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Mortgage Matters is your go-to show for all things home financing. Join Roland and Heidi as they break down the ins and outs of the mortgage world. From first-time homebuyers to seasoned investors, we’re here to guide you with expert insights, real talk, and the latest market trends. Whether you're looking to buy smart or refinance right, Mortgage Matters is your trusted source for smarter decisions and financial freedom. Tune in and take control of your home financing journey.
Announcer 0:00
This is a Kun V studios original program.
Wesley Knight 0:03
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.
Roland Daniels 0:43
Good morning Las Vegas, and welcome to mortgage matters. I'm your host. 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, hey
Heidi Griffith 1:06
there. Good morning. Happy Sunday. Roland, happy
Roland Daniels 1:09
Sunday.
Heidi Griffith 1:10
I'm Heidi Griffith. I'm also a mortgage advisor and your Director of Client Services. My NMLS number is 2247754, real quick before we get started. Let's give a big shout out to our fantastic engineer, dude behind the scenes doesn't get enough credit. Wes thank you so much for all that you do.
Roland Daniels 1:33
Yes, thank you so well, Heidi, we're just a few days away from Thanksgiving. Gobble, gobble. Are you ready for all of the turkey cakes and pies. I
Heidi Griffith 1:43
am ready. I already started planning what's on my plate. Seriously, though, I really do believe Thanksgiving is about way more than delicious food. It's about being grateful. And I've got to say, I'm really grateful that we get to be here every week and help folks take the first step towards their dreams to home ownership. Absolutely.
Roland Daniels 1:59
So Thanksgiving is all about family and building traditions, and for so many, that starts with having a place to call home. And that's what we're here to talk about.
Heidi Griffith 2:12
We are. We are. Today we're going to be talking about renting versus owning. Why? Now might be the right time to start your home ownership journey. Plus we're actually going to highlight our class that's upcoming and discuss common fears about buying. And we actually also have a question of the week that we hopefully can get to. So let's get today's show started with a question that we hear all the time, should I keep renting or what do you think Roland is now the time I should buy a home?
Roland Daniels 2:37
Well, Heidi, that is an important question. And with how much rents have climbed in Las Vegas, it's worth taking a look at the numbers. Heidi, can you break it down for us?
Heidi Griffith 2:49
Yeah, absolutely. So I'm sure that the majority of us listening here, right? We know that rents continue to go up in Vegas. We hear the horror stories so often, you know. And now it's scary, because a $50 a month rent increase is kind of cheap, because we're hearing 200 300 We've even talked to people that their rent just recently went up $600 a month. Imagine that in one year, one year, next year, 600 bucks a month. That's crazy. So it is absolutely, really, I don't even want to think about what people on a month to month lease are facing, because it could go up after that 30 days, right? Of course. Yeah. And here's some interesting numbers. The average rent for a single family home in Las Vegas has jumped from $1,190 that was in 2019 to nearly $2,100 today, it's jumped from $1,190 in 2019 today, the average sits right here in Vegas at $2,100 a month. That's a 40% increase in just five years. So if you're renting now, you're probably spending, well, let's look at it, $24,000 a year in just rent, and none of that is building anything for your future. So
Roland Daniels 4:06
that's almost $1,000 increase within five years. Think about it. So when you rent, you're helping your landlord build wealth, not yourself. And let's put it into perspective, in just three years of renting, that is just about $72,000 and just imagine if you've been renting for 10 years, and let's say that $2,000 a month never increases. Now you're looking at $240,000 right out of the window. Imagine what you could do for your future if you were using that money towards your own home?
Heidi Griffith 4:44
Yeah, exactly. And that's why we always say, stop building your landlord 12th, and start building your own because owning a home allows you to take the same money and invest it in something that grows in value over time, your home.
Roland Daniels 4:57
Yes, we want you to have your own home. So let's talk about what happens if you decide to wait to buy a home. Waiting might seem like the Safer Choice, but it can actually cost you more money in the long run. It sure can, right? So if you've been watching the market, you know that home prices are on the rise. So let's say a $350,000 home increases in value by just 5% next year, that home will cost approximately $367,500
Heidi Griffith 5:32
and wait, that 5% increase is that's pretty actual. That's what we see. That's a fair market, right? That's not even a normal yearly basis. We've seen prices increase as high as, what was it? 24% 20 year over year, 20 to 25% year old. You're being conservative with that,
Roland Daniels 5:50
yes. So that extra $17,500 that you will need to qualify for, and depending on your own personal finances, your income, your debts that you owe, and at some point, some people will even get priced out of the market. True.
Heidi Griffith 6:08
That's unfortunately already happening. We're already seeing people priced out. And it's not just about home prices either. It's about interest rates too. So a small increase in rates, combined with that higher price could really make a big difference in your monthly mortgage payment. Couldn't it? It could
Roland Daniels 6:26
make a huge difference. So that's why, by now, even if rates are higher than you would like, can make sense. You can refinance when the rates drop, and they will, but for you might not be able to go back in time to get today's home prices.
Heidi Griffith 6:47
Yeah, because it's all about playing the long game. Every month you own you're building equity instead of watching your rent money just disappear. And the equity can become a safety net for emergencies or even investments in your future, right?
Roland Daniels 7:00
So and beyond the numbers, there's the stability that comes with home ownership. It's knowing that you're in control from locking in your housing costs to create a space that truly feels like yours, right?
Heidi Griffith 7:15
Right? Because typically, landlords aren't going to let you paint, and if they do, you've got to spend the time before you move out to paint it back, they're not gonna, you know, allow you to change the countertops, right? And even if they did allow you, are they gonna reimburse you for it? Is the major question, right? Probably
Roland Daniels 7:31
not, and they may make you turn it back the way it used to be. You never know. Well,
Heidi Griffith 7:37
they usually will. Yeah. So here's an interesting fact here, right? Did you know that the average homeowner's net worth is nearly 40 times more than that of a renter, 40 times more as a homeowner than it is a renter. And let's
Roland Daniels 7:54
not forget that the bigger picture owning a home isn't just about stability or equity for yourself. It's also about building wealth for the next generation. And that's not just coincident. It's the power of investing in real estate. And the best part, it doesn't matter if it's your first home or maybe your fifth home, every step adds to your wealth over time. Generational wealth is something that we are really passionate about. When you own a home, you have an asset that can be passed down to your children or even used to fund their education or start a business. Owning a home or property can help create a lasting financial stability, homes generally increase in value over time, and with smart management, the equity or value that you build in in your home can be used to create even more wealth. So for example, a long term mortgage lets you take the benefit of rising property values and inflation in a smart way. So it's like a ripple effect.
Heidi Griffith 9:05
Yeah, it is. And if you're thinking, Well, my family never owned a home, no big deal. I really encourage you to rethink that be the one to break the cycle your decision to own today could actually change your family's future for not just this generation, but for many generations to come,
Roland Daniels 9:23
definitely something to think about, yep, yep.
Heidi Griffith 9:25
So now that we've talked about why owning a home is such a big deal, let's shift gears for a second and talk about how to actually get started. So one great first step is our path to home ownership workshop, isn't it?
Roland Daniels 9:37
It is, and it's happening on Saturday, December the seventh, from 8:30am to 3pm this workshop covers everything you need to know about budgeting, credit, preparedness, down payment assistance and even market trends from a realtor, absolutely,
Heidi Griffith 9:54
and let's not forget that you'll actually get to meet and speak with and learn from. Them, HUD, certified counselors and role insured that you're there to teach the mortgage portion, aren't you?
Roland Daniels 10:05
I do and we cover what to expect when starting the mortgage process, how to get pre approved, and all of the do's and don'ts. And I also cover what to do to get ready if you're not quite there yet?
Heidi Griffith 10:20
Yeah, people really do love your presentation. You you give really good information, and you also always get a bunch of great questions. The great thing about this, this workshop that we have, is that it's not just a talk, talk, talk, talk, talk and fall asleep. You actually get to interact. There's always questions during these workshops, and when you attend, you'll actually going to receive your home buyer certificate, and that's going to make you eligible for a ton of rate down payment assistance programs similar to like the Nevada housing division home as possible. Nevada Rural housings home at last and launch plaid, plus it could make you eligible, depending on your income. For the wish match program, that's a four to one match, right,
Roland Daniels 11:03
right? And we have some great programs. This isn't just a lecture, it's a hands on, an opportunity to ask questions, get personalized advice and leave a clear action plan. Plus we're providing lunch and snacks so you'll be fueled up and ready to learn,
Heidi Griffith 11:23
because everybody likes pizza, don't they? They do. So one topic that always comes up in these workshops is credit. And it's interesting, because you would think it would be the money, right? You think the money would be the biggest topic. It's not. It's credit, right, right? Most of the time there are credit questions. Yeah, always credit questions. And so let's talk about just some quick tips on how to improve your credit if it's not quite where you want it to be right now, how about that?
Roland Daniels 11:47
Absolutely. So the first thing is to focus on paying down those credit card balances. Keeping them below 30% of your credit limit is a quick way to boost your score and of course, always pay your bills on time, always payment history accounts for 35% of your credit score, which is the largest part of your FICO score, right?
Heidi Griffith 12:13
It's the biggest part of the pie, right? It is definitely the biggest part, and that's the biggest one so, and that's a great thing, and we've talked about it in past shows. But you know, sometimes life happens, and how much does 130 day late, or how much could 130 day late impact your credit score?
Roland Daniels 12:33
That is a great question. So when it comes to a late payment, it can affect your score anywhere from 60 to 140 points and in the opposite direction, which means your FICO score will go down, right?
Heidi Griffith 12:46
So it could go up to a what'd you say? 140 points,
Roland Daniels 12:48
140 points, depending on where you started, that
Heidi Griffith 12:52
could take you from great credit to not great credit. Really fast, very fast. But if it's a one one off, you know, life happens. We things happen in our lives. If it's a one off, you can actually contact your creditor, right, and ask them to remove it,
Roland Daniels 13:07
ask them what they remove, explain your situation. Maybe they tell you, No, it's okay to ask for a supervisor or call back again at another time. That
Heidi Griffith 13:17
is correct. And if you can't get anyone on the phone, I actually suggest writing a goodwill letter to the creditor, explaining your situation. If you have documentation that you're willing to provide based on the reason you were late, whether it was a medical bill or, you know, something that happened in your life. And you can provide that and you're comfortable with it. I say go for it, because if it's a one off, you have a great chance. I feel like most creditors, we've actually seen really great success with most creditors. Now, if you're continually late, that's that's just a different story, isn't it?
Roland Daniels 13:49
Right? Because they will look back and at your history and try to figure out when the last time you made that late payment. If you never made a late payment, you have a great shot at having that removed. Oh
Heidi Griffith 14:01
yeah, they know. They know when you paid last for sure. And so another good tip is actually to become an authorized user on somebody else's credit card if they've got good credit. Remember, we don't want to do this with somebody that doesn't have good credit, and if they've got a solid payment history, that means that they're making their payments on time. And if they're under the 30% utilization, being added as an authorized user will actually give you a nice little credit boost. I've seen it as early as 30 days. Usually it's what 4560 days before you see the increase, but it will increase your score.
Roland Daniels 14:35
It will and let's not forget about down payment. A lot of people think they need 20% but that is a myth. There are programs that allow you to buy a home with as little as 3% and some even cover the entire down payment.
Heidi Griffith 14:52
Yeah, and if you're utilizing down payment assistance, in most instances, that's going to cover your whole down payment, right? And in a lot of instances, it will even contribute towards your closing cost. Yes, correct, right, right. So that's a game changer for a lot of people. If you're ready to take the first steps, our workshop is going to be the perfect place to start.
Roland Daniels 15:12
So Heidi, let's talk a little bit more about down payment assistance for a moment, because we hear so many myths about it. All
Heidi Griffith 15:20
the myths around down payment assistance, huh? The first one right is that there isn't money available. We hear it a lot, at least on a weekly basis, at least on a weekly basis, and not just from consumers. We actually hear it from Realtors too. There's a lot of bad information floating around. There will always be down payment assistance money available, right? There is some programs come and go, but there's going to be money. And a lot of people actually think that down payment assistance programs are only for first time home buyers, or they're only available if you have perfect credit. But that's not true, is it? Right?
Roland Daniels 15:52
So we have some programs offer assistance even if you've owned a home before, so as long as you meet certain criteria, and when it comes to credit scores, you don't have to have perfect credit to be approved for them. You
Heidi Griffith 16:08
do not, you do not have to have perfect credit. You do not, do not have to have first so. And let's define what a first time homebuyer is really quickly, because most people think first time homebuyer means you've never owned a home in your life, right? What does it mean?
Roland Daniels 16:21
It means that you haven't owned a home in the last three years. So
Heidi Griffith 16:26
if I owned a house four years ago, I You are eligible. I'm a first time homebuyer, yeah, so you are Yeah, so good to know, right? So another myth is that down payment assistance programs, this is a good one. Down payment assistance programs take forever to close. We hear that a lot too, but honestly they don't and I'd like to also bring into this conversation, VA loans, we hear that one a lot, that they take too long. This is not true. Down Payment Assistance. NVA loans take the same amount of time as any other type of loan, an FHA, a conventional they take the same amount of time you want to make sure that you're working with a lender who understands those programs, but they don't take any longer. No,
Roland Daniels 17:11
usually there's two extra forms you have to sign, and then it takes us probably anywhere between five or 10 minutes in the background. Yeah, that's
Heidi Griffith 17:19
behind the scenes. Nobody even sees that happening. And you sign so many papers when you purchase really, two papers is nothing, right?
Roland Daniels 17:27
Yep, so it's about the same amount of time. Yeah. And but here's the kicker, most people who qualify for down payment assistance don't even realize it. So a recent study came out, and it showed that about 80% of the people qualify for down payment assistance programs, but only about 18% have taken advantage of them.
Heidi Griffith 17:47
Okay, so say those numbers again, 80% of
Roland Daniels 17:52
people qualify for down payment assistance programs, but only about 18% have taken advantage of them. Wow,
Heidi Griffith 18:00
that's crazy. So I would be curious. I don't know if there's any numbers out there, if we could find those numbers, but I would be curious to know, out of that, let's say 80% of people who qualified but didn't take you know, 18% took advantage of it. Out of that remaining numbers, I would be interested in knowing how many people just ended up not buying a home because it was out of reach because of the money? Yeah, I
Roland Daniels 18:23
think it's going to be very interesting. It's
Heidi Griffith 18:25
a great question, right? Yes, it is, because I know we actually spoke with someone just last week in our Nevada housing class. We spoke with somebody, and they had said that they tried to purchase a home before they got halfway through the process. They were going to be utilizing a down payment assistance program. That was the deal. I know as a fact. I won't talk about what program that was, but I know as a fact that program is still available and has never run out of funds. Unfortunately, they were told that. They were told that the program had run out of funds, and so that they didn't go any further. The only reason why they ended up in our class is because they actually saw your ad on social media, okay? And said, Oh, look, maybe I can do this again. So they didn't think it was, you know, available to them, and they walked away from the entire purchase. So that's interesting. 80% of people qualify for down payment assistance. Only 18% take advantage. That's interesting.
Roland Daniels 19:21
It is. So if you're listening and wondering if you would be eligible, you may be closer to home ownership than you think, feel free to reach out. We're at 702-210-2057 that's 702-210-2057
Heidi Griffith 19:42
so while we're sitting here today, let's take a second and let's talk about something most people experience but they don't really talk about. I mean, again, when you think about purchasing a home, you look online, you talk to the experts, you talk to your friends and family about what the steps look like. All of that kind of stuff. But there's something that most people aren't sitting around talking about and thinking about, why they haven't gotten started in the process. I think the number one reason is actually fear, isn't it? Fear is a big reason. So wouldn't you agree that fear is one of the biggest barriers stopping people from buying their first home? Absolutely.
Roland Daniels 20:20
So it's completely normal to feel nervous about such a big decision, but a lot of those fears come from not having all of the facts and not knowing where to start. So let's break down some of the common fears that we hear and why they don't have to hold you back. Let's do it. Okay. So fear is false, evidence appearing real. The thing to remember is you don't have to let it control you. When we start to feel it, let's turn it around in our minds, face everything and rise again. Say that. Face everything and rise. Okay,
Heidi Griffith 21:01
so the first one that I kind of have the negative talk to it, that was
Roland Daniels 21:06
false evidence appearing real. False
Heidi Griffith 21:08
Evidence. Listen to this false evidence appearing real. And the other one was face, face everything and rise. Face, I love that fear. Face, everything and rise. That's beautiful. Yes,
Roland Daniels 21:19
fear is normal, but it doesn't have to stop you with the right mindset, a growth mindset, you can turn that fear into an opportunity to learn and grow.
Heidi Griffith 21:32
That's awesome. And let's not forget the fear of market uncertainty, right? So that's scary. Some people hear about rising rates or prices increasing, and our concern they're scared that they might purchase at the wrong time. Right? You're right
Roland Daniels 21:48
so, and that is a valid concern. But here's the reality, the best time to buy a home is when you are ready. So waiting for that perfect market often means missing out on an opportunity. And remember, the market goes through cycles. What goes up might come down, but what if it doesn't?
Heidi Griffith 22:10
That is that's great. So let's talk really quickly, because you talked about best time to buy a home is when you're ready. We talk to people all the time. And the biggest question that we get is, how's the market right, and what are interest rates gonna
Roland Daniels 22:25
do? First questions,
Heidi Griffith 22:26
do we have a crystal ball? We do not. Well, if we did, but it broke. Yes, we have a broken crystal ball that's not repairable. When is a good time to buy, when you are ready, when you are ready. And so what does that mean, then? Because that's a big one, and it, you know, it sounds, you know, crazier than it is, because maybe you are waiting for rates to come down, and that's your driving force. But maybe you live in a two story home. Maybe you're renting a two story home and you've got a bum knee, right? You need a single story, right? Need a single so could it be the right time to buy now, maybe you your kids are going from, let's just say they're going from, you know, grade school to middle school, and you want them to stay at the middle school in the neighborhood that you're in. That could be a reason, right? It could be a great I mean, so, yeah, yeah. And we ask people all the time, why are you calling us and why do you want to buy
Roland Daniels 23:23
a home? We do ask first question. We want them. We want that answer, right? It's
Heidi Griffith 23:27
really the first question. So and you know, when we talk about prices going up, rates going up, the interesting thing is, that's where refinancing comes in. So if you buy when rates are higher, you're not stuck forever. If you buy when prices are higher, you could potentially be stuck forever, right? So when rates drop, you can refinance, you can lower your monthly payment. It really is a strategy, not a sprint, exactly.
Roland Daniels 23:52
And that's not forget that home ownership isn't just about timing the market, it's about timing your life. Are you ready to build stability? Are you ready to invest in yourself and stop renting? So those are questions that really matter. They
Heidi Griffith 24:13
are. They are, and since we just talked about refinancing really quickly, let's jump into our question of the week. It is about refinancing. And so after last week's show, we actually got an email from Deborah, and Deborah asked the following question. She said, I've been living in my home for about four years, and I love it, but I'm dealing with higher than usual. Higher than usual. That's what it says. Credit card debt, a friend suggested refinancing to help pay it down. How do I know if it's the right time to refinance my home?
Roland Daniels 24:45
Great question. Deborah, so refinancing could be a smart move, especially if you're built up enough equity in your home. A cash out refinance lets you use the equity in your home to pay off those high. Interest rate credit cards and consolidate all of your debt into one payment. That's
Heidi Griffith 25:05
right. That's right. So when you do a cash out refinance in situations like this, it might be the right idea for Deborah. When you do a cash out refinance, you could have a higher mortgage payment. Yes, you could, but we could be getting rid of all of that credit card debt, that is true. So we're getting rid of those payments, kind of rolling them in. It's kind of like when you get those balance transfer offers from credit cards, right? Yeah, so the basis is basically the same. You pay off those debts, they're rolled into the mortgage, and so you're more than likely going to have a lower monthly payment. Yep,
Roland Daniels 25:49
and you're saving money on interest rates charges. Yep, you have all of the different credit card minimum payments that you're rolling into one so it can definitely increase your monthly cash flow, it can definitely
Heidi Griffith 26:02
increase your monthly cash flow. You're definitely going to want to speak to somebody right to see if it's the right time for you, based on all of the numbers. But definitely food for thought, and don't forget, when you do that right, when you do a cash out refinance, when you're in the mortgage you've got potential tax benefits, because mortgage interest is usually tax deductible, and credit card interest is and is it, it is not. So, yeah, you could actually even see more savings come tax season, but it's
Roland Daniels 26:32
important to approach this strategically. Refinancing should be part of a bigger financial plan. So if you're unsure, we can help you figure out if it's the right move for you
Heidi Griffith 26:45
that is correct. So I looked up at the clock, and it looks like we are out of time today. Don't forget to pap the home ownership workshop on December 7. That's actually going to be at CPLC. That's on the corner of Maryland Parkway and Bonanza, right? You can give us a call or text us if you'd like to register for that. I really do believe that it's the first step towards building your future. It
Roland Daniels 27:08
is. And thank you for tuning in to mortgage matters this morning. So as we head into the Thanksgiving week, we want to take a moment to express our gratitude for you, our listeners, clients and the community, Thanksgiving isn't just about Turkey and pie, it's about celebrating the blessings in our lives and the people who make it all worthwhile. As the author melody Beattie once said, gratitude unlocks the fullness of life, it turns what we have into enough and more so. From our family to yours, we wish you a happy Thanksgiving filled with love, laughter and plenty of delicious moments. So don't forget to join us next Sunday at 7:30am right here on K, U, n, b, 91.5 Until then, have a wonderful holiday, and remember we are here for all of your home ownership Questions. Take care of yourself and your mind.
Heidi Griffith 28:13
Bye. You.