Archive for the ‘Mortgage Loans Blog’ Category
Coordinating Your Real Estate Investment Strategy
Coordinating Your Real Estate Investment Strategy
Real Estate Mortgage Shoppe
2/4/12
Jo Garner, Mortgage Officer (901) 482-0354
On this podcast we are talking with Richard Scarbrough buyer and broker with First National Realty and Kevin Perk of Kevron Properties and blogger on smarterlandlording.com. Jo Garner, Mortgage Officer with Evolve Bank & Trust discusses financing strategies for buying investment real estate. Read the rest of this entry »
How To Make Money Buying & Lending On Real Estate With Private Financing
“How To Make Money Buying Real Estate Using Private Lending;
Making Money LENDING Private Money”
January 28, 2012
Jo Garner’s Real Estate Mortgage Shoppe program on January 28th, 2012 covered topics about mortgage loan programs for refinance and home purchases using traditional financial program and also private lending programs. Jeremy Veldman and Alex Craig with Memphis Turn-Key Properties talked about “How To Make Money Buying Real Estate Using Private Lending; Making Money LENDING Private Money.” Click on the link to the podcast for the audio of this program.
And now for the small print: “The content of this program is intended for educational and informational purposes only.
Please consult with your attorney or licensed financial advisor regarding potential legal and financial implications to you.”
Now for the top real estate news this week.
Our phones are ringing with people wanting to know when does the new government HARP 2 program get fully released. The big date for the new automated underwriting system supporting HARP is projected to be released on March 17. This is great for homebuyers whose values have dropped. There will be an appraisal on this program but no loan-to-value limit. If you know anyone who has told you they need to refinance but their value has dropped and they don’t think they can, please let my very capable assistant Susan Belew and I talk with them. We may be able to offer them a solution. Call us right now on our business line (901) 482 0354 Susan is standing by to talk with you. That number for our business line is (901) 482 0354
A new national refinancing program unveiled by President Obama earlier in the week will rely on the Federal Housing Administration to refinance private and GSE mortgages, according to a report from Federal Financial Analytics in Washington. To get it off the ground, Congress must remove the 97% loan-to-value cap on FHA loans and approve a tax on banks to cover losses to the FHA mortgage insurance fund. Obama has been talking about this new program but for now it is only in the talking phase.
Moving on to the news on the Guarantee fee or G-fees that is the 10 basis points charged on every Fannie Mae or Freddie Mac loan closed from April 1 2012 onward. Some lenders are already charging these G-fees ahead of the effective date. The 1—basis point fee equals about $200 on a $200K loan . It equal about $100 for a $100K loan. Why do we have a G-fee now added to our mortgages for the next 10 years? Get this—to pay for just a 2 month payroll tax holiday. Now they are talking about raising it again to cover a 10-month payroll tax holiday. This is raising the costs of borrowing on mortgages but the G-fees are not helping solidify Fannie or Freddie’s capital reserves at all.
Rates this week should still be at about 3.875% to 4.25% on the 30 yr but we are seeing more and more investors raising their rates partly to cover the extra G-fees but mostly because their loan pipelines are full and they are raising their interest rates to try and keep the volume manageable.
Word to the wise: Jump off the fence and get your refinance loan or purchase mortgage done now before the cost of borrowing and more stringent regulations prohibit you from having the opportunity.
And with record low mortgage rates, decreasing home prices and relatively mild weather throughout the country, many states are experiencing home sale increases this winter compared to previous years.
Jeremy and Alex, I have heard about your company and what you do for real estate buyers and lenders. Since it IS private money, it IS very intriguing. What got you into this business? Why is there a need for private lenders?
Hear answers to the questions below by clicking the link to the 1-28-12 radio show:
Jo_and_Mphs_Turn_Key_1-28-2012_1327960702_22390 http://www.600wrec.com/player/?station=WREC-AM&program_name=podcast&program_id=jogarner.xml&mid=21774482
1. Why is there a need for private lenders?
2. Why would someone want to become a private lender? What’s in it for them?
3. Can you tell me a little bit more about how the process works and what programs you have available?
Questions covered by Jo Garner :
1. Is owner financing allowed behind FHA and Conventional loans? Not usually The CLTV max would be no more than the maximum LTV on a transaction. No prepayment penalties, fixed rate. Most 2nds on FHA loans are provided by city, county or state government down payment assistance programs. On conventional 2nd position loans are usually provided by HELOCs or bank piggy back loans up to 90% CLTV.
2. What kind of scenarios do you see come across your desk where private financing might be a better option rather than traditional financing?Some are where the house is in such bad shape and the seller owns it free and clear and can finance the property. If the seller is not in a position to finance, then the FHA 203K is usually a great loan that will allow the homebuyer to borrow both the price of the house and some of the repairs.
Real Estate Tip of the Week Don’t fall prey.
Fraudsters are targeting distressed homeowners with “deals” that can sound perfectly legit. Some offer loan modifications for upfront fees while others offer fee-based “help” in navigating government housing assistance programs, sometimes claiming they’re attorneys.
There are also con-artist “investors” compelling desperate owners to sign over their homes with quitclaim deeds in return for a typically empty promise to remain there indefinitely. Others are telling former owners they can get their homes back for a lump sum. Be forewarned: Never sign blank documents or documents with blank lines.
If you’re unsure of an offer, have an attorney or other trusted adviser look it over. Keep in mind that a law barring firms — except attorneys — from charging upfront fees for mortgage relief or mortgage modification took effect in 2011. It’s called the Mortgage Assistance Relief Services Rule.
Also featuring the original song “Bail Me Out” by
Pam and Terry at www.pamandterry.com
Jo Garner, Mortgage Officer Evolve Bank & Trust (901) 482-0354 www.MoneyShoppe.NET and www.MortgageLoansBlog.com
The Real Estate Mortgage Shoppe radio show has a mission to inspire and inform the public about relevant topics concerning real estate and real estate financing. Our purpose is to help homeowners achieve their goals in an economical and satisfactory manner.
Keep Your Lifestyle: How To Make Your House Pay YOU
Real Estate Mortgage Shoppe 1-21-12Real Estate and Mortgage Industry Updates 1-20-12
Our topic today is “Keep Your Lifestyle: How To Make Your House Pay YOU!”
Here are the industry updates taken from the radio show scripts.
Below is the link to the full podcast of the 1-21-12 radio show:
http://www.600wrec.com/cc-common/podcast/single_page.html?more_page=1&podcast=jogarner&selected_podcast=Jo_and_Ken_Bolie_Aaron_McD
There is so much in real estate and mortgage news this week….what do we talk about? What do we leave out?
Okay, well since we’ve had numerous calls about the mortgage rates, why don’t we start there? We saw a weakening market this week which caused rates to bump up just a hair but they are still at neutral buoyancy around 3.875% to 4.25% for the fixed rate 30 yr and 3.125% to 3.5% fixed for the 15 year. The 5-1 ARM is a great deal for a few folks in the low 3’s .
Word to the Wise: If the rate and terms you are being quoted today give you something to brag about, lock it to today. Better to commit on a low rate today and have some bragging rights and be a little disappointed when the rates go lower, than to NOT lock the rate and be angry & frustrated when the rates jump higher. Read the rest of this entry »
Getting Started in Real Estate Investing
Listen to the show “Getting Started In Real Estate–Your Real Estate Journey”REAL ESTATE MORTGAGE SHOPPE
ON NEWS RADIO AM 600
9A-10A Saturdays
January 7, 2012 show
The topic for the Real Estate Mortgage Shoppe program on January 7, 2012 is “How To Get Started In Real Estate—Your Real Estate Journey with Jo Garner, Mortgage Officer with Evolve Bank and Trust and co-hosts Richard Scarbrough, buyer and broker for First National Realty and Kevin Perk, investor with Kevron Properties and www.smarterlandlording.com
The Real Estate Mortgage Shoppe radio show airs every Saturday 9A to 10A CST on News Radio AM 600 in Memphis, TN. You can also listen live online at http://tunein.com/radio/WREC-600-s22371/
The Real Estate Mortgage Shoppe radio show covers a variety of topics including the latest mortgage news and rates and how it affects the homeowner or aspiring homeowners. Also covered on the show is helpful information about niche real estate mortgage products like the FHA 203K renovation and repair loan, the 100% VA loan, the 100% Rural Housing loan, Down Payment Assistance programs, Conventional combination loans, the My Community Mortgage and refinancing products.
The Real Estate Mortgage Shoppe radio show is led by Jo Garner with Evolve Bank & Trust, a mortgage officer with over 20 years experience and a passion for listening and helping her customers accomplish what they set out to do with the right mortgage product. Jo Garner, Mortgage Officer Evolve Bank & Trust (901) 482-0354 www.MoneyShoppe.NET and www.MortgageLoansBlog.com
In the real estate news this week, Jo Garner shared the highlights.
There sure is a lot going on for a short first week of 2012. . For starters, the Fed sent Congress a little missive on how to fix the housing and mortgage market. The large inventory of foreclosed properties owned by the bank, is keeping the house prices low and keeping households poor. The rent rates on houses are rising as more people leave homeownership and shift to renting. Here’s some ideas the Fed shared with the White House. They said “Try
#1.Creating a bank-owned property to transition from a home-to-rental program that relies on sales to third-party investors. This could work by(a) structuring competitive auctions; (b) making a more attractive deal to investors, or (c) providing investors with the debt financing.
2. Remove some of the obstacles preventing creditworthy borrowers from accessing mortgage credit.
3. Step up efforts to aggressively pursue loan modifications and work out plans for homeowners in money trouble instead of dumping larger numbers of foreclosures on the market
Other big news that will affect homeowners purchasing a home with a mortgage or refinancing one. Tongues are wagging and speculating about the Fannie & Freddie guarantee fee increase adding 10 basis points for each loan closed. Fannie Mae and Freddie Mac will increase their guarantee fee on all residential loans being pooled by 10basis points on April’s Fool’s Day. Many experts believe that this increase should start to reflect on mortgage applications in February, if not sooner. What that means to you, the homeowner, is that if you close on a mortgage for $200,000, you are going to pay over $200 more for cost at closing. If you were borrowing $100,000, you will be paying over $100 more in costs.
Rates are curiously still at their low mark. The 30 yr mortgage rate is around 3.875% to 4.25%. The 15 yr rates are running in the low 3’s to mid 3’s.
My assistant, Susan Belew, and I have a list of customers who are waiting on the new HARP 2 mortgage refinance program to fully roll out. This is the new government program to help homeowners who are making their house payments on time but who owe more than the value of their house. This program has some restrictions. –one of them is that the loan must be backed by Fannie Mae or Freddie Mac. Lenders are waiting for Fannie Mae and Freddie Mac to update their computerized underwriting systems with the new guidelines. The updates are expected in March.
If you want to take advantage of the extra low mortgage rates available, my very capable assistant, Susan Belew and I would like to review your mortgage terms to see if we can save you some money, call us at 901 482-0354. Susan is standing by our phone right now.
The Real Estate Mortgage Shoppe radio show has a mission to inspire and inform the public about relevant topics concerning real estate and real estate financing. Our purpose is to help homeowners achieve their goals in an economical and satisfactory manner.
This radio show covers answers to the questions on rent vs. buy, when does it make sense to refinance my loan, and more. Every week listeners get tips from the Real Estate Tip Of The Week and tips from the host and co-hosts of the program.
By clicking and listening to the podcast below you can catch some of the profitable ideas Richard Scarbrough and Kevin Perk offer to real estate investors starting out.
If you are planning a mortgage loan refinance and mortgage loan for purchase financing of real estate in the Memphis area and across the country, contact Jo Garner at Evolve Bank and Trust (901) 482 0354.
Real Estate Mortgage Shoppe -Start Investing In Real Estate
REAL ESTATE MORTGAGE SHOPPE
ON NEWS RADIO AM 600
9A-10A Saturdays
The news for mortgage loans and credit on home loans this first week of 2012 is hot from Jo Garner, Mortgage Loan Officer with Evolve Bank & Trust in the Memphis, TN area. On the radio show today we discussed the Federal Reserve’s missive to the White House on how to fix the real estate and mortgage market. We talked about the new government imposed Guarantee Fee added to each Fannie and Freddie mortgage loan closing. And we gave updates on the phased roll-out of the government HARP 2.0 refinance program for borrowers underwater.
The main topic of the radio program was “How To Get Started Investing—Your Real Estate Journey.” The co-hosts were experts Richard Scarbrough, buyer and broker from First National Realty and Kevin Perk, owner of Kevron Properties and www.smarterlandlording.com
MORTGAGE LOAN REFINANCE RELIEF FOR UNDERWATER HOMEOWNERS
The mortgage loan business in Memphis and every city around the nation is about to go into high gear with record numbers of mortgage loan refinances.
The government on Monday October 24, 2011 announced a federal loan program that will make it easier for struggling homeowners to refinance to today’s near-record low rates. The revised Home Affordable Refinance Program will not require an appraisal. The final guidelines for this program will be released on November 15, 2011 and the program goes into effect December 1, 2011.
Homeowners who refinance into 30-year mortgages will pay some fees even though the costs on the new HARP program will be lower than the current risk-based fees. For borrowers who refinance into shorter term mortgages of 20 years or less, all risk-based originations fees will be waived.
Here are some of the stipulations:
(1) The mortgage being refinanced under the new HARP program must be owned by Fannie Mae or Freddie Mac.
(2) The mortgage must have been sold to Fannie Mae or Freddie Mac BEFORE May 31, 2009.
(3) The mortgage must not have been refinanced within the last 2.5 years.
(4) The homeowner must be current on the payments with no more than one payment over 30 days late in the last 6 months and no more than 2 payments over 30 days late in the last 12 months.
Jo Garner and Susan Belew and their team are gearing up to help their customers get ahead of the herd by getting the customers’ loan applications completed BEFORE November 15, 2011 when the regulations will be released. Once the mortgage team determines that the homeowner is qualified for the loan under the final loan regulations, then the customer can lock in terms and begin the process to closing.
Jo Garner, Mortgage Officer (901) 482-0354 jgarner@getevolved.com www.MoneyShoppe.NET www.mortgageloansblog.com
For more information about mortgage loan refinances in the Memphis area and around the nation, contact Jo Garner.
Getting The Loan Closed Using Hard Money Lenders
Terry Kerr, a successful real estate investor and rehabber from the Memphis area, got a call from someone ready to sell a multi-unit property at a cut rate price. The deal was too good to let go, but Terry had a big problem. He and his family were going out of state the next day on a much needed week-long vacation. In order to grab this deal Terry had to arrive at the closing table with cash the day after he returned from vacation.
A good number of people would resign themselves to kissing this sweet deal good-bye. But Terry had a plan. He punched in the telephone number for his private lender. It didn’t take long for Terry to give his private lender the details of the deal, the value, the cost to repair and the projected profit once the property was completely rehabbed.
The private lender did a quick check on the value of the property and the estimated repairs to be done. She had already done a credit and background check on Terry from previous transactions. Her last words to Terry before he left town went something like this, “Go have a great time on your vacation, Terry. I’ll have the money ready for your closing when you return.” These quick money lenders are sometimes pictured as sinister hoodlums lurking in dark alleys waiting to break borrower’s kneecaps when they can’t repay. However, professional hard money lenders are NOT the Mob, but they are not Mama either. Interest rates can go well into the double digits with upfront points depending on the risk factors.
Generally the hard money loan is a temporary loan until the borrower can secure permanent financing or other method of payoff. The main difference between a professional hard money lender like Terry Kerr’s lender and the unscrupulous predatory lender is the design of the loan terms and the type of borrower. The unscrupulous lender structures the loan so that borrowers inevitably fail and the lender/predator can take the house in foreclosure.
On the other hand, the professional hard money lender structures reasonable terms because he wants his money and fees—not the borrower’s house.
There are probably as many different hard money lending loan terms as there are hard money transactions. Terry Kerr’s private loan structure looked something like this:
Sales price on “AS IS” multi-unit: under $ 20,000
Cost to repair property: $ 50,000
Value of property “AS IS” approximately $108,000
Hard Money Loan 65% LTV: $ 70,000
Points paid by Terry to his private lender at time of payoff: $ 7,200 (plus interest paid monthly)
Term of hard money loan: 6 months
Terry’s PROFIT at the end of the deal: !!!!!$ 60,000 !!!!!
Terry Kerr shares his knowledge and experience regularly at the Memphis Investors Group meetings. He shared in a recent interview, “I have done 35 real estate investment deals this year and plan to do 50 next year.” (quoted in 2005)
Hard money lenders fill a niche in mortgage lending, helping consumers who have specialized needs. They can be found all over the United States and the world. .
Memphis Investors Group www.memphisinvestors.com
HomeVestors (Don & Holly Swogger) www.pleaseclose.com/Holldongroup
J. Garner, Mortgage Officer
Evolve Bank & Trust
www.MoneyShoppe.NET
How Do I Get My Mortgage Approved: Fannie Mae’s Desktop Underwriting System
Wouldn’t you agree that it is easier to win at a game when you know the rules? Once you know the rules, you can plan your offensive and defensive strategies to get to the goal faster. A mortgage originator’s game plan takes him to the goal of getting loans approved quicker and with the least amount of resistance. Read the rest of this entry »
Real Estate and Mortgage Financing Updates for Purchase or Refinance 2-19-11
From Jo Garner, Mortgage Loan Officer (901) 482-0354 www.MoneyShoppe.NET
(1) www.cnn.com Mortgage-backed securities are back, but Moody’s, Standard & Poor’s, and Fitch are approaching their job rating them with very different tactics. More
(2) www.cnn.com Mortgage bankers says borrowers with at least one payment past due down to the lowest level since 2008. More
(3) www.cnn.com The Obama administration on Friday officially unveiled its plan to remake the mortgage market and reduce the government’s role in housing finance by winding down Fannie Mae and Freddie Mac. The highly anticipated “white paper” outlines steps the administration says will help draw private capital back into the mortgage market, curb unfair lending practices and make federal support for borrowers more targeted.
(Send in your comments and suggestions to www.mortgageloansblog on the topic of Phasing out Fannie Mae and Freddie Mac. )
(4) www.bankrate.com Mortgages fall back after previous gain. Mortgage interest rates backed off a bit this week in the aftermath of a steep run-up that began a month ago and had continued through the week before. Rates remained higher, but “improved somewhat” compared with a week ago, says Jim Sahnger, a mortgage consultant at FBC Mortgage in Jupiter, Fla. The benchmark 30-year fixed-rate mortgage fell 7 basis points this week, to 5.16 percent. The benchmark 15-year fixed-rate mortgage fell 5 basis points, to 4.43 percent. The benchmark 5/1 adjustable-rate mortgage swam upstream, rising 4 basis points, to 4.05 percent. The benchmark 30-year jumbo fell 1 basis point, to 5.73 percent.
Where do YOU see mortgage rates heading and what information leads you to believe the trend? Comment on www.mortgageloansblog.com
(5) www.mortgagebankers.com Quote from MBA: “We are gratified to see that one of the concepts they articulate closely tracks MBA’s proposal, released eighteen months ago, that visualizes a workable, commonsense system driven by private capital. Our proposal envisions an explicit, but limited, government guarantee of lower-risk mortgage-backed securities. The guarantee would be paid for by fees used to build a fund to protect taxpayers. We continue to believe that this is the most prudent approach, one that places the primary risk on private investors and ensures sufficient liquidity during times of economic stress in order to provide affordable mortgage finance in all types of mortgage markets. Our proposal directly addresses the problems that caused the failure of the Fannie Mae/Freddie Mac system.”
What are some specific concerns you have with the eventual change in mortgage secondary marketing? What do you see good or bad about these changes. Comment on www.mortgageloansblog.com
Tennessee Housing Development Agency Rate Change 2-14-11
Rate change on THDA loans for submissions on or after 2-14-11. Great Rate 4.75%; Great Advantage 5.05%; Great Start 5.35% www.thda.org Low Rates and/or Down Payment Assistance for Tennessee
