Santa Clarita's Real Estate Lender

Homefront Finance - Investment Property: Growing Your Wealth

Keith & Jason Renno (Pacific Funding Mortgage Division) — Mon, 23 Apr 2012 16:50:21 -0700

Investment Property:
Growing Your Wealth

April 2012

If you're looking for a way to grow your nest egg, investing in real estate is still a great idea. There are many reasons to purchase a rental property, and the market is still favoring buyers! With today's low rates and home prices, your purchasing power is strong, allowing you to get more home for the money.

Benefits of owning investment properties include:

1. Diversity in your financial portfolio

2. Rental rates are climbing as demand for rentals increases

3. Rising income from rental fees over time mean more cash in your pocket as you pay off your mortgage

4. Tax benefits of depreciation and expenses*

Why Invest Now?
Numerous market factors make now a great time for investing. Here are the two main reasons you should be seriously considering investing in real estate:

Historically low interest rates. It's been all over the news: interest rates are lower than they have ever been. While we've been enjoying this trend for months, it can't last forever. Every rise in interest rates — even as little as an eighth of a percent — reduces your purchasing power, meaning you get less property for the money.

Very low housing prices. Not only are rates at historic lows, but housing prices are down as well. A backlog of homes on the market — a 6.1-month supply at the end of January, according to the National Association of REALTORS® — helps to keep prices low in areas all across the country. The Case-Shiller Index indicates home prices are at levels last seen in late 2002; but again, there's no telling how long this will last.

Combine the low rates with low housing prices and you've got the ultimate opportunity to invest in real estate. Experts still agree that long-term investment in real estate is a smart choice. With the market so favorable to buyers, there's no time like the present to work on building your wealth!

Is Investing in Real Estate Right for You?
Investing in real estate is not for everyone, of course. You must be prepared to landlord your property or to hire a management company to maintain it for you. Despite the favorable market, there is no guarantee that things will stay this way; you must be prepared to take a loss, as you would on any investment you make. You should be willing to hold on to any property you purchase for at least several years as the market is not favorable to sellers at this time and we don't know when that will change. And of course, there is no guarantee that you will be able to rent a property to capacity, continuously, at a price that covers your expenses.

But the benefits of purchasing investment property outweigh the negatives for many people. If you're ready to investigate how investment properties can enhance your financial portfolio, I can help you review your finances and determine the strategy and financing options that can benefit you the most. Call me today to take advantage of the market and invest in your future!

* We are not a tax advisory firm. The information contained in this article is for informational purposes only and may not reflect current tax year rules and regulations. Consult your tax advisor or the IRS for current tax year rules, restrictions and regulations.

Homefront - Trends in Interior Design

Keith & Jason Renno (Pacific Funding Mortgage Division) — Wed, 18 Apr 2012 11:12:53 -0700

Trends in Interior Design

April 2012

Fashion isn't just for clothes. Your home reflects your tastes and style, and decorating your home in the latest trends can make you just as fashion-forward as having the hottest designer bag, shoes or sunglasses. Even if you're short on cash, you can make your home look modern by tracking current trends and adding inexpensive versions or accents to your own living space. Plus, choosing new classic colors, décor and furnishings means you won't have to repaint in a year or completely redecorate next season.

So what are the trends of 2012 that we think will be around for more than just this year? Here are some hot styles you can use to update your own humble abode:

Bold and bright are back. Tangerine is being touted as 2012's color of the year. Yellow complements tangerine and is a hot accent color in its own right. These bright hues infuse any room with energy and enthusiasm. Green and turquoise were popular at the imm cologne design expo held in January. Even neons can be found leaving the runway and appearing around the home. Pair these eye-popping palettes with gray, the chicest of the neutrals.

Bring nature inside. Wood is good, especially light oaks. Mix different grains and types of wood for an all-natural patterning effect. Natural stone is also showing up on countertops and in artistic touches. Choose light-wood furniture and go for a slightly unfinished, rough look, so that it almost appears as if you've made it out in the woodshed. Consider putting up wooden beams across the ceiling in one of your larger rooms for that back-to-nature feel.

Respect the environment. Sustainability is not just for your food and energy. You'll find many furniture manufacturers now tout the sustainability of their materials. It's also much easier to purchase environment-friendly products, from floor coverings to linens to furniture to fixtures, as more companies are eager to promote their green agendas. Look for recycled materials, and visit http://www.sustainablefurnishings.org to locate green designers, retailers and manufacturers.

Natural lighting. Big windows, northern exposures and skylights are in fashion this year — then again, when isn't natural light a wonderful enhancement to any home? Using natural light is even part of the "go green" trend, helping you save money on energy and reduce your carbon footprint. Add reflecting surfaces such as mirrors, metal fixtures and objects and even crystals, which have been trending over the past several years, to reflect even more light and add depth to any room.

Flexibility and smaller sizes. As the era of the McMansion is left [thankfully] behind, furnishings are adjusting to smaller-sized rooms, not only shrinking but also become multi-purpose or moveable. Select a modular sofa that can be adjusted to create a larger or smaller seating arrangement. Invest in a desk that has a much smaller footprint; after all, our computers and components are shrinking so your workspace can, too. Fancy footstools in accent colors that work in any room of the house offer flexible seating options and drop-leaf or extending tables can expand for company and contract for everyday space saving. Even your giant flatscreen can be hidden in a cupboard that also holds movies and game hardware.

Few of us can run out and scoop up the latest pieces by top designers. But we can use this year's style trends — most of which seem destined to become standards of interior design — to launch our own decorating revolutions, turning our homes into showcases that are stylish, modern and homey all at the same time.

Homefront Finance - Taxes and Your Mortgage

Keith & Jason Renno (Pacific Funding Mortgage Division) — Thu, 15 Mar 2012 11:16:00 -0700

Taxes and Your Mortgage

March 2011

The mortgage interest tax deduction, introduced in 1913, is used by millions of Americans to lower the taxes they pay. If you are itemizing your taxes on IRS form Schedule A, you own the home and the mortgage is a secured debt, then usually you can deduct the total of your mortgage interest payments.

Types of Interest
Mortgage interest includes interest you paid on loans to buy a home, home equity lines of credit and construction loans. The amount you can deduct is limited. Plus, you can only deduct interest paid on your main home and a second home. If you own more than two homes or your second home is also used as a rental property, you should consult a qualified tax specialist to determine your interest deduction allowances.

If you refinance without adding to the amount you owe, then all interest generated by the mortgage remains tax deductible. If you do take out additional loans against the equity in your home, for example with a cash-out refinance, then you will have limits on the amount of interest you can deduct. If your mortgage was secured to purchase land and build a home, you may also deduct the interest.

The above types of loans are considered "acquisition debt": you used them to acquire or improve a property. There is a $1 million limit on acquisition debt for the purposes of interest deduction. On an "equity debt," a loan taken out for other purposes that draws on the equity on your home (such as a HELOC), you are limited to deducting interest on $100,000 or less. Some other restrictions may apply as well.

Additional Deductions
If you pay points on your mortgage, they are fully deductible in the year they are paid for your primary and secondary residences. However, points paid on refinancing must be amortized over the life of the loan. You can see what points you paid on the statement your lender sends you at the end of the year, Form 1098, or on your HUD-1 closing statement.

State and local property tax is also deductible if you own the home. If you bought or sold real estate during the year, the real estate taxes must be divided between the buyer and the seller. Taxes placed in escrow are deductible but your entire escrow may not be; you need to consult your escrow company to determine the amount of real estate tax that was paid.

If you own investment properties, you can deduct interest on the loan you obtained to purchase the property, the expenses you incur such as retaining a property manager and repairs to the property. You can also get credit on depreciation of the property. There are numerous benefits to owning investment homes: your tenants help you pay off the mortgage, you get a number of tax write-offs and in general the property will help you lower your overall taxes. Consult a tax advisor for more information.

Preparing for Tax Time
Your mortgage lender(s) will send you a Mortgage Interest Statement, Form 1098, at the end of the year. This form reports the total interest that you paid during the tax year. You do not need to attach these to your return, since the financial institution sends a copy of Form 1098 directly to the IRS. If you bought or sold a home, you will also need the HUD-1 Settlement Statement from your escrow company.

If you have more questions about purchasing or refinancing your home, I'd be happy to discuss your options. Call me today to learn more about making your mortgage work for you!

* We are not a tax advisory firm. The information contained in this article is for informational purposes only and may not reflect current tax year rules and regulations. Consult your tax advisor or the IRS for current tax year rules, restrictions and regulations.

Homefront - Energy Efficient Appliances: Worth it?

Keith & Jason Renno (Pacific Funding Mortgage Division) — Fri, 09 Mar 2012 11:11:51 -0800

Energy Efficient Appliances: Are They Worth the Investment?

March 2012

Trying to save money while lessening your impact on the environment is a popular trend these days. Choosing to purchase energy-efficient appliances is one way to save green while going green. But are these appliances all they're promising to be?

The Pros and Cons
Frankly, there is no easy answer. Appliances have increased their energy efficiency steadily over time, while generally not increasing in price at the same pace. So why pay more for an appliance labeled "energy efficient"? The immediate cost of purchasing a house full of new energy-efficient appliances is just not practical for most people, especially in this economy.

Plus, a study by Consumer Reports found that many people don't use their appliances correctly, which can actually mean they spend more money because they need to run the dishwasher twice to get the dishes clean. Following directions and adhering to manufacturers' recommendations is critical to enjoying savings from energy-efficient models.

You should also be aware that most of the highly touted tax advantages of purchasing energy-efficient large appliances have expired. In addition, if you're not planning to be in the home for a number of years, you won't have a chance to recoup the significant initial outlay that many of these items require.

However, if you remain in the home for a number of years and you are able to save 10 percent per year on your energy costs, over time you'll be saving thousands of dollars. When you do decide to sell your home, you'll have newer appliances that will be attractive to a potential borrower, plus you can promote the energy savings of those appliances – two big selling points. In addition, many energy-efficient products are among the highest quality appliances available.

Energy Star
The Environmental Protection Agency started the Energy Star program in 1992, covering computers and monitors. In 1996 the EPA and the Department of Energy teamed up to expand the Energy Star program as a voluntary labeling system to promote energy efficiency and environmental awareness and reduce greenhouse gas for a wide range of products. You can now find the Energy Star label on more than 60 types of products, as well as home assessment tools to determine your home energy efficiency. Energy Star-labeled products must meet strict energy efficiency guidelines. Visit energystar.gov to learn more about the program.

If You Decide to Purchase
If you decide to start shopping for energy-efficient home appliances, here are some tips to help you make the best decision for your needs.

Check local rebates and offers. Many areas offer discounts and rebates when you purchase energy-efficient equipment. You can check http://www.energystar.gov/index.cfm?fuseaction=rebate.rebate_locator to see what money-saving offers exist in your zip code.
Measure your space. Some models may be larger than your current appliances. Make sure you know how much room you have and how much is needed to open a door or for ventilation.
Weigh purchase price and energy usage. You may actually find that the models that are more expensive initially will provide greater savings over time.
Use the Energy Guide label as a guide. Nearly all appliances except microwaves, stoves and dryers have this label. The information on the label will help you compare across different brands and models.
Check for an Energy Star logo. These items must meet strict standards of efficiency and may save you up to a third of your current energy bill when used properly.

Save money, increase the comfort of your home, reduce your carbon footprint: if you can afford the initial outlay and plan to stay in your home for a longer period of time, replacing your current appliance with more energy-efficient models may be the right choice for you!

Homefront Finance - Getting Your Home Loan: 3 Easy Steps

Keith & Jason Renno (Pacific Funding Mortgage Division) — Tue, 28 Feb 2012 15:18:14 -0800

Getting Your Home Loan: 3 Easy Steps

Feb. 2012

Whether you've already purchased a home or know of someone who is looking to buy a home or refinance, here is a simple outline of the steps you need to take before you walk into the mortgage originator's office to apply for your home financing.

1. Perform your own financial review.

o Obtain copies of your credit reports. You can get a free copy from each of the three credit reporting agencies once every year. Correct any errors immediately, before you begin the home loan process.

o Create a budget. Decide how much you are comfortable spending on your housing. Use online mortgage calculators to take a look at different scenarios. Remember you'll also need to factor in taxes, homeowners insurance and home repairs and upkeep – you can't call the landlord to fix a broken water heater when it's your water heater.

o Do some research. Find out about available home loans and special incentives in your area so you can make an educated decision. While your loan officer will also offer guidance and explain the different options available to you, gathering information on your own will empower you as you start the process.

2. Gather documentation.

o Pay stubs for the previous month

o W-2 forms for the last two years

o Child support/alimony documents

o Awards letter for Social Security and 1099 for disability income

o Information on rental properties, commissions, or other sources of income besides salary

o Bank, stock and securities statements for the last three months

o If you own rental property, provide rental agreements and two years of tax returns

o For gift funds – a gift letter, evidence of transfer and sometimes evidence of withdrawal

o Cancelled rent or mortgage payment checks for past 12 months, if not available on credit report

o Divorce decree

o Explanation of discrepancies in credit

o Self-employed applicants will need additional documentation, including two years' of tax returns

3. Remember these "don'ts".

o Don't go shopping for new furniture yet. Or buy a new car, jewelry or other high-end items. You don't want a ding on your credit report before your loan officer takes a look at it.

o Don't move your money to a new bank, make large transfers between accounts or make large deposits or withdrawals. All your finances must be documented and you want it to be as easy as possible to track your money.

o Don't change jobs. Your lender is looking for a stable work history as that is an indicator of your reliability in regards to making your loan payments.

o Don't pay off all your debt. It sounds counterintuitive, but you need to show a good payment history, so having accounts open to which you make regular payments is actually a good thing.

A home purchase is the biggest transaction most people make in a lifetime, but it doesn't have to be intimidating or even confusing. Once you've prepared by following the steps above, the fun part begins: selecting your loan officer and real estate agent and starting your home search. Remember, there are many programs out there to fit many different financial profiles, and with rates at historic lows and home prices also super affordable, you've made a good decision for your future!

Contact me today to start the home loan process and get on the path to becoming a homeowner!

Homefront - How to Start a Neighborhood Watch Group

Keith & Jason Renno (Pacific Funding Mortgage Division) — Thu, 16 Feb 2012 20:02:03 -0800

Protect Your Investment: How to Start
a Neighborhood Watch Group

Feb. 2012

Your neighborhood can feel like your family when you find the right home and the right location. Building relationships with your neighbors while you make your home your own is exciting and can foster a sense of protectiveness and pride. One way to show your pride in your neighborhood while also ensuring you live in a safe environment is to start a Neighborhood Watch group.

Founded in 1972, the Neighborhood Watch program encourages residents to partner with local law enforcement to keep a watchful eye on the happenings in their community and to show a strong and vigilant presence to deter crime and violence. According to www.ncpc.org, the website for the national Crime Prevention Council, "Neighborhood Watch works because it reduces opportunities for crime to occur."

Actually, the best place to start when you're looking to launch a Neighborhood Watch is to visit www.ncpc.org. Here you'll find numerous resources, including a checklist detailing how to set up your initial meeting, tips for making that meeting successful and information on making local law enforcement and businesses partners in your Neighborhood Watch.

Next, you'll need to gather crime statistics for your area, talk to victims of crime, and find out how your neighbors perceive the crime rate in your area. Arming yourself with facts will help ensure your organization focuses on the real problems in the neighborhood and doesn't get sidetracked into pet projects (or peeves).

When you're ready to get started, look to your neighbors. Find like-minded people who believe that controlling crime, maintaining order and looking out for one another are the building blocks to create a safer and better living environment. Organize a meet-and-greet event and be sure to tell the people you know to invite others that you may not have met yet. Make an effort to include the people you may not see every day: the elderly, young people, shift workers. These residents may see things others do not.

The first meeting should be used to elect a coordinator and to ask for volunteers to be block captains, who will gather information and notify residents of meetings, disseminate information about crimes in the neighborhood and help liaise with local law enforcement.

Remember, Neighborhood Watch is not about spying on your neighbors. From cleaning up vacant properties, to paying attention to the activities of the children on your street, to going door to door to meet the people in your neighborhood and recruit them to your organization, Neighborhood Watch entwines your life and your well-being with the well-being of your neighborhood. Even low-crime areas benefit from having neighbors watching out for each other and their families, cleaning up litter and promoting public safety.

Launching a Neighborhood Watch is a positive way to get involved in your community, meet new people and raise the standard of living for yourself and the people you see every day. It's an effective and inexpensive way to raise the value of the place you call home, not just in property values but in the eyes of those who live, shop, eat, visit and work in your community.

Homefront - Kitchen Improvements that Boost Home Value

Keith & Jason Renno (Pacific Funding Mortgage Division) — Fri, 20 Jan 2012 19:22:08 -0800

Kitchen Improvements that
Boost Home Value

Jan. 2012

Picking the right upgrades can help set your home apart and above the competition in a hotly contested real estate market. Moreover, kitchen upgrades are the sorts of improvements that you and your family will benefit from and enjoy, given that the kitchen serves as the nexus for many families. You cook in your kitchen, you eat there, you talk there, and you even play there, so why not make it the best it can be?

When you pencil things out, the numbers of a kitchen upgrade are quite compelling in terms of adding value to a home while giving you upgrades that you will enjoy throughout the use of your kitchen. A major kitchen upgrade with a budget of $57,500 can recoup 66 percent of its cost when the home is sold, according to Remodeling magazine's "2011-12 Cost vs. Value Report." If you want to give your home a competitive edge while adding to its enjoyment, here are some great kitchen improvements to consider:

A professional-style sink that helps you prepare food in addition to cleaning dishes. Many options offer features such as removable trays for cutting food and racks for knives and other cutlery so that you can chop veggies and quickly clean up.
A hands-free faucet you operate by tapping it with your arm or elbow. This is a great way to prevent cross-contamination by keeping hands that have been cutting food from spreading germs to your faucet.
A pot-filler above your stovetop. This lets you fill up cooking pots while they sit on your range, which obviates the need to toddle back and forth across the kitchen balancing full pots while trying not to suffer a major spill.
A kitchen island that incorporates both a sink and electrical outlets along with the extra countertop, drawers and cupboards. This gives you additional workspace that you can truly use for food preparation.
A kitchen wine cooler to properly store your wine collection so that it is at the right temperature and well preserved. This will motivate you to collect and reserve unique bottles to highlight special occasions.
New countertops that buck the dominant trend. Sure, granite has been the trendy counter material, but there are some new options, such as recycled wood, bamboo, recycled glass, and unique tiles, that not only give your kitchen a custom look, but are also friendly to Mother Earth.
Kitchen cabinet replacements that focus on functionality. Don't just go for looks. Add kitchen cabinets that deliver storage and organization features that emphasize efficient use of space and that truly improve your kitchen efficiency.

Homefront Finance - Protect Yourself from Identity Theft

Keith & Jason Renno (Pacific Funding Mortgage Division) — Fri, 20 Jan 2012 19:16:01 -0800

Protect Yourself from Identity Theft

Jan. 2012

What is identity theft?

Identity theft occurs when someone uses your personal identifying information, like your name, Social Security number or credit card number, without your permission, to commit fraud or other crimes.

How can you find out if your identity was stolen?

The best way to find out is to monitor your accounts and bank statements each month, and check your credit report at least once per year from each of the three major credit bureaus. You can request a free credit report at www.annualcreditreport.com.

You can minimize your risk of becoming a victim of identity theft by making it more difficult for identity thieves to access your personal information. Here are some tips from the Federal Trade Commission to help protect you from becoming a victim.

Shred financial documents and paperwork with personal information, before you discard them.
Protect your Social Security number. Don't carry your Social Security card in your wallet or write your Social Security number on a check. Ask to use another identifier, if possible.
Don't give out personal information on the phone, through the mail or over the Internet, unless you know whom you are dealing with.
Never click on links sent in unsolicited emails. Use firewalls, anti-spyware and anti-virus software to protect your home computer; keep them up-to-date.
Don't use an obvious password like your birth date, your mother's maiden name, or the last four digits of your Social Security number.
Keep your personal information in a secure place at home, especially if you have roommates, employ outside help or are having work done in your house.
Purchase an identity theft insurance policy to recover stolen funds or to pay for legal and/or other fees associated with recovering your identity.

By using these simple tips as a precaution you can greatly reduce the chances of having your identity stolen. Be sure to share them with your friends and family!

Homefront Finance - Planning Your Estate with a Revocable Living Trust

Keith & Jason Renno (Pacific Funding Mortgage Division) — Thu, 15 Dec 2011 19:16:38 -0800

Planning Your Estate with a Revocable Living Trust

Dec. 2011

No one ever wants to consider estate planning. (Mulling over your mortality doesn't posses much appeal, as a rule.) However, properly ensuring that your loved ones will benefit from your estate while having to deal with as little trouble as possible is critical.

One key estate planning document you should consider is a revocable living trust (RLT). An RLT is akin to a will in that it describes and controls how your estate goes to your beneficiaries, but it differs from a will in many ways.

A primary difference is probate. A will essentially dictates to whom your estate should go to upon your death and how, but wills are typically held up in the process know as probate. Probate allows a judge to review and confirm the will, to ensure that that your last wishes are indeed being carried out to your specifications, and then your assets are moved to your beneficiaries. In some states, that process can last as long as two years and can require your beneficiaries to pay statutory fees before some assets, such as real estate, can be transferred to them.

But an RLT avoids this. An RLT is established by a person referred to as the grantor or trustor, and is managed by someone called the trustee, who is often the grantor, but not always. The trust could have multiple co-trustees, such as a husband or wife, or even an institution. A successor trustee is also established. This is the person who will manage the trust when the grantor dies or becomes unable to manage the trust due to some incapacity.

That is an important element to an RLT, because unlike a will, your beneficiaries are taken care of by an RLT even if you do not pass away. If, for example, you were rendered comatose, your loved ones would still be taken care of. Because of this RLTs are worth considering not just in cases of classic "what will happen in the event of my death" types of estate planning, but even for young married couples with children, and other individuals who have people depending on them.

This is another difference between an RLT and a will – the trust holds your assets while you are alive. When an RLT is established, you "fund" the trust by putting your assets into the trust, but you still have full control of your assets while you are alive and have your faculties. You are simply now controlling them as a trustee of the trust.

If you were to pass away, the assets are already part of the trust, and can then be transferred to your beneficiaries without having to go through probate. This is also helpful if children are involved. The trust can be set up in such a way to administer how they are benefited by the estate, so that the assets can't be squandered or mismanaged. This also helps you avoid the need to establish a guardianship or conservatorship.

There are other benefits to an RLT, as well, such as being able to get the full benefit of estate tax exemptions, and keeping your estate out of the public view that would otherwise occur in probate. That said, RLTs are typically more expensive to establish than drawing up a will, because they involve more planning.

If you're interested in learning more, make sure to contact an estate planner who can take you through the steps of establishing an RLT in greater detail. Making informed decisions about how your estate is managed might be a tough task to face, but you'll rest easy knowing that you did.

Renno Team| Mortgage Update Video 12-1-2011

Keith & Jason Renno (Pacific Funding Mortgage Division) — Fri, 09 Dec 2011 16:44:50 -0800

Homefront - Ten Holiday Home Projects

Keith & Jason Renno (Pacific Funding Mortgage Division) — Thu, 08 Dec 2011 16:14:30 -0800

Ten Holiday Home Projects

Dec. 2011

As winter weather and quickly fading sunlight bring an end to exterior home projects and landscaping, homeowners must turn their attention to the inside of their homes. While the holiday hustle and bustle might seem like a difficult time to schedule in any household projects, it's a great opportunity to address smaller scale home maintenance and repairs that don't gobble up too much schedule space. Here are 10 great ways to keep the home humming in fifth gear during the holiday season:

Consider wrapping your hot water heater tank to help keep water temperature high and drive down your utility bills. Make sure to get proper instructions on how to install, and pay close attention to all safety requirements.
Similarly, get some duct tape and pipe insulation from the local home store and wrap your hot water pipes. Not only will you save money, but you won't have to wait all morning for your shower to warm up.
Inspect and clean your laundry appliances. First, unplug them from any outlets. Then start with the washer by disconnecting the water hoses and see if the fiber or rubber washers need replacing. Disconnect the vent hose from your dryer and clean any built-up lint.
Clean underneath your refrigerator, and clean off its coils, and change your fridge's water filter if it features water dispenser.
Inspect the grout on your kitchen and bathroom tiling around sinks, showers and tubs and clean and repair where necessary.
Remove the drains from your sinks and clean them thoroughly. Also, remove the lower, u-shaped "trap" under your sinks and remove any clogs. Similarly, remove showerheads and any removable faucet heads and soak them in vinegar to clean off mineral build-up.
Tighten things up by going from room to room with flat-head and Phillips-head screwdrivers, as well as some Allen keys, securing any loose hardware on furniture, cupboards and similar fixtures.
Have any banged up wooden furniture? Sanding down and re-finishing dings and scratches is something that can be accomplished out of the way and on a manageable scale. Make sure to do any refinishing in a well-ventilated area.
As the season winds to a close, make sure to take down any holiday lights. If you staple your strings of lights to your home's exterior, make sure to fully remove the staples with a pair of pliers to prevent them from rusting and spoiling your home's trim.
Make sure to mulch any Christmas trees and similar decorations, such as wreaths and garlands. Most home stores and tree sellers provide mulching services, and your city or county trash service might do so as well.

Homefront Finance - Dealing with Income Loss

Keith & Jason Renno (Pacific Funding Mortgage Division) — Thu, 17 Nov 2011 12:32:33 -0800

Dealing with Income Loss

Nov. 2011

We read a lot about job losses and unemployment rates in today's economic headlines, but there's another element to many Americans' employment situations: income loss. Perhaps you lost your job and had to take another for lower pay, or maybe your employer announced pay cuts throughout the organization, or has called for work furloughs. Whatever the reason, there are a number of Americans grappling with the issue of income loss. If you're one of them, don't worry; you can weather this storm. Here are some ways to get out in front of a reduction in your pay:

Seek better opportunities. Believe it or not, many people actually don't start looking for another job when they undergo pay and benefit cuts. Perhaps it's out of loyalty, perhaps it's out of a hope that their current employer will do better, or perhaps it's because they take one look at 9 percent unemployment rates and conclude there's no hope of finding something else. Whatever the reason, you should look. An employer cutting salaries today could be cutting jobs tomorrow. Also, whatever your employer might say, pay cuts are ultimately open ended. Your employer can promise to reestablish your original pay rate, but who's to say it actually will?
Look for replacement income. If you have a marketable skill, consider finding weekend or evening work that would allow you to drive home some more income. Obviously, working extra hours is not an ideal situation, but it might be necessary for the short term. If you do this work on a contract or freelance basis, make sure to cover your bases in terms of Federal and state income taxes. Your tax rate on self-employed income will be higher, and you might need to pay on a quarterly basis. But the flip-side is that you will also have some additional deductions. Consider involving a certified public accountant that can help you from a tax-planning perspective.
Slash recurring expenses. Start to get crafty when it comes to utility, food, transportation and other regular outlays. Do you need all those cable channels? Can you ratchet down your Internet service to something with lower-bandwidth? Have you explored bundling utilities? Are you clipping coupons? The old saying that if you take care of your pennies your dollars will take care of themselves is very true. Grab your recent receipts, start building a budget, and look where you can cut.
Nuke your revolving debt. If you have credit cards, you need to focus all your attention on eliminating that kind of debt, and guarding against any future run-ups in that kind of revolving debt. At the same time, unless you are in trouble with your mortgage, car payments or student loans, leave those alone. Those forms of non-revolving debt are some of the cheapest money you can borrow.

Lastly, remember that your salary does not equate to your worth as an individual. Americans are a career- and success-driven people, but don't permit your resume or your salary to define your value as a person. Instead, focus on the ways that you can not only survive, but thrive despite any cuts to your income.

Homefront - Ten Ways to Beat Winter Heating Costs

Keith & Jason Renno (Pacific Funding Mortgage Division) — Tue, 15 Nov 2011 12:03:30 -0800

Ten Ways to Beat Winter Heating Costs

Nov. 2011

Winter fast approaches, and as colder temperatures begin to chill your home, chances are you're bracing yourself for another unwelcome seasonal spike in your home heating costs.

The average U.S. household spends more than $2,200 on home heating costs each year, and obviously a home's gas and electricity consumption shoots skyward as the temperature drops. That said, there are a lot of great ways to cut your heating costs as the days grow shorter and the weather becomes colder. Let's take a look at 10 great ways to do that:

1. Use a programmable thermostat. These can save $100 a year in energy costs by giving you control over when you heat your home and by how much, as well as being able to have it shut off when you'll be out.

2. You might have heard it before, but replace your heating and ventilation system's air filter on at least a bi-monthly basis in order to ensure it doesn't have to work overly hard and consume too much power.

3. Similarly, keep vents and baseboard heaters and registers clear of any blockage due to furniture and similar impediments to ensure smooth airflow.

4. Consider replacing your heating system if it is older than 15 years. A newer, more efficient system might quickly pencil out in terms of energy savings and any possible rebates for offerings such as the Environmental Protection Agency's and Department of Energy's Energy Star program.

5. Seal things up. Check for heat leaks in typical places, such as doors, windows and fireplace dampers. A great way to do that is by holding a lit candle near the seams on these fixtures. If the flame flickers, you have a leak, and it's time to get out the caulk and weather stripping, and go to work.

6. Light switch plates and outlet plates can also cause drafts. Check them, as well, and use pre-cut foam gaskets to help seal up any of these items that have a leak.

7. Ceiling fans can help move heat around your home. If you have one, set it for its slowest speed in reverse to help draw warm air down from the ceiling to the floor, without causing a breeze.

8. Instead of cranking the heat up prior to going to bed, opt for the old fashioned technique of using a hot water bottle to pre-heat your bed. Water does a better job of retaining heat and will give you a comfy snooze.

9. Consider using insulating paint or an insulating additive to your paint (such as those available from Insuladd® or Hy-Tech®). Using special ceramic additives, these paints and additives help seal cracks and other imperfections that can cause heat loss, and can deliver as much as a 20 percent savings on heating costs, according to manufacturer claims. They also can help dampen noise and offer a more even coating.

10. For your holiday decorating, try to use LED holiday bulbs to add sparkle to your home without gobbling up electricity. Believe it or not, but 12 old style, incandescent bulbs use the same wattage as 2,000 medium-size LED lights.

Industry Insider - Consult and Collaborate to Get the Business

Keith & Jason Renno (Pacific Funding Mortgage Division) — Thu, 03 Nov 2011 15:58:03 -0700

Consult and Collaborate to Get the Business

Nov. 2011

If you're having trouble determining when is the best time to make a proposal to a client, chances are you are not approaching your sales with a process-driven methodology. More than likely, the sales you are engaged in are far more consultative than simply taking orders, so you need to have a process. Consider collaboration.

You're probably dealing with a range of customers, each with their own needs of varying complexity. That's why it is important for you to consult and collaborate with your clients to help them determine what they want and then help them attain it. Stick to that mission – help your client understand his or her needs and then help fill those needs – and your sales process will always be moving toward delivering a proposal.

So how do you implement that collaborative, consultative approach? The key is to ask questions, and then actively listen to what your clients have to say in response.

Start by querying a client on his or her situation, goals, plans, the challenges he or she faces or expects to face. Then start asking about factors that could impact the ways in which that client could reach his or her objectives. You want to help organize these considerations to help the client arrive at a plan. The more you empathize with and seek to understand your customer's situation, the more you will be able to present a solution (i.e., your proposal). Moreover, along the way, you'll be developing trust and positioning yourself as an advisor and expert resource for that client.

To be that expert, you must make sure that you understand your product and services offerings backwards and forwards. You want to ensure that as you are asking questions and learning about your client's needs that you can start envisioning the various products or services that can help him or her. Also, ensure that you have the right referral partners in place. You might need outside help, and you want to be able to put together a package deal, even if it involves a third party.

When you finally feel confident you know what your customer needs, then you can present the client with your solution – this is the moment you are asking for the business. You tell the client that you have developed an optimal set of offerings to help them solve the problems they are facing or help the customer achieve the goal they want. You want to put together a complete solution that you can describe inside and out.

If you've done your job extremely well, then you might be able to convince your client to approve and sign the deal right there and then, but chances are that the customer will want to revise or change the deal. That should not bother you.

In fact, it is part of the collaborative process. True, your first proposal might knock it out of the park, but chances are, you might need to work your way around the bases before you get to cross home plate. So, don't balk at any resistance. Instead, expect it and work with the client to more finely tune the solution. Ask more questions and keep striving to better understand the client's needs and situation.

If you keep working with the client in a collaborative fashion, not only will you ensure that you get the business, but position yourself as a valued and trusted resource that client will want to return to, again and again.

Homefront Finance - Getting Started with a Roth IRA

Keith & Jason Renno (Pacific Funding Mortgage Division) — Thu, 20 Oct 2011 16:16:49 -0700

Getting Started with a Roth IRA

Oct. 2011

These days, many people are taking their retirement into their own hands. While it's nice to rely on an employers 401(K) plan – let alone the largely bygone benefit of a pension – many individuals are feeling like they don't have the control they once had.

For instance, of the many companies that reduced or stopped their fund matching for their 401(K) programs in 2008, only 49 percent of them had resumed those contributions by 2010, according to researchers at Towers Watson. As a result, some might consider seeing what they can do with their own retirement account management.

And even then, that assumes full-time work. Many individuals who were laid off by employers have transitioned to part-time or freelance/contract work status in the face of an extremely difficult job market. Those self-starters must find ways to manage their retirement investing all by themselves.

Enter the Roth IRA. A Roth IRA is an individual retirement account that lets people invest up to a certain amount each year with the earnings gained on those investments coming to them entirely tax-free. While their wealth accumulates, they do not pay taxes. And when they cash out, they do not pay taxes.

The trade-off is that they can only invest so much in those accounts. The yearly cap on what investors can put in Roth IRAs depends on the investor's filing status (individual; married, filing jointly; etc.), but for a typical person filing individually earning under $107,000 annually, the Roth IRA contribution limit is $5,000. The caps hinge on income in order to ensure that normal, everyday working folks are able to fund their retirement, while at the same time preventing extremely wealthy people from being able to capitalize on a government-created tax shelter. (The IRS publication 590, available online, provides complete guidelines on income caps for Roth IRAs.)

Once you invest in a Roth IRA, you're given the option of putting your money in various growth vehicles, just like any other retirement account. You can invest in funds, stocks, CDs, bonds and money markets, as well as mix your investments to come up with a balanced retirement account.

Unlike some investment accounts, you can withdraw your contributions at any time without incurring a penalty. This can be a huge relief in case of financial emergency. That said, you cannot withdraw any earnings made on those contributions without incurring a penalty. If you withdraw your earnings you will get hit with not only taxes on those earnings, but a 10 percent fee as well. Again, Roth IRAs are set up to be retirement accounts, and their rules encourage that.

You can also withdraw up to $10,000 in both contributions and earnings, tax- and penalty-free, from a Roth IRA to invest in a home. For couples this can be a boon, as they can both withdraw from their Roth IRAs, meaning they now have $20,000 to put to a new home. The key is that the account must have been active for at least five years.

If you encounter financial difficulty, federal law exempts Roth IRAs from bankruptcy claims of up to $1 million. Plus, most states protect Roth IRAs, up to a certain amount, from creditors.

To get started, you can reach out to any investment firm. It's best to define what types of investments you're considering making, such as funds or money markets, and then contact a firm that specializes in those investments (or a firm that offers an array of investment services). Many of them require a minimum deposit to get started, which will average roughly $2,500, depending on the firm.