Archive for June 30, 2015

Should I Choose a Private Student Loan Consolidation?

Most graduates finish college with multiple loans, from federal to a combination of federal and private student loans. Depending on which loans you took, you can face managing repayment to a number of lenders each month. If you have federal and private loans, want to simplify your repayment and adjust your interest rate, a private consolidation may be right for you.

What is a private consolidation?

A loan consolidation is when you combine multiple debts into one loan with one monthly payment. A private student loan consolidation will consolidate private student loans and federal student loansinto one payment. Typically a private student loan consolidation is also a refinance. This means that your financial history will determine your interest rate of your new loan.

Who Should Consolidate Private Student Loans:

  • Borrowers with high interest rate loans, or a mixture of high and low interest rates
  • Borrowers who have multiple monthly payments from multiple servicers
  • Borrowers who want to adjust their loan terms
  • Borrowers who want the option to switch to a variable or fixed rate

Who Shouldnt Consolidate:

  • Borrowers who dont have a credit score of at least 640
  • Borrowers who currently have low fixed interest rates on their loans
  • Borrowers with limited work experience and a low debt to income ratio

Private Consolidation Tips

  • Not all loans have to be included in the consolidation, consider only adding your high interest rate loans and keep the loans you like
  • Compare offers with multiple lenders to ensure the best rate possible with the terms you are looking for
  • Consider adding a strong cosigner to get a lower rate. Some lenders offer a cosigner release after just 12 months
  • Consolidate before you leave your high paying job or are planning on taking on more monthly debt

How to Get the Best Deal

Interest rates and high monthly payments are usually the driving factor to consolidate private student loans and federal. Whether by extending your repayment or by reducing your interest rate, a private consolidation can help you save on your monthly payment. If you have loans with relatively small balances or loans in the hundreds of thousands exploring a consolidation is worth the time investment.

While consolidating your loan pay close attention to the new interest rate you will receive. Make sure that you pay attention to the APR rate that you will receive to account for any fees that may be associated with the process. Obtaining multiple refinancing offers can help you visualize the pros and cons to each lender. For example, some lenders give higher auto-debit rate reduction, which can be very impactful on the rate you decide on. If you are worried about multiple credit inquiries, FICO considers inquiries in a 30-day period as rate shopping and counts them as a single inquiry.

Depending on your student loan goals, a consolidation can help you achieve a lower monthly payment or a lower total repayment. If you are interested in exploring private consolidation offers from multiple lenders, visitCredible.

Council members ask Congress to allow Puerto Rico bankruptcy

Two New York City Council members will on Friday introduce a resolution asking Congress and President Obama to give Puerto Rico the right to file for bankruptcy and restructure its more than $70 billion in debt.

The country’s economy needs immediate support and action from the federal government, and we as elected officials can no longer sit on the sidelines, said Ritchie Torres, a Bronx councilman of Puerto Rican descent, in a statement.

He will introduce the resolution with Council Speaker Melissa Mark-Viverito, who was born in Puerto Rico and who argued, in a separate statement, that a city with such a large Puerto Rican population cannot be silent while the economic crisis deepens.

Because Puerto Rico is a commonwealth, it is not allowed to follow in Detroits path and avail itself of the US bankruptcy codes Chapter 9 protections.

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More Work Needed to Shift Views on Mortgages, Home Buying

There are fewer consumers today who believe that it is difficult to get a mortgage compared with last year. However, the majority of respondents to an Ipsos and Wells Fargo survey still think the origination process is too tough and that there are too few homes on the market.

Changing these perceptions will require effort from stakeholders across the home buying and mortgage finance spectrum.

There is a continuing need for lenders, Realtors, consumer groups and government to educate consumers to their options, for financing a home, said Franklin Codel, head of mortgage production for Wells Fargo Home Mortgage.

Codel and several affordable housing advocates participated in a discussion in conjunction with the release of the second annual How America Views Home Ownership Survey in New York on June 16.

Energy Future Holdings drops bankruptcy auction for Oncor

Dallas-based Energy Future Holdings canceled plans to auction Oncor Electric Delivery, its valuable power distribution business, and will try to resolve its $42 billion bankruptcy under one of two proposals backed by rival groups of creditors.

Unsecured creditors backed by Hunt Consolidated are trying to round up enough senior debtholders to push through a reorganization plan worth about $19 billion. If they succeed, EFH would seek court approval of the plan in October.

If Hunt can’t reach consensus with investors who lent money to Luminant, EFH’s power-generating business, the bankrupt company would proceed with a proposal supported by creditors led by Fidelity Investments. Both groups proposed raising billions of dollars to pay down debt through a sale of shares in a reorganized Energy Future.

Energy Future Holdings entered its $42 billion bankruptcy last year with a plan to break itself in two, giving each part to different sets of creditors. Groups that felt left out of that proposal have fought since then.

“Everyone is unhappy to one degree or another,” Marc Kieselstein, a lawyer for EFH, said Thursday at a court hearing in Wilmington, Del. That’s the nature of bankruptcy, he told US Bankruptcy Judge Christopher Sontchi.

The company may file a revised reorganization plan favored by the Fidelity-led creditors, Kieselstein said. That group is opposed by creditors who endorse the Hunt deal.

EFH will continue to talk to the Hunt group, but at the moment, the company supports the Fidelity plan because it’s more developed, Kieselstein told Sontchi.

The Hunt creditors have offered to buy the regulated Oncor unit and settle many of the bankruptcy’s most contentious disputes, which involve the generating side of the business, Texas Competitive Electric Holdings. Oncor is considered more valuable because it’s profitable.

The Hunt-backed group has committed to raising $12.1 billion to put into the new company, which would own Oncor under the proposal, according to lawyer Tom Lauria. The full offer is worth $19 billion, Lauria told Sontchi.

Hunt Consolidated said in a June 8 regulatory filing that it intended to negotiate with Dallas-based InfraREIT, which it manages, on a possible merger with Oncor. Hunt owns more than 29 percent of InfraREIT, which owns 620 miles of high-voltage lines in Texas, according to the filing.

The rival plans supplanted a proposal that called for auctioning off Oncor. Energy Future’s lawyers told Sontchi that they will cancel a hearing to select a stalking horse to open the bidding.

Before Thursday’s hearing, NextEra Energy had emerged as the front-runner in the now-canceled auction, people with knowledge of the matter said this month. NextEra, based in Juno Beach, Fla., had made a cash offer worth about $18 billion, according to two people familiar with the matter.

Streeterville apartment project scores $160 million construction loan

Local developer David Hovey landed a $159.5-million construction loan for a 53-story apartment tower hes building in Streeterville, next door to another residential high-rise he completed in 2013.

Hovey said he and his partner, Tampa, Fla.-based DeBartolo Development, closed last week on the loan for the 490-unit building at 220 E. Illinois St. The development venture borrowed the money for the $225 million project from Bank of America, PNC Bank and Fifth Third Bank, he said. The venture began work on the site last fall. Construction halted for several months as the development team…