Spring Market is Here

If you or anyone else has been thinking of Selling to Buy a New Home,
Now is the Time!
Interest Rates are Super Low and the Buyers (for now) are back!

A $200,000 mortgage, 30 Years at 4%, Monthly P&I= $954.00
A $150,000 mortgage, 30 years at 4%, Monthly P&I=$715.00

Pass the word along to your friends and Family.
Call us with any questions.

Clarifying That 3.8% Tax on Property Sales

From our Indiana Board of Realtors:

3.8% Medicare Tax:


The health care legislation enacted in 2013 included a new tax that
was designed to affect upper income taxpayers.
The 3.8% tax is imposed ONLY on
those with more than $200,000 of Adjusted Gross Income (AGI) ($250,000
on a joint return).

The tax applies to investment income, defined as interest,
dividends, capital gains and net rents. These items are all included in an
individual's AGI. A formula will determine what portion, if any, of these types
of investment income would be subject to the tax.

The tax is NOT a transfer tax on real estate sales and similar
transactions. Not long after the tax was enacted, erroneous and misleading
documents went viral on the Internet and created a great deal of
misunderstanding and made the tax into something far more draconian than the
actual provisions.

The new tax does NOT eliminate the benefits of the
$250,000/$500,000 exclusion on the sale of a principal residence. Thus, ONLY
that portion of a gain above those thresholds is included in AGI and could be
subject to the tax.

See AGI on tax form:
http://images.turbotax.intuit.com/iqcms/support/lib/images/e-file/2010-AGI-1040-GEN12049.png

What Can Really Affect Your Credit Score in a Bad Way

1) Opening Too Many Accounts at Once
Credit card sign-on bonuses are certainly enticing, but you
shouldn't be signing up for every card that's offering some cash back. This is
because each application and subsequent credit pull will generate a hard inquiry
that will appear on your creditreport.
2) Missing One Payment
One missed payment may seem innocuous enough, but in reality a
single delinquency can cost a previously stellar credit score to fall more than
100 points. The good news: As long as the missed
payment doesn't lead to additional woes, your score will start to rebound relatively quickly
and it can get back to good standing in about 12 months following the
delinquency
3) Closing an Old Account
You should think twice before officially closing that credit
card you opened back in college, especially if you're getting ready to apply for
a new line of credit. Closing an old account can have a negative impact on
yourcreditscore since it can lower your credit-to-debt utilization ratio, which is
essentially how much credit you have at your disposal versus how much credit you
are actually using
4) Maxing Out a Single Credit Card
As MainStreet has previously reported, it's never a good idea to
bump up against your overall creditlimit because your credit
utilization ratio will appear sky-high. However, maxing out a single card can
negatively influence your credit score as well.
5) Racking Up a Bill Right Before Your Statement
Closes
Credit card issuers typically only report two things to
creditbureaus each month: whether
you're up-to-date on all your payments and what your balance at the time is. As
such, running up big purchases right before your statement closes – and the
issuer reports the information – can negatively impact your credit-to-debt
utilization ratio and subsequent score, regardless of whether you go on to pay
off that balance on time or not.
6) Not Checking Your Credit Report
Even if you're not particularly credit active, it's a good idea
to take advantage of the free annual credit report the Fair Credit Reporting Act entitles you to, if
only to scour it for incorrectly attributed delinquencies, accounts or
inaccurate balances, which can all do varying amounts of damage to your score.
This is because errors on credit reports are all too common. As MainStreet has
previously reported, about 30% to 40% of all credit reports have some
type of error on them, some of which can unfortunately be difficult (and
time-consuming) to remove.
7) Ignoring an Account That Has Gone Into
Collections
You may think that you don't owe that unpaid medical bill that
keeps getting sent to your house, but your score is still in jeopardy if you
decide not to pay it. Many places that don't lend money, like a hospital or
cable company, will send their unpaid bills to a collections agency after a certain amount of
time and they will report you to the credit bureaus.
Similar to a missed mortgage, credit card or auto loan payment, this delinquency can cost good scores 100 points or
more.

What's Happening with The Real Estate market?

The engine is revving, we see activity on the rise. We feel 2012 is going to be a good real estate year. Interest rates are still low, making a mortgage affordable to more buyers.

Almost everyone prefers a home to renting an apartment. Yea it's work. But it's not that much work and every bit of work you do to your home is an investment in current enjoyment and future profit.

Why do people prefer to own over rent? It's Yours - when you own your Home instead of renting it, you get to mold your living space into whatever you need or want it to be. You don't need to ask permission from a landlord. And usually Landlords will say no, or you'll lose some of your security deposit because of your changes.

Sense of Security - Studies have shown that kids raised in ahome that is owned by their parents rather than renting have a lower rate ofpregnancy and drug use. This has been attributed to the fact that mosthomeowners stay in one place for a longer period of time rather than moving around from place to place like renters tend to do.

Also, if you have a fixed rate mortgage, you know what your monthly payment is going to be two, three, five and even ten years down the road. Rent, on the other hand, will rise, depending on how long your lease is.

Even in these difficult times, Americans still realize the value of homeownership both from a financial and social standpoint.draft

Getting Top Dollar for your Home

Q. I know similar homes sell for different prices based on condition. What can we do to our home to get top dollar when we decide to sell?

A. Based on your financial situation, do some type of updating every year. From painting or adding new flooring, to
kitchen or bath remodeling. Many of these updates can be done yourself. Flooring is so easy to install now & all the big home improvement stores will provide expert consultation. You can even Google: How do I install a wood laminate floor?

Getting top dollar is the result of supply & demand. If the supply of sharp, updated homes is low, which it usually is, your updated home will get top dollar: Low supply, high demand. If your home wow factor is average or below, you will have lots of competition: Supply is high, demand is low. This will drive your home price lower, because you have lots of competition. We are currently in a buyers market. Buyers will choose the best deal based on condition & price.

The bottom line is keep your home updated. You will not only enjoy the beauty while living in your home, you will get top dollar when you decide to sell. When we do market evaluations for our customers, we make suggestions that will help them get the best possible price for their home. We would be happy to assist you.

Good Article about when is it time to downsize your vehicle?

With gasoline prices stretching toward $4 a gallon and beyond, many Americans are thinking about trading in big cars for something a little more fuel-efficient. In a recent poll conducted by the Consumer Reports National Research Center, more than twice as many consumers said they’d choose a small car as their next vehicle, as would choose a small, midsize or large SUV; a minivan; or a pickup. But there’s a lot to consider before you decide to trade in your old gas guzzler.

Here is the link to the article:
http://autos.yahoo.com/news/how-to-know-when-it%E2%80%99s-time-to-downsize-your-car-20110518.html?page=1

Another Great Video about a Funny Dog!

The Ultimate Dog Tease !
Copy & Paste into your browser if the link isn't active:

http://www.youtube.com/watch?v=nGeKSiCQkPw&feature=topvideos_entertainment