My Monthly Newsletter

Thursday, January 13, 2011 In this issue: Avoid break-ins with these tips Declutter your kitchen Frugal home decor Calculating GDS/TDS ratios Shawn Mooney (403) 945-8769 mortgages@shawnmooney.com Current Rates: Terms The Bank Our Rates 1 Year 3.35% 2.54% 2 Years 3.60% 3.05% 3 Years 4.15% 3.45% 4 Years 4.94% 3.59% 5 Years 5.19% 3.65% 7 Years 6.35% 4.50% 10 Years 6.50% 4.95% VIRM 3.00% 2.20% The prime rate is 3.00% Contact Info: AIRDRIE, Alberta (403) 945-8769 Visit my Website

Avoid break-ins with these tips This article from a Florida TV station's website offers tips to avoid becoming the victim of a burglary - and the tips come right from the mouth of a convicted burglar. Below are a few highlights: Read More Declutter your kitchen The kitchen is one of the highlights of a home - whether you`re buying or selling - unless it`s overrun with household items. If you`ve been thinking of decluttering your kitchen, consider the following tips: Read More Frugal home decor When it comes to home decor everyone appreciates a good bargain - especially around the holidays. Below are a few blogs to help you run your household - and make it look great - at a fraction of the cost. Read More Calculating GDS/TDS ratios To make sure prospective homebuyers aren't over-extending themselves, lenders use two calculations - the Gross Debt Service (GDS) ratio and Total Debt Service (TDS) ratio - to determine how much of a mortgage you can affordably take on. Read More Avoid break-ins with these tips This article from a Florida TV station's website offers tips to avoid becoming the victim of a burglary - and the tips come right from the mouth of a convicted burglar. Below are a few highlights: If you have a burglar alarm in your house, don't post the company's sign on your window. That just tells the burglar what type of alarm they have to dismantle once they get inside. Let it be a surprise. Always lock your doors with a deadbolt (not just the flimsy lock on your doorknob, those are easy to jimmy). In the same sense, if you have a sliding door, make sure you have a bar or block of wood wedged in at the bottom. Lock your car (apparently many people forget this easy piece of theft-proofing, especially when they head to the mall).  If your stuff does get stolen, check online sites like Craigslist. Apparently that's the easiest way for thieves to unload them. Dogs are the best form of burglar alarm and they don't even have to be big. They just have to bark. If possible, take the time to mount your expensive electronic gadgets: like your flat screen TV -to your walls or wall units. Buy mounting clamps and security screws that require a special screwdriver. Most thieves won't take the time to disassemble them..  Back to Top Declutter your kitchen The kitchen is one of the highlights of a home - whether you`re buying or selling - unless it`s overrun with household items. If you`ve been thinking of decluttering your kitchen, consider the following tips: 1. Purge. It`s believed that most of us use 20% of our kitchen gadgets and utensils 80% of the time. If you have a number of items cluttering your countertops and drawers that you haven`t used in a while, consider whether you really need it. 2. Downsize. If you only use your food processor for the occasional dip or blended drink, you may want to consider a more compact option - such as an electronic hand blender or Magic Bullet. 3. Look at your storage options in a new light. If you have a nice set of dishes or cutlery, why not put them on display. This decor blog has quite a few creative ideas. Back to Top Frugal home decor When it comes to home decor everyone appreciates a good bargain - especially around the holidays. Below are a few blogs to help you run your household - and make it look great - at a fraction of the cost. 1. FrugalMom.net/blog In addition to a thrifty 'home decor' section, this blog offers a variety of frugal tips - and DIY ideas - for running a tight budgeted household. It features everything from money-saving grocery shopping tips to affordable DIY Christmas presents. 2. ThriftyDecorChick.blogspot.com This blog is all about sharing affordable home decor ideas. Right now, it's absolutely loaded with holiday DIY projects - complete with photos and easy-to-understand instructions. 3. CentsationalGirl.com Another decor-centric website that seeks to find 'diamond style on a dime'. These DIY projects are so pretty - and cheap! 4. FrugalHomeDesigns.com This blog focuses on how to breathe new life into old and tired household items. Back to Top Calculating GDS/TDS ratios To make sure prospective homebuyers aren't over-extending themselves, lenders use two calculations - the Gross Debt Service (GDS) ratio and Total Debt Service (TDS) ratio - to determine how much of a mortgage you can affordably take on. GDS is the percentage of your gross income that is required to cover housing costs. Typically, lenders won't give you a cent if your GDS is higher than 32%. Included in the GDS is the mortgage payment, property taxes, heating expenses and condo fees. Example: Gross monthly income = $4,500 Monthly mortgage payment = $1,000 Monthly property taxes = $200 Heating expenses = $150 Total monthly household expenses: $1,350 GDS = (Total Monthly Expenses)/(Total Monthly Income)         = $1,350/$4,500         = 0.3 (30%) TDS, or Total Debt Service, represents the percentage of your gross income that is required to cover housing costs and any additional debt. This figure should not be more than 40%. These costs typically include anything that would report to the credit bureau, including credit card balances, lines of credit or car loan payments. Example: Total Household Expenses: $1,350 Minimum Line of Credit Payment: $100 Monthly Car Payment: $300 Total Debt: $1,750 TDS = (Total Debt)/(Gross Monthly Income)        = $1,750/$4,500        = .39 (39%) Back to Top