Good morningMemphis! You are on the Real Estate Mortgage Shoppe program with me Jo Garner, Loan Officer with Evolve Bank and Trust. Our expert around the table today is Attorney Ron Cohen affliated with Ballin and Ballin and Fishman. Ron is with us by hotline from Chicago today.
Great to have you on the program, Ron. Ron is part owner of Premium Title company with an office here in Memphis. My customers have been very happy with them. What’s going on in the legal world, Ron?
We also have our realtor/investor expert around the coffee table Richard Scarbrough with First National Realty.
Tell us a little about yourself and what you do, Richard?
Our topic today? “Good Things Come To Those Who Wait.” Give us a call and get in on the conversation at 901 535-WREC. That number again is (901) 535-9732. Whatever you want to talk about from buying, selling or renting your house , to refinancing a house, title issues or credit questions–call us. We want to talk with you.
(Jo) The benchmark 30-year fixed-rate mortgage fell to 3.75 percent from 3.78%. The benchmark 15-year fixed-rate mortgage fell to 3 percent from 3.04 percent, while the benchmark 5/1 adjustable-rate mortgage was 2.89 percent, the same as last week.
What’s keeping our mortgage rates low? Investors in theUSand in other countries are fleeing to the safest harbor they can find, which for now, due to the European debt crisis, is by investing into US Treasury bills and mortgage backed-securities. Our Federal Reserve is continuing to buy billions of dollars worth of US Treasuries to which also keeps a lid on the mortgage rates.
If you are currently buying or refinancing a home, for the last 8 weeks the people who are advertised as market experts were telling you to lock in, lock in! The rates dropped lower. Today the experts are indicating they think the rate may go down.
My experience with the so-called market experts, is that when they are telling everyone to lock in, the mortgage rates usually move down -not up. When the market experts are telling everyone to float and not lock, then rates tend to go down. Word to the wise: If the deal works for you today, do it today.
Richard, the news articles are saying we have a Dip in Pending Home Sales Partially Due to Inventory Shortages*
Ron, I know you are going to touch on the subject of special refinance programs as a solution to homeowners who feel stuck with their home due to market conditions. The Home Affordable Refinance Program otherwise know as HARP 2 program is still helping people refinance on some loan programs without having to do an appraisal. It’s a real money-saver not to have to get an appraisal for people who are underwater and even for those who aren’t . The HARP program allows homeowners with mortgages that were endorsed by Fannie Mae and Freddie Mac prior to May 31, 2009 to refinance without an appraisal in most cases.
The HARP 3 program is on the table and being discussed right now by your Congressmen and Representatives. The HARP 3 refinance program will allow homeowners NOT backed by a government or quasi-government backed loan to refinance to the lower rates even if they are underwater on their loan. This is just being discussed so if you want it to really happen, you need to contact your Congressmen and your Representative inWashington today.
If you do not qualify for the HARP refinance program, you may qualify for the FHA Streamline refinance with no appraisal if you currently have an FHA loan. If you have an FHA loan insured by FHA prior to May 31, 2009, then you may want to get some updated quotes for refinancing because the mortgage insurance is MUCH lower on those since the middle of June.
If you would like a free estimate and evaluation of your refinancing options for your primary residence, second home or rental property, my very capable assistant, Susan Belew, and I would like very much to work with you. Call me directly at (901) 482 0354. That number again is (901) 482 0354. We would also like to talk with you on some financing options for PURCHASING a home.
Attorney Ron Cohen is with us today to talk about your options on what to do if you feel STUCK with a property due to market conditions. I have taken calls from more than a few people who have said they feel frustrated and even panicked because their home value has dropped and they do not feel they can easily sell their house. What is your advice on how to best deal with this situation?
Ron Cohen’s Subject: Good Things Come To Those Who Wait
Underwater?
Don’t panic.
Real estate is and has always been cyclical.
Mortgage:
Your mortgage has adjusted upward increasing your payments?
Lower your rates.
Consider a refinance.
Ask your lender to modify your loan by extending the term or requiring you to pay interest only.
Taxes:
Try and get your real estate taxes reduced. Declining real estate values should help your case.
Lease: (Ron: our featured person in the studio is Richard Scarbrough, realtor and very experienced real estate investor. He may be able to offer some helpful facts about leasing or selling a home in Memphis)–some information under the * and the ** at the bottom of this article if you want to use it.
Consider leasing your property to cover your expenses.
You could lease the property in its entirety.
You could rent out a room or two.
Don’t want to be a landlord.
Sale:
Consider a sale.
Try to sell “as is” so that you don’t have to concern yourself with repairs.
Try to eliminate any contribution to the purchasers closing costs.
If your property has a negative net worth, you might have to do a short sale with the cooperation of your mortgage lender.
You can’t hold on any longer?
Consider a deed in lieu of foreclosure to your lender.
Why delay the inevitable.
It might make you look better to a future mortgage lender.
If you can’t get cooperation from anyone, consider a bankruptcy so that your promissory obligations do not survive the loss of your home.
The best option is always to try and ride out a rough market.
Questions answered by Jo Garner
- Give us an example of the benefits derived from a typical refinance ?
Example given of refinancing a $150k loan originated in 2008 at 5.875%, refinanced today to 3.875% on another 30 yr loan saving $241/mo.
Another example of the same $150k loan refinanced to a 15 yr loan 2.99% paying an extra $89/mo but saving total payments of $108K over the next 180 months.
2. Are there other ways to refinance your home to these low rates and payments if you do not qualify for the HARP program?
Jo (A). If you have an FHA or VA loan, you may be able to refinance on an FHA or VA streamline refinance program with no appraisal
Jo (B) If you do not have an FHA or VA loan and if you do not qualify for HARP, we can look at leveraging some cash from a different property or getting you a loan secured on your stocks or you can look into borrowing against your 401k to take advantage of the low mortgage rates.
Covered information on a USDA Rural Housing streamline refinance for caller.
Real Estate Tip of the Week: Ron Cohen offers a tip of the week
Jo makes some announcements
Next week’s Talkshoppe at the BBB Ed Horrell, author, speaker and founder of the Kindness Revolution “The Kindness Revolution: How To Use This Program To Help Your Business” Wednesday at the Better Business Bureau 3693 Tyndale Memphis, TN 38125 9a to 10am Talk Shoppe offers free education and networking to anyone interested in real estate or business. For more information: go to www.TalkShoppe.BIZ
Next weeks Real Estate Mortgage Shoppe here on News Radio AM 600 9a to 10a will be with Jo Garner, mortgage officer and Richard Scarbrough, real estate investor and realtor and Kevin Perk with smarterlandlording.com .
Jo Garner, Mortgage Officer with Evolve Bank and Trust Memphis (901) 482 0354 jogarner@mindspring.com www.MoneyShoppe.NET
Ron A. Cohen, Attorney
Of Counsel: Kusper & Raucci, Chartered
30 N. LaSalle Street
Suite3400
Chicago,Illinois60602
312-332-5000
312-346-1145 (direct)
312-332-4663 (facsimile)
Richard Scarbrough, experienced realtor and real estate investor (901) 489-2979
Feeling stuck in your house due to market conditions? Here are some solutions for dealing with real estate in a tough market. Leasing, selling, refinancing or modifying your mortgage. Lowering taxes and insurance.