Welcome to the Real Estate Mortgage Shoppe program. I’m your host Jo Garner, Mortgage Professional with Evolve Bank and Trust and our co-host today has been voted #1 CEO in Memphis for 2013, Lynn Lanigan of Lanigan Worldwide Moving-An Allied Agent. Good morning everyone! Good morning, Lynn Lanigan!
The Real Estate Mortgage Shoppe is the radio show designed to offer you solutions to your real estate and financing challenges. If you have a question, a challenge or maybe you have a solution for a caller, give us a call on the air at 901 535-WREC. That number again to join us around the coffee table is 901 535-9732. Our general topic today is “Moving Down The Path To New Opportunities: Buying A Home In A Rising Real Estate Market.”
Lynn, our housing market has really heated up and it’s so hot you can almost hearing it frying on the grill. Joe Spake, a realtor with InCity Realty and blogger from right here in Memphis said on his website “Year to date unit sales are up 16% from 2011, while June sales had a 2.4 % drop from last year. Median sale price stayed level at $98,000 year over year, while average sale price jumped over 9% to $146,198. Statistics 101 teaches the difference between median and average. I like the average as way to view market trend- sales prices are going up.” Those comments from Joe Spake InCity Realty Memphis Tn
Mortgage rates have been sizzling too. Mortgage rates have made an overall move upward which is one of the fastest on record. Then after taking a deep breath, the market exhaled yesterday letting the rates drop precipitously yesterday before making some adjustments higher again. The 30 yr fixed rate conventional loan ended around 4.5% Friday afternoon with no points. The 15 yr ended around 3.7%. FHA and VA rates are a little lower.
Will this affect the housing market? How do YOU think it will affect the housing market? From a mortgage standpoint, it IS decreasing the buying power of the aspiring homebuyers.
Here’s an example: A few months ago we quoted a 3.375% 30 yr fixed rate with no points. If you were qualified for a max $884 principal and interest and you wanted to buy a $250K thousand dollar home with 20% down—today your principal and interest payment would be about $999/mo—–reducing the buying power about $25,000 dollars.
But let’s look at another comparison— in 2005 the 30 year rate was around 5.875% . Let’s step in time for a second—if you were buying the same house we just mentioned for $250,000 with a loan of $200,000 but you had to pay the 2005 rate of 5.875%, your principal and interest rate would be around $1,183 principal and interest payment per month. Today, June 29th, 2013 , with the 4.375% rate, your payment is about $184 dollars per month less than you would have paid in 2005. Your buying power on that house today is still about about $37,000 more than it was just a few years ago. The opportunity to buy a house with a comfortable payment is superb right now!
One of the biggest challenges to getting the home you want at the price you want is that the competition has been pretty stiff, with sellers getting multiple offers from different aspiring buyers. Here’s a tip to the wise—if you’re a buyer, get preapproved before you set out to find the house of your dreams. Susan Belew and I would like very much to talk with you about your goals and your comfort level on payments and money down. We can give you a much stronger preapproval if we have a change to check your paystubs and latest tax return. We can also explore various loan products that will help you get the best rate with move-in costs that makes it easy for you. If you want to talk with me or Susan directly, give us a call OFF THE AIR at 901 482 0354. That direct number again is 901 482 0354. Or catch us on our blog at www.mortgageloansblog.com
Refinances have slowed a bit with the rates making their record leap but people are still refinancing. So many “rate fisherman”—those people who were trying to catch the lowest rate— over the last 2 weeks were shocked and dismayed
We still have the special refinance programs that do not even require an appraisal value. We have the special HARP program for primary residences, 2nd homes and even for your investment properties. If you currently have an FHA loan or USDA loan –you don’t need an appraisal at all. It doesn’t take but a few minutes for Susan and I to calculate refinance and purchase financing options for you. Give us a call directly at 901 482 0354 or catch us on the blog www.mortgageloansblog.com
Today we’re talking about “Moving Down The Path To New Opportunities: Buying A Home In A Rising Real Estate Market.” With the rise in home sales, Lynn Lanigan, I bet you’re phones are ringing from people needing a good mover to get them moved from their old home to the new one. What words of wisdom do you have for our listeners out there who are thinking about moving their stuff?
Questions answered by Lynn Lanigan:
1. What sets Lanigan Moving apart from their competition
2. How do your estimate and set your pricing so there are no surprises to homeowners who are moving?
3. How do you work with homebuyers who have delayed closings? What are your remedies?
4. Your company dedicates one person to stay with the customer from the planning stage and during the move and after move. How does that work?
5. Where can your customers go to have a step by step plan for putting their move together with the least amount of expense and time investment?
Questions answered by Mark Ruleman (financial expert caller)
1. Where are the mortgage rates headed this year?
2. Where are the opportunities for people investing in stocks and in real estate?
3. Mortgage rates surged up at a record pace over the last 2 weeks. What is the Fed doing to cause this?
Questions answered by Jo Garner
B. Where do you see the biggest opportunities right now in the real estate market?
I sit in the mortgage office all day every day and I see the biggest opportunities coming from mortgage rates that are still at historic lows giving homebuyers the ability to buy bigger and better houses at lower costs and lower monthly payments. I used a real example earlier in the show about the difference in buying power from today compared to January 2005. Here’s an example: A few months ago we quoted a 3.375% 30 yr fixed rate with no points. If you were qualified for a max $884 principal and interest and you wanted to buy a $250K thousand dollar home with 20% down—today your principal and interest payment would be about $999/mo—–reducing the buying power about $25,000 dollars.
But let’s look at another comparison— in 2005 the 30 year rate was around 5.875% . Let’s step in time for a second—if you were buying the same house we just mentioned for $250,000 with a loan of $200,000 but you had to pay the 2005 rate of 5.875%, your principal and interest rate would be around $1,183 principal and interest payment per month. Today, June 29th, 2013 , with the 4.375% rate, your payment is about $184 dollars per month less than you would have paid in 2005. Your buying power on that house today is still about about $37,000 more than it was just a few years ago. The opportunity to buy a house with a comfortable payment is superb right now!
B. . Home sellers seem to sitting in a comfortable seat for a lot of areas around Memphis where bidding wars are going on from multiple buyers wanting to purchase their properties. Since we have a shortage of homes for sale, the law of supply and demand is beginning to push up prices. But with the low rates, you might be able to sell and get a lower payment for a larger home than the payment you had on your old home.
C. Real estate investors still have an opportunity to buy rental property at a reasonable price and with the low mortgage rates they can still get a positive cash flow and continue to build their long-term wealth.
2. What are some of the most common reasons home purchase closings get delayed and what can you do to help?
One of the most common reasons for closing delays are due to complications with customer documents—especially bank statements that are turned in right before the file goes to underwriting where large deposits appear. The government guidelines are strict on the requirement for borrowers to document the details of the source of these deposits. The easiest and usually the fastest way to fix this condition is to get the borrower’s bank to fax or scan over a copy of the image of that deposit clearly showing its source.
Another common reason for closing delays is the appraiser’s requirement to have repairs completed on the house being purchased before it can close. There are a number of ways we can expedite a closing in cases like this. If you’re in that situation, ask your lender if you can set aside money in an escrow account to complete the repairs AFTER closing. In the case of needing a heating and air conditioning system installed, ask your lender if you can have a certified HVAC company install in the morning and certify it is functioning and then close that afternoon. You don’t want to leave HVAC units unattended too long because you take a chance on getting them stolen.
These are just a couple of common reasons. If you have other challenges delaying you, give us a call and we can look for solutions.
Real Estate Tip of the Week: (Lynn Lanigan has 1 to 2 minutes to share a practical tip about moving that will make it easier or save the person moving time and/or money)
Jo has two announcements: Talk Shoppe offers free education and networking for anyone interested in real estate or business every Wednesday from 9A to 10A at DeVry University 6401 Poplar 6th floor across from International Paper. Devry offers classes online or in person right here in Memphis. Talk Shoppe meets in one of the large classrooms. This Wednesday Holly Swogger of Homevestors and Attorney Anthony Bradley are going to be talking about some little-known, valuable Veteran benefits for Vets and their surviving spouses. For more info about Talk Shoppe go to www.TalkShoppe.BIZ
Next Saturday on the Real Estate Mortgage Shoppe program Don and Holly Swogger of Homevestors will be talking about a community plan to bring a 4th Veteran’s Home to the Memphis area. We have an aging veteran population and the nearest State Veteran’s Home is 96 miles away. We will be talking about veteran mortgages and other benefits right here on News Radio 600 WREC.
If you have suggestions on topics or ideas on how you can help us improve This show—The Real Estate Mortgage Shoppe right here on News Radio 600, let us know your ideas and suggestions. For this podcast and past podcasts go to www.mortgageloansblog.com
Transitional songs: “On My Way” by Phil Collins from movie “Brother Bear” ; “Moving On Up” the Jeffersons; “Go West” by the Village People
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
Lynn Lanigan of Lanigan Worldwide Moving –An Allied Agent (901) 827 0600 .
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.