Statute of Limitations on Debt vs. the Reporting Period on Credit Reports

When it comes to understanding your credit score and credit reporting, there are a lot of terms to remember. Because of this, sometimes it’s easy to get confused when it comes to knowing your rights and improving your credit.

woman on laptop

Two of the most commonly confused concepts in credit reporting are the statute of limitations on collecting debt, and the reporting period on credit reports. While these are two separate, non-related concepts, getting the two confused can potentially cause problems with your credit score.

Understanding the Statute of Limitations

The statute of limitations for any debt is the length of time a creditor has to bring legal action against you in order to collect the debt. This date varies from state to state and may be anywhere from three to ten years. It may also change depending on the type of debt.

In some instances, such as a domestic judgment, the statute of limitations may be even longer – up to 20 years. However, once this date has passed, if a creditor tries to sue you to collect the debt, you have the legal means to successfully defend against having to make payments.

When the Statute of Limitations Runs Out

An important thing to remember is that the statute of limitations runs out after the last missed payment or activity on the account. So, if your account is past the statute of limitations, but you make a payment, you’ve reset the clock. This means you will have to wait for another three to ten years for the collection period to expire.

In some states, just the promise to make a payment can reset the statute of limitations, whether or not you actually follow through on the payment itself.

It’s very important to watch what you say in any phone call, letter, or other communication with a creditor so that you don’t accidentally reset the statute of limitations. In the meantime, your creditor will be able to legally sue you over the debt. They can also attempt to recover not only what you owe, but interest on it as well.

Calculating the Statute of Limitations:

  1. Add six months to the last date of activity on the account (payment or otherwise).
  2. Add the number of years for your state’s statute of limitations.
  3. After this date, your creditors can no longer successfully file suit, as long as you can prove that the statute of limitations has expired.

Example:

  1. You opened an account in May of 2015 and stopped making payments on June 3rd, 2016. Add six months to June 3rd for a date of December 3rd, 2016.
  2. Your state’s statute of limitations is 4 years. Add 4 years to December 3rd.
  3. Your creditors can no longer sue you for payment of that debt after December 3, 2020.

How to Find Your State’s Statute of Limitations

It’s easy to find the details on your state’s specific statute of listings. We provide a comprehensive resource guide for you here. Each state’s time limits are broken up into four separate debt categories:

  • Open-ended account: This includes any revolving debts like credit cards and retail store cards, as well as lines of credit.
  • Oral agreement: Any promise that was made verbally, but wasn’t written down.
  • Written agreement: A loan or other agreement with terms signed by both you and a creditor.
  • Promissory note: A loan with specific terms on how often certain amounts should be paid, what interest is charged, and by what date. Common examples include mortgages and student loans.

The length of the statute of limitations for each type of debt can vary greatly by each state. California, for example, has only a two-year limit for oral agreements but has a four-year limit for the other three types of debt.

Iowa is a much stricter state, requiring a ten-year statute of limitations for promissory notes and five years for everything else. Other strict states include Louisiana, Missouri, Ohio, Rhode Island, and Wyoming.

Some more lenient states include Washington, South Carolina, Oklahoma, New Hampshire, North Carolina, Mississippi, and Maryland. If you’ve moved since incurring the debt, check your terms of agreement to figure out which state’s statute of limitations applies to you. In some cases, it might be the state in which you took on the debt, not the one in which you currently live.

Understanding the Credit Reporting Period

By contrast, the credit reporting period only states how long the record will remain on your credit report, regardless of the actual time left on the statute of limitations. In most cases, after seven years, the debt will be removed from your credit report, whether or not you actually paid the debt.

Here is where things can be confusing: Say the statute of limitations is 3 years in your state, and your debt is 4 years old, with no account activity in the last 4 years. This means that the statute of limitations has passed, even though the debt is still listed on your credit report.

Debt collectors may contact you and try to get you to make a payment on this debt. But, even if you don’t pay anything, the debt will be removed in another three years.

However, if you make a payment on that account, you renew the statute of limitations. And the debt may also be re-listed as new debt. So any missed payments will once again have a negative impact on your credit score.

Dealing with Debt Collectors

Once your statute of limitations has expired, a collection agency can’t legally sue you, but that doesn’t mean they can’t keep trying to get you to pay the outstanding debt.

There is a way, however, to get the debt collector to stop attempting to collect. By sending a notification of SOL expiration letter, you can inform the creditor that you know the statute of limitations has passed and that they should stop contacting you.

Keep the language simple and straightforward and don’t claim ownership of the debt. Look at some letter templates as examples of what information you should include and what you should definitely not include for the best results.

How to Get Help with Your Credit

If you’re confused about the statute of limitations and the credit reporting period, you aren’t alone. There are several credit repair services that can help you, and that will offer sound advice of when it’s prudent to pay the bill and when it’s more prudent just to sit tight.

Getting professional advice may help you to avoid unnecessary problems with your credit score. Remember, even the slightest incorrect communication with a creditor can reset your statute of limitations.

Working with a professional puts them on the phone instead of you, so your emotions and nervousness don’t get the best of you. That way, you can successfully put old debts in the past and enjoy the benefits of having better credit.

Source: crediful.com

22 Cities Where Home Appreciation Is Spiking

Couple looking at their old home
Photo by Hurst Photo / Shutterstock.com

Extreme demand for homes is pushing home values up at a rate not seen since before the Great Recession, a new Zillow report finds.

Several trends — including new millennial homebuyers, record-low interest rates, trends related to the coronavirus pandemic and the relatively small pool of homes for sale — have converged to heat up the market. The hot sellers’ market is a contrast to flat growth in rental prices nationally, as we reported in “Rent Prices Have Dropped in These 9 Formerly Hot Markets.”

The Zillow Home Value Index rose 9.1% from January 2020 to January 2021, the report says. Year-over-year home value growth hasn’t been this high since June 2006.

That rate may even pick up a bit: Zillow economists expect values to rise 10.1% from January 2021 to January 2022.

The demand has shortened the length of time that homes stay on the market, to a median of just 18 days as of mid-January. Compare that to 46 days at the same time last year and the year before.

A demographic bomb is a factor in the hot market. Millennials — defined by Zillow as Americans ages 25-34 — are entering their peak homebuying years. The number of these millennials increased by 12% — or, about 4.9 million people — between 2010 and 2020.

The generation’s size adds to the housing demand. Also, younger buyers are less likely than older ones to sell a previous home when they buy, which is expected to help keep the pool of homes for sale tight.

Government-stoked low mortgage rates — averaging 2.74% for a fixed-rate 30-year mortgage in January — are driving demand as buyers try to seize the opportunity to either pay less for a home or buy a more expensive one than they otherwise could.

Says Zillow:

“An extraordinary number of home buyers, with budgets supercharged by rock-bottom mortgage interest rates, are competing over a limited supply of homes for sale.”

The pandemic is a final factor. Many workers are now clocking in virtually instead of at the office, driving some to seek larger homes and others to move to smaller, more-affordable markets, Zillow says.

While home values increased in all of the 50 largest metro areas in the U.S. from January 2020 to January 2021, some have seen steeper growth rates than others.

Here are the 22 major markets where home values grew 10% or more, along with their typical home price and their home price growth rate:

  • Phoenix: $335,975 (up 17.1% from January 2020 to January 2021)
  • San Jose, California: $1,314,799 (up 14.2%)
  • Austin, Texas: $384,446 (up 13.7%)
  • Salt Lake City: $436,390 (up 13.7%)
  • San Diego: $689,361 (up 13.5%)
  • Seattle: $594,223 (up 12.8%)
  • Tampa, Florida: $257,499 (up 12.8%)
  • Milwaukee: $219,381 (up 12.1%)
  • Cincinnati: $208,352 (up 12%)
  • Providence, Rhode Island: $357,761 (up 12%)
  • Riverside, California: $433,226 (up 11.7%)
  • Buffalo, New York: $193,583 (up 11.4%)
  • Sacramento, California: $478,817 (up 11.3%)
  • Indianapolis: $204,141 (up 11.3%)
  • Memphis, Tennessee: $174,063 (up 11.3%)
  • Cleveland: $176,069 (up 11.1%)
  • Charlotte, North Carolina: $265,397 (up 10.9%)
  • Columbus, Ohio: $234,276 (up 10.8%)
  • Philadelphia: $277,775 (up 10.6%)
  • Kansas City, Missouri: $227,059 (up 10.6%)
  • Pittsburgh: $178,282 (up 10.4%)
  • Detroit: $198,979 (up 10.3%)

If you’re in the market for a new home or refinancing for your existing home, check out the mortgage rate comparison tools in Money Talks News’ Solutions Center.

Disclosure: The information you read here is always objective. However, we sometimes receive compensation when you click links within our stories.

Source: moneytalksnews.com

6 First Time Home Buying Mistakes I Made When I Bought My First House

Are you thinking about buying a house? Do you want to avoid common home buying mistakes?

I bought my first house when I was only 20 years old. Even though that was a little over 11 years ago, I have looked back many times and wondered how I did it.first time home buying mistakes

first time home buying mistakes

I made so many first time home buyer mistakes!

Of course, I was young and had a lot to learn. But, I definitely could have done more research to avoid many of the home buying mistakes I made, like not comparing interest rates or understanding the total cost of buying a home.

I’m not alone in how I approached buying a house. There are many people who simply do not understand everything that goes into buying a house, and that’s something that can negatively impact your finances and cause stress. 

Over the years, I have received many emails about buying a house in your early 20s or when you’re young. I also get lots of questions from people who have been renting and are thinking about buying their first home.

I thought it would be interesting to look back on the home buying mistakes I made and explain how to avoid the same mistakes I made. Hopefully you can be a better prepared home buyer than I was!

The mistakes first time home buyers make can cost you money and may even lead to regret. Perhaps you’re wondering why you even bought your home!

One thing you may not know about me is that the first house I ever lived in was actually my own. Growing up, we always lived in small apartments and rented. I wanted to have a home of my own – moving so often as a child was tiring.

Buying a house and being a homeowner was a completely new thing for me.

I had never done yard work, had to deal with house maintenance, home repairs, or anything like that.

I was as new as could be when it comes to living in a house!

It was a buyer’s market when we started searching. It was back in 2009, so the housing market was coming down. This meant that a monthly mortgage payment wasn’t too much more than rent at an apartment.

I felt like I was ready to buy my first house, and I needed a place to live.

So, buying a house seemed like a logical decision.

I made many home buying mistakes, like I said. While I made it through everything, my mistakes could easily have led to major financial trouble.

Read on below to learn more about mistakes home buyers make and my first-time home buyer tips.

Related content on home buying mistakes:

Here were some of my home buying mistakes.

 

first-time home buyer mistakes

This was our first house.

I didn’t prepare.

I was only 20, so I didn’t really understand how things worked, even though I thought I did at the time.

I found an online mortgage lender, and back in 2009, that was kind of a new thing. The company ended up doing a bunch of odd things and made a bunch of paperwork mistakes. It almost seemed scammy because online mortgages were so new at the time.

While my realtor was great and a family friend, she recommended a mortgage loan officer to me, and I just used that person.

The loan officer was great and very friendly.

But, I didn’t compare interest rates at all, I didn’t try to raise my credit score before I started looking at homes, and more.

Instead, I should have been paying attention to my credit score and worked to increase it before I started looking at rates. Then, I should have applied with multiple mortgage lenders and found the best interest rate.

Basically, I didn’t prepare.

Had I spent time increasing my credit score and shopping around for better rates, I could have gotten a better interest rate and saved money on mortgage payments.

While a small percentage difference in interest may not sound like much, it makes a big difference in how much you pay each month and how much you pay over the course of your loan.

For example, here’s the difference in two 30-year mortgages on a $200,000 home (this is before annual taxes being added in to the monthly payment):

  • With an interest rate of 3.25% your monthly payment would be $870, and you would pay $313,349 over the course of your loan.
  • With an interest rate of 4% your monthly payment would be $955, and you would pay $343,739.

That’s a difference of $85 a month, and you will have paid $30,000 more once your mortgage is paid off.

Looking back, I would have done more research on the home buying process and the factors that impact interest rates.

One of the easiest things you can do to avoid this mistake is to start paying attention to your credit score. You can receive free credit reports and credit scores, and I recommend reading Everything You Need To Know About How To Build Credit to learn more.

I avoided adding up all of the costs because it was scary.

Okay, so I knew that having a house could/would be expensive, and luckily we were fine, but wow, are there a lot of costs!

I avoided adding them all up for a while because I knew they would be higher than I thought. Eventually I did, and I was right – adding everything all together was a doozy.

We didn’t start adding up these costs until we were farther along in the buying process, and this is one of the home buying mistakes many people make. 

There are lots of people who only think about their mortgage payment, but there are so many more costs associated with buying a home

Before we purchased a home, we should have gone through all of the typical costs of owning a house and compared it to our housing budget. Comparing your current budget to your new homeowner’s budget will tell you whether or not you can actually afford to buy a home.

Here are some of the homeownership costs you want to consider:

  • Gas/propane.  Many homes run on gas in order to have hot water, to use the stove, and so on.
  • Electricity. Generally, the bigger your home then the higher your electricity bill will be.
  • Sewer. On average, your sewer bill may cost around $30 a month from what I’ve seen.
  • Trash. This isn’t super expensive either, but it’s still a cost to include.
  • Water. Water bills can vary widely. I know many who live in areas where the average water bill is a few hundred each month.
  • Property taxes. Property taxes can vary widely from town to town. You may find yourself looking at two similar houses with similar price tags, but the property taxes may differ by thousands of dollars annually. That is a LOT of money. While it may seem small when compared to the actual home purchase price, remember that you have to pay property taxes annually and a difference of just $3,600 a year is $300 a month for life.
  • Homeowners insurance. Homeowners insurance can be cheap in some areas but crazy expensive in others. Don’t forget to look into the cost of earthquake, flood, and hurricane insurance as well as that can add up quickly depending on where you live – not thinking about these was one of the home buying mistakes I made.
  • Maintenance and repairs. Even if your home is brand new, you may have to pay for repairs, which is something that will come up eventually. No matter how old your home is, repair and maintenance costs will eventually come into play.
  • Homeowners association fees. This can also vary widely. You should always see if the house you are interested in is in an HOA because the fees can be high and there may also be rules you don’t like.
  • Home furnishings. Furnishing your home can be done cheaply, but I know some who buy huge homes but can’t afford to put anything in them, such as a table, a bed, and so on. Why own a $500,000 house if you don’t have any furniture?

 

I probably should have spent less on the actual house.

While the house we bought was less than the amount we were pre-approved for, I definitely think that we could have found a house for even less.

We bought at the top of our budget, and this is one home buying mistake that can really get you in trouble.

Thinking back on it, the amount that we were pre-approved for, as young 20 year olds, was pretty insane. I am very glad that we did not buy a house that was that expensive.

It’s not uncommon to be approved for much more than your budget realistically allows for. Just because the bank approves you for a $350,000 mortgage, for example, does not mean you can afford to buy a house at that price.

We bought at the top of our budget thinking that we would get better jobs eventually. While that worked out in our favor since we were each barely making above minimum wage, it was a decision that could have ended quite badly.

 

We were living paycheck to paycheck and didn’t have an emergency fund.

We were young and didn’t have high paying jobs when we bought our house. In fact, we were barely making more than minimum wage at our jobs.

While we never racked up credit card debt, I did accrue student loans and we were living paycheck to paycheck.

Had one major (or even minor) thing happened with our new house, the only option would have been taking on debt. This is not where you want to be if you have just taken out a big mortgage. 

The best way to avoid this first time home buyer mistake is to set some money aside for emergencies before you buy, and to buy a house that fits in your budget. You want to be able to continue saving while making your new monthly home payments.

 

Make sure your home insurance covers what you need.

While I never had to use my home insurance, there were a few things that it did not cover, and I should have at least thought about them beforehand.

One of the biggest coverage issues was flooding. Flooding is a common problem where we lived in Missouri, yet I didn’t realize until a few years after I had already lived in the house that flooding was not covered unless you signed up for an additional policy.

Now, we weren’t in a floodplain – your lender may require you to buy special flood insurance if you live in a floodplain – but basement flooding was still a fairly common issue where we lived. 

Another special insurance consideration are earthquakes. Many normal home insurance policies do not cover earthquakes.

You can avoid this home buying mistake by researching what is the best kind of insurance policy for where you live. Floods and earthquakes aren’t a problem everywhere, but in some places you may want to have that kind of coverage.

 

Have a larger down payment.

We were 20, and we didn’t have a lot of money saved up before we bought our house.

Therefore, we did not put down a 20% down payment. That might sound like a lot, but 20% is the recommended amount to put down if you want to avoid PMI (private mortgage insurance).

A lender charges PMI because putting less than 20% down makes the loan look like a riskier investment for them. PMI protects lenders from borrowers who default on their loans.

PMI is normally around 0.5% to 1% of the mortgage annually, and it’s added to your monthly payment. If you borrowed a $200,000 mortgage, you would likely pay between $1,000 to $2,000 a year until you paid down enough of your mortgage principal to remove PMI.

We put less than 5% down towards our house purchase, and this led to us having PMI.

I don’t remember exactly how much we paid each month for PMI, but looking back, I could have used that money to pay off my student loans faster, save more, and so on.

While having a larger down payment isn’t one of the home buying mistakes I could have easily changed back then, in general, just saving more money instead of frivolously spending it in the beginning would have been a good decision.

Related content: Can You Remove PMI From Your Mortgage?

 

So, what’s going on with the house now?

As many of you know, we sold our house over 5 years ago. We wanted to travel more, and selling our house made more sense than keeping it.

We actually sold it for quite a loss, as the market was further down than when we bought it.

I’m happy that we bought the house – it taught us a lot, gave us responsibility, and gave us a place to live! And, it taught us how to avoid home buying mistakes in the future.

One of the things I haven’t mentioned is what we paid each for our mortgage. Our monthly payments were just under $1,000. 

Where we lived in the midwest is known for being a low cost of living area. I can’t imagine how we would have bought a house in some other parts of the U.S.

But, the low cost of living meant that buying a house at 20 was more doable.

Is it normal to regret buying a house? Is it normal to have buyers remorse after buying a house?

I don’t know what the statistics are on home buyers remorse, but it does happen. Hopefully with the tips before buying a house above, you can avoid that as much as possible.

Also, being realistic when it comes to what to expect when buying a house can help greatly as well.

What home buying mistakes did you make when you purchased your home?

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Source: makingsenseofcents.com

Mistakes I Made When I Bought My First House At The Age of 20

Are you thinking about buying a house? Do you want to avoid common home buying mistakes?

I bought my first house when I was only 20 years old. Even though that was a little over 11 years ago, I have looked back many times and wondered how I did it.first time home buying mistakes

first time home buying mistakes

I made so many first time home buyer mistakes!

Of course, I was young and had a lot to learn. But, I definitely could have done more research to avoid many of the home buying mistakes I made, like not comparing interest rates or understanding the total cost of buying a home.

I’m not alone in how I approached buying a house. There are many people who simply do not understand everything that goes into buying a house, and that’s something that can negatively impact your finances and cause stress. 

Over the years, I have received many emails about buying a house in your early 20s or when you’re young. I also get lots of questions from people who have been renting and are thinking about buying their first home.

I thought it would be interesting to look back on the home buying mistakes I made and explain how to avoid the same mistakes I made. Hopefully you can be a better prepared home buyer than I was!

The mistakes first time home buyers make can cost you money and may even lead to regret. Perhaps you’re wondering why you even bought your home!

One thing you may not know about me is that the first house I ever lived in was actually my own. Growing up, we always lived in small apartments and rented. I wanted to have a home of my own – moving so often as a child was tiring.

Buying a house and being a homeowner was a completely new thing for me.

I had never done yard work, had to deal with house maintenance, home repairs, or anything like that.

I was as new as could be when it comes to living in a house!

It was a buyer’s market when we started searching. It was back in 2009, so the housing market was coming down. This meant that a monthly mortgage payment wasn’t too much more than rent at an apartment.

I felt like I was ready to buy my first house, and I needed a place to live.

So, buying a house seemed like a logical decision.

I made many home buying mistakes, like I said. While I made it through everything, my mistakes could easily have led to major financial trouble.

Read on below to learn more about mistakes home buyers make and my first-time home buyer tips.

Related content on home buying mistakes:

Here were some of my home buying mistakes.

 

first-time home buyer mistakes

This was our first house.

I didn’t prepare.

I was only 20, so I didn’t really understand how things worked, even though I thought I did at the time.

I found an online mortgage lender, and back in 2009, that was kind of a new thing. The company ended up doing a bunch of odd things and made a bunch of paperwork mistakes. It almost seemed scammy because online mortgages were so new at the time.

While my realtor was great and a family friend, she recommended a mortgage loan officer to me, and I just used that person.

The loan officer was great and very friendly.

But, I didn’t compare interest rates at all, I didn’t try to raise my credit score before I started looking at homes, and more.

Instead, I should have been paying attention to my credit score and worked to increase it before I started looking at rates. Then, I should have applied with multiple mortgage lenders and found the best interest rate.

Basically, I didn’t prepare.

Had I spent time increasing my credit score and shopping around for better rates, I could have gotten a better interest rate and saved money on mortgage payments.

While a small percentage difference in interest may not sound like much, it makes a big difference in how much you pay each month and how much you pay over the course of your loan.

For example, here’s the difference in two 30-year mortgages on a $200,000 home (this is before annual taxes being added in to the monthly payment):

  • With an interest rate of 3.25% your monthly payment would be $870, and you would pay $313,349 over the course of your loan.
  • With an interest rate of 4% your monthly payment would be $955, and you would pay $343,739.

That’s a difference of $85 a month, and you will have paid $30,000 more once your mortgage is paid off.

Looking back, I would have done more research on the home buying process and the factors that impact interest rates.

One of the easiest things you can do to avoid this mistake is to start paying attention to your credit score. You can receive free credit reports and credit scores, and I recommend reading Everything You Need To Know About How To Build Credit to learn more.

I avoided adding up all of the costs because it was scary.

Okay, so I knew that having a house could/would be expensive, and luckily we were fine, but wow, are there a lot of costs!

I avoided adding them all up for a while because I knew they would be higher than I thought. Eventually I did, and I was right – adding everything all together was a doozy.

We didn’t start adding up these costs until we were farther along in the buying process, and this is one of the home buying mistakes many people make. 

There are lots of people who only think about their mortgage payment, but there are so many more costs associated with buying a home

Before we purchased a home, we should have gone through all of the typical costs of owning a house and compared it to our housing budget. Comparing your current budget to your new homeowner’s budget will tell you whether or not you can actually afford to buy a home.

Here are some of the homeownership costs you want to consider:

  • Gas/propane.  Many homes run on gas in order to have hot water, to use the stove, and so on.
  • Electricity. Generally, the bigger your home then the higher your electricity bill will be.
  • Sewer. On average, your sewer bill may cost around $30 a month from what I’ve seen.
  • Trash. This isn’t super expensive either, but it’s still a cost to include.
  • Water. Water bills can vary widely. I know many who live in areas where the average water bill is a few hundred each month.
  • Property taxes. Property taxes can vary widely from town to town. You may find yourself looking at two similar houses with similar price tags, but the property taxes may differ by thousands of dollars annually. That is a LOT of money. While it may seem small when compared to the actual home purchase price, remember that you have to pay property taxes annually and a difference of just $3,600 a year is $300 a month for life.
  • Homeowners insurance. Homeowners insurance can be cheap in some areas but crazy expensive in others. Don’t forget to look into the cost of earthquake, flood, and hurricane insurance as well as that can add up quickly depending on where you live – not thinking about these was one of the home buying mistakes I made.
  • Maintenance and repairs. Even if your home is brand new, you may have to pay for repairs, which is something that will come up eventually. No matter how old your home is, repair and maintenance costs will eventually come into play.
  • Homeowners association fees. This can also vary widely. You should always see if the house you are interested in is in an HOA because the fees can be high and there may also be rules you don’t like.
  • Home furnishings. Furnishing your home can be done cheaply, but I know some who buy huge homes but can’t afford to put anything in them, such as a table, a bed, and so on. Why own a $500,000 house if you don’t have any furniture?

 

I probably should have spent less on the actual house.

While the house we bought was less than the amount we were pre-approved for, I definitely think that we could have found a house for even less.

We bought at the top of our budget, and this is one home buying mistake that can really get you in trouble.

Thinking back on it, the amount that we were pre-approved for, as young 20 year olds, was pretty insane. I am very glad that we did not buy a house that was that expensive.

It’s not uncommon to be approved for much more than your budget realistically allows for. Just because the bank approves you for a $350,000 mortgage, for example, does not mean you can afford to buy a house at that price.

We bought at the top of our budget thinking that we would get better jobs eventually. While that worked out in our favor since we were each barely making above minimum wage, it was a decision that could have ended quite badly.

 

We were living paycheck to paycheck and didn’t have an emergency fund.

We were young and didn’t have high paying jobs when we bought our house. In fact, we were barely making more than minimum wage at our jobs.

While we never racked up credit card debt, I did accrue student loans and we were living paycheck to paycheck.

Had one major (or even minor) thing happened with our new house, the only option would have been taking on debt. This is not where you want to be if you have just taken out a big mortgage. 

The best way to avoid this first time home buyer mistake is to set some money aside for emergencies before you buy, and to buy a house that fits in your budget. You want to be able to continue saving while making your new monthly home payments.

 

Make sure your home insurance covers what you need.

While I never had to use my home insurance, there were a few things that it did not cover, and I should have at least thought about them beforehand.

One of the biggest coverage issues was flooding. Flooding is a common problem where we lived in Missouri, yet I didn’t realize until a few years after I had already lived in the house that flooding was not covered unless you signed up for an additional policy.

Now, we weren’t in a floodplain – your lender may require you to buy special flood insurance if you live in a floodplain – but basement flooding was still a fairly common issue where we lived. 

Another special insurance consideration are earthquakes. Many normal home insurance policies do not cover earthquakes.

You can avoid this home buying mistake by researching what is the best kind of insurance policy for where you live. Floods and earthquakes aren’t a problem everywhere, but in some places you may want to have that kind of coverage.

 

Have a larger down payment.

We were 20, and we didn’t have a lot of money saved up before we bought our house.

Therefore, we did not put down a 20% down payment. That might sound like a lot, but 20% is the recommended amount to put down if you want to avoid PMI (private mortgage insurance).

A lender charges PMI because putting less than 20% down makes the loan look like a riskier investment for them. PMI protects lenders from borrowers who default on their loans.

PMI is normally around 0.5% to 1% of the mortgage annually, and it’s added to your monthly payment. If you borrowed a $200,000 mortgage, you would likely pay between $1,000 to $2,000 a year until you paid down enough of your mortgage principal to remove PMI.

We put less than 5% down towards our house purchase, and this led to us having PMI.

I don’t remember exactly how much we paid each month for PMI, but looking back, I could have used that money to pay off my student loans faster, save more, and so on.

While having a larger down payment isn’t one of the home buying mistakes I could have easily changed back then, in general, just saving more money instead of frivolously spending it in the beginning would have been a good decision.

Related content: Can You Remove PMI From Your Mortgage?

 

So, what’s going on with the house now?

As many of you know, we sold our house over 5 years ago. We wanted to travel more, and selling our house made more sense than keeping it.

We actually sold it for quite a loss, as the market was further down than when we bought it.

I’m happy that we bought the house – it taught us a lot, gave us responsibility, and gave us a place to live! And, it taught us how to avoid home buying mistakes in the future.

One of the things I haven’t mentioned is what we paid each for our mortgage. Our monthly payments were just under $1,000. 

Where we lived in the midwest is known for being a low cost of living area. I can’t imagine how we would have bought a house in some other parts of the U.S.

But, the low cost of living meant that buying a house at 20 was more doable.

Is it normal to regret buying a house? Is it normal to have buyers remorse after buying a house?

I don’t know what the statistics are on home buyers remorse, but it does happen. Hopefully with the tips before buying a house above, you can avoid that as much as possible.

Also, being realistic when it comes to what to expect when buying a house can help greatly as well.

What home buying mistakes did you make when you purchased your home?

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Source: makingsenseofcents.com

15 States With the Most Extreme Weather

Tornadoes are an example of extreme weather
Todd Shoemake / Shutterstock.com

This story originally appeared on Filterbuy.

The year 2020 brought a series of historically severe weather-related disasters all over the United States.

In November, the 2020 Atlantic hurricane season set a new record for the number of tropical and subtropical storms in a single year. The 2020 wildfire season in the western United States burned millions of acres. In the Midwest, an August derecho brought torrential rain, hail, tornadoes, and sustained wind speeds over 100 miles per hour in Iowa and Illinois.

The severe weather events of 2020 are part of a larger trend — the frequency of extreme weather conditions in the U.S. is on the rise as global climate change accelerates. According to the CDC, the effects of climate change are likely to include more variable weather, heat waves, heavy precipitation events, flooding, droughts, more intense storms such as hurricanes, sea-level rise, and air pollution.

Since the 1970s, the frequency of extreme weather conditions in the U.S. has risen

Hurricane flooding
Stratos Brilakis / Shutterstock.com

The frequency of extreme weather conditions in the United States has risen steadily since the 1970s, as demonstrated by the U.S. Climate Extremes Index (CEI). The CEI was developed to quantify observed changes in climate within the contiguous United States. The index includes temperature, precipitation, drought severity, and hurricane/tropical storm intensity. Based on these measures, extreme weather conditions have trended upward for nearly half a century, and four of the five highest years for this measure occurred within the last decade.

Extreme weather is not just more common — it’s also bringing even greater financial impacts to the areas affected through property damage, business interruptions, and other economic losses. Through the first nine months of 2020, 16 weather and climate disasters produced losses exceeding $1 billion, according to NOAA’s National Centers for Environmental Information (NCEI). This year is the sixth consecutive year with 10 or more billion-dollar disasters, an unprecedented milestone.

As both the intensity and number of severe weather events increase, so do the total costs of these disasters for the U.S. The same data from NCEI shows a dramatic increase in five-year average costs associated with severe weather events over the past decade, from around $30 billion in 2010 to over $100 billion in 2020.

Not all states experience severe weather in quite the same way, and some are much more susceptible to highly variable weather conditions. To identify which states have the most extreme weather, researchers at Filterbuy created a composite score for each state. Using data from the National Centers for Environmental Information, researchers created an extreme weather score based on each state’s all-time maximum and minimum temperatures, maximum 24-hour precipitation, maximum 24-hour snowfall, and number of annual tornadoes per 10,000 square miles.

Here are the states with the most extreme weather.

15. Maryland

Baltimore, Maryland
Hethers / Shutterstock.com

Extreme weather score: 55.5

All-time maximum temperature: 109°F

All-time minimum temperature: -40°F

All-time greatest 24-hour precipitation: 14.8 inches

All-time maximum 24-hour snowfall: 31.0 inches

Annual tornadoes per 10,000 square miles: 9.9 per 10,000 square miles

14. Iowa

Des Moines, Iowa
f11photo / Shutterstock.com

Extreme weather score: 56.3

All-time maximum temperature: 118°F

All-time minimum temperature: -47°F

All-time greatest 24-hour precipitation: 13.2 inches

All-time maximum 24-hour snowfall: 24.0 inches

Annual tornadoes per 10,000 square miles: 9.1 per 10,000 square miles

13. Texas

Fort Worth Texas
Barbara Smyers / Shutterstock.com

Extreme weather score: 56.7

All-time maximum temperature: 120°F

All-time minimum temperature: -23°F

All-time greatest 24-hour precipitation: 42.0 inches

All-time maximum 24-hour snowfall: 26.0 inches

Annual tornadoes per 10,000 square miles: 5.9 per 10,000 square miles

12. Nebraska

Omaha Nebraska
Aspects and Angles / Shutterstock.com

Extreme weather score: 56.7

All-time maximum temperature: 118°F

All-time minimum temperature: -47°F

All-time greatest 24-hour precipitation: 13.2 inches

All-time maximum 24-hour snowfall: 27.0 inches

Annual tornadoes per 10,000 square miles: 7.4 per 10,000 square miles

11. Montana

Montana town
Nick Fox / Shutterstock.com

Extreme weather score: 58.0

All-time maximum temperature: 117°F

All-time minimum temperature: -70°F

All-time greatest 24-hour precipitation: 11.5 inches

All-time maximum 24-hour snowfall: 48.0 inches

Annual tornadoes per 10,000 square miles: 0.7 per 10,000 square miles

10. Missouri

St. Charles Missouri
Rob Neville Photos / Shutterstock.com

Extreme weather score: 58.8

All-time maximum temperature: 118°F

All-time minimum temperature: -40°F

All-time greatest 24-hour precipitation: 18.2 inches

All-time maximum 24-hour snowfall: 24.0 inches

Annual tornadoes per 10,000 square miles: 6.5 per 10,000 square miles

9. New Mexico

New Mexico
turtix / Shutterstock.com

Extreme weather score: 58.8

All-time maximum temperature: 122°F

All-time minimum temperature: -50°F

All-time greatest 24-hour precipitation: 11.3 inches

All-time maximum 24-hour snowfall: 41.0 inches

Annual tornadoes per 10,000 square miles: 0.9 per 10,000 square miles

8. Oklahoma

Oklahoma City skyline
Natalia Bratslavsky / Shutterstock.com

Extreme weather score: 59.2

All-time maximum temperature: 120°F

All-time minimum temperature: -31°F

All-time greatest 24-hour precipitation: 15.7 inches

All-time maximum 24-hour snowfall: 27.0 inches

Annual tornadoes per 10,000 square miles: 9.0 per 10,000 square miles

7. Washington

Tacoma, Washington
Druid007 / Shutterstock.com

Extreme weather score: 59.2

All-time maximum temperature: 118°F

All-time minimum temperature: -48°F

All-time greatest 24-hour precipitation: 14.3 inches

All-time maximum 24-hour snowfall: 65.0 inches

Annual tornadoes per 10,000 square miles: 0.4 per 10,000 square miles

6. Kansas

Wichita, Kansas
Sean Pavone / Shutterstock.com

Extreme weather score: 63.7

All-time maximum temperature: 121°F

All-time minimum temperature: -40°F

All-time greatest 24-hour precipitation: 12.6 inches

All-time maximum 24-hour snowfall: 30.0 inches

Annual tornadoes per 10,000 square miles: 11.7 per 10,000 square miles

5. South Dakota

Rapid City, South Dakota
Sopotnicki / Shutterstock.com

Extreme weather score: 64.5

All-time maximum temperature: 120°F

All-time minimum temperature: -58°F

All-time greatest 24-hour precipitation: 8.7 inches

All-time maximum 24-hour snowfall: 52.0 inches

Annual tornadoes per 10,000 square miles: 4.7 per 10,000 square miles

4. Colorado

Denver, Colorado
f11photo / Shutterstock.com

Extreme weather score: 67.0

All-time maximum temperature: 115°F

All-time minimum temperature: -61°F

All-time greatest 24-hour precipitation: 11.9 inches

All-time maximum 24-hour snowfall: 75.8 inches

Annual tornadoes per 10,000 square miles: 5.1 per 10,000 square miles

3. Illinois

Chicago, Illinois
f11photo / Shutterstock.com

Extreme weather score: 67.8

All-time maximum temperature: 117°F

All-time minimum temperature: -38°F

All-time greatest 24-hour precipitation: 16.9 inches

All-time maximum 24-hour snowfall: 36.0 inches

Annual tornadoes per 10,000 square miles: 9.7 per 10,000 square miles

2. Minnesota

Minneapolis, Minnesota
Pinkcandy / Shutterstock.com

Extreme weather score: 68.6

All-time maximum temperature: 115°F

All-time minimum temperature: -60°F

All-time greatest 24-hour precipitation: 15.1 inches

All-time maximum 24-hour snowfall: 36.0 inches

Annual tornadoes per 10,000 square miles: 5.7 per 10,000 square miles

1. California

San Francisco, California
IM_photo / Shutterstock.com

Extreme weather score: 73.1

All-time maximum temperature: 134°F

All-time minimum temperature: -45°F

All-time greatest 24-hour precipitation: 25.8 inches

All-time maximum 24-hour snowfall: 67.0 inches

Annual tornadoes per 10,000 square miles: 0.7 per 10,000 square miles

Methodology

A man studies financial data at his computer
NicoElNino / Shutterstock.com

To identify the states with the most extreme weather, researchers at Filterbuy created a composite score based on the following factors weighted equally:

  • All-time maximum temperature
  • All-time minimum temperature
  • All-time greatest 24-hour precipitation
  • All-time maximum 24-hour snowfall
  • Annual tornadoes per 10,000 square miles

All of the data used in this analysis is from the National Centers for Environmental Information State Climate Extremes Committee Records.

Disclosure: The information you read here is always objective. However, we sometimes receive compensation when you click links within our stories.

Source: moneytalksnews.com

Sportscaster Joe Buck Quickly Snags a Buyer for His Luxe St. Louis Home

The sportscaster Joe Buck made quick work of his home in St. Louis, MO. After just four days on the market, the $3,295,000 mansion has received multiple offers and is now in “pending sale” status.

Buck, 51, purchased the property in the Ladue area back in 2013, for $2.36 million. Eight years later, the pristine property has been impeccably updated to suit a family of sports fans.

The co-listing agent, Julie Buck Brooks, a relation of Buck’s, adds, ”The property is situated on 6 private acres in the heart of Ladue—which is not something you find every day. The fantastic outdoor room, with a stone fireplace and pool, provide ample entertaining space.”

The 10,269-square-foot residence features six bedrooms and 6.5 bathrooms on three levels. Close to the city’s exclusive Bogey Golf Club, the estate features an open living plan and an idyllic outdoor setup.

The co-listing agent, Megan Rowe, calls the property “the epitome of luxury.”

She adds, “This home is incredibly popular, due to the unique floor plan. It’s hard to find a luxury home with a ‘ranch’ feel, which provides an open floor plan and main-floor living.”

The high-ceilinged entry flows naturally into the living room and formal dining room. The sunny great room includes a fireplace and two sets of French doors leading outside.

A large eat-in kitchen is equipped with a center island, breakfast bar, and built-in banquette. The office on the main level—which currently showcases the award-winning sportscaster’s multiple Emmys—includes built-in bookshelves and a unique barrel ceiling.

The private master suite, a spacious escape, offers views of the grounds, a luxury bathroom, and two walk-in closets. Four en suite bedrooms are on the main level, and two upstairs, along with a family room.

On the lower level, an owner can easily host game-day parties in a lounge area with a wet bar and wine cellar, as well as a full bathroom. The two exercise spaces should satisfy any fitness-minded owner.

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Watch: Golf Legend Greg Norman’s FL Estate Is Truly Epic

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Outside, the perks include a patio with a stone fireplace, built-in grill, pool, and spa, all overlooking the grounds.

The family hasn’t moved far. Last year, Buck and his wife, Michelle Beisner, reportedly upgraded to a massive estate nearby for $4.5 million.

The son of the late sportscaster Jack Buck, Joe grew up in the St. Louis area. He announces for Fox Sports, providing play-by-play commentary for the NFL and MLB. He also serves as the play-by-play announcer for the World Series. Beisner is a feature reporter for ESPN.

Rowe and Buck Brooks, both with Dielmann Sotheby’s International Realty, hold the listing.

Source: realtor.com

420: Increase Your Real Estate Profits Using Dan Holt’s Team-Building RoadMap

What’s the essential first step to building a money-making real estate team? Hear Dan Holt share that all-important first step and everything else you need to know to create team that will increase your real estate profits year in and year out. You’ll also hear a ton of valuable nuggets from Dan as he touches on getting listing leads, a listing script to close the deal, setting up a system for buyer leads and much more. Are you ready to make more money in real estate? Let’s get started now!

Dan Holt has built the #1 real estate team in SW Missouri in just a short 5 years. He has followed the Keller Williams model while focusing his team on specialization. The Dan Holt Team has sold over 500 homes in the last 2 years and is consistently challenging the market.

Join us as Dan shares his mindset and a glance at his journey to becoming a Real Estate Rockstar by helping people attain their goals.

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