Latest news with #HELOCs
Yahoo
5 days ago
- Business
- Yahoo
1 Reason to Buy Upstart (UPST)
Key Points There's a lot to like about Upstart, as its business has grown nicely despite a difficult environment. Upstart's loan data shows that its model does a superior job of predicting credit losses. While Upstart mostly originates personal loans, there's a more exciting opportunity. These 10 stocks could mint the next wave of millionaires › After a turbulent couple of years following the interest rate spikes of 2022, Upstart's (NASDAQ: UPST) business has grown nicely. In fact, despite the persistent high-rate environment and economic uncertainty, Upstart's loan origination volume grew by a staggering 89% year over year in the first quarter of 2025. Upstart's management is calling for the company to produce its first billion-dollar revenue year ever in 2025. Think about that -- not even during the extreme low-interest environment of 2021 did Upstart ever manage a billion dollars. There are other reasons for Upstart shareholders to be optimistic. The company's loan data shows that it does a more effective job of predicting loan defaults than the traditional FICO model. And after several years of losses, Upstart managed an adjusted EBITDA margin of 20% in the latest quarter and is virtually breakeven on a GAAP net income basis. 1 big reason to buy Upstart now To be clear, Upstart's personal loan vertical has been firing on all cylinders. But it's the two newer verticals -- auto loans and home loans, specifically home equity lines of credit (HELOCs) -- that are most exciting. The auto lending market is a massive one that is several times the size of the personal loan industry. And in the latest quarter, Upstart's auto originations were nearly five times what they were a year ago. Mortgages could be the really big opportunity here. Upstart's HELOC origination volume, which launched a little over a year ago, grew 52% sequentially in the first quarter. Combined, auto and home loans make up about 2% of the company's total loan originations today but could end up being the biggest driver of growth. One key statistic worth knowing is that U.S. homeowners are sitting on an all-time high $35 trillion in home equity, and many are just waiting for the opportunity to tap into it at lower rates. Trump's Tariffs Could Create $1.5 Trillion AI Gold Rush The Motley Fool's analysts are tracking a massive shift in U.S. tech. Over $1.5 trillion is already flowing into infrastructure, AI, and advanced manufacturing… and the number keeps climbing. Following a major tariff policy shift, a new AI Gold Rush is taking shape, and we think . It builds the tech infrastructure that Apple, OpenAI, and others suddenly can't live without. We just released a full write-up on this under-the-radar stock — and why now might be the exact moment to move. Continue » *Stock Advisor returns as of August 4, 2025 Matt Frankel has positions in Upstart and has the following options: short December 2025 $95 calls on Upstart. The Motley Fool has positions in and recommends Upstart. The Motley Fool has a disclosure policy. 1 Reason to Buy Upstart (UPST) was originally published by The Motley Fool Sign in to access your portfolio
CNBC
31-07-2025
- Business
- CNBC
Should you use home equity to pay for a wedding?
Couples who got married in 2025 spent an average of $36,000 on their wedding, according to Zola, up from $33,000 in 2024 and $29,000 in 2023. While many people save up for the big day, nearly a third (31%) charge their wedding expenses. With credit card interest rates sailing past 21%, the bride and groom (or their parents) might be tempted to find other ways to finance the big day. Home equity loans and home equity lines of credit (HELOCs) have lower rates than cards and allow you to borrow a lot more money. You'll also have a lot more time to pay off the debt. But is it a smart move to tap your home equity for a wedding? We asked the experts. Home equity is the percentage of your home you own outright, versus your outstanding mortgage balance. If you pay for your home in cash, for example, you'll start with 100% home equity. If you put 20% down, you'd have 20% home equity at closing. Your home equity grows as you make mortgage payments, but it can also increase if you make home improvements or property values increase. One of the benefits of home equity is being able to leverage it to take out a home equity loan or HELOC. Because the debt is secured by your house, you can usually get a better rate and terms than other kinds of financing. But that also means your lender could foreclose if you fail to make on-time payments. Experts encourage homeowners to think twice before tying up their home equity to fund their big day. "The most clear downside is that you're putting your home at risk for this one-time event," Jovan Johnson, founder of Atlanta's Piece of Wealth Financial Planning, told CNBC Select. "It can be 20 years, or even more, before you pay off that debt." You're also taking a substantial financial risk at the very start of your life together, Johnson added."Life happens. You have to plan for the worst-case scenarios," he said. "If you have to relocate, or something happens and you have to sell your home, that's equity you lose out on." If you're determined to borrow money to pay for your wedding, Johnson said, "I would always start by asking you to consider less risky options — preferably something without your house being collateral." More than one in ten couples use personal loans to finance their wedding, according to Zola. Because of their intended use, they're often referred to as "wedding loans." Here's how a wedding loan compares to home equity financing: If you opt for a wedding loan, LightStream guarantees it will beat competitors' rates and Upstart accepts applicants with credit scores as low as 300. Both made CNBC Select's list of best lenders for wedding loans. 6.94% - 25.29%* APR with AutoPay Debt consolidation, home improvement, auto financing, medical expenses, and others $5,000 to $100,000 24 to 144 months* dependent on loan purpose Good None None None Terms apply. *AutoPay discount is only available prior to loan funding. Rates without AutoPay are 0.50% points higher. Excellent credit required for lowest rate. Rates vary by loan purpose. 7.8% - 35.99% Debt consolidation, credit card refinancing, wedding, moving or medical $1,000 to $50,000 36 and 60 months Credit score of 300 on at least one credit report (but will accept applicants whose credit history is so insufficient they don't have a credit score) 0% to 12% of the target amount None The greater of 5% of last amount due or $15, whichever is greater Terms apply. If you're approved for a home equity loan or HELOC, you can use the funds for nearly any reason, including paying for a wedding. You'lll get a lower interest rate than with a personal loan or credit cards, and you'll have a single debt rather than numerous credit card bills. But experts advise caution because it requires using your house as collateral and could risk foreclosure. If you're determined to borrow from your home equity to pay for a wedding, a HELOC may make more sense. Interest rates can be lower and you can borrow exactly how much you need, rather than paying for financing you didn't use. You can determine your home equity by subtracting your outstanding mortgage balance from your house's current market value. If your property is worth $500,000 and you have $200,000 on your mortgage, you have 60% equity ($300,000). Reach out to a realtor or appraiser to understand your home's market matters — so make the most of it. Get expert tips, strategies, news and everything else you need to maximize your money, right to your inbox. Sign up here. At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every mortgage article is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of mortgage products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics.
Yahoo
30-07-2025
- Business
- Yahoo
KBRA Assigns Preliminary Ratings to J.P. Morgan Mortgage Trust 2025-HE2 (JPMMT 2025-HE2)
NEW YORK, July 30, 2025--(BUSINESS WIRE)--KBRA assigns preliminary ratings to 6 classes of Mortgage Participation Pass-Through Certificates from J.P. Morgan Mortgage Trust 2025-HE2 (JPMMT 2025-HE2), a $362.7 million RMBS transaction sponsored by JPMorgan Chase Bank, National Association and FOCUS III Advisory, LLC consisting entirely of first and second lien home equity line of credit (HELOC) loans. The underlying pool is seasoned approximately five months and comprised of 4,004 loans, with United Wholesale Mortgage, LLC (68.6%) and Better Mortgage Corporation (16.8%) representing the largest contributing originators. The HELOCs are interest-only (IO) adjustable-rate mortgages (ARMs), with IO terms of mostly ten years (95.9%). Most of the loans feature 20-year Amortization Terms, and HELOC initial draw windows of two (0.9%), three (87.0%), five (10.1%) or ten (2.0%) years. As of the June 30, 2025 cut-off date, the borrowers in the pool have drawn $494.4 million from a combined credit limit of $594.0 million for an aggregate utilization rate of 83.2%. The $362.7 unpaid principal balance represents the participation percentage allocated to JPMMT 2025-HE2 from the $494.4 million total drawn amount as of the cut-off date; participation rate equals 73.4%. To access ratings and relevant documents, click here. Click here to view the report. Related Publications RMBS KCAT JPMMT 2025-HE2 Tear Sheet Methodologies RMBS: U.S. RMBS Rating Methodology Structured Finance: Global Structured Finance Counterparty Methodology ESG Global Rating Methodology Disclosures Further information on key credit considerations, sensitivity analyses that consider what factors can affect these credit ratings and how they could lead to an upgrade or a downgrade, and ESG factors (where they are a key driver behind the change to the credit rating or rating outlook) can be found in the full rating report referenced above. A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the Information Disclosure Form(s) located here. Information on the meaning of each rating category can be located here. Further disclosures relating to this rating action are available in the Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at About KBRA Kroll Bond Rating Agency, LLC (KBRA), one of the major credit rating agencies (CRA), is a full-service CRA registered with the U.S. Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority. In addition, KBRA is designated as a Designated Rating Organization (DRO) by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized as a Qualified Rating Agency by Taiwan's Financial Supervisory Commission and is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider (CRP) in the U.S. Doc ID: 1010606 View source version on Contacts Analytical Contacts Daniel Hall, Senior Director (Lead Analyst)+1 Jeremy Kugelman, Director+1 Patrick Gervais, Senior Managing Director (Rating Committee Chair)+1 Business Development Contact Daniel Stallone, Managing Director+1 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
CBS News
28-07-2025
- Business
- CBS News
HELOC and home equity loan rates are falling again. Here's what to do next.
With interest rates on credit cards only slightly lower than a recent record high and rates on personal loans comfortably in the double digits now, many may find themselves looking for inexpensive ways to borrow money. Fortunately, if you're a homeowner, you may have two at your disposal via home equity loans and home equity lines of credit (HELOCs). Rates here have been stagnant in recent months, after ticking up from the low 8% range in the spring. Last week, however, brought positive developments as rates on both declined again. The average HELOC rate declined from 8.27% to 8.26% while the median home equity loan rate fell from 8.28% to 8.25%, according to Bankrate data released on July 23. While those aren't substantial declines, they do represent a step in the right direction for borrowers looking for a cost-effective financing source right now. And if inflation reverses course downward again and interest rate cuts are issued later this summer, they could become even more affordable. Understanding this dynamic, prospective borrowers should consider making some strategic moves now. Below, we'll examine three things they may want to do next. Start by seeing how low a home equity loan rate you could qualify for here. Don't borrow from your home equity carelessly, even with rates declining. With your home functioning as collateral with either product, instead, consider taking these next steps: HELOCs and home equity loans both use your home equity as the funding source, but HELOCs operate as revolving lines of credit with variable interest rates, while home equity loans come as lump sums with fixed rates. You should compare both closely to determine which type fits your unique financial needs right now. For example, if you just want a backup emergency fund that you have no immediate plans to tap into, a HELOC may suffice as it won't require payments unless used. But if you need a large sum of money right away, a home equity loan may be better. With rates on both essentially the same right now, the intended use becomes more of a primary consideration. Compare HELOC and home equity loan rate offers online to learn more. Did you know that you can use a different lender than the one you have your mortgage with when borrowing with a home equity loan or HELOC? While competitors ultimately may have better rates and terms, you won't know which is more favorable before first seeing what your current mortgage lender offers now. So start there before shopping for competitor lenders and rates online. And, if you find a more attractive offer with another lender, consider revisiting your current mortgage lender to see if they're willing to beat it. You may be surprised at how much more affordable your options are by taking the time to shop around. With HELOC and home equity loan rates on the decline and the funding source robust now (the average home equity level sits comfortably above $300,000 now), it can be understandably tempting to borrow more equity than you may need. But that's a risk worth avoiding. With your home functioning as collateral and the potential for it to be foreclosed on if you're unable to make repayments as agreed to, borrowing the right amount of equity is critical. Use this time, then, to determine precisely how much you need versus how much you'd like to use. This will better ensure your ability to make payments in the future and reduce the risks of foreclosure. A new drop in HELOC and home equity loan interest rates offers homeowners an opportunity to borrow against their home equity at a more affordable cost. But that doesn't mean they should do so haphazardly, either. By comparing both products carefully now, shopping for rates from both your current mortgage lender and competitors and crunching the numbers to determine how much equity you require, you can more comfortably position yourself for home equity borrowing success during this decline in rates and, potentially, long-term.
Business Wire
28-07-2025
- Business
- Business Wire
Figure Expands Direct Debt Payoff Offering, Unlocking Greater Loan Eligibility and Streamlined Borrower Experience
NEW YORK--(BUSINESS WIRE)-- Figure Technology Solutions, a technology platform building the blockchain-based capital markets of the future, today announced a significant expansion of Intellidebt, its Direct Debt Payoff (DDP) solution, empowering borrowers to consolidate existing liens and high-interest debt directly through the loan application process. This upgrade boosts borrower qualification potential—improving Combined Loan-to-Value (CLTV), Debt-to-Income (DTI) ratios, and lien position—while helping lenders increase conversions and reduce manual work. With these new features, borrowers can now pay off and consolidate more types of debt, including liens, credit cards, personal loans, auto loans, and home improvement loans. This improvement provides a more flexible alternative to traditional cash-out refinancing—especially valuable for homeowners with adjustable or high-rate mortgages. Highlights of the new features include: Expanded Lien Payoff and Consolidation: Borrowers can now pay off the most junior lien (1st, 2nd, 3rd, etc.) along with other unsecured debt within a single application. Streamlined Requalification Process: Once the lien and loans are paid off, borrowers are automatically requalified through Figure's seamless digital experience—reducing manual work and increasing pull-through. Higher Conversion and Loan Volume: Easier lien consolidation enables borrowers to qualify for higher loan amounts, which can improve lenders' conversion rates and drive pipeline growth. Debt consolidation remains the number-one use case for Home Equity Lines of Credit (HELOCs). Amid rising consumer debt and impending mortgage recasts or buydown expirations, Figure's enhanced DDP offers lenders a powerful way to support homeowners while expanding lenders' own opportunity set. Over 6,000 Figure customers have used Intellidebt since its launch; our data shows these borrowers: Increased their FICO scores by an average of 27 points within the first month after using Intellidebt Paid off an average of $24,500 in outstanding debt 'Lenders have been looking for a cost effective solution for lower balance loans as they can be expensive to originate, so we're pleased to expand access to low cost, low balance refinance options. We're redefining how borrowers access equity to manage debt, while giving lenders a smarter, faster way to serve more qualified applicants,' said Michael Tannenbaum, Figure CEO. 'It's a win-win-win for homeowners, their Loan Officers and the institutions that serve them.' ABOUT FIGURE TECHNOLOGY SOLUTIONS Figure Technology Solutions is a blockchain-native capital marketplace that seamlessly connects origination, funding, and secondary market activity. More than 175 partners use its loan origination system and capital market. Collectively these partners have originated over $16 billion of home equity to date, among other products, making Figure's ecosystem the largest non-bank provider of home equity financing. The fastest growing component is Democratized Prime, Figure's on-chain lend-borrow marketplace. It also includes DART (Digital Asset Registry Technology) for asset custody and lien perfection, and YLDS – an SEC-registered yield-bearing stablecoin that operates as a tokenized Money Market Fund. Figure is the market leader in real world asset (RWA) tokenization and its most recent securitization received a AAA rating from S&P, the first of its kind for blockchain finance. For more information, visit or follow Figure on LinkedIn.
