Mortgage Matters

Wesley Knight 0:00
This is a KU NB studios original program. The content of this program does not reflect the views or opinions of 91.5 jazz and more the University of Nevada, Las Vegas, or the Board of Regents of the Nevada System of Higher Education to

Roland Daniels 0:43
Good Morning Las Vegas. Welcome to mortgage matters. I'm Roland Daniels, a certified mortgage advisor with Geneva financial. My NMLS number is 355859, company. NMLS number is 42056, and I'm here this morning as always, with my fantastic co host, Heidi Griffith, good morning. Heidi,

Heidi Griffith 1:06
good morning. Roland, how are you? I am doing fantastic. Yes, you are happy Sunday. Happy Sunday. Happy Sunday. I'm Heidi Griffith. I'm also a mortgage advisor and your Director of Client Services. My NMLS number is 2247754, let's get the big, the big stuff out of the way. First, how about that? Happy Father's Day to all of the incredible dads out there tuning in this morning. And of course, Roland, Happy Father's Day. Well, thank you. You are very well. I appreciate it, yes. And you know, today feels like the perfect day to talk about home ownership, doesn't it? It does it does. June is national homeownership month, and we're going to talk about what that really means, especially here in Southern Nevada. So whether you're a homeowner, a future buyer, or just trying to figure out your next move, today's show is for you, and since it is national homeownership month, we thought now would be the perfect time to pause and really talk about what homeownership means, not just in theory, but in real life, what it means for families, what it means for legacy, for stability, and how we're helping people right here in our community take those steps each and every day.

Roland Daniels 2:13
That's right. The National homeownership rate is still hovering about 65% but behind that number, there are real people, people building equity, putting down roots and trying to create long term wealth. Owning a home is still one of the clearest path to generational

Heidi Griffith 2:36
wealth. It is, it is. It's one of the easiest ways to get there, isn't it? It is, it is. And we also know it's not easy, right? Because more than 80% of Americans say affordability is an issue where they live, and that's why we spend so much time not just helping people get approved, but helping them understand the process. I really believe that's our mission, don't you? 100%

Roland Daniels 2:56
so we teach classes, we host workshops, we do, and we walk people through it all when it comes to budgeting, credit, the loan process, and the 16 different down payment assistance programs with where it helps us make homeownership possible.

Heidi Griffith 3:16
I agree. I agree. And we just, we just had our last home is possible class with Nevada housing, didn't we? It was last Tuesday. It was great group. It was great question. Yeah, engagement. People were there ready to learn. If you missed it, no worries. We'll actually be announcing July's date pretty soon. We should have that. So keep your eye out for that.

Roland Daniels 3:35
And we've also have our path to homeownership workshop coming up on Saturday, July the 12th, hosted alongside of CPLC, which is a HUD certified housing counseling agency, one of four right here in the state of Nevada. Big stuff, right? And that's our most in depth class, where we go far beyond the basics and teach people how to become successful long term homeowners.

Heidi Griffith 4:06
You know the home is possible. Class with Nevada housing division, we cover all of their down payment assistance programs. We kind of work through the steps of what it looks like to get pre approved, the lending process, the real estate process, but it's an hour. It's an hour and a half with questions and answers, because we take at least 30 minutes to go over q, A, right, right? This. This the CPL, C class, you know, the path to homeownership that class. It's a commitment. It's, you know, it's six hours of your Saturday we will feed you, I promise you. There's always lunch, there's always always snacks. There's always snacks for Heidi, but it's more than an hour of us telling you not only about, you know different programs and how to buy a house, but like Roland said, we not only go into budgeting and appraisals and why you would potentially want. Want to have a home inspection what a home inspector does, right? I mean, it's just, it's so informative that we actually have clients who have taken it multiple times, because three and four times, yes, yeah, because it's such valuable information, people are always really kind. They come up to us after the class and thank us, because there's a lot of information that you can get on Google, right? You've probably searched for how to buy a house, or how to become a homeowner, or what are the steps. This is just one of those classes that you're not going to find on your quick chat GPT or your quick Google search, right? Yeah. So

Roland Daniels 5:35
if you've been thinking about home ownership, and you should, or you're just not sure what your options look like. We are here you can give us a call or text us. That number is 702-210-2057 Again, that's 702-210-2057 and we would love to to talk with you, and we have tools and classes that can help you figure out your next step. So Heidi, let's get into it. We've both been saying it. People are hearing a lot of noise out there, but with very little clarity, and that's where we come in. What's really going on in the market. And what should people here in Southern Nevada be paying attention to?

Heidi Griffith 6:25
Yeah, because right now there's two big stories right there is, one is this gradual but really important shift in the local market, and the other is something happening nationally that could actually change the future of how people qualify for home loans. So let's start there, because most people might not have even heard about it. The government is actively talking about privatizing Fannie Mae and Freddie Mac again.

Roland Daniels 6:49
Now, if those names sound familiar, it's because almost every conventional loan in this country ties back to to one of them in some certain way. That's right, right? They don't lend money directly, but they do buy mortgages on the secondary market right after they are closed, and they keep the system moving. Mm, hmm, so let's break it down a little bit more. Back in 2008 when the housing market crashed, Fannie Mae and Freddie Mac were placed under what's called federal conservatorship. Conservatorship. That means that the government stepped in to stabilize things, because without that support, the entire mortgage market could have collapsed 100% right? And ever since then, they've been operating under government oversight. That oversight comes with rules and a mission based goals like supporting affordable housing, expanding access to credit and making sure lenders aren't just focused on high income or easy borrowers.

Heidi Griffith 7:57
Sounds good. It does, yeah, and now they're talking about making a private again, they are and you know that might just sound like a technical shift, but it really could have real consequences for buyers. Privatization could mean tighter guidelines, higher pricing, right rates, and fewer options for buyers who have decent, but maybe not perfect credit or even limited savings,

Roland Daniels 8:18
right? And this is where FHA VA and other government backed loan programs might come to play in and they may play an even bigger role. So these programs were created to help make homeowners more accessible, especially for first time homebuyers, veterans and people who don't fit into that perfect little lending box?

Heidi Griffith 8:43
Yeah, exactly. FHA loans, for example, allow for lower credit scores and smaller down payments, right? They do so with an FHA loan. To get three and a half percent down, right? All you need is a 580 FICO score, right? And if your FICO scores between 505 79 10% 10% down, but you can still get a loan. So So those programs are available, and like VA loans, right? Those are for active duty and veterans. They can offer incredible terms with no down payment at all, right? We say it all the time. It's potentially the best loan that's out there. And so these programs are already helping bridge the gap, but if Fannie and Freddie move out of government control, this stuff's gonna be even more important. The FHA products, the USDA products, the VA products, don't

Roland Daniels 9:32
you think? Yeah, we just don't know what's going to happen. It's gonna be interesting to see it play out. And aside from that, let's talk about what we're seeing right here in Las Vegas, this market is shifting, isn't

Heidi Griffith 9:44
it? It is, it is, I think on a national level, the market is shifting. Obviously, there's micro markets, right? There's areas that aren't seeing the impact, but inventory has been climbing, so we're seeing more houses on the market. Just last month, we actually saw the number. Of active listings increased by about 10% and you know that's going to bump our months of supply from about 2.95 months to 3.4 months, which might not sound used, but it's enough to start giving buyers the upper hand. And that's not just a theory, it's something we've actually been seeing regularly. So, just so that you understand months of supply, it's kind of how we gage where we are in the real estate market, right when it comes to a buyer's market or seller's market or a balanced market, because that's, you know, that was kind of where we were up to a month ago. You know, buyers had advantages. Sellers had advantages. As we see this increase of inventory, it's gaged by months supply. And how that basically looks is you've got X homes available for sale right now. It's close to 9000 homes in the Greater Las Vegas Valley. You've got X homes for sale, and no other homes, if nothing else was to come onto the market, no one listed a home. It would take this long before we ran out of inventory. So we're just under three previous and now we're up to almost three and a half months. So it's going to be interesting to watch that kind of creep up, or, you know, if it starts to stabilize, to see where we're at

Roland Daniels 11:22
right and let's be real, many buyers have already been getting some great deals they have, and we've seen deals negotiated with seller credits reduce prices and even help with additional closing costs. But what's happening now might just sweeten the pot.

Heidi Griffith 11:42
I agree. I agree, because more inventory means more leverage as a buyer. Doesn't it? It does. It might not always show up in the sticker price, but you know, it can show up in different terms, more room to negotiate, better opportunities at locking down the home that actually fits your needs, versus rushing and trying to buy the first home just in case it's gone right?

Roland Daniels 12:01
And this is what a shift towards a buyer's market can really look like, not a crash, not falling prices, but a more balanced and a a more opportunities for the people who are ready to take action today.

Heidi Griffith 12:16
And by the way, you know, let's, let's take a moment and address headlines, right? Because there's a lot of doom and gloom

Roland Daniels 12:25
one day social media, yeah. I mean, one

Heidi Griffith 12:27
day you could hear that the sky is falling and then the next report is telling you how beautiful everything is. Don't be fooled by crash headlines. Median home price is still hovering around 480 here in Las Vegas, we have not seen a decrease in the median price of homes local experts, and I'm using kind of air quotes when I talk about experts, right, they're projecting price increases, and this was stated so they're thinking anywhere from two and a half percent to four and a half percent increases in 2025 just for reference, that number is a pretty accurate number. When we take a look at long term real estate statistics, but over the past several years, that's an actual small number, because we, you know, we've been seeing upwards of double digits right on increase. So if you're waiting for a steep drop, I don't know the data just right now, it's not backing it up. So if you're a seller, here's some food for thought. It's not 2021 anymore. Homes aren't flying off the shelves. You know, many reports have have shown that there's more sellers nationwide than there are buyers. Yeah, and so if you're planning to sell your house, pricing really is going to realistically matter. Presentation of your home is going to matter, and knowing that your buyer now has choices, that's a big matter, right? Knowing that they can, you know, they can look at five houses and make a decision, versus you're the only house on the block is a big is a big thing. So if you're overpriced or expecting a bidding war, you might be sitting a while.

Roland Daniels 13:59
Yep, that said, if you've owned your home for the last few years, you're probably sitting on a solid amount of equity, right? So selling now isn't a bad thing. You just have to go in with a strategy that fits the current market, not the one from that, say, two years ago, we have more listings with and more competition, and that's just the reality. Yeah,

Heidi Griffith 14:27
so let's talk about affordability for a second, right? Because just because Vegas is cheaper than LA or San Francisco does not mean that it's affordable for everyone does, right? Housing prices have gone up, wages haven't kept up, and people are really feeling that they are, and that's why programs that help with upfront costs, like the one we talked about here in our classes, they're more relevant than ever. There are down payment programs that can help folks, and these programs are tools that help people who are already working hard to get over that initial hump and get into a

Roland Daniels 14:57
home right? And because about. 68% of people say that down payment is the biggest barrier, the largest barrier to homeownership. We hear it daily, right? Which is the down payment.

Heidi Griffith 15:11
You know, I was going to call you, but I was trying to save up. I haven't been able to save up. Here I go again. Life. Life's right? It does. We planned on moving forward in May, but something happened, medical, whatever that looks like. And here we are, life, lives, life

Roland Daniels 15:25
lights. And here's something important. We want everyone to hear. Economists don't always get it right. Say that again, economists don't always get it right. That's right. They are making predictions, but we're living in a market that isn't playing by the old rules. There are global issues, we have inflation, we have government policy, labor shortages, and they're all colliding at the same time. No model predicts that perfectly,

Heidi Griffith 15:57
yeah, and really, that's why we stress the best time to buy a home isn't about timing the market. It's when you're ready to buy a home, when your budget makes sense, when you've got stability and when owning makes more sense to you than continuing to rent.

Roland Daniels 16:12
Right? Because we can't time the market, but the market is always right. It is because here's the truth, we know that the market looks what the market looks like every day. Nobody, including us, has a crystal ball that works anymore. And if you buy smart, you can always refinance when the time is right, but waiting for that perfect moment, that moment rarely announces itself,

Heidi Griffith 16:38
yep, yep. So if you've been thinking about it, if you're not sure what these shifts mean for you, please feel free. You can call or text us. We're at 702-210-2057, again, you can call our Texas our telephone number is 702-210-2057, and we're happy to take a look at the numbers and help you understand what is possible.

Roland Daniels 17:01
And if you are a seller trying to figure it all out, and this is the time or what your home is really worth in this market, we can help you with that. We have data, we have resources to help you make the best decision for you and your family.

Heidi Griffith 17:19
We do. We do. And so Roland, we did some spend some time talking about what's happened in the market. We did. Let's shift gears for a second. Yes, let's talk about the people who already own own a home, right? Yeah, maybe they're not make looking to move right away. Maybe they're still feeling the pressure.

Roland Daniels 17:34
And there are a lot of people in that exact situation there are, right? You bought a home a few years ago, maybe you've gotten a great rate, but life has gotten more expensive. Maybe your credit cards are out of reach now. I mean, they may be maxed out, and we're at 16% grocery prices are more expensive. Medical care costs are increasing. Then, of course, car repairs, right? So it all adds up, and suddenly that monthly budget is stretching or isn't stretching like it used to be, nope,

Heidi Griffith 18:11
nope. And we're talking to the people who are doing everything right, right? You're working, you're making your mortgage payments, but financial margin keeps shrinking, yep. Maybe you're not behind. Maybe you're just treading water. We've all felt like that, right? We have. And here's the thing, if you've owned your home for even a few years, there really is a good possibility you're sitting on actual equity.

Roland Daniels 18:31
And most people don't realize that. I agree. We talk to clients all the time who say, Oh, I didn't think I had enough equity, or maybe I didn't know I could use it for this or that. And when we look at the numbers, they have maybe 80 to $100,000 sometimes even more, just sitting there.

Heidi Griffith 18:53
Yeah, and we're not saying go pull out a bunch of cash and blow it on something ridiculous, right?

Roland Daniels 18:58
You want to be smart with it. Absolutely. It's about strategy, isn't it? It is.

Heidi Griffith 19:01
It's about using the value you already own, your money, your equity is your money, right? It is, and helping to bring some financial relief or even restructure your future.

Roland Daniels 19:12
So let's break down the options. The first and most popular right now is the HELOC. A HELOC is a home equity line of credit. It works almost like a credit card, but it is tied to your home in the interest rates are definitely lower than what you're paying on credit cards today. So people use it for debt consolidation, and others can use it to free up room in their budget.

Heidi Griffith 19:40
I agree. And another option right could be the home equity loan, right? So that's going to give you a lump sum of money with a fixed rate and a fixed payment. It is, and that's a great tool if you know exactly what you need to cover. Maybe you have a specific dollar amount. Maybe you're paying off medical bills, right, right, or even paying down credit cards. Maybe there's tuition that you want to pay for major. Repairs to your home or your car, or maybe you want to knock out just a chunk of high interest credit card debt you want to pay off, you know, $20,000 in credit cards,

Roland Daniels 20:09
right? And then there's the actual cash out refinance. That's where you refinance the entire mortgage and pull some money out at the same time your equity right it is. So your rate definitely will go up in today's world. So if you have that super low rate, this may not be the move for you, but sometimes, if you're drowning in 22% or up 36% in credit card interest rate, debt, a new mortgage, with today's rates might still come out ahead. I

Heidi Griffith 20:45
agree, and it's about, you know, when we take a look at current homeowners, and you know, what do we do with our current property to make it work best for us? Right? It really does boil down to Options. Right? Options. We're seeing a lot of people look at the HELOC products, because they're still able to keep whatever

Roland Daniels 21:01
that two and a half 3% even if it's

Heidi Griffith 21:04
6% today, right? You know, hold on to that, and then take that HELOC. Because if you got a HELOC based on the equity that you had, right, you don't have to use it all.

Roland Daniels 21:14
Nope. It's there when it's available for your using in your choosing,

Heidi Griffith 21:19
yeah, like, a line of credit. It is like a line of credit. So if you know you had, let's just say you had $40,000 that you were able to use. But you only use 10,000 because you paid down $10,000 in debt. The only thing you're going to be making payments on is that $10,000

Roland Daniels 21:34
and we definitely use the HELOC as a strategy to preserve that equity as well. Yeah. So Right? So it's not always about the rate. It's about the total monthly burden and the emotional toll that financial stress can take on you and your family. And if you're up at night wondering how to stretch your check to cover everything, that's a conversation worth having, isn't it?

Heidi Griffith 21:59
Heidi, it is. It is. And you know, I also want to say this, using your equity is not a sign of failure, right? It's not. It's not a desperate move. Sometimes it's the smartest decision in the room. You've built the equity. You've earned it. The question is, does it make sense to let it work for you now?

Roland Daniels 22:15
Or put it another way, okay, if you have a tool in your toolbox that could give you breathing room, it can give you clarity or give you a plan. Why not explore it? I

Heidi Griffith 22:29
agree that's why we come in. Every situation is different. Maybe a HELOC makes sense. Maybe a loan makes sense. Maybe you're better off doing nothing right now and staying put. Yep, yeah, you won't know until you run numbers,

Roland Daniels 22:41
right? So if you're listening and thinking, I don't know if I qualify or I'm not sure what my options are, just reach out. You can give us a call or text us. That number is 702-210-2057 Again, that's 702-210-2057,

Roland Daniels 23:06
no pressure, just clarity.

Heidi Griffith 23:08
Yeah, we'll help you figure out what's smart, what's realistic, and what moves, if any, could make your life just a little bit easier. So before we wrap up today, today's show was really about strategy and possibilities, wasn't it, really it was, yeah, whether you're exploring home ownership for the first time, trying to make sense of the market or looking for smarter ways to manage debt, today was all about giving you information and insights that matter right this moment,

Roland Daniels 23:33
and part of that conversation is about making sure everyone has equal access to housing opportunities. Fair Housing means being treated with dignity and respect regardless of your race, your gender, family status, disability or any other protected category, discrimination has no place in housing period. It has

Heidi Griffith 23:59
no place anywhere, right? Yes, and that's why we're proud to serve on the Board of Trustees for Silver State Fair Housing Council. Silver State Fair Housing Council is Nevada's leading organization for protecting and promoting fair housing. They educate the public, they support people who believe they've been treated unfairly, and they guide them through the process of filing complaints if needed. Right? Yep, they do. One of the most important tools that they actually have is their fair housing Tester program, and they're actively looking for more people to be part of it.

Roland Daniels 24:29
Testers play a critical role in uncovering discrimination that often is hidden right in plain sight. By posing as prospective renters or buyers, they help document how housing providers treat different people in similar situations, and that evidence becomes the backbone of investigations, education and enforcement.

Heidi Griffith 24:56
It is so the Chester program. It's quiet

Heidi Griffith 24:58
work it is, but it's power. Powerful, very

Heidi Griffith 25:01
so if you've ever really wanted to make a real difference in your community, this could be it. So if you'd like to learn more about becoming a tester or to get help, if you've experienced housing discrimination, you can call Silver State Fair Housing directly. Their telephone number is 702-749-3288, again, that number to call silver, the Silver State Fair Housing is 702-749-3288, you can also visit them online. Their website address is S, S F h c.org, so Silver State Fair Housing Commission, S, S F h c.org,

Roland Daniels 25:42
and as always, if you have any questions about anything that we've covered today, or you want to learn more about your options upcoming classes or just fair housing, you can always give us a call or text us. That number is 702 to one Oh 2057, that's 702-210-2057. We'll be back next Sunday morning at 7:30am right here on K, U, n, b, 91.5, until then, keep moving forward, even if the path isn't perfectly clear. And remember, stay true to yourself and your mind. Bye. You.

Transcribed by https://otter.ai