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 Paddy Deighan MBA JD PhD, Paddy Deighan J.D. Ph.D
(http://irstaxdebt.pro)
To quote the classic Budweiser commercials (prior to the insanity) "Real men (and women) of genius"...what are the feds thinking when they endeavor to create a new mortgage structure in which those borrowers with FICO scores at 620 receive a 1.75% fee discount whereas those with a 740 fico score PAY a 1% fee!  Truly REAL MEN OF GENIUS.First, FICO is merely an average - an estimate and as we all know, the three credit bureau scores can vary widely.Who can believe this is acceptable...those with a higher credit risk PAY LESS?? Didn't these idiots learn anything  from the 2008-10 meltdown.  Haven't they learned from subprime car lending which has default rates of around 28%.Hopefully this will not get any further....this is what happens when idiots rule the roust and there are no consequen...
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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)
The Benefits of NonQM Mortgage Loans The real estate and mortgage industries haven't forgotten 2007-2008.  It was a year of lenders closing almost daily, loan products disappearing, and for many, the American Dream itself turning into a nightmare as the real estate bubble burst and the Great Recession took hold.  When the dust began to settle and scapegoats were sought, one type of loan bore the brunt of blame - sub-prime mortgages. Because of this, in the years beyond 2008-2009, the home lending landscape included almost exclusively just a handful of products; jumbo loans, conventional loans, FHA, VA, USDA, HELOCs, and a handful of portfolio products offered by usually small, regional banks.  Sub-prime was a thing of the past.  And for many people, this was a good thing.  But not every...
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By Matt Brady, One of San Diego's Best Lenders
(Watermark Capital)
Inflation numbers came in and they showed signs of cooling. CPI rose 5% year over year and 0.1% month over month, lower than expectations. Although this is good news and shows we are moving in the right direction, we need about 3 consecutive months of month-over-month declines to really start celebrating.With inflation numbers coming in lower than expected, here is how institutions are placing their bets for the next Fed meeting.     16.5% believe there will be no Fed action while the rest believe there will be a 25bp hike. If there is no bank drama up to the next Fed meeting, I am in the 25bp rate hike camp. Chairman Powell has had his foot on the accelerator on rate hikes and I expect it to continue as long as he sees fit.Click HERE to read more on inflation and the possible outcomes....
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By Manfred Lewis Leslie Horne & Associates, Realtor Spartanburg and Greenville SC
(Leslie Horne &Associates )
Big decreases in consumer (CPI) and producer (PPI) inflation in March were encouraging signs that inflation (and mortgage rates) should keep moving lower. At the national level, underlying home demand remains very strong and reasonably-priced homes are selling quickly because the supply of homes remains tight. #housingmarket #realestatenews #housingmarketupdates #realestatemarket #mortgage #realestate #whatsupwithrealestate
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By Nick Marr, Promoting real estate internationally
(HOMESGOFAST)
The mortgage scene has been unpredictable lately. In 2022, there was a record—breaking increase in rates. The median home ownership length increased by five years in the last decade. With so many changes, it may be challenging to distinguish myths from the truth. If you plan on getting a mortgage for your home, it is important to have all the facts.  Here are some common myths and misconceptions about mortgages.1. Myth: Preapproval Is the Same as PrequalificationFact: Pre Approval Is More Accurate than PrequalificationThe biggest difference between preapproval and prequalification is the verification level a lender has to do before issuing an estimate. Here are the differences in detail:PrequalificationIf you are prequalified, your lender only takes your essential financial information....
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By Jennifer Kropf, Home and Lifestyle blogger
(Healthyhappyimpactful.com)
We all know the extensive benefits of budgeting and yet, it can be so difficult to start and/or commit to it. In order to help you begin and feel confident in sticking with your budget, it’s best to know the five major issues with budgeting so you can avoid these mistakes all together.  “Used correctly, a budget doesn’t restrict you; it empowers you.” –Tere Stouffer 1. Not Writing Your Budget DownBudgets cannot be done in your head; there are just too many variables, numbers and factors that make your personal budget. If you don’t have a goal written down or your expenses accounted for then how will you keep track of your progress? A visual representation should be the starting point of your budgeting process, whether that’s using an app, worksheet or simple template. 2. Not TrackingFol...
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By Jennifer Kropf, Home and Lifestyle blogger
(Healthyhappyimpactful.com)
Being healthier has many benefits. One additional benefit you may not think about is that it can actually boost your bank account. Here are five ways to add health and money to your life. 1. Eating at homeWhile eating out or grabbing takeout seems convenient and easy, eating out costs more money than eating at home. Eating out too often can lead to unhealthy bodies and habits. Often, the foods we tend to order at restaurants contain more salt and fat than food we would prepare at home. We are unable to control the ingredients that go into food prepared by others and portion size tends to be larger which causes us to overeat. So, what can we do to eat at home and save money? Consider these tips to stop eating out and start eating at home. By making a plan and a few changes, you are on yo...
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By Matt Brady, One of San Diego's Best Lenders
(Watermark Capital)
Unemployment came in a tick lower on Friday at 3.5%, reigniting fears of a rate hike justified by a strong labor market. New jobs added, however, were lower than expected.This is a very big week for us as we get CPI and PPI inflation data. Last month’s year-over-year reading came in at 6%. The market is expecting something in the mid-lower 5’s.Whether that happens or not, something that is worthy of note is the consistent decline in year-over-year inflation since June of 2022.     Although the trend looks great, the recent cut in oil production by OPEC and other nations overseas may lead to an increase in inflation for next month.Besides inflation data, we hear from a lot of Fed officials, get the minutes from the last Fed meeting, and receive other economic data.Tuesday Chicago Fed Pre...
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By Matt Brady, One of San Diego's Best Lenders
(Watermark Capital)
This is an update to the blog I wrote last week introducing a new shared equity program in CA.   Well, it took a whole 7 days for CalHFA to use $300,000,000 of The Dream Home For Some (all) Program. I think that people that were already planning to use traditional DPA programs just switched to this program. I do not think they helped very many new buyers. I do think the State will make out very well on this program compared to previous options. The buyers have to pay back the down payment that they are fronted, plus 20% equity that is accumulated from purchase to sale or refinance.   Given the history of appreciation in CA CalHFA basically makes 20% on its money. And if people keep the home long term the State will make 250% of the investment.
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By Robert Rauf
(CMG Home Loans)
It's official! The same great service and people you've gotten to know at Homebridge are now backed by the product range and state-of-the-art technology of CMG Home Loans.  The combined companies now have approximately 100,000,000,000 in servicing and are able to serve our clients from coast to coast.Stay tuned for more fun... We have some great programs to help our clients get the home of their dreams and even get them on the path to homeownership with options to help save for down payment and closing costs with the potential for matching funds.Please keep me in mind if you are looking for a Mortgage in NJ, I'd be happy to discuss options with you. I can also help guide you in Most other states for a mortgage or an Equity Loan as well; ( Everywhere but UT) Give me a call.Robert Rauf Mo...
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By Matt Brady, One of San Diego's Best Lenders
(Watermark Capital)
The markets were volatile again this past week ending the week on a good note with PCE inflation coming in slightly lower than expected.Bank failures, inflation cooling, unemployment ticking up…things are looking set for a Fed breather on rate hikes. The Fed should have one more rate hike in them but if we keep getting tough economic news then it may stop there.As I’ve said before, the recession story will inevitably take center stage over the inflationary one. It’s a contrarian outlook with all of the fear in the markets currently, but I think we will have another boom before the real downturn.As more cracks in the system reveal themselves the Fed will be forced to intervene. They will of course be late to the party, as they always are. They will cut rates to stimulate the economy whi...
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By Matt Brady, One of San Diego's Best Lenders
(Watermark Capital)
This month’s demise of three major banks sent shockwaves through an already fragile U.S. economy. The news sparked fears that a string of similar failures was imminent, resulting in a financial crisis similar to what the country experienced in 2007–2008. As homebuilders, lenders, and industry professionals struggled to determine the bank failures’ impact on the housing market, mortgage experts were already sharing their predictions. Many expect the upheaval to cause a significant shift in interest rate trends. But before we dive into this, here is a quick summary of the recent failures. Three banks shutter their doorsThe March 10 shutdown of Santa Clara, Calif.-based Silicon Valley Bank (SVB) was the second largest bank failure in U.S. history. Though known as a large supporter of tech...
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By Brian Madigan, LL.B., Broker
(RE/MAX West Realty Inc., Brokerage (Toronto))
Commercial Bond Yields CMB 5 Year - 3.36%*EST. CANHOU 06/15/28 [-0.07%]   ‌ 10 Year - 3.40%*EST. CANHOU 06/15/33 [-0.09%]         * denotes interpolated rate GoC 5 Year - 3.06% CAN 03/01/28 [-0.02%]   ‌ 10 Year - 2.93% CAN 12/01/32 [-0.03%]   ‌ 15 Year - 3.11%* Est. 12/01/38 [-0.03%]   ‌ 20 Year - 3.13%* 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 Robert Rauf
(CMG Home Loans)
USDA announced it is reviewing the Rural Areas, It appears that in NJ we may lose a few eligible areas.Every 5 years USDA does a review and adjusts the designated areas of eligibility. Why is this important? USDA is one of the BEST ways to purchase a home with no down payment.  There are geographical restrictions and income limits, but at the end of the day- they are reasonable and offer buyers an option for a great market interest rate and No PMI, just an inexpensive Guarantee fee that is a fraction of typical Mortgage insurance.In NJ these are the areas we may lose eligibility:I have highlighted the ones I feel will hurt the most, and common areas I use the USDA program for my clients.If you are curious about other areas of the country that are facing changes you can see the full list...
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By Matt Brady, One of San Diego's Best Lenders
(Watermark Capital)
In the face of bank failures, the Fed still raised rates by a quarter point, as the markets expected. They couldn’t raise by the 50bps they wanted to a few weeks earlier and inflation is too scary for Powell to do nothing.We will look back on this and blame the fed for the impending recession. I said in August 2021 that the Fed was lying when they said inflation was “transitory.” I said at the beginning of last year that there will be no such thing as a “soft landing.”The Fed was late to raise rates (you should do it when the economy is robust/growing, not contracting) and did so at too an aggressive pace never seen before. Now they have this incredible balancing act to perform as we are at the tipping point of a financial institution breakdown.I mentioned in prior issues how the unrav...
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By Brian Madigan, LL.B., Broker
(RE/MAX West Realty Inc., Brokerage (Toronto))
Commercial Bond Yields CMB 5 Year - 3.05%*EST. CANHOU 06/15/28 [-0.11%]   ‌ 10 Year - 3.21%*EST. CANHOU 06/15/33 [-0.07%]         * denotes interpolated rate GoC 5 Year - 2.74% CAN 09/01/27 [-0.14%]   ‌ 10 Year - 2.69% CAN 12/01/32 [-0.08%]   ‌ 15 Year - 2.93%* Est. 12/01/38 [-0.06%]   ‌ 20 Year - 2.98%* Est. 12/01/43 [-0.04%] GOC Bonds are for reference purposes only Floating rate insured cost of funds 5.05% [-]                   Prime Rate 6.70% [-]    
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By Tim Bray, B.S. Real Estate (UConn)
(Seaport Real Estate Services)
 Commercial real estate projects can be a lucrative investment opportunity for those who are willing to take on the associated risks. While financing options for these projects vary, bridge loans are often used to cover the gap between the initial investment and the eventual long-term financing. However, recent trends in the market have shown a rise in bridge loans with radically lower interest rates than the current rate. This may seem like an excellent opportunity to save on interest costs, but it poses significant risks to investors and lenders alike.First, it's essential to understand what a bridge loan is. A bridge loan is a short-term loan used to finance the gap between the purchase of a property and long-term financing. Typically, these loans are used to cover the cost of renova...
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By Paddy Deighan MBA JD PhD, Paddy Deighan J.D. Ph.D
(http://irstaxdebt.pro)
I have written numerous posts recently about the upcoming Fed Reserve Central Bank Digital Currency (CBDC) and no, I am not a fan of losing our freedom at the hand of additional governmental control. Readers have asked me about this because many believed that ALL digital assets/currencies may be a good thing.  There is a world of difference between decentralized assets and centralized (the Fed's CBDC). Decentralized assets are ones that gains its value from the people who use it, and does not rely on any bank, authority or third party to function or exist. Centralized assets are the opposite..they are controlled by a bank that issued them or a third party or government,,,in the case of the upcoming CBDC, the authority is the Federal Reserve - which is a cadre of unelected bureaucrats th...
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By Matt Brady, One of San Diego's Best Lenders
(Watermark Capital)
Every conversation I have with clients when we are locking rates contains the question "what is going to happen with rates?". I then try to explain we can look at trends in the 10 YR Treasury to indicate the trend in Mortgage Backed Securities (MBS).The MBS operates in inverse to what the US Treasury is doing. I found a great chart above that really drives home the relationship between the two. You can see when one is down the other is up.To further complicate it when the MBS (gold line above) is up, rates are down. To drive home the point, you can always go to Market Watch (link below)and view a chart showing the last 5 days and you can see why we have had mortgage rate improvement.https://www.marketwatch.com/investing/bond/tmubmusd10y?countrycode=bx Have an amazing weekend!   
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By Jesse Rivera, Mortgage Broker
(Prospect Lending)
These three new loan products just came across my desk. I love how lenders are thinking outside the box, and using down payment assistance to help buyers get approved.1. Common Sense Mortgage - A Return to Common-Sense Underwriting. With this loan, the lender does not check income or employment, and does not factor in any DTI. To qualify for the loan, they use credit, LTV (need at least 20% down) and reserves. 2. FHA 3.5% Forgivable Down Payment Assistance. Geared towards first-time homebuyers or first responders, medical professionals, civil servants, or educators. This Grant is a REAL Grant. This is NOT a Silent 2nd; nothing will be recorded on the title. It goes away when buyer refinances or sells.3. 20% Down Payment Assistance. This loan is with the state of California's CalHFA prog...
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