Loan interest – Bobs Birdhouse http://bobsbirdhouse.com/ Wed, 22 Jun 2022 10:01:07 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://bobsbirdhouse.com/wp-content/uploads/2021/06/cropped-icon-32x32.png Loan interest – Bobs Birdhouse http://bobsbirdhouse.com/ 32 32 The MOBUCK$ program offers low-interest loans to small businesses https://bobsbirdhouse.com/the-mobuck-program-offers-low-interest-loans-to-small-businesses/ Wed, 22 Jun 2022 09:32:00 +0000 https://bobsbirdhouse.com/the-mobuck-program-offers-low-interest-loans-to-small-businesses/ SPRINGFIELD, Mo. (KY3) — As interest rates rise, it could become difficult for farmers, business owners and communities to borrow much-needed funds. The Missouri Treasurer’s Office works with local lenders to lower interest rates for qualified borrowers. “We’re at a point where interest rates are going up, and I believe they’re going to keep going […]]]>

SPRINGFIELD, Mo. (KY3) — As interest rates rise, it could become difficult for farmers, business owners and communities to borrow much-needed funds.

The Missouri Treasurer’s Office works with local lenders to lower interest rates for qualified borrowers.

“We’re at a point where interest rates are going up, and I believe they’re going to keep going up,” Missouri Treasurer Scott Fitzpatrick said. “If we end up in a recession of some kind, or if we end up on a bumpy road economically. It is important that businesses have access to affordable capital.

MOBUCK$ is a linked deposit program that helps institutions obtain funds at lower interest rates. This means that the Missouri Treasurer’s Office will provide money to a lender to fund a loan. The money is provided to the lender at a market discount rate. Then the lender passes on the savings to the borrower.

“The bigger the loan, the bigger the savings will be,” Fitzpatrick said. “But not all loans are, you know, million dollars, are they? It could be anything, you buy a vehicle and you need to finance a vehicle or a small piece of equipment. It could be up to building a brand new manufacturing plant, or it could be a loan for a farmer, or it could be a loan against livestock, whatever that need is, the program can meet that.

Through this program, lenders can reduce the interest rate by 2-3%. The program was previously known as ____. The Treasurer’s Office has partnered with more than 140 state lenders to provide these loans to qualified borrowers. Terry Harden of Terry’s Towing received a MOBUCK$ loan and was able to pay off the bill sooner thanks to the lower interest rate.

“If you want to save money, it is better to take the MOBUCK$ loan. More money in your pocket is less money than someone else,” Harden said. “So it’s a win-win for you.”

There are six different program categories, and they all have different requirements. For more information on the MOBUCKS program, click HERE.

To report a correction or typo, please email digitalnews@ky3.com

Copyright 2022 KY3. All rights reserved.

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High Interest Rates and Low Mortgage Applications Are Good for Homebuyers – Here’s Why https://bobsbirdhouse.com/high-interest-rates-and-low-mortgage-applications-are-good-for-homebuyers-heres-why/ Mon, 20 Jun 2022 13:02:17 +0000 https://bobsbirdhouse.com/high-interest-rates-and-low-mortgage-applications-are-good-for-homebuyers-heres-why/ Kritchanut/Getty Images When it comes to buying a home, the market is so competitive that buying a home seems out of reach for many potential homeowners. Despite alarming interest rates and house prices, now may be the time for you to buy, simply because others are not. Watch: Here’s how much cash you need to […]]]>

Kritchanut/Getty Images

When it comes to buying a home, the market is so competitive that buying a home seems out of reach for many potential homeowners. Despite alarming interest rates and house prices, now may be the time for you to buy, simply because others are not.

Watch: Here’s how much cash you need to hoard if a national emergency hits
More: 10 things you should always buy at Walmart

For the first time in seven years, the 30-year mortgage rate exceeded 5% in April and home prices jumped 19% between January 2021 and January 2022. In March, the median price of active home listings was $405,000 — the highest point ever. , according to Realtor.com.

The latest consumer price index hit 8.5%, the highest rate of price growth since December 1981. People are feeling the pinch at the grocery store, where the cost of meat, poultry, fish and eggs increased by almost 14% compared to last year. And at the gas pump, a gallon of unleaded is now over $5.

There is little upside to rising mortgage interest rates and runaway inflation, but the current economic situation may force lenders to ease their financing standards to attract more buyers. In other words, the current economic climate may provide opportunities for borrowers previously excluded from term financing. Refinancing and purchase requests are significantly lower than last year, for example.

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We could see lenders being much more lenient in approving larger loans, but borrowing more than you can afford is a dangerous game. Prospective buyers should always balance their existing debt, disposable income, and spending principles before signing a mortgage.

Opening up mortgage applications could also give those with lower credit scores the chance to get home loan approval. According to an analysis of federal mortgage data from Inside Mortgage Finance, Fannie Mae and Freddie Mac approved nearly 17% of loans for people with credit scores between 620 and 699 in the first quarter of this year. That’s a 9.4% increase from the first quarter of 2021. That being said, credit inquiries haven’t gotten too loose, according to MBA vice president Joel Kahn.

“Credit availability has gradually increased since mid-2021, but remains about 30% tighter than it was at the start of 2020,” Khan said in a credit availability report in March.

Regardless of volatile economic trends and a murky outlook for interest rates and housing prices, you might be able to borrow to your advantage and make home ownership a reality in 2022.

More from GOBankingRates

This article originally appeared on GOBankingRates.com: High Interest Rates and Low Mortgage Applications Are Good for Homebuyers – Here’s Why

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Live updates on finances and payments in the United States: cost of living, inflation, mortgage, interest rates, SS benefits https://bobsbirdhouse.com/live-updates-on-finances-and-payments-in-the-united-states-cost-of-living-inflation-mortgage-interest-rates-ss-benefits/ Sat, 18 Jun 2022 22:55:30 +0000 https://bobsbirdhouse.com/live-updates-on-finances-and-payments-in-the-united-states-cost-of-living-inflation-mortgage-interest-rates-ss-benefits/ Featured: June 18, 2022 – The average price of a gallon of gasoline in the United States plunges below $5 for the first time in a week. – 30-year fixed rate mortgage interest rates reached 5.78%at their highest since the end of 2008. When will mortgage rates fall? – Bitcoin price drops below $20,000 for […]]]>

Featured: June 18, 2022

– The average price of a gallon of gasoline in the United States plunges below $5 for the first time in a week.

– 30-year fixed rate mortgage interest rates reached 5.78%at their highest since the end of 2008. When will mortgage rates fall?

Bitcoin price drops below $20,000 for the first time since 2020, registering a 32% drop in the last month – See the rise and fall of crypto

– The Fed outlines the reasons for 0.75 percentage point rise in interest rates – why did they increase the prices?

– Relief measure in the era of the pandemic free school meals comes to an end

– Fed Chairman Powell: We are focused on bring inflation back to our 2% target

Elon Musk faces 258 billion dollars lawsuits over alleged Dogecoin ‘pyramid scheme’

– Biden may remove some tariffs on china with the aim of reducing prices for consumers

Real wages fell by 0.6% while inflation led to an average price increase of one percent on the market in May

– ‘Contraction‘ reduces the size of products for consumers

Useful links and information

Gas prices in the United States: Which countries have the most expensive gasoline?

– When President Biden make a student loan decision forgiveness

– Do I have to pay taxes on Social Security benefits? How many?

Related AS USA News:

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How will rising interest rates affect the San Antonio real estate market? Local real estate, lending service weigh https://bobsbirdhouse.com/how-will-rising-interest-rates-affect-the-san-antonio-real-estate-market-local-real-estate-lending-service-weigh/ Thu, 16 Jun 2022 23:04:47 +0000 https://bobsbirdhouse.com/how-will-rising-interest-rates-affect-the-san-antonio-real-estate-market-local-real-estate-lending-service-weigh/ SAN ANTONIO – The Federal Reserve instituted its largest interest rate hike in nearly 30 years on Wednesday, but that shouldn’t slow San Antonio’s housing market. Jack Hawthorne, CEO of Keller Williams Heritage, said the federal government’s decision could loosen our market for potential buyers. “As strange as it sounds, it’s actually a really exciting […]]]>

SAN ANTONIO – The Federal Reserve instituted its largest interest rate hike in nearly 30 years on Wednesday, but that shouldn’t slow San Antonio’s housing market.

Jack Hawthorne, CEO of Keller Williams Heritage, said the federal government’s decision could loosen our market for potential buyers.

“As strange as it sounds, it’s actually a really exciting time if you want to buy a home,” Hawthorne said.

“People are kind of like, I don’t know if I want to buy. I don’t know if I want to sell. That means sellers don’t get as many offers. Every time you go out and bid on a house, instead of competing with 27 other people, you’re competing with maybe two. And now you have the ability to ask for things that you couldn’t before,” Hawthorne said.

Another thing Hawthorne said to keep in mind is that if potential buyers are thinking of buying a home right now, they can wait for interest rates to come back down, but home values ​​in San Antonio continue to go down. ‘increase.

A d

“Interest rates can go down to 3%, but this house is going to be valued 15 to 16% more when you buy it. So either way the house is going to get more expensive to buy,” Hawthorne said. “What’s usually the best option is to buy the house, plan to refinance in a few years and the rates go down because once you own it, you benefit from that appreciation.”

Hawthorne said that while the appreciation we’ve seen over the past few years “is extremely unsustainable,” prices aren’t going to go down, but appreciation will go down.

“We’re going back down to a normal rate of appreciation of 4 to 6%. But the prices, they now have a floor. It’s not expected to drop because we have such a shortage of supply in San Antonio,” Hawthorne said.

Lisa Arlette, vice president of Mortgage Lending San Antonio, said if you’ve been looking to buy a home for a while, it’s important to note that some local families may be priced out of the money with this hike.

A d

“We’ve almost doubled interest rates since January, so if they’re working with that pre-determined information, it’s no longer accurate,” Arlette said.

“The debt-to-income ratio is one of the main qualifying factors for mortgages. If the DTI was tight before, it may now have crossed that threshold and become unworkable in this particular lending program,” Arlette said. “Consult with a financial professional and recalibrate not only expectations, but also qualifying parameters and see what other options are available.”

Arlette adds that now might be a good time to also lock in an interest rate, especially for those considering new construction or under contract for new construction.

“Then the next question is do they offer the float down, so if the market improves in their favor, then can they take advantage of that as well,” Arlette said.

But both Arlette and Hawthorne said now was not the time to panic and we shouldn’t see another housing slump like 2008.

A d

“In 2008, if you had a pulse, you could get a loan. They were making over-indebted loans. People couldn’t afford to support them,” Hawthorne said.

“It was a combination of really dodgy lending and predatory lending practices. That’s not the case today. The sky isn’t falling. We’ve only just returned to a normal market environment,” said Arlette.

Also on KSAT:

Copyright 2022 by KSAT – All rights reserved.

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Understanding the Self-Storage Loan Market https://bobsbirdhouse.com/understanding-the-self-storage-loan-market/ Wed, 15 Jun 2022 07:13:25 +0000 https://bobsbirdhouse.com/understanding-the-self-storage-loan-market/ The sharp rise in interest rates since the start of the year has surprised many. Amid the coronavirus pandemic, policymakers have made a concerted effort to keep interest rates low to fuel a recovery in its economic effects. Fast forward to today, and it’s a different picture. With unemployment near record lows, labor shortages, ongoing […]]]>

The sharp rise in interest rates since the start of the year has surprised many. Amid the coronavirus pandemic, policymakers have made a concerted effort to keep interest rates low to fuel a recovery in its economic effects. Fast forward to today, and it’s a different picture. With unemployment near record lows, labor shortages, ongoing supply chain issues, huge fuel price increases and strong consumer demand for goods and services, we are now plagued by inflation not seen in over 40 years.

The rise in interest rates was fueled by the actions of the 12-member Federal Open Market Committee (FOMC), which controls the federal funds rate. This is the interest rate at which depository institutions lend Federal Reserve balances to other depository institutions overnight. Changes in this rate trigger a chain of events that affect other short-term interest rates, exchange rates, long-term interest rates, and the amount of money and credit available. Ultimately, all of this influences a range of economic variables, including employment, production, and the prices of goods and services.

Let’s take a look at how all of this relates to loan availability for self-storage properties and what rates borrowers can expect when looking for financing.

Availability of funding

Unlike other market cycles, like the 2008 recession, when capital was hard to come by at all costs, financing is readily available from all types of funding sources for all types of loan applications. Whether you are looking for cash for a development, acquisition or expansion, or perhaps looking to refinance, there are lenders ready to offer you options.

Self-storage has been a benefactor of consumer behavior during the pandemic. This is supported by quarterly announcements from the industry’s real estate investment trusts, all of which reported healthy occupancy rates in the mid-1990s as well as year-over-year revenue increases of more than 15%. This kind of performance once again shows the resilience of self-storage through tough cycles. Coming out of the pandemic, it is seen by many lending sources as a preferred property type, alongside the industrial and multi-family sectors.

Fed funds rate hike

Floating rate loans are usually tied to indexes that move almost in sync with the movement of the fed funds rate. For example, see the following table:

If the FOMC continues to raise the federal funds rate, a borrower who has a variable rate loan is likely to see their interest rate increase in steps similar to Fed increases. There is a greater than 70% chance that the federal funds rate will hit 2.25% by the end of the year, according to the Chicago Merchandise Exchange FedWatch Tool.

As things stand, there can be many instances where variable rate loans have lower interest rates than comparative fixed rate loans. However, these scenarios could reverse if the FOMC executes on its plan to continue raising the fed funds rate. For reference, most construction loans are variable rate (and interest only) during construction as well as 12 to 36 months during lease. If you have or plan to have a variable rate loan, it is prudent to budget for increases in interest charges over the remaining term. For construction financing, be sure to create an adequate interest reserve in the loan.

Interest in fixed rate mortgages has also increased since the start of the year. In general, a loan that probably would have had a fixed interest rate quoted between 3.25% and 3.50% six months ago would probably be quoted between 4.5% and 5.5% today. Many fixed rate loans are priced based on a spread over the relative duration of Treasury or SOFR rate indices.

It is important to note that each loan transaction has unique characteristics and is priced accordingly. There are also a myriad of other terms to consider when choosing an option that best suits your investment goals. The Treasury yield does not necessarily move in sync with the FOMC actions. In fact, in May, the 10-year Treasury yield fell more than 0.25%. Moreover, at the end of May, the yield curve was flat, with yields on 5- and 10-year Treasury bills being almost identical.

Loan size to value

Since self-storage is in high demand as a type of commercial property, ranging from traditional facilities in rural communities to multi-storey Class A institutional properties on prime real estate in infill urban areas, valuations and sales remain extremely aggressive. The more forcefully a property is purchased relative to existing cash flows (i.e. the lower the cap rate), the more difficult it is to receive maximum proceeds based on loan-to-value (LTV) parameters ) max.

Loans for acquisitions and refinancings are mainly underwritten and dimensioned according to historical operating results, with a minimum debt service coverage (DSC). This is calculated by dividing the net operating income (NOI) by the debt payment. The minimum DSC generally ranges from 1.2 to 1.35. With rising rates and historically low valuations, these constraints can limit loan sizes to well below the maximum LTV.

To give some perspective, a termsheet can have a maximum LTV of 75% and a minimum DSC of 1.3. The resulting loan could potentially achieve an LTV of 55% to 60%, well below the maximum LTV of 75% based on the interest rate, amortization, and capitalization rate used during valuation.

Reduced prepayment penalties

If you have self-storage facilities funded by commercial mortgage-backed securities (CMBS) or have a loan with a matching swap instrument, rising interest rates work in your favor. CMBS loans, always with prepayment or prepayment clauses, are prohibitively expensive when prevailing interest rates are significantly lower than the note interest rate. As rates rise, these prepayment penalties are significantly reduced.

I recently updated a prepayment penalty calculation that was over $900,000 before the rate increase. Today it is closer to $350,000. While still significant, it is now in a range where it is practical to prepay existing debt and pull in significant equity by refinancing the property. In cases where a swap instrument is in place (to make a floating rate loan fixed through a counterparty agreement), many owners may be able to repay existing loans with a premium, which means that they will owe less than their current outstanding amount. balance.

Funding always makes sense

Another reason to consider financing now is to enjoy strong operating results. Many self-storage owners have seen year-over-year NOI increases of 10% to 20%. If this is your case, you are in an enviable position to consider refinancing and access a significant return on equity on your investments.

The low interest rates achieved over the past two years were an aberration and unsustainable. Current rates are well within the usual standard. To determine the prices of new loans, lenders must continually manage their respective lending platforms taking into account the specific availability and cost of funds and asset allocation. What is happening in today’s market is greater than usual differentiation between lenders in terms of terms, amounts and comparative loan rates.

Relationships with current lenders have value, business purpose and benefits. When it’s time to shop the market, it pays to hire an expert loan broker who can provide advice and information. Just because rates are rising doesn’t necessarily mean self-storage financing shouldn’t be considered. You just need to plan accordingly.

Neal Gussis is director of mortgage company CCM Commercial Mortgage. With over 30 years of experience as a national self-storage mortgage broker and advisor, he specializes in securing debt and equity for self-storage owners nationwide. He can be reached at 847.922.3750 Where [email protected].

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Nuveen Mortgage and Income Fund (NYSE:JLS) Brief Interest Update https://bobsbirdhouse.com/nuveen-mortgage-and-income-fund-nysejls-brief-interest-update/ Mon, 13 Jun 2022 14:47:55 +0000 https://bobsbirdhouse.com/nuveen-mortgage-and-income-fund-nysejls-brief-interest-update/ Nuveen Mortgage and Income Fund (NYSE:JLS – Get Rating) was the target of significant short-term interest growth in May. As of May 31, there was short interest totaling 3,000 shares, a growth of 76.5% from the total of 1,700 shares as of May 15. Based on an average daily volume of 11,100 shares, the short […]]]>

Nuveen Mortgage and Income Fund (NYSE:JLS – Get Rating) was the target of significant short-term interest growth in May. As of May 31, there was short interest totaling 3,000 shares, a growth of 76.5% from the total of 1,700 shares as of May 15. Based on an average daily volume of 11,100 shares, the short interest ratio is currently 0.3 days.

A number of large investors have recently increased or reduced their stake in JLS. Wells Fargo & Company MN increased its stake in Nuveen Mortgage and Income Fund by 8.2% during Q2. Wells Fargo & Company MN now owns 57,044 shares of the company valued at $1,192,000 after purchasing an additional 4,317 shares last quarter. Morgan Stanley increased its holdings in Nuveen Mortgage and Income Fund by 2.8% in the third quarter. Morgan Stanley now owns 146,278 shares of the company worth $3,035,000 after buying 4,014 more shares in the last quarter. Thrivent Financial for Lutherans increased its holdings in Nuveen Mortgage and Income Fund by 88.0% in Q3. Thrivent Financial for Lutherans now owns 99,572 shares of the company worth $2,073,000 after purchasing an additional 46,614 shares last quarter. Patriot Financial Group Insurance Agency LLC increased its position in Nuveen Mortgage and Income Fund by 5.0% during the third quarter. Patriot Financial Group Insurance Agency LLC now owns 11,861 shares of the company valued at $246,000 after purchasing an additional 569 shares during the period. Finally, Allspring Global Investments Holdings LLC bought a new position in Nuveen Mortgage and Income Fund during the fourth quarter, valued at approximately $539,000.

NYSE JLS shares were flat at $17.28 on Monday. 2,340 shares of the company were traded, against an average volume of 11,245. The company has a 50-day moving average of $17.52 and a 200-day moving average of $18.99. Nuveen Mortgage and Income Fund has a fifty-two week low of $16.96 and a fifty-two week high of $21.49.

The company also recently announced a monthly dividend, which will be paid on Friday, July 1. Shareholders of record on Wednesday, June 15 will receive a dividend of $0.083. This represents an annualized dividend of $1.00 and a yield of 5.76%. The ex-date of this dividend is Tuesday, June 14.

About Nuveen Mortgage and Income Fund (Get a rating)

Nuveen Mortgage and Income Fund is a closed-end, fixed-income mutual fund launched by Nuveen Investments, Inc. The fund is co-managed by Nuveen Fund Advisors LLC, Nuveen Asset Management, LLC and Wellington Management Company LLP. It invests in US bond markets. The fund invests in undervalued mortgage-backed securities, consisting primarily of non-agency residential mortgage-backed securities and commercial mortgage-backed securities offering favorable total return potential.

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Student loan interest rate to be capped at 7.3% in autumn, says DfE | Students https://bobsbirdhouse.com/student-loan-interest-rate-to-be-capped-at-7-3-in-autumn-says-dfe-students/ Sat, 11 Jun 2022 19:57:00 +0000 https://bobsbirdhouse.com/student-loan-interest-rate-to-be-capped-at-7-3-in-autumn-says-dfe-students/ Ministers intervened to reduce a sharp rise in interest rates on student loans, after the recent rise in inflation meant rates would triple for many graduates by autumn. The Department for Education said the maximum rate from September was to be set at 7.3% instead of the 12% it would have reached in September, based […]]]>

Ministers intervened to reduce a sharp rise in interest rates on student loans, after the recent rise in inflation meant rates would triple for many graduates by autumn.

The Department for Education said the maximum rate from September was to be set at 7.3% instead of the 12% it would have reached in September, based on earlier inflation figures plus 3%.

The DfE said the change meant the accrued interest of a borrower in England and Wales with a student loan balance of £45,000 would fall by around £180 a month, down from 12% interest rate .

Capping the maximum rate will primarily benefit wealthier graduates, according to the Institute for Fiscal Studies (IFS), as they are more likely to repay their entire loan within 30 years of graduation. Other graduates have any outstanding balance after 30 years.

The maximum interest rate is currently charged on loans to graduates earning more than £49,000 a year, but the change to the DfE means all graduates will be charged the same 7.3% – which is a steep increase on to the current 1.5% charged on loans from those earning £27,000 or less.

Michelle Donelan, Minister for Universities for England, said: “I want to reassure that this does not change the monthly repayment amount for borrowers, and we have brought this announcement forward to provide more clarity and peace of mind for graduates. .”

Monthly student loan repayments are based on income rather than interest rates or the amount borrowed. Graduates pay 9% of their earnings above a reimbursement threshold of £27,295 per year.

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IFS’ Ben Waltmann said: ‘We said in April that the current student loan interest rate policy was deeply flawed and would lead to a rollercoaster of interest rates for graduates. It is great to see that, as we have suggested, the government has decided to act to avoid the roller coaster.

“However, for most graduates, this announcement will have little or no effect on their refunds. Most of those with undergraduate loans will probably never repay their loans in full, so the interest rate never affects their repayments.

But Larissa Kennedy, the president of the National Union of Students UK, said the new rates would still be “crucially high” for many graduates.

“Ministers should prioritize providing urgent cost-of-living assistance here and now. We hear from students who can’t even afford to keep taking the bus,” she said.

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Home loan interest rates: As interest rates rise with rising RBI, here are 5 banks offering the cheapest home loan interest rates https://bobsbirdhouse.com/home-loan-interest-rates-as-interest-rates-rise-with-rising-rbi-here-are-5-banks-offering-the-cheapest-home-loan-interest-rates/ Fri, 10 Jun 2022 04:01:00 +0000 https://bobsbirdhouse.com/home-loan-interest-rates-as-interest-rates-rise-with-rising-rbi-here-are-5-banks-offering-the-cheapest-home-loan-interest-rates/ Home loan borrowers should watch their monthly home loan (EMI) installments carefully as interest rates on home loans are on the rise after the Reserve Bank of India raised the repo rate by 50 basis points at 4.90%. This is the second time that the central bank has raised its key rates since May 2022. […]]]>
Home loan borrowers should watch their monthly home loan (EMI) installments carefully as interest rates on home loans are on the rise after the Reserve Bank of India raised the repo rate by 50 basis points at 4.90%. This is the second time that the central bank has raised its key rates since May 2022.

Now, borrowers will have to prepare for continued interest rate hikes on their loans after enjoying low interest rates for a decade.

Here is an overview of the 5 banks offering the cheapest interest rates for home loans.

How much your EMI will increase

The total increase in the repo rate after the current boost is 0.9%. Due to central bank rate hikes, lenders such as banks and housing finance companies will increase their lending rates in response, which means your EMIs will also increase. Your EMI will increase by Rs 1,648 from Rs 23,259 to Rs 24,907. If you have a home loan with a balance of Rs 30 lakh and a balance term of 20 years at 7% interest per annum, your EMI would increase by Rs 1,648 from Rs 23,259 to Rs 24,907. You may have to pay additional Rs 55 in EMI for every lakh rupees borrowed.

Also Read: ICICI Bank, Bank of Baroda, Bank of India, PNB Raise Home Loan Interest Rates: Check Latest Rates Here

Amount of the loan

Most lenders offer home loans ranging from 75-90% of the cost of the property, depending on the amount of the loan, as defined by the regulator. Depending on your eligibility for the home loan, if the property is valued at Rs 50 lakh by the lender, you can get a maximum loan of Rs 40 lakh (80% of the cost of the property for a loan amount up to Rs 75 lakh).

Pre NDE

Pre-EMI is a term that refers to a loan that is taken out on a property that is still under construction. In this case, your loan is disbursed in stages based on the amount of installments you must pay to the promoter. According

“You are generally required to start paying interest only on the disbursed loan amount (known as pre-EMI interest). If you want to start principal repayment immediately, you can choose to terminate the loan and start paying the EMI on cumulative amounts disbursed.

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Senators call for cheaper loans and better financial services | The new times https://bobsbirdhouse.com/senators-call-for-cheaper-loans-and-better-financial-services-the-new-times/ Wed, 08 Jun 2022 14:54:11 +0000 https://bobsbirdhouse.com/senators-call-for-cheaper-loans-and-better-financial-services-the-new-times/ The senators called for strategies to ensure that Rwandans have access to affordable financial services, such as low-interest loans, to help them invest in income-generating activities to improve their lives and to restore economy. They made the request on Tuesday, June 7, 2022 during a consultative meeting on the delivery of inclusive financial services, which […]]]>

The senators called for strategies to ensure that Rwandans have access to affordable financial services, such as low-interest loans, to help them invest in income-generating activities to improve their lives and to restore economy.

They made the request on Tuesday, June 7, 2022 during a consultative meeting on the delivery of inclusive financial services, which was held in parliament.

Senator Juvenal Nkusi, Chairman of the Economic Development and Finance Committee, said that currently the interest rates charged by banks and other financial institutions are high and prohibitive.

Currently, the average interest rate on commercial bank loans in the country is 16%.

However, Nkusi said there are additional fees which actually increase the interest rate to 20%, calling for cheap loans and ease of process.

Worse still, he said, the Umurenge savings and credit cooperatives (SACCOs), closer to the people (currently present in all 416 sectors of the country), charge an even higher rate of interest on loans.

“This issue needs to be resolved,” Nkusi said.

Central Bank Governor John Rwangombwa told senators that all SACCOs charge up to 24% of their loans, but account for around Rwf177 billion or 39% of total financial sector assets.

About 3.5 million Rwandans are banked with SACCO, according to Rwangombwa.

“This means that SACCOs are the component of the financial sector that impacts the lives of Rwandans and their development,” he said, observing that their members should have a say in defining an interest. that is affordable to them.

Deeper financial inclusion

Nkusi praised the fact that 93% of the approximately 7 million adults – 16 years or older – in Rwanda were financially included (including formal and informal financial products/services), according to the FinScope Rwanda survey conducted in 2020.

However, he expressed concern that many young people in the country do not have access to financial services compared to other categories of the population.

The survey showed that young people in the 16-24 age group are financially excluded at 18%, which is significantly higher than the national average of 7% exclusion.

“Yet young people need capital to create their own jobs. How can this investment be obtained for them to start running businesses,” he wondered.

Rwangombwa said lending by financial institutions in Rwanda was equivalent to 28% of the country’s gross domestic product, which he said is still low compared to the sub-Saharan Africa average of 37%.

He said the fact that there is a weak savings culture in Rwanda means that financial institutions only get money from big companies, but at a high cost. It also forces banks to charge high interest rates to customers.

Noel Muhawenimana, managing director of Umutanguha Finance Company Plc, said that about 35% of loans from this financial institution were for financing agriculture.

But he said he was concerned about cash flow volatility, which is caused by an inadequate savings culture.

“To meet such a problem, we resort to borrowing money from foreign countries at a high cost of about 12 or 13% interest rate, and we give loans to the farmer at about 22%,” he said, indicating that the institution would charge less if it secured affordable funds.

He proposed that well-functioning microfinance institutions should be facilitated to access deposits by the Rwanda Social Security Board, which are relatively affordable.

“We also want to be able to access the deposits of the Rwanda Social Security Board, which is the biggest provider of this money,” he said.

Uzziel Ndagijimana, Minister of Finance and Economic Planning indicated that such a request for access by micro-finance institutions to RSSB deposits will be examined.

Other proposed solutions

Rwangombwa said that better financial services will be achieved through the implementation of different means such as strategies to increase the culture of long-term savings, because the money that banks lend to customers comes from the save people.

These include the EjoHeza long-term savings scheme and the Rwanda National Investment Trust (RNIT) [Iterambere Fund].

Also, in an effort to encourage savings, he said the government has put in place incentives for people who venture into long-term savings, whereby when saving in a bank for over a year [without withdrawing it]there is tax exemption on accrued interest, while for [the interest on] capital savings in the capital market are taxed at only 5 percent.

wholenganya@newtimesrwanda.com

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Cannabis Education Funding Now Available https://bobsbirdhouse.com/cannabis-education-funding-now-available/ Mon, 06 Jun 2022 15:15:00 +0000 https://bobsbirdhouse.com/cannabis-education-funding-now-available/ Green Flower and Climb Credit improve affordability and accessibility for Cannabis job training as the need for skilled workers grows VENTURA, Calif., June 6, 2022 /PRNewswire/ — green flowerthe leader in cannabis education, and Ascension Credita new breed of student loan company focused on funding career development programs, have joined forces to make cannabis education […]]]>

Green Flower and Climb Credit improve affordability and accessibility for Cannabis job training as the need for skilled workers grows

VENTURA, Calif., June 6, 2022 /PRNewswire/ — green flowerthe leader in cannabis education, and Ascension Credita new breed of student loan company focused on funding career development programs, have joined forces to make cannabis education more affordable and accessible to students through a variety of funding options.

“We know that the biggest barrier to entering a successful career in cannabis is education, and the biggest barrier to getting that education is cost,” said Max Simon, CEO and co-founder of Green Flower. “Green Flower has long been looking for the right partner to provide simple, affordable and accessible funding options to prospective students in all of our higher education programs across the country. We are delighted to now be working with Climb Credit to offer just that as We provide career-changing cannabis education to anyone who wants to take that journey.”

With Climb, students at any of Green Flower’s 18 (and soon to be more) university partners offering online cannabis education certificates can now fund up to their entire tuition, eliminating the cost initial that prevented so many people from registering. Climb’s loan process is simple and completely online. The application takes less than five minutes to complete and the majority of funding decisions are received almost immediately, with no impact on the applicant’s credit rating until the loan is funded. This allows students to complete multiple applications and find the best rate.*

“Climb’s mission is centered on affordability, accessibility and inclusivity, which aligns perfectly with what Green Flower wants for its programs as well,” said Casey Powers, CEO of Climb Credit. “Simply put, we’re helping people access a career-focused education when they otherwise couldn’t. In fact, 73% of Climb borrowers across all of our partners wouldn’t have completed their program without the funding. Climb.**”

Climb works with students from all kinds of credit backgrounds, including people with no credit to their name, to provide multiple ways to pay for their education. These include interest bearing loans as well as a 0% interest option in many programs.

“The cannabis industry creates tens of thousands of exciting and lucrative career opportunities across the country, but there is a significant shortage of skilled professionals,” said Daniel Kalef, Vice President of Higher Education at Green Flower. “This partnership between Climb and Green Flower opens up cannabis education to many more potential students, with the cannabis industry being the ultimate beneficiary of having a much larger pool of qualified and accredited workers to hire.”

Learn more about Green Flower Online Cannabis Certificate Programs in the best schools across United Stateswith Climb Credit funding available at all partner universities.

*To verify the rates and terms you qualify for and your eligibility, Climb performs a soft credit extraction that will not affect your credit score. Once a loan is approved and funded, they will request your full credit report from one or more consumer reporting agencies, which is considered a difficult credit application and may affect your credit.

**Based on over 5,000 survey responses. Data points include Climb’s all-time survey respondents, with duplicate respondents removed, who answered a question about whether or not they could have participated in their program without Climb funding.

About the green flower:

Founded in 2014, Green Flower is the industry leader in cannabis education, empowering thousands of consumers, regulators and professionals with the knowledge they need to succeed in today’s emerging cannabis industry. .

Green Flower’s content and technology platform powers the cannabis programs of top universities and colleges across the country, provides customized learning and compliance solutions for cannabis businesses of all sizes, and provides individuals with the skills and credentials needed to make an impact in the modern cannabis industry. .

About Climb Credit

Climb (NMLS #1240013) is an innovative student payment platform that makes career creation and transformation more accessible, affordable and responsible. Driven by a mission to empower individuals to unlock their career potential – regardless of their credit profile – Climb identifies programs and schools with a demonstrated ability to improve the earnings of their graduates. Next, they provide learners with funding options that are priced and structured to suit the unique needs of those seeking career elevation and increased earning power.

Recognizing the dynamic and diverse nature of a rapidly changing economy, Climb partners with schools that teach everything from cybersecurity to healthcare training, from the operation of heavy machinery to data science and training. from drivers to coding. Climb and its partner schools are committed to inspiring practice that brings real career results as individuals own their next chapter.

Contact: Adam Summers I 708.223.2336

SOURCE Green Flower

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