Looking for the best fun jobs that pay well? Many people dream of having a job they love that also pays well. I completely get it – you don’t want to hate working a job that you’ll be at 40 hours a week! I’m very grateful to have a job that I love. I don’t…
Looking for the best fun jobs that pay well?
Many people dream of having a job they love that also pays well. I completely get it – you don’t want to hate working a job that you’ll be at 40 hours a week!
I’m very grateful to have a job that I love. I don’t dread any day of the week, and I genuinely love what I do. Due to that, I hope everyone gets to feel the same about their job as well.
Thankfully, it’s easy to find a job that lets you do what you enjoy and still pays you a good paycheck. Whether you love working online or driving fast cars, there are many job options that let you have fun while also making good money.
Whether you want to make extra income or find a full-time job, there are many fun jobs that pay well that may interest you.
Fun Jobs That Pay Well
When you’re looking for a job, it’s great to find one that you find fun and that also pays well. Here are some top choices to start with:
Bloggers work from anywhere and write about topics such as family, recipes, personal finance, travel, and more. This is what I do, and I think it’s a ton of fun. Plus, it pays very well!
Art therapists use creativity to help others. They draw or paint as a way to support people’s emotional health. This job requires a master’s degree, but it combines art with helping people, which can be very rewarding.
A Ferrari driving instructor teaches others how to drive a luxury sports car. It’s not just exciting; it can also pay between $90,000 and $120,000 a year.
If you like spotting mistakes in content, then finding a proofreading job may be perfect for you. Proofreaders act like an extra set of eyes to read articles, papers, books, ads, and other written content.
Below are over 40 other fun jobs that pay well that I recommend learning more about.
1. Blogger
If you want to find a fun job that pays well, my favorite way is to start a blog. That’s exactly what I do for a living!
A blog is content written on a website. It usually includes articles like what you’re reading here.
You can blog about something you’re passionate about or something you know a lot about. Or even a topic you want to learn more about (people love following others’ firsthand journeys!).
I began Making Sense of Cents in 2011, and since then, my blog has earned me over $5,000,000 over the years.
I started my blog on a whim to share my own money journey. At first, I didn’t even know people could earn money from blogs or how to make a successful one. And now, it’s my full-time job!
There are many ways to make money blogging such as:
Advertising revenue (banner ads that you see in blog posts)
Sponsored blog posts (when a blogger partners with a company to promote a specific item or company)
Affiliate marketing (when a blogger receives income for referring readers to a product)
Selling digital products or services (such as courses, clothing, books, and more)
You can learn how to start a blog with my free How To Start a Blog Course (sign up by clicking here).
10
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.
2. Printables designer
Making and selling printables can be a fun way to earn money. When you create printables on Etsy, you only need to make one digital file for each product. After that, you can sell it many times to make more money.
Printables are things you can find online and print at home.
These can be things like a planner, coloring pages, wall art prints, greeting cards, gift tags, and so much more.
I buy printables frequently, and so do others all the time. Recently, I bought a printable for my daughter and it was a useful tool to help teach her the alphabet. I love that I can easily search what I’m looking for and get exactly what I want – plus I can print it right at home quickly!
Recommended reading: How I Make Money Selling Printables On Etsy
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. Voice actor
A voice-over actor is someone you hear but don’t usually see in things like videos on YouTube, documentaries, radio ads, TV ads, corporate talks, online courses, audiobooks, video games, movies, and cartoons.
Voice actors don’t necessarily need experience for this job (although it can be helpful later on). What’s important is having a voice that matches what the company is searching for.
Recommended reading: How To Become A Voice Over Actor
4. Photographer
As a photographer, you get a special chance to capture moments and tell stories with your camera. Photography has many different areas where you can focus, and they can be both satisfying and financially rewarding.
Here are some examples:
Photojournalist – You document events for media outlets, such as National Geographic.
Wedding Photographer – Your role would be capturing wedding moments in couples’ lives.
Stock photo photographer – Photographers can sell their pictures on stock image sites, which are really popular. These sites let customers purchase pictures for things like websites, TV shows, books, and social media.
Recommended reading: 18 Ways You Can Get Paid To Take Pictures
5. Buy and sell flipper
Being a buy-and-sell flipper means you’re into flipping items for profit.
This includes getting undervalued things from flea markets, garage sales, or online places and then selling them for more money.
This could be things like clothing, electronics, furniture, cars, and so much more. Basically, anything and everything!
Your success depends on how good you are at finding good deals, knowing the values in the market, and selling things again for a profit.
10
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.
6. Proofreader
As a proofreader, your careful attention to detail can become a rewarding career. Proofreading means going through texts to fix grammar, spelling, and punctuation mistakes before they get published. This job is important to make sure written content is clear and doesn’t have errors.
Many people, like authors, website owners, and students often hire proofreaders to make their work better. There’s a big need for proofreaders, and you can find jobs on various platforms.
Even the best writers can make mistakes in grammar, punctuation, and spelling. That’s why getting a proofreader can be really helpful for almost everyone.
In fact, although I have written over 2,000 articles, I have a proofreader who will have proofread this very blog post.
Recommended reading: 20 Best Online Proofreading Jobs For Beginners (Earn $40,000+ A Year)
10
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.
7. Freelance writer
Freelance writers create content for clients, like blog posts and advertising. Freelance writing usually involves working independently. Clients give you a topic, you write about it, and then you might receive feedback, like suggestions to improve or add paragraphs.
You can write about any topic that you want to – such as travel, money, home, and so on.
How much you make as a freelance writer depends on your experience and the topics you write about. When you start, you might earn around $50 to $75 for a 500-word article. As you get better, you can charge more. For a 1,000-word article, you could make between $100 and $150. If you do well over time, you can ask for even higher rates.
I was a freelance writer for many years before transitioning to full-time writing here on Making Sense of Cents. It’s a great career where you can mostly work from home on your own.
Recommended reading: 14 Places To Find Freelance Writing Jobs
8. Graphic designer
A graphic designer is someone who makes designs for people and businesses. As a digital designer, you might create images, social media graphics, printables, T-shirt designs, business cards, stickers, logos, and more.
As a graphic designer, your main job is to communicate through visuals. You use a mix of typography, images, color, and layout to convey messages and brand identities. This field gives you the freedom to express your creativity in different ways, whether it’s through digital designs or print materials.
Recommended reading: How To Make Money As A Digital Designer
9. Social media manager
Being a social media manager is an exciting career choice and your main job is to take care of how a company or person appears online on different platforms. Your tasks include interacting with followers, selecting content, and planning social media posts.
Here are the key areas you typically need to focus on:
Content creation – Create fresh, original posts tailored to each platform.
Engagement – Interact with the audience by responding to comments and direct messages.
Strategy planning – Use data analytics to drive social media strategies, aiming for increased engagement and reach.
The salary can vary, and you can choose to do this job either part-time or full-time.
10. Social media influencer
Related to the above, you can make money with your own social media accounts as well.
Have you ever followed someone on Instagram or TikTok and thought to yourself that it would be fun if you could do something similar?
Social media influencers use different online platforms to create, share, and connect with content that their audience likes. Your success depends on growing a big group of followers and establishing yourself as a trusted voice in your specific area.
As an influencer, you’ll create your brand by sharing your interests, pictures, and opinions on social media platforms such as Instagram, TikTok, Facebook, and others.
You can earn money through sponsored posts (when brands pay you to promote their products or services in your Instagram posts), affiliate marketing (earning commissions from sales through your referral links), and by creating digital products like ebooks or online courses.
I’ve been a social media influencer for years, monetizing my Instagram and Facebook accounts. It’s a great experience as I get to collaborate with companies I love and promote products I already use.
11. Veterinarian
If you have a passion for animals, then becoming a veterinarian may be a great fit for you.
Veterinarians have a skilled and fulfilling role dedicated to animal health and welfare. The main responsibility is to provide medical care to animals, diagnose health problems, and perform surgeries.
Vets work in private clinics, animal hospitals, research facilities, zoos, and more.
The veterinarian career path is rewarding as it lets you blend a love for animals with the chance to make a positive impact on their lives.
To become a veterinarian, you must complete a Doctor of Veterinary Medicine (DVM) program and obtain a state license to practice. This usually involves:
A bachelor’s degree
A four-year veterinary program
The national average salary for veterinarians is around $100,000 per year.
12. Marine biologist
One job that I dreamed of as a kid was to become a marine biologist. It always sounded like so much fun to work with water and sea animals.
Marine biologists study marine organisms and how they behave and interact with the environment. Your work might take you from coastal wetlands to the deepest parts of the ocean.
Here are some of the things they do:
Conduct research on marine wildlife and ecosystems
Monitor the health of marine habitats
Develop conservation plans
Educate the public and policymakers
Marine biologists are important for understanding marine life and contributing to ocean conservation efforts.
13. Mystery shopper
Retailers, restaurants, and financial institutions need mystery shoppers for detailed feedback to improve their customer service and products.
This might not be a full-time job, but it can provide you with some extra money each month.
I remember when I first learned about mystery shoppers. I was working at a clothing store, and we would have mystery shoppers come in to see how we were doing. We never knew who the mystery shopper was, but we would get to read their report afterward and see what they thought of us.
After learning about mystery shopping, I found a website where I could become one as well. It sounded like fun to get paid to shop.
I would make about $150 to $200 per month through mystery shopping, and I also got free items and services, like $100 to spend at restaurants (where I had to provide feedback while I was there), makeup, and more.
Recommended reading: How To Become A Mystery Shopper
14. Architect
Architects have a special mix of creativity and technical skills, allowing them to design buildings that are not just attractive but also functional and safe.
Their role includes making detailed plans, and considering factors like sustainability, budget, and client needs.
To become an architect, you typically need a bachelor’s or master’s degree in architecture and you’ll need state licensure, which is obtained by passing the Architect Registration Examination (ARE).
15. Stunt person
A stunt person is a cool job where you use your physical skills to create exciting action scenes for movies, TV, and live shows. It’s a big part of making the action look real and thrilling.
To do this job, you might need lots of training in things like martial arts, gymnastics, or extreme sports. You also have to be good at handling pressure and follow safety rules closely.
16. Professional video gamer
Yes, if you like video games, you may actually be able to make money as a professional video gamer.
While the amount of money you can make will definitely vary, top gamers have the potential to earn from tournament prizes, sponsorships, and streaming content for fans:
Tournaments: Prize pools can be large, reaching into the millions for top-ranking competitions.
Streaming: Platforms like Twitch and YouTube pay through ads, subscriptions, and donations.
Sponsorships: Companies may endorse you and pay you with sponsorships or free items.
You could maybe even find a job working for a video game designer, testing out video games so that companies can improve their video game design.
Recommended reading: How Much Do Twitch Streamers Make?
17. Chocolatier
Many people at some point in their lives want to become the person who makes chocolate and candy – sounds amazing after all, right?
A chocolatier is someone who uses cooking and art skills to make chocolates. It’s a job that needs creativity, precision, and a good sense of taste.
You might work for yourself, making chocolates, or you may even work for a large chocolate company. I know people who do both!
18. Personal trainer
If you want to find a job that you’ll love, becoming a personal trainer may be it.
Personal trainers play an active role by combining fitness with motivational skills to help people reach their health and fitness goals. This job includes:
Assessing clients’ fitness levels and health conditions
Developing personalized workout and nutrition plans
Demonstrating exercises and routines to clients
Tracking clients’ progress and adjusting plans as needed
How much you earn as a personal trainer can change a lot based on where you work, your qualifications, and the clients you get. Personal trainers usually make an average of $40,000 to $70,000 per year.
19. Supercar driving instructor
Supercar driving instructors have an exciting job where they help people learn how to drive fast cars on racetracks.
The role includes teaching safety and giving an exciting experience as well as explaining how to handle the vehicles, follow track rules, and use advanced driving techniques.
You can usually earn a high income doing this, plus you get to drive some of the world’s most exotic supercars.
20. Toy designer
Being a toy designer is probably most children’s dream career. After all, who hasn’t loved toys at one point in their life?
The toy industry is always looking for creative designers to make new toys that will grab kids’ attention and imagination.
Toy designers have a cool job where they mix creativity with making things work well. The main aim is to create toys that are fun and help kids learn and grow. This special job combines artistic skills with knowing about how children think and learn.
21. Restaurant critic
Restaurant critics evaluate dining establishments and share their experiences through written reviews. Their main responsibility is to provide an unbiased review of the food quality, service, ambiance, and overall dining experience.
To gain experience and get started, begin by developing your taste buds and learning about different cuisines. This can involve:
Going to cooking workshops
Exploring different food places when you travel
Creating your own blog or starting an Instagram dedicated to food
22. Brewmaster
If you love craft beers and enjoy understanding how fermentation works, becoming a brewmaster could be a fun and rewarding career.
Brewmasters manage the brewing process, such as creating recipes, choosing ingredients, and making sure the quality is top-notch during production.
To start, you might need formal education, such as a degree in brewing science or a related field. However, some brewmasters climb the ladder from roles like brewing assistants, gaining experience through on-the-job learning.
23. Fashion designer
Fashion designers make clothing, accessories, and shoes, and they draw designs, pick fabrics and patterns, and guide how the products designed should be made.
Fashion designing can be a fulfilling career if you love fashion and enjoy creating. It gives you a chance to express yourself personally and can even lead to getting noticed in the industry.
24. Food stylist
Food stylists combine culinary art with aesthetics, making sure that dishes not only taste good but also look delicious and perfect for photographs.
Their duties include choosing ingredients thoughtfully, preparing the food, and presenting it in a way that’s visually attractive. This is important for different media like advertising, packaging, cookbooks, and film.
25. Event planner
Event planners organize events, from big corporate conferences to small weddings. Their main job is to make sure every part of the event matches the client’s vision, fits the budget, and meets the goals.
According to Glassdoor, the average pay for an event planner is around $50,000 per year. Your salary can change based on things like your experience, where you work, and the size and type of events you handle.
26. Animator
If you’re looking for fun jobs that pay well, then becoming an animator may be it!
Animators make visual creations, and their main focus is on designing characters, environments, and entire worlds in 2D or 3D formats.
Here’s what you may work on:
Character design: Create and develop characters for various media.
Story development: Collaborate on storyboards to plan out visual narratives.
Animation: Work with digital tools to animate drawings and models.
The animation industry values creativity and technical skills and also pays competitive salaries with the opportunity to contribute to exciting storytelling processes. Whether you’re involved in creating animated TV shows, movies, or video games, being an animator can be both enjoyable and financially rewarding.
27. Real estate agent
Real estate agents are professionals who help people buy and sell properties, such as houses and commercial buildings.
I know a few real estate agents, and they all seem to love their jobs. They get to see beautiful new homes and properties and help their clients find their dream property.
Plus, they usually set their own schedule, which can help you create a better work-life balance.
28. Private investigator
Private investigators conduct investigations on various matters, including legal, financial, and personal issues.
This may include doing things like surveilling someone to get information, interviewing people to get details, researching public and legal documents, as well as gathering evidence for cases.
Here are some steps to becoming a private investigator:
Have a high school diploma or equivalent. Perhaps even get a degree or certification in criminal justice or a related field.
Gain experience in a related field such as law enforcement or the military.
Acquire a private investigator license, as required by your state.
29. Romance novelist
Starting a career as a romance novelist can bring both fulfillment and income. If you love storytelling and especially romance, this can be a fun one to think about.
Recommended reading: How to Make Money Self-Publishing Short Romance Novels
30. Interior designer
Interior designers mix creativity with practicality to decorate the insides of properties. Their job is to design and put in place the aesthetic and functional aspects of residential or commercial spaces.
Your job would be to create an environment that looks good and is comfortable for your clients.
31. Airline pilot
Airline pilots have a career that is both exciting and has the potential to make a lot of money. Their main job is to pilot commercial aircraft, flying from one place to another, and making sure everyone on board, including passengers and crew, stays safe.
Some of their daily duties include:
Conduct pre-flight inspections
Navigate the aircraft
Communicate with air traffic control
Monitor weather conditions and aircraft systems
Lead the crew and manage any in-flight issues
32. Drone pilot
Drones have gained popularity lately, not just for recreational use but also for jobs requiring aerial photos and videos. This creates a growing opportunity for individuals to start small businesses and make money with their drones.
Your job as a drone pilot may be to:
Take high-quality images and videos from unique perspectives, such as for real estate, construction, or events.
Perform inspections, surveys, and mapping for various industries like mining or agriculture.
Analyze data and images to give insights to clients.
Recommended reading: How To Make Money With A Drone
33. Sommelier
Sommeliers have a lot of knowledge of wine and can share it in a fun way.
This job is usually found in upscale restaurants, and this role involves suggesting wines that go well with customers’ meals, conducting wine tastings, managing wine service, and taking care of the wine cellar.
34. Chef
Chefs, of course, play an extremely important role in a restaurant kitchen, crafting menus and overlooking meal execution. Their primary responsibilities include tasks like:
Menu Design: They create food menus for a restaurant.
Food Preparation: They oversee and sometimes partake in the detailed preparation of ingredients.
Cooking: They cook the restaurant meals and oversee other cooks in the kitchen.
35. Cruise director
Cruise directors make sure passengers have an unforgettable experience aboard a cruise ship. This job requires a fun personality and excellent skills in managing both entertainment programs and a team of staff members.
Their responsibilities include planning and supervising all onboard entertainment, such as shows, events, and activities.
We went on an around the world cruise recently and had an amazing cruise director. It looked like such a fun job, and they got to travel everywhere that we did (of course!).
Recommended reading: How To Get Paid To Travel The World (18 Realistic Ideas!)
36. Astronomer
Astronomy is a field that combines the excitement of exploring the cosmos with the satisfaction of solving complex problems. As an astronomer, you enter a world dedicated to understanding celestial phenomena and the principles of the universe.
Usually, a Ph.D. in astronomy or a closely related field is needed to conduct independent research or work at a university. However, with a bachelor’s or master’s degree, you might find opportunities at planetariums, observatories, or assisting with research.
37. Netflix tagger
If you’re seeking a fun yet rewarding job, becoming a Netflix tagger could be an interesting option. In this job, you watch Netflix content and assign specific labels to shows and movies, influencing the platform’s recommendation algorithm.
To get started, you will need to apply through the Netflix jobs portal, where available positions are listed. Experience in film and media studies, while not mandatory, can give you an advantage.
Recommended reading: 7 Best Ways To Get Paid To Watch Netflix
37. Geologist
Geologists explore and study the earth’s composition, processes, and history.
Their job can lead to finding valuable resources like minerals, oil, and gas, and they also have an important part in environmental conservation and predicting natural disasters.
38. Dog walker
If you love pets, then this is the fun paying job for you!
Dog walkers do exactly that – walk dogs while their owners are busy, such as at work or on vacation. If you like dogs, then this can be a fun way to spend time with animals and get paid for it.
To become a sought-after dog walker, you should be reliable, good with animals, and you should have excellent customer service skills to build connections with clients. Dog walking allows you to enjoy the fresh air, bond with different dogs, and make money doing something you love.
Recommended reading: 7 Best Dog Walking Apps To Make Extra Money
39. Ethical hacker
Ethical hackers think and operate like malicious hackers but with a specific goal: identifying and fixing security vulnerabilities before they can be exploited.
They act as safeguards, testing and securing systems to prevent potential breaches for companies.
This job involves a lot of problem-solving skills, as you are looking for possible security problems.
40. Travel agent
If you like planning trips, then becoming a travel agent may be a great way to have a fun high-paying job.
Travel agents craft and sell travel experiences. They help advise clients on different travel destinations and arrange transportation, hotels, tours, and more. It’s a job that not only pays well but allows you to help others travel.
You may help people plan their honeymoon, a trip to Disney World, an around-the-world cruise, and so much more. There are travel planners for every kind of trip that you can think of.
Your knowledge and skill in handling the challenges of travel planning make you a very important help to travelers who want their experiences to be stress free.
The average annual salary can vary by a lot, and this can be either a part-time or full-time job. There is a lot of job growth too, as more and more people are going on vacations!
41. Personal shopper
Personal shoppers give a shopping service for clients who either lack the time or the style to select their own stuff. As a personal shopper, your job may range from picking clothing to finding the perfect gift.
You may work at a high-end retail store, or you may be a freelance personal shopper – there are many jobs in this field!
42. Park ranger
Have you ever been to a beautiful place like Yosemite National Park and wondered what it would be like to work there?
Park rangers work in places like beautiful national parks and get to enjoy the scenery every single day. Their responsibilities include protecting and managing parks, wildlife, and historical sites and making sure that both the natural resources and the visitors exploring them are safe.
To become a park ranger, you usually need a combination of education in fields related to conservation, environmental science, or wildlife management, and relevant work experience.
Recommended reading: 15 Outdoor Jobs For People Who Love Being Outside
43. Tour guide
Being a tour guide gives you a chance to share your love for travel or history with others, all while making a living. You’ll get to be in different places like historical sites, museums, or outdoor adventures.
This can be a low-stress job with a big fun factor – as you get to explore places that you probably already love and are an expert at.
Recommended reading: How to Make Money as an Airbnb Experience Host
44. Yacht crew
Working on a yacht can be a thrilling job that mixes travel, adventure, and the chance to meet new people, along with the possibility of earning good money.
If you work on a yacht, your job could be as a captain, mechanic, server, cleaner, chef, and more. If you’re on a smaller boat, you might even handle all these tasks.
Jobs on a yacht or big sailing boat are usually hard work, but the perk is that you get to travel with most expenses covered, while also earning a high income.
45. Flight attendant
Being a flight attendant is important for making sure passengers are comfortable and safe. You’re like the friendly face of the airline during flights, taking care of different needs and keeping service standards high.
Plus, you get to enjoy the unique perk of discounted or free travel, which is a big perk of becoming a flight attendant.
Flight attendants can earn a good income, and the benefits are excellent. They usually make between $50,000 to over $100,000 a year. The training to become a flight attendant usually takes around 1 to 2 months.
Recommended reading: How To Become A Flight Attendant And Make $61,640 Each Year
46. Art therapist
Art therapists combine the creative process with psychological healing to provide a unique kind of mental health therapy. They conduct one-on-one or group therapy sessions, and being an art therapist can be very fulfilling as you help people discover their voice and heal through art.
Art therapists work at schools, psychiatric hospitals, veterans associations, and more. Usually, you need a master’s degree to enter this field.
They use art therapy to assist people in expressing their emotions, dealing with complex feelings, and enhancing self-awareness. Their job isn’t just about being artistic; it’s deeply connected to therapeutic practices that help a variety of clients.
Another job similar to this is becoming a music therapist.
Frequently Asked Questions
Below are answers to common questions about how to find fun jobs that pay well.
What is the most high-paying fun job?
The most high-paying fun job can vary based on your skills and interests. Some high-paying fun jobs include being a blogger, pilot, stunt person, and romance book author.
What are random jobs that pay well?
There are many unique jobs, such as a private island caretaker, yacht captain, or a voice-over artist.
Which is the most exciting and highest paying job in this world?
This will depend on who you ask! Maybe it’s being a pilot, a stunt person, an actor, or something else.
What are some fun jobs that pay six figures?
Some fun jobs that pay over $100,000 may include becoming a blogger, selling printables, photographer, architect, and more.
What are some low-stress fun jobs that pay well?
Jobs like a yoga instructor or a massage therapist can be low stress and fun, and they provide a good income, especially when experienced or working in more affluent areas.
What are some fun jobs that pay well without a degree?
You can pursue jobs such as a social media influencer, a real estate agent, or a personal trainer, which can pay well and be rewarding without requiring a traditional four-year degree.
Best Fun Jobs That Pay Well – Summary
I hope you enjoyed this article on the best fun jobs that pay well.
There are many fun careers that pay a part-time or full-time income.
Careers like voice acting, managing social media, and ethical hacking not only pay well but also let you have a good balance between work and life. The key is to know your talents and find the right fit in these exciting jobs.
I have been working a fun job for many years now, and I really really love it. It makes each day enjoyable and I actually look forward to work. I hope that you get to one day say the same as well.
What do you think are the best fun jobs that pay well?
Buying life insurance is a big decision — one that is often a long-term commitment — so you are probably wondering how much it will cost. You want to know your family will be financially stable when you are no longer around, but you may be concerned that the premiums will take a big bite out of your budget. The truth is, there is no one single number for a life insurance premium.
The price varies based on an array of factors, including the kind of policy you buy, the amount of coverage you want, your age, your health, and other attributes, as well as which provider you select. Even if you have a twin, you and your sibling may well be quoted different prices. Life insurance policies are that personalized.
But that doesn’t mean you can’t get a good ballpark! Let us help you get a handle on the range of possible prices.
Average Cost of Life Insurance
To get started, let’s do a quick overview before we get to the dollars and cents. Though rates will vary, some of the key criteria used in calculations include:
• Age. Generally, the younger you are when you sign up for life insurance, the cheaper it will be. The older you are, the shorter your life expectancy is, meaning your insurer is more likely to have to pay your beneficiaries upon your death (sorry! We don’t like saying it either, but that’s the bottom line of life insurance).
• Gender. Women tend to have longer life expectancies, so females almost always have lower premiums than males even if their age and health status is the same. The latest CDC figures put the average life expectancy for men at 73.2 years and women at 79.1 years.
• Smoking status. While the rate of cigarette smoking among U.S. adults is declining, there’s no denying it’s a health risk. In fact, it’s the leading cause of preventable death in America, according to the CDC. Approximately 480,000 deaths (that’s one out of every five deaths) is attributable to the habit.
• General health history. Overall, the healthier a person is deemed to be, the cheaper the premiums tend to be. This means factors like your height and weight, blood pressure, cholesterol levels, and pre-existing conditions will be considered.
How much you’ll pay also depends on whether you get term or permanent life insurance.
As the name implies, term life insurance covers you for a discrete period of time, and then you are no longer insured. This kind of policy can work well for those who want to know their loved ones are financially secure as a mortgage is paid off or a child pays college tuition.
On the other hand, permanent life insurance guarantees that whenever you may die, your designated beneficiaries will receive a lump-sum payment. Permanent life insurance policies also act as a savings vehicle; more on that in a moment.
Okay, here are some numbers to ponder. These rates are based on the healthiest category of applicants taking out a $500,000 policy. In the case of the term policies, the length is 20 years.
Age
Female, Term Insurance per year
Male, Term Insurance per year
Female, Whole Life Insurance per year
Male, Whole Life Insurance per year
30s
$183
$220
$4,015
$4,652
40s
$281
$220
$5,937
$7,028
50s
$641
$817
$9,443
$11,163
60s
$1,656
$2,361
$15,943
$19,150
70s
$8,204
$9,297
$28,093
$33,325
A word about those life-insurance premiums: They are typically paid monthly, though you may be able to save if you pay annually, up front. It’s important to keep up with your life insurance payments so your policy doesn’t lapse and you and your loved ones receive that halo of protection you are paying for. 💡 Quick Tip: With life insurance, one size does not fit all. Policies can and should be tailored to fit your specific needs.
Average Cost of Term Life Insurance by Age
Term life insurance tends to be the more affordable option. Permanent life insurance can cost considerably more – from five to 15 times as much. However, the costs will vary based on many factors. One obvious one is that a longer policy will have higher premiums than one with a shorter term. Why? Because it’s more likely that the insurance company will need to pay out on a longer one.
When Business Insider gathered rates, they found that a 30-year old could take out a 30-year term policy for $33.65 per month. The average rates climbed by age — from $33.65 per month at age 30 to $56.21 at age 40, $125.12 at age 50, and $252.26 at age 60.
As you see, you may get much better rates, the younger you sign up.
Average Cost of Whole Life Insurance by Age
Now, let’s take a look at whole life insurance, which will pay a death benefit even if you live to be over 100. One kind of permanent life insurance is whole life. It also accrues “cash value,” which can be a source of funding for future needs. Providers may offer unguaranteed dividends, depending on the particular policy you purchase.
Let’s look at how much this kind of life-insurance policy can cost. Recent annual costs for a $500,000 policy averaged $352 for a 30-year-old female and $394 for a male, and $506 for a 40-year-old female and $564 for a male.
Recommended: 8 Popular Types of Life Insurance for Any Age
Average Cost of Life Insurance Without a Medical Exam
Usually, part of the application process for life insurance involves a medical exam. A medical history is taken, and then there’s a brief visit to a healthcare practitioner (or they may come to you). Your height, weight, pulse, and blood pressure are typically recorded; blood and urine samples may be collected, too. The results allow the life insurance company to gauge your health and contribute to the calculation of the premium you will pay.
Some people, however, don’t want to invest the time in this step; signing up can take 4-8 weeks. Or perhaps they just don’t like medical appointments and blood draws. Others may worry about what will turn up in their testing and worry that they won’t qualify for coverage. Regardless of the reason, there are insurance policies that let you sidestep the medical exam. These are referred to as no-exam policies.
Typically, these types of policies offer lower coverage limits than those that do include medical testing. For instance, they might offer from $5,000 to upwards of $3 million in coverage. To acquaint you with how much this could cost, let’s review some prices, per Policygenius
• For a 30-year-old woman, it would be $22.99 per month for $500,000 in coverage.
• For a 30-year-old man, the cost would be $29.33 per month for $500,000 in coverage.
If you are interested in this type of policy, it is also sometimes called simplified-issue insurance or guaranteed-issue insurance.
Average Cost of Term Life Insurance by Health
Here’s another angle on life insurance: looking at how much it will cost you based on your health. As we mentioned above, the insurance industry uses different terms to describe how healthy a policyholder is. Here are some common terms you may hear as you’re researching policies:
• Super preferred (or preferred plus): This is the healthiest category to be in; statistically, you’re more likely to live a long life, and you will get the best rates. Typically, to qualify, one needs no family history of death from cancer or heart disease before age 60 or 65; no tobacco use in recent years, nor a history of substance abuse; healthy blood pressure and cholesterol levels; no personal history of cancer or heart disease; a clean driving record; and your height and weight must fall in a certain range.
• Preferred: This category is typically a bit more liberal in terms of the height/weight limits, cholesterol numbers (perhaps a total limit of 240), and when one might have last used tobacco. This category also encompasses those who have had a close relative die of cancer or heart disease before the age of 60. Rates will be higher than those in the super preferred category.
• Standard: This is the next category and tends to include those with a history of substance abuse as well as those who use tobacco.
So, now you are probably curious how rates stack up based on these categories. Let’s take a look at costs for $500,000 coverage of 20-year term life insurance:
• For a woman who is age 30, the annual premium for standard health could be $417, with preferred costing $235, and super preferred at $174. At age 40, the annual costs would be approximately $641, $350, and $277 in the same categories.
• For a man who is age 30, the annual premium for standard health could be $506 for standard, $292 for preferred, and $219 for super preferred. At age 40, the premiums would be $778, $421, and $327 in those categories.
Average Cost of Life Insurance by Term Length
As you think about buying life insurance, you may be pondering different versions of term insurance. Perhaps you just took out a 30-year mortgage and want to be sure those payments will be covered if a worst-case scenario happened and you weren’t around to write checks. Or maybe you are about to marry someone with a 10-year-old, and you want to be sure the child’s college expenses will be covered, no matter what may happen.
Term insurance can be the perfect vehicle in situations like these. Term life insurance has a straightforward goal: to provide the policyholder with a certain amount of coverage during a designated time period — perhaps 15, 20, or 30 years. If a person dies within the time frame, then beneficiaries typically receive the payout of the policy. If a person does not die during the time frame, no one receives the death benefit.
As you might expect, the longer the term, the higher the premium. You’re buying into more coverage, so that will cost more. Let’s see how some numbers stack up.
For a 30-year-old man with a preferred health rating, here’s how much a monthly premium would be for $500,000 in coverage:
• 10 years of coverage: $21.13
• 20 years of coverage: $29.32
• 30 years of coverage: $42.45
As you see, extending your coverage term from 10 to 20 years doesn’t mean you will pay twice as much. That’s good news in the affordability department! 💡 Quick Tip: Term life insurance coverage can range from $100K to $8 million. As your life changes, you can increase or decrease your coverage.
What Factors Determine the Cost of Life Insurance?
You may wonder why rates vary as you price and compare life insurance policies. Let us break down for you some of the most important factors that influence to cost of a policies:
• The kind of insurance: As we have mentioned above, there are two main kinds of life insurance, term (coverage for a specific period of time) and permanent (life-long coverage). Permanent is pricier.
• The amount of coverage: If you buy $250,000 of coverage, it will of course cost less than a policy that pays a death benefit of, say, $2 million.
• Length of a term policy: If you are shopping for a term policy, expect to pay more for a longer period of coverage. If you buy a 20-year policy, for instance, it will be higher in price than a 10-year policy.
• Age and gender: Younger people in general get lower quotes than older people because it is less likely that the insurer will need to pay out in the near future. Women tend to live longer than men, so females can get a lower premium when all other factors are equal.
• Health status: At a minimum, the insurance application will ask health-related questions. Many life insurance companies also require a medical exam, along with the ability to review health records before a policy can be issued. Certain health conditions, such as cancer and heart disease, can increase premiums and may also prevent coverage from being issued. Weight, blood pressure, and cholesterol levels can also play a role. Plus, even if the applicant is healthy, a family history of health issues can impact premium pricing or policy eligibility.
• Lifestyle: Do you have a high-risk job (say, a pilot or police officer) or hobby (skydiving would be a classic example)? Or do you smoke, which carries health implications? Do you have a history of substance abuse or a recent DUI on your record? These factors can raise your insurance rates.
It’s notable that life insurance companies can have different underwriting policies — so questions asked during the application process may vary from provider to provider.
One key point to keep in mind: Obtaining a life insurance policy when younger and healthier could impact the cost of a policy quote in a very good way. With some life insurance companies, the consumer can lock in a set monthly premium upon signing up — in which case the life insurance premiums would remain stable throughout the entire term of policy.
Recommended: Is Employer Life Insurance Enough?
What Factors Don’t Impact Your Life Insurance Rates?
So, that’s quite a list of things that do impact the cost of life insurance. Now, let’s look at what doesn’t influence the price tag:
• Ethnicity, race, and sexual orientation. Insurers can’t discriminate based on these factors.
• Credit score. Yes, your insurer may look at how you rate over the last seven years, but whether you are a 500 or a 700 shouldn’t make a difference. That said, if you have a bankruptcy on your record, that could influence your perceived risk and may affect premiums.
• Marital status. This doesn’t raise or lower your rates (though, yes, it does matter to car insurance quotes).
• How many beneficiaries you have. It won’t impact your rate if you name one person or several.
When Is the Best Time to Buy Life Insurance?
It’s typically a good idea to buy life insurance as soon as you feel you need it. As we’ve discussed, rates are lowest when you are younger, before health issues typically crop up.
In terms of timing it right, many people buy a policy when they know they will have dependents who’ll rely on their earnings. For instance, getting engaged to be married is a good time to consider purchasing a life insurance policy. You would want to know your spouse is taken care of financially if anything were to happen to you.
Similarly, if you are expecting a child, that is another classic trigger moment for buying a life insurance policy. Knowing that you have protection for your kids, from birth through college, can let you rest a lot easier.
There’s another angle to consider: the half-birthday aspect of insurance premiums. If you apply for life insurance six months or more past a birthday, your insurer will round up to the next birthday. This can wind up locking you into a higher rate for the entirety of your policy. So look at the calendar before you commit to a purchase, and check in with your insurer if there’s a way to back-date your policy if you are past your half-birthday.
How to Choose the Best Policy for You
Armed with all of this intel, you’re ready to go shopping. Here are some considerations as you get acquainted with your options, whether you work with an agent or use the easy, one-click options online.
• You’ll need to decide whether term life insurance or permanent coverage best suits your needs and budget.
• You’ll want to determine the amount of coverage to buy. Some people say to multiply your annual salary by 10; others use the DIME method. There’s also the DIME method to calculate the amount of debt, lost income, mortgage payments, and educational expenses that would need to be covered if you weren’t here to pay them. (This could leave you overinsured, so you could subtract your assets from the figure you calculate.)
• You’ll want to check rates from different, well-rated insurance companies to see where you’ll get the most enticing quote. You can look into the details and evaluate whether the premiums are fixed or if they will increase (if the latter, why and by how much?). You can also decide if you want a policy that requires or waives a medical exam, and consider whether a term policy offers renewal options and how costly they would be.
These factors will help you find a policy that says, “Yup, I’m The One!”
The Takeaway
As you have seen, there’s a galaxy of options when it comes to buying life insurance. Not only are there different kinds of insurance (term versus permanent, and many permutations), but there are also a range of rates to suit many budgets. Factors that can impact rates include how much coverage you want, for how long, your age, your health, and other attributes.
Only you can know what policy will be the perfect, personalized fit for you, but do make sure you seriously consider investing in a policy as soon as possible. This kind of protection is a key element of your financial life, and helps give you peace of mind, no matter how uncertain the times.
SoFi has partnered with Ethos to offer competitive term life insurance policies that are quick to set up and easy to understand. Apply in just minutes and get an instant decision. As your circumstances change, you can update or cancel your policy with no fees and no hassles.
Explore your life insurance options with SoFi Protect.
Social Finance Life Insurance Agency, LLC (SoFi Agency) does not issue or underwrite insurance. SoFi Agency is compensated by Ethos for each issued term life application submitted.
The policies offered are from Ethos Technologies Inc. Coverage and pricing is subject to eligibility and underwriting criteria. Ethos Technologies Inc. (Ethos) operates in some states as Ethos Life Insurance Services. CA license #0L28949; AR license #100164629. Ethos offers policies issued by the carriers listed at www.ethoslife.com/carriers. Products and their features may not be available in all states. To help avoid requiring a medical exam, the Ethos application asks certain health and lifestyle questions.
SoFi Agency does not guarantee the services of any insurance company. Once you reach Ethos, SoFi is not involved and has no control over the products or services involved.
Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.
Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.
Checking Your Rates: To check the rates and terms you may qualify for, SoFi conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
Broker, Fulfillment, Servicing Software Products; Housing for the Aging Population
<meta name="smartbanner:author" content="We now have a native iPhone and Android app. Download the NEW APP”>
This website requires Javascrip to run properly.
Broker, Fulfillment, Servicing Software Products; Housing for the Aging Population
By: Rob Chrisman
Thu, Dec 28 2023, 10:54 AM
If someone reports their company for tax evasion in the U.S., he or she will receive 30 percent of the amount collected. Have you ever loaned someone money and had them not pay you back? Here’s one thing that you can do to them (IRS’ 1099-C). While we’re on the general topic, despite strong retirement savings, Fidelity Investments’ Q3 2023 analysis reveals a surge in hardship withdrawals and 401(k) loans, addressing short-term financial challenges. By the numbers: 3 percent took hardship withdrawals (up from 1.8 percent in 2022). 8 percent tapped into 401(k) loans (compared to 2.4 percent last year). The silver lining? Retirement balances are on the rise, and savings rates remain steadfast. For those planning retirement, consider suggesting reverse mortgages as a game-changer. They offer an alternative, allowing access to funds without swiftly depleting hard-earned savings. If you haven’t set up reverse division at your shop, well, 10,000 people a day turn 62. Today’s podcast can be found here, and this week’s is sponsored by Gallus Insights. Mortgage KPIs, automated at your fingertips. Gallus allows you to go from data to actionable insights. If you can use Google, you can use Gallus. Hear an Interview with attorney Brian Levy on the NAR lawsuits and the implications for housing finance moving forward.
Broker and Lender Software, Products, and Programs
Are you a compliance nerd? A group of mortgage industry veterans has launched a software company for loan servicing that is getting a lot of attention. Keep your eyes and ears open for MESH software (Mortgage Enterprise Servicing Hub), which is their brand name for a series of software products aimed at loan servicers. The first product runs hundreds of compliance rules on loan portfolios daily, so servicers have a daily review of all loans against everything the CFPB, Agencies and States can throw at them. Look up “MESH Auditor”.
It’s time to start planning for the year ahead! Join the Computershare Loan Services (CLS) team from January 22 – 24 in The Big Easy for MBA’s Independent Mortgage Bankers Conference. With CLS’ originations fulfillment, co-issue MSR acquisition, subservicing, and mortgage cooperative, IMBs can streamline their operations, minimize expenses, and maximize profits. Contact the CLS team today to schedule a meeting in New Orleans.
Ring in the new year with a kinder outlook by joining us for the highly anticipated “Kind Mindset” event presented by Kind Lending. Taking place on January 16th, 2024, at The Buckhead Club in Atlanta, GA, this immersive event is designed to empower attendees with valuable insights on growth, success, and mindset. With an impressive lineup of speakers, including Kind Lending’s CEO/Founder, Glenn Stearns, and special guest Captain Charlie Plumb, 6-year Prisoner of War and former Fighter Pilot, this event promises to be a transformative and inspirational experience. Get ready to cultivate a “Kind Mindset” and embark on a journey of transformation and success. Register today.
Aging, Down Payments, and Housing Demographics
Do you think getting old is hard? The U.S. Census Bureau released a report showing that about 4 million U.S. households with an adult age 65 or older had difficulty living in or using some features of their home. About 50 million, or 40 percent, of U.S. homes had what were considered to be the most basic, aging-ready features: a step-free entryway into the home and a bedroom and full bathroom on the first floor. About 4 million or 11 percent of older households reported difficulty living in or using their home. The share increased to nearly 25 percent among households with a resident age 85 or older. Over half (about 57 percent) of older households reported their home met their accessibility needs very well, but only 6 percent of older households had plans to renovate their home in the near future to improve accessibility.
In general, Zillow expects home prices to remain roughly flat in 2024, with only a 0.2% increase in its housing market index. Existing home sales are expected to fall further to 3.74 million. Zillow does mention that this forecast does not take into account the latest forecast from the Fed, and the expectation for big rate cuts in 2024.
Falling mortgage rates have put some spring in the step of the homebuilders, according to the latest NAHB / Wells Fargo Housing Market Index. As one would expect, with mortgage rates down roughly 50 basis points over the past month or two, builders are reporting an uptick in traffic as some prospective buyers who previously felt priced out of the market are taking a second look. With the nation facing a considerable housing shortage, boosting new home production is the best way to ease the affordability crisis, expand housing inventory and lower inflation. But builders have lagged production for so many years…
Non-builder loan officers find the builder world a tough nut to crack. Many, if not most, big builders are dealing with the mortgage rate issue by subsidizing buy-downs. Builders generally build free upgrades into their models, and these funds are being used to buy down the rate. The builder gets full price for the house, loses a few points on the mortgage, which might have instead gone to upgraded countertops or something else.
Even if one can get approved for a loan, buying can still be prohibitively expensive. Receiving help from family and friends for that crucial down payment can be a major turning point for many consumers. In fact, nearly 2 in 5 homeowners (39 percent) have received down payment assistance, according to LendingTree’s Mortgage Down Payment Help Survey, of nearly 2,000 U.S. consumers. 78 percent of Gen Z homeowners reported some financial support for a down payment, mostly from their parents. 54 percent of millennials have received down payment help, followed by 33 percent of Gen Xers.
Almost a third (31 percent) of Americans think putting down 20 percent for a down payment is obligatory. However, 59 percent of current homeowners say their down payments were less than 20 percent of the home’s purchase price, and just 29 percent put down 20 percent or more. One in 10 Americans never took out a mortgage, while 15 percent had a mortgage but have since paid it off. Baby boomers are the most likely to have paid off their mortgages, at 29 percent.
As anyone shopping for a home can tell you, it’s slim pickings out there. For many years we have been seeing the biggest squeeze in the starter home category. It appears that for years part of the problem is a lack of confidence to move up to the next category. People in starter homes are staying put, which is keeping homes off the market.
Capital Markets
It was another slow news day yesterday without any meaningful economic data or news to move sentiment. However, investors are laden with optimism as a soft-landing for the economy comes into view and seem to be throwing caution to the wind with over 150 basis points of Fed Funds easing fully priced in for next year. In accordance with that, benchmark bonds rallied to fresh highs yesterday after the U.S. Treasury sold $58 billion in 5-year notes to excellent demand. The strong auction exposed some short positioning, and it invited additional late buying. That followed Tuesday’s $57 billion 2-year Treasury auction that attracted a record number of indirect buyers to snap up high yields before the Fed’s anticipated rate cuts, which are fully priced in to begin at the March meeting in just over 80 days. Yields on benchmark treasuries have dropped to levels not seen since the summer.
Today has a fuller calendar than the past two sessions in regard to economic news. We are under way with initial jobless claims (+12k to 218k, a little higher than expected), continuing claims, advanced economic indicators for November (goods trade balance, retail inventories, and wholesale inventories), none of which moved rates. Later today brings the NAR’s Pending Home Sales Index for November, Freddie Mac’s Primary Mortgage Market Survey, and another large amount of supply from the Treasury, headlined by $40 billion 7-year notes. We begin the day with Agency MBS prices worse a few ticks (32nds), the 10-year yielding 3.81 after closing yesterday at 3.79 percent, and the 2-year is down to 4.25.
Download our mobile app to get alerts for Rob Chrisman’s Commentary.
Share via Social Media:
All social media shares will include the image and link to this page.
PPE, Audit and Tax, LO Sales, Subservicing Tools; Fannie and Attorney Opinion Letters
<meta name="smartbanner:author" content="We now have a native iPhone and Android app. Download the NEW APP”>
This website requires Javascrip to run properly.
PPE, Audit and Tax, LO Sales, Subservicing Tools; Fannie and Attorney Opinion Letters
By: Rob Chrisman
Tue, Dec 19 2023, 10:56 AM
Change is constant: How ‘bout U.S. Steel, the Pittsburgh steel producer that played a key role in the nation’s industrialization, being acquired by Nippon Steel in an all-cash deal valued at approximately $14.1 billion? (Let’s not forget that GM and Ford have been dwarfed by Tesla, Mercedes, Toyota, and even Volvo.) I had my share of “hard hat” jobs growing up, so I noticed OSHA announcing a switch from traditional hard hats to safety helmets. Is that the politically correct term now? Speaking of terms, “smishing” is a term that combines “SMS” and “phishing” where hackers try to get your personal and banking information through unsolicited text messages on mobile devices by pretending to be government agencies, companies that you might have done business with, or a package delivery service. They’ll say something to get your urgent attention like a text about a free gift that you have to pay a small “shipping fee” to receive or they will send a warning about suspicious activity on your account. Be careful out there! Today’s podcast can be found here, and this week’s is sponsored by Lender Toolkit’s AI-powered AI Underwriter and Prism borrower income automation tools. Get loans approved in under two minutes. By providing lightning-fast underwriting decisions, your market reputation with borrowers and Realtors will soar. Listen to an interview with Arch MI’s Carl Tyree on mortgage insurance (MI) misconceptions and various product offerings that separate MI companies from one another.
Lender and Broker Products, Programs, and Services
Some things are just better together. The cast of Gilligan’s Island. John, Paul, Ringo, and George. And, of course, Myrtle’s favorite Tom and Jerry. Putting several good pieces together to create a better whole sums up what we think of nCino’s Mortgage Suite (formerly SimpleNexus). With a combination of great ideas and great technology, nCino’s Mortgage Suite automates loan processing and closing, delivers a modern customer experience, surfaces data insights and simplifies incentive compensation management, thus increasing an FI’s mortgage profitability (something we could all use about now). See how all the parts work together in this short video.
Assessing key performance indicators and operations during current industry headwinds is a great way for mortgage lenders to set themselves up for success for 2024 and beyond. In particular, looking at how your loan origination system (LOS) is maximizing efficiency, providing returns on investments and ultimately, helping you win business over competitors is a great place to start. Why? Because your LOS should serve as the central hub of the overall tech stack, allowing you to orchestrate your entire business from a single system of record. Read this recent article, to learn how Encompass® by ICE Mortgage Technology® is enabling lenders to manage their entire lending workflow in one place, from the customer’s initial point of thought through investor delivery.
Did you know that your LOS is the most powerful source for new leads? Every loan application, past or present, not only represents a marketable borrower, but any realtors on loan files can lead to even more opportunities. OptifiNow’s Contact Harvesting is a feature that automatically imports any realtors listed on an LOS loan file, creating a vast source of referral partners that can be easily marketed to. Contact Harvesting dynamically updates your database and creates links between borrowers and realtor records, allowing you to accurately track the amount of volume that a realtor is generating and calculate the pull-through rate of their referrals. As the mortgage market heats up, the OptifiNow CRM platform provides you with innovative tools that help you leverage the data you already have to increase loan volume. Contact OptifiNow to learn more about our flexible and cost-effective CRM solutions.
Is it a challenge getting what was promised out of your current subservicer? New regulations are always moving the compliance goal posts and your customers are craving the newest technology and high-quality customer experience to meet their needs. After all, aren’t those the reasons you contracted with them? Perhaps it’s time for a change. Let Servbank show you how its cutting-edge, fully transparent and award-winning servicing platform (SIME), combined with their family of caring Customer Care reps, will protect your company from regulatory misses and keep your customers loyal by delivering a superior experience every time. If your current subservicer promised to make life easier for you, but continues to miss the mark, now is the time to partner with Servbank, the nation’s only fintech bank subservicer, who can meet your unique needs.
Feeling motivated and ready to conquer your 2024 sales goals? TrustEngine is here to help with Dave Savage’s three top sales coaching videos of the year. Featuring some of the industry’s top producers, tune in for invaluable sessions from the best in the business and share them with your LOs. First, explore Dave’s most popular 10x interview of the year, How Daniel Sa Is Closing Over 300 Loans This Year. Then, dive into Separation Season with Jeremy Forcier for essential strategies and explore the world of Moneyball Mortgage with Jim Deitch, and so much more. Don’t miss this opportunity to gain essential insights and strategies for the upcoming year. Your path to sales excellence starts here.
“With nearly 40 years of experience in mortgage banking, Richey May knows the industry from every angle. Many of our team members are credentialed industry experts who dedicate much time to building up other industry experts. From this expertise, we’ve created a wealth of services and products to help lenders stay ahead: audit and tax services, cybersecurity solutions designed to protect company assets and sensitive borrower information, intelligent automation tools for streamlined operations… you name it! Whether you’re leveraging our innovative platforms or having us work as your extended team for outsourced internal audit or accounting services, get ready to tackle challenges faster with some serious firepower on your side. Everything you need to prepare for 2024: contact our experts today!”
“There are many reasons the Optimal Blue PPE has been the market-leading product, pricing, and eligibility engine for years, one being that we ensure our customers have the functionality and support they need through changing regulatory and market environments. Built as an open API platform, the Optimal Blue PPE allows customers to access critical product and pricing information on-demand. With an average of 300+ releases per year, users receive the latest innovations they need to operate in any market conditions. This year’s releases included: a mobile app, an updated user interface, and advanced loan officer compensation support. And with 50+ developers dedicated to the PPE, our commitment to innovation is continuous. This means Optimal Blue customers have the tools to tackle whatever the market throws their way. Reach out to us today to ensure you have the tools and support you need to win in this market.”
“Our 2023 accomplishments set the stage for what is to come. As we move into 2024 and beyond, Polly will continue to revolutionize mortgage capital markets and democratize revenue optimization, automation to reduce costs, efficiency gains, and more, all while providing a differentiated and completely unmatched loan officer and lender experience.” What else can you expect to see from Polly in 2024? The company’s Founder and CEO, Adam Carmel, reflects on a record-breaking 2023 and shares his excitement for 2024 in this open letter.
Conventional Conforming News
The lion’s share of loans are processed and/or underwritten and/or sold to Freddie Mac and Fannie Mae. Who’s doing what out there?
Fannie Mae turned some heads recently with more thoughts on Attorney Opinion Letters in the title industry. Stacy Mestayer observed, “Fannie’s announcement will expand the use of AOLs to hundreds of thousands of more properties. This is an interesting update to many as ALTA has led many in the industry (and on Capitol Hill) to believe that title waivers and title alternatives are the same. While Fannie has opted not to pursue a pilot for title waivers at this time, it never wavered in its support for the AOL alternative.”
Two new underwriting solutions are now available from Fannie Mae to help lenders better serve borrowers. DU early assessment, which provides a DU risk assessment during a lender’s pre-qualification process with a single bureau soft credit report, and Income Calculator, which helps easily calculate income for self-employed borrowers. Discover how these innovations and other updates help simplify the lending process and work toward removing barriers and improving equitable access to credit.
Fannie Mae Announcement SEL-2023-11: December Selling Guide Updates includes information on permitting lenders to use alternative options to meet verbal verification of employment requirements, allowing optional use of Income Calculator to determine the monthly qualifying income for self-employed borrowers, allowing lenders to gross-up certain nontaxable income without providing additional documentation. Incorporate a list of programs into policy to assist lenders with their review of shared equity providers and transactions, and other miscellaneous updates.
Fannie Mae updated the Partner Playbook for the Credit Score and Credit Reports Initiative to include information on FHFA’s Nov. 21 Enterprise Regulatory Capital Framework (ERCF) final rule, share ways the public can participate in the stakeholder forums, and highlight the timeline to reflect the delay of milestones related to the bi-merge credit reporting option initially proposed for 4Q 2023 and 1Q 2024.
During the weekend of Feb. 10, 2024, Fannie Mae will implement an update to DU version 11.1. This will include updates to improve DU’s ability to identify rent payment history within asset verification reports and other changes to align with the Selling Guide. For additional information, view Fannie Mae DU Version 11.1 Feb. Update Release Notes.
In the December 2023 Appraiser Update, Fannie’s Mae’s 25th edition, timely appraisal topics from a 2015 Lender Letter is revisited, recent changes to requirements for manufactured housing appraisals, explain how to get answers when you need them, and offer a reminder for how to treat seller concessions.
Per Pennymac Announcement 23-85, Conventional LLPAs effective for all Best Efforts Commitments taken on or after Thursday, December 14, 2023 will be updated as follows:
Improving values for the ‘2nd Home Additional’ LLPA on the ‘LLPAs by Product Feature for All Eligible Loans’ LLPA Grid. Updating footnote for the “2nd Home Additional’ & ‘Investment Additional’ LLPAs.
Citizens Correspondent National Bulletin 2023-21 includes information on product updates on Conventional Conforming Products, Employment Offers or Contracts – DU, Income eligibility and calculations, timeshares, and updated appraisal practices, VA Products, Medical and non-medical collection and charge-off accounts. Citizens Correspondent National Bulletin 2023-22 provides information on Conventional Conforming, FHA and VA Product Loan Limits and Disaster Tax Filing Relief.
Kind Lending announced the adoption of Freddie Mac guidance as pertains to ADUs (Accessory Dwelling Units) and the allowance of income from the ADU used in qualifying.
Capital Markets
Global financial conditions are loosening as investors expect central banks to begin lowering interest rates next year. A Goldman Sachs index that tracks corporate borrowing costs and capital markets conditions showed on Friday global financial conditions at their most accommodating level since early August. The end of the belief that central banks will keep interest rates “higher for longer” has fueled optimism in the corporate bond market, with yields on riskier corporate debt falling below 8 percent for the first time since February. Even though we haven’t seen one rate cut yet…There has been a significant easing in financial conditions that is giving companies breathing room.
Let me repeat something from last week that came from Dr. Elliot Eisenberg! “While the Fed kept rates unchanged, something entirely expected, it was the shift from a hawkish pause, one with a rate hike bias, as was the case after the last two meetings, to a dovish pause, a pause with a future rate reduction bias due to the declining inflation rate, that led to a record Dow Jones close. Discussion will now focus on the date of the first cut.” Sure enough, that is what we are seeing.
After Fed Chair Powell and his colleagues indicated that they are likely to cut rates three times next year, traders have largely ignored efforts by Fed officials to temper expectations and market rates have fallen sharply in anticipation of the central bank’s policy pivot becoming a reality. There has been a lot of Fed-speak after the FOMC meeting attempting to pour cold water on the narrative that rate cuts are coming quickly and aggressively, the latest being Chicago Fed President Goolsbee saying that he was a bit confused by the market’s reaction to the latest FOMC meeting/comments and Cleveland Fed President Mester saying that the market is a little bit ahead of the Fed’s rate-cut view. The Fed claims that markets are over their skis with respect to rate cuts, but markets are maintaining pricing for six rate cuts by the Fed before the end of 2024, with the first cut coming in March.
Putting aside the Fed momentarily, this week will have a lot of housing data. We received the NAHB Housing market index for November yesterday, which increased from the last reading, but not quite to market expectations. Today brings housing starts/building permits and existing home sales are tomorrow. We will also get another revision to Q3 GDP, personal incomes and outlays, and leading indicators. Real GDP is expected to be revised down slightly in the third estimate due to downward revisions to September retail sales, business inventories, and industrial production. Personal income is expected to have accelerated in November due to strong gains in wages and salaries pushing household spending higher.
Also on tap this week is the Fed’s favored inflation measure, PCE, where core inflation is expected to come in at a 3.3 percent annualized pace, down 0.2 percent from the previous month.
Today’s economic calendar is under way with housing starts and building permits for November: 1.56 million (higher than expected) and 1.46 million, respectively. Expectations were for starts slipping 17k versus the prior month to 1.355 million with permits 48k lower at 1.450 million. Later today brings Redbook same store sales and remarks from Atlanta Fed President Bostic. Today is also Class D 48-hours. We begin the day with current coupon Agency MBS prices a few ticks (32nds) better than Monday night and the 10-year yielding 3.90 after closing yesterday at 3.96 percent.
Download our mobile app to get alerts for Rob Chrisman’s Commentary.
Share via Social Media:
All social media shares will include the image and link to this page.
The landscape of real estate is undergoing significant transformations in 2024, driven by a confluence of technological advancements, shifting market dynamics and evolving consumer behaviors.
1. Technology 2024: Proptech challenges and profitability pursuit
The proptech sector, a technological cornerstone of the real estate space heavily reliant on venture capital, has encountered formidable challenges in the past year. The Federal Reserve‘s rate hikes and a general slowdown in venture capital investment have created a challenging environment, leading to layoffs and financial struggles for prominent companies. The housing market’s conditions, characterized by soaring prices and limited availability, have compounded these challenges.
As we enter 2024, proptech companies are likely to place an unprecedented emphasis on monitoring their balance sheets, with a sharp focus on immediate-term profitability. The year will unfold with a strategic shift in business models, emphasizing the expansion of product offerings and investments in consumer education to adeptly navigate the housing market slowdown. Technology is set to emerge as a crucial tool in such sectors as the rental segment, with the advent of online rental screening software, enhancing efficiency, rent payment reporting and thwarting fraudulent activities.
Despite uncertainties, optimism is likely to pervade the industry, with companies leveraging partnerships and eyeing potentially lucrative IPOs in the future. The resilience and innovation demonstrated by the formation of new companies underscore the sector’s potential to thrive in both adversities and favorable conditions.
The technology likely to have the biggest impact in 2024
Data-driven property management: Real-time insights into property performance optimize rents, maintenance schedules and tenant satisfaction.
Remote work: Technology enablement creates more flexibility and freedom.
Cybersecurity in real estate: Increasing investments protect sensitive property and financial data in the digital realm.
Artificial intelligence (AI) and predictive analytics: Revolutionizing decision-making with data-driven insights, predictive property values and investment opportunities, expediting the process by removing manual tasks.
Augmented reality (AR) and virtual reality (VR): Transforming property viewing experiences with virtual tours and enhanced property visualization.
2. The emergence of secondary markets will challenge the traditionally popular locales in 2024
In a notable departure from its traditionally local focus, more than ever real estate agents in local markets are needing to think more nationally as opposed to regionally. This shift is propelled by the increased migration of people, as evidenced by a variety of data points. RentSpree user statistics have showcased a significant spread of rental applicants across the nation. Between 2021 and 2023, approximately 17% of rental applicants sought housing in other states, reflecting an upward trend from 14% in 2020 and 12% in 2019. This trend is likely to intensify this coming year.
This nationalization is underpinned by two fundamental factors. First, housing affordability has plummeted to its lowest level in over 30 years. The combination of escalating home prices and rapid increases in borrowing costs has prompted individuals to explore housing options beyond their current locations. Secondly, remote and hybrid work options, increasingly prevalent since the pandemic, are becoming a permanent fixture of the professional landscape.
As we prepare for 2024, the challenges of affordability and the evolving nature of work will foster increased migration to secondary markets nationwide. This shift not only holds promise for relative affordability but also aligns with lifestyle preferences. The more nationalized approach to real estate will impact organizations supporting industry professionals and the individuals actively servicing the sector.
3. Multiple listing services need to become the source of truth for rentals
Multiple listing services (MLSs), traditionally recognized as the source of truth in the for-sale segment, will more so than ever face the imperative to extend this role to the rental market in 2024. The current absence of rental listings on most MLSs has significant repercussions, resulting in financial losses for both agents and tenants. More than 60% of rental properties are absent from MLSs, curtailing exposure and profitability for agents and landlords alike.
Advocating for standardized data for rental listings, diverse compensation models for agents and the provision of reliable and timely information for renters will be key, especially this coming year. Rentals will continue to play an increasingly important role in the real estate market and people’s lives given the severe affordability issues permeating the for-sale sector. The inclusion of rentals in MLSs stands to streamline the rental process, minimize delays and instill efficiency. The benefits extend to increased agent commissions, strengthened sales pipelines and a reduction in fraudulent activities.
Bright MLS, one of the largest MLSs nationwide, is leading the way and has integrated rental listings with commendable success. This proactive move serves as a testament to the positive outcomes achievable through aligning MLSs with the evolving dynamics of the real estate landscape.
4. Flourishing during challenging times: A tale of two (interconnected) markets
The prospects of homeownership in 2024 remain elusive for many. With rates hovering between 7% and 8% and single-family home prices still at record highs, the financial barriers to purchasing a house are and will continue to be formidable. The cost differential between buying and renting, with the former averaging 52% higher, underscores the financial challenges associated with homeownership.
In contrast, the rental market is emerging as a pivotal player, presenting increased choices and decreased competition for renters. Construction of new units, as highlighted by a recent Zumper National Rent Report, contributes to a market dynamic where prices will continue to decrease in numerous regions. As a result, the focus in 2024 further pivots towards the rental market, offering a lifeline to those seeking shelter as well as those servicing the housing market.
This paradigm shift in the real estate landscape presents a unique opportunity for real estate professionals. With the for-sale market navigating a precarious juncture marked by compensation lawsuits and affordability concerns, the emphasis in 2024 will be on generating leads and income through other avenues, such as the rental market. Rentals, therefore, will not just help to bridge the gap for agents during challenging times but also serve as an investment into the future for both new and seasoned real estate professionals.
5. Building a fairer financial future toward homeownership
With affordability as the primary concern heading into 2024, tools intended to support greater financial empowerment will continue to gain prominence this coming year. Rent payment reporting is one of the initiatives that will play a more prominent role in fostering a fairer financial future for all participants in the real estate ecosystem.
Major players in the mortgage industry, such as Fannie Mae and Freddie Mac, have initiated programs to incorporate rent payments into credit histories. Fannie Mae’s pilot program, extended until December 2024, signifies a commitment to exploring the far-reaching implications of including rent payment history in credit reporting.
This inclusion carries profound empowering potential, influencing loan approvals and addressing racial disparities prevalent in the housing market. As we chart the trajectory towards a more equitable financial future, additional private sector solutions are likely to emerge in 2024 and become instrumental in facilitating this transformative change.
In summary, the real estate landscape of 2024 is marked by a dynamic interaction of technological advancements, market dynamics and socioeconomic influences. The various trends mentioned above collectively shape a narrative of an industry undergoing constant change. Success in 2024 will hinge on the capacity to embrace change and capitalize on emerging opportunities.
Michael Lucarelli is the CEO and co-founder of RentSpree.
Update 12/15/23: Just a reminder that this $250 signup bonus is still around.
Update 10/24/22: Card is now live, application link here.
Update 10/19/22: Thanks to the official press release we now know the following:
Card will have a $95 annual fee, waived first year
Sign up bonus of $250 after $2,000 in spend within the first 120 days
Pilot program offering a card with a LED light that lights up when you make a contactless payment
Original post: U.S. Bank is launching a new credit card called ‘U.S. Bank Shopper Cash Rewards Visa Signature Card‘, it’s not accepting applications yet but you can join the waitlist. At the moment we only know the earning rates on this card and they are as follows:
6% cash back on combined eligible purchases each quarter with two retailers you choose ($1,500 limit)
Ace Hardware
Amazon.com
Anthropologie
Apple
Bed, Bath, & Beyond
Best Buy
Chewy.com
Crate & Barrel
Disney
Home Depot
Ikea
Kohl’s
Lowe’s
Lululemon
Macy’s
Menards
Nordstrom
Pottery Barn
QVC
Restoration Hardware
Target
Walmart
Wayfair.com
Williams Sonoma
5.5% cash back on prepaid hotel and car reservations booked directly in the Rewards Travel Center
3% cash back on eligible purchases each quarter in your choice of one everyday category, like wholesale clubs, gas and EV charging stations, or bills and home utilities ($1,500 limit)
A new mortgage help plan coined “Project Lifeline” was unveiled today by the Treasury Department and the Department of Housing and Urban Development.
The plan will assist borrowers who are 90 days or more past due on their mortgage, and will not be limited to high-cost subprime mortgage holders like previous plans targeted.
Borrowers with prime loans, Alt-A mortgages, fixed-rate loans, and second mortgages will also be eligible for assistance under the new plan.
Project Lifeline will allow seriously delinquent homeowners to delay foreclosure proceedings for 30 days while lenders attempt to work out new terms to avoid one.
“For many families, Project Lifeline will temporarily pause the foreclosure process long enough to find a way out. Loan modifications may follow. And, this program is not only available to subprime borrowers but to people with any kind of home mortgage,” said HUD Secretary Alphonso Jackson.
“There’ll be homeowners who still take no action and some will still walk away,” Treasury Secretary Henry Paulson said. “But some borrowers facing immediate foreclosures may find solutions.”
Letters will be sent out to homeowners more than 90 days behind on their mortgage, at which point the homeowner has 10 days to respond and provide additional financial information so the lender is able to determine new mortgage payment options.
It will initially involve major mortgage lenders like Bank of America, Citigroup, Countrywide, JPMorgan Chase, Washington Mutual and Wells Fargo, on a pilot basis.
The move comes as banks and lenders continue to take on huge losses related to the recent rise in foreclosure proceedings.
The plan is intended to supplement efforts already in place via programs like FHASecure and Hope Now, which offer some solutions to homeowners but leave many others with few places to turn.
“The sum total of these actions is a powerful correction to the downward spiral of the housing market. It will lead to a reversal of misfortune, saving homes and equity, providing necessary sanity and salvation for many families on the brink of foreclosure,” said Jackson.
It’s good to see that government officials are finally realizing that it’s not just a subprime crisis, but rather a complete overhaul that is needed.
As high interest rates and housing prices weigh down potential home buyers, the Neighborhood Homes Investment Act could be on the way to help.
The proposed federal initiative would enable better affordability for home buyers by injecting $16 billion for adding more housing stock to the market and $10.1 billion for down payment assistance.
While it still needs to pass all three branches of government, it’s helpful to understand the legislation if it gets signed into law. Here’s what you need to know.
Check your home buying eligibility. Start here
What is the Neighborhood Homes Investment Act?
Introduced in 2023, the Neighborhood Homes Investment Act (NHIA) is a bipartisan bill aiming to boost housing affordability through increased development and down payment assistance.
As it currently stands, it would devote $16 billion toward the building and rehabilitation of an estimated 400,000 homes, according to a White House statement. The proposal would also allocate $10 billion in down payment assistance and a $100 million pilot program to supplement opportunities for first-generation and/or low wealth first-time homebuyers.
Verify your home buying eligibility. Start here
“Everyone deserves a safe and affordable place to call home. Our bipartisan tax credit will drive housing investments and revitalize neighborhoods … while keeping them affordable for low- and moderate-income families,” Senator Ben Cardin (D-Md.) said in a press release. “This credit will allow individuals in these communities to build equity and wealth for their families.”
The ongoing dearth of available for-sale properties has held back the entire housing market. Coupled with the rapid mortgage rate growth from 2023, fewer borrowers can afford homeownership and fewer homeowners want to sell.
“The number of homes that are available for sale is the lowest or close to the lowest it’s ever been,” said Mortgage Bankers Association Deputy Chief Economist Joel Kan. “A lot of that has been driven by the lock-in effect — many borrowers have lower mortgage rates than what’s being offered right now, so they’re just not willing to sell or list their homes.”
Has the Biden Neighborhood Homes Investment Act been passed?
As of November 2023, the Biden Neighborhood Homes Investment Act has not been passed, so the funding is not yet available.
Congress still needs to approve the proposed legislation before the President signs it into law. There is no set timeline for the act to pass. It is possible that it could be passed in the near future, but it is also possible that it could be delayed or even defeated in the process.
Other policies in the legislative pipeline
Even more federal help for borrowers could potentially be on the way as well. Similar to the NHIA, two other notable bills intended to help home buyers hang in bureaucratic limbo.
The First-Time Home Buyer Tax Credit would provide up to $15,000 in refundable tax credit to first-time borrowers. As long as the house isn’t sold within four years, the credit won’t need to be repaid. The second is the Downpayment Toward Equity Act. If signed into law, this would give eligible first-time home buyers a $25,000 cash grant to put toward their purchase.
Help for first-time home buyers
Buying property is a major milestone and often the largest financial decision people make.
Check your home buying options. Start here
While these proposed bills could potentially alleviate some affordability issues, plenty of helpful solutions already exist if you’re in the market to buy your first home. These come in the form of state assistance programs and special mortgages.
First-time home buyer mortgages
First-time home buyer loans are specifically designed with more favorable terms for the borrower, aimed to make homeownership more attainable.
Below is a quick rundown of these loans and their base qualifications:
Program
Minimum Credit Score
Down Payment Requirement
Other Requirements
FHA Loans
580 (with 3.5% down)
3.5%-10%
Mortgage insurance is required. Property must meet certain standards
Conventional 97
620
3%
At least one borrower must be a first-time home buyer. Private Mortgage Insurance may be required
Home Possible
660
3%
Income limits apply. Homeownership education required
HomeReady
620
3%
Income limits apply. Homeownership education required
USDA Loans
640
0%
Must be in a USDA-eligible rural area. Income limits apply
VA Loans
Varies by lender
0%
Available to veterans, active-duty service members, and certain members of the National Guard or Reserves
Broken down on a more local level, every state offers its own first-time home buyer program. These programs are customized to their markets, fitting the needs of the buyers within them.
Verify your low-down-payment loan options. Start here
Down payment assistance programs
Additionally, down payment assistance (DPA) can provide a big hand in clearing the financial hurdles to homeownership. The best part is you don’t necessarily need to be a first-time buyer to qualify for some DPA programs.
Every state has its own DPA to potentially take advantage of, found through local housing agencies, lenders, and city and state websites.
Explore your options
The housing market would get a much needed inventory boost if the Neighborhood Homes Investment Act gets passed. It would also inject more capital into down payment assistance programs for first-time home buyers.
In the meantime, those looking to buy their first home can and should still explore their loan options and see what financial assistance they may qualify for. Following a step-by-step guide for first-time home buying can also help you set expectations and get everything you need in order.
If you’re ready to begin your path to homeownership, contact a local lender today.
Time to make a move? Let us find the right mortgage for you
For many frequent flyers in 2023, functional Wi-Fi has become a critical in-flight amenity. Many travelers demand access to the cloud while they’re, well, in the clouds.
But sometimes, the Wi-Fi is no good. It takes three tries to reload a page, or the connection cuts out right when you’ve found what you were looking for.
That’s frustrating enough for passengers on airlines like JetBlue that offer complimentary Wi-Fi, or for those who get free in-flight Wi-Fi through their airline elite status or an airline-branded credit card. But it’s most brutal for the people who pay specifically for in-flight Wi-Fi yet receive a service that hardly serves them at all.
I had a faulty Wi-Fi connection on a United Airlines flight in September from San Francisco to Orlando. On U.S. domestic flights, United sells Wi-Fi service for either $8 or 800 miles for MileagePlus members and $10 for everyone else. I opted to fork over 800 miles (NerdWallet values 800 miles at $9.60) for what’s officially labeled as “In-flight Wi-Fi Premium Full Flight.”
What I got wasn’t premium, nor did it last the full flight.
And it didn’t affect just me. Shortly after takeoff, the pilot announced that the internet wasn’t working and that the crew would reset the system. Even after the reset, the service kept cutting out intermittently throughout the five-and-a-half-hour flight. When it did work, the speed was slower than 1990s dial-up. Simply checking emails became an exercise in frustration.
Can you get a refund for bad Wi-Fi?
I contacted United customer service through the airline’s website to request a refund. I sent a brief email outlining my experience, including a screenshot of the poor connection, plus my flight number and date.
Within a day, a United customer service representative responded, and my miles were redeposited in my MileagePlus account within 48 hours.
Poor onboard Wi-Fi aside, my experience with United was pretty easy, and the airline hardly masks your ability to request a refund. United’s FAQ page even includes a link to a refund form (it’s the same page you’d use to request any sort of United refund).
United says that it monitors flights for low connectivity and that if it can tell you were on an affected flight, it will automatically refund you the next day. That didn’t happen in my case — probably because I booked my flight through a travel portal rather than directly with the airline — but United explicitly recommends that you request a refund if you don’t get one automatically.
But that doesn’t mean every airline will treat you the same.
Some airline customer service departments might be slower to respond. Some might try to offer you compensation in the form of miles, even if you purchased Wi-Fi in cash. Some might completely ghost you.
Making your case
To better your odds of getting a refund for bad in-flight Wi-Fi:
Provide documentation: Take screenshots of the poor connection quality or keep a log of the times when you tried to connect to the Wi-Fi and the specific errors you encountered. Include that information when you contact the airline.
Be specific: Provide as much detail as possible, including the flight you were on and the date.
Be polite and professional: Even if you’re frustrated, maintain a courteous tone when communicating with customer service. The customer service employee didn’t break the Wi-Fi.
Advocate for yourself: While you should be courteous, be explicit about what you want (assuming it’s a reasonable request). If you want a $8 refund for your $8 internet, state that. If the airline tries to offer you, say, 800 miles but you’d rather have the cash, be firm in how you want the refund.
Be patient: The airline may need to investigate your claim before issuing a refund. From there, it can take some time for the payment to process.
Also, be realistic about how good the Wi-Fi will be before purchasing. Most airlines are upfront about the fact that streaming video or downloading large files probably won’t work. Alaska Airlines says internet service slows during torrential rains, while the aircraft is banking or if there’s snow or ice on top of the plane. It also says to expect spotty service in certain places, such as north of the Arctic Circle.
In most cases, buying Wi-Fi doesn’t have to be a gamble. If the connection is bad, a refund might be easy to claim. Then again, you’ll need a good Wi-Fi signal to request it.
How to maximize your rewards
You want a travel credit card that prioritizes what’s important to you. Here are our picks for the best travel credit cards of 2023, including those best for:
Freddie Mac will launch a new fee-based repurchase alternative pilot program for performing loans in 2024, designed to improve the quality of performing loans through a potential replacement of its current repurchase policy for defective performing loans.
“The pilot will use a fee-based structure that is more efficient, transparent and rewards lenders that deliver high-quality loans,” the GSE said. “Specifically, lenders will not be subject to repurchases on most performing loans and will instead be subject to a fee-based structure based on non-acceptable quality (NAQ) rates.”
That fee uniformly applies to both medium- and large-sized lenders based on NAQ rates, and will be waived for smaller lenders unable to deliver volume large enough to generate an NAQ rate that is “statistically significant.”
“Loans that are non-performing within 36 months or subject to life of loan defects will still be subject to repurchase,” Freddie Mac said. “This fee structure will begin with a limited rollout with targeted lenders in early 2024.”
Last month, Federal Housing Finance Agency (FHFA) Director Sandra Thompson said that the GSEs must implement a fair, consistent and predictable process for identifying loan defects and the appropriate remedies for them during an October event hosted by the Mortgage Bankers Association (MBA) in Philadelphia.
“After multiple years of record-high loan volume, we have seen an increase in the absolute number of repurchase requests – which is to be expected,” Thompson said at the event. “The good news is that there has been a large decrease in repurchase requests since their peak in early 2022, as the Enterprises have worked through loans originated during the refinance boom.”
Thompson went on to say that both Freddie Mac and Fannie Mae have examined their existing processes and practices, which include improving the language in selling guidelines and providing more consistent feedback to lenders on buybacks to minimize ambiguity during the underwriting process.