Finding Your Pot of Gold—Digging For Gold From Your Home & Your Mortgage
Thanks for stopping by for a visit. We appreciate our visitors and welcome you to call into our show while we are live or submit to us your questions or suggestions at jo@192.232.195.219
During our time together we will be talking about how to avoid a low appraisal on your home if you are trying to sell it or refinance it. We will be talking about how to pack your pockets with more money when structuring or restructuring your mortgage. Where should you spend your money for the highest return on investment when preparing your home to get the highest value? Want to know some tips on how to get rid of your mortgage sooner for the least investment? Find out later in this 3-12-16 show.
______________________________________________________________________
Good morning, Memphis! Top of the morning to ya’ in the 50 states across America. 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 Today’s general topic is Finding Your Pot of Gold—Digging For Gold From Your Home & Your Mortgage During our time together we will be talking about how to avoid a low appraisal on your home if you are trying to sell it or refinance it. We will be talking about how to pack your pockets with more money when structuring or restructuring your mortgage. Where should you spend your money for the highest return on investment when preparing your home to get the highest value? Want to know some tips on how to get rid of your mortgage sooner for the least investment? Find out later in this show.
Today co-hosting Real Estate Mortgage Shoppe is one of MY favorite people—Tom King, very experienced appraiser with Bill King Co, an accomplished sky diver, a lucky, swashbuckling, all-around good guy. Tom, how did you like your introduction?
⦁ (Jo) As a mortgage loan officer, every day I help people uncover that pot of gold by digging into the details just a little more diligently. Have you ever heard the old saying, “Luck Is What Happens When Preparation Meets Opportunity? ” What is the maximum house payment that’s comfortable for you today? Are there any lifestyle or career changes coming up that you feel would change your answer? The mortgage is probably going to be around a while. Let’s make it work for you. Mortgage rates are still good but frequently inching up to now the highest since January 2016. 30YR FIXED – 3.75-3.875%; FHA/ the 100%VA and 100% Rural Housing loans are a little lower. 15 YEAR FIXED – low 3’s. If you are shopping for a Jumbo loan, call me and let’s look at 90% loan-to-value with no private mortgage insurance and rates in the 3’s. You can still find the pot of gold at the end of the rainbow, but with stocks and the price of oil going up this week, it is bringing up the price of mortgage rates too. If you or someone you know needs to lock in a low rate with low payments on a home purchase loan or refinance here in the Memphis area or anywhere in the country, contact me directly at (901) 482-0354 (901) 482-0354 or email me at ⦁ jo@192.232.195.219 or find me on the web at ⦁ www.JoGarner.com
(Jo) We’re talking about how to pack out pockets with gold from our mortgage. Here’s an example of why you want to dig a little deeper for the real mother lode. I had a client call me this week. He owned his current home free and clear and, logistically, it was going to be difficult to sell his current home until AFTER he purchased their larger dream home. He called about rates on a shorter 15 year term for the new house, because he wanted to get the house paid off because he was getting closer to retirement. He had several options on how to structure this transaction—one being to get an equity line of credit on his free and clear current home to use for down payment on the new home with plans to pay off the equity line of credit when he sold the current home and be left with the much smaller first mortgage on the new home. But that would still leave him with higher payments each month for the full term of the loan.
Instead, we looked at financing the new home with a portfolio jumbo loan with no private mortgage insurance required with only 10% down on the price of the large new home. The jumbo loan with the lowest rate was an adjustable rate, but his new house would sell quickly and once it sold, he was going to pay down ALL of the large amount of equity on that house to pay down the balance on the Jumbo Adjustable rate. The beauty of this scenario was that he would enjoy the lower rate on the jumbo adjustable rate program. Some time after he paid down over 40% of the loan balance from the proceeds from the sale of his current home, his payment would be recalculated each year ONLY ON THE UNPAID BALANCE. With the annual and lifetime safety caps in place on the adjustable rate for the life of the loan, his payment would stay MUCH lower each year even if the rate went up to the maximum allowed within the safety caps. He planned to take the extra he was saving each month and pay extra on the principle so that he could get rid of the house in LESS than 15 years. He was set up to be a lucky man with a bigger pot of gold if you believe that Luck is when preparation meets opportunity.
(Jo) Later in this show we’re going to talk about some ways you can restructure or recast your mortgage to get you to that pot of gold. Here ‘s the question to you or someone you know who is thinking about this—What are you trying to accomplish? Do you need to free up more cash per month? Are you trying to pay off the higher interest rate credit card debt and replace with a much lower interest rate loan? Are you trying to get RID of your mortgage sooner rather than later at the least amount of costs? Stay tuned…
But we’re also talking about to find more value in your home. Tom, if I am going to list my home for sale or if I want to refinance my home on a loan product that may require an appraisal, what are some things I can do as a homeowner to help prevent a low appraisal value from an appraiser?
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 notable Memphis historian, Jimmy Ogle. Jimmy offers free historic walking tours in downtown Memphis in the spring and fall. To find out more, ask Jimmy at www.JimmyOgle.com . Our 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.
Garner # 71 03/11/16
Mt. Airy
Question: I am one of the oldest homes in Shelby County and my location is near Cordova. Who am I?
Hint: Thomas Crenshaw, my builder, suggested the name for the town now known as Cordova.
Hint: I was built in 1835. My address is 10700 Latting Road in Cordova, Tennessee.
Hint: For six generations since the 1830s, Mt. Airy was the home of the Field families.
Final Hint: In 1976, I was awarded a Century Farm Certificate for being continuously operated by one family for over 100 years.
Answer: Mt. Airy – the first home in the eastern part of Shelby County (Morning Sun community and Cordova), built in 1835 by Thomas Crenshaw who married Ellen Feild. The Feild children were orphaned after parents and grandparents deaths, lived with an Uncle who moved to Fayette County between 1830 and 1855 in Somerville area…where Ellen married Thomas Crenshaw. Roscoe Field graduated from Princeton and he is the one that suggested the name “Cordova” and later owned Mt. Airy and handed it down the line.
That is about the same time that Thomas Crenshaw built Mt. Airy, Robert Ecklin was building the first home built by an architect – Ace Edwards. Ecklin is the earliest settler. He was married to sister of Ace Edwards (Lucinda Edwards.) Anyway, the daughter, Emma Ecklin married Roscoe Feild and lived in Mt. Airy and passed it down the line to their children. Mt. Airy was a self-contained working plantation with its own gin, sawmill, barns, blacksmith shop, and smokehouse. Cattle, sheep and cotton sustained the plantation.
It remained in the Feild line until Doris Latting died in 2004 and only one owner (Vanderpool I think) had it until sold back to John Feild. A Feild girl married a Latting (but us girls do that but still the same blood line had the home for ALMOST this entire time since 1835.)
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 tour being the Bridge Walk on the Memphis & Arkansas Bridge on at 2pm on Sunday, March 13; the Fairgrounds Walking Tour at 2pm on Sunday, March 20 (assemble at the Coliseum). The D’Army Bailey County Courthouse Tour (indoors): Third Thursday each month at 12:00 noon – the next being Thursday, March 17.
Go to jimmyogle.com for the 2016 Spring Season schedule
QUESTIONS ANSWERED BY TOM KING:
1. What are some ways property sellers or homeowners who are refinancing can avoid low appraisal values?
2. What are the number one investments you can make to your home that will add the most value per dollar invested?
3. What kind of comparable sales in the neighborhood can you use and which sales don’t count?
4. talk about the lender-appraiser firewall
5. Give examples of some of your clients you have been able to other than the mortgage process?
8. Double check for geographic competency—BEFORE the appraiser arrives at your house.
QUESTIONS ANSWERED BY JO GARNER :
⦁ How can you pack your pockets with the most gold from your existing mortgage?
⦁ Prepaying your mortgage early in the term to get rid of the mortgage faster with less investment out of pocket.
⦁ Refinancing to a lower rate AND shortening the term can save you tens of thousands of dollars by eliminating several YEARS off the mortgage.
⦁ Cash out if you have a sure place to invest it where you know fairly certainly your return on investment will bring you a return MUCH higher than the rate you are paying on the mortgage.
⦁ Talk about ways you have helped your clients keep the most money in their pockets on a new mortgage.
⦁ Talk about example of caller this week who was buying a house before selling his free and clear home —answer for the loan to buy was using an adjustable rate—and here’s what it could save him…. (calculations)
⦁ What exactly is the client trying to accomplish?
-trying to free up cash flow per month? What is recasting vs refinancing? (Recasting is when the client prepays at least 20% of the principle balance on a mortgage and the lender agrees to amortize the remaining years of the mortgage at the reduced loan amount. It is up to the lender’s discretion to do this or not do this. The answer is always “no” if you don’t ask. The answer from the lender might be “yes” if you ask. )
-paying off higher interest rate debt using lower interest rate debt?
-trying to get rid of the mortgage sooner
⦁ Are you still doing the special HARP refinances and some streamline refinances where you don’t require an appraisal?
⦁ Yes. For primary residences, second homes and rental properties in the Tennessee, Mississipi and Arkansas and in other states across the country too.
⦁ If you have been told by a different company that they cannot help you with a refinance with no appraisal on HARP because it is an investment property or second home, call me directly after this show—I may be able to help you. If you are self-employed and have been told no that your income is too low, call me. I have found income in the BACK pages of some clients’ tax returns. You can reach me directly at (901) 482-0354 (901) 482-0354 or connect with me online at ⦁ www.JoGarner.com
REAL ESTATE TIP OF THE WEEK: (Tom King offers real estate related time-saving, money-saving tip for homeowners or home buyers when the subject property was built prior to 1978. Make sure any peeling paint or paint chips are removed entirely from the scene )
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 the University of Phoenix 65 Germantown Center 1st floor Cordova, TN. This Wednesday March 16th, 2016 Talk Shoppe presents “Don’t Panic. Save A Life” by Wardell Seals, Jr. President CEO of HeartBeat-CPR. Shoppe events are free for the next couple of months thanks to our advertisers like Tim and Katie Gilliland of www.BackupRX. They can ease your mind with Cloud Services & computer disaster recovery plans. Also, Pat Goldstein, Realtor with Crye-Leike, Inc The Gold Standard in real estate 901 606-2000.
2. FOR THIS PODCAST OF REAL ESTATE MORTGAGE SHOPPE AND MORE, GO TO JOGARNER.COM
4. Call me and let’s MAKE YOUR PLAN, WORK YOUR PLAN. IF THE DEAL WORKS FOR YOU TODAY, DO IT TODAY.
______________________________________________________________________________
QUOTE CORNER: When it looked like the sun wasn’t going to shine any more, there’s a rainbow in the clouds. — Maya Angelou
Try to be a rainbow in someone’s cloud. — Maya Angelou
Pinterest: “If children are the rainbow of life, grandchildren are the pot of gold.”
_____________________________________________________________________________
Transitional Music: “Heart of Gold” Neil Young; “Somewhere Over the Rainbow” Aretha Franklin; “Golden Years” David Bowie; “Memphis” by Johnny Rivers for Look Back Memphis Trivia Contest
_______________________________________________________________________________
REJOINERS:
9:15 break: Jeff and Heidi Ross with ShowHomes Memphis. 901 831 1177
9:30 break: Kimberly Miller, ARCH Mortgage Insurance www.archmi.com (615) 424-1500
9:45 break: Terri Murphy, Real Estate and Lending Coach www.TerriMurphy.com
____________________________________________________________________________
ABOUT TOM KING, APPRAISER WITH BILL KING COMPANY
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
_____________________________________________________________________________________
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