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Our experts answer readers’ home-buying questions and write unbiased product reviews (here’s how we assess mortgages). In some cases, we receive a commission from our partners; however, our opinions are our own.
- Buying a home is an exciting time that can fill you with a sense of accomplishment.
- But you don’t want to get swept up in the excitement and jeopardize everything you worked for.
- Take practical steps that can save you time, money, and effort down the road.
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Update: This offer has been sent out now on many U.S. Bank personal and business cards. Updated below.
The Offer
Check email for the following offer on U.S. Bank/Elan/Fidelity personal or business credit cards:
- Get $10/1,000 when you pay two or more utility bills with your Fidelity Rewards Visa Signature Card by January 31, 2024.
- Others got an offer for $15.
- Others got an offer for $25.
The Fine Print
- Targeted cardholders are already enrolled, no special enrollment necessary.
- Promotion period is from October 25, 2023, through January 31, 2024.
- To receive this offer, you must pay two or more electric, gas, water or sanitation bills by January 31, 2024.
- The Reward Points award will be applied to your account 2-3 billing cycles after the end of the promotion period. The maximum number of Reward Points awards is one. This offer is not transferable. Your account must remain open, have available credit, and be current (no minimum payment past due) to qualify. This offer may not apply if your credit card has changed to a different type of card within the last 12 weeks or changes before the Reward Points award is applied. As Elan Financial Services cannot control how merchants choose to classify transactions, Elan Financial Services cannot guarantee a transaction will qualify. Contact your billers to learn what types of payments they accept — not all billers accept credit card payments. If you have any questions, call Cardmember Service at 888-551-5144.
Our Verdict
Nice little bonus. Just keep in mind the Fidelity card has a minimum $25 cashout threshold.
Hat tip to reader Joe
Source: doctorofcredit.com
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When it comes to higher education, Native Americans face obstacles. Educationdata.org says that postsecondary attendance among American Indian and Alaska Native students “has been in decline since 2010.” Only 0.7% of college students identified as American Indian or Alaska Native in 2022.
“Research has found that American Indians and Alaska Natives have a much lower rate of college completion than the population as a whole,” the Department of Education’s (DOE) Federal Student Aid (FSA) says on its website.
The soaring cost of college could have something to do with this: The average annual cost of tuition at a public 4-year college is 23 times higher than in 1963. The average cost of college for in-state students at a four-year institution in 2022-23 was almost $11K. Students at private nonprofit four-year institutions paid over $39K on average.
According to the DOE, loan forgiveness (or cancellation) is generally the term used if you are no longer required to make payments on some or all of your student loans.
While there are some specific programs to help with Native American student loan forgiveness, it’s important to also research what financial aid, including scholarships and loans, is targeted toward American Indians and Alaska Natives.
Recommended: Student Loan Forgiveness: Programs for Relief and Mass Forgiveness
Picking a Career With Loan Forgiveness
One very important resource: The Bureau of Indian Education provides a list of scholarships and grants available to Native American students, such as the American Indian College Fund.
Many states offer financial aid to Native American students attending college. Some individual colleges and state schools also offer free tuition and room and board to Native American students. For instance, Native American students who are Montana residents can qualify for a tuition waiver
at Montana State University.
Keeping a career in mind when pursuing an education can make a big difference in financial aid and forgiveness options.
💡 Quick Tip: Enjoy no hidden fees and special member benefits when you refinance student loans with SoFi.
Health Services
One of the programs that gives priority to Native Americans is the Indian Health Services Loan Repayment Program. This program, part of the U.S. Department of Health and Human Services, provides funds for health professionals to help repay eligible education loans.
In 2023, the program announced an increase in the maximum annual award amount to $25,000 per year for new awards and extensions starting in Fiscal Year 2023. You can find details about the new award amount here.
In exchange, health professionals agree to an initial two-year service commitment practicing in areas that serve American Indian and Alaska Native communities.
Priority enrollment in this program is given to American Indians and Alaska Natives. Professions across the healthcare spectrum, including behavioral health, dentistry, and dietetics, are available.
The organization says that available opportunities are based on the greatest staffing needs in Native American health facilities. Participants are also eligible to extend their contracts annually until their qualifying student debt is paid.
Public Service Loan Forgiveness
This program, offered by the DOE, is open to all qualified students, not just Native Americans. The careers that may qualify for Public Student Loan Forgiveness Program (PSLF) range from forestry and natural resources to teaching and law enforcement.
To receive loan forgiveness for work in public service, applicants must work full-time for a qualifying government agency or certain nonprofits. After 120 on-time, qualifying payments in an income-driven repayment (IDR) plan, the remainder of the student debt can be forgiven.
The Department of Federal Student Aid offers a PSLF Help Tool to start work on the Employment Certification Form to apply.
Serving as a full-time AmeriCorps or Peace Corps volunteer also counts as qualifying employment for the program. Loans that may be eligible to be forgiven under PSLF include any non-defaulted loans that you received under the Direct Loan Program from the government. Private loans are not eligible for any federal forgiveness plans.
Recommended: A Look Into the Public Service Loan Forgiveness Program
Teacher Loan Forgiveness Program
For students interested in pursuing a career in teaching, the DOE’s Teacher Loan Forgiveness Program is key. If you teach full-time for five years straight in a low-income school or educational service agency, you might be eligible for up to $17,500 for certain subject areas.
Even if you don’t teach math, science, or special education, you could still receive up to $5,000 in loan forgiveness if you are a qualified full-time elementary or secondary education teacher.
This might be another option for Native American students looking for student loan debt forgiveness by giving back to a community in need.
To qualify, the school or educational agency must be listed in the directory, published by the DOE, for the years you were/are a teacher.
💡 Quick Tip: It might be beneficial to look for a refinancing lender that offers extras. SoFi members, for instance, can qualify for rate discounts and have access to career services, financial advisors, networking events, and more — at no extra cost.
Lowering Your Student Loan Payments
While student loan forgiveness is often a great solution for debt relief, sometimes you might not qualify for career-based programs. One solution is income-driven relief (IDR) for federal student loans.
The Saving on a Valuable Education (SAVE) Plan is the newest income-driven repayment plan. Like other IDR plans, the SAVE Plan calculates your monthly payment amount based on your income and family size. In addition, the SAVE Plan has unique benefits that will lower payments for many borrowers.
The SAVE Plan lowers payments for almost all people compared to other IDR plans because your payments are based on a smaller portion of your adjusted gross income (AGI). Your payment for federal undergraduate loans could be as low as 10% of your discretionary income -– and that percentage could decrease to 5% in 2024.
The SAVE Plan has an interest benefit: If you make your full monthly payment, but it is not enough to cover the accrued monthly interest, the government covers the rest of the interest that accrued that month. This means that the SAVE Plan prevents your balance from growing due to unpaid interest.
Recommended: The SAVE Plan: What Student Loan Borrowers Need to Know About the New Repayment Program
Refinancing Student Loans
Looking to lower your monthly student loan payment? Refinancing may be one way to do it — by extending your loan term, getting a lower interest rate than what you currently have, or both. (Please note that refinancing federal loans makes them ineligible for federal forgiveness and protections. Also, lengthening your loan term may mean paying more in interest over the life of the loan.) SoFi student loan refinancing offers flexible terms that fit your budget.
With SoFi, refinancing is fast, easy, and all online. We offer competitive fixed and variable rates.
SoFi Student Loan Refinance
NOTICE: The debt ceiling legislation passed on June 2, 2023, codifies into law that federal student loan borrowers will be reentering repayment. The US Department of Education or your student loan servicer, or lender if you have FFEL loans, will notify you directly when your payments will resume For more information, please go to https://docs.house.gov/billsthisweek/20230529/BILLS-118hrPIH-fiscalresponsibility.pdf https://studentaid.gov/announcements-events/covid-19
If you are a federal student loan borrower you should take time now to prepare for your payments to restart, including the opportunity to refinance your student loan debt at a lower APR or to extend your term to achieve a lower monthly payment. Please note that once you refinance federal student loans you will no longer be eligible for current or future flexible payment options available to federal loan borrowers, including but not limited to income based repayment plans or extended repayment plans.
SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.
Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.
External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.
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Source: sofi.com
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Many or all of the products featured here are from our partners who compensate us. This may influence which products we write about and where and how the product appears on a page. However, this does not influence our evaluations.
Debt consolidation allows you to take multiple debts and combine them into one, and you can do this with your credit card debt. Doing this makes managing the debt a little easier, and you may be able to get a lower interest rate.
Keeping track of multiple credit card bills can be difficult and potentially cause you to fall behind on payments or forget them altogether. Since payment history is the most important factor that influences your creditworthiness, not making payments on time can damage your credit score.
If you’re struggling to juggle multiple bills, you may want to consider credit card consolidation. Read on to discover eight ways to consolidate your credit card and evaluate the pros and cons of each method to find the best option for you.
Key takeaways:
- Credit card consolidation involves combining multiple credit card balances into one.
- Types of credit card consolidation include credit card consolidation loans, balance transfer credit cards, home equity loans, HELOCs, retirement loans, cash-out auto refinance, family loans, and debt management plans.
- The advantages of credit card consolidation include lower payments, faster debt payoff, and fewer bills to keep track of.
- Consider your financial situation when weighing the pros and cons of each credit card consolidation method.
Table of Contents:
- What Is Credit Card Consolidation?
- How to Consolidate Credit Card Debt
- Credit Card Consolidation FAQ
What Is Credit Card Consolidation?
Credit card consolidation is a debt management strategy that combines different credit card balances into one.
How Does Credit Card Consolidation Work?
You can go about consolidating credit card debt in a few different ways. Generally speaking, you will take out a loan or credit card with a lower interest rate and pay off all current balances with money from the new account. Once the debt is consolidated into one loan or credit card, you can begin paying off this account.
How to Consolidate Credit Card Debt
The best way to consolidate credit card debt depends on your individual financial situation, as each option has its own advantages and disadvantages. Below are eight ways to consolidate credit card debt that you may want to consider.
Credit Card Consolidation Loans
A credit consolidation loan is a type of unsecured personal loan that comes with a set repayment period and fixed monthly payments. You’ll receive an amount of money that you’ll use to pay off your current debt.
For a credit card consolidation loan to make sense, the interest rate needs to be lower than the interest rate for your credit cards. Most personal loans are fixed rate, so you don’t have to worry about the interest rate increasing. Keep in mind that some lenders charge an up-front, one-time origination fee ranging from 1% to 10% of the total loan amount.
To get a credit card consolidation loan, take the following steps:
- Step 1: Research lenders, such as credit unions, banks, or online lenders. Since credit unions are not-for-profit institutions, they typically offer the best rates, especially for individuals with poor credit, although you need to become a member to apply. Banks, on the other hand, generally require a good credit score to qualify. Make sure to consider loan terms, rates and fees.
- Step 2: Get prequalified with a couple of lenders. Some lenders can prequalify your application to see what rates you qualify for so you don’t get hit with a hard inquiry that could potentially affect your credit score.
- Step 3: Decide on a lender and apply. You’ll likely need to submit personal information like proof of your identity and income. After you apply for the loan, the lender will decide on final approval.
- Step 4: Receive the loan and pay off your credit card debt. Once you receive the funds, you’ll use the money to pay off your credit card debt. On the other hand, some lenders will directly pay creditors, which removes the hassle on your end.
Pros
- You can get low interest rates if you have good credit.
- A fixed interest rate keeps your monthly payments constant.
- The lender may pay your creditors directly.
- It can help significantly lower your credit utilization.
Cons
- You must have a good credit score to qualify for lower interest rates.
- You’ll need to pay origination fees.
0% APR Balance Transfer Credit Card
This debt consolidation option involves transferring your debt to a credit card that offers a 0% APR introductory period, typically lasting between 12 and 21 months. During this time frame, you won’t be accruing credit card interest on your debt, allowing you to pay down your balance quicker and save money. With balance transfer credit cards, the goal is to pay down your entire balance within the introductory period.
While many balance transfer credit cards don’t charge an annual fee, there is typically a one-time balance transfer fee that ranges from 3% to 5% of the total amount you transfer. For example, if the company charges a 3% balance transfer fee and you transfer $600, you’ll be charged $18 in fees. To ensure this option makes sense for you, calculate how much interest you’ll save over time to verify it cancels out the cost of the fees.
It’s also important to consider the card’s interest rate following the introductory period in case you don’t pay your balance off within the 0% APR time frame.
Pros
- It provides you the opportunity to pay off debt without accruing interest.
- It gives you a year or more to pay down your balance.
Cons
- It requires good credit for eligibility.
- You’ll need to pay balance transfer fees.
- The APR increases after the introductory period.
Home Equity Loans
If you’re a homeowner, you can take out a home equity loan, which involves borrowing money against the equity in your house. With this method, you’re essentially taking out a secured loan and using your home as collateral.
The main benefit of a home equity loan is that it typically offers lower interest rates than personal loans. However, since the loan is secured with your home, your property could get foreclosed on if you fall behind on payments. Additionally, you may have to pay closing costs when taking out a home equity loan, typically 2% to 5% of the loan amount.
Pros
- They come with lower interest rates than other loan types.
- They offer a long repayment period.
Cons
- You must be a homeowner to qualify.
- Your home could be foreclosed on if you fail to repay the loan.
- You’ll need to pay a second mortgage that will likely have a higher interest rate.
- You’ll need to pay closing costs.
Home Equity Lines of Credit (HELOCs)
Similarly to a home equity loan, a HELOC uses your home as collateral to secure a loan. While home equity loans provide a lump sum, HELOCs work like a revolving line of credit with variable interest rates. This means that the payment amount could vary from month to month. With a HELOC, you have continuous access to money for a period of time, and you can take out as little or as much as you need.
Pros
- They have lower interest rates than other types of loans.
- You have the ability to choose how much of your credit line to use.
Cons
- Variable interest rates may make budgeting more difficult.
- There is a possibility of home foreclosure if you fall behind on payments.
Cash-Out Auto Refinance
A cash-out auto refinance works similarly to a regular auto loan while allowing you to borrow additional money. For debt consolidation purposes, you can use this money to pay off your credit cards. Keep in mind that you could lose your vehicle if you fail to repay the loan.
Pros
- You have the opportunity to receive a lower interest rate on your car loan.
Cons
- You may lose your vehicle if you don’t make payments.
- You’ll need to pay title, lender, and closing fees.
Retirement Account Loans
If you’ve been contributing to an employee-sponsored retirement plan such as a 401(k), 403(b), or 457(b), you can borrow against your savings and use the money to pay off your credit card debt. Since retirement account loans typically have lower rates than credit cards, this route could significantly lower the amount of interest you pay to creditors.
Before taking out a retirement loan, it’s important to understand how it will impact your savings. Even though you’ll pay the money back within five years, you’ll lose out on tax-free earnings.
If you leave your current job, you’ll likely have to pay back the loan immediately or within a short period.
Pros
- They have lower interest rates than credit cards.
- There is no credit score requirement.
- The interest you pay goes into your retirement account.
Cons
- The loan is tied to your current job.
- It can set back your retirement savings.
- You’ll pay taxes and penalties if you don’t repay the loan within five years.
Family Loans
Family loans can provide a more affordable way to pay off credit card debt. However, if you go this route, it’s important to create a written agreement that outlines the amount you’re borrowing, repayment terms, and the interest rate.
Pros
- You’ll likely receive a lower interest rate than what banks, credit unions, and online lenders offer.
- It doesn’t require a formal application process or credit score requirement for approval.
Cons
- You could strain your relationship with your family member if you fall behind on payments.
- There may be tax implications for your family member if they loan you over $17,000.
Debt Management Plans
A debt management plan is a program that nonprofit credit counseling agencies offer to help you pay off credit card debt. It involves grouping credit card balances into one payment and lowering your interest rate so you can pay off the debt within three to five years. Once enrolled in the program, a credit counselor will work with you to create a budget and a repayment plan tailored to your financial needs.
Pros
- It allows you to pay off credit card debt within three to five years.
- It may help you improve your credit.
Cons
- It limits your access to credit cards.
- It prohibits you from taking out new loans.
Credit Card Consolidation FAQ
Below are a few common questions about credit card consolidation.
What Is the Difference Between Credit Card Refinancing and Debt Consolidation?
Credit card refinancing refers to negotiating a better rate for an existing debt, while debt consolidation involves combining multiple debts.
What Are the Advantages of Consolidation?
Advantages of credit card consolidation include lower payments, quicker debt payoff, fewer bills, and the potential to improve your credit.
What Are the Disadvantages of Consolidation?
Disadvantages of credit consolidation include fees and the possibility that you won’t qualify for favorable terms.
How Does Consolidating Your Credit Cards Affect Your Credit?
While consolidating your credit cards can initially hurt your credit, the drop is only temporary. Over time, your credit score should increase as long as you make payments on time.
Is It Smart to Consolidate Credit Card Debt?
It’s smart to consolidate credit card debt if you qualify for lower interest rates and better terms than your current credit cards.
Credit consolidation can help you reach your goal of paying off debt. To qualify for the best terms and rates, start by taking steps to improve your credit. Check your free credit score today to see where you stand.
Source: credit.com
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The New York State Assembly today passed a rather robust legislative package aimed at addressing the “national sub-prime lending crisis.”
The four-bill bundle contains legislation that, if enacted, would offer assistance to homeowners in default or facing foreclosure, establish requirements on all home loans, provide consumer info to all residential mortgage applicants, and most notably, create a one-year foreclosure moratorium for New York residents.
Assembly Speaker Sheldon Silver slammed the Feds for bailing out mortgage lender and investment bank Bear Stearns while leaving everyday homeowners at risk of losing their homes.
He insisted that the slew of bills was not a bailout, but rather an assistance program to help homeowners keep the American dream alive.
The first bit of the legislation would provide assistance payments up to an amount equal to three months of mortgage payments and provide legal services and counseling to help select homeowners in default or facing foreclosure.
The second part of the package would establish the duties of mortgage brokers and remedies for violations, ensure that lenders verify borrower income and the ability to repay loans, and prohibit practices such as balloon mortgage payments, negative amortization and prepayment penalties.
The third bill would permit the courts to delay foreclosure up to one year for subprime borrowers who meet specific conditions, allowing at-risk homeowners to work with their respective lenders to avoid losing their homes.
The final piece of the legislative package would create a “Mortgage Applicant’s Bill of Rights,” which requires mortgage lenders and brokers to provide consumers with a pamphlet that must be read and signed by the borrower prior to applying for a mortgage.
(photo: bogjagendorf)
Source: thetruthaboutmortgage.com
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An FHA loan is a type of government home loan program that the Federal Housing Administration insures. It’s a popular mortgage choice, especially for first-time homebuyers, because an FHA loan has lower down payment requirements than conventional loans.
But there are extra costs related to these loans that you might not be aware of. You can use an FHA loan calculator. to help figure out what your monthly mortgage payment and total cost might be.
Why Use a FHA Loan Mortgage Calculator Table
An FHA loan mortgage calculator table has several benefits for homebuyers. These include:
• Cost estimations: The calculator table can provide estimates of monthly mortgage payments. It helps borrowers plan their budget by showing the expenses involved in buying a home.
• Time-saving: Mortgage calculations can be confusing and complicated for first-time homebuyers. The calculator table helps simplify and speed up this process.
• Comparison tool: Buyers can compare options by entering different scenarios into the calculator table. A different interest rate or purchase price will change the monthly payment amounts. A buyer can compare homes and even different types of mortgage loans to help decide which property and loan to move forward with.
• Informed decision-making: An aspiring homebuyer can use the table to determine the various costs involved in an FHA loan. They can plug in different numbers, such as a lower or higher down payment or a different loan term to see how that might change their monthly payments.
• Financial planning: Overall, the calculator could help borrowers figure out what they can afford now and how to plan for future payments.
💡 Quick Tip: With SoFi, it takes just minutes to view your rate for a home loan online.
First-time homebuyers can
prequalify for a SoFi mortgage loan,
with as little as 3% down.
How to Calculate Your FHA Loan Mortgage Costs
Calculating a government home loan like an FHA loan mortgage involves several steps. These include:
1. Determining the loan’s principal amount and interest. The principal is the amount of money the homebuyer borrows from the lender. The interest is the cost of borrowing the money.
2. Adding property taxes and homeowners insurance. Homebuyers typically pay state and local property taxes. And you’ll also need homeowner’s insurance to insure the house against theft, damage, or loss, among other things.
3. Including the Mortgage Insurance Premium (MIP). The MIP protects lenders in case the borrower defaults on their mortgage payments. Borrowers pay an upfront MIP of 1.75% of the loan amount, and then they pay an annual MIP that’s typically charged in monthly installments as part of the mortgage payment.
4. Adding the loan term. This is the length of the loan, which is usually 15 to 30 years for an FHA loan.
5. Finally, plugging all the information listed above into an FHA mortgage loan calculator table to estimate the total monthly mortgage cost.
This is what the table for a mortgage calculator for an FHA loan might look like. You can use the table as a template or starting point to fill in the information, adjusting as needed, and then make your calculations.
2023 FHA Loan Mortgage Calculator Table |
---|
Purchase Price |
Down Payment |
Interest Rates |
Property Tax |
MIP |
30-year vs 15-year Term |
Total Interest Paid |
Recommended: How do FHA 203(k) Home Loans Work?
Examples of FHA Loan Mortgage Calculations
Here are two examples of FHA loan calculations to give you an idea of how the process works. Keep in mind that there might be additional costs to consider, such as closing costs.
Example #1
• Loan amount: $200,000
• Interest rate: 3.5%
• Loan term: 30 years
• Annual property taxes: $2,500
• Annual homeowners insurance: $800
• Mortgage Insurance Premium (MIP) rate: 0.85%
First, calculate the monthly interest rate:
Monthly Interest Rate = 3.5% / 12 = 0.0029167
Next, calculate the monthly principal and interest:
Monthly Payment = ($200,000 * 0.0029167) / (1 – (1 + 0.0029167)^(-360)) Monthly Payment = $898.09
Then, calculate the annual and monthly Mortgage Insurance Premium (MIP):
Annual MIP = $200,000 * 0.0085 = $1,700. Monthly MIP = $1,700 / 12 = $141.67
Add property taxes and homeowners insurance:
Monthly Property Taxes = $2,500 / 12 = $208.33
Monthly Homeowners Insurance = $800 / 12 = $66.67
Calculate the total monthly mortgage costs:
Total Monthly Mortgage Costs = $898.09 (Principal & Interest) + $141.67 (MIP) + $208.33 (Property Taxes) + $66.67 (Homeowners Insurance) = $1,314.76
The total monthly mortgage cost per month is $1,314.76.
Example #2
• Loan amount: $150,000
• Interest rate: 4.0%
• Loan term: 15 years
• Annual property taxes: $3,000
• Annual homeowners insurance: $900
• Mortgage Insurance Premium (MIP) rate: 0.75%
First, calculate the monthly interest rate:
Monthly Interest Rate = 4.0% / 12 = 0.0033333
Next, calculate the monthly principal and interest:
Monthly Payment = ($150,000 * 0.0033333) / (1 – (1 + 0.0033333)^(-180)) Monthly Payment = $1,081.03
Then, calculate the annual and monthly Mortgage Insurance Premium (MIP):
Annual MIP = $150,000 * 0.0075 = $1,125. Monthly MIP = $1,125 / 12 = $93.75
Add property taxes and homeowners insurance:
Monthly Property Taxes = $3,000 / 12 = $250
Monthly Homeowners Insurance = $900 / 12 = $75
Calculate the total monthly mortgage costs:
Total Monthly Mortgage Costs = $1,081.03 (Principal & Interest) + $93.75 (MIP) + $250 (Property Taxes) + $75 (Homeowners Insurance) = $1,500.78
The total monthly mortgage cost per month is $1,500.78.
💡 Quick Tip: Don’t have a lot of cash on hand for a down payment? The minimum down payment for an FHA mortgage loan is just 3.5%.
Reasons to Calculate Your FHA Loan Mortgage First
There are a number of reasons why it makes sense to calculate an FHA mortgage before you move forward with such a mortgage. Here are five ways calculating your mortgage can be helpful.
• Determining what’s affordable: Determining the cost of the mortgage can help borrowers search for a home within their price range.
• Financial preparation: Buyers can see how much money they should plan to spend each month. They can then create a budget and financial plan in order to be prepared to meet the monthly payments.
• Comparing loan options: Buyers can look at different loan options to choose the one that works best for them. They can also see how a different interest rate, home price, or down payment amount will affect their monthly cost.
• Preventing surprises: Using the calculator helps borrowers understand what the loan costs will be so they don’t get hit with expenses they weren’t expecting.
• Helping with negotiation: The more informed a buyer is about the various costs associated with the loan and the terms, the better they may be at negotiating the best terms.
Recommended: Home Loan Help Center
Tips on How to Save on Your FHA Loan Mortgage
If you’re interested in getting an FHA mortgage, there are a few things you can do to help get the best deal for your situation.
Build your credit score. This is one of the tips to qualify for a mortgage that it’s good to know. Strengthening your credit may help you get better interest rate terms. Pay off your debts if you can, and pay your bills on time to help build your score.
Shop around for the best interest rate. Different lenders offer varying interest rates for FHA loans. See what you may qualify for. A higher credit score may help you get a better rate.
Consider making a higher down payment. This could potentially help make your overall mortgage amount and monthly payments lower.
Negotiate closing costs. Closing costs are typically 4% to 5% of the home’s purchase price. You may be able to negotiate with the lender to try to lower some of those costs.
Take advantage of down payment assistance programs. Many states and cities offer down payment assistance programs for first-time homebuyers.
Consider mortgage refinance when interest rates drop. If you get a lower rate when you refinance, you can typically reduce your monthly mortgage monthly payments.
The Takeaway
If you’re interested in an FHA loan, an FHA loan calculator can help you figure out the total costs of your loan and your monthly loan payments, which in turn can help you budget and plan for them. For instance, you’ll factor in such costs as homeowner’s insurance and Mortgage Insurance Premium.
Shopping around for the best interest rate and comparing different loan options may also help you save money on an FHA loan.
SoFi offers a wide range of FHA loan options that are easier to qualify for and may have a lower interest rate than a conventional mortgage. You can down as little as 3.5%. Plus, the Biden-Harris Administration has reduced monthly mortgage insurance premiums for new homebuyers to help offset higher interest rates.
Another perk: FHA loans are assumable mortgages!
FAQ
What are the new FHA limits for 2023?
The FHA’s nationwide limit “floor” and “ceiling” for a one-unit property in 2023 are $472,030 and $1,089,300, respectively.
What is the minimum credit score for FHA in 2023?
For an FHA loan, a minimum credit score of 580 and a down payment of 3.5 percent are required. You can still qualify with a credit score as low as 500 if you can increase your down payment to at least 10%.
How is an FHA loan amount calculated?
The FHA loan amount is calculated by determining the maximum loan size that a borrower qualifies for, which is typically based on the borrower’s income, creditworthiness, and the specific FHA loan program’s guidelines. The loan amount is further influenced by factors such as the property’s appraised value and the FHA’s required loan-to-value ratio.
Photo credit: iStock/ridvan_celik
¹FHA loans are subject to unique terms and conditions established by FHA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. FHA loans require an Upfront Mortgage Insurance Premium (UFMIP), which may be financed or paid at closing, in addition to monthly Mortgage Insurance Premiums (MIP). Maximum loan amounts vary by county. The minimum FHA mortgage down payment is 3.5% for those who qualify financially for a primary purchase. SoFi is not affiliated with any government agency.
Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
SoFi Mortgages
Terms and conditions apply. Not all products are offered in all states. See SoFi.com/eligibility for more information.
*SoFi requires Private Mortgage Insurance (PMI) for conforming home loans with a loan-to-value (LTV) ratio greater than 80%. As little as 3% down payments are for qualifying first-time homebuyers only. 5% minimum applies to other borrowers. Other loan types may require different fees or insurance (e.g., VA funding fee, FHA Mortgage Insurance Premiums, etc.). Loan requirements may vary depending on your down payment amount, and minimum down payment varies by loan type.
SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.
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Source: sofi.com
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Published 3:34 a.m. ET Oct. 24, 2023
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Mortgage rates are trending high across the board. Here are today’s average mortgage rates:
- 30-year fixed: 8.30%
- 15-year fixed: 7.35%
- 30-year jumbo: 8.09%
*Data accurate as of October 23, 2023, the latest data available.
30-year fixed mortgage rates
Today’s 30-year fixed mortgage rate is 8.30% which is higher than last week’s 8.06%, according to data from Curinos. This is a steep increase from last month’s 7.85%. Last year around the same time, 30-year fixed rates were 6.30%, which makes today’s rate much higher than it was a year ago.
At the current 30-year fixed rate, you’ll pay about $756 each month for every $100,000 you borrow — up from about $742 last week.
Ready to buy? Compare the best mortgage lenders
15-year fixed mortgage rates
Today’s 15-year fixed mortgage rate is 7.35%, slightly higher than last week’s 7.21%. This is an increase from last month’s 6.95%. Last year around the same time, 15-year fixed rates were 5.51%, which makes today’s rate much higher than it was a year ago.
At the current 15-year fixed rate, you’ll pay about $920 each month for every $100,000 you borrow, up from about $914 last week.
30-year jumbo mortgage rates
Today’s 30-year jumbo mortgage rate is 8.09% which is higher than last week’s 7.93%. This is an increase from last month’s 7.58%. Last year around the same time, 30-year jumbo rates were 5.81%, which makes today’s rate more than 2 percentage points higher than it was a year ago.
At the current 30-year jumbo rate, you’ll pay around $744 each month for every $100,000 you borrow, up from about $733 last week.
Methodology
To determine average mortgage rates, Curinos uses a standardized set of parameters. For conventional mortgages, the calculations are based on an owner-occupied, one-unit property with a loan amount of $350,000. For jumbo mortgages, the loan amount is $750,000. These calculations assume an 80% loan-to-value ratio, a credit score of 740 or higher and a 60-day lock period.
Frequently asked questions (FAQs)
Mortgage rates are determined by a variety of factors, including the overall economy, inflation and the actions of the Federal Reserve. Mortgage lenders then set their loan rates based on these economic elements.
The rate you’re offered on a mortgage will also depend not only on the lender but also on your credit score, income, debt-to-income (DTI) ratio and other parts of your financial profile.
If you opt for a rate lock, you can typically do so for 30 to 60 days, depending on the lender. In some cases, you might be able to lock in your rate for up to 120 days.
Keep in mind that while some lenders allow you to lock in a mortgage rate for free, you’ll likely have to pay a fee for a longer lock period. This fee generally ranges from 0.25% to 0.5% of your loan amount. You could also be charged a fee if you want to extend the lock period — usually 0.375% of the loan amount.
There are several strategies that could help you qualify for the best mortgage rate, such as:
- Checking your credit: When you apply for a mortgage, the lender will review your credit to determine your creditworthiness as well as your interest rate. In general, the higher your credit score, the lower your rate will be. So before you apply, it’s a good idea to check your credit to see where you stand. If you find any errors in your credit report, dispute them with the appropriate credit bureau to potentially boost your score.
- Comparing lenders: Taking the time to shop around and compare your options from as many lenders as possible can help you find the best deal. In addition to rates, make sure to also consider each lender’s terms, fees and eligibility requirements.
- Improving your credit score: If you have less-than-perfect credit and can wait to apply for a mortgage, it could be worth working to improve your credit beforehand to qualify for better rates in the future. Some possible ways to boost your credit include paying all of your bills on time and aiming to keep your credit utilization (the amount of credit you’ve used compared to your credit limits) on credit cards and lines of credit at 30% or less.
- Reducing debt: Paying down debt could help lower your DTI ratio, which is how much you owe in monthly debt payments compared to your income. Having a lower DTI ratio can make you look like less of a risk in the eyes of a lender, which can result in a lower rate.
- Choosing a shorter repayment term: Lenders typically offer lower rates to borrowers who opt for shorter terms. For example, you’ll likely get a lower rate on a 15-year mortgage compared to a 30-year loan.
Blueprint is an independent publisher and comparison service, not an investment advisor. The information provided is for educational purposes only and we encourage you to seek personalized advice from qualified professionals regarding specific financial decisions. Past performance is not indicative of future results.
Blueprint has an advertiser disclosure policy. The opinions, analyses, reviews or recommendations expressed in this article are those of the Blueprint editorial staff alone. Blueprint adheres to strict editorial integrity standards. The information is accurate as of the publish date, but always check the provider’s website for the most current information.
Source: usatoday.com
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There’s a lot to learn when you’re preparing to buy a home.
First, you’ll need to understand market values to avoid paying too much for your house. In addition, home inspections are vital to uncover any hidden issues before finalizing a purchase.
Furthermore, potential buyers must pay attention to closing costs, ensuring they have sufficient funds for the transaction. Lastly, perhaps the most critical aspect to keep in mind is being aware of current mortgage rates.
For those in the market for a house, even a minor adjustment in the interest rate can substantially change your financial picture and affect how much house you can afford.
This guide will shine a light on the intricacies of securing the best mortgage rate, which could translate into significant savings throughout the life of the loan. A lower rate may even allow you to afford a nicer home for your money.
Step 1: Boost Your Credit Score
A top-tier credit score be your VIP pass to securing the most enticing mortgage rates. But what factors make up your credit scores? And how can you boost yours in a hurry?
- Timely bill payments: The bedrock of a solid credit score, timely bill payments account for 35% of your FICO credit score. Paying your credit card bills and monthly debt payments on time, consistently, boosts your credit scores. On the other hand, missed or late payments reduce your score, and can remain on your credit report for up to seven years, making it harder to get a good interest rate.
- Credit card balances: Having credit cards helps you build credit, which can increase your FICO score. But maintaining a balance lowers it. Aim to keep your utilization ratio, which is the balance in relation to your credit limit, below 30%. An even better practice is paying off the balance in full every month.
- Avoid excessive inquiries: Every time you apply for credit, a ‘hard inquiry‘ is placed on your report. Multiple hard inquiries in a short period can indicate risk to potential mortgage lenders, slightly dropping your score with each one. There’s one caveat here: Inquiries for the same loan type (such as a mortgage or car loan) within a few weeks of each other are counted as one inquiry. The credit bureaus understand you are shopping around for the lowest rates.
- Check your credit reports regularly: Make it a practice to review your credit report from all three bureaus annually. This can help you spot and rectify errors or discrepancies which, left unaddressed, could reduce your credit scores.
Remember, in the eyes of lenders, a higher credit score depicts financial responsibility. Achieving this can translate to potentially thousands saved in interest over the life of your mortgage loan.
Step 2: Increase Your Down Payment
The down payment is more than just the initial chunk of money you put toward your home; it’s a reflection of your commitment to the property. The amount you put down influences how mortgage lenders perceive your loan’s risk.
Take a look at some of the advantages of putting 20% or more down.
- Less borrowing: The more you pay upfront, the less you’ll need to borrow. This reduces your loan-to-value ratio, which can make you a more attractive borrower to lenders.
- Lower rates: Lenders often associate higher down payments with lower risk. A borrower who can afford a larger down payment is seen as more financially stable, thus possibly qualifying for a lower interest rate.
- Avoid private mortgage insurance (PMI): Typically, if you put down less than 20% on a conventional loan, you’ll be required to pay PMI. This insurance protects the lender if you default on your loan. By increasing your down payment to 20% or more, you can bypass this additional cost.
- Future financial flexibility: By paying more upfront, your monthly mortgage payments will be lower, offering you greater financial flexibility in the future. This can be particularly beneficial during unforeseen financial hardships.
While it may be tempting to jump into homeownership with a smaller down payment, putting at least 20% down can lead to substantial savings in the long run and a more favorable loan structure.
Step 3: Consider Buying Mortgage Points
The strategic purchase of mortgage points, also known as discount points, serves as an effective mechanism to lower your mortgage rate. Let’s explore how they work.
What are mortgage points?
A discount point is a form of prepaid interest. One point typically equates to 1% of your loan amount and can decrease your interest rate by a certain percentage, usually around 0.25%.
Should you buy points?
Points can be a costly upfront expense at closing time. It’s important to decide if the future benefits justify the investment. Ask yourself:
- How long do you plan to live in the house?
- How much will you save on your monthly payment?
- How long will it take to break even on the cost of the points?
Your mortgage lender can help you calculate whether buying points makes sense for you. They can provide a breakdown of the costs and savings associated with purchasing points, offering a clearer picture of the potential benefits.
Step 4: Choose the Right Loan Term
Your loan term is more than just a deadline for repaying your mortgage; it determines your interest rate and monthly mortgage payment.
Generally, shorter-term loans, like a 15-year fixed rate mortgage, come with lower interest rates than longer-term ones, like a 30-year mortgage. The reason is simple: lenders face less risk when the borrowed amount is to be repaid over a shorter period.
However, with a shorter term, you’ll have higher monthly payments, since you’re dividing your total mortgage amount over fewer months. You’ll need to balance the allure of a lower rate against the practicality of larger monthly payments.
Before you choose a loan term, assess your current financial situation and your projected future income. Your comfort with the size of the monthly payment, your financial goals, and your age at the end of the term are all factors that should inform your decision.
By understanding these elements, you can select a loan term that best aligns with your financial plans, payment capability, and homeownership goals.
Step 5: Navigate Market Conditions
Understanding and responding to the broader economic landscape is pivotal in securing an affordable mortgage. The U.S. Federal Reserve sets the federal funds rate, which is the rate at which the central bank lends money. The funds rate determines the interest rate for credit cards, loans, and mortgages.
A flourishing economy often triggers an increase in interest rates. The U.S. Federal Reserve has raised rates in recent months to try to stem inflation. However, an economic downturn could cause the Fed to keep rates steady or even reduce rates to stimulate borrowing and spending.
Understanding these principles can offer insight into potential rate fluctuations as you decide whether you want to buy now or wait for rates to drop.
It’s important to research these factors to have an understanding of the market. But you can also seek the guidance of a financial advisor or a mortgage broker. They have expertise in market trends and can provide advice tailored to your circumstances.
Step 6: Leverage First-Time Homebuyer Programs
If you’re navigating the housing market for the first time, there are a plethora of programs tailored to assist you in securing a favorable interest rate. These programs, often government-supported or backed by financial institutions, are designed to make homeownership more accessible. They offer a variety of incentives such as competitive mortgage rates, lower down payment requirements, or even assistance with down payments.
To qualify, you usually need to meet certain criteria, including income limits, purchasing in a designated area, or completing a homebuyer education course. It’s crucial to investigate these opportunities, as eligibility can vary widely between programs and regions.
Tapping into these programs can significantly alleviate the financial strain of homeownership, reducing your mortgage rate, and making the dream of owning a home more achievable and affordable. Research and due diligence are key in identifying and securing these benefits.
Step 7: Compare Multiple Lenders
Actively seeking and comparing options from several lenders can help you secure the most favorable interest rate. Here are three steps to take in your search for the best mortgage rate.
- Know what to compare: Each lender may have unique offerings in terms of mortgage loan options, closing costs, and interest rates. By getting quotes from a minimum of three lenders, you ensure that you have a broad spectrum for comparison, helping you make an informed decision.
- Utilize financial tools: A mortgage calculator is an excellent tool for to evaluate lenders. By inputting the variables of different interest rates, loan terms, and down payment amounts, you can get a clearer understanding of the monthly payment and total cost associated with each loan option.
- Take your time: Don’t rush this step. It’s important to thoroughly review and understand each offer. Remember, a mortgage is a long-term commitment, and the details matter. Choosing the right lender can save you thousands of dollars over the life of your loan.
Step 8: Negotiate Your Mortgage Rate
While it might seem daunting, negotiating your mortgage rate is entirely possible and could result in substantial financial savings. Lenders and mortgage brokers often have some flexibility in the rates and fees they can offer. This is where thorough research and understanding of your own financial health, including your credit scores, debt-to-income ratio, and loan options, can be advantageous.
The more you understand these factors, the more leverage you have during negotiations. A well-prepared negotiation strategy can give you a significant advantage in securing a mortgage rate that suits your financial situation best.
Remember, even a slight decrease in your mortgage rate can result in significant savings over the life of your loan. It’s worth the effort to negotiate terms; it could save you a considerable amount of money in the long run.
Conclusion
Securing the best mortgage interest rate can make your dream home more affordable and save you thousands over the life of the loan. By understanding how different factors like your credit scores, down payment, and loan term affect your rate, you can take steps to secure the best mortgage deal. Remember, a home loan is likely to be one of the biggest financial commitments you’ll ever make, so take the time to get it right.
Frequently Asked Questions
What is the ideal credit score for getting the best mortgage rate?
While credit requirements can vary by lender, a credit score of 740 or higher generally qualifies borrowers for the best mortgage rates. However, it’s still possible to secure a mortgage with a lower credit score, but the rates might be higher.
What’s the difference between a fixed-rate and an adjustable rate mortgage (ARM)?
A fixed-rate mortgage has a constant interest rate and monthly payments that never change. This offers stability and predictability over the life of the loan.
Adjustable rate mortgages have an interest rate that may change periodically, affecting your monthly payments. The rate adjustments are tied to market conditions and specified in the mortgage agreement.
The main difference is that a fixed-rate mortgage offers long-term stability in payments, while an ARM carries the risk of the payments increasing or decreasing over time.
How much can I save by improving my credit score?
The difference in mortgage rates between different credit score ranges can be substantial. For instance, improving your credit score from ‘fair’ (580-669) to ‘very good’ (740-799) could potentially lower your interest rate by a full percentage point or more. Over the life of a 30-year mortgage, this could translate to tens of thousands of dollars in savings.
How much should I save for a down payment?
The amount you should save for a down payment can depend on the type of loan you’re getting and your financial situation. Traditionally, a 20% down payment is recommended for conventional loans, as this allows you to avoid paying for private mortgage insurance (PMI). However, some loan types, such as Federal Housing Administration (FHA) loans, allow for lower down payments.
How do I choose between a 15-year and a 30-year loan term?
The choice between a 15-year and a 30-year loan term depends on your financial circumstances and goals. A 15-year loan typically has a lower interest rate but a higher monthly payment, making it a good choice if you can comfortably afford the payments and want to pay off your mortgage faster. On the other hand, a 30-year loan has lower a monthly payment but a higher interest rate, making it a more affordable option for many buyers.
Is it worth buying discount points to lower my interest rate?
Whether it’s worth buying discount points depends on your particular situation. If you have the cash and plan to stay in your home a long time, buying points can be beneficial. The savings over time from a lower rate can exceed the points’ upfront cost.
What are some examples of first-time homebuyer programs?
First-time homebuyer programs can vary by state and by lender, but some examples include FHA loans, USDA loans, and VA loans, as well as specific state-sponsored programs that offer down payment assistance or tax credits. It’s worth checking with your local government and potential lenders to see what programs might be available to you.
How do market conditions impact mortgage rates?
Mortgage rates are influenced by a variety of market conditions, including inflation rates, economic growth indicators, and monetary policy decisions by central banks. Generally, when the economy is strong, mortgage rates tend to rise to keep inflation in check. Conversely, during economic downturns, rates often fall to stimulate borrowing and investment.
Source: crediful.com
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Adopting a rescue or shelter dog doesn’t just give a needy animal a home. It can provide a playmate for your kids, a jogging buddy for you and a loyal companion for everyone to cuddle with on the couch. But a new pet can also come with unexpected vet bills, which is why you might want to consider pet insurance.
Pet insurance policies can help pay for treatment if your furry friend gets sick or hurt. In some cases, they may also cover vaccinations and other routine care. Here’s how to decide whether pet insurance is right for your rescue dog.
Estimate the cost of vet care
It’s impossible to know which medical problems a given pet may have in the future. However, researching the breeds you’re interested in can help you get a sense of which health conditions are most likely to crop up, says Dr. Antonio DeMarco, chief medical officer at GoodVets, a chain of animal hospitals with locations across the U.S. Some of these conditions can be both serious and expensive to treat, he says.
For example, large-breed dogs like golden and Labrador retrievers are prone to hip dysplasia, a deformity of the hip joint. Some dogs may need surgery to treat it, costing thousands of dollars.
A local vet can advise you on potential health concerns and how much it might cost to manage them. They can also help you estimate the price of routine care.
Understand pet insurance
Pet insurance likely won’t reimburse every dollar you spend at the vet. For example, most plans won’t cover pre-existing conditions that your dog had before you bought the policy. So if you adopt a senior dog with diabetes, you’ll need to pay for the treatment yourself.
For the same reason, you can’t simply wait to get a policy until your vet diagnoses an injury or illness. DeMarco has had pet owners ask him if they can buy insurance after their dog tears an ACL. “[You] sure can, but this isn’t covered,” he tells them.
Most pet insurance plans pay to treat illnesses and injuries but won’t help with routine care unless you buy extra coverage. That coverage may be worth adding for certain dogs, says Maureen Sosa, director of pet support at the Humane Rescue Alliance in Washington, D.C. Smaller dogs are more prone to dental disease and benefit from regular cleanings, which wellness plans can help pay for.
When shopping for pet insurance, check for deductibles and copays. Say your plan will pay 80% of your expenses after you’ve met the $500 annual deductible. That means you’d have to spend $500 on your pet’s treatment in a given year before your plan would start reimbursing you.
Your policy may also have a maximum payout limit, such as $5,000 or $10,000 per year.
Get pet insurance quotes
The average cost of accident and illness coverage for a dog is about $640 per year, according to the North American Pet Health Insurance Association. However, you might pay more or less depending on where you live, the coverage options you choose and the breed and age of your dog.
You can get online quotes from most pet insurance providers. Check rates from at least three companies to make sure you’re getting the best price for the coverage you want.
Pet insurance isn’t worth the cost for every rescue dog. Policies may be prohibitively expensive for older dogs, especially if they already have chronic conditions that the policy won’t cover. In these cases, you may be better off skipping insurance and setting up an emergency fund for vet expenses.
Consider your peace of mind
One of the biggest benefits of pet insurance is avoiding heart-breaking financial decisions. Sosa has seen owners forced to surrender pets because they couldn’t afford to treat their medical conditions. “The economy is in a really bad place,” she says. “That’s trickling down and affecting what people are able to afford.”
Even worse, some owners may have to euthanize their dogs if the treatment for a serious condition is simply too expensive, DeMarco says. “As veterinarians, that is the worst-case scenario for us.”
You may go years without having to use your pet insurance. But in a crisis, having the policy can give you peace of mind, DeMarco says. You’ll know that “if those situations arise, you’re going to be able to handle them financially and not have to make decisions based on finances rather than what’s best for your animal.”
This article was written by NerdWallet and was originally published by The Associated Press.
Source: nerdwallet.com
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If you’re worried that your loved ones would struggle to cover your end-of-life expenses, funeral insurance may be an option. Funeral insurance is a small life insurance policy that’s intended to pay for your funeral, cremation or burial, plus other outstanding expenses such as medical bills.
What is funeral insurance?
Funeral insurance policies are typically capped at low amounts, often between $5,000 and $25,000. The reason the payout — or death benefit — is small is because it’s meant to take care of a specific set of expenses.
Technically, your life insurance beneficiaries can spend the money however they choose. But it’s common to use the death benefit to pay for funeral-related expenses, including:
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Funeral service, including viewing.
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Burial or cremation.
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Medical bills and other debt.
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Probate costs.
Most insurers don’t require a medical exam for funeral insurance. Instead, approval is based on your answers to a health questionnaire. Some burial insurance policies are guaranteed issue policies that will cover any applicant, even if they have major health problems. However, these policies usually come with a two-year waiting period. That means if you die during the first two years that the policy is in force, your beneficiary will only receive a refund of your premiums plus interest instead of the full death benefit.
How much does funeral insurance cost?
As with any life insurance policy, your premiums will vary based on factors like your age, gender, health and tobacco use. For a 50-year-old, a $10,000 burial insurance policy with Lincoln Heritage may cost as little as $25 or $30 a month. But someone who’s 80 could pay monthly premiums as high as $150 to $190 for $10,000 of coverage.
Funeral insurance vs. preneed insurance
Both funeral insurance and preneed insurance are designed to cover final expenses. The key difference is that funeral insurance is a type of life insurance policy, while preneed insurance is a prepaid funeral plan.
You can buy funeral insurance through a life insurance company, while you would purchase a preneed plan directly from a funeral home. Unlike a funeral expense policy, a preneed plan doesn’t pay out to your loved ones when you die. Instead, the money goes to the funeral home — so you’re essentially prepaying for your funeral costs.
The terms of preneed plans vary by funeral home. Some services are guaranteed, which means that even if the costs go up after you purchase the plan, they’ll be covered by the funeral home. However, some services may not be guaranteed, meaning your family could have to pay extra if costs increase.
Source: nerdwallet.com