Good morning Memphis! And good morning to our listeners across the country on I-HEART radio. You’re on the Real Estate Mortgage Shoppe program with me, Jo Garner, Evolve Bank and Trust. Our co-host today is Attorney Ron Cohen with Ballin Ballin and Fishman and also co-owners of Premium Title Group.
Ron, glad you are back with us today to talk about some legal points concerning our homes and other real estate.
Our featured guest is realtor and investor, Holly Swogger of Homevestors. Holly glad to have you with us. Tell us a little about who you are and what you do.
Our topic today is “Is It Real Property or Personal Property? Does It Affect Financing?” If YOU have a question about your real estate, your financing or a legal question about your home, anything to do with your real estate, join us around the coffee table by calling 901 535 WREC. That number again is 901 535 9732.
Mortgage rates have been raising eyebrows this week with their spike upward and then its drift back downward. Mortgage rates move with the mortgage backed securities. The “fiscal cliff” we’ve been talking about has some investors nervous but money by the billions is still being plowed back into the system, keeping rates low. (even though they are a little higher than from the lowest point) The 30-year fixed-rate mortgage rose to 3.62 percent from 3.59 percent.The benchmark 15-year fixed-rate mortgage rose to 2.91 percent from 2.88 percent.
Do fixed rates in the 2’s and 3’s sound good to you? They are good but its not just about the rate anymore. Its about how much money you save overall—by lowering your payment per month AND eliminating some years off the loan. Between lowering the payment and shortening the number of years on your loan, you can save hundreds of thousands of dollars right now. Watch out for hidden costs though.
The government oversight committee is forcing g-fees to be added to almost every loan closed by Fannie Mae or Freddie Mac. Within less than a year borrowers are now paying about $440 to $880 in extra costs for every $100,000 borrowed. And they are talking about increasing the fee again.
Word to the wise: If the deal works for you today, do it today. My very capable assistant, Susan Belew, and I have several methods to lowering your costs considerable if you are buying a house or refinancing you house. Each client’s situation is different and there are several ways Susan and I can help you minimize the costs. Give us a call directly off the air at 901 482 0354. That number again is (901) 482-0354.
Chopping off the extra costs on mortgages is the key element to a success home purchase OR home refinance. On home purchases the key is to get the seller to pay as much as they are willing to pay toward your closing costs and prepaid taxes and insurance. Secondly there is quite a number of down payment assistance programs available . Yesterday I closed a loan with a young lady who bought a house over $150k and only paid $113 at closing out of pocket. The house was her Christmas present to herself and her family. —and they still had money left to spend on Christmas too!
The government refinance program HARP does not generally require an appraisal so this can save you about $500 dollars are more. By inching up just a little above the market mortgage rate, the mortgage company can pay your closing costs too letting you keep more in your pocket. Susan and I and help you cut down on your cost on FHA Streamline refinance loans too. Let ‘s talk and I can show you how. Just call us directly at 901 482 0354
Oh and there’s a new down payment assistance program that just hit the scene where you do NOT have to be a first-time homebuyer. There are no additional fees associated with some of the programs and after 5 years the assistance becomes a grant to you. what a deal!
Holly I know as a realtor you help a lot of people get into their homes with the least amount of money down and the least amount of hassle. Home prices have been steadily going back up and lots of people are out buying right now why they the sweet deal of low prices AND low mortgage rates.
Ron and Holly, I know that both of you see a lot of different contracts terms when people make offers to purchase real estate. Sometimes personal property like lawnmower or window treatments are written into the contract to stay with the property.
Ron, both you and Holly have probably experienced contracts that mix real estate property with personal property. Ron, what is the difference between real estate property and personal property?
Questions for Ron Cohen to answer:
1. What is the rule on what the tenant gets to take from the property if it is a commercial property and the tenant has brought in trade items, agricultural items or domestic items?
2 How can realtors help keep communication straight on what the buyer will take and what the seller decides will stay?
4 What are some rules of thumb you can stick to when the decision becomes murky on what is real and what is personal?
5 What are remedies when the contract concerning personal property?
Questions for Jo Garner to answer:
1. What are some methods you use to lower the lending costs to you’re borrowers?
A. Eliminating private mortgage insurance
*Adding a piggy-back loan is usually cheaper than payment pmi-but not always
*Using lender paid or seller paid pmi and closing costs
*Setting up vendor discounts to pass down to my customers
*Using various down payment assistance programs for people buying a home.
2. What kind of money can you save your customers on a refinance?
Last week I sat across the closing table from some very happy customers. They owed about $230 thousand on their mortgage and were payment $2,211/mo principal and interest per month. They had 25 years left to pay at this rate. But, they wanted to retire in a few years and at the same time put their teenage daughters through college. How were they going to do both?
We refinanced them to a 15 year loan. Getting rid of the last 10 years of the mortgage saved them the principal and interest payment of $2,211/mo x 120 month (which is 10 years). This alone saved them $265,320 dollars in payments. Then, to add icing to the cake, we lowered the rate significantly saving them about $664/mo. Over the next 15 years the savings on the payment will save them $119,676. Imagine your banker writing you a check for this cash—She She totals up on her adding machine the $265,320 and then the $119,676 and makes the check out to you for $384,996. So what if you enjoy it a little at a time for the next 15 years? Its REAL MONEY! And you can get your children through college AND retire all at the same time. WHAT A DEAL!
Questions for Holly Swogger to answer:
1 What kind of real estate work do you do?
2 What experiences have you had with the war between tenants and lando
3
Real Estate Tip of the Week : (right after 9:45am break)
2. Since Talk Shoppe will not be meeting for the next 2 weeks, we would like to issue you what we call “Jack’s Challenge.” Every year our oldest Talk Shoppe participant Jack Redden would challenge us to invite someone out for coffee—-someone you know who is alone during the holidays or maybe someone who has suffered loss. Be a friend, buy them coffee and take some time to care. You may never know how much it means to that person—doing that for someone else can pay dividends to you too.
3. Next Saturday on the Real Estate Mortgage Shoppe program we will have Lynn Lanigan from Lanigan Worldwide Movers (An Allied Agent) with us. Lynn will be sharing some wisdom about how to MOVE YOUR STUFF.
Attorney Ron Cohen’s notes:
Subject: What Is It, Real Property, Personal Property Or Something In-Between
Fixtures:
A fixture is personal property that has been attached to real estate in some permanent manner.
For example:
A sink at the store is personal property. (A spittoon would have been fine)
Once it has been installed it becomes part of the real estate and is now called a fixture.
Who cares about the distinction?
If a real estate sale contract fails to include personal property it might not be conveyed with the sale.
A contract need not include fixtures because they are conveyed with the real estate automatically.
Tenants, Commercial and Residential:
What if my tenant installs personal property on my real estate. Can he remove it when he leaves?
Maybe, maybe not.
Tenants may remove three types of fixtures:
1. Trade fixtures such as restaurant equipment.
2. Agricultural fixtures such as hen houses and tool sheds. (Back in the house after the story)
3. Domestic fixtures such as bookshelves and window treatment.
How can I be sure what it is.
Often a lease will define what remains with the property after the expiration of a lease. A written agreement such as a lease avoids needless confusion about what it is.
What if my tenant vacates the property and leaves a trade fixture behind? What is it then?
It becomes part of the real estate and is then owned by the landlord.
Severance:
What if the owner of the real estate removes a fixture.
It becomes personal property and remains with the owner even if he sells the land.
For example, if a land owner removes a wooden fence permanently affixed to the real estate and places the wood in a pile for use as firewood, the wood then becomes personal property and is not conveyed with the real estate.
If the land owner re-erects the fence on the land to prevent cows and other strangers from entering the land, it then becomes a fixture and is a part of the real estate. (There has to be a way in).
9:15 AM http://www.youtube.com/watch?v=gFtb3EtjEic “It’s The Most Wonderful Time Of The Year” Andy Williams
9:30AM http://www.youtube.com/watch?v=yMN2v1drlXI “Til The Season Comes ‘Round Again” Kenny Rogers
9:45 am http://www.youtube.com/watch?v=rhc2DSsDhG0 Manneheim Steamroller “God Rest Ye Merry Gentleman
Holly and Don Swogger, real estate investors and owners of Homevestors franchise in Memphis will be sharing their wisdom on building your real estate empire.
Jo Garner, Mortgage Officer Evolve Bank and Trust (901) 482 0354 jogarner@mindspring.com www.MoneyShoppe.NET.
Ron A. Cohen
Of Counsel: Kusper & Raucci, Chtd.
30 North LaSalle Street
Suite 3400
Chicago, Illinois 60602
312-332-5000
312-346-1145 (direct)
312-332-4663 (facsimile)
rac@kusperraucci.com
proathleteinjuries.com
Premium Title Group (Memphis office)
(901) 752 1587 option 2 for Jenett.
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)757-9883
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. 901 757-9883
Lynn McDonald, Insurance Agent Erin McDonald Allstate Insurance 901 849-7101
Duane McCrory, Top Quality Service (heating and air) 901 644-3303
Graham Stuckey and Associates grahamstuckey1@gmail.com $500 TVA free money for energy audits and repairs
For real estate financing solutions and legal solutions, plug into the Real Estate Mortgage Shoppe program. You can find mortgage rates, FHA Streamline refinance with no out-of-pocket costs, refinancing options, home purchase loan programs, answers and money-saving tips for loan closings and more.