Borrowers benefit from Premier Mortgage Lending’s ‘no fee’ mortgages

Looking beyond the interest rate and reading the fine print before signing on the dotted line can be financially advantageous as the true cost can differ due to varying lender fees.

“Just because Lender A and Lender B are both offering the same interest rate, it does not necessarily mean that both mortgages will actually cost you the same in the long run because different lenders charge different fees and these can add up quickly,” said Rick Piette of Premier Mortgage Lending.

“To get a better idea of which loan is a better deal, look beyond the interest rate and find out what’s known as the APR or the ‘annual percentage rate’ because the APR includes these various lender fees. Making an informed choice can literally save you thousands of dollars.”

According to Piette, the most efficient way to shop around for a mortgage is to meet with an experienced full-service lender or broker that offers a wide variety of lending programs. Full-service lenders like Southern Nevada-based Premier Mortgage Lending is not connected to a specific bank and can connect potential borrowers to different lending institutions, which helps ensure that they find the lowest-cost program for which they are qualified.

“Hundreds of Southern Nevadans are discovering that Premier Mortgage Lending can connect them to ‘no fee’ conventional mortgages with low APRs for both home purchases and refinancing,” Piette said. “Earlier in October, one of our clients saved almost $7,000 on mortgage fees by choosing us over another lender. Why would anyone want to pay thousands more for a mortgage, when you don’t have to?”

Piette explained that some mortgage fees are the same, regardless of the lender, like sales tax based on the home’s purchase price and recording fees. Home inspection fees are competitive among companies. However, other lender-determined fees can vary greatly.

“So, what does all this mean to home buyers? It means that now, more than ever, you should shop around for a home mortgage with a variety of lenders and consider working directly with mortgage brokers. Seeking out a mortgage broker like Premier Mortgage Lending can help you uncover the best deal because brokers must offer borrowers the lowest possible interest rate and fees for which they qualify,” Piette said.

“Mortgage brokers are now federally regulated in what they can charge borrowers in total compensation, but the mortgage banks, through the use of secondary market profits, have no limits on what they can charge. This gives us brokers a tremendous competitive advantage when pricing your loans.”

The first step to take in “shopping around” and determining one’s mortgage program is to meet with a full-service lender and go through the mortgage prequalification process. During this process, prospective borrowers learn about the mortgage programs for which they may be eligible, the amount that they can borrow, and the out-of-pocket and overall costs associated with different mortgage programs.

“Because our hands are not tied to only one bank’s programs, we help you shop around for the best deal on the best program that fits your individual needs, some of which have no fees. Whether you are looking for a conventional or jumbo loan, or are interested in FHA and VA programs, we can help,” Piette explained.

“Even if you’ve experienced a recent short sale or foreclosure you may still be able to purchase a home because of newer lending programs like Premier’s www.AnotherChanceNevada loan program which offers credit-challenged borrowers a second chance at buying a home.”

For additional information or to schedule an appointment for mortgage prequalification or refinancing, call Premier Mortgage Lending at 702-485-6600 or visit www.AnotherChanceNevada.com.

Premier Mortgage Lending, NMLS #393282, is located at 701 N. Green Valley Pkwy., Suite 125, Henderson, 89074. The full-service lender is a member of the Las Vegas and Boulder City Chamber of Commerce, Better Business Bureau and Southern Nevada Home Builders Association, as well as an affiliate member of the Greater Las Vegas Association of Realtors.

 

‘No fee’ mortgages reduce out-of-pocket costs

Changes in lending regulations combined with no-cost loans and fewer all-cash home buyers benefit Southern Nevadans in the market to buy a home.

“Many homes buyers have lowered their out-of-pocket mortgage costs thanks to new Consumer Finance Protection Bureau’s mortgage regulations that took effect earlier this year and through Premier Mortgage Lending’s ‘no fee’ mortgage program,” Rick Piette of Premier Mortgage Lending said. “The ‘3 percent cap rule’ placed a limit on the upfront fees charged by lenders to no more than 3 percent of the mortgage balance. This has reduced the cash that you must bring to the table in order to close on your home.”

Home buyers who “shop around” for their mortgage have discovered even more savings, especially those who have turned to mortgage brokers who offer multiple mortgage programs from different banks and private lenders.

“Mortgage brokers, like Premier Mortgage Lending, can help you uncover the best deal because we work with a variety of lenders and must offer borrowers the lowest possible interest rate and fees for which you qualify. We are federally regulated in what we can charge borrowers in total compensation, but the mortgage banks, through the use of secondary market profits, have no limits on what they can charge you. This gives us brokers a tremendous competitive advantage when pricing your loans.”

Among the many programs that the full-service, Henderson-based lender can offer qualified borrowers are “no fee” mortgages.

“Southern Nevadans who are looking to save out-of-pockets costs of a new mortgage or in refinancing their current one have been impressed by our new ‘no fee’ mortgage program. Through this program, you’ll still have to pay the typical mortgage fees which are the same regardless of the lender, like sales tax based on the home’s purchase price, recording fees and a home inspection. However, this program can help you save literally thousands of dollars because you avoid other fees that some lenders tack on,” Piette said.

In order to compare the actual cost of mortgages, the longtime Las Vegan advises his clients to compare the APR or the “annual percentage rate” rather than the interest rate because the APR incorporates these various fees.

According to Piette, the first step in finding the “best mortgage deal” is to participate in the complimentary prequalification process with a full-service lender. In addition to connecting qualified borrowers to a “no fee” mortgage and other programs, Premier Mortgage Lending also offers Another Chance Nevada, a program that offers credit-challenged borrowers a second chance at purchasing a home, including those who recently experienced a short sale or foreclosure.

“Becoming prequalified for a mortgage not only helps you understand your mortgage options and how expensive of a home that you may buy. It also gives you an edge in our valley’s competitive real estate market,” Piette said.

“Now is really a great time to buy a home in the Las Vegas Valley because our housing market has stabilized and many of those investors and home flippers have moved on with their all-cash offers,” he said, citing a Greater Las Vegas Association of Realtors report that showed all-cash sales were just over 34 percent in September, a tremendous decline from February 2013 when over 59 percent were cash sales.

“This is great news to those who want to buy a home to live in and, like most typical people, need a mortgage to do so. Having a mortgage prequalification letter in hand is essential because it shows the seller that you have done your research, you know your purchase power, and that you’re serious about buying their home.”

For additional information or to schedule an appointment for mortgage prequalification or refinancing, call Premier Mortgage Lending at 702-485-6600 or visit www.AnotherChanceNevada.com.

Premier Mortgage Lending, NMLS #393282, is located at 701 N. Green Valley Pkwy., Suite 125, Henderson, 89074. The full-service lender is a member of the Las Vegas and Boulder City Chamber of Commerce, Better Business Bureau and Southern Nevada Home Builders Association, as well as an affiliate member of the Greater Las Vegas Association of Realtors.

Are restrictive standards and new mortgage rules affecting home sales?

New mortgage standards have mandated a four-year waiting period for most home loans, to “keep risky buyers on the sidelines.” This nearly doubles the time that some homeowners, who experienced short sale or foreclosure, must wait to qualify for a new loan. Is this keeping the risk out of home buying or homeowners?

Rick Piette, Premier Mortgage Lending, said he believes the new standard will hurt closings, though already-tight regulations will head off big cuts. Even before the four-year waiting period, buyers with recent mortgage troubles had to put 20 percent down. And in Las Vegas, where the effective un­employment rate hovered near 25 percent at the recession’s nadir, not many buyers have the savings or home equity to make the cut.

The National Association of Home Builders asked builders if they had lost sales over the past couple month directly relating to new mortgage qualifications. Eighty-three percent said yes and it was estimated that 18,700 new-home sales were lost because of it.

Premier Mortgage Lending believes there are thousands of Las Vegans who deserve the opportunity of owning homes of their own. For those who have lost a home to short sale or foreclosure, we are your second chance at homeownership!

For additional information or to schedule an appointment for mortgage prequalification or refinancing, call Premier Mortgage Lending at 702-485-6600 or visit www.AnotherChanceNevada.com.

Premier Mortgage Lending, NMLS #393282, is located at 701 N. Green Valley Pkwy., Suite 125, Henderson, 89074. The full-service lender is a member of the Las Vegas and Boulder City Chamber of Commerce, Better Business Bureau and Southern Nevada Home Builders Association, as well as an affiliate member of the Greater Las Vegas Association of Realtors.