Planning Ahead for a Disaster
Is your family prepared with supplies and necessities? Does everyone know how to stay in contact if separated? Do you have a backup plan if you lose power for a day or more? There are many things to consider as you plan ahead in case of an unexpected disaster. Since this task can be a bit daunting, the Federal Emergency Management Agency (FEMA) website has many tools to assist you in preparing.
To give you a head start, we have summarized steps you can take in preparation for a disaster taken from both FEMA and the American Red Cross.
- Be familiar with what types of disasters could occur where you live. Research what you need to do when planning.
- Find out what disaster plans are in place in your community, workplace, schools, etc. You will then know what to expect wherever you and your family members may be located.
- What are the warning signals you might see or hear in your area if a disaster occurs?
- Check with your insurance company and, if necessary, change or update your policy in order to have adequate coverage.
- Create a plan with your family and make sure everyone understands how you will handle both
- shelter-in-place
- and an evacuation.
- Pick two meeting places for your family in the event you are separated.
- Designate someone out of state to be the main contact for your family and make sure everyone knows their information.
- Be sure to include any household pets in your planning.
- You should always keep emergency numbers posted. This is especially important for children as it is normal to become a bit flustered during an emergency.
- Learn ahead of time how to turn off the main utilities in your home.
- Keep a copy of all vital medical, insurance, and family records in a safe and easily accessible location.
Planning ahead can help reduce the stress you may experience worrying about how a disaster will affect you and your loved ones. It's important to take time now to prepare.
The Pickens plan
In a letter from Pickens printed in the Wall Street Journal, he says "there are two numbers everybody should keep in mind. The first is 70% - that's how much of our oil comes from foreign nations. The second is $700 billion - that's how much of our money is sent overseas to pay for that oil every year." But he believes he has the solution - "a blueprint to reduce foreign oil dependence by harnessing domestic energy alternatives and buying time for us to develop even greater new technologies."
While the demand for oil continues to rise, oil production is falling. The expense of oil production keeps increasing and the supply is more difficult to find. However, the Pickens Plan, which is based on using renewable energy sources, will reduce the need to import oil.
The Pickens Plan Solution...
Using wind power and natural gas to produce energy. According to The Department of Energy, 20% of our electricity can be derived from wind power. While building wind facilities that can handle the production of electricity needed would be expensive, it's an investment that would easily payoff in the future. It is a one-time cost and not the ongoing and astronomical expense incurred over the course of each year.
Using natural gas as an energy source for transportation. Natural gas vehicles are already in production and are considered a cleaner form of transportation. The cost of natural gas is much less than diesel or gasoline - a big consideration when dealing with the economy we currently face. The Pickens Plan website states that we "currently use natural gas to produce 22% of our electricity". By using wind power to generate more electricity, we can then put natural gas to use in the transportation industry.
T. Boone Pickens believes that "building new wind generation facilities and better utilizing our natural gas resources can replace more than one-third of our foreign oil imports in 10 years."
An in-depth website, at http://www.pickensplan.com/theplan/, gives you an abundance of information on the Pickens Plan. This includes links for forums, news articles, videos and the ability to sign up as a member.
Takeover of Fannie Mae and Freddie Mac: What does it mean to you?
Treasury Secretary Henry M. Paulson said in his announcement, "Our economy will not recover until the bulk of this housing correction is behind us. Fannie Mae and Freddie Mac are critical to turning the corner on housing." Herbert M. Allison will now head Fannie Mae and David M. Moffett has taken the reins at Freddie Mac.
The two companies, who have funded 70% of home loans in the past few months, have been placed in a "conservatorship" which is similar to Chapter 11 bankruptcy. Combined, both companies have 11,000 employees who have been told there will not be any layoffs. The government has also pledged to invest up to $100 billion per company.
A major goal of the takeover is to lower mortgage rates and make home loans more affordable. As of Monday morning, according to BankRate, the national average on a 30-year fixed mortgage dropped to about 6.2%.
As far as how the takeover will affect your mortgage, below are answers to a few pertinent questions (Source: The Washington Post).
What does the takeover of Fannie Mae and Freddie Mac mean for mortgage rates?The government takeover is expected to push mortgages rates down.
District-based Fannie Mae and Freddie Mac of McLean do not set mortgage interest rates, but they hold significant sway over the market. The firms buy mortgage loans and sell them to investors. The government's backing is expected to make investors more willing to buy the loans and bring rates down as demand increases, analysts said.
"It will make investors more comfortable with the risk of buying these mortgage-backed securities," said Holden Lewis, a reporter for Bankrate, an online research site.
Fannie and Freddie's fees, which are incorporated into interest rates and have become more expensive recently, will also be reviewed as the firms come under new management, said John A. Courson, chief operating officer of the Mortgage Bankers Association, the industry lobbying group. "It is going to have a positive impact on the costs to borrowers," he said.
I already have a mortgage. How will this affect me?It won't. It could affect people who are shopping for loans.
How have Fannie and Freddie's troubles over the past year affected mortgage rates?As the companies' troubles mounted, investors demanded artificially higher interest rates, said Guy Cecala, publisher of Inside Mortgage Finance. "They required a higher yield to buy the securities," he said.
For years, mortgage rates closely followed U.S. Treasury bonds, but they fell out of sync as foreclosure losses mounted, Cecala said. Absent the problems surrounding Fannie and Freddie, rates for the typical 30-year mortgages would be about 5.5 percent or lower; current rates are more than 6 percent.
With the government backing, investors are likely to see investing in mortgages fall back in line with investing in U.S. Treasury securities, analysts said.
When can we expect mortgage rates to drop?No one knows for sure. It could take a day, a few weeks or a month for the takeover to affect rates, analysts said.
It may depend on whether the housing market improves, said James Sahnger, vice president of Palm Beach Financial Network of Stuart, Fla., which tracks mortgage rates. "I think in the short term it will improve modestly," he said. "I don't know [if] we're going to see significant improvement because of the overall risk [remaining] in the housing market."
What is the best way to negotiate a lower interest rate for my mortgage?Same as always: Force lenders to compete for your business. Get multiple offers and have your finances in order to make yourself more competitive, analysts said. "Shop around and get them to bid," Cecala said.
In this market, that also means having a high credit score and a significant down payment. Many lenders now want at least a 10 percent down payment, but borrowers can make themselves eligible for a better interest rate with a bigger upfront investment, analysts said.
To ensure a better rate, borrowers should also weigh whether their mortgage would qualify to be bought by Fannie and Freddie. Congress recently increased the limit of loans that the firms can purchase to $729,750 for single-family homes in high-cost markets, including the Washington area. If the home exceeds that limit, the borrower needs a "jumbo" loan, which remains more expensive.
Mortgage companies have tightened lending standards in the past year. Could the takeover affect those conditions?Debatable. Fannie and Freddie want borrowers with a 750 credit score and a 20 percent down payment, Cecala said. But the government takeover could prompt the firms to bend a bit, he added. If that happens, borrowers could see a shift by the end of the year, Cecala said. "The underwriting standards could be more flexible. They are very rigid now," he said.
But Lewis said any change to lending standards is doubtful. Loosening standards -- even a little -- could spook investors and ultimately cost taxpayers more, he said.
More on energy saves
The Energy Information Administration has predicted that heating oil prices for this season will increase an average of 31 percent. They also expect to see an average of around a 22 percent increase in residential natural gas prices. Some customers have already seen a jump in their utility bills and where you live is naturally a determining factor. For example, those in the mid-west who use heating oil are expecting a 26% increase for the winter and those that use propane are looking at a 13% increase. Residents of Massachusetts have been told to expect about a 30% increase if they use natural gas or oil. The tips below will help you make some updates that will save you money in the both the short and long-term. It's never too soon to begin as the winter season will be here before you know it.
Easy changes to make with relatively low cost.
- Set the thermostat on your hot water heater to 120 degrees.
- Wash full loads of laundry or set the water level to the minimum amount needed.
- Turn off your computer and monitor when not using for longer periods of time.
- Air dry dishes in the dishwasher and wash a full load of dishes.
- Use compact fluorescent light bulbs.
- Install a programmable thermostat if possible. Set your thermostat high in the summer and low in the winter.
- Use power strips for larger electronics such as TVs and stereo equipment. You can quickly and easily turn everything off from the strip.
- Take less baths and more showers, but make them short.
- Unplug appliances when not in use. Obviously, a microwave is difficult to continuously unplug, but for smaller appliances this is easily done.
- Once you've finished charging your cell phones, be sure to unplug the cords. As with all appliances and electronics, they use power even when they're not in use.
- Utilize dimmer switches in many of your rooms and cut down on your lighting costs.
- Motion detectors are perfect for outdoor lighting. The lights come on when needed and save energy when not in use.
- Installing a ceiling fan helps with both heating and cooling.
- With a few tubes of caulk you can keep the air from escaping - often an overlooked waste of energy.
- ENERGY STAR is the name to look for on home appliances and products. This means they meet strict efficiency guidelines set by the U.S. Environmental Protection Agency and the U.S. Department of Energy.
- Replace the exterior doors of your home with better insulated options.
- Upgrade your windows.
- Perform regular maintenance on your furnace and water heater. It helps with wear and tear and they run better and more efficiently.
- Be sure the insulation in your home is sufficient. You can lose a lot of air in places like the attic, crawl spaces or under stairways
Controlling the High Cost of Cool
Here are some of the smartest ways you can control the high cost of keeping your house comfortably cool:
- Dirt and neglect are the #1 causes of system failure.
- If your central air conditioning system needs frequent repairs, or your energy bills are significantly increasing your equipment could be growing old and less efficient. The EPA recommends an annual tune-up from a certified technician
Out with the Old, in with the New
- If your air conditioning equipment is more than 10 years old. Energy Star-qualified air conditioners and heat pumps offer significant long-term energy savings.
- 10-year-old units use at least 20 percent more energy than new standard models.
Bigger isn't Always Better
- When buying a new air conditioner, make sure it is properly sized and installed
- Bigger is not always better. Units with too large a capacity will cost you more and may decrease your home's comfort.
- Hire a qualified, licensed contractor who uses Manual J or an equivalent size-calculation tool.
Consult a Pro
- Find an experienced, licensed contractor before embarking on any heating or cooling overhaul. Visit www.natex.org to find a contractor whose technicians are certified by NATE (North American Technician Excellence), the leading industry-supported testing and certification program.
Save Energy, One Room at a Time
- If your room air conditioner is getting old and needs replacing, consider purchasing an ENERGY STAR qualified model - it will be at least 10 percent more energy-efficient.
- Room air conditioners allow you to cool your home in "zones."
- If there are rooms that do not need to remain cool consistently, keep the doors closed and the air conditioner off to save more energy.
Take Advantage of Special Offers
- Many contractors, utility companies, retailers and manufacturers offer rebates or incentives toward the purchase of energy-efficient products.
- Visit www.energystar.gov to find special
- Watch local advertisements and utility bill stuffers for more options.
Find and Seal Air Leaks
- Hidden gaps and cracks in a home can add up to as much airflow as an open window and can cause your cooling system to work harder.
- Sealing your home's "envelope" - the outer walls, ceiling, windows and floors -- can save up to 10 percent in energy costs.
- Start by sealing air leaks and adding insulation, and be sure to pay special attention to your attic and basement.
Tighten Ducts
- It's common to find gaps between duct joints in a home, whether new or old.
- Have your ducts inspected, sealed and insulated to increase indoor air quality, maximize the movement of cooled air to all rooms of the home, and prevent loss of cooled air to areas between walls, ceilings and floors.
- A typical homeowner could save up to 10 percent on energy bills each year by having his or her ducts sealed.
Got fans?
- Energy Star qualified ceiling fans have optimized fan blades and motors; those with qualified light kits are 50 percent more energy efficient than standard models.
- A ceiling fan doesn't cool a room--it only cools you, through a wind-chill effect against your skin. Be sure to turn off a fan when you leave the room. The pennies it saves add up!
What we can do for you.
"Think of the past in terms of memories of events and accomplishments which were pleasant, rewarding, and satisfying. The present? Well, think of it in terms of the challenges and oppurtunities, and the rewards available for the application of your talents and energies. As for the future, that is a time and a place where every worthy ambition you possess is within your grasp." - Bruce Lee
This says it all about our offices. No matter, we will always do our best in servicing our customers...not for our own selfish delights that bring in money, but because we know that life can be challenging. Buying or selling can be one of the biggest decisions you will ever make, we want it to be the right one. We will use our talents and energies to better your life...because that is who we are.
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