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Apache is functioning normally

Apache is functioning normally

Robo-advisors are becoming increasingly popular, giving everyday people a more cost-effective way to invest at all levels.

Rather than pouring over investment books and blogs, you can choose a robo-advisor that fits with your general risk philosophy, then pay a small percentage of whatever funds you’re able to invest.

You presumably get the returns without having to worry about the daily maintenance of your investments.

FutureAdvisor: Personalized Investment Advice

FutureAdvisor is a relatively new standout in the industry, offering personalized investment advice to help you reach your financial goals. And while touted as a robo-advisor, FutureAdvisor has a real-life team of human investors helping to manage client portfolios. Their investment strategy focuses on the long-term and is based on academic research and historical performance.

This is also a great choice for those who are wary of fintech startups because all FutureAdvisor accounts are held through Fidelity. You get the security of major financial institutions with the technology of a data-driven startup.

You can also take advantage of certain free services with FutureAdvisor. Keep reading to find out more about how you can invest with FutureAdvisor.

How FutureAdvisor Works

To get started with FutureAdvisor, you’ll need at least $10,000 to invest. Right off the bat that can be limiting to some, but they do collectively manage over $900 million at this point. Once you’re ready to start, you can get a free portfolio analysis.

You can link all of your accounts to FutureAdvisor, which then reviews all of your information. Additionally, you’ll add in your financial goals along with your target timeframe. From there, you’ll receive customized recommendations based on modern portfolio theory.

It’s a comprehensive way to figure out how to stay on track throughout your financial journey, especially since it’s looking at all of your actual information. Once you’ve taken advantage of this free service, you can then choose to sign up to have your funds managed through a FutureAdvisor Premium account. This will give you access to a team of financial advisors.

Supported Investments

Investments they support include IRAs (traditional, Roth, and SEP) as well as individual and joint taxable accounts. There are only two basic requirements: you must start with at least $10,000 and you have to be between 18 and 68 years old.

This is another place where things differ from your typical robo-advisor. You keep your money with a major brokerage, like Fidelity. FutureAdvisor then manages your funds as a fiduciary.

Tracking Retirement Savings

Want to track your retirement savings?

Log onto your FutureAdvisor dashboard any time of the day to view your total assets. You’ll be able to see exactly how your assets are being managed, which is based on various factors, including:

  • Your age
  • Risk tolerance
  • Portfolio size and holdings
  • How long you have until retirement

You’ll also receive your “best path” to retirement, along with suggested steps and best practices you can take to optimize your investments.

FutureAdvisor Fees

There are three parts to FutureAdvisor’s fee structure. The first is an annual management fee of 0.50%, which is charged in increments on a quarterly basis. The management fee is charged on the number of assets that FutureAdvisor actually manages.

The next fee is the expense ratio for any funds you’re invested in, like ETFs. ETF expense ratios average around 0.15%. Finally, you’ll be charged a commission anytime a trade is made. It may seem like a lot, but FutureAdvisor manages your investments based on the size of your portfolio. Additionally, FutureAdvisor uses several fee-free funds to save you money.

In total, most accounts average an annual fee of 0.65% on the assets you have managed by FutureAdvisor.

When you’re getting started, you won’t be charged anything if your accounts are already held by Fidelity. It’s also free to transfer accounts from Vanguard. However, most other brokerages and mutual fund companies will charge a transfer fee, ranging between $50 and $100 per account.

It’s also worth noting that there are no fees to cancel your account with them. Since your money is held in a Fidelity account, they simply take themselves off as the account manager and you have control to do whatever you want with the funds. Fees may apply if you want to close your account with Fidelity.

Special Features

Whether you just want some free retirement advice or a Premium account to grow your investments, FutureAdvisor has plenty to offer investors of all types. Even if you don’t meet the $10,000 minimum balance, there are services you can take advantage of. And if you do decide to have FutureAdvisor manage your accounts, you’ll be happy to know about some of their best features.

Free Advice

We already talked about the free portfolio analysis you can receive from FutureAdvisor, which is a great perk in itself. However, even if you don’t want to sign up for an account and upload your investment information, there are still tons of amazing resources you can take advantage of.

Are you totally new to retirement planning and investing?

FutureAdvisor’s Investing Library

Navigate over to FutureAdvisor’s Investing Library and you’ll find countless guides and articles. If you’re not sure where to begin, pick an overview topic like “How to Start Investing.” There are also guides on how to invest different amounts, like $10,000 or even $500,000 — so no matter what you have, you receive holistic advice about how to effectively manage your savings.

There are also really specific topics, so if you’re looking for a particular how-to guide about something investment-related, you’re likely to find it here. For example, you can read step-by-step on how to open an IRA or dive deeper into the best ways to diversify your portfolio.

FutureAdvisor also has a section of its website devoted to reaching your goals. In addition to direct investment advice, they also talk about things like the cost of housing and healthcare — both of which are extremely relevant in retirement planning. On top of that, they offer 401(k) and529 college savings plan assistance.

FutureAdvisor’s Algorithm

Interested in how FutureAdvisor determines its investment strategy?

Check out “Inside the Algorithm,” which is loaded with super-specific articles on their automatic rebalancing strategy, tax-efficiency tactics, stock and bond splits, and more. Again, you don’t even have to create a free account to take advantage of this resource library.

It’s completely available to anyone, and it’s smart to look at before you choose FutureAdvisor for your investments. And the blog is updated regularly so you always know about the company’s latest updates.

Tax-efficient Strategies

FutureAdvisor utilizes a few different strategies to minimize your tax liability. Like most robo-advisors, they’ve integrated automatic tax-loss harvesting to all accounts. It’s particularly helpful, however, if you’re in a higher tax bracket.

So what exactly is tax-loss harvesting?

The process can be quite technical, but basically, tax-loss harvesting involves selling a security that’s had a loss. It’s then replaced with a similar position so that your portfolio is right where it should be. But since you sold the original security at a loss, that amount is used to offset your taxes on both your income and capital gains.

Of course, there are all kinds of rules regulating tax-loss harvesting, which is why it’s helpful to have an automated expert like FutureAdvisor monitoring and executing the process for you.

FutureAdvisor also engages in other tax-efficient strategies. When charging your annual fee, they take this money out of your taxable accounts like a traditional IRA, rather than out of a tax-advantaged account, like a rollover IRA. Over time, that can save you money on the amount of taxable income you have.

Capital Gains and Tax Policy

The company adheres to its own Capital Gains and Tax Policy to help clients save as much as possible on their tax burden. In fact, when you sign up for investment management with FutureAdvisor’s Premium service, you can actually see what your projected tax impact will be before they rebalance your portfolio.

Plus, they continually review your short-term and long-term holdings to best balance your portfolio on a regular basis. Just as they do with all their decisions, FutureAdvisor consistently rebalances your portfolio based on your specific situation.

You can expect your portfolio to be rebalanced between four and six times each year. This is the average amount it takes to maintain your target asset allocation to make sure your investments are staying on track.

Fidelity Integration

Unlike most other robo-advisors, FutureAdvisor doesn’t actually hold your money. Instead, they’ve carved out an agreement with Fidelity. They serve as custodian of your investment accounts, but the money is still held by one of two national brokerages.

The great thing about this is that both options are SIPC insured. While that doesn’t protect your investments against market losses, it does offer certain protections if the brokerage closes for some reason.

Fee-Free ETFs

Working with Fidelity also means that FutureAdvisor can help you save money by using fee-free or low-cost ETFs.

Fidelity is just shy of that with 91 fee-free ETFs to choose from. Since you pay both an annual management fee and trade commissions with FutureAdvisor, this can really help you save money while optimizing your portfolio.

The partnership between FutureAdvisor and these two brokerages also gives you flexibility. If you change your mind and don’t want to pay for the Premium service anymore, you simply remove FutureAdvisor as the account custodian. Then you still have your money invested in Fidelity and you don’t have to worry about paying any transfer fees or closing fees.

Is FutureAdvisor right for you?

People who currently have investment accounts with Fidelity are automatic candidates for FutureAdvisor, especially if you’ve been considering using a robo-advisor.

If your funds are already housed within one of these two brokerages, it’s extremely simple to get started. And if you decide you don’t like how your funds are managed, you simply remove FutureAdvisor as your custodian and move on — without paying any fees.

Give FutureAdvisor a Test Drive

Really, anyone can test drive FutureAdvisor by signing up for the free analysis and recommendations. You’ll even get reminders about how and when to rebalance your portfolio, you’ll just have to manually do it yourself. Once you’re comfortable with how your investments look, you may decide to sign up for the Premium account so you can invest on autopilot.

Even with these perks, FutureAdvisor’s fees are a bit higher compared to those of other robo-advisors. If cost is your bottom line, you may want to explore other options. But the upside is that your funds are actually kept with extremely reputable brokerages, making FutureAdvisor an interesting hybrid between a traditional financial advisor and fintechs.

Ultimately, your investments should be based on your personal values and strategies. If these align with FutureAdvisor, it’s definitely worth giving them a try, especially if you start with a free account.

Source: crediful.com

Apache is functioning normally

Apache is functioning normally

Published 3:54 a.m. ET Sep. 8, 2023

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Editorial Note: Blueprint may earn a commission from affiliate partner links featured here on our site. This commission does not influence our editors’ opinions or evaluations. Please view our full advertiser disclosure policy.

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The average rate on a 30-year fixed mortgage is 7.65%, and on a 15-year fixed-rate mortgage, it’s 6.82%. The average rate on a 30-year jumbo mortgage is 7.44%.

*Data accurate as of September 7, 2023, the latest data available.

30-year fixed mortgage rates

The average mortgage rate for 30-year fixed loans rose today to 7.65% from 7.53% last week, according to data from Curinos. This is up from last month’s 7.47% and up from a year ago when it was 5.47%.

At the current 30-year fixed rate, you’ll pay about $710 each month for every $100,000 you borrow — up from about $701 last week.

Ready to buy? Compare the best mortgage lenders

15-year fixed mortgage rates

The mortgage rates for 15-year fixed loans inched up today to 6.82% from 6.76% last week. Today’s rate is up from last month’s 6.78% and up from a year ago when it was 4.82%.

At the current 15-year fixed rate, you’ll pay about $889 each month for every $100,000 you borrow, up from about $885 last week.

30-year jumbo mortgage rates

The mortgage rates for 30-year jumbo loans rose today to 7.44% from 7.34% last week. This is up from last month’s 7.25% and up from 5.02% last year.

At the current 30-year jumbo rate, you’ll pay around $695 each month for every $100,000 you borrow, up from about $689 last week.

Methodology

To determine average mortgage rates, Curinos uses a standardized set of parameters. For conventional mortgages, the calculations are based on an owner-occupied, one-unit property with a loan amount of $350,000. For jumbo mortgages, the loan amount is $750,000. These calculations assume an 80% loan-to-value ratio, a credit score of 740 or higher and a 60-day lock period.

Frequently asked questions (FAQs)

Mortgage rates are determined by a variety of factors, including the overall economy, inflation and the actions of the Federal Reserve. Mortgage lenders then set their loan rates based on these economic elements.

The rate you’re offered on a mortgage will also depend not only on the lender but also on your credit score, income, debt-to-income (DTI) ratio and other parts of your financial profile.

If you opt for a rate lock, you can typically do so for 30 to 60 days, depending on the lender. In some cases, you might be able to lock in your rate for up to 120 days.

Keep in mind that while some lenders allow you to lock in a mortgage rate for free, you’ll likely have to pay a fee for a longer lock period. This fee generally ranges from 0.25% to 0.5% of your loan amount. You could also be charged a fee if you want to extend the lock period — usually 0.375% of the loan amount.

There are several strategies that could help you qualify for the best mortgage rate, such as:

  • Checking your credit: When you apply for a mortgage, the lender will review your credit to determine your creditworthiness as well as your interest rate. In general, the higher your credit score, the lower your rate will be. So before you apply, it’s a good idea to check your credit to see where you stand. If you find any errors in your credit report, dispute them with the appropriate credit bureau to potentially boost your score.
  • Comparing lenders: Taking the time to shop around and compare your options from as many lenders as possible can help you find the best deal. In addition to rates, make sure to also consider each lender’s terms, fees and eligibility requirements.
  • Improving your credit score: If you have less-than-perfect credit and can wait to apply for a mortgage, it could be worth working to improve your credit beforehand to qualify for better rates in the future. Some possible ways to boost your credit include paying all of your bills on time and aiming to keep your credit utilization (the amount of credit you’ve used compared to your credit limits) on credit cards and lines of credit at 30% or less.
  • Reducing debt: Paying down debt could help lower your DTI ratio, which is how much you owe in monthly debt payments compared to your income. Having a lower DTI ratio can make you look like less of a risk in the eyes of a lender, which can result in a lower rate.
  • Choosing a shorter repayment term: Lenders typically offer lower rates to borrowers who opt for shorter terms. For example, you’ll likely get a lower rate on a 15-year mortgage compared to a 30-year loan.

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Blueprint is an independent publisher and comparison service, not an investment advisor. The information provided is for educational purposes only and we encourage you to seek personalized advice from qualified professionals regarding specific financial decisions. Past performance is not indicative of future results.

Blueprint has an advertiser disclosure policy. The opinions, analyses, reviews or recommendations expressed in this article are those of the Blueprint editorial staff alone. Blueprint adheres to strict editorial integrity standards. The information is accurate as of the publish date, but always check the provider’s website for the most current information.

Jamie Young is Lead Editor of loans and mortgages at USA TODAY Blueprint. She has been writing and editing professionally for 12 years. Previously, she worked for Forbes Advisor, Credible, LendingTree, Student Loan Hero, and GOBankingRates. Her work has also appeared on some of the best-known media outlets including Yahoo, Fox Business, Time, CBS News, AOL, MSN, and more. Jamie is passionate about finance, technology, and the Oxford comma. In her free time, she likes to game, play with her two crazy cats (Detective Snoop and his girl Friday), and try to keep up with her ever-growing plant collection.

Megan Horner is editorial director at USA TODAY Blueprint. She has over 10 years of experience in online publishing, mostly focused on credit cards and banking. Previously, she was the head of publishing at Finder.com where she led the team to publish personal finance content on credit cards, banking, loans, mortgages and more. Prior to that, she was an editor at Credit Karma. Megan has been featured in CreditCards.com, American Banker, Lifehacker and news broadcasts across the country. She has a bachelor’s degree in English and editing.

Ashley is a USA TODAY Blueprint loans and mortgages deputy editor who has worked in the online finance space since 2017. She’s passionate about creating helpful content that makes complicated financial topics easy to understand. She has previously worked at Forbes Advisor, Credible, LendingTree and and Student Loan Hero. Her work has appeared on Fox Business and Yahoo. Ashley is also an artist and massive horror fan who had her short story “The Box” produced by the award-winning NoSleep Podcast. In her free time, you can find her drawing, scaring herself with spooky stories, playing video games and chasing her black cat Salem.

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Source: usatoday.com

Apache is functioning normally

Apache is functioning normally

Editor’s Note: For the latest developments regarding federal student loan debt repayment, check out our student debt guide.

What happens if I miss a student loan payment? That’s the question on many borrowers’ minds as federal student loan payments resume after more than three years of emergency forbearance.

Missing payments on student loans can have a variety of negative consequences, including damage to your credit score and wage garnishment. However, the Biden administration is offering a temporary “on-ramp” to ease the transition back into repayment. Until the end of September 2024, borrowers will not have to worry about their student loans falling into default or damage to their credit score if they miss payments.

Interest will continue to accrue during this time, though, and any missed student loan payments will be due eventually. Rather than ignoring your student loan bills, take some time to review your options for making them more affordable. The Department of Education offers various plans to help struggling borrowers get back on track.

What Happens if I Miss a Federal Student Loan Payment?

Missing federal student loan payments typically leads to delinquency and default, but from October 2023 through September 2024, borrowers who miss a payment will avoid these consequences. Here’s a closer look at what this student loan on-ramp entails, followed by what typically happens when you miss payments.

Understanding the Student Loan On-Ramp

Federal student loan borrowers have been exempt from student loan payments and interest since March of 2020. With the end of this emergency forbearance, the Biden administration is offering a one-year on-ramp for borrowers to adjust to the new reality. Until Sep. 30, 2024, borrowers won’t face the usual consequences if they miss payments.

For example, your loans won’t fall into delinquency or default, and missed payments won’t be reported to the credit bureaus. Your loans won’t go into collections, and you won’t have to worry about garnishment of your wages, tax refund, or Social Security benefits.

What’s more, the interest that accrues during this year won’t be capitalized, or added onto, your principal balance when the on-ramp expires. This on-ramp gives borrowers time to start making payments again after the lengthy pause.

However, interest will still accrue during this time, and you’ll still have to pay back your loan eventually. Instead of skipping payments over the next year, you may be better off applying for an income-driven repayment plan for more affordable monthly bills.

What Normally Happens When You Miss a Student Loan Payment

Normally, your student loan is considered delinquent the day after you miss a payment. Even if you start making the next payments, your account will remain delinquent until you make up for the missed payment or receive deferment or forbearance.

Once 90 days pass, your loan servicer will let the major credit reporting agencies know that your loan is delinquent. Your credit score will take a hit, making it more difficult to qualify for good terms on loans or credit cards or to rent an apartment.

If you continue not paying, your loan will go into default. For federal loans, the government will wait 270 days. Defaulting on your student loan has serious consequences. The entire amount you owe on your loan, including interest, becomes due immediately.

You won’t be able to take out any other student loans, and you’ll no longer qualify for deferment or forbearance or be able to choose your own mortgage, car loan, or other forms of credit. The government may take your tax refund or federal benefits to pay off your loan. You may also have your wages garnished, meaning your employer will take part of your paycheck and send it to the government to be applied toward the loan.

It’s rare, but the government can also sue you at any time — there’s no statute of limitations. You may also be responsible for collection fees, attorney’s fees, and other costs. In other words, you do not want to default on your student loans. (If you do, options exist for getting out of default, such as the Fresh Start program.)
💡 Quick Tip: Get flexible terms and competitive rates when you refinance your student loan with SoFi.

What Happens if I Miss a Private Student Loan Payment?

Private lenders usually give you much less leeway than the federal government. Exactly what happens if you miss a payment depends on the company’s policies and your loan terms. A private lender can tack on late fees and transfer your loan to a debt collection agency.

Also, private lenders can sue you if you stop paying your student loans. If they win, a court can sign a judgment allowing them to garnish your wages. States set the statute of limitations for lawsuits about payment of private loans; the time period usually ranges from three years to a decade. But the lender can continue trying to collect the debt for as long as they want. Plus, certain actions can reset the statute of limitations, such as making a payment or even acknowledging that the debt belongs to you.

Will My Loans Eventually Go Away if I Can’t Pay?

If you stop paying your student loans, they will not go away. However, it may be possible to discharge student loans in bankruptcy or qualify for student loan forgiveness or discharge.

For example, federal student loans can be discharged if you suffer from a total permanent disability or your school closes while you’re attending or soon after you leave. You can also pursue student loan forgiveness programs, such as Public Service Loan Forgiveness or Teacher Loan Forgiveness.

Student loan cancellation from an income-driven repayment plan may also be an option. Income-driven plans will discharge your remaining student loan balance at the end of your term. While the term is 20 or 25 years for some plans, the new SAVE plan will offer forgiveness after 10 years if your original principal balance was $12,000 or less. On all the income-driven plans, it’s possible that your monthly payment could be $0, depending on your discretionary income.

For instance, borrowers who earn less than $32,800 as individuals or $67,500 as a family of four in most states could have $0 monthly payments on the SAVE plan. If this describes you, you could essentially stop paying your student loans and see them go away after anywhere from 10 to 25 years on the plan, depending on how much you borrowed and whether you took out the loans for undergraduate or graduate school.

However, you’ll have to apply for income-driven repayment and recertify your income annually to stay on the plan and keep making progress toward loan cancellation. If you give the Department of Education permission to access your tax information, it can recertify your plan automatically each year.

What if I’m Experiencing Financial Hardship?

If you are having a tough time with your finances or are putting off making a late student loan payment, don’t just ignore your loans; instead, approach your lender or loan servicer to discuss your options.

For federal loans, an income-driven repayment plan could help. Income-driven plans, which include SAVE, PAYE, Income-Based Repayment, and Income-Contingent Repayment, adjust your monthly payments based on a percentage of your discretionary income. Most also extend your loan terms and offer loan forgiveness if you still owe a balance at the end. The new SAVE plan particularly has the most generous terms for borrowers.

You might also be able to qualify for a deferment or student loan forbearance, allowing you to temporarily stop or reduce payments. If you’re in deferment, depending on the type of loan you have, you may not be responsible for paying the interest that accrues during the deferment period. Among other reasons, you can apply for deferment if you’re in school, in the military, unemployed, or not working full-time.

You can apply for forbearance if your student loan payments represent 20% or more of your gross monthly income, if you’ve lost your job or seen your pay reduced, if you can’t pay because of medical bills, or if you’re facing another financial hardship, among other things. Private lenders are not required to offer relief if you’re facing hardship, but some, including SoFi, do.

Will I Be Sent to Collections if I Do Not Pay My Student Loans?

It is possible that if your student loan is in default it may be sent to a collections agency. Federal student loans in default are managed by the Department of Education’s Default Resolution Group. The Default Resolution Group oversees collections for all federal student loans that are in default, so they are not sent to a private collections agency.

The Department of Education is temporarily offering a Fresh Start program for student loans in default. By calling your loan servicer or logging into myeddebt.ed.gov, you can get your loans back into active repayment, enroll in a new repayment plan, and have the record of default removed from your credit report. You’ll also regain access to federal financial aid.

Private student loans may be sent to a collection agency as soon as the loan enters default, which is generally after 90 days of non-payment.

What if I Don’t Expect My Situation to Change Anytime Soon?

Deferment, forbearance, and relief offered by private lenders are temporary solutions. If your financial hardship looks like a long-term issue, you’ll need a permanent fix.

With federal loans, you may be eligible for an income-driven repayment plan. The government currently offers four plans that aim to make payments affordable by tying them to your monthly income.

On most plans, the payments range between 10% and 20% of your discretionary income, and if you make them on time, the balance is eligible to be forgiven in 20 or 25 years.. As mentioned, though, the new SAVE plan may offer loan forgiveness after just 10 years, depending on your original loan balance. Plus, starting in July 2024 it will cut monthly payments on undergraduate loans in half. For most borrowers, the SAVE plan will likely offer the most affordable monthly payments. However, parent loans are not eligible for SAVE. If you’re a parent borrower, your only option for an income-driven plan is Income-Contingent Repayment.

Private student loans are also not eligible for income-driven repayment, and most private lenders don’t offer this option. If you’re struggling to afford your private student loan bills, though, it’s worth explaining your situation to the lender and seeing if they can work with you on a feasible repayment plan. It’s in their interest to continue collecting even partial payments from you, rather than seeing payments stop altogether and having to go through the trouble of lawsuits or referrals to collection agencies.

Why You May Want to Consider Refinancing

Another potential long-term solution to unaffordable payments is student loan refinancing. With a private lender like SoFi, you can refinance federal student loans, private loans, or both. Refinancing involves obtaining a new loan to pay off all of your old ones and committing to the new terms and interest rate.

Refinancing your student loans can make sense if you qualify for a lower interest rate, which, depending on the term you choose, may be able to cut down the money you spend in interest over the life of your loan. Or, if you choose a longer term than you originally had when refinancing, you could lower your monthly payments, which can make the loan more affordable for you now. You may pay more interest over the life of the loan if you refinance with an extended term.

When you refinance with SoFi, you won’t pay any origination fees to refinance, and if your financial situation improves down the line and you want to pay off your loan faster, you won’t face prepayment penalties. It takes just two minutes online to figure out whether you qualify and the potential rates you can obtain.

The Takeaway

Missing student loan payments can have serious consequences, including entering default and damaging your credit score. Fortunately, borrowers have some leeway through September 2024 as they adjust to making payments on their federal loans again. However, private student loans offer no such benefit.

Refinancing could be an option to consider for borrowers looking to secure a lower interest rate. Consider SoFi — where there are zero fees for refinancing student loans and qualifying borrowers can secure a competitive interest rate.

Hoping to get a handle on your student debt? Look into whether refinancing your student loans with SoFi could help you lower your payments or save money in the long term.

FAQ

What happens if I’m late on a student loan payment?

If you are late on a student loan payment, the loan may be considered delinquent. The loan will remain delinquent until a payment is made, or other arrangements — such as deferment or forbearance — are made. Through Sep. 30, 2024, missing payments on your federal loan payments won’t cause them to go into delinquency or default thanks to the student loan on-ramp.

Does a late payment on a student loan affect credit?

A late payment may have a negative impact on your credit score. With the exception of the student loan on-ramp through the fall of 2024, federal loans are normally reported to the credit bureau if they remain delinquent for 90 days. Private student lenders may report a late payment to credit bureaus after 30 days.

What happens if you miss a student loan payment by 270 days?

If you fail to make payments on your federal student loan for 270 days, the student loan will enter default (again, with the exception of the temporary student loan on-ramp). Consequences of default can be serious, such as the total balance of the loan becoming due immediately.

Private student loans may be considered in default after 90 days.

SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

Student Loan Refinancing
If you are a federal student loan borrower you should take time now to prepare for your payments to restart, including the opportunity to refinance your student loan debt at a lower APR or to extend your term to achieve a lower monthly payment. (You may pay more interest over the life of the loan if you refinance with an extended term.) Please note that once you refinance federal student loans, you will no longer be eligible for current or future flexible payment options available to federal loan borrowers, including but not limited to income-based repayment plans, such as the SAVE Plan, or extended repayment plans.

SoFi Private Student Loans
Please borrow responsibly. SoFi Private Student Loans are not a substitute for federal loans, grants, and work-study programs. You should exhaust all your federal student aid options before you consider any private loans, including ours. Read our FAQs.
SoFi Private Student Loans are subject to program terms and restrictions, and applicants must meet SoFi’s eligibility and underwriting requirements. See SoFi.com/eligibility-criteria for more information. To view payment examples, click here. SoFi reserves the right to modify eligibility criteria at any time. This information is subject to change.

External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .

Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.

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Source: sofi.com

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Apache is functioning normally

Apache is functioning normally

Bonds Bounce Despite Stronger Data

By:
Matthew Graham

Thu, Sep 28 2023, 4:11 PM

Bonds Bounce Despite Stronger Data

Bonds lost ground overnight and logically added to the losses after the morning’s Jobless Claims data.  Dovish comments from Fed’s Goolsbee helped push back in the other direction and month-end tradeflows added to gains in the afternoon.  All told, it was a token correction much like last Friday’s, but one that had more of a foundation in a relevant market movement factor (i.e. new ideas from Goolsbee on the Fed possibly being able to claim some victories on inflation without the need to visibly damage the labor market as evidence of success). 

    • Jobless Claims
      • 204k vs 215k f’cast, 202k prev
    • GDP (Q4 final)
      • 2.1 vs 2.1 f’cast, 2.0 prev
    • GDP Delator
      • 1.7 vs 2.0 f’cast, 4.1 prev

08:49 AM

Weaker overnight and additional selling after data (despite an initial, paradoxical mini rally). 10s up 6bps at 4.667.  MBS down 3/8ths after factoring out some illiquidity

12:24 PM

Back into positive territory on gradual gains kicked off by Goolsbee comments. MBS up 3 ticks (.19).  10yr still up 1.1bps at 4.618, but down from highs of 4.688.

02:58 PM

Best levels of the day with MBS up 6 ticks (.19) and 10s down about half a bp at 4.601

 Download our mobile app to get alerts for MBS Commentary and streaming MBS and Treasury prices.

Source: mortgagenewsdaily.com

Apache is functioning normally

Apache is functioning normally

Bonds Almost Hold Onto Gains Ahead of Shutdown Uncertainty

By:
Matthew Graham

Fri, Sep 29 2023, 3:51 PM

Bonds Almost Hold Onto Gains Ahead of Shutdown Uncertainty

Bonds improved moderately overnight, adding onto what was already a fairly substantial recovery yesterday.  The morning’s PCE data was slightly lower than expected, but bonds didn’t seem unequivocally happy about that.  There was a modest extension of the rally and then a slow give-back into the PM hours.  Trading was very flat near unchanged levels after noon ET.  Month/Quarter-end tradeflows are assumed to be underpinning some of the volatility of the past 3 days, as is the uncertainty surrounding the government shutdown.  The most direct implication for bonds is that  they must navigate the most important data week of the month without the most important data (no jobs report or JOLTS next week due to the shutdown).

    • Core PCE m/m
      • 0.1 vs 0.2 f’cast, 0.2 prev
    • Core PCE y/y
      • 3.9 vs 3.9 f’cast, 4.3 prev

08:46 AM

Moderately stronger overnight with some additional improvement after data.  10yr down 5+bps at 4.524.  MBS up just over a quarter point. 

11:11 AM

Giving up some gains.  MBS off a quarter point from highs, but still up nearly an eighth on the day.  10yr still down 4bps on the day but up 3bps from lows. 

03:13 PM

Weakest levels of the day for 10s, up 1bp at 4.588.  Weakest liquid levels for MBS, down an eighth of a point in 6.0 coupons. 

 Download our mobile app to get alerts for MBS Commentary and streaming MBS and Treasury prices.

Source: mortgagenewsdaily.com

Apache is functioning normally

Apache is functioning normally

What is “Repricing” in The Broader Context, And How is it Moving Markets?

By:
Matthew Graham

Wed, Sep 27 2023, 3:36 PM

What is “Repricing” in The Broader Context, And How is it Moving Markets?

We’ve been here before and we’ll be here again, but each time feels like a surprising new twist on what we think we know about bond market motivations.  The key word is “repricing,” and we’re not talking about lender rate sheets.  In this context, repricing refers to a broad understanding among certain market participants that rates need to move higher than they’re reasonably able to move in one trading day.  This results in seemingly paradoxical weakness that’s not obviously connected to data or events in a timely way.  Granted, data and events can help explain the weakness, but only in hindsight.  In other words, this is the type of selling momentum that sends analysts looking for explanations as opposed to the type that follows logically from new developments in data and events.

    • Durable Goods
      • 0.2 vs -0.5 f’cast, -5.6 prev
    • Nondefense, excluding aircraft
      • 0.9 vs 0.0 f’cast, -0.4 prev

08:46 AM

Moderately stronger overnight and holding so far.  10yr down 4.7bps at 4.503.  MBS up just over an eighth.

10:28 AM

Giving up some gains now.  10yr down only .6bps at 4.54 and MBS down an eighth of a point, with several ticks accounted for by illiquidity. 

01:09 PM

Weakest levels of the day.  10yr up 5bps at 4.601.  MBS down almost 3/8ths. 

02:52 PM

More selling.  10yr up 7.6bps at 4.626.  MBS down 3/8ths+

 Download our mobile app to get alerts for MBS Commentary and streaming MBS and Treasury prices.

Source: mortgagenewsdaily.com

Apache is functioning normally

Apache is functioning normally

Verification, Credit, Servicing, Automated QC, POS, DSCR Products; Events and Training Fast Approaching

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Verification, Credit, Servicing, Automated QC, POS, DSCR Products; Events and Training Fast Approaching

By:
Rob Chrisman

Wed, Sep 27 2023, 10:44 AM

Today I head to Phoenix area for the AzAMP annual conference, and am reminded that, “Change is inevitable, except from a vending machine.” The mortgage industry is constantly changing, although Freddie and Fannie have been a somewhat stabilizing influence. But explaining to someone not in the mortgage business what they, the government sponsored enterprises (GSEs) do, is not easy, but in another one of his Mortgage Musings, attorney Brian Levy offers his thoughts on 15 years of being in conservatorship and whether that means it’s time to drop the “S” in GSE. Let’s just hope they don’t become another Amtrak. (Sign up for Musings here.) One topic that has come up at a few conferences, besides Agency buybacks, is demand for “LIP” and “VLIP” borrowers. Are F&F pushing hard for Low Income Purchase and Very Low Income Purchase business, and requesting high percentages of those products with the “threat” of hitting their overall pricing? Address any questions to your Agency rep, but some would say that in this environment, with everyone fighting for every deal and reduced volume, it doesn’t seem fair or even logical to have such a high demand for sellers with something outside of their control. (Today’s podcast can be found here and this week’s is sponsored by Built. Built is powering smarter and faster money movement for the entire construction and real estate ecosystem, all while reducing risk. Hear an interview with Verisk’s Kingsley Greenland on state level structural issues with property insurance and the current state of federal flood insurance.)

Lender and Broker Software, Programs, and Services

“Unlock a world of potential with DSCR loan options, including programs for Foreign National and ITIN investors with Champions Funding. Our business purpose non-owner-occupied Accelerator, Ambassador, and ITIN Accelerator loan programs make homeownership a reality for global clients and expand your borrower pool across the planet. Access DSCR financing for properties up to $3M/80 percent LTV (Accelerator), $1.5M/70 percent LTV (FN), or $1M/80 percent LTV (ITIN) as a broker partner. Visit here for full guidelines & to register as a partner. There you’ll also find DSCR l No Ratio Accelerator for U.S. citizens, including first-time investors. The Champs are the key to unlocking possibilities for your business & your borrowers’ portfolios.”

“The next gen of Xactus360 is here and is it ever shaking up the industry! Xactus’ proprietary verifications platform offers game-changing features that streamline workflows and empower lenders to work more efficiently, such as a single login for Mortgage Credit and Pre-Qualification reports. Not only that, Xactus360 can help improve your automation with key integrations. Flood ReportsX was recently added. Did you know Xactus’ offers no close, no pay flood zone determinations? That means if the loan doesn’t close, you will not pay for it. Xactus360 also includes Appraisal FirewallX which has met the requirements and is capable of fulfilling Fannie Mae data collection orders in addition to supporting Freddie Mac’s ACE + PDR program. Intrigued? Meet with Xactus at the MBA Annual for a demo of Xactus360 and see how this innovative platform revolves around you. To set up a time, email us.”

Does it feel like your current point-of-sale vendor has lost focus on mortgage? At Maxwell, mortgage is all they do. Constantly looking to improve the origination experience, Maxwell Point of Sale offers unique features to help lenders stand out including lender configurability, technology that pre-fills the application for the borrower, a complete Spanish language application, payment capabilities, quick pre-approval letters and more. With an average implementation time of less than 2.5 weeks, Maxwell Point of Sale can start working to improve your bottom line quickly. Schedule a call with the team to learn more.

“Blue Water Financial Technologies Services (“Blue Water”) continues to add new originators, investors, and due diligence providers to its automated QC platform. Let us be your pipes. Our proprietary technology assists your team with rapidly identifying and remediating exceptions! QC is just one of the many capabilities offered by Blue Water’s proprietary platforms for mortgage assets. Your company can value, transact, transfer and QC your mortgage assets using our Single Sign on proprietary technology. Come meet our team in Philadelphia during the MBA Annual 23 from October 15th-18th for a demo and discussion on how Blue Water can help streamline your operational processes and enhance your throughput with our encrypted, onshore, cloud-based tools! Schedule a meeting with our expert sales team today! Services offered by Blue Water Financial Technologies Services, LLC.”

“Working to Provide the Best Homeowner Experience: Cenlar is more than just a mortgage subservicer. We strive to be our clients’ trusted partner each and every day. And a big part of that is how we care for our clients’ homeowners. A home is most likely someone’s largest asset. That’s why we are continuously evolving to provide the best homeowner experience. Whether that’s the regular cycle of onboarding, escrow, monthly payments and year-end or challenges facing homeowners like natural disasters, we are responsive, anticipatory and always caring. Let’s discuss how Cenlar can meet the mortgage servicing needs of your organization. Call 1-888-SUBSERV (782-7378) or visit here. We want to be your trusted partner, each and every day.”

Connect with Sagent @ #NEXTFALL23. Headed to Dallas next week? Make sure you block off a few dates and times to catch Team Sagent on stage at #NEXTFALL23, plus an opportunity to elevate your personal LinkedIn brand with a sponsored headshot station! On Wednesday 10/4 at 1:15 PM CT, join CLO Wendy Lee for an exclusive “AI” Hive roundtable, which will be a precursor to her Ethical AI Use Cases panel on Thursday, 10/5 at 9:15 AM CT. Plus (if you’re onsite), Sagent is sponsoring the Headshot Station during the event (10/4 @ 1:30PM – 4PM CT & 10/5 @ 10AM – 1PM CT), so reserve your spot via’s NEXT’s app and head on over for a warm welcome from Cheryl McKenzie (who will greet you with a glass of champagne) and get picture ready. For more information, click the link here. Hope to see you all there!

Events and Training

Like every other month, September has sailed by, and this Sunday is October. (No, we don’t change the clocks in most states until November.) What’s happening out there? A good place to start is here, and click on “events” for conferences in the future.

Join K&L Gates and special guest, John Beccia, Co-Founder and CEO of FS Vector, for a panel discussion on generative artificial intelligence (AI) in the Fintech and Banking industry on

Thursday, September 28th 9:00-10:30 AM – PT, 11:00 AM-12:30 PM – CT. Discussion will address the legal and ethical risks, mitigation, and best practices to consider across these industries as you develop generative AI products and services or use generative AI in the operation of your business.

In the Dallas area, the TMBA Education Symposium is November 6-7. The Symposium will be held at Westin Dallas Southlake, 1200 E State Hwy 114, Southlake. Early registration ends Oct. 2nd for the best registration rates. I will be there, so please say hi!

If your credit union’s due diligence for quality control relies only on last-minute adjustments during post-closing processes, chances are you’re spending too much time putting out fires rather than adequately serving members’ needs. Market changes demand a more comprehensive and proactive approach to due diligence, and the experts at ACES Quality Management have the wherewithal to help you make that adjustment. Tune into this Inside Track webinar on September 27th at 1 pm CST to learn the why’s and how’s of improving your QC processes.

Looking for more in-depth commentary on weekly mortgage news? Register here for “Mortgage Matters: The Weekly Roundup” presented by Lenders One. Every Wednesday at 2:00 PM EST/11:00 AM PT is a dive into a range of mortgage-related topics, including market trends, interest rate fluctuations, innovative mortgage products, and industry advancements. Listen to a unique mix of age perspective, expertise, and charisma to the screen, ensuring that the information is not only educational but also entertaining. Today features Phil Johnsen, SVP and General Manager of Altisource’s Servicing & Real Estate Solutions Group.

California MBA upcoming Mortgage Quality and Compliance Committee webinar, Navigating the Future of Work: Adapting Return to Office Policies, on Thursday September 28th at 11 A.M. PST. Expert panelists will provide valuable insight on the ever-changing work dynamics, the challenges of managing remote and in-house teams, and MLO enhanced requirements in CA (and other states).

Watch on demand, at your leisure: Millennials and Gen Z’ers represent the largest group of first-time homebuyers. In less than 10 years, 3.1 million will have entered the market. Of these buyers, roughly 75 percent of them report checking social media daily. Making social media a necessary strategy for loan officers. Join Homebot’s VP of Marketing, Ashley Remstad and Mortgage Advisor Sosi Avila as they discuss key strategies and tactics for using social media to your advantage. Register for the webinar here.

Friday the 29th is The Mortgage Collaborative’s Rundown covering current events in the mortgage market for 30-45 minutes starting at noon PT in “The Rundown”. Tom G. and I are joined by Laird Nossuli (iEmergent) and Evan Zuverink (First Commonwealth Bank) to take a dive into Special Purpose Credit Programs.

ACUMA’s Annual Conference is October 1-4 at Gaylord National Resort, National Harbor, Maryland. From legislative and regulatory issues to new marketing and service strategies to cutting-edge technology, conference topics are concurrent with today’s challenges, and networking is a paramount part of the program.

Educate & Elevate with National MI University’s October Webinars. 2023 NextGen Money Mindset: Findings & Insights with Kristin Messerli, October 3rd, 1pm ET. P&L and Balance Sheet Analysis for Self-Employed Borrowers ​​​​​with Marianne Collins – October 4th, 1pm ET. Coaching for Improved Performance ​​​​​with Andrew Oxley, October 5th, 2pm ET. Your Perfect Week with Rebecca Lorenz, October 24th, 1pm ET. Help! I’m in a Funk with Dr. Bruce Lund, October 25th, 2pm ET

MBAC 67th Annual Convention Oct 1-4, 2023 at the Francis Marion Hotel, Charleston, SC. Sponsorship opportunities available, reserve your room at the Francis Marion Hotel use Promo Code MBAC2023 for special rate, Last Day to reserve at this rate, September 11, 2023.

Join St. Louis MBA in Partnership with the Saint Louis Realtors Association for a presentation on the Headwinds & Tailwinds – Economy’s Impact on Housing Market and Where We’re Heading, October 5th, 10:00-11:00, at St. Louis Realtors Association, 12777 Olive Boulevard.

NYMBA ’23 Annual will be held at Turning Stone Resort Casino, October 4th -6th. Kick-off begins with the 2nd annual Golf Tournament at Turning Stone’s Shenendoah course, recently named in Golf Digest’s Editor’s Choice: Top 50 Golf Courses in the U.S. as one of New York’s award-winning courses.

Become a Certified Reverse Mortgage Specialist. CoAMP is partnering with NAMB to bring their CREV course to Denver, Friday, October 6th, 9:00 AM – 5:00 PM MDT at Steward Title: 7979 E Tufts Ave, First Floor Conf Room. Cost for NAMB Members is $199; Courtesy Associate Members and Non-Members is $298 (includes a NAMB Professional/Associate membership). The certification training will give you the information and tools necessary to successfully navigate the product, process, and conversation with potential borrowers.

ConFi Today’s third session webinar, Wednesday, October 11th 11:30 am–12:30 pm PT | 1:30 pm–2:30 pm CT | 2:30 pm–3:30 pm ET; Real Talk About Artificial Intelligence: How Will Enforcement Activity Impact the Use of AI in Consumer Financial Services, will focus on the latest issues and enforcement trends related to financial institutions using AI tools. Specific topics to be covered include Key risk areas, Emerging themes, Risk mitigation steps to take now.

Join Mortgage Bankers Association of Metropolitan Washington for a fast-paced, fun presentation walking through the Fed’s monetary policy, economy, interest rates and housing as we quickly approach 2024. Reading the Markets – A Real-time Economic and Interest Rate Discussion with Bill Bodnar, Thursday, October 19, 10 – 11 am.

Capital Markets

The “higher rates for longer” narrative from the Fed has led to selling in the bond markets over the last several days. Yesterday’s selling lifted yields on 10-year and 30-year Treasuries to fresh highs for the year. “Hawkish” chatter from Fed officials, the latest being Minneapolis Fed President Kashkari saying that a 25-basis point hike prior to year-end was likely, has been the main driver of investor sentiment. Economic data released yesterday showed weaker than expected New Home Sales (actual 675k, expected 695k) and a decrease in the Consumer Confidence Index for September. The U.S. Treasury sold $48 billion in 2-year notes to strong demand ahead of today’s $49 billion 5-year note auction.

Unfortunately, today’s calendar kicked off with mortgage applications decreasing 1.3 percent from one week earlier, according to data from the MBA. August durable goods orders have also been released (+.2 percent, stronger than expected). Later this morning brings a Treasury auction of $24 billion reopened 2-year FRNs and $49 billion 5-year notes. We begin the day with Agency MBS prices better by .125-.250 and the 10-year yielding 4.51 after closing yesterday at 4.56 percent.

Employment

“Are you ever overwhelmed and sense a lack of support? If you’re a business manager leading a hardworking staff and want more strategic guidance and additional resources to thrive, look no further. Nations Lending offers a full suite of tailored support for Producers. With a top-notch Operations department that focuses on streamlining processes to ensure efficient loan origination, with LO-friendly products like Direct Submit, for seamless loan file submission directly to Underwriting. And ACE (Accelerated Competitive Edge) Approvals, our comprehensive underwriting preapproval program saving you time. If you’re interested in excelling with a company that is credited with multiple awards, including three-time Inc. 5000 winner, eight-time winner of Scotsman Guide’s Top Mortgage Lenders, and three-time winner of Top Workplaces for Millennials by Fortune Magazine, then join our family. Become part of our nation and mission to make “home loans. made human.™,” visit Nations Lending to learn more.”

“Visit with a Mortgage Boutique at AIME’s Fuse National Conference in Vegas at booth #418 October 4-7! We are excited for the opportunity to connect with potential business partners, foster meaningful relationships, and explore collaborative pathways to enhance your lending capabilities. Dedicated to providing outstanding service to both clients and partners, a Mortgage Boutique places extraordinary talent at the forefront of our success. Allow us to introduce our newest addition, Alan Michaels, along with his dynamic team. Alan brings a wealth of industry knowledge and a track record of remarkable achievements to the AMB family. We’re thrilled to welcome him aboard and know his expertise will be an invaluable asset as we continue to expand our services and meet the needs of our clients. If you’re passionate about excellence and seeking to join a thriving team, consider a career with a Mortgage Boutique. Contact DJ Ziggas to learn more.”

 Download our mobile app to get alerts for Rob Chrisman’s Commentary.

Source: mortgagenewsdaily.com

Apache is functioning normally

Apache is functioning normally

Stronger Start, Weaker Finish, No Real Reason

By:
Matthew Graham

Tue, Sep 26 2023, 4:25 PM

Stronger Start, Weaker Finish, No Real Reason

Bonds improved in the overnight session, but reversed course the moment that the US bond market hit the 8:20am CME open.  The selling wasn’t intense, but it was consistent from that point on.  10yr yields ultimate set new long term highs just over 4.56 and MBS lost an eighth to a quarter.  The most interesting market mover of the day was the complete absence of compelling market movers.  This fits the “repricing” narrative discussed in the morning commentary.  The silver lining is that the day-over-day losses were far smaller than those seen yesterday, but it’s too soon to conclude bonds are settling in for next week’s big ticket data.

    • Case Shiller Home Prices y/y
      • +0.1 vs -0.3 f’cast, -1.2 prev
    • FHFA Home Prices y/y
      • +4.6 vs 3.2 prev

09:24 AM

Initially weaker in Asia, but stronger in Europe.  Giving back some overnight gains.  10yr down 1.4bps at 4.517 and MBS unchanged to a few ticks lower.

12:18 PM

Selling continued into PM hours.  10yr now up 1.3bps at 4.544.  MBS down just over an eighth. 

02:27 PM

Treasuries continue to weakest levels with 10s up 2.9bps at 4.56.  MBS are down 3/8ths, but more than half of that weakness is due to illiquidity.

 Download our mobile app to get alerts for MBS Commentary and streaming MBS and Treasury prices.

Source: mortgagenewsdaily.com