Applying for a mortgage can be stressful, what with all the money that’s on the line.
Oh, and the possibility that you could be denied entirely, perhaps while starting a family or attempting to relocate to a new state.
Making matters worse is the fact that all types of new words are thrown your way, which aside from being confusing, can make it difficult to negotiate a great rate on your home loan.
If you don’t know what the salesperson is talking about, how are you going to make your case for a better rate or lower fees?
My central message here at TTAM has always been empowerment through knowledge, with the reward being a better mortgage, whether it’s a lower interest rate, fewer closing costs, or simply the right product.
If you’re new to the game, you’ve probably got a lot of mortgage questions, and even if it’s not your first time, it never hurts to brush up on the basics.
Let’s discuss some of the more common mortgage lingo you might hear as you navigate the mortgage market, what the words mean, and how knowing them could save you some dough!
1. FICO
Let’s start with what’s arguably the most important mortgage-related term out there; your FICO score.
I say that because it can greatly impact what mortgage rate you ultimately receive, which can affect your wallet in a major way each and every month for many years to come.
If you’re applying for a mortgage, you’ve probably already heard of a FICO score because you have a credit card and/or a bank account, but you might not know just how much weight it carries.
Simply put, it can mean the difference between a rate of say 3% and 5% on a mortgage, depending on all the attributes of the loan.
So it’s nothing to take lightly, and something you should be well-versed on before you begin the process.
I’ve already written about mortgage credit score requirements extensively, but one key takeaway is that a credit score of 740 or higher will generally give you access to the lowest interest rates and most financing options.
2. LTV
Similarly crucial is your loan-to-value ratio, also known as LTV in industry terms. It too is a huge driver in determining your mortgage rate, with lower LTVs typically resulting in lower interest rates.
You can calculate your LTV by dividing the loan amount by the sales price or value of the property.
So if you put $60,000 down on a $300,000 home, the LTV would be 80%. It happens to be a key threshold to avoid mortgage insurance and secure lower rates.
In short, the lower your LTV, the lower your mortgage rate in most cases, as it means you’ve got more invested and the lender is less exposed.
3. DTI
When a lender qualifies you for a mortgage, they’ll do some calculations to determine affordability.
The major one is your debt-to-income ratio, or DTI, which is calculated by dividing your monthly liabilities (that show up on your credit report) by your monthly gross income.
If you spend $4,000 a month on housing and other costs like an auto loan/lease and credit cards, and make $10,000, your DTI would be 40%.
Generally, you want it below 43% to qualify for most mortgages, though there are exceptions. But again, lower is better here.
4. Appraisal
Mortgage lenders will often use require a home appraisal to determine the value of your property as it’s the collateral for the loan.
While appraisal waivers are becoming more and more possible these days, you’ll likely be on the hook for the cost of the appraisal when applying for a home loan.
Cost aside, it’s very important that the property comes back “at value” to ensure your loan can close without delay, or worse, require an increased down payment to make it work.
Additionally, you’ll probably just want to know what a third-party appraiser values your property at to determine its worth.
5. FHA
It stands for Federal Housing Administration, which bills itself as the largest mortgage insurer in the world, with a portfolio that exceeds $1.3 trillion at last glance.
They insure the many FHA loans borrowers take out to finance their home purchases. Their signature loan is the 3.5% down payment mortgage.
It is a government-backed loan, as opposed to the conventional loans backed by entities like Fannie Mae or Freddie Mac.
6. VA
The U.S. Department of Veteran Affairs provides a similar guarantee to lenders that issue mortgage loans to veterans and active service members.
This allows them to offer more favorable terms to those who protect our country.
The signature loan option is a zero down payment mortgage that also comes with a low interest rate, limited closing costs, and no mortgage insurance requirement.
7. USDA
While they’re perhaps better known for juicy steaks, the USDA also runs a pretty significant home loan program that provides 100% financing to home buyers.
The caveat is that the property must be located in a rural area in order to be eligible for financing – but many areas throughout the United States hold this distinction, even if not too far from major metropolitan areas.
8. GSE (Fannie and Freddie)
If the loan is a conventional one, meaning non-government, it’s probably backed by either Fannie Mae or Freddie Mac, which are the two government-sponsored enterprises (GSEs).
These two private, yet government-controlled companies (since the latest housing crisis), back or purchase the majority of home loans originated by lenders today.
They allow down payments as low as 3% with credit scores down to 620.
While the down payment requirement is slightly below that of the FHA, their credit score requirement is quite a bit higher.
9. PMI
It stands for private mortgage insurance, and applies to most conventional home loans with an LTV above 80%. It protects the lender, not you, from default, and can be quite costly.
Yet another reason to come in with a 20% down payment when obtaining a mortgage.
If you can avoid PMI, you might be able to significantly lower your monthly housing payment. Mortgage rates also happen to be lower at/below 80% LTV.
10. MIP
The mortgage insurance equivalent for FHA loans is known as MIP, and includes both an upfront premium (typically financed into the loan amount) and an annual premium, paid monthly for the life of the loan in most cases.
Sadly, it applies no matter what the LTV, hitting FHA borrowers twice regardless of down payment. This is one of the major downsides of an FHA loan.
11. PITI
Your monthly mortgage payment can be summed up by one neat acronym: PITI. Ironic pronunciation aside, it stands for principal, interest, taxes, and insurance.
It’s a more accurate representation of your housing payment, which is often advertised as just principal and interest (making it look at lot cheaper!).
In short, don’t forget to account for the property taxes and homeowners insurance, which can significantly increase your monthly outlay.
12. ARM
One of the more popular, yet highly-scrutinized loan types available, the adjustable-rate mortgage typically offers a lower interest rate to homeowners versus a fixed mortgage.
The downside is that it can adjust much higher once any initial fixed period comes to an end, though you often get a full five or seven years before that happens.
At the moment, ARMs aren’t offering much of a discount versus fixed-rate mortgages, so they’re best to be avoided for most folks.
13. FRM
The most popular home loan choice is a fixed-rate mortgage, also known as a FRM.
Two common examples include the 30-year fixed and 15-year fixed.
The interest rate does not change during the entire loan term, making it a safe choice for borrowers.
The negative here is that you pay for that peace of mind via a higher mortgage rate, all else being equal.
14. HELOC
Once you’ve already got a mortgage, you might want to tap into your home equity via a home equity line of credit, known as a HELOC.
It differs from a traditional second mortgage in that you get a line of credit that you can borrow from multiple times, similar to a credit card.
You can borrow as little or as much of that line as you want, pay it back, then borrow again, or just leave it open for a rainy day.
And perhaps more importantly, you can keep your low first mortgage rate untouched.
15. LO
Your LO, or loan officer, is your guide through the mortgage application process.
This is the person you’ll first make contact with, who will help you choose a loan type, negotiate pricing, and contact whenever anything comes up.
They are your eyes and your ears, and also your liaison to the mortgage underwriter, who decisions the loan, and the loan processor, who keeps everything moving behind the scenes (the unsung heroes).
16. Mortgage Broker
Similar to an independent insurance agent, mortgage brokers work with lenders and borrowers simultaneously to find you the lowest rate and/or best loan for your unique situation.
They aren’t tied to one specific company so they can shop on your behalf and ideally show you a range of what’s available with little legwork on your part.
It’s an easy way to comparison shop without having to speak to more than one company or individual.
17. APR
The annual percentage rate (APR) is the cost of your loan, factoring in the lender’s closing costs. You can’t simply compare loan options by looking at their interest rates.
Because closing costs can vary by thousands of dollars, they must be considered to determine which loan offer is the best deal.
However, APR still has its limitations because not all costs are included, and it assumes you’ll keep the loan for the full term, which many homeowners do not.
18. Points
A mortgage point is just another (unnecessarily fancy) way of saying 1% of the loan amount.
Unfortunately, these types of points will cost you because they are paid for by the borrower, assuming they apply to your specific loan.
They may take the form of discount points (to lower your interest rate) or represent the lender’s commission, known as a loan origination fee.
Your next question might be are mortgage points worth it?
19. Rate Lock
A quoted mortgage rate means basically nothing until it’s actually locked by the lender on your behalf.
Once it’s locked in, the rate won’t be subject to changes even if mortgage rates rise and fall as your loan application is processed and eventually funded.
Just be sure to close on time to avoid having to pay a lock extension fee, or worse, losing your lock!
20. Impounds
The mortgage payment isn’t the only thing you’ll have to worry about every month.
There’s also property taxes and homeowners insurance, which often must be paid monthly via an impound account unless you specifically waive them for a cost.
The lender collects a portion of these payments monthly, then releases the necessary funds once or twice a year on your behalf.
There’s nothing inherently wrong with impounds, they can even make budgeting easier, but some folks like having full control of their money.
21. Pre-Approval
If you’re shopping for a home to purchase, it’s pretty much a necessity to have a mortgage pre-approval in hand or the seller’s agent likely won’t even call your agent back.
Aside from being more or less mandatory, they’re also helpful to determine affordability and snuff out any potential fires early on.
A pre-approval is also a stronger version of a pre-qualification, which is often just a verbal starting point.
22. LE (Loan Estimate)
The loan estimate, or LE, replaced the long-utilized Good Faith Estimate, or GFE.
It is a summary of your proposed mortgage that includes the loan type, loan amount, interest rate, monthly payment, APR, and closing costs.
You can use it to compare offers from other lenders when shopping your rate. Take the time to read through the whole thing!
23. CD (Closing Disclosure)
The closing disclosure, or CD, replaced the HUD-1. It provides the final details of the loan, and must be delivered to the borrower at least 3 days before loan closing.
It can be compared to the LE to determine if anything changed from around the time of the application to loan closing. It’s a good time to review and ask questions if necessary.
If you want to know even more, check out my comprehensive mortgage glossary that includes just about every mortgage-related word you’d ever want to know.
Typically, you pay a premium if you select a 30-year fixed mortgage versus an adjustable-rate mortgage.
The reason is simple – the interest rate is locked in and will not change during the entire loan term, which is a full 30 years, or 360 months.
Conversely, if you choose to go with an adjustable-rate mortgage, such as a 5/1 ARM or a 7/1 ARM, you only receive the benefit of a fixed rate for the first five or seven years, respectively.
It is then subject to change annually during the remaining 23 or 25 years of the loan term.
As such, you should be entitled to a discount on your mortgage rate during that initial fixed period to make up for the risk of the interest rate resetting higher once the fixed period ends.
This spread can change over time depending on what’s going on in the economy and secondary market, along with lender/investor appetite for certain products.
Today’s Menu: 30-Year Fixed or Bust
Mortgage rates are usually highest on the 30-year fixed
Because borrowers receive a fixed interest rate for a full three decades
Discounts are typically given on riskier products like ARMs or shorter-term loans like the 15-year fixed
But right now lenders aren’t passing along the usual discounts
At the moment, anything that isn’t a 30-year fixed mortgage is basically out of favor.
This is probably even more true with nonbank lenders and those who sell off their mortgages, as opposed to keeping them in their own bank portfolio.
This explains why you’re no longer seeing the usual discounts offered for loan products like ARMs, and in some cases, even shorter-term fixed-rate mortgages, including the 15-year fixed.
Once again, I traveled across the internet to see what mortgage lenders were advertising for their popular loan programs, and this trend is pretty clear.
Lender
ARM or 15-Year Fixed Rate
30-Year Fixed Rate
Bank of America
3.375% (10/1 ARM)
3.375%
BB&T
3.375% (15-year fixed)
3.375%
Chase
3.49% (7/1 ARM)
3.125%
Citi
4.75% (7/1 ARM)
3.875%
Citizens Bank
3.375% (7/1 ARM)
3.375%
Navy Federal
2.375% (5/5 ARM)
2.875%
Quicken Loans
3.125% (10/1 ARM)
3.375%
USAA
*3.50% (VA 5/1 ARM)
3.50%
Wells Fargo
3.625% (5/1 ARM)
3.375%
Bank of America is advertising a 30-year fixed for 3.375% with 0.786% discount points, and a 10/1 ARM for the same rate with 0.971% discount points. In this example, it’s actually more expensive to take the riskier loan product.
BB&T is charging the same 3.375% for a 30-year or 15-year fixed refinance rate, yet the APR is slightly higher on the 15-year.
Chase will give you a 30-year fixed for 3.125%, or a 5/1 ARM for the same price. If you want a 7/1 ARM, the rate jumps up to 3.49%. More risk for more money…that’s a sign of a messed-up mortgage market.
Citi is showing super wild mortgage rates, with the 30-year fixed 3.875% with 0.125% points, and the 7/1 ARM pricing at 4.75% with a full point charged. You’d be crazy to go with the ARM.
Over at Citizens Bank, they’re advertising a 30-year fixed for 3.375% with .50% discount points. Meanwhile, their 7/1 ARM features the same exact rate with .125% discount points.
So slightly cheaper in terms of closing costs, but the same exact rate. It wouldn’t make much sense for most folks to go with the ARM unless they absolutely knew they’d be selling before those seven years were up.
And right now, there’s not a whole lot of certainty in terms of what’s next for anyone.
Some mortgage lenders aren’t advertising or possibly even offering ARMs at the moment, including Better Mortgage and Guaranteed Rate.
Navy Federal seems relatively normal, with their 30-year fixed 2.875% with 1.25 points, and their 5/5 ARM pricing at 2.375% with 0.25% points.
That’s a discount of a half a percent, which is more of what you’d expect to see based on the risk profiles of both loan programs. This might be because they keep the loans they originate.
At Quicken Loans, you can get a slight discount on a 10-year ARM vs. a 30-year fixed, 3.125% instead of 3.375%.
Then there’s USAA, which is advertising a 30-year fixed VA loan for 3.50% with negative mortgage points of 0.375%, and a 5/1 ARM with “APR typically around 3.500%.” You have to call to get the scoop, but it doesn’t sound much cheaper.
Lastly, Wells Fargo is offering a 5/1 ARM for 3.625%, and a 30-year fixed for a cheaper 3.375%.
So again, you’d be better off taking the 30-year fixed, not only because the interest rate is lower, but it’s also fixed for the full mortgage term.
It’s All About the Plain Vanilla Home Loan Right Now
Mortgage lenders are very skittish at the moment like all other businesses
As such they’re sticking to their safest products like the 30-year fixed while also tightening underwriting standards
This is partially because it’s easier to sell these types of loans on the secondary market to investors
Expect it to be more difficult to find a home loan with exotic features for the foreseeable future
In summary, mortgage lenders are grappling with a lot of uncertainty, just like everyone else thanks to the coronavirus (COVID-19).
And when that happens, they flock to the safety and security of the 30-year fixed, similar to how investors flee the stock market and head toward government bonds, which are guaranteed to be paid back.
Speaking of being paid back, the Fed’s QE4 program targets agency mortgage-backed securities, such as those backed by Fannie Mae and Freddie Mac.
At the moment, banks and lenders are eschewing anything that isn’t super vanilla, aka basic and low-risk.
Those who are offering ARMs, jumbo loans and other traditionally riskier products are charging a premium in many cases since they don’t have the benefit of the Fed as a buyer.
Others are just removing them from their product menu, perhaps until the dust settles.
It’s reminiscent of the mortgage crisis that took place in the early 2000s, when lenders only originated boring old fixed-rate mortgages and ditched all the aggressive option ARMs, interest-only loans, and so on.
To make matters worse for some borrowers, they’re also upping minimum credit score requirements and getting tougher with their underwriting, whether it’s a lower max DTI ratio or a lower max loan-to-value ratio (LTV).
The name of the game is less risk, so if you’ve got a questionable loan scenario, it might be difficult to get funding right now.
Hopefully this is a short-term phenomenon, but no one knows for sure how long it will last.
Read more: What mortgage has the best interest rate?
American Express cards are the Mercedes of credit cards. They’re not cheap, nor are they easy to get – but boy are they nice…right?
Amex’s stand out as having some of the best perks and rewards in the industry, but they are offset by high annual fees, high credit requirements, and a slightly lower merchant acceptance rate.
That’s quite a list of drawbacks – especially the annual fee – but is it all worth it for the high rewards? Will the perks and points cover the cost of one of these cards, and then some? Or are you better off sticking with a Toyota than a Mercedes?
What’s Ahead:
What makes Amex cards stand out?
Generally speaking, Amex cards stand out from other credit cards in four ways. And like The Rock’s character in Fast Five, I like my dessert first – so let’s start with the good stuff.
Amex cards have industry-leading rewards
In a word, Amex rewards slap.
Not only will you earn crazy cash back with an Amex, but also some impressive sign-up bonuses, too.
Here are just a few examples:
The Blue Cash Preferred® Card
20% back on Amazon.com purchases within the first six months of card ownership.
$200 cash back after spending $3,000 in purchases within six months.
6% cash back at supermarkets and streaming services.
3% cash back on transit purchases.
American Express® Gold Card
75,000 Membership Rewards® Points for spending $4,000 within first six months of card ownership.
4x points at restaurants worldwide and U.S.-based supermarkets.
$120 Uber Cash.
The Platinum Card®
125,000 Membership Rewards® Points after spending $6,000 within first six months.
10x points on purchases at “Shop Small” (i.e. small businesses on this map) and restaurants worldwide.
5x points on flights.
5x points on prepaid hotels.
$200 Hotel Credit.
$200 Airline Fee Credit.
$200 Uber Cash.
$240 Digital Entertainment Credit.
$100 Global Entry or $85 TSA PreCheck®.
And more.
Even The Platinum Card®‘s eye-watering $695 annual fee starts to make sense when you consider it comes with $1,400 in credits for Uber, Netflix, and more.
Now that we’ve eaten dessert, it’s time for the cabbage, so to speak. What’s the bad news?
They have higher credit requirements
I’ll just come out and say it – you’ll need a 700+ credit score to have a good shot at getting approved for an Amex. That’s because Amex wants to attract “Lannister types” – those who spend big but always pay their debts.
Most Amex cards charge an annual fee
Amex currently offers 17 rewards cards, and 11 of them have an annual fee attached.
For reference, the six “freebies” are:
The Blue Cash Everyday® Card.
The Cash Magnet® Card.
The Hilton Honors Card.
Blue from American Express®.
The Delta SkyMiles® Blue American Express Card.
The Amex EveryDay® Credit Card.
These cards are OK. They compete with other no-fee cards on rewards, but lose ground on perks, merchant acceptance, and required credit.
Amex’s no-fee cards, then, are like a salad in a steakhouse; they’re perfectly fine, but they’re not why we’re here.
Instead, we’re here for the prime chops. Amex’s paid cards are highly compelling, but they’re definitely not cheap, with annual fees ranging from $95 to $695.
Regardless of how tasty the steak is, the eye-popping bill is an undeniable drawback.
The acceptance rate is better, but still lacking
Nothing deflates an Amex holder’s day faster than the following phrase:
“Sorry – Visa and Mastercard only.”
Poof. All those potential reward points, gone.
Historically, merchants have refused Amex’s because of high merchant fees. In 2017, Visa and Mastercard charged an average of 2.12% compared to Amex’s 2.36%.
0.24% may not seem like much, but when you’re operating on razor-thin margins, it adds up. That’s why, until very recently, only 3.7 million out of 10.6 million U.S. merchants accepted Amex.
Since then the acceptance rate among U.S. merchants has gotten much better – from 35% to 99% in just a few years. However, Amex still struggles internationally. According to a 2020 Nilson report, while Visa and Mastercard are now accepted by over 70 million merchants globally, only 44.2 million of them accept Amex.
It’s ironic, then, that Amex cards offer the industry’s best travel rewards – but there’s a 37% chance you can’t use them when you land.
Are Amex rewards worth the annual fee?
It depends!
If there’s an Amex that clearly fits your existing spending habits and lifestyle, you’ll almost certainly end up using it enough to clear the annual fee and earn serious rewards.
Here’s a quick summary of who is (and isn’t) a fit for an Amex card:
Amex cards are a good fit for:
Big spenders.
Delta Frequent Fliers.
Hilton Honors or Marriott Rewards members.
Amex cards are not a good fit for:
Frugal spenders.
Credit-builders.
Balance transfers.
Which Amex is right for you?
As hinted above, the key to picking the right Amex, and rewards card in general, is to find the card that fits your existing lifestyle and spending habits.
I emphasize existing because you don’t want to make the same mistake I did – I got a card in my early 20s that fit my aspirational lifestyle – not the one I was already leading. This led to me losing $75 on the card in Year One, and worse, overspending in Year Two to justify having it.
Don’t be like me!
Don’t get a rewards card that encourages unplanned or out-of-budget spending – instead, get a rewards card that gives you 3x, 6x, even 10x points back on stuff you’re already spending money on.
The rewards card should fit the lifestyle, not the other way around.
Examine your existing budget and spending habits
As you probably surmised from my mini-lecture above, the first step in determining if an Amex is right for you is to get a clearer picture of your existing spending habits.
If you use a budgeting tool, take a look at your spending summary for the past few months. If you prefer to budget more manually, pull up your current credit card statement as a substitute.
Now, what common credit card rewards categories are you spending the most in?
Flights?
Hotels?
Groceries?
Amazon purchases?
Making a list of your top three spending categories will help you choose the right Amex card in the next step.
Find the right Amex for you
Next, take a look at Amex’s current stable of rewards cards and spend a good 15 seconds studying each one’s sign-up bonus and rewards.
The travel rewards cards will be the easiest to filter out
Do you fly Delta once a month? The Delta SkyMiles® Gold American Express Card might be a fit. Do you fly Delta every week? You’ll almost certainly get value out of the Delta SkyMiles® Platinum American Express Card.
The same applies to the Hilton and Marriott cards. If you already frequent those hotel chains, the points and perks will justify the annual fee almost immediately.
If the travel cards aren’t a fit, that leaves the more general rewards cards
Do you spend a lot on groceries and streaming services? The Blue Cash Preferred® Card might be a fit.
Do you take Ubers frequently and could you benefit from 0% APR for 12 months? Maybe the American Express® Gold Card may be your literal golden ticket.
…or you might prefer The Platinum Card®
Finally, you might be considering the “S-Class” of the Amex lineup – The Platinum Card®. Despite having the highest fee of any Amex card, The Platinum Card® may actually be the best value – if you’re already spending big money on flights, hotels, Uber, SiriusXM®, etc.
If you’re not sure if you’ll be able to justify this or any other Amex’s high annual fee, let’s move onto Step 3 and do some math.
Calculate what you’ll need to spend to cover the annual fee
Let’s say you’re considering the Blue Cash Preferred® Card, but you’re not sure if you’ll spend enough to justify the $95 annual fee.
Thanks to sign-up bonuses, you’ll have no trouble justifying your fee in Year One. It’s Year Two you have to think about.
So, to determine how much you’ll need to spend to cover the fee in Year Two, use this simple equation:
Annual fee / percentage cash back rewards
For example, the Blue Cash Preferred® Card has a $95 annual fee and 6% cash back on supermarkets and streaming – among others, but for simplicity’s sake, we’ll focus on the biggest rewards categories:
$95 / 0.06 = $1,650
You’ll have to spend $1,650 within the 6% cash back categories to cover your annual fee.
Mind you, this is just a break-even point – you’ll have to spend another $1,650, or $3,300 total, to catch up to what you would have earned with a no-fee, 3% cash back card. So if you spend less than $3,300 annually in these categories, a no-fee card is probably a safer bet.
Summary
Amex cards are the Mercedes of credit cards – expensive, but feature-rich. They’re not for everyone – many won’t use them enough to justify the high annual fees. But those whose lifestyle and spending habits already justify the addition of an Amex are in for a treat.
Whether you’re shopping for a new credit card or trying to understand the details of an account you’ve already opened, the Schumer box can be a great place to start your research.
This cheat sheet provides the key details about a credit card account, such as the annual percentage rate you might pay to borrow money, and fees a card issuer may charge you.
What is a Schumer box?
Once upon a time, credit card companies used various methods to disclose the annual percentage rates and fees they charged consumers. However, the system was confusing. It could be difficult for consumers to understand the true cost of borrowing money with a credit card. And comparing one credit card to another was even more challenging.
Enter the Schumer box. In the late 1980s, then-Rep. Charles “Chuck” Schumer proposed legislation requiring credit card companies to use a standardized table to summarize a credit card’s rates, fees and other pertinent details. Congress passed the Fair Credit and Charge Card Disclosure Act of 1988 (an amendment to the Truth in Lending Act), and card issuers had to begin using the “Schumer box” in 2000.
Example of a Schumer Box
Key information you can find in a Schumer box
Credit card issuers follow specific rules when it comes to Schumer box disclosures. Even the font size a card issuer uses has to meet certain standards. For example, the APR for standard purchases must appear in 18-point font. Bold text is also required for certain disclosures. Additionally, there are key details that card issuers must include in the Schumer box to make it easy to understand each credit card’s terms and conditions.
Here is some of the helpful information you can find in a Schumer box:
APR for purchases
The purchase APR is the interest rate a credit card company applies to the purchases you make with your credit card if you don’t pay your full statement balance during the grace period. (Tip: If you follow the first rule of credit card rewards and never carry a balance from one month to the next, you can enjoy the benefits of a credit card without paying interest charges.)
If you’re reviewing a Schumer box that’s part of a credit card application or offer, you might see a range for the purchase APR instead of a single interest rate. The APR a card issuer assigns you will depend on your creditworthiness and other factors.
Related: What is a good APR for a credit card?
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APR for balance transfers
When you use your credit card for a balance transfer, the APR may differ from what you pay for standard purchases. If you take advantage of a promotional balance transfer credit card offer to consolidate debt, your balance transfer APR might be temporarily lower. However, once the promotional APR expires, the balance transfer APR could be equal to or higher than your purchase APR.
APR for cash advances
When you use your credit card for a cash advance, you’ll typically pay a higher APR than for standard purchases. The Schumer box will tell you how much your APR will be on a cash advance. However, it might not make it clear that you’ll probably begin paying interest the same day you request a cash advance instead of enjoying a grace period like you do with the other purchases you make on your credit card.
Penalty APR
If you miss a credit card payment or violate the terms of your credit card agreement in other ways, you risk activating the penalty APR on your account. The Schumer box discloses the (high) cost of your account’s penalty APR if you ever trigger it.
Grace period
If a credit card company offers a grace period, the Schumer box explains how many days you have between the statement closing date and your due date to pay off your statement balance to avoid interest charges.
Related: Important dates to know for your credit cards
Annual fee
A card issuer must disclose the cost of any annual fee it charges (if applicable) in the Schumer box.
Transaction fees
It’s common for credit card companies to charge fees for certain types of transactions like balance transfers, cash advances and foreign transactions. If a card issuer charges these fees, it must list them in the Schumer box.
Penalty fees
Another type of fee that a card issuer might charge you is a penalty fee. These charges include late fees, fees for going over your credit limit, returned payments fees and returned check fees.
Related: What happens if you go over your credit limit?
Where to find the Schumer box
You can check your credit card statement to find the Schumer box for your account if you’re already a cardholder. But if you’re shopping for new credit card offers and want to compare different products online, you can also look for this information on different credit card issuers’ websites.
It’s worth pointing out that locating the Schumer box for individual credit card offers isn’t always easy. But most card issuers provide a link to the information under a phrase like “Pricing & information” or “Rates & fees.”
The following cheat sheet shows the phrase you’ll need to look for on various card issuer websites when you’re looking for the Schumer box to compare credit card offers:
American Express: “Rates & Fees”
Capital One: “View important rates and disclosures”
Chase: “Pricing & Terms”
Citi: “Pricing & Information”
Discover: “See rates, rewards and other cost information”
Bottom line
A Schumer box contains helpful details you can use when shopping for a credit card (or to stay informed about accounts you already have open). Yet there may be additional steps you need to take to choose the best credit card for you. While it’s wise to understand the potential cost of borrowing on a credit card, don’t overlook the importance of comparing the best credit card offers based on credit requirements, rewards and benefits before you apply for a new account.
Southwest Airlines is the nation’s largest domestic carrier, but it offers a remarkably simple frequent flier program called Rapid Rewards. You simply redeem your points for about 1.4 cents each toward any unsold seat.
The Southwest Rapid Rewards Priority card offers the most perks of any of their credit cards, but that comes at a cost.
What Is the Southwest Rapid Rewards Priority Credit Card?
The Southwest Rapid Rewards Priority Credit Card is a premium travel rewards credit card offered by Chase. With its $149 annual fee, it’s the most expensive of the three Rapid Rewards consumer credit cards offered.
As a new applicant, you can earn 60,000 Rapid Rewards points and a 30% off promo code after using your card to spend $3,000 within three months of account opening. You can use this code for a round-trip ticket with multiple passengers, and it’s valid with both cash and points bookings.
You also earn 2x points on Southwest airlines purchases and from purchases from Rapid Rewards® hotel and car rental partners. The 2x points offer is also valid for local transit and commuting purchases, including rideshare providers such as Uber and Lyft. You also earn 2x points on your internet, cable, and phone bills as well as for select streaming services.
You should expect plenty of valuable benefits from a premium travel rewards card, and this card largely delivers. For example, you receive a $75 credit toward Southwest purchases each year as well as a credit toward four upgraded boardings annually. These upgraded boardings currently sell for $30 to $80 each, depending on the flight.
This card can also help you earn elite status in the Rapid Rewards program. You earn 1,500 tier qualifying points (TQPs) toward A-List status for every $10,000 you spend, and there’s no limit on the number of TQPs you can earn.
Other perks include 25% back on in-flight purchases as well as cardholder benefits like lost and delayed baggage insurance, extended warranty coverage and a purchase protection policy.
There’s a $149 annual fee for this card, but thankfully there’s no foreign transaction fee imposed on purchases processed outside the United States. You also get a 7,500-point bonus on your account anniversary instead of flowers, which is worth about $105.
What Sets the Southwest Rapid Rewards Priority Credit Card Apart?
Nearly every airline offers several credit cards, but the Southwest Rapid Rewards Priority Credit Card is different for a few reasons. Mostly, it provides you with enough perks to help you justify its considerable annual fee. These perks include:
Big sign-up bonus. Earn 60,000 bonus points and a 30% off promo code after spending just $3,000 within three months. The promo code itself is a unique offer and can be very valuable.
Lots of bonus categories. Earn 3x points on Southwest ticket purchases plus 2x from transit, commuting, and rideshare purchases and 2x from internet, cable, and phone services and select streaming purchases. You also earn 2x when you book reservations with Southwest’s hotel and rental car partners.
Credit toward Southwest tickets. You get $75 back from your Southwest purchases each year. You also get a 7,500-point bonus on your account anniversary, which is worth about $105. For many travelers, these two features can justify this card’s annual fee.
Earn credit toward A-List status. This card lets you earn 1,500 tier qualifying points (TQPs) toward A-List status for every $10,000 you spend, and there is no limit on the number of TQPs you can earn. A-List status offers you perks such as a better boarding position and free same-day confirmed flight changes.
Four upgraded boardings per year when available. This gives you a boarding position of A1-15, which normally costs $30 to $80 per flight.
Key Features of the Southwest Rapid Rewards Priority Credit Card
The Southwest Rapid Rewards Priority Credit Card is not a very complicated credit card, but it does offer a lot of features that are worth knowing about before you apply.
Sign-Up Bonus
Earn 60,000 bonus points and a promo code for 30% off after spending just $3,000 within three months. The 30% off code has the potential to offer tremendous savings to large families who use it to book a round-trip ticket.
Earning Rewards
Earn 3x points on Southwest ticket purchases plus 2x from transit, commuting, and rideshare purchases and 2x from internet, cable and phone services, and select streaming purchases. You also earn 2x when you book reservations with Southwest’s hotel and rental car partners. You earn one point per dollar spent on all other purchases.
Redeeming Rewards
Rapid Rewards points are worth about 1.4 cents each toward airfare in any of their four fare classes. There are no restrictions on the number of seats available for redeeming rewards — you can use your points for any unsold seat.
Important Fees
This card has an $149 annual fee. No doubt, this will turn off a lot of potential applicants. However, it’s important to consider it in the context of the sign-up bonus as well as the $75 annual travel credit, 7,500-point anniversary bonus, and the four upgraded boardings each year. Fortunately, there’s no foreign transaction fee.
Credit Required
This card requires good or better credit to qualify. If your FICO score is much below 700, then you’ll likely have trouble being approved.
Advantages
This card has several key advantages that help justify its pricey annual fee.
Lots of benefits. This card offers numerous benefits, such as travel fee credits, upgraded boardings, in-flight purchase discounts and an anniversary bonus. You also get several purchase protection and travel insurance policies.
Bonus points. With all the 3x and 2x bonus categories, this card makes it easy to earn a free trip.
Big sign-up bonus. You can earn a bonus worth hundreds of dollars, and the minimum spending required is lower than many competing cards. The 30% off code can also be extremely valuable.
Easy rewards program. Other airline credit cards offer miles that can be difficult and confusing to redeem for the most value. But the Southwest Rapid Rewards program still keeps it simple.
Disadvantages
Before applying for this card, you have to consider some of its drawbacks and missing perks.
Expensive annual fee. There’s no way around the fact that you must pay $149 a year to use this card, so you have to use the rewards and benefits of this card to justify it.
No promotional financing offer. If you’re looking for a credit card with a 0% APR introductory financing offer, this isn’t it.
Forget first-class. You can’t redeem your Rapid Rewards points for a first-class seat because there are only economy seats on Southwest.
No overseas awards. Like first-class, Southwest fliers will find Europe, Asia, and much of the world out of their reach. However, Southwest does fly to Hawaii, Mexico, the Caribbean and even Central America.
How the Southwest Rapid Rewards Priority Credit Card Stacks Up
One of Southwest’s closest competitors is JetBlue, and it offers the JetBlue Plus card from Barclays. The JetBlue card has a slightly better sign-up bonus and substantially more points for airline ticket purchases. However, JetBlue points are worth about 1.2 cents each, which is significantly less than Southwest points.
Southwest Rapid Rewards Priority Credit Card
JetBlue Plus Card From Barclays
Annual Fee
$149
$99
Sign-Up Bonus
Yes
Yes
Rewards Rate
Up to 3x
Up to 6x
0% Intro APR
None
None
Foreign Transaction Fee
None
None
Credit Needed
Good or better
Good or better
Final Word
Fans of Southwest Airlines know that it’s a different type of carrier than the likes of American, Delta and United.
Instead of business-class tickets to Europe, Southwest fliers prize little perks like an upgraded boarding position and easy-to-use rewards. That’s where the Southwest Rapid Rewards Priority Card delivers.
But for those who aren’t fully onboard with the way Southwest works, the $149 annual fee can be hard to swallow. It’s also not a card for those whose home airport doesn’t offer much Southwest service. And for these more casual Southwest customers, it can be worth considering the Rapid Rewards Plus and Premier cards.
But if you find yourself regularly boarding Southwest and are looking for the best card to maximize your rewards and benefits, then there’s no substitute for the Southwest Rapid Rewards Priority Credit Card.
Disclaimer: The information related to the Chase Southwest Rapid Rewards Priority Card has been collected by Money Crashers and has not been reviewed or provided by the issuer of this card.
The Verdict
Our rating
Southwest Rapid Rewards Priority Credit Card
This is Southwest’s most feature-filled credit card for consumers. It includes lot’s of opportunities to earn bonus points, and it features strong benefits. If you’re a regular Southwest flier, you need to look into this card.
Editorial Note:
The editorial content on this page is not provided by any bank, credit card issuer, airline, or hotel chain, and has not been reviewed, approved, or otherwise endorsed by any of these entities. Opinions expressed here are the author’s alone, not those of the bank, credit card issuer, airline, or hotel chain, and have not been reviewed, approved, or otherwise endorsed by any of these entities.
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Jason has been writing about personal finance, travel, and other topics on blogs across the Internet. When he is not writing, he has a career in information technology and is also a commercially rated pilot. Jason lives in Colorado with his wife and young daughter where he enjoys parenting, cycling, and other extreme sports.
Today we’ll check out “Compass Mortgage,” a direct lender based out of Chicagoland that is one of the top mortgage companies in Illinois.
They do nearly all of their business in the Land of Lincoln, putting them near the top-20 for all mortgage lenders in the state.
So if you’re a homeowner or prospective home buyer in Illinois, there’s a good chance you’ve heard of them.
What sets them apart is their dedication to customer service, with a big focus on creating a personal home loan experience, with you guessed it, real people.
That means being treated like family, instead of relying on a chat bot to get your loan. Read on to learn more.
Compass Mortgage Fast Facts
Retail, direct-to-consumer mortgage lender
Offers home purchase loans and refinances
Founded in, headquartered near Chicago, IL
Licensed to do business in 15 states
Funded $3.2 billion in home loans last year
Roughly 90% of total production comes from state of Illinois
Compass Mortgage is a retail, direct-to-consumer mortgage lender that offers home purchase loans and mortgage refinances.
This means you can apply remotely via their website, or visit a physical branch if one is located near you (they’re mostly in the Midwest).
The company was founded by Dan Graham in 2002 and is located in Warrenville, Illinois, which is about 30 miles west of Chicago.
For the record, they are not affiliated with the Compass real estate brokerage, which is based out of New York City.
While Compass Mortgage is licensed in 15 states across the nation, roughly 90% of total loan volume comes from their home state of Illinois.
That made them a near top-20 mortgage lender in the state of Illinois, mostly beat out by the mega banks, Guaranteed Rate, Rocket Mortgage, and so on.
The other states where they’re licensed include Arizona, California, Colorado, Florida, Georgia, Indiana, Iowa, Kentucky, Michigan, Minnesota, North Carolina, Ohio, Oregon, South Carolina, Tennessee, Texas, Virginia, and Wisconsin.
Last year, Compass funded $3.2 billion in home loans, with about two-thirds of volume consisting of mortgage refinances and the rest purchase loans.
That means they are probably well-suited for both existing homeowners and those looking to buy a property.
How to Apply with Compass Mortgage
To begin, you can either call them up, visit a physical branch, or simply head over to the website and go the self-serve route.
Your best bet might be to speak with a loan officer first to discuss loan pricing and eligibility, then apply.
Either way, it’s possible to apply without speaking to anyone if you’re a self-starter.
Once at the website, select your transaction type (e.g. refinance or purchase), then you’ll be asked if you know your loan officer by name or don’t have one/remember.
There is a loan officer directory on their website if you wish to read bios or if you simply need a reminder of who you were working with/referred to.
If you know the individual, you can select them from a drop-down list to ensure you’re paired with the correct person.
If not, you’ll be assigned a loan officer after you submit your loan application.
Their digital mortgage application is powered by Blend, a leader in the mortgage fintech world.
It allows you to complete the app electronically, link bank accounts using login credentials, eSign disclosures, upload paperwork, and more.
Once your loan is submitted, your loan team will guide you throughout the process. You’ll also be able to log on to the borrower portal 24/7 to check loan status and satisfy outstanding conditions.
Compass Mortgage makes it easy to apply for a home loan and stay abreast of what’s going on from start to finish.
If you’re a prospective home buyer, they offer their “Get Committed” mortgage pre-approval, which is a more robust loan commitment.
It is fully-underwritten and includes the ability to lock your loan before you find a property (pre-lock).
This shows home sellers you’re a serious, well-qualified buyer and can make your offer stand out in a bidding war or even compete with cash buyers.
Loan Programs Offered by Compass Mortgage
Home purchase loans
Renovation loans
Construction loans
Refinance loans: rate and term, cash out, streamline
Conforming loans backed by Fannie Mae and Freddie Mac
Jumbo loans
FHA loans
VA loans
USDA loans
Down Payment Assistance (DPA) programs
Bridge loans
Lot/Land loans
Compass Mortgage offers a wide selection of home loan options to suit just about any borrower in any situation.
This includes home purchase loans, refinance loans, and construction and renovation loans, such as the FHA 203k program.
All the major loan types are available, including conforming, jumbo, government loans (FHA/VA/USDA), and even bridge loans.
Those who are short on funds can take advantage of their Down Payment Assistance (DPA) programs, including grants and forgivable loans.
They lend on all property types, including primary residences, vacation homes, multi-unit investment properties, and condos/townhomes.
Both fixed-rate and adjustable-rate mortgages are available in a variety of loan terms including the 15-year fixed and 7/1 ARM.
Simply put, you shouldn’t be limited when it comes to loan choice.
Compass Mortgage Rates
One area that’s light on information is their mortgage rates and lender fees.
Compass Mortgage doesn’t publicize these details on their website, so it’s hard to know how competitive they are on the pricing front.
As such, you’ll need to get in touch with a human first to discuss interest rates and inquire about any fees.
It’s unclear if they charge a loan application fee, loan origination fee, underwriting fee, and so on.
Be sure to get all the details and your mortgage APR so you can compare it to quotes from other banks, lenders, and mortgage brokers.
Compass Mortgage Reviews
On Zillow, Compass Mortgage has a 4.99-rating out of a possible 5 from about 400 customer reviews.
That’s pretty much as close to perfection as you can get, and a testament to their mission to provide a “Better Mortgage Experience.”
A good chunk of those reviews indicate that the interest rate and/or closing costs were lower than expected. So that at least provides a clue to their pricing.
They also have a 4.9-star rating on Google from nearly 800 reviews, another sign of their strength in the customer satisfaction department. And a 4.5-star rating on Yelp from over 50 reviews.
Lastly, while they’re not an accredited business, they hold an ‘A+’ BBB rating based on complaint history, of which there are none currently on file.
To summarize, Compass Mortgage seems to be really big on customer service, and could be a good choice for a first-time home buyer who wants hands-on service throughout the loan process.
They could also work for an existing homeowner looking to refi – just pay attention to rates and fees to ensure they’re competitive.
Compass Mortgage Pros and Cons
The Good Stuff
Can apply for a home loan online in minutes
Offer a digital, paperless loan application process
Also have brick-and-mortar branches in the Midwest
Lots of loan programs to choose from
Offer fully-underwritten pre-approvals to help you win a bidding war
Can pre-lock your rate before you find a property
Excellent customer reviews across ratings sites
A+ BBB rating
Free online mortgage guides, mortgage calculators, and mortgage glossary
Today we’ll take a thorough look at “Waterstone Mortgage,” a residential mortgage lender backed by a billion-dollar depository bank.
Despite being the subsidiary of a large publicly-traded company, they still have the feel of a local, independent mortgage lender.
The main advantage of that backing is a much bigger lending menu, which gives them the ability to offer unique loan products the other guys can’t.
They also pride themselves on being home purchase loan experts, a big plus if you’re attempting to buy in today’s ultra-competitive housing market.
But existing homeowners can benefit from their endless product menu too – let’s learn more to see if they could be a good fit for you.
Waterstone Mortgage Fast Facts
Retail, direct-to-consumer mortgage lender
Offers home purchase financing, refinances, and construction loans
Founded in 2000, headquartered in Pewaukee, Wisconsin
A wholly owned subsidiary of WaterStone Bank SSB
Funded roughly $4.5 billion in home loans last year
Nearly 20% of business comes from New Mexico (2nd largest in the state)
Also very active in Arizona, Florida, and Wisconsin
Licensed in all 50 states and the District of Columbia
Waterstone Mortgage is a retail, direct-to-consumer mortgage lender based in Pewaukee, Wisconsin, which is a suburb of Milwaukee.
They were founded in the year 2000 as a three-person team, and quickly expanded before being sold to Wauwatosa Savings Bank in 2006.
Just two years later, that company changed its name to WaterStone Bank, making them a wholly owned subsidiary.
This means they have the backing of a large, publicly-traded company and the expansive loan menu that comes with it.
Last year, they funded a whopping $4.5 billion in home loans, making them a major mortgage player nationwide.
Despite being headquartered in suburban Milwaukee, they are the second largest mortgage lender in the state of New Mexico, second only to Rocket Mortgage.
Waterstone is licensed to do business nationally, and also quite active in the states of Arizona, Florida, and Wisconsin.
They appear to be very well connected with local real estate agents as they have a 60%+ purchase loan share, which is uncommonly high.
The remainder of their business consists of mortgage refinances and home improvement loans.
How to Apply with Waterstone Mortgage
To begin, you can either visit their website or go to a local branch if one is located near you.
They have physical locations in about 20 states nationwide, so it might be possible to work with a loan originator in person.
Either way, you’ll find a wealth of information online, including a branch and loan officer directory, along with helpful guides and loan calculators.
From there, you’ll have the option to select an individual to work with and apply electronically via a mostly paperless process.
Their digital mortgage is powered by ICE Mortgage Technology (formerly Ellie Mae), a leading fintech company in the home loan space.
It allows you to upload loan documents safely and securely, link financials like a bank account for easy and reliable importing, and eSign all those disclosures.
Once submitted, you’ll be able to check loan status 24/7 and complete most loan tasks electronically, whether it’s ordering the home appraisal or satisfying outstanding conditions.
Thanks to their in-house team of processors, underwriters, and closers, you should be able to close quickly.
In fact, Waterstone Mortgage also developed a “Close On Time Calendar” to give customers an idea of what goes on along the way, and what to expect. But perhaps most importantly, how to close on time!
Those looking to buy a home in this competitive housing market can take advantage of their Platinum Credit Approval, which they call the next best thing after an all-cash offer.
It’s a mortgage pre-approval that involves a robust, upfront underwrite of your loan file to give home sellers peace of mind that you’re a highly-qualified buyer.
There’s also a Waterstone mobile app and a Realtor-exclusive website to help your agent stay in the know as you progress to the finish line.
Simply put, they offer best-in-class technology backed by real humans to ensure you close your home loan quickly and conveniently.
Loan Programs Offered by Waterstone Mortgage
Home purchase loans
Home renovation loans (including jumbo options)
Construction loans (all-in-one financing)
Refinance loans: rate and term, cash out, streamline
Conforming loans
Jumbo loans
FHA loans
VA loans
USDA loans
Manufactured home loans
Doctor mortgages (100% financing options)
Community Experts loan (0% down payment)
Community Heroes loan (1% down payment)
State Bond and Down Payment Assistance programs
Wealth Building Loan
If you go with Waterstone Mortgage, you’ll find no shortage of available loan programs. This is the advantage of being backed by a billion-dollar depository bank.
They offer just about everything under the sun, from home purchase loans to refinances to new construction loans and manufactured home loans.
You can finance any major property type, whether it’s a single-family home, cabin, townhome/condo, or multi-unit investment property.
The full suite of government-backed loan programs (FHA/USDA/VA) is available, along with both conforming and jumbo loan options.
Additionally, they’ve got loan programs tailored specifically for doctors and first responders, and even community experts like accountants and actuaries that require no down payment.
If you’re building, their Single Loan Close Construction program allows you to bundle the cost of the land/lot, construction of the property, and your permanent mortgage.
In term of specific loan types, you can get a fixed-rate mortgage like a 30-year or 15-year fixed, or an adjustable-rate mortgage like a 5/1, 7/1, and 10/1 ARM.
Unique to Waterstone is a so-called “Wealth Building Loan” that features a 20-year loan amortization period attached to either a 7/1 ARM or 10/1 ARM.
It allows homeowners to build equity faster than traditional 30-year mortgages and do so with zero down payment.
Waterstone Mortgage Rates
One slight negative to Waterstone Mortgage is their lack of information when it comes to pricing.
They don’t seem to list their mortgage rates or lender fees online, so it’s hard to know how competitive they are.
To determine that, you’ll need to get in touch with a loan originator to discuss rates and fees before you proceed to the formal application.
Be sure to inquire about any typical costs, such as an application fee or loan origination fee.
And take the time to compare their quoted mortgage APR to that of other banks, lenders, and mortgage brokers.
Once you’ve done your diligence on the mortgage shopping front, you’ll be able to better assess them as a whole.
They appear to offer excellent customer service and a wide product selection, but your mortgage rate will likely stay with you for a long, long time. So make sure it’s low!
Waterstone Mortgage Reviews
On Zillow, Waterstone Mortgage has a nearly-perfect 4.97-star rating out of a possible 5 from over 4,100 customer reviews.
Their score is doubly impressive given the large volume of reviews, and many recent ones indicate that both the mortgage rate and closing costs were lower than expected.
That gives us a nice hint about pricing, which should always be a top consideration when obtaining a mortgage.
You can also find reviews for their individual branches on Google, many of which are perfect 5-star reviews.
For example, their Winter Park, Florida branch location has a 4.9-star rating from over 450 reviews.
They are also an accredited business with the Better Business Bureau (and have been since 2009) and currently hold an ‘A+’ score based on complaint history. So customer service appears to be top notch.
To sum things up, Waterstone Mortgage might be best-suited for a first-time home buyer (or any home buyer) thanks to their wide array of tools and available loan programs.
Their fully-underwritten pre-approvals could give you an edge in a competitive housing market, and their zero-down home loan options are also a plus if you happen to be cash-strapped.
The only real question mark is pricing, as they don’t publicize mortgage rates or lender fees online.
But if they’re competitive with other banks and brokers, they should certainly be a consideration for your home loan needs, whether it’s a home purchase or a refinance.
Waterstone Mortgage Pros and Cons
The Good
Can apply for a home loan online or at a local branch
Licensed to do business nationwide
Their digital mortgage process is mostly paperless
Tons of unique loan programs to choose from including 100% financing
Offer fully-underwritten pre-approvals (good for competitive housing markets)
Today we’ll take a hard look at San Diego, CA-based mortgage broker “Grander Home Loans,” which has some of the best customer reviews I’ve come across.
On all the major ratings websites, they have perfect 5-star reviews, which is a huge testament to their goal of putting the customer first.
At the same time, they say they offer the best combination of mortgage rate, monthly payment, and overall savings.
So it appears you can get the best of both worlds, responsiveness and a competitively-priced mortgage, without sacrificing a thing.
What’s more, they can shop your home loan on your behalf with their many wholesale lender partners so you don’t have to. Read on to learn more.
Grander Home Loans Fast Facts
Mortgage broker that offers home purchase loans and refinances
Founded in 2014, headquartered in San Diego, CA
Currently licensed in nine states nationwide
One of only seven LendingTree Certified Lenders nationwide
Grander Home Loans, Inc. is a mortgage brokerage that offers home purchase loans and mortgage refinances.
This means they connect home buyers and existing homeowners with their wholesale lender partners.
The company has been around since 2014 and is headquartered in San Diego, California in the Mission Valley area.
Their claim to fame, other than having perfect customer reviews, is the fact that they’re one of just seven LendingTree Certified Lenders.
Such lenders have proven that they consistently provide customer satisfaction that is absolutely top notch.
At the moment, they’re licensed in nine states, including Alaska, California, Colorado, Florida, Hawaii, Idaho, Montana, Oregon, and Washington.
It’s unclear if they plan to expand, or simply focus on the states they already do business in.
Aside from their San Diego headquarters, they have an office in Lanai City, Hawaii, which is located on the island of Lanai.
How to Apply with Grander Home Loans
Because they’re a mortgage broker, the loan application process may vary depending on which wholesale partner you wind up with.
But they’ll likely start by providing you with a mortgage rate quote and ask you to electronically complete a loan application and eSign disclosures.
They have a secure upload form on their website that allows you to submit supporting documentation, such as tax returns, bank statements, and so on.
Once submitted, you’ll be able to use this same portal to satisfy any prior-to-doc conditions that are required to close your loan.
They say they provide “regular loan updates and progress reports” throughout the loan process to keep you informed and in the know.
And because customer satisfaction is their number one goal, you should be partnered with a very responsive lending team.
To that end, Grander says it promptly responds to emails and returns phone calls, a common gripe in the mortgage space.
This is especially useful for first-time home buyers and those who have never refinanced, where a little hand-holding goes a long way.
Available Loan Programs at Grander Home Loans
Home purchase loans
Refinance loans: rate and term, cash out, streamline
Conforming loans backed by Fannie Mae and Freddie Mac
High balance loans (those that exceed conforming limit)
Jumbo home loans up to $5 million loan amounts
FHA loans
VA loans
Fixed-rate mortgages: loan terms between 8 and 30 years
Adjustable-rate mortgages: 5/1, 7/1, and 10/1 ARM
When it comes to product choice, Grander Home Loans has lots of loan programs to choose from, including the ability to choose a loan term from 8 to 30 years.
This could allow you to avoid resetting the clock when refinancing, a great way to stay on track if paying your mortgage in full is a priority.
They also offer core first-time home buyer programs, such as Fannie Mae and Freddie Mac’s 97% LTV offerings, along with the FHA’s 3.5% down product.
Those with not-so-great credit can take advantage of an FHA loan with credit score minimums of just 550.
If you’re active duty or a veteran, you can take advantage of a VA loan that requires no money down.
Those purchasing a home or refinancing a mortgage in a more expensive region of the country shouldn’t have any issues thanks to their high balance and jumbo loans, with loan amounts as high as $5 million.
For those sitting on a ton of home equity, they allow cash out up to $1 million.
They lend on all common property types, including single-family homes, vacation homes, condos/townhomes, and 2-4 unit investment properties.
The only major loan program they seem to be missing is USDA loans, which are reserved for home buyers and homeowners in rural areas.
Grander Home Loans Rates
The only area where I wish I knew more is their pricing and fees. They say right on their homepage that they “offer the best combination of rate, payment, term, and overall savings.”
But they don’t post daily mortgage rates on their website, or a list of lender fees that must be paid.
Despite this, my assumption is that they are very competitively priced because mortgage brokers often are, and they have stellar customer reviews.
I doubt they’d have incredible reviews if their pricing was high, or even just so-so.
They also have the advantage of shopping your loan with multiple wholesale lenders at once, instead of simply looking within.
Still, take the time to haggle and negotiate with them and gather mortgage rate quotes from other banks, lenders, and brokers.
Remember, you should compare mortgage brokers too, even if they can shop for you with their partners.
Also be sure to take into account any lender fees, such as a loan origination fee, or required mortgage points for a given rate.
The mortgage APR should give you the complete picture, which you can then compare with other companies during your home loan search.
Grander Home Loans Reviews
Over at LendingTree, where they are just one of seven Certified Lenders, they have a perfect 5-star rating out of a possible 5 from about 300 customer reviews.
Additionally, 100% of former customers recommend them to others, which is a great sign if you want a solid mortgage experience.
With regard to the Certified Lender status, one of the requisites is “providing exemplary service to LendingTree consumers,” while having at least half their staff certified with the company.
Grander Home Loans also achieved “President’s Club” status back in 2020, which is “presented to an elite group of loan officers” based on a commitment to customer excellence and LendingTree best practices.
They’ve also got a perfect 5.0-rating from about 250 Google reviews, which is quite impressive given the volume.
Beyond that, they also have a perfect 5-star ratings on Customer Lobby, Yelp, and Zillow.
On aggregate, they seem to have achieved perfection from a customer satisfaction standpoint.
To sum things up, Grander Home Loans is one of the highest-rated mortgage companies I’ve come across, so if you value customer service, they could be a great choice.
They also operate as a mortgage broker, which means they should offer a hands-on approach and a wide array of loan programs and mortgage rates to choose from.
This could serve both existing homeowners looking to refinance and prospective home buyers, the latter of which may need more guidance than a big bank can offer.
Grander Home Loans Pros and Cons
The Good Stuff
Say they offer competitive pricing
Can shop your loan with multiple lenders because they’re a broker
Lots of loan programs to choose from
Perfect 5-star customer reviews across all ratings websites
BBB accredited business since 2015
LendingTree certified lender (one of just nine nationwide)
Mortgage Q&A: “How many mortgage quotes should I get?”
When it comes to getting the best deal on your mortgage, you can never shop too much.
Just like any other product you may comparison shop for, the more time you put in, the better deal you’ll probably receive.
Sure, it’s a pain in the you know what, but you’re not shopping for a plasma TV.
This is your mortgage, most likely one of the largest financial decisions you’ll make in your life.
And one that can affect your pocketbook for years and years to come depending on how long you keep it.
So not spending a considerable amount of time shopping for one would be very ill advised. Don’t be one of the many individuals who obtains just one mortgage quote!
Look At Mortgage Rates Online and Track Weekly Averages
There’s no specific number of quotes needed to score the best deal
But the more mortgage quotes you receive the better your odds of finding that low rate
A study from Freddie Mac found that even two quotes as opposed to one can save you thousands over the loan term
And 5+ quotes from different lenders has the ability to save you even more
These days, we’ve got the luxury of using the Internet to comparison shop.
Back when, you had to scour the phonebook and make phone call after phone call to check on prices and availability.
I remember doing this to buy a pair of high-tops when I was around 10-years old.
I spent a considerable amount of time trying to track down a pair at the lowest price, phoning up dozens of different shoe stores.
To be honest, I can’t even remember if I got the shoes, but I certainly put in the necessary legwork to ensure I wouldn’t overpay. And those were just shoes…
Nowadays, a simple click of the mouse will allow you do most of that tedious work, though you’ll still have to vet the broker or lender after the fact to make sure the quote is legit and they’re a reliable source.
I recommend checking as many channels as possible to see where mortgage rates are currently pricing.
You can check out today’s mortgage rates from a variety of online lenders, as well as look up weekly averages from the Mortgage Bankers Association (MBA), Freddie Mac, Bankrate, and also Zillow.
Watch them for a few weeks to get a good idea as to how they move and why. But note that they are just averages in most cases, not necessarily a perfect science or ultimately what you’ll receive.
And because mortgage rates can change daily, they may be a little outdated. But they’re still worthwhile to track market averages over time.
Once you have a better idea of what most banks and mortgage lenders are charging for everyday loan scenarios, you’ll need to decide on a loan program as well.
Do you want the standard 30-year fixed, or are you a little more daring and thinking an adjustable-rate mortgage could suit you better?
[30-year fixed vs. ARM]
Knowing which product you’re after will make your search a lot easier, though you can still narrow it down to a couple products and rate shop accordingly.
Calls Banks, Mortgage Brokers, Credit Unions, Online Lenders, You Name It
There are plenty of options to gather mortgage quotes
Including your own bank, credit union, or competing banks
Along with independent mortgage brokers and mortgage bankers
And a slew of online mortgage lenders that make the process quick and easy
Assuming you followed step one above, you should know what most banks and lenders are charging for a typical loan scenario for a variety of home loan programs.
Great! Now it’s time to get your hands on real mortgage rate quotes.
You may be in for a surprise, as those rates you see or hear on TV are often either best case scenario or simply advertising rates aimed at drawing you in.
For example, the rates you see on TV or online may be for a borrower with an 800 credit score and a 40% down payment on an owner-occupied single-family residence. Oh, and a couple mortgage points must be paid at closing too.
Of course, your loan scenario may not be so “vanilla,” so the mortgage rate your quoted could shock you somewhat.
Fret not though; this is why you’re mortgage rate shopping to begin with.
If you’d like, you could start with your local bank or credit union just to get your feet wet. You know, the company where you have your checking and/or savings account.
They probably know the most about you, so they’ll be able to give you a Loan Estimate or pre-approval letter pretty easily to determine how much you can afford and at what rate.
Typically, they offer discounts to existing customers who agree to things like automatic billpay, knowing you’re good for that mortgage payment every month because of the money you’ve got in their bank.
Of course, a lot of times they probably won’t offer the best deal, even with some of those perks thrown in because they’re a big name.
So don’t stop there. Find a mortgage broker or two (I recommend three) and get rate quotes from them as well. See how they stack up against your bank/credit union and go from there.
A broker can shop rates on your behalf, which cuts out some of the legwork, but you still need to compare mortgage brokers too!
Then check out the countless online mortgage lenders out there, many of which won’t be household names.
While you may not have heard of them, there’s a decent chance they can offer lower mortgage rates due to that lack of advertising and the reduced overhead.
If you’re comfortable working with a mortgage lender remotely, they could offer a much better deal than the brick-and-mortar, big name shops.
[Why are mortgage rates different?]
Negotiate, Negotiate, Negotiate Once You Collect Your Quotes
The beauty of multiple mortgage quotes is you create competition
It gives you the real ability to negotiate your rate and fees
Without another quote to compare it to you won’t have much of an argument
Other than begging or ignoring them until they agree to lower their price
The beauty of receiving multiple rate quotes is that you can negotiate. With just one, there’s not much you can do aside from asking/pleading for a lower rate. Well, you can lie too.
But if you’ve got multiple companies vying for your precious business, you can pit them against each other until one comes out on top by offering the lowest rate with the best terms.
Additionally, there are mortgage lender that offer low-rate guarantees, so having other quotes in hand could help you land those deals.
You’ll also grow more confident as you discuss rates and fees with multiple lenders, learning the mortgage lingo as you go.
This should aid in negotiating more effectively if you actually know what you’re talking about and aren’t fooled by the nonsense they’re spouting.
Just be sure to look at all the details when comparing offers, including all costs (lender and third-party fees), the interest rate, and the APR.
[Mortgage rate vs. APR]
It’s not always easy to get an apples-to-apples comparison, so you may actually have to do some math to choose the best deal.
And remember, while price is definitely important, you need a competent bank or broker with the ability to close your home loan!
I know, the whole process is annoying, but as mentioned earlier, this is a huge financial decision, so a little homework can go a long way.
Those who put in the time and effort might get their money’s worth, potentially tenfold.
Read more: 10 Ways to Save Money on Your Next Mortgage
With the start of summer upon us, now may be a great time to evaluate your credit card portfolio. Credit card sign-up bonuses and welcome offers are the quickest and easiest way to rake in lots of points and miles, so we regularly update the roundup of our favorite current offers in our best credit cards guide.
But to help you keep up with an ever-changing list of bonuses, we’ve also compiled a list of the best card offers currently available — especially the ones that are worth an extra look right now because they are at all-time highs or may end soon.
Since many issuers have restrictions on how often you can earn a bonus on a card, it’s important to time your application for when there’s a good offer. Also, higher bonuses don’t always stick around for long, so if you’re considering one of these offers, you’ll want to hop on it sooner rather than later.
Finally, if you’re not ready to jump on a higher-end card, consider these great starter cards or even one with a 0% introductory annual percentage rate (APR) offer.
The best credit card offers for June 2023
Card
Sign-up bonus/welcome offer
Welcome offer value*
Annual fee
The Business Platinum Card® from American Express
120,000 points after you spend $15,000 on eligible purchases with the card within the first three months of card membership.
$2,400.
$695 (see rates and fees).
Ink Business Preferred Credit Card
100,000 points after you spend $15,000 on eligible purchases with the card within the first three months of card membership.
$2,000.
$95.
The Platinum Card® from American Express
80,000 points after you spend $6,000 in the first six months, though you may be able to get a higher bonus through the CardMatch tool (terms apply).
$1,600.
$695 (see rates and fees).
American Express® Green Card
60,000 points after you spend $3,000 on purchases in their first six months of card membership. Also, get 20% back on eligible travel and transit purchases in your first six months to earn up to $200 back.
$1,400 ($1,200 in points plus up to $200 in cash back).
$150 (see rates and fees).
Capital One Venture X Rewards Credit Card
75,000 miles after you spend $4,000 on purchases in the first three months of account opening.
$1,388.
$395.
Capital One Venture Rewards Credit Card
75,000 miles after you spend $4,000 on purchases in the first three months of account opening.
$1,388.
$95.
Chase Sapphire Reserve
60,000 bonus points after you spend $4,000 on purchases in the first three months of account opening.
$1,200.
$550.
Chase Sapphire Preferred Card
60,000 bonus points after you spend $4,000 on purchases in the first three months of account opening.
$1,200.
$95.
American Express® Gold Card
60,000 points after you spend $4,000 in the first six months of card membership, though you may be able to get a higher bonus through the CardMatch tool (terms apply).
$1,200.
$250 (see rates and fees).
Southwest Rapid Rewards Plus Credit Card, Southwest Rapid Rewards Premier Credit Card, and Southwest Rapid Rewards Priority Credit Card
60,000 bonus points plus a 30% off promo code after spending $3,000 on purchases in the first three months from account opening.
$900.
$69 (Plus), $99 (Premier) and $149 (Priority).
United Club Infinite Card
80,000 bonus miles and 1,000 Premier qualifying points (PQP) after you spend $5,000 on purchases in the first three months from account opening. Offer ends Aug. 9.
$880.
$525.
IHG Rewards Premier Business Card
165,000 points after spending $3,000 on purchases in the first three months from account opening.
$825.
$99.
Hilton Honors American Express Surpass® Card
130,000 Hilton Honors bonus points and a free night reward after spending $2,000 in purchases on the card in the first three months of cardmembership. Offer ends July 19.
$780.
$95 (see rates and fees).
* Welcome offer value is determined using TPG valuations and is not provided by nor reviewed by the issuer.
The Business Platinum Card from American Express
This business card stands out not only for its 120,000-point welcome offer but thanks to added travel perks that can easily cover the card’s $695 annual fee (see rates and fees). Cardholders enjoy automatic Gold status in both the Hilton Honors and Marriott Bonvoy loyalty programs, along with access to a wide variety of airport lounges — including Amex Centurion, Priority Pass and Delta Sky Club (when traveling on same-day Delta flights). Enrollment is required for select benefits.
Cardholders also enjoy 5 points per dollar on flights and prepaid hotels booked at American Express Travel, along with 1.5 points per dollar on eligible purchases in select business categories and eligible purchases of $5,000 or more (on up to $2 million of these purchases per calendar year).
Related: Amex refreshes Business Platinum Card with new perks, higher annual fee and a 120,000-point bonus
On top of that, the card comes with up to $200 in annual airline fee statement credits and a 35% points rebate for flights booked through Amex Travel in first or business class on any airline (up to 1 million points back per calendar year), or in any class on the U.S. airline of your choice each year. Non-travel benefits include up to $400 in annual statement credits toward U.S. Dell purchases, up to $360 in credits toward Indeed, up to $150 toward select Adobe purchases and up to $120 toward wireless telephone services.
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Enrollment is required for select benefits.
Read our review of the American Express Business Platinum Card for more information.
Official application link: The Business Platinum Card® from American Expresswith 120,000 points after you spend $15,000 on eligible purchases with the card within the first three months of card membership.
Ink Business Preferred Credit Card
Then there’s the Ink Business Preferred. According to TPG’s valuations, this card’s welcome bonus alone is worth $2,000 since you can take advantage of Chase’s excellent collection of airline and hotel transfer partners. Points redeemed through the Chase travel portal are worth 1.25 cents each, which isn’t bad, either.
Another factor in this card’s favor? Its tremendous earning rates. You’ll earn 3 points per dollar across the following categories on up to $150,000 in combined purchases (1 point per dollar thereafter):
Travel.
Shipping purchases.
Internet, cable and phone services.
Advertising on social media sites and search engines.
Depending on which categories you spend in, you could earn a whopping 450,000 bonus points per year if you maxed out that $150,000 cap.
Among the Ink Business Preferred’s unsung benefits are cellphone protection, primary rental car coverage (when renting for business purposes) and other travel and purchase protections. You can also add employee cards to your account for free.
Read our full review of the Ink Business Preferred Credit Card for more information.
Official application link: Ink Business Preferred Credit Card with 100,000 bonus points after you spend $15,000 on eligible purchases with the card within the first three months of account opening.
The Platinum Card from American Express
Often referred to as the king of the premium travel rewards cards, the Amex Platinum offers a slew of benefits — along with a $695 annual fee (see rates and fees). Cardholders enjoy perks such as automatic Gold status with both Hilton Honors and Marriott Bonvoy plus access to a wide range of airport lounges, including Amex Centurion, Priority Pass and Delta Sky Club (on same-day Delta flights). On top of that, you’ll get up to $200 in annual airline fee statement credits, an up-to-$200 hotel statement credit to use toward prepaid Amex Fine Hotels + Resorts or The Hotel Collection bookings (the latter of which requires a minimum two-night stay) via Amex Travel, and an up-to-$189 Clear Plus membership statement credit — along with numerous other perks. Enrollment is required for select benefits.
Related: It’s a ‘lifestyle’ card now: A closer look at the Amex Platinum’s 6 new benefits
Non-travel benefits include an up-to-$240 digital entertainment statement credit (split into monthly $20 credits) for Audible, The New York Times, SiriusXM, Peacock, The Wall Street Journal and services under the Disney umbrella — including Disney+, ESPN+ and Hulu.
Cardholders also receive an up-to-$155 Walmart+ credit (subject to auto-renewal; Plus Ups are excluded), an up-to-$300 SoulCycle bike credit and an up-to-$300 Equinox statement credit for eligible Equinox memberships (now available as an annual benefit rather than monthly credits). You also receive Uber VIP status and up to $200 in annual Uber Cash (split into monthly $15 credits for U.S. rides and Uber Eats orders plus a $20 bonus in December).
Enrollment is required for select benefits.
Finally, cardholders will enjoy enhanced earning rates on many travel purchases:
5 points per dollar on flights booked directly with airlines or with Amex Travel (on up to $500,000 on these purchases per calendar year).
5 points per dollar on prepaid hotels booked with Amex Travel.
1 point per dollar on other eligible purchases.
And while the current welcome offer provides solid value, be sure to check the CardMatch Tool to see if you can receive an even higher one (offers are targeted and subject to change at any time).
Read our review of the American Express Platinum Card for more information.
Official application link: The Platinum Card® from American Express with 80,000 points after you spend $6,000 on purchases in the first six months of card membership.
The American Express Green Card
The American Express Green Card provides a compelling offering in the mid-tier travel category. With 3 points per dollar on broader travel, restaurants and transit as well as annual statement credits for Clear and LoungeBuddy that more than cover its annual fee, the Green from Amex is a card that modern travelers should consider.
The earning rates and benefits of the American Express Green Card will be most attractive to young professionals and millennials (or millennials at heart) who travel for work, pleasure or both. The card earns 3 Membership Rewards points per dollar on travel, restaurants and transit, so you’ll want to consider this card if a large chunk of your budget goes toward these categories.
The Amex Green also offers annual up to $189 Clear Plus and up to $100 LoungeBuddy statement credits that can more than offset the $150 annual fee (see rates and fees) while making your time in the airport more efficient and relaxing. If you can utilize these statement credits, the card can easily be a worthwhile addition to your purse or wallet.
Read our review of the Amex Green for more information.
Official application link: Amex Green with 60,000 Membership Rewards points after you spend $3,000 on purchases in your first six months of card membership. Also, get 20% back on eligible travel and transit purchases in your first six months to earn up to $200 back.
Capital One Venture X Rewards Credit Card
The Venture X card is Capital One’s premium rewards card and offers great earning rates and incredible perks.
Aside from a hefty welcome bonus of 75,000 miles after spending $4,000 on purchases in the first three months – worth about $1,388 according to our valuations thanks to Capital One’s excellent airline and hotel transfer partners – the card gives members up to $300 back in statement credits annually for bookings made through Capital One Travel and 10,000 bonus miles every account anniversary, starting on their first anniversary (worth $100 toward travel, or $185 by our valuations).
As for earning rates, the Venture X racks up 10 miles per dollar on hotels and car rentals booked via Capital One Travel, 5 miles per dollar on flights booked via Capital One Travel, and an unlimited 2 miles per dollar on everything else.
Frequent travelers will also enjoy taking advantage of access to Capital One’s developing network of airport lounges as well as the ability to enroll for Priority Pass membership for entry into more than 1,300 lounge locations worldwide (though this no longer includes participating restaurants). It also added the ability to access Plaza Premium lounges worldwide in 2022 and launched The Premier Collection in 2023, giving cardmembers on-property perks at a curated set of luxury hotels.
Read our review of the Capital One Venture X card for more information.
Official application link: Capital One Venture X Rewards Credit Card with 75,000 bonus miles after you spend $4,000 on purchases in the first three months from account opening.
Capital One Venture Rewards Credit Card
The Venture Rewards packs a pretty good punch for a mid-tier credit card. It earns a flat 2 miles per dollar spent on all purchases worldwide, but you can earn 5 miles per dollar on hotels and car rentals booked through Capital One Travel. The miles you earn with this card can be transferred to Capital One’s 17 airline and three hotel partners or redeemed through the Capital One Travel portal.
The card stands out for offering an application fee credit for Global Entry or TSA PreCheck every four years; many other cards that offer this benefit have annual fees of $400 or more. This TSA PreCheck/Global Entry application fee credit alone is worth up to $100. When making everyday purchases, you may also get Warranty Manager Service which can be used for extended warranty protection. The Venture Rewards card doesn’t impose foreign transaction fees, so you can use the card overseas without accumulating extra charges.
Read our review of the Capital One Venture Rewards Card for more information.
Official application link: Capital One Venture Rewards Credit Card with 75,000 bonus miles after you spend $4,000 on purchases in the first three months from account opening.
Chase Sapphire Reserve
This is one of the best premium credit cards available.
It earns a whopping 10 points per dollar on Lyft (through March 2025), Chase Dining booked through Ultimate Rewards, and hotel and car rental purchases through the Ultimate Rewards Travel portal. Cardholders also earn 5 points per dollar on airline travel booked through the Ultimate Rewards Travel portal, 3 points per dollar on travel (after using the $300 travel credit) and dining, and 1 point per dollar on everything else.
Chase defines travel and dining quite broadly, including everything from parking fees to Airbnb stays and food delivery orders. Perks of the card include a $300 annual travel credit, Priority Pass membership, a $5 monthly DoorDash in-app credit (through December 2024), a complimentary DashPass membership and an impressive array of travel protections.
Read our review of the Chase Sapphire Reserve for more information.
Official application link: Chase Sapphire Reserve with 60,000 points after you spend $4,000 on purchases in the first three months of card membership.
Chase Sapphire Preferred Card
If you can’t justify a high annual fee or want a solid card with an appealing set of perks, the Chase Sapphire Preferred is an ideal fit. It earns 5 points per dollar on all travel purchased through Chase Ultimate Rewards; 3 points per dollar on dining, including eligible delivery services, takeout and dining out; 3 points per dollar on select streaming services; 3 points per dollar on online grocery purchases (excluding Target, Walmart and wholesale clubs); 2 points per dollar on all other travel; and 1 point per dollar on all other purchases.
The points you earn with this card can be transferred to Chase’s airline and hotel partners or redeemed for 1.25 cents each through the Chase Ultimate Rewards portal. Benefits include a $50 annual credit on hotel stays purchased through Ultimate Rewards, at least 12 months of DashPass membership (when activated by Dec. 31, 2024), primary rental car coverage, up to $500 in trip delay reimbursement if you’re delayed more than 12 hours or overnight, up to $10,000 in trip cancellation and interruption insurance and up to $100 per day for up to five days in baggage delay reimbursement if your bag is delayed more than six hours.
Read our review of the Chase Sapphire Preferred for more information.
Official application link: Chase Sapphire Preferred with 60,000 points after you spend $4,000 on purchases in the first three months from account opening.
American Express® Gold Card
The Amex Gold card is a favorite of many TPG staffers thanks (in large part) to its terrific earning rates:
4 points per dollar on dining at restaurants (including takeout and delivery in the U.S.)
4 points per dollar at U.S. supermarkets on up to $25,000 in purchases per calendar year (1 point per dollar after that).
3 points per dollar on flights booked directly with airlines or through Amex Travel.
1 point per dollar on all other eligible purchases.
The card also offers up to $120 in annual credit for Uber rides and Uber Eats purchases and up to $120 in statement credits for select dining purchases (enrollment is required for select benefits) — all for a manageable annual fee of $250 (see rates and fees)
And while it’s not providing a limited-time bonus for new cardmembers, you can often find elevated welcome offers through the CardMatch tool. The card currently features a public welcome offer of 60,000 points after you spend $4,000 on eligible purchases within the first six months of card membership. However, some new customers can earn a 75,000-point or even 90,000-point welcome offer via the CardMatch tool after meeting the same minimum spending requirements. Note that these elevated offers are targeted and subject to change at any time.
Alternatively, you can refer a friend through the Amex referral program — and when your friend applies for a new account by June 7, you can earn an additional +5 rewards per dollar (as either points or cash back, depending on the card) on eligible U.S. supermarket purchases for three months after they’re approved (starting from the first date the referred friend’s account is opened), on up to $25,000.
Additionally, new applicants for the Amex Gold through a referral link will be eligible for an up to $200 statement credit after reaching minimum spending requirements, on top of that card’s usual welcome offer.
Read our review of the American Express Gold Card for more information.
Official application link: American Express® Gold Card with 60,000 points after you spend $4,000 in the first six months of card membership.
Southwest personal cards
All three personal of Southwest’s personal credit cards — the Rapid Rewards Plus, Rapid Rewards Premier and Rapid Rewards Priority — are currently sporting identical welcome offers: 60,000 bonus points plus a 30% off promo code after spending $3,000 on purchases in the first three months from account opening. This is the first time Southwest has offered a promo code as part of a sign-up bonus on a credit card.
The code will appear directly in your Southwest.com account within eight weeks of meeting the spending requirement. It can be used — only once — on a single one-way or round-trip Wanna Get Away, Wanna Get Away Plus, Anytime and Business Select fare, and is available for use until October 31, 2024.
Given it is a single-use promo code, it would be best to save this for a more expensive ticket. You’ll get the biggest savings when using the code for round-trip travel and/or during peak travel periods like the summer or the holidays.
Read more about the three cards and this limited-time offer.
Official application link: Southwest Rapid Rewards Plus
Official application link: Southwest Rapid Rewards Premier
Official application link: Southwest Rapid Rewards Priority
United Club Infinite Card
The United Club Infinite Card is the ideal card for United lounge access — bar none.
The United Club Infinite Card’s $525 annual fee sounds high until you factor in the United Club membership included with the card. Membership normally costs $650 per year for non-elite members.
In addition, one of the primary disadvantages of many airline credit cards is a low return on spending, even on branded purchases, as most airline cards only offer 2 or 3 points per dollar on airline purchases. But the United Club Infinite Card sets a new standard with an impressive 4 points per dollar on United purchases.
If you spend thousands of dollars on United flights each year, the United Club Infinite Card is worth considering.
Read our review of the United Club Infinite for more information.
Official application link: United Club Infinite with 80,000 bonus miles and 1,000 Premier qualifying points (PQP) after you spend $5,000 on purchases in the first three months from account opening. Offer ends Aug. 9.
IHG Rewards Premier Business Card
New applicants for the IHG Rewards Premier Business card can earn 165,000 bonus points after spending $3,000 on purchases within three months from account opening.
Your bonus will come in the form of IHG points, which TPG values at half a cent each. Thus, this bonus is worth $825.
Generally speaking, you won’t get fantastic earning rates on most hotel credit cards — especially on broad categories like dining and groceries. That said, the IHG Premier Business card could be a solid option, especially at participating IHG properties.
When you use your card at IHG hotels and resorts, you’ll earn 10 points per dollar spent on your stay. This is in addition to the 10 base points that all IHG One Rewards members accrue at most participating brands. And since you have automatic Platinum Elite status with the card, that’ll give you another 60% bonus on top of the base points. When combined, that translates to a total of 26 points per dollar spent on most IHG stays — or a 13% return on spending, based on TPG’s valuations.
Beyond IHG purchases, cardholders of the IHG Premier Business will earn points at the following rates:
5 points per dollar spent on travel, dining and gas purchases.
5 points per dollar in select business categories, such as social media and search engine advertising and at office supply stores.
3 points per dollar spent on all other purchases.
You’ll also receive a free night certificate (worth up to 40,000 points) every year when you renew your card and enjoy your fourth night free on award stays of four nights (or longer)
Read our full review of the IHG Rewards Premier Business for more information.
Official application link: IHG Rewards Premier Business card with 165,000 bonus points after spending $3,000 on purchases within three months from account opening.
Hilton Honors American Express Surpass® Card
The Hilton Honors American Express Surpass® Card provides solid earnings at Hilton properties and automatic Hilton Gold elite status, which offers complimentary breakfast, increased earnings and space-available upgrades when you stay at Hilton properties.
Hilton Honors Gold status is one of the best mid-tier hotel loyalty statuses you can obtain. As a Hilton Gold elite member, you’ll get complimentary breakfast, space-available room upgrades and improved earnings when staying at Hilton brands. Luckily, you can easily earn and maintain Hilton Gold status since it is an automatic perk of the Hilton Honors American Express Surpass Card.
The Hilton Surpass card is an ideal choice for those who stay at Hilton properties often and want a cobranded credit card with a modest annual fee and valuable perks.
Read our full review of the Hilton Surpass for more information.
Official application link: Hilton Surpass with 130,000 bonus points and a free night reward after spending $2,000 in purchases on the card in the first three months of cardmembership. Offer ends July 19.
*Bonus offer value is based on TPG valuations and not provided by issuers.
For Capital One products listed on this page, some of the above benefits are provided by Visa® or Mastercard® and may vary by product. See the respective Guide to Benefits for details, as terms and exclusions apply
For rates and fees of the Amex Platinum card, click here. For rates and fees of the Amex Business Platinum card, click here. For rates and fees of the Amex Gold card, click here.
For rates and fees of the Amex Green card, click here.
For rates and fees of the Hilton Honors Amex Surpass, click here.
Additional reporting by Ryan Wilcox and Eric Rosen.