REAL ESTATE UPDATE
November/December 2002
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A service from
Freddie Brown, Broker RE/MAX Properties East
Office: 502-425-6000 x 220
VM: 502-992-4220
Toll Free: 800-444-1946
www.move2louisville.com
Email: FreddieBrown@HomeslnLouisville.com

Some Excellent Points About "Points"

One point equals one percentage point of your loan amount. Often, buyers will be encouraged to
pay a point or two in order to lower the interest rate on their loan. When interest rates are low, many
people rush to refinance, especially since points paid on a loan are tax deductible. You may deduct
all the "points" you pay within the year you paid them as long as the loan is secured by your primary
home (as in a refinance) or the loan is for the purchase of or building of your primary home.
However, according to Martin Nissenbaum, national director of personal income-tax planning for
óErnst & Young, sometimes it may actually be bette-F-to-spread out your deductions over the life of
the loan. For a little more self-help, go online to www.irs.gov/pub/irs-pdf/p936.pdf for a flow chart
that helps you determine the type of tax deduction that is best for you.

Fall Is A Great Time To Sell

Fall is the second best time of the year to put your home on the market. Weather is generally fair and
pleasant this time of year, making home shopping comfortable. The kids are back in school, which
can also make it a bit easier to house hunt. And, statistically, more first-time buyers are perusing the
market in the Fall than just about any other time of year. This can be just the time to put your home
on the market, especially if you have a low or very affordably priced home that is likely to appeal
to first-time home buyers. Couple that with the low interest rates we're experiencing today, and you
may sell your home very quickly. Some markets are faring better than others when it comes to home
sales right now, and statistics show that 2002 national home sales volume so far is likely to set a new
annual record. So ... take advantage of "Fall First Time Buyers" today!

Are Your Eyes Larger Than Your Wallet?

If you're like most home buyers, you'll probably fall in love with homes that are beyond your budget.
Most lenders will not approve a mortgage that takes your total monthly debt above 36% to 40% of your
gross monthly income, but you can work on reducing your debt i.e., credit cards, cars and student loans,
etc. By reducing or eliminating some of this debt before you apply for a mortgage, you'll be able to
qualify for a larger home loan. Many financial specialists suggest starting with the loan with the smallest
balance and double up on payments if possible. If you can't seem to make headway in paying off or even
reducing your debt, but you have a raise coming up, or your non-working spouse is going to take a job,
wait until these things are in place before applying for a loan. If all else fails... keep looking. Eventually
you'll find the perfect home that fits your needs AND your budget!

Stuck In A Housing Rut?

Are you or anyone you know suffering from "home-a-phobia?" That is someone who has the
financial ability to own a home, but is so filled with a number of misgivings, they can not make the
plunge. Many "home-a-phobiacs" expressed concern over buying a home with structural problems,
or in the wrong neighborhood, or losing their job, coming up with the downpayment, or making any
long-term commitment. Here's something you might want to consider. Interview several friends or
family members whom you trust who have purchased a home. Ask them your biggest concerns and
probe for answers that give you a level of comfort. Take your time, and don't ever feel uncomfortable
asking questions or expressing your concerns to your real estate professional or lender. The road to
your new home might take you longer than most, but it's a trip you won't regret.

Extinguish The Possibility Of A Home Fire

Now is the ideal time to do a quick inventory of the fire extinguishers in your house. After all, in
the coming weeks, you'll most likely be using your kitchen more often than usual. In addition, you
might be lighting more candles than usual. And you might be putting more of a load on your
electrical outlets. These three situations add up to increased fire danger within your home. Make
sure you have a multipurpose fire extinguisher in your home. In addition, choose one listed by a
testing laboratory and check the dial on your extinguisher from time to time to determine if it is still
properly charged commended that you have a fire extinguisher for every 600 square feet of
living space. And keep it somewhere that is easy to access in the case of an emergency.

Nothing herein is intended as advice on legal tax matters. This publication is not intended as a listing solicitation for property currently listed with another broker.