Pay off a 15 year mortgage loan in less than 10 years
Las Vegas - Record Setting rates reported by CNN MONEY
CNN Money reports that the average 30 year fixed mortgage fell to 3.94%. These rates compare to the record setting rates we saw in early October. At the same time, the 15 year fixed mortgage fell to 3.21%, and the Five-year adjustable rate mortgages also plumbed new depths, hitting 2.86% for the week. This does not come as a surprise to many of our sites visitors that have been keeping up with the recent postings we have featured.
Mortgages are a tough thing to wrap a mind around. It should be as easy as saying "today's rate is this, that's what you get." Instead, there are scenario's that need to be examined, requirements to be met and money to be saved. With the national average falling to 3.94%, things might get a little easier. Freddie Mac's chief economist, Frank Nothaft, said that these rates will more than likely stick around until at least mid-2012. Valley West Mortgagewants to help our readers save money the best that they can. SO here is a tip.
Les Christie of CNN MONEY reports that "The low rates can translate into big savings for home buyers. Five years ago, a home buyer would have been lucky to land a 5% rate on a 15-year loan. On a $200,000 mortgage, that would have meant the borrower would have paid $1,582 a month. Should a borrower land a 3.2% rate on a $200,000 loan now, the monthly mortgage payment would come to $1,400 -- a savings of $182 a month." While this is true, I would like to tate a fact that could save your money money and time in the long run. Lets say that the previous situation applies to your situation. You were paying 5% on a $200,000 mortgage and are now at 3.2%. You are saving $182 a month. Your first initial thought would probably be that you now have extra money to spend on groceries, bills or gas. But here is an idea. If you took that $182 and made a separate "PRINCIPLE" payment, you could actually pay off your loan in less than 9 years. Now let's be clear about this. You would have to write the check to Mortgage Company that you are paying and clearly state on the check, that the check is to be paid to the PRINCIPLE on your mortgage.
While it's not a bad thing to want to pocket the money, being smart about paying off your loans and interets sure does help. See our recent posting about Mortgage Rates at their lowest, arguably to get a better understanding on how people claiming "RATES NOW" are lower then the same exact rates "THEN".
Why should you use a Las Vegas Mortgage Broker instead of going to a bank?
Las Vegas, Nv
Below is an excerpt from a letter to President Obama. This letter was sent to him by the National Association of Mortgage Professionals (NAMB) of which, we are a proud member.
" The Georgetown University study stated that Mortgage Brokers saved borrowers thousands of dollars when it came to their mortgage needs. And the obvious differences on using a broker for your mortgage is that Mortgage Brokers are licensed by their state and the NMLS, take continuing education, take a national and state to be able to be licensed, have a criminal background check with fingerprints, and have their redit checked. Mortgage Originators that work for these banks failed to pass some of these items, test, background checks, etc., and that really sets Mortgage Brokers apart from those depository institutions.
There are thousands of good honest Mortgage Brokers in America that have never participated in sub prime loans or have used any of the exotic products that Wall Street or the Mega Banks created. And most of these companies that did these loans were not mortgage brokers.You consistently use the term Mortgage Broker to relay information having to do with the Housing industry and that is not fair. Let me give you an example. When a drug creates a problem in the medical industry, the FDA goes and contacts the maker of the drug and deals with the company. They don't go to Walgreens or CVS and shut them down, making them the scapegoat for selling the drug. The same is with the Mortgage business. We only sell what is out there from the banks and wholesale lenders. We have never developed or created any of these products. We do not underwrite them or approve them. Yet it seems that every time something comes out about the mortgage industry, it is a Mortgage Broker that did it."
In short, Mortgage Brokers provide a valuable service and save their clients' money over going to a Mortgage Bank or Depository Bank. Let's put this in plain english. We sell the Ice Cream. Not make it.
Mortgage Rates are at their Lowest, Arguably
When talking about the "Lowest Rate Possible" a strong, two sided debate always takes place. We have heard this argument take place, many times both sides make equal and valid points to their case. Either way, Valley West Mortgage is here to tell you some of the details involved with the phrase "Lowest Rates Ever!".
Earlier this fall, the beginning of October and even the end of September, rates were on average lower then they are today. That being said, in terms of the actual interest rate that's most likely to be quoted to an ideal-scenario borrower, it was 3.875% then and after a long time stuck at 4%, the most prevalent best-execution rate is once again 3.875%.
There are a couple things to keep in mind when thinking about a 3.875% Best-Execution rate.. 3.875% Best-Execution rates mean that this the most prevalent RATE for the best of qualified scenarios, while it considers the costs involved to obtain that rate. Those costs can vary quite a bit before a move up to 4.0% or move down to 3.75% would be justified. We're only just entering the very outer limits of 3.875%'s range of closing costs (on average, some lenders are already close to 3.75, some are still at 4.0 or higher). The point I am trying to make here with this article on Lowest Mortgage Rates is that with all this hype and exposure of the term "LOWEST RATES POSSIBLE" in the market today, it is a good idea to step back and take a look around. It is very important to know all the details. You might have a better scenario then you imagine, leaving you with more options to help choose a company that can move down to 3.75%. It is not that the rates have not been here before, or that you have not been warned numerous times about subject similar to this one. The fact is that many first time home buyers have no idea what they are jumping into - (Not Factual).
Many first time home buyers read a Mortgage Blog, maybe even a book or watch a video and then make a few calls hoping to get some kind of valid information, possibly hearing some of the same terminology they just read about. Valley West Mortgage is dedicated to helping all of our potential home buyers find all of the information needed to make a smart decision with their future. See our past blog about Loan Officers Should Always Provide Valid Contact Information. Our staff at Valley West Mortgage can prove their Authenticity, as well as our companies, before talking number.
Loan Officers should always give you Contact Information
Weither you are a First Time Home buyer or an experienced Home Buyer, Dealing with a Local Mortgage Broker can be frustrating at times. Your point of contact with a Mortgage Company like Valley West Mortgage is always going to be through the Loan Officer. Loan Officers are defiantly a breed of their own, in a good way. We can vouch for that. Having a solid line of communication with that loan officer is the key ingredient when you apply for a home mortgage loan. Whether you use Email, Cell Phones, or the good old fashions Fax Line, A loan officer should always be able to communicate.
When you talk to a Loan Officer with any company, you should always ask for a few minor details. All should be answered with out hesitation if they are in fact a real loan officer. It's like asking someone for their ID at a bar. Very simple task for anyone over the age of 21. The same rules apply to Loan Officers.
SO what do you ask for?
When talking with your professional loan officer you may ask for a few certain details to prove the L.O.'s authenticity and the same for their company. Here is a short list of some of the things you could ask a loan officer for. Our Very Own Senoir Loan Officer, Jeff Gonzalez provided us with this list.
- A copy of the loan officers License
- A copy of the loan officers Company License
- The Loan Officer NMLS and State License Number
- A Link to the MLD.NV.GOV website.
- A link to the NMLS website.
All of these items are very easy for a loan officer to obtain and provide at a clients simple request. A failure to provide the following information should result in you or anyone else shopping around for another Mortgage Company like Valley West Mortgage.
Valley West Mortgage wants all of our clients to provide all of the information needed to start a loan with our company. The same goes with any one of our professional Loan Officers providing any client with the information they need to make the best choices possible. Contact Valley West Mortgage today to talk with Senior Loan Officer J. Anthony Romero, or any of other Qualified Loan Officers. Tel: (702) 696-9900 | FAXL (702) 436-2400.
Rates have hit Rock Bottom. The lowest rates in recent years. Call Valley West Mortgage today (702) 696-9900 to reserve your low rate.
Mortgage Rates Are on the Rise!
We said it would happen and soon. Average rates have just passed 5%
What we don't know is how far or how fast this Mortgage Rate rise will be. Recent positive indicators for the economy have caused rates to rise. Mortgage Rates parallel Long-Terms Bond Rates and those always rise on positive economic news. It is more important than ever to have your Refinance or Purchase file in the hands of a competent Mortgage Professional! At Valley West Mortgage, we keep a very close watch on rates for our clients. While rates are clearly on the rise, they still have their ups and downs. We watch all of the rate change indicators for potential changes so we can lock rates at the best possible advantage for our clients.
The key to being ready to lock is having a complete file which is ready in every respect. With our clients help, and help from our Realtors on Puchase files, we do everything within our control to make sure that your file is complete, as quickly as possible. In this way, we won't miss any opportunity to secure the best terms possible! Give us a call today so we can help you to succeed even in this unstable market. Remember, Las Vegas is still one of the best buying opportunities in the entire country regardless of current rate fluctuations.
Call (702) 696-9900 or (888) 931-0007 and let Valley West Mortgage get you ready to close!
It Really is Better to Buy than Rent in Las Vegas!
On the upside...
A study was published today by Trulia, a major Real Estate watch site, and Las Vegas is #2 behind only Miami as the best place to buy rather than rent. I'm sure that this will be on most of our Local News stations by this evening. They love to cover the latest Las Vegas Real Estate news.
As we have said before, this is the best opportunity in years to buy a home in Las Vegas! Currently, rates have been fluctuating quite a bit due to market uncertainty. For the past two weeks, rates have finished slightly highger. Don't wait for home prices to "drop a little more" and then find yourself out of position because rates have gone up too much.
Call our professional staff and get the ball rolling today! That way, you will already have provided everything needed in order for us to lock your rate as soon as you have an accepted offer on a property.
Call (702) 696-9900 or (888) 931-0007 and let Valley West Mortgage get you ready to close!
If You Have Appreciated Our Service...
Please let us know!
Your positive responses to our Professional Mortgage Services have always helped us to improve and to be here when you, your family and your friends need a Mortgage Professional that you can trust. We invite you to drop us a note on your experience with our company and we'd like to ask one small favor...
Would you also copy your note to Angieslist.com? In this electronic age, it is more important than ever for us to maintain "electronic" reputations and Angieslist.com is proving to be a trustworthy resource for all consumers. We recommend that you use them before you shop for anything truly important to you. We truly appreciate your taking the time to post a review comment at Angieslist.com and we are providing this link for your convenience:
Thank you for your trust in us!
Principal Write Downs and Debt Forgiveness Changes
The Department of Housing and Urban Development (HUD) and the Department of the Treasury (DOT) announced improvements to the existing Making Home Affordable Program (MHA) and Federal Housing Administration (FHA) refinance program that will give a greater number of responsible borrowers an opportunity to remain in their homes. These improvements are developed to sustain homeownership by providing borrowers, who owe more on their mortgage than the value of their home, a chance to refinance into an affordable FHA loan. This opportunity gives borrowers who are current on their mortgage to qualify for an FHA refinance loan given that the lender or investor writes off the unpaid principal balance of the original first lien mortgage by at least 10%.
FHA NEP Highlights
FHA - Mortgage Insurance Premium Update...
Implementation of the new plan is delayed until October 1st.
After announcing last week that it was lowering upfront insurance premiums
from 2.25% to 1.0% on Sept. 7, the Federal Housing Administration said it’s pushing back implementation until October.
“Based on industry feedback and our desire to have this change implemented successfully in the marketplace, FHA will make the premium fee changes on all new case numbers effective October 4, 2010,” said Vicki Bott, Deputy Assistant Secretary for the Housing and Urban Development.
For details on the upcoming changes, see our earlier post, "Congress has passed H.R. 5981 – FHA Mortgage Insurance Changes…" Posted on August 5th, 2010