Special offer

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 Bob Elliot, 30+ Yrs Industry Experience
(eXp Realty)
With the first FOMC minutes of the year, it sets the tone of the potential moves the Federal Reserve will make, with them remaining firm in their current stance of not employing any rate cuts, however given the more recent end of year reports, there is a likelihood that rate cuts will start this year. The last change in rates was in July of last year. The second most important report also being the final PMI (Manufacturing) numbers, which has largely met expectations without any irregularities.S&P Global US Manufacturing PMIManufacturing PMI was revised lower to 47.9 in December 2023 from a preliminary of 48.2, and compared to 49.4 in November, pointing to a bigger deterioration in manufacturing conditions.FOMC MinutesAccording to the minutes, several officials said that the Fed might h...
Comments 0
By Will Hamm, "Where There's a Will, There's a Way!"
(Hamm Homes)
It's a Month for Dollars and Sense January's not just a time for recovering from the holiday season...it's also Financial Wellness Month. Now is an ideal time to take stock of your own 2024 budget and perhaps share some tips with your network on how to improve their financial wellbeing. Here are some strategies to consider and share: Create a detailed budget. You can't manage what you don't measure, so be sure you're tracking your income and expenses and setting spending limits. If you followed a budget last year, it's time to review and tweak if needed. A plethora of apps and online services are available to help with your budgeting needs. Pay off high-interest debts if possible. Debts with double-digit interest rates, such as carried credit card balances, can be a financial drain. If...
Comments 9
By Bob Elliot, 30+ Yrs Industry Experience
(eXp Realty)
Home flipping – a journey that transforms neglected fixer-uppers into profitable investments. If you're considering entering the real estate game or looking to enhance your flipping skills, you've come to the right place. Let's explore some tried-and-true strategies that can help you turn those distressed properties into lucrative ventures.Thorough Research and Analysis:Before making any investment, it's crucial to conduct extensive research. Identify emerging neighborhoods, assess market trends, and understand the potential resale value of the property. Look for fixer-uppers in areas where property values are on the rise, ensuring a higher return on investment.Create a Realistic Budget:One of the keys to successful home flipping is careful budgeting. Account for all potential expenses,...
Comments 1
By Laura Sellers, www.AuburnOpelikaALRealEstate.com
(Berkshire Hathaway HomeServices Preferred Real Estate, Inc.; www.AuburnOpelikaALRealEstate.com)
What Is a Non-arm’s Length Transaction?Learn the differences between arm’s length and non-arm’s length real estate transactions. It’s not merely about the exchange of property; there are nuances you must understand in order to navigate these waters wisely. Uncover more in this recent #GTK blog post.#BHHS #BHHSRealEstate #NonArmsLengthTransactions #BHHS #BHHSRealEstate #Homebuying #InvestingOpportunities #MortgageRatesFor more information please visit my website.
Comments 0
By Kimo Stowell, REALTOR Associate® RS-76763 - Honolulu Hawai'i
(HI Pro Realty LLC RB-21531 )
               Latest rates, based on 20 percent down, $200,000 owner-occupant mortgages. The rates and terms may vary; check with lenders for details. Rates may have changed click here to verifyWednesday, January 3, 2024  Lender Term/Type Interest Rate % Points % *APR Aloha Pacific Federal Credit Union808-531-3711NMLS#377314 15-YR Fixed 5.875 2.000 6.173 30-YR Fixed 6.000 1.625 6.264 5-YR ARM 5.875 0.750 6.053 American Savings Bank808-593-1226NMLS#423168 15-YR Fixed 5.125 2.000 5.559 30-YR Fixed 5.875 2.000 6.144 5-YR ARM 5.625 1.750 7.042 Bank of Hawaii877-616-2636 15-YR Fixed 5.875 1.000 6.032 30-YR Fixed 6.000 2.000 6.189 5-YR ARM 6.000 1.000 7.221 Central Pacific Bank808-544-0500NMLS#416603 15-YR Fixed 5.500 1.875 5.931 30-YR Fixed 6.000 1.875 6.265 5-YR ARM 6.750 0.000 7.747 Finan...
Comments 0
By Laura Sellers, www.AuburnOpelikaALRealEstate.com
(Berkshire Hathaway HomeServices Preferred Real Estate, Inc.; www.AuburnOpelikaALRealEstate.com)
FHA (Federal Housing Administration) requirements play a crucial role in determining eligibility for mortgage loans, particularly for those seeking government-backed financing. These requirements are designed to make homeownership accessible to a broader spectrum of individuals, including first-time homebuyers and those with moderate income.Navigating FHA requirements is a crucial step for potential homebuyers. Understanding these criteria can empower individuals to make informed decisions as they pursue the dream of homeownership.#FHARequirements #HomeLoan #MortgageQualification #HomeownershipJourney #RealEstateFinanceFor more information please click here.
Comments 1
By Bob Elliot, 30+ Yrs Industry Experience
(eXp Realty)
With the New Year, the final week only featured the normal reports of Jobless Claims, S&P Shiller Home Price Index (YoY), and the Chicago Business Barometer. All of them will have limited impact compared to the GDP and the Inflation data reports that have already been released.S&P Shiller Home Price Index (YoY)For the ninth consecutive month, home prices in prominent U.S. metropolitan regions have surged, reaching an all-time high. This increase is attributed to an ongoing shortage of available homes for sale. In October, the S&P CoreLogic Case-Shiller 20-city house-price index, after seasonal adjustments, showed a 0.6% rise compared to the preceding month.Chicago Business BarometerThe Chicago Business Barometer, also known as the Chicago PMI, fell 8.9 index points to 46.9 in December.E...
Comments 0
By Bob Elliot, 30+ Yrs Industry Experience
(eXp Realty)
Real estate investing has long been considered a lucrative venture, but the common misconception is that it requires a substantial amount of capital to get started. In reality, numerous strategies allow beginners to dip their toes into the real estate market with minimal funds. We will guide aspiring investors on how to start their real estate journey with little money and build a solid foundation for long-term success.Educate YourselfBefore venturing into real estate investing, it's crucial to acquire knowledge about the market, different investment strategies, and potential risks. Utilize online resources, attend local real estate seminars, and read books authored by successful investors. Understanding the basics will empower you to make informed decisions, especially when dealing wit...
Comments 1
By Jessica Hood, REALTOR®, The Roskelly Team - Fort Meade Area Real Estate
(The Roskelly Team)
As real estate agents, staying up to date with market trends is an important part of providing the best service to our clients. One of the biggest factors influencing the real estate market in Anne Arundel County Maryland is interest rates. In this blog post, we'll provide an overview of what interest rates looked like in 2023 and offer some insights into what the 2024 predictions hold for interest rates.Let's begin by taking a look at how interest rates evolved in 2023.As shown in the chart above, interest rates in 2023 followed a gradual upward trajectory before dropping in December. This trend was influenced by several factors, including the Federal Reserve's commitment to normalizing monetary policy, rising inflation concerns, and the overall economic recovery. Despite the increases...
Comments 2
By Bob Elliot, 30+ Yrs Industry Experience
(eXp Realty)
The final release of the GDP figures are the last large releases of the year before moving into Q1 of 2024, with the GDP report showing the economy had shown growth — particularly in Q3 with it tapering off by the end of the year. While the growth had been strong, it still was less than expected by analysts, however the final numbers do indicate we are on a track for a soft-landing and with the potential to all-together avoid a potential recession. The only other reports of note were the Personal Spending and PCE Index Prices.GDP 2023 (Final)The U.S. economy expanded at a revised 4.9% annual pace in the third quarter, a surprising burst of growth that appears to have tapered off at year’s end.Growth of gross domestic product, the official scorecard for the economy, was reduced from a pr...
Comments 1
By Bill Salvatore - East Valley, Realtor - 602-999-0952 / em: golfArizona@cox.net
(Arizona Elite Properties )
Navigating FHA Loans with Credit Challenges: A Brief Guide to Approval and Credit Improvement Securing a Federal Housing Administration (FHA) loan can be a viable option for individuals facing credit challenges who aspire to own a home. While FHA loans are known for accommodating lower credit scores, there are still certain criteria to meet. This brief overview provides insights into obtaining an FHA loan with credit problems and outlines steps to improve your credit for a better chance of approval. Can You Get an FHA Loan with Credit Problems? Yes, it's possible to secure an FHA loan even with credit problems. Unlike traditional mortgages, FHA loans are designed to be more accessible, offering opportunities for individuals with lower credit scores or limited financial resources. The F...
Comments 1
By Laura Sellers, www.AuburnOpelikaALRealEstate.com
(Berkshire Hathaway HomeServices Preferred Real Estate, Inc.; www.AuburnOpelikaALRealEstate.com)
Navigating FHA Loans with Credit Challenges: A Brief Guide to Approval and Credit ImprovementSecuring a Federal Housing Administration (FHA) loan can be a viable option for individuals facing credit challenges who aspire to own a home. While FHA loans are known for accommodating lower credit scores, there are still certain criteria to meet. This brief overview provides insights into obtaining an FHA loan with credit problems and outlines steps to improve your credit for a better chance of approval.Can You Get an FHA Loan with Credit Problems?Yes, it's possible to secure an FHA loan even with credit problems. Unlike traditional mortgages, FHA loans are designed to be more accessible, offering opportunities for individuals with lower credit scores or limited financial resources. The FHA s...
Comments 1
By Chris Dunham, The Real Estate Guy™
(Brokers Hub Realty)
First time buyer programs making a comeback in 2024How do you find grants to purchase a home? Grants often time, seem to good to be true, but in my 25 years of building wealth for those owning homes, I have used a ton of different programs for both first time buyers and those on their second purchase. When I discuss home buying grants, it's basically tied to the down payment aspect, so these are mostly driven by FHA - across this amazing country of ours, there can be up to 2500 programs at a time. Obviously, many are going to be tied to specific cities and states.  Some of these programs are true grants, which never have to be repaid, while others are "loans" but never have to be repaid as they are deemed "forgivable loans".DPA or "Down Payment Assistance" programs often exist to help f...
Comments 0
By Charles Stallions, 850-476-4494 - Pensacola, Pace or Gulf Breeze, Fl.
(Charles Stallions Real Estate Services )
While buying a home has always been a challenging milestone, today’s high-interest rates have made this dream even harder to achieve. By Kimberly Dawn NeumannOver the past two years, interest rates on home loans have nearly doubled from the 3% range to around 7% today. This tacks many hundreds extra onto the monthly housing expense, stretching some homebuyers’ budgets to the breaking point. And while there are ways to lower those costs, navigating the home loan process is extremely complicated—particularly for first-time homebuyers.“It’s very important for first-timers to do research and understand all their options before they start looking for a home,” says Cara Ameer, a real estate agent with Coldwell Banker licensed in California and Florida. “Doing your due diligence can help you a...
Comments 2
By Charles Stallions, 850-476-4494 - Pensacola, Pace or Gulf Breeze, Fl.
(Charles Stallions Real Estate Services )
"Mortgage rates have been all over the place here lately, reaching 20-year highs topping 7% near the end of last year and bouncing around unpredictably ever since. Given that even slight fluctuations in rates end up costing homebuyers hundreds of dollars a month, it’s understandable that buyers are paralyzed by indecision: should we buy or wait for rates to drop? Others are scrambling for any advice on how to stay ahead of the curve and keep their costs in check.To assist, we’ve compiled a few tactics from real estate expert, Charles Stallions and homebuyers on how to outsmart the turbulent tides of rising rates.While some methods might strike some as unconventional, you may find that they’re becoming increasingly common in today’s unpredictable real estate market. If you’re tired of ta...
Comments 0
By Charles Stallions, 850-476-4494 - Pensacola, Pace or Gulf Breeze, Fl.
(Charles Stallions Real Estate Services )
Imagine you're on the verge of securing a mortgage, and a slightly higher credit score could mean a lower interest rate. The good news? There's a quicker way to make that possibility a reality. Mortgage loans are often more time-sensitive than other loans. If you find yourself in a situation where a slightly improved credit score could open doors to better rates, the solution might lie in rapid rescoring.When it comes to mortgage loans, time is of the essence. Your offer has been accepted, and you have a limited window to qualify for a new loan. But what if there was a way to boost your credit score swiftly and improve your chances of securing a lower interest rate?Enter rapid rescoring ... a powerful tool that mortgage lenders use to diagnose potential actions that could lead to a cred...
Comments 1
By Bob Elliot, 30+ Yrs Industry Experience
(eXp Realty)
It's easy to get Private Mortgage Insurance (PMI) confused with homeowners' insurance, but PMI is an entirely different thing that may or may not be necessary when it comes to your home purchase. If you're going to be investing in a home in the near future and are wondering what PMI may mean for you, here are some things to consider regarding this type of insurance.Your Down Payment AmountIf you've been perusing the housing market for a while, you've probably heard that 20% is the ideal amount to put down when investing in a home; however, you might not realize why. The truth is that 20% down is the suggested amount because this will enable you to avoid having to pay PMI on the purchase of your home. In this regard, PMI is a protective measure for lenders since they may be taking on mor...
Comments 2
By Mike Russell, Overland Park Kansas Real Estate
(Mike Russell Real Estate Group)
So you want to build a new home, that is great news because building a new dream home can be one of the most exciting times of your life. But before you can build that home you will most likely need to arrange for financing, depending on the price and stage of construction you will have 3 options for financing your new construction home.See Available New Construction HomesBuilder financing - When builder financing is used, the builders generally take out a line of credit with a bank or lending institution to construct the home. This is very common with spec homes, these are home that the builder starts without having a buyer yet. The builder will budget the cost of this financing into the final price of the home. As a buyer you will most likely just apply for a mortgage in the same mann...
Comments 2
By Dick Betts, REALTOR® The Villages, Florida
(TOUCHSTONE REAL ESTATE)
I have been following interest rates closely as it has a huge effect on housing as we all know.  Using an example of buyers with a credit score around 800, applying for a 20% down loan the highest we have seen in 2023 was 8.125%.  I just checked with Ronda, my lender I work with closely and today she said 6.875% with no points which let me explain about points.Buying down points from current rate reduces the Principle & Interest which can significantly reduce your monthly payment. All lenders should give 3 options depending on the client. A “Par” rate (this means it is zero or close to zero cost for the rate. A lower rate which means you will pay points depending on the rate you chose these are called discount points).  Or you might consider going with a higher rate to get what’s called...
Comments 10
By Charles Stallions, 850-476-4494 - Pensacola, Pace or Gulf Breeze, Fl.
(Charles Stallions Real Estate Services )
Spring Home Buying: How to Prep Now You’re probably still finding Halloween candy wrappers in your dryer’s lint tray right now, so it’s hard to think about next year—unless, of course, you’re a Pensacola Home Buyer planning to buy a home in the spring. Then, March, April, and May are certainly on your mind. Traditionally, there have been advantages of buying a home in the spring. The warm weather is easier to navigate, and it's a bit less busy than summer, but the last three years in Pensacola's real estate cycle have been anything but traditional. Some spring home buying standards hold, but you’ll also need a lot more flexibility to find a home on the timeline you need.  If purchasing a home is on your to-do list next year, the time to start preparing is now. 1) Assess your finances.  ...
Comments 0