Paying More Today Won’t Lower Future Monthly Mortgage Payments

Posted on February 24th, 2021

Just about everyone with a home loan ponders the idea of paying a little extra, whether it’s via biweekly mortgage payments, or just once a year after receiving a sizable bonus or tax refund.

Whatever the method, you should first consider why you’re thinking about paying your mortgage off early as opposed to putting the money elsewhere.

This is a particularly important question to ask in the super-low mortgage rate environment we’ve been enjoying for some time.

Simply put, mortgage borrowing is really cheap, and probably the least expensive debt you’ve got, so prioritizing it over other debt may not make sense.

For example, if you have student loan or credit card debt, it might be more beneficial to pay that off first.

Anyway, assuming you do decide to make extra mortgage payments, whether significantly larger or just a little more than required, your next monthly payment won’t be affected by the previous payment.

You will still owe what you owed the month before, regardless of your principal balance being smaller.

While this might sound unfair, it all has to do with math and the fact that a mortgage is an amortizing loan.

A Mortgage Is an Amortizing Loan with Equal Monthly Payments

  • Most mortgages have a set loan term in which they are paid off in full
  • Fully-amortizing payments consist of a principal and interest portion
  • The monthly payment amount typically doesn’t change unless it’s an ARM
  • But the portion that goes to principal/interest will adjust over time as your loan is paid off

Traditional mortgages are paid off over a certain set time period with regular monthly payments that consist of a principal and interest portion.

This total payment amount does not change (barring an ARM adjustment or negative amortization) regardless of whether you pay more than is due each month.

The only thing that changes over time is the composition of your mortgage payment, with the portion going toward principal increasing over time as the loan balance falls.

As more goes toward principal, less go toward interest – picture an old-fashioned balance scale where one side drops while the other rises.

Let’s take a look at an example to illustrate:

Mortgage amount: $100,000
Mortgage interest rate: 5%
Loan type: 30-year fixed
Monthly payment: $536.82

In this example, your monthly mortgage payment would be $536.82 per month for 360 months.

The very first payment would allocate $416.67 toward interest and the remaining $120.15 would go toward principal.

This right here illustrates how interest on mortgages is front-loaded, with about 78% of the payment going toward interest and doing nothing to pay down the loan balance.

To calculate the interest portion, simply multiply 5% by $100,000, and divide it by 12 (months). The principal portion is the remainder, as noted above.

For the second payment, you need to use an outstanding balance of $99,879.85 to account for the principal amount paid off via payment one.

So to calculate interest for the second payment, you multiply $99,879.85 by 5% and come up with $416.17. This is the interest due and the remainder of the $536.82 payment goes toward principal.

Over time, the interest portion decreases as the outstanding balance decreases, and the amount that goes toward principal increases.

Pay More Each Month and the Payment Composition Will Change

payment composition

  • While paying more than necessary won’t lower the minimum amount due on your next mortgage payment
  • It will change the composition of all future payments thanks to a lower outstanding balance
  • This means you’ll save on interest and reduce your loan term despite owing the same each month
  • In other words paying extra is well-suited for those looking to save money long-term, not to obtain payment relief

If you make some additional payments, the outstanding loan balance will drop prematurely based on the original amortization schedule.

But instead of your monthly mortgage payments decreasing, the composition of your next payment (and the payment after that) becomes more principal-heavy.

In other words, the payment due would still be $536.82 the next month, but more of it would go toward principal (paying down your balance).

And for that reason, less interest would be paid throughout the life of the loan, and the mortgage would be paid off ahead of schedule. These are the two benefits of making larger payments.

The obvious downside is you wouldn’t enjoy lower payments in the future, which could be an issue if money becomes unexpectedly tight, especially seeing that you used it to pay your mortgage down quicker.

Instead, more money is essentially locked up in your home until you either sell the property or refinance and pull equity (cash out refinance).

Recast or Refinance If You Want to Lower Future Payments

  • As noted extra payments alone won’t lower future ones
  • The only way future mortgage payments will drop is if you recast your loan or refinance it
  • Make sure you have money in the bank after making any extra payments
  • The money could be trapped in your home and unavailable for other more pressing needs

If you made additional payments and want subsequent monthly payments to be lower, you have two options to get payment relief.

You can refinance the loan, which would also re-amortize the loan based on a brand new loan term. Of course, if you’re well into a 30-year loan, you’ll reset the clock if you go with another 30-year term.

That’s why it’s recommended to go with a shorter term loan when refinancing such as a 15-year fixed mortgage, which kind of defeats the purpose of lowering monthly payments.

The other option you might have is to request a “loan recast,” where the lender re-amortizes the loan based on the reduced principal balance.

This generally only makes sense if you make a sizable extra payment, something that would really change the payment structure of the loan.

In fact, some banks may only offer a recast it if you make a certain lump sum payment that cuts a certain percentage off the loan. They’ll also charge you a fee to do it in most cases.

So while both a refinance and a recast can lower monthly payments, you have to be careful not to tack on more costs as you attempt to pay your mortgage down faster.

At the end of the day, it can be very worthwhile to make larger payments even if your subsequent payments don’t change, just make sure you have money set aside for a rainy day.

Source: thetruthaboutmortgage.com

When Should You Start Looking for a House?

The short answer: Immediately. That is, if you want to buy a home at some point in the next year, or any time thereafter.

We’ll get into the specifics in a moment, but there’s really no sense in waiting if you want to own a home or condo because it’s always going to be a lengthy process.

Sure, once you find “the one” it might only take a month, or even less, to close escrow, thanks to new technologies that are making the actual transactional piece faster.

But the transaction is just one slice of the pie, and usually the fastest part. Personally, whenever I’ve looked for real estate, it’s been a long, long search. We’re talking many months if not a year or longer.

Consider All Aspects of the Process

home buying timeline

  • Decide you want to buy a home (might be a long or short process)
  • Determine if you’re able to (seek out mortgage pre-approval)
  • Might need additional time to save for down payment and/or improve credit
  • Start looking at listings (set saved searches and alerts)
  • Find a real estate agent to work with (can be early on or late in the process)
  • Attend open houses, tour properties, and find one you like
  • Make an offer the seller accepts
  • Conduct inspections
  • Secure financing and close your loan

It’ll Probably Take You Over a Year to Find a Home

If we count the time from when you begin house hunting until your home purchase loan ultimately funds, there’s a decent chance 365 days will have elapsed.

I’m talking the day you first set your filters on Zillow/Redfin until the time the mortgage lender congratulates you on being a homeowner with an oversized key.

Does this mean each and every day is going to be consumed with home shopping? No, not at all. In fact, there might be days or weeks at a time during that span when nothing is brewing.

Your desired market could lie dormant if no new listings appear that fit within your specific parameters.

Of course, this is technically part of the process too. Waiting. And keeping an eye on things even when nothing is happening.

The good news is this will give you more time to prepare as a homeowner, especially if you’re going to be a first-time home buyer.

First Make Sure You Qualify for Home Loan Financing

  • The mortgage should come before the house
  • Not the other way around as some may lead you to believe
  • Know you can actually obtain financing and at what price point
  • Then start looking at suitable properties to ensure you don’t waste your time or anyone else’s

I’ve written an entire post about this, but I’ll reiterate here again. It’s probably not a good idea to start searching for a home until you know you qualify for a mortgage, assuming you’re not paying cash.

You wouldn’t shop for a new car if you didn’t have a steady job and money in the bank, so why shop for an even larger purchase without knowing where you stand?

Fortunately, it’s pretty easy to get a mortgage pre-approval, and even easier to get pre-qualified, though the latter isn’t worth a whole lot.

Either way, make sure you do one of the two to at least get a ballpark estimate of what you can afford. And to determine if there are any red flags that need to be addressed early on.

Credit is usually a biggie, and one that can take months to resolve if there are any glaring issues. Or if you simply need time to up your credit scores for more favorable mortgage rate pricing.

Anyway, once you know how much house you can afford, and that you’re more or less eligible for a home loan, you can begin your property search.

Set Up Your Property Searches and Get Email Updates

  • Only after you know you can obtain a home loan
  • Should you begin searching for properties in your price range
  • Companies like Zillow and Redfin are handy and offer nearly real-time updates
  • They allow you to set alerts and receive instant or daily emails when new properties hit the market

One of the best ways to search for a property these days is via Zillow or Redfin. Assuming they cover your particular metro, pretty much every house, condo, and townhome will be listed.

You’ll have a ton of key information at your fingertips, including listing price, days on market, number of bedrooms and bathrooms, square footage, sales history, recent comparable sales, and most importantly, pictures!

Most home sellers throw up 20-50 photos or more, so you can do most of your home shopping from the comfort of your own abode before even thinking about a tour.

The good thing about these sites is you can set up filters and saved searches, then elect to receive targeted emails daily or instantly.

So the minute something new pops up, you’ll receive an alert. Or you can wait and get all new listings for that day in one shot.

Assuming you followed step one and got pre-approved for a mortgage, while simultaneously getting all your ducks in a row otherwise, you’ll be ready to pounce at a moment’s notice.

And these days, with the real estate market so hot, you might not get a chance to hesitate (see my 2021 home buying tips for more on that).

However, for most folks, the search process will take over a year, so there’s not necessarily a big rush.

Tip: If it’s a pocket listing or for some reason not on the MLS, the property may not show up on these websites. But this is less likely and even then, it may not be what you’re looking for or readily available.

Select an Experienced Real Estate Agent

  • Most home buyers will use a real estate agent to get the job done despite there being other options
  • You can choose to work with one early on in the discovery process
  • Or do the pre-qualifying and home shopping on your own before selecting one
  • Then you can have them come in just for the negotiation and paperwork when you find a house you like

Another thing you’ll need to take care of along the way is choosing a real estate agent to work with, that is, if you don’t go it alone.

Most home buyers work with agents, so there’s a good chance you will too. Add this selection process onto your home search timeline.

It can happen while you’re looking at prospective homes, or once you’ve already found one. You might know an agent and just tell them to be ready for you once you find your ideal home.

Or you might want some more hand-holding and seek out an agent without delay, who hopefully will get you organized and prepped immediately to avoid any missteps.

I like the idea of doing some stuff on your own first without any input from interested parties so you can explore and figure things out without bias.

But everyone is different and may not have the time, patience, or ability to do so.

Anyway, an agent can send you updates when new listings hit the market as well and basically be a more hands-on guide if you want/need it.

They can take part immediately or enter the conversation at a later date. It’s really up to you on how they fit in.

Tip: You can fly solo and once you find a home you like, use the listing agent as your buying agent to perhaps give you a leg up on the competition. Just be sure they have your best interests in mind too.

There Are Plenty of Houses in the…

  • It’s easy to fall in love with a house at first sight
  • And experience major FOMO along the way
  • But you’ll probably see 10+ properties in person
  • Before finding the right one (so try to temper your emotions)

I think we all have a tendency to fall in love with the homes we see in person, especially as first-timers, but it’s important to physically visit multiple properties to gain perspective.

These days you can see 50+ photos of a property before committing to a tour. So if you’ve made it that far there’s a good chance you’re into it.

Sure, you can arrive at the property in question and be completely underwhelmed, but if do like what you see, it might be hard to walk away.

And even harder not to imagine yourself living there. And decorating it exactly how you wish.

The best line I can think of here is that there are plenty more fish in the sea. Don’t get caught up on that first property, or any property in particular.

Aside from potentially overpaying, often times, you’ll look back and be grateful that you didn’t buy that one house, or you’ll be glad you got outbid by another buyer, etc.

You might get lucky and find that right house in a week, but chances are you won’t. Or it might just feel like the right one until you dig deeper and see more of what’s out there.

Tip: Per the National Association of Realtors, buyers see an average of 10 homes before making an offer. So prepare yourself mentally.

Okay, So How Long Does It Take to Buy a House?

  • The average time it takes to find a house might be 4-6 months
  • But it depends when we actually start the clock
  • Many buyers dip their toes for a while before getting more serious
  • We also have to factor in the many steps including financial prep, selecting an agent, house hunting, and loan closing

While results will vary, maybe tremendously, most industry experts say it’ll take anywhere from four to six months to buy a house, if not longer.

Thing is, it depends when the clock starts ticking. Do we start counting when you first open the Redfin or Zillow app, or do we start counting once you’ve met with a real estate agent?

These days, prospective buyers do a lot on their own before making contact with anyone. Or making it known that they’re even in the market to buy.

They may go through their own little discovery period where they weigh the pros and cons of homeownership, potentially for months.

As noted, it’s advisable to get in touch with a bank, lender, or mortgage broker just to know you qualify for a mortgage. Technically, this could count as the start of the home buying process.

The real estate agent part can be put off until you get more serious about buying a home because of the technology available these days.

We no longer need to be driven around the neighborhood by a friendly real estate agent in their Mercedes-Benz.

So really, the agent can come in during the late stages and help you close the deal, maybe only working with you for a month or so with the offer, paperwork, inspections, and loan closing.

But chances are they’ll come in earlier and send you listings or be on the lookout for properties that might make sense.

Then we have to take into account the home loan process, which can take anywhere from 30-45 days or longer.

If we round that up to two months and add a couple months of looking, we’re already around four months.

But the odds of finding your dream home in two months might be quite low if you’re a picky buyer, which you should be in most cases.

In reality, you could be looking for six months before you find something you like, then once you submit an offer and get your mortgage, it’s seven or eight months.

Factor in the time you were thinking about buying a home for a few months before that, the general financial preparation (saving for a down payment, getting credit in order, etc.), and the pre-approval piece, and you’re at a year in many cases.

To summarize, it going to take a while, and that’s totally okay. It’s not a process that should be rushed.

In fact, the more time that goes by, the more knowledgeable you should become. And you can mentally prepare for homeownership at the same time. That’s a good thing.

Read more: When should I buy a house?

Source: thetruthaboutmortgage.com

Why Everyone Over 30 Should Start Thinking About Life Insurance

I don’t like to make generalizations too often, but I do feel that everyone over 30 should start thinking about the importance of life insurance. That is, if you’re 30 and over and don’t have any life insurance.

No one likes to think about their demise, but life insurance is an extraordinary product that can be used to reduce the financial burden you could leave behind for loved ones. Plus, different types of life insurance can even help you build wealth and diversify your assets.

Here are 4 important reasons why everyone over 30 should start thinking about life insurance.

The Insurance At Your Job is Probably Not Cutting It

By now you probably realize the life insurance coverage that your job offers is not enough. Some employers include life insurance in their list of benefits which is great, but the coverage amount often doesn’t come close to your insurable need.

Your insurable need represents how much life insurance you should hold depending on factors like your age, liabilities, health conditions, and so on. One common rule of thumb is that your average life insurance coverage amount should be 7 to 10 times your annual income.

So if you’re earning $60,000 per year, you might want to consider a policy of $420,000 to $600,000 depending on your needs. However, the average employee life insurance policy amount is only around $25,000 to $50,000 or one years’ salary. This is not nearly enough.

Plus, when you leave your job, you’ll lose your insurance benefits too. This is why it’s always important to consider having your own life insurance coverage independent of your employer. So many people are switching jobs every 2 to 3 years so you may not want your life insurance benefits to be tied to your employer anyway.

Term life insurance is pretty affordable and you can get a free quote in just a few minutes from Bestow.

Here are 4 important reasons why everyone over 30 should start thinking about life insurance. Click To Tweet

You Want to Protect Loved Ones From a Financial Burden

You don’t have to be married with kids and a house to want to consider life insurance. However, more people in their 30s do focus on settling down and working toward some of these milestones.

If you do have kids, a mortgage, etc. you’ll definitely want to consider how your partner would get by if anything did happen to you. Would the kids still be able to go to college? Would your spouse be able to keep the house? These are important questions that life insurance can help you answer.

Even if you’re single and at the height of your career. More people in their 30s are carrying debt like student loans and personal loans. Did you know that some types of student loan debt can not be forgiven even if you died? You probably don’t want to pass on any financial burdens to your parents or other loved ones who would have to fit the bill.

Life insurance provides a tax-free payment to your beneficiary which can help cover everything from debt payments, loss of household income, funeral arrangements, and more.

RELATED: How Much Life Insurance Do You Really Need

30 Is Still Young Enough to Lock in Affordable Rates For Whole Life Insurance

Let’s say you’re considering the importance of life insurance. Whole life insurance in particular. Whole life insurance is permanent insurance that builds cash value as you continue to pay your premiums.

Other types of insurance, like variable whole life, even allow you to invest some of the cash value and grow the amount faster. You can borrow from your cash value, use it to pay your life insurance premiums, or even withdraw it while you’re still alive and well.

While whole life insurance is cheaper than term life, costs increase around the board as you get older. If you’re considering whole life insurance, the best option is to get a policy while you’re younger. Thirty years old is not too old to still get a decent rate for your life insurance premiums. Plus, it allows you enough time to build cash value that could be put to use in the future.

Get Insured and Protected From Medical Issues

Yes, life insurance is geared toward providing financial relief for your loved ones. Depending on your policy, you may be able to obtain something called ‘living benefits’. Living benefits are an insurance rider (which means it’s an added on feature) that can be added to your term or whole life insurance policy.

Living benefits can allow you to use some of your life insurance coverage amount to pay medical expenses for a serious illness or condition. Of course, this will reduce the benefit provided to your beneficiary, but it can still be a helpful feature to help you cover medical bills that could otherwise be left for your loved ones to deal with anyway.

No one likes to think about getting sick or becoming terminally ill, but planning for the best and worst is just a part of adult life. As you get older, your health tends to decline but if you’re still healthy in your 30s, it’s the perfect time to lock in a life insurance policy and consider adding a living benefits rider.

RELATED: Should You Get Disability Insurance? 4 Ways to Decide

Summary

Life insurance should be apart of everyone’s financial plan. Knowing the importance of life insurance can be life-saving information. If you’re over 30 and still don’t have coverage. Consider all the reasons to get a term or whole life policy. Consider your current future needs and carefully weigh the pros and cons.

Remember, you can get a free no-obligation quote from Bestow in just two minutes.

Source: everythingfinanceblog.com

Should You Buy a New Home or an Old Home?

It’s time for another match-up, this time we’ll compare buying a new home versus purchasing an old one.

For the record, some home builders refer to existing homes as “used,” which sounds kind of silly considering we’re talking about a house and not a car.

Ultimately, it’s a marketing gimmick to sway you toward buying new as opposed to old, but let’s continue on to determine the pros and cons.

Millennials and Gen X Are Big on New Homes

types of home buyers

A recent report from the National Association of Home Builders found that interest in newly-built homes has surged.

They noted that during the fourth quarter of 2020, 41% of prospective buyers were searching for a newly-built home, double the 19% share a year earlier.

At the same time, the share interested in an existing home fell from 40% to 30%.

It’s even more pronounced when we break it down by generation, with 50% of Millennial and 48% of Gen X buyers looking to buy a new home.

Meanwhile, just 13% of Boomers indicated that they were looking for a new home vs. existing.

Interestingly, Gen Z is a little more into existing homes than Boomers with a 38% share, but still below that of Millennials and Gen X.

New Homes Are Untouched and Clean

  • The number one reason to buy a new home is probably the fact that it’s never been lived in
  • Some people may not like the idea of living somewhere that was previously occupied
  • It also might feature the newest amenities such as improved insulation and solar panels
  • And in theory you shouldn’t have to repair or renovate anything right away

The most obvious benefit to buying a new home as opposed to an old, existing, or used one is the fact that it’s brand spanking new.

It’s untouched, it’s clean, everything is in good working order and nothing needs to be repaired. At least that’s the hope.

That’s a pretty huge incentive to buy new. You won’t have to worry about the typical costs of homeownership for the first several years, right?

Another benefit to buying new is that the home (or townhouse or condo) should have all the latest amenities.

Remember when it was all the rage to have stainless steel appliances and granite countertops?

Well, today’s new homes come with solar panels, energy-saving windows, smart appliances, USB outlets, electric vehicle charging stations, thermostats and door locks you can control with your phone, and other features that might make your used home look really old, especially a few years down the line.

Aesthetics aside, these upgrades could actually save you a lot of money each year on utility costs because they’re designed to be cost-efficient, not just handy.  You might even get a tax break!

Not only that, but many of these new homes use low-VOC paints and flooring, which are supposedly better for your health. Who knows what lurks in some of the older homes?

Additionally, new home buyers often get the opportunity to fine-tune the home they buy by selecting certain features, colors, styles, etc., and even financing any add-ons into the mortgage loan amount.

It Can Be Easier to Buy a New Home

  • It might be easier to finance a new home with a mortgage
  • Home builders often have their own home loan divisions
  • So they’ll be motivated to work with you to get the deal done
  • But still take the time to shop around and negotiate since you don’t need to use their preferred company

And speaking of mortgages, most home builders have their own financing departments that make it easy to get a mortgage.

Whether it’s the best deal is another question, but if you simply want in, your odds are probably better with a new home.  After all, the builder has a vested interest to get you financing.

There’s probably also a lot less competition for a new home, seeing that you’re probably checking out a brand new neighborhood full of vacant homes to choose from.

This can be a huge advantage in a seller’s market, which we’re experiencing at the moment. Instead of a bidding war, you might be able to pick and choose from a selection of available properties.

You can even pick among different sizes and floor plans to get just the right amount of space, as opposed to having to conform to what’s available in the existing market.

You might be thinking, hey, this sounds great, sign me up now! Why on earth would I want a used home with dodgy popcorn ceilings and laminate countertops?

But wait, there’s more to homes than their shiny exteriors and what’s inside.

Don’t Forget About Location…

  • Location is and will always be the biggest property value driver
  • And new construction homes are often in less desirable areas
  • Or in the outskirts of urban areas because that’s where new land is available
  • Be sure to take that into consideration as a major tradeoff to buying a new home

Let’s face it; the old adage that location is everything in real estate is true. It’s always been true, and always will be true. That is, if you want to see your property actually go up in value.

And guess what. Brand new homes often ren’t being built in the best locations. When it comes down to it, there’s no space for a new development in an established or central location.

Sure, you might see a new condo development, but new homes most likely won’t be that central. They’ll be on the outskirts of town, or in a “trendy” or “up-and-coming” area.

In other words, there’s going to be a commute if you buy new, and the location might be questionable at best in terms of value.

There might even be multiple new developments surrounding yours, with tractors and hammering construction workers doing what they do all day long.

That being said, it is possible to buy a new home in an area that flourishes. One hint it’s the right area might be the stores that are built nearby, such as a Whole Food’s or Trader Joe’s.

Of course, with an existing or used home, you can buy in the heart of the city, or in an area you know well that is insulated by a lack of available space and construction.

That buffer means the property should hold up well in terms of value, even during a downturn, assuming the area isn’t subject to obsolescence.

A used home might also give you the ability to walk to work, or to popular restaurants, bars, shops, and so on.

At the same time, a used home doesn’t necessarily have to be old inside. If you shop around, you might be able to find an old home that has already been remodeled to your liking.

And even if it hasn’t, that shouldn’t stop you from buying it and making renovations if it’s got good bones.

New Homes Are 20% More Expensive

  • Ultimately you pay a premium for a new home (just like a brand new car)
  • Apparently the cost is 20% more on average per a study from Trulia
  • So while a new home might be cheaper with regard to maintenance and renovation
  • You still need to consider the upfront cost to get an apples-to-apples comparison

A while back, Trulia determined that new homes (built in 2013-2014) cost roughly 20% more than similar existing homes.

They also found that two in five Americans would prefer to buy a new home, compared to just 21% opting for an existing home and 38% declaring no preference.

But when it came to that 20% markup, only 17% would actually pay the premium to get the new house.

So to get this straight, you might have to pay 20% for a new home AND you won’t be in a central location.

You’ll be in an untested location that might wind up being a ghost neighborhood in a decade if things don’t work out as planned.

During the most recent housing crisis, a lot of new home communities were hit the hardest, whereas existing homes saw their values decline but prop back up over time.

Of course, if you opt for new you’ll probably have all the latest technology and no major issues.

And if you go with an older home, you might have major bills on your hands when the roof gives out, or you discover serious plumbing issues.

So you’ll need to do your due diligence when buying an old home to ensure the property is in adequate shape. This means paying for a quality inspection (or two).

Then again, I’ve heard really negative stuff about new homes too, with many claiming workmanship has gone to you know what these days.

In other words, you’re not out of woods if you buy new either, though there might be some kind of warranty in place for a while.

At the end of the day, it’s probably okay to consider both new and used homes when looking for a property, and including both types should increase your odds of finding a winner.

As long as you take the time to inspect the property and the neighborhood, negotiate the right place, and make sure you can afford the place, you should be okay.

Lastly, you should make sure you actually want to own as opposed to rent because owning comes with many more responsibilities, whether you buy new or used.

Advantages to Buying a New Home

  • Brand new, clean, no major issues
  • Move-in ready (no wait or work to be done)
  • Cool new technology
  • Green features could reduce utility costs and/or provide tax incentives
  • Trendy design
  • Ability to customize
  • Can finance additions into mortgage
  • Possibly easier to get financing with home builder
  • Less competition, more choices on floor plans

Disadvantages to Buying a New Home

  • More expensive than buying used
  • Location probably isn’t ideal
  • Despite being new, workmanship might be questionable
  • Could be subject to costly HOAs, even if it’s a house
  • Neighborhood dynamic is unknown
  • Property values might be more volatile
  • Construction nearby (eyesore and noisy)
  • More cookie-cutter, less unique

Advantages to Buying an Existing Home

  • Possibly cheaper
  • Better, more central location
  • Can buy in an established school district
  • Can own in a more reputable and recognized neighborhood
  • Old house might have new upgrades
  • You can always renovate if need be
  • Older houses tend to have more character, custom design
  • Could actually be built better than a new home

Disadvantages to Buying an Existing Home

  • Harder to find an existing home (less inventory)
  • Might have major problems you don’t initially notice
  • Financing could be tricky (if unpermitted work, etc.)
  • Could still be more expensive than buying new
  • Fewer amenities, especially as homes get more tech-integrated
  • The neighborhood might be in decline
  • More competition to get your offer accepted
  • Might have to settle for a smaller, less ideal home to get right location

Source: thetruthaboutmortgage.com

Here’s How Much Teachers Are Paid in Every State

Teacher in a classroom
Monkey Business Images / Shutterstock.com

The coronavirus pandemic rages on, but one way or another, teachers returned to work last fall and have continued doing their jobs throughout this school year.

Elementary school teachers in the U.S. earned an average annual wage of $63,930 as of 2019, according to the U.S. Bureau of Labor Statistics. Middle school teachers earned an average of $63,550 at that same time. High school teachers averaged $65,930 per year.

But teacher pay varies considerably by state. States also vary as to which level pays best. Often, elementary school teachers make less than their middle school and high school counterparts, but not always.

Following are the average annual wages for elementary, middle and high school teachers in each state. The states are ranked based on elementary-school pay.

50. Mississippi

Mississippi road sign
Peek Creative Collective / Shutterstock.com

Elementary school teachers:

  • Average annual wage: $44,060
  • Employment: 12,340

Middle school teachers:

  • Average annual wage: $48,170
  • Employment: 6,180

High school teachers:

  • Average annual wage: $46,580
  • Employment: 8,850

49. South Dakota

Teacher in a face mask explaining math
Deliris / Shutterstock.com

Elementary school teachers:

  • Average annual wage: $44,110
  • Employment: 4,070

Middle school teachers:

  • Average annual wage: $44,990
  • Employment: 1,920

High school teachers:

  • Average annual wage: $44,610
  • Employment: 3,500

48. West Virginia

Monkey Business Images / Shutterstock.com

Elementary school teachers:

  • Average annual wage: $45,390
  • Employment: 5,330

Middle school teachers:

  • Average annual wage: $47,570
  • Employment: 5,160

High school teachers:

  • Average annual wage: $47,610
  • Employment: 4,460

47. Arizona

Asia Images Group / Shutterstock.com

Elementary school teachers:

  • Average annual wage: $45,600
  • Employment: 23,290

Middle school teachers:

  • Average annual wage: $45,120
  • Employment: 12,330

High school teachers:

  • Average annual wage: $50,320
  • Employment: 16,990

46. Oklahoma

sevenMaps / Shutterstock.com

Elementary school teachers:

  • Average annual wage: $45,970
  • Employment: 17,980

Middle school teachers:

  • Average annual wage: $46,360
  • Employment: 8,320

High school teachers:

  • Average annual wage: $47,320
  • Employment: 11,680

45. North Carolina (tie)

wavebreakmedia / Shutterstock.com

Elementary school teachers:

  • Average annual wage: $48,560
  • Employment: 42,520

Middle school teachers:

  • Average annual wage: $49,620
  • Employment: 18,770

High school teachers:

  • Average annual wage: $49,930
  • Employment: 24,030

44. Louisiana

stockfour / Shutterstock.com

Elementary school teachers:

  • Average annual wage: $48,630
  • Employment: 23,670

Middle school teachers:

  • Average annual wage: $49,790
  • Employment: 7,600

High school teachers:

  • Average annual wage: $52,090
  • Employment: 14,810

43. Arkansas

Monkey Business Images / Shutterstock.com

Elementary school teachers:

  • Average annual wage: $48,800
  • Employment: 13,010

Middle school teachers:

  • Average annual wage: $50,720
  • Employment: 6,450

High school teachers:

  • Average annual wage: $51,870
  • Employment: 11,940

42. Idaho

Teach online
Agenturfotografin / Shutterstock.com

Elementary school teachers:

  • Average annual wage: $48,880
  • Employment: 8,380

Middle school teachers:

  • Average annual wage: $53,970
  • Employment: 1,820

High school teachers:

  • Average annual wage: $50,640
  • Employment: 6,210

41. Alabama

Young teacher using internet to remotely teach during the coronavirus crisis
Timothy Kuiper / Shutterstock.com

Elementary school teachers:

  • Average annual wage: $50,270
  • Employment: 23,650

Middle school teachers:

  • Average annual wage: $51,600
  • Employment: 10,310

High school teachers:

  • Average annual wage: $51,950
  • Employment: 15,230

40. Kansas

wavebreakmedia / Shutterstock.com

Elementary school teachers:

  • Average annual wage: $50,650
  • Employment: 16,340

Middle school teachers:

  • Average annual wage: $53,500
  • Employment: 6,630

High school teachers:

  • Average annual wage: $52,050
  • Employment: 12,310

39. Missouri

wavebreakmedia / Shutterstock.com

Elementary school teachers:

  • Average annual wage: $50,920
  • Employment: 22,850

Middle school teachers:

  • Average annual wage: $51,930
  • Employment: 11,080

High school teachers:

  • Average annual wage: $50,980
  • Employment: 30,640

38. Montana

DGLImages / Shutterstock.com

Elementary school teachers:

  • Average annual wage: $52,160
  • Employment: 4,920

Middle school teachers:

  • Average annual wage: $58,710
  • Employment: 2,070

High school teachers:

  • Average annual wage: $52,360
  • Employment: 3,670

37. Indiana

wavebreakmedia / Shutterstock.com

Elementary school teachers:

  • Average annual wage: $52,570
  • Employment: 25,530

Middle school teachers:

  • Average annual wage: $52,450
  • Employment: 11,320

High school teachers:

  • Average annual wage: $53,150
  • Employment: 21,180

36. Kentucky

wavebreakmedia / Shutterstock.com

Elementary school teachers:

  • Average annual wage: $52,660
  • Employment: 19,270

Middle school teachers:

  • Average annual wage: $53,830
  • Employment: 8,160

High school teachers:

  • Average annual wage: $55,100
  • Employment: 12,280

35. Maine

Young girl in online class with geometry teacher on her laptop
Aleksandra Suzi / Shutterstock.com

Elementary school teachers:

  • Average annual wage: $52,860
  • Employment: 5,780

Middle school teachers:

  • Average annual wage: $56,740
  • Employment: 3,230

High school teachers:

  • Average annual wage: $55,260
  • Employment: 5,400

34. South Carolina

DGLImages / Shutterstock.com

Elementary school teachers:

  • Average annual wage: $53,450
  • Employment: 22,550

Middle school teachers:

  • Average annual wage: $55,180
  • Employment: 9,790

High school teachers:

  • Average annual wage: $56,730
  • Employment: 14,050

33. Tennessee

Undrey / Shutterstock.com

Elementary school teachers:

  • Average annual wage: $53,540
  • Employment: 30,620

Middle school teachers:

  • Average annual wage: $53,880
  • Employment: 13,240

High school teachers:

  • Average annual wage: $55,060
  • Employment: 20,690

32. Iowa

iofoto / Shutterstock.com

Elementary school teachers:

  • Average annual wage: $53,950
  • Employment: 18,720

Middle school teachers:

  • Average annual wage: $55,250
  • Employment: 7,920

High school teachers:

  • Average annual wage: $56,570
  • Employment: 11,950

31. Colorado

Asian woman teacher checking homework at her desk.
Monkey Business Images / Shutterstock.com

Elementary school teachers:

  • Average annual wage: $54,670
  • Employment: 25,740

Middle school teachers:

  • Average annual wage: $54,940
  • Employment: 12,980

High school teachers:

  • Average annual wage: $56,370
  • Employment: 17,580

30. Florida

child reading
KK Tan / Shutterstock.com

Elementary school teachers:

  • Average annual wage: $55,210
  • Employment: 77,170

Middle school teachers:

  • Average annual wage: $56,640
  • Employment: 33,600

High school teachers:

  • Average annual wage: $57,880
  • Employment: 50,640

29. North Dakota

Older teach wearing a face mask in an empty classroom
vladaphotowiz / Shutterstock.com

Elementary school teachers:

  • Average annual wage: $55,630
  • Employment: 4,450

Middle school teachers:

  • Average annual wage: $59,700
  • Employment: 1,380

High school teachers:

  • Average annual wage: $56,250
  • Employment: 2,800

28. Texas

Monkey Business Images / Shutterstock.com

Elementary school teachers:

  • Average annual wage: $56,280
  • Employment: 131,880

Middle school teachers:

  • Average annual wage: $56,290
  • Employment: 64,340

High school teachers:

  • Average annual wage: $58,000
  • Employment: 107,190

27. Nevada

A female teacher in an empty classroom during the pandemic
POP-THAILAND / Shutterstock.com

Elementary school teachers:

  • Average annual wage: $56,980
  • Employment: 10,480

Middle school teachers:

  • Average annual wage: $59,150
  • Employment: 4,000

High school teachers:

  • Average annual wage: $58,090
  • Employment: 5,760

26. New Mexico

ESB Professional / Shutterstock.com

Elementary school teachers:

  • Average annual wage: $57,330
  • Employment: 7,650

Middle school teachers:

  • Average annual wage: $49,570
  • Employment: 3,250

High school teachers:

  • Average annual wage: $57,410
  • Employment: 6,880

25. Wisconsin

GagliardiImages / Shutterstock.com

Elementary school teachers:

  • Average annual wage: $57,980
  • Employment: 28,240

Middle school teachers:

  • Average annual wage: $58,940
  • Employment: 13,800

High school teachers:

  • Average annual wage: $59,180
  • Employment: 17,880

24. Georgia

Oksana Kuzmina / Shutterstock.com

Elementary school teachers:

  • Average annual wage: $58,190
  • Employment: 50,250

Middle school teachers:

  • Average annual wage: $58,830
  • Employment: 28,440

High school teachers:

  • Average annual wage: $59,860
  • Employment: 26,500

23. Wyoming

ESB Professional / Shutterstock.com

Elementary school teachers:

  • Average annual wage: $58,940
  • Employment: 2,550

Middle school teachers:

  • Average annual wage: $61,340
  • Employment: 1,090

High school teachers:

  • Average annual wage: $61,400
  • Employment: 1,690

22. New Hampshire

Monkey Business Images / Shutterstock.com

Elementary school teachers:

  • Average annual wage: $59,930
  • Employment: 6,070

Middle school teachers:

  • Average annual wage: $60,290
  • Employment: 3,100

High school teachers:

  • Average annual wage: $60,720
  • Employment: 5,000

21. Nebraska

Pressmaster / Shutterstock.com

Elementary school teachers:

  • Average annual wage: $60,390
  • Employment: 9,810

Middle school teachers:

  • Average annual wage: $62,130
  • Employment: 4,310

High school teachers:

  • Average annual wage: $60,500
  • Employment: 6,890

20. Utah

Students in a classroom during the pandemic
saravutpics / Shutterstock.com

Elementary school teachers:

  • Average annual wage: $60,660
  • Employment: 13,110

Middle school teachers:

  • Average annual wage: $63,720
  • Employment: 6,540

High school teachers:

  • Average annual wage: $61,050
  • Employment: 8,920

19. Minnesota

Monkey Business Images / Shutterstock.com

Elementary school teachers:

  • Average annual wage: $63,250
  • Employment: 22,420

Middle school teachers:

  • Average annual wage: $64,790
  • Employment: 9,730

High school teachers:

  • Average annual wage: $64,960
  • Employment: 20,130

18. Illinois

ESB Professional / Shutterstock.com

Elementary school teachers:

  • Average annual wage: $63,280
  • Employment: 64,270

Middle school teachers:

  • Average annual wage: $63,630
  • Employment: 21,700

High school teachers:

  • Average annual wage: $74,340
  • Employment: 44,810

17. Hawaii

Poznyakov / Shutterstock.com

Elementary school teachers:

  • Average annual wage: $63,360
  • Employment: 5,780

Middle school teachers:

  • Average annual wage: $63,520
  • Employment: 2,090

High school teachers:

  • Average annual wage: $62,580
  • Employment: 4,320

16. Vermont

Student in face mask raising hand
Halfpoint / Shutterstock.com

Elementary school teachers:

  • Average annual wage: $63,480
  • Employment: 3,770

Middle school teachers:

  • Average annual wage: $61,470
  • Employment: 1,030

High school teachers:

  • Average annual wage: $66,660
  • Employment: 2,770

15. Delaware

ESB Professional / Shutterstock.com

Elementary school teachers:

  • Average annual wage: $63,970
  • Employment: 3,800

Middle school teachers:

  • Average annual wage: $64,800
  • Employment: 2,200

High school teachers:

  • Average annual wage: $66,920
  • Employment: 3,330

14. Ohio

Ohio roadway sign
Joseph Sohm / Shutterstock.com

Elementary school teachers:

  • Average annual wage: $64,090
  • Employment: 57,220

Middle school teachers:

  • Average annual wage: $63,510
  • Employment: 30,880

High school teachers:

  • Average annual wage: $64,410
  • Employment: 47,510

13. Michigan

Teacher writing on blackboard
l i g h t p o e t / Shutterstock.com

Elementary school teachers:

  • Average annual wage: $69,050
  • Employment: 37,130

Middle school teachers:

  • Average annual wage: $64,920
  • Employment: 13,910

High school teachers:

  • Average annual wage: $63,000
  • Employment: 22,820

12. Washington

Kids working with robotics.
Syda Productions / Shutterstock.com

Elementary school teachers:

  • Average annual wage: $69,390
  • Employment: 30,440

Middle school teachers:

  • Average annual wage: $70,970
  • Employment: 9,430

High school teachers:

  • Average annual wage: $71,690
  • Employment: 14,810

11. Pennsylvania

Hurst Photo / Shutterstock.com

Elementary school teachers:

  • Average annual wage: $69,630
  • Employment: 57,100

Middle school teachers:

  • Average annual wage: $69,330
  • Employment: 26,460

High school teachers:

  • Average annual wage: $66,920
  • Employment: 46,130

10. Virginia

Parent and child use hand sanitizer and face masks at school
1641857584 / Shutterstock.com

Elementary school teachers:

  • Average annual wage: $69,690
  • Employment: 38,700

Middle school teachers:

  • Average annual wage: $71,920
  • Employment: 18,300

High school teachers:

  • Average annual wage: $69,070
  • Employment: 25,620

9. Oregon

Hurst Photo / Shutterstock.com

Elementary school teachers:

  • Average annual wage: $69,980
  • Employment: 15,950

Middle school teachers:

  • Average annual wage: $70,660
  • Employment: 6,250

High school teachers:

  • Average annual wage: $71,780
  • Employment: 8,840

8. New Jersey

ESB Professional / Shutterstock.com

Elementary school teachers:

  • Average annual wage: $71,880
  • Employment: 40,640

Middle school teachers:

  • Average annual wage: $73,380
  • Employment: 26,590

High school teachers:

  • Average annual wage: $78,090
  • Employment: 30,230

7. Rhode Island

wavebreakmedia / Shutterstock.com

Elementary school teachers:

  • Average annual wage: $72,310
  • Employment: 4,100

Middle school teachers:

  • Average annual wage: $75,130
  • Employment: 1,670

High school teachers:

  • Average annual wage: $75,950
  • Employment: 4,840

6. Maryland

Rawpixel.com / Shutterstock.com

Elementary school teachers:

  • Average annual wage: $75,380
  • Employment: 28,610

Middle school teachers:

  • Average annual wage: $74,400
  • Employment: 14,890

High school teachers:

  • Average annual wage: $77,050
  • Employment: 17,150

5. Alaska

Schoolboy with backpack in snow.
Romrodphoto / Shutterstock.com

Elementary school teachers:

  • Average annual wage: $75,860
  • Employment: 3,820

Middle school teachers:

  • Average annual wage: $80,730
  • Employment: 1,160

High school teachers:

  • Average annual wage: $75,820
  • Employment: 2,790

4. Connecticut

Teacher on camera during the pandemic
Hananeko_Studio / Shutterstock.com

Elementary school teachers:

  • Average annual wage: $78,070
  • Employment: 15,930

Middle school teachers:

  • Average annual wage: $79,510
  • Employment: 8,320

High school teachers:

  • Average annual wage: $78,540
  • Employment: 15,820

3. Massachusetts

racorn / Shutterstock.com

Elementary school teachers:

  • Average annual wage: $82,450
  • Employment: 31,430

Middle school teachers:

  • Average annual wage: $80,520
  • Employment: 15,910

High school teachers:

  • Average annual wage: $81,070
  • Employment: 27,120

2. California

African American woman with grade school students wearing red caps.
Rawpixel.com / Shutterstock.com

Elementary school teachers:

  • Average annual wage: $82,560
  • Employment: 164,910

Middle school teachers:

  • Average annual wage: $80,160
  • Employment: 39,780

High school teachers:

  • Average annual wage: $85,080
  • Employment: 109,840

1. New York

iofoto / Shutterstock.com

Elementary school teachers:

  • Average annual wage: $82,830
  • Employment: 92,560

Middle school teachers:

  • Average annual wage: $87,050
  • Employment: 42,010

High school teachers:

  • Average annual wage: $87,240
  • Employment: 75,360

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

Source: moneytalksnews.com

3 of the Best Items to Buy During President’s Day Sales

After the holidays there aren’t nearly as many good deals to be had. However, on top of white sales in January, the next biggest sale of the winter season is usually during President’s Day. In fact, there can be some pretty darn good discounts on some bigger ticket items. And more often than not, shopping for these items during this time of year will get you the deepest discounts. So, you should be ready ahead of time with your budget in order to have the cash on hand for these larger purchases.

Mattresses

While most of us don’t give a second thought to our mattress, we do spend approximately 1/3 of our lives on it. So, a mattress should be one of the most well thought out purchases we make. And, it can also be one of the most expensive purchases we make too. But since they are so important, it can really be worth the money to get a good one that works well for you. Therefore, a mattress is not a place to be frugal.

Of course, you can still get a really good mattress without spending a small fortune though. And during President’s Day sales is one of the best ways to do it. Some of the best places to check out ahead of time for good mattress sales are:

  • Amazon – seems crazy but they do sell mattresses
  • Bed Bath and Beyond – oddly enough, they do sell mattresses on top of everything else, and usually have some pretty good deals
  • Costco – they already give great deals to their members and sell a wide variety of different mattresses
  • Mattress Firm – great selection and really good deals during President’s Day
  • Nest Bedding – carry a wide range of mattresses, including quite a few organic options
  • Overstock – they usually have pretty good deals to begin with
  • Tempur-Pedic – similar to Mattress Firm, just different style of mattresses

The discounts will vary at each store. Some of the typical sale ranges tend to be anywhere from $100 – $300 off a mattress or up to 30% off. Some places will give you a smaller discount but throw in a few other free items, such as mattress toppers or pillows. So, it’s best to take a look ahead of time to narrow down which type of mattress you are interested in and which place will give you the best deal on that style.

Appliances

Whether we like it or not, appliances are part of our everyday life these days. And they don’t always have the life span we wish they would. In fact, depending upon the type of appliance and the make and model, the life span can range between 9-20 years, on average. And when an appliance decides to die, it affects our whole world. So, planning here is key.

When the end of life is nearing for your appliance, it’s always good to try and plan ahead. Especially since appliances can be much higher ticket items than they used to be. I can speak from recent experience because we just had to replace our dishwasher (sooner than we anticipated) and ended up spending a lot more money than I would have liked. We could have potentially waited until the President’s Day sales hit, but that would have left us without a dishwasher for almost 3 months. And with 7 of us, it’s worth it for us to have a dishwasher when it makes my life a lot easier.

Luckily, we had the funds saved up to pay for a new dishwasher when the time came. But it still hurt, nonetheless. First thing first is to have the money saved up in your emergency fund to cover the cost of the replacement appliance. Next, it’s time to shop some of the best appliance sales all year long. And some of the places that have the greatest President’s Day sales on appliances are:

  • Best Buy – they have many different appliances, and great deals to begin with, but even better ones during this sale
  • Costco – similar to their mattresses, they have good deals all year round and a vast selection of appliances
  • Home Depot – they tend to have regular appliance sales but have much deeper discounts during this sale
  • Lowes – same as Home Depot and they aggressively compete with each other for your appliance business
  • Overstock – same deal with the appliances as their mattresses

Similar to the mattress sales, these discounts will vary widely. But, the most common discounts I have found are usually between 30% – 40% off. However, some of the larger stores will also offer 0% interest for 12-24 months on their credit card sometimes. So, if they happen to be running one of those deals at the same time, you can potentially spread the payments out over a longer period of time without having to pay any interest. So this could really be a win-win!

Furniture

Furniture can be another really big-ticket item, especially if we are talking couches and dining tables. And while the life span of furniture can be exponentially longer than appliances (if you take care of them), they do tend to go out of style faster. Or if you have a house full of kids and dogs you’re boarding, that can make the furniture die a much younger death too.

Either way, when it comes time to look for things such as couches, chairs, loveseats, dining tables, coffee tables, etc, President’s Day is a great time to look. Some of the best places that I have found to find rock bottom deals on furniture during President’s Day are:

  • Big Lots – they are already known for their low prices, but they get even lower during this sale
  • Costco – once again, they have pretty much everything!
  • Kohl’s – they have some pretty good deals on their furniture lines for online purchases
  • Overstock – this is another company that seems to have everything and is very competitive on pricing in the furniture genre
  • Target – usually their furniture is more deeply discounted when shopping online than in store

And in typical fashion, these sales have a fairly wide variety of discounts. They seem to vary every year, but on average most sales seem to discount specific items anywhere between 30% – 70%. So this is one category where it is really in your best interest to shop around before you buy anything.

These are some awesome big ticket items to grab during President’s Day! Click To Tweet

President’s Day Sales Summary

Ultimately, President’s Day is a great time to find some really good deals on big ticket items. Whether you need a new mattress, new appliances or some new furniture, you may be in luck. This time of year can potentially save you the most amount of money on these items. So prepare ahead of time and make your list. And then get shopping!

What are some of the best deals you have gotten during a President’s Day sale?

Source: everythingfinanceblog.com

How Much Nurses Get Paid in Every State

Health care worker in a mask and face shield
DC Studio / Shutterstock.com

Nurses serve on the front lines of health care. Their work is tough, but fortunately it’s well-compensated. And if you are considering a career as a nurse, the good news is that the industry is growing and the pay tends to be good.

The federal Bureau of Labor Statistics estimates there are more than 2.9 million registered nurses across the country, pulling down an average annual wage of $77,460. Additionally, there are some 200,000 nurse practitioners, earning an average of $111,840, and some 697,000 licensed practical and vocational nurses, earning an average of $48,500.

But the pay varies greatly depending on where the nurse practices.

Following are the average annual wages for multiple types of nurses in all 50 states and the District of Columbia, according to the latest Bureau of Labor Statistics data, which is for 2019. The states are ranked based on pay for RNs.

51. South Dakota

Sanford USD Medical Center
Ken Wolter / Shutterstock.com

South Dakota is one of several states predicted to have a shortage of registered nurses (RNs) by 2030, according to a report by the U.S. Department of Health and Human Services. The federal agency forecasts that the state will be short 1,900 RNs by 2030.

South Dakota is also among the majority of states forecast to have a shortage of licensed practical nurses by 2030, the report found.

Average annual wage for a registered nurse: $59,540

Average annual wage for a nurse practitioner: $102,230

Average annual wage for a licensed practical or licensed vocational nurse: $38,760

50. Mississippi

Nurse
insta_photos / Shutterstock.com

Nurses aren’t the only front-line workers with relatively low average wages in Mississippi. The state ranks dead last for its average annual wages for elementary-school teachers, for police officers and sheriff’s deputies and even for cashiers, as we have reported.

Average annual wage for a registered nurse: $59,750

Average annual wage for a nurse practitioner: $110,740

Average annual wage for a licensed practical or licensed vocational nurse: $39,020

49. Alabama

Prattville Baptist Hospital
JNix / Shutterstock.com

In Alabama and nationally, nurse practitioners earn more money than multiple other types of nurses, on average. To become an NP, you must first be a registered nurse and also pursue specialized graduate education, according to the Bureau of Labor Statistics.

Average annual wage for a registered nurse: $60,230

Average annual wage for a nurse practitioner: $99,570

Average annual wage for a licensed practical or licensed vocational nurse: $39,310

48. Iowa

Hospital nurse in mask and gloves
Rawpixel.com / Shutterstock.com

Different types of nurses are most likely to work in different types of health care settings, according to the Bureau of Labor Statistics. RNs most commonly work in hospitals, and NPs in physicians’ offices. Meanwhile, licensed practical and vocational nurses most often work in nursing care facilities, also referred to as skilled nursing facilities.

Average annual wage for a registered nurse: $60,590

Average annual wage for a nurse practitioner: $109,910

Average annual wage for a licensed practical or licensed vocational nurse: $44,220

47. Arkansas

Nurse with elderly patient
Alexander Raths / Shutterstock.com

Average annual wage for a registered nurse: $61,330

Average annual wage for a nurse practitioner: $105,840

Average annual wage for a licensed practical or licensed vocational nurse: $40,760

46. Kansas

University of Kansas Hospital
APN Photography / Shutterstock.com

Average annual wage for a registered nurse: $62,450

Average annual wage for a nurse practitioner: $100,550

Average annual wage for a licensed practical or licensed vocational nurse: $44,260

45. Tennessee

Monroe Carell Jr. Children's Hospital
Travel_with_me / Shutterstock.com

Average annual wage for a registered nurse: $62,570

Average annual wage for a nurse practitioner: $96,510

Average annual wage for a licensed practical or licensed vocational nurse: $41,270

44. West Virginia

nurse
Syda Productions / Shutterstock.com

Average annual wage for a registered nurse: $63,220

Average annual wage for a nurse practitioner: $103,170

Average annual wage for a licensed practical or licensed vocational nurse: $37,500

43. Kentucky

Nurse with patient
michaeljung / Shutterstock.com

Average annual wage for a registered nurse: $63,750

Average annual wage for a nurse practitioner: $99,560

Average annual wage for a licensed practical or licensed vocational nurse: $42,740

42. Missouri

Jon Rehg / Shutterstock.com

Average annual wage for a registered nurse: $64,160

Average annual wage for a nurse practitioner: $105,050

Average annual wage for a licensed practical or licensed vocational nurse: $43,410

41. Oklahoma

Man in the hospital coughing
wavebreakmedia / Shutterstock.com

Average annual wage for a registered nurse: $64,800

Average annual wage for a nurse practitioner: $113,200

Average annual wage for a licensed practical or licensed vocational nurse: $42,090

40. South Carolina

home health nurse taking a senior's blood pressure
Dmytro Zinkevych / Shutterstock.com

South Carolina is one of seven states projected to have a shortage of registered nurses by 2030, according to the report from the U.S. Department of Health and Human Services. The federal agency forecasts the Palmetto State will be short 10,400 RNs by that year.

South Carolina is also among the majority of states forecast to have a shortage of licensed practical nurses by 2030, the report found.

Average annual wage for a registered nurse: $64,840

Average annual wage for a nurse practitioner: $100,680

Average annual wage for a licensed practical or licensed vocational nurse: $42,190

39. Louisiana

Home health aide
Monkey Business Images / Shutterstock.com

Louisiana is home to more than 19,000 licensed practical nurses and licensed vocational nurses, according to the federal Bureau of Labor Statistics. Consequently, Louisiana has a higher concentration of this type of nursing job than any other state in the nation.

Average annual wage for a registered nurse: $65,850

Average annual wage for a nurse practitioner: $106,240

Average annual wage for a licensed practical or licensed vocational nurse: $40,300

38. North Dakota

Hospital staff
Spotmatik Ltd / Shutterstock.com

Average annual wage for a registered nurse: $66,290

Average annual wage for a nurse practitioner: $110,950

Average annual wage for a licensed practical or licensed vocational nurse: $46,760

37. North Carolina

Thank you sign for health and essential workers
Darwin Brandis / Shutterstock.com

Average annual wage for a registered nurse: $66,440

Average annual wage for a nurse practitioner: $105,890

Average annual wage for a licensed practical or licensed vocational nurse: $45,880

36. Indiana

Floyd Memorial Hospital in Albany, Indiana.
Thomas Kelley / Shutterstock.com

Average annual wage for a registered nurse: $66,560

Average annual wage for a nurse practitioner: $106,380

Average annual wage for a licensed practical or licensed vocational nurse: $46,050

35. Nebraska

Essential worker
G-Stock Studio / Shutterstock.com

Average annual wage for a registered nurse: $66,640

Average annual wage for a nurse practitioner: $105,450

Average annual wage for a licensed practical or licensed vocational nurse: $44,450

34. Florida

Boca Raton Regional Hospital
Mike Kuhlman / Shutterstock.com

Average annual wage for a registered nurse: $67,610

Average annual wage for a nurse practitioner: $101,510

Average annual wage for a licensed practical or licensed vocational nurse: $45,580

33. Utah

nurse
Cryptographer / Shutterstock.com

Average annual wage for a registered nurse: $67,970

Average annual wage for a nurse practitioner: $105,240

Average annual wage for a licensed practical or licensed vocational nurse: $49,660

32. Ohio

Cleveland Clinic
Duttagupta M K / Shutterstock.com

Ohio is home to the Cleveland Clinic — which U.S. News & World Report ranks as the nation’s No. 2 hospital overall, and the No. 1 specialty hospital for cardiology and heart surgery, as we report in “The 20 Highest-Ranked U.S. Hospitals in 2020.”

Average annual wage for a registered nurse: $68,220

Average annual wage for a nurse practitioner: $103,780

Average annual wage for a licensed practical or licensed vocational nurse: $45,020

31. Wyoming

senior receiving long-term care
Photographee.eu / Shutterstock.com

Average annual wage for a registered nurse: $68,690

Average annual wage for a nurse practitioner: $118,110

Average annual wage for a licensed practical or licensed vocational nurse: $46,980

30. Montana

Young female medical student working at a hospital
Stokkete / Shutterstock.com

Average annual wage for a registered nurse: $69,340

Average annual wage for a nurse practitioner: $109,120

Average annual wage for a licensed practical or licensed vocational nurse: $44,730

29. Idaho

Idaho state capital building
Charles Knowles / Shutterstock.com

Average annual wage for a registered nurse: $69,480

Average annual wage for a nurse practitioner: $110,860

Average annual wage for a licensed practical or licensed vocational nurse: $46,430

28. Georgia

Mark Winfrey / Shutterstock.com

Georgia is one of several states predicted to have a shortage of registered nurses by 2030, according to an analysis from the U.S. Department of Health and Human Services. The federal agency forecasts that the Peach State will be short 2,200 RNs by that time.

Georgia is also among the majority of states forecast to have a shortage of licensed practical nurses by 2030, the analysis found. The state is projected to be short 10,500 LPNs by that year.

Average annual wage for a registered nurse: $69,590

Average annual wage for a nurse practitioner: $105,670

Average annual wage for a licensed practical or licensed vocational nurse: $42,570

27. Maine

nurse
Monkey Business Images / Shutterstock.com

Average annual wage for a registered nurse: $69,760

Average annual wage for a nurse practitioner: $106,960

Average annual wage for a licensed practical or licensed vocational nurse: $46,930

26. Vermont

University of Vermont Medical Center
Bob LoCicero / Shutterstock.com

Average annual wage for a registered nurse: $70,240

Average annual wage for a nurse practitioner: $105,840

Average annual wage for a licensed practical or licensed vocational nurse: $50,210

25. Pennsylvania

hospital
Ilze_Lucero / Shutterstock.com

Average annual wage for a registered nurse: $71,410

Average annual wage for a nurse practitioner: $101,950

Average annual wage for a licensed practical or licensed vocational nurse: $49,200

24. Virginia

UVA health care heroes banner
Kim Kelley-Wagner / Shutterstock.com

Average annual wage for a registered nurse: $71,870

Average annual wage for a nurse practitioner: $109,110

Average annual wage for a licensed practical or licensed vocational nurse: $46,070

23. Wisconsin

Senior man with nurse
Nejron Photo / Shutterstock.com

Average annual wage for a registered nurse: $72,610

Average annual wage for a nurse practitioner: $112,130

Average annual wage for a licensed practical or licensed vocational nurse: $46,550

22. Michigan

University of Michigan Hospitals
Susan Montgomery / Shutterstock.com

University of Michigan Hospitals-Michigan Medicine ranks among the top 20 hospitals in the United States. Like the University of Michigan itself, the hospital is located in the city of Ann Arbor.

Average annual wage for a registered nurse: $73,200

Average annual wage for a nurse practitioner: $108,660

Average annual wage for a licensed practical or licensed vocational nurse: $50,300

21. New Mexico

Home health care worker
Rob Marmion / Shutterstock.com

Average annual wage for a registered nurse: $73,300

Average annual wage for a nurse practitioner: $111,930

Average annual wage for a licensed practical or licensed vocational nurse: $48,330

20. Illinois

wavebreakmedia / Shutterstock.com

Chicago is home to two of the top 20 hospitals in the United States — Northwestern Memorial Hospital and Rush University Medical Center — according to the rankings of U.S. News & World Report.

Average annual wage for a registered nurse: $73,510

Average annual wage for a nurse practitioner: $107,860

Average annual wage for a licensed practical or licensed vocational nurse: $53,290

19. New Hampshire

Manchester, New Hampshire
Sean Pavone / Shutterstock.com

Average annual wage for a registered nurse: $73,880

Average annual wage for a nurse practitioner: $110,680

Average annual wage for a licensed practical or licensed vocational nurse: $54,220

18. Delaware

nurse
wavebreakmedia / Shutterstock.com

Average annual wage for a registered nurse: $74,100

Average annual wage for a nurse practitioner: $112,430

Average annual wage for a licensed practical or licensed vocational nurse: $53,520

17. Texas

MD Anderson Cancer Center
JHVEPhoto / Shutterstock.com

Texas is one of several states facing a serious shortage of registered nurses by 2030, according to an analysis by the U.S. Department of Health and Human Services. It’s also among the majority of states forecast to have a shortage of licensed practical nurses by 2030.

Additionally, Texas has a larger share of uninsured residents than any other state, as we detail in “16 States With the Worst Rates of Health Insurance.”

Average annual wage for a registered nurse: $74,540

Average annual wage for a nurse practitioner: $115,440

Average annual wage for a licensed practical or licensed vocational nurse: $47,370

16. Colorado

Denver, Colorado
f11photo / Shutterstock.com

Average annual wage for a registered nurse: $76,230

Average annual wage for a nurse practitioner: $106,760

Average annual wage for a licensed practical or licensed vocational nurse: $53,180

15. Maryland

Johns Hopkins Hospital
Richard Thornton / Shutterstock.com

Baltimore is home to the Johns Hopkins Hospital, which U.S. News & World Report ranks as the top hospital in the country for multiple specialties — from ear, nose and throat care to psychiatry — as we report in “The 20 Highest-Ranked U.S. Hospitals in 2020.” The publication also ranks Johns Hopkins Hospital the No. 3 hospital in the country overall.

Average annual wage for a registered nurse: $77,910

Average annual wage for a nurse practitioner: $111,800

Average annual wage for a licensed practical or licensed vocational nurse: $55,020

14. Arizona

hospital
vewfinder / Shutterstock.com

Average annual wage for a registered nurse: $78,330

Average annual wage for a nurse practitioner: $111,480

Average annual wage for a licensed practical or licensed vocational nurse: $54,290

13. Minnesota

Mayo Clinic Hospital
Leigh Trail / Shutterstock.com

The city of Rochester, Minnesota, is home to the Mayo Clinic — which U.S. News & World Report ranks as the No. 1 hospital in the nation, as we detail in “The 20 Highest-Ranked U.S. Hospitals in 2020.” The Mayo Clinic also is ranked No. 1 for multiple types of specialty care, from diabetes and endocrinology to pulmonology and lung surgery.

Average annual wage for a registered nurse: $80,130

Average annual wage for a nurse practitioner: $122,850

Average annual wage for a licensed practical or licensed vocational nurse: $48,460

12. Rhode Island

nurses
Spotmatik Ltd / Shutterstock.com

Average annual wage for a registered nurse: $82,310

Average annual wage for a nurse practitioner: $115,310

Average annual wage for a licensed practical or licensed vocational nurse: $59,860

11. Connecticut

Candlewood Lake
By tmphoto98 / Shutterstock.com

Average annual wage for a registered nurse: $83,440

Average annual wage for a nurse practitioner: $115,140

Average annual wage for a licensed practical or licensed vocational nurse: $57,380

10. New Jersey

Amy Lutz / Shutterstock.com

New Jersey is one of seven states expected to have a shortage of registered nurses by 2030, according to an analysis by the U.S. Department of Health and Human Services. The federal agency predicts that the state will be short a whopping 11,400 RNs in about a decade.

Average annual wage for a registered nurse: $84,280

Average annual wage for a nurse practitioner: $123,810

Average annual wage for a licensed practical or licensed vocational nurse: $57,510

9. Washington

Bellevue, Washington
mandritoiu / Shutterstock.com

Average annual wage for a registered nurse: $86,170

Average annual wage for a nurse practitioner: $126,920

Average annual wage for a licensed practical or licensed vocational nurse: $57,940

8. New York

lev radin / Shutterstock.com

Nurses aren’t the only front-line workers with relatively high average wages in New York. The state ranks No. 1 for its wages for grade-school teachers, as we report in “Here’s How Much Teachers Are Paid in Every State.”

Average annual wage for a registered nurse: $87,840

Average annual wage for a nurse practitioner: $122,550

Average annual wage for a licensed practical or licensed vocational nurse: $49,860

7. Nevada

Nurse
GagliardiImages / Shutterstock.com

Average annual wage for a registered nurse: $88,380

Average annual wage for a nurse practitioner: $115,970

Average annual wage for a licensed practical or licensed vocational nurse: $58,470

6. Alaska

Anchorage, Alaska
Rex Lisman / Shutterstock.com

Alaska is one of seven states facing a shortage of registered nurses in the near future, according to the report from the U.S. Department of Health and Human Services. The federal agency forecasts that by 2030, the state will be short 5,400 registered nurses.

Alaska is also among the majority of states forecast to have a shortage of licensed practical nurses by 2030, the report found.

Average annual wage for a registered nurse: $90,500

Average annual wage for a nurse practitioner: $115,890

Average annual wage for a licensed practical or licensed vocational nurse: $63,850

5. Oregon

nurse pushing a patient in a wheelchair
Monkey Business Images / Shutterstock.com

Average annual wage for a registered nurse: $92,960

Average annual wage for a nurse practitioner: $113,430

Average annual wage for a licensed practical or licensed vocational nurse: $54,740

4. Massachusetts

Worcester, Massachusetts
Sean Pavone / Shutterstock.com

Massachusetts has a larger share of insured residents than any other state in the country, as we detail in “15 States Where the Most People Have Health Insurance.” A mere 3% of Massachusetts’ population is without insurance.

Average annual wage for a registered nurse: $93,160

Average annual wage for a nurse practitioner: $122,240

Average annual wage for a licensed practical or licensed vocational nurse: $60,340

3. District of Columbia

Washington D.C.
f11photo / Shutterstock.com

Nurses aren’t the only front-line workers with relatively high average wages in Washington, D.C. The nation’s capital ranks No. 1 — beating out all 50 states — based on its pay for the heroes behind cash registers, as we report in “How Much Cashiers Earn in Every State.”

Average annual wage for a registered nurse: $94,820

Average annual wage for a nurse practitioner: $111,950

Average annual wage for a licensed practical or licensed vocational nurse: $54,220

2. Hawaii

Honolulu, Hawaii
MNStudio / Shutterstock.com

U.S. News & World Report named Hawaii the No. 1 state for health care in general. In the analysis, Hawaii leads the nation in health care quality, is third for health care access and fourth for public health.

Average annual wage for a registered nurse: $104,060

Average annual wage for a nurse practitioner: $124,000

Average annual wage for a licensed practical or licensed vocational nurse: $51,010

1. California

Keck Hospital of USC
Kit Leong / Shutterstock.com

California may pay its nurses well, but it is one of seven states forecast to have a shortage of registered nurses by 2030, according to an analysis by the U.S. Department of Health and Human Services. The federal agency predicts that the state will be short 44,500 full-time RN jobs — far more than any other state — by that year.

Average annual wage for a registered nurse: $113,240

Average annual wage for a nurse practitioner: $138,660

Average annual wage for a licensed practical or licensed vocational nurse: $60,240

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Source: moneytalksnews.com