your loan application will be accepted.
The seller’s representative will have educated the seller about this critical
difference, so make them an offer they can’t refuse! Pre-approval puts you in
the driver’s seat, so get ready to move!
Posted by Laurie Randazzo on Mon, Jun 30, 2008 @ 02:44 PM
First-Time Home Buyer Tax Credit for Closing Will Move Market
WASHINGTON, May 29, 2009
Consumers across the country can now take advantage of a Federal Housing Administration program to allow qualified home buyers to apply the $8,000 tax credit when purchasing a home. FHA will now permit its lenders to provide a short-term bridge loan that will let qualified home buyers use the tax credit to either make a larger downpayment above the FHA required 3.5 percent, cover closing costs, or buy down their interest rate.
“A true housing recovery depends on buyers returning to the market and reducing inventory,” said National Association of Realtors® President Charles McMillan, a broker with Coldwell Banker Residential Brokerage in Dallas-Fort Worth. “Since many of the homes available are lower priced starter homes, the ability for individuals to use the tax credit at closing should have a meaningful impact on home sales and values and will allow thousands of families to achieve the dream of homeownership.”
Shaun Donovan, secretary of the Department of Housing and Urban Development, announced the change today. In an address to several thousand Realtors® gathered two weeks ago at NAR’s Real Estate Summit: Advancing the U.S. Economy, Donovan announced HUD’s plan to offer the tax credit as downpayment assistance. Donovan detailed the modifications to that original proposal and announcement.
“We all want to enable FHA consumers to access the home buyer tax credit funds when they close on their home loans,” Donovan said. According to Donovan, the FHA’s approved lenders will be permitted to “monetize” the tax credit through short-term bridge loans allowing eligible home buyers to access the funds immediately at the closing table.
NAR has supported monetization of the tax credit, which was part of an Obama administration housing stimulus plan enacted earlier in the year. NAR petitioned HUD to allow home buyers to use the $8,000 tax credit to help them cover downpayment or closing costs to bring new home buyers to the market and stimulate home sales.
“We think this is a good program; our members have been getting many inquiries from potential buyers about it,” McMillan said. “NAR is pleased that this enhancement has been made to the administration’s housing recovery program. As we have heard before, there can be no economic recovery without a housing recovery. With an abundance of inventory, reduced home prices, historically low interest rates and now the availability of the tax credit at closing, we expect to see the housing market further stabilize and improve.
”
# # #
SOURCE : NAR