Rise and shine Memphis and across the country on IHeart radio! It’s the 2nd day of summer and things are heating up! You’re on the Real Estate Mortgage Shoppe program. I’m your host, Jo Garner, mortgage professional with Evolve Bank and Trust. Give us a call on the air today at 901 535 WREC. That number again is 901 535 9732. Our co-host today knows how to cool things off when its getting overheated. Duane McCrory of Top Quality Service heating and air service. It’s great having you in the studio with us today.
I wish you could bring some comfort to the mortgage market right now. Its like a fire has broken out across the country and mortgage rates have spiked out of control like the summer temperatures are about to do.
Tell us a little about yourself, Duane, and what Top Quality Service can do for your customers.
Its June 22nd 2013 and the big news this week is that mortgage rates like a rocket off the launch pad. The Federal Reserve made another comment about eventually tapering off the bond buying and that was all it took for investors to start selling and bailing out of the bond market—including the Chinese who are big buyers of bonds which back our mortgages. Rates went up over a quarter point in just a few hours. But look, for those of you, especially realtors, who have been in the business for a long time, Rates in the 4’s are still fantastic.
Friday the 30 year fixed rates were reported at 4.25% but by the afternoon they were about 4.5% to 4.625% with no points. The 15 year was reported Friday at about 3.375% and by late afternoon they were around 3.75% with no points. The FHA/VA 30 yr fixed coming in around 4.375% to 4.625%.
If you have not called your loan officer to crunch numbers on what you can do to save money on a refinance or a home purchase loan, now’s a great time. Susan Belew, my very experienced assistant and I , would like very much to crunch YOUR numbers. Call us off the air to talk more directly at 901 482-0354. That number again is 901 482 0354.
If you’re looking for advice on whether to make the move or not—here it is—“If the deal works for you today, DO IT TODAY!”
If you can recapture your closing costs with your monthly savings or savings on interest costs within less than 18 months, and you’re planning on keeping the house for at least 5 years are more—then the rule of thumb would say—The Deal Works For You Today. It only takes a couple of minutes and we can do that calculation for you to determine how long it will take you to get back your costs.
If you’re worried about an appraisal value on your home or investment property, call me. We have the special HARP refinance program that is still going strong that does not require an appraisal value. If you have an FHA loan or USDA Rural Housing loan, you don’t have to worry about an appraisal because there’s not one at ALL.
You may have other high interest rate debt that feels like an anchor around your neck. We may be able to help you with a cash out refinance on your home or rental property to give you the money you need to pay off the higher interest rate debt. This can give you instant relief, but be careful that you don’t rack up more debt right after you pay off the old stuff.
Duane, I was listening to Bloomberg Radio this week out of New York and they said one of the hottest markets right now is in Memphis, TN. Can you believe that? The prices on homes in Memphis compared to the going rent rates—provide a terrific return on investment for so many investors around the country and the world .
Memphis is a gold mine when it comes to real estate. Not only do we have low rents compared to square footage and amenities, so its great if you want to enjoy a great place with a reasonable monthly rent payment but if you want to build long term wealth—you can BUY houses in the Memphis area with a positive cash flow and keep on accumulating more and more. Gotta love Memphis!
If you’re a first-time homebuyer, you can find down payment assistance in Memphis and other fair cities as well. Memphis enjoys the Tennessee Housing Development Agency down payment assistance program through the State of TN. Other states have their own similar programs. We have the City of Memphis and Shelby County Down Payment Assistance program and the new Helping Homeowners Program. Eligible veterans can use the 100% veteran loan to purchase a home. If you are buying in an area designated by the USDA Rural Housing program you could possibly buy a home using their 100% financing program.
We have programs for other states too.
If you are a homebuyer or investor and you want to put enough money down to avoid having to pay mortgage insurance, but you don’t want to have to use your own money, we can do that too.
If you are a strong borrower, we can use fund the extra down payment with a loan secured on the same property you’re purchasing or a different property to help you with the down payment funds. Sometimes we can fund your down payment with a loan on an asset other than real estate. The sky is the limit.
If you or someone you know is interested in purchasing or refinancing a home or a number of them, call me on the air at 901 535 WREC or directly at 901 482 0354. That direct number is 901 482 0354 or catch me on my blog www.mortgageloansblog.com
Duane, we’ve been talking about hot markets and heated races going on with our mortgage rates and bond market. You’re in the heating and air business—and from what I hear you been dealing with a “Hot” market of a different kind.
Questions answered by Duane McCrory:
1. How do you pick a qualified HVAC contractor?
2. Talk about the new EPA regulations and how it will affect homeowners. What can homeowners do today to avoid problems with these upcoming regulations later?
3. Talk about the new technology that provides homeowners with free hot water?
4. What should a homeowner do if his A/C unit freezes up?
5. Talk about some success stories of how you have been able to save homeowners thousands of dollars with simple inexpensive fixes that might have otherwise cost $5,000 to $10,000 dollars.
Questions answered by Jo Garner
1. There are quite a few houses for sale that need repairs including new heating and air systems. How do you get houses financed that need major repairs?
The FHA 203K rehab loan is a government program that helps the home buyer purchase the home and finance the repairs.
The FHA 203k renovation and rehabilitation mortgage clears the way for numerous homeowners to get the very best buy on purchasing their home. In my career as a mortgage loan officer for the past 20 years, I have seen my customers seal some of the very best deals buying real estate using the FHA 203K Repair and Renovation loan.
My customer, Mr L, called me when they put the last finishes on their repairs on the house they purchased for just cents-on-the-dollar. Here’s how he snagged the “deal of the century” as we are calling it.
Mr. L knew that his family needed to purchase a home that would more than meet their needs but still remain within their budget. They had been on the hunt for their perfect home for about 2 years. I could hear the excitement in his voice when Mr L called me to get the loan application completed and the preapproval letter drafted so that his contract could be accepted by the seller.
“This is the perfect house for us, Jo. It is so unbelievable that we getting this house in this neighborhood for so little money. Not only is our payment going to be within our budget, but is going to leave room for other stuff. What a deal!”
I walked Mr L through the process
(1) First he looked at the house with his contractor and got an idea of how much it would costs to repair
(2) I gave him an estimate of what terms would be on the loan
(3) He and his realtor wrote an offer to purchase the home and it was accepted.
(4) I set up an appointment for the appraiser, the HUD consultant and the homebuyer to meet at the property. The HUD consultant reviewed the specifications and cost estimates from the contractor who would do the work. The appraiser gave us a value for the property. Later the HUD consultant delivered the “official” reasonable costs estimate that the mortgage office would use to calculate Mr. L’s loan amount.
(5) Mr. L submitted his income and asset documents and loan disclosures to the mortgage office and we submitted the loan to underwriting for approval.
(6) Mr. L closed on his loan leaving the money for repairs in escrow to be pulled out little by little as the repair on the house gradually came to completion. The HUD consultant came out 4 or 5 times to inspect the work as they would get to a certain stage in repairs. At each inspection, a draw was made on the repair money sitting in the escrow account to pay the contractor until the work was completed.
Here is how the 203k loan structure looked approximately for Mr. L. :
Sales price: $80,000
Cost of renovations: $38,000
15% reserve on renovations: $5,700
$123,700
X 96.5 (to subtract 3.5% mandatory down payment)
$119,371 (FHA base loan amount)
X 1.01 (adding 1% upfront FHA mortgage insurance)
= $120,564 (total loan amount with upfront MIP added)
Mr. L’s money needed to close:
Down payment 3.5% $4,339
Closing costs including $800 HUD consultant fee & 3 inspections $5,000
Escrowing property taxes and insurance $2,700
Seller agreed on contract to pay $2,400 of closing costs for buyer. (FHA allows the seller to pay up to 6% of the closing costs if it can be negotiated on the contract)
$4,339 dp + $5,000 closing costs + $2,700 tx & ins=$12,039 minus seller pd $2,400=Mr L to pay $9,639 to close.
The house value was assessed at over $200,000. What a deal for Mr. L! What a deal for anyone who can buy a house that far below market price, fix it up and walk into an instant 40% equity position!
The FHA 203K mortgage loan financing was a great real estate home purchase for Mr. L living in Memphis.
2. On some of the foreclosed homes, the HVAC aren’t working or have been stolen. the sellers are reluctant to replace the HVAC system until the loan is ready to close. How do lenders handle this?
Here is more info if needed for Saturday show from Graham about Air sealing ducts etc.
He will not be there – out of town
thanks
Duane
1. Holes in your duct system is like having holes in your ceilings.
2. Department of Energy Says that: “80% of the homes in America are loosing 20% – 40% of their energy through leaky duct systems.
3. Consumer Reports says “The best return on investment for a home improvement is, Sealing Air leaks.
4. Sealing your ducts can easily have a 2-3 year payback (ROI)
5. It also will all all the air to go to the rooms it was intended. More comfort in rooms, same temperature.
6. It will prevent your home from having pressure differences, less dust, less carbon monoxide, less humidity.
7. It is great for the environment and national security because, the energy wasted from leaking ducts each year is equal to all the oil produced from Prudo Bay, Alaska. $25,000,000,000 (billion) is wasted annually.
On Tue, Jun 18, 2013 at 8:49 PM, Duane McCrory
can you email me a few points to mention on the radio Saturday about Aeroseal or anything else I should mention?
Jo Garner’s Bio
www.MortgageLoansBlog.com www.MoneyShoppe.NET (901) 482 0354 jogarner@mindspring.com
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 17 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.BIZ She was also the editor of Power Shoppe, a free weekly ezine designed for real estate professionals and others indirectly connected to the real estate industry and currently publishes on her blog www.MortgageLoansBlog.com .
For real estate financing solutions, plug into the Real Estate Mortgage Shoppe program. You can find mortgage rates, FHA Streamline refinance with no out-of-pocket costs, refinancing options, home purchase loan programs, answers and real estate, money-saving tips and more.