Happy New Year {FIRST_NAME Valued Customer},

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1 Click to view this in a browser Happy New Year {FIRST_NAME Valued Customer}, "Reflect upon your present blessings - of which every man has many - not on your past misfortunes, of which all men have some." -Charles Dickens With the end of the year, let s look at the bright side of where we are is over, done, gone, thankfully. We have a lot of positives to look forward to in Real estate values are at or near the bottom, making it a great time to invest. Interest rates are as low as they ve been in 50 years. Think about it, you can get a mortgage for the same rate your parents did when you were a kid. We live in a beautiful state where the sun shines most every day. We could be buried in three feet of snow or just plain buried! All in all, it s not so bad! Here s wishing you all a happy and memorable new year! Perry Peterson Founder & CEO Adobe Financial "I have made it a rule of my life never to regret and never to look back. Regret is an appalling waste of energy... you can't build on it; it's only good for wallowing in." -Katherine Mansfield "Well, real estate is always good, as far as I'm concerned." -Donald Trump Sleepy Housing Market to Awaken in 2011 by Broderick Perkins The housing market will remain in hibernation this winter and, without the benefit of a federal home buying tax credit, keep snoring right on

2 through the spring, according to two recent studies. However, by the third quarter of 2011, pent up demand could stir the market from its slumber and generate a modest, groggy recovery. During its recent NARdigras 2010 Realtor Conference and Expo, the National Association of Realtors (NAR) forecast an "uneven recovery" next year. "Existing-home sales have shown some improvement, but the foreclosure moratorium is likely to cause some disruption and contribute to an uneven sales performance in the months ahead," said Lawrence Yun, NAR chief economist. "Tight credit and appraisals coming in below a negotiated price continue to constrain the market. Nonetheless, there appears to be a pent-up demand that eventually will be unleashed as banks resolve their issues with foreclosures and the labor market improves," Yun said. Likewise, the recent "Fiserv Case-Shiller Home Price Insight" reported that the home buyer tax credit delayed the housing market's slide to the bottom, and that will put off the recovery until late Fiserv and Moody's Economy.com expect that home prices will drop over the next four quarters in nearly all metro markets, before prices have a shot at stabilizing by the end of "Some of the largest declines in prices will occur in markets that had strong spring and summer 2010 price increases," said David Stiff, chief economist at Fiserv. "This is because the home buyer tax credit delayed the correction in home prices that is necessary to return housing affordability to its pre-bubble levels," Stiff added. According to NAR, Existing-home sales, down 21.2 percent year-over-year in the third quarter this year, are forecast to drop 24.7 percent in the last quarter this year. The declines reflect the absence of the federal home buying tax credit, available this time last year, NAR said. Next year, expect smaller sales declines of about 7 percent during the first two quarters, before sales begin to rebound with a near 26 percent year-over-year increase in sales, according to the forecast. "We ve added 30 million people to the U.S. population over the past 10 years, but sales are where they were in 2000, so there appears to be a sizable pent-up demand that could come to the (housing) market once the economy gathers momentum," Yun said. Yun said existing home sales will rise from 4.8 million this year to 5.1 million next year while housing starts are expected to rise to 716,000 in 2011 from 598,000 this year. Housing starts bottomed out at 554,000 in The boost in sales and starts is related to favorable growth in the Gross Domestic Product. NAR says it should grow 2.0 to 2.5 percent over the next two years. A projected and much needed 1.5 million additional jobs over the next two years will push the unemployment rate down to 8

3 percent by 2013, but it won't return to a normal level of about 6 percent until Mortgage interest rates are at record lows now, but by the time housing market recovery is under way, they are expected to rise, creating an average 4.9 percent next year, and 5.8 percent in 2012, Yun said. Median prices for existing homes, nationwide at $177,100 in the third quarter this year (down 0.6 percent a year ago) are expected to continue to decline to $165,900 into the first quarter 2010, before managing $178,900 by the third quarter next year, an expected peak for the year. New home prices, $218,000 in the third quarter, 2010 (up 2.5 percent from a year ago), are expected to continue rising each quarter in 2011 and peak out at $224,300 in the fourth quarter. Content Courtesy of Realty Times Raffle Giveaway! Each month we hold a drawing exclusively for our Adobe Insight subscribers. The prize will change each month so you must re-enter with each new issue you receive. This month we are giving away a gift certificate for an hour massage at Massage Envy including gratuity. To enter, your fully name, full address, and telephone number to newsletter@adobefinancial.com, with the subject January Raffle Entry. The drawing will be held at the end of each month. Must enter by January 28, 2011 to be eligible. Feel free to forward this to your friends and family using the link below so everyone has the opportunity to win! Forward this message to a friend December Winner: Denise Mouland What you need to know about reverse mortgages 1. These loans are now cheaper to take out Thanks to new federal rules, reverse mortgages don't have to sting as much at the outset. Previously these loans -- which let owners 62 or older borrow against their home and don't have to be paid back until the owner moves or dies -- always carried high upfront fees. A new option, called a HECM Saver, cuts the initial insurance premium -- one of the biggest costs -- from 2% to 0.01% of your home's value. On a $400,000 home, that means paying $40 instead of $8,000.

4 Another welcome change: more thorough mandatory counseling for potential borrowers, which is designed to make sure you really need a reverse mortgage, understand it, and can afford to stay in your home even after taking out the loan. 2. Competition is heading up Banks are also cutting deals on fees, which can add up. The traditional reverse mortgage, called HECM Standard, still carries that 2% upfront premium. On all types of these loans, origination fees can hit $6,000. And you're on the hook for closing costs, including an appraisal and title insurance. But today some lenders will pay more than half of the initial premium and waive origination fees, says John K. Lunde of analytics firm Reverse Market Insight. Start your shopping at the lender directory at reversemortgage.org. 3. Lower costs make the loans more versatile The new fee structure could make reverse mortgages appealing to far more homeowners. Up to now the high upfront fees have turned off most seniors\u0014 the majority of borrowers use the proceeds to pay off a regular mortgage. The HECM Saver, says Barbara Stucki of the National Council on Aging, "puts conventional wisdom on its head." For example, reverse mortgages let you opt for a line of credit. With no credit check needed and potentially lower fees than on a HELOC, the loan could be the best way to set up an emergency fund. 4. But shopping is even more complicated Picking the right loan remains tricky. Do you want a lump sum (with a variable or fixed rate?) or the variable-rate credit line or monthly payment options? The new HECM Saver adds another wrinkle: The amount you can borrow\u0014 a function of your age and your home's value\u0014 is lower than it is with a HECM Standard. A 65-year-old in a paid-off $300,000 Illinois home could net $182,000 with a traditional loan but only $146,000 with a HECM Saver, according to MetLife Bank. To see your options, visit AARP. 5. You (or your kids) will still pay a high price someday You may not feel a cash pinch now, but someone will later. No matter what kind of reverse mortgage you take out, you'll be charged not just interest but also a 1.25% annual insurance premium on the outstanding loan balance (up from 0.5%). You don't have to pay interest and premiums during the life of the loan (you are still responsible for taxes, homeowners insurance, and maintenance, though). Instead, the bill comes due when your house is sold. So your heirs will collect some cash only if the sales price is higher than the loan balance and total lifetime fees. Content Courtesy of George Mannes and CNNMoney.com 10 Reasons to Buy Owning a home has been a part of the American Dream for decades. If you are still unsure,

5 however, whether or not homeownership is the move for you, be sure to read these ten reasons to buy. 1. Low Interest Rates. It's true! Interest rates are currently at historical lows. This means over the course of your loan, you'll pay less interest. And it also means monthly payments will be a smaller, more manageable amount. 2. Mortgage Interest Deduction: While this deduction may not be available for much longer, for now you can still use this great tax advantage! 3. Stability: Studies have shown that homeownership not only increases community involvement, it also leads to safer neighborhoods, and higher graduation rates. 4. Affordability: Coupled with the low interest rates, affordability is the highest it's been in years. Prices fell in many areas and median incomes rose -- meaning you can get more bang for your buck. 5. Paying Towards Ownership. Instead of paying a landlord, you are making an investment in your future. Every month your payment goes towards something you'll eventually own and that will have worth and value. Renting only makes the landlord richer! 6. Appreciation: Average appreciation rates vary widely depending on the condition of the local market and demand, but anywhere from 4 to 6 percent annually is considered average. This means the longer you stay in your home, the more your home will be worth. 7. Home equity: This building of worth over time (see number 6) means that if you need to make improvements to your home, you will be able to tap into its equity to finance repairs and additions. 8. Gardening: Many households are embracing the organic movement, and families have begun again to raise their own food. Even the White House has its own victory garden. Owning your own home (in most cases) means you will have your own land to cultivate. 9. Roots: Young and old alike seek out places where they belong. Owning a property, and taking your first steps towards putting down roots, can mean the difference between a house and a home. 10. Monthly Payments: Once your home is paid off -- you won't have monthly payments anymore. Apart from insurance, property taxes, and repairs, monthly expenses are minimal. In today's market, many buyers are finding, as well, that their monthly house payments are less than what they'd pay in rent! Content Courtesy of Realtytimes.com Adobe Financial Corporation 1845 S. Dobson Rd. Suite 117 Mesa, Arizona MB8762

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