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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 Anna Chroscicki, Realtor - St. Lucie County affordable Real Estate
(Re/Max Masterpiece Realty)
 When a lender pulls a buyer’s credit report, the credit agencies (Equifax, TransUnion, and Experian) sell the buyer's contact information to other mortgage companies; these are called “trigger leads.”  The buyer’s information is immediately sent out to these mortgage companies. Buyers start getting phone calls and emails within 30 minutes of pulling their credit.  The contact information the credit agencies give out is information they have on record, not the information we input on the mortgage application.  Unfortunately, this is a legal practice. The credit agencies are allowed to sell their contact information.  Some mortgage companies will even try to trick the buyers into giving them information by calling and stating they are “following up” on the mortgage application they submi...
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By Bob Elliot, 30+ Yrs Industry Experience
(eXp Realty)
Last week's release of CPI and PPI resulted in slightly higher than expected inflation rates which led to speculation that the Federal Reserve's decision to cut rates will likely come much further in the year than anticipated. There was some suspicion that if inflation rates would continue to exceed predictions, it could result in another rate hike. Lending partners have responded in kind with the first significant increase in lending rates since the end of November. However, The Federal Reserve will likely maintain its current stance. Other reports such as US Retail Sales are showing a drop, but this is contrasted by the Consumer Sentiment reports which show an opposite effect — with the economic landscape showing an overall declining inflation rate and strong job market.Consumer Price...
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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 what is meant by a jumbo loan. This type of loan is crucial in the real estate market, especially for buyers looking into higher-priced properties that exceed the limits set by conventional mortgages. A jumbo loan, also known as a jumbo mortgage, is a type of financing that exceeds the limits set by the Federal Housing Finance Agency (FHFA). Unlike conventional mortgages that are purchased by Fannie Mae and Freddie Mac and adhere to their set limits, jumbo loans are designed to finance luxury properties and homes in highly competitive local real estate markets. Key Characteristics of Jumbo Loans: Higher Loan Amounts: The primary feature of a jumbo loan is its ability to provide financing for a home that ...
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By Fred Sweezer Sr. CMI, LLC., HUD 203k Consultant
(Hud Certified 203K Consultant)
Many friends and family ask me all the time are you still working at 77 years old? the answer is YES! I just finished several renovation projects as a FHA Renovation 203k Consultant helping first time home buyers get there first home with this program. The physical labor part of it is left to my younger experienced consultants and Contractors that I have trained in the profession to be as skilled as I am in the construction industry. I love what I do, both as a family man and professional man. I have references.Fred Sweezer Srhttps://california203kconsultant.com/ 
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By Charles Stallions, 850-476-4494 - Pensacola, Pace or Gulf Breeze, Fl.
(Charles Stallions Real Estate Services )
Pensacola, Florida: With 28 years of real estate expertise spanning Pensacola, Pace, and Gulf Breeze, Charles Stallions, CSE (Certified Senior Expert), has been a trusted guide for countless seniors and their families. His seasoned assistance extends from navigating the complexities of Medicare to strategic tax reduction and asset sales. Don't miss out on invaluable insights—subscribe to his monthly newsletter now. Discover essential information tailored for those over 60, alongside crucial advice for your family members. Credit life insurance is a specialized type of insurance designed to provide financial protection for borrowers and their families in the event of the borrower's untimely death. This insurance is often associated with loans, including mortgages, and is specifically tie...
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By Charles Stallions, 850-476-4494 - Pensacola, Pace or Gulf Breeze, Fl.
(Charles Stallions Real Estate Services )
Purchasing your first home is an exciting milestone, but it often comes with a significant financial hurdle: the down payment. For many first-time buyers, scraping together enough money for a down payment can feel daunting. However, various sources of assistance are available to help ease the burden and make homeownership more accessible. Here are some avenues first-time home buyers can explore to secure their down payment: 1. Government Programs: FHA Loans: The Federal Housing Administration (FHA) offers loans with lower down payment requirements, typically around 3.5% of the purchase price. These loans are popular among first-time buyers because they have more flexible eligibility criteria. VA Loans: If you're a veteran or active-duty service member, you may qualify for a VA loan, whi...
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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 what is meant by variable interest rate. This type of interest rate is a key concept in the world of mortgages and lending, and understanding it is crucial for anyone considering a home loan or currently managing one.A variable interest rate, also known as an adjustable-rate, is an interest rate on a loan or mortgage that can fluctuate over time. Unlike fixed interest rates, which remain constant throughout the life of the loan, variable rates are tied to a benchmark interest rate or index that changes with market conditions. This means that your monthly payments can go up or down, depending on how the benchmark rate evolves.Variable interest rates are often lower than fixed rates initially, making them ...
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By Joseph Lorenzo, Your Law And Order Realtor
(Frank Rubi Real Estate LLC)
A VA Loan is a mortgage loan in the United States guaranteed by the United States Department of Veterans Affairs (VA). The program is for American veterans, military members currently serving in the U.S. military, reservists, and select surviving spouses (provided they do not remarry) and offers several advantages over traditional mortgages.Key benefits of a VA Loan include: No Down Payment Required: One of the most significant benefits is the ability to purchase a home with no down payment, making homeownership more accessible for many veterans. No Private Mortgage Insurance (PMI): Unlike conventional loans, where borrowers must pay PMI if they put down less than 20%, VA loans do not require PMI. This can result in substantial monthly savings. Competitive Interest Rates: The VA guarant...
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By Bob Elliot, 30+ Yrs Industry Experience
(eXp Realty)
For the brave men and women who have served in the armed forces, the dream of homeownership becomes more attainable and rewarding through the power of VA loans. We will discuss the unique features that make VA loans a tool for veterans, empowering them to secure homes with financial flexibility and favorable terms.No Down Payment: Breaking the BarriersVA loans stand out prominently by eliminating one of the most significant barriers to homeownership – the down payment. For veterans, this means the opportunity to own a home without the burden of accumulating a substantial upfront amount. The power of no down payment not only eases the financial strain but also accelerates the journey to homeownership.Competitive Interest Rates: Long-Term SavingsVeterans are not only exempt from a down pa...
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By Michael Mahoney, Boston Realtor
(Real Broker, LLC)
Deciphering Interest Rates and APR: Unveiling the Complete Picture of Borrowing CostsIn the realm of securing a mortgage, many homebuyers fixate solely on the interest rate, overlooking crucial aspects of borrowing costs. While the interest rate is pivotal, it doesn’t encapsulate the entirety of borrowing expenses. Enter the Annual Percentage Rate (APR), an equally significant metric often overlooked. Unlike the interest rate, the APR offers a more comprehensive view of borrowing costs. In this discourse, we’ll dissect the disparities between mortgage interest rates and APRs.See the full article on my web site
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By Bob Elliot, 30+ Yrs Industry Experience
(eXp Realty)
Next week is the release of Core CPI and PPI numbers for January, resulting in an extremely light week for the week. The only data release of note is the trade deficit and the usual unemployment reports. The current trade deficit for the U.S. is operating precisely within expectations and correlating GDP numbers. Next week will provide further guidance for the Federal Reserve as the next release of inflation data is released.U.S. Trade DeficitThe U.S. trade deficit rose slightly in December, but the annual gap still fell to the lowest level in three years and added to the economy's strong performance in 2023.Record deficits in 2021 and 2022, by contrast, acted as a big drag on gross domestic product, the official scorecard of the U.S. economy.Primary Mortgage Market Survey Index• 15-Yr ...
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By Charles Stallions, 850-476-4494 - Pensacola, Pace or Gulf Breeze, Fl.
(Charles Stallions Real Estate Services )
Homebuyers in Pensacola should understand the significance of private mortgage insurance (PMI), particularly with Charles Stallions, a 28-year real estate veteran, emphasizing its impact. Buyers often overlook PMI, necessitating awareness of the potential costs associated with putting less than 20% down on a home purchase.According to Freddie Mac, as of mid-December, interest rates on 30-year fixed-rate mortgages averaged 6.95%, representing a significant increase compared to rates from just two years prior. Despite projections indicating improvements in the housing market for 2024, many homebuyers will encounter an additional expense in the form of PMI.PMI is a critical aspect of homeownership that frequently catches first-time buyers off guard. Amidst the excitement of purchasing a ho...
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By Charles Stallions, 850-476-4494 - Pensacola, Pace or Gulf Breeze, Fl.
(Charles Stallions Real Estate Services )
Charles Stallions, CBR, CRS, is a local historian and real estate expert. Whether buying your first home, an investment property, or downsizing, do as the locals do; call or text Charles at 850-476-4494 and be well informed.  There are many rules and regulations when buying a home in Pensacola through a lender. For instance, your lender will want to know the origin of your down payment funds. If you're contemplating giving or receiving down payment assistance, here's a comprehensive breakdown of the standard rules and prerequisites.What Constitutes Down Payment Gifts? A down payment gift refers to money given to a buyer from another party to be used towards a down payment or closing costs during a home purchase. These gifts don't necessitate repayment.Gift Regulations and Documentation ...
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By Bob Elliot, 30+ Yrs Industry Experience
(eXp Realty)
Mortgage prepayment penalties are fees charged by lenders when borrowers pay off their mortgages before the agreed-upon term. These penalties are designed to compensate lenders for potential lost interest income and can significantly impact borrowers who want to pay off their mortgages early. Here's what borrowers should watch out for and how to avoid or mitigate prepayment penalties:Understand the Terms of Your Mortgage Agreement:Before signing any mortgage agreement, carefully review the terms and conditions related to prepayment. Look for information about prepayment penalties, including how they are calculated and under what circumstances they may apply.There are generally two types of prepayment penalties called hard prepayment penalties and soft prepayment penalties.Hard Prepaymen...
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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 what is meant by Refinancing. This financial strategy can be a game-changer for homeowners, offering opportunities to reduce monthly payments, shorten the term of a loan, or tap into home equity for large expenses.Refinancing involves replacing your existing mortgage with a new one, typically with different terms and a new interest rate. This process can lead to significant financial benefits, depending on your goals and the current economic climate. Homeowners might choose to refinance for several reasons: Lowering the Interest Rate: If interest rates have dropped since you took out your original mortgage, refinancing could reduce your monthly payments and the total amount of interest paid over the life...
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By Dan Dee McGinnis The Pumpkin Man, The Pumpkin Man
(HomeSmart)
Have you ever heard that statement before: Everything will be all right in the end? The remainder of that is if it is not all right it is not the end. That may be hard to believe, but when you really think about it, and look back at any of the bad things that ever happened to you or our country. Not agreeing with me right now, go with me a little farther. Look at your parents, your grandparents, they had some situations that were unbearable, negative, heartbreaking, but they got through them. Lets take a step farther. I am sure you believe in God, right? And you know God is in charge! What is going on right now in our country and in the world, God sees everything. And when God decides you, or I or a certain number of people in certain areas of the country or world have had enough, there...
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By Joe Jackson, Clintonville and Central Ohio Real Estate Expert
(Keller Williams Capital Partners Realty)
From understanding mortgage relief options to effective communication with lenders, this guide empowers homeowners dealing with injuries to safeguard their homes. Whether you're currently facing difficulties or proactively preparing for potential hurdles, discover actionable steps to steer clear of foreclosure. Arm yourself with knowledge and resilience in this insightful exploration of maintaining homeownership amid life's unexpected challenges.Have a super fantastic week!Joe Jackson, Realtor-KWCP Life can be unpredictable, and sometimes, unforeseen circumstances can throw us into financial turmoil. Imagine this: you've suffered a debilitating injury that not only affects your physical health but also puts a strain on your finances. Medical bills pile up, and you find yourself unable t...
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By Bob Elliot, 30+ Yrs Industry Experience
(eXp Realty)
The largest and most impactful financial data being released is as always the Federal Reserve rate decision. This time it fit well within the expectations across the broader market and lending partners, in that the Federal Reserve still remains to hold the current standing, and is showing push back on any potential rate cuts coming March when the next rate decision is planned. Most of the economic indicators from last year and this month have added fuel to the speculation that the Federal Reserve has largely met their goals and there is a strong upside pending rate cuts. The other rates of note are ISM manufacturing numbers, which have fallen in line showing growth at the start of the year. Consumer sentiment also has jumped to the highest levels in the last two and a half years.Federal...
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By Charles Stallions, 850-476-4494 - Pensacola, Pace or Gulf Breeze, Fl.
(Charles Stallions Real Estate Services )
It's time for Markets in a Minute! Here's your weekly look at what's happening with rate movement, the economy, and the housing market. The video will give you an overview, and if you want to dive a little further, click here. Average Long-Term Mortgage Rate Eases to 6.63%  Freddie Mac’s chief economist said rates will continue decreasing as inflation decelerates. Mortgage rates are at one of the lowest levels in a year.  Pensacola — The average long-term U.S. mortgage rate eased this week, welcome news for prospective homebuyers as the spring homebuying season approaches. The average rate on a 30-year mortgage fell to 6.63% from 6.69% last week, mortgage buyer Freddie Mac said Thursday. A year ago, the rate averaged 6.09%. Borrowing costs on 15-year fixed-rate mortgages, popular with ...
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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 what is meant by the term "principal." This financial term is fundamental in the context of mortgages and real estate financing, playing a crucial role in every homebuyer's journey.The principal is the original sum of money borrowed in a loan or the remaining balance of the loan, excluding interest. In other words, it's the core amount that you owe to the lender before any interest is added. When you make a mortgage payment, a portion of that payment is applied to reduce the principal, and the rest covers the interest charged by the lender.Understanding how the principal works is important for several reasons. Firstly, it affects your monthly payments; as you pay down the principal, the interest portion ...
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