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 Chris Goulart, California Hard Money Loans & Solutions
(All California Lending)
Private hard money lending in California is a popular funding source for real estate investors and business owners. These loans, which are typically provided by private individuals or companies, are secured by real estate and offer a more flexible alternative to traditional bank loans.One of the main advantages of private hard money lending in California is its flexibility. Hard money lenders in California are often more willing to work with borrowers who have less than perfect credit or who are in unique financial situations. This can make it easier for borrowers to obtain the funding they need, even if they don't qualify for a traditional bank loan. Additionally, private hard money lenders in California are also more likely to consider the value of the collateral (the real estate) and...
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By Jerry Thomas-Construction Loans, Construction Loans in MI, OH, PA, VA, GA and FL.
(Cranbrook Loans)
I’ve been lucky enough to be a Mortgage Loan Officer for 30 years now. While I’m happy to have any business that comes my way, I’ve specialized in construction lending almost from the beginning of my career. As we came out of the housing crisis in 2010, the options for construction lending had shrunk dramatically. No more zero down for everyone, no more stated income, minimum credit scores had risen and maximum debt to income ratios were lower. All of a sudden, government construction loans, FHA and VA, became very important options to have. From time to time I am asked by Veterans which construction program is best for them, Conventional or VA. There are a lot of factors to consider before answering this question, credit score/history, debt to income, needed loan amount and if the Vete...
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By Manfred Lewis Leslie Horne & Associates, Realtor Spartanburg and Greenville SC
(Leslie Horne &Associates )
Down payments are not the only expense you should be planning for; you should also have money earmarked for inspections, credit reports, insurance, taxes, and closing costs – which can range from 3%-6% of the home's purchase cost. Long story short, many other things need to be planned for, but you don't need to stress; I can help you be prepared and answer any questions you have. Just send me a message! #thehelpfulagent #home #houseexpert #house #listreports #househunting #finances #smartmoney #investment #themoreyouknow #icanhelp #realestate #realestateagent #realtor #happyhomeowners
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By Jane & Jeff Daley, PhD, Scottsdale Real Estate Arizona
(Luxury Valley Homes Scottsdale)
How Changing Mortgage Rates Can Affect YouThe 30-year fixed mortgage rate has been bouncing between 6% and 7% this year. If you’ve been on the fence about whether to buy a home or not, it’s helpful to know exactly how a 1%, or even a 0.5%, mortgage rate shift affects your purchasing power.The chart below helps show the general relationship between mortgage rates and a typical monthly mortgage payment:Even a 0.5% change can have a big impact on your monthly payment. And since rates have been moving between 6% and 7% for a while now, you can see how it impacts your purchasing power as rates go down.What This Means for YouYou may be tempted to put your homebuying plans on hold in hopes that rates will fall. But that can be risky. No one knows for sure where rates will go from here, and try...
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By Romana King, Real estate and personal finance expert
(Zolo)
According to the Bureau of Labor Statistics (BLS), the average retirement age for Americans varies depending on several factors such as gender, education level, and occupation. However, as of 2021, the average retirement age for all workers in the United States is 62 years old.It's worth noting that many Americans continue to work past 62, either because they choose to or need to. In fact, the BLS projects that by 2028, nearly a quarter of the workforce will be over the age of 55. Additionally, some Americans choose to retire earlier or later than the average age based on their personal financial circumstances and retirement goals.For Americans looking to top up their retirement savings, one option is to consider how to use their home as part of their retirement strategy. While I go int...
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By Bob Elliot, 20+ Yrs Industry Experience
(eXp Realty)
Last week’s economic reporting included readings on home prices, inflation, and pending home sales. Weekly readings on mortgage rates and jobless claims were also published.S&P Case-Shiller Home Price Indices Report Slower Home Price Growth in JanuaryHome price growth cooled in January according to S&P Case-Shiller’s 20-City Home Price Index. Home prices increased by 2.50 percent year-over-year in January but rose at a slower pace than December’s reading of 4.60 percent. The FHFA Home Price Index also showed slower growth in January with year-over-year home price growth of  5.30 percent as compared to December’s home price growth rate of 6.60 percent.The top three cities for home price growth in the 20-City Home Price Index were Miami, Florida, Tampa, Florida, and Atlanta, Georgia. In c...
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By Bill Salvatore - East Valley, Realtor - 602-999-0952 / em: golfArizona@cox.net
(Arizona Elite Properties )
UNDERSTANDING HOW A REVERSE MORTGAGE WORKS “Don't let retirement be a  time of financial worry – explore the benefits of a reverse mortgage today.”     As you approach retirement age, one of the biggest concerns is how to manage your finances  while maintaining your quality of life. A reverse mortgage may be one option worth considering.     In Canada, reverse mortgages are becoming increasingly popular as a way to unlock the equity  in your home and supplement your income during retirement.  So, what is a reverse mortgage? It is a loan that allows homeowners aged 55 and older to  access the equity in their homes without having to sell their property.  With a reverse mortgage,  you can convert a portion of your home's equity into cash that you can use to pay off debts,  cover living ex...
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By Fred Carver Personal Real Estate Corporation, Accredited Real Estate Consultant
(RE/MAX Camosun Victoria BC Real Estate)
UNDERSTANDING HOW A REVERSE MORTGAGE WORKS“Don't let retirement be a  time of financial worry – explore the benefits of a reverse mortgage today.”  As you approach retirement age, one of the biggest concerns is how to manage your finances  while maintaining your quality of life. A reverse mortgage may be one option worth considering.   In Canada, reverse mortgages are becoming increasingly popular as a way to unlock the equity  in your home and supplement your income during retirement. So, what is a reverse mortgage? It is a loan that allows homeowners aged 55 and older to  access the equity in their homes without having to sell their property. With a reverse mortgage,  you can convert a portion of your home's equity into cash that you can use to pay off debts,  cover living expenses, o...
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By Matt Brady, One of San Diego's Best Lenders
(Watermark Capital)
So CA rolled out a new First Time Homebuyer Program (FTHB) yesterday.It is a shared equity program. They will give you 20% down for your conventional loan as long as you use their 30yr mortgage for the loan.At some point in the future when you refinance or sell your home you pay back the 20% PLUS 20% of any appreciation in the home. You can never pay back more than 2.5 times the amount of the original loan.So if you buy a home for $500K they give you $100K and you use their $400K loan at 6.375% for 1.5 points.In the future, you want to refinance because rates have improved and the home is worth $700K.You must repay the $100K plus $40K of the $200K appreciation. You would have to wait until it was worth enough to stay at 80% LTV.The question is is it worth $40,000 of future funds to acce...
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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, April 5, 2023  Lender Term/Type Interest Rate % Points % *APR Aloha Pacific Federal Credit Union808-531-3711NMLS#377314 15-YR Fixed 4.625 1.875 5.080 30-YR Fixed 5.250 2.000 5.535 5-YR ARM 4.375 0.625 4.521 American Savings Bank808-593-1226NMLS#423168 15-YR Fixed 4.625 1.875 5.028 30-YR Fixed 5.375 2.000 5.633 5-YR ARM 4.500 1.500 5.912 Bank of Hawaii877-616-2636 15-YR Fixed 4.875 2.250 5.221 30-YR Fixed 5.500 2.250 5.707 5-YR ARM 4.375 2.500 5.774 Central Pacific Bank808-544-0500NMLS#416603 15-YR Fixed 4.750 1.875 5.164 30-YR Fixed 5.375 1.875 5.626 5-YR ARM 5.750 0.000 6.917 Finance...
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By Bob Elliot, 20+ Yrs Industry Experience
(eXp Realty)
If you're about to seek approval for a mortgage, you'll want to ensure you have a solid credit score and clean financial records to boost your likelihood of being approved. There are certain characteristics that lenders want to see in a mortgage applicant before they agree to give a loan, and you want to prove that you're a responsible borrower. But certain behaviors can easily tank your application and crush your home ownership dreams.Before you seek approval, make sure your finances are in order. Avoid these three mortgage-killing habits while your lender evaluates your loan and you'll quickly find yourself holding the keys to your new home.Using Up Most Of Your Available CreditIt can be tempting to start buying furniture when your mortgage is about to be approved, but you're better o...
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By Bob Elliot, 20+ Yrs Industry Experience
(eXp Realty)
Last week’s financial and economic reporting included readings on sales of new and previously-owned homes, along with weekly data on mortgage rates and jobless claims.  Single-Family Home Sales Rise in FebruaryYear-over-year sales of previously owned homes rose 14.5 percent to a seasonally-adjusted pace of 4.58 million sales. Analysts expected 4.20 million sales of pre-owned homes as compared to January’s year-over-year reading of 4.0 million sales. February’s increased sales halted 12 months of falling sales of previously-owned homes. February’s reading marked the highest pace of sales since July 2020, when sales of pre-owned homes rose by 22.40 percent.The National Association of Realtors® said that February’s reading represented the largest increase in existing home sales since the i...
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By Lise Howe, Assoc. Broker in DC, MD, VA and attorney in DC
(Keller Williams Capital Properties)
My daughter is under contract for a new condo in the Boston area.  She is learning a lot about getting a mortgage now and I am going through that process with her!  It is very personal now.  I am learning all over again that shopping for a mortgage can be overwhelming. Even if you’ve owned a few homes and have had a few home loans, chances are there are some mortgage options you don’t know about.Here are some points to remember: A 20 percent down payment isn’t a must. The long-held view that at least a 20 percent down payment is needed to buy a home is outdated.A loan approved by the Federal Housing Administration, or FHA, can have a minimum down payment of 3.5 percent. For a $300,000 home, instead of having to come up with $60,000 (20 percent) down, a 3.5 percent down payment requires ...
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By Charles Stallions, 850-476-4494 - Pensacola, Pace or Gulf Breeze, Fl.
(Charles Stallions Real Estate Services )
At 6.14%, Weekly Mortgage Rates Hit Sept. Lows It’s down from last week’s 6.33%. Freddie Mac’s chief economist says it provides a “much-needed boost” for the housing market, but inventory is a concern. continued reading 5 Ways to Build a Credit Score in 2023 By Lauren Schwahn By taking charge of debt, first-time buyers could start 2023 unable to qualify for a mortgage and end the year celebrating the holidays in a new home. continued reading    FHA Loans Now Cost $117 Less Per Month By Kerry Smith FHA lowered its mortgage-insurance premium for borrowers by 30 basis points. The $117 monthly savings is based on a $467.7K home with 3.5% down. continued reading Mortgage Buydowns Return to Entice Buyers By Bailey Schulz Buyers offered a 2% mortgage rate discount their first year and 1% the ...
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By Alberto Pacheco, Experience and Trust
(Home Smart Evergreen Realty)
Are you thinking about buying a home in the near future? If so, it’s time to get your finances in order. Here are the top questions to ask your mortgage lender.If you’re preparing to purchase but don’t have a mortgage broker or lender yet, don’t panic! Reach out for a referral to one of our trusted partners.📲 818 481 9211📧 albertopachecorealtor@gmail.com
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By Melissa Thompson, I'm a real estate agent helping buyers and sellers
(Thompson Real Estate)
Money can be a difficult concept to understand. It’s not something we learn in school, but it has a massive impact on our lives. We need to understand how economics and personal finances intersect so that we can make better decisions when it comes to our money and our future.For financial stability and security, it's important to see how the economy affects your own finances. It allows us to plan for the future and make smart choices when it comes to budgeting and saving. Knowing how changes in the economy will affect our own finances helps us get ready for any problems that might come up."Connecting the Dots: Understanding the Intersection of Economic and Personal Finance" is a great book for people who want to learn more about their finances and make sure they are financially stable. ...
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By Chris Dunham, The Real Estate Guy™
(Brokers Hub Realty)
FHA financing, all the information you need to know and then some.Being in this industry for over 20 years, 24 actually as I type this blog, I have used FHA Financing for probably 65-70% of all the home buyers I have worked with. On average, I close 40 plus transactions a year, and the bulk of those have been with first time home buyers. The FHA loan is the most popular government-backed home loan in the country. These low down payment loans are made by qualified lenders and guaranteed by the Federal Housing Administration (FHA).FHA loans require just a 3.5% down payment for borrowers with a 580 credit score or higher. For homebuyers with less-than-perfect credit, FHA loans offer additional significant benefits. The government backing means average FHA interest rates are typically lowe...
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By Will Hamm, "Where There's a Will, There's a Way!"
(Hamm Homes)
Spring is the time for a fresh start. If that means buying a new home, your credit score is one of the most important numbers to watch. A good credit score only gives you a better chance of getting approved for the home you want. So before you start your home search, here are a few reminders you can do to give your credit score a boost. Repair Any Credit Bumps Before buying a home, you must know your credit score and fix any credit issues. Don't Be Late This is one of the easiest things you can do to help your credit boost. Make all of your payments on time. Avoid any late payments on your bills. Don't Add To Your Credit You shouldn't take out new credit if you're getting ready to buy a home. Instead, hold off on big purchases until after you close on your new home. Use Credit Tools Th...
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By Charles Stallions, 850-476-4494 - Pensacola, Pace or Gulf Breeze, Fl.
(Charles Stallions Real Estate Services )
  Buyers offered a 2% mortgage rate discount their first year and 1% the second often hope they can refinance then and/or raises at work will make up the difference.   NEW YORK – Anna Raymond was ready to switch from renting to owning a home last spring. But after five failed offers, she and her husband decided to take a step back from house hunting. Then, in December, their real estate agent presented an offer too good to pass. A home in Longmont, Colo., was up for sale, and the seller was willing to offer a 2-1 interest rate buydown. The concession would lower the Raymonds’ 5.75% contract interest rate by 2% in the first year and 1% in the second year, so they’ll pay just 3.75% interest in the first year and 4.75% in the second year before returning to 5.75% in the third. Raymond sai...
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By Joseph Lorenzo, Your Law And Order Realtor
(Frank Rubi Real Estate LLC)
I am not a loan officer, nor do I play one on TV, lol.  But as a realtor, I am often asked about the differing types of loans available to borrowers.    I work with several great lenders and when asked about loans by a client or potential client, I obtain some basic information and then refer them to the lenders I know and work with. (the stay in you lane rule).  However, as a professional realtor, I believe I should have a basic knowledge of the types of loans available.   Hence, this post.  Many of you know this information already.  If you don’t, here is some information that will be helpful  Hopefully, this post will increase your knowledge and help you to better serve your clients.     As we know, navigating the world of real estate loans can be a daunting task, especially for firs...
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