Mortgage / Finance

Anybody that's hung around the ActiveRain “water cooler” for any length of time understands the value of the relationships built on the site. AR is so much more than a social networking site, however.


It's also the place to get up-to-the-minute information on topics that affect your clients. Ask yourself: what's the most confusing aspect of buying a home for the real estate consumer? The answer is most likely financing the purchase. Credit scores and how they affect the mortgage rate, types of loan products, points, fees – whew! -- there's a lot to know about mortgages.


To serve your clients effectively you need to know about this stuff and keep abreast of changes in the mortgage industry. Thankfully, ActiveRain is not only popular with real estate agents and brokers but with finance professionals as well.


Whether you're an agent trying to figure out what the Fed's latest move means to your clients or a mortgage pro who needs input on how to build relationships with real estate agents, ActiveRain is the place to tap into a wealth of knowledge.

Recent blogs on Mortgage / Finance
By Matt Brady, One of San Diego's Best Lenders
(Watermark Capital)
The economy has seen a continuous 3-week increase in mortgage applications. This is coming in off the heels of a few weeks of decreased interest rates. The market has placed their bets: The Fed is done with rate hikes. Also, the market believes that there is now an 18% chance of a rate cut in January with a total of 5-6 coming in 2024.Now, I doubt we will see a rate cut next month or in the few months that follow. Any rate cut must be incredibly strategically designed. The Fed must consider many factors, but ultimately I believe it will be the balancing act of not re-creating inflation and (sorry to say) manipulating markets for the current president's re-election campaign. We are entering a period where money and, more importantly, power are at stake. In the meantime, I expect the Fed ...
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By Jason E. Gordon, Sr Loan Officer, CMA, CMPS, CDLP, CDRE, RCSD, CDPE
(CMG Mortgage, San Diego, CA)
Homeowners Take Caution - Layoffs Are Back!Sadly, the 4th Quarter of 2023 is experiencing a rise in job layoffs across a vast array of industries (with forecasts of more to come in 2024).  Many of these employees experiencing termination are also homeowners who have mortgages.  What Can Homeowners Do With Their Mortgages?If you have not yet been laid off, but you anticipate the possibility of this happening to you, there are a couple of proactive measures that you can pursue. Consider a Cash-Out Refinance to consolidate your debts, lower your outflow of monthly payment obligations, and perhaps obtain some cash to utilize for reserves moving forward. An alternative to a Cash-Out Refinance (especially for those who locked in historically low rates during the pandemic) is to pursue a new 2...
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By Dick Betts, REALTOR® The Villages, Florida
(TOUCHSTONE REAL ESTATE)
Three days ago, I shared about interest rates and the possibility rates would be coming down.  On December 2nd, I wrote rates were 7.22% today working with a client I called Ronda my lender guy, she’s not a guy, anyway 6.875%.  Ronda told me rates are changing hourly and actually dropped a little more from when we spoke at 4:00 until 5:00.Just so you can understand the difference between a 7.22% mortgage and 6.875% mortgage.  You purchase a $400,000 home and put 20% down so financing $320,000 at 7.22% the amount of principle and Interest would be $2,176 a month at 6.875% it would be $2,102 a month.  You might think $74 isn’t that much let’s look closer, how about $888 a year or $26,640 over the 30-year mortgage.Thinking about buying in Florida and need a great lender?  Call Ronda Hennes...
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By Doug Jones, Mortgage Broker - NMLS 286668
(Mortgage Magic)
If you count the Friday after Thanksgiving as a business day, mortgage rates had fallen for 6 straight days as of yesterday afternoon.  Moreover, they'd reached the lowest levels in 3 months and had put an impressive amount of distance between themselves and the highs seen just over a month ago.Ironically, yesterday's analysis expressed some measure of bewilderment at just how much better rates were versus the previous day.  Now today, we see that all good things--especially those that look a little TOO good--come to an end.This isn't necessarily a bad thing.  When rate rallies continue unabated, the certainty and swiftness of the eventual rebound only increase.  By undergoing a moderate rebound in a measured, logical way, rates have made it easier for themselves to remain in the curren...
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By Jason E. Gordon, Sr Loan Officer, CMA, CMPS, CDLP, CDRE, RCSD, CDPE
(CMG Mortgage, San Diego, CA)
Fannie Mae & Freddie Mac have recently announced their new Conforming and High Balance Conforming Loan Limits for 2024.  If you are a Realtor, Financial Planner and/or Attorney, do you know how to articulate this great news to your Clients?  Here are a few talking points: In most counties across the country, there are 3 categories of loan types (based on the LOAN AMOUNT) Conforming High Balance Conforming  Non-Conforming (Jumbo) The loan amounts have increased on each category as follows: Conforming was $726,200, increasing to $766,550 in 2024 High Balance Conforming limits vary significantly depending on county (see below for a few examples) Non-Conforming (Jumbo) limits vary depending on county as well (as shown below) Examples of New High Balance Conforming Loan Limits by County San ...
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By Endre Barath, Jr., Realtor - Los Angeles Home Sales 310.486.1002
(Berkshire Hathaway HomeServices California Properties)
Wordless Wednesdays: Beaver Moon yesterday was a full moon called Beaver Moon. it is all about the beavers getting ready to lock up and load up for the end of the year.Well, I thought let me take a picture of it. Keep in mind my phone is not like a fantastic camera. Let me know what you thought of it? Wishing you a safe and healthy life and I look forward to your comments. If you are looking for a knowledgeable, focused and goal-oriented Realtor in the Beverly Hills area who will help you achieve your Real Estate goals, please reach out to me directly! If you are looking for a pet friendly Beverly Hills Realtor who can handle and sell the most difficult properties that no one else could, please reach out to me directly!! If you are considering buying or selling a home, a luxury home, lu...
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By Matt Brady, One of San Diego's Best Lenders
(Watermark Capital)
The new maximum loan limits were announced by the Federal Housing Finance Agency for conforming loans. Loan limits will vary depending on the county, but for most of the United States, the 2024 maximum loan limit for one-unit properties will be $766,550, an increase from $726,200 (2023 limit). Conforming Loan Limits refers to the maximum loan amounts that Fannie Mae and Freddie Mac will allow for financing one, two, three, and four-unit properties. Contact us to learn more about how this impacts your buying power.  Effective January 1, 2024, the maximum conforming loan limits for San Diego County finally topped $1M and will be $1,006,250.This will also affect FHA loans and will increase the limits allowed for Reverse mortgages which will be a great benefit for retirees. 
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By Femme Capital Partners, Residential & Commercial Mortgage Broker
(Femme Capital Partners)
Sara Blakely, a name synonymous with innovation, resilience, and female empowerment, has left an indelible mark on the world of business. As the founder of Spanx, she not only revolutionized the fashion industry but also became a beacon of inspiration for aspiring entrepreneurs and women seeking to break barriers. Join us as we delve into the life and achievements of the woman who turned a simple idea into a global empire.Section 1: The Journey BeginsEarly Life:Sara Blakely's journey began in Clearwater, Florida. Explore her upbringing, early experiences, and the seeds of ambition that would later blossom into a groundbreaking venture.The "Aha" Moment:Discover the story behind the creation of Spanx, from the initial inspiration to the lightbulb moment that sparked a revolution in women'...
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By Joseph Lorenzo, Your Law And Order Realtor
(Frank Rubi Real Estate LLC)
In our continuing series on the ABC's of Real Estate, today, we're diving into a topic that often piques the interest of homebuyers: "Zero Down Loans." The allure of purchasing a home without a down payment is undeniable, but it's essential to understand both the advantages and drawbacks before embarking on this path to homeownership.Zero Down Loans: Exploring the Pros and ConsPros:Accessibility to Homeownership: Zero down loans open the door to homeownership for those who may not have saved a substantial down payment.Immediate Investment: Rather than waiting years to save for a down payment, you can start building equity in your home right away.Cash Flow Preservation: By not using your savings for a down payment, you can keep cash available for emergencies or other investments.Cons:Hig...
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By Garrett Puckett, VA Loan Lender
(Security America Mortgage)
Understanding the complexities of securing a mortgage, particularly a VA loan, is essential before embarking on your home search. Here's a breakdown of the crucial factors, documentation, and step-by-step process, including insights into VA loans, VA one-time close construction loans, and VA loan specifics in Texas.Key Considerations for LendersLenders meticulously assess various elements to gauge your eligibility for a mortgage, including income stability, credit score, debt-to-income ratio, assets, and the specifics of the property you intend to purchase. For VA loans in Texas, these factors hold particular significance.Income Stability & Employment RecordsA consistent income stream is paramount when applying for a VA loan in Texas. Lenders scrutinize employment history and overall mo...
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By Garrett Puckett, VA Loan Lender
(Security America Mortgage)
Interested in making the most of a VA Loan Calculator? Understanding the nuances of VA loans, especially in Texas, along with aspects like VA Construction Loans and BAH Calculator, can be pivotal when it comes to navigating the housing market. Let's break down how to leverage these tools and the key elements to consider.VA Loan Calculator Overview: A VA Loan Calculator is a powerful digital tool designed specifically for those considering or using VA loans. It assists in estimating monthly payments and understanding the terms associated with VA loans, considering factors such as:Monthly mortgage payments: Breaking down principal, interest, property tax, homeowners insurance, HOA fees, and PMI.      Loan duration: Estimating the length of the mortgage in years.      Fixed or adjustable i...
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By Matt Brady, One of San Diego's Best Lenders
(Watermark Capital)
Markets are betting that the Fed is done with rate hikes. Before we get ahead of ourselves, they made the same sort of bet earlier in the year when a few banks went under. However, I  believe that the markets may be right this time for a few reasons. 1. The economy does not have to be "cured" in order for rates to come back down. The Fed told us what they wanted to see: lower inflation and a weaker labor market. We are seeing both. After the recent Fed meeting where they announced another pause in rate hikes, the markets rejoiced and bet that hikes were done. Then, in an attempt to subdue market excitement, Fed Chairman Powell spoke and said the Fed is ready to hike rates again if the data suggests further hikes are needed. In the following week, inflation data came in lower than expect...
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By Linda Peltz, It's The Sold That Counts
(eXp Realty)
Navigating the financial and real estate terrain requires thorough research and planning. Start by understanding your financial goals, budget, and credit score. Consult with professionals, such as financial advisors and real estate agents, who can provide guidance based on your specific situation. Educate yourself on market trends, mortgage options, and investment strategies. Don't rush into decisions - take your time to make informed choices that align with your long-term objectives.Step into the world of Trials and Triumphs, a compelling journey through the experiences and insights of real estate & financing maven, Deric Blanton & Linda Peltz. In this captivating discussion, Linda Peltz as realtor Clovis CA and Deric Blanton shares their wealth of knowledge and unconventional approach...
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By MaryKay Shumway, Door County Wisconsin's Real Estate Expert
(The Kellstrom Ray Agency, Inc. (Est. 1948))
Taking a listing through a progressing divorce can be a very difficult process because of the emotions involved with the Seller. This blog does an excellent job of explaining a good portion of the financing process as you sell in what may be a diffcult situation. Remember, an appraisal is different that an Comparative Market Analysis--and it may come in higher or lower (in Door County, they often come in lower).  If you need to discuss the sale of your Door County home, please contact me today.  Understanding HVCC's Impact On The Appraisal Process If Divorcing Parties order their own appraisal, why does a Mortgage Lender need to order a separate appraisal?  If there are multiple appraisals, which one is used for the Divorce Equity Buyout loan process?  The answers stem from unintended c...
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By Endre Barath, Jr., Realtor - Los Angeles Home Sales 310.486.1002
(Berkshire Hathaway HomeServices California Properties)
Wordless Wednesdays: Interest rates make a huge difference, what a buyer's power is when it comes to purchasing a home. Now with that said please look at the photo. If you have monthly $4000.00 disposable income for purchasing a home, look at what a huge difference interest rates make.When the interest rates were at 3.25% you could have bought a home that was listed for $1,148,750.00 now if you have the same $4000.00 and the interest rate is at 8% you can buy a home for $681,250.00 a huge difference. Clearly it affects the affordability of a buyer.Now if you want to buy a more expensive home, please reach out to me and let's discuss how we can achieve that with the same $4000.00 I can help you negotiate a rate buy down with the seller. Wishing you a safe and healthy life and I look forw...
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By Jason E. Gordon, Sr Loan Officer, CMA, CMPS, CDLP, CDRE, RCSD, CDPE
(CMG Mortgage, San Diego, CA)
Understanding HVCC's Impact On The Appraisal ProcessIf Divorcing Parties order their own appraisal, why does a Mortgage Lender need to order a separate appraisal?  If there are multiple appraisals, which one is used for the Divorce Equity Buyout loan process?  The answers stem from unintended consequences of the federally mandated Home Valuation Code of Conduct (HVCC).Prior to HVCC, there were several report incidents of alleged collusion between Lenders and Appraisers, to include: Positive Reinforcement – Example: “If you can ‘bring in’ the value of the property high enough for the deal to work, I (the Lender) will give you (the Appraiser)…” (this could have been the promise of more referrals, monetary incentives, etc.) Negative Reinforcement – Example: “If you do NOT ‘bring in’ the va...
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By JoAnn Moore, Home Loans in Delaware
(The Mortgage Market of Delaware)
Reverse Mortgage – The Home Pension PlanIn Europe, the term for reverse mortgages is the home pension plan. It really is a way to plan and handle your finances in retirement. There is no limit on how you can use the funds from a reverse mortgage. One great strategy to boost your income would be to use the funds from a reverse mortgage to purchase an investment property. Another way to structure the funds is to set up a line of credit to have disbursements every month to enhance your lifestyle.And, another way would be to take a lump sum at closing and make renovations to your home or add onto your home. You will have the funds ready to pay the contractor and not have to deal with draws on a construction loan. Your home gets a huge boost in value and continues to appreciate.A reverse mor...
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By Matt Brady, One of San Diego's Best Lenders
(Watermark Capital)
We have an extremely busy week ahead of us. We hear from a lot of Fed members and receive two key inflation reports: the CPI and PPI.Right now, the markets are expecting a CPI reading of 0.1% (down from 0.4% from the previous month) with a core (excluding food and energy) reading of 0.3%, unchanged from last month. They are expecting a year-over-year (YoY) change of 3.3%. These numbers will be released tomorrow.This will be important inflation data as we head into the final Fed meeting of 2023 set to take place on December 13th. So far, inflation has been easing with some hiccup months, due to higher energy costs and a strong consumer, and the labor markets have shown recent signs of softening. These are all things that the Fed wants to see and why the market is betting on the Fed being...
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By Matt Brady, One of San Diego's Best Lenders
(Watermark Capital)
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($726,200 or less) decreased last week to 7.61% from 7.86% Applications to refinance a home loan increased 2% for the week and were 7% lower than the same week one year ago. Mortgage rates saw the biggest one-week drop in over a year last week, causing the first increase in mortgage demand in a month. Total mortgage application volume rose 2.5% last week, compared with the previous week, according to the Mortgage Bankers Association’s seasonally adjusted index. The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($726,200 or less) decreased to 7.61% from 7.86%, with points falling to 0.69 from 0.73 (including the origination fee) for loans with...
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By Dawn Castell, Freelance home stager
(Freelancer)
Have you ever pondered the idea that your home could serve a greater purpose than just being a place to live? What if it could play a pivotal role in enhancing your financial future? In this article, we'll explore how you can harness your home as a powerful investment tool, presented in a straightforward manner, devoid of complex jargon or abstract concepts.Utilizing Your Home for Real Estate InvestmentsLet's commence by demystifying home equity – think of it as a savings account that grows in tandem with your home's value appreciation and your mortgage payments. The more you chip away at your mortgage and the more your home's value escalates, the greater your home equity becomes.Now, let's delve into the exciting terrain of leveraging your home equity for real estate investments. Consi...
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