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How to achieve 10,000 visitors a day with Site Build It
If you have any desire to build yourself a successful, money-making website based on something you're passionate about, you're in for a treat.
If you're on Allan Gardyne's list, you've most likely heard about Site Build It! But, for one reason or another, maybe you've procrastinated on getting it. For those of you who fall into this category, I believe you'll be highly intrigued and inspired by this article.
Back in 2002 I discovered and purchased SBI through a case study Allan published from an employee named Rupert. That case study is what convinced me personally to get Site Build It! and launched my "career" as an Internet marketer.
Therefore, I know how powerful case studies can be. They provide the real proof we crave before we commit to buying something.
I am writing this article as my way of "paying it forward" as Ken Evoy, founder of SiteSell, likes to say.
First, a bit more on me. My name is Dan Ho. I've been a full time Internet marketer since 2002, but only really started to gain traction in 2003, after I got SBI. In 2005, I was profiled in an ebook about how to make money in niche websites, and, finally, in early 2008, I launched my own private affiliate marketing training service in which I take people by the hand and get them making sales in lifetime income programs. (Some of our members use Site Build It! too).
I also became a Site Build It! Certified Webmaster, and remained so for several years. So, I think it's fair to say I know a thing or two about SBI after all of these years.
I'm still asked by some people every now and then if I would still recommend it to someone just starting out today.
The answer is an unequivocal yes! And that's exactly what this article is all about.
I met a gentleman named Bruce Monnier who lived near me. Bruce had a long history as an entrepreneur and I considered him to be very analytical minded. Even though Bruce is significantly older than I am (sorry, Bruce, it's true!) and came from an old school bricks-and-mortar business background, he was very open-minded to embracing business on the Internet.
Bruce has several children, and one of them in particular, who goes by the moniker Rays Lite, had a lot of experience in the sunglasses industry.
I told Bruce about Site Build It! and said, "This is the tool you need to get. It provides the full range of capabilities you'll need to build up your Internet presence." When he told me about their intended niche, celebrities and their sunglasses, I knew immediately it was a hot one.
Celebrities + Sunglasses + Affiliate Programs = Winner
Let's face it, who doesn't like gawking at celebrities? Even if we can't stand them, we love to hate them. When we love them, we really love them. And who doesn't like shades? Sunglasses can even make nerds look cool, for crying out loud. Here's how the equation looks for those who are mathematically inclined: Celebrities + Sunglasses + Affiliate Programs = Winner. This isn't rocket science, as you can see.
Regarding the site, I advised Bruce along the way, but the credit for ultimately creating this smashingly successful web site, www.celebrity-sunglasses-finder.com because of how unique a site it is.
You'll notice that Britney Spears' official website is the first listed, sending thousands of free visitors!
How long does it take to get a site like this off the ground? Not as long as you think.
Here are some stats on it:
The domain name was created on August 14th, 2007. After domain registration, Bruce and Rays Lite decided to hibernate not for the winter, but UNTIL the winter. The site was officially launched on Nov 1st, 2007.
For the first several months, Bruce and Rays Lite plugged away, and as happens with many SBI sites, results were not immediately forthcoming.
This period of hard work and little to no results is the time frame that I like to fancy is required to pay homage to the Internet marketing gods. These fickle deities humor themselves by weeding out the people who want success badly enough from those who don't.
After Bruce and Rays Lite paid their homage, the site gained traction - boy did it ever. Traffic started as a trickle at first and then became a torrent as the floodgates were thrown wide open.
Here are the February, 2009, traffic stats:
Celebrity Sunglasses Finder now receives about 10,000 unique visitors a day and sells enough sunglasses to fund Ray's outrageous lifestyle.
Rays Lite, by the way, is the quirky persona who is an expert on all things sunglasses. He perpetually wears his favorite sunglasses (yes, even at night like the Corey Hart song says, and even to bed) and is usually spotted wearing a baseball cap, typically scrawled with inscrutable Asian characters.
On www.celebrity-sunglasses-finder.com you not only get Ray's industry insider expertise on "What's Now and What's Not" but also some humorous videos of his lifestyle, in a segment dubbed "Ray's Life".
Celebrity Sunglasses Finder receives visitors from more than 150 countries and has become the authority on what shades your favorite celebrity is wearing. Manufacturers of major sunglass brands began to take note and now regularly contact Bruce and Rays Lite to ply them with valuable unreleased photos of celebrities donning their favorite sunglasses, which further enhances their authority status.
Bruce has also been able to negotiate special increases in commissions from select vendors in addition to customized discount codes, only for visitors of celebrity-sunglasses-finder.com. (Hint: buy a pair from them yourself if you like sunglasses and save yourself some money!)
It's almost hard to believe that by using a tool that costs only $299 a year (Site Build It!), one can achieve such industry domination in one year.
Find your passion, be decisive, follow through consistently, and there's no telling where your passion will lead you. You might just have some fun and make some serious profits along the way, too!
Learn more about Site Built It here
UPDATE, June 2009:
The site now receives about 14,000 to 15,000 visitors a day and is selling even MORE sunglasses.
EDITOR'S NOTE: SiteSell Education's course Building a Successful Business Using the Internet is taught in more than 30 universities and colleges around the world. It has been a huge success.
Learn how Site Build It can help you build a successful online business.
[UPDATE, 2013: SiteSell, the creator of SBI, has launched a WordPress Plugin called bizXpress, which provides you with all the brainstorming, research, keyword tools, comprehensive training, and support you would normally get with SBI, PLUS the ease and simplicity of the hugely popular WordPress system. BizXpress is now my No.1 recommendation for affiliates. Here's my bizXpress review.]
Comments (49)
This is a nice article but it didnt really say how SBI helped making the sunglasses website such a great success.
Can you please elaborate.
[I've added a short video which gives more info. As well as being a package of site building and site marketing tools, SBI is an education system which teaches people how to build an online business. There's also a hugely popular private forum where SBI users share tips and help each other. If you click on the "Related Articles" links, you'll find two older, much more detailed case studies of SBI. Allan.]
Two things concern me, though. The title of the article is misleading as the article itself describes Rays Lite's site and SBI but doesn't explain how he used SBI to get to 10,000 visitors a day nor how someone else could do the same. Secondly, Rays Lite's site relies heavily on pictures of celebrities, in fact it couldn't exist without them. Yet all these photos are uncredited and listed as 'source unknown.' That means that the site hasn't sought permission to use them and is therefore infringing the copyright of the photographer or rights owner. Seems a little odd, not to mention ethically questionable, celebrating a site which unfairly uses other people's original work without permission to make money.
Thanks for the encouragement.
Yes, perhaps the How To Achieve 10,000 visitors a day With Site Build It! may seem "misleading" to some people.
However, I don't view it that way. The article is pretty short, not a step by step type case study that was documented through the entire process. The article's primary point was to "intrigue and inspire" and to show that picking a good niche can lead to a tremendous amount of traffic if done right.
Do all niches have the potential to hit 10,000 visitors a day? No. Should that deter you? You'd be crazy if you let it.
I've personally never had a site achieve 10,000 visitors a day, but that's never stopped me from making a great deal of money online.
In the end, the point of the article was to show what some passion, consistency, thought, coupled with a fantastic tool like SBI can achieve.
In your own niche, you may be able to generate a full time income on only 1,000 visitors a day.
This is what newbies like us need. The issue of passion is the brain behind great future successes. I am still digging deep on my passion and will soon find a stream that quench the thirst of millions. I just paid for my SBI and still brainstorming . . . It will not be long and with mentor like Allan Gardyne and others we are confident of a safe landing.
Thank you
Sbi is easy enough for anybody, but professional enough for webmasters. Highly recommended!
Saludos, Michelle
I have an SBI site and whilst it is not doing anything like that, I would like to vouch for the fact that they will show you step by step how to build a site that makes money. As you mentioned, for the first six months you feel as if you're working for nothing! But it does take off. 15 months down the track and I have a useful part-time income that is growing each month.
[You're wise to be cautious. Getting about 10,000 visitors a day with a SBI site is fairly unusual, but it IS possible to earn very useful revenue with a lot less traffic. Thousands of SBI users do. You can read lots more case studies, in many different niches:
I've ghost written articles that have generated decent interest (ranging from 30 views a day to over 2000 over a year on ezine articles). I've been earning pretty well writing as a freelancer (writing is my strength), but somehow am not too sure whether to start in affiliate marketing, and where.
Is this for real? Can someone vouch for it? What should I do?
Firstly, I do love the idea of SBi. 50 + pages of sales copy on their site is quite convincing and I do want to buy it, especially for the training and also because it seems to have some amazing back end features for automation and achieving good rankings on Google.
(Although that seems to be a bit of a blackbox).
Anyway, I've looked at the various site examples but most of them have very basic clunky design. ie they just look homemade!
Yes, I know content is king but your potential customers initial perception of your business is also visual and they make their minds up very quickly! "They just may not hang around to read your content!
NB. Obviously this would depend on the type of business you are running, it might be OK for a hobby site or a $500 a month part time affiliate business but I'm not sure I'd really want to use it for a serious business that makes real money! Not even as just a lead gen site.
For many SBi'ers, I think the basic designs will become a negative moving forward as the rest of the web is updating and using new features such as audio, video, integrated blogs, cleaner crisp designs, web 2.0, high res images etc.
Much of which I do not see at a competent level on Sbi sites or in their sales literature.
Also, those features are becoming the norm. Surfers will begin to expect this and these crisp, media rich multi function websites will make SBi sites look even more outdated and amateur looking.
A similar problem will exist for most XSite Pro type sites too although that looks a little more versatile.
Now, I've heard that you can use dreamweaver to make your own design for an SBi site but that means I need to hire a web designer at substantial cost. ($1000 + per time and on-going maintanence).
I think you mentioned in a different article :-
"But what do you care more about? If the site looks above average, or if the site makes you money?"
To answer that -
1. Even average sites are beginning to look a lot better now.
2. Here is what I care about - I want a good looking up to date business site that meets the expectations of potential customers, increases their value perception of my business, reassures them that there is some one serious behind it and therefore gives me a better chance of making more money, serious money.
I'm not in this for $500 - to $1000 a month as a part time work at home mum.
Another query I have is regarding the traffic and the ranking of these sites.
A high Alexa ranking does not mean you are making much money and it's all about the money, otherwise why do it?
It's all very well having a 10,000 people a day looking at a celebrity sunglasses site but what does that actually equal in dollar income in your pocket?
A site like that will attract a huge number of curiosity seekers and that 10,000 people could actually represent only $300 a month in actual take home commission. Especially as up to 25% of affiliate commissions never get credited. (no-one ever mentions that do they!).
Look, I'm not anti-SBi, please do not take my comments negatively.
In fact, I really really want to use it but I'm just a little frustrated with what I see and I don't want to spend months (often 6 to 12 months) building a site on the SBi platform and then find out that it won't do what I want it to do and am limited to earning $1000 a month.
Thanks for taking the time to read this and apologies for my ranting, any advice welcome!
These objections are questions in disguise so sell me!
[SBI is a lot more than a bunch of tools. It's an education system which teaches you how to succeed online. I suggest you read more SBI case studies in a variety of niches
and talk to successful SBI users and ask them questions
First, I don't know what you mean when you say....
"especially for the training and also because it seems to have some amazing back end features for automation and achieving good rankings on Google.
(Although that seems to be a bit of a blackbox)."
My Comments:
What blackbox features? You mean the global search engines submitter?
There is nothing else automated as far as I know. It's a suite of tools. It doesn't do any of the work for you.
"Anyway, I've looked at the various site examples but most of them have very basic clunky design. ie they just look homemade!
"Yes, I know content is king but your potential customers initial
perception of your business is also visual and they make their minds up very quickly! They just may not hang around to read your content!"
My comments: yes, it's true, a lot of the designs can look basic or clunky to some people. However, like anything in life, you can learn how to use dreamweaver and/or frontpage yourself and create a very unique design.
Celebrity-sunglasses-finder obviously has a VERY unique design and a lot of video work done. That's because they took the time to learn those things.
SBI is compatible with those tools in case you are inclined to learn.
Now having said this, the websites that are using basic SBI design pages still work great, and still make a lot of traffic and sales if you do them right.
This is experience talking, not theory. Take this site: www.herbal-supplements-guide.com
It's been #1 in Google for YEARS for major keyterms like "herbal supplements". It still generates solid traffic 4 years after it was built and still makes a lot of sales.
How do I know? Because I advised the person who built it.
Remember, people use the web to get information.
"NB. Obviously this would depend on the type of business you are running, it might be OK for a hobby site or a $500 a month part time affiliate business but I'm not sure I'd really want to use it for a serious business that makes real money! Not even as just a lead gen site."
My comments: Matt, again, speaking from experience. I built an SBI site using one of the standard "clunky" designs that was responsible for getting one affiliate program I promote to over $10,000 a month.
I'm not sure about you, but I consider that "real business" level, especially considering it's just one affiliate program.
"Also, those features are becoming the norm. Surfers will begin to expect this and these crisp, media rich multi function websites will make SBi sites look even more outdated and amateur looking."
My comment: Again, depends what your niche is. Some markets may respond much better to flashier design, videos, and the whole she-bang. Celebrity Sunglasses Finder is an example. For some others, it doesn't matter.
"A high Alexa ranking does not mean you are making much money and it's all about the money, otherwise why do it?"
My comment: You're right, of course. A high alexa doesn't necessarily translate into higher earnings. But that's got nothing to do with SBI. Picking the niche is YOUR job.
Some niches may get a lot of traffic, and may not make much. Some may get little traffic but make a fortune.
"It's all very well having a 10,000 people a day looking at a celebrity sunglasses site but what does that actually equal in dollar income in your pocket?"
My comments: I am not at liberty to reveal the site's earnings. It was already a privilege of mine to be able to write the article. I do know it's enough so that the owner does not have to work a job. So I highly doubt it's $300 a month.
And from my own experience, I've used SBI to get over $10,000 a month in one program (which is now significantly higher than 10k a month).
"In fact, I really really want to use it but I'm just a little frustrated with what I see and I don't want to spend months (often 6 to 12 months) building a site on the SBi platform and then find out that it won't do what I want it to do and am limited to earning $1000 a month."
My comments: Again, SBI has nothing to do with the niche you choose, and, therefore, has nothing to do with income limits or floors.
By the way, to get to 10k+ a month or 20k+ a month, you have to cross the 1k a month threshold first.
I think there are many people here who would be extremely happy to build up a 1,000 a month income with a tool that costs $299 a year.
My last comment. I shouldn't have to say this, but I was not compensated whatsoever in writing this article. I wrote it more or less as a favor to Allan because he is an incredibly generous person and I wanted to reciprocate some of that generosity.
The SBI link here is his, not mine. I am adding credibility because I am an impartial voice. I do not work for SBI. I was one of their certified webmasters, but am no longer one.
If even one person buys SBI because of this thread and turns their financial life around, it was all worth it.
But I'm hoping SCORES of you do, and not just one. I like to think big. :)
Just remember me when you're famous, that's all I humbly ask.
Thank you very much for a great comprehensive answer. That really is helpful.
I have some more to think about but this sets me on the right track.
I'm going to pay the $300 for the SBi training and then decide whether to use it or go with something else.
Thanks again and best regards
Success with SBI is really what you make of it; I think if people really follow the guide and are willing to learn and do the work, the SBI approach can generate a significant income.
That said, there is no question that SBI is a lot of work and the learning curve is steep for an internet newbie. The important thing is, is that it is doable. It takes a lot of commitment and time, but a reasonably intelligent, motivated person with persistence can make a go of it.
I have learned an incredible amount and I learn more each day as I try to carry out my ideas for the site. I haven't had this much fun in years! The mascot of SBI is the tortoise, who just keeps going forward, one step at a time. I've been a real snail and treated it like a hobby; but that was my choice.
This year I plan to treat it like a business.
P.S. It isn't that hard to spiff up the appearance of a site. True, the basic SBI templates aren't that "cutting edge", but with a $49 template from one of the SBI'ers and a little effort with a graphics program, you can generate a decent looking site. Or for about $200 or $300 you could pay someone to create the header and easily do the rest yourself.
What an inspirational story! The creators of Celebrity Sunglasses Finder have really understood the power of SBI! and implemented what they have learned. I bet the very first thing they thought before building such a successful website was to provide quality content to people. Only that way, the website has been able to stand out from the crowd and offer something unique and special.
Indeed, giving value to the readership would pay off. Now, I am talking about getting free links from authorities, celebrities and top websites. It doesn't get any better than this.
I congratulate the owners of Celebrity Sunglasses Finder and wish them all the best.
Also, I really thank Dan Ho and Allan Gardyne to provide such a high quality article that gives us not only ideas and thoughts, but also inspiration and motivation.
And finally thanks to SBI! for showing interested people how to create a solid business, how to build a website that works!
Hooshmand Moslemi
Thanks again!
Alisa R.
Quite frankly, in 10 yrs work experience designing websites I have never ever found a tool-source-library (all perfectly integrated!) of such amazing power and that concerning its monetary value really "over-deliver in customer service."
Let me explain, think like attending your preferred university from your own home. Imaging getting an "extra-Master of Science degree" online, and learning by doing it.
And best of all, it's Forum, the "university library" with accumulated yrs of many designer's trials & errors at your fingers and mouse, were you gain real life learning experience first hand.
Best of SBI, the Brainstorm tool. Wou! I will need hundred of pages to describe it. Have to try it to believe it. It is your best bet investment.
Listen closely, don't spend too much time criticizing the article or the writer composition. Concentrate on the results. Numbers speak louder than words. At the end, you are evaluated by those only.
Finally, after many struggles I also found my niche. Just beginning to see the stampede of those hot-ready-to-click visitors pouring in to my website. This what SBI teaches you: Persistence, tortoise, focus, continue building. During recession time results matter!
I'm shooting for OVER 10,000 unique visitors a day and see no reason why I won't achieve my goal. Yes, it is a lot of work but what could be more fun than working hard and writing about something that I am PASSIONATE about?
I too, have designed many sites over the years that do not hold a candle to the success of this first SBI site. (Oh yes--There WILL be more!!)
There's a general graph that says the lower priced your product is (AdSense or affiliate or whatever), the more visitors you need to succeed. Conversely, the higher priced your product is, the fewer the "real" targets you need to succeed. SBI is really a master at bringing in those targeted clients.
I do believe that SBI is THE product/course/tool - call it what you like - for a newby who is seeking to build a real online business based on her/his own interest and expertise.
Boy was I wrong. Now that we have started from day one again, we are already seeing increases in traffic. If would have listened then... as the old saying goes. Now many of our pages are ranking in the top 10 and we just now got on the right track.
If someone gets the 10,000 visits a day or not, "There is gold in them their hills" if you just stay focused and don't give up on your dreams.
I just wished my wife and I had found out about SBI many years ago.
My question is I don't have the money to purchase SBI. I have self designed and created my 2 websites, and I am working hard to get traffic to both. Without having SBI, can i still achieve the 10000 a day vistors to my websites? Of course there are many sites out there that are doing this, but asking how they did this would be a secret they would want to share.
So to all of you who have sbi, are you saying that if you did not have sbi you would not have achieved what you have? Would it have taken you double or triple the time, to achieve the same results?
Like all of you i have a passion for what i'm doing, so can you help with ideas, suggestions, comments on how to push my sites further without having sbi.
My first site www.jwgreetings.com which has been going for 1 year now and my 2nd site www.vineofwords.com which has been going for 2 months. Both very different sites. The 1st is product based, and the 2nd is article based which i use adsense and i am looking into adding affiliate products to match the articles I write.
I look forward to your replies.
[There are many different ways of succeeding online. Yes, it's definitely possible to achieve big traffic without owning SBI. I like recommending Site Build It because it's so much more than mere web hosting - it gives people a solid education in many different facets of Internet marketing. The place to ask for ideas on how to improve your sites is in the "Site Reviews" section of our affiliate forum. Ask for a review there. Allan.]
Basically, these people are not like me, a regular guy who knows nothing about building a successful website.
This is where SBI is fantastic. It helps anyone to create a successful website that frees them from a full time job despite their limited knowledge of the online world. With SBI, you will succeed if you follow the system. Even if you try to do it on your own, most likely you will have to pay for hosting anyway if your site is a business. So, why not add a few dollars and pay a hosting company that will really help you achieve success? And SBI is my # 1 choice.
This whole website is devoted to Internet Marketing. I suggest you start with the Beginners Section and work your way through. There's a lot to learn. - Glennys
Building a site is not an easy thing to do if you plan on seriously making money from it. It depends on your goals. I am a fan of SBI! (Site Build It!). They really cater to those who are brand new to website building. Even those who are pros can learn a lot or they can use it if they just want to start a website and need a webhost.
As far as traffic is concerned, it takes time. Usually lots of time but if you have a year or so to wait it's possible to reach the figures shown above.
I'm a satisfied SBI'er with almost 9 months of experience. Our site is growing daily and we're almost up to 1000 visitors a day. can't wait to see where we'll be in a year!
Hello everyone,
i'm tired to think how can i build my coupon site, if you have advice for me.. please let me know. i want to know if my domain name is good?? www.couponproduct.com or i'm must change it to start coupon business??
Thanks your advice
Hi Adelina, CouponProduct does sound a bit strange, but so did "Google" when I first heard it.
A more appropriate place to discuss this would be on our affiliate forum. The link is at the top of the page.
I truly enjoy reading information about SBI because it is such a good company. I have learned a great deal of skills and this information was as educational as it was entertaining.
Some of the names that I chose for my first SBI sites were pretty strange. But when I figured it all out things got much better.
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text:
Cold Case Files: The Boy and the MonsterThe Secret in the Cellar DVD
Sale Price: $19.99
To Order by Phone Call 1-800-933-6249
- Additional Details
- Format: Color, DVD-Video, NTSC
- Rating: Not Rated
- Number of Discs: 1
- Run Time: 50 Minutes
- Region: Region 1
- Aspect Ratio: 1.33:1
- Language: English
- Studio: A&E Home Video
- DVD Release Date: August 2, 1999
A decade-old murder case and a serial sexual offender are brought to justice in this fascinating look at the men and methods that prove virtually no case is unsolvable.
They are the cases that confound investigators and leave victims' families in limbo. Countless criminal investigations go unsolved every year; but with the use of new technology and thanks to the unrelenting work of dedicated professionals, more and more are finally being solved.
COLD CASE FILES provides a look at the cutting edge of crime-solving tactics and techniques. In Milwaukee, a murder victim is found with her hands missing in an attempt to render the body unidentifiable. The investigation leads to a group called the Black Gangster Disciples and turns on the testimony of a 3-year-old boy! Nine years after Beverly Eller is murdered in Georgia, a fingerprint found at the scene finally brings her killer to justice. Finally, a serial sexual offender who posed as a salesman in Texas is finally caught thanks to DNA evidence.
Join INVESTIGATIVE REPORTSTM for remarkable true stories of the men and methods that prove that virtually no crime in unsolvable.

subset: commoncrawl


text:
Gas Pains
Tom grew up in Milwaukee, bartended in Wauwatosa in the '70s and moved here in 1984.
Commentary, observations and musings about the outdoors, life in general and maybe Tosa politics and personalities will be the order of the day. He savors a lively debate as much as terrific cooking.
The Runt of the Litter
It has been an interesting week - and speaking for myself I am eternally grateful for the approaching end of the 24/7 coverage of the royals. The royal wedding, the queen, Lady Diana, the giant crazy hats, Billy and Kate and the wedding gown. Sheesh. For gosh sakes they've been flatmates for years. It's about time that fella made an honest woman of her.
Over the years my pal Braumeister and I have discussed this nonsense of the royal family at length and our conclusion is that we kicked King George and his family out of this country more than 200 years ago for good reason.
Friday Morning Music
More awesome guitar work.
And start your weekend with some sultry vocals from Alison Krauss...
The Garden Chronicles
Less than three weeks ago there was four inches of snow on the ground and it had been raining incessantly. The month of April posted record amounts of precipitation on the the Door Peninsula.
It has finally dried-out sufficiently to begin prepping the garden.
Random Musings and Idle Chit Chat
Just last week we celebrated an important anniversary in America's exploration of outer space. On May 5th, 1961 - Alan Shepard was the first American in space.
NASA Photo
Friday Morning Music
Start your weekend with an awesome cover of a classic Patsy Cline tune by Madeleine Peyroux.
No video just the tune...
The Garden Chronicles
This has singularly been the latest spring arrival in recent memory. The consequence of this is that weather conditions for turkey hunting have been appalling. Snow, rain and high winds. Nevertheless, I shot a gobbler and Lawyer and Sid each killed a jake. Only Braumeister got skunked.
Both Sister and Girlfriend have been taking long walks afield each day - with Sister off-lead. She's been soaking-up the outdoors and learning basic verbal commands. The trouble has been all of the water and mud everywhere results in a couple of very dirty dogs.
A Hot, Dusty, Lonely, Job
Ordinarily if you hear the term afterburner - what might come to mind is a fuel guzzling kick-start to a fighter jet.
Crematoriums also use an afterburner in order to provide a nice clean EPA-approved burn.
Friday Morning Music
It's the start of the weekend.
And no better way to begin than with some Ray LaMontagne...
Apocalypse Interruptus
I'm still here.
I even pinched myself to make sure I wasn't dreaming.
Chick Magnet
I have dog duty tonight while Jill has some welcome RR with her girlfriends.
I got to stay home with Girlfriend and Sister.
Walk in the Woods
How many of you remember the fight to save the County Grounds?
How many of you recall when the state purchased land from Milwaukee County to preserve and protect it from development?
If Only The Dead Could Talk
Today is Memorial Day.
The day we honor and remember those who have given the last full measure of devotion by sacrificing their lives in service to our country.


text:
Levels & benefits
How is your membership level determined?
Your level is determined by the number of Level Miles you have earned or the number of qualifying flights you have made:
You can earn Level Miles on most flights taken with AIR FRANCE, KLM or any other SkyTeam airline. In general, every mile you fly earns you one Flying Blue Mile.
A qualifying flight is a one-way flight made with a SkyTeam airline, which enables you to earn Level Miles.
Required thresholds per membership level, per calendar year
|Membership level
|Required number of
Level Miles
|Required number of qualifying flights
|entry level
|entry level
|25,000 Level Miles
(30,000 in France and Monaco)
|15 qualifying flights
(Elite Plus)
|40,000 Level Miles
(60,000 in France and Monaco)
|30 qualifying flights
(Elite Plus)
|70,000 Level Miles
(90,000 in France and Monaco)
|60 qualifying flights
Compare the benefits of all membership levels
Discover how many Miles you earn on a specific flight
How to upgrade your membership level
Every level has a threshold: a certain number of Level Miles or qualifying flights a member needs to reach in order to upgrade to the next level. The table above shows the thresholds for each level. As soon as you reach the next level`s threshold of Level Miles orqualifying flights, you`ll be upgraded and get to enjoy the new benefits straightaway!
How to maintain your membership level
On 31 December of each year, your Level Miles and qualifying flights balance from the previous 12 months is checked. This is called the Annual Level Check. To keep your membership level, you need to have reached either of these two thresholds:
- minimum number of Level Miles specified for one calendar year, or
- required number of qualifying flights specified for one calendar year
If you have not reached either threshold, your membership level will be downgraded.
Good to know
For Ivory members, the balance of Level Miles and qualifying flights is reset to zero on 1 January of each year. Elite members enjoy the benefit of Carry over Level Miles, which allows them to carry all Level Miles earned above the membership threshold over to the following year.
View your Miles balance


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Curmudgeon's Corner
cur-mud-geon: anyone who hates hypocrisy and pretense and has the temerity to say so; anyone with the habit of pointing out unpleasant facts in an engaging and humorous manner
Public Sector Employee Compensation
Public sector employee pay and benefit packages are front-of-mind these days as virtually all governmental bodies cope with the economy and the accompanying tax revenue shortfalls that so often appear in these situations. The Washington Examiner published a chart today depicting the changes in federal worker's compensation from 2005 to 2010.
Tax More or Spend Less?
Do we tax too little or do we spend too much?
Hank Has Left The Building
Hank Raymonds passed away today at the age of 86 after a lengthy battle with cancer. He was, I'm sure, involved with Marquette basketball right up to the time that he couldn't physically be involved.
Deck the Halls
If you have animals or simply enjoy them, this You Tube feature is worth watching. Click here.
Hostage Takers?
I have tired greatly of the mainstream media making every possible effort to convince us that the Republicans wanted to 'cut' taxes and cause all kinds of bad things to happen to deserving people; they lost sight of the fact that the Democrats actually wanted to raise taxes since the change they espoused would've removed the tax reductions in place for nearly a decade.
Is WikiLeaks a Big Deal?
The WikiLeaks case has made all the headlines for the past week and promises to continue to be heard and read about for weeks to come. The whole thing has raised a lot of questions as we view the nature of the information being revealed, and as we recognize from where this information came originally.
Political Paybacks 101
Sen. Harry Reid (D-NV) received very large donations from the casino operators and casino employees in Las Vegas as he fought to retain his seat in the U. S. Senate. If anyone thought this was done simply out of the goodness of their hearts, we have the answer to clarify that little detail.
Stay Tuned for Weather-mania...
Weather-mania is once again alive and well in our area in contemplation of the major system pointed in our general direction.
ObamaCare Takes a Hit
A Federal judge today made his decision about the requirement in PPACA (ObamaCare) that stipulates we citizens either buy coverage or face a fine for not having purchased coverage. He found that clause to be unconstitutional. This language was inserted so that insurers wouldn't be hit with people buying coverage after being diagnosed with a disease. You may've heard this equated to someone deciding to buy homeowners coverage after discovering the house was on fire. Such activities would make the cost of ObamaCare unsustainable from an insurance company perspective. The Federal judge found it was wrong to penalize people for not engaging in commerce.
Here We Go Again
Sen. Harry Reid (D-NV) is threatening to hold the Senate in session after the Christmas holidays and until the very last day it can convene (January 4th) in order to pass several pieces of legislation. Whether that is just a threat or is actually what he'll do remains to be seen; he has demonstrated the ability, from his old boxing days, to duck and weave with the best of them.
Political Arrogance
Political arrogance is on display in both Washington, D.C. and in Madison, WI. The lame duck sessions in both cities have helped, once again, to demonstrate that we have problems in our political world.
Have You Ever Dreaded Seeing a Dentist?
I have had a history of not liking to see my dentist; if you are anything like me, you know how dreaded one of those visits can be. By postponing necessary visits, I just made the later visit the more harrowing and the more expensive because the issues had grown while I delayed. My issues stemmed from a few less than good experiences as a kid when those old belt-driven drills spun at about 400RPM and when the pain deadening shot was almost as bad as the drilling.
Through the Eyes of a Child
Christmas is fast approaching. I attended the children's Christmas program at our church yesterday afternoon and was reminded of the great joy and anticipation those youngsters have as the big day approaches.
Joy and Sadness; Sadness and Joy...
Joy and sadness. Sadness and joy. Those mixed themes continue to course through my mind as this most joyous of holidays approaches.
Joining the Military Appears Quite Difficult
Could you pass the knowledge-based entrance exam for the military? Recent studies show that between 16% and 20% of the people who took this test in Wisconsin failed the test.
What If?
What if the Christmas Story is true?
Cal Thomas wrote under that banner in today's Washington Examiner. If you'd like to read that story, click here.
Rein-In The Regulators
We are governed in a stealthy manner by an 'alphabet soup' of government agencies, bureaus, commissions and departments. These units of government have rule-making powers and use those powers to regulate off the radar screen in large part. For a lengthy list, click here.
Intellectual Dishonesty
This is the definition for intellectual dishonesty found on Wikipedia:
What Cuts Would You Make?
Trickle down from state to counties, cities, villages, towns and schools could be significant given the economic situation that exists.
Energy Costs Increasing...
The headline in the JournalSentinel yesterday told us "Business energy bills will increase by 13%". Reading further, we learned that residential bills were ONLY going to increase by 5%. This is caused, according to that story, by the ending of credits from the sale of the Point Beach nuclear facility.
Village Buzz - December 31st...
To Log or Not to Log?


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5/5 Adjustable Rate Mortgage (ARM)
Keep in Mind:
Have these on-hand when you apply: your previous two Federal
Income Tax Returns, W2, current pay stub, and banking statements.
EDITOR'S NOTE: This article was originally published in the April 2010 issue of Kiplinger's Retirement Report.
Buyers are on a blind date with your home, and they want love at first sight. So make it pretty. Steve Vieux got rid of heaps of stuff -- including things belonging to his brother, who had once been a roommate -- and spent $2,500 to have his house cleaned, the interior repainted, the exterior power-washed, and his tiny yard spruced up.
If time and money allow, replace lighting and plumbing fixtures, cabinetry hardware, and maybe those harvest-gold appliances. The new stuff needn't be top-of-the-line, just clean and current. Agent Janis Morgan advises her clients in San Antonio to add granite countertops to make their kitchens "pop".
Agent Bob Bower of California's Silicon Valley urges sellers to pay for home and termite inspections (about $650 to $750 for both) and fix as much of the little stuff as they can before putting a house on the market. Then he presents the reports and a "work completed" worksheet to buyers, a strategy that he says inspires higher offers.
With the basics taken care of, it's time for staging -- window dressing your home to increase its appeal. Staged homes sell more quickly and at the top of their price range compared with similar homes that aren't staged. Stagers declutter if you haven't, rearrange furniture to improve traffic flow and create a sense of spaciousness, and make your decor less reflective of your personal tastes. If your home is vacant, they bring in furniture so buyers can imagine themselves living there. Home sellers spend an average of $1,800 to stage a home, but the cost can be $5,000 or more. Agents may provide staging as part of their fee.
One bit of good news for sellers: Agents say contractors, including stagers, are anxious for the work. Bower suggests asking for two or three bids and playing them one against the other.
When you're ready to show, "pretend you're giving a party," says Morgan. Hide the cat box, don't leave the bed unmade or laundry on the floor, and open the curtains and leave all the lights on.
EDITOR'S NOTE: This article was originally published in the July 2010 issue of Kiplinger's Retirement Report.
Insurance for replacement value of your home's structure is listed under "dwelling limit," or Coverage A, on your policy. Structures not physically attached (such as garages, decks and fences) are listed under Coverage B and are usually insured for about 10% of the dwelling limit.
You need coverage for full replacement cost, not actual value, of your home and possessions. A building contractor can estimate the cost to rebuild (typically from $180 to $350 per square foot). Multiply the total square footage of your home (not just living space) by the estimated construction cost. Add at least 15% to 20% to account for future price increases. Or use the calculator at AccuCoverage.com ($7.95 per report).
Policies often include a limit of $300,000, but you'd be better off with coverage equal to one to two times your net worth. Purchase an umbrella policy for extra protection.
Make sure you have enough for rent and other expenses after a total loss (Coverage D, also known as additional living expense or loss-of-use coverage). Insurers usually include coverage equal to 20% of your dwelling limit, which expires within 12 to 24 months, even if you haven't hit the max. You need two years' worth of coverage.
Personal possessions (Coverage C) are usually set at 50% to 75% of the dwelling limit. Use the Insurance Information Institute's free online tool at www.knowyourstuff.org to take an inventory and store it (along with photos) online. You should also print the report and store it in a fireproof safe or bank safe-deposit box.
Policies usually set limits of $1,000 to $2,500 per category, such as jewelry, silverware, guns, fine art, musical instruments and wine. You can buy riders to increase coverage. Even if your policy's limit is higher -- say, $5,000 -- it may have a lower limit (perhaps $2,000) for any individual item.
Standard policies typically cover wind damage from hurricanes and windstorms, but not damage from sewer backups, floods or earthquakes.
EDITOR'S NOTE: This article was originally published in the April 2010 issue of Kiplinger's Retirement Report.
You hope to sell fast for top dollar. Reality check: You'll probably have to compromise -- with a price that not only satisfies you but also attracts the right buyers and won't exceed the market value determined by your buyer's appraiser.
Agents don't pull a list price out of thin air. To begin homing in on the best price, you should expect that your agent will look at recent sales of homes similar to yours, current listings and pending sales.
For example, agent Patricia Vucich says that she usually looks for at least three sales of comparable houses that have closed within the past 90 days. If the pool of sales is small, she checks the county tax records for sales that weren't reported on the regional multiple listing service, such as ones in which a neighbor sold to a neighbor.
If short sales or foreclosures are prevalent in your market, your agent may also factor in their prices. However, given that these houses are often sold in poor condition, their sale prices may not have much of an effect on the pricing of your home, if it's in good shape.
Based on their research, agents will develop a price range for your home. Whether you start at the top, midpoint or bottom of the range is a decision that depends on how quickly you need to sell.
If you start a little lower than your competition, you'll generate traffic, and you can always say no to unacceptable offers. But don't start at the very bottom. Instead, build in room for negotiation so you can come down in price, if needed. "Buyers like to feel as if they have won," says Janis Morgan, the San Antonio agent. Padding the price a bit is especially important if you haven't already reduced the price for deficiencies -- say, an outdated kitchen or a poor location.
If you start too high, you may have few nibbles. Says Kris Berg, an agent in San Diego: "Today's buyers want either the cheapest house on the block, even if it's falling-down ugly, or the Taj Mahal with everything they couldn't buy back in 2005, and for 20% less." Can you charge more for a cream puff? Yes, but not as much as you think.
If you're selling an entry-level home that will attract first-time buyers, you can anticipate that they will want help with their closing costs, which usually amount to 3% to 6% of the purchase price. So you may want to price it a bit higher to start. Keep in mind, though, that a buyer using conforming financing (backed by Freddie Mac or Fannie Mae) or a Federal Housing Administration loan can apply the home buyer's tax credit toward closing costs.
Steve Vieux imagined listing his Silver Spring house for $300,000, but the analysis provided by his agent suggested $240,000. Once his agent realized that Vieux's buyer would probably be a first-timer, they bumped up the list price to $248,500, then agreed to pay the buyer's closing costs of $7,455.
EDITOR'S NOTE: This article was originally published in the Sept. 2010 issue of Kiplinger's Retirement Report.
If you are in the market for a second home, congratulations! Not only can you look forward to having a place to relax, you also can garner some tax benefits for that place in the mountains or at the beach. You can use several tax breaks:
Mortgage interest. If you use the place as a second home -- rather than renting it out as a business property -- interest on the mortgage is deductible just as interest on the mortgage on your first home is. You can write off 100% of the interest you pay on up to $1.1 million of debt secured by your first and second homes and used to acquire or improve the properties. (That's a total of $1.1 million of debt, not $1.1 million on each home.) The rules that apply if you rent the place out are discussed later. Property taxes. You can deduct property taxes on your second home, too. In fact, unlike the mortgage interest rule, you can deduct property taxes paid on any number of homes you own.
Lots of second-home buyers rent their property part of the year to get others to help pay the bills. Very different tax rules apply depending on the breakdown between personal and rental use. If you rent the place out for 14 or fewer days during the year, you can pocket the cash tax-free. Even if you're charging $10,000 a week, the IRS doesn't want to hear about it. The house is considered a personal residence, so you deduct mortgage interest and property taxes just as you do for your principal home.
Rent for more than 14 days, though, and you must report all rental income. You also get to deduct rental expenses, and that gets complicated because you need to allocate costs between the time the property is used for personal purposes and the time it is rented.
If you and your family use a beach house for 30 days during the year and it's rented for 120 days, 80% (120 divided by 150) of your mortgage interest and property taxes, insurance premiums, utilities and other costs would be rental expenses. The entire amount you pay a property manager would be deductible, too. And you could claim depreciation deductions based on 80% of the value of the house. If a house is worth $200,000 (not counting the value of the land) and you're depreciating 80%, a full year's depreciation deduction would be $5,800. You can always deduct expenses up to the level of rental income you report. But what if costs exceed what you take in? Whether a loss can shelter other income depends on two things: how much you use the property yourself and how high your income is.
If you use the place more than 14 days, or more than 10% of the number of days it is rented -- whichever is more -- it is considered a personal residence and the loss can't be deducted. (But because it is a personal residence, the interest that doesn't count as a rental expense -- 20% in our example -- can be deducted as a personal expense.)
If you limit personal use to 14 days or 10%, the vacation home is considered a business and up to $25,000 in losses might be deductible each year. That's why lots of vacation homeowners hold down leisure use and spend lots of time "maintaining" the property. Fix-up days don't count as personal use. The tax savings from the loss (up to $7,000 a year if you're in the 28% tax bracket) help pay for the vacation home. Unfortunately, holding down personal use means forfeiting the write-off for the portion of mortgage interest that fails to qualify as either a rental or personal-residence expense.
We say such losses might be deductible because real estate losses are considered "passive losses" by the tax law. And, passive losses are generally not deductible. But, there's an exception that might protect you. If your adjusted gross income (AGI) is less than $100,000, up to $25,000 of such losses can be deducted each year to offset income such as your salary. (AGI is basically income before subtracting your exemptions and deductions.) As income rises between $100,000 and $150,000, however, that $25,000 allowance disappears. Passive losses you can't deduct can be stored up and used to offset taxable profit when you ultimately sell the vacation house.
Tax-free profit. Although the rule that allows home owners to take up to $500,000 of profit tax-free applies only to your principal residence, there is a way to extend the break to your second home: make it your principal residence before you sell. That's not as wacky as it might sound. Nor is it as lucrative as it used to be.
Some retirees, for example, are selling the big family home and moving full time into what had been their vacation home. Before 2009, this had a very special tax appeal. Once you live in that home for two years, up to $500,000 of profit could be tax free – including appreciation in value during the years it was your second home. (Any profit attributable to depreciation while you rented the place, though, would be taxable. Depreciation reduces your tax basis in the property and therefore increases profit dollar for dollar.)
Congress cracked down on this break for taxpayers who covert a second home to a principal residence after 2008. A portion of the gain on a subsequent sale of the home is ineligible for the home-sale exclusion of up to $500,000, even if the seller meets the two-year ownership and use tests. The portion of the profit that's subject to tax is based on the ratio of the time after 2008 when the house was a second home or a rental unit to the total time you owned it. This can still be a great deal if you've owned your second home for many years before the law changed.
Let's say you have owned a vacation home for 18 years and make it your main residence in 2011. Two years later, you sell the place. Since the two years after 2008 the place was your second home (2009 and 2010) is 10% of the 20 years you owned the home, only 10% of the gain is taxed. The rest qualifies for the exclusion of up to $500,000.
EDITOR'S NOTE: This article was originally published in the Aug. 2010 issue of Kiplinger's Retirement Report.
Flood insurance doesn't grab the headlines like, say, health-care reform does. Yet it's got all the elements of a front-burner issue. Inland homeowners caught by surprise by the recent deluges in Tennessee and New England are angry that they weren't sold flood insurance, while communities across the country are up in arms as new flood maps sweep them into insurance-required zones.
Meanwhile, questions swirl about the future solvency of the federal government-run insurance program, which covers 5.5 million properties. Intended to be supported by policy premiums, it now owes Uncle Sam almost $19 billion. And although Washington politicians debate badly needed long-term reforms, the program limps along on successive rounds of short-term funding. In the past year, the National Flood Insurance Program has lapsed (meaning no policies could be sold) three times. The most recent interruption came in June, just as hurricane season opened with forecasters calling for three to seven major storms this year.
Don't be put off by all the noise. This is a great time to consider flood insurance. Flooding isn't covered by most homeowners policies, and insurance may be more affordable than you think -- especially given the high cost of fixing flood damage. You must carry flood insurance if you have a federally backed mortgage and your home is in a high-risk zone -- defined as having a 26% chance of flooding within a 30-year period, or 1% annually. Flood insurance is optional if you don't have a mortgage or you live in a less risky area, but it's an option you should consider because 25% of all flood claims are made in areas of low to moderate risk.
Even though the flood-insurance program is run by the feds, you purchase a policy through an insurance agent at one of some 90 companies nationwide, including Allstate, State Farm and USAA. Your community must participate in the NFIP (more than 20,000 do). You don't have to comparison-shop because the rates are set by Uncle Sam (see estimated premiums and find an agent at www.floodsmart.gov).
A home that's in a low-risk zone may qualify for a preferred rate, with annual premiums ranging from $119 to $395 to protect both the home and its contents, depending on how much coverage you buy. Standard rates in a high-risk area start at $477 and go up to $2,633 a year. Coverage for basements is limited. You can insure your home for up to $250,000 and its contents for up to $100,000; renters can buy contents-only coverage. If you want insurance beyond what the NFIP provides, you must buy "excess" coverage from a private insurer, such as Fireman's Fund or Chubb.
Don't be upset if an updated flood map draws you into a higher-risk zone. A bigger worry is that an outdated map might conceal your true risk. (You can see whether your map is scheduled for review or has recently been updated at www.floodsmart.gov.) Buy a policy before the new map becomes effective, which can take a few weeks to several months, and you'll lock in the lower rates associated with the lower-risk zone. Don't wait until you hear raindrops on the roof: Policies take 30 days to go into effect.
Hurricane Earl that is battering the East Coast is a good reminder to us all that it pays to be prepared for disasters of all kinds. Here are several steps you should take to make sure you and your finances can withstand an emergency.
Fund your emergency fund. Set aside enough cash to cover several months of expenses' and pay for any insurance gaps or deductibles. If a natural disaster strikes -- or if you lose a job or face any other challenges -- this fund will tide you over until you can get back on your feet. Avoid locking the money up in certificates of deposit or stocks. Your emergency money should be there when you need it. See How Much Cash You Really Need for help figuring out how much to set aside.
Check your homeowners and renters insurance. Although standard homeowners insurance will protect you if a major storm hits, it will not provide flood or earthquake protection. Homeowners and renters can buy added coverage for these disasters. Also make sure you have an inventory of your possessions to make the claims process easier.
Buy life insurance. Generally, you should consider enough life insurance to replace your income -- short-term and long-term -- if you die. See How Much Life Insurance Do You Need? for help figuring out how much coverage to get.
Purchase disability insurance. Most people get some level of disability coverage through their jobs, but these policies usually cover only 60% of your salary if you get sick or injured and are unable to work. You can increase your coverage by buying your own policy. See Why You Need Disability Insurance.
Gather important documents. A will provides the ultimate insurance, by outlining how your finances will be handled after your death (see Six Steps to a Good Will). You also should have a living will to explain your wishes about life-sustaining medical care if you become terminally ill and are unable to speak for yourself. Other documents you might need to claim benefits and ensure your financial security include:
-- Birth certificates-- Citizenship and adoption papers-- Marriage license and divorce papers-- Social security card-- Insurance policies (You must have the original life insurance policy to claim benefits.)-- Medical records and information-- Deeds to property, automobile titles, mortgage papers, leases-- Military records-- Investment records
Keep the documents listed above in a fire-resistant home safe or lock box. However, do not keep wills in a safe deposit box. It can be difficult for family members to gain access and might require court supervision to open. Keep a copy in your home safe or at your attorney's office. The original usually is kept with the county registrar of wills.
Create a portable survival kit. There may come a time when you have to leave your home quickly. Creating a portable survival kit with food, water and supplies to last at least three days will help hold you over until your situation stabilizes or help arrives. You can pack your own, or you can buy a basic, pre-made kit for a family of four at The Red Cross Shop for $89.
Stock up. FEMA recommends that you keep enough food and water in your home to sustain your family at least two weeks. Buy canned goods, dry mixes and other foods that store well. (Don't forget a manual can opener and a camping stove, in case you lose electricity.) To build your stash, purchase a few extra items each time you go to the store, or buy a little more when favorites go on sale.
5/5 ARMs: Offers available for purchases and refinances. The initial rate can change every 5 years by no more than 2 percentage points up or down, never to exceed 5 percentage points above the initial rate. When the rate adjusts, your new rate will be the then current index plus margin, which is currently set to 2.00 for the new products, as long as it does not exceed the 2% adjustment cap.
5/5 Adjustable Rate Mortgage (ARM) Closing Cost Promotion: Offer available for purchases and external refinances only. PenFed will pay your closing costs up to $10,000 including but not limited to: appraisal fee, tax service fee, CLO access fee, title fees, transfer tax fees, credit report fee, flood cert fee, recording fee, survey if required and work verification fee. This does not include: escrow interest, homeowner's insurance or owner's title insurance, the cost for a structural engineering or similar report, should the appraiser request one, or points to buy a rate down or applied to a loan. Points are the responsibility of the borrower and not covered in promotions. Builder or seller credits may reduce the amount of the closing cost credits. This promotion is not available for investment properties. Other restrictions also apply. Contact your PenFed mortgage consultant for any applicable additional restrictions and details about your loan. You must use one of our preferred title companies to get the closing cost credits. For New York properties, borrowers are required to pay title insurance premiums and may use any title company to obtain the closing cost credit. Offer is only available for owner occupied primary residence and second homes. Refinance of an existing PenFed mortgage is not eligible for the closing cost credit and borrowers will be required to pay all closing costs. For Limited Cash Out refinances, limitations on the amount of cash back at closing may require that all or a portion of the credits be applied toward principle reduction. Note the reimbursement of closing costs below.
Reimbursement of Closing Costs: If you pay this loan off and close the account earlier than the 36-month anniversary date of the loan closing, you will be obligated to pay PenFed a prorated amount of the closing cost credit received from PenFed. This amount will be added to any loan payoff amount requested prior to the 36 month anniversary date. The reimbursement amount will be prorated in equal amounts on a monthly basis. Closing costs credits to be reimbursed include all closing costs paid by PenFed except those paid to affiliated title companies. See contract addendum for details.
Investment properties not eligible for offer.
¹For a purchase transaction, the rate cannot be locked until PenFed receives a ratified sales contract executed by all required parties.
²5/5 ARM Rate Reset Option: During the origination process for a 5/5 ARM, PenFed mortgage borrowers have the option of selecting the Rate Reset Option. The initial rate is 0.25% higher than the current 5/5 ARM rate. You may reset your rate five (5) times during the life of your loan. The initial reset may be elected one (1) calendar year after the date your loan closed (purchase) or the date the loan funded (refinance). When the rate reset feature is selected, the new rate will be calculated by selecting the lesser of (i) adding 2.25% to the Current Index (weekly average yield on US Treasury securities adjusted to a constant maturity of five years, as made available by the Federal Reserve Board) or (ii) adding 0.25% to PenFed's current rate offering for its 5/5 adjustable rate mortgage loan product. The new rate will be rounded to the nearest 0.125%. When exercising the rate reset feature, the new interest rate will be fixed for an additional five (5) year period. In order to exercise the rate reset option, the loan must be in good standing with no rate resets within the prior twelve (12) months.
All Mortgage Programs: The application of points will be determined by the loan-to- value (LTV) ratio combined with certain representative credit scores. Points also apply to certain cash-out refinance transactions, certain condominium transactions, and some transactions with subordinate financing. Origination fees may apply to certain programs. The origination fee may be waived by adding a 0.25% to the selected rate.
The applicant is responsible for the following fees and costs at the time of closing. Origination fee, appraisal fee, tax service fee, CLO access fee, title fees, transfer tax fees, credit report fee, flood cert fee, recording fee, survey if required and work verification fee, escrow reserves and interest due until first payment, other cost may be included due to program specific circumstances. This is not intended to be an all-inclusive list.
Escrows will only be waived if LTV is 80% or less in CA, OR, DC, VT & NY; 75% in all other states.
Borrowers are required to have sufficient reserve assets available to cover 6 months full payments including principal, interest, homeowner's insurance, property taxes and homeowner associated dues and/or mortgage insurance, if applicable. For non-primary residences, we require 12 months of reserve assets.
If a loan is withdrawn, the applicant may not reapply for at least 90 days from the date the application was withdrawn. All above disclosures apply to non-Veteran's Administration (VA) loans. VA loans have different guidelines and eligibility requirements.
Conforming Mortgages: For loan amounts from $25,000 to $417,000. The maximum combined loan- to-value (CLTV) is 95%; 80% LTV and above are subject to private mortgage insurance (PMI). The maximum LTV and CLTV for condominiums is 80%.
Jumbo Mortgages: For loan amounts above $417,000 to $750,000. The maximum loan-to-value (LTV) is 80% and the maximum combined loan-to-value (CLTV) is 90%. The maximum LTV and CLTV for condominiums is 80%.
Super Jumbo Mortgages: For loan amounts above $750,000. 5/5 ARMs up to $4 million and Fixed Loans up to $2 million. The maximum loan-to-value (LTV) and combined loan-to-value (CLTV) is 80%. In DC, MD and VA only, the maximum LTV and CLTV for condominiums as a primary residence is 80%. The LTV and CLTV in all other states for condominiums is 75%. The LTV and CLTV for second home condominiums is 70% in all states.
All above disclosures apply to non-Veteran's Administration (VA) loans. VA loans have different guidelines and eligibility requirements.
All rates and offers are as of April 2014 and are subject to change without notice. Restrictions apply to existing PenFed mortgage borrowers. Other restrictions may apply. Contact your PenFed mortgage consultant for any applicable additional restrictions and details about your loan. To receive any advertised product you must become a member of PenFed by opening a share (savings) account. Federally insured by the NCUA. We do business in accordance with the Federal Fair Housing Law and the Equal Credit Opportunity Act.
This credit union is federally insured by the National Credit Union Administration. Rates are current as of April 2014 unless otherwise noted and are subject to change. APY = Annual Percentage Yield APR = Annual Percentage Rate©2014 Pentagon Federal Credit Union
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Prudential PenFed Realty is a wholly owned subsidiary of PenFed.
If you are ready to open a new IRA account, please print, complete, and return the IRA application:
IRA Application Booklet
If you have a PenFed IRA and would like to open an IRA certificate, please call a member service representative at 1-800-247-5626.
If you are ready to open a new Coverdell Education Savings Account (ESA), please print, complete, and return the following application:
Coverdell ESA Application
If you have a Coverdell ESA with PenFed and would like to open an ESA Certificate, please call a member service representative at 1-800-247-5626.
Join Now & Start Enjoying Member Benefits
To join, you need only fulfill two requirements: