Silver lining in current homeownership statistics
Expert says more owners, less renters could be in the cards
It’s a funny thing when you read the statistics about how many U.S. families own their own homes. Those figures usually don’t take into account one simple fact: The number of households in America keeps rising.
Commerce Department data, cited recently by The Wall Street Journal, show U.S. homeownership has declined by 1.2 percent during the first quarter of 2015, compared with the same period a year ago. But there’s another side to that statistic: The number of new renter households rose by more than 1.8 million over that same period.
Reports show rents continue to rise while mortgage rates have remained low. The cost of renting can now be twice the cost of home ownership. When those factors are considered together, it’s clear that housing is at a crossroads — one where renters should migrate toward home ownership for fiscal advantage.
The increasing availability of affordable mortgage financing can help in that transition. That is especially important now, as many previous homeowners have begun climbing back toward financial stability and creditworthiness.
“A lot of people went through some hard times when the housing market crashed, and studies show that over 50 percent of those who would like to own again just assume that they aren’t able to obtain a mortgage loan — so they never even apply. To me, that’s a tragedy — because it’s not necessarily the case,” Rick Piette, owner of Las Vegas-based Premier Mortgage Lending, said.
“New laws and regulations are now in place that were designed to help people get back into a home — or to be able to purchase for the first time. Due to our company’s unique place in the market, we’ve been instrumental in helping hundreds of homebuyers discover they can own again. And it’s a very exciting moment for everyone when we can make that happen.”
Piette helps make that happen through programs like the no-fee loan and nontraditional financing. The no-fee loan lets homebuyers purchase a home with substantially less cash investment. And Premier’s nontraditional loan program, AnotherChanceNevada, can finance home purchases even if you’ve experienced a short sale, foreclosure or a bankruptcy.
“Premier Mortgage is a mortgage broker, which gives our customers two distinct advantages over borrowing from a bank or a mortgage banker,” Piette said. “No. 1, We can shop around for our buyers to find the best loan for their needs, since we’re not tied to only one financial product or institution; and No. 2, Unlike banks or mortgage banks — there’s a limit to what we can earn on a loan.
“So when we say that we offer a nofee loan — that’s exactly what it means. Zero loan origination fee, zero dollars for processing, document or underwriting fees, and none of the other ‘junk’ fees that buyers have become all too familiar with at the closing table. That saves our customers literally thousands of dollars on the cost of their mortgage.”
Erasing the extra financial burden, borrowers are discovering, creates enough savings to let them gain loan approval and get back into a home of their own, Piette said.
Piette recommends new-mortgage shoppers ask questions of the lenders to whom they are referred. If they don’t like the answers they get, they should keep searching.
“We encourage our buyers to compare our loans,” Piette said. “In fact, we’ll let our customers know if they find a better loan, they should take it. After all, we’re not the ones who will be living in that home and making the monthly payments.”
Premier Mortgage Lending, NMLS NO. 393282 is at 701 N. Green Valley Parkway, Suite 125 in Henderson.