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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 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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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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