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Even with mortgage rates hovering around 15-year highs, home prices in California edged higher for the fourth consecutive month in May, according to the latest data from the California Association of Realtors.
The median single-family home price in the Golden State last month was $836,110, roughly $25,000 higher than in April and $100,000 above February’s average, data shows.
The San Francisco Bay Area ($1,300,000), Central Coast ($1,000,000) and Southern California ($800,000) continue to be the priciest, while the Far North region ($380,000) is the most affordable, CAR said.
Home prices are still well below the all-time high recorded in May 2022 when the average California single-family home cost $893,200.
Average Single-Family Home Prices in California
Region | May 2023 | April 2023 | May 2022 |
Statewide | $836,110 | $811,950 | $893,200 |
Condo/Townhomes | $635,000 | $634,000 | $675,000 |
Los Angeles Metro | $765,000 | $740,000 | $805,000 |
Central Coast | $1,000,000 | $1,020,000 | $995,000 |
Central Valley | $485,000 | $463,000 | $510,000 |
Far North | $380,000 | $385,000 | $425,000 |
Inland Empire | $574,990 | $565,000 | $596,000 |
San Francisco Bay Area | $1,300,000 | $1,250,000 | $1,465,000 |
Southern California | $800,000 | $785,000 | $845,000 |
Additionally, the number of homes under contract in California rose by nearly ten percent in May after dipping in April and March.
This is the ‘most expensive’ neighborhood in California, study says
After an initial spike in the lead-up to Congress’s debate over the debt ceiling, mortgage rates have hovered in the high 6% range. The Fed has already signaled as many as two more rate hikes this year to tame inflation.
But regardless of where interest rates go in the short term, or even long-term, Wei says the underlying reason home prices move higher in California comes down to simple supply and demand.
“The tight supply is really constraining,” he says. “People are not putting their houses on the market and, of course, we’re just not building fast enough.”
Source: ktla.com
The October 2009 issue of Consumer Reports contains an article extolling the virtues of generic store-brand products. While shoppers used to sacrifice quality when choosing generic, that’s no longer the case. From the article:
If concern about taste has kept you from trying store-brand foods, hesitate no more. In blind tests, our trained tasters compared a big national brand with a store brand in 29 food categories. Store and national brands tasted about equally good 19 times. Four times, the store brand won; six times, the national brand won.
In other words, store brands offer roughly the same quality as national brands, but at a much-reduced cost. How much reduced? Consumer Reports says that the store brands they tested cost an average of 27 percent less than the name brand equivalents.
Sometimes theory is one thing and reality another. It’s nice that Consumer Reports can score great deals on store brands. But could I? Last week, I walked to two local grocery stores to do my own research. First I looked at Safeway, where Kris and I shop most often. Next, I walked across the street to Fred Meyer, a store we usually try to avoid. (The store is huge and its layout makes little sense to me.)
I spent an hour in each store, roaming the aisles, looking for representative prices on a variety of items. I tried to pick one item at random from every section of the store. When I’d finished, I had a list of 25 products for which each store carried the same name brand and their own store-brand equivalent.
The results actually surprised me. You can save a lot of money with store-brand products — far more than I suspected. Here’s the raw data from my research:
The first column lists the name-brand item I used as a basis for comparison. I’ve given each store two columns, one for the price of the name-brand item, and one for the generic item. On each line, red text indicates the highest-priced option and green text indicates the least expensive option.
Here’s a closer look at some of these comparisons:
You get the idea. Buying store brands at Safeway would save nearly 22% for the items on this list. At Fred Meyer, I could save over 36%. And Fred Meyer store brands cost 44% less than name brands at Safeway — without the need for a “loyalty card”.
A note on methodology: While conducting this survey, I faced a tough choice. Which price should I list? The non-sale price for each item? Or the sale price? Of the 25 name-brand items listed, 15 were on sale at Safeway and 14 were on sale at Fred Meyer. (There was a lot of overlap on the sales, too.) At Safeway, 20 of the generics were on sale; 10 were on sale at Fred Meyer. I chose to list non-sale prices because it’s impossible to know which items are on sale when.
I learned a number of things from this project. First off, we’re shopping at the wrong grocery store. Buying name-brand products at Safeway is the most expensive way to go. Based on this list, shopping at Fred Meyer instead would save us nearly 12%, even without moving to generics.
Second, generics are not always a bargain. On 10 out of the 25 items, the Safeway generic cost as much (or more!) than the name-brand equivalent at Fred Meyer. On the other hand, Fred Meyer store-brand items offer fantastic savings, especially when compared to Safeway’s name-brand selections. (The items on this list were 44% less expensive!)
Another factor to consider is that some stores have a better selection of store brands than others. Subjectively speaking, Fred Meyer seemed to have about double the number of generic items that Safeway had — and often had multiple sizes or varieties. They carried several types of store brand salsa, for example, while Safeway’s selection was more limited. At both stores, the generics were generally staple items: rice, toilet paper, tomato sauce, etc.
“We should buy more generics,” I told Kris after collating my data.
“We do buy generics,” she said.
“We do? Like what?”
“…” she said (proving for once that Kris is not always right!).
Though Kris and I do a lot of things to save money, we don’t actually buy a lot of store brands. We’re not opposed to them — we just stick to brands we trust. This brand loyalty costs us money. Here’s how Consumer Reports put it in the article that inspired my research: “Switching to store brands can be a painless way to cut your grocery bill.” They’re right.
After conducting this experiment, I realize there are four key steps to saving big bucks on groceries. More than anything else, these actions can help struggling families cut costs:
This exercise was eye-opening in another way. I discovered that shopping at Safeway costs us money. If the data here is representative, then switching to Fred Meyer could save us over 10% on our grocery bill. That’s enough to let us dine out one extra time per month. Or it’s more money we can save for our trip to France next year.
Kris and I are both wary of switching from Safeway to Fred Meyer — as I mentioned, there’s more to this decision than price — but I suspect that if we give it a chance, we’ll find ways to deal with Fred Meyer’s annoyances and save money in the process.
Source: getrichslowly.org
If you’ve searched for an international flight in the past year, you might’ve seen new airlines at the top of the results offering international flights for a fraction of the cost of traditional full-service airlines.
Say hello to the newest generation of low-cost carriers. Airlines such as Norse Atlantic Airways, Play, French bee and Zipair are now flying to the U.S., offering long-haul flights to Europe and Asia.
You might think a 6-hour (or longer) flight across an ocean isn’t where you want to go cheap and the online reviews might be enough to give you nightmares without even flying. But, depending on the type of trip and traveler, these low-cost airlines might fit the bill.
The first reason anyone might consider flying with these airlines is the cheap airfares. Low-cost airlines have a bad reputation because of their endless add-on fees for baggage, seat selection, food and drinks. But even when you include those extra fees, low-cost carriers may still be the cheapest option.
Brett Bernstein, founder of Gatsby.ai, an ambassador marketing software company based in San Diego, and his wife were searching for flights back from their honeymoon in Paris last December. The couple ultimately decided to fly French bee because it was about a third of the price of other flights.
“It was $400 and change per person,” Bernstein says of his one-way flight. “And when I was looking to buy a flight on a different airline, it was like $1,500 a person.”
And he was pleasantly surprised. French bee flies out of Paris-Orly Airport, a smaller and older airport than Charles de Gaulle Airport, but it was easier and quicker to get to.
The seat was about as big as other airline seats and had a seatback screen loaded with plenty of entertainment options. Bernstein paid for a fare that included a carry-on, checked baggage and a meal. If anything, the most remarkable thing about the flight was how unremarkable it was.
“The thing about flying is it’s a commodity,” Bernstein says. “Like once you arrive there, you really don’t care how you got there as long as it’s safe,” and you’re comfortable.
Bernstein was concerned enough about the safety of flying on a low-cost carrier that he had researched the issue beforehand. But it’s worth noting that budget carriers don’t cut corners on safety.
The Federal Aviation Administration ensures that any international carrier flying into the U.S. meets international safety standards.
Katy Nastro, a spokesperson for Going.com, a travel deals website, also pointed out that newer low-cost airlines typically have newer planes with updated equipment, since they lease or acquire new aircraft.
“These planes could potentially be nicer than some of the legacy carriers’ big jets that they’ve been flying for 20 years that they’ve just been retrofitting,” Nastro says.
Still, you should go in knowing what you paid for. Even with newer planes, you might not get the same amenities as you would on a full-service carrier, particularly for business class. Here are some tips to keep in mind:
Know the cancellation policies. Many low-cost airlines don’t offer refunds on their lowest fares, so book only if you’re confident you’ll take the flight.
Look for low-cost carriers with airline partnerships for more reliability. Low-cost carriers that are subsidiaries of more prominent airlines usually share the same customer service, so getting help with your booking may be easier. If your flight is canceled, you’ll also want to ensure the airline has codeshare partners to help you rebook.
Beware of fees. Ensure you include the add-on fees, such as bags and seats, when comparing costs across airlines.
Read the restrictions. Low-cost airlines often have more stringent rules on the size of your luggage or check-in times. You may be forced to pay extra for a bag that’s just a bit too big or be unable to board your flight if you miss the check-in time.
Bring your own food and entertainment. Depending on the airline, you might not get seatback screens, Wi-Fi or complimentary drinks or snacks.
The proliferation of low-cost airlines is expected to continue to grow. For example, Fly Atlantic, a Belfast-based airline, is expected to sell low-cost transatlantic flights in 2024. The global low-cost airline market, which was valued at more than $190 billion in 2022, is projected to reach more than $302 billion by 2030, according to data from Contrive Datum Insights, a market research firm.
But more low-cost airlines are good for consumers, even those who don’t fly on them.
“People love to hate on budget airlines, but at the same time, the reason that we can get affordable airfare, in general, is because of budget airlines,” Nastro says. “More competition actually puts pressure on those legacy carriers.”
Source: nerdwallet.com
Plainfield, formally known as the Village of Plainfield, is a small suburb of Chicago known for its rich history and sense of community. The area is home to over 44,000 people, and is close to both major cities and untouched nature. But is Plainfield, IL, a good place to live? We’ve got you covered.
If you’re looking at homes for sale in Plainfield or are just curious about what the area has to offer, this Redfin guide is for you. Here are 10 pros and cons to consider before moving to Plainfield, IL.
There’s a lot to love about living in Plainfield. Here are five of the best.
Plainfield has a relatively affordable cost of living compared to other cities in the United States. Housing costs, in particular, are on par with the national average, which makes it an attractive option for those looking for an affordable place to live near a major city. For example, the median sale price of a house in Plainfield is $429,900,
Renting is also more affordable than a majority of the country; the average one-bedroom apartment costs $1,750, which is $200 below the national average.
The community in Plainfield is tight-knit and enjoys celebrating together. Community events are common, with festivals, parades, and other public gatherings being organized throughout the year.
Consider visiting Settlers’ Park for concerts and movies during the summer, or strolling through the local farmers’ market on Sundays. During the winter, there are plenty of holiday events, including parades, light festivals, and holiday markets.
Plainfield is blessed with a variety of natural spaces, including parks like Settlers’ Park and Lake Renwick Preserve. There are also numerous trails for biking and hiking, such as the Van Horn Woods, along with opportunities for fishing and boating along the DuPage River. These spaces offer residents plenty of opportunities for outdoor recreation and relaxation.
Downtown Plainfield is the heart of the city. The area is rich in historic charm, featuring buildings with history and significance. There are also a variety of small, locally-owned shops, boutiques, and restaurants, providing residents with unique shopping and dining experiences. And if you prefer to drive, there is free parking most days of the week.
Located about 35 miles southwest of downtown Chicago, Plainfield is a commuter city that offers the advantage of a small-town feel with relatively easy access to big-city amenities. The access to cultural institutions, diverse food scene, major sporting events, and a wide range of job opportunities in Chicago can be attractive to many people.
Plainfield has a lot of benefits, but it also has a few downsides. Here are five to keep in mind.
Plainfield doesn’t have a local public transportation system, and instead offers bus routes to and from Chicago and other nearby cities. The limited public transportation means the area is car-dependent, which can be a drawback for those who prefer to use public transit or don’t own a vehicle. Walkability is also an issue outside of downtown.
As a smaller suburban town, Plainfield lacks the nightlife scene you might find in larger cities. It doesn’t have a large selection of bars, clubs, or late-night eateries, and most establishments close earlier in the evening. If you thrive on nightlife, you’ll likely have to commute to Chicago for evening adventures.
However, if you’re looking for great local restaurants, there are plenty of options, including Sovereign, Backroads Burger & Bar, and Urban Kitchen.
The winters in Plainfield can be harsh and unpredictable. Temperatures often drop well below freezing, and the area experiences significant snowfall. If you’re not a fan of cold weather, snow shoveling, or driving in winter conditions, this could be a major drawback. The winter season can also be quite long, typically lasting from late November until March.
Summers are not as hot as some other parts of the US, but they are quite humid. The best weather is typically in the early summer and fall.
While Plainfield is an affordable city relative to the US average, it’s actually much more expensive than nearby cities, such as Chicago and Aurora. The median house price in Chicago is $340,000, nearly $100,000 less than Plainfield, and the median house price in Aurora is $307,000, over $100,000 cheaper than Plainfield. This can be a drawback for those on a tighter budget.
Over the past two decades, Plainfield has been experiencing a significant increase in population. From 1990 to 2021, the city’s population increased from 4,557 to over 44,000. While this growth has led to better amenities, it can also lead to overcrowded schools, increased traffic, and strained public resources. Rapid growth can also impact the small-town feel that many residents value and are used to.
Source: redfin.com
Editor’s note: This post has been updated with new information and offers.
The Capital One Venture X Rewards Credit Card (see rates and fees) is the issuer’s first foray into the world of premium travel rewards cards and knocks it out of the park. With an annual fee that undercuts the competition and plentiful perks that are easy to understand, the card is nearly a no-brainer for travelers ranging from luxury seekers to the more budget-minded. Chase and Amex, take notice. Card rating*: ⭐⭐⭐⭐½
Over the last couple of years, premium cards like The Platinum Card® from American Express and Chase Sapphire Reserve have taken center stage with major updates, including adding new perks and statement credits — along with increased annual fees.
However, the Capital One Venture X stole the limelight when it launched in November 2021 with some incredibly valuable perks. Plus, with an annual fee of just $395, the Venture X is more affordable than its main competitors. The card also offers up to $300 in annual statement credits toward bookings made through Capital One Travel, which makes up for the majority of its annual fee.
If you’re considering the Venture X, here is everything you need to know before clicking that “apply” button.
Official application link: Capital One Venture X with 75,000 bonus miles after you spend $4,000 on purchases in the first three months from account opening.
The Venture X card’s sign-up bonus is 75,000 bonus miles after you spend $4,000 on purchases in the first three months from account opening.
According to TPG’s latest valuations, 75,000 Capital One miles are worth $1,388, thanks to the outsized value you can get from transferring Capital One miles to the program’s airline and hotel partners.
Even if you don’t want to navigate the complexities of transferable points, you can still use your Capital One miles directly for travel at a rate of 1 cent per mile — making the sign-up bonus worth $750.
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Related: How (and why) you should earn transferable points
The Venture X accrues miles at the following rates:
This simplicity builds off the $95-per-year Capital One Venture Rewards Credit Card (see rates and fees), a product that has been around for over a decade. In that way, the Venture X represents the best of both worlds — high earning potential on travel purchases, specifically, but a solid everyday earning rate that’s easy to keep track of.
Read more: Credit card showdown: Capital One Venture vs. Capital One Venture X
Capital One miles can be redeemed in several ways, but transferring miles to travel partners probably represents the most lucrative opportunity.
Over the years, Capital One has made significant improvements to its mileage program, including shifting from solely fixed-rate redemptions to adding a host of airline and hotel transfer partners, most of which now convert at a 1:1 ratio.
Here is the full list of transfer partners and their respective transfer ratios from Capital One:
Transfer partner | Transfer ratio |
---|---|
Aeromexico Club Premier | 1:1 |
Air Canada Aeroplan | 1:1 |
Air France-KLM Flying Blue | 1:1 |
Avianca LifeMiles | 1:1 |
Accor Live Limitless | 2:1 |
British Airways Avios | 1:1 |
Cathay Pacific Asia Miles | 1:1 |
Choice Privileges Hotels | 1:1 |
Emirates Skywards | 1:1 |
Etihad Guest | 1:1 |
EVA Infinity MileageLands | 2:1.5 |
Finnair Plus | 1:1 |
Qantas Frequent Flyer | 1:1 |
Singapore KrisFlyer | 1:1 |
TAP Air Portugal Miles&Go | 1:1 |
Turkish Airlines Miles&Smiles | 1:1 |
Virgin (Atlantic) Red | 1:1 |
Wyndham Rewards | 1:1 |
Leveraging transfer partners offers several sweet-spot redemption opportunities, including economy flights to Hawaii for just 7,500 Capital One miles by transferring to Turkish Miles & Smiles and redeeming for United flights, and business-class flights to South America for 50,000 Capital One miles transferred to TAP and redeemed on United.
Capital One offers several fixed-value redemption options if you consider simplicity more important than cent-per-point value:
You should never use the last option here since it slashes the value you get compared to travel redemptions.
While a $395 annual fee might initially seem like a deterrent, it’s easy to see how the Venture X’s perks can offset the yearly cost with minimal effort:
* Benefits available on Visa Infinite cards.
**Upon enrollment, accessible through the Capital One website or mobile app, eligible cardholders will remain at upgraded status level through December 31, 2024. Please note, enrolling through the normal Hertz Gold Plus Rewards enrollment process (e.g. at Hertz.com) will not automatically detect a cardholder as being eligible for the program and cardholders will not be automatically upgraded to the applicable status tier. Additional terms apply.
With a $395 annual fee, the Venture X falls within the premium travel cards category. Two main competitors come to mind; however, both of these cards come with significantly higher annual fees — $550 for the Chase Sapphire Reserve and $695 for the Amex Platinum (see rates and fees).
For additional options, check out our list of the best premium travel cards.
Read more: The best premium credit cards: A side-by-side comparison
With simple rewards and overall solid value, the Venture X has mass appeal, especially for those searching for (or switching from) a premium travel rewards card. In addition, there are a lot of under-the-radar perks on the card, including Visa Infinite benefits with an extensive list of trip, luggage, car rental and purchase protections.
Add in a growing network of airport lounges, no-fee authorized users, Capital One’s robust transfer partners and a luxury hotel program, and you have a card that is nearly a no-brainer.
Official application link: Capital One Venture X with 75,000 bonus miles after you spend $4,000 on purchases in the first three months from account opening.
For rates and fees of the Amex Platinum Card, click here.
For Capital One products listed on this page, some of the above benefits are provided by Visa® or Mastercard® and may vary by product. See the respective Guide to Benefits for details, as terms and exclusions apply.
Additional reporting by Ryan Wilcox, Eric Rosen and Christina Ly.
Source: thepointsguy.com
On average, American consumers only spend five hours researching their home loan options, despite the fact that such transactions are arguably the largest in most borrower’s lives.
That compares to two hours for a television, four hours for a computer, and 10 hours for a car, according to a new survey from Zillow, which offers mortgage rate shopping via its Mortgage Marketplace platform.
The average cost of a mortgage is $145,920, so if just five hours of research are put in, each hour is worth $29,184.
Those surveyed actually spent the same amount of time planning a week-long vacation, which has an average cost of $1,708, or $341 per hour.
At least those surveyed spent more time searching for a house, though at 40 hours, it’s still pretty light relative to other seemingly everyday purchases.
Despite the ongoing mortgage crisis, borrowers are spending no more time researching home loans than they did two years ago.
And borrowers are actually gathering fewer mortgage rate quotes, with the average number down to three versus four in 2008.
It doesn’t hurt to get estimates from both mortgage lenders and mortgage brokers.
“The last few years should have driven home the lesson that understanding one’s home loan is critically important, but mortgages continue to be something that most people don’t want to spend time thinking about,” said Zillow Chief Economist Dr. Stan Humphries, in a statement.
“Not understanding a home loan can have catastrophic consequences.”
For example, a half percentage point in loan rate could save a borrower with a $400,000 mortgage more than $44,000 (how to buy down your mortgage rate).
Source: thetruthaboutmortgage.com
Consolidating credit card debt is a common use of personal loans. And it makes sense, given that personal loans typically have lower interest rates than credit cards (which currently average 24.58%).
But what about saving money on an existing personal loan? Can you refinance a personal loan, ultimately saving money on interest or lowering your monthly payment? The answer is, yes. However, it may not make sense for every person or every type of personal loan.
Read on to learn why you might refinance a personal loan, how the process works, plus the pros and cons of a personal loan refinance.
Table of Contents
While there may be a variety of reasons to refinance a loan, it mainly comes down to two.
1. To lower the overall interest rate and total interest paid.
2. To lower the monthly payment.
These two might seem like the same thing, but they’re not.
When you refinance any type of loan, you are essentially replacing your old loan with a new loan that has a different rate and/or repayment term. If the new loan has a lower annual percentage rate (APR), you can save money on interest. If the APR is the same but the repayment term is longer, you can lower your monthly payments, making them easier to manage, but won’t save any money. (In fact, a longer repayment term generally means paying more in interest over the life of the loan.)
Another reason why you might consider refinancing a personal loan is to consolidate your debts (so you just have one payment) or to add or remove a cosigner.
Here’s a look at some of the benefits of refinancing a personal loan.
If you are able to qualify for a personal loan with a lower APR, it may be possible to save a significant amount of money over time, provided you don’t extend your loan term. You can also save on interest by shortening your existing loan term, since this allows you to pay off the loan sooner.
Refinancing to a lower APR and/or extending the length of the loan can lower your monthly payment. A lower monthly bill could help you get back on track, especially if you’ve been struggling to make your monthly payments.
If you have a personal loan as well as other debts (such as credit card debt), you can use a new personal loan to consolidate those debts into one loan and a single monthly payment. If your new loan has a lower APR than the average of your combined debts, you may also be able to save money.
Refinancing a personal loan might not be the right move for everybody. Here are some disadvantages to consider.
If you refinance a personal loan using a loan that has a longer repayment term, you could end up paying much more in interest over the life of the loan.
Many personal loan lenders charge origination fees to cover the cost of processing and closing the loan. This is a one-time fee charged at the time the loan closes and, in some cases, can be as high as 10% of the loan. Since the fee is deducted before the loan is disbursed to you, it reduces the amount of money you actually get.
Some lenders charge a fee if you pay off the loan before the agreed-upon term, which is known as a prepayment penalty. If your original lender charges you a prepayment penalty, it could cut into your potential refinancing savings.
If you are thinking about refinancing a personal loan, here are some steps you’ll want to take.
To benefit from personal loan refinancing, you typically need to have better credit than you had when you got your original personal loan. With a stronger credit profile, you might qualify for a lower APR on the new personal loan.
You can access your credit report for free from each of the three major credit bureaus — Equifax, TransUnion, and Experian — through Annualcreditreport.com. It’s a good idea to scan your reports for any errors and, if you find one, report it to the appropriate bureau.
You can typically access your credit score for free through your credit card company (it may be listed on your monthly statement or found by logging in to your online account).
Every bank has different parameters for determining who they’ll offer loans to and at what rate, so it’s always worth it to shop around. This could mean looking at traditional banks, credit unions, and online-only lenders.
Many lenders will give you a free quote through a prequalification process. This typically takes only a few minutes and does not result in a hard inquiry, which means it won’t impact your credit score. Prequalifying for a personal loan refinance can help compare rates and terms from different lenders and find the best deal.
Once you’ve decided on a lender who can help you refinance to a new loan, it’s time to formally apply. You’ll likely need to submit several documents, including pay stubs, recent tax returns, and a loan payoff statement from your original lender (which will show how much is still owed).
Once you have your new loan funds, you can pay off your original loan. You’ll want to contact your original lender to find out what the process is and follow their instructions. It’s also a good idea to ask your original lender for documentation showing the loan has been paid off.
Be sure to confirm your first payment due date and minimum payment amount with your new lender and make your first payment on time. You may want to enroll in autopay to ensure you never miss a payment. Some lenders even offer a discount on your rate if you sign up for autopay.
Can you refinance a personal loan? Yes, and doing so may allow you to get a better rate and/or more affordable payments. However, you’ll want to factor in any fees (such as origination fee on the new loan and/or a prepayment penalty on the old loan) to make sure the refinance will save you money. Also keep in mind that extending the term of your loan can increase the cost of the loan over time.
If you’re interested in exploring your personal loan refinance options, SoFi could help. SoFi personal loans offer competitive, fixed rates and a variety of terms. Checking your rate won’t affect your credit score, and it takes just one minute.
SoFi’s Personal Loan was named NerdWallet’s 2023 winner for Best Online Personal Loan overall.
Yes, it is possible to refinance a personal loan. Refinancing involves taking out a new loan to pay off the existing personal loan, ideally with more favorable rates and terms. However, whether you can refinance your personal loan will depend on factors such as your creditworthiness, the terms of the original loan, and the policies of the new lender.
Refinancing a loan can have both positive and negative impacts on your credit. Initially, the process of refinancing may result in a hard inquiry on your credit report, which can cause a temporary decrease in your credit score. However, if you use the refinanced loan to pay off the existing loan and make timely payments on that loan, it can positively impact your credit over time.
Yes, it is possible to refinance a personal loan with another bank. Many banks, credit unions, and online lenders offer loan refinancing options. This allows you to transfer your personal loan balance to a new loan with a new lender. However, eligibility criteria, terms, and interest rates will vary by lender. It’s a good idea to shop around, compare offers, and consider factors such as interest rates, fees, and repayment terms before deciding to refinance with another bank.
The pros of refinancing a personal loan include the potential to:
• Secure a lower interest rate
• Reduce monthly payments
• Consolidate multiple debts into a single loan
• Switch to a more favorable lender
This can result in savings on interest costs and improved cash flow. However, there are also potential downsides to consider, which include:
• Paying an origination fee for the new loan
• Getting hit with a prepayment fee from your original lender
• Extending your loan term can increase the total cost of the loan
It’s important to weigh the pros and cons before you pursue a personal loan refinance.
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.
Checking Your Rates: To check the rates and terms you may qualify for, SoFi conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit.
External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.
Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .
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Source: sofi.com
Eco-conscious consumers know that trade-offs are a fact of life. Just about every purchase we make has a carbon footprint, as do activities as simple as flicking on the lights or turning on the air conditioner.
The Aspiration Spend & Save account is designed for people eager to reduce their environmental impact while still earning a decent return on their purchases and savings. It’s one of the better high-yield savings and rewards checking accounts around, though there is a monthly cost to take full advantage of its benefits.
Aspiration Spend & Save has some important drawbacks, both on the environmental and financial fronts. So take some time to learn about its capabilities, upsides, and downsides before opening an account.
Aspiration Spend & Save is a checking and savings account package that pays interest on eligible balances and offers rewards on select debit card purchases. It has no required monthly maintenance fee, but some features aren’t available without a paid subscription to Aspiration Plus ($7.99 per month).
Aspiration Plus users can earn up to 3.00% APY on the first $10,000 in the account. Aspiration Standard users’ yield tops out at 1.00% APY, also on the first $10,000. Both plans require at least $500 in monthly debit card purchases to earn interest.
Aspiration offers several ways to reduce your carbon footprint, including the option to have Aspiration plant a tree for every debit card purchase and automatic carbon offsets for your driving.
Aspiration Spend & Save stands out from competing accounts for several reasons:
Aspiration offers two plans: Aspiration Standard and Aspiration Plus. Aspiration Standard has no required monthly fee, though you can pay one if you want. Aspiration Plus costs $7.99 per month.
Your choice of plan determines which features you have access to and how much you can earn on your purchases and savings:
Aspiration Standard | Aspiration Plus | |
Yield on Balances | 1.00% APY on the first $10,000 | 3.00% APY on the first $10,000 |
Cash Back on Purchases | Up to 5% | Up to 10% |
Early Direct Deposit | Yes | Yes |
Free ATM Withdrawals | Yes, in-network | Yes, in-network plus one monthly out-of-network |
Optional Tree Planting | Yes, free | Yes, free |
Automatic Driving Offsets | No | Yes, at no extra cost |
Purchase Assurance | No | Yes, on eligible items for 90 days from purchase |
Basically, Aspiration Plus is potentially much more rewarding than Aspiration Standard, but you need to maintain a significant balance and regularly make purchases with Aspiration’s Conscience Coalition partners to get real value from it.
Aspiration Spend & Save has the same basic features and parameters as other online bank accounts, but it throws some curveballs as well.
To earn full interest on your balance in a given month, you must make at least $500 in qualifying debit card transactions during the period.
Once you clear that hurdle, you can earn interest on balances at least up to $10,000 in your Save account. Balances above $10,000 earn no interest for Aspiration Standard users and 0.25% APY for Aspiration Plus users. Aspiration Plus users also earn 0.25% APY on their balances even if they don’t spend enough on their debit card.
The yield is 1.00% APY with Aspiration Standard and 3.00% APY with Aspiration Plus, subject to change at Aspiration’s discretion.
The minimum deposit and ongoing balance is $10. There’s no monthly maintenance fee with Aspiration Standard unless you want to pay one. Aspiration Plus has an unavoidable $7.99 monthly fee.
You can earn cash back on eligible debit card purchases with Aspiration’s Conscience Coalition partners, which include well-known retail brands and service providers like Warby Parker, Allbirds, Imperfect Foods, and Blue Apron.
The cash-back rate varies by partner and your plan level. The maximum payback is 5% with Aspiration Standard and 10% with Aspiration Plus.
Regardless of your plan level, you can get your paycheck direct-deposited up to two days early if your employer or benefits provider qualifies. Most private employers and government agencies qualify.
Aspiration has more than 55,000 fee-free machines in its ATM network. With Aspiration Plus, you also get one monthly reimbursement for out-of-network ATM fees.
Aspiration is a mobile-first platform built around its iOS and Android mobile apps. The mobile app earns high marks from Google Play and App Store reviewers, and Aspiration has made several significant updates (each adding new features) since 2019. The interface is intuitive and uncluttered and can handle essential banking functions like remote check deposit and online bill payments.
Environmental consciousness and action are core to Aspiration’s brand. In addition to built-in incentives to shop with eco- and climate-friendly brands, Aspiration’s eco-friendly features include:
Aspiration also pledges to give at least 10% of its profits to charity, though not all contributions go to environmental causes specifically.
As an Aspiration Plus member, you qualify for purchase assurance for 90 days on eligible items purchased with your debit card. Purchase assurance is a basic insurance policy that reimburses you for qualifying theft or damage.
Regardless of your plan level, you get other purchase protections:
Aspiration Spend & Save comes with FDIC insurance up to $2 million. That’s eight times the standard maximum of $250,000.
Aspiration Spend & Save is a rewarding money management platform with potentially significant environmental impact, but it has some notable downsides.
Aspiration Spend & Save can more than pay for itself with regular use and is one of the few financial platforms that pays more than lip service to environmental causes.
Aspiration Spend & Save reserves its best features for paying customers, who can still lose money on the deal, and there’s a natural limit to how much you can earn in rewards and interest.
Aspiration Spend & Save is a potentially rewarding financial platform that can improve your finances while lessening your impact on the environment. But before you apply, see how it compares to popular competitors like the Signature Federal Credit Union High-Yield Checking account.
Aspiration Spend & Save | Signature FCU High-Yield | |
Maintenance Fee | $0 to $7.99 per month | $0 |
Minimum to Open | $10 | $0 |
Minimum Ongoing | $10 | $0 |
Maximum Yield | 3.00% APY with Aspiration Plus | 4.00% APY |
Qualifying Activities | Yes | Yes |
Maximum Balance to Earn | Yes, $10,000 | Yes, $20,000 |
Spending Rewards | Up to 10% cash back | None |
Aspiration Spend & Save has more potential value than Signature FCU High-Yield Checking thanks to its cash-back rewards program and unlimited base yield for Aspiration Plus users. But if all you care about is maximizing your yield on day-to-day balances, Signature FCU’s higher interest rate makes it the better choice.
Aspiration Spend & Save is one of the better high-yield checking and savings packages available to U.S. residents. Its eco-friendly features enhance its appeal for users who want to reduce the ecological impact of their everyday choices without sacrificing financial rewards.
That said, Aspiration Spend & Save has some important shortcomings, both financially and ecologically. Before you open an account, figure out how much you expect to use it — and how much you expect to keep in your account — and decide whether it’s worthwhile.
Despite some important limitations, Aspiration Spend & Save has a rewarding cash-back program and offers above-average yields on eligible balances. It’s also among the most intentionally planet-friendly financial platforms out there, even if its actual impact is fuzzy. But if you’re tempted to upgrade to Aspiration Plus, run the numbers and make sure you can offset the monthly fee.
Source: moneycrashers.com
Just about everyone who owns a home in this country is hanging on to it. The number of existing homes, as opposed to newly built, that sold in May was 20% lower than a year earlier. That’s according to data released Thursday by the National Association of Realtors.
Even if people want to move, many who bought or refinanced a couple of years back are loath to give up a 3% interest rate on their mortgage, especially if it means buying a new house at a rate well above 6%.
In Kate Sam’s household, sleepovers are not really doable.
“You can hear everything from anywhere,” Sam said.
She has two kids, ages 4 and 8. And she’d like to sell their small house in Baltimore to buy a bigger place so they could host sleepovers.
But Sam and her husband refinanced their mortgage in 2021 at a rate of 3%. And now, “it’s just unimaginable to give up the current cost,” she said.
Lots of people are choosing to stay put even if they’d rather sell. Lawrence Yun, chief economist with the National Association of Realtors, said he expects there to be fewer divorces (!) this year.
“The couple may not like each other, but they love their 3% mortgage rate, so they don’t want to give that up, Yun said.
Others may avoid taking new jobs if it means relocating, he added.
But certain life changes might cause people to make a move — even at those higher rates. Like having a third child when you live in a two-bedroom condo.
“At some point, the financial benefit of staying in the same space loses its luster, so to speak,” said Jonathan Miller, who leads Miller Samuel, a real estate appraisal and consulting firm in New York.
Others want less space and a different layout, said Mark Goldman, a loan officer with C2 Financial Corp., a mortgage brokerage.
“A lot of people, when they age, they want a bedroom on the first floor. They don’t want to be dealing with stairs,” Goldman said.
And then, there are sales in which the homeowner won’t need to buy a new place.
“What I’ve been suggesting to my real estate agents is — watch the obituaries. You know, a lot of times when somebody passes away, the kids don’t want the house, they want the cash,” Goldman said.
And if rates do eventually go down, say, back into the 5% range, Miller expects all those people who’ve been holding out to put up a For Sale sign so they can finally get divorced … or host that sleepover.
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If you’re having money problems, who do you call?
CPAs, financial advisors, and financial coaches all share similar money-themed responsibilities, but their goals, education, and fees are vastly different.
Financial coaches do a lot more than show you how to build a budget or slap your wrist when you want to eat out five times a week; they teach you how to have a healthy relationship with money, so you and your family can work towards a brighter financial future.
Read on to learn what financial coaches do and whether or not you need one!
What’s Ahead:
Financial coaches take you back to the basics of money management. Personal Finance 101.
Their goal is to evaluate your personal finance habits, identify patterns in your spending and saving, and suggest new boundaries and budget methods to help you reach your financial goals. They also act as accountability partners; so the next time you’re tempted to splurge on a new pair of shoes or the latest iPhone, your financial coach will help set you straight.
Their job is to educate you on ways to manage your money well, so you can recover from debts, save for major financial goals, and achieve a lifestyle where you control your finances — not the other way around.
Financial coaches provide instruction and advice to help people eliminate unhealthy habits and establish better budget practices; but before they get started, they take a little time to understand their client’s unique routines and aspirations.
Generally, financial coaches begin by tracking your current spending and saving patterns, debts, and budget for a short time, likely a few weeks.
As they come to a clearer understanding of your relationship with money, they help you understand which habits are detrimental to your financial wellbeing and how to implement new, healthy practices. They also learn what emotional ties you may have to money and how those connections influence your finances.
Next, financial coaches will review their client’s short- and long-term goals.
Would you like to save for a down payment on a house? Address your current debts? When would you like to retire?
For many of us, this list can be quite long, and it may be challenging to know which goals to prioritize. A financial coach can help you get organized and teach you how to adjust your spending and saving patterns to tackle each goal.
Finally, your financial coach will propose a plan, unique to your needs and desires, to get you back on track.
They’ll help you develop a new budget, eliminate debt, build an emergency fund, save for retirement, and more. They will likely meet with you every week or every other week, generally for a period of six months to a year, to check in and to keep you accountable.
At the end of that time, your financial coach will have taught you how to maintain a lifelong habit of managing your money well!
If you need help planning for retirement, understanding your tax situation, or even saving money, both financial coaches and financial advisors can help. However, while these experts do have a lot in common, the reality is they’re quite different, and it’s important to understand why before you hire one.
First of all, the clients that financial coaches and financial advisors take on typically start from different points.
If, for instance, you have minimal savings and perhaps even substantial debts, you need some tips and tricks to restore your finances to a healthy position. A financial coach can provide that level of service! On the other hand, if you’ve already saved a great deal, but don’t know what to do with the cash you’ve accrued, a financial advisor would be a better fit.
When it comes to investments, financial advisors also have the upper hand. One of the key responsibilities of a financial advisor is to manage a client’s investment portfolio, and most require an investment minimum of $100,000 or even $1 million. Financial coaches, however, aren’t licensed to provide investment advice for their clients, so any tips they recommend will likely be limited and non-specific.
While financial advisors can direct budding investors, financial coaches can address deep-seated issues their clients have with money. Whether you’re an avid budgeter or on the brink of bankruptcy, finances are stressful for nearly every American. Financial coaches can address any negative associations — be they emotional, mental, behavioral, or otherwise — and provide practical methods for correcting them.
Another key difference between coaches and advisors is education.
Most financial advisors undergo extensive education and possess specific credentials and designations, such as Certified Financial Planner (CFP) or Chartered Financial Analyst (CFA); Additionally, financial advisors must be licensed and registered with the Financial Industry Regulatory Authority (FINRA).
Financial coaches, however, aren’t required to complete any particular training or certification(s) to provide their services. For this reason, it’s vital that anyone interested in hiring a financial coach be sure to research thoroughly and prioritize those who have achieved some level of education, training, or certification.
Coaches and advisors also differ in the amount of time they spend with a client.
Since financial coaches aim to help people establish a basic understanding of healthy budget practices, their business relationship is generally for a shorter period of time, such as a year or less. Advisors, however, work with clients for the long haul. They will likely meet once or twice a year to evaluate the client’s assets and manage their investment portfolio.
One of the most significant differences between coaches and advisors is how much they charge for their expertise.
Since financial coaches aren’t required to have any formal training or licensing, they can be a much more affordable option, accessible to even those who are steeped in debt. However, their rates vary greatly for the same reason. Coaches may charge anywhere from $75-$600 per hour, while others prefer a flat fee per session or for a set number of sessions.
Financial advisors offer a few different types of payment plans, either fee-only, commission-based, or a combination of the two. For fee-only providers, the advisor will charge an hourly rate, such as $150-$300 per hour, or a rate based on the number of assets they manage, typically between 0.5% and 2%. Commission-based advisors receive payment from investment providers, by selling products to their clients.
If you feel stuck in a financial rut, unable to grow your savings, or reach major goals like buying a home, a financial coach may be your ticket forward.
Financial coaches can help their clients eliminate unhealthy money management habits and replace them with positive patterns and routines.
Your issue may be struggling to set aside money for retirement or maintaining a consistent budget. Maybe you’re a textbook shopaholic in need of strict boundaries. No matter your situation, a financial coach can provide some structure and guidance when you need it most.
Once you’ve discarded those negative habits and implemented new norms, they can step aside, leaving you on a new and healthier trajectory.
Splurging on an unplanned dinner out or a spontaneous vacation isn’t always bad, but your financial habits can impact your future and even your health if you’re not careful.
Let’s say your goal is to buy a house. You’ve opened a savings account and have saved some money over the years, but the progress has been slow and minimal.
Or, maybe you’re living paycheck to paycheck and can’t comprehend how to even begin saving on such a tight budget.
A financial coach can step in and evaluate your spending and saving habits with a fresh set of eyes. They can see opportunities that you can’t and can point out a path to achieving your financial goals.
Another serious issue that may require the assistance of a financial coach is when your finances are impacting your health and happiness.
Money is a major stressor for the vast majority of Americans. It can impact everything from your eating habits to your sleep (or lack of). In some cases, the anxiety you feel as a result of finances can even damage your long-term heart health.
If the thought of budgeting, or the weight of financial goals unmet, gives you anxiety or seriously hurts your health and wellbeing, consider contacting a financial coach for help. Don’t assume these issues will sort themselves out. Take action today for the sake of your health and your future.
If your finances were a patch of dirt in your backyard, and you wanted to turn it into a beautiful garden that provided tomatoes and carrots for your family, you wouldn’t start with watering. You would pull weeds, plant seeds, and make sure your soil has the proper nutrients to keep plants alive.
A financial coach is like your friendly neighbor with the green thumb who teaches you how to prepare that dirt patch for plants. An advisor is like the nifty irrigation system that provides consistent water to grow your wealth.
If you’re thousands of dollars in debt, a financial coach can help you replace your poor money practices, literally, with healthy ones, or wealthy ones. Or, if you need help building a budget and sticking to it, a financial coach can provide the accountability you need to finally make progress.
But if you’ve got thousands of dollars saved and don’t know what to do with it, you’re probably better off contacting an experienced financial advisor who can help you build and manage a solid investment portfolio and continue to grow your assets.
If what you need is a financial coach, it’s important that you select a professional with experience in the industry and, ideally, credentials to prove they know what they’re talking about.
Start your search for a financial coach on the Association for Financial Counseling & Planning Education® (AFCPE) website. AFCPE provides two recognized certification programs, equipping coaches with the Accredited Financial Counselor® (AFC®) designation or the Financial Fitness Coach (FFC®) designation. By limiting your selection to professionals who hold AFCPE certifications, you’ll feel confident hiring an expert you can count on to help guide you towards a healthy financial future.
For those in need of wealth management expertise, the Paladin Registry is a great places to shop around.
Their impressive platform begins by collecting some information about your finances and goals and then presenting three qualified professionals from their database for you to consider.
They do the backend research and suggest advisors best suited to your needs, so you can feel comfortable interviewing and eventually selecting one of the experts recommended. Best of all, the Paladin Registry walks you through the entire hiring process for free.
Financial coaches can provide an invaluable service to folks in need of money management basics, but they’re not right for everyone.
If you’ve accrued substantial savings and aren’t sure how best to maximize your wealth, consider a financial advisor who can manage your investment portfolio and provide a long-term relationship to grow your wealth. However, if what you need is a foundation to build on, a financial coach can teach you how to maintain a budget, eliminate debt, build your savings, and more. They also keep you accountable, to help you adopt a new trajectory towards a healthy financial future.
No matter which type of help you need, be sure to research thoroughly for financial experts who are experienced in the industry and have the education and credentials to prove it.
Source: moneyunder30.com