The Mortgage Guru

National Overnight Averages                      Today                  Last Week

30 yr fixed                                                  5.35%                  5.40%

15 yr fixed                                                  5.04%                  5.10%

5/1 ARM                                                    5.61%                  5.75%

30 yr jumbo fixed                                       6.91%                  7.01%

5/1 jumbo ARM                                          6.01%                 6.05%

Good news for those of you in Las Vegas who are in the market to refinance your current mortgage or purchase a new home! Mortgage rates fell moderately this week.

The average 30 year fixed rate fell 11 basis points (BPS)

The average 15 year fixed fell 10 BPS

The average 30 year fixed jumbo rate fell 16 BPS

And the winner is the 5/1 ARM loan which slid 17 basis points this week.

These low rates combined with low housing prices due to short sales and foreclosures all over the Las Vegas valley makes now a great time to purchase or refinance your home.    If you would like a free mortgage analysis contact me directly by e-mail at mgarnes@garnesmortgage.com or directly by phone at 702.526.3133.  There is no telling how long these rates will last so lock in a low 30 year fixed rate now before they are gone…

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I will be conducting a series on mortgage loan programs and the differences between loan programs. I will do my best to keep it basic; any technical questions or questions pertaining to your individual situation may be directed to me via phone or e-mail…

Given the fact interest rates have been holding near historic lows for some time now and will only go up from here I will start with fixed rate mortgages since this makes the most sense given the current conditions.

The fixed rate mortgage is the most common type of mortgage program where your monthly payments for interest and principal never change. Property taxes and homeowners insurance may increase, but generally your monthly payments will be very stable.
Fixed-rate mortgages are available for 30 years, 20 years, 15 years and even 10 years. There are also “bi-weekly” mortgages, which shorten the loan by calling for half the monthly payment every two weeks. (Since there are 52 weeks in a year, you make 26 payments, or 13 “months” worth, every year.)
Fixed rate fully amortizing loans have two distinct features. First, the interest rate remains fixed for the life of the loan. Secondly, the payments remain level for the life of the loan and are structured to repay the loan at the end of the loan term. The most common fixed rate loans are 15 year and 30 year mortgages.
During the early amortization period, a large percentage of the monthly payment is used for paying the interest . As the loan is paid down, more of the monthly payment is applied to principal . A typical 30 year fixed rate mortgage takes 22.5 years of level payments to pay half of the original loan amount.

You can reach Matt Garnes directly at 702.526.3133 or 866.427.6375  e-mail at mgarnes@garnesmortgage.com or matt@BuyLasVegasRE.com

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Until the birth of the 80/20 mortgage loan FHA was a great option for  first time home buyers or those with little to put down. Now that these  80/20 loans have gone away the FHA mortgage loan is making a huge  comeback. It’s little surprise here in Las Vegas Nevada given the fact  it is the least amount of money down you can get away with as well as  maintaining outstanding interest rates. First time home buyers may even  qualify for DPA or down payment assistance from organizations such as  Nehemiah, AmeriDream etc. There are FICO requirements to qualify for  this program. FHA offers several program options such as Fixed Rate Mortgages  offering 10, 15, 20 year fixed (temporary buydowns not allowed) or 25  and 30 year fixed rate mortages which do allow for a 2-1 temporary  buydown.
Eligible borrowers include U.S. citizens and permanent resident aliens  (non-permanent resident aliens may qualify) and non-occupant co-borrowers.
The properties you may obtain an FHA mortgage loan for include 1-4 unit  properties, PUDs, Modular and Manufactured Homes (double-wides only)
The current FHA loan limits for Clark County Nevada which includes Las  Vegas, Henderson, Green Valley, Summerlin and surrounding areas is $400,000. With so many REOs or bank owned properties on the market in the Las Vegas, Henderson Nevada areas this loan limit will allow you to purchase a lot of house!!
A very nice feature with the FHA Mortgage Loan is that the seller may contribute up to 6% of the loan amount towards borrowers closing costs. The 3% down payment required per FHA guidelines may come from borrower’s own funds, it may be a gift from a blood relative or it may come from a DPA organization as previously mentioned.

It looks as though rates will not go any lower and may hold for a few more months but I would expect nothing but rate increases from that point on. As more home buyers begin to snatch up the REOs in record numbers now is the time to begin looking for home before you miss the boat…

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