Have You Bought Firewood Recently?

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!

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...

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!

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

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?

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

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!

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!

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!

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!

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!

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