Get the Right Mortgage Now for a Cooling Nevada Market

By Joe Taylor Jr.
Local Lender Columnist
Jan 29, 2007
While the nation's hottest real estate markets are forecast to slow, experts expect home values in Nevada to appreciate as prices stabilize. If you're in the market for a home in Nevada, set a date with a mortgage broker.

According to some forecasts, this year could build a buyers' market in Nevada. Some real estate experts say that the market in the "Silver State" will follow cooling trends in neighboring California, where annual appreciation rates have dropped from 40 percent a manageable six or eight percent.

Home prices in Las Vegas, the hottest market in Nevada, continue to increase, but some experts say prices on resale homes could drop by as much as nine percent this year.

Your Long Term Plans Should Determine the Mortgage on Your Nevada Home

Before you buy a home in Nevada, discuss your options with a mortgage broker. Interest-only loans have become extremely popular, giving homebuyers the opportunity to enjoy rising home values and small monthly payments.

Interest-only loans aren't for everybody, however, especially if you plan to stay in your Nevada home for more than a few years. Ask your mortgage broker about traditional home loans, such as 30- or 15-year fixed-rate mortgages. Interest-only loans' low initial payments may draw you in, but if the market cools to a standstill, you might not be able to flip your property before larger mortgage balloon payments kick in.

Nevada real estate is still an excellent investment, but this once-hot market appears to be stabilizing. A qualified mortgage broker's advice and a bit of research can help you choose the best mortgage for you.

Sources
Las Vegas Review Journal
Realty Times
TMCnet

About the Author
Joe Taylor Jr. has covered business and finance news for Financial Times Television and CNBC. He coaches beginning mortgage brokers to provide better customer service and to understand creative financing opportunities.