Scientific Theories – Michigan Paranormal Encounters http://michiganparanormalencounters.com/ Tue, 21 Jun 2022 13:54:53 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://michiganparanormalencounters.com/wp-content/uploads/2021/06/icon-2.png Scientific Theories – Michigan Paranormal Encounters http://michiganparanormalencounters.com/ 32 32 What factors affect personal loan interest rates? https://michiganparanormalencounters.com/what-factors-affect-personal-loan-interest-rates/ Tue, 21 Jun 2022 13:54:53 +0000 https://michiganparanormalencounters.com/what-factors-affect-personal-loan-interest-rates/ Here are 5 crucial factors that affect your personal loan interest rates Personal loans are one of the most versatile financing solutions as there are no restrictions on the use of the sanction. From your vacation expenses to the down payment on your home, you can benefit from a personal loan for almost any need. […]]]>

Here are 5 crucial factors that affect your personal loan interest rates

Personal loans are one of the most versatile financing solutions as there are no restrictions on the use of the sanction. From your vacation expenses to the down payment on your home, you can benefit from a personal loan for almost any need. But before you jump into a personal loan, you need to make sure the cost is within your budget. This is where you assess your overall interest payment, which is determined by personal loan interest rates.

Personal loan interest rates are different among lenders and borrowers. Different lenders offer different interest rates on personal loans depending on your creditworthiness. Generally, with a good CIBIL score, you get nominal interest rates, which makes your personal loan more affordable. When deciding personal loan interest rates, lenders consider several factors. And the good news is that you can boost your credibility by improving certain factors that affect interest rates. Read on to find out what they are.

Monthly pay
Your income helps the lender determine whether you are a subprime borrower or not. A high risk borrower has a high probability of personal loan default.

A high monthly income assures the lender of your ability to repay the loan on time. As a result, they may be more likely to offer you lower personal loan interest rates.

This is also one of the reasons lenders have a minimum income eligibility requirement for a personal loan. You can only apply for a personal loan if you meet this parameter. In addition to your income, your employer also plays a role in the interest rates offered to you. If you are working with a reputable employer, this indicates income stability, assuring the lender of your timely repayment potential.

Reimbursement discipline
Your repayment history is one of the most crucial factors that lenders consider when offering interest rates on personal loans. A good repayment record ensures that lenders consider your credit profile to be low risk for any new loan, including a personal loan. It also shows financial discipline, which increases your credibility. To better plan repayment, use a personal loan calculator to determine if the loan fits your budget by calculating various EMIs for different loan amounts and terms. You can also try automatic payment and reminders to ensure timely payments.

Association with the lender
If you have already made a transaction with a lender, they may offer you attractive interest rates for your personal loan. Indeed, lenders are likely to trust the borrowers whose financial records they hold and generally seek to retain their customers in this way.

Your relationship with the lender can also speed up the approval process. If you have multiple offers from different lenders you have transacted with, you can use an EMI calculator to find out which offer is the best.

Credit score or CIBIL
Your CIBIL score is one of the most important factors that help determine your creditworthiness. Lenders inquire about your CIBIL score before deciding on the terms of your loan. Your CIBIL score and your credit report contain all the information about your past credit behavior. A high credit score shows that you are a credible borrower and lenders can offer you lower interest rates for personal loans. This is why it becomes essential for you to boost and maintain your CIBIL score.

Economic climate and other market factors
Inflation, recession, repo rates, etc. affect the cost of your loan. When there is inflation, lenders offer higher interest rates on personal loans as opposed to lower rates during a recession. Low repo rates also translate into lower interest rates. This is the rate at which lenders borrow from the RBI; therefore, this has a direct impact on the personal loan interest rates available to you. Although these factors are beyond your control, you can, if possible, make the most of them by borrowing during a period of low interest rates.

You can make your personal loan repayment easier by considering these factors. You can also use an EMI calculator, also known as an interest rate calculator, as this tool gives you an estimate of your EMIs and repayment schedule. Based on this information, you can borrow smartly and carefully.

To enjoy affordability and convenience, consider Bajaj Finserv personal loan, which offers a high loan amount of up to Rs. 25,000,000. You can also get repayment flexibility with a tenure ranging from 12 at 60 months. Check your pre-approved offer today.

]]>
Here’s what it really means if Netflix tries to buy Roku https://michiganparanormalencounters.com/heres-what-it-really-means-if-netflix-tries-to-buy-roku/ Sun, 19 Jun 2022 13:00:00 +0000 https://michiganparanormalencounters.com/heres-what-it-really-means-if-netflix-tries-to-buy-roku/ Svideo streaming service netflix (NASDAQ:NFLX) could try to acquire a connected television (CTV) platform Roku (NASDAQ: ROKU)according to rumors that have surfaced in recent weeks. For now, it’s just a rumor, but Netflix has good reason to enter into a deal like this. Video content is becoming commoditized, and Netflix’s recent moves suggest it recognizes […]]]>

Svideo streaming service netflix (NASDAQ:NFLX) could try to acquire a connected television (CTV) platform Roku (NASDAQ: ROKU)according to rumors that have surfaced in recent weeks.

For now, it’s just a rumor, but Netflix has good reason to enter into a deal like this. Video content is becoming commoditized, and Netflix’s recent moves suggest it recognizes the need to pivot quickly.

Here’s what’s happening in CTV

Something monumental recently happened in the CTV space. According to Roku’s first-quarter shareholder letter, 65% of adults ages 18-49 in the United States streamed video content in March, compared to just 63% in that age group who watched traditional pay-TV. like cable and DVRs. For the first time, there were more streamers than non-streamers.

The move to CTV is a great secular growth trend that investors should pay attention to. But there are two types of streaming: paid subscriptions and ad-supported channels. And while streaming in general is the future of the industry, paid streaming services like Netflix are facing a very real headwind.

According to a recent report by market researcher Parks Associates, 32 million households in the United States can be described as service consumers. They frequently switch services and re-subscribe to services they previously dropped.

This suggests there was already a limit to how much consumers would pay for streaming as a whole. And now discretionary income is squeezed even more by inflation. According to Yardeni Research, the average consumer is spending about $180 more per month on gasoline alone this year compared to the same time last year. Therefore, consumers have to cut their spending somewhere, and that may be the money going to paid streaming services.

Indeed, research group OnePoll conducted a survey for ad-supported streaming service Tubi. The survey found that the average consumer has five streaming services, but plans to cut three soon. About 70% of respondents said changes in their personal finances were the main reason for the change.

The challenge for Netflix

Netflix kicked off the streaming revolution, and shareholders enjoyed life-changing returns when it was the only show in town. But with more competition, it’s harder to attract subscribers. And in the last trimester, Netflix lost subscribers for the first time in over a decade.

You need content that is more compelling than the other if you want to gain and retain subscribers. But generating quality content comes at a price; the company already spends billions each year on original films and series. Like the 800 pound gorilla in space, Netflix has more to spend than most competitors, but you may have to spend even more to stay on top.

Spending more strains the bottom line. It’s okay if a company can simultaneously raise prices, but it’s fair to ask how much pricing power Netflix has left to preserve margins. It should be remembered that the company announced price increases in January, shortly before a slight drop in subscriber numbers. For service lovers, maybe it was time to jump ship from Netflix.

This is what happens when something becomes commoditized: price power diminishes and profits eventually erode. This is the challenge Netflix now faces.

Why I (Still) Love Roku Stock

I repeat, the move to CTV is real and still happening. But it is becoming more and more difficult to take advantage of the change with paid services. Netflix recognizes this, which is why it suddenly announced its intention to explore an ad-supported tier for its service. When discussing the first quarter 2022 financial results, management said it plans to add a level of advertising within a year or two, despite previous opposition to the idea.

Having an ad-supported tier will help it retain more subscribers and monetize the original content it has already spent billions of dollars on. After all, Netflix subscribers who are service buyers are more likely to upgrade to the cheaper version than cancel altogether.

But this model still requires Netflix to acquire subscribers in the first place. In contrast, Roku is able to take advantage of CTV’s growth by better monetizing the Distribution content rather than the content itself. There are over 61 million active Roku accounts streaming from various services. And Roku is able to take advantage of all of that at least a bit rather than relying on original content.

If Netflix is ​​seriously considering acquiring Roku, it’s because the distribution may be more valuable than the content – which is why I love my Roku stock.

by Roku market capitalization is around $11.2 billion at the time of this writing, while Netflix alone has $6 billion in cash, suggesting a deal is more than achievable. I think that would be a great move for Netflix shareholders.

However, as a Roku shareholder, I hope that doesn’t happen. As a standalone company, Roku has a terrific trail for above-market returns, and I hope to ride it for years.

10 stocks we like better than Netflix
When our award-winning team of analysts have stock advice, it can pay to listen. After all, the newsletter they’ve been putting out for over a decade, Motley Fool Equity Advisortripled the market.*

They have just revealed what they believe to be the ten best stocks for investors to buy now…and Netflix wasn’t one of them! That’s right – they think these 10 stocks are even better buys.

View all 10 stocks

* Portfolio Advisor Returns as of June 2, 2022

Jon Quast holds positions at Roku. The Motley Fool holds positions and recommends Netflix and Roku. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

]]>
Should I change banks? | the ascent https://michiganparanormalencounters.com/should-i-change-banks-the-ascent/ Thu, 16 Jun 2022 21:39:12 +0000 https://michiganparanormalencounters.com/should-i-change-banks-the-ascent/ Account types and features Most banks and credit unions offer checking accounts, savings accounts, certificates of deposit (CDs), mortgages, personal loans, and more. You may not need some of these services right now, but if you think you might use them in the future, consider choosing a bank that offers them. Also consider any specific […]]]>

Account types and features

Most banks and credit unions offer checking accounts, savings accounts, certificates of deposit (CDs), mortgages, personal loans, and more. You may not need some of these services right now, but if you think you might use them in the future, consider choosing a bank that offers them.

Also consider any specific bank account features you might want. For example, some bank accounts include budgeting tools or the ability to earn interest on debit card purchases. If these things appeal to you, look for a bank account that offers them.

Customer service

Many of us are comfortable with online banking these days and rarely speak to a bank representative. But if there’s a problem with your online account or you have a question about the services, it helps to be able to speak to a live person. See what support options are available to you and check their hours. Phone and email support are the most popular, but some banks may also offer live chat support.

It also doesn’t hurt to get feedback from bank customers. If you know someone who does business with the institution you are considering, you can ask them about their services. Or check out his ratings from independent agencies like JD Power.

]]>
Mortgage rates rise for the first time in weeks https://michiganparanormalencounters.com/mortgage-rates-rise-for-the-first-time-in-weeks/ Mon, 13 Jun 2022 13:20:23 +0000 https://michiganparanormalencounters.com/mortgage-rates-rise-for-the-first-time-in-weeks/ Mortgage rates rose for the first time last week after several consecutive weeks of declines, according to Freddie Mac. (iStock) Mortgage interest rates rose last week after several consecutive weeks of declines, according to the latest data by Freddie Mac. The 30-year fixed-rate mortgage rose to 5.23% for the week ending June 9, according to […]]]>

Mortgage rates rose for the first time last week after several consecutive weeks of declines, according to Freddie Mac. (iStock)

Mortgage interest rates rose last week after several consecutive weeks of declines, according to the latest data by Freddie Mac.

The 30-year fixed-rate mortgage rose to 5.23% for the week ending June 9, according to Freddie Mac’s Primary Mortgage Market Survey. It is from The week before while it averaged 5.09%, and up from 2.96% last year.

Similarly, the 15-year mortgage rose to 4.38% from 4.32% the previous week and 2.23% last year. The five-year Treasury-indexed hybrid variable-rate mortgage (ARM) also rose to 4.12%, from 4.04% the previous week and 2.55% last year.

“After little movement over the past few weeks, mortgage rates have risen again on the back of increased economic activity and new inflation data,” said Freddie Mac chief economist Sam Khater.

If you’re looking to refinance your mortgage or buy a home, comparing multiple lenders can help you save money on your monthly payments. Visit Credible to find your personalized interest rate without affecting your credit score.

HOME PRICE GROWTH REACHED AN ALL-TIME HIGH IN MARCH: THIS IS HOW OWNERS CAN CASH

Home prices could start to decelerate

House prices have reached record highs, increasing by 20.6% per year in March according to the latest Case-Shiller report. This is the largest increase in the report’s history.

“Mortgages are becoming more expensive as the Federal Reserve has begun raising interest rates, suggesting that the macroeconomic environment may not support extraordinary house price growth for much longer,” said Craig Lazzara, managing director of S&P Dow Jones Indices, at the time of the report. . “While it can be safely predicted that price gains will begin to slow, the timing of the deceleration is a tougher choice.”

Other pundits agreed that rising rates could soon begin to dampen the rapid growth in house prices.

“The housing market is incredibly rate sensitive, as mortgage rates suddenly rise, demand falls again,” Khater said. “The significant decline in buying activity, combined with the increased supply of homes for sale, will cause price growth to decelerate to more normal levels, providing some relief to buyers still interested in the market. buying a house.”

If you are looking to buy a home in today’s market, you can visit Credible to compare multiple lenders at once and choose the one with the best interest rate for you.

HERE ARE THE BEST DAYS OF THE YEAR TO SELL YOUR HOME

Monthly mortgage payments increase by 55% per year

Affordability has become a growing concern due to rising house prices and rising interest rates. In fact, it sent monthly mortgage payments up more than 50% for new loans on median-priced homes from a year ago, an expert said.

Real estate markets are hurting under the weight of record prices and rising mortgage rates,” said George Ratiu, senior economist and head of economic research at Realtor.com. “Mortgage applications have fallen as purchases and refinances have seen declines in activity. Buyers of a median-priced home are looking at a monthly mortgage payment 55% higher than it was a year ago. year, adding an additional $695 to their monthly expenses.”

In addition, rising inflation has put increased pressure on consumers and pushed their spending to new heights. Americans can combat these rising costs by finding more affordable housing choices, Ratiu said.

“For many Americans looking for affordable housing stakes, mid-sized cities remain a viable alternative, especially as the number of homes for sale has increased, providing new options,” Ratiu said. “The overarching challenge is balancing the ability to find a good-priced home, which often means traveling further from city centres, with the potential need to get to an office.

“It is up to businesses to maintain flexibility for a workforce that is squeezed from all sides at once, or at risk of losing employees. The economic outlook hinges heavily on the well-being of the American consumer,” he said. -he declares.

If you are looking for a home in today’s market, you can contact Credible to speak to a mortgage expert and get all your questions answered.

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

]]>
Review of TriState Capital (NASDAQ:TSC) and Central Valley Community Bancorp (NASDAQ:CVCY) https://michiganparanormalencounters.com/review-of-tristate-capital-nasdaqtsc-and-central-valley-community-bancorp-nasdaqcvcy/ Sat, 11 Jun 2022 20:10:47 +0000 https://michiganparanormalencounters.com/review-of-tristate-capital-nasdaqtsc-and-central-valley-community-bancorp-nasdaqcvcy/ Capital of the three States (NASDAQ: TSC – Get a rating) and Central Valley Community Bancorp (NASDAQ: CVCY – Get a rating) are both small cap finance companies, but which is the better investment? We’ll compare the two companies based on the strength of their profitability, dividends, risk, institutional ownership, valuation, analyst recommendations and earnings. […]]]>

Capital of the three States (NASDAQ: TSCGet a rating) and Central Valley Community Bancorp (NASDAQ: CVCYGet a rating) are both small cap finance companies, but which is the better investment? We’ll compare the two companies based on the strength of their profitability, dividends, risk, institutional ownership, valuation, analyst recommendations and earnings.

Volatility and risk

TriState Capital has a beta of 1.94, indicating that its stock price is 94% more volatile than the S&P 500. In comparison, Central Valley Community Bancorp has a beta of 0.77, indicating that its stock price is 23% less volatile than the S&P 500.

Valuation and benefits

This chart compares the revenue, earnings per share (EPS), and valuation of TriState Capital and Central Valley Community Bancorp.

Gross revenue Price/sales ratio Net revenue Earnings per share Price/earnings ratio
Tri-State Capital $289.94 million 3.55 $78.06 million $1.85 16.53
Central Valley Community Bancorp $82.86 million 2.34 $28.40 million $2.22 7.48

TriState Capital has higher revenue and earnings than Central Valley Community Bancorp. Central Valley Community Bancorp trades at a lower price-to-earnings ratio than TriState Capital, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

76.3% of TriState Capital shares are held by institutional investors. By comparison, 48.9% of Central Valley Community Bancorp’s shares are held by institutional investors. 7.9% of TriState Capital shares are held by insiders. By comparison, 15.1% of Central Valley Community Bancorp’s shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers, and hedge funds believe a company is poised for long-term growth.

Analyst Notes

This is a breakdown of recent recommendations and price targets for TriState Capital and Central Valley Community Bancorp, as provided by MarketBeat.com.

Sales Ratings Hold odds Buy reviews Strong buy odds Rating
Tri-State Capital 0 1 0 0 2.00
Central Valley Community Bancorp 0 1 0 0 2.00

TriState Capital currently has a consensus target price of $31.00, indicating a potential upside of 1.37%. Central Valley Community Bancorp has a consensus target price of $24.00, indicating a potential upside of 44.58%. Given Central Valley Community Bancorp’s likely higher upside, analysts clearly believe that Central Valley Community Bancorp is more favorable than TriState Capital.

Profitability

This table compares the net margins, return on equity and return on assets of TriState Capital and Central Valley Community Bancorp.

Net margins Return on equity return on assets
Tri-State Capital 27.20% 13.05% 0.66%
Central Valley Community Bancorp 32.53% 11.53% 1.14%

Summary

TriState Capital beats Central Valley Community Bancorp on 7 out of 12 factors compared between the two stocks.

About TriState Capital (Get a rating)

TriState Capital Holdings, Inc. operates as a bank holding company for TriState Capital Bank which provides various commercial and private banking services to middle market businesses and high net worth individuals in the United States. The Company operates through two segments, banking and investment management. Its deposit products include checking accounts, money market deposit accounts and certificates of deposit, as well as deposit account certificate registry services and insured cash sweeping services. The Company also offers loans secured by cash, marketable securities, cash value life insurance, residential property or other financial assets, as well as commercial and industrial loans, commercial real estate loans, personal loans. , loans on assets, financing of acquisitions. , and letters of credit. In addition, it offers cash and cash management services, such as online balance reporting, online bill payment, remote deposit, cash, transfers and automated clearing house, foreign exchange and controlled disbursement services; and equity and fixed income advisory and sub-advisory services to third-party mutual funds and series trust mutual funds, as well as separately managed accounts comprising primarily ultra-high net worth clients and institutional, including corporations, ERISA plans, Taft-Hartley funds, municipalities, endowments and foundations. Additionally, the company provides cash management services; and capital market services, such as interest rate swaps and investment management products, as well as the wholesale and marketing of investment products and services. It offers its products and services through its main office located in Pittsburgh, Pennsylvania, as well as through its four additional representative offices in Cleveland, Ohio; Philadelphia, Pennsylvania; Edison, New Jersey; and New York, New York. The company was incorporated in 2006 and is headquartered in Pittsburgh, Pennsylvania.

About Central Valley Community Bancorp (Get a rating)

Central Valley Community Bancorp LogoCentral Valley Community Bancorp operates as a bank holding company for Central Valley Community Bank which provides various commercial banking services to small and medium businesses and individuals in the Central Valley region of California. The company accepts demand, savings and term deposits; certificates of deposit; and non-interest bearing demand deposits, as well as NOW and money market accounts. Its lending products include commercial and industrial loans, as well as loans secured by agricultural production and livestock; owner-occupied and investor-occupied commercial real estate, building construction and other land, agricultural real estate and other real estate loans; and equity loans and lines of credit, and installment loans and other consumer loans. The company also offers domestic and international wire transfers, safe deposit boxes, internet banking and other usual banking services. As of December 31, 2021, the company operated through a network of 20 full-service banking offices in Cameron Park, Clovis, Exeter, Folsom, Fresno, Gold River, Kerman, Lodi, Madera, Merced, Modesto, Oakhurst, Prather, Roseville, Sacramento , Stockton and Visalia. Central Valley Community Bancorp was founded in 1979 and is based in Fresno, California.



Get news and reviews for TriState Capital Daily – Enter your email address below to receive a concise daily summary of breaking news and analyst notes for TriState Capital and related companies with MarketBeat.com’s free daily email newsletter.

]]>
What’s really going on with revolving consumer credit? https://michiganparanormalencounters.com/whats-really-going-on-with-revolving-consumer-credit/ Wed, 08 Jun 2022 04:02:49 +0000 https://michiganparanormalencounters.com/whats-really-going-on-with-revolving-consumer-credit/ Beyond some of the dodgy stuff in the headlines today. By Wolf Richter for WOLF STREET. Revolving credit balances in April, unadjusted for seasonality — so actual dollar balances — were $1.04 trillion, according to the Federal Reserve this afternoon. This includes credit card balances, personal loans, etc., and was up just 2.6% from April […]]]>

Beyond some of the dodgy stuff in the headlines today.

By Wolf Richter for WOLF STREET.

Revolving credit balances in April, unadjusted for seasonality — so actual dollar balances — were $1.04 trillion, according to the Federal Reserve this afternoon. This includes credit card balances, personal loans, etc., and was up just 2.6% from April 2019.

Let that sink in for a moment: over a three-year period, revolving credit grew by only 2.6%, despite CPI inflation of 13% over those three years. In other words, revolving credit growth fell sharply in inflation-adjusted terms.

The huge dip between 2019 and today stems from the pandemic when consumers used their stimulus money to pay off their credit cards and when they cut spending on discretionary services, such as sporting and entertainment events, international travel or elective healthcare services such as cosmetic surgery. , visits to the dentist, etc. During this period, delinquencies dropped to record lows.

Revolving loan balances are barely above the peaks of 2007 and 2008, despite 14 years of population growth and 40% CPI inflation in those years! In other words, revolving credit just isn’t the kind of problem it was in 2008. It’s a sideshow.

In terms of growth – in terms of additional borrowed money being spent in the economy – it was miniscule. There has actually been no growth since December. And after refunds in January and February, following the annual holiday shopping spree, total balances rose just $14 billion in March and $17 billion in April, for a total of 31 billions of dollars.

That $31 billion growth in March and April didn’t even offset the $32 billion in refunds in January and February. These are actual dollars, not seasonally adjusted notional dollars.

In terms of adding to the growth of the economy: total consumer spending is currently growing at an annual rate of $17 trillion, with a T. So what would be the additional spending growth resulting from the increase in revolving credit? It was a rhetorical question. It’s tiny.

Since 2019, consumer spending has increased by 19% and revolving credit has only increased by 2.9%, both non-inflation-adjusted by 13% over the period. In other words, revolving credit growth has been significantly below inflation and massively below consumer spending growth.

This shows that consumers rely less on revolving credit.

Credit cards and some types of personal loans, such as payday loans, are the most expensive forms of credit, and they often come with usurious interest rates. Credit card rates can exceed 30%. And the Americans have understood this. If they need to finance purchases, many consumers resort to cheaper loans, including cash refinancing of their mortgages.

And a lot of consumers are using their credit cards as payment methods, and they’re paying them back every month. This is what these relatively low balances show.

The beautiful seasonal adjustments.

Seasonal adjustments to the real dollar revolving loan balances are designed to correspond to the peak month of each year, which is December. In other words, there is no seasonal adjustment for December, but the other 11 months are always adjusted upwards, like every month was December at the height of the holiday shopping frenzy. And that creates the bizarre pattern where, for 11 months of the year, seasonal adjustments grossly overestimate the actual revolving credit balances.

In this graph, the green line represents the seasonally adjusted balances. Note how it overlaps every December. The red line represents actual balances, not seasonally adjusted. And note the crazy disconnect between the two lines over the past four months:

The consumer credit data the Federal Reserve released today was its limited monthly set, just two incomplete summary categories of a complex phenomenon: “revolving credit,” which I discussed above, and “non-revolving credit”, which is made up of car loans and student loans combined, but not separated, and does not include mortgages, HELOCs and other debts.

Individual car loan, student loan, mortgage and HELOC categories are only published quarterly by the New York Fed, and I’ve discussed that for the first quarter, covering all categories, including mortgages and HELOCs, and delinquency rates for each category, as well as collections, foreclosures, and third-party bankruptcies, as part of my quarterly review of consumer credit in America.

This quarterly data shows credit card balances by themselves, as well as other revolving consumer loans:

  • Credit card balances, at $840 billion in Q1, are back to where they were in Q1 2008 and lower in Q1 2020 and Q1 2019 (red line).
  • Other consumer loans (personal loans, personal loans, etc.), at $450 billion, were below levels well before the financial crisis (green line):

In other words, revolving consumer credit was roughly flat 13 years ago, despite 13 years of population growth and 40% inflation. In real and per capita terms, it has become a sideshow.

Of course, some people are in over their heads and they will fall behind. It always happens. But in the overall spectrum of credit risk, that’s not a big deal anymore. Consumers have become much smarter since the financial crisis. They borrow through much cheaper mortgages and car loans, and proportionally much less at those rip-off rates that come with credit cards and personal loans.

Do you like to read WOLF STREET and want to support it? You use ad blockers – I completely understand why – but you want to support the site? You can donate. I greatly appreciate it. Click on the mug of beer and iced tea to find out how:

Would you like to be notified by e-mail when WOLF STREET publishes a new article? Register here.

]]>
What are the requirements for a HELOC? – Forbes Advisor https://michiganparanormalencounters.com/what-are-the-requirements-for-a-heloc-forbes-advisor/ Fri, 03 Jun 2022 08:00:09 +0000 https://michiganparanormalencounters.com/what-are-the-requirements-for-a-heloc-forbes-advisor/ Editorial Note: We earn a commission on partner links on Forbes Advisor. Commissions do not affect the opinions or ratings of our editors. A home equity line of credit (HELOC) can be a good option if you’re looking to tap into the equity in your home, for example, to pay for home renovations or consolidate […]]]>

Editorial Note: We earn a commission on partner links on Forbes Advisor. Commissions do not affect the opinions or ratings of our editors.

A home equity line of credit (HELOC) can be a good option if you’re looking to tap into the equity in your home, for example, to pay for home renovations or consolidate debt. As with other loans, there are common requirements to qualify for a HELOC, such as having a good credit rating and sufficient equity in your home.

If you’re wondering how to get approved for a HELOC, here’s what you need to know.

How does a HELOC work?

A HELOC is a type of revolving line of credit that you can withdraw and repay repeatedly, like a credit card. Although guidelines may vary, you can typically access around 80% of your home’s equity with a HELOC. Repayment terms can be up to 30 years, depending on the lender.

Keep in mind that unlike a credit card, the duration of a HELOC is divided into a drawdown and redemption period. During the drawdown period, which typically ranges from five to 15 years, you can make withdrawals from your HELOC up to your credit limit and are only required to make minimal interest payments.

Thereafter, you will not be able to make any more withdrawals and will have to repay any amount borrowed during your repayment period, which usually ranges from 10 to 20 years.

HELOC requirements

Although the eligibility criteria for a HELOC may vary by lender, there are some common requirements.

Have some equity in your home

Equity is the amount you have left after dividing what you owe on your mortgage from the current value of your home. To qualify for a HELOC, you must have at least 15% to 20% equity in your home.

Keep in mind, however, that there are limits to how much you can borrow with a HELOC, regardless of how much capital you have. The limit offered to you will be based on your loan-to-value (LTV) ratio, which you can calculate by dividing your mortgage balance by the current value of your home.

Lenders will also look at all of your debt on the property against its value, called the combined loan-to-value ratio (CLTV). Most lenders want your CLTV no higher than 85% to qualify for a HELOC, although some lenders will tolerate CLTVs as high as 90%. To calculate your CLTV, add up all the loans secured on your property (like your first mortgage, any home equity loans, etc.), then divide by the value of your home.

Have good credit

Lenders look at your credit score and history to determine if you are a risky investment. To be approved for a HELOC, your credit score must be between 600 and 600, although a score of 700 or higher is even better.

Having good credit can also qualify you for a better interest rate. In general, the higher your credit score, the lower your rate.

Show sufficient income and documentation

Lenders want to see that you can afford to repay, so you must show that you have enough income to qualify for a HELOC. You will need to provide documents that show your employment and income information. The income and accompanying documents could include:

  • Employee salaries: W-2 and most recent payslips
  • Self-employment : Latest federal tax returns
  • Social security benefits: Letter of verification of benefits from your Social security account
  • Other benefits or income: Pension award letters, benefit statements, or 1099 forms

Show a solid payment history

Another way for the lender to determine how good a borrower you are is by reviewing your payment history. Although your payment history is a major factor in your credit score, the lender might pay special attention to it over the other components of your credit score.

Because a HELOC is technically a second mortgage, the lender will want to be especially sure that you will reliably repay what you owe.

Have a low amount of debt

Your debt-to-income ratio (DTI) is the amount you owe on monthly debt payments (like your mortgage, credit cards, etc.) relative to your monthly income. Considering your DTI ratio helps lenders determine if you can reasonably handle taking on more debt. This ratio is essential in determining if you qualify for a loan.

To qualify for a HELOC, you will generally need a DTI ratio no higher than 43% to 50%, although some lenders may require ratios lower than this.

How to apply for HELOC

If you’re ready to apply for a HELOC, follow these five steps:

  1. Compare lenders. Be sure to shop around and compare your options with as many lenders as possible to find the right HELOC for your needs. Consider not only interest rates, but also repayment terms, fees charged by the lender, and eligibility requirements.
  2. Gather your documentation and complete the application. After choosing a lender, you will need to complete a full application. Many lenders offer an online application option, while some traditional banks and credit unions may require a visit to your local branch. Be ready to provide the required documents, such as bank statements, W2 forms or payslips.
  3. Have your house appraised. If your income and credit are approved, the lender will usually request an appraisal to calculate the current value of your home. In most cases, the lender will schedule the home appraisal, but be prepared to pay the appraisal fee, usually $300 to $400 for a single family home.
  4. Prepare for closing. After your home is appraised, your lender will let you know if you’ve been fully approved for a HELOC and provide additional details, such as your credit limit and interest rate. If you decide to continue, you will need to sign your loan documents. Keep in mind that all closing costs will be added to your loan amount.
  5. Access your funds. After the loan closes, you will have three business days to withdraw from the loan if you change your mind. After that, you will have access to your HELOC and can start making withdrawals at your leisure.

How long does it take to get a HELOC?

It usually takes about two to four weeks to complete the process of applying for and closing a HELOC. In some cases, it can take up to six weeks, depending on the lender and the complexity of your application.

Alternatives to a HELOC

If a HELOC isn’t right for you, there are a few alternatives to consider.

Personal loan

A personal loan can be used to cover almost any personal expense. Unlike HELOCs, most personal loans are unsecured, which means you don’t have to worry about collateral.

However, since this type of loan is riskier for the lender, you could end up with a higher interest rate compared to what you would get with a HELOC.

Refinancing by collection

With a cash refinance, you’ll pay off your first mortgage with a second loan for more than you owe. You’ll then get the difference as a lump sum to use as you wish, minus any closing costs or fees.

Unlike a HELOC, a cash refinance won’t earn you an extra monthly payment because you’re simply replacing your mortgage with another loan. However, you still risk losing your home if you cannot meet your payments.

Home Equity Loan

You can also consider tapping into your home’s equity in another way with a home equity loan. Unlike a HELOC which gives you access to a revolving line of credit, a home equity loan is paid out in a lump sum, similar to a personal loan.

Home equity loans usually come with fixed interest rates, which means your rate and payment will stay the same for the life of your loan. Since this type of loan is secured by your home and poses less risk to the lender, you will likely get a lower interest rate than you would be offered on a personal loan. However, keep in mind that this also means the bank could foreclose on your home if you fail to make your payments.

Find the best home equity lenders of 2022

]]>
Hispanic homebuyers most likely to seek riskier alternative financing https://michiganparanormalencounters.com/hispanic-homebuyers-most-likely-to-seek-riskier-alternative-financing/ Tue, 31 May 2022 04:05:58 +0000 https://michiganparanormalencounters.com/hispanic-homebuyers-most-likely-to-seek-riskier-alternative-financing/ Rising home prices and mortgage rates have made it harder for many first-time homebuyers and prompted some to consider other forms of financing. A investigation from Pew Research found that Hispanic homebuyers are most likely to seek non-traditional financing, which is almost always riskier than a standard mortgage. What the data show According to Pew […]]]>

Rising home prices and mortgage rates have made it harder for many first-time homebuyers and prompted some to consider other forms of financing. A investigation from Pew Research found that Hispanic homebuyers are most likely to seek non-traditional financing, which is almost always riskier than a standard mortgage.

What the data show

According to Pew research, 34% of Hispanic homeowners have used non-mortgage financing at some point when purchasing their home. Including land contracts, lease-purchase agreements, seller-financed mortgages, and real estate or furniture loans, which are most common for manufactured homes.

By comparison, about 23% of non-Hispanic black borrowers used alternative financing for their home purchases, while 19% of white homebuyers did the same.

Disparities in alternative financing reflect disparities in the broader housing market.

—Tara RocheProperty Finance Manager, The Pew Charitable Trusts

“It’s not always that the owner is not ready for the mortgage,” adds Roche, author of the research. Instead, the financial system incentivizes lenders to take out larger mortgages. Low balance loans are proportionally more expensive to originate, which means they are less profitable – and therefore less attractive – to most banks and other institutions.

“It’s very clear that low-to-moderate income homebuyers are the ones most in need of small mortgages, so this has a disproportionate impact on those people,” Roche said. “That’s where you see the most alternative financing happening.”

The Pew report suggests alternative financing is most common for loans worth less than $150,000.

Risks of alternative real estate financing

Although non-mortgage arrangements can be a route to home ownership for some, they are often riskier than traditional mortgages and generally offer fewer protections for the borrower.

“One of the most important things is when and how legal ownership is transferred,” Roche says. Some alternative financing methods, for example, prevent the buyer from becoming the legal owner of the property until the balance is fully paid off.

“Without the ability to demonstrate legal ownership of a home, alternative borrowers face a higher risk of eviction,” Roche says, adding that non-mortgage borrowers also had fewer legal protections and relief mechanisms during the mortgage. COVID-19 pandemic. For example, owners who used alternative financing were mostly not eligible for forbearance.

credit scores and incomes and less family wealth, and are more likely to live in intergenerational households than their white counterparts, according to Zhu.

In order to make home ownership more accessible, Zhu says, local, state and national governments should strive to expand down payment assistance and homebuyer education.

“Being able to downpay is very difficult” for buyers who have less generational wealth behind them, Zhu says, so “increasing visibility and educational opportunities” is an important way to address this disparity.

Zhu adds that reinventing credit and income verification systems for mortgages could help more people access homeownership.

“Can we also take a look at the lease payments on time?” Zhu said. “Can we take a look at the other income? [Hispanic borrowers] are very likely to be employed in the gig economy, which means they are more likely to have a 1099 instead of a W-2. Unfortunately, 1099 income is very difficult to consider when applying for a home loan. Can we change this?

Fannie Mae and Freddie Mac, who back the majority of mortgages in the United States, now allow rent payment history on loan applications, although it’s unclear how well known or put into practice. For gig workers, lenders generally tend to be wary of income that may seem inconsistent with a regular salary.

Finding a way to account for the incomes of those who might live in the house but not be on the mortgage would also benefit those who live in larger intergenerational households.

Without these solutions, many homebuyers will have to continue to find financing through riskier alternative means.

“Because Latinos have such a desire for homeownership, they are sometimes willing to take on riskier financing to achieve it,” said Gary Acosta, co-founder and CEO of the National Association of Homeowners. real estate, in a statement. “What matters most is that every borrower, whether Latino or not, always receives the most competitive financing available to them.”

Tips for preparing your mortgage

No matter how you identify yourself, financing a home purchase is a long process. You can help streamline things and save money in interest if you work for boost your credit score well before you apply and budget for your home purchase in advance.

Unfortunately, not all aspects of home financing are within your control. Mortgage rates and home prices are determined by the invisible hand of the market, and it can be more difficult for first-time buyers who are not from homeowner families to compete.

“Parental homeownership is very important,” Zhu said. “We find that inheritance helps a lot in home ownership.”

At the end of the line

The existing housing finance system encourages lenders to take out high-value mortgages, leading many low-income buyers to consider alternative financing. Hispanic buyers are particularly likely to finance their purchase by means other than a traditional mortgage, which can increase the risk of foreclosure and the overall cost of purchase. Experts say a broad reinvention of the mortgage market is needed to fully address these disparities. In the meantime, the homeownership rate for Hispanics continues to rise.

]]>
4 signs that your finances are healthy https://michiganparanormalencounters.com/4-signs-that-your-finances-are-healthy/ Sat, 28 May 2022 13:00:34 +0000 https://michiganparanormalencounters.com/4-signs-that-your-finances-are-healthy/ Image source: Getty Images What is your financial score? Key points Poor financial health is directly linked to high levels of stress and anxiety. Answering these four currency signs can help you determine if your finances are in good shape. Your emergency and retirement savings, debt ratio and credit score are key elements in determining […]]]>

Image source: Getty Images

What is your financial score?


Key points

  • Poor financial health is directly linked to high levels of stress and anxiety.
  • Answering these four currency signs can help you determine if your finances are in good shape.
  • Your emergency and retirement savings, debt ratio and credit score are key elements in determining your financial health.

Tracking our health is much easier with today’s technology. There are apps and devices that can measure your fitness level and track the number of calories you’ve consumed and burned. But what about tracking your finances?

Unfortunately, 73% of Americans say their finances are the biggest stressor in their lives and 65% say they don’t know how much they spent in the last month. Lack of financial literacy is linked to high levels of stress and anxiety. Here are four money signs that make up your financial health. Evaluate yourself and follow your financial situation!

1. Emergency savings

Nearly 6 in 10 Americans can’t afford an unexpected $1,000 bill. This means that if an unexpected expense arises, many of us have to borrow to cover it. Are you well prepared?

  1. 10 points: six months or more of your household expenses saved
  2. 9 points: three to five months saved
  3. 8 points: one to three months saved
  4. 7 points: less than a month

Goal: Having an adequate emergency fund is an important part of your financial health. The amount you should have in your emergency fund depends on factors such as your current income and recurring expenses. Most experts recommend setting aside three to six months of expenses. If you’re a freelancer or gig worker, you might want to set aside even more.

2. Retirement savings

About half of Americans (49%) are not financially ready to retire and have no retirement savings. You want to save and invest enough to provide yourself with sufficient income without having to work. Are you saving enough? First, determine how much money you will need in retirement. You can then use a retirement calculator to help you figure out how much you need to save to meet your retirement goals. How does the number compare to what you are currently contributing to savings?

  1. 10 points: Save 100% of your annual contribution goal
  2. 9 points: save at least 90%
  3. 8 points: save at least 80%
  4. 7 points: save less than 70%

Goal: Compound interest will help you grow your savings. The best time to invest may have been in the past, but the second best time to invest is now. Even if it’s a small amount, take advantage of an IRA, 401(k), etc. A small amount can go a long way. If you are in your 30s try to save 10% of your income and if you are in your 40s or 50s try to save 15%.

3. Debt to income ratio

This number shows how well you manage your debt. A whopping 60% of risk managers cited high debt-to-income (DTI) ratios as their top concern when approving a loan. You can calculate your ratio by adding your minimum monthly debt payments and dividing them by your gross monthly income. For example, if the sum of your loans (mortgage, car, etc.) and your minimum monthly credit card payments is $2,000, and your monthly salary is $4,000, then your DTI ratio is 50%. This means that half of your income will be used to pay off your debts, while making only minimal payments on your credit card! What is your DTI ratio?

  1. 10 points: DTI of 25% or less
  2. 9 points: DTI from 26% to 36%
  3. 8 points: DTI from 37% to 43%
  4. 7 points: More than 43% (in most cases, this is the highest rate to qualify for a mortgage on favorable terms)

Purpose: Your DTI also plays an important role in your credit score. Pay off your debt and increase your income. Both will decrease your DTI. There are several debt repayment strategies you can use, such as debt snowballing or debt avalanche. Avoid taking on more debt and look for a side gig to boost your income if possible.

4. Credit score

Your credit score is one of the most important financial numbers. Your score determines the interest rate on your loans and credit cards. The difference between a low score and a high score can be hundreds of thousands of dollars in interest paid on your loans over your lifetime! Your credit score ranges from 300 to 850. What is your score?

  1. 10 points: score of 750 or more
  2. 9 points: Score between 720 and 749
  3. 8 points: Score between 620 and 719
  4. 7 points: score below 620

Goal: Your payment history represents 35% of your score, your debt ratio 30%, your credit history 15%, your credit composition 10% and new credit applications 10%. To increase your score, be sure to pay all your bills on time, catch up on overdue accounts, request a credit limit increase, and check your credit report regularly for any errors. Experian offers a new service where you can get credit to pay for your phone, utilities, and bills like Netflix.

Your end result

Add your total score and divide it by 4. If your score is 9 or more, congratulations, you are in excellent financial health! Make sure you keep working to stay there!

If your score is between 8 and 9, there is room for improvement, but you have made good progress, so keep going. If your score is below 8, it’s important to prioritize improving your financial health. The above steps may help you. Keep improving your finances until you can roll a 10.

Alert: The highest cash back card we’ve seen now has 0% introductory APR through 2023

If you use the wrong credit or debit card, it could cost you dearly. Our expert loves this top pick, which features an introductory APR of 0% until 2023, an insane cashback rate of up to 5%, and all with no annual fee.

In fact, this map is so good that our expert even uses it personally. Click here to read our full review for free and apply in just 2 minutes.

Read our free review

]]> When to consider getting a personal loan as a student https://michiganparanormalencounters.com/when-to-consider-getting-a-personal-loan-as-a-student/ Wed, 25 May 2022 23:51:39 +0000 https://michiganparanormalencounters.com/when-to-consider-getting-a-personal-loan-as-a-student/ You may have used federal or private student loans to cover tuition, housing, textbooks, and other higher education expenses. Unfortunately, you may still need additional funds to survive the rest of the semester or to cover a financial emergency. Credit cards might be an option, but a personal loan might be better. They often come […]]]>

You may have used federal or private student loans to cover tuition, housing, textbooks, and other higher education expenses. Unfortunately, you may still need additional funds to survive the rest of the semester or to cover a financial emergency.

Credit cards might be an option, but a personal loan might be better. They often come with much lower interest rates than credit cards, and some lenders offer fast financing to help get you back on track right away. Yet, before deciding if a personal loan is right for you, there are downsides to consider. Some online personal lenders offer services specifically for students.

Student and Personal Loans

Personal loans and student loans can help you survive financially while in school. However, having both can be dangerous if it’s time to pay off what you owe and your income is low.

With federal loans, you may qualify for income-based repayment plans. However, private lenders are not always so generous. If you fall behind on your loan repayments, you risk hurting your credit rating, regardless of your type of loan.

Personal loans differ from student loans in several ways:

  • Type of loan: Student loans are unsecured, which means they are not secured by collateral. Many personal loans are also unsecured, but some are secured and require collateral to secure the funding.
  • Eligibility criteria: You will generally need good or excellent credit and a stable source of income to qualify for a personal loan on competitive terms or a private student loan. However, federal student loans do not have the same stringent eligibility criteria.
  • Use: You are free to use personal loans as you see fit. But federal and private student loans should only be used for higher education expenses, including tuition, fees, books, housing, and supplies.
  • Funding: Personal loans are deposited into your bank account and student loans are sent to the school’s financial aid office.

Ultimately, student loans are ideal if you are looking for funds to cover college-related expenses. But if you need a more flexible financing option to pay for other types of expenses, a personal loan may be better. Keep in mind that many lenders will require a co-signer if you don’t have a steady source of income and a good or excellent credit rating.

Companies offering student personal loans

You may qualify for a personal loan as a student through these fintech startups, even if you are not currently employed or have little or no credit history.

MPOWER funding

Fintech start-up MPOWER Financement is aimed at high-potential students who are generally not eligible for loans from traditional banks. It offers fixed rate loans to more than 190 nationalities, including Americans, who attend an accredited school in the United States or Canada without the need for collateral. You also don’t need a co-signer or credit history to qualify.

Loan amounts range from $2,001 to $100,000 (total) and interest rate discounts of up to 1.50% are available. Once the loan is approved, the funds are sent directly to the university. You will only make interest payments during your studies and six months after you graduate.

If you want to prepay your loan, there are no prepayment penalties. Best of all, loan repayments will be reported to credit bureaus to help build your credit history.

KoraCash

KoraCash is available to students and recent graduates with an .edu email address. You must also be at least 18 years old with a valid social security number and an acceptable credit history.

It’s offered by fintech startup Kora, and you could qualify for up to $2,000 with a loan term of no more than 12 months. Loan payments are reported to major credit bureaus – Experian, TransUnion and Equifax – to help you start building a positive credit history.

Kora currently lends in Arizona, Arkansas, California, Florida, Illinois, Iowa, Maryland, Michigan, Minnesota, Missouri, Nebraska, New Jersey, New York, North Carolina, Ohio, Pennsylvania, South Carolina, Tennessee, Utah, Washington and Wisconsin. If you do not reside in one of these states, it is best to pursue other options.

Other personal loan options

If you’re unable to qualify for a personal loan on your own, consider bringing in a co-signer to boost your chances of approval. You can also ask your parents or another relative to take out a loan on your behalf or lend you the funds directly.

Home equity loans and home equity lines of credit are another option for getting the funds you need if you own a home. But they can be risky because your home is used as collateral. Additionally, it can be difficult to get approved if your income or credit score is low.

Advantages and disadvantages of getting a personal loan as a student

You may qualify for a personal loan as a student, but it may not be a wise financial decision. Consider these pros and cons before going ahead.

Advantages

  • Fast funding times: It can take a while for student loan proceeds to disburse, but most personal lenders offer fast turnaround times.
  • Lower interest rates than credit cards: The average personal loan interest rate is 10.28%, compared to the average credit card APR of 16.13%.

Disadvantages

  • More expensive than student loans: If you can get a federal student loan, you might get a better interest rate than a personal loan. The interest rate on directly subsidized and directly subsidized federal student loans is currently 3.73% and 5.28% for undergraduate and graduate students, respectively. You will pay between 1% and 13% for a private student loan.
  • No postponement: You will start repaying your personal loans the following month, but most student loan providers give you the option of deferring payments until you finish your studies.
  • Your assets could be at risk: If you benefit from a secure personal loan, you risk losing your assets if you fall behind on your monthly payments.

At the end of the line

If you’re struggling financially, a personal loan could be a less expensive option to get the funds you need. But it’s not without risk, and you should consider the pros and cons before applying. Depending on your situation and how you plan to use the money, a student loan or another source of financing might be a better choice.

]]>