Failing one class does not mean you’ll automatically lose access to federal financial aid. But these funds do have academic eligibility requirements, as outlined in your school’s satisfactory academic progress (SAP) guidelines. So if you fail to meet the SAP requirements set by your school’s financial aid office, you could be cut off from future aid.
Federal aid — any aid you received by submitting the Free Application for Federal Student Aid (FAFSA) — could include need-based grants, work-study and federal student loans. These could be taken away if you violate your school’s SAP policy.
Each institution defines its own SAP policy, so requirements could vary. But many schools follow these guidelines.
Students must:
Maintain a minimum cumulative GPA between 1.6 and 2.0.
Complete at least 67% of all attempted credit hours.
Finish a degree in no more than 150% of the program’s average number of required credit hours. (If the degree typically requires 120 credits, you can only get financial aid for 180 credits — including classes that you failed or dropped.)
Contact your school’s financial aid office for information on your specific SAP requirements.
What happens if you fall below your school’s SAP requirement?
Before cutting your access to federal financial aid, a school may issue a warning and put you on probation. You may still have access to federal funds during this time, but your grades, for example, are expected to improve. If you do not achieve SAP standards by the conclusion of your probation, you will be unable to receive federal funds until you do. How long you’re ineligible for aid depends on how often the school evaluates student performance.
Some schools only offer SAP probation if you fail to meet academic guidelines due to extenuating circumstances, such as a death in the family or serious illness or injury. By submitting a satisfactory academic progress appeal, you can explain why you could not meet SAP standards and why you believe you will be able to meet those standards in the future. If your appeal is approved, you may be able to maintain financial aid eligibility while the college monitors your progress.
How to regain eligibility for financial aid
To regain access to federal aid, you’ll need to show your institution that you can make satisfactory academic progress as outlined by the financial aid office. You might need to:
File a satisfactory academic progress appeal. Depending on the school’s process, filing an approved SAP appeal could help you regain access to aid faster by placing you on probation, where your performance is evaluated more frequently.
Retake courses at your current school. To improve your GPA or pass more classes, you may need to retake what you previously failed. This can be hard to do without federal financial aid. You may need to consider private student loans to close the temporary gap in funding — but only if you have a solid plan to improve your grades and meet SAP standards.
Transfer to a less expensive college. Improving your grades without financial aid is no small feat. Consider transferring to a less expensive university or community college while you raise your GPA and accumulate enough credits to meet SAP requirements. You can also enroll part-time so that you can work while taking classes.
Submit the FAFSA every year. Your completed FAFSA is valid for one academic year. Complete the FAFSA each year to qualify for federal aid, especially if you’re in better academic standing and are now meeting SAP requirements.
Life insurance coverage is an essential financial tool.
The proceeds from these policies can often make the difference between loved ones dealing with long-term financial hardship or being able to move forward with paying off debts or paying their everyday living expenses in the case of the unexpected.
When considering the best life insurance policy for you, it is important to determine the type and the amount of coverage that you require, as you don’t want those you care about to be underinsured.
An equally important part of the equation is the life insurance carrier from which you purchase your plan. Something to consider as well is whether your prospective insurance company provides key person insurance.
It is often overlooked or not considered when planning for the future, but it can be the difference between a business making it or not upon death or health of any employee whose knowledge, work, or overall contribution is considered uniquely valuable to the company. Take the time and see if it’s something you need to get for your business or firm.
You will want to be sure that the carrier is strong and stable from a financial standpoint. Another key criterion is that the carrier has a good reputation for paying out its claims. One company that meets these factors is Aflac.
The History of Aflac Life Insurance Company
Aflac (American Family Life Insurance Company) began offering insurance coverage to its customers more than 60 years ago. The coverage that this company is considered to be “voluntary” in that the policies can supplement other insurance coverage that an individual may already have.
The founders of Aflac are three brothers – John, Paul, and Bill Amos. In starting this company, the brothers saw a need for financial protection if a medical need occurs. Aflac had its beginning in Columbus, Georgia, and it started with just 16 employees and 60 sales agents.
In just the first year, Aflac had more than 6,400 policyholders and roughly $388,000 in total assets. Over time, the company grew and expanded its list of coverage offerings to its policyholders.
One way that the company grew exponentially was by offering its products to the workplace. Here, large numbers of employees of a company could sign up for protection at one time. As the company grew, it started to offer its products internationally, and in 1974, the products were offered in Japan. Within just one year of this occurrence, Aflac has written roughly $25 million in insurance premiums. During that same year, the company also started trading on the New York Stock Exchange.
The 1980s were a time of substantial growth for Aflac – and in 1982, the company had more than $1 billion in assets. In the decade of the 1990s, the company began its now-famous advertising campaign, which features the Aflac duck.
In the mid-1990s, the company also introduced a SmartApp. This allowed agents to issue insurance business electronically – which sped up the process a great deal and allowed customers to be covered much more quickly as well.
Due in large part to its innovative advertising strategy, 9 out of 10 people recognize the Aflac name and the brand. Ever since its beginning back in 1955, Aflac has put the customer first. It does so primarily by paying out its policyholder claims in a timely and efficient manner.
Today, Aflac – a Fortune 500 company – has more than 50 million policyholders. In addition to just offering protection products, Aflac is also involved in the communities in which it serves. For example, in 2011, the company contributed more than $1 million to the Red Cross for tsunami relief in Japan. And, in 2012, the company was rated as number 69 on Newsweek’s “Green Rankings” of the largest 500 companies. By the year 2013, Aflac had appeared on Fortune magazine’s list of the World’s Most Admired Companies for the 13th time.
The company continues to grow and prosper, due in large part to helping its customers protect against the loss of income and assets, as well as helping them to pay supplemental medical expenses. Aflac has a wide reach in terms of attracting potential customers. Its key distribution channels include individuals at the work site, in retail locations, and in their home. Presently, Aflac is the number one provider of voluntary insurance at the worksite in the U.S.
Aflac’s Insurer Ratings and Better Business Bureau Grade
Aflac has very high life insurance company ratings that are provided by the insurer rating agencies. These ratings are indicative of the company’s overall financial strength, as well as its timely benefit payout to the company’s policyholders. These ratings include the following:
A+ from A.M. Best
A+ from Standard and Poor’s
As3 from Moody’s
In addition, Aflac is also an accredited member of the Better Business Bureau (BBB). It has been a member of the BBB since January 1, 1958. Also, the company has been given a grade of A+ from the Better Business Bureau (on an overall grade scale of A+ to F). This puts them on par with other top life insurance companies like Transamerica or Banner.
Throughout the past three years, Aflac has closed a total of 497 complaints through the BBB. Of these 497 complaints, 357 had to do with problems with the company’s products or services. Another 96 of these complaints were concerning billing or collections issues, 25 had to do with advertising or sales issues, 11 were about delivery issues, and eight were in regard to guarantee/warranty issues. There are also 20 customer reviews that have been posted on the Better Business Bureau’s website in regard to Aflac.
Life Insurance Products Offered by Aflac
Aflac offers several options for life insurance coverage. These include both term and permanent protection. With term life insurance, a policyholder is covered with death benefit protection only, without any type of cash value or savings build-up. Term life insurance is purchased for a certain period, or “term,” such as ten years, 15 years, 20 years, or even for 30 years, depending on the policy holder’s needs.
Permanent life insurance coverage offers both death benefit protection, as well as cash value, build up. With a permanent life insurance policy, the coverage can last throughout the policy holder’s life, provided that he premiums remain paid.
This type of life insurance protection will also allow tax-deferred growth of the funds that are inside of the cash value component. This means that there are no taxed due on the growth of these funds unless or until they are withdrawn.
A permanent life insurance policyholder may be able to borrow or to withdraw these funds for any reason at all – including the payoff of debt, the supplementing of retirement income, or the assurance that a child or a grandchild will be able to pay for their college expenses.
There are no medical questions to be answered on the Aflac life insurance policies. This means that even those individuals who may have certain health conditions can still qualify for life insurance coverage.
The plans offered by Aflac are also portable. This means that if an individual purchases a plan as a part of his or her employee benefits package if they leave the company, they may still take their life insurance coverage with them.
Aflac also offers juvenile life insurance coverage. With these plans, a child may be protected by providing insurability as an adult, as well as by providing them with a jump-start on the road to financial independence.
The company also offers AD&D coverage (accidental death). With the Aflac accidental death coverage, if the insured passes away due to injuries that are sustained from a covered accident, then an additional amount of proceeds will be paid out to his or her named beneficiary.
On the insurance plans that are offered through employers by Aflac, there is typically no direct cost to the company. Rather, employees can pay for their coverage via direct payment of the premiums through their weekly paychecks.
Aflac offers a life insurance calculator directly on their website. This can help an individual with determining just how much life insurance coverage they may require based on their specific situation.
Other Products Offered
In addition to just life insurance coverage, Aflac offers a wide range of other protection and supplemental products. These include the following:
Accident insurance – The accident insurance plan via Aflac offers cash benefits to help provide financial support during the various stages of accident care, as well as recovery. These proceeds may be used by the policyholder to help with paying for emergency treatment, or for treatment-related lodging and transportation.
Cancer insurance – The cancer insurance coverage that is offered via Aflac can help to provide a lump sum of proceeds that may be used for a wide variety of needs, such as treatment, living expenses, or uninsured medical procedures.
Critical illness insurance – Critical illness insurance protection can help to provide funds for helping with the cost of treatment of a covered illness. Having funds available can provide the peace of mind that may be required for helping an individual to recover.
Hospital intensive care insurance – Charges from a hospital stay can often be substantial – and in some cases, these may or may not be covered through a regular health insurance policy. With that in mind, a supplemental hospital insurance plan through Aflac can help. With Aflac, these funds can be made available very quickly, as the company has a one-day payment of claims.
Hospital indemnity insurance – With hospital indemnity insurance, policyholders can also be assured that uncovered expenses from their regular health insurance can be fully or partially taken care of.
Dental insurance – The dental insurance coverage that is offered through Aflac provides a wide variety of benefits, with no networks, deductibles, or pre-certification requirements to deal with. Just go through your local dentist and have your insurance information with you.
Vision insurance – Regular eye exams can do much more than just help with correcting one’s vision. These can also help to point out other health-related issues, such as high blood pressure or cholesterol, diabetes, or even a brain tumor. Having this coverage can be well worth the premium cost.
Also, Aflac also helps its client/employers with setting up benefits, such as through cafeteria plans. COBRA administration is also available through Aflac.
How to Get the Best Quotes on Life Insurance Coverage
When searching for life insurance coverage, it is important to work with an independent company that can help you in finding the very best rates. An independent company or agency will not be associated with just one single insurance carrier, but rather with multiple carriers. Because of this, you will be much better able to compare life insurance policies, benefits, and premium rates – and from there you can determine which of these will be the best for you and your specific needs.
If you are ready to begin the process of finding the best life insurance plan, then we can help you. We work with many of the top-rated life insurance carriers in the marketplace today, and we will assist you with obtaining all of the details that you require for making an informed purchase decision. We can do so for you very quickly, easily, and conveniently – all from your home computer, and without the need to meet in person with a life insurance agent. When you are ready to being, just fill out the quote form on the aide of this page.
We understand that the purchase of life insurance can be somewhat overwhelming. There are a number of variables that you need to be aware of, and you want to be sure that you are choosing the proper type and amount of insurance coverage.
The good news is that today, there are many options that are open to you. We will assist you with finding the one that best fits your specific coverage needs. So, contact us today – we’re here to help.
Hitting your growth goals is a whole lot easier with the right help. On today’s podcast with Jonathan Spears, one of the nation’s top Realtors by sales volume, we discuss how relationships can take a real estate business to the next level. We also explore Jonathan’s daily routine, offer additional information on our upcoming mastermind, and more!
Listen to today’s show and learn:
Updates on Florida’s real estate markets [4:03]
Differentiating yourself by building relationships [5:50]
A day in the life of Jonathan Spears [6:25]
Stephanie’s personal goals for the mastermind [8:54]
What is a mastermind? [10:01]
Conferences vs. masterminds [10:25]
Running your business your way [16:56]
Getting help with growing your business [18:45]
Overcoming the overwhelming aspects of real estate [23:50]
The real estate agent’s most valuable resource [26:12]
Building relationships to build your business [27:44]
Jonathan Spears
Jonathan has always considered himself an overachiever — someone who is unwilling to settle for the status quo. His exceptional drive was evident even as a teenager, when he enrolled in college before he could legally drive a car. Desiring to develop a greater understanding of the business side of the real estate profession, Jonathan opted to focus his studies at Florida State University on business and finance, graduating with a degree in Business Administration at 19 years old. Coupled with his natural entrepreneurial spirit, Jonathan discovered an opportunity to parlay his degree with his desire to launch a career in real estate when he started off working in the foreclosure resale business in his hometown of Destin, Fla. In 2015, Jonathan joined Scenic Sotheby’s International Realty. Utilizing his “go-getter” attitude and superior knowledge of the Northwest Florida real estate market, Jonathan rapidly developed a stranglehold on the luxury real estate market in the area. With business booming after only two short years, Jonathan began assembling a talented team of his own that would operate under the Scenic Sotheby’s International Realty brand; thus, Spears Group was formed. In 2020, Jonathan and his team closed over $265 million in sales, and for the second consecutive year, Jonathan was named the youngest member of “The Thousand Top Real Estate Professionals,” as published in The Wall Street Journal – inking him in the top one-half of one percent of the more than 1.3 million REALTORS® nationwide by individual sales volume. Jonathan’s greatest passion is to deliver exemplary service and keen expertise to help his customers achieve their real estate goals. He puts that knowledge to work every day, securing the best deal for his buyers and highest sale price for customers selling their luxury properties. He devotes uncompromising dedication and work ethic to his customers in every transaction. Jonathan is a devoted father and husband to his daughter Ella, son Emery and wife Juliane. As a family, they enjoy spending their time together in their backyard oasis of the Emerald Coast and their second home in Vail, Colo.
Related Links and Resources:
Thank You Rockstars! It might go without saying, but I’m going to say it anyway: We really value listeners like you. We’re constantly working to improve the show, so why not leave us a review? If you love the content and can’t stand the thought of missing the nuggets our Rockstar guests share every week, please subscribe; it’ll get you instant access to our latest episodes and is the best way to support your favorite real estate podcast. Have questions? Suggestions? Want to say hi? Shoot me a message via Twitter, Instagram, Facebook, or Email. -Aaron Amuchastegui
Have you ever heard somebody’s job title and wondered what it is they even do all day? Some jobs just seem useless, either to outside observers, or even to the people hired to work them. Some jobs are crucial to the organization; others are average, and some jobs may be just an accessory or unnecessary. Here are 17 jobs people hesitate to admit they find completely useless. Is your job here? Continue reading and let us know in the comments!
1. Sorting Files
One person shared, “My very first job. I’m a toxicologist and was hired by a very big private laboratory. My main job was to sort and redirect case files depending on the time at which the results came out. THE DOCUMENTS WERE SENT TO ME IN EXCEL. I was getting paid to just click sort by date descendingly.”
Another user replied, “I had to do something similar to this when I was doing summer help at a steel factory. They paid me $14 an hour to sit there for eight hours and just move files to different folders and rename them. Sometimes I would pull weeds and paint walls, but that was about it.”
Sorting Files
Another added, “Working for a big company, one of the top 20 in the world, I am realising how bad people are with basic computer tasks… like really bad!”
2. Teachers who Don’t Teach
“My math teacher who tells me to log in to Pearson and then disappears,” one person stated.
“I dropped a university class this term because the week 3 assignment said to ‘look up how to do this on Google, Stackexchange, or ChatGPT.’ I’m not paying 1400 dollars to be taught by an AI chat bot, [lol],” another one shared.
“As a teacher myself, trust me, these are the kinds of colleagues we can’t stand,” one Redditor added.
3. Management Consultant
One person stated, “Mine. I’m a management consultant and while I have quite a bit of industry knowledge and experience, my clients either have the same knowledge or they aren’t willing to accept change. Often times my firm gets paid a lot of money to make very little difference strategically and/or operationally. Where we do add value is in implementing enterprise-wide software solutions. Why do I stay? The money is pretty good given the futility.”
“I heard from an acquaintance of mine who is a management consultant that most of the time people just want to hear their ideas out of someone else’s mouth and will pay you to do it so that their peers will be more amenable to the idea,” another user replied.
One commenter added, “Nothing like a bunch of 20 somethings telling a bunch of C-Suit executives how to run a business.”
4. Pet Psychic
One user said, “Our Golden Retriever was getting joint therapy (shoulder injury, worked with a vet, dog did swimming three days a week in a heated pool where he could exercise without putting weight on the joint, also did some exercises, is now fine. The place also did laser therapy and acupuncture for dogs.) Someone said something about ‘Hudson’ which is our dog’s name only they were talking to another dog. ‘Oh,’ they said, ‘That’s the dog psychic’s dog.’ Apparently you could find out what your dog was thinking. I know what my dog is thinking. Most of the time he either wants what I’m eating or he wants me to throw the ball.”
Another Redditor replied, “My cousin is a ‘pet psychic.’ She’s got quite the following on IG, a fancy website, and even a podcast. She claims to receive telepathic messages from your furry friends. She can even talk to reptiles and horses now! And she’s not horsing around, apparently each species requires a specific training. I’m not sure if she’s delusional or just scamming people, but either way, she’s making a lot of $$$.”
5. Elevator Attendant
One person shared, “I’m so old I remember when they had these in department stores. Whilst shopping with my grandma one day we got in an elevator and the attendant asked if we wanted the second floor. My grandma replies, ‘Why yes, how did you know?’ He says, ‘Ma’am, there’s only two floors, and we’re currently on the first one.’”
“They’re from an era of manually operated elevators. You used to have to close the doors manually then use a lever to control the elevator and stop it just right at the floor you wanted. It was tricky and very dangerous if you got it wrong, so you had an elevator operator whose job it was to run the elevator,” the second one replied.
6. Telemarketers
“Telemarketers, I don’t know a single person who has actually purchased something from a telemarketer. Maybe it’s something the older generation does but everyone hates them and immediately hangs up on them around me,” one person stated.
“I worked as a telemarketer for State Farm when I got out of high school, and in 8 months I had one person actually let me give her a quote. It was my aunt,” another Redditor replied.
One commenter added, “I remember when I was 12 I told this random telemarketer to get a life because at that point we were getting like 5-10 calls a day. She called me back and cussed me out. To this day, I think it’s so funny.”
7. Sign Spinners
Sign spinners, or sign twirlers, are people who hold a sign and stand on the street to get attention and possibly a customer for the business that hired them.
“The job only exists because the businesses want to put a sign there, but it’s cheaper or the only legal option to hire a person to hold the sign and stand there,” one person shared.
“That was my job for one summer in college. I got to hang out outside and listen to music all day. But I always thought it was weird that they were paying some guy $15/hr to do the job of a stick and a piece of duct tape,” another commenter replied.
One Redditor added, “I had a job like that except I didn’t even have to hold the sign. They said I could just lean it against the front of the store and stand next to it.”
8. Paparazzi
Everybody knows what the paparazzi jobs are doing—stalking people, taking pictures of them, and making money.
“You know why paparazzi make a ton of money and keep doing what they are doing? Because people keep buying their photos to put in magazines that people keep buying. Stop buying the magazines and watching the shows that feature their photos, and the paparazzi will go away. Easy peasy,” one person said.
Another commenter replied, “Scum of the earth.”
One user added, “They’re just filling a demand. I blame and judge those that consume the media they produce.”
9. Bathroom Attendants
One person said, “I don’t need somebody in there pulling paper towels out of the dispenser just to hand it to me and compel me to tip them.” The second one replied, “I never saw this until I was visiting Ireland a few years back, and man, was it annoying. It’s bad enough there’s a guy standing at the sinks watching you have a leak, but then he wants a euro or two for handing you a towel to dry your hands.”
Another commenter said, “They’re essentially bathroom security guards. They prevent people from doing drugs and having sex in the bathroom.”
10. Patent Trolls
One user said, “People that apply for Patents. And then just hold onto them forever with no intent of making the thing. And then when somebody does make the thing, ho-boy, you owe me money because I own the rights to that thing! It’s one of those weird ‘Do nothing and hope to eventually get a big payout’ jobs, like Domain Squatters.”
Another commenter stated, “There should be a law that makes the patent public domain if the owner doesn’t actually use it. It would probably accelerate the progress of humanity by a big factor.”
11. Shop Security
One person said, “Shop security—in most cases, they can’t legally do anything but just watch.”
Another user replied, “Depends on the type of security they invest in. Security guards who stand at the door all day in a uniform—yes you’re right, in most cases, they’re used as a deterrent. However, store detectives go undercover and try to blend in with other customers (in their own clothes, browsing stock and carrying a basket/trolley) so that they go unnoticed. Those people are allowed to tackle shoplifters and actually do something about it.”
One commenter said, “Security is used primarily for insurance and tax reasons. You have to show that your actively trying to prevent and deter theft and accidents.”
12. Car Dealerships
“Just let me buy a car from the factory. Your job is to get me to pay as much as possible. So useless and so annoying,” one person said.
“It’s an ancient law that mandated dealerships so you’d have a guaranteed mechanic to work on it. Obsolete since auto shops are a thing,” another user replied.
“Car salespeople, realtors, stock brokers. They are pure middlemen who produce nothing for society other than putting cash in their own pocket,” another added.
13. Health Insurance Operators
One person said, “While it’s a billion-dollar industry, health insurance. Literally, they exist to prevent you from cashing out on what you paid into. They have little to no medical knowledge, make everything more expensive, and exist solely as a useless middleman to make themselves rich.”
Another person shared, “Exactly. They just refused to cover my medication that they suggested several years ago to replace another medication that they did not want to cover at the time. This time they didn’t even offer a replacement, just refused to cover my meds without any explanation. It’s an absurd world where the insurance company makes decisions on my healthcare instead of my doctor.”
14. Homeopath
“I’ll do you one better, a few weeks I saw an ad for a homeopathic veterinary doctor. I feel bad for the animals unfortunate enough to find themselves as patients,” one person shared.
“Ugh. Literally the only possible benefit homeopathy could have due to the placebo effect. Pets ain’t even benefiting from that,” the second replied.
15. Reiki Healer
One person stated, “I knew a lady, very nice and caring, but off the wall hippie, who would charge people to hold her hand over them and transmit ‘healing energy.’ She also offered long-distance reiki where she promised to send you healing energy from her couch and would even set appointments to do just that.”
Another user added, “The funny thing is anyone can just open a Reiki clinic and call themselves an expert/shaman. If you go to school for it you’re just another victim of the grift.”
16. Middle Management
“Most middle management positions. Their job is literally to take things from above and send them below, and to have someone to shift blame to.” one person expressed.
“Don’t forget all the useless meetings that they organize. I bet redundant managers everywhere were really sweating for their jobs when everyone was WFH,” another one added.
Another commenter said, “You clearly have no idea what management does. Or worked on a team that was poorly managed.”
17. Hedge Fund Managers
One Reddit user said, “They produce no goods or services that actually make the world a better place. They are gamblers and leeches on society.”
Another user replied, “I’m convinced that half the time, even the news articles about stocks are [intentionally] misleading in order to get uninformed people to bet against the winning play.”
Original Reddit Thread here.
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Growing up, my parents taught me very little about financial responsibility. It wasn’t until college, when my parents expected me to pay my own car insurance, that I was forced to learn the basics of budgeting. It was just one bill, but it was traumatic to me since I’d never paid for anything myself until that point. Looking back, the lesson was introduced too late. It didn’t “take”.
Had I understood budgeting earlier in life, some of my financial choices might have been different. Obviously, this isn’t the only reason I accumulated a mountain of debt, but it’s an example of the lack of financial education I received as a kid. (Fortunately, now thousands of dollars in debt are gone after a lot of planning and sacrifice — and of course, using coupons.) My husband and I want to teach our boys smart financial habits at a much younger age than we learned them.
An 11-Year-Old’s View of Money
For Christmas, our 11-year old son, T, wanted wanted a cell phone. Actually, when the new iPhone 4G hit the market, he suggested that he could take my 3G to use so I could get the new 4G. (His generosity knows no bounds!) While his suggestion gave his parents quite a laugh, we seized the opportunity to teach him a financial lesson. Here’s a bit of that conversation:
Me: “T, even if you did get an iPhone, the monthly plan is expensive. Who would pay for that?” T: “You can just add me onto your plan, Mom.” Me: “You didn’t answer my question, who would pay for that?” T: “Well, you would. It’s only a few extra dollars a month. You and Dad work, so that’s nothing.”
The last statement set me off a bit! My husband and I do not want our kids to think that just because money is earned means it has to be spent. We also don’t want them to think that just because their friends have the newest fill in the blank that they need it too. After this conversation with my son, we decided to teach him a financial lesson.
An 11-Year-Old’s First Budget
s Christmas rolled around, T kept mentioning the cell phone. He really wanted it. So, we sat down and had a more detailed discussion about budgeting.
Since the cell phone would be T’s first and and only bill, we talked about his cash flow. He makes $44 a month for doing his chores (with potential to make more money each month for doing other things). We broke down his current expenses. I know he’s only 11 years old, but we really wanted this lesson to impress the importance of budgeting and giving.
I suggested that if he could find a phone plan that cost 50% or less of his monthly income, we’d consider the phone. The only limit to his search was that we needed a monthly payment plan without a contract. If he didn’t pay, we didn’t want to be bound to a contract we were paying for and not using. No payment means he simply wouldn’t have a phone to use (after all, a cell phone is a want and not a necessity).
Being eleven years old and not knowing how to find the information, I came up with a list of websites for him to review (with my guidance for some online safety measures). He browsed the sites, wrote down options, and noted which carriers offered a monthly service plan option.
After his review, he gave me his analysis and recommendation. I wasn’t surprised at the suggestion since I’d done some preliminary research myself. The lowest monthly payment plan was $25, and it did offer the monthly payment option that we required. Even though this was $3 over his $22 budget, we decided it was the best financial option meeting the requirements.
As we were going over the numbers again with the $25 cost, we discussed all of T’s expenses that his $44 monthly income was expected to cover. During this talk, we reminded him about tithing, and ensuring that 10% of his income is set aside for our church.
T’s response to this didn’t surprise me: “That’s easy. I make $44 and will spend $25 on my phone bill. That leaves me with $19. So 10% of $19 is $2.” While I appreciated his stellar math skills, we also took the time to remind him that the 10% giving was before he paid any bills. For us, that lesson was equally important in his understanding of financial generosity.
Family Financial Responsibility
Going through this budgeting process was eye-opening for all of us. While some parents are worried about having “the talk,” I was equally concerned with having this budgeting talk. This was a great lesson to teach T, but we hope that dad’s jacked up car and his first-hand look at poverty also show him reasons why we make the choice to manage our money wise in the first place.
Maybe 2011 is the year you take control of your finances and say good-bye to debt. For our family, 2011 is the year that we, as a family unit, focus on financial responsibility. And it started by teaching an 11-year-old how to budget for a cell phone.
Today, I have an inspiring story from a blogger. Cassie paid off $10,000 in debt in 10 weeks and shows how you can make this a reality too. Enjoy!
In September of 2015, my wife and I officially tied the knot and, as perfect as it all was, when we returned to our home after our honeymoon we had to take a serious look at our finances. What we found shocked us.
We had known from the get-go that we both had student debt. We both attended a private, Christian college where we met and we both continued on to receive our master’s degrees. While we knew we had student debt, we had always assumed that we would simply pay the minimum until it was gone and that would be that.
What did we find when we did the math? It turns out that my wife and I owe a grand total of almost $200,000 in debt (OUCH!). Even worse? The minimum payments don’t even begin to cover the interest which means that no matter how many payments we make, we will never escape from this debt’s grasp.
Unless…
One of my favorite Dr. Seuss quotes comes from the Lorax, “Unless someone like you cares a whole awful lot, nothing is going to get better. It’s not.”
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Now, I know that this quote is referring to saving the world, but I think it’s applicable to paying off debt too. Debt can be all-consuming and debilitating, but unless you care about fixing it, it’s not going to get any better.
The thing with debt is that unless you truly work toward eliminating the problem, the problem is not going to go away. It’s certainly not an easy-fix sort of thing. Unless you truly care about getting the weight of debt off your shoulders, you’ll be trapped.
My wife and I do care about paying off our debt because we realize how much it is holding us back – we are unable to afford a house, put money into retirement, or start a family.
That’s why we made the decision to begin aggressively paying off our debt. Do you know what happened when we made that decision? We began crushing the debt that had been, only recently, crushing us.
In our first ten weeks of debt repayment, we paid off a whopping total of almost $10,000! How did we do it? Well, it’s simple: create a budget and a plan, develop a side income, and learn how to live frugally.
Related tip: Check your credit score with Credit Sesame for free!
Creating a Budget & a Plan
Developing a budget was the first step. My wife and I spent an entire month simply monitoring our spending without changing our habits. Why did we do this? Well, we wanted to see where our money was going.
What we realized is that our money was going everywhere. We were spending outrageous amounts of money for things that we didn’t even realize we were getting! Sure, some of it was important (food, certain bills, etc.), but there was so much that was unnecessary. The couple of dollars here and there for snacks and beverages (when we have these at home), the fast food or restaurants in place of dinner at home, or the subscriptions that we had forgotten we had that were still charging us monthly.
Once we realized that our money was everywhere, we knew we needed to put it into place. We created an excel document to organize our income, budgets, and debts (I love organizing things). We determined what we needed to keep to survive, what the minimum payments for our debt were, and other costs we absolutely have to have.
We wrote it all down and made important decisions as to how much we would spend on food, how much we were willing to pay for gas, etc. This was our budget. If we followed our budget, we knew we could put a significant amount of extra cash toward our debt (which is exactly what we want to do).
The hardest part about developing a budget, though, is not actually the planning, but the sticking to it. The problem we have is that when we try to follow our budget with our debit cards, we somehow always end up off. This time, we knew that we had to do our budgeting right. We pulled out some business envelopes, withdrew some cash, and began using the cash envelope system for our budget.
Almost like magic we were able to stick to our budget – better than ever before. The reality is that plastic money is easy to overspend, but when you have cold, hard cash in your hands, it’s hard to not notice it leaving. When it’s gone, it’s gone.
Developing a Side Income
The second step we took toward aggressively paying off our student debt was to develop a source of income on the side. For me, that meant blogging. I worked as hard as I could to develop a blog that focused on my goals, that inspired people, and that helped people to reach their dreams of becoming financially free.
My wife and I both work with a caterer as we are able in order to earn a little extra money. Each event lasts around six-seven hours and pays us each $100, but we can only score around one to three events per month. Jobs such as dog walking, house / babysitting, and even renting out space are great ways to make a few extra bucks within your community.
We also have started freelancing and taking up positions in the virtual assistant world. My wife has started working longer hours and taking “on-call” shifts. We sell items from our home that we no longer need and we utilize companies that offer legitimate ways to make money online. I test them out and share them on my blog for my readers to see and utilize.
Basically, we are doing whatever it takes to earn an extra income and then ensuring that the entirety of that income goes straight toward our debt repayment goals.
Related tip: You can answer surveys and make extra money! The companies I recommend include: American Consumer Opinion, Swagbucks, Survey Junkie, Pinecone Research, Prize Rebel, and Harris Poll Online. They’re free to join and free to use! You get paid to answer surveys and to test products. It’s best to sign up for as many as you can as that way you can receive the most surveys and make the most money.
Learning How to Live Frugally
Earning an extra income can only get you so far if your spending is too high. Therefore, we also spent a lot of time learning how to live frugally and sharing it on the blog. We are learning new ways each and every day to reduce our spending and live our lives to the fullest on a frugal budget.
Some of our favorites in the kitchen include baking our own bread (which saves us over $250), making our own pasta (which saves us over $100), growing our own vegetables (which saves us hundreds), and learning how to can (which saves us tons)! While each of these individually may not seem like a lot, when added together the savings can be incredible.
The frugal living tips don’t have to end in the kitchen, though. My wife and I are learning great ways to save thousands per month by cutting the cord on cable and other subscriptions, reducing our cell phone bill, and even finding new ways to entertain ourselves that don’t cost money.
As Dave Ramsey so eloquently puts it: “Live like no one else, so later on you can live like no one else.”
Living a frugal lifestyle means making cleaning supplies and hygiene products instead of buying them, making food from scratch instead of eating out, and playing board games instead of going to the clubs. It’s a lot of cutting now, but by living like we are broke, we are putting money toward debt so that later we can live the way we want to live.
How We Paid Off Almost $10,000 in Debt in 10 Weeks
Ever since we started paying off our debt aggressively, we have been competing against ourselves. When we paid off $3,000 in one month, we knew that we could do better the next month and so we did.
It took ten weeks before we had paid off almost $10,000, but the next ten weeks will be even better, we can assure you of that. How? Because we are working as hard as we can to budget, to be frugal, and to earn extra money – no matter what it takes.
The ultimate goal here is to pay off our debt as quickly as possible and that’s exactly what we are doing. We are not putting a date on our debt repayment because we don’t want to limit ourselves to that date. We want to work to surpass any dates that could have been put down and by sticking to our budget, earning side incomes, and living frugally, we can do it.
Author bio: Cassie Jahn is the author of a DIY blog devoted to living life to the fullest on a frugal budget. DIY Jahn began to help Cassie to stick to her plan to aggressively pay off her student loans, in hopes to inspire others to do the same.
How much debt do you have? Are you trying to eliminate it?
If you are new to Making Sense of Cents, I am all about finding ways to make and save more money. Here are some of my favorite sites and products that may help you out:
Find ways to make extra money – Here are over 75 different ways to make extra money.
Cut your TV bill. Cut your cable, satellite, etc. Even go as far to go without Netflix or Hulu as well. Buy a digital antenna (this is the one we have) and enjoy free TV for life.
Start a blog. Blogging is how I make a living and just a few years ago I never thought it would be possible. I earn over $100,000 a month online through my blog and you can read more about this in my monthly online income reports. You can create your own blog here with my easy-to-use tutorial. You can start your blog for as low as $2.75 per month plus you get a free domain if you sign-up through my tutorial. Also, I have a free How To Start A Blog email course that I recommend signing up for.
You should know your credit score – Check your credit score with Credit Sesame for free!
Answer surveys. Survey companies I recommend include Swagbucks, Survey Junkie, American Consumer Opinion, Pinecone Research, Opinion Outpost, Prize Rebel, and Harris Poll Online. They’re free to join and free to use! You get paid to answer surveys and to test products. It’s best to sign up for as many as you can as that way you can receive the most surveys and make the most money.
You can save money and get cash back at the grocery store. Read my review and learn how to here.
Sign up for a website like Ebates where you can earn CASH BACK for just spending like how you normally would online. The service is free too! Plus, when you sign up through my link, you also receive a free $10 cash back too!
Save money on food. I recently joined $5 Meal Plan in order to help me eat at home more and cut my food spending. It’s only $5 a month and you get meal plans sent straight to you along with the exact shopping list you need in order to create the meals. Each meal costs around $2 per person or less. This allows you to save time because you won’t have to meal plan anymore, and it will save you money as well!
I highly recommend Credible for student loan refinancing. You can lower the interest rate on your student loans significantly by using Credible which may help you shave thousands off your student loan bill over time.
Try InboxDollars. InboxDollars is an online rewards website I recommend. You can earn cash by taking surveys, playing games, shopping online, searching the web, redeeming grocery coupons, and more. Also, by signing up through my link, you will receive $5.00 for free just for signing up!
Alyssa Grant is a Processing Coordinator at our West Hartford, CT branch who recently passed her NMLS Loan Officer exam. She’ll soon be working as a licensed Mortgage Banker for Total Mortgage in West Hartford.
What motivates you to wake up and go to work? I am motivated by success and getting to learn and work with amazing people and clients everyday.
What would you do for a career if you weren’t doing this? If I didn’t have a career in the mortgage industry, I would probably be in law school right now.
What do you enjoy doing in your free time? I enjoy working out and doing any outdoor activity involving warm weather and the beach
If you could have any superpower what would it be and why? If I had a superpower it would be teleportation because I love traveling and it would save enormous amounts of time
What’s your favorite food? My favorite food is any kind of seafood; salmon or sushi specifically
What are 2-3 fun facts about you? I was an athlete in college and I have a family house in Italy!
If you could learn anything what would it be and why? It would be to be fluent in Italian so I can communicate with more of my distant family If you won the lottery, what’s the first thing you would do? If I won the lottery the first thing I would do is invest into real estate by the beach If someone was going to visit your hometown, what is one local spot you’d suggest they visit and why? If someone was visiting my hometown I’d have them visit Bella’s Pizza – they make the best pizza I’ve ever had
What’s your favorite thing about working at Total Mortgage? My favorite thing about working for Total is the tight knit community and embrace for learning in order to achieve success – especially with me being one of the youngest in the company
Welcome to the charming city of Lexington, Kentucky, where bluegrass landscapes, rich history, and equestrian traditions create an enchanting tapestry. Nestled in the heart of the Bluegrass State, Lexington is a city that beautifully blends small-town warmth with urban sophistication. In this Redfin article, we invite you to test your knowledge and explore 9 fun facts about Lexington. Whether you own a house in Lexington, are considering renting an apartment in the city, or are simply curious about its unique character, you’re in for a treat. So, saddle up and join us on a journey through Lexington to discover the hidden treasures that make this city truly special.
1. Lexington, KY, is the Horse Capital of the World
When it comes to equestrian culture and thoroughbred racing, Lexington takes the cake. Known as the Horse Capital of the World, this charming city in the heart of Kentucky boasts a rich equine heritage that stretches back centuries. Lexington’s rolling bluegrass pastures and fertile soil provide the ideal conditions for breeding and training world-class horses. The city is home to renowned horse farms, including the historic Calumet Farm, where legendary racehorses like Citation and Secretariat were bred. Visitors to Lexington can experience the thrill of horse racing at the famous Keeneland Race Course or explore the Kentucky Horse Park, a sprawling showcase of the state’s equine legacy.
2. Lexington played a significant role in the creation of bourbon
If you’re a fan of the classic American spirit, Lexington’s Distillery District is a must-visit destination. This vibrant neighborhood was once home to multiple bourbon distilleries that played a pivotal role in shaping Kentucky’s bourbon industry. Today, the Distillery District has been revitalized into a hub of art, culture, and, of course, bourbon. As you wander through the district’s charming streets, you’ll find craft breweries, trendy restaurants, art galleries, and even a bourbon distillery. Sample some of Kentucky’s finest bourbons, attend a whiskey tasting, or simply soak up the historic atmosphere that pays homage to the city’s spirited past.
3. Lexington is home to the University of Kentucky, a basketball powerhouse.
When it comes to college basketball, few teams capture the hearts of fans like the University of Kentucky Wildcats. Lexington takes immense pride in its beloved Wildcats, who have a storied history of success on the court. The university’s basketball program boasts multiple national championships and a legion of dedicated fans. On game days, the city comes alive as Wildcats supporters clad in blue and white fill the streets, ready to cheer their team to victory. The passion for basketball runs deep in Lexington, and attending a game at the legendary Rupp Arena is an experience that immerses you in the electric energy of the sport.
4. Lexington’s vibrant culinary scene will tantalize your taste buds
Prepare to embark on a gastronomic adventure in Lexington, where an exciting array of culinary delights awaits. The city’s burgeoning food scene features a mix of Southern comfort classics, farm-to-table fare, and innovative culinary creations. From down-home barbecue joints and cozy diners to upscale restaurants helmed by acclaimed chefs, Lexington offers a diverse range of dining experiences to suit every palate. Don’t miss the opportunity to savor some authentic Kentucky cuisine, such as a plate of hot and crispy fried chicken served with a side of creamy grits.
5. Lexington is known as the “Athens of the West”
With its prestigious educational institutions, Lexington has earned the nickname “Athens of the West.” The city is home to the University of Kentucky, which has a long-standing tradition of academic excellence and is recognized as a leading research institution. Additionally, Lexington boasts other esteemed colleges and universities, including Transylvania University, which is one of the oldest universities in the United States. The city’s commitment to education and intellectual growth has shaped its vibrant intellectual and cultural atmosphere, making it a hub for learning and innovation.
6. Lexington has a thriving craft beer scene
If you’re a beer lover, you’re in for a treat in Lexington. The city’s craft beer scene has been flourishing in recent years, with a variety of local breweries and brewpubs offering an impressive selection of unique and flavorful beers. From hoppy IPAs to rich stouts and refreshing sours, there’s something to satisfy every beer lover’s palate.
7. Lexington is home to the iconic Mary Todd Lincoln House
History buffs will be intrigued to know that Lexington is the birthplace of Mary Todd Lincoln, the wife of President Abraham Lincoln. The Mary Todd Lincoln House, located in downtown Lexington, is a beautifully restored historic home that provides a fascinating glimpse into the life of this influential First Lady. Step back in time as you tour the rooms filled with period furnishings and learn about the intriguing stories and significant events associated with Mary Todd Lincoln and her family.
8. Lexington’s Arboretum is a stunning oasis of natural beauty
Escape the hustle and bustle of the city and find serenity in the natural beauty of the Arboretum, located on the grounds of the University of Kentucky. Spanning over 100 acres, this botanical garden offers a tranquil retreat where visitors can wander through stunning displays of flowers, trees, and landscaped gardens. The Arboretum features themed gardens, including a fragrance garden, a vegetable garden, and a children’s garden, making it a delightful place for nature lovers of all ages to explore and appreciate.
9. Lexington hosts the renowned Festival of the Bluegrass
Every summer, bluegrass music enthusiasts flock to Lexington to attend the Festival of the Bluegrass, one of the oldest and most prestigious bluegrass music festivals in the country. Held at the Kentucky Horse Park, this multi-day event features performances by some of the biggest names in bluegrass music, as well as up-and-coming artists. The festival creates a vibrant atmosphere of toe-tapping tunes, jam sessions, and a celebration of this distinctly American musical genre.
Lexington, Kentucky, reveals itself as a city of endless wonders and captivating treasures. From its esteemed title as the Horse Capital of the World to being the birthplace of bourbon, each fun fact we’ve explored unveils a unique facet of this remarkable city.
Today, we stand at 156,105,000, so I think we are still in make-up mode until we reach a range acceptable to a fast economic recovery.
That’s why the jobs data has beaten expectations 14 months in a row. What the U.S. has that other countries don’t is a massive young workforce. While population growth is slowing here, we have the demographic muscle that other countries don’t have — if we didn’t have that, our economic discussion would be different.
Now let’s look at the labor market on all fronts from the data we got this week to get a comprehensive view of the labor market today. On Friday the BLS reported job growth came in at 339,000, with positive revisions, while the unemployment rate went higher, as there was a drop in self-employed workers.
From BLS: Total nonfarm payroll employment increased by 339,000 in May, and the unemployment rate rose by 0.3 percentage point to 3.7 percent, the U.S. Bureau of Labor Statistics reported today. Job gains occurred in professional and business services, government, health care, construction, transportation and warehousing, and social assistance.
Hours worked have fallen in the last few months, and wage growth is slowing. The fear of 1970s-style inflation was that wages could grow out of control in a tight labor market. In theory, 2022 and 2023 are tight labor markets and wage growth is slowing down. This trend should continue for the next 12 months as well.
Here is a breakdown of that data for those aged 25 and older:
Less than a high school diploma: 5.7% (2 months ago, 4.8%)
High school graduate and no college: 3.9%
Some college or associate degree: 3.2%
Bachelor’s degree or higher: 2.1%.
The noticeable data line here is that the unemployment rate for those without a high school education is up almost 1% from two months ago.
Here is the breakdown of the jobs created this month, another big month for the government, which typically doesn’t continue at this pace. Construction labor has held up very well, even though housing permits have been falling for some time. The backlog from COVID-19 has been a jobs program for the U.S. as we are still slowly growing the housing completion data.
So the BLS jobs report is still pushing along, while wage growth is slowing down. Jobs Friday is one piece of the labor pie — we have two other data lines that we always need to keep an eye on to know the health of the labor market: job openings and jobless claims.
As the only person on Earth who talked about job openings data getting to 10 million in this recovery, I am surprised that job openings data is still around that mark. But that is off the recent highs of 12 million.
At this point of the economic expansion, I am putting more weight on jobless claims data than job openings (JOLTS). For me, the Fed doesn’t pivot, or the 10-year yield doesn’t break under 3.21%, until jobless claims break over 323,000 on the four-week moving average, and that isn’t happening either.
As we can see below, the Gandalf line in the sand has held up the entire year, even though it was tested many times.
As we can see below, the jobless claims four-week moving average is still far from breaking over 323,000. I chose that number using many different variables as I think when we crack about that level, it will be noticeable to everyone — even the Fed — that the labor market has broken.
From the St. Louis Fed: Initial claims for unemployment insurance benefits increased by 2,000 in the week ended May 27, to 232,000. The four-week moving average declined, to 229,500.
It’s important to understand the labor dynamics of this economic expansion. We had such a shock in the economy with COVID-19 and a strong labor market recovery that the make-up labor demand, which doesn’t get talked about much, is a significant reason we still see healthy numbers.
Also, it’s essential to understand the demographic difference now and what we had to deal with after 2008. The Baby Boomers are leaving the labor market, and every month that happens, they need to be replaced if demand is growing. This is why having a healthy number of younger workers not only helps with that but also provides replacement consumers, as those who leave the labor market tend to consume a bit differently than younger workers.
At this stage of the economic cycle jobless claims is the data line that matters most. Once jobless claims break above 323,000, then and only then I believe we can talk about a Fed pivot — first in their language and then possibly with rate cuts.
The Federal Reserve is scared to death of the 1970s inflation, and they genuinely believe that breaking the labor market is the best way to prevent that type of inflation from happening. As a country, we are fighting against a group of people stuck in the wrong decade with their economic mindset on inflation.
National mortgage rates were mostly lower compared to a week ago, according to data compiled by Bankrate. Rates for 30-year fixed, 15-year fixed and jumbo loans moved lower, while rates for adjustable rate mortgages rose.
The Federal Reserve has raised rates 10 times in a row, most recently at its May 3 meeting. Rates now are at a 15-year high, but the consensus is that inflation is finally cooling and the central bank might halt raising rates.
”Mortgage rates have settled into a new normal of around 6.5 percent on a 30-year fixed-rate loan,” says Lisa Sturtevant, chief economist at Bright MLS, a large multiple listing service in the Middle Atlantic region. ”With growing recession risks, we could see mortgage rates dip lower, but we will not be returning to the 3 percent level seen during the height of the pandemic.”
Rates as of June 5, 2023.
These rates are marketplace averages based on the assumptions here. Actual rates listed across the site may vary. This story has been reviewed by Suzanne De Vita. All rate data accurate as of Monday, June 5th, 2023 at 7:30 a.m.
>>See historical mortgage interest rate movements
You can save thousands of dollars over the life of your mortgage by getting at least three rate quotes. Comparing mortgage offers from multiple lenders is always a smart move, but shopping around grew especially critical during the interest rate run-up of 2022, according to research by mortgage giant Freddie Mac. It found the payoff for bargain-huntng borrowers doubled last year.
“All too often, some homeowners take the path of least resistance when seeking a mortgage, in part because the process of buying a home can be stressful, complicated and time-consuming,” says Mark Hamrick, senior economic analyst for Bankrate. “But when we’re talking about the potential of saving a lot of money, seeking the best deal on a mortgage has an excellent return on investment. Why leave that money on the table when all it takes is a bit more effort to shop around for the best rate, or lowest cost, on a mortgage?”
Mortgage rates for home purchase
30-year mortgage falls, -0.20%
The average rate you’ll pay for a 30-year fixed mortgage is 6.99 percent, down 20 basis points since the same time last week. A month ago, the average rate on a 30-year fixed mortgage was lower, at 6.87 percent.
At the current average rate, you’ll pay $664.63 per month in principal and interest for every $100k you borrow. That’s lower by $13.48 than it would have been last week.
The 30-year mortgage is the most popular option for borrowers. It has a number of advantages. Among them:
Lower monthly payment. Compared to a shorter-term mortgage, such as 15 years, the 30-year mortgage offers more affordable monthly payments spread over time.
Stability. With a 30-year mortgage, you lock in a consistent principal and interest payment. Because of the predictability, you can plan your housing expenses for the long term. Remember: Your monthly housing payment can change if your homeowners insurance and property taxes go up or, less likely, down.
Buying power. With lower payments, you can qualify for a larger loan amount and a more expensive home.
Flexibility. Lower monthly payments can free up some of your monthly budget for other goals, like building an emergency fund, contributing to retirement or college tuition, or saving for home repairs and maintenance.
Strategic use of debt. Some argue that Americans focus too much on paying down their mortgages rather than adding to their retirement accounts. A 30-year fixed mortgage with a smaller monthly payment can allow you to save more for retirement.
15-year mortgage moves lower,-0.24%
The average rate you’ll pay for a 15-year fixed mortgage is 6.37 percent, down 24 basis points since the same time last week.
Monthly payments on a 15-year fixed mortgage at that rate will cost around $864 per $100k borrowed. Yes, that payment is much bigger than it would be on a 30-year mortgage, but it comes with some big advantages: You’ll come out several thousand dollars ahead over the life of the loan in total interest paid and build equity much more quickly.
5/1 ARM rate moves upward, +0.02%
The average rate on a 5/1 adjustable rate mortgage is 6.02 percent, climbing 2 basis points over the last week.
Adjustable-rate mortgages, or ARMs, are mortgage terms that come with a floating interest rate. In other words, the interest rate can change periodically throughout the life of the loan, unlike fixed-rate loans. These loan types are best for people who expect to refinance or sell before the first or second adjustment. Rates could be substantially higher when the loan first adjusts, and thereafter.
While borrowers shunned ARMs during the pandemic days of super-low rates, this type of loan has made a comeback as mortgage rates have risen.
Monthly payments on a 5/1 ARM at 6.02 percent would cost about $601 for each $100,000 borrowed over the initial five years, but could ratchet higher by hundreds of dollars afterward, depending on the loan’s terms.
Jumbo mortgage declines, -0.22%
The average rate you’ll pay for a jumbo mortgage is 6.98 percent, a decrease of 22 basis points over the last week. This time a month ago, the average rate for jumbo mortgages was lesser, at 6.94 percent.
At today’s average jumbo rate, you’ll pay $663.96 per month in principal and interest for every $100,000 you borrow. Compared with last week, that’s $14.83 lower.
Rate review: How interest rates have shifted over the past week
30-year fixed mortgage rate: 6.99%, down from 7.19% last week, -0.20
15-year fixed mortgage rate: 6.37%, down from 6.61% last week, -0.24
5/1 ARM mortgage rate: 6.02%, up from 6.00% last week, +0.02
Jumbo mortgage rate: 6.98%, down from 7.20% last week, -0.22
Refinance rates
Current 30 year mortgage refinance rate trends down, –0.15%
The average 30-year fixed-refinance rate is 7.10 percent, down 15 basis points from a week ago. A month ago, the average rate on a 30-year fixed refinance was lower, at 7.01 percent.
At the current average rate, you’ll pay $672.03 per month in principal and interest for every $100,000 you borrow. Compared with last week, that’s $10.15 lower.
Where are mortgage rates headed?
The days of sub-3 percent mortgage interest on the 30-year fixed are behind us, and rates have so far risen beyond 7 percent in 2022.
“Low interest rates were the medicine for economic recovery following the financial crisis, but it was a slow recovery so rates never went up very far,” says McBride. “The rebound in the economy, and especially inflation, in the late pandemic stages has been very pronounced, and we now have a backdrop of mortgage rates rising at the fastest pace in decades.”
Comparing mortgage options
The 30-year fixed-rate mortgage is the most popular option for homeowners, and this type of loan has a number of advantages, including:
Lower monthly payment: Compared to a shorter term, such as 15 years, the 30-year mortgage offers lower payments spread over time.
Stability: With a 30-year mortgage, you lock in a consistent principal and interest payment. Because of the predictability, you can plan your housing expenses for the long term. Remember: Your monthly housing payment can change if your homeowners insurance and property taxes go up or, less likely, down.
Buying power: With lower payments, you can qualify for a larger loan amount and a more expensive home.
Flexibility: Lower monthly payments can free up some of your monthly budget for other goals, like saving for emergencies, retirement, college tuition or home repairs and maintenance.
Strategic use of debt: Some argue that Americans focus too much on paying down their mortgages rather than adding to their retirement accounts. A 30-year fixed mortgage with a smaller monthly payment can allow you to save more for retirement.
That said, shorter-term loans have gained popularity as rates have been historically low. Although they have higher monthly payments compared to 30-year mortgages, there are some big benefits if you can afford the upfront costs. Shorter-term loans can help you achieve:
Greatly reduced interest costs: Because you pay off the loan faster, you’ll be able to pay less interest overall.
Lower interest rate: On top of less time for that interest to compound, most lenders price shorter-term mortgages with lower rates.
Build equity faster: The faster you pay off your mortgage, the faster you’ll own value in your home outright. That’s especially handy if you want to borrow against your property to fund other spending.
Debt-free sooner: A shorter-term mortgage means you’ll own your house free and clear sooner than you would with a longer-term loan.
What are current mortgage rates?
Mortgage rates have been volatile because of the COVID-19 pandemic. Generally, though, rates have been low. Mortgage rates are rising and falling from week to week, as lenders are inundated with forbearance and refinance requests. In general, however, rates are consistently below 4 percent and even dipping below 3%. This is an especially good time for people with good to excellent credit to lock in a low rate for a purchase loan. However, lenders are also raising credit standards for borrowers and demanding higher down payments as they try to dampen their risks.