DON’T LET MORTGAGE MYTHS SCARE YOU

DON’T LET MORTGAGE MYTHS SCARE YOU

Written by Blanche Evans on Wednesday, 18 March 2015 12:38 pm

 

The national average for the 30-year fixed-rate mortgage last week was 3.86 percent, according to Freddie Mac’s most recent survey. Freddie’s Deputy Chief Economist Len Keifer believes 2015 will be a great year, with the highest number of housing sales since 2007. The outlook for 2015 is even better, assuring almost instant equity if you purchase now.

Keifer names several reasons why Freddie Mac is optimistic:

1. Jobs have grown at a rate of 250,000 per month for over a year, with strong job growth in the first-time homebuyer age group.

2. About 80 percent of metro markets are affordable for the median family income to purchase the median priced home.

3. Rents have risen 11 percent over the last three years, which may be the tipping point for renters to become homeowners.

So with interest rates only slightly above record lows, why aren’t you running to the nearest lender to get a home loan? Maybe you’re spooked by two mortgage myths – that you have to have 20% down to buy a home and that only buyers with perfect credit can get a loan. Neither one is true.

Lending requirements aren’t as strict as media horror stories might lead you to believe. Freddie Mac is making it possible for more borrowers to meet conforming loan standards. Qualifying borrowers who buy within maximum loan limits, up to $417,000 in most areas and $625,000 in high-cost areas such as parts of California can get loans with less than 20 percent down. Of course, any loan with less than 20 percent down will require private mortgage insurance, but PMI is tax deductible along with the interest you pay on your mortgage if you itemize.

Low-income and first-time buyers can get a conforming loan with as little as three percent down from Fannie Mae, and after March 23, 2015, so will Freddie Mac borrowers. You’ll have to meet certain credit and income qualifications, but the upside is you can start building equity now.

Government-guaranteed loans are also available with as little as zero down through the Veterans Administration for veterans and active-duty military. And the Federal Housing Administration has programs as low as 3.5 percent down. All FHA loans require PMI for the life of the loan.

It’s also not true that only borrowers with perfect credit can get loans. Higher credit scores help borrowers qualify for a better rate. You can get an FHA loan with a credit score as low as 580 if you can provide the 3.5 percent down payment. A credit score of 650 or above will get you in the game for a Fannie or Freddie conforming loan if other variables in your financials are in order.

The rule of thumb is simple — less money down requires a higher credit score and vice versa.

Credit scores tell you how much money you have to put down and they’re a factor in your interest rate. If you put 20 percent down, you can get a loan even if you have a low credit score of 580 or 620. If you have a 740 or 760, the lender will allow you to put less money down.

Other lending myths are also out there, such as lenders are no longer doing stated income loans or jumbo loans. Again, that’s not true. Lenders are doing loans that don’t require an income verification if the customer has a large portfolio of liquid assets.

You may qualify for a better rate on one criteria, but not qualify on another. Lenders look at approximately 15 to 20 pieces of criteria, including credit scores, downpayments, liquid assets, current employment, revolving loans, ownership of other properties, and much more.

The lesson for you is this – don’t try to outsmart the market. The housing market is getting stronger. In fact, there’s rarely been a better time to buy a home.

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Business Expo at Sun City Mesquite

Sun City Mesquite Homeowners' Association
business expo 

Thursday, March 26

10:00 am-2:00 pm

at the Pioneer Center

58 Booths!

We have a record breaking number of booths sold at our 8th Annual Business Expo this Thursday at the Pioneer Center.

Join your Sun City friends to meet and talk with local businesses in the community. Meet the owners, see what services they have to offer and get any questions you may have, answered.

FREE Hot Dogs from 11:30 am – 1:00 pm or while supplies last.

Check out all the Sun City homes for sale at; http://www.mesquite-realestate.com

Discover Mesquite NV. and Sun City / Del Webb

Welcome to Mesquite. Only 90 miles North of Las Vegas, discover a world of its own. Small town living, yet close to big cities and conveniences. Mesquite is located just 30 miles south of St. George, Utah and enjoys over 300 sunny days a year. Sun City / Del Webb is located in Mesquite NV.

Come let me show you all the possibilities and beautiful homes Mesquite has to offer. You can also search at http://www.mesquite-realestate.com

 

In and Around Mesquite

It’s all here-hiking, sightseeing, spas, gaming, and golfing options. Mesquite’s proximity to Las Vegas and Utah gives you access to unlimited experiences and new discoveries. Nearby you will find eight golf courses, three resort & spas, Super Wal-Mart, numerous restaurants and retail stores, RV storage, tournament quality softball & baseball fields, bowling alley, stocked fishing pond, municipal airport, full service regional hospital & Quick Care clinic, department store, extreme sports outfitter, two multiplex movie theatre’s, direct access to hundreds of miles of hiking, biking, and ATV trails.

About the Area

  • City of Mesquite population is 20,000
  • Metropolitan area population – Las Vegas is 1.8 Million
  • Elevation (average) is 1,600 ft.
  • Location – 30 miles SW of St. George, UT on I-15
  • Hotel room capacity is approx. 3,000
  • Average temperature highs – 60 in January & 106 in July
  • Average temperature lows-29 in January & 70 in July
  • Mesquite averages 331 days of sunshine

Culture / Entertainment

  • Greater Mesquite Arts Foundation
  • Mesquite Fine Arts Center
  • Utah Shakespearean Festival
  • Casinos
  • Hotels
  • Cinemas

Recreation

  • 90 miles north of Las Vegas
  • 9 world class golf courses
  • Equestrian trails
  • Shooting range
  • ATV trails
  • Bryce Canyon National Park
  • Grand Canyon National Park
  • Lake Mead National Recreation Center
  • Zion National Park
  • 30 miles to pristine St. George, Utah

Transportation

  • Mesquite General Aviation (1 mile)
  • McCarran Interantional Airport (90 miles)
  • Airline Limousine Corporation operates a daily shuttle van to and from McCarran Airport in Las Vegas. Call (888) 696-4400 for more information.

Real Estate & Mortgage Insights

Real Estate & Mortgage Insights

Even though long-term mortgage interest rates declined for the majority of the last year, most analysts are predicting that higher rates will make a comeback in 2015. Most of those forecasts are based on the fact that the Federal Reserve has ended its bond-buying program and is likely to slowly start raising its target interest rates this year in order to combat inflation. Here’s a look at what the experts are saying:

BankRate.com

Analysts at the mortgage rate tracking website believe that Fed actions will cause rates to rise in 2015. “The Fed is starting to lay the groundwork for the eventuality of interest rate hikes,” says Greg McBride, chief financial analyst for Bankrate.com. “It’s only prudent for consumers to prepare themselves as well.”

Bankrate predicts that the 30-year fixed mortgage rate will rise but not above 5 percent this year.

Freddie Mac

Economists at the mortgage giant see rates as being at the bottom right now. “We expect to see interest rates climb throughout 2015,” commented Freddie Mac vice president and chief economist Frank Nothaft. He foresees long-term rates following the 10-year Treasury upward, making their way to a maximum of 4.6 percent for this year.

Mortgage Bankers Association

The MBA predicts that mortgage rates will be heavily tied to the Federal Reserve’s movements. “QE3 is officially over.  In the FOMC statement following the October meeting, the Fed clearly recognized the stronger economy and job market, seeing past the recent financial market volatility to recognize the improved growth prospects in the US for the year ahead,” wrote MBA economist Joel Kan in the Forecast Summary.  The statement still suggests that there will be a ‘considerable time’ before the Fed increases short-term rates, but we expect this is consistent with a first rate increase in June or July of 2015.”

The MBA calls for a rate increase to 5 percent by the end of this year.

National Association of Realtors

NAR chief economist Lawrence Yun believes the Fed will start raising short-term rates sometime in the first half of this year, which will push mortgage rates up. He forecasts that long-term rates will rise to just below 5 percent by the end of 2015 and to 6 percent by 2016.

“The impact of rising interest rates on will be minimal as long as job creation keeps pace,” he said in a statement. “Furthermore, if the credit box slowly begins to open up, that will also mitigate the impact of rising rates.”

It is important to remember that last year these same economists and  predicted mortgage interest rates would rise to 5 percent by the end of 2014. The reality is that long-term mortgage rates actually trended downward for most of the year, ending at an average of 3.87 percent, excluding fees on a 30-year fixed rate conventional mortgage according to Freddie Mac. Even with all the data at their fingertips, there is no way to know for sure what will happen to rates in 2015.

Sun City and the Mesquite Chamber of Commerce

chamberParticipation by members and the community is the key to long-term success of the Mesquite Chamber of Commerce, according to Acting CEO Julie Stoltz. The Chamber’s mission, to encourage and benefit the growth of business in the Mesquite area, is supported by a variety of business building programs, committed volunteer efforts and various leadership opportunities. A visit to the unpretentious Chamber offices offers little insight into the activities, energy and positive outlook exhibited by the staff, Chamber members, and volunteers. Approximately 255 business and individual members support the activities and events of the Mesquite Chamber of Commerce, and they, in turn, are supported by the Chamber in numerous ways. What does that have to do with Sun City, you may ask? After all, we are mostly retired. Supporting our businesses and encouraging additional ones to enter the local area only enhances Mesquite. Joining the Chamber Ambassadors, or volunteering for one of the many events offers our residents opportunities to experience more of what is going on around us. Volunteers are also needed in the office so that staff can attend more of the events happening in the noon hour, or take a much needed lunch break. Proofreaders are needed for the numerous publications—something that can be done in your own home. Marketing advice and grant writing help are sorely needed, if interested call Julie. Activities coming up include the fun Ducky Derby, held annually in April. You can even design your own duck! Cash mobs occur regularly. There is an annual golf tournament. The Chamber participates in and/ or supports the Mesquite Reads program, Christmas in July, Festival of Trees, the Mayor’s pancake breakfast, the film festival and numerous other events. Take a look at the Chamber Business and Visitor Guide located in our library. For more information, visit the Chamber’s consolidated and streamlined website, which includes the city calendar. You may be surprised. Then, perhaps, give the Chamber a call. Mesquite Chamber of Commerce, 11 W. Pioneer Blvd, Suite C, (702) 346-2902, http://www.mesquite-chamber.com In The Spotlight: Ken Cook Best Kept Secret: Mesquite Chamber of CommerceSun City Mesquite Time

Sun City Mesquite, Country Western Party.

 countrywestern-1
Saddle up and ride on out to Sun City Mesquite for this exciting Explore Del Webb weekend where you’ll enjoy 2-night $99 hotel accommodations March 19th-21st at the beautiful Eureka Casino Resort, plus
VIP Ticket to the Country Western Party on March 20th
Access to Sun City Mesquite’s Unparalleled Amenities and a Round of Golf at Discounted Resident Rates
Orientation and Personal Tour with a Sales Consultant

Call Chris Williams for details 702-346-3205

 

Country Western Party

Friday, March 20

4:30 PM – 8:00 PM
Dinner will be served at 5:00 PM
Band plays at 5:30 PM

Smoked brisket with BBQ sauce, herb roasted chicken, baked beans, mashed potatoes, Chef’s choice of seasonal vegi’s, southwest mixed green salad greens, corn bread and dessert.

 

Fabulous Honky Tonk Heroes are back by popular demand! Dance the night away to your country tunes.

It will be a stompin good time.

Dress in your favorite Country Western attire!

$17 per person

Deadline for refund March 10th

Deadline to sign up March 16th or when capacity is reached.

Guests may sign up 1 week prior to event.

(Must be 21 to attend)

 

Sun City / Del Webb Mesquite, what’s better a new home or a resale.

Sun City / Del Webb Mesquite, what’s better a new home or a resale.

What to expect when you go to buy a new Sun City / Del Webb home. First, you are going to walk through the models which are decorated to the hilt and notice there are no window blinds or interior doors, which make it much brighter and seem larger then it will be when you get into a new home.
Then when you start talking to the sale representative, they will start out telling you about all the discounts you’re going to get buying a new home, the hook. Then they show you a starter price that looks really cheap compared to the resale homes on the market and get you all excited about buying that new home.
They get you so involved right off the bat, you start felling obligated to buy the new home before you know what the real price is going to be.

Please sit down and have the sales person build your home on the computer just to get an idea of the price. Rest assured once you actually sit down in the show room to pick out your finishes the price will go up, it always does.
On the new homes everything is an extra, and the lot premiums are quite a bit more than previously, oh but they will give you a discount on the lot if you buy today, sound like buying a car?
My advice to you is to pick a lot, pick a house, go into the show room and pick your finishes, and get the exact price of the home. Then look at all the resale homes that are similar in Sq. footage, and make an educated decision.
I think you will always get a better deal on a resale home and you know what you’re getting.

Don’t forget to add the $10,000 on to the price for SID’s
  something the Sale Person might forget to mention. It is the infrastructure assessment from the city. 

For all the new and resale homes available go to; www.mesquite-realestate.com