Lori and Jeff Collins Real Estate

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9385 Pawnee Trail, Kelseyville, CA. 95451. Listed for only $310,000.

7917 Ruinart Ct, Vallejo, CA 94591 Gorgeous Townhome in gated community ...

Losing weight, saving money, breaking bad habits… At the start of each new year, millions of people vow that January will mark a turning point in their lives.

If you’re also committed to making 2021 your year, consider adding a homeownership goal to your new year’s resolutions.

What do we mean? You could…

💳  Improve your credit score to qualify for the best of historically low mortgage rates

🛠️  Tackle a small home repair to capitalize on an ultra-competitive market and sell for top dollar

🏝️  Quarantine in style and earn a second income with an investment property

With today’s robust market conditions, the time is right to learn how real estate can contribute to your success in 2021.

Check out our latest blog post for more info and ideas:

How can you tell if you have a cold, the flu, or coronavirus?

 Local experts weigh in  By Amy Graff, SFGATE Updated 6:47 am PST, Tuesday, March 3, 2020


For more coverage, visit our complete coronavirus section here.
If you're showing signs of illness — a cough, runny nose and fever — how do you know whether you have a cold, the flu or COVID-19, the new coronavirus that originated in China and is spreading around globe.
The answer is that it's difficult to tell for sure unless you have been tested by a medical professional.
"It’s really hard because in all those things the spectrum of disease is broad," said Dr. Lee Atkinson-McEvoy, a pediatric doctor at UC San Francisco. "Even in coronavirus, they’re seeing people who have milder disease, so just a cough and runny nose, but no fever. Some people who test positive are asymptomatic, meaning no symptoms at all."

Coronaviruses are among a group of viruses that cause the “common cold,” and there are seven known ones that can infect humans. Four of these (229E, HKU1, OC43 and NL63) are seasonal and typically cause mild respiratory infection – fever, cough, nasal congestion, and headache, according to Dr. Charles Chiu, a professor of laboratory medicine and infectious disease at UC San Francisco.

FULL CORONAVIRUS COVERAGE

• Updates: 4 new cases in SF, 2 in San Mateo 10:34 AM
• California advises against even small social gatherings 9:50 AM
• Brazilian official who met Trump tests positive for coronavirus 10:50 AM
• Canadian leader Trudeau in virus self-isolation 10:51 AM
• Tom Hanks got tested in Australia, where it is a snap
• How does the coronavirus test work? 5 questions answered 9:38 AM

How can you tell if you have a cold, the flu, or coronavirus? Local experts weigh in

By Amy Graff, SFGATE

Updated 6:47 am PST, Tuesday, March 3, 2020

 

 

For more coverage, visit our complete coronavirus section here.
If you're showing signs of illness — a cough, runny nose and fever — how do you know whether you have a cold, the flu or COVID-19, the new coronavirus that originated in China and is spreading around globe.
The answer is that it's difficult to tell for sure unless you have been tested by a medical professional.
"It’s really hard because in all those things the spectrum of disease is broad," said Dr. Lee Atkinson-McEvoy, a pediatric doctor at UC San Francisco. "Even in coronavirus, they’re seeing people who have milder disease, so just a cough and runny nose, but no fever. Some people who test positive are asymptomatic, meaning no symptoms at all."

Coronaviruses are among a group of viruses that cause the “common cold,” and there are seven known ones that can infect humans. Four of these (229E, HKU1, OC43 and NL63) are seasonal and typically cause mild respiratory infection – fever, cough, nasal congestion, and headache, according to Dr. Charles Chiu, a professor of laboratory medicine and infectious disease at UC San Francisco.

"The remaining three coronaviruses (MERS, SARS, COVID-19) are the result of recent zoonotic (animal-to-human) transmission events and although they are also associated with mild respiratory symptoms, infection can progress to cause severe, life-threatening pneumonia," Dr. Chiu shared in an email.
ALSO: Are the elderly at a greater risk for coronavirus complications?
COVID-19 is the most recently discovered coronavirus and was unknown before the outbreak began in Wuhan, China in December 2019. To date, a vaccination or antiviral medication isn't available to treat it, according to the World Health Organization. People with serious illness should be hospitalized.
The flu, a.k.a. seasonal influenza, is similar to COVID-19. It also causes respiratory infection and can also lead severe pneumonia.
"The symptoms between common cold viruses, COVID-19, and the flu overlap significantly, at least in the early stages of illness," wrote Chiu. "Death from coronavirus in patients with pneumonia is thought to be a combination of direct damage of the viral infection to the airways (bronchiolitis and/or pneumonia), an abnormal immune response (“cytokine storm”), and secondary bacterial infections.  This is similar to the way people die from flu."

With the flu, the elderly, very young, or those with compromised immune systems are at the highest risk for severe disease. The current data available and research on the novel coronavirus suggests the elderly and immunocompromised are more susceptible to serious complications and children are at a lower risk, said Atkinson-McEvoy.
The latest estimates based on the reported number of cases and deaths around the world suggest that the death rate from COVID-19 infection is about 2 percent, but this may change as the epidemic progresses. For comparison, SARS had a death rate of about 10 percent and seasonal influenza has a death rate of 0.1%.
That said, Dr. Lee Riley, a UC Berkeley professor and chair of the Division of Infectious Disease and Vaccinology, adds mortality rate is frequently higher at the beginning of epidemics because "we don't know how to deal with them."
"We have vaccines for influenza so this contributes to its lower rate, but if we didn't have the vaccines, the mortality rates for influenza will be higher than 0.1%," said Riley. "Also, mortality rates for influenza varies according to the virus strain causing the epidemic, which changes every year.  So, it's too simplistic to compare mortality rates of two very different types of virus infections."
The most common symptoms of coronavirus are cough, fever and shortness of breath. In some cases, the virus causes severe respiratory illness. If a person develops symptoms and has reason to believe they may have coronavirus, the California Department of Public Health recommends you call your health care provider before going into a clinic or hospital
"Contacting them in advance will make sure that people can get the care they need without putting others at risk," according to the health department. "Please be sure to tell your health care provider about your travel history."


My thoughts
There are so many illnesses going around this year with the Coronavirus at the top of the list. Are you really prepared?  

Here’s why you shouldn’t celebrate that big tax refund by Darla Mercado @darla_mercado

Think twice before celebrating that large refund check from Uncle Sam.The IRS had doled out 45.5 million refunds as of Feb. 28, with the average refund check totaling $3,064. That amount is just $4 less than last year’s average refund.
Filers have reasons to celebrate their small windfall. Most have ambitious plans for their small windfall, including shoring up their savings and paying off debt.
Here’s the downside of getting a large check from the IRS: It means you voluntarily overpaid the taxman last year.
“Most people are really happy about the refund because it’s money going back to them,” said Sean Stein Smith, CPA and member of the American Institute of CPAs’ financial literacy commission.
“But any refund you’re getting back is because you had too much tax withheld from your paycheck during the whole year,” he said.

Where’s the refund coming from?

Whether you owe Uncle Sam or get money back in the spring will depend on a document your employer has on file, known as a Form W-4 or an employee’s withholding certificate.
Employers use this form along with the tax withholding tables to figure out how much income tax to pull from your paycheck.
The W-4 considers the number of dependents you have in your household, your filing status, income you generate and whether you’re claiming the standard or itemized deductions on your tax return.
Arriving at the ideal level of income tax withholding is as much art as it is science.

If you withhold far too little, you take home more money with each paycheck, but you run the risk of owing the IRS the following year.
If you withhold too much, you’re giving Uncle Sam more money than necessary. This gives you good odds for a large refund in the spring, but a smaller paycheck in the meantime.
It’s also worth noting that after the Tax Cuts and Jobs Act took effect in 2018, the IRS overhauled Form W-4 and its withholding calculator to reflect major changes to the tax code.  These changes include the roughly doubled standard deduction, the elimination of personal exemptions and new curbs on itemized deductions.

The new W-4 and the withholding calculator also account for side-gig or self-employed income you or your spouse may have.
You’re supposed to pay quarterly estimated taxes on this income — a requirement that moonlighting “9-to-5ers” may actually overlook.
“There is an extra line on W-4 where you can enter a flat amount that you want withheld form your paycheck,” said Andrea Coombes, tax specialist at NerdWallet. “That can help you get some of those estimated taxes paid and avoid a tax bill next year.”

How to figure out your taxes

A common misconception is that if your refund is high, then it must mean you’ve paid less in tax the prior year.
If anything, large refunds mean you’ve overpaid taxes.
However, if you really want to see how your taxes stand from one year to the next, look at line 16 of the Form 1040 — your income tax return for 2019 (line 15 on 2018′s 1040). This reports your total taxes paid.
Don’t forget to factor in the amount of income you’ve earned that year, too.

“It could be that your taxes went up because you have more income,” said Coombes. “It’s not necessarily bad news, but it could be something to think about.”
Review your 2019 tax return with your CPA or your tax preparer, as those results can help you strategize for next year.
Steps to consider might include lowering taxable income in the future by raising 401(k) plan contributions or socking money into health savings accounts and flexible spending accounts at work.

Aiming for zero

Zero is the magic number for taxpayers.
The IRS’s withholding calculator can help you tailor your tax withholding so that you’re close to matching your federal liability.
The amount of taxes you pay to your state might be a different story, so talk to your tax professional to make sure you’re paying just the right amount.
“In an ideal world, your income taxes withheld from paychecks should cover your income tax liability for that year,” said Smith. “Ideally your refund or additional taxes owed should be zero or as close to zero as possible.”

 

 

Reduce Refinancing Costs

There is much more than a lower rate and payment to determine whether to refinance a mortgage.  Lenders try to make refinancing as attractive as possible by rolling the closing costs into the new mortgage so there isn't any out of pocket cash required.

The closing costs associated with a new loan could add several thousand dollars to your mortgage balance.  The following suggestions may help you to reduce the expense to refinance.

·         Tell the lender up-front that you want to have the loan quoted with minimal closing costs.

·         Check with your existing lender to see if the rate and closing costs might be cheaper. 

·         Shop around with other lenders and compare rate and closing costs.

·         If you're refinancing an FHA or VA loan, consider the streamline refinance.

·         Credit unions may have lower closing costs because they are generally loaning deposits and their cost of funds is less.

·         Reducing the loan-to-value so mortgage insurance is not required will reduce expenses and lower the payment.

·         Ask if the lender can use an AVM, automated valuation model, instead of an appraisal.

·         You may not need a new survey if no changes have been made.

·         There may be a discount on the mortgagee's title policy available on a refinance.

·         Points on refinancing, unlike a purchase, are ratably deductible over the life of the loan ($3,000 in points on a 30-year loan would result in a $100 tax deduction each year.)

·         Consider a 15-year loan.  If you can afford the higher payments, you can expect a lower interest rate than a 30-year loan and obviously, it will build equity faster and pay off in half the time.

A lender must provide you a list of the fees involved with making the loan within 3 days of making a loan application in the form of a Loan Estimate and a Closing Disclosure Form.  Every dollar counts, and they belong to you.

Moisture & Mold

Moisture is mold's best friend and it thrives between 40 and 100 degrees Fahrenheit which is why it is commonly found in homes.  Mold spores float in the air and can grow on virtually any substance with moisture including tile, wood, drywall, paper, carpet, and food.

Moisture control and eliminating water problems are key to preventing mold. Common sources of moisture can be roof leaks, indoor plumbing leaks, outdoor drainage problems, damp basements or crawl spaces, steam from bathrooms or kitchen, condensation on cool surfaces, humidifiers, wet clothes drying inside, or improper ventilation of heating and cooking appliances.

• Control the moisture problem
• Scrub mold off hard surfaces using soap and water or other cleanser; dry completely
• Do not paint or caulk moldy surfaces
• Discard porous materials with extensive mold growth
• Avoid exposing yourself or others to mold
• Periodically, inspect the area for signs of moisture and new mold growth

The EPA suggests that if the moldy area is less than ten square feet, you can probably handle the cleanup yourself.  If the affected area is larger than that, find a contractor or professional service provider. 

Increasing ventilation in a bathroom by running a fan for at least 30 minutes or opening a window can help remove moisture and control mold growth.  After showering, squeegee the walls and doors. Wipe wet areas with dry towels.  Cleaning more frequently will also prevent mold from recurring or keep it to a minimum.

A simple solution to clean most mold is a 1:8 bleach/water mixture.  Since homes have thermostatically controlled temperatures and water is used all day long in the kitchen and bathrooms, the environment is conducive to mold. 

See Ten things you should know about mold written by the EPA.

What to Avoid Before Closing Your New Home

It’s understandable; you’re excited; you’ve found the right home, negotiated a contract, made a loan application and inspections.  Closing is not that far away, and you are making plans to move and put personal touches on your new home.

Even if you have an initial approval on your mortgage, little things can derail the process which isn’t over until the papers are signed at settlement and funds distributed to the seller.  The verifications are usually done again just prior to the closing to determine if there have been any material changes to the borrower’s credit or income that might disqualify them.

Most lending and real estate professionals recommend NOT to:

• Make any new major purchases that could affect your debt-to-income ratio
• Buy things for your new home until after you close
• Apply, co-sign or add any new credit
• Close or consolidate credit card accounts without advice from your lender
• Quit your job or change jobs
• Change banks
• Talk to the seller without your agent

The  lender and I are working together to get you into your new home.  It’s understandable to be excited and feel you need to be getting ready for the move.

Planning is fine but don’t do anything that would affect your credit or income while you’re waiting to sign the final papers at settlement.

Rising Rates Affect the Cost Too

Mortgage rates have risen 0.5% in 2018 on 30-year and 15-year fixed rate mortgages and experts expect them to continue to increase. Buyers paying attention to the market understand the relationship that inventory has on pricing; when the supply is low, the price usually goes up. Rising interest rates can affect the cost of homes also.

When interest rates go up, fewer people can afford homes. Lower numbers of buyers can affect the demand, which could cause prices of homes to come down. The question is how much do the interest rates have to go up to affect demand?

As the rates gradually go up, the affect may not be noticeable at all except for the fact that the payments for the buyer have increased.

A ½% change in interest is approximately equal to a 5% change in price. A $300,000 mortgage at 4.5% for a 30-year term will have a $1,520.06 principal and interest payment. If the mortgage rate goes up 0.5%, it would affect the payment the same as if the price had gone up 5%. The difference in payments for the full term of the loan would be $32,547.

There are some things beyond buyers’ control, but indecision isn’t one of them. If they haven’t found the “right” home yet, it is understandable. However, when that home does present itself, the buyer needs to be ready to make a decision. If they are preapproved and have done their due diligence in the market, they should be able to contract before significant changes occur in the mortgage rates.

Replace It Anyway

If it's not broken, why would a homeowner consider replacing something as expensive as a toilet when there may be other things in the home to replace that provide more aesthetic appeal. Don't be too quick to ignore the functionality and the reliability of this basic convenience.

The first rationalization might take place at the economic level. A water-saving model could easily pay for itself in a few years and then, there is the good feeling of participating in the conservation of our natural resources.

Having to plunge a toilet more than once a week could motivate a homeowner to spend money on a replacement especially, if having made repairs to the flapper and fill valve didn't solve the issue.

Maybe your existing toilet has ugly scratches that make it difficult to clean. Maybe there are cracks in the tank or bowl that you're concerned will develop into a leak at the worst possible time.

The average cost to replace a toilet is around $400 with models ranging more and less based on the features and brands. Round toilet bowls tend to take up less room, are less expensive and better suited for children. Elongated bowls generally take more room, have more powerful flushing action, more comfortable, more stylish and cost more.

Replacing the shut-off valve for the toilet could be a good thing to do while you're replacing the toilet. Generally, it is as old as the toilet and having a reliable valve that works could be very convenient in a future repair or emergency.

There are a variety of videos on YouTube that could give you the confidence to do it yourself or simply, to have a better understanding of the scope of the project

Before You Leave Town...

Along with all the planning of what you're going to do and where you're going to stay, consider this checklist to make you feel more comfortable while you're away from home.

• Ask a trusted friend to pick up your mail, newspaper and keep yard picked up to avoid an appearance of not being at home.
• Stop your mail (USPS Hold Mail Service) and your newspaper.
• Don't post about your trip on Facebook and other social media until you return; some burglars look for this type of announcement to schedule their activities.
• Do notify police or neighborhood watch - especially if you're going to be gone for more than just a few days. Let your monitoring service know when you'll be gone and if someone will be checking on your home for you.
• Light timers make it look like someone is home. Set multiple timers for various times to better simulate someone at home. There are plug-in modules for lights and appliances that would allow you to control them from your phone while your out of town.
• Do unplug certain appliances - TV, computers, toaster ovens that use electricity even when they're off and to protect them from power surges.
• Don't hide a key; burglars know exactly where to look for your key and it only takes them a moment to check under the mat, above the door, in the flower pot or in a fake rock.

These easy-to-handle suggestions may protect your belongings while you're gone while adding a level of serenity to your trip.

Owning Makes More Sense

When comparing the cost of owning a home to renting, there is more than the difference in house payment against the rent currently being paid. It very well could be lower than the rent but when you consider the other benefits, owning could be much lower than renting.

Each mortgage payment has an amount that is used to pay down the principal which is building equity for the owner. Similarly, the home appreciates over time which also benefits the owner by increasing their equity.

There are additional expenses for owning a home that renters don't have like repairs and possibly, a homeowner's association. To get a clear picture, look at the following example of a $300,000 home with a 3.5% down payment on a 4.5%, 30-year mortgage.

The total payment is $2,264 including principal, interest, property taxes, property and mortgage insurance. However, when you consider the monthly principal reduction, appreciation, maintenance and HOA, the net cost of housing is $1,218. It costs $1,282 more to rent at $2,500 a month than to own. In a year's time, it would cost $15,000 more to rent than to own which is more than the down payment and closing costs to buy the home.

With normal amortization and 3% annual appreciation, the $10,500 down payment in this example turns into $112,00 in equity in seven years. Check out your own numbers using the Rent vs. Own or call me at (707) 373-9908 Lori. Owning a home makes sense and can be one of the best investments a person will ever make.

A Word Homeowners Need to Understand

Acquisition Debt is the amount of money borrowed used to buy, build or improve a principal residence or second home. Under the new tax law, mortgages taken after 12/14/17 are limited to a combination of $750,000 on the first and second homes. The mortgage interest on this debt is tax deductible when itemizing deductions.

It is a dynamic number that is reduced with each payment as the unpaid balance goes down. The only way to increase acquisition debt is to borrow money to make capital improvements.

Prior to the new law, homeowners could additionally borrow up to $100,000 of home equity debt for any purpose and deduct the interest when itemizing deductions. Mortgage interest on home equity debt is no longer deductible unless it is for capital improvements.

Acquisition debt cannot be increased by refinancing. Some confusion occurs because mortgage lenders are concerned in making home loans that will be repaid according to the terms of the note and using the home as collateral. That does not include making a tax-deductible mortgage.

Another thing that adds confusion to the issue is that the lenders will annually report how much interest was paid in a year but only the amount that is attributable to acquisition debt is deductible.

Even if the interest on the cash-out refinance is not deductible, it may be advantageous to pay off higher interest debt such as credit card debt and replacing it with lower mortgage debt.

It is the responsibility of the taxpayer to know what part of their mortgage debt is deductible. The challenge becomes more difficult after a cash-out refinance. Homeowners should keep records of all financing and capital improvements and consult with their tax professional.

Unexpected Expenses

It's common for Sellers to consider offering a home warranty or protection plan to make their home more marketable. A growing number of homeowners are now purchasing this type of protection for themselves to limit the unexpected expenses of repairs and replacements.

A home protection plan is a renewable service contract that covers the repair or replacement of many of the components in a home. Some homeowners especially like the convenience that it organizes a qualified service provider as well as the cost of the repairs or replacements.

There are a variety of companies that offer home warranties and the coverage may differ but the majority of things will include heating, air conditioning, most built-in and some free-standing appliances, as well as other specific items. Additional specific coverage may be available for other items like pool and spa equipment.

Some investors are even placing this coverage on their rental properties to limit the amount of repairs during the year. It is a viable way to manage the financial risk and the stress dealing with unexpected expenses.

Call me at (707) 373-9908 Lori if you'd like a recommendation of available programs.

Don't Let a Killer In

Carbon monoxide is a silent killer you don't want in your home but because it is colorless and odorless; you may not even be aware the deadly condition exists. The Center for Disease Control says more than 400 people in the U.S. die annually from carbon monoxide poisoning and over 10,000 require medical treatment each year.

Unmaintained furnaces, water heaters and appliances can produce the deadly gas. In addition, other sources could be leaking chimneys, unvented kerosene or gas space heaters or exhaust from cars or trucks operating in an attached garage.

The Environmental Protection Agency suggests the following to reduce exposure in the home:

• Keep gas appliances properly adjusted
• Install and use an exhaust fan vented to the outdoors over gas stoves
• Open flues when fireplaces are in use
• Do not idle car inside garage
• Have a trained professional inspect, clean and tune-up central heating systems annually

Headaches, nausea, vomiting, dizziness and feelings of weakness or fatigue are a few of the most common symptoms. Lower levels of exposure to carbon monoxide may be mistaken for the flu.

Carbon monoxide alarms should be on every level of a home and especially, in sleeping areas. The alarms can be purchased for as little as $25 and plugged into the wall like a night light.

Regardless of the government requirements, no one would want to put their family, guests or themselves at risk for something so deadly.

Waiting Will Cost More

An economist responded when asked how interest rates would change: “They may fall some and then, rise and after that, they’ll fluctuate.”

Just because interest rates have been low for ten years doesn’t mean they are supposed to be low. The Federal Reserve has raised interest rates twice this year and are expected to go up twice more plus three times next year.  Mortgage rates have risen from 3.95% to 4.62% since the first of January.

Increased rates directly affect the payments on homes but so does the price. With inventory levels remaining low, the prices will continue to go up. When interest rates and prices rise at the same time, it costs buyers a lot more.

If the mortgage rates go up by one percent and prices increase by five percent in the next year, the payment on a $250,000 home could go up by $200 a month. In a seven-year period, the buyer would pay $18,000 more for the home.

People planning to buy a home, need to investigate the possibilities of accelerating their timetable to take advantage of lower rates and prices. Use the Cost of Waiting to Buy  calculator to see how much more it could cost you to wait.  Call (707) 373-9908 Lori if you have questions about what can be done now.

The Tax Difference in Second Homes

A principal residence and a second home have some similar benefits, but they have some key tax differences. A principal residence is the primary home where you live and a second home is used mainly for personal enjoyment while limiting possible rental activity to a maximum of 14 days per year.

Under the 2017 Tax Cuts and Jobs Act, the Mortgage Interest Deduction allows a taxpayer to deduct the qualified interest on a principal residence and a second home. The interest is reduced from a maximum of $1,000,000 combined acquisition debt to a maximum of $750,000 combined acquisition debt for both the first and second homes.

Property taxes on first and second homes are deductible but limited to a combined maximum of $10,000 together with other state and local taxes paid.

The gain on a principal residence retained the exclusion of $250,000/$500,000 for single/married taxpayers meeting the requirements. Unchanged by the new tax law, the gains on second homes must be recognized when sold or disposed.

Tax-deferred exchanges are not allowed for property used for personal purposes such as second homes. Gain on second homes owned for more than 12 months is taxed at the lower long-term capital gains rate.

This article is intended for informational purposes. Advice from a tax professional for your specific situation should be obtained prior to making a decision that can have tax implications.

When Neighbors Don't Seem to Care

A home that isn't being maintained like others in the neighborhood can negatively affect your visual sense of appeal and in some extreme cases, even affect property values. It might be an overgrown yard, a fence in need of repair, excessive noise, unruly pets, paint peeling on the home or even a car or boat parked in front of the home that hasn't moved in weeks.

Most people want to be good neighbors and may be willing to correct an issue once it is brought to their attention. A practical, but possibly confrontational, solution is to contact the responsible person and describe your perception of the issue. However, they may not always agree with the same urgency and it might be necessary to seek other remedies.

An owner-occupant may be more sympathetic to the neighbors and willing to correct the issue. If you think the home might be a rental property, check with the county tax records to identify the owner. They may be unaware of the situation and welcome the notification to protect their investment.

Another alternative might be to notify the homeowner's association, if there is one. One of the benefits of a HOA is to enforce community appearance standards as set in the covenants or bylaws that specify how properties must be maintained. This could be a less personal method of reaching a beneficial outcome.

If the source of the problem is a code or housing violation, the city may be the ultimate authority. Most cities have a separate code and neighborhood services division and some cities have 311 for non-emergency assistance.