HIGHLIGHTS FROM OUR PODCAST:

MARKET NEWS

LOOK BACK MEMPHIS TRIVIA CONTEST

QUESTIONS ANSWERED BY AMOS MACKEY:

1. Year-end home sales slightly down for 2014. A steep drop in foreclose sales led to an overall

drop in sales. –what story do you read BEHIND the numbers?

2. Memphis residential market, how it fared in 2014 and what we can expect in 2015.

3. Biggest commercial project in Memphis –Bass Pro and what Bass Pro brings to Memphis, TN.

4. What got you started in your journalism career and what has kept you in it?

5. How can real estate professionals and other business people best use the

Memphis Daily News as a tool?

QUESTIONS ANSWERED BY TOM KING:

1. Talks with Amos Maki about Bass Pro and the Cross Town Building and what it

brings to Memphis.

2. Talks about what is happening with the backlog of FHA appraisal orders due to FHA

lowering monthly mortgage insurance premium starting Monday January 26th, 2015.

QUESTIONS ANSWERED BY JO GARNER:

1. Is there a rule-of-thumb for determining if it is profitable to refinance your house?

2. What is the rule-of-thumb making the decision regarding Rent vs Buy?

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4th segment REAL ESTATE TIP OF THE WEEK:

ANNOUNCEMENTS

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Good morning, Memphis! Good morning across the country on iHeart Radio and the BOCI

channel. You’re on the Real Estate Mortgage Shoppe and I’m your host, Jo Garner, Mortgage

Officer with Evolve Bank and Trust. Today’s program is sponsored by Alliance Title and Escrow.

Joe Rojas over there has been doing a great job for MY clients. If you need someone to close

a refinance or purchase mortgage for you, give Joe Rojas a call at (901) 333-7999. What’s

going on right now with YOUR real estate property and where are you on your mortgage terms?

Call us on the air and let’s talk about YOUR real estate scenario. (901) 535-WREC (901) 535-

9732. Today our general topic is “Memphis Real Estate in 2015” and we have a real

estate expert around the coffee table with us—Amos Maki of the Memphis Daily News. Amos

Maki, tell us a little bit about yourself and what you cover at the Memphis Daily News. <Amos

Maki of the Memphis Daily News >

(Jo) Tom King, appraiser with Bill King and Company is also sitting around the table with us.

Tom, I’m convinced everyone in town knows you, but please take a moment to introduce

yourself and talk a little bit about what you do. <Tom King >

(Jo) Mortgage rates continue to defy logic this week—remaining at 19-20 month lows. The 30 yr

fixed rate on conventional mortgages coming in around 3.625 with no points on the best

scenario . The 15 and 10 yr mortgages are very close to 2.875% to 3%. You can get rates lower

than that if you want to pay a little extra. The European version of Quantitative Easing is what

is driving our bond markets in the US—sending mortgage rates down. If the refinance scenario

you considered last year or the year before didn’t work then—TRY AGAIN. You might be

pleasantly surprised. Not only have the rates dropped down to an almost-2 year low, but the

government FHA mortgage program just dropped it’s monthly mortgage insurance amount

significantly. If you or someone you know looked at refinancing your home or BUYING one last

year or the year before and you weren’t QUITE comfortable with the payment—call me and my

very experienced assistant, Susan Belew. We can put together some financing scenarios for

you to compare . Just call us on the air at (901) 535-WREC (901) 535-9732. Or you can reach

me directly OFF the air at (901) 482-0354 on catch me on the blog www.192.232.195.219

<Amos Maki and Tom make some short comments>

(Jo) Winners in the real estate and mortgage market this week are homeowners who can

refinance and free up a $100 or several hundred dollars per month on the house note. Some

clients tell me their main goal is to free up funds per month by lowering their interest rate and

payment. Others what to lower the rate AND shorten the term. Those people are the ones

who can save TENS of thousands of dollars over the course of time by eliminating the extra

principle and interest payment.

Yesterday I talked with a client who wanted to go from a 30 year mortgage to a 20 year loan.

They planned to stay in their home for a long while. He owed around $225,000 and had an

interest rate of 4.875% with about 28 years left to pay on the mortgage. By going down to a 20

yr term with a rate of 3.625% no points , he would save about $114,000 over the next 20 years

just by eliminating 8 years from his mortgage. He would pay $160 more per month but saving

$114,000 over the twenty years made it worth it by more than $300 per month.

If he had wanted to lower his payment, we could have tacked back on the 2 years and dropped

the rate to 3.75% to just lower his note. But the real savings for someone who plans to keep

their house, is to lower the rate and shorten the term.

Other winners in the market right now are those of you out BUYING houses and locking in these

low, fixed rate mortgages. Especially renters who can buy a bigger house with more amenities

and have a payment about a third less than what they would pay in rent on the same place.

First-time homebuyers don’t always have a lot of money down. And that’s ok. There are plenty

of down payment assistance programs we can pull out and use like Tennessee Housing

Development Agency, Shelby County Down Payment Assistance program and assistance

programs in other states. The 100% USDA loan is great too for people who meet the criteria

and if the property is eligible for the program because it is a 100% financed loan, allowing you

to leave money in your emergency fund. The veteran loan is a 100% loan too. Call my directly

if you want to talk about what YOU need for your financing. (901) 482-0354 (901) 482-0354

www.192.232.195.219

<Tom or Amos Maki make comments>

(Jo) Amos, what do YOU see going on with the real estate market in Memphis right now?

<Amos Maki launches his topic>

 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 SPONSOR is Lawhon Landscape. The Lawhons

can help you start planning for spring with a plan for your landscaping and grounds or they can

give your lawn and garden a spring cleanup. Get a free consultation. 901-754-7474.

Www.lawhonlandscapedesign.com

 The Lawhons of Lawhon Landscaping are giving away a $25 gift card to the

first person who calls with the correct answer to our Trivia question. If you

know the correct answer to your trivia contest, call us on the air at (901)

535 WREC. (901) 535 9732.

Garner # 39 01/22/15

TRIVIA QUESTION WHO AM I?

 Pressbox Lofts (Former Toof Building, 195 Madison Avenue, 334-1849)

 Question: In 1912, I was constructed for the (now) oldest printing company (Toof Printing

Company) in Memphis. What is my new name?

 Hint: I will be open on Madison Avenue in Downtown for apartments this year.

 Hint: I was placed on the National Register of Historic Places in 1982.

 Hint: In 2000, I was integrated into the design of AutoZone Park.

 Final Hint: “A Note For Hope” is a large mural on my west side.

 Answer: Pressbox Lofts. In 1912, the S.C. Toof & Company Printers began construction on a

headquarters building in the architectural style of the Chicago School. With an emphasis on function over

ornament, the building was made to last with steel-frame construction under masonry cladding. And last it

did— in 1982 the building was placed on the National Register of Historic Places. In the new millennium, the

building was integrated into designs for AutoZone, a state-of-the-art stadium reminiscent of classic American

city ball fields.

 In 2014, renovation began on the 65,000sf building, converting the long empty building into 50 units of loft

apartments, ranging from 680sf to 1290sf, in seventeen different floor plans; and ground level retail space.

Other features of living in Pressbox Lofts include the obvious like proximity to the Memphis Redbirds

baseball games, as well as walking distance to all other Downtown and Riverfront venues and events, and

the Madison Trolley Line. Add the full-service Coffee Shop and Roof Deck to parking garage, being pet-

friendly and on-site storage facilities.

 Jimmy Ogle gives free walking tours in Downtown Memphis during the Spring and Autumn, with

the Spring, 2015 tours beginning Sunday, March 15 (Bridge Walk) and April 7 (Union Avenue

Manhole Cover & History Tour). Go to jimmyogle.com for the 2015 Spring season schedule

and locations.

Shelby County Courthouse: Third Thursday each month at 12:00 noon – next is Thursday,

February 19 and March 19.

____________________________________________________________________________________

QUESTIONS ANSWERED BY AMOS MAKI:

3. year-end home sales data for 2014. A steep drop in foreclose sales led to an overall drop in

sales.

4. We can cover the residential market, how it fared in 2014 and what we can expect in 2015.

5. We can also talk about CRE, industrial, office, retail and multifamily. Retail was particularly

strong, with a lot of grocery store activity. Biggest commercial project in Memphis –Bass Pro

and what Bass Pro brings to Memphis, TN.

6. What got you started in your journalism career and what has kept you in it?

7. What are one or two of your most memorable stories you have covered?

8. How can real estate professionals and other business people best use the

Memphis Daily News as a tool?

QUESTIONS ANSWERED BY TOM KING:

1. Talks with Amos Maki about Bass Pro and the Cross Town Building and what it

brings to Memphis.

2. Talks about what is happening with the backlog of FHA appraisal orders due to FHA

lowering monthly mortgage insurance premium starting Monday January 26th, 2015.

QUESTIONS ANSWERED BY JO GARNER:

1. . Is there a rule-of-thumb for determining if it is profitable to refinance your house?

Yes. One very key factor in determining if a refinance would be profitable for you is to

answer the question “How long am I going to keep this house?” If the answer is that

you plan to keep the house for 5 years or more, then a good rule of thumb is to save

enough money either on a lower payment or a shorter term that would allow you to

recapture the amount you paid in closing costs within 2 years or less. You need to save

enough money on the refinance transaction that in 2 years or less, you will have offset

the amount you paid in closing costs. That is what I call a good “home financing design.”

Example: Let’s say you owe $200,000 and when you originated this loan about 5 years

ago, you got a fixed rate of 5.5%. That means your principal and interest payment is

$1,136 plus taxes and homeowners insurance and maybe some mortgage insurance.

So we know today you are paying $1,136 per month for principal and interest. Now you

can lock a mortgage rate of 4% or less on another 30 yr term and your closing costs are

about $2,614 with an appraisal fee included. Your new principal and interest payment

on 4% will be $955/mo . Your savings per month is about $181/mo . Divide your closing

cost amount of $2,614 by the amount you are saving per month and you will recapture

your closing cost in 14.5 months. Not a bad design.

If you want to make one extra payment per year, you can knock off about 8 years from

the loan term if you will make the extra payment every year.

If you want to shorten your term to 15 years and get a rate of 3.5% or less, you would

calculate the number of payments eliminated by shortening term. Let’s use the $200K

again. Your 15 year principal and interest payment per month would be about $1,429

which is about $294/mo more than what you are paying now.

However, you are eliminating 10 years of principal and interest payments . $1,135/mo

times 120 months or 10 years is a savings of about $136,200 in total payments. Is it

worth it to spend $2,614 for closing costs to save $136,200. But if you are not going to

be in the house very long, you may just want to make extra payments at the rate you

currently have if you cannot stay long enough in the house to get your closing cost

investment out.

2. What is the rule-of-thumb making the decision regarding Rent vs Buy?

______________________________________________________________________

4th segment REAL ESTATE TIP OF THE WEEK:

Jo’s announcements:

Thank you to Joe Rojas at Alliance Title will take good care of you at closing. Let

him talk to you about YOURS 901 333-7999

Congratulations to our mortgage manager, Chad Irwin of Evolve Bank & Trust,

and other lenders who were installed this past week to take the leadership of

Memphis Mortgage Bankers Association. Looking forward to a great year!

Talk Shoppe offers free education and networking to anyone interested in real estate or in business.

Coming up Wednesday January 28th, 2015, we will be presenting the “Mastermind Principle: based on

the book Think and Grow Rich by Napoleon Hill.” Talk Shoppe events are free at the YMCA NUBER

CENTER 5885 Quince Rd Memphis (across from Lichterman Nature Center) 9A to 10A Wednesday. For

more information go to www.TalkShoppe.com

To hear today’s podcast of the Real Estate Mortgage Shoppe and others, go to

www.JoGarner.com

Looking for a great place to work out and get back in shape? Check with the YMCA

on how to become a member. Special sign up deals running through January 2015

Go to www.ymcamemphis.org. Memphis by Johnny Rivers for the Trivia Contest

Transitional Music: 9:15 AM   “Memphis In The Meantime”  by John Hiatt and the Goners  Released in

1987; 9:30 AM “The Memphis Train” Rufus Thomas Stax Records 1968; 9:45 AM “Nutbush City Limits”

Tina Turner (Het was de laatste succesvolle single die Ike & Tina Turner afleverden. Er verschenen nog wel enkele singles maar die

haalden de hitparades niet of nauwelijks. Nutbush City Limits werd geschreven door Tina Turner met in haar gedachten haar geboortedorp

Nutbush, Tennessee. Nutbush zelf heeft als gemeentevrij gebied geen “gemeentegrenzen”, maar inwoners van het dorp hebben wel enige

zeggenschap. Eerde Tina Turner haar geboortedorp, andersom eerde haar geboortedorp haar door een deel van de Tennessee State Route 19

naar haar te vernoemen…)

“Memphis” by Johnny Rivers for the Look Back Memphis Trivia Contest

______________________________________________________________________________

ABOUT AMOS MAKI, THE MEMPHIS DAILY NEWS:

Amos Maki has covered business and government in Memphis since 2003. A native Memphian, Maki

currently covers real estate and economic development for The Memphis Daily News.

@memphisdaily www.MemphisDailyNews.com

ABOUT TOM KING, REAL ESTATE APPRAISER WITH BILL KING CO. (901) 487-6989

___________________________________________________________________

ABOUT JO GARNER, MORTGAGE OFFICER AND CONSULTANT,

EVOLVE BANK & TRUST: (901) 482-0354 www.JoGarner.com @JoGarner

jo@192.232.195.219

Jo Garner’s Bio

www.JoGarner.com (901) 482 0354 jo@192.232.195.219 @jogarner

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 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.