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By Cari Anderson, July 27, 2010 10:19 am

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By Cari Anderson, April 20, 2010 9:05 pm

Year after year one of the most prolific homeowner property insurance claims is due to water damage. Follow these time-tested tips to keep your home safe and dry!

1. Check your water pressure regularly: At least once a year check to make sure your water pressure is in the optimal range of 45 to 65 pounds per square inch (psi). You can do this by purchasing a pressure gauge and attaching it to the faucet. If your reading is above 65 psi this could mean trouble down the line. For more on how to test water pressure, check out this article.
2. Fix leaks: This may sound obvious but leaks can go unnoticed until damage is already done. Look for stains around areas where water is used. Check in cabinets under sinks for water spots. Also, if there are unusually warm spots in the floor, it could indicate hidden water damage.
3. Check out your water bill: Normally I just pay my water bill without really looking it over and I know I’m not alone. But try to get in the habit of periodically inspecting your charges to get an idea of your normal water usage. Major fluctuations may indicate a problem. Of course, you may use more water in the hotter months but if you check your usage regularly, you’ll get a feeling for what is normal and what is cause for concern.
4. Replace old or worn parts: Periodically check your appliances’ hoses and/or seals as well as the caulking around them. The time investment is minor compared to the potential hazard if left unchecked.
5. When you’re away for an extended period of time it may be a good idea to shut off your water to prevent any hazards while you are gone. See if your home has a water shut off valve for the home only so that your yard irrigation isn’t affected.
6. Doing laundry? Stay present. One of the best pieces of advice I’ve ever gotten from a damage restoration professional is to never, ever leave the house while your washing machine is running.  If the machine malfunctions and starts to leak water your presence or absence can mean the difference between small nuisance and major water damage. I know this is a tough one (it has been for me) but just being aware of the potential hazard can motivate you to follow this advice

Do you have any other good tips to prevent water damage? Please feel free to comment below! Stay dry!

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By Cari Anderson, March 2, 2010 3:27 pm

Recently we emailed out our quarterly newsletter and I was impressed by one article that I thought would be nice to share. The article is called Sales Cycles – The Secret to Shopping Savings and was published by All About News, Inc. It contains a very useful calendar outlining month- by-month, which items tend to be on sale according to consumer reports experts. Apparently major sales are cyclical in nature and with proper knowledge and planning, those of us in the know can save big!

Here is the run-down outlining what’s on sale and when:

January:               Christmas decorations; Linens; Bikes; Outdoor gear; Furniture; Winter Coats; CDs and DVDs; Cookware; Swimwear; Toys

February:            Winter clothes; Humidifiers; Small Consumer Electronics; MP3 players and digital cameras; Treadmills

March:                  Video games; China; Computers

April:                     Electronics

May:                      Towels; Athletic apparel; Cordless phones; Small appliances; Mother’s Day materials

June:                     Tools; Father’s Day materials; Computers; Swimwear

July:                       School supplies; Computers; Furniture; Swimwear

August:                Pool toys; Sandals; Patio furniture; Air conditioners; Camping equipment; Dehumidifiers

September:        Summer clothes; Inflatable pools; Gas grills; Shrubs; Trees; Perennials

October:              Lawn mowers

November:         Baby products; Toys; Halloween items

December:         Christmas items (after Christmas); Wedding dresses; Cars

Of course, not all of these will hold true in every region 100% of the time. In fact I left out “Houses and

Condos” under February’s list. I just thought it was too oddball to include considering these days they

are “on sale” pretty much all the time! But you get the idea. If you’re in the market for any of the above do a little comparison shopping. It’ll only take a few minutes and you could stand to save a significant amount of money.

Cari & Doug Anderson with Diversified Mortgage Group…925.964.1213

CariAndDoug.com

Cari CA DRE #01220718  Doug CA DRE #01165309

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By Cari Anderson, February 26, 2010 4:15 pm

End of Week Update

Economic News:  Yesterday’s release of the Durable Goods Orders showed positive improvement and raised hopes that the recovery is extending.  The Unemployment Claims number came in surprisingly higher than the expected 460,000 at 496,000 which represented the highest levels since November.  This put a bit of worry in the market which was a positive for the debt sector.  Today’s revised Gross Domestic Product (GDP) numbers were 5.9% (versus the initial 5.7%) which represented the second quarter of economic growth in a row.  Finally, Existing Home Sales fell 7.2% for the period which mirrored the softer new home sales numbers from earlier in the week.

Mortgage Markets:  Yesterday we were greeted with better mortgage pricing in the afternoon.  Even with the better than expected revised GDP numbers both the stock and bond markets are fairly quiet today.  Rates are roughly the same as yesterday afternoon.  Still great and a great time to lock with the uncertainty surrounding the end of the Fed’s Mortgage Backed Securities purchase program ceasing at the end of next month.

Upcoming Next Week:   Monday:  Personal Income & Outlays, ISM Manufacturing Index & Construction Spending.  Tuesday:  Motor Vehicle Sales.  Wednesday:  ADP Employment Report.  Thursday:  Jobless Claims, Productivity & Costs, Pending Home Sales Index.  Friday:  Employment Situation.

Cari & Doug Anderson with Diversified Mortgage Group…925.964.1213

CariAndDoug.com

Cari CA DRE #01220718  Doug CA DRE #01165309

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By Cari Anderson, February 26, 2010 3:55 pm

Practical Advice for the New Homeowner

There’s nothing more exciting than opening the door to your first new home and knowing that it’s entirely yours, that you actually own it! No landlord bothering you about every little thing. Finally you can do whatever you want to do in your new home (including painting the walls!).

But step back for a moment. While you’ve certainly earned the pride you feel of owning your home, don’t let your emotions get the better of you and potentially jeopardize your valuable investment.

Before you start making any major renovations, take a minute to cover the practical side of home ownership. These three steps can save you time, stress and money:

1. Make sure you are properly insured:  Before you decide to add on or tear down anything associated with your house, sit down with your insurance provider and make sure you are covered on all fronts before you make any renovations. It makes no sense to spend a single cent on upgrades if they are not protected.
2. Put maintenance first: You may be happy you no longer have to answer to your landlord but conversely, you have no landlord to call when something goes wrong! Before you think about beautifying your home, fortify it first. Invest in necessary repairs and avoid trouble down the line. For more tips see our blog on Easy Home Maintenance.
3. Hire a pro: When you do decide to upgrade or renovate, be sure to hire a qualified professional. This doesn’t mean you can’t do your own painting or other simple projects but a major undertaking requires a professional to achieve the desired result and avoid injury. On the other hand if you are “DIY- impaired” don’t worry. For even the minor fixes and upgrades you can call on a local handyman. Check your community center, yellow pages or local newspaper classifieds for these services. And if you have a parent, relative or friend who’s handy, you’ve hit the jack pot. Just be prepared to put your kitchen to use and feed your helper(s) well!

  By simply taking steps to ensure these bases are covered you will be able to feel both proud and secure in your new home.

Cari & Doug Anderson with Diversified Mortgage Group…925.964.1213

CariAndDoug.com

Cari CA DRE #01220718  Doug CA DRE #01165309

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By Cari Anderson, February 24, 2010 9:11 am

Mid Week Brief

Economic News:  Yesterday started the beginning of a busy reporting week in the form of the Case-Shiller Home Price Index as well as Consumer Confidence.  Case-Shiller revealed mixed data but did point toward continued price stabilization for the seasonally adjusted data.  Consumer Confidence had an unexpected drop and returned to the April 2009 levels.  This morning’s New Home Sales numbers were released and were down 11.2% with an expected annual rate of 309,000 units versus the 348,000 forecasted.  New home supply rose from 8 months to 9.1 months.  There was also a FDIC release yesterday that increased the number of troubled banks and reported that their reserve balance fell into negative territory at the end of 2009.

Mortgage Markets:  Yesterday’s news brought a rally into the bond markets.  In addition, the 2 year note auction went well.  The mortgage market was greeted by price changes for the better by about .25 in fee.  30 year rates are still holding on to sub 5%.  This morning markets are fairly quiet but keep a keen eye on how the day progresses ahead of the economic reports for the remainder of the week.

Upcoming For Thursday & FridayThursday:  Durable Goods Orders. Friday:  Gross Domestic Product, Consumer Sentiment & Existing Home Sales.

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By Cari Anderson, February 22, 2010 12:23 pm

In case you’ve been in a cave for about a year you’ve probably heard that rates are at all time historic lows. If you’re a homeowner and have sufficient equity in your home (and sometimes even if you haven’t!) you’ve probably refinanced into an attractive fixed rate loan to take advantage of these rock-bottom rates.

However, there are still many of you out there that either have not refinanced or are not yet a homeowner and are ready to take advantage of lower home prices and affordable financing. If that’s you, and you’re thinking that a fixed rate mortgage is the only way to go, I’d like to try to open up your mind to adjustable rate mortgages (or ARMs).

If you’re still with me and haven’t closed this webpage muttering expletives under your breath I want to first dispel a huge myth about ARMs: they are not responsible for the recent “mortgage meltdown.”
Actually the meltdown was caused by teaser rates, zero-down loans, maximum leveraging and ridiculously lax lending guidelines. In fact, if you took out an ARM in the last 5 years, your rate today is most likely quite a bit lower!

Sometimes an ARM is a smarter way to go than a fixed. For instance, right now (as of 2/22/10) the going rate on a conforming 5 year fixed ARM (meaning the rate is fixed for 5 years and then it begins to adjust) is a shockingly low 3.5%!* A comparable 30 year fixed rate is 4.875%**. So consider this: if there is any chance that in the next 5 years you might be selling your house, this is truly a no-brainer. In just 5 years on a $417,000 loan you could save over $20,000 by choosing a 5 year ARM over a 30 year fixed!

But what if you remain in the home over the initial 5 year fixed period and you then move into the adjustable remainder of the loan? Will your payment skyrocket? What if rates have climbed? Even if rates rise, ARM loans have caps on how high the rate can go above the original start rate. An experienced loan officer will show you all the possibilities associated with an ARM loan so you can make an educated decision. Perhaps a fixed rate IS the best choice for your situation but don’t automatically assume an ARM isn’t until you’ve been presented both scenarios.

Give us a call and we will be happy to educate you on ALL your options!

*APR: 3.644%

**APR: 5.031%

Cari & Doug Anderson with Diversified Mortgage Group…925.964.1213

CariAndDoug.com

Cari CA DRE #01220718  Doug CA DRE #01165309

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By Cari Anderson, February 22, 2010 10:32 am

Mortgage Update for the beginning of the week

Economic News:  A quiet day is in store for the markets today.  No real economic reports are due but as the week rolls on there will be a bevy of reporting which will give us a glimpse on how well the economic recovery is doing.  Here is what is in the pipeline for the rest of the week.  Tuesday:  Case-Shiller Home Price Index & Consumer Confidence.  Wednesday:  New Home Sales. Thursday:  Durable Goods Orders. Friday:  Gross Domestic Product, Consumer Sentiment & Existing Home Sales.

Mortgage Markets:  Mortgage rates are unchanged over Friday’s close with the 10 Year Bond steady at 3.79%.  The mortgage backed securities market is also flat.  As the data for the week progresses keep an eye out for the near term rate direction.  If you are purchasing or refinancing this will be a week to pay attention to.

Cari & Doug Anderson with Diversified Mortgage Group…925.964.1213

CariAndDoug.com

Cari CA DRE #01220718  Doug CA DRE #01165309

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By Cari Anderson, February 19, 2010 9:43 am

As I briefly discussed earlier today the Federal Reserve increased the Discount Rate by .25% after the market close yesterday.  The full press release is available here.  As mentioned in the statement, the FED “anticipates that economic conditions are likely to warrant exceptionally low levels of the federal funds rate for an extended period”.  This should keep a lid on an aggressive upward movement of interest rates in the near term. It is good news that that they are trying to remain “ahead of the curve” on the inflation front while keeping in mind that the economic recovery is fragile.

Those of us in the Real Estate industry, as well as the general public, should be aware and engaged (no matter what side you fall on) that there is much debate on the current spending levels of the government and what they portend for the future.  On the 16^th of this month the President of the Federal Reserve Bank of Kansas City, Thomas M. Hoenig, gave a speech outlining his views on our current fiscal situation.  One brief excerpt: 

“First, the worst choice for our long-term stability, but perhaps the easiest option in the face of short-term political pressures: We can knock on the central bank’s door and request or demand that it “print” money to buy the swelling amounts of government debt. Second, perhaps more tolerable politically, although damaging to our economy: We can do nothing so long as domestic and foreign markets are willing to fund our borrowing needs at inevitably higher interest rates. Or third, the most difficult and probably the least palatable politically: We can act now to implement programs that reduce spending and increase revenues to a more sustainable level.”

The full speech(11 pages double spaced) is worth the read.  As this year moves on we are all expecting higher rates and hope that the powers that be are able to successfully walk a very fine line in the aftermath of one of the most trying times for the financial markets in the history of our country.  As the FED begins to unwind the quantitative easing, remove stimulus programs and put us back on a more traditional path it is my hope to see the return of normally functioning markets sooner rather than later.

Cari & Doug Anderson with Diversified Mortgage Group…925.964.1213

CariAndDoug.com

Cari CA DRE #01220718  Doug CA DRE #01165309

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By Cari Anderson, February 19, 2010 9:30 am

Recently the Federal Reserve has been taking steps to unwind the fiscal stimulus programs which were put in place during the financial crisis which came on full force in the fall of 2008.  We are all aware that the Fed intends to cease its 1.25 trillion dollar Mortgage Backed Security purchase program at the end of March.  The commercial paper program (liquidity provided to some of the largest companies) to smooth out short-term cash requirements is over.  In addition, the home buyer tax credits passed by Congress are set to expire soon.

But, after the closing bell yesterday the FED announced (apart from a Federal Open Market Committee FOMC meeting) that they are going to raise the discount rate by .25%.  That move took a lot of market participants by surprise and assisted in a significant drop in the overseas equity markets overnight.  We need to make a differentiation between the Discount Rate (what the FED is charging banks for emergency loans) and the Fed Funds Rate (what will affect the Prime Rate for equity lines, credit cards etc.).  This is seen as a “shot across the bow” on the recent monetary policy.  The FED has said this is not a new stance (but one that is pushing banks to borrow privately and not from the government) and does not figure into a change in direction with the FED FUNDS rate which is believed to remain unchanged over the next several months.  We will see what effect all of this has on the fragile economic recovery under way and the “talking heads” will be going back and forth discussing the matter.

As the US markets open this morning they have made up for a lot of the losses which were showing in the pre-market futures.  There were mid day mortgage rate changes for the worse yesterday so let’s see what happens to mortgage rates as today goes on.  This morning’s Wall Street Journal article explains this move in greater detail.

Cari & Doug Anderson with Diversified Mortgage Group…925.964.1213

CariAndDoug.com

Cari CA DRE #01220718  Doug CA DRE #01165309