Definition and Example of Predatory Mortgage Lending Predatory lending means imposing unfair (and sometimes hidden) fees, interest, or other terms on a loan at the expense of the borrower and benefit of the lender. A predatory mortgage lender might use high-pressure sales tactics or make deceptive promises to entice someone into borrowing a loan they can’t afford to pay back. Reputable lenders will check a borrower’s credit and debt-to-income ratio to make sure they have the means to pay back their home loan before borrowing....

This means if an investor has established a margin account with a brokerage and wishes to purchase $10,000 worth of a stock, that investor must have a minimum of $5,000 of their own cash in the account–50% of the total purchase. How Regulation T Works In determining whether or not to approve a request for a margin account, a brokerage typically reviews an applicant’s income, net worth, estimated liquid net worth, and possibly their credit history....

Any two parties can enter into such an arrangement, but they sometimes are used as part of housing programs designed to establish affordable housing or revitalize neighborhoods. How Does Rent-to-Own Work? The buyer and seller establish a purchase price for the home in their contract. At some point in the future, the buyer can purchase the home for that price—regardless of what the home is actually worth. It’s not uncommon to set a rent-to-own home price that’s higher than the going rate to account for projected increases in home values....

Understand how retrospective rating works, the formulas that help calculate the premiums, and the advantages and disadvantages to retrospective rating. Definition and Examples of Retrospective Rating Retrospective rating is a way of pricing an insurance policy premium based on the losses that occurred during the period of coverage. The policyholder pays a provisional premium that is based on estimated, or projected losses. At the end of the policy, the insurance company adjusts the premium to reflect the actual loss that occurred during the policy period....

By knowing how to calculate the AER, you can accurately compare savings accounts, investments, and loans that have different compounding periods to see which one earns (or saves) you the most money. Definition and Examples of the Annual Equivalent Rate The AER is an interest rate that tells you exactly how much interest you’ll accrue on an investment or a debt based on how often it compounds (in other words, how often you accumulate interest on your interest)....

Of those who attended college, 43%—a whole 30% of U.S. adults—have incurred at least some form of debt from their education, with the most common form being student loans, according to 2019 data from the Federal Reserve. The Federal Student Aid Office offers several federal student loan repayment plans designed to help you repay your student loans after you graduate college. With the Extended Repayment Plan, you might be able to get a more manageable monthly payment....

However, health care plans have become much more affordable for the self-employed. Learn how you may be able to deduct your health insurance premiums and reduce your out-of-pocket health care costs—all while running your own business. Are Self-Employed Health Insurance Premiums Deductible? Under certain circumstances, self-employed individuals can deduct the amount they’ve spent on health insurance coverage for themselves and their families during a tax year—even though this is a personal expense, not a company cost....

As with any investment account, it’s important to understand the many layers of fees. Annual account maintenance fees, early withdrawal penalties, trading commissions, and mutual fund expense ratios can eat away your returns. Let’s discuss what you may encounter with a Roth IRA and what to do about it. The Advantages of a Roth IRA Roth IRAs are the only retirement account where you don’t pay taxes when removing your earnings in retirement because the money you contribute has already been taxed....

But that’s just what Wells Fargo accomplished last week, after it sent a letter to customers informing them that the bank planned to close all of its personal lines of credit in the coming weeks—and that the customers’ credit scores might suffer in the process. The announcement—and the admission that the move could hurt consumers’ credit scores—drew lots of attention, including from Democratic Sen. Elizabeth Warren of Massachusetts, a frequent critic of the bank....

With retirement accounts such as Roth IRAs, most investors aim to invest and hold positions for the long term so contributions and earnings can compound over time. These accounts are designed for buy-and-hold investing. However, some investors use more active trading strategies in their Roth IRAs. Learn more about how Roth IRA trading works, the pros and cons, and if it’s right for you. How Roth IRA Trading Works Roth IRAs offer the opportunity for account holders to invest in many asset types, including mutual funds, stocks, ETFs, bonds, and even more complicated transactions such as trading options....

Is a leased car right for your business? Here are some factors to consider in a decision to lease or buy a company car, how to lease that car (including options), and the tax implications of doing so. Lease Terms You Need to Know Open-End vs. Closed-End Lease When you sit down to negotiate a lease for a company car with a car dealership, you will probably be offered two options: an open-end lease and a closed-end lease....

A general home inspector might see evidence of wood damage and suggest that you call in a pest expert to find out what caused it. These specialists can provide you with different repair options and give you a sense of what the bill might be to remedy the situation. The costs of inspections are generally left to the buyer unless they’re required by an appraiser in order to get a loan....

Even better, the price difference doesn’t necessarily have to be with the same retailer to receive the benefit. So if you purchased a laptop for $800 and later saw it on sale with another retailer for $600, you may be able to file a claim with your credit card issuer and get a refund of $200. Price protection can help you save hundreds of dollars if you take advantage of it—and if your credit card issuer still offers the benefit....

When Can You File Your Tax Return? The IRS usually begins accepting tax returns at the end of January every year. For the 2023 tax filing season, the IRS began processing 2022 tax returns on Jan. 23, 2022. But remember: You’ll need all the necessary paperwork and documents to file—so keep reading. Collect Your Income Documents Your employer has until Jan. 31, 2023, to send you your W-2 form reporting your 2022 earnings....

However, it might be hard to pin down what your cost of living is and determine whether it’s higher than is ideal. To figure this out, you’ll need to understand what cost of living is, how it relates to your income, and how you can use available tools to answer the all-important question: Is my cost of living too high? Income and Cost of Living The more money you earn, the more you can afford in nearly every aspect: a larger home payment, car payment, food costs, utilities, and more....

More specifically, while the average hourly wage reached $31.03 in November—up 8.8% from the $28.51 in February 2020—an estimate of what those wages would be in 1982 dollars shows it was $11.13 an hour in November, just 1% more than the $11.02 it was pre-pandemic, and down from as high as $11.74 early on in the crisis, the Bureau of Labor Statistics said Friday. Indeed, the rising cost of living was the second-most commonly identified threat after the pandemic, according to a new Allianz survey, and the share of people who view it as the single biggest threat to their retirement tripled to 25% in the latest survey from 8% in 2020....

If you want to add these deposit accounts to your savings plan, it’s important to know how to compare CD options. Learn more about where to buy a CD and how to compare their features. What Is a Certificate of Deposit? A certificate of deposit is a time deposit account. When you open a certificate of deposit or CD, you fund it with an initial deposit. This money earns interest for a set time period, known as the maturity period....

You have two options for buying Vanguard funds—from third-party brokerage houses such as TD Ameritrade or Charles Schwab or through Vanguard’s website directly. If you already have an account at a third-party brokerage firm that offers Vanguard funds, buying them through your brokerage is the simplest option. However, third-party brokerages may add fees or restrictions associated with these purchases. Here’s how to decide. Where You Can Buy Vanguard Funds (Besides Vanguard) Due to the popularity of Vanguard’s mutual funds and ETFs, some large brokerage firms now sell their index funds and ETFs in addition to their own....

Chapter 13 cases require a lot of motivation to carry through three to five years of voluntary austerity, but that’s just one reason they fail. Learn whether Chapter 13 is worth it and why there’s a low success rate with this type of bankruptcy. Emotions, Fortitude, and Motivation Chapter 13 is challenging. The pre-petition prep process is probably the most emotionally wrenching period of bankruptcy. Debtors (those filing for bankruptcy) may be asking themselves:...

While 56% of Americans think having an estate plan is important, only 1 in 3 actually have at least one estate planning document, according to Caring.com’s 2022 wills and estate planning study. And when it comes to the very first step—having a conversation about a loved one’s end-of-life plans—20% of individuals have done so. For parents with adult children, the idea of talking about their personal finances can be daunting, but there are ways to make the estate planning process easier....