Two Ways to Keep Your Family Secure With the Right Mortgage

Written by Posted On Monday, 16 August 2021 00:00

“Financial independence is the ability to live from the income of your own personal resources.” Jim Rohn

It’s a secure feeling, owning your own home with an affordable payment so you and your family can enjoy living life together.  It’s a feeling of satisfaction knowing that as the value on your home goes up, and the balance on the mortgage gradually gets paid down, you are building wealth for yourself and those you love. 

1. Know your comfort level for a payment and down payment. 

Experts on podcasts and financial posts suggest keeping your total house payment under 33% of your gross income.   They recommend keeping your total house payment and payments on other debt no more than 43% of your gross income.   Keep enough savings in the emergency fund to get your family through an emergency.  Don’t rely on the mortgage loan officer to tell you what you can afford.  Mortgage software often approves borrowers for up to 50% or more for their total income-to-debt ratio. How can you enjoy life if you are tied down with over 50% debt?

2. Create multiple profitable exit strategies.   

Susan was trying to decide to rent or buy a home.  “I don’t feel like I can afford a mortgage. What if I want to move?”  Susan put together a team consisting of a reputable realtor, a lender, and her financial advisor.  Susan’s realtor found her a home in a neighborhood with a long-term track record of going up in value. Rents were going up too.  The FHA mortgage that Susan was getting had a qualifying assumable clause in it.  

Susan felt more secure and comfortable with her decision to buy a home instead of renting. If the market was not good for selling a home when she was ready to sell, she could always rent the house to tenants and make a profit.  A future buyer might pay her a large chunk of money one day to qualify with the mortgage company for assuming the payments on a lower interest rate loan. 

Looking at the real estate market today

The lack of homes for sale, lots of money floating around the country, and Millennials nearing their peak homebuying years, are all stoking the housing boom. As a result, home prices continue to rise, construction costs are higher, and investors are grabbing up starter homes for rentals. 

How long will the real estate boom market last?

Emerging groups of future home buyers look like they will keep the housing demand high for many years. However, the Federal Reserve is watching the employment reports, inflation, and the pandemic situation. The Fed will decide if they will taper off buying mortgage-backed securities later this fall.  If they pull back their buying, mortgage rates are predicted to go up. 

Real estate has historically been an excellent hedge against inflation.   Locking into a low fixed mortgage rate can add a layer of financial security.  Renters’ pocketbooks are squeezed as rents move up over time.   With a fixed-rate mortgage, the principal and interest payment stay the same, giving the homeowner more discretionary funds as his income goes up. 

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Jo Garner

“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  

www.JoGarner.com

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