Our Somali kitten, Nacho, proofs my copy for this Blog (which explains any typos). If you've got a great caption for this picture, share it with us!
Thursday, March 31, 2005
Tuesday, March 29, 2005
Out of the frying pan and into the fire
We unloaded one house and now we're headed into a new one. We just purchased a 4 bedroom home in Newport News, VA. The housing market is double the price of anywhere we've lived before. So how did we afford a large home in a nice neighborhood? Well, it is courtesy of some creative financing (and a loving God).
Instead of the standard 30-year fixed rate VA mortgage we usually get, we tried some new products. Our hats are off to Countrywide mortgage and their local branch manager, J. Mansisidor (plug intended). He found a product that allows us to keep our payments within $300 of what we paid for a house that cost $120,000 less than the current one. Sure, we're essentially renting the new house from the mortgage company, but since we'll likely only be here a couple of years, we wouldn't build equity anyway.
Here's how we did it. First we're getting a one-month LIBOR (London Interbank Offered Rate) an index on which some ARMs (Adjustable Rate Mortgages) are based. This index is a global index which generally varies less than U.S. interest rate based ARMs. Here is some additional information about LIBORs. Because the loan is a one-month ARM, it will fluctuate each month. Looking over the last four years of data, however, the payments never vary more than about $10 per month.
Ever pay PMI (private mortgage insurance)? If you don't put 20 percent or more down on a home, you usually have to pay this insurance, even if you have perfect credit. We've paid a lot of it over the years and it can cost up to $200 per month. In our current loan package, we are taking out a second home equity line of credit to pay the 20 percent down on our house, thus avoiding the costly PMI. This means we'll make two payments on the house each month. Why no one ever suggested this to us in the past, I don't know, but it is a brilliant way to avoid PMI on 100 percent financing.
If all this financial talk has your head swimming, just remember that there a lot of loan products available today other than just a 30-year or 15-year fixed rate or standard ARM. You don't have to be an expert, just find yourself one who can guide you through the lending maze.
Instead of the standard 30-year fixed rate VA mortgage we usually get, we tried some new products. Our hats are off to Countrywide mortgage and their local branch manager, J. Mansisidor (plug intended). He found a product that allows us to keep our payments within $300 of what we paid for a house that cost $120,000 less than the current one. Sure, we're essentially renting the new house from the mortgage company, but since we'll likely only be here a couple of years, we wouldn't build equity anyway.
Here's how we did it. First we're getting a one-month LIBOR (London Interbank Offered Rate) an index on which some ARMs (Adjustable Rate Mortgages) are based. This index is a global index which generally varies less than U.S. interest rate based ARMs. Here is some additional information about LIBORs. Because the loan is a one-month ARM, it will fluctuate each month. Looking over the last four years of data, however, the payments never vary more than about $10 per month.
Ever pay PMI (private mortgage insurance)? If you don't put 20 percent or more down on a home, you usually have to pay this insurance, even if you have perfect credit. We've paid a lot of it over the years and it can cost up to $200 per month. In our current loan package, we are taking out a second home equity line of credit to pay the 20 percent down on our house, thus avoiding the costly PMI. This means we'll make two payments on the house each month. Why no one ever suggested this to us in the past, I don't know, but it is a brilliant way to avoid PMI on 100 percent financing.
If all this financial talk has your head swimming, just remember that there a lot of loan products available today other than just a 30-year or 15-year fixed rate or standard ARM. You don't have to be an expert, just find yourself one who can guide you through the lending maze.
Friday, March 25, 2005
Easter Egg Hunt
If you have more than one child, you know that comparisons and the words "That's not fair" are constants. When we do Easter Egg hunts, one child always complains that the other got more eggs than he or she did.
Here are some ways to end the bickering that turns a fun event sour: (requires plastic hinged eggs):
Hope you have a happy, peaceful Easter!!
Here are some ways to end the bickering that turns a fun event sour: (requires plastic hinged eggs):
- For small children, let them keep only certain pre-agreed upon colors (have the same number of each color).
- Reading age children can only keep the eggs with their names written on them
- Older children must find a message written one letter at a time on eggs. You can keep the focus on the season by using religious messages such as "Jesus is alive" or "Jesus rose again from the dead." The word "Resurrection" is great as it is an even dozen letters.
Hope you have a happy, peaceful Easter!!
Tuesday, March 22, 2005
Easter Centerpiece
The best ideas are stolen, and this one comes from an arrangement I saw in the current issue of Family Circle. I adapted it to use plastic eggs. It's pretty fast and easy. I made two of these while I watched a movie. Here's the directions:
Supplies
1 small Easter basket
13-15 plastic hinged eggs
1 styrofoam half ball to fit basket
drinking straws
pastel tissue paper
candy (M&Ms or jellybeans)
floral picks (with wires)
glue sticks and glue gun
Bunny pick (opt.)
Assembly Directions
Cut base of straws at an angle to make to make a point on one end, leaving straws about 6 inches long. Glue plastic eggs to straight end of straw. Use a big dollop of glue so that the straw stands upright. Hold in place until glue sets up.
Cut tissue paper in 3-1/2" squares. Poke the pointed end of the straw into the center of a square glue to the base of the egg. Take a second square in a different color, poke the straw through the center and glue this piece at a right angle to the second one. Attach tissue to all the eggs.
Cut green tissue leaves and attach to the floral picks with the attached wires. You'll need about 1 doz. leaves.
Fill eggs less than half full with candy (too much candy will bend the straw).
Glue styrofoam to base of basket. Arrange eggs and leaves in basket. Cut additional lengths off the straws to obtain a nice round arrangement. Use the leaves to fill in gaps. Add a bunny pick as an accent.
Where to shop
You can get the styrofoam at Wal-Mart and they have plastic eggs fairly cheap. The bunny pick I got is from Dollar Tree (2 to a pkg.) . The total cost is about $5-7 depending on how pricey a basket you use. I found mine at Walgreens for $3. Walmart had cute ones for $1.50.
OK, so this is a little Martha, but I doubt she'd use plastic eggs. She'd probably have you blow out and color goose or ostrich eggs.
For those who can't be trusted with glue guns
You can get the same effect by using foil wrapped chocolate eggs. Just take a bamboo skewer and stick it through the candy and the tissue paper and put into the basket.
Supplies
1 small Easter basket
13-15 plastic hinged eggs
1 styrofoam half ball to fit basket
drinking straws
pastel tissue paper
candy (M&Ms or jellybeans)
floral picks (with wires)
glue sticks and glue gun
Bunny pick (opt.)
Assembly Directions
Cut base of straws at an angle to make to make a point on one end, leaving straws about 6 inches long. Glue plastic eggs to straight end of straw. Use a big dollop of glue so that the straw stands upright. Hold in place until glue sets up.
Cut tissue paper in 3-1/2" squares. Poke the pointed end of the straw into the center of a square glue to the base of the egg. Take a second square in a different color, poke the straw through the center and glue this piece at a right angle to the second one. Attach tissue to all the eggs.
Cut green tissue leaves and attach to the floral picks with the attached wires. You'll need about 1 doz. leaves.
Fill eggs less than half full with candy (too much candy will bend the straw).
Glue styrofoam to base of basket. Arrange eggs and leaves in basket. Cut additional lengths off the straws to obtain a nice round arrangement. Use the leaves to fill in gaps. Add a bunny pick as an accent.
Where to shop
You can get the styrofoam at Wal-Mart and they have plastic eggs fairly cheap. The bunny pick I got is from Dollar Tree (2 to a pkg.) . The total cost is about $5-7 depending on how pricey a basket you use. I found mine at Walgreens for $3. Walmart had cute ones for $1.50.
OK, so this is a little Martha, but I doubt she'd use plastic eggs. She'd probably have you blow out and color goose or ostrich eggs.
For those who can't be trusted with glue guns
You can get the same effect by using foil wrapped chocolate eggs. Just take a bamboo skewer and stick it through the candy and the tissue paper and put into the basket.
Monday, March 21, 2005
House is sold
Selling a house or giving birth -- which is worse?
I'm not certain which is worse. Probably it's selling a house, because your pain lasts so much longer.
Truth about flat-fee listings
We tried a flat-fee listing this time where you pay a fee for listing on the MLS, get a sign and a lockbox and nothing more. You are responsible for marketing and selling your home. Sounds great? Usually the listing agent doesn't do a lot to earn the large commission, so you can save some bucks by doing it yourself.
We had a hard time finding a flat fee lister in Illinois. We did find one and $700 later we thought we were all set. ($200 to an online agency to find a broker and $500 to the agent) We were wrong.
Turns out that Illinois became the first state to require real estate agents to provide minimal service (i.e. no flat-fee listings). The Realtors promoted this bill on the pretense that it prevents them from representing both sides of negotiation (which of course they'll do if they sell their own listing). The truth is that they just want to protect their listing agent commissions.
Our Realtor was a gem and agreed to handle the negotiations and closing for what we paid him as that was the deal. The local MLS was threatening to ban him if he didn't. We wound up giving him an additional $500 to help with closing and he did earn his money as local city inspections wound up requiring a bunch of repairs on 0ur home (another major issue).
Tips if you decide on flat-fee listing
Before you try a flat-listing, here's my advice:
I'm not certain which is worse. Probably it's selling a house, because your pain lasts so much longer.
Truth about flat-fee listings
We tried a flat-fee listing this time where you pay a fee for listing on the MLS, get a sign and a lockbox and nothing more. You are responsible for marketing and selling your home. Sounds great? Usually the listing agent doesn't do a lot to earn the large commission, so you can save some bucks by doing it yourself.
We had a hard time finding a flat fee lister in Illinois. We did find one and $700 later we thought we were all set. ($200 to an online agency to find a broker and $500 to the agent) We were wrong.
Turns out that Illinois became the first state to require real estate agents to provide minimal service (i.e. no flat-fee listings). The Realtors promoted this bill on the pretense that it prevents them from representing both sides of negotiation (which of course they'll do if they sell their own listing). The truth is that they just want to protect their listing agent commissions.
Our Realtor was a gem and agreed to handle the negotiations and closing for what we paid him as that was the deal. The local MLS was threatening to ban him if he didn't. We wound up giving him an additional $500 to help with closing and he did earn his money as local city inspections wound up requiring a bunch of repairs on 0ur home (another major issue).
Tips if you decide on flat-fee listing
Before you try a flat-listing, here's my advice:
- Make sure your state allows it. If you get wind they're considering legislation like Illinois, write your legislator and have them vote against it.
- Select a title company before you sell and find out what assistance they'll give you.
- Don't do a flat-fee listing if you have to move before the house sells. If you're long distance you really need a Realtor.
- Don't waste a lot of money on newspaper advertising. Most of all your leads will come from the MLS.
Thursday, March 17, 2005
St. Patrick's Day
How do we celebrate St. Patrick's Day?
With the eatin' of the green.
St. Patrick's Day is a great time to use up all the green food color in your cabinets that is starting to crust over from age.
Everything at dinner is green. Menu suggestions?
Green milk or apple juice
Green mashed potatoes
Green beans, peas, brocolli or artichokes (no food coloring needed)
Green Jello
Green Cool Whip (it works better if it's thawed--but who has time?)
Green Crescent Rolls (use the new spray food color on them before baking)
Green Catsup (you have to use the good Wilton food color to turn catsup a dark green)
Green Meatloaf (I usually just put the green catsup on top)
Just put a few drops of green food coloring in all your food or spray on green color with the new green food spray. You're kids will be grossed out and your spouse or significant other will try not to be (but they will). Everything tastes the same (or does it when it's green?) Make sure its food coloring not other green growth that you're serving!
No way you'd ever cook anything? Then use the spray coloring on whatever food came out of your paper bag or styrofoam container! Green is great!
With the eatin' of the green.
St. Patrick's Day is a great time to use up all the green food color in your cabinets that is starting to crust over from age.
Everything at dinner is green. Menu suggestions?
Green milk or apple juice
Green mashed potatoes
Green beans, peas, brocolli or artichokes (no food coloring needed)
Green Jello
Green Cool Whip (it works better if it's thawed--but who has time?)
Green Crescent Rolls (use the new spray food color on them before baking)
Green Catsup (you have to use the good Wilton food color to turn catsup a dark green)
Green Meatloaf (I usually just put the green catsup on top)
Just put a few drops of green food coloring in all your food or spray on green color with the new green food spray. You're kids will be grossed out and your spouse or significant other will try not to be (but they will). Everything tastes the same (or does it when it's green?) Make sure its food coloring not other green growth that you're serving!
No way you'd ever cook anything? Then use the spray coloring on whatever food came out of your paper bag or styrofoam container! Green is great!
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