![]() Credit Karma to Pay $3 Million to Consumers SEPTEMBER 1, 2022 ~ CAROLYN WARREN Did you get tricked by Credit Karma into thinking you were pre-approved for a credit card? Did Credit Karma waste your time and cause you to have another hard inquiry on your credit report? The Federal Trade Commission doesn’t like trickery, nor does it like a big company taking advantage of consumers, and today, it has taken action! The FTC alleges that the company used claims that consumers were “pre-approved” and had “90% odds” to entice them to apply for offers that, in many instances, they ultimately did not qualify for. The agency’s order requires the company to pay $3 million that will be sent to consumers who wasted time applying for these credit cards and to stop making these types of deceptive claims. “Credit Karma’s false claims of ‘pre-approval’ cost consumers time and subjected them to unnecessary credit checks,” said Samuel Levine, Director of the FTC’s Bureau of Consumer Protection. “The FTC will continue its crackdown on digital dark patterns that harm consumers and pollute online commerce.” For detailed information see FTC website.
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![]() *This is a repost* Perry Mastrovito/Getty Images Written by Miranda Marquit July 26, 2021/ 6 min read Edited By Suzanne De Vita 1. Conventional loan A conventional mortgage is a home loan that’s not insured by the federal government. There are two types of conventional loans: conforming and non-conforming loans. A conforming loan simply means the loan amount falls within maximum limits set by the Federal Housing Finance Agency. The types of mortgage loans that don’t meet these guidelines are considered non-conforming loans. Jumbo loans, which represent large mortgages above the FHFA limits for different counties, are the most common type of non-conforming loan. Generally, lenders require you to pay private mortgage insurance (PMI) on many conventional loans when you put down less than 20 percent of the home’s purchase price. Pros of conventional mortgages
2. Jumbo loan Jumbo mortgages are conventional types of mortgages that have non-conforming loan limits. This means the home price exceeds federal loan limits. For 2021, the maximum conforming loan limit for single-family homes in most of the U.S. is $548,250. In certain high-cost areas, the ceiling is $822,375. Jumbo loans are more common in higher-cost areas, and generally require more in-depth documentation to qualify. Pros of jumbo mortgages
You can use Bankrate’s calculator to determine how much you can afford to spend on a home. 3. Government-insured loans The U.S. government isn’t a mortgage lender, but it does play a role in helping more Americans become homeowners. Three government agencies back mortgages: the Federal Housing Administration (FHA loans), the U.S. Department of Agriculture (USDA loans) and the U.S. Department of Veterans Affairs (VA loans).
4. Fixed-rate mortgage Fixed-rate mortgages keep the same interest rate over the life of your loan, which means your monthly mortgage payment always stays the same. Fixed loans typically come in terms of 15 years, 20 years or 30 years. Pros of fixed-rate mortgages
5. Adjustable-rate mortgage Unlike the stability of fixed-rate loans, adjustable-rate mortgages have fluctuating interest rates that can go up or down with market conditions. Many ARM products have a fixed interest rate for a few years before the loan changes to a variable interest rate for the remainder of the term. Look for an ARM that caps how much your interest rate or monthly mortgage rate can increase so you don’t wind up in financial trouble when the loan resets. Pros of adjustable-rate mortgages
Other types of home loansIn addition to these common kinds of mortgages, there are other types you may find when shopping around for a loan. These include:
Then consider this trending new topic - ADU's. An ADU stands for Accessory Dwelling Unit that have been gaining in popularity in recent years. Cities like Seattle have programs and special developers who make these prefab tiny home designs to be added to your existing backyard.
Thanks to recent press by Elon Musk living in one of these made by Boxable, this concept has really taken flight! These little prefabricated homes are not only modern and sleek in design but they are highly functional, sustainable, quick and easy to set up and did I mention - affordable! Their design allows them to be erected in almost any kind of location, not just an existing backyard. In fact, I just helped a client purchase a piece of land to build her own Tiny home. I can see these will be around to stay as people are looking to move out of the cities, live on land where you can grow your own food and live more sustainably. Boxable is one of the more popular builders because their homes can be installed in just one day. Even if you do not consider living in a Tiny home yourself they are very versatile. These could be used to set up Short Term rentals in key areas, combined to make a larger prefab home or even for emergency shelter purposes. Click the link to see how these homes are being used. What would you do with one of these if you had one? |
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