Robert Thomas Homes,
Single Family Homes
available from $300-$400,000
We are pleased to announce the Tradition Family of Companies has started a new home building entity named Robert Thomas Homes, Inc. in the spirit of tradition since 1906.
Lead by long-time friend of Tradition, Todd Stutz, Robert Thomas Homes will complement Homes by Tradition.
Robert Thomas will initially focus on meeting the needs of the $300,000 to $400,000 single family home buyer, while Homes by Tradition headed by Dean Nelson will continue to focus on meeting the needs of the $400,000 plus custom homebuyer.
Robert Thomas Homes will open its first neighborhood in Spirit of Brandtjen Farm east of the community center in fall 2011. Their first model home is available for viewing and is located at 4583 168th Street West, Lakeville, MN.
Welcome to a new tradition in home building...
Locally owned, Robert Thomas Homes offers the very best in architectural design, home quality, and neighborhoods. Robert Thomas Homes – in the spirit of tradition since 1906.
WHAT TRULY CAUSES MORTGAGE RATES TO RISE OR FALL?
Contrary to popular belief, the money for conforming mortgages does not come from banks at all, it comes from bond investors. Just like the U.S. government sells treasury bonds to fund its operating needs, the mortgage lenders Fannie Mae, Freddie Mace, and HUD obtain funds by selling bonds too.
These mortgage-bonds are backed up by the collateral of the individual homes secured against each mortgage, and the guarantee of Fannie Mae and Freddie Mac, the two biggest mortgage-bond creating institutions.
Fannie Mae and Freddie Mac buy mortgages from all the major lenders (Tradition Mortgage loans as well!) using funds obtained by selling mortgage bonds to institutional investors all over the world.
These mortgage-bonds are popular investments in times of economic uncertainty, such as seen over the last few years, as investors seek “safe haven” investments to conserve capital. The high demand for mortgage-bonds due to their perceived safety has driven down the yields (return) and that is precisely why we see very low mortgage rates.
As our US economy continues to recover, investors are starting to seek out stocks and other higher yielding investments. Both the cost of inflation, and the opportunity cost of better yielding investments are considerations when determining market bond rates. The more confident investors are feeling, the more yield has to be offered by mortgage-bonds in order to attract a constant stream of mortgagebond buyers to ultimately provide the dollars to fund your personal home mortgage.
The days ahead offer much uncertainty regarding the speed of our economic recovery, but you can count on the mortgage rates moving higher as confirmed reports of economic strength are released. The reports to watch include retail sales, unemployment, jobs numbers, producer prices, consumer prices, and inflation figures.
New FHA Streamline Announcement
HUD announced that they will be rolling back the insurance premiums on this program for loans closed prior to June 2009. The Upfront Premium (the one that is added into the loan amount) will be .01% and the annual premium (the one that is paid in the monthly payment) will be slashed to .55%. These cuts could reduceborrowers’ expenses drastically. This program can be done where the lender pays the closing costs – without an appraisal, income verification, or even a credit check. Most lenders will look for a good mortgage payment history.
The VA IRRL – (Interest Rate Reduction Loan)
For people with existing VA mortgages, this program allows reasonable closing costs to be added into the loan. There is no new appraisal required, nor is there an incomecalculation. Basically, as long asthe veteran is getting a payment at least $50 lower, it isgood to go. In somecases, veterans may choose to reduce the term of their loan (instead of a monthly savings). This can be done with some documents delivered to the lender.
HARP 2 (stay tuned)
This is a program for loans currently owned by Fannie Mae and Freddie Mac wherein the house is underwater. Under this program, we may be able to reduce your interest rate despite your loan-to-value. The secondary market is still developing their own underwriting and risk criteria, but the good news is that people with good payment histories will soon be able to take advantage of the great rates – even though their home has declined in value.
Thanks for your business,
Erik Hendrikson
President, Tradition Mortgage
Tradition Capital Bank- an opportunity to serve
Coupled with growth, we recognize the importance of maintaining strong ties to the communities we serve. As such, we have a vision of how to improve the communities in which we reside and work. The bank created its Keystone Committee as a way to provide this support.
Vision – The vision of Tradition Capital Bank’s Keystone Committee is to leave a legacy of goodwill in the community and to provide opportunities for our employees to live more fulfilling lives by participating in this initiative.
Objective – The objectives of the Keystone Committee are to help people by giving to our community, to promote team building, and again, to provide employees with opportunities to serve the community.
Results - Tradition Capital Bank’s Keystone Committee directs a percentage of its profit to various non-profit organizations on an annual basis. Over the years, the bank has supported organizations such as Hope for the City, Big Brothers Big Sisters, Way to Grow, Hope Kids, Feed my Starving Children, Children’s Cancer Research and Meals on Wheels.
Future – The bank plans to increase its giving by over 40% in 2012 due in large part to the bank’s successful growth.
Beyond the Keystone objectives identified above, Tradition Capital Bank also works to finance the growth of companies and, as companies expand, new jobs are created. Further, we finance the construction of new homes and buildings, helping to create better places for people to live and work.
Lastly, many of our directors, officers, and employees serve on nonprofit boards and volunteer their time with important community organizations. Their personal commitment and service to these organizations is another way we are working to make a difference and to build better communities in Minnesota.
For more information please contact Dan Fagan, President & Chief Executive Officer 952.806.6650.
Changing Jobs? Take Your 401(k) and ... Roll It!
Presented by Timothy C. Gunderson, CFP®, ChFC, CLU, CPCU
If you've lost your job, or are changing jobs, you may be wondering what to do with your 401(k) plan account.
It's important to understand your options.
What will I be entitled to?
If you leave your job (voluntarily or involuntarily), you’ll be entitled to a distribution of your vested balance. Your vested balance always includes your own contributions (pretax, after-tax, and Roth) and typically any investment earnings on those amounts. It also includes employer contributions (and earnings) that have satisfied your plan's vesting schedule. It's important for you to understand how your particular plan's vesting schedule works, because you'll forfeit any employer contributions that haven't vested by the time you leave your job.
Don't spend it, roll it!
While this pool of dollars may look attractive, don't spend it unless you absolutely need to. If you take a distribution you'll be taxed, at ordinary income tax rates, on the entire value of your account except for any after-tax or Roth 401(k) contributions you've made. And, if you're not yet age 55, an additional 10% penalty may apply to the taxable portion of your payout.
Should I roll over to my new employer's 401(k) plan or to an IRA?
Assuming both options are available to you, there's no right or wrong answer to this question. There are strong arguments to be made on both sides. You need to weigh all of the factors, and make a decision based on your own needs and priorities. It's best to have a professional assist you with this, since the decision you make may have significant consequences--both now and in the future.
Reasons to roll over to an IRA:
• You generally have more investment choices with an IRA than with an employer's 401(k) plan. You typically may freely move your money around to the various investments offered by your IRA trustee, and you may divide up your balance among as many of those investments as you want. By contrast, employer-sponsored plans typically give you a limited menu of investments (usually mutual funds) from which to choose.
• You can freely allocate your IRA dollars among different IRA trustees/custodians. There's no limit on how many direct, trustee-to-trustee IRA transfers you can do in a year. This gives you flexibility to change trustees often if you are dissatisfied with investment performance or customer service. It can also allow you to have IRA accounts with more than one institution for added diversification. With an employer's plan, you can't move the funds to a different trustee unless you leave your job and roll over the funds.
• You can roll over (essentially "convert") your 401(k) plan distribution to a Roth IRA. You'll have to pay taxes on the amount you roll over(minus any after-tax contributions you've made), but any qualified distributionsfrom the Roth IRA in the future will be tax free.
Reasons to roll over to your new employer's 401(k)plan:
• Many employer-sponsored plans have loan provisions. If you roll over your retirement funds to a new employer's plan that permits loans, you may be able to borrow up to 50% of the amount you roll over if you need the money. You can't borrow from an IRA--you can only access the money in an IRA by taking a distribution, which may be subject to income tax and penalties.
• A rollover to your new employer's 401(k) plan may provide greater creditor protection than a rollover to an IRA. Most 401(k) plans receive unlimited protection from your creditors under federal law. Your creditors (with certain exceptions) cannot attach your plan funds to satisfy any of your debts and obligations, regardless of whether you've declared bankruptcy. In contrast, any amounts you roll over to a traditional or Roth IRA are generally protected under federal law only if you declare bankruptcy. Any creditor protection your IRA may receive in cases outside of bankruptcy will generally depend on the laws of your particular state. If you are concerned about asset protection, be sure to seek the assistance of a qualified professional.
What about outstanding plan loans?
In general, if you have an outstanding plan loan, you'll need to pay it back, or the outstanding balance will be taxed as if it had been distributed to you in cash. If you can't pay the loan back before you leave, you'll still have 60 days to roll over the amount that's been treated as a distribution to your IRA. Of course, you'll need to come up with the dollars from other sources.
Source: Forefield, Inc
Securities offered through ProEquities, Inc., a Registered Broker/Dealer, Member FINRA/SIPC. Investment Advisory Services offered through Tradition Wealth Management, LLC, a Registered Investment Adviser. Tradition Wealth Management, LLC, is independent of ProEquities, Inc.
Tradition Wealth Management, LLC, is independent and not affiliated with the other Tradition companies, the only similarity is in the name.
