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Good morning Memphis! We back together again on the Real Estate Mortgage Shoppe program with me Jo Garner, Mortgages Officer with Evolve Bank and Trust. Our co-hosts today are Troy and Lynn McDonald of Erin McDonald Allstate Insurance Agency. Troy and Lynn, I always learn something new when you’re on the show—and have some fun too. You two have been top producers for Allstate and 5 states around. Tell us a little about yourselves and what you do
Our topic today is “Renters Insurance: Financial Protection From Fires, Storms, Wrecks & Other Injuries” but we will talk with you about ANYTHING real estate you want to discuss–your mortgage, your credit, your homeowner’s insurance… Grab your coffee and join us around the coffee table by calling 901 535-WREC . That number again is 901 535 9732.

There’s quite a bit of good news out there, Troy and Lynn. So let’s start with the Good Stuff… home sales are UP 17% from this time last year. When houses are selling that helps multiple sectors of the economy. How many jobs are created when someone buys a house, Troy?
In yet another sign of positive news, foreclosure activity fell to a five-year low in September.

AND many areas of Memphis have converted from a buyers’ market to a SELLER’s market. That means that we are seeing competition among people making offers to buy in some neighborhoods. This tends to drive the prices of homes UP. This is good for the housing market -but not good if you have been procrastinating about buying a house.

As for mortgage rates, After improving for the first time in a week yesterday, Mortgage rates moved slightly lower again on Friday.
o 30YR FIXED – 3.25% – 3.375%
o FHA/VA – 3.25% (varies more between lenders than conventional 30yr Fixed)
o 15 YEAR FIXED – 2.75%
o 5 YEAR ARMS – 2.625-3.25% depending on the lender
Couple of major factors keeping our mortgage rates down. The first one is that our Federal Reserve is continuing to purchase $40 billion dollars in mortgage-backed securities PER MONTH! This keeps the yields on these bonds low and therefore the mortgage rates you pay are less even though fees on these mortgages are creeping up. The other factor is the European debt crisis, keeping investment overseas perceived by global investors as more risky. Beware when confidence begins to come back in the European market–our rates could go up VERY quickly.
A missed opportunity can be worse than defeat. If the home purchase or refinance deal works for you today, do it today. Don’t wait around and miss your opportunity. My assistant Susan Belew and I are ready to talk with you about YOUR mortgage. Let us crunch some numbers for you to lower your mortgage rate, shorten your mortgage term or help you free up some cash out. The best number to reach me directly OFF the air is 901 482 0354. That number again to reach Susan and me directly is 901 482 0354.
Half of the calls Susan and I are getting lately have been for customers ready to buy a house. We have some great down payment assistance programs and other combinations to help our customers tailor the terms to what they want. The OTHER half of our callers are calling to refinance their primary residence, vacation home or investment property.
The most common refinance call is for the government Home Affordable Refinance Program or HARP program that does not require an appraisal value. If you or someone you know has a rate 4.75% or higher–even if they are currently underwater -owing more on their house than the current value—call me an let’s put some serious money back in your pocket. My direct number to talk OFF the air is 901 482 0354.
Another great program for refinancing that does not require an appraisal is the FHA streamline loan. This loan is good for anyone who currently is paying on an FHA loan but wants to refinance to ANOTHER FHA loan with a much lower rate. Here is a bonus: If your current FHA loan was endorsed by FHA prior to May 31, 2009, then you can take advantage of a much lower FHA mortgage insurance than the current day rates.
Whatever you want to talk about -if it is regarding your real estate property, your mortgage, your credit, your insurance—we want to hear from you today. Give us a call at 901 535-WREC. That number again is 901 535-9732.
We are touching on the topic today, “Renters Insurance: Financial Protection From Fires, Storms, Wrecks & Other Injuries.” We’ve been talking about lowering your mortgage interest rate, but Troy and Lynn, what are some ways we can lower our financial risk against Fires, Storms and Other InjuriesQuestions to be answered by Troy and Lynn McDonald:
1. Can someone be OVER insured on their car?

2 What other risks do you encounter when you let someone else drive your car?

3 We all know that renters insurance covers replacement of the tenant’s belongings in case of fire damage. What else does renter’s insurance cover that is important to know?
4 How much does renters insurance costs?
Questions to be answered by Jo Garner:
1.We were talking about the special HARP program . What are some of the qualifications to get one of these loans. And will they work for investment properties too?

2. You were talking earlier about the rates going down but the fees going up. What are the g-fees you mentioned earlier and how do they affect people getting a conventional loan under Fannie Mae or Freddie Mac?

3. What type financing do you have available for real estate investors? Fannie Mae will allow up to 10 financed properties with restrictions:
Investors owning 1 to 4 financing properties can (a) cash out up to 75% Loan-to-Value & Combined Loan-to-Value (b) Purchase or Rate Term Refinance up to 80% Loan-to-Value & 85% Combined-Loan-to-Value.

Investors owning 5 to 10 financed properties must (a) have a minimum credit score of 720 (b) Limited cash out up to 70% Loan-to Value (c) Purchase & Rate Term maximum 75% Loan-to-Value & Combined-Loan -to-Value (d) 2-unit properties up to 4-unit properties max purchase & rate-term refinance 70% Loan -to-Value & Combined Loan-to-Value. (e) no mortgage late payments showing over 30 days in the last 12 months
3. Where can you get money for down payments?

Real Estate Tip Of The Week: Ben Cooper with TVA will be at Talk Shoppe Wednesday to show homeowners how to have an energy efficient Make Over on their house saving them money on their utility bill and also getting paid incentive money to do it.
Jo Garner to make two announcements:Talk Shoppe offers free education and networking to anyone interested in real estate or business. The Talk Shoppe events are held every Wednesday 9a to 10a at the Better Business Bureau at 3693 Tyndale Memphis, TN. This week Ben Cooper from Tennessee Valley Authority will be speaking on testing your home for an energy efficient make over and get tax money to do it. For more information about Talk Shoppe, go to www.TalkShoppe.BIZ
Next week on the Real Estate Mortgage Shoppe program we will have Tom King of King and Vaughan Consulting, a certified Shelby County Property Tax Appeal Expert , talking about what’s coming up in the future for our real estate and our real estate taxes.
Notes from Lynn:

I thought a general title could be have the RIGHT insurance before you buy your home.

If you have an uninsured auto accident it could mean a lien against your credit history and there will be no home until the debt is paid off. The same is true of having a loss in a rental situation. If you rent and you have a kitchen fire, someone is going to expect you to pay for the damage-either the landlord or his insurance company.

Plus having Renters Insurance in place when you purchase a home can get you a significant DISCOUNT with a lot of companies.

As you know Mike Butler is the speaker at MIG tomorrow night and I loved what he had to say about having Renters Insurance, so we can also talk about why Renters Insurance benefits the Landlord or Investor.

Burning down the House is great

Also, Baby you can drive my car

Jo Garner, Mortgage Officer Evolve Bank and Trust (901) 482 0354 www.MoneyShoppe.NET.

Troy and Lynn McDonald, Erin McDonald Allstate Insurance Agency (901) 372 3500 and (901) 849 7101

Duane McCrory, Top Quality Service (Heating and Air ) 901 644 3303

For information on the best way to refinance in Memphis or other areas, Jo Garner can crunch the numbers for you to find the best mortgage solution and Troy and Lynn will help you evaluate your home and auto insurance to make sure you are getting the most insurance coverage of the least costs.