| | Mortgage News
What Does the Fed's Quantitative Easing Mean to the Economy and Home Loan Rates? |  In the statement released after its November meeting, the Federal Reserve announced that it will purchase a further $600 Billion of longer-term Treasury securities by the end of the second quarter of 2011, in what is known as another round of Quantitative Easing (or QE2).
To help you understand what this means to the economy and to you, let's break down the details, starting with what Quantitative Easing is and the reasons behind this move by the Fed.
What is Quantitative Easing?
Quantitative Easing is the concept of the Fed becoming a heavy buyer of Treasuries and Bonds. This is done to artificially cause those security prices to move higher under the increased demand. That demand should, in turn, cause interest rates to move lower with the hope of stimulating the economy.
What other impacts might it have?
QE2 will almost assuredly hurt the US Dollar, which helps make US exports more affordable abroad as well as make imports appear relatively more expensive. Such a shift helps large multi-national companies, which have a large influence on the economy and the major Stock market indices.
Of course, the Fed can't outright say it is trying to weaken the currency. After all, haven't many members of Congress and the Administration been bashing China for currency manipulation?
But the point is, even if QE2 doesn't have a direct impact, the drop in currency value can be very beneficial to corporations and Stocks.
How can QE2 impact home loan rates?
While Stocks should benefit from another round of Quantitative Easing, Bonds may have a different reaction. And that brings us to the heart of what you need to know: What does QE2 mean to Bonds and home loan rates?
With another round of Quantitative Easing, Bond prices should initially improve because QE2 includes large Bond purchases.
But...the key word is "initially." That's because, even if Bonds show signs of initially improving, the eventual softening of the Dollar, rising commodity prices, and rise in Stock prices could become a drag on Bonds, which would negatively impact home loan rates.
The bottom line is, QE2 and a weaker US Dollar may make our exports more attractive to foreign buyers, but it may ultimately drive rates higher. That's an important point to consider if you're thinking about refinancing or purchasing a new home. The reality is, home loan rates are still near historic lows, but won't be forever.
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| | Finance News
Depositors Get a Permanent Raise
Higher FDIC insurance limits on accounts were made permanent.
by Joan Goldwasser, Kiplinger.com |  Tucked among the pages of the massive financial-reform act was good news for depositors: a permanent extension of the Federal Deposit Insurance Corp. insurance limit to $250,000. Congress had temporarily raised the limit in October 2008 from $100,000 to $250,000, but the higher limit was scheduled to expire at the end of 2013.
So if you have checking and savings accounts at the same institution, you are covered as long as the total of your balances does not exceed $250,000. The same is true for all your retirement accounts. The balances – whether they are traditional IRAs, Roth IRAs, SEP IRAs, Keogh accounts or solo 401(k) s – are totaled and the first $250,000 is protected. Anything above that amount is not insured; naming various beneficiaries does not increase the amount of insurance.
But you can deposit more than $250,000 in a single bank and have it insured if you title the accounts properly. For example, a couple with two children could open two individual savings accounts, a joint account (which would be protected up to $500,000), a retirement account for each of them, plus a trust account for each child in the name of each parent (four accounts). Those nine accounts would then be insured by the FDIC for up to $2.5 million.
To check whether your money is fully insured, go to www.myfdicinsurance.gov and use the Electronic Deposit Insurance Estimator (EDIE), the FDIC's virtual tutor. Just enter your accounts and their balances and EDIE will do the calculation for you. Or call the FDIC's hotline at 877-275-3342 (Monday through Friday, 8 a.m. to 8 p.m. eastern time) and talk to a representative.
Reprinted with permission. All Contents ©2010 The Kiplinger Washington Editors. www.kiplinger.com.
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Creative Cuisine
Stuffed Mushrooms |  Need a great hors d'oeuvre for a holiday party? Here's a super easy recipe for stuffed mushrooms that also happens to be super good. Yields 20 – 24 hors d'oeuvres.
Ingredients:
- 20-24 fresh mushrooms, stems removed
and reserved for another use
- 1 8-oz. package of cream cheese, softened
- 3-4 strips of bacon, fried crisp and crumbled
- 1 green onion, sliced thin
- 1 garlic clove, crushed or minced very fine
Directions:
Preheat broiler to low. In a bowl, combine cream cheese, bacon, green onion and garlic and mix well. Spoon equal portions of the mixture into mushroom caps and set on an un-greased cookie sheet. Broil the mushrooms for 4 to 6 minutes or until the mushrooms are cooked through and the cream cheese is brown and bubbly. A quick hint…for a vegetarian version of this dish, simply leave out the bacon.
No stranger to professional kitchens, Kirk Leins currently devotes most of his time to cooking instruction, food writing, and producing television. You can visit Kirk's website at www.NoTimeToCook.com. | |
| | Street Smarts
Happy, Not Unhappy, Holidays |  Holiday cheer can quickly turn in to holiday tears–not only for those who've waited until the last minute to beat the crowds, but for those who've been a victim of theft.
The hustle and bustle that surrounds the holidays often leave people feeling distracted, which unfortunately creates the perfect recipe for crime. Plain and simple, "Criminals often use the holidays to target victims." Here are some things for you to consider so that you can have a safe and happy holiday season...
Buddy up! Always take someone with you when shopping in the early morning hours and at night. If that is not an option for you, then at the very least, ask store or mall security to walk you to your car. And, always park in a well-lit area.
Leave your jewels at home. If you have expensive watches or jewelry, leave them at home. This is the time to protect your valuables, not display them.
Have your keys in hand. When heading out to the parking lot, always have your car keys in your hand. Don't spend time rummaging through your purse or combing your pockets, leaving you vulnerable to thieves.
Does your car have a big red bow on it? If shopping bags are stacked up inside your car, then you may as well wrap up your car with a big red bow and call it a "gift" because that is how thieves see it! Always store your shopping bags in the trunk or under seats where they are not visible.
Do you have a plan? If you plan on having your children tag along with you then you must have a "separation plan" in place in the event that your child gets lost or separated from you.
Most importantly, be aware of your surroundings at all times and then...have fun! The holidays come and go quickly so take time to smell the pine and enjoy the season with friends and loved ones.
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| | Home News
Don't Throw Your Cash in the Trash When Temperatures Crash |  If the chill in the air burns a hole in your wallet year after year then we've got good news for you–you CAN follow some easy steps to cut those winter energy bills once and for all. Here's how...
Purchase a Thermal Leak Detector. You could set yourself back nearly $400 by hiring someone to come and do a home energy audit OR hit the local home improvement store and purchase a Thermal leak detector. The average cost is about $50 and could save you over $200 in annual energy savings.
Embrace those bright sunshiny days! Even on those cold winter days, opening your blinds and curtains to let the natural sunshine in will warm up your home.
Stock up the holiday stockings–not your freezer. The winter holiday season makes for great entertaining and while you may be tempted to stock up on goodies for your freezer to feed a small army, consider this–overstocking a freezer will require more energy to be used.
Cracks, gaps and leaking oh my! Check for any gaps and cracks around pipes and vents, and seal them off with expanding foam that is designed for "home air-sealing" if they are greater than 1/4 inch.
Turn on your ceiling fan? By flipping the switch to reverse, you push warm air back down.
And last but not least, chill out a little! Turning the thermostat down a temperature or two lower could "cut your bill by about 2% per lower degree over an eight-hour period, according to EPA estimates."
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| | Facts and Figures
End of the Year Travel is Taking Flight  Fasten your seat belts...holiday and year-end traveling is taking flight! According to AAA and IHS, Global Insight, "The year-end holiday period is the busiest of the five major U.S. holidays that include Memorial Day, July Fourth, Labor Day, Thanksgiving and Christmas/New Years Day." The reason for the heightened travel is not only due to most of the U.S.' schools, elementary through college, being closed for Winter Break–it's also the most popular time for employees to join in on the fun and spend some quality time at home with their families.
Here are some interesting statistics about projected year-end travel from December 23-January 3:
- An estimated 87 million people are likely to travel this year
- Travel by automobile is the most popular mode of transportation
- A projected 4.2 million people will be flying the friendly skies this year, which is up just 1% from last year
- Americans will travel an estimated 790 plus round-trip miles this holiday season
- Travelers are projected to spend just over $1,000 per household this season, with more than a third of that budget going to transportation costs
- More than 70% of people traveling during the holiday season will be spending their time visiting with family and friends
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Did You Know? | | | | Did you know that it is considered proper etiquette to give a "Holiday Tip" to those that provide you with year-round service, such as a nanny, teacher, and housekeeper? |
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Five Fabulous Freebies – These days, many people are looking for new ways to cut costs and save money–especially with the impact of holiday spending on their budgets. Here are some great websites to help you take advantage of the freebies out there! | Tip 1: Need some new inspiration in the kitchen–or want to get your hands on some yummy holiday recipes? Check out www.allrecipes.com for over 40,000 free recipes. | Tip 2: The next time you need to call 411, dial 1-800-FREE-411 instead for free directory assistance for both residential and business listings. | Tip 3: If you're looking for a place to store online photo albums or share digital photos for free, then check out www.snapfish.com. | Tip 4: Need some new kickers but can only find them online? Shop www.zappos.com where shipping is always free! | Tip 5: Want to get the scoop on daily deals and discounts in your area? Subscribe to www.groupon.com and get free daily email alerts on the hottest bargains in your town. . |
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Quote of the Day | 
| "You will get all you want in life if you help enough other people get what they want." | – Zig Ziglar |
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Special Offer
Trivia Challenge | Cold and flu season is in full swing. Where do you find the highest concentration of germs lurking? - toilet seat
- dishcloths and sponges
- ATM key pad
- shopping carts
- gas station pumps
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For answer, scroll down to the bottom. | |
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Book Review | Living Life as a Thank You: The Transformative Power of Daily Gratitude
by Nina Lesowitz and Mary Beth Sammons | 
| Gratitude is often on our minds leading up to the Thanksgiving holiday, but the truth is that gratitude is an important principle to live by every day of the year. In their wonderful book, Living Life as a Thank You: The Transformative Power of Daily Gratitude, authors Nina Lesowitz and Mary Beth Sammons present an easy approach to implementing gratitude into our lives...and seeing the benefits that result!
Living Life as a Thank You has ten chapters, each of which contains inspirational quotes, real-life stories of people whose lives have changed due to the power of gratitude, and suggested practices. The Library Journal, in giving the book a starred (highly recommended) review called it "compelling" and said the book inspires "hope and motivation for good." | | To learn more or order a copy, click here. |
| About the authors:
Nina Lesowitz is a leader in women's business in the San Francisco Bay Area and Mary Beth Sammons is an award-winning journalist and author whose work appears in Family Circle, the Chicago Tribune's lifestyle section, and on various health and wellness websites. Their newest book is called The Courage Companion: How to Live Life with True Power. For more information, visit www.vivaeditions.com. | | |
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Thank You | | | | As always, we wish to thank our clients who have been kind enough to refer business to us. We appreciate the opportunity to provide excellent service to your family, friends, and co–workers. |
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