Another crucial part of building the tech is having “a lot of people” using the system, which is an advantage for Blend, according to Ghamsari. Blend’s mortgage banking software processed 23.2% of the total market originations in the second half of 2022, up from 14.5% in the second half of 2021.
Read on to learn more about the opportunities and challenges that AI poses to the industry, what the company has to say about the risk of getting delisted from the New York Stock Exchange (NYSE), and insight into Blend’s roadmap for profitability.
This interview has been condensed and lightly edited for clarity.
Kim:Blend has played a critical role in powering about a quarter of the mortgages that originated during the refi boom. It seems like the next big wave is artificial intelligence. How is Blend preparing for the era of AI in the industry?
Ghamsari: I think on the AI piece, it’s about combining an understanding of what the client is trying to accomplish.
Now that a system can understand the essence of the question the consumer is trying to understand, it (AI) can actually do that work for the LO in the background, and then when the LO shows up, that work is already done.
Some of these borrowers have hundreds of products that they can choose from. How is an LO supposed to keep that in their head? It’s too much context, and this will be a supercharger for them.
In order for that to happen, you have to have a lot of people using it, which Blend does. You have to be connected to all these data sources and internal systems to both the customers and etcetera — and we are. You also have to be something that the LO uses on a regular basis.
So we’re in this position where I think we can really help the industry, and particularly LOs, who are trying to make things work for consumers.
Kim: Then I assume AI could also take that extra step in correcting some information for LOs that they provide for borrowers?
Ghamsari: I think there’s a separate piece, which is for efficiency. There’s a lot more opportunity to understand what’s required to be done on the loan file after it’s already gotten through the space.
Understanding those requirements and documentation, and actually understanding the data and saying, ‘we need this additional piece of information,’ or ‘we extracted this information, and now that loan looks like we need to change something about it to correct it for whatever reason.’
So I think that’s a separate opportunity that I think is also potentially pretty compelling. Almost think about it as like a co-pilot for an underwriter. That same exact capability could exist.
Kim:Are there any features that Blend is trying to build as the industry gets more involved with AI?
Ghamsari: Nothing I’m prepared to share today, but we are definitely looking very closely at the space. Blend has some unique things — like how many people use our system is very important, and all the systems we’re connected to are very important. All the history of data we have is very important.
So Blend is that interface between LO and the consumer today for a lot of our customers.
Kim:I’m curious how in what ways AI can help with homeownership and tapping into a potential customer base.
Ghamsari: I think that’s the area of the market that will benefit the most from AI. Most people who are first time homebuyers, or in underserved markets, don’t understand all the products and all the things that a bank could help them do or a lender could help them do.
Imagine you’re a lender or an LO or a bank who is trying to serve the mass market. In order to serve them really well, you have to be able to do that work on every file, and it’s just not scalable to build something that requires LOs to spend 20 hours on every file bill to answer that question.
So that’s why I think the co-pilot model is especially important here, because you still want that borrower to have that LO. But you want that LO to be able to do a lot less work to serve that customer.
Kim: The big issue when it comes to AI is getting rid of that bias in machine learning.How can we tackle that?
Ghamsari: I think this is where having a human in the loop is important. There are programs – whether it’s the government, or banks – in place to allow for these higher LTV or lower-income borrowers to get access to credit.
I think what this (AI) does is — in theory — this unlocks the ability to make every specific situation as personalized as possible, which is what an LO would do if they could spend 20 hours in every file.
Kim: Are there any other challenges you foresee other than the bias factor in AI?
Ghamsari: I think the technology is extremely difficult to build. It’s not just taking some large language model or adding open AI to your platform. Building something that can understand the complexity of a consumer’s financial situation and understand all the products and programs that are out there — and understand the intent of the consumer. All three of those things are actually extremely complicated.
Kim:I want to shift focus to the notice Blend received from the NYSE about not being in compliance with the bylaws. Blend’s stock price has been up since its first quarter earnings call, trending closer to $1 level led by revenue above target and shrinking operating loss. How confident are you that Blend can meet NYSE’s bylaws?
Ghamsari: We have a plan to meet it. I feel good about that plan.
Obviously, I think there’s just general challenges. We are growing market share a lot right now and helping our customers a lot. What I’ve always said is – first and foremost during times like this – it’s not about selling customers new things. It’s about being there for our existing customers.
I want everyone to use it (Blend) so they can benefit. Let’s get a prescriptive roadmap for our customers to help them, and all those other things will take care of itself.
Kim: I’m curious what the board’s response was when Blend received that notice.
Ghamsari: We knew it was coming. It wasn’t a surprise to us and we had a plan.We wrote a letter back to the Stock Exchange saying here’s our plan.
So we were prepared, we knew it was coming, and we had a plan to deal with it.
Kim: We are in a downturn of a cyclical business. I remember you saying that in Q4 of next year, Blend will have positive operating profit numbers. What are some of the crucial external and internal factors for Blend to recover its share price, which once traded above $20?
Ghamsari: We said net operating loss will be less than $20 million in Q4 of this year, and then we’ll be profitable next year. We’re going to hit that plan.
We have different levers in our business. We have a lot of discretionary investment that we’re doing for the sake of our customers. Blend has the balance sheet to do it. We have the customer base that needs it, and will stick with us. So we have to keep investing; that is our job.
If the macro gets materially worse, we’ll pull back on some investment. But we have now scoped it out to where we feel really good about that.
In terms of getting the stock price back to a certain number, all I think about is, how do I keep making our customers get more value from us even for things they don’t pay for? How do I use that to get customers to want to do more with us? Because if we make them more successful, they’re going to want to do more with us.
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Last updated – July 30, 2022
I admit it – I love a good garage sale. However, there is something even better about a good thrift store. I have been amazed at the things I have found there. I have found clothes with tags on them and end up paying less than 90% of the marked price! No kidding!
What I think I love most about thrift stores is the thought that my frugal finds actually benefit someone. Whether it be the Salvation Army, Girls & Boys Club, or even Council of the Blind — my money isn’t lining the pockets of the big dogs. That always makes me feel good!
Another plus is that I am, in essence, recycling! I am not having to buy all new stuff and am giving things that are gently used a second chance at life. It is amazing what a fresh coat of paint can do to a headboard that you pay $3.00 for! If that cute shirt has some smudges on it, you’ll find that a little soaking in some Oxy Clean or tossing some Tide Stain Release in the washer and it’s as good as new. Oh – and the toys — as long as they don’t have batteries, just throw them on the top shelf of your dishwasher and they’ll clean up good as new!
Did you know that when you donate to some thrift stores you can get cash, discounts or both? And, you can even get tax receipts for your donations through many of them — just be sure to keep a VERY accurate list of every item you donate so you can calculate the correct deductions come tax time!
If you love your thrift store, be sure to sign up for any newsletters that they might have. You never know when you’ll catch a sale. Yes – even thrift stores have sales!!! If you think about it, if you find a shirt that is $3.00 — then you are going to pay only $1.50!
So, if you’re a “closet” thrift store shopper — come on out! You’re no longer alone!
Almost everyone wants to find ways to make more money. It’s only natural, as making more money may allow you to:
Pay off debt
Travel more
Retire early
Stop living paycheck to paycheck
Afford the things you want in life
And more!
One of the things that usually stops people from making more money is a lack of time. However, making more money and managing side hustles all depends on how badly you want it.
Some people may not want it as badly, and that’s fine. However, excuses won’t help you, so if you really want to make more money, then you will have to find more time in your day.
Just think about it: What do you think you could do with an extra 5-10 hours, or even more, each week?
Whether you want to transform your side hustle into your full-time career, want to make more money to tackle a financial goal, or something else, finding ways to make more money can completely change your life.
While I don’t side hustle any more, I am always looking for ways to increase my income. Before, I used to side hustle, work a full-time job, attend college, volunteer, and more. Now I mainly just focus on my business and managing a comfortable work-life balance.
Related:
Whatever it is that you are trying to balance, below are my tips for finding time to make more money.
Be realistic about how much time you have
Everyone has the same 24 hours in a day, but others may be more limited than others. I understand that different situations can make a person quite busy. In the end you always need to be honest with yourself about how much available time you have to make more money.
You don’t want to run yourself ragged, forget about the things that truly matter in life, hurt your work performance, and more.
However, many people do have extra time in their days but just don’t realize it. For one week, I recommend keeping track of the time you spend on various tasks and see how much time you waste.
You’ll most likely be very surprised and learn how to find extra time to make money.
Wake up earlier
When I had my day job, I would usually wake up around one to two hours before I had to start getting ready for work. I would use this time to work on my side hustles, which included replying to emails, brainstorming ideas, managing my blog, finding mystery shops, and more.
Sometimes, waking up early was rough, but it was nice to get everything done before I went to work.
If you’re not a morning person, you can always try to fit in time before you go to bed. Often I would even work on my side hustles for a few hours before I went to bed.
If you spent two hours every day before you went to work, you could put 10 hours each week towards your side hustle ideas.
Related: 9 Tips To Wake Up Early & Why It Feels So Good
Get rid of time wasters
I want you to do something right now. Yes, right at this moment!
Take a moment and really think about how much time you waste watching TV and browsing social media.
According to Neilsen statistics, the average person in the U.S. spends 40 hours each week watching TV and movies. Plus, according to AdWeek, adults spend nearly two hours every day on social media. For teenagers the amount of time increases dramatically, to nearly 9 hours a day!
That is an enormous amount of time being wasted.
Use short gaps in your day wisely
Everyone has gaps in their day. This could be a gap before you have a meeting, a gap between your day job and night classes, a gap before you have to pick up the kids from school, or something else.
Maybe you have 30 minutes or an hour. Most people will just plunk down on the couch and watch TV or browse Facebook. However, you should find ways to wisely use these gaps in your.
Multitask correctly, if you can
You may want to try to multitask, as long as it does not decrease the quality of your work or cause you to waste more time.
Some examples of easy and productive multitasking include:
While I am cooking a meal I work at the same time. Instead of just standing and making a meal, I use the little breaks I have to work. Or, I may even use that time to do short exercises, such as lunges, sit ups, squats, and more.
If you are on the phone and on hold, you could do something while you are waiting, such as creating your grocery list, short workouts, finishing up an email, and more.
Do all of your errands in one trip instead of spreading it over a longer period.
You do want to keep in mind that some people are good at multitasking, whereas some are not. There is proof that multitasking can actually result in you wasting time, because it can take time to get yourself ready every time you stop and start a task.
I recently read something that said whenever you start and stop a task you waste at least 25 minutes. That adds up over time!
Due to this, you will want to be smart when it comes to multitasking, and see what is and isn’t helping you.
Rethink your commute
This one may not be for everyone, as many people do need to drive to work. However, if you commute to work using something like a bus or train, then you might want to efficiently use this time by working on your side hustle jobs.
If your side hustle is something that you can do from your phone, laptop, or just with a piece of paper, then this can be a great time to brainstorm ideas and work on your side hustle.
Stay organized
Being organized can help you save time and make more money.
Here are some surprising statistics about being unorganized that I found from Simply Orderly:
The average person spends 12 days per year looking for things they can’t find.
Every day the average office worker spends 1.5 hours looking for things.
In a recent survey, 55% of consumers stated they would save anywhere from 16 to 60 minutes a day if they were organized.
Strategically use your lunch time
When I had my day job, my lunch time was almost always used for my side hustles. I would often bring my lunch to work, which allowed me to save money on food and to use that whole hour for my side hustle ideas.
Right there, that’s five hours every week for side hustles, just by using your lunch hour.
What do you do to save time, so that you can make more money? What time management tips do you have to share?
The Traditional IRA and its offshoots (SEP, SIMPLE, rollover and Roth IRAs) play a leading role in helping millions of U.S. taxpayers invest for retirement. However, many IRA owners are unaware of the opportunity they have to consolidate their multiple IRAs by using a “Super IRA” strategy (most common is a rollover 401k).
An IRA consolidation strategy can lead to reduced fees and increased buying power. I’ve had several instances where an individual has had several old retirement plans from previous employers. That has included defined benefit plans, 401k’s, TSP’s, 403b’s and Keough plans. The paperwork alone was cumbersome, and consolidating has made tremendous sense.
If you like this article, please be sure to also check out 401k Tips: What Not To Do, Rollover IRAs Offer a Wide Range of Benefits, 7 Things To Know About The 2010 Roth IRA Conversion
IRA Consolidation Case Study
The following is a common scenario involving a worker (Patrick) who has changed jobs several times throughout his career. He has been diligent about saving for retirement, but his assets are scattered. An IRA consolidation strategy is suggested, and the section concludes with a three-step action plan for investors like Patrick.
Patrick’s Profile:
Frequent job changer, age 62, is approaching retirement.
He has lost track of his numerous retirement savings arrangements.
He turns to his advisor for help with simplifying his financial affairs.
During his career, Patrick has accumulated various retirement accounts but has lost track of the status of each. He is 62 years old and is thinking of retiring from his current job. He has three retirement plans with former employers [a profit sharing plan, a target benefit plan and a 403(b) plan], four Traditional IRAs, a SIMPLE IRA, two Roth IRAs, an Individual(k) plan he established when he owned his own business, and a Thrift Savings Plan he now has as an employee of the federal government.
He is also the beneficiary of his deceased wife’s nonqualified deferred compensation plan and her Traditional IRA. In an effort to simplify his life, he turns to his financial planner for help. This is a strong case for implementing the “Super IRA” consolidation strategy.
How to implement the Super IRA Consolidation strategy
Step 1: Understand the Rules
A person who owns multiple SEP IRAs and Traditional IRAs can combine them into one “Super IRA” at any time.
If the person also owns a SIMPLE IRA, he or she can transfer or roll it to a “Super IRA” after participating in the SIMPLE IRA plan for at least two years. The two-year period begins when the first SIMPLE IRA plan contribution is made to the individual’s SIMPLE IRA.
A “Super IRA” can receive ongoing SEP plan contributions and annual Traditional IRA contributions.
Ongoing SIMPLE IRA plan contributions must first be contributed to the participant’s SIMPLE IRA. If the individual has participated in the SIMPLE IRA plan for at least two years, he or she can transfer or roll over the SIMPLE IRA into one “Super IRA.” (Note: special rollover rules may apply.)
A “Super IRA” can receive rollovers of eligible assets from all types of qualified retirement plans [e.g., 401(k) plans, profit sharing plans, defined benefit plans, etc.], 403(b) plans, 403(a) plans and governmental 457(b) plans.
A Roth IRA cannot be transferred or rolled over into a “Super IRA.” Multiple Roth IRAs can be combined to create a “Super Roth IRA.” Under the Pension Protection Act of 2006, effective in 2008, participants in qualified plans, 403(b) plans and governmental 457(b) plans can directly roll over eligible plan assets to Roth IRAs if conversion rules are satisfied.
Spouse beneficiaries of qualified plans and SEP, Traditional and SIMPLE IRAs generally can consolidate their inherited accounts into their own “Super IRA.”
Step 2: Consider the Potential Benefits of a “Super IRA” Strategy
Increased buying power, which allows for more sophisticated investment strategies
One fee vs. multiple fees
Simplified investment tracking
Beneficiary organization and consolidation
Consistent service
Streamlined paperwork
Simplified retirement income planning
Step 3: Work With Your Advisor
Investors should work with their advisors to determine whether a “Super IRA” asset consolidation strategy makes sense for them.
In our scenario, Patrick’s planner asks him the following key questions:
Do you have the most recent statements from each of your retirement accounts?
What type of investments do the plans hold?
Are any of your retirement plans invested in employer securities?
Is your goal to consolidate your accounts as much as possible?
How long has it been since you first participated in the SIMPLE IRA plan?
Patrick’s goal is to consolidate as many of his retirement accounts as he can into one “Super IRA.” He obtains copies of his most recent retirement account statements to review with his advisor. He first participated in the SIMPLE IRA plan a year and a half ago. He does not hold employer securities as a plan investment.
After reviewing the statements, Patrick and his planner determine he could combine the following retirement accounts into a “Super IRA”:
Profit sharing plan
Target benefit plan
403(b) plan
Five Traditional IRAs (the four he owns outright and his inherited IRA)
Individual(k) plan
In another six months (two years after first participating in the SIMPLE IRA plan), he could transfer or rollover that balance to his “Super IRA” as well. Patrick cannot combine his two Roth IRAs into his “Super IRA,” although he could consolidate them into one “Super Roth IRA.” And he cannot roll over the nonqualified deferred compensation plan. Although he could combine the plans as outlined above into one “Super IRA,” it would be best for Patrick and his planner to carefully examine the types of investments currently held by the various plans to see if a rollover is the wisest course of action from a taxation standpoint.
For example, special tax rules apply to distributions of employer securities from qualified retirement plans. This would be case of NUA or Net Unrealized Appreciation. Keep in mind, a consolidation strategy may not always be suitable. An advisor, or a tax or legal professional, can help identify the best course of action to incorporate the best investment services.
One important distinction between advanced award travelers and those newer to the world of points and miles is how each group searches for award space.
Those with experience earning and burning points and miles will carefully study various partner award charts, looking at where to transfer their flexible points and what sweet spots they can utilize. Meanwhile, beginners may log into their United MileagePlus or American Airlines AAdvantage account, search for the destination they want to visit and book the first award they see regardless of price or convenience.
While anyone can accrue a good amount of points by earning welcome bonuses on top travel credit cards, this difference in redemption strategies is huge. Using the right partner program to book your award could save you as much as 50%, depending on the carrier and route.
With major programs switching to dynamic pricing and 500,000 miles for one-way business-class flights to Europe becoming increasingly common, it’s more important than ever to know the best ways to maximize your points and miles.
Today, we’ll look at some of the best value sweet spot award redemptions. While this list is not exhaustive, if you plan to travel to one of these destinations and have points at your disposal, these are surefire ways to get an excellent redemption value every time. If you’re new to the world of points and miles and any of these destinations interest you, you can use this as a road map to instant success.
ANA premium cabins to Japan with Virgin Atlantic points
Virgin Atlantic’s partner award chart for ANA is one of the best sweet spots out there. While availability can be hard to come by, and the first-class rates recently increased, this remains an incredible use of Virgin points.
The sweet spot
For this sweet spot, it’s important to know that the prices differ if you’re flying from the West Coast versus the central and eastern U.S. You can also book one-way flights for half the round-trip prices noted below.
ANA’s new business class is called “The Room,” and its new first class is referred to as “The Suite.” Both are excellent products that we are big fans of here at TPG — and flying in either means you can visit the always-popular Japan.
You’re allowed an open-jaw routing as long as you stay within the same region of the U.S. (West or Central/East). This means you can mix and match airports wherever you find award space.
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For example, flying from Washington, D.C.’s Dulles International Airport (IAD) to Tokyo’s Narita International Airport (NRT) and then returning from Tokyo’s Haneda Airport (HND) to New York’s John F. Kennedy International Airport (JFK) would be a valid itinerary, costing only 95,000 points in business or 170,000 points in first class.
Availability can be scarce — you will have the best luck booking 12 months in advance (as soon as the seats are loaded) or last minute (less than 14 days before departure when unsold seats are often loaded for awards). Your best bet for finding availability is to search for it using the United MileagePlus website and call Virgin’s Flying Club to book.
Related: Feels like first class: Flying ANA The Room business class from LA-Tokyo
Earning Virgin Atlantic miles
Virgin Atlantic miles are among the easiest to earn. You can transfer points from Chase Ultimate Rewards, American Express Membership Rewards, Citi ThankYou Rewards, Capital One, Bilt Rewards and Marriott Bonvoy to Flying Club. Keep an eye out for transfer bonuses from Amex or Citi that could drop your costs even further.
Related: How to redeem Chase Ultimate Rewards points for maximum value
Iberia business class to Spain with Avios
Iberia Avios can unlock one of the cheapest ways to fly to Europe in business class.
The sweet spot
The key to this sweet spot is to fly a nonstop, Iberia-operated flight of 3,001 to 4,000 miles on off-peak dates (check Iberia’s peak and off-peak calendar). This is because Iberia uses a distance-based award chart for its flights.
Iberia operates several transatlantic flights that fall into the 3,001- to 4,000-mile distance band. As such, you can book Iberia flights between the following city pairs for just 34,000 Avios, plus modest taxes and fees:
Boston Logan International Airport (BOS) to Adolfo Suárez Madrid-Barajas Airport (MAD).
BOS to Josep Tarradellas Barcelona-El Prat Airport (BCN).
JFK to MAD.
JFK to BCN.
IAD to MAD.
While flights from Chicago’s O’Hare International Airport (ORD) to MAD are slightly outside this range, they also price at 34,000 Avios one-way in business class.
Earning Avios
There are three primary ways for U.S.-based travelers to earn Iberia Avios:
Related: 4 versions of Avios: When to use Aer Lingus, Qatar Airways, Iberia and British Airways
Qatar Airways Qsuite business class to the Middle East or Africa with AAdvantage miles
Qatar Airways has won numerous awards for its innovative Qsuite business-class product, regarded as one of the world’s best business-class experiences.
The sweet spot
If you don’t live near a Qatar Airways gateway, you may be able to find an itinerary that allows you to connect domestically in the U.S. for the same cost.
You can search for award availability online, even if you don’t have the necessary miles. Just note that award space may be difficult to come by, so check back regularly if you can’t find flights on your desired route.
Earning AAdvantage miles
There are a few American Airlines cobranded cards you can use to quickly accrue AAdvantage miles.
The information for the CitiBusiness AAdvantage Platinum Select Mastercard and AAdvantage® Aviator® Red World Elite Mastercard® has been collected independently by The Points Guy. The card details on this page have not been reviewed or provided by the card issuer.
You can also transfer Marriott Bonvoy points to American Airlines AAdvantage at a 3:1 transfer ratio. Additionally, if you pay your rent with Bilt Rewards or spend on the Bilt Mastercard® (see rates and fees), you can transfer your points 1:1 to AAdvantage. Points transfer from Bilt to AAdvantage instantly.
Related: Best uses of American Airlines miles
Cathay Pacific business class to Asia or Africa with Alaska miles
The Alaska Airlines Mileage Plan used to be one of our favorite airline programs, as the program once offered some incredible award flight sweet spots. Sadly, Alaska has removed many of its award deals, but Cathay Pacific is one of the remaining Mileage Plan sweet spots that you should book before it disappears.
The sweet spot
Flying with Cathay Pacific from the West Coast to its Hong Kong International Airport (HKG) hub will cost 30,000 miles each way in economy. If you can find available seats in premium cabins (which is difficult), you’ll pay 50,000 miles per person in business class and 70,000 miles per person in first class.
You can also continue on to several points in Asia, such as various destinations in India and Dubai International Airport (DXB), paying just 50,000 miles per person for a one-way flight in economy. Expect to pay 62,500 miles for a one-way business-class ticket and 70,000 miles for a first-class ticket.
Unfortunately, Cathay Pacific’s premium cabin seats are extremely tough to find. If you find availability, we recommend booking immediately. If you need to cancel your ticket later, Alaska will redeposit the miles and refund the taxes and fees without penalty.
Earning Alaska miles
Alaska miles aren’t the easiest to earn, as they are not linked to any major transferable program. Thankfully, Alaska’s broad list of airline partners means you can earn when flying with many different airlines.
Alaska Airlines also has two cobranded credit cards with Bank of America.
Alaska Airlines Visa® credit card: Get a $100 statement credit, 50,000 bonus miles and Alaska’s Famous Companion Fare from $122 ($99 fare, plus taxes and fees from $23) with this offer. To qualify, make $2,000 or more in purchases within the first 90 days of opening your account.
Alaska Airlines Visa® Business card: Get 50,000 bonus miles, a $100 statement credit and Alaska’s Famous Companion Fare from $122 ($99 fare, plus taxes and fees from $23) with this offer. To qualify, make $3,000 or more in purchases within the first 90 days of opening your account.
Related: Which credit card should you use for Alaska Airlines flights?
Short-haul flights on British Airways with Avios
With dynamic pricing in some programs showing up to 100,000 miles for a single flight in economy, British Airways is a good alternative. The Executive Club program offers low prices on short flights.
The sweet spot
British Airways only charges 4,750 Avios each way for off-peak flights it operates from London to destinations up to 600 miles away. This includes destinations in Ireland, Scotland, Denmark, France, Germany, Austria and Italy. Taxes will set you back just $31 (this can vary depending on current exchange rates), though you also have the option to reduce this to $1 by redeeming 9,250 Avios.
Award flights include full-size cabin baggage and checked baggage.
Earning British Airways Avios
The easiest way to earn a meaningful number of Avios for everyday spending is by applying for the British Airways Visa Signature Card. You’ll earn 75,000 Avios after you spend $5,000 on purchases within the first three months of account opening. TPG values Avios at 1.5 cents each, making the full bonus worth $1,125.
The British Airways Visa Signature has a $95 annual fee and earns 3 Avios per dollar spent on purchases with British Airways, Aer Lingus, Iberia, and Level. Plus, you can earn 2 Avios per dollar spent on hotel accommodations when purchased directly with the hotel. All other purchases earn 1 Avios per dollar spent.
British Airways is also a transfer partner of Capital One, Chase Ultimate Rewards, American Express Membership Rewards, Bilt Rewards and Marriott Bonvoy, making Avios one of the easiest currencies to earn.
Points transfer from Capital One, Chase, Bilt and Amex at a 1:1 ratio (in addition to occasional transfer bonuses of up to 40%), while Marriott Bonvoy points transfer to Avios at a 3:1 ratio. Plus, you’ll get a 5,000-Avios bonus for every 60,000 Marriott points transferred.
Related: 5 reasons why you should care about British Airways Avios
Air France-KLM Flying Blue promo awards
From paid ticket sales to redemption promotions, there are endless opportunities to book travel at a discount. However, few sales are as reliable as the Promo Rewards we see each month from Air France-KLM Flying Blue.
With Flying Blue adopting dynamic pricing with highly variable rates in all classes, this monthly offer is an excellent way to save on award travel.
The sweet spot
These monthly Promo Rewards regularly appear on the Flying Blue website and offer discounts on flights to and from select cities or region pairs. All discounts are only bookable through the end of the month, and there’s a set travel window.
Each month, the destinations, discounts and classes change, so keep an eye out for what is currently available. In the past, we have seen deals like:
39,000 miles in business class from Miami International Airport (MIA) to London’s Heathrow Airport (LHR), flying KLM.
22,500 miles in premium economy class from IAD to Munich Airport (MUC), flying Air France.
11,250 miles in economy from ORD to Stockholm Arlanda Airport (ARN), flying Air France.
Earning Flying Blue miles
Boosting your Flying Blue balance is easy since the program partners with all major transferable points currencies.
You can transfer points at a 1:1 ratio from American Express Membership Rewards, Bilt Rewards, Capital One, Chase Ultimate Rewards and Citi ThankYou Rewards. You can also transfer Marriott points at a 3:1 ratio, with a 5,000-mile bonus for every 60,000 points you transfer.
Based on our tests, Amex, Bilt, Capital One, Chase and Citi transfers should post almost instantly. However, that wasn’t the case with our test transfer from Marriott, which took three days to arrive in our Flying Blue account.
Related: Is KLM premium economy worth it on the 787 Dreamliner?
Domestic United flights with Turkish Airlines’ Miles&Smiles
United’s dynamic pricing means you won’t find a set price for flights booked via the MileagePlus program. However, when there is saver-level inventory (the X fare class for economy or the I fare class for business), Turkish Airlines’ Miles&Smiles becomes one of the best options available.
The sweet spot
For any domestic flight in the U.S., including to or from Hawaii, Turkish requires just 7,500 miles each way in economy. If you’re lucky enough to find domestic first class, those award tickets only cost 12,500 miles each way.
For example, we found a round-trip ticket in economy from San Francisco International Airport (SFO) to Hawaii’s Ellison Onizuka Kona International Airport at Keahole (KOA) that only requires 15,000 Turkish miles plus $11.20 in taxes and fees.
This exact same flight would be 25,800 United miles.
The key to this sweet spot is finding saver-level inventory. You can search for these fares on United.com, though note that award tickets in any fare class other than X for economy and I for business class are not bookable through partner programs.
Earning Turkish miles
Miles&Smiles partners with a trio of programs: Capital One, Citi ThankYou Rewards and Bilt Rewards. You can transfer rewards from any of these programs at a 1:1 ratio, and our tests indicate that transfers should process instantly.
Related: The ultimate guide to Citi ThankYou Rewards
Bottom line
When it comes to making award reservations, you need certain stars to align. A little bit of flexibility is required to make the process run smoothly, and that might mean changing the dates of your trip a bit or opting for a destination with more plentiful award space. If these three things fall into place, you’ll have a solid award flight.
However, there’s a fourth element to the equation: value. If you can score one of the above sweet spots, you’re essentially guaranteed to get incredible value from your redemption.
Additional reporting by Andrew Kunesh and Ethan Steinberg.
Save more, spend smarter, and make your money go further
Daily deal websites are a dime a dozen these days, from Groupon, to Living Social and Tippr, to the hundreds of smaller sites aspiring to ride the wave of group buying success.
To be sure, the deals can be pretty great. But signing up to get all of the alerts means your inbox will be inundated with daily deal emails, not to mention the time you’ll spend sifting through to find those that meet your needs.
Enter daily deal aggregators. A handful of companies are doing the work for you by aggregating all of the Internet deals into one place. Some will send you targeted deals while others will list all of the deals per day on their site. Yahoo is even incorporating offline deals like direct marketer coupons into its service. Either way, these free services promise to take the work out of discount hunting and leave you with what you’re truly after: the discounts.
YipIt offers up recommendations
Unless you’ve been living under a rock in the past year, you’ve probably heard of Groupon and LivingSocial — the two biggest group-buying daily deal websites. But there are hundreds of smaller ones out there. YipIt, a New York-based daily deal aggregator, had mulled launching a daily deal service, but decided instead to be an aggregator, betting that the number of daily deal sites will explode — which has happened, indeed.
“It’s very easy to launch one of these deal websites so we took a bet with the new service and launched in five cities,” in February, says Jim Moran, co-founder of YipIt. At launch, YipIt counted 2,000 users. Less than a year later, it is now in twenty cities, with 85,000 subscribers.
Recognizing that people don’t want deals for the sake of the deal, YipIt customized its service so that subscribers only get offered deals that are relevant to them. Subscribers get to pick and choose their categories of interest. Let’s say you’re into spas and shopping, but don’t eat out much. YipIt will only send you deals on spas and shopping and not flood your inbox with restaurant discounts. “If we don’t find anything that matches your preferences, we won’t send it to you,” Moran says.
YipIt makes money from the daily deal websites, but Moran said the company maintains its independence and won’t be swayed to feature one deal more prominently than another. Subscribers only get seven offers a day, even though YipIt works with close to 250 sites.
“We have a team of about 15 curators that work around the country to ensure that the smaller sites still get attention,” he says.
Yahoo takes it online and off
Not to be left out of the daily deal craze, in November Internet heavyweight Yahoo announced it would be getting into the local deal aggregation market with its Yahoo Local service. Sunnyvale, California-based Yahoo inked partnerships with twenty companies to provide a combination of daily deals and discounts from local direct marketers like ValPak, which sends coupon books to people’s homes. Some of Yahoo’s partners include Groupon, LivingSocial, Gilt City and BuyWithMe. Yahoo plans to ink more partnerships going forward.
“Our strategy with this program is to build the most comprehensive store of deals available online,” says Matt Idema, vice president of Yahoo! Local. “We are trying to get every local offer available to you in one place.” Idema noted that Yahoo will use its targeting technology to make sure subscribers get coupons and deals that are relevant to them.
While Yahoo could have created its own daily deal site, Idema says an aggregation service meets a need. “Consumers don’t have time to get through everything,” he says.
Yahoo’s service is currently in testing phase. Idema wouldn’t say when it will be rolled out to the masses, nor would he disclose the ultimate destination online for this service.
Dealery.com lists them all
Dealery.com, out of New York City, is another company that is going after the aggregation market. But unlike Yahoo and YipIt, it isn’t customizing the deal for subscribers. Launched at the end of August, it currently lists all the daily deals within 14 cities from around two dozen daily deal websites. The company is constantly expanding to add more deals and more cities.
“There are so many sites and clones that once you subscribe in that circus, you are inundated with all these emails. It’s almost too much information,” says Dealery.com founder and chief executive officer Limor Elkayam.
While the competition in the deal aggregation market is heating up, Elkayam says there’s enough room for multiple players and the whole idea of a daily deal isn’t a flash in the pan idea that will quickly sputter out. But chances are, she notes, that the model of offering daily deals will go through iterations, with some companies emerging as niche players in certain areas.
“People just want to save money even if the economy is in a better position than last year,” said Elkayam “Whether the economy is good or bad, saving money isn’t a fad.”
Save more, spend smarter, and make your money go further
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This is a guest post from No Debt MBA, who is trying to pay for an MBA from a top-five business school without student loans. This is a post that asks questions but offers no answers.
My significant other and I had an interesting discussion the other night. We were trying to make plans for a week of vacation this summer and were deciding between two different options:
A cross-country trip with plane tickets where we’d spend some nights staying with friends and spend days touristing and eating out.
Driving to a nearby state or national park and camp or backpacking for a week.
I’m headed to business school in the fall, and my first tuition bill is due in a few weeks. Can you guess which option I advocated?
What can I afford? The discussion brought up an interesting question of what kind of luxuries I can afford right now. Neither vacation plan was particularly extravagant by most measures, but the first would cost over $1000 per person and the second would be under $500 per person (even if we bought new gear).
I have enough money in my savings account right now to pay either bill; however, I see that money as being earmarked for business school. I don’t have enough to pay for both years of my MBA, even when I make some reasonable projections of future income (such as next summer’s internship). Do I really want to add a $1000 vacation on top of this?
My significant other pointed out that I probably have more than enough to cover the rest of my goal and have fun if I use my Roth IRA, which I had considered as a vehicle for saving for my MBA, but also as retirement savings. I countered that raiding my retirement savings or taking out student loans for a vacation was financially irresponsible and against my values. Plus we could have a fun, but less whizz-bang vacation around here for a lot less.
Note: Before you think my significant other is crazy or a spendthrift, let me note that this trip had been under discussion for a long time. We had planned to stay with people we know to avoid most of the hotel costs, and the trip would have been paid for in cash. I’ve basically gotten financial cold feet.
Seeking balance We decided to stay local for our vacation, but I don’t think either of us felt particularly good about the discussion. The question of what I can afford will continue to be a problem since I’ll still have cash sitting in the bank to pay for next year’s MBA expenses and my basic living expenses. But my significant other will be continuing to work and has a right to be interested in maintaining a lifestyle that reflects that.
So the question is: What can I afford? How can I tell? Can I afford to eat out tonight? Go to a concert? Buy new clothes? Up our $25/week grocery budget?
It’s very important to me to meet my goal of graduating debt-free. So far, my significant other has been supportive. But there’s definitely a balance to be struck here. That balance will keep my goal sustainable and help me avoid burnout. It will also keep my significant other from going crazy and resenting my extreme frugality and goal of staying debt free.
I’ve incorporated basic living expenses into my budget estimate. I know I’ll need to buy food, pay rent and utilities, and have a way to get around. But the question is how much else can I afford. Additional expenses just make my goal harder to reach. At the same time, I don’t want to make my significant other miserable for the next two years.
J.D. has his balanced money formula, but how does something like that work (or any budget at all, for that matter) when you have no income coming in and a limited amount of savings?
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.
Zero based budgeting is a process where every dollar that comes in goes to the number one priority.
It’s an effective way of prioritizing your money and executing properly, but it can be hard to know where to start when you are just getting started with this new system.
Budgeting can be a nightmare when you don’t have the mindset and tools to make it easier.
So many people struggle with money- they are overspending on things their family doesn’t need or doesn’t enjoy, which causes stress in their lives. But if your goal is financial freedom, it’s time to learn about a new budgeting system.
If you have a desire to:
Spend less than you make
Get out of debt
Save money faster
Become financially independent
Then, you are in the right place! Let how easy and simple zero based budgeting really is!
Decide what you want your budget to achieve: a zero-based budget forces you to think about what you want your money to do, rather than just accepting the status quo.
If you want to use zero based budgeting but aren’t sure where to start, this article will guide you through setting it up in an easy and effective way.
What is zero based budgeting?
Zero based budgeting is a financial planning strategy where every dollar in the budget has a specific purpose. With this type of budget, it can be helpful for those looking to get their finances in order or who want more control over their spending.
A zero based budget is when you start from scratch every month and assign every dollar a job.
Income – Expenses = $0
You begin by calculating your income for the month, then subtracting your known expenses. What’s left is $0, which means you have to get creative with how you’ll spend the rest of your money.
You can use a zero based budget template to help make this process easier.
What are the benefits of using a zero based budget template?
There are many benefits to using a zero based budget template.
Perhaps the most obvious benefit is that it allows you to see where every penny is going. This comprehensive view gives you a clear picture of your expenses and makes it easy to identify areas where you can cut back on spending.
In addition, using a zero based budget helps individuals worry less about their financial health. Since all living expenses are accounted for in the budgeting process, there is no need to panic if an unexpected expense pops up. This peace of mind can be very helpful when trying to stick to long-term financial goals.
A zero based budget template is also easy to follow. The basic plan can be executed without any difficulty, making it a great choice for people who want a simple way to manage their finances.
How to create a zero based budget template?
A zero based budget template can be helpful in tracking your money and achieving financial goals.
There are a variety of ways to create a zero based budgeting template, and no one size fits all approach. That is why we offer a zero based budget template in our shop that you can modify to your needs.
There are a few key things you’ll need to create your zero based budget template. The first is a list of your monthly income, expenses, and savings goals for the year. This will help you stay on track and plan ahead.
The next step is to individually itemize each expense and income. This may be time-consuming but it’s crucial in order to get an accurate picture of where your money is going.
After that, it’s important to track your spending and income on a monthly basis. This will help you see if you’re meeting your goals or not.
It is important to choose the proper zero based budgeting template for your needs.
What are the 5 steps in creating a zero based budget?
There are five steps in creating a zero-based budget. This system was made popular by Dave Ramsey.
We will quickly outline the five steps to make your first zero based budget. Then, we will go into detail on creating your own zero based budget.
List your income
List your expenses
Subtract your income from expenses to reach zero
Track your expenses.
Make a new budget for the next month or pay period.
One way to ensure success by following a zero based budget is by taking small steps instead of making large changes all at once–this can be difficult for some people who are used to living paycheck-to-paycheck.
Another suggestion is to allow yourself some “fun money” so that you don’t feel too restricted while trying to adjust your spending habits.
By following these tips and using a zero based budgeting template, you can successfully get yourself back on track financially!
How to Create a Zero Based Budget
Zero-based budgeting is a system of budgeting that has been gaining in popularity since the introduction of personal computers and spreadsheets. It encourages decision-making based on values and not numbers, which is important in a time when numbers are often used to make decisions.
Zero-based budgeting allows you to start with a clean slate and create your own vision of what the future looks like.
You will need to gather all of your financial information together, including your income, debts, and expenses.
Step # 1: List out your income
The first step in creating a zero based budget is to list out all of your income.
This should include job income, side hustles, rental properties, alimony, child support, and investment income. Once you have a complete picture of your income sources, you can start to make decisions about how to allocate your money.
It is important to decide how you plan to budget your money on a monthly basis, bi-weekly basis, or by paycheck.
Step #2: Tally up your expenses
Be sure to include any regular expenses you have as well, such as rent or mortgage payments, car loans, and credit card bills.
Think of all of the budgeting categories you need for absolutely everything.
This will help you track your spending more closely and make it easier to find areas where you can cut back. Some people recommend creating as many budgeting categories as possible, including for example:
Housing
Utilities
Food
Transportation
Entertainment
Health care
If there’s something that doesn’t fit neatly into a category, come up with a name for it that will help you remember what it is. For example, “clothes” or “misc.”
You’ll also need to factor in any debts you may have.
Step #3: Get your budget to zero
Once you have a full list of your expenses, it’s time to subtract that amount from your income. Then, figure out if you are close to zero.
This is where you will likely have to make adjustments.
There are two ways to get your budget to zero- either spend less than you make (aka cut spending) or make more money.
If you want to stay out of debt and save money, it’s important to do one or both of these things. It may be difficult at first, but with a little bit of effort, you can get your budget under control and start saving for the future.
Budgeting is an extremely important tool to have in your financial arsenal. It allows you to have more control over your money and can help you make more of it. By following a few simple steps, you can get your budget to zero and start saving for the future.
Step # 4: Track your expenses
In order to be successful with a zero based budget, you have to be willing and able to track your expenses. This means being mindful of every penny that goes in and out of your account – ALL month long!
By tracking your expenses, you’re ensuring that every penny goes into the right place. This enables you to see where your money is going and how you can save in specific areas.
Expenses tracking apps allow you to easily record, categorize, and analyze your spending. They let you see how much money you spend on different categories of items from groceries to travel and more. Some of the most popular apps are Simplifi, You Need a Budget, and Qube Money.
This also makes tax season less daunting because you’ll have a complete record of all of your transactions.
You can also use this information to refine a realistic budget that works for you.
Step # 5: Make a new budget for each month or paycheck
Creating a new budget every month is an important part of zero based budgeting. This helps ensure that you are always aware of your current financial situation and can make changes as needed.
It is best to create your budget before the month begins, so you have time to adjust as necessary.
A zero-based budget is a great way to get your finances in order. It can be tough to stick to, but it’s worth it because it forces you to pay attention and make adjustments.
This is why the budget by paycheck method has gained popularity in conjunction with the zero based budgeting system.
Tips to Make Your Zero Based Budget Successful
It can be difficult to stick to a budget, but there are ways to make it happen.
Here are a few quick budgeting tips:
Make a list of your necessary expenses and stick to it.
Cut back on unnecessary spending.
Live within your means.
Find cheaper alternatives to your regular expenses.
In addition, here is what you need to make sure your money is spent where you want and not following the status quo.
You need to learn which payment type is best if you are trying to stick to a budget.
Know your End Goal
What do you want your money to do for you?
Too many times, we let life dictate how and where we want to spend money. Then, we are always chasing from behind.
To truly make your money work for you, decide on three core areas you want to spend your money. Then, make your budget reflect those values.
Understand the Flexibility of Zero Based Budget
Zero-based budgeting is a great way to stay flexible with your finances. There are no set rules to follow, and you can adapt as your life changes. The goal is to always be mindful of your spending and make sure that every penny counts.
Unexpected expenses are going to pop up from time to time, so it’s important to have some flexibility in your budget. That way, you can handle these unexpected costs without breaking the bank.
Put Most Important Expenses at the Top
When creating a zero based budget, it is important to start with the most important items and work your way down.
This ensures that you do not miss any essential expenses and that you are able to stick to your budget. It is also important to be realistic about what you can afford and to make sure that you are flexible in case of unexpected expenses.
Put in a Cushion or a Buffer
When starting a zero based budget, it is important to be realistic about what you can and cannot do.
Some people find it helpful to have a cushion in case of unexpected expenses, while others prefer to keep their spending as low as possible. It is important to find what works best for you and stick to it.
Additionally, remember that your goal should be to live within your means, not spend less than you make.
Look Ahead
When creating or following a zero based budget, it is important to be mindful of any upcoming events that may require more money.
This includes things like holidays, birthdays, and special occasions. If you know these events are coming up, you can plan for them in your budget and make sure you have the funds available.
Check out ideas for bill calendar strategies.
Sinking Funds
One of the most important things to remember is that you need to plan for big-ticket items and one-off events. This can be done using sinking funds.
Sinking funds are special savings accounts that are specifically designated for planned expenses.
You put money into the account over time until you have saved enough to cover the expense. This allows you to avoid breaking your budget when something unexpected comes up.
Learn how to use sinking funds.
zero based budgeting Example
Zero based budgeting is a way of organizing your finances in which you spend money only on things that have an actual impact on your financial situation.
This method can help you stay mindful of how much you are spending and where it is going.
It can also help you to make better decisions about what needs to be paid off, saved for, or invested in.
Here is a basic zero based budget example:
Can You Make a Zero-Based Budget With an Irregular Income?
Zero-based budgeting is an excellent way to manage your finances when you have an irregular income.
Regardless of how much money you earn each month, you can create a budget that will help you save money and make the most of your income. With a zero-based budget, every penny has a purpose and you can be sure that you are making the most of your resources.
It is also helpful to “age” your money by at least one month. That means your April income will be paying your May bills.
The Best Zero Based Budget Templates and Apps
Zero-based budgeting is a methodology of budgeting that starts with the assumption that how much one has at the beginning of each period should be used to purchase only those things needed. This is different from the traditional budgeting practice of starting with how much one has at the end of the last period and using that as a basis for what needs to happen during the next period.
There are a number of zero-based budget templates and apps that are available on the internet. The following seven are some of the most popular:
1. Tiller Money
Tiller Money is a budgeting app that allows you to create a zero-based budget. This means that every dollar in your budget has a specific purpose.
It has a “Foundation Template” feature that allows expenses to be budgeted against goals in order to make sure the amount of money actually spent is at a minimum.
This allows you to create a zero based budget quickly and easily.
You can try Tiller Money for free for 30 days, and the annual cost is $79.
2. Simplifi by Quicken
Simplifi by Quicken is a budgeting app that takes a different approach to budgeting.
Rather than starting with your current income and expenses and trying to adjust them, Simplifi starts with your savings goals and works backwards. This can be helpful for those who have trouble sticking to a budget because it allows you to focus on your financial dreams rather than your current spending habits.
You can set up your own categories, limits, watchlist, and spending plan.
It offers all of the features of Quicken with the added convenience of being able to access it on your phone or tablet.
Another thing that makes Simplifi stand out is that it is ad-free (unlike Mint), which can be helpful if you are trying to stay focused while budgeting.
Enjoy your first 30 days free and then pay as low as $3.99 per month.
3. Qube Money
Qube is an app that helps you create intentional, smart spending habits.
With Qube, you have the freedom to manage your money with real purpose. Qube helps you stay on top of your finances by giving you a clear picture of where your money is going and how much you have leftover each month.
Qube Money is a budgeting tool that helps you manage your money by automatically ledger transactions and allowing you to divvy up your money into qubes. This makes it easy for you to see how much money you have in each category and click to spend.
Get started with Basic for free with 10 qubes. Upgrade to Premium for $6.50 per month.
4. YNAB
You Need a Budget (YNAB) is a popular method of budgeting that requires you to spend money from the previous month’s income. They stress “aging your money” to break the living paycheck to paycheck method.
Each month you start from scratch each month, accounting for all of your income and expenses.
YNAB is best known for its awesome support community and training.
It offers a free trial for 34 days, after which it costs $84 per year.
Best Zero-Based Budget Template For Debt Payoff
It is useful to make a debt payoff plan that starts from the zero level. This will allow you to track your progress and adjust your budget as necessary.
Using Tally is a great tool when paying off debt.
Time for you to Start with the 0 Budgeting Method
A zero based budget is a financial planning strategy where every dollar in the budget is assigned a purpose. This differs from traditional budgeting where the focus is on last month’s spending and last year’s income.
With a zero based budget, you start fresh each month and assign every dollar a job or responsibility. This way, you can ensure that your money is being put to its best use.
When you use a zero based budget template, you are able to track every dollar that you spend.
This comprehensive view gives you a clear idea of where your money is going and where you can cut back on spending. Additionally, using a zero based budget template makes it easy to see if there have been any areas where you could save money.
The best part is you are comfortable knowing that all of your living expenses are accounted for.
This means that you can spend money without worrying about jeopardizing your financial health.
Know someone else that needs this, too? Then, please share!!
Today we’ll take a look at the top mortgage lenders in Colorado.
Interestingly, the top lender in the state isn’t a direct lender or a depository bank.
In fact, aspiring home buyers and existing homeowners can’t even work with this company directly.
Instead, they’ll need to work with an intermediary to access the loan programs offered by this behemoth of a mortgage company.
This company was also the top mortgage lender in the state of Arizona, giving them a strong foothold in the Mountain West region of the United States.
Top Mortgage Lenders in Colorado (Overall)
Ranking
Company Name
2021 Loan Volume
1.
UWM
$11.7 billion
2.
Rocket Mortgage
$9.5 billion
3.
Chase
$8.5 billion
4.
Wells Fargo
$4.6 billion
5.
U.S. Bank
$4.6 billion
6.
Homepoint
$4.5 billion
7.
Fairway Independent
$4.2 billion
8.
American Financing
$4.1 billion
9.
Pennymac
$4.0 billion
10.
loanDepot
$3.9 billion
As alluded to, the top Colorado mortgage lender last year was actually a wholesale lender that works with mortgage brokers.
This runs counter to the more traditional retail lending channel offered by big banks and household lenders like Rocket Mortgage.
Yet somehow United Wholesale Mortgage (UWM) managed to beat the competition quite easily with $11.7 billion in loan origination volume, per HMDA data from Richey May.
That was more than enough to take out national #1 overall Rocket Mortgage’s $9.5 billion, and JPMorgan Chase’s $8.5 billion.
In order to work with UWM, you’d need to enlist a mortgage broker that is approved to do business with UWM.
Seeing that UWM is the largest wholesale mortgage lender in the nation, most mortgage brokers are.
Another advantage to using a mortgage broker is that they will likely be approved with several companies, so it may turn out that they have a better option beyond UWM.
For the record, Rocket Mortgage also operates a wholesale unit so a broker could be working with both simultaneously and send your loan to the one offering the best price.
Moving on, a pair of depository banks took fourth and fifth, Wells Fargo and U.S. Bank, both with roughly $4.6 billion each.
The rest of the top 10 featured a slew of nonbank lenders, including Homepoint, Fairway Independent Mortgage, American Financing Corp., Pennymac, and loanDepot.
American Financing Corp. is the only Colorado-based mortgage lender on the list, headquartered in Aurora, just east of Denver.
Top Mortgage Lenders in Colorado (for Home Buyers)
Ranking
Company Name
2021 Loan Volume
1.
UWM
$4.7 billion
2.
Chase
$3.9 billion
3.
Fairway Independent
$2.7 billion
4.
FirstBank
$2.1 billion
5.
U.S. Bank
$2.1 billion
6.
Cherry Creek Mortgage
$1.9 billion
7.
Rocket Mortgage
$1.7 billion
8.
Wells Fargo
$1.6 billion
9.
loanDepot
$1.5 billion
10.
Guaranteed Rate
$1.4 billion
If you’re thinking about buying a home, you might be curious who the top lenders are for home purchase loans.
Some mortgage lenders specialize in both purchase loans and refinances, while others focus on just one.
When we narrow it down to just purchase transactions, UWM still retained the lead with $4.7 billion funded.
That was enough to keep Chase’s $3.9 billion at bay, and more than enough to conquer Fairway Independent Mortgage’s $2.7 billion.
Coming in fourth was Colorado’s own FirstBank with $2.1 billion, which has over 100 locations in The Centennial State.
U.S. Bank snagged fifth with roughly the same amount funded during the year.
Local mortgage banker Cherry Creek Mortgage took sixth with $1.9 billion, followed by Rocket Mortgage, Wells Fargo, loanDepot, and Guaranteed Rate.
Always good to see some local names on these lists – and it makes more sense to be in this category as home buyers tend to gravitate to more native companies for big life decisions.
Top Refinance Lenders in Colorado (for Existing Homeowners)
Ranking
Company Name
2021 Loan Volume
1.
Rocket Mortgage
$7.7 billion
2.
UWM
$7.0 billion
3.
Chase
$4.5 billion
4.
American Financing
$3.7 billion
5.
Freedom Mortgage
$3.3 billion
6.
Homepoint
$3.3 billion
7.
Wells Fargo
$2.9 billion
8.
Pennymac
$2.7 billion
9.
loanDepot
$2.5 billion
10.
Newrez
$2.4 billion
When it came to mortgage refinancing, Detroit-based Rocket Mortgage ruled the roost with $7.7 billion funded last year in the state.
However, their crosstown rival UWM (also from Michigan) wasn’t far off with $7.0 billion funded.
If Rocket served more home buyers in Colorado, they could have challenged the top spot overall.
Coming in third was Chase with $4.5 billion, followed by local mortgage banker American Financing Corp. with $3.7 billion.
And rounding out the top five was Freedom Mortgage with $3.3 billion. They tend to excel when it comes to refinance loans.
Others in the top 10 refinance list included Homepoint, Wells Fargo, Pennymac, loanDepot, and Newrez.
Top Mortgage Lenders in Denver
Ranking
Company Name
2021 Loan Volume
1.
UWM
$7.2 billion
2.
Rocket Mortgage
$5.4 billion
3.
Chase
$5.2 billion
4.
American Financing
$3.0 billion
5.
Fairway Independent
$2.8 billion
6.
U.S. Bank
$2.8 billion
7.
Homepoint
$2.8 billion
8.
Wells Fargo
$2.4 billion
9.
loanDepot
$2.3 billion
10.
Newrez
$2.0 billion
Top Mortgage Lenders in Colorado Springs
Ranking
Company Name
2021 Loan Volume
1.
Ent Credit Union
$1.8 billion
2.
UWM
$1.4 billion
3.
Freedom Mortgage
$1.3 billion
4.
Pennymac
$1.2 billion
5.
Rocket Mortgage
$1.2 billion
6.
NBH Bank
$615 million
7.
Cherry Creek Mortgage
$557 million
8.
Homepoint
$493 million
9.
loanDepot
$468 million
10.
Chase
$450 million
Top Mortgage Lenders in Fort Collins
Ranking
Company Name
2021 Loan Volume
1.
UWM
$550 million
2.
Cornerstone Home Lending
$543 million
3.
Rocket Mortgage
$510 million
4.
Chase
$344 million
5.
First National Bank of Omaha
$342 million
6.
U.S. Bank
$275 million
7.
Elevations CU
$267 million
8.
First Western Trust Bank
$259 million
9.
Homepoint
$258 million
10.
loanDepot
$249 million
Top Mortgage Lenders in Boulder
Ranking
Company Name
2021 Loan Volume
1.
Elevations CU
$1.2 billion
2.
Chase
$720 million
3.
UWM
$558 million
4.
Rocket Mortgage
$510 million
5.
Cherry Creek Mortgage
$398 million
6.
Wells Fargo
$348 million
7.
FirstBank
$305 million
8.
Homepoint
$259 million
9.
Guaranteed Rate
$247 million
10.
loanDepot
$216 million
Are Colorado’s Top Mortgage Lenders Also the Best Choice for Homeowners?
While size can matter when it comes to choosing a mortgage lender, it isn’t always a major consideration.
As noted, the top mortgage lender in Colorado isn’t even a retail company. They operate solely via the business-to-business, wholesale lending channel.
This means working with a smaller mortgage brokerage if you get a loan from UWM, which could be a single individual running their own shop.
Additionally, only one Colorado-based lender made the top-10 list, American Financing Corp.
So if you want a local lender, they might not even feature in these lists. And that’s totally fine, as long as they’re financially sound and above board.
Sure, you might find that the largest lender is also the one you like best, but they don’t necessarily need to be big to get the job done.
As always, take your time, do your research, obtain multiple quotes, and ask lots of questions before you proceed.
Welp, it’ll be nice to close out 2020 and look ahead to a brand-new year that hopefully features a lot less drama and much more good news.
While the housing market actually absorbed both the COVID-19 pandemic and the presidential election surprisingly well, we can probably thank the record low mortgage rates for that. And the continued lack of inventory.
That has been the silver lining for existing homeowners, but it’s created an even wider divide between the haves and the have-nots, otherwise known as homeowners and renters.
So what does 2021 look like when it comes to mortgages and the housing market? Let’s dust off the old crystal ball and make some predictions.
1. Mortgage rates will hit new record lows
As of this writing, mortgage rates hit 14 new all-time lows in 2020. And there’s a decent chance they’ll hit a 15th before the year is complete.
This has many pundits calling for an end to the low rates. Sound familiar? It does because every single year they call for higher rates, only to be proven wrong over and over.
I expect mortgage rates to hit new all-time lows in 2021, though the caveat is that they may not remain there.
In other words, we could see 30-year fixed mortgage rates reach levels never seen before in the first half of the year, before they rise back above lows seen this year.
The good news is rates should remain low throughout the year if the 2021 mortgage rate predictions hold true.
And that means those who haven’t yet taken advantage of a rate and term refinance can do so and save some dough.
2. Lenders will stay really busy, but won’t break 2020 records
Thanks in part to those ultra-low mortgage rates, banks and lenders will continue to be absolutely slammed.
This is wonderful news for loan originators and mortgage brokers, but not so great for consumers.
Simply put, things will still be slow, so be patient. It may take months to close your mortgage as opposed to 3-4 weeks.
This is just the way things are going right now and you should set realistic expectations if you’re currently shopping for a new home loan.
In terms of loan volume, 2020 mortgage originations will likely surpass the massive totals seen back in 2003.
The question is where does the mortgage industry go from here? While rate and term refis will inevitably become less prevalent in 2021, record home purchase volume of more than $1.5 trillion is expected.
That should keep the party going for mortgage lenders focused on home purchase financing, but it could prove challenging to those that are refinance-heavy.
3. The cash out refinance will re-emerge as a popular product
That being said, while rate and term refis will fade into 2021, the emergence of the cash out refinance could pick up the slack.
Ultimately, borrowers are sitting on a ton of home equity at the moment, the most in history I believe.
At some point, it’s going to be tapped via cash out refinance loans, even if borrowers are forced to take a slightly higher interest rate in the process.
The other big question related to this is will lenders loosen underwriting standards to make up for any decline in new business?
That’s where things went so badly wrong a decade ago, especially as home prices were peaking.
But maybe the Qualified Mortgage (and still decent affordability) will be the difference maker this time around.
4. Mortgage brokers will grab more market share
Now let’s talk about mortgage brokers. Largely forgotten post-housing crisis a decade ago, they’ve been making major strides lately.
In fact, the second largest mortgage lender in the nation, after Quicken Loans, is United Wholesale Mortgage (UWM).
And Quicken also runs a massive wholesale lending division as well, so there’s a good chance you’ll be working with a mortgage broker in 2021 and beyond.
Brokers had a near-35% market share back in 2008 before it fell to around 7% in 2011. Today, it’s closer to 16% and likely to grow back to 20%+ sooner rather than later.
One thing helping brokers today is the abundance of technology that has leveled the playing field.
Even a one-woman shop can offer a better customer experience than a billion-dollar bank thanks to the many tools now readily available.
That, along with access to wholesale mortgage rates from dozens of lending partners, could give brokers the edge going forward.
5. COVID-19 related foreclosures will free up some inventory
Everyone and their grandmother knows that housing inventory is abysmal. There’s just nothing out there no matter where it is you’re trying to buy a home.
Once something does come on the market, it’s being scooped up in record time by desperate home buyers.
The National Association of Realtors recently noted that properties typically remained on the market for just about 20 days in October, down from closer to 40 a year ago.
My expectation is that 2021 will be no different – it’s going to be a seller’s market yet again, which means you really need to do your homework and be prepared to make an offer immediately.
The only possible relief could come from COVID-19 related foreclosures, assuming those actually transpire once forbearance options fizzle out.
NAR also said distressed sales (foreclosures and short sales) represented less than 1% of home sales in October, which was down from 2% in October 2019.
Take the time to research how mortgages work and get pre-approved so you’re ready to make your move at a moment’s notice. But also still do your due diligence and don’t buy a home sight-unseen.
6. Home prices will continue to surge higher
That critical lack of inventory, coupled with the still-low mortgage interest rates will lead to even higher home prices in 2021.
It’s pretty simple really, just a matter of supply and demand.
Speaking of, unsold inventory remains at an all-time low of 2.5-months at the current sales pace, which is well below the near-4-month figure seen a year ago, per NAR.
As such, the Realtor group expects existing home prices to rise a further 5.7% in 2021, and that might be conservative given the red-hot housing market combined with an ongoing pandemic.
Again, excellent news for those who already homes, but another unwelcome development for the many prospective first-time home buyers out there.
7. iBuyers will regain market share and usurp real estate agents
Despite a housing market that will remain on fire in 2021, I expect iBuyers to continue to gain market share.
They got derailed last spring thanks to the emergence of COVID-19, and actually stopped purchasing homes in many markets.
But now they’re not only returning to market, but also expanding to new metros nationwide.
Folks love convenience, even if there’s a cost. And when it comes to iBuying, the cost is likely a lower sales price, meaning you walk away with less.
However, home sellers may be skittish about letting others into their homes, so going with a sure thing from an iBuyer could be just the ticket.
It also allows home sellers to pivot to a replacement property without dealing with contingencies, which are basically a no-go right now with competition so fierce.
8. Remote closings and distanced real estate transactions will be the norm
To that same end, I expect the temporary measures to keep real estate distanced will become more of a mainstay in 2021.
So those remote closings, appraisal waivers and other flexible appraisal options, along with new methods to document income and verify employment before loan closing should continue.
Additionally, we should see more technology that supports these efforts, which is a nice silver lining of the pandemic.
All the promises about making the mortgage process easier may come to fruition a lot sooner because no one wants to be near each other.
However, as noted, it’ll still take a while to get a home loan because lender capacity will remain an issue well into 2021.
9. Home remodeling will remain white-hot as homeowners stay put and spend more time at home
One trend that we saw this year will also extend into 2021, and could in fact become even more popular. I’m talking about home remodeling.
Have you tried to book a contractor lately? Good luck! They’re all busier than ever because homeowners are spending more and more time in their properties.
That has made many of us question if we should upgrade our digs, or get to those projects we’ve been putting off for years.
Most existing homeowners don’t seem to be going anywhere, as evidenced by that lack of inventory and those low mortgage rates, so they’re fixing up what they’ve got.
While you might be considering a home equity line of credit to pay for your home improvements, a cash out refinance that features a fixed interest rate could be the better option.
10. The exodus out of urban centers to the suburbs will stay on trend
Lastly, I expect the urban exodus to continue in 2021, even if the vaccine proves successful and we get our heads back above water.
The damage of 2020 on our psyches is already done, which means some just won’t consider the urban lifestyle anytime soon, or ever again.
Once forgotten, the suburbs are back with a vengeance thanks to COVID-19, and the pandemic perhaps served as a not-so-gentle reminder that more space and fresh air isn’t such a bad thing.
Sure, urban living has its advantages, but its fragility has also been exposed big time.
And with remote work and less commuting no longer just a trend, it makes a lot more sense to be anywhere, even far from a city center.