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 John Lake, Cape Cod and Sarasota Mortgage Banker
(Shamrock Home Loans)
In the Words of the Songstress Paula AbdulI take two steps forward, I take three steps backWe come together 'cause opposites attractAnd you know it ain't fiction, just a natural factWe come together 'cause opposites attract.Over the last two weeks, the mortgage rate market has taken two steps forward and then three steps back with all kinds of good news, bad news and news that is having huge impacts on the market, but isn’t getting the attention it deserves to understand, ain’t that a natural fact!Baby, ain't it somethin' how we lasted this long?You and me provin' everyone wrongDon't think we'll ever get our differences patched We come together 'cause opposites attractAin’t it something how these higher rates have lasted so long, the market is provin everyone wrong and I don’t know when...
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By George Thoma, Mortgage Broker
(Kamaaina Mortgage Group Inc.| Equal Housing Lender, NMLS 1276471 - NMLS 312260)
 An FHA 203(h) loan is a specialized mortgage program which is offered by the Federal Housing Administration (FHA) in the United States. It is designed to assist victims of major natural disasters, like hurricanes, floods, earthquakes, or other catastrophic events like fires , by providing them with affordable financing for purchasing or rebuilding homes.Here are the key features of the FHA 203(h) loan program: Disaster Assistance: The primary purpose of the FHA 203(h) loan is to assist individuals whose homes have been destroyed, burned, or severely damaged in a presidentially declared disaster area. These loans help affected individuals and families secure housing after such events. 100% Financing: One of the main advantages of the FHA 203(h) program is that it allows to finance up to...
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By Joseph Orabona, Your defense against the IRS
(Vector Tax & Accounting LLC)
Few things in life are as daunting as owing money to the IRS. When that notice arrives in your mailbox, it's easy to panic and do nothing. But every day you delay acting, interest and penalties continue to accumulate, potentially causing your liabilities to skyrocket and wreak havoc on your financial stability. In this article, we'll discuss one of the many available options for tax relief called an "Offer in Compromise." But before we delve into that, if you're facing a tax problem, get in touch with our firm to schedule a consultation. If you owe back taxes to the IRS or have unfiled tax returns from previous years, you may qualify for programs that make it easier and faster to pay what you owe. One such program is the offer in compromise, which allows eligible individuals to settle t...
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By Linda Peltz, It's The Sold That Counts
(eXp Realty)
The financial future of real estate can be influenced by various factors such as economic trends, population growth, interest rates, and government policies. It's important to conduct thorough research and analysis to understand local market conditions and make informed investment decisions. Diversification, long-term planning, and staying updated with industry news and trends can help navigate the real estate market and increase the potential for a favorable financial future. Consulting with financial advisors or real estate professionals can also provide valuable insights and guidance in achieving your desired financial goals.Recently realtor Linda Peltz sits down with Nathan Moore, the President of Agape Planning Partners, a boutique wealth management firm specializing in comprehensi...
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By Matt Brady, One of San Diego's Best Lenders
(Watermark Capital)
We saw last Friday’s jobs come in lower than expectations, however, the unemployment number ticked lower to 3.5%. With a labor market this “strong”, the Fed will have no choice but to keep rates up longer than expected.Remember, the Fed believes that a strong labor market, along with increased wages, is putting pressure on the demand for consumer goods which is ultimately leading to increased inflation. This is the main reason that they want to see a weaker labor market (which is somewhat hypocritical since one of the 2 pillars of the Fed’s job is to create maximum employment).More unexpected was the Fitch rating that downgraded the US debt from AAA to AA+. I’m not surprised, as I have been claiming the next recession will occur with a default in the debt markets, but it did catch the ...
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By Bill Salvatore - East Valley, Realtor - 602-999-0952 / em: golfArizona@cox.net
(Arizona Elite Properties )
The Fed did exactly what markets expected and raised rates by 25bps. During his speech, Chairman Powell continued to say that the Fed will be making future interest rate decisions based on the economic data. Two days after this speech, the Fed’s preferred inflation report, the PCE, came in lower than expected at 4.1% year over year.Although the PCE showed a decreasing year-over-year change, it grew 0.2% month over month. I am still waiting for either the CPI or PCE (both inflationary indexes) to show a trend of month-over-month decreases before considering a true pause in the Fed’s rate hikes. We’re not there yet, but we are getting closer.The other thing that the Fed wants to see is a weaker labor market. They want to see unemployment tick up higher and don’t want to see an increase i...
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By Matt Brady, One of San Diego's Best Lenders
(Watermark Capital)
The Fed did exactly what markets expected and raised rates by 25bps. During his speech, Chairman Powell continued to say that the Fed will be making future interest rate decisions based on the economic data. Two days after this speech, the Fed’s preferred inflation report, the PCE, came in lower than expected at 4.1% year over year.Although the PCE showed a decreasing year-over-year change, it grew 0.2% month over month. I am still waiting for either the CPI or PCE (both inflationary indexes) to show a trend of month-over-month decreases before considering a true pause in the Fed’s rate hikes. We’re not there yet, but we are getting closer.The other thing that the Fed wants to see is a weaker labor market. They want to see unemployment tick up higher and don’t want to see an increase i...
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By Christopher Pataki, Hockessin Delaware Real Estate
(RE/MAX Associates)
You may have seen headlines recently discussing the rise in foreclosures in the housing market if you've been following the news. You might still be unsure about this, especially if you're thinking about purchasing a home. In order to know the truth about what is happening right now, it is crucial to comprehend the context of these reports.Foreclosure filings are up 8% from a year ago and 2% from the previous quarter, according to a recent report from property data provider ATTOM. Despite the fact that this increase is the subject of media headlines, focusing only on the number may cause consumers to worry that prices will fall. In spite of the data showing an increase, the market is not headed toward a foreclosure crisis.To compare this to prior years, let's take a context-rich look at...
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By John Lake, Cape Cod and Sarasota Mortgage Banker
(Shamrock Home Loans)
A lot has happened since we spoke to the rate market. Here is a recap. The GoodFederal Reserve Meeting increase of a .25 What was good about it is we knew it was coming and it was priced in, however the Q&A after looks like the Fed is done for a while based on economic data.PCE was good but not great The BadGDP Gross Domestic Product was better than expected. Proves the economy is resilient.Jobless claims and continuing claims fell. Shows employment is strong.Durable Goods orders rose.European Central Bank increased their rate also by .25% BUT Christine Lagarde signaling a pause because she doesn’t want to break anything in the economyJapan loosed their Treasury grip increased their tolerance (almost like easing here)Weak 7 Year bond auction The last 2 caused a big swing to the upside i...
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By George Thoma, Mortgage Broker
(Kamaaina Mortgage Group Inc.| Equal Housing Lender, NMLS 1276471 - NMLS 312260)
Ho’okipa, a Beach Park, is located on Maui's North Shore alongside the Hana Highway. This beach has the most epic things on it. Hookipa means hospitality in Hawaiian, and this place is hospitable for wave riders as it is the most renowned windsurfing spot in the world. The windsurfing competitions are held here too.The beach has picnic facilities and observation decks for visitors. The consistent strong winds on this beach make it ideal for surfing and kiting. Waves are well-shaped, are largest during winter and smaller in the summer, and break across a system of reefs extending across the bay.  The most spectacular waves at Ho’okipa hit during wintertime, and these waves reach a height of 10 to 15 feet. Due to the spectacularly large waves, Ho’okipa is a tourist attraction in Winters. ...
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By John Meussner, #MortgageMadeEasy Fair Oaks, CA 484-680-4852
(Mortgages in AZ, CA, CO, DE, FL, GA, IN, MD, MN, MT, NC, NJ, NV, OK, OR, PA, SC, SD, TN, TX, UT, VA, WI)
The Fed has once again hiked the Fed funds rate, this time with a .25 hike announced today.  This brings the Fed rate to 5.5%, the highest level in 22 years, signaling tighter credit, more expensive borrowing, and more pressure on banking profitability as the Fed continues to wage war on inflation.The Fed rate hike is a move to increase the Fed funds rate - that is, the rate at which banks borrow from the Fed and each other - and not the rate borrowers/consumers pay.  When the Fed raises their rate, it's a move designed to curb inflation by restricting the movement of money and borrowing.  The move has a direct impact on financial vehicles tied to the 'Prime' rate - so your financial vehicles with an interest rate of "prime +/-" (think credit cards, home equity lines of credit) will see...
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By MichelleCherie Carr Crowe .Just Call. 408-252-8900, Family Helping Families Buy & Sell Homes 40+ Years
(Get Results Team...Just Call (408) 252-8900! . DRE #00901962 . Licensed to Sell since 1985 . Altas Realty)
Who doesn't enjoy winning a prize, especially cash money? Many of us fondly remember seeing TV commercials of Ed McMahon ringing the doorbell and handing a surprised winner a giant cardboard "check" for $1,000,000 from Publishers Clearinghouse.Sadly, scammers are preying upon unsuspecting victims via phone, email, Facebook, Twitter and other social media sites. One just contacted me today.Know that their goal is to get the mark (victim) to either1) Give enough personal and financial information that the scammer can access and clean out one's bank account(s)2) Motivate the them to send gift cards or Western Union funds needed to "cover taxes and fees" to claim the bogus cashiers check. The cashiers check may look valid but it is a fake, causing the victims incur fees with overdrafts due ...
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By Bill Salvatore - East Valley, Realtor - 602-999-0952 / em: golfArizona@cox.net
(Arizona Elite Properties )
What does time cost, apparently a lot! We have all seen those social media posts about buying now at a higher rate and lower price, then refinancing down the road. Date the Rate, Marry the Home. or It’s Your Forever Home Not Your Forever Loan! It’s very true. I want to point this out with some data. Rates. We all are looking at inflation and job data and what the Federal Reserve is doing. SNAILS MOVE FASTER! Good news Inflation has come down from June 2022 high of 9% to last reading of 3%. The Federal Reserve’s goal is 2% year over year.  We are close! Bad news We are creating jobs and there are more people working which pumps money into the economy. This is the lagging number that keeps the Federal Reserve increasing rates. Making mortgage rates volatile and we see them moving, up and...
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By John Lake, Cape Cod and Sarasota Mortgage Banker
(Shamrock Home Loans)
What does time cost, apparently a lot!We have all seen those social media posts about buying now at a higher rate and lower price, then refinancing down the road. Date the Rate, Marry the Home. or It’s Your Forever Home Not Your Forever Loan! It’s very true. I want to point this out with some data. Rates. We all are looking at inflation and job data and what the Federal Reserve is doing. SNAILS MOVE FASTER! Good news Inflation has come down from June 2022 high of 9% to last reading of 3%. The Federal Reserve’s goal is 2% year over year.  We are close!Bad news We are creating jobs and there are more people working which pumps money into the economy. This is the lagging number that keeps the Federal Reserve increasing rates. Making mortgage rates volatile and we see them moving, up and do...
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By Christopher Pataki, Hockessin Delaware Real Estate
(RE/MAX Associates)
You might be interested in knowing what the future holds for mortgage rates if you monitor them because you are aware of how they affect your borrowing costs. This question can't be easily answered because mortgage rates are notoriously difficult to predict.   The relationship between the 30-Year Mortgage Rate and the 10-Year Treasury Yield, however, has historically been a good predictor of what will happen with rates. Here is a graph depicting those two figures ever since Freddie Mac began compiling data on mortgage rates in 1972:  According to the graph, historically, the difference between the two over the previous 50 years was 1.72 percentage points, or 172 basis points. Mortgage rates typically increase in response to rising Treasury Yields, as can be seen by looking at the trend ...
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By Joe Jackson, Clintonville and Central Ohio Real Estate Expert
(Keller Williams Capital Partners Realty)
Stay one step ahead of unexpected tax increases with our enlightening blog. Gain valuable insights on navigating changing tax regulations, understanding deductions, and optimizing your financial strategies. Don't let surprises impact your finances – be proactive and ensure a secure financial future with year-round tax planning.Have a super fantastic week!Joe Jackson, Realtor-KWCP Proper tax planning is a crucial aspect of financial management that you should be addressing throughout the year. Waiting until April to assess your tax liability is a risky move. To ensure you keep more money in your pocket, it's essential to be aware of factors that can unexpectedly raise your taxes. Today we will explore five key factors that could potentially increase your tax owed at the end of the year. ...
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By Matt Brady, One of San Diego's Best Lenders
(Watermark Capital)
We have an important week ahead of us. The Fed is meeting this week and announcing its rate decision on Wednesday. Markets are betting that there will be close to a 100% chance of a 25bp rate hike. Housing data last week showed signs of slowing from the month before. Economic indicators are lower than the month before. The Fed is still increasing rates after their fakeout pause last month. I think we are getting closer to a breaking point, however, if there is one thing I know the Fed is good at, it is kicking the can down the road.As long as the Fed rate is this high, they always have ammunition to fight a recession. During recessionary periods the economy contracts, consumers spend less and the velocity of money (money circulating throughout the economy) slows. When the Fed decides to...
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By Brian Madigan, LL.B., Broker
(RE/MAX West Realty Inc., Brokerage (Toronto))
Commercial Bond Yields CMB 5 Year - 4.10%CANHOU 06/15/28 [-]   ‌ 10 Year - 3.92%CANHOU 06/15/33 [+0.01%]         * denotes interpolated rate GoC 5 Year - 3.83% CAN 03/01/28 [+0.01%]   ‌ 10 Year - 3.44% CAN 06/01/33 [+0.02%]   ‌ 15 Year - 3.45%* Est. 12/01/38 [+0.02%]   ‌ 20 Year - 3.41%* Est. 12/01/43 [+0.03%] GOC Bonds are for reference purposes only Floating rate insured cost of funds 5.06% [-]                   Prime Rate 7.20% [-]    
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By John Lake, Cape Cod and Sarasota Mortgage Banker
(Shamrock Home Loans)
LET’S GET BACK TO NORMAL.Good morning everyone, as we begin a new week, we find the markets returning to what we now consider normal. If you had shut down the Friday before the 4th of July and went on vacation until Friday July 14th you would have thought “Nothing much happened while I was away”.  We find ourselves today two weeks past the couple of the economic reports that had a major impact on the rate market. Then we got inflation reports that helped turn that around.The market today is better than it was on that Friday before the 4th! So, what do I tell my clients?DON’T GIVE UP THE FIGHT! Rates are volatile, this proves it. Peaks are not as high, and valleys are getting lower. Inventory is declining, and so are days on the market. Here in our market buyers have flexibility and opti...
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By Michael Sikorski MBA CRB GRI CRS, Experience And Professionalism You Can Count On
(RealtyOne Southwest Florida)
One of the more serious issues you must face when managing the Estate of the decedent is dealing with a bank or mortgage lender who has a mortgage on the property associated with the Estate.It is assumed that once an Estate has been opened that all legal action against the Estate stops until the Estate is closed. It does not. In fact, banks/mortgage lenders have been known to use the Due on Sale clause contained with the mortgage to begin a property foreclosure once they know the owner/debtor of the property has passed away. Fortunately, that only happens on the rarest of occasions. However, when a mortgage loan is delinquent, the bank/mortgage lender does not have to wait for the Estate to be closed for their attorneys to begin foreclosure against the property. When a mortgage loan bec...
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