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 Bob Elliot, 20+ Yrs Industry Experience
(eXp Realty)
Last week’s economic reporting included readings on home prices, inflation, and pending home sales. Weekly readings on mortgage rates and jobless claims were also published.S&P Case-Shiller Home Price Indices Report Slower Home Price Growth in JanuaryHome price growth cooled in January according to S&P Case-Shiller’s 20-City Home Price Index. Home prices increased by 2.50 percent year-over-year in January but rose at a slower pace than December’s reading of 4.60 percent. The FHFA Home Price Index also showed slower growth in January with year-over-year home price growth of  5.30 percent as compared to December’s home price growth rate of 6.60 percent.The top three cities for home price growth in the 20-City Home Price Index were Miami, Florida, Tampa, Florida, and Atlanta, Georgia. In c...
Comments 2
By Bill Salvatore - East Valley, Realtor - 602-999-0952 / em: golfArizona@cox.net
(Arizona Elite Properties )
UNDERSTANDING HOW A REVERSE MORTGAGE WORKS “Don't let retirement be a  time of financial worry – explore the benefits of a reverse mortgage today.”     As you approach retirement age, one of the biggest concerns is how to manage your finances  while maintaining your quality of life. A reverse mortgage may be one option worth considering.     In Canada, reverse mortgages are becoming increasingly popular as a way to unlock the equity  in your home and supplement your income during retirement.  So, what is a reverse mortgage? It is a loan that allows homeowners aged 55 and older to  access the equity in their homes without having to sell their property.  With a reverse mortgage,  you can convert a portion of your home's equity into cash that you can use to pay off debts,  cover living ex...
Comments 2
By Fred Carver Personal Real Estate Corporation, Accredited Real Estate Consultant
(RE/MAX Camosun Victoria BC Real Estate)
UNDERSTANDING HOW A REVERSE MORTGAGE WORKS“Don't let retirement be a  time of financial worry – explore the benefits of a reverse mortgage today.”  As you approach retirement age, one of the biggest concerns is how to manage your finances  while maintaining your quality of life. A reverse mortgage may be one option worth considering.   In Canada, reverse mortgages are becoming increasingly popular as a way to unlock the equity  in your home and supplement your income during retirement. So, what is a reverse mortgage? It is a loan that allows homeowners aged 55 and older to  access the equity in their homes without having to sell their property. With a reverse mortgage,  you can convert a portion of your home's equity into cash that you can use to pay off debts,  cover living expenses, o...
Comments 3
By Matt Brady, One of San Diego's Best Lenders
(Watermark Capital)
So CA rolled out a new First Time Homebuyer Program (FTHB) yesterday.It is a shared equity program. They will give you 20% down for your conventional loan as long as you use their 30yr mortgage for the loan.At some point in the future when you refinance or sell your home you pay back the 20% PLUS 20% of any appreciation in the home. You can never pay back more than 2.5 times the amount of the original loan.So if you buy a home for $500K they give you $100K and you use their $400K loan at 6.375% for 1.5 points.In the future, you want to refinance because rates have improved and the home is worth $700K.You must repay the $100K plus $40K of the $200K appreciation. You would have to wait until it was worth enough to stay at 80% LTV.The question is is it worth $40,000 of future funds to acce...
Comments 0
By Kimo Stowell, REALTOR Associate® 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 verifyWednesday, April 5, 2023  Lender Term/Type Interest Rate % Points % *APR Aloha Pacific Federal Credit Union808-531-3711NMLS#377314 15-YR Fixed 4.625 1.875 5.080 30-YR Fixed 5.250 2.000 5.535 5-YR ARM 4.375 0.625 4.521 American Savings Bank808-593-1226NMLS#423168 15-YR Fixed 4.625 1.875 5.028 30-YR Fixed 5.375 2.000 5.633 5-YR ARM 4.500 1.500 5.912 Bank of Hawaii877-616-2636 15-YR Fixed 4.875 2.250 5.221 30-YR Fixed 5.500 2.250 5.707 5-YR ARM 4.375 2.500 5.774 Central Pacific Bank808-544-0500NMLS#416603 15-YR Fixed 4.750 1.875 5.164 30-YR Fixed 5.375 1.875 5.626 5-YR ARM 5.750 0.000 6.917 Finance...
Comments 0
By Bob Elliot, 20+ Yrs Industry Experience
(eXp Realty)
If you're about to seek approval for a mortgage, you'll want to ensure you have a solid credit score and clean financial records to boost your likelihood of being approved. There are certain characteristics that lenders want to see in a mortgage applicant before they agree to give a loan, and you want to prove that you're a responsible borrower. But certain behaviors can easily tank your application and crush your home ownership dreams.Before you seek approval, make sure your finances are in order. Avoid these three mortgage-killing habits while your lender evaluates your loan and you'll quickly find yourself holding the keys to your new home.Using Up Most Of Your Available CreditIt can be tempting to start buying furniture when your mortgage is about to be approved, but you're better o...
Comments 2
By Bob Elliot, 20+ Yrs Industry Experience
(eXp Realty)
Last week’s financial and economic reporting included readings on sales of new and previously-owned homes, along with weekly data on mortgage rates and jobless claims.  Single-Family Home Sales Rise in FebruaryYear-over-year sales of previously owned homes rose 14.5 percent to a seasonally-adjusted pace of 4.58 million sales. Analysts expected 4.20 million sales of pre-owned homes as compared to January’s year-over-year reading of 4.0 million sales. February’s increased sales halted 12 months of falling sales of previously-owned homes. February’s reading marked the highest pace of sales since July 2020, when sales of pre-owned homes rose by 22.40 percent.The National Association of Realtors® said that February’s reading represented the largest increase in existing home sales since the i...
Comments 1
By Lise Howe, Assoc. Broker in DC, MD, VA and attorney in DC
(Keller Williams Capital Properties)
My daughter is under contract for a new condo in the Boston area.  She is learning a lot about getting a mortgage now and I am going through that process with her!  It is very personal now.  I am learning all over again that shopping for a mortgage can be overwhelming. Even if you’ve owned a few homes and have had a few home loans, chances are there are some mortgage options you don’t know about.Here are some points to remember: A 20 percent down payment isn’t a must. The long-held view that at least a 20 percent down payment is needed to buy a home is outdated.A loan approved by the Federal Housing Administration, or FHA, can have a minimum down payment of 3.5 percent. For a $300,000 home, instead of having to come up with $60,000 (20 percent) down, a 3.5 percent down payment requires ...
Comments 20
By Charles Stallions, 850-476-4494 - Pensacola, Pace or Gulf Breeze, Fl.
(Charles Stallions Real Estate Services )
At 6.14%, Weekly Mortgage Rates Hit Sept. Lows It’s down from last week’s 6.33%. Freddie Mac’s chief economist says it provides a “much-needed boost” for the housing market, but inventory is a concern. continued reading 5 Ways to Build a Credit Score in 2023 By Lauren Schwahn By taking charge of debt, first-time buyers could start 2023 unable to qualify for a mortgage and end the year celebrating the holidays in a new home. continued reading    FHA Loans Now Cost $117 Less Per Month By Kerry Smith FHA lowered its mortgage-insurance premium for borrowers by 30 basis points. The $117 monthly savings is based on a $467.7K home with 3.5% down. continued reading Mortgage Buydowns Return to Entice Buyers By Bailey Schulz Buyers offered a 2% mortgage rate discount their first year and 1% the ...
Comments 0
By Alberto Pacheco, Experience and Trust
(Home Smart Evergreen Realty)
Are you thinking about buying a home in the near future? If so, it’s time to get your finances in order. Here are the top questions to ask your mortgage lender.If you’re preparing to purchase but don’t have a mortgage broker or lender yet, don’t panic! Reach out for a referral to one of our trusted partners.📲 818 481 9211📧 albertopachecorealtor@gmail.com
Comments 2
By Melissa Thompson, I'm a real estate agent helping buyers and sellers
(Thompson Real Estate)
Money can be a difficult concept to understand. It’s not something we learn in school, but it has a massive impact on our lives. We need to understand how economics and personal finances intersect so that we can make better decisions when it comes to our money and our future.For financial stability and security, it's important to see how the economy affects your own finances. It allows us to plan for the future and make smart choices when it comes to budgeting and saving. Knowing how changes in the economy will affect our own finances helps us get ready for any problems that might come up."Connecting the Dots: Understanding the Intersection of Economic and Personal Finance" is a great book for people who want to learn more about their finances and make sure they are financially stable. ...
Comments 3
By Chris Dunham, The Real Estate Guy™
(Brokers Hub Realty)
FHA financing, all the information you need to know and then some.Being in this industry for over 20 years, 24 actually as I type this blog, I have used FHA Financing for probably 65-70% of all the home buyers I have worked with. On average, I close 40 plus transactions a year, and the bulk of those have been with first time home buyers. The FHA loan is the most popular government-backed home loan in the country. These low down payment loans are made by qualified lenders and guaranteed by the Federal Housing Administration (FHA).FHA loans require just a 3.5% down payment for borrowers with a 580 credit score or higher. For homebuyers with less-than-perfect credit, FHA loans offer additional significant benefits. The government backing means average FHA interest rates are typically lowe...
Comments 2
By Will Hamm, "Where There's a Will, There's a Way!"
(Hamm Homes)
Spring is the time for a fresh start. If that means buying a new home, your credit score is one of the most important numbers to watch. A good credit score only gives you a better chance of getting approved for the home you want. So before you start your home search, here are a few reminders you can do to give your credit score a boost. Repair Any Credit Bumps Before buying a home, you must know your credit score and fix any credit issues. Don't Be Late This is one of the easiest things you can do to help your credit boost. Make all of your payments on time. Avoid any late payments on your bills. Don't Add To Your Credit You shouldn't take out new credit if you're getting ready to buy a home. Instead, hold off on big purchases until after you close on your new home. Use Credit Tools Th...
Comments 1
By Charles Stallions, 850-476-4494 - Pensacola, Pace or Gulf Breeze, Fl.
(Charles Stallions Real Estate Services )
  Buyers offered a 2% mortgage rate discount their first year and 1% the second often hope they can refinance then and/or raises at work will make up the difference.   NEW YORK – Anna Raymond was ready to switch from renting to owning a home last spring. But after five failed offers, she and her husband decided to take a step back from house hunting. Then, in December, their real estate agent presented an offer too good to pass. A home in Longmont, Colo., was up for sale, and the seller was willing to offer a 2-1 interest rate buydown. The concession would lower the Raymonds’ 5.75% contract interest rate by 2% in the first year and 1% in the second year, so they’ll pay just 3.75% interest in the first year and 4.75% in the second year before returning to 5.75% in the third. Raymond sai...
Comments 0
By Joseph Lorenzo, Your Law And Order Realtor
(Frank Rubi Real Estate LLC)
I am not a loan officer, nor do I play one on TV, lol.  But as a realtor, I am often asked about the differing types of loans available to borrowers.    I work with several great lenders and when asked about loans by a client or potential client, I obtain some basic information and then refer them to the lenders I know and work with. (the stay in you lane rule).  However, as a professional realtor, I believe I should have a basic knowledge of the types of loans available.   Hence, this post.  Many of you know this information already.  If you don’t, here is some information that will be helpful  Hopefully, this post will increase your knowledge and help you to better serve your clients.     As we know, navigating the world of real estate loans can be a daunting task, especially for firs...
Comments 1
By Chris Goulart, California Hard Money Loans & Solutions
(All California Lending)
30 year fixed hard money loans for commercial properties can provide a number of benefits for investors and business owners. These loans, which are typically provided by private lenders and secured by real estate, can offer a more flexible and cost-effective alternative to traditional bank loans.One of the biggest benefits of the 30 year fixed hard money loans for commercial properties that we can assist with is that they do not require minimum debt service coverage ratio (DSCR) numbers at lower loan to value ratios. DSCR is a ratio used by banks and other financial institutions to assess a borrower's ability to repay a loan. A high DSCR is generally required for traditional bank loans, which can make it difficult for some borrowers to qualify. With our 30 year fixed hard money loan, th...
Comments 1
By Bob Elliot, 20+ Yrs Industry Experience
(eXp Realty)
One of the challenges you will face when deciding how much money to put down on your new home is whether to put down a larger down payment or to take a bit of money from your down payment and use it to buy "discount points" to lower your interest rate.There are pros and cons to doing both and each borrowers situation will be different so it's important to understand which option is best for your individual situation. Some factors you should consider include: Cost of borrowing - generally speaking, to lower your interest rate will mean you pay a premium. Most lenders will charge as much as one percent (one point) on the face amount of your loan to decrease your rate. Before you agree to pay points, you need to calculate the amount of money you are going to save monthly and then determine...
Comments 1
By Bob Elliot, 20+ Yrs Industry Experience
(eXp Realty)
If you plan on buying a house in the near future, there are a few mortgage options available. One potential option is called a VA loan. This is a loan that has been backed by the Department of Veterans Affairs, and it could provide you with some added flexibility that you can use to purchase a house. Is a VA loan right for you? There are a few points to keep in mind.  Who Qualifies For a VA Loan?First, not everyone is able to access a VA loan. This is a loan that is generally only available to active members of the US military, veterans of the US military, and surviving spouses of service members. There are different service requirements that you need to meet before you can qualify for a VA loan, so if you have questions about your service record, consider reaching out to an expert who ...
Comments 2
By Bob Elliot, 20+ Yrs Industry Experience
(eXp Realty)
Last week’s economic reporting included readings on housing starts and building permits issued, the National Association of Home Builders Housing Market Index, and Fed Chair Janet Yellen’s Senate testimony. The Commerce Department reported on housing starts and building permits issued published, and a monthly reading on consumer sentiment was published. Weekly reports on mortgage rates and jobless claims were also released. Two bank failures instill fear in depositorsIn the aftermath of two bank failures last week, US Treasury Secretary Janet Yellen said that “the banking system is sound” during testimony to the US Senate last Thursday. When asked if federal protection could be extended to deposit accounts exceeding $250,000, Secretary Yellen replied that such action would “require appr...
Comments 1
By Jim Lee, REALTOR Emeritus, Buying or Selling? Ann & Jim are the local experts
(RE/MAX Shoreline)
How recent financial events could lead to significant savings on your dream home?In the ever-changing world of finance and real estate, sometimes the unexpected can lead to new opportunities. The recent collapse of Silicon Valley Bank and a few other regional banks might seem awful, but it could present a golden opportunity for potential NH Seacoast homebuyers. Let’s delve into the backstory and explore how these events can benefit you.A Brief BackstoryA few years ago, in 2020 and 2021, banks saw a flood of new deposits due to stimulus money and increased savings during the pandemic. Banks invested in low-interest treasury bonds and mortgage-backed securities to make the most of this influx, locking in 1-2% returns for years. Fast forward to today, and the Federal Reserve has significan...
Comments 2
Back to Top