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 John H. Mason, Associate Broker - Realtor; Atlanta Georgia
(Harry Norman, Realtors)
When I purchased my first home in 1981, mortgage brokers could not lock in buyers at a rate because they were escalating by the day....so my first home purchase mortgage rate the minute I closed in St. Louis, MO was 18%.... and I was darn glad to get it before it went even higher!Today’s homebuyers are exceptionally sensitive to mortgage rates with house prices so high — and they’ve found their tipping point.After years of government intervention following the great recession and the first years of the Covid-19 pandemic that kept mortgage rates artificially low, today’s buyers have a skewed view of what “normal” mortgage rates are.The majority of potential homebuyers, 71%, say they will not accept a 30-year fixed mortgage rate over 5.5%, according to a survey done in March by John Burns...
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By Chris Goulart, California Hard Money Loans & Solutions
(All California Lending)
When property owners take out commercial loans, they often rely on banks for financing. Banks offer several benefits, such as lower interest rates, longer repayment terms, and more lenient repayment requirements. However, when the property's income drops below the debt service coverage ratio (DSCR) requirements, the bank can call the loan due, leaving the property owner in a tough spot. In such cases, private hard money commercial loans can be an excellent solution for property owners.Why Banks Call Commercial Loans DueWhen a property owner takes out a commercial loan, the bank assesses the property's income and expenses to determine the DSCR. The DSCR is a measure of the property's ability to generate sufficient income to cover the loan payments. If the DSCR drops below the required th...
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By Jackie A. Graves, President
(ChangeMyRate.com® A Mortgage Corporation)
According to the calendar, we’re officially already in spring, meaning it should be the busiest time in real estate. 2023 isn’t shaping up to be a typical year, however, so what does that mean for the housing market?Below, we take a look at some of the things most impactful in the housing and real estate market right now and what agents, buyers, and sellers alike should all know as we emerge from the cold winter and move towards warmer weather.Home PricesAccording to most analysts, the real estate market is in a period of correction, but the National Association of Realtors said the sales of existing homes went up 14.5% in February. That was the first increase in 12 months. It was also the biggest increase since 2020.The median home price in February was hovering around $363,000, which ...
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By Jackie A. Graves, President
(ChangeMyRate.com® A Mortgage Corporation)
If you’ve owned your residence for a while, you’ve probably built up a valuable amount of home equity you can tap into and use as cash. Three popular ways to draw equity from your home include a reverse mortgage, a home equity loan or a home equity line of credit (HELOC).All three of these financial instruments help homeowners access the equity in their homes, but they do so in different ways. Each allows homeowners to use the funds for any purpose, ranging from paying off their high-interest credit cards to remodeling a bathroom.However, each financing option works differently and one of these options may be more suitable than the others. Before deciding between a HELOC vs reverse mortgage vs home equity loan, it’s worth comparing how each works and the advantages each one has.Reverse ...
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By Bob Elliot, 20+ Yrs Industry Experience
(eXp Realty)
Last week's economic reporting included readings on construction spending and labor sector readings on employment and the national unemployment rate for March. Weekly readings on mortgage rates and jobless claims were also released.Commerce Department: February Construction Spending FallsThe U.S. Commerce Department reported less construction spending in February than in January as construction spending fell by 0.10 percent to a year-over-year reading of $1.844 trillion for all types of construction. Year-over-year construction spending increased by 5.20 percent.  While total construction spending fell in February, residential construction spending increased.Spending on single-family home construction slowed due to builders’ concerns over materials costs, supply chains, and a possible e...
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By Jackie A. Graves, President
(ChangeMyRate.com® A Mortgage Corporation)
The closing disclosure is the last document you’ll receive before you close on your home loan. Review this detailed five-pager carefully to make sure all the numbers look correct before closing day.Key takeaways Closing disclosures are legally required and provide final details of your loan You will have a mandatory three-day period to review the closing disclosure and make any changes Errors can be corrected before closing, but the loan amount and interest rate cannot unless there is a change in circumstances What is a closing disclosure?A closing disclosure is a legally required five-page statement of your final mortgage loan terms and closing costs. It contains details about your loan terms, monthly payments, fees and closing costs.Your mortgage lender must provide you with the final...
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By Charles Stallions, 850-476-4494 - Pensacola, Pace or Gulf Breeze, Fl.
(Charles Stallions Real Estate Services )
CHICAGO –  When interest rates rise, buyers are often forced to make hard choices about the cost of housing. Higher rates coupled with the significant rise in home values over the last few years have forced many buyers out of the homebuying market entirely. However, one segment of the real estate market – the mortgage assumption market – has the potential to outperform the rest. Smart agents can leverage their knowledge to bring some payment-sensitive clients back into the hunt for a new home. A mortgage assumption takes place when the buyer takes over the seller’s existing mortgage at closing in lieu of getting a new loan. Currently, the only loans in the market with a standard qualifying assumption clause are VA, FHA, and USDA loans. Deborah Baisden, CRS, GRI, a sales associate with ...
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By Will Hamm, "Where There's a Will, There's a Way!"
(Hamm Homes)
A Look Into the Markets   Home loan rates reached their best levels in two months on the heels of not-so-good news. Let's get into what happened and look into the week ahead. "I see hurricanes and lightning" Bad Moon Rising by Creedence Clearwater Revival Bad News is Good News for Rates The JOLTS (Job Openings and Labor Turnover Survey) report, a leading indicator on the health of the labor market, showed signs of cooling. It revealed 9.8 million jobs available, 700k less than expected and the first reading under 10 million in three years. If you consider how the labor market works for example, first firms stop hiring, then they cut hours and then if conditions persist, they lay people off. So, this could be a sign to the Fed that the labor market is finally showing some signs of slowin...
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By Bob Elliot, 20+ Yrs Industry Experience
(eXp Realty)
If you are looking for a quick source of cash, you may have been told that you can tap into the equity in your home. If you have at least 20 percent equity in your home, you can borrow against that equity at a relatively low interest rate for a quick source of funding. You might be deciding whether to apply for a home equity loan or a home equity line of credit, which is usually shortened to HELOC. Home Equity LoanA home equity loan is a loan that you will receive based on the equity you have in your home. It is often termed a second mortgage, and it comes with a fixed interest rate. This could make it more predictable when compared to a HELOC, which has a variable interest rate. A home equity loan will also provide you with a lump sum, so it could be a great option if you know exactly ...
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By Bob Elliot, 20+ Yrs Industry Experience
(eXp Realty)
If you are looking to buy a home, you may want to consider shopping for a loan first. Having your financing squared away ahead of time can make it easier to be taken seriously by buyers and help move along the closing process. For those who are looking to get a mortgage soon, keep in mind that the Debt-to-Income ratio of the borrower plays a huge role in the approval of your mortgage application.What is a Debt-to-Income Ratio?A debt-to-income ratio is the percentage of monthly debt payments compared to the amount of gross income that a person earns each month. Your gross monthly income is typically the amount of money you earn before taxes and other deductions are taken out. If a person's monthly gross income is $2,000 a month and they have monthly debt payments of $1000 each month, tha...
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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 Mistakes happen occasionally. But when they appear on your credit report and hurt your credit score, a mistake could make it harder to borrow money for a house, a car, or other purchases, as well as the overall cost of your home.  Credit reports are also used to decide whether you can rent an apartment; or determine the cost of auto and homeowners’ insurance. Lenders, landlords, insurance companies, and some employers rely on credit reports for background research.  So, what should you know about checking your credit report? Three Major Credit Bureaus  In the U.S., there are three nationwide credit reporting companies—Equifax, Experian, and TransUnion. Each organ...
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By Jackie A. Graves, President
(ChangeMyRate.com® A Mortgage Corporation)
Mistakes happen occasionally. But when they appear on your credit report and hurt your credit score, a mistake could make it harder to borrow money for a house, a car, or other purchases, as well as the overall cost of your home. Credit reports are also used to decide whether you can rent an apartment; or determine the cost of auto and homeowners’ insurance. Lenders, landlords, insurance companies, and some employers rely on credit reports for background research. So, what should you know about checking your credit report?Three Major Credit Bureaus In the U.S., there are three nationwide credit reporting companies—Equifax, Experian, and TransUnion. Each organization collects information on your credit accounts and payment history and assigns a credit score, but their sources and methods...
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By Jason E. Gordon, Sr Loan Officer, CMA, CMPS, CDLP, CDRE, RCSD, CDPE
(AmeriFirst Financial Inc, San Diego, CA)
“Unlock the Secrets to Successful Co-Parenting with 25+ World-Class Experts at the Co-Parenting Success Summit!”Co-parenting can be a difficult journey, especially when the relationship with your ex-spouse is strained or acrimonious. However, it's possible to navigate this journey successfully and raise happy, healthy children. That's why the Co-Parenting Success Summit is such a valuable resource. Register here for FREE! This virtual event brings together 25+ world-class experts to share their tips, strategies, and tools for creating healthy family relationships, promoting stability, and raising happy kids before, during, and after divorce, each covering the 5 most important areas of navigating the co-parenting journey. Social Aspect: Divorce can have a significant impact on a person's...
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By Bob Elliot, 20+ Yrs Industry Experience
(eXp Realty)
When you are considering purchasing a home, understanding the lending guidelines regarding a down payment is important. Here are a few key tips to consider:Gifting of a Down PaymentThere are some programs that will allow you to use a gift for your home down payment. However, before you assume this, make sure you talk to your loan officer. Generally speaking, the lender will require the person making the gift to provide a letter stating the money was a gift and does not require repayment.Windfalls as a Down PaymentWhen people hit the lottery or come into money through an inheritance, one of the first things they may consider is buying a new home. However, it is important ot keep in mind that lenders will typically want to know exactly how you came up with your down payment.Borrowers stil...
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By Jeff Masich-Scottsdale AZ Associate Broker,MBA,GRI, Arizona Homes and Land Group/ Buy or Sell
(HomeSmart Real Estate)
Here are Paradise Valley homes for sale with Seller May Carry or Owner Financing next to Scottsdale Arizona and UPDATED DAILY on the MLS for the day that you are reading this. 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 availableHave you t...
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By Jackie A. Graves, President
(ChangeMyRate.com® A Mortgage Corporation)
Buying your first home comes with costs and possibly stress, but there’s at least one potential silver lining. If you’re within income limits, you might be able to qualify for a mortgage credit certificate, also called a mortgage interest credit certificate or MCC.What is a mortgage credit certificate? It could save you money when you file your taxes and make it easier to pay your mortgage each month. Learn more about this mortgage certificate, who is eligible, how to apply, how to claim the tax credit and what happens if you refinance.What is a mortgage credit certificate?A mortgage credit certificate allows qualifying homeowners to claim a refund for a portion of the interest paid on their mortgage each year, up to $2,000. A state or local housing finance agency administers the MCC pr...
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By Chris Goulart, California Hard Money Loans & Solutions
(All California Lending)
Private hard money lending in California is a popular funding source for real estate investors and business owners. These loans, which are typically provided by private individuals or companies, are secured by real estate and offer a more flexible alternative to traditional bank loans.One of the main advantages of private hard money lending in California is its flexibility. Hard money lenders in California are often more willing to work with borrowers who have less than perfect credit or who are in unique financial situations. This can make it easier for borrowers to obtain the funding they need, even if they don't qualify for a traditional bank loan. Additionally, private hard money lenders in California are also more likely to consider the value of the collateral (the real estate) and...
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By Jerry Thomas-Construction Loans, Construction Loans in MI, OH, PA, VA, GA and FL.
(Cranbrook Loans)
I’ve been lucky enough to be a Mortgage Loan Officer for 30 years now. While I’m happy to have any business that comes my way, I’ve specialized in construction lending almost from the beginning of my career. As we came out of the housing crisis in 2010, the options for construction lending had shrunk dramatically. No more zero down for everyone, no more stated income, minimum credit scores had risen and maximum debt to income ratios were lower. All of a sudden, government construction loans, FHA and VA, became very important options to have. From time to time I am asked by Veterans which construction program is best for them, Conventional or VA. There are a lot of factors to consider before answering this question, credit score/history, debt to income, needed loan amount and if the Vete...
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By Manfred Lewis Leslie Horne & Associates, Realtor Spartanburg and Greenville SC
(Leslie Horne &Associates )
Down payments are not the only expense you should be planning for; you should also have money earmarked for inspections, credit reports, insurance, taxes, and closing costs – which can range from 3%-6% of the home's purchase cost. Long story short, many other things need to be planned for, but you don't need to stress; I can help you be prepared and answer any questions you have. Just send me a message! #thehelpfulagent #home #houseexpert #house #listreports #househunting #finances #smartmoney #investment #themoreyouknow #icanhelp #realestate #realestateagent #realtor #happyhomeowners
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By Jane & Jeff Daley, PhD, Scottsdale Real Estate Arizona
(Luxury Valley Homes Scottsdale)
How Changing Mortgage Rates Can Affect YouThe 30-year fixed mortgage rate has been bouncing between 6% and 7% this year. If you’ve been on the fence about whether to buy a home or not, it’s helpful to know exactly how a 1%, or even a 0.5%, mortgage rate shift affects your purchasing power.The chart below helps show the general relationship between mortgage rates and a typical monthly mortgage payment:Even a 0.5% change can have a big impact on your monthly payment. And since rates have been moving between 6% and 7% for a while now, you can see how it impacts your purchasing power as rates go down.What This Means for YouYou may be tempted to put your homebuying plans on hold in hopes that rates will fall. But that can be risky. No one knows for sure where rates will go from here, and try...
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