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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 Bob Elliot, 30+ Yrs Industry Experience
(eXp Realty)
Whether you're a first-time homebuyer or a seasoned homeowner considering a refinance, the term "escrow account" often looms as a source of confusion. Yet, understanding the ins and outs of escrow accounts is crucial for managing your homeownership responsibilities effectively. In this article, we'll address some common questions and concerns regarding escrow accounts to shed light on their importance and functionality.What is an Escrow Account?Escrow accounts, sometimes referred to as "impound" accounts, serve as a financial mechanism to facilitate the payment of property taxes and homeowner's insurance. Typically, lenders require homeowners to contribute a portion of these expenses upfront, which is then deposited into the escrow account for disbursement.Who Controls Escrow Accounts?L...
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By Bob Elliot, 30+ Yrs Industry Experience
(eXp Realty)
While it’s not a set deal, the Federal Reserve does appear to be on track for a June rate cut, and following its two-day policy meeting, the central bank’s rate-setting Federal Open Market Committee said it will keep its benchmark overnight borrowing rate in a range between 5.25%-5.5% until then. Additionally, the government has also avoided another shut down as a series of rushed bills had approved spending for the government by another 1.2 trillion dollars. This is good news for lending markets as the debt ceiling has previously tied up rate decisions in the past.FOMC Rate DecisionFederal Open Market Committee has stated it will maintain the current interest rate for central banks and will keep its benchmark overnight borrowing rate in a range between 5.25%-5.5%.Existing Home SalesThe...
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By Charles Stallions, 850-476-4494 - Pensacola, Pace or Gulf Breeze, Fl.
(Charles Stallions Real Estate Services )
In Pensacola, Florida, the average long-term U.S. mortgage rate has risen for the fourth consecutive week, presenting another setback for prospective homebuyers just as the spring homebuying season kicks off.According to mortgage buyer Freddie Mac, the average rate on a 30-year mortgage increased to 6.94% from 6.90% last week. A year ago, the rate averaged 6.65%. Currently, the average rate sits just below its peak since mid-December, when it reached 6.95%.As mortgage rates climb, they can significantly raise monthly costs for borrowers, limiting their purchasing power in a market that's already beyond the reach of many Americans. Moreover, they discourage homeowners who secured low rates two or three years ago from putting their homes on the market.In recent weeks, rates have been cree...
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By Joe Jackson, Clintonville and Central Ohio Real Estate Expert
(Keller Williams Capital Partners Realty)
Informative topic! Buying a home with loans from family and friends can be a viable option for some buyers. This blog likely explores the benefits and considerations of this approach, providing valuable insights for those considering this financing option. Thanks for shedding light on this alternative to traditional loans!Have a super fantastic week!Joe Jackson, Realtor-KWCP Seeking a home loan from a friend or family member can be challenging, even when you're close. The financial stakes are significant, and chances are you interact frequently, adding pressure to the dynamic. Rejection could strain your relationship. However, presenting a case that demonstrates mutual benefit can lead to a positive outcome. Approaching the Loan Request Thomas Fox, Cambridge Credit Counseling's communit...
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By Charles Stallions, 850-476-4494 - Pensacola, Pace or Gulf Breeze, Fl.
(Charles Stallions Real Estate Services )
When purchasing a home in Pensacola, Charles Stallions is your go-to realtor for expert guidance. A home represents the single largest purchase for most individuals, and in recent years, the cost of homes has significantly increased.For many, purchasing a home involves obtaining a mortgage, as few buyers can afford to pay in cash outright. Mortgages, secured by the property, facilitate home ownership, with the title transferring to homeowners upon full repayment.Mortgage 101: Thinking of financing, refinancing, or just needing to understand how the process works? It all starts here. We research whether it's a VA, FHA, conventional, or non-traditional loan for you. We can help simplify the process and remove the challenges.How to Get Mortgage Info and a FREE Credit ReportHowever, not all...
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By Bob Elliot, 30+ Yrs Industry Experience
(eXp Realty)
Choosing the right mortgage term is a critical decision when purchasing a home. The two most common options are 15-year and 30-year mortgage terms. Let's compare the advantages and disadvantages of each to help you make an informed decision:15-Year Mortgage Advantages:Interest Savings: The most significant advantage of a 15-year mortgage is the amount of interest you can save over the life of the loan. With a shorter term, you pay less interest because the loan is repaid more quickly.Faster Equity Building: Monthly payments for a 15-year mortgage are higher, but a larger portion of each payment goes toward the principal. This results in faster equity buildup, which can be beneficial if you plan to sell or refinance in the future.Lower Interest Rate: Generally, 15-year mortgages come wit...
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By Bob Elliot, 30+ Yrs Industry Experience
(eXp Realty)
Last week’s inflation data came in at a higher rate than expected, with Price Producer Index (PPI) numbers showing more than double the expected inflation gain.With both CPI and PPI being over the target, the steadfast certainty that the Federal Reserve will cut rates has now taken a step back, resulting in more tamed expectations for the near future. With a mixed response from lending partners, this may end up rapidly changing in the next round of discussions with the Federal Reserve's Chairman Jerome Powell this coming week, as well as a final rate decision.Consumer Price IndexConsumer prices matched the biggest increase in February in five months, leaving the yearly rate of inflation above 3% a week before the Federal Reserve meets again to consider when to cut interest rates. The co...
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By Bob Elliot, 30+ Yrs Industry Experience
(eXp Realty)
A mortgage escrow account, also known simply as an escrow account, is a financial arrangement set up by a mortgage lender to manage and disburse certain payments related to the property on behalf of the homeowner. The purpose of an escrow account is to ensure that essential expenses, such as property taxes and homeowners’ insurance, are paid on time.Here's how a mortgage escrow account works:Creation of Escrow Account: When you obtain a mortgage loan, your lender may require you to establish an escrow account. This account is typically separate from your mortgage loan account.Monthly Payments: As part of your monthly mortgage payment, you contribute a prorated amount toward property taxes, homeowners insurance, and, in some cases, private mortgage insurance (PMI). The total amount is di...
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By Matt Helganz
(Meridian Capital Real Estate)
Seeking a home loan from a friend or family member can be challenging, even when you're close. The financial stakes are significant, and chances are you interact frequently, adding pressure to the dynamic. Rejection could strain your relationship. However, presenting a case that demonstrates mutual benefit can lead to a positive outcome.Approaching the Loan RequestThomas Fox, Cambridge Credit Counseling's community outreach director, advises treating a private home loan request with the same seriousness as a bank mortgage. Before broaching the topic with a relative or friend, prepare a thorough plan or proposal."Borrowers must realistically assess their repayment capacity and avoid overborrowing. Treat it as any other loan and be practical," says Fox.It's essential to establish a formal...
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By Trish Cole
(Veterans United Home Loans of Puget Sound NMLS#1907)
When it comes to purchasing a home, understanding the array of financing options available is key. Among these options, government-backed mortgages stand out as a popular choice, offering accessibility to a diverse range of potential homebuyers. Let's delve into how these mortgages operate and why they present a valuable avenue for aspiring homeowners.What Exactly is a Federally Backed Mortgage?A federally backed mortgage is a type of home loan insured by a federal government agency, aimed at making homeownership achievable for individuals who may not qualify for conventional loans. These mortgages are crafted to mitigate risk for lenders by providing a government guarantee, ensuring lenders are compensated in the event of borrower default. This support enables lenders to extend more fa...
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By Leo Namiot - LeoLends.com, More than just great rates
(Canopy Mortgage - Leo Namiot)
Homebuyers Grant - Non Repayable Grant for Home Buyers! FHA Financing Up To 100% LTV Is Possible! FHA DPA Program, eligible borrowers can select either 2% or 3.5% down payment GRANT, which is immediately forgiven at Closing. No silent seconds, no first time home buyer requirements and no income limitations and nothing to repay! Now As Low as 580 FICO Score for qualified borrowers! Give me a call today to discuss how we can help qualify MORE of your borrowers. 904.712.1500 Subject to approved property, credit approval and underwriting approval. Equal Housing NMLS#89769 I am licensed in FL&CT, if you have clients outside of these states I can connect them with a licensed MLO in their state. *This program is not available in Washington State.    
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By Bob Elliot, 30+ Yrs Industry Experience
(eXp Realty)
With a focus on the upcoming inflation data reports with CPI and PPI this week, the previous week was very light on data. The only relevant reports released were the non-farm payroll and U.S. trade balance data releases. Job reports are showing robust hiring numbers and the trade balance remains within expectations. There appears to be to not much to fear coming from this next round of inflation data. Lending partners are reflecting this sentiment as they continue to cut rates.Non-farm PayrollsThe economy created a greater-than-expected 275,000 new jobs in February, in a seemingly bullish display that could complicate the Federal Reserve’s decision on when to cut U.S. interest rates. Economists surveyed by the Wall Street Journal had predicted a 198,000 increase in new jobs last month.U...
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By Eric L. Green, Your IRS Tax Litigator
(Tax Rep LLC)
I am a tax attorney in New Haven, Connecticut that help taxpayers dealing with IRS audits and back balances all over the country. For S Corporation owners having a grasp and making the right call on compensation is not just smart business practice—it's a vital part of following IRS rules. Reasonable compensation ensures that shareholder employees are fairly paid for their efforts while steering clear of tax complications. In this piece we'll delve into what reasonable compensation involves, its importance and how S Corporation owners can smoothly navigate IRS guidelines.Reasonable compensation as defined by the IRS refers to the pay that would typically be given for services in circumstances by comparable businesses. Essentially it's the salary a shareholder employee would earn for thei...
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By Bill Salvatore - East Valley, Realtor - 602-999-0952 / em: golfArizona@cox.net
(Arizona Elite Properties )
Get ready to spring forward! Daylight Savings Time is here, bringing longer, sunnier days our way. Embrace the extra daylight for evening strolls, outdoor fun, and spontaneous moments with loved ones.So, reset your clocks, reset your mindset, and let's enjoy the brighter side of life. Here's to more sunshine, more joy, and more time for simple pleasures this spring!  YOUR   Latest activity in the VALLEY of the SUNFor ALL your Valley AZ Real Estate NeedsPHONE   Bill   at   602-999-0952Text         Bill   at    602-999-0952Email      Bill    at     billAZElite@cox.net Read other YVP Blogs hereFor more information, Call or Text: 602-999-0952eMail: golfarizona@cox.netBill Salvatore / Arizona Elite PropertiesYour Valley Property TeamResidential Sales, Marketing, and Property ManagementSellin...
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By Charles Stallions, 850-476-4494 - Pensacola, Pace or Gulf Breeze, Fl.
(Charles Stallions Real Estate Services )
As mortgage rates turn downward, Charles Stallions, our esteemed real estate expert, observes a notable rebound in mortgage applications. This trend underscores the sensitivity of homebuying demand to interest rate fluctuations.According to Freddie Mac's latest data, the average rate for a 30-year fixed-rate mortgage dipped to 6.88% this week, marking the first decline in borrowing costs in over a month. Stallions emphasizes the significance of this shift, highlighting how even minor mortgage rate adjustments can swiftly influence prospective homebuyers' behavior.Mortgage 101: Thinking of financing, refinancing, or just needing to understand how the process works? It all starts here. We research whether it's a VA, FHA, conventional, or non-traditional loan for you. We can help simplify ...
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By Charles Stallions, 850-476-4494 - Pensacola, Pace or Gulf Breeze, Fl.
(Charles Stallions Real Estate Services )
Mastering Short Sales: Expert Advice from Charles StallionsIn the labyrinthine world of real estate, few transactions carry the same level of complexity and opportunity as short sales. These unique transactions, where a property is sold for less than the amount owed on the mortgage, demand a nuanced understanding of market dynamics, negotiation skills, and legal intricacies. In navigating this terrain, one name stands out as a beacon of expertise: Charles Stallions.Charles Stallions, a seasoned real estate professional with decades of experience, has established himself as a trusted authority in short sales. With a keen eye for market trends and a commitment to client success, Stallions has earned a reputation for delivering results in even the most challenging circumstances.So, what ex...
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By Bob Elliot, 30+ Yrs Industry Experience
(eXp Realty)
When it comes to securing a mortgage for your dream home, there's a crucial number that can make or break your application: your debt-to-income ratio (DTI). Understanding and managing your DTI is essential for navigating the mortgage approval process smoothly. Let's delve into what DTI is, why it matters, and how you can calculate it.What is Debt-to-Income Ratio (DTI)?Your debt-to-income ratio is a financial metric that compares your monthly debt payments to your gross monthly income. Lenders use DTI as a measure of your ability to manage your monthly payments and repay debts promptly. It helps them assess the level of risk involved in lending to you.Why Does DTI Matter in Mortgage Approval?Lenders consider your DTI alongside other financial factors when evaluating your mortgage applica...
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Learn how the Infinite Banking Concept can benefit business owners by providing greater control over finances, tailored financial plans for growth, enhanced cash flow management, and access to capital through tax-sheltered, steady growth whole life insurance policies.Overview of the Infinite Banking ConceptThe Infinite Banking Concept (IBC) stands as a revolutionary financial strategy that allows individuals to orchestrate their financial destiny through the use of whole life insurance policies as a personal banking system. By capitalizing on the cash value inherent in these insurance policies, individuals can nurture wealth growth and fortify their financial security over time. An illustrative example of the Infinite Banking Concept in action is when a business owner funds a whole life...
Comments 1
By Bob Elliot, 30+ Yrs Industry Experience
(eXp Realty)
What happens when you suddenly get a notice to pay your mortgage to a company you may have never heard of? How do you determine if this is a legitimate request or a scam?A borrower may get a written notice or an email that their mortgage has been sold to another entity or that a new loan servicing company will now be collecting the mortgage payments. The borrower needs to exercise extreme caution before just sending in a payment to the new company. It is prudent to double-check to see if the communication is legitimate because many people get scammed by this type of notice.Borrowers must receive a letter in the mail from the original lender notifying them of the change before getting any communication from the new company. If there was not a letter from the original lender, it is probab...
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By Bob Elliot, 30+ Yrs Industry Experience
(eXp Realty)
A number of important consumer related data reports were released last week, giving us a clearer picture on inflation impacts and the state of the economy on a broader scale. First up, looking at the First Revision of GDP numbers, we are seeing they had fallen slightly below expectations, but still showing the economy has not deflated at all as of the result of the prior years’ repeated rate hikes.With inflation trending down, this makes for a convincing argument that rate cuts are due this year. This also sets the stage for the official consumer confidence reports, revealing mounting anxiety regarding the political climate of the nation, marking the first decline in four months.Next up, PCE and Personal Income spending has shown that in a number of areas, inflation is still impacting a...
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