Tuesday, January 31, 2006
Real Estate Taxes are Due!
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!
Monday, January 30, 2006
Appreciation Tidbit
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)
Saturday, January 28, 2006
How Are Your ARMs?
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!
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!
Thursday, January 19, 2006
So You Want To Be A Landlord...
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.
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.
Friday, January 13, 2006
This Week in the Economy (Friday the 13th Wrap Up!)
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.
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.
Tuesday, January 10, 2006
Dow is Looking Strong
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.
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.
Saturday, January 07, 2006
Testimonial
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.
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.
Wednesday, January 04, 2006
Milwaukee in the Wall Street Journal
"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.
Tuesday, January 03, 2006
The Outlook for 2006
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.
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.
Monday, January 02, 2006
The First Week of 2006!
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...
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.
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.
Tuesday, December 27, 2005
Old Cell Phones
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
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
Thursday, December 22, 2005
Is Right Now a Good Time to Buy a Home?
The article found here discusses research done by the Illinois Real Estate Lawyers Association of Arlington Heights. While most home shoppers in the midwest hibernate for the winter, consider the following quote from the president of the aforementioned association:
"[T]he holidays create an advantage for buyers because there is less likelihood of a bidding war with another buyer, and with the slowed market, real estate agents can 'roll out the red carpet to shoppers who are serious about shopping.'"
"[T]he holidays create an advantage for buyers because there is less likelihood of a bidding war with another buyer, and with the slowed market, real estate agents can 'roll out the red carpet to shoppers who are serious about shopping.'"
Monday, December 19, 2005
Why Use a Mortgage Broker?
I am frequently asked what the advantage a consumer has when working with a mortgage broker rather than a bank. While this question can lead to a lengthy discussion, I will summarize my response to three points:
1.) Personal service
2.) Wide assortment of products and rates
3.) Loan packages not available from banks
Personal Service
As e-commerce continues to grow mortgages have become a commodity in the eyes of some consumers. While rate and closing costs are important, so is the experience of closing on your home. As a mortgage broker, I have access to the best rates and products available (see below). Moreover, at KLM Mortgage Group, we work as a team and strive to provide the best possible experience to out customers. When I meet with a new client, I get to know them. I ask what their financial goals are, what the most important aspect of the transaction is for them, and how I can best help them move forward with their purchase or refinance. With every new client, I consider the first meeting the beginning of a long term relationship, and make it clear that I am going to be available to answer questions or help out any way I can whether it be tomorrow of in a few years.
Products and Rates
Because I do not work directly for any one lender, I have the ability to find the best rate available on the product my client needs. We have worked hard to develop relationships with national lenders. Depending on my clients’ credit scores and lending needs, I will be able to utilize one of a handful of lenders to accomplish their goals. For clients with perfect credit or a few blemishes, I have the ability to match my client with a lender which specializes in borrowers just like them. Thus, I can be a specialist in many types of loan products.
Loan Packages
Many savvy consumers ask me about PMI, or Private Mortgage Insurance. PMI is insurance which protects the lender in case a borrow defaults on a mortgage. The cost of PMI is the responsibility of the borrower, is not tax deductible, and does not protect the borrower! Because Fanny Mae and Freddie Mac require PMI on loans which exceed 80% of the value of the property, most banks will offer mortgages to consumers who have less than 20% down payment, but the consumer is stuck paying PMI for years and years. There is a better option! For people with good credit, a mortgage broker has the ability to use one or more lender, and use two loans to obtain the best of both worlds—less than 20% down, and no PMI. For example, a first mortgage for 80% of the purchase price may be supplemented by a second mortgage of 10% of the purchase price. The borrower brings in 10% down payment, and has no PMI! When the interest on the second mortgage is tax deductible and the overall monthly payment is less than a single 90% loan with PMI, the borrower wins!
My goal is to make sure all of my clients gets the best loan available, and understand the loan product I can provide. A smooth transaction with all expectations met is my goal with each and every client! Call today for your free mortgage consultation, 414.453.7620.
1.) Personal service
2.) Wide assortment of products and rates
3.) Loan packages not available from banks
Personal Service
As e-commerce continues to grow mortgages have become a commodity in the eyes of some consumers. While rate and closing costs are important, so is the experience of closing on your home. As a mortgage broker, I have access to the best rates and products available (see below). Moreover, at KLM Mortgage Group, we work as a team and strive to provide the best possible experience to out customers. When I meet with a new client, I get to know them. I ask what their financial goals are, what the most important aspect of the transaction is for them, and how I can best help them move forward with their purchase or refinance. With every new client, I consider the first meeting the beginning of a long term relationship, and make it clear that I am going to be available to answer questions or help out any way I can whether it be tomorrow of in a few years.
Products and Rates
Because I do not work directly for any one lender, I have the ability to find the best rate available on the product my client needs. We have worked hard to develop relationships with national lenders. Depending on my clients’ credit scores and lending needs, I will be able to utilize one of a handful of lenders to accomplish their goals. For clients with perfect credit or a few blemishes, I have the ability to match my client with a lender which specializes in borrowers just like them. Thus, I can be a specialist in many types of loan products.
Loan Packages
Many savvy consumers ask me about PMI, or Private Mortgage Insurance. PMI is insurance which protects the lender in case a borrow defaults on a mortgage. The cost of PMI is the responsibility of the borrower, is not tax deductible, and does not protect the borrower! Because Fanny Mae and Freddie Mac require PMI on loans which exceed 80% of the value of the property, most banks will offer mortgages to consumers who have less than 20% down payment, but the consumer is stuck paying PMI for years and years. There is a better option! For people with good credit, a mortgage broker has the ability to use one or more lender, and use two loans to obtain the best of both worlds—less than 20% down, and no PMI. For example, a first mortgage for 80% of the purchase price may be supplemented by a second mortgage of 10% of the purchase price. The borrower brings in 10% down payment, and has no PMI! When the interest on the second mortgage is tax deductible and the overall monthly payment is less than a single 90% loan with PMI, the borrower wins!
My goal is to make sure all of my clients gets the best loan available, and understand the loan product I can provide. A smooth transaction with all expectations met is my goal with each and every client! Call today for your free mortgage consultation, 414.453.7620.
Monday, December 12, 2005
Another Rate Hike Coming?
The Fed’s last scheduled meeting of 2005 and the next-to-last meeting in the 18 ½ year tenure of Fed Chairman Alan Greenspan takes place tomorrow ( 12/13/05 ). Continuing the trend of increases in the Fed Funds Rate, another .25% bump is expected.
What does this mean to you? The Fed Funds Rate is the rate at which banks lend each other money. Accordingly, there is a direct correlation between the pricing of comsumer loans and the fed funds rate. If you have a Home Equity Line of Credit (HELOC), it is linked to the Prime Rate. When the Fed Funds Rate changes, the Prime Rate will follow, and the interest rate on your HELOC will change as well.
If you are seeing higher rates on your HELOC than you are comfortable with, consider one of two options:
1. Refinance your first mortgage and HELOC into a new first mortgage to lock in and lower the interest rate on the money you owe for your home; or
2. Refinance your HELOC into a fixed rate second mortgage.
Option two is cost effective and does not require the same amount of documentation as refinancing a first mortgage. However, given the increase in home values over the last five years, many home owners find that they owe less than 80% of the value of their home, and qualify for a single fixed rate mortgage which with no private mortgage insurance. With mortgage rates on the rise, now is a good time to consider refinancing.
I am available for a no-obligation credit and mortgage review. Call me today at 414.453.7620 or e-mail peter @ klmmortgagegroup.com to make an appointment!
What does this mean to you? The Fed Funds Rate is the rate at which banks lend each other money. Accordingly, there is a direct correlation between the pricing of comsumer loans and the fed funds rate. If you have a Home Equity Line of Credit (HELOC), it is linked to the Prime Rate. When the Fed Funds Rate changes, the Prime Rate will follow, and the interest rate on your HELOC will change as well.
If you are seeing higher rates on your HELOC than you are comfortable with, consider one of two options:
1. Refinance your first mortgage and HELOC into a new first mortgage to lock in and lower the interest rate on the money you owe for your home; or
2. Refinance your HELOC into a fixed rate second mortgage.
Option two is cost effective and does not require the same amount of documentation as refinancing a first mortgage. However, given the increase in home values over the last five years, many home owners find that they owe less than 80% of the value of their home, and qualify for a single fixed rate mortgage which with no private mortgage insurance. With mortgage rates on the rise, now is a good time to consider refinancing.
I am available for a no-obligation credit and mortgage review. Call me today at 414.453.7620 or e-mail peter @ klmmortgagegroup.com to make an appointment!
Friday, December 09, 2005
Retail Credit Cards and Your Credit Score
If you are shopping in the brick and mortar world this season, you are probably being accosted by store employees urging you to sign up for a credit card through the store you are in. Sure, it sounds attractive to get the 5% discount on everything you are buying today, but is it really a good deal?
Here’s where a little knowledge about how credit works can benefit you in the long run. The first thing I do in an initial meeting with a client is go through their credit report line by line. I explain how each account on the report impacts the overall credit score, and we discuss long term strategy to maintain or improve credit ratings. A credit card is considered “revolving credit,” meaning you always have access to funds, and you can charge up a balance and then pay it off, and the cycle repeats itself or “revolves.” There are several factors you should consider when you open a retail credit account.
1.) Credit Inquiries: Every time a potential lender checks your credit, it has an impact on your score. Applying for a new credit card may impact your score by a few points.
2.) Time Since Last Account was Opened: Opening new credit may lower your credit score. The longer your accounts have been open, the better.
3.) Proportion of Balance to Credit Limit: Retail credit cards typically have a low credit limit. To optimize your scores, keep the balance on your revolving accounts below 1/3 of the available credit.
When you apply for a mortgage, your credit score is a huge factor in determining what loan products you qualify for. While you may save $10 today by opening that retail credit card, is it worth jeopardizing your ability to get the best rates on a mortgage in the coming months?
Something to think about! Feel free to add a comment to this entry with your questions or thoughts!
Here’s where a little knowledge about how credit works can benefit you in the long run. The first thing I do in an initial meeting with a client is go through their credit report line by line. I explain how each account on the report impacts the overall credit score, and we discuss long term strategy to maintain or improve credit ratings. A credit card is considered “revolving credit,” meaning you always have access to funds, and you can charge up a balance and then pay it off, and the cycle repeats itself or “revolves.” There are several factors you should consider when you open a retail credit account.
1.) Credit Inquiries: Every time a potential lender checks your credit, it has an impact on your score. Applying for a new credit card may impact your score by a few points.
2.) Time Since Last Account was Opened: Opening new credit may lower your credit score. The longer your accounts have been open, the better.
3.) Proportion of Balance to Credit Limit: Retail credit cards typically have a low credit limit. To optimize your scores, keep the balance on your revolving accounts below 1/3 of the available credit.
When you apply for a mortgage, your credit score is a huge factor in determining what loan products you qualify for. While you may save $10 today by opening that retail credit card, is it worth jeopardizing your ability to get the best rates on a mortgage in the coming months?
Something to think about! Feel free to add a comment to this entry with your questions or thoughts!
Thursday, December 08, 2005
Free Money for Shopping Online!
Are you shopping online this holiday season? Do you have a Discover card? If so, don't miss out on the 5% cash back Discover is offering on all online purcheses through December 31. Sign up here!
Wednesday, December 07, 2005
Do You Have A Plan?
It is important to have a financial game plan. You can bet that the names we all associate with big money--Warren Buffet, Bill Gates, Donald Trump--all grew their fortunes by developing a plan and sticking to it. While some of my clients have had a financial plan in place for years, others are just getting started in their "adult" financial lives.
While not everyone has enough assets to warrant hiring a financial advisor, this does not mean that a financial check up shouldn't be performed on a regular basis. I have a confession to make. When I entered the working world, I saved less than I should have. At the time, I was focused on the fact that I had student loans to repay, there was fun to be had, and the reality of earning and spending an income hadn't really sunk in yet. In retrospect, adding a few hundred or even thousand pre-tax dollars to my savings would not have crimped my lifestyle too much, yet my bottom line today would be even better.
Give yourself a self check up today. Do you have an emergency fund? Do you know what percentage of your income you are saving? What are your goals? At least spend some time thinking about your finances, and if you really want to be at the head of the class, put it on paper. Still not convinced that you should review your finances today? Give yourself a reality check here.
An article on JS Online today talks about kids learning to save early. Yes, even elementary school kids can benefit from thinking about how they will pay for college. If these kids are thinking about their financial future, adults should be too!
While not everyone has enough assets to warrant hiring a financial advisor, this does not mean that a financial check up shouldn't be performed on a regular basis. I have a confession to make. When I entered the working world, I saved less than I should have. At the time, I was focused on the fact that I had student loans to repay, there was fun to be had, and the reality of earning and spending an income hadn't really sunk in yet. In retrospect, adding a few hundred or even thousand pre-tax dollars to my savings would not have crimped my lifestyle too much, yet my bottom line today would be even better.
Give yourself a self check up today. Do you have an emergency fund? Do you know what percentage of your income you are saving? What are your goals? At least spend some time thinking about your finances, and if you really want to be at the head of the class, put it on paper. Still not convinced that you should review your finances today? Give yourself a reality check here.
An article on JS Online today talks about kids learning to save early. Yes, even elementary school kids can benefit from thinking about how they will pay for college. If these kids are thinking about their financial future, adults should be too!
Tuesday, December 06, 2005
"When Debt is OK"
I check the Today's Headlines page on fool.com every day, as it has digest articles on interesting personal finance topics. There is a no frills article about good and bad debt on Motley Fool's website today. Check out the article here: fool.com
One service I provide my clients is a Debt Review. We sit down and review all accounts reported on the credit report, and discuss which debts need to be addressed first in order to attain long term financial success. Call me today if you would like to schedule a Debt Review! The office number here at KLM Mortgage is 414.453.7620.
Peter
One service I provide my clients is a Debt Review. We sit down and review all accounts reported on the credit report, and discuss which debts need to be addressed first in order to attain long term financial success. Call me today if you would like to schedule a Debt Review! The office number here at KLM Mortgage is 414.453.7620.
Peter
Monday, December 05, 2005
The Week Ahead
No major economic news is on the docket for the week of 12/5/05. Mortgages rates are up about .125 over last Monday, continuing the trend of the last few weeks. Given the lack of any noteworthy economic reports this week, I expect that rates will either stay at their current level or continue to slowly rise this week.
Hope you are finding great bargains as you shop for your loved ones this holiday season. A recent Salary.com article indicates that the typical American is spending 2.4% of their income on the holidays. That's significant, make sure you are getting the best bang for your buck by doing online research, and planning your gift giving ahead to avoid impulse buying.
Hope you are finding great bargains as you shop for your loved ones this holiday season. A recent Salary.com article indicates that the typical American is spending 2.4% of their income on the holidays. That's significant, make sure you are getting the best bang for your buck by doing online research, and planning your gift giving ahead to avoid impulse buying.
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