Buying The Right Home And Getting The Right Mortgage Terms–Invest In Your Lifelong Dreams Right Now
Tom will be sharing some wisdom as an experienced appraiser on determining value on a home, trends in a neighborhood, when it pays to update and add space and when it doesn’t. I will be sharing some rules of thumb on choosing the right mortgage terms. And we have a special guest today, Lee Ann Foster from Memphis Neurofeedback Institute who will offer some suggestions on how to overcome procrastination and start pursuing the things that are important to you.
So glad you stopped in to visit us at Real Estate Mortgage Shoppe. We want to help you find solutions for your real estate scenarios. If you do not find the answers you are seeking from our blog posts or podcasts, please feel free to call me personally at (901) 482-0354 or email me at jo@192.232.195.219 Please subscribe to our regular blog posts with embedded podcasts. We would like to stay in touch with you.
To Your Success,
Jo Garner, Mortgage Expert
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Good morning, Memphis! Welcome to our 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 Our general topic is “Buying The Right Home And Getting The Right Mortgage Terms-Invest In Your Lifelong Dreams Right Now “
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 September 3rd, 2016 at (901) 535-9732 or outside the Memphis area (800) 474-9732 Right now is the time to MAKE YOUR PLAN, WORK YOUR PLAN. IF THE DEAL WORKS FOR YOU TODAY, DO IT TODAY.
Tom King will be sharing some wisdom as an experienced appraiser on determining value on a home, trends in a neighborhood, when it pays to update and add space and when it doesn’t. I will be sharing some rules of thumb on choosing the right mortgage terms. And we have a special guest today, Lee Ann Foster from Memphis Neurofeedback Institute who will offer some suggestions on how to overcome procrastination and start pursuing the things that are important to you.
You will be happy to know we have back in the studio, Tom King, experienced appraiser, avid sky-diver, sports enthusiast, history buff, collector of old songs and just an all-around fun guy. <Tom introduces himself and what he does as an appraiser- >
(Jo) And as a special treat to our Real Estate Mortgage Shoppe listeners, we were able to convince Lee Ann Foster of Memphis Neurofeedback to venture into our studio this morning with Tom and me in the same space—I’m sure the neuro brain wave registers are spinning wildly about now. Seriously, Lee Ann Foster has been doing some outstanding work at Memphis Neurofeedback improving the lives of patients who have suffered from stroke, memory loss, children struggling with symptoms of ADHD and just people like me who need to break out of some bad habits into some good habits. <Lee Ann Foster introduces herself and what she does at Memphis Neurofeedback>
(Jo) Right now the mortgage market is staying in its 2-month long sideways trend with the jobs report and wages looking less than stellar. Mortgage rates ended yesterday around the mid to high 3’s on the 30 year fixed conventional loans, the 15 year coming in around the high 2’s to low 3’s. Mortgage rates can vary depending on the loan amount, loan type, loan-to-value and credit scores. The winners in this market are the people who can get their real estate purchase offer accepted. Inventory on homes for sale is low, making competitive bidding wars more common. Other winners in this market are homeowners who can lower the interest expense significantly by refinancing or restructuring their existing mortgages. Some homeowners want to lower the payment by a few hundred dollars a month, others want to eliminate 10 or more years off the mortgage term and others are pulling cash out and investing to make an even bigger financial return.
<Tom King makes comments
(Jo) We’re seeing a fast market right now. Don’t get caught on the sitting on sidelines when you could be locking in some very low fixed rate money buying a home or refinancing one . But the first rule in picking the right mortgage, is making sure the monthly payment is comfortable for you, giving you some breathing room each month. Some of the financial experts say the total mortgage payment ideally should be between 25% and 35% of your gross income including the taxes and in the insurance, mortgage insurance and, in some cases, the association fee. But don’t forget about your other monthly obligations like your car note, student loans, and credit cards. With your new house note AND all of your other debts, you can find advisors out there telling you to keep your total debt, including the house payment under 40% to 45% of your gross income. And I have seen a surprising number of students getting out of college with over $100,000 in student loan debt. If you’re trying to get a mortgage, you need to look into consolidating your student loans and getting a payment plan that will allow you to qualify for a reasonable payment on your home. Mortgage underwriting software, computers, if the borrower has great credit and lots of cash reserves, will approve a mortgage with debt ratios as high as 55% of gross income. That’s pretty high. What’s important is that you choose a mortgage with a monthly payment, probably much lower, that will be comfortable for you, regardless of what the mortgage software says. Computers aren’t always right.
<Tom comments (might give your warning about every appraisal comp not being a correct reflection of the true market like irregular sales and internet value websites etc
(Jo) Tom, we’re talking about buying the right house, getting the right mortgage, right now. Sounds like this is not time to get caught in the procrastination trap. On our past shows you have talked about the best time and the 2nd best time to plant a tree or buy and house and start building wealth. What’s that saying again?
<Tom shares Pastor Roger’s saying about the best time to plant a tree (the best time to buy a house….> The best times to plant a tree is 25 years ago and this afternoon.
(Jo) Procrastination is one of the deadliest habits that destroy business ideas, life-long dreams and even family relationships. Lee Ann Foster, MS with Memphis Neurofeedback is in the studio to share some insight on how to change a bad habit like procrastination.
<Lee Ann Foster launches her advice about how to overcome the habit of procrastination>
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2nd segment after 9:15 break: Our Look Back Memphis Trivia Contest is brought to you by notable Memphis historian, Jimmy Ogle. Jimmy Ogle offers free historic walking tours downtown in the spring and fall. For information about Jimmy Ogle, go to www.JimmyOgle.com . The Look Back Memphis Trivia Contest is sponsored by John and Jennifer Lawhon of Lawhon Landscape (901) 754-7474 the Lawhon’s can help you plan your landscaping if you have a BIG, BIG project or a smaller project . The Lawhons are giving away a $25 gift card to the first person with the correct trivia answer. If you know the answer to our trivia question, call us at 901 535 WREC 901 535-9732.]
[Trivia Answer: ] Orange Mound
TRIVIA QUESTION: Question: I am one of the more renown neighborhoods in Memphis. Who am I?
[TRIVIA HINTS] Hint: I have a very rich tradition in basketball and music history in Memphis.
Hint: I have six church congregations that are 100 years or older – the only such neighborhood in America.
Hint: I was the first subdivision in America set aside of African-American home ownership.
Final Hint: My name comes from the planting of a certain color and type of shrubbery.
Answer: Orange Mound. Orange Mound, a neighborhood located in southeast Memphis, Tennessee, was the first African-American neighborhood in the United States to be built by African-Americans. Built on the grounds of the former Deaderick plantation, the Orange Mound subdivision was developed for African-Americans in the 1890s to provide affordable land and residences for the less wealthy.
Orange Mound is bounded by Semmes St. to the east and by Kimball Avenue to the south. The Southern Avenue/IC Railroad tracks on the north separate it from the Belt Line, Midtown and University Districts, while Lamar Avenue on the southeast and the CN Railroad tracks (visible at Park Av. & Lamar) on the southwest both separate it from Bethel Grove, South Memphis and the East Parkway District.
Memphis’ favorite basketball player, Larry Finch, was a graduate of Melrose High School in 1969.
Jimmy Ogle gives free outdoor walking tours on the sidewalks and parks in Downtown Memphis during the Spring and Autumn of each year, with the next Tuesday Tour being on Jefferson Avenue at 11:45am on Tuesday, September 6 at Main/Jefferson and the Union Avenue Manhole Cover and History Tour at 11:45am on Tuesday, September 20 at Front/Union..\The D’Army Bailey County Courthouse Tour (indoors): one Thursday each month at 12:00 noon – the next being Thursday, September 15. Go to jimmyogle.com for more information.
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QUESTIONS ANSWERED BY GUEST-Lee Ann Foster
1. WHAT IS PROCRASTINATION AND HOW DO WE BEAT IT?
Procrastination is a habit and as with any habit you want to change, the key is understanding some things about yourself.
Procrastination is basically a habit of giving into temptations to maximize short term pleasure and minimize short-term pain or discomfort.
On the other hand, Persistence is the habit of acting in ways that might cause you some short term discomfort, but will increase the odds that you achieve your long term goals. People with the habit of persistence are willing to endure short term discomfort in order to maximize long term pleasure and fulfillment.
Here are a few things to think about in order to help yourself turn a procrastination habit into a persistence habit:
A. Get clear on whether or not the thing you’re avoiding now could actually contribute to you achieving your long term goals.
Research shows that people who get really clear about, and actually write down how their present day behaviors are either helping them or hindering them from achieving their long term goals are much more likely change their behavior in order to achieve their goals.
So that thing you’re putting off – that property you’re him hawing about purchasing – get clear in your mind about whether buying it NOW will help you achieve your long term goals.
B. The second thing that really differentiates those who achieve their long term goals from those who don’t is that the achievers get really honest about the temptations they fall prey to. They actually make plans on how they’re going to avoid the things that tempt them to cave into short term pleasure and sacrifice their long term goals on the altar of the elusive and uncertain tomorrow.
The achievers refuse to be naïve about the cost of giving into temptation. Instead, they make a plan to protect themselves from the short term mindset so they will stay motivated to work for their long term good.
So just take a moment and write down
1st: – how will purchasing a property now contribute to your long term goals?
2nd: – if purchasing now is helpful for your long term goals, what are the things that are most likely to tempt you to put that off? And how can you plan to protect yourself from those short-term pleasure temptations and do the thing that is best for your long term goals?
Lee Ann Foster answers the question about what causes the habit of procrastination and what things tend to tempt people to procrastination.
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QUESTIONS ANSWERED BY TOM KING:
1. Describe the mortgage firewall between appraisers and lenders
2. Describe the types of appraisals you do that are not affected by the firewall. (Tell some short real life stories to describe the other types of mortgages you do for relocation companies, estate sales, divorce settlements involving real estate, cash deals where the buyer is paying cash for a house, and more)
3. What are some tips you can share about how to determine value trends in a neighborhood? What are signs you look for to tell you if the values on homes in a neighborhood on going up or down?
4. What type improvements or upgrades to a house add the most value the quickest? Warning about overbuilding.
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QUESTIONS ANSWERED BY JO GARNER:
1. What are some common rules of thumb you share with your clients about choosing the right mortgage?
A. The first rule of thumb is to make sure the total house payment, including the taxes and insurance and association fees or mortgage insurance fits comfortably in your budget. It is no fun living in a house where you can’t sleep at night worrying about how you’re going to make the payment. There are some outside of the box ways to solve that problem, or at least make it better.
B. If you are on a fixed income, consider strongly getting a fixed rate mortgage. In a case like the retired couple in my office who wanted to go ahead and close on the new home but they had not sold their old one yet, we looked at several angles. They ended up deciding to go ahead and buy the new house so it would not get away and it was pretty clear their old house which was paid off would sell within less than a year. There were multiple options for methods they could get the best mortgage terms for this situation. One of the most common methods in a situation like this is to get a bridge loan line of credit against the old house that is free and clear to use for a large down payment on the new house. This line of credit is usually prime plus a percentage and only requires interest only payments for the first part of the loan. Of course, the plan was, for the couple in my office, when the old house sold, the bridge loan line of credit would be paid off on the old house and my clients would enjoy the very small payment on the new home since they used the bridge loan on the old house to make the huge down payment.
C. The second rule of thumb and getting the right mortgage terms is to keep adequate emergency funds available at all times. No one knows the future but everyone should be prepared for the unexpected. Pay only the amount as a down payment that will allow you to keep money available in case of emergencies. If you are short funds to manage this, let’s talk. There are multiple types of down payment assistance programs available around the country. You may be able to get a gift from a family. You may have cash value on a life insurance policy you didn’t even know existed. You may be able to borrow against your 401K or we could talk about a private asset equity loan secured on stocks and bonds. Call me off the air and we can get my gold mining shovel out and start digging around. You may be surprised where we can find down payment funds for you. Call me after the show personally at (901) 482-0354. (901) 482-0354 or email me at jo@192.232.195.219
D. The third rule of thumb is to make sure the mortgage fits the property. If the real estate ad says “handy man’s special” and if you see the property and it needs a new roof, a new heating and air system or it has rotted wood and plumbing or electrical that doesn’t work –obviously more than $5,000 dollars of work to be done—you probably need a renovation and repair loan and NOT a traditional mortgage. Call me and we can talk about how this could work for you.
2. What type mortgages are available for real estate investors?
A. Fannie Mae will allow a real estate investor to get a traditional mortgage with a minimum of 20% down if the investor owns LESS than 10 financed properties. They can own more than 10 properties –just not financed properties. Real estate properties with over 4 units or businesses are not counted against them as financed residential properties. The advantage to using the traditional mortgage for investors who want to keep the property for a few years is that the rate is usually fixed for up to 15 or even 30 years, giving the investor a bigger chance of maintaining a nice positive cash flow on the rental property.
B. Here’s a really popular little niche loan that will help real estate investors get the money back really quickly without having to wait out the 6 months seasoning time. If a real estate investor wants to pay cash for a house or uses a credit line secured on something else other than the house he is buying, there is a 30 year fixed rate loan available for that investor to refinance the rental property he just bought and get the cash back quickly as long as he has not owned the property for over 6 months. There is not seasoning on this quick cash back loan. The limit on the loan is 75% of the appraised value or the amount of money the investor paid for the property when he bought it—whichever is less. There are a hosts of other methods for real estate investors to get funds to buy houses. Call me personally at (901) 482-0354 and we can talk about your specific scenario. Or you can call us while we are live September 3rd, 2016 and we can talk about your deal right now.
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REAL ESTATE TIP OF THE WEEK (Tom King shares tip about being careful to not OVER BUILD for the neighborhood. If you want to add to your home or upgrade your home, some additions and upgrades will not add market value to your home if your home is not comparable to the other homes in your neighborhood. ):
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ANNOUNCEMENTS:
Talk Shoppe offers free networking & education to anyone interested in real estate or in business. Talk Shoppe meets every Wednesday 9A-10A CT at the University of Phoenix 65 Germantown Court 1st floor Cordova, TN. This Wednesday September 7th, 2016 Talk Shoppe presents: “WHAT TO EXPECT WHEN WE’RE INSPECTING A HOUSE.” by Matt Beickert, Amerispec Mid South, 901-725-9988 Amerispec.net/MidSouth
Talk Shoppe events are free thanks to sponsors/advertisers/supporters like Kim Hummel, Creative Director of Sauce Marketing www.saucememphis.com Throw a little sauce on marketing YOUR business. And thanks to advertisers like Angela Brady of Republic Roofing abrady@republicroofing.com Republic Roofing and Restoration can repair or replace Roofing systems on commercial and residential properties as well as water damage, fire and mold.
3. Lee Ann Foster of Memphis Neurofeedback announced a special study and some free treatment for children under the age of 17 with autism or Asperger syndrome. Contact Lee Ann at www.memphisneurofeedback.com for more information
4. SPECIAL NOTE: REAL ESTATE MORTGAGE SHOPPE RECOMMENDS THAT YOU CONSULT WITH THE PROPER LICENSED, CERTIFIED FINANCIAL ,LEGAL OR OTHER ADVISORS BEFORE ACTING ON WHAT YOU HEAR OR SEE FROM THE CONTENT ON THIS SHOW. THE INFORMATION WE SHARE ON REAL ESTATE MORTGAGE SHOPPE IS GENERAL IN NATURE MEANT FOR GENERAL EDUCATIONAL PURPOSES ONLY.
5. FOR THIS PODCAST OF REAL ESTATE MORTGAGE SHOPPE AND MORE, GO TO JOGARNER.COM
6. Real Estate Mortgage Shoppe reminds you that IF THE DEAL WORKS FOR YOU TODAY, DO IT TODAY.
QUOTE CORNER: “Even if you’re on the right track, you’ll get run over if you just sit there.” Will Rogers
“Whatever you want to do, do it now. There are only so many tomorrows.” Michael Landon
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REJOINERS:
Katie Gilliland, BackupRX www.backuprx.com
Gwen Christensen, Builders Floors and Interiors www.buildersfloorsandinteriors.com
Pat Goldstein, Crye-Leike Realtors (901) 606-2000
SPECIAL NOTE: REAL ESTATE MORTGAGE SHOPPE RECOMMENDS THAT YOU CONSULT WITH THE PROPER LICENSED, CERTIFIED FINANCIAL ,LEGAL OR OTHER ADVISORS BEFORE ACTING ON WHAT YOU HEAR OR SEE FROM THE CONTENT ON THIS SHOW. THE INFORMATION WE SHARE ON REAL ESTATE MORTGAGE SHOPPE IS GENERAL IN NATURE MEANT FOR GENERAL EDUCATIONAL PURPOSES ONLY.
Transitional Music: “Right Here, Right Now” by Jesus Jones; “To Morrow” the Muppets; Right Now by Van Halen; “Memphis” by Johnny Rivers for Look Back Memphis Trivia contest
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ABOUT LEE ANN FOSTER, MEMPHIS NEUROFEEDBACK
Lee Ann Foster, MS, Co-Owner of Memphis Wellness Coach, Neurofeedback Technician, Licensed HeartMath Provider.
Lee Ann has worked in the helping professions for over 20 years in corporate settings and private practice. She specializes in helping people know themselves better and overcome obstacles in overcome obstacles in order to live healthy, fulfilling lives.
Lee Ann Foster, MS, Co-Owner of Memphis Neurofeedback, LLC, Wellness Coach, Neurofeedback Technician, Licensed HeartMath Provider.
(901) 624-0100
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ABOUT TOM KING
Tom is a well- respected and sought after appraiser in Memphis, Tennessee. He is a second generation appraiser with 40 years experience. He has been elected to the Memphis Area Association of Realtors Board of Directors three times.
Tom is a certified residential appraiser in Tennessee. He have appraised over 20,000 homes in his career. A graduate from the University of Tennessee with a degree in real estate, Tom is also a Certified Relocation Professional (CRP). Tom also has vast experience in dealing with the county and state boards of equalization and in valuations of property for tax appeal purposes. (901) 487-6989
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ABOUT JO GARNER-MORTGAGE LOAN OFFICER
www.JoGarner.com (901) 482 0354 jo@192.232.195.219 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 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