Suze Orman set off quite a stir a few months ago in a New York Times interview. Although some folks were all atwitter to find out she was gay, what really had people in the personal finance world talking was the fact that the most successful personal finance writer in the country had the bulk of her $25 million portfolio in conservative municipal bonds, with only about $1 million invested in the stock market.
My buddy Chuck Jaffe, a MarketWatch columnist and not exactly a Suze fan, had a particularly good time that little factoid. Chuck has often criticized Suze’s advice as too conservative, and her lack of personal exposure to the stock market confirmed his suspicions that she was out of touch with the needs of everyday people. “In short,” he thundered, “the person being trusted as everyone’s financial adviser has a portfolio that few people could live with.”
I think Suze should be allowed to invest any way she wants to, but the whole kerfluffle points up an irony of personal finance columnizing: the more successful we pundits are, the less our lives resemble those of the majority of our readers.
I was thinking about that when J.D. asked if I’d be willing to write a little exposé for his site on how well I follow my own advice.
“I always wonder just how personal finance gurus lead their lives,” J.D. wrote in an email. “Do they really follow the advice they give? Are they frugal? Do they put their money in index funds? Do they drive older cars? I think this is a question many people have. I also think it’s one reason they read Get Rich Slowly: I quite clearly do follow my own advice, or try to.”
So do I — mostly. At J.D.’s request, I’m pulling back the curtain a bit to show you where I walk my talk, and where I’m full of (well-meaning) hot air.
In case you’re not familiar with my work: I’m the most-read personal finance columnist on the Web. I write a twice-weekly column for MSN Money and a nationally syndicated newspaper column. I’m also the author of three books about finance:
You can find out more about me, if you want, at asklizweston.com. But in answer to J.D.’s questions:
Am I frugal? Congenitally. Most of the time.
I grew up in a middle-class family with a dad who worked as an electric journeyman at the local power plant and a stay-at-home mom who had the Depression-era baby’s classic aversion to debt. We had a garden, we canned, we rinsed and reused baggies. My mom went back to work to help pay my college tuition, while I worked two to four part-time jobs each semester to make ends meet. I graduated without student loan or credit card debt.
I’ve never been much of a shopper, and was taught to pay credit card balances in full every month. (I have carried credit card debt a couple of times in my life — for cash flow reasons, not because we couldn’t pay the whole bill.) Since my early 20s, when I started working as a daily newspaper reporter, I’ve saved 15% to 20% — and sometimes more — of my income. Most of it goes into retirement funds and the majority of those are invested in stock mutual funds.
But a lot of the things I used to do to save money I now do mostly to save the environment: things like turning off lights, using a programmable thermostat, walking or biking instead of driving the car.
And now that I travel a lot, I’ve developed an appreciation for luxuries that would have been unthinkable in my salad days: things like membership to an airline lounge and occasionally paying for a first-class ticket, when I can’t qualify for an upgrade with frequent flyer miles. Flying coach these days reminds me way too much of riding the Greyhound bus during college, and I’m lucky enough to be able to afford an alternative.
Do I put my money in index funds? Yes. Mostly.
I’m a confirmed believer that people who think they’re going to beat the market probably are deluding themselves. I know I would be; I’m way too busy to monitor individual stocks or actively-managed mutual funds.
But a recent review of our portfolio showed that while most of our money is in broad-market index funds, we’re still hanging on to a few actively-managed funds I bought before I’d become firmly convinced of the futilely of trying to predict market-beaters. Like the cobbler’s children with no shoes, my portfolio’s overdue for a clean-up and rebalancing. Thanks, J.D., for goading me into it.
Do I drive an older car? Oh, boy. Do I.
I’m the proud driver of a 1993 SUV with—ta-da—250,000 miles on it. I inherited it from my husband, who upgraded to a later-model Volvo. (The man actually cares what he drives, unlike me.) I’d eventually like to replace it with a more fuel-efficient car, but at this point I drive so few miles that it doesn’t make sense to replace it. Besides that, I’m oddly curious to see how long the old beast will hold out.
I’ve also learned a lot about money over the years by making mistakes. I bought “retirement property” when I was in my 20s (anybody want 14 acres in Alaska, 80 miles from the nearest road?). After years of railing about the insanity of the dot-com boom, I sunk $2,000 into a tech fund in — get this — March 2000, about a week before the bubble started to burst. And the last time we bought a house, I forgot (yes, forgot) about closing costs, and had to sell off some investments at the last minute to cover closing costs. (Fortunately, the stock market cooperated with me for once — you’re not supposed to keep short-term money, like down payments and closing costs, in stock or stock mutual fund investments lest they take a dive right when you need the money.)
But yeah, overall I’ve followed my own advice. I’ve avoided toxic debt including credit card debt; put a pile away for retirement; and invested a ton of money over the years in fun and experiences. I’ve traveled around the world, earned my pilot’s license, threw some great parties, took two sabbaticals to care for my dying mother, and am in the process of raising a wonderful daughter (who may turn out to be our more expensive experience yet, but is soooo worth it). I firmly believe that managing money well helps you live life well, and that’s the message I hope to communicate to readers — regardless of where they happen to be on the road to financial health.
A record 135,431 default notices were sent to California homeowners during the first quarter of the year, up 80 percent from the fourth quarter and 19 percent from the same period a year ago, according to DataQuick.
The company attributed the sharp rise in delinquencies to the ongoing recession along with the delay caused by legislation aimed at stalling foreclosure activity.
“The nastiest batch of California home loans appears to have been made in mid to late 2006 and the foreclosure process is working its way through those,” said John Walsh, DataQuick president, in a release.
“Back then different risk factors were getting piled on top of each other. Adjustable-rate mortgages can be good loans. So can low- down-payment loans, interest-only loans, stated-income loans, etcetera. But if you combine these elements into one loan, it’s toxic.”
Aint that the truth…throw in falling home prices and you’ve got a mortgage crisis on your hands, a big one at that.
The median origination month for last quarter’s defaulted loans was July 2006, just four months later than the median origination month for defaulted loans a year earlier, suggesting it was a period of particularly poor underwriting.
“Of the 3.7 million home loans made in 2004, less than 1 percent have since resulted in a lender filing a default notice. Of the 3.7 million loans originated in 2005, 4.9 percent have triggered a default notice so far. Of the 3 million in 2006, 8.5 percent have so far resulted in default. A particularly toxic period appears to have been August through November 2006 which had more than a 9 percent default rate.”
The mortgage lenders with the highest default rates were ResMAE Mortgage (69.9 percent default rate), Master Financial (64.6 percent), and Ownit Mortgage Solutions (63.6 percent).
Of the top lenders, Indymac fared worst with a default rate of 18.9 percent, followed by World Savings at 8 percent and Countrywide at 7.7 percent.
For first mortgages, California homeowners were a median five months behind on mortgage payments when a notice of default was filed, owing a median $12,926 on a median $346,400 mortgage.
For home equity loans and lines of credit, borrowers owed a median $4,229 on a median $63,600 credit line.
A total of 43,620 homes were actually lost to foreclosure during the first quarter, down 5.5 percent from 46,183 in the prior quarter and 7.6 percent from 47,221 during the first quarter of 2008, thanks in part to various moratoria.
Mortgages were most likely to go into default in Riverside, Merced and San Joaquin counties, and least likely in the counties of Marin, San Francisco, and San Mateo.
Foreclosure resales accounted for 58.1 percent of all California resale activity last quarter, up from 33.1 percent a year ago.
It’s no secret that mental health is an incredibly important part of overall well-being. From anxiety to depression and beyond, our emotions, moods, and behaviors are impacted by how we take care of ourselves. But with all the demands on your time, it can seem daunting and overwhelming to give yourself the attention needed for good mental health—right? Wrong! There are some simple steps you can take each day that will help keep your brain in tip-top shape!
1. Work Out
One user shared, “Working out. Made all the difference.”
Another user replied, “I swear by this. Worst bout of depression in 2021 until I started exercising. Even now when I have a sh*tty day, an hour of exercise makes all the difference. It’s like the sweat washes away all the negative toxins from your body or something.”
One Redditor added, “This. I can’t stress it enough. I would work out 24/7 if I could as it just blocks out all my thoughts and lets me focus on the gains.”
Another commenter said, “That’s it. For me it’s really the feeling of being in control and actively working on feeling better. It also does something to your biochemistry that is extremely beneficial but if you just look at factors that lead to depression, losing control or feeling like other people determine your fate is quite at the top of the list. I feel like I’m turning that around somewhat by working out.”
2. Delete Social Media
One user commented, “Not having any social media accounts.”
Another Redditor asked, “Does Reddit not count?”
The OP answered, “I also deactivated all social media except for Reddit and Twitter (which I will soon deactivate too) I feel these two platforms are different in the sense that they don’t lead the users to constantly compare themselves or expose you to falsehoods of what a ‘perfect’ life others have. This wasn’t personally the reason I deactivated, for me it was a useless time suck that I just wanted to eliminate.”
3. Keep a Gratitude Journal
“Journal of gratitude. Writing in it every night before bed. Keeps me focused on positives,” one user replied.
One user added, “I moved to Japan. I originally visited temples and shrines because I like the environment and collecting the official seal from each. Somewhere along the way it turned into an exercise of gratitude. At each place, I think about how the aspect of the place is there for (Love, knowledge, travel, etc) has been good for me and give thanks. It gets really niche sometimes (Last month I went to a shrine about teeth!) but what that means is that there’s so much I realized I can be thankful for.”
Another user concluded, “I love this idea.”
4. Practice Sobriety
One Redditor added, “Sobriety. More than any other single change. Second biggest? Taking one or two meds that could help with the symptoms I couldn’t resolve myself.”
“Same. Got my 2 month chip today. It’s still new but yeah,” another user replied.
One user commented, “Congrats! keep it up! It just gets better.”
Another user added, “I can’t begin to tell you how much of a difference this has made for me. I am coming up on 9 months sober on July 5th. My psychiaTRIST kept asking me to quit the alcohol but I kept drinking for years. Now that I am feeling the benefits I am just blown away. I’ve already decreased my psych meds once and I feel like I am ready for another decrease.”
5. Get Professional Help
“Seeing someone about it,” one user commented.
Another Redditor replied, “Seeing a private therapist about it and starting ADHD medication the past 6 months has helped so much more than 5 years of various medication and therapy in the public psychiatry did it was truly wild the difference it made being properly medicated with something that actually worked for me (compared to all the antidepressants, antipsychotics and anxiety medications i’ve been on) along with a therapist who genuinely was willing to help me, rather than one who just wanted me out of the psychiatric system as soon as possible.”
One also confirmed, “Counseling really helps.”
6. Take Medications
One user commented, “My medication. Thank you Lithium and Seroquel for controlling my type two bipolar which enables me to participate in my life in a meaningful way. It has also made it possible for me to deal with unresolved issues and now I only need the meds listed above. Been almost twenty years now and not a hint of mania or depression.”
Another user replied, “How is your memory with seroquel? I’ve only been on a very low dose for 3 weeks but my memory is horrible all of a sudden. I’m also sleeping a lot.”
Another user shared, “It can take up to six weeks for it to reach therapeutic levels. The sleepiness will abate. I don’t recall specific memory issues when I started but I was also dealing with the memory issues of the depression I was slowly coming out of. Talk to your pharmacist about the side effects. They will know what you should be concerned about and what will pass.
“Getting the right meds at the right dose requires patience but it is so worth it. Hang in there. Being able to meaningfully participate in your own life once you get this sorted is a blessing I can’t describe. I am grateful every day for my meds.”
7. Make New Friends
One Redditor shared, “Leave all my old friends behind and look for new ones to forget my old struggles. I know it’s bad but I don’t care. I love my two only friends and they are enough for me.”
Another user affirmed, “It’s not bad at all; sometimes you must leave people in the past.”
8. Positive Existentialism
One user stated, “Optimistic nihilism. One day I realized I’m not actually going to be here forever, and the things I do now aren’t going to matter in the long run. Did something embarrassing? So what, they’ll forget about it eventually. Made a mistake at work? Dude the bosses make way more money anyway, why should I care if I already gave it my all? I’ve learned that I can be a good person and still not give a shit, that the only opinion that matters is mine, and if someone wants to stomp all over that I don’t need them in my life. Edit: it’s officially called absurdism/existentialism! I recommend looking it up.”
One user responded, “I call this ‘zooming out’. I do it periodically. I think it’s healthy to recognize that each of us is 1 in 8 billion living people, probably 100 billion ever. That only spans a few thousand years. The world has been around billions of years before us, and will last billions of years after we’re gone. Our tiny planet is one of billions (trillions?) of planets that have existed or will exist. We are so small.”
Another user added, “Yes! So many people are miserable because they want to look good for everyone else, but what’s the point when in a year, a month, even a week from now no one will remember what you said or did. Most people are too absorbed in their own insecurities to focus on yours, and the ones that make it a point to focus on yours aren’t worth it. In the end, you’ll be gone and no one will remember you, even celebrities will be distant memories one day.”
9. Delete Toxic Messages
“Deleting my ex-wife’s emails without reading them,” one user commented.
Another user replied, “Boss move. Well done!”
10. Leave Unhealthy Relationships
One commenter posted, “Being single again. Two weeks after being dumped, I was still feeling less emotional distress than what I did on a regular basis while in that relationship.”
11. Plant a Flower
“Moving into a house with a garden after years in a flat, sitting out in nature is so relaxing, being able to enjoy the fruits of my labour by seeing the flowers and plants grow that I planted is so rewarding, especially when you see bees enjoying the flowers. I have honestly gone from around a 2-5 in mood up to a 9-10, even on the most difficult days, the garden is my sanctuary, I didn’t think it could make such a difference, but it does,” one Redditor added.
Another user added, “That’s happy! Nature makes such a huge difference in well being. Being outside pretty much immediately improves/regulates my mood.”
12. Go Outside Near Water
Another user shared, “Going to the beach.”
One added specifically, “Newport Beach, Crystal Cove Beach. . . California.”
“Little Corona,” another commenter responded.
One user suggested, “Rio Del Mar, Capitola, Santa Cruz CA.”
13. Meditate
“Meditation,” one user posted.
Another Redditor confirmed, “Yes meditation has done wonders. For me guided meditation. There are tons of free ones on YouTube. It can take a few times but it does help big time.”
One commenter asked, “Please suggest a good yt video if you can. If you don’t know of a good video, can you please take the pain of writing it? I will be so grateful…”
Another user said, “Look into Dr Joe Dispenza.”
14. Get a Dog
One user shared, “Getting a dog.”
Another user replied, “Ooff, so much agreement here. A dog gives you routine, which is key when your life is disrupted by big events.”
“Honestly, I’ve noticed my anxiety always gets a lot worse when I have no routine. Even little things like going to the gym/walking everyday, getting up at a certain time, etc helps me,” one commenter added.
Another Redditor responded, “I was going to write the same. My furry little friend has made a huge difference.”
15. Don’t Watch the News
One user suggested, “I stopped watching the news about 7 years ago. I cannot describe how blissful ignorance is.”
Another replied, “Fr tho.”
16. CBD
One user posted, “Unironically, smoking a bunch of weed. That’s not saying it’s a healthy way to go about it, but when I’m baked, I want to be as comfortable as possible. To get that, I actually had to clean my living space and do basic hygiene. Over time, taking care of those things was a bit easier because I wasn’t letting mountains of trash pile up. Cleaner space and slightly healthier living gave me a morale boost I wasn’t expecting and it pushed me to be more diligent in cleaning myself and my area. I’m still not in a great place mentally, but I’m leagues ahead of where I was a year ago.”
“Exact opposite for me. Weed takes away any energy I have to actually make my life better. It systematically ends up destroying any good intentions I have,” replied by one user.
17. Get a Better Job
“A better paying job with more interesting work, better coworkers, less hours and a boss who believes in making sure people have what they need to function instead of putting pressure on them. Give me far more time to be at home to take care of things there (and to chill, mind you) plus a bigger spending range and so much more happiness in the job itself,” one Redditor shared.
18. Quit a Toxic Job
One online user shared, “Quitting my job!! I’ve been at a new job for about three months now and have really been doing so much better. I had previously worked in an animal control facility for about 3.5 years. I had been promoted several times, was the head of my department and several unrelated projects and was completely overwhelmed. Asking for help because I didn’t have time to do everything I needed to was met with unhelpful answers about figuring out how to balance everything. Not having any ideas of how to balance it, I was literally told, ‘It’ll be easier when you figure out how to balance everything.’ I took a $4 pay cut to go to a new job. I’m the newest and dumbest person in an art department, have no customer interaction, and don’t see animal death daily. This is the best pay cut I’ve ever taken. I’m only now starting to notice how much the compassion fatigue at animal control was affecting me.”
19. Set Boundaries With Family
“Pulling away from family. I love them, truly, but no one needs constant reminders of mistakes in their teens when you’re almost 30. Not to mention I have the kind of family if I return such a favour that I am told I am a child for bringing up the past. I used to call my brother and sister almost daily and I stopped last month. Best decision I have made in a long time,” one user commented.
Do you have more healthy ways of keeping up your mental health aside from the list above? Share it in the comment section!
Source: Reddit.
These are 10 Things That Completely Destroyed The Love in a Relationship
There’s no question that relationships can be confusing, but here are some of the top things to avoid if you want to keep your relationship healthy!
10 Actors and Actresses People Refuse to Watch Ever Again
We all have a favorite actor or actress, but most of us have a least-favorite as well. Check out this list of actors and actresses people never want to see performing again!
Top 10 Worst Human Inventions of All Time
Some inventions are world-changing, and some of them, well, they change the world in the wrong ways. Here are some of the worst inventions Redditors could think of.
10 Famous Celebrities Who Look Like They Smell Terrible
We’ve all had moments of hygiene faux pas—but these celebrities just look like they don’t take care of themselves at all.
10 Terrible Fads People Are Glad Died Out
Every fad has its time in the limelight, but some of them come and go faster than others; and some just need to die out right away. Check out this list of fads of which people were happy to see the last.
The Laborers’ International Union of North America (LIUNA) has suggested that a new assembly bill be introduced in California to bar homebuilders from involvement in the mortgage business.
In their new report, they argue that corporate homebuilders in California systematically pressured homebuyers to finance their new home purchases via directly-owned or affiliated mortgage lenders that pushed exotic, high-risk loan programs.
“Corporate homebuilders profited from the loans and from the artificial inflation of the housing market bubble. Their practices contributed to the current housing and economic crisis and families and communities were devastated when the bubble burst,” the release said.
One example cited in the report found that the mortgage subsidiary of homebuilder DR Horton increased its use of subprime lending in Riverside and San Bernardino Counties from six percent in 2004 to 36 percent by 2006.
Once subprime lending phased out, builders turned to FHA loans for financing; 5.5 percent of the government-backed loans originated by Lennar’s mortgage subsidiary Universal American in 2007-2008 have already defaulted.
That compares to a 2.8 percent default rate seen within the first two years on the FHA loans the company originated in 2005 and 2006.
LIUNA is pushing Assembly Bill 1534, which would prohibit homebuilders from writing mortgages on the homes they build, protect buyers from “pressure tactics,” and provide buyers with more options and the ability to make more responsible choices.
So just to review, the homebuilders created the tremendous oversupply of housing and provided toxic funding to get the overpriced properties off their hands, and pushed for low mortgage rates to shed inventory without reducing prices.
The former CEO of embattled mortgage lender Countrywide, Angelo Mozilo, has been charged with securities fraud by the SEC.
The ex-Countrywide boss, along with former chief operating officer and president David Sambol and former chief financial officer Eric Sieracki, was charged “for deliberately misleading investors about the significant credit risks being taken in efforts to build and maintain the company’s market share.”
“This is the tale of two companies,” said Robert Khuzami, Director of the SEC’s Division of Enforcement. “Countrywide portrayed itself as underwriting mainly prime quality mortgages using high underwriting standards. But concealed from shareholders was the true Countrywide, an increasingly reckless lender assuming greater and greater risk.”
“Angelo Mozilo privately described one Countrywide product as ‘toxic,’ and said another’s performance was so uncertain that Countrywide was ‘flying blind.’”
The ex-boss was also accused of insider trading, related to his dumping of Countrywide stock just before the mortgage crisis went into full swing.
After the collapse of his company in late 2007, Mozilo agreed to forego his $37.5 million in severance pay in light of public criticism, but that seemed more for show than anything else.
Between 2002 and 2007, he raked in hundreds of millions of dollars in salary and stock options, curiously accelerating share sales as the housing market worsened.
Despite the outright failure of his company and its infamous role in the ongoing crisis, Mozilo has admitted to no wrongdoing.
Instead, he has defended risky loan programs like adjustable-rate mortgages and option arms, claiming they opened the doors to homeownership.
“The SEC’s complaint alleges that Mozilo believed that the risk was so high that he repeatedly urged that Countrywide sell its entire portfolio of Pay-Option loans.”
Early last month, Florida Attorney General Bill McCollum said he had obtained a federal court order remanding his lawsuit against Mozilo back to Broward County Circuit Court.
That suit alleges Countrywide put borrowers in misleading or unaffordable loans (of which Mozilo should have been aware), among other things.
It’ll be interesting to see if Mozilo (and friends) can wriggle out of this one…
Party like it’s 2006! Mortgage brokers are now able to peddle interest-only mortgages to qualified borrowers nationwide.
Oh wait, that last part about being qualified isn’t really reminiscent of 2006, but I’ll get to that in a moment.
This week, United Wholesale Mortgage announced a new offering, interest-only mortgages, those which happen to fall outside the ever-important Qualified Mortgage (QM) rule.
That means they’re pretty hard to come by these days, especially via a smaller bank that isn’t dealing in jumbo loans to wealthy clientele.
UWM also happens to be a wholesale mortgage lender, meaning they work with mortgage brokers who connect with homeowners.
Here We Go Again?
Both mortgage brokers and exotic loans types like interest-only mortgages were blamed for the most recent housing crisis, but this time things seem to be a little different, at least for now.
The lender, which claims to be “one of the nation’s largest and fastest-growing wholesale lenders,” has some pretty tough requirements attached to the loans.
For one, you need a minimum FICO score of 720, so there certainly won’t be any subprime interest-only stuff floating around.
And perhaps more significantly, you need to bring at least 20% for a down payment, as the max LTV is 80% on this new program.
That’s certainly important, given the fact that an interest-only loan only pays off interest, no principal. So if home prices are flat, or worse, fall, the borrower could wind up with little to no equity to serve as a buffer for the lender in the case of default.
The program also calls for a max DTI ratio of 42%, strangely one percentage point lower than the max DTI on QM loans.
So one might say it’s quite a bit different this time around, even if it’s still an interest-only mortgage.
Not Your Uncle’s Interest-Only Mortgage
During the lead up to the crisis, it was common to see IO loans with no money down that only required subprime credit scores. Obviously lending like that when home prices were peaking was a recipe for disaster.
Today, UWM sees the offering as a way for “savvy” homeowners “to save additional discretionary income.”
In other words, they can afford a fully amortizing mortgage, but they want to pay interest-only so they can put their money elsewhere.
There’s no problem with that, so long as the borrower is actually savvy and knows what they’re getting into. And also has a way to get out of it if things don’t pan out.
Brokers should get a competitive boost as well by gaining access to a wider product range to offer borrowers.
For the record, their IO product is just like the stuff that came before it – a 10-year IO period followed by a fully amortizing 20-year payback period.
That means monthly mortgage payments will jump once the initial 10 years are up, though if these borrowers are truly qualified, they should be able to handle it. Or simply refinance or sell before that time is up.
In any case, it’s definitely interesting to see lenders dipping their toes back into the interest-only pool, especially seeing that the Consumer Finance Protection Bureau refers to IO loans as “toxic.”
It’s been a tough year for the mortgage industry, with origination volume down substantially from the boom years of 2020 and 2021.
Even 2022 was a pretty good year relative to what we’ve seen so far in 2023, with the harsh reality of near-7% mortgage rates firmly setting in.
Aside from the more than doubling of mortgage rates virtually eliminating refinance demand, it’s also making it more expensive to purchase a home.
After all, a $500,000 loan amount at 7% vs. 3% is a difference of roughly $1,200 per month.
Because of this eroding affordability, mortgage lenders are getting increasingly creative with financing, the latest being Carrington Mortgage Services.
Carrington Mortgage Services Add 40-Year Home Loans to Its Lineup
This week, Carrington Mortgage Services’ launched a new home loan product aimed at affordability: the 40-year mortgage.
The Anaheim-based lender, which operates in the retail, wholesale, and correspondent channels, believes it will provide several advantages.
The main one being a lower monthly payment due to the longer amortization period.
The other being the ability to qualify borrowers at the lower payment, thereby reducing their DTI ratio and potentially allowing them to afford more home.
Because loan terms beyond 30 years were banned under the far-reaching Qualified Mortgage (QM) rule, this type of loan will be considered non-QM.
But it’s available across the company’s four non-QM suites, including Flexible Advantage, Flexible Advantage Plus, Prime Advantage, and Investor Advantage.
Additionally, it is an option for both home purchase transactions and refinances, including Full Doc, 12/24-Month Bank Statements, and Texas Home Equity loans.
However, it is limited to fixed-rate loans at the moment, with an option for adjustable-rate products potentially coming in the future.
In that case, the loan would amortize as a 40-year loan, despite being adjustable, thereby keeping monthly payments lower.
It’s not an option for interest only loans, or certain alternative documentation types such as 1-year Alt Doc, 1099, and P&L programs.
Temporary Buydowns Also Unveiled
In addition to their new 40-year loan term option, Carrington has introduced temporary buydowns for home buyers using government or conforming, conventional loans.
This means borrowers can take advantage of a 2-1 buydown on a loan backed by Fannie Mae or Freddie Mac, or the FHA/VA.
For example, if the note rate were 6.5%, the borrower could enjoy a rate of 4.5% in year one and 5.5% in year two.
The hope is that it bridges the gap to lower mortgage rates in the future, though no one knows for certain if and when mortgage rates will actually fall.
Unlike the 40-year loan option, the borrower is still qualified via the actual note rate to ensure they can afford the eventual higher monthly payments.
While reserved for QM loans at the moment, the company plans to offer temporary buydowns for its non-QM loan products as well.
Look Out for More Creative Solutions If Mortgage Rates Stay Elevated
As noted, these new products are designed to tackle affordability woes. Ultimately, it has gotten a lot more expensive to become a homeowner these days.
The combination of much higher mortgage rates coupled with home prices hitting fresh all-time highs has been devastating for prospective buyers.
And with no relief in sight, we’ll probably see more of these types of products make their way to market.
The good news, despite some additional risk, is these programs pale in comparison to what was available more than a decade ago prior to the mortgage crisis of the early 2000s.
Back then, there was a bevy of toxic mortgage options, whether it has the no doc loan, the option ARM, 100% financing, or a combination of all the above.
The abundance of those products, along with loose underwriting and a deluge of inventory, led to one of the worst housing crises of all time.
Today, most mortgages are locked-in at 2-3% rates and backed by 30-year fixed mortgages. Housing supply is also near all-time lows, painting a very different market.
The one commonality at the moment is a lack of affordability. But due to a severe shortage of available homes for sale, prices continue to defy expectations.
Most lamps aren’t easy to move from one home to the next. Not only because of their size, but all lamps have a variety of fragile parts that make up the whole. We’re talking about the lamp shade and the harp, which holds the shade in place, for starters. But, even the light bulb is fragile. When you get right down to it, there are delicate parts from top to bottom, and this includes the prongs on the cord. So, it’s important to know all about packing lamps for moving.
To keep everything safe during a move and preserve each lamp, you need to collect the right packing materials and have a solid understanding of all the lamp parts. With strategic planning and an extra careful touch, lamps won’t cause a hiccup in your moving process.
1. Know the anatomy of a lamp
It may sound silly, but do you know all the parts of a lamp? It comes in handy when packing lamps for moving since you typically have to disassemble lamps into multiple parts. Knowing how everything works together and fits together then makes it easy to gently unscrew each piece, and put it back together when you’re in your new home.
The parts of a table lamp
Most table lamps consist of 18 individual parts. Some are more obvious, like lamp bases or lamp shades, but others, like shade risers, are not. It’s most of these unknown parts that are the most fragile and make moving lamps challenging.
The parts of a floor lamp
Although it may feel like the entire lamp is one piece, floor lamps also have various parts you need to contend with when moving. There are nine parts to a basic floor lamp, and while a lot easier to disassemble, they’re much harder to match to a moving box that’s the right size.
2. Collect your supplies
Essential supplies for packing lamps include all the moving basics. You’ll need boxes, packing paper, bubble wrap and packing tape. It’s also beneficial to have packing peanuts, foam sheets and air-filled plastic wrap.
Since you should never put more than one lamp into a single box, finding the appropriate lamp boxes is your biggest challenge. While smaller lamps can probably fit into a standard box, you’ll need some odd-sized options if you’re trying to pack a really large lamp base or a tall floor lamp.
When it comes to wrapping elements of your lamps, make sure you have plain packing paper. Using newspaper, especially when packing lampshades, can cause issues since the ink may bleed onto the lamp parts.
3. Pack each lamp the right way
In order to properly estimate the packing material you’ll need for your lamps, it’s best to assemble them all in a secure location in your home before you start packing them up. Because of their fragile nature, you don’t want to leave them lying around where they can get bumped or knocked over.
Each lamp belongs in its own box, so when you’re ready, tackle one lamp at a time.
Packing floor lamps
If you can’t find a moving box big enough for the base of a floor lamp, don’t stress. It’s totally safe to move these on their own, like a piece of furniture. If you can get the base in a box, though, make sure to wrap it up to protect it from getting scratched.
Separate all the small parts you can remove from the lamp first, and take out the light bulbs. Any small parts should go in the same box as the lamp itself. You can put them in a plastic baggie unless they’re fragile. Then, you may want to wrap things individually.
Fill any empty space in the box with packing paper.
Packing table lamps
Most table lamps will fit comfortably into their own box. You’ll need to remove a few extra parts here, though, including the lamp shade and the harp. Pack lamp shades separately, but keep all other small parts with the body of the lamp.
The safest way to pack a table lamp for moving is using the burrito style with bubble wrap. Take a piece of bubble wrap or packing paper and roll the lamp up, folding in each end. Secure with packing tape and set upright in the box.
If you’re worried about packing tape potentially lifting any of the paint off your lamp, painter’s tape is a great alternative that works just as well.
Packing specialty lamps
There are a few types of lamps that don’t fit the mold. They won’t have a lamp base or lamp shade, but rather will be more like a single unit. To pack lamps like these for moving, follow these tips.
Lava lamps
A lava lamp must cool down completely before you pack it. Packing a warm lamp can cause it to turn cloudy or break up the lava. To be safe, leave your lava lamp unplugged for 24 hours before packing it up.
To pack, separate the lava portion of the lamp from the base. Using bubble wrap, or even a large plastic bag, secure the glass lava piece. Wrap up the lamp base with packing paper. Since a broken lava lamp could mean a massive spill, take the time to pad the box you put your lava lamp in, using extra bubble wrap to fill gaps.
Salt lamps
For these popular lamps, you want to make sure to separate all the parts. Take the bulb and base out of the actual salt lamp. Use plastic bags to store the salt part of the lamp so it can’t get wet, and pack the rest of the parts like you would any other table lamp.
4. Wrapping up the cord
Just about all lamps come with a cord that plugs into the wall. You can carefully wrap all cords the same way. The most important thing is to protect the prongs that go into the outlet. The best way to do this is with a little foam. Plug the cord into the foam to protect the end.
To contain the cord itself, you have a few options:
Bundle up the cord and wrap separately with packing paper
Use a twist tie to hold a cord bundle together close to the lamp’s base
Protect a coiled cord by wrapping it around a toilet paper roll, using a small piece of tape to hold it in place
Your goal is to set up your lamps in your new home without having to waste time untangling a cord.
5. Secure lampshades
Although you don’t have to fully wrap a lampshade, they’re tricky items to deal with. To box them up correctly, separate them all first. You can nest lamp shades together if you want, putting a smaller shade into a larger one, but don’t make your stacks too tall.
Pad the bottom and sides of the box with packing paper first. Then, lay the largest lamp shade inside. Add a few layers of paper on top before nesting the next shade. Top off with more paper so everything is good and cushioned. Seal up the box and label it as fragile. You don’t want anything heavy going on top of this box. Lampshades won’t really break, but rough handling by moving companies can lead to tears or dents in your shades.
6. Don’t forget about the light bulbs
You’ve already taken all your light bulbs out of your lamps, so now, grab one box and pack them up. Always handle light bulbs gently and use bubble wrap or air-filled plastic padding to secure them. Wrap each bulb completely and tape closed.
You can either pack light bulbs in a small box, filling in extra space with crumpled paper, or you can get a cell box that has compartments already set. Often used for packing up glassware, most lightbulbs will fit in the spaces even wrapped.
Make sure you’ve got a layer of padding on top before sealing the box.
If you have incandescent bulbs
Incandescent bulbs are a unique item to worry about. They’re full of mercury, so if they break, it’s highly toxic. The best way to safely handle these is to not move them at all. Instead, you can safely dispose of them and replace the bulb with a new one once you move.
Label all lamp boxes as fragile
When you’re ready to seal up your lamp boxes, whether they’re holding a base, lampshades or even just the light bulbs, always label the box as fragile. No matter how delicate items are, or how carefully you pack everything, all light fixtures of any kind need extra care when moving boxes.
The fragile label will also tell movers, whether they’re professional or not, to not stack any heavy boxes on top of your lamp boxes, keeping everything safe.
Pack up and get a move on
Surprised at how complicated it is to pack up a bunch of lamps for your move? Yes, there are a lot of variables — tall bases, big shades and all those lightbulbs — but you can do it. Just remember to take care and have a lot of packing material on hand. In no time at all, you can get your lamps ready for your move.
Foreclosures have been halted and loans have been modified, even for those underwater, but what about those pesky option arm loans?
The WSJ says government officials are looking for ways to reduce losses, as a flood of option-arm related foreclosures could dent any semblance of a housing recovery.
The so-called “toxic loans,” which allowed borrowers to defer interest up to 125 percent of the loan balance, are so far underwater that they seem destined for foreclosure.
Even with a principal write-down, a mortgage rate reduction, and extended amortization, the prospect of paying off the loans still doesn’t look all that bright. That’s a testament to just how bad these loans are.
Apparently investors believe principal reductions are the key to saving these loans, along with refinancing borrowers into more traditional FHA loans.
Loan servicers, on the other hand, believe the solution is forgiving deferred interest and converting them into interest-only loans.
Unfortunately, many of these loans already have rock-bottom mortgage payments (as low as 1%), so there isn’t much room to negotiate.
Factor in the ridiculous amount of negative equity resulting from plummeting home prices, and you’ve got a loan mod scenario that would likely fail the net present value test required to complete one under the government’s program.
But the loans represent no small minority; they account for nearly 40 percent of loans 60+ days past due in Florida and Nevada, 28 percent in California, and 20 percent of delinquent loans in Arizona.
And another million option arms are expected to reset over the next four years.
They also pose a huge risk to some of the nation’s largest banks, including Wells Fargo, who inherited a $90 billion Pick-A-Pay portfolio from Wachovia.
Of course, they say they’ve been able to modify the loans using the current government program and their own loss mitigation programs, but that seems, at best, optimistic.
Then there’s Chase, which holds nearly $40 billion in option arms, acquired from WaMu, and Bank of America, who took on Countrywide’s $23 billion pay-option arms.
The problem: how do you save something that is beyond redemption? There’s a good chance most of these loans won’t be saved, and the borrowers will face foreclosure, or perhaps a short sale.
Dorothy was right: There is no place like home. Home is where we feel safe and relaxed in the familiarity of our surroundings — the sheets are just right, our favorite chair welcomes us, and we know, half-asleep and at 1 a.m., that we can get to the bathroom in exactly 10 steps.
But it turns out we might not be as safe as we think. According to the Home Safety Council (HSC), home-related injuries cause nearly 20,000 deaths and 21 million medical visits each year. HSC’s State of Home Safety in America report found that unintentional home injuries cost an average of at least $222 billion each year in medical costs between 1997 and 2001, far greater than costs from other home injuries such as violence ($98 billion) or suicidal acts ($96 billion).
Yet most of us, myself included, fail to take these numbers seriously. HSC polled Americans on the injury prevention actions they took in their homes and found that an alarming number failed to appreciate the risk and lacked either the motivation or knowledge to reduce it.
The good news is that most home injuries are avoidable with a few simple modifications, ranging in price from free to $40. Learn how easy and inexpensive it is to protect your family from the five leading causes of injury, as reported by the HSC.
Falls Each year 5.1 million Americans are injured by falls that occur in and around the home. Falls are the leading cause of home injuries and account for one-third of unintentional home injury deaths.
Recommended actions:
Put a nonslip mat or safety treads on the tub floor and use grab bars when you get out of the shower: $4-$10.
Turn on area lights when using stairs, steps, and landings: $0.
Use handrails on both sides of stairs and steps, and shoo pets away from your path (I know, easier said than done): $0.
Use a proper ladder for climbing instead of a stool or furniture: $0-$30.
Poisonings The second leading cause of home injuries, more than 2 million poisonings are reported to the Poison Control Center each year, yet only 1% of respondents in the HSC survey considered it a top concern.
Recommended actions:
Lock poisons, cleaners, medications, and other dangerous substances away from a child’s reach: $0.
Keep all cleaners in their original containers, and do not mix them. Even better? Buy non-toxic all-purpose cleaners from brands like Method or Seventh Generation, or make your own: $2-$6 for 32 ounces of self-made or purchased cleaner solution.
Use medications carefully, following the directions. Use child-resistant bottles, but don’t rely on them: $0.
Install carbon monoxide detectors in bedrooms: $20-$30 per detector.*
If someone is unconscious, is having trouble breathing, or is having seizures, call 911, but if someone seems okay and you think they may have ingested poison or you have a question, call the National Poison Control Hotline. Put the number in your phone’s address book or near the home phone (only one-fifth of polled Americans reported doing so) — it’s 1-800-222-1222: $0.
Radon is a cancer-causing, radioactive gas that you can’t see, smell, or taste. The Surgeon General has warned that radon is the second only to smoking as the leading cause of lung cancer in the United States. Test your home at least every two years or when living patterns change: $15 (or free — some state programs offer low-cost or free kits, contact your state radon contact for more information).
Fires and burns Of all fire- and burn-related injuries, 90% occur in the home. We know we should have a fire extinguisher and smoke detectors in the home (93% of the people polled did have smoke detectors installed), but most of us slack off on other precautions such as fire escape ladders (only 6% reported having one) and a family escape plan (just 26% had one).
Recommended actions:
Have working smoke alarms: about $3 to replace batteries, $20 per smoke detector.*
Create a family fire escape plan: $0.
Two story home? Keep a fire escape ladder near each upstairs bedroom window: $35+ per ladder.
Don’t leave the stove when cooking, especially when frying food, and consider keeping an easy-to-use fire extinguisher near the range: $0-$12.
Space heaters should be three or more feet away from anything flammable and turned off when you leave the room or go to sleep: $0.
If you smoke, smoke outside and put water in ashtrays before emptying. Lock matches and lighters away from a child’s reach: $0.
Blow out candles before leaving the room or going to sleep, or replace real candles with flameless ones — new battery-operated candles are made with scented wax and create a flickering glow: $0, or $10 for a 6-inch flameless candle.
Set the hot water heater at or below 120 degrees Fahrenheit to prevent burns, and test bathwater temperature before children climb in: $0.
Choking and suffocation The easiest way to prevent most choking-related deaths? Sit, and require children to sit, while eating. Only 39% of adults require children to do so.
Recommended actions:
If an item can fit through a toilet paper tube, it can cause a young child to choke. Keep small items out of children’s reach: $0.
Don’t put pillows, comforters, or toys in a child’s crib: $0.
Tie or clip the loops in window cords up high where children can’t reach them: $0.
Read the labels on all toys, especially the recommended age: $0.
Cut food into small bites for kids, and both kids and adults should sit down when they eat and chew slowly: $0.
Drowning Most drowning deaths at home are related to swimming pools and spa tubs, but there are easy ways to keep everyone safe this summer.
Recommended actions:
Sounds obvious, but stay within arm’s reach of children in and around water. This includes bathtubs, toilets, pools, and spas (more than half of the HSC survey respondents failed to do so): $0.
Keep the gate around your pool closed and locked: $0.
Empty large buckets and wading pools after use and store upside-down: $0.
To avoid suction entrapment, don’t use a pool or spa if there are broken or missing drain covers: $0, or $15+ for a drain cover replacement.
Research the safest pool cover for your type of pool: price varies.
*Rather than buying separate carbon monoxide detectors and smoke alarms, install a single unit that does both: $40-$50.
Is your safety to-do list as long as mine? Know any easy fixes that make your home a safer place for your family? I’m embarrassed to say that buying carbon monoxide detectors and testing for radon are two things I have always meant to do, but never got around to doing them. June is Home Safety Month, though, so it’s the perfect time to check it off my list!