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☆ A Yale economist says a risky type of mortgage that contributed to the 2008 crash could save you money in the long run — if you can stomach uncertainty
▼ + stars: | 2022-11-02 | by ( Jacob Zinkula | Alcynna Lloyd | ) www.businessinsider.com time to read: +6 min

Most Americans have a fixed rate mortgage, meaning their interest rate stays steady over time. A Yale economist says adjustable rate mortgages can help borrowers save money on interest in the long run. They're less predictable than fixed-mortgages, but are attractive due to their potential to take advantage of times when interest rates are low. "For most people, the adjustable rate mortgage is preferable unless the fixed rate mortgage rate is at a historic low or if you're really stretching your budget to buy your home," Choi said. Ultimately, even if the long-term odds are in the borrower's favor, an adjustable rate mortgage carries its risks.

☆ Education Department overhauls federal student loan system, aiming to make it 'simpler, fairer and more accountable'
▼ + stars: | 2022-10-31 | by ( Annie Nova | ) www.cnbc.com time to read: +2 min

The U.S. Department of Education announced on Monday sweeping new changes to the federal student loan system, including additional consumer protections for borrowers and limits on the amount of interest that can accrue on the debt. "Today is a monumental step forward in the Biden-Harris team's efforts to fix a broken student loan system and build one that's simpler, fairer, and more accountable to borrowers," said U.S. Secretary of Education Miguel Cardona, in a statement. The Biden administration will also curb the practice of interest capitalization — in which unpaid interest is added to the borrower's principal. The Public Service Loan Forgiveness Program, which allows public servants and those who work for certain nonprofits to get their debt canceled after a decade, will also get an overhaul. Months that previously didn't qualify toward a borrowers' debt relief, including those when they were in a economic hardship deferment, will be counted.

☆ Meet a 30-year-old with $110,000 in student debt who chose her job in hopes of public-service loan forgiveness — but her balance just keeps growing
▼ + stars: | 2022-10-30 | by ( Juliana Kaplan | Ayelet Sheffey | ) www.businessinsider.com time to read: +7 min

Kjerstin Laine, 30, owes over $110,000 in student debt from undergraduate and graduate programs. But interest means she's barely paid it off, and Biden's forgiveness is just a drop in the bucket. For Laine, a 30-year-old who has over $110,000 in student debt, the $20,000 in forgiveness she's set to get from President Joe Biden's plan is just a drop in the bucket. Her situation points to the larger structural issues underpinning the student debt crisis, where first-generation and lower-income students take on huge debt burdens to get ahead and up their earnings but still find themselves buried under ever-growing balances. The company that manages the entire Public Service Loan Forgiveness portfolio — MOHELA — isn't making matters any easier.

☆ A court just ruled that CFPB's funding is unconstitutional, and that could be 'catastrophic' for mortgage markets
▼ + stars: | 2022-10-28 | by ( Stephanie Dhue | ) www.cnbc.com time to read: +6 min

Mortgage rules at riskIf the agency's legal authority is undermined, it could have a profound affect on home lending markets — an industry that's prone to disruption when laws are murky, especially as interest rates rise. That extended the potential damages to the Wall Street banks as well as mortgage investors Fannie Mae and Freddie Mac. Appeal likelyIf the Fifth Circuit decision is upheld, it could call into question those long-standing mortgage rules. "The loss of the CFPB mortgage regulations and the effect on the market would catastrophic," said Andreano. "Potential changes in how the CFPB are funded aren't likely to have an immediate effect on the mortgage market."

☆ Biden's Education Department just announced permanent steps to bring student-loan borrowers in targeted forgiveness programs closer to debt relief
▼ + stars: | 2022-10-25 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +5 min

The Education Department announced permanent fixes to the Public Service Loan Forgiveness program. This comes just days before the PSLF waiver expires on October 31 and isn't being extended. Nearly one year ago, the Education Department announced reforms to the Public Service Loan Forgiveness (PSLF) program, which is intended to forgive student debt for government and nonprofit workers after ten years of qualifying payments. "Today, we're encouraging public service workers to take advantage of the program's temporary changes before the deadline on October 31," Education Secretary Miguel Cardona said in a statement. Although the PSLF waiver is soon expiring, the account adjustment will give borrowers one more chance to get their payment counts corrected.

☆ Justice Amy Coney Barrett rejected a bid to block Biden's student-loan forgiveness program
▼ + stars: | 2022-10-20 | by ( Oma Seddiq | Ayelet Sheffey | ) www.businessinsider.com time to read: +2 min

Justice Barrett dismissed a bid to block Biden's student-loan forgiveness program. A taxpayers group in Wisconsin filed the emergency request at the Supreme Court on Wednesday. Barrett, who handles emergency requests out of Wisconsin, rejected the group's bid. The request was widely considered a long-shot given that lower courts had already dismissed the group's challenges to Biden's program, ruling that they lacked legal standing. As the appeals process was still playing out, the taxpayers group escalated its bid to the Supreme Court, which ultimately failed.

To build credit from scratch, try applying for a secured credit card or credit-builder loan, or ask to be added as an authorized user on someone else's credit card. And having no credit can make it more difficult to get approved for a mortgage, auto loan, personal loan, credit card, or any other type of credit. How to get a loan with no creditIf you're looking to get a loan without a credit history, here are five strategies worth considering. If you plan to repay the money quickly, a 401(k) loan could be a far more favorable borrowing choice than a payday loan, title loan, or pawn shop loan. Insider's Featured Secured Credit Cards Capital One Platinum Secured Credit CardDiscover it® Secured Credit CardCapital One Quicksilver Secured Cash Rewards Credit Card Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options.

☆ Irish central bank eases mortgage-lending limits
▼ + stars: | 2022-10-19 | by ( Conor Humphries | ) www.reuters.com time to read: +1 min

DUBLIN, Oct 19 (Reuters) - Ireland's central bank is to ease mortgage-lending limits to allow first-time property buyers to borrow up to four times their income, it said on Wednesday following a review of lending rules designed to prevent a lending bubble. Currently lenders can only offer loans up to 3.5 times the income of first-time buyers. That is set to rise to four times from January, the bank said. The 3.5 times limit will remain for other buyers. The bank also raised the loan-to-value limit for those buying for the second time to 90% from 80%, putting them in line with current limits for first-time buyers.

☆ A conservative group just asked the Supreme Court to block Biden's student-loan forgiveness, saying it is 'critical' the relief is halted this week
▼ + stars: | 2022-10-19 | by ( Ayelet Sheffey | Oma Seddiq | ) www.businessinsider.com time to read: +5 min

A Wisconsin conservative group is asking SCOTUS to block Biden's student-debt relief. The group argued that the loan forgiveness has an "improper racial motive" and is unconstitutional. It said Biden exceeded his constitutional power by enacting the loan relief without congressional approval. While that decision is being appealed, the group is now escalating the issue to the Supreme Court in an effort to block Biden's plan from taking effect. The HEROES Act has been widely debated even before Biden announced debt relief.

☆ The student debt forgiveness application is live online: Here's how to apply
▼ + stars: | 2022-10-17 | by ( Kamaron Mcnair | ) www.cnbc.com time to read: +2 min

U.S. President Joe Biden speaks about student loan debt at the White House on Aug. 24, 2022 in Washington, DC. Following a successful beta test over the weekend, President Joe Biden announced on Monday the student debt forgiveness application is now live. You can visit the Federal Student Aid website to apply for up to $20,000 of student debt relief. What do I need to apply for student loan forgiveness? When is the deadline to apply for loan forgiveness?

☆ The student-loan forgiveness application is officially live, and your debt relief is now being processed
▼ + stars: | 2022-10-17 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +3 min

Biden officially launched the application site for student-loan forgiveness on Monday. On Monday, Biden announced that the site to apply for student-loan forgiveness is officially live, following a beta test of the website conducted over the weekend. These are the federal loans that are eligible for relief, per the department:Undergraduate loansGraduate loansSpousal loansAnd parent PLUS and grad PLUS loans. The department recommends borrowers apply before mid-November to get the relief into their accounts before payments resume early next year, and student-loan companies will notify borrowers once the relief is processed. During his remarks, Biden maintained he has the legal standing to enact this broad debt relief and he called Republican pushback "wrong and hypocritical" during his remarks.

☆ Education Department launches beta website for student loan forgiveness applications
▼ + stars: | 2022-10-15 | by ( Zoë Richards | Https | Media-Cldnry.S-Nbcnews.Com Image Upload Newscms Shannon-Pettypiece-Circle-Byline-Template.Jpg | ) www.nbcnews.com time to read: +3 min

The Department of Education launched a beta test of its website Friday allowing federal student loan borrowers to begin submitting applications for some debt relief. Applications won't be processed until the site officially launches later this month, but borrowers who submit an application during the beta testing period will not need to reapply, an Education Department spokesperson said. Biden announced his student debt relief plan in August. NBC News has reached out to the Education Department for comment. The Education Department previously said that applications would available in early October.

☆ How Freddie Mac is helping renters use their on-time rent payments to build credit and achieve homeownership
▼ + stars: | 2022-10-12 | by ( Sponsor Post | Created Insider Studios With Freddie Mac | ) www.businessinsider.com time to read: +6 min

In this challenging economic environment, Freddie Mac has implemented two new initiatives that can help strengthen renters' ability to build credit and achieve homeownership using their history of on-time rent payments. Yet, unlike homeowners who make regular mortgage payments, renters generally do not see their on-time rent payments reflected in their credit scores. Worse yet, the most common way rent payments impact credit scores are when missed rental payments go into collection. After enrollment, the renter's on-time rent payments are reported to the credit bureaus each month. Since Freddie Mac began this initiative last year, 86,000 households across more than 900 multifamily properties have enrolled.

☆ The average student loan borrower will see their monthly bill drop by up to $300 a month when payments restart, says the Education Department
▼ + stars: | 2022-09-27 | by ( Juliana Kaplan | ) www.businessinsider.com time to read: +3 min

President Biden is forgiving up to $20,000 in student loans for federal borrowers making under $125,000. A Department of Education official said borrowers who see relief, monthly payments will shrink. That means, according to Powell, monthly payments will be recalculated based on a borrower's remaining balance. "We estimate the average borrower on a standard repayment plan will see their monthly payments drop by around $200 to $300 a month," Powell said. As part of the president's debt cancelation, student loan payments were paused for "one final time" through the end of 2022.

☆ A conservative group is suing to block Biden's student debt forgiveness, but it faces legal hurdles
▼ + stars: | 2022-09-27 | by ( Juliana Kaplan | ) www.businessinsider.com time to read: +4 min

The Pacific Legal Foundation announced Tuesday it was filing suit against student loan relief. "Congress did not authorize the executive branch to unilaterally cancel student debt," Caleb Kruckenberg, an attorney at Pacific Legal Foundation, said in a press release. The nonpartisan Congressional Budget Office has estimated that, according to projections spanning the next 30 years, student loan relief will cost $400 billion. "The claim is baseless for a simple reason: No one will be forced to get debt relief. Because opponents of the debt relief plan are trying anything they can to stop this program that will provide needed relief to working families."

Since January, the average 30-year fixed mortgage rate has increased by over three percentage points, according to Freddie Mac. See more mortgage rates on Zillow Real Estate on ZillowMortgage calculatorUse our free mortgage calculator to see how today's mortgage rates will affect your monthly and long-term payments. Mortgage rates started ticking up from historic lows in the second half of 2021 and have increased significantly so far in 2022. Inflation remains elevated, but has started to slow, which is a good sign for mortgage rates and the broader economy. What is a good mortgage rate?

However, closing a student-loan account after loan forgiveness may ding your credit score initially. What does student-loan forgiveness mean for your credit score? Additionally, your credit mix accounts for 10% of your credit score and is made up of both revolving and installment credit. Your payment history makes up a significant percentage of your credit score, and lenders prefer to see consistent and reliable past payments. The bottom lineWhile some borrowers may see their credit score take a short-term hit after student-loan forgiveness, the financial benefits far outweigh any negative impact.

Persons: Biden, —, Biden's, Chris Ebeling, Ebeling, you've, Gabe Krajicek, Kasasa Organizations: Service, Pell, Federal, Citizens Bank

☆ Student loan payments are set to resume in September — should you pay now or wait for loan forgiveness?
▼ + stars: | 2022-08-04 | by ( Jordan Hart | ) www.businessinsider.com time to read: +4 min

Borrowers who can afford to pay say it's a 'big deal' to chip away at their principal loan balance. But it's unclear what the government's next steps will be on loan debt and time is running out for students. "One recent study shows that student loan borrowers were more likely to have taken out a first mortgage while payments have been frozen compared with those who have no student loans," Leondis wrote. With the current interest rate at zero, student loan repayments would go directly toward the borrower's principal balance. One Tiktoker who typically posts about student loan forgiveness has advised viewers to "pay attention to communication from (their) loan servicer" in the coming weeks.

☆ Investing in peer-to-peer loans makes this investor $2,200 a month in interest. Here's how he set up this easy passive income stream.
▼ + stars: | 2022-07-18 | by ( Leo Ginsburg | Nathan Rennolds | Business Insider Deutschland | ) www.businessinsider.com time to read: +5 min

Lars Wrobbel makes 2,200 euros a month in passive income by investing in peer-to-peer loans. Peer-to-peer investing involves making loans with high interest rates to private individuals. Wrobbel said that because of this risk, it's important peer-to-peer loans are only part of your investing portfolio. Peer-to-peer loans account for about 17% of Wrobbel's, he said, adding that he wouldn't let that figure go past 20%. When starting out, Wrobbel said putting 5 to 10% of your investments in peer-to-peer loans would be a good amount.

Call to Select readers: Have you found a mistake on your credit report that's affected your credit score or not been able to get a credit card or secure a loan because of a poor credit score? What it means to have a credit score of 800A credit score of 800 means you have an exceptional credit score, according to Experian. According to a report by FICO, only 23% of the scorable population has a credit score of 800 or above. That said, you don't necessarily need to have a perfect credit score in order to get favorable terms on loans or low APRs on credit cards, as only a very small percentage of people have a perfect credit score. In other words, having a credit score of 800 puts you within the top credit score range and will help you qualify for the best terms, whether it's for a mortgage or a personal loan.

Below, CNBC Select rounded up four of the best personal loan lenders that still accept applicants who have credit scores of 580 or lower. According to Upstart's website, applicants with a credit history should apply with a minimum credit score of 300 (though, Upstart also accepts applicants with no credit history). Sometimes, a potential borrower may have a low credit score because they have extremely limited credit activity. Other times, a lack of credit history may result in them having no credit score at all. OneMain Financial generally accepts applicants with at least a poor or fair credit score (the exact credit score minimum is not disclosed but for reference, a poor credit score is considered to be between 300 and 579 and a fair credit score is considered to be between 580 and 669).

But it can make more sense to file separately in a few cases, such as when you have excessive medical expenses. For married couples, choosing to file taxes jointly or separately can have a significant impact on the amount of income tax owed. Still, there are special circumstances where it makes sense to file separately. If you got married on or before December 31, you're considered married for the entire year for tax purposes. Filing separately would allow both spouses to begin deducting qualified medical expenses after they exceed 7.5% of their own AGI.

Below, CNBC Select rounded up five of the best personal loan lenders that still accept applicants who have credit scores below 670. Sometimes, a potential borrower may have a low credit score because they have extremely limited credit activity. Other times, a lack of credit history may result in them having no credit score at all. Many personal loan lenders offer amounts starting around $3,000 to $5,000, but with Upgrade, you can apply for as little as $1,000 (and as much as $50,000). Common personal loan definitions you should knowHere are some common personal loan terms you need to know before applying for one.

There are many things you can use a personal loan for, including a wedding, a funeral, a home renovation, debt consolidation or a big emergency. Just like with any other form of credit, personal loan lenders will typically want to measure the creditworthiness of applicants by looking at their credit scores and credit history. Fortunately, though, some personal loan lenders can still consider such applicants. CNBC Select rounded up some personal loan lenders that may still approve applicants who don't have a sufficient enough credit history to generate a credit score. While SoFi generally accepts good or excellent credit for its personal loan products, borrowers can apply for a loan using a co-applicant.

Fannie Mae will now consider rent payment history when approving borrowers for mortgages. You may also use a rent reporting service to make sure your rent payments count toward your credit score. Missing a credit card payment can negatively impact your credit score, but an on-time rent payment usually goes unreported. Rent reporting services can raise your credit score and give you credit history without opening a loan or a credit card. Make sure to check that box to instantly boost your credit score and record your on-time rent payment.

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