Good morning Memphis! You are on the Real Estate Mortgage Shoppe program with me Jo Garner, mortgage officer with Evolve Bank & Trust. With us today we have Tom King, appraiser and certified Shelby County Property Tax Appeal Expert with King and Vaughan Consulting.
Tom, you have been busy appealing property taxes for so many of my customers and former customers. Tell our audience about yourself and what you can do for them
Our featured guest today is Marty Ferguson, CEO of Evolve Bank & Trust’s Small Business Administration division. Marty, it seems like every time I pick up the Commercial Appeal or the Memphis Business Journal, you are in there. You bring a lot to Evolve Bank. Tell us a little about yourself and what you do at the bank
Tom told me a couple of weeks ago that he wanted to take a peek into our economic future . So today’s topic is “Scanning Our Economic Future.” If you want to talk about this or ANYTHING regarding your real estate, your mortgage, your credit —we’re here to discuss it with you. Call us at
JO starts into news–
Tom, hand me my binoculars…. Yes thank you…. Get prepared…Here is what is coming with the mortgage market. If the Federal Reserve makes good on their promises our rates will stay relatively low for the next 2 or 3 years—maybe not as low as they are now—but reasonably low…. But there are other changes coming that may push up the cost of those rates
The two biggest mortgage backers,quasi government agencies, Fannie Mae and Freddie Mac, got in trouble in 2008 and are now in government conservatorship. The agency overseeing Fannie and Freddie have decided it would be better to phase out these two giants over time encouraging private sources to fund a bigger share of new mortgages. The method being used today to begin the phase-out is by adding extra fees to all Fannie and Freddie newly originated loans which will gradually increase over time. An extra $100 per $100 thousand dollar loan has already been added and will be added again in November, giving private lenders a better chance to compete. What does this mean to YOU the borrower? Restrictions are getting tighter and fees are getting higher.
We are going to hand the binoculars to Marty Ferguson a little later in the program so he can tell us what he sees in the future for our economy in general and especially for our small business owners.
If you are thinking about refinancing or buying a house today, do it today. My very capable assistant, Susan Belew and I want to talk with you. We want to crunch some numbers and see how much we can lower your rate, shorten your loan term or how much cash we can get out for you while the rates are low. To talk with us directly just call us OFF the air at (901) 482 0354. The number again to reach Susan and me directly is (901) 482 0354.
The GOOD news is that we have the Home Affordable Refinance Program we call HARP. This program allows homeowners to refinance WITHOUT an appraisal. Susan and I can check to see if you qualify for this program or the any of the other programs that do not require an appraisal. This can be the perfect solution for homeowners who owe more on their homes than the current house value–but it’s a great program even it you’re NOT underwater.
The FHA Streamline refinance program is a popular if you have an FHA loan and refinancing to another one. This one doesn’t require an appraisal either. Call me and let’s talk.
Don’t procrastinate though. Mortgage rates have been steadily climbing back up again as the housing market appears to improve. The 30-year fixed-rate mortgage rose 3 basis points to about 3.25% to 3.62 percent range. The 15-year fixed-rate mortgage rose 3 basis points to about 2.875% to 2.91 percent range. The average rate for 30-year jumbo mortgages (jumbo loans being loans over $417,000 dollars), fell 1 basis point to about 4% to 4.18 percent range. The 5/1 adjustable-rate mortgage rose 4 basis points to 2.7% to 2.72 percent range. The 5/1 ARM, the rate is fixed for five years and adjusted annually after the first 5 years.
Just to summarize what I see in our future over the next year are rates staying RELATIVELY low. The degree they stay low will depend largely on what happens in the European market. I see our loan restrictions continuing to tighten in small doses over the next year or two until private sources get their feet under them. THEN we will see some of these restrictions loosen up and a new variety of mortgage products emerge.
Tom King, you have 35 years experience appraising houses around the Memphis area. I am handing you the binoculars. What do YOU see on the horizon for our home values ?
Questions for Tom King to answer:
1. What is the process your customers need to go through to get their property taxes appealed? How do you structure your fee with no upfront charges?
2. What are some examples of savings you have gotten for a residential property owner and commercial property owners?
3. Where do you see our Memphis real estate values going over the next year? The next 3 years?
Questions for Marty Ferguson to answer:
1. What changes to you see on the horizon for our economy over the next year? Over the next 3 years?
2. A good number of our mortgage customers are small business owners. How will our economic future over the next 3 years affect the small business owner?
3. How does what you are doing with the Small Business Administration and Evolve Bank help generate jobs?
Questions for Jo Garner to answer:
1. You mentioned that some other mortgage products may be emerging in the future. What new products to you see in the future?
JO answers: One program that has been discussed recently in Washington is the HARP 3 program. This program has not been rolled out but it would allow homebuyers whose loans are NOT government backed to be able to refinance without an appraisal. Right now if your loan meets certain criteria and is backed by Fannie Mae, Freddie Mac, FHA or VA you can refinance WITHOUT an appraisal. But the HARP 3 version would help those who are NOT in a government backed loan. Call your Senator and let your representative know you WANT this program rolled out.
2. Do you still see there being down payment assistance and low down payment products in the future for homebuyers?
JO answers: Yes, especially for first-time homebuyers I see that there will be down payment assistance for low-to-moderate income homebuyers. FHA has been talking about raising their minimum down payment from 3.5% to 5%. Personally I think if that happens it would hurt the Memphis market because we have so many FHA homebuyers who need and want to lower down payment requirements. That goes back to what I said earlier. If the deal works for you today, do it today. Call your realtor today and go see what is out there for you as a primary residence, a vacation home or for an investment property.
Real Estate Tip of the Week :Before you write a check for an appraisal to buy a house or refinance one, let us check zillow.com and trulia.com for you to see what the average values are for your house and your neighborhood. If you know a local realtor who is familiar with your neighborhood, ask your realtor friend to give you a list of all the houses like your house that have actually SOLD in your neighborhood over the last 6 months. This will give you a better idea for what value to expect from an appraisal. < Tom added his advice here too>
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 Clint Cooper of Redeemers Group will be speaking on Foundation Settlement Issues: How They Affect Your Home .For more information about Talk Shoppe, go to www.TalkShoppe.BIZ
Next week on the Real Estate Mortgage Shoppe program we will have Attorney Ron Cohen and Jenett Rochester of Premium Title and we will be Treading on The Topic of Trespassing 9AM to 10AM CST right here on News Radio AM 600 WREC.
Songs:
9:15 AM In the Year 2525 Zager and Evans
9:35 AM Time Keeps On Slipping Into The Future Steve Miller Band
9:47 AM Back To The Future by Huey Lewis and the News
Jo Garner, Mortgage Officer Evolve Bank and Trust (901) 482 0354 jogarner@mindspring.com www.MoneyShoppe.NET.
Tom King, appraiser and Shelby County Tax Appeal Expert with King and Vaughan Consulting 901 487-6989
Marty Ferguson, CEO Small Business Administration for Evolve Bank & Trust (901) 260-1480 mferguson@getevolved.com
Kevin McDonell, Renaissance Association (property management) kamcdonell@gmail.com
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 Tom King and Deanna Vaughan of King and Vaughan Consulting will help you lower the taxes on your real estate properties.