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 Joseph Lorenzo, Your Law And Order Realtor
(Frank Rubi Real Estate LLC)
Today in our blog series "The ABC's of Real Estate," we delve into a topic that has garnered significant attention over the years - subprime mortgages. As a potential buyer or seller, understanding the dynamics of subprime mortgages can help you make informed decisions while navigating the complex real estate market.What Are Subprime Mortgages?Subprime mortgages are home loans extended to borrowers with lower credit scores, making them ineligible for conventional prime-rate loans. These loans typically carry higher interest rates due to the increased risk associated with borrowers who have a history of credit challenges.Understanding the RisksHigher Interest Rates: Subprime mortgages often come with higher interest rates compared to prime-rate loans. This can result in significantly hig...
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By Joseph Lorenzo, Your Law And Order Realtor
(Frank Rubi Real Estate LLC)
Today in our blog series "The ABC's of Real Estate," we're delving into a financial tool that holds particular importance for senior homeowners - the reverse mortgage. If you're a senior looking to tap into your home's equity, or if you're supporting a loved one in this stage of life, understanding reverse mortgages is crucial.Demystifying Reverse MortgagesA reverse mortgage is a financial product designed exclusively for homeowners aged 62 and older. It allows you to convert a portion of your home's equity into tax-free cash while still retaining ownership of the property. The loan is repaid when the homeowner moves out of the home, sells it, or passes away.Key Aspects of Reverse MortgagesNo Monthly Mortgage Payments: One of the most attractive features of a reverse mortgage is that yo...
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By Rosie Crow, Rosie the Realtor: Client focused, results driven
(Serving Sugar Land, Richmond, Rosenberg, Missouri City)
Inflation is one of the significant factors that impact mortgage rates. Inflation usually leads to higher mortgage rates since it decreases the value of the U.S. dollar. When inflation goes up, mortgage rates also tend to increase. This means getting a mortgage loan to purchase a home can become more expensive as higher interest rates translate into higher monthly mortgage payments. But now, let's shift gears to brighter prospects! Shall we?If you are planning to buy a home later this year, you're probably wondering about the interest rate dance. Historic trends and market analysis suggest mortgage interest rates are poised to take a favorable turn in the upcoming months. This could mean more affordability and flexibility for those looking to buy a home. Here are three expert projection...
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By Manfred Lewis Leslie Horne & Associates, Realtor Spartanburg and Greenville SC
(Leslie Horne &Associates )
Don't let terminology or abbreviations scare you away from owning a house. I can help explain it all. #thehelpfulagent #home #houseexpert #house #listreports #homeowner #realestate #realestateagent #realtor #icanhelp #investment #smartmoney #finances #mortgage #happyhomeowners #happyhome
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By Bob Elliot, 20+ Yrs Industry Experience
(eXp Realty)
Making major life decisions often involves a delicate balancing act. Among the most significant choices individuals face are buying a new car and purchasing a new home. Both ventures represent milestones in one's life, bringing excitement and anticipation. However, there is a complex interplay between these two financial endeavors that can significantly impact a person's ability to achieve their dream of owning a new home.  Here are some factors to consider:   Debt-to-income ratio: When you apply for a home loan, your lender will consider your debt-to-income ratio (DTI) to determine whether you qualify for a mortgage. Your DTI is the amount of debt you have compared to your income. High DTI ratios are a red flag for lenders as it indicates a greater risk of defaulting on the mortgage. T...
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By Bob Elliot, 20+ Yrs Industry Experience
(eXp Realty)
Last week’s scheduled economic reporting included readings on construction spending, public and private sector payroll growth, and the national unemployment rate. Weekly readings on mortgage rates and new jobless claims were also released.Construction Spending Slips in JuneU.S. construction spending slipped by 0.60 percent to 0.50 percent growth in June; analysts expected a month-to-month reading of  0.70 percent growth in construction spending. Year-over-year construction spending increased by 3.50 percent of which single-family residential construction accounted for 2.10 May’s reading for construction spending was revised from  0.90 percent growth to 1.10 percent growth from May to June.Private residential construction rose by 0.30 percent in June. Spending on public residential const...
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By Joseph Lorenzo, Your Law And Order Realtor
(Frank Rubi Real Estate LLC)
Today in our blog series "The ABC's of Real Estate," we're diving into an important aspect of real estate investing - the Qualified Intermediary (QI) in a 1031 exchange. Whether you're a buyer or seller, understanding the role of a QI can greatly impact the success of your 1031 exchange transaction.The Basics of a 1031 ExchangeA 1031 exchange, also known as a like-kind exchange, is a powerful tool used by real estate investors to defer capital gains tax when selling one property and purchasing another of equal or greater value. This allows investors to reinvest the proceeds from the sale into a new property, facilitating portfolio growth and wealth accumulation.Enter the Qualified Intermediary (QI)Who Is a Qualified Intermediary: A Qualified Intermediary is a third party, often a compan...
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By Charles Stallions, 850-476-4494 - Pensacola, Pace or Gulf Breeze, Fl.
(Charles Stallions Real Estate Services )
  If you’re following mortgage rates because you know they impact your borrowing costs, you may be wondering what the future holds for them. Unfortunately, there’s no easy way to answer that question because mortgage rates are notoriously hard to forecast.   Click Here to Continue Reading & Share Mortgage 101 it all starts here we do the research for you whether a VA, FHA, Conventional, or non-traditional. We can help take the challenges out of the equation.  How to get a Mortgage and FREE Credit Report    Thinking of buying use our Broker Buying System to do your searches, find out the actual value of each home before you make an offer, property disclosures at your fingertips, home inspection reports, and any work that has or may have been done to the home before seller putting a home...
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By Shayne Stone, "Your Rock Solid Choice Realtor"
(HomeSmart)
Your Needs Matter More Than Todays Mortgage RatesIf you're thinking about selling your house right now, chances are its because something in your life has changed. And, while things like mortgage rates are a key part of your decision on what you'll buy next, its important to not lose sight of the reason you want to make a change in the first place.Its true mortgage rates have climbed from the record lows we saw in recent years, and that has an impact on affordability. With rates where they are right now, some homeowners are deciding they'll wait to sell because they dont want to move and have a higher mortgage rate on their next home. As Danielle Hale, Chief Economist at Realtor.com, explains:. . . homeowners who locked in a 30-year fixed rate in the 2-3% range don't necessarily want to...
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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, August 2, 2023  Lender Term/Type Interest Rate % Points % *APR Aloha Pacific Federal Credit Union808-531-3711NMLS#377314 15-YR Fixed 5.750 2.000 6.248 30-YR Fixed 6.375 1.875 6.672 5-YR ARM 5.500 0.875 5.684 American Savings Bank808-593-1226NMLS#423168 15-YR Fixed 5.875 2.125 6.347 30-YR Fixed 6.500 2.125 6.796 5-YR ARM 6.500 2.000 7.570 Bank of Hawaii877-616-2636 15-YR Fixed 6.375 1.250 6.574 30-YR Fixed 6.875 1.000 6.974 5-YR ARM 6.000 1.875 7.241 Central Pacific Bank808-544-0500NMLS#416603 15-YR Fixed 6.000 2.250 6.504 30-YR Fixed 6.500 1.875 6.777 5-YR ARM 7.375 0.000 7.860 Financ...
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By Bob Elliot, 20+ Yrs Industry Experience
(eXp Realty)
The amount of equity you can borrow from your house depends on several factors, including the current market value of your home, the amount you owe on your mortgage, and your credit score.In general, lenders typically allow you to borrow up to 80% of your home's equity. For example, if your home is currently valued at $400,000 and you owe $200,000 on your mortgage, you may be able to borrow up to $160,000 (80% of the $200,000 in equity you have in your home).However, it's important to note that borrowing against your home's equity comes with risks. If you are unable to make payments on the loan, you could potentially lose your home through foreclosure. It's important to carefully consider the risks and benefits of borrowing against your home's equity before proceeding. It's also recomme...
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By Bob Elliot, 20+ Yrs Industry Experience
(eXp Realty)
When homeowners need to tap into the equity they've built in their homes, two popular options are Home Equity Loans (HEL) and Home Equity Lines of Credit (HELOC). Both types of loans allow homeowners to access funds for various purposes, such as home improvements, debt consolidation, or unexpected expenses. However, it's essential to understand the differences between these two mortgage products to make an informed decision that aligns with your specific needs and financial goals. Here are some important differences between the two.Home Equity LoanA home equity loan is a one-time loan that provides you with a lump sum of money that you repay over a fixed term, usually between five and 30 years. The interest rate on a home equity loan is fixed, meaning it remains the same throughout the ...
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By Nick Vandekar, 610-203-4543, Selling the Main Line & Chester County
(Long & Foster Real Estate Inc 610-225-7400)
If you are buying a home, you need good credit, and many buyers have an idea of their credit score because of the offers from Credit Karma or their credit cards to give them their score. But many do not understand why when they apply for a loan  their credit score is lower.I asked Rich Filipone of Prosperity Home Mortgage, LLC, NMLS:137129 this and some other questions related to soft and hard pulls of credit in this video.If you are looking for a home or thinking of selling a home in Chester County or on the Main Line contact Nick Vandekar Selling the Main Line and Chester County of Long & Foster Real Estate, Inc, office 610-225-7400 cell or text 610-203-4543, Nick@VandekarTeam.com.
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By Thomas J. Nelson, REALTOR ® e-Pro CRS RCS-D Vets, CEO of Vision Drive Realty - Coastal San Diego
(Big Block Realty 858.232.8722)
I am not a tax advisor, I am not offering any tax advice. I am always going to insist you direct all tax questions to your CPA or Attorney. I'm merely sharing this information as a homeowner, to help other homeowners understand what can be a "surprise bill" in the first year of ownership.Often, as a REALTOR, I get calls from clients 30 days to 6 months after close of escrow asking "what is this extra tax bill?" even though they were told about it no less than 3 times during escrow...evidenced by signed disclosures.California's Supplemental Property Taxes have been a factor in real estate since 1983. CA Homeowners are subject to them when undertaking new construction or purchasing a home. Basically this tax is a lien on your property, typically placed their by the County in the first yea...
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By Linda Peltz, It's The Sold That Counts
(eXp Realty)
When it comes to homeownership, the allure of rural living often captivates many, promising tranquility, open spaces, and a sense of connection with nature. However, living in rural areas can present unique challenges, especially when it comes to securing adequate home insurance coverage.  Recently Linda Peltz as homeowner agents held a discussion with Ziang Her (Ziang) from PBM Insurance. Meet Ziang, the dynamic agency owner of PBM Insurance with an impressive background in the insurance industry. With over five years of experience, Ziang is a seasoned expert in navigating the complex landscape of home insurance in California. Her journey began as a captive agent with State Farm, providing her with invaluable insights into the challenges faced by homeowners in securing coverage. Now an...
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By Chris Goulart, California Hard Money Loans & Solutions
(All California Lending)
Private hard money construction loans are a unique type of financing specifically meant to be a bridge loan.  These loans are not long term.  Rather they fill a need to take a property from ground up or partially built to completion.  During this period of time, a property is in a unique state.  This unique state requires a specialized financing tool – which is a construction loan.When a property has nothing built on it, the value of the property is essentially land value.  Many construction projects do not have enough equity in the land value to finance the full construction of a build.  For land loans typically the maximum leverage point for financing is 50%.  Once the construction is completed, however, the value is higher than the land value.  Additionally, financing is available at...
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By Joe Jackson, Clintonville and Central Ohio Real Estate Expert
(Keller Williams Capital Partners Realty)
We unveil a game-changing opportunity to reduce your mortgage rate by a whopping 2%. Learn the insider secrets and strategies to secure a lower interest rate and potentially save thousands over the life of your loan. Don't miss this chance to take control of your financial future and make the most of your homeownership journey. Have a super fantastic week!Joe Jackson, Realtor-KWCP Prices are up, but you can keep costs down with a 2-1 buydown—and we can get you a lender who can help.  A 2-1 buydown means that during the first year of your mortgage, the interest rate you'll pay will be 2% below market. In the second year, it will be 1% lower. After that point, the interest rate returns to the original higher rate. Continue To Read And Share  Mortgage 101 it all starts here we do the resea...
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By Bion Grady, Douglas County Real Estate Specialist
(Keller Williams West Atlanta)
We may not think about it often, but as the median age of the country’s population creeps steadily higher, it has many effects on the daily lives of all of us—regardless of age. It would be shocking if it weren’t so, given the size of the shift: the median age of the U.S. population in 1920 (Boomers’ parents’ era) was 25.3; today, the Census Bureau says it’s 38.9!Since Americans’ life expectancies have risen spectacularly over the same period—from 53.2 to over 78, it’s important to recognize how great an effect it has on our housing choices and how we plan to pay for them, for most, Dallas home loans are a great part of that discussion.Earlier generations rightly felt that “they were in the last inning” of their lives much earlier, so they would have approached home loans from a radical...
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By Bob Elliot, 20+ Yrs Industry Experience
(eXp Realty)
Last week’s economic reporting included readings on the Fed’s interest rate decision, S&P Case-Shiller’s Home Price Indices, sales of new homes, and pending home sales. Weekly readings on mortgage rates and jobless claims were also released. The Federal Reserve raised its target interest rate range to 5.25 to 5.50 percent; this announcement signaled that rates for home loans and unsecured credit would also rise.S&P Case-Shiller Reports Slower Home Price Growth  in MayAverage  U.S. home prices fell in May according to the S&P Case-Shiller 20-City Home Price Index. Home prices were -1.70 percent lower as compared to an expected dip of -1.90 percent and April’s reading of -1.70 percent. The top three cities reporting the highest pace of year-over-year home price growth were Chicago, Illino...
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By Dale Taylor, Realtor = Chicago Illinois Homes Townhomes Condos
(Re/Max 10 New Lenox Illinois http://dtaylor.remax.com)
Thanks Jon Hamilton Vice President of The Federal Savings Bank for providing this very helpful information.  Jon can be direct at 312-471-6993 or 708-218-8480 - jhamilton@thefederalsavingsbank.comFirst-time home buyers shouldn’t let themselves be daunted by their loan estimate– a document that estimates the terms, monthly payments, and closing costs associated with the mortgage for which you are applying. If you purchased a home with any lender before 2015, you may have received a so-called “good faith estimate,” which the standardized loan estimate form replaces. Click here to view a sample loan estimate from the Consumer Financial Protection Bureau.   WHAT KIND OF INFORMATION IS ON THE LOAN ESTIMATE?  The first page of your loan estimate (or “LE”) ought to clearly spell out the mortga...
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