Refinancing ?

A hefty number of homeowners don't realize how much money they could
save simply by refinancing their mortgage. Bank of America recently
conducted a survey of homeowners' attitudes and found that almost one third
of 300 homeowners who carry mortgage rates of 7 percent or more do not see
the benefits of refinancing -- though rates dipped almost to 5 percent in recent
years, a whopping 43 percent of respondents still hold their original mortgages.
Those who have not refinanced don't believe the closing costs offset any
potential savings; they shun the hefty load of paperwork required and the time
needed to complete the process. But most are also unaware whether their
existing lenders offer streamlined refinancings to customers who already
hold a mortgage with them.

Future Home is Here

What will the house of the future look like? Maybe like The New American
Home being built by Goehring & Morgan Construction in Orlando's Baldwin
Park in time for the National Association of Home Builders' 2005 convention,
to be held in Orlando in January. The 6,000-square-foot, $1.8 million property
will be positioned around a pool, complete with a waterfall originating above
a fireplace. But the home's main selling points will be its high-tech features.
Technology from Lutron Electronics Inc. will link a dozen televisions
scattered throughout the house with telephones, computers, lights, and security
and audio systems, which can easily be controlled via touch-screen keypads
and remotes. The computers and televisions can be used interchangeably.
Moreover, homeowners will be able to program the lights, control the
shades, monitor the front door, activate the sprinkler system, turn on the
whole-house vacuum and chlorinate the swimming pool from
anywhere in the house.

Borrowing from a 401(k)?

Many young homebuyers cash out their 401(k) retirement plans and use
the money as a downpayment without considering the negative long-term
consequences: They can be hit with income taxes, a 10 percent penalty
triggered by early withdrawal and the loss of future tax-deferred earnings.
Experts say that even borrowing from a 401(k) plan isn't a good idea
because the holders of the retirement account lose tax-deferred savings and
risk selling investments before the stock market completely recovers. Instead,
buyers with steady sources of income might want to consider obtaining
piggyback loans, which combine first mortgages for 80 percent of the property
price and second loans to cover the remainder, minus the downpayment.
Those who decide to dip into their retirement accounts even after serious
consideration, should do so only if they can still make their regular
contributions as well as the loan payments.

Know Your Credit Score

Looking for a mortgage? The Mortgage Bankers Association
(MBA) offers the following tips for securing the lowest rate. First,
determine your credit score, which can vary from a low of 300 to
850 points, from the three primary credit bureaus: Equifax,
800-685-1111 or www.equifax.com; TransUnion, 800-888-4213 or
www.transunion.com; and Experian, 888-387-3742 or
www.experian.com. Generally, there's a fee that must be paid unless
you have been turned down for credit because of something in a
report. The MBA also recommends bringing credit card balances
down to less than 30 percent of each card's credit limit, and not to
apply for any new lines of credit. Also keep credit card accounts open
rather than closing some and lumping all debt into a single account.
It's better to have a number of credit cards with each debt less than the
30 percent limit than it is to have only a single card with more than
30 percent of your available credit used.

55-Plus Housing

Florida is still the top destination for older adults seeking an active
retirement, according to a recent analysis by the National Association
of Home Builders. The state had three counties on the top 10 list for
55-plus homebuyers, with Sumter County the most active in the nation.