Today on Real Estate Mortgage Shoppe we will besharing some stories of people who have overcome some challenges in life andhow they were able to angle their way into some personal independence owningtheir own home.
Tom King, expertappraiser, will be sharing some real estate trends and opportunities in ourcurrent market.
What do YOU want to accomplish with YOUR mortgage? Subscribe at www.TNRDHomeLoans.com to get Real Estate Mortgage Shoppe podcasts with shownotes.
To Your Success, McKenzie Mortgage RD Loans, Mortgage Loan Officer NMLS# 757308 (615) 924-6215 This email address is being protected from spambots. You need JavaScript enabled to view it.
Let’s Get This Party Started…
Good morning, Memphis! Welcometo our internet listeners and podcast listeners across the 50 states! You’re onReal Estate Mortgage Shoppe. I’m your host, McKenzie Mortgage RD Loans, Mortgage Loan Officer. You can connect with me at www.TNRDHomeLoans.com. Our generaltopic is HAPPYBIRTHDAY AMERICA! REASONS TO CELEBRATE YOUR PERSONAL INDEPENDENCE OWNING YOUROWN HOME. Subscribe to get RealEstate Mortgage Shoppe podcasts with show notes at www.TNRDHomeLoans.com Call us whilewe’re live today July 4th, 2020 at (901) 535-9732.
Back in the studio we have TomKing with Bill King Appraisal Company. Tom, you have appraised thousands of homes inthe Shelby County, Fayette and Tipton county TN areas. I understand lately youare working wall-to-wall every day doing real estate appraisals for peoplebuying homes, selling homes and refinancing. Take a moment and tell our new listeners a little bit about you and whatyou do for your appraisal clients. ( Tom takes 1 minute or so to introducehimself and talk about the types of appraisals he does)
(Jo) Todaywe are celebrating our beautiful country, America, land of the free. We are talking about ways that owning yourown home can help you enjoy your personal independence. I was listening again to a news story from anational news agency out of Washington, DC. The story was about 24 metropolitan cities in the United States OfAmerica where it was much less.
The news anchor talked specifically about Memphis, TN and how our averagerent of $914/month is DOUBLE the monthly cost to buy a home in the same area.As the anchor was ending the segment she yelled to her production team, “ Iwant to live in Memphis!”
Even if you are a listener living on the West Coast where it may not beas profitable up front to own vs rent, there are still advantages ofhomeownership that we call all enjoy.
Number one: The landlord is not knocking on your door every year toraise the rent higher and higher. Thehard-earned money you pay each month to live in the house is not simply payingoff someone else’s mortgage, it is paying down your mortgage and continuing togive you more and more equity and wealth.
Number Two: The United Statesof America is the only country in the world that offers homeowners a true 30 -yearfixed rate. That means you can lock in a fixed rate mortgage and the principleand interest on that mortgage NEVER CHANGES. As prices go up on things year after year, your neighbors who arerenting are having to pay more and more each year to their landlord. But more and more of your budget is freed upto travel, invest and do other things you love because your house note is thesame low payment year after year. (Taxes and insurance may go up marginally butnot your principal and interest payment.)
Number Three: When you own yourhome, you have the freedom to live in it however you wish. Check the neighborhood covenants andrestrictions. But, you can modify the home to fit your changing needs andwants. You cannot make major changes toa landlord’s home. You may want tobuild a pool in the back yard with a covered patio an outdoor bar-b-queentertainment area. You may want a garden or any number of things that can makeyour life better.
Number Four: Check with thefinancial advisors. Ask about the manytax advantages to owning a home that you do not get from renting. One of them is the capital gainsadvantage. If you have lived in yourhome at least 2 years over the last 5 years, you can sell and make a profit upto $250,000 to $500,0000 WITHOUT BEINGTAXED.
Number Five: You can buy a home with very little down, even zero downin some cases, and leverage this to get a home worth hundreds of thousands ofdollars. There are many differentgovernment-backed mortgages and combinations of loan programs that allow you toget into a home for zero to very little down. USDA 100% loan, Veteran 100% loan, FHA3.5% down, various down payment assistance programs for first-time homebuyersand some programs that can work for homebuyers who are NOT first-timehomebuyers.
Number Six: Pride of ownership.Stable relationships with neighbors and associations in the area.
What do YOU want to accomplish with YOUR mortgage? MAKE YOUR PLAN. LET’S WORK YOUR PLAN. IF THEDEAL WORKS FOR YOU TODAY, LET’S DO IT TODAY. Connect with me at www.TNRDHomeLoans.com. Email me at This email address is being protected from spambots. You need JavaScript enabled to view it. or just call me at (615) 924-6215.
Tom, as our expert appraiser, you can describe what has been happeningwith our Memphis real estate values during this Coronavirus pandemic time inhistory. Tom talks about the realestate market and how real estate values and buying/selling and refinancingtrends are moving during our continued pandemic situation 1. what real estate values have been doing inthe Greater Memphis area. 2. What real estate trends he sees in our area
Tom King reminds us about the economic law of supply and demand. Whenthe demand is high and the supply is low, prices tend to be pushed upward. We are seeing fewer homes on the market andlots of demand. The demand is largelyfueled by the extremely low mortgage rates.
You need to be prepared with a strong mortgage prequalification letterand use every strategy you can to make your home purchase offer more compellingthan any competing offers.
More…
You’re on Real Estate MortgageShoppe. I’m your host, McKenzie Mortgage RD Loans, Mortgage Loan Officer. What do YOU want to accomplish with yourmortgage? Make your plan. Let’s work your plan if the deal works for you today,let’s do it today. When we come back TomKing and I will be sharing more about the reasons you can celebrate YOUR independenceby owning your own home in America. See you back in just a moment.
THE LOOKBACK MEMPHIS TRIVIA CONTEST
2nd segment after 9:15 break: Our Look BackMemphis Trivia Contest is brought to you by notable Memphis historian, Jimmy Ogle. Twelve of his Memphis History lecturesentitled Making Memphis – Storytelling by Jimmy Ogle may be viewed byGoogling “JIMMY OGLE PINK PALACE”. Viewat JimmyOgle.com. . The Look Back Memphis Trivia Contest is sponsored by John and Jennifer Lawhon ofLawhon Landscape (901) 754-7474 the Lawhon’s can help you plan your landscapingif you have a BIG, BIG project or a smaller project or you can do the bigproject in phases . The Lawhons are giving away a $25 gift card to the firstperson with the correct trivia answer. If you know the answer to our trivia question, call us at 901 535 WREC901 535-9732.
Garner # 181 * 07/04/20
Memphis Pink Palace Museum
Question: I was designed to be a residence in an area formerly known as“Buttermilk Town”, but now I am one of the more popular attractions in Memphis.Who am I?
Hint: My original name was tobe Cla-La-Clare (named after the developer’s children).
Hint: My original developerwas a Memphis businessman that was quite innovative in his field of endeavor.
Hint: My neighborhood waslater developed into some nice homes by a company from Louisville, Kentucky.
FinalHint: There is a color in my name!
Answer:Memphis Pink Palace Museum. The Memphis Pink Palace Museum and Planetarium servesas the Mid-South’s major science and historical museum and features exhibitsranging from archeology to chemistry. Over 240,000 people visit the museum eachyear. The Sharpe Planetarium, housed at the Pink Palace, features 165-seattheater-in-the-round auditorium and offers public shows that project starfields, visual images, and laser lights on a domed ceiling. The Crew TrainingInternational IMAX Theater opened on January 21, 1995 and features a four-storyhigh movable screen. The Pink Palace Museum, the Sharpe Planetarium, and theCrew Training International IMAX Theater are accredited members of the AmericanAlliance of Museums.
The headquarters for the Pink PalaceFamily of Museums is covered in pink Georgian marble; the mansion was given tothe city of Memphis in the late 1920s by Clarence Saunders, the founder ofPiggly Wiggly, because of his financial troubles. He had the residence built in1923, but lost a fortune and the home due to financial reversals on WallStreet. In March 1930, after the Stock Market Crash, Memphis Museum of NaturalHistory and Industrial Arts opened in the mansion. The original exhibitsfeatured stuffed animals and birds, dolls, anthropological items from localwealthy collectors, as well as items related to Memphis’ history, particularlyConfederate military uniforms and memorabilia.
Bonus: Jimmy Ogle’s four distinct tours ofElmwood Cemetery that were scheduled for Saturday, April 25 are postponed untilAutumn. For more information, call 901-774-3212 or go to elmwoodcemetery.org.
Jimmy Ogle has retired from walkingtours in Memphis. Twelve of his MemphisHistory lectures from the Pink Palace entitled Making Memphis – Storytelling byJimmy Ogle, and now more than ten hours Downtown Walking Toursare FREE on the internet at . . . YouTube Jimmy Ogle.
View JimmyOgle.comfor more info!
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TOPICS COVERED BY TOM KING, REAL ESTATEAPPRAISER
- What current real estate trends are you seeingwith our real estate values?
- What real estate trendsare you seeing in the Greater Memphis area
- What steps can someonetake to appeal a low appraisal?
- What types of repairsdo appraisers tend to require to be fixed before closing?
- What aspects to owningyour own home can YOU share that bring people personal independence?
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TOPICS COVERED BY JO GARNER, MORTGAGE LOAN OFFICER
- What are some of themost important reasons that owning your own home vs renting? (covered in thefirst segment)
- Examples of homeowners who are enjoying more independencewith the homeownership advantages
- RaymondRidley (not his real name) started out as a real estate agent helping people buy and sell homes. He worked day and night as a realtor and onweekends too. His commissions were highbut at the end of the year he had to pay thousands of dollars to the InternalRevenue Service and other taxes.
To overcome hisdiscouragement, Raymond worked harder and sold more houses. But the more he produced as a realtor, the more taxes he paid—up to 50%of his income at one point.
Raymond had beenobserving some of his real estate investor friends. They legally paid very little in taxes ornone at all? Wow! If he didn’t have to pay out 50% of hishard-earned real estate commissions to Uncle Sam, he would be a wealthyman.
That is when RaymondRidley started buying homes himself to rent out to tenants. Today he enjoys working as a realtor but more than that, as a realestate investor he enjoys legally being able to keep all of his earnings usingthe tax deductions he now has as an investor. Real estate over the years served as a hedge against inflation too. Double duty…, giving Raymond his financialindependence and more time with his family too.
Raymond shared with theTalk Shoppe group here in Memphis that one of the most surprising benefits from buying a lotof rental properties, is that he hired his kids to work with him fixing themup. The rental renovation projectsbonded the family and created some great memories and life lessons.
| The Veterans Administration Loan | |
| Edited version of this article published in Power Shoppe E-zine 2006 by McKenzie Mortgage RD Loans all rights reserved (Mortgage 101 Series) It had been a long, overseas military tour. Wayne Tozer’s eyes anxiously combed over the sea of people with their children. They were waving small American flags and some were waving posters with “Welcome Home Our Heroes” written on them. Wayne’s heart skipped a beat and he had to catch his breath when he finally caught sight of his wife holding their three year old son. They had not seen him yet and he worked his way toward them through the jostling crowd. Besides spending time with his family and getting settled in his new civilian job, Wayne’s commitment was to purchase a nice home for his family that would build equity and give them room to grow. Wayne’s credit was okay and his income would be enough to manage the house note. The problem? Wayne did not have the cash to put down nor did he have any to pay closing costs. Key Puzzle Pieces: (1) Wayne Tozer’s veteran status and time in the military made him eligible for the zero down VA loan. (2) The sellers were willing to pay some closing cost and prepaid property taxes and insurance. Mortgage Solution: The Veterans Administration Loan allows the eligible veteran to get a 100% loan. If the seller agrees to pay all of the closing cost and prepaid taxes and insurance, the veteran pays zero down to move in. The VA programs offer fixed rate terms. VA Fixed Rate
Max loan amount: No longer a maximum loan amount as of 2019 Borrower Eligibility: The borrower must have served in the regular military a minimum of 2 years or the full term. (at least 90 days in war time and 181 days in peace time.) Cosigner: Not applicable. The coborrower can be married to the veteran Or have his/her own VA eligibility. Must occupy the property. Documentation: Fully Documented Minimum Down Payment: Zero VA Funding Fee: The VA funding fee can be paid in cash at closing or it can be rolled into the loan provided the loan does not exceed the maximum allowed. The seller, the lender or the veteran can pay the funding fee. The amount of the funding fee varies according to the amount of down payment, the type of service, and term of loan. For a veteran from the regular military, using his entitlement for the first time with zero down, the funding fee percentage would lower than a subsequent use of the VA program. There is no monthly VA funding fee for veterans when the documentation from VA indicates reasons allowing that veteran to waive the funding fee. (Example in current market to this edit—veterans with 10% or higher VA declared disability) (There are exceptions to the payment of the funding fee) Occupancy: Primary Residence Prepayment Penalty: None Property Types: 1-4 units Ratios: 43% is the suggested maximum debt-to-income ratio. The VA loan program also considers the estimated maintenance cost of the house, square footage etc. Subordinate Financing: Allowed under certain conditions. Seller Contributions: Up to 4% of the sales price or appraised value, whichever is less or whatever the normal costs are for the geographic area Source of Funds: Gifts allowed with documentation and some restrictions. Term: 30 yr and 15 year on fixed rate FHA loans. J. Garner, Instructor Professional School of Real Estate 2006 __________________________________________________________________ |
TheJohanassen’s story—HIGH Hopes With A LOW Payment & LOW Down payment
I got to attend the closing with two of my mortgage clients—a marriedcouple who have spent much of their lives serving others overseas. On returning stateside they really wanted to own their first home. Theirchallenge was not having the funds to close on a home and not having a largeincome to afford a payment on a house like the one they needed.
The Johanssons (not their real names) put a good realtor on their teamwho listened to what they really wanted and needed in their home. The realtor watched the market daily formonths until she found a home that the Johanssons knew was meant to be theirhome.
But the challenge was that the price of the house with a normal downpayment would wreck their budget and leave them no emergency funds. The Johanssons laid out their boundaries onpayments and move-in costs. Because of their income level and the location ofthe home they wanted to buy, they qualified for a special down paymentassistance product that offered $10,000 down payment assistance and a low interest rate. Using this product, the house was well within their grasp. The payment was comfortable and they hademergency funds left over too.
When we all arrived at the title office to complete the closing of theloan and transfer of title to the Johanssons, it was a celebration time. While Mr. Johansson signed the papers, Ms.Johansson talked excitedly about how she planned to decorate the home and makeit a happy place for their family and friends to come visit. When the last paper was signed andnotarized, Mr. and Ms. Johansson rushed into each other’s arms in celebrationof achieving he their dream of owning their own home. We were all laughing and cheering. It was a long won victory.
As we took pictures and shared more stories of the Johansson’s journeyto homeownership, I felt that rush of happiness and fulfillment, knowing I hada part in making a lifelong dream come true for this very deservingcouple. I reminded myself, “This is whyget up, get ready and get to work each day. This is why I do what I do as a mortgage loan officer.”
REAL ESTATE TIP OF THE WEEK (TomKing offers tip):McKenzie Mortgage RD Loans shares tip for homeowners taking advantage of refinancing to lowermortgage rate, shorten term, or freeing up cash per month. During the Great Depression of the 1930’s theUnited States introduced the wonderful 30 year fixed rate and the FHA low downpayment loan program that has helpedmillions of of people since then to own their own homes. I believe that we willsee some good things come from our pandemic situation too.
Tom thanks our first-responders, health careworkers and military soldiers and veterans for protecting and helping us aroundthe country.
It takes special people to do their job well
ANNOUNCEMENTS:
Talk Shoppe offers freenetworking & education to anyone interested in real estate or in businessand health and wellness. Talk Shoppe meets every Wednesday 9A-10A CT virtuallyin our awesome location. Go to www.TalkShoppe.com click on he UpcomingEvents tab and then click on the zoom web link to join us every Wednesday. This Wednesday July 8th, 2020 MarkLoden of MKL Personal Monthly Budgeting Service will be presenting “FiscalFitness for your Personal Fitness”
Talk Shoppe events arefree thanks to supporters like Tim Gilliland of www.BackupRX.com When you need to recover lost data on yourcomputer, you will feel very thankful when you call Tim at BackupRX and simplydownload all your data and system files immediately when you need it. Contact BackupRX about getting your dataautomatically backed-up at www.BackupRX.com
Thank you to Brett Carter ofServicemaster by Cornerstone They restore residential andcommercial properties and their contents when they are damagedby catastrophes resulting from water, fire, mold, odor or biohazards. Thank youto Servicemaster by Cornerstone for your service in sanitizing ambulances andsheriff’s cars. You have a greatreputation for treating your clients well. Contact Servicemaster by Cornerstone at (901) 624-9200 https://smcornerstone.com
2. Happy 244th Birthday to the UnitedStates of America! This weekend as wecelebrate our freedom in the great nation —be grateful for all the otherblessings we enjoy. Bless someone elsetoday—your neighbor, a friend or a family member.
3. Thank you to our veterans andsoldiers who have made great sacrifices to keep America free.
4. Subscribe at www.TNRDHomeLoans.com and you can get our weeklyblog posts with podcasts conveniently in your inbox.
5. RealEstate 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 ONANYTHING YOU HEAR OR SEE FROM THE CONTENT ON THIS SHOW OR BLOG POSTS. THEINFORMATION WE SHARE ON REAL ESTATE MORTGAGE SHOPPE IS GENERAL IN NATURE MEANTFOR GENERAL EDUCATIONAL PURPOSES ONLY. ALL EXAMPLES GIVEN FOR ILLUSTRATIONPURPOSES ON REAL ESTATE MORTGAGE SHOPPE AND ARE BASED ON TRUE STORIES BUT WEUSE FICTIONAL CHARACTERS AND DO NOT DIRECTLY REFLECT REAL PEOPLE OR EXACTDETAILS IN ANY OF THE SITUATIONS.
QUOTE CORNER:
Former US President John F Kennedy- “So my fellow Americans, Ask not what your country can do for you. Ask what you can do for your country.”
Retired Senator Johnny Isakson said, “Wide ownershipof land in America is the difference between America and, really, the rest ofthe world. Most nations are nations oftenants. We are a nation of homeowners.”
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REJOINDERS:
- Mary Lou Nowak, Mid-South Home Helpers(non-medical assistance in the home) (901) 414-9696 www.midsouthhomehelpers.com
- Pat Goldstein, Realtor for West TN andNorth Mississippi (901) 606-2000 “TheGold Standard in Real Estate”
- LeahAnne Morse, owner of All Things New (organizing and help with downsizing andestate sales) www.allthingsnewWTN.com
Transitional Music: “God Bless The USA” by Lee Greenwood;“America-Why I Love Her” by John Wayne; “Home” by Roger Miller; “Memphis” by Johnny Rivers for the Look BackMemphis Trivia Contest
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ABOUT TOM KING, REAL ESTATE APPRAISER
Tomis a well- respected and sought after appraiser in Memphis, Tennessee. Heis a second generation appraiser with 40 years of experience. He hasbeen elected to the Memphis Area Association of Realtors Board of Directorsthree times.
Tom is a certified residentialappraiser in Tennessee. He have appraised over 20,000 homes in hiscareer. A graduate from the University of Tennessee with a degree in realestate, Tom is also a Certified Relocation Professional (CRP). Tom alsohas vast experience in dealing appraising real estate for pre-listing sales,cash buyers, divorce settlements, estate settlements. (901) 487-6989
ABOUT JOGARNER-MORTGAGE LOAN OFFICER:
WHAT DO YOU WANT TO ACCOMPLISHWITH YOUR MORTGAGE?
www.TNRDHomeLoans.com (901) 482 0354 This email address is being protected from spambots. You need JavaScript enabled to view it. twitter @jogarner NMLS# 757308 (currently working with SierraPacific Mortgage, Inc)
“Whatever YOUR personal priorities are, my job is to help youget the mortgage terms that will give you bragging rights when you talk aboutit and help you score on hitting yourgoals .”
As a mortgage loanofficer, 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 youfind 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 needto get the house you want to buy or refinance?
Different clients have different priorities inlife—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 along term goal of buying properties to build rental income.”
TNRDHomeLoans is a mortgage officer with extensive knowledge in tailoring mortgages toher customers who are refinancing or purchasing homes all over thecountry. 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 torefinance, how to get the best deal on your home purchase financing.
McKenzie Mortgage RD Loans has been inthe real estate/financing business for over 25 years. She got her startin Portland, Maine where she first began her real estate career. She receivedher real estate education from the University of Southern Maine and waspersonally mentored in San Diego, California by Robert G. Allen, authorof Nothing Down,Creating Wealth andThe Challenge.
On moving back to West Tennessee in 1987, she went intobusiness buying and selling discounted owner-financed notes secured on realestate. In 1990 Jo went to work for a residential mortgage company andhas been a mortgage loan officer for over 25 years. Her goal is to offerexcellent, affordable service to her customers, tailoring theloan programs to the specific needs of her clients.
In addition to her work in the mortgagefield, McKenzie Mortgage RD Loans is the primary sponsor and founderof Talk Shoppe in Memphis. www.TalkShoppe.com TNRDHomeLoans also host the radio show Real Estate Mortgage Shoppe airing on NewsRadio AM 600 WREC and iHeart Radio with podcasts and show notes published on www.TNRDHomeLoans.com
