Nevada Home Loans with FHA Rates in Nevada
In the last five years, Nevada home values have increased at an almost unbelievable pace, especially in cities like Las Vegas and Reno. If you are a homeowner, you should have a nice chunk of equity built up. While borrowing from your equity can be a smart financial move, you could be taking a gamble. This is why it's a good idea to examine all of the risks associated with Nevada home equity loans before signing on the dotted line. If you find that a home equity loan is not for you, you can look into a refinance. FHA rates Nevada home refinancing is a quick and easy way to lower your payments. Here is some things to consider before getting a home equity loan.
The basic ingredients of the FHA Short Refinance option are: The property must be the homeowner's primary residence. The homeowner must qualify for the new loan under standard FHA underwriting requirements and have a credit score equal to or greater than 500. Only "responsible" homeowners need apply - i.e., the homeowner must be current on mortgage payments. The borrower's existing first lien holder must agree to write off at least 10% of their unpaid principal balance, bringing that borrower's combined loan-to-value ratio to no greater than 115%.
When getting quotes for a Nevada home equity loan, you'll want to make sure that you look over the terms carefully. Hidden fees, like prepayment penalties and credit insurance, can cause serious problems later on. You will also want to make sure you are not lured in by quotes for low monthly payments. Always look for hidden balloons and rate increases.
A $500 incentive!! In hardest-hit areas like California, Florida, Arizona and Nevada, many under-water properties have a second lien, legacies from the days when real estate values were soaring. So, if these people are current on their first and second liens, and remaining equity covers the first lien but not the second, why would the first lender agree to take a hit? Why would the second lender agree to eat thousands of dollars? The FHA Short refinance program will do little - if anything - to help this large group of homeowners who are prime candidates for strategic defaults.
Pay Your Bills on Time - The most important factor affecting your loan rate is your credit score. For that reason, make sure you pay your bills on time, especially in the months leading up to applying for a mortgage. The difference between a prime interest rate and a sub-prime interest rate is phenomenal, and you'll thank yourself for paying your bills on time later when you're saving hundreds of dollars a month on your mortgage payment. FHA rates in Nevada can help you find the right loan for you.
The basic ingredients of the FHA Short Refinance option are: The property must be the homeowner's primary residence. The homeowner must qualify for the new loan under standard FHA underwriting requirements and have a credit score equal to or greater than 500. Only "responsible" homeowners need apply - i.e., the homeowner must be current on mortgage payments. The borrower's existing first lien holder must agree to write off at least 10% of their unpaid principal balance, bringing that borrower's combined loan-to-value ratio to no greater than 115%.
When getting quotes for a Nevada home equity loan, you'll want to make sure that you look over the terms carefully. Hidden fees, like prepayment penalties and credit insurance, can cause serious problems later on. You will also want to make sure you are not lured in by quotes for low monthly payments. Always look for hidden balloons and rate increases.
A $500 incentive!! In hardest-hit areas like California, Florida, Arizona and Nevada, many under-water properties have a second lien, legacies from the days when real estate values were soaring. So, if these people are current on their first and second liens, and remaining equity covers the first lien but not the second, why would the first lender agree to take a hit? Why would the second lender agree to eat thousands of dollars? The FHA Short refinance program will do little - if anything - to help this large group of homeowners who are prime candidates for strategic defaults.
Pay Your Bills on Time - The most important factor affecting your loan rate is your credit score. For that reason, make sure you pay your bills on time, especially in the months leading up to applying for a mortgage. The difference between a prime interest rate and a sub-prime interest rate is phenomenal, and you'll thank yourself for paying your bills on time later when you're saving hundreds of dollars a month on your mortgage payment. FHA rates in Nevada can help you find the right loan for you.
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Want to find out more about FHA rates Nevada, then visit Jim Williams's site on how to choose the best FHA mortgage rates in NV for your needs.
posted by Vittoria @ August 16, 2012
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