Options trading offers a complex yet potentially rewarding approach to the stock market, allowing investors to buy or sell assets at predetermined prices within specific time frames. Unlike direct stock purchases, these contracts grant the right without obligating the transaction, providing a strategic tool for managing investment risks and capitalizing on market predictions.
This guide will explore the fundamentals of options trading, including the differences between call and put options, the process of getting approved for trading, and strategies for minimizing risks while maximizing returns.
What is an option?
An option is a contract that grants you the option buyer, the right, but not the obligation, to buy or sell a particular asset at a set price on a particular date or within a select window of time.
It’s also classified as a derivative, with the associated value directly linked to the underlying asset. This price point is also known as the strike or exercise price, and the expiration date specifies when the contract terminates.
But how does this benefit investors? Well, it’s a cost-efficient way to manage risk because you’re only investing in the opportunity to purchase shares at another date, and not the stock itself. Options also allow you to sell your existing shares at a set price if the market tanks to limit your losses.
How does options trading work?
However, it’s a bit more complex than simply buying and selling shares. In essence, options traders are taking a gamble on the direction they think the stock price will go in. That way, they won’t have to buy or short the actual stock when they think the market is going to skyrocket or dip.
Furthermore, there’s a relatively extensive process to get approved as an options trader. You’ll also need to open a brokerage account and maintain a set amount of reserves to remain in good standing as an investor.
And should you decide not to exercise the option, you’re free to walk away with no strings attached. You can also rake in a little more cash by selling the option, or options contract, to an investor who’s interested.
Benefits of Trading Options
There are several benefits to trading options, including:
Flexibility: Options can be used to hedge against potential losses in other investments, or to generate income through the writing of options.
Leverage: Because options allow traders to control a large amount of underlying assets for a relatively small investment, they offer significant leverage.
Limited risk: The potential loss on an options trade is limited to the premium paid for the option.
Customization: Options can be customized to meet the specific needs and objectives of the trader.
Liquidity: Options are traded on organized exchanges, making it easy to buy and sell them.
Versatility: Options can be used in a variety of market conditions, including bearish, bullish, and neutral markets.
Types of Options
Still sold on the idea of trading options? There are two types to choose from:
Call Options: these are deposit rights to purchase the stock at a later date. If the call option is not exercised before the expiration date, you lose your investment in the option and the right to purchase the underlying stock at the strike price.
Put Options: these are premiums paid to hedge against the risk of a market downturn. They are similar to an insurance policy that protects your investment. If the price of the underlying stock plummets, you will still have your right to sell a set number of shares at the exercise price. But if the market stays intact or swings upward and you decide not to sell, your premium is lost.
You should also know that call and put holders are owners of options contracts. They absorb minimal risk as there’s no obligation to buy or sell, regardless of market performance. Instead, they are free to exercise the option when they see fit.
By contrast, call and put writers are sellers of options contracts. Unfortunately, they’re exposed to more risk because they must follow through on their promise to buy or sell if the holder exercises their option.
Options Pricing
Options pricing refers to the process of determining the value of an options contract. There are several factors that can impact the price of an options contract. These include the underlying asset’s price, the option’s strike price, the time remaining until the option’s expiration date, the option’s implied volatility, and the risk-free interest rate.
One of the most widely used methods for calculating the price of an option is the Black-Scholes model. This model takes into account the aforementioned factors to determine the theoretical value of an options contract. Other methods for pricing options include the binomial model and the Monte Carlo simulation.
Keep in mind that the price of an options contract can fluctuate significantly over time, and may be affected by a variety of market conditions. Therefore, options traders should carefully consider the potential risks and rewards of their trades and use appropriate risk management strategies.
Risks and Rewards of Options Trading
Options trading can be a complex and risky endeavor, but it can also provide the opportunity for significant profits. It’s essential for investors to understand the potential risks and rewards involved to make informed decisions and manage risk effectively.
One way to minimize risk when trading options is to use investment strategies like spreading. This involves buying and selling options at different strike prices and expiration dates to offset potential losses.
Another investment strategy is to use stop-loss orders. They allow you to set a certain price at which your trade will be automatically closed to prevent further losses.
Additionally, you should diversify your portfolio and not rely too heavily on options trading. That way, if one trade doesn’t work out, you won’t be left with all your eggs in one basket.
Investors can maximize their profits and minimize risks by understanding options trading and implementing risk management strategies.
Getting Started with Options Trading
Getting started with options trading requires more than a simple phone call to a broker or an online purchase. It demands a proactive approach and thoughtful preparation to set the stage for your trading activities.
Step 1: Select a Brokerage Firm
Like it or not, you’ll have to work with a brokerage firm to get screened and cleared to trade options. But don’t just settle for the first broker you find. Shop around and carefully analyze your options before making a decision. Remember, they’ll be evaluating your experience, so you should do the same.
Do a little research to determine if they’ll be a good fit. Pay attention to consumer reviews, services they offer, costs or commissions structure, account minimums, and educational resources they offer, just to name a few.
Furthermore, inquire about educational resources, including self-guided online courses and webinars, along with telephone, virtual, and live support designed to help you identify and understand the most strategic routes when trading options.
Finally, feel free to ask questions as they arise to ensure you have all the information you need to make a well-informed decision. The more access you have to support staff, the better.
Remember, it’s your hard-earned money that will be used to buy options, so you want to make sure you derive the greatest benefit in exchange for your investment.
Step 2: Get Screened
Once you’ve selected a brokerage firm, the next step is to get screened. This is a prerequisite to being assigned a trading level. Before screening can begin, the broker will want to get an understanding of your investment goals and which types of options you’re most interested in. They will also inquire about your trading experience and will request additional information about your finances.
Your information will be compiled by the broker and analyzed to determine the optimal trading level. Levels range from 1 to 5 and will dictate the types of transactions you’re able to engage in.
Furthermore, you’ll need to maintain a minimum balance of $2,000 in your account at all times, per industry requirements. Additionally, purchasing a call option may mandate a margin account or line of credit to serve as security. Check with the brokerage firm to confirm minimum reserves and additional details regarding margin accounts.
Step 3: Start Trading Options
Now that you’re in the clear, you have to use your knowledge and judgment to make some critical choices that can boost or dent your wallet. Some important considerations:
How you think the stock will perform – Anticipating an increase in price? A call option is best as it allows you to turn a profit if the price surpasses the strike price within the window of time allotted by the option, and. In this case, you will be in the money. But if the market price drops below the strike price, you’ll be out of the money.
By contrast, if you already own shares and are expecting a dip in the price, you would purchase a put option. You’ll be in the money if the market price drops below the strike price, and out of the money if the market price ends up exceeding the strike price.
The length of the option – Stock options are only valid for a set period of time. Some options last for several days or months, while others span several years.
Optimal strike price – It’s difficult to determine where the stock price will end up, so you’ll have to make an educated guess regarding the strike price before purchasing an option.
Thinking the price of a share currently trading for $50 will increase to $75? Let’s assume you purchase a call option with a strike price below $75. (You want a call option that leaves a little wiggle room to account for the cost of the option). If the share price exceeds the strike price, you will be in the money or turn a profit.
Now assume you owned these shares and expected the share price to drop to $25? By purchasing a put option with a strike price that is above $25 and accounts for the cost of the option, you’ll be in the money if the price does drop below this point.
Bottom Line
Options trading is a sophisticated tool for seasoned investors, offering strategic depth to portfolio management. However, it’s not the sole method to mitigate risk or seek returns. Stock trading presents a more accessible alternative, with its direct approach and fewer entry barriers.
While options can leverage market movements and offer protection, they demand a solid grasp of market intricacies. In contrast, stock trading provides a straightforward path to investment growth. Choosing between them depends on your risk tolerance, investment goals, and willingness to explore market complexities.
Turn your passion for playing video games into a career by attending one of the top game design colleges in the country.
Game design is an in-demand industry, with new video games for gaming systems, tablets, and phones continually being developed and released. Here, we’re exploring 20 of the best gaming development programs you might want to consider.
What to Look for in a Game Design School
If you’re looking into colleges for video game design, you’ll quickly realize that not all programs are created equally. Some schools only offer a class or two in game design, while others go deep into the field, offering internships and hands-on experiences.
If you’re interested in attending a game design school, it’s important to research schools and programs prior to making your decision. Make sure to look into the specific type of degree you want (undergraduate degree or certificate, for example), the length and commitment of the program, what current and former students have to say about the program, the helpfulness of the faculty and staff, and more.
Luckily, we’ve done the work for you and have narrowed down the top colleges offering game design programs.
The Top 20 Best Colleges for Game Design
There are several video game design colleges and programs in the United States. Here, we’ve created a list starting with the most affordable game design colleges all the way up to those with higher tuition expenses.
1. Shawnee State University
Shawnee’s Game Design School has made it on The Princeton Review’s Top Undergraduate Schools for Game Design list for 13 consecutive years, and with such low tuition, it might be a great bargain. Located in Portsmouth, OH, you can elect to study Game Programming or Game & Simulation Arts.
• 1 year of tuition: In-state $9,621.52; Out-of-state $16,156
2. University of Silicon Valley
USV is available on-campus in the heart of Silicon Valley or 100% online. The university offers Bachelor of Arts degrees in both Game Design and Game Art, as well as a Bachelor of Science in Game Engineering. After graduating, students are qualified for roles including animator, modeler, game writer, computer programmer, and more.
• 1 year of tuition: $27,850 for both in-state and out-of-state students
3. Arizona State University
ASU’s Bachelor of Arts in Interdisciplinary Studies offers a concentration in Computer Gaming with three tracks to choose from: Programming, Art, or Education. Located in stunning Tempe, AZ, courses in the program include Introduction to Graphics and Game Development, Fundamentals of Game Art, Game Engine Architecture, and 3D Modeling and Texturing.
• 1 year of tuition: In-state $12,051; Out-of-state $32,193
4. University of Utah
The Utah Division of Games, located in Salt Lake City, is a college for game designing that combines art, humanities, social science, and computational research and practice to prepare students for careers in the field. Students can choose from multiple gaming bachelor’s degrees, a master’s degree, and even a minor in gaming. The Bachelor of Science in Games includes courses like Survey of Games, Ethics in Games, and Alternative Game Development.
• 1 year of tuition: In-state $9400; Out-of-state $31,104 💡 Quick Tip: Fund your education with a low-rate, no-fee SoFi private student loan that covers all school-certified costs.
5. University of Southern California
USC’s Interactive Media & Games program offers three undergraduate options: a BFA in Themed Entertainment, a BFA in Game Development and Interaction, and a BFA in Game Art. Located in sunny Los Angeles, the program also offers four graduate degrees and nine minors.
• 1 year of tuition: $33,320 for both in-state and out-of-state students
6. Laguna College of Art and Design
Laguna College of Art and Design Game Art program, located in Laguna Beach, CA, prepares students for employment in any studio or software environment. Students learn the fundamentals of storytelling at every phase of the creation process, how to use a workflow methodology, and how to solve problems in concept challenges.
• 1 year of tuition: $37,500 for both in-state and out-of-state students
7. Full Sail University
Full Sail’s Interactive Technology Bachelor of Science Completion Program in Winter Park, FL offers a Game Design concentration that includes high-level game design and production courses that prepare students to work in game studios after graduation. Recognized as a Top Game Designs Schools by The Princeton Review, the program offers multiple start dates throughout the year and has an accelerated schedule for students looking to finish early.
• 1 year of tuition: $38,750 for both in-state and out-of-state students
8. Drexel University
Drexel University in Philadelphia offers a Bachelor of Science in Game Design & Production, and is recognized as one of the country’s top undergraduate game design programs. Students learn skills like scripting and storytelling, computer programming, computer graphics, animation, motion capture, and more.
• 1 year of tuition: $38,862 for both in-state and out-of-state students
9. Bradley University
Bradley University in Peoria, IL offers both a BA and a BS in Game Design. During your studies, you’ll have the opportunity to intern for a design company, participate in competitions, and show your work at an annual exhibit.
• 1 year of tuition: $39,248 for both in-state and out-of-state students
10. Savannah College of Art and Design
SCAD’s Interactive Design and Game Development degrees offer locations in Atlanta and Savannah, GA with the option to study abroad in Lacoste, France. Students can study at any of the three locations each semester, with the option to switch locations during their time in the program. Courses in the program include Digital Communication, Visual Culture in Context: Pre-Modern Global Perspectives, Aesthetics, and Core Principles: Game Art.
• 1 year of tuition: $41,130 for both in-state and out-of-state students
11. Michigan State University
MSU offers a Game Design and Development Program, a Top 10 Ranked program by The Princeton Review, that was founded in 2005. Students can choose from a Bachelor of Arts in Games and Interactive Media, a Minor in Game Design and Development, or a Serious Games Graduate Certificate. All students get the opportunity to design prototypes and conduct research on the effects of gaming.
• 1 year of tuition: In-state $16,051; Out-of-state $43,435
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12. University of California – Irvine
The Bachelor of Science degree in Game Design & Interactive Media at UC Irvine includes coursework in game programming, game design and development, visual design, interactive storytelling, data science, and game studies. Students graduate the program well-prepared for a career as a designer, developer, and industry leader. Students also get access to well-respected industry mentors.
• 1 year of tuition: In-state $17.205.74; Out-of-state $32,574
13. Champlain College
Champlain’s Bachelor of Science in Game Programming provides hands-on experience, with students collaborating to create and complete game projects. Located in gorgeous Burlington, VT, Champlain was named a “Most Innovative School” by U.S. News & World Report in 2022. Upon graduation, students are well-prepared to work in gaming studios.
• 1 year of tuition: $47,400
14. Quinnipiac University
Level up your creativity with Quinnipiac University’s Game Design & Development Program. Ranked as one of The Princeton Review’s Top Game Design Programs, students can choose a concentration to focus on, including programming, technology, design process, art, game studies, and more. Located in Hamden, CT, the program also gives students the chance to collaborate with partners both within and outside the community.
• 1 year of tuition: $50,400
Recommended: Financial Benefits of Community College
15. Rochester Institute of Technology
The Game Design, Development, and Arts program at RIT has been rated one of the best programs in this field of study by many organizations, including U.S. News & World Report. Degree options include 3D Digital Design, Film & Animation, Illustration, New Media Interactive Development, and more.
• 1 year of tuition: $56,136 💡 Quick Tip: Need a private student loan to cover your school bills? Because approval for a private student loan is based on creditworthiness, a cosigner may help a student get loan approval and a lower rate.
16. Worcester Polytechnic Institute
The Interactive Media and Game Development (IMGD) program at WPI dives into different aspects of gaming design, including digital painting, 3D modeling, writing for games, game audio, artificial intelligence, and virtual reality. Located in Worcester, MA, the program is recognized as one of the oldest gaming programs in the country.
• 1 year of tuition: $57,960
17. New York University
New York University’s BFA in Game Design has three primary areas of study: Game Studies, Game Design, and Game Development. You can also choose from one the following Production Areas: Programming, Video Design, Audio Design, and Game Business. Though tuition here is a bit higher than at some of the other schools, you can pay for it with a federal or private student loan.
• 1 year of tuition: $60,438
18. Carnegie Mellon
The Game Design undergraduate program at Carnegie Mellon in Pittsburgh, PA will give you a solid foundation in game systems and mechanics design, interactive narrative and character development, visual and audio asset creation, game programming, interface design and user testing, and collaboration and the iterative design process.
• 1 year of tuition: $62,260
19. University of California – Santa Cruz
In USC Santa Cruz’s Bachelor of Science in Computer Science: Computer Game Design, you’ll learn about the construction and design of interactive computer games. In your final year of study, you’ll be immersed in an intensive year-long game project sequence.
• 1 year of tuition: In-state: $30,567; Out-of-state: $65,148
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20. Cornell University
Cornell, another of the best game design colleges located in Ithaca, NY, offers a minor in Game Design that includes classes like Intro to Computer Game Architecture, Advanced Computer Game Architecture, Analytics-Driven Game Design, Graphics and Art, the Psychology of Gaming, and Human-Computer Interaction.
• 1 year of tuition: $65,204
The Takeaway
With so many game design colleges available, it might be hard to make a decision. Factors to keep in mind include the type of program, the location, the faculty and staff, and the cost.
However, don’t let cost deter you from going to the school of your choice. To pay for school, you can look into federal student loans, scholarships, and grants.
If you’ve exhausted all federal student aid options, no-fee private student loans from SoFi can help you pay for school. The online application process is easy, and you can see rates and terms in just minutes. Repayment plans are flexible, so you can find an option that works for your financial plan and budget.
Cover up to 100% of school-certified costs including tuition, books, supplies, room and board, and transportation with a private student loan from SoFi.
FAQ
What’s the most affordable game design program?
Shawnee State University offers a nationally acclaimed game design program with low tuition. Tuition for in-state residents is $16,156 per year.
What’s the most expensive game design program?
Cornell University has one of the most expensive game design programs in the U.S. at over $65,000 per year.
How much does game design school cost?
Game design schools can range from $16,000 per year all the way up to more than $65,000 per year.
Photo credit: iStock/fizkes
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The VA home loan: Unbeatable benefits for veterans
For many who qualify, VA home loans are some of the best mortgages available.
Verify your VA loan eligibility. Start here
Backed by the U.S. Department of Veterans Affairs, VA loans are designed to help active-duty military personnel, veterans and certain other groups become homeowners at an affordable cost.
The VA loan asks for no down payment, requires no mortgage insurance, and has lenient rules about qualifying, among many other advantages.
Here’s everything you need to know about qualifying for and using a VA loan.
In this article (Skip to…)
Top 10 VA loan benefits
1. No down payment on a VA loan
Most home loan programs require you to make at least a small down payment to buy a home. The VA home loan is an exception.
Verify your VA loan eligibility. Start here
Rather than paying 5%, 10%, 20% or more of the home’s purchase price upfront in cash, with a VA loan you can finance up to 100% of the purchase price.
The VA loan is a true no-money-down home mortgage opportunity.
2. No mortgage insurance for VA loans
Typically, lenders require you to pay for mortgage insurance if you make a down payment that’s less than 20%.
This insurance — which is known as private mortgage insurance (PMI) for a conventional loan and a mortgage insurance premium (MIP) for an FHA loan — would protect the lender if you defaulted on your loan.
VA loans require neither a down payment nor mortgage insurance. That makes a VA-backed mortgage very affordable upfront and over time.
3. VA loans have a government guarantee
There’s a reason why the VA loan comes with such favorable terms.
The federal government guarantees these loans — meaning a portion of the loan amount will be repaid to the lender even if you’re unable to make monthly payments for whatever reason.
This guarantee encourages and enables private lenders to offer VA loans with exceptionally attractive terms.
4. You can shop for the best VA loan rates
VA loans are neither originated nor funded by the VA. They are not direct loans from the government. Furthermore, mortgage rates for VA loans are not set by the VA itself.
Instead, VA loans are offered by U.S. banks, savings-and-loans institutions, credit unions, and mortgage lenders — each of which sets its own VA loan rates and fees.
This means you can shop around and compare loan offers and still choose the VA loan that works best for your budget.
5. VA loans don’t allow a prepayment penalty
A VA loan won’t restrict your right to sell the property partway through your loan term.
There’s no prepayment penalty or early-exit fee no matter within what time frame you decide to sell your home.
Furthermore, there are no restrictions regarding a refinance of your VA loan.
You can refinance your existing VA loan into another VA loan via the agency’s Interest Rate Reduction Refinance Loan (IRRRL) program, or switch into a non-VA loan at any time.
6. VA mortgages come in many varieties
A VA loan can have a fixed rate or an adjustable rate. In addition, you can use a VA loan to buy a house, condo, new-built home, manufactured home, duplex, or other types of properties.
Or, it can be used for refinancing your existing mortgage, making repairs or improvements to your home, or making your home more energy-efficient.
The choice is yours. A VA-approved lender can help you decide.
Verify your VA loan eligibility. Start here
7. It’s easier to qualify for VA loans
Like all mortgage types, VA loans require specific documentation, an acceptable credit history, and sufficient income to make your monthly payments.
But, compared to other loan programs, VA loan guidelines tend to be more flexible. This is made possible because of the VA loan guarantee.
The Department of Veterans Affairs genuinely wants to make the loan process easier for military members, veterans, and qualifying military spouses to buy or refinance a home.
8. VA loan closing costs are lower
The VA limits the closing costs lenders can charge to VA loan applicants. This is another way that a VA loan can be more affordable than other types of loans.
Money saved on closing costs can be used for furniture, moving costs, home improvements, or anything else.
9. The VA offers funding fee flexibility
VA loans require a “funding fee,” an upfront cost based on your loan amount, your type of eligible service, your down payment size, and other factors.
Funding fees don’t need to be paid in cash, though. The VA allows the fee to be financed with the loan, so nothing is due at closing.
And, not all VA borrowers will pay it. VA funding fees are normally waived for veterans who receive VA disability compensation and for unmarried surviving spouses of veterans who died in service or as a result of a service-connected disability.
10. VA loans are assumable
Most VA loans are “assumable,” which means you can transfer your VA loan to a future home buyer if that person is also VA-eligible.
Assumable loans can be a huge benefit when you sell your home — especially in a rising mortgage rate environment.
If your home loan has today’s low rate and market rates rise in the future, the assumption features of your VA become even more valuable.
VA loan rates
The VA loan is viewed as one of the lowest-risk mortgage types available on the market.
Verify your VA loan eligibility. Start here
This safety allows banks to lend to veteran borrowers at lower interest rates.
Today’s VA loan rates*
Loan Type
Current Mortgage Rate
VA 30-year FRM
% (% APR)
Conventional 30-year FRM
% (% APR)
VA 15-year FRM
% (% APR)
Conventional 15-year FRM
% (% APR)
*Current rates provided daily by partners of the Mortgage Reports. See our loan assumptions here.
VA rates are more than 25 basis points (0.25%) lower than conventional rates on average, according to data collected by mortgage software company Ellie Mae.
Most loan programs require higher down payment and credit scores than the VA home loan. In the open market, a VA loan should carry a higher rate due to more lenient lending guidelines and higher perceived risk.
Yet the result of the Veterans Affairs efforts to keep veterans in their homes means lower risk for banks and lower borrowing costs for eligible veterans.
VA mortgage calculator
Eligibility
Am I eligible for a VA home loan?
Contrary to popular belief, VA loans are available not only to veterans, but also to other classes of military members.
Find and lock a low VA loan rate today. Start here
The list of eligible VA borrowers includes:
Active-duty service members
Members of the National Guard
Reservists
Surviving spouses of veterans
Cadets at the U.S. Military, Air Force or Coast Guard Academy
Midshipmen at the U.S. Naval Academy
Officers at the National Oceanic & Atmospheric Administration.
A minimum term of service is typically required.
Minimum service required for a VA mortgage
VA home loans are available to active-duty service members, veterans (unless dishonorably discharged), and in some cases, surviving family members.
To be eligible, you need to meet one of these service requirements:
You’ve served 181 days of active duty during peacetime
You’ve served 90 days of active duty during wartime
You’ve served six years in the Reserves or National Guard
Your spouse was killed in the line of duty and you have not remarried
Your eligibility for the VA home loan program never expires.
Veterans who earned their VA entitlement long ago are still using their benefit to buy homes.
The VA loan Certificate of Eligibility (COE)
What is a COE?
In order to show a mortgage company you are VA-eligible, you’ll need a Certificate of Eligibility (COE). Your lender can acquire one for you online, usually in a matter of seconds.
Verify your VA home loan eligibility. Start here
How to get your COE (Certificate of Eligibility)
Getting a Certificate of Eligibility (COE) is very easy in most cases. Simply have your lender order the COE through the VA’s automated system. Any VA-approved lender can do this.
Alternatively, you can order your certificate yourself through the VA benefits portal.
If the online system is unable to issue your COE, you’ll need to provide your DD-214 form to your lender or the VA.
Does a COE mean you are guaranteed a VA loan?
No, having a Certificate of Eligibility (COE) doesn’t guarantee a VA loan approval.
Your COE shows the lender you’re eligible for a VA loan, but no one is guaranteed VA loan approval.
You must still qualify for the loan based on VA mortgage guidelines. The guarantee part of the VA loan refers to the VA’s promise to the lender of repayment if the borrower defaults.
Qualifying for a VA mortgage
VA loan eligibility vs. qualification
Being eligible for VA home loan benefits based on your military status or affiliation doesn’t necessarily mean you’ll qualify for a VA loan.
You still have to qualify for a VA mortgage based on your credit, debt, and income.
Verify your VA loan eligibility. Start here
Minimum credit score for a VA loan
The VA has established no minimum credit score for a VA mortgage.
However, many VA mortgage lenders require minimum FICO scores of 620 or higher — so apply with many lenders if your credit score might be an issue.
Even VA lenders that allow lower credit scores don’t accept subprime credit.
VA underwriting guidelines state that applicants must have paid their obligations on time for at least the most recent 12 months to be considered satisfactory credit risks.
In addition, the VA usually requires a two-year waiting period following a Chapter 7 bankruptcy or foreclosure before it will insure a loan.
Borrowers in Chapter 13 must have made at least 12 on-time payments and secure the approval of the bankruptcy court.
Verify your VA loan home buying eligibility. Start here
VA loan debt-to-income ratios
The relationship of your debts and your income is called your debt-to-income ratio, or DTI.
VA underwriters divide your monthly debts (car payments, credit cards, and other accounts, plus your proposed housing expense) by your gross (before-tax) income to come up with your debt-to-income ratio.
For instance:
If your gross income is $4,000 per month
And your total monthly debt is $1,500 (including the new mortgage, property taxes and homeowners insurance, plus other debt payments)
Then your DTI is 37.5% (1500/4000=0.375)
A DTI over 41% means the lender has to apply additional formulas to see if you qualify under residual income guidelines.
VA residual income rules
VA underwriters perform additional calculations that can affect your mortgage approval.
Factoring in your estimated monthly utilities, your estimated taxes on income, and the area of the country in which you live, the VA arrives at a figure which represents your “true” costs of living.
It then subtracts that figure from your income to find your residual income (e.g. your money “left over” each month).
Think of the residual income calculation as a real-world simulation of your living expenses.
It is the VA’s best effort to ensure that military families have a stress-free homeownership experience.
Here is an example of how residual income works, assuming a family of four which is purchasing a 2,000 square-foot home on a $5,000 monthly income.
Future house payment, plus other debt payments: $2,500
Monthly estimated income taxes: $1,000
Monthly estimated utilities at $0.14 per square foot: $280
This leaves a residual income calculation of $1,220.
Now, compare that residual income to for a family of four:
Northeast Region: $1,025
Midwest Region: $1,003
South Region: $1,003
West Region: $1,117
The borrower in our example exceeds VA’s residual income standards in all parts of the country.
Therefore, despite the borrower’s debt-to-income ratio of 50%, the borrower could get approved for a VA loan.
Verify your VA loan eligibility. Start here
Qualifying for a VA loan with part-time income
You can qualify for this type of financing even if you have a part-time job or multiple jobs.
You must show a 2-year history of making consistent part-time income, and stability in the number of hours worked. The lender will make sure any income received appears stable. See our complete guide to getting a mortgage when you’re self-employed or work part-time.
VA funding fees and loan limits
About the VA funding fee
The VA charges an upfront fee to defray the costs of the program and make it sustainable for the future.
Veterans pay a lump sum that varies depending on the loan purpose and down payment amount.
The fee is normally wrapped into the loan. It does not add to the cash needed to close the loan.
Find out if you qualify for a VA loan. Start here
VA home purchase funding fees
Type of Military Service
Down Payment
Fee for First-Time Use
Fee for Subsequent Use
Active Duty, Reserves, and National Guard
None
2.3%
3.6%
5% or more
1.65%
1.65%
10% or more
1.4%
1.4%
VA cash-out refinance funding fees
Type of Military Service
Fee for First-Time Use
Fee for Subsequent Uses
Active Duty, Reserves, and National Guard
2.3%
3.6%
VA streamline refinances (IRRRL) & assumptions
Type of Military Service
Fee for First-Time Use
Fee for Subsequent Uses
Active Duty, Reserves, and National Guard
0.5%
0.5%
Manufactured home loans not permanently affixed
Type of Military Service
Fee for First-Time Use
Fee for Subsequent Uses
Active Duty, Reserves, and National Guard
1.0%
1.0%
VA loan limits in 2024
VA loan limits have been repealed, thanks to the Blue Water Navy Vietnam Veterans Act of 2019.
There is no maximum amount for which a home buyer can receive a VA loan, at least as far as the VA is concerned.
However, private lenders may set their own limits. So check with your lender if you are looking for a VA loan above local conforming loan limits.
Verify your VA loan eligibility. Start here
Eligible property types
Houses you can buy with a VA loan
VA mortgages are flexible about what types of property you can and can’t purchase. A VA loan can be used to buy a:
Detached house
Condo
New-built home
Manufactured home
Duplex, triplex or four-unit property
Find out if you qualify for a VA loan. Start here
You can also use a VA mortgage to refinance an existing loan for any of those types of properties.
VA loans and second homes
Federal regulations limit loans guaranteed by the Department of Veterans Affairs to “primary residences” only.
However, “primary residence” is defined as the home in which you live “most of the year.”
Therefore, if you own an out-of-state residence in which you live for more than six months of the year, this other home, whether it’s your vacation home or retirement property, becomes your official “primary residence.”
For this reason, VA loans are popular among aging military borrowers.
Buying a multi-unit home with a VA loan
VA loans allow you to buy a duplex, triplex, or four-plex with 100% financing. You must live in one of the units.
Buying a home with more than one unit can be challenging.
Mortgage lenders consider these properties riskier to finance than traditional, single-family residences, so you’ll need to be a stronger borrower.
VA underwriters must make sure you will have enough emergency savings, or cash reserves, after closing on your house. That’s to ensure you’ll have money to pay your mortgage even if a tenant fails to pay rent or moves out.
The minimum cash reserves needed after closing is six months of mortgage payments (covering principal, interest, taxes, and insurance – PITI).
Your lender will also want to know about previous landlord experience you’ve had, or any experience with property maintenance or renting.
If you don’t have any, you may be able to sidestep that issue by hiring a property management company. But that’s up to the individual lender.
Your lender will look at the income (or potential income) of the rental units, using either existing rental agreements or an appraiser’s opinion of what the units should fetch.
They’ll usually take 75% of that amount to offset your mortgage payment when calculating your monthly expenses.
VA loans and rental properties
You cannot use a VA loan to buy a rental property. You can, however, use a VA loan to refinance an existing rental home you once occupied as a primary home.
For home purchases, in order to obtain a VA loan, you must certify that you intend to occupy the home as your principal residence.
If the property is a duplex, triplex, or four-unit apartment building, you must occupy one of the units yourself. Then you can rent out the other units.
The exception to this rule is the VA’s Interest Rate Reduction Refinance Loan (IRRRL).
This loan, also known as the VA Streamline Refinance, can be used for refinancing an existing VA loan on a home where you currently live or where you used to live, but no longer do.
Check your VA IRRRL eligibility. Start here
Buying a condo with a VA loan
The VA maintains a list of approved condo projects within which you may purchase a unit with a VA loan.
At VA’s website, you can search for the thousands of approved condominium complexes across the U.S.
If you are VA-eligible and in the market for a condo, make sure the unit you’re interested in is approved.
As a buyer, you are probably not able to get the complex VA-approved. That’s up to the management company or homeowner’s association.
If a condo you like is not approved, you must use other financing like an FHA or conventional loan or find another property.
Note that the condo must meet FHA or conventional guidelines if you want to use those types of financing.
Veteran mortgage relief with the VA loan
The U.S. Department of Veterans Affairs, or VA, provides home retention assistance. The VA intervenes when a veteran is having trouble making home loan payments.
The VA works with loan servicers to offer loan options to the veteran, other than foreclosure.
Find out if you qualify for a VA loan. Start here
In fiscal year 2019, the VA made over 400,000 contact actions to reach borrowers and loan servicers. The intent was to work out a mutually agreeable repayment option for both parties.
More than 100,000 veteran homeowners avoided foreclosure in 2019 alone thanks to this effort.
The initiative has saved the taxpayer an estimated $2.6 billion. More importantly, vast numbers of veterans and military families got another chance at homeownership.
When NOT to use a VA loan
If you have good credit and 20% down
A primary advantage to VA home loans is the lack of mortgage insurance.
However, the VA guarantee does not come free of charge. Borrowers pay an upfront funding fee, which they usually choose to add to their loan amount.
The fee ranges from 1.4% to 3.6%, depending on the down payment percentage and whether the home buyer has previously used his or her VA mortgage eligibility. The most common fee is 2.3%.
Find out if you qualify for a VA loan. Start here
On a $200,000 purchase, a 2.3% fee equals $4,600.
However, buyers who choose a conventional mortgage and put 20% down get to avoid mortgage insurance and the upfront fee. For these military home buyers, the VA funding fee might be an unnecessary expense.
The exception: Mortgage applicants whose credit rating or income meets VA guidelines but not those of conventional mortgages may still opt for VA.
If you’re on the “CAIVRS” list
To qualify for a VA loan, you must prove you have made good on previous government-backed debts and that you have paid taxes.
The Credit Alert Verification Reporting System, or “CAIVRS,” is a database of consumers who have defaulted on government obligations. These individuals are not eligible for the VA home loan program.
If you have a non-veteran co-borrower
Veterans often apply to buy a home with a non-veteran who is not their spouse.
This is okay. However, it might not be their best choice.
As the veteran, your income must cover your half of the loan payment. The non-veteran’s income cannot be used to compensate for the veteran’s insufficient income.
Plus, when a non-veteran owns half the loan, the VA guarantees only half that amount. The lender will require a 12.5% down payment for the non-guaranteed portion.
The Conventional 97 mortgage, on the other hand, allows down payments as low as 3%.
Another low-down-payment mortgage option is the FHA home loan, for which 3.5% down is acceptable.
The USDA home loan also requires zero down payment and offers similar rates to VA loans. However, the property must be within USDA-eligible areas.
If you plan to borrow with a non-veteran, one of these loan types might be your better choice.
Explore your mortgage options. Start here
If you apply with a credit-challenged spouse
In states with community property laws, VA lenders must consider the credit rating and financial obligations of your spouse. This rule applies even if he or she will not be on the home’s title or even on the mortgage.
Such states are as follows.
Arizona
California
Idaho
Louisiana
Nevada
New Mexico
Texas
Washington
Wisconsin
A spouse with less-than-perfect credit or who owes alimony, child support, or other maintenance can make your VA approval more challenging.
Apply for a conventional loan if you qualify for the mortgage by yourself. The spouse’s financial history and status need not be considered if he or she is not on the loan application.
Verify your VA loan home buying eligibility. Start here
If you want to buy a vacation home or investment property
The purpose of VA financing is to help veterans and active-duty service members buy and live in their own home. This loan is not meant to build real estate portfolios.
These loans are for primary residences only, so if you want a ski cabin or rental, you’ll have to get a conventional loan.
If you want to purchase a high-end home
Starting January 2020, there are no limits to the size of mortgage a lender can approve.
However, lenders may establish their own limits for VA loans, so check with your lender before applying for a large VA loan.
Spouses and the VA mortgage program
What spouses are eligible for a VA loan?
What if the service member passes away before he or she uses the benefit? Eligibility passes to an unremarried spouse, in many cases.
Find and lock a low VA loan rate today. Start here
For the surviving spouse to be eligible, the deceased service member must have:
Died in the line of duty
Passed away as a result of a service-connected disability
Been missing in action, or a prisoner of war, for at least 90 days
Been a totally disabled veteran for at least 10 years prior to death, and died from any cause
Also eligible are remarried spouses who married after the age of 57, on or after December 16, 2003.
In these cases, the surviving spouse can use VA loan eligibility to buy a home with zero down payment, just as the veteran would have.
VA loan benefits for surviving spouses
Surviving spouses have an additional VA loan benefit, however. They are exempt from the VA funding fee. As a result, their loan balance and monthly payment will be lower.
Surviving spouses are also eligible for a VA streamline refinance when they meet the following guidelines.
The surviving spouse was married to the veteran at the time of death
The surviving spouse was on the original VA loan
VA streamline refinancing is typically not available when the deceased veteran was the only applicant on the original VA loan, even if he or she got married after buying the home.
In this case, the surviving spouse would need to qualify for a non-VA refinance, or a VA cash-out loan.
A cash-out mortgage through VA requires the military spouse to meet home purchase eligibility requirements.
If this is the case, the surviving spouse can tap into the home’s equity to raise cash for any purpose, or even pay off an FHA or conventional loan to eliminate mortgage insurance.
Qualifying if you receive (or pay) child support or alimony
Buying a home after a divorce is no easy task.
If, prior to your divorce, you lived in a two-income household, you now have less spending power and a reduced monthly income for purposes of your VA home loan application.
With less income, it can be harder to meet both the VA Home Loan Guaranty’s debt-to-income (DTI) guidelines and the VA residual income requirement for your area.
Receiving alimony or child support can counteract a loss of income.
Mortgage lenders will not require you to provide information about your divorce agreement’s alimony or child support terms, but if you’re willing to disclose, it can count toward qualifying for a home loan.
Different VA-approved lenders will treat alimony and child support income differently.
Typically, you will be asked to provide a copy of your divorce settlement or other court paperwork to support the alimony and child support payments.
Lenders will then want to see that the payments are stable, reliable, and likely to continue for another 36 months, at least.
You may also be asked to show proof that alimony and child support payments have been made in the past reliably, so that the lender may use the income as part of your VA loan application.
If you are the payor of alimony and child support payments, your debt-to-income ratio can be harmed.
Not only might you be losing the second income of your dual-income households, but you’re making additional payments that count against your outflows.
VA mortgage lenders make careful calculations with respect to such payments.
You can still get approved for a VA loan while making such payments — it’s just more difficult to show sufficient monthly income.
VA loan assumption
What is VA loan assumption?
One benefit for home buyers is that VA loans are assumable. When you assume a mortgage loan, you take over the current homeowner’s monthly payment.
Verify your VA loan home buying eligibility. Start here
That could be a big advantage if mortgage rates have risen since the original owner purchased the home. The buyer would be able to acquire a low-rate, affordable loan — and it could make it easier for the seller to find a willing buyer in a tough market.
VA loan assumption savings
Buying a home via an assumable mortgage loan is even more appealing when interest rates are on the rise.
For example:
Say a seller-financed $200,000 for their home in 2013 at an interest rate of 3.25% on a 30-year fixed loan
Using this scenario, their principal and interest payment would be $898 per month
Let’s assume current 30-year fixed rates averaged 4.10%
If you financed $200,000 at 4.10% for a 30-year loan term, your monthly principal and interest payment would be $966 per month
Additionally, because the seller has already paid four years into the loan term, they’ve already paid nearly $25,000 in interest on the loan.
By assuming the loan, you would save $34,560 over the 30-year loan due to the difference in interest rates. You would also save roughly $25,000 thanks to the interest already paid by the sellers.
That comes out to a total savings of almost $60,000!
How to assume (take on) a VA loan
There are currently two ways to assume a VA loan.
The new buyer is a qualified veteran who “substitutes” his or her VA eligibility for the eligibility of the seller
The new home buyer qualifies through VA standards for the mortgage payment. This is the safest method for the seller as it allows the loan to be assumed knowing that the new buyer is responsible for the loan, and the seller is no longer responsible for the loan
The lender and/or the VA needs to approve a loan assumption.
Loans serviced by a lender with automatic authority may process assumptions without sending them to a VA Regional Loan Center.
For lenders without automatic authority, the loan must be sent to the appropriate VA Regional Loan Center for approval. This loan process will typically take several weeks.
When VA loans are assumed, it’s the servicer’s responsibility to make sure the homeowner who assumes the property meets both VA and lender requirements.
VA loan assumption requirements
For a VA mortgage assumption to take place, the following conditions must be met:
The existing loan must be current. If not, any past due amounts must be paid at or before closing
The buyer must qualify based on VA credit and income standards
The buyer must assume all mortgage obligations, including repayment to the VA if the loan goes into default
The original owner or new owner must pay a funding fee of 0.5% of the existing principal loan balance
A processing fee must be paid in advance, including a reasonable estimate for the cost of the credit report
Find out if you qualify for a VA loan. Start here
Finding assumable VA loans
There are several ways for home buyers to find an assumable VA loan.
Believe it or not, print media is still alive and well. Some home sellers advertise their assumable home for sale in the newspaper, or in a local real estate publication.
There are a number of online resources for finding assumable mortgage loans.
Websites like TakeList.com and Zumption.com give homeowners a way to showcase their properties to home buyers looking to assume a loan.
With the help of the Multiple Listing Service (MLS), real estate agents remain a great resource for home buyers.
This applies to home buyers specifically searching for assumable VA loans as well.
How do I apply for a VA loan?
You can easily and quickly have a lender pull your certificate of eligibility (COE) to make sure you’re able to get a VA loan.
Most mortgage lenders offer VA home loans. So you’re free to shop and compare rates with just about any company that catches your eye.
Getting a VA loan for your new home is similar in many ways to securing any other purchase loan. Once you find an ideal home in your price range, you make a purchase offer, and then undergo VA appraisal and underwriting.
VA appraisal ensures that the home meets its minimum property requirements (MPRs) and is structurally sound and safe for occupancy.
What’s more, VA-specific mortgage lenders are actually some of the highest-rated (and lowest-priced) on the market. Here are a few we’d recommend checking out.
Time to make a move? Let us find the right mortgage for you
Retired couples who are Medicare beneficiaries could need as much as $413,000 saved to cover medical expenses in the latter stages of life, an increase over the previous year’s estimate of $383,000. This is according to new findings from the Employee Benefit Research Institute (EBRI).
The figure is the “predicted savings target for Medicare beneficiaries to cover premiums, deductibles, and prescription drugs in retirement,” EBRI explained.
The estimates break down differently for single men, women and couples who are part of Medicare supplemental insurance plans, and the figures aim to offer retirees “a 90% chance of meeting their health care spending needs in retirement.”
For single men, the savings figure is $184,000. For single women, the estimated figure is $217,000, while couples in supplemental insurance plans would need an estimated $351,000.
“Health care costs in retirement can be considerable and may not necessarily be a salient issue for workers,” said Jake Spiegel, research associate for health and wealth benefits Research at EBRI. “To project how much Medicare beneficiaries may need to save to have a reasonable chance of meeting their health care spending requirements in retirement, EBRI built a simulation model allowing for uncertainty due to mortality and rates of return on assets in retirement.”
The model takes recent changes to Medicare Part D into account, enacted as part of the 2022 Inflation Reduction Act passed by Congress and signed into law by President Joe Biden.
The EBRI model “tests varying assumptions about Medicare Advantage and [supplemental insurance] plans that Medicare beneficiaries may purchase,” Spiegel explained. “The output of this updated simulation model is the basis of this new report.”
The $413,000 estimate is an “extreme case,” the results explain. A couple would need to have “particularly high prescription drug expenditures” for that savings figure to adequately have a 90% chance of meeting health care spending needs during retirement.
The study also found that those enrolled in Medicare Advantage plans — private plans that “provide all of your Medicare Part A (Hospital Insurance) and Medicare Part B (Medical Insurance) coverage” and that are separate from supplemental plans — have “generally lower savings targets” than those not enrolled in such plans.
“The results from EBRI’s projection model indicate that basic health care costs incurred by Medicare beneficiaries are high,” Spiegel added. “While the savings targets tend to be lower for Medicare Advantage enrollees relative to Medigap enrollees, there are important limitations to take into account.”
A recent survey found that nearly 25% of adults have no retirement plan besides Social Security, a benefit program that accounts for many older Americans’ primary source of cash flow in retirement. Social Security benefits rose in 2024 by 3.4%, but seniors continue to express concern over their ability to make ends meet.
Let’s discuss the proper way to account for inflation in retirement and FIRE planning.
I lurk in some online personal finance forums, and what I see scares me. I see “the blind leading the blind” discussing how to account for inflation as part of your retirement or financial independence plan.
These mistakes can be gut-wrenching. If you double-count inflation, you’ll assume a worse-than-real future and mistakenly believe retirement is impossible. But if you improperly discount inflation, you’ll assume a better-than-real future and torpedo your retirement with false hopes.
We’re going to fix that today.
What’s the Problem in the First Place?
The problem is that it’s challenging to understand if/when/how to apply inflation. It’s entirely understandable. Inflation is a weird phenomenon and the math isn’t intuitive.
Should you inflate your current salary into the future? What about your current spending? What about investment returns? You’ve probably heard of the 4% Rule; but how does inflation affect its usage?
All great questions. We’ll answer them all today.
The True World vs. The Convenient World
I’ve heard intelligent people tackle this concept before. It’s tough. Lots of numbers are involved. There are mysterious rules about when to apply those numbers and when not to. My friends Cody Garrett and Brad Barrett expertly tackled this topic on a recent episode of ChooseFI. :
As I listened to Cody and Brad, I thought: a few visual aids and analogies might help here.
My preferred analogy is what I call “The True World” vs. “The Convenient World.”
“The True World” involves numbers as they actuallyexist in our society and economy.
“The Convenient World” involves shortcuts that financial experts frequently use.
I’ll explain both worlds below.
Good news: you can do math in either world and get correct answers for your life. Hooray! This is wonderful. It shows the power of smart mathematics.
Bad news: you cannot flip-flop between worlds. You must do all your math in “The True World” or do all your math in “The Convenient World.”
The problems I see every week arise when DIYers flip-flop between worlds. So I say again: you cannot flip-flop between worlds!
Let’s describe these worlds.
The True World
Let’s talk about The True World a.k.a. our actual society and economy.
Inflation: inflation exists in the True World, typically varying between 2% and 4% per year. We don’t know what future inflation will look like. But it’s reasonable to use a benchmark like 3% per year.
Stock returns: stock returns vary in the True World and can do so by significant amounts. Still, a pattern emerges when we zoom out to large time scales (20+ years). On average, a diversified stock portfolio has returned ~10% per year over long periods. It’s reasonable to use that 10% benchmark for the future. $100 this year turns into $110 next year.
Bond returns: bond returns also vary in the True World, though typically by smaller amounts than stocks. Over the past 100 years, intermediate-term, high-grade bonds have returned ~5% per year. It’s reasonable to use that 5% benchmark for the future. $100 this year turns into $105 next year.
In the three bullets above, I made an interesting assumption: that the future will closely resemble the past. You’re allowed to disagree with me and say, for example, that you want to assume inflation will be 4% ongoing and stock returns will be 8% ongoing. That’s fine.
The critical point is that all your numbers occur here in the True World. Inflation is above zero. Stocks and bond returns are measured using the actual amount of dollars. When we combine these factors, we conclude:
Your future income will be higher than your current one, increasing with inflation.
Your future raises will be greater than current, increasing with inflation
Your future spending will be higher than current, increasing with inflation.
Your future annual savings will be higher than current, increasing with inflation.
Your future nest egg will grow by some mix of true-world return percentages (assuming you build a diversified portfolio).
Keep those four components in mind: income, raises, savings & spending, and investment growth.
If you do all of your future planning using “True World” numbers, your analysis results will show reality as it is. That’s the goal.
The Convenient World
In the True World, as we’ve seen, it seems everything gets adjusted up by inflation. Lame! And also a bit tedious. Can’t we just do a mathematical trick to remove inflation from the equation entirely?
Yes. That’s exactly right. Some intelligent people wanted to make The True World more convenient for us. We’re here today (discussing a confusing financial planning topic) because of that desire for convenience.
…which, in my opinion, is a great idea! Unfortunately, those good intentions paved the road to our present confusing situation. Those intelligent people said,
“Three of our four main components (income, raises, spending & saving) are adjusted by annual inflation. To make the math easier, let’s remove inflation. No more adjustments! But to even out all facets of the equation, we must also decrease the investment growth by the inflation rate.”
The Convenient World contains no inflation! Here in the Convenient World, our four components are:
Your future income will equal your current income (assuming no merit-based raises).
There are no raises (at least, no “cost of living” or “COLA” raises)
Your future annual spending & saving will equal your current values.
Your investments will grow by a mix of true-world return percentages minus the annual inflation rate.
There’s no inflation in any of the four factors. While we’ve decreased our future spending needs, we also decrease the amount we save in the future and the rate at which our investments grow. Everything is a bit muted in The Convenient World.
But because we’ve discounted inflation in both positive ways (less future spending) and negative ways (less investment growth), you can do future planning using these “Convenient World” numbers and your results will show reality as it is.
Don’t Believe Me?
“But Jesse! How can the math work if we remove inflation in retirement and FIRE planning?! We’re ignoring a very real phenomenon!”
Trust me. Trust the math. Take a look at this simple spreadsheet.
The True World tab uses true world data. The Convenient World tab removes inflation entirely as I’ve described above.
Both tabs yield the same exact retirement savings results (Column I).
What About “The 4% Rule?”
The famous 4% rule throws an important question at us.
As my 4% rule explainer article details, the 4% rule builds inflation into its math. The creators of the 4% rule told us, “Hey future retiree – don’t you worry about inflation in retirement, we’ve already built it into our mathematical construct. All you need to worry about is hitting your 4% or 25x nest egg goal at your retirement date.”
What’s that sound like? What world washes inflation away? The Convenient World!
Now, the 4% Rule applies starting Day 1 of Retirement and extends until the day you meet Charlie Munger (RIP). That stretch of time is covered by the 4% rule (or whatever retirement rule/simulation you choose to utilize).
How should you get from today to Day 1 of Retirement? I recommend continuing to do all of your math in The Convenient World. Remove inflation from your numbers altogether.
Can you mix and match? While dangerous, the answer is technically yes!
To get from Today to Your Retirement Date, you can either:
Do all your math in The Convenient World, where both your future annual spending AND your future nest egg need will be muted values, but the ratio of those two will be 4% or 25x.
Do all your math in The True World, where both your future annual spending AND your future nest egg will reflect reality, and the ratio of those two will be 4% or 25x.
You can technically use True World math to get from Today to Your Retirement Date, and then let the 4% Rule (which is Convenient World math) take over from there.
But you CANNOT mix-and-match True World and Convenient World math when determining how to get from Today to Your Retirement Date.
In this example, both True and Convenient math get us to a place we can start using the 4% Rule.
But – Those Future Nest Egg Amounts Are Different?!
We’re sitting here in 2024. The True World tells us we’ll need $3.75M to retire in 2040. The Convenient World tells us we’ll need $1.875M. Those two numbers are vastly different…so which one is right?
The way to think about that is:
We’ll need $1.875M to retire as measured in 2024 dollars
We’ll need $3.75M to retire as measured in 2040 dollars
Either way, the most important takeaway from these types of planning analyses is to understand what we need to do right nowin 2024 to hit these future goals. Then we can revisit in 2025, 2026, etc.
Thankfully, both True and Convenient math will inform us precisely what we need to do here in 2024. Both methods would tell us, for example, “You need to save $30,000 in 2024 to stay on track for your retirement goal.”
What About “Real” vs. “Nominal” Returns
You might have heard of “real returns” and “nominal returns” before. I use those terms regularly here on The Best Interest, but I’ve intentionally excluded them so far in our discussion of inflation in retirement and FIRE planning.
The reason is that “real returns” confuses my analogy of “The True World.” Ugh.
Investment professionals use the term “nominal returns” to describe the actual dollar amounts that investments are increasing/decreasing by. If $100 turns into $110, the nominal return is 10%. In other words, nominal returns exist in The True World.
Investment pros use “real returns” to describe whether investments increase your purchasing power. In other words, have the investments outperformed inflation? If $100 turns into $110 but there was also 4% inflation, the real return is ~5.77%. “Real returns” exist in The Convenient World.
Yes, it’s confusing. You’ve been warned. Good luck.
Lessons and Takeaways
What have we learned?
Inflation in retirement and FIRE planning is a touchy topic. It’s not intuitive or easy. In fact, it requires great attention to detail.
You can use True World numbers and get all the answers you need.
You can use Convenient World math that excludes inflation, and you’ll also get the answers you need.
I recommend against mixing and matching. That said, if you’re very comfortable with the math, you can mix-and-match and end up fine.
You don’t want to mess this up. Misapplying inflation (a ~3% annual mistake) compounded over decades will lead you to a dark place.
Talk to an expert if you need to. CFP financial planners know how to handle this. Modern financial planning software takes care of the math for you.
Go get ’em!
PS: Here’s a straightforward financial independence and 4% rule calculator where you can input your own data.
PPS – you’ll notice my calculator does all its math in The Convenient World!
Thank you for reading! If you enjoyed this article, join 7500+ subscribers who read my 2-minute weekly email, where I send you links to the smartest financial content I find online every week.
-Jesse
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AI’s impact on the job market and society is a topic of much debate. However, its potential to assist businesses in making informed decisions is undeniable. Artificial intelligence (AI) has permeated various aspects of our lives, sparking discussions about its possibilities and challenges. Will we witness the realization of AI’s capabilities in the upcoming year? SAS, a frontrunner in AI and analytics, has enlisted the insights of executives and experts from across the organization to forecast trends and pivotal developments in AI for 2024. Here are some of the forecasts they have put forward.
Generative AI will augment (not replace) a comprehensive AI strategy
SAS, with a recent commitment of $1 billion to AI-powered industry solutions, emphasizes the growing significance of generative AI in organizational strategies. In 2024, organizations will shift towards integrating this technology to complement industry-specific AI strategies.
In banking, simulated data for stress testing and scenario analysis will help predict risks and prevent losses. In health care, that means the generation of individualized treatment plans. In manufacturing, generative AI can simulate production to identify improvements in quality, reliability, maintenance, energy efficiency and yield.
Bryan Harris, Chief Technology Officer, SAS
AI will create jobs
Although introducing new AI technologies in 2024 and beyond may lead to temporary disruptions in the job market, it will also ignite the creation of numerous new jobs and roles, thereby contributing to economic expansion.
In 2023, there was a lot of worry about the jobs that AI might eliminate. The conversation in 2024 will focus instead on the jobs AI will create. An obvious example is prompt engineering, which links a model’s potential with its real-world application. AI helps workers at all skill levels and roles to be more effective and efficient.
Udo Sglavo, Vice President of Advanced Analytics SAS
AI will enhance responsible marketing
While AI holds the potential for optimizing marketing and advertising initiatives, it is essential to recognize that biased data and models can yield skewed outcomes.
As marketers, we must consciously practice responsible marketing. Facets of this are awareness of the fallibility of AI and alertness to possible bias creeping in. In SAS Marketing, we are implementing model cards that are like an ingredient list, but for AI. Whether you create or apply AI, you are responsible for its impact. That’s why all marketers, regardless of technical know-how, can review the model cards, validate that their algorithms are effective and fair, and adjust as needed.
Jennifer Chase, Chief Marketing Officer, SAS
Financial firms will embrace AI amid a Dark Age of Fraud
Even as consumers show increased vigilance against fraud, fraudsters use generative AI and deepfake technology to refine their multitrillion-dollar trade. Phishing messages are becoming more sophisticated, and imitation websites appear remarkably authentic. With simple online tools, a criminal can replicate a voice after just a few seconds of audio.
We are entering the Dark Age of Fraud, where banks and credit unions will scramble to make up for lost time in AI adoption – incentivized, no doubt, by regulatory shifts forcing financial firms to assume greater liability for soaring APP [authorized push payment] scams and other frauds.
Stu Bradley, Senior Vice President of Risk, Fraud and Compliance Solutions, SAS
Shadow AI will challenge CIOs
CIOs previously faced challenges with ‘shadow IT’ and will now encounter ‘shadow AI’ – solutions utilized by or developed within an organization without official approval or monitoring by IT.
Well-intentioned employees will continue to use generative AI tools to increase productivity. And CIOs will wrestle daily with how much to embrace these generative AI tools and what guardrails should be put in place to safeguard their organizations from associated risks.
Jay Upchurch, Chief Information Officer, SAS
Multimodal AI and AI simulation will reach new frontiers
The next step in generative AI is the combination of text, images, and audio into one model. This is called multimodal AI, which allows for the simultaneous processing of diverse inputs.
An example of this will be the generation of 3D objects, environments and spatial data. This will have applications in augmented reality [AR], virtual reality [VR], and the simulation of complex physical systems such as digital twins.
Marinela Profi, AI/Generative AI Strategy Advisor, SAS
Digital-twin adoption will accelerate
Organizations can refine operations, enhance product quality, boost safety measures, improve reliability, and decrease emissions through digital twins.
Technologies like AI and IoT [Internet of Things] analytics drive important sectors of the economy, including manufacturing, energy and government. Workers on the factory floor and in the executive suite use these technologies to transform huge volumes of data into better, faster decisions. In 2024, the adoption of AI and IoT analytics will accelerate through broader use of digital-twin technologies, which analyze real-time sensor and operational data and create duplicates of complex systems like factories, smart cities and energy grids.
Jason Mann, Vice President of IoT, SAS
Insurers will confront climate risk, aided by AI
After years of waiting, climate change has evolved from a potential threat to a real and urgent danger. The global insurance industry faced more than $130 billion in losses from natural disasters in 2022, putting immense pressure on insurers worldwide. In the United States, insurers face scrutiny for increasing premiums and pulling out of heavily affected states like California and Florida, leaving millions of customers in a difficult position.
To survive this crisis, insurers will increasingly adopt AI to tap the potential of their immense data stores to shore up liquidity and be competitive. Beyond the gains they realize in dynamic premium pricing and risk assessment, AI will help them automate and enhance claims processing, fraud detection, customer service and more.
Troy Haines, Senior Vice President of Risk Research and Quantitative Solutions, SAS
AI importance will grow in government
AI will soon have an impact on government workforces. Governments struggle to attract and keep AI experts because of their high salaries, but they will actively seek out this talent to support regulatory efforts.
And like enterprises, governments will also increasingly turn to AI and analytics to boost productivity, automate menial tasks and mitigate that talent shortage.
Reggie Townsend, Vice President of the SAS Data Ethics Practice
Generative AI will bolster patient care
In 2024, organizations will continue to advance health and enhance patient and member experiences by developing AI-powered tools for personalized medicine. These tools will include patient-specific avatars for clinical trials and the generation of individualized treatment plans.
Additionally, we will see the emergence of generative AI-based systems for clinical decision support, delivering real-time guidance to payers, providers and pharmaceutical organizations.
Steve Kearney, Global Medical Director, SAS
Deliberate AI deployment will make or break insurers
In 2024, a top 100 global insurer will face closure due to prematurely implementing generative AI. Insurers are rapidly introducing autonomous systems without customizing them to their business models. They aim to use AI for expedited claims processing to counteract recent poor business performance. However, following layoffs in 2023, the remaining workforce will need more support to oversee AI’s ethical and widespread implementation.
The myth of AI as a cure-all will trigger tens of thousands of faulty business decisions that will lead to a corporate collapse, which may irreparably damage consumer and regulator trust.
Franklin Manchester, Global Insurance Strategic Advisor, SAS
Public health will get an AI boost from academia
The COVID-19 pandemic has made it evident that safeguarding our population will necessitate exceptional technology and collaboration. Public health embraces technological advancements like never before.
Whether overdoses or flu surveillance, using data to anticipate public health interventions is essential. Forecasting and modeling are rapidly becoming the cornerstone of public health work, but the government needs help. Enter academia. We will see an increase in academic researchers carrying out AI-driven modeling and forecasting on behalf of the government.
Dr. Meghan Schaeffer, National Public Health Advisor and Epidemiologist, SAS
At SAS Innovate, April 16-19, 2024, in Las Vegas, you have the opportunity to discuss with SAS executives, gain insights into their forecasts, and delve into the newest developments in AI and analytics. Secure your spot to receive updates on the conference and take advantage of early-bird pricing.
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Mihaela Lica Butler is senior partner at Pamil Visions PR. She is a widely cited authority on public relations issues, with an experience of over 25 years in online PR, marketing, and SEO.She covers startups, online marketing, social media, SEO, and other topics of interest for Realty Biz News.
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In the digital age, the concept of home is being reimagined by the advent of smart technology, transforming everyday living spaces into hubs of convenience, comfort and entertainment. Never has this been so clear as when you take even a cursory tour of the HGTV Smart Home 2023. If you need further evidence of just how expansive this industry is becoming, a study by Grand View Research, Inc. determined that the home automation industry will reach a staggering $444.98 billion by 2030.
Smart home technology, once fodder for dystopian storylines on TV, has evolved into a widely accepted seamless integration of devices and systems that streamline tasks, enhance security and personalize our environment. From the moment you wake to the soft glow of a sunrise simulation to the reassuring click of a smart lock securing your home at night, these intelligent systems work collaboratively to simplify routines, conserve resources and provide peace of mind. Smart home devices not only respond to our immediate commands but also anticipate our needs, learn our preferences and adapt to our lifestyles, offering a bespoke living experience that was once the stuff of science fiction.
Image Source: HGTV
Noteworthy tech in the HGTV Smart Home 2023
Each year, HGTV builds a new, technologically advanced home in a different location within the United States. The contest is typically run as a sweepstakes, where viewers can enter for a chance to win the annual smart home. Entries are usually accepted online through the HGTV website or via mail. The main prize is, of course, the HGTV Smart Home itself, which includes the home, all of its furnishings and the latest home technology. In addition to the home, there are often other prizes, like cash awards or vehicles.
Coolest devices in the 2023 HGTV Smart Home
Laid out below are just a few of the most highly sought-after pieces of smart home tech in this year’s HGTV Smart Home 2023 and their less expensive counterparts.
GE Profile Kitchen hub
The GE Profile Kitchen Hub is a unique and high-tech kitchen appliance from General Electric. It’s designed to serve multiple functions and is geared towards making the kitchen experience more interactive and connected.
Interactive screen: The GE Profile Kitchen Hub features a large touchscreen display that can be used to access recipes, watch videos, control smart home devices and more.
Vent hood: The screen is built into a vent hood, allowing it to sit above your range or cooktop. This design not only provides essential ventilation but also offers a central view for following recipes or watching videos as you cook.
Cameras: The device includes front-facing and downward-facing cameras. The front-facing camera can be used for video calls, while the downward-facing camera is intended to capture your cooking, which can be useful for sharing your culinary adventures on social media or with family.
Integrated apps: The Kitchen Hub comes with a suite of applications designed for the kitchen. These can include recipe apps, music and video streaming services and other smart home integrations.
Connectivity: Being a smart device, the Kitchen Hub connects to your home’s Wi-Fi network. This allows it to pull up recipes, stream content and interact with other smart devices in your home.
U+ Connect: This is GE Appliances’ smart platform that allows various devices to connect and communicate. For example, if you have a GE oven, the Kitchen Hub can interact with it, setting temperatures, timers and more.
Not looking to shell out nearly $1,200 for this type of tech? Consider an Alexa. While not as advanced as the Kitchen Hub, it is still a solid virtual assistant option for the kitchen.
DAKboard Wall Display v2 Plus
DAKboard is a digital wall calendar that integrates with various online calendar services to display your events, tasks, weather and other custom information. The DAKboard Wall Display v2 Plus is one of their products, designed to be a versatile, visually appealing display for personal and professional environments.
Screen: The Wall Display v2 Plus includes a high-resolution screen designed to make texts and images clear and easy to read from a distance.
Customization: DAKboard is known for its highly customizable displays. Users can choose different layouts, fonts and color themes to match their preferences or interior design.
Connectivity: The device connects to Wi-Fi to sync with various online services like Google Calendar, Apple Calendar, Microsoft Outlook and others.
Photo display: Besides showing calendar and weather information, DAKboard devices can cycle through personal photos or artwork, making them a dynamic alternative to traditional picture frames.
Integration: DAKboard devices support integration with various third-party services for weather, to-do lists, news and more.
While the Dakboard Wall Display v2 Plus will run you close to $500, the Skylight Calendar is a solid replacement for around to $200 less.
Image Source: Samsung
Samsung AirDresser Grand
The Samsung AirDresser is an in-home garment refreshing system, which uses air and steam to clean and deodorize clothing. It is part of a new category of home appliances intended to reduce the frequency of traditional washing and dry cleaning.
Jet air and air hangers: The system blasts air to loosen and remove dust from inside and outside your clothes.
Steam cleaning: It uses steam to sanitize clothing, removing bacteria, viruses and allergens.
Deodorization filter: The filter captures and reduces odors, leaving clothes smelling fresh.
Gentle drying: Clothes are dried at a low temperature to reduce the risk of shrinkage and heat damage.
Smart control: Integration with Samsung’s SmartThings ecosystem to monitor and control the device remotely through a smartphone app.
Self-cleaning: An internal system helps to maintain the device by removing scale and residue.
Wrinkle care: The AirDresser can smooth out wrinkles without the need for ironing.
Capacity and design: The AirDresser Grand offers a larger capacity to accommodate more items of clothing and potentially an updated design or premium finish.
Not nearly as fancy as the $1,100 AirDresser Grand, a handheld steamer, like the Conair Turbo EstremeSteam is a great option for quick sanitization and keeping clothes wrinkle-free with ease.
SimpliSafe Wireless Home Security System
SimpliSafe is a company that offers a variety of home security products and services, with an emphasis on ease of installation and use. Their systems are known for being wireless and user-friendly. These systems are typically marketed toward homeowners and renters looking for a quick, easy and effective DIY security solution.
DIY installation: SimpliSafe systems are designed for easy setup without the need for professional installation. The devices can be placed on shelves or adhered to walls without drilling.
Variety of packages: SimpliSafe provides different equipment packages to suit various home sizes and security needs. You can start with a basic set and expand with additional sensors and accessories as needed.
Components: A typical SimpliSafe kit includes a base station, which is the central hub of the system, wireless door and window sensors, motion detectors and a keypad. Additional components might include glass break sensors, smoke detectors, carbon monoxide detectors and panic buttons.
No contract monitoring: SimpliSafe offers optional professional monitoring services on a month-to-month basis, without the need for long-term contracts. This professional monitoring can dispatch emergency services in case of a break-in, fire or other incidents.
Smartphone control: SimpliSafe has an app that allows you to arm and disarm your system, receive alerts and monitor your home from anywhere.
Integration: SimpliSafe systems can integrate with smart home devices and platforms, like Amazon Alexa and Google Assistant, allowing for voice control and other smart home automation.
SimpliCam: They offer an indoor camera called SimpliCam, which can be used to keep an eye on your home while you’re away. It comes with features like motion alerts and the ability to stream live video.
Design: SimpliSafe sensors and devices have a discreet and modern design to blend in with home decor.
Battery and cellular backup: The system is equipped with battery backup to keep your home secure during a power outage, and the professional monitoring service includes cellular backup to maintain communication with the monitoring center if the Wi-Fi goes down.
Environmental protection: SimpliSafe also offers sensors that detect water leaks and freezing temperatures to help prevent environmental damage in your home.
Privacy protection: Features like camera shutters allow customers to control their privacy.
While the Simplisafe wireless home security system is great, it does come at a price, of about $320. If you’re looking to spend a little less, don’t fret, Amazon is full of more affordable DIY wireless security systems.
Moxie Showerhead and Wireless Speaker
The Moxie Showerhead and Wireless Speaker is a product by Kohler, known for combining the functionality of a showerhead with the entertainment feature of a wireless speaker.
Showerhead: It’s designed to provide a full-coverage spray, offering a quality shower experience with good water pressure.
Removable wireless speaker: The center of the showerhead houses a wireless speaker that can be easily detached and used independently. The speaker connects to devices via Bluetooth to play music, podcasts or other audio streams.
Water-resistant: The speaker is designed to be water-resistant, which is essential for any electronic device used in a shower.
Rechargeable battery: The speaker has a built-in rechargeable battery. When fully charged, it supports several hours of playtime.
Magnetic docking: The speaker is held in place with magnets, which makes it simple to detach and reattach to the showerhead.
Harman Kardon sound: Some versions of the Moxie speaker are engineered with sound by Harman Kardon, delivering a high-quality audio experience.
Voice assistant compatibility: Depending on the model, the speaker can sometimes be compatible with voice assistants, which would allow you to control music and other functions with voice commands.
Multiple colors and finishes: The Moxie showerhead may come in a variety of colors and finishes to match different bathroom decors.
Installation: It’s designed to be easy to install, fitting onto a standard shower arm.
For those who enjoy listening to music or podcasts in the shower, the Moxie Showerhead and Wireless Speaker system brings convenience and a bit of luxury to the everyday routine. If you’re looking for the same luxury at a more affordable price, you’re in luck. There are plenty of showerhead speaker combos at all price points on Amazon.
Image Source: Kohler
Anthem Digital Shower Control
The Anthem Digital Shower Control is another Kohler product that provides a high level of personalization and precision for the showering experience. It is designed to provide a user-friendly interface to control various aspects of the shower.
Digital interface: The Anthem Control includes a minimalist display with easy-to-read buttons.
Customizable settings: Users can save their preferred shower settings, making it easy to start the shower with their personalized preferences at the touch of a button.
Multiple outlet controls: The system can control multiple water outlets, allowing users to switch between them or use them simultaneously for a luxurious shower experience.
Smart home integration: Advanced models feature integration with smart home systems, enabling control via voice commands or through smartphone apps.
Easy installation: Even though it is a sophisticated system, companies like Kohler design these controls to be as easy to install as possible, sometimes compatible with existing plumbing.
Safety features: Many digital showers include safety features like automatic shut-off after a certain period or if the water gets too hot, which can prevent scalding.
Energy saving: Some models offer features that help conserve water and energy, aligning with eco-friendly practices.
If you’re after the type of precision temperature control that only a digital display like the Anthem Digital Shower Control can provide, consider the much more streamlined and affordable BLTFAUCER Digital Display. While it doesn’t provide as much customization as the Anthem model, it will allow you to achieve and monitor the exact shower temperature you want.
Elements Hexagon Starter Kit
The Elements Hexagon Starter Kit is a product by Nanoleaf, which is a company known for producing smart lighting solutions that are popular for their modular, geometric design and customizable lighting scenes. The Elements Hexagon Starter Kit is part of Nanoleaf’s Elements line, which focuses on combining smart lighting technology with decor.
Hexagonal panels: These are the core of the product, designed to be attached to form patterns on your wall. They’re hexagon-shaped to allow for a variety of configurations.
Wood look: Unlike the original Nanoleaf light panels, which have a very futuristic look, the Elements line has a more natural wood-like appearance, allowing them to blend into home decor more seamlessly when turned off.
Customizable lighting: Users can customize the illumination of each panel to create scenes or set the ambiance. This can include warm to cool white light settings, designed to mimic natural elements like a fireplace or thunderstorm.
Interactive control: The lights can be controlled via an app, where users can select or design scenes, schedule on/off times and adjust the brightness. They can also respond to touch or sound.
Smart home integration: The kit is compatible with most smart home systems, allowing for voice control.
Rhythm feature: With the rhythm feature, the panels can synchronize with music in real time, creating dynamic light shows in response to the audio they detect.
Simple installation: The panels attach to the wall with adhesive strips, which are included in the starter kit, making for a relatively easy setup without needing to drill holes.
Expandability: The starter kit includes a certain number of panels but can be expanded by purchasing additional expansion packs at any time.
The Elements Hexagon Starter Kit is a great system for incorporating upscale and entirely unique lighting into a space. That said, there are also a ton of customizable hexagon lighting solutions on Amazon for a range of prices.
Smart home. Seamless tech. Smiling faces.
The rise of smart home technology stands as a testament to human ingenuity and the quest for an enhanced quality of life. As we look to the future, the integration of these intelligent systems into our homes continues to evolve, bringing new levels of ease and enjoyment. These devices do more than just perform tasks — they create experiences, foster safe environments, and cultivate moments of joy and relaxation.
In a world where time is precious and personal happiness is paramount, the smart home is less about the gadgets and more about the freedom they afford us — the freedom to spend less time managing our homes and more time savoring the pleasures of life. As we embrace this era of connected living, we find that the true genius of smart home technology lies in its ability to fade into the background, creating a symphony of convenience.
Looking for your own place to add tech to? Whether you want to replicate the HGTV Smart Home 2023 or just add some DIY home automation, the future revolves around tech-forward homes. Check out our available apartments and houses for rent.
Inside: Do you want to know the legit ways on how to make 200 dollars fast? This guide will show you how to start working on fast money ideas. With tips on side hustles, online trading, and more, you’ll be able to build up a healthy bank account in no time.
Do you want to know the different ways to make 200 dollars in your leisure time? I bet you do! We all would like extra money in our pockets.
In an era of digitization, earning an extra $200 in your spare time has become more accessible.
Various online platforms offer numerous possibilities to gain this amount swiftly without any major investments or specialized skills. Utilizing these platforms can not only help you reach your financial goal but also provide you with an enjoyable experience.
Let’s delve into the uncomplicated and quick ways to make 200 dollars fast.
This post may contain affiliate links, which helps us to continue providing relevant content and we receive a small commission at no cost to you. As an Amazon Associate, I earn from qualifying purchases. Please read the full disclosure here.
Best Ways to Make Money 200 Dollars Fast
Discover the best ways to earn 200 dollars quickly by enlisting and acquiring the necessary skills.
You don’t even need to start a business or learn new skills virtually if you need the following legit ways to make $200 fast.
Just to note, you will find many of these ideas to be similar to how to make 300 dollars fast.
1. Sell Things You No Longer Need
Want to declutter and make some quick cash, to the tune of 200 dollars?
Start selling your no-longer-needed items and hit your goal. This method perfectly fits for minimalists looking to clear out space, or parents whose kids frequently outgrow their clothes and toys.
For instance, selling gently used toys or clothes could net you $200 in no time. Who knew making money could be as easy as cleaning up?
Even better turn this into a money-making business by flipping items for a living.
2. Sell gift cards
Struggling to add cash to your wallet? Turn those neglected gift cards lounging in your drawers into quick money.
Convert idle (Gift Cards) money to tangible cash by listing and selling on sites like CardCash at a discounted rate.
Another option is to trade your gift cards (you won’t use them) into something you want (like Apple or Amazon). So, weigh your options wisely.
In fact, you can read my CardCash review on my personal experience trading in gift cards.
3. Take on freelance jobs
Let’s start harnessing our skills and take on freelancing jobs online. Freelancing offers a flexible and income-generating platform, perfect for anyone looking to make a quick buck.
It is an effective income hustle, proven by data-driven facts. Best yet, it’s not exclusive to professionals alone. As a beginner, freelance gigs can offer an excellent starting point.
To get started, build a solid profile on a freelance platform that best suits your skills. Offer your virtual skills by getting jobs done in freelancing and experience good compensation for your comfort zone through this job.
4. Get Paid to Travel by Housesitting
Immerse yourself in a world of four-legged friends, greenery, and cozy, well-furnished homes while your wallet gets a welcomed cash addition.
Housesitting is not just about watching homes; it includes pet sitting and dog walking. All you need to do is join such platforms at no cost, set your rates and hours, and voila, you’re earning money while sleeping.
Essentially make money in your leisure time while enjoying the companionship of adorable pets. Who knew earning extra money could indeed entail wagging tails and furry hugs by signing up with Trusted Housesitters?
5. Rent Out Your Spare Space
Do you have spare space gathering dust? Turn it into a $200 goldmine!
Rent your unused closet, driveway, or extra room and have a quick injection of cash. Websites like Neighbor and VRBO are ideal platforms where you can list and rent out these spaces.
Start by exploring the listings in your area, identify the market range, and list your space accordingly. The extra income is just a few clicks away.
Best suited for property owners with underutilized spaces, this idea can serve as a consistent source of income and isn’t just a one-time fix.
6. Participate in Focus Groups
Get ready to voice your opinion and earn 200 dollars instantly!
Focus groups can be your golden ticket to making a quick $200. From my personal experience, they are organized discussions run by companies eager to pay for consumer insights.
Follow these steps and you could be cashing in:
Start by signing up and participating in a focus group that typically involves finding a suitable event in your area.
Involve yourself with popular websites like Bestmark.
Once you start searching for focus groups, you are likely to be targeted with sponsored ads on Facebook that match up to your opportunities.
By participating in discussions, I have earned a range from $50 to over $200.
7. Babysitting is Great Money
Looking for a quick way to pad your wallet? Babysitting is the golden ticket.
This gig is ideal for teenagers, college students, or anyone with some free evenings or weekends who enjoys hanging out with kids and can tolerate the occasional tantrum.
Start marketing your talent by creating a profile on care portals like Sittercity. Having a certificate in CPR can increase your profile and give assurance to the parent looking for a babysitter.
Remember to start with your personal network. Friends, family, and neighbors are a great way to kickstart your babysitting journey. With a bit of effort, you could be earning in less than 24 hours.
8. Make Videos
Are you passionate about making your own video or editing someone’s video to earn an incredible 200-dollar quickly? Jumpstart your day by hitting each click on your computer and adding sound effects on various kinds of videos on any social media.
You can also monetize your own videos by becoming a YouTube vlogger content creator and signing up for the YouTube Partner Program.
With an incredible shift to a remote life, you can now instantly earn from making your own videos through ad sponsorship, brand affiliation, and paid subscription on any application.
9. Get a Side Hustle
Engage yourself in a side gig, a savvy way to rake in cash promptly. Side hustles harmonize best with go-getters seeking financial flexibility or pursuing dreams outside the 9-to-5 grind.
Kickstart your hustle journey with free webinars or training. These platforms provide insights into key strategies and the nitty-gritty of the field.
Get cracking now to transform your monetizing dreams into reality!
Very popular are these side hustles for men. Or especially these side hustles for college students!
10. Online trading with Stocks and Options
Trading stocks and options emerge as a financial adrenaline rush, providing a swift track to earning money. You can convert spare moments into potential cash gains with just a few clicks.
Expert tips include starting with research, practicing with a simulation trading account, and diversifying your portfolio to mitigate risks.
The journey to online trading success begins with educating yourself. You must participate in a free investing webinar to undergo training to grasp trading basics, understand market trends, and form your strategy.
Check out how I learned to trade stocks and options with this Trade and Travel review.
Trade & Travel
Learn to trade stocks with confidence.
Whether you want to:
Retire in peace without financial anxiety
Pay your bills without taking on a side hustle
Quit your 9-5 and do what you love
Or just make more than your current income….
Making $1,000 every.single.day is NOT a pie-in-the-sky goal.
It’s been done over and over again, and the 30,000 students that Teri has helped to be financially independent and fulfill their financial dreams are my witnesses…
11. Take Up a Part-Time Job
Eager to fill your pockets a bit more, huh? Part-time jobs are your key to fast cash without compromising your ‘me-time’.
A part-time job supplements your primary income, leaving your piggy bank a bit heavier. Where you get to choose the timing that fits around your primary commitments.
Honestly, some of the best part-time jobs are actually low-stress jobs after retirement. You don’t need to wait for extra money. So, go get that financial freedom and earn more than just the minimum.
12. Yard Sale
Hosting a yard sale is a nonchalant trick to amass cash swiftly. It’s your winning lottery ticket staring at you from your cluttered garage floor.
Kick-off by hosting it on Friday or Saturday, when shopping spirits fly high! If your neighborhood or city has a date set for a community garage sale or jackpot, you’ll be swimming in extra traffic.
Don’t hesitate to unleash your inner salesperson, but remember, no rule binds you to wait for an event to rake in cash.
Remember, yard sales are your fast lane to quick money, and with these tips, you’re ready to speed!
13. Make Money with Your Collectibles
Turn your old favorite collection of Pokemon cards or Beanie Babies into a treasure chest waiting to be unlocked.
This money-making method is perfect for those who have carefully amassed certain collectibles over time. Sign up for eBay now and enlist your collectibles, antiques, and merch items to earn from it.
Want to kickstart your financial journey with collectibles? Find the most popular items to flip as well as insights on what to look for.
14. Collect and sell items from the trash
It’s time to transform your everyday trash into a hefty stash of cash! Collecting recyclable trash can be turned into a worthwhile moneymaker.
Start by saving cans, bottles, or scrap metal that you’d usually throw away. Then, locate a local recycling center that’s willing to pay for these items – the prices may surprise you!
This method is great for anyone willing to invest a little time and energy, particularly those who are environmentally conscious and eager to declutter. Perfect job for those who are frugal green.
Think about it, that old toaster might just be your next treasure trove! You may even find some highly valuable items in the trash to flip!
15. Sell Used Clothing
Selling used clothing is a clever and straightforward way to turn spare time into real cash.
Remember, a vibrant description for your clothes will attract buyers, so play up any unique or high-quality aspects of your garments.
Fashion enthusiasts want to earn a quick buck on the side. Begin by taking a charming picture of your clothes and posting it to Facebook Marketplace and ThredUp.
16. Do Social Media Marketing
Welcome to the era of making money by simply being social media savvy. Transform your digital skills into quick cash through Social Media Marketing.
Explore the digital world that awaits with all of the social media platforms. You can create engaging content while responding to the readers.
Take your skills to the next level, consider enriching your knowledge via a free webinar or online training.
This is an easy job that pays more than $25 an hour.
17. Sell Printables on Etsy
Do you love making creative paintings and printable designs? Imagine, your beautifully designed chore chart or a fascinating word puzzle bringing joy to scores of customers.
You can dive into this free training to jumpstart your side hustle. This method is a sure-shot hit for you.
Find out which digital products to sell on Etsy.
18. Invest in Cryptocurrencies
Do you have extra money in savings in your account and don’t know where to invest it?
Since 2008, cryptocurrency has taken the world by storm. Known for its decentralizing nature and secured by cryptography, it’s no regular dough.
Turn the tides in your favor and download an investment app to make your $200 grow faster. Consider taking a free webinar or training for a crash course.
You see, investing in cryptocurrencies is not a heavy-duty task. With the right smarts and patience, you can ride the next crypto wave!
19. Get Paid to Click
Among the numerous ways to earn an extra $200, getting paid to click is a simple and fun method.
Websites provide users with the opportunity to earn money through ‘pay to click’ surveys or rewarding viewers for ad consumption. Additionally, apps such as Survey Junkie and Swagbucks allow you to earn money by taking surveys, participating in focus groups, or simply navigating the web.
Each user generally earns from a few cents to a dollar per click. With patience and consistent effort, you can gradually accumulate your earnings to reach your $200 target.
Here are the top legit survey platforms:
20. Check Out Cashback Apps
Earn a cashback every time you shop at your favorite retail store or online.
Start off by signing up for apps like Dosh, Fetch, Rakuten, and Ibotta which offer bonuses just for signing up.
Lastly, apps like Acorns or CoinOut provide cash back on everyday shopping, even rounding up your purchases to add a bit more to your savings.
21. Do Odd Jobs as a TaskRabbit
Wanna earn cash quickly? Sign up and do freelance labor with TaskRabbit.
This user-friendly job marketplace connects people in need of task assistance with capable individuals willing to complete the tasks for a fee. It offers a diverse array of tasks, from assembling furniture and helping with moves to painting, yard work, and minor home repairs.
Just by performing various tasks, such as events staffing, running errands, or crafting. With the average TaskRabbit making double the minimum wage, this might be the gig for you.
TaskRabbit
Find local jobs that fit your skills and schedule.
With TaskRabbit, you have the freedom and support to be your own boss.
Plus set your own rates!
Get Started
22. Earn Money with Your Knowledge
Using your personal set of skills is a major advantage in freelancing platforms such as Fiverr, Upwork, and Freelancer.com.
Be it graphic design, content creation, SEO mastery, or even web development, you can monetize these proficiencies directly from your home. Data shows a significant growth in the gig economy over the past decade, suggesting a flourishing potential for remote work and online income generation.
Remember, your vast knowledge pool is your strength here. So, focus on what you’re best at, and let the money flow in.
Indeed, by effectively marketing your skills, pulling in a sum over $200 within a few hours is achievable. Remember to value your work appropriately and not devalue your aptitude just to land a job.
23. Tutoring
Online tutoring provides plenty of diverse opportunities in various subjects beyond just English. You can choose to specialize in specific topics and decide to tutor students of different age groups – from young children to college students.
Platforms like VIPKID and Magic Ears allow qualified tutors to offer virtual classes, specifically in the English curriculum for kids aged 4-12 years.
Tutors are usually compensated with payments ranging from $7 – $9 per class or up to $25 or more per hour. Also, you can increase your rate once you gain experience and build a reputation as a tutor. With in-person tutoring, you can expect to earn $20 an hour or more.
24. Petsitting
Looking for a quick way to make $200 fast? If you’re an animal lover, offering pet-sitting services isn’t just enjoyable, but also quite profitable.
Simply sign up with platforms like Rover, you can possibly get paid two days after service completion and you can always set your own rates. Just by walking the dog from house sitting.
Fun fact: Dog sitters often earn up to $50 a day. This is flexible and enjoyable work that could definitely help you reach your $200 target quicker than you’d imagine!
Rover
Get paid to play with pets!
Rover makes it easy and promotes you to the nation’s largest network of pet owners.
Earn money doing something you love.
Become a Sitter
25. Collect Scrap Metals and Junk
One man’s trash is indeed another man’s treasure.
Thinking of ways to earn quick cash? Consider collecting scrap metals and junk. This simple but profitable task can be done by anyone, with no particular set of skills necessary. All you need are keen eyes, a truck, and, admittedly, a little bit of strength to do the following:
Identify Metals: Start by identifying the most valuable metals – brass, copper, and aluminum.
Collect: Gather your metals, either from your home or by browsing local dumps. Remember, one man’s trash can be another man’s treasure.
Sell: Locate a local scrapyard and sell your haul at a fair price.
Keep in mind that patience is key; you might start with just $100 a day, but with experience, this can increase to a lucrative $500 a day!
26. Cash Out Your Coins
Are you sitting on a pile of coins? Maybe it’s time to cash them out. Here’s how:
Gather all your change together. Check under the sofa cushions, in car cup holders, and even in the bottom of your bag.
Take your coins to a coin-counting machine. These can be found at many grocery and department stores as well as your local bank.
Deposit these coins in a savings bank.
Expert Tip: Many banks provide free coin-counting services to their customers. Save on the counting machine charges by using these instead.
27. Run A Dropshipping Business
Dropshipping is a retail fulfillment method where you sell products without ever handling the inventory. This side hustle could potentially make you a quick $200 if executed strategically. Ready to dive in?
To level up, consider enrolling in free webinars on sites like Skillshare or free dropshipping training programs like Oberlo 101. This method is most suitable for those game to learn the ins and outs of online retail business and are ready to deal with customer interactions.
Remember, selling high-demand items will turn a quicker profit!
28. Do Micro Tasks
Looking to make cash fast? Turn your spare time into cash by capitalizing on microtask websites and get paid for completing simple jobs!
This method is particularly effective for those with meticulous attention to detail and those who can afford to spend some time on basic tasks such as data entry, data verification, information sorting, and transcription.
Microtasking might not be a golden goose, but it sure can help you accrue $200 surprisingly fast. The beauty of this hustle is in its simplicity, making easy money with minimal to no investment.
29. Find Sign-Up Bonuses
Did you know that many banks and credit companies offer sign-up bonuses as a strategy for attracting new clients?
For instance, some banking promotions in the United States can offer bonuses of up to $300 in total value when you sign up for a new account or credit card. Also, there are several credit cards that provide bonuses ranging from $500 to $800 or more, simply for registering and spending a defined amount within a specific timeframe.
Some cards, such as Chase Sapphire Preferred, offer lucrative rewards like a $1,000 bonus after a spend of $4,000 in the first 3 months.
It’s definitely rewarding to explore these possibilities to supplement your income, but it’s crucial to maintain a good credit score and commit to paying off your balance monthly to avoid any interest charges.
30. Cash Advances
Cash advances offer a rapid solution, but it’s essential to use them wisely.
Basically, a Cash advance is an advance on your next paycheck, and yes, it’s a viable way to get your hands on some quick cash. Also, some budget apps like Chime offer this service automatically.
Keep in mind, though, it’s an advance and not additional income. So, plan your expenses wisely and make it count!
FAQ
If you’re on a quest to make $200 as fast as possible, we’ve got your back. From selling items you own to completing quick gigs online, there is a plethora of opportunities out there for everyone.
For example, suppose you’re handy at a skill – be it haircuts, car repairs, pet sitting, or painting. You can start by offering your services to people in your neighborhood.
Or, if you’re the digital savvy type, consider selling items you no longer need on online platforms such as Facebook Marketplace or Craigslist. You’d be surprised at how quickly you can make money from items collecting dust in your home.
Ultimately, make sure you choose a fast money-making plan that aligns with your skills, interests, and resources. Go forth and rake in that cash.
If you need to make $200 today, you have a range of options at your disposal.
You can try different online strategies, including participating in online surveys, offering your skills on freelance platforms, or even reselling items online. While many people will sell the idea of a blog to make money, that is not a way to make money today.
Remember, the key is to zone in on tasks that require minimal effort but offer swift returns; these could include grandma sitting, dog walking, or even participating in online offers and promotions.
To kick-start your financial venture, locate valuable items in your home that you no longer need. Your dusty old guitar or that once-loved designer handbag could do the trick. Sell these items on widely used platforms such as Craigslist or Facebook Marketplace for instant cash.
Also, in the digital age, skills are an asset. Offering your skills on platforms like Fiverrcan turn your talents into quick cash. Don’t underestimate the power of quick gigs!
Tapping into the world of free sign-up bonuses can also fill your wallet quickly. Or even participating in a paid focus group!
If you need to make $200 quickly, there are several tried and tested methods. You could start by driving for Uber or Lyft for the evening during a concert.
My preferred method is trading options in the stock market. While this one is a skill, I developed over time. It has proved to be a tried and true method for me to make $200 in a few hours.
Time to Get 200 Dollars Instantly
By reading this article, you have learned and discovered the most effective ways to earn $200 quickly.
In order to have quick success, here are tips to help you out:
Sign up for a complimentary training or webinar that focuses on effective and proven methods of earning money swiftly.
Learning from other’s experiences can certainly save you some trial and error.
Ensure these training modules offer you practical skills and insights rather than just theory. Real-world applications of these strategies are what will help you rake in some quick cash.
Remember, your motivation and dedication are as important as the information and tools you acquire.
If you are looking to make a little bit more, check out how to make 500 dollars fast. Or even how to make 2000 fast!
Know someone else that needs this, too? Then, please share!!
WASHINGTON (September 14, 2023) – The current real estate market’s high home prices and mortgage rates, as well as limited inventory, are the top reasons that Realtors® and prospective home buyers across races and ethnicities cite as barriers to purchasing a home, according to two new reports from the National Association of Realtors®.
In partnership with Morning Consult, NAR’s 2023 Experiences & Barriers of Prospective Home Buyers Across Races/Ethnicities report surveyed White, Hispanic/Latino(a), Black and Asian prospective home buyers about their experiences. NAR’s 2023 Experiences & Barriers of Prospective Home Buyers: Member Study surveyed Realtors® who focus on residential real estate regarding the latest buyer with whom they worked who has not yet purchased a home, and it compares findings with the consumer study.
“Home buyers face the most difficult affordability conditions in nearly 40 years due to limited inventory and rising mortgage interest rates,” said Jessica Lautz, NAR’s deputy chief economist and vice president of research. “The impact is exacerbated among first-time buyers who are more likely to be from underrepresented segments of the population.”
Among prospective home buyers, Asian (27%), Hispanic (24%), Black (20%) and White (15%) respondents say the main reason they have not yet bought a home is because they are waiting for prices to drop. White respondents (15%) are just as likely to say it is because they are waiting for mortgage rates to drop. Additional market-related reasons that prospective home buyers cite as barriers include waiting for mortgage rates to decline (18% – 25% of all four groups) and not enough available homes within their budget (19% – 24% of all four groups).
The top three reasons why Realtors® say buyers have not yet purchased homes are the same as reported by consumers: not enough homes available for purchase in buyers’ budgets (34%), buyers are waiting for mortgage rates to drop as higher prices affect affordability (18%) and buyers are waiting for prices to drop (9%). These three factors greatly impact affordability since limited inventory drives up home prices and higher rates increase monthly mortgage payments.
Saving for a competitive home down payment is also a primary obstacle for prospective home buyers (6% – 9% of all four groups). In terms of what holds them back from saving for a sufficient down payment, prospective home buyers across races and ethnicities cite as barriers current rent/mortgage payments (43% – 56% of all four groups) and credit card payments (38% – 57% of all four groups). Despite this, awareness about existing down payment assistance programs is low among prospective buyers saving for down payments. Only 8% – 15% of all four groups applied for these programs, 20% – 33% considered but did not apply to these programs, 21% – 32% did not consider these programs, and one-third (30% – 33% of all four groups) say that they are not aware of these assistance programs. For prospective home buyers who are aware of down payment assistance programs, the primary reason they did not apply for them is because they did not know enough about the programs (44% – 58% of all four groups).
Likewise, more than half of Realtors® (53%) say that at least one issue is holding their latest buyer back from saving a competitive down payment: most likely current rent or mortgage payments (23%) or credit card balances or payments (17%). Further, only 23% of Realtors® say that their buyers experiencing these challenges have applied for down payment assistance programs. This is most likely because their income is too high (30%), they did not know enough about the programs (19%), or they are worried about the competitiveness of their offers in multiple-bid situations (17%).
“Down payment assistance programs often fly under the radar for potential home buyers. Using programs – like FHA, VA or USDA loans – can make homeownership more attainable. Experts, such as agents who are Realtors®, can educate potential buyers about these programs. Doing so will bring in more first-time buyers and narrow the racial homeownership gap,” added Lautz.
Discrimination also plays a role in the homebuying process. About one in six (13% – 16% of all four groups) prospective home buyers across races and ethnicities report facing discrimination. More than half of Black (63%), Asian (60%) and Hispanic (52%) prospective home buyers who report this say it was due to their race or ethnicity. Of these, the largest proportions of every group are most likely to report that this discrimination manifests in steering toward or away from specific neighborhoods (36% – 51% of all four groups) and more strict requirements (32% – 48% of all four groups). Despite all of this, most discrimination during the homebuying process goes unreported: 47% – 81% who describe it did not report it to a government agency or legal aid organization.
Interestingly, only 1% of Realtors® who took the survey report that their buyers experienced discrimination during the homebuying process, while 13% are not sure. Those reporting discrimination are most likely to say this is based on race or ethnicity and lay this at the feet of lenders, saying that buyers experienced this in the type of loan product offered (43%) or that buyers did not receive a call back from lender(s) (29%). Of those who report discrimination, 57% report it based on race, 29% report it based on age and 21% report it based on familial status (including marriage or parental status). Just 7% say that the buyer reported the discrimination, which was on the basis of either race or religion or both, to a government agency or legal aid organization.
To help address discriminatory practices in real estate, NAR offers several resources to its members, including Fairhaven, an interactive training simulation based on real fair housing cases; Bias Override, an implicit bias training course with practical tips to override bias; At Home With Diversity, a certification course aimed at serving diverse consumers; and a confidential voluntary self-testing program for brokerages to assess agents’ compliance with fair housing laws. In Washington, NAR advocates for strong fair housing and fair lending enforcement, and policies aimed at closing homeownership gaps among demographic groups.
About the National Association of Realtors®
The National Association of Realtors® is America’s largest trade association, representing more than 1.5 million members involved in all aspects of the residential and commercial real estate industries. The term Realtor® is a registered collective membership mark that identifies a real estate professional who is a member of the National Association of Realtors® and subscribes to its strict Code of Ethics.
There have long been stirrings of a potential Fannie Mae and Freddie Mac merger, or the outright dissolution of the under-fire companies ever since they fell under conservatorship back in 2008.
And now it looks as if the wheels are finally in motion.
Yesterday, during prepared remarks at an economic conference in Washington, FHFA director Edward DeMarco revealed plans for a “new business entity,” essentially a securitization platform that could eventually serve as the framework for the secondary mortgage market.
The initial operation and funding for the business will be provided by Fannie and Freddie, though the venture will be led by individuals outside the two companies, in a physically separate location.
In short, the company is being formed to replace the outdated infrastructure that exists at the two companies today, which some feel led to the mortgage crisis.
Fannie and Freddie provide liquidity in the mortgage market to ensure banks and lenders have money to make new loans, but in recent years they’ve grown far too large.
They’re also inherently flawed, seeing that they were public-private companies (before the takeover) that attempted to meet government housing goals while also competing with private market participants, so much so that they took part in high risk lending during the housing run-up.
The Need for Private Capital
At present, Fannie, Freddie, and the FHA/VA support more than 90% of new mortgages originated, meaning private capital is largely absent from the mortgage market. It has been since crisis first took hold, with no one willing to take on the risk without an explicit government guarantee.
Unfortunately, this means the American taxpayer is essentially guaranteeing the housing market, which is no bueno.
In 1980, Fannie and Freddie owned or guaranteed just seven percent of the residential mortgage market, and saw that number spike to about 47% in 2003, per the Heritage Foundation.
By 2010, Fannie and Freddie owned or guaranteed roughly half of all outstanding residential mortgages in the United States, and financed nearly two-thirds of new mortgages.
Going forward, the aim is to reduce the presence of Fannie and Freddie (and the FHA) and get back to a more private mortgage market with much less government involvement.
Aside from the new securitization platform, DeMarco noted that the pair is expected to reduce its massive footprint in the mortgage market by selling off loans held in its retained portfolios.
They will also be directed to take part in “credit risk sharing transactions” involving things like expanded mortgage insurance and credit-linked securities from the private market.
Along with that, DeMarco said he expects the FHFA to continue increasing guarantee fees in 2013, after raising them twice in 2012.
This will mean higher mortgage rates for consumers, as g-fees are typically just passed along to the borrower.
But the aim in increasing the fees is to lure in more private capital by making Fannie and Freddie-backed loans less competitive.
For the record, the FHA has employed similar tactics, with both the upfront mortgage insurance premium and annual mortgage insurance premium increased to account for more risk.
An Alternative to Fannie and Freddie
The Bipartisan Policy Center has already come up with an alternative to Fannie and Freddie; a wholly owned government corporation known as the “Public Guarantor.”
Unlike Fannie and Freddie, it wouldn’t buy and sell mortgages, or issue mortgage-backed securities. Instead, it would leave all that to the private sector.
However, it would guarantee investors the timely payment of principal and interest on the underlying securities.
In the event of default, the Public Guarantor would be in a fourth-loss position, behind the borrower and their home equity, private credit enhancers, and issuers and servicers.
The “PG” would also be responsible for qualifying participating institutions, establishing guarantee fees, and setting standards, including conforming loan limits.
What It Means to Homeowners
Without getting overly technical, the dissolution of Fannie and Freddie shouldn’t have an enormous impact on borrowers and the housing market at large.
The Heritage Foundation (which seems to despise Fannie and Freddie) ran a simulation over 10 years and found that sales of new homes would fall an average of 0.81% and sales of existing homes would slip 1.58%.
As a result, the homeownership rate in the United States would fall just 0.11% over the decade.
Meanwhile, without Fannie and Freddie guaranteeing mortgages, those who wind up holding the mortgages would demand a higher interest rate to offset the increased risk.
They predict rates on a 30-year mortgage to be anywhere from 25 to 40 basis points higher.
In other words, instead of a 4.08% mortgage rate, you’d be looking at a rate of 4.33% or higher. However, rate movement could be a lot more volatile, with large swings and less predictable rate tracking.
But because home prices would be slightly lower as well, monthly mortgage payments would actually drop.
Clearly there are implications at all levels, but changes are necessary.