The 30 year fixed rates hit 4 ½ percent with APY of 4.8

this week June 21 2010. 

Home prices have slipped in Arizona to “significantly below cost to build.”  

There are fewer home buyers and homeowners creating a demand for rentals for years to come. *** see the chart below

Wherever you are …Fix and Lock in your home loan rates now, there is not much room for it to drop further.  After the possible tax deductions, coupled with the high likelihood of inflation in the years to come this is cheap money.  We have some investors that will allow up to 10 financed properties most are limited to 4 financed properties.

***HELPFUL INFORMATION FOR YOUR REFERENCE!

Conventional mortgage – when is a buyer eligible to purchase?

          FHA mortgage – when is a buyer eligible to purchase? 

          VA mortgage – when is a buyer eligible to purchase?

   USDA mortgage – when is a buyer eligible to purchase?

          Information subject to change at any time without notice.  06/10

For instance, do you know how to check for flight delays before you even arrive at the airport? Need to rent a car during your vacation? What’s the best way to comparison shop for car rental prices and take advantage of special offers? The answers are actually quite simple. The article below is filled with tips to help you avoid frustration when you fly the friendly skies. And, when it’s time to hit the road, the second article below can help you save money on a rental car.

If you have friends or even coworkers who are planning a vacation this summer–and, really, who doesn’t–please forward this email on to them. And call or email if you need any help or advice this summer.

	Nothing puts a bigger damper on the fun than leaving for the airport with ample time to check in and board your flight, only to arrive and find out that your flight is delayed…or worse yet, cancelled. Summer is an extremely busy time of year for the airlines. When you combine the increase in travel demand with the decrease in available aircraft–due to airlines trimming the fat and cutting back on scheduled flights–there are bound to be delays and cancellations. But doing a little planning in advance could help minimize the turbulence with your summer flight plans. Here are a few tips: 1. Reservations: Just as the old saying goes, “the early bird catches the worm”. When it comes to air travel, the early bird catches the flight. Booking an early morning flight may decrease the chance of dealing with flight delays or potential cancellations. Most summer thunderstorms happen in the afternoon, and booking early flights will help you avoid being stuck in the airport waiting for a storm to pass. And if your morning flight is cancelled, you will still have the afternoon to try and reschedule your flight plans. Additionally, if your flight schedule requires a connection to another flight, be sure and leave enough time in between flights to make your connections, factoring in the possibility of a short delay. 2. Check In: Save yourself some time by obtaining your boarding pass online. Simply log onto the airline’s website and print your boarding pass before leaving your home or office, up to 24 hours in advance. You will improve your chances of getting a better seat by checking in early, plus save time and hassle at the airport by avoiding the kiosk or check in lines. Even if you are checking luggage, most airlines have a designated area that you can check in luggage only and avoid the boarding pass lines…or check your luggage curbside, and you’re ready to head to your gate with no lines at all! 3. Luggage: But where luggage is concerned, try to travel light and carry on your luggage if possible. Carrying on your luggage will save you time hanging around baggage claim when you land, and avoid the headache of trying to retrieve luggage if it is lost. When you are carrying luggage on, be sure to be in line to board as quickly as you can – as overhead space can fill up quickly, and you might be forced to check bags anyways. 4. Airport / Flight Status: While you’re printing that boarding pass out, you can also obtain information about airport delays by hitting www.fly.faa.gov. Or another great site to obtain information about airport delays or to check flight status is www.FlightStats.com. You can even sign up for FlightStats electronic alerts, and receive notifications about flight delays or cancellations via email or text message. Most airlines have flight status on their websites as well, which can also be very handy if a friend or family member is picking you up at the airport. 5. Weather: Log onto www.weather.com to check the weather in the city you are departing from as well as in the city you will be arriving at, to help determine any potential travel delays due to weather conditions. It’s also helpful to know weather conditions for your destination, so you can pack appropriately. 6. Security: Even if your flight is on time and there are no delays, long lines at security checkpoints could delay you enough to cause you to miss your flight. To find out how long it may take you to get through security, visit http://waittime.tsa.dhs.gov/index.html. And a few hints on getting through security quickly – be prepared. Before you step up to the security table, remove your belt, shoes, cell phone, jewelry, keys and change from your pockets. Remove your outer jacket and place in a bin with your other belongings. Make sure your laptop computer is out of its case, and lying flat and unobstructed in its own bin before sending it on the conveyor belt through security. Keep your boarding pass in hand for the TSA agent to review – don’t put it on the conveyer belt. Be aware that if your boarding pass is marked with “S’s”, you have been randomly selected for a full screening, and sh ould allow more time. As you pass through the metal detector, be sure not to brush against the sides, as this will set off the alarm. Metal detectors work by measuring the aggregate amount of metal you are carrying as you pass through, and some machines have higher sensitivity than others. If your metal content exceeds the limit, the machine will beep and you’ll get one more chance through. This time, be careful in trying to remove as much metal as possible, because if the alarm goes off a second time, you will have to go through the full body screening, which could delay you further. And if you do get selected for “special screening”, be cooperative with the agent. They are just doing their job and working to keep passengers everywhere safe. Taking the above steps will not eliminate delays all together, but will certainly help you avoid having to spend a good part of your summer vacation in a terminal. Bon Voyage!

	You need to rent a car, but need a great deal. So you’ve spent hours online, and you finally feel confident that you’ve found that great deal. You’ve had five website windows open at a time, compared and contrasted, made your selection, finally finished filling out all the online screens, you’re ready to check out and sure you’re rounding the last bend…but then you come to a screeching halt. After all that work, you’re staring at a field asking for a promotional code, coupon code, or rate code. And all you can think is…after all that work! If I had that secret code it could potentially save me even more money on this rental rate, but I don’t know the code! So before you even cross the start line, is there a way to save money and save time on car rentals? Better yet, how can you get your hands on those secret codes? If you need a rental car, you should start by checking out two links. First hit www.rentalcodes.com, and search for the current discount codes for all of the major rental car companies. The site clearly spells out the type of code being offered, when the code expires, and what type of car the discount applies to. Jot down a few codes for different rental car companies and then take a few minutes to do a little comparison shopping, by visiting www.bnm.com. This site gives an easy rental car comparison tool, as well as publishes last minute discount offers and even more codes. Here’s another hot tip: some of the agencies will give you an even deeper discount if you pay for the entire rental upfront. And reserving the car isn’t the only place that you can save a few bucks. Consider these money saving tips when you arrive at the rental counter. Don’t accept the prepaid gas option unless you are certain the tank will be empty when you return the car. Although this can be convenient, it can also be costly. If you choose this option, it may cost you an entire tank of gas plus a service fee when you return the car, even if you only use a few gallons! Before you agree to the insurance option at the counter, know the details of your own auto insurance policy. If your auto policy has collision coverage, skip the insurance option. It can save you $20 or more per day. Take the time to walk around the vehicle and note all the dings and scratches. This will save you the headache of being charged for damage that may not have been done while you had the car in your possession. With gas prices at their current high levels, taking advantage of the above tips will help save you a few needed bucks…and may even provide a deep enough discount for you to upgrade to that sassy convertible!

Traders have been watching the debate closely, and it’s possible that passage of the Healthcare Bill could have a negative impact on the Stock market. If this is the case, there could in turn be a positive outcome for Bonds and home loan rates.

But that’s not the only action traders were keeping an eye on last week. Tuesday’s meeting of the Federal Open Market Committee offered little surprise, with no change to the Fed Funds Rate, which is the rate banks charge each other for lending overnight, or the language describing that the Fed Funds Rate would remain “exceptionally low for an extended period of time.”

While there is growing and well-warranted concern that continuing to keep rates low will lead to inflation down the road…and remember, inflation is the arch enemy of bonds and home loan rates…it does appear that inflation is subdued at present. Last week’s reports showed that the Producer Price Index (PPI), which gauges inflation at the wholesale level, was reported well below expectations and at the largest monthly decline since July 2009. Meanwhile, the Consumer Price Index (CPI), which measures inflation at the consumer level, came in just below expectations for February.

And there were additional headlines last week on other possible action that could impact Bonds and home loan rates negatively. Both Fitch Ratings and Moody’s have stated that the US has moved substantially closer to losing its AAA credit rating. This would be a very bad turn of events, as it would cost the US a lot more money in interest payments, by way of higher rates, to attract new investors to buy our Bonds. And higher rates on Treasuries would influence home loan rates higher as well.??

If you or someone you know would like to learn more about how you can take advantage of today’s low-rate environment, or the Homebuyer’s Tax Credit which is due to expire on April 30, give me a call.

Bonds were able to improve above important technical levels in the middle of the week, but were unable to hang on to these improvements. As a result, Bonds and home loan rates ended the week about the same as where they began.

SPRING IS IN THE AIR, WHICH MEANS IT’S TIME TO TAKE SOME CLEANING ACTION! CHECK OUT THIS WEEK’S MORTGAGE MARKET GUIDE VIEW FOR SOME SAFE AND HEALTHY SPRING CLEANING TIPS.

The action during Sunday’s healthcare vote will almost certainly impact the markets in the coming week, and there is also a full slate of economic reports to watch for. First up, there will be a double-dose of housing news with Tuesday’s Existing Home Sales Report and Wednesday’s New Home Sales Report.

Also, on Wednesday we’ll get a read on the health of the economy with the Durable Goods Report, which gives us an update on consumer and business buying behavior on big ticket items that last for an extended period of time. Friday will bring another read on the economy with the Gross Domestic Product Report, which is the broadest measure of economic activity.

Not to be missed will be Thursday’s weekly Initial Jobless Claims Report. While last week’s initial claims were essentially inline with expectations, the ugly component of the report was the 5,888,048 people collecting EUC (Emergency Unemployment Compensation) benefits. This is a whopping 360,000 person increase from the prior week.? Unfortunately, the labor market continues to be very weak. ?

Remember: Weak economic news normally causes money to flow out of Stocks and into Bonds, helping Bonds and home loan rates improve, while strong economic news normally has the opposite result.

As you can see in the chart below, despite midweek volatility, Bonds and home loan rates ended the week very near where they began. With all the action in store, I’ll be watching closely to see in what direction the markets and rates move this week. As always, please feel free to call or email to get more information on what the current rate climate means to you.

Safe Spring Cleaning for Your Home and Family

Many parts of the country are already warming up to spring…and that means spring cleaning. But have you ever considered what you’re using to clean your home…and if it’s really safe for your family? The problem with cleaning products is that there is very little regulation and virtually no labeling requirements.

“A lot of cleaning products contain toxic ingredients that aren’t properly regulated, disclosed, or in some cases even tested,” said Sara Mohs, co-founder of simplyneutral™, a company that promotes sustainable living through non-toxic cleaners.

In fact, most household cleaners are produced using a petroleum-based formula. That’s right, petroleum! In addition, they typically include chemicals, fragrances, and dyes that can be irritating to your eyes, skin, and respiratory tract.

In light of last week’s Poison Prevention Week, here’s a list of natural alternatives that work great and are probably already in your pantry:

Baking soda – We all know that baking soda absorbs odors, especially in refrigerators, but did you know it’s also a simple and effective cleaner? Just mix baking soda with warm water for an inexpensive cleaner comparable to commercial “abrasive” cleaners.

Vinegar – White vinegar is actually a deodorizer and a disinfectant…making it a great all-purpose cleaner. Avoid using vinegar solutions on marble or grout, but it’s perfect for all of the other surfaces in the kitchen and bathroom.

Lemon juice – Use lemon juice on hard-water stains, soap scum, even rust stains in the shower, tub, and toilet. Mix lemon juice with salt to remove stubborn stains from coffee pots. Or you can mix lemon juice with baking soda for a softer, paste-like cleaning solution. Add a little to olive oil for an effective wood polish. Blend it with water to make a potent air freshener.

Cornstarch – Cornstarch makes an effective glass and surface cleaner. Plus, you can combine 2 tbsp of cornstarch with 3/4 cup of baking soda for an inexpensive carpet freshener.

Borax – Also known as sodium borate, borax is best known as a hard-water laundry soap, but it also cleans wallpaper, painted walls, and other painted surfaces.

In addition to these natural ingredients, there are also a number of non-toxic cleaners that can be bought in stores. But make sure you consider a couple of points before making your purchase.

First, read the label carefully. “Although a cleaner may contain natural ingredients, it may also include dyes, fragrances, or synthetic preservatives,” Mohs said. “For example, if the label says fragrances are added, it may contain up to 150 synthetic chemicals.”

Second, you may want to take a quick look at the company itself to see if it is serious about producing natural cleaners that are safe for your family, your home, and the environment.

For more information and tips about non-toxic cleaning, visit www.simplyneutral.com.

A Helping Hand for Haiti
The catastrophe in Haiti cries out for all of us to do whatever we can to help. But many of us aren’t sure exactly how to help or which organization to entrust with a donation.
To help you make sure your donation makes as big a difference as possible, consider donating to AmeriCares, which is one of the many fine organizations helping Haiti through disaster relief. AmeriCares is in the business of disaster relief and has an extensive network on the ground in Haiti, so your money will go to get supplies directly to those stricken instead of setting up infrastructure. You can learn more about them and donate at http://www.americares.org.
Obviously, the current economy presents challenges for many of us, but if you are able to help, your donation will go a long way. Whether it is through AmeriCares, or some other organization of your choice, any assistance you provide can help ease the suffering of those in need.

MORTGAGE MARKET GUIDE VIEW ARTICLE BELOW!

This week brings us new employment numbers…and a chance to see if the labor market is showing signs of recovery. The employment news begins Wednesday with the ADP National Employment Report. Sandwiched between that report and Friday’s Jobs Report, is the Initial Jobless Claims report on Thursday.
The big news comes on Friday, when the all-important Jobs Report will be released. Last month’s report underscored the struggling labor market, as the Labor Department reported 263,000 jobs lost in September and an increase in the unemployment rate to 9.8%. The report due out this week is expected to show 166,000 jobs lost in October, which would be significantly better than the previous month if it happens. However, the Unemployment Rate is expected to continue its climb to 9.9%.
In addition to employment news, we’ll also see the ISM Index on Monday. This is the king of all manufacturing indices and is considered the single best snapshot of the factory sector.
Finally, the Federal Open Market Committee (FOMC) holds its two-day meeting this week, with an announcement of the Fed Rate Decision and Policy Statement due on Wednesday at 2:15 p.m. (ET).
Remember: Weak economic news normally causes money to flow out of Stocks and into Bonds, helping Bonds and home loan rates improve, while strong economic news normally has the opposite result. As you can see in the chart below, Mortgage Bonds were able to bounce back last week with help from weakness in the Stock markets.

Turning Back the Hands of Time
This weekend, the sun set on another season of Daylight Saving Time. The extra daylight we now enjoy was actually the result of the Energy Policy Act, which was enacted by Congress back in 2005. But did you know that throughout its long history, Daylight Saving Time has had a remarkable and sometimes unexpected impact?
A man was actually able to avoid the draft for the Vietnam War using a Daylight Saving Time loophole. When he was born, it was just after midnight, DST. When he was drafted, he successfully argued that in his home state of Delaware, standard time – not DST – was the official time for recording births. So he was technically born on the previous date–which had a much higher draft lottery number – and he was able to avoid being drafted.
In September 1999, the West Bank was on Daylight Saving Time, while Israel had switched back to standard time. A group of West Bank terrorists prepared some timed bombs – but misunderstood the time change – and the bombs exploded early, killing the terrorists themselves, rather than the intended victims – two busloads of innocent citizens.
In the 1950s and 60s, each state and locality was permitted to choose start and end DST dates as they desired. During 1965, Minneapolis and St. Paul – which are considered one metropolitan area – didn’t agree on start dates, and for a period of time, these Twin Cities had a one hour time change between them. And on one Ohio to Virginia bus route, passengers technically had to change their watches seven times in 35 miles!
To keep to their published timetables, Amtrak trains cannot leave a station before the scheduled time. So when the clocks “fall back” in the fall, all trains that are running on time actually stop at 2 am – the official time of DST change – and wait one hour before resuming their routes. In the spring, the routes instantaneously become one hour behind schedule, but they just keep going and do their best to make up the time.
So Daylight Saving Time sure can have some unexpected impact.
As we enter the first week of Daylight Saving Time, be sure to double-check all of your electronic devices and confirm that the time is correct. Although you may be accustomed to your computer and maybe even your digital clock in your car automatically updating, the recent change of dates for Daylight Saving Time may require that these devices be manually changed, as they now may NOT be ready to update to the correct time on the correct date!

Remember, as a general rule, weaker than expected economic data is good for rates, while positive data causes rates to rise.

AS THE PRESIDENT HAS DECLARED H1N1 – “SWINE FLU” – TO BE A NATIONAL EMERGENCY – GETTING THE FACTS IS MORE IMPORTANT THAN EVER. DO YOU KNOW HOW TO TELL WHAT’S JUST A COLD…AND WHAT IS ACTUALLY SWINE FLU? READ THIS WEEK’S MORTGAGE MARKET VIEW – AND PASS ON THE DETAILS TO YOUR FRIENDS AND COWORKERS.

Another record sized round of Treasury auctions are on tap this week – and the massive amounts of supply that continue to flood the market can cause home loan rates to move higher, if there is ultimately not enough demand to sop up all the supply. Additionally, there are several economic reports which could be market movers. Tuesday brings both the Consumer Confidence and Durable Goods Reports, the latter of which gives us an update on consumer and business consumption and buying behavior via data on items that are non-disposable, such as cars, furniture, appliances, games, cameras, business equipment, etc.
On Wednesday, there will be more news on the housing front with the New Home Sales Report, while Thursday brings another Initial Jobless Claims Report. Thursday also brings a read on the economy with the Gross Domestic Product (GDP) Report, which is the broadest measure of economic activity. And the week could end with a bang, as Friday brings the Fed’s favorite gauge of inflation, the Core Personal Consumption Expenditure (PCE) Index, found within the Personal Income Report.
Remember: Weak economic news normally causes money to flow out of Stocks and into Bonds, helping Bonds and home loan rates improve, while strong economic news normally has the opposite result.

H1N1: Information is the Best Defense!
Despite predictions from researchers at Purdue University that the H1N1 outbreak will peak this week, the reality is that it won’t be going away any time soon. Let’s not forget that the news is filled with shortages of the vaccine, as the number of H1N1 cases continues to surge across the country. And federal officials have warned that a second, larger outbreak could occur in early January.
The reality is that the best way to stop the spread of H1N1 is to know the symptoms and to take steps to protect yourself-and others-from it. The following information can help.
What are the symptoms of H1N1… and how are they different from the common cold?

Symptoms:

Fever: Fever is rare with a cold. H1N1, fever is usually present with the flu in up to 80% of all flu cases. A temperature of 100°F or higher for 3 to 4 days is associated with the flu.

Coughing:

A hacking, productive (mucus- producing) cough is often present with a cold. A non-productive (non-mucus producing) cough is usually present with the flu (sometimes referred to as dry cough).

Aches: Slight body aches and pains can be part of a cold. Severe aches and pains are common with the flu.

Stuffy Nose: Stuffy nose is commonly present with a cold and typically resolves spontaneously within a week. Stuffy nose is not commonly present with the flu.

Chills: Chills are uncommon with a cold. 60% of people who have the flu experience chills.

Tiredness: Tiredness is fairly mild with a cold. Tiredness is moderate to severe with the flu.

Sneezing: Sneezing is commonly present with a cold. Sneezing is not common with the flu.

Sudden Symptoms: Cold symptoms tend to develop over a few days. The flu has a rapid onset within 3-6 hours. The flu hits hard and includes sudden symptoms like high fever, aches and pains.

Headache: A headache is fairly uncommon with a cold. A headache is very common with the flu, present in 80% of flu cases.

Sore Throat: Sore throat is commonly present with a cold. Sore throat is not commonly present with the flu.

Chest Discomfort: Chest discomfort is mild to moderate with a cold. Chest discomfort is often severe with the flu.

If you think you have the H1N1 flu, you should take a few common-sense steps to protect your friends, family members, and coworkers. For instance, if you feel sick, stay home until you feel better and have gone at least 24 hours without relying on medicine to break your fever.
In addition, wash your hands, linens, dishes, and so on thoroughly. And cover your mouth and nose with a tissue when you cough or sneeze–and then throw the tissue away immediately. Finally, if you have to share a small space with other people, consider wearing a facemask to help make sure you don’t spread the flu to the people around you.
Follow these steps and monitor your symptoms to help stop the spread of H1N1…and remain happy and healthy!

Last week, the Core Consumer Price Index (CPI) was reported higher than expected, indicating that inflationary forces may already be underway. Remember, inflation erodes the value of the fixed return that a Bond provides – therefore, inflation is harmful to Bonds and home loan rates. Just the hint of inflation can cause home loan rates to worsen, which is what we saw last week.
———————–
And here’s a very interesting and important note – when looking at these CPI numbers, it is important to understand the effect that the “Cash for Clunkers” program had on this index. The Cash for Clunkers program was very “creatively” accounted for as a reduction in the sales price of automobiles, which had to have a dramatic effect on lowering the CPI that was reported. Imagine how much higher CPI would have been had this “creativity” not been used. As even more inflationary fears creep into the economy, home loan rates will continue to rise.

Also adding pressure to Bonds and home loan rates is the Fed’s plan to ration out their remaining purchases of Mortgage Backed Securities. The Fed has purchased around $950B year-to-date out of the $1.25T allotted for the program, which is now set to expire March 31, 2010. This means the Fed will be averaging about $14B a week in purchases, a lot less than $25B or so they had been doing up until recently. And anytime demand for an item slows down…including Mortgage Backed Securities…the price goes down. And in this case, it means that home loan rates will move higher.

The bottom line is that the heat is on…and home loan rates are starting to rise already. While home loan rates are still incredibly low, it is clear this won’t last much longer – and we may not see rates at these levels again in our lifetimes. Give me a call if you want to discuss your own situation, or if you have a friend, family member, neighbor or coworker who might benefit from some information.

In other news, Retail Sales for September fell by 1.5% – and while the numbers were better than expected, they are still dismal at best. In addition, the flood of pre-holiday sales and layaway options that are already hitting – remember, it’s still mid-October – also suggests a lack of pricing power for retailers. Stock earnings season continued with some mixed news: There were reasonably strong earnings reports from Intel and JPMorgan Chase, while there were weaker than expected reports from Johnson & Johnson, General Electric and IBM. Bank of America also posted its first loss for the year.

After all the week’s heat and pressure, Bonds and home loan rates ended the week slightly worse than where they began.
FINDING OUT THAT YOUR EMAIL OR ONLINE ACCOUNTS HAVE BEEN COMPROMISED IS ONE PRESSURE-FILLED SITUATION! CHECK OUT THIS WEEK’S MORTGAGE MARKET VIEW FOR SOME GREAT TIPS FOR CREATING STRONG PASSWORDS.

More inflation news is ahead this week, with Tuesday’s Producer Price Index (PPI) Report, which measures inflation at the wholesale level. Also this week, we’ll get a double dose of housing news, first with Tuesday’s Housing Starts and Building Permits Report and second with Friday’s Existing Home Sales numbers for September. Some of the numbers have been looking better in recent months, as buyers move quickly to take advantage of the combination of low home loan rates, discounted home prices, and for first time home buyers, a juicy tax credit that is set to expire soon.

Given the state of the job market, Thursday’s Initial Jobless Claims Report continues to be an important report to watch. Last week’s Jobless Claims fell by 10,000 to 514,000 – and while this was lower than the 520,000 that was expected, it was still an enormous number of people applying for unemployment benefits, which highlights a weak labor market. Also, earnings season continues for Stocks, which could have a big impact on both Stocks and Bonds. The Dow had cracked the psychologically tough level of 10,000…but was unable to hold its ground, and was pressured back lower.

Remember: Weak or negative economic news normally causes money to flow out of Stocks and into Bonds, helping Bonds and home loan rates improve, while strong or positive economic news normally has the opposite result.

As you can see in the chart below, Bond prices moved lower last week, meaning home loan rates moved higher. As discussed above – home loan rates are headed higher and are unlikely to return to similar levels anytime soon…and perhaps they never will again. Don’t miss your opportunity to improve your own home loan situation, or make a suggestion to someone you know that might be in need of some solid advice.

Stolen Hotmail Passwords Demonstrate Need for Stronger Passwords
By now, you’ve probably heard that 30,000 passwords for Hotmail and Gmail accounts were stolen earlier this month
But did you know that a security group analyzed those passwords and found that the most commonly used password was 123456? If that wasn’t bad enough, the second most common password that was used…yep, you guessed it…123456789.

In today’s electronic environment, that’s unbelievable. We no longer live in a world where we can use a simple string of numbers or a child’s name as a password. They’re just too easy to hack…and the results can be much more devastating than merely finding your emails made public.

The problem is that we all have so many passwords. So how do we make strong passwords that we can actually remember for every account?

The tips below can help you avoid the most common password pitfalls and even implement a few new ideas that will make your passwords easy to remember…and hard to break!

Don’t Use a Password that’s Easy to Guess

There’s no way around it…a well-protected password is hard for other people to guess. How do you do that? It’s pretty simple really. Just follow this advice:
•Use a random string of characters. That means no sequential letters or numbers, like those Hotmail accounts that used 123456!
•Make it looooong. The longer the better–even up to as many as 10 to 14 characters if space allows.
•Switch things up. Use a combination of upper and lower case letters, along with a few numbers mixed in the middle or end.
•Don’t use substitute symbols in common words. Using “@” for “a” or “1″ for “I” may look good to you, but most hackers are smart enough to break those substitutes rather quickly when the password consists of a common word.
•For that matter, avoid easy targets like words straight out of the dictionary or things like family names and birthdays.

Don’t Use the Same Password for All Accounts!

Most of us cheat when it comes to passwords. We have trouble remembering our passwords, so we come up with two or three that we can remember and use them everywhere.
But…you should avoid the temptation! That’s because all of your accounts will be vulnerable if even one account is compromised. The reality is, you need to create and remember multiple passwords–a different one for each account! Fortunately, it’s easier than you think. Just follow the steps below.

4 Simple Steps to Memorable, Yet Unique Passwords

Good passwords come down to two things: (1) they’re easy for you to remember and (2) they’re hard for others to break. Here’s a sure-fire tip that can help you achieve both!

1.Think up a phrase. Instead of a common word or family member’s name, think up a unique phrase that only you know. For example, you may think up something off the wall such as “I Like Short Hair Too.”
2.Make it an acronym. In our example, “I Like Short Hair Too” would become ILSHT.
3.Add Complexity. Remember those substitutes you’re not supposed to use with common dictionary words? Well, you CAN use them with your acronym. For example, “I Like Short Hair Too” can become “1 Like $hort Hair 2″ which makes: 1L$H2. You can also use upper and lower letters to make it 1L$h2. The point is to be creative, but in a way that you can easily remember it.
4.Make it unique. A password is only really unique if you use it for one account and one account only. So you can’t just use 1L$h2 for every account. And, in reality it’s still too short. Here’s the key to the whole process: Mix in additional letters and numbers that are unique to each account. For example, if you’re logging into a “gmail account” you can use the “gm” and “@cct” (for acct) to make: 1L$h2gM@cct. Then, for a Netflix account, you may use: 1L$h2Nf@cct. That way, you’re passwords will be hard for others to guess and unique to each account, but also easy for you to remember!

Of course, these are just examples. You’ll want to be creative and think up your own acronym and ways to add unique characters for each account. And then keep that little secret to yourself so no one will be able to guess your account passwords.

Follow these simple steps and you’ll have passwords that are tough to break, unique to every account, and easy to remember. And if you have children in your house who are starting to use passwords for email and IM accounts, teach them these steps to help educate them on the importance of strong passwords – they’ll thank you later in life!

Remember, as a general rule, weaker than expected economic data is good for rates, while positive data causes rates to rise.

$8,000 Tax Credit Nears End

The government is offering an $8,000 tax credit for first-time homebuyers – that is, folks who haven’t owned a home during the past three years. According to the plan, first-time homebuyers who purchase a home may be eligible for the lower of an $8,000 or 10% of the value of the home tax credit.
However, the program is scheduled to end soon. In fact, the Internal Revenue Service recently reminded potential first-time buyers that they must complete their first-time home purchases before December 1, 2009 to qualify for the special credit, which means the last day to close on a home and qualify for the credit is November 30, 2009. In other words, right now is the time to take advantage of this opportunity.
Here’s some information to help you understand what the tax credit benefits are and who qualifies.
Benefits of the Tax Credit
It’s important to remember that the $8,000 tax credit is just that… a tax credit. It’s a dollar-for-dollar tax reduction, rather than a reduction in a tax liability that would only save you $1,000 to $1,500 when all was said and done. So, if you were to owe $8,000 in income taxes and would qualify for the $8,000 tax credit, you would owe nothing.
Better still, the incentive is refundable, which means you can receive a check for the credit even if you have little income tax liability. For example, if you’re liable for $4,000 in income tax, you can offset that $4,000 with half of the tax incentive… and still receive a check for the remaining $4,000!
Who Qualifies?
The $8,000 incentive starts phasing out for couples with incomes above $150,000 and single filers with incomes above $75,000 and is phased out completely at incomes of $170,000 for couples and $95,000 for single filers. To break down what this phase-out means, the National Association of Homebuilders (NAHB) offers the following examples:
Example 1: Assume that a married couple has a modified adjusted gross income of $160,000. The applicable phase-out threshold is $150,000, and the couple is $10,000 over this amount. Dividing $10,000 by $20,000 yields 0.5. When you subtract 0.5 from 1.0, the result is 0.5. To determine the amount of the partial first-time homebuyer incentive to this couple, multiply $8,000 by 0.5. The result is $4,000.
Example 2: Assume that an individual homebuyer has a modified adjusted gross income of $88,000. The buyer’s income exceeds $75,000 by $13,000. Dividing $13,000 by $20,000 yields 0.65. When you subtract 0.65 from 1.0, the result is 0.35. Multiplying $8,000 by 0.35 shows that the buyer is eligible to reduce the tax liability by $2,800.
Remember, these are general examples. Borrowers should consult a tax advisor to provide guidance relevant to their specific circumstances.
What Type of Home Qualifies?
The tax credit is applicable to any home that will be used as a principal residence. Based on that guideline, qualifying “homes” include single-family detached homes, as well as attached homes such as townhouses and condominiums. In addition, manufactured homes and houseboats used for principal residence also qualify. Buyers will have to repay the credit if they sell their homes within three years.

Avoid This Costly Mistake

If you’ve been following the financial news, you’ve probably heard that the Fed’s been buying Mortgage Backed Securities. Unfortunately, people have picked up on the news and mistakenly discussed how these purchases will continue to cause rates to drop lower. But is that really what it means? No.
The following information can help set the record straight and help you make smart decisions that lead to a low interest rate for your home loan.
How is the Fed’s Bond Purchase Related to Rates?
The Fed has been buying Mortgage Bonds. BUT… more precisely, they’re buying a lot of FNMA 30-yr 5.0% and 5.5% Bonds. Many of the mortgages in these pools are outstanding home loans with rates between 6.0% and 6.5%, as the rate that a borrower pays is different than the coupon rate given to an investor buying into that mortgage pool, with the difference being taken by Wall Street firms and government agencies. The loans in these pools are likely to be refinanced and paid – because current rates make it very attractive to refinance a loan over 6.0%. Thus, giving the Fed a quick recoup on some of its investment.
Bottom line: The Fed’s purchase of higher rate coupons will not necessarily help rates to move lower, as their actions do not impact the loans being originated at today’s low rates.
The Problem Is…
Many consumers are in situations where they can refinance now and save hundreds of dollars a month on their mortgage payments. But if they hear people throwing around teases of lower rates ahead, they may decide to hold off on making the decision to save, in the hopes of gaining a few more dollars of savings per month if a lower rate came their way. Of course, while they’re waiting, rates could turn higher – especially when you consider that the Fed is scaling back its purchases of Mortgage Backed Securities – and this window of opportunity could pass them by entirely.
Is the Fed Scaling Back? And What Will It Mean to Rates?
Last week, the New York Fed began to scale back their Mortgage Backed Security purchase program. The Fed has been buying about $25 Billion worth of Mortgage Backed Securities per week, but the new plan to drag out these purchases over a longer period of time means that they will be reducing both the frequency and amounts of their purchases. This will cause higher levels of volatility, as the Fed will be purchasing less often and less consistently. As a result, rates will probably rise gradually over time.
Here’s the Clincher
Even if consumers are ultimately able to time the market perfectly and save another few bucks per month, they could still end up losing. That’s because while they delayed, they lost the savings each month they could have gained by taking action sooner. In other words, they may have lost hundreds of dollars for every month they waited. So even if they got lucky and obtained the rate they were looking for, it could take years to make up what they lost by waiting.
I don’t want anyone to miss an opportunity by either waiting or misunderstanding the media headlines. Let’s talk further on this. Call or email me, and let’s discuss what this might mean for you.

On the topic of inflation – Gold has been on a tear higher of late, reaching a record high of $1048 an ounce. Remember that Gold is seen as a “safe harbor” or hedge against a falling Dollar and inflation – as Gold is not likely to lose much value in periods of rising prices. Again, fears of future inflation are pervasive, particularly in light of the massive economic stimulus that has been injected into the US economy…and inflation will drive home loan rates higher. The latest spike in Gold is more likely attributable to the Dollar’s recent decline, but both factors are somewhat at play.
Also last week, the Initial Jobless Claims Report came in better than expected. According to the report, 521,000 new applications for unemployment benefits were received. That number was lower than the 540,000 that were expected, and marked the fewest number of new claims since the first week in January. However, that good news must be tempered by a look at the big picture…the reality is that despite a better-than-expected number, more than half a million people per week are still applying for new unemployment benefits. That’s a sign that the labor market is still very weak. In fact, just last week former Fed Chairman Alan Greenspan also commented that he sees unemployment rising beyond 10%.
IN LIGHT OF THE ONGOING WEAK LABOR MARKET, NOW MAY BE A GOOD TIME TO MAKE SURE YOU’RE DOING EVERYTHING YOU CAN TO BE AS PROFICIENT – AND EFFICIENT – AT YOUR JOB AS POSSIBLE. TAKE A LOOK AT THIE MORTGAGE MARKET GUIDE VIEW ARTICLE BELOW FOR HELPFUL INFORMATION ABOUT A BETTER WAY TO EVALUATE YOURSELF AND MAKE IMPROVEMENTS WHERE NECESSARY.
Forecast for the Week

Despite the Bond market being closed on Monday in observance of Columbus Day, the Stock market will be open, and the week ahead has plenty of market-moving economic reports on tap.
On Wednesday, the Retail Sales Report will be released. This is the most-timely indicator of broad consumer spending patterns, so the markets will be watching to see if it comes in near expectations. Thursday brings us inflation news when the Consumer Price Index (CPI) is reported. After Bernanke’s comment last week about the Fed protecting against inflation, the markets will be watching this report closely.
On Friday, the Preliminary Consumer Sentiment Index will be reported. This survey is conducted by the University of Michigan and measures consumer attitudes regarding present and future economic conditions. The index rose at the end of September, so the markets will be watching to see if that boost in confidence continued into this month’s preliminary report.
In addition to the important economic reports described above, industry experts and traders will be paying close attention to the release of the Meeting Minutes from the Fed’s most recent Open Market Committee meeting. Once again, any talks about future inflation could move the markets – particularly after Bernanke’s comments last week.
Remember: Weak economic news normally causes money to flow out of Stocks and into Bonds, helping Bonds and home loan rates improve, while strong economic news normally has the opposite result. As you can see from the chart below, Mortgage Bonds were unable to close above a tough technical ceiling of resistance last week and were ultimately pushed lower, causing home loan rates to rise.

Know Thyself: Here’s An Easy Way To Get Constructive Feedback That May Save Your Job In These Tough Times
By Marty Nemko, Contributing Columnist, Kiplinger.com
For years, I’ve been pushing my clients to get a 360-degree evaluation — that is, asking their boss, co-workers and supervisees for anonymous feedback on their work. I’ve also suggested using a 360-degree evaluation as a fast track to personal growth, getting feedback from friends, relatives and romantic partner(s).
But to be candid, few of my clients have responded to my exhortations and — hypocrisy alert — neither had I.
An easy evaluation
Because I want to practice what I preach and because — especially as I get older — I want to do everything I can to avoid becoming stagnant, I decided to get a 360-degree evaluation.
A new Web site, Checkster.com, makes it easy to get anonymous, work-related feedback. I did a five-minute self-evaluation at the site and then entered the e-mail addresses of eight people from whom I wanted feedback (you can choose from three to eight). They included my six most recent career-coaching clients, plus my editors at Kiplinger.com and US. News & World Report.
Checkster.com sent each person an e-mail inviting him or her to give me feedback anonymously, using the five-minute questionnaire. They were given a week to reply.
Five of my six clients responded; neither of my bosses did. Hmmph. (Once three or more people responded, I was notified of who did and didn’t respond but was not told which questionnaire corresponded to which person.)
What I learned
My evaluations confirmed a number of positive aspects about me, which I’ll refrain from recounting to prevent suspicious readers from thinking that I devised this column as an opportunity to toot my own horn. On the negative side, I got a few useful nuggets:
• Two of my clients said they wished I were more available between sessions. Now that they mention it, I’m guessing that some of my other clients feel that way, too. So from now on, I will more regularly invite my clients to send me e-mail about their progress and any stumbling blocks. I’ll invite my needier clients to e-mail me every day with a rating of their progress.
• One of my clients wrote, “Because of his enthusiasm/energy, at times I felt that Marty was not fully in tune with someone who may just work more slowly, calmly.” Although feedback from a single source should be taken with a grain of salt, that comment rings true. So I will redouble my efforts to modulate my energy level to accommodate my clients’ natural style.
• Another client wrote, “Marty cannot solve all clients’ problems, even if they are career-related: Therapy and career counseling are different.”
I’m not sure I’ll act much on the last one. I know that I can’t solve all my clients’ psychological problems, and perhaps I should consider referring a few more to therapy. But too often I’ve seen therapy actually make clients worse. Yes, therapy patients may gain insight into the causes of their problems, but their life is often no better for it.
Yet frequently, in just a few minutes, I’m able to help a client identify irrational beliefs and even the childhood roots of those beliefs that have kept the client stuck. Clients are then able to move forward and implement their action plan.
How to react
The way I responded to the last client’s feedback illustrates an important principle. Some people feel the need to act on all feedback, while others reflexively reject all criticism. The sweet spot is to consider feedback and then accept or reject it on its merits.
I understand that you may still be reluctant to do a 360-degree evaluation. You could get bad news or criticism in a tough-to-improve-on area — for example, being told you’re “too intense” or you often “don’t get it.”
But it’s worth the risk. A 360-degree evaluation is arguably the most potent way to become a better professional and usually a better person. And, especially in this lousy economy, it could even save your job (See A Career Survival Kit for more tips.)
Still unwilling? Here’s a second-best solution: Do a self-SWOT. Write down your strengths, weaknesses, opportunities and threats. Now what, if anything, do you want to do differently? More of? Less of?
Marty Nemko is a career coach and author of Cool Careers for Dummies. Reprinted with permission. All Contents © 2009 The Kiplinger Washington Editors. www.kiplinger.com

Remember, as a general rule, weaker than expected economic data is good for rates, while positive data causes rates to rise.

Creating the Perfect Home Office
These days, more and more people are working all or part of the time from home, making a home office a necessity. Here are some tips for creating the perfect home office.
Layout – There is no bigger mistake you can make than purchasing office furniture or equipment without knowing exactly where you’ll be placing it in the room. Before you buy any new furniture, make sure you measure and plot where each piece will go, and don’t forget to account for electrical and cable outlets.
Furniture – A desk that’s roughly 60-inches wide, 30-inches deep, and 29-inches high is not only conducive to work, but it’s highly functional in terms of storing the items you use regularly. Your chair should be comfortable, but its primary function should be to promote healthy posture. Good posture will facilitate strong mental focus and will help to alleviate back and neck pain.
Lighting – Don’t underestimate the importance of quality lighting. If you’re lucky enough to have a window in your office, this should serve as your primary light source during the day. Natural light is easy on the eyes and promotes physical energy as well as a good mood. It’s also free. Large lights like floor lamps and ceiling lights should have the ability to be dimmed. Also, make sure your desk lamp is equipped with a light bulb that’s easy on the eyes. These “soft” light bulbs can be found anywhere, from office supply stores to grocery stores.
Storage – Identifying the type of items you need to store, as well as the quantity, will help you to determine an appropriate course of action. Here are a few helpful hints.
• Closets are great for storage. Not only can they house filing cabinets, but they are also perfect for storing the items you don’t need to access on a regular basis. This helps to maximize the actual workspace of your office.
• Shelving is one of the most versatile options for storage. Shelves can be purchased cheaply and come in a variety of sizes. They are easily installed and take up zero floor space.
• Don’t forget about your garage. When it comes to older files or anything that is rarely accessed, a garage can provide ample storage space. Word to the wise, however, the garage can be a dirty place. Plan accordingly by storing paper items in boxes and wrapping equipment in protective plastic.
• Visit a store that’s dedicated to home organization. Nowadays it seems like nearly every mall has a store of this kind. You’d be surprised at some of the inexpensive, space-saving storage options available.
Wall Organizers – Dry erase boards, chalkboards, corkboards, and magnetic boards are fantastic tools for keeping clutter off your desk. They are inexpensive and available everywhere in a variety of sizes There are even combination boards that provide countless options.
Cords – Never underestimate the importance of power strips as they provide the ability to plug multiple devices into one outlet. The better power strips also provide surge protection to the equipment that’s plugged into them. In addition, cord covers are a great way to not only hide cords but to keep them from becoming a tangled mess. They can be purchased quite cheaply at any electronics store.
Décor – Last but not least, once you’ve got all the necessities in, don’t overlook decor. Certificates, diplomas, awards, trophies, and pictures not only complement an office, but they also help to personalize it.
Follow these simple steps, and more organization, function, and focus could be right around the corner.

Remember, as a general rule, weaker than expected economic data is good for rates, while positive data causes rates to rise.