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Good morning, Memphis! You are back on the Real Estate Mortgage Shoppe program with me Jo Garner, Mortgage Loan Officer with Evolve Bank & Trust. Our co-hosts today are Don and Holly Swogger owner of HomeVestors here in Memphis. Holley is also the president of our local Memphis Investors Group.
Don and Holly: Its great to have you back around the coffee table with us today. Tell our audience a little about yourself and what you do.
Our topic today is “Building Your Real Estate Portfolio–Choosing Your Support Team” We are ready to talk with you about WHATEVER you want to discuss concerning your real estate property, your mortgage, your credit–call us on the air at (901) 535-WREC. That number again is (901) 535-9732.
The big news of course is Hurricane Sandy shutting down our financial market for two days this week -amongst other things. That’s the first time we have had an unplanned shutdown of the stock exchange like that since nine eleven attacks.
Mortgage rates had been going up a little, down a little and back up again but they receded with the storm this week with the 30 year fixed rate mortgage dropping to 3.57 percent from 3.61 percent. The 15-year fixed-rate mortgage fell to 2.89 percent from 2.9 percent. The benchmark 5/1 adjustable-rate mortgage fell to 2.72 percent from 2.73 percent. (The 5-1 ARM rate is fixed for the first 5 years and then begins to adjust every year thereafter)
New construction has increased 11% today from last year. Builders are still concerned that lending regulations are too tight for homebuyers. Credit restrictions have made it tough on builders to buy land too. So we’re no where close to the boom days like 2006, but the numbers are looking better.
Fannie Mae, the largest mortgage buyer in the nation, is encouraging lenders to shorten the time it takes to complete the short sale process. A short sale happens when a homeowner owes more on the home than the price they can get selling the property. When the mortgage company holding the loan on that property agrees to allow the homeowner to sell for less than what’s owed on the is outstanding mortgage, the transaction becomes a shortsale–selling short
of the amount owed on the home. Hopefully the time it takes to complete one of these sales will be shorter.
Rates are staying low for now, but the fees to get those rates are on the rise. On November first borrowers are paying an eighth more on the rate due to a surcharge like a tax being charged on every Fannie Mae or Freddie Mac loan . The amount of extra fees charged to keep the lower rate can vary from lender to lender. It can be from $100 per $100,000 to $450 per $100,000. AND by the way, government appointed agency overseeing Fannie and Freddie say they are going to continue to add fees to assist in phasing out Fannie Mae and Freddie Mac and allowing private mortgage funding companies to compete for the business.
If you are thinking about buying a primary residence, a second home or investment property or if you would like to refinance one, if the deal works for you today, do it today. My assistant, Susan Belew and I would like very much to talk with you. We can get your loan preapproved if you would like to PURCHASE a property. We can check to see what programs are available for you to refinance too. To talk with us directly and NOT on the air, call us at 901 482-0354. That number again is 901 482 0354.
Memphis is a gold mine if you want to rent or if you want to buy. Memphis is one of the top 10 cities for renting because of the amount of space and amenities you get for your dollar.
Memphis is also one of the most affordable cities for allowing you to build wealth from buying real estate. Its affordable for buying your primary home but people in Memphis and people from coast to coast are building wealth by acquiring rental properties here. It’s a gold mine for the real estate investor because he can buy property in Memphis with a positive cash flow since our rental market is good. You can’t say that for all cities.
We’re talking about “Building Your Real Estate Portfolio–Choosing Your Team.” Every football team needs a good quarterback, center, half back and safety, a full back, a good coach, great cheerleaders. When you head out in the field to build your real estate portfolio, you need a great team too. The name of the game is for your properties to pay for themselves, provide you with an income and a comfortable retirement.
You need a good realtor, closing attorney or title company. You will need a good mortgage officer and more. Holly and Don, you have a unique ready-made team you can offer to people wanting to start investing. Tell us about it.
Questions answered by Don and Holly:
1. Who is Homevestors of America? What does the company do for homeowners?
2. Does the prospective home seller have to pay a fee to for them to make an offer on his home?
3. How does Homevesters determine the price on a home they are interested in purchasing?
4. Who usually sells their houses to HomeVestors?
5. You guys say you buy “ugly” houses. What is an “ugly” house?
6. How does the process work when selling your home to HomeVestors?
7. Can I expect a market value offer on my home?
8. Does HomeVestors buy condos and townhomes too? What about mobile homes?
9: What does HomeVestors offer to someone buying into their franchise?
Questions for Jo Garner to answer:
(1) The government HARP program still seems to be going strong. Are you still seeing strong demand for that program?
Jo – Talks about who is qualified for HARP and what it is.
HARP is short for the Home Affordable Refinance Program and helps homeowners with mortgages endorsed by Fannie Mae and Freddie Mac on or before 5-31-09 get their mortgages refinanced WITHOUT AN APPRAISAL for rates in the 2’s and 3’s. The mortgage payments cannot be reported over 30 days late within 6 months to a year in order to qualify. The fact there is no appraisal values required, can help those out there who are underwater on their mortgages. It helps homeowners who are NOT underwater too. My assistant Susan Belew and I would like very much to help you. Call us at (901) 482 0354. That number again is 901 482 0354.
The FHA streamline refinance is popular too . If you have an FHA loan now and want to refinance to the much lower rates, I can help you with streamline refinance with no appraisal on that type loan too.
(3) What kind of refinance programs are available for investors with FHA loans on their rental homes? Jo answers question on the podcast.
Real Estate Tip of The Week: (Don and Holley can have this if they have a good tip) If not, Jo can talk about getting rid of pmi and mortgage insurance on mortgages.
FHA you can after 78% LTV if you paid upfront mip
Conventional after 78% value of newest full appraisal.
Structuring your loan without the PMI at origination can help also. (Piggy-back loan
Holly announces the Memphis Investment Group meeting coming up Thurs Nov 8th 2012 at the Hilton at 240 and Poplar area. 6pm for early bird and 7pm for regular meeting.
Jo announces : Talk Shoppe will be presenting Janet Cherry, at the Better Business Bureau Wednesday 9a-10a free. The topic? “How To Behave Using Holiday Etiquitte.” For more information about Talk Shoppe go to www.Talk Shoppe.BIZ
Jo announces Tom King of King and Vaughan Consulting will be here next Saturday on our Real Estate Mortgage Shoppe program. We are talking about your appraisal values and lowering your property taxes.
GO VOTE!
Jo Garner, Mortgage Officer with Evolve Bank and Trust 6070 Poplar Ave Ste 250 Memphis, TN. 38120 (901) 482 0354 www.MoneyShoppe.NET.
Don and Holly Swogger, franchise owner Homevestors. For more information on how to open a Homevestors franchise, contact the Swoggers at (901)757-
If you want to get solutions to your real estate or real estate financing challenges, check out our podcasts or contact Jo Garner, loan officer with Evolve Bank and Trust. For more information on the services Homevestors offer, contact Don and Holly Swogger of Homevestors.