This past Saturday, the Nevada Senate approved new legislations that would keep payroll tax cuts from increasing and ensure that unemployment insurance does not expire at the end of the year. While the passing of the legislation is good news for the unemployed and employed alike, the Senate will be paying for a two-month extension for the insurance program, which will translate into higher prices for those looking to buy or refinance their homes.
The bill establishes a new mortgage insurance fee, which is essentially an extra $15 monthly fee for mortgages of $200,000 or more. The fee will apply to those getting loans from government lenders. In areas of the state that have been impacted by the economic recession, these rates will be lower in an attempt to reduce the financial impact of the new law. Legislators say that the bill is not likely to discourage people from buying homes in the state.
With the new law in place, legislators hope to increase the competition between private and government lenders. Insurers will benefit from the law thanks to the mortgage insurance fee, but consumers will likely see savings due to highly competitive loans.
The bill is only effective for 60 days, however, and state lawmakers will have to reconvene next year to determine whether it should continue or if similar laws need to replace it.