San Francisco Federal Reserve Bank President John Williams says investors are getting overly complacent about risk.Read More »
Starting July 1, the credit scores of up to 14 million people could begin to rise as credit reports are scrubbed of nearly all civil judgments and many tax liens. Others worry the changes could inflate the scores of risky borrowers and have a catastrophic impact on lenders. On July 1, the three major credit bureaus — Experian, Equifax and TransUnion — will exclude new records of civil judgments and tax liens that don't have minimum identifying information including Social Security numbers or dates of birth as well as any record of judgments or liens that hasn't been updated within 90 days.
Minor expenses can cause major financial problems. “Millennials are falling victim to common financial vices, such as spending money in coffee shops,” according to a new study by personal-finance site Bankrate.com. The average millennial dines at a restaurant or buys take-out food five times per week and nearly 30% of this age goup say they buy coffee at least three times per week. More than half of millennials (54%) eat out at least three times a week, compared to roughly one-third of Generation X-ers and baby boomers. “Often, it’s the minor, habitual expenses, such as take-out and alcohol, that wreak havoc on your budget,” Sarah Berger, a financial analyst at Bankrate, said. “Preparing meals
Current low interest rates have created an environment where the old ideology about mortgages no longer applies. In the past, our financial goals included homeownership free and clear of mortgage debt. We have entered an era where we now suggest you refinance and maintain a mortgage for the rest of your life, or at least to a 30-year mortgage term. I think we all can agree that low mortgage interest rates benefit the homeowners that own a mortgage and qualify for these low rates. Before you start thinking we have lost our minds and there is no way you will attempt to maintain a long-term mortgage, let’s take a look at some of the benefits of holding a mortgage. What was once conveniently saved monthly for you by your bank or lending company is now your responsibility.