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Apache is functioning normally

May 29, 2023 by Brett Tams

When it comes to retirement planning, the term “pension” is becoming almost archaic. According to the Office of National Statistics (ONS) only 35% of workers in the private sector paid into a company pension fund last year. Most employers have adopted 401k plans and put the responsibility on the employee’s shoulders to take care of funding their own retirement. While having control can be a blessing, it can also be a double-edged sword. Especially, for those that don’t take the time to fully understand all of their investment options. For those people, there just might be a solution. It’s called the DB(k) pension plan and here are the rules on how it works.

401(k) Match + Pension Plan = DB(k)

What exactly is a DB(k) pension plan? Essentially, it combines the benefits of an income stream of a pension with the matching of a 401(k) plan. Many boomers that still have pensions, love them because they know they have an income stream that they can depend on. The DB(k) offers the luxury of that stable income with a matching contribution to boot. Might be the closest example of having your cake and eating it too when it comes to retirement planning.

DB(k)s Could Be Popular to Employees

Many small businesses will bypass a Simple IRA or a SEP IRA and go straight to the 401(k) plan purely because of name recognition. Employees like perks and a potential employer with a 401(k) plan with a match sounds much more attractive that a SEP IRA. The DB(k) has the potential to be the next household name of retirement plans. Most workers that I come across that have 401(k)’s don’t really understand them. Having a pension-style income like the one Mom and Dad had, may be a safer and less complicated solution.

Are DB(k) Plans Expensive for Employers?

It’s tough to say. With the recent adoption of these plans, it doesn’t seem that employers are rushing off to get these started. I’m sure the slumping economy is the largest barrier. For those companies that do start these, they most likely have a very good cash reserve. However, it isn’t as if a business is funding two retirement plans at once. In fact, any businesses that offer both defined benefit plans and 401(k) plans may unite them in this new option.

Less Paperwork Makes Everybody a Happy Camper

Companies with 2-500 employees are eligible to have DB(k)s pension plans. Where 401(k) plans must meet certain “testing requirements” for top-heavy rules, the DB(k) is exempt and with a plan document and one simple form 5500, your business is ready to rock and roll DB(k) style.

These plans are exempt from “top-heavy” rules, and a company can put one in place with just one Form 5500 and one plan document. The cost of the overall plan is the question. Being new plans, it’s hard to say, but based on most reports I’ve read the cost should be cheaper compared to having both a 401(k) and a pension plan.

Employee Benefits from DB(k) Plans

An income stream, an employer match and a really neat tool to save for retirement. In brief, the DB(k) has four compelling attributes:

Monthly Paycheck for Life. The income stream won’t replace an employee’s end salary, but it certainly will help. Employees that have worked for the company for a longer period of time are rewarded: the pension income equals either

a) 1% of final average pay times the number of years of service, or

b) 20% of that worker’s average salary during his or her five consecutive highest-earning years.

Automatic Enrollment for 401k. That employees save for the future by default. (They can choose to opt out.)
The company automatically directs 4% of a worker’s salary into his or her 401(k) account. The company also has to match 50% of that amount, which is vested upon the match. (Employees do have the choice to alter the contribution level up or down from 4%.)
It only takes three years for an employee to become fully vested in a DB(k) pension plan. So even if they leave the company, the money is theirs.

Is the DB(k) the Retirement Savior?

For now, it’s too tough to say. The strongest benefits I see is the ability to offer more to your key employees. If you’re able to offer a sweet retirement package, it may help retain and gather more productive and easier to manage staff.

Source: goodfinancialcents.com

Apache is functioning normally

May 29, 2023 by Brett Tams

Editor’s note: TPG founder Brian Kelly is a Bilt adviser and investor. This is a recurring post, regularly updated with new information and offers.

Good news for Bilt Rewards members: The program is back with several Rent Day promotions for June. On June 1, you can solve a puzzle to win a prize, play trivia to earn Bilt points, enjoy double points on non-rent purchases and more.

Bilt holds Rent Day on the first day of each month. The Bilt Rewards program is free to join, and you don’t have to have a Bilt credit card to participate in many Rent Day offers. Now, here’s what you need to know about the June Rent Day.

Solve a puzzle to win a prize

This month is Bilt’s birthday. To celebrate, the program is offering a gift to every member who solves the Rent Day puzzle June 1.

Open the Bilt app June 1, click the Rent Day tab and try to solve the Rent Day Challenge puzzle. If you fail to complete the puzzle, you’ll earn a “participation prize” of 50 Bilt Rewards points. But if you complete the puzzle, you’ll win one of the following prizes:

Bilt points: You could win 25, 50, 10,000 or 100,000 Bilt points as your prize. Bilt will deposit these points into winning accounts within 24 hours.
Points to use toward the Bilt Collection: You could win 5,000 or 25,000 points toward a purchase from the Bilt Collection. Bilt will deposit these points into winning accounts within 24 hours.
Lyft ride credit: You could win a $100 ride credit provided as a Lyft Pass valid for a year. This Lyft Pass will be automatically applied as you take rides. If you don’t have a Lyft account, sign up with the same number you’ve used for your Bilt account.
Free rent: You could win a month of free rent. If you win this prize, Bilt will contact you by email within 24 hours.
Virgin Atlantic Upper Class round-trip for two to London: One Bilt member could win enough Bilt points to book two round-trip Virgin Upper Class tickets from the U.S. gateway of their choice to London. If you win this prize, Bilt will contact you by email within 24 hours, help you book the tickets and cover the taxes and fees.
Emirates business class round-trip for two to Dubai: One Bilt member could win enough Bilt points to book two round-trip Emirates business-class tickets from the U.S. gateway of their choice to Dubai. If you win this prize, Bilt will contact you by email within 24 hours, help you book the tickets and cover the taxes and fees.

It’s worth opening the Bilt app June 1 to solve the word puzzle. The most likely outcome is that you’ll win 50 Bilt points, but there’s always the chance you could win something worth a lot more.

Related: How long do Bilt Rewards points take to transfer?

Earn free Bilt points through trivia

If you’re good at trivia, you can boost your Bilt Rewards balance for free June 1.

Bilt Rewards will give its members five trivia questions through its app. The questions increase incrementally in difficulty and value. But if you get all five questions correct, you’ll earn 150 points and Bilt will unlock a sixth question worth an extra 100 points.

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This means you could earn 250 Bilt points through trivia June 1 if you get all six questions correct.

Related: 6 of the best ways to redeem Bilt Rewards points for maximum value

Double Bilt points on non-rent purchases

As on previous Bilt Rent Days, you’ll earn double points when you use your Bilt Mastercard® to make non-rent purchases between midnight EDT and 11:59 p.m. PDT on June 1 (see rates and fees). You’ll earn as follows for purchases you make on Rent Day:

Dining: 6 points per dollar spent.
Travel: 4 points per dollar spent.
Other purchases (excluding rent): 2 points per dollar spent.
Rent: 1 point per dollar spent.

You can earn up to 10,000 bonus points during the June 1 Rent Day. However, you must use your Bilt Mastercard at least five times each statement period to earn points.

Plus, if you dine at a Bilt Dining restaurant June 1 and use your Bilt Mastercard to pay, you can earn up to 11 points per dollar spent.

Related: Should you use the Bilt Mastercard? Why it’s a game changer for renters

Rent Day SoulCycle rides

ARI PERILSTEIN/GETTY IMAGES/AMERICAN EXPRESS

Finally, Bilt will offer its monthly Rent Day SoulCycle rides June 1. To participate, buy a SoulCycle class series and book a bike in a Rent Day Ride-themed class at your choice of more than 50 participating locations. Once you do so, you can bring a companion on your June 1 ride for no additional cost.

One lucky rider and their guest who attend a June 1 Rent Day Ride will each get a month of rent paid by Bilt.

Related: Bilt Mastercard review: Zero-fee rent payments

Bottom line

If you’re a Bilt Rewards member, you can celebrate the start of June with new Bilt Rent Day promotions. Whether you earn extra rewards through trivia, spending or both, Bilt Rewards’ June Rent Day allows you to boost your points balance. You can also solve the Rent Day Challenge puzzle to win a prize this Rent Day.

See Bilt Mastercard rates and fees here.
See Bilt Mastercard rewards and benefits here.

Source: thepointsguy.com

Apache is functioning normally

May 29, 2023 by Brett Tams

Certificates of deposit (often simply called CDs), by definition are time deposits. You give your money to the bank and then promise not to touch it for a specific length of time. In general, the longer you agree to let the bank keep your money via a CD investment, the higher the interest rate you will receive.

If certificates of deposit offer higher returns than a savings account, then why doesn’t everybody use them? The primary reason is that a CD investment is less liquid than a savings account in that you can’t just move money in and out without penalty as you can in a savings account. You can take your money out of a CD before it “matures,” but you are docked interest when you do. In fact, it is typical for a bank to penalize the interest amount even if it hasn’t been earned (meaning you could lose part of your principal if you close your CD early).

Anatomy of a CD

I was fortunate to win a $1,000 6-month certificate of deposit from ING Direct recently. (I never win anything!) Looking at it might be instructive:

Reviewing this screenshot, you can see that a certificate of deposit has an initial value (in this case, $1,000), an interest rate (3.50%), and a term (6 months). In other words, this is very much like a loan that I am making to the bank.

You can also see that the bank has an “Early Redemption Policy” that states that I would sacrifice three months’ interest if I chose to redeem this CD early, whether the interest has been earned or not. Because I have held the CD less than a month, I would actually sacrifice part of my principal if I were to close the account now.

When this CD investment matures on April 9th, I will have $1,017.28. Obviously $17.28 isn’t a huge return, but it’s important to remember that interest rates are low right now. (Also consider that if my $10,000 emergency fund were all in CDs, I would earn $172.80 in six months.)

Another important difference to be aware of is that, unlike a savings account, a certificate of deposit ends after a set amount of time. What happens at the end of the term depends on the arrangements you have (or have not) made with your bank. (I explain this further below.)

CD Tips and Tricks

A certificate of deposit is a great way to put your savings on steroids, so to speak, but there are ways to make them even better. Here are a few tips and tricks that can help you get the most out of your investment.

Use CDs to beat falling interest rates. When the Federal Reserve cuts short-term interest rates, you feel the pinch in your savings account. Certificates of deposit are a great way to buy yourself “protection.”

When you see a rate drop coming, open another CD. For example, the Federal Reserve just cut short-term rates another 0.50 percent last week. I would be shocked if banks didn’t follow suit, lowering the interest on their savings accounts. ING Direct could go as low as 2.25 percent.

When you see an interest drop coming, take some money from your savings account and throw it into a 6- or 12-month certificate of deposit, locking in the higher rate. (My web research hasn’t revealed what causes CD rates to move, but they do not move in lockstep with savings accounts.)

Climb the CD investment ladder. Just as you might use dollar-cost averaging to profit from fluctuations in the stock market, you can use a “CD ladder” to profit from fluctuations in interest rates.

Say you have $5,000 to invest. To build a CD ladder, you would invest the money in CDs with staggered maturation dates:

$1,000 in a one-year CD
$1,000 in a two-year CD
$1,000 in a three-year CD
$1,000 in a four-year CD
$1,000 in a five-year CD

As each CD matures, you immediately invest your money in a new five-year CD, effectively maintaining the one-year stagger, or ladder. You won’t earn the best possible rate of return, but you will earn a good one, and your income will be relatively constant. The CD ladder is also a form of diversification: you’re not betting all your money on one interest rate.

Protect yourself with parallel CDs. One of the biggest risks to your investment in a certificate of deposit is the need for early withdrawal. What if something happens and you need to pull the money out? As we’ve seen, this can be expensive. Nickel at Five Cent Nickel suggests mitigating your risk with parallel certificates of deposit.

Again, assume have $5,000 that you’d like to put into CDs. Instead of opening a single certificate of deposit for the full amount, consider opening multiple CDs. You might open three CDs at once, for example: two $1,000 CDs and one $3,000 CD.

This gives you a buffer in case you need to get at the money early. If you find you need $500, you can break a single $1,000 CD and the rest of your money is safe from penalty.

Related >> Beginners’ Guide to Investing

Beware of auto-renewals. Nicole wrote last week because she was surprised to find that her certificate of deposit at Countrywide had automatically renewed at the maturation date. Many (most?) banks will do this unless you instruct them not to.

If you know you’re ready to pull your money out of a certificate of deposit, be sure to contact your bank to find out the proper procedure for doing so. Nicole found herself locked into another twelve month CD when she needed the money now. If she broke the contract, she would be forced to sacrifice 180 days interest, whether earned or not.

(Note that Nicole’s story had a semi-happy resolution. She knows to speak up when something seems wrong. Countrywide wouldn’t let her out of the CD investment entirely, but “I was able to negotiate a compromise to transfer the money to a 3-month CD, rather than the 12 month CD. Although the interest rate is lower, I will be out in 3 months, which isn’t too bad.”)

Shop around. As with any financial decision, it pays to shop around for CD rates. You may find that your local bank actually offers a better deal on certificates of deposit than the online banks.

For example, my local credit union only offers 0.35% on its regular savings account, but its CD rates are competitive with (and sometimes higher than) ING Direct. Since I keep my checking account at the credit union, it might make sense for me to hold my CDs there. (In this case, however, they’re not high enough to make me switch; I’d rather track everything in one place at ING.)

Here’s my list of current CD rates from online banks.

CDs in Practice

I’m new to the certificate of deposit, but I can already see some uses for it. My $10,000 emergency fund, for example, is currently earning 2.75%. I may instead create a series of parallel CDs, as described above.

Also, I’m saving for my Mini Cooper. That money is also earning 2.75%. I’m nowhere close to buying the car, though, so I might as well put it into a certificate of deposit, too.

Though certificates of deposit are new to me, I’m sure that most of you have been using them for years. What tips and tricks can you offer? Do you have favorite sources for CD investments? How do you decide which money to keep there and which to keep in a savings account?

Identifying the Best CD Rates

It is important to think through how best to use a certificate of deposit in your overall financial plan, but it starts with understanding your goals and how a CD can help you reach them. Interest rates change constantly, so having up-to-date rate information is critical to identifying the best CD rates and terms to make the most of your investment. We have made the whole process easier in a convenient page that is updated weekly with the most current interest rates.

Different strategies can help you capitalize on fluctuating interest rates too.
A CD ladder can help you maintain a relatively constant income no matter how current CD rates change. A parallel CD strategy can help you maintain some accessibility to your funds during the term. Richard Barrington’s post can help you understand how to find the right CD but do shop for the highest CD rates and terms regularly to maximize your return. Bookmark this page as well so you can easily come back to our table to check rates and terms as often as you want.

Current Certificate of Deposit Rates

An online account is arguably one of the most convenient ways to manage CDs and, generally speaking, online banks offer higher rates than traditional brick-and-mortar institutions. The following listings of online banks are updated weekly too, and a little more information about each bank is given next to each listing as well. Credit unions and savings associations are also sources of CDs and other deposit accounts.

CD Basics

A certificate of deposit, or CD, is a deposit account that is generally considered a very low-risk investment. You might also hear it described as a time deposit because it is not a liquid asset that can be accessed on demand. Instead, the amounts deposited into a CD are expected to remain untouched for a specific period of time, which is the term of the CD. In exchange, the bank will pay you a fixed rate of interest.
Example investment: You put $10,000 in a 5-year certificate of deposit at an interest rate of 1.75%. At the end of five years, with interest compounded daily, you would have $10,914.

Early withdrawal penalty – The full value of the CD (your principal plus the interest earned) is accessible when the term has been reached; however, there is usually a penalty if you withdraw your funds before the end of the term. This means that the bank will keep a portion of the interest earned, which could also cut into the original principal balance if the CD has not accrued enough interest to satisfy the entire penalty yet.

For example, if a depositor wishes to close a one-year CD account after two months but the bank’s policy states that an early withdrawal penalty equal to three months’ interest would be due in that event, then the bank will dip into the depositor’s principal balance to make up for the shortfall between the interest earned and the penalty. Early withdrawal penalties vary from bank to bank, and this is another important item to consider as you shop for the best CD rates and open your new account.

Fixed interest rates – Even though interest rates change regularly, banks usually offer a fixed interest rate that doesn’t fluctuate, allowing you to lock in that particular rate for the entire term of your CD. Banks are willing to fix the interest rate, which is generally higher for certificates of deposit than for most savings accounts, because the funds remain on deposit with the bank untouched for that specific period of time. (In general, the longer the term, the higher the interest rate for a CD.)

FDIC insurance – The Federal Deposit Insurance Corporation insures most certificates of deposit so that the balance of your CD will be paid to you even if the banking institution becomes insolvent for some reason. The standard deposit insurance coverage limit is $250,000 per depositor, but it is important to verify the amount of FDIC insurance that applies to the particular CD accounts you open.

High Interest CDs that Can Double Your Interest Income

According to the FDIC, five-year CD rates (certificates of deposit or CDs) are currently averaging just 0.75 percent nationally. Fortunately though, not all CDs are created equally. Here are 10 CDs that offer at least double the interest income that today’s average account provides:

iGOBanking. Forget the awkward name and focus on the rate: Annual percentage yield (APY) is 0.35 percent on a five-year CD. iGOBanking is the online division of Flushing Bank. Though Flushing Bank is quite small, with deposits of less than $600 million according to FDIC data. The minimum deposit is just $1,000, so the iGOBanking CD is readily accessible. The penalty for early withdrawal is 12 months now. (Rate as of July 5, 2016.)
EverBank. EverBank has made a commitment to offering high interest rates by pledging to keep its CD rates in the top 5 percent of comparable products. With a 1.76 percent APY on its 5-year CD, it seems to be living up to that pledge. (Rate as of July 5, 2016.) EverBank’s 17 branches are all in Florida, but its products are available to a national audience online, and with more than $10 billion in deposits, they have built up a fairly substantial customer base. The minimum to open is a reasonable $1,500, but the only catch is a hefty penalty for early withdrawal — equal to 900 days of interest on its five-year CD.
Nationwide Bank. This online banking affiliate of the insurance giant offers a five-year CD with a 1.95 percent APY for balances between $0 and $9,999.99 and a minimum of $500 to open. That APY bumps up to 2.00 percent for deposits of $100,000 or more. These strong rates do require a long-term commitment, since the early withdrawal penalty is 360 days of interest. (Rates as of July 5, 2016.)
Barclays Bank. Barclays is an international banking powerhouse, and it offers a very competitive five-year CD with a 2.65 percent APY. This rate applies to its online CD, which has the added advantages of having no minimum balance requirement and the penalty for early withdrawals is 180 days. (Rate as of 05 March 2018.)
GS Bank. GS Bank’s five-year CD has a 2.00 percent APY and a user-friendly $500 minimum deposit to open. There is a 270-day early withdrawal penalty, so make sure you are committed for at least a couple years if you choose this product. (Rate as of July 5, 2016.)
BBVA Compass. Though most of these highest-yielding CDs are found at online banks, BBVA Compass also offers a traditional, branch-based alternative with 716 locations. The account minimum is just $500, and the rates may reach as high as 2.00 percent APY for a four-year term, depending on which branch location you visit. Rate collected within: Birmingham, AL: 0.50%(Rate as of July 5, 2016.)
Ally Bank. One of the leaders in online banking, Ally has built itself up to more than $40 billion in deposits. The 1.65 percent APY on its five-year CD is well over twice the national average, but there is a 150-day early-withdrawal penalty. Still this CD is an excellent choice even if you think that rates might rise within the next five years. (Rate as of July 5, 2016.)
Sallie Mae. Sallie Mae is probably better known for student loans, but it also offers online deposit products, including a five-year CD with a 1.80 percent APY and a $2,500 minimum deposit. The early withdrawal penalty is equal to 180 days of interest. (Rate as of July 5, 2016.)
Discover Bank. Though the Discover name is more commonly linked to credit cards, Discover Bank also has more than $40 billion in deposits. Its five-year CD rate offers an APY of 1.85 percent with a $2,500 minimum deposit to open and an early withdrawal penalty equal to what can be up to 18 months of interest. (Rate as of July 5, 2016.)

The above are not necessarily the 10 highest-yielding five-year CDs in the country. They were chosen because their rates are at least twice the national average, they are available in multiple states and they have relatively user-friendly websites. You may find additional options in your area, but the points discussed above can still provide you with some framework for what criteria to consider — including rates, minimums and penalties — when choosing a CD.

Have you been able to find CD rates that rival these? If so, please add a comment below. Don’t forget to include the details: name of the bank, state, rate, when you opened the account with this rate, and whether you can open the account online or must appear in person.

Source: getrichslowly.org

Apache is functioning normally

May 29, 2023 by Brett Tams

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This may seem like a silly question. But, everyone needs to know…

What frugal billionaire eats almost every breakfast at McDonald’s?

While this billionaire isn’t as famous for their glamour shots as most on The Hollywood Gossip, they still drive many thought-provoking questions.

And today’s starts with breakfast…

Combined with is the market up or down?

I am sure you have all heard by now that McDonald’s is one of the most frugal places to eat, but how about a billionaire eating there for breakfast?

Every. Single. Day.

What frugal billionaire eats almost every breakfast at McDonald’s?

Warren Buffett, one of the richest people in the world, has a surprisingly frugal breakfast routine. Every day, he eats breakfast at McDonald’s.

Shocking, I know.

So why does Buffett eat McDonald’s every day for breakfast?

It likely has something to do with the low cost and convenience of the restaurant. He enjoys the food there, calling it “normal stuff.”

If you want to save money or a simple breakfast option, following Warren Buffett’s lead might be a good idea. Just head to your nearest McDonald’s for some cheap and tasty grub!

What does he eat for breakfast?

Warren Buffett is a famously frugal billionaire, and he has a particular fondness for McDonald’s breakfast items.

This is the rumor of how Buffett decides what to eat in the morning:

If the premarket or stock market is up, he chooses a bacon, egg, and cheese biscuit.
If the premarket or stock market is down, he opts for two sausage patties – a cheaper option.
When the market is flat, he selects a sausage McMuffin

In 1975, the Egg McMuffin was about 63 cents at the time! Today, you would expect to pay $2.79.

This may not seem like much, but it’s an important part of his billionaire morning routine.

How can you save money on breakfast like the frugal billionaire?

There are many ways to save money on breakfast like the frugal billionaire.

One way is to cook at home, which can be a cheaper option than eating out.

Another way is to eat leftovers from dinner the night before, or pack a lunch instead of buying food at work. You could also try skipping breakfast altogether or buying food from a less expensive restaurant.

Whatever you do, remember that being frugal doesn’t mean sacrificing your health or your happiness.

There are plenty of affordable options for breakfast (and every other meal) that can help you stick to your budget without feeling deprived. So go ahead and enjoy that delicious breakfast McMuffin from McDonald’s—you deserve it!

How much is Warren Buffett worth?

Warren Buffett is an American business magnate, investor, and philanthropist. He is the chairman and CEO of Berkshire Hathaway, and he has a net worth of $114 billion as of May 2022, making him the world’s sixth richest individual.

Buffett runs Berkshire Hathaway, which has over 60 organizations and owns such companies as Geico, Duracell, and Dairy Queen. In addition to his primary occupation, Buffett is also a noted value investor and has been referred to as the “Oracle of Omaha”.

Buffett initially purchased stock at the age of 11 and first documented taxes at 13 years old. He made his first million in 1962 when he sold shares in Graham-Newman Corp., where he worked for Benjamin Graham (a well-known value investor).

Buffett’s wealth has largely come from two sources: investments and dividends/interest payments on stocks he holds.

In late 1995, Warren Buffett bought a few shares of McDonald’s stock–and now owns more than $2 billion worth. However, he isn’t just interested in fast food; Buffett also owns sizable stakes in Coca-Cola Co., IBM Corp., Wells Fargo & Co., and American Express Co.

Yes, this is over 10 figures.

How much does Warren Buffett make per second?

Warren Buffett is without a doubt one of the most successful businessmen in the world.

According to Strive.co, it is estimated Warren Buffett makes $165 a second!!

Over $9,915 a minute, which is higher than most people make in one month! In fact, it is almost double the average monthly salary for someone making 60000 a year.

Buffett’s Long-Term Success

Buffett’s success comes from his ability to make smart investments and focus on long-term success rather than short-term gains. He is also very generous with his wealth, having given more than $41 billion to charitable causes over his lifetime.

Despite being one of the richest people in the world, Buffett remains humble and focuses on making decisions that will benefit his shareholders (per-share) rather than just increasing his total net worth.

This approach has served him well over the years and made him one of the most successful investors ever.

In fact, Buffett is one of the most quoted people especially for millionaire quotes to find success.

Warren Buffett Diet

Warren Buffett is a well-known billionaire and one of the most successful investors in the world. What you may not know, however, is that Buffett has a rather unhealthy diet. In fact, he drinks five cans of Coca-Cola products each day and eats mostly junk food.

An odd way to get the calories you need.

Buffett’s poor eating habits have raised eyebrows in the past, but it seems to work for him–he has the lowest death rate among his age group. His diet consists mostly of breakfast and lunch, with no desserts or snacks throughout the day. This may seem surprising given how unhealthy his diet is, but as Buffett himself says, “I’m not sure I would recommend my diet for everyone.”

Buffett’s diet is legendary and often studied by business people and students alike. He credits his success to eating what he calls “normal stuff for a six-year old.”

McDonald’s Stock Forecast

McDonald’s is an American icon. It has been around for over 60 years, and it has graced the faces of millions of Americans as they have enjoyed their morning meals.

In fact, McDonald’s is part of the Dow Jones Index. One of the top 30 companies that make up the stock market (source).

After reading this article, you may think that Buffett has something to do with keeping McDonald’s stock forecast rising.

How did Warren Buffett get Mcdonald’s gold card?

In an interview with CNBC, Buffett revealed that he has a card that allows him to get free McDonald’s anywhere in the world. This has caused some speculation, as it’s not clear how Buffett got the card or if it’s even real.

However, Bill Gates, Mitt Romney and Buffett are confirmed to have such a card.

In fact, the McDonald’s Gold Card is not just for celebrities and billionaires. “Supposedly,” any customer can get one by spending $2 million or more at the fast-food chain. The card entitles the holder to free food for life.

Now, you can play their Monopoly game for a chance to win a Mcdonald’s VIP Card. By winning a VIP Gold Card you will be able to claim a one-time free meal at McDonald’s every week for an entire year once using the My McDonald’s app.

Even Warren Buffett, one of the richest people in the world, frequents McDonald’s for breakfast and has a Gold Card to prove it. Yet, no photo of Buffett and the Gold Card.

How to Get the McGold Card with this Sweepstakes

Now, it is your time to get the coveted McGold card!

Not just for celebrities anymore!

You have the chance to win a “lifetime” supply of Mcdonald’s. (the fine print says up to two meals per week for fifty (50) years)

First, you need to download the McDonald’s app and be enrolled in the MyMcDonald’s Reward program.

Next, every time you make a purchase during the duration of the contest, you receive an entry to the sweepstakes, up to once per day.

Or, you can enter without making a purchase by clicking this link from December 5 through December 25 and entering once per day for the duration of the contest.

**The McD’s For Life Sweepstakes is only from December 5-25, 2022.**

Does Warren Buffett own McDonald’s?

No. Warren Buffett does not own and operate a McDonald’s Franchise.

However, he made an investment in the company that surprised many people – he invested in McDonald’s because he loved the franchise model.

He has invested in other well-known consumer brands such as Apple, Coca-Cola and Gillette. This gives us some insight into his investment philosophy–Buffett believes in buying businesses with strong fundamentals that will be around for a long time.

Top Warren Buffett Stocks By Size

At the end of Q4 2021, these were the top 10 Warren Buffett stocks by the number of shares:

Bank of America (BAC), 1.01 billion
Apple (AAPL), 887.1 million
Coca-Cola (KO), 400 million
Kraft Heinz (KHC), 325.6 million
Verizon (VZ), 158.8 million
American Express (AXP), 151.6 million
U.S. Bancorp (USB), 126.4 million
Nu Holdings (NU), 107.1 million
Bank of New York Mellon (BK), 72.4 million
Kroger (KR), 61.4 million

Specifically, this is what his company Berkshire Hathaway is invested in.

While Buffett has never authored a book himself, there are many books about him, his investment strategies, and his philosophies.

His life story and investment techniques are fascinating. There are a variety of books about Buffett, but some are more satisfying to read than others. Some books focus more on his life and achievements, while others focus on replicating his investment style.

Warren Buffett McDonalds breakfast

As you have now learned, Warren Buffett, one of the richest men in the world, has a particular fondness for McDonald’s breakfast menu items.

He has been photographed eating breakfast at McDonald’s locations almost every morning.

The billionaire investor says that he enjoys the food and finds it to be a cheap and convenient option.

He sticks to ordering sausage patties and eggs, or bacon and eggs from the menu.

Now, the questions to ponder, are you going to continue this frugal billionaire’s breakfast routine?

Or should you follow his investment advice instead…

Buffett has been quoted as saying “the greatest challenge is not in the selection of the right stocks, but in sticking with sound investments despite uncertainty.” In order to emulate Buffett’s investment strategies, it is important to be patient and remain committed to your investments through thick and thin.

Source: moneybliss.org

Apache is functioning normally

May 29, 2023 by Brett Tams

If you’ve ruled out winning the lottery as your chance to become a millionaire, you must have considered real estate investing a viable opportunity.

And if you haven’t, this article will plant the seed.

Real estate data firm PropertyShark took a closer look at how many property owners have made a good profit off of selling their homes since the turn of the century. More specifically, they looked at homes bought before 2001 for less than $1 million, later to be sold by their owner for $1+ million.

They then grouped the data by city, to give us a clear picture of the thriving real estate markets where investing in property can take us one step closer to becoming a millionaire. Here’s how they map out:

real-estate-millionaires-by-city — Image credit: PropertyShark.com

The city to land first place is — unsurprisingly — San Francisco, which minted 381 million real estate millionaires as the market skyrocketed in the past two decades. That puts it ahead of Manhattan, which, despite being double the size of San Francisco, only saw 335 people become millionaires off of selling their properties.

A more unexpected finding was that the Los Angeles market lost the third spot in favor of Brooklyn; the New York borough came in on #3, with 281 people making a good profit off of selling their homes for over $1 million.

Trailing closely behind, “the city of Los Angeles, with a population of more than 3.9 million, made 280 people millionaires since the turn of the century,” Robert Demeter reports for PropertyShark, adding that “L.A. isn’t as expensive as some of the neighboring cities in the county, but being spread out with a large number of residents, it’s no surprise it made it so high on our list. Affluent neighborhoods such as Bel-Air, Venice Beach and Brentwood most certainly paved the way for homeowners to become millionaires after selling their properties.”

Other notable markets where people achieved millionaire status by selling their homes are Potomac, MD (182 millionaires), Bethesda, MD (175 millionaires), San Jose, CA (119 millionaires), Queens, NY (93 millionaires), Scottsdale, AZ (86 millionaires), and Plainfield, IL (78 millionaires).

Out of the top 25 “millionaire cities”, 7 are located in the Silicon Valley area, where the median home price regularly goes over the $1 million mark.

It’s worth noting that the study only looked at the profits made off of selling homes in these markets with a sale price over $1 million.

It doesn’t take into account other financial holdings, investments or net worth of these individuals, who may have already been millionaires before selling their homes.

However, it’s a great indicator of markets that are most likely to mint out millionaires after buying local real estate.

Source: fancypantshomes.com

Apache is functioning normally

May 28, 2023 by Brett Tams

When I was considering leaving my full-time job, I had some concerns. My main concern? Health insurance. And it wasn’t just me. Since my husband didn’t have health insurance coverage through his job, he had been covered under my policy for years. Plus, we were going to be adding kids to our family, so we needed to think about them too.

First, we took care of my husband’s needs. About a year ago, he started looking for a private health insurance plan — and since he is a healthy guy, he found an inexpensive one rather easily. And once we adopted the kids, they could also go on his plan with no problems.

So that left me. If I quit my job, I had a few options: 1. Find my own private health insurance plan 2. Go without insurance 3. COBRA 4. Find a non-insurance alternative.

A history of cancer, although it was a very minor case, eliminated finding my own private health insurance plan…at least for 2013. The Affordable Care Act would have eliminated that, of course, but not until 2014. Going without insurance seemed like a crazy choice, especially since medical bills are the number one cause of bankruptcy. For approximately $1,000 per month, I also could have gone on COBRA. I strongly considered using COBRA as a “bridge” to help me make it to the day when my preexisting condition would be covered. However, the last option, finding a non-insurance alternative, was the one I chose. Here is why, how it works, and what I think of it so far.

Although I do not have health insurance, what I do have is an eligible option under the Affordable Care Act. It’s a medical cost-sharing plan that is available to Christians who follow certain guidelines including moderate use of alcohol, and no tobacco or illegal drug use. Although I was unable to find similar options available to people who weren’t Christians, I think creating something like this would be amazing. Like, the vegetarian medical-cost-sharing plan, or the Paleo cost-sharing plan, or basically any overall healthy group. But I digress.

How It Works

When I signed up, I had to choose a level which determined the amount of money that I pay each month. The highest level requires the member to pay $500 per incident. An incident could include surgery, a broken bone, or pregnancy. For instance, if I needed to have my appendix removed, I would be responsible for the first $500 of all doctor/hospital/lab bills, but that’s it. On the other hand, if I have an annual physical that costs $400 with associated labs and testing, I would pay for all of it because I didn’t exceed $500 per incident. Ditto for the next incident. The other levels are less expensive, but require more member financial responsibility.

So each month, I send in my voluntary gift amount (not called a premium since this is not health insurance). This money gets sent to an escrow account, which is then distributed to other members, according to their eligible medical expenses. Certain medical expenses are not eligible, including more recent preexisting conditions. Each month, I get a newsletter that lists members who have ineligible expenses. If I want to, I can send extra money to be used for their expenses.

I’ll be honest: After over a decade of having regular health insurance, this felt like a scary option. But I have seen it work. As I have mentioned several times, my father had terminal cancer years ago. He had multiple surgeries, chemotherapy, radiation therapy, visits to the Mayo Clinic, and many other tests. And he had the same medical-cost-sharing plan as well. His bills were paid, so I knew the plan worked for him. I just hoped that it would work for me.

What I Think so Far

Wouldn’t you know, I had an incident about 10 weeks after signing up. I have paid almost $1,000 in bills so far with more to come, but I have submitted all my itemized bills to the organization, and I am waiting to be reimbursed for all my expenses, minus the first $500. (Just FYI, they do not recommend personally paying bills that are over $1,000. Instead, they recommend that these bills are submitted directly to the organization.) Additionally, I was not required to pay more than $500, but it can take 60 to 90 days for bills to be paid. Since we had the money in savings, I preferred to pay the bills and wait for reimbursements. But that’s just me.)

Another marked difference is my role in my health care now. I didn’t bother to shop around for my medical care before, because no matter which hospital or doctor I chose, I incurred the same costs. But now, I shop around. For instance, when I needed some lab testing, I could have chosen to go to my usual hospital lab or I could have gone to an independent lab, which was half the cost. I chose the independent lab.

Since I am officially a self-pay patient, I have also asked all my providers for discounts. Every time (except once), I did get a discount off my bill, all the way up to 20 percent off. I thought it would be awkward, since I hate negotiating, but it hasn’t been a big deal at all. I just simply say, “Do you offer discounts for self-pay patients?” If they do, super. If not, I deal with it. I also don’t feel bad about it, because insurance companies don’t pay the full price either. In fact, my doctor’s office is small and doesn’t have a standard discount for self-pay patients, so they bill me at the Blue Cross/Blue Shield contract rates.

We were notified that my husband’s and children’s insurance costs are going to double effective January 1, 2014, so I am also considering signing them up too. Our monthly costs, should all of us be on this plan, would be about half of what it would be otherwise. Other than financial benefits, I feel like I am more involved in my health care, and it hasn’t felt more complicated…yet. And this probably sounds really idiotic (like, why wouldn’t I have done this anyway?), but since I am on the hook for more of my costs, I am trying to be more healthful in general so my costs stay down over time.

If interested, here are some medical-cost-sharing websites for further research:

www.samaritanministries.org

www.chministries.org

www.mychristiancare.org

Source: getrichslowly.org

Apache is functioning normally

May 28, 2023 by Brett Tams

To say that today’s housing market is a tough one for first-time home buyers would be an understatement. Not only is housing inventory low, but mortgage rates are elevated at a time when home prices are still pretty high. That’s a very costly combination.

Now, the good news is that today’s first-time buyers aren’t necessarily letting current housing market conditions get them down. Many are still making plans to buy a home this year. But they’re also planning to refinance their mortgages once rates come down.

In fact, 27% of 2023 buyers are gearing up to refinance after purchasing their homes, according to TD Bank’s First-Time Homebuyer Pulse. But while that’s a good plan in theory, it may not come to pass for quite some time.

Mortgage rates may not fall anytime soon

It’s definitely a good idea to plan to refinance your mortgage loan once borrowing rates drop across the board. And you should especially make an effort to maintain a great credit score so you’re able to qualify for a competitive rate once refinancing your mortgage makes sense.

But if you’re going to buy a home today with the plan to refinance your mortgage as soon as you can, know this — you may be stuck with your current mortgage rate for quite some time.

Mortgage rates have been stuck in the 6% range for 30-year loans since the start of the year. And based on general market and economic conditions, it’s not unreasonable to assume that mortgage rates could easily stay where they are not just for the remainder of 2023, but also beyond.

More: Check out our picks for the best mortgage lenders

That’s why if you’re going to buy a home today, you’ll need to really crunch the numbers and make sure you can swing your monthly costs based on the mortgage rate you’re locking in initially. If today’s rates make buying a home a stretch, then you may want to put your plans to purchase one on hold.

Will mortgage rates ever get down to 3% again?

Historically speaking, today’s mortgage rates actually aren’t so high. Rather, it’s that buyers got used to the record low rates that became available earlier in the pandemic.

In 2021, it was more than feasible to sign a 30-year mortgage at or around 3% if you had great credit. These days, you might be looking at more than double that rate, even if your credit is excellent.

There’s a good chance that mortgage rates will drop over time. But whether we’ll see 3% rates anytime soon is questionable. Those rates aren’t very profitable for lenders, so chances are, we’ll only see them on offer if the housing market takes a dive and lenders grow increasingly desperate to drum up business.

But that said, if you sign a mortgage today in the 6% range and rates drop to the low 5% range or upper 4% range a few years from now, refinancing could result in a world of savings. So while you shouldn’t bank on a refinance to be able to afford your home, you can always pursue a refinance once it makes sense to get a new mortgage.

Source: fool.com

Apache is functioning normally

May 28, 2023 by Brett Tams

Credit card pre-approval makes signing up for your first credit card a lot easier.

The credit card marketplace is crowded, and every issuer is advertising to get your attention. But they may not tell you (or only tell you in the fine print) which cards you’re actually likely to get approved for, or which will score you the best interest rates.

A little research into good credit cards can help you cut through the noise, and the pre-approval process helps you narrow down which cards are the best fit for your (cloth or virtual) wallet. It’s a low-risk opportunity to pick the credit card with the features you want — and to make sure you qualify.

What’s Ahead:

What is pre-approval?

Credit card companies are always on the lookout for new customers. One way they find potential cardholders is by pre-screening credit reports from the major credit bureaus.

They identify consumers whose credit scores and reports are in the ballpark of what the company looks for — like no bankruptcies, no delinquencies for several months, and a score below the company’s minimum cutoff.

Then they’ll send a pre-approval card offer to these consumers.

It’s important to remember that pre-approval doesn’t mean you’re automatically qualified for the card. But it does mean you’ve made the “first cut” by fitting the credit card issuer’s most basic requirements.

What’s the difference between pre-qualification and pre-approval?

Some issuers use the term “pre-qualified” instead of “pre-approved.” Though these terms are sometimes used interchangeably, they describe different types of offers based on who initiates the process.

Pre-qualification for a card means the customer (you) makes the first request.

If you’re interested in a specific card, you can go to the company’s website and fill out some basic info. The company responds by showing you the cards and offers you might qualify for if you made a formal application. At that point, you’re “pre-qualified” and can decide whether or not to apply.

Or a lender may invite you to find out if you pre-qualify for their card (through an advertisement, for instance). This isn’t pre-approval, since the lender hasn’t screened your credit yet to see if you’ve made the first cut.

Pre-qualification may be the route to take if you’re brand new to credit — without a credit score, you’re probably not getting on pre-approval mailing lists.

Pre-approval means the credit card company reaches out to you first because you meet their basic requirements. Once they’ve scanned consumers’ credit scores, they let certain consumers know they’ve been “pre-approved.”

Lenders often tap into their existing customer base to find people to pre-approve, as well. If your current bank is rolling out a new credit card, for example, they might send you a pre-approval offer.

Which is better, pre-approval or pre-qualification?

Neither of these processes is better than the other, or more likely to get you final approval. They’re just different ways to review your credit card options.

For both pre-approval and pre-qualification, you’ll go through a soft credit check — a check that doesn’t impact your credit score. This means both processes are relatively risk-free.

The hard credit check, the one that knocks a few points off your score, doesn’t happen until you fill out the longer application for the card.

Read more: Soft pull vs. hard pull – how each affects your credit

How do I get pre-approved for a credit card?

Respond to an offer from a credit card company

If you have time to pick a card and don’t have a lender you prefer, you can wait for the credit card company to come to you.

Companies do still send offers by snail mail, though not as much as they once did. So it’s worth taking a look at any mail offers before dropping them in the recycling bin.

Pre-screened offers are different from the general mailings that companies send to everyone on their marketing list. Look for the words “pre-approved,” “pre-qualified,” or “pre-screened.” The offer may include an invitation code you’ll need to apply for the card online.

One advantage to applying for a pre-approval offer is that they’ll sometimes give you an introductory deal associated with the offer, like a sign-up bonus or a few extra months of 0% interest.

These deals aren’t always advertised to the general public, so they’re a nice pre-approval perk.

Request pre-qualification on a credit card company’s website

Inquiring about a pre-qualification offer may be the best way to get credit card pre-approval if:

You’re new to credit and opening your first credit card.
You’re rebuilding a low credit score.
You want to go through a certain bank or apply for a specific card, and you haven’t received an offer.
You want to check out a wider range of card options.

Most major card issuers that offer pre-qualification have an online link to a simple form. Usually, you won’t enter more than your:

Name.
Address.
Date of birth.
Social security number.

Why is it important to get pre-approved or pre-qualify?

If you’re shopping around and considering lots of different cards, pre-qualification is a risk-free way to compare initial offers before you fill out any applications.

The pre-approval stage allows you to:

Rule out any cards or issuers that you don’t qualify for, so you don’t waste time applying.
Figure out the interest rate range you’re likely to get.
Compare potential sign-on bonuses, loyalty rewards, and other credit card features.
Double-check the card company’s requirements for cardholders, which are more detailed than their pre-approval requirements.

When you take the next step of a formal application, you’re officially applying for new credit. This means the company is required to run a hard credit check. They’ll ask your permission first.

Hard credit checks do show up on your credit score, usually knocking it down only 10 or 20 points. That’s not a huge deal if it happens once in a while.

But if you apply for credit pretty frequently — more than two or three times in six months — your credit score takes a bigger drop.

With pre-approval, you can make sure you’re only committing to the hard credit check if you’re likely to be approved for new credit.

Picking the right credit card to apply for

As a savvy MoneyUnder30 reader, you probably know this already, but I’ll remind you just in case: pre-approval or pre-qualification doesn’t mean the card is the best fit for your needs and lifestyle.

First, spend some time figuring out what you want in a credit card. I suggest asking yourself questions like:

Are you likely to use it for big expenses like travel, or everyday costs like groceries?
Do you want a card where the rewards category matches up with the way you spend?
Is your main goal to start building credit?

Once you know what’s important to you, you can use the pre-approval process to find cards that are a good match.

This is especially helpful if your credit card pre-approval offer suggests multiple cards from the same company. These cards will all have slightly different terms, so take the time to do your research about their differences.

Read more: Best credit cards for young adults & first-timers

How do you apply for a credit card after you’re pre-approved?

The pre-approval or pre-qualification process doesn’t require much info.

You’ll usually enter your name, birth date, address, and your social security number (either the last four digits or the whole number) to confirm your identity.

The official application is a lot more thorough. At a minimum, be prepared with:

Income information. You may or may not need to submit proof of income, depending on the issuer. But you’ll at least have to estimate how much you earn every year.
Housing payment information. This should include how much you’re paying in rent or mortgage a month.
Employment status.
Income details for a co-signer, if someone is co-signing for the card with you.

Read more: How to apply for a credit card (and approval requirements)

What credit score do you need?

It depends. There’s no minimum score that applies to all issuers, so if you have any credit at all, it may be possible to pre-qualify for a card. Of course, the better your credit is, the more offers will be available.

If you don’t have a credit history, it’s a little trickier. Some card issuers consider alternative credit data, like income and work history, to determine financial responsibility.

Read more: What credit score do you need to get approved for a credit card?

After you get approved

If you make the final cut and get approved, not just pre-approved, it’s time to double-check your card terms.

Credit card companies are required to provide the same terms listed in the initial pre-approval offer if they accept you. This means you should get the same interest rate, fee, or bonus that was stated in the offer. Many pre-approvals show a range of interest rates, so they’re required to give you a rate somewhere within that range.

Read more: The best credit cards – MU30’s top picks

Are you guaranteed approval when pre-approved for a credit card?

Not necessarily. A pre-approval or pre-qualification is an invitation to apply, not a guarantee of acceptance. It means there’s a strong chance you’ll meet the standards for cardholders, but the lender needs to know more before actually extending you credit.

Can you get denied after pre-approval?

Remember, pre-approval is just the first step in the process. You can get denied after submitting a formal application, even if you were pre-qualified or were pre-approved.

According to a 2019 report, only around 40% of credit card applicants made the final cut and got approved for a card.

When you officially apply, you’re giving credit card issuers a lot more information about your financial status than you did in the pre-screening stages. This means they’ll judge you a little more strictly.

Here are some of the most common reasons pre-approved candidates get their applications declined:

Your monthly or annual income doesn’t meet the issuer’s minimum cutoff.
Your reported payments are too high relative to your income.
Your credit data has changed significantly since the pre-approval offer.
You’ve taken on debt or missed several payments since the pre-approval offer.
Your income has dropped since the pre-approval offer.

The lender should send you a letter telling you why they made the decision, so it won’t be a mystery.

What if I can’t get pre-approved for a credit card?

If you don’t get any card pre-approvals or pre-qualifications, don’t sweat it. Credit lenders may be looking for cardholders who fit a particular financial profile, and that doesn’t reflect on your general creditworthiness. You still have a number of options.

Try pre-qualifying with another credit card company. Their terms may be more generous or suited to what you need.
Apply anyway. This is a risk because the issuer will run a hard credit check. But if you have stable employment, good income stats, or a co-signer with strong credit, these factors may make up for a less-than-perfect credit score.
Work on improving your credit. Make rent, bill, and loan payments on time. If you’re brand new to credit, you can take out a credit builder loan (as long as you’re able to pay it back on schedule!). Or ask a trusted family member or partner if you can be an authorized user on their account.

Read more: How to build credit the right way

Apply for a secured credit card

For credit newbies, secured credit cards are a nice bridge into the world of credit, and a lot of major card issuers offer them.

You’ll “secure” the card with a deposit — this amount can vary, but think around $200 — which gives you access to a credit line up to that amount. Then you spend just as you would on any other card.

After several months of responsible use, you’ll usually be eligible to transition to an unsecured credit card from the same company.

Read more: Best secured credit cards

Credit card companies that offer pre-approval

Most of the bigger credit card names have pre-approval or pre-qualification forms that are easy and quick to fill out online.

Keep in mind you may not be able to seek pre-approval for every card in the lender’s collection, but they’ll offer a decent range of cards to choose from.

Summary

Whether you’re getting your first credit card or adding one to your collection, it’s worth going through the pre-approval process first. You’ll save time, preserve your credit, and hopefully end up with a great card that will help you achieve financial stability.

Featured image: Roman Samborskyi/Shutterstock.com

Apache is functioning normally

May 28, 2023 by Brett Tams

As affordability challenges conspire to keep would-be buyers out of the housing market, the nation’s two largest mortgage lenders have rolled out programs that allow borrowers with modest incomes to qualify for a loan with just 1 percent down.

Rocket Mortgage, the largest lender in the U.S. in 2022, announced its ONE+ program this week. United Wholesale Mortgage, the No. 2 lender, launched its Conventional 1% Down loans in April — then made them significantly more generous following Rocket’s announcement.

The rival programs piggyback off of Fannie Mae’s HomeReady mortgages and Freddie Mac’s Home Possible loans. Those initiatives allow borrowers who make less than 80 percent of their neighborhoods’ median income to obtain a conventional loan with just 3 percent down.

Both programs come at a time when home prices remain near record highs and mortgage rates are more than double what they were two years ago.

“With affordability being tougher, people are getting boxed out,” says Bill Banfield, executive vice president of Capital Markets at Rocket Mortgage. “Free money helps people want to buy a home.”

How the 1% mortgages work

To make 1 percent down a reality, both lenders cover 2 percent of the 3 percent down payment needed to obtain a HomeReady or Home Possible mortgage. The borrower supplies the remaining 1 percent.

Rocket offers this scenario as an illustration: A buyer of a $250,000 home with a HomeReady or Home Possible mortgage needs at least 3 percent down, or $7,500. Under its new program, Rocket covers $5,000, or 2 percent of that down payment, through a grant. The borrower then needs to put down just $2,500, or 1 percent.

Rocket’s program also covers private mortgage insurance (PMI) at no cost to the borrower. Typically, lenders require borrowers to pay these insurance premiums if their down payment is less than 20 percent. On a $242,500 loan, those premiums can run as much as $245 a month, according to Rocket.

ONE+ is available to first-time and repeat homebuyers, and there are no limits on assets, just income (more on that below).

United Wholesale Mortgage’s program is similar, following the same guidelines as HomeReady and Home Possible. The lender pays 2 percent of the purchase price, up to $4,000. That means the down payment benefit maxes out at $200,000; a borrower who takes a $400,000 loan under the program would get 1 percent of the down payment from United Wholesale Mortgage, and need to come up with 2 percent.

When United announced its program in April, the down payment assistance was limited to borrowers making less than half of area median income. After taking criticism on social media — and after Rocket rolled out its more generous income limits — the lender boosted its income limit to 80 percent.

What are the income limits?

To qualify for the 1 percent down programs — or any HomeReady or HomePossible loan — you can’t make more than 80 percent of the median income in the area where you’re buying. Those figures vary widely throughout the U.S. A few examples of the 80 percent limit:

Atlanta	No more than $76,560
Chicago	No more than $84,560
Dallas	No more than $76,480
New York City	No more than $90,080
San Francisco	No more than $120,880

To see income limits in your area, enter an address into this map on Fannie Mae’s website.

Is there a catch?

These programs are a sweet deal for borrowers — so much so that there’s no guarantee the terms will stay the same, as evidenced by United Wholesale Mortgage’s decision to boost income limits.

What’s more, the down payment assistance is so generous that the nation’s two largest lenders could decide to pull the plug.

“Some of the features on this are costly for the lender,” says Rocket’s Banfield. “We’ll have to see how it all plays out.”

Another risk for borrowers: They could find themselves owing more than their homes are worth. Median home prices shrank 1.7 percent from April 2022 to April 2023, and home values could keep declining. For homebuyers who put just 3 percent down, a 5 percent decline in local home prices could put them underwater.

The Great Recession infamously played up the dangers of buying with little equity — but it’s worth pointing out that the mortgage market and housing sector are on much firmer footing now than they were 15 years ago. What’s more, borrowers still must qualify based on such factors as debt-to-income (DTI) ratio.

“There’s no stretching the underwriting,” says Banfield.

More lenders are getting creative

In another nod to the challenges facing buyers in a still-expensive market, Movement Mortgage this month announced it’s now allowing FHA borrowers to take out a 10-year second mortgage to finance the 3.5 percent down payment required for FHA loans. In effect, this eliminates the need for borrowers to put down any money upfront. To qualify, you must have a credit score of 620 or higher.

That offer is just one way lenders are responding to the one-two punch of an affordability squeeze and a sharp slowdown in mortgage applications since 2021. Lenders have been rolling out all manner of mortgage promotions, including rate buydowns paid for by the seller and discounts on future refinances.

In another variation on the theme, Rocket earlier this year unveiled a new credit card that allows homebuyers to earn up to $8,000 towards closing costs and a down payment. The Rocket Visa Signature Card offers a generous 5 percent back on all purchases, up to the limit — with the stipulation that the rewards are worth full value only if you ultimately get your home loan from Rocket Mortgage.

Other low-down payment mortgage options

Mortgage lenders and regulators recognize that down payments are one of the primary obstacles to homeownership, so there are several low- and no-down payment loan options. Loans backed by the U.S. Department of Veterans Affairs (VA), for instance, don’t require a down payment.

Aside from HomeReady and Home Possible conventional loans, here are other options for buyers looking to make low down payments:

FHA loans: Insured by the Federal Housing Administration (FHA), FHA loans allow borrowers to put down just 3.5 percent with a credit score of 580 or higher, or at least 10 percent with a score as low as 500. However, FHA borrowers with less than 20 percent down have to pay FHA mortgage insurance premiums (MIP) for the life of the loan.
USDA and VA loans: USDA and VA loans don’t require any down payment, but they’re only for specific types of borrowers: USDA loans for borrowers in certain rural areas and VA loans for active-duty service members, veterans and surviving spouses. Neither charge mortgage insurance, but USDA loans come with guarantee fees and VA loans come with a funding fee.

Source: bankrate.com

Apache is functioning normally

May 28, 2023 by Brett Tams

While I rarely stray from my neutral-loving ways, when Spring approaches, I always get a craving for a punch of color. And right now all I’m seeing is green. I’m hereby declaring it the spring color trend to watch!

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Whether applied with a light hand like mint or sea foam, or deeply saturated like those emerald kitchen cabinets and that delicious bold green bookcase, a hit of green is going to give energy to your space. It makes sense since according to the Google, green is “the color of life, renewal, nature, and energy, is associated with meanings of growth, harmony, freshness, safety, fertility, and environment.” I love the way green pops but is still calming. It’s not an in your face color. It can almost act as a neutral.

It’s always going to be hard for me to stray from my black, white and camel loving ways, but I just might push myself to adding a pop of green to the new house. Do you double dog dare me? I won’t even cheat and use a houseplant. Here are a few things I currently have my eye on.

apt34easybeinggreen

couch // rug // art // lamp // pillows // vase // mohawk match strike // chair

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Source: apartment34.com