#refinancing

[bitchesgetriches]

Hi! First of all I want to thank you - you've been instrumental in instilling my confidence in my financial journey. Your articles are so informative and easy to follow. I really appreciate all the work you put in.

Secondly, I have a question about balance transfer credit cards. I'm in a place where I'm paying off my highest card consistently, but the interest is still killing me. Not only that, but my balance is around 60% of my limit, which is hurting my credit score. I understand that most transfer cards charge 3-5% per transfer, but if I could pay the transfer off in the given ~18 months of 0% APR (which I believe I could), it could help me significantly, even given the 3-5% hit.

Although you've instilled a lot of confidence in me, I'm not confident enough in this decision to pull the trigger without further advice. I'm always leery of opening a new card. I would greatly appreciate any wisdom you have to offer!

Thank you so much for all you do!

Hi honey! Thank you for your kind words.

And if you don't have the confidence to pull the trigger without checking in... you have our permission to do a balance transfer. The temporary 0% APR of a balance transfer credit card can give you a huge headstart on paying back the principle without drowning in interest like you are now. Even with a 3-5% transfer fee, the math will likely work out in your favor.

Here's more info on how consolidations, refinancing, and balance transfers work:

When (And How) To Try Refinancing or Consolidating Student Loans 

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[chromiakgary]

The weather turned frightful for large loans that missed the extended window of 3 - 4.6%. Although it’s always best to see the lowest possible interest when borrowing, sometimes time is the boss. It isn’t always prudent to refinance early - especially if you’re holding a loan with a prepay penalty. Making the best of a rate challenge involves looking at the long-range forecast and planning the types of deductions that create the most growth over the course of the length of your loan. Whether you’re getting a new loan or you're refinancing an existing loan, avoiding a prepay penalty may be your best move.

If you’re looking for your first commercial financing, learn from the ground up: Borrowing 101: Who Needs a Broker?

[christophe-barraud]

US 30-Year Mortgage Rates Hit A 3-Month High - Christophe Barraud

In a context where treasury yields keep spiking, US 30-year mortgage rates rebounded this week, hitting the highest level since mid-November.

[coralfestivalwitch]

The Dos and Don’ts of Refinancing: The Proper Way of Refinancing

Are you planning to refinance to switch to more competitive rates or reduce your debts? Here are some dos and don’ts so you won’t fall on some pitfalls when it comes to refinancing.

DOS

1. Speak to an expert before refinancing

Sure, money talks can be uncomfortable. Being honest to another person about your current financial situation doesn’t sound fun either. But trust us, speaking to an expert broker before refinancing can actually save you from lots of hassle in the future. They’re able to connect you with a lender that can offer more competitive rates, helping you save time and paperwork. Just be transparent to them about your goals and situation so they can look for the best solution for you.

2. Consider shorter term loans

One of the benefits of refinancing is you can choose a shorter term loan. For instance, you may choose a 10-year plan if you still have 15 years left on your 20-year mortgage. So if you have a chance and if your current situation allows, refinance to shorter term loans. This will help you save on interests plus, you can achieve a debt-free status earlier.

Read more about The Dos and Don’ts of Refinancing: The Proper Way of Refinancing Here - Fastgrow Finance

[indizombie]

In November 2016, Modi performed a high-voltage stunt: He outlawed 86% of the country’s cash, presumably to unearth illicit wealth. People queued up for days to return their worthless notes. New currency was in short supply. Small businesses couldn’t pay workers. Ultimately, demonetization was a fruitless exercise. Most of the outlawed money came back to banks, but the pain Modi inflicted on society helped launch his cult. As Arvind Subramanian, then Modi’s chief economic adviser, would argue later in a book, sacrifice, “as a necessary condition for achieving a larger, loftier objective,” resonated with the population because it harked backed to Mahatma Gandhi’s strategies during India’s freedom struggle. That elevation of Modi in the public consciousness was a turning point in the citizen-state relationship. Unquestioning devotion was in; critical examination was out. Gone was the pre-poll promise of “minimum government, maximum governance.” The dirigisme of the ’60s and ’70s was back. “We are now entering the politics of ‘permanent revolution’,” Pratap Bhanu Mehta, a political scientist and commentator, presciently warned after Modi’s currency ban. Since then, the government’s whimsical decision-making has intensified. Don’t like what a consumption survey shows? Suppress it. Getting flak for a slowing economy? Publish unbelievably rosy GDP data. Think Covid could get out of control? Impose a nationwide lockdown on four-hours notice. Before IL&FS went belly up, the overextended Indian private sector was putting up a brave face, chanting “Modi, Modi,” and trying to retain its best assets with cheap refinancing. Now the entrepreneur just wants to avoid going to jail. Economic power is concentrating in fewer hands. When I was growing up, telecommunications was a government monopoly. Then came a bustling wireless market hosting a dozen operators. Now the player count is once again down to three effectively. One of them is in serious stress, and the other says it may not be able to bid for 5G spectrum next year. Another private group is establishing a chokehold on seaports and airports, which also were once the state’s preserve. Conglomerates may also be allowed to enter banking because government-run lenders don’t have capital to grow. For my generation, swapping one form of concentration with another doesn’t look like progress.

Andy Mukherjee, ‘Why I’m Losing Hope in India’, Bloomberg

[princemannikin]

Angelica, during "Take a Break": Oh my god, have you seen yourself lately?

Hamilton: Not since my last out-of-body experience.

[furryalligator]

Rising Rates Vs. The Housing Market

Interest rates are on the rise for the first time in years. What that means for the housing market is far from obvious.

Interest rates had been falling for most of the past three decades – but two years ago, they started climbing. The yield on the 10-year Treasury note recently climbed above 3%, up from less 1.5% just a couple of years ago.

Among the reasons that rising rates matter is that they have numerous effects on the housing market. Some of these effects are obvious. As interest rates climb, so will mortgage rates, making houses relatively less affordable. Refinancing also becomes less attractive.

But there are also surprising ways in which interest rates affect – and in one case, don't affect – the housing market. Laurie Goodman of the Urban Institute walks us through them.

[hshdotcom1979-blog]

Refinancing is complicated, and especially so for people who have the temerity to be self-employed. Understand how to facilitate your mortgage refinance.