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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 Bill Salvatore - East Valley, Realtor - 602-999-0952 / em: golfArizona@cox.net
(Arizona Elite Properties )
With the current talk about interest rates dropping refinancing a mortgage can be a smart financial move, but the timing and circumstances need to be right. Here’s a breakdown of the best time to refinance, things to consider, and how your home equity impacts the process: Best Time to Refinance: Lower Interest Rates: If mortgage rates have dropped significantly since you took out your loan, refinancing could help lower your monthly payments and overall interest costs. Improved Credit Score: If your credit score has improved since you first took out your mortgage, you may qualify for better rates, making refinancing worthwhile. Change in Loan Terms: You might want to shorten your loan term (e.g., from a 30-year to a 15-year mortgage) to pay off your home faster or extend the term to low...
Comments 2
By Nick Vandekar, 610-203-4543, Selling the Main Line & Chester County
(Realty ONE Group Advocates 484-237-2055)
With the current talk about interest rates dropping refinancing a mortgage can be a smart financial move, but the timing and circumstances need to be right. Here’s a breakdown of the best time to refinance, things to consider, and how your home equity impacts the process:Best Time to Refinance: Lower Interest Rates: If mortgage rates have dropped significantly since you took out your loan, refinancing could help lower your monthly payments and overall interest costs. Improved Credit Score: If your credit score has improved since you first took out your mortgage, you may qualify for better rates, making refinancing worthwhile. Change in Loan Terms: You might want to shorten your loan term (e.g., from a 30-year to a 15-year mortgage) to pay off your home faster or extend the term to lower...
Comments 22
By Carmine Rauso & Debbie Rauso, Professional REALTORS® and Real Estate Investors
(Keller Williams Main Line)
The Federal Reserve is schedule to meet today and a highly anticipated rate cut may be announed as early as this afternoon. The Fed's decisions on interest rates are closely watched by homeowners, buyers, and the real estate industry alike. When the Fed cuts rates, it often leads to lower borrowing costs for consumers, which can significantly affect monthly mortgage payments. For anyone in the market for a home or thinking of refinancing, understanding how even a small change in interest rates can impact your finances is critical.Let’s break down how a Fed rate cut could affect the monthly mortgage payment on a $600,000 home loan. How Rate Cuts Affect MortgagesWhen the Fed lowers interest rates, it generally leads to a decrease in mortgage rates, though not always immediately. Lower mor...
Comments 3
By Dwayne Briscoe, Tax Resolution & QuickBooks Bookkeeping Specialis
(BOOKKEEPING-RESULTS, LLC)
Whether it's just one room or an entire building, owners choose to rent a property to their own business to make it easier to find a way to generate income and to deduct expenses for their business. Unfortunately, failure to follow proper rules and procedures can cause challenges should these come up on an IRS audit.The rental activity is no longer classified as passive income, the rental cannot be offset by passive income for which you may receive a K-1 for activities that you DO NOT materially participate in. If you had received shareholder investments to activities that you didn't actively work for that were counted as losses, then you do not get to post it against your rental income because you own the property you are renting to your business. If you legal spouse owns the rental pr...
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By Dwayne Briscoe, Tax Resolution & QuickBooks Bookkeeping Specialis
(BOOKKEEPING-RESULTS, LLC)
Several discussions come around the 1031 Exchange to avoid paying capital gains taxes, however this is a bit of a “hamster wheel” people get on and fail to see the “end game.”The general rules for 2024 are as follows:Property is of the same nature or character, even if they differ in grade or quality but are for the same purpose.The taxpayers must be the same, such as a tax group, individuals, etc. and no differentiation is acceptable for it to continue its validity. If at any time it is changed, then the 1031 Exchange it is considered void with the IRS.This is for investment or business property. Builders who categorize homes as inventory to be sold cannot utilize this option. When the property is posted as a separate entity on a tax return, then it can fall under the 1031 Exchange.The...
Comments 2
By Bob Elliot, 30+ Yrs Industry Experience
(eXp Realty)
The week for the Federal Reserve’s rate decision has finally come. This is the week everyone has been waiting which will decide whether we will see any rate cuts this year. There has been a lot of speculation that this will be the first rate cut and likely more in the future. With the Federal Reserve giving hints the data has been on track, the outcome of one seems very likely. With the previous week's CPI and PPI statistics coming in, which both were slightly warmer than expected, the data still largely shows that inflation has been kept under control. This may affect the decision, but ultimately throughout the year, the data has been consistent with few surprises. The week rounded out with the Consumer Sentiment data reports showing favorable results, indicating that the current state...
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By Frank Garay, Daily News, Listings, New Construction & Education
(Real Estate Daily Magazine)
VA mortgage rates have dropped below 6% over the past several weeks, making now an excellent time for veterans to take advantage of refinancing options. As a Navy Veteran with over 37 years of experience helping veterans with their home financing, I’ve seen firsthand how much money can be saved through a VA streamline refinance (IRRRL) or a VA cash-out refinance.Just recently, I quoted a VA borrower a 30-year fixed rate of 5.5%, with an APR of only 5.545%. If your current VA loan interest rate is 6.0% or higher, this could be the perfect time to lock in a lower rate and reduce your monthly payment.Why Refinance Now? VA Rates Drop Below 6%!With VA rates dropping below 6%, a VA streamline refinance (IRRRL) offers several benefits: Lower Monthly Payments: Reducing your rate can significant...
Comments 8
By Moshon Reuveni
(Private Lending Company)
Credit Score Affects Rate and Terms of Mortgage LoansWhen it comes to securing a mortgage, your credit score plays a critical role in determining not just whether you qualify for a loan but also the interest rates and terms you’ll receive. Understanding how different credit scores affect your mortgage options can empower you to make informed financial decisions.What is a Credit Score?A credit score is a three-digit number that reflects your creditworthiness based on your credit history. Ranging from 300 to 850, higher scores typically indicate lower risk to lenders, which can lead to better loan terms and interest rates. Let’s explore how different credit score ranges affect mortgage financing.Excellent Credit: 808 ScoreYou fall into the excellent category if you have a credit score of ...
Comments 2
By Dick Betts, REALTOR® The Villages, Florida
(TOUCHSTONE REAL ESTATE)
When it comes to buying a home we deal with all kinds of buyers, cash buyers, 20% down up to 50% down I have had and there is another way.  It is called a HECM and when I start explaining the type of loan I ask people to let me explain before you say no.  HECM is a Home Equity Conversion Mortgage, and it might be right for you.  There are two requirements borrowers must be 62 years old or older and must meet financial guidelines set by HUD, Department of Housing and Urban Development.  The other is the borrowers need to make significant down payment; this is where I want you to keep reading.  It is a reverse mortgage and will cover the rest, requiring no monthly mortgage payments.Terms of the loan after you purchase the home you are required to pay property taxes, insurance, utilities a...
Comments 6
By Dwayne Briscoe, Tax Resolution & QuickBooks Bookkeeping Specialis
(BOOKKEEPING-RESULTS, LLC)
Rental DefinitionThere are six exceptions to the definition of rental. Under Reg. §1.469- 1T(e)(3)(ii), six types of activities normally defined as rentals, are treated as non-rental activities, i.e., as businesses, in most cases. The active participation standard and the $25,000 allowance do not apply. If the activity falls outside the rental definition, it is passive or non-passive based on if the taxpayer materially participates with six exceptions.The average period of customer use is 7 days or less. Examples: condo rentals, short-term use of hotel/motel rooms, and businesses that rent videos/tuxedos, cars/tools, etc.The average period of customer use is 30 days or less and significant personal services are provided with rental. Examples: hotels and motels.Extraordinary personal ser...
Comments 4
By Dwayne Briscoe, Tax Resolution & QuickBooks Bookkeeping Specialis
(BOOKKEEPING-RESULTS, LLC)
Often homeowners either choose to downsize or potentially move in with their children or retirement communities but want to convert their primary residences into rental properties as a regular source of income. Therefore, there needs to be documentation set up for the transference. If you used and owned the property as your principal residence for 2 years out of a 5-year period ending on the date of sale, you have met the ownership and use tests for the exclusion. This is true even though the property was used as rental property for the 3 years before the date of the sale. You would qualify to exclude some or all the gain on the sale of your home if you didn't use the exclusion on the sale of another residence during the 2-year period that ends on the date of sale or if you used the exc...
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By Laura Sellers, www.AuburnOpelikaALRealEstate.com
(Berkshire Hathaway HomeServices Preferred Real Estate, Inc.; www.AuburnOpelikaALRealEstate.com)
SmartBank Ribbon Cutting Ceremony in Auburn, ALToday, I had the pleasure of attending the ribbon-cutting ceremony for SmartBank in Auburn, AL!  SmartBank is committed to delivering exceptional banking solutions, including checking, savings, investing, and planning services to help you meet your financial goals. Their mission to serve the community aligns perfectly with my dedication as a top realtor to stay informed about all things Auburn and support local businesses. Whether you’re looking to buy or sell a property in Auburn, I’m here to guide you every step of the way. With my deep knowledge of the local market and commitment to exceptional service, let’s achieve your real estate goals together! Ready to make your next move in Auburn? Let’s make it happen with confidence and local ex...
Comments 2
By Dwayne Briscoe, Tax Resolution & QuickBooks Bookkeeping Specialis
(BOOKKEEPING-RESULTS, LLC)
Non Real Estate Professionals are those who are deemed to NOT have an IRS professional tax status spending over 50% of their total hours during the calendar year providing services in the business. This would account for a minimum of 1,040 hours or 26 weeks of a 40-hour week, out of a 52-week year. Defining the 500 Hours Rule IRS Regulation 469 allows taxpayers to group entities or rentals to form an appropriate economic unit for the measurement of gain or loss. However, businesses may not be grouped with rentals.  Land or buildings held for rentals may not be grouped. No personal activity or portfolio rental activity belongs in the grouping. It is possible that several different rental activities may exist within a single entity. As an example, two unrelated businesses or a business an...
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By Moshon Reuveni
(Private Lending Company)
5 Outstanding Lenders of the MonthIn today’s financial landscape, choosing the right lender can significantly impact your financial well-being. Whether you’re looking for a home loan, personal loan, or business financing, finding a trustworthy and efficient lender is crucial. Here, we highlight five outstanding lenders of the month, each known for their excellent service and positive contributions to the community. Barri BoothBarri Booth has recently made headlines for its commitment to providing tailored financial solutions to clients in Houston. With a focus on customer service, Barri Booth offers a range of loan products designed to meet diverse needs, from personal loans to mortgages.In a recent customer satisfaction survey, Barri Booth received high marks for its responsiveness and...
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By Moshon Reuveni
(Private Lending Company)
Discover Covey Financial: Your Trusted Partner in Financial SolutionsIn today’s fast-paced financial landscape, finding a reliable partner to guide you through your financial journey is essential. Covey Financial stands out as a leading financial service provider dedicated to helping clients achieve their financial goals through tailored solutions and exceptional customer service.Who is Covey Financial?Covey Financial is recognized for its commitment to delivering comprehensive financial services, including mortgage solutions, investment advice, and personalized financial planning. With a team of experienced professionals, Covey Financial ensures that each client receives the attention and expertise necessary to navigate their unique financial situations.Latest Positive News About Covey...
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By Dwayne Briscoe, Tax Resolution & QuickBooks Bookkeeping Specialis
(BOOKKEEPING-RESULTS, LLC)
From The StartWe include but are not limited to the following items starting cost but not limited to:- Purchase price- Closing costs- Title fees- Legal fees- Recording fees- Title insurance- Taxes- Surveys- Utility service fees- Mortgage fees- Sales commissions- Improvement charges or repairs Gifted Property Rental and Capital Gains TaxIn the event of a “gifted” property becomes a rental property, the owner of said property must live in it order to be eligible for the capital gains tax exclusion for a minimum of 2 years or a maximum of 5 years, although the 2 years doesn’t need to be consecutive. For a single filer the first $250,000 in gain and for a married couple filing the first $500,000 from the sale is excluded from taxable income. The person gifting the property will not be requi...
Comments 1
By Dick Betts, REALTOR® The Villages, Florida
(TOUCHSTONE REAL ESTATE)
I’m not a lender but I have worked with many buyers looking for a mortgage and want to share a few things.  Some of these I have learned the hard way working with clients through the process of getting a mortgage.  First Florida doesn’t accept legal separations from other states and doesn’t formally recognize a “legal separation” in the state.  Ok what does that mean? Some couples agree to move on with their life separately due to retirement and VA benefits and other reasons and not get a divorce.  Maybe in the state they live they can get a legal separation but here being a Homestead State plus getting a mortgage makes it very complicated.  It could be costly to the buyer as the property can’t be Homesteaded which cost more in property taxes.Next you have a Gazillion dollars but don’t ...
Comments 6
By Dwayne Briscoe, Tax Resolution & QuickBooks Bookkeeping Specialis
(BOOKKEEPING-RESULTS, LLC)
Since nearly 70% of applicants are rejected for the Offer In Compromise program at any given time, it's not unusual to possibly get rejected for a variety of reasons. Unfortunately, you MUST submit your appeal within 30 days of the date of the notice of rejection, NOT the date you received it. Therefore, you must be aware that you may have as little as 2 or 3 weeks that you have to prepare for appeal or you must start the entire process from scratch and the IRS Office of Appeals will not consider your current application.Upon Failure to Receive an OfferThe full tax liability goes back to the original amount, with no interest and penalties recalculated. Failure to file an appeal in a timely manner will result in the full tax liability binding and the Offer In Compromise application close...
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By Bob Elliot, 30+ Yrs Industry Experience
(eXp Realty)
This week, the most important release of the year regarding inflation data will occur. Once again the CPI and PPI take the front stage clearing the way for rate cuts made by the Federal Reserves. Based on several indicators, there is strong confidence that if the upcoming inflation data meets expectations, we could see interest rate cuts before the year ends. In addition to the inflation data, the Consumer Credit reports will be released early this week. Both lending partners and the broader market have high expectations for these reports.The previous week's employment data also had a lot of positive things to say, with wages growing faster than inflation. The overall economic outlook has been positive.U.S. Trade DeficitThe U.S. international trade deficit widened 7.9% in July to $78.8 ...
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By Charles Stallions, 850-476-4494 - Pensacola, Pace or Gulf Breeze, Fl.
(Charles Stallions Real Estate Services )
Borrowing costs fell ahead of the Federal Reserve’s anticipated rate cut next week. But economists say home buyers may not want to wait to see if rates go lower.The 30-year fixed-rate mortgage fell to 6.2% this week, down significantly from a year ago, when it surged above 7%. But some prospective home buyers are holding out for even lower rates in anticipation of the Federal Reserve’s meeting next week, when it’s expected to cut short-term interest rates.Still, home buyers may be getting their hopes up too much: “Even with the September expected rate cut [by the Fed], mortgage interest rates are not likely to move as this cut has been baked into the mortgage market,” says Jessica Lautz, deputy chief economist of the National Association of REALTORS®.Instead, prospective buyers may want...
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