Lock durations can vary for mortgage financing, but most lenders lock in the interest rate for 60 days from the date the loan application is submitted. As long as the loan is closed within that lock-in period, the lender honors the agreed upon interest rate.

Some consumers are misled by advertising that quotes unrealistically low rates based on 15- or 30-day lock durations. This is called ’short-pricing.’ The lender basically knows the borrower doesn’t have time to meet their conditions and have all the necessary paperwork in order within that brief time period. As a result, the lender is not obligated to honor the low rate that was listed in their advertising.

For simple refinance transactions, a 45-day lock-in period is more realistic. For purchase transactions, which are typically much more complex, you’re much safer going with a 60-day lock, even though the interest rate might be a little higher than the rate you see quoted on billboards and the Internet.

19th Annual Decatur Arts Festival

DECATUR, GA — The City of Decatur invites you to be a part of the 19th annual Decatur Arts Festival set for Memorial Day weekend, May 26 - 27, 2007. A number of festival events will take place throughout the month of May leading up to the final weekend. This interactive, inclusive arts extravaganza includes art and artists from all disciplines and features hands-on participatory art as well as demonstrating and performing arts.

Closing costs are expenses that cover fees associated with the transfer of property ownership, fees paid to state and local governments, and the costs of obtaining a mortgage loan. Some of these fees are negotiable, and could be paid by either the buyer or the seller. Some costs are one-time fees (non-recurring closing costs, such as title search, termite inspection, appraisal, etc.); while other fees such as homeowner’s insurance or property taxes are things you will expect to continue to pay on a regular basis as a homeowner.

As part of the loan selection process, your mortgage consultant should be giving you some idea of how much money you should have in reserve to cover your end of these costs. The Real Estate Settlement Procedures Act (RESPA) requires the lender to provide you with a Good Faith Estimate within three days of the submission of your loan application.

RESPA also states that as a home buyer, you have the legal right to request a copy of the HUD-1 Settlement Statement 24 hours before your closing is scheduled. The HUD-1 clearly defines all closing costs, including those that are to be paid by the buyer and the seller. It’s a good idea to have both of these forms before your closing so you can compare the estimated costs to the actual costs before you finalize your transaction.

Multiple hurricanes along the East and Gulf coasts over the past few years have left more than debris in their wake. One ripple effect that’s slamming coastal residents is double-digit increases in their once-stable homeowner’s insurance rates.

From Florida to Massachusetts, many coastal homeowners have seen their insurance rates climb by 20% or more. “Someone in Ohio who’s moving to coastal South Carolina should expect to pay more for insurance than what they’re paying now,” says agent Wendell Sutton, of Kinghorn Insurance Services, in Hilton Head, S.C.

In many cases, insurance companies are not renewing policies. Dennis Slattery, 60, a 19-year resident of Hernando Beach, Fla., lives in a house on the beach. He recently learned that his carrier was dropping his coverage because of “catastrophic risk management” – in other words, the risk from future hurricanes. Many other Floridians, he notes, are facing rate increases that they can’t afford. “People are worried, and some are thinking of moving,” Slattery says.

Insurance companies are raising rates and dropping coverage in an attempt to reduce their risk exposure. “The old view was that we would have a bad hurricane every few years,” says Robert Klein, director of the Center for Risk Management and Insurance Research at Georgia State University. “The tone of insurers started changing after the fourth hurricane hit in ‘04.”

Not ready to give up the surf? There are some ways you can reduce your insurance costs.

Shop Around
“You can easily pay twice as much from one company to another,” says Robert Hunter, director of insurance for the Consumer Federation of America. Compare rates of two or more carriers.

Most state insurance commission websites offer price information, a list of the state’s leading insurers, and buyers’ guides. Visit www.insureuonline.org to find links to each state commission.

If your coverage has been dropped, you can learn about “last resort” options at the commission sites. Most states have insurance pools for coastal residents who can’t get coverage, but be prepared to pay higher rates than other residents who still qualify in the private market. For example, those in Louisiana’s last-resort option, called Louisiana Citizens Property Insurance Corp., pay premiums that must be 10% above the average of the top ten writers in the parish they reside in. “By law it’s more expensive than the private sector,” says Jim Donelon, Louisiana insurance commissioner.

Keep Coverage Up to Date
If you’ve fixed up your house or property, tell your carrier; maintaining your home will reduce your liability. Also, don’t overinsure. Madelyn Flannagan, a vice-president of the Independent Insurance Agents and Brokers of America, notes that “homeowners just need to insure the cost to replace the house.”

Seek Discounts
Improvements for safety, such as installing windows that can survive winds of 150 to 180 miles per hour, could cut your premium. Ask for a senior discount or for a longevity discount if you’re a longtime client. Cobbling together several discounts could offset any increases in your premium. Also, you could save money if you buy your homeowner’s, auto, and other coverage from the same insurer.

Adjust Out-of-Pocket Costs
“Play with your deductible,” says agent Kathy McKay, of McKay Stelling & Associates, which serves Charleston, S.C. Raising your deductible from $250 to $1,000 might save you 10% to 15% on your premium.

In many coastal areas, you may need a separate policy for wind and hail. And flood insurance is a must, insurance experts say. You can purchase flood insurance through the federal subsidized program, and you can buy extra coverage from private insurers.

Home Equity Lines of Credit or HELOCS are a hot topic of debate these days. Praised as an extremely valuable financial tool by some experts, HELOCs worry other pundits who fear that uninformed consumers will end up putting themselves in even greater debt.

At YOU Magazine, however, we have no interest in furthering this debate. Instead, this article is designed simply to explain what HELOCS are and how they work, including their advantages and disadvantages. Finally, we will offer three scenarios borrowers might commonly face in today’s market, and present how HELOCs could affect their short- and long-term financial goals.

What is a HELOC?
Like a traditional mortgage, a HELOC is a line of credit taken out against real estate or available real estate equity. Unlike a traditional mortgage, HELOC borrowers, using special checks or credit cards, are advanced chosen sums up to the maximum withdrawal amount originally approved by the lender. A HELOC is set up over a specific term, which means borrowers have a predetermined draw period (often 5 to 10 years) and repayment period (generally 10 to 20 years). Borrowers are only required to pay interest during the draw period and principle payments during the repayment period.

Advantages
When set up correctly and utilized responsibly, a HELOC can offer a borrower convenience, peace of mind, and support for:

Lowering down payments
Remodeling and home improvements
Paying off high-interest credit cards or other revolving debt
Paying for college tuition
Creating liquidity for investment opportunities
When consumers are presented with potential investment opportunities, the timing of the market or possible income tax ramifications may make it unwise to liquidate invested assets. With a HELOC in place, a responsible borrower won’t necessarily have to miss out on calculated investment opportunities. A HELOC can also serve as a kind of financial insurance policy against:

Major financial crisis or loss of income
Unexpected family emergencies
PMI premiums
Potential Dangers
The ease of obtaining a HELOC makes it very tempting. But remember, when a borrower opens a home equity line of credit, the transaction does place their home at risk. Home equity lines typically involve variable interest rates based on a publicly available index, which means the interest rate will fluctuate, mirroring the index. To calculate the interest rate that the borrower will pay, most lenders add a margin to the index value. Because the cost of borrowing is tied directly to the index rate, it is important to find out which index and what margin each lender uses, how often the index changes, and how high it has risen in the past. Typically, the index used is the Prime Rate.

Finally, borrowers should also be aware that the lender retains the right to suspend or reduce the line of credit available if any of the following occur:

The property value falls lower than the appraised value used to originate the loan, and the bank decides it is necessary to re-evaluate the loan.
The lender believes your ability to repay the loan has changed for the worse (after missing a payment).
The borrower defaults on any condition of the agreement.
The IRS files a tax lien or any other governmental action occurs that might affect the lien position of the loan.
The loan is paid down to a zero balance.
Now that we’ve examined the potential benefits and dangers of HELOCs, let’s take a closer look at some common HELOC scenarios that borrowers may encounter.

New Mortgages and Refis:
Home buyers who are putting at least 20% down or homeowners who have at least 20% equity when refinancing should consider taking out a HELOC at the time of closing. In many cases there is no cost to initiate a HELOC. And, should property values fall in the future, the HELOC will already have been secured at the higher appraised value.

HELOC Holders
Over the last three years, many homeowners initiated HELOCs either to minimize their down payment or avoid PMI, which is now tax deductible for new borrowers. These homeowners have seen their interest rate move with each action taken by the Federal Reserve. For many of these borrowers, the dangers now outweigh the benefits of having a HELOC in place, since three years ago it was a much different real estate market. To decrease the overall amount of interest, in some cases significantly, these borrowers should consider refinancing into one new first mortgage.

Considering a HELOC?
For homeowners currently considering a HELOC for major home improvements, starting a new business, or looking to fund another major expense of $50,000 or more, think twice. Many borrowers in this situation will be much better off taking on a new first mortgage and pulling their cash out in one lump sum. Even with a fixed or low interest rate mortgage in place, some borrowers could easily reduce their overall interest payments with one new loan, as opposed to adding a new HELOC to the first mortgage.

A HELOC is not a one-size-fits-all product. And, while it has definite dangers, it can be an extremely value tool if initiated properly and used responsibly. If you’ve been considering (or avoiding) a HELOC because of the recent flood of media reports, seek the advice of a mortgage professional to determine whether a HELOC could help meet your specific financial needs and goals.

Home styles are ever-changing and one of the hotter new ‘must-have’ features is actually not inside the home at all–it’s out in the garage! You’ll love these new styles that include an amazing array of doors and sophisticated storage systems..

The most popular of the new doors is the carriage-house look. It’s compatible with most traditional home styles, and almost any feature can be added including windows with leaded or beveled glass. While the upscale carriage-house door can range up to $30,000, the cost can be controlled by the type of material used - steel or wood - and the degree to which you customize it.

Walk inside the “new garage” and you’ll be surprised with some revolutionary concepts in home improvement. A clean, well-organized space for bicycles, gardening equipment, and even power tools can be achieved all while still providing room for your car. Professional storage systems offer everything from storage cabinets, shelving and wall systems to work areas for projects and gardening. The next time someone is looking for their sports equipment, you’ll know right where to send them.

And don’t forget that special flooring made just for garages! Epoxy paint is no longer your only option. Products range from roll-out solid sheeting to snap-together tiles — all designed to resist oil, grease, petroleum products, antifreeze and most household chemicals resulting in a clean space.

So put an end to the saga of where to keep all that ’stuff.’ Get organized while adding beauty and value to your home.

Roses Are Red………and Yellow, and Pink, and White, and…..
Thinking of giving Mom some roses for Mother’s Day?

All roses symbolize love, but their colors have special meanings. Before you buy, you might want to think about what special message you will be sending.

Red - love, passion, respect, courage
Yellow - joy, friendship, freedom
Pink - happiness, gratitude, appreciation, admiration
Cream - thoughtfulness, charm, graciousness
Orange - admiration, fascination, enthusiasm, desire
White - innocence, purity, secrecy, reverence

Whatever color you choose, your mom, grandmother, wife, or other special lady in your life will appreciate being remembered!