Who’s the One That Makes that Mortgage Payment? You, That’s Who.

mortgage payment

When you’re in the market to find a new home, it’s a big project, right? Potential buyers need to do a lot of homework – figuring out what size home they need, how many rooms, which amenities they need (and which they want), what area to live in, their budget, the school district, it seems like the list just goes on and on. And on.

And once all that is figured out, then they need to find the right Realtor® or the right home builder, go out and look at homes, imagine themselves living in that place and what the possibilities are. Then once they find “The Perfect Home,” there’s all that paperwork to do: Make an offer, open escrow, order inspections, check the title . . . seriously, it’s a LOT of work!

So it just makes sense that after all that effort has gone into the search, discovery, selection, and purchase agreement, homebuyers just want a “break” from all the hassle. It’s not their fault – they’re just exhausted and after all, they’ve done the hard part. Shouldn’t the rest of the whole transaction be a smooth piece of cake with really delicious whipped chocolate icing on top?

“Yes, it should,” agrees Rick Piette, owner of Las Vegas-based Premier Mortgage Lending. “However, while the tendency of most homebuyers at this point is just to turn over all the rest of the transaction to their Realtor® or builder, there’s just one more little thing they need to be aware of: The need to shop around to find the best mortgage loan.

“Look, we get it. Homebuyers just want to ‘get it done’ at this point. But by giving up just one step too soon – they may discover too late that one more hour of their time may have saved them thousands of dollars. Because yes – that’s how big the difference can be between mortgage lenders.

“When homebuyers turn their choice of lender over to the decision of their Realtor® or home builder, what they’re doing is handing their financial future over to someone who has no vested interest in the outcome of that choice,” Piette explains. “Think about it: Who’s going to be paying that mortgage each month? Certainly not them. But even worse, they may have financial incentives to steer you to a particular lender – that can put money in their pocket, by taking it (in)directly out of yours.”

That’s no exaggeration, either, as explained in more detail on Premier Mortgage’s “KnowBeforeYouOweNevada.com” website. This quick two-minute video gives a simple overview of what Marketing Services Agreements are, why they exist, who benefits from them, and how you can protect yourself from the extra costs that may be involved if you use that “recommended” mortgage lender.

“Many homebuyers may feel like they’re questioning their Realtor® or builder’s judgment if they don’t go to the mortgage lender they suggest. It can put them in a difficult place emotionally,” Piette continues. “If you think about it, you’ve already spent a lot of time working with them up to this point in choosing your home, and a relationship has been developed during that time. So you may worry there would be hurt feelings if you go against their recommendation.

“But buyers need to keep in mind that above all, this is a business transaction. The outcome will affect your finances – not theirs. That’s why you need to be smart, take an extra hour of your time, and follow three simple steps to make sure you don’t end up paying more for your mortgage loan than you should.

  1. Get a Loan Estimate from at least two different lenders. (One can certainly be the lender your Realtor® or builder refer you to, and one should be a Mortgage Broker).
  2. Compare the Interest Rates
  3. Compare the Loan Fees.

“The interest rate and the fees are the only two things that really matter when it comes to the cost of your loan,” confirms Piette. “They allow you to compare the numbers as “apples-to-apples” between lenders to see exactly how much you’ll be paying.

“Once you know that, you’re equipped to make the best choice for you. And if your Realtor® or builder disagrees with your decision – just ask them to explain why you should pay more for your mortgage loan than you need to! (That should be an interesting conversation, don’t you think?)”

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, Henderson, 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 Loan Fees and the Lowest Mortgage Interest Rates in History

mortgage interest rates

At Premier Mortgage, we completely understand that most people don’t consider a mortgage loan to be “sexy.” At least not in the same way that a new car or new home can add excitement to your life. On the other hand, the path to acquiring many of the bigger-ticket items like that doesn’t necessarily need to be exciting. It just needs to be as cost-effective as possible. (Although we would take issue with the idea that “saving money” isn’t ‘sexy’!)

Unfortunately, it seems that for all the headlines and advertisements out there about the all the reasons to buy a home today – many people still don’t seem to ‘get’ the idea that their ability to buy a home truly is within their grasp; perhaps more so than ever before.

“Why? Because at no other time in the U.S. have mortgage interest rates remained so low for so long,” explains Rick Piette, owner of Premier Mortgage Lending in Las Vegas. “Since 2011, the average 30-year mortgage interest rate has been below 5%, frequently dropping below 4% in that period.”

In fact – as the 45-year graph above shows – even those who bought a home in 1970 paid higher mortgage interest rates than those available to homebuyers today.

“Still not impressed? Then let’s look further back in time with the data from this CNBC article – which shows that mortgage interest rates have never been this low in the history of our country.

“That’s a pretty stunning statement – and it speaks volumes about the opportunities available to 2017 homebuyers,” continues Piette. “Because as we explained in detail in a recent article, even minor variations in a mortgage interest rate can raise – or lower – the cost of your loan by thousands of dollars in a very short period of time.

“However, the interest rate is only half of that equation. The other half is the fees that many lenders will charge customers simply for the privilege of obtaining a loan from their company. (Seems like a strange way to earn customer loyalty, doesn’t it?)

“Those fees can add up to literally thousands of dollars that a borrower has to pay out-of-pocket and right at close of escrow,” Piette explains. “And it’s a bit like adding insult to injury, if you ask us. At least with interest rates, a variation may cost you more money over the long-term. But with loan fees, banks and mortgage bankers make sure they get their ‘pound of flesh’ from you (so to speak) – right up front.

“That’s why it’s so important that homebuyers pay attention to both interest rates AND fees. And even more important they know that some lenders – like Premier Mortgage – don’t charge any fees at all on traditional mortgage loans.”

For those who yearn to buy a home – but think it’s beyond their financial capabilities – you owe it to yourself to make the call to one of the experienced Loan Officers at Premier Mortgage Lending. They’ve been making ‘the American Dream’ come true for Las Vegas residents who never though it could happen. And often, the very things that tip the scales from “Sorry” to “This home is yours!” are the cost savings Premier has to offer with low interest rates and No Fee Loans.

“Owning a home today is simply a smarter way to spend your money,” confirms Piette. “Stability, community, building financial security and wealth – all that and a lot more are among the benefits homeowners enjoy. So if you’ve ever even thought about the possibility, then we should talk!”

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, Henderson, 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.

Renters Ages 25-44 Moving into Homeownership

renters

Sooner or later, we all want a place to call our own. More and more, it’s beginning to look like that time has come for the next generation of homebuyers.

“A recent study reveals that as of early 2017, as many as 34 million renters aged 25-44 now had credit that made them eligible to get a mortgage loan,” states Rick Piette, owner of Las Vegas-based Premier Mortgage Lending.

“Thirty-four million. That’s a huge number. Especially when you realize that as of the end of May, the total inventory of existing homes for sale in the U.S. is only 1.96 million.

“That’s not to say, of course, that every one of those 34 million will be running out and buying a home next week. But for those who are smart and recognize the unique opportunity available to them today, it may be the perfect time to take advantage of building a financial base for both their short- and long-term goals.

“At Premier Mortgage, we’ve been working with Las Vegas residents for years, helping people and families from many different situations get into a home of their own. From those who lost their homes during the housing crash and went through a foreclosure or short sale, to finding mortgage loans for those with poor credit to overcome; and providing loans for those seeking to make the transition from renting into ownership for the first time.

“With the increase in this 25-44 age group now having the ability to qualify for mortgage loans, it’s going to have a big effect on landlords as these renters begin to vacate rental properties in growing numbers. Ultimately, this may even benefit those who continue to rent – as occupancy rates slowly decline and landlords face pressure to find new ways to retain tenants.

“While we at Premier Mortgage love the idea of helping everyone who wishes to own their own home make it a reality, we also know that for many reasons – there will always be those who need to rent and maintain flexibility in their housing situation,” Piette adds.

“But it’s important that renting also be affordable for those people, too. As we see it, this may be a positive move to help equalize the rental and ownership markets in Las Vegas. It’s definitely something we’re going to keep an eye on to see what changes transpire from these new developments.”

If you’re wondering if you are among that new group of renters who can qualify to obtain a mortgage loan, contact Premier Mortgage lending at 702.485.6600 and our experienced Loan Officers can help you discover your home ownership options. Ask about our true “No Fee Loans” that save borrowers thousands, and our real “1% Down Loans,” perfect for those who are letting the lack of 10-20% down payment savings hold them back from owning a home.

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, Henderson, 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.

Las Vegas Homeownership Rises, But Premier’s “No Fee Loans” Still Cost $0

Rick Piette, Owner of Las Vegas-based Premier Mortgage Lending
Rick Piette, Owner of Premier Mortgage Lending.

Las Vegas is heating up again – and that applies to a lot more than just the weather. In fact, the city is currently undergoing a slew of change and growth in areas far beyond the familiar gaming industry that fueled its initial fame. Opportunity is in full swing with better-than-pre-recession levels for jobs, the local economy, and the real estate market.

According to Rick Piette, owner of Premier Mortgage Lending in Las Vegas, it’s also fueling a revival of ‘the American dream’ of home ownership. “With the tremendous growth and development taking place now in Las Vegas – upwards of $15 billion – it not only brings construction work, but also jobs for supporting and complementary industries, too,” he explains. “Those jobs mean security and improved financial resources that make it possible for people to seriously consider owning a home – either again, or for the first time.”

The growth Piette is referring to is happening throughout the valley in both gaming and non-gaming sectors. It includes the addition of two major professional sports teams – The NHL Vegas Golden Knights, and the NFL Las Vegas Raiders – whose $1.9 billion stadium will begin construction soon; the $4 billion “Resorts World” casino moving forward on the old Stardust site; a $1.5 billion expansion of the Las Vegas Convention Center; and huge growth in medical services, such as the $1.5 billion Henderson Integrated Healthcare Center.

“It’s no secret – Las Vegas is back and our economy is strong. Our city has once again staked a claim to being one of the best places in the country to work, to live, to put down roots and to own a home. At the same time, people have recovered their credit and financial bearing so that now, not only are many ready to own a home again – but an entire new generation of homebuyers has come of age in the meantime.

“But the one thing I think we’ve all learned during these past years is how important it is to be wise with our finances and make sure we get real value for our money – especially with a major purchase like a home,” Piette explains. “Most people don’t realize, though, that it’s not only the home itself that’s the expense – the mortgage loan can be costly, too . . . especially if you choose the wrong mortgage lender.

“That may sound like a marketing pitch, but it is actually a fact many buyers don’t realize. The truth is, a borrower can go to two different lenders, get the exact same loan terms and interest rate – but one of those lenders will cost them – right out of their pocket – from $4,000-$8,000 or even more. Think about that: Same loan. Same interest rate. Same terms. But with one lender, you’re out thousands of extra dollars. Why? Fees. It’s all about the loan fees they charge you that go right to that lender’s own bottom line.

“At Premier Mortgage, we realize that many borrowers don’t know what to look for or which questions to ask when they need a loan. That’s why we make it a point to explain it in simple terms: To find the right mortgage loan, (1) Shop around with two or more lenders, (2) Compare interest rates, (3) Compare fees. Because in most cases, those are the only things you need to consider to make sure you’re getting the right loan for the lowest cost,” confirms Piette.

“As a mortgage broker, Premier Mortgage Lending is able to offer a true “No Fee Mortgage Loan.” That means we charge $0 for Loan Origination, Underwriting, Document and Prep fees – items that other lenders may charge thousands of dollars for. We also offer a wide variety of loans for borrowers with different financial needs – from our “One Percent Down” to our “Another Chance Nevada” loan programs – and many more.

“Remember – getting a mortgage loan isn’t like shopping for insurance,” continues Piette. “The “you-get-what-you-pay-for” concept doesn’t apply here. With insurance, you may choose to pay a higher premium to get better coverage. But with a mortgage loan, paying more only means . . . you’re paying more. Not that you’re getting a better loan. And what’s the advantage in that to you?”

If you’d like to learn about all the mortgage loan opportunities available to you from locally owned, Las Vegas-based Premier Mortgage Lending – including their true “No Fee Mortgage Loan” – visit their website at www.PremierMortgageLending.com, or call (702) 485-6600 to schedule an appointment.

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, Henderson, 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.

Exactly What Does a Mortgage Loan Cost You?

How about today, we talk about real numbers? We know you see a lot of mortgage company headlines and advertisements that talk about how they’ll give you “the best interest rates, the best service, the best” – well you name it, they’re always “the best” – have you ever noticed that?

“Of course, it’s one thing to “say” you’re the best choice for a mortgage loan – but it’s something entirely different when you back up that claim with facts,” explains Rick Piette, owner of Las Vegas-based Premier Mortgage. “And backing up that claim is what we’ve been doing for a long time at Premier. You can see it in the loan programs we offer, the videos we created to make it easier for people to understand how mortgage loans work, and in the testimonials and repeat business we receive from our customers.

“Yet even with all that, sometimes it all gets so confusing that you just want sit down and compare the actual dollars and cents to figure it out for yourself, right? So we’ve prepared a couple of “apples-to-apples” (so to speak) chart that helps home buyers see exactly how Premier Mortgage Lending stacks up against other lenders.

“Let’s start out with the home – and set up the parameters that we’ll use to compare,” continues Piette. “Like this:

Home Purchase Price: $250,000
Loan Amount (90%): $225,000
Length of Loan: 30 years

“So far, it’s pretty simple. Let’s see if we can keep it that way.

“Now, let’s consider interest rates –so that you can see how your monthly principal & interest payment would change at different rates. Why does this matter? Because not all lenders charge the same interest rate. That’s the reason at Premier Mortgage, we tell our customers the two most important things to compare when shopping for a mortgage loan are this: The fees and the rate. (And trust us, we’ll get to the fees in a moment.)

“For a 30-year, $225,000 loan, let’s assume a current mortgage rate of 4.00%. That means your payment would be $1,074.18 per month.

But the table below shows you how much that payment amount increases as the interest rate rises. Not only in the cost to you each month, but it shows how that cost adds up over time – for 5, 10, 20, or 30 years (depending on how long you live in that home).

Interest RatePaymentIncreases ByOver 5 YearsOver 10 YearsOver 20 YearsOver 30 Years
4.25%$1,106.86$32.68/month$1,960.80$3,921.60$7,843.20$11,764.80
4.50%$1,140.04$65.86/month$3,951.60$7,903.20$15,806.40$23,709.60
4.75%$1,173.71$99.53/month$5,971.80$11,943.60$23,887.20$35,830.80
5.00%$1,207.85$133.67/month$8,020.20$16,040.40$32,080.80$48,121.20

“Now you can see that even a slight change in the interest rate can end up costing you a lot of money – right out of your pocket each month – as well as over the long-term.

“From here, let’s take a look at the other most important number to compare: The Fees.

“The reason that the cost of Fees can vary from one lender to another is usually because of the type of lender you choose. On our blog, we’ve written several articles in the past that explain the difference between Banks, Mortgage Banks – and Mortgage Brokers (Premier Mortgage Lending is a Mortgage Broker, by the way). We invite you to read more about how those differences can affect you where it counts – in your wallet.

“But for now, let’s consider a few of the most common fees that borrowers are charged – and you’ll find these figures on the Loan Estimate that your lender provides to you.

“The table below shows you what those fees are called, and what the typical charges are for a Bank or Mortgage Banker, vs. what Premier Mortgage charges on a standard mortgage loan. (Keep in mind, these are fees your lender charges you at close of escrow – just for the ‘privilege’ of lending you money and charging you interest for it.)

The FeesBank or Mortgage Bank CostsPremier Mortgage Lending Costs
TOTAL:$3,245 - $5,945 + Up$0.00
Loan Origination Fee (1%-2%)$2,250 - $4,500$0.00
Processing Fee$495 - $695 & Up$0.00
Underwriting Fee$250 - $500 & Up$0.00
Document Prep Fee$250 + Up$0.00

“As you can see, for a $225,000 mortgage loan – these fees alone can cost a consumer thousands of dollars in unnecessary expense that comes right out of your pocket. Considering all the other legitimate costs that homebuyers are required to pay at closing such as recurring costs – like taxes, insurance, etc., and closing costs – like title search, title insurance, flood determination fee, transfer tax, etc.; when lenders choose to add such expensive and arbitrary costs, well . . . we just don’t think that’s right,” explains Piette.

“The bottom line is that despite the ‘smoke and mirrors’ that some lenders like to confuse you with when talking about their mortgage loans – any borrower can still make their way through it all to find the real numbers – which leads them to best deal. And if they take just a few minutes to educate themselves – they can save thousands of dollars in the process,” Piette continues.

“At Premier Mortgage, that’s what we help our customers do every day. No smoke. No mirrors. Just the facts, and the reputation to back them up.”

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, Henderson, 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.