Low Interest Loans – Win Win Lose http://winwinlose.net/ Wed, 23 Nov 2022 15:07:13 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://winwinlose.net/wp-content/uploads/2021/06/icon-9.png Low Interest Loans – Win Win Lose http://winwinlose.net/ 32 32 3 things you shouldn’t take out a personal loan for https://winwinlose.net/3-things-you-shouldnt-take-out-a-personal-loan-for/ Wed, 23 Nov 2022 14:00:19 +0000 https://winwinlose.net/3-things-you-shouldnt-take-out-a-personal-loan-for/ Image source: Getty Images It’s important to borrow for the right reasons. Important points With personal loans, you can borrow money for any purpose. There are certain scenarios where taking one out might not pay off. It’s not a good idea to use a personal loan to finance a car, vacation, or small business without […]]]>

Image source: Getty Images

It’s important to borrow for the right reasons.


Important points

  • With personal loans, you can borrow money for any purpose.
  • There are certain scenarios where taking one out might not pay off.
  • It’s not a good idea to use a personal loan to finance a car, vacation, or small business without a solid plan.

There’s a reason consumers prefer personal loans. Not only do they usually have competitive interest rates, but they can also close fairly quickly. Plus, a personal loan allows you to borrow money for any reason, giving you a lot of freedom with your loan proceeds.

But it’s important to take out a personal loan for the right reason. And here are a few things you really shouldn’t get a personal loan for.

1. A car

Technically, you can take out a personal loan and use the proceeds to buy a car. But that’s generally not your best choice. You will often find lower interest rates on a car loan than on a personal loan, so the latter could end up being a more expensive option for financing a vehicle.

Discover: These personal loans are best for debt consolidation

More: Pre-qualify for a personal loan without hurting your credit score

Personal loans are unsecured, which means they are not tied to a specific asset. Auto loans, on the other hand, are collateralized by the vehicles they finance.

This means if you default on your car loan, you could risk losing your vehicle. If you default on your personal loan payments, that’s not necessarily going to happen — but you could face other harsh consequences, such as getting fired.

Because auto loans are secured, they are not quite as risky as personal loans. And in exchange for that reduced risk, you might get a lower interest rate on a car loan you take out.

2. A vacation

Taking vacations is a great way to clear your head and avoid burnout at work. As such, it is an important matter. But you don’t have to travel to enjoy some time away from the hustle and bustle.

If you’re short on money, you can explore your own city or take some time to relax close to home. And if you can’t afford to pay for a vacation, it really isn’t a good idea to take out a personal loan to fund one.

Every time you borrow money, you earn interest on that amount. So a modest vacation could end up costing a lot more once you’ve paid off your personal loan.

3. A business idea that you haven’t really thought through

Small business loans are not always easy to come by. If you can’t snag one, you can opt for a personal loan instead and use the proceeds towards start-up costs. But if you’re going down this route, make sure you have a solid business plan first.

Unfortunately, many small businesses fail within a few years. When that happens, you’ll be on the hook for your personal loan payments, and at that point they could be a major financial drain.

A personal loan can be a solid credit option in a variety of circumstances. But think things through before you take one out. And also make sure there is no more ideal credit option to turn to – one that is more affordable from an interest rate standpoint.

The Best Personal Loans of Rise for 2022

Our team of independent experts scoured the fine print to find the handpicked personal loans that offer competitive interest rates and low fees. Start reviewing The Ascent’s best personal loans for 2022.

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China keeps interest rates on loans unchanged for the third month in a row. From Investing.com https://winwinlose.net/china-keeps-interest-rates-on-loans-unchanged-for-the-third-month-in-a-row-from-investing-com/ Mon, 21 Nov 2022 01:48:00 +0000 https://winwinlose.net/china-keeps-interest-rates-on-loans-unchanged-for-the-third-month-in-a-row-from-investing-com/ ©Reuters. By Ambar Warrick Investing.com– The People’s Bank of China (PBoC) left interest rates unchanged on Monday for the third straight month as the central bank struggles to strike a balance between supporting economic growth and curbing further depreciation of the yuan . The PBoC left its one-year LPR (LPR), which sets interest rates on […]]]>

©Reuters.

By Ambar Warrick

Investing.com– The People’s Bank of China (PBoC) left interest rates unchanged on Monday for the third straight month as the central bank struggles to strike a balance between supporting economic growth and curbing further depreciation of the yuan .

The PBoC left its one-year LPR (LPR), which sets interest rates on short-term loans, unchanged at 3.65%, while the five-year LPR, which normally feeds mortgage rates, was kept at 4.30%.

The LPR is used by banks to determine the interest they charge their customers and is calculated each month based on proposals submitted to the PBoC by 18 nominated commercial banks.

The bank cut both LPRs earlier this year to increase liquidity and support the sharply slowing economic growth.

A cut in the one-year LPR aimed to boost short-term liquidity, while the five-year interest rate was cut to support China’s struggling real estate sector, which has also contributed to the country’s severe economic downturn this year.

But this weighed on the euro, pushing it to lows last seen during the 2008 financial crisis. It hit a record low in September.

The yuan fell 0.5% on Monday, while its offshore counterpart fell 0.6%. The currency was also weighed down by uncertainty about US interest rate hikes, which have been a major source of pressure this year as well.

China is grappling with the worst COVID-19 outbreak in seven months, which is expected to take another heavy toll on the world’s second-largest economy as it enacts more lockdowns to stem the spread of the virus.

Rising infections and efforts to combat them have clouded recent optimism that the country will scale back its strict zero-COVID policy, which has been at the heart of its sharp economic slowdown this year.

Although the country has introduced a number of stimulus measures to support economic growth, they have yet to reflect an improving economy. Beijing recently introduced spending and debt relief measures to support the struggling real estate sector.

However, economic indicators released earlier this month showed that the world’s second largest economy is struggling to cope with COVID-related disruptions. and both contracted significantly in October and will likely be reflected in a weaker Q4 GDP reading.

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David Y Ige | HIEMA PRESS RELEASE: Only 3 weeks left to apply for small business working capital loans due to drought https://winwinlose.net/david-y-ige-hiema-press-release-only-3-weeks-left-to-apply-for-small-business-working-capital-loans-due-to-drought/ Fri, 18 Nov 2022 18:52:37 +0000 https://winwinlose.net/david-y-ige-hiema-press-release-only-3-weeks-left-to-apply-for-small-business-working-capital-loans-due-to-drought/ HIEMA PRESS RELEASE: Only 3 weeks left to apply for small business working capital loans due to drought Posted on November 18, 2022 in Current Department News, Newsroom HONOLULU — Application deadline is Thursday, December 8, 2022 for US Small Business Administration (SBA) economic injury disaster loans related to drought conditions in Hawaii, Kalawao and […]]]>

HIEMA PRESS RELEASE: Only 3 weeks left to apply for small business working capital loans due to drought

Posted on November 18, 2022 in Current Department News, Newsroom

HONOLULU — Application deadline is Thursday, December 8, 2022 for US Small Business Administration (SBA) economic injury disaster loans related to drought conditions in Hawaii, Kalawao and Maui counties.

The loans are intended to compensate for the economic damage caused by the loss of income caused by the ongoing drought.

“These loans can be used to pay off fixed debt, payrolls, liabilities and other bills that cannot be paid due to the impact of the disaster,” Tanya N. Garfield, SBA’s director of Disaster Field Operations – West, said in a statement press release. “The property damage allowance is available regardless of whether the applicant has suffered property damage.”

Loans of up to $2 million to meet working capital needs resulting from the disaster are available to qualifying small nonagricultural businesses, small farming cooperatives, small aquaculture companies and most private nonprofit organizations of all sizes.

The low-interest loans have an interest rate of 2.94 percent for companies and 1.875 percent for private non-profit organizations with a maximum term of 30 years.

The Hawai’i Emergency Management Agency encourages qualifying companies in need of assistance to apply.

Applicants can learn more and find forms on the SBA website at https://disasterloanassistance.sba.gov/. You can also call (800) 659-2955 or email [email protected] for more informations; People who are deaf, hard of hearing, or have a speech impairment can dial 7-1-1 to access telecommunications relay services.

Completed applications should be sent to the US Small Business Administration, Processing and Disbursement Center, 14925 Kingsport Road, Fort Worth, TX 76155.

# # #

Contact:

Adam Weintraub
communications director

[email protected]
808-620-5417

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$19.2M Loan Granted For Cameron Parish Ferry Project – American Press https://winwinlose.net/19-2m-loan-granted-for-cameron-parish-ferry-project-american-press/ Tue, 15 Nov 2022 23:38:47 +0000 https://winwinlose.net/19-2m-loan-granted-for-cameron-parish-ferry-project-american-press/ $19.2 million loan granted for Cameron Parish Ferry project Published 12:30 p.m. Tuesday, November 15, 2022 The M/V Cameron II ferry in Cameron Parish. (Photo courtesy of the Louisiana Department of Development and Transportation) The US Department of Transportation announced today that its Build America Bureau has provided the Louisiana State Bond Commission with soft […]]]>

$19.2 million loan granted for Cameron Parish Ferry project

Published 12:30 p.m. Tuesday, November 15, 2022

The US Department of Transportation announced today that its Build America Bureau has provided the Louisiana State Bond Commission with soft loans totaling $40.9 million to benefit the Louisiana Department of Transportation and Development for a ferry project and bridge improvement program. The bureau helps communities across the country reduce the cost of infrastructure projects by providing loans to fund transportation infrastructure and the Innovation Act, known as TIFIA loans, and other types of funding.

The two projects that will benefit from TIFIA funding are:

  • A $19.2 million loan is available for the Cameron Parish Ferry Project Providing ferry service between the Calcasieu Ship Canal on LA 27 between Cameron and Holly Beach in Cameron Parish. The scope of the project includes the design and construction of two vehicle/passenger ferries, each capable of carrying a minimum of 35 cars and six articulated lorries and 500 passengers.
  • A $21.7 million loan is available for the Nationwide bridge program which consists of six projects, including the replacement of 11 structurally deficient rural bridges in six different communities in central and east Louisiana.

Projects qualify for TIFIA’s Rural Project Initiative, which offers loans for up to 49 percent of the project’s eligible costs and fixed interest rates equal to half the US Treasury rate.

“USDOT’s support for these ferry and bridge projects will help Louisiana move people, goods and services across the state,” he said Deputy Minister for Transport Polly Trottenberg. “We are excited to support Louisiana’s efforts to improve infrastructure, connectivity and security for rural communities.”

USDOT’s Build America Bureau was established during the Obama administration as a “one-stop shop” to help states and other project sponsors complete infrastructure projects. The Bureau offers low-interest, long-term loan programs, technical assistance, and best practices in project design, financing, delivery, and operations. The bipartisan infrastructure bill signed by President Biden in November 2021 expands the eligibility of projects for the Bureau’s TIFIA loan program and extends the life of the loans, giving borrowers additional flexibility.

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America Recycles Day emphasizes the economic benefits of recycling https://winwinlose.net/america-recycles-day-emphasizes-the-economic-benefits-of-recycling/ Sat, 12 Nov 2022 15:02:03 +0000 https://winwinlose.net/america-recycles-day-emphasizes-the-economic-benefits-of-recycling/ Tuesday is America Recycles Day, although three Ventura County companies will participate the following week when they receive ceremonial checks from a low-interest loan program that encourages recycling activities. America Recycles Day, which takes place on November 15 each year, is coordinated by Keep America Beautiful, a non-profit organization supported primarily by large corporations and […]]]>

Tuesday is America Recycles Day, although three Ventura County companies will participate the following week when they receive ceremonial checks from a low-interest loan program that encourages recycling activities.

America Recycles Day, which takes place on November 15 each year, is coordinated by Keep America Beautiful, a non-profit organization supported primarily by large corporations and public entities. Over the past year, the nonprofit organization helped sponsor nearly 3,000 related events across all 50 states.

On Mondays and Tuesdays from 8 a.m. to 4 p.m., the Ventura County General Services Agency celebrates America Recycles Day with an e-waste collection event at the Government Center Service Building, 800 S. Victoria Ave. in Ventura. DVDs and CDs are also accepted as donations to a county library. At the agency’s April event to commemorate Earth Day, 18 pallets full of e-waste were collected, equivalent to approximately 11,200 pounds of material.

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The deadline for applying for small business drought relief loans is fast approaching https://winwinlose.net/the-deadline-for-applying-for-small-business-drought-relief-loans-is-fast-approaching/ Wed, 09 Nov 2022 18:04:00 +0000 https://winwinlose.net/the-deadline-for-applying-for-small-business-drought-relief-loans-is-fast-approaching/ FORT WORTH, Texas (KSWO) – Director Tanya N. Garfield of the US Small Business Administration’s Disaster Field Operations Center-West recalled today The deadline for small nonfarm businesses in 76 counties of Oklahoma and neighboring counties in Arkansas, Colorado, Kansas, New Mexico and Texas to apply for an SBA disaster loan for economic damage is December […]]]>

FORT WORTH, Texas (KSWO) – Director Tanya N. Garfield of the US Small Business Administration’s Disaster Field Operations Center-West recalled today

The deadline for small nonfarm businesses in 76 counties of Oklahoma and neighboring counties in Arkansas, Colorado, Kansas, New Mexico and Texas to apply for an SBA disaster loan for economic damage is December 8.

These soft loans are designed to offset economic losses due to reduced revenue due to the drought that began on November 1, 2021.

Eligible counties are:

Primary Oklahoma counties: Alfalfa, Atoka, Beaver, Beckham, Blaine, Bryan, Caddo, Canadian, Carter, Choctaw, Cimarron, Cleveland, Coal, Comanche, Cotton, Craig, Creek, Custer, Dewey, Ellis, Garfield, Garvin, Grady , Grant, Greer, Harmon, Harper, Hughes, Jackson, Jefferson, Johnston, Kay, Kingfisher, Kiowa, Le Flore, Lincoln, Logan, Love, Major, Marshall, Mayes, McClain, McCurtain, Murray, Noble, Nowata, Oklahoma, Osage, Pawnee, Payne, Pittsburg, Pontotoc, Pottawatomie, Pushmataha, Roger Mills, Rogers, Seminole, Stephens, Texas, Tillman, Tulsa, Wagoner, Washington, Washita, Woods, and Woodward;

Neighboring Oklahoma counties: Cherokee, Delaware, Haskell, Latimer, McIntosh, Muskogee, Okfuskee, Okmulgee, Ottawa, and Sequoyah;

Neighboring Arkansas counties: Little River, Polk, Scott, Sebastian, and Sevier;

Neighboring County Colorado: Baca;

Neighboring Kansas counties: Barber, Chautauqua, Cherokee, Clark, Comanche, Cowley, Harper, Labette, Meade, Montgomery, Morton, Seward, Stevens, and Sumner;

Neighboring County of New Mexico: Union;

Neighboring Texas counties: Bowie, Childress, Clay, Collingsworth, Cooke, Dallam, Fannin, Grayson, Hansford, Hardeman, Hemphill, Lamar, Lipscomb, Montague, Ochiltree, Red River, Sherman, Wheeler, Wichita, and Wilbarger.

According to Director Tanya N. Garfield of the US Small Business Administration’s Disaster Field Operations Center-West, small nonfarm businesses, small farm cooperatives, small businesses involved in aquaculture, and most private nonprofit organizations of any size can apply for disaster loans for Up to $2 million in economic damages to meet working capital needs caused by the disaster.

“Economic damage disaster loans can be used to pay off fixed debts, payrolls, liabilities and other bills that cannot be paid due to the impact of the disaster,” Garfield said. “The SBA eligibility includes both the economic impact on businesses that depend on farmers and ranchers who suffered agricultural production losses as a result of the disaster, and on businesses directly affected by the disaster. Financial Damage Assistance is available regardless of whether the applicant has suffered property damage.”

The interest rate is 2.83 percent for corporations and 1.875 percent for private non-profit organizations with terms up to 30 years. Loan amounts and terms are determined by the SBA and are based on each applicant’s financial situation.

Applicants can apply online, get additional disaster assistance information, and download applications at https://disasterloanassistance.sba.gov/. Applicants may also call SBA’s Customer Service Center at (800) 659-2955 or email disastercustomerservice@sba.gov for more information on SBA disaster relief.

Individuals who are deaf, hard of hearing, or have a speech impairment, please dial 7-1-1 to access telecommunications relay services. Completed applications should be sent to the US Small Business Administration, Processing and Disbursement Center, 14925 Kingsport Road, Fort Worth, TX 76155.

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Business news: GF residential property sale…new building owners & youth sports https://winwinlose.net/business-news-gf-residential-property-sale-new-building-owners-youth-sports/ Sun, 06 Nov 2022 22:39:40 +0000 https://winwinlose.net/business-news-gf-residential-property-sale-new-building-owners-youth-sports/ America’s employers continued to hire vigorously in October, adding 261,000 jobs, a sign the economy remains a picture of solid job growth and painful inflation. The unemployment rate rose to a still-healthy 3.7% from a five-decade low of 3.5%. Average hourly earnings rose 4.7% year-on-year, a smaller year-on-year increase than in September. Home sales in […]]]>

America’s employers continued to hire vigorously in October, adding 261,000 jobs, a sign the economy remains a picture of solid job growth and painful inflation. The unemployment rate rose to a still-healthy 3.7% from a five-decade low of 3.5%. Average hourly earnings rose 4.7% year-on-year, a smaller year-on-year increase than in September.

Home sales in Grand Forks / East Grand Forks fell slightly in October compared to a year earlier. A total of 80 single-family homes and condominiums were sold last month. That compares to 88 in each of the past two years. According to the Grand Forks Area Association of Realtors, the median sale price in October was $264,890. Figures do not include private sales.

The National Retail Federation, the country’s largest retail group, expects holiday sales growth to slow to a range of 6% to 8% this year, down from stormy 13.5% growth last year. The trade group forecasts sales for the November-December period to rise to between $942.6 billion and $960.4 billion. Holiday sales have grown an average of 4.9% over the last 10 years.

The Labor Market Information Center calculated data on North Dakota’s cost of living. Seven basic cost-of-living categories are tracked: food, housing, healthcare, transportation, childcare, other necessities, and taxes. In Grand Forks County, a family of four needs an annual income of $70,594 to cover living expenses. That’s $744 below the national average.

Since allowing electronic pull tabs in North Dakota during the 2017 legislature, the number of e-tab machines in the state has grown to approximately 4,500 machines in 800 locations — surpassing the approximately 3,300 Class III slots found in tribal casinos in North Dakota located in North Dakota. Gov. Burgum expects lawmakers to take a comprehensive look at all gambling — including sports betting and e-tabs — during the 2023 session.

Grand Forks P&Z has granted a temporary R-2 zone change permit for the 1600 4th Avenue North property. United Way wants to buy the former Wesley United Church for a daycare and coffee shop. The proposed PUD states that the coffee shop is inside the building and has no drive-through. The city council will consider the change on December 19.

(pictured)

The North Dakota Department of Commerce has awarded $1,804,803 in Community Development Block Grant (CDBG) funding to 13 North Dakota communities. The program provides financial support in the form of grants for public institutions, public services, housing rehabilitation and economic development projects. Manvel was paid $89,372 to work on the city’s sidewalks and make them ADA accessible.

Minnesota will receive $15 million from the US Department of Agriculture to set up a revolving loan program that will support small and medium-sized meat and poultry processors. The fund will offer low-interest loans for establishing, expanding or operating slaughterhouses and value-added meat and poultry processing plants. Loan applications will be available in early 2023.

Volkswagen is recalling nearly 225,000 vehicles in the US because tire pressure monitoring systems may not detect air loss in all four tires at the same time. The recall affects certain 2019 Tiguan, Golf Sportswagen, Golf Alltrack, Golf R and Audi Q3 and A3. Also covered are some 2019 and 2020 Jetta, Golf, Atlas and Audi A3 models and some 2020-2021 Atlas Cross Sport and Atlas vehicles. Notification letters will be sent out on December 30th.

Sticker shock in youth sports is nothing new, but the onslaught of double-digit inflation across America this year has added a costly wrinkle to its way to baseball stadiums, swimming pools and dance studios across America. It has forced some families to reduce the number of seasons, leagues, or sports their children can play in any given year, while motivating league organizers to get more creative in finding ways to keep prices low and the keep participation high.

Starbucks revenue rose 3% to a record $8.41 billion in the fiscal fourth quarter as U.S. customers shrugged off higher prices for frothy drinks and snacks. The Seattle coffee giant said its same-store sales — or sales at locations that have been open for at least a year — rose 7%. That beat Wall Street forecasts.

As America eats an estimated 600 million pounds of Halloween candy, a handful of companies are trying to make it easier to recycle all of that packaging. Mars Wrigley is sending 17,400 free bags to US consumers to collect plastic packaging and send it to a specialty recycler. Rubicon Technologies is sending 5,000 free boxes to schools and businesses to recycle candy wrappers. Plastic packaging is difficult to recycle because it is small, contains food waste and has little value.

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Korea is expanding venture capital funding for start-up investments https://winwinlose.net/korea-is-expanding-venture-capital-funding-for-start-up-investments/ Fri, 04 Nov 2022 06:40:58 +0000 https://winwinlose.net/korea-is-expanding-venture-capital-funding-for-start-up-investments/ Minister of SMEs and Startups Lee Young addresses a briefing at Tips Town in Gangnam, south Seoul on Friday. (Ministry for SMEs and Startups) The Ministry of SMEs and Startups announced on Friday that it will expand its funding for venture capital investments in startups to a total of 8 trillion won ($5.6 billion) by […]]]>

Minister of SMEs and Startups Lee Young addresses a briefing at Tips Town in Gangnam, south Seoul on Friday. (Ministry for SMEs and Startups)

The Ministry of SMEs and Startups announced on Friday that it will expand its funding for venture capital investments in startups to a total of 8 trillion won ($5.6 billion) by 2026 to boost startup growth.

“In the face of inflation, high interest rates and a strong US dollar, investment in Korean startups is slowing down,” said Lee Young, minister for SMEs and startups. “The country needs a more dynamic ecosystem to boost the private-sector-led and government-backed startup industry.”

Of the 8 trillion won, the ministry said it will create a new privately run “venture fund of funds,” a pooled investment fund worth around 400 billion won to 500 billion won set up by venture capital firms investing in other venture funds.

“By combining the venture funds under the fund-of-funds, private investment will increase by 1.5 trillion won,” Lee said during a briefing.

Compared to government-run venture funds of funds, Lee said, venture capital-run funds will be more profitable and stable.

To encourage private sector involvement, the government is giving venture capital firms and asset management firms that launch the new funds an 8 percent tax credit and a VAT exemption.

To support the start-ups’ entry into global markets, the ministry plans to create new “global funds” from the Middle East and Europe. Foreign venture capitalists can use the global funds to invest in promising Korean startups.

Lee hinted that the ministry will network with Saudi Arabia’s Investment Minister Khalid A. Al-Falih at the upcoming Comeup 2022 startup festival event, scheduled for next week in Seoul.

“As part of Saudi Arabia’s Vision 2030, the country has created new regulations that allow active overseas investments,” Lee said.

Lee also pledged differentiated funding for startups based on whether they are early, scaling or late-stage. In particular, the government will allow financial institutions that have provided loans to early-stage start-ups to be eligible for a future equity stake in the companies in exchange for their current debt.

For mid-market startups struggling with tight budgets, financial firms are encouraged to provide low-interest loans in exchange for the right to allocate newly issued shares of the startup faster than other shareholders.

Included in the 8 trillion won funding announcement is a 2 trillion won public-private investment dedicated to incubating about 1,000 advanced technology-based startups for the next five years, which was announced on Thursday.

Byun Hye-jin (hyejin2@heraldcorp.com)

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FHFA eliminates upfront mortgage fees for 1 in 5 home buyers https://winwinlose.net/fhfa-eliminates-upfront-mortgage-fees-for-1-in-5-home-buyers/ Tue, 01 Nov 2022 10:33:03 +0000 https://winwinlose.net/fhfa-eliminates-upfront-mortgage-fees-for-1-in-5-home-buyers/ First-time homebuyers are expected to see lower borrowing costs If you’re looking to buy a home, you might be in luck — at least if you’re taking out a standards-compliant loan. The Federal Housing Finance Agency (FHFA) eliminates fees on these mortgages for about 20% of homebuyers. It’s a move that could lower interest rates […]]]>

First-time homebuyers are expected to see lower borrowing costs

If you’re looking to buy a home, you might be in luck — at least if you’re taking out a standards-compliant loan. The Federal Housing Finance Agency (FHFA) eliminates fees on these mortgages for about 20% of homebuyers. It’s a move that could lower interest rates and improve affordability for many Americans, especially as housing costs rise.

Could you see your borrowing costs drop as a result of these changes? Here’s what you need to know.

Who is eligible for lower borrowing costs?

There are four groups of homebuyers for whom their upfront loan fees — also known as guarantee fees or “G fees” — are eliminated when they use traditional loans backed by Fannie Mae or Freddie Mac.

These include:

  • Low- to middle-income first-time home buyers: You must have a household income of 100% or less of the area’s median income (or 120% or less if you are in a high-cost housing market).
  • Buyers using the HomeReady (Fannie Mae) or Home Possible (Freddie Mac) loan programs: Both ready to go and home possible are low-down payment mortgage options for low-income buyers
  • Buyers using HFA Advantage (Freddie Mac) or HFA Preferred (Fannie Mae) loans: HFA loan are affordable mortgages offered by state and local housing finance agencies (HFAs).
  • Single-Family Loans Covered Under the Duty-to-Serve Program: This program helps low- and middle-income families with funding manufactured housing and rural home purchases

Bob Broeksmit, President of the Mortgage Bankers Association, said: “Given the ongoing affordability challenges faced by homebuyers, the FHFA’s targeted adjustments to the GSE’s pricing framework are timely and will initially improve access to credit for low-income households and middle-income -time shoppers and minority shoppers.”

On the other hand, some borrowers will actually see higher costs as a result of the announcement. New fees for refinance loans with disbursement will be introduced early next year, according to the FHFA.

How Much Money Are Eligible Homebuyers Saving?

For most home buyers, this change won’t actually result in a reduction in upfront costs. G fees are usually passed on to buyers in the form of higher interest rates, so eliminating these fees results in lower interest rates. This helps borrowers save on both their monthly payments and their long-term interest costs.

The exact fee a borrower pays depends on their loan amount, credit history, and other factors. But according to the FHFA, the average G fee in 2020 was 54 basis points — the difference between a 5% rate and a 5.54% rate.

For a $300,000 30-year mortgage, a 0.54% interest rate reduction would save borrowers about $100 a month and $36,000 in interest over the life of the loan.

When does the new regulation come into force?

The goal is to implement these new fee adjustments as soon as possible, but the FHFA has not yet announced an official implementation date. The agency simply said, “FHFA will be working with the companies and will announce an implementation date shortly.”

The new cash-out refinancing fees, on the other hand, have an implementation date. These will be introduced on February 1, 2023.

Your next steps as a home buyer

If you want to take advantage of these cheaper loans, contact a mortgage professional in your area. You can discuss your eligibility as well as the loan program that is right for you. You may also want to sign up for FHFA news updates. They will notify you once an implementation date has been announced.

The information contained on The Mortgage Reports website is for informational purposes only and is not an advertisement for the products offered by Full Beaker. The views and opinions expressed herein are those of the author and do not reflect the policies or position of Full Beaker, its officers, parent companies or affiliates.

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TFS Financial Corporation: A Unique Shareholder-Friendly Bank (NASDAQ:TFSL) https://winwinlose.net/tfs-financial-corporation-a-unique-shareholder-friendly-bank-nasdaqtfsl/ Fri, 28 Oct 2022 21:21:00 +0000 https://winwinlose.net/tfs-financial-corporation-a-unique-shareholder-friendly-bank-nasdaqtfsl/ Pgiam/iStock via Getty Images TFS Financial Corporation (NASDAQ: TFSL) is a bank stock that we got excited about over a year ago when we gave the bank stock a Buy rating after reviewing the company’s key metrics noting the huge increases they had seen in the start-ups. We were impressed by the fact that TFS […]]]>

Pgiam/iStock via Getty Images

TFS Financial Corporation (NASDAQ: TFSL) is a bank stock that we got excited about over a year ago when we gave the bank stock a Buy rating after reviewing the company’s key metrics noting the huge increases they had seen in the start-ups. We were impressed by the fact that TFS Financial originated more loans in 2020 than any other year in company history. That was something.

However, stocks were severely devastated in 2022, and banks were wiped out for about a year. Pretty ugly charts for the sector. Now fast forward here to October 2022. We think the sector is one of the best to buy as rates rise. While there is some macro risk of a possible recession due to the US Federal Reserve’s measures to combat inflation, we firmly believe that the ability to issue higher-yielding credit will prime the financial sector for years of strength. The margins should be expanded. Dividends should have fuel to be raised. There has been some pressure on the stock and operations at TFS Financial, but the stock is now yielding over 8%. This could be a warning sign of future pain, but assuming the yield holds and the bank also operates at average efficiency, the stock is a buy here and the stock is still attractive by valuation metrics.

Headline Q4 2022 performance

In the fourth quarter, the company reported results that beat consensus estimates. Based on strong loan growth and increasing net interest income, the company reported net income of $25.4 million compared to net income of $17.1 million for the third quarter of 2022. There were strong sequential increases. Earnings per share were $0.09, up from $0.06 in the second quarter and a year ago. That’s a nice improvement, driven by a stronger loan portfolio.

loans and deposits

Keep in mind that community-focused banks are more traditional lenders. What we mean is that they depend on credit and deposit growth, borrowing at a low rate and lending at a higher rate. This is what we call the net interest spread or margin, which we monitor closely. We also like to monitor changes in non-performing loans due to value adjustments or late payments. The latter has improved greatly since the crisis began, but is crucial. The company has worked hard to expand credit in this environment.

Loans for sale totaled $14.26 billion at the end of the quarter, up 14% from $12.51 billion a year earlier. Lending has been brisk in recent months, including first mortgages and home equity lines of credit. These rose about 10% year over year to $5.8 billion.

Although lending is healthy, we always want deposits to fund these loans. As with many of the other banks we cover, deposits slipped. Deposits were down $72.6 million, down nearly 1% year over year. They were $8.92 billion at the end of the quarter, up from $8.99 billion a year ago. The decline was the result of a $169.3 million decrease in certificates of deposit and an $82.3 million decrease in money market deposit accounts. On the other hand, both checking and savings account deposits combined increased by $178.6 million. Chairman and CEO Marc A. Stefanski commented in the press release:

Our efforts have resulted in a strong quarter and year of growth during a period of interest rate volatility…our $1.7 billion in loan growth this year is the result of our aggressive pursuit of new mortgage customers and opportunities. We continue to face the challenges of the current economic situation.

So the company has been expanding the portfolio aggressively, but given the concerns in the economy, we need to be sure that the credits are of high quality.

asset quality

While credit activity is strong, there has been a notable decrease in the allowance for credit losses, but the overall credit situation has improved. Total loan defaults decreased $3.5 million to $21.2 million, or 0.15% of total loan receivables, compared to $24.7 million a year earlier.

We like that the total allowance for loan losses was $99.9 million, or just 0.70% of total loans. While there were more dollars in loan losses, the allowance last year was $89.3 million, or 0.71% of total loans.

One thing we noticed for most of the other banks we looked at is that loan loss provisions have increased for most banks. At the end of the financial year, the company actually had fewer credit risk provisions than a year ago thanks to more returns in the year. The total provision for credit losses for the full year was $1.0 million, compared to a $9.0 million loan — or so-called release of provisions — for last year. There are no provisions at the end of the fourth quarter, but we suspect that will change next year with the potential for a recession. Now with all that said, we saw an increase in profits. This was due in large part to better margins.

edges

The net interest margin improved year-on-year as new loans were originated at higher interest rates. The interest margin was 1.88% for the year, a significant increase from last year’s 1.66%. This resulted in an increase in net interest income of $35.8 million, or 15%, to $267.4 million for the fiscal year. Great job.

return metrics

Finally, we always like to look at key metrics like return on average assets and return on average equity. The higher the better for this of course. We were pleased to see the strong quarter-over-quarter improvements in these two metrics. The return on average assets rose to 0.65% from 0.46%, while the return on average equity rose to 5.53% from 3.75%. We like this improvement.

Shareholder friendly

In order to keep paying dividends at the level it pays to shareholders, the “mutual holding company” owns more than 80% of the shares. Although this has happened in the past, there is no guarantee that this will happen again in the future. But it got the waiver for this year and paid out $1.13 in dividends. At the same time, the company is buying back shares to boost profits. The company notes that “dividends, managed portfolio growth and strategic share repurchases will be the focus for future capital deployment.”

We think this is exactly the kind of focus one would want from running a company like this. It has a unique structure but is a hidden gem in our opinion. We like it here, especially as the book value has increased.

Final Thoughts on TFS Financial

Originations continue to be strong. Asset quality has improved. Interest rates improved, and that helped spur higher-margin lending. Given the recent turnaround in interest rates, we believe investors should start buying as the stock has shrunk. This stock’s dividend yield is solid.

TFS Financial Corporation works for the benefit of shareholders. The structure of the company is unique, so we encourage potential investors to understand this structure. Overall, we love local banks here, but TFS Financial Corporation is a unique and solid choice at bargain prices.

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