Milwaukee Wisconsin Mortgage Minute with Peter Kazaks, J.D.

Important Changes to Mortgage Underwriting Are Around The Corner!

2009-10-15T09:54:00.000-05:00

Fannie Mae recently announced changes which will impact anyone who is looking to buy or refinance a home. The most significant change will reduce the borrowing power for many people who have debt other than their home—which is most people!

Part of the underwriting process for every mortgage is evaluating the debt to income ratio for the borrower. This is a fancy way of saying that the underwriter is required to look at how much of a borrowers income is being spent on fixed monthly expenses such as paying the mortgage, car loans, student loans, and credit cards. In the past, so long as a borrower had excellent credit, underwriters were allowed to approve mortgage applications for borrowers who were spending more than half of their income every month. On December 12, 2009, the allowable debt to income ratio will be reduced significantly and no exceptions will be allowed regardless of how good a borrower’s credit is.

This change in how Fannie Mae views a borrower’s ability to pay will impact many people who have not had any issues obtaining a mortgage in the past. As a mortgage expert I am following these changes closely as consumer lending on the whole continues to evolve in response to the economic fallout we have been going through recently. If you are considering buying or refinancing a home, there is no better time than now to talk to a true mortgage professional about your options. Peter Kazaks is a Mortgage Consultant at USA Funding Corp. He can be reached at 414.807.7277 or peterkazaks@gmail.com.

Still Time to Get $8,000 FREE!

2009-10-14T11:49:00.002-05:00

I keep seeing signs in the yard of homes that are for sale saying something to the effect of "This home qualifies for the $8,000 first time homebuyer tax credit!" Well, every home could qualify for the credit... What matters is that you, the home buyer, qualify.

And right now, what really matters, is that you take action!

Here's what you need to know, right from the IRS!

“For first-time homebuyers this year, this special feature can put money in their pockets right now rather than waiting another year to claim the tax credit," said IRS Commissioner Doug Shulman. “This important change gives qualifying homebuyers cash they do not have to pay back.”

If you buy your home BEFORE DECEMBER 1, 2009, you may qualify for this credit. With just over six weeks left in this IRS program, you still have time to find and buy your new home before the credit expires! But, you don't have much time to wait around.

Call me today to explore your options for buying your first home and claiming your $8,000. Learn more about me at: www.MortgageMKE.com

First Time Homebuyer Tax Credit

2009-07-17T13:08:00.002-05:00

A new client contacted me this week and asked--"Are you an approved lender for the $8,000 first time home buyer tax credit?" Interesting question. The fact of the matter is, the mortgage professional you work with does not make a difference in qualifying for the credit! But, working with a true mortgage professional (rather than a "mortgage guy") will make a difference in how the whole process goes for you!

The next few posts here will help you choose the right mortgage professional. Today's tip:

Ask the following question: What are mortgage interest rates based on?

The only correct answer is Mortgage Backed Securities or Mortgage Bonds, NOT the 10-year Treasury Note. While the 10-year Treasury Note sometimes trends in the same direction as Mortgage Bonds, it is not unusual to see them move in completely opposite directions. DO NOT work with a lender who has their eyes on the wrong indicators!

I Love These!

2009-07-09T14:01:00.003-05:00

Here's an e-mail I just received from a client of mine. I helped them buy their home and have since refinanced them as rates dropped, effectively cutting more than FIVE YEARS off of the the payoff schedule for their loan!

Peter,
It is has been a pleasure working with you on our three transactions. You are thorough and easy to work with. We have no problem recommending your services to friends and family.
Take care,
Peter and Karina

Tax Credit for Homebuyers

2009-02-18T10:48:00.001-06:00

Just signed and sealed… a $787 Billion Stimulus Plan made up of tax cuts and spending programs aims at reviving the US economy. Although the package was scaled down from nearly $1 Trillion, it still stands as the largest anti-recession effort since World War II.
Home owners and potential homebuyers stand to gain from key provisions in this stimulus plan. Here is what we know as of today...

First-time homebuyers who purchase homes from the start of the year until the end of November 2009 may be eligible for the lower of an $8,000 or 10% of the value of the home tax credit. Remember a tax credit is very different than a tax deduction – a tax credit is equivalent to money in your hand, as opposed to a tax deduction which only reduces your taxable income.
The tax credit starts phasing out for couples with incomes above $150,000 and single filers with incomes above $75,000. Buyers will have to repay the credit if they sell their homes within three years.

Tax Incentives to Spur Energy Savings and Green Jobs — This provision is designed to help promote energy-efficient investments in homes by extending and expanding tax credits through 2010 for purchases such as new furnaces, energy-efficient windows and doors, or insulation.

Landmark Energy Savings — This provision provides $5 Billion for energy efficient improvements for more than one million modest-income homes through weatherization. According to some estimates, this can help modest-income families save an average of $350 a year on heating and air conditioning bills.

More Help for Homeowners in the Future
Another thing to keep an eye on in the coming weeks is President Obama’s plan to help struggling borrowers before they are faced with a default on their mortgage.
According to reports, the Obama administration is discussing plans to help borrowers who are struggling to stay afloat, but who have not yet fallen behind on their payments. At this point, details are scarce; however, reports indicate that President Obama is looking to spend approximately $50 Billion to directly help homeowners before they face foreclosure and financial disaster.

Exciting News

2009-02-05T15:09:00.003-06:00

Dear KLM Family:

I'm sorry I've been slow with blogging the last few months. I have been very busy with lots of transactions! Some clients have benefitted from lower monthly payments thanks to a lower 30 year fixed rate mortgage, a few have refinanced into even lower rate 15 year fixed mortgages, and I continue to work with quite a few clients who are going through divorces. And in spite of the slowing real estate market, I have even been financing new home purchases!

Anyway, on to the exciting news.

As you read this blog, I am proud to announce that KLM Mortgage Group has merged with USA Funding Corp! Most of our clients are already familiar with USA Funding as the vast majority of the mortgages KLM has placed over the last few years were funded by USA Funding.

Hopefully you recognize that we have always worked tirelessly to stay ahead of the curve in our ever changing industry. The merger is strategic and vital as it will allow us to continue to provide you with the best possible service, rates, and mortgage products.

I look forward to continueing to be your preferred mortgage professional. Thanks to the long standing relationship between KLM and USA Funding the transition will be seamless for you, our valued clients.

Watch for more exciting updates to be posted!

Peter
414.807.7277

Inside Story: False Illusions and What You Need to Know

2009-02-04T15:01:00.002-06:00

The Fed's been at it again, offering words that sound encouraging at first blush, confirming that their buying program of Mortgage Backed Securities is in full swing and will continue as needed. Of course, the media will pick this up and offer their own interpretation, saying "Good news, the Fed's words on continuing their purchasing program mean that rates will continue to drop lower, and remain low into the summer..." But is this really what that means? Not so.

Here's the truth.
Yes, the Fed has been buying Mortgage Bonds, but if you look at what they are purchasing, they are buying a lot of FNMA 30-yr 5.5% and 5.0% Bonds...which won't have much of an impact on present interest rates. Why? First, see the Fed's purchases for yourself by hitting THIS LINK.

So why is the Fed buying these Bonds? Well if you think about it, it's very smart of the Fed...and maybe even a little sneaky...because 5.5% Bonds actually represent outstanding mortgages with rates of 6 - 6.50%, which are precisely the loans being refinanced at today's great interest rates.

Stay with me here...
With rates at present low levels, many of the mortgages in these FNMA 5.5% pools being bought up by the Fed will be refinanced and paid, thus giving the Fed a quick recoup on some of their investment. And this is likely a big reason why the Fed said they could continue this purchasing program beyond June, if necessary. Bottom line, the Fed buying these higher rate coupons will not necessarily help rates to move lower, as their actions do not impact the loans being originated at today's low rates.

Here's the most important part.
Sometimes I talk to clients who are in a situation where it makes sense to refinance right now, and save $100 per month for example. But when they hear the media throwing around teases of lower rates ahead, they decide to hold off on making the decision to save the $100 per month right now, in the hopes of gaining another $15 per month in additional savings with a lower rate than where we stand presently. Now clearly, rates could turn higher, and this window of opportunity could pass them by entirely.

The clincher is this:
Even if those clients ultimately are correct in timing the market, and eventually grab that lower rate and save another $15 per month - think of what they have lost by waiting. While they delayed, they lost the savings they could have gained by taking action sooner - or in the example used, $100 - for every single month they waited. So even if they got lucky and obtained the rate they were looking for, it could take years to make up what they lost by waiting.

I don't want anyone to miss an opportunity by either waiting, or not understanding what is at stake. Let's talk further on this - call or email me and let's discuss what this might mean for you.

Peter Kazaks
414.807.7277
peter@peterkazaks.com

Vote!

2008-10-06T11:39:00.000-05:00

With all the advertising and press it is hard to ignore the upcoming presidential election. Regardless of your views, I encourage you to vote!

Google has set up a great web site where you can enter your home address and get information on registration and polling locations. Fortunately for us in Wisconsin you can register to vote at the polls on election day! Polling locations will be on the web site mid-October. I encourage you to take a look at this and send the link to a friend!

Here it is: http://googlemaps.com/vote

Fear vs. Courage

2008-09-18T10:46:00.000-05:00

Long time no blog! Sorry about that folks. It's been a busy summer! I managed to get married and stay busy with home buyers and divorce clients all summer. I'm excited to have a few minutes to blog, and wanted to share a thought with you about first time home buyers.

Owning a home is what most people think of when they talk about "The American Dream." Quite frankly, if someone is middle aged and is still a renter, most people will wonder what is wrong. Has this renter failed to move forward financially? Are they afraid to take on the committment of owning a home?

The real estate market has been in turmoil the last few months. No doubt about it. What does this mean for first time home owners? Good deals. Mortgage rates are great right now. FHA and WHEDA still allow folks with modest down payments or credit blemishes to get mortgages with great rates.

Don't let fear of the real estate market keep you on the sidelines. A home is a long term investment and now is a great time to evaluate your buying power. If owning a home is a goal for you, have the courage to research it and find out if now is the right time to buy.

If you or anyone you love is considering buying a home, please call me to find out what options are avialable. I am happy to help! I'm in the office at 414.807.7277.

It's Tax Day!

2008-04-15T09:53:00.000-05:00

Tax day is a good day in my book, as homeowners get to take some nice deductions on their income taxes! It's also a good day as it also happens to be the birthday of a good friend of mine. How could I forget his birthday?

Here's a tax day fun fact: In 1916 federal law was amended to replace the word "lawful" with "income" in order to make illegal income taxable.

Learning Never Ends

2008-04-02T09:36:00.000-05:00

The Wauwatosa Recreation Department is once again presenting Learning Never Ends: An Evening For Adults on April 17. The program includes 21 "mini-courses" on all sorts of great topics ranging from canine obedience to olive oils and vinegars from around the world. I will be presenting a class called "Manage Your Credit; Manage Your Life." Here is a description:

Did you know that insurance companies, credit card companies, mortgage lenders, and even employers want to know how good your credit is? Learn how to have the best possible credit through five secrets of credit scoring.

I would love to see you there! For $10, you can sign up for two courses, each of which lasts about an hour and 15 minutes.

For more information or to sign up, visit the Wauwatosa Rec department's web site by clicking HERE.

Party!

2008-03-31T14:54:00.000-05:00

KLM Mortgage is turning three! My how time flies. We are celebrating on Friday April 18, and you are invited! We will have food, fun, and prizes from 8 a.m. to 8 p.m., please stop by!

See Me Speak (again)!

2008-01-02T10:29:00.000-06:00

I'll be speaking on credit at the monthly Apartment Association of Southeastern Wisconsin membership meeting on January 21 at 7 p.m. at the Best Western Midway, 1005 S. Moorland Rd., Brookfield. The presentation is titled "Credit Reports - Manage Your Credit - Manage Your Life!"

I hope to see you there!

See Me Speak!

2007-12-17T11:40:00.000-06:00

From the Southside Landlord Compact:

Subject: SouthSide Landlord Compact Meeting
DATE: December 20th, 2007
TIME: 11:30 AM - 1:00 PM
PLACE: Old Country Buffet Restaurant
4902 S. 74th Street

Peter Kazaks, a member of the SouthSide Landlord Compact and board member of theApartment Association of Southeast Wisconsin, is a highly respected officer at KLM Mortgage Group who will share his knowledge on consumer credit and answer as many of our questions as time permits.

Conforming Loan Limits Stay The Same

2007-12-04T10:06:00.000-06:00

The Office of Federal Housing Enterprise Oversight (OFHEO) recently announced that the conforming loan limit for single-family mortgages purchased by Fannie Mae and Freddie Mac in 200 would remain at the 2007 level of $417,000. What does this mean? For most of the U.S., if a mortgage is for more than $417k, it is considered a jumbo mortgage and the interest rate may be higher than on a conforming Fannie Mae mortgage.

FHA

2007-11-29T10:17:00.000-06:00

Exciting news! Here at KLM Mortgage Group we have been approved by FHA! This means that I now have some new loan tools in my arsenal. FHA insures mortgages for some folks who don't qualify for Fannie Mae loans. In the last few years the "sub prime" market has been the most convenient source of mortgages for borrowers who don't qualify for Fannie Mae loans, but with the recent fallout in the sub prime market it has gotten much more difficult for borrowers with credit problems and not much cash in the bank to get a mortgage. FHA provides a great opportunity for these borrowers.

Some highlights of FHA insured mortgages:

No minimum credit score
Reserves (cash in the bank after closing) are not required
No prepayment penalties

I'm excited to be able to offer FHA loans for people who previously would have benefitted from the now almost extinct sub prime products. Please call me if you would like to learn more!

Fannie Mae Makes Some Changes!

2007-11-07T10:14:00.000-06:00

In response to the rising delinquency rates and the losses they cause to lenders, Fannie Mae announced yesterday that there will be new pricing adjustments for borrowers with a 679 or lower credit score, and for loans where the total loan to value is over 90%.

What does this mean to borrowers? The current underwriting system allow borrowers who are overall very strong (good income, plenty of assets, good equity in the house) but who have less than perfect credit to obtain the best rates available. Under the new structure, credit scores will have a direct impact on rate, and only borrowers with a 680 or better middle credit score will qualify for the best rates.

For the last year I've been talking about how credit is becoming more and more important. Now Fannie Mae has put it in black and white and it will start impacting borrowers in January for mortgages closing starting March 1, 2008.

On top of the increased importance of credit scores, there are pricing changes in the works for transactions where there is subordinate financing, for example a second mortgage or home equity line of credit. For the last few years there have been great mortgage products available which allow borrowers to get the best possible rate on an 80% first mortgage regardless of whether or not there is a second mortgage behind it, even up to 95% total loan to value. While the guidelines are a bit too complex to summarize here, the gist of it is that for most borrowers, if the down payment is less than 10%, there may be a slight increase in rate for the first mortgage.

In spite of all the doom and gloom in the headlines lately it is still a good time to buy a home. It will still be after the new guidelines go into place, but credit and down payment are becoming more and more important.

As always, feel free to call or e-mail with questions--or even leave a comment here on my blog!

Trick Or Treat Times

2007-10-26T10:18:00.000-05:00

I'm looking forward to passing out candy on Sunday! As usual, I'll dress up to do it, this year probably as a cowboy with a fantastic Wrangler rodeo shirt and jeans, boots, hat and belt buckle making for a pretty complete outfit.

What are you doing for a costume--for yourself or your kids? Feel free to leave a comment to this post with what you are doing!

Here are the trick or treat times for Milwaukee county:

Bayside: 2:30-5:30 p.m.
Brown Deer: 1-4 p.m.
Cudahy: 2-4 p.m.
Fox Point: 1-4 p.m.
Franklin: 4-7 p.m.
Glendale: 1-4 p.m.
Greendale: 1-4 p.m.
Greenfield: 4-7 p.m.
Hales Corners: 4-7 p.m.
Milwaukee: 1-4 p.m.
Oak Creek: 4-6 p.m.
River Hills: 1-4 p.m.
St. Francis: 4-7 p.m.
Shorewood: 3-5 p.m.
South Milwaukee: 2-4 p.m.
Wauwatosa: 1-4 p.m.
West Allis: 1-3 p.m.
West Milwaukee: 1-3 p.m.
Whitefish Bay: 4-6 p.m.

A Note On Lenders

2007-10-12T12:09:00.000-05:00

In the past week I have had two clients ask me how many lenders I work with. It seems that many people think that a mortgage broker who works with a ton of lenders is more qualified to help them than a broker who only works with a couple. While access to the right loan products is very important for me to effectively help you, my client, it is even more important that I know the products and underwriting guidelines and have a deep relationship with the lender who will ultimately be funding the mortgage.

I do have access to many, many lenders. However, I have deep relationships with just a few. Because of this, I have the ability to call my account executive or an underwriter directly--and even drive to their office to meet with them face to face. When you work with a True Mortgage Professional, you benefit not only from your relationship with that person, but also from the business relationships that professional has built over years of working with the same partners who all contribute to a smooth transaction.

The better question would be, "tell me about the relationship you have with the lender which you plan to use for my mortgage." After all, isn't your mortgage the one which is really important?

Giveaways!

2007-09-27T14:24:00.000-05:00

"Who Else Wants an Opportunity to Win All Sorts of Prizes Just for Being a Valued Member of the KLM Mortgage Group Family?"

Here at KLM headquarters we all decided that it was time to start having some fun. The best part about it is YOU are going to receive all the benefits! Starting in September 2007 we will be giving away prizes each and every month as our way of showing our appreciation for all of your loyalty and support over the years. Prizes will include Starbuck's gift cards, Apple iPods, Local Area Restaurant Gift Certificates, including Joey Buona's and much much more. There will be two giveaways each month. The first will be a general drawing that all of you will be entered into just by being a valued KLM family member. The second drawing will be specifically for anyone who has a birthday in that month. Unfortunately, over the years some of our information for birthdays did not come with us. This is where you can help us so you can have a chance to win. Just enter your information below so we can update our records and make sure you get entered into all of the drawings you are eligible for.

Wisconsin Foreclosures

2007-09-19T09:37:00.000-05:00

According to the latest statistics, there are three times as many foreclosures currently going on in Wisconsin as there were this time last year. This is a direct result of rate adjustments on the massive number of subprime mortgages placed in the last five years. If you or someone you know has a subprime mortgage and an upcoming rate adjustment is going to make it hard for you to make your payments, there are options. FHA has recently announced a new program which allows favorable refinance options for people who may not be able to afford their mortgage payment due to a rate adjustment.

Call me today to learn more at: 414.453.7620

Read more about the latest foreclosure statistics in this Business Journal article.

Organize Your Life!

2007-08-28T10:53:00.000-05:00

Many of my clients are experiencing an important life event--buying their first home, vacation home, or investment property, or downsizing to a condo after adult children have moved on. I don't know how many times I've heard a client say, "I just don't know how I'm ever going to get all my stuff organized for this move!"

Fortunately there is help available! Whether you are moving or just need some advice on how to best organize your kitchen, office, basement or garage, I suggest you check out Organized Transformations. They even offer a FREE 30 minute consultation. Take a look at their web site and give them a call. You will be glad you did!

Emergency Mortgage Market Update

2007-08-15T11:23:00.000-05:00

Current State of Mortgage Financing...What's Going On?
Anyone watching or reading the financial news over the last few weeks has seen a lot of angst over the state of the mortgage industry. In fact, one of the larger lenders in the US, American Home Mortgage, was forced to shut down operations recently. But why? What is happening, what does all this mean to you and most importantly... what should you be doing do right now to make sure you are protected?

Here's the scoop.
Over the past several years, many loans were made to homeowners with somewhat non-traditional or "non-conforming" situations, be it a poor credit history, inability to document income, or any number of factors that do not fit within the traditional "box" for home loans. These loans are often called "Sub-Prime", or "Alt-A", meaning that they were somewhat riskier in nature than A credit, prime, or traditional loans. Another type of "non-conforming" home loan is one where the credit and income might be perfectly fine, but the loan amount is higher than $417K, which is the current maximum loan that can be done using pools of money from mortgage giants Fannie Mae (FNMA) and Freddie Mac (FHLMC). If the loan amount is more than $417k, it can certainly be done - it's called a "jumbo loan" - but the end money comes from private institutions, not from the large government sponsored entities of Fannie and Freddie.

Most non-conforming loan product rates popped significantly higher recently. Here's what happened.
Companies making Subprime or Alt-A loans will charge a premium for taking on these loans, because they know that traditionally, they might have a higher rate of default and delinquent payments within that risky pool. But lately, default and foreclosure has been on the rise - partly due to the fact that with credit tightening and a soft real estate market, many troubled homeowners are unable to refinance or sell in order to get out of trouble. So now, these lenders are demanding a much higher "risk premium" for taking on these pools of loans, as they see the rates of default are climbing higher.

But since institutions are purchasing pools of these loans from the lenders, sometimes months after the borrower has actually closed at a given rate, the increase to the risk premium means that the institutions buying these pools of loans are willing to pay less, and in this case less than the principle amount of the loans. Multiply that times thousands upon thousands of loans...and you have millions upon millions of dollars in loss for the company trying to sell the pool at a much lower price than they were expecting. This is called a "liquidity crisis", and is exactly what happened to American Home Mortgage, they simply got caught holding too many "hot potato" loans, forced to sell them at massive losses...and eventually they had to make the decision to close the doors and stop the bleeding.

Further, even when a lender is able to take some losses, they may be subject to a "margin call". This means that as their losses and risk premiums increase, the value of their loan portfolio decreases. As the value decreases, the credit lines that are secured by those portfolios begin to issue margin calls as the value of the asset that they are secured on is now diminished. This is exactly like margin calls in the Stock market. If you have a loan against a Stock that is losing value, you will get a "margin call" and need to pay down the loan, as the underlying Stock is losing too much value to be considered adequate collateral any longer. So for the big lenders, as their portfolio is losing value due to increased risk premiums and losses...the margin calls start coming in, and they are required to pay down their balances. In turn, this means that they have less availability to fund their new loans, which then exacerbates the problem.

In response to seeing this situation play out in the demise of American Home Mortgage, lenders of other non-conforming loan products increased their interest rates dramatically almost overnight to be better prepared - and likely over-prepared - for increased risk premiums down the road. Even though loans above $417K are not presently suffering from increased delinquencies like the Subprime and Alt-A loans are, these rates popped higher as well, because they are being purchased by smaller private entities that can't afford to take on any margin of risk.

What happens next? The major damage is probably already done, and the present situation will likely settle out over the coming year. Lenders will stop pulling products off the shelf, and the rates on products that have moved so significantly higher now should trend lower down the road as delinquency rates stabilize.

But here are a few important things YOU should do right now:

ONE: Even if you are not presently in the market for a home loan of any type, make sure that your credit standing is as solid as possible. Many people in the market for a home loan didn't expect they would have a need, and didn't plan in advance to ensure their credit would qualify them for the best possible financing. With no immediate need for a home loan, time is on your side... why don't we take a few minutes together and just make sure you are prepared, should a need arise down the road? Call or email me right away.

TWO: If you are in the market for a home loan, or know someone who is - understand that now is the time to be working with a real qualified professional who can keep you informed of changes in the market and get your loan funded quickly. Now is NOT the time to be playing the risky game of trying to scour the entire nation to find someone who promises to save you a paltry amount on costs, or deliver a rate that seems too good to be true.

Your home and your financing are just too important, and times have changed. I am here to help and advise during these volatile times - and would welcome calls from you, your friends, family, neighbors or coworkers.

Regards,Peter

What Is Going On?

2007-08-14T11:24:00.000-05:00

The news seems to be dominated with stories about issues in the mortgage market these days. Foreclosures are up, subprime loans are more difficult to qualify for, and 100% financing requires more documentation and better credit.

What does this mean to you? It depends. In the last two weeks I have been working to stay on top of underwriting changes being announced by lenders. For home buyers with good credit and a down payment there is really no change in the mortgage products available. For clients with good credit and no down payment, we need to consider a single loan with mortgage insurance for two reasons--first, it may provide a lower monthly payment and income tax scenario, and second, if there is no accepted offer on a new home the loan products available may change between now and when you find your home. I try to cover all the possibilities early in the process so that there are no surprises.

Every borrower is different. If you would like to learn more about how the changing mortgage marketplace may affect you, call me today at 414.807.7277.

Market Update

2007-07-20T10:24:00.000-05:00

While the last two months have been a wild ride in the mortgage market the last week has been relatively stable. Rates on 30 year fixed mortgages are currently hovering in the 6.75%-6.875% range with no points. While a run in the stock market like the one experienced this week (the Dow closed at a record high) typically leads to a drop in the bond market and accordingly a rise in mortgage rates, we held steady based on the fact that economic indicators this week had only a minor impact on the bond market. While it may seem that rates are higher than they have been lately, 30 year fixed rates are still a little bit better than they were a year ago.

Today the stock market is slipping due to poor earnings reports for Google and Caterpillar and that means money is flowing into the bond market. Could it mean mortgage rates will improve in the next few days? Maybe!

As always, feel free to e-mail me at peter@mortgagemke.com or call 414.807.7277 if I can be of assistance to you.

Peter

Market Instability

2007-06-11T11:30:00.000-05:00

There has been lots of turmoil in the mortgage market over the last month, and the continued slide of mortgage bonds means the trend of higher interest rates will likely continue.

Last Thursday's drop in the bond market was the largest single day loss in over three years. Friday we saw a reaction to this with a bit of a bounce but this morning we are right back on the downward curve. There are some important economic reports coming out later this week with information on the status of our retail and manufacturing sectors. Even if we receive good news here on the home front international economics will make it tough for the market to find stability.

This puts a bit of pressure on people who have adjustable rate mortgages (ARM) coming up on an adjustment as 30 year fixed rates have gone up a bit. Nonetheless, it may still be the right move to refinance out of an ARM to ensure that 12 months down the road the rate on an ARM doesn't have the chance to get even worse. Remember, once you are my client, when rates improve enough, I will pay the majority of your closing costs!

Have You Bought Firewood Recently?

2007-05-25T11:53:00.000-05:00

The emerald ash borer, an invasive insect, may have made its way to Wisconsin. This insect kills Ash trees by eating the outer layer of wood under the bark. If you have bought firewood recently, there is a chance that it is harboring this insect, and you should read more HERE.

KLM Fore! Kids is Coming Up!

2007-05-15T11:12:00.000-05:00

The second annual KLM Fore! Kids charity golf outing to benefit Children's Hospital of Wisconsin is coming up on June 22! Join me for an afternoon and evening of golf, fun, and fundraising for a great cause. We will be enjoying a shotgun start for this scramble format golf outing. Call or e-mail me today at 414.453.7620 or peter at klmmortgagegroup.com for info or visit our web site: http://www.klmmortgagegroup.com/golfouting

It's Almost Time...

2007-04-16T21:53:00.000-05:00

To put away the shovels? I sure hope so! But, what I really meant to write about is April 17. Are your taxes filed? Did you get a refund? Are you aware of the tax benefits of owning rental properties? Landlording is not for everyone, but for those of us who work hard at it, it is financially rewarding. I have owned rental properties for over five years and serve on the board of directors for the Apartment Association of Southeastern Wisconsin. Call me today at 414.453.7620 to learn more about buying your first rental property!

Peter

Don't Be A Statistic!

2007-03-26T11:29:00.000-05:00

A recent study predicts that 13% of the adjustable rate mortgages originated between 2004 and 2006 will result in foreclosure. That is pretty scary! If you have an adjustable rate mortgage, I'd like to offer you a FREE mortgage review. This entails meeting with me to review your mortgage documents, and a thorough review of the details of your mortgage, including a discussion of WHEN your rate will adjust, HOW MUCH it will adjust, and how this will change your PAYMENT. From there, we will consider when and if it would be appropriate to refinance your mortgage to make sure you don't get caught in a payment you can't afford.

Contact me by Friday, March 30 to take advantage of my Free Mortgage Review offer!

peter@mortgageMKE.com or 414.453.7620

Credit Scoring in Layman's Terms

2007-03-05T14:58:00.000-06:00

The first thing I do when I meet with a new client is go through their credit report line by line. Here is the basics you need to know to make sure you have good credit!

There are five factors in credit scoring:

Types of credit: 10% A mix of credit is a good thing, but not very important in the grand scheme of things. Revolving credit (credit cards and retail credit cards) are fine if managed well. I recommend avoiding retail cards if possible. Better to have a few universally accepted credit cards than a bunch of retail cards to keep track of.

New credit: 10% Are you shopping for credit? If so, you represent a greater lending risk. Opening new credit cards shows that you plan on spending money soon. Not a good risk factor to a mortgage lender. Do not open new credit cards if you are buying a home or car soon, as it can have a direct impact on the loan product/rate you qualify for. It is acknowledged that shopping for a home loan or car loan may be important, and accordingly multiple credit pulls for a mortgage within a 14 day period count as one pull. Same goes for auto lending.

Length of credit history: 15% Generally speaking, the longer you have been using credit, the better your score can be. This factor considers both a.) the single oldest current account you have, and b.) the average age of your accounts. Think of it this way: The longer you have been using credit, the more chances you have had to prove yourself as responsible, or conversely, the more chances you have had to screw it up.

Amount owed: 30% Are you maxing out your credit cards? If so, you are a risky lending prospect. Do you have balances on a whole bunch of accounts? Same deal. A balance on an installment loan (cars, student loans) or a mortgage is fine. However, the best kind of revolving credit is old, currently open, and has a zero balance. If you do have a balance, try to keep it below 1/3 of the available amount.

Payment history: 35% Have you been on time with your payments? Three elements: Recency, frequency, and severity. In other words, how long has it been since you made a late payment, how often have you been late, and how late have you been? Late payments do have a significant impact on your score, but the longer it's been since your latest oops, the less impact it has on you.

As always, feel free to contact me with any questions at: Peter@MortgageMKE.com

Do You Know What Is On Your Credit Report?

2007-02-13T17:00:00.000-06:00

The first thing I do when I meet with a new client is go through their credit report line by line. All of the information it contains is important. Your credit score is the most important piece of information in determining whether or not you qualify for the best mortgage financing available.

If you plan on buying or refinancing your home in the next 12 months, contact me today to learn how you can save thousands on mortgage interest! I'll share the credit scoring secrets I have learned by being an industry insider!

Call Peter at: 414.453.7620
E-Mail Peter at: peter@mortgageMKE.com

Mortgage Insurance Is Now Tax Deductible

2007-02-13T16:19:00.000-06:00

As of January 1, 2007, private mortgage insurance (PMI) is deductible on your Federal tax return so long as your income is less than $100k. For people who are already paying PMI this is a great deal! For new clients it warrants a discussion.

Over the last few years there has been a clear advantage to avoiding PMI by limiting the amount of a first mortgage to 80% of the value of a home. We have accomplished this by placing two loans--a first for 80% and a second for anywhere between 5% and 20% of the value of the home, depending on how much cash a buyer has available to bring to closing. The advantage of doing so is twofold: lower monthly payment, and a higher tax deduction--mortgage interest is tax deductible, and PMI was not.

Now that PMI is tax deductible, it will be a better option than two loans for some borrowers. Because the monthly cost of PMI will vary based on credit score, amount of down payment, and type of property, for many borrowers a two loan package will still be the better option. However, is some cases, PMI will be the more cost effective option month after month--not to mention saving up to a few hundred dollars in closing costs by only closing one loan instead of two.

If you are in the market for a new home or a refinance, contact me to learn more about which option is best for you. If you are working with someone else and they haven't at least discussed this with you they are not a True Mortgage Professional. My job is to give you the information you need to make an educated decision. This includes discussing all of your options and empowering you to make a decision.

Call me today at: 414.453.7620

Young Women Buying More Homes Than Young Men!

2007-01-17T17:28:00.000-06:00

Interesting stat from the The National Association of Realtors (NAR):

"[Y]oung women in the 25-34-age bracket bought 1.76 million homes in the
period from July 2005 to June 2006, accounting for 22 percent of the market.
That's up from 14 percent a decade ago. The number of single men buying
homes stayed flat at 9 percent during the same period. "

I have certainly seen this to be true in my business.

Read more in a Realty Times article here.

Avoid Paying Taxes!

2006-12-19T14:34:00.000-06:00

I know, it sounds too good to be true, right? While you can't get out of paying that property tax bill you recently received, you may not have to pay taxes on the increase in value of your home when you sell it. Certain requirements must be met, but the bottom line is that an individual can take a $250,000 gain on a home sale, and pay NO tax on that gain. There is a good article on the Motley Fool's web site which gives some of the basics. Click here to read it, and talk to you tax professional for more information.

Buying a House Is Easy!

2006-11-20T11:50:00.000-06:00

One of the reasons I read the Motley Fool website (www.fool.com) is that it combines some humor with financial advice. I recently revisited an article posted there last spring about buying a home, which makes some basic, but important points about what you should do when preparing to buy a home.

Make a budget
Calculate costs of ownership
Meet with me to review your credit
Research neighborhoods
Learn the floor layout at the closest Home Depot or Lowe's!

Read the whole article here.

Mortgage Knowledge is Power!

2006-11-09T14:38:00.000-06:00

Of all the things I bring to my relationship with clients, the one they most often mention is that I give them the knowledge and information they need to empower them to make a sound financial decision. I don't make decisions for my clients, rather I provide the best mortgage options available, and help them make an educated decision. I am not a fan of treating a home like a piggy bank, and am much more likely to discuss planning to be debt free than strategizing how to tap equity in a home. Even so, there are many scenarios where refinancing a current mortgage makes sense.

There are some good ideas in this recent article on RealtyTimes.com. Two which I thought were noteworthy:

Take advantage of the great rates available on fixed rate mortgages to prevent monthly payments from going up when todays crop of adjustable rates hits the first rate adjustment; and
Use equity in a home to make a significant down payment on an investment property (I suggest 20% to get the best financing on the investment property).

Call me today to find out what your interest rate will be if you decide to get out of your ARM!

Peter Kazaks * 414.807.7277 * Peter@MortgageMKE.com

Vote Today!

2006-11-07T11:05:00.000-06:00

This morning I voted. As a homeowner, small business owner, and tax payer, I have the right and moreover the responsibility to vote. I urge you to do the same!

Please take advantage of the opportunity to make your voice heard in our government.

"Feels Like the First Time"

2006-11-01T13:07:00.000-06:00

The first thing I do with all of my new clients is go over their credit report line by line, ensuring that they are aware of everything that shows up, and discussing how to protect or earn a great credit score. I had an initial meeting yesterday with a married couple who are in the process of selling their first house and shopping for a larger home to accommodate their growing family. While this couple had been through the financing process before, they had never seen their credit report, let alone had someone explain it to them. After we had discussed the good (and a little bit of bad) which makes up their credit profile, the husband turned to the wife and said, "this feels like the first time I have applied for a mortgage." Was this cheesy? No. The fact of the matter is that many mortgage originators work hard to get potential clients in front of them and "close the deal" as fast as possible. This is not the approach I take--a home is the largest financial decision you will make, and as such, I take it very seriously. It is not unusual for a new client to tell me they did not know much about credit before their meeting, and this particular client hammered the point home in an entertaining way.

If you or someone you know can benefit from advice given by a True Mortgage Professional, someone who is an expert on credit as well as mortgage products, please urge them to talk to me by calling 414.807.7277 or sending an e-mail to: Peter@MortgageMKE.com

2006-10-12T14:04:00.000-05:00

Bonds worsened yesterday in response to information in the Minutes from the Federal Reserve’s last meeting. These minutes reflect discussions among decision makers at the meeting where, for only the second time in two years, short term interest rates stayed the same rather than going up.

Some comments in the minutes show that the Fed may raise rates again, talking about continued economic strength in the new year, and whether or not the recently lower energy prices (see my recent post below on this topic) would return to their previously high levels.

WHAT DOES THIS MEAN TO YOU? Rates ticked up a bit today based on the news, and uncertainty about inflation and the strength of our economy will be present for the immediate future. If you are not already working with me or one of my colleagues at KLM, is your mortgage broker watching this stuff?

Good News About Energy Prices!

2006-10-10T16:43:00.000-05:00

While the weather is predicted to be 5.9 percent colder this winter compared to last year (booooo!) it is still expected to be 2.1 percent warmer than normal (yay!). Still, the cost of heating your home should be lower than last year, because natural gas prices have gone down. I know, I know, you want solid numbers, right? On average, those of you who have a natural gas furnace can expect to spend about $119 (13 percent) less this winter to keep your home warm.

Source: the Energy Information Administration

Breaking News!

2006-10-06T10:06:00.000-05:00

KLM Mortgage combats cavities this Halloween season! Local area dentists not happy!
KLM Mortgage Group is officially banning candy this Halloween season. Bring your kids in to the KLM office during the week of October 23rd – 27th for a candy-free and sugar-free trick or treat bag.

100 available ● First come, first serve.

Join Us In Our Efforts

2006-10-06T10:04:00.000-05:00

Do you know what it feels like to be outside on a frigid, cold, Wisconsin winter day, fingers and ears frozen because you can’t afford a hat or gloves? Probably not! Did you know that thousands of children in the greater Milwaukee area experience this every year?

Do your part to keep a child warm this winter. The KLM Mortgage family has kicked off the 1st Annual "KLM - Keeping Kids Warm in the Winter." For every hat or pair of mittens or gloves donated, KLM will add 3 more.

Drop off (or mail) all kids and womans gloves, mittens and hats now through October 27th , at our office: 7119 W. North Avenue, Wauwatosa, Wisconsin 53213. We will be distributing all donations the first week of November to local area shelters including: Battered Women Shelter, Salvation Army, La Causa and the Milwaukee Rescue Mission.

How good will it feel to help keep a child warm this winter?

Are The Rate Tides Turning?

2006-10-04T14:55:00.000-05:00

Rates have continued to decline this week! I have called a number of my clients whose current rate warrants a low cost refinance to take advantage of the lower rates currently available on 30 year fixed mortgages. Call me today for information on how YOU can save money every month!

What is going on in the mortgage market? Inflation seems to be in check, and on Friday St. Louis Federal Reserve Bank President William Poole made the follwing statement: "If inflation pressures are easing, even if only gradually, and there is a genuine prospect that inflation will return to the comfort zone, then I see no reason to accelerate the decline in inflation by maintaining a restrictive policy in the face of declining employment."

What does that mean in plain ENGLISH? The long series of rate hikes which ended in August is certainly over, and if conditions are right, we may see rate reductions in the not so distant future. There is a jobs report coming out this friday, which provides an important measure of how strong the economy is and will impact policy decisions by the Fed in the coming month.

Keep an eye here, and be ready to take advantage of my low or no cost refinance offer if your current mortgage is not the best available!

2006-09-22T14:46:00.000-05:00

What's News In The Economy?

This week's manufacturing data shows that the long series of Fed hikes has slowed the economy even more than anticipated. While this means that the desired result is here, there is some concern that the action which has been taken was more than needed. The bottom line is that the economic data released this week tells us that further rate hikes are very unlikely. This means that interest rates for second mortgages and home equity lines of credit are going to stay stable at least through the end of 2006, which is good news for consumers.

Mortgage rates are currently at or near their best rates of the last six months. Combine that with the talk of the current "buyers market" environment, and now may be the time to take action if you have been considering a home purchase.

As always, I am available to help at 414.807.7277.

Testimonial

2006-09-07T14:56:00.000-05:00

To whom it may concern:

I am writing this letter as an endorsement for Peter Kazaks. As a first time homebuyer, I felt Peter did an exceptional job educating me on how to buy a home. When I first met with Peter, he sat me down and explained to me about my finances. He also pointed out what price range I should consider to look in to; if I still wanted to live the lifestyle I am use to. Once I found my house and was ready to put a purchase order in, Peter explained all of the language into owning that house. He told me not only what a mortage means, but also what escrow means. Peter also explained all of the different mortgage rates and showed me which one he felt was the most beneficial. I didn’t expect Peter to work with my realtor as close as he did. He made sure I felt comfortable with my offer and ensured me that my realtor was also working for my best interest. Once it came to closing, Peter called me the night before to make sure he could answer any concerns I might have before going into the meeting. Thus, that morning I did not have and unexpected surprises and felt very relaxed with the closing. Overall, my experience with Peter was fantastic and I look forward to Peter helping me with my next purchase.

Sincerely,
Barbara W
Wauwatosa, WI

Happy Labor Day!

2006-09-04T19:00:00.000-05:00

I hope you are enjoying the Labor Day holiday with friends or family. Do you know what Labor Day celebrates? From the Department of Labor's web site:

Labor Day, the first Monday in September, is a creation of the labor movement and is dedicated to the social and economic achievements of American workers. It constitutes a yearly national tribute to the contributions workers have made to the strength, prosperity, and well-being of our country.

No Money Down?

2006-08-28T10:35:00.000-05:00

Home ownership is available to renters who don't even know it! Did you know that in 2005, 43% of all first time home buyers made their purchase with no money down? A study by the National Association of Realtors provides that statistic.

There are fantastic mortgage products available for buyers with no money down--including the recently released First Time Home Buyer program available only in Wisconsin which features a LOW fixed rate for 30 years and NO Private Mortgage Insurance. If you are a first time home buyer, call me today at 414.453.7620 to find out if you qualify!

Good News For Mortgage Rates

2006-08-15T17:37:00.000-05:00

This morning’s economic headlines brought some good news of lower inflation, and Bonds are enjoying a nice pop higher as a result. The Fed is also likely breathing a sigh of relief as their recent decision to pause has some confirmation. What does this mean for you? Mortgage rates aren't jumping any more (for the moment) and have even gone down a touch. We anticipate this to continue for the immediate future.

Call me with any questions!

2006-08-10T11:43:00.000-05:00

THE TECHNICAL STUFF:
Yesterday the Fed decided to take a pause in raising short-term interest rates leaving the Fed Funds Rate at 5.25%. What does this mean? The Fed thinks inflation is probably back in check.

What is interesting is that the vote to pause wasn't unanimous. Richmond Fed President Jeffrey M. Lacker had voted for another 25bp rate hike. Because the hike wasn't unanimous, the mortgage market is jittery because we don't know if the Fed is taking a temporary break from raising rates or if rates will rise again in the fourth quarter.

Here's the relevant language in the Fed's latest statement: “…[I]nflation risks remain. The extent and timing of any additional firming that may be needed to address these risks will depend on the evolution of the outlook for both inflation and economic growth, as implied by incoming information.” This meands that the Fed will closely monitor economic reports for the next few months, and this will determine whether we see another rate hike in the near term.

WHAT DOES THIS MEAN FOR MORTGAGES?
We have been seeing a move towards lower mortgage rates, and I believe this will continue. In spite of today's news about a foiled terrorist plot, the bond market is pretty stable today. While a turn for the worse is certainly possible, I am optimistic for better rates in the next few weeks.

As always, feel free to call me with any questions about mortgages!

Peter

More Insight Into Credit Scoring

2006-08-04T10:42:00.000-05:00

There is a great column on realtytimes.com which offers insight into credit scores and highlights the difference between the score you can buy online and what you will see when I review your credit in our first meeting. I welcome the opportunity to review your credit report with you, call me today to set up a meeting! I can be reached at 414.453.7620.

"Not messing with a good thing is sound advice for consumers. Why? Because trying to improve your score could actually result in a lower score, not a higher one. Some steps to a higher number are counterintuitive, such as opening a new account and closing out an old one, a step that you could really mess up your score. "

Read the whole article HERE.

Lunch On Us This Friday!

2006-08-02T09:18:00.000-05:00

We will be hosting another Lunch On Us at KLM this Friday, August 4. Feel free to stop by our office for lunch and conversation from 11:30 to 1:30. I hope to see you here!

Peter

Testimonial

2006-07-26T11:17:00.000-05:00

I would like to offer my accolades to Peter Kazaks for excellent customer service throughout the entire process of my new home purchase.

As a first-time buyer, I knew nothing about the home closing routine. Peter demonstrated patience and understanding from beginning to end. He assured me that no question was a stupid one, and Peter was thorough in explaining processes and procedures. For many, legal and economic issues as it relates to the home-closing process can be confusing, and Peter conveyed this information in a manner that was easy to comprehend.

In sum, Peter was confident in his skills, he instilled confidence in me as a buyer, and he made the closing process seamless and comfortable. Peter clearly has a mastery of both the mortgage industry and people skills, and I would gladly recommend him to anyone seeking a mortgage lender.

Thank you,

Lindsey Kriete

The Economy In Brief: Strong Bond Market is Good for Mortgage Rates

2006-07-21T11:26:00.000-05:00

Bonds have enjoyed a nice recovery over the past two days and are modestly higher so far today. Friendly commentary from Fed Chairman Ben Bernanke has been the primary driver of the recent rally. Mr. Bernanke sparked the rally on Wednesday when he told Congress the economy seems to be moderating and inflation remains contained, and continued with similar comments in yesterday's testimony.
Further backing up Bernanke was yesterday afternoon’s weak Philly Fed Manufacturing Index, supplying further evidence the economy is indeed slowing down. In fact, as a result of the weakness shown in the latest economic data...combined with Big Ben's comments over the past few days...the Fed Funds Futures are now predicting only a 33% chance for another 25bp rate hike at the August 8 Fed meeting – down from about a 90% chance just a couple of days ago.
Bonds are also getting a boost on safe-haven buying due to the escalating fighting between Israel and Hezbollah. In recent months, traders haven't purchased Bonds on a flight to quality, but the continuing conflict between Israel and Hezbollah is bringing concerns that countries like Iran and Syria may get involved, which would further escalate the conflict and possibly interrupt oil supply. For the time being, oil prices are off their recent highs, which has helped to soften inflationary pressure and support Bonds at current levels.

Millionares In The Making

2006-07-11T14:37:00.000-05:00

Financial awareness is crucial to building an adequate nest egg. While most blog readers are probably thinking about not only a home but their financial future, I have posted in the past about the negative savings rate in the U.S. That being said, we can all use some inspiration from time to time to keep us on track and making responsible financial choices. One source of inspiration I keep an eye on is the "Millionares In The Making" feature on CNN.com. I suggest regularly checking the site linked HERE and also bookmarked on the right side of this blog so you can read what others have done to ensure their long term financial stability. Make no mistake about it--real estate is a consistent theme with the people featured as Millionaires In The Making!

5 Ways to Kill Your Credit

2006-07-10T15:27:00.000-05:00

I talk about responsible use of credit in my home buying seminars, I counsel clients about it in one on one meetings. A solid credit profile can save you hundreds of dollars every month when it comes to financing a home. Is it really worth saving $5 to open that new retail credit account? Probably not...

CNN.com has posted one of the better articles I've seen on "what not to do" when it comes to credit. I suggest you take a few minutes to read it by clicking here.

Action in the Market

2006-07-05T11:22:00.000-05:00

The bond market is not doing well today due to events of the last few days. From today's MMG:

A few big headlines are bringing the action back in a hurry after the long holiday weekend. First, North Korea test fired six missiles over the Independence Day Holiday, one of which was long-range and capable of reaching Hawaii or Alaska. Japan and other surrounding countries, as well as the US, are protesting the actions of North Korea, and are threatening economic sanctions against the rogue nation. Normally this type of geopolitical news would create a “flight to quality” and help Bond prices improve, as they are viewed as a safe haven, but another headline has forced Bond prices lower this morning.
A payroll survey released by the world’s largest paycheck processor, Automatic Data Processing, Inc. (ADP), showed an increase of 368,000 new jobs, the largest monthly increase in employment since the ADP Index was created five years ago. While their numbers are not always accurate, this sure provides some evidence that Friday’s Jobs Report may come in much hotter than expected. The current expectation has been for about 160,000 new jobs created during June, and remember that last month’s Job Report showed a fairly wimpy number of 75,000 new job creations during May. We had expected a stronger number last month, so seeing a hot number this month – along with a potential upward revision of last month’s number – wouldn’t come as a surprise, especially given the ADP findings this morning.

Lunch Is On Us!

2006-06-29T15:56:00.000-05:00

You are invited! Picking up right where we left off last fall, the first of our monthly summer "Lunch On Us" get togethers is coming up on Friday, July 7. Join us at our offices for fun, food, and friendship! We'll be grilling out, so bring your appetite!

Friday July 7, 2006
11:00 a.m. to 1:30 p.m.

KLM Mortgage Offices:
7119 West North Avenue
Wauwatosa, WI 53213
(click here to see a map)

This Week's Mortgage Market Guide

2006-06-25T10:15:00.000-05:00

From this weeks installment of the MMG:

With Bond prices moving lower for thirteen straight days, home loan rates have been climbing higher.

For last week, there wasn't much economic news of note, so what gives? It appears the market is weighing heavy in advance of next week's big plate of economic news, which includes the highly anticipated Fed meeting on Thursday, June 29th. Inflation still appears to be a concern, so it's a lock that the Fed will increase rates by another .25%, and they may go further yet. And when the Fed hikes the Fed Funds Rate, it impacts many other lending rates, such as for Home Equity lines, credit cards, car loans, business loans...they've all been moving higher over the past two years of hikes, and it looks like the hits will keep on coming. It may be time to consider restructuring your outstanding debt, so please call me for ideas and strategies that may make sense as rates continue to climb.

A New Business: Bayshore Realty

2006-06-23T11:39:00.000-05:00

Through my involvement in the Apartment Association of Southeastern Wisconsin I have gotten to know Nancy Haislmaier, Graig Goldman, and Maggie Haughton of Landlord Liquidators. Recently they left the realty firm they were affiliated with and have established a new company, Bayshore Realty. Congratulations to the team, I am sure the change will allow them to provide the same excellent service with even better value.

From the Bayshore Realty website:

"We are an experienced team of brokers and agents ready to help you achieve your real estate goals. Our services include both investment and residential real estate. In keeping with our commitment to you we offer variable commisions and an 'ala cart' menu of services. Our staff includes both buyer and seller specialists that are in tune with your needs."

Testimonial

2006-06-22T14:08:00.000-05:00

Dear Peter:
Thank you for your professionalism and for answering all our questions in a timely manner. The re-finance was a great experience. I have, and will continue to recommend you to my friends and family who need a mortgage.
Brian and Nicole Hudson

Success!

2006-06-14T14:58:00.000-05:00

The First Annual KLM Fore! Kids Golf Outing was a success! We had beautiful weather, and 80 golfers took to the links to benefit Children's Hospital of Wisconsin. Thanks to all who played and donated items to the silent aution and raffle. I look forward to doing it again next year!

Pictured above:
Joe Doyle, First Franklin
Me
Justin Dumke, Financial Resource Services, LLC
David Sengstock, Poulos, Sengstock, Budny & Ludwig

Peter

One Week Until Tee Time!

2006-06-01T11:43:00.000-05:00

The KLM Fore! Kids golf outing is a week from today! We still have space available, please contact me at peter@klmmortgagegroup.com or 414.453.7620 if you would like to join in the fun for a great cause.

Peter

Making an Insurance Claim?

2006-05-26T10:17:00.000-05:00

Insurance companies are working together to maintain an extensive database of information pertaining to your home.

"You probably know that it’s not a good idea to make too many claims on your homeowners insurance policy because your insurer could drop you."

Read all about it here.

A Personal Note...

2006-05-11T15:12:00.000-05:00

Success! After racing in a few sprint distance triathlons last year, I have been training for my first Olympic distance triathlon. Last weekend I traveled to central California to race in the Wildflower triathlon. The distances are 1.5 k-swim, 40 k-bike, 10 k-run. I beat my goal time of three hours on this very hilly course by just over two minutes. Training and racing in this event was very rewarding, and I plan on returning next year.

Do You Know Someone on Medicare?

2006-05-01T11:35:00.000-05:00

KEY DATE FOR MEDICARE - The deadline for the 43 million eligible American seniors to sign up for Medicare’s prescription drug coverage without penalty for calendar year 2006 is 2 weeks from today (5/15/06). Enrolling after that date for 2006 coverage will cost +1% more each month or an individual can wait until the next open enrollment period which begins on 11/15/06 for 2007 coverage. The 5/15/06 deadline is the end of an initial 6-month enrollment period that began on 11/15/05 (source: Medicare).

Who Is Buying A Home?

2006-04-30T18:09:00.000-05:00

"Last year, 21 percent of all U.S. homes were purchased by unmarried women, up from 10 percent in 1985, according to the National Association of Realtors."

Interesting article on the fact that single women make up an increasing percentage of all home buyers. I have seen this in my business and have had great fun helping single women buy their first home, divorced women buying by themselves for the first time. While the experience may seem frightening at first, my clients have told me that after they have made the decision to buy and moved forward, the whole process can be empowering.

Read the whole article here.

Golf and Economic Updates

2006-04-05T14:28:00.000-05:00

KLM is sponsoring a Charity Golf Outing for Children’s Hospital on June 8, 2006 at the Silver Spring Country Club. Join us for golf, lunch & dinner. Be one of our Captains or a Sponsor. The KIDS and KLM will thank you. Bob Reitman is attending!

Last week the Fed raised the Fed Funds Rate by another .25% as expected. Fed Chief Ben Bernanke did indicate there were still some inflationary concerns. The financial markets despise uncertainty and this caused home loan rates to increase by .125%.

This Friday’s Jobs Report will likely determine the course of directions for Bonds and Home Loan Rates. Good economic news tends to be good for stocks, but inflationary pressures threaten to continue to pull money away from Bonds, causing pricing to worsen and home loan rates to rise.

Testimonial

2006-03-28T16:43:00.000-06:00

Dear Peter:
Your professionalism and knowledge of the industry surpassed all of my expectations. It is clear that you truly care about your clients, and make certain that all of their needs are met in a timely, efficient manner. I will highly recommend your services to anyone seeking assistance in the home buying process.
Mya Newman

What is an Escrow Account?

2006-03-21T18:19:00.000-06:00

I recently met with one of my clients who is a first time home buyer. She has an accepted offer on a very nice house, and is excited to be moving in to a house she can call a home. We reviewed the Good Faith Estimate for her mortgage and had a lengthy discussion about what escrow is and why she would have an escrow account, so I thought it would be a useful post for this blog!

So what is it? An escrow account is a savings account for real estate taxes and homeowners insurance. Borrowers who have an escrow account associated with their mortgage pay a set amount each month in addition to the principle and interest on their mortgage, and this money is put into a savings—or escrow—account. The amount put into escrow each month is about 1/12 of the anticipated annual real estate taxes and homeowners insurance premium. For example, if a homeowner must pay $1200 in annual real estate taxes and $120 for homeowners insurance each year, the monthly escrow payment would be $130, or $120 towards taxes and $10 towards insurance. In December of each year, a check is mailed either to the borrower or directly to the municipality, and the real estate taxes are paid. On each anniversary of the purchase of the home, the lender will send a check to the insurance company, and insurance will be paid in full for the next twelve months. By having an escrow account, both the borrower and the lender know that the taxes and insurance will be paid, in full and on time!

Is escrow required? Sort of. Most lenders require escrow, though if you would rather save your own taxes, escrow can be waived for a fee, typically ¼% of the loan amount.

For more information on escrow or other mortgage questions, feel free to call or e-mail me at 414.807.7277 or pkazaks@hotmail.com

New Responsibilities

2006-03-21T11:15:00.000-06:00

As of yesterday, I am now a member of the board of the Apartment Association of Southeastern Wisconsin. I look forward to contributing to this great organization, which helps our area's landlords provide quality housing at reasonable prices.

If you are a landlord or are considering investing in residential real estate, I suggest you check out this organization. I have been a member for a year and a half, and have learned a great deal from the speakers at our monthly meetings, and from the connections I have make through the organization.

Check out the website here.

Funny

2006-03-13T13:36:00.000-06:00

There is no doubt that the various parties I interact with in the course of a purchase transaction each have a different view the house being bought/sold/appraised/mortgaged. Find an illustrated guide here.

(tongue planted firmly in cheek...)

Spruce Up Your Home for Under $25!

2006-03-12T21:32:00.000-06:00

With spring on the way, I spent part of the weekend doing some "spring cleaning." Feels good to have a fresh house as we look forward to enjoying warmer weather. Many homeowners would like to spruce up their home this time of year. Need some ideas to do so without breaking the bank? Check out this article!

Testimonial

2006-02-27T14:57:00.000-06:00

I work hard on behalf of all of my clients, and I just love receiving these!

Dear Peter,
I would be remiss if I didn’t take the time to write this letter as a demonstration of my appreciation for all your efforts. Having owned rental properties for the last 8 yrs I have met and dealt with many financial providers as it relates to home and rental loans. Your professionalism and responsiveness is impressive and I have not experienced such an informative process from beginning to end with any other financial provider. Simply put thank you Peter for your efforts that lead to a smooth and successful loan process.
-Troy H.

Mortgage Deduction is Safe

2006-02-20T12:00:00.000-06:00

Here's the headline from CNN.com:

Bush: We won't kill the mortgage deduction
President says he wouldn't support removing the mortgage deduction from income tax law.

Read the article here.

Real Estate Taxes are Due!

2006-01-31T09:44:00.000-06:00

If you haven't paid your real estate taxes yet, most municipalities require at least a partial payment by today, January 31! If you haven't done so already, make the trip down to city hall and write them a check or sign over your escrow check! The day I pay my taxes is one of mixed emotions--I'm handing over a significant amount of money, but I'm happy because it is tax deductible, and moreover, home ownership is key on the road to wealth!

Appreciation Tidbit

2006-01-30T10:21:00.000-06:00

DOUBLE-DIGIT INCREASE - The average sales price of an existing home in the USA has increased +34% over the last 3 years (2003-05), an increase of +10.1% per year (source: National Association of Realtors)

How Are Your ARMs?

2006-01-28T14:19:00.000-06:00

In the last five years, many home buyers took advantage of the low interest rates available to borrowers who opt for an Adjustable Rate Mortgage, or ARM. While the advantage of a lower interest rate is appealing, many home owners are now seeing the drawback of an ARM when they receive notice that the loan has reached the end of the initial period under which the intreest rate was locked in, and their interest rate --and payment-- are going up. I am now hearing from homeowners who need help dealing with the increased payment.

Be Proactive!

Long term mortgage rates are still very good--the low 6% range for qualified borrowers. If you have an ARM, now may be a good time to consider refinancing into a fixed rate mortgage. While I do not expect we will see fixed rate mortgages top 7% this year, I do expect that rates will head to the high 6% range by the end of the year.

Call me today at 414.453.7620 to learn more about your options!

So You Want To Be A Landlord...

2006-01-19T11:04:00.000-06:00

I met with a client yesterday who is considering purchasing his first rental property. He is retired, and has very little left to pay on the mortgage on his own home, and is beginning the process of researching whether or not investing in real estate is right for him, and if so, what type of property. We discussed mortgages for the property, and also what it takes to be a landlord. I suggested that he attend the next meeting of the Apartment Association of Southeastern Wisconsin, which I am a member of, as it is an organization which provides good information on how to stay on top of the best rental practices. I also suggested that he do some reading on what it takes to be a successful landlord, and talk to a realtor who specializes in rental property in this area.

As is discussed in this Motley Fool article, there are many aspects of landlording to consider. I have enjoyed and prospered from my rental properties, but it is not for everyone. Owning rentals is a business, and should be treated as such. If you are interested in investing in real estate, call me at 414.807.7277 to set up a time to discuss it over a cup of coffee.

This Week in the Economy (Friday the 13th Wrap Up!)

2006-01-13T10:24:00.000-06:00

The Treasury auction held yesterday showed that foreign demand for US bonds is still strong. This is good news, as a significant amount of foreing money is invested in US bonds, and this helps keep the lending industry healthy.

The last two big economic reports for the week were released this morning, and the bond market is relatively quiet. Stocks are back below the 11,000 marker, and appear to be tickling support around 10,950. If stocks fall decisively below this level, Bonds will benefit. But if stocks continue to run at the 11,000 level or higher, it could pull money away from Bonds and hurt pricing.

Below is a discussion of today's economic reports for those of you who are interested.

The Producer Price Index (PPI) which indicates inflation at the wholesale level jumped 0.9% in December, but when excluding volatile food and energy costs, the Core PPI rose a mild 0.1%. For all of 2005, the PPI grew by 5.4% - the largest calendar year increase since 1990…but was likely due to high energy costs experienced throughout the year. More importantly, the Core rate rose by just 1.7% in 2005. This indicates that overall inflation appears to be in control…good news for Bonds and home loan rates.

Retail Sales were slightly below consensus estimates at 0.7% in December. Economists were estimating an increase in sales of 1.0%, but sales for October and November were revised higher, so it was basically a wash. Year-over-year, Retail Sales for December were up 6.3% from December 2004 – a good sign of a strengthening economy.

Dow is Looking Strong

2006-01-10T10:48:00.000-06:00

Yesterday was the 20th time the Dow has ever broken 11,000, the last time being June 2001. The highest level the Dow has ever attained was 11,722 on January 14, 2000. The longest time the Dow has ever held its ground above 11K was August of 2000, when it held for 24 days. In October of 2002, the Dow hit a low of 7,286.

What does this mean for mortgages? While the Dow is down so far today (I write this at 10:56 a.m. CST), it is still above 10,940, a level which for months has been a "ceiling," pushing down whenever the dow approached it. Now that the Dow has broken through this ceiling, it may become a level of "support." If 10,940 does become a level of support, this will draw money away from bonds and into stocks. The end result will be less money available for mortgages, and in turn, higher interest rates.

I don't see any drastic moves coming in the near future, but this is definately a trend that I will be watching in order to make sure my clients are getting the best rates available.

Testimonial

2006-01-07T09:35:00.000-06:00

It's always great to hear from a client after we have closed on a home. Here is a testimonial from a recent client:

Peter has a passion for real estate and financing, and I could tell he truly enjoyed assisting my wife and I in financing the home we wanted. Peter took the care to thoroughly educate us on our financial options, and he was creative in structuring a financing plan that saved us the most money under our circumstances. We were very happy with the work of Peter and KLM Mortgage Group. – Michael B.

Milwaukee in the Wall Street Journal

2006-01-04T16:39:00.000-06:00

"Milwaukee, an industrial city known for making gritty icons such as Harley-Davidson motorcycles and Miller beer, as well as small engines and mining equipment, is working on a classic American comeback after decades-long shakeout of its manufacturing sector." Read the story here.

The Outlook for 2006

2006-01-03T14:57:00.000-06:00

Employment
In 2005, about 2 million new jobs were created, and unemployment hovered around 5%. Because the outlook for the economy continues to be strong, expect new job creation, and low unemployment to continue through 2006. As profits have been strong for American business in the past year, highly skilled employees have seen companies offering good money to attract and retain talent. Expect this to continue as well. At the same time, technology has created an environment which is ripe with opportunity for those who have the entrepreneurial spirit.

Easy Come, Easier Go?
While consumer spending bolsters the economy, it doesn’t help personal savings… As a nation, we are currently spending more than we earn. In 2006, expect that the continued rise in the cost of oil will further decrease the rate at which we save, as consumers continue their driving habits in spite of the increased expense. Remember that even if the potential for gas prices stabilizing in the high two dollar range sounds expensive, we are still paying quite a bit less than in most other countries.

Inflation
While inflation has been pretty much non-existent the last few years, it reappeared in 2005. Inflation pulled money out of the bond market in the latter half of the year, causing interest rates to rise moderately. The measured series of Fed rate hikes kept inflation in check, and expect more of the same in 2006.

Alan Greenspan Exits Stage Left
After 18 ½ years, Alan Greenspan’s last meeting as the Fed Chair will be January 31. The market is expecting one last ¼ point rise to the fed funds rate at this meeting, and when the new Chair Ben Bernanke takes over at the March meeting, he will likely show that he means business with another ¼ point hike. While these rate hikes do not impact fixed rate mortgages much, they do have a direct impact on ARM’s and Home Equity Lines of Credit (HELOC’s). I expect we will see consumers driven toward fixed rate second mortgages, decreasing the prevalence of HELOC’s.

What Housing Bubble?
2006 is the fifth year that the media has been talking about a housing bubble. While some areas may see prices cool, employment is strong and mortgage rates are still low. Appreciation may slow, but a widespread bubble is not in the cards, particularly here in the midwest where appreciation has been rapid, but not outrageous. Remember that a good realtor can provide you with lots of information on the current housing market in your area.

The Bottom Line: Mortgage Rates
Rates will rise in 2006, but not by much. Foreign demand for our bonds continues to be strong, and as our population ages, their assets will flow from stocks into bonds in order to preserve wealth. This continued flow of money into the bond market will prevent mortgage rates from going up too quickly. Expect 30 year fixed rates to spend most of the year in the mid six percent range.

The First Week of 2006!

2006-01-02T21:50:00.000-06:00

The last few weeks, Mortgage Bonds have been drifting sideways, meaning not much change has taken place during the holidays for home loan rates. This is typical during the holiday season, when trading is light and the economic calendar is not busy. Traders will be back to the pits in full force the first week of the New Year, and we have a busy fat economic calendar, punctuated by Friday’s Jobs Report, which can set the trend for home loan rates for days and weeks to come. If the report comes in showing blockbuster numbers and higher than expected job growth, home loan rates will worsen…where a weak number would help home loan rates to improve.

In The Last Week of 2005...

2006-01-02T21:46:00.000-06:00

The big financial event last week was the appearance of an “Inverted Yield Curve”, when the shorter term 2-Year Treasury Note Yield moved higher than the longer term 10-Year Treasury Note Yield. Why care? Only because historically, this has tended to be a recessionary signal, implying that investors do not trust the long term strength of the economy…so while it had the markets a bit rattled initially, a closer inspection shows little cause for concern.
Bottom line, things are different this time because the Fed moves have pushed the 2-Year Note Yield higher, while contained inflation and foreign demand for longer term bonds have helped reduce the 10-year Note Yield. The economy is and will continue to be strong and a recession does not appear to be in the cards for 2006.

Old Cell Phones

2005-12-27T17:50:00.000-06:00

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

Is Right Now a Good Time to Buy a Home?

2005-12-22T11:03:00.000-06:00

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.'"

Why Use a Mortgage Broker?

2005-12-19T18:04:00.000-06:00

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.

Another Rate Hike Coming?

2005-12-12T14:56:00.000-06:00

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!

Retail Credit Cards and Your Credit Score

2005-12-09T11:05:00.000-06:00

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!

Free Money for Shopping Online!

2005-12-08T10:56:00.000-06:00

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!

Do You Have A Plan?

2005-12-07T14:48:00.000-06:00

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!

"When Debt is OK"

2005-12-06T11:24:00.000-06:00

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

The Week Ahead

2005-12-05T10:50:00.000-06:00

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.

Check Out My Links!

2005-12-03T18:47:00.000-06:00

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!

This Week in the Economy

2005-12-02T15:11:00.000-06:00

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.

2005-12-02T14:46:00.000-06:00

Peter Kazaks, J.D.

The Beginning...

2005-11-22T15:04:00.000-06:00

Why a Blog?

As a mortgage broker, I study the mortgage market and in turn, the bond market. My clients and business contacts can benefit from the research I do, and a blog is a logical way to spread the information!

How Are You Qualified to Provide This Information?

My professional career began when I practiced law. I worked in house for a Fortune 500 company, addressing corporate compliance and ethics issues. My responsibilites included tracking legislation impacting publicly traded companies, and subsequently assessing needs and implementing practices and controls to ensure compliance.

While practicing law, I started a real estate business, and began investing in rental properties. My first purchase was a duplex in 2002, and I have since added properties at a measured pace.

After practicing corporate law for several years, I decided that it was time to follow my passion: Real estate and finance. I made a transition into the mortgage world, and haven't looked back, as I now spend my days helping my clients achieve their dreams. I am now a mortgage broker, and am proud to be part of KLM Mortgage Group Inc., based in Wauwatosa Wisconsin.

What Services Do You Provide?

As a mortgage broker, I work on behalf of my clients to find the best mortgage product available to them. My mortgage practice focuses on three areas: first time home buyers, divorce and mortgage planning, and investors.

First Time Home Buyers

I'm amazed when I meet with a client who is a repeat home buyer or a refinance customer. Why? Because frequently, they don't know what type of mortgage they have, and if it is not an A Paper product (meaning the best available at the time), why they didn't qualify for A Paper. When I meet with my first time home buyer clients, I get to know them. I want to help them define what success means to them. Is it owning a home free and clear in XX years? To have a low mortgage payment so they can aggressively invest in the stock market? To own a home now as they continue paying off credit card debt? I take time to educate a first time home buyer on how credit works, and how the mortgage process works. By taking the time to get to know first time clients, I have found that I am priviledged to have long relationships with clients, and we stay in touch over the years. It's not uncommon for a client to call me to ask for a reference for a contractor when their home needs work, or for recommendations for other finance professionals who can help them obtain their financial goals. I enjoy working with first time home buyers, as I love their enthusiasm and willingness to learn.

Divorce and Mortgage Planning

Along with my colleagues at KLM, I have worked to develop a process to help people who are going through a divorce. While children are the most important consideration for a divorcing couple, the homestead also very important. We work with each divorce client to do an honest assessment of their financial position, and discuss priorities in housing for after the divorce. By examining budgets and priorities, I have found that divorce clients can put a plan in place to maximize the value of their housing dollar. My background as an attorney allows me to work with the attorneys who represent my divorce clients in the divorce proceeding. By assessing mortgage options early in the divorce process, I work to lower the amount of stress involved in transitioning to a new life as a single person.

Investors

As a real estate investor, I have networked with many other investors. My goal with these clients is simple: I want to help them grow their rental business. By providing high quality service and closing purchases on time, I have helped investors grow their business, whether it be purchasing their first or tenth property. My investor clients grow to be friends, as we may find each other at the closing table together several times a year.

Stick Around!

Please watch this site, as it will evolve to become a one stop information center for anyone who is in the market for a mortgage, or is involved in a related industry. I welcome your comments and feedback, and look forward to you visiting my blog again soon!

Milwaukee Wisconsin Mortgage Minute with Peter Kazaks, J.D.

Important Changes to Mortgage Underwriting Are Around The Corner!

Still Time to Get $8,000 FREE!

First Time Homebuyer Tax Credit

I Love These!

Tax Credit for Homebuyers

Exciting News

Inside Story: False Illusions and What You Need to Know

Vote!

Fear vs. Courage

It's Tax Day!

Learning Never Ends

Party!

See Me Speak (again)!

See Me Speak!

Conforming Loan Limits Stay The Same

FHA

Fannie Mae Makes Some Changes!

Trick Or Treat Times

A Note On Lenders

Giveaways!

Prizes Giveaway Entry Form

Wisconsin Foreclosures

Organize Your Life!

Emergency Mortgage Market Update

What Is Going On?

Market Update

Market Instability

Have You Bought Firewood Recently?

KLM Fore! Kids is Coming Up!

It's Almost Time...

Don't Be A Statistic!

Credit Scoring in Layman's Terms

Do You Know What Is On Your Credit Report?

Mortgage Insurance Is Now Tax Deductible

Young Women Buying More Homes Than Young Men!

Avoid Paying Taxes!

Buying a House Is Easy!

Mortgage Knowledge is Power!

Vote Today!

"Feels Like the First Time"

Good News About Energy Prices!

Breaking News!

Join Us In Our Efforts

Are The Rate Tides Turning?

Testimonial

Happy Labor Day!

No Money Down?

Good News For Mortgage Rates

More Insight Into Credit Scoring

Lunch On Us This Friday!

Testimonial

The Economy In Brief: Strong Bond Market is Good for Mortgage Rates

Millionares In The Making

5 Ways to Kill Your Credit

Action in the Market

Lunch Is On Us!

This Week's Mortgage Market Guide

A New Business: Bayshore Realty

Testimonial

Success!

One Week Until Tee Time!

Making an Insurance Claim?

A Personal Note...

Do You Know Someone on Medicare?

Who Is Buying A Home?

Golf and Economic Updates

Testimonial

What is an Escrow Account?

New Responsibilities

Funny

Spruce Up Your Home for Under $25!

Testimonial

Mortgage Deduction is Safe

Real Estate Taxes are Due!

Appreciation Tidbit

How Are Your ARMs?

So You Want To Be A Landlord...

This Week in the Economy (Friday the 13th Wrap Up!)

Dow is Looking Strong