As technology advances, we all replace our cell phones on what seems to be an all too frequent basis. Not only does it seem like a waste, but there is a risk that toxic materials in discarded cell phones can impact our environment.
So what is the best way to savely discard old cell phones? I recently discovered a program which will get you a long distance calling card in exchange for your old cell phone! Not only can you sleep well knowing that you are responsibly handling used electronics, you also get a phone card to use or give to a friend. See the details here.
To take advantage of this program, send me an e-mail with your address, and I will send you the postage paid envelope which will hold two cell phones. You simply enclose your old phone(s), and drop it in the mail!
Send your address to: peter @ klmmortgagegroup.com, and use the subject: Cell Phone Recycling
Tuesday, December 27, 2005
Thursday, December 22, 2005
Is Right Now a Good Time to Buy a Home?
The article found here discusses research done by the Illinois Real Estate Lawyers Association of Arlington Heights. While most home shoppers in the midwest hibernate for the winter, consider the following quote from the president of the aforementioned association:
"[T]he holidays create an advantage for buyers because there is less likelihood of a bidding war with another buyer, and with the slowed market, real estate agents can 'roll out the red carpet to shoppers who are serious about shopping.'"
"[T]he holidays create an advantage for buyers because there is less likelihood of a bidding war with another buyer, and with the slowed market, real estate agents can 'roll out the red carpet to shoppers who are serious about shopping.'"
Monday, December 19, 2005
Why Use a Mortgage Broker?
I am frequently asked what the advantage a consumer has when working with a mortgage broker rather than a bank. While this question can lead to a lengthy discussion, I will summarize my response to three points:
1.) Personal service
2.) Wide assortment of products and rates
3.) Loan packages not available from banks
Personal Service
As e-commerce continues to grow mortgages have become a commodity in the eyes of some consumers. While rate and closing costs are important, so is the experience of closing on your home. As a mortgage broker, I have access to the best rates and products available (see below). Moreover, at KLM Mortgage Group, we work as a team and strive to provide the best possible experience to out customers. When I meet with a new client, I get to know them. I ask what their financial goals are, what the most important aspect of the transaction is for them, and how I can best help them move forward with their purchase or refinance. With every new client, I consider the first meeting the beginning of a long term relationship, and make it clear that I am going to be available to answer questions or help out any way I can whether it be tomorrow of in a few years.
Products and Rates
Because I do not work directly for any one lender, I have the ability to find the best rate available on the product my client needs. We have worked hard to develop relationships with national lenders. Depending on my clients’ credit scores and lending needs, I will be able to utilize one of a handful of lenders to accomplish their goals. For clients with perfect credit or a few blemishes, I have the ability to match my client with a lender which specializes in borrowers just like them. Thus, I can be a specialist in many types of loan products.
Loan Packages
Many savvy consumers ask me about PMI, or Private Mortgage Insurance. PMI is insurance which protects the lender in case a borrow defaults on a mortgage. The cost of PMI is the responsibility of the borrower, is not tax deductible, and does not protect the borrower! Because Fanny Mae and Freddie Mac require PMI on loans which exceed 80% of the value of the property, most banks will offer mortgages to consumers who have less than 20% down payment, but the consumer is stuck paying PMI for years and years. There is a better option! For people with good credit, a mortgage broker has the ability to use one or more lender, and use two loans to obtain the best of both worlds—less than 20% down, and no PMI. For example, a first mortgage for 80% of the purchase price may be supplemented by a second mortgage of 10% of the purchase price. The borrower brings in 10% down payment, and has no PMI! When the interest on the second mortgage is tax deductible and the overall monthly payment is less than a single 90% loan with PMI, the borrower wins!
My goal is to make sure all of my clients gets the best loan available, and understand the loan product I can provide. A smooth transaction with all expectations met is my goal with each and every client! Call today for your free mortgage consultation, 414.453.7620.
1.) Personal service
2.) Wide assortment of products and rates
3.) Loan packages not available from banks
Personal Service
As e-commerce continues to grow mortgages have become a commodity in the eyes of some consumers. While rate and closing costs are important, so is the experience of closing on your home. As a mortgage broker, I have access to the best rates and products available (see below). Moreover, at KLM Mortgage Group, we work as a team and strive to provide the best possible experience to out customers. When I meet with a new client, I get to know them. I ask what their financial goals are, what the most important aspect of the transaction is for them, and how I can best help them move forward with their purchase or refinance. With every new client, I consider the first meeting the beginning of a long term relationship, and make it clear that I am going to be available to answer questions or help out any way I can whether it be tomorrow of in a few years.
Products and Rates
Because I do not work directly for any one lender, I have the ability to find the best rate available on the product my client needs. We have worked hard to develop relationships with national lenders. Depending on my clients’ credit scores and lending needs, I will be able to utilize one of a handful of lenders to accomplish their goals. For clients with perfect credit or a few blemishes, I have the ability to match my client with a lender which specializes in borrowers just like them. Thus, I can be a specialist in many types of loan products.
Loan Packages
Many savvy consumers ask me about PMI, or Private Mortgage Insurance. PMI is insurance which protects the lender in case a borrow defaults on a mortgage. The cost of PMI is the responsibility of the borrower, is not tax deductible, and does not protect the borrower! Because Fanny Mae and Freddie Mac require PMI on loans which exceed 80% of the value of the property, most banks will offer mortgages to consumers who have less than 20% down payment, but the consumer is stuck paying PMI for years and years. There is a better option! For people with good credit, a mortgage broker has the ability to use one or more lender, and use two loans to obtain the best of both worlds—less than 20% down, and no PMI. For example, a first mortgage for 80% of the purchase price may be supplemented by a second mortgage of 10% of the purchase price. The borrower brings in 10% down payment, and has no PMI! When the interest on the second mortgage is tax deductible and the overall monthly payment is less than a single 90% loan with PMI, the borrower wins!
My goal is to make sure all of my clients gets the best loan available, and understand the loan product I can provide. A smooth transaction with all expectations met is my goal with each and every client! Call today for your free mortgage consultation, 414.453.7620.
Monday, December 12, 2005
Another Rate Hike Coming?
The Fed’s last scheduled meeting of 2005 and the next-to-last meeting in the 18 ½ year tenure of Fed Chairman Alan Greenspan takes place tomorrow ( 12/13/05 ). Continuing the trend of increases in the Fed Funds Rate, another .25% bump is expected.
What does this mean to you? The Fed Funds Rate is the rate at which banks lend each other money. Accordingly, there is a direct correlation between the pricing of comsumer loans and the fed funds rate. If you have a Home Equity Line of Credit (HELOC), it is linked to the Prime Rate. When the Fed Funds Rate changes, the Prime Rate will follow, and the interest rate on your HELOC will change as well.
If you are seeing higher rates on your HELOC than you are comfortable with, consider one of two options:
1. Refinance your first mortgage and HELOC into a new first mortgage to lock in and lower the interest rate on the money you owe for your home; or
2. Refinance your HELOC into a fixed rate second mortgage.
Option two is cost effective and does not require the same amount of documentation as refinancing a first mortgage. However, given the increase in home values over the last five years, many home owners find that they owe less than 80% of the value of their home, and qualify for a single fixed rate mortgage which with no private mortgage insurance. With mortgage rates on the rise, now is a good time to consider refinancing.
I am available for a no-obligation credit and mortgage review. Call me today at 414.453.7620 or e-mail peter @ klmmortgagegroup.com to make an appointment!
What does this mean to you? The Fed Funds Rate is the rate at which banks lend each other money. Accordingly, there is a direct correlation between the pricing of comsumer loans and the fed funds rate. If you have a Home Equity Line of Credit (HELOC), it is linked to the Prime Rate. When the Fed Funds Rate changes, the Prime Rate will follow, and the interest rate on your HELOC will change as well.
If you are seeing higher rates on your HELOC than you are comfortable with, consider one of two options:
1. Refinance your first mortgage and HELOC into a new first mortgage to lock in and lower the interest rate on the money you owe for your home; or
2. Refinance your HELOC into a fixed rate second mortgage.
Option two is cost effective and does not require the same amount of documentation as refinancing a first mortgage. However, given the increase in home values over the last five years, many home owners find that they owe less than 80% of the value of their home, and qualify for a single fixed rate mortgage which with no private mortgage insurance. With mortgage rates on the rise, now is a good time to consider refinancing.
I am available for a no-obligation credit and mortgage review. Call me today at 414.453.7620 or e-mail peter @ klmmortgagegroup.com to make an appointment!
Friday, December 09, 2005
Retail Credit Cards and Your Credit Score
If you are shopping in the brick and mortar world this season, you are probably being accosted by store employees urging you to sign up for a credit card through the store you are in. Sure, it sounds attractive to get the 5% discount on everything you are buying today, but is it really a good deal?
Here’s where a little knowledge about how credit works can benefit you in the long run. The first thing I do in an initial meeting with a client is go through their credit report line by line. I explain how each account on the report impacts the overall credit score, and we discuss long term strategy to maintain or improve credit ratings. A credit card is considered “revolving credit,” meaning you always have access to funds, and you can charge up a balance and then pay it off, and the cycle repeats itself or “revolves.” There are several factors you should consider when you open a retail credit account.
1.) Credit Inquiries: Every time a potential lender checks your credit, it has an impact on your score. Applying for a new credit card may impact your score by a few points.
2.) Time Since Last Account was Opened: Opening new credit may lower your credit score. The longer your accounts have been open, the better.
3.) Proportion of Balance to Credit Limit: Retail credit cards typically have a low credit limit. To optimize your scores, keep the balance on your revolving accounts below 1/3 of the available credit.
When you apply for a mortgage, your credit score is a huge factor in determining what loan products you qualify for. While you may save $10 today by opening that retail credit card, is it worth jeopardizing your ability to get the best rates on a mortgage in the coming months?
Something to think about! Feel free to add a comment to this entry with your questions or thoughts!
Here’s where a little knowledge about how credit works can benefit you in the long run. The first thing I do in an initial meeting with a client is go through their credit report line by line. I explain how each account on the report impacts the overall credit score, and we discuss long term strategy to maintain or improve credit ratings. A credit card is considered “revolving credit,” meaning you always have access to funds, and you can charge up a balance and then pay it off, and the cycle repeats itself or “revolves.” There are several factors you should consider when you open a retail credit account.
1.) Credit Inquiries: Every time a potential lender checks your credit, it has an impact on your score. Applying for a new credit card may impact your score by a few points.
2.) Time Since Last Account was Opened: Opening new credit may lower your credit score. The longer your accounts have been open, the better.
3.) Proportion of Balance to Credit Limit: Retail credit cards typically have a low credit limit. To optimize your scores, keep the balance on your revolving accounts below 1/3 of the available credit.
When you apply for a mortgage, your credit score is a huge factor in determining what loan products you qualify for. While you may save $10 today by opening that retail credit card, is it worth jeopardizing your ability to get the best rates on a mortgage in the coming months?
Something to think about! Feel free to add a comment to this entry with your questions or thoughts!
Thursday, December 08, 2005
Free Money for Shopping Online!
Are you shopping online this holiday season? Do you have a Discover card? If so, don't miss out on the 5% cash back Discover is offering on all online purcheses through December 31. Sign up here!
Wednesday, December 07, 2005
Do You Have A Plan?
It is important to have a financial game plan. You can bet that the names we all associate with big money--Warren Buffet, Bill Gates, Donald Trump--all grew their fortunes by developing a plan and sticking to it. While some of my clients have had a financial plan in place for years, others are just getting started in their "adult" financial lives.
While not everyone has enough assets to warrant hiring a financial advisor, this does not mean that a financial check up shouldn't be performed on a regular basis. I have a confession to make. When I entered the working world, I saved less than I should have. At the time, I was focused on the fact that I had student loans to repay, there was fun to be had, and the reality of earning and spending an income hadn't really sunk in yet. In retrospect, adding a few hundred or even thousand pre-tax dollars to my savings would not have crimped my lifestyle too much, yet my bottom line today would be even better.
Give yourself a self check up today. Do you have an emergency fund? Do you know what percentage of your income you are saving? What are your goals? At least spend some time thinking about your finances, and if you really want to be at the head of the class, put it on paper. Still not convinced that you should review your finances today? Give yourself a reality check here.
An article on JS Online today talks about kids learning to save early. Yes, even elementary school kids can benefit from thinking about how they will pay for college. If these kids are thinking about their financial future, adults should be too!
While not everyone has enough assets to warrant hiring a financial advisor, this does not mean that a financial check up shouldn't be performed on a regular basis. I have a confession to make. When I entered the working world, I saved less than I should have. At the time, I was focused on the fact that I had student loans to repay, there was fun to be had, and the reality of earning and spending an income hadn't really sunk in yet. In retrospect, adding a few hundred or even thousand pre-tax dollars to my savings would not have crimped my lifestyle too much, yet my bottom line today would be even better.
Give yourself a self check up today. Do you have an emergency fund? Do you know what percentage of your income you are saving? What are your goals? At least spend some time thinking about your finances, and if you really want to be at the head of the class, put it on paper. Still not convinced that you should review your finances today? Give yourself a reality check here.
An article on JS Online today talks about kids learning to save early. Yes, even elementary school kids can benefit from thinking about how they will pay for college. If these kids are thinking about their financial future, adults should be too!
Tuesday, December 06, 2005
"When Debt is OK"
I check the Today's Headlines page on fool.com every day, as it has digest articles on interesting personal finance topics. There is a no frills article about good and bad debt on Motley Fool's website today. Check out the article here: fool.com
One service I provide my clients is a Debt Review. We sit down and review all accounts reported on the credit report, and discuss which debts need to be addressed first in order to attain long term financial success. Call me today if you would like to schedule a Debt Review! The office number here at KLM Mortgage is 414.453.7620.
Peter
One service I provide my clients is a Debt Review. We sit down and review all accounts reported on the credit report, and discuss which debts need to be addressed first in order to attain long term financial success. Call me today if you would like to schedule a Debt Review! The office number here at KLM Mortgage is 414.453.7620.
Peter
Monday, December 05, 2005
The Week Ahead
No major economic news is on the docket for the week of 12/5/05. Mortgages rates are up about .125 over last Monday, continuing the trend of the last few weeks. Given the lack of any noteworthy economic reports this week, I expect that rates will either stay at their current level or continue to slowly rise this week.
Hope you are finding great bargains as you shop for your loved ones this holiday season. A recent Salary.com article indicates that the typical American is spending 2.4% of their income on the holidays. That's significant, make sure you are getting the best bang for your buck by doing online research, and planning your gift giving ahead to avoid impulse buying.
Hope you are finding great bargains as you shop for your loved ones this holiday season. A recent Salary.com article indicates that the typical American is spending 2.4% of their income on the holidays. That's significant, make sure you are getting the best bang for your buck by doing online research, and planning your gift giving ahead to avoid impulse buying.
Saturday, December 03, 2005
Check Out My Links!
On the right hand side of the blog, I've placed some handy links that I use regularly. Here are explanations of what they are:
KLM Mortgage Group: Our company web site. Keep an eye on it as we add more personalized information in the future.
Mortgage Market Guide: This is a newsletter which I subscribe to. It is a fantastic source of information on the bond market and the status of the economy. Each week this link will take you to the current installment of the newsletter. If you would like to receive it by e-mail each week, e-mail me at peter klmmortgagegroup.com with the subject MMG Subscribe Blog.
CNN Money: A useful source of information on daily news regarding finances. Not highly technical, but easily digestable.
Motley Fool: A great web site about personal finance.
Milwaukee Journal Sentinal: The web site of the local daily news paper.
Do you have a suggestion for another web site I should link? Feel free to post a comment and tell us about it!
KLM Mortgage Group: Our company web site. Keep an eye on it as we add more personalized information in the future.
Mortgage Market Guide: This is a newsletter which I subscribe to. It is a fantastic source of information on the bond market and the status of the economy. Each week this link will take you to the current installment of the newsletter. If you would like to receive it by e-mail each week, e-mail me at peter
CNN Money: A useful source of information on daily news regarding finances. Not highly technical, but easily digestable.
Motley Fool: A great web site about personal finance.
Milwaukee Journal Sentinal: The web site of the local daily news paper.
Do you have a suggestion for another web site I should link? Feel free to post a comment and tell us about it!
Friday, December 02, 2005
This Week in the Economy
Interest rates ticked up a bit this week on signs of a strong economy. We had some big economic news this week, including the monthly unemployment report, the Chicago PMI (a manufacturing index), and the GDP Chain Deflector (a good index of inflation). Job growth is now back at the rate we saw prior to Hurricanes Katrina and Rita, and the manufacturing sector is strong with inflation in check. A healthy economy is great in the long run, and mortgage bonds will produce lower returns in a healthy economy, which in turn creates a rising interest rate environment.
Also of interest, this week reports were released on personal income and spending. Fortunately, personal income is rising faster than personal spending. The result: We are now, as a society, saving NEGATIVE .7% of our income (a month ago it was negative .8)! That's right, we are still spending more than we earn! Now is a good time to review your emergency fund to determine if you still have enough of a cash cushion on hand, and make sure you are contributing enough to your retirement savings to meet your goals.
Also of interest, this week reports were released on personal income and spending. Fortunately, personal income is rising faster than personal spending. The result: We are now, as a society, saving NEGATIVE .7% of our income (a month ago it was negative .8)! That's right, we are still spending more than we earn! Now is a good time to review your emergency fund to determine if you still have enough of a cash cushion on hand, and make sure you are contributing enough to your retirement savings to meet your goals.
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