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Sunshine and Open Spaces Equal Happiness

People who live in warm, sunny states where the living is easy are happier than people who live where the weather, prices, air quality, and congestion aren’t so agreeable, according to comparison of statistics compiled by the Centers for Disease Control and Prevention.

The study asked participants: “How satisfied are you with your life?” The results showed that the happiest state is Louisiana; rounding out the top five are Hawaii, Florida, Tennessee, and Arizona.

New York State is at the bottom of the happiness scale. California ranks 46.

Economists Andrew J. Oswald of the University of Warwick in England and Stephen Wu of Hamilton College in Clinton, N.Y., published these finding in Friday’s edition of Science magazine. Oswald says the happiest people tend to live in states that do well in quality-of-life studies, and people who live in states where there are long commutes, congestion, and high prices are more likely to be unhappy.

Source: Associated Press, Randolph E. Schmid (12/17/2009)

RISMEDIA, January 23, 2010—(MCT)—After more than a year of talking about it, actual change has finally arrived for the tens of millions of Americans who rely on credit cards.

Come February 22, 2010, card lenders will be barred from raising interest rates on most borrowers’ existing balances—a practice that increasingly irked consumers over the last decade and one of several that federal regulators and lawmakers finally barred as unfair and deceptive.

But the new law already requires banks to give cardholders 45 days’ notice of any change in terms. So if your bank didn’t mail you a rate-change notice by January 7, 2010, you no longer face a doubling or tripling of your interest rate on your current balance—as long as you keep paying and don’t fall 60 days late. The Federal Reserve recently issued more than 1,100 pages of rules telling card issuers how to implement that new prohibition and other elements of the nation’s new credit card law, whose main terms take effect February 22.

If you’re a “convenience user” of credit cards—one of the four in 10 cardholders who pay off your bill each month—you’ll be less affected than those who carry a balance. But pay attention, anyway, because the new rules are forcing the card industry to reevaluate business models that for too long relied on tricks and traps to generate revenue. It isn’t yet clear how the card market will evolve, especially since this is playing out during the middle of a deep and painful recession.

Still, many of last year’s dire warnings don’t seem to be coming true. “Rewards” programs haven’t vanished, nor have annual fees suddenly become the norm. Average rates even dipped in November 2009, which the bankers called evidence that “issuers are working to keep rates down even in these tough times.”

In short, good customers still seem able to enjoy the benefits of paying with plastic without shouldering much more of the costs. And that’s unlikely to change, because of competition and also because of one of the basic dynamics of the credit card business: Since they also get lucrative fees from the companies that accept plastic payments, the last thing card issuers want is to steer you to start paying with cash or checks.

Highlights of the new rules include
-No rate increases on existing balances. The dirty little secret of what card issuers called “risk-based pricing” was that some of the best prices were offered to some of the riskiest customers. The trick was that they knew they could profit by offering lucrative deals to these customers because they could predict that some portion would soon be paying much more—often “default” or “penalty” rates topping 30%—on big balances.

Sometimes the new rate was triggered by a late payment of a few hours. Sometimes it was triggered by a late payment to another creditor. Sometimes it was caused by nothing more than a dip in a consumer’s credit score and contract terms allowing rates to be changed “at any time for any reason.”

What’s changed: Except for introductory rates, which must last at least six months, interest rates cannot be raised on existing balances except in rare situations, such as if a cardholder falls 60 days late.

-Faster payoffs for some borrowers. The new law also ends a trap sprung on cardholders who were lured by low-interest or no-interest balance-transfer offers but didn’t read the fine print. If they subsequently used the card for purchases carrying a higher rate, they soon found that they were accumulating interest no matter how much they paid each month. Card issuers would not allow them to pay off the purchases until the low-rate or interest-free balances had been fully paid. What’s changed: Starting February 22, any payment over the monthly minimum must go toward paying down the portion of the balance carrying the highest interest rate.

-No increases for the first 12 months. When it comes to new purchases, less has changed. You may still face an interest-rate increase based on triggers in your card contract- even for tardiness paying another creditor, the trap that came to be known as the “universal default.” But there are two key differences. The first is that since August 2009, you’ve been entitled to 45 days’ notice and the right to say “no, thanks” to new terms. The second is that, as of February 22, a card issuer cannot raise your rate during the first year an account is open, unless an “introductory rate” is expiring and the “go to” rate was plainly disclosed at the start. Of course, since card issuers can no longer apply new rates to old balances, opting out may no longer be the best solution, in part because the law allows the issuer to double your monthly minimum. You’d be better off if you simply quit using the card. But if the issuer imposes a new annual fee, opting out may be your only alternative.

-New billing and payment terms. Starting in February, your card company must mail or deliver your bill at least three weeks before your payment is due, and give you a consistent monthly due date. Payments must be credited if they arrive by 5 p.m. on the due date. And if that day falls on a Sunday or holiday, you’ll be entitled to an extra day.

-Over-limit charges. As of February 22, a card company has to ask whether you want it to approve charges that push you over your credit limit. If you say yes, the issuer can only charge you one over-limit fee per month. And if you opt out, it can’t charge you a fee if it allows such a purchase.

-Young borrowers. If you’re under 21 and want a credit card, you’ll now need to show that you have the financial resources to make payments, or obtain a cosigner.

-Big changes still ahead. This isn’t the last of the new credit card rules. By August 2010, the Federal Reserve has to decide how to implement two of the trickiest parts of the new law: its requirements that penalty fees be “reasonable and proportional,” and that card issuers who have raised customers’ rates since Jan. 1, 2009, reevaluate those rates to see if they should be reduced, and to do so at least every six months.

(c) 2010, The Philadelphia Inquirer.

Distributed by McClatchy-Tribune Information Services.

Good afternoon.  Thank you for your interest in what’s happening in city government. You will receive news briefs about once a month, along with links for more detailed information.

Thw following is a snapshot of a few major projects just completed or almost completed by the city of Wilmington for our January 2010 update:

Independence Boulevard Widening

The city has begun to widen a two-mile portion of Independence Boulevard from Shipyard Boulevard to Carolina Beach Road. This $4.67 million project includes widening the road from two to four lanes, updating the traffic signal systems and building a multi-use path and bike lane. The project is scheduled to be completed in August 2010. The road is being widened to help alleviate traffic on the heavily congested South College Road. The project is funded by the 2006 Transportation Bond and city capital project funds.

Museum Drive Extended

Another part of the project that has already been completed is extending Museum Drive to Independence Boulevard, making it easier for visitors to get to the Cameron Art Museum and for Pine Valley residents to get to Independence Boulevard. A ¾-mile section of the Cross City Trail that will connect the trail from Museum Drive to Halyburton Park is also being built in the area using federal stimulus funds.

Front Street Improvement Project

The Front Street Improvement Project began earlier this month. The $1.8 million project will replace aging water and sewer pipes and enhance the streetscape with new sidewalks, crosswalks and landscaping in a two-block area of Front Street between Market and Chestnut streets.

The project is a joint effort between the Cape Fear Public Utility Authority and the city and is expected to be completed in July, 2010. Businesses and sidewalks will remain open throughout the project. Click here to learn more about this project.

Next year’s budget

Like many citizens, the city continues to struggle with falling revenues from the slow economy. Over the last two years, the city has cut $8 million and dozens of vacant job positions – with no layoffs or tax increase. We expect another shortfall of at least $5 million this year and are now taking a hard look at priorities for next year.

By law, the city must have a balanced budget in place each year by June 30. Our fiscal year starts in July, so we are just over halfway through this fiscal year and are starting to plan for next year’s budget. Although we don’t yet have a clear picture of next year’s financial outlook, we will keep you informed as we know more. Our focus will continue to be providing core services. Click here to learn more about the city’s budget.

Click here to view the city’s current adopted budget.

RISMEDIA, January 23, 2010—By now it is well documented that today’s affordable housing prices, historically low interest rates and federal home buyer tax credit have combined to create one of the most attractive first-time buyer markets in recent memory. What many Americans might not realize is that a recent expansion of the buyer tax credit has created an equally desirable opportunity for existing homeowners.

This past November, Congress elected to expand the home buyer tax credit to repeat buyers after seeing the success the temporary financial incentive had on the housing market and overall economy. As a result, current homeowners who will have lived in their home for 5 consecutive years out of the last 8 may now be eligible to receive a $6,500 tax credit.

“The expanded tax credit offers a great financial opportunity for existing homeowners, particularly those looking to trade up,” said James M. Weichert, president and founder of Weichert, Realtors, one of the nation’s largest independent real estate companies. “Not only can you receive a large sum of money from the government, you’ll also likely purchase your next home for less money and at a lower interest rate than you could have in years past or years to come.”

To qualify for the tax credit, the repeat buyer must have signed a binding contract by April 30, 2010 and close on the home by June 30, 2010. Tax credit eligibility is subject to income limits, $125,000 for single buyers and $225,000 for couples. In addition, the sale price of the home being purchased can not exceed $800,000.

There is no requirement that existing homeowners must have sold their home to be eligible for the $6,500 tax credit. However, Weichert encourages existing homeowners who want to benefit from this incentive to move quickly, particularly those who prefer to first sell their current home before purchasing a new one.

“Typically, it takes three months or longer to sell a home. That’s why it is critical repeat buyers put their home on the market right away. Otherwise they might not leave themselves enough time to both secure a buyer for their current house and find a new home by the April 30 deadline,” added Weichert.

RISMEDIA, January 12, 2010—(MCT)—If you’ve weathered this past year’s wallet-squeezing, here’s some how-to advice for keeping more money in your pocket now that the New Year has arrived.

Use, don’t lose, those new gift cards. In California, most gift cards cannot have expiration dates or fees, unless clearly stated on the card itself. But if a store goes bankrupt, or if the card is issued by a mall or a bank, your card could be subject to service fees and expiration dates. Another money-saving tip: If your gift card balance is below $10, you can receive it in cash.

Guard against “free trial” offers that stealthily set you up for automatic debits or credit card charges. According to consumer warnings from the Better Business Bureau, Federal Trade Commission and Visa Inc., some companies offering free trials—on everything from colon cleansers to debt reduction plans—also create automatic deductions for special “services” or subscriptions. Read the fine print before opting for any “free trial” offers.

Calculate how quickly you can pay off credit card debt, especially after holiday spending. Use an online credit card calculator, such as at bankrate.com or credit.com. According to the California Society of CPAs, if you’ve got a $5,000 balance with an 18% interest rate and make only monthly minimum payments, it will take 12.5 years to pay off the card. And you’ll pay $2,916 in interest. If you get a year-end gift or bonus, consider applying it to your January balances.

Reduce your cell-phone bill. Eliminate services you don’t need or want: insurance, roadside service, ring tones, texting. Or if you or your kids are continually hit with too many fees for text messages, switch to an unlimited plan. Don’t use your cell phone much? Consider switching to a prepaid phone.

Sweep up energy savings. Just a few household changes can save hundreds of dollars a year. If you replace 20 household 100-watt light bulbs with 27-watt fluorescent bulbs, you’ll save $277.30 a year, according to SMUD (Sacramento Municipal Utility District). Shorter showers can save, too. A family of three dropping shower times from 17 minutes to 11 can save $100.20 a year, not to mention conserving gallons of water.

Say thanks to all the new federal tax breaks, including those for purchasing a home, buying a car, paying college expenses or adding household energy improvements. “There’ve been a lot of things loosened up for consumers this year,” said John Hogg, who oversees 16 Jackson-Hewitt tax preparation offices in Sacramento. “Many of these credits have never been available before; others, like the new home buyer’s credit and college tuition credits, are worth more this year than last. If people take advantage of these, their tax liability could be significantly less for 2009.”

The first-time home buyer’s credit increased to $8,000 and was extended to April 30, 2010. Existing homeowners who haven’t purchased a home in the last three years can get a maximum $6,500. The tax credit for college students has been extended to a full four years and up to $2,500 annually, including textbooks. The vehicle sales tax deduction applies to any new purchase made by Dec. 31 this year.

For families, there’s also the child-tax credit and the earned income tax credit (EITC) for low- income households. For instance, a married couple with three children and family income of $22,000 could qualify for a federal refund of more than $9,000 through the combined credits. Due to layoffs and furloughs, many families with reduced incomes may qualify for the first time this year, Hogg said.

Stay healthy: That’s one of the surest ways to save. And if you have a flexible spending account through your employer for health care expenses, don’t forget to submit your receipts for reimbursement by Dec. 31 or your company’s deadline. If you fill out the correct paperwork, you’ll get a nice check in the mail.

Ignore unsolicited e-mails, calls or letters asking for personal financial information. Phony messages pretending to be from the IRS, FDIC and your bank can siphon money faster than you can click open their fraudulent online messages.

Laugh: We’ve all made spending bloopers. If you want to share yours or ogle those of others, go to www.spendster.org, the “online confessional for bad spending.” Sponsored by the National Endowment for Financial Education, it’s a lighthearted look at how we can learn from our mistakes.

(c) 2009, The Sacramento Bee (Sacramento, Calif.).

5 Questions to Consider Before Purchasing a Home

By Mary Ellen Podmolik

RISMEDIA, December 15, 2009—(MCT)—Interest rates on the benchmark 30-year, fixed-rate mortgage dipped to a 38-year low recently, giving consumers another reason to consider purchasing a home or refinancing their current one.

Freddie Mac recently stated the average rate on a 30-year loan was 4.71% with an average 0.7 point, the lowest rate since the agency began its weekly tracking of long-term interest rates in 1971. A point is equal to 1% of the loan amount, payable as a lump sum at closing. While the decline wasn’t overly dramatic, the dip is likely to get people wondering whether it’s time to sign on the dotted line.

The 5 following questions may help you decide if now is the time to go ahead and purchase a home or refinance your current home.

Q: Why are rates so low?
A: Since early January, the Federal Reserve has been purchasing mortgage-backed securities guaranteed by Fannie Mae, Freddie Mac and Ginnie Mae in an effort to stabilize the housing market by making homes more affordable for consumers. The Federal Reserve Bank of New York, which is managing the program, plans on purchasing $1.25 trillion of securities.

Q: Are rates expected stay this low?
A: It’s hard to tell, but don’t count on it because the lending landscape is likely to change next year. In September 2009, the Fed said it would gradually wind down the purchase program, ending it by March 30, 2010. That has some in the mortgage lending industry worried.

In a recently published mortgage survey, more than 60% of Bankrate.com’s panel of experts predicted that rates will move higher over the next 30 to 45 days. How much higher is anyone’s guess. Last year at this time, the average 30-year, fixed-rate mortgage was 5.53%.

Q: Why do different mortgage surveys come up with different average interest rates?
A: It depends on which lenders are in their sample, when the survey was taken and whether the rates quoted are the posted rate, the application rate or the commitment rate. Also, some surveys take into account the points paid to secure the rate.

But regardless of the survey, the general consensus is that rates are ultra-low right now and may be the lowest the market will see.

Q: What else does a consumer need to know?
A: The lowest rates are offered to the most credit-worthy customers who can make sizable down payments. Shop not just for the interest rate and the points involved but also for the fees involved, which can vary widely from one lender to another.

If you’re refinancing, remember the bigger the loan, the greater the payoff for finding a lower interest rate. Savvy customers put in their paperwork with a lender and set a “strike” interest rate at which to lock in the loan, a good move considering rate volatility.

Several refinancing calculators are available online that let borrowers plug in all the required numbers and determine the monthly savings and how long it will take to recoup the expense of a refinancing.

Q: So is now the best time to buy a home?
A: It depends on personal situations. Homebuyers certainly have a lot of factors working in their favor right now—low interest rates, plenty of marked-down homes for sale and an extended and expanded federal tax credit that will expire in the spring.

On the flip side, there’s growing sentiment among analysts that housing prices, which are showing ever-so-minor improvement, may fall further. The reason? Lenders are expected to get better at determining which borrowers will qualify for loan modifications. That means lenders also will get faster at moving homes through the foreclosure process.

Mark Zandi, chief economist at Moody’s Economy.com, recently predicted that housing prices nationally will hit bottom in 2010’s third quarter. That means anyone buying a house now could see the value of their investment initially depreciate.

(c) 2009, Chicago Tribune.

Distributed by McClatchy-Tribune Information Services.

RISMEDIA, December 12, 2009—Looking for fast, free ways to save on energy around the home this winter? According to Tom Kraeutler, host of the nationally-syndicated home improvement radio show, The Money Pit, there are many common-sense things you can do everyday in your home to lower energy bills.

Tip #1 – Lock your windows. Don’t just close them, but lock them to create an airtight seal that keeps out air leaks and drafts.

Tip #2 – Plug power-draining computers and electronic equipment into a power strip with a switch, so they can all be easily turned off when not in use.

Tip #3 – Turn off lights when leaving a room.

Tip #4 – Get free solar heat by opening the blinds and shades during the day.

Tip #5 – Chill out and do your laundry in cold water.

Tip #6 – Add a sweater and lower the thermostat. For every degree you lower your thermostat, you may be able to save 5% on heating costs.

Tip #7 – Run only full loads in your dishwasher.

Tip #8 – Remove lint often from your clothes dryer and its outside vent. And, run your dryer in the evening, when the extra heat helps warm your house.

Tip #9 – Close the doors (and the heating vents) in rooms with minimal use, like walk-in closets, laundry rooms and guest bedrooms, to reduce heat use in those areas.

Tip #10 – Snuggle up under more blankets at night and turn your heat down lower to reduce energy costs.

“Small things can add up to big energy savings in the home,” says Kraeutler. “You’ll be surprised to find your energy bills dropping by 20, 30 or more dollars each month when you consistently make the effort.”

For more information, visit www.simonton.com.

RISMEDIA, December 11, 2009—Trulia, Inc., a real estate search site, has announced that 22% of homes currently on the market in the United States as of December 1, 2009 have experienced at least one price cut, the lowest level since Trulia started tracking price reductions in April 2009. The total amount slashed from home prices also dropped from $28.1 billion in November to $24.7 billion in December, representing a 12% decrease. The average discount for price-reduced homes slightly increased to 11% off of the original listing price compared to 10% in the previous four months. The number of listings on Trulia also decreased by 9% from the previous month.

South Reports Least Amount of Homes Reduced
The South has the lowest levels of price reductions, with 19% of current listings experiencing at least one price cut, a 21% decrease from the previous month. Kentucky, Louisiana, Arkansas Oklahoma and Mississippi are all seeing less than 15% of listings with price reductions. (Regions according to the U.S. Census Bureau)

-South – 19% of listings with price reductions
-West – 20% of listings with price reductions
-Midwest – 22% of listings with price reductions
-Northeast – 25% of listings with price reductions

“We saw some of the highest levels of reductions last month, as home owners raced to sell their homes in advance of the November 30 expiration of the tax credit,” said Pete Flint. “We are now seeing fewer reductions at the low end of the market as those sellers are increasingly in sync with market prices. With the expansion of the tax credit to repeat home buyers and extension to April 30, we expect to see an increase in price reductions at the higher end of the market in the first quarter of 2010.”

For the first time since Trulia started tracking price reductions in April 2009, one major U.S. city has reached 40% of listings with price reductions- Minneapolis. This is the second straight month that Minneapolis has held the top spot for highest percentage of price reductions.

Cities experiencing significant increases in percentage of listings with price reductions from June 2009 to December 2009 include:
-Kansas City, MO – 40% increase in price reductions
-Omaha, NE – 39% increase in price reductions
-Houston, TX – 32% increase in price reductions
-Minneapolis, MN – 29% increase in price reductions
-Arlington, VA – 28% increase in price reductions

Cities showing signs the highest percentage of declines for listings with price reductions from June 2009 to December 2009 include:
-Las Vegas, NV – 30% decrease in price reductions
-San Jose, CA – 30% decrease in price reductions
-Long Beach, CA – 25% decrease in price reductions
-Honolulu, HI – 23% decrease in price reductions
-Albuquerque, NM – 22% decrease in price reductions

Luxury Market Still Hardest Hit
Luxury homes (those listed at two million dollars and above) continue to bear the brunt of discounts being offered with an average of 14% being slashed from the original asking price compared to 10% for homes listed under $2 million. Additionally, luxury homes represent less than 2% of all current listings on Trulia, but are responsible for 26% of the $24.7 billion in home price reductions.

For more information, visit www.trulia.com.

7 Ways to Take Advantage of the Extended Tax Deduction

RISMEDIA, December 9, 2009—Look who got an early holiday present—Realtors and the rest of the folks interested in buying and selling homes.

Hats off to the National Association of Realtors (NAR) and its lobbying efforts for bringing us fantastic news out of Washington, D.C.–lawmakers have extended the homebuyer tax credit to April 30, 2010. And they’ve sweetened the deal: the law increases the limit for couples to $225,000 in annual income, roughly $55,000 more than the existing law.

Plus, it adds a nice $6,500 carrot for those who’ve lived in their homes for five of the prior eight years to buy up or buy elsewhere. I believe this will move houses at both the lower and higher ends as well.

This news is a perfect opportunity for Realtors to capitalize on several levels:

1. Stand out from the crowd – Many Realtors take a break near the end of the year. If you choose to keep working, you’ll not only stand out from the crowd, you’ll be able to get the most out of the extension and improve your bottom line.

2. Enjoy a faster “slow season” – I have little doubt that the typical “slow season” between November and February will be much livelier than in years past because of the tax deduction being extended. It’s beginning to sink in with home buyers that this incentive is something they can’t afford to ignore. NAR says two million people benefitted from the first go-around of the tax credit.

3. Get busy with past customers – Pull up your database of past customers who’ve been in their homes for five years and send direct mail (followed up with the all-important phone calls) to them explaining this new $6,500 expansion of the deduction and how you can help them.

4. Continue your online social networking – Remember, typical first-time home buyers are younger and participate in this online social beast that’s taken over the way they get their news, communicate with friends and learn about goods and services they’re interested in.

5. Become the expert with seminars – Anytime change happens, consumers develop an appetite to learn about those changes. Develop short seminars for first-time buyers and homeowners who have lived in their current home for five years to position yourself as the authority.

6. Energize your buyer presentation – The name of the game is urgency, so give your buyer presentation more zip by adding a strong sense of urgency to it. Right now, I’m giving my clients a buyer’s guide and they use it to create their own customized buyer’s presentation. It usually lasts between 30 and 45 minutes–just like a listing presentation, but scripted specifically to make buyers realize they need to act now to profit from this extension.

7. Unearth additional motivations to buy – Yes, this tax break is an obvious reason to buy now, but don’t forget to ask questions to learn other factors that may be motivating potential buyers to buy. The more you know about your buyers, and specifically why they want to buy, the better you’ll be at meeting their needs.

Now is the time to act because we don’t know if Congress will extend the deduction a third time. My guess is no. I believe lawmakers and economists expect natural market forces to take over in the busy season in the spring of 2010 without the incentives.

So get moving. Send me an e-mail (Bob@CorcoranCoaching.com) for more ways to continue to make this extension work for you. Sign up TODAY for your complimentary business consultation. http://www.CorcoranCoaching.com/bpw.php.

Bob Corcoran is a nationally recognized speaker and author who is founder and president of Corcoran Consulting Inc. (CorcoranCoaching.com, 800-957-8353), an international consulting and coaching company that specializes in performance coaching and the implementation of sound business systems into the residential or commercial broker or agent’s existing practice.

For more information, visit www.CorcoranCoaching.com.

Banks Again Offering Home Equity Lines

Now might be a good time for homeowners who still have plenty if equity in their home to tap into it.

Lenders are again writing home equity lines of credit, says MortgageBot, which processes real estate loans.

Homeowners with more than 20 percent of equity in their homes may find the HELOC a better source of emergency cash than a credit card as long as they don’t exhaust their equity.

Source: CNNMoney.com, Linda Stern (12/14/2009)