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.


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Recent blogs on Lending / Financial
By Patty Clark, Helping Families Move with Care
(Morningside Homes, LLC 720-231-5200)
  American homeowners have a record amount of equity in their home.  Many of these homeowners would like to cash out part of that equity but don't want to trade an historically low interest rate for one that is as high as it's been in 20 years. Instead of refinancing their home, an option is to get a fixed-rate second-lien.  This is different than a HELOC, home equity line of credit, which gives you continual access to your equity at a variable rate.  A HELOC has a draw period where you only must pay the interest. A second mortgage is a loan against the equity where the homeowner will receive a lump sum and will make payments to repay the loan and interest over a specified period.  Generally speaking, lenders want the combination of the existing first-lien and the new second-lien not to...
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By Bob Elliot, 30+ Yrs Industry Experience
(eXp Realty)
The following week of CPI and PPI reports are typically lighter, with this week showing the same trend. There are a number of interesting interim reports that are worth noting however, including the Federal Reserve’s Beige Book which indicates the labor market has been cooling across most of the country. Following up is the Consumer Sentiment Reports, which is an excellent indicator for how the average consumer feels about their buying power, reflecting on the current economic conditions. Slower inflation, cheaper gas and a healthy economy have boosted optimism. Lastly, retail sales reports showing activity in December.Consumer Sentiment ReportThe numbers: Consumer sentiment jumped in January to the highest level since the summer of 2021, reflecting fresh optimism about the economy as i...
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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.Navigating the Mortgage Market: Understanding Current Trends and What to ExpectIn the ever-changing landscape of the real estate market, Charles Stallions, a 28-year real estate veteran, says one of the critical factors that homebuyers and homeowners keep a close eye on is mortgage rates. These rates play a crucial role in determining the affordability of homes and impact the housing market's overall health. This post will delve into the current state of mortgage rates and provide insights into what to expect soon.As of [current date], many factors influence mortgage rates, including economic in...
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By Charles Stallions, 850-476-4494 - Pensacola, Pace or Gulf Breeze, Fl.
(Charles Stallions Real Estate Services )
Home buyers in Pensacola who are holding off on their purchases in hopes of lower mortgage rates may need to reconsider their strategy. According to Freddie Mac, the 30-year fixed-rate mortgage averaged 6.6% this week, still below the historical norm of 7.74%. Furthermore, experts predict that mortgage rates will continue to decline throughout the year.Jessica Lautz, deputy chief economist of the National Association of REALTORS®, encourages home buyers to take advantage of the ongoing drop in mortgage interest rates. She highlights that this week's average mortgage rates are the lowest in eight months. For those considering a home purchase, Lautz suggests using this winter season to set financial goals and prepare for the upcoming year. With the current rate, the monthly mortgage payme...
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By Laura Sellers, www.AuburnOpelikaALRealEstate.com
(Berkshire Hathaway HomeServices Preferred Real Estate, Inc.; www.AuburnOpelikaALRealEstate.com)
Maximizing Your Home Investment: Considerations for Short-Term House PurchasesIn the realm of real estate, the common wisdom suggests that buying a house with the intention of staying for at least five years is a smart move. However, this general rule can be nuanced by various factors that, when considered, might make purchasing a house for a shorter duration a more strategic choice. Let’s delve into some key aspects to contemplate before making such a decision.For more details please click here.#HomeInvestment #RealEstateStrategies #MortgageManagement #ShortTermVsLongTerm #PropertyInvestment
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By Chris Dunham, The Real Estate Guy™
(Brokers Hub Realty)
In 2024, the impact of interest rates on the housing market remains a critical factor influencing the decision to buy a home. Interest rates play a pivotal role in shaping the affordability and attractiveness of homeownership. Several key reasons highlight the significance of interest rates in the home buying landscape.First, interest rates directly affect the cost of borrowing. In a higher interest rate environment, like 2023, mortgage rates rose, making home loans more expensive. This can result in increased monthly mortgage payments, potentially pricing some prospective buyers out of the market. Conversely, lower interest rates can make homeownership more accessible by reducing the overall cost of financing, which we have seen in the past 90 days (rates getting lower again).Secondly,...
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By Chris Dunham, The Real Estate Guy™
(Brokers Hub Realty)
Navigating the Credit Maze: Best Practices to Establish or Repair CreditIn today's financial landscape, a good credit score is more than just a number; it's the key to unlocking a world of opportunities. Whether you're looking to secure a mortgage, apply for a credit card, or even land that dream job, your creditworthiness plays a crucial role. If your credit score is not where you want it to be, fear not – there are practical steps you can take to establish or repair your credit. Let's explore some best practices that can pave the way to a healthier credit profile.1. Check Your Credit Report Regularly:Knowledge is power, especially when it comes to your credit. Obtain a copy of your credit report from each of the major credit bureaus – Equifax, Experian, and TransUnion – and review the...
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By Laura Sellers, www.AuburnOpelikaALRealEstate.com
(Berkshire Hathaway HomeServices Preferred Real Estate, Inc.; www.AuburnOpelikaALRealEstate.com)
The 5-year rule in real estate refers to the capital gains tax exemption available to homeowners who have lived in their primary residence for at least five consecutive years. In many countries, including the United States, individuals can exclude up to a certain amount of capital gains from the sale of their home if they meet this residency requirement. This rule aims to encourage home ownership and stability. Homeowners looking to maximize their tax benefits often plan their property transactions around this timeline. It’s essential to consult with a tax professional to understand the specific regulations and exemptions applicable to your situation. #RealEstate #CapitalGainsTax #Homeownership #TaxExemption #PropertyInvestmentBerkshire Hathaway HomeServices Preferred Real Estate
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By Charles Stallions, 850-476-4494 - Pensacola, Pace or Gulf Breeze, Fl.
(Charles Stallions Real Estate Services )
Your residence is more than just a place of residence; it stands as a valuable asset that can serve as a financial resource during crucial times. Embracing homeownership comes with a notable advantage—the opportunity to accumulate equity over time. This equity can be harnessed in various ways to finance significant life events or unforeseen expenses.Whether you aim to embark on a home improvement venture, consolidate debt, cover educational costs, or establish financial flexibility for the future, your home equity proves to be a potent tool in realizing these objectives. By comprehending the available options and understanding their implications, you can leverage your home's value to bolster your financial well-being and capitalize on opportunities that may arise.In collaboration with C...
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By Joe Metzler, Sr Loan Officer
(Cambria Mortgage)
What is a Mortgage Recast?Minneapolis, MN: Here in Minnesota where I am based, when you hear 'recast', you might think about casting a line for a big walleye, but actually, a mortgage recast is a little know tool that can allow you to potentially get a lower monthly mortgage payment without the need to actually refinance your current home loan.As a way to save money on interest over time, smart people know that paying as little as one extra payment a year, starting at the beginning of your loan, reduces a 30-year mortgage by six or 7-years. But whether you add a little to each monthly payment, or pay a large one-time lump sum, your required monthly payment amount always stays the same.But, if you have a substantial amount of money you'd like to apply to your mortgage, typically $10,000 ...
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By Endre Barath, Jr., Realtor - Los Angeles Home Sales 310.486.1002
(Berkshire Hathaway HomeServices California Properties)
I must admit the best ' One Dollar' I spent was this book about Dr. Deming, well in case you do not know, he was the American person who thought the Japanese about Quality. This book was written in 1991 and on page 263 he said:Big Deal! All right, so interest rates went up and inflation rose. What's the big deal? To answer that we have to understand something about our financial system.I was distracted by reading his words, incredible but so spot on anyway few pages later I thought I would share this:"...books have been written about the mismanagement of the savings and loan associations and congressional hearings have been held to investigate wrongdoing, yet all of it is silly nonsense. The problems of the S &L's were built into the system...""...everything is easy until you try it. Th...
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By Bob Elliot, 30+ Yrs Industry Experience
(eXp Realty)
With the first FOMC minutes of the year, it sets the tone of the potential moves the Federal Reserve will make, with them remaining firm in their current stance of not employing any rate cuts, however given the more recent end of year reports, there is a likelihood that rate cuts will start this year. The last change in rates was in July of last year. The second most important report also being the final PMI (Manufacturing) numbers, which has largely met expectations without any irregularities.S&P Global US Manufacturing PMIManufacturing PMI was revised lower to 47.9 in December 2023 from a preliminary of 48.2, and compared to 49.4 in November, pointing to a bigger deterioration in manufacturing conditions.FOMC MinutesAccording to the minutes, several officials said that the Fed might h...
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By Bob Elliot, 30+ Yrs Industry Experience
(eXp Realty)
With the first FOMC minutes of the year, it sets the tone of the potential moves the Federal Reserve will make, with them remaining firm in their current stance of not employing any rate cuts, however given the more recent end of year reports, there is a likelihood that rate cuts will start this year. The last change in rates was in July of last year. The second most important report also being the final PMI (Manufacturing) numbers, which has largely met expectations without any irregularities.S&P Global US Manufacturing PMIManufacturing PMI was revised lower to 47.9 in December 2023 from a preliminary of 48.2, and compared to 49.4 in November, pointing to a bigger deterioration in manufacturing conditions.FOMC MinutesAccording to the minutes, several officials said that the Fed might h...
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By Will Hamm, "Where There's a Will, There's a Way!"
(Hamm Homes)
It's a Month for Dollars and Sense January's not just a time for recovering from the holiday season...it's also Financial Wellness Month. Now is an ideal time to take stock of your own 2024 budget and perhaps share some tips with your network on how to improve their financial wellbeing. Here are some strategies to consider and share: Create a detailed budget. You can't manage what you don't measure, so be sure you're tracking your income and expenses and setting spending limits. If you followed a budget last year, it's time to review and tweak if needed. A plethora of apps and online services are available to help with your budgeting needs. Pay off high-interest debts if possible. Debts with double-digit interest rates, such as carried credit card balances, can be a financial drain. If...
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By Bob Elliot, 30+ Yrs Industry Experience
(eXp Realty)
Home flipping – a journey that transforms neglected fixer-uppers into profitable investments. If you're considering entering the real estate game or looking to enhance your flipping skills, you've come to the right place. Let's explore some tried-and-true strategies that can help you turn those distressed properties into lucrative ventures.Thorough Research and Analysis:Before making any investment, it's crucial to conduct extensive research. Identify emerging neighborhoods, assess market trends, and understand the potential resale value of the property. Look for fixer-uppers in areas where property values are on the rise, ensuring a higher return on investment.Create a Realistic Budget:One of the keys to successful home flipping is careful budgeting. Account for all potential expenses,...
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By Laura Sellers, www.AuburnOpelikaALRealEstate.com
(Berkshire Hathaway HomeServices Preferred Real Estate, Inc.; www.AuburnOpelikaALRealEstate.com)
What Is a Non-arm’s Length Transaction?Learn the differences between arm’s length and non-arm’s length real estate transactions. It’s not merely about the exchange of property; there are nuances you must understand in order to navigate these waters wisely. Uncover more in this recent #GTK blog post.#BHHS #BHHSRealEstate #NonArmsLengthTransactions #BHHS #BHHSRealEstate #Homebuying #InvestingOpportunities #MortgageRatesFor more information please visit my website.
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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 3, 2024  Lender Term/Type Interest Rate % Points % *APR Aloha Pacific Federal Credit Union808-531-3711NMLS#377314 15-YR Fixed 5.875 2.000 6.173 30-YR Fixed 6.000 1.625 6.264 5-YR ARM 5.875 0.750 6.053 American Savings Bank808-593-1226NMLS#423168 15-YR Fixed 5.125 2.000 5.559 30-YR Fixed 5.875 2.000 6.144 5-YR ARM 5.625 1.750 7.042 Bank of Hawaii877-616-2636 15-YR Fixed 5.875 1.000 6.032 30-YR Fixed 6.000 2.000 6.189 5-YR ARM 6.000 1.000 7.221 Central Pacific Bank808-544-0500NMLS#416603 15-YR Fixed 5.500 1.875 5.931 30-YR Fixed 6.000 1.875 6.265 5-YR ARM 6.750 0.000 7.747 Finan...
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By Laura Sellers, www.AuburnOpelikaALRealEstate.com
(Berkshire Hathaway HomeServices Preferred Real Estate, Inc.; www.AuburnOpelikaALRealEstate.com)
FHA (Federal Housing Administration) requirements play a crucial role in determining eligibility for mortgage loans, particularly for those seeking government-backed financing. These requirements are designed to make homeownership accessible to a broader spectrum of individuals, including first-time homebuyers and those with moderate income.Navigating FHA requirements is a crucial step for potential homebuyers. Understanding these criteria can empower individuals to make informed decisions as they pursue the dream of homeownership.#FHARequirements #HomeLoan #MortgageQualification #HomeownershipJourney #RealEstateFinanceFor more information please click here.
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By Bob Elliot, 30+ Yrs Industry Experience
(eXp Realty)
With the New Year, the final week only featured the normal reports of Jobless Claims, S&P Shiller Home Price Index (YoY), and the Chicago Business Barometer. All of them will have limited impact compared to the GDP and the Inflation data reports that have already been released.S&P Shiller Home Price Index (YoY)For the ninth consecutive month, home prices in prominent U.S. metropolitan regions have surged, reaching an all-time high. This increase is attributed to an ongoing shortage of available homes for sale. In October, the S&P CoreLogic Case-Shiller 20-city house-price index, after seasonal adjustments, showed a 0.6% rise compared to the preceding month.Chicago Business BarometerThe Chicago Business Barometer, also known as the Chicago PMI, fell 8.9 index points to 46.9 in December.E...
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By Bob Elliot, 30+ Yrs Industry Experience
(eXp Realty)
Real estate investing has long been considered a lucrative venture, but the common misconception is that it requires a substantial amount of capital to get started. In reality, numerous strategies allow beginners to dip their toes into the real estate market with minimal funds. We will guide aspiring investors on how to start their real estate journey with little money and build a solid foundation for long-term success.Educate YourselfBefore venturing into real estate investing, it's crucial to acquire knowledge about the market, different investment strategies, and potential risks. Utilize online resources, attend local real estate seminars, and read books authored by successful investors. Understanding the basics will empower you to make informed decisions, especially when dealing wit...
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