Good morning Memphis! You are on the Real Estate Mortgage Shoppe program with me, Jo Garner, Mortgage Officer with Evolve Bank and Trust. With us today around the coffee table is Tom King, a certified Shelby County property tax appeal expert with King and Vaughan Consulting.
Always glad to have you on the show, Tom. Tell some of our new listeners who you are and what you do best….
Our topic today? “Home Values & Mortgages: What’s Happening In Your Neighborhood?” Call us to talk about YOUR neighborhood or to discuss any other real estate or financing topic you want to talk about. Join us around the coffee table by calling 901 535 WREC.
The 30-year mortgage fixed-rates fell to 3.79 percent from 3.87 percent. One year ago, the mortgage index stood at 4.69 percent just to give you a comparison.
The 15-year fixed-rate mortgage fell to 3.05 percent from 3.13 percent and the 5/1 adjustable-rate mortgage fell to 2.95 percent from 2.96 percent.
Some common questions I hear from our customers are:
What causes mortgage rates to go up or down? And how does the current events on the news effect mortgage rates?
Here’s one answer–When the job market stinks, mortgage rates sink. Until investors feel confident about the U.S. economy, rates will probably stay low because those investors are playing it safe and continuing to buy our Treasury bonds that back our mortgages.
One of the biggest buying customers of our treasuries is our own Federal Reserve under Operation Twist, a tactic designed to help keep mortgage rates down. From June 28 to July 3, the Federal Reserve bought $4.8 billion worth of mortgage bonds. In addition, the Fed is buying about $44 billion per month of long-term Treasury bonds..
Normally, the higher the demand for Treasury and mortgage bonds, the lower the yield or rate of return. Low yields generally help mortgage rates.
The real question is what is going to happen to the mortgage rates after the Presidential election?
FHA Streamline refinances are going strong–especially for those homeowners who have an FHA loan that was originated prior to May 2009. If your FHA mortgage was originated prior to May 2009, it is very possible you an take advantage of the much lower upfront mortgage insurance and monthly mortgage insurance. If you looked into refinance a earlier and it just didn’t make sense because of the high monthly mortgage insurance, try again now.
Of course the Home Affordable Refinance Program called HARP, is still the major headline. HARP is the government program that allows borrowers under certain restrictions to refinance their home to the lower rates without an appraisal.
We always advise that you work with an experienced mortgage officer when consulting on purchase mortgages or refinance mortgages, because the lending industry has been doing acrobats for the last 3 years and what worked yesterday may not work today. You need someone who can guide you through the maze
My very capable assistant, Susan Belew and I would like to talk with you about possible scenarios for YOUR financing. Whether it be a purchase loan or a refinance loan–let’s look at your options. Call us directly (off the air) at (901) 482 0354. That number again is (901) 482 0354.
Here’s some good news…Tennessee Housing Development Agency or (THDA) has just lowered their mortgage rates. THDA offers low rates and down payment assistance to first-time homeowners to purchase a primary residence. We work with several down payment assistance agencies so if you know someone who is a first-time homeowner and needs some help with the down payment, give Susan and me a call at (901) 482 0354.
What do YOU want to talk about right now? Do you want to talk about refinancing your mortgage? Purchasing a home? Trying to sell a home? Want to talk about your credit? New government regulations and how it affects you? Pour you a cup of coffee, drag up a chair and join us around the coffee table by dialing (901) 535-WREC.
Tom, while our listeners are filling their coffee cups, let’s get the conversation started about what you do as an appraiser and as a certified tax appeal expert
Questions to answered by Tom King
1. What is happening with home values in Memphis and the Mid-South?
2. If I had a full appraisal done on my house 8 months ago but wanted to get another one because rates have moved down so much, what kind of value can I expect to see on my house?
3. Now that the deadline has past for filing property tax appeals, how fast can your customers see the results from your work?
Questions answered by Jo Garner
1. What is the difference between what the FHA mortgage insurance a homeowner pays today on an FHA loan and the amount of mortgage insurance they pay on the special program you mentioned for FHA loans closed prior to May 2009?
A. Normal Mortgage insurance amounts for FHA loans:
$100,000 upfront 1.75% $1750 Monthly $104/mo
B. Lower mortgage insurance amounts for streamline refinances of FHA loans endorsed prior to May 31, 2009:
$100,000 upfront .01% $100 Monthly $46/mo
2. You mentioned earlier the Tennessee Housing Development Agency down payment assistance loans. Do you have to be a first-time homeowner to get these type loans?
Answer: there are exceptions. For one, to be classified as a first-time homebuyer, you have to prove that you have not had your name on title to real estate in the past 36 months.
City of Memphis DPA, Shelby County dpa, United Housing, USDA and others
Other specialty products we use are : FHA 203K renovation and repair loan for primary residents and investors.
Fannie Mae Homepath loans with renovations or with no renovations
3. Tom asked, “Jo, I heard you say last week that everything you learned about life, you learned as a teenager from the lawn and landscaping service. What were some of the things you learned?
1. First, if you don’t mind rolling up your sleeves, to ask for business and fulfill the services well that you were hired to do, you can make a LOT of money.
2. While you are working, you need a few other trusted people who are very good at what they do to help you in areas where you are NOT so good.
Get the best on your team and let them do what they do best.
3. Create a simple system that doesn’t take long for everyone to learn and then stick to your system so that lawn work gets done right on time and bills get paid and WE get paid. In the mortgage business Susan and I have systems set up for filing, for following up with customers and for searching out the VERY best terms for our customers
In the mortgage business that system includes these three things:
First of all we try to find out what the customer wants to accomplish with the mortgage financing–but not just what they want today but where they want to be tomorrow–that’s where we begin looking for the right mortgage products.
Secondly, when the appraisal is completed (if there is an appraisal), we do a 2nd look on the loan to see if there is anywhere else we can save them money for instance, by lowering or eliminating their private mortgage insurance or by adjusting a loan amount to get a pricing break
Thirdly staying with that customer years after the closing by continuing to inform them of changes in the market place that might affect them
Real Estate Tip of the Week: If you or someone you know is in the process of buying a house or refinancing one with a mortgage, you will be most likely asked to submit a copy of your latest bank statements (ALL PAGES) Word to the wise: If you can, just give the mortgage company all pages of a latest statement that does NOT show multiple deposits.
Nowadays the loan regulations require that if there are large deposits other than payroll, you will be required to produce a paper trail showing that the deposits were not borrowed. When you turn in your statement of accounts, pick an account that has an acceptable amount of money, but with few deposits. Your life will much more pleasant.
For more information about appealing your Shelby County TN property taxes or for information concerning the value and condition of your property for appraisal purposes, contact Tom King, appraiser and certified property tax appeal expert with King and Vaughan Consulting. (901) 487-6989.
Refinance best rates and mortgage programs for purchasing homes you can find on the Real Estate Mortgage Shoppe radio program every Saturday 9A to 10A CST on IHeart News Radio AM 600 WREC. Contact: Jo Garner, Mortgage Loan Officer with Evolve Bank and Trust (901) 482 0354 www.MoneyShoppe.NET