Paying Down Mortgage vs Investing Your Money

You've got a little extra cash coming in…do you invest it, or would it be smarter to pay extra on your mortgage? 

Let's find out: simple answers to complex questions are in this video (runs 1:28)

Tell us what you think.  Are you better off paying down the mortgage, or investing those same dollars?  Use the comment link below to give us your feedback.

Rebates: What You Need to Know

Lawmakers have given their final seal of approval to a $170 billion plan intended to spark the slowing economy.  The centerpiece?  Tax Rebates.

Questions abound about how the program will work, and officials at the Treasury Department and IRS are scurrying to work out the details, but for the time being, here are some answers based on currently available government information and experts' analysis.

To be eligible for a full rebate, single tax filers must have 2007 adjusted gross income (AGI) below $75,000 and joint filers must have AGI below $150,000.

Single filers with AGI below $75,000 will get rebates of as much as $600. Couples with AGI below $150,000 will receive rebates of up to $1,200.

In addition, parents will also receive $300 rebates per dependent child; there is no cap on the number of children eligible.

Tax filers who don't owe income taxes because of various credits and deductions but have at least $3,000 in income - which can include Social Security and disability payments - will get $300 rebates per person or $600 per couple.

Your rebate is a one-time tax cut - an advance on a credit you'll receive on your 2008 return.

Treasury Secretary Henry Paulson has said the IRS will start sending out checks in early May.  Previously, he said it should take about 10 weeks to crank out all the checks.  In all likelihood then, you'll see the money sometime between May and early July.

That assumes, of course, that you hit the IRS deadline and file by April 15.  If you're a laggard and have to file for an extension, you'll still get a check but it may not come until the end of the year - probably in time for Christmas shopping.

Real Estate Foreclosure Scam Artist

Although this story centers around a scam artist in Southern California, be aware… scams like this are happening everywhere, not just in Southern California.

Los Angeles CBS reporter David Goldstein offers help in this video on convicted felon Raul Altamirano.  This video runs 4:28 but is well worth your time to see how you can prevent such scam artists from duping you, and just how low some scum bags will stoop to take advantage of people going through a tough time financially.

Tell us what you think about this report.  We'd love to hear your comment by using the "comment" link below.

Remodeling Your Insurance After Remodeling Your Home

The benefits of renovating your home make the expense an intelligent investment, but protecting that investment is paramount.  That’s why you should consider remodeling your homeowners insurance as well.

Renovations often result in homeowners insurance coverage shortfalls in two areas: dwelling protection—which involves structural improvements to your home—and personal property protection.  Built-in enhancements such as new windows, doors, custom cabinets, granite countertops, bars, islands, and flooring need to be brought to the attention of your insurance agent.  You also should discuss any major personal property purchases, including appliances, furnishings, and decorator curtains and blinds.

When insuring personal property—especially appliances and electronics—check to see that your policy covers replacement value of your property, rather than the actual cash value.  The actual cash value consists of the replacement cost of an item less the amount it may have depreciated.  Appliances and electronics depreciate quickly.  The amount your homeowners insurance will pay for a depreciated item usually is not enough to replace it with a new one.  Unless you enjoy cruising the thrift stores, you should opt for replacement value.  That way you can shop at Circuit City instead of the Salvation Army.

Keeping your homeowners insurance agent in the loop is a good practice in general, but a major remodel should prompt an immediate conversation.  If something happens tomorrow, you want to make sure your homeowner’s insurance will replace what you have today—not what you had yesterday.

A Quick Home Inspection Checklist

With home prices dropping in many areas, home inspectors are finding more and more homes which are less maintained today than they were in the past.  Home buyers are cautioned to keep this in mind when searching for a home, and use this quick home inspection list as a reference when looking at property:

EXTERIOR
Check the operation of the windows and screens?
Has water been stopped from accumulating near the building?
Check doors, decks, siding, windows & fences for damage / deterioration?
Are there any signs of water infiltration from the roof, siding or windows?
Are there any signs of gutter or downspout problems?
Are the downspouts discharging water away from the foundation?
Has the soil around the home been pitched away from the foundation?

INTERIOR
Have all the areas listed in the home inspection report as inaccessible or not traversed been accessed & professionally inspected to determine if defects exist?
Do the garage doors and their openers function?
Was the reversing devices for the garage door openers tested?
Did you find out why any stains or cracks on any of the walls or ceilings that have become larger or have appeared since the time of the home inspection?    
Have all cracked windows or mirrors been repaired?
Have all the clouded double pane windows been replaced?
Are all the permanently installed fixtures or appliances been in place and in good condition?
Are there any signs of birds, rodents or animals?
Has any damage to damage to the walls, floor or ceilings been repaired?

PLUMBING
Do the plumbing fixture faucets leak or drip?
Are the plumbing fixtures chipped or damaged?
Was water for a time through all plumbing fixtures and check for leakage?    
Was water for a time through all plumbing fixtures and check for stoppage?

ELECTRICAL
Are all the light fixtures are all in place?
Do the light fixtures, switches and receptacles all function?
Does the door bell work?

HEATING AND COOLING
Do the thermostat, heating and cooling systems function?
Is there adequate air flow through the heating and cooling registers?
Did all the radiators or convectors get warm in a reasonable amount of time?

KITCHEN
Do all the appliances function properly?
Are the counter tops or cabinets damaged?
Do the cabinets and drawers operate?

In the end, remember, never buy a home without having a professional home inspector review things under the microscope.