Admin

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 Brian Madigan, LL.B., Broker
(RE/MAX West Realty Inc., Brokerage (Toronto))
Commercial Bond Yields CMB 5 Year - 3.18% CANHOU 12/15/29 [-0.08%]     10 Year - 3.60% CANHOU 12/15/34 [-0.07%]     Floating Rate insured cost of funds 4.71% [-]     Prime Rate 5.95% [-]     GoC 2 Year - 2.95% CAN 09/01/27 [-0.07%]     3 Year - 2.96% CAN 09/01/28 [-0.07%]     5 Year - 2.98% CAN 09/01/29 [-0.07%]     10 Year - 3.19% CAN 06/01/34 [-0.07%]     GOC Bonds are for reference purposes only * denotes interpolated rate
Comments 0
By John Lake, Sarasota and Cape Cod Mortgage Ba
(Shamrock Home Loans)
What happened to the low rates we were supposed to get???FEDERAL RESERVE CUTS RATES BY A HALF POINT!September 18th 2024Mortgages continue to bleed red ink on this Halloween day What’s going on? The Fed cuts rates by a half a point, mortgage rates party for about 2 weeks then crash! We have seen rates go up over a full point in the last 2 weeks. I WANT NAMES! WHO’S TO BLAME!The answer is inflation, jobs and the consumer! Inflation and the ConsumerTREAT: Based on the data the economy is strong!  3rd Quarter GDP was reported higher than expected. Consumer confidence is strong. The Consumer keeps spending. TRICK: Credit card debt is near all time highs. Personal savings is near all time lows. We have given back all we saved and charged all we’ve paid off since COVID. That bill will come due...
Comments 4
By Kathy Hyatt ~Plantation, Davie, Sunrise REALTOR, Broward Realtor Selling Plantation,Davie & Sunrise
(Remax Services)
Top 4 Factors to Consider When Choosing Your MortgageWith home prices and rates still relatively high, securing a mortgage can feel daunting––even to the most experienced borrowers. But don’t let that deter you: If other homebuyers’ experiences are any indication, odds are you’ll eventually find a home loan that works well for you. In fact, most U.S. homeowners say they’re satisfied with the mortgage they received, according to a recent Bankrate survey. The vast majority of the surveyed homeowners (69%) said they’d buy their current home again if they had a do-over.1 The key to finding the right home loan for you is to look for one that you’ll feel comfortable with long after you’ve closed on your new property. In addition to comparing term lengths and mortgage rates, also consider how ...
Comments 1
By Peter Kici EA, Enrolled Agent
(Tax Debt Relief Group)
When you think about your financial life, you likely don’t imagine the IRS and your state government working together. But here’s the truth: they're sharing information, and if you’re not paying attention, this connection could have serious consequences for your wallet.Here’s how it works: the IRS and state tax authorities exchange details on taxpayers in a mutual effort to catch errors, find fraud, and make sure everyone is paying their fair share. If you don’t report income on your federal tax return, it doesn’t just stay between you and the IRS. State tax agencies will know about it too. And vice versa: any misstep on your state tax return can flag issues that lead to a closer look at your federal return.Now, you might be thinking, “That’s only a problem for people who aren’t followi...
Comments 1
By Anne Edwards Johnson, Austin Realtor | HookemhomesATX (512)917-5260
(All City Real Estate)
CAUSE AND EFFECT SYNDROME  📉 New Jobless Claims: Initial claims unexpectedly fell, while continuing claims reached a 3-year high due to storms and the Boeing strike. 🔗 Effect: Labor market shifts could lower long-term yields, potentially easing mortgage rates if job growth slows. 🏠 Homebuyer Hesitancy: Buyer uncertainty around mortgage rates has pushed existing home sales to a nearly 14-year low. 🔗 Effect: High rates and buyer caution are slowing sales, but any rate relief could bring more buyers back into the market. 📊 Upcoming Jobs Report: October job growth is forecasted to slow, with 110,000 new jobs expected vs. 254,000 in September. 🔗 Effect: A weaker report might cool mortgage rates, though pre-election volatility could still influence them. 💸 Interest Rate Cuts: The Fed is likel...
Comments 3
By Manfred Lewis Leslie Horne & Associates, Realtor Spartanburg and Greenville SC
(Leslie Horne &Associates )
Saving up thousands of dollars for a down payment on top of paying for rent may feel like a daunting task, but chatting with an experienced real estate professional is a great way to figure out what you need to do to get homeownership-ready. You may be closer than you think!#realestate #realestateagent #fhm1021 #buying #selling #listreports #realestateexpert #financehub #homeowner
Comments 2
By John Meussner, #MortgageMadeEasy Fair Oaks, CA 484-680-4852
(Catalyst Mortgage)
Queue the scene in Adam Sandler's "Billy Madison", when adult Billy paces back and forth waiting for the school bus singing "back to school...back to school....". After 9 years building a career and entering the corporate mortgage world with Mason-McDuffie mortgage, this week, I made the jump to a new company - Catalyst Mortgage, based corporately in Roseville, CA, joining in the role of Executive VP of Production.  My primary role with Catalyst will be managing our sales teams and fine tuning our loan processes, working closely with loan officers, operations staff, and vendors, to maintain the best mortgage process in the business.   A lot of the work mirrors much of the work I did with MasonMac, so why the change? For me, opportunity - Catalyst is a much smaller company, which to me m...
Comments 9
By Jeff Masich-Scottsdale AZ Associate Broker,MBA,GRI, Arizona Homes and Land Group/ Buy or Sell
(HomeSmart Real Estate)
So what are the pros and cons of paying off a low mortgage rate loan early?Photo: Pros and Cons by Robin Higgins, PixabayPer, Julie Taylor, REALTOR.COM, October 14, 2024, "Practically every homeowner fantasizes about the day their house is finally paid off, and they can kiss those mortgage payments goodbye.However, a whopping 56.2% of Americans have an outstanding mortgage with a rate of 4% or lower.When your mortgage rate is so low, does it make more sense to pay off your house early or invest that money?We asked financial experts about the matter.Pros of paying off the houseHaving a low-interest mortgage is a badge of honor for some people, especially after the way rates have so dramatically fluctuated over the past few years. But even if you have a mortgage rate low enough to give yo...
Comments 6
By KAREN SANCHEZ, ...Marketing your home like no one else will.
( Reputable Realty)
Do you need a hand with to get into a home?  Do you have all your funds but want to see if you qualify for a grant?You may want to consider checking out the following resources after you call me or your other favorite Realtor, we might know something that is new and current.California Association of Realtors has a resource.  Put in a possible address and see what resources pop up.https://www.car.org/marketing/clients/downpaymentresourceCheck out USDA to see if the home you are looking at qualifies for a no down payment option. https://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do. See how it's got the .gov on it?  You want to make sure you are on the government site of you will be on a lender site.  Some cities have special programs,  they are normally crazy hard to qualify ...
Comments 6
By Charles Stallions, 850-476-4494 - Pensacola, Pace or Gulf Breeze, Fl.
(Charles Stallions Real Estate Services )
Real Estate Wire Fraud: Verify Verify Verify  Homebuyers fall victim to real estate wire fraud, partly due to lax cybersecurity and the complicated sales process. Many never recover their money. Pensacola—Tim Myers was about to close on a home in Fort Wayne, Indiana, when the email he’d been expecting popped into his inbox. His mortgage loan officer sent wire instructions for his down payment and a request to send the money within the next few hours. Myers and his wife went to their Flagstar branch and wired $34,000 to a Bank of America account. Everything seemed fine – until the next day, when the title company handling the closing sent instructions for wiring the down payment through a secure portal. Myers called the company to say he had already sent the money. Then came the awful ne...
Comments 1
 Interest Rates:  Since the Fed lowered the Fed Funds rate ½% last month we have had mortgage rates climb about ½%.  About half of that move up was from Friday’s employment report that surprised the market with mostly good news on the employment front. If you have ever read any of my letters you should know that Good News is Bad news for interest rates.  There is a bit of a bright side to this. A few Fed Governors have come out and said they still see a need to lower rates and some have even said they are not confident the employment report is accurate, more of a blip on the radar.  Additionally, there is some historic precedence. If you look at the 10yr Treasury has almost always gone up about 3/8ths of 1 percent after the first cut in a cycle. As of today, we are up 0.36% on the 10yr ...
Comments 4
By Matt Brady, San Diego's Equity Advisor
(Watermark Capital)
As we know, the Fed cut rates for the first time in over 4 years. It was larger than I had expected at 50bps. Since then, however, the market has bounced higher. I mentioned this would happen in a "buy the rumor, sell the news" type of event. The market aggressively priced in a rate cut, when the Fed actually did it, they readjusted their bets and pushed rates higher. Take a look below (cut rates on highlighted portion): Nothing sprints without a break. We have been in a downtrend since Spring. I believe we have a little higher to go before testing some resistance levels and then bouncing back down. The Fed has cut rates for the first time in years. This is the start of a regime change. We went from raising rates to pausing to now cutting. Once the market works its wiggles out, we will ...
Comments 0
By Brian Madigan, LL.B., Broker
(RE/MAX West Realty Inc., Brokerage (Toronto))
Commercial Bond Yields CMB 5 Year - 3.01% Est. CANHOU 12/15/29 [-0.03%]     10 Year - 3.46% CANHOU 12/15/34 [-0.04%]     Floating Rate insured cost of funds 4.89% [-]     Prime Rate 6.45% [-]     GoC 2 Year - 2.94% CAN 08/01/26 [-0.03%]     3 Year - 2.77% CAN 09/01/27 [-0.04%]     5 Year - 2.76% CAN 09/01/29 [-0.04%]     10 Year - 2.97% CAN 06/01/34 [-0.04%]     GOC Bonds are for reference purposes only * denotes interpolated rate  
Comments 2
By Manfred Lewis Leslie Horne & Associates, Realtor Spartanburg and Greenville SC
(Leslie Horne &Associates )
Often, when thinking about homeownership costs, buyers think of their main expense – their mortgage, and fail to go beyond that. It's important not to forget things like property taxes, HOA fees, insurance, etc. If you have questions about what costs to expect and prepare for I can help! Just send me a message. #thehelpfulagent #home #houseexpert #house #listreports #themoreyouknow #icanhelp #homeowner #a092524 #househunting #happyhome #finances #smartmoney #realestate #investment #realestateagent #realtor #happyhomeowners
Comments 0
By Robert Rauf
(CMG Home Loans)
You read that correctly.  Mortgage rates are higher now than before the Federal Reserve lowered interest rates last week.  First you have to understand how the market moves, especially the long end of the yield curve.  We have had HUGE improvements in rates since the high in fall of 2023 and all summer rates continued to improve in anticipation of the Fed Move on the 18th.Here's a pretty chart of how a 30yr Mortgage back security has been trading:That is the "price" of the 30yr Mortgage backed security, and it is an inverse relationship: Price up = Yield down. So we want to see the price climb, and you can see a nice run up in price (all that green is prices up). The arrow at the top of the chart is the day BEFORE the Fed moved, the red means the market sold off a little ahead of the fe...
Comments 0
By Linda Peltz, It's The Sold That Counts
(eXp Realty)
Reverse mortgages can be a game-changer for seniors looking to tap into their home’s equity while still maintaining ownership. Yet, despite its growing popularity, this financial tool is often misunderstood. Recently Dennis Keithly and Linda Peltz explore the core features of a reverse mortgage, how it works, and why it may be a beneficial option for those seeking financial flexibility. Lets tune in to video belowWhat Is a Reverse Mortgage?A reverse mortgage is an FHA-insured loan designed for homeowners aged 62 or older. Unlike traditional loans, where borrowers make monthly payments to pay off their mortgage, a reverse mortgage allows seniors to convert part of their home equity into cash. The key advantage is that the homeowner is not required to make any monthly mortgage payments. T...
Comments 0
By Endre Barath, Jr., Realtor - Los Angeles Home Sales 310.486.1002
(Berkshire Hathaway HomeServices California Properties)
This week’s Federal Reserve did a .50 basis point cut and sets the tone for lower mortgage rates!!  Now that has been the headline since the Fed Chairman announced the cut. If you listened to Federal Reserve Chairman Jerome Powell speech, you might have notice that he used the term “recalibrate” nine times during his question-and-answer session after the Federal Reserve cut rates.   What is the takeaway from this?  First and foremost, this interest rate cut had been telegraphed for quite some time and was already factored into the market. Hence it is a big to-do about nothing. Great for the Media and the Headlines.  Just to be clear, mortgage rates roughly track the direction of the 10-year treasury note, which is outside the direct control of the Fed. In fact, mortgage rates worsened a...
Comments 29
By John Meussner, #MortgageMadeEasy Fair Oaks, CA 484-680-4852
(Catalyst Mortgage)
Every time.  EVERY TIME.  Every time the Fed cuts rates, mortgage ads fly from everyone's social media pages - "NOW IS THE TIME TO REFINANCE!!".  The phones start ringing.  "HELLO, I SAW THE FED CUT RATES, WHERE ARE RATES NOW!?". There is perhaps no more confusing moment for the general mortgage marketplace than when the Fed cuts rates.  Naive (and inexperienced) loan officers offer up their oft-incorrect take, or their personal-gain position of "it means now's the time to refi!".  Realtors help spread the (mis)information, and the few, the proud, the Mar...I mean, the mortgage & real estate veterans, carry on knowing that what the Fed rate cut means isn't what most people believe it means. I'd like to clear up the misconceptions, and provide a factual take on what the Fed rate cut mean...
Comments 4
By Jeff Masich-Scottsdale AZ Associate Broker,MBA,GRI, Arizona Homes and Land Group/ Buy or Sell
(HomeSmart Real Estate)
This may be a good time to buy a home, between September 29 and October 5 historically. Why? Read on...Per Julie Taylor, Realtor.com Sep 12, 2024, "Mortgage rates tumbled from 6.35% to 6.20% for a 30-year fixed home loan for the week ending Sept. 12, according to Freddie Mac.“Mortgage rates have fallen more than half a percent over the last six weeks and are at their lowest level since February 2023,” Sam Khater, Freddie Mac’s chief economist, said in a statement. “Rates continue to soften due to incoming economic data that is more sedate.”For the past two weeks, rates lingered at their lowest point in more than a year before this week’s further downturn. Yet despite the rate decline, the U.S. housing market remains sluggish—but perhaps not for long.“We anticipate the marginal buyer wil...
Comments 5
By Peter Tamura, BANNOCHIE TEAM
(Coldwell Banker Select)
The idea of Yin & Yang is that opposing forces create balance/harmony. Pain and pleasure, night and day, sickness and health, good and evil, the moon waxes and wanes and so forth... The Chinese sage Lao Tse advocates the "middle way" avoiding extremes of one way or another.The two concepts I would like to explore as it pertains to real estate investing are cashflow and equity.There is a saying, "Cashflow is king, you can't eat Equity." It definitely starts with cashflow, calculating how much downpayment is required to have adequate cashflow for expenses. An unexpected expense that can't be covered by existing cashflow can cause a business to liquidate assets. Good examples are occasionally REITS and mutual funds that have to liquidate funds to cover redemptions. Although equity is a for...
Comments 0