“People want to make money fast, but it doesn’t happen that way.” — Warren Buffett
Over Christmas, I read Roger Lowenstein’s fantastic biography of Warren Buffett, one of my financial heroes. Because I currently prefer to invest through index funds, it was fascinating to read how Buffett has been able to make billions by purchasing individual stocks.
Next, I picked up the new book from David and Tom Gardner: The Motley Fool Million Dollar Portfolio. It was the perfect follow-up to reading about Buffett. “This book is about picking great stocks,” write the authors in the introduction, and it’s true. Over the subsequent pages, they describe a variety of techniques for finding individual stocks that are worthy of investment (and not just speculation).
Stocks that don’t suck I don’t write much at Get Rich Slowly about investing in individual stocks. For one thing, I have a pathetic track record in choosing good companies. In the past, I’ve been a speculator and not an investor. Some of my choices include:
CRA, at its peak
PALM, on the day of its IPO
WAMU in the autumn of 2007
SHRP, last January
Fortunately, I’ve never had huge sums to invest in these speculative bids. All the same, I’ve lost thousands of dollars in bids to get rich quickly in the stock market. Because of my experience, I’ve come to admire the virtues of indexed mutual funds.
All the same, I recognize that it is possible to build a great investment portfolio from individual stocks. Many GRS readers are interested in doing just that. And I, too, would like to allocate some portion of my money to buying stocks — now that I have the urge to speculate out of my blood. In their book, the Gardners write:
If you have the time, ability, and interest, individual stock investing is the single best way to build you own million-dollar portfolio.
Though the authors advocate picking individual stocks, they’re as wary of fees as any index fund investor. They believe active trading is dumb. They’re advocates of buy-and-hold. The Gardners also write that there are two components to investing well:
Picking the right stocks.
Building a balanced portfolio (i.e., diversifying).
“In the end,” they write, “you want 100% of your money invested in companies that don’t suck, and 0% in companies that do.”
Investment strategies Each chapter of Million Dollar Portfolio explores a specific investment strategy. The authors note that “each [strategy], practiced well, can and does beat the market.” Some of the methods covered include:
Dividend investing, which involves buying stocks that produce consistent income through the use of “dividends”. MDP argues that dividends are the investment world’s “allowance”. When you own a dividend stock, you receive a periodic payment just for investing.
Value investing focuses on buying companies trading for less than what they’re worth. It’s about buying good companies at a great price. “The excitement of blue-chip value investing comes from looking at long-term charts of what value stocks do as a group over a period of decades.”
Small-cap investing attempts to find “hidden gems” — stocks from smaller companies that tend to be ignored by large institutional investors.
Growth investing. Growth stocks are those expected to produce above-average earnings over the near future. Increased earnings lead, in theory, to increased profits, and to higher share prices.
International investing, which allows you not only to diversify, but also to find stocks in other countries that might be better than those in our own.
The authors lay out the basic techniques of each style, and then provide case histories. Along the way, they explain investing concepts like P/E ratios, book value, “market cap”, rebalancing, and more. Though they write about individual stocks and not index funds, much of the advice is familiar: buy and hold, diversify, etc.
Million dollar portfolio Million Dollar Portfolio includes more than just information about choosing stocks. The book also features:
A chapter about CAPS, the Motley Fool stock-researching tool (which Get Rich Slowly has covered before).
A discussion of asset allocation and diversification.
A short section on the financial collapse of 2008. The Gardners look at the causes, the reactions of big investors, and the prospects for small investors like you and me.
The Gardners also stress the importance of investing as soon as possible. They write that the biggest mistakes that American investors make are:
Never starting.
Starting too late.
Picking poor stocks.
As many have argued, the best time to begin investing is now, whenever now may be. Because of the power of compounding, time is the investor’s best friend.
I was ready to hate this book, but I didn’t. I found it fascinating. I loved the information about how to evaluate stocks. I’m not ready to abandon index funds, but I am eager to learn more about dividend investing, the method that seems best suited to my personality and goals.
I also like that the book doesn’t just tout successes. Each chapter describes a particular investment strategy, explains the method, and then illustrates it with two or three successes. But each chapter also includes a real-life mistake the authors have made. These examples of choices gone wrong are often more instructive than the picks that worked!
Note: I recently had a chance to interview author David Gardner. Look for an excerpt from that conversation later today.
On 02 August 2005, my friend Frank and his partner awoke at 2:45 a.m. to the dog barking and a neighbor knocking on their door. The apartment complex was on fire. They grabbed their dog and whatever they could carry and ran from the building.
“We lost everything,” he says. Later they’d find out that it was arson. A former employee of the apartment complex stole rent checks and set the office on fire. Frank was moving into a new apartment in ten days, and the new complex agreed to let them move in early. “We moved in with a plastic bag of groceries, paid for with a $50 food voucher from the Red Cross,” he says. The other 70 displaced tenants stayed in Red Cross shelters.
To make matters worse, Frank didn’t have renters insurance. “We didn’t think we’d ever need it,” he says. “You don’t see why you should pay this extra bill until you’re in a situation where you need it.” They had to start over from scratch.
Why Renters Skip the Insurance
There are any number of reasons renters don’t think insurance is a necessary expense. I myself didn’t have a policy until Frank’s situation motivated me to get one. Common reasons renters forgo an insurance policy include the following:
“What are the odds anything will happen?” The odds are not in your favor. The Bureau of Justice Statistics reports that renters are 50 percent more likely to be burglarized than homeowners.
“My landlord has insurance.” That means that your landlord (or condo association) has their valuables — the building — protected. Your belongings are not covered.
“I can’t afford renters insurance.” Many people are willing to spend a couple hundred dollars on clothes, but won’t spend the cash to protect themselves from the risk of losing everything they own. It’s possible to find a policy for $10-12 per month, though your premium will depend on location, the deductible, the insurance company, and coverage needs.
There are ways to lower the cost of coverage, including raising your deductible (make sure you can afford it, though) and having protective devices such as smoke detectors, extinguishers, and security alarms. Some insurance companies offer discounts to senior citizens. Also look for a multi-line discount, which is a discount for buying more than one type of policy from the same company (e.g., renters insurance and auto insurance).
I suspect that the main reason most people don’t have a policy, though, is that they don’t understand how renters insurance works, or why they need it.
Renters Insurance 101
Renters need a HO-4 policy. Condominium owners need a HO-6 policy. Both will cover personal property loss from “named perils,” which is insurance-speak for what you’re insured against. Your policy will likely include the following named perils:
Fire and lightning
Windstorm and hail
Smoke
Vandalism and malicious mischief
Theft
Accidental discharge of water
Other named perils covered sound like scenes from Die Hard (explosion, riot, damage caused by air crafts and falling objects), but I suppose you never know when German radical activists might terrorize your Christmas party.
Renters insurance also includes liability protection, which covers medical expenses for a person injured on your property and legal defense, if necessary. Additionally, if your apartment or condo becomes uninhabitable due to a named peril, your coverage will pay for somewhere to live in the meantime.
What is not covered: If you live an an area prone to floods, earthquakes, or hurricanes, you may need to purchase a rider, or separate policy. Also, if you have valuables that would exceed your policy limit, such as expensive jewelry or antiques, you’ll need a rider to recover the full loss.
Buying a Policy
Shopping for renters insurance is similar to shopping for other types of policies. Here are the basic steps:
Take inventory. This seems to be the step that most of us dread, but it’s where we should start. (Confession: I haven’t done it yet. It’s been languishing on my to-do list for almost a year now, but I’m going to make it a top priority.) If you lost everything, it’d be awful to have to recall every item you owned and it’s value. Better to document it. Here’s the plan of action:
Photograph or videotape each room.
List the value and serial and model number of items.
Attach receipts, if you have them.
Save the list and the photos or video to a DVD, and make at least three copies. Keep one copy in a fireproof place, one at an off-site location (could be a parent’s house or a safe-deposit box), and send one to your insurer.
There also are software programs that walk you through the process. The Insurance Information Institute provides free inventory software that helps you complete a room-by-room inventory.
Prepare. Write down a set of questions you want to ask your potential insurance providers. Some suggestions include:
Do you have brochures or any information you can send me in the mail? (Keep the ones from insurers that appear to be a good fit and use them to compare each provider’s policies.)
What could cause my rates to increase?
What discounts do you offer?
Does the liability insurance cover legal defense and medical expenses?
Do you pay actual cash value (ACV) or replacement cost coverage? (ACV coverage pays what your property was worth at the time it was destroyed or stolen, minus the deductible. Replacement cost coverage pays what it will cost to replace the items, minus the deductible. It costs more in premiums, but pays more if you file a claim.)
Do you offer separate policies for roommates? (Alternatively, talk to your roommate about splitting the cost of a policy.)
Shop around. To find the right provider and policy, consider the following:
Contact the insurance company that provides your auto insurance policy. Ask about multi-line discounts.
Call your local bank. Some banks offer insurance policies.
Search “renters insurance” online. Most providers have Web sites that give you a free quote.
Ask friends and neighbors which company they use, and if they are happy with their experience.
Updating Your Policy
Renters insurance is like many other forms of insurance – not fun to think about. But it isn’t a Ron Popeil rotisserie — don’t set it and forget it. Stay in touch with your agent to make sure you’re getting the best deal and taking advantage of new options or discounts. Also, be sure to contact her if your living situation changes, as in the following situations:
You moved. Each residence requires a unique policy.
You got a roommate: human or furball. You’ll need to decide on a separate or shared policy for the former. Make sure the latter is listed in your liability coverage.
You bought an expensive bauble or a pricey new toy. You need to have it listed in your policy, or you might need a separate rider to cover it.
It’s easier than you might think to find an affordable renters policy with good coverage, and it’s time and money well-spent. As my friend Frank says, “It’s the cheapest bill you’ll have. For very little money, we could have replaced everything we lost.”
If you are a renter, do you have renters insurance? If not, is there a reason you don’t have it?
My husband and I are in the process of building a home on 4.5 acres in the Texas hill country. At the moment, we’re still in the planning phase — not quite ready for blueprints.
Last month, our architect asked us to start thinking about the make and model of the kitchen appliances we want for our home. Visions of sleek, Thermador cooktops and double ovens danced in my head. Even when I saw the hefty price tag, I thought maybe we could find other ways to cut back so that we could afford the dream oven. After all, we’re both avid cooks. To us, eating well is one of the best ways to enjoy life. There’s no doubt we’d use it, so the purchase makes sense. Right?
Reality Check From a Minimalist
Then I happened upon an article by Mark Bittman, who writes The Minimalist column in The New York Times. In “So Your Kitchen is Tiny. So What?” he describes how he makes do with 42 square feet of kitchen space, precious little counter space, and a stove that sometimes doubles as storage for pots and pans. It is in this space that he develops most of the recipes for his cookbooks.
But when he posted a photo of his kitchen on his blog, readers were shocked. Bittman writes:
[Chefs and food writers] know that when it comes to kitchens, size and equipment don’t count nearly as much as devotion, passion, common sense and, of course, experience.
To pretend otherwise — to spend tens of thousands of dollars or more on a kitchen before learning how to cook, as is sadly common — is to fall into the same kind of silly consumerism that leads people to believe that an expensive gym membership will get them into shape or the right bed will improve their sex life. As runners run and writers write, cooks cook, under pretty much any circumstance.
With my feet firmly back on the ground, the fancy cooktop and double oven were erased from our kitchen plans. We don’t need top-of-the-line appliances to do what we love. Sure, I’ll have to cope with the quirky nuances of our oven, which loves to cook my cupcakes unevenly just to spite me, but I’ve learned its ways and I work around it. We know where the hot spots are on the stovetop, and we’ve learned how to position the racks just so for even browning. Surely if we’ve managed with a slightly cantankerous oven for this long, we’d be just fine with a new, moderately-priced range.
We do love to cook — and we like to think we’re pretty good at it — but we don’t need a 36″ Thermador to let the world know that, hey, in case you weren’t aware, we’re serious about food. That wasn’t my conscious thought as I was drooling over appliances at Lowe’s, but Bittman’s article made me question my motives (and probably saved me a couple thousand dollars). Anything that could be cooked on a fancier stove can be cooked on a standard one.
Curbing Wants, Focusing on Needs
Because we’re building a house, it dawned on me that this is just the beginning of a long list of decisions we’ll have to make — each one with a price tag. Our goal is to keep expenses down as much as possible so that we don’t feel owned by our mortgage payment. We want to pay off the house early. We want to travel. We want the flexibility that a lower house payment affords us. My fear is that we’ll be faced with so many decisions that we might lose sight of our goals.
To help us stay on track, I started thinking about questions to ask ourselves as we’re faced with more and more building decisions. I organized the set of questions into a flowchart, which we’ll use as a tool to help ignore emotions and evaluate need.
My “Should I Buy It?” Flowchart
Let’s look at how this would work using my cooktop example:
First, we’d ask ourselves whether we can afford it. Technically, yes, we could.
Is it something we need? Yes, our house will need a cooktop of some sort.
Is there a less expensive option? Yes, a standard range is much less expensive.
Is the alternative durable? Yes, there are durable ranges. (We researched Consumer Reports articles on ranges for their top picks.)
Our result? The flowchart suggests we should purchase the less expensive option.
This chart could be used for small, personal purchases, as well. For example, I’ve been coveting a blue YogiToes towel for my yoga practice. Can I afford it? Yes. Is it something I need or lack? No. I have one in red. Flowchart says don’t buy it.
I know we’ll want a few nicer features in our home, but it’s important that our spending decisions are made consciously. Little upgrades here and there could easily add up to a sizable mortgage in the end. If there’s one thing I’ve learned from being in credit card debt, it’s that the seemingly small things accumulate quickly. The only way to combat this is to be conscious of what we buy — and why we are buying it by constantly keeping a check on our credit report.
Average mortgage rates tumbled yesterday following a first-class inflation report. In some cases, they are now back below 7% for an excellent borrower wanting a conventional, 30-year, fixed-rate mortgage. Phew!
First thing, markets were signaling that mortgage rates today might fall but perhaps only a little. However, these early mini-trends often switch speed or direction later in the day.
Current mortgage and refinance rates
Program
Mortgage Rate
APR*
Change
Conventional 30-year fixed
7.122%
7.147%
+0.15
Conventional 15-year fixed
6.297%
6.321%
+0.1
Conventional 20-year fixed
7.34%
7.403%
+0.03
Conventional 10-year fixed
6.872%
6.985%
+0.05
30-year fixed FHA
7.065%
7.685%
+0.02
15-year fixed FHA
6.503%
6.972%
+0.16
30-year fixed VA
6.75%
6.959%
+0.25
15-year fixed VA
6.625%
6.965%
Unchanged
5/1 ARM Conventional
6.75%
7.266%
Unchanged
5/1 ARM FHA
6.75%
7.532%
+0.11
5/1 ARM VA
6.75%
7.532%
+0.11
Rates are provided by our partner network, and may not reflect the market. Your rate might be different. Click here for a personalized rate quote. See our rate assumptions See our rate assumptions here.
Should you lock a mortgage rate today?
The chances of mortgage rates falling far and for long later this year improved yesterday. That day’s inflation report helped a lot.
But I reckon we’ll probably need a heap more similarly rate-friendly data in order to bring about that significant and sustained fall. And, while it’s possible such a heap will be delivered quickly, it’s probably more likely we’ll see any improvements late this year or sometime in 2024.
So, my personal rate lock recommendations remain:
LOCK if closing in 7 days
LOCK if closing in 15 days
LOCK if closing in 30 days
LOCK if closing in 45 days
LOCK if closing in 60days
However, with so much uncertainty at the moment, your instincts could easily turn out to be as good as mine — or better. So let your gut and your own tolerance for risk help guide you.
>Related: 7 Tips to get the best refinance rate
Market data affecting today’s mortgage rates
Here’s a snapshot of the state of play this morning at about 9:50 a.m. (ET). The data, compared with roughly the same time yesterday, were:
The yield on 10-year Treasury notes tumbled to 3.81% from 3.91%. (Very good for mortgage rates.) More than any other market, mortgage rates typically tend to follow these particular Treasury bond yields
Major stock indexes were higher. (Bad for mortgage rates.) When investors buy shares, they’re often selling bonds, which pushes those prices down and increases yields and mortgage rates. The opposite may happen when indexes are lower. But this is an imperfect relationship
Oil prices decreased to $75.65 from $75.94 a barrel. (Neutral for mortgage rates*.) Energy prices play a prominent role in creating inflation and also point to future economic activity
Goldprices rose to $1,964 from $1,959 an ounce. (Neutral for mortgage rates*.) It is generally better for rates when gold prices rise and worse when they fall. Gold tends to rise when investors worry about the economy.
CNN Business Fear & Greed index — held steady at 81 out of 100. (Neutral for mortgage rates.) “Greedy” investors push bond prices down (and interest rates up) as they leave the bond market and move into stocks, while “fearful” investors do the opposite. So lower readings are often better than higher ones
*A movement of less than $20 on gold prices or 40 cents on oil ones is a change of 1% or less. So we only count meaningful differences as good or bad for mortgage rates.
Caveats about markets and rates
Before the pandemic and the Federal Reserve’s interventions in the mortgage market, you could look at the above figures and make a pretty good guess about what would happen to mortgage rates that day. But that’s no longer the case. We still make daily calls. And are usually right. But our record for accuracy won’t achieve its former high levels until things settle down.
So, use markets only as a rough guide. Because they have to be exceptionally strong or weak to rely on them. But, with that caveat, mortgage rates today might fall. However, be aware that “intraday swings” (when rates change speed or direction during the day) are a common feature right now.
Important notes on today’s mortgage rates
Here are some things you need to know:
Typically, mortgage rates go up when the economy’s doing well and down when it’s in trouble. But there are exceptions. Read ‘How mortgage rates are determined and why you should care’
Only “top-tier” borrowers (with stellar credit scores, big down payments, and very healthy finances) get the ultralow mortgage rates you’ll see advertised
Lenders vary. Yours may or may not follow the crowd when it comes to daily rate movements — though they all usually follow the broader trend over time
When daily rate changes are small, some lenders will adjust closing costs and leave their rate cards the same
Refinance rates are typically close to those for purchases.
A lot is going on at the moment. And nobody can claim to know with certainty what will happen to mortgage rates in the coming hours, days, weeks or months.
What’s driving mortgage rates today?
Yesterday
Yesterday’s consumer price index (CPI) was a real tonic for mortgage rates. Comerica Bank’s chief economist said that “the fever is breaking“ for inflation.
And The Wall Street Journal (paywall) suggested: “Inflation cooled last month to its slowest pace in more than two years, giving Americans relief from a painful period of rising prices and boosting the chances that the Federal Reserve will stop raising interest rates after an expected increase this month.“
Note that the Journal’s writers (and many others) still expect a rise in general interest rates on Jul. 26. And that might limit how far mortgage rates can fall in the short term.
But other things could also limit the extent and duration of further decreases in mortgage rates. More and more people are talking up the possibility of a “soft landing.“ That refers to the Fed successfully driving down inflation without throwing the country into a recession.
But those of us wanting lower mortgage rates were kind of hoping for a recession. Of course, we didn’t want the bad stuff for the wider population. But mortgage rates tend to fall when the economy is in trouble and rise when it’s doing well.
So, while some falls in mortgage rates might be on the cards later in the year or in 2024, they might not be as big as we’d once been able to hope.
The rest of this week
This morning’s producer price index (PPI) for June was nothing like as important to mortgage rates as yesterday’s CPI. It and tomorrow’s import price index (IPI) are generally seen as secondary inflation measures. But, with markets hyper-sensitive to inflation news right now, they’re worth observing.
Today’s PPI was probably good for mortgage rates. The headline figure (PPI for final demand) came in at 0.1% in June, compared with the expected 0.2%. Just don’t expect it to have as positive an effect as yesterday’s news.
Please read the weekend edition of this daily report for more background on what’s happening to mortgage rates.
Recent trends
According to Freddie Mac’s archives, the weekly all-time low for mortgage rates was set on Jan. 7, 2021, when it stood at 2.65% for conventional, 30-year, fixed-rate mortgages.
Freddie’s Jul. 6 report put that same weekly average at 6.81%, up from the previous week’s 6.71%. But Freddie is almost always out of date by the time it announces its weekly figures.
In November, Freddie stopped including discount points in its forecasts. It has also delayed until later in the day the time at which it publishes its Thursday reports. Andwe now update this section on Fridays.
Expert forecasts for mortgage rates
Looking further ahead, Fannie Mae and the Mortgage Bankers Association (MBA) each has a team of economists dedicated to monitoring and forecasting what will happen to the economy, the housing sector and mortgage rates.
And here are their rate forecasts for the current quarter (Q2/23) and the following three quarters (Q3/23, Q4/23 and Q1/24).
The numbers in the table below are for 30-year, fixed-rate mortgages. They were both updated in June.
In the past, we included Freddie Mac’s forecasts. But it seems to have given up on publishing those.
Forecaster
Q2/23
Q3/23
Q4/23
Q1/24
Fannie Mae
6.5%
6.6%
6.3%
6.1%
MBA
6.5%
6.2%
5.8%
5.6%
Of course, given so many unknowables, the whole current crop of forecasts might be even more speculative than usual. And their past record for accuracy hasn’t been wildly impressive.
Find your lowest mortgage rate today
You should comparison shop widely, no matter what sort of mortgage you want. Federal regulator the Consumer Financial Protection Bureau found in May 2023:
“Mortgage borrowers are paying around $100 a month more depending on which lender they choose, for the same type of loan and the same consumer characteristics (such as credit score and down payment).”
In other words, over the lifetime of a 30-year loan, homebuyers who don’t bother to get quotes from multiple lenders risk losing an average of $36,000. What could you do with that sort of money?
Mortgage rate methodology
The Mortgage Reports receives rates based on selected criteria from multiple lending partners each day. We arrive at an average rate and APR for each loan type to display in our chart. Because we average an array of rates, it gives you a better idea of what you might find in the marketplace. Furthermore, we average rates for the same loan types. For example, FHA fixed with FHA fixed. The end result is a good snapshot of daily rates and how they change over time.
How your mortgage interest rate is determined
Mortgage and refinance rates vary a lot depending on each borrower’s unique situation.
Factors that determine your mortgage interest rate include:
Overall strength of the economy — A strong economy usually means higher rates, while a weaker one can push current mortgage rates down to promote borrowing
Lender capacity — When a lender is very busy, it will increase rates to deter new business and give its loan officers some breathing room
Property type (condo, single-family, town house, etc.) — A primary residence, meaning a home you plan to live in full time, will have a lower interest rate. Investment properties, second homes, and vacation homes have higher mortgage rates
Loan-to-value ratio (determined by your down payment) — Your loan-to-value ratio (LTV) compares your loan amount to the value of the home. A lower LTV, meaning a bigger down payment, gets you a lower mortgage rate
Debt-To-Income ratio — This number compares your total monthly debts to your pretax income. The more debt you currently have, the less room you’ll have in your budget for a mortgage payment
Loan term — Loans with a shorter term (like a 15-year mortgage) typically have lower rates than a 30-year loan term
Borrower’s credit score — Typically the higher your credit score is, the lower your mortgage rate, and vice versa
Mortgage discount points — Borrowers have the option to buy discount points or ‘mortgage points’ at closing. These let you pay money upfront to lower your interest rate
Remember, every mortgage lender weighs these factors a little differently.
To find the best rate for your situation, you’ll want to get personalized estimates from a few different lenders.
Are refinance rates the same as mortgage rates?
Rates for a home purchase and mortgage refinance are often similar.
However, some lenders will charge more for a refinance under certain circumstances.
Typically when rates fall, homeowners rush to refinance. They see an opportunity to lock in a lower rate and payment for the rest of their loan.
This creates a tidal wave of new work for mortgage lenders.
Unfortunately, some lenders don’t have the capacity or crew to process a large number of refinance loan applications.
In this case, a lender might raise its rates to deter new business and give loan officers time to process loans currently in the pipeline.
Also, cashing out equity can result in a higher rate when refinancing.
Cash-out refinances pose a greater risk for mortgage lenders, so they’re often priced higher than new home purchases and rate-term refinances.
How to get the lowest mortgage or refinance rate
Since rates can vary, always shop around when buying a house or refinancing a mortgage.
Comparison shopping can potentially save thousands, even tens of thousands of dollars over the life of your loan.
Here are a few tips to keep in mind:
1. Get multiple quotes
Many borrowers make the mistake of accepting the first mortgage or refinance offer they receive.
Some simply go with the bank they use for checking and savings since that can seem easiest.
However, your bank might not offer the best mortgage deal for you. And if you’re refinancing, your financial situation may have changed enough that your current lender is no longer your best bet.
So get multiple quotes from at least three different lenders to find the right one for you.
2. Compare Loan Estimates
When shopping for a mortgage or refinance, lenders will provide a Loan Estimate that breaks down important costs associated with the loan.
You’ll want to read these Loan Estimates carefully and compare costs and fees line-by-line, including:
Interest rate
Annual percentage rate (APR)
Monthly mortgage payment
Loan origination fees
Rate lock fees
Closing costs
Remember, the lowest interest rate isn’t always the best deal.
Annual percentage rate (APR) can help you compare the ‘real’ cost of two loans. It estimates your total yearly cost including interest and fees.
Also pay close attention to your closing costs.
Some lenders may bring their rates down by charging more upfront via discount points. These can add thousands to your out-of-pocket costs.
3. Negotiate your mortgage rate
You can also negotiate your mortgage rate to get a better deal.
Let’s say you get loan estimates from two lenders. Lender A offers the better rate, but you prefer your loan terms from Lender B. Talk to Lender B and see if they can beat the former’s pricing.
You might be surprised to find that a lender is willing to give you a lower interest rate in order to keep your business.
And if they’re not, keep shopping — there’s a good chance someone will.
Fixed-rate mortgage vs. adjustable-rate mortgage: Which is right for you?
Mortgage borrowers can choose between a fixed-rate mortgage and an adjustable-rate mortgage (ARM).
Fixed-rate mortgages (FRMs) have interest rates that never change, unless you decide to refinance. This results in predictable monthly payments and stability over the life of your loan.
Adjustable-rate loans have a low interest rate that’s fixed for a set number of years (typically five or seven). After the initial fixed-rate period, the interest rate adjusts every year based on market conditions.
With each rate adjustment, a borrower’s mortgage rate can either increase, decrease, or stay the same. These loans are unpredictable since monthly payments can change each year.
Adjustable-rate mortgages are fitting for borrowers who expect to move before their first rate adjustment, or who can afford a higher future payment.
In most other cases, a fixed-rate mortgage is typically the safer and better choice.
Remember, if rates drop sharply, you are free to refinance and lock in a lower rate and payment later on.
How your credit score affects your mortgage rate
You don’t need a high credit score to qualify for a home purchase or refinance, but your credit score will affect your rate.
This is because credit history determines risk level.
Historically speaking, borrowers with higher credit scores are less likely to default on their mortgages, so they qualify for lower rates.
For the best rate, aim for a credit score of 720 or higher.
Mortgage programs that don’t require a high score include:
Conventional home loans — minimum 620 credit score
FHA loans — minimum 500 credit score (with a 10% down payment) or 580 (with a 3.5% down payment)
VA loans — no minimum credit score, but 620 is common
USDA loans — minimum 640 credit score
Ideally, you want to check your credit report and score at least 6 months before applying for a mortgage. This gives you time to sort out any errors and make sure your score is as high as possible.
If you’re ready to apply now, it’s still worth checking so you have a good idea of what loan programs you might qualify for and how your score will affect your rate.
You can get your credit report from AnnualCreditReport.com and your score from MyFico.com.
How big of a down payment do I need?
Nowadays, mortgage programs don’t require the conventional 20 percent down.
In fact, first-time home buyers put only 6 percent down on average.
Down payment minimums vary depending on the loan program. For example:
Conventional home loans require a down payment between 3% and 5%
FHA loans require 3.5% down
VA and USDA loans allow zero down payment
Jumbo loans typically require at least 5% to 10% down
Keep in mind, a higher down payment reduces your risk as a borrower and helps you negotiate a better mortgage rate.
If you are able to make a 20 percent down payment, you can avoid paying for mortgage insurance.
This is an added cost paid by the borrower, which protects their lender in case of default or foreclosure.
But a big down payment is not required.
For many people, it makes sense to make a smaller down payment in order to buy a house sooner and start building home equity.
Choosing the right type of home loan
No two mortgage loans are alike, so it’s important to know your options and choose the right type of mortgage.
The five main types of mortgages include:
Fixed-rate mortgage (FRM)
Your interest rate remains the same over the life of the loan. This is a good option for borrowers who expect to live in their homes long-term.
The most popular loan option is the 30-year mortgage, but 15- and 20-year terms are also commonly available.
Adjustable-rate mortgage (ARM)
Adjustable-rate loans have a fixed interest rate for the first few years. Then, your mortgage rate resets every year.
Your rate and payment can rise or fall annually depending on how the broader interest rate trends.
ARMs are ideal for borrowers who expect to move prior to their first rate adjustment (usually in 5 or 7 years).
For those who plan to stay in their home long-term, a fixed-rate mortgage is typically recommended.
Jumbo mortgage
A jumbo loan is a mortgage that exceeds the conforming loan limit set by Fannie Mae and Freddie Mac.
In 2023, the conforming loan limit is $726,200 in most areas.
Jumbo loans are perfect for borrowers who need a larger loan to purchase a high-priced property, especially in big cities with high real estate values.
FHA mortgage
A government loan backed by the Federal Housing Administration for low- to moderate-income borrowers. FHA loans feature low credit score and down payment requirements.
VA mortgage
A government loan backed by the Department of Veterans Affairs. To be eligible, you must be active-duty military, a veteran, a Reservist or National Guard service member, or an eligible spouse.
VA loans allow no down payment and have exceptionally low mortgage rates.
USDA mortgage
USDA loans are a government program backed by the U.S. Department of Agriculture. They offer a no-down-payment solution for borrowers who purchase real estate in an eligible rural area. To qualify, your income must be at or below the local median.
Bank statement loan
Borrowers can qualify for a mortgage without tax returns, using their personal or business bank account. This is an option for self-employed or seasonally-employed borrowers.
Portfolio/Non-QM loan
These are mortgages that lenders don’t sell on the secondary mortgage market. This gives lenders the flexibility to set their own guidelines.
Non-QM loans may have lower credit score requirements, or offer low-down-payment options without mortgage insurance.
Choosing the right mortgage lender
The lender or loan program that’s right for one person might not be right for another.
Explore your options and then pick a loan based on your credit score, down payment, and financial goals, as well as local home prices.
Whether you’re getting a mortgage for a home purchase or a refinance, always shop around and compare rates and terms.
Typically, it only takes a few hours to get quotes from multiple lenders — and it could save you thousands in the long run.
Current mortgage rates methodology
We receive current mortgage rates each day from a network of mortgage lenders that offer home purchase and refinance loans. Mortgage rates shown here are based on sample borrower profiles that vary by loan type. See our full loan assumptions here.
The chart below shows the number of active listings since 1982:
The people who told you demographics in the U.S. are awful and that we resemble Japan were drinking some powerful saki. For years, people said slowing U.S. population growth means we will become Japan, but I’ve been focused on demographics and how that will affect housing from 2020-2024. Concerning the housing economics demand curve, it’s always about the net people living and working.
In reality, housing economic modeling takes a lot of work, and some people instead choose marketing gimmicks to make a name for themselves. It’s very sexy to talk gloom and doom about the housing market, but sometimes that doesn’t end well. I have been highly skeptical of stock traders when they talk about housing economics.
And here is a case in point: New home sales came in Tuesday at a big beat of estimates, but the real story is one about supply and demand.
New home sales
From Census: New Home Sales Sales of new single‐family houses in March 2023 were at a seasonally adjusted annual rate of 683,000, according to estimates released jointly today by the U.S. Census Bureau and the Department of Housing and Urban Development. This is 9.6 percent (±15.2 percent)* above the revised February rate of 623,000, but is 3.4 percent (±12.7 percent)* below the March 2022 estimate of 707,000.
As we can see in the chart below, it’s not like the new home sales market is booming at all; we aren’t anywhere near the top of sales in 2005 or in 2020. However, what has happened is that the housing data has stabilized.
When did this all happen? The forward-looking housing data started to improve from Nov. 9, 2022, with purchase application data, and almost everyone ignored it. The thing is, builders have time to work off their backlog of homes because they’re efficient sellers — they can cut prices, lower mortgage rates and do what they need to do to sell their product, which is a commodity to them. They don’t have the same issues as an existing homeowner because they’re not living in the home they’re selling.
New Home Monthly Supply
For Sale Inventory and Months’ Supply, The seasonally‐adjusted estimate of new houses for sale at the end of March was 432,000. This represents a supply of 7.6 months at the current sales rate.
The builders are progressing here; their confidence improves as the monthly supply falls. Context is always crucial with all housing data, and we had a waterfall dive in many housing data lines and bounced from that deep dive.
However, the housing market is still not good enough to start issuing new housing permits. That’s when you will know housing is out of the recession, and when the builders can start building again. It’s that simple.
The data below is a significant improvement for builders, as housing completions are still rising while their monthly supply is falling.
I have a straightforward model for when the homebuilders will start issuing new permits with some kick and duration. My rule of thumb for anticipating builder behavior is based on the three-month supply average. This has nothing to do with the existing home sales market — this monthly supply data only applies to the new home sales market, and the current 7.6 months are too high for the builders to issue new permits with any natural steam.
When supply is 4.3 months and below, this is an excellent market for builders.
When supply is 4.4 to 6.4 months, this is an OK builder market. They will build as long as new home sales are growing.
When the supply is 6.5 months and above, the builders will pull back on construction.
So, as we can see below, the homebuilders are no longer dealing with spiking supply data but a slow-moving downtrend that still needs much work. However, there is a lot more to this the active listing story than meets the eye.
The 7.6 months of supply is broken down this way.
267,000 homes are under construction, still. 4.7 months of supply
94,000 homes still need to start construction. 1.7 months of supply
71,000 homes are completed for sale. 1.2 months of supply
No, I am not kidding you; the mass supply increase some people have been talking about is only 71,000. We are far from the peak of supply during the housing bubble crash nears, which was closer to 200,000.
All in all, Tuesday’s new home sales report is consistent with what we have seen in the new home sales data for many months now. The builders are simply taking advantage of the low total housing inventory by doing whatever it takes to move their product, and that is being helped by paying down the mortgage rate for their buyers. Imagine what the total housing market would look like if mortgage rates were at 5% today.
As part of the Housing Market Tracker, we look at seasonal inventory weekly, and hopefully, the seasonal inventory bottom has already happened, as I talk about here.
Regarding Wall Street’s take on the surprise in the new home sales sector, was it really a surprise? Someone had to be buying the builder stocks, right? The reality is that home sales crashed last year and that didn’t create the inventory that some housing experts were looking for last year and this year. This is where understanding how credit channels impact housing inventory would have helped.
Hopefully, my work during my time as a housing analyst for HousingWire has brought some light into this discussion, and this will be more in focus when the next recession hits. However, until then, the Housing Market Tracker data got ahead of this stabilization in new home sales data, and that shouldn’t have surprised Wall Street.
Christine just sent me a National Public Radio story about the frugal artists of New York City. Columbia University recently released a study of 213 visual artists over the age of 61. Their average income? $30,000 a year. According to the NPR story:
Most of them said they were satisfied with their lives. However, many reported that they also have had to make daily economic compromises. They don’t eat out, buy clothes at flea markets and rarely travel.
Many of these artists manage to make it in New York through frugal living. All they seem to need is some food, a roof overhead and the time and opportunity to practice their art.
This is a nice story, with some lovely bits in the interviews with individual artists. More than that, it was just the shot in the arm I needed.
Kris and I enjoy our lives. We have a lot, and we’re grateful. But our focus in the past year has been on frugality, on refining the art of buying only that which we will use or bring us pleasure.
Sometimes, though, I lose my focus. It’s been a struggle for me lately to remember that frugality is a good thing, that thrift is a responsible choice. I haven’t turned into a spendthrift or anything — I’ve just been paying too much attention to those who ask, “What is the point of amassing a fortune while living below your means? Why make sacrifices now for an uncertain future?”
When I hear stories like the one about the frugal artists in New York City, I’m reminded that frugality is a virtue, that it can allow people to pursue their dreams. I’ve always wanted to be a writer. Now I am. I never thought I’d be writing about personal finance (I thought I’d write science fiction novels), but to be honest: writing is writing. I love what I do. And one of the reasons I’m able to do it is because I’ve learned to live below my means.
There’s real value in boosting your income — I don’t deny that. But frugality is an important part of personal finance, too. And for each of us it’s different. I might be able to cut back on clothing and transportation, but I’ll probably always spend a lot on food. On the other hand, food may be a perfect place for you to cut costs, but maybe you’re not willing to compromise on your wardrobe.
Frugality and thrift allow us to emphasize those things that are most important in our lives. When we restrict our spending on the unimportant, we’re able to indulge ourselves on the things that matter most.
And what about sacrificing now when the future is so uncertain? I think this is a fallacy on a couple of levels. First of all, spending is not happiness. If it is, there’s something wrong. Second, most of us are likely to live a long time. Which would you rather do?
Prepare for a long life by saving and investing, but then die tomorrow.
Spend money you don’t have now, and then be unable to afford what you need when you’re older.
I’d prefer the former. Kris and I make sacrifices, but we’re not miserable. In fact, frugal folks are some of the happiest people I know. They spend money on the things that are important, and they save for the future.
Sure, you’re probably not using paper checks for most things. But are you returning payments to medical providers and insurance companies in the mail? Paying by check for the random parking ticket or your child’s piano lessons? Now is a good time to stop: Check fraud tied to mail theft is up nationwide, according to a February alert from the Financial Crimes Enforcement Network. And letter carrier robberies are also on the rise.
This is partially due to the effects of the pandemic, when thieves targeted government relief checks in the mail. “Fraudsters just went back to tried-and-true potential attack factors that seemed to be working,” says Michael Bruemmer, head of global data breach resolution for Experian.
The U.S. Postal Service is vulnerable, and thieves who can access your checks can change the amount and ferret those funds right out of your bank account. And then it can take weeks to get the funds back.
“It’s absolutely a life disruption event when you mail a check and it’s been intercepted,” says Mary Ann Miller, fraud and cybercrime executive advisor and vice president of client experience at consumer identity company Prove. “That can take all the money out of your account at once.”
Here are some steps to keep yourself safe from check fraud — and what to do if you’re a victim.
Use payment alternatives
Look for ways to pay your bills that don’t require using the mail. Check your statement for online payment instructions, for example. “We are beginning to see more online options,” Miller says. “In fact, some medical providers, like One Medical, have a very nice option to pay from a mobile app along with all of your medical information. I find it super helpful and modern.”
If you’re paying individuals, ask if they’ll accept electronic payment through PayPal, Venmo, Zelle or another cash app. “There’s really no need to be writing checks today,” Bruemmer says.
Working with a vendor that doesn’t offer an easy way to pay online? Call and ask if you can pay over the phone. “Paying by phone via the IVR — interactive voice response — or a live customer service representative is definitely a preferred option,” Miller says. “Just make sure you are calling the correct number for the utility or medical provider.”
And in general, experts recommend using credit cards to transact, whenever possible. “You have a lot more protection globally with a credit card, if you’re traveling internationally, or if you’re buying things online,” says Derek Miser, an investment advisor and CEO at Miser Wealth Partners in Knoxville, Tennessee.
Send checks safely
If you must send a check, take steps to lower the chances of financial mayhem. If it’s a big payment, consider using a shipper like UPS or FedEx. “They do accept checks and provide a tracking number,” Miller says.
If you’re using the U.S. Postal Service, send your payment in a security envelope and take it directly to the post office, bypassing mailboxes and mail carriers. You can also write your checks using a black gel ink pen to make it harder for criminals to wash your checks (the ink soaks into the paper).
If you’re sending a check to someone, ask them to let you know once they receive it. That way, if too much time has passed and the recipient hasn’t gotten the check, you can place a stop payment, Miller suggests.
One last safeguard: Keep enough funds in your checking account to pay the bills, but put the rest elsewhere, such as a linked savings account. The smaller your checking account balance, the less money that can be accessed by someone forging a check against your account.
Take action if a check goes awry
If you suspect a check has fallen into the wrong hands, call your bank right away. Then file a police report and contact the person or business that was meant to receive the check. If you were making a payment, you may have to make arrangements to make another payment to prevent late fees or interest.
Be forewarned: Processes for returning fraudulently lost money to bank accounts vary by institution, and some timelines are lengthy. “The customer generally is made whole, but that could be months,” Miller says.
In the meantime, consider putting a fraud alert on your credit reports in case someone tries to open credit in your name, and go over your bank statements and credit reports with an eagle eye. Note that you’re eligible for a free credit report from each of the three major reporting agencies each year at AnnualCreditReport.com.
You can also set up check monitoring at some banks, from which you’ll receive text messages or alerts when transactions over a certain amount are cashed.
“I would say now that just about every bank has some sort of monitoring,” Bruemmer says. “Take advantage of that free alerting that comes from being a member of a financial institution.”
This article was written by NerdWallet and was originally published by The Associated Press.
inflation cooled in June for the twelfth straight month despite persistent rent hikes and rising gas prices.
Even with interest rates on mortgage loans hovering around 7%, the market is still moving quickly, according to Market Watch.
“There appears to be more demand than available supply for homes, especially in the real-estate market, which is keeping home prices high,” Mike Simonsen, founder and president of real-estate analytics firm Altos Research, told MarketWatch.
The Baby Boomer generation is also largely ‘aging in place,’ according to a recent report by investment company US Money Reserve. The report said that 38% of American homeowners age 65+ have lived in their homes for more than 30 years, and another 39% have lived in their current homes for more than a decade.
Own a piece of Indianapolis history with this Victorian townhouse on Delaware St. in the Old Northside. Built in 1872, this home has been renovated from top to bottom and seamlessly combines historic charm with updated style.
The coffered ceilings, hardwood floors and turret with curved windows remind you of the home’s history and attention to detail. Features like the marble countertops, double ovens and built-in wine fridge mean you definitely aren’t living in the 1800s.
These easily avoidable mistakes turn off buyers. Don’t do them.
Fort Wayne
This Fort Wayne condo has some incredible views. Floor-to-ceiling windows throughout the condo show off the Allen County Courthouse and the heart of downtown.
Listed for $549,900, it includes more than 1,400 sq ft of living space with a gourmet kitchen, quartz countertops, with an ultra-modern backsplash and lighting.
See $500K homes for sale around the state, including historic 1830 house
West Lafayette
For anyone thinking about making a move closer to Purdue, check out this Dutch colonial in West Lafayette that the listing says, “feels like the perfect setting for a Hallmark holiday movie.”
Moving bonus:Why some Indiana towns are willing to pay workers to relocate
Muncie
For those looking for more land for their money, this $580,000 home in Muncie sits on more than ten acres.
This modern farmhouse was built in 2002 and is perfect for country living in a spacious home with tons of amenities.
Take in the farm views while working in the updated kitchen with custom countertops and a farm sink.
The 4 bedroom 3.5 bath with more than 3,200 sq ft inside also has an above-ground pool outside and a large deck that is perfect for entertaining.
Evansville
This $575,000 home on Volkman Road in Evansville comes with more than enough room to spread out.
A 700 sq ft guest house and a large, insulated pole barn with a full bar and theater area come along with the five-bed, 2.5 bathroom home.
With more than 3,700 sq ft of total space, the 1954 brick home features a newly laid stone fireplace, updated kitchen and large living room.
April report:Buying or selling a home in Indiana? Here’s what a $500K house looks like around the state
Buying new furniture can be an exciting way to personalize and update your home, whether your taste runs towards a sleek, modern look, a funky boho vibe, or anything in between. But furniture can be expensive, so you’ll likely want to shop at the right time to get the best possible deal.
When precisely that is will typically vary based on what you are hunting for. Indoor furniture may be on sale in the winter and summer, but outdoor pieces may be marked down at the end of summer and in the fall.
To help you save a bundle on your new furnishings, no matter what you may be looking for, read on for smart intel and advice.
When Is the Best Time to Buy Furniture?
The best time of year to buy furniture depends on which kind of furniture you’re talking about. Here are some rules of thumb to keep in mind as you redesign your living space.
Indoor Furniture
Like many other manufactured goods, sales on indoor furniture are dependent on the release of new pieces: when a showroom needs to make room for next season’s stock, they put the older stuff on sale. New furniture designs tend to be released in spring and fall, which means the best sales happen at the end of the winter and summer seasons.
So for indoor furnishings like beds and couches, shopping at your local furniture stores in January/February and July/August and paying special attention to any seasonal or holiday sales may offer decent savings on the cost.
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Outdoor Furniture
Outdoor furniture, on the other hand, tends to be released in the late winter and spring between February and April. Shoppers might consider the earlier part of that range the best time of year to buy furniture for outdoor spaces in plenty of time for the long, sunny days of summer.
However, furniture shops also generally want to have that stock off their floor by August, which means there are usually some great outdoor furniture sales to shop over the summer and particularly towards early fall.
Custom Furniture
Having a piece (or three) hand-built to your specifications can bring your interior design dreams to life. However, on-demand, custom-built furniture typically costs more and is less likely to go on sale the way ready-made furniture does.
That said, buying custom furniture can be better for your budget in the long run if it means you won’t be itching to change your furniture again in a couple of years — or if it means your furnishings are of higher quality and, hopefully, a longer life. Plus, buying custom designs from a small business, or even an individual crafter, can feel more rewarding than purchasing something from a big-box store.
Recommended: Budgeting for Basic Living Expenses
Furniture Shopping on Holiday Weekends
As is true of many major purchases, holiday weekends and annual sales can offer excellent opportunities to buy furniture on the (relatively) cheap. Some holidays that routinely bring furniture sales include:
• Presidents Day
• Memorial Day
• Fourth of July
• Labor Day
• Black Friday and other winter holiday sales events.
Many retailers offer regular sales in addition to these events, so it’s always a good idea to watch for promotions. Signing up for the store’s email newsletter can help keep you apprised of their ongoing sales events, and many dealers also offer clearance stock year-round that could be worth perusing.
Recommended: 25+ Tips for Buying Furniture on a Budget
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General Furniture-Buying Tips
No matter what time of year you shop for your furnishings, the following tips can help you find a good deal and get the most for the money you do spend.
You can also benefit from them if you’re budgeting to buy a house and putting in offers; you want to get the best possible price if you’ll be filling a home with new furniture.
Being Patient
Furniture — especially furniture you want to keep around for a decade or longer — is a big purchase. It’s worth waiting to find the right piece rather than dropping a bunch of money on one that’s only okay.
If you’re furnishing your new home for the first time and need something fast, consider visiting a local thrift shop or surfing Craigslist. You might be able to find an inexpensive, pre-owned piece that’s only temporary, but still workable — and won’t eat too much into your budget.
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Shopping Around
With so many design aesthetics and price points to choose from, furniture shopping is not a time for brand loyalty. You likely shop around for the best deals on groceries or when looking to switch bank accounts, so apply the same principle here. Shopping around at different dealers can help you find the best deal for your needs, but also give you more ideas and inspiration when it comes to creating a cohesive look for your home.
Recommended: Passive Income Ideas to Build Wealth
Consider Shopping Online
Online shopping for furniture can open a whole new world of color and design options. Some discount furniture retailers don’t offer physical storefronts, which can make shopping a little tricky. Choosing certain pieces of furniture, like couches and armchairs, for example, may be easier if you try them before you buy them.
Many online furniture retailers do offer return policies, which can help make your purchase less stressful, knowing that if it doesn’t work out, you’re not stuck with the product. And at online stores that do have brick-and-mortar locations, you could visit in person, try out a certain model, and then order online later, which may give you a better opportunity to compare the pieces you’re considering side-by-side.
Asking About the Warranty
Since furniture does tend to be a major expense, you want to make sure it’s built to last and has some guarantee to go with that. Many furniture sellers do offer warranties (just as some home warranties exist), and the fine print may also specify what the return policy is. In short, it’s worth getting familiar with.
💡 Quick Tip: When you feel the urge to buy something that isn’t in your budget, try the 30-day rule. Make a note of the item in your calendar for 30 days into the future. When the date rolls around, there’s a good chance the “gotta have it” feeling will have subsided.
The Takeaway
Shopping for furniture during certain times of the year can help you save money on a potentially expensive project like furnishing your home. When budgeting to buy a house, furnishings are just one of many things to save for, so it’s a goal that might take a backseat to expenses that are essential to homeownership, like the down payment and monthly mortgage, among others.
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Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
[Note from editor: The “Mastermind Showcase” highlights companies and news from members of the GEM. Today’s showcase: Flyhomes.]
Flyhomes is a tech-enabled real estate brokerage that boosts the financing power for its clients with products such as Cash Offers and Guaranteed Offers, as well as Trade Up. The company operates in Greater Seattle, Portland, San Francisco Bay, Southern California, and Boston areas, its W2 business model enables greater control over the consumer experience and more strategic flexibility compared to traditional agents.
Founded in 2015, the company has since raised $160 million, in 4 different funding rounds.
Represented in the GEM: Tushar Garg & Steve Lane
Why I wake up excited in the morning:
I am thrilled I get to spend every day helping people with one of the most significant purchases they’ll ever make. We hear over and over that customers find their experience with us to be completely different from any they’ve had — and that they can’t imagine buying a home any other way. I can’t imagine a better job!
What we like: As one of the best capitalized companies, Flyhomes is positioned well to emerge from the ashes of cutthroat competition with a first mover advantage and its steadfast devotion to the consumer. Not to mention, they have a cool brand name that originated as a lifestyle brokerage for millennial travelers.