Las Vegas Undressed

Canyon Ridge Christian Church

Here is a photo of  the Canyon Ridge Christian Church in North Las Vegas.

North Las Vegas Real Estate

This afternoon I was driving around just south of Aliante and I noticed three attractive homes for sale. All threeof them are  in the 3800-3900 block of  Internet Avenue. Now remember I’m not a real estate agent so I had some trouble finding information about the properties. What I can tell you, with a fair degree of confidence, is that the next two homes are both about 3500 square feet. The one above is a little smaller.

According to a realtor that I spoke to; they seem to be owned by the banks and represent good value for the buyer. 

This home is currently priced at $499,000 and an open house is expected this weekend. The price is likely to be adjusted downward, according to the realtor.

Hope I have the right house on this one. This home is said to have a pool and a casita. The price is $499,000, hence the potential for a price reduction on the last home.

I thought that these homes were a little different from what is normally seen in Las Vegas. They are not in a gated community, they just caught my eye and I have tried to find out more information on them.

When you decide to buy one, call me and I’ll help you with the loan.

Mark V Clawson 702-351-7912 

Las Vegas Real Estate - The Perfect Storm

The Las Vegas Review Journal had an interesting article on the foreclosure market in the Las Vegas Valley this weekend. A time warp in real estate values seems to be occurring.

“Sometime this weekend, while you’re shuttling the kids to soccer tournaments or picking up milk at the grocery store, several dozen of your neighbors will go back in time nearly 10 years. They’ll see a 3,128-square-foot Christopher Homes house in Summerlin’s upscale Country Rose Estates on sale for it’s circa 2000 price of $370,000.”

The Housing Bubble is creating a Perfect Storm for many homebuyers, investors or otherwise. The Bubble which was created by over zealous investors, lenders and builders pushed prices too far and too fast. We are seeing a retrenchment in home prices which will probably be overdone.The values of homes in the Las Vegas Valley will recover and move forward again.

You can review my reasoning in this article Las Vegas Real Estate - Time to Buy.  The recovery time for the Las Vegas Real Estate market may be longer than some had thought. The same lenders who gave you option ARMS, stated income and stated asset loans are now trying to be good business people. These changes will reduce the number of homebuyers who can qualify for home loans.

There is an inventory of 7,000 foreclosed homes on the market in the Las Vegas Valley and this is hurting everyone’s home values. They need to be sold and taken out of the market.

A new marketing strategy is unfolding in Las Vegas. The investor or homebuyer will “simply hop a ride on a foreclosure bus tour led by Barbara and Marshall Zucker of Prudential Americana Group, Realtors. Such tours have been hot since the fall in distressed housing markets in California, Florida, Michigan and Georgia. Now they’re revving up here.”

This seems like a great way to get a real look at the market and to find some true values. The bus tours are free and you will have a chance to view multiple properties.

To read the full article “Home sellers warp time” in the Review Journal here is a link.

Mark V Clawson 702-351-7912 Your Local Mortgage Loan Consultant

Las Vegas Mortgage Rates - What are Points?

I think it’s important to know what points mean when you’re applying for a mortgage loan. Points are not necessarily evil as many borrowers think. A no fee loan doesn’t always work in your best interest.

Loan Origination Fees:  Points

These fees are how your loan consultant gets paid. When the borrower pays all of these fees (points) the rate is lower. The borrower can receive what is called  par pricing from the lender (the lender is not paying anything to the loan consultant).   Let’s say that par pricing on a 30 year fixed rate  loan is 5.5% and that the loan amount is $200,000.  If the borrower pays 1 ½ points (loan origination fee) the loan consultant receives $3000 in fees from the borrower.

When the borrower chooses not to pay any points then the loan consultant must look to the lender in order to get paid.  The consultant views the lender’s rate sheet and looks at what is called the yield spread premium. This is the lenders term for points paid to the loan consultant.  To get 1 ½ points from the lender the rate may be 5.875%, for example, instead of the 5.5%. Hence, if you don’t pay the points the rate on your loan will be higher.

Here is some math on the differences:

• The points cost you $3000.
• You save $576 a year in interest payments with the lower rate.
• It will take 5.2 years in interest payment savings to pay for the $3000 in fees.
• After that you save $576 a year.

So, how long are you going to stay in this house?

If you are only planning on staying in the house for a few years you’re better off with the higher rate and not paying the points.

Keep in mind that you can structure the loan so that you can have a combination where you can pay part and the lender can pay the rest. There are options available to you.  I am trying to bring some transparency to the subject. It is also important to talk about locking your loan with your loan consultant. Nothing is set until the loan is locked.

Where do you find the yield spread premium?

Currently only mortgage brokers have to disclose the yield spread premium, and you should find it on your Good Faith Estimate. Banks and mortgage bankers (loan officers who work for the banks) do not have to disclose. I find this rather odd when you look at the mortgage crisis that has been evolving over the last year or so. It doesn’t seem to me that the banks have been providing the best disclosure on some of the products they have brought to the marketplace.

It is important that your loan consultant is a trusted advisor who is working in your best interest. Not all loans are the same;  some are more difficult than others.  Remember points are percentage fees. A smaller loan amount should have a higher percentage fee than a large loan amount. It is important that the  fees are reasonable.

I had a client who was quoted a rate of 7.5% on a 30 year fixed rate mortgage refinance. I reviewed the good faith estimate and the loan officer was making 4 points or $12,000 on a $300,000 refinance. My client had good equity in his home, good income, and excellent credit. I got him a 6% rate on a 30 year fixed rate mortgage and my fee was about $3500.

This post is just about keeping your eyes open and asking some significant questions. We don’t need loan officers like the one mentioned above. Just remember that the banks aren’t required to disclose. Always ask for the APR (annual percentage rate) and compare. Truth-in-Lending (Reg Z) requires this disclosure and it is a good basis for comparing loan programs as long as the terms of the loan are the same. You need to have an apples and apples comparison.

Discount Points:

This is really pretty simple. You can buy your rate down by paying the lender a certain number of points. You may be able to lower your rate by about .25% by paying 1 discount point (it will depend on the loan program that you are choosing). The money doesn’t go to the loan officer it will get you a lower interest rate. Here again you need to do the mathematics and determine if the cost is worth it. How long will you be in the home? If it is only going to be a few years then you’re better off with the higher rate and avoiding the fees.

If you ever have any questions please call me. Mark Clawson 702-351-7912

Springs Preserve and Cirque du Soleil

On Saturday March 29 you can participate in a 5K Run 1 Mile Fun Walk at the Springs Preserve. The event is to benefit Cirque du Soleil community partners, working with youth at risk: Center for Independent Living, West Care, and The Andre Agassi Charitable Foundation.

Looks like a lot of fun, Mayor Oscar Goodman will be the shotgun starter for the events. The Cirque du Soleil cast and crew with provide music and entertainment and there will be photo opportunities with the performers. The kids, maybe the adults, can enjoy face painting and circus fun in the play area. 

The first 900 participants will receive an event cooler tote and one raffle ticket. There is an opportunity to purchase additional raffle tickets. There will be 7 show packages rewarded, a grand prize trip for four to Orlando to see La Nouba, passes to Springs Preserve and the live music concert series at the Springs Preserve Amphitheater!

The age divisons start at 10 and under and go all the way to 80+. Registration fees are $25 for the 5K run and $20 for the 1 Mile Run Walk (non-competitive). You’ll want to register in advance. Registration on the day of the event is $40 for either event.

Paid event participants can purchase discounted admission to the Springs Preserv museums and galleries on the day of the event .

Here is a link to the event Run Away With Cirque Du Soleil there is more detail and you can confirm the information for yourself.

Las Vegas Mortgage Rates

I have updated Las Vegas Mortgage rates and you can view them by clicking on the bar at the top of the page. Over the last week we have seen the stock markets move higher and this has impacted the 10 Year Treasury Note Yield. We are seeing 30 year fixed rate mortgage rates moving up by about .375%. I have mentioned that in a declining stock market there is a flight to quality, so when the markets are doing better then rates on mortgages tend to move higher.

Now on the bright side, while the  30 year fixed rate mortgage rate has been moving higher the shorter term adjustable rates (3-5- and 7 year)  have remained the same or have gone somewhat lower.   The reason for this is that the loosening by the Fed is perceived as inflationary and inflationary pressures are not felt as strongly on shorter maturities.   

Mark V Clawson 702-351-7912

Centennial Hills Hospital

Just this last month Centennial Hills Hospital Medical Center, the newest member of the Valley Health System, opened its doors to patients and their families at its hospital campus.The beautiful new “smoke free campus” is an eight-story facility with a 41-bed emergency room, an intensive care unit and 108 medical and surgical beds. Centennial Hills Hospital provides a wide range of medical services and procedures; however, there does seem to be a special connection for the women of the community.

Las Vegas Mortgage Rates

Everyday I will be posting conforming mortgage rates on my blogsite. You can click on Mortgage Rates on the bar at the top of the home page. These rates will be for purchases only. The rates that you will see assume 20% down, 680 credit scores, a conforming loan and purchase only. Your needs will vary because we are all unique.   

Should you need a mortgage rate quote that is specific to your needs, please feel free to call at 702-351-7912  or e-mail me at markvclawson@gmail.com. The mortgage loan market has been in a state of turmoil for a number of months and lender quidelines are in a continual state of flux.  Zero down loans are temporarily unavailable in Nevada. A good alternative is FHA. FHA will lend 97.15% of the value of the property and better yet these loans are assumable! Credit scores can be below 680. The rates I have quoted are for the perfect situation on a purchase. If your situation is not perfect there are alternatives. I just want you to know that each purchase or refinance (rate and term or cash out) is unique and that can effect the rate that you are eventually quoted. The best situation is to get pre-approved and determine what your real rate will be. There have been too many lenders who have been promising what they can’t deliver. We will work with you so that you don’t have any surprises.  

The District - Green Valley Ranch - Valentines Day

Valentines Day is supposed to be a relatively warm day, so it might be a good time to explore The District and have some fun.

You might want to stop by the Bluestone Gallery and take a look inside. Just click here  to see the Gallery online.   Jerry Blank has shown his work with his wife and artist, Lona, in two-man shows in San Jose, Lake Las Vegas, and New York. They are both very talented and you’re sure to have fun browsing. Maybe, you’ll buy your sweetheart a painting!   

If you’re up for Speed Dating you can find it at the ” Meet, Mix & Mingle” Valentine Event at the Whole Foods across from the District. This event is on Tuesday, February 12, from
6pm - 9pm.

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