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 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 If you think mortgage rates are at an all-time high, you wouldn’t be alone. According to this NerdWallet article, 61% of Americans think they’re “unprecedented.” And you’re also not alone if you’re still planning on buying a home this year, despite that sentiment, considering 28 million people plan to do so according to their survey! The thing is, mortgage rates aren’t actually the highest they’ve ever been; not by a long shot. Those low rates buyers were getting over the past few years were historically unusual, and now they’re not just back to “normal”—even below normal—considering data from Freddie Mac shows that 30-year mortgage rates have averaged 7.75% over...
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By Tom Gilliam- RE/MAX Classic, Exceeding Your Expectations
(Re/Max Classic)
If you think mortgage rates are at an all-time high, you wouldn’t be alone. According to this NerdWallet article, 61% of Americans think they’re “unprecedented.” And you’re also not alone if you’re still planning on buying a home this year, despite that sentiment, considering 28 million people plan to do so according to their survey!The thing is, mortgage rates aren’t actually the highest they’ve ever been; not by a long shot. Those low rates buyers were getting over the past few years were historically unusual, and now they’re not just back to “normal”—even below normal—considering data from Freddie Mac shows that 30-year mortgage rates have averaged 7.75% over the last 50 years.When rates were unusually low, it almost didn’t matter if you weren’t careful about the type of loan or term...
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By Brian Madigan, LL.B., Broker
(RE/MAX West Realty Inc., Brokerage (Toronto))
Commercial Bond Yields CMB 5 Year - 3.26%*EST. CANHOU 06/15/28 [+0.10%]   ‌ 10 Year - 3.38%*EST. CANHOU 06/15/33 [+0.06%]         * denotes interpolated rate GoC 5 Year - 3.01% CAN 09/01/27 [+0.10%]   ‌ 10 Year - 2.88% CAN 06/01/32 [+0.07%]   ‌ 15 Year - 3.01%* Est. 12/01/36 [+0.05%]   ‌ 20 Year - 3.02%* Est. 12/01/41 [+0.05%] GOC Bonds are for reference purposes only Floating rate insured cost of funds 4.54% [-]                   Prime Rate 6.70% [-]      
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By Jason E. Gordon, Sr Loan Officer, CMA, CMPS, CDLP, CDRE, RCSD, CDPE
(AmeriFirst Financial Inc, San Diego, CA)
What are some of the psychological impacts of a Divorcing Couple dealing with the marital home? In this interview, Dr. Sue Cornbluth, Clinical Psychologist interviews Certified Divorce Lending Professional (CDLP) and Certified Divorce Real Estate Expert (CDRE) Jason Gordon to discuss the need to properly craft a realistic plan between the divorcing parties...especially when it comes to the disposition of the marital home.This video is especially useful for Divorcing Homeowners, Divorce Attorneys, as well as any other Professionals enrolled in the divorce process along the way. The bottom line is that Divorcing Homeowners & Divorce Attorneys have strong resources available to bring in early in the divorce proceedings. Proper use of these resources will insure that legally binding court d...
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By Karen Schimpf, When Your Bank Says No, I CAN Get Your Deal CLOSE
(Commercial Capital Ltd.)
https://flic.kr/p/oA99EeRates have gone up but not as quickly as residential rates and businesses are still expanding as you will see in the loans below…$2.4 Million Purchase of a Sushi/Hibachi Company-Business OnlyLocation: FLThis was a 34-year-old successful restaurant/bar whose founder was retiring and wanted to sell it to his long-time managers. A business-only transaction, no real estate, we rolled in $200,000 of working capital. The borrowers put down 10% or $260,000 and got $200,000 BACK! So a net of only $60,000 to buy the restaurant they have been running for 30 years. It’s just a beautiful story and I see these deals all the time. Next week we are closing a bar/restaurant for $3.4 Million in GA, the same thing…the long-time manager is buying it from the founder. These legacy-t...
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By Robert Rauf
(HomeBridge Financial Services (NJ))
LLPAs/Add-ons Significant increases!For Conventional Mortgages there have been Loan Level Price adjustments since 2008. Simply put- not everyone gets the same rate with these adjustors adding price for risk.While there has always been some minor adjustments to the LLPAs each year this is the biggest change since the advent of LLPAs. We will start seeing these changes on rate sheets in the next few weeks for 60 day locks... Here are some of the highlights:The negative side: Ever since we had LLPAs 740 was the magic number for credit scores. This will be a significant change with 2 new credit buckets 760+ and 780+  So the new magic number for Credit score is 780. There are higher add-ons for most loans with credit scores between 680-779 Refinances will be significantly more expensive VS a...
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By David Krichmar, DaveYourMortgageGuy.com
(www.DaveYourMortgageGuy.com - Legend Lending)
Conventional 30 year Mortgage: 5.75%Credit score:740LTV:75%Loan Amount: $300kAPR: 6.295%FHA 30 year: 5.5% Credit Score:740LTV:96.5%loan amount: $300kAPR: 6.415%Conventional 15 year: 5%Credit score:740LTV:75%Loan Amount: $300kAPR: 5.085%Rates are Subject to ChangeCall me today if you are thinking of refinancing or buying a home, for the best mortgage rate possible.   
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By Theresa Hus, The Official Real Estate Agent Directory
(RealEstateAgent.com)
While searching for your dream house, you may face some challenges that make your dream seem untouchable. It could be a bad credit score, a low income, or the ordeal of going through the conventional lending process. There might be several reasons, but there’s a silver lining for those who face these issues. A viable alternative might be owner financing. Are you wondering how does owner financing work and if it’s a good option for you? Known also as seller financing it’s a transaction in which a property’s seller finances the sale directly with the buyer, either entirely or in part. It is beneficial for both parties because it eliminates the costs of a bank intermediary. Although it might seem like a perfect scenario, it has its drawbacks.In 2010, the Dodd-Frank Act was signed into law ...
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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 A rehab mortgage is a type of mortgage that allows buyers to purchase and renovate a property in one transaction. It is also known as a renovation mortgage and can be a great option for those looking to purchase properties that require repairs or upgrades.  However, before deciding to get this mortgage, it is important to weigh the pros and cons to determine if it is the right choice for you. To help you decide whether or not a rehab mortgage is right for you, below we'll examine the advantages and disadvantages of this financing option. Photo by Blake Wheeler on Unsplash Advantages of a Rehab Mortgage Getting a rehab loan means you can buy and fix up a house all...
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By Melissa Thompson, I'm a real estate agent helping buyers and sellers
(Thompson Real Estate)
A rehab mortgage is a type of mortgage that allows buyers to purchase and renovate a property in one transaction. It is also known as a renovation mortgage and can be a great option for those looking to purchase properties that require repairs or upgrades. However, before deciding to get this mortgage, it is important to weigh the pros and cons to determine if it is the right choice for you. To help you decide whether or not a rehab mortgage is right for you, below we'll examine the advantages and disadvantages of this financing option.Photo by Blake Wheeler on UnsplashAdvantages of a Rehab MortgageGetting a rehab loan means you can buy and fix up a house all in one easy payment. This can be a huge advantage for buyers who are looking to purchase a property that needs work but may not h...
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By Matt Brady, One of San Diego's Best Lenders
(Watermark Capital)
We made it through the first month of 2023! Last week gave us some contradicting data. The US manufacturing services and goods PMI (Purchasing Managers' Index) came in higher than expected (which is good!) but still lower than 50, which shows a contracting economy. Both were higher than last month, so that is promising moving forward.Initial jobless claims were lower, proving the labor market is still strong. New home sales came in slightly higher than expectations and pending home sales jumped to the upside. PCE (Personal consumption expenditures) also came in at expectations.I interpret the data as weak but improving. The pending home sales don’t surprise me as rates have come down 1.5%-2% since their October highs and we are out of the holiday season.This week is a very big week wit...
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By David Williams, Industry Leading Mortgage Lender for over 30 years
(Right Start Mortgage, Inc.)
If you have lackluster income and credit history making it difficult to qualify for standard mortgage loan programs, don't give up your dream of owning a home quite yet. A non-qualified mortgage loan (non-QM) may be just the solution you're looking for. But, do you know what a non-QM mortgage loan is? If not, no worries, we'll tell you everything you need to know.The best way to understand a non-QM loan is first to find out what it isn't. We'll explain. To qualify for a conventional mortgage, applicants must meet two primary requirements. Income: You must be able to prove your income with W-2s, pay stubs, and tax returns. Debt: Generally, your debt-to-income ratio must be no higher than 43 percent. A non-QM loan may be your best bet if you can't meet these requirements. Why? Non-QM lend...
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By Brian Madigan, LL.B., Broker
(RE/MAX West Realty Inc., Brokerage (Toronto))
Commercial Bond Yields CMB 5 Year - 3.26%*EST. CANHOU 06/15/28 [+0.07%]   ‌ 10 Year - 3.41%*EST. CANHOU 06/15/33 [+0.06%]         * denotes interpolated rate GoC 5 Year - 3.00% CAN 09/01/27 [+0.06%]   ‌ 10 Year - 2.90% CAN 06/01/32 [+0.05%]   ‌ 15 Year - 3.03%* Est. 12/01/36 [+0.04%]   ‌ 20 Year - 3.03%* Est. 12/01/41 [+0.03%] GOC Bonds are for reference purposes only Floating rate insured cost of funds 4.54% [-]                   Prime Rate 6.70% [-]    
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By David Krichmar, DaveYourMortgageGuy.com
(www.DaveYourMortgageGuy.com - Legend Lending)
Conventional 30 year Mortgage: 5.75%Credit score:740LTV:75%Loan Amount: $300kAPR: 6.295%FHA 30 year: 5.5% Credit Score:740LTV:96.5%loan amount: $300kAPR: 6.415%Conventional 15 year: 5%Credit score:740LTV:75%Loan Amount: $300kAPR: 5.085%Rates are Subject to ChangeCall me today if you are thinking of refinancing or buying a home, for the best mortgage rate possible.
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By David Williams, Industry Leading Mortgage Lender for over 30 years
(Right Start Mortgage, Inc.)
After a two-year buying frenzy, rising interest rates, inflation, and uncertainty about the economy's future have planted many prospective homebuyers firmly on the sidelines. Will interest rates continue to climb, level out, or return to the unprecedented lows we saw at the height of the pandemic?We hear this question frequently, and experience tells us that the best way to answer it is by analyzing current real estate trends that will impact the housing market. Here’s what we’re seeing.The Market Will Remain SlowOver the last two years, home sales surged at a rate we haven't seen since 2006. To put that into perspective, 6.1 million housing transactions occurred in 2021 alone. Compare that to 5.95 million home sales in 2022. So what do we expect in 2023?Homes will stay on the market lo...
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By Bradford Simmons, CPA providing tax debt resolution services
(Ocean Consulting Services LLC)
For this post I’m veering from the tax collection area into an issue of tax avoidance. Although this commentary relates to “Trump” it is in no way a political commentary. My comments are solely related to recent events relating to the Trump Organization.As reported in an article by Vice (11/1/22) a trial involving the Trump Organization recently kicked off. The article describes the court proceeding as relating to “channeling off-the-books benefits to senior executives to avoid taxes”. Other articles have described the situation as a mishandling of the reporting of fringe benefits. Some commentators have questioned the government’s interest in pursuing a tax case “just” related to the reporting of fringe benefits.I’d like to dispel this notion. This is not case solely related to the rep...
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By Bradford Simmons, CPA providing tax debt resolution services
(Ocean Consulting Services LLC)
You’ve run up a tax debt - either through filing a tax return with a balance due or if the IRS computes a balance due - through the Substitute For Return procedure. As mentioned in a previous discussion once this happens the IRS is automatically granted a lien on all of your property.OK but what if you have other debts that may be secured by property - for example a home with an outstanding loan, a car with related unpaid debt, etc. Does the IRS automatically “jump ahead” of others with claims on your assets? They do not - the IRS is not granted any extraordinary rights relating to your property. They may acquire a lien against all your property but they are behind existing liens.A lien represents a claim against an asset. Borrowing in connection with buying a home or a car usually invo...
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By Bradford Simmons, CPA providing tax debt resolution services
(Ocean Consulting Services LLC)
OK, OK I know I owe the IRS money for my taxes - can they come after me forever? The short answer is no - the IRS generally has ten years to attempt to collect the debt.Many laws contain a “statute of limitations” (SOL) - a period of time set out for action. For example in Massachusetts the law relating to contracts typically requires a claim to be brought within six years of when a contract was broken. The concept is that laws should be designed to facilitate resolution within a “reasonable” amount of time.Under the tax law there is a ten year period to collect a tax - the SOL. After this period the debt is no longer enforceable. While this concept appears straightforward a number of issues can arise - for example: when does the period begin, are there any events that can extend the ti...
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By Bradford Simmons, CPA providing tax debt resolution services
(Ocean Consulting Services LLC)
OK I know I should have filed a tax return - but life got in the way…. Now the IRS has told me they prepared a “substitute for return” - what does this mean!The US tax system is referred to as a “voluntary” tax system - I know, hold the jokes. This means each person is tasked with determining if they have a tax return filing obligation, and - if so - they “voluntarily” prepare and file an annual tax return.But the IRS does not maintain a list of all people in the country and monitor whether or not a tax return is required and filed. That’s not to say the IRS solely relies on individuals to ensure compliance with the rules.The responsibility of the IRS is to ensure compliance with the tax law - the filing of tax returns and the payment of tax obligations. The IRS uses a number of tools t...
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By Bradford Simmons, CPA providing tax debt resolution services
(Ocean Consulting Services LLC)
So I owe taxes to the IRS and to Massachusetts. I provided a bunch of information to the IRS and they agreed to lower my tax debt through their Offer In Compromise program. I know that the IRS and MA share tax information. Does this mean MA will just settle my debt for less than I owe? Nope - these are two completely separate government operations. Settling a debt with one has no impact on a debt with the other group.That being said many states do have debt settlement programs similar to those offered by the IRS. The most common of these being Installment Agreements (IA) and Offers In Compromise (OIC). While many of concepts are similar between the agencies (i.e. Reasonable Collection Potential, Statute of Limitations, etc) the programs each have their own rules and require separate app...
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