If you’re looking for flexible funding, you can tap into your home equity with a home equity line of credit (HELOC). A HELOC is a revolving line of credit that uses your home as collateral. Using a HELOC can be risky, so homeowners typically use them for major life expenses, not daily expenses. Let’s learn about the best and worst ways to use a HELOC, along with alternative credit options that might better fit your needs. Key Takeaways Homeowners can use HELOCs to access equity for cash to pay for…
Read MoreToday’s Mortgage Rates & Trends, May 9, 2022
Average 30- and 15-year mortgage rates climbed back toward their recent peaks, the latest in a series of up-and-down swings. The average on a conventional 30-year fixed mortgage rose to 5.92% from 5.77% the previous business day. Last month it reached 6.19%, its highest point since at least 2019, and likely much farther back. (Our daily mortgage rate data only goes back to April 2021, but our data on yearly highs and lows dates back to 2020, so we know rates weren’t higher in 2020, and if other measures are…
Read More5 Types of Mortgage Loans
If you’re like most people, you’ll need to take out a mortgage to buy a home. According to the US Census Bureau, 94% of people who bought a home in 2021 purchased it with a mortgage. When you start shopping for a mortgage, it’s easy to get overwhelmed. There are lots of different types of mortgages, each of which is better for some people than others. Here’s how to tell which type of mortgage might be best for you. Key Takeaways Fixed-rate conventional loans are the most popular type of…
Read MoreRecent Losing Streak Ends Longest S&P Run Since 1928
That’s the last time (before now) the S&P 500 had fallen five weeks in a row, showing why the stock market’s recent deterioration is so hard to take. The nearly 11-year stretch without such losing streaks was the longest in the history of the index going back to 1928, according to analysts at Deutsche Bank, suggesting that the “relentless march” of US stocks over the last decade was a fluke characterized in part by “a buy the dip narrative.” “The last decade has very much been the exception rather than…
Read MoreWhich Is Best for You?
Starter home Forever home Definition A home you plan to own for a short period before buying another one The only home you plan to buy Home features May have drawbacks in size, location, or other features Must meet both current and future needs Cost Typically cheaper Typically more expensive Mortgage May prefer an ARM May prefer a fixed rate Incentives Last the life of the loan, but don’t carry over to the next loan Last the life of the loan Equity Builds equity Builds equity Home Features A starter…
Read MoreTypes of Whole Life Insurance
Whole life insurance is a type of permanent coverage that’s offered in a range of “styles” to suit different needs. Since permanent coverage, including whole life, is more expensive than temporary or “term” coverage, many of the different types of whole life insurance have evolved to help owners manage the cost of premiums. But other types are built to maximize the death benefit or the cash value “savings” element. Before you purchase permanent life insurance, consider the range of available options to determine which best suits your needs. What Is…
Read MoreShelter Insurance Homeowner’s Policy Review
One of the biggest investments you will ever make is your home. In the event of an unexpected loss, you need a homeowner’s insurance company you can depend on to restore your home and its contents to their previous condition. One company that deserves consideration for your homeowner’s insurance needs is Shelter Insurance. Shelter Insurance was founded in 1946 under the name of MFA Insurance Companies. In the beginning, the company only offered auto policies to residents of Missouri. From these small beginnings, the company grew to be one of…
Read MoreWhat Is an Insurance Declaration Page?
Key Takeaways An insurance declaration page sums up what is in an insurance policy. It comes at the start of policy paperwork and contains information such as your deductible, coverage, discounts, and more. You should check your dec page for errors as soon as you get it. Errors may make it hard to file a claim. You may need to show this page to your lender as proof of coverage. Definition and Examples of an Insurance Declaration Page The insurance declaration page It is part of your insurance policy. It…
Read MoreWhat Is Amortization?
Definition and Examples of Amortization Amortization is the way loan payments are applied to certain types of loans. Typically, the monthly payment remains the same, and it’s divided among interest costs (what your lender gets paid for the loan), reducing your loan balance (also known as “paying off the principal loan”), and other expenses like property taxes. Your last loan payment will pay off the final amount remaining on your debt. For example, after exactly 30 years (or 360 monthly payments), you’ll pay off a 30-year mortgage. Amortization tables help…
Read MoreCD Early Withdrawal Penalties
Early Withdrawal Penalties at Major Banks bank One-year CD penalty Five-year CD penalty Ally 60 days of interest 150 days of interest Bank of America 90 days of interest 365 days of interest Capital one Three months of interest Six months of interest Chase 180 days of interest 365 days of interest Discover six months of interest 18 months of interest Synchrony 90 days of interest 365 days of interest TD Bank six months of interest 24 months of interest Wells Fargo six months of interest 12 months of interest…
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