All posts tagged: Mortgages

Money Talk with Liz Weston: Managing mortgages in retirement

Money Talk with Liz Weston: Managing mortgages in retirement

Published by skeptic

Dear Liz: My husband and I are Gen Xers who are renting. We have enough cash from the sale of our last home to make a small down payment on another. If we moved to a more affordable community, we could manage the payments, but it would still be a stretch. That scenario would not have bothered me 10 years ago, but now I’m close to 50. Is it a good idea to take on a mortgage at this point? What is the best way to ensure I can afford to keep the roof over my head when I can no longer work full time? Answer: Having a mortgage in retirement used to be uncommon, but that’s no longer the case. The Joint Center for Housing Studies of Harvard University found 41% of homeowners 65 and older had a mortgage in 2022, compared with 24% in 1989. Among homeowners 80 and over, the percentage with mortgages rose from 3% to 31%. The amounts owed have skyrocketed as well. Median mortgage debt for those 65 and …

Mortgages Move Up for Homeseekers: Today’s Mortgage Rates on April 25, 2024

Mortgages Move Up for Homeseekers: Today’s Mortgage Rates on April 25, 2024

Published by skeptic

Today’s average mortgage rates Mortgage Refinance Today’s average mortgage rates on Apr. 25, 2024, compared with one week ago. We use rate data collected by Bankrate as reported by lenders across the US. Mortgage rates change every day. Experts recommend shopping around to make sure you’re getting the lowest rate. By entering your information below, you can get a custom quote from one of CNET’s partner lenders. About these rates: Like CNET, Bankrate is owned by Red Ventures. This tool features partner rates from lenders that you can use when comparing multiple mortgage rates. Mortgage rate trends Over the last few years, high inflation and the Federal Reserve’s aggressive interest rate hikes pushed up mortgage rates from their record lows around the pandemic. Since last summer, the Fed has consistently kept the federal funds rate at 5.25% to 5.5%. Though the central bank doesn’t directly set the rates for mortgages, a high federal funds rate makes borrowing more expensive, including for home loans. Mortgage rates change daily, but average rates have been moving between 6.5% …

Crippling mortgages and £16 olive oil: how much have UK prices risen in the past two years? | UK cost of living crisis

Crippling mortgages and £16 olive oil: how much have UK prices risen in the past two years? | UK cost of living crisis

Published by skeptic

Two years ago, a two-litre bottle of supermarket olive oil cost about £7. Step into your local branch today and that same bottle will set you back more than £16. Grab a packet of pasta, or some broccoli, and you will pay 95% and 50% more, respectively, than in 2022. If your car insurance renewal is due, that will be an extra 35%-50%. The Russian invasion of Ukraine almost 26 months ago set off a chain reaction that caused energy and food bills to jump, and ultimately sent inflation in the UK spiralling, reaching a peak of 11.1% in October 2022, the highest rate in 41 years. On Wednesday, the Office for National Statistics will reveal the inflation figures for March. While consumer price inflation is expected to continue to fall, following February’s 3.8% figure, shoppers (and prime ministers) may have to wait a further month to see a more substantial decrease. Even as inflation slows, it has taken a toll on our budgets. Analysis by the Observer shows British households are now spending between …

The race to interest rate cuts has begun. What’s next for mortgage prices?

The race to interest rate cuts has begun. What’s next for mortgage prices?

Published by skeptic

But as inflationary pressures have eased, the shadows cast last month are lifting and there are signs the market is now finding its feet in a higher mortgage rate environment. In fact, a recent survey from the Family Building Society found that 68% of mortgage advisers have seen demand increase in the past few months. Further falls in mortgage rates will help to boost the market further, but it’s important to remember that this increase in activity comes off a very low base. For example, mortgages for house purchases fell 29% in 2023, so there is a long way to go before we can say the market has recovered. So far this week, several lenders have already started to reduce rates, and there is hope that more will follow suit following the positive inflation data. Source link

Goldman: Office Mortgages Are Living On Borrowed Time

Goldman: Office Mortgages Are Living On Borrowed Time

Published by skeptic

At the start of the week, a lawyer specializing in advisory services for lenders and servicers of commercial mortgage-backed securities (CMBS) in the United States told us that the office segment of the commercial real estate market has been surprisingly quiet in the first quarter, despite the countless news headlines about towers being dumped on the market for hefty discounts.  The reason for this recent calm in the CRE space might be explained in a note by Vinay Viswanathan of Goldman Sachs on Tuesday. Viswanathan explained that the total amount of outstanding commercial mortgages set to mature by year-end has exploded from $658 billion at the start of last year to $929 billion in mid-March.  He said this high amount of debt that has been extended and modified rather than refinanced “helped mitigate a default wave and a sharp pick-up in losses on CRE loan portfolios.” He noted the main driver of this has been the “willingness of lenders and borrowers to modify and extend maturing loans rather than refinancing or forcing a foreclosure.” In …

Church of England accused of ‘acting like a loan shark’ over vicar’s widow falling £313,000 in debt | Mortgages

Church of England accused of ‘acting like a loan shark’ over vicar’s widow falling £313,000 in debt | Mortgages

Published by skeptic

The family of a vicar’s widow has accused the Church of England of behaving like a loan shark after a £55,000 mortgage it granted became a £313,000 debt – on top of monthly payments she has been making for almost 30 years. Tessa Norris* says her 84-year-old mother, Rose, has “devoted her life to the church, all on a voluntary basis” but that it is treating her, and others in a similar position, “as commodities to make money”. Rose and her late husband were among those who signed up for an “equity sharing” mortgage scheme offered to retiring clergy between 1983 and 2008. It enabled those who had moved from vicarage to vicarage, never owning their own property, to become homeowners in later life. But where it differed from standard home loans was that, in addition to charging the borrowers interest payments, the church was guaranteed a set percentage of the property’s value at the time when it was eventually sold. Soaring house prices over the past few decades mean that, for those retired clergy …

How to survive UK mortgage turmoil as rates go up and deals are pulled | Mortgages

How to survive UK mortgage turmoil as rates go up and deals are pulled | Mortgages

Published by skeptic

The average mortgage rate that UK homeowners are paying is set to rise steadily over the next three years, and peak at 4.2% in 2027, according to an official prediction last week. The Office for Budget Responsibility (OBR), the Treasury’s tax and spending watchdog, says this is significantly higher than the 2% figure just over two years ago. It is the latest frustrating news for homeowners, and would-be first-time buyers, following chancellor Jeremy Hunt’s budget, which offered no relief for most – there was not a single mention of the word “mortgage” in either his speech or the main budget document. The OBR forecast coincided with a string of lenders, including Barclays and HSBC, increasing rates on many new products or pulling deals. They are the latest increases as lenders say they are responding to increases in money market swap rates, which largely determine the pricing of new fixed-rate deals. David Hollingworth of L&C Mortgages says the vast majority of homeowners have got a fixed-rate deal in recent years but should be prepared. “The OBR …

Indian billionaire Shamsheer Vayalil snaps up £31 million Holland Park mansion

Indian billionaire Shamsheer Vayalil snaps up £31 million Holland Park mansion

Published by skeptic

It’s been a tough year for those trying to get on the housing ladder. Mortgage rates have been at their highest in over a decade, adding tens of thousands to the cost of a new home. But things are still peachy at the top end of the market. In one small corner of Holland Park alone, at least four eight-figure property deals were completed in the past 12 months, Spy can reveal. One of the mansions was bought by former Santander MD Juan Ball, who snapped it up for a bargain at just £24 million. He appears to be seeking to redevelop it in a partnership with architect for the super-rich, Christopher Bodker. Nearby, a stunning house was bought by Indian healthcare billionaire Shamsheer Vayalil Parambath, for a steal at £31 million. And like many Holland Park properties, the other two sites bought are owned by mysterious entities in offshore tax havens. The four combined deals were worth £120 million – or about 400 times the average UK home. According to the pre-Budget rumour mill Chancellor Jeremy Hunt took …

Why Beyoncé, Adele and more take out mortgages on million-dollar homes

Why Beyoncé, Adele and more take out mortgages on million-dollar homes

Published by skeptic

In the world of luxury real estate, it’s not uncommon to hear of celebrities opting for mortgages on their high-end properties rather than purchasing them outright. One of Hollywood’s wealthiest celebrity couples; Jay Z and Beyoncé were reported to have taken out a $52 million mortgage on their sprawling $88 million Bel Air mansion. Chrissy Teigen and John Legend have also admitted that they make payments on their California home, as well as Adele and the Kardashians, but why? It might seem counterintuitive. Celebrities, with their seemingly endless streams of income, opting for mortgages instead of simply buying their dream homes outright. However, just because someone can afford to buy a home in cash, doesn’t necessarily mean that they need to. Despite their hefty bank accounts and estimated net worth, many of the rich and famous choose to take on debt, especially when it comes to housing and here is why: 1. Liquidity is King While celebrities may have significant wealth, a large portion might be tied up in investments, businesses, or royalties. Paying cash …