Vote Today!

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"

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

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!

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!

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

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?

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!

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

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!

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?

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

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!

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

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!

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

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

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

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

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

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.