In Nevada, as in much of the rest of the country, real estate values have increased over the past several years. Real estate database Zillow reported the median home price reached $283,000 in February 2019 and is expected to rise beyond the $300,000 mark in 2020.
That’s up from a low median price of $126,000 in late 2011. The current median value is just slightly below the national median of $302,400, as tracked by the U.S. Census Bureau. With an increasingly expensive market, Nevada homebuyers need to pay especially close attention to rates, terms, and conditions to find the best deal possible.
A number of national, state-level and local economic factors impact home prices in the Silver State. From the global and U.S. economy’s performance to lender competition and laws within Nevada related to home loans, there’s plenty to consider.
Unique concerns within the state that may impact home prices include the wide variety of real estate markets and population distribution between rural and urban areas. To find the best possible mortgage in Nevada, read on to learn about best practices for finding top lenders and lowering costs.
Table of Contents:
- Current Mortgage Rates in Nevada
- Mortgage Rate Factors in Nevada
- Get the Best Mortgage Rates
- Best Mortgage Companies in Nevada
Current Mortgage Rates in Nevada
Mortgage Rate Rate Factors in Nevada
Finding a great mortgage rate in Nevada, as well as choosing the right lender and type of home loan, depends in large part on being an informed and thoughtful consumer. When you carefully consider the different options available from lenders operating in the Silver State, you have a better chance of securing a mortgage with the best possible rates and terms.
A general understanding of the different factors that can increase or decrease the overall cost of a mortgage is also important, as is a strong grasp of your personal financial situation, long-term expectations, and plans for the future. Keep these critical elements that influence mortgage and refinances rates in mind as you begin the process of qualifying for a home loan.
1. Type of home loan
The general concept of a mortgage is the same across the many specific options that exist. However, there are major differences between these varieties. A fixed-rate mortgage has an interest rate that remains stable across the life of a loan, making it easier to incorporate into household budget planning.
This type of loan is often a good fit for those who plan to remain in their homes for the long haul. An adjustable-rate mortgage frequently offers a lower initial interest rate but then adjusts after that introductory period ends, based on a number of economic factors.
These loans are beneficial for those who plan to move or pay off the loan in a relatively short period of time. More specialized loans, like those offered by government agencies or programs from individual lenders, often have a variety of qualification requirements in exchange for benefits like lower rates and reduced down payments.
2. Type of refinance
Just as many different types of initial mortgages exist, there are also a variety of different mortgage refinancing options. A cash-in refinance aims to lower monthly payments through an influx of cash, which also provides the benefit of an improved loan-to-value ratio.
A cash-out refinance is in many ways the opposite, allowing homeowners to turn established equity into a liquid asset at the cost of an increased total loan amount. Short refinances and similar options intend to provide an alternative to foreclosure, negative equity and similarly serious problems.
Knowing which refinance makes sense for your personal needs is a vital first step, as the Federal Reserve pointed out.
3. Length of term
Whether you’re refinancing or seeking your first mortgage, the length of the loan term is an especially important consideration. Both approaches have their benefits depending on your specific financial situation.
A shorter-term means less money paid over the life of the loan, assuming all other things are equal because there’s not as much time for interest to accrue. However, it also requires a higher monthly payment to offset the shorter loan length.
A longer-term reduces the monthly payment but leads to increased interest, due to the time frame. Based on your income and other factors, one option or the other will likely prove to be a better fit for both your monthly budget and long-term financial needs.
4. Down payment
Standard mortgages often ask for a down payment of around 20 percent, but there are options from individual lenders and federally backed home loan programs that can reduce this up-front cost.
A higher down payment will lead to less interest paid overtime and a lower monthly payment than an equivalent loan with a lower down payment, so prospective homeowners need to consider long-term advantages versus the increased initial spend. If a higher down payment won’t place significant stress on your budget, this approach can be worth it to save more money in the long run.
How to Get the Best Rates in Nevada
A great mortgage or refinance rate isn’t particularly difficult to find, nor is it a complicated process. It simply requires the dedication of some time and effort. Comparative shopping, which involves collecting and then reviewing quotes, terms, and conditions from a variety of lenders, makes it easy to reach an informed and positive choice.
Despite the relative ease of this process, it’s not particularly common among current homebuyers. The Consumer Financial Protection Bureau said close to half of all prospective homebuyers don’t compare potential lenders before making a decision. Shopping around is an easy way to save a significant amount of money in the long term.
Because mortgages generally last for long periods of time and often involve hundreds of thousands of dollars, small improvements in interest rates can mean substantial savings.
Make sure to keep track of all the information that comes in from potential lenders, paying special attention to rates, terms, and conditions. Look for loan providers that offer online quotes to speed up the process of gathering comparative information, but also set aside time to reach out to those that require a phone call or in-person visit.
Those lenders might just have the best offer for your situation. As you reach the end of the home buying process, you should also be aware of the many fees and other costs that commonly arise during the closing period. Some fees likely can’t be negotiated or removed, especially those required by government agencies, but the costs imposed by private businesses are more flexible.
From the loan origination and document preparation fees to the title search and many others, don’t be afraid to ask for some of these fees to be cut down or waived.
Recommended Companies in Nevada
Nevada has a number of potential lenders to consider. Some leading options include:
Quicken Loans
As an online marketplace connecting lenders and borrowers as opposed to a single business providing mortgages, Quicken Loans can make comparative shopping significantly easier. With a single, standardized interface and access to many different Nevada-based lenders, Quicken Loans is a useful and powerful option.
Quicken Loans also enjoys an excellent 9.8/10 rating based on our own review of its loan specifics, customer experience, qualification requirements, and overall lender reputation.
New American Funding
Offering a variety of home loans and mortgage refinance options, New American Funding makes it easy to find a loan that works for your specific needs. It promises to close purchase loans inside of 14 days, an especially fast standard, and also provides down payment assistance options to borrowers who qualify.
Servicing 48 states, including Nevada, New American Funding offers both online and over-the-phone loan applications that provide valuable flexibility.
LendingTree
Another online marketplace for home loans, LendingTree has more than 20 years of experience providing information and access to loan information via digital means. Making it easy to compare offers from different lenders, this marketplace has providers that offer FHA and VA loans as well as conventional mortgages.
LendingTree offers a variety of information, resources, and calculators to help borrowers better understand their financial position and needs.
NBKC
NBKC offers a complete mortgage process, from origination to closing and funding, as an individual lender. Especially high customer satisfaction scores are important to note, with 98 percent of its customers recommending it to other potential borrowers.
It only offers in-person service in Missouri, but this is one of the few noticeable drawbacks of its approach to home lending.
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