Money lender – Condenetint Thu, 20 Jan 2022 11:03:24 +0000 en-US hourly 1 Money lender – Condenetint 32 32 CIVIC Financial Services quarterly mortgage production soars as mortgage industry volume slumps Thu, 20 Jan 2022 11:03:24 +0000

Our record volume is a direct result of the CIVIC team’s adaptability, commitment and unwavering resilience. I am proud to work alongside our partners and the entire CIVIC family to enable our clients to build wealth through real estate.

While originations for the entire mortgage industry declined during the fourth quarter of 2021, Civic Financial Servicesa leading private institutional lender providing financing to real estate investors, announced that its mortgage production increased nearly 60% from the fourth quarter of 2020. CIVIC’s high volume pushed the lender to the over $6 billion in lifetime creations and 15,000 total units, solidifying its position as one of the leading private lenders.

According to the Mortgage Bankers Association December Mortgage Funding Forecastone- to four-unit overall residential residential mortgages in the United States fell 30% in the last quarter of last year compared to the fourth quarter of 2020. In contrast, CIVIC reported a 60% increase in quarterly home loans, bringing its full year funding in 2021 to over 4,600 loans totaling $1.74 billion and bringing its lifetime production to over $6 billion.

“Our record volume is a direct result of the adaptability, commitment and unwavering resilience of the CIVIC team, which extends beyond our walls and into the homes of our remote working associates, including 181 people who joined us last year,” CIVIC Financial Services President William Tessar said. “I am proud to work alongside our partners and the entire CIVIC family to enable our clients to create wealth through real estate.”

Through a number of planned program initiatives, CIVIC expects continued growth in 2022 as real estate investors respond to growing demand for rental housing. The company’s initiatives include a recently launched no-point pricing option for mortgage brokers and real estate investors, which is typically hard to find.

“We are committed to bringing value to our customers,” added Tessar. “The new pricing option is the first of many exciting loan programs slated to launch in 2022, which include financing for new construction and short-term vacation rentals.”



CIVIC Financial Services, LLC is a leading institutional private lender specializing in financing non-owner occupied investment properties. CIVIC helps investors take advantage of opportunities to grow their real estate portfolios and create wealth through real estate. As a direct lender offering a range of residential and multi-family financing solutions for retail, wholesale and correspondent channels, CIVIC keeps all operations in-house so loans are handled tightly, quickly and efficiently. For more information, please visit

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Daily Mortgage Rates Rise Above 3.9% | January 18, 2022 Tue, 18 Jan 2022 13:36:13 +0000

The 30-year mortgage starts the work week with an average rate of 3.916%. That’s 0.018 percentage points higher than last week’s closing rate. All classes of fixed rate loans are higher across the board, with the rate on a 30-year refinance rising to 4.058%. On the other hand, the rates for adjustable mortgages are all lower.

Well-qualified borrowers considering buying a home or refinancing a home loan should still be able to find competitive interest rates and low monthly payments despite rising rates.

  • The last rate on a 30-year fixed rate mortgage is 3.916%.
  • The final rate on a 15-year fixed rate mortgage is 2.943%. ⇑
  • The latest rate on a 5/1 ARM is 2.409%. ⇓
  • The last rate on a 7/1 ARM is 3.769% ⇓
  • The latest rate on a 10/1 ARM is 4.001%. ⇓

Money’s daily mortgage rates reflect what a borrower with a 20% down payment and a credit score of 700 — roughly the national average score — could pay if he or she applied for a home loan right now. Each day’s rates are based on the average rate that 8,000 lenders offered applicants the previous business day. Freddie Mac weekly rates will generally be lower, as they measure the rates offered to borrowers with higher credit scores.

Today’s 30-Year Fixed Rate Mortgage Rates

  • The 30-year rate is 3.916%.
  • It’s a day infold by 0.018 percentage points.
  • It’s a month to augment by 0.393 percentage points.

Most borrowers opt for the 30-year fixed rate mortgage because they like the lower monthly payments and the predictable interest rate. In the long term, however, this type of loan tends to be more expensive than short-term loans since the interest rate tends to be higher.

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Average mortgage rates

Data based on US mortgages closed on January 14, 2022

Type of loan January 14 Last week Change
15-year fixed conventional 2.94% 2.66% 0.28%
30-year fixed conventional 3.92% 3.74% 0.18%
ARM rate 7/1 3.77% 3.39% 0.38%
ARM rate 10/1 4.0% 3.73% 0.27%

Your actual rate may vary

15 years today fixed rate mortgage rates

  • The rate over 15 years is 2.943%.
  • It’s a day infold by 0.033 percentage point.
  • It’s a month infold by 0.424 percentage points.

The lower interest rate and shorter term of a 15-year fixed rate loan is attractive to some borrowers. However, the monthly payments will be higher than an equivalent loan over 30 years and will not suit all budgets.

The latest rates of adjustable rate mortgages

  • The latest rate on a 5/1 ARM is 2.409%. ⇓
  • The latest rate on a 7/1 ARM is 3.769%. ⇓
  • The latest rate on a 10/1 ARM is 4.001%. ⇓

Another loan option is an adjustable rate mortgage. An ARM will have a low fixed interest rate for an introductory period before it becomes variable and begins to reset regularly. A 5/1 adjustable loan, for example, will have a fixed rate for five years. The rate will then reset each year. The risk with an ARM is that the rate may increase significantly once it begins to adjust.

The Latest VA, FHA, and Jumbo Loan Rates

The average rates for FHA, VA, and jumbo loans are:

  • The rate on a 30-year FHA mortgage is 3.74%. ⇑
  • The rate for a 30-year VA mortgage is 3.76%. ⇑
  • The rate for a 30-year jumbo mortgage is 3.601%. ⇑

The latest mortgage refinance rates

The average refinance rates for 30-year loans, 15-year loans and ARMs are:

  • The refinance rate on a 30-year fixed rate refinance is 4.058%. ⇑
  • The refinance rate on a 15-year fixed rate refinance is 3.067%. ⇑
  • The refinance rate on a 5/1 ARM is 2.704%. ⇓
  • The refinance rate on a 7/1 ARM is 3.912%. ⇓
  • The rollover rate on a 10/1 ARM is 4.157%. ⇓
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Average Mortgage Refinance Rates

Data based on US mortgages closed on January 14, 2022

Type of loan January 14 Last week Change
15-year fixed conventional 3.07% 2.77% 0.3%
30-year fixed conventional 4.06% 3.87% 0.19%
ARM rate 7/1 3.91% 3.89% 0.02%
ARM rate 10/1 4.16% 4.11% 0.05%

Your actual rate may vary

Where are mortgage rates going this year?

Mortgage rates have fallen through 2020. Millions of homeowners have responded to low mortgage rates by refinancing existing loans and taking out new ones. Many people bought homes they might not have been able to afford if rates were higher. In January 2021, rates briefly fell to lowest levels on record, but rose slightly for the rest of the year.

Looking ahead, experts believe that interest rates will rise further in 2022, but also modestly. Factors that could affect rates include continued economic improvement and further labor market gains. The Federal Reserve also began to scale back its purchases of mortgage-backed securities and announced plans to raise the federal funds rate three times in 2022 to combat rising inflation.

While mortgage rates are likely to rise, experts say the increase won’t happen overnight and it won’t be a dramatic jump. Rates are expected to remain near historic lows throughout the first half of the year, rising slightly later in the year. Even with rising rates, it will still be a good time to finance a new home or refinance a mortgage.

Factors that influence mortgage rates include:

  • The Federal Reserve. The Fed acted quickly when the pandemic hit the United States in March 2020. The Fed announced its intention to keep money flowing in the economy by lowering the Federal Fund short-term interest rate between 0% and 0.25%, which is also low as you go. The central bank also pledged to buy mortgage-backed securities and treasury bills, supporting the housing finance market, but began to scale back those purchases in November.
  • The 10-year Treasury bond. Mortgage rates keep pace with government 10-year Treasury bond yields. Yields first fell below 1% in March 2020 and have since risen. On average, there is typically a 1.8 point “spread” between Treasury yields and benchmark mortgage rates.
  • The wider economy. Unemployment rates and changes in gross domestic product are important indicators of the overall health of the economy. When employment and GDP growth are weak, it means the economy is weak, which can lower interest rates. Thanks to the pandemic, unemployment levels reached historic highs early last year and have yet to recover. GDP has also taken a hit, and although it has rebounded somewhat, there is still plenty of room for improvement.

Tips for getting the lowest possible mortgage rate

There is no universal mortgage rate that all borrowers receive. Qualifying for the lowest mortgage rates takes some work and will depend on both personal financial factors and market conditions.

Check your credit score and your credit report. Mistakes or other red flags can lower your credit score. Borrowers with the highest credit scores are the ones who will get the best rates, so it’s essential to check your credit report before you begin the home hunting process. Taking steps to correct mistakes will help increase your score. If you have high credit card balances, paying them off can also give you a quick boost.

Save money for a large down payment. This will lower your loan-to-value ratio, which is the share of the house price that the lender has to finance. A lower LTV usually translates to a lower mortgage rate. Lenders also like to see money that has been saved in an account for at least 60 days. It tells the lender that you have the money to finance the home purchase.

Shop around for the best rate. Don’t settle for the first interest rate a lender offers you. Check with at least three different lenders to see who offers the lowest interest rate. Also consider different types of lenders, such as credit unions and online lenders in addition to traditional banks.

As well. take the time to learn about the different types of loans. Although the 30-year fixed rate mortgage is the most common type of mortgage, consider a shorter-term loan such as a 15-year mortgage or an adjustable rate mortgage. These types of loans often come with a lower rate than a conventional 30-year mortgage. Compare the costs of all to see which best suits your needs and financial situation. Government loans — such as those backed by the Federal Housing Authority, Department of Veterans Affairs, and Department of Agriculture — may be more affordable options for those who qualify.

Finally, lock in your rate. Locking in your rate once you’ve found the right rate, the right loan product, and the right lender will help ensure that your mortgage rate doesn’t increase before the loan is closed.

Our mortgage rate methodology

Money’s Daily Mortgage Rates show the average rate offered by more than 8,000 lenders across the United States for which the most recent rates are available. Today we are posting rates for Friday, January 14, 2022. Our rates reflect what a typical borrower with a credit score of 700 might expect to pay for a home loan at this time. These rates were offered to people depositing 20% ​​deposit and include discount points.

More money :

31-year-old fails to return money to lender, stabbed | Surah News Sun, 16 Jan 2022 22:36:00 +0000 Surat: A 31-year-old man was stabbed by a loan shark after failing to return the money he had borrowed.
A case of attempted murder was registered at the Sarthaa police station after the victim’s father, Vitthal Pansuriya, filed a complaint.
Police officials informed that Ketan Pansuriya, a resident of Mahalakshmi company in Sarthana, borrowed about a year ago Rs 70,000 from his friend Bhautik Bhesaniya who is a pawnbroker. Ketan works as a diamond polisher in a local unit and lives with his family.
Vitthal said in his complaint that Bhesaniya threatened Ketan for non-repayment of the loan. On Friday evening, Bhesaniya went to Pansuriya’s house and asked Vitthal to send Ketan to meet him at the company’s main gate. After a while, a neighbor informed Vitthal that someone was beating his son.
As Vitthal rushed to the company’s main gate, he saw Bhesaniya stab Ketan and run away. Vitthal and his neighbors rushed Ketan to a nearby hospital. The doctor on duty advised that Ketan was in critical condition after being stabbed five times in the stomach.
After being informed, the Sarthana police also reached the hospital. Police have charged Bhesaniya with attempted murder and are continuing the investigation. ]]>
Citigroup results show that restructuring has its costs | Money Fri, 14 Jan 2022 23:36:57 +0000

Citigroup Inc said this week it would end its massive consumer bank in Mexico and earlier yesterday announced the sale of its retail branches in Indonesia, Malaysia, Thailand and Vietnam to the Singapore-based lender. United Overseas Bank. —Photo Reuters

NEW YORK, Jan. 15 — Citigroup Inc displayed some of the financial bruises needed for its ongoing restructuring by reporting a 26% drop in fourth-quarter profits yesterday.

The bank said results were depressed by US$1.1 billion (RM4.59 billion) in after-tax expenses for its pending divestments of consumer banking business outside the United States.

The lender ditched the last of its non-U.S. consumer businesses as part of a “strategy refresh” launched by chief executive Jane Fraser, who took the helm in March.

Operating expenses were up 18% year over year with expenses, but still up 8% for its ongoing operations.

It has also spent more in recent quarters to fix problems identified by regulators in its control systems, leading investors to wonder how much money and how long the fixes will take.

The bank said this week it would wind down its huge consumer bank in Mexico and earlier yesterday announced the sale of its retail branches in Indonesia, Malaysia, Thailand and Vietnam to Singapore-based lender United Overseas. Bank.

Fraser said the decision on the Mexican business is the last major move to come in the new strategy that will focus more closely on Citigroup’s institutional business.

She said the Mexican business is “a gem,” but for someone else.

“Our vision for Citi is to be the preeminent bank for institutions with cross-border needs,” Fraser told analysts, adding that it also aims to be a “global wealth leader, major player in payments and loans to consumers in the internal market”.

“It’s simplified, more focused,” she said.

Citigroup’s costs also rose due to a battle for talent on Wall Street that prompted global banks to offer perks like higher salaries and bonuses.

“We’ve seen some pressure on what you have to pay to attract talent,” chief financial officer Mark Mason said in a post-earnings call with reporters.

Rising costs caused the bank’s profit to drop to $3.2 billion, or $1.46 per share, in the quarter ended Dec. 31, from $4.3 billion, or $1.92 per share, a year earlier.

Lower earnings had sent the company’s shares down as much as 3.5% in early trading, but they pared losses after chief financial officer Mason confirmed the company would resume share buybacks as planned.

The stock closed down 1.2% yesterday.

Citi had suspended redemptions in the fourth quarter to build capital ahead of accusations of shutting down its Korean consumer business and the impact of a new capital rule for derivatives risk.

Excluding the blow from the Asian divestments, the bank made a profit of US$1.99 per share. Analysts on average had expected earnings of $1.38 per share, according to data from Refinitiv IBES.

Its global retail banking revenue fell 6% as Citi-branded credit cardholders in North America paid off their card balances, robbing them of interest income.

“Spending rates have increased, which is good, but we need to see that materialize into average interest-earning balances, which means payment rates need to normalize,” Mason said.

Treasury and Trade Solutions revenue, generally considered Citigroup’s strongest corporate business, fell 1% due to low interest rates.

The bank’s overall net interest income (NII) was flat year-on-year at US$10.82 billion as corporate borrowings remained flat. But the NII for the bank’s core lending activity outside the markets rose 0.6%.

Net interest margin, which measures the difference between what Citigroup pays for cash and what it earns from loans and securities, fell to 1.98% from 2.06% a year earlier.

A bright spot in the quarter was the bank’s investment banking business, which saw a 43% increase in revenue.

Total revenue increased 1% year over year to US$17 billion.

Wall Street peers JPMorgan Chase & Co and Wells Fargo & Co also reported results Friday, with earnings comfortably beating consensus estimates. —Reuters

Life insurance cashing Thu, 13 Jan 2022 11:00:40 +0000

Yes, it is possible to take out life insurance, but only with a permanent life insurance policy. To understand which policies allow a person to cash out a life insurance policy, it helps to understand the difference between two main types of life insurance:

  • Lifetime : A term life insurance policy is designed to cover a person for a specified period of time. Most often, the coverage lasts 10, 15 or 20 years. Once the term expires, the policyholder stops paying premiums and the policy expires. A policyholder who wishes to continue with life insurance coverage must extend the original policy or purchase new coverage.
  • Permanent life insurance: Permanent life insurance never expires. As long as the policyholder pays the premiums as agreed, the policy remains in force. And if the permanent policy is “whole life” or “universal life”, it can accumulate a cash value. Every time the policy owner makes a payment, the insurer takes a portion of that payment and puts it in a fund. As the fund grows, it earns interest.

There is no cash value associated with a term life insurance policy, but there may be with a permanent life insurance policy. If the insurance contract in question is a permanent contract that accumulates cash, it is possible to cash out a life insurance contract. If this sounds a bit confusing to you, stick with us. We will break it down further.

Keep in mind: It is not possible to withdraw the life insurance from the total amount of the death benefit. For example, if a person has a permanent life insurance policy with a death benefit of $ 200,000, they cannot cash out the full $ 200,000. Unless there are special circumstances (which we’ll cover later in this article), they can only cash out a life insurance policy for money accumulated over the years.

How to withdraw money from a life insurance policy

As we mentioned, if someone is hoping to cash in on a term life insurance policy, they are out of luck. However, with a permanent policy – like whole life insurance or universal life insurance – there may be money to draw on. Here are five ways to cash out a life insurance policy.

Withdraw from your policy

Depending on the amount of premiums paid by the insured, it may take years to build up enough cash to draw on. However, if someone has been paying for a few years and has a good reserve of cash, they can make a partial withdrawal from cash value life insurance. Suppose a person has $ 50,000 in cash accumulated in their account and needs $ 25,000. If they called their insurance company and asked them, “Can I take money out of my life insurance?” The answer would almost certainly be yes.

At this point, several things would happen:

  • The insurer would send the policyholder a check for $ 25,000.
  • The insurance policy would remain in force, meaning that beneficiaries would receive a death benefit if the policyholder died.
  • The amount received by beneficiaries would be $ 25,000 less than the face value (death benefit) of the policy. Thus, instead of $ 200,000, beneficiaries would receive $ 175,000.
  • According to the police, taxes may be due on the $ 25,000 withdrawn. Before cashing out any portion of a life insurance policy, it is important to ask a tax professional about the tax consequences.

Borrow from your policy

It may be possible to take out a loan from a life insurance policy. Generally, the policyholder does not have to pay taxes on the amount borrowed, but must pay interest, just as if borrowing the money from an outside lender.

A life insurance loan is not like a traditional bank loan. On the one hand, the policyholder does not have to repay the loan. The tricky point here is that they are responsible for paying interest whether or not they repay the borrowed amount. If they do not pay interest, these payments are taken from the cash value remaining in the policy. Once the cash value is used up, the insurance company may terminate the life insurance policy for non-payment.

If a policyholder withdraws money from a life insurance policy through a loan and pays it back in full, their beneficiaries will receive the full death benefit on the death of the policyholder. If they die with a balance owing, that amount (plus interest) is subtracted from the death benefit paid to beneficiaries.

Give up your policy

Let’s say a person has paid off a permanent life insurance policy for 30 years. They bought the policy because they owned a business and didn’t want to embarrass their business partner if they died. Now they’ve sold the business, have a lot of money in the bank, and don’t want to pay for a policy they don’t need. They decide to take the cash value of the insurance policy.

In exchange for withdrawing the entire cash value, they must surrender the policy to the insurance company. This means that they no longer have life insurance coverage and that no death benefit will be paid to beneficiaries upon their death. They may also have to pay a “redemption fee” and will almost certainly have to pay taxes on the amount cashed in.

Benefit from living benefits

Many permanent life insurance policies offer the option of withdrawal before death, if certain circumstances apply. For example:

  • Terminal illness: Allows an insured who is expected to live less than 12 months to cash in a life insurance policy to pay for everything from living expenses to health care.
  • Long term care: Policyholders facing the need for long-term health care can also purchase life insurance to help pay for the care they need.
  • Chronic disease: Let’s say a person can stay at home, but has an illness that prevents them from doing things like bathing, eating, or dressing. It is often possible to cash in a permanent life insurance policy to help pay for the cost of care.

If a policyholder is not sure whether a policy provides these “living benefits”, they should call the insurance company to find out. Even if a policy doesn’t cover the full cost of long-term care, it can certainly help.

Keep in mind: If the policyholder is otherwise eligible for Medicaid assistance, withhold collection of life insurance benefits until the policyholder (or their representative) has a clear Medicaid picture of the life insurance benefit. ‘impact this will have on the potential benefits.

Apply cash value to policy premiums

If an insured is struggling to pay their premiums, there may be a short-term solution. As long as the policyholder has contributed to the policy long enough to have accumulated cash, they can ask the insurer to use this accumulated cash to pay the premiums for the policy. Let’s say a person has lost their job, but wants to make sure that premiums are paid until they find a new job. Using the money they’ve accumulated to pay those premiums keeps the policy in force, so they have less to worry about.

Keep in mind: Once the cash value of the policy is exhausted, the policyholder will have to make payments again – otherwise, the insurer can cancel the life insurance policy.

Do you pay taxes on a life insurance withdrawal?

Of all the things to consider before taking money out of a life insurance policy, taxes should be at the top of the list. For an example of why, let’s return to the scenario of the person who bought a policy only because they owned a business and wanted to protect their partner’s interests in the event of death.

Let’s say this person paid $ 40,000 in premiums over the years and ended up with $ 120,000 in cash value. They give up the policy in exchange for the cash value in the account. As far as the IRS goes, $ 80,000 of this money is taxable because it represents the growth of the investment.

The smart thing to do before you take money out of a life insurance policy is how much of that money should be used to pay taxes.

When to cash in your life insurance contract?

Suppose an insured has amassed a small fortune and does not consider whether his beneficiaries will be taken care of after his death. It may be wise to surrender a policy and take the cash value at that time.

Another time a person may consider terminating their coverage is when their investment strategy has changed. Let’s say a person initially bought an indexed universal life insurance policy, because they liked it to be tied to a major stock market. Later, they decide that they prefer to use the money they put in the bonuses to make other types of investments. It is possible that cashing out their life insurance policy at this point makes financial sense.

Warning word: Selling a permanent life insurance policy to a third party is never recommended, no matter how quickly they promise money. These companies often prey on people who are desperate for money and are paying pennies on the dollar. In addition, once it has purchased a policy, the third party company receives the death benefit on the death of the policyholder, leaving the original beneficiaries aside.

Legal action pending, according to Kotak Bank Sun, 09 Jan 2022 14:15:10 +0000

After reporting that BharatPe founder Ashneer Grover sent legal advice to the Kotak Group for failing to secure Nykaa’s IPO (initial public offering), the private lender released a statement, claiming it had received the notice and responded “appropriately”.

“This notice was received by us and received an appropriate response at the time, including recording our objections to the inappropriate language used by Mr. Grover. Appropriate legal action is pending,” the statement said. Kotak Bank.

The statement said “there is no violation or violation by the Kotak group in any way.”

Audio leak of an allegedly abusive phone call between the founder of the BharatPe payments app, Ashneer Grover, and a Kotak Wealth Management employee sparked a major row, with many questioning the leader’s unethical behavior High-level fintech, from which the company has obtained a banking license. through a joint venture.

Grover, however, said the viral audio clip purporting to show him verbally assaulting a bank employee for failing to secure a stock award during Nykaa’s IPO was “false” and constituted an attempt to extortion of money.

A tweet posted Wednesday morning from an account named “@BabuBongo” read “how rich founders treat poor bank workers” and included an audio clip. The clip, lasting approximately 4:29 hours, includes an exchange between three people: two male voices and one female voice.

Grover on Thursday tweeted: “Guys. Chill. This is a fake audio of a scammer trying to extort money ($ 240,000 in bitcoin). I refused to buckle up. I have more character. . And the internet has enough con artists. “

He also shared screenshots from his email exchange last month with “Unicon Baba” who asked for $ 240,000 in Bitcoins to “handle the collection.”

Read also : Abusive audio call featuring BharatPe founder raises questions

With PTI inputs

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Is it too late to reduce your mortgage payments by refinancing? | Money Fri, 07 Jan 2022 22:30:00 +0000

STATEPOINT MEDIA – Experts say that with mortgage rates starting to rise, refinancing your home now could be your last best chance to lower your monthly mortgage payment as rates stay near all-time lows.

Those who refinanced in early 2021 have already reaped the benefits. According to a recent research report by Freddie Mac, borrowers who refinanced their 30-year fixed-rate mortgage into another 30-year fixed-rate mortgage in the first half of 2021 saved over $ 2,800 in payments. mortgage on principal and interest.

But mortgage rates are rising. Indeed, in October 2021, the 30-year fixed-rate mortgage, which is the most popular type of mortgage, reached its highest level since April, topping 3.0%. Freddie Mac predicts that mortgage rates will continue to rise, averaging 3.5% for the 30-year period set for 2022. This is up from an average of 3.0% in 2021.

So, is it time to refinance your home loan? To help you make an informed decision, Freddie Mac offers answers to frequently asked questions about the refinancing process:

• What does refinancing mean? When you refinance your mortgage, you are applying for a new mortgage to replace your current mortgage, which will result in a new rate, a new term, and a new monthly payment. The most common type of refinance is no-withdrawal refinance, in which you refinance the remaining balance of your mortgage.

• When should I consider refinancing? Generally, refinances make more financial sense when average interest rates are at least half a percentage point lower than the interest rate on your current mortgage. Another reason to consider refinancing is that your financial situation has improved, allowing you to get a shorter term loan and own your home sooner. Finally, if you currently have an adjustable rate mortgage (ARM) and it is adjusting upwards, you may want to convert it to a fixed rate mortgage that gives you the security of consistent payments.

• Is refinancing free? While refinancing your mortgage can save you money in the short and long term, it’s not free. For the most part, the fees for refinancing are similar to those you paid when you bought your home, including loan origination fees. Required services are involved, such as assessments and state and local fees which can vary widely depending on where you live. The average cost of a refinance is almost $ 5,000, so you need to think carefully about how long you plan to stay in your home to make sure the savings outweigh the costs.

• Who should manage my refinancing? You don’t need to use your current lender to refinance your loan. In fact, it is in your best interest to shop around and compare loan estimates from several lenders for the best deal and cost. It may take longer, but even a difference as small as a quarter of a percentage point can save you thousands of dollars over the life of your mortgage. The good news? Prices are often negotiable. In other words, you can ask the lenders to match the rate offered by another lender.

There might not be a time like today to lock in the lowest possible rate and receive the highest monthly savings. To get an idea of ​​what refinancing could save you, go to Freddie Mac’s refinance calculator, as well as additional resources for buying and refinancing a home, at

As with any large financial enterprise, you’ll want to do your homework, carefully consider your short and long-term goals, and work closely with your lender to perform a cost-benefit analysis.

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Vermont Credit Union Develops Islamic Law-Compliant Loan Program Wed, 05 Jan 2022 23:48:56 +0000
Imam Islam Hassan
Imam Islam Hassan said he knows families who want to buy houses but are reluctant to do so through a financing option that does not comply with Islamic law. He’s working with a Vermont credit union to create the state’s first Sharia-compliant loan program. File photo by Glenn Russell / VTDigger

A Vermont credit union is developing what would be the state’s first Islamic-compliant loan program to help more Muslim households buy homes.

Islamic law, or Sharia law, prohibits the collection and payment of interest by lenders and investors, which means that many existing loans, including mortgages, do not comply. In general, relationships that favor the lender are prohibited or considered haram.

Funding models that comply with Islamic law include arrangements where a bank purchases a property for a client and re-leases it, or where a bank and a client jointly purchase a property and agree to share the profits and losses.

Timothy Carpenter, senior director of loans at Opportunities Credit Union, which develops the framework, said the organization hasn’t worked out all the details but is looking to create a model where she and her clients share ownership of a home.

The credit union has branches in Burlington and Winooski.

Several organizations across the country offer Islamic funding, he said, but currently none in Vermont. One of these institutions is the Devon Bank in Chicago, which according to his website provides funding in accordance with Islamic law in approximately 35 states.

Carpenter said that one of the reasons that this type of funding is not yet available in Vermont is that the state does not have a large Muslim population and there is more demand in other states. He also said the products the credit union is considering would likely require special approval from Vermont officials and would not be available until at least the end of the year.

The Loan Manager worked with Imam Islam Hassan of the South Burlington-based Vermont Islamic Society on the development of the new model.

Hassan says he knows five families who want to buy houses but are reluctant to do so through a finance option that does not comply with Islamic law. And there are more Muslim Vermonters currently renting, he said, but would use such a model.

“If we had that in place,” Hassan said, “a lot of people would benefit from it. “

The Imam said that it may be permissible to take out a loan in certain situations, but in general, most Muslims would not feel comfortable with the management of interest.

Islamic finance is based on the belief that money should have no value on its own. On the contrary, money should simply be a means of exchanging products and services.

“The underlying concept is that the commodity will not be money,” Hassan said. “This will be the house.

Another organization that has seen a need for Islamic law financing in Vermont is the Burlington-based Champlain Housing Trust, said Julie Curtin, the organization’s director of homeownership.

The trust’s shared equity program allows people to buy a home with no down payment and with a reduced mortgage. But this second element, Curtin said, prevented several households from participating in the program because of their faith.

“When they learn they need to get a mortgage – the regular, traditional, interest-bearing mortgage – they end up not being able to proceed,” she said.

Curtin said the trust was also asked about purchasing one of the new condominiums it is currently building in Winooski without an interest-free loan.

Looking ahead, “we expect there will be even more interest,” she said.

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What is DeFi? Should You Get Into This Evolving Crypto Segment? Tue, 04 Jan 2022 02:34:44 +0000

Are you someone who has only ventured into cryptocurrency recently? Next, you must have come across a category of crypto tokens known as DeFi, short for decentralized finance. But what does that mean? Let’s find out.

What is DeFi?

DeFi is a broad term that includes many different features and applications. Such applications do not involve any regulator or central bank or anyone for that matter and are completely decentralized and devoid of any control by a single entity.

“Decentralized finance or DeFi means the removal of any intermediary who acts or grants permission to conduct financial activities. The existing financial ecosystem falls under the category of centralized finance, including centralized banks such as the RBI (Reserve Bank of India) which decide the inputs around the repo rate. DeFi is a peer-to-peer financial service that only operates on a Blockchain platform with few or no middlemen, ”said Gaurav Dahake, CEO and co-founder of Bitbns.

What is DeFi Based Loan?

This is a rapidly growing segment of DeFi. Normally, when you buy crypto tokens and plan to hold them for a while, those coins are of no use in the meantime. By using DeFi lending protocols, you can put your crypto holdings to get a loan. These loans are easier to obtain and more affordable than those you take out from traditional banks.

For example, when you go to a bank to apply for a loan, the bank will check your credit history, perform a KYC (know your customer) process, and then review the value of the collateral, if applicable.

On the other hand, the lender and the borrower come together on a DeFi lending platform and execute smart contracts. The borrower gives their crypto as collateral and gets a loan from the platform, while the lender gives their fiat currency to the platform to earn interest.

“With decentralization in place and no middleman involved, it becomes easier for buyers, sellers, lenders and borrowers to interact with each other rather than with a company or institution facilitating a transaction. For example, if a farmer can sell their products directly to the end user without a middleman, their margins will improve dramatically and gain new access to a new community of buyers, ”says Dahake.

DeFi-based yield farming applications

This is one of the most promising use cases for DeFi. What is happening here is that users earn tokens by locking cryptocurrencies into smart contracts executed on the exchange’s trading platforms. These types of applications save the user time and money. This protocol essentially means that a crypto holder can search for more crypto tokens using the existing tokens.

There are many different strategies for doing this type of farming, but the most popular is where a platform like Yearn.Finance systematically moves the user’s tokens between a number of research loan platforms. a higher return on a blockchain like Ethereum.

“Yield farming enables the staking of crypto assets to generate high returns or rewards in the form of additional cryptocurrency. It prompts liquidity providers to stake or lock their crypto assets into a smart contract-based liquidity pool. These incentives can be a percentage of transaction fees, lender interest, etc. These returns are expressed as a percentage of annual return, ”explains Tarusha Mittal, member of the Blockchain and Crypto Assets Council (BACC) and COO and co-founder of UniFarm.

How do DeFi-based yield farming applications work?

Yield agriculture applications work with simple logic. Users lock in their holdings of crypto tokens and earn interest on them based on pre-existing smart contracts. It is similar to crypto token staking but the difference is in the mechanism of operation.

Yield farming works using several smart contracts and liquidity providers (LPs). LPs are users who are primarily in the system to provide money or liquidity to the smart contract system in return for a reward. The rewards earned by LPs can also be reinvested in other smart contracts. The Ethereum blockchain is the most popular underlying technology for these types of applications. The rewards that LPs get are also a type of ERC-20 token. ERC-20 is the proposal identification number in the list of official protocols for Ethereum blockchain network improvement proposals.

LPs provide funds in a liquidity pool. This pool is then used to create a marketplace where users using smart contract systems simply lend, borrow, or trade their crypto tokens by paying a fee. A portion of these fees is then given (in the report of funds provided) as a reward to the LPs.

“As in any other industry, there are both advantages and disadvantages; one of those risks is impermanent loss. In this context, the price of fixed assets in a liquidity pool changes after being deposited and creates an unrealized loss. Another risk is that of DeFi mat draws where DeFi developers create a new token and pair it with a leading cryptocurrency such as Tether or Ether and set up a liquidity pool. But always remember that like any other investment, it’s important to do your own research (DYOR) to avoid any risk, ”says Mittal.

Uniswap, a DeFi-based blockchain

What is the future of DeFi?

It’s surprising to know that DeFi, a new segment of the crypto ecosystem is worth billions of dollars. As of December 30, DeFi was worth $ 96.68 billion, the DeFi Pulse stapler showed. Coinmarketcap data showed DeFi-related crypto transactions were worth $ 15.45 billion on December 30. The amount of money stuck in DeFi is determined by the “Total Value Locked” metric.

Such a large amount of money flowing into the DeFi crypto ecosystem begs the question: what is its future potential?

“DeFi is all about code. Using smart contracts, your money is programmed to perform various functions. This creates a unique opportunity for anyone with a computer and an internet connection to participate in the global economy, ”said Sumit Ghosh, Blockchain and Crypto Assets Council (BACC) member and CEO and co-founder, Chingari.

Also, the DeFi sector is currently attracting a lot of funding. Recently, DeBank, a DeFi portfolio tracker that can currently track up to 17 channels, closed a $ 25 million fundraising round, at a valuation of $ 200 million, with investors including Sequoia China.

The risks

As with any new financial technology, DeFi also comes with certain risks. “There are various risks in DeFi because it is at an early stage of infrastructure development. The first is smart contract risk: technology can have bugs and you can lose your money. The second is market risk – the assets you lock in for the loan can depreciate to market value, ”says Santosh Yellajosula, member of the Blockchain and Crypto Assets Council (BACC) and head of the ecosystem, Xfinite, an ecosystem. entertainment center built on the Algorand blockchain. .

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Business News | Stock market and stock market news | Financial news Sun, 02 Jan 2022 05:04:34 +0000

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