To refinance or not to refinance? That is the question.

There has been a lot of talk in the news recently about the low mortgage rates and it's true! They are really low! So, if you have been on the fence about buying, low rates are a good reason to get off the fence---but if you already own a home, now may be a good time to think about refinancing.

It's time to think about refinancing your home loan IF:
• rates are 2% + lower than your current rate

• you are paying mortgage insurance and you have 80% equity in your home,

• you’re current loan is an ARM and your term is up and your rate is looking at resetting

And most importantly ---only refinance if you are planning on sticking around in your home for at least 2 years post refi.

Here are some more things to consider when thinking about refinancing:

Four Reasons to Refinance Your Home

There are many situations where refinancing a mortgage is a good decision. It can save your house, save you money, or help you with other financial needs. Read on to learn the four reasons to refinance your home.

1. Avoid Foreclosure with a Refi

If you are on the brink of foreclosure and are desperate to save your home, refinancing may be the answer for you. Whenever you are having trouble paying your mortgage, it is always a good idea to approach your lender and discuss the issue with them. They may be open to helping you through a refi. This can help you lower your current interest rate, lock in a fixed rate, and/or change the length of the loan. This can lower your monthly payments and make your mortgage more affordable, helping you avoid foreclosure. You can also talk with other lenders or mortgage brokers to see if they have programs available for you. The biggest obstacle in this situation is going to be whether you have enough equity in your home. If you do not, you need to talk to your lender and review your options.

2. Changing an ARM to a Fixed Rate Mortgage

Maybe you are not on the brink of foreclosure, but you do have an adjustable rate mortgage (ARM) whose rate is going to increase in the near future, making it harder for you to afford your mortgage. Many people are solving that problem by refinancing their homes to get a fixed rate, so they no longer have to worry about when and how much the rate on their mortgage will increase. This can help you avoid financial trouble before it starts.

3. Saving Money When You Refinance Your Home

Not everyone who refinances a home does it because they are experiencing some sort of financial trouble. Usually, refinancing is an effective way to save money on your monthly payments. For the same reasons that it can help people avoid foreclosure, it can help you save money by lowering the interest rate, lengthening the term of the mortgage, locking in a fixed rate, or paying off other higher-interest rate debt.

4. Getting Money Out of Your Home

Another reason to refinance is to get money out of your house, which is known as a cash-out refinance. This type of refnance allows you to access the equity in your house to use that money for other purposes. Many people do this to pay off other high-interest debts they may have. It is also a very popular choice for finally doing those improvements around the house. Of course, any time you take equity out of your house, you want to make sure you assess any possible risk involved and confirm that you are not putting your house in jeopardy.

Two Reasons Not to Refinance a Home

A refinance is not an easy fix to complicated problems, nor is it an ATM for making unneeded purchases. As with anything relating to mortgages or your house, you need to be smart about a refi and know when it is not the right decision.

1. When a Refinance Does Not Save You Money

Lower rates do not necessarily mean that a refinance will save you money. You need to thoroughly assess the situation and evaluate how much you will save, if anything. It is important to remember that with any mortgage, including the one you are about to refinance, there are always fees involved, such as closing costs. These can add up to several thousand dollars, which can prevent the refinanced loan from saving you money. You also need to consider how long you plan to stay in that specific house. If you plan to move in the near term, a refi may not save you money. Talk to a mortgage professional or trusted financial planner if you are not sure where you stand.

2. Cashing Out for Frivolous Purchases

We all would love to go on a two-week Caribbean vacation or buy the luxury or sports car we have always dreamed of driving, but using a cash-out refi for such purchases is not a very smart choice. Once you get into the habit of using your mortgage as a way to pay for things you can not really afford, you run into the danger of going into debt you cannot handle or losing your home. Using equity for home improvement projects can increase the value of your house. Using equity for luxury purchases saps the value from your home.

Another Crazy MLS photo and by Crazy--- I mean Sad

So, really? Not only does this make me not want to bring a client to this house this makes my stomach hurt.

I sent this over to the mad genius over at my favorite Real Estate blog, Real Estate Rumble and this is what she had to say---I could not have said it better.

News Flash : It's Cold in Austin

I am fighting my second cold of the winter season! What gives? I am generally a one cold per season kind of gal. This Austin weather could have something to do with it. It is really cold for Austin and I love how we kind of collectively go crazy as a city when it gets cold here. We drive weird or refuse to drive at all and we openly complain to anyone that will listen about how cold it is, even though in many other parts of the nation/world folks are resorting to full body sweater wearing as pictured here:

I include myself in the collectively crazy for sure---I mean, as we speak I have on a lot of socks---like multiple pairs of socks and my pantry is stocked in a way that suggests I am expecting company---all because the temperatures have dipped into the 20s. A few days ago we had a little snow. In the time that it took me to contract my second cold of the season, it had melted. This is the type of snow we are more familiar with:

Soon enough it will be so hot that we won't even be able to remember the wonder of Wintertastrophe 2011. So, drip your faucets and make some soup and wear that crazy scarf I knitted you that one year when I was knitting A LOT because I had just quit smoking---and try to enjoy the wonder that is winter in Austin.

Tupac vs. the MLS

Another great interior photo from a property listed in the MLS. We have Tupac on one wall and if you look closely at the right wall, I think that's Biggie in the photo over the T.V.

I like to think that this room's inhabitant is in their own small way trying to ease Biggie and Tupac towards some type of afterlife reconciliation.

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Knock Knock. Who's There? The Holidays.

The holidays are upon us. I feel more like the holidays are UP ON me, but semantics schmantics. I am not a holiday hater, but I have also never been one of those people that gets really into decorating or sets up a gift wrapping station in the guest bedroom. This year I did put up some little trees. Both artificial and one is black, so take from that what you will.

I know this is not a new or original sentiment, but my main "issue" with the holidays is that the year-round consumer culture that is so prevalent in America, is greatly magnified during the holidays. In year's past, I have participated in Buy Nothing Christmas and made gifts for friends and family. This year has been pretty busy and I can already tell that my approach to my holiday gift giving is going to be less handmade than in year's past. That got me to thinking about ways to shop locally and support the efforts of local artists, craftspeople and really, any business/person doing something unique or socially relevant. I have come up with a few recommendations that I think are worth sharing. If you have any ideas that you would like to share, PLEASE post them in the comments.
     

Places to Shop

• Blue Genie Art Bazaar  has been around awhile and now over 300 artists have their wares on display. Lots of variety. I got a small painting of a cupcake here once and it was a big hit with the recepient---who loves cupcakes.
• Community Renaissance Market   I just read about this place recently in my neighborhood newspaper. The concept is that this place is a "microbusiness incubator for people who want to start a business, but don't have a great deal of money to do so". It is located in what used to be the Albertson's on Westgate.  So, not only are they working to help small business, but they are making use of a space that sat unused for MONTHS! Also, this was started by a lady. Go lady business!
• Cherrywood Art Fair  will have work by 80 artists and a portion of the proceeds go to beautifaction projects in East Austin.
  
  Giving the Experiential Gift

• Check out Not That Martha. Local lovely, Martha Pincoffs is writing about food, catering it up and also teaching cooking classes! Cooking classes would be a fun group gift type deal. I can speak from experience...this girl can cook and she is super cool and fun to be around.
• The Alamo Drafthouse is running a deal right now where if you buy $100 in gift cards, you get a $20 credit for yourself. Be a hero to that film geek on your list that loves to quote along to Roadhouse and drink $5 milkshakes.
• Farmhouse Delivery offers local produce, meat, dairy, eggs and local artisinal products to customers in Austin. They will deliver to your house or office. Sustainability on your doorstep AND they are another lady owned and operated business! 

Charitable Gift Giving

• HAAM (Health Alliance for Austin Musicians) is an organization that helps uninsured musicians in our area obtain affordable healthcare. Their affililate the SIMS Foundation also does great work for the working musician community. We all love to hear live music, and by donating to HAAM/SIMS you can prove it!
• Since 1974 SafePlace has been working to eliminate sexual and domestic violence. They provide services for men, women and children. SafePlace often needs volunteers as well---so there are multiple ways to give!
• Communitites in Schools work to keep kids in school AT school. They work directly within the public school system to teach life skills and to provide alternatives to dropping out. They are also looking for volunteers and mentors in addition to donations.

We can define the holidays and gift giving on our own terms by opting out of the consumer frenzy that is all too common for many during this time of year and in doing so hopefully set good examples for our kids and our friends and our families.

Again, if anyone reading this has suggestions for unique gift giving, please share!

That would never happen on House Hunters!

I don't have cable. I have access to it sometimes, but even when I do I have to admit I am not compelled to watch reality shows about folks trying to buy, remodel or redesign houses. I love my job and I spend a lot of time doing my job, so when it comes to "down time" I like to try to get a bit of a break from the business.

That said, I am familiar with the format of  TV shows like "House Hunters" and I had an experience this week and thought to myself---"Why don't you ever see this on a reality Real Estate TV show?"--To be fair I have had that thought before.

Often when I am taking buyers to view properties, the properties for sale will have alarm systems. Most of the time you will, prior to your visit, get the needed instructions for how to disarm and arm these alarm systems. Sometimes even when you have done all of that, something will have changed and that alarm will go off--- LOUDLY and repeatedly and you look like kind of an ass and your poor client(s) are under assault by the sound as they try to check the place out.

This happened to me this week and after multiple phone calls and failed attempts at disarming the alarm system, we went through the property and did our best. I already knew that these particular clients were really great, but I now know that they are also very cool under pressure and would probably do very well in a war zone---good people to know.

Does this ever happen on "House Hunters"? Hell no. Here is another list of things that I am guessing never happen on "House Hunters".

1. Realtor attacked by dogs/cats/rabid children

2. Realtor has gun pointed at her as she is asked to leave.

3. Realtor walks in on a naked guy.

4. Realtor narrowly avoids being stung by hornets INSIDE the house.

5. Realtor stumbles upon grow room.

The only thing on this list that has NOT happened to me is that I have not yet encountered any rabid children, but the day is not over!

Again, I love being a Realtor in Austin and I am rarely bored.  I do wonder if there would be a market for a reality show that portrays what I know to be the true nature of working in this business---if so, sign me up!

PS: It is worth noting that in the 15 minutes we were at the property with the alarm screaming-- the cops did not show up.

Fun Fun Fun Fest 2010: The year Brandi is reminded of her age and her mortality

Fun Fun Fun Fest 2010 was the fifth year of a music festival that we are so lucky to have in Austin. It has a markedly more DIY (in the best way possible) and less corporate feel than the better known ACL music festival and the programming is more punk rock centric (hip hop, indie, metal and electronic music are also well represented). This year along with great acts like The Gories, Strike Anywhere, The Hold Steady, OFF!, Peelander Z, "Weird Al" Yankovic, The Bronx, Bad Religion, Deerhunter, The Casualties and The Dwarves---the Descendents were booked as a last minute replacement for Devo (who are also so GREAT) because they had to cancel due to a band member's injury.

The Descendents are a band that I loved as a young Brandi and still love as an older Brandi. My love affair with punk rock started around my 14th birthday and has waxed and waned over the years, but it is a genre of music I hope I will always have in the mix. It is rare that a band's music endures for me over really long periods of time. Not to imply that I am fickle, it's just that as we change and stuff happens/is happening in our lives certain music may speak to us more at one time than another. The Descendents wrote songs about food and girls and coffee mugs and not wanting to grow up and turn into boring jerks. They wrote songs about being yourself and questioning authority.

I may know myself better now than I did when I was 14, but I still sometimes have a hard time being myself and I am self employed primarily because I don't like being told what to do. I also really like food.

So, here's where I get to the part about being reminded of my age and my mortality. Because this was possibly going to be my only chance to see the Descendents play live I decided I needed to be near the front of the stage for the show. This is something younger Brandi would have done and therefore older Brandi--having been very in touch with younger Brandi over the past 48 hours---did and the result was the opposite of cool. The minute the Descendents started playing the crowd crush was dramatic to say the least, and I quickly found my feet literally off the ground (and I am really tall) as my body became not my own as it was absorbed into a mass of movement. The feeling was one of total lack of control and since I was pressed between what felt like 1000 lbs of weight I could not get the space or leverage to throw an elbow as I so jubilantly recall doing in my younger years. I realize now that when I was going to shows as a teenager I was often one of maybe 50-100 people in the crowd and that's totally easy to maneuver ---Sunday night was not easy to maneuver and along with not really being able to focus on the show, I was about to lose it if I did not get out of there. It is also worth mentioning it smelled really bad---really, really bad, which was weird because there was so much dust in my nose and it was not very hot outside.  I was able to grab the boyfriend just long enough to yell in his ear that I was getting out of there and that I wished him luck and good fortune.  Amazingly, once my mind was made up I successfully escaped the crush of the crowd pretty quickly and found a very civilized spot with a great view and proceeded to have my mind blown by one of the most fun shows I have seen in a long time. The boyfriend also escaped unscathed.

The crowd that would later crush me

Descendents at FFF

The whole FFF weekend was really great and even though I was reminded of my age and my mortality---that's ok. Sometimes I need reminding.