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☆ How to make the Fed rate cut work for you
▼ + stars: | 2024-09-18 | by ( Jeanne Sahadi | ) edition.cnn.com time to read: +11 min

In its August survey of car shoppers, a majority (64%) said a Fed rate cut likely would affect the timing of their purchase. But here’s the thing: Car loan rates are pretty high — the average is 7.1% for new cars and 11.3% for used cars, according to Edmunds. If you do buy a home this year and are considering buying down points to reduce your mortgage rate, crunch some numbers first, Diodato advised. That’s because you will pay thousands of dollars to buy down your mortgage rate now, and then thousands more in fees to refinance. What to do if you’re not near retirement: Reconsider how much money you’re keeping in cash or cash-equivalent investments.

Persons: Jerome Powell, Powell, “, ”, Greg McBride, McBride, Chris Diodato, Jessica Caldwell, ” McBride, Caldwell, We’re, Diodato, you’ll, won’t, Kathy Jones, Jones Organizations: CNN, Federal Reserve, Bankrate.com, Fed, Treasury, FDIC, Schwab Center, Financial Research, AAA, Bond Locations: Edmunds, Schwab.com

☆ What to do now that the Fed is signaling lower interest rates
▼ + stars: | 2024-07-31 | by ( Jeanne Sahadi | ) edition.cnn.com time to read: +9 min

Given the many ways lower rates can affect your finances, here are some things to consider when deciding what steps to take in response. Here’s how lower rates may affect key areas of your financial life, along with tips on what to do about it. If that proves difficult to get, see if you can transfer your balance to a credit card from a credit union or local bank that offers lower rates than the biggest banks. And because many variables determine what that factor will be, it will be hard to figure out the impact of lower interest rates. His advice: Don’t keep more than six months’ to a year’s worth of living expenses in cash or cash equivalents.

Persons: ”, Greg McBride, ” McBride, “, Chris Diodato, Diodato, you’ll, McBride, ” Dodiato, Collin Martin, don’t Organizations: New, New York CNN, Federal Reserve, Bankrate, Schwab Center, Financial Research, AAA Locations: New York, Schwab.com

☆ What to do when the Fed starts cutting interest rates
▼ + stars: | 2024-07-27 | by ( Jeanne Sahadi | ) edition.cnn.com time to read: +8 min

New York CNN —Over the past couple of years, the Federal Reserve aggressively raised its key interest rate to a 23-year high to beat down inflation. But, realistically, how much you’ll save when the Fed lowers rates will depend on how quickly it cuts and by how much each time. Since loan amounts are substantial, this is one area where even small cuts in interest rates could make a meaningful difference in what a homebuyer will pay. A couple of quarter-point rate cuts from the Fed won’t make it meaningfully cheaper, McBride said. A few rate cuts won’t make much of a dent in today’s record-high average rate of 20.7%.

Persons: ”, Greg McBride, ” McBride, “, Chris Diodato, McBride, Diodato, you’re, ” Dodiato Organizations: New, New York CNN, Federal Reserve, Bankrate, Fed Locations: New York

☆ Mortgage demand drops, as homebuyers wait for lower rates
▼ + stars: | 2024-07-24 | by ( Diana Olick | In Dianaolick | ) www.cnbc.com time to read: +2 min

Mortgage interest rates eased very slightly last week, but not enough to get today's potential homebuyers off the fence. Homebuyers are also likely waiting for interest rates to drop further. While mortgage rates don't follow the Fed exactly (they follow loosely the yield on the 10-year Treasury), rates will come down if investors believe inflation is easing. "We'd probably want to see mortgage rates come down 100 basis points, so I think if we had a five handle, even in the high fives, I think the market could see more momentum." Rates today are very slightly lower than they were last year at this time.

Persons: Joel Kan, Ivy Zelman, Kan Organizations: Mortgage, Association, Federal Reserve Locations: Hawthorn Woods , Illinois

☆ Home equity is near a record high. Tapping it may be tricky due to high interest rates
▼ + stars: | 2024-06-10 | by ( Greg Iacurci | ) www.cnbc.com time to read: +5 min

But tapping it may be tough due to high interest rates, according to financial advisors. Reverse mortgageA reverse mortgage is a way for older Americans to tap their home equity. A reverse mortgage is likely best for people who have much of their wealth tied up in their home, advisors said. A home equity conversion mortgage (HECM) is the most common type of reverse mortgage, according to the Consumer Financial Protection Bureau. watch nowA reverse mortgage is available as a lump sum, line of credit or monthly installment.

Persons: Selma Hepp, Hepp, Lee Baker, Atlanta . Baker, Kamila Elliott, Grace Cary, Elliott, Baker, Alexander Spatari, Cash Organizations: Getty, Apex Financial Services, Collective Wealth Partners, Consumer Financial, Bureau Locations: Cultura, Atlanta .

☆ A real-estate investor who built a portfolio of 30 residential units using the BRRRR method breaks down why he wouldn't recommend the strategy for new investors today — and shares his 3 top approaches
▼ + stars: | 2024-03-30 | by ( William Edwards | ) www.businessinsider.com time to read: +4 min

Adam Craig built up his real-estate portfolio over the last decade-plus using the famous BRRRR strategy — an acronym for buy, rehab, rent, refinance, and repeat. But he has stopped using the strategy for residential properties and said it isn't something he'd recommend for new investors. ATTOMAnother risk to using the BRRRR strategy is that home prices are not rising as fast as they were over the last few years. 3 approaches to use insteadInstead of the BRRRR, Craig recommended that new investors start off with one of a few easier options. This way, risk is reduced in terms of the time it will take and money it will cost.

Persons: Adam Craig, Craig, Craig doesn't, that's, doesn't, Louis Fed Organizations: Business Locations: St

☆ A real-estate investor with a 30-unit portfolio shares the exact numbers on a property he rehabbed and rented out near Cleveland — including his monthly expenses and cash flow
▼ + stars: | 2024-03-13 | by ( William Edwards | ) www.businessinsider.com time to read: +5 min

Read previewThe BRRRR method — that's buy, rehab, rent, refinance, and repeat — has been Adam Craig's bread-and-butter strategy for real-estate investing over the last decade. From $42,500 to $148,000In 2020, Craig purchased a property on the outskirts of Cleveland, Ohio for $42,500, according to a settlement statement. By this point in his investing journey, Craig had excess cash flow coming in from many other properties, which could cover his costs. This also puts first-time investors more at risk, given that they may run into unforeseen repair costs, Craig told Business Insider. "In general, if you're getting a property that's way below market that's a BRRRR property, the risks should be less because you have a lot more wiggle room," he said.

Persons: —, Adam Craig's, He's, Craig, we've, that's, it's, doesn't Organizations: Service, Business Locations: Cleveland , Ohio

☆ An ex-mortgage underwriter who owns 129 rental units worth over $28 million lists the 3 strategies he used to maximize cash from real estate and grow his portfolio, including the property types he cho
▼ + stars: | 2023-10-01 | by ( Laila Maidan | ) www.businessinsider.com time to read: +9 min

If you're considering short-term rentals, Gerbig recommends doing some market research. He also advised making sure the area has rental-friendly laws that don't restrict short-term rentals. But for the short-term rentals, he pays 20-30% of his gross revenue. Plus, the short-term rentals were requiring more time and work than he wanted to give. Investors have 45 days to identify the next purchase property and six months to close to qualify for the deferral, Gerbig said.

Persons: Chris Gerbig, Gerbig, it's, Gerbig's Locations: Nashville , Tennessee, Nashville

☆ Bank of America says this stock should benefit as student loan payments restart and borrowers refinance
▼ + stars: | 2023-09-06 | by ( Yun Li | ) www.cnbc.com time to read: +1 min

Student loan borrowers are set to restart their payments after a three-year reprieve, and Bank of America said SoFi Technologies could be a big beneficiary from an uptick in refinance activity. "We believe the uptick in deposits could also be a sign of increased student loan refinance activity," Bank of America analyst Mihir Bhatia said in a note. "SOFI should benefit from higher student loan refinances given its strong position in the student loan refi market." As a result, millions of borrowers in October will make their first student loan payment since before the Covid-19 pandemic hit. SOFI YTD mountain SoFI Bank of America said SoFi had about 60% market share in private student loan refi in recent quarters, up from 40% in the pre-pandemic era.

Persons: Mihir Bhatia, refinances, SoFi, originations, — CNBC's Michael Bloom Organizations: Bank of America, SoFi, SoFI Bank of America Locations: Tuesday's

☆ Here are Wednesday's biggest analyst calls: Nvidia, Apple, Tesla, Nio, SoFi, Amgen, Chewy, Toast and more
▼ + stars: | 2023-09-06 | by ( Michael Bloom | ) www.cnbc.com time to read: +5 min

Here are Wednesday's biggest calls on Wall Street: UBS upgrades Toast to buy from neutral UBS said the restaurant tech company "continues to prove itself as a top provider" for the restaurant industry. " UBS downgrades Block to neutral from buy UBS said it sees slowing profit growth for Square's parent company. Deutsche Bank reiterates Nio as buy Deutsche Bank said it's concerned about the company's growth trajectory but that it's sticking with its buy rating. " Deutsche Bank reiterates Tesla as buy Deutsche Bank said it's standing by its buy rating on the auto giant. Bank of America reiterates SoFi as neutral The firm said SoFi is a key beneficiary of student loan refinances.

Persons: Baird, Goldman Sachs, William Blair, Argus, Russell, CFRA, it's, TD Cowen, Cowen, Morgan Stanley, Needham, Nio, Tesla, SoFi, refinances Organizations: UBS, omni, Nvidia, Technology, HSBC, Apple, Constellation Brands, Bloom Energy, Deutsche Bank, Bank of America

Signage is seen at the Consumer Financial Protection Bureau (CFPB) headquarters in Washington, D.C., U.S., May 14, 2021. REUTERS/Andrew Kelly/File Photo Acquire Licensing RightsCompanies CURO Group Holdings Corp FollowAug 22 (Reuters) - A U.S. consumer finance regulator sued a subsidiary of fintech lender Curo Group Holdings Corp. (CURO.N) on Tuesday, alleging it pushed struggling borrowers to refinance short-term loans to keep them in debt and reap fees. Curo acquired Heights Finance for $360 million in late 2021 from private equity firm Milestone Partners. The agency said Heights Finance generated 40% of its net revenue from repeated refinances. The case is CFPB v. Heights Finance Holding Co. et al., No.

Persons: Andrew Kelly, Rohit Chopra, Curo, refi, Jody Godoy, Mark Potter Organizations: Consumer Financial Protection Bureau, Washington , D.C, REUTERS, CURO Group Holdings, Curo Group Holdings Corp, U.S, Finance Holding Co, Heights Finance, Milestone Partners, Finance, Heights Finance Holding, District of, Thomson Locations: Washington ,, U.S, Greenville , South Carolina, Texas , Oklahoma , Alabama, Georgia , Tennessee, South Carolina, District of South Carolina, New York

☆ ‘I’ve had this black cloud looming over me’: How private lenders have left millions of college students with no hope for the future
▼ + stars: | 2023-08-21 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +15 min

We both do DoorDash, and probably when those federal student loans start up, it'll be more of a necessity to do that." While private debt makes up just about 10% of the $1.7 trillion student-debt mountain in the US — about $136 billion — the industry has exploded over the past decade: the amount of outstanding private debt has jumped an estimated 47% since 2014. "Regardless, the student loan debt that was supposed to be an investment in their futures is dragging them down." To be sure, some private servicers do disclose benefits private borrowers could lose should they choose to refinance. Moran said he didn't regret taking out private student loans because it allowed him to pursue his desired nursing career.

Persons: Brianne Jones, Jones, she's, We're, it'll, Michele Shepard, they've, it's, Shepard, Suzanne Martindale, —, Anna Anderson, you've, It's, Navient, Martindale, Ryan Moran, Moran, Moran isn't, Joe Biden, I've, Anderson, forbearance, Steve Cohen, didn't Organizations: Eastern Michigan University, West, Federal Direct Loan Program, Institute for College, California's Department of Financial Protection, National Consumer Law Center, Consumer Financial, Bureau, Consumer Financial Protection Bureau, — Maryland Locations: Florida, —, California

☆ Can 'regenerative finance' clean up crypto's dirty image?
▼ + stars: | 2023-08-18 | by ( Talia Kaplan | ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailCan 'regenerative finance' clean up crypto's dirty image? CNBC Crypto World explores a growing movement called regenerative finance, or ReFi, which is focused on the intersection of climate action and web3. ReFi aims to solve systemic problems, like climate change.

Organizations: CNBC

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailBitcoin plummets to fresh two-month low amid broad crypto sell-off: CNBC Crypto WorldCNBC Crypto World features the latest news and daily trading updates from the digital currency markets and provides viewers with a look at what's ahead with high-profile interviews, explainers, and unique stories from the ever-changing crypto industry. On today's show, Crypto World explores a growing movement called regenerative finance, or ReFi, which is focused on the intersection of climate action and web3. ReFi aims to solve systemic problems, like climate change.

Persons: explainers Organizations: CNBC Crypto, CNBC

☆ Some student-loan companies are offering borrowers cheaper payments before the October restart. Making the switch could strip away a range of debt relief programs.
▼ + stars: | 2023-08-05 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +5 min

Some student-loan companies are encouraging federal borrowers to refinance before the payment restart. Companies that manage private loans have started reaching out to federal borrowers, encouraging them to refinance their federal debt to get a better deal on payments. For example, SoFi — a student-loan refinancing company — sent letters to borrowers last month with a header reading, "Federal student loan forbearance is ending soon. Consumer Financial Protection Bureau Advisor to the Director Andrea Matthews told Insider in September that "the benefits to having a federal student loan have never been more tangible. Before federal payments resume in October, borrowers can enroll in the Education Department's new SAVE Plan, which is an income-driven repayment plan intended to lower monthly payments.

Persons: Joe Biden's, It's, —, forbearance, Biden's, Earnest, refinancer, refinancers, Andrea Matthews, Tanya Burnett, Burnett Organizations: Service, Education Department, Public, Biden, Consumer Financial Locations: Wall, Silicon

At present, minimum reserves are remunerated at the ECB's deposit rate, now 3.5% after a string of interest rate hikes to tame inflation. The sources said some staff advocate leaving an adjustment of the corridor until the ECB ends its current tightening cycle, with the final move a change in the deposit rate. The ECB has given itself a year-end deadline to decide, the sources said, although details could take longer to work out. Now, the deposit rate effectively sets an interest rate floor, similar to the way U.S. Federal Reserve rates function and the sources indicated this was likely to remain the case. Such a "demand driven floor-system" would let the ECB add excess liquidity as needed as opposed to running a permanently oversized balance sheet.

Persons: Isabel Schnabel, Catherine Evans Organizations: Staff, Senior European Central Bank, Reuters, Market, ECB, Federal, Bank of England, Thomson Locations: Helsinki, SINTRA, Portugal, Sintra, Finland

☆ A Manhattan-based real estate investor who couldn't afford to buy in NYC breaks down 4 strategies for buying property if you live in a pricey city
▼ + stars: | 2023-05-07 | by ( Kathleen Elkins | ) www.businessinsider.com time to read: +8 min

Julia Lemberskiy realized pretty quickly after moving to New York City that owning a home was out of the question. Manhattan, New York is the most expensive housing market in the US, and Brooklyn and Queens, two of the other five boroughs that make up New York City, both cracked the top 15 priciest markets. She broke down four strategies for buying property if you live in a pricey market. Invest in a nearby, more affordable marketIf you live in a major city like Lemberskiy, starting small might be impossible. When Lemberskiy realized she couldn't afford to own in NYC, she started looking in upstate NY, where she eventually bought her first property.

☆ Jamie Dimon issues warning on rates: 'It will undress problems in the economy’
▼ + stars: | 2023-04-14 | by ( Hugh Son | ) www.cnbc.com time to read: +1 min

Investors and businesses should plan for interest rates to remain higher for longer than currently expected by the market, according to JPMorgan Chase CEO Jamie Dimon. The world saw what happened last month when higher rates and a sudden deposit run exposed bad management at Silicon Valley Bank. "People need to be prepared for the potential of higher rates for longer," Dimon said on the call. "If and when that happens, it will undress problems in the economy for those who are too exposed to floating rates, for those who are too exposed to refi risk," he said, referring to loans that reset at market rates. Higher rates jammed up swaths of the economy this year, from regional bankers who had bet on low rates to consumers who can no longer afford mortgages or credit card debt.

☆ Here are Tuesday's biggest analyst calls: Apple, Tesla, Dick's, Ulta, Bowlero, Carnival & more
▼ + stars: | 2023-03-28 | by ( Michael Bloom | ) www.cnbc.com time to read: +5 min

Here are Tuesday's biggest calls on Wall Street: Barclays reiterates Apple as equal weight Barclays said Apple advertising on its own apps is very underappreciated. Bank of America upgrades Paramount to buy from neutral Bank of America said the media company has a "unique collection of assets." Bank of America downgrades Fox to neutral from buy Bank of America said it sees a lack of near-term catalysts for Fox . Wells Fargo upgrades Carnival to equal weight from underweight Wells said it sees a more balanced risk/reward for the cruise operator. Morgan Stanley reiterates Dick's as overweight Morgan Stanley said shares of Dick's are undervalued. "

☆ A housing downturn is causing a reckoning in the once-hot cluster of proptech startups that let homebuyers pay all cash and win bidding wars
▼ + stars: | 2023-03-09 | by ( Alex Nicoll | ) www.businessinsider.com time to read: +9 min

In that market, all-cash offers were king to sellers because they ensured quicker, stress-free closings. According to Redfin, all-cash offers quadrupled the chances that a homebuyer would win a bidding war. Ribbon has since paused its all-cash offering, but some of the other firms that Insider featured last year are still making all-cash offers. FlyhomesFlyhomes is a real-estate brokerage that featured all-cash-offer services for years and distinguished itself in December 2021 with a free all-cash-offer product. "The value to the buyer is different than in a seller's market," Garg said in the email.

☆ 3 key things to know before opening a home equity line of credit
▼ + stars: | 2023-01-31 | by ( Sarah O'Brien | ) www.cnbc.com time to read: +4 min

Westend61HELOC use rose as cash-out refis droppedLast year, as mortgage rates climbed higher, accessing home equity by taking cash against it during refinancing — a so-called cash-out refi — became less appealing. That compares with personal loan rates of above 10%, for consumers with high credit scores, and about 20% for credit cards, according to CreditCards.com. I would not use a HELOC to buy frivolous things or things you can't afford. "I would not use a HELOC to buy frivolous things or things you can't afford," said certified financial planner David Demming, president of Demming Financial Services in Aurora, Ohio. Here are three key things to consider before signing on the dotted line.

☆ KBW's best trades for 2023, including a short bet against Coinbase
▼ + stars: | 2023-01-06 | by ( Tanaya Macheel | ) www.cnbc.com time to read: +3 min

In the meantime, KBW has shared a list of several names to trade in 2023, many of which are short bets. Perhaps the most high-profile name on the list is Coinbase – and the firm has it down as a short bet, thanks to deteriorating volumes and regulatory overhang. The firm has an underweight rating on Coinbase and a price target of $37. Its price target of $6 is 18% below its Thursday closing price. The firm's price target on Allstate is 11% above where the stock closed Thursday.

☆ Central banks around the world have now given the markets a clear message — tighter policy is here to stay
▼ + stars: | 2022-12-16 | by ( Elliot Smith | ) www.cnbc.com time to read: +3 min

A screen displays the Fed rate announcement as a trader works on the floor of the New York Stock Exchange (NYSE), November 2, 2022. Brendan McDermid | Reuterswatch nowGeorge Saravelos, head of FX research at Deutsche Bank, said the major central banks had given the markets a "clear message" that "financial conditions need to stay tight." Now that central banks have achieved this, the 2023 theme is different: preventing the market from doing the opposite," Saravelos said. "The overall message for 2023 seems clear: central banks will push back on higher risky assets until the labour market starts to turn," Saravelos concluded. Berenberg added a further 50 basis point move on March 16 to its existing anticipation of 50 basis points on Feb. 2.

☆ Mortgage Giant Rocket Plunges Back to Earth, Hit by Rising Rates
▼ + stars: | 2022-10-31 | by ( Ben Eisen | ) www.wsj.com time to read: 1 min

The mortgage industry turned from feast to famine faster than America’s largest home lender anticipated. Rocket Mortgage harnessed a generation of low rates to refinance millions of homeowners. Last year, it racked up more than double the refi volume of any other lender, accounting for more than $1 of every $10 lent out during a boom for the mortgage industry.

☆ Home prices in these 8 markets are falling the fastest as the US housing market slows down at the quickest pace ever
▼ + stars: | 2022-10-27 | by ( William Edwards | ) www.businessinsider.com time to read: +4 min

It's official: home prices in the US are in a downward trend on a national level. This is killing buyers' ability to afford higher prices. Housing affordability — when taking into account home prices, mortgage rates, and incomes — is now at one of its lowest levels in decades, according to data from the National Association of Realtors. Scott Buchta, the head of fixed income strategy at Brean Capital, also said in a memo on Wednesday that home price declines would continue, eventually falling on a year-over-year basis. Many see a so-called "Fed pivot" back to dovish policy as necessary for mortgage rates to fall.

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