Monthly Income reports determine we're not saving enough.

According to a survey conducted by Bankrate and an article on CNN Money, half of the American population currently saves less than five percent (5%) of their monthly income. It's estimated that eighteen percent (18%) of Americans save almost nothing from their monthly income. Scary right? What is the main cause of this problem and how do you make changes in your life to start saving more of your monthly income? Those are usually the first questions asked when discussions open up about personal finance.

As the United States Economy improves day by day, more Americans start spending more money on extra expenses. It's important to treat yourself once and a while. On the other hand, we know that the U.S. Treasury Bond can spike over night and raise rates to record highs. So its important that you're putting money into your savings. You know, for those "What if..." moments.

Why we're not surprised that monthly income savings are below five percent

When you factor in all that's going on in Colorado, Nevada and California, it makes complete sense to us that Americans are saving less from their monthly income. California is facing one of the worst droughts on record. The state taxes keep rising and wild fires are breaking out all over the place every other week. California always has something going on, so thats a little less alarming compared to Nevada and Colorado. Nevada is close to entering a drought of our own. The Colorado river feeds into Lake Mead and the Hoover Dam. With water levels continuing to fall, Hoover Dam is struggling to make power. This is alarming news considering that the Hoover Dam provides power to Arizona, Southern California and Nevada.

Lake Tahoe, in northern Nevada, currently sits below it's natural rim. This causes the Truckee river to produce less water to the city of Reno and raise water prices. You can see that even something as important as snow fall effect how much money you save. It kind of makes you rethink global warning all over agin doesn't it.

low water levels truckee river

Taken in 2015, the Truckee River sites with water levels at a record low.

How saving less can hurt your loan chances

When you apply for a mortgage loan, banks and brokers will want to see a copy of your W2's and your taxes for the last two (2) years. They may ask you for two (2) to three (3) months of bank statements. Showing that you have some money in savings is very important. Having a steady stream of income is even more important. What's more important, showing that even if you only put two hundred to three hundred dollars towards savings each monthly, you're committed to paying your bills on time. Investors will see this and assume that if you get the chance to save an extra five hundred dollars, you will. That can help per-qualify you for a mortgage loan. Not being able to save anything and having a crazy list of spending spree's does not help your situation. Keep that in your mind the next time you feel like splurging on new shoes.

Our monthly income savings recommendation

Valley West Mortgage recommends that Americans should save fifteen (15) to twenty (20%) of their monthly income. If you make $4000 a month, that would mean that you need to save six hundred dollars ($600) to eight hundred ($800) dollars a month. Our recommendation also accounts for savings toward retirements and the principle interest of your mortgage loan.

Defaults on debt: Puerto Rico defaults for the first time in history.

According to an article posted on CNN Money, Puerto Rico defaulted on it's loan debt for the first time in the island's history. It is reported that this will not effect Wall Street. It will however, effect the residents of Puerto Rico.

The Puerto Rican government was seeking concessions from its creditors, including deferring some debt payments, or extending the repayment schedule. It seemed that no one would emerge from this crisis unscathed: Garcia Padilla is now urging the island's creditors to "share the sacrifices."

The island is struggling with about $70 billion in total outstanding debt, and its economy is in recession. For the last few years, residents of Puerto Rico have been leaving the island for jobs and stability for their family.


1700 new homes to open in Summerlin

The Cliffs, a brand new Summerlin housing project broke ground today. The Cliffs, will be the newest village built in Summerlin in 12 years. The Mesa was the last village built. The Mesa was built in 2004. This brand new Summerlin housing community sits at the foot of the Spring Mountains, off Hualapai Way and near Bishop Gorman High School. When finished, The Cliffs will have 1700 brand new homes available for purchase. The Summerlin housing project will consist of 11 neighborhoods. Each neighborhood will be built one by one. You can only imagine that the waiting list will be very long.

This also means that new jobs will be created. Local businesses, like Valley West Mortgage, will have first time buyers knocking on their door. Every company that works in the housing industry, just cheered a little bit more today. This is good news for Las Vegas and Summerlin Housing. Attractions like the brand new Downtown Summerlin shopping center, are very excited and always welcome in new customers.

Valley West Mortgage will keep you updated as news breaks on this wonderful new Summerlin Housing Project.

FHA Lowers Mortgage Insurance Premiums. Refinance Today!

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In case you have not heard, President Obama has just launched a BRAND NEW MORTGAGE PROGRAM that makes REFINANCING EASY and DROPS FHA MORTGAGE INSURANCE PREMIUMS across the board for everyone that qualifies!

The Federal Housing Administration has lowered Mortgage Insurance Premiums from 1.35 to 0.85%. That means that you could save money every month on your monthly home mortgage loan.

FHA Lowers Cost of Mortgage Insurance Premiums, Possibly.

President Barack Obama announced on Wednesday that the Federal Housing Administration (FHA) annual insurance premiums will lower to 0.85 from 1.35, according to an article published by CNBC. This move is said to expand responsible credit borrowing to qualified lenders, according to the article, and is an effort to bring more first-time home buyers into the current market.

Mortgage issuers stocks also fell on Wednesday, according to the report, while home builder’s stocks across the nation rose. Julian Castro, Secretary of the U.S. Department of Housing and Home Development, believes that this move will increase the affordability of American homes over the next few years. He said that taking the premiums down for American citizens will improve opportunities and strengthen financial outcomes. He sees this as a step to reduce risks in the mortgage department and help protect consumers.

According to the article, the reduction in premiums could mean a savings of around $80 a month for a first time applicant to the FHA. In addition, Freddie Mac and Fannie Mae (two federally sponsored second-party mortgagers) announced recently a new 3 percent down payment option requiring private mortgage insurance. This, of course, is for qualified lenders, meaning those in very good credit standing. However, it does compete directly with the FHA, which offers down payment options at a 3.5 percent minimum.

The FHA has been working on building its capital reserves back up, according to the article, and because it is not in the clear yet, some people believe that the decision to make cuts could receive some criticism. To be out of the black, its capital reserves must meet a 2 percent minimum.

“Lowering the premium will bring volume back to the FHA,” said Diana Olick, real estate reporter for CNBC. “But it will also bring back risk.”

Among all the risks, the article reports that the White House administration is clearly looking for ways to increase homeownership by making the process and implementation of a mortgage less reckless for buyers. President Obama is expected to address all this and more on Thursday in Phoenix, where he will give a speech on the improvements in the housing market as well as future plans.

Read the full CNBC Article

Valley West Mortgage Prize Give Away 2015 | Tuff-N-Uff MMA

It's 2015. That means that we, Valley West Mortgage, want to start doing something more with our time than just offering the lowest rates in Las Vegas, NV and making our clients extremely happy. So we decided to hold our very first contest. We have 4, front row seats, to the January 9th 2015 Tuff-N-Uff: Xtreme Coture vs. Syndicate MMA event at the Orleans Arena.

So we have a few things you need to do in order to participate in this contest.

  1. Like Valley West Mortgage on Facebook.
  2. Follow Valley West Mortgage on Twitter
  3. Like Tuff-N-UFF on Facebook.
  4. Join the event on Facebook
  5. Leave a comment on the post on why you should win ticket to one of the Best MMA Events Around.

We Will Announce The Winner on Friday January 9th, 2015 On Facebook.

The Money Store and HomEq set to pay $54.8 Million for unnecessary late fees


A Manhattan federal jury reached a decision on December 19th, 2014, on a case that has been a longstanding suit by borrowers whose mortgages were owned or serviced by HomEq. Plaintiff Joseph Mazzei accused The Money Store and HomeEq of charging unnecessary late fees after the lenders had accelerated homeowner's mortgage loans. They also claimed the late fees were prohibited under the terms of the loan agreement and voided state laws.

The plaintiff, and other homeowners, hope that this case will shred light on banks trying to gain any advantage on their borrowers and force all banks to become transparent in all aspects of their company procedures. Since 2008, the constant struggle for homeowners to just trying to stay in their home is hard enough. Some homeowners are living check to check, working two jobs and spending less and less time in the actual home that they are paying for. Add a bank that tries to squeeze their borrowers for every extra penny and you get almost every plaintiff in this case.

The trial lasted 10 days in the Southern District of New York.

U.S. Treasury Yield falls 1.1 points.

Early declines in the 30-year Treasury yield were reversed on Monday, according to Market Watch, with investors being reported of buying long-term treasuries after a low lasting two years.

The yield fell 1.1 points from Friday afternoon, dropping to 2.740 percent down. According to Market Watch, there was talk to language being altered to the policy statement that declares the Fed will maintain lower rates “for a considerable time.” Some believe, say Market Watch, that this action could be indicative of a rate hike sometime within the next six months.

This talk, which was heightened by a strong industrial production on Monday, was not the only change that Monday’s market saw, nor the only waves. According to Market Watch, the two-year yield went up to 0.5854 percent, the five-year yield was up to 1.574 percent, and the 10-year yield moved to a high of 2.136 percent.

The yields to treasury bonds vary inversely with price. For example, it is generally accepted that when the bond rate increases, prices on the market decrease, and vice versa. This could be good for some or for the moment; however, depending on which end of the equation you’re on, you will either benefit from a high yield or high price, which generally don’t go hand in hand. This also is the reasoning that some people suspect this could be an indicator of a price spike soon.

Market Watch also put together a list of other key movements in the market on Monday, including the decline of Greek sovereign debt yields, the rise of the German 10-year Bund Yield, and the ever-falling prices of crude oil.

Equity, Credit and Cash are the same thing. Here's why.

If you’re interested in financing a home, there is one apparent and prominent thing you are going to need: cash.

It may not be paper money, but some sort of equity or credit to put up on a test of good faith. Money is the driving force behind the American economy, and in the last 15 years, it has been the source of many anxious American’s problems and successes. We struggle when we have too little, we forget appreciation when we have too much. Like it or not, this is the way the game is played here, so therefore, it’s best for consumers to look out for themselves.

In 2010, President Barack Obama signed a piece of legislation to make sure that consumers have a big brother watching over them, and the Consumer Financial Protection Bureau was born.

Established by the Dodd-Frank Wall Street Reform Consumer and Protection Act, the CFPB oversees “the Federal financial laws that specifically protect consumers” according to the White House website. This encompasses a large part of the country’s population, in particular to mortgaged home owners, who make up about 70 percent of occupied owner homes in the United States, according to USDTA.

Since its inception, and even beginning as an idea back in 2007, the CFPB has experienced its fair share of ups and downs, but it is very important that consumers in America who put their money in banks, credit unions, and loans to survive, understand the ins and outs of what this Bureau does and why it was created.

Before its creation, there was no one central organization charged with overseeing consumer protection, but rather a slew of companies. A situation like this could potentially cause people to be on many different pages when it comes to knowing what paperwork they’re signing and why. This was the central idea behind creating the Bureau: to make sure that Americans understand, read, and know the fine print, particularly riding the coattails of a time when mortgages were being sold to those who couldn’t afford them.

According to the White House website, the lack of central rules over the whole market contributed to the “epic” economic crash. In addition to overseeing Federal banks and credit unions, the CFPB also now oversees privately owned institutions.

So what exactly is the CFPB protecting you, the consumer, from? Well, hidden fees and deceptive practices, according to the White House website. The estimated large portion of Americans who use payday lenders is a group they target, in an effort to keep all financial and non-financial institutions honest and not deceive the consumer. They also offer education for consumers to make sure they have the information they need before making major financial decisions, based off they’re publicly available research. The promise to enforce the regulations on all groups as well. This can be seen in implemented policies such as “know before you owe: student loans.”

However, like any startup, it has not been without people’s opinions of their faults. For more information on the CFPB, please visit the White House website or consider reading “A Watchdog Grows Up: The inside story of the Consumer Financial Protection Bureau” from January 2014 blogs on the Washington Post website.

Federal Reserve Halts Purchase Of Bonds.

For the first time in 37 years, the Federal Reserve halted purchase of bonds on Wednesday, October 29. This came as no surprise to many, as the Fed has been steadily cutting purchase of mortgage-backed securities for the entirety of 2014, but it certainly is jarring to see the program finally come to a halt.

What does this mean for you the borrower and client? It means that there is potential for government debt prices to be pushed down in potential declining demand. This also means that this action could raise yields simultaneously.

The process that central banks began after the recession, called quantitative easing (QE), is a method used to stimulate monetary value when an economy suffers to do so itself. When the Fed began the program, the intention was never to last forever, but just long enough to see the market stabilize on its own, at which point the “easing” would begin. This works by the central banks buying financial assets from commercial banks, which lowers yields and increases monetary base at the same time.

Although tapering didn’t begin for the Fed until last December, the 10-year Treasury yield had already climbed to almost 3 percent. This is generally seen as a good sign by economists; while this is not a high number, it is higher than the previous percentage which was below 2 percent. The higher the treasury yield, the better the economic outlook. With the purchase of bonds being halted, experts believe that the economy and monetary value could continue to see a boost, bettering both the market and the economy.

Stay up-to-date on the bond market and treasury yields at or