IDEAL serves as an acronym to identify the advantages of rental properties:

• Income from the monthly rent contributes to paying the expenses and a return on the investment
• Depreciation is a non-cash deduction that contributes a tax shelter
• Equity grows monthly as the mortgage amortizes due to some of each payment being applied to the principal
• Appreciation is achieved as the value of the property goes up
• Leverage can increase the return on investment by using borrowed funds to control a larger asset

The combination of these characteristics working together makes rental real estate a very good investment for today’s economy and years to come. Increased rents, high rental demand, good values and low non-owner-occupied mortgage rates contribute to positive cash flows and very favorable rates of return.

Contact me for more information about actual opportunities in our local market.

Making additional principal contributions on your mortgage will save interest, retire debt and build equity. An extra $100 a month in the example shown will save thousands in interest and short the term of the mortgage as well.

Reducing your cost of housing is another way to improve the investment in your home. Becoming debt-free is a worthy goal that is achieved with discipline and good decisions. Suggestions like this are part of my commitment to help people be better homeowners when they buy, sell and all the years in between.

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Factors that increase the risk that the loan will be repaid will proportionately increase the interest rate charged to the borrower. If the risk becomes too high, the loan will not be approved.

• Loan amounts – conventional loans for more than the conforming limits set by Fannie Mae are considered jumbo loans and generally have a higher interest rate.
• FICO score – the lowest interest rate is reserved for the highest credit scores; the lower the score, the higher the rate borrower will pay.
• Occupancy – borrowers occupying a home as their principal residence are considered a better loan risk than second homes and investment properties.
• Loan purpose – purchase transactions generally have the lowest interest rate while refinancing a home is generally higher.
• Debt-to-Income ratio – a borrower’s monthly liabilities divided by their gross monthly income develops a ratio that helps lenders to assess the borrower’s ability to repay the mortgage.
• Loan-to-Value ratio – the lower the percentage of the loan to the appraised value of the property will generally lower the interest rate.

Any combination of these factors could limit a borrower’s ability to secure a mortgage at the rate initially quoted. Being pre-approved by a trusted mortgage professional is the best way to know what rate you can expect to pay. Please call for a recommendation.

From infancy until around five years old a child’s brain is rapidly growing and developing. At this stage of development, children are able to learn and thrive on the answers to their curiosity. As a time when children have the most potential to learn, parents need to take appropriate measures to find the right child care program to provide the best environment to encourage growth and education.

Before it is possible to make the important decision of a child care program, parents need to find out what options are available in their local area. Depending on the area, parents might end up bogged down by multiple selections or they might have a limited number of potential programs. Asking friends, family and co-workers for suggestions can help narrow the choices.

After learning about potential options and making a list of a few suggestions, parents should arrange to visit the location or ask about a tour. When visiting, parents should pay attention to how they feel about the area. If anything makes a either parent feel uncomfortable, whether it is the greeting or the way the area smells, parents should eliminate the program. The people in the program should be partners for parents and should never make a parent feel uncomfortable or doubtful of their abilities.

During the tour parents should ask questions. The questions give a further impression into how the program works and what goals are set for the children. Parent should always ask about accreditation of the program, the qualifications of the teachers and staff, what measures are taken during common emergencies, whether someone is qualified to perform CPR on children and if the staff is qualified to issue first aid in an emergency.

Parents should also ask about the educational goals of the program. Determining what is taught in the program, whether it is based on research and how it can help children with the transition into kindergarten and elementary school can sometimes make a difference in how the parents feel about the program.

When looking at the educational information, parents should also note whether the children in the classroom seem happy, excited and organized throughout activities. Happy classrooms suggest that the children are learning well. The organization of the classroom and the methods used to instruct in the classroom are also important factors in determining if the classroom promotes a strong learning environment for children.

The educational center’s policies are as important as the educational policies. Parents should find out how the program plans to communicate with them in case emergencies occur. The policies on child safety are also important factors in determining whether the program will feel comfortable. Finding out the policies on sickness is another important factor in selecting a program. Parents should look at how the child care center will handle sudden sicknesses that occur in the classroom.

Beyond policies relating to children and safety, parents should also ask about payment options and the school’s licensing. These help determine the qualification of the school and whether it is an affordable option based on the family budget for child care.

Early childhood education and care is an important part of healthy development. Parents should always look for a program that meets their standards for education, safety, organization, communication and accreditation before selecting the program. Since the program is the foundation of a child’s entire educational career, parents should always keep searching until they find a program that feels right, meets their standards and offers more than the minimum expectations.