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Low Interest Rates Are Great - If You Can Access Them |
A low interest rate is the holy grail of
home loans.
The difference between a good rate and a
bad one
can influence some major financial choices
you
make, including the home you can buy.
Understandably, everyone wants to know
they have
the best rate available to them.
Interest rates have been sort of crazy lately,
so it's
easy to get excited about refinancing to a
lower rate.
Perhaps you heard the mom next to you at
your child's
gymnastics class bragging about her low
rate and
asking about yours. Like all things that seem
too good
to be true, they may not be - for you.
The now infamous "credit crunch" means
that banks
are keeping a tight fist with their money.
Mortgages
are not as easy to get as they used to be,
and those
who will not be able to revel in the
new low
rates include:
- Those with "jumbo" loans.
While rates fall for all types of mortgages,
they don't
fall as much for people with jumbo loans. A
jumbo
loan is anything more than $417,000, which
encompasses a lot of people in the Boston
area.
- People with a high loan-to-value
(LTV)
ratio.
An LTV is the percentage of
money
loaned against the appraised value
of the
property. For example, if you want to buy a
house
worth $150,000 and want a $130,000 loan,
the LTV is
$150,000/$130,000, which equals 87%. So if
your
appraised value has decreased but the
amount you
need for a loan has not, your LTV may no
longer be a
desirable one for the bank. Some banks
used to have
a 100% LTV (Remember what got us into
this whole
mess in the first place?). Today, banks are
typically looking for an LTV that does not
exceed
80%.
Buyers who have cash are in the best
situation, but
even they must have impeccable credit to
take
advantage of low rates. It's always good to
know your
rate and keep abreast of the mortgage
world, but the
advice of living within your means will never
go out of
style!
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January's Home Value Improver |
Lighting 101
Flipping the light switch when you walk into a
room is
so automatic, people even do it when the
electricity is
out. Ah, but lights are so much more!
Different types of
lighting serve different types of purposes.
Each room
has different lighting needs.
Kitchen
Of course, since there is where people
spend much of
their time and do a lot of work, good lighting
is very
important. You need a light over your
workspaces and
one under the countertops. Of course, one
over where
you eat is crucial, too.
Rule: Install one light per activity
area.
Living Room/Family Room
Table and floor lamps are great. Remember
that the
bottom of the lampshade should be at eye
level when
sitting. Place reading lamps so that they
shine over
your left shoulder. Of course, a ceiling fan
can help
with the temperature.
Rule: Be sure lamp sizes are in line with
your
furniture sizes.
Dining Room
A chandelier over the table is important, as
is some
small lamps on the sideboard for when you
want
some mood lighting. This is a great room for
a
dimmer switch, too.
Rule: A chandelier should be about 36
inches
from the table.
Bathroom
Recessed lights are good in general, but you
also
need something around the mirror. Next to
the mirror
is better than above it because of the way
lights above can cast shadows under your
eyes and nose.
Rule: Fluorescent lights are not good for
bathrooms since they tend to cast a
greenish light. No
one wants to look green.
Bedroom
Overhead lights are generally not
recommended in
master bedrooms, but can be beneficial with
a ceiling
fan. Sconces above the bed are nice too,
and reading
lamps are essential.
Rule: The base of the lampshade should
be 20
inches above the bed.
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With President Obama's Inauguration
Celebration this week, everyone seems to
be excited about change
and hopeful about the future, and
that's a good thing. But it's also
always good to stay grounded and focus on
what's right for you.
If it's time for a change in your financial
situation make sure to think it through, do
your homework and seek advice from the
experts.
Change can be good, as long as it makes
sense! Please feel free to contact me
anytime to talk about mortgage-related
changes you'd like to make!
Best regards,
Debbie Siegel
President
Westchester Mortgage
P.S. You're receiving this E-Newsletter because you have a prior relationship with me or with Westchester Mortgage. If I've sent this to you in error, or if you want to remove yourself from the list at any time, just click the "SafeUnsubscribe" link at the bottom of this e-mail.
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Click here for some tips on
how to choose a mortgage broker!
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