Good morning, Memphis! You are on the Real Estate Mortgage Shoppe program with me, Jo Garner, mortgage officer with Evolve Bank and Trust. Today sitting around the coffee table with us we have Troy and Lynn McDonald, of Erin McDonald Allstate Insurance Agency.
Our topic today is “Renters Insurance And Getting Ready For First-time Homeownership.”
Grab your cup of coffee and join us around the coffee table today by calling 901 535-WREC. That number again is (901) 535-9732.
The up and down good news/bad news cycle is making me dizzy, Troy/Lynn. One day we have bad economic news sending our mortgages down a little–then good news brightens the next morning and back up we go with the rates. Its feels like you are glued to this see-saw and can’t hop off. But… mortgage analysts say the upward trend won’t last long—-or will it? What are YOUR thoughts on mortgage rate trends? Some of you who watch the market closely everyday, give us a call with your outlook. (901) 535 WREC.
1. A better-than-expected US retail sales report showed improvement for the first time in 4 months and consumer spending accounts for more than 70 percent of U. S. economic activity.
2. The National Association of Home Builders said Wednesday that builder confidence increased for a fourth consecutive month in August.
3. There was some optimism overseas with the European debt crisis (but that has been on again off again too)
The benchmark 30-year fixed-rate mortgage rose to 3.86 percent from 3.81 percent. Four weeks ago, it was 3.78 percent. The benchmark 15-year fixed-rate mortgage rose to 3.05 percent from 3 percent. The benchmark 5/1 adjustable-rate mortgage rose to 2.93 from 2.91 percent.
When investors become more confident about the economy, there’s less demand for safe investments such as U.S. Treasury and mortgage bonds unless the US bonds offer a higher yield to attract these investors back to them. However, when you raise the yield on these bonds to attract investors, you take the mortgage rates up with them.
That is what happened this week. Yesterday, it was like the investors played hookey and the mortgage rates inched back down a few centimeters. Its that see-saw thing again. Up and down, up and down…
Every week we talk about the program everyone has been “harping” about…the Home Affordable Refinance Program, commonly referred to as the HARP program. If you or anyone you know would like to refinance without an appraisal, you may be able to do it on the HARP program, the FHA Streamline program or yet ANOTHER program. Of course, restrictions apply. These programs are good for people who are underwater–they owe more than the home is worth–but even if you are NOT underwater, its nice to refinance without the cost and trouble of a full-scale appraisal.
First -time homebuyers and homeowners buying their 2nd and 3rd homes have been out writing contracts lately. My assistant, Susan Belew and I would be glad to talk with you or someone you know that wants to refinance a home or buy one. Its important that the loan product you sign up for today helps you achieve your short term goals, but it also needs to be set up to help you reach your goals in the future too. Call us directly for a private conversation at 901 482 0354. That number again off the air is 901 482 0354.
Even though rates have fluctuated over the last couple weeks inching upward, a rate in the upper 2’s and into the 3’s is still an AWESOME mortgage rate you can brag about. There are a few exceptions: Some of your investor mortgages for buying rental property are in the 4’s on a 30 yr but that is still great for rental property. The first time homebuyer program with Tennessee Housing Development Agency is 4.2% on a fixed rate 30 yr but remember this first-time homebuyer agency throws in a grant of 4% of the loan amount to help with the down payment. Wow, free money!
Our topic today is “Renters Insurance AND Getting Ready For First-Time Homeownership” but if we can offer solutions to your homebuying, home refinancing or other financial or insurance challenges, let’s talk about it. Call us at 901 535-WREC. That number again is 901 535-9732.
Troy and Lynn McDonald of Erin McDonald Allstate Agency are sitting here around the coffee table. Lynn I know you talk a lot about the advantages renters insurance gives renters and their landlords. What some of the advantages of renters insurance you can share with us today?
Questions for Jo Garner to answer: How does the Tennessee Housing Development Agency work for first time homebuyers?
1. 4% grant for down payment assistance example of thda vs fha
What is a first time homebuyers , what are some exceptions to the borrower being a 1st timer? Target areas, military,
2. What other mortgage programs are there for first time homebuyers? Shelby co, city of memphis,
VA and Rural Housing loans give the buyer 100% financing with restrictions and you do not have to be a first time homebuyer
3. Where can buyers find funds to close if they do not qualify for a down payment assistance program?
Questions for Lynn and Troy
1. What are the benefits of renters insurance for renters?
2. What are the benefits of renters insurance for landlords?
3. What are some misconceptions about renters insurance?
Real Estate Tip of the Week: Lynn and Troy McDonald of Allstate Insurance-
Steps to take to make sure you are covered for a vacant property. After 60 days of moving out of your home and leaving it vacant of tenants, your home is deemed vacant by insurance companies. There is a different coverage you need for this situation.
Jo to announce Talk Shoppe @ the Better Business Bureau this Wednesday 9a to 10A. The BBB is at 3693 Tyndale Memphis, TN 38125 or for more info go to www.TalkShoppe.Biz. These events are free to anyone interested in real estate or business. Our topic this coming Wednesday is “Benefits of Outsourcing The Human Resource Function” with Cynthia Thompson with HR Professionals of Greater Memphis
On next week’s Real Estate Mortgage Shoppe next week right here on News Radio AM 600, we will be talking with Attorney Ron Cohen about all things concerning your real estate title, contracts and more.

Here are some concepts about renters insurance:

Renters Insurance protects your contents anywhere in the world. If you car gets broken into, it is your property insurance, not your auto insurance that will replace the items.

Renters Insurance is very reasonable in price and usually can be paid for monthly. For $10-$30 a month (depending on how much “stuff” you have you can have a good policy.

Many homeowner insurance companies give a discount if you have prior Renters Insurance. We give a 15-17% discount on a new homeowner policy if our client had renters insurance prior to the home purchase.

Renters Insurance includes liability coverage. If you cause a kitchen fire, your Renters Insurance liability coverage will pay for the damage. For this reason, Landlords should be very eager to have their tenants have renters insurance!

Renter Insurance provides loss of use. Lets say you’re in a multi unit building and theres a fire, not at your apartment but one in the same building. If smoke makes it unsafe for you to stay there, your Renters policy will actually provide housing for you until your home is safe to return to.

Lynn always mention in FIRST TIME HOME BUYING CLASS, if you lost everything you own today in a fire or tornado-and had to buy everything brand new-WOULD IT NOT DELAY THE HOME BUYING PROCESS?
Jo Garner, Mortgage Loan Officer Evolve Bank and Trust (901) 482 0354 www.MoneyShoppe.NET
Troy and Lynn McDonald, Erin McDonald Allstate Insurance Agency (901) 849 7101
For solutions to your real estate financing and insurance challenges, contact the hosts of the Real Estate Mortgage Shoppe radio show.