TOP FIVE WAYS TO ADD VALUE TO YOUR HOME & TIPS FOR PAYING YOUR MORTGAGE OFF EARLY
Thank you for connecting with me on the Real Estate Mortgage Shoppe blog. If you do not find the information you need on this blog posts, please feel free to drop me a line at jo@192.232.195.219 or call me at (901) 482-0354. It is important to me that you get the help you are seeking on your mortgage questions.
Today we talked about the TOP FIVE WAYS TO ADD VALUE TO YOUR HOME & TIPS FOR PAYING YOUR MORTGAGE OFF EARLY.
1. Location where people typically look for a safe neighborhood. The other big priority under location is the quality of the schools for families with children. For the younger millennial crowd, easy and fast access to wi-fi and good cell phone services. (This item did not get covered on the show)
2. Buy the house and wait for it to go up in value. Pay down the mortgage. Pay off the mortgage early
3. Spruce up and de-clutter. Lighten the rooms. Do some simple touches with landscaping to improve the curb-appeal.
4. Trade in your old HVAC system and get a newer, more energy efficient system.
5. Do minor repairs upfront, like a leaky faucet, windows or plumbing that doesn’t work etc.
Market News
Look Back Memphis Trivia Contest
Questions Answered by Tom King
Questions Answered by Jo Garner
Questions Answered by Consultants
Real Estate Tip Of The Week
Announcements
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Good morning, Memphis. Good morning across the 50 states on internet radio. Thank you for joining us on Real Estate Mortgage Shoppe. I’m your host, Jo Garner, Mortgage Loan Officer and you can connect with me at www.JoGarner.com . If you are on twitter, send us your comments or questions while we are live on the air at #JoGarner. On Real Estate Mortgage Shoppe, we offer solutions to your real estate and financing scenarios. So.. if YOU have a real estate or financing question, comment or conundrum, drag up a chair and join us by calling <(901) 535-9732 or if you are outside the Memphis area, (800) 474-9732. >
Tom King, a long-time appraiser with Bill King Company is sitting around the coffee table with us today. Tom, you’ve been out of the studio for a few weeks. What have you been up to?
(Jo) Today our general topic is “Top Five Ways To Add Value To Your Home & Tips For Paying Your Mortgage Off Early.” One of the things that add PERSONAL value to MY home are having my family and friends sitting around the table and presents under the Christmas tree—Christmas music playing on the radio and spiced tea on the stove. That is what I LOVE about this season! Following Christmas, Chanuka and other celebrations comes the New Year’s resolutions that make us better people. If you’re thinking about selling your home soon or maybe you want to stay in your home but without having to pay on a mortgage—stay tuned because we’re going to cover some top ways you can achieve this goal.
For now, though, let’s look back on the week November 30th, 2015 to December 4th, 2015. Mortgage rates made the biggest single-day jump that we’ve seen in the last 2 years Thursday—the day before the almighty jobs report and during the month that the Federal Reserve says they are going to raise THEIR rate. But yesterday bond yields fell back down correcting the overreaction from the day before. The fixed rate conventional 30 yr rate closed yesterday at around 4% with no points depending on various factors. The 15 year fixed hit around the low to mid 3’s depending on certain scenarios. You can call me personally and we can discuss the special jumbo product at around 3.875% and the 100% physician loan at around 4% . The government FHA, the 100% Veteran Loan and the 100% Rural Housing loan rates are remaining low too. If you want to explore some mortgage terms to purchase a home or restructure and refinance a mortgage, call me personally. If you are not working with me personally, you are not working with me at all. I WANT to work with you, so call me and let’s how good we can get the terms on YOUR financing.
(Jo) Tom I know we are going to get into some more ways to add value to your home. Here’s the lazy man’s way to add value to the house—Lazy man rule #1 –keep the house over time. With an exception of a few times when real estate values have fallen, on an average, real estate values across the nation tend to go up 1 to 2% a year. Over time, based on the past few decades in history, you’re going to see the value on your home go UP. So just sit on it and wait. The other way that makes time your friend for adding value to your home is when you make payments on your amortized mortgage. You are paying the balance down each time you make a payment, creating a larger equity position for yourself. If you have a 30 year fixed rate mortgage and at the very beginning you pay the equivalent of one extra principal and interest payment each year, you can automatically eliminate about 7 to 8 years off your mortgage term. That is 84 to 96 payments that you won’t have to make at the end of the loan. On a $200,000 dollar 30 year loan at 4.25% interest, the principal and interest payment is $983.88/month. If you eliminate 8 years, you just saved yourself $94,000 dollars at the end of the loan. That’s real money! What could you do with the money you saved? If you invested it, you might see that money earn you compounded returns on top of returns. If you are trying to decide whether to buy a home or rent, remember that you’re going to make a mortgage payment —your own or your landlord’s.
(Jo) Other ways to get the mortgage paid off early with the least amount of interest expense is to restructure it. The best way to restructure your mortgage depends on your specific situation. Call me and let’s do the numbers for you. If you can lower your interest rate AND shorten the term on your mortgage, you can see the biggest savings. Think of it like a contest to see who can burn the candle down the fastest. You’ll be ahead if you can light BOTH ends of the candle at the same time, because it will melt away faster. Just like your mortgage—if you can lower the interest rate AND shorten the term, you will see your mortgage balance drop faster and your percentage of personal equity ownership in your house go up –much faster.
(Jo) Since we’re talking about the TOP FIVE WAYS TO ADD VALUE TO YOUR HOME & TIPS FOR PAYING YOUR MORTGAGE OFF EARLY, in your opinion, what are some of the best ways you see for someone to add value to their home?
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.
Garner # 64 11/27/15
St. Jude Children’s Research Hospital
Question: I was the first desegregated hospital in Memphis. Who am I?
Hint: I am located in one the oldest neighborhoods of Memphis.
Hint: My construction and opening was delayed due to the construction of I-40.
Hint: The goal of my facility is to close!?
Final Hint: I am perceived as “The True Miracle of Memphis!”
Answer: 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, December 17.
Go to jimmyogle.com for the 2016 Spring season schedule and locations.
QUESTIONS ANSWERED BY TOM KING:
1. What are the two most important rooms in the house that add value?
2. Under what circumstances does an added bedroom contribute value on an appraisal?
5 Ways to Increase The Value of Your Home
1. (Jo)Letting Time Pass, Allowing the home to increase over time. Paying down the mortgage lowers the lien amount from the mortgage and frees up more and more equity on the house.
2. Jeff and Heidi Ross of ShowHomes Memphis (901) will call in to give stats) Cleaning out Clutter and lighten up the inside of the home. (Jo may add details about -)Replace the front door. Red door= fun and random, glass door= nothing to hide gray door= dignity and knowledge black door= strength and strong-willed.
3. Do repairs–(Jeff and Heidi may comment on this ) Paint the walls in the high traffic area. Fix minor repairs like fixing a leaky faucet, getting stains out of carpet, recaulk bathroom. (Tom can give examples of the following-) If the surrounding neighborhood homes has granite or marble countertops, tile or hardwood floors—install these in the home for sale. Landscaping for a good first impression. (John and Jennifer Lawhon 901 754-7474 gave examples of things to do with front yard landscaping on a budget) Landscape to create good first impression curb appeal. Trees and gardens increase curb appeal and fresh mulch.
4. Location , Location, Location is the most important factor in adding value to a home. Families with children put a high premium value on a house in a good school district. Safety is an important factor. The millennial generation want to be connected with their circles, their community and resources, so having good cell phone service in the home with fast internet wi-fi is a top priority. Older homebuyers put a premium on being close to family and support.
5. Energy-saving, money-saving appliances, especially the HVAC system. (Duane McCrory with Top Quality Service Heating and Air gave information on how much the higher efficiency hvac equipment can save you on the utility bill. He can also take your old working equipment in trade for the new installation. (901) 644-3303.
QUESTIONS ANSWERED BY JO GARNER:
A.Talk more about some ways the passing of time can add value to a home.
(Jo) In the early part of this broadcast we talked about the Lazy Man’s method of adding value to his house is just to keep the house over a long period of time and let it appreciate in value all by itself. We talked about some examples of how just paying down the balance with each monthly payment or prepayment to principal can add more equity value for the homeowner. We even talked about some tips for how to pay off your mortgage early with the least amount of expense in the least amount of time. You don’t have to pay a fee to a third party to do this. I can show you how to do it easy-peasy automatically on your own.
B. If you are refinancing and restructuring your mortgage to lower the interest rate or to lower the interest expense AND shorten the term, there may be some special programs available to you that do not even require an appraisal. The is the special HARP program, there are also streamline refinance programs on certain programs that would not require an appraisal nor would you have to show the amount of your income. Call me personally and let’s see if any of these scenarios for refinancing your loan would work for you. But call me PERSONALLY at 901 482-0354. I want to work with you, but you have to call me PERSONALLY 901 482-0354 or connect at www.JoGarner.com
C.. On an earlier show, I talked about a client who had a unique personal situation—which a lot of people have unique situations that we need to consider when coming up with a plan that will save them the most money but will work around their unique circumstances. This lady called me who was struggling with having enough cash to pay her bills per month due to a temporary family crisis. She asked me, “My 2nd mortgage equity line payment just went up quite a bit and now it will be tough to be able to afford to pay my bills each month. What can I do about my home equity line loan?”
Normally, she would not even consider refinancing her fixed rate FIRST mortgage because she only owed around $40,000 on her first mortgage with less than 5 years left to pay it off. Her 2nd mortgage was a variable rate home equity line with a balance of about $50K. Her bank had just told her that her payment on that loan was converting to a full principal and interest payment increasing the minimum payment by an extra $200 per month. She told me she knew that later the monthly payments on her mortgage would be no problem, but the increase on the 2nd note for the moment was threatening her ability to pay for basic family needs at least until her family could get through their current crisis. The thought that the 2nd loan was also a variable rate loan with no safety caps on rate increases made her feel financially vunerable too.
The scenario that worked for her was to refinance the $40K fixed rate mortgage back to 30 year which reduced her payment saving her about $700/mo. She planned to use about $500/mo of the $700/mo savings to pay down the variable rate 2nd mortgage. Here’s what she accomplished—Most importantly she was able to solve the cash flow crunch per month by reducing her first mortgage payment. But also, she used some of the savings to pay down quicker the balance on the 2nd lien loan lowering her exposure on the variable rate loan faster. The restructure for this client is actually putting her in a BETTER position than her former arrangement. She can pay off first the loan with the riskier variable rate and THEN turn around and pay off early her safer fixed rate first mortgage—all of this AND be able to weather the temporary family crisis. Everyone’s story is different. Solutions vary from person to person. So let’s you and I talk about YOUR situation and how we can save you some money and help you get rid of your mortgage faster. I would like to talk with you PERSONALLY. (901) 482-0354 (901) 482-0354.
REAL ESTATE TIP OF THE WEEK: Tom King shares a practical, money-saving, time-saving real estate related tip of the week. (about 1.5 minutes)
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This Wednesday December 9th , 2015. Tim and Katie Gilliland of BackupRx will be presenting. “Data Back Up & Recovery—How To Cost-Effectively Save Your Business & Bottom Line.” Talk Shoppe meets at the University of Phoenix 65 Germantown Court 1st floor Cordova, TN 38018.
If YOU would like to play a positive role in supporting children learning to swim at the YMCA, contact me at (901) 482-0354 or www.JOGarner.com . You can help Talk Shoppe bring in gift cards to auction to raise money for this cause. You can come to Talk Shoppe Wednesday December 16th and be part of something very positive and your business can be promoted all at the same time. To find out more, contact me at 901 482-0354 or connect through www.JoGarner.com For information about Talk Shoppe, go to www.TalkShoppe.com
• To hear today’s podcast of Real Estate Mortgage Shoppe and others, go to www.JoGarner.com
“MAKE YOUR PLAN, WORK YOUR PLAN. IF THE DEAL WORKS FOR YOU TODAY, DO IT TODAY.”
Quote Corner: Albert Einstein when asked what he considered to be the most powerful force in the universe answered: Compound interest! What you have become is the price you paid to get what you used to want.
Mignon McLaughlin
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Transitional Music: “The Money Song” by the Muppets; “Memphis” by Johnny Rivers
Professional Consultations:
Jeff and Heidi Ross 901 831-1177
Duane McCrory 901 644-3303
The Lawhons 901 754 7474
Gwen Christensen, www.BuildersFloorsAndInteriors.com
ABOUT JEFF AND HEIDI ROSS, SHOWHOMES MEMPHIS
Jeff and Heidi Ross are the franchise owners of Showhomes Memphis. They stumbled into the home staging business when they sold their personal home in 2003. The idea of business ownership as well as working together intrigued them. Jeff’s entrepreneurial desires combined with his past experience in operations, sales, and marketing complimented Heidi’s passion for home interior decorating, and that combination made the home staging business a great fit.
Jeff and Heidi met while attending college at Oral Roberts University. They have been married for over twenty years and they are the proud parents of two teenage children. Their daughter, Bailee, is a junior at Briarcrest Christian School and their son, Parker, is a freshman at First Assembly Christian School. The Ross’s are active members of Life Church Memphis and serve as Service Pastors at the Collierville campus.
As a teenager, Heidi constantly re-arranged her mother’s home and furnishings, painted anything, re-finished furniture, re-designed clothes, and frequently re-invented her physical surroundings. Meanwhile, Jeff grew up with a profound desire to manage or become a business owner and has always enjoyed creating systems and maximizing the talents of others. Together, Jeff and Heidi enjoy helping others by creating value for sellers.
Over the past twelve years, Jeff and Heidi have won over twenty awards, including the Showhomes “Franchise of the Year” award in 2007. To date, Heidi and her team have staged over $143 million dollars in real estate. Jeff and Heidi have personally lived in and cared for seventeen homes. Heidi is a Certified Professional Real Estate Stager with “The Decorating & Staging Academy”. She is also one of only two people in Memphis and one of only five people in the state of Tennessee to hold the “Real Estate Staging Association-PRO” designation. Jeff is also a licensed Realtor with Kaizen Realty.
Jeff and Heidi are certified members with the Home Staging & Redesign Association and they are both Certified Update and Color Specialists with Showhomes. Their company is a preferred vendor with Crye-Leike Home Services, a BOLD sponsor with Keller Williams, and a proud supporter of the Memphis Dream Center.
To contact Jeff or Heidi, you may visit their website at ShowhomesMemphis.com or you may also go to their Facebook page, Showhomes Memphis Home Staging.
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John and Jennifer Lawhon of Lawhon Landscaping (901) 754 7474
GWEN CHRISTENSEN, OWNER OF BUILDERS FLOORS AND INTERIORS
www.buildersfloorsandinteriors.com
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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.