News Articles About Loans and Financing

Las Vegas Real Estate

News and information can help you make better decisions.  Purchasing a home is often one of the best decisions people make.  The following news and information is helpful in understanding how to finance a home purchase.

 

Hot Markets Show Best Loan Records "American homeowners have become debt junkies..." begins a recent Washington Post article by Kenneth R Harney. Here's why: 10 record mortgage balances 2) credit card bills 3) home equity lines 4) they put down less when they buy and borrow a lot more. Although families are absorbing more and more of their total income toward housing, the number of late and missed payments isn't increasing. Late payments on mortgages were lower in mid-2005 than they were at the same time the year before: 4.3 percent of all homeowners this year versus 6.6 percent last year. The lowest payment rate was in Hawaii, which is one of the most expensive U.S. cities to live in. Second and Third places go to California and Virginia, respectively. Note: the lowest rates of foreclosure in the country include some of the hottest markets. Harney, Kenneth. "Hot Markets Show Best Loan Records" Washington Post

Increase Your Buying Power with New and Flexible Mortgage Options Fannie Mae recently rolled out an improved program to help reduced mortgage insurance requirements for lower-income buyers. October 2005

September 1, 2005 was a valuable day to any consumer: federal law allows individuals to get free copies of their credit reports once a year from each of the major credit reporting agencies. The official web site for obtaining free reports is www.annualcreditreport.com or you can call (877) 322-8228.

An online source was referenced in the Las Vegas Review Journal regarding foreclosures. There were 8,556 homes in Clark County that went into foreclosure in 2004, compared with 17,304 in Arizona and 42,426 in Southern California. Smith, Hubble. "Investors Watch Foreclosure Rate" Las Vegas Review Journal 2 October 2005: E1+.

Bank Experiments with No Fee Mortgage Concept Bank of America has recently offered a program that is pioneering this lower-cost mortgage origination process. 5/8/2005

Nevadans Have Lower Credit Scores than Most of the Nation Nevadans have an average FICO score of 655, while the national average is 676. The average credit score in Las Vegas was 650. 4/29/2005

Loan Programs Avoid Mortgage Insurance Is it possible to obtain a mortgage without having to pay mortgage insurance? 4/14/2005

FICO Score Requires Attention The scores are based on algorithms that cover 22 variables related to 5 segments of a person's credit history. Most important is payment history, which accounts for 35% of the final score. 4/16/2005

Common Home Purchasing Mistakes When purchasing a home, especially if it's your first time, there are some precautions you can take to make sure you set yourself up for a smoother purchase. According to a March 2005 article in the Las Vegas Review Journal, there are some common mistakes that home buyers and home owners make. Here are 10 and how to avoid them 3/26/2005

Low Payments May Prove Risky A recent report from a Wall Street company suggests that some low-payment loans in today's hot housing market could prove to have consequences for those who do not fully understand the risks they entail. In some cases, these loans can push some consumers into payment shock, default and foreclosure practically overnight. 2/5/2005.

National Rollout of Free Consumer Credit Reports Under Way in West "They're rolling out the free credit score thing gradually," according to this article on free credit reports that appeared on 2/5/2005 in the Las Vegas Review Journal. The credit reports are going to be available on the web at www.annualcreditreport.com.

Joint Tenancy Means Group Ownership Joint tenancy is shared ownership. You, a friend and a family member can all take title to a property.

Few Grasp Concepts of Loan: Owners Have Much to Save by Understanding Principles of Interest Homeowners have much to gain from understanding why their mortgage payments are set up the way they are. They would also become clear about why they pay as much interest as they do every month, and exactly how the interest is computed. In many ways, having a mortgage is like having a brand-new loan every month. 1/30/2005 Las Vegas Review Journal

Hybrid Mortgages Offer Creative Financing Terms What kind of mortgage is best- fixed rate or adjustable rate? The answer to that question is different for different people, but it probably explains why adjustable-rate mortgages are popular and why "hybrid" adjustable mortgages are today's rising stars. "Hybrid ARMs provide consumers with the comfort of knowing that the interest rate will be fixed over the first five years of the loan." 1/30/2005 Las Vegas Review Journal

Interest Only Loans: Boon or Bust? Interest-only loans may be good products for some homeowners, analysts agree, but, for others, they can become a financial black hole. Here's what makes them attractive. With these mortgages, borrowers start out paying only the interest on the loan for a fixed period. After the agreed-upon period elapses, the loan changes into a traditional mortgage with the borrower paying both principal and interest. The interest rate will be set at the then prevailing interest rate, which may be higher or lower than when the loan was issued. 1/30/2005 Las Vegas Review Journal

Past Due Loans Slip in Nevada The percentage of residential mortgage loans that were past due in the Silver State fell to 3.37 percent at the end of the third quarter, down from 4.84 percent a year ago, the association reported. The percentage of residential mortgage loans that started foreclosure proceedings was 0.22 percent, half the level from a year ago. "The homeowner is much more reluctant to let a home go into foreclosure, because of that they have equity in the home," Puhl said. "In addition, the built-up equity allows to them to refinance and bring any loan delinquency current." 12/10/2004

Credit Woes Mean Higher Interest Rates Obtaining a home loan is possible even with extremely poor credit, however, your credit problems will label you a risky borrower in the eyes of a lender. Not all lenders choose to lend to risky borrowers. 11/27/2004

Quick Sale May Prevent Foreclosure- A foreclosure is worse than a bankruptcy on your credit record, as far as any future mortgage is concerned. Is a reverse mortgage a good thing? 11/20/2004

Loans Assist Buyers of Fixer Uppers Fannie Mae, HUD Plans Factor Renovations Into Single Mortgage 11/14/2004

Bank Charges Hefty Fees for Basic Biweekly Plan 11/14/2004

HUD Issues Gain Post Election Clarity What were the two biggest home-buying and mortgage issues affected by the recent election? One was settlement cost reform and the other was Fannie Mae and Freddie Mac. Advocates of reform seek to simplify disclosures of loan fees and closing costs and a new option that would offer borrowers the "bottom line" cost of obtaining a loan. Industry groups criticize these efforts claiming that these "packages" reduce their revenue. According to this article, expect to find news about reform from HUD in early 2005. 11/13/2004

Mortgage Insurance "Bitter Pill" to Take PMI is usually required when the loan amount exceeds 80% of the property's market value. Nearly 5 million people are paying that surcharge, costing them about $100 per month on average. The federal Homeowners Protection Act of 1998 mandated the cancellation of PMI whenever a homeowner's loan balance is paid down to 78%. To qualify, borrowers must have on-time payment histories for the year before termination of the coverage and no liens against the property. 11/13/2004

Purchase Plans Vary "Lease Purchase" is a term you may hear now and again in a real estate-related conversation. Jim De Both of interest.com explains what a lease purchase is and how it can be used to live in the house you plan to buy and make payments toward your down payment. 11/13/2004

Pre Loan Contract Helps Sort out Contingencies You've probably heard of a prenuptial agreement that defines how assets are owned if and when a marriage dissolves, but if you're not married to the person you're purchasing real estate with, the solution is called a pre-mortgage agreement. 11/6/2004

Purchase Delay May Be Costly The nation's 38 million renters should purchase a home now if they plan to purchase a home at all. Many potential buyers don't realize that buying a home is easier than ever before. 11/6/2004

Credit Score Holds Golden Key  Survey: Consumers Know Little About Financial Health 10/10/2004

Honest Communication with Lender May Avert Foreclosure Lenders work with borrowers who ask for help. Mortgage companies would rather collect their monthly checks than go through the expense and legal hassle of a foreclosure. Calling the mortgage company and telling them about your problems of paying will increase the odds of avoiding foreclosure. 10/9/2004

Home Buyers Scrap Together Funds for Purchase No-Down Payment Financing May Cost Borrowers More Over Time    9/12/2004

HUD Publishes New Rule to Protect Homebuyers from Predatory Lending HUD published a rule that makes lenders accountable for appraisals on mortgages insured by the Federal Housing Administration (FHA). The rule will be enforced as of August 19, 2004.

Title Policy Covers Loss from Liens  10/2/2004 by Jim De Both of Interest.com

Equity Loans, Credit Lines not for All  There are many home owners who, in need of a loan, went out and applied for a loan when a better choice may be to borrow against the equity in their homes. 9/25/2004

Lenders Look for Job Stability in Applicants  How important is job stability when applying for a mortgage? What if I am self-employed or I don't have a 2 year job history? 9/25/2004

Get Preapproved Before Beginning Home Search What is the difference between getting pre-qualified and pre-approved for a loan? Should I get pre-qualified for a loan before I begin house hunting?

Bi-Monthly Mortgage Pays Balance Faster Why pay it faster? Paying off your mortgage faster means you're saving more money and it's less time you have to pay on the debt. Since there are 52 weeks in a year, the borrower actually ends up paying 26 half payments, which translates into 13 full payments.

Balloon Mortgages Always Pop

 

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