Stephanie Reynolds

If you have purchased a home recently within San Diego County, you may have received a form from the Assessors Office for a Homeowner's Property Tax Exemption. If you have not already done so, make sure you complete the form and send it back to the Assessor's Office! I have also provided it for you here if you need it.

This Property Tax Exemption is for homeowners who occupy their property as their primary residence. At the time you purchased your home, the purchase price is considered to be the "assessed value" of the property. The Tax Collector uses this value to calculate what your taxes will be. When you file for the Homeowner's Property Tax Exemption, the assessed value will be reduced by $7000 which will save you about $70 a year on your property taxes!

There is no fee to complete the paperwork, and once you have filed for the Property Tax Exemption, it will remain on the property as long as you own it and keep it as your primary residence.

This Property Tax Exemption is not available if the property is an investment property or if you claim a Disabled Veteran's Exemption.

If you currently own a home and are not sure if you have filed for the Property Tax Exemption, take a look at your most recent property tax bill and it will tell you if it has been filed. If you have not filed, be sure to do so! $70 is $70! That would pay for 2 tanks of gas in my car! Every little bit helps these days!

If you have any questions or need assistance in completing the Property Tax Exemption form, I am available! I would love to hear from you!

With all of the external opinions, information and statistics you may wonder when is the right time to buy or when is the right time to sell.

Here are a few things to consider when looking to buy or sell a home:

Real Estate news generally tells you two things: market trends and market prices. It does not tell you how the unique circumstances of one person or one family has created a sale, one home at a time.

Let's break that down.

Where you are in your life may be one of those factors. Financially are you in a position to buy a home today? Or do you need time to save money? Have you been preapproved for a loan? How does a house payment fit into the family budget?

Are you in a situation you must sell your home today? Or can you afford to wait? Will you benefit from the sale? Or have circumstances presented themselves where you may not have another option?

Are there personal life changes, where your household is growing due to the addition of kids, pets or elder parents? Perhaps kids are going off to college and it is time to downsize.

A knowledgeable and competent Real Estate Agent will always be able to tell you market trends and market prices, but they can't tell you where you are financially or what personal life changes that determine your needs.

YOU and only YOU will know when it is the right time to buy or sell a home.

Most everyone loves to decorate their homes for the holidays! Rarely is there a time where you can decorate AND save money! This year, SDG&E is offering an excellent program to receive something for FREE and a save money in the process!

SDG&E will be hosting 9 holiday lighting events around the county where you will be able to take 3 strands of your old, costly incandescent light strands and exchange them for 3 LED Multi-colored strands! FREE!

Why LED lights?

• LED lights are 90% less costly to run than your current incandescent lights
• LED lights save energy
• LED lights shine brighter than incandescent
• LED lights last up to 100 times longer
• LED lights are cool to the touch and reduce fire hazard

In addition to receiving your FREE holiday lights, you will also receive a Holiday Energy & Water Savings Kit which comes in an Eco-Friendly reusable shopping bag which includes a low-flow shower head and 3 water aerators. More FREE stuff!

At the El Cajon and Coronado events, SDG&Ecustomers will also be able to exchange 5 incandescent bulbs for energy efficient CFL lights. The FREEBIES continue! Additionally, at El Cajon and Coronado customers will be able to exchange up to two halogen torchiere lamps for more energy efficient models!

To find the location in your area, visit the SDG&E site for details and program requirements.

The holidays are a time for love, family and FREEBIES! Enjoy decorating and saving some dough in the process!

MAKE THE HOME OF YOUR DREAMS A REALITY!

This article was inspired by reading Richard Smith's post this morning Mortgage Insurance Companies-Losses Increase Concern. I thought I would take the opportunity to clarify what Mortgage Insurance is.

There is a lot of confusion when I am asked about Mortgage Insurance. Does it cover me if I lose my job? Is it protection for me if I become disabled? Does it cover my payment? Is it like my hazard insurance policy? How does it work? Is the lender providing my insurance?

Mortgage Insurance is insurance coverage for the lender on a mortgage with less than a 20% down payment. Insurance for the lender? Why am I providing insurance for the lender? Here is how it works. The lender has agreed to give you a loan. You have great credit, a good job, have found your perfect home-except you do not have a 20% down payment. Typically, this is what the mortgage industry has found to be a reasonable amount to show the buyer is "invested" in the property. Studies have shown that buyers with a 20% cash investment in a property are less likely to result in foreclosure and risk the loss of their 20% investment of their own funds.

BUT THAT'S NOT FAIR! I have worked really hard to get where I am and have saved enough for 5% down! I still should be able to get a loan! You are right! And the lenders agree! However, in order for the lender to feel like their investment in making the loan is protected, they are going to require you provide them with "insurance" that will protect them from a loss between the 80% Loan to Value ratio (where they feel comfortable lending) and the 95% Loan to Value ratio (you can afford!).

This is where Mortgage Insurance comes in. Based on the loan to value (LTV) of the loan being obtained, the lender will require insurance coverage to cover themselves in case of a loss due to foreclosure. The lender is willing to go to 80% LTV and then the Private Mortgage Insurersays ok, these people are a good risk based on all of the guidelines we have set up, we will cover the difference. (From 80.01% to 97% LTV) Any loss the lender would take in the event of foreclosure for this difference (16.9% variance) is covered by Mortgage Insurance.

The premiums for Mortgage Insuranceare based on a percentage of the loan amount and are set by the insurance company. The percentage is based on the LTV, underwriting guidelines, FICO scores and the amount of risk they are covering. The percentage can range anywhere from .5% to 1.64% of the loan amount. Example: $100,000 purchase with 5% down payment gives us a loan of $95,000 and a 95% LTV. The Mortgage Insurance for this loan assuming a factor of 1.06% would be an annual premium of $1007 with monthly payments of $83.92. This amount would be included with your monthly principal and interest payment, taxes and insurance and would constitute your total mortgage payment for the loan.

Are PMI and MIP the same thing? The difference between PMI and MIP is who the insurance carrier is. PMI stands for Private Mortgage Insuranceand is offered by privately owned companies for the lenders insurance on a conventional loan. MIP stands for Mortgage Insurance Premium and is used when describing the Mortgage Insurance on an FHA loan. They work the same; they both provide the lender with insurance against loss in the event of a foreclosure.

Is Mortgage Insurance tax deductible? Depending upon your household income, all or a portion of borrower paid Mortgage Insurance is tax deductible through the year 2010. Your CPA or tax preparer should be able to assist you with the income limitations.

Can I cancel Mortgage Insurance? The buyer can not cancel with the Mortgage Insurance company directly. The lender is the one collecting the payments and paying the premium directly to the Mortgage Insurance company and they are the only ones with the ability to cancel the policy. You can request cancellation of Mortgage Insurance through your lender if the equity in your home is below 80% loan to value, you are making your payments on time and have the loan for over one year. The lender may require there be an appraisal done on the property to confirm the LTV is below 80%. As long as this is determined, the Mortgage Insurancewill be canceled. Any loan made today with Mortgage Insuranceis required to automatically cancel the Mortgage Insurance once the LTV has reached 78% of the original value of the property at the time the loan was made. This cancellation applies to both conventional and FHA loans.

So, what is the benefit of Mortgage Insurance? It enables you, the buyer the opportunity to own a home with less than 20% down. It provides insurance to the lender to make them feel warm and fuzzy about giving you a loan with less than 20% down by providing coverage for any loss above the 80%. It is not for the life of the loan and all or a portion may be tax deductible (for at least another year!) Not such a bad deal! Here you thought you would have to wait. Go find the home of your dreams! Happy House Hunting!

You have determined now is the time to buy

So your dream of homeownership is becoming a reality. How exciting! You have envisioned this moment for a long time, the style of your home, the great location, the dog you will get to run around the backyard. You are here, visiting this site to help get a clear understanding of the process. You are on the right track and your Agent of Possibility is here to assist you in reaching your goal. We have prepared a checklist to help you in getting clear as to the wants and needs of your purchase. Review and download the form aopworksheet and fax or email the form back to your Agent of Possibility so we are able to find your Dream Home!

Real Estate Agent vs. Agent of Possibility

You are able to find an agent anywhere. What sets us apart from your typical real estate agent is we keep your best interest in mind at all times as well as using your intentions to find the home of your Dreams. We are REALTOR's®, which means we take that title with the clearest intention of living up to the code of ethics as laid out by the National Association of REALTOR's®. We will always operate with the highest integrity, compentancy and fairness uninfluenced by personal gain. We will keep any and all information given to us by our clients confidential and hold your interest above all. With an Agent of Possibility, you can feel confident your dreams and intentions will remain in professional hands. We take pride in our mission to Make the Home of Your Dreams a Reality.

If you have always known, or you can feel it in your bones, or have visualized, meditated, chanted, prayed, sensed it, saved for it, planned for it, or just simply think this is the year, month, day, or minute to buy, sell, or invest in real estate...then we are your Agents of Possibility!

We continue to educate ourselves in all aspects of the real estate so we are able to provide you with the valuable information for you to make informed decisions. Thank you for your confidence, our intention is to exceed your expectations.