Annnouncement...

Since I am now doing a weekly web-based radio Podcast at www.620wtmj.com I would like for those of you that regularily come to my blog to start going to www.kevin620wtmjblog.com. I am now able to give you more powerful information by combining the blog and podcast.

Please update your favorites to have www.kevin620wtmjblog.com show up. I have a new post every Thursday afternoon by 1pm. Thank you for all of your support. I look forward to your comments each week.

A Different Approach to Debt Management...

I hope all of you have had a wonderful Labor Day weekend. It was a much needed break for myself, as my wife and I got prepared for the kids to go back to school tomorrow. It was also a great time for us to put the final touches on all of our outdoor improvements we did this summer. Plus, we had to change the broken sink in the kids bathroom so there wouldn't be chaos on the first day of school. By the way, don't forget to go to www.620wtmj.com this Thursday afternoon and download my first edition of "The Mortgage Minute with Kevin Kowalke." The Podcast button is in the upper left-hand corner of the homepage. If you need help call us at the office and we will walk you through it, 414-453-7620. Anyway...

I know we talk about debt management quite often. How do we cut expenses? How do get better deals on groceries or cable or whatever? How do we keep up with rising gas prices? And the list goes on. What if we took the time to think of paying for these things from a different angle?

Let's take a look at two different examples. Let's say you are an accountant. You spent countless hours in a classroom, at the library or your favorite watering hole(let's be honest with ourselves) learning about debits and credits, how to minimize taxable income and on and on. You have become the best accountant to walk the streets of Milwaukee but nobody knows that.

So, you join an accounting firm because it has a great name and it gave you a good starting salary. Now for you to make more money you can either, A) be a good employee, do good work for the clients that are handed to you and get the standard 3% raise each year. Or, B) you could hit the streets finding new people and businesses that need your services and move up the ranks in the firm with lightning quickness. Your efforts would be rewarded with a significantly higher salary or bonuses resulting in a 10-30% increase in your yearly salary. Which one sounds better? Obvious choice right?

So, how do you do it? Of all the classes you took(and actually went to) in college did your teachers ever teach you how to get business? Did you learn anything about the "Real World" marketing? Probably not. Let's look at another example before we get to the possible answer.

Let's say that you are a server at a restaurant for some extra income. This is quite common. Well, you work for a great restaurant that is always busy, but you can't figure out how to make more money in tips. Or, you see another server just rakin' in the dough and wonder how is he/she doing that? Same situation as above, I am sure the restauranteur didn't put you on an intense three week sales training program to show the proper way to make more money on your tip income. Heck, he is probably too worried about getting the food on the tables so the cash register can ring.

So what does this have to do with a different approach to debt management? Well, what if you were able to figure out a way to make more money so you had more money to pay the bills and actually keep some of it in the bank? What if I were able to help show you the way to making more money at whatever job you do? I may have a potential solution.

I have become very effective at helping individuals and business owners find ways to improve at how they "market" themselves, their business or to their customers in turn helping them make more money. If you make more money and are disciplined at not spending it as fast as you get it, you could actually relieve some of the strain of your everyday budget and savings concern. I think the fastest way to have a better financial life is to figure out how to be better at what you do. Learning how to market yourself and brand yourself will help you move up the ladder of financial success faster than one rung at a time. I say you should jump. So what am I getting at?

I have decided it is time for me to help those who want to live a better life. Everybody's definition of that is different. I know what mine is. For me to explain this on my blog would take too long and take up too much space. I have already gone on too long. If you are interested in learning more email me at kevinkowalke@aol.com and tell me your story. I am having a workshop on September 26th that is going to be amazing. Ask me about those details as well.

You will be hearing more about this as time goes on. But, if you want a head start email me today for all of the details. Until next time...

Major Announcement...

I am excited to tell you starting the first Thursday after Labor Day, September 7th, I will be exclusively featured on the Number One news talk radio station 620 WTMJ.

Every Thursday I will be featured on the 620 WTMJ website in its Podcast section doing the "Mortgage Minute with Kevin Kowalke." For those of you that don't know what a Podcast is (just like I didn't) you can go to the website link www.620wtmj.com and in the upper left hand corner you will see the Podcasts button.

This is going to be a lot of fun and will be a great way for me to educate those who do not get the correct information when it comes to mortgage financing.

Having said that, I need your help. I want this to be a huge success. A bigger success than anyone at 620 WTMJ would have ever expected. Would all of you please go to the 620 WTMJ website every Thursday and download my weekly segment? If it's not asking too much, could you also send out an email to all of your friends telling them to download these information packed segments? I will only be able to make this successful if I can count on you.

I know most of you will help make this a Tremendous Success. In advance, I Thank You!

Don't forgot to read my regular weekly post below talking about Adjustable Rate Mortgages. Until next time...

A Call to ARMs...

There are almost $2 Trillion worth of adjustable rate mortgages that are coming due now and in the near future. This could have a major impact on a household's monthly budget. In some cases it will put a household over the edge. It's no fun living for your home. The last you want is to have ever extra dollar you get going to keep up with the bills. So, what should you do?

First, gather up your mortgage paperwork and all of your other bills(car loans, student loans, credit cards,etc.). If you have a written out budget, have that handy. This is the information you need to make sure we would put together a financially sound new plan.

Second, call to set up an appointment with me at 414-453-7620. If you fax the information to me ahead of time, at 414-453-9035, it will give me a head start in having a plan put together. You can also email the information to kevinkowalke@aol.com.

Third, have an idea of what the value of your home is. This will make it easier to figure out what options will be available.

Finally, when you come in for your appointment, we will discuss what strategy we will take to make sure we have you in the best financial position possible. It's that easy.

I encourage you to send this segment to anyone you know who is in a situation where their mortgage is adjusting. Everyone needs to have a plan for the here and now but also for the near future.

Don't hesitate to call, fax or email your questions. Remember, information is power. Until next time...

Keep Your Home Out of Trouble...

I was reading the Sunday paper and couldn't believe the growing number of foreclosures that are taking place in Wisconsin. As reported in the Milwaukee Journal/Sentinel, Sunday August 20th, 2006, foreclosures are up in Wisconsin 62% in June and 36% in July compared to 2005 data. Why is this happening?

First of all, many people have been steered in the wrong direction and put into Interest Only Adjustable Rate Mortgages(ARMs), Negative Amortization Mortgages and Standard Adjustable Rate Mortgages(ARMs) without having a bonafide plan on how to control the mortgage in the future. That is why it is so important to work with a Mortgage Professional you trust that is credible.

Foreclosures have gone through the roof because most people were not prepared for their payments to go up. Imagine how it would effect you if your payments went up $100, $200 or $300 per month. I have a feeling I know what the answer would be.

My question is "Why do people let it get so bad?" I don't understand why someone who is in financial difficulties wouldn't ask for help. Maybe they are embarrassed, maybe they don't know who to turn to, or maybe they think they can't be helped??? Scary thoughts. Heck, worst case scenario sell the house!

That is why I stress to all of my clients to call me for ANY financial situation. Being late on your mortgage or other bills will destroy your credit and ability to get low interest financing. Worse yet, ignoring the problem will not make it go away. It will only make it worse.

If you know anyone in this situation please tell them to call their creditors and explain they need some help to get back on track. Work out a payment program to get caught up. Refinance the debt. Just do something. If they don't know what to do have them call me. I have been helping people with financial difficulties for quite some time now. Homeowners and renters. It is my way of giving back. For those of you who know me know these people would be in good hands.

Be the Good Samaritan and forward this article on to someone who needs it. Or better yet, tell them to call me and mention your name. They will thank you. Until next time... -Kevin

Exchange of Knowledge...

Good Monday to everyone! I just got back from a trip to Houston, TX with three of my good buddies, Gary, Scott and Jamie. We take a trip every year to see a new baseball stadium. The great thing about trips is I get the chance to get caught up on my reading. I thrive on gaining new knowledge and ideas from others. I then take those ideas and apply them in my business and personal life. I just stumbled in to a new idea.

One of the things I noticed this trip was how airport "convenience" stores are offering 50% back on any book you bring them after you have read it. Not a bad way to get some cash back on a book you finished or didn't like. It is a way to cut your losses if the book was a real stinker. Well, that is not a realistic option for those who do not travel often, but I found an interesting article about an online book exchange. I plan on using this to my advantage.

I read a ton of books, not all of which I like. So, I will use this as a way to save money on my monthly budget for reading material. Below is the article I read...

It's Good to Know: Online Book Exchanges
By Suzanne Richardson
My friend LP frequently buys a paperback novel to read on the airplane or at the beach, then trashes it when he's done. To him, these books are travel candy, and not worth keeping. But there are better ways to "dispose of" your used paperbacks.
For one thing, you can donate them - to your local library, thrift store, or nursing home, for example. You can also take advantage of online book exchanges.
Paper Back Swap (paperbackswap.com) is a free online service that allows you to exchange your paperback books for someone else's. Too get started, you list nine of the books you want to trade on the site. You get three "credits," good for one book each, just for becoming a member. Once registered, you can browse a list of the books other members are putting up for adoption. Pick one, and its owner will mail it to you.
You get more credits when you mail your books to other members. When another member "orders" one of your books, you print off a book wrapper (sent to you via e-mail), add a few stamps to your package, and send it on its way.
Frugal Reader (frugalreader.com), a similar service, gives you two credits for nine initial listings. Services like these provide you with an ongoing supply of stuff to read ... just for the price of postage.

This post is a tad bit different from what I usually write and thought it would be interesting. If any of you take advantage of this service be sure to share your thoughts. I will let you know mine as well. Until next time...

Finally!!! The Fed Pauses on the Rate Hikes...

Ok, Ok. I did it again. But this time it was on purpose. Today was the big day to see if the Fed would raise the interest rate again. Read on to see what happened...

Here is the Reader's Digest version of what happened today.

Bernanke decided to hold off on another .25% rate hike because he feels confident that inflation is contained for the time being. The markets took a big sigh of relief and help propel the bond market in a favorable direction, which could mean better long-term interest rates in the coming months.

The writing is on the wall that the Fed will actually start to decrease rates at the beginning of 2007 which is good for those who have Home Equity Lines of Credit and Adjustable Rate Mortgages. I am predicting that we will see a refinance opportunity late 2007 or the beginning of 2008.

Why do I think this will happen? Well, there are already signs that the economy is slowing down and companies are trying to squeeze as much productivity out of its workforce as possible to avoid having to add additional employee expense. If business slows, investors tend to get a tad bit jumpy and pull their money out of the stock market and invest in the safe-haven of bonds. This is a double edge sword. It is good for those of us who will be able to take advantage of the rate decreases and save money on our monthly budgets, but bad for our investments and 401k. We will have to wait and see.

As always, you don't have to worry about staying on top of this. If there is a chance to refinance you will be hearing from me. Until next week...

What Will the Fed Do on August 8th???

I know, I know, it is Tuesday. One day late from what I promised but I have a good excuse. I just got back into town late last night from visiting my grandfather in Iowa. It was great to see him but glad I am back. If you thought the temperature was hot here, is was about 5-7 degrees warmer everyday there. Thank goodness for air conditioning. Enough rambling, let's get on with the important stuff.

The Fed Funds Futures are now pricing a 41% chance of another Fed Funds Rate hike, up from 33% yesterday. And the deciding piece of economic data appears to be this Friday’s Employment Report with its new jobs and hourly earnings numbers. While economists are predicting the formation of 140,000 new jobs in July, job growth over the past three months has been averaging a rusty 108,000 jobs per month. If the new jobs number comes in at or below consensus estimates, the probability of another hike would be pretty slim. However, if the jobs number comes in much hotter than expectations, the Fed may just decide to go with one more toot on the trombone on August 8th.

Keep an eye on what happens for all of you with a Home Equity Line of Credit and credit cards. If the Fed moves the rate it will hit your monthly statements. Don't hesitate to call me to put a plan together to improve your debt situation. Until next Monday...

New Post...Just Like I said...

Welcome all! Here is the first post as I have promised for July 24th.

I am back with another warning. For most of you this will not a surprise which is why you have done business with me in the past or are currently working with me. The "big boy" internet companies are, surprise...surprise, not telling you the truth. Can you imagine? I am not surprised.

I have had many people who have called me and told their nightmare stories about how the internet mortgage company didn't come through on its promises of rates and costs. That is why I always tell people to work with someone you have been referred to and can trust.

Here is an excerpt from my Mortgage Market Guide Weekly that exposes BankRate.com. Read on.

Just like King Kong clutching the top of the Empire State Building…Bankrate, the "800-pound Gorilla" of online home loan rates is falling under fire. The Bankrate website draws millions of visitors, as it promises to give a listing of companies and their rate and cost offerings for mortgage loans, and even passes that information on to most of America's largest newspapers as fact. It proclaims itself to be a tool for the consumer, just delivering information and advice…but as many reputable mortgage lenders have known all along, it turns out that consumers are finding the reality of Bankrate to be a little different.

A lawsuit is in the works against Bankrate, after hundreds of consumers complained about lenders who failed to deliver the rates and terms they promised on the website. In fact, one lender actually told a Bankrate employee that a consumer would need a "direct pipeline to God" in order to qualify for the rates and terms they advertise on the site. Why would a lender post rates and terms they are unwilling or unable to honor? To lure in consumers who truly want to believe that they are getting an interest rate or cost package that is significantly lower than all the competition. And by the time the consumer finds out they are not getting the package they were promised, they likely have wasted enough valuable time that they feel somewhat stuck to use whatever terms the lender hauls out.

Of course there are real reasons that the terms of a loan package can change mid-stream, but when working with a reputable lender - it would generally only be caused by a change from what was submitted on the loan application, such as a change in credit, income, employment, debts or assets.

So are there any reputable lenders on Bankrate? Yes, of course. And some of those lenders were the ones who prompted the lawsuit in the first place. As they were posting real interest rates and terms they could actually honor, they could see that consumers would instead be contacting the less-reputable lenders who were posting completely unrealistic rate and cost offers. And the consumer might not find out the difference until it was too late. Mortgage lenders get their money from essentially the same places - so anytime there is a very large difference between quotes on identical programs, it pays to ask some questions.

Bottom line - the internet at large can be a great place to gain basic trends and information about a home loan, but the Bankrate lawsuit illustrates the need to work with a Trusted Advisor. A home loan is generally the largest financial transaction of your entire life - working with a real professional who can advise you on correct strategies and programs for your needs is a must. And like your mom or dad always used to say - you get what you pay for, and solid advice from a real professional may cost more than a bargain basement operation.

Most importantly, remember that the absolute lowest rate and terms on the WRONG financial strategy or loan program for your life will prove to be far more costly than a competitive rate package on the RIGHT strategy, which correctly fits your financial goals and needs. Please call or email me for more information, and remember I am here as your Trusted Advisor, even if you do not have a mortgage need at this time.

Don't forget to tell your friends, family, co-workers and neighbors about this. Pass my blog address along to them and tell them how much you trust working with me. I would hate to have someone you know have a nightmare story. Until next Monday...

Don't get caught by the "phisers"

In case you did not receive my Mortgage Market Guide Weekly in your email box make sure you read about the latest scam. This stuff just won't stop.

As seen in the Mortgage Market Guide Weekly-For the week of May 01, 2006 Vol. 4, Issue 18

THEY'RE BAAA-AAACK….and the "phish" smells worse than ever. Internet "phishing" scammers are at it again, and this time more people than ever are getting lured in. The email looks like an official update from the IRS, the senders email address looks official, the IRS logo is on the email…and the subject line would lure in any hardworking taxpayer with its tasty bait that smells of a tax refund from Uncle Sam. But watch out…even though it looks legitimate; don't let these internet thieves catch you with their hook. You could soon find yourself tangled up and struggling to rid yourself of a nasty case of identity theft. Here is the scoop:
A bogus email shows up in your inbox from tax-refunds@irs.gov and has a subject line that reads "Refund Notice", appearing to be from the IRS. If you click on the email to view the contents, it will state that you are entitled to a tax refund for a specific amount of money, usually $63.80 or $163.80 for some reason. However, to obtain the refund you must complete a tax refund form by clicking on a link contained in the email.
Do not click on the link…the IRS does not communicate with taxpayers via email, certainly never asks for personal identifying or financial information via email, and does not require online forms to be completed to receive a refund.
This scam has been working, since everyone "does business" with the IRS, whereas some of the other common phishing scams that copy traditional financial institutions information (like Bank of America), may not even be a company that is used by the recipient. Also, since the tax system is so confusing, it's easy for someone to believe that there may be some extra refund money laying on the table at the IRS. But if you do click on the link or provide any information, these internet thieves are hoping they can capture your personal information and use it to run up charges on credit cards, apply for new loans, or even file fraudulent tax returns. If you receive an email of this type, here's what you should do to protect yourself:
Delete any unsolicited emails that have "IRS" in the email address.
Find out if the IRS is trying to contact you regarding a refund by calling 1-800-829-1040.
If you need to visit the IRS site, go there directly by typing www.irs.gov into your web browser, never via a link within an email.
If you accidentally open a bogus email, do not open attachments or click on links. They may contain malicious code that could infect your computer.
Phishing is becoming more and more popular and identity thieves are becoming more sophisticated at using technology to create exact replicas of websites. With identity theft cases on the rise, it is important to use caution when opening emails that are unsolicited or unfamiliar, especially from any type of financial institution, including the good old IRS offering a "refund". It's like the old saying goes…if it seems too good to be true, it probably is.

If you hear of any scams, email me and I will make note of them. Have a great week. Until next time...

Kevin

Latest Credit Alert!!! & Gift Card Giveaway!

Well, I am back to getting my postings done on a regular basis. Between missing some time to being sick and have pre-committed business conferences I fell behind. But, I am back. Here's the latest...

Kevin Kowalke's CREDIT ALERT! This one is indeed true. It's listed on Scambusters.org. Check it out here: http://www.snopes.com/crime/fraud/juryduty.asp

Subject: Beware - Jury Duty Scam

Most of us take those summons for jury duty seriously, but enough people skip out on their civic duty, that a new and ominous kind of scam has surfaced. Fall for it and your identity could be stolen, reports CBS.
In this con, someone calls pretending to be a court official who threateningly says a warrant has been issued for your arrest because you didn't show up for jury duty. The caller claims to be a jury coordinator.
If you protest that you never received a summons for jury duty, the scammer asks you for your Social Security number and date of birth so he or she can verify the information and cancel the arrest warrant. Sometimes they even ! ask for credit card numbers. Give out any of this information and bingo! Your identity just got stolen.
The scam has been reported so far in 11 states, including Oklahoma, Illinois, and Colorado.
This (scam) is particularly insidious because they use intimidation over the phone to try and bully people into giving information by pretending they're with the court system.
The FBI and the federal court system have issued nationwide alerts on their websites, warning consumers about the fraud.

I hope this doesn't happen to any of you. Please have everyone you know read this. Your personal information is too valuable. Don't fall victim. Don't hesitate to respond with any comments/questions/concerns.

As mentioned before I am doing a blog only giveaway. Here it is...

$25 Gas Card.

Let's face it, gas is going up again. So I thought I would help the cause. To enter to win all you have to do is email me at kevinkowalke@aol.com and enter "Blog Gas Card" in the subject line. In the body please put your name, phone number and address. Good luck to all of those that enter. I will keep this contest open until March 29th. I look forward to hearing from you. Until next time...

Wisconsin in the Top 25%

We have been talking quite a bit about credit and how important it is. Well, according to the Journal/Sentinel Business Section (Feb. 5th, 2006 edition) Wisconsin ranks 11th in the nation with an average credit score of 697. Congratulations Wisconsinites! The average credit score nationally is 678. This study was done by one of the major credit reporting agencies, Experian.

In celebration, I will come up with a giveaway on this blog when I put up my next post. What could it be. Check back to see. Until next time...

Congratulations!!!

Congratulations to Jen Gores-Todd and Tim Dedering for being the winners of the Bucks tickets last week. Keep tuned in and watch for more exciting giveaways. You never know when you might be the winner. Don't be the one who misses out.

College Students and Credit Cards

There was an interesting article in the Journal/Sentinel this past Sunday about college kids and the dangers of credit cards. It was a very timely article because I was scheduled to give a lecture to a Real Estate class at Marquette University on Thursday. The point of the article was alerting college kids to the danger of credit cards. Falling into the trap of debt can take a toll on one's ability to finance larger purchase down the road.

It is really important to have discussions with your sons/daughters, nieces/nephews, grandkids, etc. to educate them on the importance of being responsible about not getting in debt. It is never too early to teach kids the importance of learning how to budget. Buying only what you need and saving up cash for major purchases will save you money in the long run. A two hundred dollar item that won't be paid off for 15 months really is costing you $220-$250 depending on the credit card interest rate. Multiply that by much larger numbers and you can see where I am going with this.

For those of you that don't feel comfortable talking about this or do not know where to go to get the information to help, let me know. I have tools and tips available that you can use. In fact, I would even be willing to take 15 minutes and have the conversation for you. I gave the same offer to the students at Marquette. It is important to me to see any and all become educated on what could save them a mountain of interest in the long run. Until next time...

Credit Card Alert!

January is scheduled to be the month that credit card companies are to raise minimum payments from 2% to 4%. This could be the straw that breaks the camel's back for many consumers.

I just heard results from a survey that said 74% of American consumers feel they are having a hard time handling their monthly payments. If that truly is the case, I think this event will have some serious backlash.

For those of you that are concerned about this, there are some steps you can take. First, you need to sit down and gather all of your monthly bills. Next, take the time to create a monthly expense budget. Then, you need to compare that to your paycheck and see how it compares. Do you still have money left over? Do you forsee problems when the credit card payments go up? The one thing you cannot do is ignore it.

I have sat down with a number of people of late and have worked out debt reduction plans to eliminate the potential concern. In fact the results have been great. One couple will see themselves out of debt in less than four years and only have 16 years left on their mortgage. Compared to not seeing their credit card balances go down and still having a 30 year mortgage. It was exciting. All it took was for them to TAKE ACTION!

If you don't know where to start or how to figure it out, don't hesitate to give me a call. I have all of the tools and worksheets for you to use to make it happen. I can even sit down with you and work on it together if you think you will get more dramatic results. Remember that I can be a great resource for you. Remember, TAKE ACTION!

Bubble Talk and 2006 Outlook

Bubble talk

We will enter the fifth year of the anticipated housing bubble. Yes, for the past four years the media has beat the drum on a looming housing bubble. But all the media bubble hype has only served to hurt those buyers who were scared off from purchasing a home earlier and now see how much more those homes cost.
So is there a bubble? The simple answer is no. But some areas may cool a bit after a torrid run up, especially in the top tier of their price category.
However, a healthy jobs market and low mortgage rates will sustain a solid overall Real Estate market. Don't look for a bust in prices…just a slower rate of appreciation. I expect most of the country to see home prices appreciate by 4% to 7%.
But remember, unlike stocks, home prices do not have specialists or market makers. So many people pay or ask too much for their home. It is funny to see someone buy a home for tens of thousands over the asking price and then wonder why their home has not appreciated. Moreover, some purchase their home for say $200k and then try to sell it a year later for $300k. When no one bites, they say the market is soft. Bottom line, buy your home smart or sell your home reasonably.

Rate outlook

Rates will rise a bit due to some inflationary pressure, but not too bad. Keeping rates at good levels will be continued foreign demand and asset reallocation. Our bonds look pretty good to foreigners, who are offered lower returns in their home country. And the Dollar has been stronger and may offer some bonus returns as the greenback makes further gains against most major foreign currencies. In fact, foreign buying accounts for almost half of bond purchases in the US.
As our population ages, more assets will be reallocated from riskier stocks that provide growth to safer bonds, which provide preservation. These factors should keep fixed rates between 6% and 7%, with an average of 6.5% for the year.
Overall, it looks like 2006 will be a great year. But the busier we get, the easier it is to neglect the more important things in life…including ourselves. To help ensure a great year ahead, take the time to take care of yourself. Make YOU a priority. Hit the gym, get a massage, and have fun. What good is your fortune if you aren't able to enjoy it? I wish you the best from the whole KLM Mortgage Group family for a wonderful 2006!