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More people now protecting assets with long-term care insurance

With people living longer today, the continually rising cost of health care and the rate of inflation, long-term care is quickly becoming a national concern.
"Failure to understand the options that are available can place undue financial, physical and emotional burden on individuals and their families," said René McKee, vice president of marketing for California Coast Credit Union, explaining how long-term care insurance is one financial product that is receiving more and more attention these days.
The changes that have taken place in American society are further contributing to the dilemma. The increase in dual-career families, job insecurity, family mobility and a high divorce rate all can prevent adult children from being in a position to care for their aging parents. In addition, the uncertainty over the availability of Social Security and health care benefits for seniors through Medicare and Medicaid only add to the concern.
Recent studies have revealed several noteworthy statistics on long-term care. Family caregivers currently provide approximately 80 percent of long-term care while nursing homes and assisted living facilities provide only 20 percent. A surprising 75 percent of all Americans over 40 will be diagnosed with a critical illness over the next 30 years and 60 percent of all Americans are expected to need long-term care at some point in their lives. Reflecting the debilitating effect that the current trend of steadily rising health care costs can have on an individual's finances, about half of all nursing home residents today exhaust their resources to pay for care, which is currently estimated at approximately $70,000 annually, an amount that is expected to increase in the future due to inflation, according to the Mature Market Institute 2004 Survey of Nursing Home and Health Care Costs.
"We are acutely aware of the growing magnitude of the long-term care situation in this country and recognize the importance of taking substantive steps to address it," McKee said. "California Coast Credit Union has made a commitment to help members plan for the years ahead by providing long-term care insurance and educating them about the need for long-term care coverage and how it can protect their financial livelihoods."
Those who may think long-term care insurance is covered under their regular health insurance plans will find themselves sadly mistaken.
McKee says long-term care policies generally pay up to a specific dollar amount for covered services per day and reimburse policyholders for expenses incurred. Policies typically cover skilled nursing care either in an approved facility or at home, and also include therapies, personal care, custodial care and homemaker services.
Annual premiums, which usually remain fixed throughout the life of the policy, can range from a few hundred to several thousand dollars, depending upon age, waiting periods, and duration and amount of benefits. Many policies offer inflation-adjusted features that increase per diem benefits to cover higher costs.
Generally speaking, the older a person is when a policy is purchased, the higher the premium will be.
"A long-term care policy purchased by someone in their early 50s may be fairly inexpensive compared to one purchased by an individual in their late 60s," she said.
McKee adds that there are plenty of compelling reasons why individuals should look into the benefits of long-term care insurance and why it's needed.
"For the most part, people want to avoid dependency on their children and others for their care and don't want to be a burden on their spouses or families," she said. "They also want to preserve their independence, avoid welfare and don't want to deplete what took a lifetime to accumulate. They want to protect their assets for their own lifestyles and be able to leave an estate for their heirs."
While we can't foresee the future by utilizing the information and knowledge accumulated about long-term care, we can take steps to become better prepared for it.
"Our advice to our members and to everyone in the general public is to seriously consider it today while they are still healthy and are able to qualify," she said. "By the time many people realize they need long term care insurance, it's often too late and cost prohibitive."

By RICHARD M. BARRETT, Special to The Daily Transcript Thursday, October 12, 2006
Barrett is a staff writer at the Beck Ellman Heald agency.

Sales of La Jolla During the Month of August-Please save to your desktop in order to view at 100%. Thank you.

Reasons to buy now!

*More purchasing power

*Lenders have liberal underwriting guidelines allowing low credit scores;
No income documentation; 100% financing)

*Avoid rent increases- In a tight rental market landlords have the capacity to increase rental rates higher and more often

*Tax benefits

*Creating wealth- Your house is almost certain to rise in value simply because of inflation. Prices might fall or stagnate at some point, but over a long stretch of time, home ownership creates wealth over time even if you buy at the top of the market

*Pride of ownership

*Suit your lifestyle- down-size or upscale to get the amenities and features that suite your lifestyle!

Mortgage News Commentary

Treasury prices fell Friday after a monthly employment report came in slightly above expectations, ending four straight months of weak job growth. The Labor Dept. said employers added 128,000 jobs in August, up from 121,000 in July. Economists had forecast a gain of 125,000 jobs in the period. There are some technical indicators that may suggest rates are in a bottoming phase, but yields may break lower on any poor or less than expected economic news. Poor economic news translates into supporting the Fed's efforts in containing inflation and a continuance of the neutral or hold position from increasing rates. This has produced lower mortgage rates the past 2 months. There is only a small chance the Fed will increase rates at the next meeting. The markets will be closing early today and will be closed on Monday for Labor Day. Technical indicators may favor locking, since we are at the lows in yields. However, the market and news indicators are neutral. The down trend cycle in yields has still not been broken, but any better than expected news in the coming weeks may reverse the trend and send rates higher. Conversely, bad news may send rates even lower, breaking into a new range and extending this current rate cycle.Rates are: Flat; Rate Volatility; LowLong Term (4-6 weeks) Down; Short Term (1-2 weeks); Flat

Market Leveling, But Still Strong-Please save to your desktop in order to view at 100%. Thank you.

SELLERS FINANCIAL RESPONSIBILITIES

SELLERS FINANCIAL RESPONSIBILITIES
Selling Your Home: Costs and Fees
The process of selling your home involves several costs and fees. The following information is very general. Many of these items can be negotiated with the buyer. Consult your real estate professional for details.
Real estate commission
Document preparation fee for deed
Documentary transfer tax
Any city transfer/conveyance tax (according to contract)
Any loan fees required by buyer's lender
Payoff of all loans in seller's name (or existing loan balance if being assumed by buyer)
Interest accrued to lender being paid off, statement fees, reconveyance fees and any prepayment penalties.
Termite inspection (according to contract)
Termite work (according to contract)
Home warranty (according to contract)
Any judgments, tax liens, etc., against the seller
Tax proration (for any taxes unpaid at time of transfer of title)
Any unpaid homeowner's dues
Recording charges to clear all documents of record against seller
Any bonds or assessments (according to contract)
Any and all delinquent taxes
Notary fees
Escrow fees (according to contract)
Title insurance premium (according to contract)
*Chicago Title.com

SELLERS - WHAT TO EXPECT WHEN SELLING YOUR HOME

SELLERS - WHAT TO EXPECT WHEN SELLING YOUR HOME
You should select a professional real estate agent to represent your needs. Once you establish a working relationship with your agent, your home is put on the market and marketed to potential buyers. Once a buyer makes an offer on your home you have three options: accept the offer, counter the offer, or reject the offer. After you accept an offer you can expect to do the following:
Escrow is opened and buyer deposits "earnest money" into escrow.
Seller submits documents and information to escrow holder, such as: - addresses of lien holders- tax receipts- equipment warranties- home warranty contracts (if any)- any leases and/or rental agreements.
Seller approves and signs the escrow instructions, grant deed and other related documents required to complete the transaction.
Seller orders inspections, receives clearances and approves final reports and/or repairs to the property as required by the terms of the purchase and sale agreement (responsibility for inspection procedures may vary).
Buyer and Seller fulfill any remaining conditions specified in the contract and/or escrow instructions; approves the pay off demands and/or beneficiary's statements.
Buyer and Seller approve any final changes by signing amendments to the escrow instructions or contract. Note: The above is general information only. Your situation may differ. Please consult your real estate professional for details about your specific situation.
*Chicagotitle.com

WHAT TO EXPECT IN A RESIDENTIAL TRANSACTION

WHAT TO EXPECT IN A RESIDENTIAL TRANSACTION
Buying a home involves several stages. Below is a list of the more common steps during a residential transaction.
Your situation may vary and it is best to contact your real estate professional for more information.
Common Steps for Buying a Home
Initial Meeting
Select real estate agent
Determine needs and wants
Determine financial eligibility
Loan Qualification
Discuss finances
Obtain prequalification
Find a Home
Select an affordable property that fits your needs
Discuss offer with agent
Buyer reviews contract with agent
Agent presents offer to selling side
Present and Negotiate Offer
Buyer prepares "earnest money" deposit (typically, 1 to 3% of purchase price)
Seller accepts offer (Seller can accept your offer, counter your offer, or reject your offer)
Open Escrow
Deposit "earnest money" into escrow
Escrow will order Preliminary Report
Submit Loan Application
Contingency Period
Conduct Physical Inspection of property by a qualified inspector
Approve seller's Transfer Disclosure Statement
Approve Preliminary Report
Conduct property appraisal
Obtain loan approval from lender
Perform termite inspection and certification
Obtain Homeowner's Insurance
Select insurance company and coverage
Insurance will be in effect at close of escrow
If applicable, obtain Home Warranty insurance
Sign Documents
Chicago Title receives signed documents
Down Payment
Need cashier's check or money transfer prior to closing date
Closing the Escrow
Deposit down payment and closing costs to escrow
Lender sends balance of purchase price to Chicago Title
Deed is recorded with County Recorder's office
Get your keys and move in!
*Chicagotitle.com

BUYER'S FINANCIAL RESPONSIBILITIES

BUYER'S FINANCIAL RESPONSIBILITIES
Purchasing Your Home: Costs and Fees
There are various costs and fees involved in purchasing a home. The following list depicts an example of the costs you may be responsible for. Keep in mind that responsibility for some of these charges can be negotiable and the responsible party may vary from area to area. Ask your real estate agent about applicable costs in your area.
Title insurance premium (according to contract)
Escrow fees (according to contract)
Document preparation (if applicable)
Notary fees
Recording charges for all documents in buyer's names
Termite inspection (according to contract)
Tax proration (from date of acquisition)
Homeowner's transfer fee
All new loan charges (except those required by lender for seller to pay)
Interest on new loan from date of funding to 30 days prior to first payment date
Assumption/change of records fees for takeover of existing loan (if applicable)
Beneficiary statement fee for assumption of existing loan
Inspection fees (roofing, property inspection, geological, etc.)
Home warranty (according to contract)
City transfer/conveyance tax (according to contract)
Fire insurance premium for first year
*Chicagotitle.com

NEIGHBORHOOD TIPS

NEIGHBORHOOD TIPS
Keep Your Children Safe in Their New Environment
Educate Your ChildrenEncourage your children to memorize their new address and phone number prior to the move. Make sure you practice with them every opportunity you have and reward them. Visit their new school the day before their first day to familiarize them. As a result, they will feel more comfortable on their first day.
Become Familiar with the AreaIt is important to familiarize your children with surrounding streets, stores, parks, playgrounds etc. Walk through the neighborhood to show them acceptable routes they are allowed to travel and acceptable places they may visit, such as a park or a playground. To help them learn quickly, practice the name of the streets and pick a landmark to associate the street with. Discourage your children from taking shortcuts. Encourage them to always stay on the main roads. Finally, establish a safe place or person they can go to for help in case you are not available to assist them.
Meet the NeighborsIntroduce yourself and your kids to the new neighbors. By doing this, you establish a favorable beginning relationship and create the opportunity of introducing your kids to their kids.
Instruct Your Children to Check FirstYour kids will most likely make friends in the area. Instruct them to ask permission before they go anywhere with their new friends, including in their homes.
Establish an Emergency PlanCreate a list of emergency phone numbers and place in a designated area. Include emergency numbers such as fire, police, poison control, hospital, etc. Also create a list of your pager, work, and cellular phone numbers. Designate two other people to contact for help if your children cannot contact you.
Reinforce "Home Alone" RulesYour kids should never open the door for someone you don't know, whether or not you are home. In addition, they should make sure that all doors and windows remain locked.
If a stranger should telephone and ask for personal information, warn your children against revealing any personal information. Instruct them to tell the caller you are not available and take a message.
Reinforce the RulesYour children will follow these rules if they are reminded on a regular basis.
Walk the neighborhood with your kids now and then.
Have them recite and spell their name, address and phone number a few times a week.
Have them point out the location of emergency numbers.
As long as these rules are adhered to, your family will enjoy a safe and comfortable environment!
*Chicagotitle.com

What is the Annual Percentage Rate (APR)?

What is the Annual Percentage Rate (APR)?
The true cost of financing is not easy for consumers to determine. One of the difficulties of shopping for a loan is that financing costs include more than just the interest over the term of the loan. The Annual Percentage Rate or APR was designed to make it easier to compare loans by providing a single comprehensive measure of the true cost of credit over the life of the loan. Lenders are required by law to report this rate under the Truth-in-Lending regulations.
The Annual Percentage Rate is calculated by taking into account the interest rate (the actual note rate), the "points" which are based on a percentage of the loan amount, and other cash charges such as credit report fees which are a fixed dollar amount regardless of the size of the loan. The APR is also adjusted for the time value of money, so that money paid by the borrower up front carries a heavier weight than dollars paid ten years into the term of the loan. The problem with this formula is that most borrowers pay off their loans before the end of the loan term by refinancing or selling the property. This makes the APR calculation somewhat deceptive for borrowers with shorter timelines.
As a general guideline, if you believe you will be in your home for at least ten years, the APR may be a more useful tool to use in comparing loan costs. Otherwise, you might want to focus on the interest rate and the upfront cash fees you will be required to pay at that rate. With the fixed rate loan, the best deal is probably the one carrying the lowest total fees, but other terms of the loan can also be important factors in your decision. Your mortgage broker or real estate agent is qualified to assist you in finding the financing package which will work best for you. Consult your real estate professional for advice about your specific needs.

Listing and Sales Comparisons in La Jolla-Please save to your desktop in order to view at 100%. Thank you.

Spring 2006 Roundup and Review in La Jolla-Please save to your desktop in order to view at 100%. Thank you.

Top 10 Most Commonly Overlooked Real Estate Tax Deductions-Please save to your desktop in order to view at 100%. Thank you.

Home prices rise, but sales keep cooling

Tight lending, higher rates are catalysts in slowdownBy Roger M. Showley and Emmet PierceUNION-TRIBUNE STAFF WRITERS
March 14, 2006
San Diego County home prices bounced back above $500,000 in February, but sales continued to slow as rising interest rates put pressure on buyers stretching to get into their first home.
DataQuick Information Systems reported yesterday that the median sales price last month was $502,000, up $12,000 from January and 6.4 percent higher than a year ago.
Lori Ellen Coven of Ranch & Sea Realty said the price numbers underscore her suspicions: “Things haven't slowed down as much as people are perceiving.”
The latest figure represented a partial turnaround from a sharp drop in January, when the median price tumbled by $26,000 or 5 percent, the highest month-over-month percentage drop in nearly three years.
Amid the gain in overall prices, the volume of sales in February declined for the 20th straight month, logging 2,865 transactions, down 16.8 percent from a year earlier.
The San Diego Association of Realtors said unsold listings stand at their highest level in eight years of record keeping. It's taking an average of 68 days to sell a single-family home, up from 59 days a year ago.
The slowdown comes as lenders have become more cautious and as mortgage interest rates head up.
Freddie Mac reported that the average 30-year, fix-rate mortgage rose last week to 6.37 percent, the highest level in more than two years. A year ago, the rate stood at 5.85 percent.
Adjustable-rate mortgages, or ARMs, that are tied to Treasury interest rates and designed to adjust after five years, averaged 6.03 percent, compared to 5.22 percent a year ago, Freddie Mac said.
Nicolas Retsinas, director of Harvard University's Joint Center for Housing Studies, said the liberal lending practices of recent years have placed millions of U.S. households at risk of payment shock when ARM rates rise over the next two years.
During periods of rapid price appreciation, gains in home equity “cover lots of sins, even the sin of taking out a not very good mortgage,” he said.
But DataQuick analyst John Karevoll said San Diego home buyers have already backed off from their use of ARMs.
In November 2004 about 83 percent of buyers in San Diego County chose adjustable-rate mortgages. That marked the peak in a database that goes back to 1988, he said.
By November 2005 the figure had dropped to about 73 percent. In January, the most recent month tallied, about 54 percent of buyers used adjustables in their purchases.
Mortgage broker Ed Smith, Jr. of Plaza Financial Group in San Diego said a “guidance” issued to lenders in late 2005 by federal regulators helped reduce the use of some of the riskier adjustable products, such as option or flex-payment ARMs. Those products allow the borrower to decide how much to pay each month – a fully amortized payment, the interest only or minimum payments that don't cover interest.
With sales and home-appreciation rates slowing, “you have to be more prudent in who you make these loans to, if at all,” Smith said.
G.U. Krueger, an Irvine-based economist who specializes in housing issues, said he has observed a subtle trend toward more conservative lending in recent months. “On the edges you see some toughening of the underwriting.”
As the pace of sales slows, Gary Wong, senior vice president of Union Bank of California for the San Diego region, sees growing opportunities for home buyers.
Dataquick's Karevoll advised against reading anything into the January or February sales pace and prices.
“Once we have March figures, we'll have a much better indication of what's going on,” Karevoll said.
Still, he said, the numbers portend nothing that could be construed as a major drop in prices – “These are not doomsday numbers by any means.”
Instead, Karevoll offered a “Three Bears” analogy – things are not too hot or too cold. “It's kind of the middle-porridge temperature.”
Jim Scott of Scott and Quinn Real Estate in Mission Hills likened the market to a middle-school dance.
“All the boys are on one side of the gym and all the girls are on the other and they really want to dance but nobody's going out in the middle of the floor,” he said.
On the seller side, Scott said most of his clients have “dug in their heels” and are resisting his recommendation to lower their asking prices by 5 percent or 6 percent after a month of no offers.
The buyers are also remaining “pretty tough” and afraid to deal, thinking prices might drop some more.
“I think they're being way too cautious,” he said. “There are a lot of good deals out there.”
Scott's base ZIP code, 92103, encompassing Mission Hills, Hillcrest and Bankers Hill, is a case in point. It was one of eight ZIP codes in the county where median home prices dropped by more than 10 percent in February from year-ago levels. The median last year was $975,000 on 10 single-family resale houses and last month, $715,000 on 13 transactions.
At the opposite end of the market, 27 ZIP codes saw resale single-family prices rise by 10 percent or more on a year-over-year basis.
One of the largest increases occurred in southwestern Carlsbad, 92011, where the median on 18 single-family resales was $699,500 in February 2005 and $897,500 last month, a 28.3 percent boost, also on 18 resales.
Charles Jolly, president of the San Diego Association of Realtors, said he detects only one area where a real estate bubble of overheated prices may pop: downtown San Diego. There were 616 resale condominiums on the market as of yesterday, perhaps a record level, according to Realtor.com, Jolly's national association's Web site.
“I hear a lot of chatter about downtown,” Jolly said. “But I see that as a great buyer's opportunity. You can pick up something at a reasonable price to live downtown.”
With interest rates rising, Jolly said buyers should offset higher costs by offering lower prices to sellers.
Gary Kent, who operates a ReMax Associates office in La Jolla, said those who bought condos in the last two years will have a hard time selling their homes for as much as they paid.
“They're ready to move up and the value of their condo hasn't moved up,” he said.
DataQuick said the median condo resale went for $395,000 last month, not much different from the $390,000 reported a year ago.
Kent said condo buyers might be wise to jump in now while the market is slow.
“The idea is contrarian investing: The best time to buy is when there are not a lot of people buying, which is now,” he said.

Distinguished Speakers Series

Mike Aguirre Next Up for Distinguished Speakers Series

Thursday, May 4th, Cher Conner and Heidi Dorman host their sixth Distinguished Speakers Series luncheon to present City Attorney, Mike Aguirre. He will speak about the issues facing San Diego and answer questions. With the financial crisis at San Diego City Hall, Mike Aguirre stepped up to get to the heart of the problems downtown. This has not been without controversy, in fact it is difficult to pick up the newspaper and not see his name on the front page. A graduate of UC Berkeley Bolt School of Law, Mike has founded his career on the ideology of social justice. His career spans 30 years as a federal prosecutor, fraud victim trial attorney, municipal law expert, and U.S. Senate investigator and public interest lawyer. Aguirre was also involved in the redistricting of the San Diego School District, which facilitated more fair representation of Latina/o communities.
The Distinguished Speaker Series will be presented at the La Jolla Country Club at 11:30 am on Thursday, May 4th. Cher Conner and Heidi Dorman founded the Distinguished Speaker Series as a service to citizens of La Jolla to offer education, community and fun. If you would like more information or would like to make reservations, please call Cher Conner at 858-361-8714 or Heidi Dorman at 858-449-8015.
Cher Conner is a Fine Homes Specialist and a Seniors Real Estate Specialist. She has been a Top Producing Broker specializing in San Diego Coastal properties for 30 years. Heidi Dorman is also a Broker and Seniors Real Estate Specialist. She is highly regarded professionally.