REAL ESTATE HOME LOANS-WHAT’S NEW IN REVIEW
A lot has changed in real estate and mortgage lending during 2015. If you closed your home loan over 5 years ago, you will find more changes than you can fathom in the loan process today. Just over the last year we have implemented the last phase of the Dodd-Frank Act. The biggest changes in 2015 deal with an additional 3 day wait time after you receive your final closing disclosure (which used to be called the HUD 1 Settlement Statement.) Other changes have to do restrictions on how vendors in the lending and real estate business can have business arrangements and agreements. More of the changes on when a lender can require income and asset documents will become evident in 2016.
On September 24th, 2015 big changes became regulation for FHA appraisals. Now FHA appraisers are required to inspect the entire attic, roof, appliances and more. Due to the extra workload on appraisers for FHA appraisals, you can expect the price to go up on them too.
If you do not find the answers you seek in this blog post or on the podcast for this show, please contact me at (901) 482-0354 or connect with me at www.JoGarner.com . I know from experience how important it is to get your answer as soon as possible with the least amount of clicks.
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Good morning Memphis! Good morning to our friends in other states across the country. Thanks for joining us on Real Estate Mortgage Shoppe where we offer you solutions to your real estate and financing scenarios. I’m Jo Garner, your host, Mortgage Loan Officer and you can connect with me at www.JoGarner.com. Our show today is sponsored by Joe Rojas, Marketing Agent for Fearnley, Martin and McDonald title agency. Joe takes care of a lot of my customers and he can take care of you. Call him at 901 289-5821. If you have a real estate related question or a comment and you’re on twitter, send it to #JoGarner and we can see it while we are live December 26th, 2015. Or call us while we are live on the air at (901) 535-9732. Or if you are outside the Memphis area, call (800) 474-9732. Our general topic today is “REAL ESTATE HOME LOANS-WHAT’S NEW IN REVIEW.” Joining us back in the studio today we have Tom King, real estate appraiser with Bill King Company. Tom, take a second to greet any new listeners, tell us about what you do and give us some highlights of changes in 2015 you have seen in real estate appraisals that will affect us in 2016.
(Jo) I’ve been getting calls from some of my former clients after they got my Christmas Card. A few of my former clients are ready to go buy another property but are glad to get my new “Do’s and Don’t’s Guide” covering the changes and how to get through the loan process smoothly. Lot’s of changes took place October 3rd of this year and we are going to cover some of these during the show today. Most of the changes happened on October 3rd, 2015 for home loans in general, creating mandated wait times to give the borrower time to review the initial loan application and paperwork, time to review the appraisal and more days to review the final closing papers. In September FHA, the government-backed loan program, made some changes in their underwriting guidelines on calculating debt-to-income ratios on student loans .
(Jo) Most people who call my office believe that the mortgage rates are directly connected to the Federal Reserve Rate but they are only INDIRECTLY connected. Mortgage rates are more tied to the 10 year treasury bond yield. When the economy contracts, mortgage rates can go down even if the Fed Rate is going up. Initially when the FED raised their rate on December 16th, mortgage rates dropped because of the reaction of the bond market to the Fed’s move. Rates continued to fall until Wednesday when oil prices rallied—then rates moved to a 5-month high. Rates have been volatile like Memphis weather—if you don’t like the rate today, just wait a minute. 30YR FIXED – 4.125-4.25%; FHA/VA – 3.75%; 15 YEAR FIXED – 3.25-3.375%.Check with me for rates on the 100% VA loans, Rural Housing loans, and down payment assistance loans. If you are shopping for a low rate and payment on a jumbo loan over $417K, call me personally at 901 482-0354 901 482-0354 or connect with me at www.JoGarner.com If you want to join us on the air while we are live, call us at (901) 535-9732 outside the Memphis area (800) 474-9732. Call me and let’s MAKE YOUR PLAN, WORK YOUR PLAN. IF THE DEAL WORKS FOR YOU TODAY, DO IT TODAY.
(Jo) Tom, we’re talking about “Real Estate Home Loans-What’s New In Review.” In 2015 we saw the big ‘Know Before You Owe-T.R.I.D. lending rules go into effect. My personal team and I have been drilling on the process and can help our clients set up the process to get the loan closed smoothly and on time. As a borrower you can expect to have a full 7 days to review your initial disclosures from the mortgage company showing the official costs and money needed to close and the payment amount. In order to cut some time off the mandatory waits, you can use the e-doc signature system and get your disclosures immediately online instead of having to wait for snail mail. Two ways to speed your time from loan application to closing is to use the e-signature system online for getting and sending documents to the lender. Having all pages of your income and asset documents ready for the lender when needed will shave off a lot of processing time—even if you just give your CPA or banker permission to deliver them to the lender for you. Call me personally and I can walk you through the quickest way from application to closing. But if you want to work with me personally, you have to talk with me personally. I want to work with you. Call me at 901 482-0354 901 482-0354 or connect with me at www.JoGarner.com
(Jo) Later we are going to cover the emerging private niche Marketplace Lenders—and whether they will expand or be a flash in the pan. Are you looking for an “outside of the box” lending product? Stay tuned. Private mortgage insurance tax deductions are still available depending on your adjusted gross income. Is it better for you to pay less money down to buy your house or just eliminate the private mortgage insurance altogether? Stay tuned. 2015 enjoyed another round of historically low mortgage rates—mainly because of factors overseas, but if you have not refinanced while you can get a lower rate and if you have not purchased the house you keep talking about while the rates are low—if the deal works for you today, don’t wait too late. Call me and if the deal works for you today, let’s do it today.
Tom, what are some other buying or selling or refinancing situations you see where borrowing costs could be crucial?
2nd segment after 9:15 break: It’s time for the Look Back Memphis Trivia Contest. The Look Back Memphis Trivia Contest is brought to you by Memphis notable historian, Jimmy Ogle www.jimmyogle.com,. Jimmy Ogle offers free historic walking tours in downtown Memphis. To get his spring and fall schedule, go to www.jimmyogle.com . our Look Back Memphis Trivia Contest is sponsored by John and Jennifer Lawhon of Lawhon Landscape (901) 754-7474 the Lawhon’s can help you plan your landscaping even if you’re on a budget –even if you have a BIG, BIG project. The Lawhons are giving away a $25 gift card to the first person with the correct trivia answer. If you know the answer to one of our trivia questions, call us at 901 535 WREC 901 535-9732.
Our Trivia Question: WHO AM I?
Garner # 65 12/26/15
Center For Southern Folklore
Question: I began on Peabody Avenue in 1972, moved to Beale Street (4 locations in 20 years) and now I back with “Peabody” in my name, on South Main Street. Who am I?
Hint: I have had the same “boss” for 43 years!
Hint: My areas cover shopping, food, arts & crafts and even music.
Hint: I produce the largest free festival in Memphis annually.
Final Hint: I am “all about” the culture of the Delta and Memphis.
Answer: Center For Southern Folklore. The Center for Southern Folklore is located on South Main Street in Downtown Memphis in the Peabody Place development. The Center is a private non-profit organization dedicated to documenting and celebrating the people, music and traditions of the region. When one comes to the Center, you’re entering the home for what we love and treasure about the South. One can shop and peruse The Folklore Store to find unique gifts and works of art that speak to and about the South. One can even have a cuppa coffee and Miss Ella’s peach cobbler then come back at night to have a beer and hear a band. Judy Peiser is the Executive Director of the Center!
One can explore The Heritage Hall & Galleries and sit in our “media lounge” to view some of our documentaries about the South. Come back later and you just might catch a band or host your own unforgettable event in our unique spaces. Every year during the Labor Day weekend we present our signature event: The Memphis Music & Heritage Festival. It’s a family friendly, free festival that includes five stages of music, dance, storytelling, food and more – it’s the hootenanny that showcases the culture and traditions of the Delta region that we are pledged to “preserve and protect”.
Throughout the year the Center brings many of these performers (and a few more!) to you at its stages in The Folklore Store and in Folklore Hall for shows including blues, jazz, soul, gospel, rockabilly, country, folk, bluegrass, poetry, dance and the occasional surprise – check our calendar often! Or, better yet like out Facebook Page to stay up to date. One can also catch many of these performers and crafts people during one of our “Cultural Excursions” – field trips and tours – for a more in depth and intimate experience of this corner of the world. Create your own cultural event by hosting a meeting or party in our unique setting.
Last Week: St. Jude Children’s Research Hospital. St. Jude was founded by entertainer Danny Thomas in 1962 on the premise that “no child should die in the dawn of life”. This idea resulted from a promise that Thomas, a Maronite Catholic, had made to a saint years before the hospital was founded. Thomas was a comedian who was struggling to get a break in his career and living paycheck to paycheck. When his first child was about to be born, he attended Mass in Detroit and put his last $7 in the offering bin. He prayed to St. Jude Thaddeus for a means to provide for his family, and about a week later, he obtained a gig that paid 10 times what he had put in the offering bin. After that time, Thomas believed in the power of prayer. He promised St. Jude Thaddeus that if he made him successful, he would one day build him a shrine. Years later, Thomas became an extremely successful comedian and built St. Jude Children’s Research Hospital as a shrine to St. Jude Thaddeus to honor his promise. In 1957, Thomas founded the American Lebanese Syrian Associated Charities (ALSAC), which helped him realize his dream. ALSAC is also the fundraising organization of St. Jude. Since St. Jude opened its doors in 1962, ALSAC has had the responsibility of raising the necessary funds to keep the hospital open. Memphis was chosen at the suggestion of Roman Catholic Cardinal Samuel Stritch, a Tennessee native who had been a spiritual advisor to Thomas since he presided at Thomas’s confirmation in Thomas’s boyhood home of Toledo, Ohio. In 1962, the success rate for curing the catastrophic diseases of cancer and leukemia was about 4% and the operating budget was $1 million for the entire year. Today, the success rate is over 90% and the cost is $2 million – a day! St. Jude receives patients regardless of race , creed, color or nationality – and parents do not pay for travel, lodging or meals while in Memphis. If the “goal” of St. Jude is to close, that only means that “the cure has been found”. The week of December 1-5 is St, Jude Marathon Weekend in Memphis.
Jimmy Ogle gives free outdoor walking tours on the sidewalks and parks in Downtown Memphis during the Spring and Autumn of each year, but not during the Winter! The D’Army Bailey County Courthouse Tour (indoors): Third Thursday each month at 12:00 noon – next is Thursday, January 21.
Go to jimmyogle.com for the 2016 Spring Season schedule and locations.
QUESTIONS ANSWERED BY TOM KING:
1. What are some specific changes that have occurred with underwriting rules….especially with appraisals?
2. What are your tips for homebuyers or homeowners who need to get an appraisal on a property?
3. How does the “firewall” work between a lender and an appraiser?
4 What type appraisals can you do without having to go through a third-party agency?
QUESTIONS ANSWERED BY JO GARNER:
1. What is YOUR review of what has been new in 2015?
(Jo) A. MarketPlace lenders are non-bank, non-traditional loans from individual investors to their peers—like an UBER-like lender whose loans are mostly unsecured to bypass some of the new regulations set in place for low-fixed rate standard mortgages. Freddie Mac said in its December issue of Insights and Outlook that MarketPlace lenders are innovative and growing rapidly. They have not determined if these niche MarketPlace lenders are short-lived or will be changing the lending landscape permanently during 2016. One thing is sure –changes are coming in the niche lending market. Stay tuned.
B. Good news for those of you paying some form of mortgage insurance—your tax deductions are still in place if you have an adjusted gross income below $100,000 . It starts to phase out after that. Check with your accountant.
C. Trends in 2015 for renters is that it generally costs less per month to own a home rather than rent one. The households that are building wealth are leaving renters in the dust. Talk to an experienced realtor and an experienced mortgage loan officer to determine what you will need to own your own house. Call ME. I would like very much to compare the numbers with you.
D. The majority of homes prices in the U.S. are rising, but some markets have experienced a decline in home values. About 30 percent of all homes nationwide (27.9 percent) lost value in August from a year earlier, whereas 70% of home values across the nation stayed steady or increased in 2015.
E: There were some underwriting guidelines changed for FHA and Fannie Mae loan products. Fannie Mae’s guideline changes gave more options for counting income for self-employed business owners that do not have a full 2 years history in the business. FHA’s big game-changer was requiring a payment to be counted from student loan debt even if the student loan debt has been deferred.
2. In your opinion, who are the winners and losers in 2015?
Winners are the homeowners who refinanced their homes to lessen their payments and were able to recapture their costs quickly. Other winners are homeowners who were able to refinance their homes and save TENS of thousands of dollars by shortening their loan terms and lowering their interest all at the same time. Some of my clients were able to all of this without even having to have an appraisal on the property under special government programs.
If you started out as a renter in 2015 but bought a house with a low fixed interest rate on a house with better amenities and a payment the same or less per month than you paid in rent, you came out a winner with bragging rights.
REAL ESTATE TIP OF THE WEEK: Tom King shares a practical, money-saving, time-saving real estate related tip of the week.
Transitional Music: “I’m Alright” by Kenny Loggins; “Brand New Day” by Sting; “Keep On Rolling” by REO Speedwagon; “Memphis” by Johnny Rivers for Look Back Memphis Trivia Contest ________________________________________________________________________
This Wednesday December 30th, 2015 9A-10A CT will not meet but we will resume on Wednesday January 6th, 2016. Talk Shoppe offers networking and education to anyone interested in real estate or business every Wednesday 9A-10A at University of Phoenix in Memphis 65 Germantown Court 1st floor across from Germantown Parkway from the Ag Center. Talk Shoppe events are free for the next two months thanks to our sponsors and advertisers –me, Jo Garner, Mortgage Loan Officer 192.232.195.219, Troy and Lynn McDonald of Erin McDonald Allstate Insurance Agency, Gwen Christensen, owner of Builders Floor and Interiors, Pat Goldstein, Realtor with Crye-Leike, Tim and Katie Gilliland of BackupRX, and Mary Lou Nowak of Home Helpers. For more about Talk Shoppe, go to www.TalkShoppe.com
Troy & Lynn McDonald of Erin McDonald Insurance Agency (901) 849-7101
Gwen Christensen, Owner of Builders Floor and Interiors www.buildersfloorsandinteriors.com
Pat Goldstein, Realtor with Crye-Leike Realtors, Inc (901) 606-2000
Tim and Katie Gilliland of BackupRX www.backupRX.com
Mary Lou Nowak of Home Helpers (901) 414-9696
REAL ESTATE MORTGAGE SHOPPE 12-26-15 WAS SPONSORED BY JOE ROJAS, MARKETING AGENT FOR FEARNLEY, MARTIN & MCDONALD 901 289-5821.
FOR THIS PODCAST OF REAL ESTATE MORTGAGE SHOPPE AND MORE, GO TO JOGARNER.COM
Call me and let’s MAKE YOUR PLAN, WORK YOUR PLAN. IF THE DEAL WORKS FOR YOU TODAY, DO IT TODAY.
QUOTE CORNER: “If you want something new, you have to stop doing something old”
― Peter F. Drucker
“Change is the end of something you know and the beginning of something else that you don’t know. Something new that holds opportunities.”
― Kholoud Yasser
SPONSORED BY JOE ROJAS, MARKETING AGENT FOR FEARNLEY, MARTIN & MCDONALD (901) 289-5821
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Rejoiners:
Jackie Woodside, (Marlborough, Massachusetts,) author of Calming the Chaos, chosen by Inc. Magazine to be one of the top 10 Motivational books in 2015. www.JackieWoodside.com
Don Hutson, (Memphis, TN) national speaker and a best-selling author of The One-Minute Entrepreneur, The One-Minute Negotiator and most recently released Selling Value www.DonHutson.com
Marx Sterbcow, (New Orleans, LA) Sterbcow Law Firm (National RESPA expert)
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ABOUT TOM KING, APPRAISER WITH BILL KING COMPANY
Tom is a well- respected and sought after appraiser in Memphis, Tennessee. He is a second generation appraiser with 40 years experience. He has been elected to the Memphis Area Association of Realtors Board of Directors three times.
Tom is a certified residential appraiser in Tennessee. He have appraised over 20,000 homes in his career. A graduate from the University of Tennessee with a degree in real estate, Tom is also a Certified Relocation Professional (CRP). Tom also has vast experience in dealing with the county and state boards of equalization and in valuations of property for tax appeal purposes. (901) 487-6989
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ABOUT JO GARNER, MORTGAGE LOAN OFFICER –
www.JoGarner.com (901) 482 0354 jo@192.232.195.219 @jogarner
Jo describes her job description: “As a mortgage loan officer, my job is to give my client the benefits they want from their financing terms– listening to my client and determine what’s of the most value to THEM– What is their comfort level on a house payment, how much are they comfortable paying down, what type of financing do they need to get the house they want to buy or refinance. Different clients have different priorities in life—some are buying their first home with very little down payment funds. Some are recovering from medical challenges, divorces or preparing to send children to college and some are embarking on a long term goal of buying properties to build rental income. Whatever their personal priorities are, my job is to put together a mortgage with comfortable terms that will help them achieve their goals.”
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 20 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.com She was also the editor of Power Shoppe, a free weekly e-zine designed for real estate professionals and others indirectly connected to the real estate industry and currently publishes on her blog www.JoGarner.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.
PHOTO GALLERY FROM THE 12-26-15 SHOW: