AJ's California Mortgage Blog

Does The US Market Have a Strong Economic Future?

2008-10-02T14:31:05Z

The US Market:

The U.S. financial crisis has shaken investor confidence in our. economy, and for good reason. After nearly a decade of excessive borrowing and lax financial regulation, the economy is in a painful credit crisis resulting in Bank failures, home foreclosures, credit card delinquencies. The credit crisis has brought the U.S. economy to a virtual standstill.

There is a growing sense of despair about America's economic future. The near-term health of the U.S. economy seems to be tied to the government's bailout package. Americans are concerned about the nation's long-term health.

But let's reassess the prospects of the U.S. economy. Factors that made the U.S. a strong economic force in the past are still strong and are part of what will bring the U.S. out of this mess. The following list will help show why I think we will have a strong and promising economic future.

The U.S. has the Largest and Most Productive Economy in the World: The U.S. accounts for 25% of global gross domestic product (GDP) and produces more output in a year (around $14 trillion) than the next four largest economies (Japan, China, Germany and the United Kingdom) combined.

The U.S. is the World's Leading Manufacture of Goods: The U.S. is ranked number one in output. America's share of global manufacturing output was 20.5% in 2006 (the latest year of available data).

The U.S. is the Largest Exporter of Goods and Services in the World: The U.S. is a significant exporter of both goods and services. When combined, America emerges as the world's top exporter with combined exports totaling $1.6 trillion in 2007, or 9.4% of total global trade.

The U.S. Remains the World's Top Destination for Foreign Direct investments: The U.S. remains the most attractive market in the world for foreign investors. FDI inflows to the U.S. totaled $1.3 trillion between 2000 and 2007.

America is the Home to the World's Top Global Brands: More than half (52%) of the world's top 100 brands were American in 2008.

The U.S. Remains the World's Technology Leader: The U.S. remains the most innovative economy in the world. That continues to attract the best and brightest from around the world to live and work here. America is the largest market in the world for information technology spending on hardware, software and services.

The U.S. has the Most Top-Ranked Universities in the World: The best universities in the world are in the U.S. Nearly 40% of the universities in the QS World Rankings' top 100 universities are found in the U.S.

The U.S. Dollar is Still the World's Top Reserve Currency: The U.S. dollar remains the reserve currency of choice for many nations.

The U.S. Still has the Number 1 Military: Military might is still critical, especially in a world where geo-strategic-economic flashpoints continue to simmer. U.S. military expenditures have increased sharply during the past few years due to the Iraq and Afghanistan conflict.

The U.S. Ranks Number One in Global Competitiveness: Based on the latest competitiveness survey from the World Economic Forum, the U.S. ranks as the world's most competitive economy.

What does this mean for us Americans?

The U.S. right now does not have a perfect economy with our credit market in turmoil. America's crumbling physical infrastructure, unwieldy healthcare system and debtor nation status require immediate attention. Still, the U.S. remains the most competitive economy in the world. The economical building blocks still remain quite strong. As the Credit Market heals, so will the Real Estate market, the job market, manufacturing and hopefully we will be back in a strong economic market in the near future.

Alan 'AJ' Nisen
Mortgage Loan Officer
Lafayette Chamber of Commerce Board Member
Orinda Chamber of Commerce Board Member
Alamo Chamber of Commerce VP
AJ's Email
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Alisa Corstorphine Named Alamo Citizen of the Year

2008-10-01T15:05:43Z

Congratulations to our very own Alisa Corstorphine of Alamo Today and Lafayette Today!

Alisa was named "Alamo Citizen of the Year" at Alamo Rotary's annual Music and Wine Festival. Nominations are solicited from the community at large. A Blue Ribbon Committee including past recipients of the honor chooses the recipient. Alisa was also announced as the First Annual Alamo Women's Club Woman of the Year.

Aisa has been a pillar in our community. I personally want to thank Alisa for all the support for the Alamo Chamber of Commerce (formerly AMPA).

Acalanes Union High School District Ranks as the Highest Performing California High School District

2008-10-01T14:39:27Z

The Acalanes Union High School District spands 4 cities, Lafayette, Moraga, Orinda (aka Lamorinda) and Walnut Creek. But What a School District!!!

Acalanes Union High School District continues to rank as the highest performing California high school district based on the 2008 Academic Performance Index (API) released by the California Department of Education. As a result of ongoing academic efforts focused on student achievement throughout their schools,the district posted an API of 886, a 4 point increase from 2007.

Superintendent Jim Negri states "Since our strategic plan is based on continuous improvement, I am thrilled that the district API increased for the fourth consecutive year. While the API is an important number and will receive a great deal of media play, I am most pleased by continuous improvement, which our students have demonstrated."

Acalanes Union High School District

Acalanes High School 1212 Pleasant Hill Road Lafayette, CA 94549 925.280.3970 www.acalanes.k12.ca.us/ahs	Campolindo High School 300 Moraga Road Moraga, CA 94556 925.280.3950 Website: www.acalanes.k12.ca.us/campolindo
Miramonte High School 750 Moraga Way Orinda, CA 94563 925.280.3930 www.acalanes.k12.ca.us/miramonte	Las Lomas High School 1460 South Main Street Walnut Creek, CA 94596 925.280.3920 www.acalanes.k12.ca.us/laslomas
Del Oro High School 1963 Tice Valley Blvd. Walnut Creek, CA 94595 925.280.3940 www.acalanes.k12.ca.us/deloro	Center for Independent Study 1963 Tice Valley Blvd. Walnut Creek, CA 94595 925.280.3945 www.acalanes.k12.ca.us/cis
Acalanes District Office Educational Services 1212 Pleasant Hill Road Lafayette, CA 94549 925.280.3900 x 6625 www.acalanes.k12.ca.us/curriculum

Las Trampas Celebrates 50 Years.

2008-10-01T10:09:27Z

Las Trampas is dedicated to enhancing the quality of life for people with developmental disabilities.

Las Trampas is a non-profit organization dedicated since 1958 to enhancing the quality of life for people with developmental disabilities. Mrs. Helen Lucas started Las Trampas as a residential school for 30 mentally retarded children in 1938. Illness forced her to retire in 1958. A group of parents and friends of the students bought the school and decided to incorporate as a non-profit. They named their organization after the creek on the property, Las Trampas. There was a need for the services the school offered. In 1965 the Las Trampas organization received a Federal construction grant. Perata & Sylvester A.I.A. Architects of Lafayette, California designed the new buildings. The buildings were completed and occupied in 1968 with 66 residents.

Las Trampas opened its first off-campus group home in 1971. They added a second off-campus group home 1972. This phase began the transition from a dormitory life style for the Las Trampas residents to a more normal, independent living style. In 1990, Las Trampas became a State demonstration project for supported living. The first phase moved 20 clients to supported living apartments in Walnut Creek and Concord. By 1994, the dormitories' doors closed and everyone had moved into the community.

Las Trampas's mission has remained strong to support people with developmental disabilities so they may discover their capabilities and lead fuller lives in their homes, at work, and in the community. Today Las Trampas services include:

Four state-licensed group residential homes in the East Bay;

Supported Living Services for people in homes and apartments;

Independent Living Services for people that need minimal support;

Adult Vocational Program providing supported employment services and skills development;

Adult Development Program, a day program for ambulatory and non-ambulatory consumers that offers small group supported skills educational development in the areas of daily living tasks, communications, social interaction, and employment and

Day Programs offering a variety of activities including; a fitness room, cooking and nutritional classes, two art workshops, computer lab, a sensory room, music/library area and gardening as well as off site community activities.

In honor of their 50th anniversary, Las Trampas has planned a special event on Thursday October 16, 2008 from 11am to 2pm at Las Trampas' campus (3460 Lana Lane, Lafayette). The event is open to the public and features an open house with tours of their campus, client art display, live music and refreshments. Raffle prizes include local favorites; $40 gift card to Chow, dinner for two at El Charro and Celia's with more to come! Special guests include representatives from Senator Barbara Boxer's office, City of Lafayette and Larry Duson, president and Jay Lifson, executive director both of the Lafayette Chamber of Commerce. For more information, please call Bonnie Peacock at (925) 284-1462 ext. 239. They look forward to hearing from you and hope you will join them in celebrating our 50th anniversary.

Put Real Estate in Your IRA or Qualified Plan with a REIT

2008-09-23T14:53:27Z

REITs

The recent volatility of the stock and bond markets has many investors reviewing their investment strategies and asset allocations. One-dimensional portfolios can be seriously damaged by severe market fluctuation. Investors find out the hard way that diversification can help manage risk in an investment portfolio.

Real estate remains an integral part of a diversified portfolio, but many people are unaware that there are multiple ways to invest in real estate. In addition to sole ownership, there are co-owned real estate opportunities which give investors access to institutional-grade properties.

There is another way to put institutional-grade real estate into your portfolio, including IRA or qualified plans: public, non-traded Real Estate Investment Trusts (REITs).

WikiPedia defines a Real Estate Investment Trust or REIT as a tax designation for a corporation investing in real estate that reduces or eliminates corporate income taxes. In return, REITs are required to distribute 90% of their income, which may be taxable in the hands of the investors. The REIT structure was designed to provide a similar structure for investment in real estate as mutual funds provide for investment in stocks.

This type of REIT is appropriate for investors who:

Have a long-term hold approach - these REITs are not publicly traded, and not subject to "emotional" market fluctuations.

Seek current income - direct investments can offer scheduled cash flow.

Want partial tax deferral of their income - investors enjoy depreciation from underlying assets.

Seek diversification and reduction of volatility - REITs can offer diversification by property type, geographic location, and/or industry focus.

I personally do not market or sell REITs. But I can highly recommend Jeff Graumlich as a valuable resource to help you explore your real estate investment options. You may reach Jeff at:

Jeff Graumlich, Real Estate Investment Consultant
INVERNESS Real Estate Investments
1850 Mt. Diablo Blvd., 5th Floor
Walnut Creek, CA 94596
(925) 457-9002 Cell
(800) 675-2424 Main

You can find AJ Nisen on Active Rain at Contra Costa California Mortgages. Call AJ to talk about your Mortgage, Mortgage Rates, Free Credit Report or visit AJ's website to use his mortgage calculator.

The City of Lafayette California is Going Green

2008-09-03T14:36:36Z

When the City of Lafayette California says Green, they are not talking about your lawn! Nor are they talking about St. Patty's Day! When the City of Lafayette Says Green, the City is talking about their efforts to become a more sustainable community...

The City of Lafayetteefforts to become a more sustainable community has made an impact on many residents. In turn, many residents now try to seek out the most green businesses and services. This phenomenon has put more pressure on Lafayette businesses to become Green!

Why Become Green?

Cost savings .

Build customer loyalty. Consumers are becoming increasingly environmentally conscious and are impressed by businesses with a green conscience .

Preserve the environment by reducing Lafayette businesses' environmental impact

What The City of Lafayette Has Already Done to Become Green

The City of Lafayette, working with The Lafayette Chamber of Commerce to become Green has:

Started the Lafayette Chamber of Commerce Green Committee to help local businesses save money by adopting green practices and be recognize within the community for their efforts.

Lafayette recently joined a national effort to become a Cool City. To become a Cool City, the City of Lafayette must calculate the town's carbon footprint, or the annual tons of carbon dioxide emitted, and then work to reduce emissions. .

Is working with Sustainable Lafayette, a network of residents and organizations that learn from each other through an active website about what solutions work best for making our homes, businesses, and community more sustainable. The Sustainable Lafayette network has monthly get-together with their "Green Drinks" events throughout the Lamorinda area.

The City of Lafayette has started a Lafayette Green Awards program that recognizes outstanding efforts by businesses and residents that contributed to a more sustainable community.

What Lafayette Businesses Can Do Now to Start Becoming Green

If you are a Lafayette business interested in adopting green practices, you can start by calling Jay Lifson jay@lafayettechamber.org at the Lafayette Chamber of Commerce. Green businesses will receive promotion and recognition as special members of our community. And by all means, consider joining the Lafayette Chamber of Commerce Green Committee.

As you consider becoming a green business in Lafayette, here are 15 Ways to Green your Business (from the Sustainable Lafayette Network)

Use compact fluorescent light bulbs
Turn off lights when not in use
Install reduced flow taps and high-efficiency toilets
Print double-sided
Reduce bag waste by asking customers if they need a bag before assuming they do
Turn computers and other appliances off when not in use
Reduce packaging to ship or offer your products in
Have employees use their own mugs to avoid throwing away disposable coffee cups
Make the effort to remove your business from unwanted catalogs and mailings
Encourage employees to walk, bike, take public transportation, or car-pool to work
Purchase only Energy-Star compliant equipment
Purchase office/printing paper with at least 30% recycled content
Buy local-especially if your business sells food
Use green, non-toxic cleaning supplies
Make sure you are properly recycling

Now that California's 2008 Summer Housing Market is Ending

2008-09-01T21:06:01Z

My Thoughts on the Direction of California's Housing Market

Well the Olympics are over, the kids are back in school, the Yankees are out of the pennant race, the lending markets are barely functioning, and mortgage lenders are still failing. Oh bye the way, the Commerce Department has determined a recession will begin by Christmas.

This summer, the Feds were obsessed with minimizing inflationary fears as the cost of a barrel of oil soared, damping the economy as the Cost of Goods increased. Maybe the government should get serious about Energy. If we had spent a $1 Trillion to support development of alternative and renewable energy industries versus trying in insure cheap oil in the Middle East, maybe our long range energy out look as well as our economy would have a bright future by now.

Housing prices nationwide continued to move lower this summer in most markets as sellers gradually came (or were forced) to accept lower price levels. Buyers were reaping the benefit of today's housing market. Transaction activity which was still slow over the summer months seems to be increasing as more buyers entered the market. Hopefully the housing market activity will rise to "normal" again soon. Price levels may fall another 3% to 10% in many markets before entering a stabilizing phase for several years. This phase historically has lead to a new "up" cycle.

Real Estate seems to follows a predictable 20-year pattern, 10 up years followed by 3 down years and then 7 flat years (adjusted for inflation, i.e. 3%-4% annual gains), and then the cycle repeats. The next 6-12 months will likely represent the end of the 3 down years, and then we will be in store for 5-7 flat years or the beginning of the real estate's stabilizing phase.

This is actually good news. The American dream is to own a home, not lose a home. As prices stabilize, sellers and buyers will have more security knowing the value of the commodity they are selling or buying. No matter what is happening in the market, rates, housing values, etc, people always need to move for one reason or another. As we enter a stabilizing phase, there will be less inhibition to sell a home because you know its value and will not over-estimate its value (at least not too much) or buying a home because you know it will not lose value.

So, as we end the summer of 2008, as the economy heads for a possible recession, we hope the housing market has or may be turning the corner.

Orinda California Neighborhoods: What Neighborhood Do You Want to Live In?

2008-08-12T01:19:39Z

Orinda Neighborhoods:

Orinda is a small upscale community. The community has almost perfect weather due to its micro-climate. The micro-climate is defined by a set hills that protects Orinda from the encroachment of ocean fog, but on the other hand, allows the fog to influence Orinda's temperature 10 degrees lower than the hot valley during the hot summer months.

Why is Orinda so desirable?

Is it the Culture?
The Perfect Climate all year around?
The Highly Rated School Systems where over 95% of the Graduates go to college?
The Uniqueness of Orinda's urban setting?
The ease of access to all of the San Francisco Bay Area's Activities?

No matter why Orinda is so desirable, you should check out all the neighborhoods before you purchase a home, your new home in Orinda California.

Northern Orinda:

Orinda Downs / Sundown Terrace / Orinda View are sought after neighborhoods for affluent buyers looking for high-end luxury homes in the Orinda hills. Sundown Terrace has slightly newer luxury homes. All areas are convenient to the Bay Area Rapid Transit (BART) system and the Freeway.

Sleepy Hollow is an older area but a highly desirable area in Orinda. . Sleepy Hollow has a history of having the best weather in Orinda. The micro-climate is such that the fog often by-passes this area in Orinda. For buyers with young children, this area includes Sleepy Hollow Elementary School. For those who like golf and tennis, The Orinda Country Club is just minutes away.

Claremont / El Toyonal is an older area with small homes that were originally San Franciscan's vacation homes. The Claremont Area is closer to the valley while the El Toyonal goes up into the hills and borders Tilden Park. The Wagner Ranch Elementary School is located on the old Wagner Ranch site.

Central Orinda

Orinda Country Club Area is another highly sought after neighborhood which surrounds the Orinda Country Club. The exclusive Orinda Country Club has an challenging Golf Course for the golfer. Lake Cascade (reservoir) next to the Orinda Country Club is a pretty setting that adds beauty to the area. Many homes have been here since the 1920's and 30's. One of the oldest homes is the deLavega estate, a historical landmark, which was built in 1888 by Miguel and Marie LeBreton deLaveaga. Most homes have been remodeled.

Orindawoods is a plan development of attached town homes and detached single-family homes which appeals to the busy executive. Orindawoods has an association that runs a community center and a swim and tennis complex. Homes in this development are close to BART and the freeway with access to all of the Bay Area's activities.

East Orinda

Charles Hill/St. Stephens Area borders up to Lafayette. This area has easy access to both Lafayette and Orinda, and to both the freeway and BART.

Tahos: This area is high in the Eastern Orinda Hills, dotted with many contemporary homes with some traditional and Spanish style homes mixed in.

West Orinda

Wilder: Wilder is located west of downtown Orinda off the Gateway Blvd exit on Highway 24. The Wilder homes between $2,500,000 and $4,000,000 are currently being built. Wilder will be "the" affluent neighborhood, the essence of Luxury in Orinda. Wilder will feature 245 homesites, an extensive network of trails and pathways, a private neighborhood swim and recreation center, five community playfields and over 1,300 acres of dedicated open space connecting to the East Bay Regional Park District.

South Orinda

Glorietta area is a very popular neighborhood, close to both Orinda and Lafayette, the freeway and BART. The Glorietta Elementary School is a draw for parents with young children.

Ivy Drive Area is at the south end of Orinda. Ivy Drive is another desirable neighborhood because it is relativiely flat area and its proximity to both the Orinda Intermediate School and Miramonte High School.

Del Rey Area is at the south end of Orinda next to the Ivy Drive Area. The Del Rey area is relativiely flat with predominately ranch style homes. In the Middle of the Del Rey Area is the Del Rey Elementary School. And above the Del Rey Elementary school is the historic house that Joaquin Moraga built in 1841.

You can find AJ Nisen on Active Rain at Contra Costa California Mortgages. Call AJ to talk about your Mortgage, Mortgage Rates, Free Credit Report or visit AJ's website to use his mortgage calculator.

Alan 'AJ' Nisen
Mortgage Loan Officer
Board Member on the Orinda Chamber of Commerce
AJ's Email
AJ's Mortgage Website
AJ's ActiveRain Blog

Maximizing Wealth by Minimizing Mortgage Debt?

2008-08-11T15:08:13Z

Is the best way to build home equity and wealth by quickly paying down and eventually paying off the mortgage? Is that a wise investment strategy to be in? The answer is it depends on:

How you calculate the return on investments;
Generational and cultural differences.

Up to the sub-prime crash starting in 2006, Americans were caught up in a frenzy to build wealth through appreciation: as the value of their home increased through appreciation (increased wealth), the percentage of debt decrease with respect to their total asset portfolio.

Today, property values are depreciating. Paying off mortgage debt can still be achieved long term by high networth individuals and even for some who are struggling to pay their mortgages. Paying off mortgage debt can be achieved in several ways including:

Making one extra mortgage payment each year;
Putting spare amounts of cash toward the principal;
Using a sudden windfall, such as a tax refund, to pay off some of the debt.
Transferring wealth from one investment to pay off mortgage debt.

Some home owners / affluent investors, typically older, strive to be mortgage-free by the time they retire. The 2006 U.S. Census Bureau figures reports that slightly less than one-third of homeowners have no mortgage. A University of Michigan health and retirement study showed the level of mortgage debt among retirees is, on average, only about 11 percent of their home values. This might be attributed to the older generation having lived through some major economic hardship and/or cultural mind-set during their asset growth years to minimize debt.

On the other end of this debate is why pay off a mortgage when there are more profitable investments elsewhere. Depending on how you crunch the numbers, this group, typically younger and influenced by the housing boom, see little downside to carrying a mortgage. They see several advantages in carrying a mortgage include:

Tax write-off benefit on mortgage Interest (up to $1,000,000 on 1st mortgages and another $100,000 on a Home Equity Line of Credit (HELOC) on primary and second homes.
Tax write-off on property taxes on primary and second homes.
Tapping equity for improvements on their home to add value, or for other higher return investments.

The tax advantage is their main argument in maintaining a higher mortgage amount and using their equity in alternative higher return investments. But, the mortgage interest component over time slowly decreases. There comes a point at which the tax advantage disappears unless they refinance (at a cost) or the tax law that allows the deduction changes. On the other hand, has this group invested wisely, managed their "cash" assets in other higher interest investments? Or have they borrowed for "toys" they could not otherwise afford? If managed well, there is the possibility of having greater net wealth at retirement.

You can find AJ Nisen on Active Rain at Contra Costa California Mortgages. Call AJ to talk about your Mortgage, Mortgage Rates, Free Credit Report or visit AJ's website to use his mortgage calculator.

Alan 'AJ' Nisen
Mortgage Loan Officer
AJ's Email
AJ's Mortgage Website
AJ's ActiveRain Blog

Lafayette California Neighborhoods: What Neighborhood Do You Want to Live In?

2008-08-10T01:45:20Z

Lafayette is a small upscale community. Even today, starter homes go for $800,000 or more. There are many executives who when relocated to the Bay Area were very surprised at what they could afford to purchase in Lafayette California when compared to where they came from.

Why is Lafayette so desirable?

Is it the Culture?

The Perfect Climate all year around?

The Highly Rated School Systems where over 95% of the Graduates go to college?

The Uniqueness of Lafayette's urban setting?

The ease of access to all of the San Francisco Bay Area's Activities?

No matter why Lafayette is so desireable, you should check out all the neighborhoods before you purchase a home, your new home in Lafayette California.

Lafayette California Neighborhoods.

Burton Valley is one of Lafayette's sought after areas to live. Many of the homes are Marchant homes built in the 50's and 60's. The Burton Valley Elementary School is located in the middle of Burton Valley. Nearby you'll find the Rancho Colorados Swim and Tennis club, the Lafayette Community center and the Lafayette/Moraga Trail.

Happy Valley & Upper Happy Valley area is one of the most prestigious neighborhoods in Lafayette. Happy Valley and Upper Happy Valley are saturated with luxury homes. The area is beautify, relatively flat with abundance of old oak trees. Happy Valley Elementary School and The Bentley School (private) are is located in this area.

Tiffany Hills, Via Roble, etc., Quail Ridge area is located next to Happy Valley area. These are hilly locations with views of Lafayette and Mt. Diablo.

Downtown: From the West side of Moraga road: Boyer Circle, Oak, Dewing, Brook, etc. and the East side of Moraga road: 1^st street, 2^nd street, etc., Moraga Ave. and Moraga Blvd. Homes in this area are close enough to downtown Lafayette, thus ideal for commuters and people who like to walk to town. Lafayette Elementary School and Stanley Intermediate School are located in this area.

Springhill, Quandt,Woodborough Area are desirable area close to Springhill Elementary and Acalanes High School. Close by is the highly ranked Springbrook Pool Association. These neighborhoods are minutes from the freeway and the Lafayette Bay Area Rapit Transit (BART) station.

Reliez Valley has a rural country feeling. The rolling hills that line Reliez Valley are abundant with trees with luxury homes hiddent into the landscape. Most homes are located on cul-de-sacs off of Reliez Valley. One sought after location in this area is the Silver Dell Subdivision filled with luxury homes. Another sought after area is Baywood, another upper-end gated community filled with luxury homes. The Baywood community is backs up to the Briones Regional Park with miles of walking trails.

Silverwood Area, located in the western area near Orinda is hilly location with many oaks. The area is considered a great Lafayette address, close to the freeway and BART.

You can find AJ Nisen on Active Rain at Contra Costa California Mortgages. Call AJ to talk about your Mortgage, Mortgage Rates, Free Credit Report or visit AJ's website to use his mortgage calculator.

Alan 'AJ' Nisen
Mortgage Loan Officer
Board Member on the Lafayette Chamber of Commerce
AJ's Email
AJ's Mortgage Website
AJ's ActiveRain Blog

A Snippet of Orinda California's History Chapter 1.

2008-08-08T01:27:44Z

Orinda California

Orinda California is an upscale family-oriented community located 30 minutes from Downtown San Francisco and right next to Lafayette. Orinda is in the middle of soft rolling, tree-studded hills; a sharp contrast to most urban communities. Orinda's natural beauty, history, excellent schools, culture and proximity to all of the San Francisco Bay Area make it a much desired area to raise a family.

Today, many of Orinda's founding family names are still familiar to the community: Glorietta, Casa Vieja, Nelson, Bryant, Miner, Lautewasser, Wagner and deLavega. The growing number of official landmarks shows how Orindians appreciates their community's history.

Orinda's Beginning

Orinda was originally settled by the Saclan Indians, a part of the Bay Miwok Indian tribe, roughly 10,000 years ago. The Saclans settled throughout what is now known as the Diablo Valley including what is now Lafayette and Orinda. The Saclans were a peaceful group who lived off the land.

Life changed for the Saclans Indians with the arrival of the Spanish settlers. The Saclans died from diseases brought by the Spanish and were forced out of the area unless they were willing to be missionized by the Catholic Church.

In 1835, the Mexican Government granted 13,326 acres, known as Rancho Laguna de los Palos Colorados, to Joaquin Moraga and Juan Bernal, Joaquin's cousin. Joaquin Moraga built his home in 1841 on a hill just above the present day Del Rey Elementary School where it still exists. A portion of the Rancho Laguna de los Palos Colorados land grant is now the south part of Orinda. Orinda's northern area lies on part of a 22,000 acre land grant known as Rancho El Sobrante granted to Juan Castro in 1841.

After the Spaniards, the era of great ranchos with their vast herds of cattle, Orinda's legacy was passed on to the American settlers who had traveled west by wagons to California, to Orinda. Orinda became a farming community. Ownership passed through several hands. In 1876, William Walker Cameron and his wife, Alice Marsh (daughter of John Marsh) became the major land owners in northern Orinda. In 1887, Jose and Miguel deLavega of San Francisco bought 1200 acres of north Orinda. A deLavega son, E. L. , subdivided the property and established the town of Orinda in 1920. The deLavega family is credited with much of Orinda's development and character.

There will be more to come.

More information about Orinda and the Orinda Historical Society can be found on the web at http://www.orindahistory.org. Questions about the Orinda Historical Society may be sent to P.O. Box 82, Orinda, CA 94563 , or call 1.925.254.1353

You can find AJ Nisen on Active Rain at Contra Costa California Mortgages. Call AJ to talk about your Mortgage, Mortgage Rates, Free Credit Report or visit AJ's website to use his mortgage calculator.

Alan 'AJ' Nisen
Mortgage Loan Officer
Board Member on the Orinda Chamber of Commerce
AJ's Email
AJ's Mortgage Website
AJ's ActiveRain Blog

High Net Worth Real Estate Individuals: Refinancing Mortgages Held in an LLC

2008-08-06T23:01:51Z

GSEs Fannie Mae and Freddie Mac will not Insure Mortgages that are refinance while being held in a LLC.

Real estate investors often hold investment properties in an LLC for liability protection. Freddie Mac lending policy changes will not insure Mortgages that are refinanced while being held in an LLC at any time in the previous 6 months.

High Net Worth individuals have several options to refinance their mortgages being held in an LLC if using a Freddie Mac or Fannie Mae backed lender.

First, if you are not planning to refinance your property in the next year, you can leave the property where it is. The LLC will continue to give you the benefits you expected when you set it up. Unless you have an ARM that really needs to be refinanced, you can stay with the same mortgage until you sell the property.

Secondly, you can pull the property out of the LLC seven months before you set out to refinance it, and put the property back in after the refinance is complete. Yes, you will have liability exposure during those seven months, so make sure your insurance is paid up and get an umbrella policy.

Thirdly, you can find a lender who is willing to refinance the property inside an LLC and pay the higher interest rate. Or

Fourthly, you can move the property from your LLC to a trust, with the beneficial interest in the trust held by your LLC.

Please note that real property held in trusts do not have "court proven" liability protection in the event of litigation. Also there is a risk of personal liability exposure to the real estate investor with this fourth option.

A Little History of Lafayette California: The Way Side Inn Chapter 4

2008-08-06T16:55:21Z

History of Lafayette California

Lafayette is located in Contra Costa County which is a little northwest of San Francisco. Lafayette is a still a quaint community with that small town feel. Even so, Lafayette has grown into one of the top income per capita towns in the US as reported by CNN (#21).

Lafayette is one of my favorite towns in the whole world. Lafayette seems to attract people who love to volunteer. There are many volunteer organizations in town. One of those volunteer organizations is the Assistance League of Diablo Valley who in 1978 purchased one of Lafayette's existing pieces of history, The Way Side Inn.

Here is a little history about this great community.

Lafayette California's Way Side Inn.

Lafayette California still has several historic buildings from it's beginnings. One of those historic buildings is the Way Side Inn. In an area then called Hotel Corner but now called Plaza Square (Mt Diablo Blvd. and Moraga Road), Edward J. Brady, in 1894, constructed the Way Side Inn, a hotel and tavern. The Way Side Inn was marketed as a "first class" establishment.

At the time the Way Side Inn was built, Mt. Diablo Blvd. was on the stagecoach road between Walnut Creek and Oakland. The Way Side Inn was in a perfect location for travelers and business. It soon became a stopping place for cattlemen driving their livestock to market. Cowboys needed a place to clean off and of course, take advantage of the local tavern before driving their cattle over the Berkeley Oakland hills to market. Teamsters, who hauled redwoods from Canyon to Martinez, also needed a place to stay and refresh themselves.

Around 1910, Thomas Reed purchased the property and named it the Way Side Inn. He turned the property into a rooming house and saloon. But it was rumored that "ladies of the evening" worked upstairs.

Early Lafayette History did have a lot of color to it.

To find more history about Lafayette California, You might like to read:

You can find AJ Nisen on Active Rain at Contra Costa California Mortgages. Call AJ to talk about your Mortgage, Mortgage Rates, Free Credit Report or visit AJ's website to use his mortgage calculator.

Alan 'AJ' Nisen
Mortgage Loan Officer
Board Member on the Lafayette Chamber of Commerce
AJ's Email
AJ's Mortgage Website
AJ's ActiveRain Blog

Stated Income Loans: Are they Endangered or are they Extinct!

2008-08-05T18:31:44Z

Stated Income

As of August, 2008, guidelines for "STATED INCOME" loans chaged. Well, Fannie and Freddie have really pulled out the stoppers now!

As of 08/06/2008, Freddie is not buying any Stated Income (Verified Assets) loans at all.

Fannie is still buying any Stated Income (Verified Assets) loans but very selectively. For example, Fannie is no longer accepting Stated Income (Verified Assets) loans over 75% CLTV or Interest Only loans period.

I guess the "State Income" Loan has become extinct!

The Pony Express Rides Throught Lafayette California: Chapter 3.

2008-08-05T17:54:08Z

History of Lafayette California

Lafayette is one of my favorite towns in the whole world. One of the reasons I like Lafayette is that the community support for the businesses in town like Ed Stokes' Diablo Foods or Jesse Wellen's Lafayette Car Wash. The slogan "Shop Lafayette" is a key part of what makes Lafayette the great community it is.

Here is a little history about this great community.

How The Pony Express Came to Town.

One of the most exciting bits of Western Laure was the Pony Express. The Pony Express route started in St. Joseph, Missouri and travel 1840 miles to Sacramento, California, where the mail was placed on a steamer to San Francisco. The entire trip would take 10 days!

Twice in 1860 and at least 18 times in 1861, the Pony Express missed the boat connection (literally). The mail had to be routed overland from Sacramento to Oakland California. The Pony Express route took the mail through Lafayette California down Mt. Diablo Blvd. The riders would stop at what is now the intersection of Moraga Road and Mt. Diablo Blvd to get a fresh horse. Yes, the mail had to be delivered by the Pony Express, rain or shine and sometimes through Lafayette.

That is how The Pony Express Came to Lafayette California.

To find more history about Lafayette California, You might like to read:

A Little History of Lafayette California Chapter 1.
How Lafayette California Was Named: Chapter 2.

You can find AJ Nisen on Active Rain at Contra Costa California Mortgages. Call AJ to talk about your Mortgage, Mortgage Rates, Free Credit Report or visit AJ's website to use his mortgage calculator.

Alan 'AJ' Nisen
Mortgage Loan Officer
Board Member on the Lafayette Chamber of Commerce
AJ's Email
AJ's Mortgage Website
AJ's ActiveRain Blog

How Lafayette California Was Named: Chapter 2.

2008-08-05T16:26:38Z

History of Lafayette California

Lafayette is one of my favorite towns in the whole world. I really enjoy how the town rallies around local events. Some of Lafayette's annual events are:

A Taste of Lafayette (May 20th 2008)

Lafayette Criterium Bike Race (held July 13th in 2008)

Lafayette Art and Wine (The 3rd Weekend in September). This event draws over 100,000 people.

Lafayette Reservoir Run (The Last Sunday in October)

How Lafayette was Named.

Benjamin Shreve came West to make is fortune with the California Gold Rush. After failing to make his fortune, he decided to settle in Lafayette, California. Benjamin built and ran Lafayette's first school.

In 1857 Benjamin Shreve became Lafayette's postmaster. As postmaster, Benjamin decided the town needed a permanent name. Up to this point, the town had been called Dog Town, Brown's Corner, Brown's Mill, Acalanus, and Centerville. Benjamin wanted the name Centerville, but it was rejected because there was another Centerville in the state. Benjamin's second choice was La Fayette which became the name of this small community. In 1932 the name was changed to today's spelling, "Lafayette".

That is how Lafayette California was Named.

To find more history about Lafayette California, You might like to read:
Lafayette California was Named After General Marquis-de Lafayette
A Little History of Lafayette California Chapter 1.

You can find AJ Nisen on Active Rain at Contra Costa California Mortgages. Call AJ to talk about your Mortgage, Mortgage Rates, Free Credit Report or visit AJ's website to use his mortgage calculator.

Alan 'AJ' Nisen
Mortgage Loan Officer
Board Member on the Lafayette Chamber of Commerce
AJ's Email
AJ's Mortgage Website
AJ's ActiveRain Blog

A Little History of Lafayette California Chapter 1.

2008-08-05T15:35:27Z

History of Lafayette California

Lafayette is one of my favorite towns in the whole world. Maybe that is because I lived in Lafayette half my life. Lafayette is located in Contra Costa County which is a little northwest of San Francisco.

Lafayette is a still a quaint community with that small town feel. Even so, Lafayette has grown into one of the top income per capita towns in the US as reported by CNN (#21).

Lafayette's Beginning

Lafayette was originally settled by the Saclan Indians, a part of the Bay Miwok Indian tribe, roughly 10,000 years ago. The Saclans settled throughout what is now known as the Diablo Valley including Lafayette. The Saclans were a peaceful group who lived off the land.

Life changed with the arrival of the Spanish settlers. The Saclans died from diseases brought by the Spanish and were forced out of the area unless they were willing to be missionized by the Catholic Church. It was reported that in 1797, the Saclans fought a battle with the Spaniards on what was later to become Lafayette.

After the Spaniards, American settlers started to travel west by wagons to Oregon and California. Elam Brown, one of the first settlers in Contra Costa County, led a fourteen family wagon train through the Donner Pass in 1847 just days before the ill-fated Donner party.

Soon after Elam Brown arrived, Brown bought a 3,329 acre Mexican land grant called Rancho Acalanus, which is now almost all of present day Lafayette. Elam built the first of his three homes in February of 1848 in the Lafayette's Happy Valley area, making this the start of what was to become the first community in central Contra Costa County.

Elam Brown sold parts of his property to other farmers who were in his wagon train. Elam and his neighbors farmed the area, mainly growing grain. To mill their grain, Elam and others had to take a 7-10 day journey to San Jose California where the closest grist mill was located. This was too long of a journey for Elam and his neighbors. So Elam built his own horse-drawn grist mill (a mill which turns grain into flour). Latter, Elam built a steam powered mill on Lafayette Creek which would be near First Street in present day Lafayette.

Once that mill was built, Lafayette's commercial center began to grow. The first businesses were a blacksmith's shop, a bar, a general store and rooming houses. In relation to the present day, these businesses were located at the intersection of Mt. Diablo Blvd. and Moraga Road.

There will be more to come.

More information about Lafayette and the Lafayette Historical Society can be found on the web at www.LafayetteHistory.org. You can order a copy of the book there as well. Questions about the organization may be sent to PO Box 133, Lafayette, CA 94549 or asked via the website. Membership in the organization is $10/year.

You can find AJ Nisen on Active Rain at Contra Costa California Mortgages. Call AJ to talk about your Mortgage, Mortgage Rates, Free Credit Report or visit AJ's website to use his mortgage calculator.

Alan 'AJ' Nisen
Mortgage Loan Officer
Board Member on the Lafayette Chamber of Commerce
AJ's Email
AJ's Mortgage Website
AJ's ActiveRain Blog

Lafayette California's ROCK THE PLAZA Concert Serries, 2008

2008-08-04T15:54:42Z

The 2008 ROCK THE PLAZA Concert Serries, Lafayette, California.

Lafayette has is very own 'Rock the Plaza' series. The Lafayette Chamber of Commerce (of which I am a Board Member) presents a local Rock Band every Friday night during the month of August between 6:00 pm and 8:00 pm. This event happens in Lafayette's(Elam & Margaret Brown) Plaza Park, located at the corner of Mt. Diablo Boulevard and Moraga Road. All shows are Freeeeeeeeeeeee.!

The Red House All-Stars on August 1

The first concert on August 1^st was a great success. The group "The Red House All-Stars" played for an audience of at lease 300 people. Many of the audience brought there own food and drink. But for those in the "KNOW", knew that the Lafayette Rotary (hey that was me at the barbeque) was selling Hamburgers, Hot Dogs, Chicken Sandwiches, Chicken Sausages, Chips and Drinks.

Stagefrite on August 8

Stagefriteplayed to an audience of around 250 Friday. Friday night was one of those Cold summer evenings where the Fog came in with a vengeance. Even so, we had a great turnout. The Kids had a great time running around and dancing to the music. Hey, I even saw a lot of adults dancing out there. If you haven't seen Stagefrite, find out were they are playing and go see them. They were fantastic. And as always, the Lafayette Rotary did a great job of providing "HOT" hot dogs and hamburgers. This week we also had Pizza.

The Ramblers on August 15

The Ramblers played to an audience of 300 enthusiastic fans. We had an exceptional warm evening with just enough wind to keep the fans from getting too hot. The Kids dance to the music and played "Air" guitar. Young and Old found a great way to spend the eveing. And as always, the Lafayette Rotary did a great job of providing "HOT" hot dogs and hamburgers. My suggestion is to come early for the food. The fans do get hungry from all that dancing.

The Spazmatics August 22.

The Spazmatics WOWed our biggest crowd (approximately 450) of the series. They were out in the crowd playing and having a lot of fun. Their band's name says a lot about their paying style. If you did not make it Friday, you really missed an event. This was the last "Rock the Plaza" in the series. The Rotary sold out their Chicken sandwiches, hamburgers and hot dogs. Here are a few pictures from our last event. Hey, I am the the guy in the sunglasses!

I also want to thank our sponsors for the Rock the Plaza Serries. Our sponsors include:

Red House Studios;
Minuteman Press;
Contra Costa Times;
Cedric Cheng Design;
Diablo Valley92.1;
City of Lafayette; and the
Lafayette Chamber of Commerce.

Front-End Ratios, Back-End Ratios, What are They?

2008-08-03T10:40:13Z

Ratios: What are they?

We hear Mortgage loan officers talk about ratios all the time.... Your Front end ratio musts be less than... or your back end ratios must be less than.. Will it mean that you will not qualify? Is it just some mumbo jumbo to impress the uninitiated? Really, what does it all mean?

Front-End Ratio

A Front-end ratio is that portion of an borrower's income that is used to make a mortgage payment. The front-end ratio signifies the payment a borrower can reasonably afford as determined by a lender. This ratio is calculated by aggregating the borrower's monthly housing expenses, divided by his or her monthly gross income, and then expressed the result as a percentage. Monthly housing expenses include the mortgage principal, interest, taxes and insurance payments - collectively known as PITI. Monthly gross income (Salary, Commissions, net earnings, etc. and passive income) is simply annual income divided by 12 (months). Banks use the front-end ratio in conjunction with the back-end ratio to approve mortgages. Front end ratios in recent years have become less important in the qualification process.

Front-End Ration = (Monthly Housing Expense / Gross Monthly Income) x 100

Back-End Ratios, AKA Debt-to-Income Ratios

A Back-end ratio, also known as Debt-to-Income (DTI) ratios, indicate what portion of a person's monthly income goes toward paying debts. A Back-End ratio is calculated by totaling borrower's monthly minimum debt payment, divided by gross monthly income and then expressed as a percentage. Total monthly debt includes such expenses as mortgage payments (Principle, Interest, Taxes, Insurance (PITI)), minimum credit-card payments, child support and other loan payments. This ratio is higher than Front-End ratios because it is calculated using total monthly debt payments. Banks put more emphasis on the Back-End ratio vs. Front-End ratio in the mortgage approval process. Back-End Ratios show a point in time view of a borrower's current financial status. The higher the ratio, the less likely a prospective borrower will be able to pay all their debt on time sometime in the near future (e.g., a higher risk borrower). A borrower can modify their Back-End Ratios by paying off debt, and thus increase the the maximum mortgage the borrower can qualify for. This can be done by using other assets to pay off debt, a gift from family, etc.

Back-End Ratio = (Total Monthly Debt Expense / Gross Monthly Income) x 100