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 Linda Peltz, It's The Sold That Counts
(eXp Realty)
When it comes to homeownership, the allure of rural living often captivates many, promising tranquility, open spaces, and a sense of connection with nature. However, living in rural areas can present unique challenges, especially when it comes to securing adequate home insurance coverage.  Recently Linda Peltz as homeowner agents held a discussion with Ziang Her (Ziang) from PBM Insurance. Meet Ziang, the dynamic agency owner of PBM Insurance with an impressive background in the insurance industry. With over five years of experience, Ziang is a seasoned expert in navigating the complex landscape of home insurance in California. Her journey began as a captive agent with State Farm, providing her with invaluable insights into the challenges faced by homeowners in securing coverage. Now an...
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By Chris Goulart, California Hard Money Loans & Solutions
(All California Lending)
Private hard money construction loans are a unique type of financing specifically meant to be a bridge loan.  These loans are not long term.  Rather they fill a need to take a property from ground up or partially built to completion.  During this period of time, a property is in a unique state.  This unique state requires a specialized financing tool – which is a construction loan.When a property has nothing built on it, the value of the property is essentially land value.  Many construction projects do not have enough equity in the land value to finance the full construction of a build.  For land loans typically the maximum leverage point for financing is 50%.  Once the construction is completed, however, the value is higher than the land value.  Additionally, financing is available at...
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By Joe Jackson, Clintonville and Central Ohio Real Estate Expert
(Keller Williams Capital Partners Realty)
We unveil a game-changing opportunity to reduce your mortgage rate by a whopping 2%. Learn the insider secrets and strategies to secure a lower interest rate and potentially save thousands over the life of your loan. Don't miss this chance to take control of your financial future and make the most of your homeownership journey. Have a super fantastic week!Joe Jackson, Realtor-KWCP Prices are up, but you can keep costs down with a 2-1 buydown—and we can get you a lender who can help.  A 2-1 buydown means that during the first year of your mortgage, the interest rate you'll pay will be 2% below market. In the second year, it will be 1% lower. After that point, the interest rate returns to the original higher rate. Continue To Read And Share  Mortgage 101 it all starts here we do the resea...
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By Bion Grady, Douglas County Real Estate Specialist
(Keller Williams West Atlanta)
We may not think about it often, but as the median age of the country’s population creeps steadily higher, it has many effects on the daily lives of all of us—regardless of age. It would be shocking if it weren’t so, given the size of the shift: the median age of the U.S. population in 1920 (Boomers’ parents’ era) was 25.3; today, the Census Bureau says it’s 38.9!Since Americans’ life expectancies have risen spectacularly over the same period—from 53.2 to over 78, it’s important to recognize how great an effect it has on our housing choices and how we plan to pay for them, for most, Dallas home loans are a great part of that discussion.Earlier generations rightly felt that “they were in the last inning” of their lives much earlier, so they would have approached home loans from a radical...
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By Bob Elliot, 20+ Yrs Industry Experience
(eXp Realty)
Last week’s economic reporting included readings on the Fed’s interest rate decision, S&P Case-Shiller’s Home Price Indices, sales of new homes, and pending home sales. Weekly readings on mortgage rates and jobless claims were also released. The Federal Reserve raised its target interest rate range to 5.25 to 5.50 percent; this announcement signaled that rates for home loans and unsecured credit would also rise.S&P Case-Shiller Reports Slower Home Price Growth  in MayAverage  U.S. home prices fell in May according to the S&P Case-Shiller 20-City Home Price Index. Home prices were -1.70 percent lower as compared to an expected dip of -1.90 percent and April’s reading of -1.70 percent. The top three cities reporting the highest pace of year-over-year home price growth were Chicago, Illino...
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By Dale Taylor, Realtor = Chicago Illinois Homes Townhomes Condos
(Re/Max 10 New Lenox Illinois http://dtaylor.remax.com)
Thanks Jon Hamilton Vice President of The Federal Savings Bank for providing this very helpful information.  Jon can be direct at 312-471-6993 or 708-218-8480 - jhamilton@thefederalsavingsbank.comFirst-time home buyers shouldn’t let themselves be daunted by their loan estimate– a document that estimates the terms, monthly payments, and closing costs associated with the mortgage for which you are applying. If you purchased a home with any lender before 2015, you may have received a so-called “good faith estimate,” which the standardized loan estimate form replaces. Click here to view a sample loan estimate from the Consumer Financial Protection Bureau.   WHAT KIND OF INFORMATION IS ON THE LOAN ESTIMATE?  The first page of your loan estimate (or “LE”) ought to clearly spell out the mortga...
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By Dale Taylor, Realtor = Chicago Illinois Homes Townhomes Condos
(Re/Max 10 New Lenox Illinois http://dtaylor.remax.com)
Thanks Jon Hamilton Vice President of The Federal Savings Bank for providing this very helpful information.  Jon can be direct at 312-471-6993 or 708-218-8480 - jhamilton@thefederalsavingsbank.comMortgage lenders must issue a closing disclosure at least three business days before you close on your home loan– whether you’re refinancing your current home or purchasing a new one. Closing disclosures (also known as “CD”) are short documents that outline the final terms of your mortgage and make it easy to reference important numbers like your interest rate, your total monthly payment, and your closing costs. Armed with your closing disclosure, you can confidently come to your closing appointment as a fully informed homebuyer.   CLOSING DISCLOSURE 3-DAY RULE  By law, your lender must issue y...
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By Dale Taylor, Realtor = Chicago Illinois Homes Townhomes Condos
(Re/Max 10 New Lenox Illinois http://dtaylor.remax.com)
Thanks Jon Hamilton Vice President of The Federal Savings Bank for providing this very helpful information.  Jon can be direct at 312-471-6993 or 708-218-8480 - jhamilton@thefederalsavingsbank.com"Many first-time homebuyers are understandably concerned by the prospect of high upfront costs of buying a home. They may worry they don’t have enough in savings, or that they’re going to get ripped off. At The Federal Savings Bank, we’re dedicated to helping guide prospective buyers through the homebuying process. Here are a few of the upfront costs of buying a house:1. EARNEST MONEY (OFTEN 1-2% OF THE PURCHASE PRICE)When you make an offer on your new home, you will typically pay earnest money when the seller accepts that offer. This payment shows the seller you’re serious about buying their h...
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By Charles Stallions, 850-476-4494 - Pensacola, Pace or Gulf Breeze, Fl.
(Charles Stallions Real Estate Services )
Prices are up, but you can keep costs down with a 2-1 buydown—and we can get you a lender who can help.  A 2-1 buydown means that during the first year of your mortgage, the interest rate you'll pay will be 2% below market. In the second year, it will be 1% lower. After that point, the interest rate returns to the original higher rate. Continue To Read And Share  Mortgage 101 it all starts here we do the research for you whether a VA, FHA, Conventional, or non-traditional. We can help take the challenges out of the equation.  How to get a Mortgage and FREE Credit Report    Thinking of buying use our Broker Buying System to do your searches, find out the actual value of each home before you make an offer, property disclosures at your fingertips, home inspection reports, and any work tha...
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By Bob Elliot, 20+ Yrs Industry Experience
(eXp Realty)
Last week’s economic reports included readings on U.S. housing markets, housing starts, and building permits issued. Sales data for previously-owned homes were also released along with weekly readings on mortgage rates and jobless claimsHome Builder Confidence Ticks Up in JulyThe National Association of Home Builders reported a one-point gain in home builder confidence with an index reading of 56 for July. Analysts predicted a reading of 57 and June’s reading was 55. Readings over 50 indicate that most home builders are confident about current  U.S. housing market conditions. Overall homebuilder confidence rose for the seventh consecutive month in July.Component readings of the Home Builder Confidence Index were mixed as builder confidence in current housing market conditions rose by on...
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By Bill Gassett, Metrowest Massachusetts Real Estate
(RE/MAX Executive Realty)
Non-warrantable condo loans can present challenges when financing a condominium purchase. Government entities like Fannie Mae and Freddie Mac do not back these loans. However, there are options available through specialized lenders offering portfolio loans.Working with experienced real estate agents and lenders is crucial to navigating the stricter rules and requirements of non-warrantable condo loans.Determining whether a condo is warrantable can be done by checking approved condo project lists or consulting real estate and lending professionals.What is a Non-Warrantable Condo?Over the course of my thirty-seven-year career, many of my real estate clients have asked what a non-warrantable condo is.A non-warrantable condo, or a non-warrantable condominium project, refers to a residential...
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By Jackie A. Graves, President
(ChangeMyRate.com® A Mortgage Corporation)
If you don’t have substantial earnings, it could still be possible to buy a house.Buying a home can be challenging if you have low income, but it's an important step toward building assets and growing your net worth. Loans for low-income borrowers can make homeownership more achievable.What Is a Low-Income Home Loan?A low-income home loan is a mortgage that homebuyers can qualify for even if they don't have substantial earnings.Some types of home loans set income limits. Others are open to people with higher incomes but don't exclude low-income borrowers.Private lenders issue low-income home loans that are insured by government agencies or by Fannie Mae or Freddie Mac, the government-sponsored enterprises that back most conventional mortgages in the U.S. Certain government agencies also...
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By Charles Stallions, 850-476-4494 - Pensacola, Pace or Gulf Breeze, Fl.
(Charles Stallions Real Estate Services )
If you thought finding the right home, location, and price could be a challenge well you could be right but think of finding the right mortgage and the challenges it could be with all the programs available luckily for our buyers we have a really secret liaison and she knows her mortgages like no other would you like to really I mean really get the honest scoop on mortgages and how the wrong one could cost you thousands of dollars. Call or Text Charles NOW at 850-476-4494 with "Mortgage" and I will put you in touch, yes it's exclusive and the best but I love to share only the best with people.   If you’re thinking of buying a home, chances are you’re paying attention to just about everything you hear about the housing market. And you’re getting your information from a variety of channe...
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By Joe Jackson, Clintonville and Central Ohio Real Estate Expert
(Keller Williams Capital Partners Realty)
Great insight! A drop in equity doesn't necessarily imply low equity levels. It's essential to distinguish between short-term fluctuations and the long-term value of assets. Stay focused on the bigger picture and remember that equity can bounce back and even grow stronger over time.Have a super fantastic week!Joe Jackson, Realtor-KWCP A Drop in Equity Doesn't Mean Low Equity   You may see media coverage talking about a drop in homeowner equity. What's important to understand is that equity is tied closely to home values. So, when home prices appreciate, you can expect equity to grow. And when home prices decline, equity does too. Here's how this has played out recently.  Home prices rose rapidly during the unicorn years. That gave homeowners a considerable equity boost. But those unicor...
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By Shayne Stone, "Your Rock Solid Choice Realtor"
(HomeSmart)
A Drop in Equity Doesn't Mean Low Equity You may see media coverage talking about a drop in homeowner equity. What's important to understand is that equity is tied closely to home values. So, when home prices appreciate, you can expect equity to grow. And when home prices decline, equity does too. Here's how this has played out recently. Home prices rose rapidly during the unicorn years. That gave homeowners a considerable equity boost. But those unicorn years couldn't last forever. The market had to moderate at some point, and that's what we saw last fall and winter. As home prices dropped slightly in the back half of 2022, equity was impacted. Based on the most recent report from CoreLogic, there was a 0.7% dip in homeowner equity over the last year. However, the headlines reporting o...
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By Jackie A. Graves, President
(ChangeMyRate.com® A Mortgage Corporation)
Ready to apply for a mortgage? This document checklist will help you find what you need.When you're buying a home, gathering the paperwork for your mortgage before you apply can be a big task. Tracking down documents can take time but doing it before you need them could help you get to the closing table faster.You will owe your lender a stack of documents once you apply – and during underwriting – that show you can repay the loan. A mortgage application typically requires a paper trail to verify: Income and employment. Assets and debts. Credit history. Identity. Rental history. Other information, such as divorce, bankruptcy or gift funds. Mortgage Application InformationThe first step in applying for a mortgage is completing a standardized form called the Uniform Residential Loan Applic...
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By Bob Elliot, 20+ Yrs Industry Experience
(eXp Realty)
Mortgage loans are an essential aspect of financing the purchase of a property. Among the various types of mortgages available, one option that may be advantageous for both buyers and sellers is an assumable mortgage loan.An assumable mortgage loan is a type of home loan agreement that allows a homebuyer to assume the existing mortgage of the seller when purchasing a property. In other words, the buyer takes over the seller's mortgage terms and conditions, including the interest rate, repayment schedule, and remaining balance.Benefits of an Assumable Mortgage Loan:Favorable Terms: Assumable mortgages often carry lower interest rates than current market rates. By assuming an existing mortgage, a buyer may secure more favorable terms compared to obtaining a new loan, potentially resulting...
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As interest rates have climbed, homebuyers have been confronted with higher borrowing costs.That has led more home purchasers to opt for one strategy, purchasing mortgage points, as a way to defray higher monthly payments.Mortgage points let buyers pay an upfront fee to lower the interest rate on their loans. In some cases, sellers will help to buy down rates to help ease transaction costs.Almost 45% of conventional primary home borrowers bought mortgage points in 2022 to reduce their monthly mortgage payments, a trend that has continued into this year, according to recent research from Zillow.That is up from 29.6% in 2021, when interest rates were lower.The 30-year fixed-rate mortgage currently averages 6.7% according to Freddie Mac, up from 5.8% a year ago. The 15-year fixed-rate mort...
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By Bob Elliot, 20+ Yrs Industry Experience
(eXp Realty)
Last week’s economic reporting included readings on month-to-month and year-over-year inflation and consumer sentiment. Weekly readings on mortgage rates and jobless claims were also published.Month-to-Month Inflation Rises as Year-Over-Year Inflation SlowsThe Consumer Price Index for June rose 0.20 percent in June as compared to May’s reading of 0.10 percent growth and expectations of 0.30 percent month-to-month growth. The core CPI reading, which excludes volatile food and fuel sectors, fell to 0.20 percent growth in June as compared to May’s month-to-month reading of 0.40 percent growth.The year-over-year reading for the Consumer Price Index in June slowed to 3.00 percent growth as compared to May’s reading of 4.00 percent and analysts’ expected reading of 3.10 percent year-over-year...
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By Laura Sellers, www.AuburnOpelikaALRealEstate.com
(Berkshire Hathaway HomeServices Preferred Real Estate, Inc.; www.AuburnOpelikaALRealEstate.com)
Grants for first-time and low-income homebuyers are available from various sources in the U.S. Discover why these grants are important for the economy and how to go about securing one in this recent #GTK post. [Insert link to agent blog or BHHS link] Questions? Send them my way! I’d love to help you on your real estate journey. Wouldn’t it be nice to receive some free money so you can buy a home? Federal, state, and local governments, plus housing foundations and charitable organizations are all great resources that provide grants to homebuyers in need of help.Why help first-timers? As they tend to be young and still building credit and savings, first-time homebuyers may take years to save enough for a down payment and qualify for a mortgage. The sooner they can buy a home, the sooner t...
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