Tag Archives: Mortgage Rates

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.

What a Year It’s Been for Homeownership

looking back at the housing market

All the news and events going on in the country seem to have made a lot of us gaze back on all that’s happened in 2016 and think “Thank Goodness It’s Almost Over!” We can understand that. But it’s precisely because of that sentiment that we’d like to bring up some of the good news from the past year that we reported on in our blog posts about the state of the housing market. What’s more, as far as we can see, there’s good reason to believe that there 2017 will be great, too. Take a look and see what you think.

The Las Vegas Housing Market Has Returned
In fact, not only the housing market, but the economic status of our exciting city has bounced back from the years immediately following the Great Recession. For a long time, it seemed that the country had given up on Las Vegas – but they didn’t count on Las Vegas not giving up on itself. But we’re back, baby! And with the lowest unemployment rate since August 2008, the new T-Mobile Arena and our very own NHL hockey team (Go, Vegas Golden Knights!). Then there’s the opening of major new hotel/casinos and the start of more, new medical facilities, the possibility of an NFL team on the horizon (and did we mention IKEA?). With all that came people, families, and jobs. And following close on the heels of everything was a rise in the construction and sale of new homes, the resale market ticked up, and foreclosures came down. Plus, the year’s run of record-low interest rates helped homeownership return to numbers that naysayers never believed would happen again. Additionally, the slow and steady rise of real estate values in Las Vegas has helped many long-time homeowners escape the ‘underwater borrower’ scenario and begin to return to firm financial footing, too. In short – it’s clear that people are rebuilding their lives in Las Vegas, and thanks in no small part to the entrepreneurial spirit of our residents.

Mortgage Standards Loosened Up
Following the economic crash (can you believe it was nearly 10 years ago?) – banks and other lenders tightened their belts and made the task of obtaining a mortgage loan much more difficult than it had ever been. Partly due to new regulations, partly due to economic and social pressures – the fact is, the restrictions put in place were at such a high threshold that getting a loan became an onerous task – even for those who were gainfully employed and had good credit scores. As for those who had been financially harmed by the housing crisis, the thought of owning a home again seemed an impossibility. But 2016 saw mortgage lenders nationwide begin to ease their lending guidelines – with FHA and VA following that lead, as well. As a result, and with the passage of time that resolved many credit issues incurred due to the recession, more and more people are able to escape the rental market, invest in themselves and their family, and begin planning for the future by buying a home of their own.

Millennials Join First-Time Buyers in Huge Numbers
We mentioned this in a recent blog post, but it bears repeating here: According to recent reports from the National Association of Realtors® and Zillow – the market share of first-time buyers has risen to 35% of all homes purchased. (Big news when so many headlines reported a lack of homes in this price range!) Even more notable is that 61% of those buyers were under the age of 35. Many new statistics have confirmed this trend and further indicated that not only weren’t those Millennials going to be living in their parents’ basement forever (did you really think they would?) – but many were actually choosing to wait to buy until they could start with what would normally be considered a “2nd move up home” (which leaves that many more ‘starter homes’ available for the buyer’s market).

Since the election, many industry experts forecast that the 2017 housing market will continue to grow, but at a more moderate pace (which is something we’re all in favor of, quite honestly). Western cities will continue to lead the nation in home sales and pricing. Interest rates are anticipated to rise slightly, but since 2016 saw the record lowest home mortgage rate occur in August 2016, that’s not the worst news we’ve heard all year!

All things considered, Las Vegas and its housing market have bright futures to look forward to – both in 2017 and beyond. The even better news – is that Premier Mortgage is here to help homebuyers get the most value for every dollar. How? By offering “No Fee” loans that make sure you spend less of your hard-earned cash towards the cost of getting your mortgage loan – and more into the home you’re buying.

Find out more about Premier Mortgage Lending’s true “No Fee” mortgage loans, as well as their many other products and services by calling (702) 485-6600. Their experienced loan officers are there to help with your questions and can assist you in navigating from signed purchase agreement – to getting the keys to your new 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.

Mortgage rates for 15-year fixed-rate loans have reached an all time low

Today brings great news to homebuyers needing mortgage financing as rates for 15-year fixed-rate loans have reached an all time low. This news is a breath of fresh air for today’s homebuying market after the recent recession and subsequent increase in foreclosure rates.

Mortgage rates are not only falling for 15-year fixed-rate loans, they are falling for all mortgage types. However, more people will opt for a 15-year fixed-rate loan, due to the lower balance held a shorter-term loan. The balance on a shorter-term loan is less than the balance on a 30-year fixed loan by an average of $75,000.

A mortgage with a shorter term “provides more protection against a downturn in home prices, since a 15-year loan builds equity more quickly,” according to Keith Gumbinger, Vice President of mortgage information service, HSH Associates.

Bankrate.com analyst Polyana da Costa notes that he wouldn’t be surprised if mortgage rates go even lower.

Premier Mortgage Lending is excited for our customers who will now find it easier to get back in the real estate market with these attractive rates.

To read more on this article, click here.