Tag Archives: Lender

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

“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.

1% Down Mortgage Loan Makes Renting a Thing of the Past

One Percent Home Loan

Let’s face it, owning a home really is a big deal – and not only for the financial benefits it can bring. (Although really, we think that should be reason enough!) There’s also a significant emotional boost when you’re handed the keys to your very own home. There’s an incredible sense of accomplishment, of knowing you’re providing a secure foundation for your family, feeling a part of the community, and having the ability to build the life you choose. It can literally affect everything else going on in your life and that of your family.

But surprisingly, many people just make the assumption that buying a home is something that’s out of their reach. In fact, some studies show as many as 50% of renters would prefer to own rather than paying a landlord each month – but they never even inquire if they’re eligible for a home loan.

To Rick Piette, owner of Las Vegas-based Premier Mortgage Lending, that’s just giving up on your dream. “Sometimes, people don’t think their credit is good enough; or often, they think it means saving up for a big down payment plus a lot of closing costs – and they’ll just figure they’ll never be able to come up with that much money at once.”

But now there’s a way to get into a home without that big cash outlay. In fact, buyers can now buy a home for about the same as the cost of moving into a rental apartment or home – with Premier Mortgage’s new “Conventional One Percent Down with Equity Boost” mortgage loan.

“This loan program is successfully turning many renters into homeowners. And if you look at the numbers, it’s easy to see why,” explains Piette.

“Imagine finding a home to rent for $1,500/month. By the time you pay the first and last months’ rent, plus security, cleaning, pet, and other deposits, it’s probably going to cost you $4,000+ just to move in.

“But what if instead, you buy a $285,000 house. Your down payment will be $2,850, and your total monthly mortgage payment (with taxes and insurance) will be about $1,750. However, since you gain tax advantages by owning, your tax-adjusted payment (assuming a typical 25% tax rate) would be under $1,400 per month. That means you’ll actually save money on both your initial investment cost and your monthly payment.”

“It gets even better, though,” Piette reveals. “It’s a 30-year, fixed conventional loan, so the mortgage payment never changes. It also falls within our “No Fee” loan structure, which means borrowers pay $0 for Loan Origination, Documents, Underwriting, and Prep fees.

“And the icing on the cake? At close of escrow, the lender contributes an additional 2% down, so as soon as the buyer is handed the keys, they have 3% equity ownership, not just 1%.”

“The bottom line is that our 1% Down program takes a lot of the “scary” out of getting a mortgage loan,” Piette continues. “And when you compare the numbers of renting vs. buying with this loan, it’s tough to come up with an argument not to buy a home!”

To learn more about the qualifying conditions for this loan, visit Premier’s website at www.1PercentLoan.com. For additional information or to schedule an appointment to discuss Premier Mortgage Lending’s many other available loan programs, call (702) 485-6600. Or, apply online at www.premiermortgagelending.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, 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.

Homeownership in Las Vegas is Still Affordable – and Now Even Easier

homeownership in Las Vegas

In a city with so much wide open space, it’s not surprising that Las Vegas evolved “out” instead of “up.” Even though recent years have seen resorts and hotels on the Strip head more in the direction of hi-rises (because there’s only so much Las Vegas Strip real estate) – our city is so unique and diverse that we don’t have the same housing limitations as other places (think San Francisco and New York).

“That’s one of the reasons that homeownership in Las Vegas is still affordable. Jobs aren’t all concentrated in one section of the city, they’re all throughout the valley,” explains Rick Piette, owner of Las Vegas-based Premier Mortgage Lending. “That makes it possible for people to take advantage of reasonable home prices that can be found in all corners of Las Vegas. And having a place to call your own is still not only highly desirable – it’s doable.”

In fact, it’s even more doable now than it has been recently – with the introduction of Premier’s new 1% Down Loan Program.

As Piette explains, “Right now, there are two huge demographics entering the home buying market: Millennials, with some 61% of prospective home buyers this year under the age of 35; and Baby Boomers – those 55+ who are making significant life changes that include relocating, downsizing, and/or retirement plans.

“For a long time, many assumed that younger generations would bypass homeownership opportunities altogether, but obviously, that’s not the case,” continues Piette. “Why? For the same reasons that applied for previous generations: Marriage, family, space, privacy, financial security.”

“But there has been one hurdle many have had to overcome: Saving up a 10-20% down payment to qualify for a loan. That’s caused many to delay their desire to buy a home for years. However, I’m happy to announce that now – here in Las Vegas – Premier Mortgage has removed that obstacle. Our new 1% Down Loan Program is changing lives and bringing the pride of homeownership to buyers of all generations,” Piette explains. “And perhaps most surprising to many is that this loan really is exactly as it sounds.

“Not only does it require only 1% of the purchase price as a down payment, but that amount can even be a gift – which means there’s no need to document the long-term accumulation of a large down payment in your bank accounts. Plus – and this part is real, even though it sounds hard to believe: The lender contributes an additional 2% down, so when you close escrow you immediately have 3% equity.

“It’s also a 30-year, fixed conventional loan – so there’s no adjusted payments over time,” continues Piette. “Your mortgage payment is a firm amount. And by taking advantage of the current low interest rates – buyers realize they can even afford to buy more home than they might have thought.

“Even better – buyers are finding they can buy and own a home for less money than they would spend on just the rent and deposits needed to lease a home. That’s an eye-opening discovery for most people!”

Learn more today about Premier Mortgage Lending’s 1% Down Loan Program by visiting www.1percentloan.com. You’ll discover more details about the benefits and requirements of this program there – then call us at 702.485.6600 and we’ll help you determine if you quality for this great opportunity.

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.

All That Stands Between You and The Home You Want is 1%

1 Percent Down

Imagine if only one month’s rent could get you into a new home. Can you picture it? You and your family – living in a home of your own? No more landlords. No more apartments. No more worrying about rent increases. And finally being able to hang a picture, paint a room, or plant a tree without getting “permission.”

If that sounds like a dream come true – hold onto that thought. Because now, Premier Mortgage can make that particular dream a reality.

“We now have a 1 Percent Down loan program that truly is exactly that,” reveals Rick Piette, owner of Las Vegas-based Premier Mortgage Lending. “And not only are we helping people become homeowners with this program – they’re also gaining an extra 2% equity at close of escrow.

“It all sounds a bit too good to be true, I know. And to be honest, when I was first presented with this loan program, I spent a lot of time playing “Devil’s Advocate” – trying to find out what the catch was. But I’m here to say it’s the real deal. No tricks, no last-minute surprises, no catches at all. It works exactly as it’s described – and buyers are taking advantage of this loan program with us every day.

It’s called the “Conventional 1 Percent Down With Equity Boost Program” – and here’s how it works:

• The Buyer’s down payment is 1% of the purchase price. (Example: $250,000 home = $2,500 down.)
• The Lender puts an additional 2% down on your home on your behalf. ($5,000.)
• So when you close escrow, you’ll instantly have $7,500 of equity in your home – not just $2,500.
• This loan also falls under our “No Fees” program – which means $0 for Loan Origination, Document, or Underwriting Fees. (With most lenders, this can add up to 2% of the purchase price to your closing payment.)

“Those are some pretty amazing benefits,” states Piette. “And the most common question I get from customers is “Why? Why would the lender put 2% down, too?”

“The answer to that is simple: The lender charges an interest rate slightly higher than the going market rate – about .25%. And because this program results in more loans being made – they recoup their investment from that additional interest.

At a time when interest rates are still hovering just above record lows, and ownership rates continue to rise, that additional .25% interest is an easily affordable way to secure a home for you and your family and continue to build equity over time.

As Piette explains, “Say you were to purchase that home mentioned above for $250,000. With 1% down, and a loan amount of $249,000, at 4.5% interest your principal and interest payment would be $1,229. At 4.75%, the payment would be $1,265.

“That’s a difference of only $36/month. When you consider that (a) most rental rates cost more than a mortgage loan for the same property, and (b) it might take you 1 to 2 years (or even more) to save the money to put 5% down to buy a home (in this case – $12,500 – and that’s if prices and interest rates don’t rise in the meantime) – it simply doesn’t make sense not to take advantage of this loan program,” concludes Piette.

To find out more about the “Conventional 1 Percent Down With Equity Boost” loan program with Premier Mortgage, visit www.1percentloan.com, or contact Premier Mortgage Lending directly at 702.485.6600.

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.

How New Mortgage Rules Directly Affect You


Questions You Should Be Asking Your Lender


You may recall that was the sound of the Las Vegas economy for decades – and it was especially true for real estate. When Rick Piette, founder of Premier Mortgage Lending, first arrived in Southern Nevada some 30+ years ago, he was among those who rode the wave along with everyone in the valley. Of course, it couldn’t last forever (we now know) – and it all changed in 2007 when the entire U.S. housing market came to a screeching halt.

We’re now eight years past when the crisis began, and the Las Vegas community has survived – and changed. A great deal of that change came from new laws and regulations created to keep the same domino effect from ever happening again. And Rick Piette is among those who believe that is a very, very good thing.

“Making certain that the vast majority of those who live on “Main Street U.S.A.” get a fair shake with their new mortgage loan was, to me, the most important part of the Dodd-Frank Consumer Protection Act,” states Piette. “A large portion of that Act dealt specifically with mortgage loans, but much of the public isn’t aware of how these new regulations directly affect them. That’s one of the things that we want to help homebuyers understand – because knowing what to look for and what to ask – can literally save them thousands of dollars.”

What Rick Piette is referring to are the new mortgage rules that came into effect in 2014. One of these rules puts a ‘cap’ on how much a Mortgage Broker can make on a loan, and allows that fee to be paid by the lender to whom the loan is brokered – not the consumer.

“That might sound a bit confusing for some buyers,” concedes Piette. “But here’s the thing: It doesn’t matter if you’re looking for your first mortgage loan, or you’ve had many in the past. These rules have now put the control over the cost of a loan right into the buyer’s hands. As far as I’m concerned, that’s exactly where it belongs.”

As a Mortgage Broker, Premier Mortgage Lending not only adheres to the new regulations, they embrace them. While banking institutions and mortgage bankers are not restricted in the same way when it comes to loan origination, document processing, or other ‘junk’ fees – Piette has chosen to follow the path that delivers that fair shake to homebuyers.

According to Piette, “There’s no ‘smoke and mirrors’ here; no false claims designed to lure customers with promises that can’t be kept. Our company operates on a very simple principle: Our traditional mortgage loan products pass on literally zero costs to the buyer. Our fees are capped by law and paid directly by the lender – and that is how buyers save thousands of dollars on our mortgage loans.”

“Our Fee Worksheet states it clearly,” he continues. “There is literally no charge for Loan Origination, Processing, Underwriting, or Document Fees – that’s $0. But for the exact same loan from another lender – with the same loan amount, interest rate, loan type and duration – buyers will typically find fees totaling from $3,000 – $7,000 or more. Many of our customers are simply stunned at the difference.”

In truth, Rick Piette encourages his clients to shop around for the best loan. And if they find one, “I’ll tell them to take it,” he confirms. “Why would you buy a banana for $5, when you can get the same one for 50-cents? It’s the same logic.”

That’s a philosophy that everyone at Premier Mortgage Lending adheres to: The customer deserves the best loan available, and the one that will keep as much of their own money as possible in their own pocket. Even if that means they go elsewhere. “Because the most important thing to us is that buyers know their options, what rights they have, and the right questions to ask every lender,” he continues.

Some might question why Premier Mortgage Landing would choose this course – when so many other lenders could have, but didn’t. “Premier Mortgage has always worked hard to provide great service and products to our customers. Being able to provide a tangible, easy route to potentially save large sums of money is simply a perfect fit for our company. It really matters to us that we can help homebuyers achieve their dream more affordably. We believe that a large part of Las Vegas’ economic recovery lies in getting people back into homeownership, and our No-Fee loan program can help make that happen.”

It does raise the question: How much IS that banana worth?

New No Fee Mortgage Can Save Homebuyers Thousands In Closing Costs

Rick PiettePurchasing a home will probably be one of the biggest and most expensive decisions in one’s life. You want to buy at the lowest cost, and the seller wants to sell at the highest price. Discovering the best mortgage deal can help home buyers to save thousands of dollars at closing time.

“Buying a home can be nerve-wracking because of all the paperwork and the money that’s involved. Finding the right home that meets your needs for a good price can be tricky, and sifting through all of your mortgage options in search of the best deal can be downright confusing,” said Rick Piette of Premier Mortgage Lending.

The first step in the home buying process, after selecting a Realtor, is getting a “pre-qualification letter” from a mortgage lender.

“Normally your Realtor will guide you to this first mortgage source. With ‘pre-qual letter’ in hand, you’ll now be able to go home shopping,” Piette said.

“But most people get so caught up in the home buying process – and don’t realize that they still need to shop for the best mortgage deal – a step that can save you thousands. You are led to believe that the loan officer who issued your pre-qual letter has to close your loan … but that is just not true.”

Piette encourages home shoppers and those thinking of refinancing to meet with a full-service mortgage broker like Premier Mortgage Lending, in addition to mortgage bankers, to become educated of all of their financing options.

“A real advantage to working with a mortgage broker is that you can obtain a home loan with no lender fees. Also a broker can connect you to multiple lending institutions with a multitude of loan products that have varying interest rates and costs. To find the best mortgage deal for your specific circumstances, take your time to compare multiple programs and their different interest rates, APRs, monthly payments for different loan amounts, and out-of-pocket-closing-cost scenarios. If you do not understand something, just ask,” Piette said, adding that his company connects borrowers to multiple lending programs including the popular no-fee traditional loans as well as second chance financing for those who have experienced a short sale or foreclosure.

“With all of this information in hand, you can make an educated, financially sound decision,” he said. “For obvious reasons, our no fee mortgage is a popular choice because its out-of-pocket costs are significantly less and we don’t charge ‘junk fees’ like others do.”

The price difference and “junk fees” can be found in the “origination charges” – one of three types of charges found in your good faith estimate. “Origination charges” can vary between lenders, unlike the “prepaid charges” (taxes, insurance and homeowners association fees) and the “title and escrow” charges which will end up to be the same regardless of the lender chosen.

“Most lenders charge one percent of your loan amount for the origination fee. If you look at your mortgage paperwork, you may notice that it’s more than the typical one percent because some lenders tack on ‘junk fees’ that are sometimes listed as mortgage processing or underwriting fees,” Piette said. “You don’t have to pay an origination fee or those ‘junk fees.’ You can save money by shopping around for a lender that doesn’t charge them like Premier Mortgage Lending.”

Piette explained that brokers’ origination fees are now considerably less than banks or mortgage bankers because 2014 federal regulations capped what mortgage brokers can charge consumers as part of the Dodd-Frank Wall Street Reform and Consumer Protection Act.

“These new rules are great for the consumer because it can save you money on one of the biggest purchases that you’ll ever make in your life. Where you get your mortgage loan does not really matter. What matters is finding the home that’s right for your family and not paying any more than you have to for your home or your loan,” Piette said.

The first step in finding the best loan deal is completing the complimentary mortgage prequalification process and analyzing the paperwork that is provided.

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

Premier Mortgage Lending is not a ‘hard money’ lender

A question we at Premier Mortgage Lending are frequently asked is:

I have friends who took out one of those ‘hard money’ loans and they ended up losing their home. Could that happen to me?

Answer: We do not consider ourselves to be a ‘hard money’ lender or a predatory lender. Our rates are normally substantially below “hard money” rates, and all of our loans have NO pre-payment penalties. You can pay off your loan at any time without penalty or additional fees.

Contact us today for more information on 702-485-6600 or by clicking here.