Real Estate Information

Las Vegas home buyers!  New changes are in store for FHA mortgage insurance premiums.  John Longstreet with Cornerstone Home Lending submmitted the following analysis today.

FHA is lowering their upfront MIP to 1% as of October 4^th,2010!  The bad news is that they are INCREASING the MIP renewal from .55% to .90%, which, in purchasing terms, will decrease the buying power of your buyers by approximately $7500 from their maximum purchase price.  But, in the long run, is it really bad news?  See how the new premiums will affect equity over time. 

 See below illustration:

 Up front mortgage insurance will decrease to 1.0% for all amortization terms

• Annual premiums will increase on amortization terms >15 years to:
  • .85% on LTV’s <95%
  • .90% on LTV’s >95%

Old MIP vs. New MIP illustration

Based upon a loan amount of $200,000 @ 4.5% rate @ 30-year @ 96.5% LTV:

(*The Borrower Pays $45 more per month which translates into a negative $7,500 in buying power.)

However, if home is sold at year 7:

[*FHA gets $2,102 MORE in MIP but principal balance is $2,175 less, so at year 7, it's basically a "wash". (the same calculation for 5 years, same deal.)]

Bottom line, FHA gets MORE, but the buyer builds up more equity.

As of right now, the MI is still deductible on income taxes (sunset on December 31, 2010).

Just a reminder, that the MI drops off after it reaches 78%, or approximately 10 years!

John Longstreet can be reached at 702-250-0688 cell.  He is based in Henderson, NV with Cornerstone Home Lending.

Areas of high foreclosure activity and low prices, such as Las Vegas, are fast becoming epicenters for real estate investors - or absentee owners.  Coupled with the low prices, the population has remained stable so good renters can be found relatively easily.  Now is definitely the time to buy in Vegas.  To read more about the absentee phenomenon, click on the following link:

http://realestate.nj.com/?classification=real+estate&temp_type=search&tp=RE_nj&tl=42&guid=123360

In the past 12 months, there's been little movement in the median price of a home in Las Vegas and Henderson.  So little in fact, June 2010 prices are the same as June 2009 - $140,000.  Click to our company blog here to read a complete digest of the numbers and download our report.. http://bit.ly/dzKiVL

WOW!  It's really that simple.  Call 702-475-7553 on ANY listed property in the Las Vegas and Henderson market areas and get price and property information right on your phone, right in the car!  Never talk to an agent and it works 24 hours a day!  Las Vegas is still a 24 hour town - no need to wait for the business world to wake up.

Is there finally a silver lining for the Las Vegas economy? Month after month declines in taxable sales have been the news for almost 2 years, so it is a major breath of fresh air to see a gain.  Las Vegas has been the hardest hit major city outside of Detroit in this economic downturn. Read the Las Vegas Sun story here.  http://bit.ly/bCjTuD

A beautiful view, typical in February after a night of rain in the valley!  This place is beautiful!  Taken from Seven Hills in Henderson looking to Mt Potosi seen in the SW part of the valley.

Another down year for Las Vegas and Henderson.  Median prices fell in 2009 ranging from a low of 10% in 89107 and 89123 to down 60% in 89109 - the corridor of high rise condos!  Year over year figures are less than the previous year.  See here.

Big is out.  Smaller and responsible is in.  So is luxury and lifestyle amenities.  Judging on the newest offerings from Las Vegas and Henderson homebuilders, they seem to align with national trends.  How does this top 10 list rate with you? Read this article reported from the International Homebuilders Show here in Las Vegas.  Tell me your one "must have" on your next home.  http://bit.ly/bpT7QQ

REALTOR Magazine published today a short news story about the 10 most undervalued real estate markets in the US.  Las Vegas real estate was #1 on this list by a followed by Vero Beach, FL at number 2.   With home prices now hovering about 65% LESS than their peak values, the pendulum has moved to past a reasonable price correction to extreme as shown here with our now most undervalued honors.  Contact me to BUY TODAY!

Click here to read complete story

There were 4055 closings in the immediate Las Vegas real estate market in December 2009.  HOw buyers bought these homes are as follows;

Cash 40.5%, FHA loan 29.8%, Conventional loan 23.4%, VA loan 4.8%, Other 1.5%

Figures may add up to more than 100% due to rounding.