How do you ride out a perfect storm? It depends which way the wind blows. Today we will give you a glimpse of what some homeowners are doing to take advantage of the very unique market that gives us both spiking high home values and the lowest rates we have ever seen. Certified Public Accountant, Keith Fulfer, will be talking about some financial best practices that can give you that peaceful feeling of stability.
What do YOU want to accomplish with YOUR mortgage? Let’s stay connected! Call me at (901) 482-0354 or email at Jo@JoGarner.com . Subscribe for weekly Real Estate Mortgage Shoppe podcasts with show notes at www.JoGarner.com
To Your Success,
Jo Garner, Mortgage Loan Officer NMLS# 757308 Sierra Pacific Mortgage 46 Timber Creek Dr Cordova, TN 38018
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. You can connect with me at www.JoGarner.com. Our general topic is WHEN THE WIND IS BLUSTERING FROM DIFFERENT DIRECTIONS—WAYS TO STABILIZE YOUR MORTGAGE, DEBT AND TAXES. Subscribe to get Real Estate Mortgage Shoppe podcasts with show notes at www.JoGarner.com Call us while we’re live today June 26th, 2021 at (901) 535-9732.
Back in the co-host chair we have Certified Public Accountant, Keith Fulfer, senior advisor with Pro-fi 20/20. Keith a lot of real estate folks know you here and you have given some great advice on how to operate our finances so we don’t have to pay as much to the Internal Revenue Service. Take a minute or so and introduce yourself and talk about what you do as a CPA for your clients. (Keith introduces himself and talks about what he does as a CPA for his clients)
LOOK FOR THE SMOOTHEST SAILING NO MATTER WHICH WAY THE WIND BLOWS
(Jo) Listening to the financial news during the day sometimes reminds me of being out in a sailboat when storms are approaching. You have to pay attention, with one hand on the tiller and the other ready to adjust the sail to ensure you don’t end up being blown into the drink.
The Federal Reserve has been buying billions of dollars in mortgage-backed securities. This committed action by the Fed has been artificially keeping mortgage rates low. The Fed has hinted that they may taper off on this activity sooner rather than later, which would pressure mortgage rates higher. No one knows when the winds will turn, though. Currently, rates are still hanging around the 2’s and 3’s, generally speaking.
No matter which way the wind is blowing, most financial gurus tout in their publications and podcasts that increasing your income or reducing your debt or both will build a stable infrastructure financially. Thanks to a perfect storm, we now have insanely low mortgage rates and an unprecedented rise in home values.
How are some of my savvy mortgage clients handling their boats in the windstorm?
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Reduce debt at a cheaper, stable, fixed interest rate. “Money’s cheap. You might as well borrow it,” said Dessie Danforth (not her real name.) Dessie explored a couple of refinance options to reduce the interest rate she was paying on her mortgage and lower the interest cost on other debt by rolling the other debt into her new mortgage. This refinance scenario saved Dessie several hundred dollars per month in overall debt that she committed to using to make extra payments to get rid of all of her debt sooner.
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Buy a house. Start building personal wealth. Byron’s lease was about to expire on the apartment, and his neighbors had already told him to get ready for a hefty rent increase.
“Not this time,” Byron vowed. He got his real estate team of professionals together to get preapproved for the mortgage to give him the terms he wanted. His realtor worked with him, and we put together some winning strategies so his home purchase offer would sail on through to acceptance -
Use a cash-out refinance to upgrade and modify the home. The Franklin’s decided it would save a lot of money to bring her mother home to live with them. The cash out to a low fixed-rate mortgage gave them the funds they needed to modify the home so her mother and the Franklins could live together but enjoy the privacy of their own space.
What do YOU want to accomplish with YOUR mortgage? Make your plan. Work Your Plan. If the Deal Works for your today, Let’s do it today. Call me at (901) 482-0354 or email Jo@JoGarner.com
Keith, as a CPA, you get to see up close and personal on what works and what doesn’t work when it comes to financial strategies and habits for real estate and business owners. Please share some of your wisdom with us. (Keith launches into his topics until 9:15 am break and then we can continue after the commercial break)
You’re on Real Estate Mortgage Shoppe. I’m your host, Jo Garner, Mortgage Loan Officer. What do YOU want to accomplish with your mortgage? Make your plan. Let’s work your plan if the deal works for you today, let’s do it today. When we come back Certified Public Accountant, Keith Fulfer, will be continuing to share his wisdom with us on how to set up financial habits that help keep your finances more stable. We can dig up some tax-saving nuggets too. See you back in just a moment.
THE LOOK BACK MEMPHIS TRIVIA CONTEST
2nd segment after 9:15 break: Our Look Back Memphis Trivia Contest is brought to you by notable Memphis historian, Jimmy Ogle. Twelve of his Memphis History lectures entitled Making Memphis – Storytelling by Jimmy Ogle may be viewed by Googling “JIMMY OGLE PINK PALACE”. View at JimmyOgle.com. . The 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 if you have a BIG, BIG project or a smaller project or you can do the big project in phases . The Lawhons are giving away a $25 gift card to the first person with the correct trivia answer. If you know the answer to our trivia question, call us at 901 535 WREC 901 535-9732.
Garner # 196 * 06/19/21
AutoZone Park
Question: I am in my twenty-first year of operation in Downtown Memphis at a very important intersection.
Hint: When I opened in 2000, I had one major tenant – now I have two!
Hint: I get to host numerous public events every year.
Final Hint: My name (tilte) comes from a very civic-minded business in Memphis. Who am I?
Answer: AutoZone Park. Designed by Looney Ricks Kiss Architects of Memphis with Kansas City-based HOK Sport, AutoZone Park cost $80.5 million to build. This is by far the most money ever spent on a structure dedicated to a minor league baseball team – the Memphis Redbirds, Triple-A affiliate of the St. Louis Cardinals. AutoZone Park was built to “MLB standards“, but with the absence of outfield seats or food vendors far down the foul lines, making it, for comparison purposes, a major league stadium with only the ‘good’ seats”.
It opened in 2000, replacing Tim McCarver Stadium in the Fairgrounds. The stadium also hosts some games for the University of Memphis baseball team, and most notably, the annual game with Ole Miss. In 2019, it began hosting soccer matches for Memphis’ newest sports franchise, 901 FC Football. Numerous other events are held in and around AutoZone Park, such as the annual St. Jude Memphis Marathon. On September 17 of this year, the Memphis redbirds will host the Triple-A National Championship Game.
AutoZone Park has a seating capacity of 10,000, and has been aptly described as “one-third” of a major league baseball park. AutoZone Park also has the largest video screen (60 by 60 feet full HD video display) in “Minor League Baseball. It is located 127 feet above the play field, giving a view of the board to many areas of downtown Memphis. The new video board will be the largest in “Minor League Baseball”.
Jimmy Ogle has retired from walking tours in Memphis. Twelve of his Memphis History lectures from the Pink Palace entitled Making Memphis – Storytelling by Jimmy Ogle, and now more than ten hours Downtown Walking Tours are FREE on the internet at . . . You Tube Jimmy Ogle.
View JimmyOgle.com for more info!
Jimmy Ogle has retired from walking tours in Memphis. Twelve of his Memphis History lectures from the Pink Palace entitled Making Memphis – Storytelling by Jimmy Ogle, and now more than ten hours Downtown Walking Tours are FREE on the internet at . . . You Tube Jimmy Ogle.
View JimmyOgle.com for more info!
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TOPICS COVERED BY KEITH FULFER, CERTIFIED PUBLIC ACCOUNTANT
Keith Fulfer
CPA / Sr. Advisor
Pro-Fi 20/20, CPAs
Office 404-495-4895 | Fax 404-495-4896
Email kfulfer@profi2020.com| Web www.profi2020.com
We believe that for any business, you have to know your numbers and have a plan. We focus on helping Doctors of dental practices maximize their profits, pay their taxes, and pay themselves. Then we can help the practices invest and grow the business.
Pro-Fi 20/20 works intimately with each of our clients to ensure they are more profitable and more clear and secure in their financial future.
We will talk about the key concepts that a business needs to understand in knowing their numbers.
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Make profitability a HABIT in your business
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Separate your personal and business finances
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Take home more money starting with your next deposit
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Erase your debts
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Establish an emergency fund for your business
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Create a system to pay yourself regularly
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Make worrying about taxes a thing of the past
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What are some tax advantages to owning real estate?
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TOPICS COVERED BY JO GARNER, MORTGAGE LOAN OFFICER
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What are some starting steps you see your mortgage clients take when they are ready to strengthen their personal finances for that feeling of security.
“The simplest definition of a budget is “telling your money where to go.”
― Tsh Oxenreider,
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Keep your mortgage payment low with room for other expenses to expand and contract with your life events. Some of the personal financial experts you hear on podcasts and in publications suggest keeping your monthly house note no more than 28% to 36% of your gross income. Your monthly house note, including taxes and insurance and association fees, along with her monthly debts should not exceed 38% to 41% of your gross income.
Your housing ratio is your total monthly house note including Principal, taxes, insurance, mortgage insurance (if required on your loan program) and any neighborhood association fees (even though the association fees are paid by you directly to the neighborhood association.)
$866 P&I + $100 homeowners insurance + $ 300 real estate taxes + temporary private mortgage insurance $40= $ 1,306 PITI plus the $50/month neighborhood association fee makes the total Housing Expense $1,356. If your gross monthly income is $5,000
$1,356 divided into your gross monthly income could look like this:
$1,356/ $5,000= $27% housing ratio
If you have a $400/month car note, a minimum payment of $50 on your credit card and a personal loan payment of $200 per month, your total debt, including the proposed house debt service would be $2,006/month
Your income-to-debt ratio would look something like this:
$2006/$5,000= 40%
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How do you see your mortgage clients using this perfect storm of high home values and low mortgage rates to get them feeling good about their strategies to stabilize their finances?
Dessie Danforth—“Money’s cheap, you might as well borrow it to get rid of expensive debt.”
Dessie always felt she was frugal and a good saver. To stay on her budget with her increasingly expensive lifestyle, Dessie depended on customer tips and employer bonuses which were paid regularly but never guaranteed.
One day the business hit a slump. Dessie was still making money, but just not all of the tips that made her budget work. She started pulling money gradually out of her savings and kept trying to find a better job as she continued to work her existing job. In order to give herself more time, she started using her credit card.
Every day she kept working toward getting back to her normal income, but none of her plans panned out. The house suddenly needed repairs and Dessie had to get a $15,000 personal loan.
Dessie explored a couple of refinance options to reduce the interest rate she was paying on her mortgage and lower the interest cost on other debt by rolling the personal loan with the 12% rate into her new mortgage. This refinance scenario saved Dessie about four hundred dollars per month in overall debt that she committed to using to make extra payments to pay her mortgage off sooner and pay her car off sooner too. She still had some extra money each month from the refinance to help her get through the crunch until she could get back to making the income she was accustomed to earning
Dessie paid off her existing FHA mortgage of $177,000 and rolled in the $15,000 personal loan. The new mortgage was a conventional loan with no mortgage insurance so Dessie saved almost $140 per month from not having to pay the monthly FHA mortgage insurance. The lower rate saved another $40 per month. Paying off the personal loan saved her yet another $200/month.
By paying $200 per month as a prepayment to principal on her mortgage, she was scheduled to have her mortgage paid off three years sooner than the time left on the original mortgage before she refinanced it. Once her income moved up to normal again, Dessie planned to put more prepayments on the principal of her mortgage to get it paid off even sooner.
“When money’s cheap, you might as well borrow it,” said Dessie Danforth (not her real name.)
Byon’s story…Buy a house. Start building personal wealth.
Byron’s lease was about to expire on the apartment, and his neighbors had already told him to get ready for a hefty rent increase.
“Not this time,” Byron vowed. He got his real estate team of professionals together to check out homes on the market and to get preapproved for the mortgage to give him the terms he wanted.
Bryon had some credit issues, but he set to work paying down some balances on his credit cards to show that he was using less than 30% of his credit limits on the credit cards. Bryon applied for some down payment assistance.
Getting his mortgage approved was not the only stone blocking his way to owning his own place. Other people were making offers to purchase the home he wanted. For Byron it was a game of persistence.
His realtor worked with him, and we put together some winning strategies so his home purchase offer would finally be accepted by a seller. Byron was on his way to owning his own home and building his own wealth and not his landlord’s.
Cash out refinance to get low fixed rate financing to remodel and reinvent the home
This scenario has been happening a lot. Intergenerational trending has seen an even bigger resurgence since families have been moving their aging parents in with them. Adult children have been moving back in with parents too. For many reasons, homeowners have found that this is the best time to renovate and reinvent their homes.
REAL ESTATE TIP OF THE WEEK (CPA Keith Fulfer shares a real estate related money-saving or time-saving tip): Jo Garner shares tip for homeowners taking advantage of refinancing to lower mortgage rate, shorten term, or freeing up cash per month
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 Concorde Career College 5100 Poplar Ave 1st floor of the Clark Tower. Talk Shoppe will be presenting “The Mastermind Principle based on the book Think and Grow Rich by Napoleon Hill.
Talk Shoppe events are free thanks to supporters like Talk Shoppe’s business coach, Tim Flesner. Tim can help you organize the best strategy to build your business and maintain your profit. Connect with Tim Flesner at tflesner@biz-rx.com (901) 213-7830
Thank you to Taylor Morse, owner of Cartridge World of Collierville, TN, saving you 30% or more on your printing costs. Taylor can help you get the best printer to suit your needs too. Contact Taylor Morse of Cartridge World of Collierville, TN (901) 853-3230
Brett Carter of Servicemaster by Cornerstone can help you clean up your home or office after a fire, flood or bio hazard. Don’t go it alone, call Brett Carter at Cornerstone (901) 624-9200
4. Subscribe at www.JoGarner.com and you can get our weekly blog posts with podcasts conveniently in your inbox.
5. Real Estate Mortgage Shoppe reminds you to 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 AND ARE BASED ON TRUE STORIES BUT WE USE FICTIONAL CHARACTERS AND DO NOT DIRECTLY REFLECT REAL PEOPLE OR EXACT DETAILS IN ANY OF THE SITUATIONS.
QUOTE CORNER:
Jimmy Dean “I can’t change the direction of the wind, but I can adjust my sails to always reach my destination.”
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REJOINDERS:
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Rob Draughon and Shelley Rothman, real estate attorneys with Griffin Clift Everton and Maschmeyer (901) 752-1133
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Mary Lou Nowak, owner of Mid-South Home Helpers (non-medical assistance in the home) (901) 414-9696
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Genell Holloway, Eagle Hollow Enterprises. Insuring your golden benefits. Help with Medicare, and other benefits (901) 270-1127
Transitional Music: “I Am Sailing” by Rod Stewart; “A Sailboat In The Moonlight” by Billie Holliday; “Sailing” by Christopher Cross; “Memphis” by Johnny Rivers for the Look Back Memphis Trivia Contest
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ABOUT KEITH FULFER, CERTIFIED PUBLIC ACCOUNTANT
Keith Fulfer, C.P.A.
Certified Public Accountant
He has over 17 years of tax and accounting experience, serving both small and medium-size accounting firms. He also has experience in the financial planning field.
Keith has a B.B.A. in accounting from Abilene Christian University as well as a M.S. in Religious Education. He has extensive experience in the Information Technology area, education, small business accounting and taxes, and in non-profit taxes.
Keith and his wife, Nancy, have five children and four grandchildren. They enjoy their two rescue dogs, Bozwell and Lily, and working in and around the yard and garden. They are members at Balmoral Presbyterian Church in Memphis.
Keith is a member of the American Institute of Certified Public Accountants and the Tennessee Society of Certified Public Accountants (TSCPA) and is a past board member of the Memphis chapter of the TSCPA, and currently serving on the TSCPA Council representing the Memphis Chapter of the TSCPA.
Keith Fulfer
CPA / Sr. Advisor
Pro-Fi 20/20, CPAs
790 Peachtree Industrial Blvd, Suite 200, Suwanee, Georgia 30024
Office 404-495-4895 | Fax 404-495-4896
Email kfulfer@profi2020.com| Web www.profi2020.com
FOLLOW US ON SOCIAL MEDIA!
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ABOUT JO GARNER-MORTGAGE LOAN OFFICER:
WHAT DO YOU WANT TO ACCOMPLISH WITH YOUR MORTGAGE?
www.JoGarner.com (901) 482 0354 jo@jogarner.com twitter @jogarner NMLS# 757308 (currently working with Sierra Pacific Mortgage, Inc)
“Whatever YOUR personal priorities are, my job is to help you get the mortgage terms that will give you bragging rights when you talk about it and help you score on hitting your goals .”
As a mortgage loan officer, my job is to help you get to the benefits you want from your financing terms. What is most important to you? I can help you find the financing terms that will help you get to what you want. What is your comfort level on a house payment? How much are you comfortable paying down,? What type of financing do you need to get the house you 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.”
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 25 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 25 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 Garner also host the radio show Real Estate Mortgage Shoppe airing on News Radio AM 600 WREC and iHeart Radio with podcasts and show notes published on www.JoGarner.com