Stabilizing Prices in Nevada Means Great Mortgage Opportunities

By Joe Taylor Jr.
Local Lender Columnist
May 16, 2006
While analysts expect the nation's hottest real estate markets to slow down this year, predictions for Nevada show that home values there will continue to appreciate and prices will stabilize. Mortgage rates shouldn't exceed 7% this year, so mortgages, even in Nevada's high-priced market, could still be affordable.

According to some forecasts, this year could bring more of a buyers' market to Nevada. Some real estate experts say that the market in Nevada will follow cooling trends in neighboring California, where appreciation rates have dropped from as much as 40% to a more sustainable 6-8%. Home prices in Las Vegas, the hottest market in Nevada, are continuing to increase. However, some experts say prices on resales could drop as much as 9% this year.

Nevada Brokers Can Help Choose the Right Mortgage

Before you buy a home in Nevada, talk to a mortgage broker about your options. Interest-only loans have become extremely popular in Nevada, but exercise caution if you plan to stay in your home in Nevada for more than a few years. Ask your mortgage broker about more traditional plans, such as 30- or 15-year fixed rate mortgages, which will provide steady payments over the life of the mortgage. Interest-only loans can be appealing for their initial low payments, but when you begin paying on the principal of your loan, your payments will balloon.

Real estate is still an excellent investment in Nevada, but the future of this once-hot market is not as certain as it has been in recent years. Advice from a mortgage broker coupled with your own research can help you choose the best mortgage to finance your Nevada home.

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.