Solar batteries store solar energy for use at another time. Manufactured by companies including Panasonic, LG, Generac and Tesla, a solar battery typically costs $12,000 to $22,000. Solar batteries may be a good choice if you’re looking to use less grid electricity or go off-grid completely
.
Solar battery pros and cons
Lower energy bills.
Expensive to purchase and replace.
Environmental benefits — reduced need for fossil fuel generated power/lower carbon footprint.
Limited energy storage capacity.
Long life span options. Many can last up to 20 years or longer.
Safety concerns if improperly installed, ventilated or maintained. Some types can overheat and catch fire.
Possible federal and state tax incentives.
Regular maintenance required on some types.
Provides backup energy in the event of a blackout, regardless of weather.
Some types can be bulky and take up a lot of space.
Can avoid high peak-use-hours charges.
Requires proper disposal.
Increased energy efficiency.
Some types, such as nickel-cadmium, may contain materials that are harmful to the environment.
Less dependency on the grid.
Renters don’t qualify for federal tax incentives.
Can operate in tandem with a grid-tie system.
Some require special equipment for installation.
Quiet power, unlike generators.
Some may emit harmful gasses.
Can also be used for microgrids and portable power units.
Not all battery types are readily available for residential systems.
How do solar batteries work?
When you pair your solar energy system with a solar battery, the surplus energy your system generates goes straight to the battery, where it’s stored for later use (as opposed to that surplus automatically being returned to the grid)
State of South Carolina Energy Office. Battery Back-up. Accessed Mar 11, 2024.
.The energy stored in your battery bank can then be used later when you need it most, such as during a power blackout. Here’s how it works:
Solar panels use photons from the sun to knock electrons away from atoms and generate an electrical flow.
The excess electricity generated by the solar panels is stored as direct current (DC) energy in the solar battery.
An inverter converts the DC energy to alternating current (AC) energy for home use — either as needed, if you have a DC-coupled conversion system — or immediately for instant use if you have an AC-coupled conversion system. Excess power in this type of system can be converted back to DC to charge the battery.
A solar system with a solar battery may include these basic components:
Ground or roof-mounted solar panels.
Battery bank.
Inverter that converts DC energy into AC energy for home use.
Junction box to connect solar panel wiring to the home breaker panel.
Charge controller to prevent battery overheating.
Utility meter for the battery bank.
Disconnect switch to prevent islanding (continuing to generate electricity and push it onto the grid) during blackouts. This protects electrical workers trying to restore power.
If your solar system is connected to the grid, you’ll also have an interconnection agreement with your utility provider.
Types of solar batteries
Here are some of the main types of batteries commonly used in solar systems.
Lead acid batteries
These reliable staples are the oldest type of solar batteries, and they are often used for off-grid applications. They’re the most affordable solar battery option, but they have a low energy density, meaning they can’t hold a lot of energy for their weight. Compared to other options, they’re large and heavy.
Pros
Dependable, time-tested technology.
Easy to recycle.
Lower priced than other types of solar batteries.
Compatible with most systems.
Cons
Heavier and bulkier than other types of solar batteries.
To preserve battery life, it’s recommended that you don’t let the battery capacity drop below 50%. Other types of batteries can drop to 10% capacity — and sometimes lower — without damaging the system.
Generally need maintenance such as adding water (unless sealed).
May emit gasses.
Shorter life span than other types of solar batteries.
Take longer to recharge than other types of solar batteries.
Contain harmful chemicals and they require proper disposal.
Lithium-ion batteries
Well-suited to residential solar systems, lithium-ion batteries offer a small, light and long-lasting solar battery option with a high energy density. This newer technology lets you access more of the battery’s stored energy before needing to recharge it, which is why this type of battery is common in laptops and mobile phones. If they’re not installed properly, however, lithium-ion batteries can catch fire. They’re also pricier than some other types of batteries.
Pros
Smaller and lighter than other battery types; work well in tight spaces.
Newer technology with improved battery capacity and efficiency.
Long life span.
Little or no maintenance required.
Fewer batteries needed for power.
Lithium-ion batteries have a high depth of discharge, meaning if the battery capacity drops to 10%, it won’t strain the system or cause the system to degrade.
Cons
High price.
Can catch fire if improperly installed.
Special equipment required for installation.
Nickel-cadmium batteries
Designed mostly for commercial solar systems, nickel-cadmium batteries are rare in smaller residential applications. Because some manufacturers are testing ni-cads for home systems, we may see more of them in the future. Nickel-cadmium batteries use older technology, are low maintenance and long-lasting, have a high discharge capacity and can work efficiently even in extreme temperatures. However, they’re also heavy and bulky, lose charge when they’re not used, are costly and contain toxins that are harmful to the planet when not properly disposed of. Some countries have banned their use.
Pros
Long life span of up to 20 years or more.
Nickel-cadmium batteries have a high depth of discharge, meaning if the battery capacity drops to 20%, it won’t strain the system or cause the system to degrade.
Perform well under extreme weather conditions.
Time-tested technology.
Low maintenance.
Cons
Power retention is lower than other battery types.
Not environmentally friendly.
Not typically available for residential solar systems.
Heavy and bulky.
Flow batteries
Engineered for large-scale use with very limited availability to homeowners, this new technology uses water-based electrolytes that flow between two internal tanks. Charging and discharging takes place through chemical reactions within the battery, and increasing the number of tanks can increase total energy storage capacity. Flow batteries are very efficient and have a 100% discharge capacity. They’re also long-lasting and use nontoxic, nonflammable materials. Unfortunately, they’re also heavy, large and expensive. They require a lot of maintenance and have a low power density.
Pros
Customizable.
Long life span of 20 years or more.
Nonflammable and nontoxic materials.
High efficiency with 100% discharge capacity.
Cons
Heavy/bulky.
Considered too expensive for residential use.
Low power density.
High maintenance.
Final considerations and how to choose a solar battery
Here are a few important factors to consider and compare:
Budget. Weigh affordability and durability, and be aware that less expensive lead-acid batteries won’t last as long as lithium-ion batteries, which are more expensive upfront.
Space. Choose batteries that fit in your available space.
Warranty: Look for a solid warranty from a reputable manufacturer.
Battery capacity. For maximum efficiency, be sure this is appropriate for your solar system’s energy production. There are two measurements to consider: Storage capacity is how much energy the battery can hold; usable capacity is the energy the battery can provide minus the energy needed to operate the battery.
Battery life span. Longer life spans save on battery replacement costs over time and lessen the impact on the environment.
Round-trip efficiency. This is the measure of how well your battery stores and retrieves energy and how efficient its operation is after it’s charged. The industry standard for this is about 80%
.
Depth of discharge: This is how much power a battery uses before you need to recharge it.
Maintenance. Lower-priced battery options such as lead-acid typically require more maintenance, and you’ll need to decide how much maintenance you’re willing and able to perform.
Your system’s voltage requirements. Make sure your battery is compatible with the voltage requirements of your solar panels.
Frequently asked questions
Are there any tax incentives to offset the cost of a solar battery?
Yes. Depending on when you purchased and installed your solar battery, you may be eligible for a federal tax incentive of between 22% and 30% of the battery’s cost. To qualify, the battery must have a storage capacity of at least 3 kilowatt hours. New construction and existing homes both qualify, as do both primary and secondary residences. The home can be a house, co-op, condo, houseboat, mobile home or manufactured home. Rentals do not qualify for this tax incentive. State incentives may be available in your areas as well. Check this database to see if you qualify for one.
Can I have solar panels without buying a solar battery?
Yes. Without a battery, any excess energy you produce will just go back to the grid rather than be stored in a battery for your future use. This is called a grid-tie system.
What type of solar battery is the most popular for residential use?
Even though they’re pricey, lithium-ion batteries are the most popular type of solar battery for residential use because they’re long-lasting and often don’t need maintenance.
Imagine living in a city where essential amenities are just a short walk away. That’s the reality for many renters in Beaumont, a place known for its unique and pedestrian-friendly neighborhoods. Rentals are also very affrodable, with the average one-bedroom apartment in Beaumont costing just $800. From the charming streets of New Calder Place to the vibrant atmosphere of College Street Corridor, there’s a neighborhood to suit every walker’s preference.
In this ApartmentGuide article, we’ll take you on a virtual tour of the most walkable neighborhoods in Beaumont, offering insights into what makes each one unique.
All data sourced March 2024.
1. New Calder Place
Walk Score: 57
New Calder Place is the most walkable neighborhood in Beaumont, with a Walk Score of 57. Known for its historic charm, residents and visitors alike can explore the area and take advantage of its walkable layout. Notable attractions include the Beaumont Art Museum and the scenic Riverfront Park.
Search for New Calder Place apartments for rent.
2. College Street Corridor
Walk Score: 56
College Street Corridor has a Walk Score of 56, making it the second most walkable neighborhood in Beaumont. There’s a lot to love about the area, from its vibrant arts scene to its bustling nightlife. While you’re walking around the neighborhood, check out the Jefferson Theatre, a historic venue that hosts a variety of performances.
See College Street Corridor apartments for rent.
3. Martin Luther King
Walk Score: 48
Martin Luther King is the third most walkable neighborhood in downtown Beaumont. There are numerous walkable areas and attractions throughout Martin Luther King, like the Beaumont Farmers Market and the Beaumont Children’s Museum. And if you’re in the mood for an adventure, you’re not far from the Big Thicket National Preserve.
Find Martin Luther King apartments for rent.
4. Heart of the City
Walk Score: 46
Heart of the City has plenty of amenities a resident might need within walking distance. From the Beaumont Public Library to the Edison Plaza, you’re sure to find something to love. A notable amenity is the Fire Museum of Texas, which is a great spot for locals and visitors alike.
Browse Heart of the City apartments for rent.
5. C.A.N.A.
Walk Score: 45
As the fifth most walkable neighborhood in Beaumont, C.A.N.A. is known for its community spirit. Consider exploring Rogers Park or grabbing a bite to eat at Tacos La Bamba with friends. There are plenty of other amenities in this urban community as well, like the Beaumont Civic Center and the Art Museum of Southeast Texas.
Discover C.A.N.A. apartments for rent.
6. Rockwell
Walk Score: 43
Rockwell has a Walk Score of 43, making it the sixth most walkable neighborhood in Beaumont. Known for its residential feel, residents and visitors can choose from walkable amenities such as the Cattail Marsh Scenic Wetland & Boardwalk. While you’re out, check out the Beaumont Event Centre, a popular venue for concerts and festivals.
Look for Rockwell apartments for rent.
7. South C.A.N.A.
Walk Score: 42
South C.A.N.A. is the seventh most walkable neighborhood in Beaumont. This urban community has quite a few hotspots for residents to visit on foot, including the Beaumont Skatepark and the Beaumont Municipal Tennis Center. While you’re walking, take a moment to smell the flowers at the Beaumont Botanical Gardens.
Search for South C.A.N.A. apartments for rent.
8. Pine Cone
Walk Score: 41
Pine Cone has a Walk Score of 41, making it the eighth most walkable neighborhood in Beaumont. There’s a lot to love about the area, from grabbing a bite to eat at nearby Rao’s Bakery, to taking a walk at Perlstein Park. If you’re up for a longer outing, nearby Village Creek State Park is popular among locals.
Find Pine Cone apartments for rent.
9. C.A.B.L.E.
Walk Score: 38
The ninth most walkable neighborhood in Beaumont is C.A.B.L.E. Pedestrians can enjoy the variety of restaurants, cafes, and shops, like the Logon Cafe, Tacos La Bamba, and Rao’s Bakery. It’s also easy to walk over to the Beaumont Athletic Complex for a great day out.
Peruse C.A.B.L.E. apartments for rent.
10. Eugene Field
Walk Score: 38
Eugene Field is the tenth most walkable neighborhood in Beaumont. Local attractions here include the Beaumont Children’s Museum and the Texas Energy Museum, providing residents a spot to get together and enjoy their urban community.
Discover Eugene Field apartments for rent.
Methodology: Walk Score, a Redfin company, helps people find walkable, bikeable, and transit-friendly places to live, rating areas on a scale from 0-100. To calculate a Walk Score for a given point, Walk Score analyzes thousands of walking routes to nearby amenities, population density, and metrics such as block length and intersection density. Points are awarded based on the distance to amenities in each category.
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We’re in the final hours of Cyber Monday, but you can still deck your halls for the holidays with deals on home decor. Modern wall art or a patterned throw blanket can transform your living room just by adding some texture and color.
You can add wintry flair with a white pampas grass wreath that’s currently 63% off at CB2. Or get creative with your mood lighting and try the hexagonal Nanoleaf shapes: save $50 at Best Buy. For Christmas decorating ideas, we rounded up the best Christmas tree and holiday decor deals. You can also check out the best Cyber Monday furniture deals we’ve found across the internet.
There are still sales on tech, style, kitchen, and more, so we’re keeping our list of the best Cyber Monday deals updated through the end of the sale event.
Up to 50% off sitewide, plus an extra 50% on sale items Etsy: Save up to 60% decor from small businesses and makers H&M Home: 30% off everything Jonathan Adler: Up to 40% off sitewide Nordstrom: Up to 60% off throws, candles, bedding and more One Kings Lane: Up to 50% off plus an extra 15% off orders over $700 with 15CYBER Society6: Up to 70% of posters, minis and framed prints Target: Up to 40% off various home decor Urban Outfitters: 40% off sitewide Wayfair: Up to 60% off seasonal decor West Elm: Up to 70% off decor and furniture World Market: Save up to 30% on furniture and decor
Best Cyber Monday home decor deals
Anthropologie Rosalita Switch Plate
Anthropologie has some of the most detailed and lovely little switch plates, like these that add whimsy and cottage core vibes to even the simplest rental space. During Cyber Monday, you can take 30% off whether you need a single toggle switch or an outlet cover.
USTIDE Sunflower Rug Mat
A bold area rug adds color and warms up any room. This polyester microfiber rug comes with a non-slip backing. Get the all-time-low price on yellow, pink, and teal patterns.
The White Company Midnight Large Candle
This three-week candle has scent layers of vetivert, cardamom, and amber. The minimalist design and warming aromas will fit in with any decor. If the regular price seems steep for a candle, the current discount of over half off makes it more reasonable.
Frontgate Luxury Faux Fur Throw
Luscious and realistic-looking, the Frontgate Luxury Faux Fur Throws are a mix of modacrylic and polyester with a velvet polyester back. Varieties include Arctic hare, coyote, chinchilla, timberwolf, and lynx. The 50 by 70-inch blanket is $60 for Cyber Monday.
CB2 36-Inch Faux Ivory Pampas Grass Wreath
This fluffy, white wreath isn’t just for the holidays. The elegant pampas grass lends a winter accent to any room of the house. During Cyber Monday, you can get it for over half off.
Barefoot Dreams CozyChic™ Stripe Throw Blanket
Barefoot Dream’s CozyChic throws are a well-documented celebrity favorite. These soft and timeless blankets cozy up any corner. At over 65% off, this is a savings you’re not going to find anywhere else.
Capri Blue Blue Jean Faceted Jar
This candle combines citrus, white musk, and patchouli for a relaxing fragrance. The faceted lavender glass holder will add a hint of color to white bathrooms. The current 20% off is a deal we see often, but still a good one.
Nanoleaf Shapes (Hexagon)
Featuring a modular design, vibrant colors, and easy smart-home integration, the Nanoleaf Shapes system is fun and functional decor. Best Buy is offering 25% off during Cyber Monday: let this sale (and system) light up your home.
Pottery Barn Curtain Rain String Lights
Available in gold or silver, this curtain rain string light spans 72 inches wide and 72 inches long. Use it to add sparkle indoor or outdoor; just make sure to avoid contact with water. Take 25% off the usual price right now.
The Sill ZZ plant
The ZZ plant (Zamioculcas zamifolia) is one of the toughest indoor houseplants and can survive even the most difficult situations, such as long periods without water. It’s just $51 during The Sill’s Cyber Monday sale event.
Lumens Adesso Lighting Bowery Arc Floor Lamp
If you’re looking to light a small nook or corner in your home the Bowery Arc Floor Lamp provides a warm, focused layer of lighting. The curved design of the lamp, as well as its marble base, adds a simple touch of decor. Save 20% on all colors: brushed steel, antique brass, and black.
Pottery Barn Linden Shelf
This modern, arched shelf has a tray base that can display several bathroom accessories and decorative objects. It can even be a convenient place to hold your phone while you shower. The antique bronze model is 30% off.
Ohad Modular Wood Wall Art
Not your average wall art. This modular piece is both cozy and contemporary, and it’s currently 30% off.
H&M Metal Candelabra
This gold candelabra makes for a gorgeous centerpiece, and it’s 70% off. Top with your favorite taper candles.
Korniful Tabletop Fire Pit
Bring holiday cheer indoors with this tabletop fireplace perfect for roasting chestnuts on an open fire (roasting sticks included). You can buy fuel separately to create a smokeless and odorless flame that adds instant ambiance.
Jaclyn Turner
Senior Home Editor
Jaclyn Turner is Senior Home Editor at Business Insider Reviews, where she oversees home content, reviews, and guides spanning mattresses to vacuums, organization to smart homes, and more. However, she has a particularly soft spot for decor and interior decorating. Product recommendations and deal spotting run in her blood, and Jaclyn takes great pride in showcasing the best of what’s out there to make finding great products for your home and life a little bit easier. She joined the Business Insider team in October 2023. Jaclyn previously held editorial and e-commerce roles with Homes & Gardens, Real Homes, Livingetc, The Spruce, MyDomaine, and Apartment Therapy. Jaclyn received a dual bachelor of arts in Journalism and American Studies at the University of Maryland, College Park. Jaclyn currently resides in Atlanta, GA, with her Cavapoo. When she’s not working, you can find her perusing the aisles of Homegoods, scrolling TikTok for too long, and trying out local Atlanta restaurants. Connect with Jaclyn at [email protected] or give her a follow on Instagram @jaclynturnerLearn more about how our team of experts tests and reviews products at Insider here.
Lily Alig
Editor, Home and Kitchen
Lily Alig is an editor on the Business Insider Reviews team, covering the home and kitchen verticals. She helps run the kitchen section, working with in-house and freelance writers to build out coverage of small appliances, kitchen tools, and gourmet food.Since joining Business Insider as a fellow in August 2020, Lily spent a year and a half as a full-time reporter before becoming an editor. As a writer, she spoke with independent spice houses and professional chefs, as well as tested products by making 50 waffles in one day and searing 7 steaks in a week. In her role as editor, Lily tracks stories from pitch to publish, maintains the kitchen publishing calendar, and edits every story for copy and content.Lily is an avid home cook and baker, so she knows what consumers are looking for in kitchenware products. After work, you can find her watching sports, reading fantasy novels, and finding new recipes to try.Reach out to Lily at [email protected]. Learn more about how our team of experts tests and reviews products at Insider here.Learn more about how we test kitchen products.
Want to add a little woodland charm to your space? We got you! In case you haven’t noticed, mushrooms are trending in a big way in the home decor world—and we’re here for it. Mushroom lamps, stools, baskets, and embroidered motifs are flooding our feeds and have us itching to add a couple of pieces to our own homes for a cozy touch this winter. Check out our favorite picks below.
Amber Mushroom Candle Holder
Pull out these handmade glass candle holders at your next dinner party. We suggest buying a few and adding tonal shades of taper candles in reds and taupes. Sprinkle in bowls of seasonal fruits and veggies and you’ve got yourself a chic, no-fuss tablescape. To Buy: $55; comingsoonnewyork.com
OYOY Mini Wicker Mushroom Wall Light
This wall lamp is a great choice for a kid’s room—a neutral color scheme and timeless wicker make it sophisticated and sweet. Add one to either side of their bed to act as sconces. To Buy: $141; smallable.com
Sofiest Designs Disco Mushrooms
Mix a disco ball and a mushroom and you’ve got yourself a party-ready piece that’ll cheer up any living room. Cluster a couple together on your floor or add ’em to a table as a centerpiece. To Buy: from $90, urbanoutfitters.com
Velvet Mushrooms
These woodland cuties come in a luxe velvet with four colors to choose from. Put them on your mantel in a couple of colors alongside a garland as seasonal decor! To Buy: $48 for 3, shopterrain.com
Eco Fabric Fresheners
Want a reusable, easy way to make your linens and clothes smell good? Just add a couple of drops of your favorite essential oils to these mushrooms, and then toss them in the drawer for long lasting freshness. To Buy: $15 for 3, bando.com
Meri Meri Mushroom Party Decorations
Ain’t no party like a mushroom party! These stand-up paper decorations make any celebration a little more cheerful, whether it’s for your kid’s birthday or you’re having a woodland-themed dinner party. To Buy: $31, smallable.com
Rattan Mushroom Basket
Whether you use it as a playful purse for yourself (or your kid!) or display it on a shelf, this mushroom basket is just dang adorable. Plus, it doubles as a spot for smaller toys and dolls when not in use. To Buy: $60, us.olliella.com
Mushroom Wall Hook
Who needs plain hooks when you could get mushroom hooks? These come in a variety of shapes and sizes, so you could even make a whole wall of them for your entryway. To Buy: $18, urbanoutfitters.com
Lorena Canals Chanterelle and Morel Mushroom Rug
If you’re a real fungi connoisseur, you might be able to tell that the embroidered mushrooms on this rug are morels and chanterelles—yum! To Buy: $215, maisonette.com
Glass Mushroom Table Lamp
This lamp gives 70’s throwback vibes and we love the marbleized glass. It casts a warm, inviting glow that’s perfect for relaxing post-work. To Buy: $99, pbteen.com
Mushroom Glass Candle
When the temps dip, there’s nothing cozier than curling up next to a fire—even if that fire is just a lovely scented candle. These not only smell delish, they make the perfect vessel for decanting cotton swabs or stashing jewelry once all the wax melts. To Buy: $28, urbanoutfitters.com
Beige Linen Mushroom Napkins
Upgrade your everyday napkins with these cotton scalloped ones so that even taco Tuesday feels a little more special. Cute! To Buy: $77 for 4, maisonflaneur.com
When you ask people about their favorite season, few will likely say winter. However, there’s an undeniable sense of calm that comes with this period of hibernation, regardless if you live in a house in chilly Minneapolis, MN, or an apartment in Miami, FL. Even more unique is the feeling you get when the first warm breezes of spring arrive but winter still holds us in its mysteries.
In this article, Apartment Guide interviews expert candlemakers and sellers to find the scents that evoke both the coziness and moodiness of winter while also celebrating the promise of spring. We promise it will make scents as you keep reading!
Find harmony between dark and light
As the long, dark nights of winter shift to brighter days, the best winter-spring candle scents merge the moodiness of winter and the breeziness of spring. Try to find a candle that balances both vibes seamlessly.
“During this seasonal shift, I find that incorporating fresh citrus notes into my space provides a revitalizing touch reminiscent of the upcoming spring while still holding on to the cozy warmth of winter,” states Tianna Dean of Hummingbird Candle Company. “Blends of lemongrass, lime, and lemon top notes evoke a refreshing burst of citrus, symbolizing the awakening of spring, while the underlying notes of jasmine, black currant, and patchouli add a touch of warmth reminiscent of the lingering winter.”
Add a touch of aquatic fragrance
The pool is still closed, and you might not be ready to plan your beachside vacation quite yet. However, aquatic notes transport you to the relaxed feeling of lounging by the water.
“As the seasons shift, our my favorite transitional scent is our spring candle scent that evokes Oklahoma during a thunderstorm,” says Rico Smith of 46th State Candle. “With refreshing notes of eucalyptus, spearmint, and sea salt, it captures the invigorating essence of spring rain while still offering a hint of winter’s crispness, making it the perfect choice for transitioning between winter and spring seasons.”
Similarly, Jennifer Smyth of Modern Zen Candle Company notes: “Fragrances like sea salt and orchid orchestrate a coastal symphony, harmonizing sea salt’s crispness, jasmine’s soft touch, and tonka bean’s warmth — nature’s transition from chilly winds to the gentle caress of spring. For even more beachy vibes, bamboo and coconut whisk you away to a tranquil paradise with bamboo’s freshness, coconut milk’s creaminess, and pineapple’s sweetness—a scent that embodies a springtime escape.”
Opt for solar fragrances
AURA Candle Bar owner Linda Pendry suggests solar fragrances, or scent profiles evocative of tropical blooms. “Solar fragrances are top of mind as spring break plans interrupt the cold winter months with fragrances such as sea breeze, citrus facets of neroli or even the floral notes of olive blossom. Warmer base notes such as exotic agarwood, sensual driftwood, or smokey cedar lend themselves to grounding the fragrance as we all patiently await the longer days ahead as springtime unfolds.”
Try a combination of floral and woody notes
“I love burning candles that have a woody and floral scent with a hint of spice during the transition from winter to spring,” shares Reis Chester, founder of REISFIELDS NYC. “My go-to choice has a masterfully crafted blend of soft woody guaiac wood, fresh French roses, geranium, and violets. It is finally topped off with a subtle hint of black pepper and clove. Giving you the warmth of winter with the freshness of spring.”
“Our favorite scent for the transition months between winter and spring is a blend of dahlia and sandalwood,” says Nicola Hines of Candlish. “It reminds us of a lush wooded flower field in the spring and has a sophisticated and luxurious aroma that will uplift your mood. The comforting scent of slightly sweet base note sandalwood blends harmoniously with warm amber, light lemon zest, sultry jasmine, and yellow dahlia petals which gives off well-balanced and soft floral notes that are earthy and intriguing.”
Earthy and fresh scents win the season
From the crisp aroma of freshly cut pine to the grounding scent of damp earth after rainfall, earthy and fresh scents reign supreme this season.
“Most will gravitate to a floral-scented candle this time of year, but I’d recommend something with notes like white sage and lavender to cleanse the space of ghosts and emotional winter baggage,” says Jesse Regis of Virgins on Fire Candle Co.
Similarly, Kylie Antolini of Wildwood Candle Company recommends combining the freshness of earthy scents with the brightness of citrus to evoke a wooded meadow filled with flowers.
She says, “My favorite scents for transitioning out of winter into spring have a mix of grounding, earthy floral notes and brightness — for example, one of our candles has blended notes of ylang-ylang (grounding, floral), orange blossom (bright, floral), green fig (ripeness, rebirth, bright, green), and lavender (grounding, floral). It’s not only a wonderful year-round scent, but particularly wonderful coming out of winter, as our noses have missed smelling fragrant flowers in the sunshine.”
Or, as Wes at Milwaukee Candle Company says, “As winter surrenders to spring, lose yourself in the harmonious fusion of brightening citrus and comforting woodsy scents. The invigorating notes of blood orange signify nature’s awakening, while a deep, rich mahogany evokes the cozy embrace of winter. This blend effortlessly bridges the gap between winter hibernation and the blooming warmth of spring, creating a sensory experience that captures the essence of both seasons in perfect harmony.”
And if you want the earthy freshness that instantly reminds you of a luxurious spa, white tea takes the cake. Kianna Cornelia of Cornelia Home states, “Our favorite scent for the transition months between winter and spring is white tea. This aromatherapy fragrance promotes wellness and calmness, allowing you to enjoy a tranquil spa-like experience anywhere in your home.”
Find comfort with a sweeter fragrance
Though often thought of as solely winter candle scents, sweeter notes go with any season – so check in with your mood instead of the thermometer outside when it comes to finding a signature scent for March. And if we’re being honest – who isn’t in the mood for dessert, no matter the season?
According to Nose Best Candles, you can’t go wrong with gourmand scents, which are typically dessert-like scents like vanilla, almond, sugar and caramel. “When in doubt, go gourmand! The weather is so unpredictable during this time. So instead of trying to match the weather outside, find comfort in something like a snickerdoodle or banana nut bread. This will make your home smell like a 5-star bakery that you’ll never want to leave.”
Erika Whitus of Southern Charm Candle also chimed in: “When the holidays have passed, and we are in the cozy moments spent indoors waiting for the vibrant lively atmosphere of spring, our favorite scents are ones that combine elements of the fresh, sweet aroma of fruit with the warmth and comfort of a fresh-baked dessert. Juicy ripe strawberries, zesty lemons, or tropical bananas provide a refreshing burst of energy like spring itself whereas the comforting aroma of vanilla provides a grounding effect of waiting for your mom’s favorite recipes.”
Marry winter and spring with a musky scent
Fuse the essence of winter and spring with a musky scent, bridging the gap between the crisp chill of snow-covered landscapes and the burgeoning warmth of blooming flowers.
Ky Candle Company has a cashmere-blend scent, which is the perfect concoction to take you from winter to spring, according to owner, Sheena Bromagen. “It has warm, earthy notes of saffron and amber paired with the light floral fragrances of lily of the valley and violets. It’s rich and soft, calming and warm – a perfect scent all year!”
Or, as Tanisha Burke from Malaysian Lights puts it, “I have found the most favored scents between winter, and spring is something fresh and clean. My bestseller boasts notes of ozone, soothing musk, fresh flowers, and light coconut with a sandalwood base. The second scent that is found to be very popular between these seasons has plenty of cinnamon and vanilla. The cinnamon spice notes combined with rich, warm vanilla is a customer favorite.”
Experiment with olive
Pull out the olive scents if you want to try something refreshing and unique for the transition season. It offers an earthy balance of mellowness and warmth that lends itself to both winter and spring.
“Olive is my favorite fragrance for transitioning into spring!” says Clara Bailey from MacBailey Candle Co. “It is a complex fragrance that has a base of musk and vanilla, which bring in the cozy feelings of winter. The warm earthy middle notes add texture, while the top notes of orange and lemon bring in the fresh and clean notes of spring.”
Glenda from Palmetto Scent Studio recommends this right-now-ready scent, too: “As you prepare to transition your home from winter to spring, it’s important to take inspiration from the feelings we experience during this time of rejuvenation. Everyone’s anticipating the fresh, fragrant breezes to come, but there is still a slight chill in the air. Consider a scent that blends soft and cozy scents like cashmere with light, botanical notes like the sophisticated tea olive. These blends will help set a tone of anticipation as we await spring buds to emerge.”
Wow with deep, wood-forward notes
Whether you picture a large bonfire on a chilly night or a slow-burning fireplace in a cozy den, wood scents add to any winter scene. But did you know woody scents also transitioned well into warmer weather?
Alex at Kindred Homestead Supply notes how woody scents might evoke the season’s turn. “In this transitional period between winter and spring, the earthy blend of smokey oak, tobacco leaf, and a subtle touch of vanilla provides a comforting and enveloping atmosphere in our living spaces. These scents serve as a warm embrace, encouraging us to appreciate the restorative quiet of winter, while we eagerly look forward to the rejuvenation spring brings.”
Another expert adds her thoughts about this scent profile. “For us, it’s all about the blend of earthy, woodsy scents with a pop of floral freshness,” says Diane Mendoza of Never Alone Candles. “Think the floral vibrancy of lavender mixed with the earthy depth of oakmoss. It’s the perfect scent combo for transitioning from the cozy, reflective winter to the fresh, hopeful vibes of spring — like a breath of fresh air for your living space.”
Spring forward with flowers and citrus
Of course, you can skip the woody, spicy or sweet notes in your winter candle scents if you’ve been long-awaiting spring. We encourage you to go ahead and embrace every warm breeze – while lighting candles in scents that speed the next season along.
According to an owner at Gratus Candles,” Our favorite transitional scents from winter to spring would have to be a mixture of earthy, citrus and floral! This is because while our senses are use to those traditional winter fragrances filled with spices, earthy, and sweet notes, transitioning to fragrances that embody the warmer weather, such as: citrus and floral, while keeping true to those earth notes, will bring a familiarity to your visitors while easing them into the welcoming spring scents of the new season!
Caitlin Wheeler of Old North Candle Company explains this perfectly. “Our favorite way to transition from winter to spring scents is to focus on light, fruity blends. It feels too early to commit to floral scents, but most of the winter scents feel a bit heavy for this time of year. Fragrance notes of mint and chamomile are comforting on those lingering cold days, while mandarin and basil notes brighten up the scent to welcome in those airy, spring mornings.”
This sentiment seems to be echoed by other candle entrepreneurs, too. “Citrus and delicate floral fragrances are ideal for the season, as they offer a light, refreshing touch and harmonize beautifully when paired together,” posits Neosha Franklin, Owner & Candle artisan of Serene Nights Candle Co. “Our premier fragrance pick for the transition from winter to spring boasts a delightful fusion of citrus pear, cherry, and deep musk, creating an enchanting aroma perfectly suited for this season.”
In a similar vein, Two Chicks Candles’ owners Cassandra and Latoya Cargile chime in with their own poetic advice. “As we tiptoe into the whimsical realm of spring, let’s embrace the dance of melting snow and rejuvenating rain showers with aquatic delights like sea salt, ocean breeze, and the ethereal fragrance of exotic lotus flowers, elegant water lilies and delicate orchids — nature’s symphony of renewal.
These scents aren’t just whispers on the wind; they’re soul-cleansing reminders that winter’s grasp is fading, making way for spring’s gentle embrace. Embark on an aromatic journey where each inhale is a celebration of renewal and the enchanting allure of changing seasons. A blend of sea salt, lush green leaves, amber and freesia perfectly captures this transition.”
Ever dream of leaving your job to pursue a project you’ve always been passionate about, like starting your own business? Or going back to school without taking out student loans? What about the option to retire at age 50 instead of 65 without having to worry about money?
Any of these opportunities could happen if you’re able to achieve financial freedom — having the money and resources to afford the lifestyle you want.
Intrigued by the idea of being financially free? Read on to find out what financial freedom means and how it works, plus 12 ways to help make it a reality.
What Is Financial Freedom?
Financial freedom is being in a financial position that allows you to afford the lifestyle you want. It’s typically achieved by having enough income, savings, or investments so you can live comfortably without the constant stress of having to earn a certain amount of money.
For instance, you might attain financial freedom by saving and investing in such a way that allows you to build wealth, or by growing your income so you’re able to save more for the future. Eventually, you may become financially independent and live off your savings and investments.
There are a number of different ways to work toward financial freedom so that you can stop living paycheck-to-paycheck, get out of debt, save and invest, and prepare for retirement. 💡 Quick Tip: Did you know that opening a brokerage account typically doesn’t come with any setup costs? Often, the only requirement to open a brokerage account — aside from providing personal details — is making an initial deposit.
12 Ways to Help You Reach Financial Freedom
The following strategies can help start you on the path to financial freedom.
1. Determine Your Needs
A good first step toward financial freedom is figuring out what kind of lifestyle you want to have once you reach financial independence, and how much it will cost you to sustain it. Think about what will make you happy in your post-work life and then create a budget to help you get there.
As a bonus, living on — and sticking to — a budget now will allow you to meet your current expenses, pay your bills, and save for the future.
2. Reduce Debt
Debt can make it very hard, if not impossible, to become financially free. Debt not only reduces your overall net worth by the amount you’ve got in loans or lines of outstanding credit, but it increases your monthly expenses.
To pay off debt, you may want to focus on the avalanche method, which prioritizes the payment of high-interest debt like credit cards.
You might also try to see if you can get a lower interest rate on some of your debts. For instance, with credit card debt, it may be possible to lower your interest rate by calling your credit card company and negotiating better terms.
And be sure to pay all your other bills on time, including loan payments, to avoid going into even more debt.
3. Set Up an Emergency Fund
Having an emergency fund in place to cover at least three to six months’ worth of expenses when something unexpected happens can help prevent you from taking on more debt.
With an emergency fund, if you lose your job, or your car breaks down and needs expensive repairs, you’ll have the funds on hand to cover it, rather than having to put it on your credit card. That emergency cushion is a type of financial freedom in itself.
4. Seek Higher Wages
If you’re not earning enough to cover your bills, you aren’t going to be able to save enough to retire early and pursue your passions. For many people, figuring out how to make more money in order to increase savings is another crucial step in the journey toward financial freedom.
There are different ways to increase your income. First, think about ways to get paid more for the job that you’re already doing.
For instance, ask for a raise at work, or have a conversation with your manager about establishing a path toward a higher salary. Earning more now can help you save more for your future needs.
5. Consider a Side Gig
Another way to increase your earnings is to take on a side hustle outside of your full-time job. For instance, you could do pet-sitting or tutoring on evenings and weekends to generate supplemental income. You could then save or invest the extra money.
6. Explore New Income Streams
You can get creative and brainstorm opportunities to create new sources of income. One idea: Any property you own, including real estate, cars, and tools, might potentially serve as money-making assets. You may sell these items, or explore opportunities to rent them out.
7. Open a High-Yield Savings Account
A savings account gives you a designated place to put your money so that it can grow as you keep adding to it. And a high-yield savings account typically allows you to earn a lot more in interest than a traditional savings account. As of February 2024, some high-yield savings accounts offered annual percentage yields (APYs) of 4.5% compared to the 0.46% APY of traditional savings accounts.
You can even automate your savings by having your paychecks directly deposited into your account. That makes it even easier to save.
8. Make Contributions to Your 401(k)
At work, contribute to your 401(k) if such a plan is offered. Contribute the maximum amount to this tax-deferred retirement account if you can — in 2024, that’s $23,000, or $30,500 if you’re age 50 or older — to help build a nest egg.
If you can’t max out your 401(k), contribute at least enough to get matching funds (if applicable) from your employer. This is essentially “free” or extra money that will go toward your retirement. 💡 Quick Tip: Want to lower your taxable income? Start saving for retirement with a traditional IRA. The money you save each year is tax deductible (and you don’t owe any taxes until you withdraw the funds, usually in retirement).
9. Consider Other Investments
After contributing to your workplace retirement plan, you may want to consider opening another retirement account, such as an IRA, or an investment account like a brokerage account. You might choose to explore different investment asset classes, such as mutual funds, stocks, bonds, or exchange-traded funds.
When you invest, the power of compounding returns may help you grow your money over time. But be aware that there is risk involved with investing.
Although the stock market has generally experienced a high historical rate of return, stocks are notoriously volatile. If you’re thinking about investing, be sure to learn about the stock market first, and do research to find what kind of investments might work best for you.
It’s also extremely important to determine your risk tolerance to help settle on an investment strategy and asset type you’re comfortable with. For instance, you may be more comfortable investing in mutual funds rather than individual stocks.
10. Stay Up to Date on Financial Issues
Practicing “financial literacy,” which means being knowledgeable about financial topics, can help you manage your money. Keep tabs on financial news and changes in the tax laws or requirements that might pertain to you. Reassess your investment portfolio at regular intervals to make sure it continues to be in line with your goals and priorities. And go over your budget and expenses frequently to check that they accurately reflect your current situation.
11. Reduce Your Expenses
Maximize your savings by minimizing your costs. Analyze what you spend monthly and look for things to trim or cut. Bring lunch from home instead of buying it out during the work week. Cancel the gym membership you’re not using. Eat out less frequently. These things won’t impact your quality of life, and they will help you save more.
12. Live Within Your Means
And finally, avoid lifestyle creep: Don’t buy expensive things you don’t need. A luxury car or fancy vacation may sound appealing, but these “wants” can set back your savings goals and lead to new debt if you have to finance them. Borrowing money makes sense when it advances your goals, but if it doesn’t, skip it and save your money instead.
The Takeaway
Financial freedom can allow you to live the kind of life you’ve always wanted without the stress of having to earn a certain amount of money. To help achieve financial freedom, follow strategies like making a budget, paying your bills on time, paying down debt, living within your means, and contributing to your 401(k).
Saving and investing your money are other ways to potentially help build wealth over time. Do your research to find the best types of accounts and investments for your current situation and future aspirations.
Ready to invest in your goals? It’s easy to get started when you open an investment account with SoFi Invest. You can invest in stocks, exchange-traded funds (ETFs), mutual funds, alternative funds, and more. SoFi doesn’t charge commissions, but other fees apply (full fee disclosure here).
Invest with as little as $5 with a SoFi Active Investing account.
FAQ
How can I get financial freedom before 30?
Achieving financial freedom before age 30 is an ambitious goal that will require discipline and careful planning. To pursue it, you may want to follow strategies of the FIRE (Financial Independence Retire Early) movement. This approach entails setting a budget, living below your means in order to save a significant portion of your money, and establishing multiple streams of income, such as having a second job in addition to your primary job.
What is the most important first step towards achieving financial freedom?
The most important first step to achieving financial freedom is to figure out what kind of lifestyle you want to have and how much money you will need to sustain it. Once you know what your goals are, you can create a budget to help reach them.
What’s the difference between financial freedom and financial independence?
Financial freedom is being able to live the kind of lifestyle you want without financial strain or stress. Financial independence is having enough income, savings, or investments, to cover your needs without having to rely on a job or paycheck.
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Construction loans are short-term loans that you can use to build a new home.
Some construction loans can be converted to mortgages after your home is finished.
Construction loans typically have tougher criteria than conventional mortgages for existing homes.
If you can’t find the right home to buy, you might be thinking about building a house instead. Financing this type of project is somewhat different than getting a mortgage to move into an existing property. Instead of a mortgage, you take on a construction loan (also known as a construction mortgage). Here’s what to know about construction loans.
What are construction loans?
Construction loans are loans that fund the building of a residential home (aka a stick-built house), from the land purchase to the finished structure. Common types are a standalone construction loan — a short-term loan (generally with a year-long term) — which only finances the building phase, and a construction-to-permanent loan, which converts into a mortgage once the construction is done. Borrowers who take out a standalone construction loan often get a separate mortgage to pay it off when the principal falls due.
You can use a construction loan to cover such costs as:
The land
Contractor labor
Building materials
Permits
How do construction loans work?
The initial term on a construction loan generally lasts a year or less, during which time you must finish the project. Because construction loans work on such a short timetable and are dependent on the project’s progress, you (or your general contractor) must provide the lender with a construction timeline, detailed plans and a realistic budget. Based on that, the lender will release funds at various phases of the project, usually directly to the contractor.
Construction loan statistics
Construction loans typically require 20 percent down, at minimum.
As of the second quarter of 2023, commercial and non-commercial construction loan volume totaled $488.54 billion, according to S&P Global Market Intelligence.
Currently, the top five construction loan lenders, in terms of number of loans, are (in order): Wells Fargo, JP Morgan Chase, Bank of America, U.S. Bank and Bank OZK, reports S&P.
Construction loans vs. traditional mortgages
Beyond the cost and repayment timeline, construction loans and mortgages have a few main differences:
The funds distribution: Unlike mortgages and personal loans that provide funds in a lump-sum payment, the lender pays out the money for a construction loan in stages as work on the new home progresses. These draws tend to happen when major milestones are completed — for example, when the foundation is laid, or the framing of the house begins.
The repayments: With a mortgage, you start paying back the principal and interest right away. With construction loans, your lender will typically expect you to make interest payments only during the construction stage. Additionally, borrowers are typically only obligated to repay interest on any funds drawn to date until construction is completed.
Inspection/appraiser involvement: While the home is being built, the lender has an appraiser or inspector check the house during the various construction stages. As the work is approved, the lender makes additional payments to the contractor, known as draws. Expect to have between four and six inspections to monitor the progress.
Requirements: Construction loan requirements include being financially stable and having the ability to make a down payment. Lenders also want to see a construction plan, which you can read more about below.
Interest rates: Construction loan interest rates are typically higher than traditional mortgage rates. This is often because you’re not providing collateral to back the loan, which means the lender is taking on more risk.
Types of construction loans
There are different types of construction loans available to borrowers, which are designed to suit various financial needs.
Construction-to-permanent loan
With a construction-to-permanent loan, you borrow money to pay for the cost of building your home. Once the house is complete and you move in, the loan is converted to a permanent mortgage.
In essence, the loan becomes a traditional mortgage, typically with a loan term of 15 to 30 years. You can opt for a fixed-rate or an adjustable-rate mortgage.
Then, you start making payments that cover interest and the principal. (During the construction loan phase, your lender disburses the funds based upon the percentage of the project completed, and you’re only responsible for interest payments on the money drawn). While many construction loans are conventional loans — entirely privately originated and financed — there are government versions as well. Your other options include an FHA construction-to-permanent loan — with less-stringent approval standards that can be especially helpful for some borrowers — or a VA construction loan if you’re an eligible veteran.
Whatever the type, the big benefit of the construction-to-permanent approach is that you have only one set of closing costs to pay, reducing your overall expenses. “There’s a one-time closing so you don’t pay duplicate settlement fees,” says Janet Bossi, senior vice president at OceanFirst Bank in New Jersey.
Construction-only loan
A construction-only loan provides the funds necessary to build the home, but the borrower is responsible for repaying the loan in full at maturity (typically one year or less). You can settle the debt either in cash or by obtaining a mortgage to pay it off.
Construction-only loans can ultimately be costlier than their construction-to-permanent cousins, especially if you have to finance the repayment. That’s because you complete two separate loan transactions and pay two sets of fees. Closing costs tend to equal thousands of dollars, so it helps to avoid another set. And, of course, you have to invest time and energy shopping for a mortgage.
Another consideration: Your financial situation might worsen during the construction process. If you lose your job or face some other hardship, you might not be able to qualify for a mortgage later on — and might not be able to move into your new house.
Renovation loan
If you want to upgrade an existing home rather than build one, you can compare home renovation loan options. These come in a variety of forms depending on the amount of money you’re spending on the project.
“If a homeowner is looking to spend less than $20,000, they could consider getting a personal loan or using a credit card to finance the renovation,” says Steve Kaminski, head of U.S. Residential Lending at TD Bank. “For renovations starting at $25,000 or so, a home equity loan or line of credit may be appropriate, if the homeowner has built up equity in their home.”
Another viable option in a low mortgage rate environment is a cash-out refinance, whereby a homeowner would take out a new mortgage in a higher amount than their current loan and receive the extra as a lump sum. As rates tick up, though, cash-out refis become less appealing.
With any of these options, the lender generally does not require disclosure of how the homeowner will use the funds. The homeowner manages the budget, the plan and the payments. With other forms of financing, the lender will evaluate the builder, review the budget and oversee the draw schedule.
Owner-builder construction loan
Owner-builder loans are construction-to-permanent or construction-only loans in which the borrower also acts in the capacity of the home builder.
Most lenders won’t allow the borrower to act as their own builder because of the complexity of constructing a home and the experience required to comply with building codes. Lenders typically only allow it if the borrower is a licensed builder by trade.
End loan
An end loan simply refers to the homeowner’s mortgage once the property is built, says Kaminski. You use a construction loan during the building phase and repay it once the construction is completed. You’ll then have a regular mortgage to pay off, also known as the end loan.
“Not all lenders offer a construction-to-permanent loan, which involves a single loan closing,” says Kaminski. “Some require a second closing to move into the permanent mortgage, or an end loan.”
Construction loan rates
Unlike traditional mortgages, which carry fixed rates, construction loans usually have variable rates that fluctuate with the prime rate. That means your monthly payment can also change, moving upward or downward based on rate changes.
Construction loan rates are also typically higher than traditional mortgage rates. That’s partially because they’re unsecured (backed by an asset). With a traditional mortgage, your home acts as collateral — if you default on your payments, the lender can seize your home. With a home construction loan, the lender doesn’t have that option, so they tend to view these loans as bigger risks.
On average, you can expect interest rates for construction loans to be about 1 percentage point higher than those of traditional mortgage rates.
Construction loan requirements
The companies that offer construction loans usually require borrowers to:
Be financially stable. To get a construction loan, you’ll need a low debt-to-income ratio and proof of sufficient income to repay the loan. You also generally need a credit score of at least 680.
Make a down payment. You need to make a down payment when you apply for the loan, just as you do with most mortgages. The amount will depend on the lender you choose and the amount you’re trying to borrow to pay for construction, but construction loans usually require at least 20 percent down.
Have a construction plan. Lenders will want you to work with a reputable construction company and architect to come up with a detailed plan and schedule.
Get a home appraisal. Whether you’re getting a construction-only loan or a construction-to-permanent loan, lenders want to be certain that the home is (or will be) worth the money they’re lending you. The appraiser will assess the blueprints, the value of the lot and other details to arrive at an accurate figure. For construction-to-permanent loans, the home will serve as collateral for the mortgage once construction is complete.
How to get a construction loan
Getting approval for a construction loan might seem similar to the process of obtaining a mortgage, but getting approved to break ground on a brand-new home is a bit more complicated. Generally, you should follow these four steps:
Find a licensed builder: Lenders will want to know that your chosen builder has the expertise to complete the home. If you have friends who have built their own homes, ask for recommendations. You can also turn to the NAHB’s directory of local home builders’ associations to find contractors in your area. Just as you would compare multiple existing homes before buying one, it’s wise to compare different builders to find the combination of price and expertise that fits your needs.
Find a construction loan lender: Check with several experienced construction loan lenders to obtain details about their specific programs and procedures. If you have trouble finding a lender willing to work with you, check out smaller regional banks or credit unions. Compare construction loan rates, terms and down payment requirements to ensure you’re getting the best possible deal for your situation.
Get your documents together: A lender will likely ask for a contract with your builder that includes detailed pricing and plans for the project. Be sure to have references for your builder and any necessary proof of their business credentials. You will also likely need to provide many of the same financial documents as you would for a traditional mortgage, like pay stubs and tax statements, that offer proof of income, assets and employment.
Get preapproved: Getting preapproved for a construction loan can provide a helpful understanding of how much you will be able to borrow for the project. This can be an important step to avoid paying for plans from an architect or drawing up blueprints for a home that you will not be able to afford.
Get homeowners insurance: Even though you may not live in the home yet, your lender will likely require a prepaid homeowners insurance policy that includes builder’s risk coverage. This way, if something happens during the construction process — the halfway-built property catches on fire, or someone vandalizes it, for example — you are protected.
Construction loan FAQ
Construction loans cover the costs of building a home. Typically, that means the expenses associated with construction, such as contractor fees, labor and permits. But you can also use the funds to purchase land. However, construction loans do not cover design costs. If you want to hire a professional to design your home, you’ll need to cover that cost on your own.
Ask your lender how money gets disbursed from your loan amount. Some lenders allow for monthly draws, while others will only authorize a draw after a passed inspection. Inquire about any processes or documentation required to pull money from your construction loan so that you can pay the bills in a timely fashion as they come in.
Understanding this process — and ensuring your contractor does, too — can help to avoid delays because of insufficient funds.
There are benefits and drawbacks to construction loans. These types of loans tend to have higher interest rates than those associated with a mortgage, for instance. In addition, the funds provided by a construction loan are only released in stages as work on your home progresses rather than in a lump sum upfront. However, construction loans often only require interest payments while your home is being built, which can be easier on your budget. The loan terms may also be more flexible than those that come with a traditional loan.
Talk to your contractor and discuss the timeline of building the home and what sort of factors could slow down the job. Delays could result in changes to your loan’s interest rate, which can lead to higher payments. Delays can also lead to delays in fund disbursement for construction-only loans.
If your project takes longer than expected, work with your contractor to try to resolve any bottlenecks. You should also keep in touch with your lender to let them know what’s going on. Clear and consistent communication can help avoid major issues with the loan.
In general, it is harder to qualify for a construction loan than for a traditional mortgage. Most lenders require a credit score of at least 680 — which is higher than what you’d need for most conventional, VA and FHA loans. It’s also typical for lenders to ask for a minimum down payment of 20 percent on construction loans, so you may have trouble qualifying if you can’t get that much money together upfront.
Mortgage rates have risen recently but they could be much worse than they are today. As someone who doesn’t believe the Federal Reserve has pivoted and that the Fed enacted a COVID-19 housing policy to keep existing home sales depressed, It’s not shocking to me that rates are still this high, even though we had lower rates with a higher growth rate of inflation data.
Mortgage rates and the 10-year yield
The 10-year yield is the key for housing in 2024. In my 2024 forecast, I put the 10-year yield range between 3.21%-4.25%, with a critical line in the sand at 3.37%. If the economic data stays firm, we shouldn’t break below 3.21%, but if the labor data gets weaker, that line in the sand will be tested.
The most important data line for me, along with mortgage rates, is jobless claims data because I value labor data over inflation. The jobless claims data got better recently so it’s not a surprise to me that mortgage rates and the 10-year yield are still high.
Below is a look at the 10-year yield over the past few years.
Serious mortgage rate talk
For those who have followed my travails with the 10-year yield over the past year, you know that the 4.34% has been a critical level for me up and down in the merry-go-round world of tracking rates. If we break above this level, the Fed is playing with fire again like it did last year and the 10-year yield can shoot up to 5% again — putting 8% mortgage rates in play again. Even with a lot of hawkish Fed talk last week, we still haven’t broken above that level.
One part of my 2024 forecast has been wrong so far this year: I forecast that if the 10-year yield reached 4.25%, mortgage rates would hit 7.25%. That hasn’t happened. The 10-year yield went above this 4.25% level briefly, and the highest mortgage rates got was 7.16%. This is because the spreads are doing better this year; if the spreads were average, mortgage rates would be lower.
For the 10-year yield, breaking above 4.34% is a big deal. Also, getting below 3.80%, another critical level for the 10-year yield, will be a big deal. As discussed in a recent HousingWire Daily podcast, we would need softer economic data or a real Fed pivot for that to happen. You can see in the chart below why I suspected the bond yield wouldn’t get much lower than 3.80% after that massive move from 5%. If the economic data was getting softer, then yes, that is one thing, but that hasn’t happened yet.
Mortgage rates were lower in late 2022 and early 2023 with a higher inflation growth rate and the Fed still hiking because the bond market anticipated a Fed pivot or a recession, neither of which happened. Remember, the macro data and Fed expectations run a lot of this. This is why I believe in talking about 10-year yield channels for every year and not a single mortgage rate forecast.
For now, the economic and labor data is holding up, so we are still here with 7% rates. In this recent podcast, I discussed why I don’t believe the Fed will pivot housing here.
Weekly housing inventory data
My favorite housing data line for 2024 has been seeing the increase in inventory year over year. I firmly believe that housing inventory can grow over time when mortgage rates increase and we see weakness in demand. The trick is keeping rates higher for longer for that to occur, because once rates fall, the inventory growth story is gone.
Here is a look at inventory last week:
Weekly inventory change (Feb. 16-23): Inventory rose from 494,029 to 497,608
The same week the previous year (Feb. 17-24), Inventory fell from 437,282 to 430,395
The recent inventory bottom was in 2022 at 240,194
The inventory peak for 2023 was 569,898
For context, active listings for this week in 2015 were 958,304
New listings data
New listings data is growing year over year and increasing week to week, but I wish we were seeing more significant growth. As mortgage rates rise, there is weakness in demand and homes don’t go into contract immediately. This data line can grow faster as long as people still list their homes weekly.
Weekly new listing data for the last week over the previous several years:
2024: 51,381
2023: 44,864
2022: 48,979
For some historical reference, during 2008-2011, new listings data was growing between 250,000-400,000 per week.
Price-cut percentage
Every year, one-third of all homes take a price cut before selling — this is a traditional housing activity that happens every year. However, this data can move stronger in either direction when mortgage rates rise or fall aggressively.
The year-over-year price data has been stabilizing since Nov. 9, 2022. Even with 8% rates last year, the data was negative year over year, and we are still showing a decline year over year. As rates increase and the seasonal inventory increases, the year-over-year price cut data should increase versus 2023 levels as more supply enters the marketplace and purchase application data is trending negatively.
Here is the price cut percentage for the last week over the past several years
2024: 30.4%
2023: 31.1%
2022: 18.3 %
Purchase application data
We are seeing a similar pattern in the purchase application data to last year: when rates rose in February, purchase application data declined. Last week mortgage rates rose from 6.63% to 7.16%, ending the week at 7.08%. That’s created four straight weeks of negative data, similar to last year. This means the recent existing home sales report that showed a bounce is already too old.
Since November 2023, we have had eight positive and four negative purchase application prints after making holiday adjustments. Year to date, we have had two positive prints versus four negative prints. We are seeing a carbon copy of what happened in 2023, which means it’s hard to get real sales growth even working from the lowest sales levels ever. This is why last year, I talked about how the housing market really revolves around the 10-year yield.
The week ahead: Housing data and the inflation report
We have a bunch of housing reports this week, including new home sales, home price index reports and pending home sales. Pending home sales will be interesting because purchase apps have been weaker, so they should decline. If they don’t, they will be pushed into next month. Sometimes, old monthly data lags current forward-looking data by a month or two.
However, the Fed’s main inflation index, the PCE inflation report, will show that the inflation growth rate has cooled down from the pandemic’s peak but is still not good enough for them to pivot. As always, keep an eye out for Thursday’s jobless claims data. That’s the most critical data line we have today.
In today’s volatile housing market, ensuring your home is protected against unexpected repairs and replacements is more crucial than ever. As homeowners seek peace of mind amidst the unpredictability of homeownership, home warranty companies have stepped up to offer a buffer against unforeseen expenses.
5 Best Home Warranty Companies
With so many options available, pinpointing the most reliable and value-packed home warranty company can be daunting. To help you choose, we’ve curated a list of the best home warranty companies to ensure your home’s systems and appliances receive the top-tier coverage they deserve. Take the time to discover which provider aligns best with your needs.
#1 Choice Home Warranty
There are plenty of reasons to go with Choice Home Warranty. First, they are a top-rated business according to ConsumerAffairs.com and have an average rating of 4.8 out of 5.
They have a five-star rating from Trust Pilot, and Inc. 5000 has recognized them as one of America’s fastest-growing private companies.
Choice has customer service available 365 days a year, 24 hours a day, 7 days a week. So if you’ve got a problem, don’t be afraid to pick up the phone and call them.
They are more than happy to answer any questions about your home warranty plan or, if need be, put in a request for a repair. A licensed, pre-screened, and continuously monitored technician will come to your house, usually within one or two business days.
The age of your home, its systems, and appliances is not relevant to Choice Home Warranty. They always cover items that have been properly maintained and were in well-working order when coverage was initiated.
If the item in question needs to be replaced but is no longer available on the market, they will give you a cash payment of the item’s replacement cost.
Another plus is that you don’t even have to get your home inspected before Choice Home Warranty will begin offering you coverage.
Choice also has a very reasonable $85 dollar service call, which makes them among the most competitive warranty providers for service calls.
Plan Options
1. Total Plan ($450 a year)
Includes coverage on the following —
AC
Heating
Electrical
Plumbing
Water Heater
Whirlpool
Refrigerator
Oven
Dishwasher
Microwave
Garbage Disposal
Washer and Dryer
Ductwork
Garage Door Opener
Ceiling and Exhaust Fans
2. Basic Plan ($378 a year)
Includes coverage on everything mentioned above, EXCEPT:
AC
Refrigerator
Washer and Dryer
Items that can be added at additional cost include:
Pool
Central Vacuum
Well and Sump Pump
Limited Roof Leak
Stand Alone Freezer
Second Refrigerator
Septic System
Septic Pumping
Read our full review of Choice Home Warranty
#2 Advanced Home Warranty
Advanced Home Warranty offers comprehensive coverage and a 24/7 claims hotline, making it a strong choice for anyone considering a home warranty.
Home warranties are available nationwide, so you can qualify for a plan, no matter where you live in the U.S. Plus, you can try it out without any risk by signing up to get your first month completely free of charge.
Trade service fees are reasonable at $60. If the cost of the repair is less, you’ll pay the smaller amount. This is one of the lowest service fees available among the providers on our list.
While they don’t offer a wide range of plans, you can get coverage on some of the big-ticket items associated with homeownership.
A low monthly fee can be much more manageable than paying for replacements outright every time an appliance breaks. There are also parts of even larger systems that are included in their coverage.
Here’s a breakdown of the two home warranty plans available from Advanced Home Warranty, how much you’ll pay, and what exactly they include.
1. Basic Plan ($370 a year, plus one month free)
Includes coverage on the following:
Heating System
Electrical System
Plumbing System
Dishwasher
Microwave
Garage Door Opener
2. Total Plan ($450 a year, plus one month free)
Includes coverage on everything above, PLUS:
Air Conditioning
Refrigerator
Washer/Dryers
Do read each home warranty plan for details on exactly how each specific item on the list is covered.
Read our full review of Advanced Home Warranty
#3 Liberty Home Guard
Liberty Home Guard offers a high degree of personalization for your home warranty coverage. For example, you can pick the plan and also how often you want to be billed.
You can choose monthly payments, annual payments, or for the most savings, multi-year home warranty plans.
Liberty Home Guard offers a service call fee of $60, which is a competitive service fee. You can also expect your service call to be delivered within 48 hours of making a claim.
You don’t need a home inspection to qualify for coverage with Liberty Home Guard. There’s also no limit to how many claims you can file within a year.
You can file your claims online for your ease and convenience. And with a 60-day satisfaction guarantee on service, you’re sure to be satisfied with the repair or replacement process.
If for some reason, you want to cancel your plan early, it’s entirely possible because there’s no annual contract. You’ll receive a prorated refund for any time you’ve paid for, except for a small administrative fee.
With Liberty Home Guard, there are three different coverage options you can choose from. You can also include optional add-ons in any plan.
1. Appliance Warranty for $39.99 Monthly or $399.99 Annually
Clothes washer
Clothes dryer
Refrigerator with ice maker dispenser
Built-in microwave oven
Dishwasher
Garbage disposal
Range/ oven/ cooktop
Ceiling and exhaust fans
Garage door opener
2. Systems Guard for $49.99 Monthly or $499.99 Annually
Air conditioning
Heating
Ductwork
Plumbing
Electrical
Water heaters
3. Total Home Guard for $59.99 Monthly or $599.99 Annually
This choice offers the most protection of all the plans and includes everything listed in the two plans above.
4. Optional Add-ons
Pool and spa: $17.00 monthly; $195.00 annually
Sump and pump: $3.00 monthly; $36.00 annually
Central vacuum: $3.00 monthly; $36.00 annually
Well pump: $9.00 monthly; $101.00 annually
Additional spa: $16.00 monthly; $188.00 annually
Septic system and septic sewage ejector pump: $11.00 monthly; $123.00 annually
Stand alone freezer: $4.00 monthly; $44.00 annually
Second refrigerator: $4.00 monthly; $44.00 annually
Read our full review of Liberty Home Guard
#4 Complete Protection
Complete Protection is another excellent home warranty company. Servicing all but nine states, this A+ Accredited Business is open 24/7.
Only slightly more expensive, this once small-scale, family-owned business offers some of the most comprehensive home warranties available in North America.
One of the many benefits offered by Complete Protection is their no-fee service call policy. With most quality providers charging at least $50 per service call, having no service call fee at all is a major perk.
They have five plans you can choose from:
Kitchen/Laundry: $32 a month/ $384 a year — covers your dishwasher, oven, refrigerator, and washer and dryer.
Heating/Cooling: $34 a month/ $408 a year — covers your furnace, AC, and water heater.
Basic Built-ins: $40 a month/ $400 a year — Furnace, AC, water heater, dishwasher, and oven.
Full House: $50 a month/ $600 a year — Furnace, AC, water heater, dishwasher, oven, refrigerator, and washer and dryer.
Full House Plus: $60 a month/ $720 a year — Includes everything mentioned in the first four plans, but also includes electrical wiring and in-bound water pipes.
What makes Complete Protection stand out even more:
There are a few other things that make Complete Protection stand out from its competitors. For one, their home warranties don’t have a deductible. As a result, you don’t have to pay any approved repair costs when something happens — this includes the initial service call, parts, and labor.
Secondly, CP pays for all preventative maintenance. Other home warranty companies mandate that their customers undergo preventative maintenance on items such as HVAC systems, but they won’t even pay for it. Instead, they force their customers to do so!
Thirdly, CP home warranties cover all the parts within an appliance. Most home warranty companies exclude parts like ice makers or washing racks within dishwashers. CP does not pick and choose which parts it will cover.
Lastly, Complete Protection allows you to choose your own service contract provider. So, if you have a certified contractor with whom you work, you can go to them whenever home repairs are needed.
They do this because they feel that their customers should always be comfortable with the person working in their house.
Read our full review of Complete Protection
#5: American Home Shield
The accolades American Home Shield has received are many. In addition to being a Better Business Bureau Accredited Business, they also received the Women’s Choice Award from 2014 to 2016.
On top of that, Home Warranty Reviews gave American Home Shield the Best in Service award in 2014 and ranked them as Top Rated from 2015-2017. Last but not least, they are Consumer Affairs Accredited.
Why so much recognition from the industry? For starters, they’re always open. You can always reach them regardless of what day or time it is. And, when you do, expect a local contractor to be at your home within no more than 24 hours. You don’t even have to get on the phone. You can request home repairs directly from their website.
Another reason American Home Shield is recognized as the best among the best is its versatility with its home warranty plans. They have four to choose from:
Systems Plan: Covers the replacement or repair of your home’s key systems, such as: plumbing, electrical, heating, air conditioning, and smoke detectors.
Appliances Plan: Includes coverage on common, everyday household appliances, such as refrigerators, built-in food processors, dishwashers, and washer and dryers.
Combo Plan: Get coverage on all of your primary home systems and appliances. Saves you $14 a month if you were to rather purchase the systems and appliances plans separately.
Build your own plan: Choose only what you want to be covered by selecting 10 or more items from their list of covered items. This way you get the coverage that you care about the most.
Another element of their customized service is their service fees. American Home Shield allows customers to choose from a service fees range of $75, $100 or $125 per service request. This allows you to get the plan you want without having to account for a high service call fee.
The ability to choose your own service call fee regardless of the plan you’re on separates American Home Shield from most other home warranty companies which carry a standard service call fee.
Additionally, American Home Shield can provide coverage for your pool, spa, well pump, and septic system (at additional costs) and can assist you during the moving process by covering your home while it’s listed. If the new owner decides they would like to upgrade service afterward, it’s an easy switch to do so at closing.
Read our full review of American Home Shield
Methodology: How We Chose The Best Home Warranty Companies
When researching the best home warranty companies, we analyzed over 20 of the most popular home warranty companies. Our team spent hours reviewing each home warranty company. We examined many factors, but mainly focused on the following:
Home warranty plans and options
Pricing
Reputation and trustworthiness
Customer reviews
Pros of Home Warranties
Peace of Mind
One of the major benefits of a good home warranty is peace of mind. A home warranty can bring some real financial security against unexpected home repairs. While getting your home in ideal shape can be tough, maintaining that level can be even more stressful. A good warranty coverage can cut away a big chunk of that worry.
Convenience
One of the biggest problems people can encounter when faced with unexpected breakdown at home is finding good help. But a home warranty also reduces some of that stress, as your provider can provide you with a relevant licensed expert within their network.
Potential Savings
In many cases, standard home repairs – such as a new boiler, for example – can be a lot cheaper if replaced under warranty. While home warranties can’t guarantee savings, chances are you will see the benefits speak for themselves over time.
Transferable
Many home warranties are transferable, meaning you could carry your plan to a new home if you decide to move. Be sure to check whether transferability is a feature of any warranty before signing if that’s important to you.
Cons of Home Warranties
Wait Times
Unfortunately, wait times for claims can sometimes keep you waiting. If you need a quick fix or emergency repairs at home, you may have to wait longer than you would like. One thing that can help here is looking for a provider that provides an online claims process. This is because online claims are often processed faster than those done over the phone.
Coverage Exclusions
Home warranties don’t cover everything, and it can be hard in an emergency to remember your exact coverage limits. It’s important to read the details carefully before signing up, and put a plan in place if you need work that falls outside your warranty coverage.
Cost
Home warranty coverage isn’t cheap, especially if you want to secure protection across your property. You won’t necessarily be covered by service fees, even if you choose a plan with a high service fee. And of course, some maintenance and repairs can come with further costs on top of your plan. These high costs can make it difficult to discern whether a home warranty is the right thing for you.
Other Home Warranty Companies to Consider
Here are a few other home warranty companies that didn’t make our top 5 that you may still want to look into.
Like so many things in our lives, a home warranty is something that we don’t often think about until we absolutely need it. Sure, you have home insurance, maybe even flood insurance, but that only covers certain situations.
Homeowners Insurance
Homeowners or renters insurance can cover damage to your home from things like fire, theft, storms, and some natural disasters. In addition to your homeowners insurance plan, you should choose to purchase a home warranty to protect your belongings in a way that insurance lacks.
If you’ve ever purchased a large appliance, a computer, or even a television from a retailer, then you’re probably familiar with the concept of a warranty.
However, those are warranties sold at the time of purchase and cover only one product. The benefit of home warranty protection is that it can cover every product in your home and more.
Choosing a Home Warranty Plan
What a home warranty plan covers will depend on the plan you choose, and there are many to choose from. A home warranty can cover anything from your microwave oven to your plumbing and your electrical systems.
Deciding which plan is right for you will determine what items and systems it covers and how much it will cost. Typically, home warranties charge either a small monthly or annual fee that can save you a lot of money in the long run.
How to Choose the Right Home Warranty
Choosing the right home warranty is key. Let’s run through all the details you need to consider before making your decision.
Determine Your Coverage Needs
At the very least, it’s important to get at least an idea of what sort of coverage you need. Take the time to decide which items in your home you want to protect before comparing offers. You’ll find plans that cover appliances, home systems, and plans that cover both.
Compare Quotes
It’s worthwhile to shop around. Try to acquire at least three different quotes from plans that you’re genuinely interested in. And use this time to also prioritize clearing up any questions you have about the policies you’ve been offered.
Don’t forget to pay close attention to the various prices you’ll see for service call fees. Some companies are much more competitive than others, and some even offer a service fees range which you can choose from depending on your needs and budget.
Review Sample Contracts & Liabilities
The next step is to review any sample contracts carefully. You’ll want to identify the limitations and exclusions in the contract, especially.
Furthermore, be sure to double-check cancellation policy just in case you decide your warranty isn’t working for you later on.
Check Reviews
Finding the best home warranty company for you will require some further research. You can read customer reviews online to find a company that provides great customer service as well as competitive plans.
Be sure to look out for any record of previous legal action taken against the company, too.
Home Warranty FAQ
What is a home warranty?
A home warranty is a type of service contract purchased to cover breakdowns, repairs, and replacements of home appliances and systems. Home warranties are designed to cover normal wear-and-tear damage on covered items and systems.
When a covered item breaks down or otherwise requires attention, you file a claim with your warranty provider. They then send a licensed technician to your home to assess the issue. Instead of paying for the full cost of the repair, being under warranty generally means paying only a small service fee for necessary repairs. The price of service fees varies between providers.
Home warranties are popular because they offer homeowners maintenance coverage and emergency repairs without having to rely on savings. The home warranty market today is huge and can provide terms for homes and budgets of many shapes and sizes.
What does a home warranty cover?
Home warranties can cover a whole range of systems and appliances within your home. You can decide how much you want to spend and determine what items will be covered by your home warranty.
Most home warranty companies break down their offerings into good, better, and best options. The good option, and least expensive, is one that covers most if not all of your appliances.
Major Home Systems
More expensive on an upfront basis are plans that cover major home systems. These home warranty plans cover the systems within your home. If you’re renting, this may not be of concern to you. However, if you own your home, you know that a plumber or electrician can cost a lot more than replacing your refrigerator.
If you’re less concerned with appliances and worried about what keeps your home humming along, then you may want to consider a system plan.
Appliances
Appliances like your microwave, washer and dryer, dishwasher, and often a lot more are covered by the best home warranty companies. These are great options for those who are renting or want to spend the least amount of money.
Systems & Appliances
The most expensive plans, of course, offer the most coverage. The best plans cover both systems and appliances. So while they’re the most expensive, they’re also the best value. Covering your systems and appliances together will typically save you around 20% to 30% of your total bill.
Basic plans from the best home warranty companies will cover the majority of systems and appliances in your home but don’t cover everything. If you have a pool, for instance, you may have to choose additional coverage.
Some home warranty companies even allow you to add coverage to cover your homeowners’ insurance deductible. Combining appliance and system coverage may also include these additions.
There are exclusions to what a home warranty will cover. Unfortunately, no plan is a blank check to have every item in your home replaced. These are repair plans and not replacement plans.
What is not covered by a home warranty?
The extent of your warranty coverage will vary greatly between companies and plans available. Having said that, however, here is a list of the ideas that are usually not covered by a home warranty:
Structural issues, paint and flooring
Commercial-grade equipment or systems
Pre-existing conditions
Rust, corrosion and sediment problems
Improper maintenance, installation, design, or manufacturer defect
Detection and removal of asbestos and mold
Building and zoning code violations
How much does a home warranty cost?
Home warranty pricing varies greatly depending on the coverage you choose, the home warranty company, and the area in which you live. In general, though, if you’re just covering appliances, expect to pay around $30 a month.
If you’re looking for only system coverage, you’ll probably pay around $35 a month. However, if you combine your coverage to include both systems and appliances, expect to pay around $45 per month.
Adding things not covered by a typical home warranty plan can also increase your monthly bill. If you have an atypical appliance or system, it’s possible that basic plans do not cover it. Not everyone has a swimming pool, a septic tank, a whirlpool tub, or a spa.
Check with your individual plan to ensure that all systems and appliances you want to have covered are actually included. If they aren’t, see if you can add them separately.
Service Fees
In addition to your monthly fee, you’ll also need to pay service fees for a service call. This cost can vary greatly.
The best home warranty companies offer plans that will cost you around $50 to $125 per repair. This is based on the home warranty company, the plan, and the item that needs to be fixed. While this may seem like a lot, consider the cost of the average repair without a warranty.
What can you expect to pay without a home warranty?
The average repair cost of a refrigerator is $275 to $325. The igniter on an oven or range may only cost $110 to $200 to repair, but a control board could cost you more than $260.
Replacing a rubber gasket on your washer will set you back between $200 to $300. These expenses can quickly add up compared to the fee home warranty companies charge for a visit.
Bottom line: They’ll address the issues with your current item but won’t give you a new one.
Pre-Existing Conditions
Pre-existing conditions are not covered either. Unfortunately, if one of your major appliances breaks, you can’t just sign up for coverage and expect to have it fixed.
Most home warranty companies will cover an unknown pre-existing condition. However, you can’t have an appliance covered if you or the home warranty provider knows that it’s already broken. This is why it’s a good idea to think about purchasing home warranty coverage before your appliances break.
Coverage Waiting Period
Most companies impose a 15 to 30 day waiting period before coverage can begin. There are, however, exceptions to this rule. For instance, if you have a home warranty that is ending soon, you may be able to begin on the date your coverage stops.
It’s important to read the fine print of your service contract. Each home warranty company will have very specific coverage details.
While all will most likely cover your refrigerator, not all of them will cover wear and tear on the gasket that seals it. Typically, the more expensive the plan, the more it covers, but this is not always the case.
What is the process for having an item repaired?
When something breaks, especially if you have a home warranty, you’ll want it fixed as quickly as possible.
Going without a microwave for a week or two may be acceptable, but if it’s your refrigerator, you may not be so patient. When an item malfunctions or breaks, you’ll need to contact your home warranty company’s customer service and explain the issue.
Make sure you report the problem as quickly as possible. The faster you make the call, the faster you’ll get an appointment and have your issue resolved.
Independent Contractors
The home warranty provider will most likely assign an independent contractor to inspect and repair the item. Obviously, system repairs can take longer and be more labor-intensive.
For example, replacing a part on your furnace will be a lot easier than repairing electrical wiring or plumbing inside your walls.
Depending on what is wrong, the contractor may have to order parts or return with specialized equipment. You’ll be required to pay a service fee for each item you wish to have repaired. However, the contractor should ensure that the item returns to working order.
Workmanship Guarantee
Once you’ve had an appliance or system repaired, that item is covered under a workmanship guarantee. Think of it as a warranty within your warranty.
The home warranty provider guarantees the parts and labor of that particular repair for a specified amount of time. This is usually around 90 to 180 days after the repair. So, even if you cancel your plan, they will still cover the repair during that time.
Who should pay for a home warranty?
Many times the seller will buy a home warranty to make the purchase of the home more appealing. Sometimes a real estate agent will even purchase a home warranty as a courtesy to the clients they’re representing. However, buyers, sellers, real estate agents, and current homeowners can all buy a home warranty. It’s also important to note that buying a home warranty can be done at any time, before or after closing.
What should you look for in a home warranty company?
A home warranty can save you a lot of hassle and headaches, not to mention money, down the road—as long as you do your homework and think it through.
A home warranty covers many things that homeowners insurance does not. Having peace of mind knowing that costly home repairs won’t spring up unexpectedly is a great feeling.
Choosing the right type of coverage for you is the next step. When you think about the type of coverage you want, think about the items you want to protect in your home.
Renters
If you’re just renting, then plumbing and electrical work is not a concern for you. Your homeowners insurance should cover things like theft and fire, but you still want to be covered when something breaks that you actually own. Choosing an appliance plan is probably the right option for you.
If you live in an older home that you own, a more comprehensive plan may be the right choice for you. It’s comforting to have your home inspected before purchasing, but things can still go wrong. You can avoid costly maintenance as long as you plan ahead.
Are home warranties worth it?
The answer to this question will depend largely on your unique circumstances. Two of the biggest factors are the age of your home and the quality of your appliances. In addition, your own ability and comfort with repair and maintenance is a factor.
Almost every home appliance and system will eventually require significant repair or even replacement. Depending on your own DIY skills, you might be comfortable taking responsibility for most repairs. Others might want more comprehensive coverage. But even still, there could be plenty of reasons why you would prefer to have a home warranty.
How do I cancel my home warranty?
Your first step should be to review your contract and make sure you understand the cancellation policy. Most companies will charge a cancellation fee that can range from 5% to 10% of the outstanding fee.
Thereafter, you can contact the company and tell them you’re considering cancelling your warranty. If possible, try to speak to a sales rep with whom you’re familiar.
Some companies require you to send a written notice of termination. Remember to cancel any automated payments from your credit card or bank account, if necessary. It might also be a good idea to request a written confirmation of the cancellation for your records.
Which home warranty company has the lowest service call fee?
Service call fees can vary widely between companies, but it’s important to try to find the most competitive service call fee available to you. Service fees generally range from $50 to $150 per service call.
The trick with finding a competitive service fee call is making sure you don’t sacrifice the quality of service calls. Some of the top-rated home warranty companies charge a higher service fee. However, it could be worth it to have the security and confidence of quality home service.
Final Thoughts
To find the best home warranty company, you will need to read the contract thoroughly. Every company that you investigate will have a contract. In that contract, they’ll spell out exactly what they do and do not cover.
They’ll also explain the cost, who will fix your items if they break, and more. Comparing two or more home warranty companies can give you a sense that you’ve made the right decision. Always make sure you do your homework.
Furthermore, check to see if a home inspection is required before qualifying for a home warranty with a specific company. Many don’t require this extra step, but it’s wise to be prepared in case they do. You definitely want to consider both cost and convenience as part of your ultimate decision.
Full Reviews of Home Warranty Companies
Looking for more options? Check out our other home warranty reviews below.
The 10-year yield is the key for housing in 2024. In my 2024 forecast, I put the 10-year yield range between 3.21%-4.25%, with a critical line in the sand at 3.37%. If the economic data stays firm, we shouldn’t break below 3.21%, but if the labor data gets weaker, that line in the sand — which I call the Gandalf line, as in “you shall not pass” — will be tested.
This 10-year yield range translates to mortgage rates between 5.75%-7.25%, but this assumes spreads are still bad. The spreads have been improving this year so much that if we hit 4.25% on the 10-year yield, we still won’t see 7.25% in mortgage rates. As we saw last week, I already got this wrong in 2024 because we got above 4.25% on the 10-year yield and peak mortgage rate pricing was 7.14%. This means the spreads are acting better in 2024 than I had anticipated.
Serious mortgage rate talk!
We are approaching a critical technical level on the 10-year yield that can cause market drama for mortgage rates. For those who have followed my Instagram story videos for over a year, the essential level of 4.34% is getting close to being tested again. If we break above this level, bond traders can sell bonds and take the 10-year yields much higher if the Fed doesn’t step in.
The Fed has said they don’t want this to happen because policy would be too restrictive, but short-term bond traders don’t care. It was good to see Fed Governor Waller try to push back on the recent move in yields last week, but playing with fire here is not the best thing for the Fed. We have bounced from the 3.80% area twice, once in late 2023 and early 2024. This year we have mostly stayed between 3.80%-4.25% — this isn’t surprising, especially with low jobless claims data.
Jobless claims data, to me, is the most critical data line for rates to go lower in 2024, and it’s been firm so far this year. However, the 10-year yield above 4.34% is not part of the 2024 forecast, and if that happens, look again for Fed members to try to talk the bond market down again if this escalates to a 5% 10-year yield and 8% mortgage rates. The chart below looks at the 10-year yield, and the horizontal lines show why 3.80% and 4.34% are key levels, especially when looking at the downtrend from 5%.
Weekly housing inventory data
The best part of 2024 for me is watching housing inventory grow year-over-year. As we can see below, we are more than double the lows we saw in March of 2022, when I had already deemed the housing market savagely unhealthy. We should see the seasonal bottom soon and then the traditional increase in active inventory to match the growth in new listings data. This also assumes that new listing data stays on its path for growth year over year.
Here is a look at last week:
Weekly inventory change (Feb. 9-16): Inventory fell from 494,862 to 494,029
Same week last year (Feb. 10-17): Inventory fell from 444,129 to 437,282
The recent inventory bottom was in 2022 at 240,194
The inventory peak for 2023 was 569,898
For context, active listings for this week in 2015 were 954,581
New listings data
New listings data saw a week-to-week decline, but it is still up year over year. Mortgage rates have been increasing lately, and I am always mindful that some people will not list their homes to sell and buy another one if rates jump on them. Last year, the data was very steady, even with mortgage rates heading toward 8%. However, 2023 was the lowest new listings data pool ever, which was an unhealthy outcome.
Weekly new listing data for the last week over the previous several years:
2024: 49,559
2023: 42,073
2022: 48,979
Price-cut percentage
Every year, one-third of all homes take a price cut before selling — this is a traditional housing activity that happens every year. However, this data can move stronger in either direction when mortgage rates rise or fall aggressively.
The year-over-year price data has been stabilizing since Nov. 9, 2022. Even with 8% rates last year, the data was negative year over year and we are still showing a decline year over year. However, the gap is narrowing, and the seasonal inventory increase will happen soon. Here are the price cut percentages for last week over the last several years:
2024: 30%
2023: 31.3%
2022: 18.3 %
Purchase application data
Higher mortgage rates are already impacting the purchase application data with three straight negative weekly prints, and rates went higher again last week. Now, while home sales aren’t crashing and we will see a bounce in sales in the following existing home sales report, the forward-looking data isn’t showing growth. As I have stated time and time again, the Fed and the government have a COVID-19 housing economy policy, and keeping sales depressed is in their interest, something I talked about last year on CNBC.
Since November of 2023, we have had eight positive and three negative prints after making holiday adjustments. Year to date, we have had two positive prints versus three negative prints. I know some people have said the last two weeks show positive weekly data, but they are looking at the unadjusted numbers weekly data; we don’t count that.
The week ahead: Existing home sales, jobless claims and Fed talking points
This week we will have the existing home sales report and the leading economic index. We will see a bounce in existing home sales, but it won’t be like in 2023, when sales rose to 4.55 million. Fed Governor Michelle Bowman might come out with some absolute hawkish statements, so keep an eye out on Wednesday when she talks. Of course, my crucial data line is jobless claims data, which comes out every Thursday morning.