Surging delinquencies on auto loans accompany the recent boom in auto sales. Title loans for automobiles are also becoming increasingly popular among U.S. consumers. Securities-backed subprime auto lines have become more attractive as dealers depend increasingly on customers with poor credit to average records. As the loans soared to their highest level since 2009, they have become the only hope for many people who need a motor vehicle to work and care for their family. Sub-prime lenders charge above-average interest rates as compensation for the risk they take financing drivers with... Read more »
Should the CFPB leave payday loan customers alone?
Payday loans are short-term – and typically fairly low amount – loans that are designed to provide individuals with necessary funds in between paychecks. They are provided in the United States and are also found regularly in the UK and Canada. Though certain states provide general regulations regarding the exact interest rates that can be charged, most short term paycheck advances cost on average of $15-30/ per $100 borrowed. This equates to an annualized interest rates of 391% and up. States where these regulations are not enforced, privately owned payday loan organizations are... Read more »
Is the Federal Reserve done hiking interest rates until 2018?
The subject of interest rates and when the Federal Reserve may raise rates again has been the object of much speculation since the Fed hiked rates last December (2015) for the first time in nearly a decade. Now that the initial move towards normalizing monetary policy has taken place, investors are left wondering when the central bank could hike rates again. The reality appears to be that the next hike is much further off than markets had expected just several months ago. In fact, the next hike may not take place until January 31st, 2018. Why not until then? The reasons are numerous,... Read more »
Low mortgage rates creating a refinance boom
Low mortgage rates have defied expectations Mortgage rates have been quite low for an extended period of time, so long that both banks and consumers have been expecting them to go up for years. However, this is certainly not the case. In fact, rates have continued to drop, especially since the UK voted to leave the European Union and shook up financial markets around the world. The current record low for long-term mortgage rates in the United States is 3.31 percent, which was set in November 2012. Mortgage rates are nearly this low as we speak. They only look to be going lower, as well. What... Read more »