interest rates – Blog Campcee http://blogcampcee.com/ Tue, 29 Mar 2022 08:48:08 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://blogcampcee.com/wp-content/uploads/2021/05/cropped-icon-32x32.png interest rates – Blog Campcee http://blogcampcee.com/ 32 32 Small Business Loan Options in Wyoming https://blogcampcee.com/small-business-loan-options-in-wyoming/ Thu, 17 Mar 2022 01:14:19 +0000 https://blogcampcee.com/small-business-loan-options-in-wyoming/

Entrepreneurs in the state of Wyoming may not know that they have powerful partners and business resources in the state of Cowboy.

Whether you’re looking for working capital to help grow your business or need someone to brainstorm, there are plenty of resources to help.

How a Small Business Loan Can Help Your Wyoming Business

Let’s start by looking at small business loans, which can be used to cover any expenses you have for your business.

Want to hire staff? Invest in advertising? Buy real estate or equipment? A small business loan can provide you with the cash you need to cover these expenses.

You can also use a loan to bridge a gap if your business is seasonal. Really, there is little that a small business loan is not it blanket!

Types of small business loans to choose from

If you’re new to finding small business financing, you might be surprised at all the choices available to you. There is a loan option and a lender for every business and every type of credit profile.

Term loans

Whether you want a short, medium or long term loan, there are banks, credit unions and online lenders to help you with your Wyoming business. Loans from banks tend to have the strictest criteria to qualify, and you’ll need good to excellent credit to be approved. Online lenders may have more flexible settings.

SBA Loans

The United States Small Business Administration is a division of the federal government that supports several small business loan programs. Note that the SBA is not a lender; there are banks and online lenders that are authorized to lend through the 7(a), 504, and microloan programs offered by the SBA. To learn more, visit SBA.gov.

Equipment loans

Some loans have specific purposes, and equipment loans are one example. They are used to buy equipment like heavy machinery, company vehicles, computers, etc. The equipment you buy serves as collateral for the loan, which can help you get lower interest rates.

Commercial real estate loans

Another specific loan is that for the purchase of commercial real estate. It’s like a mortgage for your home, but it’s a business loan. The property serves as collateral, and generally these loans have a maximum term of 25 years.

Small Business Loan Options for Wyoming

Now that you know more about a few of your small business loan options, let’s take a look at the lenders that offer them in Wyoming.

Term loans

SBA Loans

Equipment loans

Commercial real estate loans

What it takes to get approved for a small business loan

So what do you need to qualify for a loan in Wyoming? Eligibility varies from lender to lender. To qualify for the lowest interest rate loans (SBA and bank loans), you will need good to excellent credit and have been in business for at least two years.

If you’re running a startup and don’t qualify for these loans, don’t worry. There are online lenders that look at other criteria like your annual or monthly sales to determine eligibility.

Banks may require you to visit a branch to apply and may ask for detailed financial statements and tax returns. Online lenders may only ask for a few details about your business before making a decision.

How to Choose the Right Loan for Your Wyoming Small Business

The right loan for some borrowers may not be the right loan for your business. Figure out how much you need to borrow and what you’re entitled to, then start shopping. Review the terms of the loan before signing anything. Often you can see what rate you qualify for before submitting a claim.

Small Business Grant Options for Wyoming

Another financial aid option in Wyoming comes from small business grants. This form of business financing does not have to be repaid like loans do. Nonprofits, local governments, and businesses all offer small business grants. Here are a few you might consider applying for:

Additional Resources for Wyoming Small Businesses

Wyoming small business owners also have a variety of small business resources that can provide mentorship, advice on obtaining government contracts, workshops, and networking:

Whether you are located in Casper, Laramie, Cheyenne, Jackson, or any other city or town in Wyoming, know that you are not alone as an entrepreneur and have many resources to support your business on its journey to growth and prosperity!

This article was originally written on March 16, 2022.

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Moray Firth Credit Union promotional video shows potential customers why the lender beats the banks https://blogcampcee.com/moray-firth-credit-union-promotional-video-shows-potential-customers-why-the-lender-beats-the-banks/ Sat, 12 Mar 2022 09:00:00 +0000 https://blogcampcee.com/moray-firth-credit-union-promotional-video-shows-potential-customers-why-the-lender-beats-the-banks/

Moray Firth Credit Union founder Lorna Creswell hopes more people will get the message.

A credit union that was founded in Forres and is growing through Moray has launched a promotional video.

The Moray Firth Credit Union (MFCU) – which now has collection points in Elgin and Buckie – advertises the financial services it offers, including loans at lower interest rates than the big banks.

Jackie Nicol, head of finance and promotion, confirmed the advert was funded by a donation from the Fairer Moray Forum, which also provided sponsorship for a Forres Area Soccer 7s team.

She said: “We try to let people know who we are and how we can help people. The video shows people that we are an alternative option when borrowing money. In addition to the banks, we are much cheaper than some of the loans offered on TV.

“We also charge our interest on the declining balance, have flexible payment options and encourage members to save a small amount while they borrow. They have a nice surprise at the end of their loan and they have built up savings!

Credit unions take a people-centered approach to economic development that redirects wealth into the local economy and places control and benefits in the hands of local people.

“We also help people on benefits to borrow,” added Jackie. “We have a strict lending policy and work closely with credit reference agency Equifax to ensure we lend responsibly. Credit unions have more flexible repayment options that encourage saving as the loan is paid off, creating a nest egg for the future. And there are no prepayment charges.

Produced by Ian Forsyth of Inverness-based DP Digital Media in January, the MFCU advert runs on social media, the MFCU website and at the social enterprise’s offices.

Lorna Creswell, founding member of the MFCU, added: “The MFCU has money to lend and it would be nice to see it circulating locally! Our assets come from interest earned on borrowings. If we achieve a surplus at the end of the year, our members could receive a dividend based on their savings.

See the video on https://www.youtube.com/watch?v=OxGohn0tr8I


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ASEAN Think Tank Sees 6.5% PH Growth in 2022, 2023 https://blogcampcee.com/asean-think-tank-sees-6-5-ph-growth-in-2022-2023/ Fri, 11 Mar 2022 08:58:00 +0000 https://blogcampcee.com/asean-think-tank-sees-6-5-ph-growth-in-2022-2023/
ASEAN+3 AMRO Macroeconomic Research Bureau

Logo of the Macroeconomic Research Office of Asean+3 (Amro) | Photo from file INQUIRER.net

MANILA, Philippines — Regional watchdog Asean+3 Macroeconomic Research Office (Amro) raised its growth forecast for the Philippines to 6.5% from 6.2% previously, but urged the government to maintain support for the Philippines. sectors marked by prolonged COVID-19. pandemic.

“Economic recovery in the Philippines is firmly on track – despite recurrent waves of COVID-19 infections in 2021 – and is expected to accelerate following further easing of mobility restrictions and continued policy support,” Amro said. in a statement Friday (March 11). Amro’s latest assessment was based on its annual consultation with Philippine economic leaders held online from February 18 to March 8.

Amro’s Chief Economist, Siu Fung Yiu, projected the Philippines’ gross domestic product (GDP) growth to reach 6.5% in 2022 and 2023. Amro’s growth forecast for this year was lower than the government’s 7-9% target. Its estimate for next year, meanwhile, was within the Philippines’ 6-7% growth target.

“Continued fiscal support and a high vaccination rate will help keep the economy relatively open and sustain the momentum of recovery,” Yiu said.

“For 2022, government spending will continue to be the main driver of growth, with the private sector recovery gaining momentum as the economy reopens, supported by better economic prospects, improving confidence and a favorable external demand,” Amro said.

Amro nonetheless urged the Philippines to put in place a fiscal consolidation plan that “should improve fiscal sustainability without undermining economic recovery.”

The fiscal consolidation strategy to be presented and delivered by the Duterte administration’s economic team to the next Philippine President aimed to reduce the record budget deficit and pay down the debt that has accumulated amid the pandemic.

The fiscal consolidation plan may include new or higher taxes, spending cuts in non-priority sectors, as well as economic growth engines to increase revenue.

“A gradual reduction in the fiscal deficit is deemed appropriate as the recovery gains further momentum in the near term,” Amro said.

“However, the pace of fiscal consolidation should be accelerated once private sector growth becomes self-sustaining. The authorities should also continue to improve the efficiency of public spending programs, while improving revenue collection,” did he declare.

“The overall fiscal policy stance is assessed as broadly neutral in 2022 under the current national budget. This policy stance is appropriate as the private sector recovery is expected to become more self-sustaining going forward,” he added. .

But Amro noted that the recovery in the Philippines remained fragile – “while the labor market has rebounded strongly, unemployment remains high and job quality has deteriorated,” he said.

“Some lasting damage caused by the pandemic has become clearer, the most damaging of which relates to human capital, making it urgent to take action to build resilient, sustainable and inclusive long-term growth,” Amro said.

Soaring global oil prices due to the war between Ukraine and Russia will also pose upside inflation risks this year, Amro said, although he expected the rate of increase in commodity prices to rise. basis would decline to 3.7% and 3.3% next year, from 3.9% last year. year.

In addition, Amro said that “a potential resurgence of COVID-19 infections remains a key risk to the recovery and that the depreciation of corporate balance sheets continues to pose a risk to the soundness of the banking sector in the near term”, even though “the significance of these two risks may have diminished due to a higher vaccination rate and the resumption of economic activity.

As global interest rates normalize and financial conditions tighten, Amro said “the Philippine economy is well positioned to weather the negative impact, but the peso exchange rate may come under some pressure. “.

“The central bank of the Philippines should continue its accommodative monetary policy in 2022 to support the recovery and consider reducing its policy stance as the recovery gains momentum and the output gap narrows,” Amro said.

“Key central bank relief measures are still in place to ensure continued support for the recovery of businesses, households and the economy as a whole,” Amro added, referring to the Bangko Sentral ng Pilipinas (BSP ).

“The government must leverage public and private efforts to mitigate the scarring effects of the pandemic and address structural challenges for more resilient and sustainable long-term growth,” Amro said.

“The country’s legislative efforts, including passing amendments to the Retail Trade Liberalization Act, the Civil Service Act and the Foreign Investment Act, are welcome,” Amro said.

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Loans as low as $1,000 https://blogcampcee.com/loans-as-low-as-1000/ Thu, 10 Mar 2022 04:00:34 +0000 https://blogcampcee.com/loans-as-low-as-1000/

Select’s editorial team works independently to review financial products and write articles that we think our readers will find useful. We earn commission from affiliate partners on many offers, but not all offers on Select are from affiliate partners.

Even if you’re married to your favorite credit card, you may find that there are times when it just doesn’t make sense to use it. For one thing, your credit limit may not be enough to cover a very large expense like a home renovation or a wedding. Also, credit cards usually carry high interest rates. These are areas where personal loans have the upper hand.

Personal loans have become a popular option for covering a variety of major expenses, such as home renovations, weddings, unexpected expenses, funerals and more. And in some cases, it may actually be more affordable to use a personal loan than to use a credit card, since personal loans are known for their relatively low interest rates.

There are many personal lenders out there, so it can sometimes be difficult to determine what each loan offers, but there are a few highlights to look out for. Avoiding prepayment charges and origination fees can help you save money on the cost of borrowing so that it can work in your favor to seek out a lender who does not bear these charges, such as loans PNC Bank staff.

Of course, however, you should always do additional research before applying for any financial product and ensure that you are comfortable with the terms of that product before signing on the dotted line.

To help, Select has reviewed PNC Bank’s APR, benefits, fees, loan amounts, and terms. (Learn more about our methodology below.) Read on to find out if PNC Bank is the right lender for you.

PNC Bank Personal Loan Review

PNC Bank Personal Loans

  • Annual Percentage Rate (APR)

    5.99% to 28.74% APR (0.25% APR discount when you sign up for autopay)

  • Purpose of the loan

    Debt consolidation, home improvement, wedding, moving and moving or vacation

  • Loan amounts

  • terms

  • Credit needed

  • Assembly costs

  • Prepayment penalty

  • Late charge

    10% of payment or $40, whichever is greater

Benefits

  • No setup fees, no prepayment fees
  • Fixed rate APR
  • Flexible repayment terms
  • Loan amounts start at $1,000
  • No collateral needed

The inconvenients

  • Late payment fee invoice
  • Not the fastest funding (may take up to 10 business days)
  • Rates and conditions may vary depending on your postal code

APR

APRs typically range from 5.99% to 28.74% for PNC Bank personal loans, but a more specific rate range (as well as other terms) will depend on your location and, of course, factors such as credit rating and amount of money needed. Prospective borrowers are encouraged to verify the rate range for their location by entering their zip code on the PNC Bank personal loan website.

Like many other personal lenders, PNC Bank offers a small discount on the interest rate for making payments automatically through a PNC Bank checking account (borrowers can receive a 0.25% discount for signing up so that their payments are automatically applied to your balance).

Personal loans from this lender also carry fixed interest rates that will not fluctuate over the life of your loan. Also keep in mind that generally the higher your credit score, the lower your interest rate is likely to be. PNC Bank does not disclose the exact minimum credit score required to qualify for its personal loan products.

Benefits

There is some flexibility regarding your loan repayment schedule; borrowers can choose loan terms of up to 60 months.

And, as we mentioned above, if you already have a checking account at PNC Bank and use it to make your monthly payments automatically, you can qualify for an interest rate reduction of 0 .25%.

Costs

PNC Bank does not charge an application fee or origination fee, and there are no prepayment penalties for making additional payments to pay off your loan early.

However, there are late fees. Borrowers will be charged 10% of the payment or $40, whichever is greater, if a late payment is made.

And as with any other loan or credit product, it’s important to keep in mind that failure to pay in full on time may result in the lender notifying a credit reporting agency, which may affect your credit score.

Amount of the loan

Loan amounts range from $1,000 to $35,000, making this lender an attractive option for those looking to borrow small amounts of money (personal lenders can offer up to $100,000). Keep in mind, however, that not all applicants will qualify for the maximum loan amount. Qualification can usually depend on factors such as your creditworthiness.

And while PNC Bank personal loans can be used for a variety of expenses — including debt consolidation, home renovation, wedding, moving, or even vacation — there are some things you can’t use for. this loan. Prohibited uses include post-secondary education expenses, student loan debt refinancing, or any unlawful purpose.

Mandate’s duration

Candidates have a range of term lengths of up to 60 months.

At the end of the line

PNC Bank personal loans are a solid option for those who want to avoid origination fees and prepayment penalties. Although you don’t need to be an existing customer to apply for the loan, the biggest benefit is for those who set up automatic monthly payments through an existing PNC Bank checking account – you will receive an interest rate by 0.25%.

Since personal loan products may vary by location, your actual interest rate range and other terms may depend on your zip code. So you will have to check this before applying for this loan.

If you’re not comfortable with the terms you receive and are looking for slightly lower interest rates, check out LightStream Personal Loans, which offers APRs as low as 2.99% and an APR deduction of 0 .25% to automatically pay your bill each month.

Our methodology

To determine which personal loans are best, Select analyzed dozens of US personal loans offered by online and brick-and-mortar banks, including major credit unions, that have no origination or enrollment fees, from APRs to fixed rate and flexible loan amounts. and terms tailored to a range of financing needs.

When selecting and ranking the best personal loans, we focused on the following characteristics:

  • No creation or registration fees: None of the lenders on our top list charge borrowers an upfront fee for processing your loan.
  • Fixed APR: Variable rates can go up and down over the life of your loan. With a fixed-rate APR, you fix an interest rate for the life of the loan, which means your monthly payment won’t vary, making it easier to plan your budget.
  • Flexible minimum and maximum loan amounts/terms: Each lender offers a variety of financing options that you can customize based on your monthly budget and how long you need to pay off your loan.
  • No prepayment penalties: The lenders on our list do not charge borrowers for prepaying loans.
  • Simplified application process: We looked at whether lenders offered same-day approval decisions and a fast online application process.
  • Customer service: Every loan on our list offers customer service available by phone, email or secure online messaging. We have also opted for lenders that have a resource center or an online advice center to help you learn about the personal loan process and your finances.
  • Disbursement of funds: The loans on our list provide funds quickly by electronic transfer to your checking account or in the form of a paper check. Some lenders (which we have noted) offer the option of paying your creditors directly.
  • Automatic payment discounts: We’ve noted lenders who reward you for signing up for autopay by reducing your APR by 0.25% to 0.5%.
  • Creditor Payment Limits and Loan Sizes: The lenders above offer loans of varying sizes, ranging from $500 to $100,000. Each lender advertises their respective payment limits and loan amounts, and completing a pre-approval process can give you an idea of ​​what your interest rate and monthly payment would be for such an amount.

After reviewing the features above, we’ve sorted our recommendations based on overall financing needs, debt consolidation and refinance, small loans, and overnight financing.

Note that advertised rates and fee structures for personal loans are subject to fluctuation in accordance with the Fed rate. However, once you have accepted your loan agreement, a fixed rate APR will guarantee the interest rate and the monthly payment will remain constant for the duration of the loan. Your APR, monthly payment, and loan amount depend on your credit history and creditworthiness. To take out a loan, lenders will do a credit check and ask for a full application, which may require proof of income, identity verification, proof of address and more.

Editorial note: Any opinions, analyses, criticisms or recommendations expressed in this article are those of Select’s editorial staff only and have not been reviewed, endorsed or otherwise endorsed by any third party.

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How Crypto Can Help Pay Off Credit Card Debt – Hometown Station | KHTS FM 98.1 & AM 1220 — Santa Clarita Radio https://blogcampcee.com/how-crypto-can-help-pay-off-credit-card-debt-hometown-station-khts-fm-98-1-am-1220-santa-clarita-radio/ Fri, 04 Mar 2022 21:24:39 +0000 https://blogcampcee.com/how-crypto-can-help-pay-off-credit-card-debt-hometown-station-khts-fm-98-1-am-1220-santa-clarita-radio/

Just a few years ago, cryptocurrency mining was considered just a hobby for computer geeks. But today, the crypto phenomenon has exploded into a modern gold rush attracting the interest of millions.

And, although digital currencies are still in their infancy, they are finding their way into many aspects of everyone’s life and finances. But is the potential of crypto big enough to solve one of America’s biggest financial problems? It certainly seems so – find out how crypto can help you pay off your credit card debt below.

Crypto and Your Credit Card Debt: An Overview

With an average outstanding balance of $5,525, credit card holders in the United States often see their household finances rocked by their credit card debt. At the same time, your credit card balance shouldn’t define your financial stability.

From debt consolidation to healthier spending habits, there are plenty of options for paying off credit card debt or reducing the financial burden that comes with it.

And, today, thanks to emerging technologies such as DeFi and digital currencies, there are new alternatives to consider.

Decentralized and based on blockchain technologies, cryptocurrencies allow fast and secure financial transactions. While initially the crypto world only seemed accessible to a few experts, today’s trading platforms are bringing the benefits of digital currencies within everyone’s reach.

In the case of Santa Clarita, the proof of the potential of cryptos is just around the corner. What in 2019 was the US city with the second highest debt ratio in the country, in 2021 is the one with the highest debt repayment. And it’s thanks to crypto!

Crypto-backed loans for debt consolidation

As more traditional investors take an interest in crypto, digital currencies are becoming easier to trade, buy, and use — and they’re transforming the entire financial industry. In turn, more and more institutions and retailers have started accepting this digital asset as a form of payment or collateral, in a way not unlike using cash.

In the case of credit card debt, owning cryptocurrencies such as Bitcoin or Ether can help you secure a loan, which you can use to consolidate your debt or pay off your outstanding balance.

In crypto loans, your assets are treated as collateral for the borrowed money, which means you could end up losing your principal if you are unable to keep up with repayments.

However, crypto loans have significant advantages, including:

  • High borrowing limits, up to 50%-90% of the value of your digital asset
  • Availability of funds within hours
  • Low interest rates
  • No or few credit checks
  • Wide range of repayment terms

Credit cards with cryptocurrency cashback features

Choosing your credit card wisely is always important in managing the financial burden of credit card debt. But this is especially the case if you plan to take advantage of the debt repayment options offered by crypto – now or in the future.

In this case, choosing a credit card with crypto rewards features is a suitable option for earning while spending. If you choose cards that offer crypto cashback features, such as the SoFi credit card, you will also be able to accumulate points that can be redeemed for fractions of Bitcoin or Ether.

In turn, with the right investment strategy, these can help you grow your portfolio, create additional revenue streams, and start paying off your credit card debt.

Using Your Crypto Wallet to Pay Off Credit Card Debt

In 2018, almost 20% of bitcoin investors surveyed purchased their digital assets through their credit cards, thus increasing their debt. At the same time, the majority of them planned to pay off their balances in the future – thanks to the capital gains realized on the sale of their assets.

And, if you had invested back then, you might have found that the value of your assets had increased more than sevenfold. In this case, you might consider using a portion of your capital gains to pay off your credit card debt.

Conclusion

Due to the high level of risk and volatility of digital assets, investing in cryptos is not for everyone.

However, if you have been interested in the unexplored potential of digital currencies for some time and have taken all the necessary considerations, using crypto to pay off your credit card debt may be a valid alternative. But make sure you always partner with an expert financial advisor and find a reputable credit card provider.

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Today’s Mortgage Rates Are Climbing | March 4, 2022 https://blogcampcee.com/todays-mortgage-rates-are-climbing-march-4-2022/ Fri, 04 Mar 2022 13:30:12 +0000 https://blogcampcee.com/todays-mortgage-rates-are-climbing-march-4-2022/

Interest rates for purchase and refinance loans are higher today, with some categories of loans seeing significant increases.

For buyers, the average rate for a 30-year fixed rate mortgage is 4.531%. That’s an increase of 0.149 percentage points from a day ago. Meanwhile, the rate for a 30-year refi is averaging 4.618%, up 0.155 percentage points.

The biggest change is in the average 30-year jumbo purchase loan rate, which jumped 0.446 percentage points to 4.299%.

  • The last rate on a 30-year fixed rate mortgage is 4.531%. ⇑
  • The final rate on a 15-year fixed rate mortgage is 3.494%. ⇑
  • The latest rate on a 5/1 ARM is 3.171%. ⇑
  • The latest rate on a 7/1 ARM is 3.445%. ⇑
  • The latest rate on a 10/1 ARM is 3.538%. ⇑

Money‘s daily mortgage rates reflect what a borrower with a 20% down payment and a credit score of 700 — roughly the national average score — could pay if he or she applied for a home loan right now. Each day’s rates are based on the average rate that 8,000 lenders offered applicants the previous business day. Freddie Mac’s weekly rates will generally be lower, as they measure the rates offered to borrowers with higher credit scores.

Are you looking for a loan? Check out Money’s lists of top mortgage lenders and top refinance lenders.

Today’s 30-Year Fixed Rate Mortgage Rates

  • The 30-year rate is 4.531%.
  • It’s a day infold by 0.149 percentage points.
  • It’s a month to augment by 0.395 percentage points.

The main advantage of a 30-year fixed rate mortgage is its long repayment term. By dividing the loan balance over several months, you pay less each time. The fixed rate also means that these payments will never change. The downside is that the interest rate is higher than on a short-term loan, so you’ll end up paying more over time.

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Average mortgage rates

Data based on US mortgages closed March 3, 2022

Type of loan 3rd of March Last week Change
15-year fixed conventional 3.49% 3.53% 0.04%
30-year fixed conventional 4.53% 4.49% 0.04%
ARM rate 7/1 3.45% 3.52% 0.07%
ARM rate 10/1 3.54% 3.64% 0.1%

Your actual rate may vary

15 years today fixed rate mortgage rates

  • The 15-year rate is 3.494%.
  • It’s a day infold by 0.132 percentage points.
  • It’s a month infold by 0.369 percentage points.

Some borrowers prefer 15-year fixed rate loans because interest rates tend to be low and the short payback period means you’ll pay less interest overall. However, the short term also means the monthly payments will be higher and may not be as manageable as a 30 year loan.

The latest rates of adjustable rate mortgages

  • The latest rate on a 5/1 ARM is 3.171%. ⇑
  • The latest rate on a 7/1 ARM is 3.445%. ⇑
  • The latest rate on a 10/1 ARM is 3.538%. ⇑

An adjustable rate mortgage can be an attractive option for borrowers who don’t plan to stay in a home for the long term. The interest rate will first be fixed and then begin to adjust periodically. For example, a 5/1 ARM will have a stable rate for five years before starting to adjust each year. Keep in mind, however, that once the rate begins to adjust, it could rise significantly.

The Latest VA, FHA, and Jumbo Loan Rates

The average rates for FHA, VA, and jumbo loans are:

  • The rate on a 30-year FHA mortgage is 4.282%. ⇑
  • The rate for a 30-year VA mortgage is 4.734%. ⇑
  • The rate for a 30-year jumbo mortgage is 4.299%. ⇑

The latest mortgage refinance rates

The average refinance rates for 30-year loans, 15-year loans and ARMs are:

  • The refinance rate on a 30-year fixed rate refinance is 4.618%. ⇑
  • The refinance rate on a 15-year fixed rate refinance is 3.599%. ⇑
  • The rollover rate on a 5/1 ARM is 3.22%. ⇑
  • The refinance rate on a 7/1 ARM is 3.495%. ⇑
  • The refinance rate on a 10/1 ARM is 3.602%. ⇑
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Average Mortgage Refinance Rates

Data based on US mortgages closed March 3, 2022

Type of loan 3rd of March Last week Change
15-year fixed conventional 3.6% 3.62% 0.02%
30-year fixed conventional 4.62% 4.57% 0.05%
ARM rate 7/1 3.5% 3.59% 0.09%
ARM rate 10/1 3.6% 3.72% 0.12%

Your actual rate may vary

Where are mortgage rates going this year?

Mortgage rates have fallen through 2020. Millions of homeowners have responded to low mortgage rates by refinancing existing loans and taking out new ones. Many people bought homes they might not have been able to afford if rates were higher. In January 2021, rates briefly dipped to the lowest levels on record, but rose slightly for the rest of the year.

Looking ahead, experts believe that interest rates will rise further in 2022, but also modestly. Factors that could affect rates include continued economic improvement and further labor market gains. The Federal Reserve has also started to scale back its purchases of mortgage-backed securities and said it plans to raise the federal funds rate three times in 2022 to combat rising inflation from March.

While mortgage rates are likely to rise, experts say the increase won’t happen overnight and it won’t be a dramatic jump. Rates are expected to remain near historic lows throughout the first half of the year, rising slightly later in the year. Even with rising rates, it will still be a good time to finance a new home or refinance a mortgage.

Factors that influence mortgage rates include:

  • The Federal Reserve. The Fed acted quickly when the pandemic hit the United States in March 2020. The Fed announced its intention to keep money flowing in the economy by lowering the Federal Fund short-term interest rate between 0% and 0.25%, which is also low as you go. The central bank also pledged to buy mortgage-backed securities and treasury bills, supporting the housing finance market, but began to scale back those purchases in November.
  • The 10-year Treasury bond. Mortgage rates keep pace with government 10-year Treasury bond yields. Yields first fell below 1% in March 2020 and have since risen. On average, there is typically a 1.8 point “spread” between Treasury yields and benchmark mortgage rates.
  • The wider economy. Unemployment rates and changes in gross domestic product are important indicators of the overall health of the economy. When employment and GDP growth are weak, it means the economy is weak, which can lower interest rates. Thanks to the pandemic, unemployment levels reached historic highs early last year and have yet to recover. GDP has also taken a hit, and although it has rebounded somewhat, there is still plenty of room for improvement.

Tips for getting the lowest possible mortgage rate

There is no universal mortgage rate that all borrowers receive. Qualifying for the lowest mortgage rates takes some work and will depend on both personal financial factors and market conditions.

Check your credit score and your credit report. Mistakes or other red flags can lower your credit score. Borrowers with the highest credit scores are the ones who will get the best rates, so it’s essential to check your credit report before you begin the home hunting process. Taking steps to correct mistakes will help increase your score. If you have high credit card balances, paying them off can also give you a quick boost.

Save money for a large down payment. This will lower your loan-to-value ratio, which is the share of the house price that the lender has to finance. A lower LTV usually translates to a lower mortgage rate. Lenders also like to see money that has been saved in an account for at least 60 days. It tells the lender that you have the money to finance the home purchase.

Shop around for the best rate. Don’t settle for the first interest rate a lender offers you. Check with at least three different lenders to see who offers the lowest interest rate. Also consider different types of lenders, such as credit unions and online lenders in addition to traditional banks.

Also, take the time to learn about the different types of loans. Although the 30-year fixed rate mortgage is the most common type of mortgage, consider a shorter-term loan such as a 15-year mortgage or an adjustable rate mortgage. These types of loans often come with a lower rate than a conventional 30-year mortgage. Compare the costs of all to see which best suits your needs and financial situation. Government loans — such as those backed by the Federal Housing Authority, Department of Veterans Affairs, and Department of Agriculture — may be more affordable options for those who qualify.

Finally, lock in your rate. Locking in your rate once you’ve found the right rate, the right loan product, and the right lender will help ensure that your mortgage rate doesn’t increase until the loan is closed.

Our mortgage rate methodology

Money’s Daily Mortgage Rates show the average rate offered by more than 8,000 lenders across the United States for which the most recent rates are available. Today we are posting rates for Thursday, March 3, 2022. Our rates reflect what a typical borrower with a credit score of 700 might expect to pay for a home loan right now. These rates were offered to people depositing 20% ​​deposit and include discount points.

More money :

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Is it good for you ? https://blogcampcee.com/is-it-good-for-you/ Wed, 02 Mar 2022 23:00:35 +0000 https://blogcampcee.com/is-it-good-for-you/

Select’s editorial team works independently to review financial products and write articles that we think our readers will find useful. We earn commission from affiliate partners on many offers, but not all offers on Select are from affiliate partners.

Personal loans have become a popular option for covering a variety of major expenses, such as home renovations, weddings, unexpected expenses, funerals and more. In some cases, it may actually be more affordable to use a personal loan than to use a credit card, as personal loans generally carry lower interest rates.

It’s even better when a personal loan, like American Express® Personal Loans, doesn’t charge an application fee or origination fee. American Express is also one of the few big names in banking to offer personal loan products to everyday customers.

Of course, however, you should always do your research before applying for any financial product and ensure that you are comfortable with the terms of that product before signing on the dotted line.

To help you out, Select has looked at Amex’s APR, benefits, fees, loan amounts and terms. (Learn more about our methodology below.) Read on to find out if American Express is the right lender for you.

American Express Personal Loan Review

American Express® Personal Loans

  • Annual Percentage Rate (APR)

  • Purpose of the loan

    Debt consolidation, home improvement, moving expenses, wedding or vacation

  • Loan amounts

  • terms

  • Credit needed

  • Assembly costs

  • Prepayment penalty

  • Late charge

Benefits

  • No setup fees, no prepayment fees
  • Same day decision in seconds (in most cases)
  • Ability to pay creditors directly
  • Funds can be disbursed by direct deposit

The inconvenients

  • $39 late fee
  • No automatic payment discount
  • No co-signers or joint applications
  • Only American Express cardholders can apply
  • The payment due date cannot be changed
  • Funds cannot be used to pay American Express credit cards

APR

APRs range from 6.91% to 19.97% for American Express personal loans. Unlike most other personal lenders, American Express does not offer interest rate discounts for making payments using autopay (typically a 0.25% discount is applied for signing up so that your payments are automatically applied to your balance).

The APR range for these personal loans is a bit higher than some other lenders, but Amex personal loans carry fixed interest rates that won’t fluctuate for the life of your loan. Also keep in mind that generally the higher your credit score, the lower your interest rate is likely to be. American Express does not disclose the exact minimum credit score required to qualify for its personal loan products.

Benefits

Although you must already be an American Express card member to apply for a personal loan, you are not eligible for Membership Rewards® points or insurance benefits (or other benefits) that are generally available with Amex cards.

There is, however, some flexibility when it comes to how you pay your monthly installments. You can make payments online, via Autopay or by sending a check to the appropriate address. Again, keep in mind that while Autopay is an option to pay off your loan, there is no discount for using the service.

Costs

American Express doesn’t charge an application fee or origination fee, and there are no prepayment penalties for making extra payments to pay off your loan early.

However, a $39 late fee will be charged to your account if a payment is made after the due date shown on your account or invoice, or if you do not have sufficient funds in your bank account to make the payment. full month payment.

As with any other loan or credit product, failure to make full payment on time may result in the lender notifying a credit reporting agency, which may affect your credit score.

Amount of the loan

Loan amounts range from $3,500 to $40,000, making this lender an attractive option for those in need of medium-sized loans (personal lenders can offer up to $100,000). Keep in mind, however, that not all applicants will qualify for the maximum loan amount. Qualification can usually depend on factors such as your creditworthiness.

Most application decisions can be made in seconds, which can be a plus if you’re hoping for a faster turnaround. However, if additional information is needed or if incomplete information and documents have been submitted, this may delay your decision.

Once your application has been approved, you can expect the funds to be released to your bank account within three to five business days. You also have the option of having the funds sent directly to up to four creditors (you will only need to provide American Express with the credit card numbers and the amount to be paid to each).

And while American Express personal loans can be used for everything from debt consolidation to financing home repairs, there are some things you can’t use an American Express personal loan for, including post-secondary education expenses. , real estate, business expenses, vehicle purchases other than a deposit, to pay balances on American Express credit cards or for any unlawful purpose.

Mandate’s duration

Applicants can choose from terms ranging from 12 to 36 months.

At the end of the line

American Express® Personal Loans are a great, easy option for those who are already American Express Card members and familiar with the company’s products.

Some lenders charge a penalty for prepaying your personal loan because it means they would miss these interest charges, but American Express allows you to avoid these charges.

If you’re looking for slightly lower interest rates and the ability to get an Autopay rebate, check out LightStream Personal Loans, which offers this 0.25% APR deduction to automatically pay your bill each month.

And if you need a personal loan under $3,500, there are other options like PenFed personal loans, which start at just $600.

Our methodology

To determine which personal loans are best, Select analyzed dozens of US personal loans offered by online and brick-and-mortar banks, including major credit unions, that have no origination or enrollment fees, from APRs to fixed rate and flexible loan amounts. and terms tailored to a range of financing needs.

When selecting and ranking the best personal loans, we focused on the following characteristics:

  • No creation or registration fees: None of the lenders on our top list charge borrowers an upfront fee for processing your loan.
  • Fixed APR: Variable rates can go up and down over the life of your loan. With a fixed-rate APR, you fix an interest rate for the life of the loan, which means your monthly payment won’t vary, making it easier to plan your budget.
  • Flexible minimum and maximum loan amounts/terms: Each lender offers a variety of financing options that you can customize based on your monthly budget and how long you need to pay off your loan.
  • No prepayment penalties: The lenders on our list do not charge borrowers for prepaying loans.
  • Simplified application process: We looked at whether lenders offered same-day approval decisions and a fast online application process.
  • Customer service: Every loan on our list offers customer service available by phone, email or secure online messaging. We have also opted for lenders that have a resource center or an online advice center to help you learn about the personal loan process and your finances.
  • Disbursement of funds: The loans on our list provide funds quickly by electronic transfer to your checking account or in the form of a paper check. Some lenders (which we have noted) offer the option of paying your creditors directly.
  • Automatic payment discounts: We’ve noted lenders who reward you for signing up for autopay by reducing your APR by 0.25% to 0.5%.
  • Creditor Payment Limits and Loan Sizes: The lenders above offer loans of varying sizes, ranging from $500 to $100,000. Each lender advertises their respective payment limits and loan amounts, and completing a pre-approval process can give you an idea of ​​what your interest rate and monthly payment would be for such an amount.

After reviewing the features above, we’ve sorted our recommendations based on overall financing needs, debt consolidation and refinance, small loans, and overnight financing.

Note that advertised rates and fee structures for personal loans are subject to fluctuation in accordance with the Fed rate. However, once you have accepted your loan agreement, a fixed rate APR will guarantee the interest rate and the monthly payment will remain constant for the duration of the loan. Your APR, monthly payment, and loan amount depend on your credit history and creditworthiness. To take out a loan, lenders will do a credit check and ask for a full application, which may require proof of income, identity verification, proof of address and more.

Editorial note: Any opinions, analyses, criticisms or recommendations expressed in this article are those of Select’s editorial staff alone and have not been reviewed, endorsed or otherwise endorsed by any third party.

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Who torpedoed Marcos’ economy? https://blogcampcee.com/who-torpedoed-marcos-economy/ Sun, 27 Feb 2022 13:01:48 +0000 https://blogcampcee.com/who-torpedoed-marcos-economy/
STARLINE-FREEPIK

In / A Manila Time article published on January 24, titled “Did Ninoy torpedo Marcos’ economy to sink it?”, columnist Rigoberto Tiglao argued that Ninoy Aquino’s return to the Philippines and his assassination in 1983 sank the economy philippines, causing it to default on its foreign debt in october of that same year. According to Tiglao, Aquino made the Marcos era the “darkest years in the country”.

This article explains why this statement is false. But don’t take it from me, take it from Tiglao’s own arguments and data, as found in his earlier articles dating back to 1988.

In a 2016 Manila Time article, Tiglao wrote, “Ninoy Aquino’s assassination in August 1983 only hastened, but was not really the reason, for the default.” It is therefore disconcerting that in the space of a few years, Tiglao has gone from acknowledging that Ninoy’s assassination was only a trigger for the downfall of our economy to blaming him for the economic collapse.

The Philippines defaulted on its foreign loans a few months after the assassination of Ninoy Aquino in 1983, and experienced a deep recession in 1984 and 1985. However, at that time a political and economic crisis, a “perfect economic storm” , had been preparing for a long time. .

The crisis was the result of an accumulation of internal (mismanagement of resources, corrupt crony schemes, inefficient spending, massive and unpredictable corruption) and external (the global debt crisis of the 1980s) factors. While Tiglao’s 2022 column delved into the effect of the global debt crisis on our own economic collapse, he failed to mention the huge role played by the regime’s poor economic policy, on which he blamed. written articulately in his previous works.

To further defend the dictatorship’s economic policy and shift the blame to Ninoy, Tiglao asserted that the regime’s economic performance should be understood in two parts: the first being a period of growth and prosperity from 1972 to 1980, and the second , the era of economic collapse thereafter.

He claimed that during the “golden years” of martial law from 1972 to 1980, the economy grew robustly, which is why there was a lot of support for martial law and Marcos at the time. Indeed, for the elite, the early years of martial law were prosperous and the business environment favored them.

However, in a chapter Tiglao wrote in the 1988 book Dictatorship and revolution: roots of popular power, he wrote that it was only a semblance of prosperity. He noted that “the regime began accumulating its foreign debt at this time, partly to finance the infrastructure projects that would artificially stimulate the economy, and partly to finance the growth of a faction of the Filipino ruling elite who granted [Marcos] absolute loyalty: the “friends”.

This façade of prosperity brought about by massive infrastructure spending (financed by foreign debt) pushed the elite to embrace martial law. Economic power was concentrated in the hands of very few, and crony capitalism, defined as an economic system characterized by close and mutually beneficial relationships between government officials and business leaders, flourished.

In 1988, Tiglao also noted that this massive infrastructure development policy would later become one of the factors that caused the debt crisis of 1983, and that it was “the path of debt-led growth that led to the Philippines’ worst recession and ultimately contributed to the debt crisis. the fall of the regime. This contradicts Tiglao’s later writings – in 2018, in his book DebunkedTiglao defended the path of debt-led growth, citing that countries in Latin America and Asia also borrowed from US banks in the 1970s.

The Philippines’ debt-driven growth strategy failed because during the Marcos dictatorship, corruption was massive, unchecked, and unpredictable, and the spending of economic resources was unproductive and inefficient. In Debunked, Tiglao described the Filipino elite as “rapacious, in stark contrast to their Southeast Asian counterparts”. He cited a study that, during the Marcos era, “the elite from 1970 to 1981 took away $3.1 billion in massive capital flight.” (This was about a third of the country’s increase in foreign debt.)

Also, business may have boomed for the middle and upper classes, but as Tiglao explained in 1988 in Dictatorship and Revolution, poverty and inequality have worsened, leading to massive social unrest. He used the following data to illustrate poor distribution results during martial law:

• Due to the Green Revolution, poverty has increased in rural areas. The Masagana 99 program, which used high-yielding rice varieties dependent on fertilizers and pesticides, did not benefit all farmers equally. Poorer farmers were disadvantaged due to high investment costs. The sector was now vulnerable to the volatile influence of the international market economy. Because fertilizers and pesticides were petroleum-based, when the oil shocks hit in 1979, the government could no longer subsidize these inputs. Due to their lack of capital, farmers were swindled into more inequitable sharing arrangements with landlords or traders. Many had to sell their land and massive impoverishment ensued.

• Wage rates have also fallen considerably. From 1972 to 1978, the real wages of skilled urban workers fell by 24%, while those of unskilled workers fell by 32%. The regime has indeed issued a decree ordering the Central Bank to stop the investigations that determined these salaries.

• In central Luzon and southern Mindanao, more than 80% of the rural population lived below the poverty line. More than 40% of the rural population lived below the poverty line in the mid-1970s, and a majority of them depended on rice cultivation and maize cultivation.

• Sugar cane workers and coconut farmers under the Benedicto sugar monopoly and the Cojuangco coconut conglomerate were impoverished. When the Benedictos mechanized the sugar industry in the 1980s to reduce production costs, thousands of sugar workers lost their jobs. Meanwhile, capital was extracted from coconut farmers through the coconut tax, and when the commodity boom ended in 1974, there was massive impoverishment in the coconut areas.

Tiglao’s own arguments from his 1988 article show that martial law was certainly not the golden age, especially for the rural poor.

In 1981, the economy stagnated. Tiglao’s 2022 column blamed this not on government mismanagement, but on external factors: the “Volcker shock” in late 1979 when the U.S. Federal Reserve raised high interest rates and the soaring oil prices in 1980 due to the Iraq-Iran war. In 1982, Mexico defaulted on its foreign loans.

In 1983, Ninoy returned from his three-year exile in the United States. At this point, the country was already facing a huge economic crisis and Marcos’ health was deteriorating. In 2022, Tiglao, again blaming Ninoy, said that Ninoy had returned home to replace Marcos, and if he hadn’t been assassinated, a coup would have ensued, which would also have led to an economic crisis.

After Ninoy’s assassination, the political situation was unstable and business confidence plummeted. The Central Bank had gone bankrupt and at one point we didn’t even have enough money for our basic imports. Fifty-four days after Ninoy’s assassination, the Philippines defaulted on its foreign loans by declaring a moratorium on debt repayment. In 1984, we plunged into what was then the worst postwar recession the country had ever experienced.

Ultimately, the Philippines’ economic collapse was caused by a confluence of many factors, and as Tiglao mentioned in 1988, Marcos’ economic policies led to this catastrophe. Weak institutions, inefficient spending (both by the government and the Marcos family using public accounts), uncontrollable corruption, and crony capitalism embedded in traditional sectors under Marcos had already taken their toll on the country by the time Ninoy was killed.

“It was the straw that broke the camel’s back in the quagmire of our foreign debt,” Tiglao wrote of Aquino’s 2020 assassination, acknowledging that the Philippines was already struggling when it comes to our external debt in August 1983.

In 1988, Tiglao cited the Marcos regime’s economic policy decisions as contributing factors to the 1983 debt crisis, and he even recently claimed that Ninoy’s assassination was not really the reason for our collapse. His 2022 claim that “Ninoy torpedoed the economy” is therefore a complete about-face and distortion of the narrative.

If we’re to blame anyone for the “country’s darkest years,” it should rightly be Marcos. As Tiglao said in Debunked“Of course, the responsibility stopped with Marcos, and he had command responsibility.”

Pia Rodrigo is the Strategic Communications Manager for Action for Economic Reforms.

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When is it okay to use your emergency fund to pay off debt? https://blogcampcee.com/when-is-it-okay-to-use-your-emergency-fund-to-pay-off-debt/ Fri, 25 Feb 2022 19:41:15 +0000 https://blogcampcee.com/when-is-it-okay-to-use-your-emergency-fund-to-pay-off-debt/

Select’s editorial team works independently to review financial products and write articles that we think our readers will find useful. We earn commission from affiliate partners on many offers, but not all offers on Select are from affiliate partners.

For many people, getting out of debt as quickly as possible is a top priority, especially if you’ve been carrying debt for several years and are crushed by high interest charges. So if you are so close To get rid of your balance once and for all, you might be wondering if it’s a good idea to use savings from an emergency fund to pay off your debt for good.

Why paying off a debt can seem so urgent

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Another advantage when it comes to paying off debt quickly is being able to redirect your money to other goals. Northwestern Mutual’s 2020 Planning and Progression Study found that 58% of respondents with debt believe their balance is preventing them from reaching major financial milestones. Of these respondents, 36% have delayed making major purchases, 29% said they have delayed saving for retirement, 18% have delayed buying a home, 8% have delayed having children and 7% delayed marriage.

So being able to finally reach certain financial goals can be a big factor when it comes to aggressively paying off your debt. If you’re spending $500 a month on credit card or loan payments, you can redirect that $500 toward retirement savings, a wedding, or buying a house once you’re debt-free. .

Should you use your emergency fund to pay off your debts?

The short answer is this: it depends on how much debt you have and how much money you have in your emergency fund.

Keep in mind that your an emergency fund exists to cover unforeseen expenses that would otherwise slow you down financially and put you further into debt. So if you had to use a significant portion of your emergency fund to pay off debt, you could significantly reduce your ability to cover a large, unexpected expense. This is why you need to consider the amount of your debts and the size of your emergency fund.

For example, if you have $10,000 in your emergency fund and a credit card balance of $5,000, paying off the debt would wipe out half of your emergency fund — and that could put you in a predicament. more vulnerable financial position if you don’t have one. other savings. But if you have an emergency fund of $10,000 left and a credit card balance of $500, you may be more likely to use some of your savings while feeling confident in your ability to manage. a significant unforeseen expense.

“If you reimburse these types of [debts] makes you vulnerable to a financial crisis that could potentially hurt your credit, file for personal bankruptcy, or be temporarily or permanently impoverished, so the financial reward of saving interest on debt reduction may not be worth the risk,” says JR Robinson, a personal finance expert at Credello.

And if you decide you could use some of the money in your emergency savings to pay off your debt, don’t forget to take steps to replenish your emergency fund.

Methods to pay off debt faster

LightStream Personal Loans

  • Annual Percentage Rate (APR)

    2.49% to 19.99%* when you sign up for autopay

  • Purpose of the loan

    Debt consolidation, renovation, car financing, medical expenses, marriage and more

  • Loan amounts

  • terms

  • Credit needed

  • Assembly costs

  • Prepayment penalty

  • Late charge

SoFi Personal Loans

  • Annual Percentage Rate (APR)

    5.74% to 21.28% when you sign up for autopay

  • Purpose of the loan

    Debt consolidation/refinance, home improvement, relocation assistance or medical expenses

  • Loan amounts

  • terms

  • Credit needed

  • Assembly costs

  • Prepayment penalty

  • Late charge

Another effective option can sometimes be to use a 0% APR balance transfer card if high interest rates make it difficult to pay off your credit card debt. Say you apply for a credit card like the Citi Simplicity® card or the US Bank Visa® Platinum card: you’ll be able to transfer the balance from an existing credit card to a new card and pay off as much as you can. with an introductory offer at 0% interest.

Citi Simplicity® Card

  • Awards

  • welcome bonus

  • Annual subscription

  • Introduction AVR

    0% for 21 months on balance transfers; 0% for 12 months on purchases

  • Regular APR

    14.74% to 24.74% variable

  • Balance Transfer Fee

    5% of each balance transfer; $5 minimum

  • Foreign transaction fees

  • Credit needed

U.S. Bank Visa® Platinum Card

On the secure site of US Bank

  • Awards

  • welcome bonus

  • Annual subscription

  • Introduction AVR

    0% for the first 20 billing cycles on balance transfers and purchases*

  • Regular APR

    14.49% – 24.49% (variable)*

  • Balance Transfer Fee

    Either 3% of the amount of each transfer or $5 minimum, whichever is greater

  • Foreign transaction fees

  • Credit needed

Finally, creating a budget can help you pay off debt faster while benefiting your overall financial health.

“By tracking your money and changing your spending habits, you can free up money to pay off debt faster,” says Robinson. “Look for ways to spend less money and also make more money. Where can you save money? Can you cook more and order less? How about a side gig or selling some items you own?”

Check out Select’s in-depth coverage at personal finance, technology and tools, The well-being and more, and follow us on Facebook, instagram and Twitter to stay up to date.

Editorial note: Any opinions, analyses, criticisms or recommendations expressed in this article are those of Select’s editorial staff only and have not been reviewed, endorsed or otherwise endorsed by any third party.

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How to find the best bridging loan – Forbes Advisor UK https://blogcampcee.com/how-to-find-the-best-bridging-loan-forbes-advisor-uk/ Fri, 25 Feb 2022 17:26:48 +0000 https://blogcampcee.com/how-to-find-the-best-bridging-loan-forbes-advisor-uk/

Finding the best bridge loan for your situation can ease the burden at a time when many financial and practical plates are spinning at the same time.

But, as always, the first step is to fully understand what this type of loan is, how it works and what the risks are.

What is a bridging loan?

A bridge loan is a type of short-term financing typically used when you want to buy a new home before selling your old one.

The loan “bridges” the purchase and the sale.

Bridge loans are usually taken out for a maximum of 12 months and can normally be closed fairly quickly.

What else can a bridging loan be used for?

Although bridging loans are typically used when there is a gap in a residential real estate transaction, they are also often used by real estate investors and developers.

For example, if you buy a property at auction, you should normally complete the transaction within 28 days. This will not be enough time to arrange a standard mortgage, so bridge financing is used instead. The buyer can then remortgage with a traditional lender later.

Bridge loans can also have other uses for property. For example:

  • Real estate renovation
  • Buy a non-mortgage property
  • Buying a property with a short lease
  • Urgent real estate transactions

Bridge loans can also be used for non-property related reasons such as:

  • Repay debts or tax bills
  • Solve short-term business cash flow problems
  • Divorce settlements

Is a bridging loan a secured loan?

Yes, bridge loans are a type of secured loan, so you will need to set up an asset as collateral for the loan.

Having a ‘charge’ on your property means that there is a legal agreement for the lender to proceed with the sale of your property if you do not repay the loan as agreed.

If there are no other mortgages or loans on your property, the bridge loan will be a “first charge” loan. If you have a mortgage on your property, the bridge loan will be a “second charge” loan. Charges refer to the order debts that will be paid when the property is sold.

Because bridge loans are secured loans, you can usually be accepted even if you have bad credit. The downside is that your property may be repossessed if you don’t repay the loan as agreed.

You can usually borrow between £5,000 and £25m (sometimes more) on a bridge loan. The exact amount you can borrow will depend on the value of the property you are posting as collateral.

Where can I get a bridging loan?

  • Banks
  • construction companies
  • Specialized bridging lenders
  • Relay brokers
  • Mortgage brokers

What is a bridging loan exit strategy?

Bridge loans are designed as a short-term financing solution. When you take out one, you’ll usually need to have a plan for how you’ll pay it back: this is called the ‘exit strategy’.

Typical exit strategies include:

  • Sell ​​the property you bought with the bridging loan
  • Selling another property you own
  • Repayment to a standard mortgage
  • Selling a business or other property
  • Money from a business transaction, divorce or inheritance

What are open and closed bridging loans?

Bridge loans can be “open” or “closed”.

Open bridging loans are generally more expensive. They do not have a fixed repayment date and are therefore more flexible than closed bridge loans.

Closed bridge loans require you to have an exit plan and set a payment date when you take out the loan. Closed bridging loans are usually contracted for a few weeks or a few months.

How much does a bridging loan cost?

Bridge loans are expensive compared to other types of mortgages or loans.

Since bridging loans tend to be short-term, interest is charged daily rather than annually. Annual Percentage Rates (APRs) can range from 6% to 20%. By comparison, standard mortgages can be as cheap as 1% or 2%.

Like other types of home financing, lenders offer bridging loans with fixed or variable interest rates.

In addition to interest, you will likely have to pay arrangement fees to the lender, administration fees, appraisal fees and legal fees for the transfer of ownership.

If a broker arranged the loan, there will likely be a fee for that as well.

Do I have to make monthly payments on a bridging loan?

Bridging lenders do not always require monthly repayment. Instead, interest payments are “accumulated”. This means that they are added to the loan and paid at the end of the term. However, this means that interest charges are compounded monthly and can add up quickly.

With some bridge loans, you can pay interest monthly, like an interest-only mortgage. Then you repay the principal of the loan at the end of the term.

Another option is “retained interest”. For example, a loan of £100,000 with an interest rate of 1% would represent £12,000 in interest over a period of 12 months. The lender keeps the £12,000 and the loan amount paid to you is £88,000.

Are bridging loans regulated?

Bridge loans can be regulated by the Financial Conduct Authority (FCA) or unregulated, depending on the nature of the loan.

If a borrower’s home (or a home occupied by close family members of the borrower) is used as collateral for the loan, the bridge loan must be sold as a regulated loan.

The regulations mean that consumers are protected against incorrect advice or mis-selling from lenders or brokers.

However, bridge loans taken out in the name of a business (not an individual) will not be regulated, as they are treated as a business transaction. This means the borrower has less protection.

Advantages and disadvantages of the bridging loan

Bridging loans mean quick access to cash that can help with real estate purchases and time-sensitive business transactions. They often prevent real estate chains from collapsing when a buyer pulls out.

Bridge loans can also provide funds for the purchase of property where the property is not mortgageable for any reason – such as being uninhabitable or having a short term lease.

With the right security, you can borrow a lot of money on a bridging loan and have different repayment options.

On the other hand, bridging loans can be very expensive. If you get the bridge loan on your house and you can’t repay the loan, your house could be repossessed.

For many borrowers, alternative financing options might work better.

How to find the best bridging loan?

Especially when it comes to high-risk financing options like bridge loans, it’s important to compare your options and understand the product before signing up.

A global bridging loan broker will be able to find the best option for your personal situation and guide you through the process. Some brokers do not charge a fee to the client.

You can also compare online bridging loan providers for rates and terms online, and reference any advice or recommendations in relation to this.

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