long term – John Hesch http://johnhesch.com/ Tue, 15 Mar 2022 11:11:35 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://johnhesch.com/wp-content/uploads/2021/07/icon-150x150.png long term – John Hesch http://johnhesch.com/ 32 32 HELOC potential “20 times greater than that of a second mortgage”, says CEO https://johnhesch.com/heloc-potential-20-times-greater-than-that-of-a-second-mortgage-says-ceo/ Mon, 14 Mar 2022 16:19:41 +0000 https://johnhesch.com/heloc-potential-20-times-greater-than-that-of-a-second-mortgage-says-ceo/ Hubert Fenwick, co-founder and CEO of fintech Selina Advance, said there is a “huge opportunity” for the UK mortgage industry to commercialize home equity lines of credit (HELOCs), which could potentially generate £25bn. pounds per year. The company is said to be the first in the UK to market a HELOC, a type of second […]]]>

Hubert Fenwick, co-founder and CEO of fintech Selina Advance, said there is a “huge opportunity” for the UK mortgage industry to commercialize home equity lines of credit (HELOCs), which could potentially generate £25bn. pounds per year.

The company is said to be the first in the UK to market a HELOC, a type of second mortgage which allows homeowners to borrow against the value of their home and access cash.

However, unlike a second mortgage, a HELOC allows the borrower to withdraw cash as needed instead of a lump sum. HELOCs are a more common mortgage product in the United States, where they are normally used to pay for repairs, renovations and even training courses.

home ownership price

Revealed – percentage of Londoners unhappy as property prices continue to rise

Speaking to Mortgage Introducer last week, Fenwick said there was a large untapped market for HELOCs in the UK.

He said: “If you look at the size of the US market – $130bn a year on an individual basis – that would imply the market is around £25bn (in the UK). That’s about 20 times the size of a second load market.

A 2016 report by data analytics firm Corelogic noted that the HELOC market peaked in the United States in 2005, when creations totaled nearly $364 billion, dropping to around $150 billion in 2015, although a separate 2017 report estimated that demand for the product would double. by this year.

Since 2020, when Selina Advance gained regulatory approval for consumer lending, the company has issued over $100 million in loans with HELOC products in the UK.

The company recently raised $150 million in Series B funding, while existing investors are also pitching in to raise $35 million in equity. In addition, $115 million of debt has been guaranteed by Goldman Sachs to fund further expansion to first public securitization.

Fenwick, who co-founded the company with COO Leonard Benning in 2019, went on to explain the benefits of the product. He said: “The main attraction is that it doesn’t affect the (borrower’s) mortgage. It rests on top; kinda like a second charge. But it’s also flexible, so you don’t have to pull at any time. It’s like a credit card in that you only pay interest for the funds you need.

He also pointed out that there are no prepayment charges with a HELOC and the borrower is not tied to higher interest debt. “You are not bound in any way. You don’t have to draw anything you’re approved for, so it’s really empowering for owners.

According to a report by US personal finance company, Nerdwallet, the main disadvantage of a HELOC is that it increases the risk of foreclosure if the borrower is unable to repay the loan. It is also not suitable if the borrower’s income is unstable or if he cannot pay the initial fees.

Fenwick, however, stressed that the company wanted to be “very incentive aligned with our borrowers.”

He said: “The maximum we’ll go into is 85% LTV, so we’re still keeping a decent share of the equity in their homes – and they obviously have an incentive to preserve that value.”

He pointed out that while some second-charge lenders were lending up to 120%, Selina Advance would not follow. “We want it to be a tool for financial empowerment and for people to make smart financial decisions and save money. We don’t really see it as a tool to just add more leverage or take on more debt.

When asked why the product didn’t catch on earlier in the UK, he said: “The UK banking system is very oligopolistic. There has been very little innovation in many areas. They have huge mortgage companies, huge credit card companies, huge

current account businesses, but they haven’t really focused on creating new products that really benefit owners.

Although Fenwick said he expected demand for HELOC to “explode in the UK over the next five years”, he added that it would take time to educate customers and loan advisers. mortgages.

“We’re building a business for the very long term – you don’t educate a market overnight,” he said. “The US was the pioneer of credit cards, but it took the UK about 10 years to catch up and now credit card usage and penetration is almost identical in the UK and United States.”

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Ronaldo and Rashford are not in charge at Manchester United https://johnhesch.com/ronaldo-and-rashford-are-not-in-charge-at-manchester-united/ Tue, 08 Mar 2022 11:28:59 +0000 https://johnhesch.com/ronaldo-and-rashford-are-not-in-charge-at-manchester-united/ Why is the media claiming there will be an ‘exodus of strikers’ when Cristiano Ronaldo and Marcus Rashford are under contract at Manchester United? Exclusive R and RWe can only assume that the “OLD TRAFFORD EXCLUSIVE” trumpeted on the last page of The sun that Cristiano Ronaldo and Marcus Rashford could leave Manchester United is […]]]>

Why is the media claiming there will be an ‘exodus of strikers’ when Cristiano Ronaldo and Marcus Rashford are under contract at Manchester United?

Exclusive R and R
We can only assume that the “OLD TRAFFORD EXCLUSIVE” trumpeted on the last page of The sun that Cristiano Ronaldo and Marcus Rashford could leave Manchester United is that only Neil Custis has put together the two widely available pieces of information; it is an exclusive confusion.

He tells us that “CRISTIANO RONALDO’s future at Manchester United is in serious doubt after missing Sunday’s derby”, but it’s not even the first time that Custis himself has told us this particular story because in January, he wrote that “CRISTIANO RONALDO is set to leave Manchester United in the summer if the club do not qualify for the Champions League”.

We are patiently awaiting details on which club will shoulder Ronaldo’s mammoth salary next season after the sh*t-show of his return to Manchester United.

But that’s not about The Sun, who gleefully state that ‘Missing Cris faces United exit’. Will they fire him? Pay his contract? Are these balls. The truth is he’s not ‘facing the United exit any more’ now than he did last week.

We are then told that “a frustrated Marcus Rashford is now open to leaving Old Trafford for the first time in his career”, a story which broke on Monday morning in various places including the Manchester Evening News.

Put the two together and it’s an ‘OLD TRAFFORD EXCLUSIVE’, apparently. How the hell do they get these scoops?

Do Ron, Ron, Ron
On the inside pages, Custis writes about Ronaldo’s farrago and concludes that it was quite a terrible decision to sign the global superstar. We agree.

“Ole Gunnar Solskjaer’s long-term planning had not taken this seismic signature into account.

“He knew he couldn’t let him go to City, where he could be on 20 goals now in a much superior team.”

“Yet, did he really need him, with all the attention and showbiz that ensues?”

Curiously, Custis didn’t ask that question when Ronaldo was signed and he wrote that ‘CRISTIANO RONALDO is the final piece of the puzzle. Now the pressure is on boss Ole Gunnar Solskjaer to win that Premier League title.

Then we were told Solskjaer was ‘preparing to put out probably Manchester United’s best side in over a decade against Newcastle’. As it was a decade in which Manchester United won the Premier League title, it was a nice statement. It was also absolute bullshit.

After the Newcastle game, the revelations about The Churchillian speech (of course) of Cristiano Ronaldo and all was well in the world because it was Ronaldo and Manchester United could now win the title.

He was then “the last piece of the puzzle” and now he is apparently the man who cost Ole Gunnar Solskjaer his job.

“It’s clearer now than ever that Solskjaer was making progress.

“Second place in Prem last season and in the Europa League final.”

So to conclude: Ronaldo was going to help Manchester United fight for the title and in the end he stopped Manchester United fighting for the title.

A whole new team
The tabloids love a lot and The sun tell us ‘Manchester United’s 16-man future is up in the air, with the club facing a massive overhaul this summer’.

That sounds like a lot until you realize that among those 16 Manchester United players are Phil Jones, Juan Mata, Brandon Williams, Andreas Pereira, Facundo Pellistri and Tahith Chong. So just “16 Manchester United players” in the loosest sense.

Indeed, the only one of those 16 players who started against Manchester City on Sunday is Paul Pogba. So when another piece promises to show us ‘How Man Utd could line up next season with a fresh looking XI after Cristiano Ronaldo’s exit with 16 players’ futures in doubt’, we’re amazed that in fact, United are not only going to lose 16 players but then sign Harry Kane, Christopher Nkunku, Manuel Akanji, Declan Rice and Kalvin Phillips.

Sounds like a lot of business for a Europa League club.

blowjob
Harry Kane will clearly be rushing to join Manchester United but “the pursuit of Erling Haaland’s transfer is a ‘straight contest’ between Man City and Real Madrid in a blow to Man Utd” (The sun), Apparently.

The team currently fifth in the Premier League must be in shock at this news.

Red movement
What’s amazing is that Harry Kane is still at Tottenham after deciding to leave last summer. It’s almost as if footballers aren’t entirely in control of their destiny once they’ve signed a contract. That fact certainly seems to have been lost in all the talk of ‘Manchester United facing a striker exodus’ in the Daily mail.

Chris Wheeler and Sami Mokbel combine to write that ‘Rashford’s future is increasingly uncertain as he approaches the final year of his contract, while Cristiano Ronaldo, Edinson Cavani and Anthony Martial also consider exits’ .

Rashford may be “nearing the final year of his contract”, but Wheeler himself told us two months ago – the last time Rashford made noise to leave Manchester United – that “United have the option to extend for another year.

So the ‘attacking exodus’ is effectively Cavani – who has started six Premier League games this season – leaving at the end of his contract, while the unwanted and on-loan Martial could also find a permanent employer, who would surely be welcomed by Uni.

As for Ronaldo, this paragraph is just extraordinary:

“The club would like to keep Ronaldo for the second year of his contract, but doubts are growing within the hierarchy at Old Trafford that he can be persuaded to stay – particularly if United are not in the League of Nations. champions.”

“Persuaded to stay”? He has a year left on a salary of £500,000 a week. They don’t have to “persuade” him of anything.

“The challenge for Ronaldo and his agent Jorge Mendes will be finding a top club willing to match his £500,000-a-week salary.”

You think?

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Can you finance an engagement ring with bad credit? https://johnhesch.com/can-you-finance-an-engagement-ring-with-bad-credit/ Mon, 28 Feb 2022 16:02:06 +0000 https://johnhesch.com/can-you-finance-an-engagement-ring-with-bad-credit/ Our goal at Credible Operations, Inc., NMLS Number 1681276, hereafter referred to as “Credible”, is to give you the tools and confidence you need to improve your finances. Although we promote the products of our partner lenders who pay us for our services, all opinions are our own. You may be able to get financing […]]]>

Our goal at Credible Operations, Inc., NMLS Number 1681276, hereafter referred to as “Credible”, is to give you the tools and confidence you need to improve your finances. Although we promote the products of our partner lenders who pay us for our services, all opinions are our own.

You may be able to get financing for an engagement ring with bad credit through personal loans, credit cards, or in-store financing. (Shutterstock)

Buying an engagement ring is exciting, but figuring out how to finance that important purchase can be daunting. The national average cost of a diamond engagement ring is $6,000, according to The Knot 2021 Jewelry and Engagement Study. But if you’re like a third of engagement ring shoppers, you’ll probably spend $1,000 to $4,000.

You can finance an engagement ring with bad credit, although it may not be the right option for your long-term financial goals. Let’s take a look at where you can get financing for an engagement ring with bad credit, what factors to consider, and if it’s the right option for you.

With Credible, you can compare personal loan rates from various lenders in minutes.

Can you get financing for an engagement ring with bad credit?

Yes, it is possible to finance an engagement ring even if you have bad credit. But keep in mind that even if you may be approved for a financing plan, you may not be able to get the best rates and terms.

Lenders look at your credit score and history to determine the rate to offer you. If you have a lower credit score or little or no credit history, lenders consider you a riskier borrower than someone with good to excellent credit. So, lenders will charge higher rates or offer stricter terms to compensate for the risk of someone with bad credit defaulting on the loan.

What credit score do you need to finance an engagement ring?

Since some lenders work with people with bad credit or shallow credit histories, it’s possible to finance an engagement ring with virtually any credit score. But FICO scores of 579 and below are considered bad credit, which lowers your chances of getting financing with low rates and flexible terms.

Where to get financing for an engagement ring with bad credit

Regardless of your credit score, you have several options for financing an engagement ring. Keep in mind that your credit history and financial situation will determine which one is best for you.

Here are some engagement ring financing options to consider.

Personal loan

Personal loans are usually unsecured, meaning you don’t have to provide collateral for the loan. You can use them for a variety of purposes and they are available from banks, credit unions, and online lenders.

Some best personal loans have fixed rates, long repayment terms and a fast application process. Although personal loans for bad credit are available, these options are limited, may include additional fees, and approval time may take longer.

Credible, it’s easy to compare personal loan rates from multiple lenders — without affecting your credit.

Finance through a jewelry store

In-store financing can be a convenient option, especially when the jeweler extends a 0% purchase APR for a specified period. Store credit cards can be easier to secure with poor credit, and they can offer rewards when used in-store.

But many of these cards can only be used in a specific business. And if you still have a balance when the promotional period expires, you’ll start earning interest at the card’s regular rate – and retail credit card rates tend to be much higher than credit cards. traditional.

Credit card

Paying for an engagement ring with a credit card allows you to continuously draw down and pay down your line of credit. If you make your payments on time, it can even help improve your credit.

Similar to in-house jewelry financing, some credit cards come with 0% APR introductory offers, which could help you avoid paying interest for a while. But like other introductory APR offers, you’ll start earning interest if you still have a balance when the offer ends.

Ready to buy now, pay later

A buy now, pay later loan lets you split a large purchase into several interest-free payments. Some lenders do not require credit checks or extensive credit applications to qualify.

Interest-free installments are an advantage if you can’t afford to pay more than the original purchase price. The downside is that you may need to provide a down payment and the amount of credit given to you may be limited.

What to Consider When Choosing Engagement Ring Financing

A commitment is an important milestone to celebrate, but just because your funding is approved doesn’t necessarily mean it’s the right option for you. Consider the following when choosing engagement ring financing:

If you want to use a personal loan to fund an engagement ring, Credible lets you compare personal loan ratesall in one place.

Should you finance an engagement ring?

The best way to buy an engagement ring is to save money so you don’t have to finance the purchase. This allows you to avoid interest charges and the stress of keeping up with a monthly payment.

But financing an engagement ring can make sense if you can get a good interest rate, comfortably make monthly payments, and improve your credit in the process. If you can only qualify for a credit card or a high-interest loan, or if the monthly payments are putting too much of a strain on your budget, financing an engagement ring could turn your token of love into debt. stressful.

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Average Small Business Loan Size https://johnhesch.com/average-small-business-loan-size/ Tue, 08 Feb 2022 21:39:35 +0000 https://johnhesch.com/average-small-business-loan-size/ Owning a business can be expensive and unexpected expenses tend to arise. For small business owners who need additional funds, small business loans could be a great option. There are many factors to consider when choosing a small business lender, such as eligibility requirements, loan amount options, and repayment terms. Small business owners can also […]]]>

Owning a business can be expensive and unexpected expenses tend to arise. For small business owners who need additional funds, small business loans could be a great option. There are many factors to consider when choosing a small business lender, such as eligibility requirements, loan amount options, and repayment terms.

Small business owners can also take out loans from the United States Small Business Administration (SBA). The SBA helps small business owners obtain loans from traditional lenders and some non-traditional lenders. To decide which is right for you, consider the average loan amounts available for each type of small business loan and lender.

Key Small Business Loan Statistics

According to the latest data from the Federal Reserve:

  • The average small business loan size is $663.00
  • The average size of small business loans from other lenders is $80,000
  • Small business loans can range from $13,000 to $1.2 million
  • Small business loans from alternative lenders range from $5,000 to $200,000

This average does not take into account the different types of loans and offers from lenders.

Average small business loan size by loan type

The right small business loan for you depends on the amount you want to borrow and the term that suits your needs. Some loans are better suited for large investments, while others are best used to meet short-term needs.

SBA loans are best suited for larger investments because borrowing limits are high and the SBA offers borrowers a variety of benefits, including flexible overhead requirements and lower down payments. The SBA works with bank lenders to offer loan programs, including the popular 7(a) loan program, which allows borrowers to take out up to $5 million.

Medium-term loans and short-term loans are usually offered by online alternative lenders and may be better suited to smaller, shorter-term needs. Mid-term loans have much higher borrowing limits than short-term loans, making them ideal for borrowers looking for a slightly larger sum.

Type of loan Average quantity
SBA Loans $107,000
Medium-term loans $110,000
Short term loan $20,000

Average Small Business Loan Size by Lender

Besides the type of loan you take out, the amount you can borrow depends on the type of lender you choose. Large domestic and foreign banks lend more on average than small regional banks. Alternative lenders tend to offer a narrower range of loan amounts.

Loan amounts vary widely by loan type, making it crucial for small business owners to determine which type of lender is best for them.

According to the Federal Reserve, here are the average loan amounts by type of lender:

Lender Average quantity
Major National Banks $593,000
Regional banks $146,000
Foreign banks (made by US branches) $8,512,000
Alternative lenders $50,000 to $80,000

Who are the alternative lenders?

Alternative lenders are largely online lenders and have grown in popularity as an alternative to traditional bank lenders. Alternative lenders often have more flexible qualifications and terms, allowing borrowers with bad credit to take out loans they may not qualify for from a traditional lender. Online lenders tend to offer a smaller range of loans, usually between $5,000 and $200,000. However, the average ranges vary depending on the individual lender.

These lenders are best suited for short-term needs and small expenses. Alternative loans are also a great option for those who prefer an online experience. Below are some of the best alternative small business lenders and their average loan amounts.

Lender Average quantity
BlueVine $25,000 to $30,000
Credible $53,000 to $56,000
Checkout $5,000 to $40,000
On the bridge $40,000

Where to find business loans

Small business loans vary widely by loan type and lender, so you’ll likely find the best option by shopping around before you apply. If you need more than $100,000, an SBA loan or a mid-term loan is probably your best option. SBA loans connect you with banks that are specifically looking to work with small businesses, and the SBA covers up to 85% of any loss in the event of default. SBA loans also offer competitive rates and generally have lower down payments.

If you are looking for a smaller loan for short-term expenses, a short-term loan from a small bank or an alternative loan might suit you best. Alternative online lenders tend to offer better rates and more flexible terms. Online lenders are also more likely to have unique features and borrowing options such as bad credit loans and invoice factoring, which allow you to borrow against unpaid invoices.

If you want to take out a loan online, look for online lenders that offer business loans. For traditional bank loans, contact a bank you have worked with before, as establishing a relationship may lead to better rates and terms. If you want to apply for an SBA loan, start by taking the association’s Lender Match program. Before choosing a lender, be sure to calculate your estimated monthly payment using a business loan calculator.

Conclusion

The average small business loan size varies greatly depending on the type of loan you take out and the lender you choose. Small business loans come in a variety of formats and features, including long-term business investments and payroll coverage when income is low. Borrowers looking for large sums and longer repayment terms are probably better off looking at SBA and large bank loans, while borrowers looking to cover smaller expenses should consider smaller banks or alternative loans. .

Always compare interest rates, repayment terms, loan amounts, eligibility criteria, fees, and other factors when selecting a loan to ensure you find the most affordable option. for your situation.

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February 8, 2022: Mortgage interest rates continue to climb https://johnhesch.com/february-8-2022-mortgage-interest-rates-continue-to-climb/ Tue, 08 Feb 2022 14:00:00 +0000 https://johnhesch.com/february-8-2022-mortgage-interest-rates-continue-to-climb/ Jim Lane/Getty A number of mortgage rates jumped today to their highest levels since the start of 2020, including 15-year and 30-year fixed mortgage rates. We also saw a significant rise in the average 5/1 adjustable rate mortgage rate. Mortgage rates have been quite low over the past period, making it a good time for […]]]>

Jim Lane/Getty

A number of mortgage rates jumped today to their highest levels since the start of 2020, including 15-year and 30-year fixed mortgage rates. We also saw a significant rise in the average 5/1 adjustable rate mortgage rate. Mortgage rates have been quite low over the past period, making it a good time for potential buyers to lock in a fixed rate. But rates are dynamic and should continue to rise. Before buying a home, remember to consider your personal needs and financial situation, and speak with several lenders to find the best one for you.

30 Year Fixed Rate Mortgages

The average 30-year fixed mortgage rate is 3.93%, up 15 basis points from seven days ago. (One basis point equals 0.01%.) The most commonly used loan term is a 30-year fixed mortgage. A 30 year fixed rate mortgage will usually have a lower monthly payment than a 15 year one, but usually a higher interest rate. You won’t be able to pay off your home as quickly and you’ll pay more interest over time, but a 30-year fixed rate mortgage is a good option if you’re looking to minimize your monthly payment.

15-year fixed rate mortgages

The average rate for a 15-year fixed mortgage is 3.28%, an increase of 10 basis points compared to the same period last week. Compared to a 30-year fixed mortgage, a 15-year fixed mortgage with the same loan value and interest rate will have a higher monthly payment. But a 15-year loan will usually be the best deal, if you can afford the monthly payments. You will most likely get a lower interest rate and pay less interest in total because you are paying off your mortgage much faster.

5/1 Adjustable Rate Mortgages

A 5/1 ARM has an average rate of 3.95%, up 18 basis points from a week ago. You’ll typically get a lower interest rate (compared to a 30-year fixed mortgage) with a 5/1 variable rate mortgage in the first five years of the mortgage. However, changes in the market may cause your interest rate to increase after this period, as stated in the terms of your loan. If you plan to sell or refinance your home before the rate changes, an ARM might be right for you. Otherwise, market fluctuations mean that your interest rate may be significantly higher once the rate is adjusted.

Mortgage Rate Trends

While 2022 started off with low mortgage rates, they have recently seen a rise. There are two major factors at play here: rising inflation rates and a growing economy. That said, rates can always go up and down for a variety of reasons. The spread of the omicron, for example, kept rates relatively low throughout December and into the new year. Overall, rates are expected to rise in 2022, notably with the decision of the Federal Reserve to reduce its bond purchases and to increase interest rates.

We use data collected by Bankrate, which is owned by the same parent company as CNET, to track daily mortgage rate trends. This table summarizes the average rates offered by lenders nationwide:

Today’s Mortgage Interest Rates

Rates correct as of February 8, 2022.

How to Find Custom Mortgage Rates

You can get a personalized mortgage rate by contacting your local mortgage broker or using an online calculator. In order to find the best home loan, you will need to consider your current goals and finances. Specific mortgage interest rates will vary based on factors such as credit rating, down payment, debt-to-income ratio and loan-to-value ratio. Having a good credit score, a higher down payment, low DTI, low LTV, or any combination of these factors can help you get a lower interest rate. The interest rate isn’t the only factor that affects the cost of your home. Also, be sure to consider other factors such as fees, closing costs, taxes, and discount points. You should speak with a variety of lenders – including local and national banks, credit unions, and online lenders – and a comparison store to find the best mortgage for you.

What is the best loan term?

When choosing a mortgage, you need to consider the length of the loan or the payment schedule. The most common loan terms are 15 and 30 years, although there are also 10, 20 and 40 year mortgages. Mortgages are further divided into fixed rate and variable rate mortgages. For fixed rate mortgages, interest rates are fixed for the term of the loan. Unlike a fixed rate mortgage, an adjustable rate mortgage’s interest rates are only stable for a certain period of time (usually five, seven or 10 years). After that, the rate adjusts annually based on the market rate.

An important factor to consider when choosing between a fixed rate and an adjustable rate mortgage is how long you plan to live in your home. For those planning on staying in a new home for the long term, fixed rate mortgages may be the best option. Fixed rate mortgages offer more stability over time than adjustable rate mortgages, but adjustable rate mortgages can sometimes offer lower interest rates upfront. If you don’t plan to keep your new home for more than three to ten years, an adjustable rate mortgage might get you a better deal. The best loan term is entirely up to your own circumstances and goals, so be sure to consider what’s important to you when choosing a mortgage.

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Nearly half of homes financed in the United States are now worth double the amount of their loan https://johnhesch.com/nearly-half-of-homes-financed-in-the-united-states-are-now-worth-double-the-amount-of-their-loan/ Thu, 03 Feb 2022 08:00:00 +0000 https://johnhesch.com/nearly-half-of-homes-financed-in-the-united-states-are-now-worth-double-the-amount-of-their-loan/ Rising home values ​​have been a boon for homeowners, with almost half of mortgaged properties now considered “equity-rich” by Attom Data Solutions. For many homeowners with mortgages, a long-term financial goal is to have a home fully paid off. Thanks in part to this hypercharged residential market, nearly half of these homeowners are now closer […]]]>

Rising home values ​​have been a boon for homeowners, with almost half of mortgaged properties now considered “equity-rich” by Attom Data Solutions.

For many homeowners with mortgages, a long-term financial goal is to have a home fully paid off.

Thanks in part to this hypercharged residential market, nearly half of these homeowners are now closer to the finish line than the starting point.

In the final months of 2021, rising house prices left 42% of homeowners in an equity-rich position, meaning their home’s market value was at least double the amount of their balance. of remaining loan, according to the last report from Atom Data Solutions.

At the same time the previous year, only 30% of properties with a mortgage had exceeded this threshold.

That’s a big boost for owners across most of the country, Attom product manager Todd Teta said in the report. But he added that the upward trend in home equity may not continue indefinitely.

“There is no doubt that there are market indicators that warn of the duration of the boom and the continued improvement in equity,” Teta said in the report. “We continue to monitor them closely. But for now, homeowners are sitting well as the wealth they have hidden in their homes continues to grow.

The rising tide in house prices has also improved the outlook for homeowners who were previously considered “seriously underwater” on their homes. This group has shrunk by nearly half over the past year, according to the report.

In the fourth quarter of the year, 3.1% of homeowners had loans that exceeded the value of their home by at least 25%, according to the report. During the same period the previous year, this group represented 5.4% of properties with a mortgage.

While conditions have been good for existing homeowners and their net worth, there are signs that price growth may also falter going forward. The report highlights declining housing affordability and investor earnings, as well as the prospect of further rising inflation and interest rates.

The regions with the highest concentrations of stock-rich owners were primarily located in the western United States. Idaho led the way, with more than two-thirds of its mortgaged properties worth double the loan amount. Utah had the second highest share of equity-rich homes, followed by Washington and Arizona.

Vermont was the only state outside the West that made the Top 10.

Meanwhile, states in the Midwest and South were more reliant on mortgages. In Illinois, less than 1 in 4 mortgage properties were stock-rich — the lowest share in the country. Louisiana nearly matched that percentage, with Alaska, Wyoming and Mississippi not much better off.

Still, although some regions are starting from a more enviable position than others, the gains have been widely felt by owners across the country.

The share of equity-rich properties increased in 48 states from Q3 2021 to Q4. The portion of properties that were severely underwater fell in 46 states during the same period.

Email Daniel Houston

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Celtic pull out of deadline day desperation as others charge https://johnhesch.com/celtic-pull-out-of-deadline-day-desperation-as-others-charge/ Mon, 31 Jan 2022 19:10:00 +0000 https://johnhesch.com/celtic-pull-out-of-deadline-day-desperation-as-others-charge/ It’s been a very quiet day on the transfer front for Celtic on deadline day but, for a change, I’m pretty relaxed about the whole thing. In fact, Ange Postecoglou basically explained that it was going to happen. He made himself “completely clear” at his last press conference, of course. Think back to last year. […]]]>

It’s been a very quiet day on the transfer front for Celtic on deadline day but, for a change, I’m pretty relaxed about the whole thing.

In fact, Ange Postecoglou basically explained that it was going to happen. He made himself “completely clear” at his last press conference, of course.

Think back to last year. The Celtic team was in chaos. Important players were on the verge of a summer exit, there was no long-term plan and the Bhoys were scrambling for the loan of Jonjoe Kenny on the last day of the window.

Photo by Ian MacNicol/Getty Images

This month of January? Postecoglou, Michael Nicholson and the Celtic board lined up early on to deliver four quality first-team signings who are all already playing for the manager and impressing the fans.

Celtic are putting in place long-term building blocks these days. We have gone from the six month loan which covers a hole but does not inspire the confidence of a plan.

Every signing Postecoglou has made has had the long term in mind. Even our loan signings Jota and Cameron Carter-Vickers have purchase options and if you listen to the Celtic boss, those clauses are not symbolic. He is heavily invested in both players should they choose to stay at Glasgow.

Listen, everyone loves a signing deadline. Am I a little disappointed that Celtic don’t look like they’re getting another late deal out of this? Of course, it’s natural as a fan.

“Ange has fun at Celtic” | Ernie Merrick on Postecoglou’s Hoops Revolution

Brid TV

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“Ange has fun at Celtic” | Ernie Merrick on Postecoglou’s Hoops Revolution

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All in all, the big picture is that Celtic have planned this transfer window so successfully that the manager has strengthened all the positions he wanted without having to sign up in desperation on deadline day. .

While others charge in and dive two-footed at players who may or may not be training, Celtic are well placed for the rest of the season, summer and beyond.

As always, this doesn’t guarantee trophies, but it does keep things moving in the right direction.

In other news, Surprising clause in Osaze Urhoghide Celtic exit.

Previous post Ismaila Soro looked very likely to leave Celtic; now it’s not worth the risk

Next article Aaron Ramsey for his rivals means absolutely nothing as Celtic pressure puts them in panic mode

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Home loan interest rate reduction, infra upgrades could make PM housing for all a reality https://johnhesch.com/home-loan-interest-rate-reduction-infra-upgrades-could-make-pm-housing-for-all-a-reality/ Fri, 21 Jan 2022 08:01:48 +0000 https://johnhesch.com/home-loan-interest-rate-reduction-infra-upgrades-could-make-pm-housing-for-all-a-reality/ Union Budget 2022-23: Among the direct benefits, the 2022 budget could bring potential relief to direct home buyers with an increased limit of interest deduction on home loans for tax refund from Rs 2 lakh to Rs 5 lakh Indian Union Budget 2022: Interest reduction on home loans could give PMAY a boost. Reuters With […]]]>

Union Budget 2022-23: Among the direct benefits, the 2022 budget could bring potential relief to direct home buyers with an increased limit of interest deduction on home loans for tax refund from Rs 2 lakh to Rs 5 lakh

Indian Union Budget 2022: Interest reduction on home loans could give PMAY a boost. Reuters

With the EU budget fast approaching, expectations from all sectors are on the rise. With economic advisers expecting India’s growth to be between 7% and 7.5%, the government will mainly focus on crafting a growth plan to lift the economy out of recession. COVID-19 crisis. The nation foresees a greater focus on the development of healthcare, infrastructure, affordable housing, MSMEs, startups and innovations.

The last two years have been marked by great pressure on all sectors; however, the residential finance and real estate sectors saw a larger drop with lower demand and lower investment. Although the sector is now accelerating with the top eight cities claiming near pre-pandemic era market share, individuals, investors and the entire industry are eagerly awaiting higher support from this budget. of the Union, to continue this growth.

Speculation is that the government will bolster the affordable and rental housing agenda with a strong roadmap to enable the sector to be ready for the future.

The litigation over mortgage tax reduction and increase in allowance to the Ministry of Housing and Urban Affairs by Rs 54,581 crore, was one of the biggest successes of the 2021 budget. expected proposals such as interest deduction on mortgage rates, infrastructure upgrades and increased capitalization of real estate, monetization of additional income to build higher assets, etc., will propel the Prime Minister Narendra Modi’s vision of housing for all under Pradhan Mantri Awas Yojana (PMAY) and strengthen the existing financing system.

Boost for buyers and investors

Among the direct benefits, the 2022 budget could bring potential relief to direct home buyers with an increased limit of home loan interest deduction for tax refund from Rs 2 lakh to Rs 5 lakh. In addition, personal tax relief, either with tax cuts or with a review of tax slaps, could support the sector with increased demands since the last increase in the deduction limit in 2014.

Buyers will furthermore look forward to responding to industry demands with ease of financing and GST rate reductions. If these expectations are met in the next budget, it will improve taxpayers’ disposable income and lead to consistent growth for the sector.

Maintain industry support

According to the Ministry of Housing and Urban Poverty Alleviation, affordable housing is defined by the size of the property, its price and the income of the buyer. In the next fiscal year, the government may also consider redefining the affordable housing criteria to extend the benefits of the additional deduction to a wider market.

Also, if the government extends the deadline for public housing projects with the added benefits of reduced stamp duty, reduced long-term capital gains tax for real estate, of an extension of the CLSS scheme under the PMAY for Middle Income Groups (MIGs) and unlocking more government-controlled land, this will allow industry to use the allocated funds and make the process more sustainable. more convenient purchase.

The author is CEO, Reliance Home Finance.

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Soaring interest rates reflect Fed policy that ‘overstayed its welcome’: Morning Brief https://johnhesch.com/soaring-interest-rates-reflect-fed-policy-that-overstayed-its-welcome-morning-brief/ Wed, 19 Jan 2022 11:03:47 +0000 https://johnhesch.com/soaring-interest-rates-reflect-fed-policy-that-overstayed-its-welcome-morning-brief/ This article first appeared in the Morning Brief. Get the Morning Brief delivered straight to your inbox Monday through Friday by 6:30 a.m. ET. Subscribe Wednesday, January 19, 2021 The Fed is catching up and investors are spooked Soaring inflation — and by extension interest rates and expectations of Federal Reserve rate hikes — have […]]]>

This article first appeared in the Morning Brief. Get the Morning Brief delivered straight to your inbox Monday through Friday by 6:30 a.m. ET. Subscribe

Wednesday, January 19, 2021

The Fed is catching up and investors are spooked

Soaring inflation — and by extension interest rates and expectations of Federal Reserve rate hikes — have made their presence felt on Wall Street in a big way.

After spending most of last year downplaying the threat of tighter monetary policy and rising yields, the 10-year note (TNX) climbed nearly 2%, the yield at 2-year inflation-sensitive bond hitting 1%, both at their highest level in nearly 2 years.

The surge in yields, which we’ve been warning Morning Brief readers about for months, has spooked investors and sent blue-chip and tech stocks teetering.

Tuesday’s selloff is “about interest rates,” UBS Global Wealth Management Americas head of equities David Lefkowitz told Yahoo Finance Live. The rise in the 10-year yield “has big implications for the internals of the market.”

The decisive end to market placidity regarding the upcoming rate hike cycle largely reflects a few drivers, but with a general theme. Namely, investors are increasingly concerned that a lagging Fed will get its hand pushed by inflation – and as a result will have to be much more aggressive on rate hikes than current conditions suggest, even if growth rates come back down to Earth.

“At the end of last year, the market had less than a 2 in 3 chance of a rally in March,” noted Marc Chandler of Bannockburn Global Forex.

“Now he has a fully reduced hike and about a 1 in 3 chance of a 50 [basis point] movement. At the end of last year, the market had nearly three fully discounted bulls for this year. Now the market is about 107 basis points completed,” Chandler said — meaning fed funds could quickly end up a full percentage point above current near-zero levels.

Since last month, investors have taken a noticeably more bearish stance, according to the data.

Much of the blame lies with the Fed for “far overstaying its welcome with [quantitative easing] and zero rates and a misinterpretation of inflation that they are now forced to catch up with,” said Peter Boockvar, chief investment officer of the Bleakley Advisory Group, which is a relentless critic of Fed monetary policy.

“The other sin, so to speak, was that by waiting this long to tighten, they let asset prices inflate further, creating a higher peak that they inevitably fall to when the tightening intensifies,” a- he added.

Banks are probably approaching the era of higher interest rates with aplomb. Yahoo Finance’s Brian Cheung wrote last week that the banking industry is executing a “pivot away from capital markets firm profitability in favor of higher net interest income in loan portfolios. “.

Yet, judging by the Nasdaq’s dramatic fall, high-growth and tech stocks have a lot more to worry about and are bearing the brunt of market jitters amid this CNBC’s Patti Domm noted that interest rates could maintain a “stangle” in this market segment.

the The Wall Street Journal rightly pointed out “Money-burning tech companies, biotech companies without any approved drugs, and startups that quickly listed via mergers with blank check companies” as the most vulnerable to the current slump.

“I think it makes perfect sense that some of these names need to calm down a bit, and then when you think about the trajectory of interest rates over this year, you need to look for companies that can generate realistic profitability. JPMorgan Chase Asset Management global market strategist Jack Manley told Yahoo Finance Live on Tuesday.

“For any tech company that’s burning through cash without any sort of viable product, that’s a tough sell this year,” he added. “I understand the volatility, I understand the sell-off, I think that’s a bit of a stretch but I certainly don’t think that’s a long-term issue for the sector.”

Indeed, Northern Trust Wealth Management has reminded its clients that tighter monetary policy does not mean tighter policy in absolute terms.

CIO Katie Nixon wrote last week that despite rising rate expectations“, it is important to stress that monetary policy will remain very accommodative and Treasury yields will remain negative. Based on our forecast of slower growth and more subdued inflation as we head Mid-2022, we also believe this particular rate hike cycle will be short and incomplete relative to the Fed’s dot chart as well as market expectations.”

Through Javier E.David, editor at Yahoo finance. Follow him on @Teflongeek

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loan interest rates: some lenders offer low fixed rate auto loans, personal loans: here’s why it’s a good deal now https://johnhesch.com/loan-interest-rates-some-lenders-offer-low-fixed-rate-auto-loans-personal-loans-heres-why-its-a-good-deal-now/ Wed, 29 Dec 2021 06:31:00 +0000 https://johnhesch.com/loan-interest-rates-some-lenders-offer-low-fixed-rate-auto-loans-personal-loans-heres-why-its-a-good-deal-now/ The total cost of a loan depends mainly on the interest rate applied to it. If the loan term is longer than one year, the change in interest rates over the life of the loan can have a significant impact on your total interest payment. This becomes critical especially when you take out a variable […]]]>


The total cost of a loan depends mainly on the interest rate applied to it. If the loan term is longer than one year, the change in interest rates over the life of the loan can have a significant impact on your total interest payment. This becomes critical especially when you take out a variable rate loan and the interest rate increases dramatically after a year. However, if you take out a fixed rate loan at a time like today when the interest rate is near the lowest levels seen over the past two decades, it will keep your interest outflows at a low. low and will offer you better savings than a variable rate loan.

Here’s how.

Signs of a turnaround in the rising interest rate cycle

The country’s largest public sector bank, the State Bank of India (SBI), announced on December 17, 2021 that it had raised its key rate by 10 basis points (bps), marking the beginning of the end of the regime. low interest rates. In addition to being a benchmark rate for borrowers, the base rate also serves as an indicator of the direction of the overall interest rate in the economy.

A hike in the base rate indicates that the downtrend in interest rates is finally reversing and that in the future we may see a few more interest rate hikes. Crude oil (WTI) prices after falling to $ 65 in early December have now risen nearly $ 73 on December 23, indicating a resumption in global demand. If the impact of the Omicron variant of the coronavirus on the global economy does not extend over a long period of time and remains manageable, then with a double-digit increase in the WPI (Wholesale Price Index) in India, which could have a later ripple effect on the CPI (consumer price index), the probability that the RBI will hike the rate in the near future cannot be excluded.

Auto loan and personal loan at a fixed rate

Much of the personal loans available at a fixed rate comes in the form of auto loans and personal loans. Although not all lenders offer these fixed rate loans, quite a few do. “Public sector banks usually offer personal loans with floating interest rates, while most private sector banks and NBFCs offer personal loans with fixed interest rates,” says Sahil Arora, senior manager of Paisabazaar. .com.

The story is similar when it comes to auto loans. “While most PSU banks offer auto loans at floating interest rates, the State Bank of India offers auto loans at fixed interest rates. Private sector banks and NBFCs typically offer auto loans at fixed interest rates, ”says Arora.

* Additional interest rate concession of 0.20% on the purchase of an electric vehicle (Green Car Credit)
** 0.25% interest rate concession for existing home loan borrowers and company payroll account holders. 0.05% reduction on the interest rate for women and armed forces personnel subject to a minimum ceiling of RLLR.
Fixed rate vs variable rate taken from respective bank websites
Rates and charges as of December 16, 2021, Source: Paisabazaar.Com


How Fixed Rate Loans Can Save Interest

Over the long term of 5-7 years, which is usually the case with personal loans and auto loans, if the interest rate starts to rise, a fixed rate loan will help you save an amount of. important interest.

If you compare a car loan of Rs 10 lakh at a fixed interest rate of 7.5% and a floating interest rate with a starting rate of 7.5% but with a 0.5% increase in interest, within 5 years your interest will only be Rs. 2.02 lakh in the fixed rate option while it will be Rs 2.20 lakh in the variable rate option. If the interest rate hike is more than 0.5% in the first few years, the interest expense could be much higher.

The decision to opt for a fixed rate loan will be more advantageous when you are selective in the choice of the lender and the interest rate. “As fixed rate loans carry a higher interest rate risk for lenders, they usually charge higher interest rates on fixed rate loans than on variable rate loans to cover the higher risk,” explains Arora.

However, when you compare the interest rates between lenders, you can easily find many lenders offering fixed rate loan at competitive rates. For example, Canara Bank’s lowest interest rate on a variable rate auto loan is 7.30% while you can get SBI’s fixed rate loan at 7.25%. Likewise, Federal Bank’s minimum floating rate on its auto loan is 8.5% while you can get fixed rate loan from HDFC Bank at 7.95%.

Likewise, you can get a fixed rate personal loan from SBI at 9.6% if you have a salary package account with the bank. You will have to pay a minimum interest rate of 10.5% if you opt for a variable rate personal loan from Bank of Baroda according to its website. So if you do your research, you can easily find a lower fixed rate auto loan and personal loan option that is right for you.

Use a personal loan instead of a higher rate used car loan

If you are considering taking out a used car loan, you should consider all of your options critically. “Lenders charge higher interest rates on used cars because the credit risk associated with used car loans is higher than with new cars. Interest rates for used car loans typically range from 8.75% per year to 16% per year depending on the condition, age and segment of the car, ”says Arora.

Instead of opting for a user car loan, we can think of using a personal loan to finance the purchase of the vehicle. “Some banks and NBFCs actually charge lower interest rates on their personal loans than used car loans. Therefore, those who are considering purchasing used cars through loans may also consider take advantage of a personal loan, ”says Arora.

In addition, a personal loan can allow you to obtain a higher amount of financing than a used car loan. “Since lenders typically finance up to 70% of the value of a used car through a car loan, using a personal loan to finance a used car can allow them to benefit from a larger loan amount for a longer tenure, ”said Arora.


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