SCOTTSDALE - Now that entrepreneurs can choose to live almost anywhere that broadband connections and convenient airports exist, more are turning the relocation decision into both a business and personal one.

So it was only a matter of time that some list maker melded those traditional and always contentious rankings of the best places to live with the best places to start a business.

And thus we get Scottsdale ranking No. 25 among "The 100 Best Places to Live and Launch," as picked by Fortune Small Business magazine. Only two other Arizona communities, Oro Valley at No. 44 and Prescott at No. 92, made the list.

Topping the list was Bellevue, Wash., for its talented workforce and growing downtown. The state with the most communities ranked, at nine, was California.

It was the first time the magazine, part of the Time Inc. empire, had compiled such a list based on business launch-ability and livability. It published the rankings on its Web site in late March and in its print edition in April.

Writers and editors looked for "towns that combine a great business environment with alluring leisure opportunities," the magazine said.

Selected from 4,000 places

From a consultant's list of 4,000 places, they crunched numbers ranging from tax rates and startup activity to housing affordability (within 120 percent of the metro area's median), then looked for natural beauty and active downtowns.

They cut the list to 1,000 places, then interviewed local officials and business owners to narrow it down to the 100 best places, writer/editor Maggie Overfelt said.

Overfelt got the metro Phoenix assignment in part because her father recently moved from California to Gilbert and started his own accounting practice. She said she zeroed in on Gilbert, Tempe and Scottsdale, and the staff ended up giving the Scottsdale the nod because of its nightlife and downtown retail scene.

"We wanted that nightlife, that livability criteria," she said.

Tourists, entrepreneurial spirit

Scottsdale fit the best-places bill with its large entrepreneurial community and high volume of tourist traffic, capped off by the ability to hike Camelback Mountain, golf, and dine at five-star restaurants, Overfelt wrote. She pegged Scottsdale's other "pros" as its culture and nightlife, and its "cons" as its relatively high cost of commercial space and lots of competition.

She also said warehouse space and the overall cost of living are more affordable than in other major cities. Affluent tourists and Scottsdale's revitalized downtown also made the city stand out.

Boutique owner Joy Li, who has lived in Scottsdale for eight years and opened Studio Joy Li in November at the Scottsdale Waterfront, called the magazine's description pretty accurate.

"It's a wonderful place to live as far as quality of life, and you can have the support of the community, the state and the city in encouraging small businesses," she said.

Scottsdale is up-and-coming

Compared to saturated markets like New York and Los Angeles, Li thinks Scottsdale is an up-and-coming place where clients previously couldn't find her contemporary clothing designs. She gets resort guests from Minnesota, Colorado and New York who then go home and rave about their finds.

"The word of mouth is unbelievable. It's very powerful," she said. "They're taking the word and spreading it out in different parts of the country."

These types of rankings help spread the word about Scottsdale, but they typically are not companies' sole reason for locating here, said Harold Stewart, acting general manager for Scottsdale's Economic Vitality Department. Available land and the quality of education are part of the mix, too. And while Scottsdale's commercial space is expensive compared to other parts of the Valley, that is part of being a successful community, he said.

"The value of a ranking like that is that it helps you become part of their list of chosen places to explore," Stewart said. "It's a very beneficial thing, very helpful for us to say . . . 'Look at our ranking.' "

Fortune Small Business plans to revisit the list again next year, Overfelt said. It's eager to collect more statistics and hear the opinions metro Phoenix small-business owners have of what does or doesn't make their community good for living and launching.

You hear quite a bit lately that "the Fed is cutting the interest rate." Maybe you've been considering a refinance, and you're waiting to move forward till the Fed takes action again. But be smart about waiting and watching. A Fed cut doesn't directly affect long term rates (for instance a 30 year fixed mortgage), but it does impact long term mortgage rates. The problem is the impact might not have the result you've been waiting for.

Who is the Fed? Well, it's really the Federal Reserve. And when the Fed cuts rates, it usually cuts the Fed Funds Rate, which is the rate banks lend each other money. However, when the Fed lowers the Fed Funds Rate, Prime Rate, the rate banks give their best customers, usually drops as well. Ok, that's great. But what does that really mean to the average person on the street? It means that anything that has an interest rate tied to Prime is directly affected by the Feds' rate cut. Typically, these are short term loans. For instance: a credit card or a Home Equity Line of Credit (HELOC). In general, these rates decline when the Fed lowers rates. On the flip side, a Fed rate cut means your savings will perhaps not yield as much interest and your CD (certificate of deposit) won't be at such a great rate. So, it's not all good.

Why aren't mortgages directly affected? Because mortgage rates are typically longer term rates and are influenced by buyers and sellers in the bond market. Daily movements in the bond market cause mortgage rates to change. That's why you might get a quote from a loan officer on Tuesday, and on Wednesday, your quoted interest rate has increased .125%. The Fed lowers rates to help stimulate the economy. Ultimately a healthy economy is good for the real estate market. Jesse Lehn, Senior Vice President for Mortgage Investors Group, believes, "...a liquid real estate market is beneficial for the mortgage market and that keeps rates competitive." So, when the Fed lowers rates, indirectly it can help mortgage rates, but there is no direct correlation.

Another misconception is that mortgage rate changes occur in direct relation to when a Fed rate cut happens. In actuality, most mortgage rate changes, positive or negative, occur regardless of whether the Fed is actually meeting. That's because the mortgage market anticipates what the Fed is going to do.

A good loan officer should have their finger on the pulse of the market, but again it's a gamble. Remember to have a target interest rate in mind if you want to lock a loan but are watching the market. Trying to lock an interest rate on the day the mortgage rates have reached their lowest point in a year is like trying to get a royal flush in poker. It happens, but it's not a realistic goal. It just means you were lucky. Just stick to your home financing goals and consider the big picture, and you'll be fine.