Tehachapi's Online Community News & Entertainment Guide
Tehachapi's Online Community News & Entertainment Guide
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Mortgage rates have been a central concern for homeowners, prospective buyers and investors alike. Over the past few years, predictions of lower mortgage rates have often missed the markespite various economic forecasts anticipating a decrease, mortgage rates have stubbornly remained high. This article delves into the reasons behind this trend, examining the persistent factors driving mortgage rates and why the anticipated decline hasn't occurred. Persistent Inflation Pressures One of the...
I know I'm a nag. I nag because it's so important to plan now for your family when you die. It's not that we plan to fail, we fail to plan. So what happens to your children when they inherit the family home that is in a trust? A step-up in basis resets the cost basis of an inherited asset to its market value on the decedent's date of death. Example: Dad dies and has a house that is owned by a revocable trust. He bought the house for $100,000 in 1970 and transferred it to his trust. Dad died in 2...
Your most valuable asset may be your ability to earn an income. Over the course of your lifetime, you could earn several million dollars - money that helps support you and your family. If something happened to you, how would your family replace your lost income? Life insurance can help replace your income when needed at your death. However, with the wide variety of policies available, it's important that you understand some of the basic types of life insurance coverage. Term Life Insurance With...
Soon a new rule will take effect that will dramatically change the way the Social Security Administration (the "Administration") looks at disability for certain individuals. These changes will reduce the burden on individuals applying for disability by allowing them to focus on the most current and relevant information about their past work. What does this mean exactly? Well, the Administration has long held that if an individual is capable of their past work, they are not disabled for work...
Mortgage down payment assistance programs in California are designed to help first-time homebuyers or low- to moderate-income buyers afford a home. These programs can significantly reduce the financial barriers to homeownership by providing grants, low-interest loans or forgivable loans to cover some or all of the down payment and sometimes closing costs. Here's an overview of how these programs work and why you might consider using them: Types of Down Payment Assistance Grants: Some programs of...
It's election season again. Over the next several months, you're bound to hear an array of promises from the candidates and speculation from the pundits on what those promises, if enacted, could mean for the country. But, how might these possible outcomes affect your financial future? When considering this question, keep these points in mind: • Campaign promises aren't always kept. Presidential candidates often proclaim that they intend to institute major changes in tax or spending policies, o...
If you're presented with an opportunity for your small business, but don't have the cash on hand, you're likely wondering if it's a good idea to get a loan. However, you may be hesitant because the process seems daunting or you're unsure if it makes sense financially. You might be surprised that taking on some debt can actually be the best choice for your business, allowing you to operate more profitably. Reason 1: To expand your business Whether you're moving to a larger office, opening a new...
After the decrease in home prices during the financial crisis of 2008, a gradual increase in home values was seen across all regions. Since we saw a great increase in home prices during 2020-22, due to the pandemic, some stabilization has occurred with some minor fluctuations in home prices. Currently, property values are up 6.5% in the past year whereas during the pandemic, home prices rose 20% per year. In the month of May, 61 homes sold compared to 56 in April. The average sale price in May...
Traditional economic models are based on the premise that people make rational decisions to maximize economic and financial benefits. In reality, most humans don't make decisions like robots. While logic does guide us, feelings and emotions - such as fear, excitement, and a desire to be part of the "in" crowd - are also at work. In recent decades, another school of thought has emerged. This field - known as behavioral economics or behavioral finance - has identified unconscious cognitive biases...
Will Preparing a will has long been a fundamental building block of any estate plan. With a properly drafted will you can arrange for your estate to be distributed and administered according to your wishes. In your will you can: • Appoint an executor to manage your estate through the probate process. • Appoint a guardian for your minor children or disabled beneficiaries. • Make specific bequests of property or assets to specific beneficiaries. • Designate assets to be placed in trust for fam...
It is difficult to predict a market crash. Currently, the demand for housing is low due to high interest rates. Supplies remain low, as well. Experts expect to see an increase in demand as summer arrives but we expect the lack of affordable housing to be a problem for years. According to a leading real estate data company ATTOM, their Housing Risk Report states that Kern County is one of the 50 most at-risk counties in the U.S. Based on home affordability and underwater mortgages (1.14% of...
Credit Unions (CUs) are important for businesses because they generally offer access to lower rates on financing when it comes to major purchases, such as buying equipment or expanding operations. CUs also often have better terms than traditional banks and other financial institutions, allowing businesses to save money in the long run. Additionally, many CUs offer specialized services, such as business financial education. Financial education programs are designed to help business owners...
Losing a spouse is one of the most painful experiences anyone can have. Unfortunately, widows and widowers have to deal with more than just the emotional trauma — they also must consider a range of financial issues. If you’ve recently been widowed, what financial moves should you consider? For starters, don’t rush into any major decisions. If you’re still in the grieving process, you are unlikely to be in the best shape to make significant choices affecting your finances and your life. But onc...
"The kitchen needs to be updated." "We need to build an additional room." "My roof needs to be replaced." "I have too much credit card debt." These are just a few of the comments I hear when a client wants more information on how they can access the equity in their home to make updates or pay off existing debt. Here are just a few of the options that Nations Lending currently can offer to help a client achieve their goal: One option is to consider a cash-out refinance. While there are differing...
A trust will streamline the process of transferring an estate after you die while avoiding a lengthy and potentially costly period of probate (in California if you have assets like a house, and it is worth more than $166,000, there will be a probate in most circumstances). However, if you have minor children, creating a will that names a guardian is critical to protecting both the minors and any inheritance. Deciding between a will or a trust is a personal choice, and some experts recommend...
When you hear or read that the market is up or down, what does that really mean? More often than not, it reflects movement in the two best-known stock market indexes, the Dow Jones Industrial Average and the S&P 500. In fact, there are hundreds of indexes that track various categories of investments. While you cannot invest directly in an index, you can buy funds that track specific indexes, and you can look at indexes as a benchmark for certain portions of your portfolio. For example, the Dow...
Here’s a sobering statistic: 72% of retirees say one of their biggest fears is becoming a burden on their families, according to a study by Edward Jones and the consulting firm Age Wave. If you are near retirement, how can you prepare yourself to become financially free, so you won’t have to depend on grown children or other family members? Here are a few suggestions to consider: • Keep adding to retirement savings. Today, with a greater awareness of healthy lifestyles, many people are spend...
Spring is the ideal time to begin searching for that new home. With the warmer weather and longer days, it is a great time to take advantage of viewing open houses to get a better idea of what type of property will suit your lifestyle and budget. However, the biggest challenge during the spring season of house hunting maybe be getting ahead of other prospective home buyers looking for that perfect home. To be one step ahead of competition, I suggest getting our Nations Lending Accelerated Edge...
Uncertainty has rocked the real estate industry in recent weeks. Since the Sitzer-Burnett verdict, a pending settlement, which must be approved by a judge, will provide a path ahead for real estate professionals and their clients. Instead of relying on a verbal conversation, a written agreement will now be required between a buyer and their real estate broker. This written agreement will be legally binding. It is designed to protect both the client, the broker and the real estate agent. This wri...
Tax-related identity theft occurs when someone uses a taxpayer's stolen Social Security number and name to file a tax return to claim a fraudulent refund. Often the taxpayer doesn't know this has occurred until they try to file a legitimate tax return and have their return rejected with an error code stating that a return has already been filed using that name and Social Security number. This article discusses the steps to take when a taxpayer's identity has been stolen, along with helpful sugge...
Social Security can play an important role in funding retirement, but it was never intended to be the only source of retirement income. The Social Security benefit formula is based on a worker's 35 highest-earning years (indexed for inflation), and the percentage of pre-retirement income replaced by the benefit is lower for those with higher earnings, reflecting the assumption that higher earners can fund retirement from other sources. Here are replacement rates - based on five levels of...
This is the question most asked when meeting with a potential borrower these days. The steady climb of mortgage rates over the last 3 years has made some borrowers hesitate to purchase, thinking rates will come back down into the 3% range or housing prices will crash. Many economists will agree that to see rates in the 3% range again, it would take a major economic event that we may not wish upon ourselves as rates tend to come down when there's negative economic news. While not a 100%...
One of your important sources of retirement income will likely be Social Security - but when should you start taking it? You can start collecting Social Security benefits at 62, but your checks will be considerably bigger if you wait until your full retirement age, which is likely between 66 and 67. You could even wait until you're 70, at which point the payments will max out, except for yearly cost-of-living adjustments. But if you need the money, you need the money, even if you're just 62 or...
As a business owner, do you mix personal transactions and business transactions? It is a common issue. One survey found that more than one-quarter of small businesses say they co-mingle finances. And it is easy to see why given the wide range of priorities a small business owner oversees every day, using a bank account that is already set up often seems like the easiest and most logical choice. But, while it might seem simpler to only manage one account, that is not actually the case. Here are...
Trusts have been used as an integral part of sophisticated tax and financial arrangements for centuries. Exactly how they are used depends on a person's particular goals, current tax rules, and other factors. Hopefully this article helps you to understand some ways a trust may help you. A trust is an arrangement in which title to property is held by someone for another's benefit. The trust can be established to benefit the person creating it (the grantor), or to benefit another (the...
