Average mortgage rates moved higher for all types of loans compared to a week ago, according to data compiled by Bankrate. Rates for 30-year fixed, 15-year fixed, 5/1 ARMs and jumbo loans jumped.
The Federal Reserve has lifted rates 10 times in a row, most recently at its May 3 meeting. Rates now are at a 15-year high, but the consensus is that inflation is finally cooling and the central bank might halt raising rates.
”Mortgage rates have settled into a new normal of around 6.5 percent on a 30-year fixed-rate loan,” says Lisa Sturtevant, chief economist at Bright MLS, a large multiple listing service in the Middle Atlantic region. ”With growing recession risks, we could see mortgage rates dip lower, but we will not be returning to the 3 percent level seen during the height of the pandemic.”
Rates as of June 14, 2023.
The rates listed above are averages based on the assumptions shown here. Actual rates available within the site may vary. This story has been reviewed by Suzanne De Vita. All rate data accurate as of Wednesday, June 14th, 2023 at 7:30 a.m.
>>View historical mortgage rate movements
You can save thousands of dollars over the life of your mortgage by getting multiple offers. Comparing mortgage offers from multiple lenders is always a smart move, but shopping around grew especially critical during the interest rate run-up of 2022, according to research by mortgage giant Freddie Mac. It found the payoff for bargain-huntng borrowers doubled last year.
“All too often, some homeowners take the path of least resistance when seeking a mortgage, in part because the process of buying a home can be stressful, complicated and time-consuming,” says Mark Hamrick, senior economic analyst for Bankrate. “But when we’re talking about the potential of saving a lot of money, seeking the best deal on a mortgage has an excellent return on investment. Why leave that money on the table when all it takes is a bit more effort to shop around for the best rate, or lowest cost, on a mortgage?”
The average rate you’ll pay for a 30-year fixed mortgage is 7.04 percent, up 2 basis points over the last seven days. This time a month ago, the average rate on a 30-year fixed mortgage was lower, at 6.96 percent.
At the current average rate, you’ll pay principal and interest of $667.99 for every $100,000 you borrow. That’s an additional $1.34 per $100,000 compared to last week.
The 30-year mortgage is the most popular option for homeowners, and this type of loan has a number of advantages, including:
Lower monthly payment. The 30-year mortgage offers lower, more affordable payments spread over time compared with shorter-term mortgages.
Stability. With the 30-year, you lock in a consistent principal and interest payment. That predictability lets you plan your housing expenses for the long term. Keep in mind: Your monthly housing payment can change if your homeowners insurance and property taxes go up or, less likely, down.
Buying power. With lower payments, you can qualify for a larger loan amount and a more expensive home.
Flexibility. Lower monthly payments can free up some of your monthly budget for other goals, like saving for emergencies, retirement, college tuition or home repairs and maintenance.
Strategic use of debt. Some argue that Americans focus too much on paying down their mortgages rather than adding to their retirement accounts. A 30-year fixed-rate mortgage with a lower monthly payment can allow you to save more for retirement.
15-year mortgage moves up,+0.08%
The average 15-year fixed-mortgage rate is 6.46 percent, up 8 basis points over the last week.
Monthly payments on a 15-year fixed mortgage at that rate will cost approximately $869 per $100,000 borrowed. The bigger payment may be a little more difficult to find room for in your monthly budget than a 30-year mortgage payment would, but it comes with some big advantages: You’ll come out several thousand dollars ahead over the life of the loan in total interest paid and build equity much more rapidly.
5/1 ARM rate moves up, +0.03%
The average rate on a 5/1 adjustable rate mortgage is 6.09 percent, up 3 basis points from a week ago.
Adjustable-rate mortgages, or ARMs, are mortgage terms that come with a floating interest rate. To put it another way, the interest rate can change periodically throughout the life of the loan, unlike fixed-rate loans. These loan types are best for people who expect to sell or refinance before the first or second adjustment. Rates could be substantially higher when the loan first adjusts, and thereafter.
While borrowers shunned ARMs during the pandemic days of super-low rates, this type of loan has made a comeback as mortgage rates have risen.
Monthly payments on a 5/1 ARM at 6.09 percent would cost about $605 for each $100,000 borrowed over the initial five years, but could increase by hundreds of dollars afterward, depending on the loan’s terms.
Jumbo mortgage rate increases, +0.02%
The average rate you’ll pay for a jumbo mortgage is 7.05 percent, an increase of 2 basis points from a week ago. A month ago, the average rate was below that, at 7.01 percent.
At today’s average rate, you’ll pay principal and interest of $668.66 for every $100,000 you borrow. That’s an extra $1.34 compared with last week.
Summary: How mortgage interest rates have shifted over the past week
30-year fixed mortgage rate: 7.04%, up from 7.02% last week, +0.02
15-year fixed mortgage rate: 6.46%, up from 6.38% last week, +0.08
5/1 ARM mortgage rate: 6.09%, up from 6.06% last week, +0.03
Jumbo mortgage rate: 7.05%, up from 7.03% last week, +0.02
Interested in refinancing? See rates for home refinance
Current 30 year mortgage refinance rate trends upward, +0.05%
The average 30-year fixed-refinance rate is 7.16 percent, up 5 basis points compared with a week ago. A month ago, the average rate on a 30-year fixed refinance was lower, at 7.05 percent.
At the current average rate, you’ll pay $676.08 per month in principal and interest for every $100,000 you borrow. Compared with last week, that’s $3.37 higher.
Rate trends: Where are mortgage rates headed?
The days of sub-3 percent mortgage interest on the 30-year fixed are behind us, and rates have so far risen beyond 7 percent in 2022.
“Low interest rates were the medicine for economic recovery following the financial crisis, but it was a slow recovery so rates never went up very far,” says McBride. “The rebound in the economy, and especially inflation, in the late pandemic stages has been very pronounced, and we now have a backdrop of mortgage rates rising at the fastest pace in decades.”
Comparing mortgage terms
The 30-year fixed-rate mortgage is the most popular option for homeowners, and this type of loan has a number of advantages, including:
Lower monthly payment: Compared to a shorter term, such as 15 years, the 30-year mortgage offers lower payments spread over time.
Stability: With a 30-year mortgage, you lock in a consistent principal and interest payment. Because of the predictability, you can plan your housing expenses for the long term. Remember: Your monthly housing payment can change if your homeowners insurance and property taxes go up or, less likely, down.
Buying power: With lower payments, you can qualify for a larger loan amount and a more expensive home.
Flexibility: Lower monthly payments can free up some of your monthly budget for other goals, like saving for emergencies, retirement, college tuition or home repairs and maintenance.
Strategic use of debt: Some argue that Americans focus too much on paying down their mortgages rather than adding to their retirement accounts. A 30-year fixed mortgage with a smaller monthly payment can allow you to save more for retirement.
That said, shorter-term loans have gained popularity as rates have been historically low. Although they have higher monthly payments compared to 30-year mortgages, there are some big benefits if you can afford the upfront costs. Shorter-term loans can help you achieve:
Greatly reduced interest costs: Because you pay off the loan faster, you’ll be able to pay less interest overall.
Lower interest rate: On top of less time for that interest to compound, most lenders price shorter-term mortgages with lower rates.
Build equity faster: The faster you pay off your mortgage, the faster you’ll own value in your home outright. That’s especially handy if you want to borrow against your property to fund other spending.
Debt-free sooner: A shorter-term mortgage means you’ll own your house free and clear sooner than you would with a longer-term loan.
Determining how much house you can afford
If you’re not sure how much of your income should go toward housing, follow the traditional 28/36 percent rule. Most financial advisers agree that people should spend no more than 28% of their gross income on housing (i.e., your mortgage payment or rent), and no more than 36% of their gross income on total debt, including mortgage payments, credit cards, student loans, medical bills and the like. Calculate how much house you can afford and determine your monthly payments.
“How can I travel on a budget?” is one of the top questions we receive at TPG.
There’s no question that travel is expensive right now as millions satisfy the itch to travel more. Demand has been through the roof. Inflation and correspondingly high hotel, rental car and airline ticket costs have many would-be travelers throwing up their hands in frustration.
However, there are still many ways to save. In addition to using reserves of points and miles to book hotels and airfare, TPGers have many budget travel tips to help stretch your dollars when traveling.
Here are 22 ways to travel on a budget.
Use membership codes to save on car rentals
If you’re a member of AAA or AARP, have a Costco membership, are a veteran or work for a large company with a car rental discount code, pull all of these levers. You might be eligible for discount codes you didn’t even know about. A few examples from AARP include 30% off a car rental at Budget or Avis.
Related: How to never pay full price for a rental car
Look beyond traditional car rental companies and locations
Most people search for rentals at the airport with standard companies like Hertz and Avis. If you don’t find good results, consider off-airport locations or try alternatives like Kyte, Turo and Silvercar.
Related: Delta and Turo launch partnership, allowing travelers to earn 2,000 SkyMiles on 1st rental
Check credit card merchant offers
Before booking your trip, review your credit cards’ special merchant offers. Multiple issuers offer this option (although American Express is a leader in the category).
Sign up for our daily newsletter
Every program works similarly: Log in to your card account online or through your banking app, review the offers available to you, add the ones you want and make a qualifying purchase using the card for which the offer is registered.
There are no promo codes to enter at online checkout or coupons to print to take to the register. There are likely offers you can activate that will provide discounts on dining, gas and entertainment.
Related: How credit card merchant offers can save you hundreds of dollars every year
Take advantage of free days at national parks
Every year the U.S. National Park Service sets aside several days when entry is completely free; options include Martin Luther King Jr. Day in January, the first day of National Park Week in April, National Public Lands Day in September and Veterans Day in November.
Visiting a national park on one of the NPS’ free-entry days can save you up to $35 per vehicle at some of the most popular national parks, such as Glacier National Park and the Grand Canyon.
Stay outside the national parks
You might dream of a night in a rustic cabin inside a national park, but getting that reservation could be challenging or costly — especially if you can’t pay for it with points.
However, just beyond the park, there’s probably a hotel you can book with points. For example, you could stay at the Holiday Inn in West Yellowstone with IHG One Rewards points; the SpringHill Suites just outside of Zion National Park is a great property if you have Marriott Bonvoy points to spend.
Related: The best campgrounds, hotels and lodges near Yellowstone National Park
Download the T-Mobile Tuesdays app
If you’re a T-Mobile user, you’re in luck: This app is a major perk that will put money in your pocket just for checking your phone on Tuesdays.
To participate, download the T-Mobile Tuesdays app, check the app on Tuesday and claim your discount code. We’ve seen weekly discounts on everything from rental cars to gas, hotels and theme park tickets.
Get discounted gas at Shell through the Fuel Rewards app
At TPG, we love to stack savings. The Shell Fuel Rewards app is a good one to pile on the discounts.
You can link it to other loyalty programs — including American Airlines AAdvantage, Giant Food, Stop & Shop, Advance Auto and more — to receive extra discounts. Also, if you purchase through Fuel Rewards, link to partner retailers such as Petco, Bed Bath & Beyond, Office Depot/OfficeMax and many others to save even more.
Don’t forget to use a credit card that gives bonus points or discounts at gas stations for even more savings. TPG likes the Citi Premier® Card (see rates and fees), which awards 3 ThankYou points per dollar at gas stations, and the Blue Cash Preferred® Card from American Express, which also gives 3% back at U.S. gas stations.
Related: These are the best credit cards for gas purchases
Save on theater tickets in New York and London
Check TodayTix for cheap Broadway and West End tickets if traveling to New York City or London.
The TodayTix app has discounted tickets to various shows available. Prices vary, but most of the top shows currently playing are available on the site and the app.
While not all shows are hugely discounted, TodayTix often runs no-fee promotions. Keep in mind that for some shows, you won’t be able to choose your precise ticket location. Instead, you will pick a section you’d like to sit in.
Related: On with the show! How to get a great deal on Broadway tickets
Save on entrance fees with Bank of America
Bank of America cardholders can enjoy free general admission to more than 225 cultural institutions in dozens of U.S. cities on the first weekend of every month just by showing their cards. It’s through the Museums on Us program that’s been going on for 25 years. It’s open to Bank of America, Merrill and Bank of America Private Bank (U.S. Trust) credit or debit card holders.
Related: 5 reasons to get the Bank of America Premium Rewards credit card
Use your library card for museum entry
Another way to get free museum admission is with a library “lending ticket” — a program where libraries will lend museum passes for a set amount of time.
Also, check if your local museum’s membership comes with ROAM (a reciprocity program across North America). It’s an easy way to get maximum value from a regional (and usually less expensive) membership.
Take a free walking tour
Sign up for a free walking tour on your first day in a new city. It’s an inexpensive way to learn about the city and orient yourself.
Look online for options before traveling and sign up in advance if necessary. Then, all you need to do is show up with comfortable shoes and enjoy your free tour.
Although tipping is suggested, you’ll spend much less, even after generously tipping your guide, than you would with a standard tour option. You will likely also meet other like-minded travelers, which can be welcome if you’re traveling alone or looking to make new friends.
If you’re interested in seeing what’s available on your next trip, Google the city you’ll visit and the phrase “free walking tour” to see what comes up.
Dine on the cheap with Seated
Here’s a fun one: The Seated app allows you to dine out and get paid for it.
The app rewards diners who sign up and eat at designated restaurants with cash they can redeem through gift cards. All you have to do is let the app know you’ll be dining at a location before you take a seat. You can also get gift cards for Uber, Amazon and Starbucks.
Fly on weekdays
Flexibility on which days you fly is one of the keys to getting the best airfare prices. Leisure travelers most commonly book weekend flights, while many business travelers fly on Monday. So, the midweek days — Tuesday and Wednesday — have lower demand and are often the best days to travel for lower prices.
Related: When is the best time to book airfare?
Book vacation packages
Airlines that bundle airfare and hotels as vacation packages can offer better deals thanks to their vast buying power and inventory. These bundles can offer savings of up to 40% off. Savings on business-class plane tickets and high-end hotels can offer some of the best deals.
Also, purchasing directly from the airline gives you a one-stop shopping experience. You can even add a car and activities to your trip at the same time. Plus, you’ll often be able to take advantage of special sales and bonus points and miles offers.
Related: Everything you need to know about saving money with vacation packages
Use a price monitoring tool
Airline fare monitoring sites such as Hopper and Google Flights ensure you get notifications when your trip’s best and lowest prices become available. Set up as many combinations as you’re considering, including different departure and return dates, so that you can get alerts for all possible fare reductions.
Be flexible on destination
If you’re not locked into a fall or winter vacation location (like you would be for a destination wedding or family reunion that you can’t change), try an alternative to find better prices. For example, consider subbing Quebec City in for Paris if you want Old World charm. For scuba diving enthusiasts, skip the expensive long-haul flight to Australia and the Great Barrier Reef and instead head to the second-largest barrier reef in the world in easy-to-access Belize.
Related: 5 key tools and tips for cheap airfare
Hold your deal
If you see a great deal but are not yet ready to book, hold it. For example, Hopper’s Price Freeze allows you to lock in the price of a flight for up to seven days to take more time to finalize plans before you book. Some airlines will also let you hold flights for a small fee. (Remember that all U.S. airlines, by law, allow you to hold and cancel a flight booking within 24 hours without penalty as long as you book more than seven days in advance.)
Re-price your flights and hotels
As long as you’ve booked a hotel, car or flight that can be canceled without penalty, you should make it part of your weekly routine to check for price drops. If you find a lower price, rebook. You can use these same rebooking strategies with points to make dynamic pricing work in your favor for hotel stays so you can save on award nights.
Related: How I saved 33,500 points on upcoming hotel stays
Consider alternative airports
With prices high, now is the time to be flexible and check all nearby airports. For example, Houston and Chicago have two airports, while the New York City area has three, including Newark Liberty International Airport (EWR) in New Jersey. In Southern Florida, you could easily fly to West Palm Beach, Fort Lauderdale or Miami. It works internationally too: Try Gatwick Airport (LGW) instead of Heathrow Airport (LHR) when flying to London.
It may even make sense to get to one city by flying to another city and then taking a short train ride for the rest of the journey. For instance, you could fly into Philadelphia and catch a train to New York. Strategies like this can help you get to your destination on a flight with better pricing or award availability.
Use positioning flights
Positioning flights are unrealistic for every situation or trip, but they can often offer better award availability or pricing than those from your home airport. Can you reach your destination for a lot less by starting in Seattle or Chicago? Would adding another flight to a different airport save you money or miles? Just ensure you leave enough time between flights to avoid unnecessary travel headaches.
Related: Use positioning flights to get amazing deals
Use points and miles when appropriate
Since you are reading TPG, you may also want to earn points or miles through your everyday spending that you can use to pay for part of your trip. Some credit cards — like the Delta SkyMiles® Gold American Express Card and the Hilton Honors American Express Surpass® Card — can help you earn airline miles or hotel points that you can redeem directly with the airline or hotel. Cards such as the American Express® Gold Card earn transferable points you can redeem for travel or transfer to various travel partners.
If you have a stash of points and cash fares are high, it makes a lot of sense to use those points instead. For example, I recently priced a trip to San Francisco and found a flight over the Fourth of July weekend; it should normally cost about $400, but for this particular weekend, it was going to cost me at least $621. I used 46,000 Delta SkyMiles instead. While it wasn’t the best redemption in the world, it was better than shelling out all that cash. Most of those SkyMiles came from credit card spending on my Delta SkyMiles® Reserve American Express Card.
Related: Why I’m keeping my Delta Reserve card even when I’m flying less
There are many strategies for getting the most out of your credit card. You’ll generally get the most value when redeeming for premium-cabin flights or luxury hotel stays. However, you may prefer to book economy award flights or lower-category hotel stays using your points to stretch your points further.
Join AARP
You can join AARP for discounts even if you are not retired. The advocacy group for older adults offers all kinds of cool discounts, including $60 to $200 off British Airways flights and 10% off Hilton hotels.
Related: How to use AARP discounts on travel
Bottom line
Spending a small amount of time researching the best ways to travel on a budget could easily make a dream trip, like a Paris vacation, more attainable.
It’s possible to take an excellent vacation on a budget. You just need to put in the time to plan your trip, budget your expenses, download a virtual wallet of money-saving apps and consider using points and miles to decrease your out-of-pocket costs.
Some of our top budget travel tips include shopping around, signing up for deal alerts through websites like TPG and using points and miles. Opening a credit card or two for the sign-up bonus once or twice every few years could make your trips even cheaper. Don’t forget to sign up for our daily newsletter, where we teach you how to travel better for less. At TPG, we make traveling on a budget easy.
Ever wonder what share of borrowers are taking out a 15-year mortgage as opposed to a standard 30-year fixed? Or an ARM instead? Well, I was, and so I went looking for the data.
Fortunately, I was able to track down some of the details thanks to the Urban Institute, which provided me with some great statistics since the year 2000.
As you might expect, the 30-year fixed is the king of mortgage originations, though its dominance has been tested over the years. And it does depend if we’re talking about all originations, or just purchases.
Mortgage product type choice definitely varies if we’re talking about a refinance as opposed to a home purchase since borrower needs change over time.
Put simply, it’s more common for a borrower to choose the 15-year fixed when refinancing a mortgage, and a lot less likely to use one to buy a home.
Why is this? Well, generally borrowers will go with a 30-year term because it increases affordability, meaning they can buy more house at the outset.
Later, once they’ve built some equity (hopefully), they can refinance into a shorter-term fixed loan, such as the 15-year fixed, to save on interest and also ensure their loan term isn’t extended from the original maturity date.
Nearly 90% of Purchase Mortgages Were 30-Year Fixed Mortgages
The 30-year fixed is easily the most popular type of home loan available
It has been for decades and probably will be for the foreseeable future
Largely because it’s the cheapest and most pitched mortgage product
Ultimately ARMs are too risky for most homeowners and the 15-year fixed is too expensive
I spoke to the dominance of the 30-year fixed, and perhaps that was an understatement. The 30-year fixed claimed nearly 90% (89.5%) of the purchase market in June 2017, per data from Corelogic, eMBS, HMDA, SIFMA and Urban Institute.
It was actually higher at many times over the past 12 months, hitting 92.6% in July 2016.
Back in January 2000, the oldest month where there is data, the 30-year fixed accounted for just 70.3% of purchase mortgages.
Its lowest share since then was in December 2004 and March 2005, when it was selected on just 48.3% of new purchases.
In those same months, the adjustable-rate mortgage share was a staggering 41%. The ARM share continued to be quite high leading up to the housing crisis that ensued a few years later.
But in June 2017, the ARM share was a measly 3% of new purchase loans, which tells you today’s home buyer has very little interest in anything other than the safety of the 30-year fixed.
And only 6.1% are interested in the 15-year fixed, or perhaps only a small handful can actually afford the higher monthly payments thanks to DTI restrictions.
30-Year Fixed Less Dominant on Refinances
While still easily number one, the 30-year fixed is less popular when we consider refinance loans
You can thank the 15-year fixed mortgage for that
It’s a common choice for those looking to avoid resetting the clock
Since you can avoid a new 30-year term and also snag a lower interest rate
When it comes to refinances, the 30-year fixed is still the product of choice for most borrowers, but less so.
Per the latest data, the 30-year fixed held a 76.7% share of ALL mortgages in June. Meanwhile, the 15-year fixed grabbed a larger 14.3% share, while ARMs still held a paltry 3.3% share.
If we go all the way back to January 2005, we see the low point for the 30-year fixed across all mortgage originations. At that time, only 44% of borrowers chose it.
During the same month, the ARM-share was 38.7%, while the 15-year fixed grabbed a 9.9% share.
Back in January 2000, the 30-year fixed share was at 59.5%, while the 15-year fixed held 10.9%, and ARMs 21.5%.
So the 30-year fixed is still very popular, though not quite as much as it was back in December 2008, when its market share across all mortgages peaked at 88.4%.
The 15-year fixed peaked at 26.8% in April 2003 across all origination types. And ARMs peaked at 42.1%.
Market Share of All Mortgage Originations Since 2000
Achieve the perfect shabby chic aesthetic with these shopping tips and tricks.
Blending vintage and French country aesthetics, shabby chic is one of the most popular interior design trends of today among trendy styles like Japandi and Coastal Grandmother. Elegant, classical furniture is given a rustic twist with distressed paints and worn fabrics.
Cottage-style items like metal jugs meet glittering chandeliers for a look that’s equal parts warm and cozy but also romantic and glamorous. Neutral, muted colors are the main colorways, with pops of color added in — usually soft pastels like pink and blue.
If you want to curate this stylish and trendy aesthetic in your apartment, here’s how you can find the right type of decor and furnishings.
How to find shabby chic furniture and decor for your apartment
Due to its heavy use of vintage (or vintage-styled) furniture, thrifting and going to antique stores are some good ways to source the right style of items for your shabby chic apartment. But that can take time to curate the right pieces.
If you want to realize your vision faster, finding shabby chic decor and furniture online at major retailers like Amazon is easy. You can also follow home and lifestyle influencers and blogs like French Country Cabin and Amy Berry for shabby chic design inspiration and ideas.
17 shabby chic decor ideas for your apartment
Not sure where to start decorating your apartment as shabby chic? These 17 decor items will look right at home in any shabby chic setting, giving you a good springboard for other decor ideas.
1. Shabby chic key holder shelf
Image Source: Amazon.com
Whether it’s for keys or coffee cups or towels, having a wall shelf with key hooks frees up cabinet storage and fills up wall space. The top shelf is ideal for holding letters, sunglasses or whatever else you need.
With its brass-finished hooks and distressed white-and-brown paint job, this key holder shelf both fits the shabby chic style and gives you a handy place for your keys, purse and other regularly used items.
2. Ruffled, farmhouse-style shower curtain
Image Source: Amazon.com
Everyone needs a shower curtain (unless you want to get water all over the bathroom and have no privacy while showering). Give yours a shabby chic twist with this farmhouse-style shower curtain with a ruffled base and cute wooden buttons.
3. Metal jug vase
Image Source: Amazon.com
Cottage and farmhouse elements are a key part of the shabby chic look, which you can incorporate with a vintage-looking metal jug vase. Its petite size, pitcher style and “Flowers & Garden” branding make it perfect as a flower vase.
Put it in the kitchen and fill it with mixing utensils, set it up on your apartment balcony or stoop with gardening tools…the possibilities are endless. Plus, the turquoise color will add a pop of color to the space.
4. Pink and ivory oriental wool rug
Image Source: Amazon.com
With their colorful patterns, most Oriental-style rugs won’t fit the traditional shabby chic color scheme. Instead, try out this ivory and soft pink wool rug, with a floral-style pattern to match the garden aesthetic part of shabby chic. This rug will look nice contrasted against gray and tan furniture, and the wool fabric will feel great underfoot.
5. Lace macrame vintage tablecloth
Image Source: Amazon.com
Delicate accessories go a long way to completing the shabby chic look. Use a lace macrame tablecloth on any kind of table, from side tables to dining tables, to add an air of glamour and elegance.
This particular one is also machine-washable, which makes it easy to clean in case of spills or messes. Just because you love an old-fashioned style doesn’t mean you want to clean and scrub laundry like they did in the olden days!
6. Decorative lantern
Image Source: Amazon.com
Old-fashioned, vintage lanterns are another in-style touch for the shabby chic aesthetic. Distressed white paint on metal adds a rustic vibe, while elegant, curled metalwork brings in fairy-tale elements. With four glass panes, you can add real or fake battery-powered candles to give your shabby chic space a warm, candlelit glow.
7. Tiffany floor lamp
Image Source: Amazon.com
With their lovely and often floral-themed glasswork, Tiffany lamps fit right in with the shabby chic school of design. But you want for one without too many colors, as strong colors stand out too much for the muted, cozy feel of a shabby chic space. This standing floor lamp fits the bill, with its arched gooseneck and burnished brass finish further fitting the shabby chic look.
8. French country-style hanging chandelier
Image Source: Amazon.com
One of the easiest ways to add that touch of glamour to your shabby chic abode is by hanging a small chandelier. Tiny chandeliers are a big part of the aesthetic, elevating the cottage-core theme of the room with its grand appearance. This French country-style example with dangling pendants and fake candles will look right at home in any shabby chic apartment. Just be sure that the chandelier you choose isn’t too big, as petite and delicate is the name of the game for this style.
9. Rustic cottage end table
Image Source: Amazon.com
It’s always good to add an end table to the sides of your couch. They’re handy for holding lamps or just as spots for decorative items. This cottage-style one features distressed paint for a rustic, farmhouse look that will look great paired with an elegant lamp.
10. Vintage floral wallpaper
Image Source: Amazon.com
With its style references grounded in the French countryside and cottage-core, florals are a motif that shows up frequently in shabby chic interior design. If you don’t want plain walls, put up a refined floral wallpaper like this one with delicate pink roses and white curlicues against a linen-patterned soft blue background.
Best of all, this adhesive paper can also work for cabinets, shelves, dressers and other flat surfaces. So if you don’t want to fill a whole wall with it, you can still incorporate it into the overall look. It’s easily removable as well, which makes it very renter-friendly.
11. Metal frame bed
Image Source: Amazon.com
A simple but attractive metal bed frame that looks like something out of a fairy tale perfectly fits the shabby chic look. This one from Amazon is sturdy, so you’ll still get a good night’s sleep while achieving the look and vibe you want.
12. Floral, vintage-style bedsheets
Image Source: Amazon.com
Going back to the floral motif, outfit your bed with floral-patterned bedsheets like this delicate rose set. The cozy and soft cotton with the rose pattern will look and feel good.
13. Vintage bird cage decor and letter holder
Image Source: Amazon.com
Use a vintage-style bird cage for practical purposes like holding letters or simply set it up as a purely decorative element. Either way, it’ll look right at home in your shabby chic apartment.
14. Vintage table clock
Image Source: Amazon.com
Constantly getting out your modern smartphone or using a contemporary wall clock to check the time isn’t very shabby chic. With distressed white paint, an antique watch face and elegant metal work, this vintage-style clock helps you tell the time without taking away from the shabby chic vibe.
15. Entryway table
Image Source: Amazon.com
It’s always handy to have a table in your entryway. It gives you a place for keys, mail, your purse or other items you regularly need when you leave the house. The curving legs, distressed white paint and rustic wooden shelf of this entryway table screams shabby chic, helping you keep your aesthetic while being practical at the same time.
16. Antique-style loveseat
Image Source: Amazon.com
With soft gray fabric, distressed wood and its tufted fabric pattern, this loveseat is petite enough to fit in any shabby chic apartment living room. Not only is the look spot-on for French country, but everyone needs a place to sit.
17. Distressed drawers
Image Source: Amazon.com
This robin-egg blue dresser with distressed paintwork will be the perfect complement to the pink and white tones of the rest of your bedroom, giving you a place to store your clothes without ruining the shabby chic aesthetic.
Turn your dream apartment into a shabby chic decor haven
With its soft, flowy feel and mix of elegant and rustic Old-World styles, shabby chic is a very fun and accessible style for any apartment. Ready to transform your apartment into a cottage in the French countryside with a shabby chic aesthetic? Find the right apartment for your vision by checking Rent.com listings in your desired area.
Today we’ll check out a large-scale mortgage broker by the name of Sunnyhill Financial that’s looking to start a “Doc Less Revolution.”
By that, they mean make it easier for folks to apply for a home loan without having to track down lots of paperwork, scan/upload it, fax it, etc.
Yes, all those things are still verified to ensure you’re a creditworthy borrower (it’s not 2006!).
But it’s done so in a more efficient manner (using the latest technology) so you can spend less time getting a mortgage, and more time enjoying that new low rate.
Sunnyhill Financial Fast Facts
Independent mortgage brokerage
Offers home purchase loans and refinances via it wholesale partners
Founded in 2018, headquartered in San Francisco, California
Currently licensed to do business in 10 states nationwide
Provides a digital home loan experience to their customers
Sunnyhill Financial is an independent mortgage broker, which means they connect consumers to wholesale mortgage lender partners.
This gives them the advantage of shopping your loan scenario on your behalf so you don’t have to.
For those who don’t like to comparison shop, or simply don’t have the time, a broker can accomplish the shopping piece for you by checking out rates from their partners, then presenting you with the best offer.
Aside from saving you time, it could also save you money if they match you with a lender that offers lower mortgage rates and reduced lender fees.
The San Francisco, California-based company seems to be pretty young, having been founded as recently as 2018. But says it has over 50 years of combined mortgage experience.
Currently, they’re licensed to do business in 10 states, including Arizona, California, Colorado, Florida, Georgia, Michigan, Ohio, Oregon, Texas, and Utah.
They plan to roll out to additional states soon, including Maryland, Nevada, North Carolina, Pennsylvania, South Carolina, Tennessee, and Washington.
So they should have a lot more coverage in the near future, with licensing in about half the country.
How to Apply with Sunnyhill Financial
They offer a digital mortgage application powered by Blink
Allows you to verify income, assets, and employment electronically
You can also eSign disclosures and other necessary documents
And potentially fund your loan via a virtual e-closing from the comfort of your home
As noted, the company say its starting a “Doc Less Revolution,” and instead of asking you to gather documents, they automatically verify income, assets, and tax returns for you.
This is possible thanks to Single Source Validation, which lets you use login credentials to access things like pay stubs and bank statements that are then automatically imported into your application.
And you won’t have to sign any necessary paperwork with a pen and then scan it back – they let you eSign documents and disclosures so you can speed through the process, no matter where you happen to be.
To get started, simply visit their website and click on “Apply Now” to create an online account and begin the process.
Their digital mortgage app seems to be powered by Blink, which is provided by United Wholesale Mortgage, the largest wholesale lender in the country.
Alternatively, you can request a personalized mortgage rate quote via their website first, or simply call them up to get connected with one of their loan officers.
Once your loan is submitted, you’ll be able to track status via the online borrower portal, and receive updates as your loan progresses to the next step.
Aside from it being easy and convenient, Sunnyhill Financial aims to close loans super-fast thanks to the use of the latest technology.
So if you’re the type that likes to do things remotely, potentially from a smartphone, this company might be for you.
Of course, you can still get in touch with a loan officer and loan processor along the way if and when questions arise.
Loan Programs Available at Sunnyhill Financial
Home purchase loans
Refinance loans: rate/term, cash out, and streamline
Conforming loans backed by Fannie Mae and Freddie Mac
Jumbo home loans
Government-backed loans: FHA and VA
Fixed-rate mortgages: 10, 15, 20, and 30-year loan terms
Adjustable-rate mortgages: 5/1, 7/1, and 10/1 ARMs
Sunnyhill Financial provides the majority of the most popular loan programs available, including conforming loans, jumbo loans, FHA loans, and VA loans.
The only major loan type missing seems to be USDA loans, along with second mortgages, such as HELOCs.
However, they lend on all property types, including single-family homes, condos, and multi-unit properties, and offer financing on second homes along with investment properties.
You can get purchase loan or a refinance loan, including rate and term and cash out refinances.
Both fixed-rate and adjustable-rate mortgage options are available in a variety of different loan terms.
Sunnyhill Financial Mortgage Rates
One slight downside to Sunnyhill Financial is the fact that they don’t publicize mortgage rates or lender fees on their website.
Of course, because they operate as a mortgage broker it means they have access to rates from all their wholesale lending partners.
As such, they can scour all their partner’s rate sheets and provide you with the most competitive rate quotes.
I believe they are approved to work with United Wholesale Mortgage (UWM), so those looking to work with that company might be able to via Sunnyhill Financial.
One hint we have about rates comes from their participation in the Bankrate mortgage comparison tables. From what I saw, their rates were pretty low relative to other lenders listed.
More importantly, they offered some of the lowest mortgage APRs on the platform, which is a more important figure that factors in lender fees including discount points.
You also might be able to haggle with them if you don’t like what you hear the first time around since they can shop your loan with multiple lenders.
In terms of lender fees, they don’t mention them on their own website but I did see a flat $999 underwriting fee via their Bankrate listing.
Be sure to inquire about both rates and fees to get the best deal on your home loan.
Sunnyhill Financial Reviews
On Google, Sunnyhill Financial has a perfect 5-star rating out of 5 from just over 200 customer reviews. Both professionalism and responsiveness seem to stand out as keywords.
Over at Bankrate, the company also has a perfect 5-star rating from about 150 reviews, with 100% of reviewers saying they’d recommend them.
They’ve also got a 5-star rating on Zillow, albeit from a much smaller number of reviews (about 30 at last glance).
But most of the reviews on Zillow indicate that the interest rate was lower than expected, which is a good sign on the pricing front.
All in all, it’s pretty impressive to see perfect ratings across several major review sites – hopefully this means they consistently make their customers happy, regardless of their loan specifics.
In summary, Sunnyhill Financial seems to be excelling in customer satisfaction, perhaps thanks to their digital loan process and hopefully their low mortgage rates.
They could be a good fit for both a new home buyer or an existing homeowner looking to refinance in order to save money and/or pull cash out of their home.
The one downside might be that you’ll need to work remotely, which for some might not be a good fit if looking for a more hands-on approach.
Sunnyhill Financial Pros and Cons
The Good
Offer a digital home loan process
Can apply from any device in a matter of minutes
They’re able to shop your rate with multiple lenders because they are a broker
Plenty of loan programs to choose from
Offer virtual e-closings (sign from anywhere)
Perfect customer reviews across major ratings sites
The short answer is a “definite maybe”. To get a life insurance policy on anyone there absolutely must be an “insurable interest” on the proposed insured.
People You Might Want to Buy Life Insurance on:
Here are 9 types of relationships which might provide an insurable interest for you to buy life insurance on someone else:
Spouse or Life Partner
Divorced Spouse
Parents
Children
Grandchildren
Key Charitable donors to a Non Profit
Business partner(s)
Key Employees
You are borrowing a lot of money from a business or individual
Insurable interest generally means that there is some type of relationship, such as a business or personal relationship as indicated above, that would cause a person (the beneficiary) to have a monetary, or financial, interest in the continuing life of another person (the insured).
People ask me all the time “can you get life insurance on someone else?” I usually tell them yes that it’s possible, as long as there is that insurable interest when the policy is applied for – it doesn’t have to continue through the life of the insurance policy.
Their next question is, OK, but “can you get life insurance on anyone without them knowing about it?” To buy life insurance on other people without their knowledge generally can happen in only a couple of situations:
You might be able to buy $1,000 or $5,000 of dependent life insurance on your spouse or dependent children at work without their knowledge. In the past few years, more and more top life insurance companies are offering a larger amount of death benefit (up to $50,000) on spouses. This is without their knowledge, signature or physical exam. Think Cincinnati Life Insurance Company and Companion Life Insurance Company. Sometimes this could be even on a Guaranteed Issue basis and is usually offered as a Payroll deduction voluntary plan.
You can purchase life insurance on children and minors without their signature or knowledge. More on reasons why you would want to do this later.
Let’s look at some definite reasons why you can get life insurance on someone else, and what options you may want to consider when considering a life insurance policy on another person.
If you have questions about buying life insurance on other people, just call us or complete our Compare Quotes form on this webpage.
We are independent representatives, and since life insurance companies have different underwriting standards for different situations, we can help find the best life insurance company for your particular situation.
How Would Someone Know if I am Buying Life Insurance on Them?
Unless you meet the two situations listed above where you don’t need their permission, here is why anyone else would know that you are trying to buy life insurance on them:
The insured person (the someone else) will need to sign the application. This is to allow the insurance company to check medical records to comply with HIPAA, and to confirm to the insurance company that they understand someone is applying for life insurance on them. Forging someone else’s signature would cause a fraudulent application and a claim would be denied.
The insurance company representative or third party person (paramed, for example) will need to ask a lot of health questions directly to them either in person or on the telephone.
That paramed representative might have to show up in person to check their blood pressure, and measure their height and weight.
That same paramed could even have to draw some of their blood and make them pee in a bottle for a urine specimen.
Still think they won’t know? I doubt it. Anyway, it just makes sense that people would want to give permission to anyone wanting to take out life insurance on their life.
Ads by Money. We may be compensated if you click this ad.Ad
6 Reasons to Buy Life Insurance on a Spouse or Domestic Partner
Here are the most common reasons folks get life insurance on someone else like their spouse or partner:
You depend on their INCOME to pay for household expenses that would continue such as the mortgage or rent; groceries, utilities, clothing, etc. This is especially true if the surviving spouse doesn’t work and has small children to care for.
You have DEBT that you would like to get paid off such as Credit card debt or you would just like to have the mortgage paid off with life insurance proceeds.
You do not have an emergency fund that would pay for such things as burial expenses.
There are small children in the household, and you would like to have funds to pay for their future COLLEGE EDUCATION.
You can’t afford a true Long Term Care insurance policy, however, you want a life insurance policy that has some Long Term Care benefits as an option.
This is slightly more complicated, but you buy a second to die life insurance policy that would provide for potential estate taxes.
These are the 5 most popular reasons to get life insurance on a spouse or domestic partner.
Should I ask for Life Insurance if I am Getting Divorced?
OK, so you never bought life insurance on your spouse or domestic partner when things were going well, and now it has been going downhill.
You’re getting a divorce and still have the household debt, the children wanting to go to college, and you haven’t worked outside the home in 20 years. Then YES, include getting a life insurance policy on your ex as part of your agreement.
This is especially important to have when the children are young in terms of having money to pay for their college education. Also, who would pay child support?
If you get push back on this topic, I recommend suggesting that the other person buy a Return of Premium policy, so that after 15 or 20 years, then they are no longer required to keep the policy, and they can get all of their money back.
Things to Consider when Buying Life Insurance on Parents
We also have many clients that ask “can I buy life insurance for my parents?” I tell them that you just have to make sure your parent is in good health and they are aware you are buying life insurance on their behalf.
Buying life insurance for parents is not always the easiest application to get through the life insurance company underwriting due to medical conditions that come with aging.
If you happen to find out that one or more of your parents have health conditions that would prevent them from getting preferred rates, then you might want to consider checking out the types of policies that don’t require a physical from a doctor’s office.
If you’re an older adult, and your parents are even older, then you might have a need to buy a Final Expense life insurance policy which would help pay for funeral expenses. These type plans normally have a death benefit in the $5,000 to $35,000 range.
Another reason adult children find themselves buying life insurance for parents is that if the parents haven’t thought of long term care, these Life Insurance Policies may need to include an option to provide for long term care using up to 50% of the death benefit.
The life insurance companies may require that there be a Medical Provider to certify there is some type of terminal illness before long term care benefits could be paid out from a life insurance policy.
Lastly, it would be helpful to take care of any remaining indebtedness that your parents might have.
So to sum up the 3 main reasons to buy life insurance for your parents and how to use death benefit proceeds:
Pay for final burial expenses
Provide an option to help offset long term care expenses
Satisfy any remaining debt obligations
What are the Options in Buying Life Insurance on Children?
In considering buying a life insurance policy on a child, I recommend buying them their own policy. There are two primary reasons for doing this when they don’t have any personal debt or income.
The first and main reason is to guarantee their insurability. This is done by purchasing a life insurance policy for them that includes a special future insurability rider. This allows them to buy more death benefit (usually up to 5 times the original death benefit) at certain times as they get older.
For example, you buy a $25,000 life insurance policy on your 3-year-old son. Obviously that seems like overkill, and it is for now. But what if they developed a dreaded disease like Multiple Sclerosis, Juvenile Diabetes, or something else that would cause them to pay a very high premium for life insurance as they got older and really needed a higher death benefit?
With this future insurability rider, they could buy an additional $25,000 at age 25, 28, 31, and 34 guaranteed, without any medical questions or medical exams. This would give them up to $125,000 in death benefit at a preferred rate.
The second reason to buy life insurance on a child is that you can buy a permanent life insurance policy (whole life or universal life), and let the cash build up. This asset fund could either go towards college education expenses, or let it build up so one day they could stop paying the premiums and keep a paid up life insurance policy.
Why would a Grandparent take out a Life Insurance Policy on a Grandchild?
A great thing for a grandparent to do is to offer to pay for a life insurance policy on a grandchild, making the parents the beneficiaries and possibly the owner of the policy.
This can really help parents of young children who may also be struggling financially and can’t really afford to pay the premiums and take out a life insurance policy on their children.
This cash build up in the plan could be used for college expenses for the grandchildren. As a matter of fact this would be a very responsible Christmas present for a grandchild.
A good budget for something like this would be around $25 per month for a permanent life insurance policy that builds cash value.
Reasons a Non Profit Would Take Out a Life Insurance Policy on its Donors
For someone who has a strong desire to give to a favorite charity in a big way, letting their favorite nonprofit take out a life insurance policy on themselves is probably the only way to make a significant donation if they otherwise don’t have the means to make an outright cash gift.
There are possible tax deductions available for the premium payer in a situation like this.
Buying Life Insurance on Business Partners
A Buy-Sell agreement is sometimes known as a “business will.” Without going into too much detail here, most of the time it is in the best interests of the deceased partner’s heirs as well as the surviving partner(s) to fund the business will with Life Insurance in the event of the death of a partner.
There are different ways to do this typically based on the type of entity of the business and the number of partners or stockholders.
By getting a business will drawn up and funding it with life insurance, a business owner can take care of their surviving spouse by keeping him or her from having to worry about possibly being taken advantage of by the surviving partner.
Can You Get Life Insurance on Employees?
Life insurance purchased by a business on the life of an employee is generally known as “Key Man” insurance if it is on the life of a specific very important employee of the business.
This is commonly used by businesses that purchase cheap life insurance on employees who occupy a hard to replace status within their company. Usually, this is the largest stockholder or CEO/CFO of the company where their tragic loss can have a tremendous effect on the business.
This could also be the case of the very top Salesperson in the Marketing and Sales department. In this case, the life insurance can cover the loss and tide over the financial difficulties the business might suffer until everything gets worked out.
The business could also use the death proceeds to be able to go out and offer a signing bonus in order to attract the best talent available for that position.
I Need Some Money – How About That Loan?
If you wanted to borrow money from an individual or entity such as a bank or lending firm, they probably would want to buy a life insurance policy on you.
They may make you buy the life insurance policy and just make them the beneficiary. This would make sense so that if something suddenly happened to you, they would have a better chance of getting their money back.
All Others
This is where it gets tricky because purchasing life insurance on anyone outside your close family circle or a key individual in a business is the type of idea that you see played out in mystery novels and crime shows. After all, what is your benefit to seeing someone with no real connection to you covered by life insurance unless you can gain monetarily from being the beneficiary when they die?
If you are thinking of insuring someone outside your family or business, then you will need their consent and a very, very good reason to tell the insurance company why they should have life insurance.
What if I no longer need the life insurance on someone else?
You may one day find yourself in a situation where you are the owner of a life insurance policy on another person, but you no longer need it. This might be because the insurable interest is not there, a debt is paid off, you no longer want to pay the premiums (if you are the premium payer), or for some other reason. What do you do?
The policy can be sold for either the cash value if there is any, or it could be sold for the value of the future death benefit. This is called a life settlement, or viatical settlement.
This is where someone or some business is willing to pay you cash money now for your life insurance policy, and they will pick up paying the premiums and own the policy and the future death benefit proceeds.
What Do I Do Now if I Want To Buy a Policy On Someone Else?
First make sure you do have some type of Insurable Interest in the person you want to insure based on all the above situations.
Unless you are insuring a minor or a spouse on a group voluntary policy at work, have the permission of the person you want to insure.
Have some knowledge of the death benefit amount you want to apply for.
Have a general understanding of the medical condition of the potential insured.
Complete the Compare Quotes form to get a preliminary rate to see if the rates for your death benefit needs fit within your budget.
What if the amenities at your apartment community went beyond the usual pool, tennis courts and fitness center — way beyond? How involved might you choose to be in an apartment society, a place that encourages shared involvement with fellow residents?
[find-an-apartment]
In California, an apartment community developer is going beyond the basics to give new meaning to “community,” creating programs like theater troupes, adult enrichment courses and after-school care for residents. And in Denver, some lucky sports fans can look forward to cheering for baseball… from their own rooftop!
Programs that have paid off According to John Huskey of Los Angeles-based Meta Housing Corporation, apartment communities can do more to support families who live there. In building his most recent family-oriented apartment communities, Huskey discovered that there was a real need for on-site programs — and specially-designed spaces — where children could gather after school and continue to learn. That’s why his company has created after-school learning and mentoring programs which are available to residents living in the apartment community at no extra cost.
6 Ingredients of a Great NeighborhoodQuiz: Where Should You Live?Must-Haves for Any Apartment: What Gen Y Is Looking For
The benefits to the children who participate have proved to be substantial. The after-school programs kept kids at home, actively engaged in study — instead of involved in risky behavior. And the learning opportunities increased their confidence at school. These programs have been so successful that Meta Housing Corp. has begun building dedicated, school-like structures in more of their apartment communities to accommodate the programs.
Sharing the arts at home The same is true in Meta Housing Corp.’s senior communities, where education and art programs have been wildly successful. The company first began offering adult enrichment classes to seniors in great-room spaces, noting that the most popular courses involved creativity and the arts. They also noticed that, while the great-room environment was attractive to some residents, most found it too impersonal for social activity. In later generations of their senior communities, they have developed smaller, more intimate spaces for residents to gather to take classes and get to know each other. These new spaces foster a tighter-knit sense of community.
Seniors have enjoyed the enrichment and social aspects of arts classes so much that Huskey’s company went as far as building a 78-seat theater in one apartment community dedicated to a permanent theater troupe. When the theater troupe isn’t giving professional performances on-site, residents are allowed free access to use the theater building, as well.
Take me out to the ballgame… next door! Another approach to creating community at home is featured at Broadstone Blake Street in Denver, Colorado. Alliance Residential is building a modern apartment community right next to Coors Field downtown. (Residents will be able to see the field from the rooftop of the community.) The residence-in-development is thought to appeal to young people — perhaps especially men — who want to live in a walkable area with easy commutes for working and access to downtown excitement, like ball games. Sharing that excitement with apartment neighbors — and built-in proximity — will make living in this community THE place to be a sports fan in Denver.
Toward apartment societies The success of Meta Housing Corp.’s children and senior programs might indicate that apartment communities are evolving. With an emphasis on enriching resident lives beyond basic shelter, these spaces — based on what residents want and need — might become known as apartment societies in the future.
What else might the future hold? Amenities including on-site senior services like medical care and support groups, or family-oriented services like childcare or even home schooling could be possibilities. As apartment living continues to change shape and mature, multifamily community developers around the country will be looking to Huskey’s success to gain insight on new ways to meet the needs of their residents. In the meantime, you can look for ways to create community in your own apartment life today.
10 Cool Apartment Amenities You’re Missing Out On
Photo credit: Shutterstock / Monkey Business Images
Yes, crazy to think, but this is a survey trend data line, and the housing market was in free-fall at that time. That’s not the case now because we have’t had a credit boom post-2010 as we did from 2002 to 2005. If you connect the lines, you can see where we are on a historical basis.
What is going on here? How can housing inventory be so low today when it skyrocketed back in 2009? Let’s take a look here together because I have been worried about unhealthy home price growth since the breakout in housing demand in 2020, but it’s not because of record-breaking credit demand. It’s more of a lack of supply.
If you follow the trend of housing supply since 2014, it’s been falling every year — with a pause in 2018-2019 — and then collapsed lower post-2020. Now don’t get me wrong: demand is better in 2020 and 2021 than in any single year from 2008 to 2019. We had roughly 300,000 more existing home sales in 2020 than in 2019 and 800,000 more in 2021. I would average those two out because I believe we got some demand push through from the second-half surge in demand in 2020 into 2021.
So, on average, just 500,000 more homes were bought than in 2019. If I take existing home sales from 2017 levels, it’s roughly, on average, just 300,000. Currently, home sales are falling like when rates rise.
As you can see below, the inventory keeps falling from 2014 levels, and even with the weakness in demand this year, we are nowhere close to 2013 levels, let alone 2018 levels.
I don’t believe housing inventory below 1.52 million is a natural state for the U.S. housing market. This is a red danger zone area for forced bidding action, which destroyed my affordability models in just 2.5 years since the start of 2020. In reality, my worst fear for housing came true, and it got even worse in the early part of 2022 as we had record low inventory creating more forced bidding. You can understand why I upgraded the housing market from unhealthy to savagely unhealthy
Of course, being “team higher rates” since February of 2021 isn’t the most popular talking point, but in 2022 I increased my call for higher rates to create some balance — otherwise or pricing can get even worse. We are seeing higher rates do their thing. Today pending home sales came in at another decline.
Inventory data for the first time is showing growth, which is a good thing, folks; we don’t want to stay at these low levels and see more and more unhealthy home-price growth.
But we should ask: Why is inventory so much lower now if purchase application data is at 2009 levels — a period in time when inventory was rising noticeably in 2006, 2007, 2008 and 2009?
The first answer is that people are staying in their homes longer post-2008. Housing tenure ran at five to seven years from 1985-2007 and now is 11-13 years from 2008 2022. The Baby Boomers are not selling their homes en masse, and we have more investors providing shelter for renters than before.
However, the spike in inventory that we saw from 2006 to 2011 can be attributed to the massive credit bubble we had from 2002 to 2005. You don’t want to overcomplicate this topic. Credit stress was evident from 2005 to 2008. People were filing for foreclosures and bankruptcy for years, and then, after all that, the job loss recession happened in 2008.
With a credit boom and credit bust, the monthly supply for homes in America got over six months for years. It took many years to clear up the credit deleveraging process that needed to occur in the U.S. housing market due to rapid credit expansion with exotic loan debt products.
The housing market post-1996 has had a hard time creating more than six months’ supply unless you have extreme housing weakness and forced credit selling. These two factors were happening from 2006 to 2011 and added supply to the market. Demand has been stable enough to keep supply low, and we have no forced credit selling since the great financial crisis. This has been an issue in getting the market balanced for some years now.
What about the builders? We have more housing starts under construction now than in recent history! This is true except for one big reality!
The monthly spike in the new home sales sector looks like massive inventory should be here. Well, six months of that supply are homes that haven’t even been started, and only three months of supply are completed. We have a lot of multifamily construction going on that won’t help the homebuyer.
On top of everything else that we need to deal with on housing, housing completion data has looked terrible for years. People forget when rates rose to 5% in 2018, it delayed housing construction from really growing for 30 months. Then COVID-19 happened and the rest is history; I can’t express to you enough how everything that was supposed to go right for housing flipped negatively, and this is just one of them.
So when we look at the housing starts data, we need more context with it, and we can see that it has a much different backdrop than what we saw from 2002 to 2005, when housing starts were driven by new home sales and single-family starts on a credit bubble. Now we see a different reality with a big push in multifamily construction and a lack of complete data.
Of course, one of the issues now is that rising rates impact the new home sales sector more than the existing home market, so the builders, while not in the same situation they were in in 2002-2005, will be more cautious in building homes with the rising rate risk cancelations and future buyers. They’re at a disadvantage because their homes are more expensive than the existing home supply.
Hopefully, this article outlines the issues we have had with housing since 1996 and why it’s been hard to get inventory to grow unless we see major demand weakness and forced credit selling. I am rooting for more listings than anyone else, but I understand the limits that we have been under post-1996.
Higher mortgage rates in the past have created more days on the market and cooled down the rate of price growth, which I am hoping for again. However, the homeowner’s credit profile is much better this time around. Their cash flow is better.
They have fixed debt costs while their wages rise, an excellent hedge against all this inflation we are dealing with.
On top of all that above, they have nested equity, and more than 40% of the homes in America have no mortgage debt at all. I am hoping that if demand gets weaker, home sellers won’t be so stingy and will lower their prices because they have so much equity now. Hey, a person can hope, right!
Enjoy the Memorial Day weekend and realize that not all economic cycles run with the same playbook. We have to learn to talk about the housing market in a more sophisticated way that doesn’t have to do with an epic housing crash for clicks. Sometimes a long, painful drag is even just as bad and that home prices rising way too much is the crisis now.
Here’s everything you need to know about rising mortgage rates and whether they will fall in the future.
Why are mortgages going up?
Rising interest rates mean it costs more to borrow money from banks and other lenders, while people who save money in banks receive more interest for putting their money into accounts.
The Bank of England says it is increasing interest rates to bring inflation down but it takes time to work, usually up to two years.
The idea is that higher interest rates mean less money is being spent in the UK and that brings down the overall spending in the economy and slows price rises down.
As mortgages are a type of credit, they are affected by rising interest rates.
However, not all mortgages are affected. People who have a fixed-rate mortgage will be largely insulated from interest rate rises until the fixed rate comes to an end and a new one needs to be negotiated.
People on tracker mortgages are more susceptible to interest rate rises because they follow the base rates set by the Bank of England.
Many mortgage lenders already put up fixed-rate mortgages for new customers ahead of the interest rate, according to Rightmove’s mortgage expert Matt Smith.
Get the latest news and insight into how the Big Issue magazine is made by signing up for the Inside Big Issue newsletter
The property expert said the average interest rate for a five-year fixed 85% mortgage rose from 4.44% to 4.52% ahead of the BoE announcement. That works out at an extra £14 a month for someone purchasing a typical property and spreading the cost over 25 years.
Smith said people on tracker mortgages may be hit harder by the BoE’s decision to raise interest rates.
The Rightmove expert said: “Those on a tracker mortgage will be more disappointed with the news, as they may have thought that the base rate had peaked in March given some of the positive signs for the wider economy, and this is another cost they will need to factor into their monthly budget when the full rate rise is passed on.”
The rise in interest rates has seen the housing market slow down with the number of transactions and mortgage approvals declining in April 2023.
There were 82,120 property transactions in the UK in April, according to HMRC’s seasonally adjusted figures. That represented an 8% drop compared to March while also a quarter down on April 2022.
Mortgage approvals also plunged. There were 48,690 mortgages given the greenlight in the UK in April 2023 according to the Bank of England’s statistics. That figure is 5% lower than in March and more than a quarter lower than a year ago and levels seen between 2018 and 2019.
How high will mortgage rates go in the UK?
It’s impossible to say how high interest rates may go without the aid of a crystal ball but the Bank of England has given some indication of how it expects things to progress in the future.
The central bank has targeted getting inflation down to 2% by the end of 2024 – it is currently at a “higher than expected” 8.7%.
BoE forecasts predict that interest rates will peak at 4.75% at the end of 2023 before falling to around 3.5% by 2025.
But while inflation remains high, there is the possibility of interest rates rising to counteract it and that could mean a 13th consecutive monthly rise might be on the cards in June.
In fact, stubborn inflation rates mean rises could continue for a while yet.
Are mortgage rates coming down in 2023?
With interest rates set to remain high until inflation starts to fall, that could see mortgage rates continue on an upward trajectory.
Rightmove’s Smith said: “Looking ahead, if the Bank of England outlines a positive view on the prospect for inflation and base rates, we could see mortgage rates fall, as they have done after recent base rate decisions. But if the bank is more cautious, we can expect rates to continue their upward trend in the short term.”
However, the bad news for people paying off mortgages is that a lot of the pain could still be to come.
Think tank Resolution Foundation said two-thirds of the eventual £12 billion increase in annual mortgage costs across Britain may still yet to be passed on.
That’s because fixed-rate mortgages have become more popular in recent years – the think tank said fixed-rate deals accounted for £4 out of every £10 spent before the financial crisis but now £9 out of every £10 lent is at a fixed rate.
Mortgages that are at a fixed rate for five years also became the most popular product between 2016 and 2022, overtaking two-year fixed mortgages.
more mortgage pain to come,” said Simon Pittaway, a senior economist at Resolution Foundation.
In fact, inflation figures in April suggested rising interest rates will continue. Inflation in the year up to April was 8.7% and although that was down from the 10.1% recorded in March it was still higher than expected. Financial analysts had reportedly anticipated inflation to fall to 8.2%.
That led to predictions the Bank of England could raise rates to as high as 5.5% in a bid to control inflation.
Kellie Steed, Uswitch’s mortgages expert, said: “While many experts thought that the series of consecutive Bank of England base rate rises were ending, more recent analysis suggests that it will reach 5.5% by the end of the year, with no signs of rates beginning to fall until at least February 2024.
“It’s clear that both recent and anticipated future base rate lifts, as well as increased swap rates, have already been factored into many lender’s rate decisions, with Nationwide, Halifax, Santander, Virgin Money and Atom mortgages all pushing up their fixed rates over the past few days.”
Your support changes lives. Find out how you can help us help more people by signing up for a subscription
What support is available if you’re struggling to pay your mortgage?
Rising mortgage payments may not be something that every household can absorb, particularly with the wider cost of living crisis driving up other costs.
If you are struggling to pay your mortgage, the first thing you should do is contact your lender to discuss your options.
If you are receiving universal credit or other benefits, you may be able to get a Support for Mortgage Interest Loan to help you cover rising interest payments. This is from the Department for Work and Pensions (DWP) and you have to repay the loan when you sell the property.
Additional support is available in Scotland through the Home Owners’ Support Fund. This is based on two schemes – the Mortgage to Shared Equity scheme will see the Scottish Government buy a stake in a property to reduce the loan while the Mortgage to Rent scheme allows a social landlord to buy a property and rent it back.
Around one in seven mortgage holders who seek help from StepChange are in arrears on their mortgage, the debt charity said.
“The situation is becoming increasingly precarious for many people and widespread problem debt is a risk, particularly for financially vulnerable households,” said Vikki Brownridge, chief executive of StepChange in a call for firms to be “proactive” in supporting people who are struggling to pay.
“For anyone worried about housing costs and their ability to cover payments, it’s important to reach out for help as early as possible, whether that’s through contacting their lender, or a free debt advice charity like StepChange.”
If you are struggling to pay, support from StepChange and other debt charities is available or you can call the National Debtline on 0808 808 4000 or contact Citizens Advice for advice.
Do you have a story to tell or opinions to share about this? We want to hear from you. Get in touch and tell us more.
Montana is a beautiful place to live, with its waterways and mountainous terrain. If you live and work in the state, you likely need a great place to park your money. The best banks in Montana give you everything you need to pay your bills and manage your money while also keeping fees to a minimum.
The banking industry in Montana is thriving, with a wide range of brick-and-mortar banks that include local, national, and regional banks. Online banking can be a great option, as well, offering reduced fees and savings interest rates that are above the national average.
14 Best Banks in Montana
This list offers a combination of different bank accounts to help you find the right combination of features to fit your needs.
1. First Interstate Bank
With branches in Montana, Arizona, Colorado, Idaho, Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota, Oregon, South Dakota, Washington, and Wyoming, First Interstate Bank has a fairly large footprint.
You’ll also get fee-free access to ATM withdrawals nationwide through the MoneyPass network. First Interstate’s free checking account waives monthly maintenance fees with direct deposit or at least a $250 daily balance. Account holders under the age of 24 also pay no service fees.
Fees:
$5 monthly service fee (waived with requirements)
$10 overdraft fee
Balance requirements:
$100 minimum deposit to open
No minimum balance requirements
ATMs:
Fee-free at First Interstate Bank ATMs
Fee-free at 37,000+ MoneyPass ATMs nationwide
$2.50 out-of-network ATM fee
Interest on balance:
Up to 0.25% APY on savings accounts
Up to 0.25% APY on money market accounts
Up to 4.29% APY on CDs
Additional perks:
Open a FirstRewards World Mastercard along with a checking account and get 5,000 bonus points
Wealth management services available
2. GO2bank
GO2bank is an online-only bank that integrates all your banking functions into its app. You’ll get most of the features you need to manage your bank account in the app, including mobile check deposit and the ability to transfer money from checking to your savings account.
But what sets GO2bank apart from other online and mobile banking options is its cash accessibility. Not only can you withdraw funds at any Allpoint ATM, but you can also deposit cash at more than 90,000 retail locations nationwide.
Fees:
$5 monthly fee
$15 overdraft fee
Balance requirements:
No minimum deposit to open
No minimum daily balance requirement
ATMs:
Fee-free at Allpoint ATMs nationwide
$3 out-of-network ATM fee
Interest on balance:
4.50% APY on savings accounts
Additional perks:
Deposit cash at 90,000+ retail locations nationwide
Secured credit card helps you boost your credit score with no credit check required
3. U.S. Bank
Multiple national banks have branches in Montana, including U.S. Bank, which operates 21 branches across 14 towns. You’ll find ATMs across Montana, but the bank doesn’t operate in every state. You will, however, enjoy fee-free access to cash while you’re traveling through the MoneyPass network, which currently operates about 40,000 ATMs nationwide.
The U.S. Bank Smartly checking account is an interest-earning account that doesn’t charge fees, provided certain conditions are met. These conditions include having monthly electronic deposits of $1,000 or more, maintaining a minimum average balance of at least $1,500, or possessing an eligible U.S. Bank credit card. Alternatively, you can also qualify for fee-free status if you reach one of the bank’s rewards tiers.
In addition, for a limited time, you can earn a $400 sign-up bonus with qualifying activities.
Fees:
$6.95 monthly maintenance fee (waived with requirements)
$35 overdraft fee (waived up to $50)
Balance requirements:
$25 minimum opening deposit
No minimum daily balance requirement
ATMs:
Fee-free at U.S. Bank ATMs
Fee-free at MoneyPass ATMs nationwide
$2.50 fee per out-of-network ATM transaction
Interest on balance:
Up to 0.05% APY on checking accounts
0.01% APY on savings accounts
Up to 4.75% APY on CDs
Up to 4.00% APY on money market accounts
Additional perks:
Smart Rewards program helps you earn rewards for purchases
Up to $750 bonus for business checking accounts
4. Stockman Bank of Montana
Those who prefer brick-and-mortar banks should take a look at Stockman Bank of Montana. As Montana’s largest family-owned bank, Stockman Bank offers branches and ATMs throughout the state. It might not be the best option if you regularly leave Montana, though, as you’ll pay an out-of-network ATM fee of $1 per transaction in addition to third-party ATM fees.
Fees:
No monthly maintenance fees
$15 overdraft fee
Balance requirements:
$100 minimum deposit to open
No minimum balance requirements
ATMs:
Fee-free at Stockman ATMs
$1 out-of-network ATM fee
Interest on balance:
Up to 0.60% APY on savings accounts
Up to 4.39% APY on CDs
Additional perks:
High ratings for customer service
Enhanced debit card security features in mobile banking app
5. Opportunity Bank of Montana
Based in Helena, Opportunity Bank of Montana is another community bank with access to a nationwide ATM network. There are two free checking account options.
Opportunity Checking has all the basics, but Opportunity Reward Checking issues 1% unlimited cash back on qualifying purchases. To qualify for reward checking, you’ll need to receive at least $1,000 in monthly direct deposits and have at least 10 qualifying purchase transactions on your debit card.
Fees:
No monthly service fees
$30 overdraft fee
Balance requirements:
$100 minimum deposit to open
No minimum daily balance requirement
ATMs:
Fee-free at Opportunity Bank ATMs
Fee-free at MoneyPass ATMs nationwide
$2 fee for ATMs outside the Opportunity and MoneyPass networks
Interest on balance:
Rates not publicly disclosed
Additional perks:
6. Glacier Bank
It might be a regional bank, but Glacier Bank has a heavy presence in its service area. You’ll find 222 branches in Montana, Idaho, Utah, Washington, Wyoming, Colorado, Arizona, and Nevada, and you can use your ATM card at any Allpoint ATM across the globe. In addition to local bank branches, you’ll also get great deals on checking accounts, as well as savings and business banking options.
Fees:
No monthly fees
$30 overdraft fee
Balance requirements:
No minimum deposit to open
No minimum balance requirement
ATMs:
Fee-free at Glacier Bank ATMs
Fee-free at 55,000 Allpoint ATMs worldwide
$2 fee for ATMs outside of Glacier Bank and Allpoint networks
Interest on balance:
Rates not publicly disclosed
Additional perks:
New checking account comes with a thank-you gift
Robust business banking services
7. Chime
If you have direct deposit, Chime is an online banking option that’s worth considering. Chime doesn’t charge monthly service fees on its checking account, and automatic savings features can help move money from your checking account to your savings account regularly. There is no cash deposit option with Chime, but you can withdraw cash from any Allpoint ATM.
Fees:
No monthly service fees
No overdraft fees
Balance requirements:
No minimum deposit to open
No minimum daily balance requirement
ATMs:
Fee-free at 60,000+ ATMs nationwide
$2.50 outside ATM fee
Interest on balance:
2.00% APY on savings accounts
Additional perks:
8. Chase
Chase Bank is another national bank with branches and ATMs in Montana. You’ll find branches in Helena and Billings. One of the best things about Chase is its nationwide presence. Chase has 4,800 branches and 16,000 ATMs spread across 48 states and the District of Columbia.
The most popular account is Chase Total Checking, which is fee-free if you receive at least $500 in electronic deposits monthly, have a daily balance of at least $1,500, or maintain an average combined balance of $5,000 across all your Chase Bank accounts.
Fees:
$12 monthly service fee (waived with requirements)
$34 overdraft fee
Balance requirements:
No minimum opening deposit
No minimum daily balance required
ATMs:
Fee-free at 15,000+ Chase ATMs
$3-$5 non-Chase ATM fee
Interest on balance:
0.01% APY on savings accounts
Up to 3.75% APY on CDs
Additional perks:
$300 bonus for new checking accounts
Autosave makes it easy to transfer funds to your savings account
9. Farmers State Bank
Another community bank is Farmers State Bank, which has locations across Montana. Farmers State Bank offers both e-banking and traditional banking services to meet all your needs. Although their checking accounts require an opening balance, you can find a fee-free option with no minimum balance requirements or fees.
Fees:
No monthly fees
Balance requirements:
$25 minimum deposit to open
No minimum balance requirement
ATMs:
Fee-free at Farmers State Bank locations
$1 non-Farmers State ATM fee
Interest on balance:
Up to 0.03% APY on savings accounts
Up to 2.27% APY on money market accounts
Up to 4.59% APY on CDs
Additional perks:
Consumer and business loans available
Scholarship program available for students
10. Trailwest Bank
Serving Ravalli, Missoula, Mineral, and Flathead Counties, Trailwest Bank is a locally owned bank with checking and savings options. One feature that sets Trailwest Bank apart is its rewards checking account. Your account comes with a debit card that issues unlimited $.10 rewards per purchase with no fees or minimum balance required.
Fees:
No monthly fees
$30 overdraft fee
Balance requirements:
$25 minimum deposit to open
No minimum daily balance requirement
ATMs:
Fee-free at Trailwest Bank locations
Fee-free at Allpoint ATMs nationwide
$2 ATM fee for transactions outside the Trailwest and Allpoint networks
Interest on balance:
Rates not publicly disclosed
Additional perks:
Wide range of personal loans available
Business checking and savings account options
11. Ally
Another online banking option is Ally, which stands apart from other online banks due to its competitive interest rates on checking accounts, savings accounts, CDs, and money market accounts.
Ally pays up to 0.25% APY on checking account balances, as well as 3.85% APY on savings accounts. One perk included with your Ally checking account is spending buckets, a tool that helps you better balance your budget.
Fees:
No monthly fees
No overdraft fees
Balance requirements:
No minimum opening deposit
No minimum daily balance requirement
ATMs:
Fee-free at 53,000+ Allpoint ATMs nationwide
Up to $10 in third-party ATM fees reimbursed monthly
Interest on balance:
0.25% APY on checking accounts
3.85% APY on savings accounts
Up to 4.80% APY on CDs
4.15% APY on money market accounts
Additional perks:
Robo Portfolios available to help you build wealth
CoverDraft helps you avoid overdrafts
12. Independence Bank
When it comes to local Montana banks, Independence Bank is a great option. You’ll find physical branch locations across Montana, each offering the in-person customer service you can only get from a brick-and-mortar bank. Independence Bank offers two checking accounts, including one fee-free option.
Fees:
No monthly maintenance fees
Balance requirements:
No minimum daily balance required
ATMs:
Fee-free at Independence Bank ATMs
Interest on balance:
Rates not publicly disclosed
Additional perks:
Robust business checking options
Special perks for account holders aged 60 and over
13. Valley Bank of Kalispell
Valley Bank of Kalispell is a community bank with more than a century of experience in the area. The bank’s main office is in downtown Kalispell, with an additional loan office in Eureka. You’ll find multiple basic checking accounts with no monthly maintenance fees, each with its own requirements and features.
Fees:
No monthly maintenance fees
Balance requirements:
$50 minimum opening deposit
No minimum balance requirements
ATMs:
Fee-free at Valley Bank ATMs
Fee-free at MoneyPass ATMs nationwide
Interest on balance:
Rates not publicly disclosed
Additional perks:
Easy check ordering
Wide variety of auto and recreational vehicle loan options
14. Wells Fargo
Wells Fargo is a national bank with branches in 4,900 branches in 37 states. You’ll get fee-free ATM use while traveling at 12,000 ATMs, but if you travel to one of the states without a Wells Fargo presence, Wells Fargo will charge a $2.50 fee for each non-Wells Fargo network ATM withdrawal.
This is in addition to the fee charged by third-party ATM providers. Currently, you can earn a $300 bonus by opening an Everyday Checking Account with a $25 deposit and receiving at least $1,000 in direct deposits within the first 90 days.
Fees:
$10 monthly fee (waived with requirements)
$35 overdraft fee
Balance requirements:
$25 minimum opening deposit
No minimum daily balance requirement
ATMs:
Fee-free at Wells Fargo ATMs nationwide
$2.50 fee for non-Wells Fargo ATM transactions
Interest on balance:
Up to 2.51% APY on savings
Up to 4.51% APY on CDs
Additional perks:
$300 bonus on new checking accounts
FICO score available in mobile banking app
How We Picked These Accounts
Banking needs vary from one person to another, so it can be tough to say what the best banks are. First, there’s the national vs. local debate. Someone who travels often might prefer a bank with branches everywhere, while others might prefer the sense of community you get with a local bank.
This list of best banks also takes into account the different banking services available. You might prioritize a free checking account over a high-yield savings account, for instance. In case you’re looking for a checking or savings account that earns money, we also included banks that pay interest on your savings account, CD, or money market account.
Frequently Asked Questions
What national banks are in Montana?
There are several national banks that have branches within the state of Montana, including U.S. Bank, Chase Bank, and Wells Fargo. If you live in Billings or Helena, Chase might work well for you, but otherwise, U.S. Bank and Wells Fargo will have the statewide coverage you need.
What is the most reliable bank?
Nothing’s guaranteed, but if you go with an FDIC-insured bank, you should be covered, even if you choose an online banking or extremely local bank. Large, corporate banks have a bigger asset base, so if stability is your biggest concern, that might be the way to go. However, there are plenty of FDIC-insured regional banks and small, local banks that are well-established and unlikely to go anywhere.
What Montana bank is ranked the best?
Opinions can vary from one source to another, so it’s important to look across multiple rankings to pull out some trends. When it comes to national banks with a large number of bank branches in Montana, U.S. Bank tops a lot of lists.
As for local banks, two banks receive quite a few mentions. Both Glacier Bank and Stockman Bank of Montana get high marks for their customer service and community focus. Since both of these options are among the best banks for keeping fees low, they’re worth considering.
What should I look for in a Montana bank?
With so many Montana banks, it can be tough to narrow it down to just one. Once you’ve ensured a bank is FDIC insured, it’s a matter of weighing the cost against the rewards. That includes perks like rewards for debit card transactions and checking accounts that pay interest. Here are some factors to consider as you’re researching the best banks.
Overall Better Fee Structure
You’ll see plenty of banks that offer free checking account options, but it’s important to look at the big picture. You’ll see account fees charged for the following:
In most cases, you won’t be penalized for not using an account as long as it doesn’t sit dormant for a while, but it’s essential to look at that. Also consider ATM availability. If you think you’ll regularly need to withdraw cash, the best checking accounts will give you fee-free access whether you’re at home or traveling.
Easy-to-Achieve Fee Waivers
Most online banks and community banks have free checking. But many national and regional banks have strings attached to their free accounts. The best checking accounts have attainable fee waivers, if any at all. Pay close attention to banks that require a lot of debit card purchases every month if you tend to spend more using cash or a credit card.
Some fee waivers will also require a minimum daily balance. This goes for both checking and savings accounts. Before choosing an account, make sure you can maintain that balance, day after day, or be prepared to pay the fee.
Low (or No) Minimum Deposits
Banks often require a small deposit on the account holder’s part to establish checking and savings. But you’ll find plenty of free online banking and smaller local banks that waive the minimum deposit to let you get started with no money whatsoever.
Among the banks that require an opening deposit, though, you’ll find options with small requirements. You might find a bank that lets you open a savings account with just $25 or $50 with a free or low deposit to establish checking. If it’s lower than what you’d put into savings with a different bank, that small checking deposit might be worth it.
Competitive Interest Rates
In addition to fees, you’ll also need to look at the return you’ll get on your savings. The best savings accounts offer a high yield without requiring a ridiculously high balance. Take a look at the interest rate and compare it to other banks to make sure you’re getting the best deal.
Variety of Accounts and Loans
Whether the account pays a higher interest rate is a great consideration, but there’s a benefit to having a one-stop shop. You might find community banks and credit unions offer highly competitive interest rate options on personal loans.
Being an account holder might even get you a discount on auto loans and mortgages. Although you can always shop for loans with other banks, some people prefer to have everything in one place.
Digital banking
Over the years, banking has moved to mobile devices and websites. Whether you go with a large or small bank, take a quick look at the digital offerings. The app should make it easy to pay bills, transfer funds, and keep an eye on your accounts. You might find an online bank gives you better options in this area, particularly if you don’t need to visit a local branch and you rarely deposit cash.
Most importantly, make sure the bank’s mobile app works with your particular mobile device. The app can’t help you at all if you can’t access it. Even if you rarely use the app, it’s a handy tool to have if you suddenly need to take a look at your account when you’re away from your computer.
The best savings accounts and checking accounts offer all the amenities you need while also keeping your balances strong. With so many banks and credit unions in Montana, it’s fairly easy to find a solution that will meet your own needs.