Getting Better

Take a good look in your financial mirror and be honest with yourself. What exactly do I “need”, and what exactly do I “want”? No matter how much you have, there is always a want for more, right?
Best way to start; review your Budget (if you don’t have one, make one right now!). Are you staying in your Budget or are you over (most will be over, it’s human nature)? What can you trim or get rid of? Do you really “need” that item, or is it really a“want”? Can you cut down your utilities? Call your Gas, Electric, Cable and Phone Companies to see what they can do to help reduce your costs. Does your Emergency Savings have 6 months reserves? If not, make sure to get it there to stabilize your safety net.
Are you losing money on Investments? If so, can you move them into more secure venues until the Market turns positive? Call your personal Financial Planner to do a Financial Fitness Check-up, also please call your Insurance Agent to make sure you have proper types and amounts of Coverage’s that are needed for emergencies. What you are cutting away put into Savings. Please remember that it is all right to go out and have some fun, a nice dinner, movie or ball game, but make sure to have all of your fixed expenses paid first.
Financial and Housing Markets will turn around and go up! Gas and food prices have finally gone down, and we are all much more thoughtful in both spending and savings.
Refinancing High Interest Mortgage Loans, ARM and Negative Amortized Mortgages or Debt Consolidation Refinancing are all great ways to stabilize your finances, save more money and increase your security. If you or someone you know has a High Interest, ARM or NegAm Mortgage Loan, please give me a call. Please call me direct at 763-557-5608, or stop in to see me at the Bremer Bank-Plymouth, MN Branch.
Referrals to family, friends, neighbors and business associates are most welcome!
Have a wonderful Holiday Season!
Regards,
Steven

Is it really that bad? Yeah, but....

WOW! What a mess our economy is in! Everyday more bad news just keeps coming. Sounds pretty gloomy, but guess what, we did not get there overnight and it will not be fixed overnight either. We all need to sit down and re-evaluate our finances. No matter how much you earn or spend, there is always a want for more, right?
Here’s the best way to start; review your Budget (if you don’t have one, make one right now!). Are you staying in your Budget or are you over (most will be over, it’s human nature)? What can you trim or get rid of? Do you have enough in your Emergency Savings for 6 months of expenses? If not, make sure to get it there to stabilize your safety net.
Are you losing money on Investments? If so, can you move them into other more secure venues until the Market turns positive? Call your Financial Planner to do a Financial Fitness Check-up, also please call your Insurance Agent to make sure you have proper types and amounts of Coverage’s that are needed for emergencies. Put what you are cutting away in Savings. It’s o.k. to go out and have fun, go out for a nice dinner, movie or ball game, but remember to have your fixed expenses paid first.
Financial and Housing Markets will turn around and go up! Gas and food prices will go down and we are working at fixing global warming too!
If you or someone you know has a high interest or ARM Mortgage Loan, please give me a call. Refinancing may be a great way to lower costs and consolidate debt (which saves you more money!). Please feel free to call me direct at 763-557-5608 or stop in to see me at the Bremer Bank-Plymouth, MN Branch.
Referrals to family, friends, neighbors and business associates are always appreciated and welcome!
Enjoy the cool. crisp fall weather!
Regards,
Steven

ARMs Length?

Millions of Home Owners are facing the dilemma right now to decide whether or not to Refinance their Adjustable Rate Mortgages. If you are one of the few that have around the 4.0% Rate, when your ARM adjusts, you may only increase to 6%. Most people that have ARM Loans are in the 5.50% - 5.875% range. Standard ARM Loans have a 2% Maximum Cap on increases each year. Some may go up 1% every 6 months, others may go up 2% at one time! If your current rate is at 5.875% you may adjust up to 7.875%! This huge jump will drastically increase your monthly payment!
Do you have a Negative Amortized Loan or the Payment Option ARM Loan? If so, you may probably be in an even worse situation. You could possibly owe more now than what your original Mortgage was taken out for, or even owe more than the current value of your property!
Now is the time to look at your refinancing choices! There are new Loan Programs from FHA and Conventional Programs available to help refinancing out of your ARM, Neg Am or Pay Option ARM Loans. I will meet with you and go over your current situation, review your Mortgage Note and find you a new Loan that will be fixed, stable and help with your Monthly Budget. Please give me a call direct at 763-557-5608 or stop in to see me at Bremer Bank – Plymouth Branch.
If you or anyone you know are interested in buying a new property, or refinancing a current property, please call me at 763-557-5608. To start the Pre-Approval process, please stop in at the Bremer Bank -Plymouth Branch. I will be happy to answer any questions you have.
Referrals to family, friends, neighbors and business associates are always appreciated and welcome!
Regards,
Steven

Is now the time to Buy?

Are there opportunities to get a great value in today’s Real Estate Market? You bet there is! Unfortunately bad news for some people is good news for others. No one wants to lose their home, but unfortunately circumstances may be beyond their control and people are forced to sell for a much lower amount than market rate.
Current Interest Rates are still historically low, and the availability of great homes at low prices keeps increasing. Now really is the best time to purchase a new home. The Real Estate Market has begun to turn upwards. People are buying new homes and many are even moving into larger homes.
To find the "gem in the rough" is always the best way to buy. Buyers can find exceptional values by purchasing a home that may need a bit of work (not major construction). Also, there are many "move-in ready" homes that may just need new paint to be perfect for you! Updating the kitchen, bathrooms and family areas are always a great way to make it your own and increase the value!
Upgrading or "move up’ Buyers are in a unique position. They may not get top dollar on their current home, but will be able to buy a more expensive home for a much lower price than during previous market history! Values will go up and equity will increase!
First Time Home Buyers have the more buying power now than they have had in the last decade. Reduced Property Values are all over the State. While the values are low is the time to buy. Just like with investments, buy low and sell high. Your new Property should increase over time as the market gets better, building more and more equity for you.
If you or anyone you know is interested in purchasing a new home, please give me a call at 763-557-5608 or stop in to see me at the Bremer Bank Plymouth Branch to start the Pre-Approval process. I will be happy to answer any questions you have. As always referrals to friends, family, neighbors and business associates are most appreciated!
Enjoy the rest of summer!
Regards,
Steven

Time to 401K !

Do you have a 401Kor 403B? If not, you need to have one!

Most Employers offer some form of Retirement Plan as a benefit to their Employees in fact, they may even offer matching funds!
401K Programs offer ability to chose your own investments, a chance to save pre-tax dollars and an easy way to save for retirement. Employer Contributions are "free money" to help you save even more for retirement.

Start saving by joining the 401K or 403B Savings Plan at work and save as much as is comfortable for you and your budget, but remember that there always will be a demand on your money, something always comes up, but you must save for the future. Consistency is the key for success! Save a small amount form each paycheck, start with 10% (more or less as you feel comfortable). When you can afford to increase contributions, do so. Over time, earnings on your money typically increases, bringing you even more financial security.

Diversify your investments with a variety of Funds can help to reach your goals. If you do not have an Investment Consultant please let me know and I will be happy to give you referrals.

You are in the driver’s seat. Employers and Fund providers usually will make investment education available to you, but it is your responsibility to build up the retirement nest egg that you need. There is no need to micromanage your funds, just use smart saving strategies to help make your money grow over time.

• Research savings education resources such as www.choosetosave.org
  
• Meet with a Financial Planner
  
• Diversify your investments with a variety of Funds that will help achieve your specific goals
  
• Rebalance Funds when Equity/Fixed Income percentages are more than 5% off your target goals
  
• Track savings progress at every age milestone

The Federal Government limits the amount that you can contribute to an Employer Sponsored Savings Plan on a pre-tax basis. You save pre-tax dollars from your gross income, so your contributions will reduce your taxable income. It may make good financial sense to contribute the maximum amount and cut your tax liability. Please consult your Financial Planner or Tax Consultant for advice on your specific financial needs.

Refinancing your primary residence, vacation home or investment properties for a lower interest rate, monthly savings or debt consolidation is a great way to add more to your Retirement Savings. Put the savings each month into your 401K, 403B or IRA Retirement Accounts and watch your funds increase quickly.

If you or anyone you know is looking to refinance please call me direct at 763-557-5608, or stop in to see me at Bremer Bank—Plymouth, MN.

Referrals to family, friends, neighbors and business associates are always appreciated and welcome!

Enjoy the Holiday Weekend!

Regards,
Steven Goldman

Is it too late?

IT’S NEVER TOO LATE TO SAVE!!!

You are not behind the 8-ball and can still start saving today!

Every dollar you save is one more closer to a comfortable retirement. Unfortunately many people today have not been able to save for their future needs, let alone retirement. This is a goal that we must all have and it can be done (even if your retirement is not far off!)

Bit by bit: Set aside a small amount from each paycheck, say about 10% and put this into your Retirement Account and/or Savings or Money Market Account for emergency needs. If your Employer offers either a 401K or 403B Retirement Plan, take advantage of this, especially if they have a matching funds program! If you can set aside more, then you will be increasing your savings even faster!

Set realistic goals: Decide how much money you will need to have the retirement lifestyle you want. Pay off high interest credit cards and loans now, and only charge what you absolutely need to. Once you have paid off a bill, deposit the same amount of the payment into your Savings and/or Retirement Accounts, growing your nest egg even larger.

Refinance: By refinancing your primary residence or vacation home for a lower interest rate, monthly savings or debt consolidation you will be able to add more to your Savings. Put the amount you are saving each month into your Savings and/or Retirement Accounts and watch your funds increase quickly.

If you or anyone you know is interested in refinancing, please call me direct at 763-557-5608, or stop in to see me at Bremer Bank—Plymouth, MN.

Referrals to family, friends, neighbors and business associates are always appreciated and welcome!

Enjoy your summer!
Regards,
Steven

Challenging Times

Rising fuel costs, the declining value of the dollar, decreasing home prices, increased food costs and reduced consumer spending are all greatly impacting the economy.
The underlying cause of many of today’s problems may be linked directly to credit markets

Other factors impacting our current economy:

• Home values continue to drop in many parts of the country. Some Economists believe that this represents a "right-sizing of the true cost" of home values which had become inflated. Victims of Sub-Prime Lending and people who simply bought more home than they could afford are driving many of today’s foreclosures.
  
• Unemployment has been on the rise. As a result, Americans do not have the purchasing power of the past five years. That surge in consumer spending has been a key economic driver for some time.
  
• Rising fuel costs impact everyone from individual consumers to major businesses. Airlines and trucking companies are becoming less profitable, forcing bankruptcies and consolidation in the industry – and passing higher costs onto consumers.
  
• Food prices have had large increases over the past 12 months. Rising energy costs for production and transportation combined with growing worldwide food demand and the shift to producing ethanol rather than food have all had a negative impact.

Consumers are losing confidence in the economy along with the drop in their Real Estate values. Until that stabilizes, Consumer optimism will most likely remain low, causing fear and caution, impacting spending habits and willingness to invest.

Is there light at the end of the tunnel?
In the midst of all the doom and gloom, steps are being taken to address the multiple issues facing the U.S. economy. As it has in the past, Government intervention may provide significant relief.
Congress is currently debating several actions to ensure that Student Loans don’t dry up for borrowers.
The Federal Reserve has drastically cut interest rates, lowered collateral standards for banks and created discount windows for brokerages seeking overnight loans.
The IRS will soon begin mailing Americans millions in tax rebates (the centerpiece of the Government's $168 billion stimulus package), flooding the economy with cash that will be used to pay down debt, drive consumer spending and increase savings.
Multiple plans at both State and Federal levels are being implemented to keep people out of foreclosure or provide them with time to ‘catch up’ on loans that are delinquent.
The Government has also allowed the two Housing agencies, Fannie Mae and Freddie Mac, to purchase more mortgages, improving liquidity and price. They are expected to purchase more than $300 billion in additional mortgages as a result of the latest government actions.

More positives?
Some experts are saying that the dollar is stabilizing. A weak dollar isn’t all bad, it makes U.S. produced goods cheaper for foreigner buyers. As a result, the demand for U.S. exports increases. This increase in exports leads to a reduction in the trade deficit.
Existing home sales rose both in January and February. Low interest rates continue to attract both Buyers and Refinance Clients. Plus, certain segments such as Senior Housing have seen prices hold while demand increases. As both house prices and mortgage rates fall, the housing affordability index, published by the National Association of Realtors, has hit a three-year high.
Some businesses, such as energy alternatives and "Green Companies", are actually flourishing in an environment where gas prices rise almost daily. This growth area, combined with an intense focus on ‘green-living’ will create new jobs and drive investment in new technologies.
Farmers are reporting record crop prices. The price of farm land has increased significantly. The growth of per capita income has outpaced the national average by a wide margin. Sales of farm equipment like tractors and combines are strong.
Our economy in the United States is cyclical and we’ve lived through this type of challenging cycles before. Every recession is unique and has different solutions and responses. Americans are very good at responding to and weathering these difficult times.. There’s a lot of energy being put into solving the problems and I think that should give people hope.
If you have any questions regarding purchasing a home or refinancing your current home please give me a call direct at 763-557-5608 or stop in to see me at the Bremer Bank Plymouth location at your convenience.
As always, referrals to family, friends, neighbors and business associates are most welcome!
Enjoy the Spring weather.
Regards,
Steven

Tough times? Buckle down.

WHAT CAN WE DO?

Mortgage, Banking and Real Estate Industries are all being hit hard. Home prices are down. Retailers are down. Gas and Food prices are up. What can we do? Now more than ever, we need to revise our Monthly Budget and cut where we can.

If you have a property value that is increasing and have a nest egg that is not shrinking, I applaud you for wise investment and money management. If you are like most people, with bills piling up, declining property values and minimal or no nest egg or emergency funds, there is still time to get out of this situation.

Here’s how: most importantly, pay yourself first! Set aside a comfortable amount from each check, say 10%. These funds are to be for emergency only! Keep your Mortgage payments on time. Make sure you are paying your credit cards and car loans on time too. If you are able to pay them off, you will be saving on future interest charges to these creditors. By paying them off you can keep the additional interest yourself. Once the bill is paid in full, set aside the same amount for that bill in your savings, you will be amazed how quickly it adds up! (also giving you more financial security).

Cut out the frivolous spending. Buy only what is necessary. We all like to eat out, but cooking at home brings the family together (and food always tastes better when its made with love!) Have friends over and pot luck. It’s amazing what one night of fun with friends can do for your spirits.

The economy will improve, housing prices will rise and we will be able to save more money for future needs! We have all been in situations that seem hopeless, but a ray of sun comes out and all begins to get better. Careful spending, continuous savings and smart money management will help us all make it through these tough times.

Look at refinancing to lower your monthly payments, get out of an Adjustable Mortgage Loan, or use available equity to consolidate bills to put yourself in an overall better financial position.
If you or anyone you know is interested in refinancing, please call me at 763-557-5608, or stop in to the Bremer Bank Plymouth Branch.

Referrals to family, friends, neighbors and business associates are always welcome!

Spring is here!
Regards,
Steven

Buyers Have Hard Decisions

Use a Qualified Mortgage Banker to Ensure the Best Results

Taking the step into home ownership is one of the most important financial decisions a person will make in their lifetime. There are many factors to consider when starting this venture. There are many loan programs available, both Conventional and Government, and it is important to find the one that best fits your personal long-term goals.

First and foremost, you must have a trustworthy Mortgage Banker in your corner that is willing to take the time to know and understand what your long-term goals are. Communication is the key factor here. Be upfront and honest with your information. If not, the truth will come out eventually and you may not be able to qualify for the loan program that you want.

Curious prospective home buyers sometimes turn to Internet-based services just to see what current interest rates are. But a faceless web site will not care about your future financial well being, or guide you through the various stages of the loan process. When shopping for a home loan, be wary of web-based services that offer programs to reel prospects in with attractive rates that are based upon unrealistic time frames.

If a Broker or Lender is offering a terrific rate based on a 10-day lock-in period, it is unlikely that you would actually be able to find your dream home, get through the negotiation process and win approval from a lender within such a short period of time. This is called short-pricing, and when it comes time to close the transaction, the rate that was originally offered is simply no longer available. Which means you as the Buyer would potentially be bulldozed into a loan program with a higher interest rate. As a fully qualified Mortgage Banker whose business is based upon referrals, I would never use unscrupulous tactics such as this to get new customers in the door!

Once you are ready to begin the Mortgage Loan Process, lay your goals out on the table because it will have a tremendous impact on choosing a loan program that meets your specific needs. One of the most important factors to consider is how long you wish to borrow the money for. For example, if you know you will only be in the home for five years, it would not make sense to opt for a 30-year loan program or pay additional discount points up front to secure a lower interest rate. You would not be in the home long enough to benefit from such action.

I will be able to narrow down a selection of programs based on the information that you have provided, and present you with an easy-to-read proposal that clearly defines viable options for your interest rate and amortization schedule, monthly payment and any potential savings you may realize by paying points up front. Also, if you would like, I will review this information with your tax consultant or financial planner so they may offer additional feedback on your behalf.

Home ownership imparts a rewarding vehicle for building wealth and a strong financial future. As your Mortgage Banker, I will be there throughout the entire process including when your loan closes. Plus, I will also provide you with ongoing service to assist you in managing your largest asset over time.

Please give me a call direct at 763-557-5608 to set up a convenient time to meet to go over your current needs. Referrals to friends, family, neighbors and business associates are always welcome!
Regards,
Steven

FED CUTS RATE

Historic Fed Move Cuts Both Ways for Borrowers

Hot on the heels of its surprise inter-session rate cut of 75 basis points last week, the Federal Reserve cut key interest rates again, the fifth straight cut since September 2007. In its statement last week, the Fed said: "it had decided to cut the Federal Funds Rate in view of a weakening of the economic outlook and increasing downside risks to growth." The economic data suggests the US is on the brink of recession, and the Fed is acting accordingly.

Who benefits from this cut?
If you have a loan that is directly tied to the Prime Rate, you will see an immediate benefit. Home Equity Line Of Credit (HELOC's), Variable Rate Loans and charge cards are the types of loans that will have an immediate interest rate reduction. These changes should reflect on the next statement.

What this means for long-term rates?
Long-term Mortgage rates, the lowest we have seen in years, could actually increase after Wednesday's cut, based on historical performance and recent trends. If you are waiting for long-term rates to go down even more, don't count on it. Your best chance to lock in the lowest rates since 2005 is now. By getting your application in process now will allow you to secure a low fixed-rate before it's too late.

What REALLY moves Mortgage rates?
Fixed-Rate Mortgage rates are not directly tied to the Fed Interest Rate moves. The Mortgage Rates actually tend to follow in the direction of other long-term Government Bond yields, like the 10-year Treasury Bond, which historically changes in accordance with the economic outlook and in advance of Fed actions. The performance of Mortgage Backed Securities, issued by Fannie Mae and Freddie Mac, is what really determines long-term Mortgage Rates.

How does the economic stimulus package fit into the picture?
The economic stimulus package from Congress and the White House could be a double-edged sword for Borrowers. Combined with recent Fed actions, the package could create inflation and bring about higher long-term interest rates.
On the positive side, Conforming Loan limits are likely to be raised from the current $417,000 to upwards of $625,000. Which means greater potential savings for purchase and refinance Clients who live in high-cost areas across the country.

What should you do next?
If you are unsure how the rate-cut or the proposed legislation affects your Mortgage, don't worry, you're not alone. Please give me a call at 763-557-5608 or stop in to the Plymouth Branch today. I will review your current Mortgage terms and work with you to see what can or should be done to make the most of your personal financial goals and needs.
I hope that this information has been helpful to you.
Thank you for your past business. I look forward to working with you again in the near future.
Regards,
Steven

MORTGAGE TRUTHS

The TRUTH about the Mortgage Market
Sub prime Mortgages have been credited for bankrupting hundreds of Lenders and seriously damaging operations at many major Banks and Mortgage Firms. They've reportedly wiped out 5 hedge funds, tens of thousands of jobs, and have led to millions of foreclosures with more on the way. If that were not enough, Sub prime Mortgages are also blamed for massive volatility in the Stock, Bond, Credit, Futures, and Real Estate markets in the US and around the globe. Some Analysts say losses in the Mortgage Securities Market alone could reach hundreds of billions of dollars this year. This means if you are looking to buy, sell, or refinance a home, you will be confronting a very different market from the one that existed just 6-12 months ago.

How did this happen?
The recent real estate boom was fueled by a period of record home appreciation and historically low interest rates. Banks and Mortgage Lenders, in order to compete, loosened guidelines and began offering more funding to more borrowers through riskier, non-conforming or "exotic" mortgages. These ideal lending conditions persisted for several years, supported by high demand, historical real estate data, home prices, and massive trading volume/profits on mortgage-backed securities and other financial instruments on Wall Street.
In 2006, slowdown in real estate led to a deterioration of home values, an increase in inventories, and ultimately to today's tightening of credit guidelines, leaving many investors unable to sell or refinance out of their existing positions. Many people that had tapped into their equity were suddenly tapped-out and overextended as home values fell. Foreclosures followed in record numbers and a re-valuation of Mortgage Bonds and other financial instruments created the credit/liquidity domino effect we are now experiencing.
Unfortunately, it's going to get a lot worse before it gets better. According to the latest estimates, over 2 million sub prime and adjustable rate mortgage (ARM) holders will face payment increases of up to 30%-100% when their loans reset in the next 2 to 18 months. These loans make up less than 40% of the total mortgage market, but the negative effects of increased foreclosure activity can have a ripple effect throughout the industry and around the globe.
What does this mean to you and your Mortgage?
Sellers:
If you're planning on selling your home, be prepared for an even smaller pool of qualified buyers. While some experts predict a settling of this credit crisis over the coming year, tightened credit guidelines and diminishing mortgage products could knock out as many as 15%-30% of potential qualified buyers. Now is not the time to sit and wait for the best possible price. Have a serious talk with your Real Estate Agent. Having experienced both buying and selling transactions in your area, they can help you price your home accordingly, and also help ensure that your Buyers are pre-approved and stay pre-approved throughout the entire transaction.
Buyers:
Get pre-approved by your Mortgage Loan Officer, Steven Goldman. While there are a lot of great deals out there, getting credit is becoming tougher and tougher, and it's taking longer and longer to complete a transaction. Remember, what you qualify for today could change tomorrow in such a volatile market. For those of you looking to refinance, keep this in mind. There is no time to delay! Communicate with your Lender. Do not do anything that could negatively affect your credit, and make sure you get all your documentation in on time.
ARM Borrowers:
If your Adjustable Rate Mortgage is going to adjust in the next 2-18 months, you need to schedule an appointment with Steven Goldman right away. Whether your ARM is Sub prime or even if you have a pre-payment penalty, don't let a default or foreclosure situation sneak up on you. Did you know that your monthly payments can increase anywhere from 30% to 100% once your loan resets? At the very least, give yourself the peace of mind of knowing what your new adjusted payment will be.
Borrowers with less-than-perfect credit:
Each week it seems Lenders are shedding more and more mortgage products. Many Lenders have stopped offering No-Doc loans and are reducing all forms of Stated-Income loans. It may be challenging, but Borrowers with credit issues need to call me immediately, as I have Credit Repair resources and other strategies to help you reach your financial goals.

Finally, there's an important concept to embrace: all markets, while cyclical in nature, are self-correcting, be it Credit, Real Estate, Stocks, or Bonds. For the last 6 or 7 years, Real Estate was booming and riding high. The correction we're experiencing now – while it seems harsh and could get much worse – is, in a sense, "natural" and directly related to the extremely loose guidelines and perhaps overzealous lending and leveraging during the boom cycle.

FHA and Bond Loans:
There are several great programs that are being offered under the FHA (Federal Housing Administration) Government Bond Programs as well as local City, County and State Bond Programs. Rates, fees and costs tend to be lower in these Programs as well.

If you or anyone you know may be interested in a purchase or refinance Mortgage, please give Steven a call at 763-557-5608 for more information on these or any of our other loan products. As always, referrals to family, friends, neighbors and business associates are most welcome!
Enjoy the Winter.
Regards,
Steven