Adam Shell USA TODAY Published 5:52 PM EDT Oct 5, 2018 It's not just short-term interest rate hikes from the Federal Reserve that are affecting the personal finances of Americans. The recent spike in the yield of the 10-year Treasury note to nearly 3.25 percent -- its highest level since the spring of 2011 -- will also have an impact on borrowing costs and investment portfolios. The yield on the key U.S. government bond, whose movements are determined by investors and traders based on drivers like economic growth and inflation, influences the prices of things -- from fixed-rate mortgages to stocks. The recent surge in the so-called "long-term" bond is catching the attention of Wall Street economists and money managers. Why? It's the latest sign that the nearly decade-long era of low borrowing costs is coming to a close as the economy gains steam. Many Americans will start feeling an additional financial pinch … [Read more...] about 10-year Treasury rate: How yield’s 7-year high pinches Americans
30 year home equity loan rates
First-time buyers need a £53k salary to afford a home in UK’s biggest cities
FIRST-time buyers need an income of at least £53,000 for a home in Britain’s 20 biggest cities, a study has found. The sum is up by £8,000 — 18 per cent — in three years due to sharp house price growth. In London, they need an average income of £84,250. But that amount has risen only one per cent since 2015 due to market stagnation. Buyers in Manchester or Bristol need an income 24 per cent higher than three years ago, said analysts Hometrack. It shows how quickly property prices have outstripped wage growth. In Birmingham, Nottingham and Leicester buyers now need 23 per cent more. In pricey Cambridge the earnings needed have fallen by three per cent but still stand at £74,000. The figures assumed buyers would take out a repayment mortgage over 30 years, would not borrow more than four times their salary and would spend up to 30 per cent of gross income on mortgage costs. Hometrack also used average mortgage interest rates and the size of … [Read more...] about First-time buyers need a £53k salary to afford a home in UK’s biggest cities
Fed decision: How mortgages, credit cards, savings react to rate hikes
Paul Davidson USA TODAY Published 3:32 PM EDT Sep 26, 2018 The Fed announced another rate hike Wednesday and that means higher borrowing costs for Americans. But the move should also continue to push up savings rates for bank customers who are finally starting to see some decent returns. Rates on credit cards, adjustable-rate mortgages and home equity lines of credit will rise, experts say, increasing Americans’ monthly payments. All are revolving loans with variable rates that are directly affected by the Fed’s move. The Federal Reserve bumped up its benchmark short-term rate by a quarter percentage point to a range of 2 percent to 2.25 percent. It also kept its forecast for another hike this year, and three more in 2019. “Rates are only going to go up,” says Nick Clements, co-founder of MagnifyMoney, a personal finance website. “That means life is going to get more expensive for debtors, and more rewarding for savers. If you are in debt, now … [Read more...] about Fed decision: How mortgages, credit cards, savings react to rate hikes
Home equity loans may cost firms billions
Business By Howard Mustoe Business reporter 7 August 2018 Share this with Facebook Share this with Messenger Share this with Twitter Share this with Email Share this with Facebook Share this with WhatsApp Share this with Messenger Share this with Twitter Share Share this with These are external links and will open in a new window Email Share this with Email Facebook Share this with Facebook Messenger Share this with Messenger Messenger Share this with Messenger Twitter Share this with Twitter Pinterest Share this with Pinterest WhatsApp Share this with WhatsApp LinkedIn Share this with LinkedIn Copy this link https://www.bbc.co.uk/news/business-44992836 Read more about sharing. These are external links and will open in a new window Close share panel UK pension companies may be harbouring billions of pounds of losses from home equity release loans, … [Read more...] about Home equity loans may cost firms billions
Blogger bought home at 23 WITHOUT help of bank of mum and dad – she reveals how you can do it too
A LIFESTYLE and fashion blogger has revealed how she got on to the property ladder at just 23 - without any help from the bank of mum and dad. Jade Vanriel, who's now 25, from Essex, bought her two bedroom flat two years ago after putting down a £30,000 deposit. Single first-time buyers face saving for over a DECADE for a 15 per cent deposit, and up to 17 years for Londoners. So it's no wonder that around of third of Brits (31 per cent) reckon the only way they'll be able to afford to do it is with a partner, according to Skipton Building Society survey. Jade managed to defy the odds and saved for the 20 per cent deposit while she was studying law at university, but it meant cutting back on partying, taxis and clothes. "I stopped spending on coffee and lunches and began bringing in all my meals - it really does add up," Jade said in a money saving video on her YouTube channel. "See if you can limit your clothes buying and going out partying and eating,- sacrifice your lifestyle … [Read more...] about Blogger bought home at 23 WITHOUT help of bank of mum and dad – she reveals how you can do it too