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How Wedding Expenses Pay for Themselves Long-Term: Recent Research

bride and groom holding hands in heart shape

Couples getting married today may wonder if the investment in a big wedding is worth it. And of course all kinds of family members have their opinions. And they have a point: the average cost of a wedding in the United States in 2017 was nearly $26,000. That money could go to the down-payment on a house, a superstar honeymoon or zucchini spiralizers for everybody!  (Millennials love their vegetable pastas.)

Don’t jump to thrifty Aunt Gargamel’s notion that a wedding is a waste of money, however.

Psychologist Charles Kiesler studied the correlation of weddings and long-term marital success. He found all kinds of advantages to spending for that once-in-a-lifetime celebration.

After decades of research Kiesler concluded, “commitment is strengthened when it is publicly declared because individuals strive to maintain consistency between what they say and what they do.” In other words, a big wedding with many witnesses typically leads to a drive–even a need–to follow through on the commitment. The couple says their vows in front of their community, making a pact, not only with each other, but with all the onlookers as well.

Kinda makes sense, right?

The other advantage of a having a meaningful wedding is the effect it has on the two families involved. During the run up to the event, family members and even friends of the two partners get to know each other. They work together on different projects and share their experiences with the couple. Any time more connections are made throughout our society, the better. New friends are made at weddings. New couples even form when members of the wedding party peek around the bride and groom to bat eyes at each other. We are a social species after all, and extensive research has proven that the stronger and more numerous our connections, the happier and healthier we are as individuals. Having the wedding creates a strong network for the couple to rely on as they tackle big challenges like children, work stressors and deaths in the family. This safety net is priceless.

We know: the wedding is still $26,000! And with the economic downturn of 2008 – 2012, many parents of the those getting married are working madly to save for their own retirement rather than a child’s wedding.

One way to make the price a little more bearable is to take out a personal loan that you pay off monthly for several years. A $26,000 loan at a 7% rate for a 5-year term will run a couple $515 per month. Cost-cutting couples who marry in a park and follow it up with dinner at a reasonable venue can get away with a $10,000 wedding. Amortized at 7% for 5 years, the monthly payment comes down to $198 per month. Both of these figures assume borrowers have “good” credit in the 700 to 720 range.

The personal loan at 7% is a far better option than running up credit card debt where rates run from 15% to 29%. With the money coming up front, however, couples must learn how to budget carefully and with discipline. Having a big lump sum tends to tempt even the cautious to be more loose with cash, getting those extra centerpieces or consenting to let extra people come to the wedding.

With this in mind, take these steps to stretch every penny of the personal loan you qualify for.

  • Get quotes for all venues and services up front
  • Create a spreadsheet that makes comparing venues clear
  • Use cash for the down-payments to reserve venues and vendors
  • Enter all down-payments and payoffs into a budget spreadsheet, including dates

This way, when the loan arrives in your bank account, you can quickly send it to the appropriate vendors before you’re tempted to spend it. Luckily, you have an accountability partner: your betrothed!

But this could be where it gets tough. You don’t want this exciting time to be marred by bickering and disagreement. Be ready to compromise and give up some of your own wishes. Set expectations from the beginning and try to keep it fun rather than stressful. Of course, no two people approach finances similarly. Consider even working with a pre-marital counselor to figure out how you will negotiate different decisions and the budget. That $150 (per session) will come back to you many times over.

Get a Personal Loan for a Wedding: What the Bank Wants

That you’re even reading this post indicates your sincerity about doing everything you can to plan your wedding the right way. Because you won’t need to put up any “security” (car and home loans are “secured” loans), it’s considered an “unsecured loan.” Prepare to apply online for a personal loan for your wedding when you get these documents together.

Proof of income:

  • Bank statements
  • Any and all debts you may have including student loans
  • Basic income and identity documentation such as W2’s, drivers license
  • Social Security card
bride and groom after wedding

A+ Rated First Financial Has the Low-Cost, Online Personal Loans for Your Wedding

First Financial has connected thousands of brides and grooms with low-cost personal loans for weddings. Financing your wedding with an online personal loan is smart money-management. Online lenders can offer lower cost-loans because they don’t have the bricks-and-mortar branches, labor and marketing costs traditional banks do. More, online lenders offer MORE loans to MORE applicants because, with lower costs, they can take risks on more applicants. In fact, online lenders are renowned for acceptance rates far higher than those of traditional banks.

Mortgage Rate Predictions for 2016

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U.S. Consumers Offer Their Mortgage Rate Predictions For 2016

Buy now? In four months? In a year?
Some of the stress can be taken out of the home buying decision when you realize that mortgage loans can always be re-financed, although with some fees and hassle. Keep in mind, too, the old saying,
“The best time to buy real estate is always 10 years ago.”
Ten years into the future, you won’t remember how you fretted over whether you should wait or buy right now. You’ll have 10 years of family memories in the home and neighborhood you’ve come to love.

All this said, when making this huge decision, it’s wise to research where mortgage interest rates are going in 2016. This past spring the most influential economists predicted that the Federal Reserve would raise the prime rate this fall in the August meeting. But then China became unstable, Greece revisited bankruptcy and American employment figures disappointed many. Interest rates stayed the same.

So, once again, now in the fall of 2015 pundits expect Janet Yellen and “the Fed” to hold off raising the prime rate (which in turn raises the mortgage rates) until the beginning of 2016, if then. Keep in mind, too, that America is facing a new challenge. The millennials, many of which are going into their home-buying 30s, seem to be holding off on buying homes. With their parents impacted by the recession, students themselves took out loans, many of which were as predatory as the balloon and interest only home loans that got their parents into trouble. Recent grads now shoulder an average of $30,000, and some have $100,000. They’re paying interest and principle on this big debt, eating into their home fund monies.

Particularly after seeing parents and friends lose homes, this huge generation (90+ million by most counts) seems fine with renting for the foreseeable future. In fact, it’s the renting millennials who’ve driven rental prices up in the past three years. Millennials aren’t exhibiting the home ownership drive their parents did. They’ve learned that Europeans rent families rent the same homes for generations, and don’t necessarily see home buying as the only signal of success. Finally, the tiny home and simplicity movements tell us that the millennials may not buy into the 3,000 square foot, brand new home. Therefore, home prices may not rise as they did in in the early 2000’s.

For now, housing prices may rise a bit over the next year, but most agree that they won’t skyrocket. Federal Reserve officials keep dropping that they’ll raise rates only when the data indicates the economy is heating up. With this month’s disappointing employment report, yet again, that doesn’t look like a possibility soon. Keep in mind that for the last three years, quarter after quarter, economists have been saying that THIS is the quarter the economy will rebound with a vengeance. Still, we’ve had at least 12 quarters of just tepid growth.

If unemployment takes a big dip and inflation looms on the horizon, Yellen will have to tighten. If that first rate hike doesn’t torpedo the stock market, she will continue throughout the year, but ever so gently.

The bottom line? Mortgage rates creeping up but very slowly in 2016. Watch the employment reports. The minute “employment leaps,” rate increases will heat up.

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First Financial’s Online, Mobile Mortgage Loans for Subprime Borrowers

First Financial’s lending partners can provide lower interest rates on mortgage loans because of their cost-saving, online structure. Apply for an affordable mortgage loan here, particularly if your credit rating is “fair,” “poor” or even “bad.” We specialize in getting families with subprime credit into homes. Fill out the application in minutes. Follow First Financial on Facebook to get smart budgeting and saving tips, too!

Home equity loans to access wealth

A home equity loan is generally an additional mortgage on your property. Home equity loans let you tap into your home’s value for cash.

To determine your home’s equity, subtract the amount you owe on all of your outstanding mortgages from the current value of your house. For example, if your property is valued at $150,000 and you owe $100,000, your home equity is $50,000.

Home equity loans can be issued as a lump-sum amount or as a revolving line of credit that you can borrow against as needed.


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