Clark Mortgage Rates

Mortgages in Clark County

Deciding how much to pay as a down payment is a difficult decision for any homeowner. There are a few things you need to remember when deciding just how much you would like to put down. To begin with, you should shoot for at least a 20% down payment. This down payment allows you to avoid private mortgage insurance which can increase your payment significantly depending on the size of your loan. If you can afford this size down payment, you should at least put that much down. This amount of down payment also gives you a nice cushion of equity in case of an emergency that requires you to borrow money against your home in a home equity loan. When you are looking at how much money you have in savings and how much you wish to pay up front, it is important to remember all the other costs that go along with purchasing a home. First, there are closing costs. These can sometimes be a couple thousand dollars and there is no point in financing them if you have the money to pay them outright. Often your new house will require a few minor repairs or improvements such as painting, new flooring, or some modern upgrades. All these things cost money, but if you put all your cash into the home you will not be able to pay for the extras. Be sure you also leave enough savings for all the little things that come with owning a home such as lawn care, new rugs, curtains, and even furniture. Putting all this on high interest credit cards defeats the purpose of being financial responsible with a big down payment.

Clark County Home Equity Loans

A home equity loan can be a low-interest way to get the cash you need out of your house. To ensure that you are getting the lowest interest rate possible, you need to take a look at your loan-to-value ratio. The lowest interest rates on home equity loans are below 80% loan-to-value. To figure out your LTV you need to look up the current market price of your home. This can be either the tax-assessed value of your home, or you can check any number of real estate websites that will determine your home’s value. Then you will have to multiply that number by .80. After that you need to subtract the amount you still owe on your current mortgage. What you have left is the amount you can borrow at 80% LTV. You can do the same thing to determine 90% as well. The most expensive home equity loans are the ones that leverage 100% of your home’s value, so try to avoid that at all costs. If you think the bank has determined your LTV incorrectly, it is possible they are not using the same market price that you are. If need be, as for a walk through appraisal to be sure you are getting the most money out of your home and lowest interest rate.

Clark County Loan Modifications

The first step in letting a lender know you wish to try for a loan modification is a letter of hardship. This letter is sent to the lender and outlines your financial situation and what has caused you to fall behind on your mortgage payments. If you are not behind on your payments yet, but you are struggling to make them every month then you are still eligible for a loan modification. Lenders typically look for large life events to determine your hardship such as job loss, death of a co-owner, or recent disability. The letter is important because it is your first step in proving to the lender that you are trying your best to maintain a good relationship. Proving your willingness to try to right the situation is a good first step in convincing the lender to assist you.