Encompass

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Dark Matter Technologies, formerly Black Knight Origination Technologies, is focused on mainly two things: the smooth transition to new owners, and lowering the cost to originate loans for lenders.

Executives from Dark Matter Technologies, under the Constellation Software umbrella, said that a down market is the best time to make investments in technology and prepare for the next cycle.

With lenders focused on bringing origination costs down in a tough origination environment, the firm saw up to a 300% year-over-year growth in new user numbers for the past couple of years.

“We actually do well in any kind of market,” Rich Gagliano, CEO of Dark Matter Technologies and former president of Black Knight, said in an interview with HousingWire on Friday.

“Now we’re in a down cycle, they need to do it with fewer people and they need to be more efficient to get the cost down. So it’s really the same story, just different markets,” Gagliano said.

Dark Matter Technologies, which completed the acquisition of Black Knight’s Empower and Optimal Blue last week, will be working towards a smooth transition over to Constellation Software with its 1,300-plus employees for the remainder of the year.

The company doesn’t plan to raise pricing for Empower and is focused on services and products that will drive down the cost of origination and employee borrower retention, executives said. 

Gagliano, Sean Dugan, CRO of Dark Matter Technologies and Tom George, co-president of Romulus, part of the Perseus Group of Constellation Software, participated in the interview.

Read on to learn more about Dark Matter Technologies’ plan for mortgage.

This interview has been condensed and lightly edited for clarity.

Connie Kim: Constellation’s Perseus Group has a pretty big real estate portfolio. What were the reasons for buying Black Knight’s Empower and Optimal Blue? What opportunities did the firm see?

Tom George: The way Constellation operates is that we focus on acquiring vertical market software companies and portfolios of vertical market software companies with the intent to stay in these industries forever. 

We started almost 20 years ago and Perseus in the homebuilding industry, we built a significant player in homebuilding software, that led us to an adjacency residential real estate where we bought over 20 companies. More recently, we started acquiring businesses in the mortgage tech space. 

We plan to be in the mortgage tech space forever. And we plan to continue to acquire there. 

Kim: What other mortgage tech companies has Constellation Software acquired?

George: We’ve acquired three other businesses in the mortgage space. We bought Mortgage Builder Software from Altisource Portfolio Solutions in 2019. There have been two additional acquisitions – ReverseVision, which is a leader in the reverse mortgage LOS space, and then a document storage product called Back Support.

Kim: Are you expecting any layoffs during the transition? Will the same management from Black Knight’s Empower and Optimal Blue be in place? 

Rich Gagliano: We’re not expecting any changes. [About] 1300 [employees] are going to move over with us and it’s business as usual.

Kim: It’s a tough mortgage origination market right now. How does the company expect to manage profit amid industry consolidation, bankruptcies and attrition?

Gagliano: We’ve seen a strong pipeline. Even though the markets are down, what we encourage and talk to clients about is when you’re slow, that’s the best time to make technology changes. Now is the time for that change, and get yourself ready for the next cycle.

We actually do well in any kind of market. But honestly, when the market is crazy, lenders are looking for efficiencies because they can’t find and hire enough staff. Now we’re in a down cycle, they need to do it with fewer people and they need to be more efficient to get the cost down. So it’s really the same story, just different markets.

Kim: I definitely hear a lot of mortgage tech companies saying ‘this is the time to invest, especially when the market is down.’ You mentioned a strong pipeline, are we talking about new clients? 

Sean Dugan: We’ve had 200% to 300% growth year-over-year for the last couple of years. And we don’t see that backing up. Those are not financial metrics, that was just on the number of clients acquired. When we took the Empower LOS platform to the down- to mid-market clients and really focused on that, we saw the number of acquisitions per year grow in a really significant fashion. 

Kim: Empower has an estimated market share of around 10-15% after ICE’s Encompass which takes up about 40 to 45% of market share. How does Dark Matter plan to compete against Encompass?

Gagliano: We believe strongly in technology. We’re generally in most of the deals when we know about them. We believe that the automation, and the technology and the solution that we bring, and the ecosystem that we have, is best in the industry and really helps these lenders drive cost out of the system.

We compete with multiple product providers out there, including Encompass. But we like where we are positioned and I think our clients like the innovations that we’ve brought over the past over years.

Kim: When I talk to lenders, they say when using a company’s LOS, using the same company’s add-on products makes it more cost-efficient and seamless. What are some of the add-on products the company has already developed or is seeking to develop to win over lenders?

Gagliano: Just over the past couple of years, we’ve added Ava, which is our artificial intelligence capability. Ava has added a couple of additional products over the past two years. We’ve added an underwriting efficiency product, we’ve added a post-close product that’s going into production – so fairly new products.

We’re going to continue to use the products that we have in our bundle today and sell those so no changes there. But we are incrementally adding new technology, new innovations, that are going to help drive that cost down.

Dugan: We’ve also delivered digital portals for each one of our business channels within Empower, which would include retail, wholesale, correspondent, home equity and assumptions. We also have business intelligence as a component, and then a vendor aggregation platform, which was by the name of Exchange. Those are some of the components that make up the Dark Matter-owned bundle of services within Empower.

Kim: I know Ava has some kind of AI aspect to it. Right now, a lot of mortgage tech companies are focusing on AI. How they’re going to utilize AI to be that middleman between the customer and the loan originator. I’m curious how Dark Matter is going to integrate AI and machine learning (ML) to the LOS and other products.

Dugan: Regardless of what the technology solution is, clients are looking for flexibility, configurability – things that they can configure to meet their particular requirements. They’re looking for a really significant return on their investment, and they’re looking to drive the cost of origination as well as employee and borrower retention.

Kim: One of the concerns about the ICE-Black Knight merger was the fear that ICE would raise prices on the LOS products. Will there be any pricing changes for Dark Matter Technologies?

Gagliano: We don’t have anything planned at this point. Our Constellation partners haven’t asked us to come in and raise prices. That’s not part of their strategy, their strategy is to acquire quality companies and run the businesses.

Kim: Who does Dark Matter Technologies consider as competitors right now?

Dugan: It’s any origination technology provider. There are a number of providers that are delivering services specific to underwriting capabilities, so we would compete with them. So I think it’s a host of providers and vendors across the ecosystem of this particular vertical that we compete with on a day-by-day basis.

Kim: What are your prospects for the remainder of the year for mortgage origination? What are some of the larger goals for Dark Matter Technologies?

Gagliano: Through the end of the year, we’re going to be transitioning to Constellation moving off Black Knight Technologies. We’ve added some corporate-level capabilities already. So we feel good about where we are and stay focused on that through the end of the year.

Source: housingwire.com

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Hedging, PPE, Fee Collection, QC Products; Gov’t and Conforming News; Producer Inflation Alive and Well

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Hedging, PPE, Fee Collection, QC Products; Gov’t and Conforming News; Producer Inflation Alive and Well

By:
Rob Chrisman

Thu, Sep 14 2023, 11:15 AM

This morning I head from Chicago to Orlando along with 74 million others (yearly). More fun with numbers: Although the MBA thinks we’ll fund about $1.7 trillion in 2023, weekly applications continue to reflect a declining market so let’s use $1.5 trillion to make the numbers easier. That averages out to $6 billion per business day of production. The Fed is looking to offload $13 billion in MBS from bank seizures. To keep things in perspective, that is only two days’ worth of production, certainly not enough to “swamp the boat.” Perspective is good, and here’s another example. Higher and volatile interest rates, uncertainty about property values, and stresses in some property markets have increased pressure on some loans and properties. Accordingly, MBA reported that commercial and multifamily mortgage delinquencies increased in the second quarter of 2023. Even with the uptick in delinquency rates, they remain at the lower end of historical ranges. Loans backed by properties (and property types) with stable cash flows, are faring better than those that may have seen declines in incomes. (Today’s podcast can be found here and this week’s is sponsored by SimpleNexus, an nCino Company, and award-winning developer of mortgage technology for modern lenders. Hear an interview with C2 Financial and Revest Homes’ Jim Black on how originators can win business in a tough rate environment.)

Lender and Broker Software, Products, and Services

Amidst changing QC requirements and increasing repurchase risk, lenders must invest in automation to drive efficiency and protect profits. The industry needs to shift its focus from crisis management to prevention with proactive QC. Not only does this approach set lenders up for success regardless of the origination environment, but it’s also a regulatory imperative now that Fannie Mae requires lenders to conduct pre-funding QC on a minimum of 10% of their production. ACES Quality Management empowers mortgage lenders and servicers to take control of their operations and embrace proactive QC. ACES seamlessly combines cutting-edge technology with comprehensive data analysis, giving mortgage professionals the tools they need to identify, anticipate and rectify potential issues in near real time. Learn why financial institutions and third-party providers rely on ACES.

“Looking for a full-service depository bank that will help you achieve your long-term growth plans? NexBank has been a dependable lender to our clients through all business cycles. We’ve been in the wholesale, correspondent, and warehouse lending business since 2008 and don’t compete with our clients for retail originations or refinancing business. Our long-tenured account executives, with an average of 24 years of industry experience, know our business well and are dedicated to helping you grow yours. This month, we celebrate the 15th anniversary of three professionals who have contributed to the success of our clients and NexBank. Lance Hackney with $4 billion closed volume; Brandi Horton with $4.5 billion closed volume; and Steve Smith with $5 billion closed volume. We support all channels: Wholesale, Non-Delegated & Delegated Correspondent with Portfolio, Conventional, FHA, and VA products, and offer Delegated & Emerging Banker Warehouse Lending and Escrow Deposit Management. Email Jon Hodge to reach an AE. Member FDIC. Equal Housing Lender. NMLS 672886.”

If you’re using Encompass® by ICE Mortgage Technology™ and you’re not using Fee Chaser to collect your upfront fees you it’s time to get your act together. Fee Chaser enables your borrowers to pay their upfront fees right from a text message. No more missed appraisal fees, no more paper checks, no more credit card numbers floating around on printed forms. Check out Fee Chaser here and they’ll text a demo right to your phone.

“Optimal Blue’s market-leading product, pricing and eligibility (PPE) engine has been the industry’s preferred choice for years because of our ability to serve our clients’ needs. With Optimal Blue’s open-API platform, our clients can access and use all of the functionality that exists in the Optimal Blue PPE via APIs, including creating customized rate quoting tools, fully automating lock events, and ensuring LOs have on-demand access to product and pricing where and when they need it. Reach out to Optimal Blue today to learn more about our open-API platform and how you can use it to unlock hidden efficiencies and improve your business!”

Government and Other Conforming Program News

Plaza Home Mortgage® reminded brokers of the ins and outs of getting government deals done. Here are five really great reasons to look to Plaza first for your government loans:

Manual underwriting may be an option for loans that do not get an approval through AUS-Total Scorecard (manual underwriting requirements apply). FHA and VA FICOs down to 550. USDA FICOs down to 600. Cash-out allowed on FHA and VA. Experienced Underwriting team that is willing to go the extra mile for your borrower.

Effective August 25th, the Attorney Authorization Approval (AAA) Matrix is available within Property 360™ on both the Claims and Excess Fees landing pages. The matrix remains accessible on the Excess Attorney Fee – Cost Guidelines webpage in the Single-Family portal.

Federal Housing Agencies issued a reminder for mortgage assistance for those impacted by the Maui Wildfires. In a joint statement, the Federal Housing pledged their offices’ ongoing support for Hawaiian residents affected by the devastating wildfires on the Hawaiian island of Maui.

Hurricane season has begun, MBAF provided a reminder of MBA’s Disaster Recovery Resource Guide. This guide outlines what to do before and after a natural disaster, along with how to start, and then, work through the recovery process. Additionally, another resource available is Hurricane Help FAQs.

Fifth Third Correspondent Lending Communiqué 2023-6-9.1.23 has the following topics:

Final Document Reminder, as a reminder, Fifth Third expects Final Title Policies and Recorded Mortgages to be delivered within 90 days of the loan purchase date. Excessively aged documents will be assessed a fee per section 1.07 of the Correspondent Seller Guide.

Maximize Cash Out with Loan Stream Mortgage Non-QM Closed End Seconds. Program highlights include clients can Access Equity with our Non-QM CES Cash Out Refi: 90% CLTV Full Doc, 85% CLTV Bank Statements, 80% CLTV Investment Properties and 75% CLTV DSCR. Also available on Purchase, Rate/Term Refinance & Cash Out.

Chaos has a way of bringing on unexpected opportunities. Plaza Home Mortgage®. Co-President and COO, Michael Fontaine, shares with National Mortgage News how Plaza navigates in the evolving wholesale landscape. From diverse strategies to tapping into improved technology plus Plaza’s training offerings to help amplify broker clients’ strengths, take a look.

Plaza Home Mortgage® Jumbo opportunities keep getting better, now offering 2-1 and 1-0 Temporary Buydowns on its new Jumbo Elite loan program. Get in touch with your Account Executive for the qualifying details. Explore the complete range of Jumbo solutions Plaza offers for your borrowers.

Capital Markets

Why do those in the mortgage space watch the 10-year U.S. Treasury note? Historically, the 10-year U.S. Treasury yield has been considered a key benchmark for mortgage rates. Mortgage rates, however, are not actually based on the 10-year U.S. Treasury note (as is commonly believed). MCT released a blog, “How the 10-Year U.S. Treasury Note Impacts Mortgage Rates” that serves as an excellent primer for how mortgage interest rates respond to moves of the benchmark U.S. Treasury note. The piece discusses why mortgage rates and Treasury yields move together and how bonds are influenced by Treasury yields. With a trusted capital markets partner like MCT, you can rest assured that you will be notified of how economic trends could have the potential to impact your business. Sign up for MCT’s newsletter to receive educational articles like this one and learn more about variables that impact mortgage rates.

In rate news, even though inflation in August showed a larger than expected increase in core CPI (actual 0.3 percent when it was expected at 0.2 percent), it showed ongoing improvement on a year-over-year basis, enough to prevent any significant change in Fed rate hike expectations. The implied likelihood of a rate hike in December sits around 46 percent.

Digging into the numbers, gasoline prices contributed to nearly half of the increase to the headline number, rising nearly 11 percent over the month, and that inevitably had some trickle-through impact on the core reading, as transportation services were driven higher by energy prices. The 3.7 percent year-over-year rate of CPI is still well above the Fed’s 2 percent target, reflecting stickiness that, while probably not compelling enough to the Fed to raise rates further at this point as the trend in inflation has downshifted since the spring, will certainly keep the Fed in a “higher for longer” mindset. Looking forward to the FOMC meeting next week, another pause in rate hikes is already baked in, so the importance is actually much more about rate decisions in November, December, and January.

Today’s economic calendar is under way with several releases. Events kicked off with the ECB releasing its latest monetary policy decision (+.25 percent, as expected, in an effort to continue to tame inflation) followed by ECB head Lagarde’s press conference. The U.S. calendar is also under way with retail sales (+.6 percent for August, much higher than expected), the Producer Price Index (+.7 percent, much stronger than expected, core +.3 percent), and weekly jobless claims (220k, 1.688 continuing). Later today brings July business inventories, Treasury announcing the sizes for next week’s reopened 20-year bonds and 10-year TIPS auctions, and Freddie Mac’s latest Primary Mortgage Markets Survey. We begin Thursday with Agency MBS prices worse a few 32nds from Wednesday evening, the 10-year yielding 4.27 after closing yesterday at 4.25 percent, and the 2-year at 5.02 after this slew of economic news.

Employment

“Foundation Mortgage is rapidly expanding after several record months and is looking for top tier experienced Non-QM account executives to join our team. We have a vast array of non-QM products to choose from and common-sense underwriting. We make exceptions that other lenders won’t. If you are looking to join an experienced team that knows how to get loans done contact Dean Ayres.”

On the heels of the successful acquisition of Platinum Home Mortgage Corp, Planet continues its appetite for retail acquisition by looking to consolidate several independent bankers into its organization. If your firm is seeking better economies of scale or a strategic exit, let’s talk. With our strong multichannel support, speedy turnarounds, dedicated recruitment, and customer retention, Planet will give you a remarkable edge. Please contact Lee Gross to find out what Planet could do for you. All inquiries will be held in strict confidence. Confidentiality will also be honored for single MLOs or smaller sales teams who contact VP of Talent Peter Briggs or 435-709-6287.

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

Source: mortgagenewsdaily.com

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Colorado’s breathtaking landscapes, from the soaring Rockies to the expansive plains, draw homebuyers seeking a piece of its natural beauty. Yet, diving into the real estate market here is not without its complexities. At the forefront of a successful home purchase is the crucial step of the home inspection. This process, pivotal in identifying potential issues and ensuring a sound investment, can often be daunting for prospective buyers.

In this comprehensive Redfin guide, we’ll help you navigate the ins and outs of Colorado home inspections, shedding light on the essential considerations for ensuring your Rocky Mountain property is a secure and wise investment. So whether you’re buying a house in Denver or exploring homes in Colorado Springs, keep reading to learn everything you need to know about getting a home inspection in Colorado. 

Why should you get a home inspection in Colorado?

“Getting a home inspection in Colorado is crucial for both buyers and sellers,” says Bryan Persons of Brian Persons Front Range Home Inspections. “As a Certified Master Inspector serving Northern Colorado for over 20 years, I’ve observed that Colorado’s diverse climate and unique geological conditions can impact a property’s structural integrity, foundation, and systems. An inspection helps ensure transparency, uncover potential issues, and facilitates informed decisions in this dynamic real estate market.”

“A great reason for homebuyers in Colorado to get a home inspection is to gain leverage in the negotiation process,” says Mark Jones of Top Choice Inspectors. “When you understand what repairs might be needed currently or in the next few years, your real estate agent can use this information to improve the asking price and get you the best possible offer.”

Are there any specialized inspections that Colorado buyers should consider?

Given Colorado’s unique geography and climate, there are specialized inspections that homebuyers might consider in addition to the standard home inspection. The state’s diverse terrain, ranging from high-altitude mountains to semi-arid plains, can present specific challenges to structures. For instance, in mountainous regions, inspections for snow load capacity on roofs might be pertinent. In areas prone to wildfires, a thorough inspection for fire-resistant materials and landscaping could be beneficial.

Additionally, radon testing is recommended statewide due to the natural uranium breakdown in the ground. “Radon, commonly found in Colorado, poses a health risk due to its potential to cause lung cancer,” says Ruben Rojo of Villa Vista Inspection Services. “Similarly, the importance of sewer scopes as a hidden but vital house system inspection should not be overlooked, as detecting problems could save significant expenses. When purchasing a home, it’s crucial to consider both of these additional services.”

Are home inspections required in Colorado?

While not mandatory, they’re highly recommended. Assessing a property’s condition can prevent surprises post-purchase. Knowledge is power in real estate transactions.

“Home inspections are not required for buyers in the state of Colorado, and many buyers in the last few years have waived inspection objections due to competitive markets, says Doug Fast of Quality Building Inspections. “That said, it certainly is a wise choice to still have the property inspected as a trained home inspector can find functional or structural concerns that may not be apparent to the typical home buyer.”

How much does a home inspection cost in Colorado?

“The cost of a home inspection in Colorado can vary based on factors such as the square footage of the home, its age, location, and the specific services you can add to the inspection,” says Jeremiah Killebrew, owner of 5280 Property Inspections. “On average, you can expect to pay somewhere in the range of $300 to $600 for a standard home inspection. However, keep in mind that these figures are approximate and can vary.”

Can you sell a house in Colorado without an inspection?

While it’s not legally required to conduct a home inspection when selling a house in Washington, it’s strongly advisable for both sellers and buyers. A pre-listing inspection can help sellers identify and address potential issues upfront, increasing the property’s appeal and potentially leading to a smoother transaction. It can also help build trust with prospective buyers. Ultimately, while it’s not mandatory, a home inspection in Washington is a prudent and customary practice to ensure transparency and minimize surprises during the selling process.

Expert advice for buyers and sellers getting a home inspection in Colorado 

“If a home inspector finds an issue with a home, they will recommend that you have a professional engineer look at the issue,” says Tony Evans of Encompass LLC. “Some professional engineers also provide home inspections.”

Michael Wiemals from Cottage 2 Castle and Ben Cobian of 5 Star Home Inspections recommend having your home inspected by a nationally licensed home inspector. Not all Colorado inspectors are licensed, but those that are, will be less likely to overlook major concerns during an inspection. 

“Colorado does not require a license and getting through a 90-hour online certification course does not ensure your inspector is capable of properly inspecting a home,” adds Wede Hunsinger of Aspire Property Inspections. “It’s important to make sure your inspector has a background in construction with at least 5 years experience or engineering.”

“Never skip a home inspection, says Brent Fletcher of Fletcher’s Home Inspections. “The state of Colorado does not require any certifications to be a home inspector. When searching for a home inspector, ask if they are certified and remember, the cheapest inspection is not the best option.”

Getting a Colorado home inspection: the bottom line

In the picturesque landscape of Colorado, ensuring the integrity of a property is paramount for both buyers and sellers. Whether it’s for negotiation leverage, health concerns like radon, or cost-effective issue detection, home inspections are a key step in the homebuying process.

Source: redfin.com

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Encompass Lending Group, a subsidiary of real-estate services platform Fathom Holdings, has acquired Austin, Texas-based Elite Financing Group, the company announced Thursday. Terms of the deal were not disclosed.

Elite Financing Group will operate under the umbrella of Cary, North Carolina-based Encompass, which has a presence in the Dallas-Fort Worth area.

“With Elite Financing Group’s current book of business and their local relationships, we have the potential of nearly doubling our mortgage closings,” across the country over the next year,” Joshua Harley, CEO of Fathom said in a statement. Elite brings local market expertise which should help strengthen Fathom’s mortgage business in Texas, he added.

Elite Financing Group has two branch locations in Austin and The Colony with 28 sponsored mortgage loan originators (MLOs), according to the Nationwide Multistate Licensing System (NMLS).

Founded in 2005, Elite posted $164 million in production volume across 465 loans over the past year, according to mortgage data platform Modex.

Encompass Lending Group, with 11 active branches in seven states and Washington, D.C., has 58 sponsored MLOs, per NMLS data The lender is registered in 47 states and originated $148.5 million production volume across 495 loans in the past year, according to Modex.

The mortgage industry’s effort to rightsize from the refi boom is fueling merger and acquisition activity in the field.

For example, retail lender Guild Mortgage this week acquired First Centennial Mortgage, a privately-held Illinois-based lender with 15 branches. 

In addition, Texas-based Mr. Cooper Group acquired Home Point Capital Inc. earlier this month, a transaction that included the assumption of $500 million in bonds.

Following the expiration of a final tender offer, Mr. Cooper closed its acquisition of Home Point through a vehicle called Heisman Merger Sub.

Independent mortgage banks (IMB) reported an average net loss of $534 on each loan originated in Q2, an improvement from a net loss of $1,972 per loan in Q1, according to the Mortgage Bankers Association (MBA). 

The figure is still lower than the average net loss of $82 per loan in Q2 2022, and 58% of companies had a profitable second quarter this year.

Source: housingwire.com

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Creating a sleek space is simple and can involve elevating pieces you already own.

If your living room is feeling dull or just plain outdated, elevating your living space to have a more modern and sleek feel is your solution. Modern decor seamlessly blends style with functionality, creating an ambiance that feels timeless but also in the moment. It’s also important to note that modern and contemporary styles hold key distinctions, and we’ll note some differences to look for later.

From the muted perfection of neutral tones to the boldness and power of a few carefully placed statement pieces, our 13 tips will transform your living room into a modern masterpiece. No matter your personal aesthetic, crafting a living room that transcends time and trends feels unmistakably modern.

What makes a modern space, modern?

Modern decor is defined as distinct features that, together, create a sleek, clean and sophisticated aesthetic. As decor trends evolve and experience fluctuating popularity, modern decor shines in what seems to be timelessness. However, like everything else, modern decor retains some strong influences with aesthetics developed decades ago.

That’s perhaps why the term “modern” is frequently misused in the realm of interior decoration. Its confusion with the contemporary style is fairly widespread.

The modern style that we encounter today actually stems from a German design movement that originated at the cusp of the 20th century, specifically the Bauhaus movement. This so-called “modern” style in furnishings and decor dominated the early-to-mid 20th century before transforming to another style we love today, mid-century modern.

Modern design pays homage to natural materials, employs neutral or earthy tones and embraces a minimalist approach by removing excessive embellishments. While contemporary styling can encompass a diverse color palette that carries some brash, bohemian influences at times, the modern style more strictly adheres to monochromatic hues in lieu of anything overtly loud or adventurous.

Modern vs. Contemporary: Telling Them Apart

Because the distinctions between modern and contemporary styles still probably seem confusing, we’ll break it down into bullet points so you get the exact style you’re going for. If contemporary calls to you, great! You’ve found new language for the look you envision, and that’s never a bad thing.

Modern

  • Functional furniture pieces with clean lines
  • Minimalistic vibes, mid-century influence
  • Neutral color usage throughout most of the room
  • Furniture that serves more than one purpose
  • Sparse natural material embellishments that add visual interest

Contemporary

  • An eclectic fusion of diverse influences
  • Bold patterns and textures, and sometimes colors
  • Dramatic and sculptural lighting fixtures
  • Functional art pieces that blur the line between form and function
  • Global inspirations
  • Signature furniture pieces with unique silhouettes and unconventional shapes
  • Eclectic mix of classic pieces with modern elements

13 modern living room tips to update your space

The key to a successful modern living room design is finding a balance between functionality, aesthetics and your personal style preferences. These tips offer guidance to work conjunctively with your own unique tastes to achieve your modern masterpiece.

1. Paint the walls a neutral color

If you’re allowed to paint your walls in a rental (make sure to check with your landlord first), this is a great way to set the modern tone in your space. Whether that be a crisp off-white or a cool grey, neutral wall tones can shift the space from feeling dull to more modern in a few paint strokes.

2. Install open shelves

An open display shelf is a great way to combine clean lines and functionality. For a rustic modern look, try a wooden ladder propped up against the wall and adorned with your favorite decor items.

3. Adorn the room with a natural rug

Modern living rooms often feel too simple, leading to a sterile feeling that just isn’t homey. Add visual interest to the space with textures like a natural rug. A faux cowhide rug, furry rug or even a woven jute rug can break up the monotony of neutral tones and minimalist furniture while maintaining a stylish and inviting atmosphere.

4. Illuminate the room with a simple floor lamp

By incorporating a simple floor lamp into your modern living room decor, you create a well-lit and visually appealing space. This piece offers some creative freedom when it comes to choosing the style of the lamp.

5. Make a statement with an artistic focal piece

A statement art piece serves as the visual center of attention in your living room. It’s the first thing that catches the eye when someone enters the room, which sets the tone for the entire space. This is important in modern design, where bold and captivating art piece breaks the monotony of minimalism and adds intrigue.

6. Opt for acrylic or glass pieces

Acrylic and glass pieces are a great option for working with a limited color scheme. Plus, they look space-age and modern. For example, a transparent coffee table creates sleek sharp lines while naturally matching the colors around it. Acrylic furniture is also inexpensive and is easily repurposed in other rooms.

7. Add smart home technology

Part of the modern aesthetic is the newest and freshest technology. Smart devices complement modern spaces well and seamlessly integrate into the sleek and minimalist design. Think smart lighting, speakers and other on-trend appliances.

8. Go bold with geometric patterns

Introduce modern geometric patterns through rugs and throw pillows to infuse a contemporary vibe. Choosing a pattern that resonates with your personal taste is a great way to add personality to the space as well.

9. Play with decorative mirrors

Mirrors are great decor pieces that naturally reflect light which helps the space feel larger. On top of their benefits related to room size, they’re also neutral when it comes to fitting a color scheme. (And if you liked the one we featured two photos up, we linked to one similar to it here.)

10. Create continuity with strategically placed wood items

Wooden furniture is a staple when it comes to monochromatic living rooms. The natural color of the wood often seamlessly fits into the feel of the room, while remaining a timeless piece with repurposing opportunities in other decor themes down the road.

11. Remove furniture to create negative space

Negative space, which is defined as the intentional creation of empty spots, is a common theme in modernly decorated spaces. Less is more in a modern living room, so purging unnecessary decor items and furniture is a must.

12. Add wall-mounted shelves and open up floor space

If you struggle to fill large open shelving and want to utilize wall space, opt for wall-mounted storage, like floating shelves. This also creates more negative space, helping give your space a more modern feel.

13. Make use of monochrome

Picking one color and using varying shades is the most common theme found in modern decor. The easiest way to go about crafting your color scheme is to select a base color and gather shades, tints and tones of that color. Create depth with contrasting light and dark variations by consulting paint experts or using color templates on Pinterest and other design platforms.

Your modern living room awaits

Incorporating these tips can help you craft a modern living room that exudes confidence and functionality while keeping with the times. With these tips and recommendations, you can easily achieve a modern living space that embraces both contemporary aesthetics and your unique preferences — even without hiring an interior designer.

Remember, modern design is about embracing simplicity and making every piece count, resulting in a space that feels efficient and effortlessly up-to-date. Find your dream apartment to make your modern muse today!

At Rent., our goal is to be the most efficient digital resource to help people find and live in a place they love. We strive to help renters make informed decisions by providing them with valuable information and advice, including money-saving tips, local guides, HD photos and certified ratings and reviews from actual residents.

Source: rent.com

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And what is Better.com best at?

According to Garg, the company has developed a one-day mortgage product that provides a commitment letter within 24 hours. It is possible, said Garg, because of Tinman, a platform that interacts directly with the customer — meanwhile, in other platforms in the market, a human extracts information from borrowers, he said. 

Better wants to sell this platform to other companies, becoming a “mortgage-as-a-service” company or a white-label provider of mortgage tech, Garg said. When asked how relevant this business will be, Garg refers to Amazon, a company that drives two-thirds of its sales from third-party sellers. “We aim for a similar mix.”

It took Better two years to go public. The transaction will result in an infusion of up to $750 million from sponsors Novator Capital and SoftBank. The business combination closing, announced Wednesday, unlocks approximately $565 million of fresh capital, including a $528 million convertible note previously committed from affiliates of SoftBank and additional common equity from funds affiliated with NaMa Capital (formerly Novator Capital).

The company went from a $500 million profit and 11,000 employees in 2020 to only 950 employees by June 2023. It incurred an $89.9 million loss in the first quarter of 2023. During this period, Better faced the deterioration of the mortgage market due to surging rates, along with the fallout from bad press after Garg laid off employees via Zoom in December 2020. 

Garg said the company has come a long way from that episode. “I’ve gone through extensive coaching and professional development,” he said. “Better is a much more mature company, and I’m a much more mature and empathetic leader than I was.”

Garg offered his views on the company’s IPO strategy in an interview with HousingWire at Better’s New York office.

This interview has been condensed and edited for clarity.

Flávia Nunes: Better took nearly two years to go public, with Aurora’s shareholders’ merger approval extended three times. What happened, from your standpoint? 

Vishal Garg: I can’t comment on the process at the SEC. But all I can say is that it was worth it. In that time, the market, the industry and the consumer changed dramatically. We went from the lowest interest rates on record to the highest interest rates on record in the past 20 years, from great housing supply to the most constrained housing supply in many years. We’ve just worked hard to address all of these challenges head-on.

Nunes: The transaction will infuse the combined entity with $750 million in new capital. How will Better use these resources? And what role will SoftBank play?

Garg: The first thing is: we’re going to be very prudent because we’re still in a very bad macroeconomic climate for mortgages and housing in general. Secondly, we are going to continue to invest in our technology and drive products, like One Day Mortgage, that are innovative and groundbreaking and drive the adoption of those products across the industry.

[SoftBank] will be a significant shareholder—no seats on the board. Being public means I have to answer to a whole new set of shareholders, which we’re happy to welcome, and other than that, we will drive innovation and growth.

Nunes: How is Better prepared for the scrutiny of being a public company? 

Garg: We’ve had a lot of scrutiny from external sources. We passed our first CFPB exam with really great results. We have been subject to multiple Fannie Mae audits, all with great results. We generally have viewed our ability to have a technology platform where the technology makes the decisions rather than people making the decisions, and technology creates tasks for the consumer rather than people creating paths for the consumer. That technology platform has helped us maintain best-in-class compliance and regulatory audits. We’ve made a substantial investment in those systems, and we continue to believe they’re going to help yield great results as we’re a public company.

Nunes: Better was a very efficient refi shop during the Covid years when rates were historically low. How can Better succeed in a purchase market? 

Garg: It took us six years to do $100 billion of refinances and to build an industry leader in refinances. Over the past two years, we’ve had to pivot very hard so that 90% of our business is purchase mortgages. To do purchase mortgages, we knew it was not enough to just be cheaper, because Better could save consumers money on their mortgage versus the MBA [Mortgage Bankers Association] average, but we had to be faster and easier to use.

We’ve done that through products like One Day Mortgage, which are helpful to a consumer if they’re buying or shopping for a home because literally the same day that they enter into a purchase contract, they can get a commitment letter on their mortgage. We believe that the innovation, which we launched earlier this year, has yet to really play itself out in the mortgage industry. As we get widespread adoption of One Day Mortgage, we will be able to grow our purchase volumes dramatically, [much] in the same way that we did our refinance volumes.

Nunes: But how is Better building relationships with real estate agents, financial planners, and other professionals, who can help you get more customers and win in the purchase market? 

Garg: The bulk of leads are actually generated from the internet. We’ve been able to consistently get that cost of acquisition down, such that the internet is now a viable source of customer acquisition for us. We’ve always been very good at direct customer acquisition and reaching consumers directly. We’ve always had the ability to get consumers from direct advertising. 

But more recently, we have partnered with Realtors. As you know, we took our in-house BRE [Better Real Estate LLC.] operation, deprecated it, and launched a partnership operation with Realtors. We’re partnering with Realtors, we’re helping Realtors win new business and get new business by referring Better’s customers who don’t have a Realtor to those realtors, and then also helping realtors understand the power of One Day Mortgage and how it can speed up the mortgage process.

Nunes: What is the rationale behind the change at Better Real Estate, pivoting from in-house licensed professionals to a partner agent model?

Garg: We had to shut down our in-house division, and with that came the associated layoffs. When we had agents, we were not large enough to provide the consumer full coverage [geographically]. Honestly, our in-house platform was not nearly as efficient as some of the best agents in the country. 

Our overall model has changed from being a one-stop-shop, where we do everything in-house, to being a one-stop-shop where we do the things in-house that we’re the best at. With One Day Mortgage, we are the best at delivering a fast response to a consumer along with an industry-leading price. 

For things like homeowner’s insurance, title insurance, and realtors, we’ve now just become a marketplace. We match the consumer with a partner capable of delivering the best product to them. So, we ended [Better Real Estate] for the sake of efficiency and savings for the consumer. We partner with best-in-class agents, insurance companies and title companies.

Publicly, we’ve gone from over 11,000 people to about 1,000 people. Along that journey, we have become much more efficient. 

Nunes: Better rolled out the “One Day Mortgage” in January. What is the share of clients getting a mortgage commitment letter within 24 hours? What are the challenges for the product?

Garg: I’ll be able to tell you that soon. All I can tell you is One Day Mortgage has been an amazing lever for our customers, and customer adoption has been off the charts.

The biggest challenge initially was reengineering the entire process of tasking out to the consumer, getting their income, getting their assets, and figuring out which of their debts they might be paying off. All of those things are processes built to begin in the old mortgage process to be weeks long because of the overall process of 60 days that it took to close a mortgage. 

Now, if you say to a consumer, ‘I’m going to give you a commitment letter in one day,’ all of those sequential processes have to be parallel processes. [So this] can’t be done by humans. The machine has to do all of them.

The other thing we have to do is use technology to predict which customers can qualify for  One Day Mortgage based on just the data that’s in their pre-approval. The first job is predicting which customers might be able to be qualified for this pathway, and the second step is then delivering the product within 24 hours.

Nunes: How has the company changed internally to offer One Day Mortgage?

Garg: We had to build an underwriting and processing operation that was 24/7, which is unheard of in the mortgage industry. We had to have the machine provide a lot of the steps —more of the steps than are traditionally done. Most mortgage companies use technology to collect data. We’re using technology to decide the data itself [that should be fed into it]. Our rules engine Tinman can]do all of that work of getting to a commitment letter and reduce the number of human touches involved. We have offices in New York, Charlotte, Irvine, and India.

Nunes: Last August, Better partnered with Palantir to create the proprietary loan platform you mentioned, Tinman Marketplace. What makes this technology competitive? 

Garg: The Tinman platform fundamentally differs from the traditional mortgage industry platform. The traditional mortgage industry platforms —like Encompass or Empower Pro — are more built around capturing data and storing data that humans extract. So, a human underwriter might extract from looking at someone’s paystub, what their income is, and then type that into Empower Pro or Encompass, and then use that along with other things to calculate the consumer debt-to-income ratio or other things.

Tinman interacts directly with the consumer; captures the data directly from the consumer; puts it into the calculation engine; figures out what their debt-to-income ratio is going to be; figures out which investors that the debt-to-income ratio is compatible with; routes it into those investor engines; and gets the appropriate pricing. If there’s anything that needs to change, it then automatically displays that to the consumer. So, it’s a very different process than a human entering and taking out data and then coming back to the consumer.

Nunes: How do you review the data customers are providing for accuracy?

Garg: We’ve built one of the largest training data sets in the industry. Anytime we have a rule change that we put into the system, we run it against all the loans that we’ve done previously to see if that rule was applied today, whether it would be consistent or not. This gives us a lot of comfort versus actual human underwriters. Our error rates are substantially lower than that of the rest of the industry as a result. I can’t disclose the error rates.   

Nunes: Does Better.com want to be more like an originator or a “white-label” platform, just like Blend?

Garg: Before the pandemic struck, we were on our way to doing that [white-label platform]. We had Ally Bank and American Express. With the pandemic, a lot of those efforts took a backseat. Now, you will see us leverage Tinman to be the mortgage platform of choice all the way to closing for a variety of banks. Now you hear a lot of the banks are getting out of the mortgage industry because it costs them too much to originate. We plan to offer the platform to many other financial institutions, mortgage lenders, and Realtors to use for mortgages as a service.

Nunes: How relevant will the white-label platform be compared to Better’s origination business?

Garg: If you think about a concept like Amazon, Amazon drives two-thirds of its sales from people who are leveraging the Amazon platform, third-party sellers, rather than running it through their own distribution warehouse. So, we aim for a similar mix.  

Nunes: What is your strategy with origination channels?

Garg: Right now, we have direct and partnerships, like Ally and Amex, large-scale private white-label partners. We have not done correspondent or TPO [third-party mortgage origination] yet. We are considering it. We have had conversations [with brokers], but I can’t give more details. If the consumer desires a local expert and wants to be handheld every step of the way locally, then a broker might make a better option than what we traditionally deliver today. So we’re thinking about that.

Nunes: What does the path to profitability look like?

Garg: First, we are in the worst mortgage market ever, in a very bad housing market, with a low housing supply. A lot of the issues that we are having today are a result of the macroeconomic environment. That being said, we have to continue improving our conversion rate, which will lower our customer acquisition cost and improve our efficiency,resulting in lower processing costs. 

Today, we are about 45 basis points cheaper than the industry average as of Q1. On a $400,000 mortgage, we’re about $1,800 a year cheaper. [We plan] to maintain price competitiveness. That means that we have less money to pay for all the things, and that requires us to be even more efficient in customer acquisition and the processes.

We always guaranteed to the consumer that we would either beat their rate or give them money. We’ve been involved in the price war. As many of the big players in the industry take a step back, that will improve profitability for everyone.

But I can’t say [when Better will be profitable]. 

Nunes: Would you consider M&A? 

Garg: To date, we’ve done three acquisitions, primarily in the U.K. We would be interested in acquisitions here in the U.S. that help us expand our footprint or the range of products that we offer to customers.

Nunes: When the layoff through Zoom happened in December 2020, the board ordered you to take a month-long break from your role, and you went through a mentoring process. Where are you and Better in the journey to recover from that episode? 

Garg:  Better is a much more mature company, and I’m a much more mature and empathetic leader than I was. I’ve gone through extensive coaching and professional development. With respect to where Better is, the consumers love Better, and we continue to have amazing customer experience scores, and customers come to our doors every day. While there was no other way that we could have done what we did with respect to the layoffs over Zoom, we believe that we’ve learned a lot from it. 

Nunes: Where is the mortgage market in the current cycle? Are we close to a market turn?

Garg: I don’t know when the next refi boom will happen. There was a story in Bloomberg about the economist of Goldman Sachs thinking that the first-rate cut is coming in June of 2024. But it’s completely unpredictable. We’ve never had an inflationary environment like what we’ve just had and coming out of it. 

Now that inflation is going down, we’ll see what happens — whether we have a hard or soft landing. What is going to be exciting for Better is that One Day Mortgage works well for purchase. One Day Mortgage works extraordinarily well for refinance. 

Nunes: What have you learned from the last refi boom?

Garg: We grew our headcount way too quickly. We underestimated how high the rate increases were going to be. This time, we’re going to do a much better job.

Source: housingwire.com

Apache is functioning normally

We’ve all been waiting for news on the Home Affordable Refinance Program (HARP) front, and a nugget has finally arrived.

Unfortunately, it’s a bit of a mixed bag, depending on who owns your mortgage, and whether the words of a Treasury representative will actually amount to anything.

During a speech at the ABS Vegas 2014 Conference today, the Counselor to the Secretary of the Treasury for Housing Finance Policy Dr. Michael Stegman shed some light on the agency’s stance regarding the future of HARP.

He noted early in his speech that nearly three million homeowners have already received assistance through the popular mortgage refinance program, and that another two million are still HARP-eligible.

Additionally, he explained that the Treasury doesn’t believe the HARP eligibility date should be changed.

The cutoff date is currently May 31, 2009, meaning borrowers who took out loans after that date are not eligible for a HARP refinance, even if they’re currently underwater.

[HARP 2.1 Is Here! Fannie and Freddie to Use Note Date for Eligibility]

Yes, even borrowers who took out loans as recently as four years ago are underwater, depending on the region in which they purchased.

However, Stegman said “very few homeowners” with loans originated after the cut-off date are actually underwater and making changes “would do more harm than good by prolonging market and investor uncertainties.”

In other words, they’re not going to tinker with the program just to help a handful of borrowers who purchased homes at the wrong time. After all, it’s a choice to buy a home and you don’t get purchase protection if your property value declines.

Back before the latest housing crisis, those who didn’t buy at the absolute bottom simply had to wait for home prices to bounce back up. They didn’t just turn to the government months later to get some kind of concession.

Hope for a Refinance Program for Private-Label Mortgages

And now for the good news. Stegman also voiced concern regarding the absence of a large-scale underwater refinance program for private-label mortgages, those not backed by Fannie Mae and Freddie Mac.

Stegman pointed out that some communities are simply taking matters into their own hands by turning to eminent domain. He argues that a better path might be refinancing legislation.

So as the Treasury works to reform the housing finance system, it “will seek to ensure that neither the source of one’s mortgage nor who owns the credit risk should determine a borrower’s eligibility for refinancing or mortgage assistance.”

In other words, there could be expanded eligibility for HARP in the near future if legislators get off their seats and make it happen.

Even if it doesn’t happen with HARP initially, future mortgage assistance programs could encompass all types of loans, not just those backed by the GSEs.

Mortgage Forgiveness Debt Relief Act Extension

He also emphasized how important it is to extend the Mortgage Forgiveness Debt Relief Act, which expired at the end of last year.

Since 2007, homeowners who received principal forgiveness via short sales, loan modifications, and deed-in-lieu of foreclosures didn’t have to pay taxes on the amount forgiven.

If Congress doesn’t act soon, borrowers could be on the hook for the shortfall. The uncertainty could also push homeowners to foreclose instead of pursuing more beneficial outcomes.

Stegman called on Congress to extend the tax forgiveness immediately to clear up any doubt, instead of passing a tax extender late in the year and making it retroactive.

So that’s the latest housing policy news. Some good news, some bad, and a whole lot of uncertainty, per usual.

Source: thetruthaboutmortgage.com

Apache is functioning normally

The Pilgrims landing at Plymouth Rock. The infamous Salem witch trials. The Boston Tea Party. New England fall foliage. Clam chowder. Harvard University. What do all these iconic places, things and events have in common? Massachusetts.

Living in this popular New England state, you’re living surrounded by the early history of the United States, from the first public library and the first Thanksgiving. You have access to world-class higher education at Massachusett’s many esteemed universities and colleges.

From fall foliage to breezy beaches, its landscapes capture that perfect mental picture of New England’s nature. It’s the home of Boston, one of the most popular cities on the East Coast. Also, you can’t beat the clam chowder and seafood.

Massachusetts also boasts a high median household income of $84,385. But, as one of the most desirable states to live in New England, the cost of living in Massachusetts often exceeds the national average. Boston, in particular, is very expensive. But other cities around the state are cheaper. Just because the cost of living is particularly high in one area doesn’t mean the entire state is unaffordable. The right place to live in Massachusetts depends on your budget and lifestyle. Here’s what you can expect in terms of the cost of living expenses around Massachusetts in 2022.

Massachusetts housing prices

Housing costs in Massachusetts are higher than the national average. This is true even of small cities located far from major metro areas. The average cost for an apartment or rental in small towns and cities around the state is higher than in other similarly-sized towns elsewhere. Rates are generally still manageable, though. Especially if you’re living in a small- or mid-sized college town, you won’t lack roommate options. But, in some cities, the cost of living in Montana for housing is scarily high.

This is what you can expect to pay for housing in two different Massachusetts cities. One is at the extreme western edge of the state, with a population of around 42,500. The closest big cities are Springfield and Albany, both roughly an hour away. The other city is at the complete opposite end of the state. It’s the most populous city in the state and a major, influential East Coast urban center.

Boston

You must really like baked beans and the Red Socks to put up with the cost of housing in Boston, which is 120.9 percent higher than the national average. This puts it up there among the most expensive places to live in the United States.

You can expect to pay around $3,887 for a one-bedroom apartment in the city. A two-bedroom apartment kicks things up significantly to $4,982. These prices are up 9 and 10 percent, respectively, from the previous year.

Home prices here exceed the statewide median sales price. Buying a home in Boston has a median sale price of $780,000, which is 3.6 percent higher than last year.

Pittsfield

Housing costs in the charming, peaceful city of Pittsfield in western Massachusetts are 12.5 percent higher than the national average. Prices are also on the rise. The average rent for a one-bedroom apartment is $1,250 per month, which is up 14 percent from last year. The cost for a two-bedroom has climbed even more. Jumping 57 percent from last year, the average two-bedroom apartment around town will set you back $1,450.

The cost of buying a home here is also rising. Up 37.2 percent from last year, the median sales price for a house around Pittsfield is $269,500. However, since the median home sale price around the state is $560,000, Pittsfield prices are a steal.

Food prices

People in Massachusetts love food. It’s no surprise why. Boston is a bonafide foodie destination thanks to its namesake baked beans and cream. The lengthy Massachusetts coastline serves up all kinds of fresh and delicious seafood like clams and lobsters.

Massachusetts is among the top five states for most expensive average grocery costs. Massachusetts residents shell out between $3,601 to $4,000 a year per person for food. So, consequently, the cost of living in Montana for food is higher than the national average.

Boston comes in first place for the highest food costs in the state. Pittsfield ranks a more reasonable amount above the national average:

  • Boston is 16 percent above the national average
  • Pittsfield is 7.3 percent above the national average

Doing a line-by-line comparison of food costs in the two cities reveals that most staple food items have fairly similar costs. Picking up a half-gallon of milk in Boston costs $2.76. Pittsfield is slightly cheaper at $2.52. A dozen eggs cost almost exactly the same at $2.22 in Boston and $2.23 in Pittsfield. Steak lovers will prefer Pittsfield over Boston when it comes to steak prices. You’ll be paying $17.92 for steak in the City on a Hill, but a more affordable $11.68 on Pittsfield.

Since Boston is such a big food town, expect to pay more for dining out, as well. Going out to a three-course meal at a nice restaurant for date night costs $82.50 compared to $69.50 in Pittsfield. You’ll pay the same for a casual meal out in both cities at $20.

Utility prices

Electricity, internet and water are the biggest slices of the utility pie. Massachusetts gets its energy and electricity from a mix of renewable and non-renewable energy sources. These include hydropower, coal and nuclear. Natural gas is the biggest supplier.

Utilities are the one area where Pittsfield or Boston dip below the national average for cost of living:

  • Pittsfield is 5.1 percent below the national average
  • Boston is 23.5 percent above the national average

Similar to its other cost of living categories, Boston residents pay more for utilities. Total energy costs for the month total around $250.47. But in Pittsfield, you’ll be paying around $161.38. But, in a twist, the internet is more expensive in Pittsfield than in Boston. Paying for 60 megabits per second in Pittsfield costs $104.33. But, in Boston, you’ll only pay around $62.40. That’s a difference of 67 percent.

Transportation prices

From buses to subway to ferry routes, there are tons of different ways to get around Massachusetts’ cities and towns. Not only does it save on gas, parking and other car-related expenses, but you can watch charming college towns or scenic bays glide by. Big cities like Boston have huge transit providers, and Massachusetts also has a robust regional transit system. Fifteen different agencies provide regional public transportation in smaller cities and towns around the state.

However, the cost of living in Massachusetts for transportation in all these cities is higher than the national average. So, while you save money on your car, you’ll be pay more for transportation than the average American:

  • Boston is 21.1 percent above the national average
  • Pittsfield is 23.2 percent above the national average

The cost of transportation in Pittsfield and Boston is pretty close. But Pittsfield beats Boston slightly for transportation prices. Here’s what you can expect to pay to ride local transit in these two cities.

Berkshire Regional Transit Authority in Pittsfield

This bus-only agency provides public transportation to the residents of Pittsfield and surrounding Greater Berkshire County. It operates 14 fixed bus routes, as well as paratransit services.

A single ride within the local network costs $1.75 if you pay in cash. Paying with a Charlie Card knocks off 20 cents, bringing it down to $1.55. A 30-day pass costs $52. For systemwide access, fares start at $4 with the Charlie Card and a 30-day pass is $140.

Public transportation around Pittsfield has a low transit score of 30. If you don’t want to take the bus or your car, there are other ways to get around town. As a safe, close-knit community, it’s easy to navigate town on foot. This is especially true of the downtown area and family-friendly neighborhoods. Pittsfield scores a high 70 for walking. But, it’s not so bike-friendly, ranking only 48 on the bike score.

Massachusetts Bay Transportation Authority in Boston

Boston gets its public transportation from the MBTA. Locals call it the “T”. Their fleet and services consist of bus routes, subway, rail and water ferry routes. Their service extends beyond the city of Boston to the Greater Boston metro area. It has 177 bus lines, three ferry routes and four subway lines accessing 128 stops.

MBTA fares vary depending on what type of service you’re using. A one-way adult ticket on the subway costs $2.40 with cash or Charlie Card. A single bus fare is $1.70. For the commuter rail and ferry, fares encompass a range based on the route or distance traveled. A one-way ferry ride costs between $3.70 and $9.75. On the commuter rail, you pay between $2.40 and $13.25 depending on how far you travel.

Passes similarly vary. A subway and bus day pass is $12.75. A monthly LinkPass for the two costs $90 with unlimited travel. Commuter rail monthly passes are as low as $90 and as high as $426. You’ll pay between $90 and $329 for a monthly ferry pass. Since monthly parking passes around Boston average $300, you need to decide for yourself if using public transit offers enough savings or convenience. If you choose to drive, you’ll have to pay tolls on the Massachusetts Turnpike. Toll rates depend on the length of time you’re using the toll road to use one of the harbor tunnels or go out to Logan Airport. Rates start at around $1.75 for two-axle vehicles.

With such diverse public transportation options, it’s no surprise Boston has a high transit score of 80. Its dense urban center and vibrant neighborhoods are why Boston also has very high walk and bike scores. This ultra-pedestrian-friendly city boasts a stellar 89 walk score and 77 bike score.

Healthcare prices

Similar to many other costs of living categories, the cost of living for healthcare around Massachusetts is higher than the national average. But that number is extremely subjective. Health, and therefore, healthcare costs can vary widely by person, even within the same city. Some people have to pay more for prescriptions, higher insurance premiums, out-of-pocket costs for check-ups and more. This is why it’s so difficult to find the average healthcare cost of an area and you should take any statistics or figures with a grain of salt. Here’s how these two Massachusetts cities stack up to the national average:

  • Pittsfield is 15.1 percent above the national average
  • Boston is 17 percent above the national average

That being said, Massachusetts has it pretty good healthcare-wise. The state is consistently ranked as being one of the healthiest nationwide, as well as having the best healthcare. It’s home to renowned hospitals like the Boston Children’s Hospital and Massachusetts General Hospital. Since Massachusetts is famous for its top universities, it also has many top-tier medical schools and leading research facilities. With universities around the state producing world-class doctors, nurses and healthcare professionals, naturally state hospitals staff the best.

Even for such a healthy state, it’s important to still go to see your doctors at least once a year. Out-of-pocket costs for a doctor visit cost roughly the same in both cities at $182.50 in Boston and $185 in Pittsfield. Going to the dentist in Boston is slightly pricier at $131.50 compared to Pittsfield’s $117. Even with higher costs above the national average, you’re still paying for the best in healthcare.

Goods and services prices

Spilled some baked beans on your shirt and need to take it to the dry cleaners? Going to get your hair cut before a sunny afternoon out in Pittsfield? These various services and items fall under the category of miscellaneous goods and services. While these may seem like small expenditures, they can add up fast. This is especially true in big cities like Boston. That’s why you need to consider how expensive these items and services are in a particular state. The average cost of living for goods and services in Massachusetts cities is above the national average:

  • Pittsfield is 8.2 percent above the national average
  • Boston is 19.9 percent above the national average

Just because one city has the highest overall rates doesn’t mean all services are more expensive. For that dry-cleaning run, you’ll actually be paying more in Pittsfield. It costs $23 to go to the dry cleaners there, but $16 in Boston. In Boston, it’s better to let your hair grow longer than pay $43.33 for a cut. Or, drive over to Pittsfield and get it done for half at $23.

Taxes in Massachusetts

Since you’ll also be paying taxes on those goods, services, food and other essentials, it’s important to know how much is going to tax. Massachusetts has a statewide sales tax rate of 6.25 percent. To put that into perspective, when you spend $1,000 on Red Sox tickets, you’ll pay an extra $62.50 for taxes.

But that’s all you’ll be paying in tax. Massachusetts doesn’t have any city or county sales taxes to add to the statewide rate. That means that:

  • Pittsfield has a combined tax rate of 6.25 percent
  • Boston has a combined tax rate of 6.25 percent

The other tax you need to consider is the income tax. A certain amount will come out of each paycheck, which impacts your monthly budget. In Massachusetts, income tax is a flat 5 percent. Massachusetts used to have high enough taxes that it earned the nickname Taxachusetts. But, they’ve cut taxes significantly to bring the rate down.

How much do I need to earn to live in Massachusetts?

Now the crucial question: Is life in Massachusetts within your means? Experts recommend not spending more than 30 percent of your gross monthly income on rent. The cost of living for housing in Massachusetts is generally the biggest slice of the monthly budget pie. You need enough left over for groceries, savings and other essentials and incidentals.

Considering the 30 percent rule, you’d need to make around $104,592 a year to afford Massachusetts’ average rental rate of $2,615 for a one-bedroom apartment. That comes out to roughly $8,719 per month in income. Since the median household income in the state is $84,385, showing that housing is priced out of the average person’s reach.

Cities like Boston are already getting prohibitively expensive. But, you may have more luck in smaller cities and towns.

Use our rent calculator to see if you can live comfortably in Massachusetts based on factors like monthly pre-tax income and expenses.

Living in Massachusetts

Massachusetts is not the cheapest state, and the cost of living is going up in many areas. Housing, in particular, is being hit hard. But living here has plenty of other benefits like fun cities, great access to the outdoors and all those great Boston foods. If you can comfortably afford the rising cost of living in Massachusetts, you, too can spend summers out on Cape Cod and study at world-class universities.

The Cost of Living Index comes from coli.org.
The rent information included in this summary is based on a calculation of multifamily rental property inventory on Rent. as of July 2022.
Rent prices are for illustrative purposes only. This information does not constitute a pricing guarantee or financial advice related to the rental market.

Source: rent.com