Motorcycle industry – La Bougeotte http://www.labougeotte.org/ Mon, 21 Nov 2022 17:44:15 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://www.labougeotte.org/wp-content/uploads/2021/08/cropped-icon-32x32.png Motorcycle industry – La Bougeotte http://www.labougeotte.org/ 32 32 November 21, 2022 Home Equity Loan Rates: Rates Rise Again https://www.labougeotte.org/november-21-2022-home-equity-loan-rates-rates-rise-again/ Mon, 21 Nov 2022 17:00:00 +0000 https://www.labougeotte.org/november-21-2022-home-equity-loan-rates-rates-rise-again/ Building equity in your home starts the moment you put down your down payment. This equity continues to build as you pay down your mortgage balance, make improvements to your home, and let time pass. This doesn’t just work to your advantage when you choose to sell your home; you can borrow against your home […]]]>

Building equity in your home starts the moment you put down your down payment. This equity continues to build as you pay down your mortgage balance, make improvements to your home, and let time pass. This doesn’t just work to your advantage when you choose to sell your home; you can borrow against your home in the form of a home equity loan for some of life’s major financial milestones.

Sometimes called a second mortgage, a home equity loan uses your home as collateral in exchange for a one-time payment. The terms of this loan will depend on a number of factors, including your credit score, the market value of your home, market conditions, and more.

Earlier this month, the Federal Reserve raised its key rate by 0.75% to reach a target range of 3.75% to 4%. When these rates go up, it is not uncommon for loan rates to go up as well.

This week’s home equity loan rates

Home equity loan rates remained unchanged this week after rising slightly last week in response to the Fed’s latest decision to rein in inflation. Here’s a look at this week’s average interest rates for home equity loans, compared to last week’s rates, as well as the best home equity loan rates in your area.

What is a home equity loan?

A home equity loan allows you to borrow against the market value of your home and receive a lump sum payment in return. For homeowners looking to finance larger projects or more expensive expenses, borrowing against their home equity can be an invaluable tool, especially because home equity loans tend to have higher interest rates. lower than other types of loans like student loans or personal loans.

A few cases where you might consider a home equity loan:

  1. Home Improvement Projects: Adding a deck to your home or renovating your bathroom or kitchen can be major value drivers and help you get a better return on your investment if you decide to sell your home. But these upgrades can also be expensive and not a perfect fit for your budget. Using a home equity loan to finance these projects gives you the ability to pay for them over time, and you have the option of using your home as collateral for a home equity loan to cover the cost of these projects.
  2. College costs: Home equity loans generally have lower borrowing rates, making them an attractive option for covering tuition costs. The downside: You might also miss out on some loan protections and forgiveness programs available to federal borrowers. Going this route could help you save money, but there are always financial risks, so be careful.
  3. Debt Consolidation: High-interest debt can be difficult to pay off if you pay more interest each month than your principal balance. Using a home equity loan to simplify multiple repayments and potentially get a lower interest rate could save you tons over the length of your repayment period.
  4. Emergency expenses: It’s important to have an emergency fund to catch you in the event of a fall, but building up a decent cushion takes time. For example, if you find yourself in a situation where you need to cover unexpected medical expenses, a home equity loan might be a relatively inexpensive option for doing so. However, it is important to make a plan for how you will repay this loan once all is said and done.

How do I calculate the equity in my home?

To determine the equity in your home, you will need to calculate the difference between the fair market value of your home and the amount you still owe. Assume your current mortgage balance is $150,000 and the current market value of your home is $350,000; that means you have about $200,000 of equity in your home.

Keep in mind that the market value of your home will fluctuate over time as you pay down your mortgage balance, the condition of your home changes, or there are changes in the housing market. and property values ​​in your own neighborhood. Keeping a close eye on your mortgage balance and changes in your neighborhood and the economic climate around you can give you a more accurate reading of how your home equity is changing over time.

Advantages and disadvantages of home equity loans

Although home equity loans offer homeowners an additional opportunity to finance major purchases, they are not without risk. A home equity loan still requires you to use your home as collateral. If you don’t have a solid repayment strategy in place or if your home’s equity drops drastically, you could still end up paying thousands in interest or owing more than your property is worth.

Advantage: Home equity loans usually have fixed interest rates. Consistent payment amounts can make repayment more manageable.

Pros: Interest on home equity loans may be tax deductible. Who doesn’t love a freebie at tax time? If you use your home equity loan to cover the cost of home renovations and meet IRS requirements, you could lower the top of your tax bill a bit.

Disadvantage: Using your home as collateral is a risky decision. Defaulting on a home equity loan could mean the loss of your home.

Disadvantage: If the value of your home drops, you may end up owing more. Negative equity is a reality. If you borrow a large amount and the value of your home drops below that amount, you could end up with more debt than your home is actually worth.

Before taking out a home equity loan, weigh the potential risks and rewards to help you decide if it’s best for your long-term financial plan.

Frequently Asked Questions

What credit score do you need for a home equity loan?

A FICO score of at least 680 is generally required by most lenders for a home equity loan.

Are mortgage rates higher than mortgage rates?

Home equity loan rates are slightly higher than mortgage rates because these loans are only paid off after the main mortgages have been paid in full. If the home is foreclosed, the lender who holds the home equity loan is not paid until the first mortgage lender is paid.

Are home equity loans tax deductible?

The interest you pay on home equity loans may also be tax deductible for the first $750,000 for single filers ($375,000 if you are married and filing separately). To qualify for this deduction, you must use the funds to “purchase, build, or substantially improve your home” and itemize your returns, according to the IRS.

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No relief expected on mortgage rates https://www.labougeotte.org/no-relief-expected-on-mortgage-rates/ Fri, 18 Nov 2022 08:14:41 +0000 https://www.labougeotte.org/no-relief-expected-on-mortgage-rates/ WASHINGTON — The average long-term U.S. mortgage rate fell nearly half a point this week, but will likely remain a significant headwind for potential buyers as Federal Reserve officials all but promise further increases rate in the coming months. Mortgage buyer Freddie Mac reported on Thursday that the 30-year average key rate fell to 6.61% […]]]>

WASHINGTON — The average long-term U.S. mortgage rate fell nearly half a point this week, but will likely remain a significant headwind for potential buyers as Federal Reserve officials all but promise further increases rate in the coming months.

Mortgage buyer Freddie Mac reported on Thursday that the 30-year average key rate fell to 6.61% from 7.08% last week. A year ago, the average rate was 3.1%.

The rate for a 15-year mortgage, popular with those refinancing their homes, fell to 5.98% from 6.38% last week. It was 2.39% a year ago.

At the end of last month, the average long-term US mortgage rate crossed the 7% mark for the first time since 2002.

Two weeks ago, the Fed raised its short-term lending rate by an additional 0.75 percentage points, three times its usual margin, for the fourth time this year as part of its strategy to combat the inflation. Its key rate is now in a range of 3.75% to 4%.

There had been some hope that the Fed would begin to taper rate increases as more evidence came in that prices might have peaked. However, recent comments from Fed officials have dampened that optimism.

James Bullard, who heads the Federal Reserve Bank of St. Louis, said Thursday that the Fed may need to raise its benchmark interest rate much higher than it had previously expected to get inflation under control.

The next two-day Fed rate policy meeting will end on December 14.

The Labor Department reported last week that consumer inflation hit 7.7% in October from a year earlier, the lowest year-over-year rise since January. Excluding volatile food and energy prices, “core” inflation has increased by 6.3% over the past 12 months. On Wednesday, Labor announced that wholesale prices fell for the fourth consecutive month.

Those numbers were all lower than economists had expected, but it remains to be seen whether that will be enough to prompt the Fed to ease the oversized rate hikes.

Three weeks ago, the average long-term mortgage rate in the United States exceeded 7% for the first time in more than two decades, which, combined with skyrocketing house prices, crushed the purchasing power of buyers. adding hundreds of dollars to monthly mortgage payments.

Sales of previously owned homes have declined for eight straight months as borrowing costs have become too much of a barrier for many Americans who are already paying more for food, gas and other necessities. On top of that, homeowners looking to upgrade or change location have been delaying listing their homes because they don’t want to jump into a higher rate on their next mortgage.

The slump in the housing market prompted real estate companies to revise their financial outlook and reduce their workforce. Online property broker Redfin is laying off 862 staff and closing its instant cash offering subsidiary RedfinNow.

Redfin also cut 470 jobs in June, blaming slowing home sales. Through attrition and layoffs, Redfin has eliminated more than a quarter of its workforce on the assumption that the housing downturn will last “at least until 2023”, it said in a regulatory filing.

Another online real estate broker, Compass, cut hundreds of jobs this year.

Although mortgage rates don’t necessarily reflect Fed rate increases, they tend to track the yield of the 10-year Treasury. Performance is influenced by a variety of factors, including investors’ expectations for future inflation and global demand for US Treasuries.

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DBS and OCBC Increase Fixed Home Loan Rates to 4.3%: What Buyers Need to Know https://www.labougeotte.org/dbs-and-ocbc-increase-fixed-home-loan-rates-to-4-3-what-buyers-need-to-know/ Tue, 15 Nov 2022 03:28:00 +0000 https://www.labougeotte.org/dbs-and-ocbc-increase-fixed-home-loan-rates-to-4-3-what-buyers-need-to-know/ SINGAPORE — Home loan rates rose above the 4% mark after DBS Bank and OCBC Bank raised their fixed-rate packages on Tuesday. DBS now offers a rate of 4.25% with terms of two to five years, while OCBC offers one- and two-year fixed rate packages at 4.3%. A DBS spokesperson told the Straits Times that […]]]>

SINGAPORE — Home loan rates rose above the 4% mark after DBS Bank and OCBC Bank raised their fixed-rate packages on Tuesday.

DBS now offers a rate of 4.25% with terms of two to five years, while OCBC offers one- and two-year fixed rate packages at 4.3%.

A DBS spokesperson told the Straits Times that many customers continue to choose fixed rate plans in anticipation of further rate hikes in the United States.

The bank is therefore offering longer-term loans of three to five years, so customers can choose to lock in fixed rates for a longer period to give themselves peace of mind, he added.

OCBC’s Head of Home Loans, Ms Maryanne Phua, said popular demand prompted the bank to reintroduce fixed-rate offers, which were temporarily pulled from the market in late October.

It’s about giving customers the flexibility to opt for the content that best suits their needs, she added.

The decisions by DBS and OCBC come after HSBC raised fixed rates on its two- and three-year home loans to 4.25% on November 8.

This brings fixed mortgage rates above the 4% medium-term interest rate floor that the Monetary Authority of Singapore (MAS) has set to determine the amount of loan an individual can apply for.

The medium-term floor interest rate framework ensures that people continue to borrow or take out loans cautiously as interest rates rise.

Even though the latest home loan rates have exceeded the floor rate by 4%, borrowers need not worry too much about paying more than they can afford.

Indeed, OCBC and HSBC already use a higher rate of 4.5% to calculate the maximum loan amount a homeowner can borrow, while DBS uses 4.25%.

As a result, homeowners will only be allowed to borrow a lower loan amount, ensuring that their monthly payments can still meet the total debt service ratio threshold, which states that a borrower’s total debts must represent no more than 55% of their monthly income.

For example, for a homeowner with a fixed monthly income of $10,000 and a loan term of 25 years, the maximum amount he can borrow at the MAS medium-term loan rate of 4% is approximately 1 .05 million.

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Aggregate claim for interest on home loan limited to Rs. 2,000,000 https://www.labougeotte.org/aggregate-claim-for-interest-on-home-loan-limited-to-rs-2000000/ Sat, 12 Nov 2022 03:21:26 +0000 https://www.labougeotte.org/aggregate-claim-for-interest-on-home-loan-limited-to-rs-2000000/ I am staying in a rented house in Mumbai. I have an apartment in Jaipur, which is rented and for which I pay equivalent monthly installments (EMI) on my mortgage. Now I have booked another apartment in Mumbai which is due for possession in March 2025. I have taken out a home loan and borrowed […]]]>

I am staying in a rented house in Mumbai. I have an apartment in Jaipur, which is rented and for which I pay equivalent monthly installments (EMI) on my mortgage. Now I have booked another apartment in Mumbai which is due for possession in March 2025. I have taken out a home loan and borrowed from my wife for the apartment in Mumbai. We are planning to stay in Mumbai apartment. Can I also apply for Mumbai house tax benefits?

Answer: For the rented apartment in Jaipur, you are entitled to claim a deduction at the rate of 30% of the rent you received, in addition to the regular interest you paid.

For the second house, which is still under construction, you will be able to benefit from tax advantages from the year of completion and possession. You will be able to claim the total interest paid during the construction period in five equal installments beginning in the year in which construction is completed and possession is obtained. Since you will be staying in the house, the aggregate claim amount for interest paid to your wife and the bank will be limited to Rs. 2 lakh including one-fifth of the interest paid during the construction period. Note that you cannot offset losses under “main income from home ownership” beyond Rs 2 lakh per annum, whether you own one house or multiple houses. The unabsorbed loss is allowed to be carried forward for eight years for offset against income from home ownership only.

For the repayment of the principal of the home loan to the bank, you can claim tax benefits under Section 80C of the Income Tax Act 1961 up to Rs. 1.5 lakh every year for all the houses taken together.

For Mumbai apartment, you will be able to claim it from the year of completion of the house along with other qualifying items such as the Public Provident Fund (PPF), the savings scheme linked to the equity (ELSS), National Savings Certificate (NSC), life insurance premiums, etc.

Note that you will not be able to claim any tax benefit in respect of the repayment of the mortgage, if any, granted to the bank for the years during which the construction of the house was not completed. No tax benefit is available with respect to the repayment of the loan taken out with your spouse.

I received compensation of Rs. 1 crore for my ancestral farmland, which I used for farming, and which has now been acquired by the government of Rajasthan. The documents were signed on April 30, 2022. I plan to buy another agricultural land within two years. Can I claim a tax exemption on the agricultural land that I will buy?

Answer: First you need to check whether the land was farmland within the meaning of the Income Tax Act 1961. You need to have it reviewed by a chartered accountant based on the location and population of the area where the land is located. If it falls under the definition of “farmland”, you are not subject to income tax on the compensation received.

If the land is not agricultural land within the meaning of income tax, you can still claim the long-term capital gains exemption, if the land has been used for agricultural purposes during of the last two years, either by you or your parents, provided that you invest the capital gains for the purchase of other land to be used for farming within two years of the transfer date.

The land being an ancestral property, it is unlikely that you know its acquisition cost.

You can therefore take the fair market value of this land on April 1, 2001 as the cost price. You can calculate your long-term capital gains by applying the cost inflation index to fair market value on April 1, 2001.

Note that if you are unable to purchase this new land for farming purposes before the deadline for filing your return, i.e. July 31, 2023, you must deposit the amount of the gains in indexed capital into the capital gains account with a bank which you can use to buy the land for farming later.

The author is a tax and investment expert

(Disclaimer: The opinions expressed are those of the author and Outlook Money does not necessarily subscribe to it. Outlook money will not be responsible for any damage caused to any person/organization directly or indirectly.)

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Loan Management Software Market: Latest Industry Trends, Occupations, Supply, Demand, Outlook by 2031 https://www.labougeotte.org/loan-management-software-market-latest-industry-trends-occupations-supply-demand-outlook-by-2031/ Thu, 10 Nov 2022 09:34:00 +0000 https://www.labougeotte.org/loan-management-software-market-latest-industry-trends-occupations-supply-demand-outlook-by-2031/ PORTLAND, OREGAON, USA, Nov. 10, 2022 /EINPresswire.com/ — Allied Market Research has released a report titled “Loan Servicing Software Market by Component (Software, Service), by Deployment Mode (On-premises, Cloud), by Company Size (Large Enterprises, Small & Medium Enterprises (SMEs)), By Application (Commercial Lending Software, Loan Management Software, Loan Origination Software), By End User (Banks, Credit […]]]>

PORTLAND, OREGAON, USA, Nov. 10, 2022 /EINPresswire.com/ — Allied Market Research has released a report titled “Loan Servicing Software Market by Component (Software, Service), by Deployment Mode (On-premises, Cloud), by Company Size (Large Enterprises, Small & Medium Enterprises (SMEs)), By Application (Commercial Lending Software, Loan Management Software, Loan Origination Software), By End User (Banks, Credit Unions , Mortgage Lenders & Brokers, Others): Global Opportunities Analysis and Industry Forecast, 2021-2031”.

According to the latest report, over the next few years the market will witness a major peak in CAGR. Technological innovations and increase in disposable income would contribute significantly to the growth of the market. The report offers a comprehensive study of the major market players, key trends, and driving factors.

Grab Sample Report with Industry Insights @ https://www.alliedmarketresearch.com/request-sample/19884

The Global Loan Management Software Market report includes in-depth information about the driving factors and opportunities propelling the market growth. Additionally, the report includes an analysis of challenges and restraining factors, which helps market entrants understand the pitfalls of the industry. Technological advancements and an increase in demand are the major reasons for the growth of the market. The untapped potential of developing countries will open new opportunities in the years to come.

Market growth is analyzed using several strategic tools and methods. SWOT analysis and Porter’s Five analysis are offered in the report. These tools offer a detailed analysis of the major determinants of market growth and are essential for taking advantage of lucrative opportunities in the market.

The report will help leaders:
• Understand the dynamics of the market as a whole
• Inspect and review the competitive scenario and future market landscape with the help of different restraints including Porter’s five forces
• Understand the impact of different government regulations throughout the global health crisis and assess the state of the global and Asia-Pacific speed camera market during this challenging time
• Consider the portfolios of functional protruding players in the market in conjunction with the in-depth study of their products/services
• Have a compact idea of ​​the most revenue-generating segment

The Global Loan Management Software Market report provides detailed market segmentation.

Key segmentation

Making up
• Software
• Service

Deployment mode
• On the site
• Cloud
• Size of the company
• Large companies
• Small and medium-sized enterprises (SMEs)

Application
• Commercial lending software
• Loan management software
• Loan origination software
• Final user

Banks
• Credit unions
• Mortgage lenders and brokers
• Others

By region
• North America (United States, Canada)
• Europe (UK, Germany, France, Italy, Spain, Netherlands, Rest of Europe)
• Asia-Pacific (China, India, Japan, Australia, Singapore, rest of Asia-Pacific)
• LAMEA (Latin America, Middle East, Africa)

The report includes a comprehensive analysis of sales, revenue, growth rate and market share of each segment over the historical period and the forecast period, along with graphs and tables.

Interested stakeholders can inquire about purchasing the report @ https://www.alliedmarketresearch.com/purchase-enquiry/19884

Covid-19 pandemic had a significant impact on the growth of the Global Loan Management Software Market. Prolonged lockdown in several countries and restrictions on import expert have disrupted the supply chain. In addition, labor shortages and rising commodity prices affected the market.

The global Loan Management Software Market industry is analyzed based on region as well as the competitive landscape of each region. The regions included in the report are North America (United States, Canada, and Mexico), Europe (Germany, France, United Kingdom, Russia, and Italy), Asia-Pacific (China, Japan, Korea , India and Southeast Asia), South America (Brazil, Argentina, Colombia), Middle East and Africa (Saudi Arabia, United Arab Emirates, Egypt, Nigeria and South Africa). This information helps in formulating business strategies and opening up lucrative opportunities.

The Global Loan Management Software Market report includes an in-depth analysis of the top 10 market players active in the global market. The study includes the analysis of sales, production and revenue. The major market players are Applied Business Software, Bryt Software LLC, C-Loans, Inc., Emphasys Software, Fiserv, Inc., GOLDPoint Systems, Inc., Grants Management System (GMS), Graveco Software Inc., Nortridge Software, LLC. , Shaw Systems Associates, LLC, Q2 Software, Inc., LoanPro, FICS, Margill, The Constellation Mortgage Solutions, Neofin, TurnKey Lender. These market players have adopted several business strategies such as new product launches, mergers and acquisitions, partnerships and collaborations to maintain their presence in the market. The market report includes statistics, tables, and graphs to offer a detailed study of the Loan Management Software Market industry.

Get Detailed Study of Covid-19 Impact Analysis on Loan Management Software Market Market @ https://www.alliedmarketresearch.com/request-for-customization/19884

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About Us:
Allied Market Research (AMR) is a full-service market research and business consulting division of Allied Analytics LLP based in Portland, Oregon. Allied Market Research provides global corporations as well as small and medium enterprises with unrivaled quality “market research reports” and “business intelligence solutions”. AMR has a focused vision to provide business insights and advice to help its clients make strategic business decisions and achieve sustainable growth in their respective market areas.

Pawan Kumar, CEO of Allied Market Research, leads the organization in delivering high quality data and insights. We maintain professional relationships with various companies which helps us to extract market data which helps us to generate accurate research data tables and confirm the utmost accuracy of our market predictions. All data presented in the reports we publish are drawn from primary interviews with senior executives from leading companies in the relevant field. Our secondary data sourcing methodology includes extensive online and offline research and discussions with knowledgeable industry professionals and analysts.

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ozone group: ozone group will restructure its loan by selling commercial and residential assets https://www.labougeotte.org/ozone-group-ozone-group-will-restructure-its-loan-by-selling-commercial-and-residential-assets/ Sat, 05 Nov 2022 07:43:00 +0000 https://www.labougeotte.org/ozone-group-ozone-group-will-restructure-its-loan-by-selling-commercial-and-residential-assets/ Property developer Ozone Group is looking to restructure its loan by selling commercial and residential assets, according to people familiar with the matter. The Bengaluru-based company, which has more than Rs 4,000 crore debt on its books, is in talks with developers and investors to sell its assets and reduce its debt. Yes Bank, Edelweiss […]]]>
Property developer Ozone Group is looking to restructure its loan by selling commercial and residential assets, according to people familiar with the matter.

The Bengaluru-based company, which has more than Rs 4,000 crore debt on its books, is in talks with developers and investors to sell its assets and reduce its debt.

Yes Bank, Edelweiss Indian Bulls and Piramal Fund Management are among its lenders.

“The company is still trying to stay afloat and is in talks with some of the big global funds to see if they can create a residential platform,” said three people with knowledge of the debt restructuring. “There is no additional disbursement from existing lenders, and any new funding will facilitate liquidity.”

The company’s chairman and chief executive, S Vasudevan, could not be reached for comment.

Ozone had previously raised funds from Piramal Fund Management and Edelweiss for some of its projects in Bengaluru. Yes Bank is exposed to over 5 million square feet of the company’s portfolio.

“Ozone is looking to attract project-level investors and also pursue portfolio-level deals for commercial projects,” one of the previously quoted people said. “He’s considering giving some of his projects over to the small capital development management deal as well.”

In 2022, Ozone WF-8 secured financial assistance from the government-backed Special Window for Affordable and Middle-Income Housing (SWAMIH) fund. The fund has committed Rs 250 crore towards the completion of one of the most prestigious projects in Bengaluru.

“Construction is in full swing and the project is expected to be completed within the next 2 years,” said one of the previously quoted people.

The company has ongoing projects in Mumbai, Bengaluru and Chennai and has delivered 13.5 million square feet of property projects to date, with 48 million square feet in various stages of development, it said on its website.

Ozone has three major township projects under construction across Chennai and Bengaluru.

The group now also plans to focus on developing large township projects of 140+ acres in Bengaluru, Chennai and Goa, and premium development in Mumbai.

The inherent strength of the residential market and the growing importance of owning a home are helping to maintain the growth momentum. With the upcoming holiday season, new home launches and sales are expected to see an uptick.

Residential sales in the nine months to September 2022 (Q1-Q3 of 2022) were 161,000 units, exceeding annual sales in years after 2014, according to JLL’s Residential Market Update – Q3 2022 Annual sales in 2014 were 165,791 units.

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Personal loan interest rates at near-record spread with credit cards, increasing opportunities for savings https://www.labougeotte.org/personal-loan-interest-rates-at-near-record-spread-with-credit-cards-increasing-opportunities-for-savings/ Wed, 02 Nov 2022 19:43:17 +0000 https://www.labougeotte.org/personal-loan-interest-rates-at-near-record-spread-with-credit-cards-increasing-opportunities-for-savings/ The interest rate on credit cards is much higher than personal loans, according to the Federal Reserve Bank of St. Louis. (iStock) As the Federal Reserve raises interest rates to reduce inflation, the impact of rate hikes can vary across different forms of debt. This disparity has led to a near-record gap between interest rates […]]]>

The interest rate on credit cards is much higher than personal loans, according to the Federal Reserve Bank of St. Louis. (iStock)

As the Federal Reserve raises interest rates to reduce inflation, the impact of rate hikes can vary across different forms of debt. This disparity has led to a near-record gap between interest rates on personal loans and credit cards, according to the Federal Reserve Bank of St. Louis.

The average interest rate on credit cards was 16.27% in August, while the average interest rate on personal loans was 10.16%, according to the latest data.

This is one of the largest spreads between commercial bank interest rates on credit card plans and 24-month personal loans in the St. Louis Fed’s recorded history.

The news comes as Americans are holding large amounts of credit card debt. Credit card balances rose by $46 billion in the second quarter of 2022, marking the largest quarterly increase in more than two decades, according to the Federal Reserve Bank of New York.

Plus, half of Americans have fallen behind on their credit card debt amid high inflation, a poll has found.

If you have high-interest credit card debt, you can consider paying it off with a personal loan at a lower interest rate, which will save you money each month. You can visit Credible to compare different personal lenders and rates without affecting your credit score.

PERSONAL LOAN INTEREST RATES CONTINUE DROP FOR 5-YEAR FIXED-RATE LOANS

Credit card interest rates rise to record high

The average credit card interest rate in August, at 16.27%, is the highest in the history of the St. Louis Fed report, which dates back to November 1994.

This is notable, in part, because having a higher interest rate on outstanding credit card balances can significantly inflate your total debt.

Total US household debt has also increased of late, rising by $312 billion to $16.15 trillion in the second quarter of 2022, according to the New York Fed report. Total household debt includes items such as credit cards, mortgages and student loans.

“The second quarter of 2022 showed large increases in mortgage, auto loan and credit card balances, in part due to rising prices,” said Joelle Scally, administrator of the Center for Microeconomic Data at the New York Fed.

If you’re struggling with unpaid debt, you can consolidate it with a personal loan at a lower interest rate. To find out if a debt consolidation loan is right for you, you can talk to a personal loan expert at Credible and get all your questions answered.

MANY STUDENTS WITH CREDIT CARDS HAVE DEBTS, SURVEY SAYS

The Fed may continue to raise interest rates in 2023 to reduce inflation

Inflation rose 8.2% year over year in September, according to the Bureau of Labor Statistics (BLS) – far from the Fed’s 2% inflation target.

To slow inflation, the Fed could continue to raise rates in 2022 and 2023. This decision may affect the interest rates of several financial products. For example, the average interest rate on a 24-month personal loan rose slightly to 10.16% in August from 8.73% in May.

If you want to take advantage of current interest rates before they rise, you might consider using a personal loan to consolidate your debt at a lower rate. Visit Credible Marketplace to compare personal lenders without affecting your credit score.

AVERAGE MILLENNIAL OWES MORE THAN $100,000 IN NON-MORTGAGE DEBT: SURVEY

Do you have a financial question, but you don’t know who to contact? Email The Credible Money Expert at moneyexpert@credible.com and your question may be answered by Credible in our Money Expert section.

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Rising interest rates curb mortgage growth https://www.labougeotte.org/rising-interest-rates-curb-mortgage-growth/ Mon, 31 Oct 2022 13:01:00 +0000 https://www.labougeotte.org/rising-interest-rates-curb-mortgage-growth/ As the Reserve Bank prepares to raise interest rates again to rein in the highest inflation in decades, loan growth in the $2 trillion mortgage market shows signs of slowing and the analysts say the slowdown in lending will continue. New figures from the RBA, released on Monday, showed that growth in mortgage credit – […]]]>

As the Reserve Bank prepares to raise interest rates again to rein in the highest inflation in decades, loan growth in the $2 trillion mortgage market shows signs of slowing and the analysts say the slowdown in lending will continue.

New figures from the RBA, released on Monday, showed that growth in mortgage credit – a key long-term influence on bank profits – slowed to a 10-month low of 7.3% on the year to in September, against 7.6% a month earlier.

Mortgage growth is slowing and analysts believe the trend still has a long way to go.Credit:Peter Rae

While the RBA is expected to raise the cash rate by at least 0.25 percentage points on Tuesday, analysts say it is still early in the downturn in mortgage lending, which came as oil prices real estate plummeted and banks reduced the amount they would lend.

Westpac chief economist Andrew Hanlan said the RBA figures further confirmed the slowdown in credit due to higher interest rates, saying overall credit growth of 0.7% in September was the weakest monthly reading since March. Hanlan said while borrowing rose sharply in 2021 and early 2022, that trend is now reversing as interest rates rise.

“The RBA is rapidly removing ultra-loose monetary policy, on the way to a restrictive stance, to combat a significant inflation challenge. Policy tightening will reduce demand for credit – from households and, therefore, businesses,” he said in a note.

“The housing market is showing the adverse effects of the sharp rise in interest rates.”

Some investment houses such as Jarden expect annual housing credit growth to fall to around a third of its current rate by the end of the year, while Commonwealth Bank said it expects housing credit growth to slow to 4% next year.

Despite the expected slowdown, investors remain bullish on big banks as lenders benefit from a dramatic widening in net interest margins, which compare funding costs to the price of loans. Lenders also report low levels of borrower stress.

White Funds Management chief executive Angus Gluskie said over the next year banks would fully benefit from higher interest rates on their loan portfolios and the majority of bank customers could bear it. higher interest rates.

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Inflation Relief Checks by State, Live Online: Student Loan Forgiveness, 401k Limit Increase and SSA Payment | California, Florida… https://www.labougeotte.org/inflation-relief-checks-by-state-live-online-student-loan-forgiveness-401k-limit-increase-and-ssa-payment-california-florida/ Fri, 28 Oct 2022 02:06:16 +0000 https://www.labougeotte.org/inflation-relief-checks-by-state-live-online-student-loan-forgiveness-401k-limit-increase-and-ssa-payment-california-florida/ Biden to warn in Syracuse speech that GOP will exacerbate inflation President Biden will pit his economic plan against that of the Republicans on Thursdayin a last-ditch effort to convince midterm voters that Democrats are best equipped to fight inflation and create jobs. Biden will travel to Syracuse, New York, where Micron Technology plans to […]]]>

Biden to warn in Syracuse speech that GOP will exacerbate inflation

President Biden will pit his economic plan against that of the Republicans on Thursdayin a last-ditch effort to convince midterm voters that Democrats are best equipped to fight inflation and create jobs.

Biden will travel to Syracuse, New York, where Micron Technology plans to invest up to $100 billion in computer chip manufacturing, part of tens of billions in new factory spending announced after Biden signed the law CHIPS subsidizing the industry in August.

In Syracuse, Biden will tout efforts to bring manufacturing jobs back to upstate New York, and contrast those policies with what he called the Republicans’ “mega-‘MAGA’ trickle-down agenda.”

The slogan references Donald Trump’s “Make America Great Again” movement and the former Republican president’s focus on tax cuts that Democrats say have failed to “trickle down” to people. low-income citizens.

Senior administration officials said that Biden will argue that Republican economic plans benefit the wealthy and raise inflation. Earlier this week, he warned Republicans would cause “chaos” in the world’s biggest economy.

Some Republicans have pledged to use the legal borrowing limit or debt ceiling in the United States to force through federal spending cuts, expand Trump’s tax cuts, repeal Democratic-enacted price-cutting laws prescription drugs and block Biden’s student debt relief plan.

(Reuters)

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Guide to the First Home Loan Deposit Program – Forbes Advisor Australia https://www.labougeotte.org/guide-to-the-first-home-loan-deposit-program-forbes-advisor-australia/ Tue, 25 Oct 2022 13:58:03 +0000 https://www.labougeotte.org/guide-to-the-first-home-loan-deposit-program-forbes-advisor-australia/ The First-Time Home Guarantee program is designed to help eligible buyers own their first home faster. It does this by allowing a buyer to purchase a home with as low as 5% down payment without having to pay for mortgage insurance from lenders. It was introduced by the federal government in 2019 and it is […]]]>

The First-Time Home Guarantee program is designed to help eligible buyers own their first home faster.

It does this by allowing a buyer to purchase a home with as low as 5% down payment without having to pay for mortgage insurance from lenders. It was introduced by the federal government in 2019 and it is administered by the National Housing Finance and Investment Corporation (NHFIC). As property prices plummet in our capitals, housing remains largely unaffordable for many young people.

It was previously called the First Home Loan Deposit Scheme (which many people still call it) but was renamed in the 2022 federal budget. The number of places available each fiscal year has also increased from 10,000 to 35,000. name incorporates all of the different schemes available to first-time home buyers, rather than having different names for what was essentially the same support scheme.

How it works?

The First Home Warranty Program allows eligible first-time home buyers to purchase a home at a certain price with just a 5% down payment. The National Housing Finance and Investment Corporation (NHFIC) guarantees up to 15% of the value of property financed by a participating lender. Usually, without a deposit of 20% of the value of the property, mortgage insurance must be purchased and this is a significant additional expense.

“The good thing about the First Home Guarantee is that eligible borrowers can use it in conjunction with other government programs, like the First Home Super Saver Scheme or state and territory First Home Owner Grants. and stamp duty concessions,” says Dr Diaswati Mardiasmo, National Research Manager at PRD Nationwide.

“That said, it’s important to note that collateral is not a cash payment or down payment for your home loan.”

Eligibility criteria

A number of conditions must be met to benefit from the scheme.

Price limits

The value of the residential property must not exceed the price caps that have been set by your state or local government. In New South Wales, where real estate is the most expensive, the cap is set at $900,000. In more affordable states like Tasmania, the maximum price is $450,000.

“Price caps serve as a cap — the maximum price you can expect,” Mardiasmo explains. “That doesn’t mean you have to go all out. If you are able to find a property that is inferior, it will serve well in terms of the amount of debt incurred.

Mardiasmo also notes that the caps represent the total value of the property. Buyers who buy a house and land package should be particularly careful of this, as they risk having their application rejected if the price of both exceeds the maximum limit.

“Sometimes buyers can be caught off guard with variations in building contracts if they buy land and then have a separate contract to build a house,” Mardiasmo says. “They might also be caught off guard if they buy a house and land package, where the total cost can vary, depending on your choice of inclusions.”

Buyers of these types of properties will have to sign a fixed price construction contract.

In addition to the First Home Guarantee, there is also a Regional Guarantee for the Acquisition of a First Home and a Family Home Guarantee for single parents with at least one dependent child. You can learn more about the price limits via this table.

Property type

There is also some flexibility in terms of the type of property purchased, but it is essential that the property in question is residential. In other words, the plaintiffs will become the owner-occupiers. Investment properties are excluded from the regime.

Eligible residential properties include:

  • an existing house, townhouse or apartment
  • a house and land complex
  • land and a separate contract for the construction of a house
  • an off-plan apartment or townhouse

Relationship status

Singles and couples can benefit from the scheme. Single applicants whose taxable income does not exceed $125,000 per year for the previous fiscal year are eligible, while a couple’s total income is $200,000 per year.

“It is essential to remember that couples are only eligible for the First Home Guarantee if they are married or in a common-law relationship,” says Mardiasmo. “Other people buying together, including siblings, a parent and child or friends, are not eligible.”

The program was expanded in the most recent budget to provide specific support for single parents. There are now 10,000 family home guarantees available to eligible single parents with at least one dependent child who have a down payment of just 2%.

Loan requirements

Loans under the First Home Guarantee require scheduled repayments of loan principal and interest for the duration of the agreement.

There are limited exceptions for interest-only loans, which primarily relate to construction loans.

Salary thresholds

A single person is eligible if they earn $125,000 per year or less, as is a couple earning $200,000 combined. This should be shown on the tax notice issued by the Australian Taxation Office.

Deposit size

To be eligible for the program, the minimum deposit amount is 5% of the total price of the property. A single parent with children can have a 2% deposit. The maximum allowable deposit size is 20%.

How to register

Additional eligibility criteria include:

  • Applicant must be an Australian citizen – permanent residents are not eligible
  • At least 18 years old

Participating lenders

The NHFIC has authorized a panel of 32 participating lenders to offer the program. The main bank lenders are Commonwealth Bank and NAB, while some of the other lenders include Auswide Bank, Australian Military Bank, Bank Australia, Police Bank, Regional Australia Bank and Indigenous Business Australia.

New home warranty

The program was temporarily extended during the COVID-induced recession of 2020 and 2021 to include new homes. It worked the same way, but, as the name suggests, it was restricted to new home buyers only. It has since been liquidated.

Things to consider before applying…

A mortgage is a long-term commitment. Are you able to make regular repayments for many years or are you considering changing your work habits?

Don’t accept the maximum size of your mortgage without thinking about the impact this level of debt might have on you. Mortgage stress is affecting increasing numbers of Australians due to rising interest rates. Almost a million Australians are now suffering from mortgage stress.

“The program allows people to take on higher levels of debt at a time when house price growth is quite inflated due to a lack of supply,” says Mardiasmo.

“One way to mitigate risk is to ask yourself: Should I be considering a property right now? Just because you can get a mortgage with as little as a 2-5% down payment doesn’t mean you should do it.

FAQs

When does the surety scheme for the first home loan end?

The current plan period runs from July 1, 2022 until the last day of the fiscal year, June 30, 2023.

What deposit do I need?

What is the income test?

Is the new home warranty still available?

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