Tips to Help Your Home Weather the New England Winter

Reverse Mortgages Can Help Seniors Stay at Home
By Kimberley Edgar

Reverse mortgages may help homeowners 62 and older stay in their homes.

  It used to be AAA’s reverse-mortgage professionals saw one in five people they worked with have an existing mortgage to pay off.
  But that has risen to four in five, as increasingly more seniors have to mortgage their properties to make ends meet, said Deb Imondi, Vice President of AAA Southern New England Bank.
  In one instance, a 71-year-old woman juggling the pressures of caring for her ailing husband – who has Alzheimer’s – and physically handicapped daughter – who battles multiple sclerosis – came close to losing her home in a scam, Ms. Imondi said.
  AAA teamed with a prominent Boston law firm working pro bono to help the woman secure a reverse mortgage.
It let her satisfy existing liens, reclaim her house of more than 50 years and have peace of mind – and she had some money left over, Ms. Imondi said.
  While it’s a heroic example of AAA saving the day, it’s one of many where AAA’s reverse mortgages help seniors stay at home.
  Homeowners at least 62 years old are eligible to tap into their equity and take a reverse mortgage. Earlier this year, the loan amount limit rose to $625,500, which translates to potentially more equity available for higher-valued homes.
  Those opting for the Home Equity Conversion Mortgage from the start are ensured they won’t have to make a monthly mortgage payment for as long as at least one of the owners lives on the property. These represent the majority of reverse mortgages in the United States.
  Homeowners must continue to pay taxes and insurance, but it’s more feasible without a monthly mortgage payment.
  “With sufficient equity, existing mortgages can be paid off, relieving a homeowner of their monthly outgo, thus improving their cash flow,” Ms. Imondi said.
AAA’s trusted professionals can help seniors determine what works best for them.
  “Each mortgage is structured to the borrower’s needs; therefore, it is important to speak with an experienced professional who has dealt with issues of estates, trusts, liens and family situations that can impact the transaction,” Ms. Imondi said. “It’s important you know with whom you are dealing and that you bring trusted family or advisers into the discussions.”

10 Planning Tips to Make the Most of Your College Tour
By Shelley Honeycutt

With the right preparation, you can help your teenager find a college that’s a perfect fit.

  Applying to college these days can be stressful and time consuming. Students are faced with stiff competition, action-packed schedules and life-changing decisions. Planning a successful college tour can help your student make better and more informed choices. Making the most of your campus visit can be essential to your student’s long term college success.
Tip #1: Call Ahead
  Contact the Admissions Office of each college to set up your campus tour. Most colleges prefer about two weeks notice. Set up appointments to meet with Admissions, Financial Aid and a professor or adviser in the major you plan to study. Once you finish the guided tour, take your own tour. Plan to make time to walk around campus, eat on campus and see other facilities that were not on the tour.
Tip #2: Think Green
  Narrow the number of colleges on your list by participating in virtual college tours and college fairs before deciding which campuses to spend your time visiting. Most schools offer virtual tours on their Web sites. Consider participating in a virtual college fair such as CollegeWeekLive.com. This is a way to save time and money and reduce your carbon footprint!
Tip #3: Get Directed
  Many campuses are big and sprawling. Don’t waste your time getting lost. If you are renting a car, rent a GPS device with it or print out a TripTik before you leave home. This is a great time saver and could cut down on travel stress for everyone. Additionally, know where to park on campus. Most colleges will have a campus map you can download online.
Tip #4: Check the Calendar
  Look at the college calendar. If you are visiting a college with a big sports team, you may not want to visit during the State Championship. Look at the other events booked for that time. Lectures, political debates and other similar events can cause traffic congestion and make hotel rates climb.
Tip #5: Go Off Campus
  When you choose a college, you are deciding where your child will live for the next four years (or at least nine months out of the year). Take some time to go off campus and explore the community. Use public transportation if this will be the primary mode of getting around. Pick up local newspapers and publications. Visit nearby points of interest. Visit the local walk-in clinic, dentist or other services your student may need during the year.
Tip #6: Fewer Frills
  Consider booking hotels with fewer frills. Since the purpose of your trip is to visit the campus and see the surrounding community, your time in the hotel will be minimal. Look for lower cost hotels with fewer amenities to help minimize costs.
Tip #7: Talk to Students
  Who knows the campus better than the students who live there? You can get candid feedback from students on a variety of topics. Talk with students at the dining hall, the campus bookstore or the student center.
Tip #8: Take Notes
  Taking notes can be a family activity. Everyone can jot down impressions, information or Web sites offered on the tour. With all of the information you take in on one college tour, it is likely you will not remember everything. Take notes during each tour and discuss them during your trip back home.
Tip #9: Take a Break
  Whether you are taking a long road trip or flight, everyone needs a break from the routine. Plan to take a hike or sightsee between colleges A and B. This will allow everyone to get some exercise and add new perspective.
Tip #10: Let a Professional Help
  Planning a college tour can be challenging and time consuming. Consider getting a professional to assist with car rentals, hotel recommendations, plane tickets and estimated travel times between schools.
  College tour planning is now available through AAA. And they have partnered with Best Western to save you even more money. To find out more, visit AAA.com/financialaid.
Shelley Honeycutt is AAA’s Student Lending Manager.

Good Idea to Consider Flood Insurance
By Brandie M. Jefferson

Flood damage is not covered in homeowners insurance.

  Sure, you had some water in your basement this summer, but there were record amounts of rainfall throughout New England. Does a little rainwater mean your house is at risk for a flood?
  Maybe. Maybe not.
  But, especially since flood damage is not included in homeowners insurance, it’s always a good idea to find out.
  “Even if you don’t think you’re at risk, take a look,” said Frank Doyle, Senior Vice President of AAA Insurance Agency.
  Last year, you may not have been required to buy flood insurance. But if you plan on moving, or even refinancing, it’s an especially good idea for you to check again.
  The federal government is reclassifying flood zones in cities and towns across the country, and New England is no exception.
  An insurance agent can determine whether your classification has changed, Mr. Doyle said. That goes not only for homeowners, but for renters, too.
  Who should get insurance? “Look at the exposure and consider the costs and benefits,” Mr. Doyle said. But in general, he added, fewer homes are insured than should be.
  The Federal Emergency Management Agency has designated the entire state of Rhode Island as flood prone, but as of 2006, less than 4 percent of households — about 15,100 residences — had flood insurance policies. In Connecticut, about 37,400 homes are insured against flood damage and in Massachusetts, 50,200.
  Some people have already had to deal with the effects of flooding after southern New England experienced the wettest July on record, according to the National Weather Service.
  But autumn is typically when New England sees the heaviest rainfall, Mr. Doyle said, so if you didn’t have any flooding, you’re not out of the woods yet. And if you did have flooding this past summer, be prepared for more.
  Homeowners should be aware that water damage in the basement is not covered by flood insurance. If you know your basement is prone to water, don’t keep valuables on the floor, and don’t put too much work into refinishing it.
  For flood maps and other information on flooding, visit www.fema.gov/hazard/flood/ or www.floodsmart.gov.

Insurance Agents Can Help You Choose the Right Auto Policy
By Kimberley Edgar

Make sure your auto insurance policy has the proper coverages.

  In this day of drive-through convenience, it can be easy to sacrifice common sense to save a few dollars and cents.
  It’s no different with insurance purchases, so take some time to understand the nuances of various coverages and what offers the best protection for you before buying them. They are more complex than Happy Meals, and while there are some things that can be do-it-yourself projects, choosing the right coverage is something that’s best achieved working with a knowledgeable professional.
  “The last place you want to learn you aren’t covered is at the scene of an accident,” said Frank Doyle, Senior Vice President of AAA Insurance. “You want the peace of mind you get from working with an insurance professional when choosing the right coverages, deductibles and taking care of the risk we all have on the road.
  “By placing all of your insurance together, you avoid the gaps that can be created when looking at each policy on its own. The best savings and best coverage are usually available when combining your home, auto and other insurance with one agency.”
  In Massachusetts, the dynamic of managed competition adds to the complexity of an insurance policy. Buyers can quickly follow a recipe for disaster when choosing coverage on their own because the best deal doesn’t always ensure the best coverage.
Licensed and trained professionals, AAA’s insurance agents will be able walk policy-holders through the coverages and explain how underinsuring often unwittingly exposes the policy-holder to risk, leaving them vulnerable.
  One example is minimum limits to comply with state law. While a policy-holder might meet the letter of the law by taking out coverage to carry the legal minimum, the practical reality is if that motorist rear-ends and totals a $50,000 Cadillac during an ice storm, the policy-holder will be responsible for the outstanding balance.
  In another scenario, a policy-holder might opt to carry lower bodily-injury protection and leave themselves vulnerable. Working with AAA’s trusted insurance professionals also means policy-holders aren’t hanging out there by themselves when there are questions or claims.
  AAA’s insurance agents assist when there’s an accident. They help avoid disputes with the company. They are available to take payments and are familiar faces when you call or visit the office.
  And when policy-holders compare apples with apples, part to part and coverage to coverage, they will find, most times, it is the same price – if not lower – to buy through AAA’s insurance agents.
  And, in essence, they are getting the services of insurance agents for free.

Take 5: Auto Loan Tips

Protect Your Home While Traveling
By Kimberley Edgar

Ask a neighbor to park a car in your driveway so it appears your house is busy with activity while you’re traveling.

  Members looking to enjoy some well-deserved R&R also can enjoy peace and security knowing their homes and cars are protected while they’re on the road.
  A good first step is to speak with one of AAA’s trusted insurance agents about protections and coverages. But here’s some advice from AAA’s Senior Vice President of Insurance Frank Doyle.
Rent a car
  Instead of worrying about possible damage to your vehicle while navigating the nation’s roads away from home, consider renting a vehicle while you’re away.
But if you choose this option, don’t assume you have the insurance coverage you need only to learn later you don’t.
  “The last thing you want to have happen is to drop off the car at the end of your trip and experience a world of hurt because they want to secure the value of the vehicle on your credit card,” Mr. Doyle said.
Howdy Neighbor
  If you’re friendly with your neighbors, let them know you’re going to be away and how to get in touch with you should anything arise. If your relationships are strong, you might ask them to park their cars in your driveway while you’re away so it appears as though the house is busy with activity. Family and friends are another good group to tap if you’re uncomfortable divulging these details in your neighborhood.
Shut off your water
  This is more applicable in winter months when the snowbirds vacate their homes in the Northeast and head to Florida.
Toys
  Those trampolines, motorcycles, bicycles and pools should be secured so they don’t leave the premises after you do.
Alarms
  Be sure to turn them on while you’re away. And, of course, don’t forget to lock all doors and windows.

Check Out Auto Insurance Quotes on AAA.com
By Kimberley Edgar

Car Insurance 101: What Parents of New Drivers Need to Know
By Kimberley Edgar

Lenders are Stricter Today, But Mortgages Are Still Available
By Kimberley Edgar

Attractive interest rates and the drop in home prices make this a historic, once-in-a-generation time to buy.

  AAA is helping the United States mark National Home­ownership Month this June with tips for home-owners and first-time buyers alike.
“We’re here to advise members and put them in the most appropriate mortgage possible,” said Deborah Imondi, Vice President of AAA Southern New England Bank.
First-Time Buyers
  Rates remain attractive – in the 4- to 5-percent range – for those looking to buy their first homes.
That, coupled with the drop in prices for many homes on the market, make this a historic, once-in-a-generation time to buy – despite the challenges the mortgage industry has faced in recent months.
  “Is there still money to lend? Yes, there is, but lenders are stricter,” Ms. Imondi said.
She advises first-time homebuyers to keep their paperwork – pay stubs and statements for credit cards and for checking or savings accounts and other assets – on file to demonstrate their income level and to paint their whole financial picture for lenders.
  Ms. Imondi reminds homebuyers – especially those trying for the first time – that an important part of buying a home is your credit score, and AAA has the tools to help you determine the score and make recommendations to boost it if that’s required.
Refinancing
  Homeowners whose properties have lost value might want to consider refinancing up to a loan-to-value ratio of 105 percent.
  The modification is permissible for those who owned a mortgage before Jan. 1 and through 2012. To apply for the program, you must be current in your mortgage – not delinquent.
  Ms. Imondi advises this might be particularly advantageous for anyone who’s seen changes in income – reduced overtime or number of hours worked, the loss of a second or third job, or involvement in a scenario where continued payment of the mortgage at the previous level could induce an imminent delinquency.
Members can visit www.makinghomesaffordable.gov for criteria on program eligibility.
Reverse Mortgages
  Homeowners at least 62 years old are eligible to tap into the equity they have built over the years and take a reverse mortgage – and the loan-amount limit has risen again, for the second time in less than a year.
  The ceiling rose to $625,500, from $417,000, and means seniors have potentially more equity available to them if they have a home with higher value.
  This helps people who own higher-priced homes or live in areas where houses carry higher values, and where they may have maxed out their equity.
  With the lower cap, they’d pay the same closing costs but not get as much equity. Now, the additional amount is available at the same price.
  The U.S. Department of Housing and Urban Development rules governing reverse mortgages permit a homeowner to use the proceeds from Home Equity Conversion Mortgage refinancings – the majority of reverse mortgages in the nation – to buy additional property, though the mortgaged property must be their primary residence, Ms. Imondi said.