Fixed rate – Bobs Birdhouse http://bobsbirdhouse.com/ Mon, 10 Jan 2022 12:02:12 +0000 en-US hourly 1 https://wordpress.org/?v=5.8 https://bobsbirdhouse.com/wp-content/uploads/2021/06/cropped-icon-32x32.png Fixed rate – Bobs Birdhouse http://bobsbirdhouse.com/ 32 32 Why inflation can be good for ordinary Americans and bad for the rich https://bobsbirdhouse.com/why-inflation-can-be-good-for-ordinary-americans-and-bad-for-the-rich/ Mon, 10 Jan 2022 11:40:00 +0000 https://bobsbirdhouse.com/why-inflation-can-be-good-for-ordinary-americans-and-bad-for-the-rich/ But overall, inflation can actually be a good thing for many working-class Americans, especially those with fixed rate debt like a 30-year mortgage. This is because wages go up, which not only empowers workers, but also gives them more money to pay off their debts. In addition, in the case of a mortgage loan, your […]]]>

But overall, inflation can actually be a good thing for many working-class Americans, especially those with fixed rate debt like a 30-year mortgage. This is because wages go up, which not only empowers workers, but also gives them more money to pay off their debts. In addition, in the case of a mortgage loan, your monthly payment will be the same but your house will increase in value.

And many of the people who take a bath when prices rise are high net worth individuals who own the vast majority of government bonds.

The problem is, you aren’t going to feel the rise immediately.

“There’s light at the end of the tunnel, it’s just that it might take a few years,” said Kent Smetters, professor of business economics at the Wharton School of Business.

How inflation favors debtors

The immediate benefits of inflation for ordinary people are less tangible than the drawbacks – you feel the sting of your grocery bill and the punch of filling your gas tank. Less palpable but still significant is the ever lower weight of your debt.

“If you borrow at a fixed rate, like a 30-year mortgage, you earn as inflation rises,” says Smetters. “We often think of a 30-year mortgage as a hedge against inflation.”

In other words, the cost of your mortgage remains stable, while the amount of money you have to pay for it increases. It’s not a perfectly timed event, of course: Wages don’t immediately increase with inflation, but they end up doing it, Smetters said.

Mortgages, the vast majority of which are 30-year fixed rate loans, account for nearly $ 11 trillion of the current record debt of US $ 15 trillion. Meanwhile, wages rise with prices, essentially reducing the real value of that debt. The same inflation benefit applies to anyone repaying federal student loans, which also have a fixed interest rate. As your income increases, you basically get a reduction on what you owe back.
Wage growth has so far generally not kept up with price increases, but analysts believe that could change in the new year as shipping bottlenecks begin to ease. .
Key inflation measure peaked in 31 years in October

Household incomes have been supported by government transfers such as stimulus payments and unemployment benefits. In the first eight months of 2021, personal income – which includes salaries earned and government payments – was 15% higher than it was in 2019, says Daniel Alpert, managing partner of Westwood Capital.

“It’s hundreds of billions of dollars … and it was already adding to a very high accumulated savings by households, which resulted from the fact that they had nothing to spend it on because everyone in 2020 was shut in.”

Losers of inflation

Of course, not all debt goes down with inflation. Credit card interest rates, which are largely not fixed, have soared this year to an average of 17.13%, just below the all-time high of 17.14% reached in 2019, according to the Federal Reserve. And anyone living on a fixed income, like retirees, who doesn’t benefit from the pay increases that working people see, feel additional pain as prices rise.
Inflation is not going to go away.  Here's how to make money with it

Another affected group is those exposed to government bonds – think of households with over $ 1 million who typically invest in both stocks and debt.

“Who are the ones going to be hurt by holding a lot of 10-year or even 30-year bonds? These are usually high-income households,” says Smetters. So they will lose with higher inflation. “

This is because those bondholders, who basically lend money to the government, will be paid back in money that has less purchasing power.

“We just don’t know which end is in place”

However, inflation has a sticky psychological side that makes it difficult to clearly define who wins and who loses. Because even though wages are rising and job growth is strong, Americans are disappointed with the state of the economy.

The consumer confidence index fell to a decade-long low in early November, according to data collected by the University of Michigan.

“The November fallout is named after inflation,” Wells Fargo economists said in a recent memo.

How does inflation affect my standard of living?

One in four respondents said inflation had made their standard of living worse. And half said they expected inflation to wipe out the wage gains they had been awarded over the past year.

“My feeling is that people are exhausted from the level of chaos we have, and inflation is a symptom,” said Wendy Edelberg, senior economics researcher at the Brookings Institution. “So we have the booming economy, but for how long is it going to grow, and for whom is it going to grow? And is it growing in a healthy way? is it increasing in an unhealthy way? “

Edelberg concluded: “Inflation looks like really hard evidence that we just don’t know what end is in place.”

– Anneken Tappe of CNN Business contributed to this article.


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Fixed Income Hits New High on NSE https://bobsbirdhouse.com/fixed-income-hits-new-high-on-nse/ Sat, 08 Jan 2022 13:38:30 +0000 https://bobsbirdhouse.com/fixed-income-hits-new-high-on-nse/ By ANTHONY KITIMO By CHARLES MWANIKI The shift to fixed income investments during the Covid-19 pandemic took bond trading on the Nairobi Stock Exchange to a record $ 8.37 billion last year, nearly seven times the value of shares traded on the stock exchange. Retail and institutional investors are looking for the higher guaranteed returns […]]]>

By ANTHONY KITIMO

By CHARLES MWANIKI

The shift to fixed income investments during the Covid-19 pandemic took bond trading on the Nairobi Stock Exchange to a record $ 8.37 billion last year, nearly seven times the value of shares traded on the stock exchange.

Retail and institutional investors are looking for the higher guaranteed returns available for government securities, as earnings from other asset classes such as stocks and cash deposits remain low.

The government’s great appetite for debt has also fueled additional trading activity on bonds with the high number of issues entering the market, raising concerns that the private sector will be deprived of credit.

Over the past year, the Treasury sold a net $ 6.76 billion in new bonds which were then actively traded on the exchange.

“The bond market exceeded the 2020 figures by 38.44% to 8.37 billion dollars against 6.05 billion dollars recorded in 2020; this is a record of commercial activity recorded. Stock turnover fell 7.58% to $ 1.2 billion from $ 1.29 billion the year before, ”the NSE said.

The increased bond turnover has generated more commissions for the trader and brokers who handle debt securities transactions. The bond market was also seen as a haven for investor liquidity after the pandemic hit the country and contracted the economy by 0.3% in 2020.

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Increase in assets

Retail government bond traders – including Saccos, listed and private companies, self-help groups, educational institutions, religious institutions and individuals – increased their holdings of securities by $ 867.7 million. dollars to $ 2.17 billion during the year.

However, stocks have become riskier and less attractive to investors as listed companies recorded declining profits and cut dividend payouts in order to preserve their liquidity in a difficult operating environment.

The equity market has struggled to break free from the downward race that has kept prices relatively low since early 2015.

While the bond market has set new records for annual volume traded in each of the past four years, the record annual turnover for stocks remains the $ 1.88 billion traded in 2014.

At the same time, money market funds continued to outperform all other asset classes in 2021, for the second year in a row, due to their higher returns.

During the period under review, the Cytonn Money Market Fund recorded the highest effective annual return of 10.5%, compared to an industry average of 8.8%.

Notably, the other asset classes recorded improvements compared to 2020, with the NASI being the biggest winner having increased by 14.1 percentage points for a return of 5.5% after falling 8.6% in 2020, with investors looking to take advantage of the rally in stock prices from last year. low. In addition, the gradual economic recovery after the reopening of the economy has contributed to the improvement.

In 2021, demand for treasury bill auctions was relatively low, with the average subscription rate standing at 94.1%, down from the 130.9% subscription rate recorded in 2020.

This is because investors have turned to the bond market in search of higher yields. On the other hand, the primary auctions of Treasury bonds in 2021 were in great demand, with an average subscription rate of 147.6%, higher than the average subscription rate of 130.6% recorded in 2020, partly due to because of the ample liquidity of the money market. .

The market preferred medium-term bonds, with the aim of hedging against duration risk.

“We expect the economic recovery seen in 2021 to continue into 2022. In addition, we expect the interest rate environment to remain stable as the government continues to reject expensive bids in the auction market in an attempt to keep rates low. ” said Stellah Swakei, research and investment assistant at Cytonn Investments.

In 2021, the Kenyan stock market advanced with the NASI, NSE 25 and NSE 20 increasing by 9.5%, 9.8% and 1.6% respectively.

The performance of the equity market over the year was shaped by gains from stocks such as Equity Group, ABSA Bank Kenya, British American Tobacco Kenya (BAT), Kenya Commercial Bank (KCB) and Safaricom Plc. Gains were, however, weighed down by losses at bank stocks such as Diamond Trust Bank Kenya (DTB-K), Standard Chartered Bank (SCBK) and NCBA Bank.


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Unemployment claims in the United States increase by 7,000; Rising mortgage rates in the United States https://bobsbirdhouse.com/unemployment-claims-in-the-united-states-increase-by-7000-rising-mortgage-rates-in-the-united-states/ Thu, 06 Jan 2022 22:00:49 +0000 https://bobsbirdhouse.com/unemployment-claims-in-the-united-states-increase-by-7000-rising-mortgage-rates-in-the-united-states/ The number of Americans claiming unemployment benefits rose last week but remained at historically low levels, suggesting the job market remains strong. Unemployment claims in the United States rose by 7,000 last week to 207,000. The four-week claims average, which dampens week-over-week gyrations, rose nearly 4,800 to reach just under 205,000. Despite the increases, figures […]]]>

The number of Americans claiming unemployment benefits rose last week but remained at historically low levels, suggesting the job market remains strong.

Unemployment claims in the United States rose by 7,000 last week to 207,000. The four-week claims average, which dampens week-over-week gyrations, rose nearly 4,800 to reach just under 205,000. Despite the increases, figures show weekly claims are lower than the typical 220,000 before the pandemic hits the US economy in March 2020.

The highly transferable variant of the omicron does not appear to have triggered any significant layoffs so far.

In total, nearly 1.8 million Americans were on traditional unemployment assistance during the week ending December 25.

“Assuming omicron-related layoffs are limited amid a tight labor market, we would expect initial claims to continue to hover around the (200,000) mark,” said Nancy Vanden Houten, economist chief at Oxford Economics.

Rising mortgage rates in the United States

Average long-term mortgage rates in the United States have risen over the past week to start the new year. They reached their highest level since May 2020, at the height of the coronavirus pandemic, while remaining historically low.

Mortgage buyer Freddie Mac reported Thursday that the 30-year average benchmark home loan rate rose to 3.22% this week from 3.11% last week. A year ago, the 30-year rate stood at 2.65%.

The average rate on 15-year fixed-rate mortgages, popular among those refinancing their homes, fell to 2.43% from 2.33% last week.

Many economists expect mortgage rates to rise this year after the Federal Reserve announced last month that it would start cutting its monthly bond purchases to contain inflation. But even with the three rate hikes expected in 2022, the Fed’s benchmark rate would remain below 1%.


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Record Sales and Prices Close Colorado Springs Real Estate Market in 2021 | Subscriber content https://bobsbirdhouse.com/record-sales-and-prices-close-colorado-springs-real-estate-market-in-2021-subscriber-content/ Tue, 04 Jan 2022 22:30:00 +0000 https://bobsbirdhouse.com/record-sales-and-prices-close-colorado-springs-real-estate-market-in-2021-subscriber-content/ Last year was another record for home sales and prices in the Colorado Springs area as lower mortgage rates and the desire for home ownership continued to fuel a furious demand for housing. local. Sales of single-family homes and patio homes totaled 18,159 in 2021, surpassing the previous year’s record of 17,337, according to a […]]]>

Last year was another record for home sales and prices in the Colorado Springs area as lower mortgage rates and the desire for home ownership continued to fuel a furious demand for housing. local.

Sales of single-family homes and patio homes totaled 18,159 in 2021, surpassing the previous year’s record of 17,337, according to a December market trends report released Tuesday by the Pikes Peak Association of Realtors.

“It’s incredibly strong,” Joe Clement, broker-owner of Re / Max Properties in Colorado Springs, said of the local market. “I look at this graph and it shows that 18,159 addresses were sold through the (Multiple Listing Service) in 2021. That’s the highest number ever.”

Colorado Springs will once again be one of the top housing markets in the United States in 2022, according to forecasts

But strong demand has also led to sharp price increases. In December, the median price of homes sold during the month rose 18.4% to $ 450,000 from the same month a year earlier, according to the Realtors Association report. The December median equaled the region’s record price, first set in June.

Local median prices have now risen year over year every month since December 2014, the Gazette’s historical data shows – a seven-year streak. Additionally, year-over-year prices have increased in double-digit percentages for 18 consecutive months, dating back to July 2020.

Mortgage rates continue to boost interest in housing, industry experts have said.

Thirty-year fixed rate loans hit a national average of 3.11% last week, and weekly rates have passed the 3% mark almost every week since mid-October, according to mortgage buyer Freddie Mac.

Despite this increase, rates around 3% remain historically low and attractive to buyers.

How low? Twenty years ago, long-term, fixed-rate mortgages averaged over 7% in the last week of 2001, according to figures from Freddie Mac. Forty years ago, at the end of 1981, 30-year fixed-rate mortgages averaged just over 17%.

But it wasn’t just demand that drove prices up.

Colorado Springs continues to struggle with a shortage of homes for sale, an issue that has plagued the Pikes Peak area and other markets for two to three years.

Colorado Springs home prices jump nearly 25%, report says

In December, the supply of Colorado Springs area homes listed for sale at the end of the month totaled just 659, a roughly two-week supply based on the number of properties available and the pace of recent sales, according to the report of the Association of Real Estate Agents.

On the one hand, December listings are up nearly 25% from the same month in 2020. And yet December inventories have steadily exceeded 2,000 and even 3,000 in the years leading up to the Great Recession. .

The housing shortage and continued demand have led to bidding wars among buyers, many of whom are submitting bids that are several thousand dollars above the seller’s asking price.

The market has been a boon for sellers, but a source of overwhelming disappointment for many buyers who can’t find a home to buy, estate agents in the area have said.

And don’t expect those trends to change in 2022, Clement said.

29 Comings and Goings Around Colorado Springs: A Better Year for Shops and Restaurants in 2021

The region needs more newly built homes to hit the market to help increase the overall supply and slow the rise in prices, he said. He is not optimistic that the shortage will ease anytime soon.

“It’s the same problem we’ve had for the last couple of years: it’s inventory,” Clement said. “I don’t see how we can all of a sudden get away with it unless they (home builders and developers) start getting development plans approved in two weeks or something and they can get started. building like crazy and trying to catch up. But it doesn’t. It’s not going to happen. “

The Real Estate Agents Association market trends report tracks sales of homes managed by its member agents; it does not include homes sold by individuals. Most home sales take place in El Paso County, the remainder in Teller and a handful of Front Range counties.


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How to fix the Irish mortgage market https://bobsbirdhouse.com/how-to-fix-the-irish-mortgage-market/ Sun, 02 Jan 2022 17:14:00 +0000 https://bobsbirdhouse.com/how-to-fix-the-irish-mortgage-market/ With mortgage completions to end 2021 at 10.5 billion euros and expected to reach 14 billion euros in 2023 and 17 billion euros in 2025, one might suggest that there is nothing wrong with the mortgage market, but there are a number of things that need to be changed and revised. The Central Bank is […]]]>

With mortgage completions to end 2021 at 10.5 billion euros and expected to reach 14 billion euros in 2023 and 17 billion euros in 2025, one might suggest that there is nothing wrong with the mortgage market, but there are a number of things that need to be changed and revised.

The Central Bank is currently engaged in a consultation process to review the rules introduced in 2015. Only, in a global context, we have LTI (loan to Income) and LTV (loan to value) thresholds which apply which do not apply. have not been modified since their presentation in 2015.

A “revolution” occurred in our market in October when two lenders, Avant Money and Finance Ireland, introduced 15-30 year fixed rate mortgages at less than 3%. The introduction of these long-term fixed rates dispels the central bank’s fear of making adjustments to the rigid LTI and LTV rules. In fact, only the UK and Denmark out of the 27 EU countries apply this method to determine what you can borrow.

In the UK the LTI is 4.5 times the salary while in Denmark it is four times. We need to move to the DTI Debt / Income or Debt Service / Income DSTI Model.

As a simple example, a single person earning € 50,000 can get a maximum mortgage loan of € 175,000 under DTI rules, using 35% of their net income, the borrower can borrow € 210,000 and get a 30-year fixed rate of 3.1%. Using 40% of the net income gives a mortgage of 240,000 €. The Residential Tenancies Board reported in July that the average tenant pays 36% of their net income in rent.

Mortgage processing

All lenders struggled with service in 2021 and while there are signs that some lenders are improving, borrowers and brokers should get better service from their lenders. The problem is, all lenders have their own proprietary systems, and some haven’t changed in 20 years. You have the ridiculous situation of some lenders looking for pages and pages of documentation scanned for them to enter the information needed to start the mortgage underwriting process.

New lenders have more efficient systems, but old lenders are lagging behind. The days of lenders launching their own systems are long gone, shared services are the way to go.

Mortgage documents

With the advent of the Central Credit Register in July 2017 by the Central Bank, lenders have excellent credit information on potential borrowers. All lenders require six months of bank statements as part of the documentation to process a mortgage, why? It should be reduced to three months because, coupled with other supporting documents, the banks have more than sufficient information to assess the borrower’s ability to pay.

It is very encouraging to see that two of the new lenders in the market, Avant Money and ICS Mortgages, do not require mortgage or loan statements and Avant Money also do not require credit card statements, why ? Quite simply because the information is on the CCR. All lenders should take this approach. The service proposal must meet and respect borrowers and brokers. In 2021, that was not the case.

Compete on price and service, not on gimmicks

2022 must be the year when cashback incentives are withdrawn from the market. We know that they are worth 0.4% in terms of interest reduction for the consumer, or a saving of € 63 per month over 30 years on a mortgage of € 300,000 or € 22,680 over 30 years. Traditional lenders must compete on price and service.

Competetion

All markets need competition, just like ours. We are losing Ulster Bank and KBC, which held a 26% market share. While this creates new business opportunities for the eight existing lenders, three are owned by AIB. There is room for new players. Competition is healthy. The three new entrants to our market have the cheapest interest rates and do not offer cash back. Two of these lenders exclusively offer fixed rates for 15 to 30 years.

Michael Dowling of MD Dowling Financial is a leading mortgage and debt advisor


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Mortgage rate forecasts for January 2022 https://bobsbirdhouse.com/mortgage-rate-forecasts-for-january-2022/ Sat, 01 Jan 2022 05:10:15 +0000 https://bobsbirdhouse.com/mortgage-rate-forecasts-for-january-2022/ The page for another calendar year has turned and now is the time of year when we traditionally make resolutions to get in shape, eat healthier, or spend more time with friends and family. One more thing to add to your list: stop delaying and refinance your mortgage. This is because rates are expected to […]]]>

The page for another calendar year has turned and now is the time of year when we traditionally make resolutions to get in shape, eat healthier, or spend more time with friends and family.

One more thing to add to your list: stop delaying and refinance your mortgage. This is because rates are expected to rise from their all-time lows over the coming month and beyond. Where will the rates on the 30-year fixed-rate benchmark mortgage and its 15-year cousin land in January? Our experts intervene below.

Time goes down as mortgage rates rise

It was a whirlwind end to 2021, from pandemic to finance. Last month, the Fed suggested that several rate hikes were slated for 2022 to fight rising inflation. He signaled that starting this month, he would reduce his monthly purchases of Treasury securities and monthly mortgage-backed securities by $ 20 billion and $ 10 billion, respectively.

Coronavirus numbers continued to climb alarmingly amid reports of the spread of the omicron variant and lower than expected vaccination booster rates. And the Biden administration’s Build Back Better legislation suffered a potentially fatal setback.

All of these factors, and more, suggest a higher rate climate at the start of 2022.

“High inflation and the Fed’s gradual acceleration will push mortgage rates up in January. I expect the 30-year fixed mortgage rate to average 3.2% and the 15-year fixed mortgage rate to average 2.5% this month, ”said Nadia Evangelou, Senior Economist and director of forecasting for the National Association of Realtors.

Inflation recently hit its highest level since 1982, and history shows that rising inflation pushes up the 10-year Treasury yield.

“Higher inflation erodes the return an investor on a bond or loan holds over time, and bonds are no longer attractive to investors. This, in turn, lowers the value of bonds and increases yields, ”Evangelou said. “As a result, mortgage rates go up because they are tied to the yield on the 10-year Treasury.”

Additionally, the Fed reducing its purchases of bonds and mortgage-backed securities means that consumer mortgages currently sold to Fannie Mae and Freddie Mac will have to find other buyers – a strategy that will also contribute to a rise. mortgage rates.

Greg McBride, chief financial analyst at Bankrate, does not foresee any significant changes in mortgage rates. “With inflation high, mortgage rates could drift a bit higher in January,” says McBride, adding that he expects 30-year and 15-year rates to climb to 3.5% and 2.7%, respectively, on average this month.

Rick Sharga, executive vice president of RealtyTrac, on the other hand, doesn’t think mortgage rates will rise much more than their average in December.

“This is because market conditions are not expected to change significantly over the next 30 days. Thus, the rates for the 30-year fixed-rate loan will probably be around 3.1%, compared to 2.3% for the 15-year fixed-rate loan, ”explains Sharga.

First Quarter Mortgage Rate Forecast

Fannie Mae expects the 30-year benchmark fixed rate to be between 3.1% and 3.2% in the first quarter of 2022, while the Mortgage Bankers Association expects 3.3% to 4% and Freddie Mac between 3.4% and 3.5%.

“An upward trend in rates will likely continue for much of the first quarter of 2022, with a 30-year average rate between 3.25% and 3.5% and 15-year rates in the neighborhood of 2 , 5% to 2.8%, ”McBride said. “If there is a significant improvement in the supply chain and expectations of lower inflation, however, this could limit mortgage rates. But a wild card is the growing number of COVID cases. “

Evangelou expects the 30-year rate to average 3.3% versus 2.6% for the 15-year rate in the first three months of the year. “Mortgage rates will rise in the first quarter as the Fed will likely end its purchases of mortgage-backed securities by March. This means that the current economic stimulus policies will soon come to an end. In addition to doubling the pace of its decline, three rate hikes will follow later in 2022, likely starting in the middle of the year. “

Sharga envisions an average rate of 3.25% over 30 years by the middle of the year, reaching 3.5% by the end of the year. “A number of factors suggest rate hikes, including higher inflation and the Federal Reserve’s plans to accelerate the cut while increasing the federal funds rate two or three times over the coming year. While there is no direct correlation between the Fed Funds rate and mortgage rates, these Fed actions tend to set the tone for the overall credit environment. “

Nonetheless, global events – especially those influenced by the pandemic – could cause international investors to flight to the relative safety of U.S. Treasuries, driving down yields and preventing mortgage rates from rising.

“And if rising mortgage rates lead to lower home purchases, lenders could try to keep rates lower in order to boost lending volume,” Sharga said. “I still think it’s more likely that we will see a modest increase in mortgage rates during 2022, but as we’ve seen in recent years anything can happen.”

New year, new opportunities

The moral of the story? Lock in a low rate on a purchase or refi loan now if you feel financially secure.

“If you think you are financially prepared to own a home, you should probably move out ASAP. Home prices have risen 18-20% over the past year and are expected to continue rising in 2022, albeit at a slower pace, ”Sharga said. “Combined with even a modest hike in interest rates, this can make it difficult for buyers – especially first-time buyers – to be able to afford a home.”

Evangelou subscribes to this theory. “I see no reason not to buy or refinance at this time. Mortgage rates will continue to rise, ”she said.

However, don’t feel like you have to do something prematurely.

“If you find yourself reaching the limit of what you can afford, put up an offer without being seen or after only five minutes of visiting, or if you are forced to forgo a home inspection, you’d better to go away, ”says McBride. “There are worse things than staying where you are or renting for a year or two until you can buy in a more balanced and healthy market where you can do the necessary due diligence.”

Also zoom out from micro view to macro view for necessary context.

“Mortgage rates have reached or are approaching their historic lows in recent years. And even with a modest increase over the coming year, these rates will continue to be good deals, ”adds Sharga. “Borrowers should keep in mind that interest rates between 3 and 3.5% are also lower than the current inflation rate of 5.5%, which in itself is a powerful argument for buying a home. or get refinancing if you can afford it. “

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Graduates Can Save More Money Than Ever As Fixed Student Loan Refinance Rates Hit All-Time High https://bobsbirdhouse.com/graduates-can-save-more-money-than-ever-as-fixed-student-loan-refinance-rates-hit-all-time-high/ Thu, 30 Dec 2021 13:25:52 +0000 https://bobsbirdhouse.com/graduates-can-save-more-money-than-ever-as-fixed-student-loan-refinance-rates-hit-all-time-high/ Fixed student loan refinancing rates set a new record during the week of December 13, meaning borrowers have the ability to lower their monthly payments, pay off loans faster, and save more money. on their university debt. (iStock) Fixed student loan refinancing rates have fallen to a new high, giving borrowers the opportunity to save […]]]>

Fixed student loan refinancing rates set a new record during the week of December 13, meaning borrowers have the ability to lower their monthly payments, pay off loans faster, and save more money. on their university debt. (iStock)

Fixed student loan refinancing rates have fallen to a new high, giving borrowers the opportunity to save more money on their student debt than ever before.

Interest rates on the 10-year fixed-rate refinance loans were on average 3.33% for the week of Dec. 13, according to Credible. These are the lowest fixed student loan rates since Credible started collecting this data in June 2020.

STUDENT LOAN DEFERRED EXTENSION: WHAT BORROWERS NEED TO KNOW

The variable interest rates for the 5-year refinance term increased significantly in the same week, to 2.82%. However, the variable rate is much lower than it was at the same period last year, when it was 3.20% on average.

With student loan refinancing rates at historically low levels, student loan borrowers have the opportunity to lower their monthly payments, pay off debt faster, and save money on total borrowing costs on the bank. term of the loan.

Read on to learn more about refinancing a private student loan. Browse the student loan refinance rates from private lenders in the table below and visit Credible to see the refinancing deals that are right for you without affecting your credit score.

WHAT IS A GOOD ANNUAL PERCENTAGE RATE (APR) ON A PERSONAL LOAN?

How To Qualify For Student Loan Refinancing

Refinancing a student loan involves taking out a new loan to pay off your current student debt on better terms, such as a lower interest rate. There are many private student loan lenders that offer refinancing, and the process can be done entirely online.

When you refinance your student loan debt, your loan amount will stay the same, but your other terms will likely change. It may also be possible to transfer all of your loans in one monthly payment with the student loan consolidation. You can choose a shorter loan term to pay off your student debt faster, or you can go for a longer term loan to lower your monthly payments.

Private student lenders determine your interest rate based on a number of eligibility criteria, including:

  • Responsible financial history. Borrowers with good credit and a low debt-to-income ratio will have the best chance of qualifying for a student loan refinance at a low interest rate. Borrowers with bad credit might consider hiring a creditworthy co-signer to qualify for student loan refinancing.
  • Loan repayment terms. Larger loans may have higher interest rates. Plus, you will pay more interest over time because it is assessed on a higher amount. Shorter loans will generally offer lower interest rates, while longer loan terms will cost more to borrow over time.
  • Type of interest rate. Fixed rate loans tend to have higher rates because borrowers can lock in their rate for the duration of the loan. Variable rate loans tend to offer lower rates, which may go up or down over the life of the loan depending on market conditions.

You can compare student loan rates for free on Credible with flexible credit, then use a student loan calculator to determine how much you can save by refinancing.

HOW TO CHECK YOUR FULL CREDIT REPORT WITHOUT A HARD CREDIT

Should You Refinance Federal Student Loans?

Refinancing can help some borrowers get a lower rate on their college debt, but federal student loan borrowers need to know a few things before switching to a private loan.

Interest rates are set differently. Federal student loan rates are set for all borrowers based on when the loan was taken out, while private student loan interest rates vary by lender depending on the creditworthiness of the borrower. Additionally, private lenders tend to offer rate discounts, such as an interest rate reduction for setting up automatic payments (sometimes referred to as automatic remittance).

Borrowers with a high credit score and low debt-to-income ratio may qualify for a lower interest rate through a private lender, but this depends on the fixed rate of the federal student loan at the time the loan is due. been disbursed. Here are the current federal student loan interest rates for loans disbursed between July 1, 2021 and June 30, 2022:

  • Direct Undergraduate Loans: 3.73%
  • Direct loans to graduates: 5.28%
  • Direct PLUS loans for parents and graduates: 6.28%

WHAT IS THE MINIMUM CREDIT SCORE REQUIRED TO OBTAIN A STUDENT LOAN?

Private student loan lenders do not charge refinancing fees. When you borrowed your federal loan, you probably had to pay a one-time loan fee that was part of the total loan amount. Federal direct loans disbursed on or after October 1, 2020 were charged a loan fee of 1.057%. Direct PLUS loans disbursed during the same period have a loan fee of 4.228%

Private student loans are not eligible for federal benefits. By refinancing a private student loan, federal student loan borrowers forgo several federal loan protections such as income-based repayment plans, administrative forbearance, and certain student loan cancellation programs. Federal student loan payments are currently on hold until May 1, 2022, which means refinancing your federal loans to a private loan would now mean you will have to resume monthly payments upon approval.

Nonetheless, it might be wise to lock in a private student loan refinance rate when rates are at record highs. Visit Credible to view your student loan refinance offers, so you can determine if it is worth refinancing your federal student loan debt.

PERSONAL LOANS ORIGINATION COSTS: ARE THEY WORTH THE COST?

Have a finance-related question, but you don’t know who to ask? Email the Credible Money Expert at moneyexpert@credible.com and your question could be answered by Credible in our Money Expert column.


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US Home Prices Rise 18.4% After Last Year’s COVID-Fueled Recession | [BN] Homepage https://bobsbirdhouse.com/us-home-prices-rise-18-4-after-last-years-covid-fueled-recession-bn-homepage/ Tue, 28 Dec 2021 19:30:00 +0000 https://bobsbirdhouse.com/us-home-prices-rise-18-4-after-last-years-covid-fueled-recession-bn-homepage/ A home sale sign is displayed outside a new home construction site in Northbrook, Ill. On Wednesday, June 23, 2021. US home prices rose sharply in September, another sign of the market. housing is booming in the wake of last year’s coronavirus recession. Nam Y. Huh – staff, AP By PAUL WISEMAN AP Economics Writer […]]]>





A home sale sign is displayed outside a new home construction site in Northbrook, Ill. On Wednesday, June 23, 2021. US home prices rose sharply in September, another sign of the market. housing is booming in the wake of last year’s coronavirus recession.


Nam Y. Huh – staff, AP


By PAUL WISEMAN AP Economics Writer

Home prices in the United States rose again in October as the housing market continues to grow following last year’s coronavirus recession. The S&P CoreLogic Case-Shiller Home Price Index in 20 cities, released on Tuesday, was up 18.4% in October from a year earlier. The gain marked a slight deceleration from a 19.1% year-over-year increase in September, but was roughly in line with what economists expected. wins. The hottest markets were Phoenix (up 32.3%), Tampa (28.1%) and Miami (25.7%). Minneapolis and Chicago posted the smallest increases, 11.5% each. The housing market has been strong thanks to the lowest mortgage rates, a limited supply of housing in the market and pent-up demand from consumers stranded by the pandemic last year. Many Americans, tired of being locked in their homes during the pandemic, are looking to move from apartments to houses or larger homes. Last week, mortgage rates fell to 3.05% for the 30-year benchmark, fixed rate and 2.66%. for mortgage at a fixed rate over 15 years. The consistently low rates indicate that credit markets seem more concerned with the Omicron variant depressing economic growth than with the highest inflation rates in nearly 40 years. The National Association of Realtors reported last week that sales of previously occupied homes increased for the third consecutive month in November at a seasonally adjusted annual rate of 6.46 million. Additional reports by The Associated Press.



WASHINGTON (AP) – Home prices in the United States rose again in October as the housing market continues to grow following last year’s coronavirus recession.

The S&P CoreLogic Case-Shiller Home Price Index in 20 cities, released on Tuesday, was up 18.4% in October from a year earlier. The gain marked a slight deceleration from a 19.1% year-over-year increase in September, but was roughly in line with what economists expected.

All 20 cities posted double-digit annual gains. The hottest markets were Phoenix (up 32.3%), Tampa (28.1%) and Miami (25.7%). Minneapolis and Chicago posted the smallest increases, 11.5% each.

The housing market has been strong thanks to the lowest mortgage rates, a limited supply of housing in the market and pent-up demand from consumers stranded by the pandemic last year. Many Americans, tired of being locked in their homes during the pandemic, are looking to move from apartments to houses or larger homes.

“Home price growth will slow down further over the coming year, but will continue to increase,” said Danielle Hale, chief economist at Realtor.com. “As housing costs occupy a larger share of homebuyers’ paycheques, buyers will get creative. Many will take advantage of the continued flexibility of their workplace to relocate to the suburbs where, despite increases in house prices, many may still find a price per square foot lower than the surrounding area. cities. “


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CBSL unveils an indefinite term SLDB offer for expats and currency holders https://bobsbirdhouse.com/cbsl-unveils-an-indefinite-term-sldb-offer-for-expats-and-currency-holders/ Sun, 26 Dec 2021 22:47:40 +0000 https://bobsbirdhouse.com/cbsl-unveils-an-indefinite-term-sldb-offer-for-expats-and-currency-holders/ Governor of the Central Bank Nivard Cabraal The term varies from 3 months to 5 years with a fixed interest rate payable semi-annually Minimum investment is $ 1,000 $ 1 billion in SLDB maturing by March 2022 and $ 400 million more thereafter; 88.9% held by national banks SLDBs valued at $ 607 maturing in […]]]>

Governor of the Central Bank Nivard Cabraal


  • The term varies from 3 months to 5 years with a fixed interest rate payable semi-annually
  • Minimum investment is $ 1,000
  • $ 1 billion in SLDB maturing by March 2022 and $ 400 million more thereafter; 88.9% held by national banks
  • SLDBs valued at $ 607 maturing in 2023 and an additional $ 206 million in 2024
  • Total SLDB stock at end of November at $ 2.3 billion

The Central Bank on Friday announced a one-of-a-kind open offering of Sri Lanka Development Bonds (SLDBs) maturing in the next five years, targeting Lankan expatriates and other currency holders.

The unique initiative is to increase foreign currency inflows and reserves and in response to the demands of Lankan expatriates during the multiple CBSL tours organized in the Middle East as well as others elsewhere.

The terms of SLDBs range from three months to five years and offer a fixed interest rate semi-annually (see table). The minimum investment is $ 1,000 and multiples of $ 1,000 from there.

CBSL sources said there had been demands for an open, multiple-choice opportunity and that investors would choose based on their attractiveness and risk threshold. The fixed rate for a remaining three-month SLDB maturity (as of December 23, 2021) is 5% while the five-year instrument offers 7%.

“This offer will not involve an increase in government borrowing,” CBSL officials said, adding that if the offer elicited a good response, CBSL would be able to reduce its holdings of treasury bills and government bonds.

The open-ended offer is aimed specifically at recipients of goods and services export products and other currency holders, including Sri Lankans working abroad. The investment window will not be facilitated during an ongoing SLDB auction, that is to say from the opening of the markets on the date of the start of the auction until the close of the markets on the date of settlement thereof.

The securities available for investment, the list of appointed agents and the payment of interest and the payment schedule at maturity can be accessed via (https://www.cbsl.gov.lk/sites/default/files/cbslweb_documents /about/sldb_direct_window_offer_information_e.pdf).

In its short-term roadmap unveiled in October, CBSL announced its intention to expand and diversify SLDB’s investor base in order to attract foreign investment.

In October, the $ 1 billion SLDBs were due to mature within six months, ie until March 2022. Of this amount, 88.9% is held by national banks .

The CBSL said that the concentration of SLDB favors domestic banking sector investment and that a gradual increase in investor preference from the corporate sector has been observed in recent offers.

He also said that the Average Time to Maturity (ATM) of recent issues tipped towards shorter maturities and that investor preference appeared to be for fixed rate SLDBs.

In line with the measures announced in the short-term roadmap, the immediate objective was to attract government and private institutional investors for SLDBs from the Middle East, Asia and the rest of the world as well as eligible domestic investors and SLDBs also to be negotiated directly with investors before upcoming deadlines.

CBSL planned to raise an additional $ 300 million within six months (between October 2021 and March 2022) of which nearly 3 months have passed, however.

As of November 30, 2021, the stock of SLDBs is estimated at $ 2.3 billion. Those maturing in 2022 are worth $ 1.4 billion and $ 607 million in 2023 and $ 206 million by 2024.


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Mortgage interest rates as of December 24, 2021: rates go down https://bobsbirdhouse.com/mortgage-interest-rates-as-of-december-24-2021-rates-go-down/ Fri, 24 Dec 2021 14:00:00 +0000 https://bobsbirdhouse.com/mortgage-interest-rates-as-of-december-24-2021-rates-go-down/ H. Armstrong Roberts / Getty A variety of major mortgage rates have come down today. Average interest rates for 15-year fixed and 30-year mortgages have declined. The average rate for the most common type of variable rate mortgage, the 5/1 variable rate mortgage, has also declined. Although mortgage rates are constantly changing, they are quite […]]]>

H. Armstrong Roberts / Getty

A variety of major mortgage rates have come down today. Average interest rates for 15-year fixed and 30-year mortgages have declined. The average rate for the most common type of variable rate mortgage, the 5/1 variable rate mortgage, has also declined. Although mortgage rates are constantly changing, they are quite low right now. For this reason, now is the perfect time for potential buyers to get a fixed rate. Before buying a home, don’t forget to think about your personal needs and financial situation, and look for several lenders to find the one that’s right for you.

30-year fixed rate mortgages

The 30-year fixed mortgage rate average is 3.19%, down 5 basis points from seven days ago. (One basis point equals 0.01%.) Thirty-year fixed rate mortgages are the most common loan term. A 30 year fixed rate mortgage will usually have a smaller monthly payment than a 15 year mortgage, but usually a higher interest rate. While you’ll pay more interest over time – you pay off your loan over a longer period – if you’re looking for a lower monthly payment, a 30-year fixed mortgage may be a good option.

15-year fixed rate mortgages

The average rate for a 15-year fixed-rate mortgage is 2.50%, down 2 basis points from seven days ago. Compared to a 30-year fixed mortgage, a 15-year fixed mortgage with the same loan value and the same interest rate will have a higher monthly payment. But a 15 year loan will usually be the best deal, if you are able to afford the monthly payments. You will usually get a lower interest rate and pay less interest overall because you pay off your mortgage much faster.

5/1 adjustable rate mortgages

A 5/1 ARM has an average rate of 3.18%, down 6 basis points from the same period last week. With an ARM mortgage, you will typically get a lower interest rate than a 30-year fixed mortgage for the first five years. However, as the rate adjusts to the market rate, you could end up paying more after this period, as described in your loan terms. For borrowers who are considering selling or refinancing their home before rates change, an adjustable rate mortgage may be a good option. Otherwise, changes in the market could dramatically increase your interest rate.

Mortgage rate trends

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

Average mortgage interest rates

Product Rate Last week Change
30 years fixed 3.19% 3.24% -0.05
15 years fixed 2.50% 2.52% -0.02
Giant 30-year mortgage rate 2.74% 2.74% NC
30-year mortgage refinancing rate 3.16% 3.21% -0.05

Prices as of December 24, 2021.

How to find personalized mortgage rates

When you’re ready to apply for a loan, you can contact a local mortgage broker or search online. In order to find the best home loan, you will need to consider your goals and current finances. Things that affect the mortgage rate you might get include: your credit rating, down payment, loan-to-value ratio, and debt-to-income ratio. Typically, you want a higher credit score, larger down payment, lower DTI, and lower LTV to get a lower interest rate. Besides the interest rate, factors such as closing costs, fees, points of call, and taxes may also be factored into the cost of your home. Be sure to talk to multiple lenders – including local and state banks, credit unions, and online lenders – and a comparator to find the best loan for you.

How does the term of the loan affect my mortgage?

An important factor to consider when choosing a mortgage loan is the length of the loan or the payment schedule. The most commonly offered loan terms are 15 years and 30 years, although you can also find 10, 20 and 40 year mortgages. Mortgages are divided into fixed rate and variable rate mortgages. The interest rates for a fixed rate mortgage are set for the term of the loan. Unlike a fixed rate mortgage, the interest rates on a variable rate mortgage are only fixed for a certain period of time (usually five, seven, or 10 years). After that, the rate changes every year based on the current interest rate in the market.

When choosing between a fixed rate mortgage and an adjustable rate mortgage, you need to consider how long you plan to stay in your home. Fixed rate mortgages might be more suitable if you plan to stay in a house for a period of time. Fixed rate mortgages offer more stability over time than variable rate mortgages, but variable rate mortgages can sometimes offer lower interest rates initially. However, you might get a better deal with an adjustable rate mortgage if you only plan to keep your home for a few years. Generally, there is no better loan term; it all depends on your goals and your current financial situation. Make sure you do your research and know your own priorities when choosing a mortgage.


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