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
The future of the Help to Buy scheme (also known as an equity loan) has been called in to question this week after it was revealed that almost a fifth of people who took the loans were upgrading to a larger home, with some people on six-figure salaries using Government funds to buy their property. Critics say the scheme has artificially inflated house prices and house builders’ profits, at a cost to the Government of £9 billion – and counting. But supporters point out that Help to Buy has been used by almost 170,000 people since it launched in 2013 and housebuilders are pressuring the Government to continue to fund it beyond 2021. Stewart Baseley, executive chairman of the Home Builders Federation said: “Housebuilders continue to invest in the land, materials and people needed to deliver furthers increases in supply, confident in the demand Help to Buy is underpinning. “Certainty moving forward is now required, to enable increases in housing supply, and the … [Read more...] about Are Help to Buy equity loans about to be scrapped? Here’s what you need to know
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
If you’re looking to make home improvements, pay medical expenses or finance a college education, your home can be a source of extra cash. A HELOC, or home equity line of credit, is a loan that is secured by your property, based on the equity in your home. There are a number of advantages to obtaining a HELOC, according to Bankrate. First, it’s typically easy to be approved for a HELOC if you have a lot of equity in your home. Additionally, if you’ve been thinking of taking out a second mortgage, it’s important to note that the interest rate on a HELOC may be lower, and you only pay interest on the amount you’ve borrowed on the line of credit, similar to a credit card, adds Bankrate. Unlike a conventional loan, you may keep borrowing on the unused amount, up to the maximum approved limit, as long as you keep paying down the line of credit. You may also pay less in closing costs. When a HELOC matures, you are required to pay off the balance all at … [Read more...] about What is a home equity line of credit?
GETTING your foot on the property ladder can feel like an impossible task. Nowadays, first time buyers are expected to fork out around £50,000 on a mortgage deposit, so it's no wonder that the average Brit isn't likely to become a homeowner until they're 33. Even though the Chancellor offered a helping hand by scrapping stamp duty first-time buyers, estate agents reckon it's showed little sign of boosting the housing market. Add in spiralling house prices and first-time buyers waiting an average of seven years to save up their deposit, it can all feel a bit glum, particularly if the bank of mum an dad isn't an option. But it is doable and there are ways you can get the financial support you need, you just need to know where to look. From government schemes to part ownership, here's how you can become a home owner. What is Help to Buy? Help To Buy is a government scheme designed to help people get on the property ladder without the need for the large, up-front deposit which puts … [Read more...] about What are Help to Buy and Shared Ownership and are there other government schemes to help you buy your first home?