The new option will be available for all HECM case numbers assigned after October 4, 2010.  The new FHA designed HECM Saver is a second reverse mortgage option to lower upfront closing cosst for homeowners who want to borrow a smaller amount other than what would be available through a standard HECM loan.

Some seniors find out fees are too high for them despite the popularity of out HECM loan.  HECM Saver was created to provide seniors with a reverse mortgage option that significantly lowes cosst by eliminating Mortgage Insurance Premiums (MIP) that are required under the standard HECM option. 

An upfront premium of .01% of the property value in the HECM Saver plan versus a premium of 2% in the HECM Standard option makes a difference.  HECM Standard and Saver plans will be charged monthly for Mortgage Insurance Premiums. 

Under the HECM Saver program, it will reduce the upfront fees while substantially lowering the risk to the FHA insurance fund because the principal limit or amount of money available to a borrower under the Saver program will be reduced. 

Funds are advanced by HECM to the borrower and interest accrues, but the outstanding amount does not have to be repaid until the borrower dies, leaves the home or sells the property.  At that time, if the balance due on the loan exceeds the value of the home, FHA insurance pays the difference.  Borrowers may opt to receive funds as a lump sum at the loan origination, establish a line of credit or request fixed monthly payments that will be disbursed for as long as they continue to live in the home. 

More information available at:  www.hud.gov.

Since 2009, the federal government has ordered mortgage companies to modify loans rather than foreclose them.  Therefore, I have some tips for seniors that can help before you modify your mortgage. 

The idea is to cut the monthly mortgage payments so they are less than 30% of the homeowner’s income.  The federal government’s Making Home Affordable Program has lengthened loan terms-in most cases, it extended from 30 years to 40 years, according to lenders and federal reports.  Out of 390,000 mortgages, over half have been permanently modified through this program. 

The U.S. Treasury Department has not released the number of struggling homeowners who have been put into 40-year loans, but lenders say that’s the predominant new term for modified mortgages.  Earlier in January, about 42% of the loans modified at that point had been lengthened. 

The number of mortgages that have been changed by trimming the principal on “underwater” houses is between 27% and 28% of all modifications.  The modified loans have had their interest rates reduced. 

Attorneys specializing in home loans say that, if you’re 60 in a 40-year note, you’re just renting from the bank and you’re paying more than you would from someone you could rent from.  That is what the mortgage industry has gotten to. 

The stepped approach to modifying home loans in the federal foreclosure-prevention programs is to reduce interest-rates and lengthen loan terms before the principal write-offs.  This is according to what the government has called for specifically. 

Mortgage companies are not allowed under the federal Equal Opportunity Credit Act to consider the age of homeowners when putting them into loans.  Homeowners typically don’t have any payment penalties.  Homeowners that have taken a 40 year home loan can always pay more if they want to treat it like a 30 year loan. 

Forty year loans make little sense financially, particularly for seniors who face paying the upfront interest possibly for the rest of their lives.  Usually, the 60+ clients take the reduced interest rate and longer term because they are attached to the home and want to stay.

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There is an abundance of possibilities for booking your home this fall. And it’s important to know what might interest travelers who are interested in renting your vacation home.  Therefore, I have some tips that will help bring them in. 

Warm Weather Lovers  

If your vacation property is located in a warmer climate, then yours may be just the place for people that search for warmer winds.  Be sure to include outdoor activities available to entice people to put on their shorts one last time before winter. 

Outdoorsman 

Entice hunters and fishermen as well as families with information about best times for deer hunting, fly fishing etc,.  Include information for families about hiking and back packing for others to do while Dad’s hunting or fishing. 

SemiLlocals 

Many people with their budget in mind look for short trips closer to home.  Include in your posting that a long weekend is the perfect get away.  Fall breaks from schools or Columbus Day provides extra vacation time for families as well.  Advertise with that in mind for travelers within driving distance.  Post pictures of animals vacationers may see on or near your property. 

Bargain Seekers 

Bargain hunters can be frustrating during your peak season.  Let them know you might be willing to entertain their offers once the off-season rolls around.

Promote your available fall weeks for those deal-seeking inquiries.   Bargain hunters might take what they can get. 

Treasure Hunters 

Shopping for some is the highlight of their trip.  Fall is prime for antique auction season and shopping.  In your home’s fall postings, include information about shopping locations and auctions and any Christmas expos coming to the area.  

Empty-Nesters

Parents will take advantage of their new-found freedom and extra spending money by traveling.  Not being restricted to school time anymore, these couples may be more inclined to travel during off-season to avoid the crowds.   Be sure to include attractions to your town during these times. 

Honeymooners 

June weddings aren’t for everyone.  Focus on couples planning a fall wedding and promote your home as the perfect honeymoon place.  Add romance to your ads by including photos of candles, rose petals, the tub filled with bubbles and champagne.  

Event Seekers  

Think of local events to promote your vacation home.  List festivals and concerts or a trip to the pumpkin patch with hayrides.  Be sure to include all events in your listing-you never know what will attract renters. 

Pet Lovers 

For travelers that can’t bear to leave their pets behind, including them in your vacation package may broaden your reach. 

Retreat Planners  

Employers try to boost employee morale by heading outside.  A mix of brainstorming sessions and rounds of golf can do wonders for businesses.  Sometimes professionals need time away from the bustle of the office to get inspired.  Focus your posting on the quietness of your home and the availability of work space for those working vacationers. 

Guy or Girl Getaway Travelers 

Guys and girls of all ages need to get away from home and from each other.  Feature local attractions that would appeal to groups like fishing, spas, and golfing.  Think about father/son, mother/daughter getaways, too.

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When it comes to new or existing homes, everyone has their own trouble spots.  I have found some new home trends that highlight making your home interesting with curtains.  Even when staging your home for sale, think about some of these ideas to help your sale.  They make a big statement without a large investment.

Sharp Drama

You can add glamour, increase privacy, block drafts, and buffer noise.  Try sharpening the drama of a curtain by adding thick textured panels to dining area door frames.  Hang them from a simple rod mounted near the ceiling and use an unlined style so no liner shows on the back. 

A Grand Entrance

You can create an inviting nook along any blank wall in a hallway, foyer or bedroom.  You can also add fashionable seating like a bench or antique chair to this area.  Try using two molding pieces to construct a cornice and attach lightweight curtains for a flowing flair look. 

Awning Vision

You can add height to your ceilings by using vertical striped curtains.  Play up the symmetry of twin beds by using two curtain panels, end-to-end, and two rods – one should be concealed and one with decorative finials.  This style curtain perfectly suits twin beds.  You can use doubled up curtains for larger beds. 

Find more great curtain ideas and trends at www.LowesCreativeIdeas.com

The Lake Havasu Area Chamber of Commerce just celebrated 40 years of helping small businesses succeed and thrive.  Although it’s been a trying last couple of years, the chamber is still going strong.  They are even happy with the current retention rate, which is still well above the 80% mark.  

The Lake Havasu Area Chamber of Commerce is an excellent source for small businesses, residents and visitors to the area.  When you’re relocating in or to Lake Havasu City, Arizona, you can ask the Chamber of Commerce for a list of real estate agents in the area who are members. When visiting the area, you can get great information from the Chamber of Commerce about local events, activities, places to see and things to do. 

Coke helped organize the Chamber of Commerce’s 40^th birthday celebration in front of the Chamber building off of London Bridge Road.  Dozens of local businesses turned out for the celebration along with all Chamber officials.   

Residents can expect big changes at the Chamber of Commerce that will help everyone adapt to the changing demographics of the area. 

It’s the support of the business community that helps the community of Lake Havasu City continue to grow at a steady pace.  Find what you need to know about the area and local businesses from the Lake Havasu Area Chamber of Commerce.

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* El Zaribah Shrine Ceremonial – Oct 15^th through 17^th at the Nautical Inn Resort at 1000 McCulloch Blvd. 

* Marine Corp Band – Oct 15^th from 7:00pm to 8:00pm at Rotary Community Park.  Free admission.  Bring blankets or lawn chairs for your own seating. 

* 39^th Annual London Bridge Days Parade – Oct 16^th in Lake Havasu City.  Parade will travel from McCulloch Blvd to Capri Blvd beginning at 10:00am.

* 2^nd Annual Soap Box Derby – Oct 16^th following the London Bridge Days Parade.  There is a $25 entry fee for all participants. Entry registration can be found at www.havasusoapboxderby.com. 

* 33^rd Annual Relics & Rods Run to the Sun – Oct 20^th through 24^th.   All proceeds from this event will go to local charities.  You can find full details of the event at www.relicsandrods.com. 

* Fall Fun Fair – Oct 23^rd from 3:00pm to 8:00pm at Rotary Community Park.

* Halloween Fright Night and Candy Walk – Oct 30^th from 6:00pm to 9:00pm.  The candy walk is on McCulloch Blvd from Acoma to Smoketree. 

* 5^th Annual Main Street Halloween Fright Nite – Oct 31^st from 6:00pm to 9:00pm on McCulloch Blvd from Acoma to Smoketree.

Lake Havasu City is the place to be this October for fun times with the whole family.  If you’re visiting Lake Havasu City and looking at homes in the area, I can help you find the perfect property.

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Everyone will be meeting at the London Bridge Resort’s Martini Bay at 4:30 pm.  The mini fashion show and silent auction takes place from 5:00 to 7:00 pm.  Then, at 7:00 pm, we make our way to Movies Havasu to watch the movie “Life As We Know It”.  Prizes will be raffled off throughout the evening.

Tickets must be purchased in advance.  So, contact Sharone Jerzy at 928-486-2123 or Jeff Okamura at 928-486-5404 right away to make sure you have a spot at Lake Havasu City’s Girl’s Night Out!

Cheryl Westwood, your Lake Havasu City real estate specialist

When searching for real estate in Lake Havasu City or when looking for home remodeling ideas, you should consider smart designs that make a home energy-efficient.  Lake Havasu City is the perfect area for smart designed homes where energy efficiency is needed.  Just imagine your utilities being in the low $100s versus the upper $200s+.

It is easy to find homes now that are energy-efficient and it’s just as easy to turn your current property into an energy-efficient one with smart design ideas. 

When looking for your energy-efficient dream home, look for ones that have been constructed with the following smart designs in mind:

* Position of the home – You want the home to be flooded with sunlight during the cooler months and protected during months when temperatures soar.

* Extra-wide roof overhangs – This will keep the side cooler, longer.

* Shade trees – Helps keep the direct sunlight off the roof.

* Energy rated windows and doors – Keeps your heat or cool air in and the outside elements out.

* Tankless water heaters – Saves water and heats instantly.

* Energy Star appliances – Uses less energy than traditional appliances.

Here are some ideas for remodeling your home to make it more energy-efficient with smart designs:

* Install energy rated windows and doors

* Extend your roof overhangs

* Add tankless water heaters

* New roof with 50-year shingle and spray-foam insulation

* Add a window air condition unit to the attic to keep it cooler during hot months

* Buy Energy Star appliances

* Add compact fluorescent lighting.

When you want the lowest utility bills possible, use these tips when searching for your next home or remodeling your current home. 

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Lake Havasu City will soon have a new drag strip and dirt bike track to add to the many recreational opportunities that abound in the area.  Nearly everyone wants the addition and is happy that it has passed city council. 

City council members unanimously approved the opportunity to add a drag strip and dirt bike track to the area.  This will bring even more entertainment and economic development to Lake Havasu.  It’s events like this that help recreation towns like ours thrive.

This addition will be added to the SARA Park Master Plan, which will also include nine softball and youth baseball fields and six multipurpose fields that will not need new revisions.  The SARA Park Master Plan was approved by the City Council in September 2005. 

The drag strip and dirt bike track will definitely be the biggest new thing Havasu has seen in a long time when it comes to entertainment.  Now, visitors will have even more activities to do when they come to Lake Havasu City.  It’s an addition that everyone is happy to have.

Always do your homework before you purchase anything.  Make sure your energy savings appliances or improvements will do what they say to save you the money you expect. 

Federal Energy Tax Credits

Whether or not an energy-efficient improvement qualifies for a tax credit will depend on the type of upgrade and the type of materials that were used.  Who performs the work will never be considered.  You should use the IRS form 5695 to claim your residential energy tax credit.  You can let your professional tax preparer fill it out and file it for you or you can do-it-yourself.  Be sure to save all your receipts and manufactures’ certification statements.  This will attest that the proper tax credit materials were used.

No Guarantee

Energy Star ratings does not mean automatic guarantee.  Therefore, do not blindly follow the advice of misinformed contractors.  You can easily spend a little time online to verify that what you are interested in will qualify for energy-efficiency credits.  

Actual Savings

Your savings will vary from one home to another.  You should be realistic about your savings as well as the time it will take to recoup your investment.  The average person spends $2,200 annually per household on home energy bills.  This amount will vary depending on the regional climate and condition of your home.  Using the proper energy rated improvements will lower your utility bill each month.  Over time, you will see even more savings with the changes of the seasons. 

There is also the uncapped energy tax credit for large projects like solar panel additions that will not expire until the end of 2016.  Improvements like this are a definite savings when compared to the investment.

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