LIMA (Reuters) -Peru’s government on Saturday blasted the raid on the home of President Dina Boluarte as part of inquiries into possible illicit enrichment and failure to declare ownership of luxury watches as “disproportionate and unconstitutional”.
Police broke down the door of Boluarte’s residence late on Friday, television images showed, apparently after calls by officials to open up and allow them to search for evidence went unanswered.
Radio station RPP said Boluarte was not at her home at the time of the raid.
Boluarte’s house is located in the Lima district of Surquillo, a few kilometres from the Government Palace where the president works.
Boluarte has made no comments on the raid.
“The political noise that is being made is serious, affecting investments and the entire country,” Peruvian Prime Minister Gustavo Adrianzen wrote on social media platform X. “What has happened in the last few hours is disproportionate and unconstitutional actions.”
Adrianzen said the president was in her residence inside the government palace and that she would make statements to the prosecutor’s office when summoned. He also told RPP that there was “no way” ministers or Boluarte planned to resign.
Two weeks ago, prosecutors began preliminary inquiries following a media report by internet program La-Encerrona that the president possessed several Rolex watches.
The inquiry intended to establish whether there were grounds for a formal investigation of the president.
Boluarte, in office since December 2022, has acknowledged that she owns Rolex watches, which she said she had bought with money she earned since she was young.
Earlier this month, Boluarte said she entered the president’s office with her hands clean and would leave with her hands clean.
The prosecutor’s office had tried unsuccessfully last Wednesday to conduct a check of the watches at Boluarte’s office, but her lawyers said there was a clash of diary appointments and sought to reschedule the appointment.
The inquiry into Boluarte is the latest in a long history of probes into Peruvian presidents and senior officials.
(Reporting by Marco Aquino;Writing by Frances Kerry and Stefanie Eschenbacher; Editing by Helen Popper and Bill Berkrot)
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A Pennsylvania man attacked and killed his neighbor this week using a knife and a chain saw while wearing a mask and costume like the one from the movie “Scream,” officials said.
The man then returned home and watched a movie until police came, according to a criminal complaint from the Pennsylvania State Police.
Police said Zak Moyer, 30, surrendered after the attack and was taken into custody without incident. He has been charged with criminal homicide and is being held at the Carbon County Correctional Facility.
Lehighton Borough police and later state police responded to an active assault incident Monday in Carbon County, in which a man attacked another man using a knife and a chain saw.
Officials found Edward Whitehead Jr., 59, who lived at the home, had been “struck” in the head with the weapons by a man who was “wearing a mask and a black costume-like garment, consistent with the ‘Scream’ movie character,” according to the criminal complaint.
Whitehead was taken to the hospital, where he died from his injuries, state police said. He had cuts on his right arm and on the right side of his head above his eyebrow, wounds on his hands that were “consistent with defensive wounds,” and “a large bleeding wound to the right side of the head,” the complaint said.
Security video showed the suspect leaving Whitehead’s home through the back door and entering the rear door of a home next door, where neighbors said Moyer lived, the complaint said.
Police established a perimeter around Moyer’s home and communicated with him through a notebook, the complaint said.
Moyer’s sister told police Monday that her brother told her a week ago that he wanted to kill Whitehead, according to the complaint.
According to the complaint, Moyer told police that he had gone to the family’s house Monday with a knife and a chain saw while wearing the “Scream” costume to scare them. Asked about the costume and the weapons, police said, Moyer admitted he had planned to kill Whitehead.
Moyer also admitted to stabbing Whitehead in the head, returning to his home to watch a movie until police arrived, and hiding the chain saw in the attic and the knife in his desk drawer, according to the criminal complaint.
Police said in a news release that the investigation is active and there is no threat to the surrounding community.
It could make sense to buy a home when mortgage rates are high, but that won’t always be the case.
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Today’s interest rate environment isn’t the most friendly for borrowers. With the federal funds rate still paused at a 23-year high, today’s mortgage rates may be less than desirable. With 30-year mortgage rates currently hovering near 7%, today’s rates are a far cry from the 3% mortgage rates that were common in 2020 and 2021.
But high mortgage rates don’t necessarily have to put your house hunt on hold. There are a few times when it may be a good idea to buy a home with a high mortgage rate — and a few times to avoid it.
Compare the mortgage rates you could qualify for now.
3 times to buy a home with rates high (and 3 times not to)
Here are three times it makes sense to buy a home with high rates and three times it doesn’t.
3 times to buy a home with rates high
Here’s when buying a home may be advantageous, even in a high-rate environment.
When you want to avoid competition
High rates can price buyers out of the market, which could benefit you if you buy in now. After all, recent data shows that mortgage application volume has been lower, indicating that fewer buyers are looking for homes right now.
With fewer buyers in the market, you may have fewer offers to compete with. That could result in a higher likelihood that your offer will be accepted. And, depending on the market, it could also mean that sellers are open to price negotiations.
Get your mortgage loan pre-approval online now.
When you want to escape rising rent prices
The cost of rent is increasing in most markets. If your rent is on an upward trend and you’re concerned about being priced out of your rental unit, it may be time to look into buying a home. After all, rent doesn’t build equity, but owning a home does. And even with today’s high mortgage rates, building equity is a big benefit of homeownership.
Plus, when you own your home, you can’t be priced out of it simply because home values increase. You can be priced out of renting when rental prices climb, though.
When new opportunities require you to relocate
There may be career or other opportunities that require you to relocate to a different city or another part of the country, like a dream job opportunity in another state. If that’s true for you, it may be wise to purchase a home in the new location now, even with high rates. After all, you can still refinance when the interest rate environment cools.
3 times not to buy a home with rates high
Here are a few times you may want to avoid buying a house when mortgage rates are high.
When you can’t afford the payments
Higher mortgage rates typically result in higher monthly payments on your mortgage loan. If you can’t afford the monthly payments on a home in your market due to today’s high mortgage rates, it may be best to hold off until rates decline in the future.
When you’re happy with your current home
If you’re happy with your current home, buying a new home in today’s high interest rate environment may not be the best choice. It will only cost you more in interest to move, and if you’re content where you are currently, it may be better to wait for mortgage rates to cool instead before you make your move.
When the prospect for rate cuts is high
It may also be wise to wait if you think mortgage rate cuts are on the horizon. After all, just a slight reduction in mortgage rates could result in big savings over the life of your mortgage loan, so waiting a few extra months for that to happen could be a smart strategy. Remember, though, that there’s no real way to accurately gauge where the mortgage rate environment is headed, so holding off could be a gamble, especially if you need to make your move within a specific time frame.
Find out what your mortgage loan options could be today.
The bottom line
While securing a low mortgage rate is ideal, there are times when purchasing a home at a high rate makes sense. Doing so could help you avoid competition during your house hunt, escape rising rent prices or capitalize on new opportunities that require you to relocate. But you may also want to avoid purchasing a home in today’s high-rate environment if you can’t afford the payments caused by higher rates, if you’re happy with your current home or if you believe that rate cuts are on the horizon.
Joshua Rodriguez
Joshua Rodriguez is a personal finance and investing writer with a passion for his craft. When he’s not working, he enjoys time with his wife, two kids, two dogs and two ducks.
Americans must earn at least $76,000 a year to afford a basic home in the U.S., a sharp increase from the recommended income to become a homeowner before the pandemic, according to Redfin.
Only four years ago, people with annual earnings of $40,500 could afford a typical starter house, the online estate firm said in a new report. But the double whammy of rising mortgage rates and record high home prices has lifted the cost beyond the means of many Americans.
“The pandemic housing-market boom changed the definition of a starter home,” Redfin Senior Economist Elijah de la Campa said in a statement. “A decade ago, many people thought of a starter home as a small three-bedroom single-family house. Now that type of home could cost seven figures, especially in expensive parts of the country.”
The typical full-time worker in the U.S. earns roughly $1,145 per week, or roughly $66,000, according to government labor data. Redfin defines a home as affordable if a buyer spends no more than 30% of their income on housing, assuming a 3.5% down payment.
Starter homes are typically smaller, modestly priced dwellings, enabling first-time buyers to become homeowners. But these days, many such properties are in poor physical condition and “often require a lot of work to make them habitable — which makes them cost even more,” de la Campa said.
The typical starter home sold for $240,000 in February, up 3.4% from the prior year, according to Redfin. In February of 2020, the median sale price for such homes was $169,000, while the average mortgage rate hovered around 3.5%.
As of Thursday, rates for a conventional 30-year loan stood at 6.87%, while the median home price as of February was $384,000, according to the National Association of Realtors.
Changes to real estate rules could lower home prices
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With the number of affordable homes on the market in low supply, first-time buyers also must compete with a growing number of all-cash offers. More than a third of the nation’s starter homes were bought in cash in February, Redfin found.
Of course, with real estate prices varying widely across the U.S., some cities are far more affordable than others. In San Jose, for example, residents need annual income of roughly $319,000 to afford a home, while in Detroit earnings of $22,000 are sufficient.
Looking beyond the world of starter homes, affordability gets even higher for the average buyer. Americans must earn roughly $106,500 in order to comfortably afford a typical home, according to research last month from digital real estate company Zillow.
Khristopher J. Brooks
Khristopher J. Brooks is a reporter for CBS MoneyWatch. He previously worked as a reporter for the Omaha World-Herald, Newsday and the Florida Times-Union. His reporting primarily focuses on the U.S. housing market, the business of sports and bankruptcy.
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A HELOC could be beneficial for borrowers who anticipate a rate cut later this spring.
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With the next Federal Reserve meeting scheduled for April 30 — and the next inflation report slated for release on April 10 — many will be hopeful for some economic relief next month. If the inflation report shows a reduction in growth, the Fed may elect to keep interest rates unchanged or even reduce them if they feel confident that inflation is finally cooling.
However, if there is another disappointing inflation report, as there was this month, the Fed’s response may differ.
Against this backdrop, borrowers have limited options. Interest rate hikes have caused the cost of borrowing with mortgages, personal loans and other products to surge in recent years. One cost-effective alternative, however, has been home equity loans and home equity lines of credit (HELOCs). But which will be better this April, a month in which the trajectory of inflation and interest rates could change? That’s what we’ll break down below.
Are you considering tapping into your home equity? See what rate you could qualify for here now.
Will a HELOC or home equity loan be better this April?
Here’s what to consider when looking for a better home equity product in the new month.
Why a HELOC may be better this April
A HELOC operates like a revolving line of credit that allows homeowners to access their existing home equity. Unlike home equity loans, HELOCs come with variable interest rates that can change monthly. While today’s HELOC rates are slightly higher than home equity loan rates, they’re still competitive — and likely to fall if inflation improves and interest rates are reduced.
This could be a major advantage for HELOC users. While a reduction in rates won’t come in April, by securing one during the month users will be in a prime position to see their rate cut either in May or in June, when many experts predict the first rate cut of 2024. Home equity loan borrowers, meanwhile, would need to refinance to secure a lower rate.
Learn more about your HELOC options online today.
Why a home equity loan may be better this April
If your primary goal is to secure the lowest home equity rate possible right now, regardless of where the rate climate is headed, then a home equity loan may be better in April. Home equity loan rates, as of March 27, are 8.59% on average, with 10-year loans at 8.73% and 15-year loans at 8.70% — all three of which are lower than today’s 8.99% HELOC rate.
A home equity loan could also be preferable for you next month if you feel that there’s still work left to do to tame inflation — and that interest rate cuts will be delayed yet again. If this is how you’ve interpreted recent data (and some have), then it could make sense to lock in a home equity loan rate now, before any upward adjustments come later in the year.
The bottom line
The choice between a HELOC and a home equity loan is a personal one with many factors to consider, especially now, with the prospect of interest rate cuts higher than it’s been in years. While it’s important to pick the optimal borrowing product for your needs and goals, either option is better than popular alternatives like credit cards (which hover around 20% right now) and personal loans (which have an average interest rate of 12%). Cash-out refinancing, meanwhile, would change your mortgage terms and likely saddle you with a higher mortgage interest rate in the process. But by understanding the drawbacks of the alternatives — and the rate considerations of HELOCs and home equity loans in the weeks and months ahead — borrowers will be better prepared to make an informed, secure decision.
Matt Richardson
Matt Richardson is the managing editor for the Managing Your Money section for CBSNews.com. He writes and edits content about personal finance ranging from savings to investing to insurance.
It’s important to ensure that you can repay the loan before borrowing from your home’s equity.
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For homeowners looking to fund major expenses, like home renovations, education costs or debt consolidation, a home equity loan can be an attractive option. And, that’s especially true in today’s unusual economic environment. Not only are home equity loan rates currently lower than the rates on credit cards or other types of loans, but the average homeowner currently also has about $300,000 in home equity right now.
But while it can make sense to borrow against the equity you’ve built, the reality is that taking on additional debt secured by your home is a big decision that requires careful consideration. Not everyone is financially prepared for a home equity loan. And, since your home is used as collateral, borrowing too much and missing your home equity loan payments as a result could lead to foreclosure over time.
That’s why it’s important to assess if you can truly afford the added monthly payments and risks that come with a home equity loan.
Ready to tap into your home’s equity? Find the home equity loan rates available to you here.
Can you afford a home equity loan? 5 ways to know
Want to assess whether a home equity loan makes sense for your finances? These five strategies can help:
Calculate your new monthly payment
When you borrow money from your home’s equity, you’ll have a second monthly loan payment in addition to your regular mortgage payment. So, to determine whether you can afford the home equity loan, you need to make sure you can comfortably fit the extra monthly payment into your budget without cutting into other important goals like retirement savings.
There are a few ways to calculate this, but one simple method is to use an online home equity loan calculator to estimate what the new total monthly payment could be. Once you’ve calculated your monthly payment, compare it to your budget to ensure it fits comfortably within the range you have earmarked for it.
Explore your best home equity loan options online today.
Run the numbers on interest rates
Home equity loans typically come with higher interest rates than primary mortgage loans, but the rates are still generally lower on average than most other financing options. To determine whether you can afford the home equity loan, calculate how much you’ll pay in total interest over the life of the loan at the offered rate. Is that a cost you’re willing to take on?
And, be sure to compare the rates you’re offered on a home equity loan or a home equity line of credit (HELOC) to offers you get on other loan products. For example, if you’re a borrower with a good credit score and borrowing profile, you could qualify for a 0% interest rate on a credit card instead. That could be the cheaper option of the two, provided that you can pay off what you borrow within the introductory period.
Assess your job security
Losing your job and primary income stream could make those extra loan payments difficult to keep up with. So, as part of determining whether you can afford a home equity loan, you should look critically at how stable your current employment situation is.
Have there been recent layoffs or reductions at your company or in your field? Were you recently hired or do you plan to change jobs soon? If the answer to either of those questions is yes, be sure to weigh whether you’d still be able to afford your home equity loan payments if you were to be temporarily displaced from your current position.
And, do you have enough emergency savings to cover loan payments for six to 12 months? If not, a home equity loan may be too risky to take on right now.
Understand your equity stake
Taking a large loan against the equity in your home depletes that equity amount, at least until your loan is paid off in full. That’s why it makes sense to ensure that you’ll still have at least 20% equity remaining after the home equity loan.
Keeping that amount (or more) in equity protects you from going underwater on your mortgage if home prices decline. So run the total numbers to understand exactly how much usable equity you’ll have left. And, if you find that you would have less than 20% equity in the home after borrowing, you may want to think twice about whether a home equity loan is truly affordable for you at this point.
Think through your time horizon
If you’re planning to use the money from your home equity loan to make renovations or repairs, it’s important to consider your time horizon while determining the affordability of your loan. After all, while you may be able to afford the monthly payments, the amount of time you plan to remain in your home still plays a critical role in determining if a home equity loan makes financial sense.
For example, if you plan on staying put for 10 years or more, that gives you ample time to enjoy the benefits of your home improvement or other investment over many years. This long time horizon increases the chances you’ll recover the costs through added home equity and value from the renovation.
However, if you’re planning to move within the next five to seven years, you may not recoup enough value to justify the home equity loan costs. That’s because extensive renovations don’t automatically translate into an equal rise in home value, and you may only recoup a portion of those costs when selling. The shorter your time remaining in the home, the less financial sense it may make to take out a home equity loan for renovations or other expenditures.
The bottom line
For many homeowners, a home equity loan can be a valuable financial tool when used strategically. But borrowing money from your home’s equity is not a decision to take lightly. By evaluating your specific circumstances through the lens of monthly payment affordability, interest costs, equity stake, job security and time horizons, you can determine if this type of borrowing makes sense. And, with proper preparation and planning, you can ensure that taking out a home equity loan aligns with your short- and long-term financial goals rather than creating future stress and struggles.
Angelica Leicht
Angelica Leicht is senior editor for CBS’ Moneywatch: Managing Your Money, where she writes and edits articles on a range of personal finance topics. Angelica previously held editing roles at The Simple Dollar, Interest, HousingWire and other financial publications.
If you find your dream home, it may be worth purchasing, even with mortgage interest rates as high as they are.
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After plummeting during the height of the pandemic in 2020 and 2021, mortgage interest rates have been on a steady upward trend. Thanks to decades-high inflation and a surging benchmark interest rate meant to tame it, mortgage interest rates have risen exponentially, hitting their highest point since 2000 last summer. While they’ve come down slightly since, disappointing inflation reports to start 2024 have resulted in the Federal Reserve keeping interest rates unchanged — and mortgage rates have stagnated.
That said, today’s mortgage rates are still relatively low, historically speaking. And the hope is high that a reduction in the benchmark interest rate later this year will also lower homebuyers’ rates. But there are some compelling reasons why homebuyers shouldn’t wait for that to happen. Below, we’ll detail three times you may want to buy a home even with interest rates as high as they are.
Ready to get started? See what mortgage interest rate you could qualify for here now.
4 times you should buy a home with interest rates high
Here are four instances in which you should consider buying a home despite higher mortgage rates.
When you find your dream home
Your dream home won’t be listed for sale every day, hence its name. When it does come up for sale, then, many would recommend buying it, even if it comes with a higher interest rate. After all, you could always refinance to a lower rate in the future, when the market stabilizes.
But, if you wait, you’ll lose out on the opportunity to own a home you truly love — and that opportunity may not arise again soon, particularly in desirable neighborhoods and locations around the country.
Learn more about today’s mortgage rate options online.
When you can afford the higher rate
Crunch the numbers and closely review your budget. You may be surprised at how much you can afford, even with today’s elevated rates. While no one wants to pay more than they should, mortgage interest rates are temporary and subject to change over time.
So if you can afford the higher rate and want to buy a home now, feel free to do so — and just look for the opportunity to refinance in the future.
When the home price is affordable
If you find a home priced right, or even lower than expectations, it could be worth buying, even with mortgage rates as high as they are. Understand that when mortgage rates eventually do come down, a whole slew of related complications may come into play, including a potential rise in home prices. But if you find an affordable home now, before that happens, it could be worth purchasing.
When the alternative is renting
Renting may be the only recourse for many. But renting is not a long-term investment and won’t build any equity. If this is the current alternative, then, it may be worth purchasing a home if you can afford it instead of renting with no end in sight.
While it may be more expensive than preferred, there are multiple advantages to owning a home versus renting, from the aforementioned home equity accumulation (which will build immediately) to interest tax deductions each year (which can be substantial at today’s high interest rates) and the potential profit that can be earned when selling.
Learn more about today’s top mortgage options online.
The bottom line
Today’s elevated mortgage rate environment isn’t preferable for homebuyers, but it doesn’t mean that you should refrain from acting, either. If you discover your dream home, can afford the interest rate, find an affordable house, or have an alternative to rent, it can be worth it for you now. Just make sure to crunch all of the numbers — including closing costs — before proceeding so you know exactly what you can afford to buy at today’s rates.
Matt Richardson
Matt Richardson is the managing editor for the Managing Your Money section for CBSNews.com. He writes and edits content about personal finance ranging from savings to investing to insurance.
Using your primary home’s equity to make a down payment on a second home could make sense in some cases.
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If you’re a homeowner who needs to borrow money at a low rate, this is a great time to do so. Thanks to growing home values and a still-tight housing market, the average homeowner has about $299,000 worth of home equity right now — about $200,000 of which is tappable home equity that can be used for a variety of purposes. And, while rates remain high on most other types of loan products, like credit cards and personal loans, the rates on home equity loans are significantly lower on average.
In other words, many homeowners currently have access to a smart way to borrow via their home’s equity, which can be used for anything from low-interest debt consolidation to paying for education expenses, startup business costs or home renovations and repairs. You can even use your home’s equity to purchase a second home if that’s your goal.
And, while it can make sense to leave your home’s equity untapped to use as a financial safety net, there are certain situations where leveraging it to purchase a second home can be a wise move. However, this decision should be carefully considered, as it involves taking on additional debt and potential risks. So when does it make sense to use your home equity to buy a second home?
Find out what today’s top home equity loan rates are online now.
5 times to use home equity to buy a second home
Here are a few scenarios where using home equity to buy a second home could be a wise move.
To purchase an investment property
One of the most compelling reasons to use home equity for a second home purchase is to acquire an investment property, whether the plan is to use it as a short- or long-term rental or to fix and flip the property. If you have the financial capacity and the real estate market conditions are favorable, investing in a rental property can provide a steady stream of passive income and potential long-term appreciation.
By using the equity in your primary residence to purchase the investment property, you can minimize the initial cash outlay and potentially benefit from tax deductions on mortgage interest and other expenses associated with it.
Explore how your home equity could make borrowing affordable here.
For a vacation home
For those who love to travel and have the means to do so, a vacation home can be an appealing investment. Using your primary home’s equity to finance the purchase can be a viable option, and it can make even more sense if you plan to rent out the property when it’s not in use by you or your family.
By taking this approach, you can help offset the costs of ownership and potentially generate income. And, owning a vacation home can provide a sense of security and familiarity when traveling, as well as a potential source of future appreciation.
To create a multi-generational living arrangement
As the costs of eldercare and assisted living continue to rise, many families are exploring the option of multi-generational living arrangements. By using home equity to purchase a second home, you may be able to create a living space geared toward your aging parents or adult children while allowing them to have their privacy and independence.
This setup can also provide significant cost savings compared to traditional long-term care facilities, which can cost thousands of dollars per month or more depending on where you live, the type of care your loved one needs and other factors.
To relocate for work or lifestyle changes
There may be situations in which a homeowner needs to relocate for work or lifestyle reasons but are hesitant to sell their current home due to various factors, such as an unfavorable market, an emotional attachment to the home or having a very low rate on the mortgage loan for that property — such as the 3% mortgage loan rates that were prevalent in 2020 and 2021.
In these cases, leveraging the current home’s equity to purchase a second home in the new location can provide a temporary solution until the primary residence can be sold or rented out. By taking this approach, it allows for a smoother transition and avoids the need to rush into selling the existing home at an inopportune time.
Preparing for retirement
For those nearing retirement, using home equity to purchase a second home in a desired retirement destination can be a strategic move. By securing a property in advance, you can lock in a favorable purchase price and begin enjoying the benefits of your chosen location before fully retiring. This approach can also provide a potential source of rental income until you’re ready to make the permanent move, helping to build or grow your retirement nest egg.
The bottom line
While these scenarios present compelling reasons to use home equity for a second home purchase, remember that it’s essential to carefully evaluate your financial situation and long-term goals before making this move. Factors such as your credit score, debt-to-income ratio and the potential impact on your retirement savings should be thoroughly considered before using your current home’s equity to purchase a second home, whether you want to buy an investment property, a vacation home or a property to use during retirement.
And remember that it’s crucial to have a solid plan for managing the ongoing costs associated with owning and maintaining two properties. By weighing all of the factors and developing a well-thought-out strategy, using home equity to purchase a second home can be a viable path to achieving your financial and lifestyle goals.
Angelica Leicht
Angelica Leicht is senior editor for CBS’ Moneywatch: Managing Your Money, where she writes and edits articles on a range of personal finance topics. Angelica previously held editing roles at The Simple Dollar, Interest, HousingWire and other financial publications.
