June 13th, 2014
Lenders aren’t exactly giving jumbo loans away, but they’re certainly making it easier for borrowers to snag one.
In an effort to pick up the pace of their loan growth, more banks are offering jumbo loans to borrowers who can make up for poorer credit scores and unproven income with other assets like investment accounts and stock grants.
Jumbo loans don’t come cheap. They’re “jumbo” because they exceed the conforming loan limit, which is the maximum loan size that Fannie Mae and Freddie Mac will purchase and/or guarantee. In most areas, this limit is $417,000 for a single-family home. In high-cost places like New York, the limit can start above $625,000.
How are lenders becoming more lenient?
In addition to giving candidates who don’t meet all the requirements some leeway, lenders are also offering more attractive rates to entice consumers. Recent rates for a 30-year fixed jumbo loan have averaged 4.25 percent, 0.10 percent less than the average rate for a conventional 30-year fixed-rate mortgage. This is the first time in over 20 years that jumbo rates are equal to or cheaper than conventional rates! And last year, Wells Fargo and Bank of America made headlines by slashing the minimum down payment from 20 percent to 15 percent.
September 23rd, 2013
For most people, student loans represent their first encounter with the world of credit and finance. They can open a world of opportunity to young people who might otherwise not be able to pay to continue their education. More than 60% of American students (that’s almost 12 million in total) will borrow money annually to help pay for college. It’s likely that this is where you’ll begin to build your credit score: a little number with huge consequences. It can be intimidating, but there’s really no reason to stress out. Staying in control of your student debt is easier than it sounds. When dealing with loans, you should:
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July 3rd, 2013
Students heading back to school this fall with new student loans could be shelling out more money. The deadline to raise the federal student loan rate passed without a vote on July 1st. Congress left for the their July 4th recess with no resolution, allowing interest rates on new subsidized Stafford loans to increase to 6.8 percent from 3.4 percent.
May 30th, 2013
Welcome a new member to the online-only personal loan space! Chicago-based AvantCredit aims its unsecured loans at consumers with credit scores between 620 and 720—a nearly-prime community rarely served by other lenders. Like NetCredit, AvantCredit hopes to bridge the gap between payday loans and traditional personal loans. Its loans range from $1,000 and $10,000 and are payable over one to three years, depending on the terms you receive.
November 13th, 2012
Picture this: You’re starting a new business, say a hat shop. You need a small business loan to get the Hat Shack up and running, but each bank you visit has tightened its purse strings. Loans are difficult to come by, and they have high credit score requirements. Where do you go so you can get your shop ready to go before hat season? Enter Borro, an online pawnbroker that extends secured personal loans backed by valuable assets.
September 21st, 2012
I got my first full time job in April 2010 as a Social Media Coordinator. Before that, I had been a broke college student surviving off credit cards, especially after I quit my part-time receptionist job to take care of my mom when she got sick.When I moved into my own place with my boyfriend (now husband), we were both making good money, but I was just paying the minimums on my cards month to month. It’s not that it wasn’t manageable, but I would’ve preferred to get out of debt sooner than later, and see some sort of light at the end of the tunnel.
December 8th, 2011
When it comes to finding money to take care of financial obligations these days, your options are even more limited than ever before. Thanks to the credit crunch, banks and other financial institutions have made it more difficult than ever to borrow money. Those that will lend will only do so to individuals with an excellent credit score and charge a premium for the privilege. Many people are caught in the crosshairs and simply don’t qualify for a loan.
October 31st, 2011
The American Bankers Association (ABA) recently released a worrisome report. According to a second quarter review, delinquencies amongst American consumers are on the rise. At the heart of these delinquencies are bank card debts and defaults. A close second to bank cards is home equity lines and loans—specifically auto loans.
September 21st, 2011
If life were like a car commercial, you’d walk into a dealership, point to the shiny new red sports car, and drive away. Sadly, life is not a car commercial. Buying a car includes deciding whether to take out a loan, sign up for a lease, or pay for your new vehicle with cash. All three options include details that you’ll want to carefully weigh and consider.
August 31st, 2011
It happens to the best of us.
We find ourselves strapped for cash with nowhere to turn and payday is still two weeks away. When you need cash fast, some loans might seem appealing, but even in times of extreme financial desperation, there are three types of loans you should always steer clear of.
Here we’ll show you why they’re risky and how you can avoid them.