2082 Michelson Dr. Suite 100. Irvine CA 9261 CALL TODAY: 877-234-5553

CALL TODAY: 877-234-5553

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New Strategic Partnership Announcement

New Strategic Partnership Announcement


We are pleased to announce a new strategic partnership between Direct Finance Corporation and Standard Realty Group. “Our goal is simple, set the standard as the world’s most customer-focused real estate company,” says owner Zachary De Bernardi.

The new partnership creates a synergy for Standard’s realty clients to receive the best in service and technology from Direct Finance’s seasoned loan officers who are dedicated to educating and facilitating the best financing options possible.

Both companies share the vision to build a better, ethical process which focuses on providing value and transparency with guaranteed, exceptional service.

“We could not be more excited for this opportunity,” says Abe Arnous, owner of Direct Finance. “We work tirelessly to serve our clients and endlessly to earn their trust. We know this will be a successful endeavor for all involved.”

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Direct Finance Corp and Proper Real Estate form Win-Win Partnership

We are excited to announce the partnership between Direct Finance Corporation, a 5-Star reviewed direct lender specializing in purchase transactions, and Proper Real Estate, an omni-service real estate brokerage, to become their exclusive in-house lender. This partnership joins two dynamic forces in the real estate industry to create a win-win for clients with exceptional service and a streamlined buying process.

“Buyers can rest assured that Direct Finance is there to hand hold them from start to finish and ensure their transaction closes with transparency, quickness and great service,” says Direct Finance owner Abe Arnous. Proper demanded only the best for their clients and Direct Finance was the only company that met their high expectations. “We can’t express how excited we are for this partnership that we believe will be wildly successful!” says co-owner Paul Natividad.

This consummation was recognized at a Launch Event Party at Michael’s on Naples in Long Beach. Teams from both sides are highly enthusiastic and looking forward to many successful closings.

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From Left to Right: Direct Finance Team, Kevin Grant, Zach Johnson, Ryan Rodriguez, Ken Brower, Lisa Assouad, Abe Arnous ‐ Owner, Alex Aguillares, Preston Potts. Front Row: Proper Real Estate Owners, Paul Natividad and Jenny Pok.

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How does Inflation Affect Interest Rates

How does Inflation Affect Interest Rates

The world economy came to a standstill in March of 2020. Deflation was the effect of consumers cutting back on their usual spending habits, such as eating out, traveling, and other indulgences. A price rise was in the works once the pandemic lockdowns were removed since stimulus money was flooding into customers’ bank accounts.

According to the financial analyst, prices would rise when the economy returned to normal. After all, the only way to measure inflation is to compare current prices to those from the previous year.

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Understanding Inflation Rate

Due to rising prices, the inflation rate suggests an increase in demand for certain items. Across the board, prices have been steadily rising. In general, economic growth is connected with moderate inflation, but an overheated economy is indicated by high inflation.

The purchasing power of the currency decreases as prices rise. For a country’s economy to run smoothly, it is essential to keep inflation under control.

As the economy grows, more money is spent by both consumers and corporations. When the economy is booming, corporations can raise their prices because demand outpaces supply.

As a result, inflation rises. Growth in the economy is directly linked to an increase in consumer demand.

Moreover, consumer expenditure is up considerably from a year earlier. The temporary reasoning, on the other hand, held that after consumers had spent all of their money, everything would return to normal.

Borrowing is encouraged by the unusual combination of rising inflation and cheap mortgage rates. This is because the “actual” cost of repaying a mortgage today lowers over time if long-term interest rates do not rise in lockstep with inflation.

Mortgage rates are affected by inflation

Mortgage rates are heavily influenced by inflation. That’s because mortgage rates are determined by the bond market. MBS (Mortgage-Backed Securities) are like 10-Year Treasurys in that investors buy bundles of mortgages and receive interest on them.

Mortgages are constantly being traded between investors. Assuming you have a fixed-rate mortgage, your monthly payments will be the same regardless of what happens. You may, however, face higher loan rates if you opt to buy or refinance a property at a time when inflation is strong.

Those who have mortgages, in particular, stand to benefit greatly from inflation. The cost of borrowing is reduced if you can pay back the debt in ever-cheaper dollars. However, this is not the case. Automobiles, appliances, and building supplies are still in limited supply.

It’s hardly a given that mortgage rates will climb. Consumer prices have risen, making a rate increase more likely.

To put it another way: Inflation directly impacts the buying power of our money. When the cost of products and services continues to climb, money loses its value.
 
Inflation leads to higher wages for enterprises, which in turn creates more tax revenue for the government. Three. Inflation boosts profits for businesses, allowing the government to levy more taxes and earn more revenue.

When inflation is high, this is especially true. Analysts believe that the high cost of capital, which is the same as high-interest rates, reduces the quantity of capital that is sought. Demand for capital falls, which lowers investment rates. Due to rising interest rates and inflationary conditions, employment will be severely affected if people cease investing.

Inflation affects the balance of payments. Economists believe that inflation reduces the country’s net export earnings. Domestically manufactured goods are unable to compete with lower-cost imports, resulting in a negative balance of payments for the country. The buying power of individuals and businesses decreases when the cost of borrowing increases. If demand for products and services decreases, prices should fall as a result.

Inflation has a direct effect on the lending and borrowing markets. The value of money owing to creditors diminishes if the cost of goods and services rises. As a result, lending and borrowing money is becoming increasingly difficult for the vast majority of people. It’s more difficult for retailers to offer credit-based products when there’s inflation.

What is Interest Rate?

Borrowing money from a bank or financial institution incurs a fee known as interest. Investments, such as stock and bond prices, are heavily influenced by interest rates. Inflation and interest rates are inseparably connected. In macroeconomics, they are often used interchangeably.

The interest rate is determined by taking into account two factors:

  1. Capital becomes prohibitively costly as interest rates rise.
  2. Investing in a bank will be less profitable if interest rates are too low.

How does Inflation Affect Interest Rates

Inflation and interest rates grow in unison when inflation is on the rise. Goods’ prices frequently rise steadily over time. Consequently, the current pound is worth more than the pound of tomorrow.

Mortgage rates will rise as a result of rising prices. Yes, this is true to a considerable extent. A mortgage interest rate will be lower if the inflation rate is greater. As inflation rises, so does the interest rate.

After a pandemic, the road to recovery can be complicated. When it comes to predicting how changes in the economy would affect mortgage rates, it hasn’t always been straightforward. There is disagreement among investors and economists as to whether or not we will see a runaway inflationary trend shortly.

Inflation can be beneficial to the economy on occasion. Inflation may be a good thing if it’s kept to a manageable level. Because they know costs will rise in the future, consumers tend to spend now rather than wait until the last minute. Economic growth is fueled by consumer spending.

With the increase of the Bank rate, inflation can be slowed. Inflation is a measure of cost increases over time that affects everything from food prices to retirement savings.

There is no way to predict where mortgage rates will go in the future. However, if inflation takes hold, mortgage interest rates are very certain to rise in the future.

If the government is correct about inflation easing off within a few months, they may possibly rise considerably higher.

That’s because mortgage rates tend to rise when the economy improves. Furthermore, most experts anticipate that the economy will soon rebound.
 
Making long-term financial planning that accounts for inflation is essential if you want your money to go further.

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Should you refinance your mortgage?

Should you refinance your mortgage?

Investing in a property is a wise move. Refinancing your mortgage is one option to use your house as an investment fund. Refinancing may be done for a variety of reasons, including obtaining additional funds from your house, reducing your monthly payment, and decreasing the length of your loan.

Like many other homeowners, you’ve certainly been bombarded with offers from lenders promising that refinancing your mortgage at a cheaper rate can save you hundreds of dollars each month. If you’re considering refinancing, you might be thinking if now is the best time.

The first thing you need to know before deciding whether or not to refinance your mortgage is how much you can save and how much it will cost you.

Refinancing a Home Loan

Refinancing is changing your current mortgage for a newer one with a different interest rate and a different principle. You’ll only have to make one payment per month when your lender pays off the old mortgage using the proceeds from the new one.

Refinancing one’s house can be done for a variety of reasons. Your home’s equity can be used in a cash-out refinance or a rate-and-term refinance to lower your monthly payment.

Refinancing a mortgage can also be used to remove a spouse from the loan, which is common in divorce cases. Finally, you can include another borrower on your mortgage.

Refinancing makes sense, according to a financial consultant, if you can lower your interest rate and plan to stay in your home for at least three years.

Refinancing can also be used to consolidate debt, fund home renovation projects, or switch the type of loan you currently have. So if you have an adjustable-rate mortgage, switching to a fixed-rate loan may help you avoid higher monthly payments if the rate rises after the first fixed term has passed, for example.

Is Refinancing a Good Idea?

There is, if you’re searching for a rapid payoff and a shorter duration. A cash-out refinance is an option if you have enough equity in your house to refinance into a loan without mortgage insurance.

A cash-out refinance as well as a rate and term refinancing It’s possible to take out a new mortgage loan that’s more than the amount of your present mortgage. It’s up to you what you do with the extra money.

Rate and term refinancing, on the other hand, involves taking out an equal-to-your-current-mortgage loan from a new lender. Your old loan is paid off, and you may be able to receive a better rate or better conditions on a new one.

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Mortgage Refinancing Advice

If you have less than 20% equity in your home, lenders will often need mortgage insurance. If you default, it safeguards their financial interests. If you’re looking to save money by refinancing, make sure to include in the cost of mortgage insurance.

Refinancing fees might be compared to your present monthly payment to see if it’s worth the effort.

Several online calculators may help you estimate your savings by inputting the new loan amount, the interest rate, and the loan period. Take use of it to get a sense of how much money you’ll be spending each month.

Aside from the appraisal and credit check, there are also origination and closing expenses to consider when figuring out how much you may save by refinancing your home. Verify if paying off your present debt early is subject to a fee as well. As soon as you know what interest rate you can get, you’ll be able to figure out how much money you can save each month by renegotiating the terms of your current loan.

Ask your lender to run the figures on a loan term equivalent to the length of your present mortgage. Mortgage rates may be lowered, payments can be reduced, and interest can be saved by not extending the duration of your loan.

You may save money on your monthly interest payments by refinancing your mortgage at a lower interest rate. If you pick a longer or equivalent loan period, your payments will be cheaper as a result.

Refinancing from a longer to a shorter loan term can also help you save money on interest.

It’s possible to free up income to pay off high-interest credit card debt by cutting your mortgage payment or refinancing for a cash-out.

With the monthly savings from refinancing your mortgage, you’ll have extra cash on hand to make much-needed repairs and upgrades around the house.

Take-Aways

Refinancing is a terrific method to make the most of your home’s equity when the time is perfect. To save money in the long run, you can amend your loan duration, receive a lower interest rate, or change your loan type. You can also take a loan against the equity in your house and pay it off as you see fit.

You should consider if your present residence will be suitable for your current and future needs. If you refinance while you’re near to beginning a family or having an empty nest, you may not stay in your property long enough to break even.

Credit card debt, new vehicle purchases, and student loan debt may all reduce your credit score. This is why it’s important to keep an eye on your credit score while applying for a new mortgage. It’s a good idea to work on improving your credit first before looking into refinancing.

Waiting until you’ve paid off some debt, ensuring sure there are no errors in your credit report and allowing your credit history to heal over time with timely payments might all help you get a better deal on your mortgage.

You may accumulate wealth by reducing your monthly mortgage payment. Keep up with your present mortgage payments and work on boosting your credit if refinancing now isn’t the best option for you.

Refinancing should cut your monthly payment and lower your interest rate, saving you money over the short and long term. However, you’ll want to make sure that your savings are substantial enough to prevent you from losing money on the refinance.

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CALL TODAY: 877-234-5553