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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 today is Tom King, an experienced appraiser and certified Shelby County Real Estate Property Tax Appeal Expert with King and Vaughan Consulting.
Tom, it’s always a pleasure to have you on the show.. Tell our audience about yourself and what you can do for them as an appraiser and as a tax appeal expert
Our featured guest today is Cole Epley from the Memphis Business Journal. Cole, you put out some great information for the business community in the Memphis Business Journal. I know the Memphis Business Journal is a very important tool in my business tool box. Tell our audience a little about yourself and what you do.
Our topic today is “Mortgages and Taxes: Position Yourself Economically To Stay On Top” We want you around the coffee table with us this morning. If you have a question or a situation related to your real estate or your real estate financing where you need a solution, give us a call at 901 535-WREC. That number again to join us on the air is 901 535-9732.
Rates this week on the 30 year fixed rate program remained unchanged, inching down a little more yesterday morning. The 30 year fixed rate stayed at about 3.57% this week with FHA 30 year loan program even lower than that. The 15 yr fixed rate fell to around 2.88% from 2.89 percent. The 5-1 ARM adjustable rate was unchanged around 2.72 percent.
We have those “Magic Binoculars” in the studio again this week-the ones that let us take a peek into the future. I warn everyone, though, Tom says the lenses are a little foggy when he looks through them. And, well, the lenses seem a bit cloudy to me too. But, …hand me the Magic Binoculars please, Tom. Here is what I see happening with mortgage rates in the future–at least the next year.
I see what appears to be the European Debt Crisis continuing and foreign investors continuing to park their money in US mortgage backed securities. I see what looks like our Federal Reserve continuing to buy massive amounts of mortgage-backed securities (I mean for the last several months the Fed has been buying $40 BILLION dollars worth per MONTH.) All of the mortgage-backed securities buying looks as though it will keep our mortgage rates low—about where they are now, maybe going a little higher.
(Jo says to Tom) Tom, look what happens when you turn this knob a little on the binoculars…. I see more financial regulation coming, but wait, there’s the realtors and the Bankers Association and some others resisting and fighting back. I can’t see who is winning the battle against stricter lending regulation but I do have a word to the wise for anyone planning to buy a house or refinance one—if the deal works for you today, do it today.
My assistant, Susan Belew and I would like very much to talk with you and put together some different financing options for you to compare while the rates are at historic lows–and before heavier loan regulations prevent you from being able to qualify. If you want to talk with us OFF the air, call us directly at 901 482-0354. That direct number to talk with me directly OFF the air is 901 482 0354.
There are actually TWO most popular refinance products right now. The first one is the Home Affordable Refinance Program, otherwise know as the HARP program. This program is GREAT for homeowners underwater, (owing more on their homes than the current value) because the HARP program doesn’t require an appraisal value. Its good for homeowners who are NOT underwater too. Homeowners can refinance to these low rates in the 2’s and 3’s and save hundreds of dollars per month or shorten the length of their
mortgages with the HARP program. You can even borrow the closing costs.
The other popular refinance product is the FHA Streamline refinance where there is no appraisal required. The FHA streamline program, unlike the HARP program, will not allow you to borrow the closing costs. But Susan and I have a way we can still get you closed on this loan without you having to come up with money–or at least very little money. Give us a call directly off the air and let’s talk–let’s do the numbers for you. (901) 482 0354. The direct number again is 901 482-0354.
Speaking of no money out of your pocket—-if you are planning on BUYING a house, we have some great down payment assistance programs under certain restrictions. If you are planning on buying a primary residence, a vacation home or an investment property, please call me and let’s look at your financing options
Tom and Cole, our topic today is “Mortgages and Taxes: Position Yourself To
Economically Stay On Top.” Later in the show we’re going to hand these Magic Binoculars to Cole Epley from the Memphis Business Journal, but for right now, Tom, I’m going to hand back to you.
As a 35- year veteran real estate appraiser and certified tax appeal expert, we are talking about how to position ourselves financially for the future to stay on top what do YOU see in the future for real estate values in Memphis?
Questions to be answered by Tom King–
1. What data do appraisers use to determine the value of a residential home?
2. What are some of the most common misconceptions homeowners have about how the value on their home is determined?
3. What are the common causes for the Shelby County Tax Assessment Value on a residential home to come in too high?
4. When will homeowners know what the new Shelby County tax assessment value is for 2013?
5.
Questions to be answered by Cole Epley–
1. Cole, writing for the Memphis Business Journal, you must do a lot of research on
the Memphis economy, the Shelby County tax debate and more. Where do you see our economy headed over the next year or two, especially as it pertains to Memphians?
2. What is your outlook for the Memphis real estate market? What has been happening in this market over the last few quarters?
Questions to be answered by Jo Garner –
1. Jo, the last time we had the Magic Binoculars in the studio, you accidentally looked through the wrong end . What did you see ?
Jo answers: Tom, that day I looked backwards through the Magic Binoculars…whoa, I saw Memphis back in the 1800’s. In 1870 Amos Woodruff was building the Woodruff-Fontaine House at 680 Adams. He paid about $12,000 for the land and it costs him $40,000 dollars to build that 9,000 square foot mansion. Today, Shelby County has it assessed at over a half a million dollars but its probably worth a lot more.
I saw a bulletin posted for the clerical workers at a Cotton Mill. Wow, and we thought WE had to work long and hard on OUR jobs today. Get this—in 1852 when the labor laws cut the work week, workers were to show up punctually at 7 AM and could not leave until 6 PM with no lunch breaks, no talking and NO SMOKE BREAKS either. You were expected to bring your own lunch to eat while working and, in winter, each employee was expected to bring 4 pounds of coal to help warm the office.
You could only answer the call of nature after asking the supervisor and then you were instructed to go outside to the garden area.
Rule 12 read “The owners recognize the generosity of the new Labor Laws, but will expect a great rise in output of work to compensate for these near utopian conditions.”
Question #2 for Jo:
2. We’re talking about positioning ourselves economically to be on top in the coming days. Where do you see the lending industry heading over the next year or two?
(Jo answers) A. I see the mortgage rates staying relative low for the next year due to the money from the Federal Reserve and foreign investors.
I see loan restrictions getting tighter for the first little while and then beginning to loosen up just a little because of the push-back from the banks and real estate professionals
I see Fannie Mae and Freddie Mac, the government’s biggest buyers of mortgages, continuing to increase their fees on loans.
To counter the attempted phase-out of Fannie Mae and Freddie mac, I see highly capitalized companies coming onto the real estate stage, offering less restrictive, more creative mortgage loan programs, making it easier to get financing.
My word to the wise: Buy real estate today while you can get it for Bargain-Basement Pricing. Refinance real estate today and save yourself THOUSANDS of dollars you can use for upcoming opportunities.
3. What are some guidelines you can share our listeners for being qualified to get the HARP program to refinance without an appraisal?
Real Estate Tip of the Week-. (Tom King and Cole Epley have a timely tip for renters comparing affordability of rent vs buy)
Jo announces upcoming events: On Wednesday November 14th, 2012 at the Better Business Bureau from 9a to 10a Talk Shoppe will be presenting a panel of real estate experts to talk about Memphis Real Estate: Where We Are & The Road Ahead. Our panelists are Larry Mayall, owner and real estate broker of First National Realty, Richard Scarbrough, experienced investor and realtor with First National Realty and I get to be on the panel with them to answer questions related to real estate financing. For more information go to TalkShoppe.BIZ.
Tomorrow, that’s Sunday November 11th the Victorian Village is having their Tent Revival (that’s revival of neighborhood revitalization) from 1pm to 5pm at Adams Ave and Neely St. Its gonna be fun and there will be food too. For more information, go to www.victorianvillageinc.org.
Next week right here on the Real Estate Mortgage Shoppe program we have Troy and Lynn McDonald of Erin McDonald Allstate Insurance Agency.
See you next week!
Bumper songs for transitions: “Tax Man” by the Beatles, “Taxes Everywhere” Matt Cline, and “For The Love of Money” by O’Jays
Jo Garner, Mortgage Officer with Evolve Bank and Trust 6070 Poplar Ave Ste 250 Memphis, TN. 38120 (901) 482 0354 www.MoneyShoppe.NET.
Tom King, 35 + year veteran real estate appraiser and certified Shelby County Property Tax Appeal Expert at King and Vaughan Consulting. (901) 487-6989
Cole Epley, writer and reporter for the Memphis Business Journal cepley@bizjournals.com
Gwen Christensen, Builders Floors and Interiors www.floorcoveringmemphis.com Tel: 901-382-2155
If you want to get solutions to your real estate or real estate financing challenges, check out our podcasts or contact Jo Garner, loan officer with Evolve Bank and Trust. For more information on the property tax appeals, contact Tom King of King and Vaughan Consulting. For more information on your mortgage financing options, contact Jo Garner, Mortgage Consultant 901 482 0354.