Several recent developments could help you save thousands of dollars on health-insurance premiums. For one thing, this year’s economic-stimulus legislation included a health-insurance subsidy for laid-off workers. In many states, new laws allow children to be covered by their parents’ policies until they reach their mid twenties. And early retirees can now purchase insurance that will cover them until they qualify for Medicare.

You’ve Been Laid Off

When you lose your job, you may be able to get coverage from your spouse’s employer, continue your own coverage through COBRA – the federal law that lets former employees continue group coverage for up to 18 months – or search for an individual policy. Compare all three options: Many employers no longer subsidize coverage for family members, so adding on to your spouse’s plan could be expensive.

COBRA is available to employees of companies with 20 or more workers, and you can’t be rejected or charged a higher rate because of your health. But you’ll have to pay the full cost yourself, which averages $12,600 per year for family coverage and $4,700 per year for individuals, according to the Kaiser Family Foundation.

Under the stimulus legislation, Uncle Sam will pay 65% of COBRA premiums for up to nine months for people who lose their job between September 1, 2008, and December 31, 2009. But if you’re healthy, you might still get a better deal on your own. Melissa Harrison, 32, lost her job as a horticulturalist at a nursery in Summerville, S.C., in early February, just weeks before Congress passed the stimulus. She could have stayed on her old policy through COBRA, but her premiums would have jumped from $200 per month to $480. She went to eHealthInsurance.com, used a tool that lists the insurance networks that included her doctor, and found a policy issued by Celtic for $190 per month. The policy carries a $1,500 deductible, doesn’t charge for annual exams and screenings, and offers maximum coverage of $7 million.

Harrison qualified for the 65% COBRA subsidy a few weeks later, but she turned it down. She would have saved only about $20 a month with the subsidy, and the price would have jumped back up to $480 after nine months. Plus, she liked the Celtic policy better – especially because she had been paying out-of-network charges to visit her doctor under her employer’s plan.

Harrison concedes that it’s tough to focus on shopping for health insurance when you’re worrying about finding work. “But my mother drilled into me that you have to have insurance,” she says. “If you have a little time, you can get a better deal than COBRA and find a policy that fits you better, too.”

You Have Health Issues

Premiums will be pricier if you’re older or have medical conditions. Laura and Shaun Best of Stevenson Ranch, Cal., own a locksmith business specializing in bank security. The couple also have three kids between the ages of 13 and 20. The Bests have had their own health insurance for a long time, but the premiums kept creeping up. When they reached $929 per month, Laura, 47, started looking for alternatives and found a policy through Anthem Blue Cross for $305 per month. “I wasn’t surprised that I could find less-expensive insurance, although I was not expecting to save as much as we are,” she says.

One reason the Bests’ health insurance was so expensive was that Shaun, 52, has high blood pressure. But each insurer looks at health conditions differently. “One insurer may charge a lot for a particular condition, while another might offer the same person the lowest possible rate,” says Scott Leavitt, a health-insurance agent in Boise, Idaho, who generally gathers medical records and gets prices from at least three insurers for clients with medical conditions (find a local agent at www.nahu.org).

The Bests also saved money by making some trade-offs. They wanted insurance their doctor accepted, but they didn’t mind a $2,500 deductible because they plan to use HealthyCheck centers, which charge just $25 for basic visits and screenings. They opted not to pay for prescription coverage because Shaun’s medications are currently available at many pharmacies for $3 and $5. And they gave the insurer extra medical records showing that Shaun’s high blood pressure has been well controlled for 30 years with a very low dosage of medication. The search paid off, saving them more than $7,000 per year in health-insurance premiums.

Several insurers recently introduced new policies targeted specifically at people in their fifties and early sixties. Aetna’s AARP policies are easy to shop for online and lessen restrictions for medical conditions common to that age group, such as hypertension, high cholesterol and weight gain.

If private insurers reject you, 33 states offer coverage through high-risk pools. Other states may have at least one insurer that accepts anyone, or they may require insurers to provide continuation policies for people with health conditions after they exhaust COBRA. Contact your state insurance department or visit www.coverageforall.org to find out your options.

You’re a Recent Grad

At the other end of the spectrum are new college graduates who are having a tough time finding a job with benefits. In the past, children were generally dropped from their parents’ health insurance when they turned 18 or 19, or when they graduated from college. But more than 20 states now require insurers to cover dependent children on their parents’ policies until the kids are in their mid twenties or thirties, even after graduation.

To qualify for the extended coverage, adult children generally must be unmarried and live in the same state as their parents. But they usually don’t have to live with their parents or even be considered dependents for tax purposes. (Contact your state insurance department for specifics; you’ll find links on the insurance page of Kiplinger.com.)

You may not need to pay extra to keep an adult child on your policy if you’re maintaining a family policy anyway to insure younger siblings. But if the insurer bases premiums on the number of children, or if you’re insuring only one child and could otherwise switch from family coverage to rates for a single person or couple, it’s important to compare that extra cost against the price of buying an individual policy.

Healthy people in their twenties can find particularly good deals on their own. Trevor Cushman, 22, had an emergency appendectomy during his senior year at the University of Southern California. Because of complications, the bill totaled $40,000 – “which is the cost of a full year at my alma mater!” says Cushman. Most of the bill was covered by his parents’ policy. So when the coverage they provided expired as of his graduation last year, he knew how important it was to find insurance of his own.

At first he signed up for a policy with a $5,000 deductible and a monthly premium of $107. But a few months later, he went to eHealthInsurance.com and found a Blue Shield policy for $51 a month with a $2,900 deductible plus coverage for a few doctor visits a year. Says Cushman, “Since I don’t really have any medical conditions and am fairly healthy overall, I really am most concerned with covering the big-ticket ‘surprise’ items – like an emergency appendectomy.”

Save Even More with an HSA

Anyone can lower health-insurance premiums by raising the deductible. If you choose a deductible of at least $1,150 for single coverage or $2,300 for family coverage, you can make a tax-deductible contribution of up to $3,000 (or $5,950 for family coverage) to a health savings account in 2009, which you can use tax-free for medical expenses in any year.

An HSA can be particularly beneficial for early retirees, who can cut their premiums substantially by raising the deductible (you can also contribute an extra $1,000 if you’re 55 or older). For instance, a healthy 55-year-old man in Illinois can get a Humana HSA-eligible policy with a $5,200 deductible for $207 per month, or $179 with no drug benefit.

You can’t contribute to an HSA after you sign up for Medicare, but you can use the money tax-free for medical expenses at any time, and you can use it penalty-free for anything after age 65. You can even use HSA money to cover premiums for Medicare parts A, B and D, and for Medicare Advantage plans (but not to pay medigap premiums). An HSA can also help pay qualified long-term-care premiums. (For special HSA rules if you lose your job, see Ask Kim.)

From Kiplinger’s Personal Finance magazine, August 2009. Reprinted with permission. All Contents © 2009 The Kiplinger Washington Editors. www.kiplinger.com

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It’s tough to argue against the idea of leading an environmentally conscious existence. But, a concern for many people is that going “green” means spending extra money on eco-friendly products. We’ll put that myth to rest with a list of products that will not only help preserve our environment, but our budgets as well.

The GoGreenMug
It is estimated that Americans throw away 25 billion Styrofoam cups and 18 billion paper cups every year. Paper and cardboard make up over 40 percent of the solid waste buried in American landfills. Of that, 40 percent is attributed to disposable coffee cups. Adding to the waste are the plastic lids, straws and cardboard sleeves associated with the purchases made at coffee shops.

One way to help counteract this issue is by purchasing an insulated travel mug. A product that we love is the GoGreenMug available at gogreenmug.com. For less than $15, you can completely personalize a 16-ounce travel mug that will take the place of the hard-to-recycle paper cups found at most coffee shops.

How will this save you money? Many baristas will actually fill your 16-ounce GoGreenMug for the same price as a small coffee. It’s also not unusual for coffee shops to offer discounts to customers who provide their own mugs. Regardless, the GoGreenMug is a fun way to take your coffee on the road while also reducing waste.

CFL Light Bulbs
Switching to compact florescent light bulbs is one of the easiest ways to diminish the energy used in your home, as well as the associated costs. While CFLs are more expensive than incandescent bulbs, they last about 10 times longer. Each bulb actually pays for itself after the first six months of use, and will save you at least 30 dollars over the course of its lifetime.

Aside from using less energy, CFLs reduce the amount of carbon dioxide, sulfur dioxide, nitrogen oxide and mercury released into the atmosphere. To find out more about CFLs, as well as to find a retailer near you, log on to energystar.gov.

Water Filter and Reusable Water Bottles
The bottled water industry is thriving, so it’s no wonder there are concerns regarding the oil it takes to manufacture and ship the polyethylene terephthalate (PET) plastic bottles, as well as the effects on our landfills after they’re discarded. The good news is that the recycling of these bottles is on the rise. The problem, however, is that our dependency on plastic as a whole is taking a toll on our environment.

Another issue is the cost of bottled water. While tap water is not free, the U.S. Conference of Mayors estimates that bottled water costs between 1,000 and 4,000 times more!

We suggest that a great way to do your part, and save money while doing it, is to invest in a water filtration system for your home, as well as a reusable stainless steel drinking bottle. There are many out there to choose from, so opt for models that are right for your lifestyle and budget. No one is saying that bottled water needs to completely go away, as there are many practical uses. A reduction in our use of plastic water bottles, however, will benefit everyone.

Rechargeable Batteries
Even more disturbing than the millions of batteries purchased and thrown away each year, is the fact they contain heavy metals (lead, cadmium and nickel), which can leach into our environment. Whenever a battery is no longer of use, we suggest storing it in a non-disposable container. Every few months you can take the used batteries to a local recycling center. To find a center near you, log onto earth911.com. The search engine located at the top of the homepage is sure to help.

If you are looking to also save money on your battery usage, you may want to think about purchasing rechargeable batteries, as well as a battery charger. Both can be found in many retail locations, but for a great selection and prices check out amazon.com.

Faucet Aerators and Low-flow Showerheads
It is fairly easy to understand why both of these products are good for the environment, and your budget. Not only are you using less water, but you are also heating less water. In turn, your bills will decrease.

Gone are the days when “low-flow” meant a lackluster shower, or drippy faucets. New technology allows for air to be mixed in with the water. In layman’s terms, the aeration provides for less water usage without pressure being sacrificed. In addition, both products are fairly inexpensive and can be easily installed, without the use of any tools.

While both of these products can be found at many hardware and home improvement stores, we ask you to check out ItsEasyBeingGreen.com. There, you will find no shortage of the aforementioned products, as well as many others that are sure to save on energy used, and money spent.

Stainless Steal Drinking Straws
This may not be a product for everyone, but if you’re partial to using drinking straws, or you have children who enjoy smoothies on a regular basis, they’re perfect! In addition to reducing your waste, they add cache to any drink you may serve to dinner guests. Figure on spending $10 for a set of four, but understand that they have the ability to last a lifetime.

Most endurable drinking straws are guaranteed to never rust or tarnish, and can be easily cleaned in the dishwasher. As an added bonus, they add to the coldness factor of any beverage. Conducting a simple Google search should turn up a plethora of buying options.

Go Online
The fact that you are reading this article means you are already online. So, as long as you have a reasonable understanding of computers and the Internet, you may as well be using it to save money, as well as trees and landfill space.

Nowadays many banks and companies are offering “paperless” statements and online bill paying. Just think of the paper that just one person would conserve if they never received a bill in the mail or wrote a check.

The money you’d save would come from not having to mail the check to the company. But, there is another bonus. With online bill paying comes the ability to pay whenever you want. In other words, no more mailing a check a week before it’s due. Simply pay the bill on the day it’s due.

Vinegar
Yes, you read it correctly. White distilled vinegar may be one of the most versatile products, not to mention environmentally friendly and downright cheap to buy. Not only can you do some healthy cooking with vinegar, but it also has over a thousand household uses, everything from cleaning and laundry to pets, garden and automotive.

For tips on how to effectively use white distilled vinegar, log onto vinegartips.com. You will be amazed how many toxic and expensive products you will no longer need to buy.

Final Thoughts on Being Green
There are two final thoughts we’d like to share. The first is the items presented in this article only scratch the surface of products that are both eco-friendly and budget-friendly. Look around your home for products that you regularly use and then discard. Simply replace them with products that are reusable.

Lastly, doing your part to preserve our environment doesn’t have to be about making drastic changes to your life. It is more about making a few minor changes and sticking to them. Don’t feel the need to use all our suggestions. Instead find one or two that work for you and go for it. But whatever you do, please don’t believe the myth that going green means going broke.

Million dollar Family Tip:  Know where your finances are in relation to your goals.  Find out how TrueWealthCFO

First-time homebuyers (FTHB) are taking advantage of one of the best real estate environments we have ever seen. Home affordability this year has been at an all time high with low interest rates and declining home prices. However, buyers on the fence should not be complacent.

Home prices in many markets have not only stabilized but are rising. Interest rates, while still incredibly attractive, could be poised to rise in coming months as stimulus from Washington is scheduled to end in December. Finally, the tax credit of $8,000 for qualifying FTHBs is currently scheduled to end November 30, 2009.

Why Buy a Home?
One of the first questions someone naturally asks themselves as a renter is, “Why should I become a homeowner?” There are many reasons, but probably the first one is the pride in knowing that you have established a foundation for building personal wealth as well as a basis for future memories.

Thinking back to your childhood, many of your fondest memories may be from events in your childhood home. Holidays, birthdays, and family events all typically took place in your home growing up. Anything you and your parents wanted to do to your home, within reason of course, were options of your choosing.

Knowing that you have taken a major step in financial independence also creates a sense of pride that few things can replicate. However, it’s one thing to say owning a home makes sense, it’s another to actually look at how owning a home can help you financially.

Financial Reasons to Buy
Aside from the emotional implications, any decision involving money has to make sense. There are few things anyone can do that have a greater impact on their finances than owning a home.

The reasons to buy your first home are numerous, not only today, but anytime. In a comparison of renters versus homeowners, the U.S. Federal Reserve Board of Consumer Finance found that the average net worth of renters was $4,000 compared to homeowners at $184,400.

Building personal wealth can be accomplished a number of ways but owning a home provides a path that takes advantage of several ways at once, compounding their net impact on your bottom line. Increasing equity leveraged from the reduction of mortgage debt and home price appreciation are one path. Income tax deductions both from the sale and ownership of the property are another.

Move in and Watch it Grow
What do a tree and the impact of owning a home on personal wealth have in common? Neither grow quickly but both grow larger and become stronger over time. A home purchased today at a price of $150,000 will grow in value to $364,000 over 30 years at an appreciation rate of just 3%.

While the impact of home values over the last three years can not be ignored, during the period from 1950-2002, U.S. home prices appreciated at an annual growth rate of 4.8%, or significantly greater than the example just given.

The Impact on Your Wallet – Today
Owning a home creates a number of items that can result in both an immediate and long lasting boost to your wallet. The first is time sensitive and needs to be acted on quickly to benefit.

Income Tax Credit. The income tax credit available from the IRS for up to $8,000 for qualifying FTHBs is scheduled to end November 30, 2009.

Points Pay Twice. Many buyers today are opting to pay points to lower their interest rate. In some cases, this can be a negotiated expense that the seller may pay to incentivize you to purchase their home. Points paid to lower an interest rate are considered pre-paid interest by the IRS and would result in an income tax deduction for the buyer, regardless of who pays it.

Mortgage Interest. One of the largest tax deductions most people report each year is the amount of interest they pay on their mortgage. While not exact, on a $150,000 mortgage with an interest rate of 5.50%, the amount of the first year’s interest would be approximately $8,000. For a family earning $70,000 in a federal tax bracket of 25%, this amounts to a significant savings, effectively reducing the amount of a homeowner’s monthly mortgage payment. For those that pay state income taxes, the impact is even greater.

Private Mortgage Insurance (PMI). PMI is insurance that is mandated by a lender when the amount of a down payment is less than 20% of the purchase price. The purpose of PMI is to protect the lender in the event a borrower later falls into default and the home falls into foreclosure. PMI under most circumstances is a tax deductible expense. Consult your tax advisor for more details.

Real Estate Taxes. Property taxes, which can be normally included in the monthly mortgage payment to your lender are a deductible expense. This deduction also effectively reduces the monthly mortgage payment for the borrower at tax time.

Possibly More Dough. These are not the only expenses that can be deducted from your income at tax time. Other items can include moving expenses associated with a job relocation and home improvements that are deemed energy efficient as determined by the Recovery Act. As always, consult with your tax advisor for specific details about how each type of deduction mentioned in this article could apply to your situation.

Act Now and Plan Accordingly
If you or someone you know plans on purchasing a home in time to take advantage of the tax credit, there are some things to keep in mind. The last day to close to take advantage of the tax credit is Monday, November 30, 2009. Keep in mind, this follows Thanksgiving week. With the holiday offering a shortened work week for many, this will make closing at the end of the month more challenging.

Another item to take into consideration is recent legislation impacting a lender. If the Annual Percentage Rate, or APR, changes by more than .125% from the time of initial application, the lender is required to re-disclose the Truth in Lending statement. When this document must be re-disclosed, time must be allowed for a home buyer to receive the document in the mail and review it for approval.

One way to minimize any need to re-disclose your loan documents is to either lock early in the application process at the interest rate on the loan application or submit an initial loan application with a higher-than-current-market interest rate. So, if current rates are 5.50%, your mortgage professional may suggest your application reflect an interest rate of 5.75% for underwriting and initial loan disclosures.

A prudent buyer may plan for closing to occur no later than November 24, 2009 to allow for any possible delay and still take advantage of the tax credit before it expires on November 30. Another prudent decision would be to allow a minimum of 45 days to get your loan approved and closed. Just be sure that when you lock your interest rate, you allow for a cushion in your lock expiration date in the event your closing is delayed.

This would mean that, for your protection, you should work to get your home under contract not later than the first weekend in October. While some lenders may still be able to accommodate a later purchase contract signing, submitting your application earlier is advisable due to the volume of applications lenders may receive during this time.

Best Path to Take Now
Buying a home today could be the best financial decision a renter can make. Not only does this decision help turn a residence into a home, it establishes a foundation for future personal wealth, both immediately and over time.

To decide what works best for you or someone you know, get pre-approved today so you know exactly what you may qualify for both in purchase price and monthly payment. This one action can remove a lot of stress and simplify the home search process since you will know what you can afford.

For additional information and to help you become a proud homeowner before the December holiday season.

Rebecca W. Bass
Branch Manager
Element Funding Mortgage Bank
Phone: (843)379-0999
Fax: (888)696-6401
rwbass@embarqmail.com
www.rwbass.com

Million dollar Family Tip:  Know where your finances are in relation to your goals.  Find out how TrueWealthCFO

As goes housing, so goes the economy. To combat housing’s recent decline and the impact on consumers and Wall Street alike, the Obama Administration recently released the details of the Homeowner Affordability and Stability Plan (HASP). Whether you own a home or not, the impact of the plan will affect you.

Fortunes have been made and lost on the strength of the housing market and as housing struggles today, so do many Americans. Millions of homeowners have seen the value of their home decline and as a result, whether someone has been looking to refinance into lower a interest rate, sell their home, or purchase their first home, they have felt the pain of the problem.

Combined with other stimulus packages that have been released, like the American Recovery and Reinvestment Act of 2009, from Washington in recent months, the target is clear: put housing back on its feet. The easiest way to accomplish this is to increase home sales and reduce the number of foreclosures and short sales bringing housing and Wall Street to its knees.

Calling All First-Time Home Buyers!
The number of first time buyers has increased each year since 2006, rising from 36% to 41% last year according to the National Association of Realtors. As home prices have fallen significantly since “the peak” and interest rates are near all time lows, for many, there has never been a better time to purchase a home.

However, with the current economy, many prospective buyers may be reluctant to pull the trigger. Home prices though, on a national level, are down 20% to 30% depending on the resource offering the information. Locally, greater opportunities may exist.

For qualifying first-time home buyers, the American Recovery and Reinvestment Act of 2009 amends the $7,500 tax credit. The credit has now been changed in two significant ways. The first is that the potential amount of the credit has been increased to $8,000.

The second change, which is very beneficial, is that where previously the credit had to be repaid to the IRS over a period of up to 15 years, it now does not as long as the homeowners live in the property for at least 3 years. A tax credit is a direct reduction to an income tax liability. It also allows for any amount that exceeds that liability to be paid directly to you. Example, someone has a tax liability of $4,000. They would then receive a refund of $4,000 if the credit they were eligible for was $8,000.

To read more about how the tax credit could impact you or someone you know, the National Association of Home Builders has constructed a website that goes into all the details of the credit which can be seen at www.federalhousingtaxcredit.com.

Homeowner Affordability and Stability Plan Playbook
Who wins from this plan? Every homeowner stands to benefit if the plan delivers on its objective, whether they currently have a mortgage or not. Simply stated, the bill targets the root of the problem, a homeowner’s monthly housing obligation. This will be accomplished through allowing more people to refinance into lower interest rates or modify their existing loan terms.

Many may wonder how everyone wins with this plan. It can be summed up this way. By helping distressed homeowners stay in their homes, it minimizes fallout to property values across the country. And while all real estate is local, one foreclosure can impact nearby properties by up to 9%.

Great Rates + Declining Values = No Refi for You. Maybe Not.
While interest rates have been at levels not seen in generations, not everyone has been able to benefit. As home values have come down across the country millions of homeowners have been unable to refinance.

When applying for a home loan, one key component in underwriting is the amount of equity or down payment in the transaction. As home values have declined, even in some cases where someone put a sizable down payment into the purchase of their home, refinancing to achieve a lower payment has been unfeasible.

In details of the Housing Affordability and Stability Plan released this week, four to five million responsible homeowners have been targeted to obtain assistance in lowering their payments. People who now have less than 20% equity in their home have experienced difficulty in achieving lower payments by refinancing. Homeowners with loans that are owned by Fannie Mae and Freddie Mac may now be able to refinance into a lower interest fixed rate. This will also apply to homeowners with an adjustable rate (ARM).

One caveat will be that the new loan amount will be capped at 105% of the value of the home. As many will seek to include their closing costs in the loan amount, this will need to be factored in when considering this as an option.

To pre-qualify for the Making Home Affordable refinance, you must be able to answer “yes” to each of the following four questions.

1. Is your home your primary residence?
2. Do you have a Fannie Mae or Freddie Mac loan?
3. Are you current on your mortgage payments? Current, in this case, means not having been more than 30 days late in the last 12 months.
4. Do you believe the amount you owe on your first mortgage is the same or less than the current value of your home?

To determine who owns your loan, call your servicing company and ask. If you have difficulty reaching them, you can also contact Fannie Mae at 800-7FANNIE or Freddie Mac at 800-FREDDIE between the hours of 8am and 8pm EST. You can also click the following links and request the information online.

www.fanniemae.com/homeaffordable
www.freddiemac.com/avoidforeclosure/

Other issues may exist for you in getting this loan. If you currently have a second mortgage or Home Equity Line of Credit (HELOC), the lender will need to re-subordinate their loan to the new first mortgage. Not all second lien holders have been willing to do this.

One other question will involve Private Mortgage Insurance (PMI). Will PMI be required on these new loans as it is required on all other agency loans when the loan-to-value exceeds 80% of the appraised value?

While a new appraisal will not be required, the parameters for determining the value used in the transaction are being delivered to loan servicing companies and additional information can be supplied by your servicer.

What if I Still Can’t Refinance?
The final part of the HASP legislation involves assisting homeowners that will not be able to refinance but are still experiencing financial difficulty. For these borrowers, a loan modification may be warranted and it is expected that 3 to 4 million people may be able to get assistance.

Making Home Affordable modifications are intended for people that can no longer afford their monthly loan payments but still desire to remain in their home. In order to qualify, the affordability of your payment must have been impacted by a hardship.

A hardship that may qualify for modification could include, but not be limited to, a change in your interest rate, decreased income, or increased expenses related to issues like medical expenses, increased property taxes and/or hazard insurance.

To qualify for a modification under the terms of the plan, you must be able to answer yes to the following questions:

1. Is your home your primary residence?
2. Is the amount you owe on your first mortgage equal or less than $729,750?
3. Are you having trouble paying your mortgage? Reference above for examples.
4. Did you obtain your mortgage before January 1, 2009?

One item to note is that the program is not available for jumbo loans. In many areas of the country, a jumbo loan is any loan amount between $417,000 and $729,750. Areas of the country where the loan amounts exceed $417,000 and are still considered eligible include high cost areas like parts of California, Florida, Washington DC, and the Northeast. Your servicing company can provide greater eligibility details.

Loan modifications included in the program are designed to assist the homeowner reach a new mortgage payment, inclusive of principal, interest, property taxes, insurance and homeowner’s association fees of not more than 31% of gross monthly income. In order to arrive at this number, participation from both the lender and the government may be involved.

What’s Needed to Qualify for Either Program?
In order to qualify for either option, the homeowner needs to know that full qualification will be needed to ensure the borrower can meet the new payment. This will include supplying full income documentation and disclosure of assets. They will also be required to provide documentation proving the property is a primary residence. This can include verification through a credit report or other documentation such as utility bills.

To qualify for the modification program, evidence of additional housing expense items will be required including any other loans like cars, credit cards and student loans and their minimum payments, regular household expenses and a hardship letter detailing your situation and inability to make your payment.

Finally, all lender and loan servicers’ participation is voluntary in either situation. Just because the programs are now available does not guarantee you will be able to find relief. Not all people in distressed situations will be helped. In these cases, there is a website detailing additional options that can be found at FinancialStability.gov.

Final Recommendation
The details of the legislation released this week may not assist everyone in need of relief. However, if the bill does what is expected, it could assist in lowering the mortgage payments or save people from foreclosure at the rate of 7 to 9 million homeowners. While the final impact on the economy may not be known for years, the first step is to find out if it will work for you.

Language in the legislation suggests you reach out to your lender directly or contact the professional listed below.  She can assist you in navigating the waters and provide you with information that is pertinent to your individual situation.

Rebecca W. Bass
Branch Manager
Element Funding Mortgage Bank
Phone: (843)379-0999
Fax: (888)696-6401
rwbass@embarqmail.com
www.rwbass.com

Million dollar Family Tip:  Know where your finances are in relation to your goals.  Find out how TrueWealthCFO

“Coming together is a beginning. Keeping together is progress. Working together is success.”
- Henry Ford

What is your vision for the new year? Is academic achievement at the top of the list or will this be the year your child breaks out of his social shell? Will your family grow closer or more distant as they face the challenges in the coming months of the school year? Who will guide your child’s development?

A vision defines a direction toward a goal. Realizing a vision requires support from a motivated group of individuals; a team of people, who ban together through adversity, inspire motivation and acknowledge achievement.

Who’s on your team?

According to the United States Census Bureau, today’s generation of school-age children spend the majority of their waking hours in the care of someone other than their parents. Given the influence that teachers, coaches, mentors and extended family members have on a child’s development the necessity for building a relationship with this group of people has never been greater. Creating a team of focused and motivated individuals who will continually support the ongoing growth of your child requires a new set of parenting skills.

5 Steps to Building Your Support Team

Create a roster. Who will impact your child’s life this year? Begin by creating a list of the adults who will connect with your child during the first month of school. Teachers, school administrators, coaches, mentors and extended family members are common additions to most team rosters.

Position the players. With a completed roster in place, identify when and where your child will see these critical people. Teachers and school personnel typically fall within a specified seven-hour time block on a regular Monday through Friday schedule. However the afterschool hours are equally important. Identifying who will supervise your child beyond the conclusion of the school day creates an accurate picture of your child’s life and the role that each adult will play this year.

Connect. The beginning of a school year marks the start to many new and inspiring relationships. During the first few weeks of school take two minutes to communicate with each person on your roster. Send a written note, email message or share a quick conversation in person. The message to convey is short yet sincere, “Hi, I just wanted you to know how excited I am to have you in my child’s life this year.” This quick introduction sends a powerful message to everyone on your team about the importance of their role in your child’s life.

Check-in. Don’t wait until a problem arises to initiate a conversation. Every 2-3 weeks check-in with each of the people on your roster. Start the conversation with, “How are you?” and then let the discussion flow from there. Beginning with an open-ended question allows the conversation about your child to evolve naturally. Leading questions like, “How was her behavior today?” or “Were there any problems?” bring immediate focus to a potentially negative set of comments that result in creating greater distance between parents and key adults in their child’s life. The opportunity to share positive comments or questions is lost amidst the negativity.

Celebrate. Reaching milestones and achieving goals is cause for celebration. Placing a quick call to your child’s teacher after the conclusion of a long-term project or class play shows acknowledgement and appreciation – two characteristics of supportive teams. The more often team members celebrate together the stronger their relationship grows. As a teacher and a mom, Dee Moran knows the importance of celebrating achievement. “Our six-year-old likes being recognized for his achievements. The simplest words of praise and acknowledgment leave him proud for days. Julie, our thirteen-year-old typically opts for a more subtle approach to celebration, preferring to spend a night out with friends at the movies after bringing a successful semester to a close. Celebrating achievements both small and large keeps everyone moving forward.” – Dee Moran

Bringing the valued members of your team together both, at home and in the community, allows your vision to become a reality. Celebrating the fulfillment of a vision inspires motivation for continued success. Enjoy the year ahead with your family.

Joe Bruzzese, MA, is a leading expert for the middle school years, author of A Parents’ Guide to the Middle School Years and co-founder of ThinkingForwardTV.com, the online resource for families during the middle school years. Tune in to www.ThinkingForwardTV.com for a daily boost of parenting wisdom, delivered in an easy-to-digest 3-minute video, with just the right amount of kick to move a family forward.

Million dollar Family Tip:  Know where your finances are in relation to your goals.  Find out how TrueWealthCFO

It’s a strange time to be a homeowner. You’ve managed to hold on to your house during these tough economic times, but figuring out what to do next may be the trickiest part of all. If selling isn’t part of the plan, could this be the right time to make some improvements to your home? We think it is, but with one condition. The improvements will have to make sense.

The Nuts and Bolts of It All
Making improvements to your home is never a quick and easy decision. Given today’s economic climate, the decision becomes even more difficult. With so many aspects to consider, we decided to simplify things and concentrate on two – cost and the potential for adding value to your home.

Affordability is always relative to the individual. What one person can comfortably pay for may break the budget of another. For this reason we have decided to concentrate on improvements we consider to be fairly low in cost.

In addition, we thought it was necessary for the improvement to have a positive effect on your home’s overall cachet. By concentrating on certain types of upgrades you’ll not only create a more comfortable living space for yourself, but you’ll make it more sellable if and when the time arises.

The Front Door
Repainting or replacing the front door will dramatically improve the exterior appearance of your home. It will enhance an area that everyone sees, no matter if they’re driving by or walking up. Upgrading the hardware on the door is also a nice touch.

Plant the Seed
Foliage on the outside of the home carries many benefits. Among them are the addition of color and vitality to the landscaping. If the weather in your area isn’t conducive for gardening at the present time, concentrate instead on acquiring potted plants for your porch or walkway. As the weather warms up, think about potential projects for the front and back yards.

Paint the Walls
The weather may not be right for painting the exterior of your home, but it’s a fine time for painting the inside. Just remember that you don’t have to paint every single room. Prioritize and proceed according to your budget and schedule. Think about sticking to lighter, more standardized colors. These types of colors will not only brighten the space, they’ll make it look bigger.

Lighting is Everything
The ambience inside the home, especially at night, is highly dependant on lighting. Great looking lighting fixtures are a plus, but they can be expensive and don’t always translate into putting out optimal light. The installation of dimmer switches is far less expensive and it allows for tremendous flexibility when it comes to lighting for mood.

Fix the Fixtures
While upgrading bathrooms is a sound investment in terms of increasing your home’s value, a remodel may not be part of this year’s budget. That said, don’t ignore your bathrooms altogether. Fixtures such as faucets, towel racks, lights and showerheads have the ability to spruce up both the look and functionality. Throw in newly painted walls and some decorative accents and your bathroom will feel brand new.

Fawn Over Your Flooring
New flooring is major “bang for your buck” when it comes to increasing a home’s value. But, once again, is there money in the budget to do it? If the answer is no, opt instead for having your carpets and hardwood floors professionally cleaned by a quality and reputable company, preferably one that’s been referred by either a mortgage or real estate professional.

No Cottage Cheese
Since acoustic ceilings are no longer en vogue, removing them is a great way to improve the look of your home. You can do this project yourself, but beware. It is not only a messy endeavor, but some acoustic ceilings contain asbestos. We suggest hiring a qualified and recommended painter to do the job for you. If budget is an issue, you can always do one or two rooms at a time, as opposed to the whole house.

Windows to the World
Windows are your portals to the outside world, so it makes a lot of sense to give them a facelift. New windows not only improve your view from inside, they may just save you some money on your energy bill. While you’re at it, you may also want to consider adding interior trim to your new windows, or replacing any outdated window treatments. You may be a bit surprised at how affordable these types of improvements have become. Once again, however, you can do this project one room at a time.

Rearrange for Change
One of the least expensive upgrades is a simple rearranging of your furniture and decor. It costs nothing and it might actually result in either selling or donating items you no longer like or want. Proceeds can be put toward the purchase of new items. If you need help in rearranging your home’s interior, we suggest the book, Decorating for Good: A Step-by-Step Guide to Rearranging What You Already Own, by Carole Talbott.

Don’t Forget the Garage
The garage is a part of the home that is often neglected. If this sounds familiar, you may want to think about organizing the interior. Any items that are no longer in use can be sold in a true “garage sale”. These proceeds can go toward either repainting or replacing the garage door. Don’t laugh. It’s an inexpensive yet effective way to spruce up your garage’s exterior.

We hope you found these suggestions useful. Even more useful is the idea that improving and updating your home does not have to be an expensive proposition. We wish you luck and encourage you to create the brightest and most comfortable space possible.

Million dollar Family Tip:  Know where your finances are in relation to your goals.  Find out how TrueWealthCFO

Step 1:  Create Opportunities for Your Children

You may need to release your grip on having things done your way, and promote the growth of someone (your child) taking on new responsibilities. In the beginning, you may need to invest more time explaining the task than it would have taken you to do the job yourself. However, this exercise is more of an investment in the person, the process and your family. This eventually frees up more of your time to graduate to a higher level of activity, or perhaps result in a few moments of free time. You may need to ask yourself, “Am I the best person for this task?”  Doing so may create opportunities for your children to take on more responsible roles.

Step 2: Maintain Ongoing Communication

My good friend had a plaque made for her home that, which says, “Hope is not a strategy.”  She explained to me that she couldn’t “hope” friends returned her calls, or “hope” that her children followed up on the tasks she gave them last week, or “hope” that her family found time to spend together. She challenges her children with growing responsibility as they earn it. As a parent, she maintains ongoing communication on each idea or task as if it were her own.

The key to doing this successfully is having a full inventory of everything you expect your children to take responsibility for and then to hold ongoing conversations so there is still time to act if an unexpected situation arises. It’s important, however, to avoid advice-filled lectures, which often bring conversations to an abrupt end.

Try the following lead-in question with your child, “How much time will you need to finish up with your projects this week?” Asking your children to talk about what they need in order to solve a problem shifts responsibility away from you dictating what needs to happen, and keeps the conversation moving in a positive direction. At the end of the conversation, you will have a clear idea of your child’s goals and the plan for achieving them. In addition, your child leaves the conversation feeling acknowledged for the effort and responsibility he or she has taken.

Step 3: Hold Family Meetings

The final key to successful leadership as a parent is the family meeting. Scheduling a consistent time to meet with your family allows for an ongoing review of your family’s progress. Reviewing progress provides a valuable opportunity for you to talk with your children about how things could be done differently in the future—a learning strategy that results in real change. Each time your family meets, your children build on their past success and consider opportunities for change in the future.

Here are some ideas to make your family meetings successful.

• Begin the meeting with acknowledgements. Everyone has an opportunity to acknowledge the person seated to the right for something positive. You don’t need to return the acknowledgement but would continue the round by acknowledging the person seated to the right of you. Beginning the meeting with acknowledgements puts everyone in a positive frame of mind, lets everyone know that their efforts are valued, and sets the stage for a productive and collaborative discussion.
• Encourage your children to come to the meeting with ideas and questions of their own so that the meeting is truly a “Family” meeting rather than a “Mom and Dad Meet with the Children” meeting, a model that many families seem to slip into.
• Post a piece of paper or a white board where all family members have the opportunity to add questions or ideas for the upcoming meeting. A few rules need to surround the agenda though in order to keep it from becoming a laundry list of items that you skim through. Perhaps you can choose to allow everyone to add one question to the agenda. This ensures people bring the item that is their biggest concern.
• To handle any frustration that arises during the meeting, have a rule that any member of the family can call for a timeout and in doing so can freely state his or her frustration or confusion. However the person who called the timeout must add the following question after sharing his or her feelings: “How can we change what we are doing so that there will be less frustration or confusion?” This helps lead to even better communication in the future.

Make It a Great School Year

Great parents understand both the big picture with respect to their child’s development, and how to shift responsibilities that empower their children to step up to new roles. Great parents know that when everyone has a vested interest in the family, and people are acknowledged for their contributions, real change happens. Goals are exceeded, and family members are excited and engaged in moving forward.

Implement these three ideas and you will be on your way to making this year a successful school year for the whole family!

Jason W. Womack, MEd, MA, and Joe Bruzzese, MA, are California-based authors and expert speakers. Joe’s recently-published book, Parents’ Guide to the Middle School Years, gives you practical and specific tips to succeeding in the life of “5-9″, while Jason’s articles and speeches give executives and office professionals the secrets to thriving during the “9-5″ hours of life. Bring them in to speak for your team or referral partners and give the gift of work-life balance. Visit www.ThinkingForwardTV.com and www.WomackCompany.com.

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For a few buyers, depending on your circumstances and financial status, you may even qualify for a portion of a special first-time home buyer tax credit of up to $8,000 which expires on November 30, 2009. Either way, give us a call. We’ll run the numbers and see which scenario makes the most sense for you and your family.

Million dollar Family Tip:  Know where your finances are in relation to your goals.  Find out how TrueWealthCFO

For potential employees, be aware that Human Resource departments do visit your social media sites when considering you for a job – and not just LinkedIn® – all of them. They’re browsing through your photos, your blogs, your updates, your Tweets, so make sure that anything available to them is something that you would be willing to share or discuss in an interview.

For current employees, more and more stories are being reported about workers being fired by their companies for their use of social media sites like LinkedIn®, Facebook, Twitter, and MySpace. If you’re going to post on these sites, be careful what you post, especially during work hours. Experts suggest avoiding announcements about interviews, raises, or new jobs. Avoid badmouthing your current and previous employers. And, last but not least, don’t mention your job searches while you’re still employed.

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