Home Loans

Buying a home can be an intimidating process. Know what helps? Solid background information from someone you know and trust. Tim Treml, Bank of Luxemburg’s Chief Lending Officer, has useful information about both buying and building a home in today’s market that should save you time, money, and hassle!

Community Banking

Did you know April is Community Banking Month?  When you’re a community bank, it’s really a reason to celebrate.  At Bank of Luxemburg, our involvement started in 1903 with a group of local farmers pooling their assets together to open a community bank, and that commitment to Luxemburg and the surrounding communities remains strong today.  Bank of Luxemburg remains an involved and supportive part of the community whenever possible.

Bank of Luxemburg is a corporate sponsor for a variety of events including:

• The Kewaunee County Fair
• Mardi Gras Event
• Taste of the County

Bank of Luxemburg supports the economic development of our community through:

• Kewaunee County Economic Development Program
• Main Street Program
• Buy Local Initiative in Kewaunee County

Bank of Luxemburg holds various “drives” to help those in need including:

• School Supply
• Toys for Tots
• Food

There are other ways Bank of Luxemburg stays involved:

• High School Sports Sponsorship Opportunities and Programs
• Summer Cookouts (with proceeds benefitting local organizations)
• Community Easter Egg Hunt
• Participation in Local Parades

Supporting a local bank means supporting yourself and others like you in the community.  We think our employees say it best.  Check out our YouTube video where real Bank of Luxemburg employees share what community banking means to them.

Overwhelming Debt?

No one wants to be in debt.  But…it happens.  Instead of giving up and continuing down the same path, think about taking a good, hard look at your debt and coming up with a plan to get out of debt.  The good folks at Bank of Luxemburg also want to help, starting with these easy steps:

Step 1--Don’t Panic
Some people work well under pressure.  More often though, too much pressure can be a hindrance to finding success.  If you are bearing an emotional load due to the debt you’re experiencing, it may be difficult to move forward and deal with it.  With that being said, stop feeling bad and start looking ahead.  The damage is done, and all you can do now is work to fix it.  Any other energy you expend feeling “bad” about it, is quite frankly, just wasted energy.

Step 2--Look at the Big Picture
Are you on the run from creditors?  Is your debt so crushing that you are living in a box, going to bed hungry each night?  Can you not afford the essentials for your children?  Chances are, despite your debt, you have it pretty good.  Keep that in mind as you forge ahead to handle your debt.  Chances are your debt is from a few maxed out credit cards and ongoing student loans.  Count your blessings and realize that compared to the other 97% of the world, you’re actually doing just fine.

Step 3--Make a Plan
To avoid increasing late fees and finance charges, it’s important to not stand idly by and do nothing.  A plan is necessary—a good, solid plan.  Start by looking at how much money you bring in each month and comparing that to how much goes out each month.  What are you spending money on?  Do you see places right off the bat where you can start cutting?  (Sorry morning latte.)  Find as many places to cut your expenses as possible, even if that means a smaller cell phone plan, doing without cable TV, and cancelling monthly memberships and subscriptions.  These cut backs may only be for a short period of time until you get back on track.

List your debts in order of importance:  As you look at the credit cards that are maxed out, consider making extra payments on the ones with the largest interest rates first and then move down the line.  You can even contact the credit card companies and negotiate lower interest rates.  (Minimum payments are not going to cut it, if you want to get out of debt.)

Step 4--Search Out Help
Let’s be honest, sometimes it’s hard to be unbiased when you’re too close to the problem.  That’s why financial experts exist.  A good credit counselor can advise you more objectively on places to cut back, whether debt consolidation is best, and how long it will realistically take to pay off debt.

Reaching out to local experts who can help is a smart idea.  Bank of Luxemburg has staff available for debt consolidation and financial planning.  Call Bank of Luxemburg today at 920 845-2345 to start down a better path. 

Source:
http://www.howtodothings.com/finance-and-money/a3327-how-to-deal-with-debt-problems.html

Evaluating Interest Rates

Various financial institutions want to service your loan. Whether it’s a home loan, a car loan, or a personal loan, this can be a big decision. How do you decide if an interest rate is right for you?

First, let’s take a look at where interest rates come from and whether or not there is a standard interest rate or whether they are being selected arbitrarily. Interest rates are based on a couple factors.  One …the amount of money you are looking to borrow. Two … the number of months in the loan’s term. 

Second, learn the difference between fixed and variable interest rates. A fixed interest rate will stay the same for the duration of the loan. A variable interest rate will fluctuate without warning. Also important is to make sure to understand the special terms and conditions that may apply with “special” or “introductory” rates. In other words, be skeptical about “special financing offers,” and be sure to read the fine print.

Third, calculate some numbers on your own before visiting a financial institution. Compare across the board to see which financial institution offers the lowest interest rates given your circumstances.

Determine how many months are reasonable for your loan’s term. Once you discover a suitable interest rate, determine how the lenders you are considering will apply that rate to your loan’s principal. 

It’s always best in these situations to consult with someone you trust to get the best information. Call a Bank of Luxemburg loan officer at (920) 845-2345 to see how our interest rates and service compare. You can also learn more about us by visiting our web page at bankofluxemburg.com.

Financial Fitness for 2013!

Looking to start the new year on the right foot?  Here are some great ideas from the Community Bankers of Wisconsin that Bank of Luxemburg endorses.

Create a New Financial Plan for the New Year

Now that the holiday gifts have been unwrapped and thank-you messages expressed, January is a great time to review what went right with your financial goals last year and where you’d like to make improvements in 2013. Are credit card balances larger than expected? Maybe last-minute gift purchases, holiday entertainment or travel expenses were higher than planned. Or, perhaps a year-end emergency required extra cash. 

A financial review can help you set a new direction and get on a stable path for the New Year. First, add up any unexpected year-end expenses. Do they exceed what you can realistically pay within a month or two? 

If these expenses present a real challenge and will likely take several months to pay off, consider how you might confront the task. 

Can you cut back on some expenses? Even several small changes can make a difference. For example, you might decide to join or start a carpool; cut back on soda, alcohol or cigarette purchases; or give up all restaurant meals until the debts are paid off. 

Can you temporarily increase your income? Maybe you can work extra hours, help a neighbor with snow shoveling, or tutor students. 

Once you have a handle on dealing with any recent, higher than expected expenses, look at the year ahead. Try to identify any possible bumps in the financial road. Will you owe additional federal or state taxes? Will there be added travel or school costs this year? 

If your anticipated income will not meet your anticipated expenses, consider how you might close the gap. It’s easier to explore your options now before a foreseen gap becomes a true emergency. 

Can you decrease or eliminate any ongoing expenses? Maybe a neighborhood movie night or board game tournament could substitute for more costly nights out. Many libraries offer after-school programs for children, not to mention free books and DVDs. Maybe you can replace a vacation with trips to local museums or backyard camp-outs. 

Can you increase your income—perhaps by adding a part-time job or offering lessons in your favorite hobby? Maybe this is the time to finally start that business you’ve been dreaming about. If you decide to start a business, begin it as a part-time venture. This is not the time to quit your day job. Still, the desire to increase your income can sometimes lead to the beginning of a new and exciting career path. 

Additional resources: 

• The Dane County UW-Extension Financial Education Center offers resources for people with moderate incomes, including budget worksheets. 
• The UW Cooperative Extension offers help in planning for gift-giving. While the article listed here, addresses year-end holiday giving, many ideas would also apply to year-round gift-giving occasions. 
• The National Endowment for Financial Education offers its website, containing many financial resources, including information about spending, credit and debt, as well as an article on how to avoid a “holiday shopping hangover.” 

Source: Community Bankers of Wisconsin

Bank of Luxemburg Chief Operating Officer Rebecca Edler provides more tips on Fox 11's Living with Amy:

Raising Charitable Children

Among the many challenges parents face in raising children, instilling values ranks high on the list in importance. We all want our children to share our values (hard work, faith, generosity, etc.) and carry them on for future generations. One key value you can instill in your children is an appreciation for charitable giving.

Fostering an appreciation for charitable giving truly begins at home. Make it a family activity and model the behavior you want your children to emulate. When it comes to making monetary donations, show them how you select a charity, set realistic charitable giving goals and then make a schedule and adhere to it. Make them a part of the process and educate them about the impact your donations can make on an organization.

While making financial donations is important, don’t forget to discuss the many other different ways to contribute. Often giving your time and talent is equally important. Choose a location to volunteer as a family—a soup kitchen, community event or church activity, deliver meals to the homebound or help at the local animal shelter. The opportunities are limitless, as are the teachable moments.

Remember, it’s almost never too early to start sharing charitable activities with the next generation. Even at age three or four children can select a toy to give to a less fortunate child at the holidays, help clean out their closet and donate the outgrown clothing or be a part of your local acts of kindness—such as visiting an elderly neighbor or cooking for a sick friend. To get started, help your child open a savings account and teach them to save properly. Once they learn to save, they will have the funds available to also give.

If you want to bring up children who value charitable giving, make it a cornerstone value in your life and they will build upon it for a lifetime!

For more information, see Bank of Luxemburg Chief Operating Officer Rebecca Edler give tips for charitable giving on FOX 11's Living with Amy.

Get into the giving spirit

Bank vs. Mortgage Broker: You Be the Judge

Over the past few years, as people have been refinancing left and right due to plunging home loan rates, home owners are faced with the question—do we finance our loan through a local bank or a mortgage broker?  It’s a common, valid question.  Here are some truthful answers to help guide your decision.

Banks

When you finance your mortgage through a local bank, you meet with a local loan officer, and they can guide you through the process. They will address any problems you may encounter before, during, or after the loan process. They know the specifics about the area where your home resides, which is beneficial when it comes to home insurance and what coverage you may or may not need, based on your geographic location. When you make a payment or have questions come tax time, you can walk into the local banking establishment and take care of any necessary business.   

It’s worth noting that while not all banks service 100% of their loans, Bank of Luxemburg currently does. What this means is that, every customer who is approved for a loan through Bank of Luxemburg can rest assured that their home loan is being taken care of by Bank of Luxemburg.

Mortgage Brokers

It’s important to point out that a mortgage broker is paid a commission to find a match between a mortgage lending company and a buyer. They will only be paid a commission if they make this match happen, which oftentimes occurs even when the match is less than ideal.  

Example: Think of it the same way as financing a vehicle through a dealership. You want to buy a car. The dealership wants you to buy the car, so they can collect their commission. They have you fill out a loan application and send it into cyberspace for any lending company to snatch up at a good rate. This company doesn’t have to be local and doesn’t necessarily know anything about you or the area you’re in.

Mortgage brokers work the same way, sending your mortgage application to a multitude of lending establishments to allow them to “fight” over your mortgage. Once a lender is chosen, it doesn’t have to be a local company (most often it’s not). What this means for the borrower is that problems could arise—the lending company might not be familiar with terminology, regulations, or insurance exclusive to the region. Issues like these could slow down the loan approval process. Lastly, once the loan is financed, the buyer can’t go back to the mortgage broker for help. Prior to this, during the borrowing process, the mortgage broker has been a go-between. Once the closing occurs, the buyer is on their own to deal with an out-of-state lending company they’ve never spoken with before.

Fees

Believe it or not, whether you are working with a bank or a mortgage broker, there are fees involved. You could see them up front (as in the case of banks), or they could be hidden (as in the case of mortgage brokers). With a mortgage broker, you’ll see higher charges for some areas such as “application processing fee,” “doc. prep fee,” “paying for points,” and also “closing costs.” Typically, the fees associated with your loan will actually be higher when working with a mortgage broker.  

A Great Opportunity!

Lakeshore Community Action Program, Inc. is offering income-eligible homebuyers a $5,000 grant for the down payment of a home in Door, Calumet, Kewaunee, Manitowoc, or Sheboygan County. Buyers will be required to complete an education and counseling class, must have income that qualifies (per approved for a first mortgage), cannot have owned a home in the past three years, and purchase the home in specially designated areas.  

Homebuyer Education will be offered Friday November 30th from 9am – 3pm at Bank of Luxemburg at 100 Old Orchard Avenue in Casco, Wisconsin. Lakeshore CAP Homebuyer Education offers practical tools, consumer information, and includes handouts for each participant about the home buying process. This workshop is sponsored by a generous donation from Bank of Luxemburg. To register for the workshop, please call 1-800-924-0510.  Lunch and refreshments will be provided. Lakeshore Community Action Program, Inc. is an Equal Housing Opportunity Agency.