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Good morning Memphis! You’re on the Real Estate Mortgage Shoppe program with me, Jo Garner, Mortgage Officer with Evolve Bank and Trust. Our co-host is Tom King of King and Vaughn Consulting, certified Shelby County property tax appeal experts.
Tom, you are a regular on the show but for our new listeners, tell us a little about yourself and what you do >
Our special guest today has called into the show before and has been very much in demand for real estate panels at Talk Shoppe, Memphis Investors Group and much more. Larry Mayall, owner and broker of First National Realty, tell us a little about yourself and what you do.
Our topic today is “Memphis Real Estate: Where We’ve Been, Where We Are & The Road Ahead” Get in on the conversation by calling us on the air at (901) 535 WREC. That number again is (901) 535-9732.
The benchmark 30-year fixed-rate mortgage fell to 3.79 percent from 3.8 percent. The benchmark 15-year fixed-rate mortgage rose to 3.04 percent from 3.03 percent. The benchmark 5/1 adjustable-rate mortgage fell to 2.76 percent from 2.8 percent.
The prices on mortgage rates came down yesterday due to the disappointing job market. Most analyst agree that mortgage rates will not move drastically until after the presidential election. After November 6, anything could happen.
A week or two after the election, new mortgage regulations are expected to be announced and ANYTHING can happen. Watch out for this: Depending on the final language in some of the rules, lenders may increase rates for buyers with small down payments and homebuyers with little equity in their homes.
The government is set to raise the guaranty-fees for all Fannie Mae and Freddie Mac loans again November 1st. We saw 10 basis point fees added to all Fannie and Freddie loans a few months ago and now an additional 10 basis points will be added to all Fannie Mae and Freddie Mac loans again. 10 basis points will add an extra $100 in costs to a $100,000 cost.
Word to the wise: If the refinance transaction or the home purchase works for you today, do it today. Regulations keep getting tighter and the fees keep going up too. If you would like a free complementary review of what financing opportunities are available to you, call me off the air at (901) 482 0354. That number again to reach me or my very capable assistant, Susan Belew is (901) 482 0354.
I know we keep “harping” about this Home Affordable Refinance Program, commonly called the HARP program. But this latest version of the HARP program rolled out in March has been breaking production records. The biggest advantage to this refinance program is that it allows homeowners to refinance with no regard to appraisal value and condition of the property. If your loan on your primary residence, second home or rental property was endorsed by
Fannie Mae or Freddie Mac prior to May 31, 2009 and you’ve made your payments on time you should be qualified to take advantage of this program. It’s a great opportunity to reduce your interest rate cost to rates in the 2.s and 3.s.
There are other plans that will help you take advantage of rates in the 2’s and 3’s. on refinances AND purchases. Thirty something percent of the mortgages we do for people purchasing homes include down payment assistance.
The other purchase mortgage loans are designed to work for the individual borrower. For instance, lowering or eliminating private mortgage insurance for people purchasing homes helps the borrower save thousands of dollars. Sometimes we combine two different types of loans to eliminate mortgage insurance or get the borrower a better price break.
This is a unique window of opportunity for refinancing to lower your payment or shorten your term or get cash out at ultra cheap interest rates. It is a unique opportunity to buy real estate for investment.
There are reports of large hedge funds planning to come in and buy up real estate inventory in the near future. This is rumored to by happening in the Los Angeles market already. There are analysts predicting that inflation and much higher rates are around the bend. If their warnings are true, the opportunity for acquiring real estate on the cheap with curb low rates is a temporary opportunity.
Give us a call to talk about WHATEVER you want to talk about. Your mortgage, your property, your credit… Join us at the coffee table by calling 901 535-WREC.
Our topic today is “Memphis Real Estate: Where We’ve Been, Where We Are & The Road Ahead” With us today we have Tom King of King and Vaughn Consulting, certified Shelby County property tax appeal experts and Larry Mayall, owner and broker of First National Realty .Tom and Larry where has Memphis real estate been? Where are we now? What does the road look like ahead?
Questions to be answered by Jo Garner
1. You mentioned that regulations continue to get tighter. What are some of the most recent regulation changes you have seen?
The biggest regulation changes are not necessarily from Fannie Mae, Freddie Mac or FHA but most of the tightening regulations are coming from the banks funding these mortgages. These extra layer of regulations are called “investor overlays” and can vary from company to company. Most of the overlays are related to the HARP program, and rules regarding investors who own more than 4 financed properties. These type loans are considered the more risky loans. Other investor overlays affect loans for borrowers with challenged credit and scores lower than 620.
2. What tips can you give borrowers to make it easier to get a loan?
A. First of all, you want to be working with an experienced mortgage loan officer.
B. Second, be prepared to supply the required supporting documents like paystubs, tax returns and bank statements within 24-48 hours from when they are requested . This should help your file move through the process faster. Remember the tighter regulations require ALL pages of your asset account statements. The source of any large deposits other than payroll will need to be verified. The easiest way to do this is to have your bank stamp and fax or scan a copy of the deposit image to your mortgage officer. The deposit image will show the source of the deposit without you having to spend a lot of time digging for it.
3. How can you tell if a customer is getting a good deal on a refinance?
A. Ideally, if you are going to keep the primary residence, 2nd home or rental property for more than 5 years, you definitely need to recapture the closing costs within less than 18 months. What I mean by that if you refinanced a $100,000 thousand dollar loan and your closing cost are $2,000 dollars and you are saving $260 per month, you would recapture your closing cost in less than 8 months.
B. If you are refinancing your mortgage and shortening the term, one way to calculate your overall savings is to look at the total number of Principal and interest payments you would pay over the term of the loan compared to the number of Principal and Interest payments you would pay over the remaining term of your current loan. In most cases you are saving tens of thousands of dollars over time.
Questions to be answered by Tom King:
1. Tom, we are talking about Memphis Real Estate: Where we were, where we are and the road ahead. You and I were talking about the values in 2007 compared to today. What are some common comparisons from 2007 vs today?
2. where do you see values going over the next 12 months? 24 months?
Questions to be answered by Larry Mayall: (Larry can suggest what he wants us to ask him)
1. Where do you see retail real estate going in the next year or two?
2. Where do you see the market for high end homes going in the next year or two?
3. Where do you see the market moving in general?
Real Estate Tip of the Week: (supplied by Tom King)
Jo Garner announces Talk Shoppe next Wednesday 9-10a at the Better Business Bureau “Landscaping Tips For the Best Curb Appeal On A Budget” by John Lawhon of Lawhon Landscaping. For more information go to www.TalkShoppe.BIZ.
Next week right here on the Real Estate Mortgage Shoppe program our cohosts will be Troy McDonald and Ken Bowley of Erin McDonald Allstate Insurance Agency. We will be talking about smart ways to use your insurance and long term care.
Jo Garner, Mortgage Office Evolve Bank and Trust 901 482 0354. www.MoneyShoppe.NET
Tom King, King and Vaughn Consulting 901 487 6989
Larry Mayall, First National Realty larry@fn1.com
For real estate solutions and market predictions for Memphsi real estate and financing, check out the podcast on Ask The Expert AM 600 .