Current Mortgage Trends for Las Vegas Homes Residents

As the season pass by, mortgage trends have
stayed to be erratic. New rules and regulations have made it more difficult for
some to be able to pay in these troubled times. Even though rates have dropped
to record lows, the number of mortgage applications has declined as well. Here
are some of the mortgage trends that buyers of Las Vegas Homes
will face in the following months.

Keep yourself prepared for any abrupt
changes that might happen. Rates oftentimes vary unpredictably, and since no
one knows what we can expect for the rest of the year, it’s best to always be
prepared for the unexpected.

It will be much harder to refinance than
what is anticipated. During the first quarter of 2010, average rates on
outstanding mortgages were 5.979%. Refinancing is
quickly becoming unachievable for most, however. As homes depreciate in value
due to the housing crash, homeowners have found themselves unable to refinance
due to the lack of equity. They can’t borrow more than their home is worth.

There will be stricter FHA
guidelines. Sellers are allowed to assist buyers in affording their mortgage
costs. Some programs limit the seller’s contribution to 3%. The FHA has now
adjusted to match the industry’s 3% maximum rate. Buyers of Las Vegas Homes
are now relying less on the FHA,
Fannie Mae, and Freddie Mac, and private lenders are now more willing to take
more risks on what they deem worthwhile.

On 2008, a law called the SAFE Mortgage Act
protects the consumers by regulating brokers and loan officers. Mortgage
brokers and loan officers for mortgage banks are required to pass a state
licensing test. Also, loan officers working for banks or credit unions are not
required to take the exams, but must register with the federal authorities.

If you are on the market looking for Las Vegas Homes
and may be applying for
a new mortgage soon, these trends may affect your potential purchase. Knowing
the trends and status of the mortgage industry will give you access to many
options and maybe even save you some cash.