Fixed payment http://fimendurance.com/ Tue, 17 May 2022 06:21:53 +0000 en-US hourly 1 https://wordpress.org/?v=5.9 https://fimendurance.com/wp-content/uploads/2021/10/icon-5-120x120.png Fixed payment http://fimendurance.com/ 32 32 Personal loan rates drop slightly for 3-year fixed rate loans https://fimendurance.com/personal-loan-rates-drop-slightly-for-3-year-fixed-rate-loans/ Mon, 16 May 2022 18:04:30 +0000 https://fimendurance.com/personal-loan-rates-drop-slightly-for-3-year-fixed-rate-loans/ Our goal at Credible Operations, Inc., NMLS Number 1681276, hereafter referred to as “Credible”, is to give you the tools and confidence you need to improve your finances. Although we promote the products of our partner lenders who pay us for our services, all opinions are our own. The latest personal loan interest rate trends […]]]>

Our goal at Credible Operations, Inc., NMLS Number 1681276, hereafter referred to as “Credible”, is to give you the tools and confidence you need to improve your finances. Although we promote the products of our partner lenders who pay us for our services, all opinions are our own.

The latest personal loan interest rate trends from Credible Marketplace, updated weekly. (iStock)

Borrowers with a good credit application personal loans in the last seven days prequalified for lower rates for 3 years and higher for fixed rates of 5 years than the previous seven days.

For borrowers with credit scores of 720 or higher who used the Credible Marketplace to select a lender between May 9 and May 15:

  • Rates on 3-year fixed-rate loans averaged 10.98%, down from 11.10% seven days ago and 11.52% a year ago.
  • Rates on 5-year fixed rate loans averaged 13.02%, down from 12.83% the previous seven days and from 13.10% a year ago.

Personal loans have become a popular means of consolidate and pay off credit card debt and other loans. They can also be used to cover unexpected expenses like medical billstake care of a major purchase or finance home improvement projects.

3-year fixed personal loan rates have fallen over the past seven days, while 5-year loan rates have risen. Rates for 3-year terms decreased by 0.12% and rates for 5-year terms increased by 0.19%. Despite the rise in 5-year variable rate loans, rates for this term are below their April highs. Borrowers can enjoy interest savings with a 3 or 5 year personal loan now.

Whether a personal loan is right for you often depends on several factors, including the rate you may qualify for. Comparing several lenders and their rates could help you get the best possible personal loan for your needs.

It’s always a good idea to comparison store on sites like Credible to understand how much you qualify for and choose the best option for you.

Here are the latest personal loan interest rate trends from the Credible Marketplace, updated monthly.

Personal Loan Weekly Rate Trends

The table above shows the average prequalified rates for borrowers with credit scores of 720 or higher who used the Credible Marketplace to select a lender.

For the month of April 2022:

  • 3-year personal loan rates averaged 10.69%, down from 10.36% in March.
  • 5-year personal loan rates averaged 13.36%, down from 12.73% in March.

Personal loan rates vary widely depending on credit rating and length of loan. If you’re curious about what kind of personal loan rates you might qualify for, you can use an online tool like Credible to compare the options of different private lenders. Checking your rates will not affect your credit score.

All Credible Marketplace lenders offer fixed rate loans at competitive rates. Since lenders use different methods to assess borrowers, it’s a good idea to ask for personal loan rates from multiple lenders so you can compare your options.

Current personal loan rates by credit score

In April, the average prequalified rate retained by borrowers was:

  • 8.42% for borrowers with credit scores of 780 or higher choosing a 3-year loan
  • 29.46% for borrowers with credit scores below 600 choosing a 5-year loan

Depending on factors such as your credit score, the type of personal loan you are looking for, and the repayment term of the loan, the interest rate may differ.

As the chart above shows, a good credit rating can mean a lower interest rate, and rates tend to be higher on loans with fixed interest rates and longer repayment terms.

How to get a lower interest rate

Many factors influence the interest rate a lender can offer you for a personal loan. But there are steps you can take to increase your chances of getting a lower interest rate. Here are some tactics to try.

Increase credit score

Generally, people with higher credit scores qualify for lower interest rates. Steps that can help you improve your credit score over time include:

  • Pay your bills on time. Payment history is the most important factor in your credit score. Pay all your bills on time for the amount owed.
  • Check your credit report. Check your credit file to make sure there are no errors. If you find any errors, dispute them with the credit bureau.
  • Reduce your credit utilization rate. Paying off credit card debt can improve this important credit score factor.
  • Avoid opening new credit accounts. Apply for and open only the credit accounts you really need. Too many serious inquiries on your credit report in a short time could lower your credit score.

Choose a shorter loan term

Personal loan repayment terms can vary from one to several years. Typically, shorter terms come with lower interest rates because the lender’s money is at risk for a shorter period.

If your financial situation allows it, applying for a shorter term could help you get a lower interest rate. Keep in mind that the shorter term doesn’t just benefit the lender: by choosing a shorter repayment term, you’ll pay less interest over the life of the loan.

Get a co-signer

You may be familiar with the concept of a co-signer if you have student loans. If your credit isn’t good enough to qualify for the best personal loan interest rates, find a co-signer with good credit could help you get a lower interest rate.

Remember that if you are unable to repay the loan, your co-signer will have to repay it. And co-signing a loan could also affect their credit score.

Compare rates from different lenders

Before applying for a personal loan, it’s a good idea to shop around and compare offers from several different lenders to get the lowest rates. Online lenders generally offer the most competitive rates and can be quicker to disburse your loan than a physical establishment.

But don’t worry, comparing rates and terms doesn’t have to be a tedious process.

Credible is easy. Simply enter the amount you wish to borrow and you can compare multiple lenders to choose the one that suits you best.

About Credible

Credible is a multi-lender marketplace that allows consumers to discover the financial products best suited to their particular situation. Credible’s integrations with major lenders and credit bureaus allow consumers to quickly compare accurate and personalized loan options without putting their personal information at risk or affecting their credit score. The Credible Marketplace delivers an unparalleled customer experience, as evidenced by over 4,500 positive Trustpilot reviews and a TrustScore of 4.7/5.

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Delhi RWAs demand reduction in fixed costs on electricity bills and audit of discoms | Latest Delhi News https://fimendurance.com/delhi-rwas-demand-reduction-in-fixed-costs-on-electricity-bills-and-audit-of-discoms-latest-delhi-news/ Thu, 12 May 2022 18:05:07 +0000 https://fimendurance.com/delhi-rwas-demand-reduction-in-fixed-costs-on-electricity-bills-and-audit-of-discoms-latest-delhi-news/ The first day of a two-day public hearing by the Delhi Electricity Regulatory Commission (DERC), to decide the electricity tariff for the financial year 2022-23, saw the participation of at least 20 property associations on Thursday. -Being Residents (RWA), who unanimously urged the electricity regulator to get the Delhi government to start contributing at least […]]]>

The first day of a two-day public hearing by the Delhi Electricity Regulatory Commission (DERC), to decide the electricity tariff for the financial year 2022-23, saw the participation of at least 20 property associations on Thursday. -Being Residents (RWA), who unanimously urged the electricity regulator to get the Delhi government to start contributing at least 50% of the pension surcharge which is currently levied on every monthly electricity bill.

Many, including those in wealthy settlements, have also said they will not opt ​​out of the electricity subsidy scheme, which Chief Minister Arvind Kejriwal made optional last week with the proposed change taking effect. October 1.

A pension surcharge of 7% is a fixed component on every electricity bill and the money thus collected from consumers is intended to pay the pensions of employees who have retired from the Delhi Vidyut Board (DVB), which was the only discom in Delhi before the privatization of the electricity sector.

On September 30 last year, the DERC kept all other rates on the electricity bill unchanged, except for the pension trust surcharge, which was increased from 5% to 7%. In 2020, it fell from 3.8% to 5%.

“Last year alone, the targeted amount to be collected through the pension surcharge was nearly 400 crores and it keeps going up every year. Full recovery of unpaid bills from DVB is urgently required given the huge pension liability imposed on consumers due to a tripartite agreement, to which the consumer was not even a party. The Delhi government was the guarantor for the pension payment,” said Saurabh Gandhi, general secretary of United Residents of Delhi (URD), a conglomerate of more than 1,000 small RWAs across Delhi.

“Additionally, various state governments are now adopting the LIC (Atal Pension Scheme) pension scheme for their employees. The Delhi government should support pension commitments, instead of forcing them on consumers as a pension supplement,” Gandhi said.

Delhi government spokespersons did not respond to requests for comment.

There were also those who objected to Kejriwal’s May 5 announcement when he said the electricity subsidy would become optional from October 1.

HT was the first to report on May 6 that the subsidy will not be automatically applied to every eligible electricity bill as is currently the case. On the contrary, it will be necessary to opt for it in order to benefit from the scheme.

“The optional electricity subsidy will further disenfranchise the rich. This Delhi government announcement is an emotional blackmail card. The money saved will then be distributed to cultivate targeted vote banks in the name of development. I will not step down as my money will be used against me to cultivate and strengthen the Aam Aadmi Party (AAP) vote bank. Rather, the process should be that if people do not call a dedicated number or submit a written request, the grant will continue,” said Save Our City campaign manager and Greater Kaialsh-1 RWA member Rajiv Kakria. .

BS Vohra, who heads the East Delhi RWA Joint Front, also said he and several other residents, including many from wealthy settlements in east Delhi, had decided not to opt out of the electricity subsidy.

Sanjay Gupta of Model Town RWA urged the DERC to allow auditing of discoms as well as the pension trust surcharge.

Discoms, for its part, said there had been no significant tariff hike in Delhi since 2014. In the years that followed, their power purchase costs rose by more than 300 percent, while the retail electricity tariff only increased by 91%. “Savings from AT&C losses have provided a cushion for Delhi discoms to ensure business continuity despite non-cost-reflective tariffs over the years. Due to non-cost reflective tariffs, Delhi’s discom revenue (regulatory assets) gap has reached a milestone of more than 50,000 crores to be reached 51,646 crore, as of March 31, 2020,” a discom official said.


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Fixed 10-year private student loan rates drop for third week in a row https://fimendurance.com/fixed-10-year-private-student-loan-rates-drop-for-third-week-in-a-row/ Wed, 11 May 2022 20:03:32 +0000 https://fimendurance.com/fixed-10-year-private-student-loan-rates-drop-for-third-week-in-a-row/ Our goal at Credible Operations, Inc., NMLS Number 1681276, hereafter referred to as “Credible”, is to give you the tools and confidence you need to improve your finances. Although we promote the products of our partner lenders, all opinions are our own. Credible Market’s latest private student loan interest rates, updated weekly. (Stock) Medium private […]]]>

Our goal at Credible Operations, Inc., NMLS Number 1681276, hereafter referred to as “Credible”, is to give you the tools and confidence you need to improve your finances. Although we promote the products of our partner lenders, all opinions are our own.

Credible Market’s latest private student loan interest rates, updated weekly. (Stock)

Medium private student loan rates for borrowers with credit scores of 720 or higher who used the Credible Marketplace to take out student loans fell for 10-year fixed rates and rose for 5-year variable rates during the week of May 2 2022:

  • 10-year fixed rate: 6.03%, compared to 6.06% the previous week, -0.03
  • 5-year variable rate: 5.23%, compared to 4.57% the previous week, +0.66

With Credible, you can compare private student loan rates from multiple lenders without affecting your credit score.

After dropping significantly last week, 5-year variable private student loan rates are back on the rise. Meanwhile, 10-year fixed private student loans are down for the third week in a row. Despite the increases, rates for both quarters are below their April highs. Borrowers can take advantage of interest savings now with a 5-year variable rate loan or a 10-year fixed rate loan.

You should always exhaust federal student loan options before turning to private student loans to cover any funding shortfalls. Private lenders such as banks, credit unions, and online lenders offer private student loans. You can use private loans to pay for education and living expenses, which may not be covered by your federal student loans.

Private student loan interest rates and terms may vary depending on your financial situation, credit history and the lender you choose.

Take a look at the rates from Credible Partner Lenders for borrowers who used the Credible Marketplace to select a lender during the week of April 25:

Private student loan rates (diploma and undergraduate)

Student Loan Weekly Rate Trends

credible-student-prets-may-11.jpg

Who sets federal and private interest rates?

Congress sets interest rates for federal student loans each year. These fixed interest rates depend on the type of federal loan you take out, your dependent status, and your school year.

Private student loan interest rates can be fixed or variable and depend on your credit, repayment term and other factors. Generally, the better your credit score, the lower your interest rate is likely to be.

You can compare rates from multiple student lenders using Credible.

How does student loan interest work?

An interest rate is a percentage of the loan periodically added to your balance – essentially the cost of borrowing money. Interest is a way lenders make money from loans. Your monthly payment often pays interest first, with the rest going to the amount you originally borrowed (the principal).

Getting a low interest rate could help you save money over the life of the loan and pay off your debt faster.

What is a fixed rate or variable rate loan?

Here is the difference between a fixed and variable rate:

  • With a fixed rate, your monthly payment amount will remain the same for the duration of your loan.
  • With a floating rate, your payments can go up or down as interest rates change.

Comparative purchases for private student loan rates is easy when you use Credible.

Calculate your savings

Using a student loan interest calculator will help you estimate your monthly payments and the total amount you will owe over the term of your federal or private student loans.

Once you’ve entered your information, you’ll be able to see what your estimated monthly payment will be, the total you’ll pay in interest over the term of the loan, and the total amount you’ll repay.

About Credible

Credible is a multi-lender marketplace that allows consumers to discover the financial products best suited to their particular situation. Credible’s integrations with major lenders and credit bureaus allow consumers to quickly compare accurate and personalized loan options without putting their personal information at risk or affecting their credit score. The Credible Marketplace delivers an unparalleled customer experience, as evidenced by over 4,300 positive Trustpilot reviews and a TrustScore of 4.7/5.

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Private 10-year fixed student loan rates drop for third week in a row https://fimendurance.com/private-10-year-fixed-student-loan-rates-drop-for-third-week-in-a-row/ Wed, 11 May 2022 17:40:11 +0000 https://fimendurance.com/private-10-year-fixed-student-loan-rates-drop-for-third-week-in-a-row/ Our goal at Credible Operations, Inc., NMLS Number 1681276, hereafter referred to as “Credible”, is to give you the tools and confidence you need to improve your finances. Although we promote the products of our partner lenders who pay us for our services, all opinions are our own. Credible Market’s latest private student loan interest […]]]>

Our goal at Credible Operations, Inc., NMLS Number 1681276, hereafter referred to as “Credible”, is to give you the tools and confidence you need to improve your finances. Although we promote the products of our partner lenders who pay us for our services, all opinions are our own.

Credible Market’s latest private student loan interest rates, updated weekly. (iStock)

Medium private student loan rates for borrowers with credit scores of 720 or higher who used the Credible Marketplace to take out student loans fell for 10-year fixed rates and rose for 5-year variable rates during the week of May 2 2022:

  • 10-year fixed rate: 6.03%, compared to 6.06% the previous week, -0.03
  • 5-year variable rate: 5.23%, compared to 4.57% the previous week, +0.66

With Credible, you can compare private student loan rates from multiple lenders without affecting your credit score.

After dropping significantly last week, 5-year variable private student loan rates are back on the rise. Meanwhile, 10-year fixed private student loans are down for the third week in a row. Despite the increases, rates for both quarters are below their April highs. Borrowers can take advantage of interest savings now with a 5-year variable rate loan or a 10-year fixed rate loan.

You should always exhaust federal student loan options before turning to private student loans to cover any funding shortfalls. Private lenders such as banks, credit unions, and online lenders offer private student loans. You can use private loans to pay for education and living expenses, which may not be covered by your federal student loans.

Private student loan interest rates and terms may vary depending on your financial situation, credit history and the lender you choose.

Take a look at the rates from Credible Partner Lenders for borrowers who used the Credible Marketplace to select a lender during the week of April 25:

Private student loan rates (diploma and undergraduate)

Student Loan Weekly Rate Trends

Who sets federal and private interest rates?

Congress sets interest rates for federal student loans each year. These fixed interest rates depend on the type of federal loan you take out, your dependent status, and your school year.

Private student loan interest rates can be fixed or variable and depend on your credit, repayment term and other factors. Generally, the better your credit score, the lower your interest rate is likely to be.

You can compare rates from multiple student lenders using Credible.

How does student loan interest work?

An interest rate is a percentage of the loan periodically added to your balance – essentially the cost of borrowing money. Interest is a way lenders make money from loans. Your monthly payment often pays interest first, with the rest going to the amount you originally borrowed (the principal).

Getting a low interest rate could help you save money over the life of the loan and pay off your debt faster.

What is a fixed rate or variable rate loan?

Here is the difference between a fixed rate and a variable rate:

  • With a fixed rate, your monthly payment amount will remain the same for the life of your loan.
  • With a floating rate, your payments can go up or down as interest rates change.

Comparative purchases for private student loan rates is easy when you use Credible.

Calculate your savings

Using a student loan interest calculator will help you estimate your monthly payments and the total amount you will owe over the term of your federal or private student loans.

Once you’ve entered your information, you’ll be able to see what your estimated monthly payment will be, the total you’ll pay in interest over the term of the loan, and the total amount you’ll repay.

About Credible

Credible is a multi-lender marketplace that allows consumers to discover the financial products best suited to their particular situation. Credible’s integrations with major lenders and credit bureaus allow consumers to quickly compare accurate and personalized loan options without putting their personal information at risk or affecting their credit score. The Credible Marketplace delivers an unparalleled customer experience, as evidenced by over 4,300 positive Trustpilot reviews and a TrustScore of 4.7/5.

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Sunnova Adds Fixed Utilities Discount to Solar Project Payment Plan https://fimendurance.com/sunnova-adds-fixed-utilities-discount-to-solar-project-payment-plan/ Wed, 04 May 2022 11:39:06 +0000 https://fimendurance.com/sunnova-adds-fixed-utilities-discount-to-solar-project-payment-plan/ Sunnova Energy International will launch an energy plan that will provide new customers with a fixed percentage discount off prevailing utility prices and a 25-year market-based tariff, all to provide consumers with price confidence regardless of energy cost volatility. “For the first time, homeowners will be able to receive a fixed discount on their local […]]]>

Sunnova Energy International will launch an energy plan that will provide new customers with a fixed percentage discount off prevailing utility prices and a 25-year market-based tariff, all to provide consumers with price confidence regardless of energy cost volatility.

“For the first time, homeowners will be able to receive a fixed discount on their local utility electricity rates and charges for 25 years,” said Michael Grasso, senior vice president of marketing and growth at Sunnova. “When customers choose this new energy plan, Sunnova will set the solar power price with a fixed discount on the local utility price, and then each year we will confirm or adjust the customer’s price to reflect any changes. This is another great option from Sunnova that offers consumers the best and most flexible set of services for their individual energy needs. »

The market-based tariff will be a new solar tariff option under Sunnova’s Easy Plan Power Purchase Agreement (PPA). Traditionally, a customer’s rate is set in the contract and often increases every year, but Sunnova’s market-based solar rate will change with the market. Sunnova will monitor utility prices (which include taxes and other charges) and proactively adjust prices for its customers on an annual basis to the discount percentage rate targeted for that year.

Although the percentage discount varies by market and utility, Sunnova customers who choose this plan will receive the same percentage discount from their local utility prices during the term of the contract. The goal is to allow customers to generate solar power from their rooftops while paying a guaranteed price below utility charges while avoiding market volatility, the company said in a press release.

News from Sunnova

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Fixed or variable? How to Choose a Mortgage as Interest Rates Rise https://fimendurance.com/fixed-or-variable-how-to-choose-a-mortgage-as-interest-rates-rise/ Mon, 02 May 2022 21:05:02 +0000 https://fimendurance.com/fixed-or-variable-how-to-choose-a-mortgage-as-interest-rates-rise/ The Bank of Canada’s efforts to calm the housing market by raising interest rates is causing house hunters and homeowners to re-examine the type of mortgage they can take out. Global News spoke to mortgage experts and economists to help break down the factors consumers should consider when calculating monthly housing payment numbers in a […]]]>

The Bank of Canada’s efforts to calm the housing market by raising interest rates is causing house hunters and homeowners to re-examine the type of mortgage they can take out.

Global News spoke to mortgage experts and economists to help break down the factors consumers should consider when calculating monthly housing payment numbers in a rising interest rate environment.

First, find out about the different types of mortgages available to you.

A fixed rate mortgage offers homebuyers a stable interest rate for a fixed term, usually fixed in three to five year increments over the term of the mortgage.

These rates are not immediately affected by Bank of Canada interest rate movements – although expected increases may be built into the rate offered to you – and therefore offer a little more predictability in your monthly payments throughout long term.

A variable rate mortgage changes in response to interest rate decisions by the Bank of Canada, as financial institutions link their prime rates to the central bank’s benchmark rate. You will then get a discount on top of that.

For example, today’s variable rate mortgage contract could get you the prime rate of 3.2 per cent minus 0.6 per cent, according to Leah Zlatkin, mortgage broker and expert with lowerrates.ca.


Variable rates are “generally” lower than their fixed-rate counterparts, Zlatkin says.

To understand how these two types of rates might affect monthly payment strategies, the key factor is the “spread” between them.

Read more:

Major banks raise prime interest rate after Bank of Canada decision

Today, Zlatkin pegs the typical variable rate mortgage between 2.3% and 2.6%, while fixed rates hover around 3.89%. The difference is therefore approximately 1.6%.

This spread will tend to contract as the Bank of Canada raises interest rates. Prime rates offered by banks will increase, closing the gap between today’s fixed rate monies and future floating rate payments.

Bank of Canada Governor Tiff Macklem has made no secret that the institution will be “vigorous” with rate hikes in an effort to curb soaring inflation.

The central bank took a rare step of 50 basis points last month to raise its overnight rate to 1.0%. Some economists are predicting another half-percentage-point hike in the next rate announcement in June.

“Everyone has an opinion on where rates are going and no one really knows unless you’re at the Bank of Canada, in which case you’re probably not telling anyone,” Zlatkin says.


Desjardins said in a mortgage rate forecast last week that it expects the central bank to “raise the key rate quickly” over the coming year, but that it will be kept below 2.5%.

The Bank of Canada said last month it believed the “neutral rate” — the point at which interest rates neither fuel nor hinder the country’s economic growth — is between 2.0% and 3.0%. .0%.

If the central bank raised rates this high in the current cycle, variable rates would rise 100 to 200 basis points and mortgage holders with this type of loan would immediately set monthly payments to reflect the higher rates.

Jimmy Jean, chief economist at Desjardins, told Global News that the Bank of Canada’s plans to rapidly raise interest rates could end the popularity of variable-rate mortgages after years of low rates influenced by the pandemic economy.

“We have seen strong demand for variable rate mortgages. But the further we go, the more this gap will narrow. … It might make sense in this context to lock in (the) interest rates that we can get now,” he says.

Sung Lee, mortgage officer at RATESDOTCA, told Global News that in the short term, there is still a “compelling reason” to go for a variable mortgage today, even with more rate hikes on the horizon. . He points to the spread of about 150 basis points between most variable offers and the current fixed rate.

Read more:

Home prices could rise 15% in 2022 despite efforts to cool the market, says Royal LePage

Although she warns she doesn’t have a “crystal ball”, Zlatkin expects a 0.75% aggregate increase in the central bank’s overnight rate before the end of 2022. For this reason, she asserts that variable rates will remain the cheapest option in the long term. But she notes that the bottom line is not the top priority for the most risk-averse market watchers.

“If you’re the type of person who’s going to watch those Bank of Canada ads every time you have a heart attack, it’s not worth it,” she says. “Just pay a few hundred dollars more and go for a fixed rate.”

There’s another factor to consider with rising interest rates, and it could affect the price of the home you can afford.

The mortgage stress test allows potential buyers – as well as those looking to refinance an existing mortgage – to qualify for the loan at the higher of two rates: either the offered rate plus 2%, or the qualifying rate of 5 .25%.

While those who have sought pre-approval for a mortgage over the past few years may have grown accustomed to qualifying at the 5.25% mark, the current rate hike could mean 3% mortgages being taken. .5% or more.

With the extra 2%, these buyers are now considering qualifying for mortgages at 5.5% or higher. Zlatkin says a couple who might have qualified for a $500,000 mortgage three months ago might only be able to get around $473,000 today.

“Therefore, your budget for the new house has to change as well,” she says.


However, just because your buying power doesn’t extend that far in the current market doesn’t mean it’s not the time to buy.

Rising interest rates are already having a cooling effect on the Canadian housing market, Jean says, with sales starting to “moderate” in most markets and prices in provinces like Ontario and Quebec having potentially peaked.

Lee adds that with rates rising for the foreseeable future, your mortgage is unlikely to stretch much further in the months ahead.

“I don’t think rates are going to come down any further in the near term,” he said. “So if you can now get into something that fits your budget, I think that’s a great plan.”

© 2022 Global News, a division of Corus Entertainment Inc.

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Fixed or variable? How to Choose a Mortgage as Interest Rates Rise – National https://fimendurance.com/fixed-or-variable-how-to-choose-a-mortgage-as-interest-rates-rise-national/ Mon, 02 May 2022 20:38:25 +0000 https://fimendurance.com/fixed-or-variable-how-to-choose-a-mortgage-as-interest-rates-rise-national/ The Bank of Canada’s efforts to calm the housing market by raising interest rates is causing house hunters and homeowners to re-examine the type of mortgage they can take out. Global News spoke to mortgage experts and economists to help break down the factors consumers should consider when calculating monthly housing payment numbers amid an […]]]>

The Bank of Canada’s efforts to calm the housing market by raising interest rates is causing house hunters and homeowners to re-examine the type of mortgage they can take out.

Global News spoke to mortgage experts and economists to help break down the factors consumers should consider when calculating monthly housing payment numbers amid an interest rate environment. rising.

How are mortgage rates determined?

First, find out about the different types of mortgages available to you.

The story continues under the ad

A fixed rate mortgage offers homebuyers a stable interest rate for a fixed term, usually fixed in three to five year increments over the term of the mortgage.

These rates are not immediately affected by interest rate movements from the Bank of Canada – although expected increases may be built into the rate offered to you – and therefore offer a little more predictability in your monthly payments throughout long term.

A variable rate mortgage changes in response to interest rate decisions by the Bank of Canada, as financial institutions link their prime rates to the central bank’s benchmark rate. You will then get a discount on top of that.

For example, today’s variable rate mortgage contract could get you the prime rate of 3.2 per cent minus 0.6 per cent, according to Leah Zlatkin, mortgage broker and expert with lowerrates.ca.


Click to play the video:







Speculation by Canadians ‘absolutely’ plays role in soaring home prices: expert


Speculation by Canadians ‘absolutely’ plays role in soaring home prices: Expert – April 24, 2022

Variable rates are “generally” lower than their fixed-rate counterparts, Zlatkin says.

The story continues under the ad

To understand how these two types of rates might affect monthly payment strategies, the key factor is the “spread” between them.

Read more:

Major banks raise prime interest rate after Bank of Canada decision

Today, Zlatkin pegs the typical variable rate mortgage between 2.3% and 2.6%, while fixed rates hover around 3.89%. The difference is therefore about 1.6%.

This spread will tend to contract as the Bank of Canada raises interest rates. Prime rates offered by banks will increase, closing the gap between today’s fixed rate monies and future floating rate payments.

Bank of Canada Governor Tiff Macklem has made no secret that the institution will be “vigorous” with rate hikes in an effort to curb soaring inflation.

The story continues under the ad

The central bank took a rare step of 50 basis points last month to raise its overnight rate to 1.0%. Some economists are predicting another half-percentage-point hike in the next rate announcement in June.

“Everyone has an opinion on where rates are going and no one really knows unless you’re at the Bank of Canada, in which case you’re probably not telling anyone,” Zlatkin says.


Click to play the video:







The Bank of Canada raises its key rate by 0.5%


The Bank of Canada raises its key rate by 0.5% – April 13, 2022

Desjardins said in a mortgage rate forecast last week that it expects the central bank to “raise the key rate quickly” over the coming year, but that it will be kept below 2.5%.

The Bank of Canada said last month that it believes the “neutral rate” – the point at which interest rates neither fuel nor hinder the country’s economic growth – is between 2.0% and 3.0%. .0%.

The story continues under the ad

If the central bank raised rates this high in the current cycle, variable rates would rise 100 to 200 basis points and mortgage holders with this type of loan would immediately set monthly payments to reflect the higher rates.

Is it time to lock in a fixed rate mortgage?

Jimmy Jean, chief economist at Desjardins, told Global News that the Bank of Canada’s plans to rapidly raise interest rates could end the popularity of variable-rate mortgages after years of low rates influenced by the pandemic economy.

“We have seen strong demand for variable rate mortgages. But the further we go, the more this gap will narrow. … It might make sense in this context to lock in (the) interest rates that we can get now,” he says.

Sung Lee, mortgage officer at RATESDOTCA, told Global News that in the short term, there is still a “compelling reason” to go for a variable mortgage today, even with more rate hikes on the horizon. . He points to the spread of about 150 basis points between most variable offers and the current fixed rate.

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Read more:

Home prices could rise 15% in 2022 despite efforts to cool the market, says Royal LePage

Although she warns she doesn’t have a “crystal ball”, Zlatkin expects a 0.75% aggregate increase in the central bank’s overnight rate before the end of 2022. For this reason, she asserts that variable rates will remain the cheapest option in the long term. But she notes that the bottom line is not the top priority for the most risk-averse market watchers.

“If you’re the type of person who’s going to watch those Bank of Canada ads every time you have a heart attack, it’s not worth it,” she says. “Just pay a few hundred dollars more and go for a fixed rate.”

Why you might not qualify for so many mortgages

There’s another factor to consider with rising interest rates, and it could affect how much home you can afford.

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The mortgage stress test allows potential buyers – as well as those looking to refinance an existing mortgage – to qualify for the loan at the higher of two rates: either the offered rate plus 2%, or the qualifying rate of 5 .25%.

While those who have sought pre-approval for a mortgage over the past few years may have grown accustomed to qualifying at the 5.25% mark, the current rate hike could mean 3% mortgages being taken. .5% or more.

With the extra 2%, these buyers are now considering qualifying for mortgages at 5.5% or higher. Zlatkin says a couple who might have qualified for a $500,000 mortgage three months ago might only be able to get around $473,000 today.

“Therefore, your budget for the new house has to change as well,” she says.


Click to play the video: “63% of Canadian non-homeowners give up on buying a home: Ipsos poll”







63% of Canadian non-homeowners “give up” on buying a home: Ipsos survey


63% of Canadian non-homeowners “give up” on buying a home: Ipsos survey – April 29, 2022

However, just because your buying power doesn’t extend that far in the current market doesn’t mean it’s not the time to buy.

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Rising interest rates are already having a cooling effect on the Canadian housing market, Jean says, with sales starting to “moderate” in most markets and prices in provinces like Ontario and Quebec having potentially peaked.

Lee adds that with rates rising for the foreseeable future, your mortgage is unlikely to stretch much further in the months ahead.

“I don’t think rates are going to come down any further in the near term,” he said. “So if you can now get into something that fits your budget, I think that’s a great plan.”

© 2022 Global News, a division of Corus Entertainment Inc.

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3-year fixed rate personal loans continue their downward trend https://fimendurance.com/3-year-fixed-rate-personal-loans-continue-their-downward-trend/ Thu, 28 Apr 2022 19:48:35 +0000 https://fimendurance.com/3-year-fixed-rate-personal-loans-continue-their-downward-trend/ Our goal at Credible Operations, Inc., NMLS Number 1681276, hereafter referred to as “Credible”, is to give you the tools and confidence you need to improve your finances. Although we promote the products of our partner lenders who pay us for our services, all opinions are our own. The latest personal loan interest rate trends […]]]>

Our goal at Credible Operations, Inc., NMLS Number 1681276, hereafter referred to as “Credible”, is to give you the tools and confidence you need to improve your finances. Although we promote the products of our partner lenders who pay us for our services, all opinions are our own.

The latest personal loan interest rate trends from Credible Marketplace, updated weekly. (iStock)

Borrowers with a good credit application personal loans in the past seven days pre-qualified for lower rates for 3-year loans and higher rates for 5-year loans than the previous seven days.

For borrowers with credit scores of 720 or higher who used the Credible Marketplace to select a lender between April 21 and April 27:

  • Rates on 3-year fixed-rate loans averaged 10.89%, down from 11.09% the previous seven days and 11.48% a year ago.
  • Rates on 5-year fixed-rate loans averaged 13.60%, down from 13.37% the previous seven days and 12.83% a year ago.

Personal loans have become a popular means of consolidate and pay off credit card debt and other loans. They can also be used to cover unexpected expenses like medical billstake care of a major purchase or finance home improvement projects.

3-year fixed personal loan rates have fallen slightly over the past seven days, while 5-year loan rates have increased. Rates for 3-year terms decreased by 0.20% and 5-year terms increased by 0.23%. Borrowers can enjoy interest savings now with a 3-year personal loan.

Whether a personal loan is right for you often depends on several factors, including the rate you may qualify for. Comparing several lenders and their rates could help you get the best possible personal loan for your needs.

It’s always a good idea to comparison store on sites like Credible to understand how much you qualify for and choose the best option for you.

Here are the latest personal loan interest rate trends from the Credible Marketplace, updated monthly.

Personal Loan Weekly Rate Trends

The table above shows the average prequalified rates for borrowers with credit scores of 720 or higher who used the Credible Marketplace to select a lender.

For the month of March 2022:

  • 3-year personal loan rates averaged 10.36%, down from 10.52% in February.
  • 5-year personal loan rates averaged 12.73%, down from 12.99% in February.

Personal loan rates vary widely depending on credit rating and length of loan. If you’re curious about what kind of personal loan rates you might qualify for, you can use an online tool like Credible to compare the options of different private lenders. Checking your rates will not affect your credit score.

All Credible Marketplace lenders offer fixed rate loans at competitive rates. Since lenders use different methods to assess borrowers, it’s a good idea to ask for personal loan rates from multiple lenders so you can compare your options.

Current personal loan rates by credit score

In March, the average prequalified rate retained by borrowers was:

  • 8.03% for borrowers with credit scores of 780 or higher choosing a 3-year loan
  • 29.70% for borrowers with credit scores below 600 choosing a 5-year loan

Depending on factors such as your credit score, the type of personal loan you are looking for, and the repayment term of the loan, the interest rate may differ.

As the table above shows, a good credit rating can mean a lower interest rate, and rates tend to be higher on loans with fixed interest rates and longer repayment terms.

How to get a lower interest rate

Many factors influence the interest rate a lender can offer you for a personal loan. But there are steps you can take to increase your chances of getting a lower interest rate. Here are some tactics to try.

Increase credit score

Generally, people with higher credit scores qualify for lower interest rates. Steps that can help you improve your credit score over time include:

  • Pay your bills on time. Payment history is the most important factor in your credit score. Pay all your bills on time for the amount owed.
  • Check your credit report. Check your credit file to make sure there are no errors. If you find any errors, dispute them with the credit bureau.
  • Reduce your credit utilization rate. Paying off credit card debt can improve this important credit score factor.
  • Avoid opening new credit accounts. Apply for and open only the credit accounts you really need. Too many serious inquiries on your credit report in a short time could lower your credit score.

Choose a shorter loan term

Personal loan repayment terms can vary from one to several years. Typically, shorter terms come with lower interest rates because the lender’s money is at risk for a shorter period.

If your financial situation allows it, applying for a shorter term could help you get a lower interest rate. Keep in mind that the shorter term doesn’t just benefit the lender: by choosing a shorter repayment term, you’ll pay less interest over the life of the loan.

Get a co-signer

You may be familiar with the concept of a co-signer if you have student loans. If your credit isn’t good enough to qualify for the best personal loan interest rates, find a co-signer with good credit could help you get a lower interest rate.

Remember that if you are unable to repay the loan, your co-signer will have to repay it. And co-signing a loan could also affect their credit score.

Compare rates from different lenders

Before applying for a personal loan, it’s a good idea to shop around and compare offers from several different lenders to get the lowest rates. Online lenders generally offer the most competitive rates and can be quicker to disburse your loan than a physical establishment.

But don’t worry, comparing rates and terms doesn’t have to be a tedious process.

Credible is easy. Simply enter the amount you wish to borrow and you can compare multiple lenders to choose the one that suits you best.

About Credible

Credible is a multi-lender marketplace that allows consumers to discover the financial products best suited to their particular situation. Credible’s integrations with major lenders and credit bureaus allow consumers to quickly compare accurate and personalized loan options without putting their personal information at risk or affecting their credit score. The Credible Marketplace delivers an unparalleled customer experience, as evidenced by over 4,500 positive Trustpilot reviews and a TrustScore of 4.7/5.

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3-year fixed-rate personal loans fall slightly https://fimendurance.com/3-year-fixed-rate-personal-loans-fall-slightly/ Mon, 25 Apr 2022 19:34:15 +0000 https://fimendurance.com/3-year-fixed-rate-personal-loans-fall-slightly/ Our goal at Credible Operations, Inc., NMLS Number 1681276, hereafter referred to as “Credible”, is to give you the tools and confidence you need to improve your finances. Although we promote the products of our partner lenders who pay us for our services, all opinions are our own. The latest personal loan interest rate trends […]]]>

Our goal at Credible Operations, Inc., NMLS Number 1681276, hereafter referred to as “Credible”, is to give you the tools and confidence you need to improve your finances. Although we promote the products of our partner lenders who pay us for our services, all opinions are our own.

The latest personal loan interest rate trends from Credible Marketplace, updated weekly. (iStock)

Borrowers with a good credit application personal loans in the last seven days pre-qualified for slightly lower rates for 3-year fixed rates and higher for 5-year fixed rates than the previous seven days.

For borrowers with credit scores of 720 or higher who used the Credible Marketplace to select a lender between April 18 and April 24:

  • Rates on 3-year fixed-rate loans averaged 10.94%, down from 10.96% the previous seven days and from 11.16% a year ago.
  • Rates on 5-year fixed-rate loans averaged 13.35%, down from 13.28% the previous seven days and from 13.73% a year ago.

Personal loans have become a popular means of consolidate and pay off credit card debt and other loans. They can also be used to cover unexpected expenses like medical billstake care of a major purchase or finance home improvement projects.

3-year fixed personal loan rates have fallen slightly over the past seven days, while 5-year loan rates have increased. Rates for 3-year terms decreased by 0.02% and 5-year terms increased by 0.07%. Despite the rise in 5-year loans, rates remain lower than they were at the same time a year ago. Borrowers can enjoy interest savings with a 3 or 5 year personal loan now.

Whether a personal loan is right for you often depends on several factors, including the rate you may qualify for. Comparing several lenders and their rates could help you get the best possible personal loan for your needs.

It’s always a good idea to comparison store on sites like Credible to understand how much you qualify for and choose the best option for you.

Here are the latest personal loan interest rate trends from the Credible Marketplace, updated monthly.

Personal Loan Weekly Rate Trends

The table above shows the average prequalified rates for borrowers with credit scores of 720 or higher who used the Credible Marketplace to select a lender.

For the month of March 2022:

  • 3-year personal loan rates averaged 10.36%, down from 10.52% in February.
  • 5-year personal loan rates averaged 12.73%, down from 12.99% in February.

Personal loan rates vary widely depending on credit rating and length of loan. If you’re curious about what kind of personal loan rates you might qualify for, you can use an online tool like Credible to compare the options of different private lenders. Checking your rates will not affect your credit score.

All Credible Marketplace lenders offer fixed rate loans at competitive rates. Since lenders use different methods to assess borrowers, it’s a good idea to ask for personal loan rates from multiple lenders so you can compare your options.

Current personal loan rates by credit score

In March, the average prequalified rate retained by borrowers was:

  • 8.03% for borrowers with credit scores of 780 or higher choosing a 3-year loan
  • 29.70% for borrowers with credit scores below 600 choosing a 5-year loan

Depending on factors such as your credit score, the type of personal loan you are looking for, and the repayment term of the loan, the interest rate may differ.

As the chart above shows, a good credit rating can mean a lower interest rate, and rates tend to be higher on loans with fixed interest rates and longer repayment terms.

How to get a lower interest rate

Many factors influence the interest rate a lender can offer you for a personal loan. But there are steps you can take to increase your chances of getting a lower interest rate. Here are some tactics to try.

Increase credit score

Generally, people with higher credit scores qualify for lower interest rates. Steps that can help you improve your credit score over time include:

  • Pay your bills on time. Payment history is the most important factor in your credit score. Pay all your bills on time for the amount owed.
  • Check your credit report. Check your credit file to make sure there are no errors. If you find any errors, dispute them with the credit bureau.
  • Reduce your credit utilization rate. Paying off credit card debt can improve this important credit score factor.
  • Avoid opening new credit accounts. Apply for and open only the credit accounts you really need. Too many serious inquiries on your credit report in a short time could lower your credit score.

Choose a shorter loan term

Personal loan repayment terms can vary from one to several years. Typically, shorter terms come with lower interest rates because the lender’s money is at risk for a shorter period.

If your financial situation allows it, applying for a shorter term could help you get a lower interest rate. Keep in mind that the shorter term doesn’t just benefit the lender: by choosing a shorter repayment term, you’ll pay less interest over the life of the loan.

Get a co-signer

You may be familiar with the concept of a co-signer if you have student loans. If your credit isn’t good enough to qualify for the best personal loan interest rates, find a co-signer with good credit could help you get a lower interest rate.

Remember that if you are unable to repay the loan, your co-signer will have to repay it. And co-signing a loan could also affect their credit score.

Compare rates from different lenders

Before applying for a personal loan, it’s a good idea to shop around and compare offers from several different lenders to get the lowest rates. Online lenders generally offer the most competitive rates and can be quicker to disburse your loan than a physical establishment.

But don’t worry, comparing rates and terms doesn’t have to be a tedious process.

Credible is easy. Simply enter the amount you wish to borrow and you can compare multiple lenders to choose the one that suits you best.

About Credible

Credible is a multi-lender marketplace that allows consumers to discover the financial products best suited to their particular situation. Credible’s integrations with major lenders and credit bureaus allow consumers to quickly compare accurate and personalized loan options without putting their personal information at risk or affecting their credit score. The Credible Marketplace delivers an unparalleled customer experience, as evidenced by over 4,500 positive Trustpilot reviews and a TrustScore of 4.7/5.

]]>
Basic Guide to Foreign Currency Term Deposit Accounts https://fimendurance.com/basic-guide-to-foreign-currency-term-deposit-accounts/ Fri, 22 Apr 2022 23:00:20 +0000 https://fimendurance.com/basic-guide-to-foreign-currency-term-deposit-accounts/ – Advertisement – Foreign currency term deposit accounts are quite similar to Singapore term deposit accounts but differ by introducing the risk of fluctuating exchange rates. This guide examines how these deposits work, covering the key factors that drive interest earned and important risks to consider. What are Foreign Currency Term Deposit Accounts? Foreign currency […]]]>

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Foreign currency term deposit accounts are quite similar to Singapore term deposit accounts but differ by introducing the risk of fluctuating exchange rates. This guide examines how these deposits work, covering the key factors that drive interest earned and important risks to consider.

What are Foreign Currency Term Deposit Accounts?

Foreign currency term deposit accounts allow consumers to convert Singapore dollars or SGD into units of foreign currency, which are then deposited for a specified period, earning interest at a pre-determined rate.

These interest rates offered by the bank depend on the duration of the deposit, as well as the amount of funds deposited. In most cases, longer terms and higher deposit amounts will earn you the best interest rates on fixed deposits.

When the deposit term ends, the deposited funds are converted back into SGD at the prevailing exchange rate.

Singapore banks offer fixed foreign currency deposits for a variety of foreign currencies, each with unique interest rates on fixed deposits. Currencies offered typically include USD (US), AUD (Australia), CAD (Canada), GBP (UK) and more.

Surprisingly, different banks offer different interest rates for the same countries. For example, one bank may offer 0.78% interest per annum on deposits of AUD 10,000 over six months, while another may offer 1.7% per annum.

In most cases, banks require a minimum deposit, usually expressed in units of foreign currency. Requirements are usually between 5,000 and 10,000 units. However, some countries tend to have higher specific requirements. For example, JPY (Japan) and CHN (China) often have minimum deposit requirements of 250,000+ units.

Factors that determine total deposit income

The final amount earned on a foreign currency term deposit is highly dependent on four factors: the amount invested, the exchange rate, the interest rate offered by the bank and the term of the deposit.

To begin with, consumers need to decide how much they want to invest in terms of foreign currency units. This determines the amount paid in terms of SGD, based on the prevailing exchange rate.

For example, choosing to invest 10,000 USD would require a payment of 13,800 SGD if the exchange rate is 1.38 (1 USD = 1.38 SGD). This initial exchange rate is very important, as it determines whether consumers will gain or lose money when their deposit matures, and the funds are converted back into SGD.

Currency conversion for initial investment

The description Value
Desired foreign currency deposit amount $10,000
Foreign currency exchange rates 1.38
Payment in SGD for a deposit in foreign currency SGD13,800

Other key elements are interest rate, deposit size and term. In fact, the duration of tenure and the size of deposits determine the values ​​of interest rates. Longer terms and larger deposits are often associated with higher and better interest rates.

In fact, some banks, like UOB, tend to only offer interest rates for long terms and large deposits for certain currencies, including AUD and GBP. Interest rates can vary from as little as 0.05% per year to almost 3% per year, depending on the bank and the currency.

Finally, at the end of the deposit term, the foreign currency units are converted back to SGD at the prevailing exchange rate. Here, the value of the fixed deposit is determined.

While fixed deposits will always earn interest, this income can be completely wiped out if the final exchange rate is lower than the initial exchange rate. In other words, if the foreign currency of the deposit becomes proportionately weaker than the SGD during its tenure, the value of the deposit will become less than the amount invested when converted back into SGD, resulting in a real loss to the consumer.

On the other hand, if the exchange rate remains constant or increases, the consumer can significantly increase his income.

Illustrated loss: lower exchange rate

Part I: Investment Deposit conditions Part II: Maturation
Grab SGD13,800 Interest rate 1.50% per year Deposit amount $10,073.91
Exchange rate 1.38 Mandate 6 months Exchange rate 1.36
To pay $10,000 Int. Won $73.91 Redeemed SGD13,700.60
Total loss: SGD (-99.40)

On the other hand, if the exchange rate remains constant or increases, consumers can significantly increase their income.

Illustrated gain: exchange rate increase

Part I: Investment Deposit conditions Part II: Maturation
Grab SGD13,800 Interest rate 1.50% per year Deposit amount $10,073.91
Exchange rate 1.38 Mandate 6 months Exchange rate 1.40
To pay $10,000 Int. Won $73.91 Redeemed SGD14,103.56
Total gain: SGD 303.56

Ultimately, exchange rate variability introduces an element of risk to foreign currency term deposits. Nevertheless, there is a greater probability of gain than loss, as the inherent interest rates reinforce the final profits. In fact, the final amount gained by an increase in the exchange rate would be greater than the corresponding loss from a decrease of the same magnitude.

Impact of exchange rates on interest rates offered by banks

Exchange rates not only influence whether a fixed deposit makes or loses money; they also take into account the interest rates offered by banks. Countries with relatively stable currencies tend to be associated with lower interest rates; those with greater variability or greater risk are associated with higher interest rates.

In fact, most Singaporean banks offer 0% interest on term deposits in Euros, JPY (Japanese Yen) and CHF (Swiss Francs). In this case, the banks simply convert the SGD into foreign currency, and after a specified period, it is converted back. If these currencies strengthen during this period, the consumer still earns money, even without an interest rate.

Risks and Benefits of Foreign Currency Term Deposits

As noted, there is an obvious risk for term deposits in foreign currencies. Unlike SGD term deposits, they can potentially lose money. Consumers can also lose interest and potentially face penalty charges if they withdraw their funds before the deposit term ends.

Nevertheless, the potential gains outweigh the potential losses for these types of accounts, as long as the deposit comes with an interest rate. Opting for a “safer” currency also decreases the probability of loss.

Additionally, account holders can often extend or renew their deposit, so there is no need to convert the currency back to SGD if the exchange rate is currently low. Overall, a fixed foreign currency deposit is a great option if you’re looking for a low-maintenance way and are willing to take a little risk.

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