A surprising number of homeownersaren’t taking advantage of “historicallylow” mortgage rates to refinance, saidDiana Olick of CNBC.com. The numberof people refinancing their mortgagesdropped by nearly a third in 2015 inanticipation of the Federal Reserve’sinterest rate hike. But mortgage interestrates actually fell 30 basis points overthe same period, as investors spookedby global economic turmoil rushed tothe safety of government bonds. Right now, 6.7 million homeowners have enough equity in their homes and high enough credit scores to savean average of $3,000 per year on mortgage payments by refinancing,according to analysis by Black KnightData & Analytics.

It’s true for the past few years it hasbeen difficult to “refi” due to the decline in home values. But now withthe return of home appreciation, restructuring your home loan makesfinancial sense. Prime candidates arehomeowners with a mortgage rate over4.5% or buyers who over the past fewyears bought a home with less than a20% down payment.

Homeowners are switching loan programs, combining loans into one fixed lower rate, all while saving thousands of dollars. For those who

have a long term goal of staying in theirhomes, some are moving from anadjustable to a fixed rate mortgage orchanging the terms by taking the old 30-year term and advancing it to a 15-year term. Of course, there arehomeowners that are on the move, and they can refinance into a 3/1, 5/1 or 7/1 adjustable, giving them an exceptionally low interest rate.

This year we are seeing remodelingreturning to 2006 levels. As long ashome appreciation continues to climband interest rates remain at historicallylow levels, why not improve your home’svalue with a new kitchen or bathroom?There are couples who have to resolveproperty issues, particularly those in adivorce. With a refinance, you can simply remove the absent former spouse from the note to achieve thisfinancial settlement.

Refinances can open avenues ofincome. Entrepreneurs have used theirhome to launch into new businesses. Or others have used funds to buy a second home or an investment property.

Sensible financial planning can beachieved by structuring smart financialdecisions through a residential refinance.Please give me a call today to discussyour options.

May Issue 2016

Residential Refinance

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Paul Gauguin managed to get a mere 150 francs for one of his paintings while he was a struggling artist. Jump forward a hundred fiftyplus years and art buffs are clamoring for his When Will You Marry?,which sold last year for $300 million. Marysia Zipser, an aficionado offine art, has been acquiring paintings since the early 80s. Her love ofItalian post-impressionist artwork has been very worthwhile. She states,“Art is still the best investment.” Art has been emerging as a new asset class for the well-diversified

portfolio. The reported returns are enough to catch anyone's eye: Theindex of fine art sales, used by art advisors to sell art funds, shows anaverage annual return of 10% over the past four decades. Will it continue? Georgina Adam, who has spent more than 30 years writing for the art market, predicts a downturn for 2016. But then again, whocares? If you love a painting and it brings joy and happiness to youreveryday life, go ahead and buy it. And if it brings great profits? Well, all the better.

Shown above: DAMERINO, Olio su tela, 40 x 50, 2015by Vito Stramaglia, vitostramaglia.com

Best Siteskayuconnection.com/

best-home-improvements/Read the reviews of expert real

estate agents, interior designers andpotential homebuyers for insight into increasing the value of your home.

hgtv.com/remodel/interior-remodel

Both inviting and inspirational, enjoy the videos featuring real remodels.

thisoldhouse.com/tohIn-depth and “in deep” information

about plumbing, heating, and electricity. Get contractor smart

before you hire one.

�CoreLogic reports a nationwideincrease of 6.8% for home sales

in February 2016. Anand Nallathambi, president and CEO of CoreLogic, says, “Improved economic conditions and tight inventories continue to drive

exceptionally strong sales in manymarkets, especially homes priced

below $500,000.” For a neighborhoodsnapshot, consult your Realtor.

A R T A N D A R C H I T E C T U R E

This newsletter is published for home owners and real estate investors. Please refer to my phone number for my specific opinion on various topics and loan programs. This information is provided for general use only and should not be relied upon in making an investment, tax or legal decision.

Bond Marketing ® 5/2016

� The number of “starter homes” on the market in the 100 largest U.S. citieshas dropped by about 44 percent since2012, according to real estate listing siteTrulia. The lack of supply has driven upprices for modest, entry level homes by104 percent in Oakland, 78 percent inDenver, and 50 percent in Portland. The Washington Post

� Buffeted by volatile markets, morehedge funds closed their doors last yearthan at any time since the 2008 financialcrisis. Some 979 hedge funds closed in2015, up from 864 in 2014. The fourthquarter of 2015 also saw the smallestnumber of new hedge fund openingssince 2009. Financial Times

� The top 1 percent of U.S. earners hadan average income of $1.26 million in2014, down from $1.56 million in 2007, a 19.1 percent drop. The bottom 90 percent saw their average income fall10.7 percent to $33,068 in 2014, downfrom $37,017 in 2007.CNN.com

� Immigrants started more than half ofthe current crop of U.S. based startupsvalued at $1 billion or more, according to a study by National Foundation forAmerican Policy, a nonpartisan think tank. The 44 biggest immigrant startups generated 760 jobs per company.WSJ.com

� Pompoms are back on about everything –shoes, coats, scarves and curtain edges.As the wedding season hits, look for bouquets, boutonnières, flower girls’ headbands and center pieces punctuated by pompoms. Wall Street Journal

Noted

Remodel for the FutureOut for 2016 is some data to boost the value of your home. With

years of reviewing these reports, we would like to emphasize the rulesare applicable to the region of the country you live in. One of the bestsources for home improvements will be a Realtor who knows your neighborhood. If you are going to undertake a major remodel, “build for the future.” There are currently some 40 million folk that are 65 years old and over. By 2040 there are expected to be some 80 millionseniors accounting for 21 percent of the population. Currently, there are approximately 40 million over age 65. A master bedroom with abathroom on the first floor is a highly desired feature anywhere in thecountry. Casitas and granny flats make for great floor plans, and ifvacant, they can provide a steady stream of income as a rental.

For a fresh look and getting your home to shine like no other,Consumer Reports recommends updating the kitchen. New appliances,countertop, flooring and painting will breathe new life into the space. For an updated look, consider the latest spin on stainless steel products.There are versions of black stainless steel offering a softer, less reflective finish but with the same cachet as the original. For counter-tops, Quartz engineered from stone chips, resins and pigments appears to be the new countertop material, alongside granite and marble. Realtor Magazine advises embracing healthy building materials that are more resilient to bad weather. Remodeling for the future meansenjoying your home as you like it, but if you are able, keep in mind the resale return on investment.

In s i g h t s

Investing In Art

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