How to Pay for Your Second Home

by Gerri Willis

All things being equal, we’d all pay cash for our second homes. No muss, no fuss. But in reality, many of us will finance at least a portion of the costs of a second home.

And, naturally, as a second-time buyer, you’ll find the process pretty similar to when you got the mortgage for your primary home. The lender will require the same information on your income, W-2s, checking and savings account statements. Plus, the lender will gauge your ability to repay by checking your credit scores and evaluating your total debt levels. That’s where all the similarities to the process of your first mortgage ends.

In fact, you may be surprised how different the process is. You’ll be required to have a higher down payment, as much as 20 percent or maybe more to buy that second home. You’ll face higher rates of interest and that means higher mortgage payments. The reason for these escalating costs is that if you are buying a vacation home, which is to say a property you won’t be living in fulltime, the lender assumes your commitment to paying that mortgage will be a lower priority. By putting down more, you demonstrate your commitment to buying the house and paying it off. Interest rates are higher as well, as much as a quarter to a half point, and for much of the same reason.

The good news is you’ll find lots of different options for financing. Traditional mortgages, 30-year fixed rate loans, are popular for second buyers, but if you can put down 50 percent or more of the purchase price when you buy, you should consider a 15-year mortgage. Paying your debt faster means your interest rate costs will plummet. Adjustable-rate mortgages are still available as well, but with rates near lows, you might as well lock in today’s interest levels, unless you plan to quickly flip the house.

Some folks opt to add a second mortgage, either a home equity line of credit or a home equity loan, onto the mortgage for their primary home to pay for the second house. Understand that doing this puts both of your properties at risk if you were to default. Some seniors use reverse mortgages to tap their home equity but this strategy, too, has problems because you essentially are handing over your primary home to the bank. Soon-to-be retirees are well advised to consider buying that retirement home while they are still working since lenders will calculate your credit worthiness on your pre-retirement income.

In short, there are plenty of options for second home buyers and the good news is that rates remain relatively low.

 

User's Guide to Buying a Beach House

by Gerri Willis

Owning a home on the water is a dream for many of us. Whether your vision is to buy a family destination or an oasis that you occasionally rent out, the good news is that prices in many coastal markets have never recovered from the 2007-2008 crash. When you add into the mix that interest rates are still cheap on a relative basis, well, it’s clear the stars may have aligned to help you accomplish your goal.

The devil, though, is always in the details. Tom Kraeutler, host of the nationally syndicated radio show, The Money Pit, advises buyers to understand the requirements for insurance before signing on the dotted line. Federal flood maps have been redrawn and more properties are required to have federal flood coverage. Add in the fact that insurers have been besieged with claims over the last few years, and you may well be shocked at the amount of coverage you may be required to have.  Average flood insurance claims run tens of thousands of dollars, so it is smart to make sure you have a safety net. Plus, in flood zones the law will require you to have coverage if you have a mortgage.

Other factors to consider: Know whether your beachfront dream has mold or water damage. If major remediation was done to a home, the owners may have filed a building permit. You can check local records to see if that is the case. Otherwise, a good home inspector can help you check for telltale signs of damage. Kraeutler also advises making sure you  know whether local codes require that homes meet wind resistance or flood elevation rules.

And, there are other kinds of issues to consider as you search. If you’re new to the market, you may be surprised at the number of beds packed into houses. Antonia van der Meer, editor-in-chief of Coastal Living magazine, says that it’s not unusual to find even small homes that sleep 20, “Bunk beds are a huge trend and four beds to a room is not uncommon,” she says.

That’s great for big families who want to vacation together, but even if you don’t have a large entourage, you may also appreciate it when it comes time to resell. Beach houses with direct water access and large, bright open spaces typically command the highest premiums.

Getting the best deal means acting decisively and knowing what you want from the start.

 

Best Slow Cooker Recipes For You

Slow-Cooked Chipotle Pork
Directions: In processor, puree 1 med. onion, quartered; 1/2 c. each chicken broth and ketchup; 1/4 c. each chipotles in adobo and creamy peanut butter; 5 cloves garlic; and 2 Tbsp. cocoa until smooth. Sprinkle 1 tsp. salt all over 1 boneless pork shoulder (about 3 to
4 lbs.), quartered; place in 6- to 7-qt. slow-cooker bowl. Pour onion mixture over pork. Cook 5 to 6 hours on High or 8 to 9 hours on Low until pork is tender but not falling apart. Transfer pork to cutting board. Pour sauce into fat separator. When pork is cool enough to handle, remove and discard fat. Pull pork into bite-size chunks. Serve over curly egg noodles along with sauce. Garnish with orange wedges and green onions.
SERVES 8. About 300 cals, 26 g protein, 14 g carbs, 16 g fat (5 g sat), 3 g fiber, 655 mg sodium.

Pecan-Stuffed "Baked" Apples
Directions: Trim bottom 1/4 in. off apples so they sit flat; place in 7- to 8-qt. slow-cooker bowl. In med. bowl, with fingers, combine pecans, cherries, 4 Tbsp. soft butter, brown sugar, allspice, 1/4 tsp. pepper and pinch of salt. Stuff into centers of apples. Pour 3/4 c. apple juice around apples. Cover bowl with lid and cook on Low 4 hrs. or until tender. Serve warm, with ice cream.
SERVES 6. About 285 cals, 1 g protein, 42 g carbs, 14 g fat (5 g sat), 7 g fiber, 95 mg sodium.

 

College Towns, Cities Are Retirement Hot Spots

by Gerri Willis

Like everything else they’ve touched, baby boomers promise to reinvent retirement. And, with 8,000 boomers retiring every day over the next 15 years, they are bound to reshape the second home market. Forget the armchair and the rockers, more and more boomers are opting to retire in cities and college towns where they can have access to museums, free classes, restaurants and a faster pace of living. Plus, many want to downsize and trade in their home and yard for a condo or townhouse.

Pied-a-terre which literally means “foot on the ground” in French is typically a small or undersized apartment capable of doubling as a retirement location. As cities have become safer, boomers have been lured back to metropolitan areas largely because of their entertainment attractions, but also because dwellers can walk their neighborhood and enjoy public transportation. Plus, many parents find they may be closer to the children. Because retirees don’t care about school districts buying in town can be affordable. Buyers should keep in mind that most co-ops try to restrict pied-a-terre purchases.

Another popular option for boomers is buying in a college town because prices are typically low and benefits are high.  Home prices are typically near the median national average price of $212,400 or below and real estate taxes tend to be low. What’s more, many colleges allow seniors to audit courses at no or low cost and attend college sporting events at bargain prices, too. Some developers build retirement communities affiliated with universities in college towns. Kendal Corp., for example, is building such communities in Ithaca, N.Y., home of Cornell University and Hanover, N.H., home of Dartmouth University.

Florida and Arizona may have been traditional retiree havens, but boomers are changing all that, opening up new locations that fit their wallets.    

User's Guide To Buying a Second Home: What To Know Before You Buy

by Gerri Willis

If you've always dreamed of owning a second home, there are two good reasons to think the time may be right to buy now: Interest rates are still relatively low and property prices, while they have climbed, aren't in the stratosphere. In other words, the stars may be aligned for a purchase, but you'll want to do some considerable analysis before taking the plunge.

First, the facts. According to the National Association of Realtors, the market was on fire this year, with purchases up 29.7 percent as buyers benefitted from a rising stock market. The median vacation home price was $168,700 in 2013, up 12.5 percent from the year before. Buyers who considered their purchases an investment paid $130,000, up 13 percent from the previous year. 

So, if it's a roaring market, why should you consider buying now? Well, for one thing, the vacation home market is still well below its peak of 2006. And, the market is a tiny slice of the overall housing market. Even so, it makes sense to do the math before you shop. 

Many second homeowners complain they didn't foresee the costs of having a second home. Sure, there's the monthly mortgage, but ongoing expenses can add up, like, upkeep, insurance and possibly hiring a management company or just a trusted caretaker to look in on the property since you won't be there every day. Flood insurance costs need to be taken into consideration for beach and lakefront buyers, and a redrawing of flood maps by the Government may mean higher costs for some.

Also, consider this: If you aren't paying all cash, financial requirements are higher for second homes than first homes. Typically, you'll need to put down a considerable down payment to buy. Some lenders require borrowers put down 25 percent of the purchase price before writing a mortgage for the balance and the median down payment in 2013 was 26 percent. Keep in mind that, 38 percent of second-home buyers will pay all cash. Among investors, that proportion paying all cash was 46 percent.

I also think it makes sense to decide why you are buying the property in the first place. Is this a vacation only getaway for friends and family? An eventual retirement location? Or, do you plan to rent it out, or even buy it, upgrade and sell? Determining your own motivation in buying will help you pick the right location, and ultimately, the right property.

Every day this week, The Willis Report will be covering some aspect of second home ownership, helping you make the right calculations about where and when to buy and how much to pay. 

How To Make Money Dumping Your Old iPhone

by Gerri Willis

If you are eagerly awaiting Apple’s announcement of the new iPhone 6 tomorrow but are still have an older iPhone model, you’re not alone. Plenty of folks are in the same boat and many will trade up. According to a survey by comScore, nearly a quarter of iPhone 5s owners plan to upgrade.

Fortunately, there are websites that can help you do that. Gazelle, Next Worth and Glyde offer cash to people interested in trading in. Even Apple has a trade-in program. Plenty of people will also sell on sites like eBay and Craigslist.

As long as your phone is in good working order with no broken parts, Gazelle, for example, will offer your hundreds for your old phone. In fact, Alyssa Voorhis, Senior Tech Analyst for Gazelle, says her company has launched its most aggressive price-lock promotion ever: up to $350 for an old iPhone if you lock in a price quote before tomorrow’s announcement. You have until Oct. 10 to send your phone in.

When it comes to trading in, earlier is better than later. Trade-in values typically drop 20 percent in the 60 days surrounding the introduction of a new model.

My advice? Just don’t forget to tell your carrier what you’re doing. The last thing you want to do is continue to pay for service you aren’t using.

Mediterranean Cooking with Bocca Di Bacco

Mediterranean Cooking with Bocca Di Bacco Executive Chef, Kristin Sollenne

 

Gazpacho with Jumbo Lump Crab Meat & Avocado

 

Ingredients

6 peeled plum tomatoes chopped

1 cup watermelon chopped

½ cup cantaloupe melon chopped

2 cucumbers chopped

½ cup celery chopped

2 cup yellow, green and red pepper

¼ cup red onion

1 Jalapeño

½ cup cilantro

¼ cup basil

1 fresh lime squeezed

4 cups tomato juice

1 Tablespoon spoon red vinegar

1 Tablespoon Worcester sauce

1 teaspoon Tabasco

1 cup olive oil

Salt and pepper to taste

 

Add-on’s

1 LB Jumbo Lump Crabmeat

2 Avocados sliced

Preparation:

Blend all ingredients to preferred consistency and serve with crabmeat and avocado slices, sprigs of chives for garnish. The longer you let the gazpacho site, the more flavorful the dish will be.

 

 

 

 

Skewered Jumbo Shrimp, Sautéed Lima Beans

 

Ingredients

Serves 4

16 Jumbo Shrimp – peeled, cleaned and deveined

2 T extra virgin olive oil

2 garlic cloves, sliced

2 Plum tomatoes, chopped

4 skewers

 

Lima Beans

1 lb Jumbo Lima Beans

2 T extra virgin olive oil

4 carrots, diced

1 sweet onion, diced

4 celery stalks, diced

1 garlic clove, sliced

1 cup dry white wine

4 plum tomatoes, chopped

Oregano

Parlsey

 

Directions

  1. Day before preparation – soak lima beans in water over night. Peel, clean and devein shrimp and place four shrimp on each skewer and refrigerate until ready to use (optional). You can also clean the shrimp the day of.
  2. In a large pan, heat olive oil, and garlic. Add carrots, celery, onion, salt, pepper and sauté together for 8-10 minutes. Until cooked through.
  3. Add white wine, fresh tomatoes, dash of oregano and chopped parsley. Continue to sauté for another 3-5 minutes.
  4. Take skewers out of the refrigerator, and drizzle with olive oil, and salt and pepper both sides. 
  5. In a large skillet heat olive oil and sauté skewers in pan for 2 min (or until color is pink) and then turn over. Add slices from 1 garlic clove and fresh tomatoes. Cook for an additional 2 minutes or until cooked.
  6. Place lima beans in the center of the dish, and place shrimp skewer on top. Drizzle olive oil over and serve!

 

Roasted Red Beet Salad, herb crusted goat cheese, string beans

 

 

Ingredients

Serves 4

2 large beets, scrubbed and trimmed

1 lb string beans, ends trimmed

½ cup toasted walnuts

2 T scallions, sliced

2 T Extra virgin olive oil

salt and pepper to taste

 

Herb Crusted Goat Cheese

2 T thyme leaves, chopped

2 T rosemary leaves, chopped

2 T Parmesan Cheese

 

Directions

For the roasted beets: Preheat over to 425 degree F. Wrap each beet in foil and roast them on a baking sheet until tender, about 45 minutes to 1 hour. Once tender, cool the beets in their foil packet for a few minutes, and then take off the skin. The beets need to still be a little warm to be able to remove the skins easily. Thinly slice the beets.

 

For the string beans: Blanch string beans in a large stock pot of well salted boiling water until bright green in color and tender crisp, about 2 minutes. Drain and immediately place in an ice bath. Heat a large pan with olive, garlic and shallots. Add the green beans and continue to sauté for 3-5 minutes.

 

For the Herb Crusted Goat Cheese: Mix all herbs together in a medium bowl. Roll a log of goat cheese to cover the length of the log. Cut log to desired size segments and lay on a baking trey, sprinkle with parmesan cheese and put in broiler on high heat to create a golden parmesan crust on goat cheese segment.

 

Place beet slices in the middle of the dish, then string beans on top and top with herb crusted goat cheese. Drizzle with a lemon vinaigrette and toasted walnuts. Serve warm and enjoy!

 

 

Grilled Angus Sirloin Steak, Barolo Reduction Sauce, Roasted Potatoes

 

 

Ingredients

Serves 4

4 – (10 oz) Top Sirloin Steaks

2 LB red potatoes, cut into quarters

1 teaspoon finely chopped rosemary

Extra virgin olive oil

Salt & pepper to taste

 

Barolo Reduction Sauce

1 bottle Barolo

½ cup shallots

1 T olive oil

Thyme sprig

Salt & pepper to taste

 

For the Steak: Season both sides with extra virgin olive oil, salt and pepper until evenly coasted. Place steaks on the grill and cook for 8-15 minutes depending upon thickness and desired doneness.

 

For the Potatoes: Preheat oven to 450 degrees F. Place potatoes in a large roasting pan and toss with oil, salt, pepper, and rosemary until evenly coated. Spread out potatoes in a single layer. Bake in preheated oven for 20 – 25 minutes, stirring occasionally.

For the Barolo Reduction Sauce: Heat the oil in a saucepan. Add the shallots and thyme and sauté until over high heat for 5-7 minutes, continuously stirring. Add the wine and reduce for 20 – 25 minutes, until consistency thickens. Strain the sauce and drizzle over the steak.

Serve the steak with the Barolo reduction drizzled on top and the potatoes on the side.

 

 

 

The Dirty Little Secret Of The Drug Industry

by Gerri Willis

It’s the dirty little secret of the drug industry: That expiration date on your prescription or over the counter medications may be virtually meaningless.

An expiration date is required by the Federal Government and some states but drug experts say there is very little science to prove that these drugs are dangerous or even less effective if used beyond their expiration date. In fact, most drugs aren’t even tested for shelf life. One of the rare studies conducted found that 88 percent of drugs tested could be used past the expiration date for a period of 66 months or five and a half years! Some drugs can last even longer. According to the FDA, users of Amoxicillin, Ciprofloxacin, Diphenhydramine, and Morphine Sulfate injection can extend the life of their drugs anywhere from one year to 15 years.

The one exception experts told us about was Tetracycline. According to Lisa Gill of Consumer Reports, the antibiotic can become toxic if used after its expiration date. But even Gill says that for virtually every other drug it’s okay to keep them past their expiration date by as much as a year.

To extend the life of your drug, move it out of the medicine cabinet where humidity can hurt effectiveness. If you’re still nervous, stick to sell by dates on drugs you must absolutely have, like an Epi-pen, or heart medications and keep the Aspirin on the shelf longer than the label advises.

The Whopper Takes On Canada

by Gerri Willis

Burger King’s acquisition of Canadian coffee and donut chain, Tim Horton’s, has drawn criticism from many corners including our friends to the north, who are concerned that the classic chain will get an apple pie makeover, but the most succinct critique I heard today came from a Burger King customer on the streets of New York who had just finished lunch. “It’s the American Whopper,” she said.

Not anymore. BK says the deal is virtually complete with only Canadian regulators needed to sign on. Analysts and pundits continue to describe the acquisition as fueled by a desire to lower costs, especially tax costs. Corporate tax rates in the US are 35 percent versus 15 for Canada.  Yet Burger King CEO Daniel Schwartz told reporters today in a conference call that lower taxes weren’t the “driver for the deal” and described the rate differential as not meaningful.

Instead, the company says it needs a strategy to more effectively compete in the fast food niche of the restaurant business which is sorely lacking respect from millennials, who prefer fast casual restaurant chains like Chipotle. No doubt BK needs to fix its image and improve its offerings but the tax backlash the company is receiving isn’t helping it burnish its appeal. Usually milquetoast senators are telling reporters that they are boycotting the burger chain.

Adding to the revelations, the White House’s poster boy for tax fairness, Warren Buffett, who famously proclaimed he has been under taxed for years, is financing the $10 billion Burger King deal and stands to make a tidy profit. As my mom said, things are getting curiouser and curiouser.

Here’s what I think: If tax policies don’t change, BK is the beginning of the wave of U.S. companies which will move offshore to become more competitive. And yet, the administration is adamant in refusing to even consider a more competitive rate for corporate profits. In fact, the Treasury department is engaging in backdoor efforts to stop these moves offshore. And, that will be a waste of time because the more that companies believe regulators are closing the door to these so-called inversion deals, the more likely they are to pursue them. So, in effect, the White House’s policy may speed the result they are hoping to prevent.  Hey, White House, if even your tax fairness guru isn’t with you, it might be time to change sides.

Recipes to Switch Up Your Grilling Routine

Recipes to switch up your grilling routine this summer with Chalk Point Kitchen Executive Chef Joe Isidori

 

 

Spicy Tuna Sashimi Burger

 

5oz Yellowfin Tuna loin

2T spicy mayo

½ avocado, sliced lengthwise

2.5oz package radish sprouts

4 rings pickled red onions

Togarashi to taste

Salt and pepper to taste

1 Martin's potato roll

Extra virgin olive oil

 

For Spicy mayo

 

1T Sriracha

1c Japanese mayo

 

Mix together in a small bowl.

 

For pickled red onions

 

1 red onion, sliced into rings

1.5c water

.5c cider vinegar

1pc clove

1pc star anise

¼ stick cinnamon

 

Bring water and vinegar to a boil. Place onions and dry spices into a mason jar. Pour heated vinegar solution over the onions and dry spices. Steep 45min then cool. Best if used the next day.

 

For Tuna

 

Season tuna loin with salt, pepper and togarashi. Apply olive oil on both sides and place on heated grill.

Grill both sides for approximately 2.5 minutes. Remove and rest. Slice tuna against the grain into thin strips.

 

For assembly

 

Lightly toast Martin's potato roll. Arrange sliced tuna on the roll. Apply spicy mayonnaise and top with pickled red onion, sliced avocado and radish sprouts. Enjoy!

 

 

 

Heirloom Tomato Salad

 

1lg Heirloom tomato, cut into large 1.5” pieces

¼c zinfandel vinegar

¼ extra virgin olive oil

4lg basil leaves, torn

Salt and pepper to taste

Buttermilk dressing

 

For Buttermilk dressing

 

1c Japanese mayonnaise

½c buttermilk

¼c sour cream

1 t garlic powder

1 t onion powder

1 t dijon

½c dill chopped finely

1T apple cider vinegar

1T lemon zest

Salt and pepper to taste

 

Combine all ingredients in a medium size bowl.

 

For assembly

 

Apply a small pool of buttermilk dressing on a plate. Dress cut heirloom tomatoes with vinegar, extra virgin olive oil, salt and pepper in a large bowl. With a slotted spoon, place marinated tomatoes on the dressing. Garnish with torn basil.

 

 

Grilled Zucchini

 

1lg zucchini, sliced lengthwise into just under ½ inch strips

½c garlic aioli

1 sprig picked parsley

¼c chopped katamala olives

1 t ground coriander

Extra virgin olive oil

Sea salt and pepper to taste

 

For garlic aioli

 

6 cloves of garlic

1c Japanese mayonnaise

 

Roast garlic at 400F for 45 minutes or until meltingly soft. In a blender, place roasted garlic and mayonnaise and blend until combined.

 

For Zucchini

 

Season zucchini with sea salt, pepper and coriander. Place on heated grill and cook on one side rotating to form two hash marks. Approximately 3 minutes.

 

For assembly

 

Place grilled zucchini on a plate in a single layer spread out. Spoon garlic aioli on top. Sprinkle chopped olives. Garnish with picked parsley.

 

 

 

Shrimp Salad

 

3 Mexican Gulf white shrimp (U12), poached and chopped

½c lemon aioli

1 t chopped tarragon

15pc capers

1 t ground coriander

Extra virgin olive oil

Salt and pepper

1 pint court bouillon

 

For Lemon aioli

 

½c Japanese mayonnaise

1 t lemon zest

1 t lemon segments

 

Zest one lemon. Then trim zested lemon. Remove segments with a knife and remove seeds. In a blender put mayonnaise, zest, segments and blend till combined.

 

For Shrimp and Court Bouillon

 

1 ½c water

½c white wine

1 lemon juiced

1 onion, chopped

½ celery, chopped

1 garlic clove

1 t black peppercorns

1 sprig of thyme

1 bay leaf

 

Combine all ingredients in a pot and bring to a boil. Drop to a simmer and add shrimp. Poach for about 5 minutes until just cooked. Remove and shock in an ice bath until cool. Peel and chop.

 

Assembly

 

In a large bowl, mix shrimp, lemon aioli, tarragon and capers. Season with salt, pepper and coriander. Spoon onto a plate and enjoy with your favorite chips.   

 

 

 

Strawberries and Cream

 

1 pint fresh strawberries, husked and quartered

2 leaves basil, torn

½c confectioner's sugar

1c heavy cream

1 vanilla bean, split in two

 

For strawberries

 

Macerate strawberries with ¼c confectioner's sugar and half vanilla bean scrapped. Let sit for 30 minutes.

 

For whipped cream

 

Combine cream, ¼c confectioner's sugar and remaining half of vanilla bean scrapped. Whip until soft to medium peaks.

 

For assembly

 

Spoon macerated strawberries in a small serving bowl. Top with whipped cream. Garnish with basil.

 

 

 

 

 

 

 

 

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