Across the United States, mortgages are a topic under constant scrutiny, transformation and importance to both buyers and the economy. Real estate prices, urban and rural growth and consumer opportunities are vital aspects of the constantly change and growth of the Nevada mortgage market, highlighting effects of diverse factors effecting property consumers in the state.
As a secured loan on real property, mortgages can vary, depending on the location consumers reside. Diversity of mortgages from place to place highlights the importance of understanding the various laws, requirements, costs and array of conditions in one’s state a vital aspect of mortgage comprehension.
Nevada Real Estate Prices
Roller coaster real estate prices in Nevada highlight important factors holding valuable power over the state’s property market. In Nevada, real estate prices have, in the past, relied heavily on the outside economic environments of the nation as a whole and underlying relationships with interest rates, tax credits and mortgage tendencies. Historically, Nevada has been a state that experiences the highs and lows of the real estate market on a magnified and extreme level. A tumbling real estate market in the past resulted in a crashing market in the Silver State, especially more metropolitan areas like Las Vegas.
High rates of foreclosure grasping the rest of the United States, affected Nevada, specifically Reno and Las Vegas metropolitan areas in an even bigger, more serious way, suffocating the real estate market. An increase in foreclosures arriving on the housing market resulted in a devastating drop in home prices, even those on the market that were not experiencing the effects of foreclosure.
While the real estate market in Nevada is often relational with the economy of the rest of the United States, its housing market also hold as vital alliance with the gaming industry, an important aspect of the states economy. A suffering industry has, in the past, resulted in a struggling housing market with a job market directly related to the highs and lows of casinos in Nevada. With the housing market in Nevada so reliant on the gaming industry successes or failures, the state has been know to fluctuate exponentially depending on the economy of the United States as a whole. A poor U.S. economy affects Nevada in an amplified way because of the importance the gaming industry has on the employment rates, which in turn, continues to affect the foreclosure rate, negatively impacting the Nevada real estate market.
On the other hand, while the rest of the United States picks up the pieces resulting from a failing or distraught economy, Nevada has been known to be a quickly recovering state, one of the nation’s leading states in real estate recovering. Low, low’s and high, high’ are often characterizations of the casino and tourism reliant state.
Real Estate in the United States: Comparing Nevada
Despite the strong impact a struggling economy has over other states in the U.S., employment rates and foreclosures are not as negatively affected because of the various industries calling an array of states “home.” With gaming a major player in the Nevada economy, a slow in tourism and gambling can be a devastating, resulting in a slumping real estate market. The rest of the United States, with the exception of states like California, are definitely affected by a slowing economy, but do not experience such extreme high’s and low’s within the real estate market.
Home prices in the rest of the United States have been historically steadier than real estate prices in the Silver State, although they, too, have experienced high’s and low’s in the real estate market. Skyrocketing real estate markets and slumping housing prices in the United States are typically exaggerated in the Nevada housing market because of the relationship the whole U.S. economy has on the state so reliant on tourism and gambling.
2007: A Case Study Example
Exhibiting the major differences between the real estate market in the rest of the United States in contrast with the mountain tops and valleys of Nevada, the year 2007 is a great example major differences and similarities. With a median home prices topping off at $350,000 before the real estate market crash, 2010 median prices dropped to $200,000. The rest of the country, according to the U.S. census, experienced median real estate value decreases around $31,000 while Nevada’s real estate market dropped almost as much as $150,000.
Las Vegas and Other Quickly Growing Locations
With two basic areas of population growth typifying the entire state, surrounding, more slowly populating rural towns in Nevada escape much of the industry and community surges. In 2008, over 85 percent of Nevada’s population resided in its largest city, Las Vegas, a mecca for the gaming and tourism industries. Las Vegas, in fact, has also long been one of the United States’ fastest growing cities. While Las Vegas is notorious for swelling in population, the suburban cities outside of the booming metropolitan, like Summerlin and Henderson, are competing as the fastest growing cities in Nevada, with residents seeking the occupational, finance boosting opportunity of Las Vegas city limits accompanied by the charm, housing prices and smaller city life of the suburbs.
Types of Mortgages Offered in Nevada
Mortgage interest rates and refinancing rates in the state of Nevada include:
- Conforming Mortgage Rates
- Super Conforming Home Loan Rates
- Jumbo Loan Interest Rates
- Fixed Rate Mortgages
- Adjustable Interest Rates
- Interest Only Home Mortgage Rates
- FHA Mortgage Rates
Mortgage Descriptions: What Does it Mean?
With a variety of mortgages available to consumers in Nevada, it is important to understand the differences and unique features of each type in order to discover the mortgage right for each particular situation and borrower.
Conforming Mortgage Rates are rates that are on mortgages that are approved by the Federal Housing Finance Agency (FHA) and the criteria they establish. For those mortgages that meet the criteria establish by the FHA, can be purchased by Fannie Mae and Freddie Mac. Lower than jumbo rates, Conforming Mortgage Rates and the accompanying process insures that banks are able to resell the loans that have been made. The terms for Conforming Mortgage Rates are available for 40, 20, 25, 20, 15 or 10 years.
Super Conforming Home Loan Rates have larger loan amounts, for higher cost real estate, but continue to meet the criteria established by the FHA.
Jumbo Loan Interest Rates are often greater than conforming rates because it is not guaranteed that the banks can sell the mortgages following loan completion.
Fixed Rate Mortgages are the most prevalent type of mortgage in the state of Nevada with a mortgage rate and monthly payment that remains fixed for the life of the loan.
While Adjustable Mortgage Interest Rates remain stable throughout a certain period of time during repayment of the loan, they fluctuate every year following the period of stability.
Interest Only Mortgages require the borrower to pay only the interest on the principle amount loaned. After a specific period of time, the borrower will then begin paying both the loan balance payments and the interest.
FHA Mortgage Rates are the lowest of the various mortgages represented in Nevada because of the low risk. If the loan is defaulted on, FHA will pay the lender money owed on the property.
Foreclosure Process
When a borrower in Nevada does not have the ability or money to pay for the payments owed to lenders on a mortgage, the loan will become delinquent and the borrower will go into default. In the state of Nevada, a loan can sometimes remain in default for up to 90 days if the buyer does not make required payments and the loan remains delinquent. It can take as long as 116 days for required foreclosure paperwork to be filed. Although default can last as much as 80 days, as soon as the account is in default the foreclosure process can begin as the lender files the proper paperwork: the notice of foreclosure. Intent to foreclose is filed within the Nevada court system.
Time Frame
From the beginning, when foreclosure paperwork is filed with the court system, to the period of completion, the process can last between 120 day to 9 months or more depending on whether or not the home buyer, in foreclosure, protests against the proceedings. A borrower in foreclosure usually cannot prevent the sale of the property in question, although they may gain a longer period of time residing in the home by challenging the foreclosure.
Foreclosure Specifics in Nevada
Foreclosures in Nevada can include both judicial and non-judicial proceedings, meaning that a judge may or may not oversee the process depending on which type of proceeding is established. In a judicial proceeding, a borrower has until the judgement is made to make payments and reestablish the loan. Non-judicial foreclosure can result in a more difficult process of re-selling the property by the lender since the original buyer can come back and pay off the debt, redeeming the original title of the real estate. Foreclosure on a Nevada property does not leave the borrower off scott-free. Instead, a lender may sue the borrower if they cannot gain enough proceeds to pay off the initial debt left by the buyer after defaulting.
Challenges and Rewards Accompanying the Nevada Real Estate Market
With a unique real estate market, various types of mortgages, property prices as well as struggles and successes, the state of Nevada can offer both valuable and poor opportunities within the housing market. Understanding the diverse transformations that occur as well as obtaining comprehension about relationships between the U.S. economy and the Nevada real estate market can help buyers, borrowers and lenders uncover the particular challenges and opportunities accompanying a housing market so dependent on surrounding financial circumstances.