Current Las Vegas Mortgage Rates
Mortgage rates in Las Vegas are currently about 3.28% as of the end of 2021, which is higher than they were for most of the year. Mortgage rates increased relatively significantly for 30-year fixed mortgages, which saw an increase in mortgage rates from 0.04% to 3.28%. The increase in mortgage rates is the most significant increase in the past eight months. Although mortgage rates have risen since the end of 2021, experts predict that they’ll increase more in 2022. That means if you are planning to buy a home in the near future, a mortgage lender will say it’s better to act sooner rather than later.
Historic Mortgage Rate Trends
Understanding mortgage rates involves looking at past trends as well. In early 2021, fixed mortgage rates were about 3%. Two years before that, they were just under 4%, considerably higher than the current mortgage rates. While multiple factors have influenced mortgage rates, one of the most persistent factors in the past two years has been the COVID-19 pandemic. In 2020, pandemic-related factors influenced Federal Reserve policies that helped guard against rising mortgage rates. Specifically, mortgage rates were protected against drastic rises primarily due to rising unemployment rates in 2020. The Federal Reserve issued policies that made every mortgage lender lower interest rates to make housing costs more affordable in response to rising unemployment rates. Lowering interest rates also helped make homeownership more affordable and incentivized homeowners to refinance their homes to lower their monthly mortgage payments.
What Mortgage Rates Mean for Prospective Home Buyers
Potential home buyers should be prepared to pay a bit more for their homes upfront, as higher mortgage rates mean that homeowners will need to put down a larger down payment so that they pay less in interest later on. Although they should be prepared to pay more initially, home buyers should note that they will likely pay less for their home over time, as they will offset potentially significant interest costs. Naturally, planning to buy a home is essentially a matter of personal choice. However, mortgage lenders in Las Vegas will also say that timing is essential when buying a home. If mortgage rates are likely to rise, as is the forecast for the next year, a mortgage lender will advise purchasing a home soon.
Mortgage Rates for Current Home Owners
Mortgage rates differ for current homeowners compared to prospective homeowners. For those who already own a home, refinancing may be an option to consider. Refinancing a home may have several attractive benefits, including lowering the cost of home payments each month and reducing the amount of interest you pay during the loan’s lifetime. Another factor to consider is that home values have risen nationwide over the past year. That means you can consider a cash-out refinance, which has been an especially popular option over the past year. With a cash-out refinance, you can experience an increase of about 37% – 49% of all your refinances in the first part of the year, as a mortgage lender in Las Vegas will tell you. A cash-out refinance can assist in many ways, including giving you a way to pay off higher-interest debt. You can also use the extra cash to help pay for college tuition if you have college-age children or provide extra funding for home improvement projects.
Rules and Laws of Buying a Home
As with any other location, buying a home in Las Vegas comes with some considerations that you’ll want to keep in mind, which mortgage brokers in Las Vegas will explain when you start to take the steps required to buy a home.
One of the primary laws that you’ll want to know about as a home buyer is a law that forces the seller to disclose all the potential problems with the property, including:
- Electrical systems
- Environmental hazards
The disclosure law must cover all aspects of the home. If there is a problem with the home, the seller must provide a full description of the issue and include as many details as possible, including providing photos. These issues, contained in the disclosure statement, must be provided within ten days of the impending home sale. If the seller does not provide the disclosure statement in that period of time, the home buyer can withdraw their offer without incurring a penalty. Along with providing information on problems with the home, sellers must let buyers know if there are any defects with the home or if a problem that was previously disclosed gets any worse.
Nevada also has laws that govern what happens if a couple divorces. In Nevada, both spouses share the debts and assets incurred over the time they were married. All assets, including business debt, cars, bank accounts, and other household items, are divided evenly in the event of a divorce unless the couple has a marriage contract that states otherwise.
Taxes are another cost that you’ll need to consider when buying a home through mortgage brokers in Las Vegas. If you are unsure what your total tax payments will be, a mortgage lender can help you add up all the costs. Generally, your tax amounts are based on the home’s total value. That rate is generally about $1.95 for every $500 that the home costs. However, tax rates around Las Vegas will vary slightly depending on your location. Taxes are generally higher in certain areas, including Churchill, Clark, and Washoe counties. After buying the home, you are also responsible for paying property taxes. Average property tax rates are just under $1,800 per year for a home with a value of about $207,000. However, property taxes are also adjusted by location, and they may be higher or lower depending on the county where you choose to live. You may be eligible for tax relief that includes assistance for surviving spouses, veterans, and disabled homeowners no matter where you live. Tax relief is provided at the county level, so you’ll want to check with the county’s tax assessor to determine what types of tax relief you may be eligible for, if any.
Loan limits are also important when thinking about affordable Las Vegas mortgage rates. In Nevada, the conforming loan limit for a property is just over $484,000. The loan limit refers to the total amount you can borrow from mortgage brokers in Las Vegas with a conventional loan through a government-backed agency like Fannie Mae or Freddie Mac. A jumbo loan is required if you want to borrow more from mortgage lenders in Las Vegas.
Contact a loan officer or mortgage lender for more information on mortgage rates in Las Vegas today.