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))
CMB 5 Year - 3.60%* Est. CANHOU 12/15/29 [+0.05%]     10 Year - 3.89%* Est. CANHOU 12/15/34 [+0.06%]     Floating Rate insured cost of funds 5.10% [-]     Prime Rate 6.95% [-]     GoC 2 Year - 3.82% CAN 05/01/26 [+0.04%]     3 Year - 3.53% CAN 03/01/27 [+0.04%]     5 Year - 3.35% CAN 03/01/29 [+0.05%]     10 Year - 3.39% CAN 06/01/34 [+0.06%]     GOC Bonds are for reference purposes only * denotes interpolated rate  
Comments 1
By Dan Papadapoulis, Home equity loans, second mortgages Toronto
(Mortgage Central Nationwide)
A new Equifax Canada survey reveals that people are increasingly worried about a potential rise in fraudulent activity as economic pressures mount. “Any time you see financial stress or an economic downturn, inevitably … the motivation to commit fraud increases,” said Rupin Bal, a Brampton Criminal Lawyer who has seen many of these cases. While overall fraud rates have slightly declined from a 2022 peak, identity fraud has surged, now accounting for roughly three-quarters of all fraudulent applications across all sectors in the fourth quarter, up from about 65% the previous year, according to the credit reporting firm. Prince noted that fraudsters exploit economic vulnerabilities by applying for more credit or assuming various identities to borrow money from financial institutions. The...
Comments 0
By Dan Papadapoulis, Home equity loans, second mortgages Toronto
(Mortgage Central Nationwide)
As a homeowner, it's important to continually think about improving your home's value. A higher home value can make selling easier when the time comes and increase your home equity, providing you with financial flexibility in the future. Did you know you can use your existing home equity to fund home remodeling projects? That's investing back into your home! Here are some renovation ideas from the Toronto Home Equity Loan Lenders at Mortgage Central Nationwide to help boost your home equity.Bathroom Upgrades and AdditionsAdding another bathroom can significantly increase your home's value, but even if that's not feasible, upgrading existing bathrooms can be impactful. Consider new cabinetry or overhead storage. Sometimes, refinishing a bathroom—especially the master or guest bathroom—ca...
Comments 1
By Danny Papadopoulos, Offering Private & Second Mortgages in Toronto
(Homebase Mortgages)
Second mortgages or home equity loans are becoming popular again. Interest in these loan options dipped after the recession, but as people take charge of their finances once more, interest is picking up. If you want to learn more about home equity loans and see if you might qualify, you’ve come to the right place.How to Qualify for a Home Equity LoanTo qualify for a home equity loan, you need to have equity in your home. Equity is the value of the portion of the home you own outright, compared to the portion still financed by the bank. This is also known as your loan-to-value ratio—the balance you still owe compared to the total value of your property.According to a report by credit.com on the Home Buying section of Fox Business, lenders generally require you to have a loan-to-value rat...
Comments 0
By Danny Papadopoulos, Offering Private & Second Mortgages in Toronto
(Homebase Mortgages)
Real estate fraud can take many forms, but the two primary types consumers should be aware of are mortgage fraud and title fraud says Toronto Criminal Lawyer Calvin Barry of Calvin Barry Professional Corporation.Mortgage fraud happens when someone intentionally provides false, misleading, or incomplete information to a lender to obtain a mortgage they wouldn't otherwise qualify for. This could involve overstating income, using fake identification, or providing a falsified property appraisal.Title fraud involves a fraudster stealing a homeowner's identity to pose as the homeowner. They might then transfer the title, sell the property, or secure a mortgage in the homeowner's name.Real estate fraud is a serious crime, and the banking industry, law enforcement, government, and other entitie...
Comments 0
By Will Hamm, "Where There's a Will, There's a Way!"
(Hamm Homes)
Boy Doug Dawes nailed it in his blog about what buyers should not do before closing on a home. If you are a buyer of Real Estate there are things you need to do and things you shouldn't do. So, your offer has been accepted, your Realtor® has scheduled a home inspection, and you have submitted your home financing application. There's still more to do but today we're providing DON'T DO IT after you've started the financing process. You really want the financing, right? Things To Avoid After Applying for a Mortgage Some Highlights There are a few key things you’ll want to avoid after applying for a mortgage to make sure you’re in the best position when you get to the closing table. Don’t change bank accounts, apply for new credit, make any large purchases or transfers, and don’t co-sign lo...
Comments 0
By Doug Dawes, Your Personal Realtor®
(Keller Williams Evolution - 447 Boston Street, Suite #5, Topsfield, MA)
If you are a buyer of Real Estate there are things you need to do and things you shouldn't do. So, your offer has been accepted, your Realtor® has scheduled a home inspection, and you have submitted your home financing application. There's still more to do but today we're providing another DON'T DO IT after you've started the financing process. You really want the financing, right?Things To Avoid After Applying for a Mortgage Some Highlights There are a few key things you’ll want to avoid after applying for a mortgage to make sure you’re in the best position when you get to the closing table. Don’t change bank accounts, apply for new credit, make any large purchases or transfers, and don’t co-sign loans for anyone. Here’s a good rule of thumb. Always connect with your loan officer befor...
Comments 14
By Christopher Pataki, Hockessin Delaware Real Estate
(RE/MAX Associates)
You're probably hearing a lot about mortgage rates right now. You may even see headlines discussing the recent Federal Reserve (Fed) meeting and what it means for interest rates. However, despite what the headlines may suggest, the Fed does not set mortgage rates.The truth is that a variety of factors influence mortgage rates, including geopolitical uncertainty, inflation, and the economy. It's difficult to predict when all of those elements will align enough for interest rates to fall.As a result, attempting to time the market is rarely worthwhile. There is simply too much going on that you have no control over. The best thing you can do is manage the variables that are under your control.And when it comes to prices, here's what you can do to make your relocation ambitions a reality.  ...
Comments 1
By Matt Brady, One of San Diego's Best Equity Advisors
(Watermark Capital)
Rates have been on a roller coaster the past few weeks and were able to retrace lower last Friday after a higher-than-expected unemployment rate. There were slightly more jobs added than expected (206k vs 200k) but still below last month's 218k. The unemployment rate last month came in at 4% and the same was expected to come in Friday. However, it showed a slight uptick to 4.1%. The market expects a weakening labor market to strengthen the argument of earlier Fed intervention (in the form of sooner-than-expected rate cuts). This week we get to hear from a lot of Fed members and also receive CPI and PPI inflation data.Here is what to expect this week.MondayConsumer CreditTuesday NFIB Optimism Index Fed Vice Chair Barr Speaks Fed Chairman Powell Testimony To Senate Fed Gov Bowman Intro Re...
Comments 2
By Kelly McGovern, Working with Kelly is a good move
(Realty Concierge International)
 Where have I been, under a heap of real estate paperwork?  I had not heard this very important news about the Social Security Spousal Benefit rule expiring.  Have you??According to this article on the gobanking.com website, the Social Security Spousal Benefit rule is expiring THIS year for everyone except those who turned 70 on Jan. 1, 2024!  For decades the rule has been that they always pay the higher of the individual’s benefits or spousal benefits to the lower earner.  Well, NO LONGER!  If you or someone you know were planning a retirement around this benefit, they may need to buy real estate investment property instead :)  Just sayin' 
Comments 11
By Elyon DeClan, The Capital Solutions Guy
(Goldsmith & Freudenthal)
Why do banks say "No!"? The answer to this question may surprise you.The fact is the bank and financial companies alike use "data". Where does this data come from is another article (or you can attend the free webinar-Why Banks Say "No" by Faith Jones, Esq. for details). The short story is, yes, the "credit bureaus".Now, you have to separate "the credit bureaus" into two categories. First there is personal data, and the second is business data. Now, the compilation is completed at the same major data centers (i.e. Experian, Equifax, Lexis-Nexis, etc). Now, we are not focused on the many data companies, we are focused on these two different categories, 1. personal, and 2. business.Our firm focuses on financing investors (companies), who are individuals, which means we have an emphasis on...
Comments 3
By Brian Madigan, LL.B., Broker
(RE/MAX West Realty Inc., Brokerage (Toronto))
Commercial Bond Yields CMB 5 Year - 3.74%* Est. CANHOU 12/15/29 [-0.04%]     10 Year - 3.95%* Est. CANHOU 12/15/34 [-0.03%]     Floating Rate insured cost of funds 5.22% [-]     Prime Rate 6.95% [-]     GoC 2 Year - 3.99% CAN 05/01/26 [-0.05%]     3 Year - 3.68% CAN 03/01/27 [-0.05%]     5 Year - 3.48% CAN 03/01/29 [-0.04%]     10 Year - 3.45% CAN 06/01/34 [-0.03%]     GOC Bonds are for reference purposes only * denotes interpolated rate
Comments 0
By Brian Madigan, LL.B., Broker
(RE/MAX West Realty Inc., Brokerage (Toronto))
Commercial Bond Yields CMB 5 Year - 3.61% CANHOU 12/15/29 [+0.01%]     10 Year - 3.82% Est. CANHOU 12/15/34 [-]     Floating Rate insured cost of funds 5.22% [-]     Prime Rate 6.95% [-]     GoC 2 Year - 4.00% CAN 02/01/26 [+0.02%]     3 Year - 3.59% CAN 03/01/27 [+0.03%]     5 Year - 3.34% CAN 03/01/29 [+0.01%]     10 Year - 3.32% CAN 06/01/34 [-]  
Comments 0
By Matt Brady, One of San Diego's Best Equity Advisors
(Watermark Capital)
Reposting last week for reference, dod not show in my blog history.Last week gave us some conflicting labor data. On the one hand, jobs came in stronger than expected and on the other, unemployment ticked up to 4%. When you do some digging, you find that the number of part-time jobs jumped, which leads me to believe that people are getting 2nd jobs. Rates were lower for most of the week and then ticked up higher on the strong jobs numbers. Here is how rates are looking today (you can see the jump at the end of the week).  We are currently in this wedge and nearing a breakout point. Some good inflation data, or Fed news, can certainly take us to the promised land. Looking ahead, we have a monster of a week: CPI, Fed meeting, and PPI. Assuming the inflation reports (CPI & PPI) come in low...
Comments 1
By Matt Brady, One of San Diego's Best Equity Advisors
(Watermark Capital)
Inflation data came in last week, better than expected. We actually had, according to the data, 0% month-over-month increase. I have always said we needed 3 months of negative month-over-month data to stamp a trend reversal has occurred. But, this is good news too. The Fed, however, put a stop to the parade as they decreased the forecasted number of rate cuts for 2024. At the end of 2023/beginning of 2024, the Fed predicted 3 rate cuts for the year. I said they would all occur right before the elections, which gave me the July forecast for our first cut.Now, the Fed is saying there will be one rate cut and that they need to see more data to justify it. If they stick to their guns, it will be difficult to get that July rate cut and we may not see it until September.One thing is certain, ...
Comments 2
By Kevin A. Guttman-Author, ReverseMortgageSpecialist, 877-251-9709
(NMLS #384936)
You’re a senior and you’ve discovered that your current home is no longer meeting your needs.You’d love to move to make life easier, but with home prices reaching historic highs, you simply can’t afford it.Fortunately, there is a way to double your purchasing power and move into a newer home – a reverse mortgage.A Home Equity Conversion Mortgage for Purchase – known as an H4P – is a type of reverse mortgage that allows seniors aged 62 or older, to buy a new home using the loan proceeds from a reverse mortgage.By leveraging this additional cash flow, you’ll be able to afford living in a newer home, with updated amenities, and located in the neighborhood you want.You’ll also be able to accomplish this without paying those mandatory principal and interest payments each month.Why continue t...
Comments 1
By Dora Griffin, NMLS 6380
(D A Griffin Financial.LLC)
Feds still not budging on the discount rateNot unsurprising, the Feds' Powell announced no change in the discount rate for this month.  For that matter, the projection is for just one reduction in the discount rate for 2024.   According to Powell, whereas there was some news that would be encouraging for a reduction in the discount rate, it is not enough.  Powell says the fact the Feds have pulled back on the discount rate reductions for 2024 (one cut vs three), it could just mean more cuts in 2025.  The two biggest factors affecting stubborn inflation numbers are rental prices and auto insurance.  Most folks with car insurance can attest to the rapid increase in insurance premiums.  One would think eventually it would peak.  Until the Feds see reasons for reducing the discount rate, ou...
Comments 3
By Michael Elliott, Burlington, New Jersey Residential Sales
(Fathom Realty)
Believe it or not, some people take 15 year loans on the home purchases.   Imagine saving 15 years worth of payments?   This should be considered if you buy a home below your means, and have the promise of consistent employment.If not, many home owners shave years off the back end of the loan by mailing in extra principal each and every month.  If you can, why not?https://michaelelliott.fathomrealty.com/ 
Comments 5
By Matt Brady, One of San Diego's Best Equity Advisors
(Watermark Capital)
We have been experiencing a mini roller coaster with interest rates. We are currently in a bit of a drop as we ride the wave of last Friday's PCE (inflation) report which was pretty much in line with analyst expectations. The fact that it didn't pop up was a good sign. This week we have labor data to digest: ADP employment, initial jobless claims, and unemployment rate. It is morally contradicting to cheer for this, but if we get worsening labor data, it will be good for interest rates. Before considering rate cuts, the Fed has not shied away from announcing they are looking for lower inflation and ease in labor markets. The Fed meets next week, but as I've been saying, I'd be surprised by any rate cut announcement. The meeting at the end of July is the one I have been eyeing as the fir...
Comments 1
By Dan Rochon, Top Realtor in Northern Virginia
(Greetings Virginia with eXp Realty)
Are you a Veteran who wants to buy a home with O down? The Veteran Affairs loan program uniquely offers favorable loan terms for eligible veterans, military members, and their families.The main advantage of this loan program is the opportunity to buy a house without any down payment. This makes buying your new home much easier without making a sizable down payment.  BOOK A CALL 🧡SEARCH FOR HOMES VA loans also have lower interest rates than conventional loans, which can help you save a significant amount over the term of your mortgage. Unlike many traditional loans, which demand PMI for mortgages with less than 20% of a down payment, VA loans do not require PMI.Through a VA loan, you can buy a house anywhere, for instance, near a military base or a civilian neighborhood. Another VA loan ...
Comments 1