Premier Mortgage Group

There’s no better time to sort through the growing pile of papers in your home office than when you’re preparing to file year-end taxes. While organizing paperwork and personal files can seem like a daunting task, it certainly doesn’t need to be. Master Lock has provided the following tips for organizing and safely storing important documents for a smooth tax filing process and more organized year.

“Eliminating unnecessary paperwork and storing tax files in one organized, secure place is vital to a stress-free tax filing process,” said Rebecca Smith, vice president, marketing for Master Lock. “By creating and maintaining a master storage system, individuals can not only ease the tax filing process, but also enjoy a feeling of preparedness year-round.”

1. Purge the paperwork

First things first-clear the clutter. Go through all of your paperwork and eliminate anything you no longer need, shredding identifying documents to protect against identity theft. Get rid of expired warranties and year-old receipts and bank statements.

2. Safely store crucial records

Designate a specific storage space for vital documents including birth certificates, marriage licenses, passports, wills and social security cards. These items, as well as any important memorabilia, should be stored in a locked, fire retardant box. Not only will you always know where these items are, they’ll be safe from home mishaps.

3. Create a tax file

Create a separate file for all of your tax documents. Organize this file into 10 categories: income (pay stubs, W-2s, interest statements), medical (medical expenses and health insurance out-of-pocket), donations (cash and non-cash donations), real estate (interest statements from mortgage, tax assessments), child care (payment receipts), tax correspondence (important IRS or state revenue service letters), student loans (statements of payment), miscellaneous receipts (any receipts that might be needed for deductions), payments (records of advance payments) and old tax papers (old tax returns). Continue to use your tax file year-round, and you won’t have to scramble for these documents when it comes time to file next year.

4. Back up everything

Make digital copies of important documents and store them in your fireproof box on a zip or thumb drive. Use a secure online organization and security solution to store log-in and password information for bank accounts and credit cards as well as lock combinations or key numbers to your file boxes. Consider appointing a guardian as an additional security measure who knows where and how your records are stored for easy access in your absence.

5. Make it a tradition

Select a specific time of year (perhaps when tax time rolls around again) and make your review of these records an annual occurrence. This will ensure your information is streamlined and up-to-date and that finding or organizing this information is never an overwhelming process again.

Mortgage interest rates improved this past week on the Fed’s FOMC Announcement.  At the conclusion of its FOMC meeting on Wednesday, the Fed announced that they plan to leave the Fed Funds rate at current levels of 0% to 0.25% through the end of 2014, signaling concern regarding the economic recovery.  Previously, the Fed had indicated that it planned to leave the Fed Funds rate at current levels through mid-2013.  The Fed also cut its forecast for 2012 GDP to a range of +2.2% to +2.7% from its previous forecast of +2.5% to +2.9%.  Economic data was mixed.  December Pending Home Sales, December New Home Sales, December Leading Economic Indicators, and the advance report on Q4 GDP were weaker than expected.  The November FHFA Housing Price Index, December Durable Goods Orders, and the University of Michigan Consumer Sentiment Index were stronger than expected.  The Treasury auctioned $99 billion in 2 Year, 5 Year, and 7 Year Notes, which were met with reasonably strong demand.

The Dow Jones Industrial Average is currently at 12,639, down about 80 points on the week.  Crude oil spot prices are currently just under $100 per barrel, up over $1 per barrel on the week.  The Dollar weakened versus the Euro and Yen on the week.

Next week look toward Monday’s Personal Income and Outlays, Wednesday’s ISM Manufacturing Index, Thursday’s weekly jobless claims, and Friday’s employment report for January as potential market moving events.

“‘Stranger and stranger’, said Alice,” and so it was this week at the Fed, in Europe, and Mr. Obama’s State of the Union.

Some brave souls thought the Fed would surprise by rolling out QE3, and begin to buy more MBS, driving mortgage rates down. Everyone expected a pair of meaningless inside-Fed jokes (more transparency, and an inflation target) and we got those. Nobody expected this: to extend its zero-percent rate from 2013 to the end of 2014.

Bonds have rallied, the 10-year T-note back down to 1.92% and mortgages close to 4.00%, markets still adjusting. Bernanke’s term expires a year before the end of the new zero-rate period! 2014 is so far off in the economic future that nobody can know its conditions, but you can bet — bet a lot — that the Fed would make a three-year commitment only if it is seriously worried. That anxiety has penetrated even the stock market, which has sold off for the first time in years after a new easing by the Fed. The Fed’s concern was justified by today’s weaker-than-looks Q4 GDP report.

Europe… the ECB will NOT allow a bank to fail. Those dominoes are off the table. The ECB may or may not play the ultimate card, buying or second-stage monetizing Club Med wallpaper, but banks will not be the trigger for ultimate euro collapse.

However, the underlying disaster is still rolling along. Christine LaGarde, French Minister of Finance until last summer, now Managing Director of the IMF, this week delivered a speech worthy of the White Queen. “Why, sometimes I’ve believed as many as six impossible things before breakfast.” In grand French style, her speech soooo important, soooo without consequence: demand European growth measures simultaneous with cutting spending and raising taxes; a larger financial firewall but no source for the money; and deeper integration among cultures farther apart every day. Banks not in play, European economies will determine the next stage there.

“The state of the union is getting stronger.” Uh-huh. Fifteen hours and fifteen minutes after the President spoke those words, the Fed announced an economy in such peril that its previously unprecedented aid would extend over the horizon.

Okay. All Presidents have the right to use lipstick. However, forty minutes and 58 paragraphs into his words, words, and words, the President first mentioned “homeowner.” Gave it three sentences to describe a refinance proposal that does not exist and will not. Three weeks after the Fed Chairman, a Fed White Paper, and four other Fed governors and regional presidents identified housing as the most serious risk to the economy, why it is, and what to do about it… three empty sentences in the SOU.

The 12th and 69th paragraphs (only) contained the word “deficit” in self-congratulation for last year’s painful mini-cut. Nowhere in the speech was a reference to a domestic spending cut or planned spending discipline of any kind.

We are entering the second year of an inert White House. Blame the Tea party, rightly, but a second year with no meaningful, Congressional pass-able economic proposal? At all? When in modern times has the White House been so dormant?

FDR was active, heaven knows. Some still argue about what he did, but not that he tried with mighty invention. Harry Truman let no grass grow in a deadly time and with a hostile Congress. Ike knew how to use staff better than anybody; it got him time for golf, but he got stuff done, and ornery Democrat Sam Rayburn ran Congress. JFK’s two years had questionable result, but action! Statues of LBJ would be common had he not become entangled in Vietnam, as any President might in 1965. Odd, brilliant Dick Nixon was plenty productive until the last six months, and never had a Republican Congress. Gerry Ford restored faith and fought inflation. Jimmy Carter never connected, and micromanaged his way to oblivion, but was anything but asleep. Anything Ron Reagan got done in eight years had to be negotiated with Tip O’Neil. Daddy Bush faced nothing but Democrats, and Bill Clinton had to make deals with the Mad Hatter. Newt.

These last 11 years… I find no parallel except the emptiness of Harding and Coolidge. Hell, even Herbert Hoover tried hard.

Fourth Quarter GDP arrived plus 2.8%, but consumer spending rose only 2.0% (after all that media jive through the holidays), and the savings rate fell below 4%, leaving little slack in household budgets. Inventory rebuilding aside, GDP rose only 0.8%, and that was boosted by an improbable 10.9% jump in residential construction, likely to be revised closer to Q3′s 1.3% gain.

Mortgage interest rates increased slightly this past week as economic data was generally either better than expected or in line with expectations.  Economic reports stronger than expected included the New York Empire State Manufacturing Index, the NAHB housing market index, and weekly jobless claims.  Weekly jobless claims fell by 50k on expectations that they would fall by 16k.  Reports in line with expectations included December Industrial Production, December Capacity Utilization, December Building Permits, and December Existing Home Sales.  Inflation data was also in line with expectations.  The December Consumer Price Index was up 3.0% year over year and excluding the food and energy components, core CPI was up 2.2% year over year.  Also of note, borrowing costs inItalyandSpainwere better than expected which put pressure on Treasury yields.

The Dow Jones Industrial Average is currently at 12,691, up about 270 points on the week.  Crude oil spot prices are currently at $98.35 per barrel, down slightly on the week.  The Dollar weakened versus the Euro and strengthened versus the Yen on the week.

Next week look toward Thursday’s Durable Goods Orders, weekly jobless claims, and New Home Sales along with Friday’s first look at Q4 GDP as potential market moving events.  Also, the Federal Reserve’s FOMC meeting concludes on Wednesday.

More positive US data and relaxation of European frights have combined for higher interest rates and support for Wall Street’s warm-fuzzy machine.

One week ago, downgraded credit in Europe and another failure in Greek debt negotiations had taken the 10-year T-note to 1.85% and big-equity refis a hair below 4.00%. Today, nothing is resolved in Europe, but nothing is falling, either, so 10s are back to 2.02% and even a 20%-down low-fee mortgage is near 4.25%. Adios, refis.

The mortgage spread to 10s — 2.25% — is very wide, now opened in part by the new-mortgage surcharge inflicted by Congress and the White House to pay for part of the payroll tax cut. Which the public doesn’t know, because mainstream media can’t be bothered to cover the madness, and the Fed every day trying to close the spread.

The most striking US data is the decline in weekly claims for unemployment insurance, which seem decisively to have dropped below 400,000 (352,000 last week) where we had been stuck for most of 2011. Fewer layoffs is not hiring, but it is good news. Regional Feds report up-ticks in manufacturing. Inflation is receding from its commodity push last year, overall zero change in December CPI.

Then a data-interpretation argument, this time housing. The consensus is very optimistic that housing is past its bottom and 2012 will mark beginnings of recovery for construction and resales. I wish… oh, how I wish. The optimists assert pent-up demand, household formation, lower listed inventory, and faith. Halleluiah, brothers and sisters.

Always-suspect NAR has reported a 5% gain in sales of existing homes in December. Also a balmy, La Nina split-jet December, northern-city NFL finales and playoffs in dry 30-degree sunshine. Economic data is adjusted for season, but not weather. NAR also reported that one-third of contracts failed, its members correctly blaming mortgage underwriting and appraisals.

There is some legitimacy to hopes for new construction because builders are agile in shifting location and price point, and some places really are short of housing (North Dakota). However, new delinquencies are not improving, there is no work-off of distressed inventory, and all major measures of prices resumed their declines early last fall. The household-formation argument is based on recent historical pattern, but a hard look contradicts: we have a 1930s-style decline in birth rate, and for good or ill a sharp drop in illegal immigration. Pent-up demand is offset by pent-up caution about prices.

The void in political leadership continues, and among economic thinkers of all stripes the widening, hysterical scatter of what-to-do-if-you-were-king.

Heaven help moderates: Democrats were thrilled this week by Mitt Romney’s exposure as wealthy (who knew?) and paying completely legal taxes, if low in some parts. This guy tithes, 10% of his considerable income to his church. Lefty Democrats think that tithing is taking 10% of somebody else’s income, and Righty Republicans are in a 16th century argument about what a church is, and whose is acceptable.

Economic policy has two centers of confusion: stimulus versus austerity, and the central banks. Ordinarily sensible people chant: short-term stimulus, then austerity. Pardon: when is then? Less sensible people demand spending on infrastructure. Maybe we could avoid Japan’s bridges-to-nowhere, but even nifty new bridges to somewhere add what multiplier to economic growth? Governor Moonbeam’s California bullet trains are the most questionable public investment since the projects at Pruitt-Igoe.

The central banks. I hear more and more center-thinkers drifting toward the Libertarian posse. A good guide for 10 years has been the www.hoisingtonmgt.com quarterly, but the newest issue demands “a five-year moratorium on all new Fed actions.” A bright, studious investment manager and friend (better nameless) refers to Fed “meddling.” As we enjoy better US data, and no new recession, please understand that the Fed and ECB are holding open our living space against crushing deflationary pressures. And until accidental healing, or somebody finds the support to do useful things, the issue is in doubt and central banks are playing for time.

Big questions for spring: is the decline in inventory a good sign for prices, or a sign of demoralization; and what happens when distressed inventory is released to market?

You may think I’m all wet, but I’ve decided to talk about condensation, only because I receive a lot of questions about foggy windows in the winter.

Apparently, I’m not the only one.

“We often get calls from homeowners who are concerned that their windows are ‘sweating’ or leaking either inside or outside the home because they see moisture on the glass,” says Christopher Burk, technical product manager at Simonton Windows in Columbus, Ohio.

That’s simply not the case.

“While condensation may collect on the interior or exterior of energy-efficient windows, the units are really doing their job by helping serve as a barrier in the home,” Burk says.

Windows don’t cause condensation. They just prevent the moisture in the home from escaping to the outside.

“If the inside glass surface on double- or triple-glazed windows show excessive moisture, you can be reasonably sure that the moisture is also collecting on your walls and ceilings,” Burk says. “This means you should take steps to reduce the humidity level in your home by using exhaust fans and dehumidifiers.”

A lot of the water vapor is created by the inhabitants.

A family of four can add a half pint of water vapor every hour to the home just through normal breathing and perspiration. And, if you take a five-minute shower, you produce another half pint of water vapor. Even the simple act of cooking dinner on a gas stove can produce two and a half pints of water vapor.

Water vapor is part of our lives and our homes. To help control the amount of condensation in the home, experts at Simonton Windows recommend the following tips:

Use kitchen and bathroom exhaust fans.

If you have a humidifier, set it to the correct outside temperature.

If your home is overly humid, or if you have a damp basement, use a dehumidifier.

Properly vent clothes dryers, gas appliances and stoves.

Open a window in the bathroom.

Make sure your attic, basement and crawl spaces are well-ventilated and free from obstructions.

Store firewood outside. Freshly cut wood can consist of up to 45 percent water, which adds water vapor to the home. Even well-seasoned firewood generally has a 20 percent to 25 percent moisture content.

Open curtains and blinds to allow more air circulation around your windows.

Homeowners with the most cause for concern are those with older, less efficient windows.

“Windows are just like any other major part of the home,” Burk said. “They wear out over time and need to be replaced. If your windows have air leaks, don’t close properly, or are failing to act as a solid barrier to the environment, then it’s time to consider replacing them with energy-efficient windows.”

Burk also recommends knowing the difference between condensation on the glass and between the glass panes of the window.

“If you see moisture, fogging or cloudiness between the panes of glass in your window, this indicates that the seal of your window has failed and it’s time to get a new window,” Burk says.

“Failed seals lack the energy efficiency and features necessary to help you keep energy bills low and enjoy comfortable living in your home,” he said.

“While condensation on the interior or exterior of the glass is manageable, moisture between the glass needs swift attention by homeowners,” according to Burk.

By Alan J. Heavens

To prevent a storm from causing a major headache at a vacation home, keep a few things in mind besides locking the doors and stopping the mail for the winter.

“Turn off all water and blow out (water lines) with an air compressor if you are turning off heat in a climate that freezes,” says plumber Tim Walker of River Edge. “Put (non-toxic) antifreeze in all sink, tub/shower and washing-machine traps, and remove water from toilet tanks and bowls and add (that same) antifreeze.”

Or, “just lower the heat to 45 degrees and install a special thermostat in the house that will call your (main) home or cell phone if the temperature goes below 45,” says plumber Rob Wickersheim of Hackensack. “This way you have some time to get there and fix the problem before any real damage occurs.”

Hire a local contractor to keep on eye on the vacation property, particularly during/after storms.

Keep a couple sheets of half-inch plywood on hand for emergency cover-ups before/after storms. Have a manual saw, hammer and 2-inch common nails on hand, as power tools are worthless during an outage.

Be aware that oil deliveries can force air out of the storage tank and into the fuel line. When the furnace comes on and calls for fuel, it will not receive enough due to the air bubble and will shut down. This could lead to costly flooding should pipes burst due to lower temperatures.

By Tom Skevin

Mortgage interest rates improved slightly this week on continued European fears. Friday’s announcement that S&P is set to cut France and Austria’s AAA rating, along with rating cuts to other European sovereigns, rattled markets. The international trade gap in November widened sharply and more than expected to $47.8B, from $43.3B in October. A monthly dip in petroleum prices helped bring down import prices by 0.1%. December Retail Sales advanced, but less than expected, edging up 0.1%, while the Consumer Sentiment Index moved higher, continuing its rise since August. Business Inventories also continued its moderate but steady increase, in line with final demand. However, recent improvements in initial jobless claims hit a speed bump last week, back up 24,000 to 399,000.

The Dow Jones Industrial Average is currently at 12,374, nearly flat on the week. Crude oil spot prices are currently at just over $98 per barrel, down almost $4 per barrel on the week. The Dollar strengthened versus both the Yen and Euro on the week.

Next week look toward Thursday’s Consumer Price Index, Housing Starts and weekly jobless claims along with Friday’s Existing Home Sales report as potential market moving events.

The one bright spot in the world is the resilience of the US economy, not re-entering the recession so widely forecast last fall, and so far impervious to events in Europe.

However, the failure of leadership in Europe, and here — hell, everywhere — seems to be coming together in another chaotic moment. There is no dominant thread to events, instead a tangle rather like the first time the kids helped to take down the Christmas lights. Find the end of one string, then another….

Here in the US: a surge in consumer credit (10% annual growth rate in November) may or may not indicate consumer and banking revival, or survive revision, but beats contraction. Consumer confidence numbers are in a sustained rise, sometimes correlating with a better job market. Tempering that enthusiasm, the ballyhooed holiday retail sales did not take place: fibbers on the stock-market channels oversold a mere point-one percent gain in December sales. Small-biz surveyor NFIB found a fourth-straight monthly gain, but shallow- slope, net index no better than last January.

On concern for the rest of the world, 10-year T-notes have fallen to 1.85% today, but there is no mortgage follow-through, largely because of the unspeakably stupid mortgage-rate surcharge imposed to pay for part of the Social Security tax cut.

Outside the US, in approximate order of importance:

The flame is rising under long-simmering Iran. Sanctions imposed to halt their nuclear program may produce unintended blowback in Hormuz, and today’s news of US troop and naval movements add to the burden of already jumpy markets.

Consensus today has S&P downgrading the credit of most of Europe this weekend. Ordinarily downgrades would have no more effect than the downgrade of the US last summer; however, the European rescue funds (EFSF and ESM) are dependent on AAA ratings for contributors, especially France. No bailout funds… dawn of reality.

Greece faded in importance last fall as Italy and Spain came into play. The debt forgiveness that Greece needed seemed trivial by comparison, and nobody would be silly enough to tip the Greek domino by withholding pocket change. Right. Talks broke down today, and default is again imminent. Most exposed: the ECB and its holdings of $150 billion in Greek debt. You want that in 100,000-drachma notes, or 1,000,000?

Time out for ethics in financial leadership. During a sustained effort by the Swiss National Bank (its “Fed”) to weaken the too-strong Swiss franc versus all other currencies, the wife of the SNB Chairman, Philipp Hildebrand, placed long-dollar trades with the family banker, who confirmed the trades with the Chairman. Upon exposure the Chairman attempted a cover-up with that banker, who refused (there are honest bankers). Philipp and Kashya Hildebrand met while working at a US hedge fund (dang, what kids learn in those places!); he has resigned and accepted a $1 million severance.

The largest Italian bank, Unicredit, attempted to raise capital in accordance with suicidal instructions to banks everywhere, and very nearly succeeded. In suicide. Its stock is now wallpaper; a good bet for the first of the nationalization dominoes.

The ECB flooded Europe two weeks ago with $700 billion in liquidity to banks to stop a run. A similar sum has returned to the ECB for safety. Its Chairman, Mario Draghi yesterday said, helpfully, that the returning cash was not from the banks who borrowed. Got it. The banks who borrowed paid back the banks from whom they had previously borrowed, and those banks are not going to loan money to anybody, sending it back to the ECB, where it now sits safely in mayonnaise jars under the ECB’s porch. The ECB stopped the run for a while, but brought no economic or credit relief.

Yields on short-term Danish and German government bills have gone negative. In a phenomenon seen here in the 1930s, and very briefly in the current crisis, investors think it wise to pay 101 kroner or euros for the right to get back 100 ninety days later.

Financial people have been asking each other since last July, “What’s the European endgame? What’s the trigger?” At the moment, it looks as though the whole stack of procrastination, half measures, and self-deception is crumbling at once. But we’re okay.

Progress since summer, but…

Hard to call this progress:

When embarking on a total or partial renovation in your kitchen, one of the most important items is your kitchen sink. This is the workhorse of the kitchen. A bad selection could cause regrets for years and it is not easily changed after countertops have been cut.

Here is a quick review of the options I feel are best for the kitchen:

-Stainless steel is an excellent option and the one I personally prefer but it also depends on the style of your kitchen. It is very durable and it won’t rust, stain, fade, chip or crack. -You want to buy an 18 or 20 gauge stainless and in this case, a lower number is better. 18 gauge is thicker than 20. If it is 18/10, then it has a ration of 18% chrome and 10% nickel. 18/10 will not rust and will maintain its appearance much longer and is thicker. The thicker the gauge, the less apt the sink is to dent, bow or make noise. A good stainless steel sink does acquire some scratches along the way but it results in a nice patina. Also, look for a sink with an undercoating, it will be much quieter.

-Enamel coated cast iron sinks are very attractive and can be ordered in a variety of colors. You do run the risk of chips or cracks over time. They are very heavy and usually require a support if they are being undermounted. Lighter colors can also stain from wine or berries if they are not rinsed out in a timely manner.

A few last tips:

-I would recommend that any sink be undermounted for a cleaner appearance and you will not have grime build up on the lip on top of the counter.

-Many people like the double bowl sinks but make sure one bowl is large enough to clean a roasting pan if you cook a lot.

-Did you know you can clean stainless with a little olive oil on a rag or towel? That way you can avoid using the expensive chemical stainless cleaners.

-Double sinks sometimes come with the option of a custom sized dish rack. Make sure you install the disposal on the opposite side.

By Lorrie Browne