See what’s special about this city, beyond the stereotypes.
Welcome to Cleveland. Sitting on the shores of Lake Erie, this Midwestern metropolis has a heritage that is proudly showcased through its impressive architecture, world-class museums and so much more. Join us as we explore the nooks and crannies of one of America’s top cities and finally answer the question, what is Cleveland known for?
Cleveland’s quirky, unparalleled culture
Cleveland holds a particular cultural significance in American history. From its early days as a major center for manufacturing and trade to its present-day status as a hub for arts and culture, the city has embraced its past while facing its future head on.
One of the most iconic landmarks in Cleveland is the Rock and Roll Hall of Fame. This legendary museum pays homage to the legends of rock and roll with its extensive collection of artifacts, interactive exhibits and live performances. Visitors can explore the history of rock music, learn about the artists who shaped the genre and get up close and personal with some of the most unique rock artifacts in the world.
Another gem in Cleveland is the Historic Warehouse District. This neighborhood is a testament to the city’s industrial past, with its well-preserved 19th-century brick buildings and cobblestone streets. Today, it’s a hub for dining, shopping and entertaining, with a mix of trendy restaurants, stylish boutiques and lively bars.
Historical landmarks in Cleveland
Cleveland is home to a wealth of historical landmarks that provide a glimpse into the city’s past. One such landmark is Terminal Tower, a towering structure that was once the tallest building outside of New York City. Built in the 1920s, it served as a transportation hub and symbolized the city’s growth and prosperity. Today, it houses offices, shops and restaurants and offers breathtaking views of the city from its observation deck.
Another must-visit is The Cleveland Arcade. Built in 1890, it is one of the oldest indoor shopping malls in the United States. The Arcade’s stunning architecture, with its glass ceilings and ornate ironwork, is a sight to behold. Visitors can wander through its corridors, admire the beautiful craftsmanship and shop at the unique boutiques and cafes that are lucky enough to call the Arcade home.
Exploring Cleveland’s art scene
Cleveland is a haven for artsy folks, with its world-class museums and thriving arts scene. The Cleveland Museum of Art is a must-visit destination for any art enthusiast. With works spanning over 6,000 years and featuring pieces from around the globe, it is one of the most comprehensive art museums in the country.
For those who prefer contemporary art, the Museum of Contemporary Art Cleveland (MOCA) is a must-visit. Located in Little Italy, this cutting-edge museum showcases works by established and emerging artists. Its ever-changing exhibitions and innovative programming make it a gathering place for creatives to experiment.
Cleveland’s music and entertainment industry
Cleveland has a strong music scene, with deep roots in rock and roll, jazz and classical music. The city’s sounds can be experienced at venues like the Beachland Ballroom, a historic concert hall that has hosted countless legendary acts. From local indie bands to international superstars, the Beachland Ballroom offers a diverse lineup of performances that cater to all musical tastes.
Cleveland also boasts a thriving theater and performing arts industry. Historic Playhouse Square is the largest performing arts center outside of New York City and is home to multiple theaters showcasing a wide range of performances, including Broadway shows, ballet, opera and more. Catching a show at Playhouse Square is a must-do for any thespians.
Cleveland’s sports culture
Cleveland is a city that loves its professional sports, and its passionate fan base is a testament to that. The city is home to three major professional sports teams: the Cleveland Cavaliers (NBA), the Cleveland Browns (NFL) and the Cleveland Guardians (MLB). Attending a game at one of these iconic stadiums is an experience like no other, with the energy and excitement of the crowd creating an electric atmosphere.
In addition to professional sports, Cleveland also hosts numerous sporting events throughout the year. The city has hosted the NBA Finals, the World Series and the NFL Draft, and that’s not even to mention Saturdays at The Ohio State University (just over two hours away).
Must-visit attractions in Cleveland
The Cleveland Botanical Garden is a beautiful oasis in the heart of the city, with its stunning gardens, glasshouse and outdoor spaces. Visitors can explore the themed gardens, learn about plant conservation and even participate in educational programs and workshops.
Another must-visit attraction is West Side Market, one of the oldest continuously operating public markets in the country. This bustling marketplace is a foodies’ paradise, with vendors selling everything from fresh produce and meats to artisanal cheeses and baked goods. Exploring the market’s many offerings and sampling the local cuisine is a must-do for anyone with a little room in their stomach.
Dining in Cleveland
Cleveland’s emerging culinary scene has garnered attention in recent years, with a range of restaurants and culinary experiences to be experienced within the city limits. The city is known for its thriving food halls, where visitors can sample a variety of cuisines under one roof. The Van Aken District, located in the suburb of Shaker Heights, is home to a food hall that showcases the best of Cleveland’s culinary talent, from artisanal pizzas to gourmet burgers.
For those looking for a fine dining experience, Cleveland has no shortage of upscale restaurants that offer innovative menus and impeccable service. The city’s chefs are known for their creativity and use of local ingredients, with many establishments focusing on farm-to-table cuisine. From contemporary American fare to international flavors, Cleveland’s dining scene has something to satisfy every palate.
Outdoor activities and natural attractions in Cleveland
Cleveland is also a great destination for outdoor enthusiasts. The city’s location on the shores of Lake Erie provides ample opportunities for kicking back and enjoying all that Mother Nature has to offer. Visitors can take a leisurely stroll along the scenic lakefront, enjoy a picnic in one of the many parks that line the shoreline or even rent a kayak or paddleboard to explore the waters.
For those who prefer to explore nature on land, the Cleveland Metroparks offer a network of parks and trails that span over 23,000 acres. Whether you’re a hiker, cyclist or simply looking for a peaceful nature retreat, the Metroparks have something for everyone. From the picturesque Rocky River Reservation to the sprawling North Chagrin Reservation, these parks offer a respite from the hustle and bustle of the city.
Cleveland should be on your shortlist
After this brief exploration it is clear as day, apartments and homes in Cleveland offer a whole heck of a lot for renters and for those looking to lay down roots and invest in real estate. From its iconic landmarks and world-class museums to its epic music and entertainment scene, there really is something for everyone to enjoy within the city limits.
Whether you’re exploring the city’s many landmarks, immersing yourself in its art scene or indulging in some downright delicious local dishes, Cleveland is sure to captivate and leave a lasting impression. Find your apartment or house for rent now and discover all that Cleveland has to offer you.
See what’s special about this city, beyond the stereotypes.
Welcome to Cleveland. Sitting on the shores of Lake Erie, this Midwestern metropolis has a heritage that is proudly showcased through its impressive architecture, world-class museums and so much more. Join us as we explore the nooks and crannies of one of America’s top cities and finally answer the question, what is Cleveland known for?
Cleveland’s quirky, unparalleled culture
Cleveland holds a particular cultural significance in American history. From its early days as a major center for manufacturing and trade to its present-day status as a hub for arts and culture, the city has embraced its past while facing its future head on.
One of the most iconic landmarks in Cleveland is the Rock and Roll Hall of Fame. This legendary museum pays homage to the legends of rock and roll with its extensive collection of artifacts, interactive exhibits and live performances. Visitors can explore the history of rock music, learn about the artists who shaped the genre and get up close and personal with some of the most unique rock artifacts in the world.
Another gem in Cleveland is the Historic Warehouse District. This neighborhood is a testament to the city’s industrial past, with its well-preserved 19th-century brick buildings and cobblestone streets. Today, it’s a hub for dining, shopping and entertaining, with a mix of trendy restaurants, stylish boutiques and lively bars.
Historical landmarks in Cleveland
Cleveland is home to a wealth of historical landmarks that provide a glimpse into the city’s past. One such landmark is Terminal Tower, a towering structure that was once the tallest building outside of New York City. Built in the 1920s, it served as a transportation hub and symbolized the city’s growth and prosperity. Today, it houses offices, shops and restaurants and offers breathtaking views of the city from its observation deck.
Another must-visit is The Cleveland Arcade. Built in 1890, it is one of the oldest indoor shopping malls in the United States. The Arcade’s stunning architecture, with its glass ceilings and ornate ironwork, is a sight to behold. Visitors can wander through its corridors, admire the beautiful craftsmanship and shop at the unique boutiques and cafes that are lucky enough to call the Arcade home.
Exploring Cleveland’s art scene
Cleveland is a haven for artsy folks, with its world-class museums and thriving arts scene. The Cleveland Museum of Art is a must-visit destination for any art enthusiast. With works spanning over 6,000 years and featuring pieces from around the globe, it is one of the most comprehensive art museums in the country.
For those who prefer contemporary art, the Museum of Contemporary Art Cleveland (MOCA) is a must-visit. Located in Little Italy, this cutting-edge museum showcases works by established and emerging artists. Its ever-changing exhibitions and innovative programming make it a gathering place for creatives to experiment.
Cleveland’s music and entertainment industry
Cleveland has a strong music scene, with deep roots in rock and roll, jazz and classical music. The city’s sounds can be experienced at venues like the Beachland Ballroom, a historic concert hall that has hosted countless legendary acts. From local indie bands to international superstars, the Beachland Ballroom offers a diverse lineup of performances that cater to all musical tastes.
Cleveland also boasts a thriving theater and performing arts industry. Historic Playhouse Square is the largest performing arts center outside of New York City and is home to multiple theaters showcasing a wide range of performances, including Broadway shows, ballet, opera and more. Catching a show at Playhouse Square is a must-do for any thespians.
Cleveland’s sports culture
Cleveland is a city that loves its professional sports, and its passionate fan base is a testament to that. The city is home to three major professional sports teams: the Cleveland Cavaliers (NBA), the Cleveland Browns (NFL) and the Cleveland Guardians (MLB). Attending a game at one of these iconic stadiums is an experience like no other, with the energy and excitement of the crowd creating an electric atmosphere.
In addition to professional sports, Cleveland also hosts numerous sporting events throughout the year. The city has hosted the NBA Finals, the World Series and the NFL Draft, and that’s not even to mention Saturdays at The Ohio State University (just over two hours away).
Must-visit attractions in Cleveland
The Cleveland Botanical Garden is a beautiful oasis in the heart of the city, with its stunning gardens, glasshouse and outdoor spaces. Visitors can explore the themed gardens, learn about plant conservation and even participate in educational programs and workshops.
Another must-visit attraction is West Side Market, one of the oldest continuously operating public markets in the country. This bustling marketplace is a foodies’ paradise, with vendors selling everything from fresh produce and meats to artisanal cheeses and baked goods. Exploring the market’s many offerings and sampling the local cuisine is a must-do for anyone with a little room in their stomach.
Dining in Cleveland
Cleveland’s emerging culinary scene has garnered attention in recent years, with a range of restaurants and culinary experiences to be experienced within the city limits. The city is known for its thriving food halls, where visitors can sample a variety of cuisines under one roof. The Van Aken District, located in the suburb of Shaker Heights, is home to a food hall that showcases the best of Cleveland’s culinary talent, from artisanal pizzas to gourmet burgers.
For those looking for a fine dining experience, Cleveland has no shortage of upscale restaurants that offer innovative menus and impeccable service. The city’s chefs are known for their creativity and use of local ingredients, with many establishments focusing on farm-to-table cuisine. From contemporary American fare to international flavors, Cleveland’s dining scene has something to satisfy every palate.
Outdoor activities and natural attractions in Cleveland
Cleveland is also a great destination for outdoor enthusiasts. The city’s location on the shores of Lake Erie provides ample opportunities for kicking back and enjoying all that Mother Nature has to offer. Visitors can take a leisurely stroll along the scenic lakefront, enjoy a picnic in one of the many parks that line the shoreline or even rent a kayak or paddleboard to explore the waters.
For those who prefer to explore nature on land, the Cleveland Metroparks offer a network of parks and trails that span over 23,000 acres. Whether you’re a hiker, cyclist or simply looking for a peaceful nature retreat, the Metroparks have something for everyone. From the picturesque Rocky River Reservation to the sprawling North Chagrin Reservation, these parks offer a respite from the hustle and bustle of the city.
Cleveland should be on your shortlist
After this brief exploration it is clear as day, apartments and homes in Cleveland offer a whole heck of a lot for renters and for those looking to lay down roots and invest in real estate. From its iconic landmarks and world-class museums to its epic music and entertainment scene, there really is something for everyone to enjoy within the city limits.
Whether you’re exploring the city’s many landmarks, immersing yourself in its art scene or indulging in some downright delicious local dishes, Cleveland is sure to captivate and leave a lasting impression. Find your apartment or house for rent now and discover all that Cleveland has to offer you.
Inside: Learn what 11 an hour is how much a year, month, and day. Plus tips to budget your money. Don’t miss the ways to increase your income.
We are going to under the cover and discover $11 an hour is how much per year.
For most Americans, this is hovering near minimum wage.
Let’s get this straight… This is not a livable wage.
If you are in high school or college and have support from your parents, then this is great spending money for you.
However, if you are making it on your own, $11 per hour will not make ends meet each month.
For most people, being at minimum wage is common and the goal is to make your way up the payscale and quickly!
In this post, we’re going to detail exactly what $11 an hour is how much a year. Also, we are going to break it down to know how much is made per month, bi-weekly, per week, and daily.
That will help you immensely with how you spend your money. Because too many times the hard-earned cash is brought home, but there is no actual plan for how to spend that money.
When living close to minimum wage, you must know how to manage money wisely.
More than likely, you are living paycheck to paycheck and struggling to survive to the next paycheck. Take a deep breath and make this minimum wage just a season.
The ultimate goal is to make the most of your hourly wage with inspirations to make more money.
If that is something you want to do, then keep reading. You are in the right place.
$11 an Hour is How Much a Year?
When we ran all of our numbers to figure out how much is $11 per hour is as annual salary, we used the average working day of 40 hours a week.
40 hours x 52 weeks x $11 = $22,880
$22,880 is the gross annual salary with a $11 per hour wage.
As of June 2023, the average hourly wage is $33.58 (source).
This you are making WAY LESS than the average wage.
Let’s breakdown how that number is calculated
Typically, the average work week is 40 hours and you can work 52 weeks a year. Take 40 hours times 52 weeks and that equals 2,080 working hours. Then, multiply the hourly salary of $11 times 2,080 working hours and the result is $22,880.
That number is the gross income before taxes, insurance, 401K, or anything else is taken out. Net income is how much you deposit into your bank account.
Work Part Time?
But you may think, oh wait, I’m only working part time. So if you’re working part time, the assumption is working 20 hours a week at $11 an hour.
Only 20 hours per week. Then, take 20 hours times 52 weeks and that equals 1,040 working hours. Then, multiply the hourly salary of $11 times 1,040 working hours and the result is $11,440.
How Much is $11 Per Month?
On average, the monthly amount would average $1,907.
Annual Amount of $22,880 ÷ 12 months = $1,907 per month
Since some months have more days and fewer days like February, you can expect months with more days to have a bigger paycheck. Also, this can be heavily influenced by how often you are paid on and on which days you get paid.
Work Part Time?
Only 20 hours per week. Then, the monthly amount would average $953.
How Much is $11 per Hour Per Week
This is a great number to know! How much do I make each week? When I roll out of bed and do my job, what can I expect to make at the end of the week?
Once again, the assumption is 40 hours worked.
40 hours x $11 = $440 per week.
Work Part Time?
Only 20 hours per week. Then, the weekly amount would be $220.
How Much is $11 per Hour Bi-Weekly
For this calculation, take the average weekly pay of $440 and double it.
$440 per week x 2 = $880
Also, the other way to calculate this is:
40 hours x 2 weeks x $11 an hour = $880
Work Part Time?
Only 20 hours per week. Then, the bi-weekly amount would be $440.
How Much is $11 Per Hour Per Day
This depends on how many hours you work in a day. For this example, we are going to use an eight hour work day.
8 hours x $11 per hour = $88 per day.
If you work 10 hours a day for four days, then you would make $110 per day. (10 hours x $11 per hour)
Work Part Time?
Only 4 hours per day. Then, the daily amount would be $44.
$11 Per Hour is…
$11 per Hour – Full Time
Total Income
Yearly (52 weeks)
$22,880
Yearly (50 weeks)
$22,000
Monthly (173 hours)
$1,907
Weekly (40 Hours)
$440
Bi-Weekly (80 Hours)
$880
Daily Wage (8 Hours)
$88
Net Estimated Monthly Income
$1,455
**These are assumptions based on simple scenarios.
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Paid Time Off Earning 11 Dollars an Hour
Does your employer offer paid time off?
As an hourly, close to minimum wage employee, more than likely you will not get paid time off.
So, here are the scenarios for both cases.
For general purposes, we are going to assume you work 40 hours per week over the course of the year.
Case # 1 – With Paid Time Off
Most hourly employees get two weeks of paid time off, equivalent to 2 weeks of paid time off.
In this case, you would make $22,800 per year.
This is the same as the example above for annual salary making $11 per hour.
Case #2 – No Paid Time Off
Unfortunately, not all employers offer paid time off to their hourly employees. While that is unfortunate, it is best to plan for less income.
Life happens. There will be times you need to take time off for numerous reasons – sick time, handling an emergency, or even vacation.
So, let’s assume you take 2 weeks off without paid time off.
That means you would only work 50 weeks of the year instead of all 52 weeks. Take 40 hours times 50 weeks and that equals 2,000 working hours. Then, multiply the hourly salary of $11 times 2,000 working hours, and the result is $22,000.
40 hours x 50 weeks x $11 = $22,000
You would average $88 per working day and nothing when you don’t work.
$11 an Hour is How Much a year After Taxes
Let’s be honest… Taxes can take up a big chunk of your paycheck. Thus, you need to know how taxes can affect your hourly wage.
This is why you always wondering why your take-home pay is so much less.
Also, every single person’s tax situation is different.
On the basic level, let’s assume a 12% federal tax rate and a 4% state rate. Plus a percentage is taken out for Social Security and Medicare (FICA) of 7.65%.
Gross Annual Salary: $22,880
Federal Taxes of 12%: $2,746
State Taxes of 4%: $915
Social Security and Medicare of 7.65%: $1,750
$11 an Hour per Year after Taxes: $17,469
This would be your net annual salary after taxes.
To turn that back into an hourly wage, the assumption is working 2,080 hours.
$17469 ÷ 2080 hours = $8.40 per hour
After estimated taxes and FICA, you are netting $8.40 an hour. That is $2.60 an hour less than what you planned.
This is a very highlighted example and can vary greatly depending on your personal situation. Therefore, here is a great tool to help you figure out how much your net paycheck would be.
$11 an Hour Budget – Example
You are probably wondering can I live on my own making 11 dollars an hour? How much rent can you afford at 11 an hour?
Using our Cents Plan Formula, this is the best case scenario on how to budget your $11 per hour paycheck.
When using these percentages, it is best to use net income because taxes must be paid.
In this example, we calculated $11 an hour was $8.40 after taxes. That would average $1455 per month.
According to the Cents Plan Formula, here is the high level view of a $11 per hour budget:
Basic Expenses of 50% = $728
Save Money of 20% = $291
Give Money of 10% = $146
Fun Spending of 20% = $291
Debt of 0% = $0
Obviously, that is not doable when living so close to minimum wage. So, you have to be strategic on ways to decrease your basic expenses and debt. Then, it will allow you more money to save and fun spending.
To further break down an example budget of $11 per hour, then using the ideal household percentages is extremely helpful.
recommended budget percentages based on $11 per hour wage:
Category
Ideal Percentages
Sample Monthly Budget
Giving
10%
$76
Savings
15-25%
$114
Housing
20-30%
$572
Utilities
4-7%
$114
Groceries
5-12%
$153
Clothing
1-4%
$19
Transportation
4-10%
$114
Medical
5-12%
$191
Life Insurance
1%
$16
Education
1-4%
$10
Personal
2-7%
$29
Recreation / Entertainment
3-8%
$48
Debts
0% – Goal
$0
Government Tax (including Income Taxes, Social Security & Medicare)
15-25%
$451
Total Gross Income
$1,907
**In this budget, prioritization was given to basic expenses. Thus, some categories like giving and saving were less.
Living on $11 Per Hour
Living close to minimum wage can be a very difficult situation.
Is it doable? Probably not for long.
You just have to be wiser (or frugal) with your money and how you spend the hard-earned cash you have been blessed with.
A lot of times when people are making under the minimum wage mark, they feel like they are in this constant cycle that they can never keep up (which completely makes sense it is hard!).
When your thoughts are constantly focused on how you are struggling to keep up with bills and expenses, that is all you focus on.
You need to do is change your money mindset.
This is what you say to yourself… Okay, I am making near minimum wage for now. I have aspirations and goals to increase how much I make. For now, I am going to make sure that I am able to live on my 11 dollars per hour. I’m going to try and avoid debt and payday loans at all costs.
Other Tips to Help You:
Check your minimum wage for your state and city. You might find a higher minimum wage in a nearby city.
Look to living in a lower cost of living area to stretch your money.
Find ways to minimize your basic expenses.
Thrive with a minimalist lifestyle.
Decide if a roommate or moving back with your parents would help.
Bike or walk to work.
In the next section, we will dig into ways to increase your income, but for now, you must focus on living on $11 an hour.
5 Ways to Increase Your Hourly Wage
This right here is the most important section of this post.
You need to figure out ways to increase your hourly income because I’m going to tell you…you deserve more. You do a good job and your value is higher than what your employers pay you.
Even an increase of 50 cents to $11.50 will add up over the year. Even better $12 an hour!
1. Ask for a Raise
The first thing to do is ask for a raise. Walk right in and ask for a raise because you never know what the answer will be until you ask.
If you want the best tips on how specifically to ask for a raise and what the average wage is for somebody doing your job, then check out this book. In this book, the author gives you the exact way to increase your income. The purchase is worth it or go down to the library and check that book out.
2. Look for A New Job
Another way to increase your hourly wage is to look for a new job. Maybe a completely new industry.
It might be a total change for you, but many times, if you want to change your financial situation, then that starts with a career change. Maybe you’re stressed out at work. Making $11 an hour is too much for you and you’re not able to enjoy life, maybe changing jobs and finding another job may increase your pay, but it will also increase your quality of life.
3. Find a New Career
Because of student loans, too many employees feel like they are stuck in the career field they chose. They feel sucked into the job that they don’t like or have the potential they thought it would.
For many years, I was in the same situation until I decided to do a complete career change. I am glad I did. I have the flexibility that I needed in my life to do what I wanted when I needed to do it. Plus I am able to enjoy my entrepreneurial spirit.
4. Find Alternative Ways to Make Money
In today’s society, you need to find ways to make more money. Period.
There is no way to get around it. You need to find additional income outside a traditional nine-to-five position or typical 40 hour a week job. You will reach a point where you are maxed on what you can make in your current position or title. There may be some advancement to move forward, but in many cases, there just is not much room for growth.
So, you need to find a side hustle – another way to make money.
Do something that you enjoy, turn your hobby into a way to make money, turn something that you naturally do, and help others into a service business. In today’s society, the sky is the limit on how you can earn a freelancing income.
5. Earn Passive Income
The last way to increase your hourly wage is to start earning passive income.
This can be from a variety of ways including the stock market, real estate, online courses, book sales, etc. This is where the differentiation between struggling financially and being financially sound happens.
By earning money passively, you are able to do the things that you enjoy doing and not be loaded down, with having a job that you need to work, and a place that you have to go to. And you still make money doing nothing.
Here is an example:
You can start a brokerage account and start trading stocks for $50. You need to learn and take the one and only investing class I recommend. Learn how the market works, watch videos, and practice in a simulator before you start using your own money.
One gentleman started with $5,000 in his trading account and now has well over $36,000 in a year. Just from practice and being consistent, he has learned that passive income is the way for him to increase his income and also not be a slave to his job.
Tips to Live on $11 an Hour
In this last section, grasp these tips on how to live on $11 an hour. On our site, you can find lots of money saving tips to help stretch your income further.
Here are the most important tips to live on $11 an hour. Highlight these!
1. Spend Less Than You Make
First, you must learn to spend less than you make.
If not you will be caught in the debt cycle and that is not where you want to be. You will be consistently living paycheck to paycheck.
In order to break that dreadful cycle, it means your expenses must be less than your income.
And when I say income, it’s not the $11 an hour. As we talked about earlier in the post, there are taxes. The amount of taxes taken out of your paycheck is called your net income which is $11 an hour minus all the taxes, FICA, Social Security, and Medicare is taken out. That is your net income.
So, your net income has to be less than your net income.
2. Living Below Your Means
You need to be happy. And living on less can actually make you happier. Studies prove that less is better.
Finding contentment in life is one thing that is a struggle for most.
We are driven to want the new shiny toy, the thing next door, the stuff your friend or family member got. Our society has trained you that you need these things as well.
Have you ever taken a step back and looked at what you really need?
Once you are able to find contentment with life, then you are going to be set for the long term with your finances.
Here is our story on owning less stuff. We have been happier since.
3. Make Saving Money Fun
You need to make saving money fun. Period.
It could be participating in a no spend challenge for the month.
Check out the 200 envelope challenge (which is doable on your income)
It could be challenging your friends not to go to Target for a week.
Maybe changing your habits and not picking up takeout and planning meals.
Whatever it is challenge yourself.
Find new ways of saving money and have fun with it.
Even better, get your family and kids involved in the challenge to save money. Tell them the reason why you are saving money and this is what you are doing.
Here are 101 things to do with no money. Free activities without costing you a dime. That is an amazing resource for you and you will never be bored.
And you will learn a lot of things in life you can do for free. Personally, some of the best ones are getting outside and enjoying some fresh air.
4. Make More Money
If you want if you do not settle for less, then find ways to make more money. If you want more out of life, then increase your income.
You need to be an advocate for yourself.
Find ways to make more money.
It could be a side hustle, a second job, asking for a raise, going to school to change careers, or picking up extra hours.
Whatever path you take, that’s fine. Just find ways to make more money. Period.
5. No State Taxes
Paying taxes is one option to increase what you take home in each paycheck.
These are the states that don’t pay state income taxes on wages:
Alaska
Florida
Nevada
New Hampshire
South Dakota
Tennessee
Texas
Washington
Wyoming
It is very interesting if you take into account the amount of state taxes paid compared to a state with income taxes.
Also, if you live in one of the higher taxed states, then you may want to reconsider moving to a lower cost of living area. The higher taxes income tax states include California, Hawaii, New Jersey, Oregon, Minnesota, the District of Columbia, New York, Vermont, Iowa, and Wisconsin. These states tax income somewhere between 7.65% – 13.3%.
6. Stick to a Budget
You need to learn how to start a budget. We have tons of budgeting resources for you.
While creating a budget is great, you need to learn how to use one.
You do not have to budget down to every last penny.
You need to make sure your expenses are less than your income and that you are creating sinking funds for those irregular expenses.
Budget Help:
7. Pay Off Debt Quickly
The amount that you pay interest on debt is absolutely absurd.
Unfortunately, that is how many of these companies make their money from the interest you pay on debt.
If you are paying 5% to even 20-21% or higher, you need to find ways to lower that debt quickly.
Here’s a debt calculator to help you. Figure out your debt free date.
Paying off debt fast is your target and main focus. I can tell you from personal experience, that it was not until we paid off our debt that we finally rounded the corner financially. Once our debt was paid off, we could finally be able to save money. Set money aside in separate bank accounts and pay for cash for things.
It took us working hard to pay off debt. We needed persistence and patience while we had setbacks in our debt free journey.
Here are resources now for you to pay off your debt:
Jobs that Pay $11 an Hour
You can always find jobs that pay $11 per hour. Polish up that smile, fill out the application and be prepared with your interview skills.
Job Search Hint: Always send a written follow-up thank you note for your interview. That will help you get noticed and remembered.
First, look at the cities that require a minimum wage in their cities. That is the best place to start to find jobs that are going to pay higher than the federal minimum wage rate. Many of the cities are moving towards this model so, target and look for jobs in those areas.
Possible Ideas:
Cashiers
Back of the house restaurant staff
Landscape Laborer
Retail jobs
Paraeducators at schools
Janitors
Farm help
Warehouse workers
$11 Per Hour Annual Salary
In this post, we detailed 11 an hour is how much a year. Plus all of the variables that can impact your net income. This is something that you can live off.
$22,800
In this post, we highlighted ways to increase your income as well as tips for living off your wage.
Use the sample budget as a starting point with your expenses.
You will have to be savvy and wise with your hard-earned income. But, with a plan, anything is possible!
Try one of these ways to make money quickly to help you in the interim.
Know someone else that needs this, too? Then, please share!!
Did the post resonate with you?
More importantly, did I answer the questions you have about this topic? Let me know in the comments if I can help in some other way!
Your comments are not just welcomed; they’re an integral part of our community. Let’s continue the conversation and explore how these ideas align with your journey towards Money Bliss.
What makes a city a great food city? Well, just like with any dish, it takes the right ingredients, which can vary. Perhaps the city is located in an agriculturally-rich area. Or the city is a diverse melting pot, creating a place for expression and creativity where chefs can share recipes from around the world or experiment with fusion cuisines. It also needs to have well-stocked grocers that carry specialty items.
No matter what, a great food city should be a place where chefs are supported by a population that loves dining out and supporting local restaurants. Whether you’re a chef looking for where to launch your next venture, or a food lover looking for the next big thing, here are the best cities for chefs to practice their craft.
Finding the best cities for chefs
So then, where do chefs thrive? There are different factors to consider, like grocery cost, population size and specialty stores where chefs can source high-quality ingredients. Taking all those into account, here are the ten best cities for chefs.
10. Grand Rapids, MI
While Grand Rapids may not immediately jump off the page as a great dining destination, you’d be surprised. There’s a robust craft brewing scene, top-notch cafes and a range of beloved, non-chain dining options.
Sourcing fish and seafood from the nearby Great Lakes and using area farms for fresh produce, seasonality is key. Chefs can even dine where they shop. They can tuck into fish and chips at fishmonger and restaurant Fish Lads, or grab a bite at the Grand Rapids Downtown Market while also shopping for produce, olive oil or spices.
Groceries are also the most affordable of all the cities in the top ten. Not only do chefs get to experiment with fresh, regional ingredients in Grand Rapids, but it’s extremely affordable to do so.
9. Santa Fe, NM
With its blend of cultural influences, the food scene in Santa Fe is unparalleled in the Southwest. With Native and Hispanic cuisines leading the playbill, an excellent supporting cast of other global offerings like Indian and Italian rounds it out. And lovers of spicy food find themselves falling under the spell of New Mexico’s famed Hatch green chiles, which feature heavily in local cuisine.
Against such a gastronomically diverse background, chefs also have a wide range of markets and grocers to choose from. There are 0.23 specialty grocers and 0.5 markets per 10,000 residents. So with a population of over 85,000, there are options aplenty. And that population, plus robust summer tourism crowds in Santa Fe, are only too happy to support local chefs.
8. Napa, CA
Ah, Napa.
As the seat of California wine country, this town of just over 78,000 would naturally be a great place for chefs to create exceptional meals. With a strong focus on high-end fares like Italian, French and New American, there’s an incredible variety of tastes to try. And experimenting with pairing with local wines is another plus.
The area’s agricultural history and current reputation for viticulture give Napa chefs easy access to locally-grown, fresh foodstuffs at local markets and grocers. With 0.89 markets per 10,000 residents, chefs can find everything from fresh produce to meats at spots like the Oxbow Public Market. There are also 23 non-chain establishments per capita, making it incredibly easy to support the local restaurant community.
7. Conroe, TX
Sitting on edge of Lake Conroe, the 91,000-population town of Conroe is a lakeside slice of country living within driving distance of Houston. As with many smaller towns, community and hospitality are important. So the local dining is heavily focused on family-run, feel-good food and service. Obviously, barbecue is huge here, as well as Mexican.
Chefs have their pick of the litter when it comes to specialty markets and grocers, with 0.54 grocers and 0.21 markets per 10,000 residents. And the cost of groceries is one of the lowest on the top ten list, so chefs in Conroe can prepare excellent food on a reasonable budget.
6. Cincinnati, OH
Cincinnati chili. Reuben sandwiches. Ice cream. Gooey pizza. Tender ribs. If you love big food with big, bombastic flavor, Cincinnati is the place. From regional treasures like Cincinnati-style chili, which is piled on top of spaghetti or hot dogs, to creative riffs on classics like burgers, chefs here love going big.
As a larger city, grocery costs are elevated, but there’s an abundance of markets and grocers. With 0.42 markets per capita and 0.16 grocers, in a city of over 300,000, there’s always something fresh and delicious close by for chefs to work with. From getting meats and produce at Country Farm Fresh Market to finding global flavors and fun at the famed Jungle Jim’s International Market, accessing the best ingredients is never an issue.
Cincinnati also ranks among the top cities with the most non-chain dining establishments in the top 10. So if you’re a chef looking for a place that welcomes bold flavor and never-say-die energy, head to the Queen City.
5. Asheville, NC
Over the past decade, the Blue Ridge Mountains-based Asheville has emerged as North Carolina’s preeminent food city. This scenic mountain hideaway has it all, from excellent craft brews and comforting Southern fare to elevated fine dining. This dedication to authentic food in all its forms has created a restaurant scene with 35 non-chain restaurants per 10,000 residents.
As a food scene that revels in experimentation and pushing the envelope, chefs in Asheville have an environment in which they can creatively grow and thrive. And the local supply options support that as well, with 0.21 grocers and markets per capita. And don’t forget to try that famous North Carolina barbecue!
4. Pensacola, FL
For seafood chefs seeking new stomping grounds, Pensacola, on the far western end of Florida’s panhandle, has enough attributes to crack the top five best cities for chefs. Sitting right on the edge of Pensacola Bay, fresh seafood is always within reach. The local food scene is rich with delicious seafood spots, as well as Southern and global fare.
With 0.94 markets per capita, chefs can head to specialty stores like Joe Patti’s Seafood and Four Winds International Market for both local and far-flung ingredients. And at 54 non-chain restaurants per 10,000 people, there are plenty of options for the nearly 53,000 residents of Pensacola.
3. West Des Moines, IA
Image source: Rent. / Sun Prairie Apartments
Betcha didn’t know just how vital Iowa is to U.S. agriculture. The Hawkeye State is the nation’s biggest producer of eggs, corn and pork. It also produces 14 percent of cattle in the United States, giving us tender flavorful steaks and beef. With such high-quality produce and meat, it’s no wonder chefs and meat lovers can have a field day here.
In West Des Moines, which forms the western edge of greater Des Moines, chefs will find a particularly hospitable environment for their craft. There’s an abundance of specialty grocers to choose from, like Fresh Thyme Market, providing quality meats, produce and other ingredients. Dining-wise, chefs can express themselves at classic steakhouses and casual brewpubs or branch out into other meat-heavy cuisines like Brazilian. There’s also great Mexican and Asian dining to be found in West Des Moines.
2. Marietta, GA
Snagging second-place for best cities for chefs is the 60,867-strong city of Marietta. Sitting northwest of Atlanta, Marietta is home to a hidden gem food scene. There’s something for everyone, from home-style Southern and farm-to-table to traditional Latin American cuisines.
This gives chefs a large playing field, allowing them to carry on the treasured culinary traditions to American diners, craft dishes from around the world or create exciting combos. Shopping is done at established specialty grocers like Cajun Meat Company, and with 1.15 markets per 10,000 residents, there’s plenty to go around.
One caveat: The cost of groceries is the highest of all the cities on the top 10 list.
1. Greenville, SC
The surrounding states must look on South Carolina with envy, as it’s home to two of the South’s best food cities. First, there’s Charleston (one of our best cities for brunch), and then, No. 1 on the list of the best cities for chefs, is Greenville.
This up-and-coming foodie haven has everything from top-tier Southern comfort food to sophisticated fine dining. Chefs can have fun with flavor at casual neighborhood spots, or get creative with elegant plating at high-end restaurants. And while grocery cost is second only to Marietta on this list, the local population is extremely supportive of their dining scene. There are 59 non-chain restaurants per 10,000 residents, so it’s plain to see that the inhabitants of Greenville love dining out and eating well. Here, chefs are sure to find a supportive and loving audience for whatever they want to cook.
The top 50 cities for chefs
Want to expand your cooking and culinary horizons beyond the top ten? There are many other options for chefs to choose from, as you’ll see from the top 50.
Methodology
To determine the best cities for chefs, we looked at all cities with at least 50,000 residents according to the U.S. Census Bureau’s 2019 estimates that had at least one specialty grocer, market and non-chain (local) restaurant. That final list included 386 cities spread all across the country. We then ranked each city by the following factors:
The average cost of groceries: The cost of an average grocery bill in the metro area of each city according to cost of living estimates from the Council for Community and Economic Research.
Specialty markets: Per capita and business density calculations in each city from a list of commercially licensed business data. Specialty markets include ethnic, organic and health food.
Food markets: Per capita and business density calculations in each city from a list of commercially licensed business data. Food markets include butchers and farmers markets.
Local restaurants: Per capita and business density calculations in each city from a list of commercially licensed business data. Local restaurants include all dining establishments that are labeled as non-chain.
Each of these factors was weighted equally, and the cities with the best overall score were determined to be the best cities for chefs.
Editor in Chief Sarah Wheeler sat down with Matt VanFossen, CEO of Absolute Home Mortgage and Mortgage Automation Technologies, to talk about his unique view of the housing ecosystem and how it influences how he builds technology. Van Fossen not only heads a mortgage lender and a tech company, but is the president of the Mortgage Bankers Association of New Jersey and a board member of the Community Home Lenders of America.
Sarah Wheeler: You wear a lot of hats. How do all those different roles influence the technology you build?
Matt VanFossen: We build technology not only to sell but that we want to use. That culture resonates throughout our company and into our product lines. A differentiating factor of our tech is that lots of point of sale systems are built to faciitate loan officers with the business they already have. While we do that, we’re also focused on driving new business — from new clients but also from the relationships they already have.
We are focused on compliance and data capture at the top of the funnel, so we look at: how do we introduce loan officers not only to new technology, but to new business opportunities?
SW: What does that look like in very practical terms?
MVF: We realized that we needed to focus on the real estate agents our loan officers work with. Over the past 10 years, loan officers have become accustomed to forwarding their application right to the referral and taking the app, but what about their real estate agent counter-parties? Right now LOs have to go and remind agents and constantly be in front of them asking about referrals.
But a real estate agent has a limited amount of resources for elevating their referral. They might be driving down the road when they get a call or text message. Then they have to take whatever information they got and manually enter into their CMS. So we recoded the point of sale system so we can partner with agents on software. Now they have their own online application, but it’s not an application for a mortgage — it’s an application to buy or sell a house.
And now, anytime the agent uses those workflows, the loan officers are privy to that information. LOs can easily go in and see if they need to be preapproved and do that from their phone. So we reverse-engineered a lot of what we’ve built for loan officers and applied it to agents.
We basically created a massive collaboration system. From the first point of contact the customer has with the agent, they are being introduced to a digital ecosphere and they can remain in sthe ame portal all the way through the transaction. It’s the same portal to sign docs, eClose, get servicing information, even post-closing information. And if they ever need to apply for a new mortgage or refinance, they’re still living inside that port. So we’re keeping our customer from the first point of interaction all the way till the end of the real estate transaction and for the remainder of their lives inside of a single ecosphere.
SW: What was the “aha” moment that led to this development?
MVF: I hang out with a lot of LOs and agents, just in a social context, so the aha moment came when I was on a trip with friends. One is an agent and the other is an LO, and they both had to step away from the table like four different times, and I realized that the agent was getting new client referrals and had to pass that back to their team manually. I had completely missed this — that real estate agents don’t have an online application. An LO can text the link to their application portal, but not the agent. I realized we’ve been focusing for a decade on how to streamline this process for LOs but had abandoned our counterparties.
Because of my positions at a tech company, a mortgage company and in regulatory compliance, I have a view into all three points of this triangle — and I have developers that can go build it! Sitting on top of all three at the same time, I can see how they are all intimately intertwined, and I can test it with my own lender. I’m a user of this tech so I’m the mad scientist that’s experimenting on himself! I can jump in and code something, call an agent to have them come in and see it, then use with my own clients first. Then we can think about the enterprise version. It’s almost farm-to-table programming.
SW: So does that mean you only build versus buy?
MVF: No, because there are differet platforms that have some amazing features. We will build over buy in certain things but you can’t take over everything. We have some fabulous vendor tech partners in this industry. We’re focused on point of sale because it gives us control over the loan officer and agent and client experience, so we want to be in the driver’s seat for that.
But even with that mini-POS for agents, it’s not a full-blown CRM and they still need to use their CRM vendors, who will be better at journey campaigns, for example. And we work with awesome loan origination systems like Encompass to maintain compliance and a database. We can’t conquer every avenue so for us it’s about strategy and where we can get the biggest lift with our own tech and then shop the marketplace for strategic partners.
SW: What keeps you up at night? Security?
MVF: I am constantly thinking about this and how I’m not only responsible for cybersecurity for my various companies but also now my point of sale. But we’re very unique and the architecture we built for it was not possible more than a year ago. So rather than having two databases — one POS database where people apply online and then that application goes into another database where you hold that PII inside of it, and you synch those through an API — we don’t do it that way. We have single source of truth.
When an application comes in, or any of the Realtor referrals come in, they all get logged immediately into ICE’s Encompass. We don’t have a database — it all instantaneously, through an encrypted API transaction, as soon as the application hits it goes into Encompass. So there’s only one place and location and all of the loan data resides in that. So we are now more secure than ever because ICE has phenomenal information security. So what we do is put a customization layer on top of it. It’s a highly configurable, easy-to-use user interface that shares a database, rather than maintaining two databases. And that solves a lot of cybersecurity issues.
The other thing that keeps me up is mortgage rates and when we’ll see quantitative easing. What the industry really needs is to get some tailwind into the market.
When you look at the three things I’m involved in — I’m running a lender, I’m running a FinTech and I’m in advocacy. What solves all of that is a little bit lower interest rates. That will strengthen the housing market and make sure that independent mortgage bankers have stability in extremely volatile times. That ensures the tech company will continue to innovate, and all of those things together is going to help consumers, especially low to moderate income consumers.
Renting in Seattle? Discover the most affordable Seattle suburbs to live in 2024.
With the Space Needle soaring, Olympic Mountain looming and a buzzing city coming to life, there are more than a few reasons to settle down in Seattle. If you’re new to the city you may be wondering, how much does rent cost in Seattle? The average monthly rent prices are $1,422 for a studio, $2,145 for a one-bedroom unit and $2,991 for a two-bedroom unit. However, these prices may not fit your budget.
If you’re looking for a more affordable alternative in the Emerald City, you’re in the right place. Below, we’ll explore 12 of the most affordable Seattle suburbs, where you can still enjoy the Pacific Northwest charm without breaking the bank. From scenic landscapes to tight-knit communities, these economical enclaves are budget-friendly ways to enjoy the stunning beauty of the Puget Sound region.
Average rent for a one-bedroom: $1,450
Average rent for a two-bedroom: $2,218
Distance from Seattle: 17 miles
Apartments for rent in Des Moines
Claiming the first place on our list of affordable Seattle suburbs is Des Moines. Only about 17 miles south of Seattle, you’re just a short distance from the city center. You’ll also save close to $700 monthly on rent if you’re planning to lease a one-bedroom apartment.
There are plenty of things to do in Des Moines. For example, you can explore Saltwater State Park along the shores of Puget Sound or spend the afternoon checking out the sea life at MaST Center Aquarium.
Average rent for a studio: $1,275
Average rent for a one-bedroom: $1,522
Average rent for a two-bedroom: $1,765
Distance from Seattle: 11 miles
Apartments for rent in Tukwila
Just 11 miles south of Seattle is our second suburb, Tukwila. The area is home to about 21,600 residents. The average rents are also much less than in Seattle. For example, a one-bedroom unit in Tukwila costs $1,522 compared to $2,145 in Seattle.
Tukwila is home to the Museum of Flight, an expansive museum with over 175 aircraft and plenty of displays, giving you plenty to explore. You can also visit the sprawling Southcenter Mall, which houses plenty of options for shopping, dining and killing a few hours in the middle of the day.
Average rent for a studio: $1,699
Average rent for a one-bedroom: $1,560
Average rent for a two-bedroom: $1,845
Distance from Seattle: 20 miles
Apartments for rent in Kent
As a renter searching for affordability, you might want to consider Kent. It’s a fantastic suburb located about 20 miles south of Seattle. The average rent for a one-bedroom unit is about $600 less than in Seattle.
In Kent, you can easily explore the scenic Green River Natural Resources Area, which has walking and biking trails that are perfect for enjoying the picturesque riverbanks. Kent is also home to the ShoWare Center, a popular venue for hockey games, concerts and more.
Average rent for a studio: $1,595
Average rent for a one-bedroom: $1,604
Average rent for a two-bedroom: $1,600
Distance from Seattle: 28 miles
Apartments for rent in Auburn
A bit farther from Seattle you’ll find Auburn, which is around 28 miles to the south. Auburn is an affordable suburban alternative to much of the surrounding area. The slightly longer commute might be a trade-off worth considering as the average rent is considerably less.
There’s plenty to do in Auburn, like exploring Game Farm Wilderness Park, where you can camp and explore the trails. You can also check out Emerald Downs, a great racing track to kick back and watch the ponies fly.
Average rent for a studio: $1,215
Average rent for a one-bedroom: $1,621
Average rent for a two-bedroom: $1,913
Distance from Seattle: 24 miles
Apartments for rent in Federal Way
About 24 miles away from downtown Seattle is Federal Way, another great suburb for renters to consider. Home to 99,000 residents, Federal Way is an excellent option for renters looking for a less busy city – and more affordable rent prices.
Federal Way supports a range of activities, including the Pacific Bonsai Museum, where you can admire a stunning collection of bonsai trees from around the world. You can explore Dash Point State Park, where you’ll find a beach, hiking trails and waterfront views. The city is also home to the Wild Waves Theme & Water Park, which provides thrilling rides and water slides, perfect for a family day in the heat of the summer.
Average rent for a studio: $1,950
Average rent for a one-bedroom: $1,651
Average rent for a two-bedroom: $1,852
Distance from Seattle: 30 miles
Apartments for rent in Everett
Securing the sixth spot on our list, Everett is a familiar Seattle suburb. This area is home to roughly 110,800 residents, making it feel much more city-like than many of the other towns featured in this article.
Everett is home to the Boeing Future of Flight Aviation Center, where you can take tours and learn about the aviation industry’s history and innovation. For outdoorsy types, Jetty Island, a sandy beach destination perfect for kiteboarding and kicking back by the beautiful Puget Sound, is a must-see.
Average rent for a one-bedroom: $1,722
Average rent for a two-bedroom: $2,250
Distance from from Seattle: 15 miles
Apartments for rent in Mountlake Terrace
Claiming the seventh spot on our list of renter-friendly Seattle suburbs is Mountlake Terrace. It’s only about 15 miles north of downtown, making it a great option for daily commuters.
While a smaller city, there is plenty to do in Mountlake Terrace. You can take a quick trip to the serene Ballinger Park, full of walking trails, a lake, picnicking and more. For a taste of local culture, you can visit Mountlake Terrace Pavilion, which hosts a ton of events and activities throughout the year.
Average rent for a studio: $1,672
Average rent for a one-bedroom: $1,930
Average rent for a two-bedroom: $2,119
Distance from Seattle: 12 miles
Apartments for rent in Burien
If you’re a longtime Seattle resident, then you probably know about Burien. In Burien, one-bedroom units generally rent for $1,930 and two-bedroom units are available for around $2,119, providing considerable savings compared to Seattle.
If you’re wondering what to do in Burien, you can explore Seahurst Park, which has gorgeous tidepools and scenic waterfront views. Burien’s bustling downtown area offers a stellar food scene with lots of restaurants, making it a great destination for foodies looking to expand and refine their palettes.
Average rent for a studio: $1,894
Average rent for a one-bedroom: $1,974
Average rent for a two-bedroom: $2,200
Distance from Seattle: 18 miles
Apartments for rent in Edmonds
Edmonds is home to about 42,700 people and is just a bit over 17 miles north of downtown Seattle. Located along Puget Sound, living in Edmonds means you’re never far from the water and the many activities that come with it. You can explore Edmonds Beach and Brackett’s Landing North, or simply enjoy stunning sunset views over Puget Sound.
The town is also known for its strong arts community, with plenty of art galleries and the Edmonds Center for the Arts, providing a variety of events for artsy folks to enjoy.
Average rent for a studio: $1,710
Average rent for a one-bedroom: $2,000
Average rent for a two-bedroom: $2,620
Distance from Seattle: 14 miles
Apartments for rent in SeaTac
Ranking 10th on our list of affordable Seattle suburbs for apartment hunters is SeaTac. This suburb has a population of 30,700 and is roughly 14 miles south of Seattle.
SeaTac is most well-known as home to the SeaTac International Airport, but there’s plenty to do on an afternoon or weekend. You can explore Angle Lake Park, which boasts a scenic lake stocked for fishing and ideal for boating, making it a great spot for nature lovers of all persuasions. The city also provides convenient access to the Light Rail, allowing making trips into downtown Seattle a breeze.
Average rent for a studio: $1,877
Average rent for a one-bedroom: $2,039
Average rent for a two-bedroom: $2,662
Distance from Seattle: 20 miles
Apartments for rent in Bothell
Bothell is the 11th suburb on our list. You’ll find Bothell about 20 miles northeast of Seattle. Commute times can vary depending on bus routes and traffic, but you’ll still save significantly on rent costs.
Bothell is home to beautiful Bothell Landing Park, a picturesque spot along the Sammamish River with walking trails, a historical museum and a tranquil setting for soaking up the Seattle sun. Beyond that, the McMenamins Anderson School, a historic schoolhouse turned into a unique entertainment complex, offers dining, bars, a movie theater and a pool, making it a great spot to start or end a night on the town.
Average rent for a one-bedroom: $2,050
Average rent for a two-bedroom: $1,915
Distance from Seattle: 7 miles
Apartments for rent in Mercer Island
Taking the 12th and final spot on our list of renter-friendly, affordable Seattle suburbs is Mercer Island. Primarily known for its luxurious homes, its rental prices are surprisingly more budget-friendly than one might expect. On average, you’ll save about $100 a month renting a one-bedroom unit or about $1,000 for a two-bedroom unit. It’s also commuter-friendly, as Mercer Island is a mere 7 miles from Seattle’s city center.
The area is surrounded by the shimmering waters of Lake Washington, offering opportunities for boating, swimming and lakeside relaxation at Luther Burbank Park. The town is also known for its scenic parks and large green spaces, making it an ideal area for renters seeking a peaceful escape from city life without fully cutting the tether to urban conveniences and entertainment.
Remember, if you’re looking to hop over from renter to buyer, make sure to also check out the most affordable Seattle suburbs to buy a home.
Methodology
Affordability is based on whether a suburb’s one and two-bedroom rent was less than Seattle and under 30 miles from downtown Seattle. Average rental data from Seattle rental market trends on October 26, 2023. Population data sourced from the United States Census Bureau.
While the economy continues to expand and added 2.7 million jobs in 2023, signs point to a normalization in the labor market as job growth is expected to moderate in 2024. MORE
While mortgage rates have moved sideways since mid-December, housing continues to be impacted by higher mortgage rates with total home sales on track to be the lowest since 2012. MORE
Facing higher borrowing costs, borrowers are paying more discount points to buy down their mortgage rate, but they may not be getting the benefit. MORE
Recent developments
U.S. economy: According to the latest estimate of U.S. economic growth for Q3 2023, the economy grew at a seasonally adjusted annualized rate (SAAR) of 4.9%, slightly slower than the second estimate but still the fastest since Q4 2021— and among the fastest growth in the last 20 years. Consumption spending growth was revised down from a SAAR of 3.6% in the second estimate to 3.1% in the final estimate. This was mainly led by a decline in spending on services but remained the largest contributor to growth at 2.1 percentage points. After nine consecutive quarters of negative growth, residential investment growth came in much stronger than the initial estimates at a SAAR of 6.7%.
The labor market remained much stronger than expected in 2023 and defied expectations of a slowdown. The economy added 216,000 jobs in December, bringing the total jobs added in 2023 to 2.7 million.1 While total jobs added in 2023 was lower than the historical highs of 2021 and 2022, job growth was still remarkable given the high interest rate environment the economy faced. The unemployment rate remained unchanged in December at 3.7% compared to November 2023, but moved up 0.3 percentage points over the year.
While job growth remained significant over the year, some indications of a softer labor market are starting to creep in. The labor force participation rate as well as employment to population ratio decreased 0.3 percentage points over the month to 62.5% and 60.1% respectively. Downward revisions to October and November job growth meant the 3-month average job gain in the fourth quarter of 2023 was the lowest since the third quarter of 2019, if we exclude the 2020 recession. However, the torrid pace of job growth was unlikely to be sustained and employment growth is approaching levels consistent with a balanced labor market. Heading into 2024, we might see a moderation in job growth, which would be more consistent with long-run growth in the U.S. labor force. Job openings edged down slightly to 8.8 million in November 2023, according to the Bureau of Labor Statistics (BLS) Job Openings and Labor Turnover Survey. The ratio of job openings to unemployed, a metric that the Federal Reserve has been tracking to gauge the strength of the labor market, declined from a high of around 1.8 in January 2023 to 1.4 in November.
Inflation continues to trend towards the Federal Reserve’s target rate of 2%. The preferred measure of inflation of the Federal Reserve, the Core Personal Consumption Expenditure (PCE) measure increased at a rate of 3.2% year over year, the smallest annual increase since May 2021.2 While inflation has been moderating as the labor market normalizes, a reacceleration of home prices along with still high average hourly earnings growth at 4.1% year over year, could mean that getting to the 2% target might take longer than expected.
U.S. housing market: The housing market felt the impact of higher rates in 2023 with total annual home sales on track to be the lowest since 2012. Total (existing and new) home sales reached 4.4 million units in November 2023, down 1.2% as compared to October 2023 and 6.2% below November 2022. Total home sales averaged around 4.8 million from January through November 2023. Existing home sales were at 3.8 million as of November 2023 and averaged 4.1 million through November 2023.3 The existing housing inventory grew 15.3% year to date in November but the level of inventory (1.1 million homes available for sale in November) remains extremely low by historical standards.4 The rate-lock effect, which was the main driver of the lack of existing inventory, continued to push buyers towards the new home market. The number of new homes available for sale increased 2.7% year-to-date and was up 2.5% from the previous month. Overall, the sales of new homes averaged 666,000 in 2023 as compared to 637,000 in 2022.5
Falling interest rates have spurred the confidence of both potential homebuyers as well as the homebuilders. The Housing Market Index, which had decreased since August increased in December 2023. While existing home sales increased in November, pending home sales for November were still weak and saw a 5.2% decrease from the previous year. The FHFA Purchase-Only Home Price Index indicated that as of October of 2023, home prices rose 6.1% year to date, and as more home buyers enter the market amidst the lack of inventory, the pressure on prices could increase further.
U.S. mortgage market: Mortgage rates were on an upward trajectory for most of 2023, reaching 23-year highs in October. However, since the last week of October, rates have been declining mainly on the expectation of rate cuts by the Federal Reserve along with easing inflationary pressures. The average 30-year fixed-rate mortgage, as measured by Freddie Mac’s Primary Mortgage Market Survey® (PMMS®), fell almost one percentage point from the last week in October through mid-December. Despite the decline in recent weeks, mortgage rates are 13 basis points higher than they were at the beginning of the year. Mortgage activity also declined with purchase applications down almost 12% in 2023 and total applications down 7% even as refinance applications increased 15% over the year.6
Tighter financial conditions and higher overall interest rates are starting to impact mortgage delinquency rates. Total mortgage delinquency rates were up 0.25 percentage points from 3.37% in Q2 2023 to 3.62% in Q3 2023 according to the MBA’s National Delinquency Survey. The delinquency rate on conventional mortgages increased from 2.29% to 2.5% in Q3 2023 while the delinquency rate of VA loans was up from 3.7% to 3.76% over the same period. The largest increase was in the delinquency rate of FHA loans which increased 0.55 percentage points from 8.95% in Q2 to 9.5% in Q3. Interestingly, serious delinquency rates (90+ DQs) went down across the board between Q2 and Q3. Foreclosure starts increased from 0.13% in Q2 to 0.19% in Q3 2023 but remain low compared to its historical average.
Outlook
The U.S. economy exhibited tremendous resilience last year on strong consumer spending. We expect economic growth to slow this year as consumer spending starts to fade. Under our baseline scenario, with a slowing economy, the unemployment rate will see a modest uptick, and inflation will continue to moderate.
With inflation remaining above the Federal Reserve’s target rate of 2%, we do not expect the Federal Reserve to start cutting the federal fund rates immediately. However, it will continue to pause on interest rate hikes. We expect rate cuts in the second half of the year if the job market cools off enough to keep inflation muted. Under this scenario, we expect mortgage rates to ease throughout the year while remaining in the 6% range.
Falling rates will breathe some life into the housing market with some recovery in home sales. However, home sales are expected to grow only modestly due to a lack of inventory in the market. The demand for housing, however, will remain high based on a large share of Millennial first-time homebuyers looking to buy homes, which will push home prices up. We forecast home prices to increase 2.8% in 2024 and 2.0% in 2025 nationally.
Under our baseline scenario, we expect increases in both purchase and refinance volumes this year and into 2025. On purchase originations, higher home sales and growth in home prices will drive the dollar volumes of purchase originations up. However, we do not expect purchase origination volumes to reach the levels seen in 2021 and 2022 as lack of inventory will limit home sales. The drop in mortgage rates will push refinance originations up, as buyers who obtained higher interest rates in 2023 will likely refinance into lower rates. However, rates remaining around the 6% range will not provide enough refinance incentives to millions of homeowners who currently have rates below 6%. And therefore, we expect refinance volume to grow only modestly this year. Overall, we forecast total origination volumes to improve this year and into the next.
January 2024 SPOTLIGHT:
Declining affordability led borrowers to pay more discount points to buy down rates, but our research suggests it may not be worth it
Mortgage rates, as measured by Freddie Mac’s PMMS®, increased significantly in 2023 compared to the record lows of the past few years. On October 26, 2023, the average 30-year fixed-rate mortgage stood at 7.79%, a 23-year high. Since then, mortgage rates have moderated, but remain high by recent historical standards. These higher mortgage rates led many borrowers to make the decision to pay points in order to lower the rate when purchasing a house or refinancing an existing mortgage. During the low interest rate environment, few borrowers opted to pay discount points when obtaining a mortgage, but as rates started creeping up in the early 2022, we saw more borrowers paying discount points to lower their rate.
Using Freddie Mac closing data, we examined how often borrowers pay discount points and how many points they pay. For this analysis, the points we are focusing on are for permanent interest rate reductions throughout the life of the loan.7 To that end, we looked at a borrower profile that roughly matches our PMMS® population: mortgage for a home purchase or refinance of a one-unit, single-family owner-occupied property with a fully amortizing 30-year fixed-rate mortgage. We further restricted our sample to borrowers with conforming loans, and with credit scores 740 or above and a loan-to-value (LTV) ratio between 75 and 80 (inclusive).
We found that the share of borrowers who paid discount points increased in 2023 (Exhibit 1). For example, about 58.8% of purchase mortgage borrowers paid discount points in 2023, compared to 31.3% and 53.6% of purchase borrowers in 2021 and 2022 respectively. The share paying discount points was higher for noncash- out and cash-out refinance borrowers, 59.9% and 82.4%, respectively. Also, conditional on paying points, refinance borrowers tended to pay much higher points: 0.99 points for purchase borrowers compared to 1.16 and 1.76 points for non-cash-out and cash-out refinance borrowers, respectively.
It is interesting to note, however, that the interest rate differential between borrowers who pay discount points and those who do not pay discount points is very small. Through November 2023, the average effective rate on purchase loans for borrowers who did not pay discount points was 6.69% versus 6.86% for those who did pay points. This result seems to suggest that paying discount points may not be worth it from the consumers’ point of view. Indeed, some academic research8 has shown that in many circumstances paying discount points can be a poor financial decision. However, while our tabulation shows that borrowers who do not pay points generally receive lower mortgage rates compared to similar borrowers who do pay points, we do not control completely for borrower observed and unobserved attributes. Therefore, we cannot say with certainty that for any particular borrower, the relationship between discount points paid and interest rate is negative.9
Exhibit 2 compares the quarterly average discount points paid by Freddie Mac borrowers (home purchase, owner occupied, one-unit properties). From 2018 through 2021, borrowers that matched the PMMS® profile, (borrowers with origination LTV between 75 and 80 and FICO score 740 or higher) paid about the same average amount of points compared to all purchase borrowers. Starting in 2022 and continuing through 2023, higher credit quality borrowers tended to pay fewer points compared to all borrowers. In 2023, borrowers that matched the PMMS® profile paid on average about 0.06 less points or about 10% less compared to all purchase borrowers.
Prime borrowers who pay discount points on average have higher incomes and are obtaining higher loan balances when purchasing a home compared to borrowers who do not pay points. For example, in 2023 the average loan amount for purchase loans with points paid at origination was $360,000, compared with an average loan amount of $370,000 for mortgages where the borrowers did not pay points. In 2023, the average annual income of a “no discount points” borrower was $148,000, higher than the $140,000 average annual income for borrowers who paid points.
Our analysis on the closing files data shows that there is a difference in borrower behavior across the U.S. when it comes to paying discount points and origination fees. For example, in 2023 over 70% of prime purchase borrowers in HI, NM, WV, OR, WA, and DE paid discount points when closing on their mortgage while less than 50% of borrowers paid discount points in VT, IA, MA, IL, NE, ND, and WI. Exhibit 3 below shows the breakdown by state in 2023.
Our analysis shows that mortgage borrowers in 2023 were more willing to pay discount points than in previous years, and that the likelihood of paying points was greater for lower credit quality borrowers compared to the high-quality mortgage borrowers captured in our PMMS® profile population. We also saw that borrowers in the Midwest were less likely to pay points compared to borrowers in the Pacific and Mountain West. If interest rates stabilize in 2024, it will be interesting to observe whether borrowers opt to pay fewer points, or if the recent uptick in paying discount points is a more permanent shift in the mortgage market.
Footnotes
1 Non-Farm Employment, Bureau of Labor Statistics
2 BEA
3 National Association of Realtors (NAR)
4 From January 1999 through December 2019 the average number of existing homes available for sale averaged 2.2 million, about double the number of homes available for sale in November 2023.
5 U.S. Census Bureau and U.S. Department of Housing and Urban Development
6 Mortgage Bankers Association (MBA)
7 For an analysis of temporary buydowns see our previous Research Brief: https://www.freddiemac.com/research/insight/20230731-temporary-mortgage-rate-buydown-activity-spiked-in.
8 See for example: Agarwal, S., Ben-David, I. and Yao, V., 2017. Systematic mistakes in the mortgage market and lack of financial sophistication. Journal of Financial Economics, 123(1), pp. 42-58.
9 For a more detailed analysis see: Mota, N., Palim, M. and Woodward, S., 2022. Mortgages are still confusing… and it matters—How borrower attributes and mortgage shopping behavior impact costs. Fannie Mae Working Paper. https://www.fanniemae.com/media/45841/display
Welcome to scenic Minnesota, a place associated with friendly faces (Minnesota nice is a thing, after all), icy winters and, of course, its famous moniker, the “Land of 10,000 Lakes.”But look beyond the serene lakes and snow-piled streets, and you’ll uncover a state teeming with stories, natural splendors, a thriving food scene and an entertainment ecosystem as varied as the state’s clearly defined four seasons.
But what is Minnesota known for, beyond the stereotypes? We’re inviting you on a journey through Minnesota, exploring what makes this northern state such a unique and enticing place to visit or call home. From the bustling streets of the Twin Cities to the tranquil trails of its many state parks, Minnesota is an exciting collection of experiences waiting to be discovered.
History
Minnesota’s story began long before it became known for its stocked lakes and scores of friendly folks. Originally inhabited by indigenous tribes like the Dakota and Ojibwe, Minnesota was a place known for its natural resources and cultural heritage. European exploration and fur trading marked the initial European influence in the 17th century, with French explorers being the first Europeans to land here. Initially part of the Louisiana Purchase in 1803, this area slowly evolved with the establishment of trading posts and small settlements.
Minnesota’s path to statehood was marked by significant events like the construction of Fort Snelling in the early 19th century and the pivotal role it played in regional trade and military affairs. The mid-19th century saw a surge in population growth following treaties with Native American tribes and the official establishment of Minnesota as the 32nd state in 1858.
As the 20th century unfolded, Minnesota witnessed remarkable transformations, shaping it into the state we all know and admire today. The discovery of iron ore in the Mesabi Range turned the state into a national leader in iron production, fueling a noteworthy industrial boom. Agriculture flourished in the fertile plains, making Minnesota a key player in America’s breadbasket. The Twin Cities, Minneapolis and St. Paul, emerged as desirable hubs, driven by industries like milling, timber and later, technology and healthcare.
The progressive spirit of the state, seen in its early adoption of innovative social and economic policies, has continued to define Minnesota. Today, the state is celebrated not only for its economic contributions but also for its commitment to education, environmental stewardship and prioritization of overall quality of life.
Employment
Minnesota stands as an economic powerhouse in the Midwest. The state’s employment scene is as diverse as its weather patterns, ranging from the bustling Twin Cities to the majestic Iron Range. Anchoring the state’s economics are industries like healthcare, retail and technology, with major players like Mayo Clinic and Best Buy calling Minnesota home. Minnesota is also a leader in food production, with giants like Cargill and General Mills rooted here. Beyond that, Minnesota’s commitment to innovation is evident in its emergence in tech and engineering, buoyed by a highly educated workforce emerging from its esteemed universities and colleges.
Five of the largest employers in Minnesota
For job seekers, the “Land of 10,000 Lakes” provides more than just picturesque landscapes; it’s a land brimming with professional possibilities. Minneapolis and St. Paul, serve as the economic engine, with a ton of opportunities in finance, education and creative fields. Beyond the metro area, regions like Duluth and Rochester are not just scenic escapes but also epicenters for healthcare and education, thanks to institutions like the University of Minnesota and Mayo Clinic. The state’s dedication to environmental sustainability spurs jobs in green energy and conservation, making it an attractive destination for those passionate about the planet.
Entertainment
Minnesota is full of entertainment options that cater to darn near every taste and interest. For those seeking a blend of shopping and leisure, the Mall of America in Bloomington is more than just a shopper’s paradise; it’s a world in itself with an indoor amusement park, aquarium and countless restaurants and storefronts. The state’s musical prowess, epitomized by the legendary Prince, continues to thrive here.
Theatergoers are in for a treat with the renowned Guthrie Theater in Minneapolis, presenting everything from Shakespeare to contemporary plays. When it comes to professional sports, Minnesota has it all with teams like the Vikings (NFL), Twins (MLB), Timberwolves (NBA) and Wild (NHL), offering thrilling live action throughout the year.
Five of the best live entertainment venus in Minnesota
Annual events like the Saint Paul Winter Carnival and the Minnesota State Fair in Falcon Heights add a festive flavor, drawing visitors from all over with a singular mixture of food, music and Minnesota activities. Whether it’s the adrenaline of city life or the tranquility of escape, Minnesota’s entertainment scene is an enchanting mix of experiences, making it a great place to live for folks on the go and those who lean more toward leisure.
Outside
Minnesota truly is a paradise for those who love the outdoors. The state’s most iconic natural attraction, its many, many lakes, offers endless opportunities for water-based activities. In summer, locals and visitors alike flock to the larger lakes like Lake Superior and Lake Minnetonka for boating, fishing and swimming. Kayaking and canoeing are particularly popular in the Boundary Waters Canoe Area Wilderness, an extensive network of waterways offering serene views and a tranquil escape from the daily grind.
For those who prefer land-based adventures, there are a ton of state parks within Minnesota’s borders. Parks like Itasca State Park – where the mighty Mississippi River begins – provide miles of hiking and biking trails through lush forests and scenic terrain. Birdwatchers and nature photographers will find everything they’re looking for and more in the state’s diverse wildlife and bird species, especially at spots like the National Eagle Center in Wabasha.
Five of the most beautiful parks in Minnesota
When winter blankets Minnesota in snow, the state transforms into a wonderland for cold-weather sports. Skiers and snowboarders head to spots like the Lutsen Mountains on the North Shore of Lake Superior, offering some of the best downhill runs in the Midwest. Cross-country skiing and snowshoeing are also popular, with extensive trail networks like those in Theodore Wirth Park in Minneapolis. For a truly unique Minnesotan experience, ice fishing is a beloved activity, with experts setting up cozy shelters on frozen lakes.
Food
Minnesota’s food scene is, simply put, stellar. The state, famous for its comfort foods, gifts the world the iconic Juicy Lucy, a cheese-stuffed burger that’s a must-try in Minneapolis burger joints. Minnesota’s natural bounty shines in its farm-to-table scene, with local produce and meats featured prominently in many restaurants. But there’s more to Minnesota’s palette than just hearty Midwestern cuisine. The Twin Cities are hotspots for diverse international flavors, ranging from authentic Vietnamese pho to Somali sambusa, reflecting the growing multicultural population that the state is starting to be known for.
Five of the best restaurants in Minnesota
Beyond the usual go-to spots, Minnesota’s unique food experiences continue to intrigue food lovers. The state’s abundant waterways and passion for fishing translate into excellent seafood, particularly freshwater fish like walleye, a local favorite often served pan-fried or in sandwiches. Craft beer enthusiasts often find their happy place in Minnesota, with a thriving small-batch beer scene that’s seen exponential growth over the past couple of decades.
For those with a sweet tooth, the Scandinavian influence is evident in treats like lefse and lutefisk, providing a taste of Minnesota’s immigrant heritage. From upscale dining in cosmopolitan centers to cozy cafés in quaint towns, Minnesota’s food scene is truly something else.
Make Minnesota your home
As our exploration of Minnesota comes to a close, it’s clear that this state is more than just a backdrop of lakes and cold winters. It’s a place where history and modernity intertwine, where the great outdoors offers year-round adventures and where the food scene satisfies the comfort food lover and the adventurous eater. Minnesota’s charm lies in its ability to blend the warmth of its community spirit with the excitement of urban and natural adventures.
Whether you’re drawn by the call of the wild in its vast landscapes or the bustling energy of city life, Minnesota offers a ton of experiences that resonate with people from all walks of life. So, pack your bags, jackets, snow boots and blankets, and get ready to immerse yourself in Minnesota life.
Straddling the border of Missouri and Kansas, Kansas City is a great city with a strong culture, history and food scene that set it apart from other stellar U.S. cities. Plus, it’s more affordable than most comparably sized metros! Known for its distinctive contributions to the arts, sports and cuisine, this Midwestern gem has a unique charm and a deep-rooted history that calls out to visitors and residents alike.
In this article, we delve into the many things that make Kansas City a remarkable and memorable place to call home. From its world-famous barbecue to its pivotal role in jazz music history, we explore the key elements that have shaped Kansas City’s identity and continue to make it a top spot to lay down roots for the long haul.
Employment
Kansas City has a dynamic economy, with a range of employment opportunities across a ton of established or emerging industries. The city is renowned for its significant contributions to industries like agriculture, manufacturing and transportation, reflecting its historical roots as an essential hub in the American Midwest. In recent years, Kansas City has seen a surge in technology and healthcare, attracting innovative startups and skilled professionals.
The five largest employers in Kansas City
For job seekers, Kansas City offers the rare combination of a thriving job market and an affordable cost of living. The city’s entrepreneurial spirit is supported by a strong network of business incubators and accelerators, making it an attractive destination for individuals looking to start or grow their businesses in a supportive environment. Kansas City provides plenty of resources for job training and career development through local organizations and community colleges. The city’s central location in the United States also makes it a strategic spot for logistics and distribution, offering opportunities in transportation, warehousing and more.
Entertainment
Kansas City’s unbreakable connection with jazz is clear thanks to its many live venues, most notably in the bustling 18th & Vine Jazz District. This area is also home to the American Jazz Museum, a must-visit for all jazzy types. Beyond the sweet sounds of a wandering sax, you can find everything from indie rock to classical performances.
The Kauffman Center for the Performing Arts is a hub for talent of all types, hosting the Kansas City Symphony, the Lyric Opera and touring Broadway shows and concerts. Additionally, the Power & Light District offers a more lively nightlife experience with its healthy selection of bars, nightclubs and live music venues, making it a popular destination for a night out.
Five great live entertainment venues in Kansas City
For those seeking a more laid-back evening, Kansas City has more than a few options. The city is home to a thriving arts scene, with galleries and art walks, particularly in the Crossroads Arts District, which comes alive on the first Friday of every month with performances and food trucks. For sports fans, the city rallies around its professional teams, with the Kansas City Chiefs (NFL) and Kansas City Royals (MLB) drawing crowds from across the state.
History
Kansas City has a multifaceted history that dates back to its founding in the early 19th century. Initially, the area was a strategic point for trade and travel, situated at the confluence of the Missouri and Kansas rivers. The settlement, originally known as the Town of Kansas, was established in 1838 and later incorporated as the City of Kansas in 1850. It became a necessary hub for westward expansion, playing a significant role in the history of the Oregon, California and Santa Fe trails. Following the Civil War, Kansas City experienced rapid growth, bolstered by the development of the railroad network. This expansion led to its emergence as a vital center for agriculture, manufacturing and trade in the Midwest.
The 20th century saw Kansas City flourish culturally and economically. The 1920s and 1930s marked a golden era for the city’s jazz scene, with musicians like Charlie Parker and Count Basie contributing to its reputation as a jazz capital. The city’s architecture also experienced a renaissance of sorts, including the construction of more than a few notable Art Deco buildings. However, Kansas City also faced challenges, notably during the era of political boss Tom Pendergast in the 1920s and 1930s, whose influence shaped local politics and infrastructure projects, albeit amidst widespread corruption.
Outside
Kansas City is a great place for outdoorsy types. The city is home to plenty of parks and green spaces, with Swope Park being one of the largest urban parks in the United States. It’s a sizable area for hiking and biking and also houses the Kansas City Zoo as well as two golf courses.
The city’s extensive boulevard system, designed by George Kessler, connects many of these green spaces, creating a cityscape that encourages outdoor activities. The city’s commitment to outdoor living is further exemplified by its well-maintained walking and biking trails, like the Trolley Track Trail and the Riverfront Heritage Trail.
Just a short drive from Kansas City, nature lovers will find an abundance of outdoor activities and natural beauty. The nearby Flint Hills region is unique in its beauty and ideal for hiking, horseback riding and more. To the north, Smithville Lake and Watkins Mill State Park provide additional opportunities for boating, swimming and camping. For those willing to venture a bit further, the Ozarks region to the southeast presents a dramatic change in topography with its rolling hills, forests and many streams and rivers, perfect for camping, hiking and exploring Missouri’s natural beauty.
Food
Kansas City’s barbecue tradition is deeply rooted in its history, with dozens of barbecue establishments across the city, each boasting its own secret recipes and sauces. These range from sweet and tangy to spicy and smoky, offering a diverse palate of flavors.
Kansas City’s barbecue joints, from historic names like Arthur Bryant’s and Gates Bar-B-Q to newer establishments, attract both locals and visitors alike. Beyond barbecue, the city’s culinary scene is a tasty collection of flavors. The City Market area, for example, has a ton of global foods and fresh produce.
Five of the best restaurants in Kansas City
Kansas City has seen a surge in farm-to-table restaurants, emphasizing fresh, locally sourced ingredients and innovative culinary techniques. These establishments often collaborate with nearby farms, resulting in seasonally changing menus that highlight the best of the region’s produce. The city’s coffee culture is also thriving, with specialty coffee shops and roasters dotting the landscape.
So, what is Kansas City known for?
Kansas City is a place that wears many hats, each more colorful and intriguing than the last. It’s a place where history is not just remembered but actively celebrated, where the flavors are as rich and varied as its culture and where the arts and sports shine hand in hand under the bright Missouri (or Kansas) sun.
From the smoky aroma of its legendary barbecue to the soulful sounds of jazz that fill its historic streets — to that “guy on the Chiefs” — Kansas City is not just a destination but an experience. Whether you’re drawn by its food, its musical heritage or its warm, welcoming atmosphere, Kansas City leaves an indelible mark on all who call it home.
If you’re on the cusp of buying a home, one of the first and most significant considerations you’ll encounter is the down payment. This initial investment can influence not just your ability to purchase a home, but also the terms of your mortgage and your financial flexibility in the years to come. Understanding the ins and outs of down payments is more than a financial formality; it’s a critical step in making one of life’s biggest decisions.
In this guide, we explore the essential aspects of making a down payment on a house. From traditional norms to modern options, you’ll learn about the factors influencing down payment requirements and their implications. This article is designed to assist both first-time buyers and experienced investors in understanding the impact of various down payment sizes on the home buying process and their financial future.
The journey to homeownership is filled with important decisions. Our aim is to provide you with the insights needed to make informed choices, aligning your dream of owning a home with your financial objectives. Let’s delve into the importance of down payments and how they play a pivotal role in your home buying adventure.
What is a down payment on a house?
A mortgage is a loan used to purchase a house. But there are very few mortgages available that will cover the total cost of the home.
Instead, most mortgage lenders require that you pay a percentage of the home’s purchase price and finance the rest with a loan. The amount you pay upfront is called a down payment.
This provides the lender with the assurance that you are vested in the property. Otherwise, you may be more likely to default on the mortgage because you didn’t spend any of your own money on the house. Most people won’t miss their monthly mortgage payment and end up in foreclosure. However, lenders typically require it across the board.
Check Out Our Top Picks for 2024:
Best Mortgage Lenders
20% Down Payment
Traditionally, banks required individuals to have a 20% down payment on a house to qualify for a loan. But it wound up making homeownership extremely exclusionary.
After all, that amounts to $40,000 on a $200,000, and most people don’t have that kind of money lying around. So while 20% remains the standard down payment preferred by most lenders, it’s no longer the norm.
In fact, data shows that the average down payment amount is shrinking due to young first-time home buyers. But there are some benefits to saving up a larger down payment of 20% before buying a home, and they can add up to some pretty significant savings over time.
Even beyond financial reasons, putting in an offer letter with a 20% down payment with a conventional loan can make you a more attractive buyer when you’re competing for a specific house.
Why? Because it will give you a lower loan-to-value ratio (LTV.) Your loan looks less likely to fall through because you have a more substantial cash flow and assets than someone with a low down payment. All other things equal, a seller will probably select your offer in a competitive market.
Avoid Paying Private Mortgage Insurance
Another major perk of a large down payment? You avoid paying private mortgage insurance (PMI). Any mortgage for a home you own with less than 20% equity is subject to additional insurance to protect the bank.
The amount depends on your loan type, but it’s usually an annual amount divided out as part of your monthly payments. To get rid of the mortgage insurance, you typically have to refinance the loan, which can be costly.
You also get a better interest rate with a higher down payment. On top of that, having a smaller loan amount lowers your monthly mortgage payment, giving you more money left in your pocket each month.
Low Down Payment Mortgage Options
Most lenders these days don’t expect you to have a full 20% down payment saved up. How much down payment you’ll need for a house depends on the type of loan you choose. The exact amount you’ll need varies based on several factors.
Here’s a rundown of the most common types of mortgages and the down payment requirements for each one. Start here to begin your selection process. It’s also wise to ask potential lenders to provide different scenarios for each loan type you qualify for.
Conventional Loans
Even if you don’t have a 20% down payment, you can qualify for a conventional loan. The minimum down payment is 3%, although you can also do any amount higher than that.
On a $200,000 home, you would pay $6,000 with the minimum down payment. Until a few years ago, at least a 5% down payment was required.
However, Fannie Mae studies indicated that saving up that much money was creating an obstacle to homeownership for many creditworthy individuals. So they created a 97% loan-to-value option that lenders can offer to mortgage applicants.
2% may not seem like a huge difference, but it adds up quickly when dealing with such large dollar amounts. In the scenario above, a 5% down payment on the same house would require a $10,000 down payment — $4,000 more than the 3% option.
Conventional Mortgage Lender Requirements
To qualify for a conventional mortgage, you’ll need to meet certain lender requirements, which can be strict compared to other loan types. For example, credit score requirements generally start around 620, although some lenders may accept as low as 580.
You’ll receive a higher interest rate with both a lower credit score and a small down payment, another factor in determining how much to save for your home. Of course, as with any down payment under 20%, you will have to pay mortgage insurance.
The exact rate can vary, but here’s an example of how much it could cost you. If your loan amount is $194,000 (after your 3% down payment) and your annual mortgage insurance rate is 0.5%, you’d have to pay $970 each year. Split up over 12 monthly mortgage payments, your PMI would add just over $80 to your bill.
FHA Loans
An FHA loan is another option for a loan with a low down payment. FHA loans are backed by the Federal Housing Administration, and insured by the federal government. They allow you to qualify for a mortgage without as many restrictions as conventional loans.
With an FHA loan, you only need a 3.5% down payment. So on that same $200,000 house, you’d only need to supply $7,000 in upfront cash.
FHA Loan Lender Requirements
You also get to take advantage of lower credit score requirements, with the minimum at only 580. Plus, you can qualify with a higher debt-to-income ratio. Conventional lenders only allow 43% of your monthly income to go towards debt payments, including your mortgage.
On the other hand, an FHA lender might let that number creep up between 45% and 50%. So, this is another example of a couple of percentage points making a difference in how much home you can afford.
Mortgage Rates and Private Mortgage Insurance
Again, lower mortgage application standards, including a smaller down payment, typically result in higher costs elsewhere. As a result, you’re likely to see higher interest rates and a higher PMI. With an FHA loan, you’ll have to pay that PMI in two different ways.
The first is a one-time payment at closing. This amounts to 1.75% of your loan amount. Again, say that you’re taking out a $190,000 loan; part of your closing costs would include a $3,325 PMI payment. On top of that, you’ll pay about 0.85% annually.
In this example, that amounts to $1,615, adding $134 to your monthly mortgage payment. So making a low down payment can cost you when it comes to paying PMI each month! Still, it may be a better option, especially if you can quickly reach a 20% loan-to-value and refinance the home loan in a few years.
VA Loans
If you’re a military veteran or active military member, you can qualify for a loan backed by the VA. The great thing about this type of loan is that it doesn’t require any down payment at all.
It also has lower credit score requirements, and no mortgage insurance is required. You do, however, have to pay a one-time funding fee. It can either be paid at closing or rolled into your mortgage amount.
The fee amount varies depending on a few different factors, including your down payment amount, your type of service, and whether you’ve used a VA loan in the past. But if you are regular military personnel and a first-time user of the VA loan with a zero dollar down payment, your funding fee will total 2.15% of the loan amount.
For the sake of comparison, let’s look at the $190,000 loan again. In this scenario, your funding fee comes to $4,085. Since it’s just a one-time fee, the impact on your monthly payment would be fairly minimal since it’s spread out over 30 years.
USDA Loans
A USDA loan is backed by the U.S. Department of Agriculture and promotes homeownership in rural areas. But you don’t have to buy a farm to qualify for this loan type. In fact, many peripheral suburban areas are included.
The great thing is that there is no down payment required for a USDA loan. However, you must meet certain income requirements and may only earn a certain amount each year, which varies depending on where you live.
Like VA loans, USDA loans don’t require PMI, but you have to pay an upfront premium if your down payment is less than 20%. The premium amount is 2% of your loan amount. That would be $3,800 on a $190,000 loan.
Again, you can either pay it up front as part of your closing costs or roll it into your mortgage amount. Check out the eligibility map to see if any properties near you qualify for a USDA loan.
HomeReady Loans
Our final low down payment loan is the HomeReady loan. This loan helps potential homeowners in low-income areas to get the financing they need for a mortgage.
The required down payment on a house is just 3%, and your debt-to-income ratio can be as high as 50%. There’s no income limit, but the property does have to be located in a low-income census tract.
You also have to complete an online education program about homeownership. You will need to pay mortgage insurance with the minimum down payment. However, the program claims to offer lower premiums compared to other loans.
If you find a home you love in an approved area, it’s definitely worth comparing to other available options.
See also: How to Buy a House With No Down Payment
What other costs are associated with buying a home?
We’ve talked a lot about private mortgage insurance adding to the total cost of your loan. But it’s also important to remember that there are fees and expenses to consider.
Some you’ll have to pay upfront, while others are paid over the course of the loan. But, first, remember that your monthly payment includes not only principal and interest but also taxes and insurance.
PITI
Cumulatively, this is called PITI (principal, interest, taxes, and insurance), and those add-ons are often overlooked when using a mortgage calculator. City or county taxes are owed every year, but most lenders charge you monthly and then make the payment on your behalf.
Homeowners Insurance
Homeowners insurance is also required for a loan and can easily tack on an extra $300 to $1,000 per year, depending on the value of your home.
Closing Costs
You should also consider closing costs. Many buyers may try to negotiate that the seller covers these costs, but this tactic isn’t always successful, particularly in competitive real estate markets.
Closing costs cover various services and fees and usually amount to 3-5% of the home’s purchase price. So on that $200,000 home, you could end up paying between $6,000 and $10,000 in closing costs.
If you don’t have the cash up front, you can typically roll them into the loan, but you’ll end up with higher monthly payments. Don’t be afraid of closing costs or any other fees associated with a mortgage, especially if you don’t have much saved for a down payment.
Bottom Line
Understanding down payments is crucial in your home-buying journey. The ideal down payment for your new home hinges on your financial circumstances and the types of loans you’re considering. While a larger down payment can reduce long-term costs through lower interest rates and mortgage insurance, balancing this with your available savings and overall budget is key.
Remember to account for additional expenses like closing fees, taxes, and insurance. These play a significant role in the overall cost of purchasing a home. Utilizing tools like mortgage calculators can help you grasp the implications of different down payment amounts.
In the end, whether you choose a minimal down payment or aim for 20%, the most vital aspect is making an informed decision that suits your financial situation and long-term housing plans. Stay informed, seek guidance when needed, and confidently take this important step towards homeownership.
Frequently Asked Questions
What is the ideal credit score to qualify for a mortgage with a low down payment?
While the minimum credit score required for a mortgage can vary depending on the lender and the type of loan, generally, a score of 580 or higher is needed to qualify for more favorable low down payment options like FHA loans. Higher scores can secure better interest rates and terms.
How can I improve my credit score before applying for a mortgage?
Improving your credit score involves several steps: pay your bills on time, reduce your debt-to-income ratio, avoid opening new credit accounts before applying for a mortgage, and check your credit report for errors. Consistently managing these areas can gradually improve your score.
Are there any down payment assistance programs available?
Yes, there are various down payment assistance programs available, often based on location, income level, or first-time homebuyer status. These programs can offer grants, low-interest loans, and other forms of assistance. It’s advisable to research local and state programs for eligibility.
Can gift funds be used for a down payment?
Yes, many loan types allow the use of gift funds for down payments. However, there are specific rules regarding the source of these funds and documentation required. It’s important to discuss this with your lender to ensure compliance with their guidelines.
What is the difference between pre-qualification and pre-approval for a mortgage?
Pre-qualification is an initial step where a lender gives you an estimate of how much you might be able to borrow based on basic financial information you provide. Pre-approval is more comprehensive, involving a detailed review of your finances and a more concrete offer of loan amount and terms.
How long does the mortgage application process typically take?
The duration of the mortgage application process varies, but generally takes between 30 to 45 days from application to closing. This timeline can be influenced by the complexity of your financial situation, the type of loan, and the efficiency of your lender.
What happens if I make a down payment of less than 20%?
If you make a down payment of less than 20%, you’ll likely need to pay for Private Mortgage Insurance (PMI), which protects the lender in case of default. PMI is typically required until you have at least 20% equity in your home.
Can I withdraw from my retirement account for a down payment without penalty?
In some cases, you can withdraw funds from certain retirement accounts, like an IRA, for a down payment without incurring early withdrawal penalties, especially if you’re a first-time homebuyer. However, there are limits and tax implications to consider.
What are the risks of putting down a smaller down payment?
A smaller down payment on a house can mean larger monthly mortgage payments, higher interest rates, and the necessity to pay PMI. It may also affect your competitiveness as a buyer in a strong market.
How can I estimate my monthly mortgage payment?
Your monthly mortgage payment can be estimated using online mortgage calculators. These calculators take into account the loan amount, down payment, interest rate, and loan term, giving you a rough idea of what to expect.