Second Act Successes
Whether
it's to maintain mental sharpness, keep healthy social connections, or bulk up
the nest egg, many people are opting not to retire at the traditional age of
65.
Yet not
all are sticking with the corporate grind. Instead, they're making
later-in-life career switches to the entrepreneurial life.
Honoring innovation
Nearly two in three people (64
percent) see the next stage of life as a time to keep working, with nearly
equal numbers saying it’s a time to use their skills and experiences to help
others in paid or volunteer positions (31 percent) versus a time to simply
cover expenses and maintain health insurance (33 percent). That's according to
research (www.encore.org/files/2011ResearchHighlights.pdf)
conducted by Civic Ventures, a San Francisco, Calif.-based think tank focused
on baby boomers, work, and social purpose.
Most
interesting are those who create their own jobs by launching ventures aimed at
solving social problems in their communities and elsewhere. Each year for the
last six years, Civic Ventures has
recognized such entrepreneurs with its Purpose Prize® .
The prize honors those over the age
of 60 who have found a way to marry their passions and interests with social
good. One aim is to illustrate that
innovation isn't the "sole province of the young."
In
November, Civic Ventures named its five 2011 winners. Prize winners gain
recognition and each receives $100,000.
Solutions to pressing social
problems
If you've
been thinking about what to do with the second half of your career life, take
some inspiration from some of those winners. They spotted needs and figured out
how to address them.
Their ventures are extremely varied and include a woman who found
a way to deliver an array of services, such as infant care and preschool programs, to Chinese orphans.
Another helps people
seeking second careers by developing training, mentoring, and internships for
people over the age of 50.
Still another is focused on lowering the
environmental impact of buildings.
Re-tooling
"While Purpose
Prize winners are helping to solve a wide range of pressing social problems,
they have one thing in common,” said Marc Freedman, Civic Ventures' CEO and founder “They – and millions of others
in encore careers – are turning personal passions and decades of experience
into invaluable contributions across sectors, continents and generations, often
through entrepreneurship.”
Freedman also wrote The Big Shift: Navigating
the New Stage Beyond Midlife, a book that discusses encore careers and the vast contributions
that those who are in the second stage of life can make.
Inspired?
The Civic Ventures site, www.Encore.org, offers tremendous
insight for blooming entrepreneurs. For details and guides from Civic Ventures,
along with a host of other career-related advice, see "Resources"
below.
Resources:
Emerging career fields--Civic Ventures identifies the top five encore
career fields (www.encore.org/work/top5),
along with information
on potential jobs in the field, the training needed, and ways to prepare for a
new career. Those top fields are:
- Education
- Health care
- Environment
- Government
- Nonprofit
Job information and sites--If
you're looking for a new job or researching a new career with a social purpose,
see www.commongoodcareers.org, www.idealist.org, and http://retirementrevised.com/retirement-jobs. Also, Encore.org,
http://www.encore.org/work/find features tools to help you plan for the next career
by delivering advice on networking, fine-tuning your resume, and preparing for interviews.
2012 Purpose Prize--Know someone worthy of the
receiving the Purpose Prize? The nomination forms for and information on the
2012 awards are available at www.encore.org/prize/nominate.
The deadline is March 22, 2012.
Don't say this
As you're redesigning your resume and online profiles, LinkedIn
has a word to the wise. The career networking site just released the most used
descriptions among its users.
So if you're looking to distinguish yourself, you may want to
avoid the hackneyed buzzwords and vapid phrases everyone else is using.
The no-nos are:
-Creative
-Organizational
-Effective
-Extensive experience
-Track record
-Motivated
- Innovative
-Problem solving
-Communication skills
-Dynamic
People likely are still weary of the
words from the 2010 list, so it's probably not a bad idea to avoid those too. "Extensive
experience" made it to both the 2010 and 2011 lists.
The other big 2010 buzzwords were:
-Innovative
-Motivated
-Results-oriented
-Dynamic
-Proven track record
- Team player
- Fast-paced
-Problem solver
-Entrepreneurial
Angie Shull, Seniors Real Estate
Specialist
REMAX Property
Centre
1134 W Granada
Blvd Ormond Beach, FL 32174
386-295-9605
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By BOB KOSLOW, BUSINESS WRITER 
Home sales rose 6 percent across the Volusia-Flagler area in December compared to a year ago, even as sales statewide fell, ending the local housing market's year of transition on a high note.
Realtors in Volusia and Flagler counties sold 764 existing single-family homes in December -- the most sold in a single month in the two-county area since July, when 766 were sold, the Florida Realtors association reported Friday. However, the median price of homes sold remains lower than a year ago.
The association does not track sales of new homes.
December marks the sixth consecutive month that the number of homes sold in the combined Volusia-Flagler area were up compared to the same month the previous year.
"I think we're in a good little pocket here," said Travous Dever, a sales agent with The Keyes Company and president of the New Smyrna Beach Board of Realtors. "We're starting the new year with good news. We're busy, people are here looking and buying and the prices are reasonable. All combined, people are getting a great value."
While home sales have continued to climb locally, sales of existing homes for the state as a whole last month declined 2 percent, compared with the number sold in December 2010.
In the Volusia-Flagler area, Flagler County Realtors say they led the regional increase. Their records show them selling 161 homes last month, up 12.6 percent from the 143 sold in December 2010, according to a Florida Realtors association breakdown. On the other hand, Volusia County's three associations posted declining sales numbers for December: 12.6 percent down in New Smyrna Beach, 10.4 percent in Daytona Beach and 1.7 percent in West Volusia.
"Flagler activity is picking up. The investors are coming back," said Carmen Bongiovanni, a sales agent with Watson Realty Corp. and president of the Flagler County Association of Realtors. "Prices are down and the loan rates are at record lows. It's the perfect storm."
The median price -- where half sell for more and half for less -- of a home sold in December in the two counties was $108,000. That's down 2 percent from the $109,700 median sale price a year ago. However, it's up from November's $102,000, the lowest median sale price since June 2001.
"It's low, but it doesn't worry me. We're selling more than we were and that brings down inventory. We're at the point where people see they have to move now to buy and that will bring prices back up," said Sandy Alford, a sales agent with Swann & Associates and president of the West Volusia Association of Realtors. "The drop (in median prices) has stopped at the bottom now, but the rise will not be fast and that's good. We need a slow, steady and strong climb up."
For 2011, local Realtors sold 9,010 existing houses. That's up 8 percent from the 8,488 houses sold in 2010. The median sale price fell 7 percent to $110,400 from $119,100 in 2010.
December sales of existing condominiums rose 15 percent to 157 units from 137 a year ago. It's the third consecutive month of year-over-year increases. Daytona Beach agents set the pace selling 88 units, up more than 11 percent from a year ago.
The condo median sale price in December rose 4 percent to $115,00 from $111,000 a year ago. It's also higher than November's median sale price of $105,000, the lowest since Florida Realtors broke out condo sales in 2006.
Local condo sales for 2011 totaled 1,953 units, up 5 percent from the 1,857 units sold in 2010. The median sale price rose 7 percent to $131,900 from $123,000 in 2010.
The decline in sales of existing single-family homes and condos last month in the Volusia-Flagler area marked a slight reversal of the trend that had been developing so far this year.
Area home sales
at a glance |
| Here are the latest monthly sales numbers for existing homes and condominiums in the Volusia-Flagler area. |
| Year | Homes | Condos |
| June 2011 | 867 | 186 |
| May 2011 | 900 | 196 |
| June 2010 | 906 | 202 |
| SOURCE:Florida Realtors |
DAYTONA BEACH -- Sales of homes and condominium units slowed last month in the Volusia-Flagler area.
While the home median sale price fell locally in June, condo prices exceeded year-ago prices for the third time this year.
The decline in sales of existing single-family homes and condos last month marked a slight reversal of the trend that had been developing so far this year with sales volumes increasing and median home prices continuing to dip.
But last month's year-over-year decline in sales volumes could in part be because last June was when home sales peaked in 2010 as homebuyers rushed to qualify for a federal income tax credit program that expired at the end of that month.
The national incentive program required a contract be signed by the end of April last year. Homebuyers had until June 30, 2010 to close the deal to receive the tax credit.
"This is exactly the pattern of bumping along the bottom that we've been talking about the past couple of months," said John Leitschuh, a Realtor with Adams, Cameron & Co. Realtors in Ormond Beach.
"We may have turned a corner, but the gas pedal still has a lot of play in it and naturally we'd all like to go faster," said Leitschuh, who also is this year's board president for the Daytona Beach Area Association of Realtors.
The median price -- where half sell for more and half for less -- of condo units sold in the Volusia-Flagler area last month was $144,300, according to a Florida Realtors association report released Wednesday. That's up 10 percent from the median sale price of $131,700 in June 2010. It's the second consecutive month of year-over-year increases and the highest monthly median sale price for the two-county area since December 2009 when it hit $158,000.
"One month might be a blip, but three has put a grin on my face," said Ellen Darden, a Realtor with Watson Realty Corp. who specializes in condo sales.
Darden is also president of the New Smyrna Beach Board of Realtors.
"Buyers have the sense that prices have hit rock bottom, and there is a sense of urgency. We saw prices skyrocket before and buyers do not want to miss this window of opportunity. Many are buying with cash, seeing a good investment," she said.
The rising condo prices last month did dampen the number of sales, which fell below last year's sales figures for the first time this year. Area Realtors sold 186 condo units in June, down 8 percent from 202 a year ago, but still above the 2011 monthly average of 170. Of the four Realtor associations in the area, only the Flagler County Association of Realtors reported an increase in condo sales among its members to 43 in June from 31 a year ago.
For the first six months of this year, 1,035 existing condos have changed hands in the two counties compared to 940 last year.
"Sellers are holding tight, but the buyers are still coming and want the product," said Lynn Byrne, a Realtor with CenterPointe Realty in Ormond Beach. "For those who have been thinking about buying for a long time, they realize we are at or near the bottom."
Prices are also being pushed up because a new condo has not been built in three years and it may be another two to three years before another is started, officials said.
Sales of existing single-family homes in the Volusia-Flagler area declined 4 percent to 867 in June from 906 a year ago. That broke a five-month steak of better year-over-year sales figurers compared with last year, which was assisted by the federal tax credit.
Again, only Flagler County's Realtors association posted an increase of the area's four Realtor groups: 183 homes sold last month, up from 169 a year ago.
Through the first six months of this year, 4,688 homes have been sold compared to 4,577 during the same time last year.
The median price of existing homes sold in the two-county area in June was $114,700, down 8 percent from $125,200 in June 2010.
"I am busier than I have been in a long time, writing more offers," said Sandy Alford, a Realtor with Swann & Associates in DeLand. Alford is president-elect of the West Volusia Association of Realtors. "We've also seen pending sales here increase 43 percent in June, which points to increased activity."
The National Association of Realtors on Wednesday reported that many pending contracts for homes nationally were being cancelled because banks will not loan enough to meet the sales offer and are holding tight to high loan qualifying standards.
Cancelled contracts have not been an issue in the Volusia-Flagler area, Leitschuh said. Likewise, while 2011 is on track to be the worst year for home sales nationally in 14 years, so far that has not been the case locally, despite last month's declines.
By BOB KOSLOW, Staff Writer
WASHINGTON – Nov. 19, 2010 – Florida still leads the nation in the percentage of homeowners who are “seriously delinquent” on their loans, the Mortgage Bankers Association said Thursday.
In the state, 19.52 percent of borrowers were either 90 days past due or in foreclosure in the third quarter. Add in borrowers who are 30 and 60 days late, and nearly one in four Floridians are behind on their loans.
The good news is that Florida’s seriously delinquent rate is down from 20.13 percent in the second quarter. But no other state met Florida’s lofty level of late payers. Nevada was No. 2 at 17.83 percent, while Illinois’ 10.77 percent ranked third.
With Florida’s job market still weak and home prices way down from a few years ago, it’s no surprise that the state’s delinquency rates are so high, said Jack McCabe, a real estate analyst in Deerfield Beach.
“With 48 percent of the state’s homeowners underwater, we’re going to continue to see delinquencies go up,” McCabe said. “The truth is a lot of people have given up and have stopped paying their mortgages.”
Part of the blame lies with the way foreclosures are handled in Florida, said Michael Fratantoni, the Mortgage Bankers’ vice president of research and economics. Florida and other states where foreclosures go through the courts have foreclosure inventories that are twice as high as so-called non-judicial states, he said.
Of course, the court system is only partly to blame for Florida’s delinquency problem. The bigger culprits are a withering collapse in prices and an 11.9 percent jobless rate that’s well above the national unemployment rate of 9.6 percent.
Nationally, the delinquency rate fell, too, which the Mortgage Bankers Association attributed to modest improvements in the job market. The foreclosure freeze at some lenders hasn’t played a role in falling delinquencies.
“The foreclosure paperwork issues announced by several large servicers in late September and early October are unlikely to have had a large impact on the third-quarter numbers,” Fratantoni said.
Copyright © 2010 The Palm Beach Post, Fla., Jeff Ostrowski. Distributed by McClatchy-Tribune Information Services.
MIAMI – Nov. 19, 2010 – When Efrain Hernandez couldn’t seal a deal before the first-time homebuyer tax credit expired earlier this year, he lost faith that he would ever own a house in a market where investors and all-cash buyers are snapping up bargains and mortgages seem hard to come by.
But waiting – even though it wasn’t by choice – got him more than the $8,000 federal tax credit.
In a single day last month, Hernandez negotiated a contract on a five-bedroom, three-bath home in a development near Homestead, Fla. By the end of October, he closed, talking homebuilder Lennar into a $40,000 discount off the list price, getting it to pay $18,000 in closing costs and scoring a $7,500 no-interest loan from Miami-Dade County to lighten his downpayment.
“I was finally able to buy the house of my dreams,” Hernandez said. “Even though the tax credit was over, it ended up being a better deal.”
While cash is king when it comes to buying properties in a battered housing market, new homeowners like Hernandez are finding ways to finance their homes using hard-nosed negotiation tactics and unusual financing options they never needed during the boom.
And they are scoring deals on homes – not bedraggled or cut-rate foreclosure properties and time-consuming short sales, but well-kept homes with current mortgages.
After a long drought, more money is becoming available to buy homes. Take Wells Fargo Home Mortgage, for instance. Andre Brooks, vice president and regional sales manager for the bank’s Florida operation, said his company has made more than $3 billion in mortgages so far this year in Florida, nearly 20 percent more than last year.
But lending guidelines remain restrictive, said Terry H. Francisco, spokesman with Bank of America. Unlike the loose-money days of the real estate boom, people must painstakingly document their creditworthiness.
Making purchases happen now often requires creativity and calculation.
“Creative financing is about to become the primary means of financing,” said Joe Manausa, a broker and owner of a Century 21 First Realty in Tallahassee, Fla., who has blogged about the topic.
One fruitful financing option is a loan backed by the Federal Housing Administration. FHA loans can require a downpayment of just 3.5 percent compared with the much larger upfront investments many banks require.
FHA loans do have their limitations. For one, like other loans with a downpayment below 20 percent, these require the buyer to get mortgage insurance.
Another limiting factor: FHA loans have a maximum limit. They are available to people who don’t already have an FHA loan and plan to make the property their primary residence.
A private loan – made by a noninstitutional investor who does not advertise himself or herself as a mortgage lender – is another alternative, but requires some networking and using personal relationships to make a connection.
Grant S. Stern, president of Morningside Mortgage Corp. in Bay Harbor Islands, brokered a loan this summer for a condo buyer, financing half the purchase price.
The borrower had made a preconstruction downpayment of $90,000 on a two-bedroom, two-bath $300,000 condo in Sunrise, Fla. He had another $65,000 cash to close, but during the lending process, Fannie Mae’s approval for the project expired.
Stern said he learned that the developer was on the verge of default, and that his client’s money was in jeopardy if he didn’t close the deal quickly. There wasn’t enough time to get a conventional bank loan, so Stern arranged for a real estate investor to fund a five-year, fixed-rate loan in a hurry.
“They said, ‘Close in one week.’ We closed in one week,” he said.
The borrower, a 35-year-old wholesale electronics distributor with good credit, could conceivably arrange a more conventional refinance in the future.
“If this is the only way you are going to close, then it’s a really good option,” Stern said.
Part of real estate agent Gene Mastro’s strategy for buyers is avoiding foreclosures and short sales – especially for those buyers who intend to live in the properties they purchase.
Owners of nondistressed properties are “more ready to correct problems, any minor deficiencies,” said Mastro, who works for Coldwell Banker in Miami-Dade.
Another advantage: Sellers may be willing to pay all or part of closing costs, which can range from 2 percent to 7 percent of the purchase price.
Dilihara Martin said Mastro negotiated a seller’s contribution for closing costs on a home she bought near Kendall this month. The 1,700-square-foot home sits on nearly a quarter-acre.
Martin, 25, said the new place will be a nice change for her, her husband Julio and 6-month-old daughter Isabella, who have been living with her parents.
“He managed to negotiate down to $200,000 and we got a 3 percent seller’s contribution on top of that,” said Martin, an accountant. “He fights for you.”
Another client, Daniel Diaz, closes later this month on a three-bedroom, two-bath home in Kendall, Fla. The price is $150,000. Though Diaz, 28, said he’s a saver, he doesn’t have enough put away for a 20 percent downpayment, so he opted for an FHA-backed loan.
The sellers will contribute 4 percent of the home’s purchase price toward closing costs, said Diaz, who manages a Sports Grill.
“I had no idea about this,” he said. “Gene’s been educating me along the way.”
Another way to cover closing costs is a fast, short-term loan that doesn’t show up on credit reports.
Todd Hills noticed that some of the recent users of his company, Boomerang Lending, wanted fast cash to pay closing costs. His Colorado-based business works like a pawn shop for those with pricier assets, including paintings and fine jewelry. A recent borrower offered a 1955 Picasso sketch.
“It’s not something we’ve experienced before the last six months,” said Hills, the company CEO, but “it makes absolutely perfect sense. This is a way this consumer can get the cash that they need.”
A Texas woman who recently needed an additional $3,500 to pay closing costs sent the company several pieces of jewelry. They gave her the money, and she was able to close.
“They get their house deal done, then they have six months to make the determination about whether they want to come back and retrieve their asset,” Hills said.
Yet another possibility for buyers is a lease-to-own option, Manausa said. “It’s a purchase agreement with a very delayed closing – three months or three years.”
Tom Nisbet and fiancée Greta Leber have just such a contract on their condo. They are living in the 1,600-square-foot unit they hope to buy. It comes with two parking spaces, a pool and a gym, and it’s close enough to the University of Miami, where Leber is working on her Ph.D.
After watching others’ experiences with short sales and foreclosures, they steered clear. “This is by far the best place we saw on the market,” Nisbet said.
© 2010 The Miami Herald. Distributed by McClatchy-Tribune News Service, Nirvi Shah, Ina Paiva Cordle and Toluse Olorunnipa.
Mortgage rates jump to 4.39% as Treasurys rise Mortgage Rate Trend Index
Don’t expect any mortgage rate change over the short term, say half the industry experts polled by Bankrate.com this week. If rates do change, 36% expect further increases; only 14% said rates might fall.
NEW YORK – Nov. 19, 2010 – Rates on fixed mortgages jumped from their lowest levels in decades this week.
Mortgage buyer Freddie Mac said Thursday the average rate for 30-year fixed loans rose to 4.39 percent from 4.17 percent, the lowest level on records dating back to 1971. The 15-year loan also climbed to 3.76 percent from 3.57 percent, the lowest since that survey began in 1991.
Rates rose because Treasury yields climbed to their highest level since July. Mortgage rates tend to track those yields.
The yields rose mostly because traders dumped Treasurys they bought up before the Federal Reserve announced its $600 billion bond-buying program to spur the economy. Republican economists and lawmakers have criticized the Fed program, saying it could lead to runaway inflation. Those fears have led investors to sell their bonds.
Before last week, mortgage rates had been at or near historic lows since April as investors, worried about the economy, shifted money into the safety of U.S. Treasurys. Mortgage rates fell to their lowest point as traders snatched up Treasurys ahead of the central bank’s announcement.
The recent jump in rates rippled through the mortgage market. The number of people filling out mortgage applications slumped last week, the Mortgage Bankers Association said Wednesday. Purchase applications dropped by 5 percent from the previous week, while refinance applications tumbled 16.5 percent.
While refinancing activity got a boost, low rates did little to buoy the struggling housing market. Potential buyers are worried about their jobs or unable to qualify for a loan because of tighter credit standards. Others can’t sell their own homes before buying another.
To calculate average mortgage rates, Freddie Mac collects rates from lenders across the country on Monday through Wednesday of each week. Rates often fluctuate significantly, even within a single day.
Rates on five-year adjustable-rate mortgages averaged 3.40 percent, up from 3.25 percent, the lowest rate on records dating back to January 2005.
Rates on one-year adjustable-rate home loans were unchanged at 3.26 percent.
The rates do not include add-on fees, known as points. One point is equal to 1 percent of the total loan amount.
The average fee for 30-year mortgage in Freddie Mac’s survey was 0.9 point. It was 0.7 point for 15-year fixed loans and five-year mortgages. It was 0.6 point for 1-year mortgages.
Copyright © 2010 The Associated Press, Janna Herron (AP real estate writer). All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
by: Laura Daily | from: AARP Bulletin | June 8, 2009
Floods, fires, hurricanes, tornadoes and even construction cranes toppling into apartment buildings: No home is completely safe from natural or man-made disasters. But while almost half of Americans say they have an inventory of their possessions to document losses in case of a disaster, you couldn’t prove it by Garry Kaufman’s experience.
After last year’s Hurricane Ike hit Texas, Kaufman, president of Galveston Insurance Associates, had more claims than anyone in the state. “I have 38 employees, and as far as I know, none of them encountered a homeowner who had a complete inventory,” he says. “A few customers stored a printed one in a file cabinet. That isn’t much use when your home is flooded by a 20-foot storm surge.”
Now that the hurricane season is gearing up, home inventories are essential. Most of us can’t remember what we had for lunch much less what’s stashed in the hall closet. That’s why you need to take stock of what you have. In the event of a claim, insurers require you to substantiate your loss in as much detail as possible. “It’s one of the most important documents a consumer can put together,” says Jeanne Salvatore, spokeswoman for the Insurance Information Institute, which has provided free downloadable software to consumers for years.
For those who find the prospect of cataloging everything they own daunting, there is some good news. Sure, you can get the job done with a notebook and disposable camera, but why not let computers do the heavy lifting? A number of new home inventory software programs let you list items room by room and attach photos and receipts, all the while storing everything securely in cyberspace. The real advantage: You can print a report anytime and from anywhere and turn it over to your insurance company with a total sum of your assets.
Internet makes it easy
Carol Edgar, 63, of Bigfork, Mont., lives adjacent to a wilderness area where wildfires occur every summer. “If there was fire, we’d pack up the animals and be out of here,” she says. Edgar was one of the first to try the Insurance Information Institute’s Web-based Know Your Stuff program, launched in March. “It was incredibly easy,” says Edgar, who has so far inventoried her furniture, quilts, sewing room supplies and office equipment.
These programs usually include fields to note item name, room, category, date purchased and replacement cost. When an item is added, you can upload digital pictures and scanned receipts. Then you can print a household summary or detailed inventory by room or by category. Because the systems are completely Web-based, you can access them from anywhere—invaluable if your computer is destroyed, stolen or inaccessible.
Before starting an inventory, contact your insurance agent. Ask what sort of documentation is required should you ever need to file a claim. Anything of special value, such as art or collectibles, might need to be independently appraised. Or try Edgar’s method: Do a Google search for the item (like sterling silver flatware) to locate a replacement value.
Taking the inventory
Now get organized. Dig out every receipt. Remove garments from dry cleaning bags. Take stuff out of boxes. Open drawers and cabinets and pull out anything hidden on back shelves.
from: USA Today | August 31, 2010
Stephanie Armour
A new federal rule this year requiring mortgage lenders to give borrowers reliable estimates of closing costs appears to be working — whether it's also costing borrowers more money is uncertain.
A recent survey by Bankrate.com found that, on average, origination and third-party fees on a $200,000 purchase mortgage added up to $3,741 — a 37% jump over last year's average of $2,739.
The fees can include appraisals, credit reports, a closing or settlement attorney and surveys.
Some housing experts say costs are rising because lenders have had to hire more staff to comply with the requirements of the Jan. 1 rule. That includes auditors, inspection experts and others who make sure estimates are accurate.
"Lenders have had to hire compliance people," David Leoncavallo, president of GFEazy, a Salt Lake City provider of compliance and other data for lenders. "To go up from $2,700 to $3,700 overnight is insane. Consumers should be upset."
YOUR MONEY: Refinancing mortgage often smart even if you have to pay
PLANNING TO REMODEL? Four things for you to consider before you do
But others say closing costs haven't gone up. Rather, they say, the estimates simply seem higher because they more accurately reflect actual costs that buyers pay.
"Before, it wasn't an accurate assessment of closing costs," says Tim Dwyer, president of Entitle Direct, a direct-to-consumer title insurance service. "Now, it's a more accurate portrayal. Actual closing costs have not increased. The estimates have gotten closer to the actual costs."
The good-faith estimates also are aimed at protecting consumers by ensuring that lenders don't lowball the numbers, says Vicki Bott, deputy assistant director of the Department of Housing and Urban Development.
"Consumers get more accurate estimates upfront," she says. "It's not an increase in closing costs."
One reason lenders are ensuring accurate estimates is that, in many cases, they must now make up the difference between the estimate provided and the actual total.
Denis Orloff, a sales associate with Rhodes Van Note & Co. Realtors, says fees have risen because more people are needed to process the same number of loans.
He estimates borrowers pay $800 to $1,500 more than two years ago to have their mortgage application processed.
Bob Davis, executive vice president at the American Bankers Association, says some costs have gone up because it takes more time for lenders to comply with the estimates.
He also says new estimates have to be issued if, for example, the terms of a loan change.
"It's true the new requirements are more complicated and take more time to comply with," Davis says. "Anything that takes more time and effort adds an element of cost, but it's not significant."
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Explore all of your options before resorting to a costly reverse mortgage.
by: Jonathan Pond | from: AARP | September 9, 2010
Reverse mortgages are a hot topic among retirees, as well as those thinking about retirement, for good reason. If you're at least 62 years old and owe little or nothing on your home, you're probably eligible for a reverse mortgage through the Federal Housing Administration. The FHA's reverse mortgages, by far the most popular option for borrowers, are known as Home Equity Conversion Mortgages, or HECMs for short.
Unlike a conventional mortgage, on which you make monthly payments until the debt is settled, no payment is due on a reverse mortgage until you die, leave your home or sell. In most cases when you take out a reverse mortgage, you receive either a lump sum immediately or regular payments over time. The amounts are determined by a number of factors including your age (the higher the better), current interest rates (the lower the better) and the value of your home (the higher the better). For example, a couple in their mid-60s who own a $250,000 home might be able to get north of $130,000 from a lump-sum reverse mortgage.
While the prospect of receiving a big wad of cash that doesn't need to be paid back as long as you live is tempting, reverse mortgages have significant drawbacks. Topping the list is the expense. Origination fees alone can run as high as $6,000. Other closing costs, service fees and mortgage insurance premiums can total thousands more. Interest keeps accruing until the loan is repaid.
(FHA hopes to unveil a lower-cost reverse mortgage, dubbed the "HECM Saver," later in 2010. The loan amount from a HECM Saver would be less, but so would the fees. In the meantime, the standard HECM is just about the only game in town.)
In my opinion, a reverse mortgage should be considered a trump card that only gets played later in life, say when you're in your 70s or 80s, still healthy and intent on staying in your home for the duration. In that case, if few other assets are available, a reverse mortgage can provide a needed boost in income. Severe economic hardship can be another legitimate reason to resort to a reverse mortgage.
Because of the high costs and risks associated with reverse mortgages — remember, you're out those up-front fees if you're forced to repay the loan for any reason soon after taking it out — it's essential to examine all of the alternatives first. Here are some of the options to consider before committing to a reverse mortgage:
Tapping other resources. Do you have substantial cash value in a life insurance policy that is no longer needed? Are you likely to be receiving an inheritance? Do you have investments or real estate holdings that aren’t providing any income but could be sold? Are you eligible for any low-income assistance? [http://www.aarp.org/money/low-income-assistance/]
Refinancing. If you currently have a mortgage on your home, would refinancing at today’s rock-bottom mortgage rates lower your payments? Would taking out cash through a refinancing provide needed income while allowing you more flexibility than a reverse mortgage?
Relocating. If you live in an expensive area, have you considered relocating to a lower-cost locale? This is a popular option for retirees who want to stretch their nest eggs and lead a simpler life. After all, there's a huge cost-of-living differential between, say, New York's Manhattan and Manhattan, Kan.
Downsizing. Do you really need to stay in your current home? Does it have more space than you need? Is it likely to require a lot of costly maintenance in the future? Downsizing your living quarters can have many lifestyle advantages in addition to the cost savings.
Sharing your home. If you have more space than you need and your finances are tight, sharing your home with a friend, family member or even a stranger can help make ends meet. Try to find roommates who are compatible with your lifestyle.
Selling and renting. Homeowners who are being pinched financially should also think about selling their houses and renting instead. There are buildings and communities that cater to renters 55 and up. Selling a home, especially one that you've lived in for a long time and that has appreciated, can free up needed capital. And by renting, you can let someone else worry about maintenance and landscaping.
All the information presented on AARP.org is for educational and resource purposes only. We suggest that you consult with your financial or tax adviser regarding your individual situation. Use of the information contained in this website is at the sole choice and risk of the reader.
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The Associated Press
Published: Friday, September 3, 2010 at 1:00 a.m.
Last Modified: Thursday, September 2, 2010 at 8:18 p.m.
( page of 2 )
GAINESVILLE - Florida's population grew slightly in 2009 after a one-year decline broke a steady string of growth dating to the end of World War II, according to preliminary estimates released Thursday.
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The University of Florida reported the state added an estimated 21,000 residents in the last year, bringing the state's population to 18,771,768. From 2008 to 2009, the state lost more than 56,000 people.
Stan Smith, director of the university's Bureau of Economic and Business Research, said the 2009 increase was meager.
"Even though the state turned it around, it still represents the smallest population increase since the 1940s," Smith said. "Florida's population growth continues to be very, very slow by historical standards."
He attributed the growth to a slight improvement in Florida's economy, although it is still in bad shape, particularly in creating new jobs.
"There have been some jobs added in the last few months, but unemployment is still very high and job growth is very weak," Smith said.
Florida's July unemployment rate was 11.5 percent, with more than a million workers jobless.
The population growth last year was uneven, with slightly more counties losing residents than adding them, although the changes either way were minimal.
Southwest Florida reflected that trend. Charlotte County ranked 10th among 67 counties in growth, adding 1,291 people for a population of 166,746. Sarasota County ranked 60th, losing an estimated 1,052, for a total population of 388,268.
Manatee ranked 14th, adding 889 people, for a population of 319,293.
The biggest increases were in the largest counties, led by Miami-Dade, which added an estimated 8,253 people. Hillsborough was next with 6,353.
Florida added an average of 125,000 people annually from 1950 to 2008, Smith said. During the boom years last decade, the population grew by 400,000 per year. Without more job growth, the population growth will remain slow, driven more by births and foreign immigration than by people moving from other states as in the past.
The biggest percentage increase in population was in north Florida's Lafayette County. It grew by 5.2 percent, but that was mostly because of an increase in the number of inmates at state prison, Smith said.
The biggest decline was in Seminole County, which lost 3,659 residents, followed by Pinellas with 3,199.
Florida added an average of 125,000 people annually from 1950 to 2008, Smith said. During the boom years last decade, the population grew by 400,000 per year. Without more job growth, the population growth will remain slow, driven more by births and foreign immigration than by people moving from other states as in the past.
The biggest percentage increase in population was in north Florida's Lafayette County. It grew by 5.2 percent, but that was mostly because of an increase in the number of inmates at state prison, Smith said.
The biggest decline was in Seminole County, which lost 3,659 residents, followed by Pinellas with 3,199.
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