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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, San Diego's Equity Advisor
(Watermark Capital)
As we know, the Fed cut rates for the first time in over 4 years. It was larger than I had expected at 50bps. Since then, however, the market has bounced higher. I mentioned this would happen in a "buy the rumor, sell the news" type of event. The market aggressively priced in a rate cut, when the Fed actually did it, they readjusted their bets and pushed rates higher. Take a look below (cut rates on highlighted portion): Nothing sprints without a break. We have been in a downtrend since Spring. I believe we have a little higher to go before testing some resistance levels and then bouncing back down. The Fed has cut rates for the first time in years. This is the start of a regime change. We went from raising rates to pausing to now cutting. Once the market works its wiggles out, we will ...
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By Brian Madigan, LL.B., Broker
(RE/MAX West Realty Inc., Brokerage (Toronto))
Commercial Bond Yields CMB 5 Year - 3.01% Est. CANHOU 12/15/29 [-0.03%]     10 Year - 3.46% CANHOU 12/15/34 [-0.04%]     Floating Rate insured cost of funds 4.89% [-]     Prime Rate 6.45% [-]     GoC 2 Year - 2.94% CAN 08/01/26 [-0.03%]     3 Year - 2.77% CAN 09/01/27 [-0.04%]     5 Year - 2.76% CAN 09/01/29 [-0.04%]     10 Year - 2.97% CAN 06/01/34 [-0.04%]     GOC Bonds are for reference purposes only * denotes interpolated rate  
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By Manfred Lewis Leslie Horne & Associates, Realtor Spartanburg and Greenville SC
(Leslie Horne &Associates )
Often, when thinking about homeownership costs, buyers think of their main expense – their mortgage, and fail to go beyond that. It's important not to forget things like property taxes, HOA fees, insurance, etc. If you have questions about what costs to expect and prepare for I can help! Just send me a message. #thehelpfulagent #home #houseexpert #house #listreports #themoreyouknow #icanhelp #homeowner #a092524 #househunting #happyhome #finances #smartmoney #realestate #investment #realestateagent #realtor #happyhomeowners
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By Robert Rauf
(CMG Home Loans)
You read that correctly.  Mortgage rates are higher now than before the Federal Reserve lowered interest rates last week.  First you have to understand how the market moves, especially the long end of the yield curve.  We have had HUGE improvements in rates since the high in fall of 2023 and all summer rates continued to improve in anticipation of the Fed Move on the 18th.Here's a pretty chart of how a 30yr Mortgage back security has been trading:That is the "price" of the 30yr Mortgage backed security, and it is an inverse relationship: Price up = Yield down. So we want to see the price climb, and you can see a nice run up in price (all that green is prices up). The arrow at the top of the chart is the day BEFORE the Fed moved, the red means the market sold off a little ahead of the fe...
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By Linda Peltz, It's The Sold That Counts
(eXp Realty)
Reverse mortgages can be a game-changer for seniors looking to tap into their home’s equity while still maintaining ownership. Yet, despite its growing popularity, this financial tool is often misunderstood. Recently Dennis Keithly and Linda Peltz explore the core features of a reverse mortgage, how it works, and why it may be a beneficial option for those seeking financial flexibility. Lets tune in to video belowWhat Is a Reverse Mortgage?A reverse mortgage is an FHA-insured loan designed for homeowners aged 62 or older. Unlike traditional loans, where borrowers make monthly payments to pay off their mortgage, a reverse mortgage allows seniors to convert part of their home equity into cash. The key advantage is that the homeowner is not required to make any monthly mortgage payments. T...
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By Endre Barath, Jr., Realtor - Los Angeles Home Sales 310.486.1002
(Berkshire Hathaway HomeServices California Properties)
This week’s Federal Reserve did a .50 basis point cut and sets the tone for lower mortgage rates!!  Now that has been the headline since the Fed Chairman announced the cut. If you listened to Federal Reserve Chairman Jerome Powell speech, you might have notice that he used the term “recalibrate” nine times during his question-and-answer session after the Federal Reserve cut rates.   What is the takeaway from this?  First and foremost, this interest rate cut had been telegraphed for quite some time and was already factored into the market. Hence it is a big to-do about nothing. Great for the Media and the Headlines.  Just to be clear, mortgage rates roughly track the direction of the 10-year treasury note, which is outside the direct control of the Fed. In fact, mortgage rates worsened a...
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By John Meussner, #MortgageMadeEasy Fair Oaks, CA 484-680-4852
(Mortgages in AZ, CA, CO, DE, FL, GA, IN, MD, MN, MT, NC, NJ, NV, OK, OR, PA, SC, SD, TN, TX, UT, VA, WI)
Every time.  EVERY TIME.  Every time the Fed cuts rates, mortgage ads fly from everyone's social media pages - "NOW IS THE TIME TO REFINANCE!!".  The phones start ringing.  "HELLO, I SAW THE FED CUT RATES, WHERE ARE RATES NOW!?". There is perhaps no more confusing moment for the general mortgage marketplace than when the Fed cuts rates.  Naive (and inexperienced) loan officers offer up their oft-incorrect take, or their personal-gain position of "it means now's the time to refi!".  Realtors help spread the (mis)information, and the few, the proud, the Mar...I mean, the mortgage & real estate veterans, carry on knowing that what the Fed rate cut means isn't what most people believe it means. I'd like to clear up the misconceptions, and provide a factual take on what the Fed rate cut mean...
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By Jeff Masich-Scottsdale AZ Associate Broker,MBA,GRI, Arizona Homes and Land Group/ Buy or Sell
(HomeSmart Real Estate)
This may be a good time to buy a home, between September 29 and October 5 historically. Why? Read on...Per Julie Taylor, Realtor.com Sep 12, 2024, "Mortgage rates tumbled from 6.35% to 6.20% for a 30-year fixed home loan for the week ending Sept. 12, according to Freddie Mac.“Mortgage rates have fallen more than half a percent over the last six weeks and are at their lowest level since February 2023,” Sam Khater, Freddie Mac’s chief economist, said in a statement. “Rates continue to soften due to incoming economic data that is more sedate.”For the past two weeks, rates lingered at their lowest point in more than a year before this week’s further downturn. Yet despite the rate decline, the U.S. housing market remains sluggish—but perhaps not for long.“We anticipate the marginal buyer wil...
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By Peter Tamura, BANNOCHIE TEAM
(Coldwell Banker Select)
The idea of Yin & Yang is that opposing forces create balance/harmony. Pain and pleasure, night and day, sickness and health, good and evil, the moon waxes and wanes and so forth... The Chinese sage Lao Tse advocates the "middle way" avoiding extremes of one way or another.The two concepts I would like to explore as it pertains to real estate investing are cashflow and equity.There is a saying, "Cashflow is king, you can't eat Equity." It definitely starts with cashflow, calculating how much downpayment is required to have adequate cashflow for expenses. An unexpected expense that can't be covered by existing cashflow can cause a business to liquidate assets. Good examples are occasionally REITS and mutual funds that have to liquidate funds to cover redemptions. Although equity is a for...
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By Dora Griffin, NMLS 6380
(D A Griffin Financial.LLC)
LET'S GET REAL ABOUT RENTING Renting has it's advantages, namely maintenance for one.   Rent costs have escalated recently due to a shortage of homes for purchase or rent.  Rent costs is one of the two biggest contributors to inflation currently.  Some economists expected to see rents begin to go down by now, but so far it is not the case, maybe next month.Getting real about renting, if one is paying $1300 a month in rent, that equates to $15,600 a year. In five years that is $78,000.  That's a lot of money used to pay off the owner of the property's mortgage.  What if instead those funds went toward a mortgage, reducing the balance while equity increases. When a rent lease is up the renter walks out as he/she walked in. When a homeowner sells especially after five years they walk out w...
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By Matt Brady, San Diego's Equity Advisor
(Watermark Capital)
We have a big week ahead of us. We receive the last inflation reports before the Fed's interest rate decision next week. The market is betting on a 100% probability of a rate cut and the odds of a 50bp cut have been inching up slowly. With the Fed pivot about to take place, it makes sense for them to cut rates by 25bps. They still need to make sure inflation is under control. If we begin to hear the "R" word (recession) in the mainstream media more frequently, then a more aggressive cut may occur. Powell pretty much has stated that a cut will be coming and that has been priced into the markets. To determine how rates will move from here, we will want to see lower-than-expected inflation numbers on the CPI and PPI. Here is how rates have been moving recently. Please keep in mind this dat...
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By Melvin List, Purchase Specialist
(https://www.flbestrate.com/)
maximize your savings – contact us today to get started!   Are you aiming to boost your savings and take advantage of the lowest refinancing rates on the market? You've come to the right place! Our expert mortgage loan officers are ready to assist you through the refinancing process, helping you make choices that align perfectly with your financial objectives. Refinancing can be a strategic move, especially when interest rates are at a historic low. By seizing this opportunity, you could potentially lower your monthly payments, shorten your loan term, or even access your home’s equity for other needs. However, it's crucial to understand the details of refinancing to ensure it benefits you. One significant advantage of refinancing is the opportunity to secure a lower interest rate than y...
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By Jill Petrowsky, Licensed in CT, MA, NC, LA and FL 860-808-7484
(Security National Mortgage Company)
Clients who feel their dreams are crushed and Realtors who are frustrated and looking for a Hail Mary.These are the calls I have been getting over the last few months.I wish this wasn't the case in our industry but unfortunately it is. A hopeful borrower goes to get preapproved for a house and the Loan Officer who they speak to issues a preapproval letter to the Realtor for X amount of dollars without efficiently preapproving them and not reviewing any documentation or having key conversations with the borrower to fully understand the scenario.The Realtor spends hours and days showing the client homes until they finally find what they believe is "The One".Contracts are written up and sent to all parties. Everyone waits for the deal to be submitted only to find out that suddenly it appea...
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By Jim Lee, REALTOR, CRS, Buying or Selling? Ann & Jim are the local experts
(RE/MAX Shoreline)
September Housing Market Update: What the Federal Funds Rate Cut Means for Portsmouth Homeowners and SellersAs we move into September, all eyes are on the Federal Reserve (the Fed), with widespread expectations that they’ll cut the Federal Funds Rate at their upcoming meeting. This is largely driven by recent signs of cooling inflation and a slowdown in the job market. “They’re ready to cut, just as long as we don’t get an inflation surprise between now and September, which we won’t.” Mark Zandi, Chief Economist at Moody’s Analytics But what does this mean for homeowners and potential sellers in Portsmouth, New Hampshire? How will this affect your plans to sell your home with real estate professionals like Ann Cummings and Jim Lee?Why a Federal Funds Rate Cut Matters for HomeownersThe F...
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By Sally Dollar
(Royal LePage Niagara Real Estate)
Today, the Bank of Canada announced a third consecutive cut to interest rates, bringing the overnight lending rate down 25 points to 4.25%. 📉With the fall housing market now underway, a third cut may encourage more Canadians off of the sidelines to take advantage of lower borrowing costs. 🏡 Want to know more about today's interest rate decision?...https://blog.royallepage.ca/bank-of-canada-update-september-2024/#royallepage #realestate #realtors #agents #canada #news #industry #brokers #homeowner #buying #selling #bankofcanada #interestrates #lendingrate #sallydollarrealtor #shesellsniagara  
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By Melvin List, Purchase Specialist
(https://www.flbestrate.com/)
When diving into real estate investment, securing the right financing is essential. Whether you're new to the field or an experienced investor, choosing the right loan can greatly affect your investment success. One loan that’s become increasingly popular among real estate investors is the Debt-Service Coverage Ratio (DSCR) loan.The DSCR loan stands out because it bases financing on the income potential of the property rather than the borrower's personal income. This loan assesses a property's ability to generate enough cash flow to cover its mortgage payments, making it a favorable option for those looking to grow their real estate holdings.To maximize your investment potential with a DSCR loan, it’s important to understand how it works and how to leverage it effectively. Let’s break d...
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By Sally Dollar
(Royal LePage Niagara Real Estate)
🏡 From mortgages to down payments, there's a lot of financial information to cover when buying your first home. If you're getting on the property ladder for the first time, 🔗 tap the link to read up on these five financial factors to consider on your path to home ownership. 🤔...#sallydollarrealtor #shesellsniagara #stcatharinesrealestate#royallepage #realestate #realtors #agents #canada #news #industry #brokers #homeowner #buying #selling #mortgage #downpayment #homeownershiphttps://blog.royallepage.ca/5-financial-factors-first-time-buyers-should-consider-on-their-path-to-home-ownership/
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By Melvin List, Purchase Specialist
(https://www.flbestrate.com/)
HOMETOWN HEROES (HTH) IMPORTANT ANNOUNCEMENT!          PLEASE READThe Hometown Heroes (HTH) Program launched on July 1, 2024, has now exhausted funding. Thank you for making HTH a successful program and, more importantly, for assisting so many first-time buyers realize their goal of home ownership. WHEN WILL FALLOUT FUNDS BE AVAILABLE?All loans originated in HTH 2024 must be purchased by Lakeview no later than November 15, 2024. Any loans not purchased in by November 15,2024, will be cancelled. No exceptions. We will allow one extension on funds already reserved. The loan must be Underwriter certified with 60 days to avoid auto-cancellation. If you cannot meet this timeline, cancel the loan so others may use those funds.Funds from any cancelled loans will be offered to Lenders over the ...
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By Melvin List, Purchase Specialist
(https://www.flbestrate.com/)
We Offer Fannie's HomeReady First Program to help make homeownership more assesible for First-Time Home Buyers in underserved areas. $5000 Grant $500 Home Warranty Credit $500 Appraisal Credit ZERO Income Resrictions Give us a call to see if your client qualifes for this awesome program! https://www.flbestrate.com/  
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By Melvin List, Purchase Specialist
(https://www.flbestrate.com/)
For many individuals and families, homeownership is a significant achievement and a crucial investment. If you own a home in Tampa with a VA loan, you might have heard about refinancing benefits through a VA Interest Rate Reduction Refinance Loan (IRRL). This blog explores the details of simplifying the refinancing process and maximizing savings with VA IRRL.Understanding VA IRRLKnown as the VA Interest Rate Reduction Refinance Loan, VA IRRL is a powerful tool allowing homeowners with existing VA loans to refinance their mortgages for lower interest rates and better terms. One major advantage of VA IRRL is its design to streamline the refinancing process, making it more cost-effective and easier for qualified borrowers.Savings Through Lower Interest RatesRefinancing your Tampa home with...
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