The State of Nevada is a large state located in the southwestern part of the United States. It is the 7th largest state in the country in terms of area and 35th in terms of population. While it has a few very large cities, it is one of the least densely populated cities in the country. Nevada has a few different markets that see a lot of housing activity, which makes it one of the leaders in the country when it comes to mortgage origination.
Nevada Mortgage Laws
Like all other states in the country, Nevada has some specific mortgage laws that all borrowers and lenders need to be aware of. First, Nevada has no restrictions when it comes to house flipping. While other states have different taxes or fees that need to be paid by home flippers, Nevada does not have any form of penalty. Mortgage lenders in the state are also not permitted to include prepayment penalties in any mortgage documents, which is an advantage for borrowers, which differs from statutes in many other states.
Current Rates in Nevada
Interest rates in Nevada tend to be a little bit lower than the national average. While the interest rates have increased in recent months, they are still near historical lows. Those that are looking for a 30-year fixed rate mortgage will pay around 4.20%. 15-year mortgages typically come with rates around 3.35% while 5/! ARMs will have interest rates around 3.25%. The interest rates citied are for the most qualified borrowers that have strong incomes and high credit scores. Those with lower income or scores will have to pay a higher rate and additional mortgage insurance in some cases.
Health of Housing Market
Overall, the housing market in Nevada has been very turbulent over the past 10-15 years. The housing markets around Las Vegas and Reno experienced significant improvements in valuation, demand, and supply during the housing bubble. After the housing bubble burst in 2007 and 2008, property values in Las Vegas fell considerably. However, the market has rebounded over the past few years. As the amount of foreclosures and short sales has declined, the average price in Las Vegas has risen back to near its high point.
Nevada has several major cities spread across the state. Las Vegas is the most populated city in the state with a population of nearly 600,000 people. Reno, which is located in the northern part of the state, is second with around 250,000 residents. Henderson and North Las Vegas are both in the Las Vegas metro area and have around 225,000 residents each. The fifth largest city in the state is Sparks, which has a population of 90,000 and is located outside of Reno.