The VA home loan: Unbeatable benefits for veterans
For many who qualify, VA home loans are some of the best mortgages available.
Verify your VA loan eligibility. Start here
Backed by the U.S. Department of Veterans Affairs, VA loans are designed to help active-duty military personnel, veterans and certain other groups become homeowners at an affordable cost.
The VA loan asks for no down payment, requires no mortgage insurance, and has lenient rules about qualifying, among many other advantages.
Here’s everything you need to know about qualifying for and using a VA loan.
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Top 10 VA loan benefits
1. No down payment on a VA loan
Most home loan programs require you to make at least a small down payment to buy a home. The VA home loan is an exception.
Verify your VA loan eligibility. Start here
Rather than paying 5%, 10%, 20% or more of the home’s purchase price upfront in cash, with a VA loan you can finance up to 100% of the purchase price.
The VA loan is a true no-money-down home mortgage opportunity.
2. No mortgage insurance for VA loans
Typically, lenders require you to pay for mortgage insurance if you make a down payment that’s less than 20%.
This insurance — which is known as private mortgage insurance (PMI) for a conventional loan and a mortgage insurance premium (MIP) for an FHA loan — would protect the lender if you defaulted on your loan.
VA loans require neither a down payment nor mortgage insurance. That makes a VA-backed mortgage very affordable upfront and over time.
3. VA loans have a government guarantee
There’s a reason why the VA loan comes with such favorable terms.
The federal government guarantees these loans — meaning a portion of the loan amount will be repaid to the lender even if you’re unable to make monthly payments for whatever reason.
This guarantee encourages and enables private lenders to offer VA loans with exceptionally attractive terms.
4. You can shop for the best VA loan rates
VA loans are neither originated nor funded by the VA. They are not direct loans from the government. Furthermore, mortgage rates for VA loans are not set by the VA itself.
Instead, VA loans are offered by U.S. banks, savings-and-loans institutions, credit unions, and mortgage lenders — each of which sets its own VA loan rates and fees.
This means you can shop around and compare loan offers and still choose the VA loan that works best for your budget.
5. VA loans don’t allow a prepayment penalty
A VA loan won’t restrict your right to sell the property partway through your loan term.
There’s no prepayment penalty or early-exit fee no matter within what time frame you decide to sell your home.
Furthermore, there are no restrictions regarding a refinance of your VA loan.
You can refinance your existing VA loan into another VA loan via the agency’s Interest Rate Reduction Refinance Loan (IRRRL) program, or switch into a non-VA loan at any time.
6. VA mortgages come in many varieties
A VA loan can have a fixed rate or an adjustable rate. In addition, you can use a VA loan to buy a house, condo, new-built home, manufactured home, duplex, or other types of properties.
Or, it can be used for refinancing your existing mortgage, making repairs or improvements to your home, or making your home more energy-efficient.
The choice is yours. A VA-approved lender can help you decide.
Verify your VA loan eligibility. Start here
7. It’s easier to qualify for VA loans
Like all mortgage types, VA loans require specific documentation, an acceptable credit history, and sufficient income to make your monthly payments.
But, compared to other loan programs, VA loan guidelines tend to be more flexible. This is made possible because of the VA loan guarantee.
The Department of Veterans Affairs genuinely wants to make the loan process easier for military members, veterans, and qualifying military spouses to buy or refinance a home.
8. VA loan closing costs are lower
The VA limits the closing costs lenders can charge to VA loan applicants. This is another way that a VA loan can be more affordable than other types of loans.
Money saved on closing costs can be used for furniture, moving costs, home improvements, or anything else.
9. The VA offers funding fee flexibility
VA loans require a “funding fee,” an upfront cost based on your loan amount, your type of eligible service, your down payment size, and other factors.
Funding fees don’t need to be paid in cash, though. The VA allows the fee to be financed with the loan, so nothing is due at closing.
And, not all VA borrowers will pay it. VA funding fees are normally waived for veterans who receive VA disability compensation and for unmarried surviving spouses of veterans who died in service or as a result of a service-connected disability.
10. VA loans are assumable
Most VA loans are “assumable,” which means you can transfer your VA loan to a future home buyer if that person is also VA-eligible.
Assumable loans can be a huge benefit when you sell your home — especially in a rising mortgage rate environment.
If your home loan has today’s low rate and market rates rise in the future, the assumption features of your VA become even more valuable.
VA loan rates
The VA loan is viewed as one of the lowest-risk mortgage types available on the market.
Verify your VA loan eligibility. Start here
This safety allows banks to lend to veteran borrowers at lower interest rates.
Today’s VA loan rates*
Loan Type
Current Mortgage Rate
VA 30-year FRM
% (% APR)
Conventional 30-year FRM
% (% APR)
VA 15-year FRM
% (% APR)
Conventional 15-year FRM
% (% APR)
*Current rates provided daily by partners of the Mortgage Reports. See our loan assumptions here.
VA rates are more than 25 basis points (0.25%) lower than conventional rates on average, according to data collected by mortgage software company Ellie Mae.
Most loan programs require higher down payment and credit scores than the VA home loan. In the open market, a VA loan should carry a higher rate due to more lenient lending guidelines and higher perceived risk.
Yet the result of the Veterans Affairs efforts to keep veterans in their homes means lower risk for banks and lower borrowing costs for eligible veterans.
VA mortgage calculator
Eligibility
Am I eligible for a VA home loan?
Contrary to popular belief, VA loans are available not only to veterans, but also to other classes of military members.
Find and lock a low VA loan rate today. Start here
The list of eligible VA borrowers includes:
Active-duty service members
Members of the National Guard
Reservists
Surviving spouses of veterans
Cadets at the U.S. Military, Air Force or Coast Guard Academy
Midshipmen at the U.S. Naval Academy
Officers at the National Oceanic & Atmospheric Administration.
A minimum term of service is typically required.
Minimum service required for a VA mortgage
VA home loans are available to active-duty service members, veterans (unless dishonorably discharged), and in some cases, surviving family members.
To be eligible, you need to meet one of these service requirements:
You’ve served 181 days of active duty during peacetime
You’ve served 90 days of active duty during wartime
You’ve served six years in the Reserves or National Guard
Your spouse was killed in the line of duty and you have not remarried
Your eligibility for the VA home loan program never expires.
Veterans who earned their VA entitlement long ago are still using their benefit to buy homes.
The VA loan Certificate of Eligibility (COE)
What is a COE?
In order to show a mortgage company you are VA-eligible, you’ll need a Certificate of Eligibility (COE). Your lender can acquire one for you online, usually in a matter of seconds.
Verify your VA home loan eligibility. Start here
How to get your COE (Certificate of Eligibility)
Getting a Certificate of Eligibility (COE) is very easy in most cases. Simply have your lender order the COE through the VA’s automated system. Any VA-approved lender can do this.
Alternatively, you can order your certificate yourself through the VA benefits portal.
If the online system is unable to issue your COE, you’ll need to provide your DD-214 form to your lender or the VA.
Does a COE mean you are guaranteed a VA loan?
No, having a Certificate of Eligibility (COE) doesn’t guarantee a VA loan approval.
Your COE shows the lender you’re eligible for a VA loan, but no one is guaranteed VA loan approval.
You must still qualify for the loan based on VA mortgage guidelines. The guarantee part of the VA loan refers to the VA’s promise to the lender of repayment if the borrower defaults.
Qualifying for a VA mortgage
VA loan eligibility vs. qualification
Being eligible for VA home loan benefits based on your military status or affiliation doesn’t necessarily mean you’ll qualify for a VA loan.
You still have to qualify for a VA mortgage based on your credit, debt, and income.
Verify your VA loan eligibility. Start here
Minimum credit score for a VA loan
The VA has established no minimum credit score for a VA mortgage.
However, many VA mortgage lenders require minimum FICO scores of 620 or higher — so apply with many lenders if your credit score might be an issue.
Even VA lenders that allow lower credit scores don’t accept subprime credit.
VA underwriting guidelines state that applicants must have paid their obligations on time for at least the most recent 12 months to be considered satisfactory credit risks.
In addition, the VA usually requires a two-year waiting period following a Chapter 7 bankruptcy or foreclosure before it will insure a loan.
Borrowers in Chapter 13 must have made at least 12 on-time payments and secure the approval of the bankruptcy court.
Verify your VA loan home buying eligibility. Start here
VA loan debt-to-income ratios
The relationship of your debts and your income is called your debt-to-income ratio, or DTI.
VA underwriters divide your monthly debts (car payments, credit cards, and other accounts, plus your proposed housing expense) by your gross (before-tax) income to come up with your debt-to-income ratio.
For instance:
If your gross income is $4,000 per month
And your total monthly debt is $1,500 (including the new mortgage, property taxes and homeowners insurance, plus other debt payments)
Then your DTI is 37.5% (1500/4000=0.375)
A DTI over 41% means the lender has to apply additional formulas to see if you qualify under residual income guidelines.
VA residual income rules
VA underwriters perform additional calculations that can affect your mortgage approval.
Factoring in your estimated monthly utilities, your estimated taxes on income, and the area of the country in which you live, the VA arrives at a figure which represents your “true” costs of living.
It then subtracts that figure from your income to find your residual income (e.g. your money “left over” each month).
Think of the residual income calculation as a real-world simulation of your living expenses.
It is the VA’s best effort to ensure that military families have a stress-free homeownership experience.
Here is an example of how residual income works, assuming a family of four which is purchasing a 2,000 square-foot home on a $5,000 monthly income.
Future house payment, plus other debt payments: $2,500
Monthly estimated income taxes: $1,000
Monthly estimated utilities at $0.14 per square foot: $280
This leaves a residual income calculation of $1,220.
Now, compare that residual income to for a family of four:
Northeast Region: $1,025
Midwest Region: $1,003
South Region: $1,003
West Region: $1,117
The borrower in our example exceeds VA’s residual income standards in all parts of the country.
Therefore, despite the borrower’s debt-to-income ratio of 50%, the borrower could get approved for a VA loan.
Verify your VA loan eligibility. Start here
Qualifying for a VA loan with part-time income
You can qualify for this type of financing even if you have a part-time job or multiple jobs.
You must show a 2-year history of making consistent part-time income, and stability in the number of hours worked. The lender will make sure any income received appears stable. See our complete guide to getting a mortgage when you’re self-employed or work part-time.
VA funding fees and loan limits
About the VA funding fee
The VA charges an upfront fee to defray the costs of the program and make it sustainable for the future.
Veterans pay a lump sum that varies depending on the loan purpose and down payment amount.
The fee is normally wrapped into the loan. It does not add to the cash needed to close the loan.
Find out if you qualify for a VA loan. Start here
VA home purchase funding fees
Type of Military Service
Down Payment
Fee for First-Time Use
Fee for Subsequent Use
Active Duty, Reserves, and National Guard
None
2.3%
3.6%
5% or more
1.65%
1.65%
10% or more
1.4%
1.4%
VA cash-out refinance funding fees
Type of Military Service
Fee for First-Time Use
Fee for Subsequent Uses
Active Duty, Reserves, and National Guard
2.3%
3.6%
VA streamline refinances (IRRRL) & assumptions
Type of Military Service
Fee for First-Time Use
Fee for Subsequent Uses
Active Duty, Reserves, and National Guard
0.5%
0.5%
Manufactured home loans not permanently affixed
Type of Military Service
Fee for First-Time Use
Fee for Subsequent Uses
Active Duty, Reserves, and National Guard
1.0%
1.0%
VA loan limits in 2024
VA loan limits have been repealed, thanks to the Blue Water Navy Vietnam Veterans Act of 2019.
There is no maximum amount for which a home buyer can receive a VA loan, at least as far as the VA is concerned.
However, private lenders may set their own limits. So check with your lender if you are looking for a VA loan above local conforming loan limits.
Verify your VA loan eligibility. Start here
Eligible property types
Houses you can buy with a VA loan
VA mortgages are flexible about what types of property you can and can’t purchase. A VA loan can be used to buy a:
Detached house
Condo
New-built home
Manufactured home
Duplex, triplex or four-unit property
Find out if you qualify for a VA loan. Start here
You can also use a VA mortgage to refinance an existing loan for any of those types of properties.
VA loans and second homes
Federal regulations limit loans guaranteed by the Department of Veterans Affairs to “primary residences” only.
However, “primary residence” is defined as the home in which you live “most of the year.”
Therefore, if you own an out-of-state residence in which you live for more than six months of the year, this other home, whether it’s your vacation home or retirement property, becomes your official “primary residence.”
For this reason, VA loans are popular among aging military borrowers.
Buying a multi-unit home with a VA loan
VA loans allow you to buy a duplex, triplex, or four-plex with 100% financing. You must live in one of the units.
Buying a home with more than one unit can be challenging.
Mortgage lenders consider these properties riskier to finance than traditional, single-family residences, so you’ll need to be a stronger borrower.
VA underwriters must make sure you will have enough emergency savings, or cash reserves, after closing on your house. That’s to ensure you’ll have money to pay your mortgage even if a tenant fails to pay rent or moves out.
The minimum cash reserves needed after closing is six months of mortgage payments (covering principal, interest, taxes, and insurance – PITI).
Your lender will also want to know about previous landlord experience you’ve had, or any experience with property maintenance or renting.
If you don’t have any, you may be able to sidestep that issue by hiring a property management company. But that’s up to the individual lender.
Your lender will look at the income (or potential income) of the rental units, using either existing rental agreements or an appraiser’s opinion of what the units should fetch.
They’ll usually take 75% of that amount to offset your mortgage payment when calculating your monthly expenses.
VA loans and rental properties
You cannot use a VA loan to buy a rental property. You can, however, use a VA loan to refinance an existing rental home you once occupied as a primary home.
For home purchases, in order to obtain a VA loan, you must certify that you intend to occupy the home as your principal residence.
If the property is a duplex, triplex, or four-unit apartment building, you must occupy one of the units yourself. Then you can rent out the other units.
The exception to this rule is the VA’s Interest Rate Reduction Refinance Loan (IRRRL).
This loan, also known as the VA Streamline Refinance, can be used for refinancing an existing VA loan on a home where you currently live or where you used to live, but no longer do.
Check your VA IRRRL eligibility. Start here
Buying a condo with a VA loan
The VA maintains a list of approved condo projects within which you may purchase a unit with a VA loan.
At VA’s website, you can search for the thousands of approved condominium complexes across the U.S.
If you are VA-eligible and in the market for a condo, make sure the unit you’re interested in is approved.
As a buyer, you are probably not able to get the complex VA-approved. That’s up to the management company or homeowner’s association.
If a condo you like is not approved, you must use other financing like an FHA or conventional loan or find another property.
Note that the condo must meet FHA or conventional guidelines if you want to use those types of financing.
Veteran mortgage relief with the VA loan
The U.S. Department of Veterans Affairs, or VA, provides home retention assistance. The VA intervenes when a veteran is having trouble making home loan payments.
The VA works with loan servicers to offer loan options to the veteran, other than foreclosure.
Find out if you qualify for a VA loan. Start here
In fiscal year 2019, the VA made over 400,000 contact actions to reach borrowers and loan servicers. The intent was to work out a mutually agreeable repayment option for both parties.
More than 100,000 veteran homeowners avoided foreclosure in 2019 alone thanks to this effort.
The initiative has saved the taxpayer an estimated $2.6 billion. More importantly, vast numbers of veterans and military families got another chance at homeownership.
When NOT to use a VA loan
If you have good credit and 20% down
A primary advantage to VA home loans is the lack of mortgage insurance.
However, the VA guarantee does not come free of charge. Borrowers pay an upfront funding fee, which they usually choose to add to their loan amount.
The fee ranges from 1.4% to 3.6%, depending on the down payment percentage and whether the home buyer has previously used his or her VA mortgage eligibility. The most common fee is 2.3%.
Find out if you qualify for a VA loan. Start here
On a $200,000 purchase, a 2.3% fee equals $4,600.
However, buyers who choose a conventional mortgage and put 20% down get to avoid mortgage insurance and the upfront fee. For these military home buyers, the VA funding fee might be an unnecessary expense.
The exception: Mortgage applicants whose credit rating or income meets VA guidelines but not those of conventional mortgages may still opt for VA.
If you’re on the “CAIVRS” list
To qualify for a VA loan, you must prove you have made good on previous government-backed debts and that you have paid taxes.
The Credit Alert Verification Reporting System, or “CAIVRS,” is a database of consumers who have defaulted on government obligations. These individuals are not eligible for the VA home loan program.
If you have a non-veteran co-borrower
Veterans often apply to buy a home with a non-veteran who is not their spouse.
This is okay. However, it might not be their best choice.
As the veteran, your income must cover your half of the loan payment. The non-veteran’s income cannot be used to compensate for the veteran’s insufficient income.
Plus, when a non-veteran owns half the loan, the VA guarantees only half that amount. The lender will require a 12.5% down payment for the non-guaranteed portion.
The Conventional 97 mortgage, on the other hand, allows down payments as low as 3%.
Another low-down-payment mortgage option is the FHA home loan, for which 3.5% down is acceptable.
The USDA home loan also requires zero down payment and offers similar rates to VA loans. However, the property must be within USDA-eligible areas.
If you plan to borrow with a non-veteran, one of these loan types might be your better choice.
Explore your mortgage options. Start here
If you apply with a credit-challenged spouse
In states with community property laws, VA lenders must consider the credit rating and financial obligations of your spouse. This rule applies even if he or she will not be on the home’s title or even on the mortgage.
Such states are as follows.
Arizona
California
Idaho
Louisiana
Nevada
New Mexico
Texas
Washington
Wisconsin
A spouse with less-than-perfect credit or who owes alimony, child support, or other maintenance can make your VA approval more challenging.
Apply for a conventional loan if you qualify for the mortgage by yourself. The spouse’s financial history and status need not be considered if he or she is not on the loan application.
Verify your VA loan home buying eligibility. Start here
If you want to buy a vacation home or investment property
The purpose of VA financing is to help veterans and active-duty service members buy and live in their own home. This loan is not meant to build real estate portfolios.
These loans are for primary residences only, so if you want a ski cabin or rental, you’ll have to get a conventional loan.
If you want to purchase a high-end home
Starting January 2020, there are no limits to the size of mortgage a lender can approve.
However, lenders may establish their own limits for VA loans, so check with your lender before applying for a large VA loan.
Spouses and the VA mortgage program
What spouses are eligible for a VA loan?
What if the service member passes away before he or she uses the benefit? Eligibility passes to an unremarried spouse, in many cases.
Find and lock a low VA loan rate today. Start here
For the surviving spouse to be eligible, the deceased service member must have:
Died in the line of duty
Passed away as a result of a service-connected disability
Been missing in action, or a prisoner of war, for at least 90 days
Been a totally disabled veteran for at least 10 years prior to death, and died from any cause
Also eligible are remarried spouses who married after the age of 57, on or after December 16, 2003.
In these cases, the surviving spouse can use VA loan eligibility to buy a home with zero down payment, just as the veteran would have.
VA loan benefits for surviving spouses
Surviving spouses have an additional VA loan benefit, however. They are exempt from the VA funding fee. As a result, their loan balance and monthly payment will be lower.
Surviving spouses are also eligible for a VA streamline refinance when they meet the following guidelines.
The surviving spouse was married to the veteran at the time of death
The surviving spouse was on the original VA loan
VA streamline refinancing is typically not available when the deceased veteran was the only applicant on the original VA loan, even if he or she got married after buying the home.
In this case, the surviving spouse would need to qualify for a non-VA refinance, or a VA cash-out loan.
A cash-out mortgage through VA requires the military spouse to meet home purchase eligibility requirements.
If this is the case, the surviving spouse can tap into the home’s equity to raise cash for any purpose, or even pay off an FHA or conventional loan to eliminate mortgage insurance.
Qualifying if you receive (or pay) child support or alimony
Buying a home after a divorce is no easy task.
If, prior to your divorce, you lived in a two-income household, you now have less spending power and a reduced monthly income for purposes of your VA home loan application.
With less income, it can be harder to meet both the VA Home Loan Guaranty’s debt-to-income (DTI) guidelines and the VA residual income requirement for your area.
Receiving alimony or child support can counteract a loss of income.
Mortgage lenders will not require you to provide information about your divorce agreement’s alimony or child support terms, but if you’re willing to disclose, it can count toward qualifying for a home loan.
Different VA-approved lenders will treat alimony and child support income differently.
Typically, you will be asked to provide a copy of your divorce settlement or other court paperwork to support the alimony and child support payments.
Lenders will then want to see that the payments are stable, reliable, and likely to continue for another 36 months, at least.
You may also be asked to show proof that alimony and child support payments have been made in the past reliably, so that the lender may use the income as part of your VA loan application.
If you are the payor of alimony and child support payments, your debt-to-income ratio can be harmed.
Not only might you be losing the second income of your dual-income households, but you’re making additional payments that count against your outflows.
VA mortgage lenders make careful calculations with respect to such payments.
You can still get approved for a VA loan while making such payments — it’s just more difficult to show sufficient monthly income.
VA loan assumption
What is VA loan assumption?
One benefit for home buyers is that VA loans are assumable. When you assume a mortgage loan, you take over the current homeowner’s monthly payment.
Verify your VA loan home buying eligibility. Start here
That could be a big advantage if mortgage rates have risen since the original owner purchased the home. The buyer would be able to acquire a low-rate, affordable loan — and it could make it easier for the seller to find a willing buyer in a tough market.
VA loan assumption savings
Buying a home via an assumable mortgage loan is even more appealing when interest rates are on the rise.
For example:
Say a seller-financed $200,000 for their home in 2013 at an interest rate of 3.25% on a 30-year fixed loan
Using this scenario, their principal and interest payment would be $898 per month
Let’s assume current 30-year fixed rates averaged 4.10%
If you financed $200,000 at 4.10% for a 30-year loan term, your monthly principal and interest payment would be $966 per month
Additionally, because the seller has already paid four years into the loan term, they’ve already paid nearly $25,000 in interest on the loan.
By assuming the loan, you would save $34,560 over the 30-year loan due to the difference in interest rates. You would also save roughly $25,000 thanks to the interest already paid by the sellers.
That comes out to a total savings of almost $60,000!
How to assume (take on) a VA loan
There are currently two ways to assume a VA loan.
The new buyer is a qualified veteran who “substitutes” his or her VA eligibility for the eligibility of the seller
The new home buyer qualifies through VA standards for the mortgage payment. This is the safest method for the seller as it allows the loan to be assumed knowing that the new buyer is responsible for the loan, and the seller is no longer responsible for the loan
The lender and/or the VA needs to approve a loan assumption.
Loans serviced by a lender with automatic authority may process assumptions without sending them to a VA Regional Loan Center.
For lenders without automatic authority, the loan must be sent to the appropriate VA Regional Loan Center for approval. This loan process will typically take several weeks.
When VA loans are assumed, it’s the servicer’s responsibility to make sure the homeowner who assumes the property meets both VA and lender requirements.
VA loan assumption requirements
For a VA mortgage assumption to take place, the following conditions must be met:
The existing loan must be current. If not, any past due amounts must be paid at or before closing
The buyer must qualify based on VA credit and income standards
The buyer must assume all mortgage obligations, including repayment to the VA if the loan goes into default
The original owner or new owner must pay a funding fee of 0.5% of the existing principal loan balance
A processing fee must be paid in advance, including a reasonable estimate for the cost of the credit report
Find out if you qualify for a VA loan. Start here
Finding assumable VA loans
There are several ways for home buyers to find an assumable VA loan.
Believe it or not, print media is still alive and well. Some home sellers advertise their assumable home for sale in the newspaper, or in a local real estate publication.
There are a number of online resources for finding assumable mortgage loans.
Websites like TakeList.com and Zumption.com give homeowners a way to showcase their properties to home buyers looking to assume a loan.
With the help of the Multiple Listing Service (MLS), real estate agents remain a great resource for home buyers.
This applies to home buyers specifically searching for assumable VA loans as well.
How do I apply for a VA loan?
You can easily and quickly have a lender pull your certificate of eligibility (COE) to make sure you’re able to get a VA loan.
Most mortgage lenders offer VA home loans. So you’re free to shop and compare rates with just about any company that catches your eye.
Getting a VA loan for your new home is similar in many ways to securing any other purchase loan. Once you find an ideal home in your price range, you make a purchase offer, and then undergo VA appraisal and underwriting.
VA appraisal ensures that the home meets its minimum property requirements (MPRs) and is structurally sound and safe for occupancy.
What’s more, VA-specific mortgage lenders are actually some of the highest-rated (and lowest-priced) on the market. Here are a few we’d recommend checking out.
Time to make a move? Let us find the right mortgage for you
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Automation, Pre-Approval, QC Products; Rent vs. Buy; More Proposed Paperwork for Lenders
By: Rob Chrisman
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Saturday was George Thorogood’s 74th birthday, and fans know that he wrote the classic tale of rent collection, land ladies, and payment avoidance. Time flies, but that may change. We’re faced with an actual five-day workweek this week, with no Federal holidays until Memorial Day, May 27th, two months away! Yikes. Here in Houston at the TMBA’s Southern Secondary Conference, the attendees are already making use of what time they have, discussing best execution procedures, warehouse tactics, management strategies, economic trends, the market for servicing, and operational efficiencies. I’m a capital markets guy, so arguably learned math good. But I didn’t learn math like this! MBS versus cash sales pick-ups is always a favorite topic, although last year the market was deluged by excess servicing trades. Flow and bulk purchasers of HELOCs and 2nds is search being undertaken by some, as well as climate change and insurance cost increases. (Found here, this week’s podcast is brought to you by nCino, makers of the nCino Mortgage Suite for the modern mortgage lender. nCino Mortgage Suite’s three core products – nCino Mortgage, nCino Incentive Compensation, and nCino Mortgage Analytics – unite the people, systems, and stages of the mortgage process. Today’s has an interview with Yardsworth’s Matt Lucido on creative ways that homeowners can leverage their tappable equity, and how we can see more supply hit the market.)
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“Everyone wants to make their borrowers sticky and we’ve got the Krazy Glue. I’m talking ‘gotta get to the emergency room to get your fingers unstuck’ kind of glue. It’s called QuickQual, it integrates with Encompass® by ICE Mortgage Technology™ and once you pre-approve your borrower, they’re coming back.
Just as Morpheus offered Neo the ultimate choice between reality and illusion in The Matrix, Dark Matter Technologies invites you to choose between the past and the future of mortgage lending in its “Choose Your LOS Experience” ad campaign. Take the blue pill and stay the course with old-school thinking and technology. Or take the red pill and join DMT to revolutionize your business with cutting-edge technology, unparalleled automation, and relentless innovation, as evidenced by the Empower® LOS and the AIVA® artificial intelligence solution. When it comes to your future, “choose wisely.” Schedule a demo with the Dark Matter team today to explore how the Empower LOS can transform your business.
Is More Paperwork Heading Our Way?
Do we need more rules and regulations and paperwork, or better rules and regulation and paperwork? The federal bank regulatory agencies announced their first of a series of requests for comment to reduce regulatory burden. The Economic Growth and Regulatory Paperwork Reduction Act of 1996 requires the Federal Financial Institutions Examination Council and federal bank regulatory agencies to review their regulations every 10 years to identify any outdated or otherwise unnecessary regulatory requirements for their supervised institutions.
To facilitate this review, the agencies divided their regulations into 12 categories and are first soliciting comments on their regulations in three categories: Applications and Reporting, Powers and Activities, and International Operations. Comments on the relevant regulations will be accepted for 90 days after publication in the Federal Register.
But Ballard Spahr reports that on February 16, the Financial Crimes Enforcement Center (“FinCEN”) published a Notice of Proposed Rulemaking (“NPRM”) regarding residential real estate. The final version of the NPRM published in the Federal Register is 47 pages long. We have created a separate document which more clearly sets forth the proposed regulations themselves, at 31 C.F.R. § 1031.320, here.
“FinCEN also has published a Fact Sheet regarding the NPRM, here. The Fact Sheet, slightly over four pages long, is helpful and walks through the basics of many of the proposed requirements. The NPRM proposes to impose a nation-wide reporting requirement for the details of residential real estate transactions, subject to some exceptions, in which the buyer is a covered entity or trust. Title agencies, escrow companies, settlement agents, and lawyers need to pay particular attention to the NPRM because, based on FinCEN’s “cascade” approach to who should be responsible for complying with the reporting requirements, these parties are the most likely to be responsible.
”Rent Versus Own” Economics
If you’re still paying off your mortgage, renting is likely cheaper than owning in each of the nation’s 50 largest metros. Median rent costs are lower than median homeowner costs for those with mortgages but higher than costs for homeowners without mortgages. LendingTree analyzed housing data to compare monthly rental and housing payments for homes with and without mortgages in the 50 largest metros in the U.S.
The difference between median housing costs for homes with a mortgage and median gross rent is $563 a month. The spread in costs between renting and owning a home with a mortgage is widest in the San Jose, Calif., San Francisco, and New York metros. The difference between the median monthly housing costs for homes with a mortgage and the median monthly gross rent in these metros is $1,341, $1,303, and $1,289, respectively. Phoenix, Orlando, Fla., Jacksonville, Fla., and Atlanta have the narrowest gaps between renting and owning a home with a mortgage. In Phoenix and Orlando, median gross rent costs are $87 and $145 less than median monthly housing costs for homes with a mortgage. In both Jacksonville and Atlanta, the difference is $216.
That said, Barron’s reports that, “Prospective buyers spent the President’s Day holiday last week window shopping, early data suggest. ‘Showing activity was strong,’ says Orphe Divounguy, a senior economist at Zillow, citing data from home tour software company Showingtime. Home touring activity was up 19.4% from the start of the year, pointing to a strong seasonal ramp-up.”
Capital Markets
Markets are known for “getting ahead of themselves,” and the latest example may be the “insatiable demand” for Nvidia’s artificial intelligence chips. The stock has shot up, resulting in the company briefly surpassing a $2 trillion valuation. But other equity prices have tagged along, boosting the general stock market.
That said, investors have been walking back expectations for Federal Reserve rate cuts. Goldman Sachs, for example, has pushed back expectations for a Fed rate cut to June. If you like rates where they are, fine. If you’re hoping for lower rates to jump start your business in the near future, well…
The dominating market narrative recently has been that while interest rate cuts may be appropriate at some point this year, it is not likely to be anytime soon. Resilient economic growth and optimism that inflation will continue to fall in the face of high interest rates has fostered household demand, bolstered expectations the U.S. will avoid a downturn in the near term and forced investors to ratchet back bets on early rate cuts. Philadelphia Fed President Harker warned against betting on early rate cuts late last week, saying “I will signal my belief that we’re ready for a rate decrease when all the data, both the hard and the soft, give me that signal.” Pricing in fed funds futures has all but erased the chance of a March rate cut, and the chance of a cut in June is currently a coin-toss. Economists now see a 40 percent chance of recession in the next year, the lowest reading since mid-2022.
Last week was fairly quiet in terms of economic releases and the few that came out did nothing to change the current narrative of U.S. economic conditions. The Leading Economic Index declined 0.4 percent versus a -0.3 percent forecast and is now just two points above its April 2020 low. Historically, the prolonged decline observed in this data set predates a recession, but at the moment, it appears this recession signal is out of step with current economic conditions. Elsewhere, existing home sales rose 3.1 percent in January thanks in part to declining mortgage rates in December.
Since then, rates have moved back up towards 7 percent. The FOMC has repeatedly indicated it is in no hurry to begin reducing the fed funds rate until they are fully confident inflation is sustainably moving towards their 2 percent goal.
This week opens with $169 billion in month-end supply over the first two days along with the usual $309 billion in Treasury bills. There are several important economic releases with the highlight being the Fed-favorite PCE price index for January is on Thursday. We will also receive durable goods for January, home price indexes for December, consumer confidence for February, the second reading on Q4 GDP, Chicago PMI for February, January construction spending, and final February consumer sentiment.
The deadline for Congress to avert a partial government shutdown is Friday. Today starts quietly with new home sales for January, expected to register 680k versus 664k in December, Dallas Fed manufacturing business index for February, and remarks from the new Kansas City Fed President Schmid. The Treasury will auction $63 billion 2-year notes, $70 billion 6-month bills, $63 billion 5-year notes, and $79 billion 3-month bills. We begin the week with Agency MBS prices roughly unchanged from Friday’s close and the 10-year yielding 4.24 after closing last week at 4.26 percent. Helping ARM rates, the 2-year is down to 4.68 percent.
Jobs and Transitions
Logan Finance is hiring! Non-QM Account Executives are in high demand at Logan Finance, especially those of you in Florida. Contact us today to learn more. Speaking of hiring, Logan is happy to announce that Ryan Rathert and Sarah Gonzalez have joined the executive team as Chief of Staff and Chief Operating Officer, respectively. Ryan is a proven mortgage finance wizard and Sarah a renowned industry maven, so put your sunglasses on, because the future at Logan is bright! And the spotlight will be on Logan’s SVP Business Development, Paul Jones, as he presents “Discover the DSCR Difference with Logan Finance”, session #2 in the monthly series, “The Modern Non-QM Experience”. Join Paul on March 6 at 2pm ET. Register here. If you’re looking for a Non-QM career boost, send your resume or check out LoganWholesale.com and LoganCorrespondent.com for more information. Join Logan and become a #LoganLeader today.
“Don’t just close loans, close the gap on your potential. Kind Lending is seeking mortgage professionals with an entrepreneurial spirit and KIND mindset. We will provide a comprehensive catalog of loan products to serve your clients, along with advanced marketing and tech tools to grow your brand and exponentially expand your reach. You will be empowered to rewrite your success by leveraging the powerful tools available at your fingertips. It’s your business. We are here to fuel it. If you are ready to build win-win relationships with a company that values you and your growth, contact Traci Miller, National Talent Acquisition Manager.”
Click n’ Close, a multi-state mortgage lender serving consumers and mortgage originators through its wholesale and correspondent channels and formerly known as Mid America Mortgage, announced Polly Cracchiolo has joined the organization’s third-party originator (TPO) sales team as an account executive.
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Inside: Explore top high income skills that don’t require a degree. From AI to Cybersecurity to copywriting, learn how to earn big and without a traditional education.
In today’s rapidly changing economy, traditional educational paths such as acquiring a master’s degree are no longer the sole route to a lucrative career.
In my own journey, I discovered that mastering certain high-income skills (stock trading) can lead to financial success that outpaces even those with advanced degrees. This revelation underscores the value of investing time and effort into developing marketable abilities that align with industry demands.
These high-paying skills, often honed through online platforms, specialized training, and real-world experience, provide a level of flexibility. Plus an earning potential that can exceed the prospects of conventional academic education.
As such, they represent a powerful, alternate paradigm for career advancement and personal growth that you may want to check out.
Quick Answer
Typically, these are based on online jobs that include expertise in certain fields. These roles leverage the digital space to generate significant income and careers are in demand into the foreseeable future.
You can learn and develop these skills through online educational platforms, which can open up a plethora of high-paying job opportunities without the need for traditional college credentials.
High Income Skills for Tech and Digital Domination
In case you haven’t heard, AI and the tech world are the focus of most high paying jobs.
In fact, Microsoft, Google, and Apple recently stated they will take certification over a college degree.1
Now, let’s explore the various high-income skills that are currently shaping the technology sector and will move to making over six figures.
AI and machine learning
AI and machine learning are not just buzzwords! These fields represent some of the most lucrative areas in tech. As businesses seek ways to make sense of big data, professionals who can design intelligent systems and algorithms are in high regard.
The beauty is that many resources exist to self-educate in this domain, such as online courses, bootcamps, and certifications, making the path accessible for those without a formal business degree.
Best for: This field is ideal for individuals who have a strong aptitude for mathematics, statistics, and programming, and who are passionate about tech and innovation.
Mastering SEO
Search Engine Optimization (SEO) has become a coveted skill in the arsenal of every digital strategist. Why is it so invaluable? Because it acts as the linchpin for visibility in the digital space.
SEO isn’t just about playing with keywords; it’s about understanding the user’s intent, the algorithms of search engines, and the technical makeup of websites to ensure they’re discoverable.
Mastering SEO involves a cocktail of abilities: from understanding meta tags and crafting content that resonates with both humans and search engines, to building a robust backlink portfolio.
Best for: SEO is suited for those who enjoy both the analytical and creative sides of digital marketing and are interested in a dynamic, ever-evolving field.
Cybersecurity
In the digital age, cybersecurity is not just important—it’s essential. Protecting sensitive data and maintaining the integrity of computer systems against threats can be the difference between a thriving business and one that’s exposed to potentially catastrophic breaches.
Notably, cybersecurity proficiency can often be achieved through specialized certifications, bootcamps, or practical experience rather than a traditional degree. Those who commit to ongoing education and remain vigilant of the industry’s pulse become indispensable assets in any organization.
Best for: Perfect for individuals who have a knack for problem-solving, are detail-oriented, and enjoy learning about technology’s cutting edge.
Software Development
As the pillars of our increasingly digital world, software developers write the code that powers everything from mobile applications to global banking systems. The lure of software development as a high-paying skill is evident.
It’s foundational to virtually every industry, offers diverse opportunities for specialization, and provides the satisfaction of building something tangible.
With abundant online resources like coding bootcamps and tutorials, passionate learners can bypass the traditional degree route and directly jump into this lucrative and fulfilling career.
Best for: Individuals who are logical, detail-oriented, and have a strong interest in technology and its potential applications will find a career in software development both rewarding and profitable.
Mobile app development
Mobile App Development is your ticket into the heart of the booming app economy. As smartphone ubiquity grows, so does the need for innovative apps that simplify life—whether that’s for banking, shopping, or entertainment.
Given the high demand for mobile experiences, companies are willing to pay top dollar for developers who can craft intuitive and effective mobile applications. The best part is that this skill can be honed through free courses or even app-building software for those with limited coding knowledge.
Best for: Perfect for those who are not only passionate about coding but also keen on understanding and improving how users interact with technology.
Blockchain Expertise
The field of blockchain has transcended its association purely with cryptocurrencies to become a high-value asset in various sectors. Businesses seek talented individuals who can leverage this technology for secure, decentralized solutions.
Unlike many traditional roles, the burgeoning blockchain field offers the chance for self-taught experts to demonstrate their value based on their skills, portfolio, and understanding of blockchain’s practical applications.
Best for: Blockchain expertise is a high-income skill ideal for individuals who have a strong foundation in technology and an interest in how it can be used to innovate traditional business practices.
Creativity Pays Off with These High Income Skills
Graphic Design
Embarking on a career in graphic design could very well be your gateway to a creatively fulfilling and financially rewarding job market. By marrying aesthetics with functionality, you bring concepts to life, whether it’s through website visuals, logos, or digital media.
The journey to mastering graphic design can be self-directed—you can learn the principles online, through software tutorials, and practice them into existence.
Best for: Individuals with a flair for the arts who enjoy thinking creatively to solve visual challenges and like the aspect of using technology.
Video Production & Editing
In a content-driven era, where video is king, mastery in this field could land you lucrative gigs across various platforms and industries.
Whether it’s for digital marketing, entertainment, or online education, the demand is high, and the barrier to entry is lower than ever—thanks to a plethora of self-teaching resources and accessible technology.
Best for: Those who have a keen eye for detail and a passion for creating engaging, high-quality video content that tells a story.
Professional Photography
Photography captures more than images; it encapsulates emotions, stories, and moments. With the advent of high-quality smartphone cameras and affordable DSLRs, the skill of professional photography is more accessible than ever.
Whether for stock photography, events, or branding, your keen eye for composition and lighting can open doors to a rewarding career without the need for a degree.
Best for: Individuals with a passion for visual arts, a creative mindset, and a strong sense of detail are often the best fit for a high-income career in professional photography.
Copywriting
The pen (or keyboard) can indeed be mightier than the sword in today’s digital-driven world through copywriting.
Articulating compelling narratives that resonate with audiences can catapult brands to new heights, making this skill a valuable asset. The best part? You can cultivate your copywriting prowess from anywhere, thanks to online courses, ebooks, and practice platforms.
All you need is a sharp mind, a clear writing style, and a grasp of persuasive techniques.
Best for: Copywriting is a top choice for those who love writing and are curious about a multitude of topics, with an interest in marketing principles and audience engagement.
Voiceover Artistry or Podcast Production
Unlock the power of your voice and make money – a skill set that’s becoming increasingly profitable. Whether you’re voicing animated characters or hosting a thought-provoking podcast series, the audio medium is a bustling marketplace.
Podcasting, it’s about creating a compelling narrative that listeners can’t resist. While for voiceovers, it’s about bringing scripts to life. Both can be learned through online tutorials, training programs, and practice.
Best for: Individuals with a strong, versatile voice and passion for storytelling will find voiceover work and podcast production both lucrative and rewarding, even without formal training.
Marketing High Income Skills Know-How
Content Creation
Content Creation has become the cornerstone of the digital marketing world, attracting not just audiences but also significant revenue streams. As a content creator, you can weave words, videos, or images to capture attention, inspire, and inform—whether it’s through social media, websites, or other digital platforms.
My path to becoming a content creator was primarily through hands-on experience as well as through consistent practice and staying up-to-date knowledge of digital trends.
Best for: Content Creation is especially suited for those with a creative mindset, who enjoy storytelling and are adept at using digital tools to craft content for an online audience.
Social Media Marketing
This is a brilliant intersection of creativity, strategy, and communication. As a social media marketer, you’ll help brands navigate the bustling social landscape, where billions of users engage daily.
You’ll be tasked with crafting campaigns, analyzing data, and connecting with audiences in a way that drives not just likes, but also leads and loyalty—all of which you can master through free online resources and real-world practice.
Best for: Those who enjoy fast-paced, dynamic environments and have a knack for engaging with people and understanding modern communicative trends.
Affiliate Marketing
Becoming an influencer and tapping into the world of affiliate marketing seems so easy but truly it is a strategy where your persuasion skills can translate into earnings—all without a formal degree.
By promoting products or services via unique affiliate links, you earn commissions on sales. Flourishing in this domain stems from understanding your audience and aligning the products you endorse with their interests.
Best for: Those who have a passion for sales and marketing, are comfortable with self-promotion, and are interested in monetizing their digital presence.
Sales Strategies
The key to unlocking staggering profit margins and business growth is sales and this doesn’t require formal education. This high-income skill revolves around understanding consumer psychology, building relationships, and convincingly presenting products or services.
Many times, those in sales have a knack for the industry. Whether refining your approach through online courses, books, or hands-on experience, excellence in sales comes down to a blend of empathy, insight, and adaptability.
Best for: Excellent fit for outgoing individuals who thrive in competitive environments and derive satisfaction from meeting and exceeding targets.
High Income Skills That Work With People
Language translation and interpretation
This is not only about converting words from one language to another; it’s about bridging cultural divides and facilitating communication. With the globalization of business and the rise of remote work, fluent speakers in multiple languages can capitalize on a multitude of high-paying roles.
And the best part? You can often get started with just bilingual proficiency, some formal certification, and a deep understanding of cultural nuances.
Best for: Ideal for multilingual individuals passionate about language and communication, with a desire to facilitate dialogue in an increasingly connected world.
Freelance consulting in various niches
These are seasoned professionals with an avenue to monetize their wealth of experience and expertise. This thriving field allows you to empower clients with your knowledge, whether it’s in marketing, finance, HR, or any other domain.
What’s more, you can kickstart this lucrative journey with minimal prerequisites—a strong track record, a portfolio of successful projects, and perhaps some industry-recognized certifications.
Best for: Experts in their respective fields who are adept at problem-solving, enjoy sharing their insights and are looking for flexible, high-income opportunities.
Coaching
This is a skill that transforms lives and careers, catapulting you into roles where you guide and motivate others to achieve their personal and professional goals.
As a coach, whether it’s in life, business, career transition, or personal development, you can create a substantial income stream. What’s particularly enticing about coaching as a high-income skill is that it often requires no formal degree—many coaches are self-taught, certified through various programs, and most importantly, driven by a passion to help others succeed.
Best for: Coaching is perfect for individuals with a strong desire to help others, who can cultivate trust, and who possess both the self-discipline and initiative to build their own coaching business.
Public Speaking
Often touted as a soft skill, public speaking has immense potential as a high-paying expertise. The ability to captivate, engage, and influence an audience is invaluable in various professional settings—from corporate presentations to motivational speaking circuits.
The good news is that you can develop this skill through local workshops, online courses, and ample practice. Perhaps even more compelling, is how public speaking bolsters other aspects of personal development, such as confidence and clarity of thought.
Best for: Individuals who enjoy expressing their ideas, exhibit strong interpersonal abilities and derive satisfaction from influencing and inspiring others.
Real Estate
A dynamic field where you can significantly profit from the buying, selling, and leasing of property.
With the right approach and knowledge, personalized by your unique sales flair, you can achieve notable success without the prerequisites of a higher degree. It’s all about your ability to network, negotiate, and understand market trends, guided by state-specific licensing requirements.
Best for: Suited to go-getters with an entrepreneurial spirit, a passion for property, and the perseverance to cultivate a strong portfolio of clients and sales.
High Income Skills for Introverts
Stock Trading
My personal gateway to the exhilarating world of finance, where the potential for high earnings exists for those with the knack and nerve for it.
This high-stress skill—often considered one of the most lucrative skills without a degree—entails buying and selling stocks or options to capitalize on daily market fluctuations. While challenging, with diligent self-education, a cool head for numbers, and a calculated risk approach, you can make stock trading a profitable venture.
Best for: Stock Trading is particularly fitting for those who exhibit patience, enjoy learning about economics and finance, and can handle significant levels of stress without clouding their judgment. Highly recommended to take an investing course.
UX/UI Design
Focusing on crafting meaningful interactions between users and products, UX/UI designers are the architects behind the intuitive use of websites and applications.
The plethora of free resources and communities available online means you can build a portfolio and learn this sought-after skill without a degree.
Best for: Creative minds who have an affinity for technology and user psychology and who enjoy the iterative process of improving product usability and appeal.
Web development and coding
Building and maintaining the structural foundation of websites offers a variety of high-income opportunities without necessarily requiring a four-year degree. Armed with the knowledge of HTML, CSS, and JavaScript, which can be self-taught through platforms like Codecademy, you can create and innovate on the internet’s exciting canvas.
Best for: Analytical thinkers who also appreciate creative expression, and those willing to evolve with the digital landscape constantly.
Data Analysis
Transforming raw numbers into actionable insights, data analysts contribute significantly to strategic decision-making. Fascinatingly, this skill is achievable without a degree, thanks to a plethora of online tools and courses in Excel, SQL, and Python that are freely available.
With a logical mindset and an eagerness to decipher data stories, you could secure a high-income position in businesses of all stripes, from tech startups to major corporations.
Best for: Suitable for those who enjoy crunching numbers, identifying patterns, and have a deep curiosity about how information can influence business strategies.
Bookkeeping
A critical yet often understated skill that plays a foundational role in businesses both big and small. As a bookkeeper, you steward financial accuracy, track transactions, and ensure the book balance.
What may come as a surprise is that modern bookkeeping doesn’t always require a degree—there are online courses that can pave the way for a high-income career for detail-oriented and number-savvy individuals.
Best for: Those who appreciate routine, enjoy working with numbers and take satisfaction in playing a key support role in a business’s financial health.
Must Need High Income Soft Skills
In today’s competitive job market, possessing high-income soft skills can significantly enhance your career trajectory and boost your earning potential.
These soft skills not only complement your technical abilities but also ensure you are a valuable asset to any team, fostering seamless collaboration and leadership. As the workplace evolves, employers increasingly seek candidates who exhibit a rich blend of interpersonal and strategic skills that drive business success.
Problem-solving skills for critical situations are invaluable, and the best news? Whether it’s through active listening, analytical reasoning, assessing risks, or critical thinking, being adept at navigating complex problems can set you apart in the workforce.
Communication skills in professional environments are the linchpin of a thriving career. Being able to articulate your thoughts and listen to others effectively means smoother collaborations and clearer negotiations.
Time Management for efficient productivity is a transformative skill that can make or break professional success. Mastering time management means accomplishing more in less time, leading to greater productivity without the need for a formal degree.
Leadership and Team Management capabilities signal an upgrade in your professional toolkit. Great leaders can marshal a group towards common goals, fostering teamwork, and eliciting the strengths of each member.
Negotiation Skills for Maximizing Value are a powerhouse in the world of commerce, crucial for deal-making and advancing business interests. Learning the art of negotiation is possible without formal education; it’s about understanding human psychology, effective communication techniques, and strategic planning.
Creative Thinking for Innovative Solutions is a valued asset in any business context, prized for driving forward unique and effective problem-solving. This type of thinking allows you to step outside traditional boundaries and generate fresh ideas.
Stepping into the entrepreneurial arena can be your ticket to independence and potential high earnings. Entrepreneurs are the trailblazers of the business world, initiating new ventures, and driving economic growth. While there’s no fixed educational path to entrepreneurship, the journey is fueled by a diverse skill set including innovation, perseverance, management, and the ability to pivot strategies as needed.
FAQs
A skill is considered ‘high-paying’ in 2024 if it is in high demand, offers significant value to employers or clients, and requires a level of expertise that’s not easily found.
These skills typically address current market needs, technological advancements, or specialized knowledge that can drive revenue, increase efficiency, or create competitive advantages. Essentially, the rarer and more necessary the skill, the higher the potential earning power becomes.
Yes, self-taught skills can compete with a traditional degree, especially in industries that prioritize practical experience and proven ability over formal education.
Personally, I can attest to this as I learned many of these high income skills long after I completed my degree.
In fields like technology, digital marketing, or creative arts, a portfolio showcasing your work often carries more weight than a degree. Furthermore, many companies adopt skills-based hiring practices, valuing competency and initiative as key indicators of a candidate’s potential.
Which High Paid Skill to Learn Will You Focus on?
In conclusion, acquiring high-income skills is a powerful strategy for advancing your career and unlocking new professional opportunities or even side hustles. In fact, many are ways to make money online.
This is a simple way to increase the amount of money you make each month.
By embracing continuous learning to hone these in-demand abilities, you can significantly enhance your earning potential and job market desirability.
Investing in the development of high-income skills will pave the way for a brighter, more prosperous future. Just like finding a low stress jobs that pay well without a degree.
Don’t just read. Now, is the time to take action!
Source
Business Insider. “Microsoft doesn’t require a college degree for entry-level jobs.” https://www.businessinsider.com/microsoft-execs-no-college-degree-for-entry-level-positions-2020-2#ping-look-who-leads-microsofts-cybersecurity-detection-and-response-team-added-that-candidates-who-apply-to-jobs-without-a-college-degree-already-signal-a-level-of-determination-that-she-respects-3. Accessed February 18, 2024.
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Selling your house is often one of the largest financial transactions you’ll make in your life. It can be complex and emotionally challenging, especially if it’s your first time dealing with a home sale or if the house is full of family memories.
Despite these challenges, millions of people successfully sell their homes each year. The process is well-trodden, but each sale has its unique circumstances and can come with many curveballs.
Whether you’re downsizing, upgrading, relocating, or just ready for a change, selling your house is a big step. The task might seem daunting, but remember, you’re not alone. Many resources can guide you through this process, providing advice and support along the way.
This guide aims to simplify the process and provide you with step-by-step instructions to help sell your house.
From setting your objectives to finally handing over the keys, we’ll walk you through each stage. We will address common challenges and offer expert insights to ensure you’re well-prepared for the journey ahead. Our goal is to help you sell your house at the best possible price within your desired timeline, while minimizing stress and maximizing satisfaction.
Understand Your Selling Objectives
The first step in any successful real estate transaction is understanding your motivations and objectives for selling. Be clear about your goals and timeline to create a selling strategy that will get you the price you want for your home within the timeframe desired.
Why are you selling?
Your motivations for selling might be tied to lifestyle changes, financial circumstances, or relocation for work. Perhaps you’ve outgrown your current house, or maybe it’s become too big after the kids have moved out. You might need to relocate for a new job or prefer a change in scenery as you approach retirement. By identifying your reasons for selling, you’ll have a clearer idea of what you want to achieve with the sale.
What’s your timeline?
Your timeline can significantly influence your selling strategy. If you’re in a rush due to reasons like a job relocation or closing on another home, you may have to price your property more competitively to attract a faster sale. However, if you have the luxury of time, you can afford to be patient and wait for an offer that matches your ideal price.
Evaluate Your Financial Position
Understanding your financial situation is essential in the home-selling process. A realistic view of your finances will help you make informed decisions, particularly in setting a reasonable asking price.
Understand Your Home Equity
Equity refers to the portion of your property that you truly “own” – it’s the difference between the current market value of your home and the remaining balance on your mortgage. Knowing your equity can give you an idea of your potential profits from the sale.
Consider Your Outstanding Mortgage
The amount left on your mortgage is another critical factor. If your outstanding balance is more than your home’s sale price, you may need to consider a short sale, which requires your lender’s approval and can affect your credit score.
Estimate Closing Costs
Closing costs are the fees and expenses you pay to finalize your home’s sale, excluding the commission for the real estate agent. They may include title insurance, appraisal fees, and attorney fees, among other costs. These are usually about 2-5% of the purchase price. Understanding these costs is crucial as they directly impact your net proceeds from the sale.
Taking the time to clarify your selling objectives and understanding your financial position will pave the way for a more streamlined and successful home-selling experience. These factors are not just critical for setting a realistic asking price but also for aligning your home sale with your larger financial or life goals.
Prepare Your House for Sale
Once you’ve identified your selling objectives, the next step is to prepare your house for the market. A well-prepared home can catch the attention of more prospective buyers and even command a higher sale price.
Home Improvements and Necessary Repairs
Before you list your home, assess its overall condition. Some minor upgrades and necessary repairs can significantly enhance your home’s appeal, often leading to a faster sale or higher selling price.
Deep Cleaning and Carpet Cleaning
Begin with a deep clean to ensure your home looks its best. Pay attention to often-overlooked areas, such as baseboards, window sills, and ceiling fans. If you have carpets, consider hiring a professional carpet cleaning service to remove any stains or odors. Cleanliness can significantly influence a buyer’s first impression.
Minor Upgrades and Fixes
Next, tackle minor upgrades and repairs that could deter potential buyers. This could include painting walls with a fresh, neutral color, fixing any plumbing or electrical issues, and ensuring all appliances are in working order. Although these tasks may seem small, they can make a big difference to potential buyers.
Stage Your House
Staging your house involves preparing it for viewing by potential buyers. It can significantly impact how quickly your home sells and the price.
Hire a Professional Stager
A professional stager, although an extra cost, can be a worthwhile investment. For a few hundred dollars, they can transform your space and make it appealing to as many potential buyers as possible. They use strategies like optimal furniture placement, accentuating natural light, and choosing neutral decor to make your home attractive and inviting.
Depersonalize Your Home
Part of effective staging involves depersonalizing your home. This means removing personal items like family photos, collections, and mementos. The aim is to create a neutral space where potential buyers can easily envision themselves and their own belongings. It’s all about helping buyers picture your house as their future home.
In the competitive real estate market, first impressions count. By investing time, money and effort in staging your house for sale, you can stand out from the competition and make a great impression on prospective buyers. These preparations could translate into a quicker sale and potentially a higher price.
Set the Right Price
One of the most critical decisions in the home-selling process is determining the right asking price. Setting a competitive price can help attract more prospective buyers, shorten the time your home spends on the market, and potentially yield a higher sale price.
Understand the Importance of Pricing
Choosing the right price is not just about the amount you’d like to receive. It’s also about understanding buyer psychology and local market trends. Pricing your home correctly can result in more interest, more showings, and ultimately, more offers.
Get a Comparative Market Analysis
A key tool for setting the right price is a Comparative Market Analysis (CMA). A CMA provides information about recent home sales in your area, adjusted for differences in features and conditions, giving you a good idea of what buyers might be willing to pay for your home.
Hire a Great Real Estate Agent
A great real estate agent can provide an accurate and comprehensive CMA. They have the experience and local market knowledge to understand which homes are truly comparable to yours and how various features and upgrades impact pricing.
Consider Comparable Sales
Comparable sales, or “comps,” are recent home sales in your area that are similar to your property in size, condition, and features. Your real estate agent will look at these comps, adjust for differences, and use the information to guide you towards a fair and attractive list price.
Adjust for Features and Conditions
Every home is unique, and its features and condition will impact its value. Your real estate agent will consider these factors when setting your home’s list price. For example, if your home has a new roof or a remodeled kitchen, it might command a higher price compared to a similar home without these upgrades.
Setting the right price is both an art and a science. It requires an understanding of the local real estate market, an evaluation of comparable sales, and an assessment of your home’s unique features. By enlisting the help of a great real estate agent and leveraging their expertise, you can set a competitive price that will attract serious buyers and maximize your profits.
Market Your House
Once your house is ready for sale and priced right, the next step is to get the word out to prospective buyers. Effective marketing can attract more interest and lead to quicker, more competitive offers.
Use High-Quality Professional Photos
Professional photography plays a crucial role in marketing your house. High-quality photos can showcase your home’s best features and give potential buyers a good first impression. Homes listed with professional photos tend to receive more views online, which can lead to faster sales and often at higher prices.
Craft a Compelling Listing Description
A well-written listing description can spark interest and invite potential buyers to learn more. Highlight your home’s unique features, recent upgrades, and what makes it special. Remember, you’re not just selling a property, you’re selling a lifestyle. Allow your real estate agent to offer feedback and help you create an enticing, optimized listing that will also show up in search results when people are looking for a home like yours.
Host Open Houses and Private Showings
Open houses and private showings are opportunities for potential buyers to experience your home in person. Be flexible with your schedule and make your house available for viewing as often as you can. The more people who walk through your door, the better your chances of receiving an offer.
The Role of a Good Real Estate Agent in Marketing
Marketing a house involves a significant time commitment and a specific set of skills. This is where a good real estate agent comes into play.
Leverage the Multiple Listing Service (MLS)
A good real estate agent can list your property on the Multiple Listing Service (MLS), a database of homes for sale that’s used by real estate professionals. An MLS listing can increase your home’s visibility, attracting other real estate agents and their clients.
Find a Realtor with A Proven Track Record
Choose a real estate agent with a proven track record of sales in your area. Their experience and local market knowledge can be invaluable in promoting your home effectively and attracting serious buyers.
In a crowded real estate market, standing out is key. By leveraging professional photography, crafting a compelling listing description, and utilizing the expertise of a good real estate agent, you can market your home effectively, attracting more potential buyers and increasing your chances of a successful sale.
Evaluate Offers and Negotiate
Once your marketing efforts start paying off and offers begin to come in, it’s time to shift focus to negotiation. The goal here is to achieve the best possible terms that align with your selling objectives.
How to Evaluate Offers
When you receive an offer, it’s essential to look beyond the offered price. While the highest offer might seem the most appealing, it’s not always the best choice.
Consider the Buyer’s Lender
Understanding where the buyer’s financing comes from is important. Offers from buyers who are pre-approved by a well-known lender may carry less risk than those from buyers who are not pre-approved or who are using a less established lender.
Assess the Down Payment
The size of the buyer’s down payment can indicate their financial stability. A larger down payment may suggest that the buyer has solid finances and is serious about purchasing your home.
Understand the Buyer’s Timeline
A buyer’s timeline can be just as important as their offered price. A qualified buyer who can close quickly might be more attractive than a higher offer that’s contingent on selling a current house.
How to Manage Multiple Offers
Receiving multiple offers can be exciting, but it can also be overwhelming. Your real estate agent can help you with this process.
Consult with Your Real Estate Agent
Your real estate agent’s experience can be invaluable in this situation. They can guide you through your options, help you compare offers side by side, and give advice based on their understanding of the current real estate market and the specifics of each offer.
Make the Best Decision Based on Your Needs
When reviewing multiple offers, it’s important to consider your own needs and priorities. For example, if you need to sell quickly, you might prioritize a buyer who can close sooner, even if their offer is not the highest.
Negotiating and accepting offers can be a complex part of the selling process. It’s not just about accepting the highest offer, but understanding the nuances of each proposal and making the best decision for your circumstances. With the right real estate agent by your side, you can handle this process confidently and successfully.
Close the Sale
After you’ve accepted an offer, the next step is to finalize the transaction. The closing process involves several stages, including a home inspection, title search, potential repair negotiations, and final paperwork signing. Here’s what to expect:
The Due Diligence Period
The due diligence period allows the buyer to further investigate the property after their offer has been accepted. During this time, the buyer’s agent will arrange for a home inspection.
Home Inspection and Report
A professional home inspector will thoroughly examine your property and generate an inspection report. This document details the condition of the house and outlines any potential issues, from minor maintenance concerns to significant structural problems.
Negotiating Repairs
If the inspection report reveals necessary repairs, there may be further negotiations. Buyers might ask you to handle the repairs, reduce the sale price, or offer a credit at closing to cover the repair costs.
The Title Search and Insurance
As part of the home buying process, the buyer’s lender will work with a title company to conduct a title search. This ensures the house is free from liens or claims and that you have a clear title to transfer to the new owners.
Understanding Title Insurance
Buyers might also negotiate for you to pay for title insurance as part of the closing costs. Title insurance protects the buyer and their lender from future property ownership claims, unexpected liens, or undisclosed property heirs.
Sign the Final Paperwork
The last step in the home sale process is the closing meeting. Here, you’ll sign the final paperwork, which includes key documents such as:
The Bill of Sale
This document transfers the ownership of personal property (like appliances or furniture) included in the home sale.
The Deed
This legal document transfers ownership of the property from you, the seller, to the buyer.
Documents Prepared by a Real Estate Attorney or Real Estate Brokerage
The closing process involves many legal documents. These might be prepared by a real estate attorney or real estate brokerage to ensure everything is in order.
Closing the sale of your house can be a complex process. However, understanding each step can help you proceed with confidence and reach a successful conclusion to your home sale journey.
Post Sale Considerations
Even after the final paperwork has been signed, and the new owners have the keys, there are a few additional factors to consider. The sale of your house doesn’t just end at the closing table. Let’s delve into these post-sale considerations.
Understand the Tax Implications
Selling your house can have significant tax implications. The application of taxes largely depends on the profit you make from the sale and how long you’ve lived in the house.
Capital Gains Tax Exemption
If the house was your primary residence for at least two of the last five years before selling, you might qualify for a capital gains tax exemption. This can significantly reduce your tax liability.
Consult with a Tax Professional
However, tax laws can be complex, and every situation is unique. Consult with a tax professional or a certified public accountant to fully understand the potential tax impacts. They can provide guidance tailored to your specific circumstances.
The Move to Your New Home
Moving to your new home involves logistical and financial considerations. Plan ahead for moving costs, including professional movers, moving supplies, and potential temporary housing.
Keep Records of Your Home Sale Expenses
It’s wise to keep a comprehensive record of all home sale-related expenses. This includes real estate agent commissions, home improvements made before the sale, and any fees or costs associated with closing. These records can be crucial for your future tax returns or financial planning.
Some of your moving costs may be tax-deductible if you or a member of your household is in the military, and you are moving due to a military order. Previously, moving costs were tax-deductible for many people who were relocating due to a job. After 2025, these deductions may return.
Conclusion
Selling your house is a significant event, and educating consumers about the process can reduce stress and result in a better outcome. By preparing your home, pricing it right, and working with a competent real estate agent, you can complete the transaction smoothly and efficiently.
The selling process might seem overwhelming, but with thorough preparation and the right team on your side, it can be an exciting time. Remember, every house can sell, it just requires the right strategy, a competitive price, and a bit of patience.
Frequently Asked Questions
What should I do if my house isn’t selling?
If your house isn’t attracting buyers, various factors could be at play. The asking price may be too high, marketing efforts might be insufficient, or the house’s condition could be deterring potential buyers. Consult with your real estate agent to pinpoint potential problems and devise solutions. You may need to reduce the price, enhance your marketing strategy, or invest in necessary home improvements.
Can I sell my house myself instead of using a real estate agent?
Yes, selling your house yourself is an option. This is known as “For Sale By Owner” (FSBO). However, selling a house involves complex tasks like pricing, marketing, negotiating, and handling legal paperwork. Real estate agents possess the expertise and experience to deal with these challenges. If you opt for FSBO, be prepared for a significant time commitment and be ready to handle these tasks yourself.
How long does it usually take to sell a house?
The timeline for selling a house can vary greatly and depends on numerous factors, such as local market conditions, the home’s condition and price, and even the time of year. On average, it can take anywhere from a few days to a few months. Your real estate agent can give you a better estimate based on local trends and your specific situation.
What is a seller’s market, and how can it impact my home sale?
A seller’s market occurs when the demand for homes exceeds the current supply. This often results in homes selling more quickly and at higher prices. If you’re selling your house in a seller’s market, it can be an advantage as you may get multiple offers and a higher sale price.
Should I make repairs before selling my house?
Whether to make repairs before selling your house often depends on the type and extent of the repairs and the overall condition of your house. Small repairs and improvements, like painting or fixing leaky faucets, can make a good impression on buyers. If your home has more more substantial issues, discuss the repairs with your real estate agent to weigh the cost against the potential return on investment.
Hedging, Renovation, Home Equity, Accounting Products; U.S. Population Stats; Fannie Earnings of $3.9 Billion
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Hedging, Renovation, Home Equity, Accounting Products; U.S. Population Stats; Fannie Earnings of $3.9 Billion
By: Rob Chrisman
Thu, Feb 15 2024, 11:01 AM
In my travels I’ve eaten some unusual foods, although maybe not this unusual, but here in Boise the talk is about how unusual it is that applications and locks have suddenly shot up in the last several business days. It is nice to hear and see the hustle and perseverance from originators pay off some. Taking a look at the big picture, per the U.S. Census Bureau, nearly 40 percent of all homeowners own their homes free and clear, or 33.4 million mortgage-free, single-family homes and condos. And some percentage of those have credit card debt that is 25 or 30 percent, so a tax-deductible loan at 7 percent can be pretty attractive. Sure enough, refis are hitting the numbers: as reported last month, 89 percent of people with mortgages have an interest rate below 6 percent, down from a record 93 percent in 2022. (Today’s Commentary podcast can be found here and this week’s is sponsored by Lender Toolkit and its AI-powered AI Underwriter and Prism borrower income automation tools. By providing lightning-fast underwriting decisions, your market reputation with borrowers and Realtors will soar, which means more repeat and referral business. Hear an interview with Stavvy’s Angel Hernandez on industry and regulatory affairs, and the state of loss mitigation solutions.)
Lender and Broker Services, Products, and Software
Ready to sprint? After successfully automating the front end of the mortgage loan process, is the industry ready to conquer what remains? To those with the vision of responsible innovation, the answer is ‘yes.’ Much of the mortgage lifecycle is still reliant on outmoded, labor-intensive processes and fragmented legacy technology. To address this disconnect, FHFA convened industry participants to explore data digitization as the vehicle for change. Clarifire’s current blog, “Responsible Innovation – A Future Vision for the Mortgage Industry,” looks at the five correlating challenges that continue to impact lenders, vendors, and regulators. It’s time to implement responsible automation with CLARIFIRE® promoting borrower engagement, 24/7 self-serve access, dynamic automated rapid results, operational efficiencies, and meaningful cost savings. Meet us at MBA’s Servicing Solutions Conference & Expo and learn how to deliver cohesive innovation with a better approach, better results, and better software. CLARIFIRE®, truly BRIGHTER AUTOMATION®.
“When it comes to delivering a seamless mortgage experience, 2024 borrowers are looking for a swift, accurate and modern approach. How can you deliver on all three? That’s where automation comes in. In this new article from ICE Mortgage Technology®, we uncover common automation misconceptions and share the steps lenders can take to transform their mortgage processes and meet today’s borrowers where they are. Read the full article to learn how leveraging ICE Data and Document Automation™ in Encompass® can help lenders reduce manual efforts so they can reignite, reinvent, and refocus their business strategy to ensure its future-proof.”
Make your general ledger profitable and run your business more efficiently with Loan Vision and LV-PAM. Instead of “staying alive until ‘25”, with Loan Vision, a software built by the mortgage industry for the mortgage industry, you can “produce more in 24!” Customers on Loan Vision see improvements of 30 percent+ decrease in days to close the books, 20 percent+ reduction in accounting headcount, complete LOS to G/L automation, and improved reporting and visibility. Interested in learning how Loan Vision can help you run a more efficient and profitable company? Contact Carl Wooloff to schedule a call today.
Managing incoming referrals from a branch network is a pain… but not with LiteSpeed by LenderLogix! With LiteSpeed, each branch can have its own online loan application that seamlessly integrates into Encompass® by ICE Mortgage Technology™. All the tracking you need to make sure you’re getting the most out of your branch network. See why banks and credit unions are making the switch to LenderLogix.
TPO Products for Brokers and Correspondents
“Button Finance is excited to launch our new home equity loan offerings tailored for investor properties and those qualifying via bank statements, exclusively for our broker partners. We’re extending loans up to $500k with competitive CLTVs, up to 80 CLTV for investor properties and 85 CLTV for bank statement loans. Our flexible terms accommodate up to 50 percent DTI and extend up to 30 years, ensuring a fit for a wide range of financial situations. Importantly, these additions come without any changes to our existing programs, which continue to offer rates as low as 8 percent, with correspondents earning up to 7.85 percent of the loan balance. Please email us for more information or to sign up!”
Renovation lending fuels loan production, boosts profits, and fortifies housing inventory in competitive markets. Explore the rising demand for renovation loans with Planet Home Lending’s Guide to Renovation lending, tailored for correspondent lenders. From seizing opportunities to fostering robust partnerships, it offers a step-by-step roadmap. Request your exclusive copy today.
AmeriHome Mortgage, the 2nd largest correspondent investor in the country, is officially the #4 Overall Lender according to Inside Mortgage Finance! Backed by the strength of Western Alliance Bank, AmeriHome wants to speak to you about how a relationship with it will help you navigate and succeed in this ever-changing industry. By combining Western Alliance Bank’s Warehouse Lending and MSR and Note Financing tools, as well as its Treasury Management expertise, with AmeriHome’s industry leading loan purchase platform, this is a “must-have” relationship for mortgage bankers of all shapes and sizes. AmeriHome recently enhanced key overlays, including removal of their max cash out overlay on VA loans and their Best Efforts Relock policy… Connect with your sales rep for details. Don’t miss AmeriHome in Houston for TMBA Southern Secondary later this month as well as MCT Exchange in March! Check Upcoming Events for details, find your sales rep here, or send them an email to learn more about partnering with AmeriHome!
“Citibank N.A. remains committed to sustainable growth and responsible expansion of the Correspondent Lending channel. One of the elements we’re focused on is building new and existing relationships with Non-Delegated, Best-Efforts lenders who have a passion for supporting consumers in underserved markets. Following a significant investment in our Non-Delegated platform featuring enhanced capabilities and increased capacity, Citi Correspondent Lending is working to create opportunities for smaller mortgage bankers wanting to make a sustainable impact in their local communities. We offer a robust set of Community Reinvestment Act (CRA) pricing incentives (available at point of sale through Optimal Blue and ICE’s EPPS pricing engines) as well as a growing suite of community lending-focused programs. To learn more about these and all that Citi Correspondent Lending has in flight, contact us or complete and return our Prospective Correspondent Questionnaire.”
Demographics for Originators
The U.S. Census Bureau projected that the U.S. population has increased 1,759,535 (0.53 percent) from Jan. 1, 2023, and 4,443,957 (1.34 percent) from Census Day (April 1) 2020. In January 2024, the United States is expected to experience one birth every 9.0 seconds and one death every 9.5 seconds. Meanwhile, net international migration is expected to add one person to the U.S. population every 28.3 seconds. The combination of births, deaths and net international migration increases the U.S. population by one person every 24.2 seconds. The projected world population on Jan. 1, 2024, was 8,019,876,189, an increase of 75,162,541 (0.95 percent) from New Year’s Day 2023. During January 2024, 4.3 births and 2.0 deaths are expected worldwide every second.
The 2024 NextGen Homebuyer Report, a research project developed in partnership with National MI to provide practical insights into the behavior and preferences of the next generation of homebuyers, is out. “In partnership with National MI, Kristin Messerli has surveyed over 5,000 NextGen homebuyers over the past 4 years to bring fresh insights to the mortgage industry.
The 2024 report analyzes data from a January survey of 1,000 Gen Z and Millennial respondents to gain a deeper understanding of NextGen homebuyers’ challenges, motivations, and behaviors. Common themes of this report include skepticism about the market, lack of confidence in experts, and a desire for education.”
Per the survey, over half of Gen Z and Millennials are not confident homeownership will be accessible to the next generation. 51 percent of them are not confident in their knowledge of homebuying, and 54 do not trust lenders to help them make smart decisions about their future. So, if you’re a lender, you know where to put some resources!
Conventional Conforming Updates
Yesterday Freddie Mac announced its earnings, and today it was Fannie Mae’s turn. Fannie saw $17.4 billion in annual net income for 2023 and $3.9 billion in fourth quarter 2023 net income, with net worth reaching $77.7 billion as of December 31. Net income increased $4.5 billion in 2023 compared with 2022, primarily driven by a $7.9 billion shift to a benefit for credit losses in 2023 from provision for credit losses in 2022.
Freddie Mac announced that Eric Wilson and Jonathan Kunkle have been named vice presidents of Seller Engagement for the Single-Family Division. In their roles, Eric will oversee Eastern Regions of the country and Jonathan will lead Western Regions. Both will establish strategic direction and provide the primary source of market intelligence and seller business perspective within Freddie Mac for their regions.
Fannie Mae February Selling Guide SEL-2024-01 includes multiple topics such as expanding the value acceptance + property data offering to include condos, clarifies the qualifying rate for 7- and 10-year ARMS, allows cash-out refinances for manufactured homes with terms up to 30 years, updates eligible types of nontraditional credit references, clarifies policies for the use of business income, clarifies property insurance coverage requirements, updates mortgage origination definitions, and includes other miscellaneous updates.
Effective March 28, the process for submitting contribution credits with capitalized modification expenses with Fannie Mae will change. The new line-item Contribution to Cap Advances must be used for this type of contribution. In the interim, servicers may utilize the Escrow Balance line item. Fannie Mae’s Servicer Expense Reimbursement team offers fast and efficient reimbursement of expenses incurred while servicing Fannie Mae loans.
With AmeriHome Mortgage Announcement Number 20240204-CL, AmeriHome clarified that Texas Section 50(a)(6) loans are not eligible for temporary interest rate buydowns with Fannie Mae loan programs.
Capital Markets
Are you looking for tools to improve profitability and efficiency in your mortgage loan sale process? In a recent case study, Vellum Mortgage describes how they were able to save $50,000 through AOTs, add three new investors, and save twelve hours a month with MCT. “I always send my bid tapes out to my approved and unapproved investors in MCT Marketplace,” said Ashley Puckett, Senior Capital Markets Analyst at Vellum Mortgage. “It’s great to see those shadow bids come in and then decide if we want to sign up with a certain investor because their executions have been strong lately.” Vellum Mortgage was able to leverage MCT’s software and expertise to achieve their goals after switching from their previous hedge advisor. Read the full case study or join MCT’s newsletter for information on how MCT is helping clients achieve their goals.
Investors hoping for early and aggressive Fed rate cuts in 2024 sit disappointed, with the hotter than expected reading for both the headline and core inflation numbers forcing those investors to once again reconcile with a higher for longer interest rate environment.
Mortgage rates are on the rise, and now sit at a two-month high after a CPI-inspired selloff for risk assets earlier this week. Blame investor (over)optimism or blame the Fed, but the true blame lies with sticky inflation. The core inflation rate has been steadily rising on a month-over-month basis since the summer. Pricing in Fed Fund futures now implies between three and four 25 basis point cuts for the year, beginning in June, a significant departure from the seven rate cuts that were priced in just a month ago. The risk now is that inflation continues to accelerate, sending bond prices lower.
Bonds rebounded somewhat yesterday from the sell-off triggered by Tuesday’s inflation data and reset in Fed rate cut expectations. It’s much needed after U.S. mortgage rates rose last week to a two-month high. You may be asking yourself what is giving the Fed pause before it is willing to cut rates? There are a few key points of uncertainty for policymakers: A hot economy, geopolitical risk, and financial decisions. Fed Governor Barr said yesterday that the Fed needs to see more data indicating inflation is approaching 2 percent before it begins easing, supporting Fed Chair Powell’s cautious approach. Chicago Fed President Goolsbee said a few months of slightly higher prices would still be consistent with a path back to target. There was some assistance in bond pricing yesterday after the Bureau of Labor Statistics’ downward revision to December PPI to -0.2 percent from -0.1 percent.
Today’s economic calendar is jam-packed with data, including some of the “first-tier” variety. It is already under way with retail sales for January (-.8 percent, worse than expected, ex-auto -.6). Sales were expected to slip 0.1 percent month-over-month versus 0.6 percent previously in December. We’ve also received Empire manufacturing for February (-2.2 percent), import and export prices for January (), Philadelphia Fed manufacturing for February (5.2 percent, higher than expected), and weekly jobless claims (212k, down from 220k). Later today brings industrial production and capacity utilization for January, December business inventories, the NAHB Housing Market Index for February, various Treasury auctions headlined by 20-year bonds, 30-year TIPS, and reopened 2-year FRNs, and Freddie Mac’s latest Primary Mortgage Market Survey. Two Fed speakers are scheduled, Governor Waller and Atlanta President Bostic. We begin the day with Agency MBS prices better by about .125 and the 10-year yielding 4.21 after closing yesterday at 4.27 percent. The 2-year is at 4.53.
Employment
Spring EQ’s Retail & TPO divisions continue to experience rapid growth as demand for home equity solutions accelerates. To meet this demand, Spring EQ is hiring licensed MLOs in Pennsylvania, New Jersey, and Ohio for its retail channel and remote Senior Account Executives for its Wholesale and Correspondent channels. Explore Spring EQ job postings and come join our growing team of fun and experienced mortgage professionals! At Spring EQ our primary focus is second mortgages. So, think of us first for all your seconds. Don’t wait, start the application process today!
In the Northwest and California, Banner Bank is searching for Mortgage Loan Officers looking to create lasting Realtor and builder relationships at a bank focused on the market today. Banner has opportunities for lenders looking for local decision making with FHA, VA, USDA, state bond and true Portfolio lending opportunities along with servicing retained Fannie and Freddie loans to assist in client retention. Additional highlighted products cover CRA lending with private label no payment down payment assistance to help assist all borrowers with the right opportunity. Banner is the right fit for an established team, or the individual looking to grow their business and take the next step in their career. Please send resumes to Aaron Miller.
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Medical debt is an unfortunate reality for millions of Americans. As healthcare costs continue to rise, it becomes increasingly important to understand the financial implications of medical debt and its impact on your credit score.
This article will delve into the world of medical debt and provide you with strategies to manage and minimize its effects on your credit score.
How Medical Bills Affect Credit Scores
Unpaid medical debt can have a significant impact on your credit scores, especially when it becomes delinquent or goes to collections. Here are some key points to consider:
The role of medical debt in credit score calculations: Medical bills, like other types of debt, factor into your credit score calculations. Late or missed payments and unpaid bills can lower your credit scores, making it more challenging to obtain loans, credit cards, or favorable interest rates.
Late payments and unpaid medical bills: Late payments on medical bills can be reported to the three major credit bureaus, which may negatively affect your credit scores. If unpaid, medical bills can eventually be sent to collections, further damaging your credit.
Impact of medical debt on different credit scoring models: Unpaid medical debt can affect your credit score differently, depending on the credit scoring model being used. For example, newer credit scoring models like FICO Score 9 and VantageScore 4.0 give less weight to medical debt compared to other types of debt, while older models treat medical debt more harshly.
The Medical Debt Collection Process
Understanding the medical debt collection process can help you take control of the situation and potentially minimize its impact on your credit scores.
How medical debt becomes a collection account: When a medical bill remains unpaid for an extended period, the medical provider may sell the debt to a collection agency. The collection agency then reports the debt to credit bureaus, which can cause a significant drop in your credit scores.
The role of collection agencies: Collection agencies are responsible for recovering unpaid medical debts. They may contact you through phone calls, letters, or even legal actions to collect the outstanding balance.
Statute of limitations on medical debt: The statute of limitations for medical debt varies by state, ranging from three to ten years. This is the time frame within which a collector can sue you for the unpaid debt. It’s important to know the statute of limitations in your state, as it can help you strategize your approach to dealing with unpaid medical debt.
Medical Bills Grace Period and Reporting
A grace period can provide some relief when dealing with medical bills, but it’s crucial to understand its impact on credit reporting.
How grace periods work with medical bills: Some medical providers may offer a grace period, typically 30 to 180 days, during which they will not report late or missed payments to credit bureaus. This gives you time to resolve any disputes, work with your health insurance company, or make arrangements to pay the bill.
Impact of grace periods on credit reporting: Even if your medical provider offers a grace period, it’s essential to pay your medical bills promptly. Once the grace period ends, late payments can be reported to credit bureaus, negatively impacting your credit.
Changes in medical debt reporting rules: Recent changes to credit reporting rules have made it more difficult for medical debt to impact your credit scores. These changes include a 180-day waiting period before medical debt can be reported to credit bureaus and the removal of medical collections paid or settled by insurance.
Can medical bills be removed from my credit report?
If you believe a medical collection on your credit report is inaccurate or unfair, you are entitled to dispute it. To dispute a medical collection, you’ll need to contact the credit bureau reporting the debt and provide supporting documentation to prove that the collection is inaccurate or unjust.
First, you’ll need to gather all relevant documents, such as medical bills, insurance Explanation of Benefits (EOB), payment records, and any correspondence with the medical provider or collection agency. This evidence will help you build a strong case when disputing the collection.
Then, once the credit bureau receives your dispute, they typically have 30 days to investigate the matter. If the dispute is resolved in your favor, the medical collection will be removed from your credit report, which may result in a boost to your credit score.
Does paying off medical collections improve my credit?
Paying off medical collections can have a positive impact on your credit, but the extent of the improvement depends on various factors.
The importance of paying medical debt: Paying off medical debt shows financial responsibility and can help prevent further damage to your credit.
How payment history affects credit scores: Your payment history makes up a significant portion of your credit score calculation. Settling medical debts can have a positive effect on your payment history, potentially improving your credit.
Settling medical debt for less than the full amount: In some cases, collection agencies may be willing to accept a lower amount to settle the debt. While this can help you save money, keep in mind that the partial payment may still be reported to credit bureaus, which could have a less favorable impact on your credit score compared to paying the debt in full.
Strategies for Managing Medical Bills
Effectively managing your medical bills can help prevent them from damaging your credit scores.
Negotiating medical bills with healthcare providers: Before a bill goes to collections, you may be able to negotiate with your healthcare provider to lower the cost, set up a payment plan, or request financial assistance.
Repayment plans and options: Many medical providers offer payment plans that allow you to pay your medical bills over time. This can make it more manageable to handle large medical expenses without hurting your credit scores.
Hiring a medical billing advocate: A medical billing advocate can help you review your medical bills for errors, negotiate with medical providers, and even guide you through the insurance claim process.
Seeking financial assistance and grants: Look for financial assistance programs, grants, or charities that may help cover the cost of your medical bills. Some hospitals and clinics also have programs for eligible patients.
Weighing the pros and cons of personal loans or credit cards: Using personal loans or credit cards to pay off medical debt can be an option, but consider the potential impact on your credit scores, as well as the interest rates and fees associated with these forms of borrowing.
What to do if You Can’t Pay Your Medical Bills
You have certain rights under the Fair Debt Collection Practices Act (FDCPA), which protects you from abusive or deceptive debt collection practices. Make sure you understand your rights and options when dealing with medical debt.
Keep an open line of communication with your medical provider and debt collectors. Discuss your financial situation, ask for assistance, or negotiate a payment plan to help manage your medical bills.
In extreme cases, bankruptcy may be a viable option to address overwhelming medical debt. However, it’s essential to consider the long-term implications, as bankruptcy can have a significant and lasting impact on your credit.
Preventing Medical Debt from Damaging Your Credit
Taking a proactive approach to managing medical expenses can help protect your credit score. Review your medical bill and insurance statement carefully for errors, and address any discrepancies promptly. Keep track of due dates and submit insurance claims as soon as possible to avoid late payments or collections.
Maintaining a record of your medical expenses can help you budget effectively and ensure you don’t miss any payments. Consider using financial management tools, apps, or a simple spreadsheet to stay organized.
You should also regularly review your credit report for any inaccuracies. By catching errors early, you can dispute them and potentially prevent damage to your credit score.
Keeping Your Credit Score Healthy
Some strategies for maintaining a healthy credit score include making timely payments on all your debts, keeping your credit utilization low, and diversifying your credit mix by using different types of credit responsibly.
Establishing a solid credit history takes time and consistent effort. By using credit responsibly, making timely payments, and avoiding high levels of debt, you can build a strong credit history that will serve you well in the long run.
Having a financial plan and an emergency fund can help you handle unexpected medical expenses without relying on credit, which could negatively impact your credit. Aim to save at least three to six months’ worth of living expenses in an emergency fund.
Conclusion
Unpaid medical debt can have a substantial impact on your credit, but understanding how it works and taking proactive steps to manage it can help you minimize its effects. Stay on top of your medical expenses, communicate with medical providers and debt collectors, and maintain a healthy credit score by following the strategies outlined in this article.
Remember, your financial health is just as important as your physical health, and taking control of your medical debt is a crucial step toward financial well-being.
Frequently Asked Questions
What happens when medical debt is sold to a collection agency?
When medical debt is sold to a collection agency, the agency becomes responsible for recovering the unpaid debt. They may contact you through phone calls, letters, or even legal actions to collect the outstanding balance. The collection agency also reports the debt to credit bureaus, which can cause a significant drop in your credit score.
What are the consequences of unpaid medical collections over $500?
Unpaid medical collection accounts over $500 can stay on your credit reports for up to seven years and have serious consequences, such as:
Significant damage to your credit score
Difficulty obtaining loans, credit cards, or favorable interest rates
Potential legal actions or wage garnishments
Increased stress and financial burden
It’s crucial to address unpaid medical debt promptly to minimize these consequences.
What should you do if you can’t pay a medical bill on time?
If you can’t pay a medical bill on time, consider the following options:
Communicate with your medical provider about your financial situation and ask for assistance or a payment plan.
Explore financial assistance programs, grants, or charities that may help cover the cost of your medical bill.
Negotiate with the medical provider to lower the cost or set up a payment plan.
Hire a medical billing advocate to help you review your bills and negotiate with the medical provider.
How can you negotiate medical bills?
To negotiate medical bills, follow these steps:
Review your bills and insurance statements for errors or discrepancies.
Research the average cost of the medical service in your area.
Prepare a case, explaining why you believe the bill should be reduced.
Contact your medical provider’s billing department and discuss your concerns.
Be prepared to provide documentation and evidence to support your case.
Remain polite and persistent throughout the negotiation process.
How can I get medical bills off my credit report?
To get medical bills off your credit report, the first step is to review your credit report for inaccuracies and verify the legitimacy of the medical collections listed. Inaccurate or unjust collections can be disputed, and if the dispute is resolved in your favor, the medical debt will be removed from your credit report.
To dispute a medical collection, contact the credit bureau reporting the debt and provide supporting documentation, such as insurance Explanation of Benefits (EOB), payment records, and any correspondence with the healthcare provider or collection agency. The credit bureau typically has 30 days to investigate the dispute, and if successful, the medical collection will be removed, potentially improving your credit score.
Another approach to getting medical debt off your credit report is by negotiating a “pay-for-delete” agreement with the collection agency. In a pay-for-delete agreement, you offer to pay the outstanding medical debt in exchange for the collection agency removing the collection from your credit report. This strategy, however, isn’t always successful, as collection agencies are not obligated to agree to such terms.
Investing has become much easier over the years thanks to the popularity of robo-advisors. Rather than working with a human financial advisor, a robo-investing uses algorithms to make a wealth management plan for each investor.
There are many advantages to using these services. Robo-advisors are typically less expensive than hiring a financial advisor. They allow you to start investing in the stock market even if you don’t have much money to start with.
So if you’re looking for an easy, inexpensive way to get started with investing, a robo-advisor could be a great option for you.
10 Best Robo-Advisors: Uncovering the Standout Performers
Here is an overview of our top picks for the best robo-advisors, as well as a brief explanation about what we like about each one:
1. Personal Capital
Key Features:
Hybrid robo-advisor with access to human financial advisors
Advanced investment strategies including tax optimization
Comprehensive financial planning tools
Retirement and savings goal tracking
High minimum balance requirement
Who it’s best for:
Personal Capital is ideal for more advanced investors with higher account balances, as well as those who seek a combination of automated investing with human financial advisor support.
Its comprehensive planning and retirement tracking features make it a powerful platform for long-term wealth management.
2. Wealthfront
Key Features:
Diversified portfolios with 11 different asset classes
Tax-loss harvesting for all investment accounts
High-interest cash account
Automatic rebalancing and portfolio optimization
College savings plan (529) support
Who it’s best for:
Wealthfront is a strong option for investors seeking a fully automated robo-advisor with a focus on tax efficiency and diversified investments.
Its high-interest cash account and college savings plan support make it an attractive choice for those looking to cover various financial goals.
3. Betterment
Key Features:
Goal-based investing tailored to personal milestones
Automatic rebalancing and tax-efficient strategies
Socially responsible investing options
Access to human financial advisors (with premium plan)
No minimum account balance
Who it’s best for:
Betterment is a great choice for beginners and experienced investors alike, who want a goal-oriented approach to investing.
With its socially responsible investing options and access to a licensed advisor (with the premium plan), it provides a well-rounded platform for a variety of investors.
4. Ally Invest
Key Features:
Low account minimum and no trading commissions
User-friendly online platform
Various research-based tools
No advisory fees for managed portfolios
Integration with Ally Bank for seamless banking and investing
Who it’s best for:
Ally Invest is an excellent option for new investors looking for a low-cost, user-friendly platform with no trading commissions.
Its integration with Ally Bank makes it a convenient choice for those who want to manage their banking and investing under one roof.
5. Vanguard
Key Features:
Hybrid robo-advisor with access to Vanguard personal advisor services
Low-cost, diversified investment options
Retirement and college savings plans
Strong reputation and established history
Higher minimum investment compared to other robo-advisors
Who it’s best for:
Vanguard Digital Advisor is ideal for investors seeking a trusted, established provider with a focus on low-cost, diversified investments.
Its hybrid model offers the benefits of automated investing along with access to a human advisor, making it a strong option for those with larger account balances.
6. M1
Key Features:
Fractional share investing
Customizable portfolios or pre-built expert portfolios
No management fees or commissions
M1 Borrow feature allows borrowing against your portfolio
M1 Spend feature integrates banking and investing
Who it’s best for:
M1 Finance is well-suited for investors who want a high level of customization with their portfolios, allowing them to create their own investment “pies” or choose from pre-built expert portfolios.
As a cost-effective solution, it appeals to budget-minded investors who appreciate the opportunity to leverage their portfolio through borrowing or take advantage of integrated banking services.
7. Ellevest
Key Features:
Focus on socially responsible investing
Gender-specific investment advice
Goal-based investing approach
Access to career coaching and financial planners
Low fees
Who it’s best for:
Ellevest is an excellent choice for investors who prioritize socially responsible investing and seek a platform tailored to the unique financial challenges faced by women.
Its goal-driven approach, coupled with access to career coaching and financial planners, makes it a comprehensive platform for value-oriented investors.
8. Facet
Key Features:
Comprehensive financial planning services
Access to dedicated Certified Financial Planner (CFP)
Flat-fee pricing model
No account minimums
Not fully automated
Who it’s best for:
Facet Wealth is ideal for individuals who want personalized investment management services but can’t afford the fees associated with traditional financial advisors.
Its flat-fee pricing model and access to a dedicated CFP provide a high level of personalization and support, making it a valuable option for those seeking a more hands-on approach to wealth management.
9. SoFi Automated Investing
Key Features:
No management fees
Low minimum balance requirement
Automatic rebalancing
Access to certified financial planners
Robust customer service
Who it’s best for:
SoFi Automated Investing is an excellent option for investors seeking a low-cost, accessible platform with strong customer support.
With no account fees and a low balance requirement, it’s a great choice for those just starting their investment journey or those who want access to financial planning resources without paying high fees.
10. Blooom
Key Features:
Focus on retirement savings (401(k)s and IRAs)
No minimum account balance requirement
Flat yearly management fee
401(k) analysis and optimization
Auto rebalancing and investment recommendations
Who it’s best for:
Blooom is a standout option for investors looking to optimize their retirement savings, specifically in 401(k)s and IRAs.
With its flat yearly management fee and no minimum account balance requirement, it’s an accessible platform for those who want to improve their retirement investment approach and maximize their long-term returns.
A Side-By-Side Comparison of the Best Robo-Advisors
Listed below is a side-by-side overview of what each robo-advisor has to offer.
BROKER
FEES
PROMOTION
ACCOUNT MINIMUM
Ally Invest
0.0%
No promotions offered
$100
Personal Capital
0.49%-0.89%
No promotions offered
$100,000
Wealthfront
0.25%
$5,000 in assets managed for free
$500
Betterment
0.25%
A year of free management
$0
FutureAdvisor
0.50%
Three months of free management
$10,000
Vanguard
0.30%
No promotions offered
$50,000
Bloom
$10 per month
$10 off first year
$0
M1 Finance
0.0%
No promotions offered
$0
Ellevest
0.25%
Possible $750 cash bonus
$0
Facet Wealth
$480 per year or more
No promotions offered
$0
SoFi Automated Investing
0.0%
Free career counseling and loan discounts
$100
Wealthsimple
0.40%-0.50%
$10,000 in assets managed for free
$0
How do robo-advisors work?
A robo-advisor is a specialized software that provides automated investment portfolios based on your goals and risk tolerance. Your risk tolerance is based on your answers to the questions provided.
Robo-advisors use algorithms to choose the right asset allocation based on your risk tolerance, investment goals, and time horizon, providing a customized and efficient approach to portfolio management. Some services give you access to human advisors as well.
Robo-advisors are a viable option for anyone who wants to start investing but can’t afford a portfolio management firm. Or if you just want a hands-off approach to investing, robo-investing is a great choice for diversifying your investments. These services typically have low management fees and require low account minimum balances.
So if you don’t have tens of thousands of dollars at your disposal but still want to start building an investment portfolio, using a robo-advisor has a much lower barrier to entry. There are many online services available on the market, but the ones listed above stand out from the pack.
How to Choose the Right Robo-Advisor for Your Needs
Selecting the right robo-advisor requires considering your investment goals, risk tolerance, and personal preferences. Here are some factors to help guide your decision-making process:
1. Determine your investment goals
Before choosing a robo-advisor, it’s essential to outline your financial goals. Are you saving for retirement, building an emergency fund, or working towards another specific milestone? Understanding your objectives will help you find a robo-advisor that aligns with your needs and offers relevant services.
2. Assess your risk tolerance
Risk tolerance refers to your comfort level with the potential fluctuations in the value of your investments. Some investors prefer a conservative approach, while others may be willing to take on more risk for potentially higher returns. Choose a robo-advisor that offers investment options aligned with your risk tolerance and provides suitable recommendations based on your preferences.
3. Compare fees and account minimums
Fees and account minimums are crucial factors to consider when selecting a robo-advisor. Some platforms charge a percentage of your assets under management, while others may have a flat fee.
Additionally, account minimums can vary widely, ranging from no minimum to tens of thousands of dollars. Choose a robo-advisor with a fee structure and minimum investment requirement that suits your financial situation.
4. Review available investment options
Different robo-advisors offer varying investment options, including individual stocks, bonds, ETFs, and mutual funds. Some platforms may also provide access to socially responsible investments or other specialized options. Ensure the robo-advisor you choose offers options that align with your goals and values.
5. Consider additional features and services
Many robo-advisors offer added features and services, such as automatic rebalancing, tax-loss harvesting, and access to human advisors. Some platforms may also provide banking services or wealth management tools. Assess which additional features are important to you and select a robo-advisor that meets your requirements.
6. Evaluate the user experience
The user experience, including the platform’s ease of use, customer support, and educational resources, is an essential aspect of choosing a robo-advisor. Look for platforms with intuitive interfaces, responsive customer service, and helpful resources to guide you through the investment process.
7. Read reviews and testimonials
Researching reviews and testimonials from current users can provide valuable insight into a robo-advisor’s performance, customer satisfaction, and any potential issues you may encounter. Look for reviews from reputable sources and users with similar objectives and investment preferences to ensure the robo-advisor is the right fit for your needs.
What should you look for in a robo-advisor?
When researching robo-advisors, it’s crucial to know what features and qualities are essential for a successful investment experience. Here are five things you should keep in mind when you’re considering different services.
Management fees: Most robo-advisors will charge an annual fee. This is usually calculated as a percentage of your total assets. You should make sure you understand the management fee structure because this will cut into your earnings.
Types of accounts offered: You should make sure you have a general understanding of the different accounts offered. For instance, retirement accounts like Roth IRAs and 401(k)s will have limits on how much you can contribute each year. Make sure you understand the difference between a taxable investment account and tax-deferred or tax-free accounts offered and how they benefit your financial goals.
Investments: It’s a good idea to familiarize yourself with the types of investments offered. For instance, many robo-advisors offer low-cost index funds, mutual funds, and ETFs. You should make sure that you like the accounts being offered and that they are fairly low cost.
Rebalancing: Since your investment portfolio will fluctuate, over time, it’s easy for it to become out-of-sync with your overall investing goals. You should look for a company that offers automatic portfolio rebalancing.
Access to financial advisors: And finally, one of the benefits of using a robo-advisor is that it’s a hands-off approach to investing. But some robo-advisors offer access to financial planners, and this offers many benefits. Having a financial planner involved brings a human element to your portfolio and makes it more personalized.
An Explanation of the Different Investment Options Available through Robo-Advisors
Robo-advisors provide investors with a variety of investment options to create a well-diversified portfolio tailored to their risk tolerance and financial objectives. Understanding the different options available can help you make informed decisions about your portfolio. Here are some of the most common options offered by robo-advisors:
1. Exchange-Traded Funds (ETFs)
ETFs are a popular investment option among robo-advisors due to their low costs and broad diversification. An ETF is a collection of securities, such as stocks, bonds, or commodities, that tracks a specific index or sector. ETFs trade on stock exchanges, just like individual stocks, and offer investors exposure to a wide range of asset classes, industries, and regions.
2. Index Funds
Index funds are mutual funds that track the performance of a specific market index, such as the S&P 500 or Nasdaq Composite. Like ETFs, they provide broad diversification and have low management fees. By investing in an index fund, you’re essentially buying a small piece of every company within that index, reducing the overall risk in your portfolio.
3. Mutual Funds
Mutual funds pool the investments of multiple investors to purchase a diversified portfolio of stocks, bonds, or other securities. They are less common in robo-advisor portfolios due to their higher fees compared to ETFs and index funds, some robo-advisors still include them as an investment option, particularly for specific sectors or strategies.
4. Bonds
Bonds are debt securities issued by governments, corporations, or other entities to raise capital. When you invest in a bond, you’re essentially lending money to the issuer in exchange for periodic interest payments and the return of the principal amount at the bond’s maturity. Bonds are typically considered less risky than stocks and can provide a steady income stream, making them a popular choice for conservative investors or those nearing retirement.
5. Real Estate Investment Trusts (REITs)
REITs are companies that own, operate, or finance income-producing real estate properties. They allow investors to gain exposure to real estate investments without the need to buy or manage properties directly. REITs can provide diversification and income potential to a portfolio, as they typically pay regular dividends from the rental income generated by their properties.
6. Socially Responsible Investing (SRI) and Environmental, Social, and Governance (ESG) Funds
SRI and ESG funds focus on investments in companies that meet specific ethical, environmental, social, or governance criteria. These funds allow investors to align their investment portfolios with their values and support businesses that have a positive impact on society and the environment. Some robo-advisors offer SRI and ESG options to cater to the growing demand for responsible investing.
7. Target-Date Funds
Target-date funds are designed to simplify long-term investing, particularly for retirement planning. These funds automatically adjust their asset allocation over time, gradually shifting from higher-risk investments like stocks to more conservative investments like bonds as the target retirement date approaches. This helps investors maintain an age-appropriate risk level in their portfolios without needing to make manual adjustments.
Tips for Monitoring and Adjusting Your Investment Strategy with a Robo-Advisor
While robo-advisors are designed to automate much of the investment process, it’s essential to periodically review your investment plan and make adjustments as needed. Here are some tips for monitoring and adjusting your strategy when using a robo-advisor:
1. Regularly review your risk tolerance and investment goals
Your risk tolerance and investment goals may change over time due to personal circumstances or market conditions. Ensure you update your robo-advisor profile to reflect any changes, as this will help the platform adjust your portfolio to align with your current objectives and risk appetite.
2. Monitor your portfolio performance
Keep an eye on your portfolio’s performance and compare it to relevant benchmarks or other investment options. This will give you an idea of whether your robo-advisor is effectively managing your investments and meeting your expectations. If your portfolio consistently underperforms, it may be time to consider other investment strategies or try a different robo-advisor.
3. Rebalance your portfolio as needed
While many robo-advisors automatically rebalance your portfolio, it’s still a good idea to review your investments periodically. If you notice significant deviations from your target allocation or if your investment goals change, you may need to adjust your portfolio accordingly.
4. Stay informed about market trends and developments
Even though robo-advisors handle most of the investment decisions for you, it’s essential to stay informed about market trends and developments. This will help you better understand your portfolio’s performance and make more informed decisions about any adjustments you may need to make.
5. Evaluate the robo-advisor’s features and offerings
Periodically review the features and offerings of your robo-advisor to ensure they still align with your needs and preferences. Some robo-advisors may introduce new investment options, tools, or services that could benefit your investment strategy. If you find a different robo-advisor that better suits your needs, don’t hesitate to switch.
6. Consider seeking professional advice
If you have concerns about your investment approach or need help understanding complex financial situations, consider consulting a certified financial planner or other financial professional. While a robo-advisor can be an excellent option for many investors, there may be times when personalized advice from a human advisor is necessary.
Bottom Line
Robo-advisors are an excellent solution for investors seeking a low-cost, user-friendly approach to growing their wealth. They provide the advantages of professional portfolio management and access to diverse investment options without the hefty fees typically associated with traditional financial advisors.
As you embark on your investment journey, remember to consider your long-term goals, risk tolerance, and personal values when selecting a robo-advisor. Make sure to evaluate management fees, account types, and available investment options to ensure your chosen platform aligns with your investment strategy.
Keep an eye on your portfolio and leverage the tools and features offered by your robo-advisor to maximize returns, optimize asset allocation, and stay on track to achieve your financial goals.
By understanding the full potential of robo-advisors and making informed decisions about your investments, you can confidently take charge of your financial future and reap the rewards of a well-managed, diversified portfolio.
You’re probably seeing headlines almost daily screaming about layoffs, layoffs, layoffs. The ubiquity of those stories may make you worry about your own job stability.
There was a 10% increase in layoffs last year from the previous year — 19.8 million in 2023 compared with 17.6 million in 2022, according to an analysis of Bureau of Labor Statistics data.
But monthly layoffs throughout 2023 were actually slightly below pre-pandemic levels after a massive spike during the start of the pandemic, BLS data shows.
“I’m cautiously optimistic. I think there are some signs that we’ll still see robust demand for workers, be that through hiring or a relative absence of layoffs,” says Nick Bunker, economic research director for North America at the Indeed Hiring Lab, which tracks employment trends.
The current job market is incredibly resilient, and labor market indicators show that workers who are laid off aren’t likely to stay unemployed for long. The unemployment rate has stayed steady between 3.4% and 3.9% since December 2021. Unemployment claims, meanwhile, are largely in line with pre-pandemic claims, Department of Labor data shows. That goes for initial claims — by those unemployed for the first time — and for continued unemployment claims — those who have remained unemployed beyond an initial claim.
“I’m not particularly concerned,” says Elise Gould, an economist at the Economic Policy Institute, a Washington, D.C., think tank.
If economists aren’t panicked, it means you probably shouldn’t be either. Unless, of course, you’re in one of the sectors that’s seen an uptick.
Where are layoffs happening?
Gould and Bunker both say layoffs are largely siloed in the information sector, which includes both tech companies and media companies (hence all those layoff headlines). They say that shedding is likely to continue into 2024.
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In the scope of the entire labor market, tech and media remain the outliers when it comes to layoffs, Bunker says. “This time last year there were concerns about what’s happening to the tech or media industries or the broader information sector. And you could see from the data that layoffs did tick up, but that was not representative of what you saw in the rest of the market — it didn’t spread out.”
The transportation and warehousing industry has also seen a rise in layoffs since companies began downsizing after more rapid expansion during the pandemic. But employment in the sector is still well above pre-pandemic levels.
Among other sectors, a Feb. 1 report by Challenger, Gray and Christmas, an outplacement company, shows the financial industry has had the most job cuts so far in 2024 with a total of 23,238 in January. That’s the highest monthly layoffs among financial companies since September 2018.
Gould says layoffs like these aren’t necessarily signs of industrywide distress. Some reflect the churn that happens in the economy in any given month — jobs lost are offset by jobs added, she says. Throughout 2023, the amount of jobs added often exceeded expectations. That trend remained in January: The amount of jobs added was double what was projected.
“There’s a lot moving,” says Gould.
Some other areas with layoffs include the food industry, which announced 6,656 layoffs, the highest number since November 2012. The retail industry announced 5,364 cuts in January — a 4,776% increase from December. But take that big, scary percentage with a grain of salt: Layoffs happen every year in the retail industry after the holidays are over because companies hire a ton of temporary workers to meet demand.
Layoffs spiked among tech companies in 2023
Last year was not a good one for tech and neither was the one before that. Let’s face it — this year isn’t looking much better. In 2023, more than 1,190 tech companies laid off some 262,000 workers, according to layoffs.fyi, which tracks layoffs in the tech industry.
The biggest layoffs in 2023 were at big-name companies, including Amazon (27,410 workers) Meta, which owns Facebook and Instagram (21,000), Google (12,115) and Microsoft (11,158).
But so far in 2024, over 34,000 employees have been laid off among more than 140 tech companies, according to layoffs.fyi. Some of the big names this year include Snap, which owns SnapChat, Zoom, PayPal, Salesforce, Microsoft, eBay, TikTok, Wayfair, Google, Discord, Audible and Rent the Runway.
Job availability may also be dwindling. “Employers are still looking to hire at fairly robust rates across a variety of sectors,” says Bunker. “And that’s not the case for job titles related to the tech sector; they’re still pretty depressed there.”
The downsizing is likely due to some pullback from the hiring spree in the tech industry during the start of the pandemic, experts say. And layoffs in this sector, particularly for highly skilled tech professionals, don’t mean workers stay unemployed for long. They’re likely being gobbled up by other companies pretty quickly, Bunker and Gould say.
“For workers that have higher levels of education, oftentimes their unemployment rates are much lower,” Gould says. “Oftentimes they are able to get back on their feet. Obviously, that average story does not tell everybody’s experience, and there are people that will be worse off.”
Randi Weitzman, executive director of technology talent solutions at Robert Half, an international human resource consulting firm, says workers in tech positions have an in-demand skill set that every company needs.
“It’s not so much we’re seeing the demand in high tech, but in industries like health care, manufacturing, government, retail, hospitality and leisure. We also saw an uptick in professional services. But all of those industries need IT professionals to help them drive their companies,” Weitzman says.
Media layoffs soared as companies struggle to profit
For the media, 2023 was a proverbial bloodbath. The industry, as a whole, announced 20,324 cuts last year — the highest since 2020, according to a report by Challenger, Gray and Christmas, Inc. As a subset of media, news announced 2,681 cuts, which was more than layoffs in 2021 and 2022 combined, according to the report. Bloomberg estimated news media losses even higher — about 3,000.
“I think that is very much a structural story that’s more about long-term trends,” says Bunker.
“The issue for the media is internet.”
Media was once mostly funded by advertising — “they were sort of a one-stop shop for lots of advertisers,” Bunker says. But the advent of the internet changed advertising, and media paid the price. The other issue, Bunker says, is consumer expectations of the price they pay for information, that is, most people don’t want to pay for articles.
“It’s just more difficult for media to be profitable, and so you’ve had a pullback and a decline in employment in that sector of the economy,” Bunker says.
The past year saw cuts at Buzzfeed News (15%), Time Magazine (15%), NPR (10%), Business Insider (8%), Gannett (6%), Vox (11%), Conde Nast (5%), Vice Media (around 10%) and others. The Washington Post completed 240 buyouts last year to avoid laying off workers.
Since the start of 2024, even more news media organizations have announced staff reductions.
On Jan. 17, Conde Nast announced it was laying off staff and folding Pitchfork into the GQ umbrella. On Jan. 19, Sports Illustrated announced it would be giving its entire staff the boot within 90 days. On Jan. 23, the Los Angeles Times announced it was cutting 115 reporters — about 20% of its staff. Back in June, it slashed its workforce by 13%. The paper was reportedly losing somewhere between $30 million to $40 million a year.
Layoffs aren’t just hitting news outlets. Streaming services have disrupted traditional television. On Feb. 13, the TV network giant Paramount announced it was laying off 3% of its staff.
Mass layoffs across the labor market aren’t likely in 2024
Despite some worrisome trends in the information sector, widespread layoffs throughout the labor market still aren’t likely to happen anytime soon under current conditions, experts say.
“The outlook for layoffs is a function of what you think a broader economic outlook is, and we’ve gotten very strong economic growth data as of late,” says Bunker.
While the labor market is tight, and the industries with layoffs are generally contained, it doesn’t mean we won’t see more employment churn coming this year. CEOs aren’t feeling the need to hoard labor as much as they once did: A quarterly survey of CEO confidence released on Feb. 8 by The Conference Board, a think tank, shows 23% of CEOs expect to lay off workers in the next 12 months, up from 13% from the previous quarter.
Los Angeles Times: Photo by Mario Tama/Getty Images News via Getty Images
Google: Photo by Michael M. Santiago/Getty Images News via Getty Images
Microsoft: Photo by Tim Heitman/Getty Images News for BIG3 via Getty Images
TikTok: Photo by Dan Kitwood/Getty Images News via Getty Images
Paramount Studios: Photo by Mario Tama/Getty Images News via Getty Images
Looking for the best summer jobs for teachers? Teachers, just like students, really enjoy the summer break. It’s a great time for them to relax and feel refreshed. But, this break can also be a chance for teachers to make extra money and even start a new business. I know many, many teachers who have…
Looking for the best summer jobs for teachers?
Teachers, just like students, really enjoy the summer break. It’s a great time for them to relax and feel refreshed. But, this break can also be a chance for teachers to make extra money and even start a new business.
I know many, many teachers who have side hustles in the summer. From part-time gigs to full-time summer businesses, there are many side jobs for teachers that you may want to try out.
Best Summer Jobs for Teachers
There are many summer jobs for teachers listed below. If you want to skip the list, here are some jobs that you may want to start learning more about first:
Flexible way to freelance – Proofreading
Side job for teachers from home – Blogging
How to make passive income as a teacher – Sell printables
Work as much or as little as you want – Flea market flipping
Creative job idea – Dog treat baker
Side job for teachers in summer – Grocery shopper
Camp counselor – If you love the outdoors, being a camp educator can be both rewarding and enjoyable, combining teaching with adventure activities.
Summer school teacher – Many schools have summer classes where you can continue teaching.
1. Teach summer school
One clear way for teachers to earn extra money in the summer is by teaching summer school.
It’s a good way to use your teaching abilities and make some additional income. The best part is that summer school happens during your summer break (big surprise, right?!), so it fits well with your schedule when you’re already off from regular school.
To start, check with your local school districts. A lot of them have summer school programs, and they usually share job opportunities on their websites or local education job boards.
2. Sell educational printables
Selling educational printables is a way for teachers to earn extra money. It’s especially good for those who want to make passive income as a teacher.
Your materials, like worksheets, lesson plans, and activities, are helpful to other teachers and parents looking for high-quality educational content.
Some places to sell your educational printables include:
Teachers Pay Teachers(TPT) – This is a popular site where millions of teachers buy and sell original educational resources.
Etsy – This site is known for handmade items, but also is a great place for selling educational materials and printables.
Educational printables include things like math problems, vocabulary cards, and science experiments. They’re useful for different grades, age groups, and learning goals, making it simple to improve regular teaching or homeschooling. You can share these resources online or print them for in-person classes too.
Recommended reading: How I Make $400,000 Per Year Selling Educational Printables.
Do you want to make money selling printables online? This free training will give you great ideas on what you can sell, how to get started, the costs, and how to make sales.
3. Flip used items for resale
Trying your hand at flipping items from flea markets and thrift shops can be a fun and money-making summer job for you as a teacher.
Flippers are people who find items at flea markets, yard sales, and thrift stores that are priced lower than their actual value. They then sell these items for a profit.
The summer is a great time to do this because there are typically a lot of yard sales, flea markets, and people just in general decluttering more (so you may find more things that people are giving away), where you can find items to resell.
Some items that you can buy and resell include clothing, antique furniture, collectible toys, sports equipment, electronics, rare books, jewelry, and more.
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This free workshop will teach you how to get into the flipping business. It will teach you how to resell furniture, electronics, appliances, and anything else you can find.
4. Tutor
During the summer, your teaching skills are still needed. Tutoring can be a flexible and fulfilling summer job that lets you work with students one-on-one either online or in person.
You may be able to tutor on subjects like math, foreign language, science, and more. You also may be tutoring kids, teenagers, or even adults.
To begin, you can look for tutoring jobs on online tutoring sites like Tutor.com. You can also sell in-person local tutoring sessions by reaching out to tutoring companies nearby or advertising your services on social media or in local Facebook parent groups for your area.
5. Camp counselor
Becoming a camp counselor could be a rewarding experience for you in the summer. In this job, you’d guide groups of children through indoor and outdoor activities, as well as educational programs at summer camps.
Your daily tasks would include keeping campers safe, organizing games, and giving both educational and emotional support.
Summer camps come in different types, ranging from general adventure camps to specialized ones focusing on sports, arts, or science.
6. Freelance bookkeeping gigs
If you like numbers and you’re a teacher, online bookkeeping can be a way to spend your summer.
A bookkeeper is someone who assists in managing and tracking the financial aspects of a business. They usually keep records of sales, track expenses, and generate financial reports.
People with virtual bookkeeping jobs work from home, handling their responsibilities remotely. Virtual bookkeeping is a great choice for remote work as all tasks can be completed online or with computer software, eliminating the need to go into an office physically.
Recommended reading: How To Find Online Bookkeeping Jobs
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This free training will teach you what you need to know to become a virtual bookkeeper and make money from home.
7. Swim instructor
If you’re a teacher who loves the water, becoming a swim instructor for the summer could be the perfect seasonal job for you. Your educational background gives you the ability to communicate and manage classes, which are important skills for teaching swimming.
To find swim instructor jobs:
Look on websites like Craigslist or Facebook for listings, including summer-specific roles.
Check out local community centers, pools, and summer camps.
Networking can help, so let friends and professional contacts know you’re looking.
Another job similar to this would be to become a lifeguard at a local pool.
8. Tour guide for local attractions
As a teacher, your ability to tell stories and lead can be very useful for a summer job as a tour guide. Your skill in explaining things well makes you a great choice to share history and local stories with visitors.
Check out jobs at museums, historical places, or become an ambassador for your city by guiding people to discover hidden treasures.
9. Pet care jobs
If you’re a teacher who loves animals, you may want to look into summer jobs in pet care, like being a dog walker or pet sitter. Your caring skills can easily transition to taking good care of furry friends while students are on break.
Rover is a website that connects pet owners with pet sitters and dog walkers. You can choose to do this job on weekends throughout the year or only open your schedule during the summer months – it’s your choice.
Starting on Rover is simple – you create a profile sharing your experience with pets and the services you can offer, such as dog walking, pet sitting, and house sitting.
After that, customers will send you requests, and you can discuss pricing. Rover handles the payment process, and you’ll get paid directly into your account.
Recommended reading: 7 Best Dog Walking Apps To Make Extra Money
10. Test prep instructor
As a teacher, your knowledge of academic subjects is very helpful, especially in the summer. Becoming a test prep instructor can be a great chance to help students in getting ready for their exams and earn extra money.
Test prep instructor jobs include subjects like math and English, and they cater to different education levels, from elementary school to college.
11. Sell your lesson plans
Teachers Pay Teachers (TPT) is a website made just for educators to buy and sell educational items, and it’s a well-liked side hustle for teachers. If you’ve created lesson plans, worksheets, or other teaching tools for your class, you can share them on TPT and make some extra income.
The school year may be over for you, but that doesn’t mean that you can’t create and sell lesson plans – these are bought year-round!
You can sell:
Lesson plans and unit studies
Worksheets and printable activities
PowerPoint presentations and interactive notebooks
Posters, charts, and visual aids
On Teachers Pay Teachers, the typical teacher can earn around an extra $300 to $500. However, some teachers make hundreds of thousands of dollars extra each year.
12. Coach a school sport
If you love sports and you’re a teacher, coaching a school sport during the summer might be a great match for your skills and interests.
Coaching a school sport is a great option within your own school district, as many schools need help with their sports teams. You can try coaching sports like soccer, basketball, volleyball, and track and field. Additionally, there are opportunities with after-school clubs such as yearbook, chess, choir, and more that can be a teacher’s side hustle.
13. Run a dog bakery
Beginning a dog bakery can be an enjoyable side job for teachers who adore both dogs and baking. By creating treats for dogs such as cupcakes, cookies, cakes, and more, you can earn an additional $500 to $1,000, or even more, each month.
Recommended reading: How I Make $4,000 Per Month Baking Dog Treats (With Zero Baking Experience!).
14. Sell handmade goods on Etsy
Etsy is a popular online marketplace that connects makers and shoppers looking for unique handmade goods. If you’re a teacher with a creative side, this could be a great site for you to showcase and sell your crafts during the summer months.
Some examples of what you can sell on Etsy that are related to school include:
Educational games and activities
Educational materials like lesson planners and printable worksheets
Handcrafted classroom decorations or educational games
Personalized items such as bookmarks, nameplates, or tote bags
But, you don’t have to only sell teaching-related items. You can sell many other things such as furniture, clothing, jewelry, soap, home decor, and more.
15. Work at a restaurant
Many teachers work part-time or full-time at a restaurant during the summer as servers, hosts, bartenders, and kitchen staff.
Working in restaurants can fit teachers well since they have flexible hours that can match your open summer schedule, and you can leave the job easily once school resumes in the fall.
I know many, many people who have done this, and I would say this is one of the top summer jobs for teachers.
16. Proofread
As a teacher, you likely excel at proofreading and can easily catch mistakes. Using these skills, proofreading can be a fantastic side job. By proofreading, you can help authors, website owners, students, and others in their writing while earning extra income.
Even the best writers can overlook errors in grammar, punctuation, and spelling. That’s why having a proofreader can be helpful for nearly everyone.
You can usually set your own hours, which is perfect for the irregular schedules you might have.
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This free 76-minute workshop answers all of the most common questions about how to become a proofreader, and even talks about the 5 signs that proofreading could be a perfect fit for you.
17. House sit
House sitting is a good option for teachers looking to make extra income during the summer months because a lot of people take vacations in the summer. As a house sitter, you are typically responsible for maintaining someone’s home while they are away. This can include watering plants, collecting mail, and making sure the house remains secure.
People hire house sitters to make sure their homes aren’t left empty, as a visible presence can discourage potential thefts.
To begin house sitting, you can join house-sitting websites to find gigs in your area or ask for referrals from friends and family. Starting with people you know for house-sitting and then using their references can expand your job search.
18. Blog
Blogging can be an enjoyable way for you, as a teacher, to earn extra money from home. Many teachers run blogs, and it makes sense – you can blog when you have free time, without sticking to a strict schedule.
To start your blog, first, pick a topic you’re passionate about, maybe something related to your teaching field or a hobby you enjoy. There are plenty of different niche ideas such as personal finance, travel, food, home, pets, and so much more.
You can earn money as a blogger through ways like:
Affiliate marketing – Share links to products or services related to your blog topic and earn a commission for sales made through your referral links.
Advertising – Add display ads or sponsored posts on your blog.
Courses and ebooks – Create courses or ebooks in your expertise area and sell them through your blog.
Learn more at How To Start A Blog FREE Course.
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Want to see how I built a $5,000,000 blog?
In this free course, I show you how to create a blog, from the technical side to earning your first income and attracting readers.
19. Freelance writing
If you’re looking for remote summer jobs for teachers, then becoming a freelance writer can be a great option.
Freelance writers create content for blogs, websites, magazines, newspapers, advertising companies, and more. You can find writing jobs on platforms like Upwork and Fiverr. Also, you can find clients independently by reaching out to websites you are interested in writing for.
I have been a freelance writer for years, and it all started as a side hustle. This is a great side hustle because you can choose to work as much or as little as you want, such as if you are only looking to do freelance writing in the summer months when you are not teaching at a school.
Recommended reading: 14 Places To Find Beginner Freelance Writing Jobs
20. Transcribe
An online transcriptionist’s role involves listening to video or audio files and typing out the content they hear. Various types of transcriptionists exist, including legal, general, and medical transcriptionists.
This job demands solid typing and listening skills, and the flexibility to work from home on your schedule. Transcriptionists typically earn an average of $15 to $30 per hour.
This is another great side hustle because you can choose to work as much or as little as you want, such as if you are only looking to make extra money during the summer months.
I recommend signing up for FREE Workshop: Is a Career in Transcription Right for You? You’ll learn how to get started as a transcriptionist, how you can find transcription work, and more.
Recommended reading: 18 Best Beginner Online Transcription Jobs To Make $2,000 Monthly
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In this free training, you will learn what transcription is, why it’s a highly in-demand skill, who hires transcriptionists, how to become a transcriptionist, and more.
21. Rent out an unused room in your home
If you have a spare room in your house, you might want to try renting it out over the summer. Platforms such as Airbnb or Vrbo make it easy for you.
I have rented out rooms to others in the past, and it has been a great way to make extra money. If you live in a touristy area, this could even be a gig that you only do in the summers and earn enough to cover your bills or at least pay for some of them.
22. Rent your garage space
If you have available storage space like a garage, driveway, closet, basement, or attic, you might consider renting it out to make extra money. This can be a profitable side hustle without requiring much of your spare time.
Neighbor is a platform where you can list your extra space for rent and potentially earn up to $15,000 per year.
This is a gig that may take up more than just your summer because typically people may store their stuff more long-term. But, you may find some people who only need to store things a few months at a time or perhaps you can also try to turn this into a year-round side hustle.
Recommended reading: Neighbor Review: Make Money Renting Your Storage Space
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You can use this website to list your unused space for rent and make up to $15,000 per year by doing so. With Neighbor, you can rent out your garage, driveway, basement, parking lot, shed, warehouse, carport, attic, street parking, or even a closet.
23. Teach English as a second language
If you’re a teacher looking for a seasonal opportunity, teaching English as a second language (ESL) during the summer can be a rewarding experience.
Many institutions are looking to hire for ESL teaching jobs, ranging from local schools to international language camps and online platforms. Here’s how you can get started and what you might expect:
Typically, ESL teachers need a bachelor’s degree and a teaching credential like TEFL (teaching English as a foreign language) certification. Some positions abroad might have additional requirements.
24. Answer online surveys
If you’re looking for a flexible way to earn extra cash during the summer, answering online surveys could be a great fit. Companies are always in search of genuine feedback to improve their products or services, and your opinions are valuable.
Now, this won’t be a full-time job, but you share your thoughts and can make extra money or free gift cards on your own schedule.
The survey companies I recommend are:
Swagbucks
User Interviews – These are the highest paying surveys with the average being around $60 for an hour of your time.
Branded Surveys
American Consumer Opinion
Pinecone Research
PrizeRebel
InboxDollars
Recommended reading: 18 Best Paid Survey Sites To Make $100+ Per Month
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User Interviews pays very well for market research studies and these are some of the highest paying online surveys, with each paying $50 to $100 or more. The average pays over $60.
25. Mystery shop
Companies hire mystery shoppers to gain insights into their customers’ experiences. They seek genuine opinions on products, feedback on customer treatment, evaluations of phone call interactions, and more. Mystery shoppers play a key role in providing valuable feedback to companies.
This is a great summer side hustle for teachers because you can simply pick up mystery shopping jobs when you need them. So, it’s completely okay and normal to only accept jobs during the summer.
Here’s what mystery shoppers do:
Visit businesses anonymously.
Complete specific tasks, such as purchasing a product or asking questions.
Record your observations.
Provide a detailed report on your experience.
I have done many secret shopping jobs over the years, and I often got mystery shops that provided me with $100 to cover a free dinner.
Recommended reading: How To Become A Mystery Shopper
26. Find gigs on Craigslist
Craigslist can be a goldmine for finding great summer jobs for teachers. It’s a site where individuals and businesses post quick jobs to make extra money.
You can find these gigs by going to the Craigslist website for your city or area. Right on the home page, you’ll spot a section labeled “Gigs.” This is where short-term job offers are posted, ranging from labor-intensive tasks to more skill-specific roles.
Here are some jobs I have found in the past on Craigslist:
Moving boxes to a new house
Deep cleaning a home
Putting together new furniture out of a box
Taking down a shed in a backyard
Handyman
Movie extra
Event parking help
27. Deliver groceries with Instacart
If you’re a teacher looking for flexible summer jobs for teachers, try delivering groceries with Instacart.
Grocery delivery services, like Instacart, are in demand as more people prefer having someone else do their grocery shopping.
Becoming a personal grocery shopper with services like Instacart can earn you an average of $15 to $20 per hour for delivering groceries. You’re paid per order, and you get to keep 100% of your tips. The flexibility allows teachers to choose their schedules, working in the evenings, on weekends, or even exclusively during the summer.
Recommended reading: Instacart Shopper Review: How much do Instacart Shoppers earn?
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Instacart is a popular website for people looking to earn extra money shopping for and delivering groceries. Instacart gives you the option to turn your free time into a chance to make some extra money.
28. Real estate agent
If you’re a teacher looking for a productive way to spend your summer months, you may consider becoming a real estate agent.
Some teachers work as real estate agents alongside their full-time teaching jobs. This is possible because you can list and sell homes during weekends, breaks, evenings, and over the summer.
However, selling homes may have some challenges, as clients may occasionally require your full attention during the day, and you might be occupied with teaching. This is something to consider before getting into real estate as a side job.
29. Virtual assistant
If you’re a teacher looking for a flexible summer job that pays well, becoming a virtual assistant (VA) could be a perfect fit. As a VA, you can use your organizational skills and attention to detail to help businesses and entrepreneurs from the comfort of your home.
Some examples of what a VA does include:
Email management – Keep inboxes organized and respond to emails on behalf of your clients.
Scheduling – Manage calendars, arrange meetings, and send reminders.
File organization – Keep digital files in order using online tools like Google Drive or Dropbox.
Recommended reading: Best Ways To Find Virtual Assistant Jobs
30. Drive for Uber or Lyft
Driving for Uber or Lyft can give you a flexible way to earn money during your summer break.
You get to set your own hours and work as much or as little as you desire, meaning you can align this job with your summer plans.
31. Library assistant
As a teacher, your skills are a natural fit for a summer position as a library assistant. Libraries often seek additional staff during the summer months, providing a great opportunity for you to engage in a role that supports literacy and learning in a calm environment.
Your job may include doing things such as:
Organizing books – Keeping the library orderly and materials easy to access
Circulation desk duties – Checking books in and out for people
Helping library users – Helping visitors find books and resources, and answering inquiries
You can simply contact libraries near you to see if they are hiring.
32. Driver’s ed teacher
Teaching driving lessons to teenagers and adults is a popular side hustle for teachers. If you’re interested, you can check if the high school near you needs a teacher for this subject. Alternatively, reach out to a local driving school to inquire about potential teaching opportunities.
Driving instructors make around $20 an hour more or less, depending on where you live.
Back when I was in high school, I actually took my driver’s ed course at my high school in the summer. It was an easy summer credit, and I also got a discount on my car insurance. One of the teachers taught this course and it seemed fairly easy (other than having to deal with a bunch of us high school students over the summer who were wanting to learn how to drive, ha!).
33. Babysitting
Babysitting can be a side job for teachers, and depending on your location, you might earn around $15 to $25 per hour. Parents tend to prefer hiring teachers as babysitters due to their extensive experience with children.
Becoming a babysitter can be a great way to make extra money in the summer as well, as you can choose to sign up for babysitting jobs that are only during this time.
Plus, many families need extra help during the summer because school is not in session, but the parents still have to work. That is where you come in!
Another job similar to this would be elderly companion care.
Frequently Asked Questions
Below are answers to common questions about finding summer jobs for teachers.
Do teachers still make money during the summer?
Yes, many teachers do receive income during the summer, especially if their annual salary is distributed over 12 months. However, if you’re paid only for the months you work, looking for summer employment can supplement your income during this period. Not all teachers have summer gigs, but those who want to make income in addition to their teacher salaries may try to find something in the summer.
What is the best summer job for a teacher?
The best summer job for a teacher often capitalizes on their skill set. Positions like tutoring, educational program coordination, or teaching summer school are highly relevant options. Teachers might also consider roles in curriculum development or educational content creation.
What jobs exist for substitute teachers looking for summer employment?
Substitute teachers can find summer jobs in other educational roles, such as tutoring, mentoring, or working in summer camps. Many community centers and educational institutions also look for qualified professionals to lead summer workshops or help with childcare programs.
What are some summer jobs for teachers from home?
Teachers looking for summer jobs from home can find opportunities such as online tutoring or virtual summer school teaching. Other side gig ideas include writing content for websites, blogging, transcribing, and more.
Best Summer Jobs for Teachers – Summary
I hope you enjoyed this article on the best summer jobs for teachers.
As you can see, there are many ways to make extra money over your summer vacation.
Teachers have lots of options during the summer. They can stick with education by teaching summer school or tutoring. Or, they can try something new like being a camp counselor or giving local tours.
Teachers who like trying out new things might sell educational printables, sell things for profit, or sell services like pet care or freelance writing.
What do you think are the best jobs for teachers in the summer?
Eligible U.S. veterans, service members, National Guard and Reserve members (and in some cases, veterans’ spouses) can qualify in all 50 states for up to 100% of a home’s purchase price with no down payment. Better’s rate for VA loans was 6.375% as of Tuesday afternoon, the company said.
Garg expects that “a large percentage” of VA loan applicants through Better will also be able to qualify for the company’s One Day Mortgage program, which was launched a year ago and allows customers to apply for a mortgage, get preapproved, lock their rate and receive a commitment letter within 24 hours. Garg said this will be one of the company’s competitive advantages in the VA space.
Conventional loans account for 95% of Better’s portfolio, with the remaining 5% tied to other products such as jumbo loans. The lender’s overall production fell from $57 billion in 2021 to $11 billion in 2022. In third-quarter 2023, it posted mortgage volume of $731 million, down from $900 million in Q2 2023 and $1.1 billion in Q3 2022.
“VA loans are 12% of the mortgage market,” Garg said. “So, we are hoping that we can get to the industry average, at least having 10% of our volume to be VA loans in 2024.”
Better has a small team of employees dedicated to VA loans, which Garg said will grow in correspondence to the company’s market share in the segment. He did not disclose the current size of the team. The VA team reflects a different strategy for the company when hiring employees, Garg added.
“More recently, we’ve been hiring loan officers, processors and underwriters as the company has been starting to grow,” Garg said. “The loan officers we’ve been hiring are industry experts that we’ve been bringing onto our platform, rather than the traditional noncommissioned loan officers that we used to hire in the past and who used to be usually people who had never worked in the industry.”
Better had to adapt its operations to a different workflow for VA loans, which have different forms, including veteran status checks. The company will target customers online and via social media to work with its fulfillment center. The plan is to distribute the product through its network of partners as it scales.
Looking ahead, Garg expects the Tinman platform to expand to Federal Housing Administration (FHA) loans, nonqualified mortgages (non-QM), home equity lines of credit and other consumer finance products unrelated to home lending.
Better Home & Finance Holding Co., the parent of Better.com that went public in late August, is struggling financially. The company posted a loss of $340 million in the third quarter. Its stock was trading at $0.58 on Tuesday afternoon and the company is at risk of being delisted at Nasdaq. Garg declined to comment.
“All I can say is that it’s great to have over, you know, the $530 million of new capital that we raised; it is incredibly powerful in a market where mortgage companies are very thinly capitalized and don’t have the room to invest in growth coming ahead,” he said. “And so we’re very excited for what is coming next.”