Latest news with #Vosita
Yahoo
01-07-2025
- Business
- Yahoo
4 Ways Personal Loans Can Fast-Track Your Dream Home Purchase
When most people are looking to buy a home, they think of what's required to get a mortgage, and how much they'll pay each month. A personal loan typically isn't used to buy a home, as the maximum amount is typically around $100,000 to $200,000. Explore More: Check Out: But, there are some creative ways that a personal loan can help you on the homebuying journey. Here's what experts had to say. If you're looking to buy a home in the next few years, but you have debt, there is a way personal loans can help. Robert Gabriel, a financial expert and CEO of Vosita, suggested grouping high-interest debt into a personal loan to improve your debt-to-income ratio and credit utilization. 'That can boost your credit score — and lower scores mean lower mortgage rates,' Gabriel said. Read Next: A personal loan won't cover the entire cost of a house, but it definitely could cover the down payment. Sergio Aguinaga, owner and founder of Michigan Houses For Cash, suggested using a personal loan for home buyers who need a little extra cash. '[Personal loans] can help first-time buyers who have steady income but not a lot of savings to get over that final hump,' he said. Gabriel agreed. 'If you're short $5,000 on a 20% down payment, a personal loan will get you there faster, and you can avoid private mortgage insurance (PMI), which costs 0.5% to 1.5% of the loan amount every year,' he added. Aguinaga cautioned that a personal loan adds another monthly payment, so home buyers should make sure to factor that into their budget before opting for one. 'You want to be sure the monthly payment won't stretch your budget too far,' he said. 'But for the right buyer with a smart plan, it can be a powerful tool to close the deal and make the numbers work.' Some first-time home buyers might be at the end of the deal and think they have everything paid for, then they realize they have to pay closing costs. Closing costs are typically between 2% and 5% of the total home price. Gabriel said this is another way personal loans can help. 'If you're buying a $300,000 house, that's $6,000 to $15,000. A personal loan can cover these initial fees without tapping into your emergency fund,' Gabriel added. Aguinaga said a personal loan can help you make home repairs, especially if you need them immediately. 'If you're buying a fixer-upper, that's priced right but won't pass inspection without updates, a personal loan can help you act fast and handle those repairs upfront,' Aguinaga noted. Eli Pasternak, the founder of Liberty House Buying Group agreed, saying using a personal loan to make improvements will serve you in the long run. 'I think you should borrow money to paint, update fixtures and stage properly however because these changes can add $20,000 in value while only costing $8,000 to complete,' Pasternak added. More From GOBankingRates 10 Genius Things Warren Buffett Says To Do With Your Money This article originally appeared on 4 Ways Personal Loans Can Fast-Track Your Dream Home Purchase
Yahoo
12-06-2025
- Business
- Yahoo
The Trump Administration Says Tariffs Aren't Going Away: 5 Ways To Prepare Your Finances
In an appearance on Fox News, Commerce Secretary Howard Lutnick made the Trump Administration's position clear: 'Rest assured, tariffs are not going away.' The Administration has signaled that they will not extend the current 90-day pause on many tariffs. So how should American consumers prepare for a jolt in prices? Trending Now: Try This: Don't get caught flat-footed by price jumps. Start cutting back on spending now, to soften the impact when the worst of it hits. 'People often wait too long to pivot when it comes to their finances,' said Charles Hoff, financial education counselor at DFCU Financial. 'Plan for the worst scenario now, which means cutting expenses to a level where you are living 'well below your means' so you can absorb increasing costs.' Check Out: As you rein in your spending, use the surplus to pad your emergency fund. Robert Gabriel, financial specialist with healthcare platform Vosita, explained that most financial experts recommend emergency savings that can cover three-to-six months of living expenses. 'With the volatility tariffs will create in the economy and prices, shoot for the upper part of that range. A well-cushioned emergency fund serves as a shock absorber against price hikes or possible income disruptions.' Don't just leave that cash losing money in an account earning no or low interest, either. Find a high-interest savings account that can hopefully keep pace with inflation or at least reduce the loss in purchasing power. Cash savings can help you survive an emergency like a health crisis or loss of income. But it won't get you ahead. Research inflation-resilient assets such as stocks, real estate and commodities. You don't need to buy an entire rental property or a silo of grain, either. Explore passive real estate investments such as REITs and private equity real estate and ETFs or mutual funds that own commodities. If you like bonds, look into I-bonds and TIPS, which adjust their interest payments based on the inflation rate. If prices jump by 15% and you only get a 3% raise, you've effectively taken a 12% pay cut. Start positioning yourself for a promotion and pay raise with your current employer if you enjoy working there. If not, start planning for a career move to do work you enjoy more and that pays better. That might require additional certifications or credentials, which take time to earn. Again, start working on them now. To fill out your emergency fund and investment portfolio faster, consider adding a side hustle. Ideally look for side hustles different enough from your day job that it doesn't feel like work. For example, would you enjoy pouring wine at a local winery? Tutoring children or adults? Web design or social media marketing or freelance editing? Get creative with it and have fun. The tariff turmoil isn't over — it's barely begun. Find ways to protect yourself from price shocks and possible recession and job loss or find yourself a victim of it in the coming months. Editor's note on political coverage: GOBankingRates is nonpartisan and strives to cover all aspects of the economy objectively and present balanced reports on politically focused finance stories. You can find more coverage of this topic on More From GOBankingRates 25 Places To Buy a Home If You Want It To Gain Value This article originally appeared on The Trump Administration Says Tariffs Aren't Going Away: 5 Ways To Prepare Your Finances
Yahoo
12-06-2025
- Business
- Yahoo
The Trump Administration Says Tariffs Aren't Going Away: 5 Ways To Prepare Your Finances
In an appearance on Fox News, Commerce Secretary Howard Lutnick made the Trump Administration's position clear: 'Rest assured, tariffs are not going away.' The Administration has signaled that they will not extend the current 90-day pause on many tariffs. So how should American consumers prepare for a jolt in prices? Trending Now: Try This: Don't get caught flat-footed by price jumps. Start cutting back on spending now, to soften the impact when the worst of it hits. 'People often wait too long to pivot when it comes to their finances,' said Charles Hoff, financial education counselor at DFCU Financial. 'Plan for the worst scenario now, which means cutting expenses to a level where you are living 'well below your means' so you can absorb increasing costs.' Check Out: As you rein in your spending, use the surplus to pad your emergency fund. Robert Gabriel, financial specialist with healthcare platform Vosita, explained that most financial experts recommend emergency savings that can cover three-to-six months of living expenses. 'With the volatility tariffs will create in the economy and prices, shoot for the upper part of that range. A well-cushioned emergency fund serves as a shock absorber against price hikes or possible income disruptions.' Don't just leave that cash losing money in an account earning no or low interest, either. Find a high-interest savings account that can hopefully keep pace with inflation or at least reduce the loss in purchasing power. Cash savings can help you survive an emergency like a health crisis or loss of income. But it won't get you ahead. Research inflation-resilient assets such as stocks, real estate and commodities. You don't need to buy an entire rental property or a silo of grain, either. Explore passive real estate investments such as REITs and private equity real estate and ETFs or mutual funds that own commodities. If you like bonds, look into I-bonds and TIPS, which adjust their interest payments based on the inflation rate. If prices jump by 15% and you only get a 3% raise, you've effectively taken a 12% pay cut. Start positioning yourself for a promotion and pay raise with your current employer if you enjoy working there. If not, start planning for a career move to do work you enjoy more and that pays better. That might require additional certifications or credentials, which take time to earn. Again, start working on them now. To fill out your emergency fund and investment portfolio faster, consider adding a side hustle. Ideally look for side hustles different enough from your day job that it doesn't feel like work. For example, would you enjoy pouring wine at a local winery? Tutoring children or adults? Web design or social media marketing or freelance editing? Get creative with it and have fun. The tariff turmoil isn't over — it's barely begun. Find ways to protect yourself from price shocks and possible recession and job loss or find yourself a victim of it in the coming months. Editor's note on political coverage: GOBankingRates is nonpartisan and strives to cover all aspects of the economy objectively and present balanced reports on politically focused finance stories. You can find more coverage of this topic on More From GOBankingRates Mark Cuban Says Trump's Executive Order To Lower Medication Costs Has a 'Real Shot' -- Here's Why This article originally appeared on The Trump Administration Says Tariffs Aren't Going Away: 5 Ways To Prepare Your Finances Sign in to access your portfolio
Yahoo
07-06-2025
- Business
- Yahoo
The 3 Best Ways for Boomers To Use Personal Loans To Stretch Their Retirement
Personal loans can serve many functions, from starting a business to buying a new car — even helping in retirement. While it's always important to exhaust other options first that don't require paying interest, there are some situations where a personal loan can make a difference for boomers in retirement. Financial experts offer the best ways for boomers (or any retiree) to use a personal loan to help fund some aspect of their retirement. Find Out: Read Next: One instance when a personal loan can make sense is to bridge a short-term cash need — like delaying Social Security to maximize benefits or covering a one-time emergency without disrupting long-term investments, according to Christopher Stroup, a CFP and owner of Silicon Beach Financial. The key is using it strategically, not as a recurring income source, he said. See More: If you've got debt that's earning very high interest, such as credit cards or high-interest medical debt, a personal loan can offer you 'breathing room,' Stroup said, 'especially when the new loan has a lower fixed rate and shorter term.' It can also simplify payments and reduce interest. However, Stroup said, 'Know that it only works if spending habits also change; otherwise, debt can pile up again.' While personal loans should not be a go-to for most expenses, Stroup said that when the expense is unavoidable and aligns with a broader financial plan, it can be a good idea. 'For example, a medically necessary home renovation or dental procedure may justify a personal loan, especially if it avoids tapping tax-deferred retirement accounts in a high-income year.' Robert Gabriel a financial specialist and creator of Vosita, said these can include things renovations that improve safety or accessibility (like installing grab bars or a stairlift) and allow a retiree to age in place comfortably. 'Similarly, for unexpected but necessary medical expenses that aren't fully covered by insurance, a personal loan could provide a way to manage the cost over time,' Gabriel said. However, in both these scenarios, the retiree needs to be confident in their ability to repay the loan without jeopardizing their essential living expenses. Credit score also plays a huge role in determining personal loan interest rates, regardless of age, Gabriel said. He said that retirees with excellent credit scores (typically 720 and above) will qualify for the most favorable interest rates, which are currently averaging around 13% to 14% according to recent reports. A good credit score (690-719) will still yield reasonable rates, but they'll likely be a bit higher. 'To improve their odds, retirees should ensure they have a good payment history on all their debts, keep their credit utilization low (the amount of credit they're using compared to their credit limit) and avoid opening new credit accounts unnecessarily,' he said. Even small improvements in credit score can lead to significant savings on interest payments. Using loans to cover everyday expenses is a red flag, however, Stroup warned. It often signals that a retiree's spending is outpacing their income plan. 'Over time, this can create a cycle of borrowing that drains savings, increases financial stress and limits future flexibility,' Stroup said. If you're finding yourself turning to loans for repeated borrowing to cover basic expenses, minimum-only payments or juggling multiple loans without a payoff plan, you could have a problem. 'These patterns can signal deeper cash-flow issues and should prompt a review with a financial planner before debt becomes unmanageable,' Stroup advised. More From GOBankingRates Mark Cuban Warns of 'Red Rural Recession' -- 4 States That Could Get Hit Hard 7 Things You'll Be Happy You Downsized in Retirement 5 Cities You Need To Consider If You're Retiring in 2025 This article originally appeared on The 3 Best Ways for Boomers To Use Personal Loans To Stretch Their Retirement Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
