Brenda Price - NEXA Mortgage NMLS #2737104

Veterans and their guests of all ages will enjoy hot breakfast and warm fellowship at Kodak Church on Saturday 13 July 2024 compliments of Brenda Price - NEXA Mortgage NMLS #2737104 BRENDA YOUR LENDER. Volunteers with Spencer Clack Chapter, NSDAR Sevierville, TN will be serving Swaggerty's Farm sausage, scrambled eggs and biscuits & gravy prepared by our friends at Food City right next door to the church!

The United Veterans Council of East Tennessee, Inc. presents 13 of these breakfasts every month throughout East Tennessee with the support of Rusty Wallace Nissan, Tennessee Valley Authority, TVA Retirees Association and Bicentennial Volunteers Inc. Learn about sponsoring a breakfast by calling (865) 604-4443. Thank you!

There’s plenty of “mortgage jargon” out there that makes learning feel scary, so I’m breaking down a couple acronyms. Other real estate professionals- add more definitions in the comments!

PMI- Private mortgage insurance. A monthly payment that you may be subject to if your down payment is less than 20%.

DTI- Debt to income ratio. We take this into consideration when approving you for a loan and determining your monthly payment.

APR- Annual percentage rate. The overall yearly interest rate.

ROI- return on investment. The amount you earn from the money you invest.

What are some big words or acronyms that you hear often, but don’t know the meanings of?

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Young adults: If you haven’t bought a home yet because the down payment or the monthly payment is too high, I have a solution and a proposition for you. With an FHA loan, you can get into a home for 3% down. If you purchase a duplex, you can rent out the other units and put a serious dent in your monthly housing costs.

There you go- small down payment, small monthly payment, BIG return on investment.

Think about it!

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Happy graduation season, everyone!! If you’re a new graduate or you have a graduate in your life, I have a message for you.

Graduates, this is a great time for you to celebrate your achievements and take in what it feels like to be a “real” adult. Your degree is an investment- it’s intellectual capital. You should be thinking about homeownership the same way- as an investment. You’re putting your monthly mortgage payment toward yourself and your future instead of flushing it down the drain paying rent each month. Becoming a homeowner is a huge step toward creating wealth, and the sooner you can start, the better.

You can get into a home with 3% down using an FHA loan. If you’re ready to start thinking about this step, I’d love to have a conversation with you and just flesh out the idea. Whenever you’re ready, I’m here!

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THE ALL-IN-ONE LOAN:

-home financing

-personal banking system

-low interest rate

-puts cash directly towards the principal of the loan

-pay off your mortgage decades sooner

What more could you ask for? If you’re looking to take your financial life to the next level, look no further because this is the loan that can take you there. Now, the disclaimer is that you need a good credit score and income, so if you’re just getting started on your wealth-building journey, then this may not be a viable option for you. However, it’s a great thing to start working towards, and if you’re able to make it happen, I think it’s well worth it.

Questions? Message me and let’s talk!

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Are you a veteran? If so, did you know that you can buy your own home for 0 DOLLARS DOWN with one of the lowest mortgage rates on the market? Buying a home is a great way to start building wealth, and if you’re looking to start investing in real estate on a larger scale, this loan is a fantastic way to get started. You’ll be years ahead of yourself were you getting a traditional mortgage because you get to skip the years of saving up for a down payment, so you can stop paying rent and start building wealth sooner.

This is a wonderful way that the government gives back to those who sacrifice so much of themselves for us civilians, and if you can take advantage of it, you should! Message me to learn more about how to make this option work for you!

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DAVE RAMSEY: Is he outdated and irrelevant? Or does he tell the tough truths that are hard to swallow?

Dave Ramsey is arguably the most well-known voice on personal finance in the country, and he’s known for saying some pretty controversial things. For example, Dave recommends that if you have trouble staying out of credit card debt, you should cut up your credit cards and never use a credit card ever again, which is not optimal for building a credit score. Dave does not think that building a credit score is important. He also says that once you have $1,000 saved up, all your expendable income should go to paying off your debts. Life throws curveballs, though, and $1,000 is barely any cushion at all when life knocks you down.

Dave was born in 1960, and he got rich in his 20’s in the 1980s. Most people can agree that the economy in the 1980s was different than it is today. Just go to the grocery store- I can tell you that eggs were NOT this expensive in the eighties. Given that Dave Ramsey was forged in a different fire, does his advice still hold true for us today? What do you think?

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I have a serious game-changer for anyone who is financially stable but looking to take their finances to the next level. This invaluable tool is called the All In One Loan, and it’s unique in that it’s the only 30-year HELOC with a built-in sweep checking account.

Here’s how it works: You set an account balance you want your checking account to sit at. You pay your expenses out of that account as well as deposit your income into it, and any time the balance exceeds your set threshold, that extra money on top gets “swept” straight to the principal of your loan. This does numbers at reducing your interest payment, and your loan will be paid off way faster than making the monthly payments on a traditional loan. At the end of the day, you could save tens of thousands of dollars, because you’re putting a dent in the principal of the loan each month instead of just barely covering the interest.

This loan really is a game-changer for those who are serious about not being a slave to their monthly expenses. If you have any questions about how this works, give me a call!

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Today I want to talk about step 2 of the BRRRR process: the Rehab.

The point of rehabbing a house is to increase its value so that when you refinance, you have equity to cash out on. This means that you should focus on the upgrades that will give you the best bang for your buck. It can be a complicated process, but here are a couple of my tips.

- You can take a lot of cheap shortcuts in the rehab process, but it could bite you in the butt if you end up needing to fix what you got done for cheap, and in the end, you won’t have saved any money anyways. It’s always cheapest to get it done right the first time.
- A good contractor is worth their weight in gold. You’ll find that many contractors drag their feet about getting things done, so if you find a good one, treat them right and never let them go.
- Focus on what ACTUALLY needs to be done first. Maybe the bathrooms are outdated and could use a facelift, but the HVAC isn’t functional, replace the HVAC first. You will find hidden expenses throughout the job, and you want to make sure your budget covers the essentials first.

What do you focus on when you rehab a house? Do you have any horror stories? Share in the comments!

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When you’re passionate about something, you’re intrinsically motivated to excel. You feel an inner urge to put in the hours because YOU want success. When it’s “just a job” to you, you’re just going through the motions. You work because your boss tells you to meet certain milestones, or because you need to pay the bills and don’t want to get fired.

Life is too short to be going through the motions. Your time left on this planet will fly by, and at the end of your life, do you want to know that you spent 40 hours a week, every week, for years just repeating your routine at your desk, not caring whether or not your employer’s business sinks or swims? If you ask me, time is far too precious to waste so much of it on that.

If you find something that lights you up, that gives you that inside push to put in the work, I say you should pour yourself into that. That’s what I did, and I couldn’t be happier. I feel like the way I use my time is meaningful in a way that works for me. Every hour put in gets me closer to my idea of success, and that success serves ME, not my boss.

Have you had a similar journey? What did you find that lights you up?

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Home prices are high. Mortgage rates are high. Cost of living is high. No one can deny it! While I do believe that if you’re able, you should always invest in homeownership no matter what’s going on with the economy, I know that buying a traditionally built house is unattainable for some people. If this sounds like you, I have a possible solution.

You can buy a nice manufactured home, get more land and more square footage, and pay much less than you would for a traditional home. A client of mine recently bought a nice, double-wide manufactured home on 5 BEAUTIFUL acres of land- and they got it for only $265,000!!!

I found a comparable property on Zillow to really demonstrate the advantages of purchasing a manufactured home. The property linked below is on two acres of land (less than half of what my client got) and is 1,350 square feet (about 2/3 of what my client got), and it’s listed for $300k ($35,000 MORE than my client’s home!). The manufactured home has more acreage, more square footage, the same amount of bathrooms, two more bedrooms, and is 30 years newer than this property- and it's $35,000 LESS.

If you’re worried that you just can’t afford the home prices these days, you should do some research into manufactured homes. They don’t appreciate as much as traditional homes do, but they are still leagues better than renting, and the land itself can appreciate and make a profit upon its sale. It’s definitely worth a thought!

Would you buy a manufactured home?

property link: https://www.zillow.com/homedetails/874-Layman-Dr-Dandridge-TN-37725/42478512_zpid/

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You could have it all- career, money, status- and still not be happy. The societal idea of “success” may not be the standard YOU want to chase. Success should be defined as what fulfills us each individually. Don’t chase success in the eyes of others- chase fulfillment in yourself.

What does that look like for you?

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Have you ever heard of an escrow account? Let’s break it down!

Your escrow account is like the middleman in your mortgage process. It’s an account set up by your lender to hold funds for paying property taxes and insurance. When you pay your mortgage each month, a little extra cash gets deposited into your escrow account. When your property taxes or homeowner’s insurance bills come due, your lender takes the money from this account to pay them.

Once a year, your lender will review your escrow account and may adjust your payment to account for changes in taxes and insurance costs.

As a homeowner, you’ve got a lot to take care of- bills, groceries, the mortgage, maintenance, etc. Having an escrow account gives you one less monthly deadline to worry about.

Does this make sense? What should I explain next?

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Everybody knows what a realtor is and their role in the home-buying process, but the role of a mortgage loan originator is less common knowledge.

Basically, I’m the lady you go to when you need a mortgage. My job is to facilitate the process of getting a loan and to guide you through each step of the process. I can help you with the application and getting approved, and then I’ll shop through mortgage products from over 100 lenders to find the best loan out there for you. My job is to make your job easy- all you have to do is send in the necessary forms, and I’ll handle everything else. I’m like a realtor, but for mortgages!

I hope this clears things up. If you have any more questions, let me know!

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I know this is how some of y’all are reading my posts 😂 You may not be looking to buy now, but when you are, I’ll just be over here!

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There is occasionally some confusion about what my role as a mortgage loan originator is and isn’t. Sometimes, people think that I as an LO am responsible for setting the price of a property. While I do offer the mortgage used to buy the property, I can not influence a property’s listing price.

This is the job of a 3rd party- the AMC or appraisal management company- who assigns an appraiser to determine a property’s value. This practice began after the housing market crash in 2008. Regulations were put into place to create distance between the loan officer and appraiser, leaving no chance of collusion or price manipulation. It’s all to maintain transparency and trust!

I hope this clears things up for some people. If you have any other questions about the role of a mortgage loan originator, ask them in the comments!

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Monday’s solar eclipse has had me thinking about what an event like that would be like back before technology as we know it existed. Imagine not knowing the eclipse was about to happen and not knowing its cause, and suddenly, the Sun goes dark. I did some Googling, and apparently, people in China thought a monster was eating the Sun, and they banged on drums and yelled to scare it away.

We know what solar eclipses are and what causes them, but totality still deeply affects us. I remember the totality in 2017. It made the hair on the back of my neck stand up, and I was expecting it! I can’t even imagine what it would be like to watch the Sun go dark with no warning. I bet you’d think the world was ending. What do you think?

What is a “gift of equity”? Read up, because it could potentially save you tens of thousands of dollars.

A Gift of Equity is when a home seller decides to gift a portion of their home's equity to the buyer. This "gift" is typically used as part of the down payment or to reduce the sale price. This tool is usually used between family members, such as parents selling a property to their child.

However, this isn’t a workaround for getting approved for a mortgage- the buyer will still need to be eligible for a mortgage in terms of credit score and income, regardless of the size of the gift.

There are a few reasons a seller might want to give the gift of equity. For older homeowners, giving equity can be a way of distributing their assets that would otherwise be detailed in their will, which simplifies the estate settlement process. These gifts also count as donations for tax purposes, which can be pretty sweet for the seller come tax season. Many sellers also use gifts of equity to keep a property in the family, as it makes the home purchase more feasible for the buyer.

However, there are a couple of cons to consider. A gift of equity could trigger a gift tax, which kicks in if the gift is over $36,000 if the sellers are a married couple or $18,000 if the seller is single. A gift of equity could also mean that the buyer could have to pay a capital gains tax when they sell the property, so buyers should do their homework when considering whether or not to use this tool.

Could this be the tool for you? Call me and let’s discuss the pros and cons of using it in your situation. Talk soon!

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HOUSE HACKING- Let’s take a look at the numbers- with REAL LOCAL listings- to show you that this is actually doable!

One house-hacking method is purchasing a multi-family home, living in one unit, and renting the other units out to short or long-term tenants. This allows you to reduce or even completely cover your housing costs while building equity in the property. Let’s see it in action!

https://www.zillow.com/homedetails/119-Pleasant-Hill-Rd-Sevierville-TN-37876/52020247_zpid/ Let’s take a look at this 2-unit house with 3 bedrooms and 1 bathroom per unit, listed for $375,000. Let’s say that when all is said and done (negotiating, closing costs, etc.), you pay $400,000 for the house, and you put 20% down. Your monthly payment will be $2,022.62.

https://www.zillow.com/homedetails/844B-Stanton-Rd-Seymour-TN-37865/346891052_zpid/ Here’s a 3 bedroom, 1 bathroom house that’s similar square footage in the same area, and it’s listed for $2,200 a month. That covers 100% of the mortgage, with a monthly excess of $177.38.

After five years of paying your standard 30-year mortgage, you’ll have $299,555.13 left on your loan. Also, you’ll have gained considerable equity due to the loan amount decreasing and the property value increasing. If your home is appreciating 4% per year, your duplex would be worth $486,661.16 after these five years. Let’s say you decide to sell it.

$486,661.16 - $299,555.13 = $187,106.03

You just made almost $200,000 - over triple the down payment - and didn’t put a single dollar towards your monthly mortgage payments. If you were renting this same unit for five years, you’d be out $132,000 with absolutely nothing to show for it. When I say homeownership is the key to financial freedom - this is what I mean!!! Stop renting and start making your money work for you!

If you have any questions about actually making this happen, reach out! I’m a real estate investor first, and I know this process inside and out. Let’s start building generational wealth NOW!

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This market has gotten a lot tougher for agents and MLOs over the past couple. This “drought” has been tough for a lot of people, and it’s driven quite a few out of the industry. However, I want to remind everyone that life happens in seasons, and spring always comes after winter.

There have always been upturns and downturns in the real estate market, and we’re all still here. The recession in 2008 didn’t wipe out all the real estate professionals- it just separated those who could survive from those who couldn’t. Those who did make it through to spring not only gained invaluable experience through the process but also thrived afterward due to the slashed competition.

Some people will naturally be moved out of the business, giving the remaining professionals a chance to shine. This is just the way of life. If you look around, none of the biggest producers are worried- they know that the value they bring to their clients will bring them through this season of separation.

If we can just make it through this season to spring, then we will thrive. Hang in there everybody!

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You can’t have everything you want, but you can have the things that really matter to you. People talk about how impossible homeownership is these days, and I really do get where they’re coming from. It isn’t easy. It isn’t fair. The system isn’t set up for individual success. A lot of things could and should be a lot better.

However, it really isn’t impossible. You CAN do it. It’s a matter of planning, discipline, and sacrifice. If you want to invest in your future and cultivate generational wealth, you may not be able to afford new cars. You may not be able to afford to rent the nicest, biggest apartment while you’re saving for homeownership. You not be able to go out drinking 3 nights a week and order your meals via DoorDash.

But think about it- what’s really more important? The flashy material things, the cheap convenience- or taking your first step towards financial freedom?

If you want to talk about how YOU can achieve homeownership, let me know. I’m here for YOU!

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FHA loans are a great tool for homebuyers who don’t have a large down payment saved up. However, it’s sometimes difficult to find a house that meets FHA loan requirements. Because the FHA often requires sellers to fix certain aspects of a house, many sellers who don’t want to fix up their houses refuse to sell to buyers using FHA loans.

Luckily, I have a workaround for this. It’s called the conventional 1% down loan. This product offers the minimal down payment of an FHA loan without the stricter parameters. You put 1% down, and the lender will put the other 2% down (up to $4,000) to make a 3% down payment. You can ask your realtor to negotiate seller credits to cover your closing costs, and then you’ve bought a house with only 1% of the total cost in cash! This is an amazing tool, especially for first-time homebuyers.

To be eligible, you must make no more than 80% of your area’s median income and have at least a 620 FICO credit score. If you think this might be a good fit for you, reach out to me, and let’s talk about it.

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35% of Americans are taking on debt to make ends meet. If you’ve fallen victim to this as so many have and your debts are piling up with huge interest rates, consider taking a HELOC as a means of debt consolidation. Most buyers will be able to secure a lower interest rate on their HELOC than on a debt consolidation loan, so they’re saving more money in interest payments.

I have access to a product- the AXEN HELOC- that can get funds into your account within a week with a quick application process. Just recently, a client of mine applied for this product and had her funds securely in her bank account within just 5 days. A lot of people think of this product as long and tedious, but it doesn’t have to be!

If you’re interested in this product, click the link here: https://axenmortgageheloc.com/account/heloc/register to apply. It’ll only take a few minutes, and if you need anything at all from me, I’m just a phone call away!

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If you keep track of real estate news, then you’ve been hearing all kinds of ruckus about the National Association of Realtors (NAR) Settlement Lawsuit.

First off, what even happened? Basically, a federal jury concluded that the NAR and a couple of other large brokerages were using the Multiple Listing Service (MLS) to artificially inflate real estate agents’ commissions on the sale and purchase of real estate. The compensation for the buyer’s agent would just appear on the MLS, and sellers were never told it was negotiable, so they were locked into paying whatever fee the brokerage listed. The NAR has agreed to a $418 million settlement for this lawsuit.

Now, what does this mean to you? If you aren’t a realtor, probably not much. This isn’t going to bring property prices down, and you’re probably going to be paying the same commission to use a realtor to buy or sell your home. All that happened with commission is that it was “decoupled”. In the past, the industry standard was 6% commission on a home- the buyer’s agent and the seller’s agent would both take home 3%. This 2-in-1 deal of commission will no longer be standard- now, agents will have to negotiate for their commissions.

This lawsuit does have a few implications for realtors, but it is absolutely not the end of the world. The buyer’s agent will have to do some negotiating to ensure they get a commission, and they’ll need to get an agreement signed in their consultation to make sure they get paid. Commission is no longer guaranteed, but buyer’s agents who do good work and take precautions will still get paid. Just like always, the agents with the listings will have more control over the transaction, so they won’t need to worry as much about keeping their commission.

If the court approves this settlement, these changes will take effect in mid-July. All in all, everybody is going to be okay.

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A few weeks ago, I posted about depreciation and how it can be a tax benefit to you when reporting income from your rental properties (see the link at the bottom of this post to read that post). However, there’s a catch. When you go to sell that property, you’re more than likely going to sell it for much more than that depreciated value that you reported to the IRS. Uncle Sam is gonna see that, and he’s going to want his chunk of the money back.

Lucky for you, there are a couple of loopholes to this. One of them is called the installment sell.

Installment sales require the buyer to make regular payments, or installments, on an annual basis, plus interest if installment payments are to be made in subsequent taxation years. This spreads out the seller’s income from the sale across the years, which allows the seller and the seller’s capital gains to stay in a lower tax bracket. This also has more niche tax benefits, such as helping avoid Medicare Part B Premiums, preventing social security benefits from being taxed, and ensuring that the seller can still take the full amount of student loan interest deduction.

If you have any more questions, let me know! I love helping people take full advantage of the tax benefits of real estate, and I want to help you take as much money home as you can. Send me a message and let’s chat!

Depreciation post: https://www.instagram.com/p/C3aJj2POulN/?utm_source=ig_web_copy_link&igsh=MzRlODBiNWFlZA==

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