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Eligible Discover cardholders will save at the pump this summer and when they make purchases without swiping a card.

  • Gas stations (including public electric vehicle (EV) charging stations).

  • Digital wallets.

While gas stations return as a Discover bonus category for the 10th consecutive year, digital wallet payments like Apple Pay and Samsung Pay are making their second appearance. Be sure to add your eligible Discover card as the default payment method in your digital wallet so you don’t miss out on those extra rewards. Note that using digital wallets to make purchases at gas stations will earn only a total of 5% back (up to the combined spending cap).

Discover bonus rewards categories for 2023

Q1 (Jan. 1–March 31)

  • Grocery stores*.

  • Drugstores.

  • Select streaming services.

Q2 (April 1–June 30)

  • Restaurants.

  • Wholesale clubs.

Q3 (July 1–Sept. 30)

  • Gas stations.

  • Digital wallets.

Q4 (Oct. 1–Dec. 31)

TBD (In 2022: Amazon.com; digital wallets).

*The grocery stores category does not include grocery purchases at Walmart or Target or at other superstores or wholesale clubs.

🤓Nerdy Tip

For the first time in the past five years, Discover has elected not to release its entire 5% bonus calendar all at once in January, meaning cardholders must wait for categories to be revealed quarterly. The release of the full year’s bonus calendar had been a distinctive feature, making it easier for cardholders to time their purchases. But this move puts Discover in line with other 5% rotating-bonus-category cards, like the Chase Freedom Flex℠.

Bonus categories can be activated online at Discover.com, through the mobile app or by calling 800-347-2683. Bonus rewards will not be applied retroactively, and only qualifying purchases made after activation will earn 5% back.

The gas station category includes purchases inside or at the pump at standalone gas stations but may exclude stations affiliated with supermarkets and wholesale clubs. Public EV charging stations are included.

You’ll also earn 5% back when you use a digital wallet like Apple Pay or Google Pay to check out online or in store with your smartphone, tablet or wearable.

Cash back may be redeemed for a statement credit, direct deposit, gift card or charitable donation. Discover’s Pay With Cashback Bonus program also allows cardholders to use rewards to pay for merchandise with select merchants.

Source: nerdwallet.com

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If you owe creditors who keep calling asking you for money, you should think twice.  Not about paying.  But, about trying to negotiate your debt.

can you negotiate with collections

can you negotiate with collections

Before you hand them one penny, this is the time to put collections to work for you. Sometimes, you can cut the amount you owe by at least HALF just by offering a lump-sum payment. If that doesn’t work for you, consider negotiating a payment amount you can afford.  Of course, you need to make sure that the payment does not negatively affect your budget.

The one thing you must remember is that their debt is not your top priority. No matter what they say.

Read More:

HOW TO NEGOTIATE WITH CREDITORS

KNOW YOUR RIGHTS

There is a law called the Fair Debt Collection Practices Act (FDCPA).  This law provides rights to consumers regarding debt collection. The law also advises consumers as to the things which creditors and debt collection companies can and can not do.

Understanding and knowing these rights helps keep you in control and not falling victim to illegal practices. Things you need to know include:

  1. Debt collectors can not use the phone to annoy you. That means that they can not call you several times a day, all week long to try to collect the debt.
  2. They can not use vulgar language nor threaten you in any way. While they may get forceful, they can not they threaten to have you arrested, swear at you nor bully you. They also can not threaten you with violence. If they start to act this way, let them know that the way they are treating you is illegal.  Advise them that you will hang up and not speak with them until they can do so with respect.
  3. They must call during decent hours. Collection agencies are not allowed to contact you at inconvenient hours (such as before 8 am or after 9 pm or even on weekends). Also, they can not call you at your employer if you tell them that is not acceptable. If you have hired an attorney, then all calls must be directed to him or her. They are no longer allowed to contact you directly.
  4. They must disclose all of the details about the debt. When you receive a call, the company must let you know the name of the creditor.  They must also advise you of the amount of the debt.  Finally, they need to disclose the manner in which you can verify the outstanding balance.  If they do not do so on the phone, you must be notified in writing within five days of the initial call.
  5. They can’t threaten legal action (without permission). Your creditor MUST permit the collection company to threaten legal action. Most creditors do not want to even go that route due to the added expense it entails.
  6. Debt collectors can not falsely represent themselves. When contacted, collectors are not allowed to misrepresent themselves to get you to pay the debt. This can include claiming to be an attorney, government agency or even credit reporting agency.
  7. They cannot publish your name and debts. They may threaten that this information will be made public, but it will not. They can only report the details to the credit agencies.
  8. Your property can not be seized, nor wages garnished. They can not claim that this will happen to you. It can, of course, but only in the instance of actual legal action. This is something most creditors do not even want to pursue.
  9. Contact you once you have asked them not to. You can write to a debt collector advising them that they are no longer allowed to contact you. They are allowed to send a final letter confirming this.  Then, they can not contact you in any way, unless it involves legal action.

If you have an instance of any of these situations, you need to report the company immediately for unfair practices, which go against the law.

BE IN CONTROL

When you get a call from a debt collector, they are often pushy and demanding. Why? Well, they get a commission on the debt they collect. So, of course, they want to try to scare you into paying it all in full. Not only that, since they do not get any money until you pay, they will keep going on and on.

Also, keep in mind and know your rights (above) so that you can voice that to the agency if they start to push the limits. That alone shows them that you know what they can and can not do and that you will not be a victim.

Make sure that you inform them that you can not make the payment in full and there is no way that you can. This will open the door to allowing you to negotiate your debt.

NEGOTIATE LIKE A PRO

When you negotiate your debt, it is a great way pay less than what you owe! Once you know that the company is willing to negotiate the balance due, start by making an offer well below what you can afford. Doing so allows you room to increase what you will pay – without paying more than you need to. Then, do nothing.

Example:

YOU: “I will pay you $0.30 on the dollar?”
THEM: “We want $0.75 on the dollar.”
YOU: Silence. Say nothing. Wait.

Make them budge first. Once they come back with another lower offer, you now have the upper hand and are more likely to get a payment amount you can afford (perhaps even less than you want).

Why does this work? Debt collectors pay PENNIES on the dollar for debts. That means that they will make a profit on any payment made – even if it is 50% or less than the original amount owed.

GET EVERYTHING IN WRITING

Once you’ve agreed to an amount, it is essential that you get it all in writing. Keep detailed records of the call and the amount. Some of the information you should write down includes:

  1. Date.
  2. Time.
  3. Name of person (and badge number if applicable).
  4. Original debt owed.
  5. New agreed to terms.

The thing to keep in mind is that most debt collectors are not going to be in a hurry to get this to you. That means you may need to draft an agreement and mail it to them.

What should be in your agreement? You need to include all of the above details. It should also include wording advising that once you pay the debt, they agree to report that to all of the three credit reporting agencies. The agreement should also provide a time in which they must respond to dispute the terms and that failure to respond at all, means they agree with what you have sent to them.

Make sure you retain copies of any and all letters between you and the company. You need to have proof of the discussions should the need arise.

PAY AS AGREED

Once you have agreed to the terms, it is imperative that you pay as indicated. If they included a new monthly payment, make sure you pay on time.

If you do not pay on time or by the agreed upon date, you have instantly broken the terms of the agreement, and it can be considered null and void. Many times, you will not get the same deal if you try to negotiate again. In fact, they may not even agree to any lowered rate.

It is not fun to deal with collections, but you can do it. Just know your rights, and how to negotiate your debt and you’ll be in control of eliminating that debt once and for all.

how to get your debt reduced

how to get your debt reduced

Source: pennypinchinmom.com

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While the debate about cross-subsidization, the politicization of the agencies and whether we even need LLPAs rages on, we wanted to look at the practical implications of the FHFA courting borrowers at the bottom rungs of the pricing matrices and making it more expensive for other prospective borrowers. 

Are low-FICO, first-time homebuyers better off with a conventional mortgage and reduced LLPA fees, or an FHA loan with none at all? We spoke to multiple loan officers and Washington, D.C.-based think tank Urban Institute to hear their takes.

MIP cuts and LLPA cuts

Because an FHA loan requires lower minimum credit scores and a required down payment as little as 3.5%, they are especially popular with first-time homebuyers. While the FHA loan allows a borrower to put less money down and doesn’t come with LLPAs, that flexibility comes with a high upfront and annual costs in the form of mortgage insurance premiums (MIP). 

In March, FHA Commissioner Julia Gordon made it a little cheaper. She announced that the agency would be reducing annual mortgage insurance premiums by 30 basis points to 55 bps, reducing costs for already-stretched borrowers as home affordability hit an all-time low.

It’s not a huge cut, but it’s enough to tip the scales in favor of FHA loans for some borrowers even with the LLPA reductions on conventional loans, several LOs told HousingWire. Borrowers with low- and moderate incomes and lower FICO scores will still pay more for a conventional mortgage after factoring in PMI costs that are triggered for borrowers putting down less than 20%, the LOs said. 

“The real issue is that with these adjustments, these 660 FICO borrowers with 5% down, they’re going to end up going FHA because not only is their rate going to be higher on the conventional loan, their mortgage insurance costs are going to substantially higher than FHA,” a production manager in Northern California said. 

Of course, every borrower’s financial situation is a little different and the new LLPA changes will add borrowers for whom conventional lending is marginally more attractive than getting a FHA loan, said Janneke Ratcliffe, vice president of Housing Finance Policy Center at Urban Institute.

“That used to be [the case] for nobody with LTV above 95 based on our calculations, but now the people with the very highest credit scores will have a breakeven choice with FHA vs conventional GSE loans,” Ratcliffe said. 

For example, borrowers with credit scores of 760 and above and an LTV of over 95% will continue to be better off or basically breakeven between an FHA and GSE loan with a 35% private mortgage insurance (PMI), according to the Urban Institute’s analysis. 

“If you’re at 740 FICO and a 95% LTV, it’s a $5 difference,” Ratcliffe noted. 

The changes are marginal enough to be absorbed in a lender’s pricing strategy or other variables could make up for the difference, she explained. 

LLPAs are waived for Fannie Mae‘s HomeReady and Freddie Mac‘s HomePossible loan borrowers; and loans to first-time homebuyers with qualifying income that is or below 100% area median income (AMI) or 120% AMI in high-cost areas.

Excluding the first-time buyers who are waived from LLPA fees, no new groups of borrowers will get a clearly better execution with FHA after the changes.

Some will move to more of an “either way” place, so that lender decisions around pricing can more make the difference for these. “People should shop, right?” Ratcliffe added.

In 2022, only 7.6% of purchase loans that Fannie Mae closed were above 95% LTV, according to the Urban Institute. This category of borrowers has historically been the sweet spot for the FHA.

Brian Parkinson, loan originator at Alerus Mortgage pointed to the possibility of Fannie Mae and Freddie Mac trying to bridge the gap between FHA mortgages serving minority clients and conventional loans for lower credit score borrowers.

“We also find that FHA mortgages serve minority clients in a higher percentage than conventional mortgages for lower credit scores. I don’t know if Fannie Mae and Freddie Mac are trying to bridge that gap,” Parkinson said. 

There are various other reasons, besides pricing, why high LTV borrowers with high credit scores don’t take FHA loans, but many of them are better off after May 1, according to Ratcliffe.

“It’s all about (home) equity, that’s a big buzzword in Washington these days,” Bob Yopko, mortgage broker at First Equity Residential Mortgage, said.

But whether low credit score borrowers with a low down payment would be approved for a conventional loan by the GSEs is another question, Yopko noted. 

“They haven’t forgotten what they did in 2008, where basically, everybody could get a loan and they’re not doing that again. They’re trying to protect their portfolios and make good loans. At the same time, trying to be fair to first-time homebuyers. So it’s kind of a mixed message,” he explained. 

While FHA loans have favorable rates for borrowers, they are often shunned by listing agents in competitive markets — which in turn makes conventional loans more appealing to borrowers.

With the limited inventory, real estate agents are going to lean towards a $200,000 conventional loan rather than a $200,000 FHA loan “because of some of the ticky tacky things and FHA appraisers may call out,” Don Bleuenstein, president at Gem Home Loans, said.

With the changes hardly benefiting a new group of first-time borrowers, Parkinson noted this is when the loan officers’ skills and knowledge come in to figure out the best option for the borrower.

“All of this stuff has to be sifted through with the mortgage professional to figure out what’s the best program, and what program do we need to use to have a successful accepted purchase offer. That’s what gets tricky.” Parkinson said. 

Source: housingwire.com

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Mortgage rates surged closer to 7% this week, further worsening housing conditions for buyers.

The rate on the 30-year fixed mortgage increased to 6.79% from 6.57% the week prior, according to Freddie Mac, on expectations the Federal Reserve will hike interest rates again. For the past eight months, rates have stayed between 6% and 7% with few signs of significantly softening anytime soon.

Elevated rates — along with still-high home prices — have been a blow for homebuyer affordability and have convinced many homeowners to delay listing — worsening inventory conditions in a supply-starved market.

“Both buyers and sellers have backed off from the market because mortgage rates are so high,” Daryl Fairweather, chief economist at Redfin, told Yahoo Finance. “They’ve made homebuying more expensive. Homeowners who were able to lock in 3% mortgage rates a little over a year ago don’t want to give up those rates and are not selling.”

“So we’re seeing way fewer transactions this time of the year,” she added.

The dearth of deals was evident in other data this week.

For instance, the share of applications to purchase a home slid 3% last week from a week earlier, according to the Mortgage Bankers Association’s survey. Overall, buyer demand is 45% lower than the same week one year ago.

“Although there has been a steady flow of purchase demand around rates in the low to mid 6% range, that demand is likely to weaken as rates approach 7%,” Freddie Mac Chief Economist Sam Khater said in a statement. Khater noted that a “buoyant economy” has convinced many market watchers that more Fed hikes are on the way.

A separate study by real estate analytics company Altos Research found the number of pending sales that should complete in June and July sat at 398,000 last week, unchanged from the week prior. That’s even as inventory rose 2% or the week ending May 29.

“That could be a signal that some buyers froze as rates jumped,” Mike Simonsen, founder of Altos Research wrote in a blog post.

A home is offered for sale in the Bucktown neighborhood in Chicago, Illinois. (Credit: Scott Olson/Getty Images)A home is offered for sale in the Bucktown neighborhood in Chicago, Illinois. (Credit: Scott Olson/Getty Images)

A home is offered for sale in the Bucktown neighborhood in Chicago, Illinois. (Credit: Scott Olson/Getty Images)

Higher rates have also left a growing share of homeowners reluctant to list this spring. Those who have put their homes on the market may find they have the upper hand against buyers.

“We had a house on the market for only a couple of days and right off the bat we had four buyers through its first day listed,” Monte Miner, real estate agent at Ironwood Fine Properties, told Yahoo Finance. “That’s a good sign that the place is going to sell at or even above expectations, but buyers won’t get the opportunity to negotiate when competition is high.”

That’s if buyers can even find a house to purchase.

For instance, an index measuring the volume of signed contracts was unchanged in April from March, even though the spring is the busiest time to list and sell a home, according to the National Association of Realtors last week.

Similarly, the number of homes that went into contract this week was down almost 5% from the previous week and down 14% from the same time a year earlier, according to Altos Research.

“We know that demand for housing has outpaced supply all year. But mortgage rates really jumped this week … There are signals that some buyers put their actions on hold,” Simonsen wrote. “If rates stay … do the little green shoots of market strength quickly wither away?”

Gabriella is a personal finance reporter at Yahoo Finance. Follow her on Twitter @__gabriellacruz.

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Source: finance.yahoo.com

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Editorial Note: Intuit Credit Karma receives compensation from third-party advertisers, but that doesn’t affect our editors’ opinions. Our third-party advertisers don’t review, approve or endorse our editorial content. It’s accurate to the best of our knowledge when posted.

Have you ever gone over your budget only to find you’ve overspent on food? With food being the third-highest household expense behind housing and transportation, our food choices have a huge impact on our budget.

Learning how to budget groceries can help you save more to put toward your financial goals. Here are 28 ways to help you learn how to budget groceries.

1. Track current spending

Before you figure out what you should be spending on food, it’s important to figure out what you are spending on food. Keep grocery store receipts to get a realistic picture of your current spending habits. It might help to break down spending by category (via a spreadsheet or on paper), including beverages, produce, etc. Once you’ve done this, you can get an idea of where you need to trim down your grocery bill.

2. Allocate a percentage of your income

How much each household spends on food varies based on income and how many people need to be fed. Consider using our budget calculator if you’re not sure where to start. Try allocating 10% of your income to food as a starting point and then you can increase from there.

3. Avoid eating out

Recent data from the Bureau of Labor Statistics shows a 13% increase in food spending in the U.S. — a jump driven by rising purchases on dining out. Avoiding eating out where possible can help reduce your overall food spending. If you’re actively dating or enjoy restaurants with friends, be sure to factor eating away from home into your food budget — and stick to your limit.

4. Plan your meals

It’s much easier to stick to a budget when you have a plan. Plus, having a purpose for each grocery item you buy may help ensure nothing goes to waste or just sits in your pantry unused. Don’t be afraid of simple salads or meatless Mondays — not every meal has to be a gourmet experience.

5. Keep a fridge grocery list

Keep a magnetized grocery list on your fridge so that you can replace items as needed. This can help you buy food you know you’ll eat. Sticking to a list in the grocery store may help you stay accountable and not spend money on processed or pricey items.

6. Eat before you go to the store

If your mother gave you this advice growing up, she was onto something: according to studies, shoppers spend more when hungry. Eating before going to the grocery store may help you avoid tantalizing foods that can cause you to go overbudget.

7. Be careful with coupons

Getting 50% off ketchup is a great deal — unless you don’t need ketchup. Beware of coupons for items you don’t need. If the item isn’t on your list, you’re not saving at all, but rather spending on something you don’t truly need.

8. Embrace the bulk section

The bulk section of your grocery store may help you find inexpensive staples, discover new foods and bring variety into your diet. Take the time to compare the price of prepackaged goods versus bulk — bulk is likely cheaper.

9. Bring lunch to work

Picture this: you’re trying to stick to a food budget, and one day at work you realize it’s lunchtime but you forgot to pack a lunch. All the meal planning and smart shopping in the world won’t help if you don’t have food when you need it.

10. Love your leftovers

Instead of throwing your leftovers away, try to eat them to avoid wasting money. To keep things interesting, look for ways to repurpose foods — yesterday’s leftover taco meat can become today’s shepherd’s pie.

11. Keep an inventory

Keeping a list on your fridge of what you have on hand can help you avoid food waste and get creative when meal planning. And it’s a great way to get the most use out of grocery items that are sold larger quantities than you need for a single recipe. Not sure what to do with that giant bunch of celery or box of spinach you have left over from another recipe? Try out some online recipe blogs or sites that offer recipe ideas based off a few ingredients you input.

12. Freeze foods that are going bad

Another way to avoid wasting food is to freeze things that look like they’re about to go bad. Fruit that’s past its prime can be frozen and used in smoothies. Make double batches of soups, sauces and baked goods so you’ll have an alternative to ordering takeout when you don’t feel like cooking.

13. Use curbside pickup

About 29% of shoppers admitted that seeing an item that looked too good to pass up led to impulse purchases. Using curbside pickup can help prevent you from purchasing unplanned items.

14. Check the top and bottom shelves

Wise grocery stores know that eye level is where the most sales happen. In fact, consumers select about 80% more products at eye level than at the bottom shelf. So next time you’re out shopping, take a quick look up and down — you may find a better deal hidden out of sight.

Additional grocery saving tips

Need more ideas on how to save on your food bill? Here are some additional tips that can help.

  • Choose generic — One survey found that 50% of people said opting for generic products over name brand helped them save on groceries.
  • Drink more water — Recent data found that 17% of consumers cut back on purchasing beverages at the store due to rising inflation. Drinking more water may help you save what you would’ve otherwise spent on beverages.  
  • Pay with cash — Try going to the grocery store with cash — and only what you’ve budgeted for. Leave your credit or debit card at home. After all, you can’t spend what you can’t pay for.
  • Buy what’s in season — Food prices can vary depending on whether they are in season or not. When foods are out of season, they may be scarce — and therefore more expensive. Try to stick to buying foods that are in season.
  • Grow your own herbs — Herbs at your local grocery store might sometimes be expensive. Growing your own is one way to cut back on your grocery bill. 
  • Plan a meatless meal — Beef prices increased for three years straight from 2020 to 2022, and the USDA predicts other meat categories will rise in price in 2023. By planning a meatless meal every so often, you may be able to save some money on your grocery bill.
  • Buy cheaper cuts of meat — Not all cuts of meat cost the same. You may be able to save money by choosing chicken thighs over chicken breasts, ground chuck over sirloin and pork loin over pork chops.
  • Ask for a discount — This won’t always work, but if you notice your food is close to expiring, ask the cashier for a discount. You may be able to save yourself a few dollars. 
  • Learn how to preserve food — If you have some fruit that’s going bad in your home, you may be able to preserve it by making and canning jam. Hopefully the more food you can save in your home, the less you’ll need to buy at the store.
  • Keep a running tally while you shop — Jotting down the prices of items you put in your cart or quickly crunching the numbers in your phone’s calculator can help you stay more aware of how much you’re spending.
  • Buy canned food — Canned food is often less expensive than fresh foods, so buying canned could stretch your food budget.
  • Shop sales — If you notice a food you often eat goes on sale, stock up if you have room in your budget. While you may spend more than you normally would up front, you’ll save yourself from having to purchase the item at full price in the future.  
  • Use rebate apps — Some apps provide cash back on certain purchases. Check to see if the items you need to buy at your next shopping trip may qualify.
  • Sign up for your store’s loyalty program — Some grocery stores have points or loyalty programs that can provide you with extra discounts when you shop.

Bottom line

Sticking to a food budget can take planning and discipline. However, learning how to budget groceries by being resourceful and cooking healthily is a skill that can benefit you for years to come.

Earn cash back on select debit purchases with Credit Karma Money™ Spend.

Sourcing

Source: mint.intuit.com

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Mother depositing check on smartphone

One of my money resolutions is to switch banks. I’ve been a long-time customer of a big bank that, in recent years, has stood out among headlines that reveal sneaky and unethical business practices. That’s not the only reason I’m switching, but it does help me want to change. So, it has got me thinking bank vs. credit union?

Some people think credit unions aren’t terribly convenient — maybe they don’t have online banking, or maybe it’s hard to find an ATM when you’re traveling. But I’ve found that, despite the potential inconveniences, there are advantages to consider when it comes to a credit union. Here are a few things I’m keeping in mind as I make my decision.

Interest Rates

The main draw I’ve often heard about credit unions is they offer lower interest rates on loans and higher Datatrac analyzed the average interest rate differences between credit unions and banks. When it came to car loans, banks’ interest rates were about two percent higher. When it came to mortgages, rates were very similar.

Savings yields

The National Credit Union Administration also regularly analyzes the average rates of credit unions and banks. Their latest data (June 2013) found that the average “regular savings” rate for a credit union was 0.14 percent. The national average for banks was 0.13 percent.

But when it comes to choosing what works for you, you’re probably less interested in average and more interested in best. According to Datatrac, the “bank high” savings rate is 1.06 percent. The credit union high is 3.00 percent, which is awesome, but not necessarily accessible.

For example, I researched the credit unions in my community that I might be approved to join. On the high end, those credit unions offered an APY of 0.25 percent. My current bank offers 0.50 percent, and the bank I’m considering offers 0.85 percent. So while credit unions have the overall reputation of having higher interest rates, I guess it really depends on what’s available to you in your community. But with a credit union high of 3 percent APY, it’s definitely worth looking into.

If you’re getting a car loan, it’s probably best to go with a credit union. But I’m not a big fan of car loans in the first place (though I understand people have their reasons), nor do I think I’ll need one anytime soon. At this point in my life, I’m only concerned with interest rates when it comes to saving. On average, credit unions have better rates, but I’m not sure I have access to the high rates mentioned on these reports.

Related >> Why I plan on driving my car into the ground

Fees

Credit unions are known for having low to no fees on their accounts. And while they may offer free checking and even checking with interest, I’ve come across a couple of banks that offer the same thing. Many credit unions require no minimum to open; the bank I’m considering doesn’t require a minimum deposit either.

Related >> Checking Accounts

What’s more, according to a July 2013 article from the Washington Post, credit unions have been hiking up their overdraft fees faster than banks.

“The report shows that banks have held the median overdraft charge at $30 a transaction for the past four years, while credit unions have upped their price from $25 to $28 a transaction in the past two years.”

Related >> Getting Over the Overdraft: How I Started Saving

On the other hand, “fees are still lower on average at credit unions as of the first three months of 2013.” I’m not planning on using overdraft protection, so this doesn’t really affect me, but I thought it worth noting. An article from The Street also confirms the misunderstood stereotype that credit unions = no fees.

“Unfortunately, many who make the switch assume mistakenly that just because they’re banking with a credit union, they’re not going to be charged fees. The truth is that credit union members are just as vulnerable to fees as bank customers — a fact that is rarely shared or acknowledged.”

Most people with credit unions love them and attest that they don’t pay fees. And I’m not saying most banks don’t assess ridiculous fees, but it does seem like the whole “no fee” thing with credit unions might be a little overrated. I’m not knocking credit unions; I’m just saying, if I switch, I don’t think fees will play a huge part in my decision.

Business Model

Structure

Here’s where credit unions win, by far — the way they’re structured.

Credit unions have a reputation of being more personal and focused on community, and there’s a reason for that. When you open an account with a credit union, you become a shareholder. In fact, the operators of credit unions are members themselves. As Michele Lerner explained in a Get Rich Slowly question:

“First, unlike banks, credit unions are financial membership organizations. You don’t open an account at a credit union, you become a member and use your deposits to buy shares in the business.”

Credit unions are also community-focused because a lot of their members belong to a similar group. My old company, for example, had a credit union. My university had a credit union. In Los Angeles, there are a lot of entertainment-industry-related credit unions.

Theoretically, credit unions are private cooperatives that are owned and operated by their own members, the advantage being that local money stays within the community. Many people like the idea of that and, according to credit union members, it usually translates to a better “customer” experience.

Profit

While banks want to make money and appeal to investors, credit unions are not-for-profit, and their investors are their members. Any profit made from a credit union is supposedly returned to its members in the form of low interest rates or lower fees (although there’s been some recent controversy over the industry overusing these profits on advocacy efforts).

Overall, though, a non-profit structure usually translates to: a) not feeling like your financial institution is trying to take advantage of you, and; b) not seeing your financial institution’s name next to the words “crooked” and “discrimination.”

While they’re certainly not immune to questionable practices, the structure of a credit union seems to provide a better overall experience, and most credit union members attest to that.

Overall, I suppose it depends on what you’re looking for in a financial institution. Both options — credit union or bank — have their advantages and disadvantages. There’s also the long term to think about. You might feel that, in the long term, the structure of a credit union may serve you better. In the long term, rates may be significantly better. Either way, in making a decision, there are a handful of things to consider. Loans, rates, business model, fees and convenience are all factors that could affect one’s decision.

I’m still deciding, so I’d like to read your thoughts. Do you use a credit union or a bank, and what are some benefits and drawbacks of each?

Source: getrichslowly.org

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My shower is broken. The water comes out just fine, and it doesn’t leak. But the temperature control is busted, so it only comes out at one temperature: as hot as it gets.

Here’s the embarrassing part: It’s been like this for a year.

Frugal or Lazy?

When the temperature thingy broke (and here you see that household plumbing is not my strong suit — a year after this thingy broke, I still don’t know what it’s called), I made some small adjustments. I went downstairs right away and lowered the temperature on the water heater so that the water coming out would be hot but not scalding. That means no super-hot water anywhere in the house, but since we have small children I was keeping it on the low side anyway.

I let my husband know what had happened, and he declared that he would fix it himself. Household plumbing kind of is his strong suit; he fixed a similar problem with the shower at our old house. It’s kind of a difficult job, though, so I offered to have a plumber come in just to spare him the hassle. No, he insisted, he was up for doing it. Just not right away.

Then the task kind of got lost in his chore cloud. We grit our teeth and take hot showers. Every night when the kids take their bath, they make a game of dumping a few buckets of cold water into the tub to get it to the right temperature.

For months I’ve been embarrassed by this state of affairs. What kind of real grown-up lets a basic household repair go for a year? Clearly, my husband and I are being irresponsible ignoring the broken thingy.

Then yesterday morning, while taking a shower, I thought, “Maybe we’re not being lazy and irresponsible. Maybe we’re being frugal.” After all, the broken thingy isn’t getting any worse. It’s not leaking into the walls or damaging the house. It just makes showering extra hot. So far, we’ve done a fine job of making it do, leaving us free to put our money and time into other things.

Frugality is About Choices

Now, I’m not suggesting that frugality is about ignoring regular home maintenance. One of these days, we’ll fix the shower. (And probably soon now that I’ve confessed to the world that it’s busted.)

What I am suggesting is that frugality is about making choices. Every frugal person focuses on what’s important to them, and cuts away the excess to do so. In this case, experience shows that being able to adjust the water temperature in our shower isn’t very important to my family. We’d rather spend our weekends playing music and gardening than get into this messy, time-consuming repair project. I could hire a plumber to do it, but I’d rather spend the money on yoga classes or a family camping trip. These fun things might seem like trivial luxuries next to the shower repair, but the truth is they add more to my quality of life than being able to adjust the temperature in my shower.

I suspect that every frugal person makes some odd choices like this one.

J.D.’s note: I think so, too. Our clothes washer has a broken knob, for instance. Over the past five years, we — by which I mean Kris — have used a pair of pliers to select the laundry cycle. When we bought this house, the windows were caulked shut. They stayed that way until we could budget to fix them. And so on.

One of the tricks of frugal living is to recognize that with careful planning and savings, you can have anything you want but you can’t have everything you want. Making a commitment to conscientious, intentional personal money management means making some choices. You need to develop the skill of discerning what best serves your goals, and keeping your spending and attention focused on those things.

Another part of being frugal is being able to pare back your sense of what you need. My former, spendthrift self would have fixed the shower immediately, the next day, even if it meant paying the plumber with a credit card to do it. I’d have seen it as a need. I would also have needed to immediately replace several kitchen gadgets that broke over the winter, and to take my bike to the shop for a spring tune-up.

There’s nothing wrong with doing any of those things. It’s not spendthrift to fix a shower or replace a vegetable steamer. But nowhere is it written that they’re mandatory either. I’ve been getting clean just fine with a broken shower, cooking up a storm without those kitchen gadgets, and safely riding the bike that I maintain myself. Turns out, I don’t really need any of that stuff.

In contrast, I’ve been going to yoga classes three or four times a week. I paid for these with a deeply discounted Groupon, but I’ll probably buy a full-price membership when that runs out. Yoga is expensive. A few years ago I would have considered it an unaffordable luxury to pay for yoga classes. I could just do yoga workout tapes at home. Even a few months ago when I made it a New Year’s resolution to get back into yoga, I was unwilling to spend money on this studio. Now that I’ve tried it, though, I see what a big difference it makes to my quality of life. It seems like a bargain. I’m calmer and happier — more focused. Not only are those good things in themselves, but they support my career. I’m doing more and better writing because I’m so healthy. That translates to more money. I could argue that the yoga classes pay for themselves.

For me, this gets at the core of frugal living: realigning all my spending to fit with my values. At first glance, the shower seemed like an essential, basic home repair. For me, it turns out, fixing it is really a luxury. I haven’t done it yet because it doesn’t directly support any of my financial or personal goals. I won’t be a better writer after it’s fixed, nor will I be closer to living debt-free. As long as we can make it do, getting it fixed is really an extra. One we haven’t decided to indulge in yet.

How to Make Frugal Choices

The mechanics of conscious spending are pretty simple. Before you buy anything, ask yourself some simple questions:

  • Do I have the money to cover this expense, or would I be going into debt for it?
  • Does this expense forward my financial goals?
  • Can I get this need or desire met without spending money on it? Could I spend less money?
  • Does this money need to be spent now, or can it wait thirty days?

These questions can be very useful for curbing impulse buys and keeping you focused on financial goals. I’m finding they can also help with less obvious resource sinks.

In getting ready to plant my garden, for example, I found that several of my large pots had broken during the winter. My first thought was that I needed to replace them, right now. On second thought, I was able to dig up a bunch of old plastic storage bins that will serve perfectly well as replacement containers for my garden. They’re not as pretty as new flower pots, but they were already here. Now I’ve got less clutter, more money, and a garden that’s ready to plant.

The core motto of frugal living is “use it up, wear it out, make it do, or do without”. How you’ll choose to live that motto is up to you. It’s important to question every expense and ask yourself how necessary it really is. Sometimes, the answers will surprise you.

J.D.’s tangential note: You have no idea how excited I am that after all these years, I’m finally able to link to my chore cloud concept. The chore-cloud is well-known among my friends, who find it amusing, but I’ve never found a way to bring it up at GRS. Now my life is complete.

Source: getrichslowly.org

Apache is functioning normally

Now it’s time to take a look at the top mortgage lenders in Florida based on 2021 volume.

The Sunshine State is the biggest mortgage market outside of California, with about a 7% share of the national market.

In 2021, roughly $350 billion in home loans were originated there during what was a banner year for mortgage lenders.

Let’s take a look at which lenders dominated the state, broken down by different categories.

As I always say, biggest doesn’t necessarily mean best, but it’s good to know who the players are.

Top Mortgage Lenders in Florida (Overall)

Ranking Company Name 2021 Loan Volume
1. Rocket Mortgage $22.4 billion
2. UWM $18.6 billion
3. Wells Fargo $16.7 billion
4. Pennymac $10.6 billion
5. Chase $10.1 billion
6. Freedom Mortgage $8.7 billion
7. Caliber Home Loans $8.5 billion
8. loanDepot $7.4 billion
9. Newrez $6.9 billion
10. Truist $6.5 billion

Unsurprisingly, Rocket Mortgage was the top mortgage lender in the state of Florida last year, per HMDA data visualized by Richey May.

I say that because they are also #1 nationally and have been for a while now.

They are also the top lender in most states throughout the nation, other than a few like Minnesota and Nebraska.

Anyway, Rocket (formerly known as Quicken Loans) managed to fund $22.4 billion in Florida last year, which is about a six percent market share.

Per usual, they beat out their local rival United Wholesale Mortgage (UWM), which originated $18.6 billion.

Coming in third was Wells Fargo with $16.7 billion, impressive given their ongoing mortgage scandals.

Big correspondent lender Pennymac, which was created by Countrywide executives, came in fourth with $10.6 billion.

Completing the top five was Chase with $10.1 billion in funded home loans during the year.

Others in the top-10 list included Freedom Mortgage, Caliber Home Loans, loanDepot, Newrez, and BB&T Bank, now known as Truist thanks to their merger with SunTrust.

Unlike the top mortgage lenders in California, only three of the top 10 were depository banks, with the rest nonbank lenders.

That’s an interesting takeaway as lenders will face a much tougher year in 2022 thanks to higher mortgage rates.

Top Mortgage Lenders in Florida (for Home Purchases)

Ranking Company Name 2021 Loan Volume
1. UWM $10.3 billion
2. Wells Fargo $9.6 billion
3. Chase $5.5 billion
4. Caliber Home Loans $5.3 billion
5. Rocket Mortgage $5.2 billion
6. Pennymac $5.0 billion
7. CrossCountry Mortgage $4.5 billion
8. U.S. Bank $3.8 billion
9. Newrez $3.4 billion
10. Amerihome Mortgage $3.3 billion

Now let’s fine-tune the list to only look at home purchase loans, those reserved for home buyers as opposed to existing homeowners.

Topping this list was UWM, whose $10.3 in home loan volume beat out Wells Fargo’s $9.6 billion.

As seen above, that pair held the second and third spots in the overall list, with Rocket falling out of the top four on this list.

Chase gained a couple spots in the home purchase list, rising to third with $5.5 billion, well below the two heavy hitters.

Similar volume was seen by Caliber Home Loans with $5.3 billion, and Rocket Mortgage with $5.2 billion.

The rest of the best included Pennymac, CrossCountry Mortgage, U.S. Bank, Newrez, and Amerihome Mortgage.

This list will be increasingly important as the mortgage market shifts toward purchase lending.

For context, the refinance share of mortgage applications hit 29.6% last week, per the Mortgage Bankers Association. So lenders will want to focus on purchase business moving forward.

Top Mortgage Lenders in Florida (for Home Refinances)

Ranking Company Name 2021 Loan Volume
1. Rocket Mortgage $16.8 billion
2. UWM $8.3 billion
3. Freedom Mortgage $7.1 billion
4. Wells Fargo $6.5 billion
5. Pennymac $5.6 billion
6. loanDepot $4.6 billion
7. Nationstar (Mr. Cooper) $3.7 billion
8. Newrez $3.5 billion
9. Chase $3.5 billion
10. Caliber Home Loans $3.2 billion

While Rocket lost out to UWM in the home purchase lending list, they reclaimed the top position when it came to mortgage refinances.

The Detroit-based lender originated $16.8 billion in refinance loans in Florida last year, more than double UWM’s $8.3 billion.

In third was Freedom Mortgage with $7.1 billion, which was the top VA loan lender in the country.

Wells Fargo also managed to grab the fourth spot here with $6.5 billion, while Pennymac snagged fifth with $5.6 billion.

Others in the top-10 included loanDepot, Nationstar Mortgage (now Mr. Cooper), Newrez, Chase, and Caliber Home Loans.

Chase and Caliber were pretty low on the refi list, illustrating their focus on home purchase lending.

Top Mortgage Lenders in Jacksonville

Ranking Company Name 2021 Loan Volume
1. Rocket Mortgage $1.9 billion
2. Wells Fargo $1.9 billion
3. UWM $1.4 billion
4. Pennymac $992 million
5. U.S. Bank $953 million
6. Freedom Mortgage $921 million
7. VyStar Credit Union $715 million
8. loanDepot $631 million
9. Truist $559 million
10. Bank of England $544 million

Top Mortgage Lenders in Miami

Ranking Company Name 2021 Loan Volume
1. Wells Fargo $2.7 billion
2. UWM $2.5 billion
3. Chase $1.9 billion
4. Rocket Mortgage $1.8 billion
5. Caliber Home Loans $1.5 billion
6. Paramount Residential $1.2 billion
7. Bank of America $1.1 billion
8. Newrez $872 million
9. loanDepot $831 million
10. Citibank $778 million

Top Mortgage Lenders in Tampa

Ranking Company Name 2021 Loan Volume
1. Rocket Mortgage $3.4 billion
2. UWM $3.0 billion
3. Wells Fargo $1.9 billion
4. Caliber Home Loans $1.8 billion
5. Pennymac $1.7 billion
6. Freedom Mortgage $1.6 billion
7. Chase $1.2 billion
8. Truist $1.1 billion
9. Newrez $1.1 billion
10. loanDepot $1.0 billion

Should You Use One of the Largest Mortgage Lenders in Florida or Go Local?

Now aside from all the lenders mentioned, there were dozens more that originated several billion in home loans last year in the state of Florida.

That made them big names, despite not making the top-10 rankings. Examples include FBC Mortgage, The Mortgage Firm, and many others.

So if you want to get your mortgage from a big name, you could still do so without using one of the companies listed above.

At the same time, you might be perfectly happy going with a Florida-based credit union or a local mortgage broker.

At the end of the day, everyone has different preferences that will dictate where they get their home loan.

None of these options are necessarily better than others, they’re just different, as long as the company is financially sound and competent.

The only disservice you could do is not take the time to speak to several different lenders before deciding on one.

Comparison shopping is an absolute must when obtaining a mortgage, so be sure to put in the time whichever company you choose.

(photo: Marcin Wichary)

Source: thetruthaboutmortgage.com

Apache is functioning normally

New York is home to the incredibly adorable Gingerbread House, California flaunts its unique Flinstone’s House, so it was only natural to have Washington join the race for the country’s most unique, straight-out-of-a-cartoon home.

The contender: a charming fairytale cottage in Ocalla that looks like it’s ready to welcome its new Snow White (and however many dwarves she’d like to bring along.)

The storybook home, built in 1982, has 4 bedrooms, 4.5 baths, and encompasses approximately 2,800 square feet. Asking price: $925,000.

Among the quirks of this adorable Snow White cottage: there are no square corners in the house, the hand-built doors all boast extensive iron work throughout, and the walls appear to more like a magical cave. You even get a storybook tree house to keep your little dwarves entertained.

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Image credit: John L. Scott Real Estate
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Image credit: John L. Scott Real Estate
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Image credit: John L. Scott Real Estate

If moving to your own fairytale home is what you seek, make sure you check out the full details of the Snow White cottage home and get in touch with Rick Ellis, the listing agent with John L. Scott Real Estate.

But if you happen to be around $1 million short of that dream, here’s your chance to step inside one of the most unique storybook homes out there:

snow-white-cottage-washington-entrance
Image credit: John L. Scott Real Estate
snow-white-cottage-washington-kitchen
Image credit: John L. Scott Real Estate
snow-white-cottage-washington-living-room
Image credit: John L. Scott Real Estate
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Image credit: John L. Scott Real Estate

More quirky homes:

Brooklyn’s Century-Old Gingerbread House is NYC’s Most Adorable Home
The Oldest Ellis Island Ferry Makes One Hell of a Party Home
UFO-Shaped Palm Springs Home (Once Owned by Bob Hope) Finally Finds a Buyer
Is Mark Bell Prepping his Gorgeous Star Trek Home for Sale?

Source: fancypantshomes.com