Interesting fact of the day: 55.5% of "wealthy" Americans have mortgages on their primary homes vs. 44.6% of the overall population.  This doesn't mean that the wealthy are more indebted than the rest of us; it means that the wealthy are maximizing the tax deductions that the IRS makes available to every homeowner in the country.It's also possible that wealthy Americans may be more likely to work with financial planners and CPAs to devise short- and long-term financial plans that take advantage of mortgage interest. See, unlike every other type of consumer debt, interest paid on most home loans are tax-deductible and are deducted from the homeowner's annual income.  For this reason, a homeowner's "bottom line" interest cost is much, much less than his note rate.  If you are in the 28% ... 06/04/2007

Pop Quiz: Which interest rate is lower?  8.25% or Prime Rate?If you answered anything other than "they are the same", then you can understand first-hand why banks refer to Prime Rate by name instead of by number.  It's a neat little piece of sales psychology that keeps people from recognizing their true cost of credit.Prime Rate is based on the Fed Funds Rate and is pegged to be 3.000% higher.  FFR is currently 5.250% (see chart) so Prime Rate is three percentage points higher, or 8.250%.Since June 2004, Prime Rate has increased by 4.250% from 4.000% to today's levels (again, see chart).  During that time span, the interest rate paid on home equity lines of credit have increased by 4.250%, too.  For many homeowners, this is surprising (and costly) news.  And it's also one of the main r... 06/03/2007

Your name is worth everything to you...it's your identity, it's YOU.  Here's breaking news you need to know...and you need to let all your family and friends know right away as well.    Few people realize that each time their credit is checked, the information provided to the credit bureaus (Equifax, TransUnion, Innovis or Experian) immediately becomes a commodity that is sold not only to other lenders but also to companies that sell and resell the same names and personal information.  That's right - The credit bureaus have found a way to increase their revenues at your expense....and without your permission.  These ‘inquiry leads' include name, address, phone numbers (including unlisted), credit score, current debt and debt history, property information, age, gender and estimated incom... 06/03/2007

Southern California Logistics Airport, the City of Victorville, The Lions club  and Orbis had a party tonight.If you haven't heard about Orbis you should.  It is the only ONLY  Flying Eye Hospital in the world.The City of Victorville has adopted Orbis. The Southern California Logistics Airport is performing a class B maintenance on the plane. The Lions Club is raising funds for it. Someone from Spring Valley lake donated $10,000. Tonight there were about 500 people at one of the Hangers at the airport having a party and celebrating 25 years of orbis the brain Child of Dr David Patton. Live music, food from several of our great local restaurants and lots of fun.A tour of the plane is impressive. The Program of the OFEH is even more impressive. Volunteers, non paid doctors on vacation man... 06/02/2007

Most of us sell only a few homes in our lifetime.  With such limited experience in real estate, how do you maximize the profits from your home sale?  Many home sellers make the critical mistake of thinking all Realtorsâ are the same.  They list with the first agent who comes along.  Does it make good business sense to put the responsibility of selling your home with someone who has no plan or qualifications?  This report will give you key fundamental characteristics you should look for when selecting an agent.  So, where do you start?  By doing a few hours of research.  Ask around!  Find out who has the most signs, ads and marketing material in your neighborhood.  Who's the most active agent?  Compile a list of agent names and use these questions to help determine which agent is right f... 05/30/2007

Selling your home can be an exhausting experience.  Last minute walk-throughs, inconvenient calls, price adjustments and the possibility of being stuck with two mortgages are real concerns.  If you are not completely prepared, you could end up losing hundreds even thousands of dollars in profit.The difference between a profitable smooth transaction and a break-even... miserable experience is often a fine line.  In the majority of cases, it comes down to the subtle know-how of your professional.  By utilizing the knowledge of a good, qualified real estate professional, you'll ensure the quick, profitable sale of your home.  This report is designed to arm you with the knowledge to avoid the 11 most common mistakes that cost sellers serious money.1.    Refusing to Make Profit Inducing Repa... 05/29/2007

The right or wrong decision when signing your home mortgage can mean thousands of dollars difference in interest paid.  There are very important considerations to evaluate before you commit to a 15 or 30 year note.  For many of us, our mortgage payment is the most important financial decision we'll ever make.  Doesn't it make sense to know as much as possible about the financing of your home?  Take the time to thoroughly investigate all of your options!Unbelievably many of us sign the first mortgage placed in front of us.  Typically the excitement of the new home purchase reduces the mortgage to not much more than an afterthought.  What you read here could save you hundreds or even thousands of dollars.  Your real estate professional has established relationships with the top lenders in... 05/28/2007

In the age of "I want, I need, and I must have", I think it's important to have the ability to see things on a larger scale. The gift of having perspective and to see our lives in comparison with the rest of the people who live in our world. It really does seem the world is getting smaller and smaller these days. When facing tough times in my life, or the inevitable challenges that are presented throughout each day, I remind myself how fortunate I am, and how much better off I have it than most other people who live in our world.  Spend 10 minutes watching any one of the various TV shows that focus on other cultures in other parts of the world.  It's a real eye-opener.  Many people throughout the world live on a day-to-day basis with very little thought of their future. They are simply ... 05/28/2007

Until recently, seniors 62 years of age and older have not had the best choices when it came to getting cash from their homes. Traditional home loans only offered the option of either selling one's house or borrowing against its equity. With reverse mortgages coming on the scene, seniors now have some additional cash-flow alternatives. This type of loan allows mature borrowers to convert their home equity into tax-free income without leaving their current home or making mortgage payments - and they do not need an existing income to qualify.  How a Reverse Mortgage WorksReverse mortgages are probably best understood when compared side-by-side with traditional home mortgages, otherwise known as "forward" mortgages. The following table shows the differences between the two:FORWARD MORTGAGE... 05/27/2007

IF YOU'RE A HOMEOWNER, then you're probably aware of the incredibly generous tax break available when you sell your home. Play your cards right and you can lock in a profit of up to $250,000 ($500,000 when you file jointly) and owe nothing to the IRS. This great deal was enacted in 1997 and came with a couple of caveats. It stated that you must have owned and used the property as your primary residence for at least two years out of the five-year period ending on the sale date. The gain-exclusion privilege was also generally unavailable if you excluded an earlier gain within the two-year period ending on the sale date. In other words, it required a 24-month waiting period before you deleted another home-sale gain from your 1040. Fair enough. But there was a discomforting lack of IRS guid... 05/24/2007

Those who take property ownership seriously often look for options to build equity at a faster pace. An aggressive approach is to select a 15-Year loan program over a 30-Year mortgage.A 15-Year loan works well for homebuyers budgeting time and money, those who are possibly looking forward to a debt-free retirement, or those who plan to upgrade to a larger home within 15 years. But this requires a sincere commitment to making substantially larger monthly payments.Provided the homeowner can afford the financial commitment of a 15-Year loan, they will pay significantly less money in interest simply because the life of the loan is spread over a shorter period of time. However, they need to be aware that unless they are extremely financially secure, even a minor setback can have a tragic imp... 05/23/2007

There are many pitfalls you can avoid when you are in the market to buy a new home. Here are just a few tips and strategies to help you prepare for success:Know your credit score! You may be able to get a better mortgage rate and more favorable loan terms by restructuring some of your balances on credit cards, car loans, etc. The Caylor Mortgage Planning Team can help you correct errors on your credit report and determine which balances to restructure or pay off in order to improve your credit score. Know how much you can spend and determine how much you can afford. The Caylor Mortgage Planning Team can help you: Finance your home based on your monthly payment comfort level Determine how much cash to use as your down payment and where to get these funds Understand your before and after-... 05/22/2007

There are many mortgage and real estate equity planning strategies that can really help you save money on taxes whether you are buying, refinancing or selling a primary home, vacation home or investment property. The Caylor Mortgage Planning Team brings a team approach to your situation by working with qualified CPAs, CFPs and attorneys. In doing so, the Caylor Mortgage Planning Team will help you: Improve your after-tax cash flow Save money by understanding the impact of the "gift tax" when gifting or receiving real estate property and/or down payment funds Save money by understanding the benefits and limitations of mortgage interest deductions when you buy or refinance a property Save money by taking advantage of the proper tax deductions during the home buying or refinancing process ... 05/21/2007

Buying a home is a major achievement in most everyone's life. Pride of ownership, tax breaks, equity and the ability to increase your wealth and net worth are just a few of the many benefits you'll enjoy with your new home. Your home purchase may also be one of the largest you will ever make. During the emotional excitement of buying a home, you may encounter terms with which you are unfamiliar. For some, it can be a bit embarrassing to ask what they consider too many questions. Others may make a note of their questions but simply forget to revisit them. To ensure that you have complete confidence during your home loan process, invest a moment to read this report and become familiar with the concepts and terms you'll encounter. Knowledge is power and the more you know, the more successf... 05/19/2007

One commonly overlooked form of "predatory lending" is when banks and mortgage companies repeatedly encourage people to take out larger mortgages and home equity loans for "debt consolidation" or to spend more by basically consuming your home equity. This often results in spreading car loans and credit card balances over 30 years with no real plan to help you become debt free. Unlike many traditional bankers and brokers, The Caylor Mortgage Planning Team will help you conserve your home equity, not consume it. This involves helping you implement financial strategies that will get your debt down to manageable levels and help you stay on track to become debt free.There is no quick fix to debt reduction; this requires careful planning and implementation. The Caylor Mortgage Planning Team w... 05/16/2007

The appraisal process often baffles consumers. They may feel their home is worth a higher dollar amount, and the appraised value doesn't always make sense to them. It is important to know that appraisal guidelines are dictated by the lenders, and in some states, it is a requirement to also disclose what the appraisal will be used for because there are different rules to follow depending on the purpose.In effect, lender guidelines force appraisers to put a fair market value on homes based on comparable sales in the same area, and the home must be bracketed in size and value. For example, there is no set dollar figure associated with a great view, pool, spa, bathroom upgrades, etc. If a homeowner installs a custom pool that cost them $30,000, but the local marketplace supports the value o... 05/16/2007

If you don't have an estate plan in place, don't worry...the IRS has one for you. But you may not like it, so it's always a good idea to get your finances in order and avoid incurring tax penalties and hefty estate taxes. Knowing the value of your estate and becoming familiar with several exemptions and tax benefits can help you hand your assets over to your loved ones...without handing a portion of your hard earned assets over to Uncle Sam. Some good news-the new Federal estate tax exclusion increased in 2006 to $2 million per person. In the past ten years, that amount has increased over 230 percent, as the figure is up from $600,000 in 1996. Count on this tax exclusion figure to remain in effect until 2009, then the amount is scheduled to increase one more time to $3,500,000 per perso... 05/14/2007

The federal government's Private Mortgage Insurance legislation is great news for the Real Estate Industry! Enacted on January 1st, 2007, the bill makes Private Mortgage Insurance tax deductible for potential borrowers whose personal adjusted gross income is less than $100,000. For millions of home buyers, the bill creates an amazing opportunity to finance a more expensive home or potentially obtain a lower payment for the same-priced home, while reducing annual income taxes by hundreds of dollars.What is PMI?Designed to protect lenders from defaults and foreclosures, Private Mortgage Insurance is required for loans exceeding 80% of the property's value or sales price. Prior to the new legislation, PMI was generally viewed with contempt by homebuyers because of its perceived high cost a... 05/13/2007

But we're not talking about the latest top 40 hit by Mariah Carey!!It's the FED.  The Federal Reserve Board has hiked rates seventeen consecutive times over the past two plus years...and while they've paused in their hiking cycle for the time being, the hits they've given to rates have added up fast.   While an ARM (Adjustable Rate Mortgage) or Home Equity Line of Credit may have saved you a bundle over the past several years of low interest rates - times have changed, and it's likely time to give your whole financial picture a once over and see if any adjustments are needed.  In many cases, it doesn't make sense to change a thing - but wouldn't you sleep better at night knowing that?  And whether or not you have an ARM or a Home Equity Line, we'd like to offer you a complimentary consu... 05/12/2007

In today's world, a college education is more important than ever. Many of the jobs that do not require a college degree have been outsourced to workers in other countries, or replaced by a computer or machine. In addition, according to Fed Chairman Ben Bernanke, the income disparity between college grads and non-grads is growing every year. In 1979, college grads earned 38% more than those with only a high school diploma. But today, college grads earn 75% more than those without degrees!The Cost of Higher EducationLet's face it: college is expensive. And with the cost inflating approximately 5% annually, the cost will only rise. The type of college your child attends can also have a big effect on the cost too. For example, just one year of tuition, room and board at an average private ... 05/10/2007