Indy Home Marketing Newsletter

January 2012 Newsletter

Volume 6, Number 1

Click HERE to use your internet browser to read and view the web version of this newsletter.


	Four Real Estate Market Predictions for 2012 Each year at this time, economists, market analysts, banks, and others release housing market predictions for the New Year. However, with so many varied predictions, which ones are most likely to be correct? We believe Freddie Mac (one of America's biggest buyers of home mortgages) and The Indiana
	Business Review (a publication of Indiana University's Kelly School of Business) have forecast what's most likely to characterize the 2012 housing market in central-Indiana. Here are 4 excerpts from their predictions: Low Mortgage Rates - Currently, mortgage rates are at historic lows... with fixed 30-year and 15-year rates at just 4.125% and 3.5% respectively. Five-year adjustable-rate mortgages are equally low at 3.01%. Noting that Federal Reserve policy (that drives mortgage rates) is expected to remain relatively unchanged in 2012, mortgage costs are predicted to stay at record lows through most of the year. More

		7 Little-Known Things That Can Hurt Your Credit Score... Before the computer era, consumers would go to their local banker and provide information on their assets and debts to show that they could afford the home loan they were seeking. However, in the 1970's,
	credit scores began being used. They’re based on consumers’ credit histories and estimate the probability consumers will pay back their loans. The most widely used credit score is the FICO score. Created by the Fair Isaac Corp., FICO scores are three numbers rang- ing from 300 to 850. A score of 720 is considered good. Con- sumers with lower scores may be charged higher interest rates or denied loans. Continued Here

RECIPE OF THE MONTH

Sausage Lasagna

Here's a delicious entree that
serves up to eight and will
delight your taste buds.
Courtesy: Food Network

INGREDIENTS:

•	1/2 cup finely chopped onion	•	2 scallions, chopped
•	Pinch crushed red pepper flakes	•	1/4 cup dry red wine
•	1/4 teaspoon grated nutmeg	•	2 cloves garlic, minced
•	1 (28-ounce) can crushed tomatoes
•	1/2 cup chopped fresh basil leaves, plus 2 whole sprigs
•	Kosher salt and freshly ground black pepper
•	1 (16-ounce) container 1 percent low-fat cottage cheese
•	1 (15-ounce) container part-skim ricotta cheese
•	8 ounces lean sweet Italian-style sausage
•	9 sheets no-boil lasagna noodles, 5 1/2-ounces
•	1 1/2 cups part-skim shredded mozzarella cheese, 6 ounces
•	1 (10-ounce) box frozen chopped spinach, thawed and squeezed dry

DIRECTIONS:

Preheat the oven to 350 degrees F. In a small pot bring
the tomatoes, wine, whole basil sprigs, garlic, red pepper
flakes, and salt and pepper, to taste, to a simmer; cook
until slightly thickened, 10 minutes; set aside. Continued

Four Real Estate Market Predictions... (continued)

Housing will Remain Affordable - Indiana is now ranked as one
of the most affordable housing markets in the nation. With
expected downward pressure on home prices to continue
through most of 2012, housing affordability is predicted to
remain at or near record levels.

Home Prices Will Bottom - The housing price index is forecast
to dip another 1% in 2012, making this the sixth consecutive
year of declines. Increased foreclosures and short sales will
be the major cause. However, expect modest home equity
gains of 2% or more in 2013.

Market Recovery will be Slow - Home sales in the U.S. and in
Indiana will likely see modest gains in 2012, but with the
broader economy continuing to struggle, this growth will
be modest. Return to Top

7 Little-Known Things That Can Hurt
Your Credit Score... (Continued)

FICO scores are based on these criteria: payment history,
35 percent; outstanding balances, 30 percent; length of
credit history, 15 percent; new credit, 10 percent; and types
of credit, 10 percent. Most people know that late payments,
collection agency activity, a home foreclosure or a bank-
ruptcy will lower a credit score. Here are some lesser-
known items that also could reduce your credit score:

Closed Accounts

Three credit bureaus track your credit activities: Equifax,
TransUnion and Experian. They get reports from your
creditors about what you owe and how you pay. If you close
accounts, your credit score could be affected. FICO scores
are sensitive to how much activity occurs in a consumer’s
credit history record, the total amount of credit a consumer
has and the length of the consumer's credit history. A good
plan for closing some accounts is to pay down other
balances first, close the new accounts first and
keep some accounts open.

High Credit Card Balances

About a third of your credit score is based on your outstand-
ing debt. If you owe more than 30 percent of the limit of
what you can charge on your credit cards, your credit score
could be affected. It's a good idea to watch your balances.
For example, you should not charge more than $3,000
on a card with a $10,000 limit.

Too Many Credit Cards Or Loans

Applying for too many credit cards or loans during a short
period of time can trigger a reduction in your FICO score.
It’s good to spread out your applications over a two- to
three-week period. If you’re applying for a car loan or a
mortgage at a number of lenders, do it within a 14- to
30-day period because the FICO model counts these
applications as one inquiry.

Other People’s Debt

If you’re a co-signer on a loan or credit card with an adult
child, friend or relative, it will cause problems with your
credit score if they don’t pay the amount owed.

Retail Credit Cards

Be careful when your favorite department or big-box store
offers you a 10 or 15 percent reduction on your purchase if
you sign up for a credit card with them. Retail credit cards
aren’t looked on as favorably as installment debt, such as
an auto loan. It could reduce your credit score.

Identity Theft

If a scammer gets your private information and maxes out
your credit cards, your credit score will dive. However,
credit bureaus have a procedure for removing information
based on fraud. Once that’s taken care of, your credit
score will go back to an accurate rating. Note that if you
are a victim of identity theft, you need to take action right
away. Put a freeze on your credit report at all three credit
bureaus, contact the police and let the credit bureaus know
so they can start removing fraudulent information.

Creditor Negotiations

If you have high credit card debt, you may want to talk
with your creditors about reducing your interest rate and
other help. Your credit score may go down the first year
because you’re paying off accounts and closing them.
However, it will go up again as creditors report you’re
paying your balances on time. If you’re knowledgeable
about how credit scores are used, it’s more likely you’ll
avoid problems when you apply for a loan.

Part of being credit score savvy is reviewing your credit
history each year so that you can correct any errors that
may affect your FICO score. AnnualCreditReport.com is
the only authorized source for the free annual credit
report that’s yours under the law. Watch out for com-
panies which have similar names that charge money.

While it may be helpful to know your FICO score, you’ll
probably have to pay for it. And, it’s possible that the
score you buy isn’t that accurate. A survey by Consumer
Reports showed that 11 credit scores they bought for a
consumer varied within a range of 72 points.

Another way to get your FICO score is to ask a lender
you’ve worked with for it. Some will provide the infor-
mation, while others refuse to give it out. Return to Top

Sausage Lasagna... (Continued)

Meanwhile, puree the cottage cheese in the bowl of a food
processor until smooth. add the ricotta, spinach, 1/4 cup
chopped basil, scallions, nutmeg, and salt and pepper and
pulse until just combined; set aside.

Coat a large nonstick skillet with nonstick cooking spray set
over medium heat. Cook the sausage and onion, breaking it
up with a wooden spoon into small pieces, until the meat is
browned and the onion tender, 10 minutes.

Assemble the lasagna: Mist a 9-inch by 13-inch baking dish
with nonstick cooking spray. Spread 1/2 cup tomato sauce on
the bottom of the prepared baking dish. Top with 3 noodles,
half the ricotta mixture, half the sausage and 1/2 cup shred-
ded mozzarella cheese. Repeat layers with sauce, noodles,
remaining ricotta and sausage and 1/2 cup mozzarella cheese.
Top with remaining noodles and sauce. Cover with aluminum
foil and bake until the noodles are tender and the sauce is
bubbling around the edges of the pan, 1 hour.

Uncover, sprinkle with remaining mozzarella cheese and con-
tinue to bake until melted, 10 minutes. Let stand 15 minutes.
Sprinkle with remaining 1/4 cup basil. Serve.

NOTES:

Only a small amount of sausage is needed to give big meat
flavor to this lasagna. We kept a thick fluffy cheese layer by
combining part-skim ricotta with low-fat cottage cheese and
a lesser amount of part-skim mozzarella cheese. Fresh basil
in the sauce and cheese filling keeps this tasting light
and fresh.

Return to Top