(Troy) Good morning ! Welcome to the Real Estate Mortgage Shoppe program with me Troy McDonald of Erin McDonald Allstate Insurance Company and my lovely wife Lynn. We are hosting for Jo Garner, Mortgage Officer with Evolve Bank and Trust.

Our topic today is ” Is It Covered?” Call us and let’s talk at (901) 535-WREC. That is 901 535 9732.
Jo’s up in New England at the Yarmouth, Maine Clam Festival. I think she is on the hot line though. Jo, how’s the weather up there?

Hello, Troy and Lynn. As much as I love Memphis, the triple digit heat was about to get to me. It’s a high of 75 degrees and low in the 50’s up in Maine this week. The lobsters and clams are heavenly but I brought a little bit of heaven up here from Memphis too. My friends LOVE our Corky’s Bar-B Que sauce.

(Jo says) Existing-home sales declined 5.4 percent on a seasonally adjusted annual basis Economists say the lower sales of existing homes in June were not the result of lagging demand but rather of an insufficient supply. Improvements in the housing sales will continue while there is a chokehold on inventory, but this might change as more inventory is finally released into the market.
Single-family housing starts rose 4.7% in June from the month prior and new construction projects are up 20% from a year ago. Overall, multifamily construction is up nearly 30% from June 2012. For now the news is looking good
Mortgage rates edged up for the first time this week. Despite that, mortgage rates have done a good job of not losing any ground so far this week. Mortgages don’t always follow Treasuries in lock step because of underlying situations such as supply and demand.
The benchmark 30-year fixed-rate mortgage fell to 3.78 percent from 3.79 percent and then bumped up just a little
The benchmark 15-year fixed-rate mortgage fell to 3.04 percent from 3.05 percent. The benchmark 5/1 adjustable-rate mortgage fell to 2.89 percent from 2.95 percent.
( Jo says) All of this news bodes well for homeowners still wanting to refinance to much lower rates to save hundreds of dollars a month, or shorten the term on their mortgages while keeping the payment relatively the same.
The Home Affordable Refinance Program (otherwise known as HARP) is still going strong. If you know someone who owes more on their house than the home is currently worth, please let them know there may be a possibility they can refinance to a lower rate without an appraisal. Even if you are NOT underwater, it’s a great opportunity to refinance to a lower rate without the costs and without the hassel of an appraisal.
The number of FHA streamline refinances are growing in large part because of a new allowance for existing FHA loans endorsed prior to May 31, 2009 to take advantage of MUCH lower mortgage insurance premiums if you qualify.

(Jo says) For those of you purchasing homes, there are plenty of mortgage program s out there for you.
There are plenty of down payment assistance programs available to qualifying first time homeowners. We also have special loans for buying and renovating homes . We have the FHA 203K renovation and repair loan and the Fannie Mae Homepath loan with renovations for investors AND owner occupants.
But let’s talk about insurance for a few minutes. Troy and Lynn you guys cover a lot of our customers with homeowners insurance and other insurance Today we’re talking about “Is It Covered?” What is covered and what’s NOT covered?
Troy and Lynn

Questions answered by Troy and Lynn
1. If you have a new roof on your home, you probably qualify for a discount on your homeowners insurance

2 If you have damage to your home by a wild animal and you do not know what animal has done the damage remember that damage by raccoons are covered by damage by squirrels are not.

3 Damage intentionally inflicted by you or your family to your property is not covered .

Questions for Jo Garner to answer:
1. What is the difference between refinancing an FHA loan that was originated prior to May of 2009 and refinancing an FHA loan that was more recently originated?
A. Jo’s answer: For example : 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. What are some repairs on a house that an appraiser would normally require to be fixed BEFORE closing?
Jo talked about structural type repairs. Talk about escrow for repairs and having sellers do it and pay contractor before or after closing
HVAC systems.

Real Estate tip of the week: Since Heating and Air units are stolen so frequently , may want to have the heating and air units installed the morning of closing and have a certified heating and air company issue a letter to the mortgage company that the new heating and air system is installed and functioning properly. This will save you about $100 or more on having the appraiser come back out to make sure the unit is installed.
Jo Garner, Mortgage Officer Evolve Bank and Trust (901) 482 0354 www.MoneyShoppe.NET
Lynn McDonald, insurance agent with Erin McDonald Allstate Insurance Company (901) 849-7101