How Does a Reverse Mortgage Work - We Explain Everything You Need

A reverse mortgage is a loan for senior homeowners that uses  the home’s equity as collateral. The loan generally does not have to be repaid until the last surviving homeowner permanently moves out of the property or passes away. At that time, the estate has approximately 6 months to repay the balance of the reverse mortgage or sell the home to pay off the balance. Any remaining equity is inherited by the estate. The estate is not personally liable if the home sells for less than the balance of the reverse mortgage.

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How poor credit costs you on homeowners insurance

If your home sits by the ocean, atop a fire-prone canyon or even in a not-so-nice neighborhood, you probably know you're paying more for homeowners insurance, but something even closer to home may be driving your monthly payments higher: your personal credit score.

Lower credit scores are widely known to impact mortgage availability and rates, but what most home buyers don't know is that they also increase the cost of homeowners insurance.

CLICK HERE FOR THE REST OF THE STORY FROM THE LOVELY DIANA OLICK AT REALTY CECK

 Neal Paskvan is a full time Realtor specializing in Downers grove, Darien,Woodridge, Westmont and Du page county Real Estate

FICO launches new credit scoring model to benefit millions of consumers

According to a FICO statement, the credit score changes will weigh medical debt less heavily than unpaid credit card debt and other collection information.























click here for the rest of the story from wallstreet.com

Neal Paskvan is a full time Realtor specializing in Downers grove, Darien,Woodridge, Westmont and Du page county Real Estate

Your Home Has 3 Zones

YOUR HOME'S THREE ZONES

Did you know every well designed home has three basic zones?  Each of these zones is for a specific need, including

Service

 Social

 Private.

 How they work together will determine how well your home will serve you. Let's take a look at the three zones.

Neal Paskvan Baird And Warner

The first is the Service Zone.   This is where the busy work takes place, such as laundry and cooking. It's usually the place where you'll find major appliances, a utility area, kitchen, hobby room or garage. The hum of the washer and dryer, odors of food being prepared, along with the noise of power tools let's you know this is where it all happens. Having this area away from the social and private zones facilitates the reduction of noise and it's safer.

The second zone is the Social Zone.   It's where family members enjoy the company of each other, dine with guests, watch TV or play games. These activities take place in the dining and living rooms, the family and rec rooms, breakfast room, den or on the deck and patio. We usually pay more attention to the decor in these spaces, making them attractive, inviting and comfortable.

The Private Zone is the third area.   It's the most personal and important of all spaces. This is where family members sleep, bathe or just spend quiet time alone. Good design calls for these spaces to be the most secluded and buffered from the social zone.

There are exceptions to the above rules. For instance, some owner's suites will include a stackable washer and dryer in the private bath. It can offer great convenience. Likewise, many people entertain in the kitchen, making this a combination social and service area.

Whether staying put, remodeling or buying, take a look at these zones and see how your home stacks up. Just keep in mind that the best arrangement is the one that works for you.

Copyright PropertySource Network 2009

Thinking of Selling? New Construction Will Soon Be New Competition

Thinking of Selling? New Construction Will Soon Be New Competition

Bottom Line

If you areFor the last several years, home sellers had to compete with huge inventories of distressed properties (foreclosures and short sales). The great news is that the supply of these properties is falling like a rock in the vast majority of housing markets. Many homeowners are now thinking of selling as the impact of this substantially discounted competition has disappeared.

However, every seller of an existing residential property must realize that there is a new form of competition about to hit the market: newly constructed homes.

As the economy improves, builders will again be bringing their housing developments to the market. Trulia recently reported that the purchaser, given a choice, actually prefers new construction. Here are two charts showing the results of the Trulia survey: thinking of selling, perhaps you should do it now to avoid the additional competition that will come to the market later this year.

click here for the rest of the story from keeping current matters

Time to downsize? Not for baby boomers

In an edited interview, the director of strategic planning for Fannie Mae's economics group said that though such a wholesale change probably is inevitable, boomers these days show little inclination to leave the single-family home lifestyle that, to an extent, has defined their generation:

Q: Isn't there a general story line that boomers hit 65, become empty nesters, look around at the unused bedrooms that the kids once occupied in their houses, and announce that they're paring down to a smaller space where somebody else will handle the maintenance?

click here for the rest of the story from Mary Umberger- Chicago tribune 

A: Yes. There's a perception, particularly in many media reports, that this massive generation born between 1946 and 1964 is altering its "housing consumption." It's true that they're becoming empty nesters in droves.

DOWNERS GROVE REAL ESTATE
Baby boomers not ready to downsize - chicagotribune.com

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hot off the press july 2014newsletter

Yes, hot off the press the July 2014 Baird Warner newsletter is out chock-full of money-saving ideas and other stuff just makes senseFind out where the closest drive-in movies are to get out there and see one Neal Paskvan is a full time Realtor specializing in Downers grove, Darien,Woodridge, Westmont and Du page county Real Estate

You Don't Need That Much of a Down Payment

Consumers believe they need 11 percent to 15 percent in order for lenders to approve them for a loan, aaccording to a survey of renters and non-home-owners



But in reality, home buyers often can qualify for a conforming, conventional mortgage with a down payment of as little as 5 percent — and sometimes even 3 percent 







click here for the rest of the story from Realtor magazine

Neal Paskvan is a full time Realtor specializing in Downers grove, Darien,Woodridge, Westmont and Du page county Real Estate

More Home Owners Spruce Up Their Homes

The National Association of Home Builders’ Remodeling Market Index shows remodeling activity at its highest reading since the first quarter of 2004. The index was at 57 in the fourth quarter of 2013. Any reading above 50 indicates more remodelers report market activity is higher than those who report lower. The index’s future market conditions rose to 58, the highest reading since recording of that measure began in 2005.

"Steady existing home sales, historically favorable interest rates for home buyers and rising home equity have combined to release some of the pent-up demand for home remodeling from the past few years," says NAHB Chief Economist David Crowe. "This quarter's RMI reading shows that the slow but steady improvement in the remodeling market will continue in 2014."

The National Association of the Remodeling Industry’s fourth quarter Remodeling Business Pulse data also showed an uptick in remodeling activity. The biggest reasons cited for an increase in home remodeling were home owners needing to do projects they had postponed and improving home prices.

“The fourth quarter of this year was very strong for many remodelers, as reflected in the Remodeling Business Pulse Survey,” says Tom O’Grady, chairman of NARI’s Strategic Planning & Research Committee. “Average sale prices continue to rise, and consumers are more comfortable spending money on projects that will increase the value of their homes.”

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New Mortgage Rules Take Effect Friday

The rules that go into effect include the “ability to repay” rule, in which borrowers must have the financial means to be able to repay the loan amount. 

The Qualified Mortgage standard will also take effect. Qualified mortgages cannot be made to a borrower with a debt-to-income ratio of greater than 43 percent, Cordray explained. Qualified mortgages also cannot have certain risky features, “such as paying interest only or even negatively amortizing so that each month the consumer owes more than they did before and loans must have relatively reasonable points and fees,”  Cordr

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Today's Prices Compared to Peak [INFOGRAPHIC]

Today's Prices Compared to Peak [INFOGRAPHIC]

Chicago-area foreclosure filings rise in October

Foreclosure filings in the Chicago area rose 30 percent in October from a month earlier but remained well below their year-ago level, RealtyTrac reported.

In an area from Kenosha, Wis., to Northwest Indiana, 3,442 new foreclosure actions were filed last month, the company reported. That compared with 2,653 in September and 5,496 in October 2012.

Click here for the rest of the story from our friend Mary EllenPodmolik

3 Big Reasons Why Home Sales Are Falling

What’s behind the drop in sales? NAR’s chief economist Lawrence Yun pinpoints three main factors: Higher mortgage rates, constrained inventories, and continuing tight credit.

1. Higher mortgage rates: The 30-year fixed-rate mortgage is up nearly a full percentage point in the past year, causing home buyers to face an increase in borrowing costs. The 30-year fixed-rate mortgage increased to 4.26 percent in November compared to a 3.35 percent average in November 2012, Freddie Mac reports. 

The Federal Reserve announced this week that it would begin winding down its bond-buying stimulus program next month, which is expected to result in higher mortgage rates. The average 30-year fixed-rate mortgage could likely rise to 5 percent or 5.5 percent next year, Yun notes. 

2. Tight credit: New rules defining Qualified Mortgage will take effect soon, and could leave more borrowers on the sidelines. “New underwriting rules to protect borrowers, effective in January, will prohibit many loan features, set tighter limits on the amount of debt a borrower can have and still get a mortgage, and require that lenders accurately measure a borrower’s ability to repay,” says Steve Brown, NAR’s president. “This means that qualified borrowers are getting a loan that they are very likely to be able to repay, but some borrowers may wind up paying much more for their mortgage, or not get a loan at all due to the tougher standards. The new rules may tighten

Lenders Urged to Improve Foreclosure Efforts

The Obama administration urged banks to improve their service of the government’s anti-foreclosure efforts through the Making Home Affordable Program and to use federal funds more effectively in helping to save struggling home owners from foreclosure.
The U.S. Treasury singled out CitiMortgage Inc., telling the bank it needed to make “substantial improvement” in its loan modification efforts through the Home Affordable Modification Program and to reach out to more home owners who are eligible to receive assistance.
The Treasury provides financial incentives to mortgage servicers under HAMP, which aims to encourage servicers to change the terms of struggling borrowers’ mortgages and lower their m

click here for the rest of the story at realtor daily news

2012-13 Cost vs. Value: Make the First Impression Count

Real estate professionals ranked exterior improvement projects as winning the buyers’ eye and providing sellers with the most return on investment.

pdating the outside of a home pays off, according to this year’s Cost vs. Value Report.

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13 tips for selling your home in winter - MSN Real Estate

here are some great tipsfrom     at MSN Real Estate on making sure your home is ready to show in the winter

Sure, there are fewer buyers and the skies are gloomy. So warm and brighten up the place; make it look like a refuge from the weather.

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Looking out for Grandma and Grandpa and Moms and Dads and questioning your own sanity

By earning the SRES^® Designation, Neal Paskvan has demonstrated the necessary knowledge and expertise to counsel clients age 50+ through major financial and lifestyle transitions involved in relocating, refinancing, or selling the family home.

" I thought I had a pretty good handle on all the In's and Out's of dealing with all the emotions and options on helping a loved one transition from a very independent life style into a a better environment.. a more mature" Said Neal.

"My Brother and I personally went thou this situation with my Dad, a few years ago and as well together( much we were all on the same page about this,Dad included)  we were all on this... when the time came to make the move and get dad into a better palace for him.

We found ourselves on the phone for days trying to find the right fit for him

" I learned so much about how things have changed in a few short years, and that there are now many recourse's and options available to help family transition the more mature into a safer place and that does not just mean a" nursing home"

show your A/C unit some love this weekend

Due to the wet weather this spring in Chicagoland  the littlecottonwood “Snowflakes” fell early!

 

Cottonwood   Clogs A/C  COILS

Think about it for a moment… During the peak of cottonwood season, fuzzies are flying around your neighbor hood. This is when they attack your air conditioner. No they don’t use magic, or contain some sort of chemical agent. Instead, they are sucked into your condenser coil, and the result is reduced air flow across the coil. This will first cause your air conditioner to loose some of its energy efficiency. Although this is a problem, losing a little efficiency will only cost you pennies, but the bigger problem of an over heated compressor can cost hundreds.
Picture this, its 100 degrees outside and your cottonwood seed packed coil can’t cool itself off. Do you see the problem here? Those cute little fuzzies we chase around as kids just burnt out your compressor! Now you have to call up for an emergency service call in the high heat of summer.

From what the experts' tell me, the simple solution is to just fully hose down the grill work around your A/C unit so it can do it’s job!

Click here to see a Video on how it's done

“Neal Paskvan is a Real Estate Agent in Downers Grove with Baird and Warner”

Downers Grove Real Estate... Did you know there are over 600 Homes for Sale in Downers Grove Right Now?

Did you know there are over 600 Homes for Sale in Downers Grove Right Now?    Prices Range from $33,000 to 3.5 Million

Search Powered by Baird and Warner ChicagoLands #1 Home Search Site

Click here to See all Downers Grove Homes for Sale

Neal Paskvan is a Real Estate Broker with Baird and Warner

You can Contact Neal any time to get more info on any property

Click here to get ALL my Contact info

WHO DETERMINES YOUR CREDIT SCORE

FICO stands for Fair Isaac Corporation, which is the company that created the industry standard credit scores used by almost all lenders. FICO has been in business since the 1950s but began building the famous FICO score in the mid 1980s.

What’s in your FICO® score
FICO Scores are calculated from a lot of different credit data in your credit report. This data can be grouped into five categories as outlined below. The percentages in the chart reflect how important each of the categories is in determining your FICO score.

These percentages are based on the importance of the five categories for the general population. For particular groups - for example, people who have not been using credit long - the importance of these categories may be somewhat different.
Payment History

Account payment information on specific types of accounts (credit cards, retail accounts, installment loans, finance company accounts, mortgage, etc.)

• Presence of adverse public records (bankruptcy, judgements, suits, liens, wage attachments, etc.), collection items, and/or delinquency (past due items)

• Severity of delinquency (how long past due)

• Amount past due on delinquent accounts or collection items

• Time since (recency of) past due items (delinquency), adverse public records (if any), or collection items (if any)

• Number of past due items on file

• Number of accounts paid as agreed

Amounts Owed

• Amount owing on accounts
• Amount owing on specific types of accounts
• Lack of a specific type of balance, in some cases
• Number of accounts with balances
• Proportion of credit lines used (proportion of balances to total credit limits on certain types of revolving accounts)
• Proportion of installment loan amounts still owing (proportion of balance to original loan amount on certain types of installment loans)

Length of Credit History

• Time since accounts opened
• Time since accounts opened, by specific type of account
• Time since account activity

New Credit

• Number of recently opened accounts, and proportion of accounts that are recently opened, by type of account
• Number of recent credit inquiries
• Time since recent account opening(s), by type of account
• Time since credit inquiry(s)
• Re-establishment of positive credit history following past payment problems

Types of Credit Used

• Number of (presence, prevalence, and recent information on) various types of accounts (credit cards, retail accounts, installment loans, mortgage, consumer finance accounts, etc.)

Please note that:

• A FICO score takes into consideration all these categories of information, not just one or two.
  No one piece of information or factor alone will determine your score.
• The importance of any factor depends on the overall information in your credit report.
  For some people, a given factor may be more important than for someone else with a different credit history. In addition, as the information in your credit report changes, so does the importance of any factor in determining your FICO score. Thus, it's impossible to say exactly how important any single factor is in determining your score - even the levels of importance shown here are for the general population, and will be different for different credit profiles. What's important is the mix of information, which varies from person to person, and for any one person over time.
• Your FICO score only looks at information in your credit report.
  However, lenders look at many things when making a credit decision including your income, how long you have worked at your present job and the kind of credit you are requesting.
• Your score considers both positive and negative information in your credit report.
  Late payments will lower your score, but establishing or re-establishing a good track record of making payments on time will raise your FICO credit score.

Neal Paskvan is a Real Estate Agent with Baird and Warner in Downers Grove and has a team ready to answer any of you credit questions