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Mortgage originations slow in Las Vegas

Rising interest rates and price appreciation are slowing mortgage originations in Las Vegas, but a growing percentage of homeowners here are bucking the national trend by refinancing their homes and getting home equity lines of credit, according to a research firm. The interest rates surpassed 5 percent for the first time since the downturn of the market in October 2008, when rates were 6.5 percent, she said. Someone with a credit score in the mid-600s can get a rate of 5.375 percent with a 5 percent down payment. “People trying to buy homes are running into problems because it’s cutting into their affordability,” Gatling said. It is normal during this time of year for the market to slow down, but with rising rates and uncertainty in the political environment, you are going to see a lot of people on the sideline to watch what happens.” What will help Las Vegas originations is people relocating here for jobs who won’t be deterred from buying in a market that has lower home prices than where they currently live, Hulsey said. The total number of originations in Las Vegas during the second quarter was 20,802, a gain of 7 percent over the second quarter of 2017. That was driven by a gain in refinance, up 14 percent to 7,290, and home equity lines of credit, up 28 percent over the past year to 1,817. Both of those large gains in Las Vegas go against the national trend, Blomquist said. Blomquist attributes price appreciation in Las Vegas for the gains in refinancing and home equity lines of credit. Hulsey said they’re seeing more Nevada customers turn to home equity products for “home improvements, make large purchases or consolidate other debts.” All of the second-quarter totals in Las Vegas are well below the peak of the market, according to ATTOM.

Do you need good credit to buy a home?

Luckily, you don’t need impeccable credit to buy a home. For instance, official FHA guidelines say you can get a 3.5% down loan with a 580 score. Apply with many lenders, especially if you have a lower credit score. Check your eligibility for a low-credit home loan here. (Oct 31st, 2018) Credit score minimums The following minimums apply to the major loan types available in today’s market Conventional/conforming: 620 minimum credit score FHA loans: 580 minimum score (3.5% down); 500 score (10% down) VA loans: No minimum score per guidelines, but lenders set minimums around 620 USDA loans: 640 minimum, although some lenders will approve lower scores Keep in mind that if you have banged-up credit, an FHA, VA, or USDA loan might suit you best. Conventional loans come with high rates for applicants with credit scores below 680. If you’re in the market to buy a home, it’s best to know your credit issues so you can start addressing them. Other times, you have to make timely payments for 6-12 months before your credit score starts rising again. How do I check my eligibility for a home loan? The first step to buying a home is to get pre-approved via an application with a lender.

Stuck in the rent vs buy dilemma? Consider the local price-to-rent ratio

Price-to-rent answers affordability questions If you’re debating whether to rent or buy, look to your local price-to-rent ratio for guidance. Verify your new rate (Oct 29th, 2018) Where buying a home’s more affordable According to a new analysis from Rentberry, Trenton, New Jersey, boasts the nation’s lowest price-to-rent ratio, making it a slam-dunk for potential home buyers. The median property price in Trenton sits at $149,700, while the average monthly rent is $1,500 per month, making Trenton’s rent-to-price ratio 8. Daniela Andreevska, content director at real estate analytics firm Mash Visor, says anything in the 15 and under range means buying a home is more affordable than renting. “For renters and homebuyers, this means that it is relatively cheaper to buy a property in a certain market rather than to rent there,” Andreevska said. “So, if you have the necessary cash for a down payment and have figured out the rest of your financing in such a market, go ahead and buy a home.” Other cities with low price-to-rent ratios include Toledo, Dayton and Akron, Ohio; Syracuse, New York; Davenport, Iowa; Hartford, Connecticut, Cedar Rapids, Iowa; and Lansing, Michigan. “In most of these locations, the median property price does not exceed $250,000, which is below the level in many other top markets at the moment,” Andreevska said. Home prices in the area average $1.4 million, while the average monthly rent is $2,780. “Some of these cities are infamous for the high real estate prices there, such as San Francisco, New York, El Paso, and Irvine,” Andreevska said. In such expensive markets, it makes sense that renting is the better option or even the only affordable one.” Show Me Today's Rates (Oct 29th, 2018) Get today’s mortgage rates Looking to buy a home in one of the nations low price-to-rent markets?

Juggling real estate, second job not uncommon for agents

“Starting a new career as a real estate agent can be intimidating, to say the least. She spells out a few tips for part-time agents seeking to get into real estate full time and for workers jumping into the field while holding down another job. One key starting point is to find a broker who’s used to part-time or newer agents. “Obviously it’s not easy to be available for your clients at a time that is good for them if you work limited hours. “But if you work elsewhere during this time period getting things done might become quite difficult.” Another potential problem are situations when it’s not possible to meet certain timing requirements. “You already know that evenings and weekends are prime time for agents, and finding the time for a day off or vacation is going to be difficult if you want to succeed.” She says many prospective agents “decide to ‘test the waters’ before devoting themselves full time as a new agent.” Many associates begin as part-timers and some stay that way, Ford says, noting that it fits “single parents, persons looking to supplement an existing income, or retired persons who want to stay active and involved.” For potential real estate investors, there are income streams “to sustain you” while pursuing the career full time, says Jaren Barnes, writing for BiggerPockets.com. It takes “a little bit of a hassle” to get things set up, he says. “But once they are, you’re looking at making $200-$400 per appraisal.” Barnes acknowledged that becoming an appraiser “definitely takes a time investment.” The outcome, however, can be “working less than 10 hours and making a decent income.” Assistant Property Manager. Broker price opinion professional. Barnes says that becoming a stager “is something you can do right out the gate, without any professional experience.” Moreover, it can be fun, lucrative and fairly easy to develop a schedule so the work is part time.

The housing market is cooling off — and uncertainty isn’t helping

The housing market has been losing momentum, with inventories rising to 2011 highs. Wage growth could help bridge the disconnect. From rising prices to the new tax law, economists say there are a number of conditions contributing to a slowdown in the US housing market. "Usually, consumers are used to seeing the housing market perform in tandem with the economy," said Jonathan Miller, an appraiser and market analyst. "But what's been especially confusing over the last year and a half or so is that they seem to be disconnected." Together with rising rates, an increasing number of Americans have been priced out of the market. That could be especially discouraging for Americans living in states with high taxes and expensive housing markets, like New York and California. "This isn't too surprising given the growing gap between what homebuyers can afford and where home prices stand today," BAML said. "What's clear in the responses is that consumers believe the housing market has favored the seller this year." "If you look at wage growth with inflation factored in and then at housing prices, there's a big disconnect."

The Real Estate Concierge

The best travel concierges are not only well-trained and well-connected professionals, but they are passionate and resourceful in fulfilling their clients’ needs. However, while your connection with a travel industry concierge typically concludes at checkout, the Real Estate Concierge looks to build a relationship with clients that lasts long after the real estate transaction is completed. Moving is said to be among the most stressful experiences in life, falling just behind death and divorce. While a Realtor will provide an assessment of your home’s value and market and list your home, he or she could leave you on your own when it comes to making decisions on repairs or upgrades to your property and finding trusted reliable and affordable vendors to do the necessary work. One of the most important services a concierge can offer is organizing a pre-inspection period of your home. This inspection is specifically for the seller to ensure there are no unwanted surprises when the buyer comes to inspect your house. When it comes to moving and storage, your concierge service can connect you with trusted vendors to coordinate cleaning up and clearing out. Real Estate Concierge professionals aim to help you present your home in its best possible light by coordinating with a valuable network of best-in-class service providers for general home inspection, roof inspection, staging inside and outside, general contracting, handiwork, and professional cleaning. A Real Estate Concierge goes the extra mile to connect buyers with a vetted list of service providers for superior assistance in preparing their homes for move-in. Concierge service goes beyond by acclimating buyers to their new community.

How student loan debt hurts Millennial home buyers

The impact of student loans It’s no secret that crippling student loan debt keeps many Millennials from buying a home. But according to new data, Millennials with student loan debt aren’t just less likely to own a home. Verify your new rate (Oct 24th, 2018) Buying a home with student loan debt According to a new study from MagnifyMoney, the homeownership rate among Millennials with student loans is just 34 percent — two percentage points lower than those without loans. Homeowners with student loan debt have properties valued 5 percent lower than those without it. According to MagnifyMoney’s Rebecca Safier, there are lots of ways this cohort can get ahead on those loans and open the door to better financial health. “If you can make extra payments, you can get out of debt faster and save money on interest,” Safier said. Look for areas where you can cut down on spending. As a result, refinancing could save you money on interest and help you pay off your student loans ahead of schedule.” Get today’s mortgage rates Millennials now make up the largest share of homebuyers, so hope isn’t lost for these debt-saddled Americans. Shop around and see what mortgage rates you qualify for today. Show Me Today's Rates (Oct 24th, 2018)

Getting a mortgage is now easier, but it could backfire

Your debt-to-income ratio, or DTI, is the percentage of monthly income you pay toward your monthly debts, including a new mortgage payment. Fannie Mae increased its maximum DTI ratio to 50 percent, up from 45 percent, in July 2017. However, you’ll pay private mortgage insurance when you put less than 20 percent down — and you might not be able to borrow as much as you need to buy a home. “We’re still about one-quarter of where we were compared to the pre-housing boom,” says Kan of mortgage credit accessibility. “Standards are looser now than they were from 2010 to 2012 when credit access was the tightest, but it’s not subprime.” The share of new, conventional conforming home-loans with a DTI ratio above 45 percent spiked after Fannie Mae raised its DTI limit, according to research from CoreLogic. Even as high DTI loans gain popularity, lenders haven’t budged on credit score standards. Borrowers’ average credit score for conventional, conforming purchase loans remained unchanged at 755 in the first quarter of 2018 compared to the same period a year ago, CoreLogic found. That’s significantly higher than homebuyers’ average credit score of 705 in 2001 — before the downturn. A high LTV ratio increases borrowing costs, and you’ll likely have to pay mortgage insurance to offset the lender’s risk. “Today, people have significantly less savings in reserve.

The number of Utahns worried about housing costs is rising, particularly in Salt Lake...

The ranks of Utahns worried about affordable housing have grown dramatically since 2015 and conditions appear to be the worst for renters living in Salt Lake County, according to a new study. The nonprofit Utah Foundation reports that of 20 measures in its yearly Community Quality of Life Index, public perceptions on housing affordability have seen the largest declines in recent years. Statewide, about 12 percent of respondents to Utah Foundation surveys said their personal housing costs were not affordable this year. That number hovered between 7 percent and 8 percent in Utah, Weber and Davis counties, and at 6 percent for Utah’s rural counties. But in Salt Lake County — home to a third of the state’s population — that number was at 20 percent, or one in five residents. "That's a big difference," Utah Foundation President Peter Reichard said in an interview. "That indicates the sore spot is Salt Lake County." Housing advocates with Salt Lake City estimate a gap of at least 7,500 apartments affordable to low-income renters making $20,000 or less. And one in four renters told the Utah Foundation their housing was unaffordable, compared to 4 percent of homeowners. Foundation analysts said that contrast was probably due to a relative stability in costs in recent years for homeowners with fixed-rate mortgages, while rents have risen much faster than the cost of living, especially in Western states and those enjoying rapid economic growth, including Utah.

The Best And Worst States For Millennial Homebuyers

In order to help Millennials find affordable housing, a recent study conducted by finance website GOBankingRates analyzed median home prices across the U.S. relative to the national median income for Millennials, defined as people ages 25 to 34, due to the Census Bureau’s data parameters. This served as the basis for determining the amount of time it would take to afford the down payment and the estimated monthly mortgage payment in every state based on a 30-year, fixed-rate mortgage. Some of the states with the biggest influx of Millennials in recent years — Oregon, Colorado and, of course, California — are among the top five worst for them to buy a home. Here’s a look at the top five least affordable states for prospective Millennial homebuyers: 5. Oregon Median list price: $375,500 Monthly mortgage payment: $2,014 4. Hawaii Median list price: $615,000 Monthly mortgage payment: $3,256 Most Affordable States for Millennials A tough issue some of the most affordable states face with Millennials is their appeal, whether real or perceived. Here’s a look at the top five most affordable states for prospective Millennial homebuyers: 5. Indiana Median list price: $180,000 Monthly mortgage payment: $1,000 4. Ohio Median list price: $169,900 Monthly mortgage payment: $948 2. Trending Now: 58% of Americans Have Less Than $1,000 in Savings

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Reasons to refinance: I want to pay off a mortgage faster

You can refinance to a shorter term, which usually also offers a lower interest rate You can refinance to a lower rate but keep making the higher payments, reducing your principal balance faster You can take a cash-out refinance to clear all your higher-interest debt, then use that monthly saving to accelerate the repayment of the mortgage Usually, you have to make a higher payment to pay off a mortgage faster. But sometimes you can reduce your rate, continue to make the higher payment, and knock years off your mortgage term. Some mortgage agreements impose prepayment penalties if you pay off your home loan early. If you’re banking on high returns on your investments, those won’t be certain You’re definitely going to receive (as savings) the money you don’t have to pay out by having fewer mortgage payments You can easily work out the total costs of borrowing for your two models: leaving things as they are now and paying down your mortgage quicker. Refinance to a shorter term The most obvious way to pay off a mortgage faster is to refinance to a loan with a shorter term. However, these loans come with higher monthly payments. Just pay more Many lenders will allow you to increase the size of your regular mortgage payment or simply make extra payments when you can. If you carry on paying monthly, you’ll make only 12. You can then use all that extra money to pay down your mortgage faster. But you’ll also have a higher mortgage balance and probably a longer loan.