5 Times a Home Equity Loan Makes Sense

Taking out a home equity loan for the wrong reason or at the wrong time could cost you big.

If you owe less on your home than it’s worth, you have equity. With a home equity loan, you borrow against that equity and pay the loan back in equal monthly installments for a preset number of years (typically, five to 30 years). The amount you can borrow is usually capped at 80% to 85% of available equity. For example, if your home is worth $300,000 and you owe $200,000, you have $100,000 in equity. That means you may be eligible to borrow $80,000 to $85,000 in a home equity loan.

When you take out a home equity loan, your home acts as collateral, meaning a lender can repossess your house if you fail to make payments. Home equity loans can be useful, but it is crucial to consider whether you

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Home closings increase in 2020 along coastal SC counties despite COVID pandemic | Myrtle Beach Business

Myrtle Beach Realtor Travis Muir put a condo up for sale in September at Blue Water Resort on Ocean Boulevard and within an hour, it was sold.

Not an every day occurrence, the realtor for The Hoffman Group admits. But, after all, it’s 2020 and anything can happen.

“The biggest thing is pricing it within realistic market price,” Muir said, adding 2020 has been his best year for sales, pushing nearly triple what he normally does.

“With this one being an investment property, the price point for the rate of return… I think one of the biggest things, too, is the interest rates are lower than they have been in a very long time. That gives people more incentive to go ahead and make that jump. They were thinking of buying in a two- or three-year window, but now with the interest rates so low, people are moving faster.”

Closed

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Will Lower Mortgage Rates Aid NVR to Post Higher Q3 Earnings?

NVR, Inc.’s NVR third-quarter 2020 earnings and revenues are expected to have registered an improvement on a year-over-year basis.

In the last reported quarter, the company’s earnings and revenues missed the Zacks Consensus Estimate by 5.3% and 3.5%, respectively. On a year-over-year basis, earnings and revenues decreased 19.9% and 10%, respectively, as the COVID-19 outbreak had a significant impact on all facets of its busines.

Nonetheless, the company has a strong earnings surprise history, having surpassed analysts’ expectations in 12 of the trailing 14 quarters.

Trend in Estimate Revision

For the quarter to be reported, the Zacks Consensus Estimate for earnings per share has increased 1.3% to $62.01 over the past seven days. The estimated figure indicates an increase of 10.5% from the year-ago quarter. The consensus mark for revenues is pegged at $2 billion, suggesting a 7% increase from the year-ago reported figure of $1.87 billion.

NVR, Inc.

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Incomings, outgoings and loans: The deals Sunderland still want to do before the transfer window closes

Sunderland have until 5pm on Friday to finalise their business, with Phil Parkinson still active on several fronts ahead of the deadline.

And with a clear week ahead of him, and a weekend without game having just passed, transfers are a prime focus at the Academy of Light.

So what deals do the Black Cats still want to do before this week’s deadline? We take a look:

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The deals Sunderland still want to do before the transfer window closes
The deals Sunderland still want to do before the transfer window closes

THE DEFINITE REQUIREMENTS

It’s no secret that Sunderland have long been in the market for a left-sided defender, and have observed a number of potential options.

Demetri Mitchell spent time on trial at the Academy of Light earlier this summer, while former Burnley youngster Ali Koiki is another name who has reportedly been under consideration by the

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Why bankers are so worried about their small business loan books

That means that 57 per cent of people whose home loan deferrals were due to expire in September – some 22,900 borrowers owing a total of $8.7 billion – felt they were now in a position to meet their loan repayments.

As a result, the Commonwealth Bank has seen a gratifying improvement in its home loan book in the past month alone.

At the end of August, 9.8 per cent of its giant home loan portfolio (measured in terms of value) consisted of loans in deferral. By the end of September, this had dropped to 8.0 per cent. (This translates into some 93,000 home loans, with a combined value of some $37 billion.)

What’s more, October is likely to see a further steep fall in deferred home loans, with deferrals due to expire on some 52,000 home loans (worth a combined $20 billion).

If more than half of home loan

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How to land an ultra-low 15-year mortgage rate for your refinance

Thanks to this year’s historically low mortgage rates, refinancing remains a popular activity among homeowners — and it has taken on more urgency as a new refi fee threatens to push rates higher this fall.

A 30-year fixed-rate mortgage might be a borrower’s automatic first choice for a refi loan. But if you’ve been in your house a few years, refinancing to a 15-year mortgage can keep you from dragging out the debt and piling up massive interest costs.

The monthly payments on a 15-year home loan can be steeper, but the interest rates are lower: currently near an all-time low at an average 2.37%, which is one-half of 1 percentage point (0.50) below the typical 30-year mortgage rate, according to mortgage company Freddie Mac.

Some borrowers in 2020 have been able to score 15-year rates in the low 2s or even under 2%.

Could you? Here are four tips

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How you can buy a home with a low-down-payment FHA mortgage

Many people consider homeownership part of the American dream — but can’t dream of landing a traditional mortgage. That’s why FHA loans exist.

These loans that are backed by the Federal Housing Administration are popular with first-time buyers and those with lower incomes. While you might need a credit score of 620 for a conventional loan, you could be approved for an FHA loan with a score of 500. And you could be eligible for a down payment of only 3.5%.

They’re not just for new buyers, either. You can use your FHA loan to refinance your mortgage or even repair an older home.

Sound appealing? FHA loans do offer some attractive features, but they may not be right for everyone.

How do FHA loans work?

Jirapong Manustrong / Shutterstock

Congress established the Federal Housing Administration in 1934 to help borrowers get a mortgage, especially those who would otherwise

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Weekly High Frequency Indicators: Slow Improvement Has Continued

Purpose

I look at the high frequency weekly indicators because while they can be very noisy, they provide a good nowcast of the economy and will telegraph the maintenance or change in the economy well before monthly or quarterly data is available. They are also an excellent way to “mark your beliefs to market.” In general, I go in order of long-leading indicators, then short-leading indicators, then coincident indicators.

A Note on Methodology

Data is presented in a “just the facts, ma’am” format with a minimum of commentary so that bias is minimized.

Where relevant, I include 12-month highs and lows in the data in parentheses to the right. All data taken from St. Louis FRED unless otherwise linked.

A few items (e.g., Financial Conditions indexes, regional Fed indexes, stock prices, the yield curve) have their own metrics based on long-term studies of their behavior.

Where data is seasonally adjusted,

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Key Income Tax Changes for Mortgage Interest

Congress keeps chipping away at itemized deductions like the one for mortgage interest. This includes the latest changes under the Tax Cuts and Jobs Act (TCJA) for 2018 through 2025. The good news: Generally, you can still deduct most or all of the mortgage interest you pay if you continue to itemize deductions on your personal tax return.

Background: Prior to the TCA, you could deduct the interest paid on either acquisition debt or home equity debt, or both, within generous limits.

  • Acquisition debt: This is defined as a debt where you use the mortgage proceeds to buy, build or substantially improve the home. Typically, acquisition debt represents the main part of a mortgage interest deduction. To qualify for the write-off, the loan must be secured by a qualified residence, such as your principal residence or a second home like a vacation home. The interest is deductible on loans
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The top 9 reasons for personal loans

Personal loans are borrowed money that can be used for large purchases, debt consolidation, emergency expenses and much more. These loans are paid back in monthly installments over the course of typically two to six years, but it can take longer depending on your circumstances and how diligent you are with making payments.



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Birdseye view of desk

Here are the top six reasons to get a personal loan and when they make sense:

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  1. Debt consolidation.
  2. Alternative to a payday loan.
  3. Home remodeling.
  4. Moving costs.
  5. Emergency expenses.
  6. Appliance purchases.
  7. Vehicle financing.
  8. Wedding expenses.
  9. Vacation costs.

Get pre-qualified

Answer a few questions to see which personal loans you pre-qualify for. The process is quick and easy, and it will not impact your credit score.

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How personal loans work

Once you get approved for a personal loan, the funds you receive will be disbursed in a

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