Today we are sharing stories and offering solutions on how to make home and life style changes smoother. I will be sharing some stories of people who have used a reverse mortgage and other mortgage programs as a timely solution to their situation. Mary Lou Nowak of Mid-South Home Helpers will be sharing some stories and the Seven Conversation Starters to help YOU help YOUR loved one when it is time to make changes. A special guest, Leah Anne Morse from All Things New will be joining us later in the show.
Let’s stay connected. Let us know what specific interests you have on the real estate and financing topics. Subscribe to get our weekly podcasts and show notes at www.JoGarner.com or just call me at (901) 482-0354.
To Your Success,
Jo Garner, Licensed Mortgage Loan Officer NMLS# 757308
____________________________________________________________
REAL ESTATE MORTGAGE SHOPPE GREETING
Good morning, Memphis! Welcome to our internet listeners and podcast listeners across the 50 states! You’re on Real Estate Mortgage Shoppe. I’m your host, Jo Garner, Mortgage Loan Officer. Subscribe at www.JoGarner.com and you will get our weekly podcasts with show notes directly into your inbox. Our general topic is Smooth Transitions For You And Your Aging Loved Ones-Mortgage and In-Home Care Solutions. Call us while we are live at (901) 535-9732 Today is June 9th, 2018.
HERE’S WHAT IT’S ABOUT
Today we are sharing stories and offering solutions on how to make home and life style changes smoother. I will be sharing some stories of people who have used a reverse mortgage and other mortgage programs as a timely solution to their situation. Mary Lou Nowak of Mid-South Home Helpers will be sharing some stories and the Seven Conversation Starters to help YOU help YOUR loved one when it is time to make changes. A special guest, Leah Anne Morse from All Things New will be joining us later in the show.
INTRODUCING MARY LOU NOWAK-MID-SOUTH HOME HELPERS
Having coffee with us today is Mary Lou Nowak, managing partner of Mid-South Home Helpers and serves as Vice President of Marketing and 2018 Professional Conference Chairperson of Professional Network Of Aging. Mary Lou, you truly know what to do when it comes to non-medical assistance to help our loved ones enjoy staying comfortably and safely in their own homes. Tell our audience a little bit about you and what Mid-South Home Helpers does for your clients. (Mary Lou has about 1 minute to introduce herself and talk about what Mid-South Home Helpers does for their clients)
TIMES OF TRANSITION—MOM’S TINY HOUSE STORY
(Jo) The heart and soul of being a mortgage loan officer over 25 years has been the honor and privilege of being on the journey with my customers at meaningful time of transition. Sometimes for them it is purchasing their first home. Sometimes it is making the monumental decision to down size or to get started buying income-producing real estate. Sometimes it is getting to help them restructure their finances by refinancing their home. Thank you, to each one of you that have allowed me to be on part of YOUR journey.
The last time you were in the studio, Mary Lou, we were talking about Tiny Houses. After a diagnosis that prevented my Mother from being able to walk or move around much, my sister found a used Tiny House for sale. We bought it and fixed it up, added a deck and wheel chair ramp to the front and back of the house and really fixed it up to look cute. My mother LOVES her Tiny House. It is hers and she can eat when she wants, sleep when she wants, watch what she wants on TV and have family and friends come visit. She has nurses and other care givers who come in and care for her and, of course, my sister and I love being there to dote on her too.
MARY LOU’S SEVEN CONVERSATION STARTERS
Mary Lou, you were a great source of information and support, even before we had to make these decisions. You recently wrote an article for the Professional Network On Aging called “Seven Conversation Starters.” Can you take a few minutes and share with our listeners how to comfortably discover ways to help your loved one by engaging in natural conversation?
Seven Conversation Starters
Summer vacations can bring unexpected rewards.
There are certain topics we tend to put off discussing because we worry the conversation will be uncomfortable – at best – or even confrontational. Why ruin a pleasant visit with a talk nobody particularly wants to have? One obvious example is talking to a friend or family member about whether they’ll need help. No matter who brings it up, we tend to approach this conversation with the kind of anxiety usually reserved for surgical procedures.
You may question what do I say and how to approach the subject without putting me or my dear one on edge? Here are some conversation starters to help create open and honest dialog without asking just a series of yes-or-no choices.
A. Is there anything around the house you need help with?
B. Is the oven, range, refrigerator, dishwasher, washer, dryer etc., working properly? When was the last time you used them? What did you cook or how often do you do laundry?
C. How is the car running? How often are you getting out? Where do you go?
D. How are your friends? Do you see much of them? What’s new with them? How do you keep in touch/where do you see them?
E. What would make things easier for you?
F. If you could change anything about the house, what would it be?
G. Have you thought about what you’ll do when that’s not as easy anymore?
Once you’ve begun talking, you can let the discussion unfold naturally and more comfortably. Leaving vacation for home with peace of mind is the reward.
You’re listening to Real Estate Mortgage Shoppe. I’m your host, Jo Garner, Licensed Mortgage Loan Officer. Connect with me at www.JoGarner.com and click on the Evolve Bank ad at the top of the web page and you can apply online. or just call me the old -fashioned way at (901) 482-0354. When we come back, you will be hearing more from Mary Lou Nowak and Leah Morse of All Things New will be joining us. Stay tuned—I will be sharing some great mortgage solutions for your transition too.
____________________________________________________________
TOPICS COVERED BY MARY LOU NOWAK OF MID-SOUTH HOME HELPERS:
1. What are the 7 conversation starters families can use to help aging loved ones?
Seven Conversation Starters
Summer vacations can bring unexpected rewards.
There are certain topics we tend to put off discussing because we worry the conversation will be uncomfortable – at best – or even confrontational. Why ruin a pleasant visit with a talk nobody particularly wants to have? One obvious example is talking to a friend or family member about whether they’ll need help. No matter who brings it up, we tend to approach this conversation with the kind of anxiety usually reserved for surgical procedures.
You may question what do I say and how to approach the subject without putting me or my dear one on edge? Here are some conversation starters to help create open and honest dialog without asking just a series of yes-or-no choices.
H. Is there anything around the house you need help with?
I. Is the oven, range, refrigerator, dishwasher, washer, dryer etc., working properly? When was the last time you used them? What did you cook or how often do you do laundry?
J. How is the car running? How often are you getting out? Where do you go?
K. How are your friends? Do you see much of them? What’s new with them? How do you keep in touch/where do you see them?
L. What would make things easier for you?
M. If you could change anything about the house, what would it be?
N. Have you thought about what you’ll do when that’s not as easy anymore?
Once you’ve begun talking, you can let the discussion unfold naturally and more comfortably. Leaving vacation for home with peace of mind is the reward.
2. What kind of services do you offer your clients?
3. Share some stories of how Mid-South Home Helpers have helped their clients?
4. What are some other ways you have helped your customers outside the normal services you offer at your agency?
____________________________________________________________
TOPICS COVERED BY JO GARNER, MORTGAGE EXPERT
1. Talk about the mortgage program everyone thinks about when they think of our senior citizen loved ones—the Reverse Mortgage.
The Reverse Mortgage, surprisingly does not really work well for most people. However, if you are over 62 years old and your have paid off the mortgage on your home, or you have almost paid off your home and you have no other assets, the Reverse Mortgage may be for you. But, before applying for a Reverse Mortgage Loan, you are required to complete a session with a HUD approved Reverse Mortgage counselor. You can find them at (800) 569-4287. https://www.hud.gov/program_offices/housing/sfh/hecm/hecmabou
Borrower Requirements for the FHA HECM Reverse Mortgage
“You must:
• Be 62 years of age or older
• Own the property outright or paid-down a considerable amount
• Occupy the property as your principal residence
• Not be delinquent on any federal debt
• Have financial resources to continue to make timely payment of ongoing property charges such as property taxes, insurance and Homeowner Association fees, etc.
• Participate in a consumer information session given by a HUD- approved HECM counselor
Property Requirements
The following eligible property types must meet all FHA property standards and flood requirements:
• Single family home or 2-4 unit home with one unit occupied by the borrower
• HUD-approved condominium project
• Manufactured home that meets FHA requirements
Financial Requirements
• Income, assets, monthly living expenses, and credit history will be verified.
• Timely payment of real estate taxes, hazard and flood insurance premiums will be verified
For adjustable interest rate mortgages, you can select one of the following payment plans:
• Tenure – equal monthly payments as long as at least one borrower lives and continues to occupy the property as a principal residence.
• Term – equal monthly payments for a fixed period of months selected.
• Line of Credit – unscheduled payments or in installments, at times and in an amount of your choosing until the line of credit is exhausted.
• Modified Tenure – combination of line of credit and scheduled monthly payments for as long as you remain in the home.
• Modified Term – combination of line of credit plus monthly payments for a fixed period of months selected by the borrower.
For fixed interest rate mortgages, you will receive the Single Disbursement Lump Sum payment plan.
Mortgage Amount Based On
The amount you may borrow will depend on:
• Age of the youngest borrower or eligible non-borrowing spouse
• Current interest rate; and
• Lesser of:
o appraised value;
o the HECM FHA mortgage limit of $679,650; or
o the sales price (only applicable to HECM for Purchase)
If there is more than one borrower and no eligible non-borrowing spouse, the age of the youngest borrower is used to determine the amount you can borrow.
HECM Costs
You can pay for most of the costs of a HECM by financing them and having them paid from the proceeds of the loan. Financing the costs means that you do not have to pay for them out of your pocket. On the other hand, financing the costs reduces the net loan amount available to you.
The HECM loan includes several fees and charges, which includes: 1) mortgage insurance premiums (initial and annual) 2) third party charges 3) origination fee 4) interest and 5) servicing fees. The lender will discuss which fees and charges are mandatory.
You will be charged an initial mortgage insurance premium (MIP) at closing. The initial MIP will be 2%. Over the life of the loan, you will be charged an annual MIP that equals 0.5% of the outstanding mortgage balance.
1. Mortgage Insurance Premium
You will incur a cost for FHA mortgage insurance. The mortgage insurance guarantees that you will receive expected loan advances. You can finance the mortgage insurance premium (MIP) as part of your loan.
2. Third Party Charges
Closing costs from third parties can include an appraisal, title search and insurance, surveys, inspections, recording fees, mortgage taxes, credit checks and other fees.
3. Origination Fee
You will pay an origination fee to compensate the lender for processing your HECM loan. A lender can charge the greater of $2,500 or 2% of the first $200,000 of your home’s value plus 1% of the amount over $200,000. HECM origination fees are capped at $6,000.
4. Servicing Fee
Lenders or their agents provide servicing throughout the life of the HECM. Servicing includes sending you account statements, disbursing loan proceeds and making certain that you keep up with loan requirements such as paying real estate taxes and hazard insurance premium. Lenders may charge a monthly servicing fee of no more than $30 if the loan has an annually adjusting interest rate or has a fixed interest rate. The lender may charge a monthly servicing fee of no more than $35 if the interest rate adjusts monthly. At loan closing, the lender sets aside the servicing fee and deducts the fee from your available funds. Each month the monthly servicing fee is added to your loan balance. Lenders may also choose to include the servicing fee in the mortgage interest rate.” From www.HUD.GOV
2. What if your older family member cannot get a Reverse Mortgage?
I have had many clients over 62 years old who found that the Reverse Mortgage would NOT work for them.
Not long ago, Leo and Luciana Lopez (not their real name) contacted me because they wanted to take care of Senora Lopez’s mother, who needed more care and attention. Luciana Lopez’ mother had her house paid off but it was small and too far away from her family. Leo and Luciana’s house was too small too.
The challenge was that Leo and Luciana’s income-to-debt ratios would not allow them to qualify for a home big enough for their family AND Luciana’s mother’s needs too. Luciana’s mother needed her own living space but could no longer live alone.
The solution for the Lopez family came when Leo and Luciana and Luciana’s mother found a house with a separate downstairs living area that was big enough for Leo and Luciana and also had the separate living area all under one roof. Leo and Luciana qualified for the much larger home because Luciana’s mother became a co-borrower on the mortgage and added her income to theirs to qualify.
Luciana’s mother also agreed to sell her home and use a good portion of the profit as a large down payment on the new family home, so that one day when her income was no longer there, the mortgage payment would be low enough for Leo and Luciana to easily manage.
If you or someone you may be thinking of doing something like the Lopez’ did, please refer them to me. There are other mortgage details available that we don’t have time to go into on the air, but may be just the ticket for a family considering this type of transition. Connect with me at www.JoGarner.com or call me at (901) 482-0354.
3. What happens if you need to buy your new home before you can sell your old home?
In this red-hot market the most common problem is selling your home before you have gotten someone to accept your offer on your new home. But, let me share the story of Mr. DeVries (not his real name). Mr. DeVries needed to downsize and live close to his daughter and her family. Due to his health struggles there were a few major repairs that needed to be done to his old home before he could sell it.
Before Mr. DeVries had time to repair his old home, a house really close to his daughter’s family house came up for sale. It was just so perfect, Mr. DeVries did not want it to get away. He made a generous offer to buy it and the seller accepted. But, the seller accepted Mr. DeVries offer only on the condition that he could close in 30 days. Mr. DeVries needed the profit from the sale of his old home to have enough to pay down so that his mortgage payment would be manageable on the new home.
The solution for Mr. DeVries came in the form of a bridge loan. Since he had not listed his old home on the market to sell, his bank gave him a home equity line of credit secured on the old home. The credit line was enough to get the major repairs finished on the home AND have enough to use for a down payment on the new home so that the mortgage payment on the new home would be low enough to make it easy to pay. Mr. Devries was able to buy the home near his daughter’s family that had everything he wanted. He had time to do repairs on the home and sell it a few months later.
If you or someone you know may in a similar situation like Mr. DeVries, let’s talk! There are a few other variations to this type of financing that might work better for other people. Check with your tax professional for ways to avoid paying capital gains taxes when you sell your primary residence. There are also ways to defer paying taxes on the sale of other types of real estate property. To talk about YOUR mortgage solution, connect with me at www.JoGarner.com or call me or text me at (901) 482-0354. But you have to talk with me personally so I can work with you. You can connect with me at www.JoGarner.com or call me directly at (901) 482-0354. MAKE YOUR PLAN. LET’S WORK YOUR PLAN. IF THE DEAL WORKS FOR YOU TODAY, DO IT TODAY!
____________________________________________________________
REAL ESTATE TIP OF THE WEEK
(MARY LOU NOWAK offers another real estate top about 1 minute for a real estate related money-saving or time-saving tip):
____________________________________________________________
ANNOUNCEMENTS:
Talk Shoppe offers free networking & education to anyone interested in real estate or in business. Talk Shoppe meets every Wednesday 9A-10A CT at Pinot’s Palette 8225 Dexter Rd Cordova, TN. This Wednesday June 13th 2018 Talk Shoppe presents: “How To Get The Most Out Of Networking Opportunities.” Presented by Jana Cardona, Mid-South Regional Director, Greater Memphis Area. www.bnimidsouth.com
Talk Shoppe events are free thanks to supporters like Taylor Eason, videographer and social media marketing guy. www.CreatedFlawless.com
4. SUBSCRIBE TO GET YOUR OWN WEEKLY REAL ESTATE MORTGAGE SHOPPE PODCASTS WITH SHOW NOTES AT WWW.JOGARNER.COM
5. Real Estate Mortgage Shoppe reminds you that MAKE YOUR PLAN. LET’S WORK YOUR PLAN. IF THE DEAL WORKS FOR YOU TODAY, DO IT TODAY.
SPECIAL NOTE: REAL ESTATE MORTGAGE SHOPPE RECOMMENDS THAT YOU CONSULT WITH A FINANCIAL, LEGAL OR OTHER CERTIFIED, LICENSED PROFESSIONAL BEFORE ACTING OR INVESTING ON ANYTHING YOU HEAR OR SEE FROM THE CONTENT ON THIS SHOW OR BLOG POSTS. THE INFORMATION WE SHARE ON REAL ESTATE MORTGAGE SHOPPE IS GENERAL IN NATURE MEANT FOR GENERAL EDUCATIONAL PURPOSES ONLY. ALL EXAMPLES GIVEN FOR ILLUSTRATION PURPOSES ON REAL ESTATE MORTGAGE SHOPPE USE FICTIONAL CHARACTERS AND DO NOT REFLECT REAL PEOPLE OR ACTUAL DETAILS IN ANY OF THE SITUATIONS.
____________________________________________________________
QUOTE CORNER:
From imfunny.net- “The three C’s of life- Choices, Chances and Changes. You must make a choice to take a chance or your life will never change.”
Unknown- “Age is a relative term. All my relatives keep reminding me how old I am.”
____________________________________________________________
REJOINDERS:
1. Jeri Jeffries, Tiger Paws Carpet Cleaning www.TigerPawsCarpet.com
2. Donnie Tuttle, Coeur d’Alene, Idaho #1 Sales Coach with Southwest Consulting (352) 525-0700 www.southwesternconsulting.com
3. Tom King, Bill King Appraisal Service (901) 487-6989
Transitional Music:
“The Older I Get” by Alan Jackson; “While He Still Knows Who I Am” by Kenny Chesney; “Tomorrow’s Gonna Be A Brighter Day” by Jim Croce; “Taking Care of Business” by Bachman Turner Overdrive for Talk Shoppe Business Tip for Real Estate Pros.
____________________________________________________________
ABOUT MARY LOU NOWAK OF MID-SOUTH HOME HELPERS
www.homehelpershomecare.com (901) 414-9696
Mary Lou Nowak, managing partner of Mid-South Home Helpers and serves as Vice President of Marketing and 2018 Professional Conference Chairperson of Professional Network Of Aging. She is a professional who began client care at a 500 bed community hospital in 2001 and since, while working with seniors and their families as owner of Home Helpers became an expert in expediting long term care insurance policies saving families thousands.
Home Helpers – (901) 414-9696
____________________________________________________________
ABOUT JO GARNER-LICENSED MORTGAGE LOAN OFFICER:
WHAT DO YOU WANT TO ACCOMPLISH WITH YOUR MORTGAGE?
www.JoGarner.com (901) 482 0354 jo@jogarner.com twitter @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 Jo is host of Real Estate Mortgage Shoppe and currently publishes on her blog www.JoGarner.com