Anchorage, AK

The Alaskan portion of the Purple Heart Trail will be dedicated in a ceremony this Saturday (June 6, 2009) at 11 a.m. A ceremony will be held dedicating the portion of the Alaska Highway between Fairbanks and Delta Junction honoring those who have served their country and were awarded the Purple Heart Medal for their sacrifice. The ceremony will be held at the Delta Junction Visitor's Center.

Senator Johnny Ellis of Anchorage sponsored a bill to dedicate a portion of the Alaska Highway to the Alaska Legistature. The bill received a unanimous "yes"vote. As is fitting, Senator Ellis will be the keynote speaker at the dedication.

The date chosen for the dedication is quite significant, as it marks the 65th anniversary of D-Day. D-Day, the invasion of France on the Normandy Beach, was the beginning of the end of Word WarII conflict in Europe. June 6, 1944 saw many a brave serviceman earn a Purple Heart Medal with the sacrificing of their lives and blood.

The Vietnam Motorcycle Club will conduct a Fallen Warrior ceremony at the dedication to honor all those who have defended this country and paid the price with their lives.

The Military Order of the Purple Heart began working in 1992 to establish a nationwide trail as a tribute to the men and women who have served and given their all for our freedom. Since that time, 45 states have dedicated portions of their highways due to their efforts. I am very proud that our great State of Alaska is among them.

It is only proper and right that we dedicate a portion of our roadway to honor those who have paved the road to freedom and to keeping this country free with their bloodshed.

Freedom is never "free"!
Pauline Hofseth, your Anchorage real estate expert

D-Day Video

In the past two weeks, interest rates began to inch up slightly. This week, RealtyTimes.com reports that today's interest rate fell back. The current interest rate is 4.75% for a 30-year mortgage and 4.5% for a 15-year fixed rate. That report led to today's blog. Depending on your current interest rate, it just may be time for you to consider a refinance. If your loan's interest rate is around 6.5%, a refinance is definitely something you should check into.

* A reduction from a 6.5% to the current 4.75% interest rate would result in a savings of over $200 a month.

If that statement made you perk up your virtual ears, then I would like to remind you about the Making Home Affordable Refinance program sponsored as part of the recovery plan.

* You do not have to be in a distressed situation to take advantage of the program.

Anchorage is one of the places in the nation that the Making Home Affordable program can be of real benefit since our housing has not suffered the steep decline in values that other areas in the lower 48 have experienced. Both Making Home Affordable program and FHA will refinance the loan balance for homeowners who owe more than the property's current value.

* The Making Home Affordable program will refinance your loan balance if it is no more than 105% of the value of the home.
* FHA will refinance your loan balance if the first mortgage is less than 97% of the homes current value.

If you have equity in your home and pay PMI (Private Mortgage Insurance - insurance lenders require if the home was financed with less than 20% down), the savings could be even greater.

* PMI may no longer be required.

Most homeowners can take advantage of the government refinance loan programs.

* Making Home Affordable Program applies to Fannie Mae and Freddie Mac loans.
* FHA also offers a refinance program.

If you have a first and second mortgage, a refinance could eliminate your second mortgage.

* Make only one mortgage payment and save thousands of dollars in interest.

Check out all your options on the type of refinance which will best meet your circumstances and goals before you make a decision.

* Making Home Affordable Program
* FHA Refinance (even if your current loan is financed through FHA)
* An FHA Streamline (current loan must be FHA loan)
* Conventional refinancing through a mortgage lender

Taking advantage of today's refinancing opportunities may be a wise decision, but it does depend on your personal circumstance, finances and goals. I do think it is to the Anchorage homeowner's advantage to check out the possibility of a refinance. When considering a refinance you need to look at your long time goals.

* A refinance is not free. There are fees and points to consider.

According to the various economists and mortgage lenders, interest rates are not expected to decline any lower than 4.5%. However, they are expected to increase as the housing market improves, loan applications increase and the economy recovers.

Pauline Hofseth, your Anchorage real estate resource

Thank you to the mystery donor who has made a donation of $7 million to our University of Alaska Anchorage campus. The University of Alaska is one of more than 12 colleges to benefit the mystery donor's generous gifts. In total, various colleges have received over $80 million dollars.

The requirement for receiving the funds is quite simple: "don't ask and don't tell. The donation stipulates that the University must not try to find the mystery donor and, for the few that know, they must never reveal the identity of the mystery person.

Approximately $6 million will be set aside for scholarships for University students, particularly for minority races and women, as requested by the mystery donor. The Seawolf Opportunities Scholarship fund will provide 50 students with full scholarships to the University of Alaska - Anchorage campus. The scholarships will be awarded to first generation college students in need of financial assistance. Additional funds will be awarded to qualifying students as an incentive for completing their Associate and Bachelor degrees.

Only $1 million dollars of this much appreciated gift will go towards the fall opening of the newly completed Conoco Phillips Integrated Science Building. There is no doubt that the kindness and generosity of our mystery donor will change lives for generations to come in Anchorage. It always amazes me when I think of what the power of one person can do to change the world.

Whoever you are, wherever you are...I want to express my personal thank you for your kindness and extreme generosity.

Pauline Hofseth, your Anchorage real estate resource guide

Spring brings thoughts of renewing our homes and gardens. Spring is also the time we celerate Earth Day. I was thinking of how Earth Day relates to Anchorage homeowners beyond recycling. I was also thinking about how green living is becoming increasingly important to the homeowners in terms of the resale value of their homes. These thoughts reminded me that the Federal government is offering to help homeowners go green while improving their homes with a tax credit. The American Reinvestment and Recovery Act is providing a tax credit of 30% ($1500 cap) for energy efficient home improvements.

Home Improvement Tax Credit Guidelines:

* The home improvements must be in operating condition or in use starting January 1 of this year and no later than December 31, 2010.
* The tax credit applies to the homeowner's prinicipal residence only.
* The tax credit applies to all qualifing improvements made, not to each improvement separately.
* A Manufacturer Certification Statement is required. You do not have to submit a copy. However, you must have a copy on file.
* A receipt for the qualifing home improvement must be kept as well.
* The tax credit will be applied to 2009 tax filings (Tax Form 5695).

Home Improvement Tax Credit Exceptions:

* Second homes and rental property are eligible for tax credits when geothermal heat pumps, small wind systems, solar water heaters or solar panels are installed.
* The Home improvement Tax Credit is available until 2016 for fuel cells, geothermal heat pumps, small wind systems, solar water heaters or solar panel systems.

Existing Home Qualifying Systems:

* Doors and Storm Doors - Not all ENERGY STAR doors will qualify.
* Windows, Storm Windows and/or Skylights - Not all ENERGY STAR labeled windows and skylights qualify for tax credit.
* Insulation
* Metal or Asphalt roofing
* Heating and Air systems - List of qualifying products: Consortium for Energy Efficiency product directory
* Energy efficient water heaters - ENERGY STAR criteria for water heaters. A ll gas tankless water heaters qualify.
* Bio-mass stoves for household heating or water heating
* Geothermal Heat Pumps
* Small Wind Systems
* Solar Systems (water heaters or panels)
* Fuel Cells

If you are planning to build your own home in the near future, there is a tax credit available to you as well.

* The tax credit is a no-cap 30% credit.
* The tax credit is available until 2016.
* The tax credit is limited to fuel cells, geothermal heat pumps, solar water heaters and small wind systems only.

For further details on how the tax credit works and what systems qualify, be sure to visit the Federal Tax Credits For Energy Efficiency website.

There are two benefits to the tax credit program. The first, of course, is the tax credit benefit you receive on your 2009 tax filing. The second is that your home improvement will stimulate our local Anchorage economy with the purchases you make. So, go ahead Anchorage...celebrate Earth Day this year with a tax credit!

Pauline Hofseth, Anchorage Real Estate

In spite of the economic downturn, Anchorage is still growing. The University Lake Springhill Suites Marriott Hotel is nearing completion, with a grand opening expected in August. The Springhill Suites are located in Midtown. The hotel will not target the normal tourist trade, but will instead look to serve those visiting the UAA and APU campuses, as well those in town for medical reasons.

The Springhill Suites features 159 rooms, many of which overlook the nearby lake or park and many have a view of the Chugach Mountains. In addition to the view, the suites include a coffeemaker, a microwave and a refrigerator. Hotel amenities include a free continental breakfast, a fitness room, a swimming pool and shuttle service to the airport, university and medical district.

Anchorage has added several new new high-rise office buildings to its landscape. Office space is at a premium in Anchorage real estate, so the new additions are much appreciated by local businesses. The Centerpoint West (eight-stories) is scheduled to open later this year. Over half of the space is already leased. The 14-story Augustine Center is scheduled for completion in 2010.

Pauline Hofseth, Anchorage Real Estate