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Good morning to you, Memphis! You are on the Real Estate Mortgage Shoppe program with me, Jo Garner, Mortgage officer wit Evolve Bank and Trust. Today we can talk about ANYTHING you want to discuss about your real estate, your mortgage, your credit, even tips on how to move to your next home or back again.
Our topic? “Moving Your Mortgage Rates Down & Tips On Moving Up To Your Next Home” Grab your coffee, then grab your phone and call us at 901 535-WREC. That number to join us around the coffee table is (901) 535-9732.
Our co-host today is an expert on how to move your stuff to your next castle. We have Lynn Lanigan of Lanigan World-wide Movers in the studio with us today. You may have seen Lynn’s picture on some billboards around the city . She’s fondly called the “Orange Truck Lady.” Lynn, tell our audience a little about yourself and what you do…
Lynn, you have a great reputation for taking care of your customers when they move to the next home. I have personally heard several good testimonies from people who have used you and your company.
Mortgage rates have been doing some moving too–moving DOWN to the lowest levels in modern history. The Federal Reserve has gifted borrowers a once-in-a-lifetime opportunity by buying $40 BILLION dollars of mortgage backed securities every month, opening doors to new groups of refinancers and a surprising surge in homebuyers.
The 30-year fixed-rate mortgage fell to 3.25 to 3.55 percent from 3.7 percent. The 15-year fixed-rate mortgage fell to 2.75 percent from 2.95 percent. The benchmark 5/1 adjustable-rate mortgage fell to 2.68 percent from 2.69 percent.
Word to the wise: If you need to save some money or free up some money, mortgage money is on the cheap, BORROW IT.
Home prices increased 1.6 percent in July, compared to June, according to the latest Standard & Poor’s 500 index/Case-Shiller 20-City Composite Home Price Index. Single family housing starts are well ahead of last year’s pace, existing home sales are up too. These upbeat trends continue. Prices on these homes are gradually going back up too and lots of people are suddenly out writing contracts to buy houses this week and last week. The idea is, “better jump in now and buy that house while the price is still a bargain and while the rates are still a bargain too.” Don’t get caught sleeping while everyone else is building their wealth. Here’s a news flash: Parts of Memphis have already converted from a Buyer’s market to a seller’s market.
Lynn, here is an eye-opening example of why NOW is a great time to buy a home. What I am about to share with you is a comparison of where we were in 2006 compared to this week. Rates are less than HALF what they were at the peak of the housing bubble in mid-2006 when the median house price was about $250,000 dollars and the average interest rate was about 6.75% for a 30-year term.
A person who bought a home in 2006 with 20% down would have made payments of $1,300 a month. Today, a person who buys the same house at the current median price of about $162,000, would pay less than half that amount, about $564 a month. Today your mortgage payment per month would be $700 LESS than in 2006 on the same house Its time to buy houses and its time to refinance some.
Of course, today we have down payment assistance available to qualified homebuyers and can get some of you into your home with zero down using special funds. Even if you didn’t qualify for some of the down payment assistance programs, FHA will still allow you to get in for only 3.5% down payment–and that ‘s all you need if the seller agrees to pay your closing costs .
If you are ready to buy a home or refinance one, I would like VERY much to crunch those numbers down for you. My very capable assistant, Susan Belew and I want to talk you–find out what you want your financing to accomplish. We can put together some mortgage scenarios to compare and get you some bragging rights on your financing. Call me directly OFF the air at 901 482 0354. That number to reach me directly is 901 482 0354.
The Home Affordable Refinance Program, better known as HARP, is still the most popular refinance program .This helps homeowners who owe more on their homes that their home’s current value since there is no appraisal required. This program is great for people who are not underwater too because it is nice not to have to pay for an appraisal. Mortgage rates on these programs hover around the 2’s and 3’s. That’s good too.
The other most popular mortgage refinance program is the FHA Streamline program which does not require an appraisal either. This program is for people who have an FHA loan and want to refinance to another FHA loan with a rate in the 2’s or 3’s. If your old FHA loan was endorsed by FHA prior to May 31, 2009, you no longer have to pay the higher mortgage insurance premiums in place today. You can get the much lower mortgage insurance premium. This is a recent change, so if you got a quote for an FHA refinance prior to June of this year, call me and let’s see the numbers with the lower MIP. My number to talk directly is (901) 482 0354.
Lynn, we’ve been talking about mortgage rates moving lower and our topic today is “Moving Your Mortgage Rates Down & Tips On Moving Up To Your Next Home”. Lanigan Movers has been moving people’s stuff since 1955. What are some tips to those out there planning to move?
Questions for Lynn Lanigan to answer: (Lynn please give me some questions to ask you)
1. Why is it important to use a local moving company. What are the advantages to using a local company -even if you are moving across the country or across the world?
2. What are some services you offer at Lanigan Moving that some other companies do not offer? What are these extras important?
3. What are some techniques Lanigan Worldwide Moving Allied Vanlines uses to make sure the estimate the customer gets is a firm quote without any negative surprises?
4. What are some pitfalls you want to avoid when you are moving your stuff?
5. Gwen Christensen with Builders Floors and Interiors shared an example of why you need to use a reputable moving company like Lanigan Worldwide Moving Allied Vanlines handle the move to avoid having to call Builders Floors and Interiors 901 382 2155 to repair floor damage. Gwen Christensen, like Lynn Lanigan, puts a high priority on excellent customer service when she sells flooring products and installs.
6. Charlotte Bergman, local civil servant and politician called in and shared her experience with knowing the loyalty of Lynn’s employees and mentioned their very low turnover.
Questions for Jo Garner to answer:
1. What are some of the programs you have available for people wanting to buy a house now?>
A. First-time homebuyers like the mortgages that don’t require a lot of money down. In most cases they’ll qualify for several local down payment assistance programs. This can get a buyer into a house with zero dollars down to $750 or so out of pocket.
B. Others who want to put more down, use the traditional conventional loan programs . To get that buyer into the home with the least amount of cost AND eliminate the unnecessary mortgage insurance, sometimes we combine a first mortgage with a small 2nd mortgage. This keeps the first mortgage under 80% loan to value and yet the homebuyer doesn’t have to spend the full 20% on the down payment and he still keeps to eliminate the mortgage insurance costs. .
C. We also have the FHA 203K renovation and repair loan for owner occupants and also for real estate investors. This loan is great if you are buying a fixer-upper with a lot of repairs needed because this loan finances the purchase of the home AND the repairs.
2. What are some good reasons people refinance their homes?
A. The No. 1 reason to refi is to get a lower mortgage rate and pay much less interest cost. These borrowers either go back to a 20 or 30 year term and lower their house notes several hundred dollars a month or they choose to shorten the term on their loan and save TENS of thousands of dollars overall.
B. Another group of customers come in with adjustable rates and want a fixed rate so if inflation hits and rates start moving up again, they’ll be enjoying a stress-free, low fixed rate.
C. Some people see an opportunity and refinance and pull cash out of their property if they have enough equity freed up on the house. They take the cash out from the refinance and pay off other high-interest rate debt, or they use it to buy more real estate for investment and other reasons.
D. Changes in the family structure such as divorce or death of a family member can result in the home mortgage needing to be refinanced.
Real Estate Tip of the Week:
Jo Garner has two announcements to make toward the end of our broadcast:
Talk Shoppe offers free education and networking to anyone interested in real estate or business. The events are free every Wednesday 9a to 10a at the Better Business Bureau 3693 Tyndale Memphis, TN 38125. This coming Wednesday 9a-10a October 3rd, Lance and Terri Walker of Walker Auctions will be giving a short tutorial on how to buy at an auction. Then they will be the auctioneers for Talk Shoppe’s Auction for Make A Wish. If you have an item you would like to donate please call me at 901 482 0354. We welcome donations and we welcome bidders. You can get some great bargains at this auction on Wednesday. For more information, go to www.TalkShoppe.BIZ
Next Saturday 9a to 10a right here on the Real Estate Mortgage Shoppe program we have Don and Holly Swogger of Homevestors. They’ve been in the real estate buying and managing business for many years and have a lot of wisdom to share with us.
Jo Garner, Mortgage Loan Officer Evolve Bank and Trust (901) 482 0354 jogarner@mindspring.com www.MoneyShoppe.NET
Lynn Lanigan, owner of Lanigan Worldwide Moving an Allied Van Lines
(901) 744-7070 www.laniganalliedvanlines.com
Gwen Christensen, Builders Floors and Interiors www.buildersfloorsandinteriors.com (901) 382 2155
Charlotte Bergmann, local civil servant and politician www.charlottebergmann.com
For rates, home financing options for refinances or home purchase loans in Memphis or around the country, Jo Garner and her team would like to offer you solutions. For great advice and excellent service when you are ready for a moving service whether you are moving across the country or right here in Memphis, Lanigan Worldwide Moving an Allied Vanlines company can help.