According to an
analysis by The Wall Street Journal, U.S. banks posted a 7.5% decline in 2009 in total loans outstanding, the steepest percentage drop since 1942 (the data is based on information from the Federal Deposit Insurance Corp.). Consumer lending fell by 3.8% as roughly 7,200 banks and credit unions pulled back on mortgages, credit cards and other loans.
Nationally, thousands of banks and credit unions are starting to lend again after a period of “just-say-no”. The contrast is evident in the numbers: the largest 10% of banks by asset size shrank their consumer lending by 4.7% last year, while many smaller banks and credit unions continued to lend. Consumer loans grew nearly 3% at financial institutions that fall in the bottom 50% of the industry in assets.
More than 90% of the decline in loans outstanding occurred at banking organizations with more than $100 billion in assets, according to the FDIC, which includes Bank of America (
BAC), J.P. Morgan Chase (
JPM) and Citigroup (
C). The analysis includes mortgages, credit cards and auto loans held in their portfolios and excludes products they sell off, such as government-backed mortgages.
“More than nine out of every 10 mortgages now being originated carry government backing, giving lenders few incentives to do anything unconventional. But if you have good credit and otherwise fit government standards, there are plenty of lenders happy to give you a loan”.
“The options are likely to be more limited for other borrowers, such as those whose loans are too big for government backing (generally, $417,000 to $729,750, depending where you live). Smaller lenders and credit unions often can be more flexible because they know their customers and local market better or may have a prior relationship with the borrower”
“Most borrowers now wind up with 30-year fixed-rate mortgages, but many lenders that hold loans on their books prefer to offer adjustable-rate loans to protect the bank against rising interest rates, which can eat into profits. Typically, the mortgage amortizes over 30 years, but carries a "balloon payment," which means the loan must be repaid or refinanced after three to five years. The bank typically will finance up to 75% of a home's value, with a 60% limit for larger properties”.
“Some lenders offer better terms to borrowers whose loans they consider low-risk. Certain banks will lend up to 95% of a home's value (instead of its standard 85%) if a borrower has a credit score above 700 and total debt doesn't exceed 25% of income, including the new loan. Payments must be deducted from an account at the bank”.
“Amid record credit-card delinquencies and tighter federal regulations of card-issuer practices, many companies have curtailed card offerings, raised rates and reduced credit limits. Credit unions often offer lower rates than big banks, although their rewards programs can be less generous”.
“Car loans are gearing up again, but borrowers should prepare to pay up unless their credit scores are pristine. Lenders typically want a down payment of at least 10% to 15% and a 60-month loan term, with tougher terms for subprime borrowers”.
Featured - Home Equity Line Of Credit Rates 2024
Third Federal Savings and Loan |
Intro APR 7.240 %
After Intro: 7.240 %
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Conditions… Variable APR of Prime minus 1.01% in all states. Min loan amount $10,000. Max loan amount $200,000. 30-year term. Annual fee waived for the first year. See conditions for guarantee at thirdfederal.com.
- Third Federal rate are typically 20% lower than other leaders
- Guaranteed Lowest Rate
- No closing costs, prepayment penalties, or minimum draw requirements
- 10 year draw period
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Upstart |
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1. APRs for initial advances range from 8.25% to 18.00% based on funded HELOCs as of September 2024. Your actual rate will depend on many factors such as your credit history, loan-to-value ratio, line amount, loan term, lien position, and property state. The lowest rates are only available to the most qualified applicants. The APR is variable, but the APR that will apply to each draw will be fixed on the date the draw is made.
2. As of October 2024, 10% of funded HELOCs achieved a closing timeline of 6 days or less and a funding timeline of 10 days or less. This timeline assumes consumers close with our remote online notary, provide supporting documentation promptly, and ensure the information provided is accurate and consistent with our verification process. Delays, discrepancies, and other unforeseen factors may impact the closing timeline. MBA’s 2024 Home Lending Study reports an average industry closing time of 31 days.
3. A Home Equity Line of Credit has a variable rate. The APR may change, but the APR that will apply to each draw will be fixed on the date the draw is made. Your APR will be the Prime Rate at the time of draw plus a margin fixed for the life of the HELOC.
- As low as 8.25% APR on your initial draw*
- Get your money up to 5x faster than the industry standard*
- Fixed rate on each draw*
- No paperwork needed to apply
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District Lending |
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HELOC, HELOAN or CASHOUT REFI all available.
- No Lender Fees
- Fast
- Easy
- Over 20 Years Experience
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Figure Home Equity Line |
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The Figure Home Equity Line is an open-end product where the full loan amount (minus the origination fee) will be 100% drawn at the time of origination. The initial amount funded at origination will be based on a fixed rate; however, this product contains an additional draw feature. As the borrower repays the balance on the line, the borrower may make additional draws during the draw period. If the borrower elects to make an additional draw, the interest rate for that draw will be set as of the date of the draw and will be based on an Index, which is the Prime Rate published in the Wall Street Journal for the calendar month preceding the date of the additional draw, plus a fixed margin. Accordingly, the fixed rate for any additional draw may be higher than the fixed rate for the initial draw.
- Fastest way to turn home equity into cash
- Flexible terms, redraw up to 100%, borrow $20k-$400k
- Approval in as little as 5 minutes. Funding in as few as 5 days.
- Use to consolidate debt or finance your next home project
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CrossCountry Mortgage, LLC |
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Please note that the interest rates offered are subject to change based on market conditions and borrower eligibility. The pricing and rate provided are accurate as of the specified date. It is important to be aware that the minimum loan amount for any loan program is $50,000. The specific amount and terms of the credit offer will be determined based on underwriting approval and guidelines, which include factors such as your credit history, your ability to make payments, and the available equity in your home.
To qualify for this offer, you must meet the required criteria and demonstrate creditworthiness. Additionally, providing up to two years of income verification may be necessary. The severity of your credit may also impact the required down payment. It is crucial to understand that the lender reserves the right to cancel this offer if the provided information cannot be verified.
Please note that all bankruptcies must be discharged in order to be eligible. This offer is nontransferable and is specifically available for single-family residences or owner-occupied condominiums. Please be aware that mobile homes and cooperatives are not included in this offer. It is important to note that the lender must hold a valid first lien position, and property hazard insurance is a requirement.
These are some key details to consider when evaluating this offer. It is essential to thoroughly review the terms and conditions and seek clarification from the lender regarding any specific questions or concerns you may have before proceeding with the application process.
- Transform Your Home Equity Into Cash: Explore our Tech-Powered Solutions!
- Unlock Your Home's Value: Discover the Power of our Online HELOC!
- Maximize Your Equity: Get Cash-Out Using Our HELOC for Your Next Big Step
- Secure Your Future: Experience the Ease of our Fixed Home Equity Loans
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AmeriSave Mortgage Corporation |
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• Home Equity Loans & Refinance – Cash out
• Customized rate quote with no impact to credit
• Low Rates, Quick Approvals, Wide Range of Products
• 2024 Top 5 J.D. Power Ranking for Customer Satisfaction
- Home Equity Loans & Refinance – Cash out
- Customized rate quote with no impact to credit
- Low Rates, Quick Approvals, Wide Range of Products
- 2024 Top 5 J.D. Power Ranking for Customer Satisfaction
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