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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-

cey.l.holley2.mil@mail.mil 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, stacey.l.holley2.mil@mail.mil 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,

lweier@wild.com 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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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.

16

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

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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

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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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