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Posts Tagged ‘fixed-rate’

CONVENTIONAL Loans for Home Buyer’s Las Vegas, FHA, VA. Ask Penny 702.321.9383

Tuesday, August 1st, 2017

HOWDY,

Let’s talk about lending:

The best way to explain what  a conventional loan means is that a home buyer’s mortgage is not backed or insured by a government agency such as the Federal Housing Administration (FHA) or Veterans Administration (VA). Buyers can use a conventional mortgage to purchase a one- to four-unit home, a condominium, modular or manufactured home as a primary, secondary or investment property.

A loan that conforms to conditions and terms of the government-sponsored enterprises Fannie Mae and Freddie Mac is called a “conventional loan.” The down payment of a conventional purchase loan is generally higher than that of a government-insured loan, such as an FHA loan, which is 3.5%. Conventional borrowers generally must pay between 5% to 20% percent of a home’s purchase price for a down payment. On a refinance a conventional loan can go up to the Loan to Value (LTV) of 95% with the addition of PMI or LPMI factors.

On a conventional loan the lender will consider a buyer’s debt-to-income ratio, which he/she determines by calculating the projected housing costs and actual recurring monthly expenses. A buyer/buyer’s home expenses. Which include the monthly loan payment applied toward principal and interest, property taxes, mortgage and homeowners insurance as well as total of all monthly expenses, including housing, must not exceed 43% of the buyer’s income.  Do you fit that criteria?

A FICO credit score of 640 and higher increases a borrower’s rate of approval and may reduce the loan’s interest rate.  FICO is an abbreviation for the Fair Isaac Corporation, the first company to offer a credit-risk model with a score. The story would be more interesting if “Fair Isaac” refers to some wise, above board person. Here’s the deal: Bill Fair and Earl Isaac are the founders.

Borrowers who have filed a Chapter 7 bankruptcy case can apply for a conventional mortgage after four years from discharge date, and those who have filed a Chapter 13 may apply two years after the re-establishment of an active credit profile.

The current market and the borrower’s FICO credit score influence the interest rate he’ll receive on a conventional loan. Conventional loan programs at a fixed rate, where the interest rate stays consistently the same throughout the term of the loan, or as an ARM, an adjustable-rate mortgage, where interest rates initiate at a below-market rate and change on a designated schedule, which ranges from monthly to annually or longer.

Conforming conventional loans: have a maximum loan limit set by Fannie Mae at the county level.

In the case of non-conforming loans, banks ususally set the limit at 80 to 90 percent of the home’s appraised value.

Call Penny O’Brien @ 702.321.9383

Prices & Sales Continue to Rise in the Las Vegas Housing Market, March 2016

Friday, April 15th, 2016

Hi Everyone, Happy Friday from Sunny, Windy Las Vegas:

Words: The Central Banker’s Conundrum April 8, 2016 — Mortgage rates declined a bit this week,

April 8, 2016 — Mortgage rates declined a bit this week, as investors refocused on global economic troubles and the words and deeds of central bankers around the globe.

Although modest U.S. economic expansion continues, doubts remain that it is durable enough to continue in the face of considerable worldwide headwinds, or strong enough so as to be an engine to help lift the world from its malaise. Certainly, many central banks are employing novel approaches to try to spark growth in their economies, but so far the only success story to be seen is here.

Much as it might like to, the Fed cannot lift interest rates as desired, at least not without causing the kind of market-disrupting outward ripples we endured in the aftermath of the Fed’s small move to the Federal Funds rate back in December. That move — and plans for as many as four more this year — so unsettled markets that the Fed was forced to back down its expectations for lifting rates in 2016 from four moves to two.

As they usually do after tumultuous periods, markets settled, and now, with Fed policy de-tuned, there aren’t any immediate rate changes for which to plan or hedge. The Fed is watching the data for clues, the market is watching the Fed for clues, with both reacting accordingly when they come. At the moment, the Fed is “talking down” expectations for growth and rates by highlighting the risks and challenges the economy faces. This has helped mortgage rates to fall, but presents a bit of a quandary for the Fed’s messaging to markets.

HSH.com’s broad-market mortgage tracker — our weekly Fixed-Rate Mortgage Indicator (FRMI) — found the overall average rate for 30-year fixed-rate mortgages eased by eleven basis points (.11%), slipping to an average 3.67%, its lowest value since May 2013. The FRMI’s 15-year companion found a little less space to fall, with this week’s average trimming nine basis points to an average rate of 3.07%. Rates on fully-insured FHA-backed 30-year FRMs remain considerably below their Fannie and Freddie counterparts but declined far less than they did, falling by just four basis points to land at an average interest rate of 3.55%. Meanwhile, the overall 5/1 Hybrid ARM continued tracked the FRMI completely, sliding by eleven one-hundredths of one% to land at 2.90 percent for the week.

The median price for condos was also up for the 47th month in a row.

with home sales have been higher than the year before ten of the last twelve months.

The housing market continues to be on the side of sellers.

The median price for single-family, re-sale homes in the Greater Las Vegas area rose, year-over-year, for the 47th month in a row in March.

 

I will say once again, INVENTORY is very low.  If you are ready to move please give me a buzz so we can go over your Real Estate needs.  I am here to help.  Thank you for your time.  Penny

 

Penny O'Brien
Las Vegas | Henderson | Summerlin Realtor/Real Estate Agent


Cell:  702.321.9383
Email: lasvegasniceliving@yahoo.com

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