Dena Helms, Real Estate Broker

This Week within The Lakeway Area Multiple Listing Service, 39 propetries sold. 28 Residential Homes, 9 Single Family Building Lots or plots of land, 1 Commercial Property, 1 Multifamily Property.

1. 28 Residential Homes with Selling Prices ranging from $9,000 to $285,000

2. 9 Plots of land rangin from $13,000 to $40,000

3. 1 Commercial Property at $48,500

4. 1 Multifamily Unit for $134,900

The time frame is for this report is from August 2nd Through August 8, 2010 and reflects only properies reported by the Lakeway Area Association of Realtors. This report Brought to you by Dena Helms, Real Estate Broker, Re/Max Real Estate Ten, Inc. 525 West Morris Blvd, Morristown TN 37813. 423-581-8881 423-312-1247 www.openhousewithdena.com

Amy Shrader from Lender's Title & Escrow, LLC was my Special Guest on Open house with Dena this past Saturday, and she shared her perspective on the usefulness of title insurance in a time of so many short sales and foreclosures. Her discussion was very informative for the listeners to WCRK Hometown Radio. It was great to have Tim Crews back to do the show after two weeks without him, and I offer a special thanks to Amy Shrader for taking the time and putting forth the effort to be my guest on the show.

After several shows focused on helping Sellers with the challenges they are facing, I wanted to offer some information to buyers as well. On Saturday I talked about the New Rules of Mortgages and how to get yourself in a position to qualify for one. There are strict rules for the amount of money you can borrow based on your income and other expenses, and I talked about the ratios required for banks to consider a conventional loan.

I shared that banks require that your mortgage payment, your Real Estate Taxes and Homeowners Expenses can not total more than 28% of your total income, or the bank will not consider the home comfortably affordable. Also, banks are interested in the other debt you are paying each month. All your other payments on Credit Cards, Car Payments, Student Loans and any other debts you are paying combined with your home expenses can not equal any more than 36% of your income. The reason for this is that if you are faced with any unexpected expenses, you may find yourself choosing between paying your mortgage or a surprise expense, like car repair, vet bills, medical bills. If you are in that position, you could fall behind on your mortgage and the bank knows that you are a greater risk.

If you are in a mortgage or are considering a mortgage that will result in expenses beyond 28% of your income, you can easily fall into the situation referred to as "House Poor" which is a condition that many are in whose mortgages are far greater than that minumum of 28% of their income. This not only eliminates vacations and other luxuries, it can be disastrous if unexpected expenses arise.

I discussed the difference between a 15 year and a 30 year mortage and why they will appeal to different types of buyers. The interest rate on a 15 year fixed rate mortgage is typically 1/4 to 1/2 percent lower than a 30 year loan, and the payment on a 15 year fixed rate mortgage on a $200,000 mortgage can be as much as $450 higher more per month. The good thing about a 15 year mortgage is that you pay it off in half the time and pay about $125,000 less in interest over the course of the loan than you would on a 30 year note. The bad thing for some borrowers is that the required monthly payment is so much larger. If that mortgage payment combined with other housing costs is higher than the 28% guideline, it is probably just too risky. Know too, that a borrower can always pay extra on a 30 year loan without obligating themselves to a high payment every month.

I also mentioned that preparing your personal finances is one of the most important of all tasks you will undertake in buying a home, and I stressed how important it is to be in a mortgage that you can comfortably afford. Also, It is essential to look at your current mortgage and debt load and determine if you are following these guidelines. Make sure that your housing expenses (mortgage, taxes, insurance and homeowner's fees) do not total more than 28% of your income. Also, review your debt payments and add that to your housing expenses to determine that your total does not exceed 36% of your income. If your numbers are greater than these, you are at risk. You may not be able to alter your mortgage right away, but you can begin to eliminate debt. A good way to do that is to follow the advise of Dave Ramsey and take his Financial Peace University Class at All Saints Episcopal Church which starts August 11th. For more information, call the class director, Maudie Briggs at 423-312-0024 or contact All Saints Episcopal Church.

If you want to contact Amy Shrader, she can be reached at 423-839-2220 or you can view the Lenders Title & Escrow website at www.titleandclosing.com. Gratefully, I want to thank WCRK Hometown Radio for the opportunity to offer this broadcast on Saturday mornings at 10:30AM EST.

Thanks for being part of the ongoing conversation,

Dena Helms, Real Estate Broker

Re/Max Real Estate Ten, Inc 525 West Morrisd Blvd. Morristown TN 37813 423-581-8881 or 423-312-1247

www.openhousewithdena.com

The guest at today's Rotary Meeting was Jeff Shoaf from the Tennessee Smokies Minor League Baseball Team.  Jeff is the Assistant General Manager, and came as the guest of club member David Andrews of Pioneer Credit Company. 

Jeff informed the club that the Tennessee Smokies are in their 11th season st the Stadium at exit 407, and that they will host at least two playoff games in September.  Right now, the team is 21 games over 500 which is their best record since 2001.  With 14 wireworks shows this season, their average turnout is just under 3800 per game.  Jeff said that last year the Stadium drew 265,000 visitors.

Special thanks to Jeff Shoaf for visiting the club and also thanks to David Andrews for bringing in such a great guest.

For more information about Jeff Shoaf and Tennessee Smokies Baseball go to http://vocationvacations.com/DreamJobHolidays/tennessee-smokies.php

The Members of Morristown Tennessee's GFWC Somo Sala Circle produced another successful event for the community yesterday at the First Presbyterian Church feeding around 300 people and raising funds for area charities.

Stephanie Larkin, GFWC Somo Sala Club President, said that the event was a success raising over $300 more than last year's luncheon.  With 15 volunteers working to serve nearly 300 lunches, funds were raised that will be used to support area causes.

Some area services were on hand exhibiting information during the luncheon including the Red Cross, CEASE, MATTS, Helen Ross McNabb Center, Central Services, Girls Inc., and the Hamblen County Library.

We are proud to live in a community where volunteers and members of the community come together to make our town a better place for everyone.

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At your service,

Dena Helms, Broker

Re/Max Real Estate Ten, Inc. 525 West Morris Blvd. Morristown, TN 37814 423-581-8881

423-312-1247 (cell)