Loan Insurance – 4 Walls And A View http://4wallsandaview.com/ Sun, 10 Oct 2021 11:13:34 +0000 en-US hourly 1 https://wordpress.org/?v=5.8 https://4wallsandaview.com/wp-content/uploads/2021/06/icon-5.png Loan Insurance – 4 Walls And A View http://4wallsandaview.com/ 32 32 Maharashtra Dy CM Ajit Pawar https://4wallsandaview.com/maharashtra-dy-cm-ajit-pawar/ https://4wallsandaview.com/maharashtra-dy-cm-ajit-pawar/#respond Sun, 10 Oct 2021 02:10:49 +0000 https://4wallsandaview.com/maharashtra-dy-cm-ajit-pawar/ Observing that farmers in Maharashtra’s Marathwada region suffered heavy losses due to excessive rains, Deputy Chief Minister Ajit Pawar said on Saturday that the state government would receive a loan to help farmers in affected areas of the state if necessary. Speaking to reporters, Pawar said the harvest and other losses could reach Rs 4,000 […]]]>

Observing that farmers in Maharashtra’s Marathwada region suffered heavy losses due to excessive rains, Deputy Chief Minister Ajit Pawar said on Saturday that the state government would receive a loan to help farmers in affected areas of the state if necessary.

Speaking to reporters, Pawar said the harvest and other losses could reach Rs 4,000 crore in the Marathwada region alone.

The Maharashtra government last week paid the tranche of Rs 974 crore as part of its contribution to crop insurance and the center must now pay its share, he said.

Pawar chaired a meeting to review losses in the Marathwada region due to excessive rainfall last month.

He said the state is paying its share of crop insurance except in some areas because insurance companies have not helped farmers in those areas.

“It is still raining in some blocks of the Marathwada region. Once we have the loss figure, we will not wait for help from the central government and help the farmers. We will do it even if we have to opt for loans for farmers in Marathwada and other parts of Maharashtra, ”he said.

The state government has ordered insurance companies to immediately pay for losses suffered by farmers, he said.

“The state has given 550 crore rupees for non-agricultural losses. This fund will be given for damage to houses, loss of livestock and loss of life,” he said, adding that waterlogging is a problem. major obstacle for teams. trying to repair the electrical infrastructure in rural areas.

“The government of Maharashtra has decided to distribute aid in accordance with NDRF standards. Chief Minister Uddhav Thackeray will be briefed on today’s review meeting. A demand is being raised for more funds to be provided to the committees. district planning. A decision will be made, “said the deputy CM.

Pawar said a meeting will be held between Maharashtra’s irrigation minister and his counterpart from Telangana to discuss the issue of Nanded waterlogging due to the backwater at the Pochampad dam in the southern state.

“The government of Maharashtra has decided to give interest-free loans to farmers who will repay them on time this time. This timely repayment is not possible now because the farmers have lost their crops. The government is planning to restructure the debt. farmers and make them eligible for the new loan. A decision on declaring wet drought in Marathwada will be taken after discussions, “Pawar added.

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Posted on: Sunday October 10, 2021, 7:40 a.m. IST


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9th Cir. Axes fraud and conspiracy charges against former bank executives https://4wallsandaview.com/9th-cir-axes-fraud-and-conspiracy-charges-against-former-bank-executives/ https://4wallsandaview.com/9th-cir-axes-fraud-and-conspiracy-charges-against-former-bank-executives/#respond Sat, 09 Oct 2021 01:32:00 +0000 https://4wallsandaview.com/9th-cir-axes-fraud-and-conspiracy-charges-against-former-bank-executives/ By Lauren Berg (Oct 8, 2021, 9:32 p.m. EDT) – A Ninth Circuit Divided Friday quashed conspiracy and fraud charges against two former Oregon bank executives accused of defrauding the financial institution, dismissing two of the government’s three theories of what property interests the bank has lost. In a 33-page opinion, the majority of the […]]]>
By Lauren Berg (Oct 8, 2021, 9:32 p.m. EDT) – A Ninth Circuit Divided Friday quashed conspiracy and fraud charges against two former Oregon bank executives accused of defrauding the financial institution, dismissing two of the government’s three theories of what property interests the bank has lost.

In a 33-page opinion, the majority of the two judges overturned the convictions of Dan Heine and Diana Yates for conspiring to commit bank fraud and false bank entries at the Bank of Oswego, claiming that the theories of federal prosecutors that the couple had deprived the database of accurate information in their records and their salaries and bonuses did not hold.

“There is no recognizable property interest in ‘the …

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Current mortgage rates drop below 3% | Smart change: personal finance https://4wallsandaview.com/current-mortgage-rates-drop-below-3-smart-change-personal-finance/ https://4wallsandaview.com/current-mortgage-rates-drop-below-3-smart-change-personal-finance/#respond Thu, 07 Oct 2021 14:07:36 +0000 https://4wallsandaview.com/current-mortgage-rates-drop-below-3-smart-change-personal-finance/ What is the impact of mortgage rates on home sales? The total number of mortgage applications fell 6.9% for the week ending Oct. 1, according to the Mortgage Bankers Association. The largest decline occurred in the refinancing loan category, which declined to double digits week over week. Purchase requests are down 2% from the previous […]]]>

What is the impact of mortgage rates on home sales?

The total number of mortgage applications fell 6.9% for the week ending Oct. 1, according to the Mortgage Bankers Association. The largest decline occurred in the refinancing loan category, which declined to double digits week over week.

  • Purchase requests are down 2% from the previous week and 13% from the same week last year.
  • The number of loan refinancing requests decreased 10% from the previous week and 16% year-on-year. Despite the decline, refinancing still constitutes the bulk of mortgage lending activity, representing nearly 65% ​​of all lending activity.

“The higher rates reduce the incentive for borrowers to refinance, as declines have been observed for all types of loans,” said Joel Kan, associate vice president of economic and industrial forecasting at MBA. “Purchasing activity also declined, driven by a drop in requests for conventional loans.”

Guide to current mortgage rates

What is a good interest rate on a home loan?

Mortgage rates today are near their historic lows. Freddie Mac’s Average Rates show what a borrower with a 20% down payment and a good credit score could get if they spoke to a lender this week. If you make a smaller down payment, have a lower credit score, or take out a non-compliant (or jumbo) mortgage, you may see a higher rate. A good mortgage rate is one where you can comfortably pay the monthly payments and where other loan details (such as the loan term, whether the rate is fixed or adjustable, and other fees) match your needs.


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Here’s why black leaders say debt cancellation is a civil rights issue https://4wallsandaview.com/heres-why-black-leaders-say-debt-cancellation-is-a-civil-rights-issue/ https://4wallsandaview.com/heres-why-black-leaders-say-debt-cancellation-is-a-civil-rights-issue/#respond Wed, 06 Oct 2021 22:50:00 +0000 https://4wallsandaview.com/heres-why-black-leaders-say-debt-cancellation-is-a-civil-rights-issue/ Montgomery, a home teacher and tutor from Mansfield, Texas, said he had to work night shifts at a local grocery store to pay his student loan bills. He currently lives with his mother and helps him financially. The federal government’s hiatus on student loan payments and accrued interest during the Covid-19 pandemic has given Montgomery […]]]>

Montgomery, a home teacher and tutor from Mansfield, Texas, said he had to work night shifts at a local grocery store to pay his student loan bills. He currently lives with his mother and helps him financially.

The federal government’s hiatus on student loan payments and accrued interest during the Covid-19 pandemic has given Montgomery a chance to build a rainy day fund, but he expects this to decline quickly when payments will resume in February. The U.S. Department of Education on Wednesday announced major changes to a federal student loan cancellation program that the agency said could bring relief to more than 550,000 borrowers working in the public and non-profit sectors. lucrative, but that still might not help graduates like Montgomery.

Montgomery, 30, is one of millions of black college graduates who face significant student debt that has kept them from achieving the same financial freedom as many of their white counterparts.

Some graduates, like Montgomery, say they are unable to continue their education after earning a bachelor’s degree, buying a house, opening a business, raising a family, or traveling because monthly student loan payments leave them strapped for cash. . It’s a problem that experts say has worsened the racial wealth gap in the country where the median net worth of a white family is $ 188,200, compared to $ 24,100 for a black family.

“This not only represents a lost economic opportunity for us, but also for our children and our communities,” said Montgomery. “It’s a lot harder to keep up with the rising cost of living, rising rents and it really feels like the American dream of homeownership will just never be achievable. disappointing because there are things that can be done about it. ”

The Brookings Institution estimates that, on average, black college graduates owe $ 52,726 in student debt compared to white college graduates who owe $ 28,006. The average Asian borrower owes around $ 25,000 while Hispanic borrowers owe around $ 30,000.

The disparity has led many black executives and borrowers to pressure President Joe Biden’s administration to consider the plight of black Americans when deciding who to write off their student loan debt.

Biden has so far written off $ 9.5 billion in student loan debt for about 563,000 borrowers, the US Department of Education said in August. These borrowers included victims of collegiate for-profit fraud and people with permanent disabilities. In August, the Biden administration announced it was extending the freeze on federal student loan payments until January 2022 under pressure from lawmakers and advocates.

William Spriggs, professor of economics at Howard University, said the nation’s legacy of discrimination and racism has left many black families unable to afford the cost of education – especially those who choose to attend flagship, predominantly white universities that charge more tuition than those at HBCU. and small colleges.

Blacks who cannot afford college are more likely to apply for student loans because they believe education is the key to overcoming prejudice in the job market, Spriggs said.

White families, however, benefited from the privileges and generational wealth accumulated by their ancestors who had better access to college, well-paying jobs and property, he said. For example, in the 1940s the GI Bill was passed, providing low-interest mortgages and allowances to cover college or business school tuition fees for millions of returning veterans. of World War II. Black veterans have struggled to get the benefits of the bill due to racist institutions and racist lawmakers creating roadblocks for them.

“The racial wealth gap is the accumulation of advantages,” Spriggs said. “Wealth is saving in many forms. It can be assets like houses, stocks, land and a lot of those things don’t go away. When someone accumulates that, that. continues to be passed on and the children stand on someone’s financial shoulders. “

A “dressing” solution

NAACP urges the Biden administration to write off a minimum of $ 50,000 in student debt for all borrowers through its $ 50,000 and beyond campaign. Canceling student debt would provide black borrowers with the opportunity to own property, grow the economy, boost discretionary income and fuel upward mobility in black communities, said Wisdom Cole, National Director Acting of the Youth Colleges Division of the NAACP.

Cole said lawmakers need to provide more permanent relief to distressed borrowers.

“We are happy that there has been an extension of the (payment) break but we are not done fighting yet,” said Cole. “The break is a band-aid. It’s a temporary fix. We need to see wider spread cancellations.”

Cole said that historically, black colleges and universities have served as a model for providing financial assistance to black families who have been disproportionately affected by the economic and health crisis caused by the Covid-19 pandemic.

More than 20 HBCUs have made headlines this year for clearing student account balances with CARES (Coronavirus Aid, Relief and Economic Security) funds. Schools included Florida Agricultural and Mechanical University (FAMU), Clark Atlanta University, Howard University, and Morehouse College.

Larry Robinson, president of FAMU, said he recognizes that many black students and graduates are struggling with debt because they do not come from families who can afford their education. The average FAMU student comes from a household with an annual income of less than $ 50,000, Robinson said.

HBCU Write Off Student

He said the university is working to help students avoid taking out student loans whenever possible, as this often leads to “dire consequences” after graduation.

“It affects their next steps, their way of life, where they live, their ability to support their families,” Robinson said.

Robinson said with so many student families suffering job losses due to the pandemic, the Biden administration should consider writing off all their debts.

“The economic results will be even longer for our students and their families,” said Robinson. “There wouldn’t be a better time in my opinion for them to start with a clean slate.”

The struggle for financial freedom

Some black leaders say colleges and lawmakers need to come up with longer-term solutions to the student debt crisis.

Harry L. Williams, president and CEO of the Thurgood Marshall College Fund, said he wanted to see the federal Pell grant – which is awarded to undergraduates with exceptional financial need – doubled. He also wants more colleges and businesses to create programs and scholarships that help students avoid taking out loans.

Too many black graduates, Williams said, enter the workforce with significant debt and bad credit scores, making it difficult for them to buy a home or earn low interest rates. Some also struggle to secure the funds to start businesses, he said.

“This is something that we have to continue to address,” said Williams. “The downside for our students is that when they graduate they have so much debt that they’ve already racked up that it puts them back in the hole.”

Nicole Hale, a 34-year-old data analyst, said her student loan debt balance was so “astronomical” that she had to suspend her doctoral program at Walden University a few years ago because she had no more money. Hale also had to postpone her dream of starting an online business for female musicians.

The student loan payment hiatus, however, allowed Hale to pay off his car and eliminate some credit card debt. She also moved with her parents to Philadelphia last year to help them financially. With federal student loan payments resuming in February, Hall said she feared the Biden administration had no plans to help black graduates get into debt.
“I think a lot of us (millennials) were relying on this administration to take office and do something immediately,” Hale said. “I really think we had high hopes. And to see that nothing is done, but yet we see money being invested in other places… I really want to know if the Biden administration understands how much this is. is serious.”


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NY Life now offers disability insurance https://4wallsandaview.com/ny-life-now-offers-disability-insurance/ https://4wallsandaview.com/ny-life-now-offers-disability-insurance/#respond Wed, 06 Oct 2021 15:01:43 +0000 https://4wallsandaview.com/ny-life-now-offers-disability-insurance/ New York Life has expanded its services to provide disability insurance, the company said on Tuesday. MyIncome Protector is the first in a suite of solutions designed to replace part of the income in the event of an insured’s disability. The new product will replace between 50% and 70% of a covered person’s income. It […]]]>

New York Life has expanded its services to provide disability insurance, the company said on Tuesday.

MyIncome Protector is the first in a suite of solutions designed to replace part of the income in the event of an insured’s disability. The new product will replace between 50% and 70% of a covered person’s income. It can be used to supplement the benefits that can be received under employer benefit programs, and it provides a permanent, transferable benefit to consumers, with guaranteed premiums up to age 67, a declared New York Life.

MyIncome Protector offers two riders to business owners: the Business Support Rider, which provides an additional lump sum spread over four payments to business owners who become totally disabled, and the Business Loan Rider, which reimburses the business owners share of any loan payment made on a business loan when the owner is disabled.

The new program also offers an automatic benefit increase and optional benefit increase, which allows the insured person to increase their monthly disability benefits by up to 10% per year for the first five years without medical proof of insurability.

“An important part of a strong financial plan, disability insurance is a valuable and portable financial protection tool,” said Paul Fromm, vice president and head of disability income solutions at New York Life, in a statement. . “My Protective Income [includes] three definitions of total disability to choose from and a range of benefits, including 11 rider options and the ability to create a personalized policy.

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USDA vs FHA Loans: What’s the Difference? https://4wallsandaview.com/usda-vs-fha-loans-whats-the-difference/ https://4wallsandaview.com/usda-vs-fha-loans-whats-the-difference/#respond Tue, 05 Oct 2021 22:33:57 +0000 https://4wallsandaview.com/usda-vs-fha-loans-whats-the-difference/ Our goal is to give you the tools and the confidence you need to improve your finances. While we do receive compensation from our partner lenders, whom we will always identify, all opinions are ours. Credible Operations, Inc. NMLS # 1681276, is referred to herein as “Credible”. Mortgages from the United States Department of Agriculture […]]]>

Our goal is to give you the tools and the confidence you need to improve your finances. While we do receive compensation from our partner lenders, whom we will always identify, all opinions are ours. Credible Operations, Inc. NMLS # 1681276, is referred to herein as “Credible”.

Mortgages from the United States Department of Agriculture (USDA) and the Federal Housing Administration (FHA) are generally easier to obtain than a conventional mortgage. This makes them good options for first-time home buyers and low to moderate income borrowers.

Although both of these loans are guaranteed by government agencies, there are several key differences between the two that you will need to consider before applying for one. For example, USDA loans require you to live in a rural setting and meet the income limit for your area.

Here’s a closer look at each loan program so you can decide which one is best for your needs:

USDA eligibility against FHA

Both the USDA and the FHA offer home loans for single family residences.

For an FHA loan, you will apply for a 203 (b) base mortgage to purchase your primary residence.

However, there are two USDA home loan programs to choose from and the eligibility standards are slightly different:

  • USDA Guaranteed Loan: For low to moderate income households that a private lender issues but USDA supports. You will not have any borrowing limit or ownership restrictions for this loan.
  • USDA Direct Loan: For low and very low income borrowers who need additional underwriting. The USDA funds the loan and it has more stringent income and ownership criteria. Also, the borrowing limit is $ 285,000 in most counties.

Here are the basic requirements that you will need to meet for each loan:

USDA loans FHA loans
Min. advance payment 0%
  • 3.5% (with a credit score of 580 or higher)
  • ten% (with a credit score between 500 and 579)
Min. credit rating 640 500
Income Limits Up to 115% of median household income Nothing
Debt-to-income ratio (DTI)
  • Up to 29% of monthly housing costs
  • Up to 41% of monthly debt payments
  • Up to 31% of monthly housing costs
  • Up to 43% of monthly debt payments
Loan limits
  • None for secured loans
  • Up to $ 285,000 for most direct loans
$ 356,362 for single-family homes in most areas
Location requirements USDA eligible rural areas only Nothing
Types of eligible properties Single-family main residences only Main residences between 1 and 4 apartments
Mortgage repayment terms 30 years fixed 30-year fixed rate, 15-year fixed rate and adjustable rate
Upfront costs 1% guarantee fee Initial mortgage insurance premium of 1.75%
Annual subscription 0.35% annual fee Up to 0.85% annual mortgage loan insurance premium

See also: Conventional loan conditions

USDA home loans have stricter income limits than FHA loans and also require you to live in an eligible rural area. Your home address and your annual household income determine your borrower’s eligibility for USDA loans.

The requirements of FHA borrowers, on the other hand, are more lenient because you may have a lower credit score. Multi-unit buildings are also eligible. However, you will need to make a down payment with an FHA loan.

USDA vs FHA vs conventional

Many home buyers will use a USDA, FHA, or conventional mortgage to purchase their home. Here is how these three types of loans differ.

USDA loans

These loans are only available to low to moderate income rural home buyers. Income limits vary by region but are relatively strict. USDA loans do not require a down payment, but you will need a minimum credit score of 640 and will be required to pay an upfront guarantee fee of 1% plus an annual fee equal to 0.35% of the amount. your loan.

FHA loans

Among government mortgage programs, you may have the easiest time qualifying for an FHA loan. You will only need a 3.5% down payment when your credit score is at least 580.

That said, you will likely be paying mortgage insurance for the life of the loan, unless you can deposit at least 10%. This allows you to forfeit your remaining payments after 11 years.

Conventional loans

Conventional mortgages have the strictest credit requirements, but they also offer competitive rates and can end up being cheaper in the long run. For example, you can avoid private mortgage insurance with a minimum down payment of 20%.

Credible does not offer FHA or USDA loans, but we can help you find a great rate on a conventional loan. Just enter some basic financial information and you’ll see multiple prequalified rates within minutes. After that, you can explore your loan options and find the one that best fits your budget.

Credible makes getting a mortgage easier

  • Instant simplified pre-approval: It only takes 3 minutes to see if you qualify for an instant streamlined pre-approval letter, without affecting your credit.
  • We keep your data private: Compare rates from multiple lenders without your data being sold or spammed.
  • A modern approach to mortgage loans: Top up your mortgage online with banking integrations and automatic updates. Only speak to a loan officer if you want to.

Find rates now

Pros and Cons of USDA

USDA loans offer several advantages to borrowers, but there are some disadvantages that you should also consider.

Benefits of USDA

Here are some of the best reasons to consider a USDA loan:

  • No minimum deposit: Conventional loans and FHA loans both require some form of down payment, but USDA loans do not have such a requirement.
  • May not need cash reserves: Lenders may not require cash reserves to secure funding. However, including your qualifying balances may facilitate eligibility.
  • No maximum purchase price defined: USDA loans have no borrowing limit. Instead, the maximum amount of your loan depends on your repayment capacity.
  • Lower mortgage insurance costs: Your initial USDA guarantee fee is 1% of the loan amount and the annual fee is 0.35%. Both rates are lower than the FHA mortgage insurance premiums.
  • The seller can pay the closing costs: The seller can contribute up to 6% of the sale price. You can also receive unlimited gift funds to reduce your loan amount.

Disadvantages of USDA

Here are the main disadvantages of this loan program:

  • Good credit required: You will need a minimum credit score of 640 to be eligible for this loan, similar to conventional lenders. FHA lenders may only require a score of 580 or less.
  • Geographical restrictions: You must live in a rural area to be eligible for USDA funding. Fortunately, the definition is flexible, and many suburban and dormitory communities may be eligible if the population is below a certain amount.
  • Maximum income limits: For a USDA guaranteed loan, your household income cannot exceed 115% of your county’s Median Household Income (MHI). Households with incomes 80% below the MHI will need to apply for a USDA direct loan. Direct loans may have more stringent ownership and application requirements, but like secured loans, they do not require a down payment.
  • Lifetime Warranty Fee: All USDA loans require an upfront and annual guarantee fee for the life of the loan. Unlike FHA and conventional loans, making a qualifying down payment will not affect whether or not you pay for mortgage insurance.
  • Single-family homes only: Single-family homes are the only type of qualifying property. This includes townhouses and condos, as long as you use the unit for your primary residence. Investment properties are not eligible.

Pros and Cons of FHA

FHA loans are a good option, especially if you have poor credit or a lot of debt. But they also come with their own set of drawbacks.

The FHA pros

Here are some of the best reasons to apply for an FHA home loan:

  • Favorable credit conditions: You can usually qualify for maximum FHA financing with a credit score of 580 versus a score of 640 for a USDA loan. You might also qualify with a credit score between 500 and 579 if you can make a 10% down payment.
  • Higher debt-to-income ratios: Your back-end DTI, that is, your total monthly debt, can reach 45% for FHA loans, but only 41% for USDA loans.
  • Potentially lower interest rate: FHA interest rates may be lower than USDA loan rates because you have the option of choosing shorter repayment terms, including a 15-year fixed interest rate. The USDA only offers fixed 30-year loans, which naturally have higher rates.
  • Multi-family units may be eligible: Properties with up to four units may qualify for financing with an FHA loan when one unit is your primary residence. For example, buying a duplex with an FHA loan is ok as long as you live in half the property. Like USDA loans, however, second homes and investment properties are not eligible.

Disadvantages of FHA

  • Higher down payment terms: Depending on your credit score, you will need to make a down payment of 3.5% or 10%. USDA loans do not require a down payment.
  • Higher mortgage insurance premiums: Your initial and annual mortgage insurance premiums are higher than the USDA warranty fee and annual fee.
  • Difficult to cancel mortgage insurance: You will pay an annual mortgage loan insurance premium over the life of the loan, unless your down payment is 10% or more, in which case you will only pay mortgage default insurance for the first 11 years.
  • Mortgage limits: The maximum loan amount in 2021 is $ 356,362 for most counties. You may qualify for a higher limit if you live in a high cost area.

Keep reading: FHA vs. Conventional loans: which one is right for you?

About the Author

Josh Patoka

Josh Patoka is an authority on personal finance and a contributor to Credible. His work has been published on Fox Business and several award-winning personal finance blogs, including Well Kept Wallet, Wallet Hacks, and Frugal Rules.

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Mortgage rates hit 3.17% last week – the biggest weekly increase since February https://4wallsandaview.com/mortgage-rates-hit-3-17-last-week-the-biggest-weekly-increase-since-february/ https://4wallsandaview.com/mortgage-rates-hit-3-17-last-week-the-biggest-weekly-increase-since-february/#respond Mon, 04 Oct 2021 16:41:58 +0000 https://4wallsandaview.com/mortgage-rates-hit-3-17-last-week-the-biggest-weekly-increase-since-february/ Editorial independence We want to help you make better informed decisions. Certain links on this page – clearly marked – may direct you to a partner website and earn us a referral commission. For more information, see How we make money. We have seen mortgage rates linger near 3% in recent weeks. But last week, […]]]>

We want to help you make better informed decisions. Certain links on this page – clearly marked – may direct you to a partner website and earn us a referral commission. For more information, see How we make money.

We have seen mortgage rates linger near 3% in recent weeks. But last week, the 30-year average fixed mortgage rate jumped to 3.17%. While many experts expect mortgage rates to rise towards the end of 2021, a weekly hike of 0.12% could worry potential borrowers. But rates are still considered low by historical standards and 1% lower than pre-pandemic levels.

There is no denying that interest rates have a direct impact on how much home buyers can afford. With a lower rate, payments are lower, allowing buyers to qualify for larger loans. But the rates are only part of the story. With the rise in home prices nationwide, buyers need a larger down payment to help offset monthly costs.

Existing homeowners are in a better position to take advantage of these low rates by refinancing their current mortgage. As home prices rise, homeowners can use the increased equity in their home to refinance with better rate terms, remove mortgage insurance, or refinance with cash. These options can free up monthly cash to invest more or pay off other high interest debt.

For potential buyers and homeowners looking to refinance, getting a low interest rate isn’t the only thing to focus on. What’s more important than a rate is your total debt ratio and how much of a mortgage payment you can comfortably afford. When buying or refinancing, these numbers will give you the best idea of ​​how much home you can afford and how likely you are to be approved for a loan.

ABOUT LATEST MORTGAGE RATES

Last week’s average mortgage rate is based on mortgage rate information provided by national lenders to Bankrate.com, which, like NextAdvisor, is owned by Red Ventures.

How many houses can I afford?

Mortgage lenders will look at the debt-to-income ratio (DTI) before approving a loan. The DTI compares total monthly debt payments to monthly gross income. Your credit report contains most of the information a lender needs to determine your monthly debt payments. This can include car payments, mortgage payments, student loans, and minimum monthly credit card payments.

The total of these monthly debt payments is then divided by your monthly income to calculate your DTI using this formula:

Total debt / total income before tax = DTI%

Most conventional loans will allow a DTI of up to 50%. However, you might be limited to a lower DTI depending on the characteristics of your loan. Your credit history, credit rating, length of employment, loan-to-value ratio, and amount of assets you own are just a few things that can affect your maximum DTI allowed. Additionally, some lenders may have more stringent requirements regardless of other qualifying factors. If you are concerned that your DTI may cause problems in qualifying for a loan, you can request more information from the lender. And there are always other options if you can’t qualify for a conventional loan.

Why is DTI important?

It is important to pay attention to your DTI so that you know the amount of your debt compared to your income. When it comes to taking out a mortgage, borrowing the maximum amount a lender is willing to lend to you is not recommended. You don’t want to stretch your budget too much to account for other homeownership costs and contingencies. You’ll also want to factor in saving for retirement and contributing to an emergency fund after you’ve paid off your mortgage and tallied taxes and payroll deductions.

You can use the NextAdvisor mortgage calculator to determine your monthly mortgage payment amount based on the value of the home, the interest rate, and the length of the loan.

After determining a monthly payment that you’re comfortable with, here’s an example of how a lender can calculate DTI:

Example of debt Example of payment amount
Student loans $ 200
Payment by credit card $ 100
Car payment $ 300
Total monthly payment for housing $ 1,200
Everything above combined debt $ 1,800
Total monthly income (before tax) $ 4,800
DTI Total debt $ 1,800 divided by total income before taxes $ 4,800 = 37.50% DTI

Lenders will calculate your DTI by adding up all monthly student loan, credit card, car payment, and mortgage payments. In the example above, the debt payments total $ 1,800 per month, divided by the gross income before tax of $ 4,800 to get a final DTI of 37.50%.

However, it’s best to go further and look at your take-home pay (after tax). If we assume that 30% of the $ 4,800 in monthly income is spent on taxes and other payroll deductions, that means you would only see $ 3,360 of income deposited into your bank account. Subtracting the $ 1,800 monthly debt payments would leave you with $ 1,560.
Calculating your DTI can help you determine how much a lender might be willing to let you borrow. But that should only be one thing to consider when applying for a mortgage. It’s also essential to think about a comfortable monthly mortgage payment and the overall cost of homeownership.


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Homeowners face new risks and costs associated with extreme weather conditions https://4wallsandaview.com/homeowners-face-new-risks-and-costs-associated-with-extreme-weather-conditions/ https://4wallsandaview.com/homeowners-face-new-risks-and-costs-associated-with-extreme-weather-conditions/#respond Sat, 02 Oct 2021 18:40:36 +0000 https://4wallsandaview.com/homeowners-face-new-risks-and-costs-associated-with-extreme-weather-conditions/ Homeowners are now seeing the real and personal cost of climate change, as some homes risk becoming increasingly expensive to insure, forcing property values ​​to plummet and pushing out interested buyers. Starting this month, new policies from the National Flood Insurance Program Will no longer include the subsidized plans that, for decades, have helped support […]]]>

Homeowners are now seeing the real and personal cost of climate change, as some homes risk becoming increasingly expensive to insure, forcing property values ​​to plummet and pushing out interested buyers.

  • Starting this month, new policies from the National Flood Insurance Program Will no longer include the subsidized plans that, for decades, have helped support home values ​​in some of the most dangerous flood zones.
  • Existing policies may start to see changes in premiums in six months.

Why is this important: Housing development and population density patterns will change as parts of the country become virtually uninsurable due to more frequent extreme weather events and sea level rise.

Catch up quickly: Lower-value homes have paid more than their share of the risk than higher-value homes, and the Federal Emergency Management Agency has said it can now “distribute premiums fairly” based on flood risk individual properties and the value of the house.

  • In the past, bonuses were basically based on two numbers: house elevation and centennial flood elevation, which is the height of the water during a flood that has a 1% chance of occur in a given year. .
  • FEMA’s Risk Rating 2.0, announced in April, incorporates more risk variables than previous methodologies, including frequency of flooding, types of flooding, distance to water sources, elevation, and reconstruction costs.

The result: Older homes owned by less well-off people will be more likely to see much higher premiums relative to home values, says Rob Moore, director of the Water and Climate team at the Natural Resources Defense Council.

Yes, but: “You want to send the right market signal with the cost of insurance. You at least want people to understand the risks, [and] that insurance is expensive because the risks are high, ”Moore told Axios.

  • Therefore, “insurance can be part of a bigger solution,” says Max Rudolph, risk consultant, “that will prevent people from growing in areas. [where] the risk is much higher. ”

In New Jersey, for example, the rate of sea level rise is about three times the world average.

  • Despite this, most of the more than 4,500 new homes (larger and more expensive than previous ones) built after Hurricane Sandy were being built at a rate three times faster than those in safer areas.

The big picture: Lenders, insurers and homeowners will need to start assessing long-term risks.

  • Rudolph says buyers should ask themselves why they are interested in buying a property with a 30-year mortgage when there is no certainty of its future value or existence given climate change. “And as the issuing bank of the loan, why am I interested in writing this loan? “
  • “There are a lot of rules of thumb that need to be reviewed.”

What to watch: One in 10 US properties is now at significant risk of flooding, according to a Bloomberg analysis.

  • According to the new risk model, 6 million more properties are now at risk of flooding, concentrated in the eastern half of the United States, particularly in Louisiana, Delaware and New Jersey.
  • This number will increase by a further 11%, or 1.6 million, over the next 30 years as populations increase in these regions, given current warming conditions.


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Supreme Court, Auto News, ET Auto https://4wallsandaview.com/supreme-court-auto-news-et-auto/ https://4wallsandaview.com/supreme-court-auto-news-et-auto/#respond Sat, 02 Oct 2021 05:30:00 +0000 https://4wallsandaview.com/supreme-court-auto-news-et-auto/ An insurance claim can be denied if a vehicle does not have a valid registration, the Supreme Court said Thursday while dismissing a claim for theft of a car that had a temporary registration. A bench led by Judge UU Lalit said the insurance amount claim would be dismissed if there was a fundamental breach […]]]>
An insurance claim can be denied if a vehicle does not have a valid registration, the Supreme Court said Thursday while dismissing a claim for theft of a car that had a temporary registration.

A bench led by Judge UU Lalit said the insurance amount claim would be dismissed if there was a fundamental breach of the terms and conditions of the policy.

“What is important is the opinion of this Court on the law, that when an insurable incident which potentially results in liability occurs, there should be no fundamental breach of the conditions contained in the insurance contract. “said the judiciary also including judges S Ravindra Bhat. and Bela M Trivedi.

The submissions were made during the hearing of an appeal filed by United India Insurance Co Ltd challenging an order of the National Consumer Disputes Recovery Commission which dismissed the company’s review petition challenging the order. of the Rajasthan State Consumer Dispute Resolution Commission, Circuit Bench in Bikaner.

As the case may be, Sushil Kumar Godara, a resident of Rajasthan, obtained an insurance policy from the insurer for his Bolero car, somewhere in Punjab, despite residing in Sri Ganganagar, Rajasthan.

The vehicle, whose sum insured was 6.17 lakh, had a temporary registration which expired on July 19, 2011.

As the complainant was a private entrepreneur, he had to be out of town for business purposes.

On July 28, 2011, the Complainant traveled to Jodhpur on business and spent the night in a guesthouse where his vehicle was parked outside the premises. He discovered in the morning that the car had been stolen.

He filed an FIR in Jodhpur alleging the commission of offenses under section 379 (theft) of the Indian Penal Code.

However, on November 30, 2011, police filed a final report stating that the vehicle was not found.

The trial court noted that on the date of the theft, the vehicle had been driven / used without a valid registration, which is a flagrant violation of Articles 39 and 192 of the Motor Vehicle Act 1988.

“This results in a fundamental violation of the terms and conditions of the policy, as held by this Court in Narinder Singh (supra), allowing the insurer to repudiate the policy.

“This court is of the opinion that the order of the NCDRC cannot be upheld,” the magistrate said.

While ordering is most favorable for general insurers as they receive a lump sum up front, there are different voices within the industry as ordering makes the playing field uneven.


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Wells Fargo Study Shows Most Americans Aren’t Prepared For Natural Disasters: How To Prepare Yourself https://4wallsandaview.com/wells-fargo-study-shows-most-americans-arent-prepared-for-natural-disasters-how-to-prepare-yourself/ https://4wallsandaview.com/wells-fargo-study-shows-most-americans-arent-prepared-for-natural-disasters-how-to-prepare-yourself/#respond Fri, 01 Oct 2021 18:36:47 +0000 https://4wallsandaview.com/wells-fargo-study-shows-most-americans-arent-prepared-for-natural-disasters-how-to-prepare-yourself/ A new study from Wells Fargo shows that many Americans are unprepared for a natural disaster. (iStock) Natural disasters continue to be a problem in the United States, and a new study from Wells Fargo shows that many Americans are not physically or financially prepared when they strike. About 84% of Americans currently live in […]]]>

A new study from Wells Fargo shows that many Americans are unprepared for a natural disaster. (iStock)

Natural disasters continue to be a problem in the United States, and a new study from Wells Fargo shows that many Americans are not physically or financially prepared when they strike.

About 84% of Americans currently live in areas that have experienced some form of natural disaster in the past three years, according to the study released Sept. 22. And 54% of those surveyed live in areas that have experienced severe natural disasters such as hurricanes, tornadoes, floods, forest fires or earthquakes. Additionally, 72% of Americans said their families had been personally affected by a natural disaster at some point in their lives.

However, despite this proximity to natural disasters, 71% of Americans said they did not have a detailed plan in case they were hit by one, according to the survey.

One way to make sure you’re ready is to choose the right home insurance plan. With the right home insurance, you can be better prepared financially in the event of a loss. Visit Credible to compare plans from multiple companies and see which one is right for you.

Many Americans are unprepared for natural disasters

Among Americans who said they are unprepared for a natural disaster, 40% said they never thought about making a plan, 35% were more focused on immediate problems, 31% didn’t didn’t and 16% said they didn’t know how to prepare, according to the survey.

“The investigation confirms a lack of physical preparation as well as financial preparedness for emergencies for most people,” said Rullah Price, manager of public affairs resilience and corporate incident communications at Wells Fargo. “Since half of those surveyed said they would like their bank to proactively help them plan for a natural disaster, I think Wells Fargo has the opportunity to educate and inspire people to make changes for the better – from now on. “

If you’re looking for ways to prepare, you might consider purchasing home insurance that covers damage from the most common natural disasters in your area. Having the right coverage can save you money in an emergency, and comparing multiple providers can also help you save on your monthly payments. Visit Credible to enter your information once and see the offers of several suppliers.

Plans and finances are incomplete

The Wells Fargo investigation found that even when consumers have a plan, it is often incomplete. Of those who had a plan, 78% prioritized food and water supplies, 63% included emergency money, 61% wanted access to important documents and 59% listed a planned transport and evacuation route. The plans also included lower priority items such as medical needs (54%), a family communication plan (52%), a refuge plan (49%) or a plan for pets (44%).

“Most people’s plans lack detail,” Price said. “There is a need to really think through all the possible scenarios. For example, only a quarter of respondents presented specific plans for household members of different ages. This is extremely important for vulnerable people like children and children. seniors.”

Important items to include in a preparedness evacuation plan kit, in case of a storm or other emergency, include:

  • Battery
  • Drugs, prescriptions and other medical care
  • First aid kit
  • Flashlights
  • Blankets
  • Non-perishable food

To make sure you’re prepared for any scenario, create a contingency plan and prepare your home. And make sure you have the right coverage, like potential flood insurance. You can visit Credible to get prequalified for home insurance in minutes without affecting your credit score.

In addition to not being physically prepared, the study also found that only 44% of Americans have emergency savings accounts, and many don’t keep cash. Another 39% said they don’t keep emergency cash at home, and 11% have $ 100 or less at home.

“We are moving towards a cashless society, but in an emergency cash is what is needed,” Price said. “In the event of a natural disaster, you may not have easy access to an ATM and credit cards may not work in the event of a power outage. It is important to be prepared for all possible events. . “

If you’re facing the impacts of a national disaster and don’t have emergency savings, you might consider taking out a personal loan when interest rates are near their all-time low. This can help you cover immediate needs. Visit Credible to compare personal loan options from several lenders at once.

How to prepare for a natural disaster

To make sure Americans are prepared for a natural disaster, there are a few steps they can take. One of them is to create an emergency kit that includes important documents like passports, social security cards and birth certificates. It should also contain food and water, extra money, and other necessities.

Americans should also have their finances in order and keep an emergency savings account. If they don’t have enough in their account to cover their needs or emergency repairs, personal loans are available to help cover the expenses. Visit Credible to find your personalized rate.

Homeowners should also make sure that they have sufficient coverage for natural disasters that could strike their area. Visit Credible to speak to a home insurance expert and get 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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