Financing your Las Vegas home purchase

Financing a Las Vegas home purchase is probably going to be the first step of your home buying process, and it is necessary for you to be fully informed about the process before you begin applying for a mortgage. Here is what you need to know about Las Vegas mortgage rates and financing options before you start shopping for your next home.

Fixed-Rate Mortgages v. Adjustable Rate Mortgages

Las Vegas home purchases are typically financed through one of two mortgage options: a fixed-rate mortgage or an adjustable-rate mortgage. A fixed-rate mortgage has a set interest rate that does not change over the life of the mortgage. This interest rate is based on the current national interest rate, your credit rating, and the term of the loan. The longer the loan's term, the higher the interest rate will be. Also, the lower your credit rating, the higher the rate will be. Rates can also vary between one lender and the next.

Your second option when financing a Las Vegas home purchase is an adjustable rate loan. These mortgages typically have a lower rate at the outset than fixed-rate loans, but the amount can and often does increase over time. This means over the life of the loan, the fixed-rate option usually ends up being more affordable, unless you plan on selling your home or paying off the loan within a few years.

If you choose an adjustable rate loan, read all of the details carefully. Each lender will disclose how long your initial rate will last, and how much the rate can increase each time it is re-evaluated. Often, these loans will offer a low initial interest rate for a period of a few years, so you need to know how long the lower rate will last before you make a decision about the right loan for your home purchase.

Making the Choice

Choosing between a fixed and an adjustable rate mortgage starts with understanding your needs. If you intend to stay in the loan for just a few years, an adjustable rate mortgage will give you a lower monthly payment. If you are planning to live in your property for the long term, you will be at the mercy of the lender with an adjustable rate loan. In this case, a fixed-rate mortgage is probably the wiser choice.

Once you know what loan is right for you, shop around for a lender with the most affordable rates and fees, as well as a solid reputation. Because of competition, interest rates will be fairly steady between one Las Vegas lender and the next, so look at the closing costs and other fees to find the most affordable loan option.

Average Las Vegas Mortgage Rates

Because of the current economic situation, Las Vegas mortgage rates are quite low. This is one of the most affordable times for financing a Las Vegas home purchase. Current mortgage rates in Nevada are between 3.3 and 3.6 percent for a fixed-rate mortgage, with a slightly lower rate of 2.9 percent for adjustable rate loans. If you are considering purchasing a home in Las Vegas, these historically low rates indicate that now is the best time to search for affordable financing, so start talking to lenders today.



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