Can You Spot The $596,000 Difference In Identical Homes?

Can you spot the difference? Let me give you a hint; it’s not the landscaping. It’s not the location. It’s not the gold plated fixtures in the master bathroom. In fact, it’s not anything you’d ever notice with the naked eye. The $596,000 differences are in how much the buyers unwittingly may pay for this home if they aren’t careful.

 I recently met with a gentleman who was referred to me by his financial advisor to receive some consulting on how to best structure his mortgage in preparation for retirement. He wanted to retire in 13 years and he had refinanced his mortgage last year to a 15-year fixed rate loan, taking advantage of the low rates, and wants to own his home free and clear right about the time he retires.

 Most home owners have the misconception that the wisest method to accelerate the pay-off of their home is to simply pay extra principal payments to their mortgage by utilizing a 15-year mortgage, bi-weekly payments or even by adding an extra $100 each monthly. In actuality, none of these methods usually proved to be the wisest method to accomplish a “free and clear” home.

 You can accumulate sufficient cash in a conservative tax-deferred mortgage acceleration plan to pay off a home just as soon or sooner than utilizing the methods described above. In addition you can accomplish the goal of paying off your home just as soon (typically in less than half the time) plus you will have the following advantages: 1) Maintain flexibility, liquidity and safety of principal by allowing the equity to grow in a separate side fund where it is accessible in case of emergency, temporary disability, or unemployment. 2) Maximize the only real tax-deductible interest allowed by tax reform by keeping the loan balance as high as possible until you have the cash accumulated to pay off your home in a lump sum.

 Let’s look at our example above…by strategically refinancing and taking advantage of the tax deductibility of mortgage interest we were able to accumulate enough money (at only 6% rate of return) to pay off the home in 8-1/2 years instead of 14 years. If he continued to invest his monthly saving he would have $596,000 more than the balance his mortgage at the time he was ready to retire. Don’t be fooled into giving up the liquidity, safety and potential rate of return on your money by giving it to your mortgage company. Get the facts and structure your mortgage to give you the greatest advantage from the start.

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Burbank California Real Estate

Burbank, California, is located in Los Angeles County, and is nine miles north of Los Angeles, California. Burbank has a population of 100,316. Among its residents are those who work in the media and entertainment field. NBC, Warner Studios, and Disney Entertainment call Burbank their home. The city is served by Burbank International Airport.


Burbank’s homes consist of luxury homes in the hills, and single and multi-family homes throughout the city.  Its sunny weather, prosperous economy, relative safety, and consistently high-ranking schools make Burbank a popular place to live, especially with families and those in media and entertainment.

Burbank properties pool is 41,608 residential properties including Burbank new homes. The median age of real estate in Burbank is 1956. The average household size is 3.14 people. 7% are one bedroom homes, 39% are 2 bedroom homes, 42% are 3 bedroom homes, 10% are 4 bedroom homes, and 2% are 5+ bedroom homes.


Homes With No Mortgage - 26%
Homes With Mortgage    - 74%
First Mortgage Only    - 56%
First & Second Mortgage or HELOC - 18%


Burbank Real estate Tax: Median Real Estate Taxes (2000) were $1,640 comparing to 1999 Median Family income $ 56,767. Compare to USA median yearly Real Estate Tax $1,300 and USA median Family Income $42,000 (1999).

Burbank School District: The Burbank School District consistently rate as one of the most successful in the County. Parents are keen to purchase homes here in order to send their children to the highly successful District.

Children make up 22.3% of Burbank population. Burbank has 22,337 under 18 years old residents, or 0.46 kids per one worker, or 0.54 kids per one household.

Burbank Real Estate & Burbank Homeownership

There are 14146.72 or 34% one person households, 12482.4 or 30% two person households, and 6241.2 or 15% three person households in Burbank, California. Median residents age is 36.4, Senior citizens (65+) make up 12,859 or 12.8%% of Burbank population.

There are 48,430 workers (over 16 years of age) in Burbank. Of these, 89.33% drive to work. Approximately 2.56% of workers in Burbank take public transportation, reflecting the area’s over reliance on cars. An estimated 2.75% walk to work.

Median Burbank homeowner's housing expenses are 22.4%

Crime in Burbank (2003), crimes per 10,000 residents per year
Violent Crimes       - 28.21
Robberies            - 6.88
Aggravated Assaults  - 19.54
Property Crimes      - 268.55
Burglaries           - 49.84
Larceny-Thefts       - 172.26
Motor Vehicle Thefts - 46.45


When making a decision about buying real estate in Burbank California area, many factors should be considered, along with the following statistical data:
Near Medium City            -
Near Large City             - Los Angeles, California
Burbank Zip Codes           - 91501, 91502, 91504, 91505, 91506
Burbank Area Codes          - 818
White population            - 72.18%
African-American population - 2.06%
Asian                       - 9.15%
American Indian & Alaskan   - {-}%
Hispanic (of any race)      - 24.87%
Median Family Income (1999) - $ 56,767%
Population Below Poverty Level - 10.45%

Anchorage Alaska Real Estate

Anchorage, Alaska, is located in Anchorage County and lies 1434 miles northwest of Seattle, Washington. Anchorage has a population of 260,283. Its residents enjoy outdoor activities like kayaking through Prince William Sound, fly-fishing, skiing, and hiking and a relatively mild climate.

Anchorage is a historical and bustling city that serves as the transportation, banking, and business center of the state.  Notable structures include historic buildings such as Anchorage’s City Hall, built in 1936, as well as the 4th Avenue Theatre, an art deco style building dating from 1947 with stunning floor to ceiling bronze interior murals.

Anchorage, incorporated in 1920, is a relatively young city, and homes built in the 1950s almost enjoy historic status. Nevertheless, the city’s vibrancy has earned Anchorage the reputation as the new ‘in’ city for travelers to Alaska as well as new residents, who come for its excellent transportation system, mild weather, and central location.

Anchorage Homes

Anchorage properties pool is 94,822 residential properties including Anchorage new homes. The median age of real estate in Anchorage is 1977. The average Household size is 3.19 people. 4% are one bedroom homes, 19% are 2 bedroom homes, 46% are 3 bedroom homes, 24% are 4 bedroom homes, and 5% are 5+ bedroom homes.

Anchorage Mortgage Statistics

Homes With No Mortgage 14%
Homes With Mortgage 86%
First Mortgage Only  74%
First & Second Mortgage or HELOC 12%

Anchorage Area Real Estate Tax

Anchorage Real estate Tax: Median Real Estate Taxes (2000) were $2,523 comparing to 1999 Median Family income $ 63,682. Compare to USA median yearly Real Estate Tax $1,300 and USA median Family Income $42,000 (1999).

Anchorage School District: Children make up 29.1% of Anchorage population. Anchorage has 75,871 under 18 years old residents, or 0.58 kids per one worker, or 0.8 kids per one household.

Anchorage Real Estate & Anchorage Home Ownership

Most residents of this city have come from elsewhere in the United States.  Many came to work in the oil fields. Alaskan Native peoples comprise about 8% of the population. The city also has a growing population of Asian and Hispanic residents.

There are 21809.06 or 23% one person households, 30343.04 or 32% two person households, and 17067.96 or 18% three person households in Anchorage, Alaska. Median residents age is 32.4, Senior citizens (65+) make up 14,242 or 5.5%% of Anchorage population.

There are 131,228 workers (over 16 years of age) in Anchorage. Of these, 89% drive to work. Approximately 2.02% of workers in Anchorage take public transportation. An estimated 2.66% walk to work.

Median Anchorage homeowner's housing expenses are 20.9%

Crime in Anchorage (2003), crimes per 10,000 residents per year
Violent Crimes 67
Robberies 13.06
Aggravated Assaults  43.91
Property Crimes  449.74
Burglaries 54.48
Larceny-Thefts 349.27
Motor Vehicle Thefts 45.99

Invest in Anchorage Properties

When making a decision about buying real estate in Anchorage Alaska area, you should consider following statistical data:
Near Medium City        
Near Large City  Seattle, Washington
Anchorage Zip Codes  99501, 99502, 99503, 99504, 99505, 99506, 99507, 99508, 99513, 99515, 99516, 99517, 99518, 99529, 99530, 99540, 99599
Anchorage Area Codes 907
White population 72.23%
African-American population 5.84%
Asian 5.55%
American Indian & Alaskan
Hispanic (of any race) 5.69%
Median Family Income (1999) - $ 63,682%
Population Below Poverty Level - 7.18%

5 Ground Rules for Home Buying Success

There are few purchases in life that carry the financial and psychological weight of buying a home.  Whether you are buying your first home, moving up to your dream home, or downsizing your home and your life after the kids have gone, it is important to understand the ground rules for success in the world of buying a home.

Making the wrong decision in buying a home can have devastating and long lasting effects, while making a wise decision in home buying can greatly enhance the overall value of the investment.  It is necessary to learn all you can about the world of home buying and mortgages before setting out to purchase the home of your dreams.

While there are plenty of web sites designed to help first time homeowners learn all they can, most financial experts say that there is no substitute for the good old one-on-one learning. Fortunately, most mortgage lenders, home inspectors and real estate agents will be able to provide this kind of one-on-one learning.

When buying a home it is often best to use a systematic approach as this is often the best way to be sure that all decisions are based on information and reason, not on impulse or emotion.  Buying a home can be an emotional process, nevertheless it is imperative to keep your emotions under control and not let them cloud your judgment.

There are five basic ground rules when it comes to buying a home and shopping smart, and they are:

<b>#1 – Get your financing before you get your home</b>

There are few things in life as disappointing as losing out on the home of your dreams due to not being able to secure funding.  While the desire to get out there are search for that great home is understandable, it is vital to line up the financing you will need before you start shopping for a home.

Getting the financing ahead of time has a number of important advantages, including knowing how much you can buy and gaining more respect from the listing agents.  By knowing how much home you can afford before you shop you will avoid wasting your time looking at unaffordable properties, and the listing agent will be more than willing to show you the homes in your price range.

It is also important to take a good look at the various types of mortgage on the market before getting started in the home buying process.  These days, mortgages come in far more choices than the typical 15 or 30 year. For that reason, potential home buyers need to understand how each type of mortgage works, and to gauge which mortgage is the best choice for their needs.

<b>#2 – Look at the community, not just the home</b>

It is a good idea to look at the entire community, instead of focusing on a single home. This can be a particularly important thing to consider for those moving to a new metropolitan area, as these buyers will be unfamiliar with the local climate and lifestyle.  It is crucial to determine the areas of town that are most desirable, and to consider things like distance from work and local shopping opportunities.

We have all heard that location is the key consideration when it comes to real estate, and that is certainly the case.  Buying a house in the wrong area can be a big mistake, and it is important to choose the location as well as the home.  Potential buyers can learn a great deal about the nature of the various neighborhoods simply by driving around town, as well as by talking to other residents.

<b>#3 – Be fair with your first offer</b>

Trying to lowball a seller on the first offer can backfire, as can paying too much. It is important to carefully evaluate the local market, and to compare the asking price of the home with what similar houses in the neighborhood have sold for.

Comparing the sales of comparable homes, what are known as "comps" in the industry, is one of the best ways to determine what is fair, and to make sure that you neither overpay or underbid on the property.

<b>#4 – Always get a home inspection</b>

Always investigate the home for any possible defects before making an offer.  Compared to the cost of the average home, the price of a quality home inspection is virtually negligible. Hence, get a good home inspection done before you buy.

To find the best home inspector, it is a good idea to seek out word of mouth referrals as many of the best home inspectors rely on word of mouth advertising.

<b>#5 – Do not alienate the sellers of the home</b>

Many real estate deals have fallen apart due to the personal animosity of the buyer and the seller.  It is important to avoid alienating the seller of the home during the process, and to avoid nitpicking every little detail during the sale.

Keeping the good will of the seller will help the transaction go smoothly, and it will provide the best environment for seller and buyer alike.

Assembling your Real Estate Investing Team

There are several important things you need to be successful in <a href="http://www.biggerpockets.com">real estate investing</a>, one of which is a great team. I'm going to talk briefly about who should be on the winning team:

1. <span style="font-weight:bold">Your Mentor</span> - every successful entrepreneur needs a good mentor. A guide. By training under the watchful eye of one smarter then us, we can only get smarter. Start at your local investment club

2. <span style="font-weight:bold">Mortgage Broker</span> - you want someone who has the experience of working with other investors. They need to be creative and smart!

3. <span style="font-weight:bold">Real Estate Attorney</span> - it is really important to have someone on the team who can go through contracts, and who knows the legalities of all your moves.

4. <span style="font-weight:bold">Escrow Officer or Title Rep</span> - having a good one on the team helps to close deals that much quicker. You always want people looking out for YOUR interests.

5. <span style="font-weight:bold">Accountant</span> - Preferably a CPA (Certified Public Accountant). Your numbers guy should also be well aware of the ins and outs of real estate. Come tax time, this is the man to help you through the write-offs!

6. <span style="font-weight:bold">Insurance Agent</span> - It is always better having an insurance rep that is looking out for you when things hit the fan.

7. <span style="font-weight:bold">Contractor</span> - The good contractor seems like the hardest one to find, but can often make or break your profit margin. You want someone who gets things done on time and under budget!

8. <span style="font-weight:bold">Supportive Family & Friends</span> - Having the support and backing of loved ones is important in any endeavor.

Other Optional Team Members:

9. <span style="font-weight:bold">Realtor</span> - someone keeping an eye out for you

10. <span style="font-weight:bold">Property Manager</span> - someone to watch over your investments

11. <span style="font-weight:bold">Great Handyman</span> - Someone to take care of the little things that come up on a daily basis.

Assembling the team will not happen overnight, but once together, they will give you the backing and help you'll need to make your real estate investing dreams come true.

Bakersfield California Real Estate

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Bakersfield, California, is located in Kern County, 100 miles NW of Los Angeles, California. Bakersfield has a population of 247,057. It has become a popular place for visitors en route to and from Las Vegas and Los Angeles, who stop for outdoor adventures such as whitewater rafting on the Kern River or hot air ballooning over the San Joaquin Valley.

Agriculture is king in Bakersfield. The region grows over 250 types of crops, with about 30 types of fruits and nuts, 40 types of vegetables, and over 20 field crops. Lumber, livestock, poultry and dairy products are also big industries here. The area is also home to the California State University, and Bakersfield College, and numerous museums and galleries.

Bakersfield Homes

Bakersfield properties pool is 83,428 residential properties including Bakersfield new homes. The median age of real estate in Bakersfield is 1979. The average household size is 3.41 people. 3% are one bedroom homes, 14% are 2 bedroom homes, 56% are 3 bedroom homes, 22% are 4 bedroom homes, and 2% are 5+ bedroom homes.

Bakersfield Mortgage Statistics

Homes With No Mortgage 18%
Homes With Mortgage 82%
First Mortgage Only 63%
First & Second Mortgage or HELOC 19%

Bakersfield Area Real Estate Tax

Bakersfield Real estate Tax: Median Real Estate Taxes (2000) were $1,422 comparing to 1999 Median Family income $ 45,556. Compare to USA median yearly Real Estate Tax $1,300 and USA median Family Income $42,000 (1999).

Bakersfield School District: Children make up 32.7% of Bakersfield population. Bakersfield has 80,683 under 18 years old residents, or 0.81 kids per one worker, or 0.97 kids per one household.

Bakersfield Real Estate & Bakersfield Homeownership

There are 18354.16 or 22% one person households, 23359.84 or 28% two person households, and 14182.76 or 17% three person households in Bakersfield, California. Median residents age is 30.1, Senior citizens (65+) make up 21,681 or 8.8%% of Bakersfield population.

There are 99,769 workers (over 16 years of age) in Bakersfield. Of these, 92.68% drive to work. Approximately 1.73% of workers in Bakersfield take public transportation. An estimated 1.32% walk to work.

Median Bakersfield homeowner's housing expenses are 22%

Crime in Bakersfield (2003), crimes per 10,000 residents per year
Violent Crimes 61.28
Robberies 17.77
Aggravated Assaults 40.88
Property Crimes 570.8
Burglaries  109
Larceny-Thefts 381.09
Motor Vehicle Thefts 80.71

Invest in Bakersfield Properties

When making a decision about buying real estate in Bakersfield California area, you should consider the following statistical data:
Near Medium City         
Near Large City  Los Angeles, California
Bakersfield Zip Codes  93301, 93304, 93305, 93306, 93307, 93308, 93309, 93311, 93312, 93313, 93314
Bakersfield Area Codes 661
White population  61.87%
African-American population 9.16%
Asian  4.33%
American Indian & Alaskan
Hispanic (of any race) 32.45%
Median Family Income (1999)  $ 45,556%
Population Below Poverty Level  17.72%

Educated Consumers Can Save Money on Mortgages

Not only is owning a home an integral part of the American dream, but our home is likely the biggest purchase we will ever make and the biggest asset - or liability - we will ever have. Until about a year ago, of course, no one would have imagined that a home could be a liability. That's when housing prices started to drop and relatively new homeowners realized that it was only a matter of time before their adjustable rate mortgages would skyrocket.

Experts agree that house values haven't yet reached their nadir and that many homeowners are poised on the precipice. While some people might find it easier to stick their heads in the proverbial sand, smart homeowners and homebuyers see the current market as an opportunity to either take a second look at their existing mortgages or to shop around for new mortgages. Either way, it's important to learn all that you can about different ways to finance a home before you take the plunge. Here are a few scenarios that illustrate some of the choices available today.

Nine years ago, Sam and Jenny Thompson bought a home that was ten years old. They were savvy enough to buy their house just before prices went through the roof. They have well over $100,000 of equity in their home, but their home is showing signs of wear. It's time for a new roof, a new heating and air conditioning system, and they know that they need to have some dry rot repaired and have the house painted. They don't have much in savings, though, and want to borrow money so that they can get the repairs done.

Sam and Jenny have a few options to pay for home improvement. They can refinance their home and get cash out for the repairs, they can get a home equity line of credit, or they can get a second mortgage. Which option is best depends largely on that status of their current mortgage. If they have a low interest, fixed rate loan, it probably doesn't make sense to refinance. If they're planning on staggering their home improvement over the next two years, it probably doesn't make sense to get a lump-sum second mortgage. Instead, a home equity line of credit might work best. On the other hand, if they have an adjustable rate mortgage, it might be financially prudent to refinance to a fixed rate loan and cash out part of their equity to make their home repairs.

Cynthia and Bill Williams have owned their home for five years, but are concerned that Bill might be laid off in the next six months. They have quite a bit of money in savings, but have racked up considerable credit card debt. Because they're paying a high interest rate on their credit card debt, they may want to use a home equity line of credit for debt consolidation purposes, and to have a cushion in case Bill does lose his job.

When Rebecca Richards bought her home two years ago, she thought housing prices would continue to soar and interest rates would go down. She bought her house with an adjustable loan and is terrified that, when the loan adjusts later this year, she won't be able to make her payments. In this scenario, Rebecca needs to meet with her lender now, rather than wait for the other shoe to drop. If possible, she should convert her adjustable rate home loan to a fixed rate loan.

The bottom line is that, whatever your circumstances, you need to learn all that you can about the options available to you. Thankfully, there are resources on the Internet that not only have a library of informative articles on mortgages, but that also provide the calculators and tools you need to find the answers to your questions. The best sites even offer a variety of loan programs and will prepare a personalized quote for the types of mortgages that you might be interested in.