HOW TO GET THE HIGHEST VALUE ON YOUR HOME & SAVE THOUSANDS ON YOUR MORTGAGE COST

 

HOW TO GET THE HIGHEST VALUE ON YOUR HOME & SAVE THOUSANDS ON YOUR MORTGAGE COST

 

(Celebrating Real Estate Mortgage Shoppe’s 8^th Year Anniversary Show)

Today real estate appraiser, Tom King, will be sharing some tips on how to get the highest value on your real estate. I will be sharing with you some ways my mortgage clients are enjoying bragging rights on some smart moves they made with the mortgage that is saving them thousands of dollars on their mortgage.

What would YOU like to accomplish with YOUR mortgage? Let’s talk! Call me at (901) 482-0354 and subscribe for Real Estate Mortgage Shoppe weekly podcasts with show notes at www.JoGarner.com

To Your Success,

Jo Garner, Mortgage Loan Officer NMLS# 757308

(currently with Sierra Pacific Mortgage)

 

Welcome to Real Estate Mortgage Shoppe!

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. Our general topic is HOW TO GET THE HIGHEST VALUE ON YOUR HOME & SAVE THOUSANDS ON YOUR MORTGAGE COST. Subscribe to get Real Estate Mortgage Shoppe podcasts with show notes at www.JoGarner.com Call us while we’re live today November 9^th, 2019 at (901) 535-9732.

 

INTRODUCING TOM KING, REAL ESTATE APPRAISER

 

 

Tom King, our expert appraiser with Bill King Appraisal Company, is back in the studio doing what he loves most—offering our listeners some facts and fundamentals for getting the highest value on their homes. Tom has been appraising in Shelby, Fayette and Tipton Counties in Tennessee for over 40 years—and he really was very young when he started appraising with his dad—no joke. Tom, take a moment to introduce yourself and talk about the appraisal services you offer your customers. (Tom has about a minute or so to intro himself and talk about the appraisal services he offers his customers )

BRAGGING RIGHTS MULTIPLIED TIMES 3—RUBIN AND ROSIE RUSHING’S STORY

(Jo) Tom, as our listeners know I love sharing smart strategies some of my mortgage clients have used to get bragging rights on their financing. I nickname these clients my “rock star clients.” I had the opportunity to work with Rubin and Rosie Rushing when they purchased their first home shortly after they got married and were expecting their first child.

Starting out, the Rushings were trying to pay off debt and did not have a lot of money in the bank. They paid down about 3.5% of the home price for a down payment. To give them some breathing room on their house payment, they chose a 30-year fixed rate mortgage. The low 30- year payment allowed them to build up some savings and pay down more debt.

Fast forward five years… My phone rang and when I picked it up, Rubin was on the other lane. “A voice from the past,” he said, the tone in his voice indicating he was clearly happy about something. Rubin went on to share with me their story.

After buying their first home, Rubin and Rosie enrolled in the Dave Ramsey “get out of debt” program. They rearranged their life to enjoy creative but fun local adventures for themselves and their young children. They learned some clever methods of living a fun-filled life on a very narrow budget. When they got raises at work, they continued paying off debt and investing more and more money into an emergency fund.

Now, Rubin described their plan to refinance their 30 year mortgage to a 15 year mortgage for a lower rate AND eliminating ten years (120 payments.) Here’s how they accomplished their bragging rights:

They had a mortgage originally for about $172,000 on a 4.5% to 4.625% 30 year mortgage with an $883 Principal and interest payment plus taxes and insurance and FHA monthly mortgage insurance of about $119/month –a total of about $1,367/month

1. They refinanced their mortgage to a 15 year term,(2) lowering their rate a full point. Their principal and interest payment increased to by $246/month but (3) they eliminated the FHA mortgage insurance and lowered the interest over the whole loan amount for the entire term of the mortgage.

If the Rushings had not refinanced, they would have paid $883 P&I and the $119 FHA mortgage insurance for the remaining 25 years -total payments $300,600. BUT, they refinanced and total principal and interest payments over the remaining new 15 year term $203,400 for a whopping savings of approximately $97,200. BRAGGING RIGHTS!

What do YOU want to accomplish with YOUR mortgage? MAKE YOUR PLAN. LET’S WORK YOUR PLAN. IF THE DEAL WORKS FOR YOU TODAY, LET’S DO IT TODAY. Connect with me at www.JoGarner.com. Email me at Jo@JoGarner.com or just call me at (901) 482-0354.

(Jo) Tom, I have just described one of many ways to save thousands of dollars on a mortgage. Take a moment and cover some ways homeowners can add value to their homes.

(Tom covers some factors that can encourage buyers to offer a higher price for the home like curb appeal, staging, making sure repairs are completed, clean, decluttered, good lighting)

But the focus for appraisers is on comparable sales in the neighborhood etc….

You’re on Real Estate Mortgage Shoppe. I’m your host, Jo Garner, Mortgage Loan Officer. What do YOU want to accomplish with your mortgage? Make your plan. Subscribe to get Real Estate Mortgage Shoppe podcasts with show notes at www.JoGarner.com Let’s work your plan if the deal works for you today, let’s do it today. When we come back Tom King will be giving examples of what appraisers calculate as heated space—you may be surprised.

THE LOOK BACK MEMPHIS TRIVIA CONTEST

^2nd segment after 9:15 break: Our Look Back Memphis Trivia Contest is brought to you by notable Memphis historian, Jimmy Ogle. Google “Jimmy Ogle Pink Palace” to hear some of his lectures on Memphis history. For more 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 or you can do the big project in phases . 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: C.H. Nash Museum at Chucalissa OR Chucalissa Indian Village

Trivia Question: Who am I?

Hints: Civilian Conservation Corps workers discovered Native American artifacts on the site in 1938 and archaeological excavations of this Mississippian mound complex were initiated. The ____________________ and the rest of the village grounds have been operated by the University of Memphis since 1962.^[5]

In 1973 this place was added to the National Register of Historic Places.^[2] Later, in 1994, it was declared a National Historic Landmark.^[1][3] It is an archaeological site. The site features a Mississippian mound complex, nature trail and arboretum, hands-on archaeology lab, and exhibits that explore the history and life-ways of Native Americans of the historic and prehistoric southeastern United States.

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TOPICS COVERED BY TOM KING, APPRAISER

1. What are some of the top ways homeowners can raise the value on their homes?

1. Does good looks add value? (Realtors report that curb appeal and a clean, decluttered home tends to bring higher dollar amounts for a home. However, the appraisal is more focused on sales of similar homes in the neighborhood…)

2. Adding extra heated space- usually adding a room or extra heated space adds the most value to a home. However, be careful not to overbuild for the neighborhoods. Also, all heated space is not counted equally. Here are some examples of heated space that is not given the full value that other areas of the house is given:

3. Kitchens and Bathrooms –

Sinking your money into updating and upgrading your kitchen and bathrooms tend to bring the biggest return on your investment, but these are usually the most expensive repairs. If you are looking for a higher value from the appraisal, make sure you are not over-improving your home compared to the homes in your neighborhood

4. Adding smart technology to your home- may create more demand and a higher price for your home if it is on the market. Here is how it is likely to affect your home on an appraisal…

5. Energy efficiency features- How does energy efficiency upgrades affect the value in a home?

6. What additions or improvements to a home add the most value when it comes to the appraisal?

2. Talk about the criteria a real estate appraiser uses to calculate the value on a home?

   1. Which comparable sales is an appraiser most likely to use to compute the value on a home?

   2. What are some of the rules appraisers have to follow from mortgage companies?

   3. Firewall rule between appraisers and mortgage companies

3. What are some of the most common repairs an appraiser notates on an appraisal? Which ones do mortgage companies usually require to be repaired before closing on the house___________________________________________________________

TOPICS COVERED BY JO GARNER, MORTGAGE LOAN OFFICER

1. Where can homeowners go to find tools to help them pay off their mortgages faster with the least amount of investment?

The most important tool to use for determining the fastest way to pay off a mortgage early with the least amount of investment is the amortization schedule. You can get them free by googling “Mortgage Amortization Calculator.” Be sure you enter your original loan amount and the date of your first payment, including the year. Then scroll down to the balance that matches your current balance, draw a line and add up the principal portions of each payment after the regular full payment. You can also use the schedule you got when you financed your loan—it should be in your closing papers. Or call me and I can walk you through it. The earlier in the mortgage you start prepaying the principle the more interest you will save with the least amount of money out of your pocket because a larger part of the principle and interest payment makes up the interest compared to principle in the beginning of the loan rather than at the end.

Example:

Eddie Eddleman, a military veteran gets bragging rights eliminating 8 years off his mortgage.

Loan amount $200,000 30 year term principal and interest payment $953/month.

Eddie pays an extra $953 P&I once a year.

Total principal and interest payments if he did NOT pay extra payment each year $953 X 360 months= $343,080

Paying one extra P&I payment each year for 23 years $21,919

Total payments over 23 years (276 months) including extra payments =$284,947

SAVINGS in total payments =$58,133

2. How do you get rid of private mortgage insurance?

1. If you already have a conventional mortgage and you think the balance owing on your mortgage is less than 80% of today’s value on your home, you can call your current lender and ask them to remove the private mortgage insurance from your payment so you don’t have to pay it anymore. They will probably want some money from you to order an appraisal to make sure your mortgage is indeed less than 80% of your home’s current value.

2. As a mortgage loan officer my first job is to make sure I cut the cost of the mortgage loan as much as possible for my mortgage customers applying for a mortgage. One way to do that is to help them avoid paying mortgage insurance as much as possible. I have had mortgage customers apply online or by phone or in person that I have helped them eliminate all or part of what they would have paid in mortgage insurance.

3. Another customer story-Here’s an example of a common occurrence. I had a customer who had just finished graduate school and gotten a great job locally. She got her offer accepted on a home for $160,000 in a neighborhood where she told me, “I want this house to be my forever home! And even if one day I buy another house, I plan to make money on this one renting it to tenants.”

She applied for a 30 year FHA loan putting down the minimum 3.5% down payment. After asking her some questions, she told me her parents had given her quite a bit of money for her house. She had enough to pay 10% down on the house. When I showed her that she would pay less per month on the FHA mortgage insurance and the note too AND best of all the mortgage insurance payments would go away after a little over 10 years instead of her having to continue to pay it for the life of the loan, she did the math. She decided to put down 10% instead of the minimum and enjoy the lower payments.

For other mortgage customers, on conventional loan products the mortgage insurance goes away at around 80% loan-to-value . But we compare what would work best for their specific situation—to pay the mortgage insurance monthly or have the lender pay it for them all in one lump sum so they have no payments at all. There are lots of different ways to minimize the amount of private mortgage insurance you have to pay if you want to pay less than 20% down

For some homeowners who want to get rid of the mortgage insurance AND get rid of the mortgage sooner, we have found some refinance scenarios that can lower the interest they are paying, get rid of the mortgage insurance AND help them pay off the loan sooner. They accomplished all of that by letting me refinance and restructure they existing loan.

3. Did you know that the higher your credit scores, the better the pricing you get when you take out a loan for a car, a boat or a house? One way to work smart to save thousands on your mortgage is to work on getting your credit scores at the highest possible before buying your new home.

Keep your owed credit balances below 30% of the total credit limit on each credit account. Never allow the owed balance to go over 50% of the credit limit because this will actually drop your credit scores, even if you’re making the payment on time. If you want to REALLY add some points to your credit score fast, keep the owed balances on your revolving accounts under 10% of the total credit limit. Just make sure you don’t pay the credit card off because they may not report which will not give you the boost on your scores you want.

Make your payments on time.

REAL ESTATE TIP OF THE WEEK (Tom King shares a real estate related money-saving or time-saving tip- compare savings of refinancing from a longer term to a shorter term mortgage. You can save thousands depending on your loan structure simply by lowering the rate only 1 point or less. Look at the numbers for your loan with Jo Garner ): Jo’s tip. The higher your credit scores, the lower your mortgage rate. www.myfico.com

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 ServiceMaster by Cornerstone 9575 Macon Rd Cordova, TN (corner of Big Orange and Macon Rd) This Wednesday November 13^th, 2019 “Minimizing Stress During the Holidays” presented by Terry Mecklin, Health Coach ad Wellness Advocate. For more about Talk Shoppe go to www.TalkShoppe.com

You can make a positive difference in the life of a child this week. Make a donation for $50 or more to Talk Shoppe’s “Old Bag Auction” to benefit the children from the Neighborhood Christian Center here in Memphis. Know that your act of kindness has a ripple affect across our city. Contact Lynn McDonald at (901) 849-7101 or email me at Jo@JoGarner.com Join us at the auction at Talk Shoppe Wednesday November 20^th.

Thank you to Tim Gilliland for keeping our data backed up at Talk Shoppe. He can give you the same peace of mind. Contact Tim at www.backupRX.com

2. Salute to our military veterans! Thank you for your service and sacrifice. Happy Veterans Day!

4. Subscribe at www.JoGarner.com and you can get our weekly blog posts with podcasts conveniently in your inbox.

5. Real Estate Mortgage Shoppe reminds you to MAKE YOUR PLAN. LET’S WORK YOUR PLAN. IF THE DEAL WORKS FOR YOU TODAY, DO IT TODAY.

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. ALL EXAMPLES GIVEN FOR ILLUSTRATION PURPOSES ON REAL ESTATE MORTGAGE SHOPPE AND 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.

QUOTE CORNER:

Warren Buffet- from finallyfrugal.com “Don’t save what is left after spending, but spend what is left after saving.”

Will Smith “Too many people spend money they haven’t earned to buy things they don’t want to impress people they don’t like.”

REJOINDERS:

1. Nita Black, www.901ELearn.com Memphis, TN (helping you share your knowledge and skills online to make money)

2. Brett Carter, ServiceMaster by Cornerstone (Cordova, TN) for restoration of your home or office following a disaster from fire, flood, mold-“don’t go it alone, call Cornerstone” (901 624-9200

3. Pat Goldstein, Realtor with Crye-Leike Realtors in West TN and North Mississippi “The Gold Standard” in real estate (901) 606-2000

Transitional Music: “Home” by Daughtry;  “Home” Phillips Phillips  ;“Home”  by Dolly Parton; “Memphis” by Johnny Rivers for the Look Back Memphis Trivia Contest

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ABOUT TOM KING, APPRAISER WITH BILL KING COMPANY

(901) 487-6989

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:

WHAT DO YOU WANT TO ACCOMPLISH WITH YOUR MORTGAGE?

www.JoGarner.com (901) 482 0354 jo@jogarner.com twitter @jogarner NMLS# 757308

“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 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 25 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 25 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 Garner also host the radio show Real Estate Mortgage Shoppe airing on News Radio AM 600 WREC and iHeart Radio with podcasts and show notes published on www.JoGarner.com