Admin

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 )
In today's real estate market, characterized by high interest rates and limited home inventory, buyers face unique challenges and must consider various strategies to secure home ownership. As your trusted real estate broker, Charles Stallions is here to guide you through this complex landscape.Exploring Financial OptionsAdjustable-Rate Mortgages (ARMs): When fixed mortgage rates are high, ARMs can offer lower initial rates. These mortgages have interest rates that adjust periodically, usually tied to an index. Buyers can benefit from lower initial payments, potentially refinancing to a fixed-rate loan when rates drop.Buydowns: A buydown allows buyers to reduce their interest rate temporarily by prepaying a portion of the interest upfront. This can make initial mortgage payments more aff...
Comments 1
By Chris Dunham, The Real Estate Guy™
(Brokers Hub Realty)
Are you ready to start your journey toward homeownership but worried about your credit score? Chris Dunham, The Real Estate Guy™, is here to help you take the first steps to build a solid credit history with a Target Red Card!Key Steps to Building Credit: Get a Target Red Card: Applying for a Target Red Card is a great way to start building your credit. It’s easy to get approved, and using it responsibly can boost your credit score. Use the Card Minimally: Make small purchases each month. Think groceries, household essentials, or that cute throw pillow you’ve been eyeing. Pay Off the Balance: Always pay off your balance in full each month. This shows lenders that you’re responsible with credit and helps avoid interest charges. Build a Solid Tradeline: Consistently using and paying off y...
Comments 2
By Charles Stallions, 850-476-4494 - Pensacola, Pace or Gulf Breeze, Fl.
(Charles Stallions Real Estate Services )
Pre-approval means nothing to a seller, like being on a first date, not even knowing if there will be a second, whereas preapproval is like being engaged and showing one's commitment to the relationship. Hello, Folks! Charles Stallions, your trusted real estate broker, is ready to demystify the often-confusing world of mortgage terminology. Today, we’re diving into the difference between being pre-qualified and pre-approved for a mortgage—two terms that might seem similar but have distinct implications for your home-buying journey.Pre-qualification: The Initial StepPre-qualification is an informal process where you give your lender an overview of your financial picture—income, assets, debts, and credit score. Based on this information, the lender gives you a ballpark estimate of the loa...
Comments 3
By Laura Sellers, www.AuburnOpelikaALRealEstate.com
(Berkshire Hathaway HomeServices Preferred Real Estate, Inc.; www.AuburnOpelikaALRealEstate.com)
Boost Your Credit Score: Your Key to Mortgage Pre-Approval Ready to unlock the door to your dream home? Your credit score is the key! Improving your credit score is a crucial step towards securing a mortgage loan pre-approval. Here’s how you can give your credit score a healthy boost: Check Your Credit Report: Start by obtaining a free copy of your credit report from major bureaus. Look for any errors and dispute them promptly. Pay Bills on Time: Your payment history significantly impacts your credit score. Set up automatic payments or reminders to ensure you never miss a due date. Reduce Debt: Lower your credit card balances and avoid taking on new debt. Aim to keep your credit utilization ratio below 30%. Avoid Opening New Accounts: Each new credit inquiry can lower your score slightl...
Comments 2
By Charles Stallions, 850-476-4494 - Pensacola, Pace or Gulf Breeze, Fl.
(Charles Stallions Real Estate Services )
Your monthly take-home pay from the military ($2,200) and monthly living expenses ($3,000) leave you with a deficit of $800 per month that you must cover through a combination of your savings and Social Security. That comes out to $9,600 per year. The 4% rule says you can withdraw 4% of a balanced retirement portfolio yearly with little risk of running out of money. Depending on how your investments perform, you may end up with more money than you started with. If we apply the 4% rule to the $700,000 in your retirement accounts, you can safely withdraw $28,000 in your first year of retirement. The rule also requires you to adjust your subsequent withdrawals for inflation each year.Where to Withdraw Money From You cannot take qualified withdrawals from your retirement account until you a...
Comments 2
By Chris Dunham, The Real Estate Guy™
(Brokers Hub Realty)
In the time I have been selling homes in Arizona, it seems to never fail when I represent a buyer (or a seller for that matter) that comes to me with a Big Box Bank approval letter.In my experience, those approval letters hold no merit, in fact, most just have a conversation with the potential buyer and have yet to pull credit, check taxes and verify income and debts.  What is really frustrating, I'll reach out to the "lender" on either side of the deal (yes, I always call the loan officer/lender when I representing either party). The reason why? If I am representing the seller, I need to make sure the buyers lender has checked credit, verified income and assets, assured the buyer has filed taxes for the past 2 years, collected the necessary documentation regarding reserves (cash on han...
Comments 2
By Robert Rauf
(CMG Home Loans)
The USDA Rural Housing program is an excellent way to purchase a home when you have limited funds.  While we do not typically think of NJ as being a rural area there still are significant parts of the state that are eligible for financing.  Below is the map of NJ showing the eligible areas.  The lighter colors are eligible while the darker colors indicate the ineligible areas.Since my office is located in Ocean County I wanted to zoom in on the map a bit so you can see that huge portions of Ocean County are in eligible areas:In addition to geographical restrictions the USDA also has income limits. A small family in Ocean and Monmouth counties  the Household income limit is $140,600/yr  for family of 5 or more that number is increased. The benefits of a USDA loan are not just the zero do...
Comments 6
By Joe Jackson, Clintonville and Central Ohio Real Estate Expert
(Keller Williams Capital Partners Realty)
This blog does a great job outlining the traits of an outstanding mortgage lender! Key qualities like transparency, responsiveness, and expertise can significantly impact the borrowing experience. Thanks for sharing these insights to help borrowers choose the right lender for their needs! Have a super fantastic week!Joe Jackson, Realtor-KWCP What Traits Make an Outstanding Mortgage Lender? In the ever-evolving real estate market, finding the right mortgage lender can make or break your home buying experience. But what sets the best apart from the rest? Let’s dive into the key traits that make a mortgage lender outstanding and why you should choose them for your next big investment. Key Traits of an Outstanding Mortgage Lender: Exceptional Communication Skills:Clear and timely communicat...
Comments 1
By Bob Elliot, 30+ Yrs Industry Experience
(eXp Realty)
The week after the inflation data reports was expected to be relatively quiet, with the most significant event being a meeting with Federal Reserve Chairman Jerome Powell. He remained tight-lipped about when rate cuts would happen, but given his demeanor, he did not deny that rate cuts were on the way — simply that he would not indicate when they would arrive. This has only confirmed to lending partners and the broader market that they were right to feel optimistic that rate cuts are possible before the end of the year.There were a few cyclical reports released, with the Economic Indicators report taking the lead and the Federal Reserve’s Beige Book being among the highlights.Economic IndicatorsThe leading index for the economy fell again in June for the fourth month in a row, reflectin...
Comments 1
By Laura Sellers, www.AuburnOpelikaALRealEstate.com
(Berkshire Hathaway HomeServices Preferred Real Estate, Inc.; www.AuburnOpelikaALRealEstate.com)
What Traits Make an Outstanding Mortgage Lender?In the ever-evolving real estate market, finding the right mortgage lender can make or break your home buying experience. But what sets the best apart from the rest? Let’s dive into the key traits that make a mortgage lender outstanding and why you should choose them for your next big investment.Key Traits of an Outstanding Mortgage Lender: Exceptional Communication Skills:Clear and timely communication is crucial. An outstanding lender keeps you informed every step of the way, answering your questions and addressing concerns promptly. The lenders I use respond usually no later than an hour and are available on weekends and on holidays. Transparency:A top-notch lender provides full disclosure on all costs, terms, and conditions. They ensur...
Comments 4
By Joe Metzler, Sr Loan Officer
(Cambria Mortgage)
Investing in real estate can be a highly profitable business, until you go to sell, then the tax man feels he can take a big chunk of your profits. Luckily for investors, Congress put rules in place over 100-years ago designed to defer your capital gain taxes, potentially indefinitely.A 1031 Exchange, very simply allows someone to exchange one property for another 'liked-kind' properties, and not pay any capital gain taxes on the sale. Furthermore, liked-kind is a little looser than the name implies.  For example, if you sell a duplex, you do not need to buy another duplex, but it does need to be real estate for real estate. You can even sale one property, and divide the gains to buy two or more properties, which is something I have done in the past personally.1031 Exchange TimelinesThe...
Comments 3
By Joe Metzler, Sr Loan Officer
(Cambria Mortgage)
FHA announces 203k rehab loan improvementsThe Federal Housing Administration (FHA) has announced updates and improvements to it’s 203(k) rehab mortgage which are intended to reduce barriers to using the program.The FHA 203(k) rehab loan allows people to both buy a home, AND get the money needed to repair the home all in one loan.Enhancing the 203(k) Rehabilitation Mortgage Insurance Program (203(k) program) is an integral part of FHA’s goals to increase the supply of affordable housing, expand affordable financing options for homes in need of repair, and stabilize neighborhoods by reducing the blight of vacant and abandoned properties.FHA has now enhanced its 203(k) program guidelines to: Increase the Limited 203(k) total rehabilitation cost from a maximum of $35,000 to a maximum of $75...
Comments 3
By Bob Elliot, 30+ Yrs Industry Experience
(eXp Realty)
With lofty expectations, the CPI delivered a lower-than-expected inflation increase, leading to a positive uptake across many lending partners and markets. However, the PPI was on the opposite end of that, with a higher-than-expected inflation rate increase, muting the positive response from the CPI data release.The outlook for a rate cut this year has changed, making the potential for it highly likely. Even Jerome Powell, who usually has a more hawkish response regarding rate cuts, is now leaving some room for this possibility. With the outlooks in favor of a rate cut, we’re seeing the impact across many markets as the potential change for rates is reduced long term.Consumer Price IndexThe cost of consumer goods and services fell in June for the first time since the pandemic in 2020, a...
Comments 0
By Charles Stallions, 850-476-4494 - Pensacola, Pace or Gulf Breeze, Fl.
(Charles Stallions Real Estate Services )
A 3-2-1 buydown is a mortgage financing technique that temporarily reduces a borrower's interest rate. This is achieved by paying an upfront fee or getting a credit from the seller or builder. The interest rate is reduced for the first three years of the loan before reverting to the original rate for the remainder of the term.Here's a breakdown of how a 3-2-1 buydown works, along with an example:Explanation: Year 1: The interest rate is reduced by 3 percentage points. Year 2: The interest rate is reduced by 2 percentage points. Year 3: The interest rate is reduced by 1 percentage point. Year 4 onward: The interest rate returns to the original rate agreed upon when the loan was taken out. Example:Let's say a borrower is taking out a 30-year fixed-rate mortgage of $300,000 at an interest ...
Comments 3
By Charles Stallions, 850-476-4494 - Pensacola, Pace or Gulf Breeze, Fl.
(Charles Stallions Real Estate Services )
Discover the benefits of an FHA Assumption. With new mortgage rates approaching 8%, many buyers have decided to wait for rates to come down.  While there may be some easing in the fourth quarter of 2023 and 2024, assuming an existing FHA mortgage with a lower rate made in the last three or four years might be a much better alternative. Since December 1, 1986, FHA has had the right to approve the purchaser of an existing FHA loan.  Before that, anyone could assume an existing FHA loan regardless of creditworthiness or other qualifications.  Existing FHA mortgages are assumable at the current interest rate for owner-occupied buyers.  The benefit is that the rate could be much lower than a new mortgage.  The borrower must qualify for the loan under current FHA underwriting guidelines, but ...
Comments 2
By Pat Starnes-Front Gate Realty, 601-991-2900 Office; 601-278-4513 Cell
(Front Gate Real Estate)
If you follow real estate articles, podcasts, etc., you may have heard that FHA, VA, and USDA loans are assumable. If you are a real estate agent, I'm sure you are aware of it, but not everyone has fully embraced the idea or comprehends the dynamics of this opportunity.Recently, I successfully acquired a buyer by marketing a lovely home with an assumable mortgage, but first I had to explain the benefits to the seller, then to other Realtors, and lastly to potential home buyers. Once the seller understood the process, we had the home under contract within a week or so, with multiple offers.With this particular home, it was only a couple of years old, but we were in competition with a lot of new construction.  We had a good number of showings, but came up shy of any reasonable offers. Tim...
Comments 11
By Charles Stallions, 850-476-4494 - Pensacola, Pace or Gulf Breeze, Fl.
(Charles Stallions Real Estate Services )
Getting approved for a loan is one of the most crucial steps in the home-buying process. With Charles Stallions as your trusted real estate broker, you’ll have the guidance and expertise to navigate this complex journey smoothly. Charles’s extensive experience in the real estate market, particularly in Escambia County, Florida, ensures you’ll be well-prepared to secure the financing necessary to purchase your dream home.Understanding Your Financial SituationBefore you even start looking at homes, it’s essential to have a clear understanding of your financial situation. Charles Stallions will help you assess your financial readiness by thoroughly reviewing your income, debts, credit score, and savings. This evaluation will give you a realistic picture of what you can afford and the type ...
Comments 1
Back to Top