Personal Loans – Fast Paths http://fastpaths.com/ Wed, 22 Sep 2021 10:00:00 +0000 en-US hourly 1 https://wordpress.org/?v=5.8 https://fastpaths.com/wp-content/uploads/2021/05/default.png Personal Loans – Fast Paths http://fastpaths.com/ 32 32 Nearly one in three parents have never told their child about the FAFSA https://fastpaths.com/nearly-one-in-three-parents-have-never-told-their-child-about-the-fafsa/ https://fastpaths.com/nearly-one-in-three-parents-have-never-told-their-child-about-the-fafsa/#respond Wed, 22 Sep 2021 10:00:00 +0000 https://fastpaths.com/nearly-one-in-three-parents-have-never-told-their-child-about-the-fafsa/ RIVERWOODS, Illinois – (COMMERCIAL THREAD) – An annual Discover Student Loans survey found that 29% of parents had never told their child about asking for free federal student aid.® (FAFSA)I and 22% discussed it only once or twice. The FAFSA, which becomes available on October 1st, is a free annual app giving families access to […]]]>

RIVERWOODS, Illinois – (COMMERCIAL THREAD) – An annual Discover Student Loans survey found that 29% of parents had never told their child about asking for free federal student aid.® (FAFSA)I and 22% discussed it only once or twice. The FAFSA, which becomes available on October 1st, is a free annual app giving families access to the largest source of financial aid to help pay for college educationii. For many, this is the best way to access federal assistance.

Given the lack of discussions families have about FAFSA, it’s no surprise that only 37% of families responded that they are very familiar with FAFSA and plan to complete it this year. The survey also found that 31% of parents who planned to complete the FAFSA still had not completed it by May 2021 – a month before its deadline in June.

“It’s understandable that families feel anxious when it comes to paying for college. In fact, 30% of parents said that applying for scholarships, grants, loans, and other forms of financial assistance caused their child to be anxious. When it comes to funding a college education, the sooner families can start saving and having those conversations, the better, ”said Manny Chagas, vice president of Discover Student Loans. “The same goes for the FAFSA. Applying early can provide families with opportunities for federal, state, and institutional support, such as grants and scholarships, as some schools provide financial assistance on a first-come, first-served basis.

Beyond a lack of discussion about the FAFSA among family members, Discover’s survey uncovered myths and misconceptions that can create barriers for families who complete the FAFSA application, including:

  • Only 20% of parents know the FAFSA is available in October, while just over half (51%) believe the FAFSA is available year round. Both statistics remain relatively unchanged over the past three years.

  • More than a third (36%) of parents think it takes 1-3 hours to complete the FAFSA. However, most families complete the FAFSA in less than an hour. iii

  • More than 4 in 10 families (42%) who are not planning on completing the FAFSA say it’s because they don’t believe they will qualify for federal assistance. In fact, 86% of first-time full-time students in 4-year public colleges received assistance. iv

To navigate the FAFSA filing process, half of parents (50%) say they have taken advantage of FAFSA guides and online resources, while 29% say they use material sent by a child’s school and 28% cite secondary school guidance counselors as a resource. .

For families looking for more resources, Discover Student Loans provides free tools and information to help them plan and navigate their college fundraising journey. To begin with, the FAFSA Assistant Tool from Discover Student Loans is an interactive resource designed to help families prepare to complete their FAFSA application. After answering a few questions, the tool provides personalized advice and considerations to help families organize themselves for the process. Families can also refer to the FAFSA Dos and Don’ts as an additional resource – all found on the Discover Student Loans site website which provides useful content for students, parents and counselors. For families looking for a way to compare college costs, check out Potential Careers and College Majors Earnings to help determine college ROI, they can visit the award-winning site My College Plan tool.

For more information on Discover Student Loans, please visit www.discover.com/student-loans.

Methodology

All figures, unless otherwise noted, are from a Dynata (formerly Research Now / SSI) survey conducted on behalf of Discover Financial Services. The survey was conducted online May 10-15, 2021, with a total sample of 1,000 U.S. parents of college students (ages 16-18). The margin of sampling error is ± 2.53 percentage points with a 95% confidence level.

About Discover

Discover Financial Services (NYSE: DFS) is a digital banking and payments company with one of the most recognized brands in US financial services. Since its inception in 1986, the company has grown into one of the largest card issuers in the United States. The company issues the Discover Card, a pioneer in cash rewards in the United States, and offers private student loans, personal loans, home loans, checking and savings accounts, and certificates of deposit through its banking operations. It operates the Discover Global Network comprised of Discover Network, with millions of merchant and cash access points; PULSE, one of the country’s main ATM / debit networks; and Diners Club International, a global payment network accepted worldwide. For more information visit www.discover.com/enterprise.

I FAFSA is a registered trademark of the US Department of Education and is not affiliated with Discover Student Loans.

ii https://studentaid.gov/about

iii https://studentaid.gov/help/how-long

iv https://nces.ed.gov/programs/coe/indicator/cuc


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We used our IRA to buy a house for cash. Should we borrow to pay off the IRA or take the tax hit? https://fastpaths.com/we-used-our-ira-to-buy-a-house-for-cash-should-we-borrow-to-pay-off-the-ira-or-take-the-tax-hit/ https://fastpaths.com/we-used-our-ira-to-buy-a-house-for-cash-should-we-borrow-to-pay-off-the-ira-or-take-the-tax-hit/#respond Tue, 21 Sep 2021 17:25:05 +0000 https://fastpaths.com/we-used-our-ira-to-buy-a-house-for-cash-should-we-borrow-to-pay-off-the-ira-or-take-the-tax-hit/ Our goal here at Credible Operations, Inc., NMLS number 1681276, referred to as “Credible” below, is to give you the tools and confidence you need to improve your finances. Although we promote the products of our partner lenders who pay us for our services, all opinions are ours. Credible Money Coach Dan Roccato (Feature Film) […]]]>

Our goal here at Credible Operations, Inc., NMLS number 1681276, referred to as “Credible” below, is to give you the tools and confidence you need to improve your finances. Although we promote the products of our partner lenders who pay us for our services, all opinions are ours.

Credible Money Coach Dan Roccato (Feature Film) (Credible)

Credible Operations, Inc. NMLS # 1681276, “Credible”. Not available in all states. www.nmlsconsumeraccess.org.

Dear credible money coach,

We paid cash for our house, but withdrew $ 200,000 from an IRA to help us complete the cash transaction. The $ 200,000 is expected to be repaid within 60 days, or there will be a 10% tax due in April.

We could apply for an equity loan to pay it off now, or wait until April and save enough to pay the 10% tax. All our income is tax free, so the only tax will be $ 20,000 (10% of $ 200,000). Our annual tax-free income is approximately $ 75,000.

What would be the best alternative? – Jan, Nevada

Hi Jan! Thank you for your question and for providing us with additional information in response to our email. Your question is interesting and unusual! While I will do my best to share with you what I know about the tax rules that seem to apply to your situation, I strongly recommend that you consult with a trusted tax professional before deciding how to proceed.

First of all, congratulations on paying cash for your house! Not having a mortgage payment is a huge financial benefit, especially as you approach retirement age – as you told us, you’re over 59 and a half.

You also told us that the house you bought was for $ 590,000 – $ 390,000 was from savings and $ 200,000 from a SINGLE IRA. And, from the additional information you provided, it appears that you generally don’t owe state or federal income tax on your $ 75,000 income. Keep in mind that any income you do not pay tax on may still be considered taxable, at least federally – Nevada, where you live, has no state income tax. .

So, to answer this question, we need to focus on the federal tax implications.

What the IRS Says About IRA Withdrawals

The idea behind tax-efficient retirement accounts like a SINGLE IRA is that you put money into your retirement account when you are actively earning and are in a higher tax bracket. Then, when you retire and are no longer an active employee, your tax bracket will likely be lower and you will pay less tax on the money than you would have paid while you were still working.

The money you withdraw from a SINGLE IRA is not considered a loan. This is considered a withdrawal, and this amount will generally be subject to federal income tax. But you may be able to put that money back into your IRA and avoid the tax implications in certain circumstances.

Generally, you can withdraw money from a SINGLE IRA and not pay tax if you transfer that money to another IRA within 60 days. And, because the IRS recognizes that people sometimes change their minds about opening a new IRA, you can usually put the money back into the original IRA within 60 days and avoid federal tax. on income on the amount.

Tax implications of IRA withdrawals

Keep in mind that when you put money into the IRA, it was pre-tax, so you usually have to pay tax on it when you withdraw it. That said, not all money withdrawn from an IRA is considered taxable and the rules for determining what is and what is not are quite complex.

The 10% you referred to in your original question is actually a penalty that generally applies, in addition to regular income tax, if you withdraw money before you are 59 and a half years old. Since you have passed this age threshold, this penalty should not apply in this case. So the amount you might owe would not be $ 20,000 – 10% x $ 200,000.

You might owe more, and here’s why.

Your $ 200,000 withdrawal will likely be considered taxable income if you do not return it to your IRA by the required time, even if your other income has not been subject to federal income tax in the past. The tax rate that will apply to your withdrawal will be calculated based on your total income for 2021, including your regular income of $ 75,000, the withdrawal of $ 200,000 and any other taxable income you receive that year.

Based on this information, it’s probably a good idea to return the $ 200,000 withdrawal to your IRA within 60 days – or you could face a large tax bill in April 2022. And, since the IRS expects you to pay at least 90% of the tax you owe in a given year before the tax deadline for that year, if the tax you owe is more than 10% of your total tax liability, you may be subject to an underpayment penalty.

Reimbursement options

You asked if you should take a home equity loan for $ 200,000 to repay the money you have withdrawn from your IRA. This can be an option if you can find a lender willing to allow you to leverage that much equity.

Typically, lenders will allow you to borrow up to 85% of the value of your home, less anything you owe on a mortgage. Since you don’t have a mortgage, your home equity is $ 590,000 and 85% of that value is $ 501,500 – far more than you would need to borrow to pay off your withdrawal. IRA. Of course, other factors will also come into play when a lender is deciding how much money they are willing to lend you.

Based on the range of scores you shared with us, I would rate your credit as good to excellent, and you may be able to qualify for a favorable rate on your home equity. Right now, interest rates are low overall, but home equity loan rates can vary widely depending on the lender, your credit, and a host of other factors.

If you decide to go this route, be sure to comparison store for loans from several lenders to improve your chances of finding the best interest rate and the best possible loan deal.

One last word…

As I said at the start of this column, it’s a good idea to consult a tax professional whenever you encounter a situation that could have significant tax consequences. Consult with your accountant or other financial advisor you trust to discuss options that will minimize the impact on your taxes and your overall financial well-being.

Need credible advice on a money-related issue? Email our credible money coaches at moneyexpert@credible.com. A Money Coach could answer your question in a future column.

This article is intended for general informational and entertainment purposes. The use of this website does not create a professional-client relationship. Any information found on or derived from this website should not be substituted for and should not be construed as legal, tax, real estate, financial, risk management or other advice. If you require such advice, please consult a licensed or competent professional before taking any action.

About the Author:

Dan Roccato is a Clinical Professor of Finance, School of Business, University of San Diego, Credible Money Coach personal finance expert, published author and entrepreneur. He has held management positions with Merrill Lynch and Morgan Stanley. He is a recognized expert in personal finance, global securities services and corporate stock options. You can find it on LinkedIn.


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True or false: setting the record straight on SBA loans and FEMA assistance https://fastpaths.com/true-or-false-setting-the-record-straight-on-sba-loans-and-fema-assistance/ https://fastpaths.com/true-or-false-setting-the-record-straight-on-sba-loans-and-fema-assistance/#respond Mon, 20 Sep 2021 23:40:54 +0000 https://fastpaths.com/true-or-false-setting-the-record-straight-on-sba-loans-and-fema-assistance/ The U.S. Small Business Administration (SBA) loan application offers many benefits to Hurricane Ida survivors who seek FEMA disaster assistance. True or false: I can be referred to SBA after applying to FEMA. True: After applying for FEMA disaster assistance, you may be contacted by the SBA. If you are prompted to apply for a […]]]>

The U.S. Small Business Administration (SBA) loan application offers many benefits to Hurricane Ida survivors who seek FEMA disaster assistance.

True or false: I can be referred to SBA after applying to FEMA.

True: After applying for FEMA disaster assistance, you may be contacted by the SBA. If you are prompted to apply for a low interest SBA loan, we encourage you to do so. Applying to the SBA ensures that all options for disaster assistance remain open to you.

True or false: The SBA application can be the basis for referrals to other grant programs.

True: Filing the application allows you to be considered for additional grants. If you apply for a low interest SBA disaster loan and are not eligible, this may open the door to additional FEMA assistance. If the SBA denies the loan application, you may be eligible for additional FEMA assistance to replace essential household items; replace or repair a damaged vehicle; cover storage costs or meet other disaster-related needs.

True or false: I must accept an SBA loan if I am approved.

False: If the SBA determines that you qualify for a loan, you are not required to accept it. However, if you are eligible for an SBA loan and choose not to accept it, additional resources may not be available to you for disaster recovery.

True or false: I have to choose between a FEMA Individual Assistance grant or an SBA loan.

False: Being eligible for an SBA loan does not mean that you are suddenly ineligible for FEMA assistance. There are several important reasons for completing and submitting an SBA application, even if you think you don’t currently need a loan. For example, you may find that you were underinsured for the amount of work required to repair or replace your home. A low interest SBA disaster loan can bridge the gap between your recovery costs and the settlement amount.

True or false: SBA loans are only for businesses.

False: The SBA offers homeowner loans up to $ 200,000 to repair or replace your primary residence. The loans are tailored to your personal financial situation. On a case-by-case basis, the SBA may be able to help you refinance your current mortgage (s).

SBA can help tenants and landlords replace household contents (eg, clothing, furniture, and appliances) and vehicles, called personal property. Homeowners and tenants are entitled to up to $ 40,000 to repair or replace damaged or destroyed personal property.

True or false: SBA loans are available to businesses and nonprofits of any size.

True: Businesses of all sizes and private non-profit organizations can borrow up to $ 2 million to repair or replace damaged or destroyed real estate, machinery and equipment, inventory and other commercial assets. The SBA can also lend additional funds to businesses and homeowners to help cover the cost of improvements to protect, prevent, or minimize the same type of damage from a disaster in the future.

For small businesses, small agricultural cooperatives, small businesses engaged in aquaculture, and most private non-profit organizations of any size, SBA offers economic disaster loans to help meet the fund’s needs of turnover caused by the disaster. Economic Injury Assistance is available to businesses regardless of any material damage.

True or false: There is a deadline for applying for a low interest SBA loan.

True: The deadline for filing property damage claims is October 28, 2021. The deadline for returning economic damages claims is May 31, 2022.

The SBA has set up a virtual disaster loan assistance center that is open Monday through Friday, 7:00 am to 7:00 pm Survivors can contact an SBA customer service representative by e- mail to FOCWAssistance@sba.gov or by phone at 800-659-2955. Survivors can apply online at https://disasterloanassistance.sba.gov.

For the latest information, visit fema.gov/disaster/4611. Follow the FEMA Region 6 Twitter account on twitter.com/FEMARegion6 or on Facebook at facebook.com/FEMARegion6/.



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4 steps a lawyer went through before quitting her 6-figure job https://fastpaths.com/4-steps-a-lawyer-went-through-before-quitting-her-6-figure-job/ https://fastpaths.com/4-steps-a-lawyer-went-through-before-quitting-her-6-figure-job/#respond Mon, 20 Sep 2021 16:29:32 +0000 https://fastpaths.com/4-steps-a-lawyer-went-through-before-quitting-her-6-figure-job/ When Erika Kullberg’s law firm refused to adjust to a family emergency, she knew she had to quit. But first, she made sure she was financially secure, starting with checking her net worth. She saved several months of expenses and lowered her cost of living by moving to a cheaper location. Read more stories from […]]]>
  • When Erika Kullberg’s law firm refused to adjust to a family emergency, she knew she had to quit.
  • But first, she made sure she was financially secure, starting with checking her net worth.
  • She saved several months of expenses and lowered her cost of living by moving to a cheaper location.
  • Read more stories from Personal Finance Insider.

One day, Erika Kullberg earned over $ 200,000 working as a business lawyer. The next one, nothing. “My salary after I quit was zero,” she says.

Kullberg left her law firm after being denied an extension to her tenure as she found herself in the midst of a family emergency. “It was heartbreaking, and I always say I don’t blame the boss… but at that moment I knew I was going to quit,” she told Insider.

Kullberg worked for years to get to where she was at. Her job was intellectually stimulating and she worked on billion dollar transactions daily. But it was also a lot of hard work, it wasn’t always fulfilling and often came with long, unpredictable hours.

“I never made any plans at night because I never knew if I was going to finish my job at 7 or 2 in the morning; there is no predictability in this type of life,” says- she.

It all came to a head when she was denied the extension, and no matter how much she once wanted that life, it no longer served it. So she left.

However, these choices always come with practical considerations; very few people get a 100% pay cut without planning how they’re going to do it. When Kullberg left her law firm – and her salary with it – those were the steps she took to make sure she would still be financially secure.

She assessed her net worth

“The most important thing was to assess my financial situation,” she says. “Take a look at my net worth and figure out how much I have in cash, in retirement accounts, in my emergency fund. “

Kullberg had already paid off his student loans and had no other debt. “It’s really a mathematical thing. How much I spend each month and how many months can I last based on that,” she says.

She considered and used the benefits she could get from her business before quitting

After assessing her personal financial situation, she reviewed the types of benefits she could receive from her business before her last day.

“I also did things like calculate how many vacation days I hadn’t used and look at the health benefits,” she explains. She recommends that others do the same before quitting a full-time job. “Look at the policies: will they pay you for those vacation days, or is it better to use them? “

Knowing that she would lose her company-sponsored health care plan, she also used these benefits before she left. “Go get your teeth treated, do your annual checkup,” she says.

She saved a specific amount of living expenses based on her personal risk tolerance

Kullberg says she built up enough emergency funds to support her for a number of months that she felt comfortable with. That number will vary for everyone, she notes, but experts recommend saving a minimum of three to six months of spending.

“I had a number based on my risk tolerance,” she explains. “I had a number of months that I was very, very comfortable with, so I made sure that was saved.”

Some call it a “waiver fund,” a specific set of savings set aside for situations like the one Kullberg was in. They can be built up long before a person needs to use them, but the point is to have “buy” the freedom to leave a job or situation that is no longer right for you.

Kullberg had accumulated her savings over time by leading a very frugal life, even when she was earning a high salary. “From the start, my mentality was always to pretend I was still a broke law student,” she says.

She changed her lifestyle while working towards her next job

After leaving her law firm, she made some lifestyle changes to save money while working towards her next job. Kullberg intended to start her own business, but it took a while before she made an income.

The most important thing for her was to move from an expensive apartment to a slightly more affordable apartment. “You want to reduce your expenses quickly; lowering your rent is the fastest way to do it, ”she says.

But for the most part, even when he was earning a high income, Kullberg did not live excessively. “Ever since I was in a law firm, I was really thrifty,” she says. First she was a student, then she worked to pay off her student loans, and finally she built her emergency fund.

Although his income increased, his lifestyle was very similar. When she quit her job, she didn’t have to readjust too much.

Kullberg now successfully manages Youtube channel on personal finance and is the founder of Plug and Law, a legal services company.

“Not everyone will necessarily support your decision to make a drastic change,” she says, “but stick with what you want, why you are making such a drastic change and what’s on the other side. for you.”


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Buy now, pay later loans to disrupt the market https://fastpaths.com/buy-now-pay-later-loans-to-disrupt-the-market/ https://fastpaths.com/buy-now-pay-later-loans-to-disrupt-the-market/#respond Mon, 20 Sep 2021 05:03:00 +0000 https://fastpaths.com/buy-now-pay-later-loans-to-disrupt-the-market/ NEW DELHI: Buy now, pay later, otherwise BNPL loans are poised to disrupt the credit market, with technology making it easy for lenders to provide bag-ticket loans, without the risks or costs associated with lending in this category. BNPL refers to the techenable credit that is given to borrowers at the point of sale as […]]]>
NEW DELHI: Buy now, pay later, otherwise BNPL loans are poised to disrupt the credit market, with technology making it easy for lenders to provide bag-ticket loans, without the risks or costs associated with lending in this category.
BNPL refers to the techenable credit that is given to borrowers at the point of sale as a payment option. Unlike credit cards, the credit decision is made on the spot using technology for the amount of the sale.
“With BNPL, banks and other lenders can reinvent credit. It’s like providing sachet-sized lines of credit to customers without having to bear the cost of credit card infrastructure or the extensive personal lending process, ”said Yezdi Lashkari, Founder of Flexmoney Technologies – a company that provides BNPL loans for the best banks in the country.
He added that the platform gives lenders the option of temporarily opening credit windows during festivals and hiking limits for a short time. Besides Flexmoney, there are other players like Paytm, LazyPay, Simpl, Capital Float and ZestMoney, which are active in BNPL. According to a Bernstein report, the BNPL market in India is estimated at $ 15 billion with the potential to reach $ 100 billion by 2025.


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Parent PLUS borrowers steal retirement to fund their children’s college education: survey | New https://fastpaths.com/parent-plus-borrowers-steal-retirement-to-fund-their-childrens-college-education-survey-new/ https://fastpaths.com/parent-plus-borrowers-steal-retirement-to-fund-their-childrens-college-education-survey-new/#respond Sun, 19 Sep 2021 15:00:00 +0000 https://fastpaths.com/parent-plus-borrowers-steal-retirement-to-fund-their-childrens-college-education-survey-new/ One in four American parents who have borrowed from the federal government to help pay for a child’s college education do not expect to retire as planned because of debt, according to a poll to be released on Tuesday. And one in five borrowing parents regrets taking the loan, according to the NerdWallet survey. “Parents […]]]>

One in four American parents who have borrowed from the federal government to help pay for a child’s college education do not expect to retire as planned because of debt, according to a poll to be released on Tuesday.

And one in five borrowing parents regrets taking the loan, according to the NerdWallet survey.

“Parents are doing whatever it takes to get their kids to college, including unaffordable debt,” said Anna Helhoski, student loan expert at NerdWallet, a San Francisco-based personal finance website. Of the total of $ 1.6 trillion in student debt, Americans borrowed about $ 103 billion in PLUS loans in the second quarter of 2021. There are 3.6 million Parent Plus borrowers and the average loan is over $ 28,000.

But parents who borrow for children’s college are stealing future retirement dollars to help fund college, NerdWallet warned.

One in three people who have borrowed from the government Parent PLUS loans say they rely on the forgiveness to help pay off much of their debt.

The government recently opted to extend collection actions on overdue loans by four months, until Jan. 31, 2022. But officials say forbearance is unlikely to be offered again.

As for a greater debt amnesty, “relying on forgiveness is a mistake. They hear about it in the headlines. There is hope there, but there is no law now. President Biden has not pledged a broad pardon, ”Helhoski added.

An October 2020 JPMorgan Chase report that analyzed the student loan debt of over 300,000 Chase Bank customers found that “nearly 40% of people involved in student loan repayments are helping someone else to pay off his student loan debt ”.

A 2017 AARP survey of more than 3,000 adults found that a quarter of private student loan co-signers aged 50 and over had to make a loan repayment because the student borrower did not. not done.

While students have borrowed a lot for their education, parents also borrow a lot to help their children, putting two generations in debt.

“Not only is their child getting into debt, they are also getting into debt,” said Anthony “Tony” D’Angelo, executive producer of Collegiate Empowerment, a non-profit educational company.

Due to the rising cost of post-secondary education and the readily available funding for these college degrees, D’Angelo compares college debt to the subprime housing market, which was fueled by easy-to-obtain mortgages and ever-growing real estate. students. prices.

NerdWallet has discovered that student debt affects families at several stages of life: young adults in debt as they try to build their lives; others close to retirement who see their financial life turned upside down; and retired parents and grandparents who have taken out loans to help a loved one complete their education.

Federal Parent PLUS loans may incur higher fees than private student loans, according to PayForEd.com, a Newtown Square, Pa., consulting firm that tracks the student loan industry. Many parents also don’t understand that a PLUS loan is legally their responsibility, not the student’s.

Parent PLUS loans have a standard interest rate for all borrowers established each May, which takes effect on July 1. The federal parent PLUS rate for 2021-2022 is 6.28%. The parent PLUS loan origination fee may also be higher than private loans, at 4.22%, according to PayForEd.com.

Fred Amrein, CEO of PayforEd.com, who developed digital tools to help families manage college costs, said “people over 50 are the fastest growing borrowers.”

Copyright 2021 Tribune Content Agency.


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I bought my first house 2 years ago. Here are 5 things I did well https://fastpaths.com/i-bought-my-first-house-2-years-ago-here-are-5-things-i-did-well/ https://fastpaths.com/i-bought-my-first-house-2-years-ago-here-are-5-things-i-did-well/#respond Sat, 18 Sep 2021 17:00:45 +0000 https://fastpaths.com/i-bought-my-first-house-2-years-ago-here-are-5-things-i-did-well/ Buying a home is an important life changing decision that impacts your finances. My husband and I bought our first home two years ago. It was an important learning experience for both of us, and we made a few mistakes in the process. But along the way, we also made some smart moves. Here are […]]]>

Buying a home is an important life changing decision that impacts your finances. My husband and I bought our first home two years ago. It was an important learning experience for both of us, and we made a few mistakes in the process. But along the way, we also made some smart moves.

Here are five things we did right when buying our first home.

6 simple tips to get a 1.75% mortgage rate

Secure access to The Ascent’s free guide that reveals how to get the lowest mortgage rate on your new home purchase or when refinancing. Rates are still at their lowest for decades, so act today to avoid missing out.

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1. Invested in a home inspection

I was not about to purchase a home based solely on our visit, which only gave a surface level picture of the condition of the property. I knew a home inspection was a must. If we find serious red flags, we may opt out of the deal.

Glad we did a thorough home inspection because we became homeowners with a better idea of ​​what to expect over the next few years. We knew we would likely need to replace the furnace and water heater within the first five years of ownership, and we had already had to replace the heating system. As for long-term repair expenses, our home inspection has let us know that we will eventually need to replace the roof, and we’ve already started a separate savings fund for this big expense.

2. I bought a house within my financial means

We felt our mortgage lender would approve us for a larger loan amount than was comfortable for us. So we set a comfortable limit and stuck to it throughout the home search process. We bought an affordable home so that if one of us suddenly couldn’t work, the other could continue to make the mortgage payments without financial worry.

Now, two years later, I’m still glad we did this. We have more room in our budget to save for future expenses and prioritize other purchases. It feels good to know that we are not stressed by the cost of our mortgage payments or property taxes.

3. Prepared for closing costs

I made sure we received an estimate of our closing costs as early as possible in the loan process. Once our offer was accepted, I wanted to have as much time as possible to prepare the financial side of the closing day. Having an estimate in advance was helpful as it made it easier to make other financial decisions in our day-to-day life.

Also, when the closing day came, we had plenty of money in our bank account to make our down payment and pay all of our closing costs without any additional stress. When making what could be the biggest purchase of your life, it is wise to be well prepared.

4. Pay off most debt before buying a home

During the lending process, your lender will look at your debt-to-income ratio, which measures how much of your income goes to pay off your debts. A lower debt-to-income ratio will increase your chances of getting approved for a mortgage. If you have significant debt, it may be better to pay off your debt before you buy a home.

When we started the home buying process, we didn’t have a lot of debt and made sure we didn’t have any credit card debt. We only used our credit cards for regular, inexpensive monthly purchases and paid them off in full. We had one car loan and two more. But in the end, the minimum payments for these loans were not important. So not only was our debt ratio low enough to get a mortgage, but we felt more comfortable making the financial commitment to buy a home.

5. Credit inquiries avoided during the purchasing process

During the loan process, you are told to avoid opening new lines of credit before the closing day. The reason behind this is that any action that results in a withdrawal of credit or the opening of a new line of credit can impact your credit score. If you open a new credit card or get a new personal loan during the lending process, your credit rating could change, which could affect your chances of getting a home loan at the rate you expect.

We have been careful to avoid credit checks. While it was tempting to open a new rewards credit card to get a great bonus offer, we didn’t want to risk our credit situation changing. As we followed this rule, we were approved for our loan and everything went very well on closing day.

We didn’t do everything right during the home search and purchase process, but we made some wise choices. If you’re thinking about buying your first home, make sure you’re ready for this life-changing decision. Check out our guide to first-time home buyers to learn more about the process.


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5 Ways Having Bad Credit Can Make Your Life Worse https://fastpaths.com/5-ways-having-bad-credit-can-make-your-life-worse/ https://fastpaths.com/5-ways-having-bad-credit-can-make-your-life-worse/#respond Sat, 18 Sep 2021 13:00:25 +0000 https://fastpaths.com/5-ways-having-bad-credit-can-make-your-life-worse/ Like it or not, credit plays an important role in everyday life. Whether you want to be approved for a mortgage, car loan, or credit card, your credit score will play an important role. Those with higher credit are more likely to have better financial options, such as access to low interest loans or reward […]]]>

Like it or not, credit plays an important role in everyday life. Whether you want to be approved for a mortgage, car loan, or credit card, your credit score will play an important role. Those with higher credit are more likely to have better financial options, such as access to low interest loans or reward credit cards with premium benefits. Having a low credit score can be a barrier to these opportunities. Keep reading to find out how a bad credit score can make your life worse.

1. Low credit can limit your rental opportunities

As a tenant, your options may be limited if your credit rating is low. Many landlords and rental companies require potential tenants to submit to a background check. This usually means that they will perform a credit check to see if you have a satisfactory credit history.

Landlords will be less likely to rent to someone who may seem unable to pay their rent quickly, which they assess in part through a credit check. If you have a low score or negative credit scores, you may not be approved.

2. You may have trouble finding a job

Believe it or not, some employers perform background and credit checks during the hiring process. If you have poor credit, this can limit your job prospects. Employers in some industries want to hire employees who they believe are both financially stable and trustworthy with sensitive information. This can mean that they choose to ignore applicants with low credit.

Here are some examples of industries that can perform a credit check on applicants:

  1. Military
  2. Finance
  3. Government
  4. Security
  5. Law enforcement
  6. Temporary jobs
  7. Your credit may affect your ability to get a mortgage

3. Your Credit May Affect Your Ability To Get A Mortgage

If you want to take out a mortgage, you need to be in good financial health. For starters, mortgage lenders want to make sure that you have enough income to pay off your loan. They will also review your credit report and credit score to make sure you’re ready for this life-changing financial decision.

Your credit score and your credit situation will determine if you are approved for a home loan. In addition, it will have an impact on the type of loan and the terms that you can get. If you are thinking about buying a home in the future, now is a good time to start working on improving your credit.

4. Your loans may have higher interest rates

If you can get a car loan or a home loan with poor credit, your loan terms may not be as desirable as you would like. You could be stuck signing a loan with a higher interest rate. This means that you will pay more interest for the life of your loan. Due to the high interest rates on some loans, having bad credit can get very expensive.

5. You may need to delay your life goals

Depending on your credit situation, you may need to delay some of your life goals. If you have a low score, you can also have a lot of debt. If so, it may make more sense to focus on paying off your debt as quickly as possible instead of taking out new loans. It could mean waiting for your other goals, like saving for a car down payment or setting aside extra funds for your future marriage.

Improving your credit is possible

Having low credit is stressful and can negatively impact your life. But you can work on improving it. Make a plan to increase your score and pay off all unpaid debts.

Here are some tools to get started:

  1. Credit Card Interest Calculator: Find out how long it will take you to pay off your credit card debt within a specified time frame, and see how much total interest you’ll pay.
  2. Budget overview: If you need to create a budget but don’t know where to start, this guide can help you get started.
  3. Increase Your Credit Score Guide: Learn how to make changes to improve your credit score and reduce your debt.
  4. Best Debt Repayment Apps: These can help you manage your debt repayment strategy with the convenience of mobile tracking, planning, and reminder tools.

With hard work and a plan, you can improve a low credit score. For more helpful financial advice, check out these personal finance resources.


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Mortgage foreclosures rise as moratorium ends: options for homeowners who may be at risk https://fastpaths.com/mortgage-foreclosures-rise-as-moratorium-ends-options-for-homeowners-who-may-be-at-risk/ https://fastpaths.com/mortgage-foreclosures-rise-as-moratorium-ends-options-for-homeowners-who-may-be-at-risk/#respond Fri, 17 Sep 2021 19:07:33 +0000 https://fastpaths.com/mortgage-foreclosures-rise-as-moratorium-ends-options-for-homeowners-who-may-be-at-risk/ With the end of the moratoriums on foreclosures, foreclosures are on the rise, a trend that is expected to continue over the next few years. (iStock) Foreclosure activity is expected to remain slightly elevated over the next three months after rising in August, according to a new report from ATTOM, a mortgage data company and […]]]>

With the end of the moratoriums on foreclosures, foreclosures are on the rise, a trend that is expected to continue over the next few years. (iStock)

Foreclosure activity is expected to remain slightly elevated over the next three months after rising in August, according to a new report from ATTOM, a mortgage data company and parent company of the RealtyTrac foreclosure market.

Foreclosure deposits – including notices of default, scheduled auctions and bank foreclosures – rose 27% from July to 15,838 deposits in August, according to the August 2021 U.S. Lockdown Market Report. This is 60% more than last year.

“As expected, foreclosure activity has increased as the government’s foreclosure moratorium has expired, but that doesn’t mean we should expect to see a flood of troubled properties hit the market,” said the Executive Vice President of RealtyTrac, Rick Sharga. “We will continue to see foreclosure activity increase over the next three months as loans past due before the moratorium re-enter the foreclosure pipeline, and states begin to make up for months of foreclosure requests that simply don’t. not been processed. during the pandemic. “

If you’re at risk of finding yourself in foreclosure or struggling to make your mortgage payments, consider taking out mortgage refinancing to help lower your monthly payments while interest rates remain at record highs. Visit Credible to see your personalized rate and compare how much you could save.

CONSUMER OPTIMISM ON HOME PURCHASE TERMS INCREASES FOR THE FIRST TIME SINCE MARCH: REPORT

CFPB rule still suspends seizures

Despite the slight increase at the end of the moratoriums on foreclosures and evictions, residential foreclosures remain suppressed for the rest of the year, Sharga said.

“It is likely that foreclosures will stay below normal levels at least until the end of the year,” he said.

Indeed, the Biden administration implemented a new service rule through the Consumer Financial Protection Bureau (CFPB) that would delay most foreclosures until 2022. The rule, which came into effect at the end of August, prevented mortgage agents to offer a loan. modification plan to increase the monthly payment of a homeowner exiting their forbearance program. It also prevents them from extending the loan term beyond 480 months and allows them to add missed payments to prevent homeowners from falling into delinquency.

The CFPB will continue to add additional restrictions on foreclosures until the end of 2022 to protect homeowners. If you are interested in mortgage refinancing, visit Credible to compare several mortgage lenders and choose the best rate for you.

HERE’S WHAT THE BIDEN ADMINISTRATION’S NEW MORTGAGE SERVICE RULES MEAN TO YOU

Options for homeowners to avoid foreclosure

Currently, the new CFPB service rule creates more options for homeowners to avoid foreclosure. If you’re looking for ways to avoid foreclosure and are also catching up on your monthly mortgage payments, here are a few places to start:

Loan modification

Under the new service rule, mortgage agents must work with homeowners to get them back on track with their monthly payments. With a loan modification, borrowers can reduce their costs by reducing their interest rates or changing loan terms. Homeowners can contact their loan officer to discuss their options.

Mortgage refinancing

Refinancing options could also help lower monthly payments with current interest rates below 3%. There are even new options made available by the Federal Housing Finance Agency (FHFA) through Fannie Mae and Freddie Mac for low-income borrowers or homeowners who have missed their payments due to a COVID-related difficulty. -19. Visit Credible to be prequalified in minutes without affecting your credit score.

FREDDIE MAC: ECONOMIC GROWTH LOSES MOMENTUM, NOW INTEREST RATES LOW

Sell ​​your house

While this isn’t an ideal option, homeowners who can’t use other methods to start paying their mortgage payments may want to consider selling their home rather than foreclosure. Home prices are rising at an all time high and could leave homeowners with multiple levels of profit if they choose to sell their home.

If you would like to explore your mortgage refinancing options, contact Credible to speak to a mortgage expert and get all of your questions answered.

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


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Mortgage rates stabilize at the end of the week: how long can the lows last? | September 17, 2021 https://fastpaths.com/mortgage-rates-stabilize-at-the-end-of-the-week-how-long-can-the-lows-last-september-17-2021/ https://fastpaths.com/mortgage-rates-stabilize-at-the-end-of-the-week-how-long-can-the-lows-last-september-17-2021/#respond Fri, 17 Sep 2021 13:13:09 +0000 https://fastpaths.com/mortgage-rates-stabilize-at-the-end-of-the-week-how-long-can-the-lows-last-september-17-2021/ Our goal here at Credible Operations, Inc., NMLS number 1681276, referred to as “Credible” below, is to give you the tools and confidence you need to improve your finances. Although we promote the products of our partner lenders who pay us for our services, all opinions are ours. View mortgage rates for September 17, 2021, […]]]>

Our goal here at Credible Operations, Inc., NMLS number 1681276, referred to as “Credible” below, is to give you the tools and confidence you need to improve your finances. Although we promote the products of our partner lenders who pay us for our services, all opinions are ours.

View mortgage rates for September 17, 2021, which are largely unchanged from yesterday. (iStock)

Based on data compiled by Credible, mortgage rates have remained unchanged since yesterday, with the exception of 20-year rates, which edged up.

  • Fixed mortgage rates over 30 years: 2.750%, unchanged
  • 20-year fixed mortgage rates: 2.500%, vs. 2.375%, + 0.125
  • Fixed mortgage rates over 15 years: 2,000%, unchanged
  • 10-year fixed mortgage rates: 2,000%, unchanged

Rates last updated on September 17, 2021. These rates are based on the assumptions presented here. Actual rates may vary.

What does that mean: Mortgage interest rates have remained at historic lows throughout 2021. But Fannie Mae and Freddie Mac expect rates to rise in the last quarter of 2021. While those increases are likely to be relatively modest, keep in mind that even a 0.1% difference in a mortgage rate could run into the thousands of dollars over the life of a loan. Homebuyers who take action in September to secure a near-record interest rate can save a lot of money.

To find the best mortgage rate, start by using Credible, which can show you current mortgage and refinance rates:

Browse the rates of several lenders to make an informed decision about your home loan.

Credible, a personal finance marketplace, has 4,500 Trustpilot reviews with an average rating of 4.7 stars (out of a possible 5.0).

Looking at Mortgage Refinance Rates Today

Today’s mortgage refinance rates are largely unchanged from yesterday, with the exception of 20-year rates, which edged up. The average mortgage refinancing rate is only 2.313%, only 0.063% above the record low of the year. If you are considering refinancing an existing home, find out what refinancing rates look like:

  • Fixed refinancing rates over 30 years: 2.750%, unchanged
  • Fixed refinancing rates over 20 years: 2.500%, vs. 2.375%, + 0.125
  • Fixed refinancing rates over 15 years: 2,000%, unchanged
  • Fixed refinancing rates over 10 years: 2,000%, unchanged

Rates last updated on September 17, 2021. These rates are based on the assumptions presented here. Actual rates may vary.

A site like Credible can be of great help when you are ready to compare mortgage refinancing loans. Credible allows you to view prequalified rates for conventional mortgages from multiple lenders within minutes. Visit Credible today to start.

Credible has earned a 4.7-star rating (out of a possible 5.0) on Trustpilot and over 4,500 customer reviews who have safely compared prequalified rates.

How Does the Federal Reserve Affect Mortgage Rates?

The Federal Reserve System – or “The Fed,” as it is commonly known – is the central bank of the United States. It is responsible for taking action to keep the economy secure, stable and flexible. As a result, the Fed controls the U.S. money supply and short-term interest rates, and sets the Fed Funds Rate, which is the rate banks charge when they borrow from each other on a day-to-day basis.

But the Fed doesn’t actually set mortgage rates. On the contrary, several things the Fed influences mortgage rates. For example, although mortgage rates do not reflect the federal funds rate, they tend to follow it. If this rate increases, mortgage rates generally rise in tandem.

The Fed also buys and sells mortgage-backed securities, or MBS – a set of similar loans that a large mortgage investor buys and then resells to investors in the bond market. When the Fed buys a lot of mortgage-backed securities, it creates demand in the market and lenders can make money even if they offer lower mortgage rates. So rates tend to fall when the Fed buys a lot. When the Fed buys less MBS, demand drops and rates are likely to rise.

Current mortgage rates

Average mortgage rates fell for all terms this week, with the week’s average for 30-year mortgages standing at 2.750% and 1.975% for 10-year mortgages.

Current 30-year mortgage rates

The current interest rate for a 30 year fixed rate mortgage is 2.750%. It’s the same as yesterday. Thirty years is the most common mortgage repayment term because 30-year mortgages typically give you a lower monthly payment. But they also usually come with higher interest rates, which means you’ll ultimately pay more interest over the life of the loan.

Current 20-year mortgage rates

The current interest rate for a 20 year fixed rate mortgage is 2,500%. It’s since yesterday. Shortening your repayment term by just 10 years can mean you’ll get a lower interest rate and pay less total interest over the life of the loan.

Current 15-year mortgage rates

The current interest rate for a 15 year fixed rate mortgage is 2,000%. It’s the same as yesterday. Fifteen-year mortgages are the second most common mortgage term. A 15-year mortgage can help you earn a lower rate than a 30-year term and pay less interest over the life of the loan, while still keeping monthly payments manageable.

Current 10-year mortgage rates

The current interest rate for a 10 year fixed rate mortgage is 2,000%. It’s the same as yesterday. While less common than 30- and 15-year mortgages, a 10-year fixed-rate mortgage typically gives you lower interest rates and lifetime interest charges, but a higher monthly mortgage payment.

You can explore your mortgage options in minutes by visiting Credible to compare the current rates of various lenders who offer mortgage refinances as well as home loans. Discover Credible and get prequalified today, and take a look at today’s refinance rates via the link below.

Thousands of Trustpilot reviewers rate Credible “excellent”.

Rates last updated on September 17, 2021. These rates are based on the assumptions presented here. Actual rates may vary.

How credible mortgage rates are calculated

Changing economic conditions, central bank policy decisions, investor sentiment and other factors influence the development of mortgage rates. Credible’s average mortgage rates and mortgage refinance rates are calculated based on information provided by partner lenders who compensate Credible.

The rates assume that a borrower has a credit score of 740 and borrows a conventional loan for a single family home that will be their primary residence. Rates also assume zero (or very low) discount points and a 20% deposit.

Credible mortgage rates will only give you an idea of ​​current average rates. The rate you receive may vary depending on a number of factors.

How mortgage rates have changed

Today, mortgage rates are mostly the same as they were around the same time last week.

  • Fixed mortgage rates over 30 years: 2.750%, the same as last week
  • 20-year fixed mortgage rates: 2.500%, compared to 2.375% last week, +0.125
  • Fixed mortgage rates over 15 years: 2,000%, same as last week
  • 10-year fixed mortgage rates: 2,000%, same as last week

Rates last updated on September 17, 2021. These rates are based on the assumptions presented here. Actual rates may vary.

These rates are based on the assumptions presented here. Actual rates may vary.

If you are trying to find the right rate for your mortgage or are looking to refinance an existing home, consider using Credible. You can use Credible’s free online tool to easily compare multiple lenders and see prequalified rates in minutes.

With over 4,500 reviews, Credible maintains an “excellent” Trustpilot score.

Fixed Rate vs. Variable Rate Mortgages: How They Affect Interest Charges

Mortgage interest rates can be fixed (meaning they stay the same for the life of your loan) or variable (the rate may change after an initial period). The type of mortgage you choose will affect your interest rate.

The interest rates for fixed rate mortgages tend to be higher than the initial interest rate for variable rate mortgages, or ARMs. But they don’t change, so you’ll know when you start your loan exactly how much interest you’ll pay over the life of your mortgage.

The initial interest rates for ARMs are generally lower than those for fixed rate mortgages. But after an introductory period ends, your interest rate will change – and it could go up dramatically. The introductory periods can vary from several months to a year or a few years. After the introductory period, your interest rate will be based on an index specified by your lender. ARMs may or may not cap your interest rate increase.

It is common for homeowners with adjustable rate mortgages to refinance into fixed rate loans when their introductory period is about to end.

Looking to lower your home insurance rate?

A home insurance policy can help you cover unforeseen costs you might incur during homeownership, such as structural damage and destruction or theft of personal property. Coverage can vary widely from insurer to insurer, so it’s wise to shop around and compare policy quotes.

Credible has a partnership with a home insurance broker. You can compare for free home insurance quote via Credible’s partner here. It’s quick, easy and the whole process can be done entirely online.

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

As a credible authority on mortgages and personal finance, Chris Jennings has covered topics such as mortgages, mortgage refinancing, and more. He was an editor and editorial assistant in the online personal finance field for four years. His work has been featured by MSN, AOL, Yahoo Finance, and more.


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