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.


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Recent blogs on Lending / Financial
By Chris Goulart, California Hard Money Loans & Solutions
(All California Lending)
A private hard money second loan can be a valuable source of funding for businesses and investors in today's high interest rate environment. This type of loan is typically secured by real estate and is provided by private lenders, rather than traditional banks or financial institutions.  For investors looking to access cash in today's higher rate market, a California private hard money second may be the answer.One of the biggest advantages of a private hard money second loan is that it allows borrowers to keep their existing low rate loan in place. This is because the private lender providing the hard money second loan is only placing a lien on the property, rather than refinancing the entire loan. As a result, the borrower is able to retain their low rate loan and access the additional...
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By Bob Elliot, 20+ Yrs Industry Experience
(eXp Realty)
There is a common misconception that someone who is self-employed will not have the tax records or income necessary to qualify for a mortgage; however, that is not necessarily the case. In reality, if you are self-employed, there are a lot of home loan options available to you. It is true that it might require some additional paperwork and planning, but as long as you have the necessary information, you should be able to qualify for a mortgage. What Is Necessary To Qualify For A Self-Employed Mortgage Loan?If you are interested in taking out a mortgage when you are self-employed, you will be held to the same standards as everyone else. This means that the lender is going to require a solid credit score, a long credit history, a favorable debt-to-income ratio, and enough money to cover t...
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By Jeff Masich-Scottsdale AZ Associate Broker,MBA,GRI, Arizona Homes and Land Group/ Buy or Sell
(HomeSmart Real Estate)
Paradise Valley is the most expensive place to live in Arizona. When buying a home one will need a jumbo loan if not buying with cash. However there are usually some Owner May Finance homes available. Here are Paradise Valley homes for sale with Seller May Carry or Owner Financing next to Scottsdale Arizona and UPDATED DAILY on the MLS for the day that you are reading this. (Photo from Town of Paradise Valley website)Paradise Valley Arizona Estates with Owner Financing or Seller Carry Financing Assistance AvailableSee Paradise Valley homes for sale with Seller May Carry or Owner Financing on the MLS on FULL PAGE view and obtain your own FREE MLS SEARCH PORTAL in Arizona, creating your own filters, the most powerful home search tool availableHave you thought of purchasing a Paradise Vall...
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By Mike & Cindy Jones, Real Estate - (904) 874-0422 - Jacksonville, Fl
(Berkshire Hathaway HomeServices Florida Network Realty)
 There are many options when it comes to mortgages and deciding which one is the best fit for you and your upcoming home purchase can be difficult and downright confusing. In the video above I discuss the four main types of mortgage loan types, FHA, VA, USDA and conventional mortgages.Mike and Cindy Jones, Jacksonville Real Estate Agents, REALTORS904 874-0422MikeAndCindyJones.comBerkshire Hathaway HomeServicesFlorida Network Realty
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By Bob Elliot, 20+ Yrs Industry Experience
(eXp Realty)
Are you the type of person that struggles with remembering to pay their bills on time? You're not alone. People across the country regularly submit late monthly payments, inflicting terrible damage to their credit. Let's take a quick look at how paying your loan or other monthly payments late can have a negative impact on your mortgage. Your Credit Score Is At RiskAs you already know, almost all banks, credit cards, mortgage companies and other lenders rely on your credit score to help assess the risk of lending money to you. Paying any of your payments late – even something as small as your mobile phone bill or a department store credit card – can result in negative marks showing up on your credit report. If you are late enough times or fail to repay the late payment in full, then your...
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By Bob Elliot, 20+ Yrs Industry Experience
(eXp Realty)
If you are in the process of looking for a new home, you need to find the right one to meet your needs. Sometimes, you want to learn more about specific properties before you decide if it is right for you. As a result, a lot of prospective buyers will include contingencies in their home offers that may allow them to back out without losing their earnest money. What are a few examples of loan contingencies, and how can you use them to protect yourself during the process?  Examples Of Common Loan Contingencies Even if you have agreed on a purchase price for the house, the closing date is probably not going to be for one or two months. This will provide you with time to complete your due diligence and make sure no issues come up. For example, there may be a contingency that allows the clos...
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By Toby Barnett, Toby Barnett
(KW North Sound)
Did You Know an Investment Property Can be Purchased Using Owner Occupied Financing? As an example: a homebuyer can purchase a duplex, live in one side, and rent out the other using owner occupied financing. This is a great win for a homebuyer who wants to start in the real estate market as well as create instant income from a piece of property. You can benefit from the lower interest rate as an owner occupied without having to put 20% down as a traditional real estate investment. So, if you're looking to purchase a piece property as well getting an investment then look at a duplex so you can do both at the same time and capitalize on that low interest rate. Thanks for tuning into this video.
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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 Mortgage rates have been a hot topic in the housing market over the past 12 months. Compared to the beginning of 2022, rates have risen dramatically. Now they’re dropping, and that has to do with everything happening in the economy.     Nadia Evangelou, Senior Economist and Director of Forecasting at the National Association of Realtors (NAR), explains it well by saying: “Mortgage rates dropped even further this week as two main factors affecting today’s mortgage market became more favorable. Inflation continued to ease while the Federal Reserve switched to a smaller interest rate hike. As a result, according to Freddie Mac, the 30-year fixed mortgage rate fell t...
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By Charles Stallions, 850-476-4494 - Pensacola, Pace or Gulf Breeze, Fl.
(Charles Stallions Real Estate Services )
Mortgage rates have been a hot topic in the housing market over the past 12 months. Compared to the beginning of 2022, rates have risen dramatically. Now they’re dropping, and that has to do with everything happening in the economy.     Nadia Evangelou, Senior Economist and Director of Forecasting at the National Association of Realtors (NAR), explains it well by saying: “Mortgage rates dropped even further this week as two main factors affecting today’s mortgage market became more favorable. Inflation continued to ease while the Federal Reserve switched to a smaller interest rate hike. As a result, according to Freddie Mac, the 30-year fixed mortgage rate fell to 6.31% from 6.33% the previous week.” So, what does that mean for your homeownership plans? As mortgage rates fluctuate, they...
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By JoAnn Moore, Home Loans in Delaware
(The Mortgage Market of Delaware)
Understanding Mortgage Rate Buy Downs The 2-1 and 3-2-1 buy down terms have been popping up all over since interest rates increased last year. It is a great strategy allowing the new home owners to ease into a higher monthly payment. The sellers of the home provide funds to the buyer to be able to lower their housing payments during the first few years of their new mortgage. The rate can be bought down for one year which is a 1-0 buy down. The rate can also be bought down for 24 months where the payments are 2% lower in the first 12 month and 1% lower during the months 13-24.Most home loans allow the sellers to help with the buyers’ closing costs. The buy downs are considered closing costs.With a 2/1 Buy Down; with a full interest of 5.99%, the first 12 months would be calculated at 3.9...
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By Bob Elliot, 20+ Yrs Industry Experience
(eXp Realty)
Last week’s economic reporting included readings from the National Association of Home Builders on U.S. housing markets, and Commerce Department data on housing starts and building permits issued. The National Association of Realtors® reported sales of previously owned homes, and weekly readings on mortgage rates and jobless claims were also released. NAHB: Homebuilder Sentiment Rises in DecemberThe National Association of Home Builders reported increased homebuilder confidence in U.S. housing market conditions in December; this was the first time in 12 months that homebuilder confidence rose. Builder confidence in current housing market conditions rose by four points; builder confidence in home sales conditions over the next six months increased by two points. Builder confidence in pro...
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By Bill Salvatore - East Valley, Realtor - 602-999-0952 / em: golfArizona@cox.net
(Arizona Elite Properties )
Charles has an excellent blog here, worthy of our Re-Blog. Bill Great information.  Thanks for sharing, enjoy your weekend, and here's a GOOD LUCK to your favorite NFL Team! If you’re thinking about retirement or have already retired this year, you may be planning your next steps. One of your goals could be selling your house and finding a home that more closely fits your needs. Fortunately, you may be in a better position to make a move than you realize. Here are a few things to think about when making that decision. Consider How Long You’ve Been in Your Home From 1985 to 2008, the average length of time homeowners typically stayed in their homes was only six years. But according to the National Association of Realtors (NAR), that number is rising today, meaning many homeowners are liv...
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By Bob Elliot, 20+ Yrs Industry Experience
(eXp Realty)
The whole idea of investing is to use a portion of your money now to get more down the road. It is important for everyone to diversify their investments, and you might be thinking about buying a second house to do so. Investing in real estate is a goal that a lot of people have, but how can you get started? It was challenging enough to buy your first house, so how can you afford a second one? Use A Cash-Out Refinance To Buy Your Second HouseOne trick that many people overlook is that they can actually conduct a cash-out refinance to purchase a second house. In general, your lender will allow you to cash out up to 80 percent of the value of your home during a cash-out refinance. This can give you a tremendous amount of flexibility that you can use to purchase a second house. For example,...
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By Bob Elliot, 20+ Yrs Industry Experience
(eXp Realty)
Members of the military, their family members, and veterans have access to a unique mortgage option called a VA loan. This can be a strong option because it provides borrowers with an opportunity to purchase a house for less than 20 percent down. While not everyone is eligible for a VA loan, there are a lot of people who are wondering, are VA loans assumable? There are a few key points to keep in mind. What Is An Assumable Loan?An assumable loan means that the buyer is essentially going to take over the mortgage held by the seller. Essentially, this means that the buyer is going to take over the remaining balance of the loan as well as the interest rate attached to that loan. The buyer will have to compensate the seller for any equity the seller has already accumulated. This means eithe...
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By Anna Chroscicki, Realtor - St. Lucie County affordable Real Estate
(Re/Max Masterpiece Realty)
Anna Chroscicki with RE/MAX MasterpieceFor answers to your Real Estate questions: Visit www.annasellsrealestate.com or call/text  772-485-4188
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By Dennis Dahlberg Broker/RI 623-582-4444
(Level 4 Funding )
 Private hard money lenders are the most important people to establish relationships with within the real estate industry – at least if you want to run a sustainable business. Whether you are a new real estate investor or a seasoned veteran, chances are you will want to scale your business sooner rather than later. However, volume isn’t contingent on skill; you must bring something else. There is one more piece to the puzzle that every successful real estate investor must find on their own: funding. Any hopes of completing more deals would depend on building relationships with those with the necessary capital. There are exceptions, of course, but private hard money lenders are a critical component of any real estate investor’s arsenal.Private hard money lenders are integral to the growt...
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By Dennis Dahlberg Broker/RI 623-582-4444
(Level 4 Funding )
 Many new investors fret over how they will find Arizona hard money lenders to get moving on their project financing. But here are a couple of simple ways to approach this:REIA or MeetUp Meetings: Often, hard money lenders will speak at local real estate events. If not, ask fellow members if they know any trustworthy lenders.Real Estate Agent or Traditional Lender: Ask that realtor, or mortgage broker, in your real estate network if they know a hard money lender you could do business with.Google “Hard Money Lender”: Be careful; some unscrupulous individuals are out there. Be sure to ask for references and talk to fellow investors to get their opinion.Working With Hard Money LendersWorking with Arizona hard money lenders will be somewhat different than going through a traditional bank fo...
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By Philip A. Raices, 1 of the Most Knowledgeable Brokers on the Net!
(Turn Key Real Estate)
  By Philip A Raices - January 16, 2023 0   Unfortunately, we are again approaching our debt limit. Since 1960, Congress has acted 78 times to consider either temporarily extending or permanently increasing the debt limit or revising the meaning of the debt limit; 49 times under Republican presidents and 29 under Democratic presidents. Janet Yellen the secretary of the Treasury, sent a letter to Congress on Jan. 13 that our current U.S. debt limit was raised to $31.381 trillion on Dec. 16, 2021, and will be reached on Jan. 19, 2023, which will be 138% of GDP. In 2013 it was 100% of the GDP.The pandemic caused a liquidity crunch with the excessive (virtually created) $8 trillion infused into the market (but not printed). I have read recently that increasing the money supply doesn’t cause...
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By Bob Elliot, 20+ Yrs Industry Experience
(eXp Realty)
Last week’s financial reporting was dominated by readings on inflation. Weekly reports on mortgage rates and jobless claims were also released and Treasury Secretary Janet Yellen cautioned lawmakers that the debt ceiling must be raised or eliminated. Inflation slows in DecemberMonth-to-month inflation slowed by -0.1 percent in December and matched analysts’ expectations. This was the first slowing of inflation since the pandemic and the highest inflation reading since inflation reached its highest level in 40 years. Inflation rose by 0.1 percent in November. Year-over-year inflation rose by 6.5 percent, which matched expectations, and fell short of the November reading of 7.1 percent inflation.Consumer prices fell for the sixth consecutive month in December. Core inflation, which exclud...
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By Sandy Sills, Associate Broker
(Preferred Real Estate Brokers)
Think Twice Before Waiting for 3% Mortgage Rates Last year, the Federal Reserve took action to try to bring down inflation. In response to those efforts, mortgage rates jumped up rapidly from the record lows we saw in 2021, peaking at just over 7% last October. Hopeful buyers experienced a hit to their purchasing power as a result, and some decided to press pause on their plans. Today, the rate of inflation is starting to drop. And as a result, mortgage rates have dipped below last year’s peak. Sam Khater, Chief Economist at Freddie Mac, shares: “While mortgage market activity has significantly shrunk over the last year, inflationary pressures are easing and should lead to lower mortgage rates in 2023.” That’s potentially great news if you’re a buyer aiming to jump back into the housing...
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