HIGHLIGHTS FROM OUR PODCAST:
MARKET NEWS
LOOK BACK MEMPHIS TRIVIA CONTEST
QUESTIONS ANSWERED BY AMOS MACKEY:
1. Year-end home sales slightly down for 2014. A steep drop in foreclose sales led to an overall
drop in sales. –what story do you read BEHIND the numbers?
2. Memphis residential market, how it fared in 2014 and what we can expect in 2015.
3. Biggest commercial project in Memphis –Bass Pro and what Bass Pro brings to Memphis, TN.
4. What got you started in your journalism career and what has kept you in it?
5. How can real estate professionals and other business people best use the
Memphis Daily News as a tool?
QUESTIONS ANSWERED BY TOM KING:
1. Talks with Amos Maki about Bass Pro and the Cross Town Building and what it
brings to Memphis.
2. Talks about what is happening with the backlog of FHA appraisal orders due to FHA
lowering monthly mortgage insurance premium starting Monday January 26th, 2015.
QUESTIONS ANSWERED BY JO GARNER:
1. Is there a rule-of-thumb for determining if it is profitable to refinance your house?
2. What is the rule-of-thumb making the decision regarding Rent vs Buy?
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4th segment REAL ESTATE TIP OF THE WEEK:
ANNOUNCEMENTS
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Good morning, Memphis! Good morning across the country on iHeart Radio and the BOCI
channel. You’re on the Real Estate Mortgage Shoppe and I’m your host, Jo Garner, Mortgage
Officer with Evolve Bank and Trust. Today’s program is sponsored by Alliance Title and Escrow.
Joe Rojas over there has been doing a great job for MY clients. If you need someone to close
a refinance or purchase mortgage for you, give Joe Rojas a call at (901) 333-7999. What’s
going on right now with YOUR real estate property and where are you on your mortgage terms?
Call us on the air and let’s talk about YOUR real estate scenario. (901) 535-WREC (901) 535-
9732. Today our general topic is “Memphis Real Estate in 2015” and we have a real
estate expert around the coffee table with us—Amos Maki of the Memphis Daily News. Amos
Maki, tell us a little bit about yourself and what you cover at the Memphis Daily News. <Amos
Maki of the Memphis Daily News >
(Jo) Tom King, appraiser with Bill King and Company is also sitting around the table with us.
Tom, I’m convinced everyone in town knows you, but please take a moment to introduce
yourself and talk a little bit about what you do. <Tom King >
(Jo) Mortgage rates continue to defy logic this week—remaining at 19-20 month lows. The 30 yr
fixed rate on conventional mortgages coming in around 3.625 with no points on the best
scenario . The 15 and 10 yr mortgages are very close to 2.875% to 3%. You can get rates lower
than that if you want to pay a little extra. The European version of Quantitative Easing is what
is driving our bond markets in the US—sending mortgage rates down. If the refinance scenario
you considered last year or the year before didn’t work then—TRY AGAIN. You might be
pleasantly surprised. Not only have the rates dropped down to an almost-2 year low, but the
government FHA mortgage program just dropped it’s monthly mortgage insurance amount
significantly. If you or someone you know looked at refinancing your home or BUYING one last
year or the year before and you weren’t QUITE comfortable with the payment—call me and my
very experienced assistant, Susan Belew. We can put together some financing scenarios for
you to compare . Just call us on the air at (901) 535-WREC (901) 535-9732. Or you can reach
me directly OFF the air at (901) 482-0354 on catch me on the blog www.192.232.195.219
<Amos Maki and Tom make some short comments>
(Jo) Winners in the real estate and mortgage market this week are homeowners who can
refinance and free up a $100 or several hundred dollars per month on the house note. Some
clients tell me their main goal is to free up funds per month by lowering their interest rate and
payment. Others what to lower the rate AND shorten the term. Those people are the ones
who can save TENS of thousands of dollars over the course of time by eliminating the extra
principle and interest payment.
Yesterday I talked with a client who wanted to go from a 30 year mortgage to a 20 year loan.
They planned to stay in their home for a long while. He owed around $225,000 and had an
interest rate of 4.875% with about 28 years left to pay on the mortgage. By going down to a 20
yr term with a rate of 3.625% no points , he would save about $114,000 over the next 20 years
just by eliminating 8 years from his mortgage. He would pay $160 more per month but saving
$114,000 over the twenty years made it worth it by more than $300 per month.
If he had wanted to lower his payment, we could have tacked back on the 2 years and dropped
the rate to 3.75% to just lower his note. But the real savings for someone who plans to keep
their house, is to lower the rate and shorten the term.
Other winners in the market right now are those of you out BUYING houses and locking in these
low, fixed rate mortgages. Especially renters who can buy a bigger house with more amenities
and have a payment about a third less than what they would pay in rent on the same place.
First-time homebuyers don’t always have a lot of money down. And that’s ok. There are plenty
of down payment assistance programs we can pull out and use like Tennessee Housing
Development Agency, Shelby County Down Payment Assistance program and assistance
programs in other states. The 100% USDA loan is great too for people who meet the criteria
and if the property is eligible for the program because it is a 100% financed loan, allowing you
to leave money in your emergency fund. The veteran loan is a 100% loan too. Call my directly
if you want to talk about what YOU need for your financing. (901) 482-0354 (901) 482-0354
www.192.232.195.219
<Tom or Amos Maki make comments>
(Jo) Amos, what do YOU see going on with the real estate market in Memphis right now?
<Amos Maki launches his topic>
2nd segment after 9:15 break—It’s time for the Look Back Memphis Trivia
Contest. The Look Back Memphis Trivia Contest is brought to you by
Memphis notable historian, Jimmy Ogle www.jimmyogle.com,. Jimmy
Ogle offers free historic walking tours in downtown Memphis. To get his
spring and fall schedule, go to www.jimmyogle.com . Our Look Back
Memphis Trivia Contest SPONSOR is Lawhon Landscape. The Lawhons
can help you start planning for spring with a plan for your landscaping and grounds or they can
give your lawn and garden a spring cleanup. Get a free consultation. 901-754-7474.
Www.lawhonlandscapedesign.com
The Lawhons of Lawhon Landscaping are giving away a $25 gift card to the
first person who calls with the correct answer to our Trivia question. If you
know the correct answer to your trivia contest, call us on the air at (901)
535 WREC. (901) 535 9732.
Garner # 39 01/22/15
TRIVIA QUESTION WHO AM I?
Pressbox Lofts (Former Toof Building, 195 Madison Avenue, 334-1849)
Question: In 1912, I was constructed for the (now) oldest printing company (Toof Printing
Company) in Memphis. What is my new name?
Hint: I will be open on Madison Avenue in Downtown for apartments this year.
Hint: I was placed on the National Register of Historic Places in 1982.
Hint: In 2000, I was integrated into the design of AutoZone Park.
Final Hint: “A Note For Hope” is a large mural on my west side.
Answer: Pressbox Lofts. In 1912, the S.C. Toof & Company Printers began construction on a
headquarters building in the architectural style of the Chicago School. With an emphasis on function over
ornament, the building was made to last with steel-frame construction under masonry cladding. And last it
did— in 1982 the building was placed on the National Register of Historic Places. In the new millennium, the
building was integrated into designs for AutoZone, a state-of-the-art stadium reminiscent of classic American
city ball fields.
In 2014, renovation began on the 65,000sf building, converting the long empty building into 50 units of loft
apartments, ranging from 680sf to 1290sf, in seventeen different floor plans; and ground level retail space.
Other features of living in Pressbox Lofts include the obvious like proximity to the Memphis Redbirds
baseball games, as well as walking distance to all other Downtown and Riverfront venues and events, and
the Madison Trolley Line. Add the full-service Coffee Shop and Roof Deck to parking garage, being pet-
friendly and on-site storage facilities.
Jimmy Ogle gives free walking tours in Downtown Memphis during the Spring and Autumn, with
the Spring, 2015 tours beginning Sunday, March 15 (Bridge Walk) and April 7 (Union Avenue
Manhole Cover & History Tour). Go to jimmyogle.com for the 2015 Spring season schedule
and locations.
Shelby County Courthouse: Third Thursday each month at 12:00 noon – next is Thursday,
February 19 and March 19.
____________________________________________________________________________________
QUESTIONS ANSWERED BY AMOS MAKI:
3. year-end home sales data for 2014. A steep drop in foreclose sales led to an overall drop in
sales.
4. We can cover the residential market, how it fared in 2014 and what we can expect in 2015.
5. We can also talk about CRE, industrial, office, retail and multifamily. Retail was particularly
strong, with a lot of grocery store activity. Biggest commercial project in Memphis –Bass Pro
and what Bass Pro brings to Memphis, TN.
6. What got you started in your journalism career and what has kept you in it?
7. What are one or two of your most memorable stories you have covered?
8. How can real estate professionals and other business people best use the
Memphis Daily News as a tool?
QUESTIONS ANSWERED BY TOM KING:
1. Talks with Amos Maki about Bass Pro and the Cross Town Building and what it
brings to Memphis.
2. Talks about what is happening with the backlog of FHA appraisal orders due to FHA
lowering monthly mortgage insurance premium starting Monday January 26th, 2015.
QUESTIONS ANSWERED BY JO GARNER:
1. . Is there a rule-of-thumb for determining if it is profitable to refinance your house?
Yes. One very key factor in determining if a refinance would be profitable for you is to
answer the question “How long am I going to keep this house?” If the answer is that
you plan to keep the house for 5 years or more, then a good rule of thumb is to save
enough money either on a lower payment or a shorter term that would allow you to
recapture the amount you paid in closing costs within 2 years or less. You need to save
enough money on the refinance transaction that in 2 years or less, you will have offset
the amount you paid in closing costs. That is what I call a good “home financing design.”
Example: Let’s say you owe $200,000 and when you originated this loan about 5 years
ago, you got a fixed rate of 5.5%. That means your principal and interest payment is
$1,136 plus taxes and homeowners insurance and maybe some mortgage insurance.
So we know today you are paying $1,136 per month for principal and interest. Now you
can lock a mortgage rate of 4% or less on another 30 yr term and your closing costs are
about $2,614 with an appraisal fee included. Your new principal and interest payment
on 4% will be $955/mo . Your savings per month is about $181/mo . Divide your closing
cost amount of $2,614 by the amount you are saving per month and you will recapture
your closing cost in 14.5 months. Not a bad design.
If you want to make one extra payment per year, you can knock off about 8 years from
the loan term if you will make the extra payment every year.
If you want to shorten your term to 15 years and get a rate of 3.5% or less, you would
calculate the number of payments eliminated by shortening term. Let’s use the $200K
again. Your 15 year principal and interest payment per month would be about $1,429
which is about $294/mo more than what you are paying now.
However, you are eliminating 10 years of principal and interest payments . $1,135/mo
times 120 months or 10 years is a savings of about $136,200 in total payments. Is it
worth it to spend $2,614 for closing costs to save $136,200. But if you are not going to
be in the house very long, you may just want to make extra payments at the rate you
currently have if you cannot stay long enough in the house to get your closing cost
investment out.
2. What is the rule-of-thumb making the decision regarding Rent vs Buy?
______________________________________________________________________
4th segment REAL ESTATE TIP OF THE WEEK:
Jo’s announcements:
Thank you to Joe Rojas at Alliance Title will take good care of you at closing. Let
him talk to you about YOURS 901 333-7999
Congratulations to our mortgage manager, Chad Irwin of Evolve Bank & Trust,
and other lenders who were installed this past week to take the leadership of
Memphis Mortgage Bankers Association. Looking forward to a great year!
Talk Shoppe offers free education and networking to anyone interested in real estate or in business.
Coming up Wednesday January 28th, 2015, we will be presenting the “Mastermind Principle: based on
the book Think and Grow Rich by Napoleon Hill.” Talk Shoppe events are free at the YMCA NUBER
CENTER 5885 Quince Rd Memphis (across from Lichterman Nature Center) 9A to 10A Wednesday. For
more information go to www.TalkShoppe.com
To hear today’s podcast of the Real Estate Mortgage Shoppe and others, go to
www.JoGarner.com
Looking for a great place to work out and get back in shape? Check with the YMCA
on how to become a member. Special sign up deals running through January 2015
Go to www.ymcamemphis.org. Memphis by Johnny Rivers for the Trivia Contest
Transitional Music: 9:15 AM “Memphis In The Meantime” by John Hiatt and the Goners Released in
1987; 9:30 AM “The Memphis Train” Rufus Thomas Stax Records 1968; 9:45 AM “Nutbush City Limits”
Tina Turner (Het was de laatste succesvolle single die Ike & Tina Turner afleverden. Er verschenen nog wel enkele singles maar die
haalden de hitparades niet of nauwelijks. Nutbush City Limits werd geschreven door Tina Turner met in haar gedachten haar geboortedorp
Nutbush, Tennessee. Nutbush zelf heeft als gemeentevrij gebied geen “gemeentegrenzen”, maar inwoners van het dorp hebben wel enige
zeggenschap. Eerde Tina Turner haar geboortedorp, andersom eerde haar geboortedorp haar door een deel van de Tennessee State Route 19
naar haar te vernoemen…)
“Memphis” by Johnny Rivers for the Look Back Memphis Trivia Contest
______________________________________________________________________________
ABOUT AMOS MAKI, THE MEMPHIS DAILY NEWS:
Amos Maki has covered business and government in Memphis since 2003. A native Memphian, Maki
currently covers real estate and economic development for The Memphis Daily News.
@memphisdaily www.MemphisDailyNews.com
ABOUT TOM KING, REAL ESTATE APPRAISER WITH BILL KING CO. (901) 487-6989
___________________________________________________________________
ABOUT JO GARNER, MORTGAGE OFFICER AND CONSULTANT,
EVOLVE BANK & TRUST: (901) 482-0354 www.JoGarner.com @JoGarner
jo@192.232.195.219
Jo Garner’s Bio
www.JoGarner.com (901) 482 0354 jo@192.232.195.219 @jogarner
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.BIZ She was also the editor of Power Shoppe, a
free weekly e-zine designed for real estate professionals and others indirectly connected to the
real estate industry and currently publishes on her blog www.JoGarner.com .
For real estate financing 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 real estate, money-
saving tips and more.