Reverse mortgages designed to help “house rich, cash poor” seniors meet their day-to-day expenses have gained popularity. Equity is taken out of the home, so debt increases and equity diminishes over time, (unless the property value increases and offsets this use of equity).

Many lenders offer reverse mortgages, and most are set up so that there is no monthly payment as long as the owner or co-owner(s) reside in the home. There are no minimum income requirements, and most plans allow the owner to retain title to the property until they have lived in a different permanent residence for at least 12 full months, sell the property, die, or the end of the loan term is reached.

The Home Equity Conversion Mortgage (HECM) is the only type of reverse mortgage insured by the Federal Housing Administration (FHA). Even if the original loan on the home was not an FHA loan, the reverse mortgage can be.

Seniors should first consider all their options and take a realistic look at monthly expenses. The AARP warns not to take too big of a chunk out of home equity, as this may affect the ability to collect Social Security Income (SSI). As an alternative, the retired home owner can consider downsizing to a smaller dwelling, or relocating to a less expensive neighborhood. Visit http://www.aarp.org for more information.

The City of Atlanta Office of Cultural Affairs presents the 2007
Atlanta Jazz Festival. This month long celebration will commemorate
30 years of presenting the best of jazz.

The Atlanta Jazz Festival is held in May, and is a 31-day schedule of events that features internationally renowned jazz artists and activities throughout the Metro Atlanta area. Culminating during Memorial Day weekend, May 26 - 28, the 3-day festival will feature show-stopping performances at Piedmont Park.

The Festival is produced by the City of Atlanta Office of Cultural Affairs and a majority of events are FREE and open to the public.

The Festival is regarded as one of the Country’s largest free jazz festivals and according to Mayor Shirley Franklin is “one of the city’s proudest traditions.” The Atlanta Jazz Festival provides the City with an opportunity to unify Atlanta’s diverse population, to celebrate Atlanta’s rich cultural heritage, and to promote tourism.

Inman Park Festival 2007

The 36th Annual Inman Park Spring Festival and Tour of Homes will take place Saturday and Sunday, April 28 and 29, 2007. The festival is multi-faceted, featuring the fabled Tour of Homes, an Arts & Crafts juried show, a Street Market including Antiques, a Dance Festival and continuous entertainment both days!

For more information, please call the Festival hotline at (770) 242-4895.

The 2007 Atlanta Dogwood Festival will take place April 13-April 15. On Friday April 13th the festival will be open from Noon to 9:30 p.m., on Saturday April 14th the festival will be open from 10 a.m. to 9:30 p.m., and on Sunday April 15th, the festival will be open from Noon to 8 p.m. The Atlanta Dogwood Festival takes place in Piedmont Park in the heart of Midtown Atlanta.

Luxury is an unusual word. On one hand, its meaning is quite positive. Conjuring up thoughts of comfort and ease, it’s a designation that signifies the highest in quality. But it’s also a word that stirs up feelings of guilt, mostly due to the notion that ultimately, “luxury” is about frivolous spending.

The problem here is two-fold. For starters, when something is considered to be a luxury, it is simultaneously tagged as being “non-essential”, perhaps even excessive. Secondly, many of us tend to devalue our personal comfort, dismissing it as a side effect of over-indulgence.

If this sounds familiar, then we have great news for you. Believe it or not there is a way to fuse luxury with necessity, creating a divine experience as well as a logical option. If you are a homeowner who’s looking for a little more luxury but just can’t justify spending the money, we’ve got two words for you – bathroom remodel.

The Beauty of a Bathroom
You can live without a theater room or a home office, but any house worth buying must have at least one bathroom. This may seem obvious, but take a minute to think about it. Aside from the kitchen, there is no other room that’s more utilitarian. The bathroom actually has multiple uses, possibly making it the most necessary room in the house.

The bathroom enables you to start your morning with a hot shower. At the same time, it allows you to refresh yourself at the end of a long day with a warm bath. We wash our hands, comb our hair, shave, brush our teeth, bathe our children, put on make-up, jump on the scale, and fine-tune our appearance in the bathroom.

But above all, the bathroom is a place where everyone can relax. Simply put, there is no other room within your home that allows for more personal privacy. It promotes true peace and quiet via the ability to lock a door and have no questions asked.

The indulgent reasons for creating a luxurious bathroom are fairly apparent. After all, who wouldn’t enjoy watching a flat screen TV while relaxing in their Jacuzzi tub? But here’s where the idea becomes practical. In terms of increasing your home’s resale value, there aren’t many projects that rank higher than a bathroom remodel.

Dollars and Sense
According to remodeling expert, Dan Fritschen, author of Remodel or Move? Make the Right Decision, there have been significant drops recently in the cost of both labor and construction materials. In other words, remodeling and upgrading your home has become quite affordable.

Many homeowners are utilizing these price drops to their benefit and are moving forward with their desired projects. The next step is to choose how to conduct the remodel from the three options available. The first option is to hire a contractor who does all of the work involved. Provided a qualified individual has been retained to perform the work, this is the easiest method for the homeowner. It is, however, going to be a more expensive route.

Method number two involves homeowners doing the remodel themselves. This is potentially the most cost-effective method, but it requires personal skill, not to mention elbow grease. It also carries some risk in that there’s no financial safety net if the job gets botched.

The third method is to share the work with a contractor. This involves figuring out what jobs you can do and which materials you can purchase, leaving the remainder to a skilled professional. This method does save money, but it requires good communication and a working relationship between you and the contractor.

In terms of remodeling a home’s bathroom, the returns can be staggering. Some studies indicate a national average return of 90% (upon sale of the home) for mid-range bathroom remodels. In cases where a bathroom has been added to the home, the number is closer to 86%.

While the amount of your return depends upon your local economy, as well as the state of the housing market when you sell, it’s very unlikely you would take a loss on a bathroom remodel. Some studies show an average return of 65% in stagnant markets and as high as 109% in boom markets!

Think about what this means. Depending on how long you decide to stay in your home, you have the ability not only to upgrade your way of life, but also to break even financially. In some cases you can actually turn a profit, but timing is everything. The goal is to remain in the home long enough to enjoy the upgrade but not so long as to warrant another remodel.

The Options are Endless
When it comes to the particular upgrades for your bathroom, the options for luxury and function are many. There are two main factors to consider: what specific upgrades will enhance your life, and how much money can you afford to spend? The following are just a few ideas of awesome upgrades that also function as sound investments:

Make It Bigger
A major trend is to expand the size of the master bathroom. Adding space to this room is a wonderful luxury as well as a potentially huge selling point. An augmented master bath allows you, as well as any potential buyers, the ability to make other additions.

Build for Two
One of the major issues for homeowners with only one bathroom, or couples sharing a master bath, is the inability for two people to use one bathroom simultaneously. If size permits, this problem can be alleviated with upgrades, like a double sink, a separate shower and tub, and a short wall to enclose the toilet area.

A Designer Touch
From tubs and toilets to fixtures and flooring, there is literally no end to the combinations of great looks. These types of improvements are relatively inexpensive in comparison to the dramatic upgrade they give to the look and feel of your bathroom.

A minimalist retro look, characterized by a pedestal sink and a freestanding tub, has been popular for some time. Nowadays, however, it’s not uncommon for homeowners to turn their bathroom into a Zen spa or even give it the look of a 5-star hotel bathroom, complete with a sunken or raised tub.

Old counter tops can be replaced with granite or marble, and vinyl flooring can be upgraded to tile. Walls can not only be repainted, but they can be painted with murals. It’s important to remember that just like other rooms in your home, the bathroom can be decorated to reflect the look you’re trying to achieve.

The Spa Experience
If luxury is what you’re looking for, you may want to think about an oversized tub, either sunken or raised, with Jacuzzi capability. State-of-the-art showerheads can also be installed, giving you options like receiving a water massage or bathing under a rainfall. Tile floors, towel racks, and toilet seats with built-in heating elements can bring added warmth during the colder months. And don’t forget the fog-free mirrors. This addition allows you to get the bathroom as steamy as you want without having to wipe down the mirrors.

When it comes to updating the look and functionality of your bathroom, the sky is the limit. You could invest very little time and money by merely repainting the walls, changing out your fixtures, and doing a little decorating. You could also pull out all the stops and completely remodel an existing bathroom or even add one on. The bottom line is that a great bathroom is something you will enjoy for as long as you own your home. It may also add to the home’s overall value, as well as cache.

If you’re looking for a contractor to update your bathroom, we suggest obtaining referrals. Professionals like loan originators and real estate agents are a great place to start. In addition, it’s always wise to screen potential contractors through the Better Business Bureau by conducting a search at www.BBB.org.

You can also utilize the expertise of remodeling guru, Dan Fritschen. Aside from being a published author, Dan has two websites dedicated to the subject of remodeling. By logging on to www.remodelormove.com, you can use Dan’s calculator to figure out whether you’d be better off remodeling your existing home or purchasing a new one. His website, www.remodelestimates.com, is a great resource for obtaining a free estimate on your project of choice, along with lots of helpful advice.

Good luck and remember - luxury doesn’t have to be frivolous.

2007 Tour of Homes
April 20, 21, and 22

Tour Hours:
Friday, April 20 - 10 AM – 5 PM
Saturday, April 21 - 10 AM – 5 PM
Sunday,April 22 - 1 PM – 5 PM

In 2006, foreclosures claimed more than 1.2 million homes in the United States, a 42% increase over 2005. According to Reuters, that’s about one foreclosure for every 92 households in America! And now, with the recent collapse of subprime lenders, foreclosure estimates for 2007 and beyond have gotten even worse, spanning predictions that range from optimistic to downright cataclysmic.

Some commentators blame the crisis on lax credit guidelines over the past few years; others fault Wall Street bankers and mortgage-backed securities. Either way, one thing seems abundantly clear: millions of Americans are, or soon will be, overextended and at serious risk of losing their homes. Are you, or someone you know, one of them?

If you’re currently struggling to make your monthly mortgage payment, the decisions you make today could make or break your financial future. Remember, even though most lenders would much rather have the money and interest that your mortgage can generate as opposed to actually taking your home, the foreclosure process can begin immediately after a single mortgage payment is past due, and you’ve breached the agreement. Therefore, don’t wait for this to happen. Even if you’re already late on a payment, there may still be a number of options available to help you keep your home. The key to avoiding foreclosure is enlisting a mortgage specialist to help analyze your financial situation.

The following are a few possible short- and long-term options that could help you avoid foreclosure, depending upon your particular goals and needs.

Refinance
If you have an Adjustable Rate Mortgage and you’re currently struggling to make the monthly payment, then ask yourself this: can you really afford an increase of up to 50% or even 100% of your current payment when your loan resets? Fixed rates are currently near historic lows, and refinancing may provide the stability you need to get through the tough end of this changing real estate market. Even if you have a prepayment penalty, you may still have attractive options that, in the long run, could save you a lot of money. The key is to act now. As more and more subprime lenders collapse and foreclosures increase, credit standards will tighten further, and, depending upon your credit, you may not qualify to refinance in the future.

If you’re an ARM borrower who is not struggling with current mortgage payments, are you prepared for a potential increase when your loan resets? Do you know exactly how much your increase will be? Do you know your index and margin? One of the biggest problems ARM and Negative-Am ARM consumers will face is simply not being aware of and prepared for the changing nature of their mortgage instrument. Don’t let foreclosure sneak up on you. Can you afford a $700 a month increase in your mortgage payment? If you have an ARM, look six to twelve months down the road. What if you lose your job? What if your child’s tuition increases? Will you be able to handle the increased monthly mortgage payment? These are important questions and issues that should be addressed by an expert who has your best interests in mind.

Sell Your Home
If you do have some equity built up, selling your home could be the quick fix you need. Ask a real estate agent for a comparative market analysis to see if your home can be sold before your payment resets at a higher rate. Sure, you may not get the price you could’ve gotten for your home a few years ago, but you may be able to avoid foreclosure and even walk away with some profit.

For many borrowers, however, an increased mortgage payment is not their biggest problem right now. In parts of the country where home values have significantly decreased, some borrowers actually owe more on their mortgage than their house is currently worth. And while this is a terrible position to be in, it does not mean that a house can’t be sold or that foreclosure can’t be averted. Ask your mortgage specialist about the possibility of a short sale, a common strategy that allows you to sell your home at a loss.

Some consumers may want to consider a hard-money refinance. A last resort, this is a more expensive “private money” loan that is not advisable for all borrowers. When it comes to private-money loans, however, be careful. There are scammers out there who prey on people trying desperately to save their homes. Always seek professional advice before taking on any mortgage or refinance. Remember, your goal in refinancing is not to put yourself in a worse position than you’re already in.

Communicate with your Lender
If you don’t have a lot of equity built up, and homes all over your neighborhood are up for sale, foreclosure is not necessarily inevitable. If you simply can’t afford your mortgage and you seem to have no other options, talk to your lender before you get behind. To avoid the expense of a foreclosure, some lenders may be willing to work with you.

If you do get behind in your payments, your lender may provide a forbearance agreement, but lines of communication must be kept open. This type of arrangement will allow you to make back payments and avoid foreclosure. If, however, you run out of options and there seems to be no hope, you could always offer to give up the deed in lieu of foreclosure. To avoid legal costs, some lenders may accept this gesture without initiating foreclosure proceedings.

The subprime collapse is in full swing and, one way or another, millions of borrowers are going to be negatively affected. With the enormous wave of foreclosures expected in the coming years, it’s important to know exactly where you stand with the biggest investment you’ll likely ever make: your home. If you are concerned about possible increases in your monthly payment, get a mortgage check-up today. You’ll be glad that you did.

You did everything right; everything your trusted real estate agent advised you to do. You were referred to a qualified mortgage professional, had a great, meaningful conversation about your short- and long-term financial goals, and were quickly pre-approved for a loan.

Together, you and your agent then searched for and found the perfect home within your budget, and put in an appropriate bid. Finally, you completed the application for your mortgage and were well on your way to qualifying for your piece of the American Dream.

Then one night, while eating dinner, it began. They began! Call after frustrating phone call from fast-talking loan officers with pie-in-the-sky loan programs you hardly understood. You told them you weren’t interested, but they kept on calling. Some were relentless! Some were shameless! And some were even downright rude!

How did this happen? How is it that every mortgage company around suddenly knows more about your plans to purchase or refinance a home than even your closest friends and family members?

No, your real estate agent and mortgage professional did not sell you out. In fact, doing so would be an illegal breach of your privacy. The true culprits in this all-too-common scenario are the credit agencies themselves. That’s right. The same agencies that hold the key to your most vital credit information not only allow for your file to be flagged whenever you apply for a home loan, they actually sell your information as leads to the highest bidders.

Certain mortgage companies will pay top dollar for the opportunity to know exactly who is in the market for new financing. The practice results in what’s known within the industry as “trigger leads.” With a price tag of somewhere between $25 to $100 or more, your name and certain specifics about your credit report, including your address, phone number, mortgage history, and even your FICO score, are sold to mortgage companies which then blindly solicit your business.

Unfortunately, no legislation presently exists to prevent credit bureaus from profiting at your expense. As a trigger lead, you are simply at the mercy of any number of solicitations designed specifically to try and discredit the mortgage professionals you know and trust. Their offers may consist of bait-and-switch loan programs which could be counterproductive to your financial goals and needs. After all, you didn’t ask these people to call, you weren’t referred to them, and they know nothing about your personal financial situation. So, how can they possibly know what’s right for you?

Your best option, then, is to be prepared. Prior to applying for any loan or mortgage program, be sure to visit www.optoutprescreen.com first and opt-out of future credit bureau solicitations. If, however, you’re already deep into the process and it’s too late to completely opt-out, request that any solicitors who contact you place your name and number on their Do Not Call list. All telemarketing companies have their own internal Do Not Call list that they must abide by.

Be sure to take down the name of both the company and the individual who made the call, and to let the solicitor know that you’re doing so. This way, you will have grounds to seek action against them, should they call again. Let them know that you’re aware of your rights and, more importantly, of their obligations.

If, however, you are curious about their programs, listen to what they have to say; but be prepared to ask them a question or two from the list below once they’ve offered you a rate that seems too good to be true.

Where did you get my information? Who gave you permission to call me, and how much did you pay for my information?

By asking this series of straightforward questions, you demonstrate that you’re not an uninformed or unsuspecting mortgage applicant who can be easily victimized.

Why should I be willing to speak with you when you weren’t referred to me by someone I trust?

This question demonstrates that you’re interested in a long-term relationship with a trusted advisor.

How are mortgage interest rates determined, and what impacts the rates that you are offering me today?

Many unprofessional and uninformed individuals believe that home loan rates are based on the 10-Year Treasury Note. This, however, is not true. Mortgage interest rates are actually based on mortgage-backed securities or mortgage bonds. In fact, many times these securities trade in opposite directions, and anyone who’s looking at Treasury Notes to determine the lock on your loan will provide you with inaccurate information.

Asking this question will demonstrate that you’re aware of the fact that mortgage rates can change frequently, even hourly, depending on economic news and market volatility. If they can’t share this information with you, what else might they be leaving out?

What impact does the Federal Reserve have on the rate I will be paying for my first mortgage with you?

The answer here is that it does not. The interest rates that you pay are impacted by the bonds and securities markets. When the Fed changes short term rates, the “Fed Funds Rate” or the “Discount Rate”, only rates for items such as Home Equity Lines of Credit (HELOCs), credit cards, and other similar loans are directly impacted.

What are the specific closing costs associated with the rate and program you’re offering me today?

Many times, interest rates will be quoted with origination fees or discount points included in order to deliver the attractive interest rate being offered. While in some cases your situation may warrant paying these fees to get a better rate, you should always be made aware of these fees and options up front. Also, be aware of any fees disguised as a “Funding Fee.” In some cases, these fees have been hidden in order to deliver what seems like an exceptionally low rate with “no points or fees.”
As you embark on what is likely the largest financial transaction of your life, you need to place yourself in the hands of a professional – not some transactional loan officer who purchased your information from the credit bureaus. Ultimately, there are only a limited number of sources where lenders may turn to obtain mortgage money, and it’s unlikely that you’ll find an unbelievably low rate without an unbelievably high cost. With this in mind, work with a professional you know personally or who has been referred to you by a reliable source.

You did everything right; everything your trusted real estate agent advised you to do. You were referred to a qualified mortgage professional, had a great, meaningful conversation about your short- and long-term financial goals, and were quickly pre-approved for a loan.

Together, you and your agent then searched for and found the perfect home within your budget, and put in an appropriate bid. Finally, you completed the application for your mortgage and were well on your way to qualifying for your piece of the American Dream.

Then one night, while eating dinner, it began. They began! Call after frustrating phone call from fast-talking loan officers with pie-in-the-sky loan programs you hardly understood. You told them you weren’t interested, but they kept on calling. Some were relentless! Some were shameless! And some were even downright rude!

How did this happen? How is it that every mortgage company around suddenly knows more about your plans to purchase or refinance a home than even your closest friends and family members?

No, your real estate agent and mortgage professional did not sell you out. In fact, doing so would be an illegal breach of your privacy. The true culprits in this all-too-common scenario are the credit agencies themselves. That’s right. The same agencies that hold the key to your most vital credit information not only allow for your file to be flagged whenever you apply for a home loan, they actually sell your information as leads to the highest bidders.

Certain mortgage companies will pay top dollar for the opportunity to know exactly who is in the market for new financing. The practice results in what’s known within the industry as “trigger leads.” With a price tag of somewhere between $25 to $100 or more, your name and certain specifics about your credit report, including your address, phone number, mortgage history, and even your FICO score, are sold to mortgage companies which then blindly solicit your business.

Unfortunately, no legislation presently exists to prevent credit bureaus from profiting at your expense. As a trigger lead, you are simply at the mercy of any number of solicitations designed specifically to try and discredit the mortgage professionals you know and trust. Their offers may consist of bait-and-switch loan programs which could be counterproductive to your financial goals and needs. After all, you didn’t ask these people to call, you weren’t referred to them, and they know nothing about your personal financial situation. So, how can they possibly know what’s right for you?

Your best option, then, is to be prepared. Prior to applying for any loan or mortgage program, be sure to visit www.optoutprescreen.com first and opt-out of future credit bureau solicitations. If, however, you’re already deep into the process and it’s too late to completely opt-out, request that any solicitors who contact you place your name and number on their Do Not Call list. All telemarketing companies have their own internal Do Not Call list that they must abide by.

Be sure to take down the name of both the company and the individual who made the call, and to let the solicitor know that you’re doing so. This way, you will have grounds to seek action against them, should they call again. Let them know that you’re aware of your rights and, more importantly, of their obligations.

If, however, you are curious about their programs, listen to what they have to say; but be prepared to ask them a question or two from the list below once they’ve offered you a rate that seems too good to be true.

Where did you get my information? Who gave you permission to call me, and how much did you pay for my information?

By asking this series of straightforward questions, you demonstrate that you’re not an uninformed or unsuspecting mortgage applicant who can be easily victimized.

Why should I be willing to speak with you when you weren’t referred to me by someone I trust?

This question demonstrates that you’re interested in a long-term relationship with a trusted advisor.

How are mortgage interest rates determined, and what impacts the rates that you are offering me today?

Many unprofessional and uninformed individuals believe that home loan rates are based on the 10-Year Treasury Note. This, however, is not true. Mortgage interest rates are actually based on mortgage-backed securities or mortgage bonds. In fact, many times these securities trade in opposite directions, and anyone who’s looking at Treasury Notes to determine the lock on your loan will provide you with inaccurate information.

Asking this question will demonstrate that you’re aware of the fact that mortgage rates can change frequently, even hourly, depending on economic news and market volatility. If they can’t share this information with you, what else might they be leaving out?

What impact does the Federal Reserve have on the rate I will be paying for my first mortgage with you?

The answer here is that it does not. The interest rates that you pay are impacted by the bonds and securities markets. When the Fed changes short term rates, the “Fed Funds Rate” or the “Discount Rate”, only rates for items such as Home Equity Lines of Credit (HELOCs), credit cards, and other similar loans are directly impacted.

What are the specific closing costs associated with the rate and program you’re offering me today?

Many times, interest rates will be quoted with origination fees or discount points included in order to deliver the attractive interest rate being offered. While in some cases your situation may warrant paying these fees to get a better rate, you should always be made aware of these fees and options up front. Also, be aware of any fees disguised as a “Funding Fee.” In some cases, these fees have been hidden in order to deliver what seems like an exceptionally low rate with “no points or fees.”
As you embark on what is likely the largest financial transaction of your life, you need to place yourself in the hands of a professional – not some transactional loan officer who purchased your information from the credit bureaus. Ultimately, there are only a limited number of sources where lenders may turn to obtain mortgage money, and it’s unlikely that you’ll find an unbelievably low rate without an unbelievably high cost. With this in mind, work with a professional you know personally or who has been referred to you by a reliable source.