The Public Service Loan Forgiveness (PSLF) program was established in 2007 to provide debt relief to nonprofit and government agency employees. The program’s goal was to forgive the student loans of borrowers after they made 120 qualifying payments (10 years of payments). However, the program’s approval rate was low, with only around 7,000 borrowers approved before 2021. The Biden administration announced temporary changes to the PSLF program last year, which helped borrowers get credit toward loan cancellation regardless of their federal loan type or payment plan. The temporary changes allowed borrowers to consolidate their debt before the end of the waiver in October 2022. As a result, more than 615,000 borrowers have received $42 billion in debt relief since October 2021.
The PSLF program remains available to public workers, and the Biden administration has scheduled improvements to go into effect on July 1, 2023. These changes include helping borrowers earn progress toward relief, simplifying employment criteria, and providing borrowers with a chance to correct account problems.
To qualify for PSLF, borrowers must be employed by a U.S. federal, state, local, or tribal government or not-for-profit organization, work full-time for that agency or organization, have Direct Loans (or consolidate other federal student loans into a Direct Loan), and make 120 qualifying payments. Borrowers can use the PSLF Help Tool to determine if they work for a qualifying employer, have eligible loans, and have already made qualifying payments.
It is important to note that PSLF relief is separate from President Biden’s student debt relief, which is still awaiting a decision from the Supreme Court. The Supreme Court is expected to rule on the President’s debt forgiveness program before the end of June.
Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.
Inside: Are you thinking about moving out? This guide will help you figure out how much money you need to save and where to find affordable housing. Will $5k be enough to move out?
Moving out for the first time is a huge milestone. It’s a chance to start fresh, create your own space, and live on your own terms.
But it can also be a daunting prospect, especially when you’re trying to figure out how much it will cost.
You want to know if $5,000 is enough to move out?
But there are a lot of factors to consider before making the decision to move out, and we’ve laid them all out for you in this ultimate guide.
So whether you’re just starting to think about moving out, or you’re ready to start packing your boxes, read on for everything you need to know about making the big move.
How much money do I need to move out?
Experts recommend having at least $6,000 to $12,000 saved up before moving out.
However, it’s possible to move out with as little as $5,000 if you focus on knowing how to live cheap and have a stable source of income.
However, if you don’t have a job before moving out, the need for a huge savings account is huge.
How much money should I have if I want to move out?
The minimum amount of money required to move out will depend on where you plan to live and your living expenses.
Shortly you will learn factors to include initial moving costs, rental deposit, and ongoing costs like rent, utilities, and food.
If you are looking to move out in an HCOL area, then you will need more than an LCOL city. At this point in your life, it is important to understand HCOL vs LCOL and how it affects your finances.
This post may contain affiliate links, which helps us to continue providing relevant content and we receive a small commission at no cost to you. As an Amazon Associate, I earn from qualifying purchases. Please read the full disclosure here.
What are the expenses you should consider when moving out?
Moving out on your own can be a daunting and expensive task.
There are many expenses to consider when budgeting for your new place especially when you are learning how to move out at 18.
This guide will help you estimate the cost of moving out and provide tips on how to save money.
1. Rent/Utilities
The cost of rent varies depending on the location and size of the apartment or home, with the median rental cost in the US being around $1700 per month.
Along with rent, utilities like electricity, gas, water, and internet can cost around $400 per month.
To save money on rent and utilities, consider finding roommates to split costs or negotiating with landlords for a lower rent.
Rent is your biggest expense when figuring out the ideal household budget percentages.
2. Rent Deposit
When renting an apartment, you will typically need to provide a rent deposit. This deposit is a sum of money paid upfront to the landlord to cover any damages or unpaid rent at the end of the lease.
The cost of a rent deposit can vary depending on the location and the landlord’s requirements, but it can range from $1,000 to $5,000 or one to three months of rent.
To save money on a rent deposit, consider looking for apartments with lower deposit requirements or negotiating with your landlord for a lower amount. A clean rental history will help you with this.
3. Moving Expenses
Moving out can be an expensive process, but with some planning and budgeting, you can keep costs under control.
When considering moving expenses, be sure to factor in the costs of moving truck, packing supplies, such as boxes and tape, as well as the cost of hiring movers
To save money on these expenses, try finding free packing materials on Buy Nothing groups or ask friends and family to help you move. You can also minimize your possessions and have less to move.
4. Renter’s Insurance
When moving out and renting a home or apartment, it’s important to consider getting a renter’s insurance policy to protect you from unforeseen events.
Home insurance, also known as renter’s insurance, is a special type of insurance policy that protects your property against losses or damage stemming from covered perils, including fires, storms, or theft. It can give you peace of mind and help you repair or replace your possessions in the event of unforeseen situations.
Insurance premiums are based on various factors, including where you live, how much you choose to insure, and your deductible. Your credit score and history may also affect your insurance rates.
5. Furniture and Appliances
When moving into a new home, it’s important to consider all the necessary expenses for furnishing the space. This includes appliances like a refrigerator, stove, oven, and microwave, as well as daily living items such as a mattress, table, and couches.
I remember when I moved into my first apartment by myself and there wasn’t a washer or dryer in the apartment. Just hookups. I had one of two choices: 1) rent from the management company for $35 a month or 2) buy new appliances with 0% interest for $35 a month. I choose option #2 and it saved me money in the long term.
To save money, consider buying used furniture from thrift stores or online marketplaces like Facebook Marketplace. You can also find plenty of free furniture if you are not picky.
By being thrifty and smart with your purchases, you can furnish your new home without breaking the bank.
6. Housewares
When moving out on a budget, it’s important to consider the essential housewares you’ll need to make your new place feel like home. Here’s a list of must-haves and their estimated costs:
By prioritizing these essential housewares, you can make your new place feel like home without breaking the bank.
Don’t forget to check out thrift stores and Facebook Marketplace for gently used furniture and household items. With a little creativity and resourcefulness, you can furnish your new home on a budget.
7. Internet and Phone Bills
The average cost of internet and phone plans varies depending on the provider and the plan you choose. However, you can expect to pay around $50 to $100 per month for internet and $40 to $80 per month for a mobile phone plan. In addition, there may be additional fees, such as equipment costs or activation fees, which can add up quickly.
To minimize these expenses, consider bundling services with one provider. Many companies offer discounts for bundling internet, phone, and cable services.
8. Credit Card Payments
If you thinking about moving out and are currently swaddled in debt, then you probably don’t have enough money to move out. If you have high-interest credit card debt, prioritize paying it off before moving out.
Automating savings on essential bills using Truebill can also help you manage your credit card payments while covering the costs of moving out.
Additionally, ensure that you have an emergency fund and enough money to stay a year to handle unexpected expenses.
Things may get harder if you have to pay for college without help from parents.
How to calculate your moving out budget
Moving out on your own requires careful planning and budgeting.
To calculate your moving-out budget, start by determining your monthly expenses once you move out. Make sure to include the factors discussed above.
Then, decide on your target move out date.
Now, figure out how many months you have to save.
For example, if your target move out date is in 6 months and you need to save $5,000 to cover your expenses, you’ll need to save about $833 per month.
Additionally, create an emergency fund to cover unexpected expenses such as medical bills or car repairs. Aim to save at least 3-6 months’ worth of expenses in your emergency fund.
By creating a detailed monthly budget and sticking to it, you can ensure that you can afford to live on your own and achieve your goal of moving out.
Tips and tricks on how to move out
So, you’re finally ready to move out and start your life as an independent adult.
But before you can start your new life, there are a few things you need to take care of first – like, you know, finding a place to live and figuring out how to pay for it.
Learn the lessons from those who did not move out with enough cash – like me.
Tip #1: Create a Budget and Stay Within Limits
Moving out with only $5000 can be challenging, but creating a budget and sticking to it can make the process much easier.
To start, subtract your monthly bills from your monthly income to determine your basic budget.
For instance, if you make $2500 per month and pay $1500 for rent and bills, you have $1000 left for living expenses.
Allocate $400 for groceries and other necessities, $200 for transportation, and $100 for utilities.
This leaves you with $300 for entertainment and other non-essential expenses.
To stay within your budget, consider using a budget binder to track your income and expenses.
Be mindful of living within your means and avoid overspending by resisting the temptation to spend your first paycheck on new household items or entertainment. Instead, opt for more affordable options such as walking around your new neighborhood or having a picnic in the park.
Tip #2: Reduce Expenses Where Possible
One of the hottest topics is becoming frugal green. To save money and the environment at the same time.
When it comes to furniture, try buying used or refurbished items or borrowing from friends and family. Additionally, cutting back on unnecessary expenses such as dining out and entertainment can free up more money.
By being resourceful and creative, it is possible to move out on a budget without sacrificing quality or comfort.
Remember to allocate 50% of your monthly pay towards necessary expenses, 30% towards things you want, and 20% for debt repayment and long-term savings.
Tip #3: Look for Low-Cost Rentals
Finding low-cost rentals can be a challenge, but there are several options available to those who are willing to be flexible and creative.
Renting a basement suite or studio apartment can be a more affordable option.
Consider couch surfing, subletting, or home-sharing arrangements.
Home-sharing can be particularly attractive as it allows you to pair up with an elderly homeowner who needs a little extra help in exchange for low rent.
Find a tiny home rental.
If you don’t mind sharing the space, you can also consider getting a roommate or looking into pod shares. Pod shares are co-living spaces where individuals rent a bed in a shared room, with access to other community spaces like a bathroom and kitchen.
Become a housesitter and be paid to move out. Learn more with Trusted Housesitters.
With a little bit of research and creativity, it is possible to find low-cost rentals that fit your budget and lifestyle. Remember to determine exactly how much you can spend on rent and be open to alternative housing solutions to help keep your costs at a minimum.
Tip #4: Look Into Getting Renters Insurance
When renting you are more than likely going to live closer to others, which means more things can go wrong. Don’t skip out on renter’s insurance, as it can provide the peace of mind and protection you need as a first-time renter.
Without renter’s insurance, unexpected disasters such as fires, storms, or theft can leave you with thousands of dollars in damages that you would have to pay out of pocket.
Renter’s insurance typically costs around $20 per month and can save you a lot of money in the long run. Some affordable options for renter’s insurance include Lemonade, State Farm, and Allstate.
It’s important to shop around and compare policies to find the best one for your needs and budget.
Tip #5: Plan for Emergencies and Unexpected Expenses
It is crucial to plan for emergencies and unexpected expenses.
Start by setting aside a minimum of $1000 for an emergency fund.
Ideally, you should aim to save at least three to six months of living expenses in a rainy day fund. Remember, having a contingency plan and emergency fund can provide peace of mind and protect you from financial hardship.
Tip #6: Start Saving for a Security Deposit
Remember to prioritize saving for a security deposit by setting a specific savings goal and putting aside a portion of your income each month before you move out!
With dedication and discipline, you can reach your goal and move out with confidence.
More than likely, if you are a good tenant, you should get your full security deposit back after your lease is over.
Tip #7: Start a Side Hustle
Starting a side hustle can be a great way to earn extra money while still maintaining your full-time job. You can earn extra income through various side hustles depending on your skills and interests.
The most common side hustles are online jobs, such as transcription, virtual assistance, proofreading, blogging, freelance writing, data entry, graphic design, and web design. These jobs are flexible and eliminate the need for driving anywhere, requiring only a laptop or computer and a good internet connection.
In fact, learning how to make money online for beginners is a trending topic.
As you start your side hustle, put in as much time as you have available to maximize your earnings. Remember that a side hustle is unlikely to replace the need for a real job, but it can provide a great way to earn extra money and pursue your passions.
Tip #8: Plan Ahead and Create a Timeline
When planning to move out on a budget, it’s important to create a realistic timeline.
Start by mapping out all the expenses you’ll need to cover, such as rent, utilities, food, and transportation. Along with how much money you have already saved for unknown expenses.
Stay organized by keeping a checklist of everything you need to do and when it needs to be done. Don’t rush the process – take your time and make sure you have everything in order before making the big move.
Remember the millionaire quote, failing to plan is planning to fail, so take the time to plan ahead and create a realistic timeline.
Is 10000 a good amount to move out with?
According to various sources, $10,000 is generally considered enough to cover moving out expenses and leave room for emergencies.
However, the actual cost of moving out can vary depending on location, rent prices, and cost of living.
Learn how to save 10000 in a year!
FAQ
There are a couple of different ways to save more money including:
Cut back on frivolous expenses like eating out and buying new clothes.
Sell anything you have that you don’t want or need on websites like Craigslist, Facebook Marketplace, Depop, or eBay.
Consider getting an extra part-time job or side hustle to increase your income.
When it comes to furnishings, be thrifty by asking friends and family if they have anything extra they’re getting rid of or checking out second-hand or discount stores.
Set saving goals and track your expenses using a spreadsheet. That will give you a clear picture of what is and is not possible.
Renter’s insurance is highly recommended, and in some cases, required by leases. It provides protection against unforeseen disasters such as fires, storms, or theft that can damage or destroy your possessions.
While it may seem like an unnecessary expense, it is usually affordable and can save you a lot of money compared to paying out of pocket for damages.
Not having renters insurance can leave you vulnerable to unexpected expenses and potential financial ruin.
You should not spend more on your rent payments than you are comfortable.
Just like with getting a mortgage, you should spend no more than 30% of your take-home pay on rent payments.
You don’t want to be stressed about finances, so you should set a realistic budget for rent that allows you to comfortably cover all of your expenses while still having some money left over for savings.
So, is 5000 enough to move out?
It really depends on your situation.
If you’re moving to a cheaper area and don’t have many expenses, you might be able to make it work.
However, if you’re moving to a more expensive city or have a lot of bills, you might need to save up more money.
When determining how much money is needed to move out, there are several factors to consider, which we covered above. These include where you plan to live, your living expenses, initial moving costs, ongoing costs, and emergency funds.
It’s essential to have a budget and do the math to determine the minimum amount required for a smooth transition to independent living on a tight budget.
Ultimately, it’s important to do your research and figure out what’s best for you.
Know someone else that needs this, too? Then, please share!!
Mortgage rates aren’t so low these days. In fact, they’ve basically doubled since early 2022.
While this clearly isn’t great news for aspiring home buyers or those looking to refinance, it has opened the doors to some creative solutions.
Lately, the temporary buydown has taken center stage after being a very niche product.
And many home buyers are opting to pay discount points at closing to lower their rate.
The question is do you want to permanently buy down your rate, or only do so temporarily?
Temporary vs. Permanent Mortgage Buydowns
First, you need to know the difference between a temporary buydown and a permanent buydown.
Permanent Buydown (Paying Points at Closing for a Reduced Rate for the Life of the Loan)
The permanent buydown involves paying discount points at closing to lower your mortgage rate for the life of the loan.
For example, say you’ve got a $500,000 loan amount and are offered a rate of 6.5% on a 30-year fixed mortgage with no points.
That would result in a monthly principal and interest payment of $3,160.34.
You’re not too impressed because you’ve seen advertised rates in the 5% range and so you inquire about that.
The loan officer or broker explains that you can get a rate of 5.75% if you’re willing to pay two discount points at closing.
You’d owe $10,000 at closing to buy down the mortgage rate but you’d have that rate locked in for all 30 years.
The payment would drop to $2,917.86, representing savings of nearly $250 per month. Not bad. But you still need to recoup your $10,000!
Temporary Buydown (Receiving a Reduced Mortgage Rate in Years 1-2 Only)
Then there’s the temporary buydown, which as the name implies, is temporary. That means your mortgage rate will only be lower for a short period of time.
In most cases, we’re talking the first one or two years of your loan, which will likely be a 30-year loan term.
So for years 28 through 30, the temporary buydown will do you no good. And perhaps worse, the mortgage rate will return to what it was supposed to be, sans buydown.
For example, if you elected to use a 2-1 buydown, it would temporarily reduce your interest rate by 2% in year one and 1% in year two.
If the note rate were 6.5%, you’d enjoy a rate of 4.5% the first year and 5.5% the second year. But after that the savings would end.
You’d then be on the hook for the full 6.5% mortgage rate, which could create some payment shock.
By shock, I mean making a higher payment than what you were used to. After all, it’s easy to get used to a lower monthly payment, then feel blindsided when it increases.
As a real-world example, imagine if the loan amount were $500,000. The payment would rise from $2,533.43 to $2,838.95 and finally to $3,160.34.
The saving grace is that it’s somewhat gradual because the rate is reduced 2% in year one, but just 1% in year two.
That way the jump in payment isn’t as drastic. Still, it’s a very temporary solution to lower payments.
The Decision Might Depend on Where Rates Go Next (And Where You Might Go!)
$500,000 Loan Amount
Temporary Buydown
Permanent Buydown
Mortgage Rate
4.5% in year one, 5.5% in year two, 6.5% thereafter
5.75% for the life of the loan
Cost of Buydown
$10,000
$10,000
Monthly P&I in Years 1-2
$2,533.43 in year one, $2,838.95 in year two
$2,917.86
Monthly P&I in Years 3-30
$3,160.34
$2,917.86
Now that we know how each type of buydown works, we can discuss which might be better suited for certain situations.
Most proponents of the temporary buydown point to the elevated mortgage rates currently on offer.
To that end, they see it as a bridge to a lower mortgage rate in the near-future once interest rates come back down.
They argue you’ll only need it for a year or two before rates come down and you get the opportunity to apply for a rate and term refinance.
Additionally, you only pay for what you’ll actually use (the temporary buydown funds are put in a buydown account and are typically refunded if you sell/refi before they’re exhausted).
On the other hand, the permanent buydown could result in paying for something you don’t actually use.
For example, imagine if you pay two points at closing ($10,000 in our example), and then rates unexpectedly plummet.
All of a sudden you’re in the money to refinance, but you’re hesitant because you paid those non-refundable points upfront.
If rates fall enough, say to 5%, you’d likely need to eat that cost and go for the refinance to save even more.
If mortgage rates don’t fall dramatically, you could still lose out if you turn around and sell your property before breaking even on the upfront cost.
At that point, the bought-down rate will do you no good either. So you really need to think about your expected tenure in the home (and the loan) before paying points for a permanent buydown.
Can You Finance Mortgage Points?
For the record, there’s also the financed permanent buydown mortgage, which allows you to roll the points into the loan amount.
Instead of a $500,000 loan amount, you’d wind up with a $510,000 loan amount in our example. But the lower interest rate would still equate to a cheaper payment.
It could even increase your purchasing power at the same time, allowing you to buy more home.
While the financing aspect can reduce your cash burden at closing, it still leaves you in a pickle if you refinance or sell shortly after.
You’re stuck with a larger loan amount if you refinance or less proceeds if you sell. So not totally ideal either if you don’t keep the home/loan for a long period of time.
Which Is the Better Option?
To sum things up, be sure you understand the difference between a temporary and permanent buydown to ensure you aren’t paying extra for what you may not use.
Or perhaps buying a home you might not be able to afford at the actual interest rate!
For those who plan to stay in their home awhile, the permanent buydown could make more sense.
But this assumes mortgage rates don’t fall dramatically. Because if they do, a refinance would likely be in the cards.
Conversely, if you expect to sell or refinance sooner rather than later, the temporary buydown could be more favorable.
It reduces the chances of leaving money on the table if you don’t think you’ll hit the break-even period.
Of course, if rates don’t fall, or even rise (and you don’t sell), you might have wished for the permanent buydown.
If you have someone counting on you financially – or even if there is someone in your life who may be required to pay off your debts and your final expenses in case of the unexpected – then you likely need to have life insurance.
You can use life insurance proceeds for any number of circumstances, such as paying off a home mortgage and credit card debt, as well as replacing lost income. Replacing lost income ensures loved ones can continue to pay their everyday living costs, in turn, keeping those you care about from financial hardship.
When you are shopping for life insurance, you want to make sure that you choose the right type and amount of coverage for your specific needs. You should also ensure that the life insurance carrier you obtain the policy from is reliable and stable financially so that your loved ones can be more assured that they will get the funds that are owed to them. One insurer that fits these criteria is the Baltimore Life Insurance Company.
The History of The Baltimore Life Insurance Company
The Baltimore Life Insurance Company was initially founded back in 1882, as The Baltimore Mutual Aid Society of Baltimore City. Five men began the company with a starting sum of $260.93 in company asset. At that time in U.S. history, many people purchased life insurance coverage so that they or a loved one would not have to buried in a potter’s field, as versus replacing lost income of a breadwinner.
While it took several years for the company to start growing, by the year 1900, it was starting to pick up steam. At that time, the company’s name was also changed to The Baltimore Life Insurance Company of Baltimore City.
Over the years, the Baltimore Life Insurance Company has held steady through several recessions, and even depressions, in the United States. But it has persevered. Today, Baltimore Life Insurance Company insures more than 300,000 policy holders – both families and businesses – in communities across the country.
With its home office now located in Owings Mills, Maryland, the Baltimore Life Insurance Company operates in 49 of the U.S. states, and in the District of Columbia. The products and services of the Baltimore Life Insurance Company are marketed through 13 different career agency sales groups that operate in Maryland, Pennsylvania, Ohio, South Carolina, and West Virginia, as well as through an independent sales division.
The company’s independent marketing organizations’ ability to develop strong relationships with clients is the key to the success of clients as well as the insurer. To achieve this, the Baltimore Life Insurance Company offers extensive support, such as:
A competitive product portfolio
An electronic application and underwriting process (known as INSpeed)
Stellar customer service
The key market segment that the company targets is those who are in middle-class America.
The Baltimore Life Insurance Company Review
As of year-end 2016, the Baltimore Life Insurance Company had invested assets of nearly $1.2 billion – which equates to approximately 4 percent more than year-end 2015, and total assets of $1.241 billion. The company’s surplus stood at more than $81 million, which is a significant increase over the year prior.
The company also increased its new business sales in 2016, by 8 percent over its 2015 figures. Given its normalized sales and its death claims, the Baltimore Life Insurance Company continues to demonstrate positive operating income.
Today, just as it was when the company began in 1882, the Baltimore Life Insurance Company serves the mutual interests of its policyholders, its agents, its employees, and the communities around it. Commitment to excellence guides the company’s actions to the following:
Financial discipline
Making a positive difference
Integrity and respect
Openness and honesty
The Baltimore Life Insurance Company serves in some ways, including through sponsorships and employee volunteerism. Just some of the charities the company supports include the United Way and the Community Grants Program, as well as regular blood drives via the Red Cross.
Insurer Ratings and Better Business Bureau (BBB) Grade
Based on the company’s financial stability, and its ability to pay out its policyholder claims, the Baltimore Life Insurance Company has a rating of B++ (Good) from A.M. Best Company. This rating is fifth out of a possible 16 ratings.
Also, even though the Baltimore Life Insurance Company is not a Better Business Bureau (BBB) accredited company, the BBB has given this insurer a grade of A+. This is on an overall grading scale of A+ to F. Over the past three years, the Baltimore Life Insurance Company has only had to close out three customer complaints through the Better Business Bureau (and only one of these was in the past 12 months). All three of the complaints centered on problems with the company’s products and services.
Life Insurance Coverage Offered Through The Baltimore Life Insurance Company
The Baltimore Life Insurance Company offers a long list of personal life insurance options to choose. These can help to address both individual and family needs. These policy offerings include the following:
Secure Solutions Protector – Level Term Life Insurance – The Secure Solutions Protector level term life insurance coverage offers initial level premium periods of 10, 15, 20, or 30 years. After that, the policy may be renewed on an annual basis. All of the death benefits and the premiums are fully guaranteed to the insured’s age 100.
Home Secure – Simplified Issue Level Term Life Insurance Coverage – This plan provides both a death benefit that can be used by beneficiaries, as well as the option for living benefits, which can be applied if the insured becomes disabled or is diagnosed with a terminal illness. These living benefits may also be used if the insured is confined to a skilled nursing home facility. Also, this plan has a return of premium option.
Secure Solutions Advantage – Whole Life Insurance – This whole life insurance policy offers guaranteed cash values, along with a level death benefit. The policyholder may also receive dividends from the company to take as cash, or to put towards the purchase of additional life insurance coverage.
Silver Guard I, II, and III – For those who are between the ages of 50 and 80, final expense life insurance protection may be necessary. The Silver Guard plan can provide those funds. And, once qualified, as long as the premium remains paid, the plan will stay in force.
Lifetime Navigator – Universal Life Insurance – The Lifetime Navigator universal life insurance plan combines the affordability of permanent life insurance, flexible premiums, and a built-in lifetime insurance protection guarantee feature. For those who are seeking long-term protection with a competitive premium cost, this could be a viable option.
Generation Legacy – The Generation Legacy allows the transfer of funds from non-qualified annuities and other qualified plans, and offers an easy, tax-efficient way of passing a much later gift from these proceeds to the insured’s loved ones.
Secure Solutions – Single Premium Whole Life Insurance – The Secure Solutions Single Premium Whole Life insurance plan allows the transfer of cash funds such as money market and CD accounts. Plus, if the insured is diagnosed with a terminal illness, he or she may access the policy’s living benefits for paying their medical costs, or any other financial need that they see fit.
Critical Illness Insurance – The critical illness coverage from the Baltimore Life Insurance Company provides for medical expenses that are associated with the major critical illnesses, such as cancer, heart attack, kidney failure, major organ transplant, and stroke. This plan provides a cash benefit that can be used for costs that are not typically covered by regular health insurance policies such as home health care, experimental medical treatments, copayments and deductibles, and the lost income of a spouse or other caregiver.
Other Products and Services Offered
In addition to the life insurance coverage products that are offered via the Baltimore Life Insurance Company, there are also other products and services that can be obtained through this insurer. These include the following:
Retirement Annuities – The annuities that are offered by the Baltimore Life Insurance Company include options such as flexible premium retirement annuities (FPRAs), single premium deferred annuities (SPDAs), and single premium immediate annuities (SPIAs). All of these financial vehicles can help to ensure that a retiree will have an income for a set amount of time in the future.
Workplace Solutions – Baltimore Life Insurance Company works with business owners to help provide voluntary supplemental benefits for better meeting the needs of employees and their loved ones. These solutions include a permanent whole life insurance product, critical illness insurance coverage, disability income protection, dental insurance, long-term care insurance, personal major medical coverage, and more.
Financial Needs Analysis – The Financial Needs Analysis, or FNA, can help clients to set financial goals, prioritize them, and initiate a plan of action. The FNA should ideally be reviewed on a regular basis.
Prescription Savings Program – The Baltimore Life Insurance Company offers the ScriptSave Value Program that can help individuals and families to save money on necessary prescription medications. Both name brand and generics are eligible for this savings program.
Personal Planning Guide – Although nobody wants to dwell on it, there can be unexpected expenses thrust upon loved ones when an individual passes away. But, by going through the personal planning guide, individuals and families can plan for such costs in advance, and can often avoid having to dip into savings or other assets to pay these expenses.
Grants Program – For over fifteen years, the Baltimore Life’s Community Grants Program has helped many organizations in the communities where the company’s employees live and work.
Identification Program – As a community service, Baltimore Life Insurance Company offers several ID card programs to local groups and organizations. These programs can enhance the safety of the communities where the company serves. These cards include Child ID and Youth SportSmart cards, as well as medical emergency cards.
How to Find the Best Life Insurance Premium Quotes with Baltimore Life Insurance Company
If you have been looking for the best life insurance premium quotes on coverage from the Baltimore Life Insurance Company – or from any insurance provider – it is typically recommended that you work in conjunction with an independent life insurance agency or brokerage that has access to many different insurance carriers. In doing so, you will be better able to compare, side-by-side, the plans and the premium prices of different options, and from there you can decide which one will be the best for you and your specific needs.
When you are ready to move forward with comparing available life insurance options, we can help. We are an independent insurance broker, and we work with many of the top life insurance carriers in the industry. We can provide you with all of the important information that you will need for making a well-informed decision – and we can do so right from your computer. If you are ready to begin the process, then all you have to do is just simply fill out our quote form.
We understand how overwhelming it can seem when you are in the process of shopping for life insurance. There are many different policies and companies to choose from – and you want to be sure that you are moving in the right direction. Our life insurance experts can get you through this process easily, though. So, contact us today – we’re here to help.
Mike and Georgia had looked for six months before they found their perfect townhome. Like many buyers, they were more worried about the sellers accepting their offer than they were about investigating the Homeowners Association (HOA). Turns out, the HOA almost ruined the deal. Because the HOA had let their FHA approval lapse, Mike and Georgia were not able to go with an FHA loan. When they switched to a conventional loan, they had to drain their savings in order to qualify for the higher debt-to-income ratios. At this point, they took a more careful look at the HOA’s meeting notes and were alarmed to read that roads would soon need major investments and that HOA fees had been rising higher and faster than local rents for the past five years. The entire scenario was a nightmare, costing Mike extra time and money—and he now gets to pay the association a pretty penny every month for the hassle.
HOAs aren’t usually top of mind when you’re looking to buy a home. In fact, HOAs can be completely overlooked until you learn that your dream house comes with one.
If you’ve carefully figured out just what you can afford to spend every month on a mortgage and then get hit with the added expense of an HOA, you may find your perfect home suddenly out of reach. But all the HOA news isn’t bad. Sometimes the benefits of an association can make homeownership more manageable—especially if you’re used to apartment or condo living.
Whether an HOA is part of your home shopping wish list or not, here’s everything you need to know to make a smart decision when it comes to joining an HOA.
What is an HOA and why do they exist?
One Salt Lake buyer, Kip. A., shared this insight, “HOAs are meant to ensure that a community maintains a good standard of upkeep and generally do a good job at that. Some HOAs might include lawn care, snow removal, and community amenities such as a clubhouse or pool.”
Homeowner associations are legal entities that exist to govern a planned community like a subdivision or apartment complex. HOAs ensure that certain rules and regulations (like what color you can paint your front door) are followed, and usually take responsibility for maintaining common areas like parking and sidewalks. An HOA will typically take care of at least some of the landscaping and exterior home maintenance.
As Kip noted, they can also provide community amenities like a pool, fitness center, and park areas. In some instances, HOAs provide road and waste management to areas that are outside city service areas. HOAs are funded by membership fees that are required to live on the property. Fees can range from $75 to more than $400 per month, depending on the neighborhood and the services provided.
Things to watch out for when it comes to an HOA
If you fall in love with a home that has an HOA, this is your must-do list before putting in an offer.
Dig into the fees: Find out what the current fees are, what they cover, and how often you can expect increases. Most HOAs in Utah have some limits on how much fees can be increased without homeowner approval. However, the board can usually approve a minimal increase without asking for input or taking a homeowner vote.
Verify what your fee covers: Be very specific when you look into what your HOA fee covers and what it doesn’t. If landscaping is included, find out the specifics—how often is the lawn mowed and edged? Is tree and hedge trimming included? What if you have a broken sprinkler? Verify policies for snow removal, waste and recycling, and which portions of your home are covered for repair under the HOA’s homeowners insurance policy.
Ask about big projects: HOAs need to maintain things like roofs, fences, and community amenities like swimming pools. Find out if any big projects are on the horizon and what the costs look like. Sometimes HOAs will impose a special assessment on top of your monthly fees in order to pay for something big like re-tiling the pool.
Read the minutes: HOA meeting minutes are public and available to all homeowners. Ask to review recent minutes, which should include the latest financials. Look for any complaints that seem consistent and note outstanding HOA fees from owners who are in arrears. The minutes should also include how much money is currently in the reserve account for emergencies and big projects. This can give you a clue into the health of the community and the potential for extra fees and increases.
Study the CC&Rs: The HOA governs the CC&Rs (Covenants, Conditions, & Restrictions) of the community. These are the rules that let homeowners know what modifications are allowed (painting, shutters, etc.) and what is not allowed. Some communities have liberal policies and others are highly restrictive, not even allowing wreaths on front doors or more than one small pet. Owners are fined if they violate the CC&Rs, so it’s highly important to understand what they are and whether or not you can live with them.
Life with an HOA… advice from Homie buyers and sellers
Many Homie buyers and sellers have lived with HOAs—and some have passed on a house because of the HOA—and wanted to share their experiences to help other home buyers.
Rob T. warns homeowners of the costs of an HOA over time, “Make sure that you understand the long-term costs of an HOA and consider if they are providing value equal to that cost. Since you are paying them monthly, make sure they doing their job. HOA‘s can be hit or miss. Some provide great value while others create huge hassles. Where possible, check with current residents in the area to see what they say about their HOA before you buy.”
Justin P. shared why he likes his HOA, “I like having an HOA to protect my property value from gross negligence or outrageous and inconsiderate decisions by neighbors.” However, he added this advice, “Read the CC&Rs to know what restrictions you may have as a homeowner, but judge the HOA’s ability to protect your property value by browsing the existing neighborhood to see how well kept it is.”
Clinton M. cautions potential buyers about possible fines and liens, “When purchasing a home in an HOA neighborhood, be well aware of the fact that your neighbors will be on the lookout for any infractions and are willing to turn you in (subjecting you to fines) for any violations. Be advised that your failure to pay your dues will result in a lien against your property and you can be foreclosed upon by your community. Not surprisingly, the community interest is at stake – if the HOA bankrupts, it goes on your credit too! The best advice I could give to any family or friend would be to think twice about purchasing in an HOA community.”
Homeownership is exciting, and it’s important to feel confident and comfortable about the community in which you buy. If an HOA is part of the package, be sure to do your research first. It’s nearly impossible to get out of HOA requirements and restrictions, and if you’re not happy with how yours is run, you could be in for a world of headaches, extra fees, and disappointment.
If you’re like many people today, one of your main modes of shopping is online. It’s quick, it’s convenient, and it’s sometimes even one-click easy. But, like purchasing in any other manner, you’ll want to make sure you are getting the best deals online. Why pay more than you have to?
Read on to learn some clever hacks that will help you get the best possible deals when shopping online.
Ways to Find Deals Online
1. Finding the Right Coupon Codes
Coupon codes are lurking all over the internet to help people find the best deals at their favorite retailers. For example, many online retailers will give customers a little discount for newsletter signup or for their first purchase. Others hide discount codes, but a simple Google search can yield great results for coupon hunters.
An easier way to dig up coupons to online retailers may be to search on coupon websites like RetailMeNot or Coupons.com.
Digital shoppers also can try downloading Chrome extensions like Honey, which automatically searches the internet for the best discount codes and applies them at checkout.
Recommended: 7 Budgeting Methods to Try
2. Using Free Shipping or In-Store Pickup
Online shopping tips don’t stop at coupons. Another way to save is to find free shipping options. If you don’t need an item ASAP, free shipping is typically an option at checkout.
Many online retailers also offer free shipping with a minimum order amount. To find free shipping deals and codes, check out websites like FreeShipping.com.
Another option may be to order an item online and then pick it up at the store for free. If it’s close enough to grab in person, it may be worth it to avoid shipping costs altogether.
💡 Quick Tip: Tired of paying pointless bank fees? When you open a bank account online you often avoid excess charges.
3. Giving a Price Watcher a Go
Consumers who aren’t in a rush to purchase an item may be able to take advantage of price tracking tools. Price tracking tools help shoppers stay informed about price drops and sales so they can click “buy” at just the right time. These might even be able to help you be more patient if you are an impulsive shopper. Knowing that a better price may be in the offing could help you slow down.
Apps like Honey have tools like Droplist that allow consumers to save items for later and be informed when an item on the list has a price drop.
Other apps like CamelCamelCamel track prices on Amazon, and PriceBlink will find even more deals across the Web, too. It works by showing how much an item costs at several online stores so shoppers can pick the best one.
Recommended: How Many Bank Accounts Should I Have?
4. Trying Online Price Matching
Many larger retailers like Walmart and Target participate in price matching programs, which means if you find a price at one retailer you may be able to get it at another.
This used to mean bringing in a printed coupon or proof that the product was on sale for a lower price at a different retailer, but now, it can all be done online. All a shopper needs to do is reach out to customer service, which may be able to help out.
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5. Checking Reviews
To get the best deal when shopping online, you’ll want to be sure you are getting the best product. And one way to do that is to check online reviews. Customers all over the internet leave reviews on products they’ve purchased, alerting others to potential issues or potential great buys.
On websites like Amazon, search for “verified purchase” to know that the review is legit. While online reviews should be taken with a grain of salt, they are one more tool to add to your decision-making arsenal for online shopping.
Before purchasing a product, is it really something you want or need, or will bring joy? If so, check reviews to make sure it’s the perfect fit before clicking “buy.”
💡 Quick Tip: If you’re creating a budget, try the 50/30/20 budget rule. Allocate 50% of your after-tax income to the “needs” of life, like living expenses and debt. Spend 30% on wants, and then save the remaining 20% towards saving for your long-term goals.
6. Waiting for Bigger Sales
Throughout the year, larger retailers will likely host online shopping sales. These sales are known to occur around the holidays, specifically on Black Friday, the day after Thanksgiving, and Cyber Monday, the following Monday, a day that’s packed with online deals.
Other major sales usually occur around holidays like Presidents Day, Memorial Day, and Labor Day, as well as midsummer. During this time, you may be able to score major discounts, so if you can wait for a purchase, try to hold off until then. Knowing that deep discounts are coming could help you avoid shopping out of boredom. It gives you an incentive to wait.
One more “holiday” to keep an eye out for is Amazon Prime Day. During the sale, retailers across the website offer steep discounts on products.
However, to get in on the deal, you must be an Amazon Prime member, which comes with a subscription. But Amazon Prime members get free shipping on most products, which can add up in the long run.
7. Following Favorite Brands on Social Media
One more way to potentially find the best deals online is to follow brands and retailers on social media. Brands love to give their loyal customers something special, so they may share insider discounts and offers on their social media pages and newsletters before anywhere else.
Give your favorite brands a follow on Twitter, Instagram, or Facebook to stay aware of when sales may be happening, and maybe get inspired about new things to buy along the way, too. Just be sure when you are purchasing that you are on the verified account of the brand. There are some scams out there that you’ll want to avoid.
💡 Quick Tip: When you feel the urge to buy something that isn’t in your budget, try the 30-day rule. Make a note of the item in your calendar for 30 days into the future. When the date rolls around, there’s a good chance the “gotta have it” feeling will have subsided.
8. Earning Cash Back for Purchases
If you’re not interested in having to do all this legwork to get a good deal while shopping online, there is another option: Use a credit card that gives you cash back. You may even be able to bundle and increase the credit card reward if you shop online at specific retailers at certain periods of time.
The Takeaway
Shopping online is already, as you undoubtedly know, quick and easy. But there are ways to make it even more affordable, by tracking prices, using coupon sites, and knowing when to purchase to get the lowest possible price. By deploying these and other hacks, you can get the goods you want at the most budget-friendly price.
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Pay Private Mortgage Insurance (PMI) or play the wait-and-save game? That’s the dilemma for a majority of would-be homebuyers. It’s rarely an easy (or fun) choice.
The Dilemma
Coming up with a 20% down payment can take years. With home prices increasing 5-10% annually, the home of your dreams is sure to cost quite a bit more in 2026. Rather than save, some homebuyers opt to pay PMI instead. Most future homeowners don’t know what PMI is and how much it may cost them.
What’s the Purpose of PMI?
Usually you purchase insurance to protect yourself. PMI works differently: basically you pay to protect the mortgage lender in the event you can’t pay the mortgage. It’s basically a mortgage lender’s insurance to protect themselves if a borrower stops making payments.
In general, mortgage lenders consider buyers who put at least 20% down to have enough skin in the game that they’re low risk. That makes everyone that puts down less than 20% a riskier investment, so they require them to pay PMI.
The Upside of PMI
The good news about PMI is that it’s not too expensive and you don’t pay it forever. Your lender typically requires you to pay PMI until you get to a Loan-to-Value (LTV) ratio of 80% loan to 20% equity. Once you do, you can request your PMI be cancelled, unless you’ve taken out a FHA loan (PMI never falls off when you choose this loan type). PMI also doesn’t cost too much, although the amount you pay can vary. Below are a few ways to lower your payment.
Commonly Asked PMI Questions
How much will I pay in PMI?
Homebuyers required to pay PMI typically pay around 0.5% annually of the total amount borrowed, with the cost split across all 12 months. Here’s some examples:
$180,000 loan ($200,000 with 10% down), PMI $75/mo
$285,000 loan ($300,000 loan with 5% down), PMI $125/mo
When will I be done paying PMI?
This depends on what type of loan you take out. Here’s a quick guide:
FHA: If you take out an FHA loan, mortgage insurance continues for the life of the loan. Ouch. You’d have to refinance your loan to get rid of it.
Conventional: On a conventional loan you only pay PMI until your equity reaches 20%.
How can I avoid paying PMI entirely?
Your house is probably your biggest expense, and the thought of spending extra money each month is as appealing as week-old sushi. Do you have to pay PMI? No, not if you do any of the following:
Put 20% down. Call the parents, check in with Grandma, collect every debt from your former roommates. When you put 20% down, you don’t pay PMI at all.
Opt for an 80-20 piggyback loan. 80-20 mortgage is paid through two loans, a first and a second mortgage. The 80 first mortgage covers the home loan; the 20 second mortgage is the down payment. The second loan in a piggyback loan usually has a higher interest rate.
Look for owner financing. In some situations, owner financing works like rent-to-own, in which case you probably won’t be required to pay 20% down or PMI.
Shop for homes at a lower price point. Consider the difference in down payment for a $250,000 home versus a $300,000 home: (we’ll save you the math: it’s $10,000). Lower price homes may fit your savings account better—and you can trade up or add on later.
Check out Homie Loans™. Homie Loans™ can look at your personal financial situation and tell how you can lower your PMI. Homie Loans™ may be able to help you with a new loan.
To Pay or Not to Pay? The Decision is Yours
No one wants to pay extra each month for their home, but if paying PMI means you can buy a $300,000 home now vs. waiting five years while you save, paying a few thousand in PMI over that same period can make a lot of financial sense. Plus, the $300,000 home you purchase now starts building equity ASAP and will likely increase in value each year you live there.
We’re Here to Help
There’s a lot to consider when choosing to pay PMI vs. wait and save for a 20% down payment, but we hope we’ve given some helpful tips to guide you in the right direction. If you have any additional questions, or would like to begin the home buying process, click here to learn more about how to get started. We’d be happy to help you start your search for your dream home!
I’ve been talking about down payments a lot lately, thanks to all the new zero down mortgages and 1% down loan options that sprang out of nowhere in the past few weeks.
It seems every lender out there is beginning to introduce a lower and lower down payment requirement to get homeowners in the door. And it might be out of necessity, not just convenience.
The brains over at Realtor crunched some numbers to determine what it would take to come up with the average down payment in America’s 15 top cities and the results weren’t very welcoming.
Perhaps that explains the resurgence of all these low-down payment mortgage programs.
Can You Set Aside $68 a Day for Five Years?
I’ll start with my own beloved city, Los Angeles, where the typical down payment is 17%. In order to squirrel away enough cash for an 83% LTV mortgage, you’ll need to set a daily savings goal of $67.95.
Yes, instead of spending money every day on gas, groceries, lattes, Uber, healthcare, and so forth, you’ll need to sock away $68 for five straight years while still paying all your bills and living your lavish lifestyle.
Only then will you have the average down payment, roughly $125,000, needed to buy a $678,000 median home price. Oh, and that median is rising…
Of course, as I mentioned, there are plenty of loan programs that require a lot less than 17% down, including the many 1% down options surfacing, the 3% down mortgage option widely available, and of course FHA, which only requires 3.5% down.
You can also get a USDA loan if it’s in a rural area and come in with no down payment at all.
So there are options here, assuming you’re able to convince the seller in a hot market that you’ll get approved for a mortgage over someone else willing to put 20% or more down (or simply pay for the house with cash).
Assuming you can’t muster $68 in savings daily, you can stretch out the down payment goal to a full decade and save $33.97 per day instead.
By then home prices might just be on sale again, you never know.
Ready to Save $100+ a Day to Buy in SF?
The scary part is that Los Angeles isn’t even the least affordable city in the nation. If we drive or fly (or take a hyperloop) north to San Francisco, a prospective home buyer will need to save $104.46 per day for five years to come up with the average 21.8% down payment.
Again, that’s if home prices stay put and don’t just keep on rising to the stratosphere. And even then, you’ll still have to compete with a million other home buyers just to get your offer accepted.
That might explain why some banks are offering unique loan options, such as the POPPYLOAN, to high-paid workers who may not have the necessary funds for a large down payment at the moment.
If you want to take things a little slower, you can save $52.23 per day for 10 years and accomplish the same thing. Heck, 2026 might be a great year to finally buy a home!
It’s Not All Bad News
While I touched on some of the more unattainable cities across the nation, or perhaps across one state, there are still bargains out there.
In Detroit, you only need to save $13.14 per day for five years to come up with the 12% down payment needed to buy a median priced home valued at $200,000.
If you extend the timeline to 10 years, the daily saving goal drops to just $6.57. That seems pretty reasonable.
And it will only set you back $15.57 per day for 1,825 straight days to buy a home in Philly, or $7.79 per day for 10 years.
Chicago is fairly reasonable as well, with daily savings of $19.44 required for five years, or $9.72 per day for 10 years.
If that all sounds too cold for you, Phoenix homes can be had for daily savings of $20.14 for a period of five years. Or just $10.07 if you save for a decade.
The takeaway here is that buying a home isn’t an overnight decision, even if there are loan programs out there that seem to make it so.
If you’re a parent, you could start socking away some cash each day/month for your kid so they can move out eventually…
Save more, spend smarter, and make your money go further
Budgeting for life insurance might not be as exciting as budgeting for a new car or a fun trip, but it is much easier. Many people think about life insurance, but then decide to put it on the back burner because they think it’s expensive. Well guess what? Life insurance is actually very affordable.
Life insurance is really about protecting your loved ones from financial disaster if you should pass away. Think of it as income replacement.
Plan for what you need
Most people overestimate the cost of life insurance by 3-4 times. Life insurance is less expensive than you think. On average, you can get a $500,000 policy for $50 per month! We recommend getting coverage that is at least 5-10 times your income, but most importantly you should buy what you can comfortably afford. Having $100,000 in coverage is a million times better than having nothing at all.
Here’s what you need to cover:
Personal debt (car, student loans, credit cards)
Mortgage
Funeral expenses
Monthly income your family will need (future college tuition for children, groceries, monthly bills)
How to save money on life insurance
There is no such thing as a coupon for discounts on life insurance, but there are other ways you can save money.
Buy term. Term life insurance is the most affordable coverage you can own. Permanent insurance can cost 10 times more than term life insurance.
Pay annually. Insurance companies add fees for the extra administrative work needed to provide you that convenience of paying monthly or quarterly. Paying annually typically saves you around 5%.
Compare quotes. Life insurance pricing isn’t the same across the board with insurance companies. Different carriers evaluate your application on their specific guidelines, so you may save money by choosing a company that is more lenient toward your health situation. When you compare quotes using a tool like Quotacy, you are provided with competitive prices from all the top life insurance carriers.
Take another look. You may be overpaying especially if you purchased life insurance directly through an agent that only represents one insurance company. Chances are you may be able to get a lower rate just by comparison shopping different companies.
Unbundle your coverage. Bundling your life insurance with home and auto insurance is typically more expensive.
Put the cost of life insurance into perspective
We insure our health, cars, home, valuables, and even our phones, but most of us don’t realize that life insurance is cheaper to insure than most of these. In life we face financial challenges. We budget for daycare, student loans, phone bills, car payments and much more. Life insurance may not feel like a necessity when we are on a tight budget, but when you realize that you can get your family covered for pennies on the dollar, it’s easy to make that decision. If you feel the financial struggle now, what happens to your family if you die? Make sure your family is protected.
Fitting life insurance into a budget
Let’s look at three easy changes that you can make to fit life insurance into your budget. I’ve even made them myself!
1: Practice BYO (Bring Your Own)
Do you go through the Starbucks drive-thru or out to lunch on a daily basis? What about those happy hours and brunching on the weekend? I get it. It may take baby steps to start making your own coffee, packing your own lunch, and cutting back on eating out in general. But you’ll be surprised at how quickly the savings adds up.
My girlfriends and I alternate between throwing our own happy hours or brunches on the weekends. There’s no pressure to get all dolled up, and we make it easy by having everyone pitch in and bring their favorite drink or dish. Sure, I still go out and have fun, I just do it a little less often.
2: Conduct a subscription audit
These days with all the apps we have our fingertips and that fine line between need and want, it’s easy to let the number of subscriptions we have get out of hand. So many of these subscriptions are auto withdrawn, so when you look at your bank account it’s hard to decipher what you are even paying for anymore. Chances are you don’t need to pay for Hulu, cable, and Netflix, or Pandora, Spotify, and iTunes Radio. Give up a few and your bank account will thank you.
I’m the queen of subscriptions. But after my budget boyfriend became my budget husband, I was encouraged to give up a few subscriptions in order to save for our future. I thought $10 per month was no big deal, but when I added everything up, it became a real chunk of change. I encourage you to go through your subscriptions and decide what you really need.
3: Get creative with date nights
Going out for a date night gets expensive. Even if you just go out for dinner and a movie, that night adds up quickly. A dinner for two can quickly reach $50 or more, especially when you add in drinks. Have you been to a movie lately? Evening tickets are averaging $12-$14 each! And of course you want that delicious, buttery popcorn to go along with that show. It’s easy to spend $100 for a simple night out.
I’m a lover of date nights, but when my husband and I made it a weekly thing, it became a large monthly expense. While we enjoy a dinner and a movie, sometimes we make it a daytime activity. A lunch and a matinee can cost almost half the price of an evening out. Or, we choose a movie on Netflix and make a dinner at home.
We also decided to spice things up by finding activities we both enjoy and took up tennis lessons. Now we love taking our dates to the tennis court and loser has to make dinner at home. Fortunately my game is better than his, so I rarely have to cook. Not only do we save money by not going out, we also get a good sweat session in.
How to shop around for life insurance coverage
Admittedly, you’ll be shopping for the lowest price. Make sure the prices you see are from well-known brands with high financial strength ratings (A rated or better). These companies have been around a century or more and will be here for a long time to come.
Let’s say you’re looking for a $500,000, 20 year term policy. To stay competitive, insurance companies all have around the same price for the same policy, maybe just within a few cents of each other, so at first look they all appear to be about the same. Starting prices are based on your gender, your age, what state you live in, and whether or not you smoke cigarettes.
From there, pricing starts to change based on specific niches that insurance carriers have created for certain medical conditions and lifestyle habits. For instance, if you enjoy an occasional cigar during your monthly golf game, many carriers will consider you to be a smoker at a higher price, while a few companies see that as less of a big deal and will classify you a non-smoker at lower prices.
Here’s another example. Even if you are the epitome of health, but one of your parents wasn’t, prices can be higher because of the genetic risk they passed onto you. Let’s say your father died of cancer before we was 50. Your low rate won’t be affected with one or two carriers, but with all the rest your price will be higher.
A good place to start your shopping is at Quotacy. When you use Quotacy’s life insurance quoting tool you’ll see how easy it is to find and compare prices between the top carriers. You’ll be able to find the right price for you.
Jeanna Simonson is a writer and the Ambassador of Buzz at Quotacy. She has been researching and writing educational articles on the importance of life insurance since 2015. When not writing for Quotacy, you can find her scoping out the newest fitness and beauty trends for her own personal blog, traveling and spending time with her husband and fur babies. Connect with her on LinkedIn.
Save more, spend smarter, and make your money go further
The busy summer season is here. The housing market tends to pick up during the summer, but with how hot the housing market has been lately, it’s hard to imagine things moving quicker.
With how predictable the housing market has been during the summer during recent years, it would be easy to guess that 2018 won’t be any different. However, the current housing market is in a much different environment than it was just a few years ago.
There are plenty of home buyers and homeowners looking to either buy or sell this summer – and it could end up being an excellent decision for both.
Here are housing trends to know for this summer:
Click to check current VA rates.
A hot housing market
The housing market has been on fire lately with home prices rising across the country. While some markets have been slower than others, the overall sentiment is that this is an incredibly strong housing market.
Because the summer is generally the busiest time of the year, there should be no reason to expect anything different. Home buyers are more active in the summer for a variety of reasons, regardless of how strong the housing market is.
For home buyers in some of the hotter markets, don’t expect a huge pickup. The strongest markets don’t have much room for growth at the moment, so you should be prepared for more of the same.
Rising home prices – but not too high
Home prices have been rising steadily for years now, and they should continue to do so.
The price of homes is largely dictated by how much home buyers are willing to pay. Since the demand for housing is high, home buyers will be willing to spend more money than they were just one year ago.
That being said, home price growth might slow down in a lot of markets. According to the Case-Shiller Home Price Index, home prices across the nation rose by 6.53% year over year from March of 2018 to this year. That’s incredibly quick growth, especially considering it includes smaller markets.
That type of growth is not sustainable and it shouldn’t continue. While home prices will rise this summer, it will likely be by a smaller margin.
Check today’s VA rates.
Low housing inventory
This probably isn’t news to anyone who has been looking to buy a home for the past few years.
The national housing shortage is real, and home buyers – particularly those in dense urban areas – have been having a difficult time finding affordable housing.
Unfortunately for home buyers, this trend should continue to persist through the summer. The demand for housing typically jumps during the summer, but there’s no guarantee that housing supply will match the increase.
The good news is that housing inventory is likely becoming less of an issue. Toward the end of 2018 and going into 2019, don’t be surprised if homes stay on the market longer.
Higher mortgage rates
With economic growth occurring across the country, it would be nearly impossible to avoid higher mortgage rates.
Just last month, Freddie Mac reported that mortgage rates hit their highest average levels of the past three years. Rates are nearing even higher levels, and they should set record highs for 2018 multiple times throughout the summer.
The rise in rates is mostly fueled by an optimistic outlook on the market. The Federal Reserve has been raising rates, and this has affected every market – housing included.
Higher rates don’t always occur during the summer – in both 2016 and 2017, mortgage rates steadily declined from April through August, only to start to climb right after.
2018 is already breaking that trend. Since the beginning of April, mortgage rates are up roughly 20 basis points (0.20%). With the way the economy is moving, rates should continue to climb this summer.
VA loans continue to be the best mortgage program
While some home buyers might become worried about the cost of buying a house this summer, VA loans will continue to make it easier for veterans to purchase a home.
VA loans have consistently had the lowest rates available. According to mortgage software company Ellie Mae, the average VA loan in April had a rate of 4.63%, as compared to 4.84% for FHA and 4.80% for conventional.
Also, VA home buyers can avoid paying a downpayment entirely, something that should help them afford a home despite rising home costs.
This summer, there’s no reason to believe VA loans won’t continue to be the best mortgage program available. Anyone who is eligible and wants to buy a home this summer will likely want to use a VA loan.