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 Joseph Lorenzo, Your Law And Order Realtor
(Frank Rubi Real Estate LLC)
In our series "Real Estate Terms You Should Know," today we are going to talk about what is meant by the term "principal." This financial term is fundamental in the context of mortgages and real estate financing, playing a crucial role in every homebuyer's journey.The principal is the original sum of money borrowed in a loan or the remaining balance of the loan, excluding interest. In other words, it's the core amount that you owe to the lender before any interest is added. When you make a mortgage payment, a portion of that payment is applied to reduce the principal, and the rest covers the interest charged by the lender.Understanding how the principal works is important for several reasons. Firstly, it affects your monthly payments; as you pay down the principal, the interest portion ...
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By Joseph Lorenzo, Your Law And Order Realtor
(Frank Rubi Real Estate LLC)
In our series "Real Estate Terms You Should Know," today we are going to learn what is meant by "pre-approval." This term is essential for buyers in the real estate market, as it significantly impacts the home buying process.Pre-approval is a lender's conditional agreement to lend you a specific amount of money for the purchase of real estate, based on a preliminary review of your creditworthiness and financial situation. To get pre-approved, you will need to provide your lender with some financial information, including your income, assets, debts, and credit score. The lender will then use this information to determine how much money they are willing to lend you, what interest rate they will charge, and what the terms of the loan will be.Getting pre-approved is a crucial step for poten...
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By Bob Elliot, 30+ Yrs Industry Experience
(eXp Realty)
Those who are involved in the real estate industry likely know that mortgage rates are at an all-time low. At the same time, nobody wants to pay more for a house than they have to. Some of the most important factors that dictate how much someone is going to pay for a house include points and interest rates.While interest rates are incredibly low, there is a way to make them lower. This comes in the form of points. This is additional money that is paid upfront to get a better deal over the life of the loan. Even though this sounds great in theory this might not be the best option for everyone. There are a few important points to keep in mind.What Are Points?Often, the lender is going to offer someone the option of paying points when the mortgage is created. This should be viewed as payin...
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By Jonathan Hall, Realtor - Danbury,CT Area Real Estate~203-417-0523
(William Pitt Sotheby's International Realty)
Something that has been used in the last few years is an appraisal gap. Typically, prior to the pandemic, is most buyers seeking a mortgage would include an appraisal contingency.  For example, if the contracted price between the buyer and seller is $500,000, and the buyers lender sends out the appraiser who values the property at $475,000. That would give the buyer the option to renegotiate the deal to the $475,000 or walk way from the transaction, as the buyer may feel they are overpaying for the property.However, it has been a home sellers market in almost all price ranges since 2020. Buyers sometimes have to get creative get a home if they are competing. One thing is the appraisal gap. This means for example, if the seller and buyer agree to a contract price of $550,000, and the buy...
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By Legal Info, Here For Your Legal Needs
Life can be unpredictable, and sometimes, unforeseen circumstances can throw us into financial turmoil. Imagine this: you've suffered a debilitating injury that not only affects your physical health but also puts a strain on your finances. Medical bills pile up, and you find yourself unable to work, jeopardizing your ability to keep up with mortgage payments. The threat of foreclosure looms over you, adding stress to an already challenging situation.How a Personal Injury Case Can HelpWhen facing the aftermath of an injury, it's essential to explore all available options to mitigate the financial impact. A personal injury case arises when someone suffers harm due to the negligence or wrongful actions of another party. In situations where the injury results in significant medical expenses...
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By Charles Stallions, 850-476-4494 - Pensacola, Pace or Gulf Breeze, Fl.
(Charles Stallions Real Estate Services )
Welcome to the MY Take, where 28-year veteran realtor Charles Stallions CBR, CRS of Pensacola, Pace, and Gulf Breeze, Florida, will bring you the rates and insight into the mortgage industry.Unlocking the Real Estate Potential of Pensacola, Pace, and Gulf Breeze, Florida: Insights from Charles StallionsAs a seasoned real estate expert with years of experience in the vibrant markets of Pensacola, Pace, and Gulf Breeze, Florida, Charles Stallions has witnessed firsthand the dynamic evolution of these communities. From the sandy shores of Pensacola Beach to the quaint neighborhoods of Pace and the waterfront estates of Gulf Breeze, each locale offers unique opportunities for buyers, sellers, and investors alike.Pensacola, dating back centuries, has emerged as a hub of cultural diversity an...
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By Joseph Lorenzo, Your Law And Order Realtor
(Frank Rubi Real Estate LLC)
In our series "Real Estate Terms You Should Know," today we are going to talk about Mortgage insurance. This is a crucial term to understand, especially for those entering the home-buying process.Mortgage insurance is a policy that protects lenders from losses due to the default of a mortgage loan. Typically, it is required when homebuyers make a down payment of less than 20% of the home's purchase price. Mortgage insurance can be either private (PMI) for conventional loans or government-backed, like those provided by the Federal Housing Administration (FHA).The purpose of this insurance is to reduce the risk for lenders, enabling them to offer loans to more borrowers. For buyers, it means being able to purchase a home without needing a 20% down payment. However, it does increase the ov...
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By Joseph Lorenzo, Your Law And Order Realtor
(Frank Rubi Real Estate LLC)
In our series "Real Estate Terms You Should Know," today we are going to talk about mortgage brokers. This role is critical in the real estate financing process, acting as a bridge between borrowers and lenders.A mortgage broker is a licensed professional who acts as an intermediary between individuals seeking a mortgage and potential lenders. Their primary job is to work on your behalf with several banks to find lenders with competitive interest rates that best fit your needs. Mortgage brokers have a well-developed stable of lenders they work with, which can make your life easier.Mortgage brokers are different from loan officers, who are employees of a lender and are paid a set salary for originating loans. Brokers, on the other hand, are paid a fee by the borrower or the lender when a...
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By Christopher Robson
(Educators Realty)
Introduction to Reverse MortgagesFull article on our webpage found here.The article introduces reverse mortgages as a financial solution for homeowners aged 62 or older who have substantial equity in their homes and seek financial flexibility without leaving their residences. In a reverse mortgage, instead of making monthly payments, eligible homeowners receive payments from the lender, converting a portion of their home equity into cash. The Home Equity Conversion Mortgage (HECM), insured by the Federal Housing Administration (FHA), is the most common type of reverse mortgage. Repayment is typically deferred until the homeowner sells the home, permanently moves out, or passes away, with the loan repaid through the sale of the home, ensuring that the borrower or their heirs won't owe mo...
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By Joseph Lorenzo, Your Law And Order Realtor
(Frank Rubi Real Estate LLC)
In our series "Real Estate Terms You Should Know," today we are going to talk about Mortgages. This term is a cornerstone in the world of real estate, playing a vital role in the homeownership journey.A mortgage is a type of loan specifically used to purchase real estate. In this arrangement, the buyer borrows money from a lender, usually a bank or a mortgage company, to buy a home or other property. The property itself serves as collateral for the loan. This means if the borrower fails to make the agreed-upon payments, the lender has the right to take possession of the property, a process known as foreclosure.There are various types of mortgages available, each with its own set of terms, conditions, and interest rates. These include fixed-rate mortgages, where the interest rate remains...
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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, January 31, 2024  Lender Term/Type Interest Rate % Points % *APR American Savings Bank808-593-1226NMLS#423168 15-YR Fixed 5.250 1.875 5.667 30-YR Fixed 5.875 2.125 6.156 5-YR ARM 5.625 1.750 7.042 Bank of Hawaii877-616-2636 15-YR Fixed 5.750 1.000 5.906 30-YR Fixed 5.875 2.000 6.063 5-YR ARM 5.875 1.000 7.099 Central Pacific Bank808-544-0500NMLS#416603 15-YR Fixed 5.250 2.125 5.715 30-YR Fixed 5.875 1.750 6.125 5-YR ARM 6.875 0.000 7.747 Finance Factors808-548-3300NMLS#449916 15-YR Fixed 5.125 2.000 5.656 30-YR Fixed 5.875 1.875 6.191 5-YR ARM 6.250 1.500 7.459 First Hawaiian Bank808-...
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By Bob Elliot, 30+ Yrs Industry Experience
(eXp Realty)
Rate locks play a crucial role in the mortgage application process, helping borrowers secure a favorable interest rate for their home loans. Here's an explanation of the importance of rate locks and when and how to secure the best rate:Interest Rate Protection: Mortgage rates are subject to market fluctuations and can change daily or even multiple times a day. Rate locks protect borrowers from potential rate increases during the loan processing period.Budgeting and Planning: Knowing the exact interest rate allows borrowers to budget more effectively and plan their finances with certainty. It prevents unexpected increases in monthly payments, helping borrowers manage their expenses.Peace of Mind: Homebuyers can experience peace of mind when they know their interest rate is secured. This ...
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By Bob Elliot, 30+ Yrs Industry Experience
(eXp Realty)
It was an uneventful week for the data reports, as the majority of the interest waits for the Federal Reserve’s rate decision heading into the following week. One of the most notable reports is for New Home Sales, which had managed to greatly exceed the projections for the end of the year moving into January. It is an early sign that there is a surge in response to the week-to-week rate cuts we have been observing over the last two weeks. The second largest data reports come from the PCE Index and preliminary projections for the Q1 GDP statistics. It is expected that the Federal Reserve’s decision to hold the current rate will hold true, but there is some optimism that a small rate cut may be a possibility.Pending Home SalesU.S. pending home sales shot up in December as falling mortgage...
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By Joseph Lorenzo, Your Law And Order Realtor
(Frank Rubi Real Estate LLC)
In our series "Real Estate Terms You Should Know, Today, we are going to learn about Loan-to-Value Ratio (LTV)." This financial metric is crucial in the real estate market, particularly when it comes to securing a mortgage.The Loan-to-Value Ratio (LTV) is a calculation used by lenders to assess the risk of a mortgage loan. It's determined by dividing the amount of the mortgage by the appraised value or purchase price of the property, expressed as a percentage. For example, if you're buying a home valued at $200,000 and you have a down payment of $40,000, you'll need a loan of $160,000. This makes your LTV 80% ($160,000 divided by $200,000).LTV is important because it influences a lender's decision to approve a mortgage. A lower LTV ratio is seen as less risky because it suggests that th...
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By Charles Stallions, 850-476-4494 - Pensacola, Pace or Gulf Breeze, Fl.
(Charles Stallions Real Estate Services )
Welcome to Mortgage Monday, where 28-year veteran realtor Charles Stallions CBR, CRS of Pensacola, Pace, and Gulf Breeze, Florida, will bring you the rates and insight into the mortgage industry. The real estate market has been a whirlwind of activity on the sun-soaked shores of Pensacola, Florida, where the gentle Gulf breeze meets the vibrant city life. Buyers eager to call this paradise home have grappled with soaring prices, bidding wars, and limited inventory. Amid this housing frenzy, one trend has emerged as a beacon of hope for prospective homeowners: the surge in demand for adjustable-rate mortgages (ARMs). As the housing market in Pensacola becomes increasingly competitive, many buyers find it challenging to afford their dream homes through traditional fixed-rate mortgages. Th...
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By Lisa Brown-McDonald CT Real Estate Agent, Fairfield & Litchfield County REALTOR®
(The Brokerage of New England)
How to Secure a Mortgage SuccessfullyInsider Tips for HomebuyersBuying a home is a significant investment, and securing a mortgage is an essential part of the process. Whether you're buying your first home or returning to the market to purchase another one, there is a lot of preparation to ensure your mortgage application is approved. To avoid unnecessary stress, wasted time and financial loss, it is crucial to understand and avoid the common mistakes that are often made when applying for a mortgage. Read on discover what they are and how to avoid them. Do not change job or career: stability is key when it comes to securing a mortgage. Your emplyement and income are major factors in calculating your mortgage. Changing jobs before closing can impact your eligibility and delay or cancel y...
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By Laura Sellers, www.AuburnOpelikaALRealEstate.com
(Berkshire Hathaway HomeServices Preferred Real Estate, Inc.; www.AuburnOpelikaALRealEstate.com)
Vintage 2298 Restaurant and Butcher Shop in Auburn ALVintage 2298 creates an immersive atmosphere where guests of all ages can enjoy a fine dining experience and food made with farm-to-table ingredients. My daughter and I recently ate at this wonderful restaurant to celebrate my birthday and had a fabulous time. I enjoyed the grilled beef tenderloin and she enjoyed the buttermilk fried chicken. Both dishes were absolutely delicious and we plan to go back. The atmosphere was also very nice with soothing live music in the background. They even signed the menu wishing me a happy birthday. Grateful for such a lovely experience.The Vintage 2298 restaurant invites diners to indulge in a unique gastronomic experience, where meticulously crafted dishes showcase the finest local ingredients. Fro...
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By Bill Salvatore - East Valley, Realtor - 602-999-0952 / em: golfArizona@cox.net
(Arizona Elite Properties )
In our series "Real Estate Terms You Should Know, Today, we are going to learn what is meant by a Home Equity Line of Credit (HELOC). This financial tool is an important concept for homeowners to understand, as it can be a valuable resource in managing your property’s equity. A Home Equity Line of Credit, commonly known as HELOC, is a type of loan where the uses the equity of their home as collateral. It is a revolving line of credit, similar to a credit card, allowing homeowners to borrow money against the equity of their home as needed, up to a certain limit, and repay it over time. HELOCs are typically used for large expenses like home renovations, education costs, or consolidating high-interest debt. The interest rates on HELOCs are generally lower than credit cards or personal loa...
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By Joseph Lorenzo, Your Law And Order Realtor
(Frank Rubi Real Estate LLC)
In our series "Real Estate Terms You Should Know, Today, we are going to learn what is meant by a Home Equity Line of Credit (HELOC). This financial tool is an important concept for homeowners to understand, as it can be a valuable resource in managing your property’s equity.A Home Equity Line of Credit, commonly known as HELOC, is a type of loan where the uses the equity of their home as collateral. It is a revolving line of credit, similar to a credit card, allowing homeowners to borrow money against the equity of their home as needed, up to a certain limit, and repay it over time.HELOCs are typically used for large expenses like home renovations, education costs, or consolidating high-interest debt. The interest rates on HELOCs are generally lower than credit cards or personal loans ...
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By Philip Bennett, Mortgage Brokerage
(Bennett Capital Partners Mortgage)
The Best Miami Warrantable Condos: A Condo Financing GuideWelcome to the vibrant world of Miami real estate, where sun-kissed beaches merge with urban charm. If you're drawn to the allure of condominium living, understanding warrantable condos is key in this bustling market.These gems are favored by lenders like Fannie Mae and Freddie Mac, making them a smart investment for savvy buyers—the promise of lower down payments and competitive mortgage rates await.Nestled on Brickell Avenue, Bennett Capital Partners stand as seasoned stewards in mortgage brokerage. They bring a wealth of experience to the table—navigating complex financial waters to anchor your dream property at terms tailored just for you.With Miami's condo scene flourishing from Sunny Isles Beach to Coconut Grove, let's dive...
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