Loan

5 Times a Home Equity Loan Makes Sense

If you owe less on your home than it’s worth, you have equity. With a home equity loan, you borrow against that equity and pay the loan back in equal monthly installments for a preset number of years (typically, five to 30 years). The amount you can borrow is usually capped at 80% to 85% of available equity. For example, if your home is worth $300,000 and you owe $200,000, you have $100,000 in equity. That means you may be eligible to borrow $80,000 to $85,000 in a home equity loan.

When you take out a home equity loan, your home acts as collateral, meaning a lender can repossess your house if you fail to make payments. Home equity loans can be useful, but it is crucial to consider whether you can afford one before moving forward.

Also consider how you intend to use the home equity loan. Here are five times taking out a home equity loan makes sense.

1. You can recoup the majority of what you spend

If you take out a home equity loan to pay for a home renovation, it’s essential to understand that some upgrades are strictly for your pleasure. For example, high-end light fixtures, a house full of carpeting, or a swimming pool can add a spring to your step, but are unlikely to add much value to your property when it’s time to sell. In the case of a swimming pool, it can make your property harder to sell, particularly to buyers worried about liability or who don’t want the upkeep.

When a home equity loan is used to pay for upgrades that increase your property’s value, the loan can make sense. A minor kitchen remodel costs, on average, more than $23,000, but you’ll recoup about 78% of what you spend when

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Why bankers are so worried about their small business loan books

That means that 57 per cent of people whose home loan deferrals were due to expire in September – some 22,900 borrowers owing a total of $8.7 billion – felt they were now in a position to meet their loan repayments.

As a result, the Commonwealth Bank has seen a gratifying improvement in its home loan book in the past month alone.

At the end of August, 9.8 per cent of its giant home loan portfolio (measured in terms of value) consisted of loans in deferral. By the end of September, this had dropped to 8.0 per cent. (This translates into some 93,000 home loans, with a combined value of some $37 billion.)

What’s more, October is likely to see a further steep fall in deferred home loans, with deferrals due to expire on some 52,000 home loans (worth a combined $20 billion).

If more than half of home loan borrowers are confident enough to resume repayments this month, the Commonwealth Bank should see its basket of deferred home loans shrink by another $11 billion or so.

But investors will also be keenly aware of some worrying trends lurking in the Commonwealth Bank’s latest figures.

According to the country’s largest lender, the borrowers most like to resume loan repayments have been the lower risk borrowers: the owner-occupiers, who are paying principal and interest on their home loans and whose mortgages are below 90 per cent of the value of their home.

The trouble is that pushes up the risk profile of the home loans that are still subject to deferral. According to the bank’s figures, of the home loans deferred as at the end of September, 34.1 per cent are loans for investment properties, 16.3 per cent are interest only, and 14.2 per cent have a loan to valuation ratio

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Dominic Calvert-Lewin: From non-league loan to England call-up

I never stopped believing – Calvert-Lewin on England call-up

No-one has scored more Premier League headers than Dominic Calvert-Lewin since the start of last season, but his leap to prominence is no surprise to the man who signed him for Everton.

Former Toffees defender and now academy director David Unsworth says he is still “amazed” that he managed to buy the forward from Sheffield United for a “cheeky” bid of a reported £1.5m in 2016.

He first spotted Calvert-Lewin as a 15-year-old in the gym when he was head of the Blades’ academy, and quickly realised he was “a talent who stuck out”.

“What first caught my eye was his gym work,” Unsworth tells BBC Sport. “We’d be there in the evenings and his power from a standing jump was the best I’ve ever seen. He was doing a lot of squats, and jumps at an incredible height onto these wooden boxes.

“He had a few growth issues – his legs were growing at a different rate to his body – but that was the first time I saw him and thought ‘wow, there’s an incredible athlete there’.”

Player Top speed (km/h)
Tariq Lamptey (Brighton) 36.6
Kyle Walker (Man City) 36.6
Nathan Tella (Southampton) 35.6
Oliver Burke (Sheff Utd) 35.2
Aboubakar Kamara (Fulham) 35.2
Dominic Calvert-Lewin (Everton) 35.1
Jack Grealish (Aston Villa) 35.1
Jamal Lewis (Newcastle) 35.1
Harvey Barnes (Leicester) 35.1
Kenny Tete (Fulham) 35.1

There is far more to Calvert-Lewin than his athleticism, though. He has since developed into “a complete striker”, according to Everton manager Carlo Ancelotti, who has also coached Cristiano Ronaldo at Real Madrid and Filippo Inzaghi at AC Milan.

Calvert-Lewin’s nine goals in all competitions this season have helped Everton make a perfect start to their campaign and they sit top of the Premier League

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Dividend Finance Announces New Lending Platform & Broader Suite of Loan Products

Dividend Finance Inc. (“Dividend”), a leading FinTech point-of-sale lender to solar and home improvement contractors, is announcing the launch of a new technology platform. In addition to a new solar + home improvement partner portal, Dividend is offering its solar contractors an array of new products and enhancements including:

  • Dividend Lite – a new single-page URL application which makes qualifying and signing up a customer faster and easier;

  • New solar loan terms including a 25-year 2.99% APR, 20-year 1.49% APR, 15-year 1.49% APR, and 10-year 0.99% APR*;

  • More flexible credit criteria and funding requirements; and

  • Same-day approvals and project funding

Dividend’s New Partner Portal
With solar and home improvement in one portal, Dividend is making it easier than ever for contractors to provide a fast and informative sales experience to their customers. Dividend’s new portal offers a faster credit application process, the ability for users to update and resend documents, automated change orders, and customizable pipeline functionality to better enable users to manage projects from start to finish.

“We’ve been listening to our contractor network and wanted to deliver a comprehensive overhaul in Q4 2020 with a diverse suite of loan product options, a more flexible point-of-sale experience, enhanced credit approvals, and a streamlined funding process. The residential solar industry has continued to thrive despite facing some major hurdles in 2020. We are proud to see so many of our installer partners working to find creative solutions in this challenging and rapidly-changing environment, and we will continue our efforts to deliver tools that help salespeople close more deals and business leaders run more efficient operations,” said Skyler Hopkins, Dividend’s SVP of Solar Sales.

Dividend Lite – The Single Page App
In addition to the new partner portal, Dividend has launched a single page application to provide maximum speed and flexibility

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KBRA Releases Report Assigning Rating to the Narragansett Bay Commission Bucklin Point Resiliency Improvements Project WIFIA Loan

On September 30, 2020, Kroll Bond Rating Agency (KBRA) assigned a long-term rating of AA with a Stable Outlook to the Narragansett Bay Commission Bucklin Point Resiliency Improvements Project WIFIA Loan. At the same time, KBRA affirmed the long-term rating of AA with a Stable Outlook on the Combined Sewer Overflow (CSO) Phase III Facilities WIFIA Loan.

Click here to view the report. To access ratings and relevant documents, click here.

Disclosures

Further information on key credit considerations, sensitivity analyses that consider what factors can affect these credit ratings and how they could lead to an upgrade or a downgrade, and ESG factors (where they are a key driver behind the change to the credit rating or rating outlook) can be found in the full rating report referenced above.

A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the U.S. Information Disclosure Form located here.

Information on the meaning of each rating category can be located here.

Further disclosures relating to this rating action are available in the U.S. Information Disclosure Form referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at www.kbra.com.

About KBRA

KBRA is a full-service credit rating agency registered as an NRSRO with the U.S. Securities and Exchange Commission. In addition, KBRA is designated as a designated rating organization by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized by the National Association of Insurance Commissioners as a Credit Rating Provider and is a certified Credit Rating Agency

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