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 Brian Madigan, LL.B., Broker
(RE/MAX West Realty Inc., Brokerage (Toronto))
Commercial Bond Yields CMB 5 Year - 3.28%*CANHOU 06/15/28 [+0.04%]   ‌ 10 Year - 3.34%*CANHOU 06/15/33 [+0.02%]         * denotes interpolated rate GoC 5 Year - 2.96% CAN 03/01/28 [+0.03%]   ‌ 10 Year - 2.84% CAN 12/01/32 [+0.01%]   ‌ 15 Year - 3.02%* Est. 12/01/38 [-0.01%]   ‌ 20 Year - 3.05%* Est. 12/01/43 [-0.01%] GOC Bonds are for reference purposes only Floating rate insured cost of funds 5.04% [-]                   Prime Rate 6.70% [-]    
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By Dee Toohey, Broker, ABR, AHWD, CIPS, FMS, ePro
(Innovative Realty Solutions Group)
This is good information on the rescinding of the DTI LLPA rules that were to go into effect. They are going to come up with common sense changes moving forward. The FHFA announced today that the DTI (Debt To Income) based LLPA (Loan Level Price Adjustment), which had been temporarily postponed for 3 months, has been rescinded indefinitely.  This is great news and avoids a deluge of complications.  The FHFA’s Director, Sandra Thomas, cited overwhelming feedback from the mortgage industry and industry participants for the reversal.  Logic prevailed in this case. This from Housing Wire Did you hear that sound? That’s the entire mortgage industry shouting, “hip, hip hooray!” The Federal Housing Finance Agency (FHFA) on Wednesday announced that it would rescind a controversial loan-level pr...
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By Matt Brady, One of San Diego's Best Lenders
(Watermark Capital)
The FHFA announced today that the DTI (Debt To Income) based LLPA (Loan Level Price Adjustment), which had been temporarily postponed for 3 months, has been rescinded indefinitely.  This is great news and avoids a deluge of complications.  The FHFA’s Director, Sandra Thomas, cited overwhelming feedback from the mortgage industry and industry participants for the reversal.  Logic prevailed in this case.This from Housing WireDid you hear that sound? That’s the entire mortgage industry shouting, “hip, hip hooray!” The Federal Housing Finance Agency (FHFA) on Wednesday announced that it would rescind a controversial loan-level pricing adjustment (LLPA) for conventional borrowers with debt-to-income (DTI) levels at or above 40%.The FHFA, which regulates Fannie Mae and Freddie Mac, had previo...
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By George Souto, Your Connecticut Mortgage Expert
(George Souto NMLS #65149 FHA, CHFA, VA Mortgages)
Hot off the press FHFA has rescinded their new UNFAIR Loan Level Price Adjustments (LLPA's).  This is proof that when we stick together and make our voice heard, even the most deaf administration has to take notice.This was a very unfair increase in the LLPA's by the present administration which penalized responsible borrowers with excellent credit scores, at the expense of irresponsible borrowers with bad credit scores.  This was really a smoke and mirror attempt by the present administration, because all it was going to do was exhort more money from responsible borrowers, and do noting for irresponsible borrowers who would not be able to qualify for financing.This rescinding of the LLPA's was not because the present administration all of the sudden realized this was unfair, but becaus...
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By Joseph Lorenzo, Your Law And Order Realtor
(Frank Rubi Real Estate LLC)
 In our blog series on the ABC's Of Real Estate, today, we will talk about Financing. Navigating the world of mortgage financing can be daunting, with various options available to fit a wide range of needs. Whether you're a first-time homebuyer or an experienced seller looking to purchase a new property, selecting the right mortgage is essential for achieving your real estate objectives. In this blog post, we'll explore different mortgage options, their advantages, and how to choose the best one for your unique circumstances, providing valuable insights for both buyers and sellers.Understanding Mortgage BasicsA mortgage is a loan secured by real estate, allowing you to finance the purchase of a home over a set period, typically 15 to 30 years. Mortgages consist of principal, interest, t...
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By Manfred Lewis Leslie Horne & Associates, Realtor Spartanburg and Greenville SC
(Leslie Horne &Associates )
While these two terms sound interchangeable, they are very different. Understanding the differences and when to complete each step is essential but can also be confusing. But don't fret; I can help you every step of the way. I'm only a message away! #thehelpfulagent #home #houseexpert #house #listreports #homeowner #happyhomeowners #househunting #realestate #realtor #realestateagent #themoreyouknow #realtorspartanburgsc #realtornearme #realtorboilingspringssc
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By Matt Brady, One of San Diego's Best Lenders
(Watermark Capital)
We are coming off an important week and heading into another one. Last week, the Fed raised rates by 25bps, as expected. More importantly, the markets digested Fed Chairman Powell’s words as this may be the last rate hike before they think about pausing. Powell also tried to calm markets by suggesting the banking sector is strong, however, the market thought otherwise as we saw regional bank stocks tank.I know I sound like a broken record here but I do not think the trouble is over for banks. I think we will see something big break, markets panic, and the Fed step in as the hero. They will inevitably be forced to cut rates to stimulate the economy and reinstate trust in the financial system.This week, we get CPI numbers. Since the summer of 2022, we have been on a consistent trend lower...
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By Joe Jackson, Clintonville and Central Ohio Real Estate Expert
(Keller Williams Capital Partners Realty)
This is an excellent post with great information. Thanks for sharing it.Have a super fantastic week!Joe Jackson, Realtor-KWCP One of the most important financial decisions you will ever make during your lifetime involves securing appropriate life insurance coverage. Life insurance policies provide financial protection to your loved ones after your passing, helping to ensure that they are well provided for during an incredibly difficult period. This article will delve into the various aspects of life insurance to help you make an informed decision. Understanding the Basics of Life Insurance At its core, life insurance is a contract between you and an insurance company. In exchange for regular premium payments, the insurer agrees to pay out a certain amount of money, known as the death be...
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By Melissa Thompson, I'm a real estate agent helping buyers and sellers
(Thompson Real Estate)
One of the most important financial decisions you will ever make during your lifetime involves securing appropriate life insurance coverage. Life insurance policies provide financial protection to your loved ones after your passing, helping to ensure that they are well provided for during an incredibly difficult period. This article will delve into the various aspects of life insurance to help you make an informed decision.Understanding the Basics of Life InsuranceAt its core, life insurance is a contract between you and an insurance company. In exchange for regular premium payments, the insurer agrees to pay out a certain amount of money, known as the death benefit, to your designated beneficiaries upon your passing. This death benefit can be used to cover funeral costs, pay off debts,...
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By Manfred Lewis Leslie Horne & Associates, Realtor Spartanburg and Greenville SC
(Leslie Horne &Associates )
Click on the image to read the full article! #article #news #notablearticle #listreports #realestate #realtornearme #realtorspartanburg #realtor #realtorboilingsprings
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By John Winzenried
(843, REALTOR)
The Budget and Accounting Act of 1921 gave the President overall responsibility for budget planning by requiring him to submit an annual, comprehensive budget proposal to Congress; The President submits a comprehensive budget request to Congress in early February which outlines the Administration’s policy and funding priorities and the economic outlook for the coming fiscal year. This budget, which estimates spending, revenue, and borrowing levels, is compiled by OMB from input by the various federal agenciesHouse and Senate Committees (Congress) hold hearings on the President’s budget and the Budget Committees report a concurrent resolution on the budget that sets each committee’s allocation of spending authority for the next fiscal year and aggregate spending and revenue levels for at...
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By Matt Brady, One of San Diego's Best Lenders
(Watermark Capital)
The Fed’s monetary policy is revealed on Wednesday. The market is expecting a 25bp hike but the markets will be moving more so on Powell’s speech after the decision is announced. Here is how institutions are placing their bets    I agree with the market consensus. The Fed has to remain strong in its battle against inflation and no other (new) cracks in the economy have been made to prevent them from increasing rates. I’m still waiting to see a consistent trend of month-over-month declines in CPI before placing any bets on a Fed reversal.I am in the camp that we will see at most one more rate hike this year (after this week's).  This Friday’s labor report will help determine the validity of that prediction. Fed Chairman Powell has made it crystal clear that he wants to see a weaker labor...
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By Brian Madigan, LL.B., Broker
(RE/MAX West Realty Inc., Brokerage (Toronto))
Commercial Bond Yields CMB 5 Year - 3.32%*CANHOU 06/15/28 [-0.04%]   ‌ 10 Year - 3.36%*CANHOU 06/15/33 [-0.04%]         * denotes interpolated rate GoC 5 Year - 3.01% CAN 03/01/28 [-0.03%]   ‌ 10 Year - 2.87% CAN 12/01/32 [-0.03%]   ‌ 15 Year - 3.04%* Est. 12/01/38 [-0.03%]   ‌ 20 Year - 3.06%* Est. 12/01/43 [-0.03%] GOC Bonds are for reference purposes only Floating rate insured cost of funds 5.05% [-]                   Prime Rate 6.70% [-]    
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By Brian Skaar, Purchase Loan Specialist - VA, FHA, Conventional
(VanDyk Mortgage - VA, FHA, Conventional, VA Jumbo, Jumbo, Purchase Loans, & Refinance, Direct Lender)
The Low Down on Low down payment Home Loans and No down payment home loansWe offer a variety of options for Low down payment and No down payment home loans.  Here we will review each with some details and benefits. FHA Loans - zero down payment requiredWe are proud to offer Home buyers a zero down FHA loan option.  This helps reduce the amount of cash needed to purchase a home.   A typical home purchase will require monies for Down Payment, Closing Costs, and Prepaid items such as Property Taxes, Homeowners insurance, and per diem interest.  By pairing your new FHA Loan with our special FHA second mortgage, you can reduce the amount of cash you will need for your home purchase.  Our Zero Down FHA Loan can be used to purchase:  Single Family Homes Condos Townhomes PUDs Duplex / 2 unit Ow...
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By Jeff Masich-Scottsdale AZ Associate Broker,MBA,GRI, Arizona Homes and Land Group/ Buy or Sell
(HomeSmart Real Estate)
Are there still Seller May Carry homes for sale? YES! Here are Paradise Valley homes for sale with Seller May Carry or Owner Financing next to Scottsdale Arizona and UPDATED DAILY on the MLS. Are you ready to move to Paradise Valley the most expensive place to live in Arizona? When buying a home one will need a jumbo loan if not buying with cash. However there are usually some Owner May Finance homes available. (Photo: Paradise Valley with view of Camelback Mountain, Jeff Masich)Paradise Valley Arizona Estates with Owner Financing or Seller Carry Financing AvailableSee Paradise Valley homes for sale with Seller May Carry or Owner Financing on the MLS on FULL PAGE view and obtain your own FREE MLS SEARCH PORTAL in Arizona, creating your own filters, the most powerful home search tool ava...
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By Bradford Simmons, CPA providing tax debt resolution services
(Ocean Consulting Services LLC)
Many businesses are conducted though entities that are legally “separate” from their owners - i.e. LLC’s, corporations, etc. Generally business debts do not create legal liability for the business owner - absent an explicit personal guaranty by the owner. However for payroll tax debts - obligations can arise for not only the business owner but also individuals who have no ownership stake in the business.Wait, what??Let me explain. Stepping back we are discussing tax obligations that arise in connection with business employees - “wage earners”. There are two types of payroll taxes: 1) employee portion, and 2) employer portion. The employee portion consists of income tax withholding as well as withholdings with respect to FICA taxes (Federal Insurance Contributions Act). The FICA tax cons...
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By Matt Brady, One of San Diego's Best Lenders
(Watermark Capital)
Markets will be moving based on quarterly earnings this week as they really wait for Thursday’s GDP report and Friday’s PCE report. Next week we get the Fed’s monetary policy decision on Wednesday and unemployment numbers on Friday.This week’s PCE report is important as it is the Fed’s main inflation gauge. With the CPI trending the right way (still waiting on month-over-month decreases), investors are hopeful for this Friday’s report and that it will sway the Fed to ease on the rate hikes.The Fed still cites a strong labor market and “strong” economy as reasons to keep the rate hikes coming. It would have been more useful to have next week’s unemployment numbers come in before the Fed meeting…I said last week that the odds are in favor of a 25bp rate hike next (this) week. That was the...
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By Robert Rauf
(CMG Home Loans)
Educate yourself, you probably need less money than you thinkAre you renting a home? Would you like to own your own home? What is holding you back?  According to a recent survey done by the National Association of Realtors:Only 11% of current renters know they can purchase a home with 5 % or Less as a down payment.A WHOPPING 89% got the answer wrong thinking you need more than a 5% down payment.Scarier yet:  Almost 45% of renters believe you need to put at least 20% down to buy a home.Is this misconception keeping you from purchasing a home?You probably can get away with a lower down payment than you think, Here are the current minimum down payments available to qualified buyers for common programs: Conventional Loans as little as 3% down  FHA Loans 3.5% down (FHA also reduced its mortg...
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By Jason E. Gordon, Sr Loan Officer, CMA, CMPS, CDLP, CDRE, RCSD, CDPE
(AmeriFirst Financial Inc, San Diego, CA)
In case you haven't heard, we have some major controversy brewing yet again in the mortgage industry.  The topic is that effective 5/1/23, there will be significant changes to the "pricing adjustments" levied to Borrowers on Conventional (aka Conforming) Loans.Essentially, HIGH FICO Borrowers will pay MORE than they are currently paying, and LOW FICO Borrowers will be paying LESS than they are normally paying. While HIGH FICO Borrowers will still have more attractive pricing offered to them versus LOW FICO Borrowers, the changes are quite questionable from a myriad of reasons.For a full explanation of the changes, CLICK HERE.Below are the CURRENT LLPA's (prior to 5/1/23):Case Study:In referencing the above chart, let's say we have 2 Borrowers purchasing identical Owner-Occupied (O/O) Si...
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By Jason E. Gordon, Sr Loan Officer, CMA, CMPS, CDLP, CDRE, RCSD, CDPE
(AmeriFirst Financial Inc, San Diego, CA)
Are Borrowers with high FICO (Credit) Scores going to start paying higher rates than Borrowers with low FICO (Credit Scores)? The answer is no, but also yes.  Allow me to explain.Understanding "Pricing"There are 2 different ways that every Borrower pays when they obtain a mortgage, which are as follows: Up-Front Costs (aka Non-Recurring Closing Costs, aka NRCC's) - these are the 1-time costs a Borrower pays. If I asked any Borrower whether they preferred to pay "high costs" or "low costs" I think you can imagine the answer. Interest Rate (aka the "ongoing costs" of borrowing money) - not only do interest rates impact the principal + interest portion of a monthly payment, they also determine the amount of finance charges paid overall during the life of the loan. If I asked any Borrower w...
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