Homeownership Without Breaking the Bank: Creative Ways to Make It Affordable

“Homeownership Without Breaking the Bank: Creative Ways to Make It Affordable”

“Today we’ve talked about creative ways to make homeownership affordable.

We’ve discovered that you don’t necessarily have to wait for mortgage rates to fall or housing prices to drop.

Host: #JoGarner #MortgageExpert 901 482-0354
Co-host: #AllenMcCool #memphisappraiser 901 763-5100
Featuring: #PeggyLau #ViagoTravel 901 289-0747
Subscribe for weekly Real Estate Mortgage Shoppe podcasts with show notes at www.JoGarner.com

LET’S GET STARTED…(Jo) (Good morning, Memphis! Welcome to our internet listeners and podcast listeners across the 50 states! . Today is October 10, 2026. I’m your host, Jo Garner, Mortgage Loan Originator. You can connect with me at www.JoGarner.com. Our general topic “Homeownership Without Breaking the Bank: Creative Ways to Make It Affordable”

Thank you to our sponsors real estate attorneys Rob Draughon and Shelley Rothman of Griffin, Clift, Everton and Maschmeyer Law Firm. For your home purchase or refinance title closing, call Rob and Shelley at 901 752-1133.

You don’t have to wait for mortgage rates to drop or home prices to fall to discover opportunities to make homeownership more affordable

In the studio with a helpful viewpoint from the real estate appraisal desk, we have Allen McCool, Appraiser with Stephenson and Associates.

Introducing Allen McCool, Appraiser with Stephenson and Associates

Allen McCool, our expert appraiser from Stephenson and Associates is back in the studio. Allen, after decades of appraising homes in the MidSouth, you know a thing or two about what brings the most value to a home and ways people make it work for them. (Allen McCool has about a minute and a half to intro himself and talk about the services he offers his clients )

(Jo) Have you looked at mortgage rates lately and wondered whether you can still afford to buy a home? Maybe you already own a home, but you’re wondering whether you can afford to move.

Or perhaps you’re a Realtor trying to help buyers and sellers make the numbers work.

This year we have seen mortgage interest rates climb back up to over a 1 year high to around the low to mid 7’s on a 30-year fixed rate mortgage. The bond market is a big reason for higher rates because the bond market does not like inflation and other economic uncertainties. Should you wait and see if mortgage rates drop? That is your decision because no one knows the future.

But…we can learn a lot from the past.

Some general trends we see from the mortgage desk is the see saw effect when mortgage rates move lower, more buyers run out to buy homes pushing home prices up. When mortgage rates start climbing up, home prices tend to go down. More sellers become generous, willing to pay more closing costs and money to buy down interest rates for buyers. The buyer gets to buy a home with less move-in costs and the seller gets to sell his home quicker. A nice win-win situation for everyone.

No matter what the market, here are some rules of thumb. #1 Know what you can comfortablly afford to pay per month on a house note before you ever go house shopping. Talk with your lender to determine what price range would keep you within your monthly comfort level on a payment. #2. Negotiate so that you still have an adequate emergency fund available after buying the home.

Sometimes the best deal is created through negotiation and financing rather than a lower asking price. Here is an example of a how a mortgage client and their realtor negotiated a win-win deal for both themselves the buyer and the seller too,

Listing price $400k The Bonnie and Bradley B. were trying to conserve their emergency fund but wanted to get some bragging rights on the deal too. Here is what they did:

Instead of trying to get a lower price of $390,000 on the house, they offered the full $400,000 price but asked the seller to pay $10k toward their closing costs.

Since the seller was paying for Bonnie and Bradley B’s closing the day of closing, Bradley and Bonnie realized 100% of the benefit from the seller as soon as the closing occurred because the B’s kept $10k in their emergency funds.

On the other hand, If the B’s had gotten their bragging rights because they got the house price down to $390K, but had to pay out of pocket the full $10,000 of the costs, it would take the B’s over 15 years to realize the full benefit of getting the lower price because they would only realized a savings of about $53/month for the lower price, which would take over 15 years to recapture the extra $10k they had to pay out of their own pocket in closing costs.

Bottom line: Generally speaking if you want to get bragging rights and realize the savings on those bragging rights quickly, you would buy the home at the full $400K list price and negotiate the sellers to pay the $10k you want to realized in the form of paying your closing costs. Your bragging rights fully realized happens as soon as your finish signing the closing papers and getting the house keys. But, each scenario is different depending on what you want to accomplish.

(Jo) Allen McCool, our appraisal expert with Stephenson’s & Association, what are some observations you see? (Allen has about 3 minutes until break to launch his topics)

OUTRO: You’re on Real Estate Mortgage Shoppe. I’m your host, Jo Garner, Mortgage Loan Originator. What do YOU want to accomplish with YOUR mortgage? I can make the mortgage process EASY for you with the right mortgage. Connect with me at JoGarner.com . We will be hearing more from Allen McCool, appraiser with Stephenson & Associates. Also, Peggy Lau, retired US Navy Line Commander and representative of Viago Travel will be joining us when we come back. Stay tuned.

2nd segment is after first break 8 minutes 50 seconds

( Waaka Waaka song in background ) COMIC QUERIES (you probably already know the answer, but we will ask anyway

(Allen) Riddle: I just bought a historic four-bedroom home with stunning original brickwork, an expansive wraparound porch, and beautiful mature trees—all without taking out a single loan.
How did I manage to afford it?
(Jo) Answer: I bought a LEGO set and built a miniature lego house.

(Jo) Riddle # 2: “I’m something every homebuyer hopes to get.

The seller hopes I never happen
The Realtor hopes I don’t cause trouble.
And here’s the irony: The more things wrong with the house, the more valuable I become to the buyer!
What am I?
(Allen) 😂 Answer: THE HOME INSPECTION!

(Jo) Today on Real Estate Mortgage Shoppe we are talking “Homeownership

Without Breaking the Bank: Creative Ways to Make It Affordable”

I’m your host, Jo Garner, Mortgage Loan Originator . For your home purchase or a mortgage refinance you can brag about,. We can find the right mortgage product and make the mortgage process EASY on a traditional mortgage, on special programs and outside-of-the-box mortgage programs too. Connect with me at JoGarner.com

Allen McCool, Appraiser with Stephenson & Associates 901 763-2100

T ALK SHOPPE TIP

PEGGY LAU, RETIRED U.S. NAVY LINE COMMANDER & REPRESENTATIVE OF VIAGO TRAVEL 901 289-0747

It’s time to talk shop with Talk Shoppe’s Tip . 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 Tip today we have Retired U.S. Navy Line Commander and representative of Viago Travel, Peggy Lau in the studio. Peggy, you have seen a lot of the world during your days serving in the Navy. But, you have also seen the world on some first-class vacations paying bargain prices. (I know because you took a friend of mine and me on a Caribbean cruise at a bargain price just to show us how it is done) You truly get joy showing others how they can make the greatest memories traveling with their loved ones but not having to spend a lot of money. Peggy Lau of Viago Travel , what is our Talk Shoppe Tip today?

Peggy offers her tip (about 1 minute):

Observe other people around you and determine their personality type. Once you know the other person’s personality type you can be more effective in communication with them. Some people prefer you jump in and make your point without wasting time. Others prefer to get to know you a little bit, They want to ask questions and analyze their options. Make sure your communication is geared toward the other person.

TOPICS BY ALLEN MCCOOL, APPRAISER WITH STEPHENSON & ASSOCIATES

In an environment where affordability is top of mind, considerations of value are more important than ever.

Many factors are out of our control, such as prevailing interest rates, inflation rates, etc.

The key is to concentrate on what you can control, including the planning and execution of an informed real estate purchase, when and where it works for your life goals.

Historical real estate value changes can be researched from an abundance of available data. Cross-referencing that locational data with your housing needs can lead to a plan that benefits you over a long-term period.

Finding the right property for you can be both an enhancement of your lifestyle and a fruitful financial move.

Appraisers analyze the real estate market by associating specific characteristics of homes with their effect on sales price. The characteristics we observe include locational aspects, as in proximity to employment and amenities, as well as physical items, such as living area and outdoor space. The effects we observe are an aggregate of individual preferences.

The key for a purchaser is to find where your preferences intersect with the market preferences. The reason for this research is to evaluate the long-term prospects for investing in your housing needs.

You may find you have a mix of typically-demanded items, such as sufficient bedrooms and baths for a growing family, and personal preferences, such as a swimming pool or detached workshop / studio.

The typically-demanded items are likely to appreciate over time, while the personal preferences may be features for which the aggregate of future potential buyers do not provide a return on investment. These outcomes vary by location, of course. Also, there are some specific preferences that you may want to accommodate regardless of future return, as you simply enjoy or need the benefit.

More questions for Allen:

Are you seeing different trends in Memphis compared with Bartlett, Germantown, Collierville, and North Mississippi?
What makes one $300,000 house a better value than another $300,000 house?
What should buyers do if the appraisal comes in below the contract price?

“Some people are afraid to buy because they think housing prices are about to crash.
Others worry that if they wait, prices will keep rising and they’ll never be able to afford a home.
So what’s really happening?”
Are home values in Memphis and the surrounding suburbs increasing, decreasing, or leveling off?
Are you seeing more price reductions?
Are houses sitting on the market longer?
Which property characteristics are helping homes hold their value?
Are buyers getting better opportunities to negotiate?
Is it possible for one neighborhood to experience declining values while another nearby neighborhood continues appreciating?

3^RD SEGMENT 12 minutes

( Small Victories song by Allen McCool playing in background)

For Did You Know today…(see if you can guess the answer before we do)

(Jo) What is the name of this post Civil War era Memphian who, despite seemingly impossible odds, became the first black millionaire in the South using unmatched ingenuity?

(Allen) Hint #1: When the devastating Yellow Fever Epidemic hit Memphis in the late 1870s, it cleared out a vast majority of the population and caused local real estate values to completely crash. While others panicked and abandoned the city, this man saw an opportunity that would otherwise be entirely unaffordable and unattainable for an African American man at the time.

(Allen) Hint #2: He creatively used his modest savings from a local saloon to buy up drastically devalued real estate along Beale Street. His massive bet on the future of Memphis paid off exponentially. He built an unrivaled real estate empire.

(Peggy) Answer: Robert Reed Church, SR.

(Jo) Today on Real Estate Mortgage Shoppe we are talking “Homeownership

Without Breaking the Bank: Creative Ways to Make It Affordable”

Allen McCool, Appraiser with Stephenson & Associates 901 763-2100

Peggy Lau, Viago Travel 901 289-0747

TOPICS COVERED BY JO GARNER, LICENSED MORTGAGE OFFICER

WAYS TO MAKE YOUR HOME PURCHASE MORE AFFORDABLE

Two most common financing types that can make the home purchase more affordable especially for first-time homebuyers.

State bond programs that offer down payment assistance along with a lower-than-market rate. In Tennessee we have the Tennessee Housing Development Agency, Mississippi has several progams.

Also trending is the FHA 5-1 Adjustable Rate program. This mortgage starts with a lower interest rate than market, making the payment more affordable. This rate is fixed for the first five years. When it converts to an adjustable rate mortgage, there are tight safety caps that prevent the rate from jumping too high.

Interest Rate Buydowns

Let’s go back to the example of Bonnie and Bradley B. They wanted to get some bragging rights on negotiating the deal on buying their home. They negotiated a deal that turned out to be a win-win for the buyer and seller. Instead of simply trying to get the price $10k lower than the list price, the B’s offered the seller the full list price $400k. But, they asked for the seller to pay $10k in buyer’s closing costs. The B’s realized the full value of the $10K seller concession the moment they finished signing closing papers and getting the house keys. However, if they had simply bought the house for $10k lower than the list price, it would take them about 15 years to realize the full $10k savings because they would have paid $15 less per month for financing and it would take over 15 years to realize their $10k lesser price at $53/month.

But, what if Mr. and Ms. B wanted to get their bragging rights on a lower payment instead of saving on closing costs? They could have negotiated the sellers to pay for a 2-1 buydown to get the mortgage interest rate 2 whole points below the market rate the first year-like around 4.99%. The rate would go up one point to about 5.99% the 2^nd year and at year 3 and for the rest of the term the rate would stay at the real rate of 6.99%. What is they asked the seller to pay approximately $6,000 for the 2/1 rate buydown and $4,000 toward their closing costs (Totaling the $10k in seller concessions)

Since the B’s were in careers where their income tended to go up annually, starting out with a principal and interest payment at the starting rate of 4.99% would allow them to enjoy a payment about $410 per month less than they would have paid without the seller paid 2-1 Rate buydown. The second year, when the mortgage rate steps up one more point, the B’s would enjoy a mortgage payment about $211 per month less than what they would have been paying without the seller paid rate buydown. The 3^rd year and onward the B’s would be back to paying the market rate they locked on day one. But over the first two years they would have enjoyed paying about $7,400 less in payments. The seller paid $4,000 in additional closing cost so the B’s would realize the $4k savings in closing costs the day of closing. Over the next two years they would save the $7400 in lower monthly payments.

Don’t worry if this sounds a little complicated. When you are ready to buy a home, call me and with answers to a few questions we can nail down a couple of financing scenarios that will give bragging rights. Connect with me at JoGarner.com

Step up Home Example

MR. FIX-IT TAKES ONE STEP AT A TIME TOWARD HIS DREAM HOME

Meet Ricky. Ricky is barely out of his twenties and wants a shop next to his house so he could work on cars and fix stuff. He also wants to be in a particular upscale neighborhood. His dream house was like having champagne taste on a beer budget. Ricky engages his imagination and some ingenuity.

He found a house in a neighborhood that was going steadily up in value, even though it wasn’t the upscale area he initially wanted. The property had a garage. This house would not break the bank for Ricky. Ricky took action with a smart offer and beat out any competition to buy his house. Over time he transformed the garage into an awesome shop by installing a work bench and later some racks for his tools. The house was going up in value too. Ricky would one day be able to sell the smaller home or rent it to tenants and use the money to launch from this home up to the more upscale neighborhood he originally wanted.

How to Buy At a Lower Price but Get a Good House

Some of my clients bought a home at a below market price that was in good condition but had not been updated in several years. The price was lower because the bathrooms and kitchen had not been updated. Since the house was in good condition without needed repairs, it was easy to get an affordable mortgage. (The customer could buy the home and gradually over time update and upgrade it as they could afford it)

Buying a Fixer-Upper at a Low Price Using a Renovation & Repair Loan

Buy a fixer upper using a Renovation and Repair loan (you will need to use a licensed contractor to do the work and the mortgage costs are higher)

Buy a House That Pays You To Live There

Buy a home with an separate area that can be rented out to a tenant. A common example is a home with a bonus room upstairs where the tenant uses the door to the garage to go in and out instead of through the main house. Extra income from renting the extra room can help you more than cover the mortgage payment.

Move your business to your home to save on paying for commercial rental space elsewhere.

Do you love gardening? Grow enough produce to sell.

Do you own land that can legally be subdivided and sold to a developer for building infill homes?

Word to the Wise: Start with the Payment to Determine Your Affordable Price

Once you know the maximum monthly payment that you can personally afford, you can work with the lender to calculate the price ranges that fit your comfort level on a monthly payment.

Call or text me at 901 482-0354.

In Summary:

“Today we’ve talked about creative ways to make homeownership affordable.

We’ve discovered that you don’t necessarily have to wait for mortgage rates to fall or housing prices to drop.

You can explore different mortgage programs, negotiate closing costs, consider alternative properties.

And here’s the most important thing I want you to remember:Don’t just ask, ‘Can I afford this house?’ Ask,

‘Will this house and this mortgage help me afford the life I want?’

MAKE YOUR PLAN. LET’S WORK YOUR PLAN. IF THE DEAL WORKS FOR YOU TODAY, LET’S DO IT TODAY. I can make the mortgage process easy. Connect with me at www.JoGarner.com You can email me at Jo@JoGarner.com or call me at (901) 482-0354

4^th Segment 8 minutes and 50 seconds

(THE SONG UpBeat Inspirations PLAYING IN BACKGROUND ) INSIGHTS & INSPIRATIONS

Attain the Unattainable and Make It Affordable

In the 1980s, a young entrepreneur had a dream that seemed financially impossible.

He wanted to buy the very company where he had once worked.

The asking price? Nearly four million dollars!

He didn’t have that kind of money. And convincing banks to believe in his vision was no easy task.

But instead of giving up, he found several people who believed in his dream and brought their financial resources together to make the dream come to life.

In 1987, he successfully purchased the company for approximately $3.8 million.

That company would eventually grow into one of the world’s most recognizable brands and at one time was said to be worth over $100 billion dollars.

The entrepreneur was Howard Schultz, and the company was Starbucks!

The lesson? Sometimes the difference between what you can afford and what you can achieve is finding a creative way to finance your dream!

Do you want to buy a home, but you think you can’t afford it? The key may in the financing. It may be that you need to start smaller and work steadily toward the bigger dream. Tell me your story and let me be your lender. Let’s find ways to make your dream attainable and affordable. Call or text me at 901 482-0354 or go to JoGarner.com

(Jo) Today on Real Estate Mortgage Shoppe we are talking “Homeownership

Without Breaking the Bank: Creative Ways to Make It Affordable”

Allen McCool, Appraiser with Stephenson & Associates 901 763-2100

Peggy Lau, Viago Travel 901 289-0747

REAL ESTATE TIP OF THE WEEK

Peggy Lau’s Tip #2 (about 1 minute)

Pay attention to the 5 people who are closest to you. You become like the closet five people around you.

Allen McCool’s Tip (about 1.5 minutes)

Start with the end in mind. Visualize how you want to your house to look. Imagine yourself walking out to your backyard, drinking a beer and enjoying your life. Since you don’t even own this house yet, you have to put together a plan and work the plan that will give you the down payment, the stable income to pay for a house like that.

Jo Garner’s tip :

Even if you are not ready to buy a home yet, if it is in your plan, let’s go ahead and start putting some financing scenarios together to support your plans. Connect with me at www.JoGarner.com (901) 482-0354

ANNOUNCEMENTS:

Talk Shoppe equips with education, engages by offering connection opportunities between business people and empowers businesses in a supportive community. Talk Shoppe meets every Wednesday 9A-10A CT at Breadie’s Café; inside One City Church 120 N East Yates Rd Memphis, TN. One City Church is committed to proving love works in Memphis and beyond. (Thank you to Breadie’s Café for being Talk Shoppe’s location sponsor..)

Talk Shoppe on Wednesday October 14^th, 2026 9AM CT “Linkedin For Business: Your Digital Brand” Robin Tucker, Wilson Consulting,LLC

Thank you to Ed Hill of Masters Roofing for supporting the business and real estate community with your Talk Shoppe sponsorship. Do you need a professional roofer to assist you with a roof inspection? A roof repair or replacement? Call Ed Hill of Masters Roofing 901 273-6594.

Congratulations to Redeemers Structural Solutions for your successful open house this past week at 8000 Horizon Center in Memphis. For your crawlspace, concrete and foundation repairs on your home or office contact Redeemers Structural Solutions at www.RedeemersGroup.com

MAKE YOUR PLAN. LET’S WORK YOUR PLAN. IF THE DEAL WORKS FOR YOU TODAY, DO IT TODAY.

Subscribe for weekly Real Estate Mortgage Shoppe podcasts with show notes at www.JoGarner.com

SPECIAL NOTE: REAL ESTATE MORTGAGE SHOPPE DOES NOT ENDORSE 100% OF THE CONTENT ON THIS EPISODE. 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, AND NOT AN OFFER TO LEND. EXAMPLES GIVEN FOR ILLUSTRATION PURPOSES ON REAL ESTATE MORTGAGE SHOPPE AND MOST ARE BASED ON TRUE STORIES BUT WE USE FICTIONAL CHARACTERS AND DO NOT DIRECTLY REFLECT REAL PEOPLE OR EXACT DETAILS IN ANY OF THE SITUATIONS. JO GARNER IS A LICENSED MORTGAGE LOAN ORIGINATOR. (EQUAL HOUSING OPPORTUNITY)

(The Auditory version of this disclosure is played during the show)

QUOTE CORNER: “You are buying a home whether you want to or not. You have to decide if you’ re going to buy one for yourself or if you will continue buying one for your landlord.” Anonymous

REJOINDERS:

Silvana Piadade, EXP Realty 901 647-6661
Christine Wood of OPUS Elegant Memory Care Memphis, TN (901) 587-7100
Rob Draughon and Shelley Rothman of GCEM Law Firm 901 752-1133

Transitional Music: First Segment “WAAKA WAAKA” (PD) for Comic Queries; “Small Victories” by Allen McCool allenmccool.com for Did You Know segment; “Upbeat Inspiration” by Ikoliksaj for Insights and Inspiration segment.

INTRO AND OUTRO THEME MUSIC “Country Roads” by Sergie Pavkin

PICK UP YOUR COPY OF “CHOOSING THE BEST MORTGAGE-THE QUICKEST WAY TO THE LIFE YOU WANT” by: JO GARNER

An essential guide for real estate professionals and their customers.

On Amazon and Barnes and Noble

______________________________________________________________________________

ABOUT ALLEN MCCOOL, APPRAISER WITH STEPHENSON & ASSOCIATES

Allen McCool is a real estate appraiser with Stephenson and Associates. Holding the SRA designation from the Appraisal Institute, Allen has appraised residential property in Shelby County, TN for over 35 years, serving a variety of clients, including lenders, attorneys, and individuals. Allen applies a wealth of knowledge and analytical skill to each assignment, provides clarity in reporting results, and is a reliable provider of solutions to challenging real estate problems. 901 550-2100

ABOUT JO GARNER-MORTGAGE LOAN OFFICER:

www.JoGarner.com (901) 482 0354 jo@jogarner.com X @jogarner NMLS# 757308 (currently working with Everitt Financial dba Supreme Lending)

ONLINE LOAN APPLICATION : https://jogarner.supremelendingLO.com

“Whatever YOUR personal priorities are, my job is to help you get the mortgage terms that will give you bragging rights when you talk about it and help you score on hitting your goals .”

As a mortgage loan officer, my job is to help you get to the benefits you want from your financing terms. What is most important to you? I can help you find the financing terms that will help you get to what you want. What is your comfort level on a house payment? How much are you comfortable paying down,? What type of financing do you need to get the house you 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.”

Jo Garner is a mortgage officer with extensive knowledge in helping her clients find the right mortgage program and making the refinance or home purchase mortgage process EASY. She offers conventional, FHA, VA or other loan programs for primary residences, second homes and investment properties.

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 30 years. She grew up in West Tennessee and got her start in real estate 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 30 years.

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 Garner also host the radio show Real Estate Mortgage Shoppe airing on the Mighty 990 AM, 107.9 KWAM & streaming on the app https://mighty990.com/app with podcasts and show notes published on www.JoGarner.com Pick up Jo Garner’s book on Amazon or Barnes Noble “Choosing the Best Mortgage-The Quickest Way to the Life You Want”

Homeownership Without Breaking the Bank: Creative Ways to Make It Affordable

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