Annual Percentage Rate

What is the Real Cost of Financing?

Annual Percentage Rate (APR) is a tool that consumers can use as a starting point to compare loan programs. However, it’s important to keep in mind that APR is not a perfect system, and not all lenders calculate APR in the same way. While the Federal Truth-in-Lending Act does require any mortgage broker or lender to disclose APR to the consumer, there is no rule written in stone for calculating this number that each and every lender agrees upon.

The point of calculating APR is to let the consumer know what the actual cost of their financing is in the form of a yearly rate. APR factors in certain closing costs and fees associated with the loan, and spreads this total over the life of the loan along with the actual note rate. The objective is to give the consumer a clearer picture of what their actual costs are, and this inhibits lenders from hiding fees or upfront costs behind low interest rates in their advertising.

Fees that are generally included in the APR calculation are points, pre-paid interest, loan processing fees, underwriting fees, document preparation fees, and private mortgage insurance. On occasion, lenders will include a loan application fee and/or credit life insurance. Fees that are normally not included in the APR calculation are fees from Title, Escrow, attorney, notary, document preparation, home inspection, recording, transfer taxes, credit report and appraisal.

Remember, all lenders do not perform the calculation the same way. Moreover, APR does not consider the possibility of making pre-payments, moving or refinancing. Unless the interest rate is tied to a fixed instrument, APR is even more confusing. Calculating APRs on adjustable rate and balloon mortgages is more complex because we really have no way of knowing what future rates will be.

If all lenders calculated APR the same way, we could make easy comparisons when deciding on what loan program to go with. Since they don’t, the consumer should know that APR is simply a starting point for comparison. They should rely on the skills of a well-versed loan professional to assist them in obtaining the loan that meets their specific needs. The more important things to consider are how long the loan is needed. What are the long-term goals of the borrower? If the homebuyer only expects to stay in the home for five years, there’s not a lot of sense in looking exclusively at 30-Year Fixed rates because the APR seems more reasonable. If a young couple is buying a home, knowing they will refinance in eight years to pay for their son’s college education, then once again, APR is not a realistic factor to take into consideration.

The Loan Executive should be prepared to answer questions about APR once the lender provides the Truth-in-Lending Disclosure Statement (Reg Z), such as why the “amount financed” listed in Box C is not the same as the actual loan amount, and why the APR is higher than the interest rate on the loan in most cases. The consumer will get a clear definition about the fees associated with their loan in the good-faith estimate, but the Truth-in-Lending Disclosure is often an area that is confusing to the borrower.

Adopt Diamond a purebred Chihuahua

Adopt me, I will love you unconditionally

Here are some pictures of Diamond.  She will need to be the only dog in the home and she does get along with dogs, cats, or kids.   Diamond is a purebred toy Chihuahua AKC registered and up to date on all her shots. There will be an adoption fee.  Diamond’s owner has all of her papers.  If you haveany interest in adopting Diamond please call today.  443-982-0075

Condos and Home Associations

Are condos a good investment?

Condominiums have held their value as an investment despite economic downturns and problems with some associations. In fact, condos have appreciated more in the past few years than when they first came on the scene in the late 1970s and early 1980s, experts say.

While there are lots of reports about homeowners association disputes and construction-defect problems, the industry has worked hard to turn its image around. Elected volunteers who serve on association boards are better trained at handling complex budget and legal issues, for example, while many boards go to great lengths to avoid the kind of protracted and expensive litigation that has hurt resale value in the past.

Meanwhile, changing demographics are making condominiums more attractive investments for single homebuyers, empty nesters and first-time buyers in expensive markets.

What kinds of rules and regulations do Associations regulate?

Typical covenants, codes and restrictions (CC&Rs), which govern condo associations, give the board authority to make and enforce reasonable rules for the use of common property. But that would not apply to interior spaces owned by smokers themselves.

A homeowners association’s board of directors can restrict smoking if it applies to indoor common spaces such as hallways or recreation rooms. Outdoor spaces are a different story, say legal experts. Any restriction would probably hinge on local laws (i.e. if a city banned smoking outdoors, a homeowners association probably could restrict smoking in its outdoor spaces).

The 1990 Americans with Disabilities Act does not require strictly residential apartments and single-family homes to be made accessible. But all new construction of public accommodations or commercial projects (such as a government building or a shopping mall) must be accessible. New multi-family construction also falls into this category.

In all states, the Federal Fair Housing Act provides protection against discrimination for people with physical or mental disabilities. Discrimination includes the refusal to make reasonable modifications to buildings that aren’t accessible to the disabled.

What fees can I expect to pay a home association?

Condominium owners pay a fee, usually monthly, to the homeowner’s association to cover the costs of managing and maintaining all common areas. In addition, you may pay extra assessments for major maintenance projects. In general these must be voted on by the association board or in some cases by all of the owners. The particular cost of monthly fees and the rules regarding special assessments vary from association to association. When considering a condominium, it’s a good idea to thoroughly research the fees and bylaws of the condo association.

Are homeowner association fees tax deductible?

Homeowners association fees are considered personal living expenses and are not tax-deductible. If, however, an association has a special assessment to make one or more capital improvements, condo owners may be able to add the expense to their cost basis. Cost basis is a term for the money an owner spends for permanent improvements throughout their time in the home and is used to reduce eventual capital gains taxes when the property is sold. For example, if the association puts a new roof on a building, the expense could be considered part of a condo owner’s cost basis only if they lived directly underneath it. Overall improvements to common areas, such as the installation of a swimming pool, need to be considered on a case-by-case basis but most can be included in the cost basis of any owner who can show their home directly benefits from the work.

 

Nearly all men can stand adversity, but if you want to test a man’s character, give him power.

A thankful heart

When you feel the impulse to be judgmental, let that be a cue for you to first be thankful. When you discover that you’re focusing on what’s wrong, use that as a reminder of all the many things that are right. 

Immediately upon waking each morning, think of ten things you are grateful for at the moment. As you fall asleep at the end of the day, fill your thoughts with thankfulness for the good and valuable blessings in your life.

Give the power of your thoughts to the positive influences in your world, and they will become more influential. Remind yourself often of what works well, and you’ll naturally find ways to make many other things work well. 

The way to enjoy success is not to study failure. The way to experience success is to extend and expand the success you already know. Gratitude is so powerful because it makes you so powerful. 

Gratitude puts you in a positive frame of reference within which many more positive things can happen. Begin each day, end each day, and live each day with a sincerely thankful heart. And as each day passes, you’ll have more and more for which to be thankful.

How strong is your Energy Source?

The way to get more energy in your life is to use it. Get yourself started, and you’ll get the energy flowing. 

The most powerful and sustainable energy does not come from outside sources. The energy you use to effectively get things done comes from the purpose that is inside you. 

When you’re engaged in something truly meaningful, there’s no need to search for the energy to do it. That energy is with you in great abundance. To plug any activity into your energy source, connect it to your authentic purpose. 

When you know without a doubt why it is important, you’ll find everything necessary to get it done. The more useful and valuable things you do with your life, the more energy you’ll have available for even greater accomplishments. 

Take a small step forward, and you make a bigger step possible. Put the energy you have into meaningful pursuits. And you’ll soon be making even more energy for other important endeavors.

 

I look forward to sharing again with you soon. 

To your Success!!!

Come out and cook with one of DC’s top 25 Chefs William Redd

A Special Invitation   Dear ,  We are very excited to invite you to a special event hosted by our Executive Chef William Redd. The event is open to only 40 people and is being filled on a first come first served basis. Email me soon if you’re interested. I hope to see you there!  The Legacy Hotel & Meeting Centre and Phillips Seafood Restaurant presents:  Cooking with the Chef  Featuring Executive Chef William Redd  Wednesday, November 5, 6 p.m. to 8 p.m.  $35.00 per person  Learn tips on cooking some of our favorite seafood dishes like:  - Phillips famous crab cakes  - Salmon, keeping it moist  - How to shuck and eat oysters and clams  - Chicken, roasting and storing  - Creating seafood dishes with proper garnishing  Work side by side with the chef and prepare items from the beginning stage to the finished product. You’ll get to taste and enjoy every meal, paired with wine, and take home special Phillips seasonings, the dish recipe and a complimentary appetizer on your next visit to the Rockville Phillips here at the Legacy Hotel.  For additional information please contact The Legacy Hotel at 301-881-2300.  To get your name on the list, email me quickly, space is limited.  Kind regards,  Rosalind McCollough  Director of Sales and Marketing  The Legacy Hotel & Meeting Centre  1775 Rockville Pike  Rockville, MD 20852  www.TheLegacyRockville.com

Cooking with the Chef Featuring Executive Chef William Redd Contact Us Today! Click Here to Secure your Space*»

Researching real estate

Looking for a home can sometimes be an overwhelming task.

I’d like to offer a bit of advice that might help.

What’s the perfect neighborhood for you? What style of home
would you like to purchase? How much can you afford? Planning
ahead can help you to avoid many of the headaches involved in a
home purchase. If you know exactly what you want, it makes it
much easier to find it.

I’m very familiar with the area, the market conditions and I would be
happy to put my years of experience to work for you! Feel free to
e-mail me a list of your needs and I’ll put together a FREE custom
presentation for you! I’m available if you’d like help finding the perfect
home.

Call anytime.  443-982-0075

 

Success is a journey, not only a destination. The doing is often more important than the outcome.

Measure the Potential Future Impact

The key to success in setting priorities is having a long time perspective. You can tell how important something is today by measuring its potential future impact on your life.

For example, if you come home from work at night and choose to play with your children or spend time with your spouse, rather than watch TV or read the paper, you have a long time perspective. You know that investing time in the health and happiness of your children and your spouse is a very valuable, high-priority use of time. The potential future impact of quality time with your family is very high.

If you take additional courses in the evening to upgrade your skills and make yourself more valuable to your employer, you’re acting with a long time perspective. Learning something practical and useful can have a long-term effect on your career.

 

 

The finest eloquence is that which gets things done, and the worst is that which delays them.

The Key to Peak Performance

The antidote to these fears is the development of courage, character and self-esteem. The opposite of fear is actually love, self-love and self-respect. Acting with courage in a fearful situation is simply a technique that boosts our regard for ourselves to such a degree that our fears subside and lose their ability to effect our behavior and our decisions.

If anything is worth trying at all, it’s worth trying at least 10 times.

Control Your Reactions and Responses

There are three basic differences in the reactions of optimists and pessimists. The first difference is that the optimist sees a setback as temporary, while the pessimist sees it as permanent. The optimist sees an unfortunate event, such as an order that falls through or a sales call that fails, as a temporary event, something that is limited in time and that has no real impact on the future. The pessimist, on the other hand, sees negative events as permanent, as part of life and destiny.  

E+R=O  Event+Response= The Outcome

I have found that being honest is the best technique I can use. Right upfront, tell people what you’re trying to accomplish and what you’re willing to sacrifice to accomplish it.