Mortgage Money

Fixed-Rate Mortgage

This is the plain-vanilla loan that most people think of when considering a mortgage. You will owe a certain percentage of the loan as interest to the lender. This amount never changes, and your monthly payment will remain the same over the life of your loan. Fixed-rate mortgages are usually for 15 or 30 years.

ARM

No, not the thing hanging from your shoulder. This is an “adjustable-rate mortgage.” The interest rate changes to reflect changes in the credit market out in the great, wide world.

The first-year rate (otherwise known as the teaser rate) is generally a couple of percentage points below the market rate. There are also upward limits, above which the interest rate isn’t allowed to go — this is called the cap. If your teaser rate is 4%, and you have a five-point cap, then the highest that your interest rate can go is 9%.

What’s more, the amount that the interest rate can rise each year is limited, usually to one or two percentage points per year. The frequency at which the rate adjusts might vary; make sure you know these features.

If you’re considering an ARM, think about the worst-case scenario. What if interest rates go up, and your ARM adjusts to its maximum? What will that maximum be, and when will it kick in? Will you be able to afford the payments?
And that, folks, is it: the two major types of loans.

COFI, Anyone?

One type of ARM is a COFI loan. COFI stands for “cost of funds index.” This loan doesn’t have any caps, and adjusts monthly. It is, in a sense, the most adjustable ARM of all, since it isn’t fixed for a certain time. But the index to which it is tied is in many ways the most stable index of them all: It is tied to the rate that banks have to pay their depositors to keep their money (i.e., checking accounts, savings accounts, certificates of deposit). It tends to be a slow-moving index. The COFI loan has c ertain advantages in that you can vary the amount of your payments as you wish (paying off more or less each month). If this suits your temperament and your budget, inquire about it since it is often not brought up as an option.

Hybrid Loan

Just as in a candy store, why have two flavors when we can have a mix and make three? Sure, your hands may get sticky and your tongue can turn green, but we like freedom of choice. Typically a hybrid loan is fixed for 1, 3, 5, 7, or 10 years and then converts to an ARM. This means you get stability for a given amount of time, and then your fate is cast to the winds of the prevailing interest rates. If you imagine a fixed-rate mortgage as a motorboat, and an ARM as a sailboat, then you get to run the ship under its own engines for a time before you unfurl those sails and hope for favorable winds.

Two-Step Loans

These loans attempt to have the best of both worlds: the stability of a fixed loan with the lower rates of an ARM.
They appear in their most common forms as 5/25 or 7/23 loans. Math buffs among you will note that the numbers straddling those slashes add up to 30, as in a 30-year loan. This means that your interest rate will be fixed for the first five or seven years, then the loan adjusts in one of two ways: It will either become an ARM, adjusting annually, or a fixed-rate loan. The beginning interest rate for these loans is generally lower than that of a standard 30-year fixed loan.

Balloon Loans

These tend to be short-term loans. You borrow money for, say, three or seven years, and the loan is amortized as though it were a 30-year loan. At the end of the three- or seven-year period, you owe the bank all of the remaining principal, in one lump sum — like a big balloon. Again, these loans tend to have lower interest rates than the standard 30-year mortgage. If you’re not planning to stay too long in your house, you might be interested in such a loan. The reasoning goes like this: You pay less in interest — saving potentially thousands of dollars — over the course of the loan than you would with a 30-year fixed. So you’re less out-of-pocket when it comes time to sell.

Keep in mind, though, that if for some reason your plans change and you want to stay in the house, you’re going to have to pay off the loan in full — by getting another loan, at the prevailing interest rates, and with the attendant costs of getting that new loan. So it isn’t for the faint of heart or irresolute of mind.

Pros and Cons

To review: There are two main loan categories — fixed- and variable-rate. What are some of the pros and cons of these two main types?

Fixed-Rate Mortgage

• Pro: You can determine exactly how much you’re going to pay each month for the next 30 years.
• Con: You will pay a premium for this predictability. This loan will generally cost more than an ARM.

Tip: Get a fixed-rate mortgage if stability is important to you or you’re less than confident about the economy or your job security. (If it’s the latter, you ought to have a nice nest egg stashed away.)

Adjustable-Rate Mortgage

• Pro: Because the interest rates are lower for this type of loan, it’s easier to borrow more. This is often important to first-time home buyers who are already stretching the limits of what they can afford.
• Con: If interest rates rise you could be up the creek without a paddle — if you haven’t

Tip: Get an ARM if you’re expecting to stay in your house for less than five years.

SPECIAL NOTE:

The mortgage industry has changed substantially over the last few years and so have the professionals that serve the public. Make sure that you align yourself with the right person that understands your unique situation and matches you with the right mortgage product that best meets your needs.

Property Details

Property Photos

Property Map

View Larger Map

Property Details

Property Photos

Property Map

View Larger Map

The prized mortgage interest tax deduction has been part of the federal tax code since 1913. Currently, it costs the U.S. Treasury an estimated $94 billion a year.   The Mortgage Interest Deduction has been a part of the US Tax Code since 1913.   Is it now time to eliminate the deduction in part or in total?

The Math Behind the Mortgage Tax Deduction

20720 E Happy RD Queen Creek, AZ 85142

4 Bedroom Queen Creek Home for Sale. Custom built horse property with 4 stall horse building. This is NOT a short sale and NOT a preforeclosure, seller can provide a QUICK offer reply. Master bedroom split floor plan with double basin master bath offering separate tub and shower. Walk in closet. Dual zone heating and cooling. Master bedroom exits onto large covered patio. Served by the Queen Creek School District.  Many niches and decorative pot shelves. Beautiful self cleaning Pebbletec saltwater diving pool. Fourth bedroom also configured as den. Gas fireplace in family room. Near Horseshoe Park & Equestrian Centre and Santan Regional Park with miles of horse trails. One year home warranty including pool option. 4 Bedroom Queen Creek Home for Sale.

Property Details

Property Photos

Property Map

View Larger Map

Front Elevation

Upon Entering Notice The Fresh New Exterior Paint And Great Curb Appeal & Landscape. With Lots Of Remodeling This Home Is Wonderful In Many Ways, With A Kitchen That Opens Perfectly To The Living Rm. Great For Entertaining Friends And/Or Fmaily. (Refrigerator, Washer & Dryer STAYS). Neutral Colors & Flooring Through Out, Light N’ Bright And Spacious. Head Out Back To This Nice Size Back Yard Reatreat. This Property Has Pride-In-Ownership, & IS A TRADITIONAL SALE. True 3 Bed Room PLUS A Loft For An Office, Study, Or Kids Play Room. A Must See Home All Located In Very Desirable Madera Parc With NO HOA (But A Gorgeous Community) In The Heart Of Gilbert. Come On Over And Welcome Home.

Property Details

Property Photos

Property Map

View Larger Map

Front Elevation

4 bedroom home for sale in Apache Junction, Arizona.  This is a “Traditional” sale, neither a short sale nor bank owned; make an offer and get a quick reply.  Finally, an absolutely move in ready home.  Take a look at this sensational custom home with its fantastic Superstition Mountain views.   The designer used stone and tile to create a simply stunning entry.  Each room has received careful attention to detail down to the real wood flooring in the bedrooms and den.  The large kitchen boasts an island with surrounded by custom oak cabinets. 

Perhaps what sets this home apart from other homes are the stunning views off the back of the property.  Enjoy the natural beauty from the covered patio or venture to the top of the porch for sights of the shimmering night lights.  This is a true luxury home in the desert with plenty of room for your horses or RV parking.   The generous three car garage provides ample storage of your vehicles or ATVs.

The home is located within the Apache Junction Unified School District of Pinal County.

Don’t miss out on your opportunity to own this 4 bedroom home for sale in Apache Junction, Arizona.

Property Details

Property Photos

Property Map

View Larger Map

9545 E Inverness Ave, Mesa, AZ 85209

4 Bedroom Home For Sale in Mesa, AZ with private pool. Facing large community park with sports court. Functional RV gate to park your quads or boat. Split bedroom floor plan. Master bedroom has door directly into backyard pool oasis. 4 bedroom home for sale in Mesa, Arizona. Covered patio facing south for warmer winter exposure. Abundant kitchen cabinets. Master bath with separate bath and shower, double basin vanity. Patterson Elementary, Smith Jr High, Skyline Sr High Schools. Near San Tan Village Shopping Ctr. 4 bedroom home for sale in Mesa, AZ.

Property Details

Property Photos

Property Map

View Larger Map

FastTrac® GrowthVenture™ in Gilbert
January-March 2011 Class Picture

Back row, from left: Ed Nusbaum, FastTrac Business Counselor; Phillip Blackerby, FastTrac Instructor; Ernie Keith, Ernie Keith’s Get Fit Quick Boot Camp; Monte Berget, Sun King Fencing and Gates; Rev. Amy Miller, Chapel At the Farm; Ken Millar, Arizona Realty Team, RE/MAX.
In front, from left: Karin Burns, DVM, Priority Pet Hospital; Francine Hardaway, FastTrac Administrator; Charlene Spillum, RE/MAX Alliance Group.

What is FastTrac®?

FastTrac is a comprehensive educational program that provides entrepreneurs with business insights, leadership skills and professional networking connections so that the participants are prepared to create a new business or expand an existing enterprise. FastTrac programs are currently being provided in 147 cities in 49 states and internationally. More than 80,000 participants have attended FastTrac classes in the U.S.

How was FastTrac started?

FastTrac programs were first launched through the University of Southern California’s Entrepreneurship Program in Los Angles in 1986. Today, the courses are delivered to students in urban and rural settings through organizations such as local Chambers of Commerce, Small Business Development Centers (SBDC), Economic and Women’s Development Centers, universities, community colleges and individual consultants.

What are the FastTrac programs?

FastTrac® GrowthVenture™

is designed for existing small business owners, with the focus of helping them learn and implement key business strategies to transform and improve the business. This 10-session program provides participants with information on strategic planning, legal issues, market research and analysis, financial documents and cash flow management. It also covers financing methods and growth strategies for small business owners.

FastTrac® TechVenture™

is for technology firms – primarily in information technology or life sciences – who need financing to launch developed products into the marketplace. Its 10 sessions emphasize business planning and presentation to financial sources, such as banks, private investors or venture capital firms.

FastTrac® NewVenture™

is a program designed for aspiring entrepreneurs or start-ups. The 10-session program focuses on new entrepreneurs and helping them determine whether their business concept is a viable business opportunity. The course covers personal and business criteria, market research, financial documents and financing a new venture. Participants also learn how to conduct a feasibility study on their business idea.

What makes the FastTrac program unique?

Entrepreneurs, by their nature are independent, focused individuals who like to have control of their lives, yet feel isolated because of the amount of time they put into their businesses. FastTrac classes offer solid business content, but also give entrepreneurs access to the bigger business community. In class, participants meet with knowledgeable business instructors, peers experiencing similar business challenges, and business advisors, such as bankers, CPAs, and marketing experts. Collaborative learning and encouragement is a common part of each class. In fact, when classes end, most participants want the course to continue because they enjoy the stimulating interaction and feedback from peers.

FastTrac also teaches participants to think strategically about the business. They learn to work on the business, rather than just in it. As one 13-year business owner and FastTrac participant said, “Before FastTrac, I saw my business as ‘I’, now I see my business as ‘it’.” Ewing Marion Kauffman

The Kauffman Center for Entrepreneurial Leadership is a major funder of the First Step FastTrac program. The Kauffman Center was created by Ewing Marion Kauffman, a true entrepreneurial leader. Born into a modest home in Kansas City in 1916, he left as a young man to serve in the U.S. Navy. After returning to his hometown, he took a job to provide for his family. He believed that hard work, dedication to principles, and respect for others formed the path to success. With an initial investment of $5,000, Kauffman started a pharmaceutical company in the basement of his house in 1950. First-year sales reached $36,000, and the company made a net profit of $1,000. During the years, he assembled a team and built Marion Laboratories Inc. into a diversified health care colossus with annual sales exceeding $3 billion. Mr. K, as he was called, created the Ewing Marion Kauffman Foundation as an ”uncommon philanthropy” whose mission is to help create self-sufficient people in healthy communities and endowed it with more then $1 billion.

In 1992, a year before his death, Mr. K created the Kauffman Center for Entrepreneurial Leadership, recognizing that the health of the economy is dependent on the ability of entrepreneurs to grow companies. He was convinced that the best way to help entrepreneurs is to identify and teach the knowledge, skills, and values that contribute to entrepreneurial success. If entrepreneurs could learn how to develop successful companies, jobs would be created and the economy would be strengthened. This, he believed, would help the Kauffman Foundation achieve its mission of “self-sufficient people in healthy communities.”
For more information on FastTrac or the Kauffman Center, go to www.kauffman.org or call (800) 489-4900      .

Learn more about FastTrac …

Next FastTrac® Programs in Greater Phoenix
REGISTER AT www.arizonaft.com
Typically FastTrac programs are available in four Valley cities:

•    Gilbert,
•    Maricopa,
•    Mesa and
•    Tempe.
Programs begin in late-January and mid-September each year. See CALENDAR for specific schedules.

FastTrac® TechVenture™ in Tempe
Underwritten by the City of Tempe
Dates:    February 7, 2011 to April 11, 2011
Schedule:    Monday evenings from 5:30 to 8:30 p.m.
App. Deadline:    January 27, 2010
Class Location:    Terralever
425 S. Mill Ave., 2nd Fl.
Tempe, Arizona  85281
Map: http://bit.ly/TerraLeverMap

FastTrac® NewVenture™ in Mesa
Underwritten by the West Mesa Community Development Corporation
Dates:    April 6, 2011 to June 8, 2011
Schedule:    Wednesday mornings from 9:00 a.m. to 12:00 noon
App. Deadline:    April 20, 2011
Class Location:    West Mesa Community Development Crop.
567 W. 10th St.
Mesa, AZ 85201
Map: http://bit.ly/fasttrac-mesa

FastTrac® GrowthVenture™ in Gilbert
Underwritten by the Town of Gilbert
Dates:    September 13, 2011 to November 11, 2011
Schedule:    Tuesday evenings from 5:30 to 8:30 p.m.
App. Deadline:    September 20, 2011
Class Location:    Gilbert Municipal Campus
Municipal Office Building II, Conference Rm. 100
90 E. Civic Center Dr.
Gilbert, Arizona 85296
Map: http://www.tinyurl.com/FastTrac-Gilbert

Entry Villa Siena

Great Venue for Weddings and Special Event

www.villasiena.cc

890 W Elliot Rd
Gilbert, AZ 85233