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 Jason E. Gordon, Sr Loan Officer, CMA, CMPS, CDLP, CDRE, RCSD, CDPE
(AmeriFirst Financial Inc, San Diego, CA)
Knowing the truth behind mortgage quotes has never been more important. As part of the MORTGAGE DEEP DIVE video education series, The Truth Behind Mortgage Quotes takes an in-depth look "behind the curtain" of how mortgage quotes are actually customized and quoted (and how consumes may be duped if they are not careful what to look for). If you are a prospective Borrower and/or a Professional who serves this population, this video is worth a look!
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By Michael Peron, Michael Peron, Dave Florida Real Estate
(South Florida Home Solutions)
The biggest shock to homebuyers is the soaring mortgage rates of 2022 that doubled in one year resulting in approximately 15 million mortgage ready buyers displaced from the market due to affordability issues. As of February 23, 2023, the 30-year fixed rate mortgage was at 6.5%.  While that is twice as high as it was on January 6, 2022, it is still lower than the 7.75% average rate since April 2, 1971, according to the Freddie Mac Primary Mortgage Market Survey. When rates increase at a rapid pace like this, it takes time for the public to adjust and begin to accept it as the new normal. Prior to the housing bust that led to the Great Recession, the normal for mortgage rates was in the 6% range and existing home sales were over 6.5 million for three years.  From 2007 to 2014, home sales...
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By Robert Rauf
(HomeBridge Financial Services (NJ))
 FHA Loans Just got MUCH more affordable After years of being one of the more expensive options for mortgage insurance this is welcome news.  In many cases FHA will now be the less expensive option for mortgage insurance for low down payment borrowers vs conventional mortgages.The typical 3.5% down FHA loan will  see the Monthly Mortgage Insurance Premium dropping from .85 to .55. (for loans under $726,200)What does that all mean in English?In my market a typical FHA borrower will likely have a $400,000 mortgage.   Prior to this change the MIP would cost about $283/month and after the change it will be about $183/month - A WHOPPING $100 less per month!The FHFA that oversees the agencies has made it a mission to make homes more affordable for all. We can see that in recent changes to Con...
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By Matt Brady, One of San Diego's Best Lenders
(Watermark Capital)
Happy Monday! Rates popped up Friday. The inflation data came in hotter than expected and so did consumer spending. These are both reasons for the Fed to keep rates up higher for longer. Remember, the Fed wants to see a weaker jobs market, lower inflation, and a weaker consumer. Markets are still betting on a 25 bp hike at the next Fed meeting, however the 50 bp hike is gaining traction. Look at the numbers now compared to a month ago.      The troublesome part that not too many people are discussing is the amount of consumer debt that currently exists (especially when compared to consumer savings). I have said from the beginning that if there was a real recession that it would begin in the corporate debt markets. The consumer debt bubble looks just as scary. Nevertheless, I will conti...
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Dear Friends, Clients and Future Clients, Great news for the first time home buyers making a purchase with the FHA loan. California had the 3rd highest amount of FHA loans made last year in the nation so there are many buyers using this product here. ( One in 10 home buyers used the FHA loan last year) The FHA Loan plays a pivotal role in providing housing opportunities for families throughout California. When your ready to make that Vallejo CA home purchase please contact Tim Garton Re/Max Gold Vallejo 707-315-5555.   
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By Brian Madigan, LL.B., Broker
(RE/MAX West Realty Inc., Brokerage (Toronto))
Commercial Bond Yields CMB 5 Year - 3.84%*EST. CANHOU 06/15/28 [+0.03%]   ‌ 10 Year - 3.86%*EST. CANHOU 06/15/33 [-0.01%]         * denotes interpolated rate GoC 5 Year - 3.58% CAN 09/01/27 [+0.02%]   ‌ 10 Year - 3.40% CAN 06/01/32 [-]   ‌ 15 Year - 3.43%* Est. 12/01/36 [-0.01%]   ‌ 20 Year - 3.41%* Est. 12/01/41 [-0.01%] GOC Bonds are for reference purposes only Floating rate insured cost of funds 4.76% [-]                   Prime Rate 6.70%
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By John Meussner, #MortgageMadeEasy Fair Oaks, CA 484-680-4852
(Mortgages in AZ, CA, CO, DE, FL, GA, MD, MN, MT, NC, NJ, NV, OK, OR, PA, SC, SD, TN, TX, UT, VA, WI)
FHA Loans Are Getting More Affordable For the first time in a long time, HUD has announced that FHA loans are getting more affordable!  A long time ago, in a galaxy far, far away (specifically, circa 2009 when housing was in a bubble that was bursting), HUD was losing a ton of money due to housing foreclosures, and to offset these losses and improve their finances, they made the FHA loan program more expensive by increasing MIP costs (the cost of mortgage insurance for FHA loans).  Not only did they make it more expensive, but they implemented mortgage insurance that would remain in place for the entire life of an FHA loan for borrowers putting down less than 10% down payment (the vast, vast majority of FHA borrowers). FHA, being a government-insured loan program through the department ...
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By Joseph Orabona, Your defense against the IRS
(Vector Tax & Accounting LLC)
 It's no secret that millions of taxpayers struggle to pay their taxes. The IRS is unyielding when it comes to collecting money, they think is theirs, so if you're facing back taxes owed the federal government highly advises seeking assistance as soon as possible before they resort to aggressive measures like taking money out of your bank accounts and seizing wages or property.The IRS offers several different payment plans to help taxpayers pay off their tax debt. These plans include: Guaranteed Installment Agreement: This plan is available to taxpayers who owe $10,000 or less in taxes. The taxpayer must agree to pay the debt in full within three years and must have filed all required tax returns. No financials are required. Streamlined Installment Agreement: This plan is available to t...
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By Brian Skaar, Purchase Loan Specialist - VA, FHA, Conventional
(VanDyk Mortgage - VA, FHA, Conventional, VA Jumbo, Jumbo, Purchase Loans, & Refinance, Direct Lender)
VA Funding Fee going down April 7, 2023The VA (Veterans Administration) has announced the the VA Funding Fees will be reduced back to the fee structure that was in place prior to the Blue Water Navy Veterans Act going into effect.  The new, reduced VA Funding Fees will apply to loans closed on or after April 7, 2023.The typical VA Funding Fee is being reduced from 2.3% to 2.15%.  The subsequent use VA Funding Fee is reduced from 3.6% to 3.3%.Visit this page for all details on the new VA Funding Fees for 2023We have specialized in VA Loans since 2008.  We would be honored to assist you utilize your VA Home Loan benefit. Our experience can help you in more ways than one.     
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By Matt Brady, One of San Diego's Best Lenders
(Watermark Capital)
Last week’s inflation data came in on the higher side of expectations. Investors were hoping for the declination to continue, especially off the back of a stronger jobs report. This spooked the markets in fear of a more hawkish policy from the Fed.Here is how institutions are currently placing their bets on the next Fed meeting.     Yes, the market is still favoring a 25bp increase (Since Powell has said a few times that the goal for end of 2023 is 500-525).However, take a look at the change in percentages over the past several days.   The number of those betting on a 25 bp hike has dropped by 12% since the CPI data was released.With inflation not coming down as fast as market participants hoped for, and the labor markets looking strong, the argument for increased rate hikes can be made...
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By Robert Rauf
(HomeBridge Financial Services (NJ))
So here is the Scenario:You apply for a mortgage, and the following day your phone begins ringing off the hook, everyone trying to sell you a mortgage or even a house.What you are experiencing is what is called "Trigger Leads". When your credit is run for a mortgage we get a tri-merged credit report from the three main databases for credit (which is why you have 3 different credit scores). These Databases now know you are shopping for a mortgage and they  sell your information to anyone willing to pay for it.  If you enjoy annoying "spammy calls" with everyone trying to sell you things you can stop reading here....... OK, so you decided you HATE unwanted calls... GOOD, I'm right there with you. We have all heard of the Do Not Call List.  That can be used here, but I personally haven't h...
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By Brian Madigan, LL.B., Broker
(RE/MAX West Realty Inc., Brokerage (Toronto))
Commercial Bond Yields CMB 5 Year - 3.72%*EST. CANHOU 06/15/28 [+0.01%]   ‌ 10 Year - 3.78%*EST. CANHOU 06/15/33 [-]         * denotes interpolated rate GoC 5 Year - 3.46% CAN 09/01/27 [+0.02%]   ‌ 10 Year - 3.30% CAN 06/01/32 [+0.01%]   ‌ 15 Year - 3.38%* Est. 12/01/36 [-0.01%]   ‌ 20 Year - 3.37%* Est. 12/01/41 [-0.02%] GOC Bonds are for reference purposes only Floating rate insured cost of funds 4.76% [-]                   Prime Rate 6.70% [-]    
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By Joe Manausa - Tallahassee, FL, Tallahassee Real Estate
(Joe Manausa Real Estate)
As mortgage interest rates change, real estate market experts surface and make bold claims on how the market will evolve. They state, as fact, that rising rates mean cooling sales while declining rates equate to rising sales. I've read these claims for 31 years, but I wondered if they were true. The data has been gathered, and my short video shows why you might be stunned by what the analysis uncovered.Does The Housing Market Predictably Move With Changing Interest Rates?< Please remember to "like" the post and the video on YouTube too! Thank you. 🏡  Link to all homes for sale in Tallahassee📺 Subscribe To The Joe Manausa Real Estate Channel and Get More Housing Market Reports, Listings, and Real Estate Marketing Tips, and answers to your frequently asked questions.📘 Get the DIGITAL MARK...
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By Matt Brady, One of San Diego's Best Lenders
(Watermark Capital)
It’s time for another Weekly Rate Watch. My goal is to help navigate you through the world of finance and how it relates primarily to the real estate industry. Should you ever have any questions at all, please do not hesitate in reaching out. I’m always here to help. Let’s begin!  CPI numbers come out on Tuesday. We have seen a consistent decline in inflation since the summer of last year. More importantly, last month was the first time we have seen a month-over-month decline in inflation (as opposed to year over year).Here is how inflation has moved over the past year.      If we get another month-of-month decline in the data, the markets will believe that the downtrend in inflation is confirmed.  Fed Chairman Jerome Powell said he and the Fed have now seen signs of disinflation. The ...
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By Jason E. Gordon, Sr Loan Officer, CMA, CMPS, CDLP, CDRE, RCSD, CDPE
(AmeriFirst Financial Inc, San Diego, CA)
Will Low Unemployment Figures Prevent A Recession in 2023? According to Treasury Secretary Janet Yellen, "You don't have a recession when you have 500,000 jobs and the lowest unemployment rate in 50 years." With the unemployment rate at 3.4% (the lowest since 1969), is Ms. Yellen correct?CEO's think otherwise.Over 140 CEO's were polled in the recent Q1 CEO Confidence Survey, and these notable stats prevailed: 93% of CEO's are currently preparing for a recession in 2023 Most believe the recession will be brief 55% of CEO's consider a global recession to be the biggest challenge for their companies Only 37% of CEO's forecast an expansion in their workforce over the next 12 months (this number was 44% in Q4) 50% are amidst and/or forecast hiring freezes What is the correlation between Unem...
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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: 5.625% Credit Score:740LTV:96.5%loan amount: $300kAPR: 6.54%Conventional 15 year: 5.375%Credit score:740LTV:75%Loan Amount: $300kAPR: 5.46%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 RealtyPilot.com & OfferRunway.com, Broker, Software Architect Automating Real Estate
(Realty Pilot)
The process of Quantitative Tightening (QT), where the central bank sells back the bonds it had purchased during Quantitative Easing (QE), can increase the risk of another financial crisis or black swan event similar to the one seen in 2019. Despite banks having $3.3 trillion in reserves, the process of reducing these reserves through QT can have significant implications for the financial system.As the central bank sells back its bonds, the supply of money in the system decreases, leading to higher interest rates. This, in turn, can lead to a tightening of lending conditions, making it more difficult for businesses and consumers to access credit. If this tightening becomes too severe, it can lead to a slowdown in economic activity and an increase in defaults on loans, ultimately leading...
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By Matt Brady, One of San Diego's Best Lenders
(Watermark Capital)
My goal is to help navigate you through the world of finance and how it relates primarily to the real estate industry. Should you ever have any questions at all, please do not hesitate in reaching out. I’m always here to help. Let’s begin!  As expected, the Fed raised rates by a quarter point. The markets had priced in that move already and were more eager to hear what Powell had to say about the economy and its outlook.He said the same thing he has always been saying: The Fed will be very data-dependent, they will be headstrong in their fight against inflation, and more rate hikes may be needed.None of this was new. However, I did find something extremely fascinating and that was during one of the questions he answered.Powell did mention that for the first time he, and the Fed members...
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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 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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