September 2014 1/34 ABCT Soldier Family Toolkit
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Transcript of September 2014 1/34 ABCT Soldier Family Toolkit
1
Volume 30, September 2014
The Housing
Issue
SOLDIER & FAMILY TOOLKIT 1/34 ARMORED BRIGADE COMBAT TEAM
Free Twins Tickets
Page 4
Rent or Buy?
Page 11
A Tale
of Two
Remodels
Page 18
2
The intent of this toolkit is to provide you with available events, deals, resources,
and important information. Please take a
IN THIS ISSUE
From the Editor:
Thanks for reading our Soldier Family Toolkit. The intent of this toolkit is to provide you with available events, deals, resources, and important information.
This month’s issue is about housing. This is generally the biggest monthly expense that people have and can be the biggest source of stress. There are many considerations when making these choices. While I am not a financial expert, I have noticed that when people are patient and conservative with their housing decisions, they have much less stress than people that spend more and make decisions hastily.
The events and deals section is full this month. There are offers from both the Twins and Wild to look forward to.
3 BEYOND THE
YELLOW RIBBON
EVENTS & DEALS
7 STAR FAMILY EVENT
8 HEROES FOR HOPE
9 WINTER DRIVING
10 WINTER HOME
PREPAREDNESS
11 MILITARY ONESOURCE
ARTICLES
16 HEALTHY
MONEY HABITS
21 RESOURCE LINKS
22 FAMILY ASSISTANCE
CENTERS
3
Check out the Beyond the
Yellow Ribbon website and
sign up for exclusive email
updates on monthly local
Beyond the Yellow Ribbon
events and deals.
HOME FRONT EVENTS & DEALS
www.BeyondTheYellowRibbon.org
Minnesota Woman Veteran Award When: Now until Sep. 15, 2014
Where: Minnesota Humanities Center, St. Paul
About: The Women Veteran's Initiative is sponsoring the
Minnesota Women Veteran of the Year Award and is now
accepting nominations. 2014 nominations will close on
September 15th. Our Minnesota State Legislature and
Governor Dayton have designated October as Veterans'
Voices Month. As just one of many special events to
honor and celebrate the accomplishments of Minnesota
Veterans, the Minnesota Women Veteran of the Year
Award will be presented on Saturday, October 11th at the
Minnesota Humanities Center.
More Info: Flyer
2014 Muzzleloader Hunting Application When: Applications will be accepted from Aug. 1 to Sep.
15, 2014
Where: Camp Ripley, Little Falls
About: Applications for the 2014 Camp Ripley Muzzle-
loader Hunt are being accepted now through September
15th. Applicants must be an active or retired Minnesota
Army or Air National Guard Soldier that has been mobi-
lized in support of the Global War on Terrorism since
September 11, 2001. Please not that only online applica-
tions will be accepted this year.
More Info: Flyer
St. Croix Festival Theatre - Military Discount When: Aug. 9 through Sep. 7, 2014
Where: St. Croix Festival Theatre, St. Croix Falls, WI
About: Sip a glass of wine and watch professional theatre
in a historical building. The St. Croix Festival Theatre is
offering a 10% military discount to the performance of
"The 39 Steps".
More Info: Flyer
Wounded Warrior Ride When: Sep. 6, 8 a.m.
Where: 15407 McGinty Road, Wayzata
About: Support the Warrior Wounded Project and register for
the Wounded Warrior Ride, a multi-distance bicycle ride. A
picnic lunch and beverages will be served after the ride, fol-
lowed by live music from the Hunker'd Down Blues Band.
More Info: Flyer
Free Spaghetti Dinner When: Sep. 6, 5 p.m. to 7:30 p.m.
Where: American Legion Post 57, Chaska
About: Beyond the Yellow Ribbon of Chaska would like to
come out and say thank you to Servicemembers and veterans
by hosting a free spaghetti dinner at the American Legion
Post 57.
More Info: Flyer
Tween Overnight - Sea Life Aquarium When: Sep. 6-7, 2014
Where: Sea Life Aquarium, Mall of America
About: Sleep under the sea at the Sea Life Aquarium in the
Mall of America and discover resilience and adaptations of
marine life through hands on programs and behind the scenes
tours.
More Info: Flyer
Military Appreciation Night - Minnesota United FC When: Sep. 6, 7 p.m.
Where: National Sports Center Stadium, Blaine
About: Minnesota United FC is honoring military Service-
members during the September 6th match against the Tampa
Bay Rowdies. Active military and veterans, along with their
friends and family, can receive $5 off standard tickets. Regis-
ter online and use Promo Code: MILITARY
More Info: Flyer Website
4
Check out the Beyond the
Yellow Ribbon website and
sign up for exclusive email
updates on monthly local
Beyond the Yellow Ribbon
events and deals.
HOME FRONT EVENTS & DEALS
www.BeyondTheYellowRibbon.org
Metro Law Clinic When: Sep. 9, 9 a.m. to 2 p.m.
Where: VA Medical Center, Minneapolis
About: Minnesota Assistance Council for Veterans
(MACV), in partnership with the law firm of Fredrikson &
Byron, P.A., invites you to participate in a free drop-in legal
clinic for veterans.
More Info: Flyer
Carry the Fallen 12 Mile Ruck March When: R.S.V.P. by Sep. 10, 2014. Event will be held on
Sep. 13, 8 a.m.
Where: VFW Post 1785, White Bear Lake
About: Lieutenant Colonel James W. Carmichael, Com-
mander, 407th Civil Affairs Battalion, requests the pleasure
of your support or participation at the Carry the Fallen 12
Mile Ruck March. This event will suport suicide awareness
for our veterans.
More Info: Flyer
Operation Welcome Home When: Sep. 12 to 14, 2014 (Married Couples)
Where: Ironwood Springs Christian Ranch, Stewartville
About: Operation Welcome Home offers several faith-based
retreats to provide encouragement, hope, and inspiration to
veterans and their spouses and families.
More Info: Flyer
MMAF Say Thanks Day When: Sep. 13, 8 a.m. Mail-in registration deadline is Sep.
5 Online registration deadline is Sep. 10
Where: Boy Scout Base Camp, Fort Snelling
About: Bring your family and friends to a great event that
honors our troops. Walk or run for our Minnesota heroes at
the Minnesotan's Military Appreciation Fund's 10th annual
Say Thanks Day.
More Info: Flyer
Ed Sheeran Concert When: Sep. 15, 7:30 p.m.
Where: Target Center, Minneapolis
About: Atlantic recording artist Ed Sheeran has announced plans
for his first-ever headlining arena tour of North America. Blending
soulful vocals with organic folk introspection and irresistible hip-
hop hooks, Ed Sheeran is a genuine global phenomenon.
More Info: Flyer
Salute Job Fair When: Sep. 15, 10 a.m. to 3 p.m.
Where: Ramada, Rochester
About: Salute MN exists to create an atmosphere of camaraderie
and trust in the local veteran community for active duty, guards-
men, reservists and veterans. Salute offers education, jobs, and
financial guidance.
More Info: Flyer
Twins vs Detroit Tigers When: Sep. 17, 7:10 p.m.
Where: Target Field, Minneapolis
About: Free tickets are available for Servicemembers and their
families to see the Minnesota Twins vs Detroit Tigers. Tickets are
available for pick up on a first come, first served basis starting on
Tuesday, Sep. 2, in the Family Programs Supply Room at the Cot-
tage Grove Armory. Look for signs.
More Info: Cottage Grove Armory, 8180 Belden Blvd, Cottage
Grove, MN 55016. POC: SFC Stacey Holley, sta-
[email protected] This e-mail address is being protected
from spambots. You need JavaScript enabled to view it
MyHealtheVet Class When: Sep. 17, 7 p.m.
Where: Wescott Library, Eagan
About: Attend a free class at Wescott Library in Eagan and learn
how to use MyHealtheVet.
More Info: Website
5
Check out the Beyond the
Yellow Ribbon website and
sign up for exclusive email
updates on monthly local
Beyond the Yellow Ribbon
events and deals.
HOME FRONT EVENTS & DEALS
www.BeyondTheYellowRibbon.org
Professional Bull Riders Blue DEF Velocity Tour When: Sep. 20, 7 p.m.
Where: Target Center, Minneapolis
About: During this one day event, the best up and coming bull riders in the
world will face off with foes nearly 10 times their weight in sinewy brawn
during the most thrilling 8 seconds in sports.
More Info: Flyer
Heroes for Hope Fun Run Challenge When: Sep. 20, 11 a.m. to 3 p.m.
Where: Rice Lake Park, Maple Grove
About: Bring your family and friends to this super-fun event! The Heroes for
Hope Fun Run will include a Superman zip-line, Spiderman silly string web,
Wonder Woman (bean bag) deflector challenge, and much more. Proceeds
from this event will benefit Canvas Health's Crisis Connection.
More Info: Flyer Website
Twins vs Arizona Diamondbacks When: Sep. 22, 7:10 p.m. & Sep. 23, 7:10
Where: Target Field, Minneapolis
About: Free tickets are available to Servicemembers and their families to see
the Minnesota Twins vs Arizona Diamondbacks. Tickets are available on a
first come, first served basis starting on Tuesday, Sep. 2, in the Family Pro-
grams Supply Room at the Cottage Grove Armory. Look for signs.
More Info: Cottage Grove Armory, 8180 Belden Blvd., Cottage Grove, MN
55016. POC: SFC Stacey Holley, [email protected] This e-mail
address is being protected from spambots. You need JavaScript enabled to
view it
Camp Ripley Golf Tournament When: Sep. 22, 2014
Where: Eagles Landing Golf Course, 5 miles north of Camp Ripley, Fort Rip-
ley
About: The 49th Annual Camp Ripley Golf Tournament will be held on Mon-
day September 22, 2014 at Eagles Landing Golf Course. All full-time, part-
time, temporary Camp Ripley employees, retirees, and friends of Camp Rip-
ley are invited to participate.
More Info: Registration
Metro Law Clinic When: Sep. 23, 10:30 a.m. to 3:30 p.m.
Where: HCS Auditorium, St. Cloud VA
About: Minnesota Assistance Council for Veterans,
in partnership with Central Minnesota Legal Ser-
vices, invites you to participate in a free drop-in
legal clinic for veterans.
More Info: Flyer
MACV Stand Down When: Sep. 24, 8 a.m. to 2 p.m.
Where: Bemidji Armory
About: The Minnesota Assistance Council for Vet-
erans (MACV) is hosting a Stand Down! This
event offers many free services for veterans to in-
clude meals, clothing, legal assistance, haircuts,
employment assistance, counseling, and much
more.
More Info: Flyer
MACV Stand Down When: Sep. 25, 8 a.m. to 2 p.m.
Where: National Guard Armory, Grand Rapids
About: The Minnesota Assistance Council for Vet-
erans (MACV) is hosting a Stand Down! This
event offers many free services for veterans to in-
clude meals, clothing, legal assistance, haircuts,
employment assistance, counseling, and much
more.
More Info: Flyer
5K Honor Run When: Sep. 27, 2014
Where: Lions Park, Little Falls
About: Come out and run in honor of a Service-
member, veteran, military family, or any individual
that you would like to honor.
More Info: Flyer
6
Check out the Beyond the
Yellow Ribbon website and
sign up for exclusive email
updates on monthly local
Beyond the Yellow Ribbon
events and deals.
HOME FRONT EVENTS & DEALS
www.BeyondTheYellowRibbon.org
Minnesota Wild - Wild vs Jets When: Sep. 27, 7 p.m.
Minnesota Wild - Wild vs Penguins When: Sep. 29, 7 p.m.
Minnesota Wild - Wild vs Blues When: Oct. 4, 7 p.m.
Minnesota Wild - Wild vs Coyotes When: Oct. 23, 7 p.m.
Minnesota Wild - Wild vs Sharks When: Oct. 30, 7 p.m.
Minnesota Wild - Wild vs Sabres When: Nov. 13, 7 p.m.
Where: Excel Energy Center, St. Paul
About: Tickets for groups of 8 or more are available for purchase on
a first come, first served basis. All military personnel can purchase a
Lower Level single attack Corner or Endzone ticket for select home
games for $50 each. Individual tickets will be available at a later
date. To secure tickets, contact Lindsay Weier, 651-312-3495,
[email protected] This e-mail address is being protected from spam-
bots. You need JavaScript enabled to view it
More Info: Website
Lowell Huber Memorial Ride When: Sep. 28, 2014 Registration starts at 9 a.m. Kickstands up at
11 a.m.
Where: Apple Valley American Legion Post 1776
About: Ride in the Lowell Huber Memorial Ride beginning at the
Apple Valley American Legion and support Beyond the Yellow Rib-
bon, one of Lowell's favorite charities.
More Info: Flyer
St. Croix Festival Theatre - Military Discount When: Oct. 2 through Oct. 26, 2014
Where: St. Croix Festival Theatre, St. Croix Falls, WI
About: Sip a glass of wine and watch professional theatre in a histori-
cal building. The St. Croix Festival Theatre is offering a 10% mili-
tary discount to the performance of "The Miser".
More Info: Flyer
Rockie Lynne Concert When: Oct. 6, 7 p.m.
Where: Chisago Lakes High School Performing
Arts Center
About: See Rockie Lynne in concert for "Support
Our Troops". Admission: Bring items for our Ser-
vicemembers serving in Afghanistan and Kuwait.
More Info: Flyer
Beyond the Yellow Ribon Kick-Off Event When: Oct. 18, 9 a.m. to 10:30 a.m.
Where: Starfire Event Center, Waseca
About: Waseca is beginning the process of becom-
ing a Yellow Ribbon City and County. Please join
this important Kick-Off event. See the attached
flyer for areas that still need support for a success-
ful committee to form.
More Info: Flyer
Disney on Ice presents Worlds of Fantasy When: Dec. 11 to 14, 2014
Where: Xcel Energy Center, St. Paul
About: Rev up for non-stop fun with four of your
favorite Disney stories at Disney on Ice presents
Worlds of Fantasy. Thrill to high-speed stunts as
Lightning McQueen, Mater and the crew of Dis-
ney/Pixar's Cars race across the ice.
More Info: Flyer
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11
MILITARYONE-SOURCE ARTICLE
Should I Buy My Home or Rent?
Not so long ago, just about everyone seemed to regard home ownership as a no-brainer route to wealth. If you
were still renting, is was only until you could save up money for the down payment—if you even needed one.
The bursting of the 2000s real-estate bubble shook such assumptions to the core. For the period from 2006 to
2011, at least, renting looked like a much smarter investment than owning.
So is owning a home a bad bet? Only time will tell, but recent history has driven home the point that home own-
ership isn’t for everyone. If you’re thinking of buying a home for the first time, you need to ask some ques-
tions—about finances, future plans and lifestyle choices. Here are some of the most important ones:
How long will I be staying?
Owning a home can be a profitable investment in the long run, if your timing is right. But if you’re not ready to
put down roots, you can lose a lot of money. “Buying (a home) has some not-so-hidden costs, like closing costs,
and if you’re not staying, they can really jack up what you’re paying,” says financial writer and editor Virginia
Morris. Morris, co-author of several personal-finance books including the Wall Street Journal Guide to Under-
standing Money and Investing, says renting usually is smarter if you’ll be moving every couple of years. That’s
something to consider, for instance, if your job situation looks iffy or if you want to change employers.
Just how long is long enough depends on a number of factors, not just the price of the home, the closing costs
and the interest rate on the loan, but also ongoing costs like property taxes, upkeep and insurance, as well as the
income you would get from investing money that would otherwise go into a down payment. And don’t forget
the costs of selling a house, which include (but don’t end with) commissions paid to a real estate agent. As we’ll
see below, you can plug all these numbers into a calculator to see how long it might take before you can “break
even” on ownership vs. renting.
What’s my tax bracket?
The mortgage interest deduction is one of the last real tax breaks available to most Americans. But it benefits
some taxpayers more than others. Those in higher tax brackets get the bigger bang for their mortgage bucks. If
you’re in the 33 percent federal bracket, for instance, you’ll pay just 67 cents after taxes for every dollar of in-
terest. Taxpayers in the 10 percent bracket pay 90 cents on the dollar after the deduction. Owning a home may
still be a good idea if you have a modest income (and have enough deductible expenses to itemize them), but
the tax break is most dramatic for high earners.
Another tax break, though, is a boon to all homeowners, particularly those who don’t own million-dollar man-
sions. This is the exclusion from taxes (up to $500,000 for a married couple) of the capital gains from the sale
of one’s main residence.
12
MILITARYONE-SOURCE ARTICLE
Should I Buy My Home or Rent?
Do I really want the lifestyle?
Strange as it may seem to the hard-core suburbanite, not everyone hankers for the responsibilities of owning a
home. And you don’t have a landlord to complain to anymore. “I have a friend who gets out of the city and breaks
out in hives at the thought of all that space,” Morris says. “He’ll never own a home.”
Ownership costs go well beyond cleaning the rain gutters and mowing the lawn. You’ll pay property taxes, which
are tax-deductible, and a number of non-deductible costs such as insurance and bills for utilities, sewers and other
public services. Then there’s the constant fight against wear and tear. Experienced homeowners know that repaint-
ing, re-carpeting and the countless other repair and renovation tasks can cost a lot over time. One rule of thumb is to
figure on average annual upkeep costs of about 1 percent of a home’s value. As a middle ground between renting
and full-fledged home ownership, you might consider a condominium or co-op, which give you apartment-style or
townhouse settings with an ability, as in single-family homes, to build up equity.
Equity is probably the biggest plus in owning a home. As a home increases in value over the years, your wealth in-
creases as well, as long as you do not increase the amount you’ve borrowed on the home. But as everyone knows
by now, home values also can fall and wipe out all your equity. Millions of homeowners have found themselves
“under water”—owing more than their homes are worth. In addition to the widespread slump in housing of the past
decade, home markets have also seen prolonged regional downturns in the past. And a poorly located home will lag
even in a strong market.
To make the rent-or-buy decision, you first need to be able to buy; that means having enough money for a down
payment. Then, you can weigh all the factors with one of the many Web-based calculators designed for this pur-
pose. Do some research, especially in your local housing market, because factors such as property taxes and appre-
ciation in home values can vary greatly from place to place.
Resources
Books:
Home Buying for Dummies, fourth edition by Eric Tyson and Ray Brown (John Wiley & Sons, 2009) has a chapter
on the rent-or-buy decision.
On the Web:
Many sites have calculators designed to compare the financial outcomes of buying or renting. Try Yahoo’s at
http://list.realestate.yahoo.com/re/calculators/rent.html.
For the National Association of Realtors’ current data (up to the most recent quarter) on median home prices by
metropolitan area, go to http://www.realtor.org and click the “Research” link. Then click “Housing Statistics” and
“Metropolitan Area Prices.”
13
MILITARYONE-SOURCE ARTICLE
Shopping for a Mortgage
Obtain Information from several lenders Home loans are available from several types of lenders—thrift institutions, commercial banks, mortgage companies,
and credit unions. Different lenders may quote you different prices, so you should contact several lenders to make sure
you’re getting the best price. You can also get a home loan through a mortgage broker. Brokers arrange transactions
rather than lending money directly; in other words, they find a lender for you. A broker’s access to several lenders can
mean a wider selection of loan products and terms from which you can choose. Brokers will generally contact several
lenders regarding your application, but they are not obligated to find the best deal for you unless they have contracted
with you to act as your agent. Consequently, you should consider contacting more than one broker, just as you should
with banks or thrift institutions.
Whether you are dealing with a lender or a broker may not always be clear. Some financial institutions operate as both
lenders and brokers. And most brokers’ advertisements do not use the word “broker.” Therefore, be sure to ask whether
a broker is involved. This information is important because brokers are usually paid a fee for their services that may be
separate from and in addition to the lender’s origination or other fees. A broker’s compensation may be in the form of
“points” paid at closing or as an add-on to your interest rate, or both. You should ask each broker you work with how
he or she will be compensated so that you can compare the different fees. Be prepared to negotiate with the brokers as
well as the lenders
Obtain all important cost information Be sure to get information about mortgages from several lenders or brokers. Know how much of a down payment you
can afford, and find out all the costs involved in the loan. Knowing just the amount of the monthly payment or the in-
terest rate is not enough. Ask for information about the same loan amount, loan term, and type of loan so that you can
compare the information. The following information is important to get from each lender and broker:
Rates
Ask each lender and broker for a list of its current mortgage interest rates and whether the rates being quoted are the
lowest for that day or week.
Ask whether the rate is fixed or adjustable. Keep in mind that when interest rates for adjustable-rate mortgages go
up, generally so do the monthly payments.
If the rate quoted is for an adjustable-rate mortgage, ask how your rate and loan payment will vary, including
whether your loan payment will be reduced when rates go down.
Ask about the loan’s annual percentage rate (APR). The APR takes into account not only the interest rate but also
points, broker fees, and certain other credit charges that you may be required to pay, expressed as a yearly rate.
Points
Points are fees paid to the lender or broker for the loan and are often linked to the interest rate; usually the more points
you pay, the lower the rate.
Check your local newspaper for information about rates and points currently being offered.
Ask for points to be quoted to you as a dollar amount—rather than just as the number of points—so that you will
know how much you will actually have to pay.
Fees
A home loan often involves many fees, such as loan origination or underwriting fees, broker fees, and settlement (or
closing costs). Every lender or broker should be able to give you an estimate of its fees. Many of these fees are negotia-
ble. Some fees are paid when you apply for a loan (such as application and appraisal fees), and others are paid at clos-
ing. In some cases, you can borrow the money needed to pay these fees, but doing so will increase your loan amount
and total costs. “No cost” loans are sometimes available, but they usually involve higher rates.
14
MILITARYONE-SOURCE ARTICLE
Shopping for a Mortgage
Ask what each fee includes. Several items may be lumped into one fee.
Ask for an explanation of any fee you do not understand. Some common fees associated with a home loan closing
are listed on the Mortgage Shopping Worksheet.
Down payments and private mortgage insurance Some lenders require 20 percent of the home’s purchase price as a down payment. However, many lenders now offer
loans that require less than 20 percent down—sometimes as little as 5 percent on conventional loans. If a 20 percent
down payment is not made, lenders usually require the homebuyer to purchase private mortgage insurance (PMI) to
protect the lender in case the homebuyer fails to pay. When government-assisted programs like FHA (Federal Hous-
ing Administration), VA (Veterans Administration), or Rural Development Services are available, the down payment
requirements may be substantially smaller.
Ask about the lender’s requirements for a down payment, including what you need to do to verify that funds for
your down payment are available.
Ask your lender about special programs it may offer.
If PMI is required for your loan:
Ask what the total cost of the insurance will be.
Ask how much your monthly payment will be when the PMI premium is included.
Obtain the best deal that you can Once you know what each lender has to offer, negotiate the best deal that you can. On any given day, lenders and
brokers may offer different prices for the same loan terms to different consumers, even if those consumers have the
same loan qualifications. The most likely reason for this difference in price is that loan officers and brokers are often
allowed to keep some or all of this difference as extra compensation. Generally, the difference between the lowest
available price for a loan product and any higher price that the borrower agrees to pay is an overage. When overages
occur, they are built into the prices quoted to consumers. They can occur in both fixed-rate and variable-rate loans
and can be in the form of points, fees, or the interest rate. Whether quoted to you by a loan officer or a broker, the
price of any loan may contain overages.
Have the lender or broker write down all the costs associated with the loan. Then ask if the lender or broker will
waive or reduce one or more of its fees or agree to a lower rate or fewer points. You’ll want to make sure that the
lender or broker is not agreeing to lower one fee while raising another or to lower the rate while raising points.
There’s no harm in asking lenders or brokers if they can give better terms than the original ones they quoted or than
those you have found elsewhere.
Once you are satisfied with the terms you have negotiated, you may want to obtain a written lock-in from the lender
or broker. The lock-in should include the rate that you have agreed upon, the period the lock-in lasts, and the number
of points to be paid. A fee may be charged for locking in the loan rate. This fee may be refundable at closing. Lock-
ins can protect you from rate increases while your loan is being processed; if rates fall, however, you could end up
with a less-favorable rate. If that happens, try to negotiate a compromise with the lender or broker.
Remember: Shop, compare, negotiate When buying a home, remember to shop around, to compare costs and terms, and to negotiate for the best deal. Your
local newspaper and the Internet are good places to start shopping for a loan. You can usually find information both
on interest rates and on points for several lenders. Since rates and points can change daily, you’ll want to check your
newspaper often when shopping for a home loan. But the newspaper does not list the fees, so be sure to ask the lend-
ers about them.
15
Source: Home Buying for Dummies, second edition, by Eric Tyson and Ray Brown. For Dummies, 2001; The Mortgage Kit, fifth edition, by Tom Steinmetz. Dearborn Publishing, 2002.
By Tom Gray
MILITARYONE-SOURCE ARTICLE
Financing a Home Without
Busting Your Budget
Let’s say you want to put down roots, say goodbye to landlords and start taking the mortgage-interest tax deduc-
tion—in short, you want to buy a home. Now can you afford it? The answer to that question is multifaceted. It de-
pends in part on the real-estate market and interest rates, 2 factors outside your control. But you can still do a lot to
bring the prize of home ownership within reach.
Here are some tips from home finance experts on financing a home without getting in over your head:
Get your own financial house in order. Before you consider buying a home, you have to make sure you can
live within a budget. (It’s a good sign if you’ve been able to save enough for a full down payment—20 percent of the
price—out of your own regular income). Look at your own record as a borrower. Have you been able to pay bills on
time? Do you have a reliable source of income? You’ll need it.
Know all the costs. The cost of a home is not just the down payment and monthly payments on your mortgage.
It also includes “closing” costs at the time of purchase (typically several thousand dollars), annual property taxes,
insurance and upkeep. Taxes are typically 1.5 percent, sometimes much more. As for maintenance, Eric Tyson and
Ray Brown, in their book Home Buying for Dummies, say you should figure on spending an average of 1 percent of
the home’s purchase price yearly.
Learn the ropes. The huge variety of loans—fixed-rate, adjustable-rate, hybrid, conforming, jumbo, govern-
ment-sponsored—can be bewildering. But you can make this marketplace work for you if you educate yourself.
“You really need to understand the available products, you need to understand the process, and you need to under-
stand what lenders want from you,” says Tom Steinmetz, a mortgage industry veteran and author of The Mortgage
Kit. If you want to see yourself as lenders see you, purchase a copy of your credit report and score, along with advice
on how to improve it (see Resources below).
Stay focused, but shop around. Steinmetz urges would-be homebuyers to decide first on a specific type of loan
(like a 30-year fixed rate instead of an ARM), then canvass lenders and brokers to find out which one offers the best
rates. Focusing tightly on a particular product keeps you from getting tangled up in apples-and-oranges comparisons.
And don’t forget to ask your real estate agent about federal, state and local programs aimed at helping first-time
homebuyers. Steinmetz says there are plenty of these, and you may qualify.
Shop for a loan that fits your personality and plans. Should you go fixed-rate or variable? That depends, at
least in part, on your attitude toward risk. With variable loans (such as ARMs), you assume more risk from interest-
rate fluctuations but you get a lower rate, at least initially, in return. A fixed-rate loan gives you more security, and it
may also save you money if you’re borrowing at a time when rates are near historic lows.
Be ready to negotiate. Rates and other loan provisions aren’t set in stone. If you’re working with one lender or
broker and you’ve found that another one offers the same product for a quarter-point less, don’t be afraid to ask for a
lower rate. Loan officers have some flexibility, Steinmetz says.
Be skeptical of “no points” deals. “Points” are simply an extra interest charge tacked on by lenders at the point
of purchase. You can get loans without them, but there’s a catch—the interest rate is invariably higher. For the aver-
age buyer, who stays for about seven years, it’s usually worthwhile to take the lower interest instead. “Look at that
horizon,” says Newport Beach, Calif., mortgage broker and author Randy Johnson. The longer you hold the mort-
gage, he says, the more the interest-rate break outweighs the points.
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HEALTHY MONEY HABITS ADVENTURES IN HOME
BUYING One of the best practices before buying a house is to take a
Personal Finance class. I wish we would have done that be-
fore we came down with epic cases of “house” fever and
“dog” fever. This article is not intended to pass judgment on
anyone outside of my family. Everyone is entitled to make
their own choices. Here is our story and it is full of regrets.
When my husband and I got married in 2006, we were two broke college kids (23 & 22). We spent a very cold
year in a small brick apartment. We were in love and under a lot of stress. Rather than fixing ourselves and our
relationship, we decided to get a dog. Somehow, we thought a puppy would solve all of our problems. We were
both working part time jobs and in college. Instead of getting a dog from a shelter, we decided to go with a pure-
bred Golden Retriever from a breeder for $550. I was working for around minimum wage, so do the math on how
many hours it took to pay for the little guy. He wasn’t born yet and since we were getting a dog, we decided he
needed a house.
Yep, the story keeps getting better. So as expectant puppy parents, we went house shopping. We had a tight time-
line and the realtor could smell our desperation. In 2007, bankers would gladly give zero-down loans to anybody
that breathed, especially two broke college kids without full-time jobs. We also had well-meaning broke unhappy
adults trying to convince us to get additional loans to fix up the house. Our realtor also told us that closing costs
could be covered by the seller and they were usually $1,200. It was the height of the real estate bubble and while
there were houses on every corner, they were being gobbled up and the prices were inflated.
We finally found the “one.” We put in an offer right after it was listed and then waited. Our realtor called us
while we were at Camp Ripley to say that we were in a bidding war. The plot thickened. We eventually decided
to offer the max of what we had been approved for and cover the closing costs ourselves.
We got the call that we were
the highest bidder for the
house and would receive our
closing date soon. After my
serving shift on a Thursday, I
listened to the voicemail on
my phone from the closing
company. We were sched-
uled to close on Monday
morning and had to bring a
check for $3,461. $3,461. I
replayed the message several
times and cried the entire way
home with $34 in tips in my
pocket.
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I figured the situation out and we got
through the closing. Then we got our sec-
ond devastating call of the week. There are
lots of inspections that take place when
buying a home. The house had old knob
and tube wiring and a new breaker box, so
our realtor told us that is would pass the mortgage company’s inspection, which it did. We did not know that the
insurance company also had criteria that needed to be met. The agent said that we would have to get all wiring
redone within 30 days. My heart sank. I felt like super woman coming up with twice our monthly income on
short notice and now this was thrown on my lap. I was emotionally spent. We were either too proud or dumb to
ask everybody we knew with electrical skills to help us solve the problem for a few hundred dollars in supplies
and instead hired an electrician that provided us with a $4,000 bill,
just to disable the wiring and put up basic lights.
So in the midst of all of these adventures with our new house and
moving, we get our new puppy. They are expensive and destroy
everything, so we thought we should get another one. We got his
little brother two weeks later for another $550 and used our credit
card, since we were beyond broke. I should also mention that we
spent $1,300 on vet bills that first year too.
We love our dogs, but had we paused college, stayed in our apart-
ment, worked like crazy, paid off debt and filled our savings account,
we would have been much better off. After the housing crash, we
would have been able to easily put twenty percent down and avoided
the $50 per month private mortgage insurance. We could have taken
advantage of the $8,000 first-time home buyer’s credit and cut our
interest rate in half, saving $3,000 a year. I also would have been
eligible to use my husband’s education benefits later (saving 30k in
student loans) and we would have been debt-free that year instead of
nine years later. That statement feels like a sucker punch. We have
been chasing our tails for years trying to fix mistakes that took place in a very short amount of time.
Hopefully, this story is a cautionary tale about the perils of going deeply in debt and not having an emergency
fund.
After we submitted an offer on the “one,”
a well-meaning mother-in-law convinced
us that we just had to go see a property
owned by one of their friends that was
about to go on the market. It was an over
-improved, was on a busy street, didn’t
have a yard or basement, and had a
crooked foundation. It also had a brand
new Harley Davidson themed giant ga-
rage with several expensive motorcycles.
One of the owners was a motorcycle me-
chanic. My husband was a kid in a candy
store and I was livid. I understood how
he felt, but we were contractually obli-
gated to the other property. He didn’t see
it that way. He said we picked the wrong
house. The fight on the way back to our
apartment was epic. I believe they were
asking $110,000-130,000 and today the
house is worth may be worth $90,000.
HEALTHY MONEY HABITS ADVENTURES IN HOME
BUYING
18
The first remodeling project we undertook
was unintentional. Well, sort of. We just
had our first child and shortly after my hus-
band left, my mamma bear instincts took a
turn to the dark side. Our precious little one
wasn’t sleeping, so we spent many nights
watching home improvement shows.
Lesson #1: Don’t watch home improvement shows, especially if your income just increasing.
The entry way of our house is also where our kitchen and basement stairs meet. Option #1: spend $100 to put a door
at the top of the stairs. Option #2: Open up the entryway and put it a new floor for $1,300. I called the contractor
and set the course for what would be a very expensive domino effect.
Lesson #2: Choose linoleum!!! Translation: weigh the costs & benefits of the
costs of different types of materials.
The whole process would be simple. The first days of my husband’s R&R, we
would demolish the entryway and then the contractors would install the dry-
wall and new floor while we were on a trip. Two hours into the trip, the con-
tractors called. While linoleum can be installed on an uneven floor, fancy tile
cannot. There were several layers of old flooring under our old linoleum and
the very bottom layer was rotten wood (also known as a subfloor). Since it
had to be removed, our built-in cabinets did as well. Since the cabinets were
connected to plaster and lath walls, the lower half of our walls was removed
too. This change of dramatically increased the amount of tile needed, since tile
would not have gone under our cabinets with the old layout and increased the
cost of labor and supplies.
We came home to a beautiful tile floor, a half torn out kitchen, and a $4,000 bill (original plan was $1,300). We de-
cided that the best course of action was to spend the rest of his R&R tearing out the remaining cabinets and plaster
and lath. This left me without a kitchen during the remaining six months of the deployment. I was also forbidden
from putting in cabinets myself.
Fast forward six months later and we had cabinet company give us a $10,000 quote for new cabinets, plus the cost
of installation. After much debate involving well-meaning in-laws, we chose the DIY route. We spent about $2,000
on IKEA cabinet and counters initially and another $1,000 on upgrades along the way. I love my cabinets and I love
that I can change them. My spice drawer is magazine worthy.
It took over a year and many stressful IKEA trips to get everything. Living three hours away didn’t help either. We
survived and learned many lessons that we used for our next project.
HEALTHY MONEY HABITS
A TALE OF TWO REMODELS
Once upon a time, I went to the tile store… I found some tile that was too big and then I found some tile
that was too small and then I found some tile that was just right, except for the price. Linoleum would have cost around $150, basic tile around $400, but I wanted the fancy tile, so it was $1,200. It just so happened that the only batch big enough left in the country was in Michigan and
it would cost an extra $400 in freight charges.
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Lesson #3: Save in advance and create a budget for the re-
modeling project.
We started our bathroom remodel at the beginning of the sum-
mer after setting aside money from every paycheck for over
six months.
Lesson #4 Open a separate checking account for a big project.
In hindsight, I wish I would have opened a separate checking
account to make tracking expenses easier. Our budget was
$4,000. To date, we have spent $4,001. I have lots of left-
over things to sell on Craigslist. We made some really big
changes mid-project and had to adjust accordingly.
Lesson #5: Keep building codes in mind when designing the
layout.
We had several hiccups in regards to the layout of our small
bathroom complying with codes. It was helpful to have
knowledgeable professionals to help.
Lesson #6: It is difficult to project the costs of plumbers/
electricians when remodeling an older home.
We shopped Craigslist and clearance racks for as many of the
supplies as we could. We also downsized some of the things
we had planned to accommodate increased costs in other ar-
eas.
Lesson #7: Don’t forget the cost of supplies like screws &
saw blades.
The increased costs we encountered were mainly for things
like screws and saw blades and other supplies that were diffi-
cult to budget for. It seemed like every day we would stop at
the home improvement store at least once, which is why hav-
ing a separate checking account would have been helpful, es-
pecially when returning things.
Lesson #8: Have an emergency fund.
Part of the reason our bathroom project went so well, was be-
cause we had extra money set aside.
HEALTHY MONEY HABITS
A TALE OF TWO REMODELS
20
Taken from remodeling.hw.net
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RESOURCE LINKS ARMY / NATIONAL GUARD minnesotanationalguard.com armyonesource.com militaryonesource.mil CHILDREN ADAPT: cehd.umn.edu/fsos/adapt operationwearehere.com mnchildcare.org ausa.org/family mdva.state.mn.us/child guardfamilyyouth.org militarykids.org DISCOUNTS beyondtheyellowribbon.org military.com/discounts/category EDUCATION education4military.com gibill.va.gov militaryonesource.mil militarychild.org EMPLOYMENT esgr.org mn.gov/deed FMLA: dol.gov/whd/fmla HEALTH / MENTAL HEALTH tricare.mil militarymentalhealth.org Counseling 24/7: militaryonesource.mil MARRIAGE AND RELATIONSHIPS Marriage Retreats: strongbonds.org militaryonesource.mil PARENTS OF SOLDIERS bluestarmoms.org operationwearehere.com/Parents.html PET CARE dogsondeployment.org netpets.org guardianangelsforsoldierspet.org SPOUSES & SIGNIFICANT OTHERS militarysos.com spousebuzz.com milspouse.com msccn.org nationalmilitaryspousenetwork.org STRESS MANAGEMENT militaryonesource.mil defense.gov/specials/stressawareness
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