Your Home Worth and How To Create Wealth With Your Mortgage?

Your Home Worth and How To Create Wealth With Your Mortgage?

Podcast 7-12-14

 

HIGHLIGHTS FROM TODAY’S PODCAST :

 

MARKET NEWS

 

LOOK BACK MEMPHIS TRIVIA CONTEST

 

QUESTIONS ANSWERED BY TOM KING:

1. 1.     How are you dealing with the challenges of new construction appraisal values?

 

1. 2.     How does the real estate costs differ on an appraisal vs actual value?

 

1. 3.     What is the difference between a tax appraisal and a mortgage appraisal?

 

1. 4.     What are some things you can do to your home to add the most value?

 

 

QUESTIONS ANSWERED BY JO GARNER:

1. What are some ways your customers have created wealth by using their mortgage?

 

1. 2.      There is the age-old question—How can I get rich? 

 

 

4^TH SEGMENT:   REAL ESTATE TIP OF THE WEEK:  (Tom King or Jo shares a practical tip about buying investment property)

 

ANNOUNCEMENTS

 

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Good morning Memphis!  Good morning around the country on IHEART radio.  You’re on the Real Estate Mortgage Shoppe program and I’m your host, Jo Garner, Mortgage Professional with Evolve Bank and Trust.  Co-hosting today is Tom King, appraiser with Bill King Company.

<Tom introduces himself  and talks about what he does as an appraiser (and tax appeal expert?)>

 

1. 1.     (Jo) Our general topic today is “What’s Your Home Worth and How To Create Wealth With Your Mortgage?”  But Tom and I want to talk with you about any real estate topic you want to talk about.  Give us a call at 901 535-WREC  (901) 535-9732.  Tom, what have you seen as market trends in the real estate appraising world?    <Tom talked about trends he is seeing>

• (Jo)  This week the job situation was better than expected which normally send mortgage rates up, but when market investors are not certain about the markets, they tend to want to keep their money more securely in bonds rather than stocks and this keeps mortgage rates lower. So-o-o- Yesterday mortgage rates eased down to the lowest they have been this month July 2014 ending the day at 30YR FIXED – 4.125- 4.25%
• FHA/VA – 3.75%
• 15 YEAR FIXED –  3.375%
• 5 YEAR ARMS –  3.0-3.50% depending on the lender

So for the headlines this week, we still have mortgages in the 3’s and 4’s, there is still a window of opportunity for homeowners to refinance to much lower rates and sometimes without even having an appraisal.  Here’s another headline this week. There is a record number of homeowners around the nation whose Home Equity Lines of credit are about to convert from interest-only payments to having to pay principal AND interest with no option to borrow further on the credit line.  If YOUR home equity line is about to convert to a full payment and no more draws on the credit line, call me at 901 482 -0354.  We may be able to restructure your mortgage to include this credit line at a low fixed mortgage rate instead of the variable rate you currently have.

 

<Tom makes a comment about the people who refinanced on the special HARP refinance program but could not refinance their 2^nd mortgage equity lines. >

 

 

Word To The Wise:  “The journey of a thousand miles begins with a single step.” If you are one of the thousands of people who are sitting on a mortgage rate over 5% and have not at least checked into refinancing or purchasing a home, contact your mortgage officer today and start comparing the numbers.  If you want to look into a home purchase, contact your realtor.

Susan and I would like to hear what you and your family want—not JUST for today but over the next few years too.  Like one of our customers this week –the refinance is saving her over $400 per month that she can enjoy right away.   Other families want to enjoy a positive cash flow each month by buying  a few rental properties and have those properties increase their retirement income now and for years to come or investing in something with compounded interest to create wealth over time.   Whatever you think your stumbling blocks are, I believe I have some solutions for you.  Let’s talk. Call us on the air at 901 535-WREC or 901 535-9732.

<Tom King talks about where homeowners and homebuyers can find value >

(Jo) Knowing the value of your real estate property is important if you are planning on selling your home, leasing your home to others, changing ownership like in the case of an estate sale, divorce or conversion to a financial trust. Knowing the value of your money is equally important.  What are you paying in interest costs over the next 5 years? What are you paying in interest costs for the life of the loan?  If borrowed $200K loan 8 years ago at 5.25% 30 term and you pay the $1,104 principal and interest each month, at the end of 30 years, you would have paid $397,586 and $197,586 of that is just interest.  A 15 yr loan at 3.5% today would cut the interest down AND the term.  If you have 22 years left on this loan and we take it to 15 yrs with a 3.5% rate, you would pay over the next 15 years only $257,357 with only $57,357 in interest payments. We are cutting out 7 years of the $1,104 payments would save you about $105 thousand dollars in total payments. Wow! It pays to pay the mortgage off early.  Or you can keep the payment low by going to a 20 yr term and  only do away with 2 years payments but put your money saved each month into a compounded interest investment.   Susan Belew and I would like very much to work the numbers with you to see how much YOU can save on a refinance or mortgage restructure.

<Tom comments>

 

1. 1.     (Jo) Our general topic today is “What’s Your Home Worth and How To Create Wealth With Your Mortgage?”  Whatever real estate topic you want to discuss, give a call at (901) 535-WREC and (901) 535-9732.   Tom, how can you find out how much your home is worth? 

 

 

2ND SEGMENT  9:18 AM It’s time for the Look Back Memphis Trivia Contest brought to you by notable Memphis historian Jimmy Ogle.  Jimmy Ogle gives free walking tours in Downtown Memphis during the Spring and Autumn. For information about Jimmy Ogle and his schedule for the historic walking tours, go to jimmyogle.com.  Our Look Back Memphis Trivia Contest SPONSOR is Marlene Foster of ADT Security Services—the number one security system.   Give Marlene a call at 901 232-6277.  She will take good care of you  Marlene is giving away a $25 gift card to the first person who calls with the correct answer to our Trivia Contest.   If you know the answer, call us on the air at (901) 535 WREC.  (901) 535 9732.

Garner # 21  07/09/14

River Tower

Question: 

Hint:  I was built on the Memphis riverfront in 1964.

Hint:  My existence caused newspaper report Paul Coppock to lead an easement campaign for public access along the Memphis riverfront

Hint:  I had tennis courts, swimming pool and a membership club in an attempt to attract Memphians back Downtown.

Last Hint:  I was converted to a Holiday Inn in the late 1960s, but closed when the Crowne Plaza opened by the Memphis Cook Convention Center in 1985.

Answer: The Rivermont

Built in 1964, The Rivermont was a luxury high rise on the south bluffs of Downtown and the Memphis riverfront.  The Rivermont Club offered amenities such as tennis, swimming and a dining program.  Converted into a Holiday Inn in the late 1960s, it became a place for events, banquets, conventions and meetings of all kinds. In 1971, Elvis Presley was honored as one of the “Outstanding Young Men of America” at a Memphis Jaycees luncheon. The original developers wanted all land from Riverside Drive to the bluffs, but Paul Coppock, reporter for The Commercial Appeal, led a campaign to reserve an easement along the bluff for public access between Martyrs Park and Ashburn Park.  The Memphis Park Commission appreciated Mr. Coppock’s efforts and added is name to the little park now known as Ashburn-Coppock Park, just south of Tom Lee Park. The Rivermont was later converted to a Holiday Inn high rise hotel property.

The Holiday Inn Rivermont was closed when the Crowne Plaza opened next to the convention center in 1985 by Holiday Inn. The Rivermark Apartments were opened (with a distinct green strip of neon across its north roof), then the north tower was demolished, and then eventually converted to condominiums, now known as the River Tower. So, residential living and public access along the south bluffs of the Memphis riverfront is guaranteed, making the area a very nice place to live and play.

Last Week:  Vollintine-Evergreen Community Association. The VECA  neighborhood encompasses one of the largest collections of early 20th Century residential and commercial buildings in the City of Memphis. The neighborhood includes four separate National Register Historic Districts reflecting different periods of the neighborhood’s development from 1890 to 1957. The National Register nominations for these districts provide a fascinating and detailed history of the area, as well as a list, architectural descriptions, and dates of construction for more than 4,000 commercial and residential structures within the neighborhood.

The neighborhood’s four historic districts include:  Vollintine Evergreen Historic District (1890-1946), bounded by Watkins, Vollintine, Faxon, Jackson and University streets;  Vollintine Evergreen North Historic District (1914-1947), bounded by McLean, Vollintine, University and Rainbow Circle. Access the nomination for this area VECA.  Vollintine Evergreen Avalon Historic District (1925-1947), bounded by Stonewall, Vollintine, Evergreen and Cypress Creek. Access this nomination; and, Vollintine Hills Historic District (1946-1957), bounded by Vollintine, Brown, McLean and Evergreen. Read about the history of Vollintine Hills.

Architectural styles found in the Vollintine Evergreen neighborhood include Queen Anne, Four Square, Craftsman, Bungalow, Tudor and English Cottage Revival, Dutch Colonial Revival, Spanish Revival, and Eclectic styles. The neighborhood also contains several historic commercial districts, as well as numerous churches, schools, apartment buildings, and Rhodes College. In addition, there are historic MLGW utility structures built for pumping artesian water, WPA bridges and the former L&N Railroad, which has been converted by the neighborhood into a public footpath known as the V&E Greenline.

Originally, back in the 1890’s, the VECA region of Memphis was mostly dairy farms that were divided into two communities: Terrytown, established by the Terry family, and Springdale, a stop on the L&N Railroad between Memphis and Nashville.

Jimmy Ogle gives free walking tours in Downtown Memphis during the Spring and Autumn.
Go to jimmyogle.com for the 2014 Spring season schedule and locations.

Shelby County Courthouse: Third Thursday each month at 12:00 noon
TUESDAY TOURS: Tuesdays at 11:45 a.m. for about four blocks from a different street corner each week, beginning again in September!

 

QUESTIONS ANSWERED BY TOM KING:

1. 5.     How are you dealing with the challenges of new construction appraisal values?

 

1. 6.     How does the real estate costs differ on an appraisal vs actual value?

 

1. 7.     What is the difference between a tax appraisal and a mortgage appraisal?

 

1. 8.     What are some things you can do to your home to add the most value?

 

 

QUESTIONS ANSWERED BY JO GARNER:

1. What are some ways your customers have created wealth by using their mortgage?
   1. A.    (business man doing cash out on primary residence $300K loan at 3.75% on 30 yr loan fixed for 5 yrs. Was making double digit returns on his money he invested in his business, so he took out a $300K mortgage and leveraged it into even higher returns.

 

1. B.    Military officer has been moving around the country for over 10 years.  When he was transferred to a different state, he would purchase a primary residence and when he moved away, he would retain the property as a rental property.   Now, after over 10 years later, this client’s habit of buying property every time he was stationed in a new town—his habit  has amassed a real estate property portfolio of great worth and he  managed to pay down quite a bit on the balances—making his equity position stronger.
2. C.    Young couple paying over $900 per month for rent, just bought a primary residence that was a foreclosure so they got to buy it had a more than fair price.  Now their house note is over a third less per month than what they were paying in rent and they have a much bigger house too.
3. D.    Refinancing and lowering rate and shortening the term

 

1. 4.      There is the age-old question—How can I get rich? 

Follow the advice of some really wealthy people throughout history. Model the people you know today who have become financially independent like the people described in the book The Millionaire Next Door.    Benjamin Franklin and J Paul Getty from the past both preached that if you want to create wealth—Spend Less Than You Earn and Invest The Difference Wisely.  Do this over and over again until the habit is set in concrete.  Then, once your income from your investments exceed your expenses, you have arrived at financial independence.  Simple right?

Setting up a realistic budget is very important and especially leaving a little room for having fun—being too frugal can isolate you from life –enjoy life.  Cut unnecessary expenses and you can use the extra money to invest in compound interest paying accounts that grow in value over time, you could invest in more real estate and definitely leave a little room to pay something—even a little extra—to get rid of the mortgage sooner.  If you have a 30 year mortgage and you can pay just one principal and interest payment extra per year, you can eliminate about 7 to 8 years off your mortgage term.  If you want to pay off the mortgage but don’t have the extra principal and interest payment in a lump sum, you can arrange with our bank to pay one twelfth of the principal and interest payment per year and still knock off about 7 or 8 years from your mortgage.

 

 

 

 

 

 

4^TH SEGMENT:   REAL ESTATE TIP OF THE WEEK:  (Tom King or Jo shares a practical tip about buying investment property)

 

Jo’s announcements:   Talk Shoppe offers free education and networking to anyone interested in real estate or in business.  This Wednesday July 16th, 2014 9A-10A at the YMCA Corporate office 6373 Quail Hollow Rd 2^nd floor Memphis, TN 38119 Talk Shoppe presents: “The Real Estate Panel: Expert Advice From the Pros On How To Have a Smooth Real Estate Closing”   For more information about Talk Shoppe, go to www.TalkShoppe.BIZ 

 

1. 1.     Talk Shoppe gives a big thank you to the YMCA of Memphis for providing a place to hold the free business events for the community.  The YMCA has opened registration for the YMCA Corporate Games, giving businesses a chance to PLAY LIKE A KID AGAIN …and….get some great publicity while having fun.   If you would like for your business or employer to participate, contact the Y at www.ycorporategames.org or call Shauna Bateman at 901 766-7677 x 116

 

 

Transition Music:  “If My Nose Was Running Money, I’d Blow It All On You” by Aaron Wilburn;   “My Last Dollar” by Dale Deacon Jones;  “I Might Be Cheap, But I’m Not Broke” by Rik Roberts

Look Back Memphis Trivia Contest:  “Memphis” by Johnny Rivers

 

Rita Connally, Personal Trainer at the YMCA Schilling Farms Collierville, TN 38017  (901) 413-5298

 

Eric Meyers, The Confectionery Memphis 901-277-4428

 

Reco Johnson, Organo Gold Coffee  www.betterlifebettercoffee.com 901 949-5635

 

ABOUT TOM KING:

Tom King, certified Shelby County property tax appeal expert with King & Vaughan Consulting, is also a 35-year veteran appraiser in the Memphis area.   taxappealexpert@gmail.com  and www.golowertax.com

 

Jo Garner’s Bio

www.MortgageLoansBlog.com  www.MoneyShoppe.NET  (901) 482 0354  jogarner@mindspring.com

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.BIZ  She was also the editor of Power Shoppe, a free weekly ezine designed for real estate professionals and others indirectly connected to the real estate industry and currently publishes on her blog www.MortgageLoansBlog.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.