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Private Mortgage Insurance vs FHA-What Is Your Best Strategy?

In Insurance, Mortgage Loans & Rates, Tips, Tricks & How To's by Jo Garner0 Comments

Today on Real Estate Mortgage Shoppe we are going to challenge you to break out of traditional assumptions and tap into some treasure that other people miss because they didn’t know where to look. We have the national guru, THAT MI GUY himself, Steve Richman from Genworth Private Mortgage Insurance, who is going to shine some light on some tools in the mortgage insurance industry that can transform your mortgage payments to make them more manageable.

Thank you for connecting with me.  Please subscribe at www.JoGarner.com so we can stay in touch.   You will get weekly updates on topics up-to-date real estate and financing information.   

To Your Success,

Jo Garner, Mortgage Loan Officer & Radio Talk Show Host

(901) 482-0354 Jo@JoGarner.com   www.JoGarner.com

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GREETING OUR RADIO AND PODCAST LISTENERS

Good morning, Memphis!  Welcome to our internet listeners and podcast listeners across the 50 states! You’re on Real Estate Mortgage Shoppe. I’m your host, Jo Garner, Mortgage Loan Officer.  You can connect with me at www.JoGarner.com. Thank you to Evolve Bank and Trust, the Memphis Mortgage Production office,  for sponsoring this episode of Real Estate Mortgage Shoppe today.   If you or someone you know wants to ratchet up their mortgage career and have fun doing it, contact Chad Irwin at (901) 260-1480.

 Our general topic is Private Mortgage Insurance vs FHA-What Is Your Best Strategy? If you have a question or comment and you’re on Twitter, make them to #JoGarner or call me directly off the show at (901) 482-0354.  You can call us while we are live at (901) 535-9732 or outside the Memphis area (800) 474-9732 Today is March 18th, 2017.

INFORMATION ON TODAY’S SHOW

Today on Real Estate Mortgage Shoppe we are going to challenge you to break out of traditional assumptions and tap into some treasure that other people miss because they didn’t know where to look.   We have the national guru, THAT MI GUY himself, Steve Richman from Genworth Private Mortgage Insurance, who is going to shine some light on some tools in the mortgage insurance industry that can transform your mortgage payments to make them more manageable.

INTRODUCING STEVE RICHMAN, GENWORTH MORTGAGE INSURANCE

Steve Richman joins us from the great state of North Carolina.  Lenders across the United States know you as the national speaker and guru on private mortgage insurance who energizes, educates and entertains us.  But you have also been a successful litigation attorney and you’ve taught in an MBA program. Tell us a little more about yourself and about Genworth Private Mortgage Insurance.  

INTRODUCING PHILLIP DONOHO, GENWORTH MORTGAGE INSURANCE

Jo: Also we have  in the studio this morning Phillip Donoho, Genworth  Senior Field Sales Representative for the state of Tennessee  Phillip, you have a long history in the mortgage industry.   Tell us a little bit about yourself and what you do for Genworth.  

INTRODUCING ERIC van ELKAN, GENWORTH MORTGAGE INSURANCE

Jo: Eric van Elkan with Genworth Private Mortgage Insurance is the real reason we have all of you as guests on Real Estate Mortgage Shoppe this morning.   Eric, I understand you have recently joined the Genworth team and you represent them well.  I was convinced when we first met at a realtor event that our listeners needed to hear what you guys have to share. How did Genworth get so lucky to have you on their team?  

MORTGAGE MARKET NEWS WEEK OF MARCH 13TH, 2017 TO MARCH 17TH, 2017

  • Jo:Today we’re talking about looking at “What Is Your Best Strategy?”  You have to push past traditional assumptions when you plan your path.   This week the Federal Reserve raised their overnight rate by .25%.  This was not a surprise.  What was surprising to most people was that the pricing on mortgages went down when the Fed rate went up. How did THAT happen? The mortgage-backed securities market had already anticipated the Fed’s move and had built in the pricing hedge AHEAD of the Fed’s decision to raise the rate.  Based on the Fed’s move and their prediction for the future, the bond market reacted and the mortgage rates, that are tied to bond yields, eased down on their pricing. Conventional rates ended the day yesterday around   30YR FIXED – 4.125%- 4.25%;  the FHA rates came in a little lower. Conventional 15 year fixed rates came in around 3.5% to 3.625%.  Rates move everyday in the mortgage market.   MAKE YOUR PLAN. LET’S WORK YOUR PLAN. IF THE DEAL WORKS FOR YOU TODAY, LET’S DO IT TODAY. Call me personally and let’s find out what can work best for you.  Call me personally because I want to work with you personally.   (901) 482-0354 or email me at Jo@JoGarner.com or connect at www.JoGarner.com

PRIVATE MORTGAGE INSURANCE -WHAT IT IS & HOW TO USE IT

Steve, just like when mortgage rates pleasantly surprised people this week by DROPPING when the Fed rate went UP, what are some things that may pleasantly surprise people about what private mortgage insurance can do for them?  

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LET’S TALK SHOP—TALK SHOPPE’S BUSINESS TIP FOR REAL ESTATE PROS:

It’s time to talk shop with Talk Shoppe’s Business Tip For  Real Estate Professionals. Talk Shoppe is a marketing company offering free education and networking to anyone interested in real estate or in business. Talk  Shoppe is made possible by the financial support of its sponsors and advertisers.

For more about Talk Shoppe, go to www.TalkShoppe.com (shoppe)  For our Talk Shoppe Business Tip today we have Talk Shoppe advertiser, Megan Epperson of Nova Copy in Memphis, TN.   Nova Copy supports the local business community by hosting the free Talk Shoppe events every Wednesday.

What is our Talk Shoppe Business Tip for Real Estate Professionals today?  Megan Epperson of Nova Copy  gives about a 1 minute tip.    (Jo says, “Thanks, Megan Epperson from Nova Copy.

Megan, you have a personal motto to “Be genuine. Be Real. Be Relatable. ”    You definitely are true to that motto.  What do you feel is the key to your success as marketing representative at Nova Copy?

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QUESTIONS ANSWERED BY PHILLIP DONOHO:

 

  •  Phillip Donoho shares a story illustrating when switching from an FHA loan program with high mortgage insurance over to a conventional program with less for the borrower to have to pay for mortgage insurance.

 

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QUESTIONS ANSWERED BY ERIC VAN ELKAN:

 

  • Eric talks about how he came to work with Genworth and the things about the company that makes him want to stay.

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QUESTIONS ANSWERED BY STEVE RICHMAN:

 

  • What are some of the advantages of using a conventional loan vs the government FHA loan program?
  • What kind of money can this save a mortgage borrower by using the conventional loan vs the FHA loan?
  • What are some flexible options the conventional private mortgage can offer a borrower that they can’t find using the FHA loan program?
  • What are some ways to avoid using private mortgage insurance?
  • What are some ways homeowners can get rid of their existing private mortgage insurance quicker?
  • What are some of the ways Genworth Private Mortgage Insurance company roll up their sleeves to assist homeowners who are struggling with life’s challenges?
  • What are the advantages to using the new Home Ready 3% down product?

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QUESTIONS ANSWERED BY JO GARNER:

 

  • REFINANCE YOUR FHA LOAN TO A CONVENTIONAL LOAN AND GET RID OF THE  HIGH FHA MORTGAGE INSURANCE PREMIUM THAT HAS TO BE PAID FOR THE ENTIRE  LIFE OF THE LOAN.

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TAP THE WALL TO FIND YOUR TREASURE

My uncle was more like a big brother to me growing up.  He was addicted to adventure and, as a teenager he loved to find caves to explore.   He and our cousin found a map in the library of a relatively normal looking cave and decided to explore it.  If my uncle had just assumed the person who drew the map was correct and the cave ended at the back wall, there would nothing spectacular about this cave and no exciting story to tell the family when they got home.  

But my uncle did NOT assume like everyone else that the map was the final authority.  He began tapping the back wall and heard a hollow sound.  He and my cousin quickly anchored their lights against a rock and set about pulling rocks away from the bottom of the wall.  After heaving out several rocks,  an unexpected tunnel opened up.  After crawling 50 feet through the tunnel, my uncle and cousin climbed out and stood up in a  large room where they discovered an old civil war hide out.  The old civil war artifacts they stumbled onto told the story of soldiers finding a good night’s sleep and a meal in the cocoon of this underground cavern. To their credit, they did not disturb the artifacts but, wow, just by ignoring traditional assumptions of the map, they tapped on the wall to find treasure and a terrific story.

My uncle’s cave adventure reminds me we have to move past traditional assumptions that limit us.  Start tapping on the wall to find your treasure.  How to you feel about refinancing from a lower rate to a higher rate?   People may look at you funny at first , but when you show them how you saved $70,000 dollars in mortgage insurance over the life of your mortgage, you will see a very different look on their face.   

Let’s step back into history for a moment.  Effective April 1, 2013 the FHA mortgage program was bleeding out and to stop the flow of losses, they raised the monthly mortgage insurance premium  to 1.35% of the loan amount.  On a $200,000 loan, that is about $225 every month a borrower had to pay for monthly mortgage insurance. FHA released an additional letter # 2013-04 found at www.hud.gov This letter states that  borrowers with FHA loan case numbers assigned after June 3,2013 would, not only have to pay the higher mortgage insurance premium per month, but they would have to pay their required monthly MIP for the life of the loan. Whether you owe $200,000 on the balance or only $1, you are required to pay the FHA government loan monthly Mortgage Insurance Premium for the life of the loan.   

But if you are adventurous like my uncle, here’s the way past the wall and out of the tunnel to the treasure. If you bought a home in 2013 for $208,000 and paid a down payment of less than 5% on an FHA 30 yr loan, you are paying $225/month for the life of the loan.  If you have the loan for 30 full years, you will pay $81,000 to the FHA government agency for insurance that does even cover you at all. That’s crazy wasted hard earned money!  Even if you only have the loan for 10 years, you will have paid $27,000 for mortgage insurance that does not benefit you one bit.

Rates in June of 2013 were around 4.5%.If you bought after 2013, your rate may be a little lower.   Values on homes in many areas have increased 20% to 30%.   It is possible that someone who bought a home on or AFTER June of 2013 has seen an increase in the value of their house by enough to refinance to a conventional loan with no lifelong mortgage insurance premiums to pay—even, in some cases if the rate today was a little higher  than the rate they currently have on the loan, they could still save money!   Talk about moving past conventional wisdom!  You get a big high five for outsmarting traditional wisdom and putting that kind of money back in your own pocket instead of throwing it out the window.   Move past traditional assumptions that restrict your options.   Tap on the wall to find your treasure.  

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ANNOUNCEMENTS:   

  1. Talk Shoppe offers free networking & education to anyone interested in real estate or in business. Talk Shoppe meets every Wednesday 9A-10A CT at Nova Copy 7251 Appling Farms Parkway Memphis, TN    This Wednesday March 22, 2017 Talk Shoppe  presents: “Making Your Marketing Message Stick” with our Talk Shoppe Advertisers’ Support Leader—which happens to be me, Jo Garner, Mortgage Loan Officer and Radio Talk Show junkie. Talk Shoppe events are free thanks to supporters  like  Katie Gilliland of  www.backuprx.com —  back up cloud services for your business continuity.
  2. Chef Eric Meyers, www.EatAtErics.com   tasty food from his food truck and catering for your events in the Memphis MSA
  3. Thank you to Evolve Bank and Trust, the Memphis Mortgage Production office,  for sponsoring this episode of Real Estate Mortgage Shoppe today.   If you or someone you know wants to ratchet up their mortgage career and have fun doing it, contact Chad Irwin at (901) 260-1480.
  4. FOR THIS PODCAST OF REAL ESTATE MORTGAGE SHOPPE AND MORE, GO TO JOGARNER.COM
  5. Real Estate Mortgage Shoppe reminds you that MAKE YOUR PLAN. LET’S WORK YOUR PLAN.  IF THE DEAL WORKS FOR YOU TODAY, DO IT TODAY.

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SPECIAL NOTE:  REAL ESTATE MORTGAGE SHOPPE  RECOMMENDS THAT YOU CONSULT WITH A FINANCIAL, LEGAL OR OTHER CERTIFIED, LICENSED PROFESSIONAL BEFORE ACTING OR INVESTING ON ANYTHING YOU HEAR OR SEE FROM THE CONTENT ON THIS SHOW OR BLOG POSTS. THE INFORMATION WE SHARE ON REAL ESTATE MORTGAGE SHOPPE IS GENERAL IN NATURE MEANT FOR GENERAL EDUCATIONAL PURPOSES ONLY.

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REJOINDERS:  

Nic Ponzo, Reverse Mortgage Specialist in New York.  Evolve Bank and Trust  nponzo@getevolved.com

Eve Sotiriou, Waterville, Maine

Terri Murphy, www.MurphyOnRealEstate.com   Terri is a national speaker, author and real estate/lending coach.

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About Megan Epperson

 

Megan Epperson,  Account Executive

Phone: | 901.507.4658  Cell: | 901.413.4249


Megan Epperson has been an Account Executive with NovaCopy since 2016.  Prior to that she spent 2 years as the Customer Service Manager for a dental laboratory.  Her background is social work, which she did at the YMCA for 10 years.

Megan is a Memphis native and a graduate of Germantown High School and the University of Memphis.

Megan has two children ages 7 and 4.  She is an active member at her church, Sycamore View Church of Christ.  She lives in Cordova, specifically Countrywood where she is the Vice President of the neighborhood association and heads up the annual Countrywood Neighborhood Sale.  In her spare time, she sells jewelry for Premier Designs – making sure every gal has the right jewelry to make them feel special.

Her key to success is to: ” Be genuine. Be real. Be relatable.  And know that at the end of the day we are all people trying to do the best we can.  My best may not be equal to your best, but our effort is equivalent.”
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About Steve Richman

Steve Richman is Genworth’s “That MI GuySM“. He is a national speaker who has energized, taught and motivated mortgage and real estate professionals in every state in the U.S. After years of success as a litigation attorney, Steve entered the mortgage and real estate profession. He has been a loan officer, account executive and manager of a mortgage operation.

Steve taught in the MBA program at the Sellinger Business School and has been a guest lecturer for the Columbia University Business School’s MBA program. He is a Master Certified Sales Negotiation Trainer and a Certified Trainer in DiSC Behavioral Profiling.

He graduated from University of Maryland and the National Law Center at George Washington University.

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About Phillip Donoho

Phillip Donoho

Account Manager

Genworth Mortgage Insurance

(615)630-5293

phillip.donoho@genworth.com

Phillip Donoho joined Genworth Mortgage Insurance as a Senior Field Sales Representative for the state of Tennessee in 2011. A mortgage industry professional since 1996, he began his career as a retail loan originator and later transitioned to the wholesale lending channel, serving as an Account Executive for Irwin Mortgage, Freedom Mortgage and later MetLife Home Loans. Phillip is an active member of the Mortgage Bankers Association chapters in Nashville, Memphis and Knoxville, Tennessee.

He earned his Bachelor of Business Administration degree from Middle Tennessee State University.

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About Eric van Elkan

Eric van Elkan

Account Executive

Genworth Mortgage Insurance

(205) 410-5908

eric.vanelkan@genworth.com

 

Eric van Elkan joined Genworth Mortgage Insurance as a Field Sales Representative for the state of Alabama in 2016. An insurance professional since 2014, he began his career as a Sales Leader at StateFarm in 2013. Eric is an active member of the Mortgage Bankers Association chapter in Birmingham, AL. 

He earned his Bachelor of Business Economics degree at the University of Alabama at Birmingham.

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ABOUT JO GARNER-MORTGAGE LOAN OFFICER:

Jo Garner, Mortgage Loan Officer
cell: (901) 482 0354

 jo@192.232.195.219

www.JoGarner.com

  Twitter: @jogarner

Jo describes her job description: As a mortgage loan officer, my job is to give my client the benefits they want from their financing terms– listening to my client and determine what’s of the most value to THEM–  What is their comfort level on a house payment, how much are they comfortable paying down, what type of financing do they need to get the house they want to buy or refinance. Different clients have different priorities in life—some are buying their first home with very little down payment funds.  Some are recovering from medical challenges, divorces or preparing to send children to college and some are embarking on a long term goal of buying properties to build rental income. Whatever their personal priorities are, my job is to put together a mortgage with comfortable terms that will help them achieve their goals.”

Jo Garner is a mortgage officer with extensive knowledge in tailoring mortgages to her customers who are refinancing or purchasing homes all over the country.  She offers conventional, FHA, VA or other loan programs for refinancing and purchases.  

Jo can help you look at rent vs buy, when it makes sense to refinance, how to get the best deal on your home  purchase financing.   

Jo Garner  has been in the real estate/financing business for over 20 years.  She got her start in Portland, Maine where she first began her real estate career. She received her real estate education from the University of Southern Maine  and was personally mentored in San Diego, California  by Robert G. Allen, author of Nothing Down, Creating Wealth and The Challenge. 

On moving back to West Tennessee in 1987, she went into business buying and selling discounted owner-financed notes secured on real estate.  In 1990 Jo went to work for a residential mortgage company and has been a mortgage loan officer for over 20 years.  Her goal is to offer excellent, affordable service to her customers, tailoring the loan programs to the specific needs of her clients.  

In addition to her work in the mortgage field, Jo Garner  is the primary sponsor and founder of Talk Shoppe in Memphis. www.TalkShoppe.com  Jo is host of Real Estate Mortgage Shoppe  and currently publishes on her blog www.JoGarner.com

 

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