- Many homeowners are not taking advantage of refinancing their mortgages despite historically low interest rates, which could save them an average of $3,000 per year. Over 6 million homeowners meet the criteria to refinance and save money but have not yet done so. - Refinancing makes financial sense for homeowners with mortgage rates over 4.5% or who bought a home in recent years with less than 20% down. Homeowners are refinancing to get lower fixed rates, switch to adjustable rates, or change their loan terms. - Refinancing can have benefits beyond lowering payments, such as using the equity to remodel homes, resolve property issues after a divorce, or launch new

1. A surprising number of homeowners
aren’t taking advantage of “historically
low” mortgage rates to refinance, said
Diana Olick of CNBC.com. The number
of people refinancing their mortgages
dropped by nearly a third in 2015 in
anticipation of the Federal Reserve’s
interest rate hike. But mortgage interest
rates actually fell 30 basis points over
the same period, as investors spooked
by global economic turmoil rushed to
the safety of government bonds.
Right now, 6.7 million homeowners
have enough equity in their homes
and high enough credit scores to save
an average of $3,000 per year on
mortgage payments by refinancing,
according to analysis by Black Knight
Data & Analytics.
It’s true for the past few years it has
been difficult to “refi” due to the
decline in home values. But now with
the return of home appreciation,
restructuring your home loan makes
financial sense. Prime candidates are
homeowners with a mortgage rate over
4.5% or buyers who over the past few
years bought a home with less than a
20% down payment.
Homeowners are switching loan
programs, combining loans into one
fixed lower rate, all while saving
thousands of dollars. For those who
have a long term goal of staying in their
homes, some are moving from an
adjustable to a fixed rate mortgage or
changing the terms by taking the old
30-year term and advancing it to a
15-year term. Of course, there are
homeowners that are on the move,
and they can refinance into a 3/1, 5/1
or 7/1 adjustable, giving them an
exceptionally low interest rate.
This year we are seeing remodeling
returning to 2006 levels. As long as
home appreciation continues to climb
and interest rates remain at historically
low levels, why not improve your home’s
value with a new kitchen or bathroom?
There are couples who have to resolve
property issues, particularly those in a
divorce. With a refinance, you can
simply remove the absent former
spouse from the note to achieve this
financial settlement.
Refinances can open avenues of
income. Entrepreneurs have used their
home to launch into new businesses.
Or others have used funds to buy a
second home or an investment property.
Sensible financial planning can be
achieved by structuring smart financial
decisions through a residential refinance.
Please give me a call today to discuss
your options.
May Issue 2016
Residential Refinance
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2. Paul Gauguin managed to get a mere 150 francs for one of his
paintings while he was a struggling artist. Jump forward a hundred fifty
plus years and art buffs are clamoring for his When Will You Marry?,
which sold last year for $300 million. Marysia Zipser, an aficionado of
fine art, has been acquiring paintings since the early 80s. Her love of
Italian post-impressionist artwork has been very worthwhile. She states,
“Art is still the best investment.”
Art has been emerging as a new asset class for the well-diversified
portfolio. The reported returns are enough to catch anyone's eye: The
index of fine art sales, used by art advisors to sell art funds, shows an
average annual return of 10% over the past four decades. Will it
continue? Georgina Adam, who has spent more than 30 years writing
for the art market, predicts a downturn for 2016. But then again, who
cares? If you love a painting and it brings joy and happiness to your
everyday life, go ahead and buy it. And if it brings great profits?
Well, all the better.
Shown above: DAMERINO, Olio su tela, 40 x 50, 2015
by Vito Stramaglia, vitostramaglia.com
Best Sites
kayuconnection.com/
best-home-improvements/
Read the reviews of expert real
estate agents, interior designers and
potential homebuyers for insight into
increasing the value of your home.
hgtv.com/remodel/
interior-remodel
Both inviting and inspirational, enjoy
the videos featuring real remodels.
thisoldhouse.com/toh
In-depth and “in deep” information
about plumbing, heating, and
electricity. Get contractor smart
before you hire one.
CoreLogic reports a nationwide
increase of 6.8% for home sales
in February 2016. Anand
Nallathambi, president and CEO
of CoreLogic, says, “Improved
economic conditions and tight
inventories continue to drive
exceptionally strong sales in many
markets, especially homes priced
below $500,000.” For a neighborhood
snapshot, consult your Realtor.
A R T A N D A R C H I T E C T U R E
This newsletter is published for home owners and real
estate investors. Please refer to my phone number for
my specific opinion on various topics and loan programs.
This information is provided for general use only and
should not be relied upon in making an investment, tax
or legal decision.
Bond Marketing ® 5/2016
N The number of “starter homes” on
the market in the 100 largest U.S. cities
has dropped by about 44 percent since
2012, according to real estate listing site
Trulia. The lack of supply has driven up
prices for modest, entry level homes by
104 percent in Oakland, 78 percent in
Denver, and 50 percent in Portland.
The Washington Post
N Buffeted by volatile markets, more
hedge funds closed their doors last year
than at any time since the 2008 financial
crisis. Some 979 hedge funds closed in
2015, up from 864 in 2014. The fourth
quarter of 2015 also saw the smallest
number of new hedge fund openings
since 2009.
Financial Times
N The top 1 percent of U.S. earners had
an average income of $1.26 million in
2014, down from $1.56 million in 2007,
a 19.1 percent drop. The bottom 90
percent saw their average income fall
10.7 percent to $33,068 in 2014, down
from $37,017 in 2007.
CNN.com
N Immigrants started more than half of
the current crop of U.S. based startups
valued at $1 billion or more, according
to a study by National Foundation for
American Policy, a nonpartisan think
tank. The 44 biggest immigrant startups
generated 760 jobs per company.
WSJ.com
N Pompoms are back on about everything
–shoes, coats, scarves and curtain edges.
As the wedding season hits, look for
bouquets, boutonnières, flower girls’
headbands and center pieces punctuated
by pompoms.
Wall Street Journal
Noted
Remodel for the Future
Out for 2016 is some data to boost the value of your home. With
years of reviewing these reports, we would like to emphasize the rules
are applicable to the region of the country you live in. One of the best
sources for home improvements will be a Realtor who knows your
neighborhood. If you are going to undertake a major remodel, “build
for the future.” There are currently some 40 million folk that are 65
years old and over. By 2040 there are expected to be some 80 million
seniors accounting for 21 percent of the population. Currently, there
are approximately 40 million over age 65. A master bedroom with a
bathroom on the first floor is a highly desired feature anywhere in the
country. Casitas and granny flats make for great floor plans, and if
vacant, they can provide a steady stream of income as a rental.
For a fresh look and getting your home to shine like no other,
Consumer Reports recommends updating the kitchen. New appliances,
countertop, flooring and painting will breathe new life into the space.
For an updated look, consider the latest spin on stainless steel products.
There are versions of black stainless steel offering a softer, less
reflective finish but with the same cachet as the original. For counter-
tops, Quartz engineered from stone chips, resins and pigments appears
to be the new countertop material, alongside granite and marble.
Realtor Magazine advises embracing healthy building materials that
are more resilient to bad weather. Remodeling for the future means
enjoying your home as you like it, but if you are able, keep in mind
the resale return on investment.
Insights
Investing In Art
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