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Apache is functioning normally

Apache is functioning normally

October is officially one week away, making this week the best time to shop for and refresh your space with Halloween decor. Pottery Barn, Anthropologie, Target, IKEA, and West Elm all have some of the most fun and viral Halloween decoration ideas, but my absolute favorite place to find stylish and spooky home decor items is at JOANN. Not only does JOANN have some of the most festive, spooky season home decor, but it also has amazing prices, with sales starting super early in the season. 

With JOANN’s current Lowest Prices of the Season sale, you can get between 50 and 60 percent off fall and JOANN Halloween decor, just in time for trick-or-treaters. Plus, this week’s JOANN coupons include a $1.99 shipping perk with promo code SHIP199SAVE at checkout. 

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The market is awash with Halloween pieces at the moment and at this time of year you rarely find them on sale. Halloween pieces at competitors can be incredibly expensive for decor that you’ll only use once a year, so it’s smart to find finishing touches on markdown. What I particularly like about JOANN’s selection is that a lot of these pieces are made with iron instead of plastic, so they should hold up for years, saving you even more in the long run. 

Place & Time Halloween Metal Moon Phase Candle Holder

Was $24.99, now $12.49 at JOANN
Candlesticks are one of the biggest home decor trends of the season, and this moon phase option puts a spooky spin on the style. Constructed from 100 percent iron, this candle holder of moon phases is heavy-duty and built to last for seasons to come. It would look so cute on a tablescape with the viral DIY ghost candle from TikTok or added to a spooky fireplace display with flameless taper candles.

Place & Time Halloween LED Haunted House

Was $39.99, now $19.99 at JOANN
Illuminate your mantle or bookshelf with this adorable Halloween LED Haunted House from JOANN’s Place & Time Crypts and Cobwebs collection. This haunted house is constructed from a durable mix of stone powder and resin, giving it a ceramic-like finish. We love it on its own on an entry table next to a tablescape of pumpkins and gourds or paired with other haunted houses from the JOANN collection. 

Place & Time Halloween Metal Spider Bowl

Was $29.99, now $14.99 at JOANN
Whether you’re shopping for a Halloween candy dish or are looking for unique serving dishes for an upcoming spooky party, the Halloween Metal Spider Bowl is another fantastic spooky addition to your Halloween decor. This 9-inch bowl features long, creepy crawly legs and a full spider body and head with plenty of room for candy corn, pub mix, popcorn, and other Halloween snacks. 

Place & Time Halloween Black Metal Bats Wall Accent

Was $59.99, now $29.99 at JOANN
If you want to deck out your walls for Halloween but are looking for something slightly more elevated than your traditional party decor, this chic Black Metal Bats Wall Accent from Place & Time is worth considering (and its sale price makes it a definite add to cart). The durable Halloween wall decor is constructed from 100 percent iron and would look spooktacular placed above a fireplace mantle, entryway wall, or even outdoors in a patio area. 

Place & Time Halloween Orange Pumpkin & Ball Felt Garland

Was $19.99, now $9.99 at JOANN
Autumn means festive garland, starting with this craftcore style felt garland featuring plush orange pumpkins. This 6-inch long garland is a fun and whimsical way to dress up your home for the spooky season and would look great placed along a mantle, wrapped around a wreath, or added to a children’s room bookshelf. 

Place & Time Halloween Figural Ghost Pillow

Was $39.99, now $19.99 at JOANN
If you love the viral Gus the Ghost pillow from Pottery Barn but are looking for a more budget-friendly option, consider the Halloween Figural Ghost Pillow from JOANN. This 14 x 17-inch ghost pillow is somewhat of a Pottery Barn dupe and features that same plush material and spooky spirit. It’s the perfect throw pillow for that living room accent chair, but it would also look adorable nestled up with other festive pillows on an entryway bench. 

If JOANN’s sale items aren’t quite doing it for you, we’ve also covered the best places to buy Halloween decor so that you can welcome trick-or-treaters in style.

Source: homesandgardens.com

Apache is functioning normally

Apache is functioning normally

Generally, the credit bureaus consider anything over 670 a good credit score.

Considering applying for a new line of credit like a mortgage or credit card, but not sure how your credit score stacks up? If your score is 670 or higher, you’re doing fairly well. The best credit score and the highest credit score possible is 850 for both FICO® and VantageScore® models. FICO considers a score between 800 and 850 to be “exceptional,” while VantageScore considers a score above 780 to be “excellent.” It’s possible to get an 850 credit score, but it’s tough to achieve.

In This Piece

What Is a Good Credit Score?

A good credit score will depend on the scoring model, but either 670 or above would be considered good. Credit scores calculated using the FICO or VantageScore 3.0 scoring models range from 300 to 850. Those scores are broken down into five categories, though the breakdowns differ slightly. Since they have somewhat different range calculations, what’s considered good for VantageScore may be considered fair for FICO, and what’s considered very good for FICO may only be good by the VantageScore model.

FICO and VantageScore aren’t the only credit scoring models. However, they are the most commonly used models and the ones used by the three major credit bureaus: Experian®, Equifax® and TransUnion®. Some lenders even have their own scoring models. But most lenders and credit card companies use FICO scores or VantageScores.

What Is a Good FICO Score?

For FICO, a good credit score is 670 or higher. A score over 739 would be considered very good, while a score above 800 is considered exceptional—the highest designation possible aside from a perfect 850.

What Is a Good VantageScore?

In the VantageScore 3.0 model, a good score is 661 or higher. Since this model doesn’t have a designation between good and excellent, the range of good scores is much wider than it is for FICO. Excellent scores start at 781 rather than 800 in this model, with 850 also being considered a perfect score.

Understanding Credit Score Ranges

The credit score ranges vary depending on whether you’re looking at a FICO score or a VantageScore. They line up fairly similarly, but their score designations have different labels — FICO lacks a “very poor” designation, while VantageScore lacks a “very good” range. Here’s how they break down.

FICO Score Range

  • Poor: 300-579
  • Fair: 580-669
  • Good: 670-739
  • Very Good: 740-799
  • Exceptional: 800-850

VantageScore Range

  • Very Poor: 300-499
  • Poor: 500-600
  • Fair: 601-660
  • Good: 661-780
  • Exceptional: 781-850

Credit Score Range Chart

To give you a clear idea of how FICO and VantageScore’s credit score ranges compare, here’s a comparison credit score range chart.

What Are Credit Scores?

The three-digit figures called credit scores are what scoring institutions use to rate your credit profile based on your credit report. Since these bureaus have their own records, your score might differ from one scoring institution to the next.

Your score suggests to potential creditors how likely you could be to repay a loan, pay off a credit card, make late payments, and default on payments. Basically, it helps them determine whether you’re an acceptable risk and if they should approve your application for a loan or credit card. A low score doesn’t always mean lenders will decline your application. Instead, it might mean they’ll consider approving you with higher interest rates or less favorable loan terms.

How to Get a Good Credit Score

VantageScore and FICO scores are calculated using similar information. Each model may use slightly different terms for these, but here’s what they’re looking for.

Payment History

FICO weight: 35 percent

VantageScore weight: 40 percent

Late and missed payments can have a major impact on your credit score. Both FICO and VantageScore take your history of payments into account when calculating your score and look at your number of late payments, the number of accounts you’ve missed payments on, and the overall number of missed payments. Maintaining a consistent, on-time payment history goes a long way in establishing good credit.

Amounts Owed/Credit Utilization

FICO weight: 30 percent

VantageScore weight: 20 percent

Credit utilization is calculated as a ratio. It divides the amount of credit you’ve used by your total credit limit. If your credit limit is $5,000, for example, and you use $2,000 in credit, your utilization rate is 40 percent. It’s recommended to keep this rate to 30 percent or less and preferably below 10 percent. To help improve your credit score, try to reduce your utilization ratio if you often find yourself going above 30 percent.

Length of Credit History/Credit Age

FICO weight: 15 percent

VantageScore weight: 21 percent

Your credit history refers to the amount of time your credit accounts have been open, averaged across all of your accounts. That means that if your credit history has factored in your oldest account for the last 15 years but you suddenly close that account, your average credit age will drop accordingly, which could also lead to a drop in your credit score.

For that reason, it’s a good idea to maintain your oldest credit accounts. As a rule of thumb, try to make sure you have one account that’s six months old or older open at all times.

Credit Mix

FICO weight: 10 percent

VantageScore weight: N/A

Your credit mix refers to the number of revolving and installment accounts you have open. Here’s how those accounts differ:

  • Installment accounts: These are essentially defined long-term loans like home mortgages or vehicle financing on which you make payments in specified amounts over a predetermined period.
  • Revolving accounts: These types of accounts set a specific amount of credit you can use as needed, such as a credit card. You only pay back the amount of credit you borrow against this limit.

Potential lenders will want to know you can manage both of these account types, so it helps to have a history of successfully managing each. While FICO has a category explicitly for this, VantageScore does not—though it still may factor into other elements of your VantageScore. As such, it can be helpful to have multiple types of accounts in good standing regardless of the scoring model.

New Credit/Recent Credit

FICO weight: 10 percent

VantageScore weight: 5 percent

Opening multiple new credit accounts in a short period of time can have a negative impact on your credit score. Since lenders may see it as a red flag for a borrower to have several recent accounts open, it may be helpful to let your current accounts continue aging while paying them off consistently if you want to maintain or improve your score.

Balances and Available Credit

FICO weight: NA

VantageScore weight: 14 percent

Though only VantageScore has categories specifically for balances (11 percent) and available credit (3 percent), they still play a role in your FICO credit score. The amount of money you owe to lenders and your available credit factor into credit history and utilization rate, so keeping your balances low in comparison to your available credit can be a good idea when trying to achieve a good credit score.

A Note on Credit Inquiries

A hard credit inquiry gets pulled when a lender requests your credit report to assess your creditworthiness. This type of inquiry can drop your score by as much as 5 to 10 points and may stay on your credit report for up to two years, but it will impact your score for only 12 months. To get and maintain good credit, it’s best to avoid these as much as possible.

If you need to apply for multiple credit accounts in a short time or want to shop around for loan rates, it can help to keep those applications within a 14-45-day window so they get grouped into one inquiry. FICO and VantageScore differ on this, with FICO using 45 days and VantageScore using only a 14-day span.

Keep in mind this is only for hard inquiries, as soft inquiries shouldn’t affect your score.

How Lenders Use Credit Scores

Credit scores can offer a gauge of creditworthiness for lenders to determine things like whether or not to approve you for a credit line, how much credit to approve you for, and what your interest rate should be. But while your credit score has a big role to play in this, it’s considered alongside your credit report. Lenders may also consider your income, debt, and your ratio of debt to income.

How Can I Get My Credit Scores?

You can request a full credit report from all three credit bureaus from AnnualCreditReports.com, however, your score is not included with your report.

Most online options for viewing your credit score—free or paid—are limited to one or two scores. ExtraCredit from Credit.com takes it twenty-six steps further by offering you 28 of your FICO scores from all three major credit bureaus. When you sign up for an ExtraCredit account, you can also earn money when you get approved for select offers, monitor your accounts with $1 million identity theft insurance, and get exclusive discounts froma leader in credit repair services. All for one low monthly price.

If you’re not ready for ExtraCredit, Credit.com also offers a free Credit Report Card. This comes especially in handy as it offers you your Experian VantageScore 3.0 credit score for free.

FAQs about Good Credit Scores

Want to know more? Here are a few common questions about what good credit scores are and how they’re used.

Do Lenders Prefer a Good VantageScore Score over a Good FICO Score?

Lenders don’t necessarily prefer one score over the other. It’s likely, though, that a given lender uses only one credit-scoring institution. FICO reports that 90% of the top U.S. lenders use FICO scores when deciding whether to loan money to an applicant. On the other hand, VantageScore states that between March 2021 and February 2023, approximately 14.5 billion VantageScore credit scores were used.

Both models are consistent enough that knowing where you stand in one gives you a reliable indication of your credit in general.

What Is a Good Credit Score to Buy a House?

A FICO score of 580 is the minimum credit score required to qualify for maximum financing. , according to the U.S. Department of Housing and Urban Development. Below 580, borrowers will have to make a minimum downpayment of 10 percent. That doesn’t necessarily mean that you’re guaranteed to qualify for a loan with maximum financing with a score of 580 or above, but it’s what you’ll need if you want the flexibility of a lower down payment.

What Is the Highest Credit Score?

850 is the highest credit score possible for both the FICO and VantageScore models.

What Is Credit?

Credit is access to capital provided by a lender with an expectation that it will be repaid within an agreed time frame. This could be a set installment account—such as a mortgage or car loan that gets paid off gradually—or a revolving account like a credit card with a maximum balance that can be borrowed at a given time.

What if I Don’t Have a Good Credit Score?

Now that you know what’s a good credit score, it’s crucial to act on yours. If your credit is fair or poor, find out why. Then you can address the factors and work to improve your score.

Do you need more credit history? Check out our ExtraCredit Build It feature! Use ExtraCredit to report rent and utility bills you’re already paying and add them to your credit profile as tradelines. This allows the credit bureaus to see additional payment information from you, which can help you build your credit profile.

Source: credit.com

Apache is functioning normally

Apache is functioning normally

(Please click here for the large, legible version)

As an ode to the NCAA tournament, or “March Madness” as it’s commonly known, I woke up this morning with the brilliant idea of creating a “mortgage bracket.”

I quickly discovered that there probably weren’t 64 different mortgage options out there, let alone 32, unless you really want to split hairs and give everything an interest-only option. Or add a 3rd and 4th mortgage to the mix.

So I went with a more appropriate 16-team field, and the results are featured in the image above.

In this year’s tournament, fixed-rate mortgages dominated adjustable-rate mortgages because mortgage rates are at unprecedented levels.

This makes it wise to lock in a low interest rate for “life.”  Of course, the 15-year fixed gave the 30-year fixed a run for its money, but you can’t mess with greatness.

In previous years of the tournament, ARMs were actually king, and there was even a time when the out-of-favor option arm had a bit of a Cinderella story.  But that didn’t end very well…

Picking Your Winner

When it comes down to it, different homeowners will favor a different outright winner, based on their own personal qualities, finances, preferences, and needs.

For some, paying off the mortgage makes more sense than investing, even if not financially rational.

But for others, it may be the perfect time to pay down the mortgage slowly and invest the money elsewhere.

Others may opt for a short-term ARM because they plan on selling or refinancing in the not-so-distant future.

Just look at Facebook founder Mark Zuckerberg, who opted for a one-month ARM with an initial interest rate of 1.05%. Non-billionaires need not apply.

In summary, there is no one-size-fits-all in the mortgage world, but a 30-year fixed definitely makes it easier to sleep at night, which is why it was victorious in this year’s tournament.

Source: thetruthaboutmortgage.com

Apache is functioning normally

Apache is functioning normally

Verification, Credit, Servicing, Automated QC, POS, DSCR Products; Events and Training Fast Approaching

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Verification, Credit, Servicing, Automated QC, POS, DSCR Products; Events and Training Fast Approaching

By:
Rob Chrisman

Wed, Sep 27 2023, 10:44 AM

Today I head to Phoenix area for the AzAMP annual conference, and am reminded that, “Change is inevitable, except from a vending machine.” The mortgage industry is constantly changing, although Freddie and Fannie have been a somewhat stabilizing influence. But explaining to someone not in the mortgage business what they, the government sponsored enterprises (GSEs) do, is not easy, but in another one of his Mortgage Musings, attorney Brian Levy offers his thoughts on 15 years of being in conservatorship and whether that means it’s time to drop the “S” in GSE. Let’s just hope they don’t become another Amtrak. (Sign up for Musings here.) One topic that has come up at a few conferences, besides Agency buybacks, is demand for “LIP” and “VLIP” borrowers. Are F&F pushing hard for Low Income Purchase and Very Low Income Purchase business, and requesting high percentages of those products with the “threat” of hitting their overall pricing? Address any questions to your Agency rep, but some would say that in this environment, with everyone fighting for every deal and reduced volume, it doesn’t seem fair or even logical to have such a high demand for sellers with something outside of their control. (Today’s podcast can be found here and this week’s is sponsored by Built. Built is powering smarter and faster money movement for the entire construction and real estate ecosystem, all while reducing risk. Hear an interview with Verisk’s Kingsley Greenland on state level structural issues with property insurance and the current state of federal flood insurance.)

Lender and Broker Software, Programs, and Services

“Unlock a world of potential with DSCR loan options, including programs for Foreign National and ITIN investors with Champions Funding. Our business purpose non-owner-occupied Accelerator, Ambassador, and ITIN Accelerator loan programs make homeownership a reality for global clients and expand your borrower pool across the planet. Access DSCR financing for properties up to $3M/80 percent LTV (Accelerator), $1.5M/70 percent LTV (FN), or $1M/80 percent LTV (ITIN) as a broker partner. Visit here for full guidelines & to register as a partner. There you’ll also find DSCR l No Ratio Accelerator for U.S. citizens, including first-time investors. The Champs are the key to unlocking possibilities for your business & your borrowers’ portfolios.”

“The next gen of Xactus360 is here and is it ever shaking up the industry! Xactus’ proprietary verifications platform offers game-changing features that streamline workflows and empower lenders to work more efficiently, such as a single login for Mortgage Credit and Pre-Qualification reports. Not only that, Xactus360 can help improve your automation with key integrations. Flood ReportsX was recently added. Did you know Xactus’ offers no close, no pay flood zone determinations? That means if the loan doesn’t close, you will not pay for it. Xactus360 also includes Appraisal FirewallX which has met the requirements and is capable of fulfilling Fannie Mae data collection orders in addition to supporting Freddie Mac’s ACE + PDR program. Intrigued? Meet with Xactus at the MBA Annual for a demo of Xactus360 and see how this innovative platform revolves around you. To set up a time, email us.”

Does it feel like your current point-of-sale vendor has lost focus on mortgage? At Maxwell, mortgage is all they do. Constantly looking to improve the origination experience, Maxwell Point of Sale offers unique features to help lenders stand out including lender configurability, technology that pre-fills the application for the borrower, a complete Spanish language application, payment capabilities, quick pre-approval letters and more. With an average implementation time of less than 2.5 weeks, Maxwell Point of Sale can start working to improve your bottom line quickly. Schedule a call with the team to learn more.

“Blue Water Financial Technologies Services (“Blue Water”) continues to add new originators, investors, and due diligence providers to its automated QC platform. Let us be your pipes. Our proprietary technology assists your team with rapidly identifying and remediating exceptions! QC is just one of the many capabilities offered by Blue Water’s proprietary platforms for mortgage assets. Your company can value, transact, transfer and QC your mortgage assets using our Single Sign on proprietary technology. Come meet our team in Philadelphia during the MBA Annual 23 from October 15th-18th for a demo and discussion on how Blue Water can help streamline your operational processes and enhance your throughput with our encrypted, onshore, cloud-based tools! Schedule a meeting with our expert sales team today! Services offered by Blue Water Financial Technologies Services, LLC.”

“Working to Provide the Best Homeowner Experience: Cenlar is more than just a mortgage subservicer. We strive to be our clients’ trusted partner each and every day. And a big part of that is how we care for our clients’ homeowners. A home is most likely someone’s largest asset. That’s why we are continuously evolving to provide the best homeowner experience. Whether that’s the regular cycle of onboarding, escrow, monthly payments and year-end or challenges facing homeowners like natural disasters, we are responsive, anticipatory and always caring. Let’s discuss how Cenlar can meet the mortgage servicing needs of your organization. Call 1-888-SUBSERV (782-7378) or visit here. We want to be your trusted partner, each and every day.”

Connect with Sagent @ #NEXTFALL23. Headed to Dallas next week? Make sure you block off a few dates and times to catch Team Sagent on stage at #NEXTFALL23, plus an opportunity to elevate your personal LinkedIn brand with a sponsored headshot station! On Wednesday 10/4 at 1:15 PM CT, join CLO Wendy Lee for an exclusive “AI” Hive roundtable, which will be a precursor to her Ethical AI Use Cases panel on Thursday, 10/5 at 9:15 AM CT. Plus (if you’re onsite), Sagent is sponsoring the Headshot Station during the event (10/4 @ 1:30PM – 4PM CT & 10/5 @ 10AM – 1PM CT), so reserve your spot via’s NEXT’s app and head on over for a warm welcome from Cheryl McKenzie (who will greet you with a glass of champagne) and get picture ready. For more information, click the link here. Hope to see you all there!

Events and Training

Like every other month, September has sailed by, and this Sunday is October. (No, we don’t change the clocks in most states until November.) What’s happening out there? A good place to start is here, and click on “events” for conferences in the future.

Join K&L Gates and special guest, John Beccia, Co-Founder and CEO of FS Vector, for a panel discussion on generative artificial intelligence (AI) in the Fintech and Banking industry on

Thursday, September 28th 9:00-10:30 AM – PT, 11:00 AM-12:30 PM – CT. Discussion will address the legal and ethical risks, mitigation, and best practices to consider across these industries as you develop generative AI products and services or use generative AI in the operation of your business.

In the Dallas area, the TMBA Education Symposium is November 6-7. The Symposium will be held at Westin Dallas Southlake, 1200 E State Hwy 114, Southlake. Early registration ends Oct. 2nd for the best registration rates. I will be there, so please say hi!

If your credit union’s due diligence for quality control relies only on last-minute adjustments during post-closing processes, chances are you’re spending too much time putting out fires rather than adequately serving members’ needs. Market changes demand a more comprehensive and proactive approach to due diligence, and the experts at ACES Quality Management have the wherewithal to help you make that adjustment. Tune into this Inside Track webinar on September 27th at 1 pm CST to learn the why’s and how’s of improving your QC processes.

Looking for more in-depth commentary on weekly mortgage news? Register here for “Mortgage Matters: The Weekly Roundup” presented by Lenders One. Every Wednesday at 2:00 PM EST/11:00 AM PT is a dive into a range of mortgage-related topics, including market trends, interest rate fluctuations, innovative mortgage products, and industry advancements. Listen to a unique mix of age perspective, expertise, and charisma to the screen, ensuring that the information is not only educational but also entertaining. Today features Phil Johnsen, SVP and General Manager of Altisource’s Servicing & Real Estate Solutions Group.

California MBA upcoming Mortgage Quality and Compliance Committee webinar, Navigating the Future of Work: Adapting Return to Office Policies, on Thursday September 28th at 11 A.M. PST. Expert panelists will provide valuable insight on the ever-changing work dynamics, the challenges of managing remote and in-house teams, and MLO enhanced requirements in CA (and other states).

Watch on demand, at your leisure: Millennials and Gen Z’ers represent the largest group of first-time homebuyers. In less than 10 years, 3.1 million will have entered the market. Of these buyers, roughly 75 percent of them report checking social media daily. Making social media a necessary strategy for loan officers. Join Homebot’s VP of Marketing, Ashley Remstad and Mortgage Advisor Sosi Avila as they discuss key strategies and tactics for using social media to your advantage. Register for the webinar here.

Friday the 29th is The Mortgage Collaborative’s Rundown covering current events in the mortgage market for 30-45 minutes starting at noon PT in “The Rundown”. Tom G. and I are joined by Laird Nossuli (iEmergent) and Evan Zuverink (First Commonwealth Bank) to take a dive into Special Purpose Credit Programs.

ACUMA’s Annual Conference is October 1-4 at Gaylord National Resort, National Harbor, Maryland. From legislative and regulatory issues to new marketing and service strategies to cutting-edge technology, conference topics are concurrent with today’s challenges, and networking is a paramount part of the program.

Educate & Elevate with National MI University’s October Webinars. 2023 NextGen Money Mindset: Findings & Insights with Kristin Messerli, October 3rd, 1pm ET. P&L and Balance Sheet Analysis for Self-Employed Borrowers ​​​​​with Marianne Collins – October 4th, 1pm ET. Coaching for Improved Performance ​​​​​with Andrew Oxley, October 5th, 2pm ET. Your Perfect Week with Rebecca Lorenz, October 24th, 1pm ET. Help! I’m in a Funk with Dr. Bruce Lund, October 25th, 2pm ET

MBAC 67th Annual Convention Oct 1-4, 2023 at the Francis Marion Hotel, Charleston, SC. Sponsorship opportunities available, reserve your room at the Francis Marion Hotel use Promo Code MBAC2023 for special rate, Last Day to reserve at this rate, September 11, 2023.

Join St. Louis MBA in Partnership with the Saint Louis Realtors Association for a presentation on the Headwinds & Tailwinds – Economy’s Impact on Housing Market and Where We’re Heading, October 5th, 10:00-11:00, at St. Louis Realtors Association, 12777 Olive Boulevard.

NYMBA ’23 Annual will be held at Turning Stone Resort Casino, October 4th -6th. Kick-off begins with the 2nd annual Golf Tournament at Turning Stone’s Shenendoah course, recently named in Golf Digest’s Editor’s Choice: Top 50 Golf Courses in the U.S. as one of New York’s award-winning courses.

Become a Certified Reverse Mortgage Specialist. CoAMP is partnering with NAMB to bring their CREV course to Denver, Friday, October 6th, 9:00 AM – 5:00 PM MDT at Steward Title: 7979 E Tufts Ave, First Floor Conf Room. Cost for NAMB Members is $199; Courtesy Associate Members and Non-Members is $298 (includes a NAMB Professional/Associate membership). The certification training will give you the information and tools necessary to successfully navigate the product, process, and conversation with potential borrowers.

ConFi Today’s third session webinar, Wednesday, October 11th 11:30 am–12:30 pm PT | 1:30 pm–2:30 pm CT | 2:30 pm–3:30 pm ET; Real Talk About Artificial Intelligence: How Will Enforcement Activity Impact the Use of AI in Consumer Financial Services, will focus on the latest issues and enforcement trends related to financial institutions using AI tools. Specific topics to be covered include Key risk areas, Emerging themes, Risk mitigation steps to take now.

Join Mortgage Bankers Association of Metropolitan Washington for a fast-paced, fun presentation walking through the Fed’s monetary policy, economy, interest rates and housing as we quickly approach 2024. Reading the Markets – A Real-time Economic and Interest Rate Discussion with Bill Bodnar, Thursday, October 19, 10 – 11 am.

Capital Markets

The “higher rates for longer” narrative from the Fed has led to selling in the bond markets over the last several days. Yesterday’s selling lifted yields on 10-year and 30-year Treasuries to fresh highs for the year. “Hawkish” chatter from Fed officials, the latest being Minneapolis Fed President Kashkari saying that a 25-basis point hike prior to year-end was likely, has been the main driver of investor sentiment. Economic data released yesterday showed weaker than expected New Home Sales (actual 675k, expected 695k) and a decrease in the Consumer Confidence Index for September. The U.S. Treasury sold $48 billion in 2-year notes to strong demand ahead of today’s $49 billion 5-year note auction.

Unfortunately, today’s calendar kicked off with mortgage applications decreasing 1.3 percent from one week earlier, according to data from the MBA. August durable goods orders have also been released (+.2 percent, stronger than expected). Later this morning brings a Treasury auction of $24 billion reopened 2-year FRNs and $49 billion 5-year notes. We begin the day with Agency MBS prices better by .125-.250 and the 10-year yielding 4.51 after closing yesterday at 4.56 percent.

Employment

“Are you ever overwhelmed and sense a lack of support? If you’re a business manager leading a hardworking staff and want more strategic guidance and additional resources to thrive, look no further. Nations Lending offers a full suite of tailored support for Producers. With a top-notch Operations department that focuses on streamlining processes to ensure efficient loan origination, with LO-friendly products like Direct Submit, for seamless loan file submission directly to Underwriting. And ACE (Accelerated Competitive Edge) Approvals, our comprehensive underwriting preapproval program saving you time. If you’re interested in excelling with a company that is credited with multiple awards, including three-time Inc. 5000 winner, eight-time winner of Scotsman Guide’s Top Mortgage Lenders, and three-time winner of Top Workplaces for Millennials by Fortune Magazine, then join our family. Become part of our nation and mission to make “home loans. made human.™,” visit Nations Lending to learn more.”

“Visit with a Mortgage Boutique at AIME’s Fuse National Conference in Vegas at booth #418 October 4-7! We are excited for the opportunity to connect with potential business partners, foster meaningful relationships, and explore collaborative pathways to enhance your lending capabilities. Dedicated to providing outstanding service to both clients and partners, a Mortgage Boutique places extraordinary talent at the forefront of our success. Allow us to introduce our newest addition, Alan Michaels, along with his dynamic team. Alan brings a wealth of industry knowledge and a track record of remarkable achievements to the AMB family. We’re thrilled to welcome him aboard and know his expertise will be an invaluable asset as we continue to expand our services and meet the needs of our clients. If you’re passionate about excellence and seeking to join a thriving team, consider a career with a Mortgage Boutique. Contact DJ Ziggas to learn more.”

 Download our mobile app to get alerts for Rob Chrisman’s Commentary.

Source: mortgagenewsdaily.com

Apache is functioning normally

Apache is functioning normally
While mortgage rates above 7% aren’t preferable, there are a few benefits to consider for borrowers.

Westend61/Getty Images


There’s no question that today’s housing market isn’t ideal for homebuyers. With numerous Federal Reserve rate hikes over the last 18 months, mortgage rates have skyrocketed. 

The average 30-year fixed mortgage rate is now well above 7% — despite rates recently hitting a 3-week low. That’s well above the 2% to 3% rates that many homebuyers were getting in 2020 and 2021.  

But while higher mortgage rates aren’t preferable, as they can dramatically increase the cost of buying a home, there are some upsides to the elevated rate environment. While you may think it’s best to wait for rates to drop, today’s elevated rate environment can actually offer some surprising benefits to homebuyers.

Explore the mortgage loan rates you may qualify for here.

4 ways today’s mortgage rates can benefit homebuyers

Here’s how today’s high mortgage rates can work in favor of those looking to purchase their dream home.

There may be less competition for available inventory

One of the main advantages of high mortgage rates is the reduced competition for homes. When rates are high, many potential buyers may choose to delay their home-buying plans, thinking they can secure a better deal later when rates potentially decrease. This means less competition in the market, which can be a golden opportunity for you — especially considering that home inventory remains low in many markets across the nation.

With fewer buyers vying for the same properties, you won’t have to worry as much about losing out on your dream home due to a bidding war. And, sellers may also be more open to negotiation. In turn, you could have a better chance of closing the deal at a price that suits your budget.

Learn more about today’s top mortgage rates here.

There may be more options for buyers

High mortgage rates can also lead to more choices for buyers. Not only are many people choosing to wait out the high rates in hopes that mortgage rates will decline, but it’s also harder to qualify for a loan when interest rates are elevated. In turn, homes are staying on the market longer in many markets, giving you more options — and more time to make a decision.  

While some markets still remain hot, not all of them are. And, if homes are sitting for longer than they were in recent years, you’ll have a wider selection to choose from. With more options on the market, you’re more likely to find a home that ticks all the boxes on your wishlist — which may not have been possible during the buying frenzy when rates were in the 2% to 3% range.

The risk may be lower for buyers

In a competitive real estate market with low mortgage rates, buyers often face pressure to waive contingencies, like inspections and appraisals, in order to get their offer accepted by a seller. This heightened risk can be stressful and financially burdensome — and could lead to disaster in some cases.

However, when mortgage rates are high and competition is lower, buyers may have the upper hand. Sellers may be more willing to accommodate your requests, including allowing necessary contingencies. This reduces your risk and ensures you can make an informed decision about the property you’re purchasing.

Buyers still have the option to lower their rate over time

While today’s high mortgage rates may not be ideal for initial home financing, they come with the opportunity to lower your interest rate before closing — or over time. For example, you can explore options like buying down the rate on your home. Buying down the rate involves paying extra upfront to your lender to reduce your interest rate, which can save you money over the life of your mortgage.

You also have the option of refinancing when rates become more favorable. Rates are high right now, but it’s unlikely that they’ll stay that way forever. As economic conditions change, mortgage rates may decrease, allowing you to refinance your mortgage at a more attractive rate, potentially reducing your monthly payments.

The bottom line

High mortgage rates may seem like a disadvantage if you’re looking for a home to purchase right now, but they can actually offer numerous benefits to buyers. With less competition, a broader range of choices, reduced buyer risk and the potential to improve your mortgage terms later, today’s high rates can work in your favor. So, if you’re in the market for a new home, don’t be discouraged by the numbers. Embrace the advantages they bring and make the most of this unique opportunity.

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Source: cbsnews.com

Apache is functioning normally

Apache is functioning normally

Government-sponsored enterprise (GSE) Fannie Mae announced on Wednesday that it will launch new programs and resources designed to tackle the homeownership gap experienced by the Latino community, designed to “to provide responsible access to housing and long-term sustainable homeownership opportunities.”

The company also announced an expansion of its Special Purpose Credit Program (SPCP) pilot to provide downpayment assistance to eligible first-time homebuyers living in majority-Latino communities. 

These include Atlanta, Baltimore, Chicago, Detroit, Memphis, and Philadelphia, with expansion to additional cities including those with large Latino populations in early 2024.

In alignment with the 2022 launch of HomeView, which offers a free online course with modules to guide consumers through homeownership, Fannie Mae announced Wednesday that the program is now available with Spanish-language content, described as a “digital consumer education platform providing 24/7 end-to-end access to information about financial literacy and homeownership.”

The course is designed for Latino consumers to use on their own, or in concert with trusted advisors who may assist them with decisions related to homeownership.

“HomeView en Español features a new in-language credit education course with content tailored to help Latino consumers effectively build and manage their credit – a critical component to access the traditional homebuying process,” the announcement said. “Thin or insufficient credit history is a challenge disproportionately faced by Latino renters and first-time homebuyers, according to Fannie Mae’s Latino Housing Journey research.”

The course itself was created and written by Spanish speakers, is free to everyone who registers and is designed to be taken on any mobile, desktop or tablet device. The course includes short quizzes and audio clips designed to appeal to a variety of people who learn differently while also increasing information retention, and is customized to address “key hurdles and challenges experienced by Latino consumers establishing or maintaining their credit.”

Additional HomeView enhancements are expected in 2024, the company said.

Research from the Urban Institute indicates that as much as 70% of net-new homeowners between 2020 and 2040 will be Hispanic/Latino, representing “one of the fastest-growing segments of potential homeowners.” But these consumers face disproportionate obstacles including a lack of affordable housing supply, insufficient credit and higher relative up-front housing costs.

“Fannie Mae is focused on knocking down these obstacles so that historic housing disparities can be addressed, and more borrowers can equitability access affordable housing and long-term housing stability,” the GSE said.

“We want to help people get into and stay in their homes for a long time,” said Fannie Mae CEO Priscilla Almodovar. “Downpayment assistance and homeownership education can help the Latino community and achieve both goals. We will continue to work closely with the Latino community to craft solutions to the barriers Latinos face on their housing journey.”

The company added that as of Wednesday morning, a new “strategies for healthy credit” course is now available in Spanish.

Source: housingwire.com

Apache is functioning normally

Apache is functioning normally

On the market for a mortgage? If you’re new to the process, or you just don’t have a lot of mortgage knowledge, finding a mortgage on your own might feel daunting. That’s where a mortgage broker can come in handy.

Working with an expert can make your loan process simpler and help you get the best rate possible. If you’ve been wondering how to find a mortgage broker, let’s look at how to work with a mortgage broker and see if that’s right for you.

What Is a Mortgage Broker?

A broker works on your behalf to find the best mortgage lender and mortgage rates for your needs. An individual broker or a brokerage firm does the comparison shopping for you, so you don’t have to spend hours researching and applying for different types of loans. A broker likely also has access to wholesale mortgage lenders, whose rates are lower than retail rates. 

How to Know If a Mortgage Broker Is Right for You

Whether a mortgage broker is right for you depends on your specific situation and goals. A mortgage broker can be very helpful throughout the home-buying process and help you get a better rate. Before you decide to work with a mortgage broker, take a look at your financial situation before taking the leap.

What Are the Advantages of Using a Mortgage Broker?

Sure, you could try to find a mortgage yourself. But if you have little knowledge of mortgages, it might be easier said than done. Working with a mortgage broker, on the other hand, can make the process a lot less complicated. Here’s what a mortgage broker can do for you:

  • Advise you on the best loan for you, based on their knowledge of available loans.
  • Shop around and compare different loans for you.
  • Apply for a variety of loans, rather than going through the process yourself.
  • Access to a wholesale mortgage rate.
  • If you have a low credit score, they’ll be able to find loan options for your specific situation.

Are There Any Reasons You Shouldn’t Use a Mortgage Broker?

In most cases, using a mortgage broker can be a pretty positive experience. There aren’t a lot of negatives as long as you take the steps to find a qualified, reputable mortgage broker. Otherwise, you could end up with someone who doesn’t pay attention to your needs.

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If you’re pretty knowledgeable about the mortgage industry and have the time to research lenders and rates, you probably don’t need to use a mortgage broker. You can save yourself the brokers fee by doing the legwork yourself.

Does It Cost to Use a Mortgage Broker?

In exchange for their services, mortgage brokers charge origination and/or broker fees that you pay when you close on your house. Those fees are usually between 1% and 2% of your total loan and not something you pay separately. You can pay this fee all at once at the closing, or sometimes you can roll the fee into your mortgage loan. 

Is It Better to Get a Mortgage From a Bank or a Broker?

Ultimately, the decision comes down to your preferences and whether you feel you can save time by using a mortgage broker. If you feel you can research loans and options on your own, you may prefer to work directly with a lender.

Mortgage lenders such as banks, credit unions and mortgage companies specialize in making mortgage loans directly to borrowers. Each has its own loans and rates. Because loan programs and qualifying standards vary from one lender to the next, it can be time-consuming for a homebuyer to shop around for rates and different loan options. 

In today’s market, it’s not always clear if you’re working with a mortgage lender or a broker. Don’t be afraid to ask your mortgage company if it’s a lender or a broker. And don’t be afraid to ask if the company or individual is licensed and to research them with the Better Business Bureau, the Consumer Financial Protection Bureau, the National Association of Mortgage Brokers and the NMLS website.

How Do I Find a Mortgage Broker Near Me?

To find a mortgage broker near you, start by getting referrals from a real estate agent or two if you can. Experienced agents, such as those found on HomeLight, can refer you to lenders they’ve worked with in the past.

You can also ask friends or family members who you know have recently bought a house. If they used a broker and were happy with the results, that’s a pretty good sign. Looking for mortgage brokers online can work too, but make sure to check as many reviews as you can find.

When you’re looking for referrals, ask the following questions:

  • Did the lender describe the available loans in easily understandable language?
  • Did they lock in the rate you were promised?
  • Were there any hidden or unexpected fees that weren’t fully disclosed in the initial meeting?
    • If they still have the documents, see if the fees on the loan documents are the same as those originally disclosed on the initial Good Faith Estimate.
  • Was the broker or banker responsive and able to deal with problems quickly?

Questions to Ask Potential Brokers

If you decide to work with a mortgage broker, in addition to researching the broker, ask some questions up front so you know what to expect and can get a sense of what working with the broker will be like.

  • What is your experience as a mortgage broker?
  • Can you provide references?
  • How much will you make from the lender on this loan?
  • What are the names of some of your top lenders?
  • What is your process for working with clients, and what can I expect from you?
  • How long does it take you to respond to clients’ messages?
  • What can you do for me that another mortgage broker can’t?
  • Do you require money up front or simply take your fee at closing?

When you first meet with a broker, take a recent pay stub, your most recent bank statement, a driver’s license or birth certificate, a recent tax return and copies of recent credit card and other loan statements. A broker should ask you up front what you’re looking for, including the type of home, the type of loan, what your budget is and what your credit is. 

Most importantly, when working with a broker, know that you’re the customer. The broker is there to serve your needs and help you. If at any time you don’t feel like you’re getting what you need, walk away.

Source: credit.com

Apache is functioning normally

Apache is functioning normally

Some investment terms and definitions may seem complex, but a little research can take the mystery out of most common investing terminology. That can help investors feel even more confident about starting their investing journey. It’s more or less the same as starting any new endeavor — from rock climbing to investing — at first, you need to get familiar with new words and phrases.

Given the girth of the investment space, the sheer amount of investment terminology investors need to know can be intimidating. But the more you read, invest, and envelope yourself in it, the easier it’ll become. If you’re just starting out, though, it may be helpful to get a big rundown of some of the more common investing terms.
💡 Quick Tip: How do you decide if a certain trading platform or app is right for you? Ideally, the investment platform you choose offers the features that you need for your investment goals or strategy, e.g., an easy-to-use interface, data analysis, educational tools.

Investment Terminology Every Beginner Investor Needs to Know

Here are a slew of common investing terms and definitions (in alphabetical order) that investors may benefit from committing to memory.

1. Alpha

Alpha is used to gauge the success of an investment strategy, portfolio, portfolio manager, or trader compared with a relevant benchmark. You may also hear alpha defined as “excess return” in that it refers to returns that can be attributed to active management, over and above market returns.

2. Assets

An asset is anything that holds value that can be converted to cash. Personal assets might include your home, a car, other valuables. Business assets might include machinery, patents. When it comes to investing, assets are typically the securities you invest in.

3. Asset Class

An asset class is a group of investments with similar characteristics that is likely to perform differently in the market than another asset class. Types of asset classes include stocks, bonds, real estate, currencies, and more. Given the same market conditions, stocks and bonds often move in opposite directions. Most financial advisors typically recommend you invest in multiple asset classes in order to have a well-diversified portfolio and minimize risk.

4. Asset Allocation Fund

An asset allocation fund is a diversified portfolio consisting of various asset classes. Most asset allocation funds have a mix of stocks, bonds, and cash equivalents. These types of funds can be popular as some advisors stress the importance of having diverse portfolios to minimize potential losses.

5. Beta

Beta refers to how risky or volatile a security or portfolio is compared with the market overall. Calculating the beta of the stocks in your portfolio can help you determine how your portfolio might respond to market volatility. You can also gauge the beta of a stock to help determine how much risk it might add to your portfolio.

6. Bear Market

A bear market occurs when the market declines, typically when broad market indexes fall 20% or more in two months or less. Bear markets can accompany a recession, but not always. They often signal that investors feel pessimistic about their investments’ ability to make money and the market’s ability to rebound.

7. Bull Market

A bull market is the opposite of a bear market, meaning prices are rising or are expected to rise for extended periods of time. Bull markets usually mean security prices are rising for months or even years at a time.

8. Blue Chip

Blue chip companies are generally thought to be well-established, financially sound, and therefore high-quality investments. Blue chip stocks are typically large companies, and many of them are household names. In some cases, blue chips may be more expensive to invest in since they can be considered relatively stable and likely to grow.

9. Bonds

When governments or corporations need to borrow money they issue bonds. Investors who buy the bonds are effectively loaning that entity cash, which will be repaid according to the terms of the bond (e.g. a 10-year bond with an interest rate of 3%). Bonds are often considered to be relatively stable, lower-risk investments compared with stocks.

10. Broker

An investment broker, whether a person or a firm, acts as a middleman to help investors buy and sell securities. Brokers may be necessary because some securities exchanges only allow members of that exchange to make an investment order. A broker’s primary function is to help clients place trades, although many brokers also help clients with market research and investment planning.

11. Diversification

You’ve probably heard that you should aim to have a diversified portfolio. That means investing in a range of asset classes that are likely to behave differently under different market conditions, in order to mitigate risk. A portfolio of only stocks, for instance, could be more vulnerable to market volatility than a portfolio that also included bonds, real estate, commodities, and so on.

12. Dividends

When a company shares their profits with investors, these are called dividends. Dividends are often paid in cash (although they can be paid in stocks). Some companies — e.g. many blue chip firms — pay dividends, but not all companies do. Ordinary dividends are taxed differently than qualified dividends, so you may want to consult a tax professional if you own dividend-paying stocks.

13. Dollar Based Investing

Also called fractional share investing, dollar based investing is a way for investors to buy partial shares of stocks. Instead of buying shares of a company, you instead invest a dollar amount. Dollar based investing is a great way for smaller investors to buy into popular companies that they may otherwise be priced out of.

14. EBITDA

EBITDA is a way to evaluate a company’s performance that is considered more precise than simply looking at net income. EBITDA stands for: earnings before interest, taxes, depreciation, and amortization. To calculate EBITDA, use the following formula: Net Income + Interest + Taxes + Depreciation + Amortization.

15. EBIT

EBIT is a simpler way to calculate a company’s profits than EBITDA, as it’s only one part of the EBITDA equation (literally!). It stands for “earnings before interest and taxes.” It’s calculated using this formula: Net Income + Interest + Taxes.

16. EPS

EPS stands for earnings per share, which is a common way investors measure how well a stock is performing. EPS is calculated by finding a company’s quarterly or annual net income and dividing it by the company’s outstanding shares of stock. Increases in EPS can be a sign that the company’s profit performance is on the upswing, whereas a decrease can be a red flag for investors.

17. ETF

Exchange-traded funds, or ETFs, are similar to mutual funds in that the fund’s portfolio can include dozens or even hundreds of different securities, and investors buy shares of the fund. Unlike mutual funds, ETF shares can be traded like stocks throughout the day (mutual fund shares are traded once a day). Most ETFs are considered lower-cost, passive investments because they track an index, although there are actively managed ETFs.

18. Expense Ratio

An expense ratio is an annual fee investors pay to cover the operating costs of mutual funds, index funds, ETFs and other types of funds. Fees are typically deducted from your investments automatically (you don’t pay a separate charge), and they can reduce your returns over time so it’s wise to shop around for lower fees. Expense ratios are calculated using this formula: Total Funds Costs / Total Fund Assets Under Management.

19. FCF

Free cash flow is the money a company has after it has paid its expenses. This number is important to investors because it can show them how likely it is that a company could have extra cash for dividends or share buybacks. A continuous decrease in free cash flow over a few years can also be a red flag to investors.

20. Growth Stock

Growth stocks are shares in a company that’s growing faster than its competitors, typically showing potential for higher revenue or sales. Growth stock companies may be considered leaders in their industry.

21. Hedge Fund

Hedge funds are usually managed by an LLC or limited partnership that invests in securities and other assets using money from multiple investors. Hedge funds tend to be more risky and expensive than mutual funds or ETFs, which often makes them accessible to more wealthy investors.

22. Index Fund

Index funds are a type of mutual fund that invest in securities that mirror a particular index, such as the S&P 500 Index or the MSCI World Index. Indexes track many different sectors, from smaller U.S. companies to big global companies to various kinds of bonds. Each index acts as a proxy for how that market sector is performing; the corresponding index funds reflect that performance.

23. Interest Rate

The interest rate is the amount a lender charges to borrow money — and it can also mean the amount your cash earns in a savings, money market or CD account. The baseline interest rate in the U.S. is set by the Federal Reserve. This rate in turn influences savings rates, mortgage rates, credit card rates, and more. Generally, when the Federal Reserve lowers interest rates, the stock market tends to rise.

24. Large Cap

A large-cap company has $10 billion or more in market capitalization. These companies are often considered industry leaders, and are relatively conservative, low-risk, and safe investments. A company’s stock may be considered large cap, mid cap, or small cap.

25. Market Cap

Market capitalization, or market cap, is the value of a company’s total outstanding shares. It’s often used to measure a company’s value and build a diversified portfolio. You can calculate market cap by multiplying the number of outstanding shares by the current price per share. Companies with lower market caps usually have more room to grow and usually are associated with newer companies, meaning they can also be riskier.

26. Mid Cap

Mid-cap companies are usually between $2 billion to $10 billion in market capitalization, putting them somewhere between small- and large-cap companies. Many mid-cap companies are in a growth phase, making them attractive to some investors who believe the company may grow into a large-cap over time, although this is not guaranteed to happen.

27. Mega Cap

Mega-cap companies are the largest companies you can invest in, with a market value of $1 trillion or more. Mega-cap stocks are typically industry leaders and household name brands.

28. Mutual Fund

Mutual funds may invest in stocks, bonds, and other securities — or a combination of these (e.g. a blended fund). Mutual funds can also be industry-specific (such as a mutual fund consisting only of energy stocks, green bonds, or tech companies, and so on).

29. Net Income

When talking about investing, net income usually refers to how much a company makes (or its total losses) after it has paid all its expenses. Net income is therefore usually calculated by subtracting a company’s expenses from its revenue. Investors may want to know a company’s net income because it can help determine how profitable the company is, although EBITDA (defined above) is another measure.

30. Over-the-Counter Stocks

Not all stocks are publicly traded. These “private” stocks, often called over-the-counter stocks, usually have to be traded through a broker. Companies may offer OTC stocks if they don’t meet the requirements to be traded publicly. Such companies are often startups or other small companies. So, while these companies may eventually grow to be able to trade publicly, investing in them also carries the risk that they may fold or even engage in fraudulent activity since the market is far less regulated than publicly traded markets are.

31. Price-to-Earnings Ratio

Investors commonly use P/E, or price-to-earnings ratios, to gain insight into how profitable a company is compared to its stock price. In other words, price-to-earnings ratios can help investors decide if the price of a stock is worth it when compared to how much a company is making.

32. Prime Interest Rate

Banks are likely to offer their best customers — those with the best credit histories and the lowest risk of defaulting — a prime interest rate for a loan. The prime interest rate is generally the lowest rate the bank will offer. A bank’s criteria for determining their prime interest rate may vary, but most banks consider the federal funds rate when setting any interest rate.

33. Portfolio Management

Portfolio management simply refers to how you select and manage the investments in your portfolio. There are many different management styles, such as active or passive, growth or value. Additionally, you can elect to manage your own portfolio or hire an individual or group to manage it for you.

34. Preferred Stock

A preferred stock means investors own shares in a company and get scheduled dividends, similar to how bond interest payments work. Preferred socks may not fluctuate in price like common stocks do, meaning they are often less volatile and risky.

35. Profit & Loss Statement

You probably know what profit and losses are, but do you know how to read a company’s P&L, or profit & loss statement? It can help you determine a company’s bottom line, as it can show you how well a company is doing compared to its peers in the same industry. If you’ve never read one before, this article about profit & loss statements could give you some tips on what to look for.

36. Prospectus

Companies that offer stocks, bonds, and mutual funds to investors are required to file a prospectus with the Securities and Exchange Commission that provides details about the investment they are offering (e.g. the expense ratio, the constituents of a fund, and more). Investors can use the prospectus to better understand a given security and how it might fit in their portfolio, or not.

37. Recession

A recession is a period of economic contraction. The National Bureau of Economic Research (NBER) defines a recession further as a decline in monthly employment, personal income, and industrial production. As an investor, a recession may indicate a drop in the value of your portfolio, although this may be temporary: When looking at the history of U.S. recessions, the stock market has always rebounded, sooner or later, after recessions.

38. REIT

Real estate investment trusts (REITs) are a way that investors can further diversify their portfolios. Instead of having the responsibility of managing an investment property yourself, you can invest in REITs, which are generally large-scale real estate projects that investors can help fund in exchange for partial ownership. Most REITs are publicly traded and pay dividends to investors.

39. Retained Earnings

When looking for a company’s net income statement, you may come across the term “retained earnings,” also sometimes called unappropriated profit, uncovered loss, member capital, earnings surplus, or accumulated earnings. In general, retained earnings is the amount of money a company keeps and potentially reinvests after it gives its investors a dividend payout.

As an investor, knowing whether a company had positive retained earnings can help you determine how much money it has to continue growing. If its retained earnings are negative, that could be a sign the company is in debt and may not be a good investment.

40. Return on Equity

Return on equity, sometimes called return on net worth, can help investors compare how well companies are managing their stockholders’ contributions. You can calculate it using this formula: Net income/Average shareholder equity. A higher return on equity can signal to investors that a company is managing its money efficiently.

41. ROI

Return on investment (ROI) is just that: the return you get after making an investment in a stock, bond, mutual fund, and so forth. Investors generally hope for a positive ROI, meaning that their investment has made a profit. While a good ROI will vary depending on the type of investments you’re making, some investors look to the historic return of the stock market (about 7% annually) as a barometer.

42. Small Cap

A small-cap company usually has a market cap of $250 million to $2 billion. Investors may be attracted to a small-cap company because they believe it has growth potential or may be undervalued.

43. SPAC

SPAC stands for special purpose acquisition company. SPACs are shell companies that list shares on an exchange to raise money so they can merge with a privately held company. Once the merger between the public SPAC and the private company is complete, that company is now in effect a public company — which is why a SPAC is sometimes called a backdoor IPO. Many companies may elect to use SPACs instead of traditional IPOs because they are often faster and less expensive.

44. Stocks

If you’ve made it this far, you probably know what a stock is. To review, a stock is a way to buy a piece of ownership into a company. You can buy and sell your stocks depending on whether you anticipate your stocks will decrease or increase in value.

45. Stock Exchange

A stock exchange is the place where you buy, sell, or trade stocks. Common U.S. stock exchanges are the New York Stock Exchange (NYSE) and the Nasdaq.

46. Stop-Loss Order

A stop-loss order can help investors have more control over their stocks. When a stock reaches a certain price that you choose, your broker will sell, buy, or trade that stock. Having a stop-loss order can help you limit how much money you make or lose in the stock market.

47. Target Date Fund

A target date fund is a type of mutual fund that includes a mix of asset classes to provide investors with a portfolio that adjusts over time to become more conservative as they age. Target date funds are often used to help investors plan their retirements. Target funds are typically constructed around various target retirement years (e.g. 2030, 2040, 2050) so investors can pick a date that corresponds with their hoped-for retirement.

48. Value Stock

A value stock is a stock that investors believe is undervalued and/or inexpensive compared to its past prices on the stock market or with its competitors. Investors may consider a stock’s price-to-earnings ratio to help them determine if something is a value stock.

49. Venture Capital

Venture capital is money a startup uses to grow its business. This money usually comes from private investors or venture capital firms. Investors may elect to invest venture capital into startups they believe have the potential to be profitable with time.

50. Yield

Yield is another way of referring to the return of an investment over a set period of time, expressed as a percentage. You may hear the term in relation to bonds (e.g. high-yield bonds), but yield is more accurately a measure of the cash flow an investor gets on the amount they invested in a security during that time period, and is different from total return.
💡 Quick Tip: The best stock trading app? That’s a personal preference, of course. Generally speaking, though, a great app is one with an intuitive interface and powerful features to help make trades quickly and easily.

The Takeaway

Getting familiar with a few key investing words and phrases can go a long way in helping you gain confidence when you’re new to investing. Getting fluent with investing terminology is like any other pursuit — there’s a learning curve at first, but the terms will feel more natural as you move forward and start investing regularly.

Learning key investing terms and definitions is only the beginning, though. Putting your knowledge into practice is another thing entirely. Although, it is helpful to know the lingo before diving into investing.

Ready to invest in your goals? It’s easy to get started when you open an investment account with SoFi Invest. You can invest in stocks, exchange-traded funds (ETFs), and more. SoFi doesn’t charge commissions, but other fees apply (full fee disclosure here).

For a limited time, opening and funding an Active Invest account gives you the opportunity to get up to $1,000 in the stock of your choice.

FAQ

What are the main investment types?

There are many types of investments, but perhaps the main investment types would include stocks, bonds, funds (mutual funds, index funds, exchange-traded funds), and options, though there are more.

What is the basic rule of investing?

There are many guidelines investors might want to follow, but the basic rule of investing is that you shouldn’t invest more than you’re comfortable losing – which is associated with an investor’s risk tolerance.

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