Secretary of the U.S. Department of Housing and Urban Development (HUD) Marcia Fudge suggested to a congressional committee that the department could consider eliminating life-of-loan premium requirements for mortgages backed by the Federal Housing Administration (FHA), but did not offer any indication about the issue’s priority level at HUD.
Sitting for a HUD oversight hearing conducted by the U.S. House of Representatives Financial Services Committee on Jan. 11, Rep. Brad Sherman (D-Calif.) first brought the issue up by saying it is an important element to address for the kinds of people who most commonly make use of FHA mortgage programs.
“I don’t have to tell you, that’s working people, people of color [and] first-time homebuyers,” Sherman said. “They have to pay the mortgage insurance premiums, [which] raises their costs. Are you willing to look at not requiring them to make these payments through the life of the loan, but rather to eliminate the payments when they get a certain loan to value as the value of the house goes up?”
“Yes, I’m willing to look at it,” Fudge responded.
Nearly an hour after that exchange, Rep. Gregory Meeks (D-N.Y.) brought the topic up again.
“My question would be do you think there could be a scenario where FHA mortgage insurance premiums could follow a model that is similar to the private mortgage insurance [market] where, after a period of time you get equity in the home [that then] drops the monthly cost? Is that something you think we could work on, and that HUD could do?”
“I would love to see it happen,” Fudge responded.
When interviewed in December, leaders at multiple housing advocacy organizations including the Mortgage Bankers Association (MBA) and the National Housing Conference (NHC) cited the life of loan requirement as a key affordability issue in 2024.
“We think that FHA should consider further changes to the mortgage insurance premium, perhaps including the elimination of the life of loan premium requirement,” said Bob Broeksmit president and CEO of MBA to HousingWire in December. “On an FHA loan, you keep paying the mortgage insurance premium until you pay the loan off whereas in a conventional loan, once your equity reaches a certain point, you can get the mortgage insurance dropped.”
When asked about an MIP cut, NHC President and CEO David Dworkin said the “bigger issue” is the life of loan requirement, and that the MIP is currently “at a reasonable level.”
“[Life of loan] makes FHA a much more negative execution for the consumer,” Dworkin said last month. “Let’s say I have more than 20 or 25% equity in my house. I shouldn’t be paying mortgage insurance to FHA; I would not have to be doing it if I had a loan that was bought by Fannie Mae or Freddie Mac. And so I think that I’d like to see that addressed before we talk about another MIP cut.”
An IPO, or initial public offering, refers to privately owned companies selling shares of the business to the general public for the first time.
“Going public” has benefits: It can boost a company’s profile, bring prestige to the management team, and raise cash that can be used for expanding the business.
But there are downsides to going public as well. The IPO process can be costly and time-consuming, and subject the business to a high level of scrutiny.
Key Points
• An IPO, or initial public offering, is when a privately owned company sells shares of the business to the general public for the first time.
• Companies typically hire investment bankers and lawyers to help them with the IPO process.
• Reasons for a company IPO include raising capital, providing an exit opportunity for early stakeholders, and gaining more liquidity and publicity.
• Pros of an IPO include an opportunity to raise capital, future access to capital, increased liquidity, and exposure.
• Cons of an IPO include costs and time, disclosure obligations, liability, and a loss of managerial flexibility.
IPO Definition
IPO stands for “initial public offering,” which marks the first time a private corporation offers its securities for sale to the public.
In such a process, a portion of the firm’s shares are transferred from private ownership by company insiders to public markets, so that both retail and institutional investors can buy IPO shares.
How Do IPOs Work?
To have an IPO, a company must file a prospectus with the SEC. The company will use the prospectus to solicit investors, and it includes key information like the terms of the securities offered and the business’s overall financial condition.
Behind the scenes, companies typically hire investment bankers and lawyers to help them with the IPO process. The investment bankers act as underwriters, or buyers of the shares from the company before transferring them to the public market. The underwriters at the investment bank help the company determine the offering price, the number of shares that will be offered, and other relevant details.
The company will also apply to list their stock on one of the different stock exchanges, like the New York Stock Exchange or Nasdaq Stock Exchange.
Access BrightSpring Health IPO shares with SoFi Invest®.
BrightSpring Health ($BTSG) just filed to go public. Open an Active Invest account, check out the prospectus, and request shares for an opportunity to invest in the IPO.
*No offer to buy the securities can be accepted and no part of the purchase price can be received until the registration statement has become effective, and any such offer may be withdrawn or revoked, without obligation or commitment of any kind, at any time prior to notice of its acceptance given after the effective date. To see if participating in an IPO is right for you, please fill out your investor profile prior to submitting any indication of interest. Investing in IPOs comes with risk, including the risk of loss. Please visit sofi.com/iporisk/. Offered via SoFi Securities LLC, Member FINRA/SIPC.
IPO Price vs Opening Price
The IPO price is the price at which shares of a company are set before they are sold on a stock exchange. As soon as markets open and the stock is actively traded, that price begins to go up or down depending on consumer demand, which is known as the opening price.
💡 Quick Tip: The best stock trading app? That’s a personal preference, of course. Generally speaking, though, a great app is one with an intuitive interface and powerful features to help make trades quickly and easily.
History of IPOs
While there are some indications that shares of businesses were traded during the Roman Republic, the first modern IPO is widely considered to have been offered by the Dutch East India Company in the early 1600s. In general, the Dutch are credited with inventing the stock exchange, with shares of the Dutch East India Company being the sole company trading in Amsterdam for many years.
In the U.S., Bank of North America conducted the first American IPO, which likely took place in 1783. A report claims investors hiding cash in carriages evaded British soldiers to buy shares of the first American IPO.
Henry Goldman led investment bank Goldman Sachs’ first IPO — United Cigar Manufacturers Co. — in 1906, pioneering a new way of valuing companies. A challenge for retail companies at the time was that they lacked hard assets, as other big businesses like railroads had at the time. Goldman pushed to value companies based on their income or earnings, which remains a key part of IPO valuations today.
Why Does A Company IPO, or “Go Public”?
Answering the question, “what’s an IPO?” doesn’t explain why a company “goes public” — an important detail in the process. Because an IPO requires a significant amount of time and resources, a business probably has good reason to go through the trouble.
Raising Money
A common reason is to raise capital (money) for possible expansion. Prior to an IPO, a private company may procure funding through angel investors, venture capitalists, private investors, and so on.
A company may reach a size where it is no longer able to procure enough capital from these sources to fund further expansion. Offering sales of stock to the public may allow a company to access this rapid influx of investment capital. 💡 Quick Tip: Keen to invest in an IPO? Be sure to check with your brokerage about what’s required. Typically IPO stock is available only to eligible investors.
Exit Opportunity
An IPO may be a way for early stakeholders, such as angel investors and venture-capital firms, to cash out of their holdings. Venture-capital firms in particular have their own investors that need to provide returns for. IPOs are a way for them to transfer their share of a private company by selling their equity to public investors.
More Liquidity
Venture-capital firms and angel investors aren’t the only ones who may be seeking more liquidity for stakes in companies. Liquidity refers to the ease with which an investor can sell an asset. Stocks tend to be much more liquid assets than private-company stakes.
Hence, employees with equity options can also use IPOs as a way to gain more liquidity for their holdings, although they are usually subject to lock-up periods.
Publicity
From the roadshow that investment banks hold to inform potential investors about the company to when executives may ring the opening bell at a stock exchange, an IPO can bring out greater publicity for a company.
Being listed as a public company also exposes a business to a wider variety of investors, allowing the business to obtain more name recognition.
Pros and Cons of an IPO
As with any business decision, there are downsides and risks to going public that should be considered in conjunction with the potential benefits. Here’s a look at a few:
Pros
Cons
An IPO may allow a company to raise capital on a scale otherwise unavailable to it. It can use these funds to expand the business, build infrastructure, and to fund research and development.
Public companies must keep the public informed about their business operations and finance. They are subject to a host of filing requirements from the SEC, from initial disclosure obligations to quarterly and annual financial reports.
After an IPO, companies can issue more stock, which can help with future efforts to raise capital.
Companies and company leaders may be liable if legal obligations like quarterly and annual filings aren’t met.
IPOs increase liquidity, which allows business owners and employees to more easily exercise stock options or sell shares.
Public companies must consider the concerns and opinions of a potentially vast pool of investors. Private companies on the other hand, often answer to only a small group of owners and investors.
Public companies may use stock as payment when acquiring or merging with other businesses.
Public companies are under more scrutiny than their private counterparts, as they’re forced to disclose information about their business operations.
IPOs can generate a lot of publicity.
Going public is time consuming and expensive.
Participating in an IPO: 3 Steps to Buying IPO Stock
1. Read the Prospectus
IPOs can be hard to analyze: It’s difficult to learn much about a company going public for the first time. There’s not a lot of information floating around beforehand since when companies are private, they don’t really have to disclose any earnings with the SEC. Before an IPO, you can look at two documents to get information about the company: Form S-1 and the red herring prospectus.
2. Find Brokerage
If you want to purchase shares of a stock in an IPO, you’ll most commonly have to go through a broker. Some firms also let you buy shares at the offering price as opposed to the trading price once the stock is on the public market.
3. Request Shares
Once a brokerage account is set up, you can let your broker know electronically or over the phone how many shares of what stock you’d like to buy and what order type. The broker will execute the trade for you, usually for a fee, although many online brokerages now offer zero commission trading.
Who Can Buy IPO Stock?
Not everyone has the ability to buy shares at the IPO price. When a company wants to go public, they typically hire an underwriter — an investment bank — that structures the IPO and drums up interest among investors. The underwriter acquires shares of the company and sets a price for them based on how much money the company wants to raise and how much demand they think there is for the stock.
The underwriter will likely offer IPO shares to its institutional investors, and it may reserve some for other people close to the company. The company wants these initial shareholders to remain invested for the long-term and tries to avoid allocating to those who may want to sell right after a first-day pop in the share price.
Investment banks go through a relatively complicated process in part to help them avoid some of the risks associated with a company going public for the first time. It’s possible that the IPO could become oversubscribed, e.g when there are more buyers lined up for the stock at the IPO price than there are actual shares.
When Can You Sell IPO Stock?
Shortly after a company’s IPO there may be a period in which its stock price experiences a downturn as a result of the lock-up period ending.
The IPO lock-up period is a restriction placed upon investors who acquired company stock before it went public that keeps them from selling their shares for a certain period of time after the IPO. The lock-up period typically ranges from 90 to 180 days. It’s meant to prevent too many shares in the early days of the IPO from flooding the market and driving prices down.
However, once the period is over, it can be a bit of a free-for-all as early investors cash in on their stocks. It may be worth waiting for this period to pass before buying shares in a newly public company.
Things to Know Before Investing in an IPO
An IPO, by definition, gives the investing public an opportunity to own the stock of a newly public company. However, the SEC warns that IPOs can be risky and speculative investments.
IPO Market Price
To understand why investing in an IPO can be risky, it is helpful to know that the business valuation and offering price have not been determined not by the market forces of supply and demand, as is the case for stocks trading openly in a market exchange.
Instead, the offering price is usually determined by the company and the underwriters who negotiate a price based on an often-competing set of interests of involved parties.
Post-IPO Trading
Purchasing shares in the market immediately following an IPO can also be risky. Underwriters may do what they can to buoy the trading price initially, keeping it from falling too far below the offering price.
Meanwhile, IPO lock-up periods may stop early investors and company executives from cashing out immediately after the offering. The concern to investors is what happens to the price once this support ends.
Data from Dealogic shows that since 2010, a quarter of U.S. IPOs have seen losses after their first day.
IPO Due Diligence
Investors with the option to invest in an IPO should do so only after having conducted their due diligence. The SEC states that “being well informed is critical in deciding whether to invest. Therefore, it is important to review the prospectus and ask questions when researching an IPO.”
Investors should receive a copy of the prospectus before their broker confirms the sale. To read the prospectus before then, check with the company’s most recent registration statement on EDGAR, the SEC’s public filing system.
IPO Alternatives
Since the heady days of the dot-com bubble, when many new companies were going public, startups have become more disgruntled with the traditional IPO process. Some of these businesses often complain that the IPO model can be time-consuming and expensive.
Particularly in Silicon Valley, the U.S. startup capital, many companies are taking longer to go public. Hence, the emergence of so many unicorn companies — businesses with valuations of $1 billion or greater.
In recent years, alternatives to the traditional IPO process have also emerged. Here’s a closer look at some of them.
Recommended: Guide to Tech IPOs
Direct Listings
In direct listings, private companies skip the process of hiring an investment bank as an underwriter. A bank may still offer advice to the company, but their role tends to be smaller. Instead, the private company relies on an auction system by the stock exchange to set their IPO price.
Companies with bigger name brands that don’t need the roadshows tend to pick the direct-listing route.
SPACs
Special purpose acquisition companies or SPACs have become another common way to go public. With SPACs, a blank-check company is listed on the public stock market.
These businesses typically have no operations, but instead a “sponsor” pledges to seek a private company to buy. Once a private-company target is found, it merges with the SPAC, going public in the process.
SPACs are often a speedier way to go public. They became wildly popular in 2020 and 2021 as many famous sponsors launched SPACs.
Crowdfunding
Crowdfunding is collecting small amounts of money from a bigger group of individuals. The advent of social media and digital platforms have expanded the possibilities for crowdfunding.
The Takeaway
Initial public offerings or IPOs are a key part of U.S. capital markets, allowing private businesses to enter the world’s biggest public market. Conducting an IPO is a multi-step, expensive process for private companies but allows them to significantly expand their reach when it comes to fundraising, liquidity and brand recognition.
For investors, buying an IPO stock can be tempting because of the potential of getting in on a company’s growth early and benefiting from its expansion. However, it’s important to know that many IPO stocks also tend to be untested, meaning their businesses are newer and less stable, and that the stock price can fluctuate — creating considerable risk for investors.
Whether you’re curious about exploring IPOs, or interested in traditional stocks and exchange-traded funds (ETFs), you can get started by opening an account on the SoFi Invest® brokerage platform. On SoFi Invest, eligible SoFi members have the opportunity to trade IPO shares, and there are no account minimums for those with an Active Investing account. As with any investment, it’s wise to consider your overall portfolio goals in order to assess whether IPO investing is right for you, given the risks of volatility and loss.
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Investing in an Initial Public Offering (IPO) involves substantial risk, including the risk of loss. Further, there are a variety of risk factors to consider when investing in an IPO, including but not limited to, unproven management, significant debt, and lack of operating history. For a comprehensive discussion of these risks please refer to SoFi Securities’ IPO Risk Disclosure Statement. IPOs offered through SoFi Securities are not a recommendation and investors should carefully read the offering prospectus to determine whether an offering is consistent with their investment objectives, risk tolerance, and financial situation.
New offerings generally have high demand and there are a limited number of shares available for distribution to participants. Many customers may not be allocated shares and share allocations may be significantly smaller than the shares requested in the customer’s initial offer (Indication of Interest). For SoFi’s allocation procedures please refer to IPO Allocation Procedures. Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
Renting in Portland? Discover the most affordable places to rent in 2024.
As the Rose City, Portland offers beautiful nature, bustling city atmosphere and riverfront views, all without leaving the city. Whether you’re new to the city or curious about rental trends, you may wonder, how much does rent cost in Portland? On average, monthly rent prices are $1,217 for a studio, $1,494 for a one-bedroom unit and $1,795 for a two-bedroom unit. Depending on your budget, these prices may be out of your range.
Don’t worry, we’ve got you covered with these surrounding areas. In this article, we set out to find the most affordable Portland suburbs for renters. These four suburbs offer a breath of fresh air with their serene landscapes, warm communities and more reasonable prices, so you can still experience Oregon’s beauty while sticking to your budget.
#1: Aloha
Average rent for a one-bedroom: $1,295
Average rent for a two-bedroom: $1,695
Distance from Portland: 12 miles
Apartments for rent in Aloha
The first spot on our list of affordable Portland suburbs is Aloha. This area is located about 12 miles west of Portland, so you’re not too far from downtown. The average rent for a one-bedroom unit in Aloha is about $200 less than in Portland, meaning you’ll save a bit each month. This affordable suburb is great if you’re looking for a relaxed and outdoorsy community. You’ll find a lot of green spaces and parks in Aloha, like Mountain View Champions Park, Tualatin Hills Nature Park, and Hazeldale Park.
#2: Clackamas
Average rent for a studio: $1,175
Average rent for a one-bedroom: $1,305
Average rent for a two-bedroom: $1,550
Distance from Portland: 12 miles
Apartments for rent in Clackamas Just 12 miles southeast of Portland is our second suburb, Clackamas. The area is home to about 7,000 residents, and the average rents are much less than in Portland. If you’re planning to rent a two-bedroom unit, the monthly cost is approximately $1,550. On the other hand, a two-bedroom unit is about $1,795 in Portland. Clackamas provides opportunities for outdoor adventure with the nearby Mount Talbert Nature Park, offering hiking trails and beautiful views of the surrounding landscape. Additionally, the Clackamas Town Center is a popular shopping destination featuring a variety of shops and restaurants.
#3: Beaverton
Average rent for a studio: $1,650
Average rent for a one-bedroom: $1,435
Average rent for a two-bedroom: $1,747
Distance from Portland: 8 miles
Apartments for rent in Beaverton
Another great suburb for renters is Beaverton, which is roughly 8 miles west of Portland. You’ll save about $60 a month, as the average rent for a one-bedroom unit is $1,435, compared to Portland’s $1,494. Home to Tualatin Hills Nature Park, Beaverton offers lots of outdoor activities like hiking and exploring the nature preserve. You can also check out the vibrant food scene in the downtown area, with diverse restaurants and eateries.
#4: Gresham
Average rent for a studio: $1,279
Average rent for a one-bedroom: $1,495
Average rent for a two-bedroom: $1,581
Distance from Portland: 17 miles
Apartments for rent in Gresham
A bit farther from Portland, Gresham is about 17 miles east, but it offers an affordable suburban alternative. The slightly longer commute might be a trade-off worth considering. While the average rent for a one-bedroom unit is the same in Portland, if you’re looking for a two-bedroom unit, the monthly rent is about $210 less than in Portland.
Gresham provides access to the stunning Mount Hood National Forest, offering hiking, camping, and a range of outdoor activities for nature enthusiasts. You can also explore the historic downtown area, known for its local shops, restaurants, and events, making it a great spot to immerse yourself in the town’s character and charm. If you’re looking to take the leap from renter to buyer, make sure to also check out the most affordable Portland suburbs to buy a home.
Methodology
Affordability is based on whether a suburb’s one and two-bedroom rent was less than Portland and under 20 miles from downtown Portland. Average rental data from Portland rental market trends on October 26, 2023. Population data sourced from the United States Census Bureau.
At Rent., our goal is to be the most efficient digital resource to help people find and live in a place they love. We strive to help renters make informed decisions by providing them with valuable information and advice, including money-saving tips, local guides, HD photos and certified ratings and reviews from actual residents.
If you fly enough, experiencing a flight delay is practically inevitable. Between weather issues, maintenance delays and air traffic control staffing issues, all airlines are bound to face delays.
Alaska Airlines has recently been the best U.S. airline at minimizing delays, reporting the highest rate of on-time flights through June 2023. Still, nearly one in five Alaska flights have pushed back departure times for one reason or another.
In these situations, what kind of flight delay compensation are passengers entitled to? Here’s a recap of Alaska’s compensation policies for you.
6 things to know about Alaska flight delay compensation
1. You’re more likely to get flight delay compensation on Alaska than any other U.S. airline
At least on paper, Alaska treats its delayed passengers relatively well. According to data from the U.S. Department of Transportation (DOT), Alaska Airlines commits to providing compensation for the most aspects of a controllable flight delay: seven out of eight factors. The next-best airline is JetBlue Airways with six of the eight commitments. American Airlines, Delta Air Lines and United Airlines tie for third place with five of the eight commitments.
2. Alaska Airlines doesn’t guarantee cash compensation for delays
The only of the eight factors that Alaska does not commit to provide is the one travelers would probably like to see most: Cash compensation for delays more than three hours past the scheduled departure time.
Unfortunately, no additional cash compensation is required by Alaska policies or current DOT regulations (though they are required in Europe). At best, you may be able to get a full refund of the price that you paid for your flight — as long as your delay is eligible. And unfortunately, Alaska doesn’t define how long of a flight delay is required to get a refund.
3. Alaska Airlines offers bonus miles or a discount code for lengthy delays
Although it doesn’t offer cash compensation for delays, Alaska Airlines offers two compensation options in the case of flight delays over three hours — with the exact compensation depending on the length of the delay:
A discount code of at least $50 for future travel.
Discount codes are valid for one year from the date of issuance toward a future Alaska flight. Alaska miles don’t expire, although your account may be deactivated for lack of activity.
🤓Nerdy Tip
NerdWallet values Alaska miles at 1.4 cents per mile. Unless you don’t have any plans to take an Alaska flight in the next year, we recommend opting for a $50 voucher instead of 2,000 miles. At NerdWallet valuations, 2,000 miles are only worth $28.
It’s worth noting that Alaska Airlines is the only U.S. airline that commits to providing frequent flyer miles in case of a delay. JetBlue is the only other U.S. airline that offers a travel voucher for delays of three hours or more. Other U.S. airlines may provide bonus miles or a voucher to certain travelers after certain delays, but it isn’t part of their stated policy.
4. Claim a free meal or overnight accommodation on certain delays
In addition to providing miles or a travel voucher, Alaska Airlines also pledges to provide food and lodging during a delay of three or more hours. First, passengers waiting out the delay at the airport will get a “reasonable meal” — although that’s not further defined.
Plus, travelers needing to wait out an overnight delay will receive complimentary hotel accommodations, as long as they are at an airport more than 100 miles from their home. Alaska Airlines agrees to cover both the hotel and round-trip ground transportation to and from the hotel.
5. Only certain Alaska flight delays are eligible for compensation
There’s a big asterisk to all that we’ve covered so far: Alaska Airlines only compensates travelers, provides meals and covers overnight accommodation for eligible delays. Alaska Airlines won’t provide any compensation or amenities if your delay is due to:
Air traffic control.
Weather situations.
Passenger’s illness.
Other extraordinary circumstances beyond the airline’s control that occur at cities within your intended flight routing.
In these cases, you’ll need to rely on trip delay insurance — if you have it — to cover your meal and lodging costs. For example, if you booked your flight with the Chase Sapphire Reserve® and your flight is delayed more than six hours or overnight, you’ll get up to $500 per passenger in reimbursements for expenses like meals and lodging.
6. Know all of your options during a flight delay
Even if you aren’t due Alaska flight delay compensation, you should know you have options during a delay. If your flight is canceled or significantly delayed, gate agents will likely want to rebook you on a later Alaska Airlines flight. However, the airline’s stated policy is to rebook you on partner airlines at no additional cost when there’s a significant delay.
Check your options using a flight search tool like Google Flights. Note that Alaska Airlines is part of the Oneworld Alliance along with American Airlines, so American will be a top option. In addition, the airline has struck partnerships with other carriers on which it may rebook you. Alaska flyers have reported being rebooked on American, Delta and United in the case of past delays — although these partnerships can change at any time.
Alaska flight delay compensation recapped
Alaska Airlines offers more to passengers than other U.S. airlines when it comes to delay compensation. In addition to standard provisions — such as meals and overnight lodging — the airline also offers bonus miles or a travel voucher when eligible delays stretch beyond three hours. Plus, Alaska also partners with several competitor airlines to help get travelers where they need to go.
However, all of these types of compensation require that you’re on an eligible delay. If your flight is delayed or canceled due to weather, air traffic control or another element deemed outside of the airline’s control, you’ll need to rely on travel insurance or credit card travel protections to cover these expenses.
How to maximize your rewards
You want a travel credit card that prioritizes what’s important to you. Here are our picks for the best travel credit cards of 2024, including those best for:
RICHLAND TWP., Pa. – Eagles, Flyers, 76ers and Phillies fans will soon have a new spot to score jerseys, hats and other fan gear in upper Bucks County.
Rally House, a specialty sports store chain offering an expansive selection of apparel, gifts, home decor and other types of merchandise representing local NCAA, NFL, NBA, MLB, NFL and MLS teams, is planning to open a new location in a few months at 244 N. West End Blvd. in Richland Township.
The new store will fill the space previously occupied by Tuesday Morning, a home goods retailer, in the Trainer’s Corner shopping center, just outside Quakertown.
“We are opening a new Rally House location in Quakertown and excited to get it open to residents and fans,” stated Colin Novick, Rally House’s media and production manager. “We are aiming to have this store open in early spring in April.”
Rally House traces its origins to 1989, when Tim and Mabel “Peg” Liebert started “Mabel’s Kitchen,” a catalog featuring Kansas-related apparel, gifts and other merchandise.
Mabel’s Kitchen evolved into another business, “Kansas Sampler,” which featured five Kansas City area stores selling Kansas Jayhawks, Kansas State Wildcats, Kansas City Chiefs and Kansas City Royals gear.
The company experienced great success, and the Lieberts eventually decided to expand the business to other markets under the “Rally House” name in 2008, according to a company description.
Today, Rally House has more than 180 locations across 18 states. The new Quakertown area store will supplement more than a dozen other regional locations, including a Lehigh Valley shop in Lower Macungie Township, two other Bucks County stores and several locations in Montgomery County.
Rally House stays true to its roots by providing “an impeccable selection of local and team-related apparel and gifts, including exclusive designs available only at Rally House,” according to the company’s website.
Regional stores offer a wide array of merchandise, including clothing, blankets, glassware and signs, featuring logos and designs of Philadelphia and surrounding area teams.
Customers at the Lehigh Valley store, for example, can shop plenty of Philadelphia Eagles, Flyers, 76ers and Phillies items, along with merchandise showcasing designs of various regional universities, including Lehigh, Kutztown, Penn State, Temple, Villanova, Drexel, St. Joseph’s and West Chester.
Other area sports teams, including Lehigh Valley IronPigs and Philadelphia Union, are also represented.
Philadelphia area teams are primarily featured, but there is also a selection of merchandise featuring other popular teams such as the New York Yankees, Pittsburgh Steelers and New York Giants.
Customers can browse apparel such as T-shirts, sweatshirts, coats and shorts, along with footwear and fashion accessories such as slippers, hats, scarves and jewelry.
A wide variety of other gifts and home décor include items such as glassware, coasters, garden gnomes and flags, foam fingers, stuffed animals, keychains, pens, pennants, ornaments, cornhole boards, trash cans, calendars and umbrellas.
“Much like each person, no two Rally House stores are identical,” a message on the company’s website reads.
“They each carry merchandise customized and tailored to the specific collegiate and professional teams in that area. In additional to team apparel, Rally House offers a wide selection of local styles. This includes our very own exclusive line of RALLY Brand™ merchandise. The same items we have in our stores can also be found online at any time. We want to make things as easy and seamless as possible for fans who want to show their unique team spirit, regardless of wherever they live or shop.”
In addition to selling items relating to local sports teams, Rally House also works in conjunction with local sports stars and celebrities. These partnerships manifest themselves in the form of ticket giveaways, autograph sessions, radio remote contests and meet-and-greet events.
For the latest Rally House updates, follow the business’ pages on Facebook and Instagram. Info: rallyhouse.com.
Allentown updates
New Wawa could take Brass Rail’s spot next to Sheetz
ALLENTOWN, Pa. – The Allentown Planning Commission discussed a preliminary/final land development plan for a proposed Wawa convenience store Tuesday afternoon at city hall.
The proposal is offered for 3015 Lehigh St., the site of the former Brass Rail property. The plan involves consolidating two of the three existing lots, demolishing existing features on the consolidated lot and constructing the convenience store.
Should the proposed Wawa come to fruition, it would operate about 100 yards away from a Sheetz convenience store and gas station. Sheetz opened in August 2023 at the southeast corner of Lehigh Street and 29th Street, near Auto Zone. Additional nearby convenience stores and gas stations include a Turkey Hill on the other side of Sheetz and another Wawa about a mile north on Lehigh Street. Full story here.
Downtown Allentown Market welcomes new food vendor, says goodbye to another
ALLENTOWN, Pa. – The new year is bringing more changes to the Downtown Allentown Market, with one food vendor recently setting up shop and another bidding farewell.
Joining the 27 N. Seventh St. market is Randevoo, offering a twist on traditional Asian fusion cuisine.
Randevoo held a soft opening on Jan. 5 in space that was previously occupied by two other Asian concepts, Shinsen and Honmono Sushi, the latter of which closed in June following the owner’s move to Florida. Read more here.
Lower Macungie news
Lower Macungie planners recommend approval for Topgolf
L. MACUNGIE TWP., Pa. – The Lower Macungie Township Planning Commission recommend approval of a preliminary/final plan of an open-air entertainment facility Tuesday night at the administration building.
The plan, offered by Jaindl Land Co., involves the proposed Topgolf facility at the Lehigh Valley Town Center, slated for 361 Schantz Road and 4511 Cedarbrook Road. The proposed Topgolf and Town Center have already received conditional use approval.
Tuesday night’s recommendation involved the Topgolf facility, which includes a 72-bay golf driving range with a two-story, 20,460-square-foot building and associated parking on 11.5 acres within the Lehigh Valley Town Center. Topgolf will have site access from a private drive in association with the Town Center development. Read more.
New Lehigh County car wash to open later this month, joining 2 sister locations
LOWER MACUNGIE TWP., Pa. – Drivers looking to keep their vehicles in tip-top shape will soon have a new car wash to frequent in the Lehigh Valley.
The Car Wash on Hamilton, committed to providing customers with a “seamless and efficient car wash experience,” is expected to open by the end of January at 6794 Hamilton Blvd. in Lower Macungie Township.
The newly constructed car wash, totaling around 4,000 square feet, will supplement two sister locations: The Car Wash on Broadway, which opened in 2015 at 4540 Broadway in South Whitehall Township, and The Car Wash on West Main, which opened in October at 200 W. Main St. in Macungie. Full story here.
Bethlehem area buzz
Bethlehem restaurant closes, but owners continuing to serve customers via food trailers
BETHLEHEM, Pa. – The owners of a Bethlehem restaurant, serving up burgers, ice cream and more, have closed their eatery to focus on mobile operations.
Husband and wife Norman and Jill Matthews of Bangor have decided to shutter their 3.5-year-old south Bethlehem eatery, Dinky’s Ice Cream Parlor & Grill, and transition to a “completely mobile” business model, according to a post on Dinky’s Facebook page.
“That means we have two trailers, one that is just purely ice cream and the other is a food/ice cream truck,” they announced on the business’ Facebook page. “We will be going to different events, fairs, parties, food truck gatherings and hopefully breweries in the in the surrounding areas. Then we can get caught up with our loyal customers. Read more here.
Family-run restaurant rebrands with new name, look in Bethlehem
BETHLEHEM, Pa. – A popular fast-casual eatery, serving “gourmet quality comfort food,” is kicking off the new year with some changes in Northampton County.
Hummus House, a family-run restaurant known for its fresh sandwiches, salads, wraps and more, has rebranded to HandHeldz at 518 E. Third St. on Bethlehem’s South Side.
New signage was installed on Monday, and the business’ first day as HandHeldz was on Tuesday. Read more.
New expansive facility offers prime training space for athletes, teams in Northampton County
BETHLEHEM TWP., Pa. – A new indoor training facility is helping sports teams, clubs and athletes stay at the top of their game in the Lehigh Valley.
Powerballers Athletic Center, offering year-round training opportunities and a top-tier environment where youth and individuals of all ages can passionately pursue and enjoy their sport, opened in late November at 2550 Brodhead Road in Bethlehem Township.
The 14,000-square-foot facility features 10,000 square feet of flexible turf space, over 1,200 square feet of strength training space, batting cages, certified coaches and a climate-controlled environment. Full story here.
Expanding businesses
HiJinx Brewing Company to bring ‘fun and friendly’ vibe to 2nd Lehigh Valley location
A popular Allentown brewery is expanding its footprint in Lehigh County.
HiJinx Brewing Company, producing a wide array of craft beers that include IPAs, pilsners, porters and stouts, on Thursday announced plans to open an additional location at Sports Factory of the Lehigh Valley, 6616 Ruppsville Road, Upper Macungie Township.
The new location will supplement HiJinx’s original taproom and production facility, a 4,000-square-foot venue that opened in 2014 at the Allentown Economic Development Corporation’s Bridgeworks Enterprise Center, 905 Harrison St., Allentown. The brewery is in Suite 111. Read more here.
A-Treat Birch Beer expands as a fountain soda option at more Lehigh Valley restaurants
A month after announcing a partnership with Lehigh Valley hot dog shop chain Yocco’s, Jaindl Beverage Company – owner of A-Treat soda brand – has announced more local venues carrying A-Treat soda on tap.
In addition to being served at all five Yocco’s locations, A-Treat Birch Beer is now available as a fountain drink at Westside Grill in Upper Macungie Township, Wild Turkey Grill (at The Club at Twin Lakes) in North Whitehall Township and Moselem Springs Golf Club in Richmond Township, Berks County.
Westside Grill, Wild Turkey Grill and Moselem Springs Golf Club are owned by Jaindl Land Development. Read more.
Odds and ends
‘The store of the future’: Dave & Buster’s gears up for grand reopening after remodel
WHITEHALL, Pa. – A popular entertainment facility is ready to level up its services in Lehigh County.
Dave & Buster’s, the entertainment and dining chain that invites guests to “eat, drink, play and watch,” on Friday debuted its reimagined Lehigh Valley location on Friday.
The Whitehall Township location, at 1491 MacArthur Road, opened in October 2020 at a Lehigh Valley Mall outparcel, which was previously home to Friendly’s and Wendy’s restaurants as well as an office building. Full story here.
The Promenade Shops welcomes new tenant, hosting ‘Wonderland on Main’ event
UPPER SAUCON TWP., Pa. – The new year has brought a new tenant to The Promenade Shops at Saucon Valley.
Fulton Bank, offering a broad array of financial products and services in Pennsylvania, New Jersey, Maryland, Delaware and Virginia, on Monday opened its newest Lehigh Valley branch at 3060 Center Valley Parkway, Suite 839, Upper Saucon Township.
The branch offers a variety of services, including deposits, loans, check cashing and safe deposit boxes. Read more here.
Schuylkill County winery earns ‘best white wine’ in Pa. distinction from prominent wine critic
WEST PENN TWP., Pa. – A Schuylkill County winery is making a splash in 2024, with high praise on a well-known wine media platform.
Galen Glen Winery, at 255 Winter Mountain Drive in the Andreas section of West Penn Township, earlier this week received acclaim on JamesSuckling.com, a prominent wine media platform and events company with offices in Hong Kong.
Senior Editor Stuart Pigott labeled the Galen Glen Riesling Lehigh Valley Stone Cellar 2022 as “the best white wine he has ever tasted from Pennsylvania,” according to a Weekly Tasting Report. Read more.
Berks buzz
‘Stay and sip a while’: Folino Estate owners open 2nd Vintner’s Table wine bar and restaurant
WYOMISSING, Pa. – The owners of Folino Estate Winery near Kutztown have opened another tasty venue in Berks County.
Husband and wife Marco and Andrea Folino, who opened Folino Estate in Greenwich Township in 2015, on Tuesday opened a second location of Vintner’s Table – a wine bar and restaurant serving up Folino’s hand-crafted, award-winning wines along with charcuterie and light bites – at 945 Hill Have. Suite 100 in Wyomissing.
“We welcome you to reserve a seat at our table,” an announcement on Vintner’s Table’s Facebook page reads. “Our menu was a labor of love carefully curated to bring you an elevated dining experience full of rustic Italian flavors paired with our award winning wines in a chic and cozy atmosphere that invites you to stay and sip a while.” Full story here.
New golf simulator at Sly Fox has golfers hitting the virtual links
WYOMISSING, Pa. – There’s a new gathering place inside an already familiar spot in Wyomissing that can transport you to dozens of golf courses around the world.
While it’s winter outside, the basement of Sly Fox Brewing, dubbed the Foxskeller, features a whole different vibe.
Golfers are teeing up and taking their swings on brand new golf simulators. Read more here.
Vinyl enthusiasts to descend on Leesport Farmers Market this weekend for ‘Record Riot’
ONTELAUNEE TWP., Pa. – It’s about the search for something special.
“Number one, I’m a collector. All these guys that sell records they all are interested in records, so I’m looking at his records saying ‘What does he have?’ And I saw something I want to buy,” said Record Riot event organizer Stephen Gritzan.
Thumbing through crates of creative work put to vinyl is a physical interaction that seems increasingly rare. Read more.
‘Heavy heart’: Moe’s Southwest Grill location to close after 10 years in Berks County
EXETER TWP., Pa. – An eatery serving up made-to-order burritos, quesadillas, nachos and tacos is ending operations this weekend in Berks County.
A location of Moe’s Southwest Grill, a fast-casual restaurant franchise serving “high quality and fresh southwestern food,” will close on Sunday at 4725 Perkiomen Ave. in Exeter Township.
The restaurant is located in the Exeter Commons, between a Fine Wine & Good Spirits store and L.A. Nails Day Spa. Full story here.
Closing notes
Rite Aid closes Bethlehem store, with another Lehigh Valley location set to shutter on Jan. 15
Two Rite Aid stores in the Lehigh Valley are ceasing operations this month, joining several other regional locations of the pharmacy chain that closed in 2023.
First, a Rite Aid store at 104 E. Third St. on Bethlehem’s South Side shuttered on Wednesday, Jan. 10, according to storefront signage, addressed “Attention: store closure.” Read more here.
American Eagle Outfitters closing Lehigh Valley store
PALMER TWP., Pa. – A well-known clothing retailer is reducing its brick-and-mortar footprint in the Lehigh Valley.
American Eagle Outfitters, a leading global specialty retailer offering high-quality, on-trend clothing, accessories and personal care products, will close its American Eagle store at the Palmer Park Mall in Palmer Township on Jan. 20, a store manager said.
The manager could not comment on the reasons surrounding the upcoming closure. Read more.
Discount variety store closes in Easton area
PALMER TWP., Pa. – A destination for affordable snacks, household items, party supplies and more has closed in Northampton County.
One Dollar Zone!, a discount variety store “where you can find trusted brands and thousands of great quality items for as low as $1.00,” closed a couple of weeks ago at 785 S. 25th St. in Palmer Township.
It’s unclear what led to the store’s closure. A company representative did not return a message seeking more information, and a sign on the door simply reads, “WE ARE CLOSED.” Full story here.
A same-day credit card is also referred to as an instant-use credit card. When credit card providers offer this option, they provide tools that make it possible for you to make charges on the card immediately once you’re approved. This is in contrast to the traditional process, which requires you to wait for around two weeks until the actual credit card arrives via mail. Find out more about same-day credit cards below, including how they work and how you can get one.
How Do Same-Day Credit Cards Work?
When you apply for a credit card from a company that offers this option and you’re approved, the company emails you information that allows you to make charges on your account without having the physical credit card. Each credit card company handles this differently, but some common options include:
Providing you with the credit card number. Some card issuers provide you with the credit card number that will come on your card so you can use it to make purchases the same day you’re approved for the card.
Providing a virtual card number. Other card issuers provide a virtual credit card, which is really just a card number linked to your account that’s not the same number as on your physical card. In some cases, this number is dynamic, which means it’s created uniquely for each purchase to provide greater protection when shopping online.
Offering an app that lets you connect your account with digital payment wallets. In some cases, the card issuer prompts you to download an app and connect it to your account. You can then use the app to make payments or connect your card account to digital wallets and services, such as Google Pay or Apple Wallet. Then, you can use those services to make payments.
Where Can You Shop With a Same-Day Credit Card?
Typically, you’ll have the best luck shopping online with a same-day credit card. You can also easily make purchases via phone by providing the credit card number to the vendor. It’s not as easy to use this type of card at a physical register because you don’t have anything to swipe. However, if you’ve connected your new credit card number to a digital wallet, you can pay with that method at stores and other physical locations that accept Apple Wallet, Google Pay, and other such options.
The Benefits of Same-Day Credit Cards
The most obvious perk of a same-day credit card is that you can use it instantly once you’re approved. This may come in handy if you want to use the credit card to make a necessary and time-sensitive purchase. It can also be handy if you’re applying for the card because of a balance transfer offer. You can get the ball rolling as quickly as possible to transfer debt from a higher-interest card, potentially saving yourself some interest or the need to make a payment on that other card.
Another time it can be helpful to be able to use your card immediately is when you’re approved for a rewards card and there’s a signup bonus. These bonuses typically require spending a certain amount in the first few months after opening the account. If you have to wait for the physical card to arrive, you may lose two weeks or more of that bonus-earning opportunity.
Are There Any Downsides to Instant-Use Credit Cards?
The majority of potential downsides to these types of cards are the same issues you might face with any credit card. You may be dealing with a high interest rate, and if you run up your balance and can’t pay it off each month, you could face a lot of interest expense over time. Missing payments or carrying high balances can also negatively impact your credit.
It’s also important to note that many credit card lenders don’t immediately make your entire credit limit available. For example, if you’re approved for a credit limit of $5,000, you may only have instant access to $2,500 until your physical card arrives.
Which Lenders Offer Same-Day Credit Cards?
Many credit card companies offer same-day credit cards, including American Express, Capital One, and Discover. Retail store credit cards are also often instant-use cards. If you apply at the register at Kohl’s, Best Buy, or other retailers and are accepted, you can usually use your account to make purchases within the store that day.
Should You Seek an Instant-Use Credit Card?
In most cases, whether you get instant access to your credit card account is likely not the most important consideration. After all, this perk becomes obsolete in a few weeks when you receive your physical credit card.
Instead, consider more long-term factors when choosing the right credit card for you, including interest rates, annual fees, customer service options, perks, benefits, and rewards. Start your research for the right credit card for you in our credit card marketplace.
Buying a home is an exciting milestone, but it comes with its fair share of financial responsibilities, including the often-misunderstood closing costs. These costs are a vital part of your home purchase budget and can significantly impact your financial planning as a new homeowner.
Far from being just a trivial detail, closing costs encompass a range of fees and charges that, when understood correctly, can help you make more informed decisions and potentially save money in your home-buying journey.
Here’s everything you need to know about mortgage closing costs to avoid any last-minute surprises.
Who Pays the Closing Costs: Buyer or Seller?
When it comes to closing costs in a home purchase, the question of who pays what is often a topic of negotiation and varies by transaction. Generally, both buyers and sellers have their own set of fees to handle, but the exact distribution can differ.
Your mortgage lender is required to provide you with an estimated breakdown at multiple points in the loan process. The loan estimate outlines the estimated closing costs and lists out all the different fees, as well as who is responsible for paying them.
Buyer’s Responsibility
Typically, the buyer shoulders a significant portion of the closing costs, which can include:
Loan-related fees (such as application and origination fees)
Appraisal and inspection fees
Initial escrow deposit for property taxes and mortgage insurance
Title insurance and search fees
Seller’s Contribution
Sellers commonly pay for:
Real estate agent commissions
Transfer taxes and recording fees
Any homeowner association transfer fees
Room for Negotiation
It’s important to note that these are not hard and fast rules. In many cases, closing costs are a point of negotiation in the sale agreement. For example, in a buyer’s market, a seller might agree to cover a larger portion of the closing costs to attract buyers. Conversely, in a seller’s market, the buyer might take on a larger share to make their offer more appealing.
Case Example
Imagine you’re buying a home priced at $300,000. The closing costs, amounting to approximately 3% of the purchase price, would be around $9,000. As a buyer, you might agree to pay $6,000 of this, covering most of the loan-related fees and escrow deposits. The seller, in turn, might handle the remaining $3,000, covering their portion of fees like the agent’s commission and transfer taxes.
Comprehensive List of Fees Associated with Mortgage Closing Costs
Mortgage closing costs can be broken down into a few different categories: lender fees, real estate fees, and mortgage insurance fees.
Lender Fees
These fees may vary depending on the lender you choose. Here’s a basic rundown of each closing cost to give you an idea of what you can expect.
Application fee: Covers processing your mortgage loan application and obtaining your credit report.
Attorney fee: In some states, an attorney must review the mortgage paperwork; fees vary and can be hourly or a flat rate.
Broker fee: If using a mortgage broker, they typically charge a commission, usually between 1% and 2% of the home’s purchase price.
Origination fee: The origination fee compensates the lender for administrative tasks and is typically around 1% of the loan amount.
Discount points: Paying points upfront can lower your interest rate; each point equals one percent of your loan amount.
Prepaid interest: Covers the interest that accrues between the closing date and the first mortgage payment.
Recording fee: Charged by local governments for recording the mortgage documents; it covers the administrative costs of maintaining public records.
Underwriting fee: Charged for the underwriter’s services in evaluating and preparing your loan; includes costs like due diligence and legal fees.
Real Estate Fees
Real estate fees are related to costs surrounding the property itself. Some are one-time fees, while others are recurring.
Appraisal fee: Necessary to assess the market value of the home. Costs vary, but typically around $500 to $600, payable before the appraisal or at closing.
Property tax: Generally an annual or biannual payment. Most lenders require at least two months’ worth pre-paid into an escrow account at closing.
Homeowners’ insurance policy: An annual premium required for a home loan. The first year’s premium is often paid at closing, with subsequent payments included in your mortgage.
Title search and insurance: Ensures the property is lien-free. Lender’s title insurance protects the lender, while owner’s title insurance safeguards the buyer.
Transfer tax: Imposed by governments when a property is sold, usually a percentage of the sale price.
HOA fees: For properties in a homeowners association, this may include a transfer fee and potentially the first year’s annual assessment.
Mortgage Insurance Fees
When you pay less than 20% of your home purchase price as part of your down payment, you’re usually required to pay mortgage insurance. Your private mortgage insurance (PMI) premium is typically assessed as a monthly fee within your mortgage payment. However, you may also have some costs at closing.
Upfront mortgage insurance fee: Depending on your loan type and lender, you may have to pay an additional application fee for a loan with mortgage insurance. Additionally, some loans require that you pay a one-time fee at the time of closing on top of your annual fee throughout the mortgage.
Government-backed loan fees: If your loan is from the FHA, USDA, or VA, then you may have extra mortgage insurance fees if your down payment is under 20%. FHA loans require an upfront mortgage insurance premium (MIP) of 1.75% and a monthly fee. The VA and USDA don’t charge mortgage insurance, but instead have guarantee fees. VA fees fall between 1.25% and 3.3% while USDA fees are a flat 2%.
Understanding How Closing Costs Are Calculated
That list may seem huge and overwhelming. However, before making an offer on a house, you can estimate your closing costs using some shortcuts. Average closing costs are usually about 2% – 6% of the loan amount.
Let’s look at that in real numbers.
Say you buy a home for $200,000. You can realistically expect your closing costs (not including your down payment) to extend anywhere between $4,000 and $10,000. That’s a pretty big range, so use that as a starting point when you begin to compare loan offers.
But don’t wait until you’ve fallen in love with a house to financially plan for closing costs.
Instead, use an online closing costs calculator early in the process to get a more specific estimate. You will want to use real information like average property taxes in your area and the costs associated with your type of loan.
A good mortgage lender can walk you through the variables, including how different loan types affect your closing costs.
Strategies for Reducing Closing Costs: Negotiation Tactics
Negotiating closing costs can be an effective way to reduce the financial burden of buying a home. While some fees are fixed, others offer room for negotiation. Here are strategies and insights to help you lower these costs:
Understand What Can Be Negotiated
Identify which fees are negotiable. These often include certain lender fees like the origination fee, broker fees, and some third-party charges. Knowing what can be adjusted is the first step in negotiation.
Compare and Shop Around
Before settling with one lender, shop around. Get Good Faith Estimates from multiple lenders and compare their closing costs. This can give you leverage in negotiations, as lenders are often willing to offer competitive pricing to win your business.
Ask the Seller to Contribute
In some real estate markets, it’s common for buyers to ask sellers to cover a portion of the closing costs. This is particularly feasible in buyer’s markets, where sellers are motivated to make the sale.
Look for Lender Credits
Some lenders offer credits in exchange for a slightly higher interest rate on your loan. These credits can be used to offset closing costs. While this increases your long-term interest cost, it can significantly reduce upfront expenses.
Negotiate with Service Providers
For services like home inspections and title searches, you have the option to choose your provider. Shop around and negotiate with these providers for better rates.
Review the Closing Disclosure Form
Before closing, you’ll receive a Closing Disclosure form listing all the fees. Review it carefully and question any fees that seem off or weren’t previously disclosed. Sometimes, errors can be corrected, leading to lower costs.
Time Your Closing
By scheduling your closing towards the end of the month, you can reduce the amount of prepaid interest you’ll need to pay.
Seek Legal or Financial Advice
Consider consulting with a real estate attorney or a financial advisor. They can provide valuable advice on which costs can be cut and how to negotiate effectively.
Options for Financing Your Closing Costs
In some cases, you can roll your closing costs into the mortgage, but you have to meet some basic requirements. First, it depends on your type of loan, since not all loans allow you to do this. Most government-backed loans, like FHA and USDA loans, do offer the possibility to add them into your home loan.
What’s the downside to this idea?
A higher loan amount means a higher monthly mortgage payment and a larger amount of interest paid over the life of your mortgage. Furthermore, your new home needs to appraise for the higher amount you want to finance. Plus, your debt-to-income ratio needs to be able to support that larger payment to qualify for such a loan.
If you’re getting a loan that doesn’t allow for closing costs to be rolled into the mortgage, you can still get around it. However, you must meet those criteria we just talked about.
Simply ask the seller (through your real estate agent) to pay for closing costs in exchange for paying the extra amount as part of the purchase price. Here’s an example.
If your $200,000 offer is accepted, but closing costs are $5,000, ask the seller to contribute $5,000 and change your offer to $205,000. At the end of the day, the seller still walks away with the same amount of money.
Again, this strategy is contingent upon the numbers working for you, your financial situation, and your mortgage application.
Finalizing Payment: Methods to Cover Your Closing Costs
When you finally get to closing day, it’s almost time to relax and move into your new home. But first, don’t forget to set up a way to pay closing costs.
You can ask your lender or settlement company for the preferred payment method. However, in most cases, you can either get a cashier’s check from your bank or set up a wire transfer. There’s usually a minor fee associated with each one. It’s a quick and easy process, but it shouldn’t be forgotten before you get to closing.
Conclusion
Closing costs are a crucial aspect of buying a home. Being well-informed and prepared for these expenses can make a significant difference in your financial planning. Remember, while some fees are fixed, others offer room for negotiation, and shopping around can lead to potential savings.
By factoring in these costs from the start, you can ensure a smoother, more predictable home-buying experience. Buying a house is a major step – financially and personally. Approach it with the right knowledge, and you’ll be set to make this important decision with confidence and peace of mind.
Frequently Asked Questions
What is an escrow account, and how does it relate to closing costs?
An escrow account is a third-party account where funds are held during the process of a transaction, like buying a home. Regarding closing costs, part of these costs often includes initial deposits into an escrow account for future property taxes and homeowners’ insurance. This ensures that there is enough money set aside to cover these recurring expenses.
Can closing costs be included in the mortgage loan?
In some cases, closing costs can be rolled into the mortgage loan. This is more common with certain types of loans, like FHA loans. However, including closing costs in the loan increases the total loan amount and, consequently, your monthly mortgage payments and the total interest paid over the life of the loan.
Are there any tax benefits related to closing costs?
Yes, certain closing costs can have tax benefits. For example, points paid to lower your interest rate may be deductible in the year you buy your home. Always consult a tax professional to understand how your closing costs might affect your taxes.
How can first-time homebuyers prepare for closing costs?
First-time homebuyers should start saving early for closing costs, which typically range from 2% to 6% of the home purchase price. It’s also helpful to research and understand the different types of fees involved in closing costs, and consider attending homebuyer education courses for more detailed information.
What happens if I can’t afford closing costs?
If you find that you can’t afford closing costs, there are a few options. You can negotiate with the seller to pay some or all of the costs, look for lender credits, or explore programs available for first-time buyers or low-income buyers that offer assistance with closing costs.
There are many steps in the homebuying process, not least of which is deciding what type of mortgage to use. Comparing two common mortgage categories — a loan backed by the Federal Housing Administration (FHA) vs a conventional loan — is a smart place to start. This may be especially true for first-time homebuyers, who often find it challenging to save a substantial amount of money for a down payment.
Understanding FHA Loans and Conventional Mortgages
Buying a home is often the largest investment of a lifetime. It’s important for borrowers to understand how the FHA loan vs conventional loan decision could impact their interest rate, loan terms, and minimum down payment. Eligibility requirements also vary between different types of home mortgages. Let’s examine how each loan type works, plus the factors to consider when deciding between an FHA vs a conventional loan.
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What Is an FHA Loan?
An FHA loan is a government-backed loan that’s issued by a lender, such as a bank or credit union, but insured by the Federal Housing Authority (FHA). FHA loans offer low down payment options, as well as flexible income and credit guidelines. For a first-time homebuyer, it may be easier to secure an FHA loan than a conventional mortgage, although it’s always worth exploring both options.
What Is a Conventional Mortgage?
Conventional loans are not insured by the government. They typically have stricter borrower requirements than FHA loans but can cost less over the life of the loan.
Basic Eligibility and Application Process for Each
There are some key differences in eligibility requirements between these two popular mortgage types. Eligibility for FHA and conventional loans is based in part on financial factors like credit score and debt-to-income ratio (DTI). Additionally, FHA loans can only be used for a primary residence and require borrowers to occupy the property within 60 days. Buyers can typically have only one FHA loan at a time, unless they meet specific exceptions.
Applying for either type of home loan involves many of the same steps of the mortgage preapproval process. With either mortgage type, lenders may ask borrowers to submit information on the property they’re purchasing and documentation of income, assets, debts, and employment.
First-time homebuyers can prequalify for a SoFi mortgage loan, with as little as 3% down.
Recommended: The Mortgage Loan Process Explained in 9 Steps
FHA vs. Conventional Loans: Key Distinctions
In a head-to-head FHA vs conventional loan comparison, it’s worth noting some key distinctions. The minimum down payment, credit requirements, insurance, loan limit, and property eligibility varies between each loan type. Here’s how it looks:
Down Payment Requirements and Differences
Pitting an conventional loan vs. an FHA loan will show you how much money you need to put down on a house. (To get a good sense of how much home you are prepared to buy, use a home affordability calculator.) The minimum down payment for FHA loans is 3.5% for borrowers with at least a 580 credit score and 10% for borrowers with credit scores between 500-579. Meanwhile, conventional loans can offer down payments as low as 3% for a fixed-rate loan, or 5% for an adjustable-rate mortgage.
Credit Score Requirements and Impact on Approval
Lenders will look at your credit score with either loan type. Borrowers can secure an FHA loan with a credit score of 500, though as noted above, this requires a down payment of 10% versus just 3.5% with a credit score of 580 or higher. Conventional loans have stricter credit requirements — borrowers will typically need a credit score of at least 620 to qualify.
Mortgage Insurance: PMI vs. MIP
Mortgage insurance premiums (MIPs) are required with an FHA loan. This includes an upfront payment equivalent to 1.75% of the loan and an annual premium that’s spread across monthly mortgage payments. MIP runs for the full loan term or for 11 years if a borrower puts 10% or more down. With a conventional loan, buyers who put less than 20% down will need private mortgage insurance (PMI), which is paid monthly with the mortgage payment.
Loan Limits and Property Eligibility
The amount you can borrow and the condition and intended use of the property are key factors when deciding between an FHA vs. conventional loan. FHA loan limits are set annually by the U.S. Department of Housing and Urban Development (HUD). For 2024, the limit for single-family residences is $498,257 for low-cost areas and $1,149,825 for high-cost areas. The limits increase for two-, three-, and four-unit properties. In 2024, the conventional loan limit for single-family properties is $766,550 in low-cost areas and $1,149,825 in high-cost areas.
Property eligibility also differs by loan type. FHA loans involve stricter appraisals that consider safety and building codes, not just the home’s value. Additionally, conventional loans can be used for a second home while FHA loans are limited to primary residences.
Interest Rate Variations
Interest rates are influenced by several factors, including a borrower’s income, credit score, down payment amount, and the overall state of the economy. Because FHA loans are backed by the government, they generally have more competitive interest rates compared to conventional mortgages.
Benefits and Drawbacks of FHA Loans
Lower Down Payment but with Mortgage Insurance Premium
For borrowers with credit scores of 580 or higher, the ability to put as little as 3.5% down is a key reason for choosing an FHA loan. But FHA borrowers pay MIP, regardless of the down payment amount.
Recommended: Private Mortgage Insurance (PMI) versus Mortgage Insurance Premium (MIP)
Flexible Credit Requirements
In terms of credit score, FHA loans are easier to qualify for than conventional loans. FHA loans require a credit score of 580 to put 3.5% down or 500 to put 10% down.
Property Eligibility and Restrictions
FHA loans are intended for primary residences, so they can’t be used for vacation homes or investment properties. The appraisal process for FHA loans is also more strict than for conventional loans. The FHA appraisal assesses the property value and the home condition to ensure it meets minimum property standards set by HUD. These extensive standards cover design, as well as building materials such as insulation.
Interest Rate Variability
FHA loans usually have lower interest rates since lenders incur less risk with government-backed loans. Interest rates vary by lender, so it’s worth shopping around to compare options, whether you are considering an FHA or a conventional mortgage.
Advantages and Disadvantages of Conventional Mortgages
Opting for a conventional loan vs FHA loan comes with a mix of potential benefits and drawbacks.
Higher Down Payment but No Upfront Mortgage Insurance
Though borrowers could qualify for a conventional loan with a 3% down payment, a higher down payment is more common. The average down payment on a house is 13%, although younger borrowers and first-time buyers often put down less than this. Borrowers can choose to put 20% down on a conventional loan to avoid the cost of private mortgage insurance.
Stricter Credit Score Requirements
The minimum credit score to qualify for a conventional loan is 620, though this can vary by lender.
Property Eligibility and Restrictions
Conventional loans don’t have the same occupancy requirements as FHA Loans. This allows borrowers to purchase a variety of property types, including primary residences, vacation homes, and investment properties.
Interest Rate Stability and Flexibility
There are two types of conventional loans: fixed-rate and adjustable-rate. The former has the same interest rate for the loan term, offering predictability and stability. Adjustable-rate mortgages, on the other hand, tend to have a lower introductory rate for several years before the rate fluctuates based on market conditions. This can provide upfront savings at the onset of the mortgage.
FHA Loan vs. Conventional: Costs Comparison
When comparing FHA loans vs conventional loans, it’s worth considering the monthly payment and overall cost over the life of the loan with each option. For home buyers with a good credit score, a conventional loan may be more attractive. That’s because conventional loan costs are more dependent on your credit score and down payment amount than FHA loan costs. And as a result, your monthly payments and PMI are lower when your credit score is higher. This is a key difference from how FHA loans work.
Upfront and Monthly Costs for Mortgage Insurance
FHA loans require paying MIP for 11 years or the life of the loan depending on the down payment amount. MIP also involves an upfront cost that’s equal to 1.75% of the loan amount. The ongoing cost of MIP is between 0.45% and 1.05% annually, divided across monthly payments.
With a conventional loan, borrowers pay PMI, which typically ranges from 0.5% to 2% of the total loan amount annually. The cost of PMI depends on the borrower’s credit score, loan-to-value (LTV) ratio, and other factors. Borrowers can stop paying PMI once the mortgage balance is at 78% of the home’s original value or current value following an appraisal. For borrowers with stronger credit, PMI with a conventional loan can cost less than MIP with an FHA loan
Interest Rates and Overall Loan Costs
Though FHA loans can offer more competitive rates and be less expensive in the short-term, borrowers with strong credit could save in the long-term with a conventional loan. Once borrowers get out of PMI on a conventional loan, the annual percentage rate (APR) — the annual cost of the loan — may be lower than an FHA loan.
Down Payment Impact on Immediate and Long-Term Finances
If you can afford to put 20% down on a conventional loan, you’ll avoid the upfront and ongoing cost of PMI. Putting more money down could translate to a lower interest rate, providing further savings on monthly payments and long-term finances.
Increasing your down payment on an FHA loan to 10% can reduce the duration of paying MIP to 11 years and potentially lower the interest rate. However, borrowers who can afford a higher down payment may save more with a conventional loan since PMI can be canceled sooner.
FHA vs. Conventional Loans: Eligibility and Qualification Criteria
Borrowers have to meet certain eligibility requirements to qualify for either an FHA or a conventional loan. Generally, FHA loans are easier to qualify for, but they have stricter property eligibility requirements than conventional loans.
Qualifying Credit Scores for FHA and Conventional Loans
To qualify for a conventional loan, borrowers typically need a credit score of 620 or higher. Meanwhile, borrowers could qualify for an FHA loan with a credit score of 500 if they put 10% down. Borrowers with a 580 credit score can put just 3.5% down.
Down Payment Requirements for Both Loan Types
The minimum down payment for a conventional loan is typically 3% if it’s a fixed-rate mortgage or 5% if it’s an adjustable-rate mortgage. However, the down payment requirement can vary based on a borrower’s financial situation, loan amount, and type of property. FHA loans require either a 3.5% or 10% down payment depending on a borrower’s credit score.
Property Eligibility and Loan Limits
FHA loans can only be used for primary residences, while conventional loans apply to a primary residence, vacation home, or investment property. For 2024, FHA loan limits for single-family homes are $498,257 (in low-cost areas of the U.S.) and $1,149,825 (in high-cost areas). Conventional loan limits for single-family properties are $766,550 in low-cost areas and $1,149,825 in high-cost areas. Buyers who want to purchase a property that exceeds these limits will need to consider a jumbo mortgage loan.
FHA Loan vs. Conventional: Which Is Right for You?
There’s no one-size-fits all solution for buying a house. When deciding between FHA vs conventional loans, the right choice depends on your finances, your long-term financial goals, and the property type you wish to purchase.
Factors Influencing the Choice
Your credit score and ability to make a down payment are key considerations when weighing conventional loan vs FHA loan. If you have a lower credit score or a higher debt-to-income (DTI) ratio, an FHA loan could be a better bet for its flexible credit requirements and more competitive interest rate. However, borrowers with strong credit could qualify for a conventional loan with a down payment of just 3%.
Long-Term Financial Considerations
FHA loans can be more affordable upfront due to lower interest rates and down payment requirements. But borrowers will be on the hook for paying mortgage insurance for the full loan term unless they put 10% down or refinance later on.
If you’re able to qualify for a conventional loan and put 20% down on a house, not having to pay private mortgage insurance can save money in the long run. Conventional loans also offer more flexible repayment terms, whereas FHA loans are either 15- or 30-year mortgages.
Flexibility in Property Choices
FHA loans require occupancy within 60 days and the property must be the borrower’s primary residence. These loans also have strict rules for property conditions. For instance, a manufactured home built prior to 1976 is not eligible for an FHA loan. On the other hand, conventional loans can be used for second homes and a greater range of property types.
💡 Quick Tip: If you refinance your mortgage and shorten your loan term, you could save a substantial amount in interest over the lifetime of the loan.
The Takeaway
Deciding between an FHA loan vs a conventional loan depends on your specific financial situation and the property type. An FHA loan could be a better option if you have a higher DTI ratio, lower credit score, or less money to put toward a down payment. Whereas a conventional loan could be a better fit if you have strong credit and can afford a larger down payment.
Looking for an affordable option for a home mortgage loan? SoFi can help: We offer low down payments (as little as 3% – 5%*) with our competitive and flexible home mortgage loans. Plus, applying is extra convenient: It’s online, with access to one-on-one help.
SoFi Mortgages: simple, smart, and so affordable.
FAQ
What are the main differences between FHA and conventional mortgages?
FHA loans are insured by the Federal Housing Administration, whereas the lender assumes the risk for a conventional loan. For the borrower, an FHA mortgage typically has a lower credit-score requirement. It may also allow a lower down payment than some conventional loans.
Can I qualify for both an FHA loan and a conventional mortgage simultaneously?
It is possible to qualify for both an FHA loan and a conventional mortgage simultaneously. Note that lenders will look at your finances closely to ensure you can afford both loans.
How does property type affect the choice between FHA and conventional loans?
FHA loans are restricted to primary residences, while conventional loans can be used for second homes, such as investment properties or vacation homes. FHA loans also have stricter property condition requirements compared to conventional loans.
Photo credit: iStock/FotoDuets
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SoFi Mortgages Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility for more information.
*SoFi requires Private Mortgage Insurance (PMI) for conforming home loans with a loan-to-value (LTV) ratio greater than 80%. As little as 3% down payments are for qualifying first-time homebuyers only. 5% minimum applies to other borrowers. Other loan types may require different fees or insurance (e.g., VA funding fee, FHA Mortgage Insurance Premiums, etc.). Loan requirements may vary depending on your down payment amount, and minimum down payment varies by loan type.
+Lock and Look program: Terms and conditions apply. Applies to conventional purchase loans only. Rate will lock for 91 calendar days at the time of preapproval. An executed purchase contract is required within 60 days of your initial rate lock. If current market pricing improves by 0.25 percentage points or more from the original locked rate, you may request your loan officer to review your loan application to determine if you qualify for a one-time float down. SoFi reserves the right to change or terminate this offer at any time with or without notice to you.
¹FHA loans are subject to unique terms and conditions established by FHA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. FHA loans require an Upfront Mortgage Insurance Premium (UFMIP), which may be financed or paid at closing, in addition to monthly Mortgage Insurance Premiums (MIP). Maximum loan amounts vary by county. The minimum FHA mortgage down payment is 3.5% for those who qualify financially for a primary purchase. SoFi is not affiliated with any government agency.
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Lucky for you, this country features culinary gems from coast to coast. Think you know the best foodie cities in the U.S.? See if your projections match up with our top 10 list.
What makes a great foodie city?
Any serious epicure prioritizes restaurant choice and variety of cuisine on their wish list of where to live. Good news: You no longer have to guess if the city you’re considering calling home is actually one of the best foodie cities in America. We’ve done the math for you.
So what makes these the best foodie cities in the country? Restaurant options, and plenty of them. We looked at no fewer than 104 different cuisines to see how many different choices exist in any given city.
Whether you’re hungry for falafel, pho or fried chicken, the higher the city on the list, the better the chance that you’ll never meet a craving that isn’t satisfied.
But first, a quick housekeeping note. Yes, we realize that there are three No. 9s in our “Top 10″ list below, and 11 total entries. There was an unprecedented three-way tie for the No. 10 spot just to keep us on our toes. So let’s start there, with our trio of lucky number nines:
9 (tied). Portland, OR
How do you feel about street food? If you like a good food truck, it’s time to meet Portland‘s “food carts.” These culinary treasure troves stay put (unlike trucks) and organize in “pods” that make it easy — and practically required — to sample flavors from several different spots in one go.
There are no fewer than 500 food carts here, and the food rivals some of the city’s best restaurants. So what do they serve? Everything … truly. From barbecue to Vietnamese, and pretty much everything in between.
Portland’s not just about man buns and mustaches, though you’re bound to see both in a city that’s proud for being called “weird” — along with naked bike rides, vegan strip clubs and all the quirks you can handle. If that sounds like your speed, expect to spend around $1,747 per month for a one-bedroom apartment.
9 (tied). Seattle, WA
When we talk about the food in Seattle, we obviously need to start with the iconic Pike Place Market. From fishmongers and fresh oysters to specialty food shops and spicy noodles, this admittedly touristy place is ground zero for true gourmands. Like the city at large, the century-old market offers a truly tasty variety of straight-up outstanding cuisine. And yes, also flying fish photo ops.
Eat your way around the city and you could start with steaming bowls of pho, savory Chinese pastries or to-die-for smoked salmon — paired with some of the country’s best coffee.
Ready to set down roots and begin the culinary journey of a lifetime? Expect to pay around $2,214 in rent per month for a one-bedroom. Don’t worry, it’s in your budget. The median income here is a healthy $93,481.
9 (tied). Houston, TX
If you think Houston‘s culinary scene starts at brisket and ends with enchiladas, it’s time to broaden your gastronomic horizons. Yes, barbecue and Tex Mex are big here — this is, after all, one of the best cities for meat lovers — but that’s really just the beginning. From Czech kolaches (savory breakfast pastries) to Cajun crawfish, you’ll find diverse flavors to suit your every mood.
If you’re ready to hunker down in H-town, budget a reasonable $1,241 per month for your housing costs. Sure, it can get pretty steamy in these parts, but fret not. You’ll find plenty of crisp salads and frosty ice cream to cool off with here in the Lone Star State.
8. Washington, DC
If there’s one thing that can unite politicos across party lines, it’s good food. And you’ll find plenty of it here in the nation’s capital.
In the mood for Korean fried chicken? D.C.’s got you covered. Feel like cracking into Chesapeake blue crab? You’re in the right place. Oh, you want Michelin stars? Yep, D.C.’s got those, too. Find diverse flavors for any budget that will happily fill you up for years to come. And don’t sweat your waistline. With an impressive walk and bike score, it’s easy to work it all off.
Ready to find a neighborhood that’s just right for you? You’ll find ample options here when it comes to both housing and restaurants. Plan to spend around $2,406 in monthly rent — and as much or as little as your food budget allows for all the amazing flavors the city has to offer.
7. Las Vegas, NV
From all-you-can-eat buffets and tony steakhouses to celebrity chef outposts, you may think you know all there is to know about eating in Vegas. Think again. This desert city’s food scene goes well beyond the Strip, and you could spend a heck of a lot longer than one crazy weekend exploring all of the different flavors that make up this vibrant city.
People have been flocking to the Vegas suburbs in droves over the past few years. Why? In addition to the fantastic culinary scene, there’s no state income tax — not to mention 300 days of sunshine per year. Sound pretty good? Plan to spend around $1,311 a month for rent.
5 (tied). San Diego, CA
What’s not to love about sunny San Diego? Endless sandy beaches, a vibrant downtown and yes, an amazing food scene. All that sunshine powers a bounty of fresh produce, while the sea serves up uber fresh seafood.
From fish tacos and carne asada to wood-fired pizza, Southeast Asian cuisine and fabulous local wine, prepare to wow your palate. And did we mention that Mexico is just 17 miles away? Expect plenty of spillover from all those south of the border flavors.
This tasty bounty does, however, come at a cost. It’s not exactly cheap to live by the coast in California — but it could be worse (looking at you, SF and L.A.!). You’ll pay around $2,402 per month in rent, but expect to pull in a salary just shy of $80K a year.
5 (tied). Philadelphia, PA
The City of Brotherly Love loves cheesesteaks. And hoagies. And Tastykakes…are you getting hungry? Same, yo. Let’s not forget soft pretzels, crab fries and scrapple. OK, you get the picture. How are you going to get anything done when there’s all that good food to sample? At least you can keep moving — Philadelphia boasts excellent walk and bike scores.
If you don’t mind a little snow (ahem, 22 inches a year), and think you can find a healthy balance between indulging your cravings and not overdoing it, perhaps Philly is for you. The price tag? You’ll pay an above-average $2,152 per month in rent for a one-bedroom.
3 (tied). San Francisco, CA
San Francisco has changed a lot over the last decade, thanks to as a wave of tech companies that have pushed housing prices to the upper limit.
However, one crucial factor has remained constant — and probably even improved: the food scene. From crusty sourdough bread to Dungeness crab, the city offers an embarrassment of culinary riches. It’s also the best city in America for local restaurants.
Let’s address the elephant in the room … it costs a lot to live here. Rent is downright astronomical, with a one-bedroom clocking in around $3,560 per month in rent. But there is some good news! For one, rent prices are dropping. A lot.
And then there’s the job market, and the plump paychecks you can expect to cash in on. How plump? The average salary here in the City by the Bay is $112K. Rest assured, there will be plenty of those six figures left in your budget for some truly amazing meals.
3 (tied). Los Angeles, CA
Tied with its NorCal rival, Los Angeles is also the third-best foodie city in America. The culinary gems here run the gamut, from killer fish tacos and carnitas to pupusas, pork belly ramen and salmon sashimi — and, yes, plenty of top chefs and Michelin stars sprinkled into the mix.
You’ll find global eats from around the world throughout these sprawling environs, and there’s nary a flavor craving you can’t trek down.
There’s a lot more to living in Los Angeles than Hollywood and beaches. Namely, the endless neighborhoods in between, each one boasting its own foodie finds from food trucks to fine dining.
Ready to find the LA neighborhood that’s best suited for you? Budget around $2,970 per month for rent.
2. Chicago, IL
Should we start by mentioning deep dish pizza? How could we not, really? Oh, you want to talk about steak? Italian beef sandwiches? The truth is, that’s just the tip of the iceberg when it comes to Chicago‘s food scene.
There’s a reason Bon Appetit magazine named Chi-town “Best Food City in America” back in 2017. Four years later, it’s only fallen one notch in our top 10. Knowing where to start your culinary adventures is overwhelming, but this is a very good “problem” to have if you tend to let your stomach lead.
If you don’t mind the winters, Chicago’s ready to welcome you with open arms. And for those glorious sunny days, you can’t do much better than the walk and bike scores here — all the better to work off those occasional indulgences. All this flavor is yours if you pay around $2,232 per month in rent.
1. New York, NY
And the best foodie city in the U.S. is … do we even need to say it? No surprise that New York comfortably takes our top slot.
As much as some of the cities in our top five may like to debate it (looking at you, California), no city can beat the Big Apple when it comes to diverse restaurant options that draw foodies from all over the world.
Where else can you find literally whatever you want to eat — at any hour? From classic diner fare to pizza, soft pretzels and five-star cuisine that spans the globe, NYC has it all. In spades.
The city also boasts the highest walk score on our list, just shy of perfect at 99. If there is one drawback, it’s probably the rent prices. A one-bedroom here will cost you around $3,794. But just remember, a one-bedroom in the big city is practically a penthouse when a shoebox studio is an entry-level norm.
The top 50 best food cities in the U.S.
Okay, so there aren’t too many surprises on our top 10 list — we can’t dispute the data. However, we can cast a wider net to highlight the 50 best foodie cities in America (technically 51 because of ties).
And if you’re still searching, take the insider route and check out the country’s best cities for chefs.
The worst foodie cities in America
So, you’re one of those people who have to remind yourself to eat? You don’t care what it tastes like, as long as it fuels your human form? Great. We’ve got a list you may want to take a look at. Funny how fewer restaurant choices seem to correlate with lower rent costs.
Methodology
To find the best foodie cities, we looked through a database of more than 8 million business listings and identified 104 unique dining cuisines. We then looked to see how many dining establishments advertise serving at least one of these cuisines in every city in America with more than 50,000 people according to U.S. Census 2019 population estimates.
We determined the cities with the highest percentage of cuisine coverage to be the best cities for foodies. For instance, if a city has 80 percent coverage, that means diners can find restaurants serving 80 percent of all available cuisines in America.
Business listings may not reflect recent openings and closures.
Rent prices are based on a one-year rolling weighted average from Apartment Guide and Rent.’s multifamily rental property inventory of one-bedroom apartments as of April 2021. Our team uses a weighted average formula that more accurately represents price availability for each individual unit type and reduces the influence of seasonality on rent prices in specific markets.
The rent information included in this article is used for illustrative purposes only. The data contained herein do not constitute financial advice or a pricing guarantee for any apartment.
2023 was a turbulent year for airline elite status. A few major airlines announced significant loyalty program changes — many of which went into effect on Jan. 1, 2024. In most cases, it’s made a more challenging path with higher spending requirements to earn airline elite status.
Some of the most notable and drastic shifts happened to the Delta Air Lines SkyMiles loyalty program. In September, the airline announced it would award Medallion elite status solely based on spending and limit Delta Sky Club access for many customers starting in 2024. The updates were so drastic that Delta walked back some of its most controversial changes, including reducing the spending requirement to earn status.
Other airlines have made minor loyalty program modifications:
Frontier Airlines overhauled its loyalty program to align status earning with dollar spending rather than based on physical miles flown. This kicked in with the new year.
Southwest Airlines made it easier to earn elite status in 2024 by reducing the number of flights needed to earn status.
As of March 2024, Alaska Airlines will simplify partner redemptions based on distance and cabin. According to Alaska Airlines, more than 60% of partner nonstop routes will start at a lower price point (but that implies others will become more expensive).
American Airlines made some changes in 2024, including adding new earning and redemption opportunities. It’ll also soon offer one-day lounge passes for sale.
Which airline program provides the most value?
NerdWallet’s analysis focuses on elite status perks that offer concrete value, such as bonus rewards, seat upgrades and free checked bags. We compared these values against the spending needed to earn each status level. That indicates which elite programs truly offer excellent value per dollar spent.
To generate a single number to compare loyalty programs, we calculate an “effective rewards rate,” which accounts for the value of the benefits you receive relative to the amount you already spent with the airline.
There’s variation across airline loyalty programs, but the average return across all programs is 6.28% in value per dollar spent, meaning you’d get an average of a little over $6 per $100 spent.
Alaska’s rewards program stands out at the top end with its 9.7% rate — the equivalent of earning nearly $10 in value for every $100 spent. Hawaiian Airlines, which in December announced plans to merge with Alaska, isn’t far behind with an 8.89% earning rate.
Frontier and Spirit Airlines trail far behind with paltry 3.92% and 3.45% rewards rates, respectively.
Understand what status is worth
Some programs slap labels like “Gold” and “Platinum” on benefits that hardly sparkle, so be skeptical of chasing titles that sound fancy but ultimately offer mediocre benefits.
A-List Preferred is the highest level of status with Southwest, but its value is low, with no option for premium class seats or airport lounges. You’d have to spend an estimated $14,400 to earn A-List Preferred (though you could get it for less if you fly a lot of low-cost flight segments), yet NerdWallet values its benefits at less than $1,400. Don’t try too hard to chase Southwest status.
Meanwhile, the top tiers at Alaska, Hawaiian, United Airlines and American Airlines mean something. With Alaska MVP Gold 100K, you’ll receive nearly $9,000 in value with the first-class upgrades, free checked bags and lounge passes. Earning it requires an estimated $12,000 in Alaska spending, translating to a roughly 73% rewards rate.
Earning United Premier 1K status is neither cheap nor easy, as you’ll have to spend an estimated $30,000 with United for the honor. But NerdWallet values the benefits (which include instant premium cabin upgrades and priority check-in) at nearly $19,000, offering a 64% return.
Look for promotions
You can sometimes find limited-time promotions with easier routes to earning elite status. For example, United MileagePlus is currently running a Premier Status Match Challenge through the end of 2024.
Leverage airline credit cards
If you’re chasing elite status for benefits like free checked bags, Wi-Fi or early boarding, many airline credit cards offer those perks without awarding you elite status.
How to approach airline elite status in 2024
As more airlines tie elite status to spending, it can feel like the value of your loyalty has taken a nosedive, especially if you previously earned status through low-cost flights. On the other hand, some high rollers are rejoicing. After all, a higher threshold to earn status only makes it more valuable for folks who have it through reduced competition for seat upgrades or fewer people overcrowding airport lounges.
However, having elite status is only part of the reason to pick which airline to fly. Sometimes elite status can be more limiting than freeing, as you might be more inclined to fly at an inconvenient time or book a more expensive flight just to flex your benefits.
By leveraging credit card bonuses, seeking targeted promotions and being open-minded to the best flight rather than one operated by the brand you have status with, you can maximize the value of your travel.
Not to mention, airfares have dropped over the past year despite inflation affecting most other sectors. Some experts expect airfares to continue dropping. According to American Express Global Business Travel’s 2024 Air Monitor report, economy class flights from North America to Europe are expected to drop by 3.5% versus their 2023 prices, while those to Asia are expected to drop by 7.5%.
For price-conscious consumers, that might be a better trade anyway.
How to maximize your rewards
You want a travel credit card that prioritizes what’s important to you. Here are our picks for the best travel credit cards of 2024, including those best for: