A new study released by FreedomWorks found that various programs proposed or enacted to address the ongoing mortgage crisis don’t benefit homeowners evenly.
The group noted that many of the programs reward those who made the riskiest decisions while hurting those who were more conservative and bought only what they could afford.
For example, the American Securitization Forum’s Framework for Loan Modification plan, which freezes the teaser rate on subprime ARMs and refinances subprime borrowers into fixed loans, leaves those borrowers in a better position than those who originally chose fixed-rate loans, the study argued.
The idea here is that many of these borrowers made minimum payments on option-arms and other adjustable-rate mortgages that equated to lower monthly mortgage payments than those made by fixed-rate borrowers, allowing them to take out larger loans in the process and subsequently qualify for aid when they failed to make the higher reset payments.
The paper also cites a variance in state foreclosure rates driven by “exogenous economic forces,” and not the loans or borrowers themselves.
It found that that prime loans are defaulting at the highest rate where subprime defaults are the worst, noting that aid programs exclude good borrowers “unlucky enough to live in the states that experienced the worst of the current economic downturn.”
“Current programs and proposals reward borrowers who took out risky subprime mortgages and who live in states where the economy has held up,” author Todd Sinai wrote. “They do nothing for borrowers who chose more prudent financing and/or those who have entered default.”
In relation to that, Sinai believes taxpayers in all 50 states will fund federally mandated programs that only benefit homeowners in a few states such as California, Florida, New York, and Texas.
“The exposure of subprime mortgage debt is not evenly distributed across the United States. Rather, it is concentrated in a handful of states,” Sinai wrote.
He added that the four aforementioned states hold 50 percent of the “outstanding stock of subprime mortgages,” with 25 percent held in California alone.
The study also took a crack at the impending conforming loan limit increase, claiming that it will only help households with annual incomes between $129,000 and $180,000 based on sheer loan size, doing little to help median and low income families.
“A truly equitable policy of homeowner assistance would not distinguish among borrowers based on a borrower’s choice of financing, and it would not interfere with preexisting mortgage contracts.”
Read the entire study, written by Todd Sinai, a real estate professor at the Wharton School at the University of Pennsylvania.
San Antonio is the second-largest city in Texas by population and the seventh-largest city in the United States. The city has been a popular living option because of its abundant activities, rich history, green spaces and trails and affordability. If you’re planning on moving into the Military city, here are we found the best apartments in San Antonio for you.
Photo source: Tara Apartments / Rent.
This newly-renovated Alamo Heights community contains one- to three-bedroom units starting in the low $800s. Apartments are sleek and modern, featuring quartz countertops and stainless-steel appliances.
Residents enjoy a plethora of community amenities, including basketball and tennis courts, a children’s playground, a swimming pool and on-site laundry facilities. These amenities make it one of best apartments in San Antonio.
Photo source: Pure View at TPC / Rent.
An excellent location and modern style collide at Pure View at TPC. In addition to being minutes from the famous JW Marriott San Antonio Hill Country Resort & Spa, Pure View at TPC offers luxury amenities such as in-unit garden tubs and a resort-style on-site pool.
Residents can enjoy a tanning area, a Starbucks Wi-Fi lounge, game rooms and a fitness center. If you’re concerned about security, you’ll be relieved to know that this complex is also a limited-access gated community.
Photo source: Alamo Park / Rent.
With its convenient proximity to the lively Alamo Heights area of the city, Alamo Park offers a stellar location with the living space you need to live comfortably.
At this apartment, you’ll also find two swimming pools, a dog park, a sand volleyball court and pavilion and barbecue picnic areas for when you want to enjoy the many days of San Antonio sunshine.
Photo source: The Valencia on Four 10 / Rent.
In addition to its stellar location near Loop 410 and Lackland Air Force Base, Valencia on Four 10 provides everything you could need on-site, including a spa, fitness center, hot tub, two swimming pools, tennis court and laundry facilities.
The units range from a 722-square-foot one-bedroom to 1,454-square-foot two-bedroom apartments, so whichever option you choose, you’ll have plenty of space to relax.
Photo source: Vineyard Springs / Rent.
Vineyard Springs offers resident amenities such as valet trash, poolside Wi-Fi, a theatre and putting green, just to mention a few. If you find your wardrobe overflowing these days, the Vineyard also boasts oversized closets.
Even with these amenities, rent prices are very affordable, starting in the low $800s, making it an excellent value.
Photo source: Villa de Valencia / Rent.
Villa de Valencia is conveniently off Interstate 35, which can take you anywhere in the city. This is a bonus and why it makes our best apartments in San Antonio list.
In addition to the on-site children’s playscape, the community is pet-friendly and offers some paid utilities included in the rent total. The community is also currently under renovations, so future residents can look forward to newly-upgraded units.
Photo source: Apartments at Westover Hills / Rent.
With rents starting at $712 a month, the Apartments at Westover Hills offer excellent amenities at a great value. This pet-friendly community boasts a jogging trail, pet park, fitness center and an outdoor cooking area.
Lastly, units range from one to three bedrooms, so there are plenty of options depending on the amount of living space you need.
Photo source: The Place at Houston Street Townhomes / Rent.
The Place at Houston Street is a townhome community with five different floor plans and a long list of community amenities. The community is pet-friendly and close to public parks, giving you plenty to do in the area with your furry friends. There is a playscape for the kids, full-size garages for your vehicle and guest parking for your visitors.
If you enjoy apartment living but crave a little more space, this is a great option.
Photo source: Broad Viewe / Rent.
Starting in the mid-$600s, Broad Viewe is a pet-friendly community featuring in-unit amenities such as built-in bookshelves and butcher-block countertops. Within this community, you’ll also find newly renovated laundry facilities, an inline skating track and a large playground for the kids.
When you’re ready to soak up some sunshine, enjoy one of the two pools or barbecue at one of the picnic areas. The amenities combined with the modest rent prices make it a truly excellent value.
Photo source: Apartments at the Medical Center / Rent.
If you’re looking for an apartment in the heart of the Medical Center, look no further.
The Apartments at the Medical Center range from one- to three-bedroom units with amenities such as granite countertops, a resort-style pool, a clubhouse and tennis courts. Residents also enjoy gated access in this pet-friendly community.
Photo source: Costa Dorada / Rent.
Relax in the hot tub or venture out to the clubhouse as a resident at Costa Dorada. The community is on SE Military Drive, a major roadway close to shopping, food and the historic San Antonio Missions Park.
Plus, the community also features limited-access gates, providing extra security for residents.
Photo source: Stone Oak / Rent.
Luckily, the Stone Oak area is known for its abundant shopping and new development, and the location of the Apartments at Stone Oak allows you to stay right in the middle of all of the action. This luxury complex offers in-unit garden tubs, oversized closets and vaulted ceilings.
Residents can also enjoy on-site tennis courts, a recreation room, a fitness center and a media center, too.
Photo source: Apartments at University Heights / Rent.
Located minutes from Six Flags Fiesta Texas, the Apartments at University Heights are in an excellent location for theme-park enthusiasts.
Even if you don’t feel like venturing out, the community offers resident amenities such as basketball courts, a fitness center, a playground and a swimming pool. In addition to the on-site offerings, the units also feature garden tubs, oversized closets and hardwood floors.
Photo source: The Place at Castle Hills / Rent.
If high ceilings are on your wish list, the Place at Castle Hills features 9-foot ceilings and crown molding. The community offers a greenbelt and walking trail in conjunction with a swimming pool, fitness center and business center for resident use.
Additionally, it’s also close to I-10 and I-410, making the daily commute easier.
Photo source: Ventura Ridge / Rent.
Work-from-home employees will love Ventura Ridge, which features AT&T fiber internet. If you find yourself getting stir crazy during the workday, Ventura Ridge also offers an expansive outdoor area with amenities such as a resort-style pool, a fitness center and a clubhouse with multi-screen televisions for residents to enjoy. All in all, that’s a deal when working remote these days.
In fact, Tthe location provides easy access to I-10 and Loop 1604, so even commuters will find their niche in this modern community. Rents start at a little over $1,000, making luxury affordable.
Photo source: Oak Valley Apartments / Rent.
If you’re looking for a pet-friendly affordable housing option, Oak Valley Apartment Homes are income-restricted units close to I-35.
There is no shortage of amenities. This gated community offers a fitness center, a swimming pool, a business center, a community clubhouse, on-site laundry facilities and a children’s playground.
Photo source: Gateway Residents / Rent.
The Gateway Residences at Port San Antonio is a townhome community with unit options ranging from two to four bedrooms. The community displays large greenspace areas, which pair nicely with pet-friendly policies.
Located just minutes from the hustle and bustle of downtown San Antonio, the location of this community is excellent for those wanting to explore the city with easy access to the amenities that downtown has to offer.
Photo source: Alamo Heights / Rent.
Affordable luxury starts at $833 a month at the Apartments at Alamo Heights. This gated community’s amenities include a hot tub, running and biking trails, a pet park and a fitness center.
Not to mention, the location of this community puts you in the middle of the desirable Alamo Heights neighborhood, which is close to downtown and landmarks like the San Antonio Zoo.
Photo source: The Meadows at Bentley Drive / Rent.
If you’re looking for something on the east side of San Antonio, The Meadows at Bentley Drive is an excellent choice.
Located in the middle of east San Antonio near Randolph Air Force Base, the complex offers a barbecue pit, on-site laundry, a community clubhouse with a full kitchen and a children’s playground.
Photo source: Woodlake Trails / Rent.
The large three- and four-bedroom units at Woodlake Trails balance extra space with an excellent location.
Located 20 minutes from downtown San Antonio, this community offers spacious three- and four-bedroom homes surrounded by trees and greenspace. It also features a pool, a clubhouse and a children’s playscape.
Photo source: Woodlake Villas / Rent.
If cathedral ceilings appeal to you, take a look at Woodlake Villas. This East San Antonio community is newly renovated, with one- and two-bedroom units within driving distance of everything the city offers.
On the other hand, if you prefer to take the bus, the community is close to public transportation options too.
Photo source: The Enclave at Buckhorn Crossing / Rent.
Starting at just $720 a month, The Enclave at Buckhorn Crossing balances value with amenities. One- to three-bedroom units feature built-ins such as book shelving, computer desks and entertainment centers.
The community amenities are great, too. They include a heated spa, a sand volleyball court and a swimming pool with a wading area. This pet-friendly place even has a dog ranch.
Photo source: Village at Roosevelt Apartments / Rent.
In all honesty, if you find yourself wanting to live within a stone’s throw of Downtown, the Village at Roosevelt Apartments is ideal.
This gated community has a playground, a laundry facility and a business center available for residents. It also features bike storage, which is perfect if you intend to hit the various nearby bike trails.
Photo source: Military Village Apartments / Rent.
For those who commute to Lackland Air Force Base, the Military Village Apartments provide an excellent location. This pet-friendly community features upgraded fixtures, wood plank flooring and open kitchens with plenty of counter space.
This community is also close to shopping at Ingram Park Mall and has easy access to Loop 410.
Photo source: Culebra Creek Apartments / Rent.
Located on the west side of the city, Culebra Creek Apartment Homes offer units with one to four bedrooms featuring oversized closets and fully-appointed kitchens. Since this is a modern community, expect bike racks, a covered picnic pavilion, a children’s playground and a swimming pool.
Starting in the mid-$700s, it offers great value combined with spacious units.
The Best Apartments in San Antonio
Finding a great place to live in San Antonio doesn’t need to get complicated. If you’re ready to move, get started and find apartments for rent in San Antonio.
Furthermore, we looked at all available multifamily rental property inventory from January to June 2021 on Rent. to determine which properties with a San Antonio mailing address are most viewed by organic internet searches. The information included in this article is used for illustrative purposes only. The data contained herein does not constitute financial advice, availability, or a pricing guarantee for any apartment.
Advertiser Disclosure: Credit.com has partnered with CardRatings for our coverage of credit card products. Credit.com and CardRatings may receive a commission from card issuers.
Editorial Disclosure:Opinions, reviews, analyses & recommendations are the author’s alone, and have not been reviewed, endorsed or approved by any of these entities.
Snapshot: This card is great if you have a weaker credit score and are looking to access a potentially larger line of credit than most credit cards for bad credit offer. It’s a simple approval process, and with at least 6 months of responsible behavior you can be considered for a credit line increase. Did we mention the $0 annual fee?
Pros
Cons
No annual fee
Higher ongoing APR at reg_apr,reg_apr_type
Simple approval process
No rewards
Credit bureau reporting
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Potentially be approved a for a credit line increase in as little as 6 months
Like what you see? Learn how to apply for a Capital One Platinum credit card!
good credit cards for bad credit, we look at the following:
What’s the approval process like? Is a credit check required? Or a secured deposit?
Is there an annual fee?
How soon (if ever) can you increase your line of credit?
Many bad credit cards require an annual fee, a secured deposit, offer a very small line of credit, and may have a low cap on credit increases – if they offer them at all.
So, if you’re dealing with a low credit score that may make it difficult for you to qualify for a typical credit card, we recommend the Capital One Platinum Credit Card. This card has a simple application process (you can see if you’re approved very quickly) and Capital One may consider you for an increased line of credit in as little as 6 months.
Heads up: it does have a higher APR of reg_apr,reg_apr_type. Although it’s a comparable APR to other Capital One credit cards. So if you are considering this card, be sure to pay off your balance every month in order to avoid paying interest.
balance transfers, the Capital One Platinum credit card may not be the best option.
Is It Worth It?
Yes – if you have a lower credit score. If you’re looking for a solid credit card to help build your credit and allow you to access a larger line of credit, this card could be a great choice. With no annual fees, guaranteed credit bureau reporting and periodic credit reviews, this card can help improve your credit. It does come with a higher APR than some other credit card options, but it’s competitive with similar credit-building cards.
Like what you see? Learn more about how to apply for a Capital One Platinum Credit Card!
What are the Credit Limits for the Capital One Platinum Credit Card (Minimum and Maximum)?
Capital One bases credit limits on various factors, such as your credit history and income level (why we say variable). With this card, your credit limit can increase over time based on your payment history and other factors.
How Soon Can I Increase My Credit Limit After Being Approved for a Capital One Platinum Credit Card?
One of the main benefits of the Capital One Platinum credit card is that it offers automatic account reviews. Depending on your specific situation, you could be eligible for a credit limit increase in as little as 6 months.
How Good is a Capital One Platinum Credit Card for Building Credit?
The Capital One Platinum credit card is great (ideal!) for building credit. Special features, such as automatic credit reviews, credit bureau reporting and credit score monitoring, can all help you build your credit over time.
Ready to learn how to apply for a Capital One Platinum Credit Card?
Advertiser Disclosure: Credit.com has partnered with CardRatings for our coverage of credit card products. Credit.com and CardRatings may receive a commission from card issuers.
Penny stocks offer a unique glimpse into the lesser-seen side of the stock market. These stocks, tied to small and sometimes obscure companies, present a blend of opportunity and challenge, attracting investors with their potential for high returns despite inherent risks.
In the history of penny stocks, there are tales of spectacular gains and equally dramatic losses, reflecting their unpredictable nature. This market segment appeals to a certain type of investor: one who is not just willing to take on risk, but who is also keen on conducting thorough research to unearth potential opportunities in overlooked corners of the market.
This introduction to penny stock trading aims to strike a balance between the excitement of potentially lucrative investments and the sober reality of the risks involved. As we delve into this topic, we’ll explore both the allure and the cautionary aspects of trading in penny stocks, offering insights for those curious about this intriguing area of finance.
What are penny stocks?
Penny stocks are defined by the Securities and Exchange Commission (SEC) as shares issued by small or micro-cap companies for any amount below $5 per share.
They typically trade on the over-the-counter (OTC) or dark market. But you may find some on U.S. securities exchanges, foreign exchanges, and in rare cases, on major stock exchanges.
They are designed for investors who can withstand a high level of risk, as the low price point is a tell-tale sign of bigger issues going on within the company. It could be anything from cash-flow issues to impending bankruptcy or fraud. You could also be dealing with a startup with little to no track record or a company with management woes.
Profit Potential in Penny Stocks: What to Expect
Penny stocks, often trading below $5 a share, can seem like a gateway to quick profits in the stock market. They’re attractive because of their low entry cost and the dream of buying a stock for pennies today that might be worth dollars tomorrow. However, it’s crucial to temper expectations with reality.
While there are occasional stories of penny stocks skyrocketing in value, these are more the exception than the rule. The overall success rate for investors in penny stocks is generally lower than in more traditional stock investments, largely due to their volatility and the opaque nature of many companies represented in this segment.
Navigating the Risks: The Realities of Penny Stock Investments
When considering penny stocks, it’s important to understand the risks involved. These stocks are known for their low liquidity, which means it might be difficult to sell your shares at the optimal time.
Moreover, the penny stock market is often a playground for manipulative tactics like ‘pump and dump’ schemes. In such scenarios, stock prices are artificially inflated through misleading or overly optimistic statements, only to be sold off by insiders at a profit, leaving other investors with losses.
What’s more, the lack of comprehensive financial information about these small or micro-cap companies adds another layer of risk. With less regulatory oversight compared to larger, more established stocks, it’s harder for investors to make fully informed decisions.
Making Informed Decisions
If you’re considering diving into the world of penny stocks, it’s vital to do your homework. Thorough research and a well-thought-out strategy are key. Look for penny stock companies with solid fundamentals, transparent business models, and potential for growth.
Be wary of stocks that exhibit sudden price jumps without any underlying business changes. Remember, a disciplined and patient approach, along with a readiness to react to market changes, is essential in navigating the high-risk, high-reward world of penny stock trading.
How to Get Started with Penny Stocks
Step 1: Conduct Thorough Research
Before you jump into penny stocks, it’s essential to do your homework. Start by understanding what penny stocks are and how they differ from traditional stocks. Research the companies behind these stocks thoroughly.
Look into their financial health, business models, and market potential. Pay special attention to their balance sheets, earnings reports, and any news that could affect their stock prices. Remember, information is power in the world of investing, and this is especially true for penny stocks.
Step 2: Set Realistic Investment Goals
Determine what you want to achieve with penny stocks. Are you looking for quick profits, or are you more interested in long-term growth? Setting clear and realistic goals will help guide your investment decisions and keep your expectations in check. Be aware that while penny stocks offer the possibility of high returns, they also come with a high risk of loss.
Step 3: Choose the Right Trading Platform
Select a trading platform or broker that caters to penny stock investors. Look for platforms with low fees, as penny stocks are typically low-value investments and high transaction costs can eat into your profits.
Ensure the platform provides adequate tools and resources for researching penny stocks. Some platforms may have restrictions or higher fees for trading penny stocks, so it’s crucial to read the fine print before making your choice.
Step 4: Start Small and Diversify
When you’re ready to start trading, begin with a small investment to test the waters. Penny stocks are highly volatile, so it’s wise not to put all your eggs in one basket. Diversify your investments across different stocks and sectors to spread the risk. Remember, diversification is a key strategy in mitigating risk in any investment portfolio.
Step 5: Learn from Mistakes and Stay Updated
Even the most seasoned investors make mistakes, especially in the unpredictable world of penny stocks. Take note of any missteps and learn from them. Stay updated on market trends and news that could impact your investments. Continuous learning and adapting your strategy based on your experiences and market changes are crucial for success when investing in penny stocks.
Common Mistakes to Avoid With Penny Stocks
Falling for hype: One of the biggest traps with penny stocks is getting swayed by hype. Avoid making decisions based on promotional emails or hot tips without doing your own research.
Ignoring red flags: Don’t overlook red flags like inconsistent financials, frequent changes in company leadership, or lack of transparent information.
Overtrading: Resist the urge to trade too frequently. Overtrading can lead to impulsive decisions and increased transaction costs.
Neglecting exit strategy: Always have an exit strategy for each investment. Decide in advance at what point you will sell, whether to capture profits or cut losses.
How to Find Promising Penny Stocks: Effective Strategies
Locating promising penny stocks is a nuanced process. While some penny stocks are available on major stock exchanges like Nasdaq, most are traded over-the-counter (OTC). Understanding where and how to find these stocks is crucial for potential success in this high-risk, high-reward market.
Explore OTC Markets and Major Exchanges
Most penny stocks are traded on OTC markets such as the Over-the-Counter Bulletin Board (OTCBB) and Pink Sheets, where listing requirements are less stringent than on exchanges. However, some penny stocks are also listed on larger exchanges like Nasdaq, adhering to their stricter regulations and offering slightly more stability. Familiarizing yourself with both OTC and large exchanges broadens your scope for finding potential stock picks.
Leverage Financial Information Sources
To aid in your search, utilize financial information sources like Google Finance or Yahoo Finance. These platforms provide valuable data on OTC stocks, including price movements, volumes, and company news. They are excellent starting points for initial research and tracking stock performance.
Selecting the Right Broker for Penny Stock Trading
Choosing a broker that aligns with your goals is crucial. Consider factors like fee structures, trade surcharges, volume restrictions, and trading limitations. Broker fees, especially for low-value transactions like penny stocks, can significantly impact your profits. Ensure the broker you choose allows you to trade penny stocks, as not all do.
Assessing Broker Resources and Tools
In addition to fee structures, assess the resources and tools each broker offers. Some brokers provide specialized resources for penny stock traders, such as advanced screening tools, research reports, and educational content. These can be invaluable in helping you make informed decisions.
Tips for Choosing a Broker
Compare fee structures: Look for brokers with low fees and surcharges for buying penny stocks.
Check for volume restrictions: Ensure the broker doesn’t impose restrictive trading limits that could hinder your strategy.
Research broker reputation: Choose a broker with a good reputation for customer service and reliability.
Evaluate educational resources: Consider brokers that offer educational materials and resources specifically designed for penny stock traders.
Finding the Best Broker for Your Penny Stock Investments
When it comes to choosing the best broker for penny stocks, there isn’t a one-size-fits-all answer. The ideal broker varies based on individual trading styles, preferences, and goals. Here’s a comprehensive list of the best online brokers for stock trading of 2023 can be a great starting point.
It’s important to verify that the brokers you’re considering do indeed offer penny stock trading, as not all brokers provide this service. Make sure to choose a broker that aligns with your investment strategy and provides the necessary tools and resources for penny stock investors.
Risks and Considerations of Penny Stock Trading
Before you dive into the world of penny stocks, there are some risks you should be aware of.
Trade Volume and Fees
It’s no secret. The trading volume for penny stocks is relatively low because of their risky nature, so you may find it difficult to buy and sell at the most optimal times. You also want to pay attention to the fees that brokers sometimes tack on to penny stock trades.
If you find that they are substantially higher than what you’d pay to trade regular shares, move on to brokers that don’t employ this practice.
Exchanges
If the shares aren’t listed on a major exchange, like the NYSE or Nasdaq, proceed with caution as the regulations are little to non-existent. In turn, you have much more to lose, as there’s no way to gauge how the penny stock company will perform in the short or long term with little information to go on.
Return on investment
When trading stocks, there’s no guarantee that you’ll turn a profit. In fact, the odds definitely aren’t in your favor if the company the shares are tied to is in the midst of a financial storm or rough patch.
While this isn’t a definitive nail in the coffin, you have to think about the time between the purchase of shares and when the penny stock price appreciates and if it’s worth the wait. This could take months, if not years.
Penny Stock Scams
Be on the lookout for scam artists that promise to make you wealthy from trading penny stocks overnight. They do this by promoting a particular penny stock heavily or issuing warnings that a particular penny stock should be avoided at all costs. Either way, these deceptive marketing tactics can drive stock prices up or down in a jiffy and wreck your earning potential.
Strategies for Trading Penny Stocks Successfully
Setting clear goals and risk tolerance
Ensure that you clearly understand your investment goals and risk tolerance before you get started. This can help guide your decision-making and ensure that you are comfortable with the level of risk you are taking on.
Using stop loss orders and other risk management techniques
Stop loss orders and other risk management techniques can help to limit potential losses in penny stock trading. These techniques can help to protect your investment and keep you from making rash decisions in the face of market volatility.
Being patient and disciplined in decision-making
Successful penny stock investors are often disciplined and patient. They take the time to thoroughly research potential investments, avoid the temptation to chase after quick gains, and stick to a well-thought-out trading plan.
Bottom Line
Penny stock trading offers a unique blend of risks and rewards, appealing to those willing to navigate its volatile waters. It’s crucial to approach this market with thorough research, a clear strategy, and realistic expectations. Remember, while the potential for high returns exists, so does the risk of significant losses.
Your Next Steps
Educate yourself further: Continuously expand your knowledge about penny stocks. Resources like financial websites, investment books, and online courses can provide deeper insights.
Stay informed: Keep up with market trends and news. Regularly visit financial news platforms and consider subscribing to newsletters focused on penny stocks.
Connect with a community: Engage with online forums or local investment groups where you can exchange ideas and learn from experienced penny stock traders.
Trading penny stocks isn’t for everyone, but with the right approach, it can be a rewarding part of your investment portfolio. Always invest wisely, understand the risks involved, and never stop learning.
Frequently Asked Questions
How much money do you need to start trading penny stocks?
It depends on the broker you open an account with. Each broker has different minimum deposit requirements for opening an account. Most of them don’t have any requirements at all.
Are penny stocks hard to trade?
Penny stocks can be volatile and unpredictable. They are also subject to market manipulation. Most active traders who trade them are day traders, and only about 10% of them are actually profitable.
Why are penny stocks risky?
Penny stocks can be highly volatile and are typically subject to greater risks than larger, more established stocks. They may also be more susceptible to fraud and manipulation, which can lead to significant losses for investors.
Is Robinhood good for penny stocks?
You can trade penny stocks on Robinhood. However, the only penny stocks supported by Robinhood are stocks that trade on either the NASDAQ or NYSE. While most penny stocks are not listed on these major exchanges, exchange-listed penny stocks are typically viewed as the safer alternative to OTC stocks.
When considering colleges, admissions rates can seem like the biggest hurdle. But as acceptances roll in and you begin to look at tuition rates, you may see a huge difference between in-state and out-of-state options.
If you’re considering out-of-state schools, tuition can be much more expensive than it is for in-state students. In some cases, it may seem more on par with what you might have expected to pay for private schools.
Does that mean you should exclusively look within your state? That depends on your goals, finances, and what you want out of your college experience. Some people decide to go out of state for programs that aren’t offered in local institutions, some are drawn to a new adventure, and some the opportunity to move away from home.
Regardless of where your first choice college may be, understanding the financial implications of your decision can help you decide on financial aid packages and know what you’re getting into, finance — wise, before you make a final decision.
What Does Out-of-State Tuition Mean?
As you decide which colleges you’ll apply to, you may have public and private colleges on your list. Public colleges are colleges that are funded by a state and receive significant public funds, including taxpayer dollars, to function. Private colleges are not owned by the state and are privately held, with funding coming from tuition, research grants, endowment funds, and charitable donations.
Private colleges do not differentiate their tuition plans based on residency. Public colleges and universities, on the other hand, rely on tax dollars, so they do base their tuition plans on residency. That’s because residents are already “paying” for the university or college through their tax dollars. Out-of-state students, who are not paying local or state colleges, are given a higher price tag.
Whether you’re applying in-state or out-of-state, it’s important to remember that the “price tag” of college tuition is independent of any financial aid, scholarships, loans, or grants you might have available.
Recommended: Private vs. Public College: What to Know When Deciding
Lowering the Bills on Out-of-State Tuition
Out-of-state tuition can cause sticker shock — and may lead to sizable loans. According to Education Data, the average cost of tuition at a public out-of-state college or university is $26,382. In-state tuition averages around $9,212 for the same degree. This number is independent of additional costs, such as housing and books.
While the sticker shock is real, there may be some workarounds that open up your options without piling on unnecessary expenses.
Reciprocal Tuition and Tuition Exchanges
Some states, such as Wisconsin and Minnesota, offer what’s called reciprocal tuition — in-state tuition offered for residents of both states. There are also some tuition exchanges and discount programs.
For example, the New England Board of Higher Education offers a tuition break program that offers discounts to New England residents when they enroll in another New England college. This savings may be as much as $8,000. Certain rules and restrictions apply. For example, you may have to prove the degree you wish to receive is not offered within public universities in your state.
Speaking with your guidance counselor or your financial aid office may be helpful in determining whether these types of programs are available and eligible for you.
Becoming a Resident
“Residency” for in-state tuition isn’t as simple as moving into the dorms. Residency rules vary by state and university. In some cases, residency requires that individuals live in the state for at least twelve months, be financially independent (if your parents/guardians aren’t living in the same state), and have “intent”— i.e., there’s a reason why you’re living in-state beyond just attending school. In some cases, intent to remain in a state can include getting a driver’s license, filing taxes, or registering to vote in that state. States may have differing requirements for defining intent, so it can be worth confirming requirements for the state in which you plan to attend school.
Because residency rules can be strict, establishing residency may not make sense for everyone. But if you’re considering grad school or are going to undergrad as an independent or nontraditional student (someone who doesn’t fit the mold of a recent high school graduate attending college), then it may make sense to establish residency first. This can also help you familiarize yourself with the university and assess whether it’s where you want to spend the next few years.
Starting at Community College
If you have your heart set on a pricey out-of-state school, one way to potentially save is to begin your education at a community college. Like public colleges and universities, community colleges receive government subsidies that can make tuition more affordable. By commuting to a community college and obtaining general education credits, you can then potentially transfer to an out-of-state institution to finish your education and potentially minimize loans.
Considering aid packages
Some private and public schools offer free or reduced-cost college tuition. These “free tuitions” are generally earmarked for students coming from families who make less than a set adjusted gross income, usually around $65,000 per year.
Some public universities also may offer generous scholarship packages to out-of-state students who reflect academic or athletic talent. If you get accepted to a school and receive a financial aid package, it may be worth speaking with the financial aid office to make sure you understand what the package entails. Typically, financial aid packages encompass grants, scholarships, and federal student loans.
Should You Go Out-of-State for College?
There is no right answer when it comes to which college is the best choice for you. But to prepare for college decisions, it can be a good idea to look beyond the honor of admission and consider the financials.
Comparing financial aid packages, assessing additional sources of tuition payment, including family contributions and private scholarships, and assessing how you might pay back your loans can all help you decide the best option for your future and for your wallet. It’s also important to remember that nothing is set in stone.
Regularly assessing your college experience — including the financials — can help determine whether you’re on a path that makes sense for you.
There is no “right” or “wrong” school or path and the right plan for you depends on a variety of factors. Speaking with people who graduated from your prospective school in your intended major can give you an idea of career paths. It can also be helpful to take advantage of any financial aid talk or info session available to get a realistic look at what it may be like when you begin to pay back loans.
The Takeaway
At the end of the day, the best decision for you may be the one that addresses your goals and your finances. Understanding different avenues for tuition discounts, including geographic-based tuition exchanges, can open up avenues to less-expensive degree paths. For some students, including grad students, establishing residency may make sense to obtain in-state tuition.
Tuition is complicated, and scholarships, grants, federal loans, private loans, and family contributions are all part of paying for school. You also may use this time to assess the what-ifs: What if circumstances change and a tuition fee that was possible this year becomes impossible next year due to job loss or other change in circumstance? What sort of private loans are available, and what terms do they offer?
For example, students who did take out student loans for college or graduate school may consider refinancing after they graduate. In some cases, refinancing your student loans can help qualifying borrowers secure a lower interest rate, which may make the loan more affordable in the long-term.
Refinancing federal loans eliminates them from borrower protections, like income-driven repayment plans and student loan forgiveness, so it’s not the right choice for all borrowers.
Assessing the tuition price of each place you’re accepted — and considering private loan options, if necessary — can be an integral factor in making a decision that makes sense for all aspects of the next step in your educational journey.
With SoFi, refinancing is fast, easy, and all online. We offer competitive fixed and variable rates.
SoFi Student Loan Refinance If you are a federal student loan borrower, you should consider all of your repayment opportunities including the opportunity to refinance your student loan debt at a lower APR or to extend your term to achieve a lower monthly payment. Please note that once you refinance federal student loans you will no longer be eligible for current or future flexible payment options available to federal loan borrowers, including but not limited to income-based repayment plans or extended repayment plans.
SoFi Loan Products SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.
Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.
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.
Life is expensive and paying for rent can take up a significant chunk of your paycheck. In an ideal world, 30 percent of your income should go towards rent and housing costs. But life happens and you may come up short on rent due to loss of income or other unexpected expenses, leaving you wondering if you should take out a loan to pay rent. Coming up short on your rent payment is an extremely stressful situation and you’ll be looking for ways to make your rental payment and avoid eviction.
If you find yourself in this situation, what do you do? There are several options to weigh and taking out a loan to pay rent is one of them. Let’s walk through the pros and cons of rent loans and discuss several options you can consider if you’re behind on rent payments.
Is it possible to take out a loan to pay for rent?
If you get behind on rent payments, you’re not alone. In fact, more than 7 million renter-occupied households are behind on just last month’s rent alone. So, what are your options and is it possible to take out a loan to pay for rent? The short answer is yes, you can.
Using a loan to pay rent is an option. You can obtain a personal loan to pay rent and for some people, it’s a good idea. However, before you take out rent loans, you need to consider if it’s the right choice for you.
Pros of using a personal loan for rent
If you’re strapped for cash and need to pay for rent, there are some plus sides to taking out a personal loan for rent.
Pro #1: Provides a window of time for re-assessing your finances
By taking out a personal loan to cover your rent, you buy yourself some time to get your budget back on track. With a personal loan, you can pay for rent (either what you owe from missed payments or for future rent payments). Once you pay your rent, you’ll find yourself less stressed and you’ll think more clearly so you can get your budget back in a place where you can pay your loan back and have enough money for future rent payments.
Pro #2: Gives you flexibility
Personal loans allow you to use the loan money for anything you need. So, taking out a personal loan gives you the flexibility to use the money for rent or any other expense you need to cover. This flexibility is enticing for renters who need some financial help as the loan doesn’t specify what you can and cannot use the money for.
Pro #3: You can shop loan ranges and rates
Before taking out a personal loan, you’ll be able to shop around for loan ranges and rates. Make sure to compare your findings before you make a decision. You can take out a loan for as little as $1,000 or as much as $60,000 if needed. You can also compare interest rates.
It is important to try and find a loan with a low interest rate so you don’t accrue more debt than is absolutely necessary.
Pro #4: Can build a credit score
This is both a pro and con of personal loans, depending on how diligent you are with repayment. If you make your loan repayments in full and on time every single time, you’ll pay the loan off within the limits and build your credit score. If your credit score took a hit or is low, this is one way to rebuild your credit history.
However, it’s essential that you meet the terms of the loan for this to benefit you.
Cons of using a personal loan for rent
As with everything, when there are pros there are cons. Before taking out a loan to pay rent, consider the negative impacts of rent loans.
Con #1: You’ll pay interest
With any type of loan, you’ll pay interest on the amount you borrow. So, if you take out a personal loan toward rent, not only will you pay the rent money, you’ll also be paying money toward the interest.
If you have no other options, then taking out a loan for rent allows you to make your payment, stay in your apartment and come up with a new financial plan. Keep in mind that you’ll pay more with this option because of interest.
Con #2: Adds to debt
When you take out a personal loan to pay rent, you’re adding to the overall amount of debt you have. This may compound your stress and overall debt, causing more problems down the road. Also, when you rent, you aren’t putting money toward eventually owning an asset as with a mortgage toward a house. So, you’re compiling debt without working toward an eventual purchase.
Con #3: Could harm your credit score
If you fail to make your monthly loan payment, you could seriously damage your credit score putting you at risk for further financial hardship.
How to find a personal loan to pay back your rent?
If you’ve come to the conclusion that a personal loan is right for you, then you’ll need to know where to look and find one. Most financial institutions will offer loans and you can shop around for the loan that is right for you. Here are some places you can go to find a personal loan to pay back your rent:
Bank
Credit union
Online banks
Loan comparison websites
Because different places offer different rates on your loan, it’s smart to get several recommendations before taking out a loan.
Other options to pay back your rent
Unsure that a personal loan is right for you? We also have provided several other options to consider when you need money to pay back your rent. Before taking out a loan, you could consider:
1. Talking to your landlord
When you first realize that you may not have the money to pay your rent or if you’ve missed the due date, you’ll want to talk to your landlord immediately. Getting in front of the issue and addressing it openly is always a wise move.
Ask your landlord if he/she is willing to defer rent, offer a payment plan or waive late fees. You never know unless you ask!
2. Borrowing from a friend or family member
Do you have a trusted friend or family member that could loan you money for rent payback? If so, this is a less expensive option compared to getting a personal loan. Sometimes, close family or friends will loan you the money, interest-free, which is always a better option.
3. Call 211
You can the 211 community phone line to get referrals for services, like financial resources. If you’re in a bind, try calling this number and get in touch with local resources that can help with rent relief.
4. Consider a roommate
Imagine your rent payment being cut in half. Would that free up some of your budget? The answer is most likely yes. If you have space, you may consider getting a roommate who can share the cost of rental expenses and save you money, too.
5. Get a side gig
Nowadays, there are several side hustles that you can do from home, after work or at your convenience that pays well and would help your income. If you can get a side hustle that’ll cover the additional money you need for rent, this is a great option because it puts you in control of your money and you don’t need a loan to cover the extra expense of rent paybacks.
6. Reallocate your budget
Sometimes, we spend money on things like coffee, eating out or shopping and don’t realize how much of our budget it’s taking up.
Before you take out a personal loan, take a hard look at your expenses and budget to see where you can trim the fat. If there are areas to cut back on and reallocate expenses to rent payback, do this before taking out a personal loan.
Know your financial options
Now that you understand the pros and cons of loans to pay rent, you can make an informed decision if this is right for you. As always, you may want to consult a financial advisor before making a big decision like this to get professional guidance on what is best for you and your situation.
The information contained in this article is for educational purposes only and does not, and is not intended to, constitute legal or financial advice. Readers are encouraged to seek professional legal or financial advice as they may deem it necessary.
Sage Singleton is a freelance writer with a passion for literature and words. She enjoys writing articles that will inspire, educate and influence readers. She loves that words have the power to create change and make a positive impact in the world. Some of her work has been featured on LendingTree, Venture Beat, Architectural Digest, Porch.com and Homes.com. In her free time, she loves traveling, reading and learning French.
When architect Simon Storey’s clients took him to a steep lot of undeveloped land for sale in Silver Lake, he advised them to pass. Storey’s firm, Anonymous Architects, is used to building on difficult sites, but he knew this particular lot would be especially challenging.
“It’s more difficult and more time-consuming,” says Storey.
The lot lingered on the market for a few years and then the asking price dropped. That’s when Storey and his wife, Jen Holmes, decided they were willing to take on the difficult ground-up construction.
Sloped lots typically require excavation and complicated and costly foundations, and have issues ranging from erosion to drainage to landscaping. It’s not for the faint of heart.
“It’s such a huge pain. But I proved myself right: It wasn’t easy,” he says.
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Storey and Holmes bought the 2,900-square-foot lot in 2017 for $92,000 and started to plan their home. The land was not just steep — a grade of 33% — but also long and narrow. (For comparison, the steepest street in Los Angeles, Eldred Street in Highland Park, has the same slope.) The couple bought the land from entrepreneur Judd Schoenholtz, who bought the lot in a trust sale. Ironically, Schoenholtz was considering how to build on it and had looked at some of Storey’s other houses for inspiration. “Simon is probably the only one who could figure it out,” he says with a laugh.
Working within the constraints of a narrow lot was familiar to Storey, who had previously built his own home in Echo Park, a compact but elegant structure whose 960 square feet exceeded the 780-foot-lot it was built on.
Storey’s previous home, dubbed Eel’s Nest after the slender homes typical of dense neighborhoods in Japan, was a study in efficient urban living. He found ways to enlarge the space, just 15 feet wide, through the clever use of windows and skylights, high ceilings and a floating staircase that did double duty as a light well.
Storey and Holmes wanted to take the best parts of Eel’s Nest and the lessons learned from living in that space for more than a decade and apply them to this new project, which they called the Box. Once again the constraints of the lot dictated the design. “We had no choice but to go right up to maximum width and stick with it for the entire building,” explains Storey.
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The result is a long building that spans just 18 feet across and 100 feet long. Yet adding just three more feet than their previous house makes a dramatic difference. “Every inch makes an outsize difference. I don’t think of it as being a narrow building,” says Storey.
Storey wanted the house to be as utilitarian as possible. He chose a corrugated cement panel typically used for farming and industrial buildings in Europe as a siding material above the two-story concrete base.
With the structure built three feet from the property line, the couple were constrained by city code in the amount of windows allowed on the side of the building. As a result, the windows are arranged in a horizontal expanse, providing panoramic views of the hills in Silver Lake and Echo Park.
The entrance to the house is set back another five feet, allowing double-height windows that span two stories, bringing in more light. The floating staircase from Eel’s Nest makes another appearance in the Box, across from the entrance. A narrow walkway on the top floor connects the front and back of the house but allows light to filter in on both sides to the floor below. The skylight in Eel’s Nest also reappears in the Box, bringing more light into the shower in the primary bathroom.
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With a workshop sitting between the ground-floor garage and the two main stories of the house, Storey and Holmes were able to construct all of the cabinetry, millwork and even features like their stair treads on-site. “Anything made of wood we built ourselves,” says Storey.
Holmes, who works in development at LACMA but was an art student in college, found her sculpting skills came in handy. “I knew how to weld but didn’t do it for 20 years,” explains Holmes, who took a half-day welding class at Gearhead Workshops in Torrance to brush up on her skills.
In fact, much of the construction they did themselves, as a budgetary consideration but also to ensure the level of detail met their standards. Weekends, holidays and vacation days for nearly three years were spent working on the house.
The couple estimate they spent 5,500 hours working on the house, not including the hours spent on planning, designing and general contracting, and saved about $520,000 in construction costs based on pricing from comparable projects Storey has worked on.
“I’d take naps on a furniture blanket on the floor or in the car,” says Holmes, who became a regular at the nearby Whole Foods to pick up meals before they had a working kitchen. “Everyone [who works] there knows me and I know all of them.”
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Other expenses included $300,000 for the foundation, more than three times what it would have cost for a similarly sized project on a flat lot, and about $20,500 for geology consultants to survey the slope. All together the project came in at roughly $1.3 million. However, the average homeowner shouldn’t expect such a deal. Acting as his own architect, general contractor and builder helped Storey and Holmes save considerably. Additionally, every hillside lot presents its own hidden expenses — and what a house costs to build is often very different than its market value in competitive L.A.
Before they started on the cabinets, the pair worked on sealing the envelope of the house to ensure better air quality and circulation. They meticulously identified every gap in the framing stage, foaming and caulking the gaps to improve efficiency.
Once that was complete, they set about building their own window frames and cabinetry. The two handpicked all of their own lumber from Bohnhoff Lumber Co. in Vernon, a decision Storey says is key to guaranteeing high quality. “It was a cost issue but also a quality issue. There is a shocking level of inconsistency when you don’t pick it yourself.” The natural wood provides a calming contrast to the industrial materials used on the exterior.
Most of the casework is a mix of red and white oak. With construction of the house happening during the pandemic, the cost of white oak saw a precipitous rise. Storey and Holmes began to introduce red oak as an accent material, though the effect is still monochromatic. “I don’t want to live somewhere austere, but I like things that are minimal,” says Holmes.
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All of the cabinetry and woodwork is custom, designed to suit the couple’s needs. Separating the kitchen and living room is a multipurpose room-within-a-room that includes a custom pantry on one side and cabinetry to house their record collection and stereo on the other.
“Every element of the house has a function,” says Storey. The focus on utilitarian design is a carryover from Eel’s Nest. “We are squeezing as much utility into the building as possible.” Appliances, primarily Fisher & Paykel, are hidden behind custom wood panels, as are closets and bathrooms.
With four bedrooms and three bathrooms, the house was designed to be flexible enough to adapt to changing needs. Planned prior to the pandemic, Storey’s design called for his office to occupy the back of the house, with living spaces in the front. However, the office can easily be converted into a guest suite for relatives or visitors that includes a kitchenette and a private entry.
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As a passionate cook, Holmes programmed the layout of the kitchen to her specifications. The sink is placed in a central island, facing the views. “Every party I go to, people end up in the kitchen,” says Holmes. “I wanted it to be comfortable to cook in but also a place to entertain. We can have four or eight or 20 people here and it doesn’t feel too big or too small.”
While Holmes wanted the kitchen to be as functional as possible, Storey wanted the kitchen to not look like a kitchen at all. “The fridge and freezer vanish. Nothing screams ‘kitchen.’ We had competing objectives but managed to merge into a perfect solution,” he says, adding, “It’s a good allegory for marriage.”
A roof over your head is a great blessing. However, homeownership has its ups and downs. One of those low points might be shelling out thousands of dollars to replace the roof that has protected you from the elements for years.
At some point, every roof will need to be replaced. It’s one of the many joys of homeownership. But, according to Angi, the average roof replacement cost ranges from $4,900 to $14,100. With a wide range of costs, you may be wondering how you can land the best deal.
The wide range of roof replacement costs is due to various factors such as style, location, the size of your roof, and the professional you hire.
Let’s take a closer look at how you can lower your overall costs and get ready for this significant undertaking.
Factors Affecting Roof Replacement Cost
The cost of replacing your roof can vary significantly based on several key factors. Understanding these factors is crucial for managing your budget effectively. Here are the primary elements that influence roof replacement costs:
Roofing material: The type of material you choose for your new roof can have a substantial impact on the overall cost. Materials like asphalt shingles are generally more affordable, while options such as metal or slate can be considerably more expensive.
Location: Your geographical location plays a role in cost variations. Areas prone to extreme weather conditions or high wind zones may require more durable and costly roofing materials.
Roof size and complexity: Larger roofs with multiple peaks and angles, as well as varying roof pitch, will require more materials and labor, leading to higher costs.
Professional you hire: The choice of roofing contractor can affect costs. Highly experienced professionals may charge more for their expertise.
Additional accessories: Roofing accessories such as flashing, underlayment, and ventilation systems can add to the overall expense.
Types of Roofing Materials and Their Costs
When it comes to replacing your roof, one of the critical decisions you’ll face is choosing the right roofing material. The choice of material not only affects the aesthetics of your home but also significantly impacts the overall cost of the project. Let’s delve deeper into some common roofing materials, their characteristics, and how they influence the cost of roof replacement.
Asphalt Shingles
Cost: Basic asphalt shingles are often the most budget-friendly option, with prices ranging from $1.20 to $4 per square foot.
Durability: They offer reasonable durability and come in various styles and colors to match your home’s design.
Energy efficiency: Standard asphalt shingles are less energy-efficient compared to some other materials.
Metal Roofing
Cost: Metal roofing tends to be more expensive, typically starting at around $5 per square foot.
Durability: Metal roofs are known for their longevity and resistance to harsh weather conditions.
Energy efficiency: They are highly reflective and can help reduce energy costs.
Slate Tiles
Cost: Slate tiles are among the costliest roofing materials, often exceeding $10 per square foot.
Durability: They are incredibly durable and can last for a century or more if properly maintained.
Energy efficiency: Slate tiles provide excellent insulation, contributing to energy efficiency.
Wood Shingles
Cost: Wood shingles fall in the mid-range of roofing material costs, typically starting at $5 per square foot.
Durability: They offer a charming, rustic look but may require more maintenance.
Energy efficiency: Wood shingles provide decent insulation but may not be as energy-efficient as some other options.
Solar Panels
Cost: Solar roofing can be expensive, considering both the cost of the panels and installation.
Durability: Solar panels have a long lifespan and generate renewable energy.
Energy efficiency: Solar panels are highly energy-efficient, potentially reducing your utility bills.
Clay Tiles
Cost: Clay tiles are often on the higher end of the cost spectrum, starting at around $10 per square foot.
Durability: They are incredibly durable and can withstand severe weather conditions.
Energy efficiency: Clay tiles provide good insulation, contributing to energy efficiency.
It’s important to note that the roofing costs mentioned here are approximate and can vary based on factors such as your location, the complexity of the project, and the specific product you choose. When selecting a roofing material, consider not only the initial cost but also its longevity and energy efficiency, as these factors can impact your long-term savings and the value of your home.
By understanding the characteristics and costs associated with different roofing materials, you can make an informed decision that aligns with your budget and aesthetic preferences. Keep in mind that the choice of material is a significant factor in determining the overall cost of your roof replacement project.
When Should You Replace Your Roof
The first thing you need to do is determine whether you really need a new roof. A visible hole in your ceiling is not the sign you should be waiting for. If you get your roof replaced before it reaches the final stop of its useful life, then you could be avoiding potentially bigger problems down the road.
A few signs that your roof is ready to be replaced include:
Water leaking into the house
Cracked shingles
Missing shingles
Shingles that are curling on the edges.
“Bald spots” on your roof where granules are missing.
Overall signs of age on your roof.
Another tip is to be mindful of your neighbors. If your homes were built in the same time period, then you may notice many new roofs in the area. It could be a sign that the inevitable demise is coming to your roof soon.
As soon as you spot any of these signs, you should start considering a new roof. The longer you wait, the more damage might be done to the value of your home.
If you are considering selling your home, do not assume that you can pass along the failing roof to the new owner. Many buyers will shy away from aging roofs because it is an added cost that they can easily avoid by choosing another home to buy.
Make sure to regularly take a closer look at what is happening on your roof. You can help prolong the life of your roof by taking care of it. For example, removing moss and algae growing in your shingles can prevent damage to the shingles can help prevent damage to your roof’s shingles.
How much does a roof replacement cost?
As with all things in life, you have choices for your roof replacement. The total roof replacement cost will vary considerably based on your choices.
The costs stem from the materials, labor, and disposal of your old roofing material.
In terms of material, you’ll need to choose between numerous shingles such as wood, clay, asphalt, solar, slate tiles, metal, and more. The material you choose may be based on cosmetic preference or necessary toughness to combat the elements of different locales. For example, in high wind areas of hurricane-prone Florida, homeowners are required to upgrade their roofing materials in hopes of withstanding potential hurricanes.
Asphalt shingles will most likely be your least expensive choice. An asphalt shingle roof costs about $1.20 to $4 per square foot to remove and replace an entire roof. Other materials, such as metal roofing, will generally cost at least twice as much per square foot. However, a new metal roof will likely save you money on homeowners insurance.
The cost to install 30-year architectural shingles is typically around $350 to $500 per square foot. And 50-year architectural shingles are even more expensive. Of course, they are stronger and last longer.
For labor, the size and construct of your roof will be a significant factor. If you have many peaks and ledges, expect your labor costs to be higher.
Assessing the Condition of the Current Roof
Before diving into a roof replacement project, it’s essential to assess the condition of your existing roof thoroughly. This step can significantly impact your overall cost and project planning. Here’s how to evaluate your roof’s condition:
Look for signs of damage: Check for water leaks, cracked or missing shingles, curling edges, bald spots, and any visible signs of aging.
Neighborhood trends: Pay attention to neighboring homes; if many have recently replaced their roofs, it might be a sign that your roof is due for replacement soon.
Preventive maintenance: Regular maintenance, such as removing moss and algae, can extend your roof’s lifespan and help you avoid costly roof repairs.
When evaluating the condition of your current roof, you might find that not all areas require a full roof replacement. In some cases, a partial roof replacement can be a viable option. This approach is typically chosen when the damage is localized to specific sections of the roof or when budget constraints are a concern.
Estimating the Size and Complexity of the Project
Understanding the size and complexity of your roof replacement project is vital for accurate cost estimation. Here’s how to estimate the scope of your project:
Measure your roof: Determine the square footage of your roof to calculate the amount of materials needed.
Consider roof design: Roofs with many peaks and angles may require more labor and materials, leading to higher costs.
Roofing layers: If your existing roof has multiple layers, removal and disposal costs will increase.
Roof features: Any additional features like chimneys, skylights, or roof vents can affect the complexity of the project.
Labor and Installation Costs
The cost of labor and installation is a significant part of your roof replacement budget. Several factors influence these costs:
Roof size: Larger roofs require more labor hours, leading to higher installation costs.
Roof complexity: Roofs with unique designs or many angles may demand more skilled labor, increasing costs.
Contractor expertise: Experienced contractors may charge higher labor fees, but their quality of work can be worth the investment.
Location: Labor costs can vary by region due to local labor rates and demand.
Additional Costs for Roofing Accessories
In addition to the primary roofing material and labor, there are other accessories and components that can impact your roof replacement cost. These include:
Flashing: Necessary for sealing roof joints and preventing leaks.
Underlayment: Provides an extra layer of protection beneath the roofing material.
Ventilation systems: Ensures proper airflow in the attic, which can affect the longevity of your roof.
Gutters and downspouts: Proper drainage is essential to protect your home’s foundation.
Removal and Disposal of the Old Roofing Materials
Before installing a new roof, the old roof must be removed and properly disposed of. This is a necessary step in the replacement process and can add to your project cost. Key points to consider:
The number of existing layers: Removing multiple layers of old roofing can be more labor-intensive and costly.
Disposal fees: Depending on your location, there may be fees associated with disposing of old roofing materials.
Potential Hidden Costs and Unexpected Expenses
While you plan your roof replacement budget, it’s essential to be prepared for potential hidden costs and unexpected expenses that may arise during the project. Some factors to be aware of include:
Structural damage: If hidden structural issues are discovered during the replacement, repairs can be costly.
Unforeseen leaks: Roofing projects can reveal additional leaks that were not visible before, requiring immediate attention.
Weather delays: Adverse weather conditions can cause project delays, potentially leading to increased labor costs.
Comparing Quotes from Different Contractors
To make an informed decision, it’s crucial to obtain multiple quotes from different roofing contractors. Here’s how to effectively compare these quotes:
Ensure each quote includes warranty information for both materials and installation.
Beware of significantly low bids, as they may indicate lower quality work.
Check online reviews to gauge the reputation of the roofing company.
Verify that the contractor is licensed by contacting your state consumer protection office.
How to Reduce Your Roof Replacement Costs
You should expect to pay thousands of dollars for your roof repair. However, there are methods to lower your overall roof replacement cost.
1. Hire a Professional Roof Inspector
If you’ve noticed that your roof is looking a bit worse for wear, then you should call in an inspector. Although it can cost a few hundred dollars to hire an inspector, it might be well worth the cost.
An inspector will be able to tell you whether you really need a new roof. They might recommend a patch or suggest that you wait a few years before replacing the whole roof. Either way, it will give you a better understanding of the problem at hand.
2. Replace or Repair?
After receiving the inspection report recommendations, you’ll need to decide whether you will replace or repair the roof. It is a good idea to go with the guidance of the inspector. However, as the owner, you have the final say in this decision.
3. Check the Home Warranty
When was your roof last replaced? If the answer is recently, then the replacement might be under warranty.
If you recently bought the home, you should check through the closing paperwork. Home warranty information is often available in that fine print. If you can’t find the information, consider contacting the previous owners to see if they can provide you with that paperwork.
The home warranty may cover your replacement costs, so it is an option you should look into.
4. Decide What You Want
Before talking to a roofing contractor or salesman, make sure you know exactly what you want on your new roof. Take the time to research the different materials and options and choose the one that will work well for your area and your budget.
Build an understanding of the features of your roof. Is it huge? Does it have many peaks and ridges that will increase labor costs?
With this level of research, you’ll be able to discuss the details of contractor bids coherently. Doing this homework helps ensure that you are not being taken advantage of. You might not need the latest and greatest product that the salesman attempts to sell you.
5. Compare Bids
Once you have a good understanding of what you need, then it is time to call in the contractors. Obtain estimates from various roofing contractors. Each bid should include roof warranty information on both the materials and the installation.
Do not automatically jump for the lowest bid. If the bid is significantly lower, do more research before accepting that bid. Sometimes very low bids translate into lower quality work. Online reviews of a roofing company may help you find out if the company is worth doing business with.
Make sure to confirm that the bid is from a licensed contractor. You can contact your state consumer protection office to confirm this.
Trust your instincts when choosing a roofer. You want a roof that will last for years to come at an affordable price. Cutting corners now will only cause more problems down the line.
6. Go the DIY Route
In the world of homeownership, there is always the option to fix the problem yourself. Although the roof is a high stake home repair, you may be able to do part of it yourself for a fraction of the cost.
The labor costs of a DIY roof replacement can account for the bulk of the expense. Sometimes, a contractor will allow you to remove the old roofing material yourself to cut the total cost. However, you should only pursue this option if you have the proper tools and knowledge.
7. Check Your Insurance Policy
If you are like most Americans, you carry a homeowner’s insurance policy on your home. In that case, the policy might cover roof damages.
Most insurance policies will help cover some or all of your roof replacement. However, if the need for replacement is due to neglect, then it is unlikely they will assist you. Call your insurance provider to find out how much they might be willing to cover.
8. Ask for a Discount
Most roofers are at the whim of seasonal work. In the winter, work can dry up in some places. Whereas in the summer, they can’t work through the jobs fast enough.
If you are willing to wait for a convenient time for the roofing company, then ask if they will give you an off-season discount. For example, you could request a 10% discount to wait until they have a slow month for your roof repair.
It never hurts to ask; the worst thing they can say is ‘no.’
Financing Options for Roof Replacements
Replacing a roof can be a significant financial undertaking. If you’re concerned about the upfront cost, consider these financing options:
Home improvement loans: Home improvement loans are tailored for renovation projects like roof replacement. They typically offer competitive interest rates and flexible terms, available from banks or online lenders.
Home equity loans or lines of credit: Leverage your home’s equity to finance your roof replacement. Home equity loans provide a lump sum upfront, while home equity lines of credit (HELOCs) offer flexibility in accessing funds.
Insurance coverage: Review your homeowner’s insurance policy to check if it covers roof replacement, especially for damage caused by specific covered perils like severe storms or hail.
Contractor financing: Many roofing companies offer financing options to help you manage the cost of roof replacement. When considering this option, inquire about terms, interest rates, and the company’s reputation to ensure transparency and fairness in their financing offerings.
Bottom Line
Understanding the cost of roof replacement is a crucial step for homeowners. It’s not merely an expense but an investment in the protection and value of your home. By taking the time to assess your roof’s condition, research materials, budget wisely, and seek multiple quotes, you can make informed decisions that align with your financial situation.
Roof replacement can be a substantial undertaking, but with careful planning and consideration, you can ensure the longevity and safety of your home. Remember that each roof is unique, and roofing costs can vary based on several factors. Whether you’re facing an imminent replacement or planning for the future, being well-informed is the key to making cost-effective choices for your roofing needs.
Frequently Asked Questions
How much does a roof cost?
The cost of a roof varies widely based on factors like size, materials, and geographic location. For standard materials like asphalt shingles, prices can range from $7,000 to $12,000 for an average-sized home. More premium materials like metal, slate, or tile can significantly increase the cost. Additional factors like roof design complexity, labor rates, and regional costs also play a crucial role in determining the final price.
What is the average cost of replacing a roof?
The average cost of replacing a roof in the United States is around $10,000, but pricing can vary widely depending on factors like the size of the roof, materials used, and geographic location. High-end materials or complex roof designs can push costs significantly higher.
How do different types of roofs affect the replacement cost?
The type of roof has a major impact on replacement costs. Asphalt shingles are generally the most affordable, while materials like metal, tile, or slate are more expensive. The complexity of the roof design, such as the presence of skylights or multiple levels, also affects the cost.
Are there any additional expenses associated with roof replacement?
Yes, there can be additional expenses beyond the basic cost of materials and labor. These might include costs for permits, structural repairs, gutter replacement, or disposal of the old roofing materials. These costs should be considered when budgeting for a roof replacement.
Does the size of the roof influence the cost?
Absolutely. The larger the roof, the more materials and labor will be needed, which increases the overall cost. Roofing costs are often calculated by the square foot, so a larger roof area will result in a higher total cost.
What factors can affect the overall cost of a roof replacement?
Several factors can affect the total cost, including the type of roofing material, the complexity of the roof’s design, the need for structural repairs, local labor rates, and whether the old roof needs to be removed first. Weather conditions and seasonal demand can also play a role.
Is roof removal included in the replacement cost?
In many cases, the cost of removing the old roof is included in the roof replacement quote. However, this is not always the case, so it’s important to clarify this with the contractor. The cost of removal can vary depending on the size and material of the existing roof.
Do I need permits for a roof replacement?
Yes, most local governments require permits for a roof replacement. The cost and requirements for these permits vary by location. It’s important to factor in these costs and ensure that your contractor handles the permit process.
Are there any financing options available for roof replacement costs?
Many roofing contractors offer financing options to help manage the cost of roof replacement. Additionally, some banks and credit unions offer home improvement loans. It’s advisable to compare rates and terms to find the best financing solution.
What are some signs that indicate a need for a roof replacement?
Signs that you may need a roof replacement include missing or damaged shingles, frequent leaks, sagging, and daylight visible through the roof boards. If the roof is more than 20 years old, it might also be time to consider replacement.
How long does a typical roof replacement take?
The time required for a roof replacement can vary, but most projects are completed within a few days to a week. Factors that influence the timeline include the size of the roof, weather conditions, and the complexity of the job. More complex projects or unforeseen issues can extend this timeline.
How much can I save by replacing my roof myself?
DIY roof replacement can lead to significant savings, primarily by eliminating professional labor costs. You may also reduce expenses by sourcing materials and handling waste disposal yourself.
However, while DIY can cut initial costs, it’s crucial to consider the value of professional workmanship, which often ensures quality and adherence to safety standards. Inexperienced DIY attempts might lead to costly future repairs, potentially offsetting the initial savings.
College graduates who have been bit by the travel bug but don’t have the funds to see the world might still have the opportunity to travel by working abroad after college. Living and working in a new country may have its challenges, but the experience may also transform graduates in ways that are likely to be impressive to future employers.
The Pros and Cons of Working Abroad
Though it can be an enjoyable experience, working abroad can also have challenges. Considering both the pros and cons is recommended before making this life-changing decision.
Pro: Making Money While Traveling
Working abroad allows graduates to start their career while also having the opportunity to travel. This can be a popular post-graduation choice for students who want to travel but don’t have the funds. Moving to a new country generally makes it easier to truly explore and get to know a country better.
Traveling to nearby countries may be easy, as well. Instead of visiting a single country during a one-week vacation, traveling workers might be able to experience multiple countries and cultures.
Recommended: Ways to Be a Frugal Traveler
Pro: Learning the Language
Living abroad gives people a great opportunity to learn a new language or sharpen their skills in one they already speak. Every situation, from ordering breakfast to figuring out transportation, will give recent grads an opportunity to improve their language skills. The ability to speak more than one language might also open more doors in the job market. Being multilingual has become an increasingly desired skill, and learning a language while abroad could pay off in the future.
Con: Culture Shock
Unfamiliar surroundings. A different culture. Moving to a new country means making adjustments. People will communicate differently, eat differently, work differently. Every part of life will be new, which can be both exciting and stressful. Adjustment to life in a new place may be experienced in a range of stages, beginning with excitement and enthusiasm, with maybe some frustration in the middle, to feeling at home in new surroundings and building relationships.
Con: Language Barrier
Dealing with a language barrier can be stressful and scary. Not only can a language barrier make daily activities difficult, it can also make building relationships slow-going. This can feel isolating for people who don’t understand the local language.
Finding Jobs
Finding an international job isn’t all that different from finding one here in the states. Recent grads might consider looking on well-known job search sites or those specific to finding opportunities in other countries. Some overseas job opportunities might be found on websites for international humanitarian organizations, travel magazines, or even the United Nations.
Requirements to Work Abroad
Getting a passport or travel visa and an employment visa are important parts of preparing to work in a foreign country. Most countries grant specific work visas to international workers, but the requirements and processes for getting the visa will vary by country.
It’s also important to know whether or not fluency in the language is required. People who are not fluent in a language other than English and do not want to learn before moving may want to consider countries where English is the official language.
Employment Abroad
Graduates who like to think long term may want to consider applying for jobs with global companies that have positions in multiple countries, including the United States. This may open up opportunities to move back to the U.S. in the future.
One popular choice for working abroad is teaching English. A teaching degree may or may not be required, so make sure to check the requirements in the country you are considering.
Another popular option is to look for seasonal work, such as jobs in the tourism industry. This can include working at a ski resort, a hostel, or bartending at a local restaurant. People who enjoy caring for children might be interested in working as an au pair, which typically includes room and board in addition to a salary.
Other Post-Graduation Decisions
Finding a job isn’t the only task that begins after graduation. Once a student graduates, drops below half-time enrollment, or withdraws from school, the task of paying back student loans begins. Direct Subsidized, Direct Unsubsidized, and Federal Family Education Loan borrowers have a six-month grace period before they’re required to start making payments. Students who took out a Perkins loan have a nine-month grace period.
Refinancing student loans into one new loan may offer borrowers a lower interest rate or different terms than their existing loans. Both federal and private student loans can be refinanced, but when federal student loans are refinanced by a private lender, the borrower loses federal benefits, such as income-driven repayment plans, loan forgiveness programs, deferment, and forbearance.
The Takeaway
Whether your future employment is in the U.S. or in a foreign country, there are many options to consider. Pros of working abroad after college include gaining new work and life experiences, learning a new language, and making money while traveling. Cons of working abroad include experiencing culture shock and language barriers, and possibly missing out on events back at home.
However, no matter where your future employment takes you, if you have a student loan, repayment will follow.
If refinancing a student loan is something you’re considering, SoFi has options that may work for your situation. Saving money is simple with SoFi’s online application process, low fixed or variable rates, and flexible terms.
See if you pre-qualify for student loan refinancing with SoFi.
SoFi Student Loan Refinance If you are a federal student loan borrower, you should consider all of your repayment opportunities including the opportunity to refinance your student loan debt at a lower APR or to extend your term to achieve a lower monthly payment. Please note that once you refinance federal student loans you will no longer be eligible for current or future flexible payment options available to federal loan borrowers, including but not limited to income-based repayment plans or extended repayment plans.
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Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.
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.
A home loan that rewards you for your loyalty, does away with pesky fees, and has a low variable rate that’s well below the average home loan in Mozo’s database.
This is the bar set by the digital home loan brainchild of CommBank, Unloan.
Since its launch 18 months ago, Unloan has become a force in the home loans space scooping two Mozo Experts Choice Awards^, including Best New Home Loan.
Designed to ‘undo’ your mortgage, Unloan comes with a competitive variable rate of 5.74% (5.79% comparison rate*) for owner occupiers (market average for 80% LVR currently sits at 6.77% variable ^^). And in what Unloan says is an Australian-first, borrowers will receive an extra 0.01% p.a. discount, every single year, for a maximum of 30 years.
Unloan claims its online application process can be completed in as little as 10 minutes. Refinancers with at least 20% deposit or equity can apply now, for loans of up to $10 million.
“Now more than ever, borrowers are looking for ways to reduce their mortgage repayments,” said Mozo expert judge, Peter Marshall. “With the winning combination of low rates, unique features, the scrapping of fees, and big bank backing, Unloan has set the bar for what a leading home loan looks like in 2023.”
*
WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. The comparison rate displayed is for a secured loan with monthly principal and interest repayments for $150,000 over 25 years.
**
Initial monthly repayment figures are estimates only, based on the advertised rate. You can change the loan amount and term in the input boxes at the top of this table. Rates, fees and charges and therefore the total cost of the loan may vary depending on your loan amount, loan term, and credit history. Actual repayments will depend on your individual circumstances and interest rate changes.
^See information about the Mozo Experts Choice Home Loan Awards
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