If you’re an active duty or veteran homeowner (or aspiring home buyer), chances are you’ve heard of Veterans United Home Loans.
They are the largest VA home purchase lender in the nation. And have been since 2016 (seven consecutive years).
Their specialty is providing financing to veterans looking to buy homes. And about 75% of their overall business consisted of purchase loans.
In 2022, the Missouri-based lender also took the overall lead in the VA lending category.
So chances are they’re pretty knowledgeable when it comes to helping military members buy homes. Read on to learn more.
Veterans United Home Loans Fast Facts
Direct-to-consumer mortgage lender
Founded in 2002, headquartered in Columbia, Missouri
A DBA of Mortgage Research Center, LLC
Focuses primarily on VA loans but offers FHA and conventional too
Licensed to do business in all 50 states and D.C.
The #1 VA lender nationally in 2022
Funded $26.5 billion in VA loans last year
30th largest home loan lender overall
Has physical branches in 17 states
As noted, Veterans United Home Loans is a juggernaut in the VA lending world, having ascended to the top of the pile in 2022, per HMDA data.
Last year, the company funded more than $31 billion in home loans, with about 95% of it VA loans.
They also doled out nearly $2 billion in conventional loans, FHA loans, and even some USDA loans. But they’re clearly best known for being a VA loan lender.
Veterans United acts as a direct-to-consumer retail mortgage lender, offering both home purchase loans and refinances.
The company got its start all the way back in 2002 and is headquartered in Columbia, Missouri.
Since inception, they’ve closed more than 500,000 VA loans with the help of many former military members that make up their staff.
The company also recently hired hilarious movie star (and former member of the United States Marine Corps Reserve) Rob Riggle as a spokesperson.
At last count, they also have physical branch locations in 17 states nationwide.
The company operates a network of Veteran-friendly real estate agents known as Veterans United Realty.
And offers credit consulting to help borrowers improve their credit scores to help qualify for a home loan.
How to Apply with Veterans United
To get started, you can call them directly, head to their website, or go to a physical branch if one is located nearby.
If you go the online route, they’ve got a quote generator that asks a series of questions, then puts you in touch with a loan officer.
From there, you can check eligibility, gather pricing, and eventually complete a VA loan application electronically.
Once your loan is submitted, you’ll be able to manage your application via myVeteransUnited.
The dashboard allows you to securely upload documents, sign forms and disclosures electronically, monitor your progress, get in touch with your lending team, and more.
They also offer a free smartphone app that allows you to get pre-approved for a mortgage, view your to-do list, or upload photos of requested documents.
All in all, they make it easy to get through the home loan process, and are well-versed in both VA eligibility and financing protocol overall.
This means you should be paired with knowledgeable staff, while having flexibility in terms of how you complete the loan process.
Loan Programs Offered by Veterans United
Home purchase loans
Refinance loans (IRRRL and VA cash out)
Jumbo VA loans
VA Energy Efficient Mortgages
Loans for first-time home buyers
FHA loans
Conventional loans (non-gov)
Veterans United offers both home purchase loans (their specialty) and refinance loans.
This includes the VA Interest Rate Reduction Refinance Loan (IRRRL), the VA cash out refinance, and even the VA Energy Efficient Mortgage (EEM).
You can also get a jumbo VA loan if purchasing or refinancing in an expensive region of the country.
Eligible property types include primary single-family homes, VA-approved condos, multi-unit properties, and even modular homes.
While they don’t seem to market non-VA loans, they did originate nearly $2 billion in conventional loans, FHA loans, and USDA loans last year.
So my assumption is they also offer those types of loans alongside their core VA offerings.
In terms of qualifying, they appear to require a minimum 620 FICO score, which might be a hurdle for some.
While the VA doesn’t have a minimum credit score, some lenders are more liberal than others. For example, Rocket Mortgage allows scores down to 580 for VA loans.
If your scores are below their minimum requirement, the company’s credit consulting group might be able to assist.
Veterans United says it does not lend on manufactured homes, nor does it offer VA construction loans.
With regard to loan type, they only offer fixed-rate mortgages, such as a 30-year fixed or 15-year fixed.
No second mortgages or home equity loans/lines are offered.
Veterans United Mortgage Rates
One nice thing about Veterans United transparency-wise is they list their daily mortgage rates online.
So you don’t have to guess how competitive they are – simply head to their website and click on the “VA loan rates” link.
You’ll see daily rates for a 30-year fixed VA purchase loan and 30-year fixed VA refinance loan, along with the discount points required.
If you want to fine-tune rates, they allow you to customize your rate based on credit score.
For more accurate and robust pricing, reach out to a licensed loan officer for a quote.
While they do publicize their mortgage rates, it’s unclear what lender fees they charge.
Pay close attention to your quoted APR and read your loan estimate to see what lender fees are charged, if any.
Some lenders charge a loan origination fee and/or fees for underwriting, processing, etc., while others do not.
Take the time to compare their quote to other lenders, both those that specialize in VA loans and perhaps those that don’t. You can also include mortgage brokers in your comparison shopping.
Veterans United Reviews
Veterans United has no shortage of customer reviews.
Over at Trustpilot, Veterans United has an “excellent” 4.9/5 rating from nearly 10,000 customer reviews.
And at Zillow, a very good 4.78/5-star rating from over 5,100 customer reviews.
On Google, they’ve got a 4.8/5 rating from roughly 4,500 reviews, and a perfect 5.0 on Bankrate from 3,300 reviews.
What’s more impressive is 100% of reviewers on Bankrate would recommend them to others.
At LendingTree, they have a 5/5 score from 3,100+ reviews, a 99% recommended score, and landed in the top-10 for customer satisfaction in Q4 2022.
If that’s not enough, they’ve got a 4.9 out of 5 from nearly 3,000 reviews on Credit Karma.
They also have over 346,000 reviews on their own website, with a 4.8 out of 5 average satisfaction rating and a 98% recommend score.
Lastly, they are a Better Business Bureau (BBB) accredited company, and currently hold an ‘A+’ rating based on complaint history.
However, they have had 150 complaints over the past 3 years, per the BBB website.
On the upside, they have a 4.82/5 rating on the BBB website based on nearly 2,500 customer reviews, which is a pretty solid score.
To sum things up, Veterans United is probably one of the most experienced VA home loan lenders out there, especially when it comes to purchase loans.
But take the time to comparison shop and don’t overlook rates and fees, which can stay with you a lot longer than the month or two it takes to close on a mortgage.
Veterans United Pros and Cons
The Good
Can apply online, by phone, or at a branch
Offers a digital, mostly paperless mortgage experience
All major VA loan types available (and non-VA loans as well)
Displays their daily mortgage rates online
Excellent customer reviews across many ratings websites
A+ BBB rating, accredited company
Free smartphone app
The Maybe Not
Doesn’t lend on manufactured housing
No ARMs, second mortgages, or VA construction loans
I know there is something about a mosquito, an albino, and “feeling stupid” but, to be honest, I have no idea what the lyrics in “Smells Like Teen Spirit” even mean.
However, the nonsensical lyrics and simplistic melody didn’t stop Kurt Cobain and his grunge band Nirvana from creating one of the most memorable songs of the century, dominating the airwaves when it was released in 1991 and only increasing in popularity over the past twenty years. Wikipedia even calls the song “one of the greatest rock songs of all time.”
While I don’t understand the meaning of the song, every time I hear it I think of one thing: my retirement.
Let me explain.
Living Like A Rock Star
Immediately after marrying the girl of my dreams, I began looking to buy a home. Neither my wife nor I made a lot of money but we had decided that it would be cheaper for us to buy a home than to rent (and far better than living with family.) We began to look at our options and discovered a small duplex that was in our price range. This property consisted of two separate homes crammed onto one small lot. We bought the property, cleaned up both homes, moved into the small one-bedroom home in the back, and put a renter in the home in the front.
Soon after our tenants complained of “flashes of light” coming through their front windows. I thought nothing of it.
Several years went by and various tenants moved in and out. I heard the same story several times and assumed the flashes were the county or the city doing some kind of analysis. Finally one day the tenants got a knock at the door and opened it to several tall, blonde Swedish tourists.
They wanted a tour of Kurt Cobain’s house.
I knew Kurt Cobain was originally from my city (Aberdeen, Wa) but little did I know – my duplex was actually his first home. I discovered later that Cobain had actually lived in both homes, moving from one house to the other during the first year of his life. His parents moved again to a new location before Cobain was even two years old – but his brief residency at the two homes was enough to put my little duplex on the tourist route of those looking for a glimpse of Cobain’s past.
Despite the cool background story- the “Cobain connection” is not my favorite part about that duplex.
It get’s better.
“What could be better than a rock star living at your home?” you ask!
…well, a lot of things.
Jesus
A new Star Wars movie
“DoubleStuf” Oreos
Kittens
You get the point. It’s not that great compared to a lot of things.
However, what I’m talking about is the freedom that duplex provided.
Starting Out Is Hard
Life is expensive and your first few jobs probably don’t pay a lot. Sure, there are a lot of great tips for saving money, but most tips don’t make rent any cheaper or help you earn much more money.
However, buying that duplex did both.
The total cost of the duplex was $80,000.00. With a 3.5% down payment through the FHA loan program (well, it was 3% at the time) the total down payment was just under $3,000 and our monthly payment (including all expenses) was just $600.00 per month. The front home rented for $600.00 per month.
Free living!
My wife and I now lived in our own home for absolutely free. Granted, I needed to fix things when they broke and I had to learn the ins and outs of being a landlord – but we were living for free.
A year later we moved again to a different home (purchased a larger home just one block away) but we still owned the duplex. We simply rented the back house out for $500 per month and now that duplex creates positive income each and every month. Sure, there are maintenance issues that come up every so often (which I usually hire out) and I’m not going to say I always love being a landlord – but starting out with a duplex was one of the best decisions I have ever made.
The Benefits Of A Duplex
I’m not one of those gurus who is going to tell you buying a house is the best thing for you to do.
In reality – buying a home is not right for everyone.
I’ve purchased a lot of properties over the past several years (including single-family homes, multifamily properties, and even an apartment complex) and I spend a lot of time teaching people how to invest in real estate and buy their first home – I recognize that this isn’t the right path for all. I love real estate and especially in the financial leverage real estate has for investments – but others might hate the idea of investing in any type of real estate.
However, if you’ve weighed the options and believe that home ownership is a path you want to pursue, buying a duplex is an excellent option for your consideration. Let me explain a few reasons why:
Easy to Qualify For: Qualifying for a small multifamily property (duplex, triplex, and 4-plex) is exactly the same as trying to qualify for a single family home. You can often times get into a property like this for as little as 3.5% down payment using the FHA loan program. The FHA even has programs that will allow you include “rehab” money into the loan so you can fix it up nice. Additionally, some banks allow you to use the income you’ll be receiving from rent to help you qualify for the loan.
More Money: Obviously, if you “buy smart” – your duplex can provide extra cash to help pay the mortgage, cover you during hard times, or even live for free. This is also an excellent way to pay down your mortgage faster (by applying the rent payment toward paying down your loan.)
Less Risk: One of the most significant benefits of having multiple units is the decreased risk you have of losing your home if something bad happens to your income situation. This benefit increases if you buy a triplex or a four-plex, as the risk is more diversified.
On the Job Training: If you are considering using real estate as part of your future investment strategy, a duplex that you live in can be a great way to learn how to effectively manage rental property. Being a landlord is not always fun, but 80% of the hassle can be eliminated by simply buying smart and managing effectively. Most “burned out” landlords I know became so by treating their rentals as a relaxed hobby rather than a business. By starting small, you will learn how to grow your investment portfolio in a smart, scalable way that won’t make you hate your life as an investor.
Jump Start for your Financial Future: Chances are you don’t want to live in a duplex for very long. However, your first home is seldom the home you stay in. By purchasing a duplex with a long term, fixed rate mortgage (the only type of mortgage you should ever get) you are able to control that property for the rest of your life. Because the property is your personal home, you get to take advantage of the incredibly low interest rates for your primary residence – which translates to low monthly payments that stay the same while rent climbs higher year after year. Purchasing a duplex can be an excellent jump-start to your retirement planning, even if that event is years away.
You Don’t Need To Be A Rock Star To Buy A Duplex
As I said before, owning property is not for everyone. However, making your first home a duplex (or other small multifamily property) can be extremely advantageous for you and your financial future. Not every duplex (or even most) are worth buying, but finding a good deal using math that makes sense is the key to success in real estate. I highly encourage you to take a look at some duplexes if you are itching to buy a home. It might be the difference between success and just wishing for a home. The “Cobain Duplex” is not my favorite investment property because of it’s unique history – it’s my favorite because of the financial helping hand this home gave me when starting out and continues to give me every month.
Have you considered buying a duplex? I’d love to hear your thoughts (positive or negative) on making a duplex your first property or any other real estate questions or comments you might have. Please leave me a comment below and let’s talk about it!
Brandon Turner is an active Real Estate Investor, Entrepreneur, World Traveler, Guitar Player, and Husband. He is located in Grays Harbor, Washington and enjoys finding killer Real Estate deals, leading worship at his local Calvary Chapel, bonfires on the beach, backpacking Europe, and speaking in third person. If you’d like to get a free copy of “7 Years to 7 Figure Wealth,” Brandon’s first eBook and personal manifesto regarding the quickest and most stable way to financial freedom through real estate, please visit his website at www.RealEstateInYourTwenties.com.
Here at GRS, we’ve briefly covered different daily tasks that are cheaper to do yourself, but sometimes the frugal-minded want some dollars and cents to tie to these decisions.
Today, I’m going to take a look inside the heart of the frugal home, the kitchen, and at a few delicious staples for the average foodie. I’m going to compare prices for making food yourself versus buying it in the store. Unless otherwise noted, these average prices were retrieved from the website of Vons, a West-Coast grocery chain, so prices may vary in your part of the world!
Which is Cheaper: Homemade or Store Bought Bread?
For those of us raised on peanut butter and jelly sandwiches made of thin, white, butter bread, discovering the world of thick, crusty baguettes and pungent ryes might have been something of a life-changing experience.
Since there are literally hundreds of different types of bread, both to buy and to make, our recipe is for your average simple yeasted white bread. It also does not take into account extra purchases like bread-making machines that might lessen the time burden but increase the base cost.
The Common Shopper: Store Bought Loaf Safeway Butter Top Wheat Bread 22 Oz – $1.99 Natures Own 12 Whole Grain Bread 24 Oz – $4.99 Open Nature 100% Whole Wheat Bread 24 Oz – $1.99
The Alternative: Homemade Bread Milk 2 Oz — $.16 Butter 2 Oz — $.48 Sugar 1 Oz — $.07 Flour 24oz — $1.44 Salt ½ Oz – $.02 Dry Yeast – $2.19
Total cost approximate 28oz – $4.36
Which is Cheaper? Winner: Store Bought! Though as you can see, the price ranges on bread are wild. Your bakery might have better specials, so price it for yourself and gauge the final cost according to how much free time you like spending in the kitchen. If you have a few hours and some yeast on hand, make yourself some delicious cheap bread. I guarantee it will improve your sandwiches!
Which is Cheaper: Homemade or Store Bought Yogurt
Yogurt is an incredibly versatile food that is palate pleasing for breakfast, a snack, and —in a pinch—a creamy sour cream replacement that can do wonders on tacos and in mashed potatoes in its unsweetened plain form.
So imagine how exciting it would be to be able to make gallons of it at a time that, in its cultured state, will last for weeks in the fridge. Yum!
The Common Shopper: Store Bought Yogurt Dannon Light N Fit Vanilla Yogurt 32 Oz – $4.99 Chobani Greek Yogurt Plain 2% Fat 32 Oz – $5.99 Mountain High Plain Yogurt 32 Oz – $4.19
The Alternative: Homemade Yogurt Milk 32 Oz — $2.49 Starter Yogurt 6 Oz – $.80
Total cost 32 Oz – $3.29
Which is Cheaper? Winner: Homemade Yogurt, especially if you consider the ease at which you can double or quadruple your recipe without an extensive cost increase. If yogurt is a snack or breakfast staple, you can greatly reduce your costs by preparing it at home by the gallon. Find a recipe that works for you and get cookin’!
Which is Cheaper: Scratch Cake or Store Bought Cake
Queen of birthday parties and weddings, the traditional cake might not be a daily or weekly treat, but for the sake of your emotional happiness you might want to incorporate one into your diet at least quarterly.
For the purpose of keeping it simple, our homemade scratch cake is a simple white cake with white icing.
The Common Shopper: Store Bought Bakery Cake 8 Inch, 2 Layer White Cake – $15.99 8 Inch, 2 Layer Carrot Cake – $9.99
The Alternative: Homemade Scratch Cake The Cake: Sugar 8 Oz – $.56 Butter 4 Oz – $.96 Eggs 2 – $.55 Vanilla Extract ½ Oz —$1.43 Flour 12 Oz — $.72 Baking Powder ¼ Oz — $.06 Milk 4 Oz – $.32
Which is Cheaper? Winner: Scratch cake! But even without doing the math, I think we all know the cheapest method of all: boxed cake mix. That said, if you like control of the ingredients and want to get a lot of compliments, making a cake from scratch might be the way to go.
Which is Cheaper: Homemade or Store Bought Granola
The basics of granola are simple, but the magic that happens when combined in a bowl with milk or yogurt is far from ordinary. So, you’d think that lightly-sweetened baked oats plus combination of fruit or nuts would be the cheapest thing around, right? Read on!
The Common Shopper: Store Bought Granola Bear Naked Fruit And Nut All Natural Granola 12 Oz – $3.99 Open Nature Granola Cranberry Nut Goodness 12 Oz – $3.00 Cascadian Farm Organic Granola Fruit And Nut 13.5 Oz- $3.99
The Alternative: Homemade Granola Honey 2 Oz – $.41 Coconut Oil 1 Oz – $.74 Vanilla Extract ¼ Oz – $.72 Dried Apricot (Fruit) 2 Oz – $1.26 Butter 1 Oz – $.24 Quaker Oatmeal 10 Oz – $1.30
Total cost 13 Oz – $4.67
Which is Cheaper? As you can see, a batch of homemade granola falls right within the range of purchasing it in the stores. But much like yogurt, it is easy to exponentially increase the prepared granola, especially if you have a simple homemade granola recipe to follow. This one is a coin-toss.
Final Thoughts
You can tweak any recipe to be cheaper or more expensive depending on where you source your ingredients, but if cooking is not a fun recreational experience for you, you might also factor in how much money your time is worth.
Overall, it would appear that store bought food is right on trend with the cost of homemade preparation. But if you take it a step further and take into account production costs, packaging, and advertising, it becomes clear that the cost of the food in the package does not go right into the food itself. Homemade food items have the benefit of being fresher, (usually) more delicious, and full of ingredients you know and love.
The choice is yours in the kitchen: homemade or pre-made, and especially if you use items that are on sale, both appear to be frugal options.
Inside: This guide will teach you about the different factors you need to consider when purchasing a home with a 70k salary.
There are a lot of factors to consider when you’re trying to figure out how much house you can afford. Your income, your debts, your down payment, and the interest rate on your mortgage all play a role in determining how much house you can afford.
Your situation will be different than the person next-door or your co-coworker.
Making 70000 a year is a great salary. You are making the median salary in the United States.
It’s enough to comfortably afford most homes and gives you plenty of room to save money each month.
But how much house can you actually afford?
It depends on several factors, including your down payment, interest rate, income, and credit score.
In this ultimate guide, we’ll walk you through everything you need to know about how much house you can afford making 70000 a year.
how much house can i afford on 70k
In general, you can expect to spend 28-36% of your income on housing.
Generally speaking, if you make $70,000 a year, you can afford a house between $226,000 and $380,000.
How much mortgage on 70k salary?
In general, you should expect to spend no more than 28% of your monthly income on a mortgage payment.
Thus, you can spend approximately$1633-2100 a month on a mortgage.
Just remember this is relative to the interest rate, term length of the loan, down payment, and other factors.
This post may contain affiliate links, which helps us to continue providing relevant content and we receive a small commission at no cost to you. As an Amazon Associate, I earn from qualifying purchases. Please read the full disclosure here.
28/36 Rule
But there’s one factor that trumps all the others: The 28/36 rule.
Also known as the debt-to-income (DTI) ratio.
The 28/36 rule is a guideline that says that your housing costs (mortgage payments, property taxes, homeowners insurance, and HOA fees) should not exceed 28% of your gross monthly income.
And your total debt (housing costs plus any other debts you have, like car payments or credit card bills) should not exceed 36% of your gross monthly income.
You must follow the 28/36 rule.
How to calculate how much mortgage you can afford?
If you’re like most people, you probably don’t know how to calculate how much mortgage you can afford.
This is actually a really important question that you need to ask yourself before beginning the home-buying process.
The answer will help determine the price range of homes you should be looking at. Plus know how much money you’ll need to save for a down payment.
Step #1: Check Interest Rates
Research current mortgage rates to get an accurate estimate. You can also check your credit score and search for average mortgage rates based on your credit score.
Right now, with sky-high inflation, you are unable to afford a bigger house when interest rates are hovering around 6% compared to ultra-low interest rates of 2.5%.
With a 70k salary, this can be the difference between $50-100k on the total mortgage amount you can afford.
Step #2: Use a Mortgage Calculator
Use a mortgage calculator to get an estimate of the home price you can afford based on your income, debt profile, and down payment.
Generally, lenders cap the maximum amount of monthly gross income you can use toward the loan’s principal and interest payment to not more than 28% of your gross monthly income (called the “Front-End” or “Housing Expense” ratio). Then, limit your total allowable debt-to-income ratio (called the “Back-End” ratio) to not more than 36%.
You can use a mortgage calculator to a ballpark range of what house you can afford.
Step #3: Taxes, Insurance, and PMI
When planning for a home purchase, it’s important to factor in all of your monthly expenses, including taxes, insurance, and PMI.
This will ensure that you get an accurate estimate of your home-buying budget based on your household annual income.
Don’t forget to include these payments to get a realistic understanding of your monthly budget.
Step #4: Remember your Living Expenses
When considering how much house you can afford based on your $70,000 salary, you must consider your lifestyle and current expenses.
It is important to factor in other monthly expenses such as cell phone and internet bills, utilities, insurance costs, and other bills.
More than likely, you will be approved for a higher mortgage amount than you would feel comfortable with. This is 100% what lenders will do.
They want to provide you with the most you can afford – not what you should afford.
Step #5: Get prequalified
Prequalifying for a mortgage is an important first step to take when estimating how much house you can afford.
It gives you a more precise figure to work with and helps you make a more informed decision based on your personal situation.
Remember that your final amount will vary depending on a number of factors, especially your interest rate, which will be based on your credit score.
Taking the time to research current mortgage rates helps you secure a better mortgage rate, giving you more buying power.
Home Buying by Down Payment
How much house can you afford?
It’s a common question among home buyers — especially first-time home buyers. Use this table to figure out how much house you can reasonably afford given your salary and other monthly obligations.
The assumption is 30 year fixed mortgage, good credit (690-719), no monthly debt, and a 4% interest rate.
Annual Income
Downpayment
Monthly Payment
How Much House Can I Afford?
$70,000
$9,552 (3%)
$1,750
$318,412
$70,000
$16,215 (5%)
$1,750
$324,316
$70,000
$34,058 (10%)
$1,750
$340,581
$70,000
$53,573 (15%)
$1,750
$357,152
$70,000
$75,094 (20%)
$1,750
$375,468
$70,000
$98,933 (25%)
$1,750
$395,731
**Your own interest rate, monthly payment, and how much house you can afford will vary on your personal circumstances.
Mortgage on 70k Salary Based on Monthly Payment and Interest Rate
How much house can you afford on a $70,000 salary?
This largely depends on the current interest rate of the mortgage loan you’re considering. When interest rates are high, people aren’t actively buying as when interest rates are low.
By understanding these factors, you can better gauge how much house you can afford on a $70,000 salary.
The assumption is 30 year fixed mortgage, good credit (690-719), no monthly debt, and a 20% downpayment.
Annual Income
Monthly Payment
Interest Rate
How Much House Can I Afford?
$70,000
$1,750
3.25%
$406,796
$70,000
$1,750
3.5%
$396,231
$70,000
$1,750
3.75%
$386,101
$70,000
$1,750
4%
$375,994
$70,000
$1,750
4.5%
$357,554
$70,000
$1,750
5%
$339,954
**Your own interest rate, monthly payment, and how much house you can afford will vary on your personal circumstances.
Home Affordability Calculator by Debt-to-Income Ratio
Around here at Money Bliss, we always stress that debt will hold you back.
In the case of buying a house, debt increases your DTI ratio.
Here is a glimpse at what monthly debt can cause your debt-to-income (DTI) ratio to increase. Thus, making the house you want to buy to be more difficult.
Annual Income
Monthly Payment
Monthly Debt
How Much House Can I Afford?
$70,000
$2,100
$0
$440,085
$70,000
$1,900
$200
$404,584
$70,000
$1,800
$300
$382,334
$70,000
$1,600
$500
$337,883
$70,000
$1,350
$750
$282,208
$70,000
$1,100
$1000
$226,582
**Your own interest rate, monthly payment, and how much house you can afford will vary on your personal circumstances.
Increase your Home Buying Budget
Here are a few ways you can increase your home buying budget when buying a house on a $70k annual income.
By following these steps, you can increase your home buying budget and find a more suitable house for your income.
1. Pick a Cheaper Home
Home prices vary significantly in different parts of the country.
Moving out of a major metropolitan area with notoriously high housing costs can help you find more affordable homes.
There are plenty of ways to find a home that is cheaper than you would normally expect.
Look for homes that are for sale in less desirable neighborhoods.
Find homes that are for sale by owner or have not been listed yet.
Check for homes that are for sale outside of your usual price range and haven’t sold as they may drop their price.
Move to a lower cost of living area.
2. Increase Your Down Payment Savings
A larger down payment can reduce the amount you have to finance, which lowers your monthly payment.
Plus help you get a lower interest rate and avoid paying PMI.
Putting down at least 10-20 percent of the home sale price can help boost your home buying power. You can also take advantage of down payment assistance programs in your area.
3. Pay Down Your Existing Debt
Paying down your debts such as credit card debts or auto loans can help raise your maximum home loan.
Paying down your debts can help you qualify for a higher loan amount.
This is because when you have lower amounts of debt, your credit score is higher and your debt-to-income ratio is less. This means you are less likely to be rejected for a home loan.
4. Improve Your Credit Score
A higher credit score can lead to lower rates and more affordable payments.
You can improve your credit score by:
Paying your bills on time
Paying down your credit card balances
Avoiding opening new credit before applying for a mortgage
Disputing any errors on your credit report
This is very true! We had an unfortunate debt that wasn’t ours added to our credit report right before closing. While the debt was an error, it still cost us a higher interest rate and forced us to refinance once the credit report was fixed.
5. Increase Your Income
Asking for a raise, seeking a higher-paid position, or starting a side gig can help you increase the amount of home you can afford.
While you need two years of income from a side gig or your own online business to count as income, the extra cash earned helps you to increase the size of your downpayment. Plus it lowers your debt-to-income ratio with the savings you are setting aside.
What factors should you consider when deciding how much you can afford for a mortgage?
How much house can you afford on your current salary and with your current monthly debts?
This is a question that we are often asked, and it’s one that we love to answer.
We’ll walk you through all the different factors that go into this decision so that you can make an informed choice.
1. Loan amount
The loan amount is a key factor that affects the total cost of a mortgage.
If you have no outstanding debt, a 20% down payment, a high credit score, and a 3.5% interest rate from an FHA loan, you could be able to afford up to $508,000.
However, if you have debt, a smaller down payment, or a lower credit score, the loan amount you can qualify for will be lower.
Similarly, if you choose a 15-year fixed-rate loan, your monthly payments will be higher, but you will end up paying less in interest over the life of the loan than with a 30-year fixed-rate loan.
Ultimately, your loan amount will affect the total cost of your mortgage, so it’s important to consider all the factors when making your decision.
2. Mortgage Interest rate
Mortgage interest rates can have a significant impact on the cost of a mortgage. The higher the interest rate, the more expensive the loan will be.
For example, a difference between a 3% and 4% interest rate on a $300,000 mortgage is more than $150 on the monthly payment.
Remember, in the first few years of a mortgage, the majority of the payment goes toward interest rather than trying to reduce the principal amount.
3. Type of Mortgage
The primary difference between a fixed and variable mortgage is the interest rate and the amount of your payment
Fixed-rate mortgages offer the stability of having the same interest rate for the life of the loan.
Adjustable-rate mortgages (ARMs) come with lower interest rates to start, but those rates can change over the life of the loan. ARMs are often a riskier choice, as if the economy falters, the interest rate can go up.
Fixed-rate loans are typically the most popular choice, as the monthly payment amount is more predictable and easier to budget for. The terms of a fixed-rate loan can range from 10 to 30 years, depending on the lender.
Adjustable-rate mortgages (ARMs) have interest rates that can increase or decrease annually based on an index plus a margin. ARMs are typically more attractive to borrowers who plan on staying in the home for a shorter period of time, as the lower initial interest rate can make the payments more manageable.
The Money Bliss recommendation is to choose a 15-year fixed-rate mortgage.
4. Property value
Property value can have a direct effect on how much you can afford for a mortgage.
As the value of the property increases, so does the amount of money you will need to borrow to purchase it. This, in turn, affects the monthly payments and the amount of interest you will pay over the life of the loan.
This is especially important as many people have been priced out of the market with the rising home prices.
Additionally, higher property values can mean higher taxes, which will add to the amount you need to budget for your mortgage payments.
5. Homeowner insurance
Homeowner’s insurance is a requirement when securing a loan and it can vary depending on the value and location of the home.
Additionally, certain areas that are prone to natural disasters or are located in densely populated areas may have higher premiums than other locations and may require additional insurance like flood insurance.
As a result, lenders typically require that you purchase homeowners insurance in order to secure a loan, and may have specific requirements for the type or amount of coverage that you need to purchase.
Before committing to a mortgage, it is important to consider the cost of homeowner’s insurance and make sure it fits into your budget.
This is something you do not want to skimp on as the cost to replace a home is very expensive.
6. Property taxes
Property taxes are calculated based on the value of a home and the tax rate of the city or county where the property resides.
The higher the property taxes, the more you will have to pay in your monthly mortgage payment.
In states with high property taxes, the property tax bill can be a large sum of the mortgage payment.
It is important to consider these costs when comparing different homes and locations to ensure you can afford the home without stretching your budget too thin.
7. Home repairs and maintenance
It’s important to also consider other factors such as the age of the house, since some properties may require renovation and repairs that can cost more than the house price itself.
Beyond the cost of purchasing a home, homeowners will likely have other expenses related to owning and maintaining the property.
Also, many homeowners prefer to do significant upgrades to the home before moving in, which comes at an additional expense.
These can include ordinary expenses such as painting, taking care of a lawn, fixing appliances, and cleaning living spaces, which can add up.
Additionally, it’s advisable to buy a home that falls in the middle of your price range to ensure you have some extra money for unexpected costs, such as repairs and maintenance.
8. HOA or Homeowners Association Maintenance
This is often an overlooked factor by many new homebuyers, but extremely important as some HOAs add $500-800 per month to the total housing budget.
The purpose of a homeowners association (HOA) is to establish a set of rules and regulations for residents to follow as well as maintain the community or building.
These fees are typically used to pay for maintenance, amenities, landscaping, and concierge services.
HOA fees are used to finance community upkeep, including landscaping and joint space development, and can range from $100 to over $1,000 per month, depending on the amenities in the association.
9. Utility bills
When switching from renting to buying a home, you will have to factor in the costs of your monthly utility bills such as electricity, natural gas, water, garbage and recycling, cable TV, internet, and cell phone when calculating how much mortgage you can afford.
In addition, the larger the home, the higher the costs to heat and cool your new home.
Make sure to ask your realtor for previous utility bills on the property you are interested in.
10. Private Mortgage Insurance
The purpose of private mortgage insurance (PMI) is to protect the lender in the event of foreclosure. It is typically required when a borrower is unable to make a 20% down payment on a home purchase.
PMI allows borrowers to purchase a home with less upfront capital, but also comes with additional monthly costs that are added to the mortgage payment. These fees range from 0.5% to 2.5% of the loan’s value annually and are based on the amount of money put down.
PMI can also be canceled or refinanced once the borrower has achieved 20% equity in the home or when the outstanding loan amount reaches 80% of the home’s purchase price.
11. Moving costs
Moving is expensive, but also a pain to do. So, consider the moving costs associated with relocating from one location to another.
Typically fees for packing, transportation, and possibly storage, and can vary depending on the size of the move and the distance the move needs to cover.
Also, consider if by buying a home, you will stop having moving costs associated with moving from rental to rental.
FAQ
When determining how much house you can afford, it’s important to consider several factors.
These include your income, existing debts, interest rates, credit history, credit score, monthly debt, monthly expenses, utilities, groceries, down payment, loan options (such as FHA or VA loans), and location (which affects the interest rate and property tax). Also, think about the costs of maintaining or renovating a home.
Additionally, you should also evaluate your own budget and assess whether now is the right time to purchase a home. Taking all of these factors into account can help you set the maximum limit on what you can realistically afford.
A mortgage calculator can help you determine your home affordability by providing an estimate of the home price you can afford based on your income, debt profile, and down payment.
It works by inputting your annual income and estimated mortgage rate, which then calculates the maximum amount of money you’re able to spend on a house and the expected monthly payment.
Additionally, different methods are available to factor in your debt-to-income ratio or your proposed housing budget, allowing you to get a more accurate estimate of your home buying budget.
The debt-to-income ratio or DTI is used by lenders to assess a borrower’s ability to make mortgage payments.
This ratio is calculated by taking the total of all of a borrower’s monthly recurring debts (including mortgage payments) and dividing it by the borrower’s monthly pre-tax household income.
A high DTI ratio indicates that the borrower’s debt is high relative to income, and could reduce the amount of loan they are qualified to receive.
Generally, lenders prefer a DTI of 36% or less, which allows borrowers to qualify for better interest rates on their mortgages.
To calculate their DTI, borrowers should include debt such as credit card payments, car loans, student and other loans, along with housing expenses. It is important to note that the DTI does not include other monthly expenses such as groceries, gas, or current rent payments.
Closing costs can have an enormous impact on how much home you’re able to afford.
From application fees and down payments to attorney costs and credit report fees, these costs can add up quickly and affect your overall budget. Unfortunately, most of these closing costs are non-negotiable, but you can ask the seller to pay them.
When buying a house, it is important to research the different mortgage options available to you.
You can typically choose between a conventional loan that is guaranteed by a private lender or banking institution, or a government-backed loan. Depending on your monthly payment and down payment availability, you may be able to select between a 15-year or a 30-year loan.
A conventional loan typically offers better interest rates and payment flexibility.
While a government-backed loan may be more lenient with its credit and down payment requirements.
For veterans or first-time home buyers, there may be special mortgage options available to them.
Ultimately, it is important to talk to a lender to see which loan type is best for your personal circumstances.
When it comes to saving for a down payment, it’s important to understand how much you’ll need and how much it will affect your budget.
Generally, you’ll need 20% of the cost of the home for a conventional mortgage and 25% for an investment property. When you put down more money, it gives you more buying power and may help you negotiate a lower interest rate.
For example, if you’re buying a $300,000 house, you’ll need a down payment of $60,000 for a conventional mortgage. On the other hand, if you put down 10%, you can still afford a $395,557 house. But, you will have to pay for private mortgage insurance.
In addition, there are other ways to help you cover these upfront costs. You can look into down payment assistance programs.
Ultimately, the size of your down payment will depend on your budget and financial goals. You should never deplete your savings account just to make a larger down payment. It’s important to factor in emergency funds and other expenses when deciding on the best option.
Eligibility requirements for loan lenders can vary, but in general, lenders are looking for borrowers with a good credit score, a reliable income, and a history of employment or income stability.
For most loan types, borrowers will need to show a history of two consecutive years of employment in order to qualify. However, lenders may be more flexible if the borrower is just beginning their career or if they are self-employed and do not have W2 forms and official pay stubs.
Income verification also needs to be done “on paper”, meaning that cash tips that do not appear on pay stubs or W2s can not be used as income. The lender will look at the household’s average pre-tax income over a two-year period before determining the amount that can be borrowed.
In order to make sure that the borrower is financially secure, lenders will also pull the borrower’s credit report and base their pre-approval on the credit score and debt-to-income ratio. Employment verification may also be done.
For certain government-backed loan types, such as FHA, VA, and USDA loans, there may be additional or different requirements for eligibility. For instance, for FHA loans, the borrower must intend to use the home as a primary residence and live in it within two months after closing. VA loans are more lenient, and may not require a down payment.
The qualifications for VA loans vary based on the period and amount of time the borrower has served. There are many ways to qualify, whether the borrower is a veteran, active duty service member, reservist, or member of the National Guard. For more information on eligibility requirements for VA loans, borrowers can visit the U.S. Department of Veteran Affairs.
A good credit score will mean you have access to more lending options, better interest rates, and more purchasing power.
On the other hand, a poor credit score could mean you are approved for a loan, but at a higher interest rate and with a smaller house.
This means your budget will be more limited and you may not be able to buy as much home as you had hoped for. Additionally, lenders will also look at other factors, such as your debt-to-income ratio, employment history, and loan term, in order to determine your overall affordability.
What House Can I Afford on 70k a year?
As a borrower, you need to consider the interest rate, down payment, credit score, debt-to-income ratio, employment history, and loan term when determining how much house you can afford.
A higher credit score can often mean a lower interest rate, and a larger down payment can bring down the monthly payments.
All of these factors can have an effect on the amount of money you can borrow and the home you can afford.
Ultimately, understanding the impact of different factors can help borrowers make the best decisions when it comes to getting a mortgage.
Now that you know how much house you can afford, it’s time to start saving for a down payment.
The sooner you start saving, the sooner you’ll be able to move into your dream home. But you may have to wait if you are considering a mansion.
By taking into consideration this guide into account, you can make a more informed decision about the cost of a mortgage for your new home.
Know someone else that needs this, too? Then, please share!!
Do you want to learn how to sell educational printables?
Lisa Fink was a teacher for 15 years but left the classroom to work on her educational printables business.
After just two years, she hit a six figure income. She now earns over $400,000 per year with her business, and she has sold over $1,000,000 in printables altogether.
You can start creating educational printables to sell and make money all from your home – and never have to ship a thing.
Creating educational printables can be a great way to make extra money because you just need to create them once, and you can sell them an unlimited amount of times.
Today, I have a fun interview to share with you. I interviewed Lisa, on how to sell educational printables.
Are you wondering questions such as:
What is an educational printable?
Why do teachers and parents buy printables?
How much money can a person earn by selling educational printables?
Do you have to be a teacher in order to sell educational printables?
Can someone with no tech skills make a printable?
Today’s interview will help you get started and perhaps even introduce you to a new way to make extra income.
Related content:
How to sell educational printables
1. Please give us a little background on yourself and how you got started. How much have you earned from your educational printables business?
Selling printable educational escape rooms on ThinkTankTeacher.com sort of came by accident. My husband and I bought a new house in August of 2017 but just one month later, he lost his job of 21 years in the corporate world due to downsizing.
As the sole provider, I began to worry about what the future was going to look like. How could we afford to pay our bills solely on a teacher’s income? We ALL know teachers are undervalued and underpaid, so this was a relevant struggle.
It was during this turbulent time that I decided to create ThinkTankTeacher.com as well as open a storefront on an educational platform called Teachers Pay Teachers. I needed to bring in extra income to pay the bills and this side-hustle thing was just what we needed. Although I was putting in 20-30 hours of work per week ON TOP of my full-time teaching job, but the future was getting brighter. We had hope.
My goal was to simply make a few hundred dollars a month, which at the time, I thought was quite unrealistic. Everything changed when it was just three months in, and I was already pulling in four figure months. At just six months, I was consistently earning five figures per month.
The point of my story is that it seemed as if life sent me some gray clouds, but they came with a silver lining. I was able to get my educational printables in classrooms all over the world. I fell in love with creating products and I never looked back. My life has been drastically transformed in the best way possible.
To date, I have earned well over $1,000,000 with printables. (It honestly still blows my mind to say that!)
2. What is an educational printable?
An educational printable is a quick, no prep activity that teachers can download instantly to complement their lesson plans.
Far too often textbooks lack creativity, do not foster student-centered learning, and quite frankly are downright boring.
The mission of Think Tank Teacher is to provide no-prep, engagement-boosting classroom activities to re-fuel the energy in a classroom with creativity and collaboration.
3. Who buys your educational printables?
My printables have been downloaded over 250,000 times by teachers, homeschool parents, and party planners looking to add a twist of fun to their kid’s party.
Often times teachers are seeking a last-minute activity that goes beyond the textbook, enhances the learning experience, and adds an element of puzzle decoding.
4. Why do teachers buy printables?
Teachers are always seeking something to help them differentiate in the classroom or supplement boring textbooks.
A teacher’s planning time is precious (and hard to come by) so a quick print and go lesson can make an enormous difference in their curriculum. Teachers spend far too much time outside of school hours prepping and planning, taking time away from things they love to do or people they love to spend time with.
Access to a pre-made, ready to use printable allows teachers to stop working at the bell and spend more time with their family.
Here’s an example of an educational printable.
5. What are some examples of what you sell?
From printable escape rooms, color by number, and scavenger hunts to digital secret message activities and virtual tours, I have something that meets the needs of all learning styles.
By far, my best-seller is the United States Constitution printable escape room.
Each resource I create incorporates a twist of fun to engage even the most reluctant learners. The key to a successful lesson is to pass the teaching reins off to the students and let them develop their own questions to think critically about the topic at hand.
6. What do you like about selling educational printables?
It warms my heart to know that my resources are kid tested and teacher approved, by hundreds of thousands of teachers, making an impact one classroom at a time.
The best part? The income is passive.
Once I upload a resource, the internet does the rest of the work. One single lesson can sell over and over again. There are no boxes to pack or ship, no inventory to track, and incredibly low overhead spending.
I have also added a membership model to my website making lesson plans easily accessible and less expensive for teachers.
7. How much money can a person earn by selling educational printables?
I have had a remarkable journey selling over $1,000,000 in printables.
Is it easy? No!
You have to put in blood, sweat and tears, but like anything else, the effort pays off in the long run. Since my educational business was so successful, I decided to get my brother Ben involved in a new venture last year. By this time, I felt like I had a good grasp on what I was doing in the educational online space.
Together, we opened Think Tank Escape Rooms on Etsy and have already made over $60,000 dollars. We took a different route and decided to focus our Esty shop on printable party games to entertain the kids and transform the house into an unforgettable code-breaking adventure! There is a high demand right now for printables, educational or not.
Despite my success story, my goals are high because there are other teacher authors making three times more than me. It IS possible! Reading success stories of fellow teacher authors was all the motivation I needed to dive in headfirst. Their accomplishments fueled my desire to become an entrepreneur.
8. Is there enough room for teachers to get started selling educational printables? Or, is the market saturated?
Absolutely, there is enough room for everyone!
Anyone who goes into the experience thinking the market is oversaturated has the wrong mindset. You have to adjust your mindset and find creative ways to make your idea unique, and to make it stand out amongst the thousands of others.
9. Do you have to be a teacher in order to start doing this?
You do not have to be a teacher to sell printables!
Though my college degree and teaching experience played a vital role in my success, this is a journey that homeschool moms or even corporate individuals can take advantage of.
You just need one idea to get you started.
10. How does a teacher come up with new ideas for printables?
This is probably the toughest part. The key is to find something you are passionate about and jump in. You want your resource to stand out.
You want apathetic learners to actively take part in the learning experience.
My mind is always running rampant with innovative ideas, improvements, and business proposals for both my website and Etsy shop.
I keep a notebook on my nightstand and jot down quick ideas. Some of them come to fruition and some of them do not.
11. Can someone with no tech skills make a printable?
There is some tech involved, but no difficult programs to learn.
Most creators use PowerPoint or Canva to create their printables. Of course, you have to know or learn how to upload the product, make catchy covers and enticing thumbnails but it is all refined to a skill over time.
When my brother jumped on board, he had never used PowerPoint or Canva and year later he’s a pro!
12. What is Teachers Pay Teachers? How does it work?
Teachers Pay Teachers is an online educational marketplace with millions of pre-made lessons.
Teachers seeking an activity can quickly jump on the website, search the topic they are covering in class, purchase and download an activity to use the very same day.
It is a lifesaver to many teachers, covering all subject areas in grades K-12.
13. Can you list the steps needed to get started selling educational printables?
First, you would need to either start your own website, open an Etsy shop, or open a Teachers Pay Teachers seller account.
Next, create an engaging printable.
After you create the activity, the fun’s not over! You have to create a preview of the product to give people a sense of what’s included, a cover page that screams “click on me” as well as thumbnails that give an overview of the activity.
When all of that is complete, you’ll need a title and product description, rich in keywords for SEO purposes.
Then voila, press publish, and your activity is live and ready for purchase.
It may sound overwhelming, but once the process is completed your products sell in perpetuity. Then, the process gets easier and quicker the next time around.
14. What other tips do you have to share?
In a world of millions of digital downloads, the motto “if you build it, they will come” simply does not apply. There is so much to do to get eyes on your product.
My top organic traffic driver is email marketing. In fact, email marketing has the highest return on investment of any online marketing platform. The goal is to turn store browsers into loyal customers, and I have created a course just for TPT sellers to do exactly that.
Within my first few months, I grew my email list by the thousands, and the next year I quit my teaching job to run my businesses full time from home.
By year two of selling my printables, I was already making multi six-figures.
What is the number one thing that allowed me this amazing opportunity? My email list. Hands down, if you do email marketing correctly, you will turn your list into raving fans, maximize the exposure of your products, and see outstanding results at the push of the ‘send’ button.
Quick note from Making Sense of Cents: There is a resource coming out soon on how to create printable escape rooms to sell online. You can sign up for the waitlist here.
Are you interested in learning how to sell educational printables?
Going on an African safari can be the chance of a lifetime to see some of the world’s most iconic wildlife up close, experience Earth’s extraordinary untouched corners, learn about new cultures and reconnect with nature.
A safari trip can also be the opportunity to make sustainable, responsible choices about how and where you travel, and to maximize the impact your travel spending has on conservation, community and environmental programs in various destinations.
Many travelers decide where to go on safari in Africa based on their schedules and the seasonality in individual regions — both in terms of the weather and the animals they will most likely see. Others focus on sighting specific species, resulting in visits to places like Rwanda or Uganda to trek and see mountain gorillas or trips to destinations like Kenya to observe the endangered pachyderms at a rhino sanctuary.
Sustainability can be another excellent factor in determining where you should go on safari, though. Many of the most reputable safari outfitters and camps put sustainability front and center in their operations, combining environmental practices, conservation commitments and community outreach to create the ultimate holistic travel experience.
Doing a little research on the regions you are considering for a safari and the specific tour operators and lodges in your chosen location can make a huge difference in the effect your tourism dollars have on things like wildlife preservation campaigns, economic development in local villages and minimizing the overall environmental footprint of your individual journey.
Unlike some other forms of travel that let you book certain components — flights, hotels, cruises, etc. — a la carte by yourself, many safari companies require you to book the bulk of your trip (if not all of it) through them or a partner agency or operator. Because of this, you can ask these representatives about their sustainability track records and even specific programs while planning your trip. Any reliable operator should have materials on hand to send you to help you make your decision.
Here are some of the factors you can investigate to determine just how sustainable your safari can be, plus some of the safari companies undertaking meaningful measures in this sphere by weaving principles of environmental consciousness, wildlife protection and community development into their core ethos and operations.
Eco-sensitive camps
For North American and European travelers, going on an African safari typically necessitates carbon-intensive long-haul flights and sometimes additional bush flights to reach remote regions. In order to limit the rest of your carbon footprint while on safari, look into the eco-credentials of the camps or outfitters you are considering.
Many safari camps, for instance, now run mostly or even entirely on solar power. At both andBeyond Nxabega and andBeyond Xaranna in Botswana’s Okavango Delta, 80% of the camps’ total electricity consumption is supplied by solar photovoltaic plants and Tesla Powerpack battery energy storage systems.
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Nearby, Wilderness’ Chitabe and Mombo camps run on 100% solar (as do 17 of the company’s other camps), and Wilderness has plans to retrofit and invest in further solar power for all new camps and camp refurbishments. Not only is that great for the environment, but it’s also the best means of ensuring an uninterrupted power supply to guests in an area with little other infrastructure.
Cheetah Plains, an exclusive-use safari villa in South Africa’s Sabi Sand Nature Reserve, now uses Toyota Land Cruiser electric safari vehicles with Tesla batteries that are charged via solar power to whisk guests across the reserve’s thousands of acres, creating a zero-emission game drive.
In Tanzania’s Ruaha National Park, Usangu Expedition Camp is steering a different path, developing safari vehicles that run on ethanol, which is derived from molasses produced in the southern part of the country, instead of diesel. The staff even calls the vehicles “Gongos,” a type of traditional Tanzanian gin, since the ethanol looks and smells like the spirit.
But alternative power and fuel are just the start. For its part, Chitabe recycled the wood from an old set of raised walkways to create a chic bar and lounge area for its current guests. What’s old is new again … and looking better than ever.
Many recently built and forthcoming safari camps are being constructed using both traditional materials and techniques, such as thatching and weaving completed by local artisans, and up-to-the-minute technologies like 3D printing and innovative recycling methods utilizing salvaged materials to limit their physical footprint.
Time + Tide Chinzombo in Zambia’s South Luangwa National Park was designed to be completely dismantled if necessary so as to leave a minimal trace on the landscape, and Wilderness is currently constructing a new tented camp in Botswana’s Mbabe concession called Mokete that can be completely disassembled as if it had never been there.
Simple measures can have a large impact as well. Camps like Wilderness’ DumaTau and sister Little DumaTau in Botswana’s riverine Linyanti region provide guests with Healing Earth’s all-natural, biodegradable bath and body products during their stay to minimize harmful runoff from the camp’s water management system.
For its part, the Elewana Collection of lodges in Kenya and Tanzania launched its “Ban the bottle” initiative in 2018, giving guests reusable water bottles that they can fill up at stations in the camps. The outfitter estimates that doing so in just six of its Kenyan lodges saves around 160,000 plastic bottles from going into landfills each year.
Elewana also dropped plastic straws the following year. Even more fun for Elewana guests is the opportunity to toss out seed balls (little nutrient packs that encase seeds of Indigenous plants) during a walk or game drive somewhere along their journey so they’re doing their little part to help revegetate the wild places they are enjoying.
Wildlife conservation
It seems obvious, but without wildlife, there wouldn’t be safari camps. For that reason, many safari companies actively support and participate in wildlife conservation efforts, some of which are specific to individual regions while others are more widespread.
Guests at andBeyond’s Tengile River Lodge and Kirkman’s Kamp, which are near each other in South Africa’s Sabi Sand Nature Reserve, can certainly get a thrill sighting the area’s thriving lion and leopard populations on game drives. However, guests may not know that their guides are also logging those sightings and providing the information to Panthera, an organization dedicated to tracking and protecting big cat populations around the world.
Various other andBeyond camps, including Phinda Private Game Reserve and Ngala Safari Lodge, help fund rhinoceros anti-poaching units. Guests at Ngala can even observe researchers tagging rhinos’ ears with microchips to help monitor the highly endangered animals. These are individual initiatives, but they are all part of andBeyond’s overarching commitment to conservation and community projects that it supports through its Africa Foundation.
Likewise, Elewana Collection has a charitable arm called The Land & Life Foundation that underwrites various efforts such as the Wildlife Warrior Program, which has clubs in primary schools throughout Kenya and Tanzania. The children who join can take part in activities to learn more about environmental and animal conservation. The club currently counts around 2,200 members and even provides primary and secondary educational scholarships to many of them.
High-end safari company Singita, which has lodges in South Africa, Zimbabwe, Tanzania and Rwanda, established its Singita Conservation Foundation decades ago with a 100-year plan to protect Africa’s wildlife and wilderness for future generations. These days, it partners with other nonprofit trusts and funds on a plethora of projects, including rhino reintroduction and protection in the Malilangwe Wildlife Reserve in Zimbabwe, land management and anti-poaching efforts in South Africa’s Kruger National Park and combating invasive vegetation as well as helping in the recovery of megafauna like elephants and buffaloes in Tanzania’s Serengeti National Park.
Community improvement projects
Without buy-in from local communities, conservation efforts would go nowhere. Those who live in or near game reserves and national parks need to benefit from the tourism revenue that these natural wonders generate. That’s why many safari companies’ conservation drives include community-based components.
One telltale sign that a safari company is supporting the communities where it operates in a meaningful way is simply through employment. Specifically, whether its camps employ people from the villages or regions that surround them in high proportions. Not only is this a boon for economic stability and growth in places that might otherwise be destitute, but it ensures that tourism dollars stay in the area and benefit the people who live there.
Many safari companies’ commitments to communities go beyond employment, though. Praveen Moman, who grew up in Uganda before his family had to emigrate to the United Kingdom, founded Volcanoes Safaris in 1997, pioneering the high-end safari experience in both Uganda and Rwanda.
While the Volcanoes Safaris’ lodges have become mainstays for both gorilla and chimpanzee trekking, it is perhaps the company’s nonprofit organization, the Volcanoes Safaris Partnership Trust, that will be its most lasting legacy. The trust supports preservation efforts for the great apes of the region, but it also underwrites innovative, community-based programs that guests are encouraged to explore during their stays at the lodges.
“When I set up Volcanoes Safaris in 1997 in southern Uganda and then in 2000 in neighboring Rwanda, the area was just coming out of the Great Lakes conflict,” Moman told TPG via email. “This experience made me realize how important it was to not only focus on the lodges we were building and the gorilla and chimpanzee experience that we wanted our guests to enjoy, but also that local people need to get tangible economic benefits from conservation and ecotourism for them to support the great apes.”
“Therefore,” he continued, “I felt that it was important that the lodges should be connected to the communities around them. In each lodge, we have set up different community projects.”
At Volcanoes Safaris’ Virunga Lodge in Rwanda, for instance, guests can take a guided afternoon walk through several villages near Lake Bulera to see firsthand the impact of projects such as the “One sheep per family” program, which provides one sheep to each family in three nearby villages (more than 500 so far), thereby supplying them with sources of meat and milk along with natural fertilizer for their sustenance crops.
The lodge has also donated 250-plus water tanks to families in these villages, which help in the catchment of the region’s abundant rainfall and ensure that there is a steady supply of water for drinking and crop irrigation during the dry season.
In Livingstone, Zambia, near Victoria Falls, Tongabezi, which is an elegant lodge along the banks of a tranquil stretch of the Zambezi River, has underwritten the Tongabezi Trust School (also known as Tujatane) since 1996, providing education and meals to children who live within walking distance of the academy. There are currently nearly 300 children between the ages of 3 and 17 enrolled, all of whom can take advantage of the classes and curriculum, as well as the music, sports, arts and computer facilities. What’s more, the school provides funding to send some of the children on to secondary schools and even universities, ensuring a new generation of leaders and professionals with a commitment to the local community.
In Botswana, both andBeyond Nxabega and andBeyond Xaranna share several community-based projects, including the drilling of water boreholes for the communities of Gogomaga and Tsutsubega so that their inhabitants have steady sources of usable water; and funding a school in the rural farming village of Sexaxa near Maun (where the area’s main airport is) so children no longer need to walk three hours, some of it through dangerous terrain, to attend the nearest school.
Longer-term development
Ongoing outreach and individual community projects aside, several safari companies have established philanthropic organizations or arms with a broader purview of economic development and social services not just in the areas where they operate, but in entire countries or regions.
Micato Safaris is one of the best-known luxury safari operators, partnering with premier lodges from multiple companies in Africa and Asia to create bespoke itineraries for its guests. However, it also underwrites AmericaShare, which was founded by a Micato Safaris employee named Lorna Macleod more than 35 years ago to support both community development and access to education in Mukuru, one the largest informal settlements in Nairobi, Kenya.
Today, the philanthropy operates the Harambee Community Centre, which has library and computer facilities as well as recreational grounds, in Mukuru itself. Residents can come for a quiet place to study or work, look for employment and take advantage of other services. AmericaShare also supplies fresh, drinkable water in the area via multiple distribution points.
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Students hard at work at AmericaShare’s Harambee Community Centre. ERIC ROSEN/THE POINTS GUY
Guests who go on safari with Micato in Kenya get to visit the community center to learn more about its efforts and meet students who have benefited from AmericaShare’s various educational undertakings during their stay. Those include supplying school uniforms to local children, sponsoring scholarships to primary and secondary schools, and sending some of the most vulnerable children to private boarding schools around Nairobi. In fact, for every safari the company sells, Micato provides the funds to send a child to primary school.
Micato also supports other efforts like Huru International, which supplies sanitary kits and reproductive health education materials to young women (more than 210,000 to date) throughout East Africa who might otherwise have to miss school or work due to the lack of reproductive health services in rural communities. By empowering women to take their health into their own hands, Huru helps them support their families and communities (not to mention cultivating their own careers) in ways that would not otherwise be possible.
For its part, one of the most targeted yet impactful ways Wilderness carries out its conservation mission beyond the day-to-day and lodge-specific measures it takes is through its Children in the Wilderness program, which was founded in 2001.
The program aims to cultivate new generations of homegrown conservation leaders in Africa’s rural communities by hosting student clubs at schools with activities that focus on environmental sustainability and wildlife education. Children in the Wilderness even brings kids to one of its camps on a yearly basis (7,800 to date) so they can learn firsthand about the importance of wildlife conservation. The program provides scholarships to high-achieving students, and some even return to become guides with Wilderness.
On a recent trip to Botswana, my guide at Little DumaTau, Segopotso Oja (See for short), was a former participant of Children in the Wilderness. “I was born and raised in a small village called Eretsha, located in the eastern Okavango Panhandle,” Oja told me later by email when I contacted him after my trip to ask more about his experience with Children in the Wilderness.
“Wilderness works closely with the community in this area, and when I was 10 years old, I was given the opportunity to join a Children in the Wilderness Eco-Camp,” Oja continued. “Here I grew to learn about and love the wild, and recognize the importance of protecting our wilderness, and this experience inspired me to pursue a career as a guide.”
Spending time in the bush helps combat some of the negative portrayals of wild animals that village children are typically taught, Oja told me. “Once they explore the wilderness, this opens their minds and changes their way of thinking to realize the value of conservation and that there are other career opportunities available to them in the conservation and hospitality space.”
That’s the path that Oja himself took. He has since worked as a guide not only at Little DumaTau, but also two other Wilderness camps, Vumbura Plains and Mombo.
Oja also views his continuing role as an ambassador for Children in the Wilderness as crucial to the work he does and the future of conservation. “It gives me a chance to meet with youngsters when we host them in our camps,” Oja said, “and pass over the love of being a conservationist to the younger generation.”
Minimize your footprint and maximize your impact
Aside from picking a safari company with sustainability efforts you want to support, there are a few things you can do as a traveler to make your safari adventure more sustainable.
Long flights produce a lot of carbon, so you could consider a carbon offsetting scheme to reduce the footprint from your journey to your safari destination.
Don’t overpack since bush flights on small planes mean your luggage will be restricted anyway. What’s more, many safari camps provide free daily laundry, so you don’t have to bring too many outfits along. Plus, by limiting your luggage, you’ll reduce the amount of fuel burned on the planes carrying you to your various camps.
Among those clothes, make sure you bring some made from fabric with sun protection factor. That will reduce the amount of plastic-packaged sunblock you need to bring along. Opt for mineral-based sunscreens (look for those labeled as “reef-safe”) rather than conventional ones since the latter have chemicals that might be harmful to the environment as well as your own body chemistry, according to an increasing body of scientific evidence.
You might also want to leave your usual shampoo and conditioner at home since safari camps tend to provide eco-friendly, biodegradable products that are easier to manage waste-wise in the fragile ecosystems where they operate.
Finally, while safaris tend to be expensive, think about whether you can factor in a charitable donation to your budget. After all, if you’ve done your homework and picked a company with sustainability efforts you support, you might want to do just a little bit more good during your trip by making an unrestricted donation to the measures the group has underway.
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At a glance
BANKRATE AWARDS 2023 WINNER
Best auto insurance company overall (tie)
See why it won
4.4
Rating: 4.4 stars out of 5
Bankrate Score
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Auto
Rating: 4.4 stars out of 5
4.4
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Cost & ratings
Rating: 4.6 stars out of 5
4.6
Coverage
Rating: 4 stars out of 5
4.0
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Rating: 4.7 stars out of 5
4.7
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Rating: 0 stars out of 5
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About Bankrate Score
Bottom Line
Policyholders who value cheaper car insurance and digital capabilities over bundling multiple insurance policies with the same company might consider Geico as their company of choice.
Low average premiums for high-risk drivers
Robust online and mobile app accessibility
Multi-policy discounts available
Avg. annual auto insurance premium for full coverage: $1,353
Avg. annual auto insurance premium for min coverage: $373
Avg. annual home insurance premium for $250k dwelling coverage: $
Customer service: 1-800-207-7847
Claims: Claims can be filed and managed online through Geico’s website or mobile app, or by calling its toll-free claim number at 1-800-841-3000. For a comprehensive list of claims numbers, please visit the company’s claims reporting page.
Emergency roadside assistance: This can be done online through Geico’s website or mobile app, or by calling 1-800-424-3426.
Answer a few questions to see personalized rates from top carriers
Geico car insurance
Geico car insurance received a Bankrate Score of 4.4 out of 5 points. To determine this Score, our insurance editorial team reviewed Geico’s average premiums, coverage options, discounts, customer satisfaction, financial strength and digital insurance features. The better a company performed in each of these categories, the higher its overall Bankrate Score.
Along with its high Bankrate Score, Geico was also named one of this year’s best car insurance companies overall, as well as the best budget car insurance company in the 2023 Bankrate Awards. Thanks in part to its overall lower-than-average premiums and plentiful discount opportunities, Geico may be a good choice for drivers looking for a cheap premium. Average Geico car insurance rates are also significantly cheaper than the national average when adding a young driver to the policy.
Bankrate Award winner for best auto insurance company overall and best budget auto insurance company
Bankrate’s insurance editorial team has decades of combined industry experience, and we use our expertise to uncover the best insurance companies through our annual Bankrate Awards.
Our goal is to give consumers an easy way to find a company that fits their unique circumstances. Based on our extensive research, we’ve recognized Geico as a 2023 Bankrate Award winner for the best overall auto insurance company and the best budget auto insurance company.
Why Geico won
Geico offers below-average auto insurance rates as well as a solid mix of coverage options, discounts and digital tools. These factors, combined with customer satisfaction and financial strength scores, earned Geico Bankrate Awards for best overall auto insurance company and best budget auto insurance company.
To choose the best overall auto insurance company, we started by gathering information from over 150 insurance companies. We researched average quoted annual premiums obtained from Quadrant Information Services for all 50 states and Washington, D.C., because we know that price is a top concern for many shoppers. We also know that service and financial strength are important, so we also evaluated third-party scores and ratings from J.D. Power, the National Association of Insurance Commissioners (NAIC), AM Best, Standard & Poor’s (S&P) and Moody’s. To ensure that we chose companies that offer the coverage that drivers need, we next reviewed available coverage options and discounts. Finally, we considered each company’s local agency presence, digital tool functionality, corporate sustainability and national availability (which we define as being available in at least 48 states, since Alaska and Hawaii often present unique challenges to insurers). While our Bankrate Awards can serve as a helpful guide, keep in mind that each insurance company has its own underwriting and pricing regulations, which means eligibility and rates will vary. We chose to feature two companies, Amica and Geico, as the best overall to help a wider range of drivers.
Price was the most important factor as we looked for the best budget auto insurance company. We obtained average quoted premiums from Quadrant Information Services for all 50 states and Washington, D.C., then analyzed the rates by a number of driver profiles. We weighed the national average rate most heavily in our analysis, but also considered coverage options, discounts, third-party scores and digital tools. Geico consistently offers low average rates and has a long list of discounts that could lower premiums even more.
Geico car insurance is available in all 50 states and Washington, D.C. Its coverage options are generally standard, and it does not have as many optional add-ons as some other car insurance carriers. The only additional options listed on Geico’s website are emergency roadside service, rental reimbursement and mechanical breakdown insurance.
Pros and cons of Geico car insurance
If you’re comparing auto insurance rates, considering Geico’s pros and cons might help you in your decision.
PROS
Checkmark
Average rates are lower than the national average
Checkmark
Average rates for drivers with an at-fault accident or moving violation on their record may be more affordable than competitors
Checkmark
Robust digital tools for online policy management
CONS
Close X
May have limited local agencies for those who want in-person support
Close X
Fewer optional coverage add-ons than competitors
Close X
Mobile app is highly-rated in the app store, but the company scored below the segment average for service in the J.D. Power U.S. Insurance Digital Experience Study
Geico car insurance cost
Based on Bankrate’s study of rate data from Quadrant Information Services, Geico is one of the cheapest car insurance companies. Its 2023 average cost of car insurance is $1,353 per year for full coverage and $373 per year for minimum coverage. This is notably lower than the 2023 national average cost of car insurance at $2,014 per year for full coverage.
Geico car insurance rates by driving history
Car insurance companies may weigh driving records heavily when it comes to calculating car insurance rates. An at-fault accident or moving conviction, such as a speeding ticket or DUI, could make your car insurance more expensive compared to a driver with no accidents or tickets on their record. Below is a comparison of rates for drivers with different driving histories. A DUI conviction has been excluded as some insurance carriers may not accept drivers with a DUI.
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Geico average monthly full coverage premium
Geico average annual full coverage premium
National average annual full coverage premium
Clean driving history
$113
$1,353
$2,014
Speeding ticket conviction
$138
$1,658
$2,427
At-fault accident
$166
$1,988
$2,854
Geico average monthly minimum coverage premium
Geico average annual minimum coverage premium
National average annual minimum coverage premium
Clean driving history
$31
$373
$622
Speeding ticket conviction
$38
$455
$748
At-fault accident
$46
$551
$892
Geico car insurance quotes by age
The age of a driver and the years of driving experience they’ve accumulated may also play an important role in determining car insurance rates. Young drivers and those who are newly licensed typically pay more for car insurance than drivers with more years of experience behind the wheel. Average insurance rates by age show that auto insurance premiums do tend to decrease over time until your 60s, but you may be able to find the best car insurance rate at any age by compiling car insurance quotes.
Below are comparisons that show young drivers both on and off their parents’ policy, as well as how they compare to other age groups. All rates are for drivers with a clean driving record.
Average cost of car insurance for drivers on their parents’ policy
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Geico average monthly full coverage premium
Geico average annual full coverage premium
National average annual full coverage premium
Age 16
$248
$2,977
$4,392
Age 17
$229
$2,753
$4,102
Age 18
$210
$2,523
$3,837
Age 19
$184
$2,212
$3,345
Age 20
$171
$2,054
$3,149
Geico average monthly minimum coverage premium
Geico average annual minimum coverage premium
National average annual minimum coverage premium
Age 16
$74
$886
$1,470
Age 17
$68
$811
$1,362
Age 18
$61
$733
$1,261
Age 19
$53
$633
$1,070
Age 20
$48
$580
$995
Average cost of car insurance for drivers on their own policy
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Geico average monthly full coverage premium
Geico average annual full coverage premium
National average annual full coverage premium
Age 18
$337
$4,048
$6,110
Age 25
$132
$1,584
$2,473
Age 30
$116
$1,389
$2,125
Age 40
$113
$1,353
$2,014
Age 60
$105
$1,264
$1,824
Geico average monthly minimum coverage premium
Geico average annual minimum coverage premium
National average annual minimum coverage premium
Age 18
$98
$1,175
$1,967
Age 25
$36
$432
$747
Age 30
$32
$379
$647
Age 40
$31
$373
$622
Age 60
$29
$352
$578
You may be eligible for a discount if you are a member or employee of a participating affiliate company or organization.
Both active duty and retired military policyholders, as well as members of the National Guard or Reserves, may save up to 15 percent on Geico auto insurance.
Geico provides up to 25 percent off car insurance for service members who experience an emergency deployment.
This usage-based telematics program tracks participating members’ driving habits and may offer premium discounts to safe drivers.
Geico may extend a discount to policyholders who insure multiple vehicles on the same policy.
Full-time students who maintain a strong academic record may receive a discount of up to 15 percent.
Geico car tools and benefits
Geico has partnered with TrueCar to create its Geico Car Buying Service. With this program, Geico policyholders can research their desired car’s market value and receive assistance from TrueCar’s Certified Dealers. After purchasing their vehicle, Geico members can use Geico Mobile’s Vehicle Care app, created through a partnership with CARFAX, to track their service history, access recall information and set maintenance reminders.
Drivers 50-years-old and older in certain states may qualify for policy renewal for life through Geico’s Prime Time contract. However, there are eligibility requirements. For example, there can be no drivers listed on the policy under the age of 25, no drivers on the policy can have received a violation or been involved in an accident in the past three years, and you can’t use your vehicle for business purposes. Still, this unique contract could provide peace of mind for those who are eligible.
Geico home insurance
Geico does not write its own home insurance policies, but it works with non-affiliated insurance companies to provide homeowners insurance quotes to interested customers. The policies are secured through GEICO Insurance Agency, LLC, and may require additional research to see if they offer the best homeowners insurance for your needs. Although coverage options and discounts may vary based on the partner company, Geico does advertise a bundling discount for auto insurance customers who add a property insurance policy through the carrier.
Geico life insurance
Similar to its home insurance policies, Geico life insurance is offered through partner companies.
Geico’s partnered life insurance offerings are available in three policy types: term life, whole life and universal life insurance. Term life insurance provides coverage for a specific amount of time, such as 10 or 30 years, and is typically used to replace lost income and cover future expenses if the policyholder passes away during the policy term. Customers may be able to obtain a term life insurance policy through Geico’s partner companies with no medical exam, but they will likely still have to fill out a health and lifestyle questionnaire.
Whole life insurance and universal life insurance are both types of permanent life insurance. These policies do not have a policy end date as long as policy terms are fulfilled. In addition to helping with income, permanent life insurance policies could also be an integral part of estate planning.
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Geico customer satisfaction
Bankrate analyzes a variety of metrics to evaluate an insurance company’s customer satisfaction, including third-party scores issued by J.D. Power. Every year, J.D. Power studies customer satisfaction, claims satisfaction and digital experience for various insurance companies across the country and issues them scores in each subject, with 1,000 being the highest score possible.
Our editorial team also considers the National Association of Insurance Commissioners (NAIC) complaint index. The NAIC keeps track of how many complaints are lodged against an insurance company and translates this data into a complaint index score. To understand this data, know the baseline (or average) amount of customer complaints is 1.0. A complaint index score higher than 1.0 means the company receives more complaints on average for its size and vice versa.
Geico auto satisfaction
Geico’s scores in the J.D. Power 2022 U.S. Auto Insurance Study vary depending on the region. Although it often scored above the segment average, it fell short in Texas and the Mid-Atlantic and Southeast regions. Additionally, it landed just above the industry average for claims satisfaction in the J.D. Power 2022 U.S. Auto Claims Satisfaction Study.
Geico’s full-service mobile app and online customer portals may be a big perk for tech-savvy shoppers. While it is true that the app is highly-rated on the App store and Google Play, the company fell under the segment average in the service category in the J.D. Power 2022 U.S. Insurance Digital Experience Study. Consumers may be more satisfied with Geico’s online sales flow as the company scored above average in the shopping category.
Regarding the NAIC complaint index, Geico has fewer complaints, on average, about its private passenger auto insurance for a company of its size, with a complaint index of 0.68. This index may indicate that Geico’s auto insurance policyholders are generally happy with the company’s service.
How to file a claim with Geico
Filing a claim with Geico can be done online through its website or the mobile app. Policyholders may also call the company’s claims line at 800-841-3000.
As Geico homeowners insurance is offered through partner companies, contact information for property claims may vary based on the company that writes your policy. A comprehensive list of property claims contact numbers can be found on Geico’s website.
Geico availability
Geico is available in all 50 states and Washington, D.C.
Other Geico perks worth considering
Auto insurance may be Geico’s most popular product, but customers can also access the following:
Travel insurance: Offered through Berkshire Hathaway Travel Protection, this insurance could help insure your travel costs including trip cancellations, lost or stolen travel documents or unplanned medical costs.
Jewelry insurance: Geico has partnered with Jewelers Mutual Insurance Group to help customers insure valuable and sentimental jewelry against theft, damage and loss.
Pet insurance: Caring for a pet can be a major expense, but pet insurance may help decrease some of the costs. Geico works with partner insurance carriers to provide coverage for most accidents, non-pre existing illnesses, dental care and more.
Geico corporate sustainability
Geico supports three main initiatives through the Geico Philanthropic Foundation: education, community engagement and equity, justice, diversity and inclusion. The Foundation has donated an average of $6-8 million annually to over 7,000 charities in the last twenty years. It encourages policyholders and the wider public to submit their 501(c)(3) non-profit organizations for donation consideration, provided that the non-profit meets Geico’s criteria. Nominations can be made from the start of the year to November 30.
Not sure if Geico is right for you?
If you’re still wondering if Geico could be a good fit for your insurance needs, you may want to consider requesting quotes from the companies below:
Geico vs. Esurance
As a fully digital insurance company, Esurance offers a robust digital app experience and may be another good option for those who want to manage their own policies. Its telematics DriveSense mobile app may allow Esurance customers and non-policyholders to earn rewards and discounts by tracking real-time driving habits and behaviors. However, Esurance does not advertise as many discounts as Geico and has higher average auto insurance premiums.
Learn more: Esurance Insurance review
Geico vs. Nationwide
Low-mileage drivers and those who want to build safe driving habits may appreciate Nationwide’s two telematics programs: SmartMiles and SmartRide. Nationwide could also be an option for those who want to bundle home and auto insurance with the same carrier, as the company writes its own homeowners insurance policies. Consumers should note that Nationwide did score below the industry average in J.D. Power’s auto claims satisfaction study.
Learn more: Nationwide Insurance review
Geico vs. Progressive
Progressive offers a long list of car insurance discounts as well as numerous home insurance discounts for those looking to save on both policy types. The company’s Name Your Price tool may also help customers take a price-first approach to their car insurance and find coverage that fits their budget. Progressive auto insurance is available in all 50 states, but homeowners insurance is not, so potential customers may want to verify availability when researching this carrier.
Learn more: Progressive Insurance review
Is Geico a good insurance company?
Bankrate’s insurance editorial staff includes three licensed agents, and we aim to share our intimate industry knowledge to help our readers choose the best insurance company that suits their needs. Insurance is complex, and we know that finding the right carrier isn’t always easy. That’s why we spend hundreds of hours each year conducting in-depth insurance company reviews.
Bankrate’s Geico insurance review also revealed that the company does not underwrite many insurance products other than car insurance. However, its partnerships with non-affiliated companies could allow customers to purchase most types of insurance including home, umbrella and life. Additional research may be required on these carriers to see if they’re the right fit.
Clock Wait
46
years of industry expertise
122
carriers reviewed
20.7K
ZIP codes examined
Dollar Coin
1.2M
quotes analyzed
Methodology
Auto
Bankrate utilizes Quadrant Information Services to analyze 2023 rates for ZIP codes and carriers in all 50 states and Washington, D.C. Rates are weighted based on the population density in each geographic region. Quoted rates are based on a 40-year-old male and female driver with a clean driving record, good credit and the following full coverage limits:
$100,000 bodily injury liability per person
$300,000 bodily injury liability per accident
$50,000 property damage liability per accident
$100,000 uninsured motorist bodily injury per person
$300,000 uninsured motorist bodily injury per accident
$500 collision deductible
$500 comprehensive deductible
To determine minimum coverage limits, Bankrate used minimum coverage that meets each state’s requirements. Our base profile drivers own a 2021 Toyota Camry, commute five days a week and drive 12,000 miles annually.
These are sample rates and should only be used for comparative purposes.
Age: Rates were calculated by evaluating our base profile with the ages 18-60 (base: 40 years) applied. Depending on age, drivers may be a renter or homeowner. Age is not a contributing rating factor in Hawaii and Massachusetts due to state regulations.
Incidents: Rates were calculated by evaluating our base profile with the following incidents applied: clean record (base), at-fault accident and single speeding ticket.
Bankrate Scores
Our 2023 Bankrate Score considers variables our insurance editorial team determined impacts policyholders’ experiences with an insurance company. These rating factors include a robust assessment of each company’s product availability, financial strength ratings, online capabilities and customer and claims support accessibility. Each factor was added to a category, and these categories were weighted in a tiered approach to analyze how companies perform in key customer-impacting categories.
Like our previous Bankrate Scores, each category was assigned a metric to determine performance, and the weighted sum adds up to a company’s total Bankrate Score — out of 5 points. This year, our 2023 scoring model provides a more comprehensive view, indicating when companies excel across several key areas and better highlighting where they fall short.
Tier 1 (Cost & ratings): To determine how well auto and home insurance companies satisfy these priorities, 2023 quoted premiums from Quadrant Information Services (if available), as well as any of the latest third-party agency ratings from J.D. Power, AM Best and the NAIC, were analyzed.
Tier 2 (Coverage & savings): We assessed companies’ coverage options and availability to help policyholders find a provider that balances cost with coverage. Additionally, we evaluated each company’s discount options listed on its website.
Tier 3 (Support): To encompass the many ways an auto insurance company can support policyholders, we analyzed avenues of customer accessibility along with community support. This analysis incorporated additional financial strength ratings from S&P and Moody’s and factored a company’s corporate sustainability efforts.
Tier scores are unweighted to show the company’s true score in each category out of a possible five points.
Half of Americans Won’t Be Able to Afford Their Standard of Living in Retirement: Here’s What You Can Do | SmartAsset.com
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Will you have to downsize in your retirement?
Many families plan to adjust their lifestyles in retirement. They swap the family house, say, for a smaller home. Or they move to a less expensive community. When this is a choice, it can be an excellent way to slow down and stretch the value of your portfolio.
Unfortunately, for many households, downsizing won’t just be an option. It will be a necessity.
That’s the result of a recent study published by Boston College’s Center for Retirement Research. The CRR researches the many different financial and lifestyle issues that surround modern retirement and publishes a statistic called the National Retirement Risk Index. This index measures how many households have less in retirement savings than they will need in the years ahead.
For hands-on help planning your retirement, consider matching for free with a vetted financial advisor.
What the CRR Study Says
The CRR’s findings are stark. Fully half of the nation’s working-age households will not have enough money to maintain their standard of living once in retirement. Making matters worse, this study assumes a strong working and saving life in which people work until age 65 and annuitize their assets, and even accounts for Social Security income.
Instead, according to the CRR’s findings, millions of households will have to cut back on both luxuries and necessities in order to survive. The specifics will range based on the needs of any given individual. In some cases, retirees won’t be able to enjoy some of the same things that made them happy in their working years. They might have to go out for dinner less often, for example, or they may no longer be able to travel.
For other people the situation will get more dire. In order to survive, retirees will have to sell valued assets like a family home or may have to skip necessities like food and medication.
The National Retirement Risk Index is based on the concept of income replacement. Essentially, how effectively can the proceeds of a retirement portfolio replace working income? It isn’t a one-to-one relationship, because, once retired, most households need less money to maintain the same standard of living on a day-to-day basis. You no longer have to save for retirement, for example. You typically pay less in taxes, no longer have dependents to support, have paid off the mortgage on your house and in general have fewer costs. For many households, the rule of thumb is that your retirement portfolio needs to replace 80% of your working income in order to maintain the same standard of living.
Yet half of all households will fall short of even that 80% mark by at least 10 points, the level at which the NRRI considers a household “at risk.”
Underprepared For Retirement – A Wider Trend
This is the latest survey to emphasize what financial experts have been warning of for years: There is a retirement crisis brewing in America.
Around the late 1970s and the early 1980s, the economy shifted from what is called “defined benefit” retirement planning to “defined contribution.” Instead of receiving a guaranteed pension from their employers, most workers were enrolled in the now-common 401(k) plans. This has system has struggled to keep up with workers’ needs, however, and in the decades since there has been a growing concern that households simply have not been able to save up the money they will need to pay for retirement.
The National Retirement Risk Index has found this consistently to be the case. Since 2004, it has found that about half of households surveyed do not have the money they will need to maintain their standard of living in retirement.
Previously, older generations were less at risk, as in 2004 many older households still reflected the more generous retirement plans and pay scales of a previous era. In the most recent publication, however, that difference has been erased. Now the NRRI finds equal risk across all age groups. The center has also found this broadly true across most income groups as well. Even across high-income households (defined as $85,000/$248,000 or more for single/married households), 41% of all households surveyed fall below their own replacement level of savings.
As to what policymakers can do to address this crisis, there are many proposed solutions. Yet arguably two of the biggest issues when it comes to addressing retirement shortfalls are time and money.
From the perspective of time, effective solutions will differ across various households. Policymakers may be able to help younger households through a series of employer- and tax-based options, helping people to get more income and to save up more in their retirement accounts during their working lives. This can be an effective solution for someone who has decades of growth left ahead of them. However this problem is equally stark for households that are just a few years away from retirement, and they likely do not have the time to catch up through savings and investment. Households approaching retirement are likely to founder without a simple plan to get them more money.
Which is the other problem. Ultimately, the retirement crisis is about money. Households need more of it, and it will have to come from somewhere. Whether the government spends this money directly through Social Security overhauls or whether an employer does so by reintroducing pensions or boosting benefits and pay, this comes down to somebody, somewhere cutting a check. Finding those funds remains one of the biggest problems when it comes to solving the retirement crisis.
That solution needs to come soon, however, because the Boston College findings are quite clear. For millions of Americans, retirement will not be something to look forward to. It will be an era of struggle and want.
But this does not have to be your own experience.
Saving for retirement is a massive project that should last for your entire career. Ideally, you can begin setting aside money as early as possible. Even just a small amount of savings in your 20s can add up to a significant nest egg by the time you reach your 60’s. If you have children, you can do the same for them. Making modest contributions to a portfolio that can grow over 60 years will be one of the best ways you can help young children get a head start on life. But no matter what age you’re at, it’s never too soon or too late to start.
Beyond that, the rule of thumb is 10%. Whenever possible, set aside 10% of your salary into retirement savings. If you have an employer with a matching 401(k), maximize that, followed by Roth IRA and Roth 401(k) accounts.
Don’t just rely on rules of thumb though. Use tools like our retirement calculator to reverse engineer your savings plan. Start with a sense of how much money you will need in retirement, then work backwards to figure out how much you should be contributing in order to reach that goal. Even if the numbers are large, it’s better to have a clear plan than a best-guess approach.
Finally, if you do need to change your standard of living in retirement, begin planning for that early. Again, by understanding what you can contribute and how that can grow over time, you will have a sense of what’s possible from your retirement account. Make your plans from there. That will give you a degree of control over how you have to change your lifestyle, so that you’re making cuts that you’re comfortable with instead of scrambling to meet your needs as they arise.
Bottom Line
The Center for Retirement Research at Boston College released its latest National Retirement Risk Index, and its findings are grim. Fully half of all Americans will need to cut their standard of living in order to ever retire.
Retirement Tips
You’ve worked. You’ve saved. You have a portfolio that’s humming along. So, with all of that going for you, how can you know when you’re ready to retire?
But the best way to know how your retirement plan is to get professional help. A financial advisor can help you save and plan for retirement. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three vetted financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
Eric Reed
Eric Reed is a freelance journalist who specializes in economics, policy and global issues, with substantial coverage of finance and personal finance. He has contributed to outlets including The Street, CNBC, Glassdoor and Consumer Reports. Eric’s work focuses on the human impact of abstract issues, emphasizing analytical journalism that helps readers more fully understand their world and their money. He has reported from more than a dozen countries, with datelines that include Sao Paolo, Brazil; Phnom Penh, Cambodia; and Athens, Greece. A former attorney, before becoming a journalist Eric worked in securities litigation and white collar criminal defense with a pro bono specialty in human trafficking issues. He graduated from the University of Michigan Law School and can be found any given Saturday in the fall cheering on his Wolverines.
Depending on the loan amount you need and where you’re buying a home in New Jersey, you may find it difficult to find financing beyond the conforming loan limits. If this is the case, you may need a jumbo loan.
What is a jumbo loan?
So, what exactly is a jumbo loan in New Jersey? It’s a mortgage loan that allows homebuyers to finance a property that exceeds the conforming loan limit set by the FHFA. In simpler terms, a jumbo loan is a specialized mortgage that enables you to borrow more money than you would be able to with a conventional loan. These loans are typically used to finance high-end or luxury properties in areas with high home prices.
If the loan amount needed is more than the conforming loan limit (CLL), you’ll need a jumbo loan. New Jersey jumbo loans allow you to borrow more money to buy a more expensive home, but they also come with higher interest rates and stricter requirements than conventional loans.
What is the jumbo loan limit in New Jersey?
In 2023, the conforming loan limit for a single-family home in most U.S. markets is $726,200. However, this limit can be higher in areas where the median home price is significantly above the national average.
$726,200 is the conforming loan limit in most New Jersey counties
$1,089,300 is the maximum limit in higher-cost counties
Keep in mind that the loan amount is what determines whether or not you’ll need a jumbo loan, not the price of the home you’re buying. So, if you were to put $50,000 down on a $750,000 home in Salem County, the loan would be $700,000, which is under the CLL for this area. In this case, your loan wouldn’t be considered a jumbo loan.
The following counties in New Jersey have a conforming loan limit beyond $726,200 for 2023:
County
FHFA Conforming Loan Limit
Bergen County
$1,089,300
Essex County
$1,089,300
Hudson County
$1,089,300
Hunterdon County
$1,089,300
Middlesex County
$1,089,300
Monmouth County
$1,089,300
Morris County
$1,089,300
Ocean County
$1,089,300
Passaic County
$1,089,300
Somerset County
$1,089,300
Sussex County
$1,089,300
Union County
$1,089,300
You can find the conforming loan limits for your county by using this FHFA map.
What are the requirements for a jumbo loan in New Jersey?
To qualify for a jumbo loan in New Jersey, borrowers must meet stricter requirements than they would for a conforming loan. The specific requirements can vary from lender to lender, but below are the typical requirements for borrowers seeking a jumbo loan.
Higher credit score: In order to be eligible for a jumbo mortgage, lenders generally expect applicants to have a credit score of at least 720. While some lenders may consider a score as low as 660, a credit score of less than that is typically not accepted.
Larger down payment: Jumbo loans typically require larger down payments than traditional mortgages. Generally, mortgage lenders require a down payment of at least 20% of the home’s purchase price to qualify for a jumbo loan. However, some lenders may require a higher percentage, depending on the borrower’s creditworthiness and overall financial situation. It’s worth noting that larger down payments can help to reduce monthly mortgage payments, as well as overall interest costs over the life of the loan.
More assets: During the asset review process, lenders typically request that jumbo loan borrowers provide evidence of sufficient liquid assets or savings to cover the equivalent of one year’s worth of loan payments.
Lower debt-to-income ratio (DTI): To qualify for a jumbo loan in New Jersey, lenders typically look for a debt-to-income (DTI) ratio of no higher than 43%, and ideally closer to 36%. The DTI is calculated by dividing the sum of all monthly debt payments by the borrower’s gross monthly income. This requirement ensures that borrowers have a strong ability to repay their loan and manage their debt.
Additional home appraisals: When you buy a home in New Jersey, a mortgage lender will require a home appraisal to confirm that the property’s value is equal to or higher than the loan amount. In some cases, a lender may require an additional appraisal for a jumbo loan. In cities with very few comparable property sales, the cost of the appraisal may be higher than in places with more frequent sales.
Save more, spend smarter, and make your money go further
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Shortly after graduating from New York University with a Master’s degree, Melanie Lockert turned to food stamps, as she worked her way out of $81,000 in student loans.
“There were a lot of emotions around carrying that debt. It caused a lot of stress and depression and anxiety for a long time,” she shared with me recently during an interview on my podcast.
The student loan crisis in America has reached epidemic proportions. With households across the country carrying $1.26 trillion in student loans, it is the second largest category of debt following mortgage debt.
For the class of 2016, the average student loan balance is $37,172, up six percent from the previous year, according to a new analysis by student loan expert Mark Kantrowitz published in the Wall Street Journal.
If you’re struggling to make ends meet due to student loans or wondering how you’ll ever pay off the debt in a timely manner, here are some key steps to support you along the way.
Never Pay Late. Ever.
Whoever likes to call student loans “good debt,” has probably never faced a late payment. “Falling behind on payments can cause federal loans to enter default, triggering expensive fees and collections,” says Heather Jarvis, attorney and student loan expert.
If you miss several payments and are in default, federal loan borrowers may also seize your wages, tax refunds and possibly social security benefits. And you can only imagine how all this can damage your credit score. (Keep reading for advice on what to do if you’re already in default.)
To avoid ever paying late, sign up for automatic payments with your lender. Doing so could also earn you a reduced interest rate (usually 0.25%), which could save you hundreds of dollars, maybe more, over the life of your loan.
Extend the Term
Speaking of your loan’s life, extending the term from 10 to 15 or 20 years could provide you with some payment relief since when you extend the term, your monthly payments decrease.
Bear in mind that since your interest rate remains the same this strategy may mean you’ll end up paying more to pay off the loan over time.
One way to avoid paying too much more interest is to take advantage of the smaller monthly payments for only a window of time. As soon as your finances strengthen place more than the monthly minimum towards your balance to help you get out of debt closer to your original term. Be sure to place extra payments directly towards the principal to knock down the debt even faster.
Tap Government Assistance
If you have federal student loans you may qualify for Income-Based Repayment (IBR), a government program that helps qualifying borrowers cap loan payments to a percentage of income, typically 10% of their income. The program will also forgive any remaining student loan debt after 20 or 25 years of making payments.
The Department of Education also has a program called Public Service Loan Forgiveness (PSLF). If you work full-time for a “public service” employer such as not-for-profits, AmeriCorps or PeaceCorps, the military or a government agency, PLSF may forgive your remaining federal loan debt after 10 years of employment.
If You’re Already Behind…You Have Options
If you’re in default, Jay Fleischman, a student loan and bankruptcy attorney, says you may be able to consolidate your loans under the U.S. Department of Education’s Direct Consolidation Loan Program, which is free and does not depend on creditworthiness. “You could also rehabilitate by making nine agreed-upon monthly payments over a 10-month period of time with the collector assigned to the account. Those payments may be adjusted based on your income, and payments can be as low as $5 per month,” he says.
For private student loan borrowers, “the situation is markedly different because there is no right to consolidate or rehabilitate unless the lender has a specific program to do so,” says Fleischman. Contact your loan servicer and learn about ways you may be able to reduce or eliminate payments until you get back on your feet, he says.
If your lender won’t budge, you may choose to remain in default until a settlement opportunity presents itself or until the statute of limitations for collection expires. As a last resort, you may also consider bankruptcy as a way to wipe out other debts and repay your student loans under court supervision. “Though bankruptcy may not wipe out your student loans except in limited circumstances, many people opt for bankruptcy as a way to get more control over the ways in which your loans get paid,” says Fleischman.
Tap Home Equity…With Caution
Homeowners may be eligible to use a home equity line of credit (HELOC) to pay off their remaining student loan balance. This allows them to pay off the student loan with the existing equity in their home and save money if the HELOC has a lower interest rate than the student loan.
There’s also a new program offered by online lender SoFi called the Student Loan Payoff ReFi that allows some homeowners to pay down student debt using their home’s equity. SoFi refinances the total amount of your student loans and existing mortgage at a lower rate. Through that process your student loan balance is paid off directly to the loan provider.
To qualify, SoFi says borrowers need healthy credit scores (check your free credit score to verify you qualify), a debt-to-income ratio that’s 45% or less (calculate debt-to-income ratio to see if you fall under this number) and a loan-to-value ratio that’s 80% or less (meaning you can’t be underwater on your mortgage). You can calculate your debt-to-income ratio with Turbo, and
Just keep in mind that when paying off your student loans with home equity – be it through SoFi or another lender – if you default on the consolidated loan the lender has the right to use your home as collateral and foreclose on the property. It’s a serious risk if you don’t have enough in savings or stable income to help you get by during tough times.
Remember to Deduct It
Student loans are no fun, but paying them can yield lower taxes. Each year the IRS lets borrowers deduct up to $2,500 in student loan interest from their taxable income.
Maybe Your Employer Can Help?
A growing number of companies are helping employees squash their student loans as an added perk like a 401(k) and health care.
Gradifi is a Boston-based start-up that’s working with over 200 employers to set up its student loan pay down plan, including PriceWaterhouseCoopers.
It’s a trend that’s likely to grow over the years with more than 50 percent of student loan borrowers saying they would rather receive student loan benefits than heath care from their employer.
Start a Side Hustle
While it’s important to cut back on spending to make room for paying down debt, that move alone isn’t always enough. “Pinching pennies and cutting back is really useful as an initial strategy, but at some point, there’s only so much you can cut back,” says Lockert, whose now chronicled her debt payoff strategies in the book Dear Debt: A Story About Breaking Up With Debt. Through a series of side hustles over the years, including housecleaning, event assisting and pet sitting, earning $10 to $50 per hour, Lockert managed to not only afford her living expenses, but also erase five figures worth of student loan debt.
Depending on your interests, you can find relatively easy gigs at sites like TaskRabbit, Tutor.com, GigWalk and Care.com.
Have a question for Farnoosh? You can submit your questions via Twitter @Farnoosh, Facebook or email at [email protected] (please note “Mint Blog” in the subject line).
Farnoosh Torabi is America’s leading personal finance authority hooked on helping Americans live their richest, happiest lives. From her early days reporting for Money Magazine to now hosting a primetime series on CNBC and writing monthly for O, The Oprah Magazine, she’s become our favorite go-to money expert and friend.
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