Karl Peidl - Accredited Loan Consultant

Home News
Lower Your Property-Tax Bill
By Pat Mertz, Kiplinger's Personal Finance, www.kiplinger.com

If you anticipate a silver lining in the black cloud of declining home prices - in the form of lower property-tax bills - you may be disappointed. The National Taxpayers Union figures that as much as 60% of taxable property in the U.S. is over-assessed, largely because assessment cycles haven't caught up with the decline in home values.

In California, for example, a home's assessed value is based on its purchase price, plus increases of up to 2% annually. The house isn't revalued until it's sold again. To capture the price plunge of the past few years, homeowners must file an appeal and prove that their home's assessed value exceeds its market value. In San Diego County, the assessor's office processed 80,000 appeals in 2008; the average reduction in assessed value so far is $110,000, equivalent to a tax cut of $1,200.

Many jurisdictions calculate a home's assessed value as a fraction of its market value, so do the math to make sure your home is priced fairly. Also verify that you have received any breaks you're entitled to, such as a homestead exemption or a reduction for seniors or veterans.

How to appeal. Go to the assessor's Web site or office to double-check the "property card" and any working papers for your home. Are the figures for square footage and number of bedrooms and bathrooms correct? Has the assessor accounted for any features that could detract from your home's value, such as an irregularly sized lot or a carport instead of a garage? Pull the property cards for five or ten neighboring homes that are similar in terms of age, style and features. If the assessments on similar properties are a lot lower - 10% or more - you have a good case based on uniformity.

Otherwise, if you believe your home's assessed value exceeds its market value, you'll have to provide sales-price data for several comparable homes. You can get that information from a real estate agent, or check the local public library or your county assessor's or county clerk's office. Ask the assessor whether a recent appraisal for, say, a refinancing is acceptable proof of your home's market value.

Two chances. Read your assessment letter for details on how to appeal. You'll probably have two windows of opportunity: During the first, you may request a reduction in the assessed value of your home for the forthcoming tax bill. During the second, you may appeal for a retroactive reduction and refund.

Until your appeal is resolved, pay your tax bill in full to avoid incurring penalties and a lien against your home. As a last resort, you could go to court, but that's an expensive process usually best suited for commercial property owners with more at stake.

You may see advertisements for companies that will help you appeal your assessment, often in exchange for about half of any savings on your tax bill. But with the right preparation, you can probably do just as well yourself using a guide such as How to Fight Property Taxes ($6.95), from the National Taxpayers Union. The NTU's Web site also has links to state and local taxpayer associations that may offer further insight into the appeals process.

Financial Tips for Couples Who Need to Talk

Tough economic times can cause a major strain on your marriage. And while we all know that communication is often the key to overcoming this challenge, discussing finances with a spouse can be extremely difficult for many people. With this in mind, here are some tips to at least get the conversation started.

Get Out of the House - One of the worst times to discuss finances with your significant other is just after you've paid the bills. Let's face it, there's something about writing all of those checks that suddenly makes the reality of your monthly finances sink in. So, instead of approaching your spouse with statements in hand, try waiting a few hours. Think about what you want to say and how you want to say it. Then invite your partner for a walk or a cup of coffee at a local coffee house. The key here is a change of environment, a relaxed, neutral place where your partner won't feel like he or she is being attacked.

Give Your Partner Some Credit - If starting the conversation is hard for you, try opening with a story about your parents' attitude and behavior towards money. This will provide an opportunity for your partner to do the same, opening the door for the discussion. Experts suggest starting off with an example of your own shortcomings and how you hope to change it. Also, offering a compliment of what he or she has been doing right is a great way to break the ice.

Never Assume - Your goal here is to establish a common ground, to create and quantify a plan of action that will benefit you both, even a small goal that you both can work toward as a team. Because of this, you really can't assume that your values and beliefs are absolutely correct and flawless. Be respectful and humble and listen to what your partner has to say. Most importantly, don't blame.

Bring in an Expert - Take the conversation to the next level. Once you've established a general plan, talking to a financial planner together can serve not only to ease the tension, but to solidify your common goals. Either way, keep talking, keep trying, and avoid bickering. Remember, no argument has ever decreased anyone's monthly bills and keeping quiet has never increased anyone's savings.

$8,000 Tax Credit for First Time Home Buyers

Mortgage News
What Would You Do With $8,000?

What if the government decided today that, instead of bailing out Wall Street, it was going to give every American $8,000? What would you do with the money?

For most Americans, paying off credit card debt would be a great way to use the free money. According to a Nilson Report released in April 2009, the average credit card debt per household in the US was $8,329 at the end of 2008. That money from the government would almost wipe out your debt completely. Imagine being completely debt free.

Healthcare is a big topic these days. According to the most current Census Bureau statistics, some 45.7 million Americans do not have health insurance. So, many Americans might choose to use their $8,000 to enroll their family in a healthcare program through their employer. The federal government tracks the average spending on health insurance for people with job-based coverage, and the most recent figures (from 2005!) indicate that the average individual's premiums were $3,991, while families spent an average of $10,728. Your $8,000 would go a long way in insuring your family.

Some Americans might choose to start a small business. Experts estimate that start-up costs for many new business ventures are between $10,000 - $15,000. With $8,000, a large portion of your initial investment would be covered.

If you really think about it, there are so many things you could do with $8,000. You could open a 529 college savings plan. You could add your 8 grand to the government's $4,500 Cash for Clunkers plan and buy a new car. You could take your family on an amazing once-in-a-lifetime vacation. You could open an IRA and save for retirement...

But what's the point in dreaming. The government's not giving away $8,000, right?

Wrong.

Right now, through November 30th of this year only, the government is giving qualifying first-time home buyers up to $8,000 for purchasing a home (or up to 10% of the purchase price). This is free money that you do not have to pay back. And here's the best part: if you qualify, you can get your money from the IRS this year, even if you've already filed your 2008 taxes.

There are, of course, limitations and other qualifying factors, but they are all pretty reasonable and easy to explain, and we'll be glad to discuss these with you or anyone you know who is looking to buy a home. With today's combination of lower home prices and lower interest rates, this temporary incentive from the government is really a great option for many Americans who act now to finally fulfill their dreams of owning a home.

If you know anyone who is looking to buy, sell or refinance a home, please forward their name and telephone number to us. We will happily provide the same high level of service that we have provided to you. The greatest compliment you could possibly give us is the referral of your friends and family.

Mortgage Rate Update & Go Back to School...For Free!

These days, many adults are taking classes to retool their skills or learn about new industries. With a little research and a little effort, returning to school may be a whole lot easier...and a whole lot cheaper...than you think!
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Here are some great tips for getting that education for free.

Scholarships...
Many scholarships don't have age limits, which means everyone is eligible. Check out www.Fastweb.com and www.SuperCollege.com to search for available scholarships.

Professional and Trade Organizations...
Local and national professional and trade organizations often offer grants and scholarships. Begin by doing an Internet search for your particular locale and specialty. You can also contact your local Chamber of Commerce to see if they have any information on local grants and scholarships.

Colleges and Universities...
Many schools offer scholarships created especially for adults who are returning to school. Check a school's individual Web site or contact the admissions office for details.

The Government...
Individual states may provide grants to help people attend the re-training programs they sponsor. Information and links can be found at www.careeronestop.org. In addition, the Obama administration has launched www.opportunity.gov to help unemployed adults return to college. The site includes information on a variety of federal student aid programs.

Employers...
A large number of employers still offer tuition assistance, especially if you can show how the educational program will help your job performance. For adults who want to return to school while they are still working, this is another avenue to consider.

Mortgage Interest Rates*

Rates as of Thursday, 20th August, 2009:

*Rates are subject to change due to market fluctuations and borrower's eligibility.

Karl Peidl
Lincoln Mortgage Company
251 Bellevue Avenue, Suite 102
Hammonton, NJ 08037

609-878-7013

kpeidl@linc-mort.com

www.facebook.com/newjerseymortgages