Answer: Essential military, Homeland Security, Boarder Patrol, Air Traffic Control, Federal Prisons, and the Post Service, which is self-funded, will continue to operate as normal. However, approximately 800,000 Federal employees would be furloughed, shutting down FHA, VA, and USDA just to name a few.

FHA/VA would be inconvenient, but would not hurt the mortgager business unless the shutdown was prolonged (30 days or more). We would not be able to get FHA/VA loans insured or guaranteed but we would still be able to approve, close, and fund those loans. USDA would be a little different in that if the loan was not approved by the field office, it would not get approved until workers physically returned. This would delay closings unless the loan had been prior approved by both PrimeLending and the field office.

Fannie Mae/Freddie Mac would not disrupt business as they are under conservatorship and not considered to be Federal employees (best of my knowledge). Ginnie Mae could be a factor as they would be shut down, but at this time I am not sure what the impact would be on issues pools that retain FHA/VA loans.

At this point, lawmakers are trying to reach a compromise with so much at stake. We believe a last-minute agreement will happen but that has yet to be seen. Bottom line is PrimeLending should be able to operate without any issues unless a shutdown happens AND is prolonged. We’ll update you with new info as we see it.

As far as the market is concerned, 10-year notes are off 3/32’s (yield 3.56%), mortgage backs are unchanged, and stocks are off 61 points on the big board.

If you or someone you know has questions about home financing, please call Max Leaman (512) 293-1239.

The financial situation that the world is facing these days many people are trying to find a way to save, save, save. To save more money it is a great idea to make your home energy efficient. Your monthly hydro bill will be decreased if you make your home energy efficient.

Insulation is a key to maintain the comfort of your house inside. If you have the right insulation put into your home you will see your power bills drop. But to have your home insulated well you must also have your floors, ceiling, basement walls, overhangs, and interior walls insulated. When air can leak in it is costing you money. Make certain that all of the cracks and the crevices are sealed.

You can help make your home energy efficient by replacing your lighting fixtures with energy efficient models. You should make use of your dimmer switches also because this saves energy and money. Another great way to save on your power bill and make you home energy efficient is to open up your curtians and blinds and let some natural light pour in.

When you are using your home appliances you are using a lot of energy. The best way to save energy here is to shop for new appliances that have the energy star. The expense of these appliances might be more but in the end you will be saving.

One of the best ways to make your home energy efficient is to install solar panels. They use natural resources to create energy. Solar panels can come in the form of a solar thermal collectors that help the suns energy heat water. What a great way to use the suns energy.

Josh manages an Austin Real Estate website, where users can learn about the Austin market and check out all active listings, including Allandale Houses For Sale.

Details on Tax Deductibility for MI:

• MI is deductable for purchase and refinance loans;
• Your loan must close by December 31, 2011;
• For a full premium deduction, your household income must be at or below $100,000;
• For each $1,000 of income over $100,000, your premium deduction is reduced 10%;
• In the first year, your premium deduction is prorated based on which month your loan closes;
• You can apply your premium reduction to your primary residence and one other residence purchased for personal use;
• Monthly, annual, and single MI premiums are eligible for preimum deduction.

Please note: PrimeLending does not provide tax advice. Consult your tax advisor for questions about your eligibility for this tax deduction.

If you have questions about your home financing, get answers! Please contact us as soon as possible for expert mortgage advice. Call (512) 293-1239 or email maxl@primelending.com.

They’re prosperous, innovative, and they’ll generate plenty of jobs, too.

“Austin is arguably the the country’s best crucible for small business, offering a dozen community programs that form a neural network of business brainpower to help entrepreneurs. Now overlay that net with a dozen venture-capital funds and 20 or so business associations, plus incubators, educational opportunities and networking events. Mix all these elements in what many call a classless society, where hippie communalism coexists with no-nonsense capitalism, and you’ve got a breeding ground for start-ups.

Don’t discount the fun factor: In the self-proclaimed live-music capital of the world, music and business creativity riff off one another. The city’s famous South by Southwest festival, where concerts, independent film screenings and emerging technology overlap, is a prime example.”

Where will the Formula 1 Track be built in Austin, TX? A track site is not disclosed at this time.

Formula One World Championship Limited and Formula One Administration Limited (together, the F1 Commercial Rights Holder) and Full Throttle Productions, LP, promoter of the Formula 1 United States Grand Prix™, announce that a historic agreement has been reached for Austin, Texas to serve as the host city of the Formula 1 United States Grand Prix™ for years 2012 through 2021.

“We are extremely honoured and proud to reach an agreement with the F1 Commercial Rights Holder. We have been diligently working together for several years to bring this great event to Austin, the State of Texas and back to the United States. All parties involved have a great amount of trust and confidence in each other and are committed to establishing the Formula 1 United States Grand Prix™ in Austin, Texas as a prestigious global event,” stated Tavo Hellmund, Managing Partner of Full Throttle Productions, LP.

Read the full article on the Formula 1 website.

Click here to see the Facebook page for Formula 1 in Austin, TX.

A majority of economists in the National Association of Business Economists’ semiannual survey found the Fed’s current stance of rates near zero percent is appropriate. A growing number, however, believe the U.S. central bank’s policy’s are too stimulative, according to a poll of 203 members taken Feb. 4-22.

“A majority believes that a rise in interest rates is both likely and appropriate in the next several months,” said NABE President Lynn Reaser.

Click here to read the full article.

It’s often very difficult to predict where mortgage rates are headed and most of the time when asked where rates are headed the best answer is “they’ll go up and they’ll go down.” In today’s market however there’s an event on the horizon that almost certainly will drive mortgage rates up- the Fed will stop buying mortgage backed securities (MBS) this spring. Buying MBSs has been an effective way to hold mortgage rates down.

Many experts are expecting rates to jump a half a point or more after the program wraps up at the end of March. Take a look HERE to see how historically low Austin mortgage rates are today. It looks like waiting to get Austin mortgage financing could be dangerous to one’s financial health!