American Express suspends operations in Russia and Belarus

American Express Co said it was suspending all operations in Russia and Belarus, joining a growing number of Western corporations to boycott business there over Moscow's invasion of Ukraine.

"In light of Russia's ongoing, unjustified attack on the people of Ukraine, American Express is suspending all operations in Russia," the credit card company said in a statement on its website.

"We are also terminating all business operations in Belarus," American Express said.

American Express follows US counterparts Visa Inc and Mastercard Inc, which announced a suspension of their Russian operations the previous day, as well as payments company PayPal Holdings Inc.

American Express said its globally issued cards would no longer work in Russia at merchants or at ATMs. In addition, cards issued by Russian banks in Russia would no longer work outside the country on American Express' network.

The company said it has already suspended its relationships with Russian banks affected by US and international sanctions.

-reuters

Citi to exit consumer banking in Mexico

NEW YORK, United States - Citi announced Tuesday it will exit its Mexican consumer banking business, the latest reorganization effort to steer the US financial heavyweight towards higher-return ventures.

The New York-based bank plans to cease operations in Mexico in consumer, small business and middle-market customers, but will maintain an institutional client business in the country to provide financial advisory and private banking services.

Chief Executive Jane Fraser said the move was consistent with a "strategy refresh" that included earlier moves to pare back consumer banking in other overseas markets.

"Citi is uniquely positioned to support cross-border capital markets activity and trade flows in and out of Mexico for our institutional clients and we will continue to make material investments in our institutional operations and market-leading hub there," Fraser said.

Citi announced plans in April 2021 to exit 13 international consumer banking markets where the bank said it lacked the scale to compete effectively.

The businesses Citi is shedding in Mexico -- it's last in Latin America -- accounted for $3.5 billion in revenues and $1.2 billion in pre-tax earnings through the first three quarters of 2021.

The bank said the timing of the move is unclear since it depends on regulatory approvals, but could involve a sale pf the business lines.

Agence France-Presse

Wall Street dips after worldwide slide; gold nears record

NEW YORK (AP) — Wall Street is slipping on Friday after tensions ramped higher between the world’s two largest economies, though the market pared its losses as the morning progressed.

The S&P 500 was 0.4% lower in midday trading, which would wipe out the last of its gains for the week. The Dow Jones Industrial Average was down 118 points, or 0.4%, at 26,534, as of 11:30 a.m. Eastern time, and the Nasdaq composite was down 0.5%. Each of the indexes had been down more sharply in the morning, with the Nasdaq off by as much as 2.3%.

Stocks also sank across Asian and European markets, and all the uncertainty helped gold top $1,900 per ounce, close to its record high. Treasury yields were holding relatively steady, but they remain close to their lowest levels since April.

The coronavirus pandemic remains the most dominant force in markets, with its potential to destroy lives and economies. But other risks are also bubbling up, headlined by Friday’s worsening relations between the United States and China.

Investors are also concerned about a recent uptick in layoffs as spiking coronavirus counts across the Sun Belt lead more businesses to shut down. Extra benefits for those out-of-work Americans from the federal government are set to expire soon, and worries are rising about whether Congress can reach a deal on more aid for the economy. Nearly half of Americans whose families experienced a layoff during the pandemic believe those jobs are lost forever, according to a poll from The Associated Press-NORC Center for Public Affairs Research.

Despite all those challenges, the S&P 500 remains only about 5% below its record set in February, after roaring back from an earlier, nearly 34% plummet. This week’s stall for the S&P 500 follows three straight weekly gains driven by hopes that the economy was regaining its footing. Underlying it all is massive aid for the economy promised by the Federal Reserve, including record-low interest rates.

“The Fed is the big story behind this market, that and the liquidity it’s provided,” said Teresa Jacobsen, managing director at UBS Private Wealth Management. “It gives a great deal of support for upside in the market. But, there are momentary blips when we pause and give a little back.”

On Friday, the blip came after China’s Foreign Ministry ordered the closure of the U.S. consulate in the western city of Chengdu. It echoes a similar move earlier this week by the United States to close the Chinese consulate in Houston.

Such moves have investors on edge because of how viciously markets swung in prior years when President Donald Trump was pressing his trade war with China, before they agreed to a temporary truce early this year.

“Alongside the eviction of the Houston Chinese Consulate, the risk of the U.S.-China conflict escalating into a ‘Cold War’ is worrying,” said Hayaki Narita of Mizuho Bank.

A speech Thursday by U.S. Secretary of State Mike Pompeo saying that “securing our freedom from the Chinese Communist Party is the mission of our time” adds to the rhetoric certain to incense Beijing, making it still more difficult for either side to back down, he said.

Technology stocks have also been in the spotlight, after a sharp slide for them on Thursday helped drag the S&P 500 to its worst loss in nearly four weeks.

Microsoft, Apple, Amazon and other giants have cruised through much of the pandemic on expectations that they can keep growing despite all the challenges for the economy. But critics say enthusiasm for them was overdone, with prices too high even after accounting for the huge profits that they can produce

Apple slipped 0.6%, Microsoft dropped 0.2%, and tech stocks as a group accounted for roughly half of the S&P 500’s loss. Earlier in the morning, Apple had been down 4%, and tech stocks were responsible for two thirds of the S&P 500′s drop.

Intel sank 15.3% after it delayed the release of its new 7 nanometer chip, and it was the biggest weight on the market Friday morning.

Earlier in the day, stocks in Shanghai sank 3.9%, while the Hang Seng in Hong Kong lost 2.2%. Elsewhere in Asia, South Korea’s Kospi fell 0.7%.

In Europe, France’s CAC 40 fell 1.5%, and Germany’s DAX lost 1.9%. The FTSE 100 in London dropped 1.3%.

The yield on the 10-year Treasury held steady at 0.58%. It tends to move with investors’ expectations for the economy and inflation.

Gold rose 0.5% to $1,900.30 per ounce, crossing above that threshold for the first time in nearly nine years. Benchmark U.S. crude slipped 14 cents to $40.93 per barrel. Brent crude, the international standard, lost 10 cents to $43.21 per barrel.

AP Business Writer Elaine Kurtenbach contributed.

The Associated Press

Wall Street hits the brakes after strong, weekslong rally

Wall Street hit the brakes Tuesday, a day after its remarkable, weekslong rally brought the S&P 500 back to positive for the year and the Nasdaq to a record high.

The S&P 500 was down 0.9% in midday trading, after earlier being down as much as 1.2%. The Dow Jones Industrial Average was down 283 points, or 1%, to 27,281, and the Nasdaq composite was up 0.1%.

Skeptics have been saying for weeks that Wall Street’s huge rally, which reached 44.5% between late March and Monday, may have been overdone. The economy has given glimmers of hope that the recession could end relatively quickly as governments lift their lockdown orders, but the stock market has been soaring much more quickly than the economy and corporate profits are expected to.

“We’re seeing a little bit of a pause and a little bit of a reversal,” said Bill Northey, senior investment director at U.S. Bank Wealth Management. “Some of that is an appropriate reconciliation with the pace for the restart.”

IMPACT ON THE ECONOMY:

– Medicaid rolls swell in New Mexico amid economic turmoil
– A US recession began in February in the face of coronavirus
– Virus tourism impact gives Maui state's top jobless rate

In another sign of increased caution, the yield on the 10-year Treasury yield fell to 0.81% from 0.88% late Monday. It tends to move with investors’ expectations of the economy and inflation, though it’s still well above the 0.64% level where it started last week.

European stock markets were also lower. Germany’s DAX lost 1.4% after the country reported that its exports fell by a quarter in April. France’s CAC 40 slid 1.5%, and the FTSE 100 in London dropped 2.1%.

Asian markets were mixed. Japan’s Nikkei 225 slipped 0.4% after the government reported that wages fell in April as the country widened precautions to fight the coronavirus pandemic, which caused some businesses to close or limit their operations. But the Hang Seng in Hong Kong rose 1.1% and South Korea’s Kospi added 0.2%.

Wall Street has been generally rising since late March, at first on relief following emergency rescues by the Federal Reserve and Congress. More recently, investors have begun piling into companies that would benefit most from a reopening economy that’s growing again.

Banks, airlines, energy companies and others whose profits need the economy to get closer to normal have been leading the way in recent weeks. They got a big boost on Friday when the government said that employers surprisingly added jobs to their payrolls last month, a sign that the economy could pull out of the recession that began in February relatively quickly.

But such companies went into reverse on Tuesday. American Airlines and Alaska Air Group both fell more than 9% for some of the sharpest losses in the S&P 500, a day after they were near the top of the leaderboard.

Stocks in the energy, financial and industrial sectors fell more than the rest of the market, also mirroring their performance from a day before. Technology and communication services companies rose.

Smaller stocks also pulled back following a furious run. The Russell 2000 index of small-cap stocks fell 2.1%, after a 10.2% rally in a little more than a week.

Skeptics of the rally have been saying that many risks still lurk ahead on the long road to a full recovery. Chief among them is the possibility of a second wave of coronavirus infections, which could lead states across the country and nations around the world to tighten up on lockdown measures that could again choke the economy. Plus, one month of improving jobs data does not necessarily mean a trend.

The next big milestone for markets is coming Wednesday, when the Federal Reserve announces its decision on monetary policy following a two-day meeting. The Fed’s promise of immense, unprecedented amounts of aid helped stocks begin their rally, and investors want to see what their reaction will be to the recent upturn in jobs numbers.

___

AP Business Writer Yuri Kageyama contributed.

The Associated Press

5 Benefits on How to Protect Your Mortgage With Life Insurance

For potential homebuyers and current homeowners, a home is a costly investment with a long-term commitment. That's why every homeowner carrying a mortgage needs to get life insurance. Life insurance that covers a mortgage is called mortgage life insurance or mortgage protection insurance. This kind of insurance is designed to protect the lender, just in case they are unable to pay for their monthly mortgage fees. In this article, let's highlight five benefits on how to protect your mortgage with life insurance.

1. May protect homeowners due to sudden unemployment

With Canada's unemployment rate fluctuating every year, sometimes homeowners might face unexpected job loss due to termination or disability. The benefit of having mortgage life insurance alleviates the stress and financial burden related to unemployment by covering the period when the homeowner is out of work. At Northwood Mortgage, we offer a series of mortgage life insurance options that target the specific time frame if a homeowner loses their job, falls ill, or becomes physically disabled, causing unemployment.

2. May protect homeowners due to unexpected death

If the homeowner dies, the mortgage life insurance will cover the remaining amount left on the mortgage. Along with unemployment, death in the family can cause financial strain, especially when the homeowner passes away. Mortgage life insurance is a great benefit because homeowners are assured that after death, the mortgage will not become their family's responsibility.

3. Mortgage life insurance frees up your budget

When it comes to having mortgage life insurance, homeowners can free up their budget by the funds they get from other insurance policies. For example, the funds received from a personal life insurance or employer benefits could be used for payments on other financial obligations such as car payments, other bills, and university tuition. What would usually go towards the mortgage can be spent wisely on other expenses because the homeowner has mortgage life insurance.

4. Mortgage life insurance is convenient

Another benefit that mortgage life insurance offers is convenience. By covering unemployment, death, and other bills, it is an added layer of security in case unexpected circumstances should occur. With all its benefits, it is also easy to qualify. To purchase a mortgage life insurance policy, homeowners do not require to submit to a life insurance medical exam. This is a very convenient benefit to have for sickly individuals. In case the homeowner is denied life insurance due to medical illness, the homeowner with mortgage life insurance is financially protected.

5.Mortgage life insurance accommodates new homebuyers

For potential first-time homebuyers who can only afford a small down payment, getting mortgage life insurance can secure the home of their dreams. They can use mortgage life insurance through the Canada Mortgage Housing Corporation, which requires a 5% downpayment.

Northwood Mortgage
As you can see, choosing a mortgage insurance policy should be decided carefully. However, investing in mortgage insurance can safeguard you and your family's future in the long run.

At Northwood Mortgage, we have an expert staff of mortgage agents specializing in life insurance and mortgages in Toronto, Brampton, Mississauga, and the GTA. We take the time to listen to your needs, and we cater our services to each client.

If you would like more information on mortgage insurance coverage and protection in Toronto and the GTA, we invite you to book a FREE consultation with one of our Northwood Mortgage agents by calling 416-969-8130 ext. 111, toll-free at 888-492-3690, or contact us here. Once we receive your request, one of our mortgage agents will contact you within 24-48 hours to arrange an appointment.

northwoodmortgage.com

Getting It Straight: Conforming Loans vs. Non-Conforming Loans

Although mortgage translations are less than obvious, it’s palpable that most Canadians demand an elevated level of clarification when it comes to the pivotal commitment. A genuine comprehension of mortgage systems is trying enough, and when combined with deciphering a plethora of terminology, the task to many seems daunting. One strong example is distinguishing conforming loans from non-conforming loans. Getting it straight, once and for all, is vital.

Conforming Loans

A conforming loan is indicative of loan limit restrictions and, simultaneously, a number of unique preconditions are enforced. The Federal National Mortgage Association (FNMA or Fannie Mae) and Federal Home Loan Mortgage Corporation (FHLMC or Freddie Mac) are government-sponsored entities that prompt and administer the market for home loans. These agencies have definitive protocols and decrees that mortgages must observe. Statutes describe and define maximum loan amounts, advisable properties, preconditions for down payments, and credit stipulations to name a few. In essence, there are a plethora of details that are premeditated, which ultimately are most advantageous and unique to you and your capacities.

The fundamental appeal of a conforming loan is that they award a lower interest rate, analogous to non-conforming loans. This constitutes lower monthly mortgage payments and, ultimately, less spending throughout the life of your investment.

Non-Conforming Loans

A non-conforming loan does not observe Fannie Mae or Freddie Mac and, consequently, cannot sell to these divisions of government. Judged as tricky and encompassing a higher level of risk, they are a challenging sell with banks imposing higher interest rates. In essence, banks write the bulk of mortgages, then conclusively settle on the portfolios of FNMA or FHLMC after being purchased from financial institutions. They are then packaged into mortgage-backed securities (MBS), which sell on the secondary market. An MBS is quite akin to a bond that is comprised of an array of purchased home loans from banks, also receiving payments reflective of bond coupons.

Non-conforming “jumbo loans” include any lending above the conforming limit; these loans are geared toward high-income earners who have good credit and productive assets. Lenders will characteristically assume a more significant risk with these mortgages by virtue of the loan size and lack of government insurance.

The appeal of a non-conforming loan is very clear cut. Although these types of loans are substantially riskier and less prevalent, they allow you to borrow more sizeable amounts, not feasible with their counterpart conforming loans. Typically, to diminish any hazard, lenders demand a significant down payment or require mortgage payments in an asset account for added security. The risk to the lender is offset through generally higher interest rates, more sizable upfront fees, and stricter underwriting requirements.

From the sale of mortgages, financial institutions use the profit of sales to invest in offering new loans at the current interest rate. But Fannie Mae and Freddie Mac are restricted from purchasing indiscriminate mortgage products. Their federal rules conform to loans synonymous with protection and security. They are most advantageous to banks, as they are sales that are deemed less complicated and conclusively more appealing to borrowers.

Our expert team at Northwood Mortgage has many more answers to simple or more intricate mortgage questions, and we look forward to connecting with you. As one of the most venerated brokerages in the GTA, our team exemplifies prized services and choice products to our clients, lenders, and investors alike.

We invite you to visit us for more insight at Northwood Mortgage.com or talk to us one-on-one for a more personal assessment, fitting your needs, at 1-888-495-4825.

source: northwoodmortgage.com

Credit counseling Will Help You Improve Your Finances, This Is Why

Credit counseling is one of the most recommended debt solutions in America, especially for debtors filing for Chapter 13 bankruptcy. Before visiting a credit counseling agency, you ought to know if credit counseling works. This post answers the questions, “does credit counseling work?” What are the benefits of visiting a credit counselor? Is It Right for me?

Like general psychotherapy, there are a lot of criticisms on Credit Counseling. Some critics accuse debt counseling agencies of predatory practices, which is defined as “imposing unfair and abusive loan terms on borrowers”.

According to a 2006 audit report from the office of inspector general (IG) of the Federal Deposit Insurance Corporation (FDIC).

These predatory practices include; charging exorbitant fees, failing to meet expected standards, inability to proffer practical solutions for debtors, and deceiving clients.

Every field has its own bad eggs, and credit consulting is not an exception.

However, the red flags should not deter you from seeing the benefits of credit counseling, a field that was created with the purpose of helping debtors get rid of credit card debt.

What Are the Benefits of Visiting a Credit Counselor?

There are four major functions of a debt counselor, namely; debt management, budgeting, education, and tools application.

To paint the full picture of what each function entails, I’ve provided a bulleted list of mini-functions under each head-function.

Debt Management Benefits

* Evaluates the client’s total financial case by reviewing monthly wages, properties, credit card debts, expenses, credit reports, or other financial information.

* Develop debt management plans (DMP’s) and budgets to help clients meet their monetary goals.

* Drafts debt repayment dates in favor of clients.

* Recommend methods, such as adjusting budgets, applying for debt management plans, using personal loans, or declaring bankruptcy.

* Speaks to clients by telephone or physically to garner more financial data.

* Prepare documents to solidify legal contracts after getting a go-ahead from the client and creditor agency.

* Update records of the client’s account activity, like correspondence, financial transactions, or counseling session notes.

* Direct clients to community services or resources in cases beyond credit counseling.

* Evaluate the duration for Credit card debt repayment using the volume of debt, interest rates, income, and savings.

* Negotiate with creditors agency on behalf of clients to help adjust payments, reduce interest rates, extend payment duration, or devise a better DMP.

Budgeting Your Money to Pay Off Debt

* Evaluate the financial capacity or status of clients.

* Devise actionable methods to help clients pay their credit card debt, obtain permanent housing or mortgage programs.

* Creates monetary plans for clients while making debt repayment a priority



Financial Education to Avoid Getting in Debt

* Informs clients on financial issues, such as consumer protection laws, credit report ratings, wage attachments, bankruptcy laws, or collection actions.

* Recommends way forwards on housing issues, like mortgage delinquency, housing rental, and homeownership.

* When it comes to financial planning, credit or budgeting, debt counselors recommend educational materials for clients.


* Explain federal policies to clients, such as the DMP rules, the pros, and cons of enrolling in debt repayment plans, or lender concession policies.

Tools and Apps To keep You Debt Free

* Studies financial records for missing cheques, payment history, returned cheques, held money, or other similar cases to resolve client’s issues.

* Releases funds to creditors on behalf of clients.


* Oversees the foreclosure, repossessions, or removal of levies.

Best Credit Counseling Agencies in America

Credit counseling is a legit practice in America. Credit counseling society is dominated by non-profit organizations and Christian/religious entities.

The idea of credit counseling was spearheaded by lenders and credit agencies during the mid-’60s in a bid to curb the continuous outbreak of personal bankruptcies.

Even though there’s a difference from nation to nation or within a nation, consumer debt is basically made up of credit card debt, car loans, and home loans.

Credit counseling aka debt counseling deals with consumer debt, which isn’t in the client’s capacity to pay.

Aside from educating the client and creating a proper budget that suits the client’s income, credit counselors assist debtors in devising a debt management plan aka DMP.

In the United Kingdom, DMP is also known as IVA, an Individual voluntary arrangement.

For a DMP to be effective, the client has to give the credit counselor the mandate to negotiate with the creditor(s) on the behalf of the debtor.

How Much Will You Save? Check If You Qualify In Two Simple Steps

* Step 1 – Select your debt amount below to see if you’re eligible


* Step 2 –Answer a few quick questions & join hundreds of thousands of Americans on the path to becoming debt-free

The aim of negotiation is to reduce the interest rate, extend payment date, lower monthly minimum payment, and waive outstanding late charges.

After the agreement has been made, the debt would be consolidated into a single payment, depending on the case at hand.

Not all debt cases demand a DMP or IVA, some debt counselors would go as far as negotiating debt relief or debt consolidation.

Does Credit Counseling Work: A Critic’s Perspective

Critics around the globe have criticized credit counseling, on the basis that the idea originated from credit agencies, who wanted to prevent debtors from seeking better alternatives.

Predatory practices include demanding unlawful or exorbitant fees, inability to meet the required standard, inability to proffer actionable solutions for clients, and neglecting the debtor’s interest in favor of the creditor.

Regulations Protecting Americans from Predatory Practices

The society of credit counselors is loosely regulated by the Federal Trade Commission (FTC) in America.

The FTC is the nation’s debtor’s protection agency, which can slam credit agencies with a lawsuit for deception, extortion, and offenses of any nature.

Though the federal government has created policies protecting debtors, individual states may also regulate DMPs.

The attorney general of the state has the power to protect citizens from predatory practices.

There are two major associations representing the interests of creditors, namely: the Association of Independent Consumer Credit Counseling Agencies and the National Foundation for Credit Counseling.

SUMMARY

Like I noted earlier, the major benefit of enrolling for credit counseling is guidance.

To get the most out of credit counseling, you ought to be attentive to every debt solution proffered by the credit counselors.

Then, you can decide to opt-in for DMPs, debt relief, debt forgiveness, or bankruptcy.

With respect to education, tool application, Student loan Debt, debt management, and budgeting, debt counseling works.

It is also important to know that the debt counselor is not a magician: he/she can only persuade creditors to reduce the interest rates or extend the payment date, but the final decision lies in the hands of your creditors.

Though, most creditors prefer DMPs to bankruptcies.

source: ussa.inquirer.net

Asian shares mixed as investors look ahead to rate decisions

TOKYO – Asian shares were mixed Tuesday after a day of listless trading on Wall Street, as investors awaited signs on global interest rates.

Japan’s benchmark Nikkei 225 added 0.2% to 21,360.15 in morning trading.

Australia’s S&P/ASX 200 fell 0.5% to 6,618.20, while South Korea’s Kospi inched up 0.1% to 2,021.73.

Hong Kong’s Hang Seng was up nearly 0.1% at 26,703.44, while the Shanghai Composite lost 0.4% to 3,012.03.

On Wall Street, the S&P 500 ended virtually flat as losses in technology and health care stocks outweighed gains in financials and other sectors. The Russell 2000 index of smaller company stocks, which has lagged the S&P 500 this year, outpaced the rest of the market.

Investors are taking a shine to smaller company stocks in hopes that they’ll be better shielded from the fallout of the costly trade war between the U.S. and China than large multinationals.


The S&P 500 inched 0.28 points lower, or less than 0.1%, to 2,978.43. The index, which has finished higher the past two weeks, is within 1.6% of its all-time high set in late July. The Dow Jones Industrial Average rose 38.05 points, or 0.1%, to 26,835.51. The Nasdaq fell 15.64 points, or 0.2%, to 8,087.44. The Russell 2000 climbed 19.06 points, or 1.3%, to 1,524.23.

The broader market has bounced back the past two weeks following volatility brought on by the trade war as Washington and Beijing imposed new tariffs on more of each other’s imported goods. Investors worry the escalation of tariffs may be dampening global economic growth and threatening to nudge the United States into a recession.

Traders are hoping for a deal between the world’s two largest economies and were encouraged last week by news that talks will resume in October.

A mixed bag of economic data has also kept Wall Street focused on central banks and whether they will continue taking measures to shore up economic growth. On Friday, Federal Reserve Chairman Jerome Powell said the central bank doesn’t expect a recession and will take necessary actions to maintain growth.

Economists expect the Fed to cut interest rates when it meets next week.


Separately, the European Central Bank is expected to unveil new monetary stimulus measures on Thursday to help shore up the region’s economy.

“Markets look to be adrift ahead of the slew of events this week including the likes of the European Central Bank where further support for the markets is expected,” said Jingyi Pan, market strategist at IG in Singapore.

“As far as the risk sentiment is concerned, the improvement carries forth from the previous week in anticipation of the various central bank meetings.”

ENERGY:

Benchmark crude oil rose 42 cents to $58.27 a barrel. It rose $1.33 to $57.85 a barrel Monday. Brent crude oil, the international standard, gained 46 cents to $63.05 a barrel.

CURRENCIES:

The dollar rose to 107.39 Japanese yen from 106.96 yen on Monday. The euro strengthened to $1.1046 from $1.1037. /gsg

source: business.inquirer.net

Asian shares tumble as US-China trade war renews uncertainty

TOKYO – Asian shares tumbled Monday after the latest escalation in the U.S.-China trade war renewed uncertainties about global economies, as well as questions over what President Donald Trump might say next.

Japan’s benchmark Nikkei 225 started plummeting as soon as trading began and stood at 20,234.87 in the morning session, down 2.3%.

Australia’s S&P/ASX 200 slipped 1.5% to 6,427.20. South Korea’s Kospi lost 1.7% to 1,916.14.

Hong Kong’s Hang Seng dropped 3.3% to 25,309.37, while the Shanghai Composite was down 1.2% at 2,862.87.


Stephen Innes, managing partner at Valour Markets in Singapore, compared the difficulty of assessing the volatile market situation to reading tea leaves.

“Nobody understands where the president is coming from,” he said, adding that the best thing Trump can do for market stability is to “keep quiet.”


“The problem that we’re faced right now is that we are making a lot of assumptions ahead of the economic realities.”

The market is now dominated by fears of a portending U.S. recession, although the American economy is actually holding up, and much of the U.S. economy is made up of consumption, Innes said. If interest rates come down, he added, consumer spending is likely to go up, working as a buffer for the economy.

“What the market’s really waiting for is for them to drop interest rates,” Innes said. “Right now, we are still sitting on that uncertainty.”

The Dow Jones Industrial Average plunged more than 600 points Friday after the latest escalation in the trade war between the U.S. and China rattled investors. The broad sell-off sent the S&P 500 to its fourth straight weekly loss.

The tumbling began after Trump responded angrily on Twitter following China’s announcement of new tariffs on $75 billion in U.S. goods. In one of his tweets he “hereby ordered” U.S. companies with operations in China to consider moving them to other countries — including the U.S.


Trump also said he’d respond directly to the tariffs — and after the market closed he delivered, announcing that the U.S. would increase existing tariffs on $250 billion in Chinese goods to 30% from 25%, and that new tariffs on another $300 billion of imports would be 15% instead of 10%. Those announcements are likely to influence stock markets in Asia when trading opens there Monday.

The ongoing trade dispute between Washington and Beijing, and especially its unpredictability, is certain to have damaging effects on Asia. The unpredictability affects the real decisions central banks make on fiscal policy and companies make on their strategies and investments, setting off ripples of uncertainty.

Zhu Huani of Mizuho Bank in Singapore said what he called Trump’s “tariff tantrum” was setting off “the sense that tariffs could continue to rise,” with the “the unpredictability of timing and extent of these trade actions risk accentuating the paralysis of business decisions and big-ticket business spending.”

The S&P 500 fell 75.84 points, or 2.6%, to 2,847.11. The index is now down 4.5% for the month. It’s still up 13.6% for the year. The Dow lost 623.34 points, or 2.4%, to 25,628.90. The average briefly dropped 745 points. The Dow has had five declines of 2% or more this year, with three of them coming this month. The Nasdaq gave up 239.62 points, or 3%, to 7,751.77. The Russell 2000 index of smaller company stocks skidded 46.52 points, or 3.1%, to 1,459.49.

Trump also said Friday morning that he was “ordering” UPS, Federal Express and Amazon to block any deliveries from China of the powerful opioid drug fentanyl. The stocks of all three companies fell as traders tried to assess the possible implications.

The price of benchmark crude fell 71 cents to $53.46 a barrel. It sank $1.18, or 2.1% to settle at $54.17 a barrel Friday, as traders worried that the latest escalation in the trade battle could sap global demand for energy. Brent crude oil, the international standard, fell 63 cents to $58.71 a barrel.

The dollar fell to 105.24 Japanese yen from 106.65 yen Friday. The euro strengthened to $1.1145 from $1.1057. /gsg

source: business.inquirer.net

Fear on Wall Street of an Economic Slowdown

U.S. stocks fell broadly in midday trading Wednesday as central banks around the world cut interest rates and increased fears that global growth is being crimped by the U.S.-China trade war.

Every major U.S. index fell and put stocks back on a course for losses after briefly breaking a six-day losing streak on Tuesday. The losses eased as the day progressed, though investors remained in a defensive mode and headed for relatively safe holdings.

Bond prices spiked again, sending the yield on the 10-year Treasury down to 1.64% from 1.74% late Tuesday, a large move.

Yields are at their lowest level in nearly three years. That benchmark yield has retreated from its recent high of 3.23% last November as expectations of economic growth have steadily faded.


“The Treasury market is trading much higher this morning as investors continue to seek a safer haven, completely unsure as to what may happen next,” Kevin Giddis, head of fixed income capital markets at Raymond James wrote in a report.

Banks sustained some of the worst losses. Lower bond yields mean lower interest rates on mortgages and other kinds of loans, which mean lower profits for banks. JPMorgan Chase fell 3.1% and Bank of America fell 3.3%.

The dimming expectations for global growth also send the price of crude oil sharply lower. Benchmark U.S. crude plunged 4.5% at $51.20 a barrel. That helped pull energy sector stocks lower. Occidental Petroleum gave up 3.3%.

Big technology stocks, longtime investor favorites, also posted hefty losses. IBM lost 1.8%.

Safe-play stocks, including consumer staples and utilities, held up far better than the rest of the market.

The S&P 500 index fell 0.5% as of 11:12 a.m. Eastern time. The Dow Jones Industrial Average fell 238 points, or 0.9%, to 25,790. It was down as much as 589 earlier.

The Nasdaq fell 0.1%

China on Monday allowed its currency, the yuan, to weaken against the U.S. dollar in response to U.S. threats to add more tariffs to Chinese goods.

China stabilized the yuan on Tuesday and that helped lift U.S. stocks a day after they endured their worst day of the year. The volatile trading has already put a dent in the major indexes yearly gains. The S&P 500 is down 3.8% for August.

Central banks in New Zealand, India, and Thailand cut key interest rates on Wednesday and investors around the world fear that the escalating trade war between the U.S. and China will severely damage global growth.

After the surprise interest-rate cuts, bond yields sank around the world as investors scrambled for safety. They also poured into gold, which jumped to its highest price in more than six years.

“There is almost a paranoia amongst central bankers to avoid any potential financial hiccups that might hurt the real economy and cause a slowdown,” Jefferies strategist Sean Darby wrote in a report.

U.S. stocks have been on a wild ride since Jan. 22, 2018, when Trump first imposed tariffs on solar products and washing machines to help U.S. manufacturers, but they’re virtually back to where they started.

The S&P 500 closed at 2,832.97 that day and has since been down as much as 17% and up as much as 7%, with moves often driven by waxing and waning worries about the trade war. On Wednesday morning, the S&P 500 sat at 2,862.45, up 1% from that early 2018 starting point.

Since Trump tweeted in March 2018 that “trade wars are good, and easy to win” after raising tariffs on steel and aluminum, the S&P 500 is up 6.3%, though that gain has nearly halved in the last couple weeks as worries about the trade war have surged.

A key gauge of fear in the marketplace surged 6.2%. The VIX index, which measures how much traders are paying to protect themselves from swings in the S&P 500, was still below where it was at the start of the year when recession fears were surging, but it’s close to its highest level of the year.

European and Asian indexes were mixed.

Disney fell 5.1% after disappointing investors with a sharp third-quarter profit plunge that fell far short of Wall Street forecasts.

The entertainment company said underperformance from its Fox movie and TV studio helped weigh down the fiscal third-quarter financial results. It bought Fox’s entertainment business in March for $71 billion.

Match Group shares jumped 25.2% after the operator of Tinder, OkCupid and other dating sights beat Wall Street’s second-quarter earnings forecasts. The company reported a surge in Tinder subscribers and raised its revenue forecast for the year.

Drugstore operator CVS Health rose 6% after swinging to a second-quarter profit and handily beating Wall Street forecasts. The company attributed part of the gains to health insurer Aetna, which it bought for $69 billion in November.

source: usa.inquirer.net

Capital One Data Breach

One of the country’s biggest credit card issuers, Capital One Financial, is the latest big business to be hit by a data breach, disclosing that roughly 100 million people had some personal information stolen by a hacker.

The alleged hacker, Paige A. Thompson, obtained Social Security and bank account numbers in some instances, as well as other information such as names, birthdates, credit scores, and self-reported income, the bank,  said Monday. It said no credit card account numbers or log-in credentials were compromised.

Capital One Financial is just the latest business to suffer a data breach. Only last week Equifax, the credit reporting company, announced a $700 million settlement over its own 2017 data breach that impacted half of the U.S. population. Other companies that have had breaches include the hotel chain Marriott, retail giants Home Depot and Target.

WHAT HAPPENED?

Thompson, 33, who uses the online handle “erratic,” allegedly obtained access to Capital One data stored on Amazon’s cloud computing platform Amazon Web Services in March. She downloaded the data and stored it on her own servers, according to the complaint.

Thompson was a systems engineer at Amazon Web Services between 2015 and 2016, about three years before the breach took place. The breach went unnoticed by Amazon and Capital One.

Thompson used the anonymous web browser Tor and a Virtual Private Network in extracting the data — typical methods hackers use to try to mask infiltrations — but she later boasted about the hack on Twitter and a chat group on Slack, posting screenshots as evidence of her exploit.

It was only after Thompson began bragging about her feat in a private group chat with other hackers that someone reached out to Capital One to let them know on July 17.

Once the informant told Capital One the company closed the vulnerability. The company verified its information had been stolen by July 19 and started tracking Thompson and working with the FBI. The FBI raided Thompson’s residence on Monday and seized digital devices.

An initial search turned up files that referenced Capital One and “other entities that may have been targets of attempted or actual network intrusions.”

WHAT DID THOMPSON TAKE?

The data breach involves about 100 million people in the U.S. and 6 million in Canada.

Prosecutors said a misconfigured Capital One firewall let Thompson access folders of data that Amazon Web Services was hosting for the bank. Thompson sent a command that returned a list of more than 700 folders and copied data from an unspecified number of them. Capital One said the bulk of the hacked data consisted of information supplied by consumers and small businesses who applied for credit cards between 2005 and early 2019. The hacker also was able to gain some access to fragments of transactional information from dates in 2016, 2017 and 2018.

The bank said it believes it is unlikely that the information obtained was used for fraud, but the investigation is ongoing.

Capital One says 140,000 individuals had their Social Security numbers accessed, and another 80,000 had their bank account information accessed.

HOW DID CAPITAL ONE HANDLE THE BREACH?

Capital One says once it learned of the breach on July 17, it immediately closed the vulnerability, and it was able to figure out what Thompson accessed 36 hours later, on July 19. The company was able to build a profile on Thompson from their internal investigation and handed that to the FBI, who arrested her 10 days later, the day the bank disclosed the breach.

By contrast, it took Equifax six weeks before it publicly disclose its security incident, which was similar in size.

What To Do If You Were Affected By Capital One Hack
Capital One said it will reach out to those affected using “a variety of channels.”

That bank said it will make free credit monitoring and identity protection available to everyone affected. The company also said that consumers can visit www.capitalone.com/facts2019 for more information. In Canada, information can be found at www.capitalone.ca/facts2019 .

Consumers should also obtain copies of their credit reports at AnnualCreditReport.com. By federal law, consumers can receive a free copy of their credit report every 12 months from each of the three big agencies — Equifax, Experian, and TransUnion.

Look over all of your listed accounts and loans to make sure that all of your personal information is correct and that you authorized the transaction. If you find something suspicious, contact the company that issued the account and the credit-rating agency.

You may also want to consider freezing your credit, which stops thieves from opening new credit cards or loans in your name. This can be done online. Consumers can freeze their credit for free because of a law that President Donald Trump signed last year. Before that, fees were typical $5 to $10 per rating agency.

You’ll need to remember to temporarily unfreeze your credit if you apply for a new credit card or loan. Also, keep in mind that a credit freeze won’t protect you from thieves who file a fraudulent tax return in your name or make charges against an existing account.

You should also change your passwords regularly. CreditCards.com industry analyst Ted Rossman recommends using a password aggregator like LastPass that helps create strong, unique passwords for all of your logins.

source: usa.inquirer.net

What Is Mortgage vs. Real Estate?

Real Estate is everything that mortgage needs, although Mortgage and Real estate relate to each other like peanut butter and jelly, In this article, I will give you a quick Mortgage101 and run down on how real estate transactions work.

What is Mortgage?

For the majority of people that buy real estate, the need for a mortgage in order to finance the cost of the property is essential for making real estate ownership a reality. If you have opted to buy a home, apartment, or other property you will probably need to take out a mortgage.

While a mortgage is usually considered to be a loan by many people, it is, in reality, a lien on the property. When the bank maintains a mortgage on a property, it means that the bank can reclaim ownership of the property if the buyer does not make loan payments on time.

A mortgage works in a similar fashion to a car loan. Taking out a mortgage means that the amount loaned out is secured by the property itself. Mortgages also have to be paid in monthly installments so that the principal and interest are covered.

Mortgage loans are typically calculated so that the principle and interest payments are spaced out over a set period of time. The terms are typically between 10 to 30 years for the average mortgage and last until the entire principal has been paid off.

 Ready For a Quick Quiz? 

A mortgage is typically the largest debt that any homeowner will ever have. Before applying for a mortgage, you should have a good idea of what is involved in the application process so that you can be sure that you will be approved. In addition, understanding the terms of a mortgage before you sign a contract is important so that you will know whether or not you can really afford it.

Qualifying for a Mortgage

If you want to be approved for a mortgage, there are a number of criteria that need to be met in order to qualify. The first important point is to make sure that your credit score is good to excellent. At a minimum, you need a credit score of 680 or better.

Some of the other factors that will help you to become qualified include:

* A front-end ratio of 28 percent
* A back-end ratio of 36 percent
* Being employed at the same job for at least two years
* Verification of your earnings and employment
* Thorough documentation of your financial situation
* An appraisal performed by a professional
* Private mortgage insurance (applies in some cases, especially when the amount of the down payment is low).

Mortgage Types

There are several different options when it comes to the type of loan that you want on your property. In addition, only certain types of loans are available to specific individuals. The three main types of mortgages are conventional loans, VA loans, and FHA loans.

Conventional Loans: Conventional loans are offered by private lenders, typically banks. You can not obtain a conventional mortgage from the government. In addition, these types of loans often have strict requirements that mean that you must have good credit. In addition, you must have cash available to cover the down payment, which can be up to 20 percent of the value of the mortgage in order to get approved.

FHA Loans: FHA loans are offered by the Federal Housing Administration. These loans are given out by the government. FHA loans are designed for individuals that can not afford to make a substantial down payment or have other credit issues.

VA Loans: VA loans are guaranteed by the U.S. Department of Veterans Affairs. These loans are only available to military personnel that incisively on duty or are veterans. There are also some qualifications that must be met in order to obtain these loans.

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Real Estate Debt

While mortgages can be helpful for obtaining homeownership, occasionally homeowners run into financial problems.

These problems can be caused by issues such as unsecured debt, credit card debt, loss of employment or other problems. If you have a mortgage, there are options for helping you to pay your mortgage while getting your debt problems under control.

Mortgage Refinancing

Mortgage interest rates have reached the lowest levels in some time. If you want to find some money for paying your other bills, refinancing your mortgage to a lower rate could help. It is important to understand that refinancing does come with fees and it may also extend the length of your mortgage.

Cash-out Refinancing

Cash-out refinancing is available to homeowners that have a significant amount of equity in the property.

After a cash-out refinance you will have cash that you can use to pay other debts. A pitfall of this method is that unsecured debts are now tied to your property and you have compromised the equity in your home.

Home Equity Loans

Home equity loans or second mortgages can be used to pay off other debts. You are eligible if you have equity in your property. You will receive a lump sum of money at a fixed-rate.

Real estate transactions encompass both the buying and selling of property. In order to perform such transactions, decisions must be made regarding the home’s value, the current status of the local real estate market and what terms for buying or selling would be best.

What is Real Estate?

Here Are Some Real Estate Types

Real estate comes in three main types which are resident, investment and residential. Residential real estate refers to the individual properties that are owned for residential purposes. It is the most common form of real estate in the United States.

Commercial real estate refers to properties that are used primarily for business purposes. Investment real estate refers to real estate that the owner buys in order to earn income. The investor is not looking to live or use the property personally. Rather, the property is leased out to another individual, which can help generate income for the property owner.

Real Estate Benefits and Drawbacks

Since real estate transactions are taking place in an ever-changing market, there are some risks associated with owning real estate. These risks include:

* The potential for a decline in property values due to changing market conditions
* Potential liability for any problems that occur on the property
* Risk of going into debt due to mortgages

Although these drawbacks are significant, this has not stopped people from investing in real estate. When things do go well, owning real estate can result in significant financial rewards. Some of the benefits of owning real estate include:

* Short term profits realized upon selling the real estate in a market upswing
* The potential to take out additional loans for other needs while using the owned real estate property as collateral
* The diversification of an investment portfolio

source: usa.inquirer.net

Is Your Debt ‘Good’ or ‘Bad’?

Are student loans good debt that can open the door to a career or an insurmountable burden? Is all credit card debt a sign of reckless spending, or can it be a smart way to cover an expense? In general, no form of debt is inherently “good” or “bad.” What makes it good or bad is how it fits into your overall financial picture.

Good debt is manageable within your budget and can help you achieve your goals. On the flip side, bad debt is unaffordable and can overwhelm your finances.

Ask yourself these questions to determine if you’re dealing with good or bad debt. Then see how you can manage it.

WHAT LED TO THE DEBT?

The reason you took on debt can help you determine whether it’s helpful or harmful.

“Any debt that is taken on because people don’t have any kind of choice means they are starting out in a place of disadvantage,” says Ida Rademacher, a vice president of nonprofit think tank Aspen Institute. “That can create a spiral that can prevent people from being resilient.”

Conversely, Rademacher says, “the more helpful forms of debt can help people to become more resilient.” Student loans, for example, may enable a career that offers a high salary, making you more financially sound.

Think about whether you incurred the debt:

TO ACHIEVE A LONG-TERM GOAL: Student loans and auto loans can fit into this category. These debts can help you move ahead in life, so long as you don’t take on too much.

OUT OF CONVENIENCE: These are debts you incur to make other aspects of your life easier, such as when you have a big one-time expense and don’t want to deplete your savings. They can be benign if they’re helping you manage your overall financial picture.

DUE TO AN EMERGENCY: Desperation debt can be dangerous. A need for cash in a hurry can leave you with limited options and result in high-interest costs.

BOTTOM LINE: Debt taken to achieve a goal or out of convenience can be useful as long as you have a plan for paying it off. To avoid desperation debt, build an emergency fund. A 2016 report from public policy think tank Urban Institute found that savings as small as $250 can help consumers avoid missed bills and even eviction.

IS YOUR DEBT AFFORDABLE?

Comparing your debt load with your gross income can be a helpful tool for seeing if it’s manageable or becoming too large to tackle on your own. Leaving aside mortgages and student loans, since they’re generally more manageable forms of debt, here are some guidelines to consider:

DEBT LOAD UP TO 15% OF INCOME: This amount is likely affordable but is worth addressing. If you’re carrying a moderate credit card balance, for example, paying it off can free up cash and save on interest.

DEBT LOAD FROM 16% TO 39% OF INCOME: Debts in this range get increasingly difficult to pay off. You may be able to make them more affordable by reducing interest or payments, such as with a balance transfer credit card or a personal loan. If you can’t qualify for one of those, you could explore a debt management plan with a nonprofit credit counselor.

DEBT LOAD OF 40% OR MORE OF INCOME: Debt loads this high can be insurmountable. Use the free consultations offered by many nonprofit credit counselors and bankruptcy attorneys to see if debt relief might be right for you.

BOTTOM LINE: Know how your debt compares with your income and use that perspective to understand which approach is the most logical.

HOW IS YOUR DEBT AFFECTING YOUR LIFE?

Think about how debt is impacting your life overall, says Thomas Nitzsche, media manager at nonprofit credit counseling agency Money Management International.

“If your debt is something that is hanging over your head and you’re worried about it constantly, that’s something you should address,” he says. Any debt that affects your mental health or significantly diminishes your quality of life is bad debt.

Nitzsche advises taking an honest look at your situation and making a plan to resolve debt through a payoff approach like debt snowball — focusing on your smallest debts first — or by seeking debt relief. “Realize how uncomfortable you are with your debt and that it’s in your power to make changes.”

BOTTOM LINE: Debt doesn’t have to rule your life. If you’re feeling overwhelmed, take the first steps to resolve your obligations.

source: usa.inquirer.net

Types of Home Loans

It is necessary for investors to understand that the business of real-estate might look transparent from a regular perspective with a robe of simplicity on. However, certain crucial aspects need to be investigated before investment in any property. Before you enter into a purchase agreement to buy your next home, it would be to your greatest advantage to locate the most valuable home loan program for you and your family. The complexities of each home loan type might overpower, yet with a little research and exhortation from a proficient credit officer you ought to almost certainly discover a home loan program that will give you and your money related circumstance the best advantages. Up front installment, financing cost, credit term, and private home loan protection all portray a home loan, however seeing how rules contrast from home loan program to program will enable you to locate the most worthwhile parts of each advance kind and the least demanding way to endorsement.

The following is a rundown of the four fundamental home loan types, they include: Regular,  Federal Housing Administration (FHA), Veterans Administration (VA), and the United States Department of Agriculture (USDA). As you filter through the rules of these home loan types, you will find that the up front installment, FICO rating, work history, co-endorser choices, and property condition prerequisites change extraordinarily.



Conventional Mortgage

These loans are backed by Fannie Mae or Freddie Mac who have set regulations and requirements for their procedures. The Fannie Mae mortgage-backed bond is linked to mortgage interest rates via Fannie Mae. The Freddie Mac mortgage-backed bond is linked to mortgage-backed bonds via Freddie Mac.

Mortgage programs that use conventional mortgage interest rates include the "standard" 30-year fixed-rate mortgage rate for borrowers who make a 20% downpayment or more; the HARP loan for underwater borrowers; the Fannie Mae HomePath mortgage for buyers of foreclosed properties; and, the equity-replacing Delayed Financing loan for buyers who pay cash for a home.


Federal Housing Administration (FHA)

The FHA home loans have been helping many borrowers seeking a low down payment mortgage program, and also for those that need a bad credit mortgage. FHA mortgages can help a 1st time home buyer or 2nd time home buyer. You're able to use the FHA loan as many times as you move to a new home.

FHA home loans are now being given to people with blemished credit. The Federal Housing Administration is a government agency that insures the loan you are applying for from private lenders. Anytime you are unable to pay, they will partly do so on your behalf. With the government securing the loan, it definitely gives lending company the assurance they need. For this reason, even with a bruised credit score, you can apply for this loan and use it to buy or construct your own home.


Veteran's Administration (VA)

VA loans require a Certificate of Eligibility that documents your past or current military service, it is exclusive to those who bravely served our country and are available to those who have served our country and offer a number of advantages.

Lenders with trained personnel that work with the VA home loan program can easily acquire this document. However, in some cases, the applicant must fill out a form or other form online or by mail to receive the document. You must also have a reasonably Good Credit record.


United States Department of Agriculture (USDA)

This loan type is a loan from the United States Department of Agriculture, this program is overseen by the Rural Housing Service (RHS). This loan is designed for borrowers with low income that live in rural areas that have trouble getting financial assistance from traditional lenders.

Best Mortgage Rates: Wells Fargo Home Loans

With unparalleled experience in the mortgage arena, The Wells Fargo home loan team is here to assist you with every step of the home purchasing process. Whether you are in the market for a new home or looking to refinance your home, the expert mortgage team at Wells Fargo will help you find a home loan that is suitable to your financial needs.

Purchasing a New Home

When starting the home buying process, you need to first decide what price range you can afford. A big part of the Wells Fargo mortgage rates are determined based on your income, debts, and other financial data. This can be determined by looking into your current financial situation which includes both your gross annual income and credit score. The team of experts  at Wells Fargo can help you find ways to increase your credit score. Often times there are items placed on a credit score that can easily be disputed and rectified, even during the purchase of a new home.

Home buyers also have the option to get prequalified on a home loan. This can give them an up-to-date estimation of what they can afford. This estimation is helpful when making your final home buying decision. A Wells Fargo mortgage rates expert will walk your through the prequalification process and answer any questions that you may have.

Wells Fargo Mortgage Rates

When it comes to home loans, there are several options available to home buyers.

Fixed-Rate Mortgage

A fixed-rate mortgage guarantees that monthly payments and interest rates will remain the same over the course of the loan’s life.
Adjustable-Rate Mortgage (ARM): This is when you have a lower initial interest rate than compared to fixed-rate. The rates and monthly interest rates are subject to change after the initial fixed-rate period.

Jumbo Loans

These are for customers who need financing for higher loan amounts. They provide financing above standard Fannie Mae and Freddie Mac loan amounts.

Your First Mortgage

This is meant for first-time or repeat home buyers who have limited cash available for a down payment. Keep in mind that Wells Fargo mortgage rates are dependent on your credit score.

Government Loan Options

Eligible customers have availability to loans such as FHA, VA, and the Guaranteed Rural Housing. They offer low down payments, down payment assistance programs, and provide options for home buyers with credit concerns. Wells Fargo mortgage rates can fluctuate because of different loan programs.

New Home Loans

The home buyers who purchase a newly constructed home receive:

“Builder Best” extended rate lock program
A dedicated team that is specialized in home financing for new home builds.

Cash Out Refinance

This is utilized for home owners who want to access available equity from their home.This will replace your existing mortgage with a new loan that’s larger than original loan balance. Also, when you close this type of loan, you will be able to access the money you borrowed to pay for any major purchases.

Home Equity Line of Credit

This is meant for the homeowners who want ongoing access to the available equity in their home. During the “draw period” you can borrow money as you need,  up to your available line of credit. Relationship discounts can be accessed and your interest rate may be lower than other unsecured forms of credit.

Closing on Homes

It is recommended that home buyers hire a home inspector to conduct a house inspection on the home they are considering to purchase. This includes not only items that can be seen in plain sight, but also the overall structural integrity of the home, inside and out.

Home buyers themselves are also encouraged to get involved in the inspection process. Look around for any major repairs in walls, flooring, the foundation, and any other areas that need to be addressed.
Closing on a house generally takes anywhere from 30-90 days.

What is Included in the Origination Cost?

This includes all charges that lenders and brokers included during the entire transaction. These include application fees, processing expenses, underwriting fees, as well as payments to the lender.

What is Included in the Closing Costs?

Your down payment, prepaid property tax costs, and insurance escrow amounts are all included in the closing cost.

Calculate!

Wells Fargo mortgage rates offers several home lending online calculators in order to determine how much house you can afford. These tools allow you to see the different loan options and show you how committing to a larger down payment can help save you money and time. This last task can be completed by using an amortization calculator.

Refinancing

Refinancing is a great option for homeowners that want to lower their monthly payment. For example, if you are paying a certain amount for a twenty year loan, the Wells Fargo mortgage rate advisor could work with you to lower your down payment by extending the loan out over more time. Our team of experts are ready to help you achieve your refinance goals! Refinancing can allow you to take money from your home equity and place it towards other expenses. Many homeowners will choose this option to fund home improvements or a potential remodel.

Rent vs. Buy

This decision is ultimately left up to the individual. However, looking into several factors associated with this process can help a potential home buyer make a better purchase decision. Gross annual Income, tax credits, credit scoring, down payment amounts, and the size of the home are all variables taken into consideration when determining whether you should rent or buy a property.

Wells Fargo mortgage advisors are qualified and eager to work with home buyers. The team of experts will help you with the entire process, from the initial online applications to closing day. We want to make your home purchasing goals come to life. Come by any Wells Fargo branch or search for a local Wells Fargo mortgage consultant today!

source: usa.inquirer.net

Chances to Get a Second Mortgage with Bad Credit

If you need funds quickly, but don’t have cash in the bank and can’t get a loan, borrowing on your property is a good next option.

In fact, getting a second mortgage in Toronto is usually cheaper than a loan because you are using equity in your home as security for the borrower.

Second Mortgage in Toronto

However, there are certain steps you can take to improve your chances of getting a second mortgage. If you have applied for a loan and been refused, you’ll know the reason why—and it’s most likely bad credit history.

First, use one of the three main online credit bureaus to find out what your credit score is. By checking out your credit rating, you should be able to pinpoint the problem and possibly fix it. For example, if you are weighed down with credit card debt, find a way of paying it off. Or, at the very least, increase your monthly repayments.

How to Take Out a Second Mortgage

Now, let’s take a look at the options. The first one is to take out a second mortgage, using the equity in your house as security against the second loan. If your bank or current mortgage lender won’t give you a second mortgage, then shop around. The best place to start is with a decent mortgage broker, who will have access to many different sources of funding, including online banks and financial firms.

When it comes to a second mortgage, 99 percent of the time you will pay a higher interest rate than the rate on your first (primary) mortgage. Your repayments will likely be higher, too. Don’t just take the first mortgage on offer. If the terms don’t work for you, such as a high interest rate or high payments, then ask the broker to seek out alternatives. You need to find a second mortgage that works for you and within your budget.

Finally, with this first option, you will likely be in the position of making two mortgage payments a month. That can stretch your finances and make covering your monthly expenses challenging.

Cash-Out Refinance Loan

The second option is to consider a cash-out refinance loan. This option is a new mortgage loan that replaces your current mortgage and, in addition, gives you the sum in cash that you want to borrow. The interest rate is going to be higher, and your monthly payments will be higher too. That means you have to think through this option carefully. If you suddenly lost your job, how would you make the second mortgage payments, as well as your day-to-day living costs?

If, after exploring every option for a second mortgage, you can’t find a lender, think about asking someone to co-sign your loan. This means that the co-signer will be responsible for the debt if you fail to make your payments.

Get the Facts Before You Borrow

Despite everything we’ve said above, you may find that the interest rates on the second loan are in fact lower, depending on the current interests rates and the economy.

Whatever you decide to do, check out the overall costs, conditions, and terms. And if something is confusing or doesn’t make sense, be sure to ask questions. At Northwood Mortgage, we will help you find that second mortgage in Toronto—even if you do have a bad credit rating.

source: northwoodmortgage.com

Things You Should Know Before Going for a Second Mortgage in Toronto

If you own a home in Canada then you have probably have heard of a second mortgage at some point in your life. A second mortgage is similar to a first mortgage, in that it is a loan secured by your property. As time passes you will accumulate more and more equity on your property. A second mortgage is primarily intended to use the equity that you’ve accumulated over the years.

According to a report by Business Insider, almost 2 million Canadians have a second mortgage, and nearly as many that have a HELOC. Some Canadians will use their second mortgage in order to avoid having to declare bankruptcy. In any event, a HELOC, for those unaware, is also another form of a second mortgage, because it serves as a line of credit for home equity. In other words, the person will supplement a second loan over their first in order to access their equity. Below are some things that you should know before going for a second mortgage in Toronto.

Different Types of Second Mortgages

A revolving HELOC works similarly to a credit card. That is, the borrower will have access to equity in perpetuity as they continue to pay off the principal (what they owed previously) over the upcoming months and years. Moreover, a HELOC can be modified to become a closed second mortgage, which functions much like a loan for a vehicle. That is, the borrower will receive only one lump sum of money from their equity and they must pay it off in a gradual manner.

It should also be noted that it is difficult to qualify for a HELOC of any kind, because they tend to only be offered to those with an impeccable credit profile and who happen to live in a prosperous urban area. Hence, those who have a poor credit profile or have a meager income will only likely have one option at their disposal—a private mortgage.

The Two Main Reasons Why Second Mortgages are Used

The most popular reason why a second mortgage is used is to pay off a consumer debt that has high interest. Many homeowners will also use a second mortgage in order to upgrade their home for resale or to renovate it for their own recreational purposes. Leveraging a second mortgage is highly recommended at the moment because credit card interest rates are presently 15%. As such, you can save a large sum of money by opting for a second mortgage.

For instance, let us imagine that you owe $30,000 on your credit card. In such a scenario you would have to pay roughly $600 in minimum payments every month; This is of course assuming that a 3% minimum payment is required. Now, if your interest rate was 15% APR then you would owe $4,500 in interest charges after just one year has elapsed. This is before you even get to the principal amount that is owed. As can be seen, interest charges can make or break first time homeowners who aren’t too careful with their fiancees.

Due to the aforementioned problems, many Canadians turn to a second mortgage in order to pay off their credit card debts. The end result is that their interest rates will be reduced because their second mortgage is secured by their home, which serves as the primary asset in this case.

Remember that Your Home Will Be Used as Collateral

If you have decided to take out a second mortgage on your home you must remember that your home will actually be used as collateral to secure the loan. As a result, if you fail to pay it off then the lender can foreclose on your property the same way they could with your first mortgage. However, the tradeoff is in the significantly lower interest rates that you will be charged, as your home will serve as an asset that will back your loan.

Take Advantage of Interest Only Payments

It is possible to only make interest payments with many of the second mortgage products that various lenders offer their clients; this will allow you to have easier and more affordable access to your home before you opt to sell your house to the highest bidder. Your monthly payments will also be significantly lower.

To further illustrate, if you were interested in renovating your home before resale or are interested in renegotiating your first mortgage, then you could remodel your home using the funds procured from the second mortgage. You could also have the option to pay off the interest charges. Then after you are done giving your home a makeover you could then resell it at a higher price and then use some of the money that you’ve made to pay off your second mortgage.

Avoid Private Mortgage Insurance

When a person applies for a standard mortgage in Canada they need to acquire private mortgage insurance if they are unable to put a minimum 20% down payment on their house. The end result is that they will have to pay fees, known as Canadian Mortgage and Housing Corporation fees, which can actually be quite exorbitant.

For instance, if you were to take out a half a million dollar mortgage with a 5% down payment then you would have to pay 4% worth of Canadian Mortgage and Housing Corporation fees. In other words, you would need to pay almost $20,000 in fees because you weren’t able to make the minimum 20% down payment.

The good news is you can take out a second mortgage in order to avoid private mortgage insurance. Of course this also means that you will have to add additional expenses to your monthly budget but it can still be a more affordable alternative to having to pay private mortgage insurance fees.

If you would like to learn more about obtaining a second mortgage in Toronto, please visit our website or call us at 1-888-495-4825.

source: northwoodmortgage.com