So I woke up this morning to cumulus clouds billowing overhead!! Its been in the mid eighties with some gusty winds all weekend but now we get to see some thunderstorm action. August seems to be the best month to see the thunderstorms develop over the sierras. Come join us in a cool down before the temperatures climb back up into the eighties this weekend.

If your in the Tahoe basin and want sometimg funa nd educational to do with your family, come celebrate the vibrant cultural traditions of Tibet at Valhalla in the beautiful Tallac Historic Site just 10 minutes south of Emerald Bay at Lake Tahoe on Aug. 25-29 and Aug. 31. Experience a wide range of events giving insight into the culture of Tibet. Immerse yourself in rich Tibetan tradition with friends and family. Ven Losang Samten, renowned Tibetan Scholar, spiritual teacher and artist, will return to Valhalla to teach and create a Medicine Buddha Sand Mandala, the centerpiece of the festival. Losang’s ability to incorporate the qualities of practicing loving kindness, patience, and understanding with those he meets has touched the hearts of many. The purpose of this festival is to share and preserve the unique arts and culture of Tibet and to raise awareness of the situation in Tibet. For more information go to http://www.tahoedailytribune.com/article/20080801/NEWS/23779007/1061&parentprofile=1061. See you all there

Tip for Improving Gas Mileage

RISMEDIA, July 19, 2008-

The summer vacation season is getting in full swing and fuel prices are rising faster than the temperature. But drivers can stretch each tank of gas by roughly 10% with simple driving tips and smart car care solutions from 3M Car Care. “Over the life of a car, poor fuel efficiency and excessive fuel use can lead to hundreds, if not thousands of dollars in added expense,” said John Marmar, U.S. business manager, 3M Car Care products. “Properly maintaining the vehicle and watching your driving style are two of the best ways to maximize fuel efficiency and reduce long term expenses.” 3M Car Care offers six tips to maximize your car’s fuel performance.

1. Check tire pressure - Improperly inflated tires can greatly reduce fuel economy, so make sure tires are inflated to the manufacturer’s recommended pressure listed on the inside of the driver’s side door. The correct tire pressure will also provide a safer ride and help reduce tire wear.

2. Let your engine breathe - Replacing a dirty, clogged air filter will go a long way in improving fuel efficiency. According to the federal government, a car’s gas mileage could improve by as much as 10% with a clean air filter. In addition to the fuel savings, the new filter will help protect the engine.

3. Keep the fuel system clean - Carbon and resin buildup in a car’s fuel system reduces fuel efficiency. You can clean the entire fuel system with the new 3M DIY Fuel System Tune Up Kit. With just one tool and 45 minutes, it cleans the engine, fuel injectors, intake manifold, intake valves, combustion chambers and throttle plate with the same trusted 3M products used by automotive professionals. Keeping the fuel system clean helps maximize the engine’s performance, extend the life of the engine and improve mileage.

4. Keep it cool inside - Summer heat requires air conditioning, but AC can account for up to 5% of a car’s fuel consumption. Using 3M Crystalline Automotive Window Film can keep the sun and heat at bay - making the vehicle cooler and reducing the demand on a vehicle’s air conditioning system. Even better, 3M Crystalline Automotive Window Films offer many of the benefits of darker window tints, with the option of being virtually clear in color.

5. Take it easy and slow down - Driving a car at a high speed, “jackrabbit starts” and aggressive driving in traffic can greatly reduce fuel efficiency. The U.S. Department of Energy says “As a rule of thumb, you can assume that each 5 mph you drive over 60 mph is like paying an additional $0.20 per gallon for gas.” And every time you “hit the gas” you get closer to the next refill. 6. Put your car on a diet - Remove any unnecessary, heavy objects in the vehicle. An extra 100 pounds can reduce fuel efficiency by as much as 2%. Even removing golf clubs can help lighten the load.

For more information, visit www.3Mcarcare.com.

Tips for purchasing a home

Originally Posted by Shannon Witt
on 3/25/2008 11:33:49 AM

10 Ways to Prepare for Homeownership  

1. Decide what you can afford. Generally, you can afford a home equal in value to between two and three times your gross income.

2. Develop your home wish list. Then, prioritize the features on your list.

3. Select where you want to live. Compile a list of three or four neighborhoods you’d like to live in, taking into account items such as schools, recreational facilities, area expansion plans, and safety.

4. Start saving. Do you have enough money saved to qualify for a mortgage and cover your down payment? Ideally, you should have 20 percent of the purchase price saved as a down payment. Also, don’t forget to factor in closing costs. Closing costs — including taxes, attorney’s fee, and transfer fees — average between 2 and 7 percent of the home price.

5. Get your credit in order. Obtain a copy of your credit report to make sure it is accurate and to correct any errors immediately. A credit report provides a history of your credit, bad debts, and any late payments.

6. Determine your mortgage qualifications. How large of mortgage do you qualify for? Also, explore different loan options — such as 30-year or 15-year fixed mortgages or ARMs — and decide what’s best for you.

7. Get preapproved. Organize all the documentation a lender will need to preapprove you for a loan. You might need W-2 forms, copies of at least one pay stub, account numbers, and copies of two to four months of bank or credit union statements. 8. Weigh other sources of help with a down payment. Do you qualify for any special mortgage or down payment assistance programs? Check with your state and local government on down payment assistance programs for first-time buyers. Or, if you have an IRA account, you can use the money you’ve saved to buy your fist home without paying a penalty for early withdrawal. 9. Calculate the costs of homeownership. This should include property taxes, insurance, maintenance and utilities, and association fees, if applicable.

10. Contact a REALTOR®. Find an experienced REALTOR® who can help guide you through the process. 
 
    
7 Reasons to Own Your Home  

1. Tax breaks. The U.S. Tax Code lets you deduct the interest you pay on your mortgage, your property taxes, as well as some of the costs involved in buying your home.

2. Appreciation. Real estate has long-term, stable growth in value. While year-to-year fluctuations are normal, median existing-home sale prices have increased on average 6.5 percent each year from 1972 through 2005, and increased 88.5 percent over the last 10 years, according to the NATIONAL ASSOCIATION OF REALTORS®. In addition, the number of U.S. households is expected to rise 15 percent over the next decade, creating continued high demand for housing.

3. Equity. Money paid for rent is money that you’ll never see again, but mortgage payments let you build equity ownership interest in your home.

4. Savings. Building equity in your home is a ready-made savings plan. And when you sell, you can generally take up to $250,000 ($500,000 for a married couple) as gain without owing any federal income tax.

5. Predictability. Unlike rent, your fixed-mortgage payments don’t rise over the years so your housing costs may actually decline as you own the home longer. However, keep in mind that property taxes and insurance costs will increase.

6. Freedom. The home is yours. You can decorate any way you want and benefit from your investment for as long as you own the home.

7. Stability. Remaining in one neighborhood for several years gives you a chance to participate in community activities, lets you and your family establish lasting friendships, and offers your children the benefit of educational continuity.  
 
Tax Benefits of Homeownership  

The tax deductions you’re eligible to take for mortgage interest and property taxes greatly increase the financial benefits of homeownership. Here’s how it works. Assume: $9,877 = Mortgage interest paid (a loan of $150,000 for 30 years, at 7 percent, using year-five interest)
$2,700 = Property taxes (at 1.5 percent on $180,000 assessed value)
______

$12,577 = Total deduction Then, multiply your total deduction by your tax rate. For example, at a 28 percent tax rate: 12,577 x 0.28 = $3,521.56 $3,521.56 = Amount you have lowered your federal income tax (at 28 percent tax rate)

Note: Mortgage interest may not be deductible on loans over $1.1 million. In addition, deductions are decreased when total income reaches a certain level.
Loan Types to Consider  

Brush up on these mortgage basics to help you determine the loan that will best suit your needs.
Mortgage terms. Mortgages are generally available at 15-, 20-, or 30-year terms. In general, the longer the term, the lower the monthly payment. However, you pay more interest overall if you borrow for a longer term.
Fixed or adjustable interest rates. A fixed rate allows you to lock in a low rate as long as you hold the mortgage and, in general, is usually a good choice if interest rates are low. An adjustable-rate mortgage is designed so that your loan’s interest rate will rise as market interest rates increase. ARMs usually offer a lower rate in the first years of the mortgage. ARMs also usually have a limit as to how much the interest rate can be increased and how frequently they can be raised. These types of mortgages are a good choice when fixed interest rates are high or when you expect your income to grow significantly in the coming years.
Balloon mortgages. These mortgages offer very low interest rates for a short period of time — often three to seven years. Payments usually cover only the interest so the principal owed is not reduced. However, this type of loan may be a good choice if you think you will sell your home in a few years.
Government-backed loans. These loans are sponsored by agencies such as the Federal Housing Administration or the Department of Veterans Affairs and offer special terms, including lower down payments or reduced interest rates to qualified buyers.

Slight variations in interest rates, loan amounts, and terms can significantly affect your monthly payment. For help in determining how much your monthly payment will be for various loan amounts, use Fannie Mae’s online mortgage calculators.
 
 
6 Creative Ways to Afford a Home

 

1. Investigate local, state, and national down payment assistance programs. These programs give qualified applicants loans or grants to cover all or part of your required down payment. National programs include the Nehemiah program, www.getdownpayment.com, and the American Dream Down Payment Fund from the Department of Housing and Urban Development, www.hud.gov.

2. Explore seller financing. In some cases, sellers may be willing to finance all or part of the purchase price of the home and let you repay them gradually, just as you would do with a mortgage.

3. Consider a shared-appreciation or shared-equity arrangement. Under this arrangement, your family, friends, or even a third-party may buy a portion of the home and share in any appreciation when the home is sold. The owner/occupant usually pays the mortgage, property taxes, and maintenance costs, but all the investors' names are usually on the mortgage. Companies are available that can help you find such an investor, if your family can’t participate.

4. Ask your family for help. Perhaps a family member will loan you money for the down payment or act as a co-signer for the mortgage. Lenders often like to have a co-signer if you have little credit history.

5. Lease with the option to buy. Renting the home for a year or more will give you the chance to save more toward your down payment. And in many cases, owners will apply some of the rental amount toward the purchase price. You usually have to pay a small, nonrefundable option fee to the owner.

6. Consider a short-term second mortgage. If you can qualify for a short-term second mortgage, this would give you money to make a larger down payment. This may be possible if you’re in good financial standing, with a strong income and little other debt. Lender Checklist: What You Need for a Mortgage  

W-2 forms — or business tax return forms if you're self-employed — for the last two or three years for every person signing the loan.
Copies of at least one pay stub for each person signing the loan.
Account numbers of all your credit cards and the amounts for any outstanding balances.
Copies of two to four months of bank or credit union statements for both checking and savings accounts.
Lender, loan number, and amount owed on other installment loans, such as student loans and car loans.
Addresses where you’ve lived for the last five to seven years, with names of landlords if appropriate.
Copies of brokerage account statements for two to four months, as well as a list of any other major assets of value, such as a boat, RV, or stocks or bonds not held in a brokerage account.
Copies of your most recent 401(k) or other retirement account statement.
Documentation to verify additional income, such as child support or a pension.
Copies of personal tax forms for the last two to three years.
   How Big of a Mortgage Can I Afford?  

Not only does owning a home give you a haven for yourself and your family, it also makes great financial sense because of the tax benefits — which you can’t take advantage of when paying rent.

The following calculation assumes a 28 percent income tax bracket. If your bracket is higher, your savings will be, too. Based on your current rent, use this calculation to figure out how much mortgage you can afford.

Rent: _________________________

Multiplier: x 1.32

Mortgage payment: _________________________

Because of tax deductions, you can make a mortgage payment — including taxes and insurance — that is approximately one-third larger than your current rent payment and end up with the same amount of income.

For more help, use Fannie Mae’s online mortgage calculators. 
 
Please call me if you need further assistance choosing the right loan program for you. I look forward to helping you find the perfect home in Lake Tahoe.

Shannon Witt