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Apache is functioning normally

September 27, 2023 by Brett Tams
Apache is functioning normally

The Federal Reserve ended its long streak of interest rate hikes last week, but the pause may offer little reprieve to Americans squeezed by higher borrowing costs.

The decision left interest rates unchanged at a range of 5% to 5.25%, the highest level since 2001. However, policymakers also opened the door to additional rate increases this year, meaning there could be more pain for would-be homebuyers in the form of steeper mortgage rates.

“Higher rates are a positive for savers, but it also means mortgage rates may not fall all the way back to where they were in 2020 and 2021,” said Sonu Varghese, global macro strategist at Carson Group.

Mortgage rates spiked over the past year as the Fed waged an aggressive campaign to crush high inflation. In the span of just 16 months, the central bank approved 11 rate increases – the fastest pace of tightening since the 1980s.

A pedestrian passes the Federal Reserve building in Washington, D.C., on June 3, 2023.

MORTGAGE CALCULATOR: SEE HOW MUCH HIGHER RATES COULD COST YOU

While the federal funds rate is not what consumers pay directly, it affects borrowing costs for home equity lines of credit, auto loans and credit cards.

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Rates on the popular 30-year fixed mortgage are currently hovering around 7.19%, according to Freddie Mac, well above the 6.29% rate recorded one year ago and the pre-pandemic average of 3.9%. It is near the highest level in two decades.

MORTGAGE DEMAND DROPS AGAIN AS INTEREST RATES EASE SLIGHTLY

Below, you can calculate how volatile increases and decreases in rates could affect the typical cost of a monthly mortgage.

Even just a minor change in rates can affect how much would-be homebuyers pay each month.

A recent study from LendingTree compared the average monthly payments on 30-year fixed-rate mortgages in April 2022 – when the rate hovered around 3.79% – and one year later, when rates jumped to 5.25%.

It found that higher rates cost borrowers hundreds more each month and potentially add as much as $75,000 over the lifetime of the 30-year loan.

The monthly mortgage payment for a median-priced home, calculated using the current 30-year mortgage rates and a 6% down payment, is about $2,590. That is dramatically higher than just three years ago, when that same mortgage payment would cost about $1,779.

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The spike in mortgage rates comes as the Federal Reserve wages an aggressive campaign to crush high inflation, raising interest rates at the fastest pace in decades in a bid to cool the economy and tame runaway prices.

While the federal funds rate is not what consumers pay directly, it affects borrowing costs, including everything such as home equity lines of credit, auto loans and credit cards.

Even just a minor change in mortgage rates can affect how much potential homebuyers pay each month.

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“Higher mortgage rates have radically altered homebuyer purchasing power and have been a key factor in existing home sales dropping from a more than 6.5 million unit pace in early 2022 to the roughly 4 million unit pace in recent months,” said Danielle Hale, chief economist at Realtor.com. “Perhaps more importantly, higher mortgage rates continue to keep existing homeowners sidelined because they don’t want to borrow at today’s much higher rates.”

Original article source: See how much higher mortgage rates are actually costing you

Source: finance.yahoo.com

Posted in: Renting Tagged: 2, 2020, 2021, 2022, 2023, 30-year, 30-year fixed mortgage, 30-year mortgage, About, All, Auto, Auto Loans, average, Bank, Borrow, borrowers, borrowing, building, business, calculator, Consumers, cost, costs, Credit, credit cards, Danielle Hale, decades, decision, down payment, Economy, equity, existing, Existing home sales, Fall, fed, Federal funds rate, Federal Reserve, Finance, Financial Wize, FinancialWize, fixed, Freddie Mac, funds, home, home equity, Home Sales, homebuyer, Homebuyers, homeowners, in, Inflation, interest, interest rate, interest rate hikes, interest rates, LendingTree, loan, Loans, median, More, Mortgage, mortgage calculator, Mortgage demand, mortgage payment, Mortgage Rates, Mortgages, offer, one year, Original, PACE, pandemic, payments, policymakers, Popular, potential, Prices, rate, Rate Hikes, Rates, read, realtor, Realtor.com, sales, The Economy, the fed, wages, washington, yahoo finance

Apache is functioning normally

September 27, 2023 by Brett Tams
Apache is functioning normally

Many or all of the products featured here are from our partners who compensate us. This may influence which products we write about and where and how the product appears on a page. However, this does not influence our evaluations.

The amount of money you need for a down payment depends on the overall cost of the house as well as the type of loan you’re approved for. VA and USDA loans can be as low as 0% while conventional and FHA loans range between 3%and 10%. Jumbo loans typically require a 10%down payment or more.

Buying a home is a goal for many Americans. The consumer and market data experts at Statista expect over 6 million homes will sell in 2023, which is a great sign for the housing market. If you’re one of the millions of Americans planning on buying a home, the first question you may have is, “How much do I need to put down on a house?”

Today, you’ll learn about how much you’ll need to put down before buying a home, and it may not be as much as you think. We’ll also go over how your down payment affects your offer as well as the pros and cons of making a larger down payment to help you make the right decisions before purchasing your dream home.

What Is a Down Payment?

A down payment is a certain percentage of the purchase price that you pay up front to secure a property, and the rest is paid in installments as part of a loan. Buying a home is a major purchase that can be hundreds of thousands or even millions of dollars, and if you’re like most people, you don’t have that much cash lying around. A down payment is much more realistic amount to pay up front, and it also lessens the risk of the lender by showing you’re more likely to have the ability to make your mortgage payments on time.

Do You Need to Put a 20% Down Payment on a House?

It’s a myth that you have to put down 20% when buying a home. A 2022 National Association of Realtors study found that 35% of people believe you need a 16-20% down payment to buy a home, but that’s not the case at all.

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The data collected was from 1989 to 2021, and it shows that the typical down payment was 7% for first-time homebuyers and 3.5% for those getting an FHA loan.

The study also showed that repeat buyers put down an average of 17%, and this is because, based on their experience, they know the benefits of a larger down payment.  

Although buyers don’t have to put down 20%, there are a few pros and cons to doing so:

Pros:

  • Better interest rates: A larger down payment means less risk for the lender and a smaller loan amount, so they charge less interest.
  • Lower monthly mortgage payments: The overall loan amount is lower, which also lowers the individual monthly payments.
  • The offer may be more competitive than other potential buyers: A larger down payment makes sellers feel more confident in the sale because it shows you can access more money and make the payments.

Cons:

  • It’s a lot of money you’ll no longer have access to: It’s always good to have a financial cushion in an emergency, so depleting your savings for a larger down payment may be a risk.
  • It may take longer to save for a home: The difference between a 5% and 10% down payment on a house can be tens of thousands of dollars, which can take additional years of saving.
  • You have less money for maintenance, repairs, furnishing, and appliances: Houses have many additional costs aside from the actual home.
  • You will have to take out Private Mortgage Insurance (PMI) insurance.

Minimum Down Payment Requirements Based on Type of Loan

The minimum down payment for a house can vary depending on which type of loan you’re approved for.

  • VA and USDA loans: If you’re a veteran or currently active in the military or qualify for a USDA loan, your down payment may be as low as 0%. The USDA loans are for suburban and rural home buyers and have an application process where you must meet certain requirements for the program.
  • Conventional loans: These loans include loans like HomeReady and Home Possible and can be as low as 3%. These aren’t backed by the government, but they have similar guidelines and sometimes require a minimum credit score of 620.
  • FHA loans: Federal Housing Administration loans are as low as 3.5%, but for those with bad credit, it may be 10%. To qualify for the lower down payment amount, you’ll need a credit score of 580 or higher.
  • Jumbo loans: For these larger loans that exceed FHA limits, the down payment may be as low as 10%, but lenders often require more to lessen their risk.

Five Benefits of Making a Larger Down Payment

If you know how much house you can afford and are in a good financial situation, a larger down payment is typically a better option. While 20% may not be achievable, there are still benefits to making a down payment that’s higher than the minimum.

The following are some of the benefits to a larger down payment:

  • Lower monthly payments: Your monthly payments are divided by what you owe on a home, so a larger down payment will reduce how much you spend each month.
  • Better interest rates: Interest rates are often higher when a lender is taking on more risk, so they’re lower when the lender is lending less money due to the larger down payment.
  • Lower closing costs: Lenders charge closing costs as a percentage of the total loan amount, which is less based on the big down payment.
  • Better equity: Your home’s equity comes from how much of the home you own, and you own more of a percentage of the home with a larger down payment.
  • Better chance of closing the deal: Sellers feel more confident selling to someone who can put down more cash up front.

How Much Should You Put Down on a House?

How much you put down on a home is going to be different for everybody. Not only will it depend on your personal situation and financial goals, but it will also depend on how competitive you want to be with your offer. When buying a home, there may be multiple offers, and a larger down payment can signal to sellers that you’re able to follow through with closing the deal.

A larger down payment also means less money for other financial goals. In that same study from the National Association of Realtors, they found the second most common source of down payments comes from loans. If you’re already in debt when looking to buy a house, you may want to put down a lower down payment.

Here are some other considerations that may help you decide how much to put down on a house:

  • How much you should keep in savings: Life is unpredictable, which is why it’s always good to have an emergency savings fund. When deciding on a down payment, it’s helpful to ensure you still have some savings to fall back on in case of emergencies.
  • Other costs as a homeowner: Some first-time home buyers forget that they’ll have more expenses when owning a home than renting. You’ll be responsible for all of the maintenance and repairs.
  • Closing costs: The closing costs of a home are a percentage of the loan, so when planning out the down payment, keep this fee in mind.
  • Down payment assistance options: There are various programs and incentives for home buyers, so you may be able to find down payment assistance options. Also, remember that different lenders may have different rates, so shopping around may help you find a better deal.

FAQ

There are additional nuances to down payments on a home, so we’ve answered some common questions below.

Is It Worth Putting 20% Down on a House?

If you’re in a good financial position and can afford a 20% down payment, there are many benefits to putting that amount down. It can help lower your interest rates and monthly payments and may even help you close the deal with the seller.

Is $10,000 Enough to Put Down on a House?

A $10,000 down payment might be enough for a home. According to the National Association of Realtors, down payments are based on a percentage of a home with an average down payment of 7-17%.

What Is the Normal Amount to Put Down on a House?

The normal down payment amount for a house varies depending on the house’s price and loan type.

How Much Do You Need to Put Down on a 400K House?

The most common type of loan is a conventional loan, and you may put 5% down for a 30-year fixed-rate mortgage. For a $400,000 home, the down payment would be $20,000.

Can You Buy a House Without a Down Payment?

Yes. There are government-backed loans like VA loans or USDA loans that don’t require a down payment if you qualify.

How Your Credit Affects Your Ability to Buy a House

In addition to the down payment for a home, your credit score plays a big role in the overall cost of a home as well as the type of loan you can qualify for. For example, the FHA has credit requirements, and you need a score of 580 to qualify for a 3.5% down payment.

If you’re unsure where you stand with your credit, you can sign up and get your free credit report card right at Credit.com. We also provide additional services through our ExtraCredit® program that can help you monitor your credit score in addition to other features as you get ready to buy a home.

Source: credit.com

Posted in: Refinance Tagged: 2021, 2022, 2023, 3%, 30-year, About, active, actual, Administration, All, Amount Of Money, appliances, average, bad credit, before, Benefits, big, Buy, buy a home, buy a house, buyers, Buying, Buying a Home, cash, chance, closing, closing costs, common, cons, conventional loan, Conventional Loans, cost, costs, Credit, Credit Report, credit score, data, Debt, decisions, down payment, Down Payment Assistance, down payment on a house, Down payments, dream, dream home, Emergency, emergency savings, equity, expenses, experience, experts, ExtraCredit, Fall, faq, Featured, Features, FHA, FHA loan, FHA loans, financial, Financial Goals, Financial Wize, FinancialWize, first, First-time Homebuyers, fixed, Free, free credit report, front, fund, goal, goals, good, government, great, helpful, home, home buyers, home loans, Homebuyers, Homeowner, homes, house, Housing, Housing market, how much down payment, in, Insurance, interest, interest rates, Jumbo loans, Learn, lender, lenders, lending, lessen, Life, loan, Loans, low, LOWER, maintenance, Make, making, market, military, Misconceptions, money, More, more money, Mortgage, Mortgage Insurance, mortgage payments, Mortgages, multiple offers, National Association of Realtors, offer, offers, or, Other, payments, Personal, Planning, PMI, potential, price, private mortgage insurance, products, program, programs, property, pros, Pros and Cons, Purchase, questions, rate, Rates, ready, Realtors, renting, Repairs, report, right, risk, rural, sale, save, Saving, savings, score, second, Sell, seller, sellers, selling, shopping, The Pros, time, US, USDA, usda loans, VA, VA loans, will

Apache is functioning normally

September 27, 2023 by Brett Tams
Apache is functioning normally

Editor’s Note: For the latest developments regarding federal student loan debt repayment, check out our student debt guide.

Student loan debt is at an all-time high, with more students graduating with debt than ever before. Consider this: Almost 44 million borrowers have federal student loan debt and they owe, on average, $37,338. As recent graduates begin their careers, it can be overwhelming to figure out how to make monthly student loan payments.

Ignoring your payments may seem like an easy way out, but student loan default can have extreme consequences. If you’re struggling with student loan payments or are already in default, there are ways to recover. For instance, you could consolidate defaulted student loans. Or you could refinance them. This guide will help you figure out your best option.

What Is Student Loan Default?

If your student loan is in default, it means you have failed to make payments on your student loans for several months in a row. However, there are a few steps that occur before defaulting on student loans.

Federal student loans are considered delinquent once you miss a student loan payment. After 90 days of delinquency, your loan servicer can report the missed payments to the three major credit bureaus. Generally, after 270 days of nonpayment, your loan will go into default.

If you have private student loans, they can go into default even sooner. Typically, after you miss three payments or 120 days, your private student loans go into default. Different lenders have different terms when it comes to default, however, so be sure to check with yours to get the specifics.

How Common Is Defaulting on Student Loans?

Defaulting on student loans is fairly common. The latest data from EducationData.org finds that one in 10 student loan borrowers has defaulted on a loan. In fact, roughly 4 million student loans go into default every year, and about 7% of loans are in default at any given time. As of 2021, the median loan balance among delinquent and defaulted borrowers was $15,307.

What Are the Consequences of Student Loan Default?

Defaulting on your student loans can have some steep consequences. For starters, the entire balance of your student loans could become due in full.

If you default on your student loans, your lender may eventually turn your debt over to a collection agency who will usually start calling, emailing, and even texting you to try and collect on your debt. You may even have to pay collection fees on top of everything else.

If you default, you may lose eligibility for programs that could help you manage your debt, such as deferment, forbearance, or Public Service Loan Forgiveness.

Once your student loans are in default, your loan servicer or collection agency will report your default to the three major credit bureaus, which will negatively impact your credit score.

And if your servicer can’t collect the money you owe on your federal student loans, they can ask the federal government to garnish a portion of your wages or your tax refund.
💡 Quick Tip: Get flexible terms and competitive rates when you refinance your student loan with SoFi.

How Can You Recover From Student Loan Default?

If you failed to make payments on your student loans and they’ve gone into default, you don’t have to let it ruin your financial future. Here are some steps you can take to get back on track.

Loan Rehabilitation

One option for getting out of student loan default is student loan rehabilitation. To rehabilitate your loan, you work with your loan servicer and agree in writing to make nine reasonable and affordable monthly payments over a period of 10 months.

In order to rehabilitate a Direct Loan or FFEL program loan, your monthly payments must be no more than 20 days late. Your loan servicer will determine the new monthly payment, which is 15% of your discretionary income.

When you have successfully rehabilitated your loan, the default may be wiped from your credit history. Note that any late payments reported to the credit bureaus before the loan went into default will remain on your credit reports.

Private student loans are not eligible for rehabilitation.

Repaying Your Loan in Full

Another option to get out from under the shadow of student loan default is to repay your loans in full. Of course, if you had the funds to do so, you probably wouldn’t have defaulted in the first place. That said, you could look into ways to cover the balance due, such as borrowing from a family member or close friend.

Options for Private Student Loans

If you have private student loans that are in default, you can contact your lender and see what possibilities are available. Some lenders may have hardship options similar to the federal programs. As mentioned, the time it will take for your unpaid private loan to go into default depends on the lender — but the timeframe could be relatively short, even just 120 days.

However, if you’ve only recently missed a payment, you can start making payments again (and repay the missed payment) to try to prevent your loan from going into default.

Is Refinancing an Option for Defaulted Student Loans?

If your student loans are currently in default, refinancing your loans can be difficult. When you refinance your student loans, you take out a new loan with a private lender to pay off the existing loans. When you apply for a refinancing loan, lenders will use your credit score and financial history, among a few other factors, to determine if you qualify.

If your loan is already in default, your credit score has likely decreased significantly and will likely impact your ability to get approved for a new loan. If you have a family member or friend who is willing to cosign the loan, however, you may be able to refinance your student loans that way.

Another possibility for refinancing your student loans would be to rehabilitate your loans first. A lot of lenders might turn you down for having a defaulted loan on your credit history, but others might be willing to look past that and onto your education and income potential to approve you for a loan.

Can you Consolidate Defaulted Student Loans?

Another way to recover from student loan default is to consolidate your student loans in default. If you have federal loans, you can pursue defaulted student loan consolidation with the Direct Consolidation Loan program. This program allows you to combine one or more federal loans into a new consolidation loan.

To be eligible, you must either make three full, on-time, and consecutive payments on the defaulted loan or agree to make payments on an income-driven repayment plan.

Private student loans aren’t eligible for Direct Consolidation Loans. However, you can consolidate these loans with a private lender by refinancing.

Tips for Consolidating Defaulted Student Loans

Wondering how to consolidate defaulted student loans? To consolidate federal student loans, first gather all the documents you need. This includes your personal information such as your name, address, email, Social Security number, and FSA ID; financial information such as your income; and details about your loans, including amounts, account numbers, and loan servicers.

Next, go to studentaid.gov to fill out the Direct Consolidation Loan application. You’ll need your FSA ID to log in. Specify the loans you want to consolidate.

Then, choose one of the income-driven repayment plans if that’s the option you prefer. Review the plans in advance to determine which one is the best option for you.

Filling out the application typically takes less than 30 minutes.

Pros and Cons of Student Loan Consolidation

Choosing to consolidate defaulted student loans has advantages and disadvantages you’ll want to weigh before you move forward.

Advantages include:

•   One loan and one monthly bill. This means there will be less for you to keep track of.

•   Lower payments. When you consolidate, you can choose an income-driven repayment plan or to lengthen the term of your loan, which could lower your monthly payments. (Note: You may pay more interest over the life of the loan if you refinance with an extended term.)

•   Fixed interest rate. You’ll get a fixed interest rate for the life of your loans with Direct Loan Consolidation. The new rate is a weighted average of all your federal loan rates, rounded to the nearest eighth of a percent.

•   Access to forgiveness programs. With a Direct Consolidation Loan, you might be able to get access to programs you weren’t eligible for previously, such as Public Service Loan Forgiveness.

Disadvantages include:

•   Longer repayment period. You could end up repaying your loans for an extra year or two, which will cost you more overall.

•   Pay more in interest over the life of the loan. With consolidation, the outstanding interest on your loans is added to the principal balance, and interest may accrue on that higher balance.

•   Possible loss of benefits. Consolidating loans other than Direct loans could mean giving up perks you have with those loans, such as rebates or interest rate discounts.

This comparison chart of the pros and cons of student loan consolidation can be helpful as you consider the question of should you refinance or consolidate your loans.

Pros of Student Loan Consolidation Cons of Student Loan Consolidation
Simplified payments with just one bill to pay each month. Longer repayment period means paying more overall.
Monthly payments may be lower. Pay more in interest over the term of the loan.
Fixed interest rate. Could lose benefits associated with current student loans.
Possible access to certain forgiveness programs.

How to Manage Student Loans Without Going Into Default

If you’re struggling to make student loan payments but haven’t yet defaulted on your loan, taking action now could help prevent financial issues in the future. Here are some options that could help you take control of your student loan debt and avoid going into default.

Take Advantage of the Temporary Grace Period

Federal student loan payments and interest accrual has been paused since March 2022 in order to alleviate some of the financial challenges created by the coronavirus pandemic. However, the latest debt ceiling bill officially ended the payment pause, requiring interest to begin accruing again on Sept. 1. and payments to resume on October 1.

The Department of Education understands that restarting student loan payments after such a long pause will put many borrowers in a difficult financial position. So to prevent struggling borrowers from facing the harsh penalties of defaulting on their loans, there will be a 12-month ramp-up period to help borrowers adjust to repayment.

During this period, which takes place from Oct. 1, 2023 to Sept. 30, 2024, federal student loan borrowers who don’t make their payments on time and in full will not be reported to the credit bureaus, have their loans placed in default, or be referred to debt collectors.

Forbearance or Deferment

If you’re unable to make payments on your student loans due to a sudden and temporary economic change, you might consider applying for student loan deferment or forbearance. Both allow you to temporarily pause your loan payments.

If your loans are in forbearance, which is granted for 12 months at a time, you will be responsible for paying accrued interest during the forbearance period. If your loans are placed in deferment, which can last up to three years, you may not be responsible for accrued interest during the deferment period, depending on the type of loan you hold.

While your loans are in deferment or forbearance, you do have the option to make interest-only payments on the loan. If you choose not to, the accrued interest on most loans will be capitalized, or added to the principal balance. You’ll then be charged interest based on the larger loan amount.

Applying for Income-Driven Repayment (IDR)

Another option to help manage your student loans is income-driven repayment. There are four income-driven repayment plans available to federal student loan borrowers. Depending on the type of plan you qualify for, your monthly payments will be anywhere from 10% to 20% of your discretionary income. (Beginning in July 2024, the new SAVE plan will adjust payments to 5% of discretionary income.)

Income-driven repayment plans also stretch out the repayment term of the loan to either 20 or 25 years, depending on the specific plan. This means that while you could pay less per month, income-driven repayment could cost you more in interest over the life of the loan. The good news is that if you have any remaining debt at the end of the term, it will be forgiven (but you may need to pay income taxes on the canceled amount).

Consolidating Your Loans

Even if you’re not in default, you can consolidate your federal loans through the Direct Loan Consolidation program. As mentioned, the new interest rate will be the weighted average of the existing loans, rounded to the nearest eighth of a percent. So you won’t lower your effective interest rate, but you’ll only have to keep track of one monthly payment.

Refinancing Your Loans

If your monthly student loan payments are difficult for you to manage, you could consider refinancing with a private lender. If you have a combination of private and federal student loans, you could refinance both types into a single, private loan.

Refinancing can give you an opportunity to qualify for a lower interest rate or lower monthly payments, and you’ll only have to worry about tracking one payment each month. You may also be able to customize your repayment term — either lengthening or shortening the term.

By lengthening the term, you could reduce your monthly payments, but you may end up spending more money in interest over the life of the loan. To see how refinancing could impact your student loans, plug your numbers into this student loan refinance calculator.

It’s important to note that if you’re thinking of taking advantage of any federal programs such as income-driven repayment or Public Service Loan Forgiveness, refinancing may not be a good idea, as you’ll lose your eligibility for these programs.

Looking to lower your monthly student loan payment? Refinancing may be one way to do it — by extending your loan term, getting a lower interest rate than what you currently have, or both. (Please note that refinancing federal loans makes them ineligible for federal forgiveness and protections. Also, lengthening your loan term may mean paying more in interest over the life of the loan.) SoFi student loan refinancing offers flexible terms that fit your budget.

With SoFi, refinancing is fast, easy, and all online. We offer competitive fixed and variable rates.

FAQ

Does consolidating student loans remove default?

No. When you consolidate your student loans, the record of the default will stay on your credit history. Another option is loan rehabilitation, which removes the default from your credit history.

Can you consolidate defaulted student loans?

Yes, you can consolidate defaulted student loans. If you have federal loans, you can consolidate them with Direct Loan Consolidation. To be eligible, you must either make three full, on-time, and consecutive payments on the defaulted loan or agree to make payments on an income-driven repayment plan. You can fill out an application at studentaid.gov. You can consolidate private student loans with a private lender.

Can you refinance student loans that are in default?

You can refinance student loans that are in default, but it may be difficult. That’s because your credit score has likely decreased, which may impact your ability to get approved for refinancing. If you have a family member or friend who is willing to cosign the loan, you may be able to refinance your student loans that way. Or, you could rehabilitate your loans first, which could help improve your odds of being approved for refinancing.


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Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

Student Loan Refinancing
If you are a federal student loan borrower you should take time now to prepare for your payments to restart, including the opportunity to refinance your student loan debt at a lower APR or to extend your term to achieve a lower monthly payment. (You may pay more interest over the life of the loan if you refinance with an extended term.) 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, such as the SAVE Plan, or extended repayment plans.

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SOSL0823020

Source: sofi.com

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Apache is functioning normally

September 27, 2023 by Brett Tams
Apache is functioning normally

Many or all of the products featured here are from our partners who compensate us. This may influence which products we write about and where and how the product appears on a page. However, this does not influence our evaluations.

A personal loan is money borrowed from a lender that can be used for almost any purpose, from debt consolidation to home improvement projects.

Most people don’t have $5,000+ sitting in their bank accounts—that’s where personal loans come in. Just like a mortgage or auto loan, personal loans allow you to cover large purchases or expenses under the terms that you’ll pay off the loan over time, typically with interest.

If you’re considering taking out a personal loan, here’s all you need to know to ensure you’re making the right money moves to fund your future investment.

What Is a Personal Loan?

A personal loan is money borrowed from a bank, credit union, or other financial institution that can be used for virtually any personal expense. Like any other installment loan, personal loan borrowers are expected to pay the money back over a set period.

The typical amount you can take out for a personal loan can range anywhere from $1,000 to $50,000, depending on several factors. Interest rates are just as variable—they can be as low as 6% and as high as 36%, depending on your unique financial situation. The current average interest rate for personal loans is 11.04% as of May 2023.

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Why Would I Need a Personal Loan?

If you’re planning on making a big purchase, getting a better handle on your debt, or have run into some unexpected expenses, applying for a personal loan can help cover the costs. People usually take out personal loans for:

  • Debt consolidation
  • Unexpected medical expenses
  • Home remodeling
  • Emergency expenses
  • Vehicle repairs or financing
  • Moving expenses
  • Vacations
  • Wedding expenses

While you could technically use this type of loan for, well, anything, there are a few things you should avoid using a personal loan for, like:

  • College tuition: It’d make more financial sense to use a federal student loan vs. a personal loan to pay for college tuition. Federal student loans typically come with lower interest rates, plus most don’t require a credit check. You may even qualify for a subsidized loan or an income-driven repayment plan.
  • Home down payment: Most mortgage lenders won’t accept a personal loan as a down payment, and even if they did, the increase a personal loan could cause to your debt-to-income ratio might disqualify you from the loan anyway.
  • Starting a business: Taking out a personal loan to open a business won’t help you build business credit since the loan is in your name. Instead, consider applying for a business credit card to start building credit so you can apply for a business loan down the road.
  • Everyday expenses: If you’re strapped for cash now, taking out a personal loan to cover bills and other living expenses may just create a bigger problem in the long run since you’ll have to repay the loan amount plus interest. Consider re-budgeting or finding ways to increase your income instead.

Personal Loans vs. Lines of Credit vs. Payday Loans

Personal loans, personal lines of credit, and payday loans are all money-borrowing options that can help you manage your finances or cover a significant expense.  However, they’re typically used for different purposes.

  • Personal loans vs. lines of credit: Personal loans are typically used to cover large purchases or expenses since all the money is available upfront. On the other hand, personal lines of credit allow the borrower to use the credit available as needed and pay it off on their own timeline, so they’re more ideal for smaller everyday purchases.
  • Personal loans vs. payday loans: Whereas personal loans allow you to borrow a large sum of money with a loan term typically spanning several years, payday loans offer borrowers a small amount of cash—typically around $500 or less—at a higher interest rate that has to be repaid within 2-4 weeks. Payday loans are best if you have an urgent expense and know you can repay the loan within the term offered.

Definition

What it’s best for

Personal loan

Supplies the borrower with a large sum of money upfront that must be paid back in fixed monthly payments throughout the loan term

Large purchases or expenses

Personal line of credit

Lets the borrower use credit as needed and pay it back on their own timeline with a variable interest rate

Building credit on everyday purchases

Payday loan

Gives the borrower a small sum of money—around $500 or less—at a high-interest rate that usually has to be repaid within 2-4 weeks

Quick cash for urgent needs, especially if the borrower does not qualify for a traditional loan

Types of Personal Loans

Before you apply for a loan, research the type of personal loan that will best serve your unique financial needs. Your credit history, credit score, and reason for needing the loan will determine which is best for you.

Here’s a quick breakdown of the seven most common types of personal loans:

Type of personal loan

Definition

Who it’s best for

Unsecured personal loans

Do not require any sort of collateral to qualify

Borrowers with excellent credit and a steady source of income

Credit-builder loans

Allow you to take out a small sum of money to demonstrate that you’re a reliable borrower by making regular on-time payments

Borrowers with low or no credit history looking to improve their credit score

Debt consolidation loans

Typically can be borrowed at a lower interest rate than most credit cards or other bills you plan to consolidate, saving you money on interest

Borrowers with multiple debt balances or balances with high interest rates

Co-signed and joint loans

Allow a co-signer to assume responsibility for a loan if the borrower does not qualify

Borrowers who do not qualify for a traditional loan or are hoping to be approved for a lower interest rate

Fixed-rate loans

Come with an interest rate that does not change over the repayment term, so the borrower pays the same amount every month

Borrowers who plan on paying off their loan over an extended period

Variable-rate loans

Come with a fluctuating interest rate that could increase or decrease monthly payments over time, but rates are sometimes lower vs. fixed-rate loans

Borrowers who only need to borrow funds for a short period

How Do Personal Loans Work?

You have to receive a personal loan through an authorized lender, typically a bank or credit union. Here’s how the personal loan process works:

  1. You must first apply for a personal loan. The lender will decide if you qualify based on your creditworthiness, income, and the type of personal loan you’re interested in.
  2. If you qualify for a loan, your lender will usually set a loan term to determine how long you have to pay the money back. This can range anywhere from months to years, depending on the lender and your needs. A fixed or variable interest rate—the cost of taking out the loan—will also be applied to your monthly payments.
  3. If you qualify for a loan, you’ll be issued a lump sum deposited into your bank account. You’re free to do with the money as you wish, but you’re expected to make regular monthly payments until the loan is paid off.

How to Apply for a Personal Loan

Personal loans are a great tool for financing some of life’s most important—and unexpected—milestones. If you’re ready to apply for a personal loan, follow these steps:

  1. Check your credit: Your credit history will be one of the biggest determinants of whether or not you’re approved for a loan, so it’s important you know where you stand. Most lenders will want to see a “good” credit score (620) or above to ensure you can be trusted to meet your loan terms.
  2. Decide how much to borrow: You may qualify for a $50,000 loan, but before you sign on the dotted line, you need to know how much you can realistically afford to borrow. Carefully consider your current and future financial situation before jumping into any personal loan.

Pro tip: Try our loan payment calculator to easily estimate monthly payments for different personal loan options.

  1. Know your consumer rights: According to the Truth in Lending Act, lenders must disclose the APR finance charges, principal amount, and any fees and penalties associated with a loan offer. If you come across a lender that refuses to share this information, you’ll want to look for a different lender.
  2. Gather essential documents: In addition to your credit report, potential lenders may also want to see the following documents to speed up the application process.
    1. Proof of your annual income
    1. Your debt-to-income ratio
    1. Your Social Security number
    1. Recurring monthly debt (like your house payment)
    1. Employer information
    1. Your cosigners financial information (if applicable)
  1. Research loan options: Personal loan requirements and terms vary by the type of loan and lender, so you’ll want to research before applying. Details that may sway your decision include the loan amount, APR, monthly payments, loan term, secured or unsecured, and more. Ask lenders for this information in advance before applying for a personal loan.
  2. Submit your application: Once you’ve settled on a loan that meets all your requirements, fill out your application, read it carefully for typos or errors, and submit it to your potential lender. You’ll likely know whether your application was approved within a day or two whether your application was approved.

How to Qualify for a Personal Loan

Each lender is different, so minimum requirements for personal loans vary. However, if you’re hoping to qualify for a large unsecured personal loan with a competitive interest rate, here are a few general requirements most lenders will want to see:

  • A minimum credit score of 620
  • A positive and established credit history
  • A debt-to-income ratio less than 36%
  • A steady income with proof of employment

Again, these requirements vary from lender to lender. In some cases, you may qualify for a loan with no credit at all. Some lenders even prioritize things like education and work history when evaluating applicants. Inquire with potential lenders before you apply for a personal loan to better understand what you need to qualify.

Personal Loan Alternatives

If credit history, high interest rates, or substantial fees are preventing you from applying for a personal loan, there are money-borrow alternatives that may be a better fit, like:

  • Home equity loans: Home equity loans or lines of credit (HELOC) are secured by the equity a borrower has built in their home. Because this is a type of secured loan, interest rates tend to be lower compared to an unsecured personal loan. The repayment terms are also longer than most personal loans, sometimes up to 20 years.
  • Credit Cards: Credit cards allow borrowers to use credit and pay it back as they go, offering more flexibility than personal loans. Many credit cards also offer rewards like cash back or airline miles for money spent.
  • Personal lines of credit: Like credit cards, personal lines of credit allow you to borrow money and pay it back as you go. However, personal lines of credit have a set draw period—once the period is over, you won’t be able to tap your line of credit and will need to pay back your balance. Interest rates for personal lines of credit are typically lower than credit cards, so they’re ideal for large ongoing projects.
  • Retirement loan: If you’re looking for more relaxed loan requirements, you may be able to borrow from your employer-sponsored retirement plan in the form of a 401(k) loan. This is a great alternative for borrowers with less-than-stellar credit, but keep in mind that you’ll be restricted to your current retirement accounts, and you may have to repay the loan early if you leave your current job before the loan term ends, often with penalties.

FAQs

Still weighing your personal financing options? We answered some of the most frequently asked questions about personal loans to help with your decision.

Will a Personal Loan Affect Your Credit Score?

Applying for a personal loan may cause a light dip in your credit score because lenders will run a hard inquiry on your credit. While a hard inquiry shouldn’t affect your credit score too much, it’s important to narrow down your options before applying to avoid multiple hard inquiries from multiple potential lenders.

It’s also wise to wait to apply for a personal loan if you’ve just opened another line of credit, which could cause an even bigger drop in your score.

Do You Need a Down Payment for a Personal Loan?

You do not need a down payment for a personal loan. However, In the case of a secured loan, you’ll need collateral, such as a car or money in a savings account.

Can You Use a Personal Loan for Whatever You Want?

A personal loan can be used for just about any purpose. Some lenders may want to know what the money will be used for, but others just want to be certain you’ll be able to pay it back. However, a better financing option may be available if you plan on using your loan for things like tuition or daily expenses. Research your options before applying for a personal loan.

How Big of a Loan Can I Get With a 700 Credit Score?

You’ll likely be able to borrow higher limits with a 700 credit score or higher, but other factors, including your income, employment status, and the type of loan you’re applying for will also impact how big of a loan you qualify for.

How Often Can You Apply for a Personal Loan?

There is no limit to how often you can apply for a personal loan. You can have multiple personal loans open at once, but remember that too much existing debt may lead lenders to disqualify you from taking out more loans or opening new lines of credit.

Researching personal loans can be daunting, especially if you’ve run into sudden unexpected expenses. The best loan for you will depend on your unique financial situation. Check out the personal loans at Credit.com to quickly compare options and see potential APR, terms, and maximum loan amounts.

Source: credit.com

Posted in: Business, Personal Loans Tagged: 2, 2023, About, All, Alternatives, apr, ask, Auto, auto loan, average, balance, Bank, bank account, bank accounts, before, best, big, bills, Borrow, borrowers, borrowing, Budgeting, build, builder, building, Building Credit, Built, business, Business Credit, business loan, calculator, car, cash, cash back, co, co-signer, College, common, consumer rights, cost, costs, Credit, credit card, credit cards, credit check, credit history, Credit Report, credit score, credit union, Debt, debt consolidation, debt-to-income, decision, down payment, education, employer, employer-sponsored retirement plan, Employment, equity, existing, expense, expenses, Featured, federal student loans, Fees, Finance, finances, financial, Financial Wize, FinancialWize, financing, first, fixed, Free, fund, funds, future, General, good, great, hard inquiry, HELOC, history, home, home equity, Home equity loans, Home Improvement, house, How To, impact, improvement, in, Income, Inquiries, interest, interest rate, interest rates, investment, job, Learn, lender, lenders, lending, Life, line of credit, Living, living expenses, loan, Loans, low, LOWER, Luxury, Make, making, manage, Medical, miles, money, money moves, More, Mortgage, mortgage lenders, needs, new, offer, or, Other, pay for college, Payday Loans, payments, Personal, personal line of credit, personal loan, Personal Loans, plan, Planning, potential, principal, products, projects, proof, Purchase, questions, rate, Rates, read, ready, Repairs, repayment, report, Research, retirement, retirement accounts, retirement plan, rewards, right, Saving, savings, Savings Account, score, security, short, social, social security, sponsored, starting a business, student, student loan, Student Loans, subsidized loan, time, timeline, traditional, tuition, under, unique, US, vacations, variable, weighing, will, work

Apache is functioning normally

September 27, 2023 by Brett Tams
Apache is functioning normally

According to IBM’s annual Cost of a Data Breach report, the average cost of a data breach to an organization in 2021 was 4.24 million dollars. That’s the highest average figure in its 17-year history. Most of these breaches were the result of compromised user credentials (where an attacker is able to gain unauthorized access to an account) and are often more costly where remote working is involved.

cyber attack

These breaches aren’t just costly for large enterprises, though. Many small organizations fail to recover from a serious data breach (where the average cost is just under $700,000), with 60% of them going out of business within 6 months of an attack. 

But of course, we can also fall victim to cyber attacks as individuals, and the cost to us can be significant, too. If you’ve been unlucky enough to have been a victim of a data breach, or (worse), identity theft, you’ll know that you can lose eye-watering and potentially crippling sums: this hacking victim lost over $13k in 2020.

But when we talk about the cost of a cyber attack to an individual, we’re not talking simply about financial losses. 

How to Avoid a Cyber Attack

Psychologically, the after-effects of a cyber attack can be damaging. The feeling that you’ve been manipulated by a stranger (and your personal data has been ‘invaded’) can be deeply unsettling. It can lead to a serious loss of confidence, and make you increasingly wary of trusting others. It can cause embarrassment, too, as a victim of a hack can be made to feel as if it’s their fault. 

  • I just watched a documentary on the dark web, and I will never feel safe using my credit card again!

  • Luckily I don’t have to worry about that. I have ExtraCredit, so I get $1,000,000 ID protection and dark web scans.

  • I need that peace of mind in my life. What else do you get with ExtraCredit?

  • It’s basically everything my credit needs. I get 28 FICO® scores, rent and utility reporting, cash rewards and even a discount to one of the leaders in credit repair.

  • It’s settled; I’m getting ExtraCredit tonight. Totally unrelated, but any suggestions for my new fear of sharks? I watched that documentary too.

  • …we live in Oklahoma.

In the most extreme cases (where a cyber attack has led to a significant loss of funds or even the loss of a job) the effect can be even more harmful, leading to stress, anxiety and even depression. Whatever the financial cost of an attack, the emotional cost is often far more significant in the long run.

Fortunately, there are a number of steps you can take to secure your data and ensure you’re aware of the threats you might face while online. 

Check If Your data Is at Risk

Without knowing it, your data might have already been involved in a breach. A breach usually occurs when a hacker gains access to the data­base of a service or company which contains users’ private information, including (but not limited to) usernames, passwords, email addresses and, in the worst cases, bank account details. If you’ve been involved in a data breach, some of your personal information might have been made public without you realizing, which could put you at risk of identity theft.

But don’t panic. You can check if your email address or phone number has been exposed in a data breach by going to Have I Been Pwned. If any of your accounts may have been compromised, change those passwords immediately, and make sure you’re not reusing the same passwords across multiple accounts.

Use Strong Passwords

Speaking of passwords, nearly a quarter of Americans have admitted to using a password like “password” or “123456”. These should clearly be avoided, as they’re easily guessable and won’t take long for a hacker to crack. The longer and more complex a password is, the stronger it is. You can check the strength of your passwords at Security.org.

Using a “passphrase” (a series of unrelated words with spaces in between) is often more effective than using a simple combination of letters and numbers, as these can be harder to crack. This can help to protect your accounts from threats like brute-force attacks, in which attackers will submit vast numbers of possible passwords in an effort to guess correctly.

Protect Your Website(s)

This action may not apply to you, of course — but if you happen to run a website (for a small business, perhaps, or even just a hobby such as blogging) then your personal information is inextricably linked to it, and it can be a huge point of vulnerability. If someone gains access to it through a CMS exploit or a comparable weakness, they can learn your passwords, uncover private information, or even hold the site hostage in an effort to extort you.

Keeping extortion efforts at bay is largely a matter of investing in technical safeguards. Top managed hosting platforms are particularly good at keeping ahead of potential attackers, and some (e.g. Cloudways with its 2022-launched Cloudflare CDN integration) are investing in native features that make it all but impossible for run-of-the-mill hackers to gain access. Overall, though, the biggest thing you can do is refrain from storing any sensitive information on your website. Anything intended for public viewing inevitably makes a bad storage vault.

Beware of Suspicious Emails 

One of the most common ways individuals fall victim to cyber crime is through phishing attacks, a type of ‘social engineering’ where an attacker sends a fraudulent email to an intended victim enticing them to click a suspicious link or hand over personal information. Phishing emails often appear as though they’re from a legitimate organization (like your bank, for example) but there are some classic signs to look out for.

Check the email domain (the bit after the @ symbol) to see if it looks legitimate. If it’s misspelled (or a public domain like gmail.com) it could be a scam. Next, check for poor spelling and grammar in the body of the email, as phishing attempts are often shoddily written. If you have the slightest suspicion that the email may not be legitimate, do not respond or click any links in the email. To ensure you’re aware of the telltale signs, IT Governance has produced a handy guide on the ways to detect a phishing email.

Update Your Software

Cyber threats are constantly evolving, with hackers developing newer, more sophisticated ways to gain access to our devices and our personal data. That’s why it’s so important that our operating systems and software programs are always updated to the latest available versions. These newer versions will fix previously discovered vulnerabilities and offer greater protection against emerging threats.

If you’re still using an outdated operating system, for example, it may contain weaknesses that can quite easily be exposed by an attacker, especially if those weaknesses are public knowledge. Use a tool like Soft4Boost to check for out-of-date and potentially vulnerable software, and update to the latest supported versions where necessary.

Secure Your Devices

It’s also important to protect our physical devices, as a lost or stolen device could present an easy opportunity for an attacker to gain access to your personal data. Ensure a password or PIN is always required to access the device (and don’t use anything easily guessable like 0000 or 1234). Many devices now enable facial recognition or fingerprint access, so enable these functions where possible. When you’re not using your device, make sure it’s locked.

Backing up your data is essential, too, so that it can be recovered in the event of a data breach. Most computers will include a backup facility, while mobile phone data can usually be backed up using cloud storage. Finally, beware of unsecured public Wi-Fi networks (where no password is required for access) as these are often prime targets for an attacker, and disable your Bluetooth function when you’re not using it.

Source: credit.com

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Apache is functioning normally

September 26, 2023 by Brett Tams
Apache is functioning normally

Data Mining, Digital Lending, Real Estate Database, Servicing Products; Conventional Conforming Program Shifts

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Data Mining, Digital Lending, Real Estate Database, Servicing Products; Conventional Conforming Program Shifts

By:
Rob Chrisman

49 Min, 7 Secs ago

As if lenders and vendors don’t have enough other stuff to worry about, the budgetary standoff in the U.S. doesn’t look like it will abate soon, raising the likelihood of the first government shutdown since 2019. Current funding for federal operations will end on October 1 unless a deal is reached or the proverbial can kicked down the road. Thousands of federal workers might be furloughed without pay. Sure it will be temporary, and its wider impact will likely be limited, but still even talking about it is lousy. According to Morgan Stanley, the last 20 government shutdowns that occurred since 1976 “appear to have had limited impact on the economy.” As for bond prices, a shutdown may cause some “temporary instability”, but this is not a given. There is talk of a short-term Continuing Resolution (CR) providing funding until later this year, but federal agencies, including HUD and Treasury, will cease to function normally. The National Flood Insurance Program (NFIP) authorities also expire on October 1st. The Mortgage Bankers Association created a guide outlining how HUD (including FHA and Ginnie Mae), VA, and USDA would be directly affected by the furlough of government employees and the curtailment of agency operations. (Today’s podcast can be found here and this week’s is sponsored by Built. Built is powering smarter and faster money movement for the entire construction and real estate ecosystem, all while reducing risk. Hear an interview with Servbank’s Bryan Crofford on how companies can best invest in employees, promoting longevity and success.)

Lender and Broker Software, Programs, and Services

Life can change on a dime, and sometimes even the most prepared borrowers end up facing financial hardships they never would have imagined. Forward-thinking credit unions are preparing today, so they can be there for their members when they need help the most. It’s why Mission Federal Credit Union implemented the MSP® loan servicing system, to not only improve their own efficiencies, but better serve their members who are facing financial difficulty. Are you ready to join Mission Federal Credit Union by enhancing your technology to be there for homeowners in life’s most challenging moments? Learn more about MSP today.

One thing that you can always count on in the mortgage space, is that regulatory requirements are always changing. This is why it’s critical for Banks or Mortgage Servicers to stay vigilant with comprehensive Compliance Testing and Monitoring to mitigate exposure and minimize risk. At the MBA Annual in Philadelphia, PA, Servbank’s Shayna Arrington will be helping us all do exactly that. Watch her moderate the panel, “Today’s Top Regulatory Issues” on Tuesday, October 17 at 1:30 PM, on 200 Level, Exhibit Hall E. Want to dive deeper into how Servbank can partner with you? Servbank will have a meeting space at the W Philadelphia on 10/16 and 10/17. Schedule some time to meet with them here: [email protected] or learn more at www.servbank.com.

One-Time Close (OTC) Volume Soars to record highs at AFR Wholesale® (AFR)! While housing inventory is still at an all-time low, OTC loans have witnessed an unprecedented surge in volume! In August, AFR closed more One-Time Close loans in one month than at any other time in their long history of offering the product. Homebuyers are increasingly drawn to the convenience and cost-saving benefits of OTC loans, as they streamline the construction process, reduce paperwork, and offer more favorable terms. This surge in OTC loans at AFR is not just a testament to its effectiveness but also an indicator of the outstanding clients and partners of AFR. Breaking news: As a thank you to their clients, AFR has also brought back FHA OTC on site-built homes!! This long-awaited product is back for partners of AFR to utilize now. Partner Today or contact AFR, email or call 1-800-375-6071.

One of the biggest questions for LOs in a down market is “How do I find more agent partners?” The answer is MMI. To find the right agent partners, you need the right data. MMI has assembled the industry’s most comprehensive real estate and mortgage transaction database which is leveraged by thousands of mortgage professionals daily. Using MMI’s database, LOs can easily search & filter, find an agent and at the click of a button, push the info to a CRM like Bonzo. Sign up for a demo today to see why a majority of the top 25 lenders rely on MMI.

Free eBook: Market-Proof: How to Build a Flexible Lending Business Resilient in Upcycles & Downturns. The exaggerated upcycles and downturns of the past few years underscore just how crucial it is for lenders to build resilience and flexibility into their businesses. To overcome today’s challenges, lenders need to hone their lending process at each step. In this new eBook, Maxwell provides 12 tips from industry veterans to help you optimize your mortgage process from loan application to the secondary market. You’ll get insight from exclusive interviews with industry veterans on how to increase efficiency, access economic scale, and become resilient to market volatility like never before. Click here to download Maxwell’s new eBook “Market-Proof: How to Build a Flexible Lending Business Resilient in Upcycles & Downturns.”

The transformation from paper to digital processes offers substantial benefits, including cost reduction and improved borrower experiences. Most lenders are in a hybrid phase, blending paper and digital processes. To navigate this ongoing change and ongoing innovations in the digital lending space, lenders should consider embracing five best practices: create a successful strategy, prioritize borrower experience, ensure compliance, harness technology, and stay adaptable in the evolving digital landscape. Tackle the future of lending by staying informed and proactive. For deeper insights into this digital lending revolution and actionable steps, read the full article.

“Heading to Vegas? The Total Expert team is in full force at the Digital Mortgage conference in Las Vegas! There are three ways to interact with us. The first is to stop by booth #501 to get your Customer Intelligence ROI report and learn how you could increase funded loan volume by 20 percent. You can watch a LIVE demo of Total Expert on Tuesday 9/26. Lastly, catch our Founder & CEO Joe Welu for a panel discussion: The Customer Data Goldmine Goes Way Beyond Credit Triggers on Wednesday 9/27.Schedule time to meet with the Total Expert team in Vegas.”

Freddie Mac, Fannie Mae, Conventional Conforming News

The Federal Housing Finance Agency (FHFA) released its second quarter 2023 Foreclosure Prevention and Refinance Report. The report shows that Fannie Mae and Freddie Mac (the Enterprises) completed 47,370 foreclosure prevention actions during the quarter, raising the total number of homeowners who have been helped to 6,818,471 since the start of conservatorships in September 2008. View the News Release

FHFA-OIG released two reports: Within the Federal Housing Finance Agency (FHFA), the Division of Federal Home Loan Bank Regulation (DBR) is responsible for supervising the Federal Home Loan Bank (FHLBank) System to ensure the safe and sound operation of the FHLBanks. In response to market disruptions, DBR adapted the scope of its Federal Home Loan Bank Supervisory Activities in 2023.

Regulated entities have not been immune to the trends affecting the labor market over the past few years. Some of the regulated entities experienced higher attrition in 2021 and 2022, consistent with trends in the broader labor market, but one Enterprise reported that its turnover rate started declining in 2022. Read the full report, People Risk at FHFA’s Regulated Entities.

Freddie Mac will update Loan Product Advisor® (LPASM) in October to support multiple recent Single-Family Seller/Servicer Guide announcements, plus more enhancements, described in Freddie Mac October LPA Releases.

Freddie Mac Loan Selling Advisor September Updates includes the following information: Uniform Loan Delivery Dataset (ULDD) Phase 4a Updates and Phase 5 Specification, Auto Evaluate on Import Loan, New Loan Delivery Rules Supporting the Duty to Serve Credit Fee Cap, Initial Principal and Interest Payment Amount Conditionality update, Auto Re-evaluate: Improvements to Modify and Evaluate, and Enhancements to Mandatory Cash Contracting.

Leverage Fannie Mae’s new edition of Beyond the Guide to help your organization build a best-in-class quality control (QC) program. Specific examples and scenarios provided can help teams understand and apply Selling Guide concepts in a way that is most impactful to their organization. A robust QC program helps strengthen loan quality ensuring a safe, sound, and resilient mortgage industry.

Fannie Mae Appraiser Update September 2023 edition focuses on dual themes of delivering high quality appraisals and understanding recent policy changes. Topics include updates to the Appraiser Independence Requirements (AIR), new options for 1004D completion, our stance on 3D printed homes, and more.

Fannie Mae posted the September Appraiser Quality Monitoring (AQM) list. Read the AQM FAQs.

Chris Whalen writes, “Our short take on the future of the GSEs (Government Sponsored Enterprises) looks a lot like the character played by Bruce Willis in the 1995 Terry Gilliam film, ‘Twelve Monkeys.’ Imagine if the GSEs were released from conservatorship, but then were immediately designated as a ‘systemically important financial institution’ (SIFI) by the FSOC. How do you think that would work for private investors? What would happen to the guarantee fees?”

Pennymac Conventional LLPAs updates effective for Best Efforts Commitments: Pennymac Announcement 23-58 replacement of ‘Purchase Special’ LLPA Grid with new ‘Area Median Income Adjustments’ LLPA Grid. Pennymac Announcement 23-59 introduces new ‘Investment Property’ LLPA to the ‘LLPAs by Product Feature for All Eligible Loans’ LLPA Grid. Pennymac Announcement 23-60 updates values for the ‘2nd Home Additional’ LLPA on the ‘LLPAs by Product Feature for All Eligible Loans’ LLPA Grid.

Pennymac is aligning with the FHFA based updated project review and eligibility requirements announced in Fannie Mae SEL 2023-06 and Freddie Mac Bulletin 2023-15, with the exception of any reference to co-op projects. View Announcement 23-61: GSE Updated Condo Project Review Requirements

Citizens Correspondent National Bulletin 2023-16 provides updates on the following topics: Conventional Conforming Products, Review requirements for condominium eligibility – DU and LPA, Gifts and Gifts of Equity – DU, 3D printed homes, Trust Income – DU, USDA-RD Product, Fiscal Year 2024 Conditional Commitment Notice, All Products, Disaster Tax Filing Relief.

PHH Mortgage Corporation updated Conforming Product listings for both Delegated and Non-Delegated loans.

Pennymac announcement 23-62: Fannie Mae SEL 2023-06 Condo Project Manager Updates

Citi Correspondent Lending Bulletin 2023-08 provides Credit policy updates regarding Non-Agency Depreciating Markets list updated, Condo & Co-Op Critical Repairs, Shared Equity and Shared Appreciation, LPA Asset, and Income Modeler (AIM), Continuity of Obligation: Limited Cash-Out, Hazard Insurance Update: Effective Date, and Taxpayer First Act.

On September 6, 2023, Fannie Mae and Freddie Mac announced Selling Guide policy changes addressing multiple topics in Fannie Mae SEL-2023-08 and Freddie Mac Bulletin 2023-18.

AmeriHome Mortgage accepts all revisions, view Product Announcement 20230910-CL for details.

Capital Markets

Ahead of today’s $48 billion 2-year Treasury auction, headlines to open the week revolved around increases in oil prices that’s evidence of inflation’s stickiness, Chinese developer Evergrande calling off talks with creditors as it appears headed for bankruptcy, and reaction to hawkish Fed remarks which is forcing yet another reprice from markets. There is growing sentiment that central banks across the globe aren’t done hiking rates, and Treasury yields trended higher to open the week as a result. With the calendar turning to fall, the economy is facing a few headwinds such as the run up in oil prices, student loan payment resumption, an expanding auto workers strike, and a partial shutdown of the U.S. government.

Every lender knows that mortgage rates remain above 7 percent, and housing data released over the last week highlighted another decline in builder sentiment. Housing starts fell 11.3 percent to a 1.25-million-unit pace in August. Existing home sales were down 0.7 percent in August as low inventory, high prices, and high mortgage rates continue to weigh on sales. Hoping for lower interest rates? A recession would likely mean lower interest rates, but workers with stable jobs (most individuals) would want to take advantage of low interest rates, causing home prices to rise faster. Initial jobless claims fell to 201k for the week ending September 16, which was the lowest weekly reading since January. The JOLTS report indicated that the demand for new workers is moderating somewhat however, significant layoffs are not on the horizon.

Today’s calendar includes the Philadelphia Fed non-manufacturing surveys for September, Redbook same store sales, July house price indexes from S&P Case-Shiller and FHFA, September consumer confidence, August new home sales, Richmond Fed manufacturing for September, Dallas Fed Texas services for September, the aforementioned Treasury auction of $48 billion 2-year notes, and remarks from Fed Governor Bowman. We begin Tuesday with Agency MBS prices a few ticks (32nds) better and the 10-year yielding 4.50 after closing yesterday at 4.54 percent. The 2-year is up at 5.12.

Employment

“At Fairway Independent Mortgage Corporation, customer service is a way of life. #FairwayNation mortgage loan officers are dedicated to finding great rates and loan options for our customers while offering some of the fastest turn times in the industry. Our goal is to act as a trusted mortgage advisor, providing highly personalized service and helping you through every step of the loan process, from application to closing and beyond.”

Logan Finance Corporation, a national Non-QM mortgage lender, is excited to welcome Aaron Samples to Logan’s Executive Leadership Team as Chief Revenue Officer. To learn more about why Aaron joined one of the fastest Non-QM lenders in the nation, contact Randy Viars.

The FHA has a job opening for a Senior Underwriter: Job Announcement Number 23-HUD-2915-P. Job duties include assisting the Branch Chief in monitoring the status of goal accomplishment. Advise the Chief of potential problems in attainment of goals and objectives. Research required underwriting procedures and techniques. Serve as an expert-level resource within his/her Office on matters relating to Underwriting and other Direct Endorsement issues.

Don’t forget that private mortgage insurance companies are hiring: MGIC, National MI, Arch MI, Radian, Essent, and Enact (in no particular order). And while’s we’re at it, Fannie Mae and Freddie Mac. And my cat Myrtle’s friend the CFPB.

Dovenmuehle Mortgage, Inc. announced that Robert Howerton has joined the organization as Chief Information Officer where he will be maintaining and expanding Dovenmuehle’s current information technology (IT) infrastructure.

 Download our mobile app to get alerts for Rob Chrisman’s Commentary.

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Source: mortgagenewsdaily.com

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Apache is functioning normally

September 26, 2023 by Brett Tams
Apache is functioning normally

Ready to buy a home? Whether you’ve already found your dream home or you’re just starting the process, one thing’s for sure—you’ll probably need a home loan. But before you start looking into mortgages, you might need to give your credit score a little evaluation. You need a decent score to get a decent mortgage, but what’s the minimum credit score for a home loan?

The short answer? It depends on a lot of things. If you’re ready to start looking for home loans, but aren’t sure if your score is up to par, we’re to help. Keep reading to learn if your credit score is mortgage-ready.

A Quick Look at Minimum Credit Scores for Mortgages

Mortgages are complex forms of financing, so a lot of factors come into play when you’re applying. Find out more about the minimum credit requirements for these types of loans—and why your credit score even matters—below.

Why Does Your Credit Score Matter for a Mortgage Loan?

Your credit history tells a financial story about you. It lets mortgage lenders better understand whether you’re reliable, how likely you are to pay off your debt and whether your debt-to-income ratio is low enough to allow you to cover your current debt obligations in addition to a new mortgage payment.

If you have bad credit, you may look like a risky investment to potential lenders and you’ll be less likely to get the approval. Or, if you do get approved, you may be required to pay higher interest rates than individuals with a better credit score might pay.

Luckily, you can still get approved for a home loan even with a lower-than-average score. That’s because your credit score is critical, but it’s not the only factor lenders consider. Plus, different types of loans come with different requirements, so you don’t always need a good credit score to qualify.

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What Credit Score Do You Need to Get a Mortgage?

As stated above, the required credit score really depends on what type of loan you’re looking at. Let’s break it down a bit, defining these types of loans, so you can understand more about mortgages and some of your options.

Credit Requirements for Conventional Mortgage Loans

Conventional mortgage loans are not backed by a government entity. They’re offered via private lenders, including banks and mortgage companies. Typically, you need good credit to qualify for a conventional mortgage. For this purpose, that’s considered to be 640 or higher.

However, if you fall slightly short of that mark, you might still be able to find a lender if your payment history, debt-to-income ratio and other factors are positive. Ultimately, lenders need to know that you’re likely to pay your mortgage as agreed and that you also have the resources to do so.

Credit Requirements for Government-Backed Mortgage Loans

Credit requirements for government-backed loans get a bit more complex. Since these loans are all or partially backed by federal government agencies, lenders may approve you even if you don’t have good credit. However, that doesn’t mean everyone gets approved. Here are some basics about eligibility and minimum credit score requirements for various government-backed mortgage types.

Credit Score Requirements for USDA Loans

These loans are partially backed by the federal government and are available to individuals buying qualifying suburban or rural homes. USDA loan lenders must conduct a thorough review of an applicant’s credit profile. Here are just some of the rules they must apply:

  • If three credit scores are present, they take the middle one. If two credit scores are present, they take the lowest one. If only one or no credit score is present, the lender must do a credit analysis and obtain alternate credit verification.
  • The credit score must be based on at least two trade lines (open accounts) that were active at least 12 of the past 24 months. In short, if you don’t have much credit or you haven’t dealt in credit for years, you may have a challenge getting approved.
  • There must be no significant delinquencies or collection accounts.

Credit Score Requirements for VA Loans

VA loans are available to eligible veterans and their families and are backed by the Department of Veterans Affairs. They don’t require a down payment or private mortgage insurance. The VA does not establish minimum credit score requirements and requires lenders to conduct a comprehensive credit analysis.

VA loans don’t have maximum debt ratios, but the lender has to provide compensating factors that prove they can pay the mortgage if their debt-to-income ratio is more than 41%. Veterans who borrow without a down payment may be limited to mortgages of $453,100 or less.

Credit Score Requirements for FHA Loans

FHA loans are backed by the Federal Housing Administration and are seen as a lower risk by lenders because they’re government-backed loans. This option is a common choice for anyone who qualifies as a first-time home buyer because of its relatively low minimum credit score requirements.

Credit score requirements for FHA loans are:

  • 580 or higher for maximum financing—this means you wouldn’t need a down payment or could have a very small down payment, depending on other factors.
  • 500 or higher for partial financing—this means you’d need at least some down payment orwould need to buy a house for less than it was worth.

You can’t get approved for an FHA loan with a credit score less than 500. Other factors do impact approval, such as your payment history, income and debt level.

Do You Need Good Credit to Refinance Your Mortgage?

A refinance is still a mortgage, so yes, you typically need good credit to get approved for one. Many of the minimum credit scores for home loans above apply to refi loans too. One benefit you get when refinancing is that you may owe less than your house is worth. That could reduce the need for down payments and even help you access better interest rates because the lender has less risk in making the loan.

Has COVID-19 Impacted Mortgage Credit Requirements?

Yes, COVID-19 has impacted minimum credit scores for mortgages. These changes are typically made by each bank. In the early months of the pandemic, uncertainty led many banks to drastically reduce home loans or even put them on hold. For example, in April 2020, JPMorgan Chase changed credit requirements to at least a 700 credit score with a 20% down payment.

However, falling interest rates and improved economic factors caused many banks to loosen requirements in the later months of the pandemic and into 2021. Ultimately, you’ll need to do your research when you’re ready to apply for a mortgage loan to find out what options you might qualify for.

What You Can Do Now

First, check your credit score. You might consider signing up for ExtraCredit. You’ll get access to 28 of your FICO scores—and you’ll see the credit scores that mortgage lenders see. ExtraCredit also has features such as Build It to help you positively impact your credit score if you need to boost it before applying for a mortgage.

Once you have a credit score that’s above 640—or, even more optimally, above 700—you can start shopping for mortgage loans and good rates. And remember that if you do get approved, your credit score also impacts your interest rates. Always ensure you know what your mortgage is going to cost you each month and over the life of the loan.

Source: credit.com

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Apache is functioning normally

September 26, 2023 by Brett Tams
Apache is functioning normally

Yes, you can refinance student loans with a private lender more than once in the quest for a lower interest rate and different repayment term.

How Many Times Can You Refinance Student Loans?

If you’re a graduate who has the credit score and income to qualify, you can refinance your student loans as many times as you’d like. In fact, some folks refinance multiple times.

But before you get too refi-happy, it’s important to know the advantages and disadvantages of this strategy.

What Are Some Advantages of Refinancing Multiple Times?

One of the biggest advantages of refinancing your student loans is that you may be able to qualify for a lower interest rate, whether you refinance once or several times. A reduced rate can help you save money in the long run.

For example, let’s say you’ve been paying down an older federal Grad PLUS loan that currently has a balance of $40,000 and an interest rate of 7.90%. You have 10 years of payments left, which are currently $483.20 per month.

You have good credit and qualify for a seven-year, fixed refinance rate of 6%. If you were to go through with the refinance, you’d actually increase your monthly payment by about $100. However, you’d save about $8,900 in total interest.

Later on, you might qualify for a lower fixed rate or an even lower variable rate, and so on.

Or you might find it helpful to refinance to a longer term, with lower monthly payments. That will likely mean paying more in interest over the life of the loan, but lower monthly payments may put you in a better position to accomplish your short-term financial goals.

Reputable lenders charge no application or origination fees, so refinancing each time will not cost you anything.

💡 Quick Tip: Get flexible terms and competitive rates when you refinance your student loan with SoFi.

What Are Some Disadvantages of Refinancing Multiple Times?

One disadvantage of refinancing your student loans is that your credit score could temporarily drop by a few points. Whenever you apply for a loan, the lender performs a hard credit inquiry. One or two inquiries usually have a small and temporary impact on your score. However, too many hard inquiries within a short time frame could cause some damage. The good news is that many student loan refinancing lenders allow you to shop for rates and get quotes online using a soft credit pull, which has no impact on your score.

Another factor to consider is your time. Though you can refinance as many times as you want, it helps to make sure it’s worth the effort. That means researching reputable lenders and the rates and terms they offer.

It’s important to point out that refinancing federal student loans even once will cause you to permanently forfeit government-backed protections and benefits, such as federal student loan forgiveness programs, deferment, and forbearance.

How Is Student Loan Refinancing Different Than Consolidation?

It’s important to make a distinction between refinancing and consolidation. When you refinance your student loans with a private lender, you are borrowing one new loan with new terms, such as a lower interest rate or different repayment term, and using the proceeds to pay off your existing loans.

When you consolidate federal student loans into a Direct Consolidation Loan, you combine your existing loans into one. The term may be drawn out to up to 30 years, and the interest rate will be the weighted average of the original loans’ rates, rounded up to the nearest eighth of a percentage point. For this reason, your new rate may actually be higher than the rate of your previous lowest-interest loan.

Things to Look for When Refinancing

Whether you refinance your student loans for the first or sixth time, it would be smart to check that your new rate and term make sense for you.

You’ll encounter fixed-rate and variable-rate loans. Fixed-rate loans have one set interest rate that does not change over the life of the loan. The rates on fixed-rate student loans are typically higher than the initial rates of variable-rate loans. However, because the rate never changes, it can make budgeting easier.

Variable-rate loans have interest rates that start off lower, but can fluctuate based on the prime rate or another index. Rates can climb if the rate or index they are tied to goes up (and vice versa).

Variable-rate loans might be a good choice for shorter-term loans. The longer the loan term, the bigger the chance of a rate hike.

Also, beware of qualifying for a low interest rate that’s attached to a longer-term loan. Though monthly payments might be low, a longer term might mean you’ll end up paying much more in interest over the life of the loan. If you can afford the higher monthly payment, loans with shorter terms can be a good cost-saving option.

Consider looking for a refinance lender that offers competitive rates and flexibility in choosing the repayment term. And if you want to refinance both federal and private student loans into one new loan, look for a lender that does that.

Serious savings. You could save thousands of dollars.
We offer flexible terms and low fixed or variable rates.

Refinancing Your Student Loans More Than Once

It’s all about the great rate chase.

Having a low debt-to-income ratio can help you qualify for a lower interest rate. So if you have a higher salary, get a big bonus, or pay off other debts, your debt-to-income ratio might improve.

Similarly, if your credit score increases, you typically become more attractive to lenders. This could happen if you are using a small amount of your available credit, or if you find and correct a mistake on one of your credit reports. (Do student loans affect your credit score? Continuous on-time payments may have a positive effect.)

Married couples may want to consider refinancing student loans together to put the power of two earners to use. A solid cosigner could also be brought aboard.

If you’re thinking about a refinance, it could help to keep an eye on the federal funds rate, which is the rate banks charge one another for overnight loans. When the Federal Reserve raises or lowers short-term interest rates, private lenders respond in turn. (This does not apply to federal student loans, whose interest rates have been set by Congress once a year since 2006.)

Even if interest rates rise now, they could still be considered low by historical standards.

Refinancing Your Student Loans With SoFi

Is it bad to refinance multiple times? If it saves you money, that’s nothing but a good thing. Refinancing won’t be the right move for all people, but everyone should know the rates they’re paying, their total student debt load, and their repayment strategy.

SoFi is a leader in refinancing student loans, with low fixed or variable rates and flexible loan terms.

Looking to lower your monthly student loan payment? Refinancing may be one way to do it — by extending your loan term, getting a lower interest rate than what you currently have, or both. (Please note that refinancing federal loans makes them ineligible for federal forgiveness and protections. Also, lengthening your loan term may mean paying more in interest over the life of the loan.) SoFi student loan refinancing offers flexible terms that fit your budget.

With SoFi, refinancing is fast, easy, and all online. We offer competitive fixed and variable rates.

FAQ

Can I consolidate student loans more than once?

You can consolidate federal student loans into a Direct Consolidation Loan more than once only if you have federal loans that were not included in a previous consolidation, or if you previously consolidated loans under the Federal Family Education Loan (FFEL) consolidation program. Remember that consolidation does not lower your loan rate.

How many times can you refinance a loan?

As many times as you qualify to do so.

How many times can you take out student loans?

When it comes to federal student loans, there is no time limit on how long a borrower can receive Direct Unsubsidized Loans or Direct PLUS loans, but annual and aggregate limits for Direct Unsubsidized Loans apply.

Private student loans, for which you must qualify or have a cosigner, usually have an annual limit equal to an institution’s cost of attendance minus other financial aid. Most have aggregate loan limits for undergraduate and graduate students.


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.

Student Loan Refinancing
If you are a federal student loan borrower you should take time now to prepare for your payments to restart, including the opportunity to refinance your student loan debt at a lower APR or to extend your term to achieve a lower monthly payment. (You may pay more interest over the life of the loan if you refinance with an extended term.) 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, such as the SAVE Plan, or extended repayment plans.

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.

SOSL0823017

Source: sofi.com

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Apache is functioning normally

September 26, 2023 by Brett Tams
Apache is functioning normally

Welcome to the land of majestic Mount Rushmore, endless prairies and the dazzling Badlands.

When it comes to finding your forever home or maybe just a fresh start, South Dakota offers a ton of appealing options. From bustling urban hubs to cozy lakeside towns, this guide to the best places to live in South Dakota is your golden ticket to discovering the towns that boast excellent schools and stable job markets in undeniably beautiful surroundings.

  • Population: 196,528
  • Average age: 34.2
  • Median household income: $66,761
  • Average commute time: 18.5 minutes
  • One-bedroom average rent: $995

Sioux Falls is often considered one of the best places to live in South Dakota, and it’s easy to see why. This bustling city is a haven for outdoor enthusiasts, artists and aspiring professionals alike. The Big Sioux River winds its way through town, offering scenic beauty and outdoor activities like kayaking and fishing, right at your doorstep. But if you’re more of an indoor person, don’t worry; the city is home to the Washington Pavilion, a unique space with an art gallery, science museum and even a performing arts theater.

When it comes to everyday life, Sioux Falls is as practical as it is picturesque. The city boasts a robust job market, with opportunities in healthcare, financial services and retail, among other industries. Schools are top-notch, offering a quality education for the younger generation, while the healthcare facilities are some of the most advanced in the area. Ease of living is another big draw — traffic jams are a rarity, and most amenities are just a short drive away.

  • Population: 76,184
  • Average age: 37.2
  • Median household income: $58,072
  • Average commute time: 15.7 minutes
  • One-bedroom average rent: $1,205

If you’re thinking about the best places to live in South Dakota, Rapid City should be on your radar. Imagine a city where you can have breakfast Downtown, hike in the Black Hills National Forest by lunchtime, and be back in time for a locally brewed beer from Lost Cabin Beer Company and a buffalo burger for dinner. This isn’t a fantasy; it’s just an average Saturday in Rapid City.

Rapid City is surrounded by pristine nature and serves as the ideal home base for those looking to explore natural wonders like Mount Rushmore and the Crazy Horse Memorial. With an eclectic mix of art galleries, cozy coffee shops and historic architecture, Downtown Rapid City is more than just a pit stop, it’s a destination in its own right.

The Rapid City economy is strong, buoyed by tourism and a fast-growing tech industry, so you’ll find a variety of career options. Schools are solid, and there are ample parks and recreational facilities for kids and adults alike. The city also hosts a series of community events throughout the year, from summer concerts to winter ice-skating festivals.

What you won’t find? The hassles of big city living. Traffic is manageable, the cost of living is reasonable, and people generally say “hello” when you pass them on the street. Rapid City captures the essence of South Dakota — friendly, scenic and endlessly fascinating.

  • Population: 23,577
  • Average age: 24.5
  • Median household income: $53,845
  • Average commute time: 13.3 minutes
  • One-bedroom average rent: $940

Brookings emerges as a compelling choice as one of the best places to live in South Dakota, especially for those who appreciate a blend of intellect and community spirit. Home to South Dakota State University, the town has an atmosphere brimming with youthful energy and academic curiosity.

The McCrory Gardens offer a breath of fresh air and botanical beauty, while the Children’s Museum of South Dakota provides a magical world of learning for the youngest residents. College sports are a big deal here, and even if you’re not a student, you’ll find yourself swept up in the fervor of a Jackrabbits football game before you know it.

Excellent schools make Brookings ideal for families, and there’s a burgeoning job market in industries like agriculture, healthcare and education. Shopping and dining options are plentiful, offering everything from homegrown produce at the local farmers’ market to sushi and international cuisine. The town even has an active arts scene with frequent community theater performances, art walks and concerts. Safe streets and a strong sense of community make Brookings a place where neighbors know each other and people look out for one another.

  • Population: 12,358
  • Average age: 36.1
  • Median household income: $52,258
  • Average commute time: 17.6 minutes
  • One-bedroom average rent: $775

Known for its breathtaking landscapes, Spearfish is encircled by the Black Hills, Spearfish Canyon and a wealth of outdoor opportunities. Whether you’re into mountain biking, hiking or fishing, you’re practically destined to become an outdoor enthusiast here. But Spearfish isn’t just about the great outdoors; it’s also a hub for education and culture. The town is home to Black Hills State University, which adds a layer of youthful energy and intellectual depth to the community, along with venues like the Matthews Opera House & Arts Center, showcasing everything from plays to musical acts.

On the practical side of everyday life, Spearfish delivers and then some. The local economy is strong and diverse, benefiting from a mix of education, tourism and small businesses. Its public schools are top-rated, making it a safe bet for families, and the community itself is close-knit, often gathering for seasonal events and festivals. Plus, unlike some small towns where you have to drive miles for basic amenities, Spearfish has a solid range of shopping and dining options.

What truly sets Spearfish apart is its genuine sense of community combined with the backdrop of natural wonder. It’s a place where you can catch a university lecture one evening and find yourself fly fishing in crystalline waters the next morning.

  • Population: 28,324
  • Average age: 35.8
  • Median household income: $58,439
  • Average commute time: 10.9 minutes
  • One-bedroom average rent: $845

Known as “Hub City,” Aberdeen serves as a regional hub for healthcare, commerce and culture. The city boasts several landmarks like the Aberdeen Community Theatre and the Dacotah Prairie Museum, both of which offer regular events that enrich the social scene. If you’re in the mood for something more outdoorsy, Wylie Park and Richmond Lake are perfect spots for fishing, camping and unwinding under the South Dakota sun.

Aberdeen shines in terms of everyday convenience and quality of life. The job market is steady, with opportunities in healthcare, education and manufacturing. Educational facilities, from elementary schools to Northern State University, offer top-notch learning environments. Even better, Aberdeen has a low cost of living, making it easier to stretch a dollar whether you’re buying a house or enjoying a night out at one of the town’s tasty restaurants.

  • Population: 14,000
  • Average age: 38.7
  • Median household income: $69,868
  • Average commute time: 12.5 minutes
  • One-bedroom average rent: $755

As the state capital, Pierre is a hub of political activity, and you can feel the historical gravitas just by walking near the South Dakota State Capitol building with its iconic copper dome. But the city offers more than just legislative action; it’s also a sportsman’s paradise. Sitting on the banks of the Missouri River, Pierre is an angler’s dream come true with an abundance of walleye, and it’s no slouch when it comes to hunting either, offering some of the best pheasant hunting in the United States.

By and large, life in Pierre is straightforward and hassle-free. The local job market is solid, primarily driven by government jobs, healthcare and education. There’s a lot to do here for singles and families, whether it’s hiking along the scenic LaFramboise Island Nature Area or taking part in the many community events that pepper the town’s calendar. Pierre offers a unique blend of outdoor activities and political buzz, making it a distinctive spot for those looking to experience the best of South Dakota.

  • Population: 11,802
  • Average age: 23.3
  • Median household income: $47,920
  • Average commute time: 14.6 minutes
  • One-bedroom average rent: $995

Home to the University of South Dakota, Vermillion is a small but lively town where brains meet beauty on the banks of the Missouri River. You’ll find a mix of students, professors and residents enjoying everything from Coyotes football games to riverside picnics. The National Music Museum — featuring an awe-inspiring collection of musical instruments from various epochs and cultures — is another local treasure that elevates the town’s appeal.

The educational ecosystem in Vermillion is top-notch, with excellent public schools complemented by the intellectual resources of the university. Employment opportunities are ample, thanks to the university and a variety of small businesses. You won’t be stuck in traffic for hours; instead, you can spend that time enjoying local parks or taking in a college basketball game. What’s more, the cost of living here is quite reasonable, making it easier to enjoy what the town has to offer without breaking the bank.

  • Population: 15,453
  • Average age: 41.3
  • Median household income: $59,190
  • Average commute time: 11.6 minutes
  • One-bedroom average rent: $632

In a state rich with scenic beauty and friendly communities, Yankton stands out as one of the best places to live in South Dakota. Located along the Missouri River and famously the former Dakota Territory capital, Yankton melds historical significance with an array of modern attractions. Outdoorsy types will be quick to appreciate the town’s proximity to Lewis and Clark Recreation Area, where water sports, camping and hiking opportunities abound.

Everyday life in Yankton checks off all the boxes for a well-rounded experience. The local economy is buoyed by a mixture of manufacturing, healthcare and retail jobs. Education is a strong suit as well, with a range of public and private schools that consistently earn high marks. Local businesses — from cozy coffee shops to essential grocery stores — meet daily needs while the friendly residents make you feel part of a genuine community. Events like the annual Riverboat Days festival encapsulate Yankton’s communal spirit and offer an entertaining diversion for residents young and old.

  • Population: 22,722
  • Average age: 37.6
  • Median household income: $56,520
  • Average commute time: 13.5 minutes
  • One-bedroom average rent: $630

Known for its stunning lakes, particularly Lake Kampeska and Lake Pelican, Watertown is a haven for anyone who loves water sports, fishing or just gazing at beautiful sunsets over the water. And don’t forget the town’s signature attraction, the Bramble Park Zoo, which boasts an impressive collection of wildlife and offers educational programs designed for residents of all ages. Watertown is also home to the Redlin Art Center, showcasing the works of Terry Redlin, a renowned American wildlife painter, making it a hidden gem for art aficionados.

Watertown offers a high standard of living while maintaining that cherished small-town charm. The job market is steady with a focus on manufacturing, healthcare and retail industries. In terms of attractions, Watertown has plenty to offer, from shopping malls to restaurants that go well beyond the standard small-town fare. You’ll also find a rich social fabric here, marked by community events like outdoor concerts and seasonal festivals that provide plenty of opportunities for mingling with neighbors.

  • Population: 6,071
  • Average age: 37.0
  • Median household income: $58,564
  • Average commute time: 11.8 minutes
  • One-bedroom average rent: $640

Home to Dakota State University, Madison is a hub for technology and innovation, a place where you can bump into cybersecurity experts as easily as lifelong anglers. Speaking of lakes, Lake Herman and Lake Madison offer ample opportunities for fishing, boating and picnics, making them popular spots for family outings or tranquil solitude.

Madison delivers on the practicalities of daily life, too. With a stable job market centered around education, healthcare and local business, making a living here isn’t a high-stakes gamble. Plus, community events like the annual Prairie Village Jamboree add a layer of entertainment and social engagement that keeps life interesting.

Settle down in South Dakota

Whether you’re an outdoor enthusiast, a tech whiz or someone who just wants to enjoy the simple pleasures of a tight-knit community, South Dakota has something for everyone. From the buzz of the state capital in Pierre to the academic atmosphere of Vermillion, or the natural allure of Watertown, the Mount Rushmore State is an undiscovered gem for those looking to improve their quality of life.

Making a list of the best places to live in South Dakota isn’t just about numbers and statistics — it’s about understanding the lifestyle, culture and opportunities that make each place unique. So pack your bags and set your GPS, because your dream apartment might just be in a South Dakota zip code.

Source: rent.com

Posted in: Growing Wealth Tagged: 2, About, action, active, Activities, Advanced, advice, age, air, All, Amenities, apartment, Appreciate, Architecture, art, art center, art gallery, artists, arts center, average, Bank, banks, basic, Basketball, Beauty, bedroom, beer, before, best, Best Cities, Best of, big, biking, black, Blend, Blog, breakfast, building, business, Buying, Buying a house, cabin, camping, Capital, Career, Children, choice, city, city living, coffee, College, communities, community, commute, Commute Time, company, Convenience, cost, Cost of Living, cozy, cybersecurity, dining, dream, Economy, education, Employment, energy, engagement, entertaining, Entertainment, events, experience, experts, Family, festival, financial, Financial Services, Financial Wize, FinancialWize, first, fishing, football, forest, Free, Fresh start, friendly, gallery, games, GEM, government, great, grocery, grocery stores, guide, healthcare, historic, historical, home, horse, hours, house, household, household income, hunting, ice, in, Income, industry, international, job, job market, jobs, kids, lake, Land, Life, Lifestyle, list, Live, Living, Local, low, low cost of living, Make, making, manufacturing, market, markets, median, median household income, miles, missouri, modern, More, museum, Music, national forest, natural, needs, neighbors, offer, offers, or, Other, outdoor, outdoors, park, place, Popular, Professionals, programs, public schools, quality, Rent, restaurants, rich, richmond, right, river, safe, schools, science, seasonal, Series, shopping, shopping malls, short, Side, simple, small towns, social, social scene, South, south dakota, space, spirit, Sports, stable, states, statistics, student, students, summer, Tech, Technology, time, tips, Tips & Advice, town, under, unique, united, united states, walking, wants, washington, wealth, will, winter, young

Apache is functioning normally

September 26, 2023 by Brett Tams
Apache is functioning normally

The Possible Card — issued by Coastal Community Bank, in partnership with Possible Finance — began slowly rolling out to the public in April 2023. As of this writing, the card is available in most states, with the exception of Hawaii, Nevada and Maryland.

While still in its early stages, the Possible Card won’t help propel your credit journey forward because it currently doesn’t report payments to major credit bureaus like TransUnion, Equifax and Experian. Even once it begins reporting payments, it still won’t be your most cost-effective option. Possible Finance touts “peace of mind” that you won’t be charged interest, but there’s a big caveat: Instead of an annual percentage rate, the card has a monthly fee.

Monthly fees on credit cards are a hot trend now, especially among young financial technology companies (fintechs). But depending on the balance you’re carrying, that fee can be more expensive than interest charges you’d find on a traditional credit card.

The Possible Card does offer predictability in terms of your monthly payment, and it also allows you to bypass a credit check and security deposit. But unlike a security deposit, which is refundable, those monthly fees won’t be. Plenty of other credit cards can jump-start your credit-building goals at a lower cost.

Here’s what you need to know about the Possible Card.

🤓Nerdy Tip

While any credit card’s rewards, benefits and fee structure can be adjusted at any time, new cards from startup financial technology companies are particularly prone to significant changes as they find their place in the market. Keep that in mind as you research your credit card options.

1. The monthly fee adds up

The monthly fee to hold the Possible Card is either:

  • $8 per month ($96 annually) for a $400 credit limit, or

  • $16 per month ($192 annually) for an $800 credit limit.

That makes the Possible Card more expensive than similar newcomers in its class. For example:

  • The Tomo Credit Card (currently waitlisted as of September 2023) charges $2.99 per month. There’s no credit check, upfront deposit or APR.

  • The Pesto Mastercard costs $3.33 a month, and while a deposit is required, it can be an asset instead of cash.

In fact, for no monthly or annual fee at all, you could consider cards like the Chime Credit Builder Visa® Credit Card, which lets you set your own security deposit, or the Grow Credit Mastercard, which has a free membership tier. Neither card carries an APR, neither conducts a credit check, and all of these aforementioned cards report your payments to credit bureaus.

Or, you could fare even better with a traditional secured credit card. Yes, you’ll have to come up with a one-time security deposit upfront, but for many of the best secured credit cards, you need a minimum of just $200, or nearly what you’d pay — every year and nonrefundable — for the Possible Card’s higher-limit version. Plus, many traditional secured cards come with upgrade paths to better products. The Possible Card does not, nor do many newer fintech-backed cards, for that matter.

The Discover it® Secured Credit Card is a good example of the kind of features to look for in a starter card. It requires a minimum security deposit of $200, but it has a $0 annual fee and earns rewards. It reports payments to all three major credit bureaus, and Discover begins automatic reviews starting at seven months to see whether you qualify to upgrade to an unsecured card and get your deposit back.

🤓Nerdy Tip

If you’re approved for the Possible Card, you can immediately start using the virtual card if you enroll in autopay. Otherwise, you’ll have to wait for the physical card to arrive in the mail.

2. There’s no credit check

The Possible Card doesn’t require a credit check and instead relies on a cash-flow-based underwriting algorithm to determine whether you qualify. But that underwriting process requires you to link an eligible account through a third party called Plaid.

This practice of skipping a credit check in exchange for linking a bank account has become a fairly common practice for certain credit cards, especially newcomers backed by fintechs. But there are better credit cards that don’t require a credit check.

The previously mentioned Chime Credit Builder Visa® Credit Card, for instance, requires opening a Chime Spending Account, but it doesn’t charge any fees or interest. It’s a secured credit card with a flexible deposit. The amount of money that you move from the spending account to the Credit Builder secured account is the amount you have available to spend.

3. No APR or late fees apply, but don’t be fooled

Some credit cards that charge monthly fees instead of interest market the idea of being “predictable,” for budgeting purposes. Possible Finance claims on its website that the monthly fee is cheaper than the charges on a traditional credit card, but that’s misleading. For most credit cards, interest charges don’t apply at all if you pay off the balance in full every month.

With the Possible Card, you’ll owe the monthly fee whether you carry a balance or not.

Depending on the size of your balance, that monthly fee could cost more than the interest charged on a traditional credit card, especially in cases where the card’s credit limit is relatively low. You can use the sliding scales below to illustrate this:

For context, the average APR for credit cards assessed interest in May 2023 was 22.16%, according to Federal Reserve data. If you have less-than-ideal credit, that percentage may be higher.

Trying to get approved for a card?

Create a NerdWallet account for insight on your credit score and personalized recommendations for the right card for you.

4. You can carry a balance over a short term

Unlike some credit cards in its class, the Possible Card allows you to revolve a balance, up to a limit. The card’s Pay Over Time option lets you pay off the balance over four installments if you schedule automatic payments and enroll in the app. There’s no additional charge to use this option as long as the account has a balance of at least $50 and no pending payments.

The downside of the Pay Over Time feature is that the card will be locked and cannot be used for new purchases or automatic recurring expenses until the installment loan is paid off. But the benefit is that this guardrail can prevent you from taking on more debt than you can handle.

If you’re using your Possible Card to make automatic recurring payments for streaming services or other expenses, make sure to change your payment method when you opt in to the Pay Over Time feature.

5. It doesn’t report payments to credit bureaus

The Possible Card is still in its infancy and does not report payments to the credit bureaus as of this writing. The company shared in an email that it has plans to start reporting payments to one bureau in the fourth quarter of 2023.

When your goal is to build credit with a credit card, reporting payments to the three major credit bureaus is a must-have feature. Ideally, you want your credit history to be recorded by all of them so that future lenders can access that information easily.

See more from Chime

Chime says the following:

  • The Chime Credit Builder Visa® Card is issued by Stride Bank, N.A., Member FDIC, pursuant to a license from Visa U.S.A. Inc. and may be used everywhere Visa credit cards are accepted.

  • To apply for Credit Builder, you must have received a single qualifying direct deposit of $200 or more to your Checking Account. The qualifying direct deposit must be from your employer, payroll provider, gig economy payer, or benefits payer by Automated Clearing House (ACH) deposit OR Original Credit Transaction (OCT). Bank ACH transfers, Pay Anyone transfers, verification or trial deposits from financial institutions, peer to peer transfers from services such as PayPal, Cash App, or Venmo, mobile check deposits, cash loads or deposits, one-time direct deposits, such as tax refunds and other similar transactions, and any deposit to which Chime deems to not be a qualifying direct deposit are not qualifying direct deposits.

  • On-time payment history may have a positive impact on your credit score. Late payment may negatively impact your credit score. Chime will report your activities to Transunion®, Experian®, and Equifax®. Impact on your credit may vary, as Credit scores are independently determined by credit bureaus based on a number of factors including the financial decisions you make with other financial services organizations.

  • Money added to Credit Builder will be held in a secured account as collateral for your Credit Builder Visa card, which means you can spend up to this amount on your card. This is money you can use to pay off your charges at the end of every month.

Source: nerdwallet.com

Posted in: Credit Cards, Moving Guide Tagged: 2, 2023, About, ACH, Activities, All, Amount Of Money, annual percentage rate, app, apr, asset, Automated Clearing House, automatic, average, balance, Bank, bank account, Benefits, best, big, Budgeting, build, build credit, builder, building, Building Credit, cash, cash-flow, Checking Account, Chime, common, community, Community Bank, companies, company, cost, costs, Credit, Credit Bureaus, credit card, credit cards, Credit Cards for Bad Credit, credit check, credit history, credit limit, credit score, credit scores, data, Debt, decisions, deposit, Deposits, Direct Deposit, discover, Discover it, Economy, employer, Equifax, expenses, expensive, experian, FDIC, Features, Federal Reserve, Fees, Finance, financial, Financial Services, Financial Wize, FinancialWize, Fintech, Free, future, gig, gig economy, goal, goals, good, Grow, hawaii, history, hold, hot, house, impact, in, interest, journey, jump, late fees, lenders, loan, low, LOWER, Make, market, Maryland, mastercard, member, mobile, money, More, Move, nerdwallet, Nevada, new, offer, or, Original, Other, party, payment history, payments, paypal, peace, place, plans, products, rate, report, Research, Reviews, rewards, right, score, secured cards, secured credit card, secured credit cards, security, security deposit, september, short, single, Spending, startup, states, streaming, structure, tax, tax refunds, Technology, the balance, time, traditional, Transaction, TransUnion, trend, u.s., Underwriting, upgrade, venmo, virtual, visa, will, young
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