So, I’m not quite sure how this all happened, but in approximately eight short! weeks, there’s going to be a very small human in the loft! And I’m kinda freaking out about it. After soaking up every one of the 72 glorious babymoon hours over the weekend, reality is now crashing down around me. It’s officially time to turn our attention to the to-do list. Diapers, bottles, something for the little thing to wear, maybe something for it to sleep in…yeah, I’ve really gotta get on all that.
But of course, rather than concern myself with practical issues like what a breast pump actually does, I’d rather focus on the aesthetics of it all! On the tippy top of my list is figuring out how to incorporate a baby into our physical space. There’s certainly no room for a nursery where all baby-related items can live behind a closed door. It’ll be a good long while before our new house will be done and I can have a space like this:
For the time being, I’m going to have to make due with everything being out in the open. And while I really don’t want all things infant to invade our space, I also don’t want to completely ignore the fact there will be a wee-one in our presence. So I’ve started hunting for subtle ways to incorporate baby-related decor. My starting place is this cool alphabet poster we happened to pick up a few years back originally intended as a baby present for someone else – whoops!.
It already fits into our very neutral color scheme perfectly and feels like something I won’t get sick of looking at! Thankfully, the new online framing company Framebridge was able to help me design a custom frame for it. I simply sent them the print in the mail and their framing experts emailed me back mock-ups of mat and frame suggestions. I just selected the final style and the print showed back up on my doorstep – ready for its spot on the wall! Can you guess which framing option I picked…
I decided to go with the classic modern style of the Marin frame with the white mat to really make the lighter tones in the poster pop. While I haven’t quite figured out where we’ll be hanging this lovely guy just yet, the print is currently the anchor piece for my baby-decor moodboard!
Think yummy warm browns from light natural wood to camel and touches of black with a minimalist undertone. I’m also really loving the anchor motif and mixing in a touch of metallic. I’m open to a few sweet accessories like that crazy adorable stuffed bunny hanging around too! Even I’m a sucker for something that cute and cuddly.
I’m not sure where or how I’ll incorporate these little baby-themed moments into the loft yet. Maybe I’ll create a little gallery wall around the bassinet. Or perhaps we’ll carve out a little play corner that can have our baby-themed art and some fun accessories. Or maybe I’ll just scatter a few aesthetically pleasing kid-friendly things here and there. Plans are now starting to form, so I’ll be able to share what we finally decide with you soon!
Even gathering just these few small inspiration items does get me excited to incorporate le bebe into our world! I’m thinking some instagram mini-frames will definitely be in my near future!
Right now Framebridge is also offering you a great opportunity to get your frame on. Simply enter the code APARTMENT34 at check out and enjoy 20% off 2 or more items!
nursery image via live loud girl // photography for apartment 34 by bianca sotelo
This post is in partnership with Framebridge. All thoughts, opinions and styling are 100% our own. Thanks for supporting collaborations we’re excited about and that help keep Apartment 34’s doors open!
Former president of Media & Marketplace at Zillow, Greg Schwartz, joins us on today’s podcast. Listen and learn about the business principles that built Zillow and how to apply them to your real estate team. Greg and Aaron also discuss why home prices are still sky high, the biggest opportunity for real estate agents right now, and the secret to incredible customer service. Be sure to listen until the end for your chance to win a Sony EV-10 bundle from Tomo!
Get 10+ hours of mastermind-level content 100% FREE. Register at Carrot.com/Rockstar today!
Listen to today’s show and learn:
Greg Schwartz’ start in real estate [4:32]
Wise words: Be wary of debt [6:11]
Why real estate always has a bright future [8:25]
Opportunities with first-time home buyers [11:53]
How Zillow changed the real estate industry [13:17]
Greg Schwartz’ advice on building a real estate business [14:32]
The mindset shift Realtors need in order to build a team [17:08]
The business practices that built Zillow into what it is today [22:43]
The single most important thing for retention [25:32]
Celebrating the success of employees who move on [29:06]
Why the most successful agents are successful [33:37]
The founding principle of Zillow’s Premiere Agent Program [34:41]
Japan’s amazing customer service [37:32]
Best practices for converting online real estate leads [40:15]
What Tomo is and what it offers [44:30]
Tomo’s “appraisal guarantee” program [46:59]
How to work with Tomo [50:51]
REGISTER NOW to win a Sony EV-10 Bundle [52:32]
Related Links and Resources:
It might go without saying, but I’m going to say it anyway: We really value listeners like you. We’re constantly working to improve the show, so why not leave us a review? If you love the content and can’t stand the thought of missing the nuggets our Rockstar guests share every week, please subscribe; it’ll get you instant access to our latest episodes and is the best way to support your favorite real estate podcast. Have questions? Suggestions? Want to say hi? Shoot me a message via Twitter, Instagram, Facebook, or Email.
When you have kids you always want to do what’s best for them. You wonder, what is the right brand of diapers to buy, which baby lotion is the best for their skin, which car seat is the safest? The sheer number of decisions that you have to make as a new parent can be overwhelming.
One of the decisions my husband and I are currently grappling with is around the state of our children’s education. Where should they go to school? Where will they receive the best education? Is there a certain educational philosophy that would fit best with their learning style?
When I was growing up the decision was easy. You go to the school that’s closest to where you live. And while this is still an option, parents can also consider a number of other choices. You can send your children to public school, charter school, private school, or you can homeschool.
This article will introduce these four different schooling options, what they are, how they work, and the eduction costs involved so you can make the decision that is best for your family.
What’s Ahead:
The cost of private, public, charter, and homeschool tuition and other costs to consider
Private
Public
Charter
Homeschool
Average out of pocket tuition
$11,004
Free
Free
Free
Other costs to consider
Uniform Extra curriculars Transportation Tutoring Field trips “Keeping up with Joneses”
School supplies Tutoring Clothing Field trips
School supplies Tutoring Clothing Field trips Transportation
Curriculum School supplies Textbooks Computers Workstation (desk/chairs) Opportunity costs
In 2019, there were approximately 56.6 million students attending elementary and secondary school in the U.S. Of those students, 5.8 million were enrolled in a private school and 50.8 million were enrolled in public schools.
As of 2017, 7.1% of public schools are classified as charter schools. Charter schools have seen their numbers grow from 6,860 in 2016 to 7,010 in 2017.
There are approximately 2.5 million students from grades K-12 being homeschooled in the US. According to the National Home Education Research Institute. This is equivalent to approximately 3% – 4% of school-aged children.
Private school
Private school can be super expensive for the average family. While we all want what is best for our kids you might be wondering, why would I stretch myself so thin financially when I can send my kids to public school for free?
Great question.
Every family will have their own reasons for choosing the school system that is right for them but some of the reasons families opt for private include:
Smaller class sizes (sometimes). According to EducationalData.org, the average class size for private schools is 18.8 students compared to 24 students in public school.
Looking for a specific educational approach. For instance, some families might want their children to experience the Montessori style of learning.
Gifted children or children with special needs. Certain children learn better in particular environments or require different supports.
Religious or cultural preference. Many private schools have a religious affiliation which may be especially important to a family.
The cost of attending a private school
Private schools are funded by private companies and by the banks of moms and dads!
According to Private School Review, the average cost of tuition for private school is $11,004. Breaking this down even further, the average tuition for private elementary school is $9,900 per year. The average tuition for private high school is $14,711 per year.
Of course, the cost will also depend on where you live. If you’re located in Connecticut or Massachusetts I’m sorry to say you will be paying the highest private school tuition rates at over $24,000 per year (ouch).
If you look into private schools associated with the National Association of Independent Schools (NAIS), the cost of tuition is even higher. The average day tuition for a NAIS school sits at $26,866 for the 2019-2020 school year.
If you want to send your little one off to boarding school at a NAIS school, the five-day average is $46,475, and the average for a seven-day boarding school is $60,600. Wowza, that kid better get into Harvard…am I right?
Other costs associated with private school
When it comes to the cost of sending your child to private school, tuition cost is just one piece of the puzzle. You should also consider:
Uniforms.
Extracurricular activities.
Gas money. (this could get pricey if you have a long daily commute to and from school)
The cost of keeping up with the Joneses. A lot of wealthy families send their kids to private schools. This means you might be dealing with kids that have a lot and, in turn, your kids will want to keep up. Of course, it’s up to you to manage your children’s expectations but be prepared to have this conversation.
How to minimize costs
If you want your children to attend private school because of the smaller class sizes or specific programs being offered, you can look into financial aid to see if you qualify. If cost is an issue you can also consider religious vs. secular private schools, as religious private schools tend to be cheaper.
Public school
The majority of elementary and secondary students in the U.S. are enrolled in public schools. Public schools can be a great option for families for a number of different reasons including:
Cost. I mean you can’t beat free, right?
Availability. All children in the U.S. have access to a free public education.
Diversity. Public schools are often more diverse in terms of ethnicity and socioeconomic status.
The cost of attending public school
The average cost of public school education per student (pre K through to grade 12) in the U.S. is $13,440. The cost of a public school education is covered by funding from the government at the federal, state, and local levels.
While you don’t have to write out a check to pay for your children’s public education, don’t be mistaken, you are still paying. Payment comes in the form of taxes!
So, while you won’t have to dish out thousands of dollars for tuition, you will pay in other ways. Yay!
Of course, if you already live in a home that is located in a great school district then you probably won’t worry about your property taxes in relation to your kids’ education!
Other costs to consider
School supplies and clothing. In 2019 American households planned to spend an average of $696.70 on back to school shopping. This included school supplies, clothes, shoes, and electronics.
Tutoring. According to tutors.com, the average hourly price of a private tutor ranges between $25 – $80 per hour.
Field trips. Any special trips outside of the school walls are going to cost you. It’s estimated that the average expense for field trips and extra activities at the elementary level ranges from $10 to $3,500.
How to minimize costs
Shop the back to school sales. This can apply to clothes, shoes, and electronics. You can check out whether or not your state has a sales tax holiday that is specifically geared at back to school purchases. You can check out if your state offers a sales tax holiday and when it is on the Sales Tax Institute website.
Buy used. If you are trying to keep costs down then consider going to a consignment store to buy used clothing or shoes. This can be especially useful for younger kids who seem to grow out of their stuff every few months.
Charter schools
Charter schools are a type of public school and while they share some characteristics with a regular public school, they also have their differences.
How are charter schools and public schools similar?
Both publicly funded.
Both offer free tuition.
How are charter schools and public schools different?
Run by independent groups while regular public schools are governed by the school board and school district.
Charter schools don’t have to follow the same rules and regulations as regular public schools. They enjoy a greater sense of freedom and flexibility when it comes to their curriculum and even their school hours.
Students usually have to apply to get into a charter school. If there are not enough spots for all of the applicants then a lottery is held.
Charter schools often come to fruition in an effort to achieve a specific goal
You don’t have to live in a particular district to go to a charter school. If you can get yourself there, and you’ve been accepted, then you can go.
The cost of attending a charter school
As I already mentioned, the cost of a charter school is the same as a public school, it’s free!
Other costs to consider
There’s not much new to consider here. It’s the same costs associated with a regular public school – you know, school supplies, clothes, and potentially some tutoring and field trips. However, if you get into a charter school that is super far away from where you live then you’ll also want to consider the amount of gas you’re going to be needing for your commute.
Homeschooling
With the current state of the world, I wouldn’t be surprised to see an influx in the number of children being homeschooled. Or maybe, all of the parents who temporarily had to step in to play the role of teacher have been scared off for good!
Regardless, homeschooling is another option and one that accounts for approximately 2.5 million students from kindergarten to grade 12.
Homeschooling is pretty self-explanatory – it’s schooling your kids at home. There are several reasons that a family might choose this as an option including:
Other school options were not a good fit for their child.
The family has a specific religious background that will direct the way they teach.
Similarly, they might have a particular educational philosophy that they want to follow.
Some parents might feel that it is safer to teach their children from home.
Your child has special needs.
The cost of homeschooling
Obviously, when it comes to homeschooling there will be no hefty tuition. However, there are still many costs associated with this form of schooling. According to the National Home Education Research Institute (NHERI), families who homeschool spend an annual average of $600 per student.
Other costs associated with homeschooling
Homeschooling is different from the other school options I’ve covered in this story because you will be the teacher and you will be teaching out of your home. So, you have to consider all of the costs associated with that task of teaching such as purchasing a curriculum, unless you decide to create your own.
You will also need to ensure that your students have all of the tools they need to learn. This could include:
Textbooks.
Laptops.
Wifi.
Craft supplies.
Science experiment supplies.
Pens and paper.
Comfy chair to sit in and desks to work at.
Use your imagination – you can see how your costs could get out of control if you didn’t have a strict budget!
Cost of being home
Then there is the cost associated with having your children at home most of the time. This could increase your heating or cooling bills, your water bill, and most definitely the food bill.
Extracurriculars
What about extracurriculars? If your kids have been at home all day then they could probably use a dose of socialization (or socially distanced socialization) — depending on the times! Extracurricular activities can get expensive so make sure you consider this.
Field trips
Also, if you want to take your students on any field trips, that’s going to be coming out of your wallet. And, because your class sizes are probably pretty small you likely won’t be getting a volume discount at your local science center or zoo.
Personal development
Unless you come from a background in education, you might want to consider some teaching classes to improve your pedagogical skills.
Opportunity costs
If you really want to think about the cost of homeschooling from all angles you also want to consider your opportunity costs. What are you giving up to homeschool your kids? Are you giving up a lucrative career or a job that you’re truly passionate about? Is it worth it to you?
On the flip side, maybe homeschooling your littles and spending tons of time with them is what you are passionate about.
Your sanity
Last by not least. What is your sanity worth? Are you mentally prepared to take on the role of teacher with your children? Again, this will depend on a number of factors including whether or not you want to take on this role or you feel it is your obligation due to…oh, I don’t know, a worldwide pandemic.
How to minimize costs
Look for free publicly-funded curriculums online.
Borrow books from the library instead of purchasing new.
Use free online resources for teaching (we all know there’s a ton of good info available on YouTube and blogs).
If you plan to go on the same field trip several times (e.g. local science center) then consider buying a family pass instead of purchasing individual tickets for each visit.
How to save for your kids education
If you know you want your kids to attend private school and your bank is not overflowing with money, then it’s important to start saving as early as possible. In fact, you might want to consider saving while your kids are still babies, or even when you start thinking about having kids. It sounds crazy but private school is expensive.
While private school is the most expensive when it comes to out of pocket tuition, each type of school has costs associated with it. There is no free education.
If you want to start putting some money into savings for your kids education, be it tuition or back to school clothes, you can check out Chime®. Chime is a great option for those who like to bank digitally as it operates online and offers both checking and savings accounts. *
Chime is a good place to keep savings associated with your kids schooling because they offer 2.00% APY. 7 So, instead of earning nothing back if you just leave this money sitting in a checking account, you will at least be earning some interest.
* Chime is a financial technology company, not a bank. Banking services provided by The Bancorp Bank, N.A. or Stride Bank, N.A., Members FDIC. 7 The Annual Percentage Yield (“APY”) for the Chime Savings Account is variable and may change at any time. The disclosed APY is effective as of November 17, 2022. No minimum balance required. Must have $0.01 in savings to earn interest.
Do people who attend one type of school perform better?
If you’re a parent then you know that there are virtually an endless number of ways that you can screw up your kids. You give them too much attention as babies – hello attachment issues. You let them see a screen before they are 10 – ugh, how could you. You put them into public school instead of spending your grocery money on private school – do you even care about your children?
The question is, do people who attend one type of schooling perform better and then make more money as adults?
Private vs. public
In a longitudinal study published in 2018, researchers found that kids (K to 9th grade) in private school perform better academically, socially, and psychologically then kids who attend public schools. However, when you control for sociodemographic factors that typically direct which students are able to go to a private school ( a.k.a how much money your parents make) “all of the advantages of private school were eliminated.”
The study also reported that “there was no evidence to suggest that low-income children or children enrolled in urban schools benefited more from private school enrollment.”
Public vs. charter
The National Assessment of Education Progress (NAEP) evaluates students’ academic achievement at grade four, eight, and 12 levels in both private and public schools across the country. In 2017 they compared the reading and math test scores of grade eight students from traditional public schools and charter schools and found no measurable difference. (Note that these results were observed after controlling for parents’ educational attainment).
Anecdotally, I know a lot of super amazing, smart, successful, and kind people who graduated from public school. I too graduated from public school and I hold no resentment towards my parents for not putting me in a private, charter, or homeschooling situation.
Public vs. homeschooling
According to NHERI, homeschooled students “score above average on achievement tests regardless of their parents’ level of formal education or their family’s household income.”
However, an article in the Studies in Educational Evaluation Journal proposes that comparing academic achievement in public school to academic achievement in homeschool is not comparing apples to apples. The study suggests that this is because it’s hard to know if the evaluation methods used to determine academic achievement in a homeschool environment are compatible with the teaching and education occurring within that context.
So, when it comes to which is “better” academically or performance-wise the answer is murky at best. It depends more on what is the right fit for your child.
Do people who attend one type of school make more money as adults?
Honestly, when researching the answer to this question you can find evidence to support each type of schooling. Proponents of private school will give you evidence to suggest that your child will have a higher earning potential if they go private. Proponents of public and charter schools will have their own evidence to suggest that a public education is the way to reach success, as will the homeschoolers.
What’s important to remember is that your children’s school is one variable in their lives. You want to know two variables that are more likely to contribute to your child’s future earning potential – their socioeconomic background (how much money do their parents make) and their parents’ educational level (high school degree vs. master or doctorate).
As a parent, I get that we all want to do right by our children. But, when it comes to trying to predict their future earning potential I have to stop and shake my head. Yes, we want our kids to find financial security but when it comes to their education shouldn’t we be more worried about finding a school that supports their learning style, challenges their amazing aptitude for curiosity, and encourages them to see the beauty in diversity and new ideas?
And, if you feel bad because you live in a not-so-stellar school district and don’t have the means to relocate, remember this. School in the traditional sense of the word is just one way that you learn. There are so many other ways to encourage your children’s development and challenge their curiosity. Bring home mountains of free library books and teach them the joy of reading. Take them outside in nature and explore, you can even use YouTube to learn about new places and cultures.
Is the cost of each type of school worth it?
Now I hope you’re armed with a lot more information when it comes to evaluating which type of school is best for your kids and your family. There is no one size fits all solution when it comes to school. Every kid is different, the way they learn is different, the schools are different, the teachers are different. There are simply too many variables to say which one is better, or worth more than the other. What you value is ultimately going to be different than what I value.
When it comes to finding the right fit, this is a mental calculation you will have to perform with your family. If you’re struggling to choose between all of the options the first question you can ask yourself is, “can I afford private school?” If you have to choose between paying your child’s tuition and keeping the lights on in your house, maybe private school isn’t the right choice.
Summary
When deciding on which type of school to send your child to, remember, based on the research, your kids will have the opportunity to succeed in life regardless of the type of school they go to. There are many things that are more likely to improve your kids’ chances of success and a better financial outcome – like having a loving parent and someone they can consistently count on.
United Airlines has established a strong presence in Japan, offering nonstop flights from all its hubs. Additionally, United has a close partnership with All Nippon Airways, which operates flights within Japan and to numerous global destinations.
One valuable aspect of the United-ANA partnership is the ability to use United MileagePlus miles to book flights within Japan. This option is particularly beneficial if you need to book last-minute tickets or fly on peak travel dates. With MileagePlus, you can book many flights within Japan for just 5,500 miles and minimal taxes and fees.
After United increased many of its global award rates in spring 2023, this untouched sweet spot is a great way to maximize your United miles.
Why it’s special
As mentioned, you can use United miles to book intra-Japan flights for as little as 5,500 miles one-way.
This low mileage rate can provide great value. For instance, an ANA-operated flight from Tokyo’s Haneda Airport (HND) to Hiroshima Airport (HIJ) starts at $114 for a one-way ticket on Aug. 14.
But you can buy this same flight for 5,500 miles plus $2.60, providing a redemption rate of around 2 cents per United mile. That’s nearly double our valuation of United miles.
The same goes for other routes. For example, on some dates, a one-way ANA ticket from Sapporo’s New Chitose Airport (CTS) to Osaka’s Kansai International Airport (KIX) costs over $150.
Both routes — and nearly every other short-haul ANA domestic route in Japan — can be booked for 5,500 miles and minimal taxes and fees one-way in economy. Award space is generally plentiful, so you can book these award flights on most dates if you’re flexible regarding your departure time.
You’ll pay more miles when booking within 21 days of departure. For example, the same Tokyo-to-Osaka award a week from departure costs 6,000 United miles. This isn’t a significant increase, but it’s worth noting.
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And some longer routes within Japan cost more miles. For example, this flight from Tokyo to Okinawa’s Naha Airport (OKA) costs 8,800 miles one-way. Given that airfare is typically over $200 on this route, this is still a great way to maximize your miles.
Related: The best ways to travel to Japan with points and miles
How to book this award
To book intra-Japan flights using United miles, go to United.com. Log in to your account, and enter your search criteria on the homepage. Select the option “Book with miles” to access award prices. If your dates are flexible, you can tick the “Flexible dates” box, which allows you to view a month’s worth of award availability all at once.
You’ll see all available flight options at the center of the screen. Plus, you can see a week’s worth of award pricing at the top of the screen. Completing your reservation is straightforward from this point.
Related: How United’s current credit card offers can help you qualify for Premier status
How to earn miles for this award
It’s relatively easy to earn United miles. Here’s a look at some of the current cobranded United credit card offers:
United Explorer Card: Earn 60,000 bonus miles after you spend $3,000 on purchases in the first three months your account is open.
United Quest Card: Earn 70,000 bonus miles and 500 Premier qualifying points after you spend $4,000 on purchases in the first three months your account is open.
United Club Infinite Card: Earn 80,000 bonus miles and 1,000 PQPs after you spend $5,000 on purchases in the first three months your account is open.
You can also transfer Chase Ultimate Rewards points to United at a 1:1 ratio. Here’s a look at some of the best Chase cards and their respective welcome bonuses:
You can also transfer Marriott Bonvoy points to United at a 3:1 ratio. However, we usually recommend saving your Marriott points for stays or other transfer partners.
Related: How to redeem Chase Ultimate Rewards points for maximum value
Bottom line
This straightforward United sweet spot can help you save money on domestic airfare in Japan. Redeeming United miles for ANA-operated flights within Japan can provide flexibility to explore different parts of the country and experience more of what Japan offers. So, keep this valuable option in mind for your next visit.
According to a weekly survey of 100+ lenders by Freddie Mac, the average mortgage interest rates increased week over week — 30-year fixed rates went up (6.67% to 6.71%) as did 15-year fixed rates (6.03% to 6.06%).
VA rates are no different. In fact, when compared to other loan types — conventional and FHA, for example — VA home loans offer consistently lower rates than for the average consumer.
Shop and compare your personalized rates with multiple lenders (Jul 3rd, 2023)
VA Mortgage Rates 2023
VA
Conventional
FHA
May 2023
6.22%
6.43%
6.49%
April 2023
6.03%
6.34%
6.35%
March 2023
5.96%
6.27%
6.22%
February 2023
6.17%
6.36%
6.36%
January 2023
6.56%
6.81%
6.66%
December 2022
6.62%
6.90%
6.73%
Source: Economic Research Federal Reserve Bank of St. Louis
How to find your lowest interest rate
The interest rate available to you will depend on the specifics of your financial situation. Shopping for the best interest rate isn’t just a matter of looking at the rates lenders have posted online because those rates won’t necessarily be available to all borrowers.
The rate lenders can offer you will depend on:
Your credit score and credit history
The size of your down payment or existing equity
Your loan-to-value ratio (LTV)
Your debt-to-income ratio (DTI)
You will need to fill out a loan application to find out what interest rate the lender can offer you. After the lender has verified your financial information, they can give you a quote for an interest rate that reflects your financial situation.
It’s best to get at least three to five of these quotes and compare them. You should look for the lowest interest rate — but you’ll also want to consider APR and estimated closing costs.
Shopping around for the best mortgage rate available to you can help you to save thousands of dollars over the life of your mortgage.
What does it mean to “lock” a mortgage rate?
A mortgage lock involves a commitment by you and your lender. When you request a lock, your lender agrees to give you that rate, even if interest rates increase. On the other hand, you are also making a commitment to close at that rate, even if interest rates fall.
What does it cost to lock your rate?
The longer your rate lock, the higher the risk to the mortgage lender, which means you’ll pay to lock a mortgage rate. With most lenders, the standard lock period is 30 days. They quote rates assuming a 30-day lock.
By locking 7 to 15 days before closing, you will typically get better pricing. For instance, one national lender’s rate sheet charges .15 percent more for a 30-day lock than it does for a 15-day lock, and .25 percent more for a 45-day lock.
For a $300,000 home loan, it would cost an extra $750 to lock a rate for 45 days instead of 15.
The cost can get even higher if you choose to lock your rate for 60 days or more.
What about “free” rate lock?
When lenders were experiencing very high volume, refinance processing suffered. Purchases get priority with most lenders, and refinance transactions can end up on the back burner.
This can result in “blown locks” for refinances. To counter this and avoid angering customers, some lenders offered “free” locks of up to 90 days. However, they weren’t really free, because the rate for those loans was slightly higher than it was for purchases.
When you get mortgage quotes for a refinance or purchase, make sure you know what lock period you’re getting on your quote. That way you can make a valid comparison.
When should I lock in my mortgage rate?
The best strategy for locking in your mortgage rate will depend on a couple of factors and your own preferences. You have a few options. There are three schools of thought about locking in a mortgage rate.
Some borrowers like to “set and forget” their rate, and they are averse to risking a higher rate in order to perhaps obtain a lower one. These borrowers are likely to lock their rate when they see an acceptably low rate.
Other borrowers are willing to take a little more risk for the chance of getting a lower rate — watching rates carefully to see if they drop.
Finally, there are the ones who want it all. These borrowers buy a “float down” option, which allows them to lock in a rate, protecting them from potential rate increases. However, if interest rates fall while their loan is in process, they can get a lower rate.
Float downs: Know what you’re buying
There are rules for float downs. Some lenders only let you exercise the float down option the day they draw your closing documents. Others allow you to lock in a lower rate anytime during the process.
Still, others require the new rate to be at least a certain percentage lower than your locked rate before they let you switch — typically .125 to .25 percent.
Read your documents carefully, and understand what a float down will cost you since these agreements are not standardized.
Find the right mortgage rate for you
Ultimately, the best mortgage rate for you is going to depend on the circumstances of your financial situation and market conditions. By comparing your options and speaking to different lenders, you can ensure that you’re getting the right mortgage. for your home goals.
Shop and compare your personalized rates with multiple lenders (Jul 3rd, 2023)
Still in the dark about how to make money online? Side hustles are all the rage, but not everyone has tried one. You’re a beginner, and that can be the case at any age.
The internet has opened up a lot of ways to make side money, but so many options can be overwhelming. That’s why we say to do a little personal discovery first to decide what you like. Then dive in with a positive attitude and flexible mindset. Because the money is out there, but it isn’t guaranteed.
Here are four steps to get you started.
Step 1: Take inventory of your skills
The term “side hustle” assumes you already have a full-time obligation, like a job, school or family responsibilities. If you’re going to spend your precious few hours of free time on another form of work, you ought to do something you enjoy. Start with a personal assessment of your interests and emphasize the ones with online earning potential. Grab a piece of paper and jot down your answers to these questions:
What do I like to do the most? Consider the hobbies, interests and activities that bring you joy, but add a work slant because you probably won’t get paid to watch videos.
Of the interests listed, which ones do I do well? Narrow down your initial list to the areas where you have the most skill. Do you write well? Do you know the ins and outs of a certain category of collectible merchandise?
What kind of work would I be happy doing for hours on end? Make sure going all in on a potentially paying hobby won’t make you hate it.
Step 2: Focus on monetizable skills and ideas
Did you identify any skills with earning potential? You can probably answer this with common sense. You’re more likely to be paid to design a logo than make a meme.
Do you know how to code and do you like it? How about writing website copy, articles or marketing emails? You might have a future in freelancing, and that’s a side hustle tailor-made for making money online.
Maybe you listed vintage fashion as a top interest, and you know more than most about clothes. Do you like selling stuff and communicating with potential customers, too? Because reselling clothes is a way to monetize a hobby (and support a habit) from your laptop. If you have crafts or bespoke products to sell, you could open an Etsy shop online.
Once you match a passion, skill or idea with a monetizable opportunity, you can find the right online service or platform to facilitate your business.
Track all the money you make
See the ins and outs of your cash, cards, and bank accounts at a glance.
Step 3: Research the top places to make money online
There are plenty of online platforms that can connect you with customers, gigs and tasks. The hard part is narrowing the list down to the ones that are worth your time. We can help you focus on real ways to make money online (and offline, for that matter) and explore home business ideas. The work you did in the skills inventory step should help you quickly eliminate the noncontenders.
Be realistic about how much you can make
Once you pick a skill and a platform, you can give your online side hustle a try. How much money you’ll make (and when it comes) will vary.
Online freelance work may take time to gain traction, but you can pick a site like Upwork or Fiverr that connects you with paying clients and post your pitch today.
Places to sell stuff online typically have few barriers to entry, which is great for beginners. But make sure profit margins are worth your time. Selling a used book on eBay for $7.50 won’t amount to much side money when you factor in fees and shipping.
Using an online service to get task-based work can be a way for a beginner to make real money with less wait time. Depending on where you live, quick gigs like driving people or delivering packages and groceries can be in high demand. And signing up for gigs through a service like Uber or Instacart can connect you with customers and have you driving in no time.
Walking dogs is one of the highest paid side hustles by average hourly wage, according to an analysis from online tutoring platform Preply. Rover and Wag are two sites that match dog walkers with paying customers.
Other ways may require more patience
Some popular ways to make money online, like starting a blog, making YouTube videos or sharing influential advice on social media can require a lot of effort and time before you’ll see a dime. Don’t let us discourage you from your dreams of content creator stardom, but influencers typically need a sizable following to see big money.
Step 4: Evaluate and pivot
Flexibility is key when it comes to making money online. Give it a couple of weeks (or months) and evaluate your progress. If the dough is low, you might need to adjust your approach or switch to another platform. Maybe it’s time to pivot to a different monetizable hobby. Go back to your skills inventory and give something else a try. Enjoy the experience, and don’t quit your day job.
Average mortgage rates fell just a little last Friday. But last Thursday’s massive jump means they finished that week — and last month — higher than when they started them.
First thing, it was looking as if mortgage rates today might again barely budge. But that could change as the hours pass.
Markets will be closed tomorrow for the Independence Day holiday. And we’ll be back on Wednesday morning. Enjoy your celebrations!
Current mortgage and refinance rates
Program
Mortgage Rate
APR*
Change
Conventional 30-year fixed
7.129%
7.158%
Unchanged
Conventional 15-year fixed
6.638%
6.651%
Unchanged
Conventional 20-year fixed
7.506%
7.558%
Unchanged
Conventional 10-year fixed
6.997%
7.115%
Unchanged
30-year fixed FHA
6.672%
7.303%
Unchanged
15-year fixed FHA
6.763%
7.237%
Unchanged
30-year fixed VA
6.729%
6.937%
Unchanged
15-year fixed VA
6.625%
6.965%
Unchanged
5/1 ARM Conventional
6.75%
7.266%
Unchanged
5/1 ARM FHA
6.75%
7.532%
+0.11
5/1 ARM VA
6.75%
7.532%
+0.11
Rates are provided by our partner network, and may not reflect the market. Your rate might be different. Click here for a personalized rate quote. See our rate assumptions See our rate assumptions here.
Should you lock a mortgage rate today?
Recent reporting in the financial media makes me think mortgage rates are unlikely to see any significant and sustained falls until at least the fourth (Oct.-Dec.) quarter of 2023 and probably not until 2024.
And that’s why my personal rate lock recommendations remain:
LOCK if closing in 7 days
LOCK if closing in 15 days
LOCK if closing in 30 days
LOCK if closing in 45 days
LOCK if closing in 60days
However, with so much uncertainty at the moment, your instincts could easily turn out to be as good as mine — or better. So let your gut and your own tolerance for risk help guide you.
>Related: 7 Tips to get the best refinance rate
Market data affecting today’s mortgage rates
Here’s a snapshot of the state of play this morning at about 9:50 a.m. (ET). The data, compared with roughly the same time last Friday, were:
The yield on 10-year Treasury notes edged down to 3.82% from 3.85%. (Good for mortgage rates.) More than any other market, mortgage rates typically tend to follow these particular Treasury bond yields
Major stock indexes were mostly lower. (Good for mortgage rates.) When investors buy shares, they’re often selling bonds, which pushes those prices down and increases yields and mortgage rates. The opposite may happen when indexes are lower. But this is an imperfect relationship
Oil prices inched up to $70.61 from $70.25 a barrel. (Neutral for mortgage rates*.) Energy prices play a prominent role in creating inflation and also point to future economic activity
Goldprices rose to $1,930 from $1,919 an ounce. (Neutral for mortgage rates*.) It is generally better for rates when gold prices rise and worse when they fall. Gold tends to rise when investors worry about the economy.
CNN Business Fear & Greed index — climbed to 84 from 80 out of 100. (Bad for mortgage rates.) “Greedy” investors push bond prices down (and interest rates up) as they leave the bond market and move into stocks, while “fearful” investors do the opposite. So lower readings are often better than higher ones
*A movement of less than $20 on gold prices or 40 cents on oil ones is a change of 1% or less. So we only count meaningful differences as good or bad for mortgage rates.
Caveats about markets and rates
Before the pandemic and the Federal Reserve’s interventions in the mortgage market, you could look at the above figures and make a pretty good guess about what would happen to mortgage rates that day. But that’s no longer the case. We still make daily calls. And are usually right. But our record for accuracy won’t achieve its former high levels until things settle down.
So, use markets only as a rough guide. Because they have to be exceptionally strong or weak to rely on them. But, with that caveat, mortgage rates today might again hold steady or close to steady. However, be aware that “intraday swings” (when rates change speed or direction during the day) are a common feature right now.
Important notes on today’s mortgage rates
Here are some things you need to know:
Typically, mortgage rates go up when the economy’s doing well and down when it’s in trouble. But there are exceptions. Read ‘How mortgage rates are determined and why you should care’
Only “top-tier” borrowers (with stellar credit scores, big down payments, and very healthy finances) get the ultralow mortgage rates you’ll see advertised
Lenders vary. Yours may or may not follow the crowd when it comes to daily rate movements — though they all usually follow the broader trend over time
When daily rate changes are small, some lenders will adjust closing costs and leave their rate cards the same
Refinance rates are typically close to those for purchases.
A lot is going on at the moment. And nobody can claim to know with certainty what will happen to mortgage rates in the coming hours, days, weeks or months.
What’s driving mortgage rates today?
Currently
To see sustained lower mortgage rates we need to see the inflation rate halving, the economy weakening, and the Federal Reserve stopping hiking general interest rates. And none of those looks likely anytime soon.
Some progress is being made on inflation. But not enough.
And the economy is showing extraordinary resilience. Last week’s gross domestic product (GDP) headline figure was 50% higher than many expected.
Meanwhile, the Fed seems highly likely to hike general interest rates by 25 basis points (0.25%) on Jul. 26. And there may well be at least one more increase after that in 2023.
Recession
As I’ve written before, our best hope for lower mortgage rates is a recession. That should weaken the economy, reduce inflation and perhaps cause the Fed to at least hold general rates steady.
Economists have been predicting an imminent recession for ages. And, not so long ago, I bought that line and was expecting one at any moment.
But, now, many big hitters aren’t expecting a recession until 2024. Yesterday, CNN Business listed a few of those making that prediction:
Bank of America CEO Brian Moynihan
Vanguard economists
JPMorgan Chase economists
Of course, others disagree, as economists always do. Some think a recession will still land later this year. And others believe there will be no recession at all.
This week
There are a few reports this week that could send mortgage rates up or down a bit. But Friday’s jobs report is the one most likely to have a decisive impact.
The consensus among economists is that the report will show 240,000 new jobs created in June compared with 339,000 in May. Anything lower than 240,000 might see mortgage rates tumble, which would be great.
However, we’ve witnessed economists making similar predictions for employment several times over recent months. And, nearly every time, their forecasts have greatly underestimated the resilience of the American labor market and therefore the American economy.
Of course, they might be right this time. Let’s hope so. But I shouldn’t hold my breath if I were you.
Please read the weekend edition of this daily report for more background on what’s happening to mortgage rates.
Recent trends
According to Freddie Mac’s archives, the weekly all-time low for mortgage rates was set on Jan. 7, 2021, when it stood at 2.65% for conventional, 30-year, fixed-rate mortgages.
Freddie’s Jun. 29 report put that same weekly average at 6.71%, up from the previous week’s 6.67%. But Freddie is almost always out of date by the time it announces its weekly figures.
In November, Freddie stopped including discount points in its forecasts. It has also delayed until later in the day the time at which it publishes its Thursday reports. Andwe now update this section on Fridays.
Expert mortgage rate forecasts
Looking further ahead, Fannie Mae and the Mortgage Bankers Association (MBA) each has a team of economists dedicated to monitoring and forecasting what will happen to the economy, the housing sector and mortgage rates.
And here are their rate forecasts for the current quarter (Q2/23) and the following three quarters (Q3/23, Q4/23 and Q1/24).
The numbers in the table below are for 30-year, fixed-rate mortgages. Fannie’s were published on May 23 and the MBA’s on Jun. 21.
In the past, we included Freddie Mac’s forecasts. But it seems to have given up on publishing those.
Forecaster
Q2/23
Q3/23
Q4/23
Q1/24
Fannie Mae
6.4%
6.2%
6.0%
5.8%
MBA
6.5%
6.2%
5.8%
5.6%
Of course, given so many unknowables, the whole current crop of forecasts might be even more speculative than usual. And their past record for accuracy hasn’t been wildly impressive.
Find your lowest rate today
You should comparison shop widely, no matter what sort of mortgage you want. Federal regulator the Consumer Financial Protection Bureau found in May 2023:
“Mortgage borrowers are paying around $100 a month more depending on which lender they choose, for the same type of loan and the same consumer characteristics (such as credit score and down payment).”
In other words, over the lifetime of a 30-year loan, homebuyers who don’t bother to get quotes from multiple lenders risk losing an average of $36,000. What could you do with that sort of money?
Mortgage rate methodology
The Mortgage Reports receives rates based on selected criteria from multiple lending partners each day. We arrive at an average rate and APR for each loan type to display in our chart. Because we average an array of rates, it gives you a better idea of what you might find in the marketplace. Furthermore, we average rates for the same loan types. For example, FHA fixed with FHA fixed. The end result is a good snapshot of daily rates and how they change over time.
How your mortgage interest rate is determined
Mortgage and refinance rates vary a lot depending on each borrower’s unique situation.
Factors that determine your mortgage interest rate include:
Overall strength of the economy — A strong economy usually means higher rates, while a weaker one can push current mortgage rates down to promote borrowing
Lender capacity — When a lender is very busy, it will increase rates to deter new business and give its loan officers some breathing room
Property type (condo, single-family, town house, etc.) — A primary residence, meaning a home you plan to live in full time, will have a lower interest rate. Investment properties, second homes, and vacation homes have higher mortgage rates
Loan-to-value ratio (determined by your down payment) — Your loan-to-value ratio (LTV) compares your loan amount to the value of the home. A lower LTV, meaning a bigger down payment, gets you a lower mortgage rate
Debt-To-Income ratio — This number compares your total monthly debts to your pretax income. The more debt you currently have, the less room you’ll have in your budget for a mortgage payment
Loan term — Loans with a shorter term (like a 15-year mortgage) typically have lower rates than a 30-year loan term
Borrower’s credit score — Typically the higher your credit score is, the lower your mortgage rate, and vice versa
Mortgage discount points — Borrowers have the option to buy discount points or ‘mortgage points’ at closing. These let you pay money upfront to lower your interest rate
Remember, every mortgage lender weighs these factors a little differently.
To find the best rate for your situation, you’ll want to get personalized estimates from a few different lenders.
Are refinance rates the same as mortgage rates?
Rates for a home purchase and mortgage refinance are often similar.
However, some lenders will charge more for a refinance under certain circumstances.
Typically when rates fall, homeowners rush to refinance. They see an opportunity to lock in a lower rate and payment for the rest of their loan.
This creates a tidal wave of new work for mortgage lenders.
Unfortunately, some lenders don’t have the capacity or crew to process a large number of refinance loan applications.
In this case, a lender might raise its rates to deter new business and give loan officers time to process loans currently in the pipeline.
Also, cashing out equity can result in a higher rate when refinancing.
Cash-out refinances pose a greater risk for mortgage lenders, so they’re often priced higher than new home purchases and rate-term refinances.
How to get the lowest mortgage or refinance rate
Since rates can vary, always shop around when buying a house or refinancing a mortgage.
Comparison shopping can potentially save thousands, even tens of thousands of dollars over the life of your loan.
Here are a few tips to keep in mind:
1. Get multiple quotes
Many borrowers make the mistake of accepting the first mortgage or refinance offer they receive.
Some simply go with the bank they use for checking and savings since that can seem easiest.
However, your bank might not offer the best mortgage deal for you. And if you’re refinancing, your financial situation may have changed enough that your current lender is no longer your best bet.
So get multiple quotes from at least three different lenders to find the right one for you.
2. Compare Loan Estimates
When shopping for a mortgage or refinance, lenders will provide a Loan Estimate that breaks down important costs associated with the loan.
You’ll want to read these Loan Estimates carefully and compare costs and fees line-by-line, including:
Interest rate
Annual percentage rate (APR)
Monthly mortgage payment
Loan origination fees
Rate lock fees
Closing costs
Remember, the lowest interest rate isn’t always the best deal.
Annual percentage rate (APR) can help you compare the ‘real’ cost of two loans. It estimates your total yearly cost including interest and fees.
Also pay close attention to your closing costs.
Some lenders may bring their rates down by charging more upfront via discount points. These can add thousands to your out-of-pocket costs.
3. Negotiate your mortgage rate
You can also negotiate your mortgage rate to get a better deal.
Let’s say you get loan estimates from two lenders. Lender A offers the better rate, but you prefer your loan terms from Lender B. Talk to Lender B and see if they can beat the former’s pricing.
You might be surprised to find that a lender is willing to give you a lower interest rate in order to keep your business.
And if they’re not, keep shopping — there’s a good chance someone will.
Fixed-rate mortgage vs. adjustable-rate mortgage: Which is right for you?
Mortgage borrowers can choose between a fixed-rate mortgage and an adjustable-rate mortgage (ARM).
Fixed-rate mortgages (FRMs) have interest rates that never change, unless you decide to refinance. This results in predictable monthly payments and stability over the life of your loan.
Adjustable-rate loans have a low interest rate that’s fixed for a set number of years (typically five or seven). After the initial fixed-rate period, the interest rate adjusts every year based on market conditions.
With each rate adjustment, a borrower’s mortgage rate can either increase, decrease, or stay the same. These loans are unpredictable since monthly payments can change each year.
Adjustable-rate mortgages are fitting for borrowers who expect to move before their first rate adjustment, or who can afford a higher future payment.
In most other cases, a fixed-rate mortgage is typically the safer and better choice.
Remember, if rates drop sharply, you are free to refinance and lock in a lower rate and payment later on.
How your credit score affects your mortgage rate
You don’t need a high credit score to qualify for a home purchase or refinance, but your credit score will affect your rate.
This is because credit history determines risk level.
Historically speaking, borrowers with higher credit scores are less likely to default on their mortgages, so they qualify for lower rates.
For the best rate, aim for a credit score of 720 or higher.
Mortgage programs that don’t require a high score include:
Conventional home loans — minimum 620 credit score
FHA loans — minimum 500 credit score (with a 10% down payment) or 580 (with a 3.5% down payment)
VA loans — no minimum credit score, but 620 is common
USDA loans — minimum 640 credit score
Ideally, you want to check your credit report and score at least 6 months before applying for a mortgage. This gives you time to sort out any errors and make sure your score is as high as possible.
If you’re ready to apply now, it’s still worth checking so you have a good idea of what loan programs you might qualify for and how your score will affect your rate.
You can get your credit report from AnnualCreditReport.com and your score from MyFico.com.
How big of a down payment do I need?
Nowadays, mortgage programs don’t require the conventional 20 percent down.
In fact, first-time home buyers put only 6 percent down on average.
Down payment minimums vary depending on the loan program. For example:
Conventional home loans require a down payment between 3% and 5%
FHA loans require 3.5% down
VA and USDA loans allow zero down payment
Jumbo loans typically require at least 5% to 10% down
Keep in mind, a higher down payment reduces your risk as a borrower and helps you negotiate a better mortgage rate.
If you are able to make a 20 percent down payment, you can avoid paying for mortgage insurance.
This is an added cost paid by the borrower, which protects their lender in case of default or foreclosure.
But a big down payment is not required.
For many people, it makes sense to make a smaller down payment in order to buy a house sooner and start building home equity.
Choosing the right type of home loan
No two mortgage loans are alike, so it’s important to know your options and choose the right type of mortgage.
The five main types of mortgages include:
Fixed-rate mortgage (FRM)
Your interest rate remains the same over the life of the loan. This is a good option for borrowers who expect to live in their homes long-term.
The most popular loan option is the 30-year mortgage, but 15- and 20-year terms are also commonly available.
Adjustable-rate mortgage (ARM)
Adjustable-rate loans have a fixed interest rate for the first few years. Then, your mortgage rate resets every year.
Your rate and payment can rise or fall annually depending on how the broader interest rate trends.
ARMs are ideal for borrowers who expect to move prior to their first rate adjustment (usually in 5 or 7 years).
For those who plan to stay in their home long-term, a fixed-rate mortgage is typically recommended.
Jumbo mortgage
A jumbo loan is a mortgage that exceeds the conforming loan limit set by Fannie Mae and Freddie Mac.
In 2023, the conforming loan limit is $726,200 in most areas.
Jumbo loans are perfect for borrowers who need a larger loan to purchase a high-priced property, especially in big cities with high real estate values.
FHA mortgage
A government loan backed by the Federal Housing Administration for low- to moderate-income borrowers. FHA loans feature low credit score and down payment requirements.
VA mortgage
A government loan backed by the Department of Veterans Affairs. To be eligible, you must be active-duty military, a veteran, a Reservist or National Guard service member, or an eligible spouse.
VA loans allow no down payment and have exceptionally low mortgage rates.
USDA mortgage
USDA loans are a government program backed by the U.S. Department of Agriculture. They offer a no-down-payment solution for borrowers who purchase real estate in an eligible rural area. To qualify, your income must be at or below the local median.
Bank statement loan
Borrowers can qualify for a mortgage without tax returns, using their personal or business bank account. This is an option for self-employed or seasonally-employed borrowers.
Portfolio/Non-QM loan
These are mortgages that lenders don’t sell on the secondary mortgage market. This gives lenders the flexibility to set their own guidelines.
Non-QM loans may have lower credit score requirements, or offer low-down-payment options without mortgage insurance.
Choosing the right mortgage lender
The lender or loan program that’s right for one person might not be right for another.
Explore your options and then pick a loan based on your credit score, down payment, and financial goals, as well as local home prices.
Whether you’re getting a mortgage for a home purchase or a refinance, always shop around and compare rates and terms.
Typically, it only takes a few hours to get quotes from multiple lenders — and it could save you thousands in the long run.
Current mortgage rates methodology
We receive current mortgage rates each day from a network of mortgage lenders that offer home purchase and refinance loans. Mortgage rates shown here are based on sample borrower profiles that vary by loan type. See our full loan assumptions here.
Unless you come by a huge influx of cash either by winning the lottery or through an inheritance; a mortgage remains the most affordable way to own a home. Among the tools that lenders use to determine your eligibility for a home loan is debt-to-income ratio, or DTI.
The ratio is used to determine how much of your income can go towards monthly mortgage payments as compared to other monthly debts that your income settles. Read on to find out how to calculate DTI and what ranges are desirable according to the industry standards.
What is a Debt-to-income Ratio & How is it Calculated?
A debt-to-income ratio is a number used to measure a person’s ability to manage their debt. This number is calculated using two key pieces of financial information: your debt and your income. By taking your total monthly debt and your total monthly income, which includes any money earned prior to taxes and deductions, you can determine your debt-to-income ratio.
In another example where the total debts are higher than $1,500 and income is still $4,000, you see an increase in the DTI. If you have monthly debt payments equal to $2,000, and your gross monthly income equals $4,000, your debt-to-income ratio will be 50%.
STEP 1. Determine your monthly liabilities. These include:
Monthly Home-related costs – If it is your first mortgage this will be sum of all monthly expenses that go towards paying your rent. It has to be expressed as a monthly amount i.e. if you pay an annual sum then divide it by 12. Similarly if you pay it quarterly, divide by 4. Add in the proposed or expected monthly payment for the mortgage you are considering.
Also included in this will be other housing costs such mortgage insurance, real estate taxes and homeowner’s association payments. In case you are a homeowner in the market for a second mortgage, the monthly payments you make towards your first mortgage will constitute the cost.
Although you could be paying monthly for utilities like power and gas, they are not taken into account in this summation. Same goes for food, health and car insurances, phone bill, your taxes and cable bill.
Monthly loan payments – A sum of all monthly loans that are deducted from your pay and show on your credit report. These include monthly remittances towards car loan, student loan, credit union and personal bank loans.
Monthly credit card payments – This is the sum of minimum payments that you make for each credit card. It excludes credit card debt that you settle monthly in full.
Other monthly obligations – This could be any other line of credit that involves financing. Monthly child support or alimony payments fall under these obligations.
This refers to your total pay before any deductions are made or simply pre-tax pay. This comprises of;
Basic wages or salary.
Bonuses and commissions
Alimony and or child support.
Income from investments (must be verifiable via your tax returns)
Tip: If you draw a salary, bonus or commission annually then divide it by 12 to arrive at its monthly value.
How to Calculate the Front-end Ratio
This is the home-related costs divided by your monthly gross income. It shows the amount of monthly income that can be freed to service the house loan you propose to get. To put this into context, suppose your monthly gross income is $6,000 and total monthly home-related costs are $1,500.
Front-end DTI = ($1500/ $6000) * 100 = 25%
How to Calculate the Back-end ratio
When lenders speak of DTI, this is mostly what they have in mind. It’s a ratio that shows the amount of your income that goes towards settling all your debts. It’s the sum of all monthly debts divided by your monthly gross income. Suppose your total monthly liabilities (including home related costs) in the above example is $2500 then,
Back-end DTI= ($2500/ $6000) *100 = 41%
Standards for Debt-to-income Ratio
A low DTI means that you have more of your income left after paying bills. Back-end ratio of 36% and front-end ratio of 28% or below is considered favorable by most lenders.
Back-end ratios of between 36%-49% translate to less amount left to spend. Lenders will view you as a potential defaulter. You may have to contend with higher interest rates and huge down payments for your loan.
Anything higher than 50% puts you on the red. It means half of your pay is going toward debt payments leaving you with little to spend or even take up a new financial obligation. This greatly reduces your chances of landing a mortgage.
What is the Ideal Debt-to-income Ratio?
If you aren’t thinking about applying for an auto or home loan, opening a credit card account, moving into a new apartment, or doing anything else that requires someone to review your credit and finances, you may not care too much about your DTI. But when you are seeking credit, part of the application process may include a thorough review of your finances. Even though it will vary, every creditor and lender has certain criteria that applicants must meet in order to approve an application, so they might be interested in examining your DTI to determine if you should be approved.
Since this number gives insight into how you manage your debt, specifically your ability to repay your debt, the higher your DTI, the more likely you are to be denied. Creditors will look for borrowers who have a debt-to-income ratio no higher than 43%. This means that if your monthly income is $4,000, your total monthly debt payments should be equal to no more than $1,720. Although 43% is acceptable to most creditors, a lower DTI is even better.
Improving Your Debt-to-income Ratio
If your DTI is above 43%, you have the power to change it. Since your monthly debts and income are the two important factors used to determine your DTI, there are a number of ways you can lower your DTI and get in a better position financially.
If you want to improve your debt-to-income ratio, one thing you can do is reduce the total amount of debt you owe. If you have taken out a loan for $5,000, your monthly loan payment will be included in your debts used to calculate your DTI. By making extra payments on your loan, you will be able to pay off the loan faster and reduce the amount of debt owed.
Additionally, if you want to improve your DTI, you can also avoid adding to your current amount of debt or increase your monthly income by taking on a hiring paying full-time job, part-time job, or gig.
When you’re buying a home, you probably have a million questions that need answering, especially when it comes to getting the proper insurance to protect your investment.
Soon-to-be homeowners may see both title and homeowners insurance on the lending documentation and wonder what the difference is between the two. While both types of insurance can provide vital coverage for homeowners, they differ vastly in their purpose and protection.
What Is Homeowners Insurance?
A homeowners insurance policy protects a home and personal property from loss or damage. It may also provide insurance in the event someone is injured while they are on the property.
Here are some common things homeowners insurance may cover:
• Damage that may occur in the home, garage, or other buildings on the property • Damaged, lost, or stolen personal property, such as furniture • Temporary housing expenses if the homeowner must live elsewhere during home repairs
Depending on the policy, homeowners insurance may also cover:
• Physical injury or property damage to others caused by the homeowner’s negligence • An accident that happens at home, or away from home, for which the homeowner is responsible • Injuries that take place in or around the home and involve any person who is not a family member of the homeowner • Damage or loss of personal property in storage
Some coverage may also apply to lost or stolen money, jewelry, gold, or stamp and coin collections.
Buying Homeowners Insurance
While someone can legally own a home without taking out homeowners insurance, the mortgage loan holder may require the homeowner to purchase an insurance policy. Typically, lenders do require this as a condition of the home loan.
It’s important to understand that homeowners need to insure the home but not the land underneath it. Some natural disasters — tornadoes and lightning, for example — are covered by typical homeowners policies. Floods and earthquakes, however, are not. If you live in an area where floods or earthquakes are common, you may want to consider purchasing extra insurance to cover damages from potential disasters.
Special coverage may also be worthwhile for those who own valuable art, jewelry, computers, or antiques. There are two policy options that can help homeowners replace insured property in the event of damage or a loss. Replacement cost coverage covers the cost to rebuild the home and replace any of its contents, while actual cash value simply pays the current value of the property at the time of experienced loss.
When it comes time to shop for and buy homeowners insurance, start by asking trusted friends, family, or financial advisors for their recommendations. Do some online research, too. Before you make a final decision, contact multiple companies and request quotes in writing to compare their offerings. That process can give you a good idea of who is offering the best coverage for the most affordable price.
Recommended: Is Homeowners Insurance Required to Buy a Home?
What Is Title Insurance?
Title insurance provides protection against losses and hidden costs that may occur if the title to a property has defects such as encumbrances, liens, or any defects unknown when the title policy was first issued.
The insurer is responsible for reimbursing either the homeowner or the lender for any losses the policy covers, as well as any related legal expenses.
Title insurance can protect both the homeowner and lender if the title of the property is challenged. If there is an alleged title defect, which the homeowner may be unaware of at the time of purchase, title insurance can provide protection to cover any losses resulting from a covered claim.
The policy will cover legal fees incurred if there is a claim against the property.
Recommended: How to Read a Preliminary Title Report
Buying Title Insurance
Both home buyers and lenders can purchase title insurance. If the home buyer is the purchaser, they may want to insure the full value of the property. (The value of the property will affect how much the policy costs). When the lender is the purchaser, they typically only cover the amount of the homeowner’s loan. When it comes time for a home buyer to purchase title insurance, they have full choice of the insurer.
According to the Real Estate Settlement Procedures Act (RESPA) of 1974, the seller cannot require the home buyer to purchase title insurance from one certain company.
Lenders are required to provide a list of local companies that provide closing services, of which title insurance is just one. But it may be worth doing independent research. Lenders may not select their recommendations based on the home buyer’s best interest, but instead because a service provider is an affiliate of the lender and provides a financial incentive in exchange for a recommendation.
Again, it’s a smart idea to seek the counsel of friends and family and do online research to uncover competitive prices and learn which service providers have a solid reputation.
Recommended: What Are the Different Types of Mortgage Lenders?
The Takeaway
Homeowners insurance is an ongoing cost (billed monthly, quarterly, or annually) that helps cover damage or loss of the home and possessions within the home. Title insurance, on the other hand, can help protect against losses caused by defects in the title and is a one-time fee payable during the closing process. The advantage to having both types of coverage is that each policy can protect homeowners against financial loss in very different circumstances.
Shopping for homeowners insurance often requires considering several options, from the amount of coverage to the kind of policy to the cost of the premium. To help simplify the process, SoFi has partnered with Lemonade to bring customizable and affordable homeowners insurance to our members.
Lemonade is a name you can trust. It has exceptional ratings, is fully licensed, and reinsured by some of the most trusted names on the planet. Plus, it donates any leftover money to nonprofit partners chosen by customers.
Check out homeowners insurance options offered through SoFi Protect.
SoFi offers customers the opportunity to reach the following Insurance Agents:
Home & Renters: Lemonade Insurance Agency (LIA) is acting as the agent of Lemonade Insurance Company in selling this insurance policy, in which it receives compensation based on the premiums for the insurance policies it sells.
SoFi Mortgages Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility for more information.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
My Upside review takes an in-depth look at the Upside app, which used to be called GetUpside, to help you decide if it’s worthwhile for you to use.
Are fuel prices eating up your budget?
Prices for things have gone up in many areas, especially diesel and gas prices. If you’re looking for ways to save a little bit of money, then I have a new idea that you may not know about yet, and I’m talking about the Upside app.
Upside is an app that helps you find gas stations, groceries, and restaurants where you can earn cash back on regular purchases.
The Upside app, formerly known as GetUpside, is very easy to use. You simply sign up for a free account, and then look at the map in the Upside app to find places near you where you can earn cash back on gas, groceries, and on restaurant meals.
You can earn up to $0.25 per gallon cash back at gas stations, up to 30% back on your grocery purchases, and up to 45% back when you go out to eat at a restaurant.
I did a search on my phone and saw many fuel stations which were offering $0.55 per gallon for diesel cash back, and one that even offered $0.67 cash back per gallon. I should probably tell you that we mostly use diesel for our RV.
With Upside, you can earn cash back at more than 50,000 gas station locations in the United States. This includes many popular fuel stations, such as BP, Shell, Marathon, Phillips 66, RaceTrac, Circle K, and many more.
You won’t earn a ton of money using the Upside app, but you can definitely use it to make a little cash back over the course of the year. For example, if you fill up your fuel tank four times each month and buy 15 gallons each time, at $0.25 per gallon cash back over a 12-month period, you would get $180 cash back.
And that’s for doing something that you already do!
Upside users have already earned over $300,000,000 in cash back since the app was launched, so you know that you can trust them.
You can sign up for Upside for free here. I’m also sharing a special invite code in this Upside review that you can use to earn an extra $0.15 per gallon cash back the first time you use the Upside app. My special invite code is UMN2J.
Related content:
Upside Review
What is Upside?
Upside is a mobile app that was started in January 2016 as GetUpside. It changed names in 2022 and has quickly grown since it launched. Upside partners with gas stations, grocery stores, and restaurants near you that want to get you to visit them by giving you enticing offers.
Upside gives you cash back on both gas purchases and food. Over $1,000,000 is earned by Upside users each week!
Upside works at:
Gas stations: You can get up to $0.25 per gallon cash back on gas at 25,000+ gas stations and convenience stores across the U.S.
Restaurants: You can get up to 45% cash back at 17,000+ restaurants, cafes, fast food places, and more.
Grocery stores: You can get up to 30% cash back on groceries in select cities like Minneapolis, St. Louis, Los Angeles, Chicago, Phoenix, and Raleigh. It’s available in pretty much every major city in the U.S.
It’s available on both the App Store and Google Play. There are over 300,000 great Upside reviews on the App Store alone (average of 4.8 out of 5), so you know this app is a good one!
How does Upside work?
The app is very easy to use, and it only takes about five minutes to sign up and start using. Once you have your account, you simply buy the things you already need and earn real cash each time.
There’s no limit to how much you can earn, and you can still use coupons, discounts, and loyalty programs as well. So you can stack your savings, which is what many Upside app reviews say is their favorite feature!
Here are the steps to get started with Upside:
Sign up for free here.
Connect your cards.
Find and claim your cash back offer through the Upside mobile app.
Pay as usual at the gas station, store, or restaurant.
Submit your receipt or check in.
Receive cash back that you can redeem for actual cash or a digital gift card.
Upside is easy to use as you can see.
You can cash out whenever you want via PayPal cash, gift card, or bank transfer.
How do you get paid on Upside?
The way you get paid is that you cash out whenever you want via PayPal cash, gift card, or bank transfer to your bank account.
Some of the free gift card options include:
Amazon
Apple
CVS
Dunkin Donuts
Lowe’s
Starbucks
Taco Bell
Walmart
Target
Does Upside give money back?
Yes!
You can earn up to $0.25 per gallon cash back at gas stations (even more for diesel!), up to 30% back on grocery purchases, and up to 45% back at restaurants.
They also have a referral program so that you can refer your friends and family and earn even more cash back.
To redeem your cash back through Upside, you can simply go to the Upside app and click on your balance amount in the top right corner. Then click on how you want to redeem your earnings. You can choose “Your bank account,” one of the many gift cards, or PayPal cash.
Upside may charge you a fee if you are cashing out small earnings. The fees include:
Bank account transfer: There is a $1 fee for redemptions less than $10.
PayPal cash: There is a $1 fee for if you redeem less than $15.
Gift card: There is no fee, but some gift cards may have a minimum account that you must put on a gift card.
Now, you can skip the Upside fee if you refer one person and they are actively using Upside.
What gas stations can you use with Upside?
Upside app gas stations include BP, Shell, Circle K, Marathon, Phillips 66, RaceTrac, Speedway, Chevron, Exxon, Conoco, Valero, Casey’s, 76, and more.
How does Upside work for gas?
You open the Upside app, look at the in-app map to see which gas stations are offering cash back, claim your offer in the app, fill up like you normally would, and then take and submit a picture of your receipt.
Does Upside have a gallon limit?
Each cash back offer on the Upside app is valid for up to 50 gallons of gas or diesel.
What grocery stores use Upside?
Grocery stores include Piggly Wiggly, Schnucks, Save a Lot, Gelson’s, Cardenas Markets, Vicente Foods, and more.
You can also use the Upside app for your restaurant purchases at big chains, such as Dairy Queen, Denny’s, Wendy’s, Arby’s, Burger King, Papa John’s, Dunkin Donuts, and more. It does not, however, work on delivery services such as DoorDash or Uber Eats. I did a quick search on restaurants near me, and I found up to 20% cash back at restaurants that I have been to in the past – that is such an easy way to save money!
How long does it take to get money from Upside?
When you take a picture and submit your receipt on Upside, it takes around 10 days for the cash back to process. The delay is the most common complaint in Upside gas app reviews, but it’s because receipts are checked against a gas station or store’s transaction data to confirm purchases.
Once you put in your request to get your cash back through Upside, you should see the funds in 24-48 hours.
What is Upside Check In?
Check In is a feature on Upside that makes it even easier for you to get cash back. Instead of taking the time to take a picture of your receipt, you just check in. All you need to do is claim and offer and then check in once you get to the gas station, so you don’t need to submit a receipt.
This isn’t available at all businesses, only ones that have a blue lightning badge next to their business name.
Once you’ve checked in, you have 20 minutes to make your purchase.
If you accidentally purchase items before checking in, you can still earn cash back. You can simply just head to the Help area in the Upside app and let them know.
How does this work if you don’t need a receipt? Upside does this by matching your transaction data with the store’s records by using the time, amount, and the last four numbers on your credit or debit card that you used.
What’s the catch with the Upside app?
Not all gas stations and grocery stores are on the Upside app. You may decide to switch up where you normally go so that you can get cash back from Upside.
Plus, remember that you do not get a discount as you are at the store or gas station. Instead, you get the cash back afterwards.
Fortunately, the cash that you earn through the Upside app never expires.
Why do I have to claim an offer before I make my purchase for Upside?
This is a slight downside with Upside, only because you may forget to claim an offer and not save money on your purchase!
It can be easy to forget and then have a little regret later just because you forgot such a simple step. That makes sense.
So why do you need to claim an offer as the first step?
Upside needs you to claim an offer first through their mobile app because they want to make sure that you are seeing the correct cash back amount. Offers are changed all the time, and they want to make sure you are happy with the offer that you are going to receive.
Upside also wants you to claim the offers because they want you to make your purchase within a certain time period. Gas stations and stores through Upside are constantly changing their cash back offers because it is dependent on their real-time needs.
Why does Upside need my credit card information? Is Upside safe?
In order to use Upside, you have to add your credit or debit card that you use to make purchases to your Upside “My Wallet.”
This is because Upside verifies your purchases with the companies that you shop at.
But do not worry. They do not see your full credit card number. They only see a part of it. All of the information you share with them, including full credit or debit card number as well as your identity, is secured via third-party encryption.
What else do I need to know about how to use the Upside app?
I want to make sure I cover everything in my Upside review, so here are some other things to know when using Upside:
You have to make sure to claim your offer in the Upside app before you make your purchase.
Make sure you get a receipt because you will need to take a picture of it with your cell phone.
Make sure to use a credit or debit card. To earn cash back with Upside, you need to make your purchase with a debit or credit card. Unfortunately, cash, prepaid credit cards, prepaid debit cards, gift cards, WIC, and EBT are not eligible forms of payment for Upside cash back offers. Upside says this is because “Using a credit card or debit card allows us to make sure the person who claimed the offer is the one making the purchase. This way we can show businesses working with Upside that their offers for you are driving more business for them.”
Upside is available as a mobile app for Apple iOS (through the Apple App Store) and Google Android (through the Google Play Store)
How does Upside make money?
This is a common question. After all, why does Upside give people like you and me money? What’s in it for them?
Upside makes money from referral commissions. When you shop through a company that is listed in the Upside app, Upside earns money from that company.
Upside partners with nearby businesses who want to win users over with great offers they won’t get anywhere else.
Here’s exactly what Upside says: “Upside has profit-sharing arrangements with participating businesses. When we bring them a customer or a purchase they weren’t expecting (and prove it!), then together we share in the profit earned on that purchase. Users get cash back for choosing that business, and businesses get more sales. It’s a win-win, and Upside doesn’t get paid until both make money first.”
Is the Upside app legitimate?
Yes, Upside is legitimate. Upside is not a scam.
People across the U.S. use Upside every single day and earn cash back. According to Upside, frequent users of their mobile app save an average of $148 each year. That’s not a ton of money, but it’s enough to cover your Netflix bill for the year if you think about it like that.
According to the Better Business Bureau, Upside reviews are 4.82 out of 5.0 from over 2,800 reviews. And you can go to the BBB website to read through many of the great Upside reviews posted by real users.
Upside Review – Is the Upside gas app worth it?
I think the Upside app is well worth it. It’s easy to use and doesn’t take up too much of your time. There is also no fee to use Upside as it is a free app!
If you’re looking to save some more money on your everyday purchases that you make in real life, then Upside is a great app to use. You can save money at gas stations, convenience stores, restaurants, and grocery stores around the United States, and there are probably places that you already visit and spend money at where you could be saving money!
One great thing about using the Upside app is that there is no limit to how much money you can earn, and you can still use coupons, discounts, and loyalty programs as well. That means you can stack your savings by doing all of these things and save even more money.
You can download and sign up for Upside for free here. You can also use my Upside promo code UMN2J to earn an extra $0.15 per gallon bonus the first time you use the Upside app.
Do you use the Upside app? Do you have any other questions that I didn’t address in my Upside review? You can ask in the comments, and I will answer them!