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Lending / Financial

Buying real estate is even more challenging for those of us whose eyes glaze over at the mere mention of decimals, percentages or anything else that even hints of mathematics.


The financial aspect of purchasing the largest investment of your lifetime, though, is the most important. Nobody wants to lose money. Nobody wants to leave money on the table.


If you're in the market for information on mortgages, credit scores and interest rates, you've come to the right place. The financial and mortgage pros here at ActiveRain even tell you how to shop for and compare lenders, how to raise your credit score, how to get a mortgage after a short sale or foreclosure and how to get pre-approved for a mortgage loan. Even Mom and Dad can't give the great advice you'll find here at ActiveRain.


Plan to spend some time here because ActiveRain's content library is massive. Lucky for you we've arranged it so that it's über user-friendly. You'll be amazed at how easy it is to put your finger on just the information you're looking for without having to surf a million other pages.

Recent blogs on Lending / Financial
By Charles Stallions, 850-476-4494 - Pensacola, Pace or Gulf Breeze, Fl.
(Charles Stallions Real Estate Services )
Charles Stallions, CBR, CRS, is a local historian and real estate expert. Whether buying your first home, an investment property, or downsizing, do as the locals do; call or text Charles at 850-476-4494 and be well informed.  There are many rules and regulations when buying a home in Pensacola through a lender. For instance, your lender will want to know the origin of your down payment funds. If you're contemplating giving or receiving down payment assistance, here's a comprehensive breakdown of the standard rules and prerequisites.What Constitutes Down Payment Gifts? A down payment gift refers to money given to a buyer from another party to be used towards a down payment or closing costs during a home purchase. These gifts don't necessitate repayment.Gift Regulations and Documentation ...
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By Bob Elliot, 30+ Yrs Industry Experience
(eXp Realty)
Mortgage prepayment penalties are fees charged by lenders when borrowers pay off their mortgages before the agreed-upon term. These penalties are designed to compensate lenders for potential lost interest income and can significantly impact borrowers who want to pay off their mortgages early. Here's what borrowers should watch out for and how to avoid or mitigate prepayment penalties:Understand the Terms of Your Mortgage Agreement:Before signing any mortgage agreement, carefully review the terms and conditions related to prepayment. Look for information about prepayment penalties, including how they are calculated and under what circumstances they may apply.There are generally two types of prepayment penalties called hard prepayment penalties and soft prepayment penalties.Hard Prepaymen...
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By Joseph Lorenzo, Your Law And Order Realtor
(Frank Rubi Real Estate LLC)
In our series "Real Estate Terms You Should Know," today we are going to talk about what is meant by Refinancing. This financial strategy can be a game-changer for homeowners, offering opportunities to reduce monthly payments, shorten the term of a loan, or tap into home equity for large expenses.Refinancing involves replacing your existing mortgage with a new one, typically with different terms and a new interest rate. This process can lead to significant financial benefits, depending on your goals and the current economic climate. Homeowners might choose to refinance for several reasons: Lowering the Interest Rate: If interest rates have dropped since you took out your original mortgage, refinancing could reduce your monthly payments and the total amount of interest paid over the life...
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By Dan Dee McGinnis The Pumpkin Man, The Pumpkin Man
(HomeSmart)
Have you ever heard that statement before: Everything will be all right in the end? The remainder of that is if it is not all right it is not the end. That may be hard to believe, but when you really think about it, and look back at any of the bad things that ever happened to you or our country. Not agreeing with me right now, go with me a little farther. Look at your parents, your grandparents, they had some situations that were unbearable, negative, heartbreaking, but they got through them. Lets take a step farther. I am sure you believe in God, right? And you know God is in charge! What is going on right now in our country and in the world, God sees everything. And when God decides you, or I or a certain number of people in certain areas of the country or world have had enough, there...
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By Joe Jackson, Clintonville and Central Ohio Real Estate Expert
(Keller Williams Capital Partners Realty)
From understanding mortgage relief options to effective communication with lenders, this guide empowers homeowners dealing with injuries to safeguard their homes. Whether you're currently facing difficulties or proactively preparing for potential hurdles, discover actionable steps to steer clear of foreclosure. Arm yourself with knowledge and resilience in this insightful exploration of maintaining homeownership amid life's unexpected challenges.Have a super fantastic week!Joe Jackson, Realtor-KWCP Life can be unpredictable, and sometimes, unforeseen circumstances can throw us into financial turmoil. Imagine this: you've suffered a debilitating injury that not only affects your physical health but also puts a strain on your finances. Medical bills pile up, and you find yourself unable t...
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By Bob Elliot, 30+ Yrs Industry Experience
(eXp Realty)
The largest and most impactful financial data being released is as always the Federal Reserve rate decision. This time it fit well within the expectations across the broader market and lending partners, in that the Federal Reserve still remains to hold the current standing, and is showing push back on any potential rate cuts coming March when the next rate decision is planned. Most of the economic indicators from last year and this month have added fuel to the speculation that the Federal Reserve has largely met their goals and there is a strong upside pending rate cuts. The other rates of note are ISM manufacturing numbers, which have fallen in line showing growth at the start of the year. Consumer sentiment also has jumped to the highest levels in the last two and a half years.Federal...
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By Charles Stallions, 850-476-4494 - Pensacola, Pace or Gulf Breeze, Fl.
(Charles Stallions Real Estate Services )
It's time for Markets in a Minute! Here's your weekly look at what's happening with rate movement, the economy, and the housing market. The video will give you an overview, and if you want to dive a little further, click here. Average Long-Term Mortgage Rate Eases to 6.63%  Freddie Mac’s chief economist said rates will continue decreasing as inflation decelerates. Mortgage rates are at one of the lowest levels in a year.  Pensacola — The average long-term U.S. mortgage rate eased this week, welcome news for prospective homebuyers as the spring homebuying season approaches. The average rate on a 30-year mortgage fell to 6.63% from 6.69% last week, mortgage buyer Freddie Mac said Thursday. A year ago, the rate averaged 6.09%. Borrowing costs on 15-year fixed-rate mortgages, popular with ...
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By Joseph Lorenzo, Your Law And Order Realtor
(Frank Rubi Real Estate LLC)
In our series "Real Estate Terms You Should Know," today we are going to talk about what is meant by the term "principal." This financial term is fundamental in the context of mortgages and real estate financing, playing a crucial role in every homebuyer's journey.The principal is the original sum of money borrowed in a loan or the remaining balance of the loan, excluding interest. In other words, it's the core amount that you owe to the lender before any interest is added. When you make a mortgage payment, a portion of that payment is applied to reduce the principal, and the rest covers the interest charged by the lender.Understanding how the principal works is important for several reasons. Firstly, it affects your monthly payments; as you pay down the principal, the interest portion ...
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By Joseph Lorenzo, Your Law And Order Realtor
(Frank Rubi Real Estate LLC)
In our series "Real Estate Terms You Should Know," today we are going to learn what is meant by "pre-approval." This term is essential for buyers in the real estate market, as it significantly impacts the home buying process.Pre-approval is a lender's conditional agreement to lend you a specific amount of money for the purchase of real estate, based on a preliminary review of your creditworthiness and financial situation. To get pre-approved, you will need to provide your lender with some financial information, including your income, assets, debts, and credit score. The lender will then use this information to determine how much money they are willing to lend you, what interest rate they will charge, and what the terms of the loan will be.Getting pre-approved is a crucial step for poten...
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By Bob Elliot, 30+ Yrs Industry Experience
(eXp Realty)
Those who are involved in the real estate industry likely know that mortgage rates are at an all-time low. At the same time, nobody wants to pay more for a house than they have to. Some of the most important factors that dictate how much someone is going to pay for a house include points and interest rates.While interest rates are incredibly low, there is a way to make them lower. This comes in the form of points. This is additional money that is paid upfront to get a better deal over the life of the loan. Even though this sounds great in theory this might not be the best option for everyone. There are a few important points to keep in mind.What Are Points?Often, the lender is going to offer someone the option of paying points when the mortgage is created. This should be viewed as payin...
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By Jonathan Hall, Realtor - Danbury,CT Area Real Estate~203-417-0523
(William Pitt Sotheby's International Realty)
Something that has been used in the last few years is an appraisal gap. Typically, prior to the pandemic, is most buyers seeking a mortgage would include an appraisal contingency.  For example, if the contracted price between the buyer and seller is $500,000, and the buyers lender sends out the appraiser who values the property at $475,000. That would give the buyer the option to renegotiate the deal to the $475,000 or walk way from the transaction, as the buyer may feel they are overpaying for the property.However, it has been a home sellers market in almost all price ranges since 2020. Buyers sometimes have to get creative get a home if they are competing. One thing is the appraisal gap. This means for example, if the seller and buyer agree to a contract price of $550,000, and the buy...
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By Legal Info, Here For Your Legal Needs
Life can be unpredictable, and sometimes, unforeseen circumstances can throw us into financial turmoil. Imagine this: you've suffered a debilitating injury that not only affects your physical health but also puts a strain on your finances. Medical bills pile up, and you find yourself unable to work, jeopardizing your ability to keep up with mortgage payments. The threat of foreclosure looms over you, adding stress to an already challenging situation.How a Personal Injury Case Can HelpWhen facing the aftermath of an injury, it's essential to explore all available options to mitigate the financial impact. A personal injury case arises when someone suffers harm due to the negligence or wrongful actions of another party. In situations where the injury results in significant medical expenses...
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By Charles Stallions, 850-476-4494 - Pensacola, Pace or Gulf Breeze, Fl.
(Charles Stallions Real Estate Services )
Welcome to the MY Take, where 28-year veteran realtor Charles Stallions CBR, CRS of Pensacola, Pace, and Gulf Breeze, Florida, will bring you the rates and insight into the mortgage industry.Unlocking the Real Estate Potential of Pensacola, Pace, and Gulf Breeze, Florida: Insights from Charles StallionsAs a seasoned real estate expert with years of experience in the vibrant markets of Pensacola, Pace, and Gulf Breeze, Florida, Charles Stallions has witnessed firsthand the dynamic evolution of these communities. From the sandy shores of Pensacola Beach to the quaint neighborhoods of Pace and the waterfront estates of Gulf Breeze, each locale offers unique opportunities for buyers, sellers, and investors alike.Pensacola, dating back centuries, has emerged as a hub of cultural diversity an...
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By Joseph Lorenzo, Your Law And Order Realtor
(Frank Rubi Real Estate LLC)
In our series "Real Estate Terms You Should Know," today we are going to talk about Mortgage insurance. This is a crucial term to understand, especially for those entering the home-buying process.Mortgage insurance is a policy that protects lenders from losses due to the default of a mortgage loan. Typically, it is required when homebuyers make a down payment of less than 20% of the home's purchase price. Mortgage insurance can be either private (PMI) for conventional loans or government-backed, like those provided by the Federal Housing Administration (FHA).The purpose of this insurance is to reduce the risk for lenders, enabling them to offer loans to more borrowers. For buyers, it means being able to purchase a home without needing a 20% down payment. However, it does increase the ov...
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By Joseph Lorenzo, Your Law And Order Realtor
(Frank Rubi Real Estate LLC)
In our series "Real Estate Terms You Should Know," today we are going to talk about mortgage brokers. This role is critical in the real estate financing process, acting as a bridge between borrowers and lenders.A mortgage broker is a licensed professional who acts as an intermediary between individuals seeking a mortgage and potential lenders. Their primary job is to work on your behalf with several banks to find lenders with competitive interest rates that best fit your needs. Mortgage brokers have a well-developed stable of lenders they work with, which can make your life easier.Mortgage brokers are different from loan officers, who are employees of a lender and are paid a set salary for originating loans. Brokers, on the other hand, are paid a fee by the borrower or the lender when a...
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By Christopher Robson
(Educators Realty)
Introduction to Reverse MortgagesFull article on our webpage found here.The article introduces reverse mortgages as a financial solution for homeowners aged 62 or older who have substantial equity in their homes and seek financial flexibility without leaving their residences. In a reverse mortgage, instead of making monthly payments, eligible homeowners receive payments from the lender, converting a portion of their home equity into cash. The Home Equity Conversion Mortgage (HECM), insured by the Federal Housing Administration (FHA), is the most common type of reverse mortgage. Repayment is typically deferred until the homeowner sells the home, permanently moves out, or passes away, with the loan repaid through the sale of the home, ensuring that the borrower or their heirs won't owe mo...
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By Joseph Lorenzo, Your Law And Order Realtor
(Frank Rubi Real Estate LLC)
In our series "Real Estate Terms You Should Know," today we are going to talk about Mortgages. This term is a cornerstone in the world of real estate, playing a vital role in the homeownership journey.A mortgage is a type of loan specifically used to purchase real estate. In this arrangement, the buyer borrows money from a lender, usually a bank or a mortgage company, to buy a home or other property. The property itself serves as collateral for the loan. This means if the borrower fails to make the agreed-upon payments, the lender has the right to take possession of the property, a process known as foreclosure.There are various types of mortgages available, each with its own set of terms, conditions, and interest rates. These include fixed-rate mortgages, where the interest rate remains...
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By Kimo Stowell, REALTOR Associate® RS-76763 - Honolulu Hawai'i
(HI Pro Realty LLC RB-21531 )
               Latest rates, based on 20 percent down, $200,000 owner-occupant mortgages. The rates and terms may vary; check with lenders for details. Rates may have changed click here to verifyWednesday, January 31, 2024  Lender Term/Type Interest Rate % Points % *APR American Savings Bank808-593-1226NMLS#423168 15-YR Fixed 5.250 1.875 5.667 30-YR Fixed 5.875 2.125 6.156 5-YR ARM 5.625 1.750 7.042 Bank of Hawaii877-616-2636 15-YR Fixed 5.750 1.000 5.906 30-YR Fixed 5.875 2.000 6.063 5-YR ARM 5.875 1.000 7.099 Central Pacific Bank808-544-0500NMLS#416603 15-YR Fixed 5.250 2.125 5.715 30-YR Fixed 5.875 1.750 6.125 5-YR ARM 6.875 0.000 7.747 Finance Factors808-548-3300NMLS#449916 15-YR Fixed 5.125 2.000 5.656 30-YR Fixed 5.875 1.875 6.191 5-YR ARM 6.250 1.500 7.459 First Hawaiian Bank808-...
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By Bob Elliot, 30+ Yrs Industry Experience
(eXp Realty)
Rate locks play a crucial role in the mortgage application process, helping borrowers secure a favorable interest rate for their home loans. Here's an explanation of the importance of rate locks and when and how to secure the best rate:Interest Rate Protection: Mortgage rates are subject to market fluctuations and can change daily or even multiple times a day. Rate locks protect borrowers from potential rate increases during the loan processing period.Budgeting and Planning: Knowing the exact interest rate allows borrowers to budget more effectively and plan their finances with certainty. It prevents unexpected increases in monthly payments, helping borrowers manage their expenses.Peace of Mind: Homebuyers can experience peace of mind when they know their interest rate is secured. This ...
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By Bob Elliot, 30+ Yrs Industry Experience
(eXp Realty)
It was an uneventful week for the data reports, as the majority of the interest waits for the Federal Reserve’s rate decision heading into the following week. One of the most notable reports is for New Home Sales, which had managed to greatly exceed the projections for the end of the year moving into January. It is an early sign that there is a surge in response to the week-to-week rate cuts we have been observing over the last two weeks. The second largest data reports come from the PCE Index and preliminary projections for the Q1 GDP statistics. It is expected that the Federal Reserve’s decision to hold the current rate will hold true, but there is some optimism that a small rate cut may be a possibility.Pending Home SalesU.S. pending home sales shot up in December as falling mortgage...
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