Fitness trackers do their job so well that they might be a threat to national security.
Last week, a report broke that the journeys made by people with some fitness trackers could be searched by anyone online. These heat maps were tracked and released by Strava, with the intention of showing runners and bikers some of the most popular routes and paths used by others.
However, people wearing their tech while doing day-to-day activities were also mapped, and many of these people were active military members.
By looking at the heat maps online, anyone could see who was walking where, including while inside military bases. Plenty of heat maps are available for the US and Europe, two areas with a large US military presence. But there was also information online showing the routes of some military personnel in Afghanistan.
This information can be used by anyone who wanted to ambush any of these US military bases or personnel. By knowing the daily habits and routines of military members, they could easily plan a coordinated attack.
Fortunately, the heat map released by Strava isn’t live, so it can’t be used in real-time – but it does show all info from September 2015-2017, meaning two years’ worth of information could be used to determine present habits and patterns.
Check today’s VA rates.
Does Technology Threaten Security?
In response to the realization of Strava’s impact on the military, the Pentagon has started a broad review of exercise trackers. There are even reports that the Pentagon is considering banning cell phones in the entire complex to protect information.
Strava’s heat maps were released with no ill-intention, only to serve people who want to see popular routes for exercise. But the amount of information collected and released begs the question – does technology threaten national security?
For now, perhaps the best approach is to remain vigilant. The US military caught on to the potential dangers of heat maps before news broke, meaning they found the potential problem before the general public realized what could be done with the information. But there’s no telling what can be done with the existing heat maps that made it online.
Information is more widely accessible now than it ever has been, and technology is still picking up its pace. Be aware of any threats to your private information any type of technology can have – even if the company of the technology isn’t aware of the potential damage they could do.
Executives from two major AI companies asked senators on Tuesday to pass regulations for the ground-breaking but nascent technology as rapid innovation raises ethical, legal and national security questions.
Speaking to a Senate Judiciary subcommittee, OpenAI CEO Sam Altman praised the potential of the new technology, which he said could solve humanity’s biggest problems. But he also warned that artificial intelligence is powerful enough to change society in unpredictable ways, and “regulatory intervention by governments will be critical to mitigate the risks.”
“My worst fear is that we, the technology industry, cause significant harm to the world,” Altman said. “If this technology goes wrong, it can go quite wrong.”
Read more: How advisers can embrace AI tools without sacrificing human connection
IBM’s chief privacy and trust officer Christina Montgomery focused on a risk-based approach and called for “precision regulation” on how AI tools are used, rather than how they’re developed.
It’s unclear whether Congress is up to the task. Political gridlock and heavy lobbying from big technology firms have complicated efforts in Washington to set basic guardrails for challenges including data security and child protections for social media. And as senators pointed out in their questions, the deliberative process of Congress often lags far behind the pace of new tech advancements.
Demonstrating AI’s power to deceive, Senator Richard Blumenthal, the Connecticut Democrat who chairs the panel, played an AI-written and produced recording that sounded exactly like him during his opening statement. While he urged AI innovators to work with regulators on new restrictions, he recognized that Congress hasn’t passed adequate protections for existing technology.
“Congress has a choice now. We had the same choice when we faced social media,” Blumenthal said. “Congress failed to meet the moment on social media. Now we have the obligation to do it on AI before the threats and the risks become real.”
Read more: Is your manager trying to replace you with AI?
As Tuesday’s hearing got underway, senators questioned the potential for dangerous disinformation and the biases inherent in models trained on internet content. They raised the risks that AI-fabricated content poses for the democratic process, while also fretting that global adversaries like China could surpass US capabilities.
Blumenthal asked about “hallucinations” when AI technology gets information wrong. Tennessee Republican Marsha Blackburn asked about protections for singers and songwriters in her home state, drawing a pledge from Altman to work with artists on rights and compensation.
Missouri Senator Josh Hawley, the ranking Republican on the subcommittee, asked whether AI will serve to be as transformative as the printing press, disseminating knowledge more widely, or as destructive as the atomic bomb.
“To a certain extent, it’s up to us here and to us as the American people to write the answer,” Hawley said. “What kind of technology will this be? How will we use it to better our lives?”
Much of the initial discussion focused on generative AI, which can produce images, audio and text that seems human-crafted. OpenAI has driven many of these developments by introducing products like ChatGPT, which can converse or produce human-like, but not always accurate, blocks of text, as well as DALL-E, which can produce fantastical or eerily realistic images from simple text prompts.
But there are boundless other ways that machine learning is being deployed across the modern economy. Recommendation algorithms on social media rely on AI, as do programs that analyze large data sets or weather patterns.
Read more: No more ChatGPT? Here’s what the ‘pause’ on generative AI means for the workplace
Required Registration
The Biden administration has put forth several non-binding guidelines for artificial intelligence. The National Institute of Standards and Technology in January released a voluntary risk management framework to manage the most high-stakes applications of AI. The White House earlier this year published an “AI Bill of Rights” to help consumers navigate the new technology.
Federal Trade Commission Chair Lina Khan pledged to use existing law to guard against abuses enabled by AI technology. The Department of Homeland Security last month created a task force to study how AI can be used to secure supply chains and combat drug trafficking.
In Tuesday’s hearing, Altman focused his initial policy recommendations on required registration for AI models of a certain sophistication. He said companies should be required to get a license to operate and conduct a series of tests before releasing new AI models.
Montgomery said policymakers should require AI products to be transparent about when users are interacting with a machine. She also touted IBM’s AI ethics board, which provides internal guardrails that Congress has yet to set.
“It’s often said that innovation moves too fast for government to keep up,” Montgomery said. “But while AI may be having its moment, the moment for government to play its proper role has not passed us by.”
While it may be blessing for rates to be flatter and more predictable lately, the fact that the sideways range is close to long-term highs feels more like a curse. More banks may be at risk of failing and some economic data may suggest recessionary cracks, but inflation and labor market data have yet to shift in a way that conclusively implies the next big trend should be toward lower rates. Until that stalemate is resolved, bonds will be hard pressed to be anywhere else but in the same old sideways grind.
Apart from the year-end drift in December and the false start created by strong econ data in February, bonds have spent almost all of their time in the same range for 6 months now.
Since late March, there have been 3-4 halfhearted attempts to break the range. The two most recent examples have been progressively less forceful. This only reiterates the gravity of the range and the clear undertones of consolidation. The telltale “higher lows and lower highs” are very easy to see in the mortgage rate world.
For rates to be holding a sideways trend that’s roughly .75% below 2022’s highs is quite impressive. Treasuries can scarcely make the same claim and MBS arguably have more headwinds. Among those, the most obvious is the extra glut of unexpected supply via the FDIC’s liquidation of failed bank assets.
This week’s biggest data headline is probably Tuesday’s Retail Sales, expected at 0.7 vs -0.6 previously. There’s probably not a result that’s worth challenging the range, but it can inform volatility inside the existing boundaries.
SoFi is a nationally chartered, online-only bank that offers customers a high 4.20% on savings, an interest-earning checking account, and a host of other benefits for being a member. The bank currently has more than 5.5 million customers, which it calls members, and has an extensive rewards system in place to help your money go further and grow faster.
Find out why SoFi is a top-rated bank, as well as one of the fastest growing financial technology companies offering loans, an investment platform, and a rewards credit card.
SoFi at a Glance
SoFi became a nationally chartered online bank in early 2022, following the fintech’s acquisition of Golden Pacific Bancorp. SoFi started as a company that provided student loan refinancing, and evolved to provide personal loans and other services.
Its status as a national bank enables the fintech to help even more people. “This incredible milestone elevates our ability to help even more people get their money right and realize their ambitions,” said SoFi CEO Anthony Noto in a press release following the acquisition.
SoFi Products
Today, the online bank offers a variety of products to help American consumers meet their financial goals. The parent company, SoFi Technologies, is the parent company of SoFi Bank, Member FDIC. Products and services include:
SoFi checking and savings
SoFi personal loans
Credit card
Student loans and student loan refinancing
Mortgages
Investment and Retirement Products
Find out how these products compare to competitors in the industry in our SoFi reviews below.
SoFi Checking and Savings Account
SoFi offers a combined checking and savings account to customers. You cannot open one without the other, but this provides tremendous benefits and an incentive to save. Currently, when you open a SoFi checking and savings account, you can earn up to $250 when you set up direct deposit within the first month.
That’s in addition to all the other perks, including an account with no monthly maintenance fees, no overdraft fees (for qualifying customers), and no minimum balance requirement. Plus, deposits are FDIC-insured up to $2 million through SoFi’s network of partner banks, which exceeds the federal limit of $250,000 per account holder, per account type.
SoFi Checking
Your SoFi checking account comes with a cash back debit card that pays up to 15% cash back on debit card purchases when you shop at local businesses. Your SoFi debit card also offers fee-free access to more than 55,000 AllPoint ATMs for cash withdrawals, cash deposits, and balance transfers. You can also check account balances at any ATM with no fees.
Your SoFi checking account also has many other benefits you may not find in a traditional bank account. You can get paid two days early with early direct deposit. Plus, your SoFi checking account earns interest at a rate of 1.20% APY.
If you enable overdraft protection, SoFi will pull from your savings account to cover checks, debit card purchases, and ACH withdrawals, including online bill payments, loans, and P2P payments. It will not pull from savings you have designated in vaults for specific purposes.
SoFi Savings Account
Your SoFi checking account offers a 4.20% APY, which is one of the highest available for online savings accounts. Be aware that to earn this high rate, you’ll need a qualifying direct deposit of any amount each month. Otherwise, you’ll earn 1.20% on all account balances.
The savings account also helps with cash management by offering automatic savings features and savings vaults. You can designate a specific amount of each ACH direct deposit or cash deposit to go directly into your SoFi savings account or into a specific savings vault. Unlike many traditional banks, there is no limit on savings withdrawals or transfers.
SoFi Pros and Cons
Your SoFi bank account has a number of desirable features that make it one of the best online savings and checking accounts for many people.
Pros
High 4.20% APY on savings
1.20% APY on checking account balances
Early direct deposit
No ATM fees
No bank fees
Overdraft protection for qualifying customers
Cons
No CDs
No money market accounts
No branches for in-person service
SoFi Membership Features and Additional Perks
SoFi members who open a fee-free combined checking and savings account also qualify for other benefits. There is no minimum opening balance or minimum balance requirements to be considered a SoFi member.
Some of the membership benefits include:
15% off estate planning
Free access to career coaching
Free financial planning services
Member events that can help with money management
SoFi Member Rewards
A few of the SoFi member benefits stand out, including the SoFi Member Rewards program. To join, download the SoFi app. You will earn points when you take actions like:
Using your debit card
Checking your credit store
Saving money
Investing
As you earn points, you can convert those points to cash deposited into your SoFi bank account. You can then redeem points to help may loan payments, convert points into fractional stock shares through SoFi Active Invest, or even cash in points for a statement credit.
SoFi Referral Program
SoFi’s Rewards don’t stop with actions you take within your account. If you share SoFi with friends using your unique link, you’ll earn additional points you can cash in.
Currently, SoFi offers 2,000 rewards points for every person you refer who opens a SoFi checking and savings account with at least $10. You will also earn 2,000 points for friends who open a credit card, SoFi Credit Score Monitoring Account, or fund a Lending Product within 90 days of registering for SoFi using your link. Your friend will also earn 2,000 points.
Note that you can only earn points for one account per friend, so your friend may open a bank account and a credit card, but you will each only earn 2,000 points.
SoFi Stadium Perks
You might not think of SoFi as a travel or entertainment rewards card, but SoFi’s Stadium Perks program does provide unique benefits for Los Angeles residents and tourists. SoFi members earn 25% cash back on purchases at SoFi Stadium, home of the Los Angeles Rams and Los Angeles Chargers, when you use your debit or credit card.
Plus, gain access to the exclusive SoFi Member Lounge and fast and easy entry to the stadium through the SoFi Member Express Entry line. If you need to check your bag, SoFi will reimburse the fees to your checking account or credit card.
SoFi Plus: Premium Membership
SoFi Premium members earn even more perks. Unlike many premier programs, SoFi Plus does not require an additional monthly purchase or subscription fee. To qualify, just set up direct deposit with your checking and savings account. When your first direct deposit clears, you’ll gain access to all the premium benefits.
Qualifying direct deposits for SoFi Plus must reach $1,000 per month or more to gain access to all the features of SoFi Plus. This includes no-fee overdraft coverage and rate discounts on SoFi loans. Other features, including the 4.20% APY, 2X rewards points, and preferred access to IPOs through SoFi Invest, apply to all SoFi Plus members.
How to Open a SoFi Account
Opening an account online is easy. You’ll need to provide some information, including your address and Social Security number. You must be a U.S. citizen or permanent resident to qualify.
There is no minimum opening deposit, but you’ll want to fund your account to take advantage of high interest rates and access all the benefits. You can deposit cash or checks to fund your account for the first time through:
ACH direct deposit
Mobile check deposit
a GreenDot debit card
Instant Funding
To take advantage of Instant Funding, link your existing Visa or Mastercard debit card to your SoFi account. Click “Transfer Instantly” and you can transfer up to $500 into your account in minutes. To use this method, you must be a new SoFi customer and deposit a minimum of $50.
SoFi Credit Card
The SoFi credit card lets you maximize the points you can earn. The card delivers 2% cash back rewards on every purchase and has no annual fees. To qualify, you’ll need a “good” or “excellent” credit score.
The card has a standard variable Annual Percentage Rate (APR) of between 17.74% up to 29.74% based on your credit score and financial history. Cash advances carry an APR of 31.74%.
The card carries fees comparable to other top-tier rewards cards, including a late payment/returned payment fee of up to $39, and balance transfer or cash advance fees of $10 or 5% of the transaction amount, whichever is greater.
You can redeem your cash back as a statement credit, cash back into your checking or savings account, or as a deposit for investing through SoFi Invest.
SoFi Investing
SoFi is not just an online bank, but a full-fledged financial services firm that includes planning, management, and investing. The online stock trading app provides automated investing or hands-on options. You can trade:
Stocks
ETFs
Fractional stocks
Crypto
IPOs (for qualified SoFi Plus members only)
SoFi Investing at a Glance
SoFi offers active investing for stocks, ETFs and even IPOs. You can start investing in some of the highest market cap companies on the S&P 500 and other stock indexes with as a little as $5. SoFi does not charge commissions on trades. When you open an Active Investing account with at least $10, you could win a bonus of stocks valued at up to $1,000 by playing the “Claw Game” promotion.
If you prefer not to engage in active investing, you can set up an automated investing account with as little as $1. Invest a set amount one time or set up automated recurring payments to watch your investments grow.
You will need to answer some questions so that SoFi can determine your risk tolerance and choose the right portfolio for you. SoFi automatically rebalances your investments quarterly and keeps your portfolio diversified based on your goals and risk tolerance.
SoFi also gives investors access to Bitcoin, Ethereum, Cardano, Dogecoin, Solana, and 25 other popular cryptocurrencies. When you make your first crypto trade with a $10 minimum, you will earn a $100 bonus in Bitcoin within seven days. SoFi charges a mark-up of 1.25% on all crypto transactions.
SoFi Retirement Accounts
In addition to active and passive investment services through stocks, bonds, and ETFs, SoFi’s investments include Roth, SEP, and Traditional IRAs for retirement. You can choose active or automated investing. SoFi financial planners can help you create a retirement strategy that will work for you.
SoFi Investing Pros and Cons
As with all investment platforms, SoFi: Invest has many benefits and a few drawbacks.
SoFi Invest Pros
Active or automated investing
Investments in crypto, stocks, ETFs
Fractional shares permitted
Options investing
Intuitive app
SoFi Invest Cons
Options investing may require advanced knowledge
Not every investment will earn money
Odds of winning a $1,000 stock bonus are slim
SoFi Student Loans
Unlike many online banks, SoFi offers student loan refinancing with fixed interest rates as low as 4.99%. To qualify for the lowest interest rate, you will need to set up autopay for your loan payments.
SoFi can help you pay down your student loans faster with fixed APRs of 4.99% up to 9.99% or variable APRs of 5.74% to 9.99% APR. You may qualify for a SoFi student loan if you are gainfully employed, starting a job within 90 days of your loan application, or have sufficient income from various sources. You should also show a solid financial history and monthly cash flow indicating you can make the SoFi loan payments.
SoFi Mortgages
SoFi offers a broad range of mortgage products, including:
Conventional mortgages
Jumbo loans
Home equity loans
Cash-out refis
Short-term bridge financing for investment properties
With interest rates rising, SoFi’s “Lock and Look” feature lets you lock in today’s rates for up to 90 days while you shop for your dream home. Checking for your rate won’t affect your credit score.
First-time homebuyer loans may require as little as 3% down, while other home mortgages require just 5% down. Mortgages with a loan-to-value ratio greater than 80% will require private mortgage insurance.
SoFi offers conventional, fixed-rate mortgages with terms ranging from 10 to 30 years. If you take out a 30-year mortgage, you may qualify for a 0.25% pricing special or interest rate discount. To qualify for the lowest rates, you’ll want to have a strong credit history, an excellent credit score, and a low debt to income ratio.
SoFi Personal Loans at a Glance
SoFi may offer one of the top-rated online checking accounts today. But SoFi was founded as an online loan company in 2011, providing personal loans with no fees and loan amounts from $5,000 to $100,000. You can check your rates quickly with no impact to your credit score.
SoFi Personal Loans Review: Members-only Perks and Competitive Rates
A SoFi personal loan offers low fixed rates based on your credit history. Repayment terms range from two to seven years, while loan amounts run from $5,000 up to $100,000. SoFi borrowers pay no origination fee. You won’t suffer a prepayment penalty if you want to pay off your loan early. You can receive loan funds as quickly as the same day you apply.
SoFi personal loan interest rates range start at 8.99% according to the SoFi website. Secure the lowest rates with automatic payments directly from your SoFi account. SoFi Plus borrowers with qualifying monthly direct deposits may receive a rate discount as well. The higher your credit score, the lower your interest rate.
SoFi offers unemployment protection for borrowers, which can help with cash flow if you lose your job. You can modify your SoFi personal loan payments while you look for a new job. SoFi’s career coaching can even help you find new work.
Best for Fee-Free Debt Consolidation Loans
As one of the top online lenders today, SoFi can help you save money by consolidating high interest credit card debt into one, low, monthly loan payment. SoFi personal loans have no origination fee. Credit card consolidation can help you get out of debt faster and make it easier to pay your bills with one monthly payment directly from your account.
If you are planning to consolidate credit card debt through a SoFi personal loan, you can choose Direct Pay. Loan proceeds will go to your credit card companies directly, saving you time and hassle. You’ll also earn an interest rate discount with Direct Pay, making SoFi a great choice for credit card debit consolidation.
SoFi Personal Loans: Pros and Cons
SoFi personal loans have a number of benefits compared to other online lenders. Let’s look at the pros and cons of your SoFi personal loan.
Pros
No origination fees
Unemployment protection
Receive funds the same day you are approved
No prepayment fees
Loan amounts up to $100,000
Cons
Must be a U.S. citizen-permanent resident
Risk of charging up credit cards again after debt consolidation loan
Excellent credit scores required to qualify for the lowest rates
Hard credit pull to obtain a loan may reduce your credit score temporarily
What You Can Use SoFi Loans For
You can use SoFi loan money for virtually anything, including home improvements, credit card debt consolidation, family planning and IVF, or even luxuries like weddings and travel. With competitive rates, easy automatic payments, and unemployment protection, a SoFi personal loan might make sense to pay for one-time events where you might normally use a credit card.
How to Apply for a SoFi Personal Loan
Applying for a personal loan is easy. You may want to check your credit report first to ensure that all the information is accurate. A solid financial history can help you secure the best loan rates and highest loan amounts.
You will first want to open your SoFi bank account and set up direct deposit as well. SoFi Plus members can get interest rate discounts and even earn reward points for their loan. Once you are ready, visit SoFi.com, select personal loans from the drop-down menu of products, and click “View your rate.”
You’ll need to submit some information, including your name, address, Social Security number, loan amount, and income.
Bottom Line
SoFi Money encompasses all the banking, lending and investing services SoFi bank offers. SoFi ranks as one of the top online financial service companies, with excellent customer service and a wide range of products.
You can reach SoFi customer service via email, using the online virtual assistant chatbot, or by phone. Hours vary depending on the service you need. A wide range of financial products, low rates, and FDIC insurance up to $2 million for deposits set SoFi apart from competitors.
The Federal Reserve (Fed) on Wednesday raised the federal funds rate by another 75 basis points, to 3%-3.25%, bringing it back to a level last seen in March 2008.
The decision was expected by most Fed observers, and comes as mortgage lenders and real estate brokerages struggle to adjust to a Fed-driven slowdown of the housing market.
According to the Federal Open Market Committee (FOMC) statement, although recent indicators point to modest growth in spending and production, job gains have been robust in recent months and the unemployment rate has remained low.
“Inflation remains elevated, reflecting supply and demand imbalances related to the pandemic, higher food and energy prices, and broader price pressures,” the FOMC said in the Wednesday statement. “Russia’s war against Ukraine is causing tremendous human and economic hardship. The war and related events are creating additional upward pressure on inflation and are weighing on global economic activity.”
The committee anticipates that ongoing increases in the target range will be appropriate, meaning another 125 basis points in hikes still to come in 2022, with a federal funds rate topping out well above 4%. The FOMC’s Summary of Economic Projections now shows a funds rate midpoint of 4.375% at end-2022 and 4.625% at end-2023.
“No changes were made with respect to their ongoing plans to reduce the size of their balance sheet,” said Mike Fratantoni, the chief economist of the Mortgage Bankers Association. “Rate volatility is high due to both uncertainty regarding the Fed’s next moves and the lack of a steady, consistent buyer for Treasuries, and particularly mortgage-backed securities.”
How will non-QM perform for the rest of 2022?
With inflation and rising rates, non-QM lending has spent the last few months in choppy waters, with some lenders closing their doors. However, the outlook for non-QM for the rest of 2022 is relatively optimistic, according to Acra Lending CEO Keith Lind.
Presented by: Acra Lending
Since the Fed has started a tightening monetary policy to slow inflation, it has resulted in a cumulative 300 bps hike: 25 bps in March, 50 bps in May and three 75 bps increases in June, July and September.
Inflationary pressures resulted from the decision to maintain rates at 0%-0.25% between March 2020 and March 2022 to stimulate economic activity during the COVID-19 pandemic, marking a period of easy money that gave rise to the hottest mortgage market in U.S. history.
Consequently, inflation in the U.S. hit 8.3% in August, down from 8.5% in July but still higher than the 8.1% expected by observers, the Bureau of Labor Statistics reported on Sept. 13. One of the primary drivers has been housing costs, with shelter costs accounting for about 25% of inflation in August. Shelter costs rose 6.2% in August from a year before, and were up from 5.7% in July.
That inflation came in hot raised the specter that the Fed would increase the benchmark rate by 75 or even 100 bps today.
In the housing market, the tightening monetary policy has brought mortgage rates to the mid-6% level and helped bring rents to record prices, according to firms that track the rental market.
Existing-home sales declined in August for the seventh consecutive month and home prices dropped sequentially from July, evidence that the Fed’s policies have cooled the housing market in recent months.
According to the Fed’s latest Beige Book report, home sales fell across all 12 Feddistricts and the prospects for future improvement anytime soon are dim as well. “The outlook for future economic growth remained generally weak, with … expectations for further softening of demand over the next six to 12 months,” the report states.
“We’ve had a time of a red-hot housing market all over the country – famously, houses were selling to the first buyers by 10% above the asked, before they even see the house. So, it was a big imbalance between supply and demand and house prices were going up at an unsustainable fast level,” Fed Chairman Jerome Powell said during a press conference. “Builders are having a hard time to find lots, workers and materials.”
But Powell said the deceleration in prices should bring the market closer to its fundamentals, which is a good thing, according to him. “For the longer term, what we need is supply and demand to get better aligned, so house prices go up at a more reasonable pace and people can afford houses. Probably, the housing market needs to go to a correction to get to that place.”
Rate hikes also impact real estate investors. “Debt is becoming very expensive very quickly,” said Veena Jetti, founder of the Dallas-based real estate investment firm Vive Funds. “We will likely see operators that bought in the last few years without interest rate insurance finding it tough to service the debt.”
Whether the latest rate hike has already been ‘baked in’ to mortgage rates remains to be seen. “It’s possible that expectations of a rate hike are already priced into the market, as we just saw mortgage rates hit 6% last week,” said Steve Reich, chief operations officer at Finance of America Mortgage. “Interest rates hitting their highest levels since 2008 coupled with persistent inflation means some homebuyers may take a step back from the market and wait until rates come down. However, there are still opportunities in today’s market for potential homebuyers.”
Today we’ll check out “Filo Mortgage,” a newish mortgage company that says it specializes in amazingly low interest rates, world class service, and industry-leading technology.
Those are basically the three big things most borrowers are looking for in a mortgage lender, and if they can deliver on those promises, they could be a good option for both a new home buyer or an existing homeowner looking to refinance.
They also back up their pricing with a Low-Rate Guarantee and say they can close loans super-fast, often in just a few week’s time.
It all sounds pretty good so let’s take a moment to learn more about them.
Filo Mortgage Fast Facts
Direct-to-consumer mortgage lender that offers home purchase and refinance loans
Founded in 2019, headquartered in Fort Washington, PA
Currently licensed to do business in 22 states
Say they don’t charge lender fees ever
Aim to close most loans in as little as 3 weeks
Offers a $1,000 Low-Rate Guarantee
Filo Mortgage is a direct-to-consumer mortgage lender that offers home purchase loans and refinance loans.
The company only got its start back in 2019, so they’re relatively young but looking to grow quickly, with some 70+ loan originators already employed.
They essentially operate a call center and operations center, meaning borrowers will work remotely to get their loan closed, as opposed to visiting a physical branch location.
At the moment, they’re licensed in 22 states, including Alabama, Arizona, California, Connecticut, Colorado, Florida, Illinois, Georgia, Louisiana, Maryland, Michigan, Minnesota, Missouri, North Carolina, New Jersey, Oregon, Pennsylvania, Tennessee, Texas, Utah, Virginia, and Washington.
The company is big on transparency, and to that end says its loans never have any points or lender fees, ever!
Their staff is also available 7 days a week, 365 days a year to ensure they offer a first-class experience and quick loan closings, often in just three weeks.
As for their name’s meaning, my guess is it’s a combination of the words finance and low, not the delicious dough used to make pastries.
How to Apply with Filo Mortgage
Fill out a rate quote request form on their website or call them directly
If you like what you hear, you can apply over the phone or online in just minutes via a digital application
Borrowers are able to eSign disclosures and upload necessary paperwork to generate a conditional approval
They offer one intuitive place to manage and upload all your mortgage information
To begin, you can either call them directly or fill out a short rate quote request on their website.
They also offer the ability to schedule a call at a time that is convenient for you.
At that point a representative, presumably a loan officer, will help you decide on a loan program, discuss interest rates, and determine eligibility.
If you like what you hear, you can proceed to fill out their digital loan application, which apparently only takes seven minutes to complete on average.
Most tasks can be performed electronically, whether it’s linking your bank account or employment information, eSigning disclosures, or uploading paperwork.
It then only takes one day to get a loan commitment from Filo Mortgage, and perhaps better yet, the average number of days to close a loan is just 22.
And you’ll be able to track the entire loan process via their online borrower portal to ensure you never miss a thing.
Filo says it leverages user-friendly technology to keep their expenses low and make the entire process easy.
Loan Programs Offered by Filo Mortgage
Home purchase loans
Refinance loans: rate and term and cash out
Conforming loans
FHA Loans
VA loans
Fixed-rate mortgages: loan terms from 10 to 30 years available
Adjustable-rate mortgages: 5, 7, and 10/1 ARMs available
Filo Mortgage offers home purchase financing to buyers and mortgage refinancing to existing homeowners, including cash out refinances.
You can get a conventional loan backed by Fannie Mae or Freddie Mac, or a government-backed loan like a FHA loan or VA loan.
They don’t appear to offer USDA loans, and it’s unclear if jumbo loans are available.
But they lend on all residential properties from 1-4 units, including single-family homes, townhomes/condos, investment properties, and PUDs.
You can get either a fixed-rate mortgage from a 10-year fixed to a 30-year fixed, or an adjustable-rate mortgage, including a 5/1, 7/1, or 10/1 ARM.
At the moment, they do not offer second mortgages, such as HELOCs.
Filo Mortgage Rates
One nice thing about Filo Mortgage is you’ll find their mortgage rates right on their homepage.
No need to log in or provide your contact info first. Simply visit their website and click on today’s rates from the top menu to see their mortgage rates.
They list a 15-year, 20-year, and 30-year fixed mortgage rate, along with the points/fees required for said rate.
From what I saw, they offered very competitive interest rates and they were listed with $0 lender fees and no points, which seems to be their preferred setup.
In other words, the rate and APR should be the same, and they’re basically no cost loans that don’t require any lender fees or mortgage points, which is a big plus if you don’t want to pay attention out-of-pocket.
As noted, they don’t charge lender fees, though you can elect to pay discount points if you want an even lower rate.
The company also offers its so-called “Filo Mortgage Low-Rate Guarantee” that will put $1,000 in your pocket if another lender is offering a more competitive price.
Specifically, they’ll match the other lender’s pricing and credit you $1,000 at closing, which sounds like a pretty good deal and a testament to their low rates.
To qualify, simply find a lender with lower total lender costs (interest rate, points and fees) for the same conforming, conventional mortgage program on a primary home, whether it’s for a refinance or a home purchase loan.
Then send that Loan Estimate (LE) to Filo Mortgage so they can verify the pricing and terms – it must be received within one calendar day from the date Filo issues its initial locked LE.
All the more reason to put in the time to shop around with other lenders in case you do come across a better deal.
Filo Mortgage Reviews
At LendingTree, the company has a stellar 4.9 out of 5 rating from more than 600 reviews, with a 97% recommended score.
On Zillow, Filo Mortgage has a nearly perfect 4.96-star rating out of 5 from over 100 customer reviews, many of which say the interest rate and/or closing costs were lower than expected.
On Google, they have a 4.7-star rating from about 500 customer reviews, which shows how consistent they’ve been to date.
Lastly, they have a 4.7/5 rating on the Better Business Bureau website, a really strong score given it being a place customers typically go just to complain.
And they are an accredited business with the BBB (since early 2020), and currently hold an ‘A-‘ score based on complaint history.
In summary, Filo Mortgage appears to offer the latest technology, excellent customer service, and low mortgage rates with no lender fees, making them a suitable choice for both a home buyer or existing owner looking to refi.
They also have their Low-Rate Guarantee in place if you happen to find better pricing elsewhere while rate shopping.
The only real downsides are that they don’t lend in all states and may not offer every available loan program.
Filo Mortgage Pros and Cons
The Pros
They openly advertise their mortgage rates
Do not charge lender fees
Offer a low-rate guarantee if you find a better price
Can apply online via a digital mortgage application
Most Americans are frustrated by the housing market and are finding this a terrible time to buy, according to a poll released Tuesday.
The share of adults in the U.S. who say it’s a good time to buy a home — a measure of people’s perception of the housing market, separate from their thoughts on the overall U.S. economy — has dropped to the lowest level in 45 years, according to the research from Gallup. The drop in sentiment comes as mortgage rates and home prices stay elevated.
In other words, nearly 8 in 10 people say it’s a bad time to buy, Gallup said.
The company surveyed 1,013 people between April 3 to 25 as part of its annual Economy and Personal Finance poll.
The last time Americans felt so negatively about home-buying was in 2022, Jeff Jones, senior editor at Gallup, told MarketWatch.
“Historically, when people answer the question, they’re partly responding to the current housing market and home prices and interest rates, but also, to some degree, the long term benefits of owning a home,” Jones said. “But these last two years, we’re seeing the opposite — people are a lot more negative.”
Slightly more than half of the survey’s respondents said they believe home prices in their area will increase, a dip from last year’s 70%.
The median price for an existing home fell by 0.9% from last March, dropping to $375,700 this year. The drop is the largest since January 2012, when home prices fell 2% year over year. It’s also the second month in a row that home prices fell.
To be clear, this is only one firm’s gauge of consumer sentiment. Gallup’s read runs counter to what Fannie Mae
FNMA,
-2.34%
said about Americans’ attitude towards the housing market this spring, namely that consumers are feeling more optimistic about home-buying. The government agency’s survey noted that an increasing share of consumers expect mortgage rates to go down over the next year.
Gallup’s methodology differs from Fannie Mae, which could explain the difference in how their respondents viewed the housing market.
If you’re nearing the end of the initial term on your adjustable-rate mortgage (ARM), you might be wondering if now is a good time to refinance, and whether you should switch to a fixed rate.
In general, fixed-rate loans are good when rates are low or on the rise, because they lock in your payment and help you avoid constant rate increases. If rates are dropping, then an ARM lets you benefit from those decreases.
“The idea of trading away the uncertainty of an adjustable-rate mortgage for the certainty of a fixed-rate mortgage is appealing, especially if you’re expecting an adjustment in the next year or two,” says Greg McBride, CFA, chief financial analyst for Bankrate.
How to refinance an ARM
Like many types of loans, you can refinance an ARM. When you refinance an ARM, you replace your existing loan with a brand new one.
Lenders typically offer specific mortgage refinancing loans, so you’ll use their refinance application form to apply. Beyond that, the process is similar to your initial mortgage application, except that you already own the home. That can make some things, like inspections and appraisals a bit easier to schedule.
Keep in mind that you can choose the lender for your refinance. it could be your current lender or a different one.
To give yourself a good chance of qualifying for a refinancing loans, try to meet these requirements:
Own the home for at least six months
Have at least 20 percent equity
Have a credit score of at least 620 (for a conventional loan)
Have a debt-to-income ratio under 50 percent
Also keep in mind that you have to pay closing costs on the new loan, so you’ll want to make sure that you can afford to pay them. Also make sure that refinancing saves you more than it costs.
Benefits of switching to a fixed-rate mortgage
If you’ve never had a fixed-rate mortgage, here are the key upsides of this type of loan:
Your payments are always the same: A fixed-rate mortgage gives you the certainty of predictable payments. Rather than wondering how the market will impact your payments on an ARM, a fixed-rate option never changes for the entire loan term.
You can budget more easily: With a fixed-rate loan, you can plan for a stable housing payment.
You still have options: If a 30-year mortgage sounds like a lifetime, you can also look at a 15-year fixed-rate mortgage. The rates on this type of loan are even lower, but the tradeoff is that you’ll have higher monthly payments due to the accelerated timeline.
Is now a good time to refinance an ARM?
Mortgage rates rose significantly in 2022 and are much higher than they were in previous years. That means refinancing to a fixed-rate loan will lock in these high rates.
On the other hand, if your introductory rate is about to end, refinancing might still make sense, especially if you can secure a lower rate on a fixed-rate loan than the rate your ARM is about to adjust to. Another perk is that it gives you predictability despite today’s unpredictable rate environment.
Credit score: Do you have a strong enough credit score to obtain a competitive interest rate?
Financial goals: Would rather prioritize another goal such as paying off high-interest debt?
Longer-term plans: Will you stay in the home long enough for you to exceed the break-even point on your closing costs?
Ability to afford closing costs: Will the burden of paying closing costs outweigh the benefits of a lower monthly payment?
How is your credit?
Refinancing isn’t an automatic money-saver. You need to have strong credit to qualify for the lowest rate and the biggest savings opportunity. If you’ve been making timely payments on your ARM, that should be helping elevate your credit score.
“Someone coming up on the end of an ARM presumably has five or more years of timely mortgage payments on their credit history,” says Austin Kilgore, director of corporate communications at mortgage firm Achieve. “There’s a good chance their credit score is better now and they may qualify for something better.”
If your credit could use some work, however, it’s best to wait to refinance until you’ve improved your score. Check your credit report for any errors, such as incorrect contact information — and if something’s amiss, contact the credit reporting agency as soon as possible to get it fixed. If you can, pay down or pay off other debt, and continue to make credit card and other loan payments on time each month.
What are your financial goals?
Think about the financial goals refinancing can help you achieve, such as paying off your mortgage sooner, doing a cash-out refinance or consolidating debt. While a cash-out refinance increases the amount you owe, you’ll be able to use the funds for home improvements or other expenses or goals.
How long do you plan to stay in the home?
If you have no intention of moving or selling your home anytime soon, refinancing into a fixed-rate mortgage can be a smart decision. If a move is on your near-term horizon, however, it’s likely not worth the cost to refinance.
For example, if you’d save $100 on your monthly mortgage payment by refinancing, and the closing costs are $2,000, it’d take you 20 months, or close to two years, before you really start to see savings. Bankrate’s mortgage refinance break-even calculator can help you run the numbers for your situation.
“If you’re only looking at being at home for three or four more years and you have four years before it resets, and a new loan is not at least three-eighths of a basis point lower than your current rate, you might as well stay in your ARM,” advises Ralph DiBugnara, founder of Home Qualified, a digital resource for homebuyers and sellers. “There’s no financial benefit to move forward into a fixed rate.”
Should I refinance to a fixed rate mortgage?
At the very least, you should think about refinancing your ARM to a fixed rate if current mortgage rates are lower than the rate you’re paying or you’re nearing the end of the initial term on your ARM. The rate isn’t the only piece of the puzzle, however. Consider the following:
How much could you pay when your ARM resets? Make sure you have a clear understanding of the annual cap and the lifetime cap on your ARM. The annual cap will give you an idea of how much the rate could increase when it resets, and the lifetime cap is the maximum allowed for the entire duration of the loan.
Are you paying off an interest-only ARM? If your ARM included an interest-only introductory period, you’ve only needed to pay the interest, not the principal. Your payments will rise significantly when you have to pay down the actual loan, so it may be smart to refinance to a fixed-rate option.
Another thing to think about is refinancing your ARM to another ARM. This means getting another introductory rate period and kicking the can on truly adjustable rates down the road by a year or two – or five. Compare rates for new ARMs and fixed-rate loans to see if this makes sense.
Bottom line
Refinancing an ARM to a fixed-rate mortgage can be a wise investment in your financial future, potentially saving you thousands in lower monthly mortgage payments over the life of the loan. Not only that, you’ll be spared the uncertainty and stress that may accompany a fluctuating mortgage rate. Before you make your decision, take a holistic look at your financial situation and consider factors like your credit score, financial goals, and ability to afford closing costs.
The so-called “Keep Your Home California program” launched today, aimed at keeping, you guessed it, more Californians in their homes.
The program offers four types of assistance:
Unemployment Mortgage Assistance Program (UMA) – For unemployed homeowners who wish to stay in their homes, this program can provide up to six months of benefits with a monthly benefit of up to $3,000 or 100 percent of the existing total monthly mortgage payment, whichever is less.
Mortgage Reinstatement Assistance Program (MRAP) – This program will provide up to $15,000 per household to reinstate mortgage loans that are in arrears due to a temporary change in household circumstance, such as active military duty.
Principal Reduction Program (PRP)– This program aims to reduce avoidable foreclosures by providing principal reductions to those who have experienced economic hardship while also being in a negative equity position. Servicers can match funds allocated through the program.
Transition Assistance Program (TAP) – The final option provides funding to those where foreclosure is unavoidable to pay for relocation fees, used in conjuction with a servicer-approved short sale or deed-in-lieu of foreclosure.
Eligiblity is as follows:
– Home must be located in California
– You can only own a single property, a primary residence
– First mortgage must be less than or equal to $729,750 (conforming jumbo limit)
– No cash out received on a refinance or home equity line of credit
– Mortgage must have been originated on or before January 1, 2009
Call 888-954-KEEP or visit their website to see if you qualify.
The Keep Your Home California program final application deadline is at 7:00pm on June 29th, 2018.
Fighting about money is one of the top causes of strife among couples, and one of the main reasons married couples land in divorce court.
Married or not, it’s important to address the problems at the heart of financial disagreements and start communicating. Otherwise these issues may fester and grow.
Instead of judging each other’s spending habits or fighting over money, couples can learn how to start working on financial issues together as a team.
Here are some ways to help you make money discussions productive, and not a fight.
Common Causes of Couple Money Fights
While there are countless variations of money fights you might have, these are a few of the most common triggers:
Sharing important account information
Some couples struggle with privacy limits and financial security, and they may disagree upon what level of access their partner should have to their financial accounts. If one partner feels they don’t have fair access to financial accounts, passwords, and paperwork, resentment can build.
Married couples in particular may find it confusing and challenging to not have a full picture of their complete financial health.
Determining budgeting and spending limits
Maybe one of you likes to spend and enjoy life. And the other likes to save for a rainy day. This disconnect happens all the time. Not all couples see eye to eye on how much they should be spending and this can lead to anger and tension.
Dealing with debt
If one partner brings debt with them to the relationship, it isn’t uncommon for the couples to disagree about who is responsible for paying off the debt.
Tackling debt can be stressful under the best circumstances, and it can lead to turmoil and fighting if a romantic partner feels the debt is an unfair burden on the relationship.
Savings and investing
Some couples can’t agree how much money they should save and how they should be saving it.
One partner may feel investing their savings is the better path to a stronger financial future, but the other partner may find investing too risky and want to keep the money in a high-yield savings account. This can cause turmoil if both partners’ chosen path forward is the only one they are comfortable with.
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Retirement planning
When you’re balancing a lot of different expenses, deciding as a couple how much money to save for retirement and what age they may want to retire can be challenging.
But those who don’t have a plan for slowly and consistently saving for retirement can find themselves continually fighting about retirement savings. This is especially true if one partner is particularly worried about not being financially prepared for the future.
How to Stop Fighting About Money
Before your next money fight erupts, try these tips to help stop the arguing.
Changing the way you talk about money
Working on your communication skills can help keep financial discussions from devolving into arguments.
When you’re discussing money, the main goal of a productive talk is to really listen to each other and try to understand the other person’s point of view, as opposed to jumping to conclusions or making accusations.
One technique that can help with this is using “I” instead of “you” in your statements. For example, one partner might say, “I get frustrated when the bills aren’t paid on time. Can I help you out with that?” rather than, “you never pay the bills on time.”
Another method is trying to avoid using the words “always” and “never” when discussing money matters. These terms can put the other person immediately on the defensive.
Setting up a budget together
Creating a budget as a couple is key. To help establish your saving goals and monthly spending targets, begin by figuring out what your joint net worth is. Then track your income and expenses for several months.
Once you know what you’re spending money on, you can work out a flexible budget, with short-term financial goals and long-term goals.
Planning ahead helps both partners agree on how much needs to be set aside for retirement or a down payment on a house, and how much you each can allocate to spending as you individually see fit.
Being open and honest
It’s tempting to omit key information when we’re trying to avoid conflict. But even if a person doesn’t fib about an expensive purchase or lending money to a family member, failing to share significant financial information can make the other partner feel like they’re being lied to and misled. This can breed distrust and cause financial stress.
Prevent these problems by being honest about financial decisions, even if you know they may upset your partner. As reluctant as you may be to bring these topics up, it can be better in the long run than hiding it from them and committing financial infidelity.
Establishing some boundaries
One way to avoid the need to cover up pricey purchases is to agree to a few simple rules about what spending decisions should be shared and what spending decisions are okay to make solo.
For example, one couple may decide they don’t need to alert each other about a purchase if it’s under $500. Another couple may agree to lend money to siblings when they need it. And some couples may together decide to never lend money to friends or family under any circumstances.
By setting boundaries and limits, and then adhering to them, couples may stop feeling like they have to report their every financial move.
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Setting up a joint account
One of the main benefits of opening a bank account together is that it can provide a clear financial picture. A joint account allows couples to track spending, and it can make sticking to a budget easier, while also helping to foster openness.
On the downside, sharing every penny can sometimes lead to tension and disagreements, especially if partners have different spending habits and personalities. One solution might be to have a joint checking and savings account, as well as two individual accounts with a set amount of money to play with every month.
Having different accounts, including one for their personal use, can give each partner some freedom to spend on themselves without having to explain or feel guilty about their expenditures.
Teaming up against debt
Working together on a reasonable plan to start getting out of debt can help couples alleviate a major stress on their marriage.
One strategy for debt reduction might be the avalanche method. To do it, you make a list of all your debts by order of interest rate, from the highest percentage to the lowest. Then, while continuing to make all your minimum monthly payments on existing debts, the couple might decide to put as many extra payments as possible to the highest interest rate loan.
Or, they might decide to simply eliminate the smallest debt first, or look into consolidating debts into a single loan, which could make it easier to manage.
Whatever plan you agree on, working on debt reduction can give you a shared goal to work toward together.
Scheduling a monthly financial check-in
Even if one partner takes on a bigger role in managing finances, paying bills, and keeping on top of the budget, both parties need to stay up to date on what’s going on in order to achieve financial security.
Rather than only talking about your finances when you’re stressed about bills, a better strategy might be to set a specific time on your calendar each month to sit down together and review your recent spending, income, savings, bills, and investments.
If you can’t swing monthly meetings, then aim for quarterly or biannual financial sit-downs.
Getting help from an advisor
While spending more money may seem like an added stressor, some couples who pay for a financial coach may find that it helps them save more down the road.
And, it might be easier to talk about an emotionally charged subject like money with an unbiased third party who can help diffuse tension and get you both to agree on a smart spending and savings strategy.
The Takeaway
Fighting over money, or finding it hard to talk openly and constructively about it, is a common source of friction between couples. Some strategies that can help include learning how to communicate about financial issues more productively, setting up monthly money check-ins, and letting each partner have some financial privacy.
For couples who are ready to integrate their finances, SoFi Checking and Savings makes it easy to create a joint account that gives you both shared access to your money. Plus, you’ll earn a competitive APY and pay no account fees. That’s something that you can both agree is a good thing!
Manage your money as a team with SoFi Checking and Savings.
The SoFi Bank Debit Mastercard® is issued by SoFi Bank, N.A., pursuant to license by Mastercard International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.
SoFi members with direct deposit can earn up to 4.20% annual percentage yield (APY) interest on Savings account balances (including Vaults) and up to 1.20% APY on Checking account balances. There is no minimum direct deposit amount required to qualify for these rates. Members without direct deposit will earn 1.20% APY on all account balances in Checking and Savings (including Vaults). Interest rates are variable and subject to change at any time. These rates are current as of 4/25/2023. There is no minimum balance requirement. Additional information can be found at http://www.sofi.com/legal/banking-rate-sheet. Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances. SOBK0523017U