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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 Dora Griffin, NMLS 6380
(D A Griffin Financial.LLC)
 Home Loans 101: What is Private Mortgage Insurance (PMI)?What is PMI in home financing?Private mortgage insurance, or PMI, is insurance that buyers may be required to obtain. PMI is usually required on a conventional loan if the down payment is less than 20% of the home's purchase price.PMI serves as a safeguard for lenders in case borrowers default on their mortgage payments. It provides protection by covering a portion of the lender's losses if the loan goes into foreclosure. While PMI benefits the lender, it allows buyers to purchase a home with a lower down payment, making homeownership more accessible.It's important to note that PMI is an additional cost that borrowers must factor into their monthly mortgage payments. The specific amount of PMI can vary based on factors such as lo...
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By Joe Jackson, Clintonville and Central Ohio Real Estate Expert
(Keller Williams Capital Partners Realty)
This blog highlights the importance of mortgage preapproval as the first step in the home-buying journey. It’s a great reminder that being financially prepared can make the process smoother and give buyers a competitive edge. A must-read for anyone serious about finding their dream home! Have a super fantastic week!Joe Jackson, Realtor-KWCPDreaming of finding the one? 🏡✨ The first step to making it a reality is getting preapproved! 💵 It helps you understand your budget and shows sellers you’re ready to make a serious offer. Not sure where to start? I can connect you with one of my trusted mortgage loan officers to guide you every step of the way. Let’s make your dream home a reality! #thehelpfulagent #home #houseexpert #house #listreports #homeowner #househunting #realestate #a022725 #i...
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By Manfred Lewis Leslie Horne & Associates, Realtor Spartanburg and Greenville SC
(Leslie Horne &Associates )
Dreaming of finding the one? 🏡✨ The first step to making it a reality is getting preapproved! 💵 It helps you understand your budget and shows sellers you’re ready to make a serious offer. Not sure where to start? I can connect you with one of my trusted mortgage loan officers to guide you every step of the way. Let’s make your dream home a reality! #thehelpfulagent #home #houseexpert #house #listreports #homeowner #househunting #realestate #a022725 #investment #realestateagent #realtor #dreamhome
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By Ellie McIntire, Luxury service in Central Maryland
(Ellicott City Clarksville Howard County Maryland Real Estate)
Investing in real estate is a great way to build wealth, generate passive income, and achieve financial freedom. However, getting started can feel overwhelming. If you're wondering how to take your first steps into real estate investing, this guide will help you navigate the process with confidence.1. Educate Yourself Before making any investment, it's crucial to understand the basics of real estate. Read books, listen to podcasts, and follow industry experts. Some great books to start with include Rich Dad Poor Dad by Robert Kiyosaki and The Millionaire Real Estate Investor by Gary Keller.2. Set Clear Goals Determine what you want to achieve with real estate investing. Are you looking for passive rental income, long-term appreciation, or quick profits from flipping properties? Your goa...
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By Manfred Lewis Leslie Horne & Associates, Realtor Spartanburg and Greenville SC
(Leslie Horne &Associates )
A FICO score is used to help a lender calculate how much money to loan a borrower. It’s based on credit reports. The higher the score the better. But, don’t let a lower score keep you from pursuing a home, it is just one part of how you qualify for a mortgage. #thehelpfulagent #home #houseexpert #house #listreports #homeowner #a022525 #househunting #realestate #investment #finances #realestateagent #realtor #dreamhome
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By Bob Elliot, 30Yrs Experience
(eXp Realty)
The most impactful report released last week was the regular Consumer Sentiment reports, which have indicated the more recent concerns rising food costs have soured the view on the current state of the economy for the U.S. The talks between the Federal Reserve members have also slanted in a negative direction as they feel they still do not have a strong grip on inflation. With the Trump administration also shaking things up in the office with their views on Tariffs, the land lending and broader markets have seen a lot of turmoil and uncertainty about the future. There should be dampened expectations going forward across all markets.Consumer SentimentConsumer sentiment sours as worries grow over the outlook for the U.S. economy. Confidence drops 10% from January to the lowest level since...
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By Nick Vandekar, 610-203-4543, Selling the Main Line & Chester County
(Realty ONE Group Advocates 484-237-2055)
There are many things to consider for buyers of Main Line and Chester County Homes and with the rise in interest rates one of the big questions being asked "Is an Adjustable Rate Mortgage Right for You?"So let's examine this and give you the information so you can feel confident about the decision you will make on what type of mortgage to use.Firstly the fixed rate mortgage is exactly that, the rate is fixed for the duration of the loan. You basically know what you will be paying for the term of the loan, the only part that might adjust is taxes if you pay those through your mortgage company. This is a great product, having come from the UK many years ago where we had floating rates and the mortgage interest rate would rise whenever the bank rate rose and fall when it fell, made for a l...
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By Bob Elliot, 30Yrs Experience
(eXp Realty)
The major inflation data reports have been released, and the initial readings indicate that inflation has exceeded expectations. While the data suggests that the Federal Reserve is unlikely to allow any further rate cuts beyond those already implemented, optimism remains in the broader lending markets. This optimism is driven by expectations that the new administration may introduce changes to monetary policy in the longer term. Although inflation has come in higher than expected, it remains to be seen what next week's PCE Index—the Federal Reserve’s preferred inflation indicator—will reveal.Consumer Price Index (CPI)Consumer price data for goods and services was released earlier today for January, showing a 0.5% increase month-over-month and a 3.0% increase year-over-year. This exceede...
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By Doug Jones, Mortgage Broker - NMLS 286668
(Mortgage Magic)
I have done hundreds of HELOC loans over the years but my first ventures into real estate lending was actually doing fixed rate closed end second mortgages. I spent two years managing an office for Old Stone Credit (owned at the time by Old Stone Bank) and our only product was a fixed rate 15 year second mortgage loan.Since 2008 HELOCs have lost favor with many borrowers. They can remember when in 2008 lenders froze the money available for the loan. In one day without notice lenders froze thousands of accounts. The HELOC worked like a credit card and customers  had access to the loan limit when needed, but, in one day that was all gone. Another concern for many borrowers is that the loan is adjustable and the lenders always skip over the part telling that the loans have a maximum rate t...
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By Joe Jackson, Clintonville and Central Ohio Real Estate Expert
(Keller Williams Capital Partners Realty)
This blog provides a timely analysis of how buyers are adapting to higher mortgage rates. It highlights shifting market trends, buyer strategies, and the long-term outlook for home affordability. The insights are valuable for both buyers and sellers navigating today's real estate landscape, offering a realistic perspective on market expectations. Have a super fantastic week!Joe Jackson, Realtor-KWCP Are Buyers Getting Used to Higher Mortgage Rates? Minneapolis, MN: Higher interest rates have been around for more than two-years now. They have reshaped the real estate landscape, and limiting market growth potential right alongside soaring home prices. This dual challenge has made affordability a key concern in the housing sector for years. While many in the industry wish for a drop in int...
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By Joe Metzler, Sr Loan Officer
(Cambria Mortgage)
Are Buyers Getting Used to Higher Mortgage Rates?Minneapolis, MN: Higher interest rates have been around for more than two-years now. They have reshaped the real estate landscape, and limiting market growth potential right alongside soaring home prices.This dual challenge has made affordability a key concern in the housing sector for years. While many in the industry wish for a drop in interest rates, there's less enthusiasm for lower home prices. Current homeowners generally enjoy higher property values, but those looking to finance a new purchase face a tougher scenario.The Lock-In Effect: Understanding Homeowner ReluctanceWhat Is the Lock-In Effect? Many homeowners are stuck with their current properties due to advantageous mortgage rates (e.g., 3%) compared to today's higher rates (...
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By Manfred Lewis Leslie Horne & Associates, Realtor Spartanburg and Greenville SC
(Leslie Horne &Associates )
Dreaming of owning your own home? Saving for a down payment is a big step, but with the right plan, it’s totally doable! 💪✨ Need advice or have questions about what it takes to make it happen? I’m just a message away. Let’s get you one step closer to finding your dream home! #thehelpfulagent #home #houseexpert #house #listreports #finances #investment #a021825 #realestate #realtor #realestateagent #dreamhome
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By Jerry Thomas-Construction Loans, Construction Loans in MI, OH, PA, CO VA, GA and FL
(Cranbrook Loans)
Many will tell you that the VA does not have a construction loan program. You can buy a new existing home with a VA Purchase loan, but you can’t hire a builder and pay them draws with a VA Construction Loan. This is not true. I refer any disbelievers to Chapter 7.2 of the VA Manual (google it). The VA allows 100% financing on a home to be built, just like their purchase program. The qualifying guidelines are the same as a VA purchase loan, although some lenders do have some “overlays”. They work, for the most part, just like their Conventional and FHA counterparts (yes, there is an FHA Construction to Perm program!). The builder goes out and does a certain amount of work and they get paid for that work. They do not have to build the entire home before they get paid, as they would on a p...
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By Jerry Thomas-Construction Loans, Construction Loans in MI, OH, PA, CO VA, GA and FL
(Cranbrook Loans)
When you lock a rate on a purchase or refinance loan, you most likely only locked the rate for 30 days or less. That should be more than enough time to process and close the loan, assuming there are no unusual issues and everyone is cooperating. Once that loan is closed and funded, the lender has their pay day, a saleable loan.  But that is not the case with a 1x close Conventional Construction to Permanent loan. These loans are not saleable, and the lender doesn’t have their payday, until the C of O issued, the final inspection is done by the appraiser and you, the borrower, sign the Modification Agreement. This modifies the loan from an interest only payment construction loan to your 30-year, fixed rate mortgage.  So when the lender does offer you a rate lock on these loans, they need...
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By Joe Metzler, Sr Loan Officer
(Cambria Mortgage)
Insurance Companies making getting a mortgage harderMinneapolis, MN: “The growing crisis in the insurance industry may make it hard to get a mortgage in parts of the country in the coming decades”, Federal reserve Chairman Jerome Powel correctly stated recently.The insurance industry, beaten up hard by large costly events, like hurricanes, and California wildfires, combined with the dramatic increase in the cost to fix cars, and rebuild homes, have had no choice but to dramatically increase premiums, severely limit coverages, or in some areas, leave the market altogether.Worse yet, insurance company reduced coverages are now conflicting with Fannie Mae and Freddie Mac underwriting guidelinesFor example, almost all homeowners insurance is switching to something known as ACV roof coverage...
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By Peter Kici EA, Enrolled Agent
(Tax Debt Relief Group)
You might find it surprising that filing a lien against your child can actually teach them valuable financial lessons. While it may sound extreme, this approach emphasizes accountability for unpaid debts. It's a unique way to reinforce the importance of honoring obligations. But how do you balance this with nurturing a trusting relationship? Understanding the nuances of this strategy could transform your child's financial perspective for years to come.Key Takeaways Filing a lien can encourage financial accountability by teaching children about the consequences of borrowing and repayment. It reinforces the importance of financial obligations within family dynamics, fostering responsibility and awareness. A lien can serve as a practical tool to ensure that financial commitments are taken ...
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By Bob Elliot, 30Yrs Experience
(eXp Realty)
Last week's reports were plentiful, but few had a greater impact on the lending and broader markets. The most significant among them were the Nonfarm Payrolls, Consumer Credit, and Consumer Sentiment reports. Currently, considerable movement within the government administration is contributing to widespread uncertainty and instability across various markets. Additionally, the recent outbreak of Avian Flu has driven poultry prices sharply higher, further adding to consumer unease. This uncertainty is reflected in the Consumer Sentiment reports, which have seen their most significant decline since July, as inflation concerns intensify.Meanwhile, Consumer Credit data came in worse than expected, while job reports exceeded expectations. Given these factors, we should anticipate continued un...
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By Laura Sellers, www.AuburnOpelikaALRealEstate.com
(Berkshire Hathaway HomeServices Preferred Real Estate, Inc.; www.AuburnOpelikaALRealEstate.com)
Fixed-Rate vs. Adjustable-Rate Mortgages: What’s the Difference?Choosing the right mortgage can feel overwhelming, especially when deciding between Fixed-Rate and Adjustable-Rate options. Let’s break down the key differences to help you make an informed decision.When it comes to financing your home, understanding the differences between Fixed-Rate and Adjustable-Rate Mortgages (ARMs) is essential. Here’s what you need to know:Fixed-Rate Mortgages: Definition:A Fixed-Rate Mortgage has the same interest rate throughout the life of the loan. Pros: Stable monthly payments Consistent interest rates protect you from market fluctuations Great for long-term buyers who want predictable costs Cons: Higher initial interest rates compared to ARMs Less flexibility if market rates decrease Adjustable...
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By Kimo Stowell, REALTOR® RS-76763 - Honolulu Hawai'i
(HI Pro Realty LLC RB-21531 )
               Latest rates, based on 20 percent down, $200,000 owner-occupant mortgages. The rates and terms may vary; check with lenders for details. Rates may have changed click here to verify Wednesday, February 5th, 2025   Lender Term/Type Interest Rate % Points % *APR American Savings Bank808-593-1226NMLS#423168 15-YR Fixed 5.500 2.000 5.942 30-YR Fixed 6.375 2.000 6.656 5-YR ARM 5.000 2.125 6.462 Bank of Hawaii877-616-2636 15-YR Fixed 5.625 0.750 5.742 30-YR Fixed 6.125 1.750 6.292 5-YR ARM 5.375 1.750 6.551 Central Pacific Bank808-544-0500NMLS#416603 15-YR Fixed 5.500 2.000 5.951 30-YR Fixed 6.250 2.125 6.546 5-YR ARM 6.875 0.000 7.219 Finance Factors808-548-3300NMLS#449916 15-YR Fixed 5.500 2.250 6.081 30-YR Fixed 6.375 1.875 6.704 5-YR ARM 6.125 1.500 7.114 First Hawaiian Bank...
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By Manfred Lewis Leslie Horne & Associates, Realtor Spartanburg and Greenville SC
(Leslie Horne &Associates )
The principal of your mortgage, like the principal of a school, is your pal, and so am I! Want to understand more about buying a house? I can answer all your questions. #thehelpfulagent #home #house #houseexpert #listreports #homeowner #realestate #a020525 #homeowner #themoreyouknow #realtor #icanhelp #realestateagent #happyhomeowner
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