For seniors who have retired, taking on additional debt that requires a monthly payment while being on a fixed income could have ramifications on quality of retirement, and it should be considered in concert with all the facts about how it will impact a senior’s financial situation.
This is according to experts who spoke to personal finance website Bankrate about the concept of taking on a new mortgage in retirement. Certain things beyond current cash flow should also be taken into consideration, including data that suggests seniors face higher rejection rates on traditional mortgage applications, as well as alternative products such as reverse mortgages.
Age information is collected at the time of origination, but only for Home Mortgage Disclosure Act (HMDA) purposes. Seniors, even those of advanced age, are legally required to face the same qualification requirements as any other mortgage applicants.
“I once did a 30-year mortgage for a 97-year-old woman,” Michael Becker, branch manager at Sierra Pacific Mortgage in Lutherville, Maryland, told Bankrate. “She was lucid, understood what she was doing and just wanted to help out a family member [by taking] some cash out of her home, and had the income to qualify and the equity in the home — she owned it free and clear. So she was approved.”
An analyst for Bankrate describes some challenges that could be unique to older mortgage borrowers if they take on a new, debt-based financial instrument.
“Even if one owns a property with no further mortgage payments due, property taxes and upkeep will be a consideration,” Bankrate senior economic analyst Mark Hamrick said. “As with people of all ages, having a budget, limiting expenses and accurately accounting for income expectations are key.”
Using retirement savings to pay down mortgage debt could have a notable impact on a senior’s retirement resources, Bankrate noted, but there are options specifically designed for seniors seeking mortgage financing.
These include a reverse mortgage, which also requires the borrower to pay property taxes and insurance, but which — based on the home’s value, interest rates and other factors — offers payment options to the borrower instead of the other way around. Reverse mortgage industry advocates say that this helps insulate retirement resources from traditional mortgage payments.
Unlike a Home Equity Conversion Mortgage (HECM), forward mortgages were not designed with seniors in mind, according to Martin Andelman, reverse mortgage trainer and speaker with HighTechLending in Orange, California.
“It’s also worth mentioning that [in terms of] 30-year mortgages, I promise you, no one ever sat around and talked about 30-year mortgages thinking they’d be perfect for 70- and 80-year-olds,” Andelman said in a 2019 episode of The RMD Podcast.
“30-year mortgages were never meant to be for them. And now, I bump into people all the time who could be 72 years old, just refinanced two years ago, and now have only 28 years to go. What could go wrong?”
Welcome to Summerlin, the epitome of tranquility and luxury living in the heart of Las Vegas.
With its meticulously designed neighborhoods and vast array of exclusive amenities, Summerlin truly embodies the perfect blend of opulence and serenity.
From exquisite gated communities to world-class golf courses and award-winning schools, every aspect of life in Summerlin is centered around providing the utmost comfort and convenience.
And people have started to take notice.
Summerlin has seen an influx of new residents in the past few years, fast becoming Nevada’s top-selling community.
In the first half of 2023 alone, an impressive total of 544 new homes were sold in the master-planned community, pushing it to rank #5 nationally in new home sales in a recent midyear report by national real estate consultant RCLCO.
Celebrities too have been flocking to the area, with A-listers like Mark Wahlberg ditching the glamorous L.A. lifestyle and buying homes in Summerlin, Nevada.
To get a better feel of the local real estate market, we’ve reached out to industry expert Cami Lincowski, a prominent luxury Las Vegas real estate agent and former star of HGTV’s Say Yes to the Nest.
Talking about the appeal of the area of its rise in popularity, Cami tells us that “Summerlin is not only thriving, but when you throw in the latest and greatest shopping & high-rated restaurants the valley has to offer; there’s no denying that this area ranks amongst the top cities to call home.”
So let’s take a closer look at what makes this Las Vegas Valley community such a great place to live.
The luxury lifestyle in Summerlin
Summerlin is synonymous with luxury.
This master-planned community boasts some of the most prestigious homes in Las Vegas, offering residents an unparalleled level of elegance and sophistication. From sprawling mansions to stylish townhouses, Summerlin has something to suit every taste and preference.
The meticulously designed neighborhoods of Summerlin showcase architectural excellence and attention to detail.
Gated communities like The Ridges, Tournament Hills, The Lakes, and Red Rock Country Club provide residents with a sense of exclusivity and security. Impeccably landscaped streets and manicured lawns add to the overall aesthetic appeal, creating a sense of grandeur at every turn.
More recently, The Summit Club has emerged as the pinnacle of luxury living in Summerlin. The 555-acre resort community south of The Ridges (and only 9 miles away from the Las Vegas strip) is the only fully private residential golf and lifestyle club community in all of Las Vegas.
In addition to the stunning homes, Summerlin offers a wealth of amenities that cater to the luxury lifestyle.
Residents have access to world-class golf courses, private country clubs, and state-of-the-art fitness centers. The community also boasts a wide range of recreational facilities, including tennis courts, swimming pools, and parks, ensuring that there is always something to do for those seeking an active lifestyle.
The real estate market in Summerlin
The real estate market in Summerlin is thriving, thanks to its reputation as one of the most desirable places to live in Las Vegas. But you do have to have deep pockets – or an outstanding credit score – to afford to buy here.
The demand for homes in Summerlin has been steadily increasing over the years, leading to a rise in property values. The community’s prime location, coupled with its exceptional amenities and quality of life, make it an attractive choice for both homebuyers and investors.
But despite being a top luxury home destination, Summerlin’s house prices can accommodate a wide range of budgets — and are considerably less prohibitive compared to those found in other top luxury markets on the West or East Coasts.
“Anyone can call Summerlin home,” luxury agent Cami Lincowski tells us. “With price ranges starting at $400k & tipping the scale at $15m+, this city is not just made of city lights, but all walks of life.”
The community offers a wide range of housing options, from single-family homes to luxury condominiums and townhouses.
Whether you are looking to buy a home or invest in real estate, Summerlin offers a wealth of opportunities. The community’s diverse housing options cater to a range of budgets and lifestyles, ensuring that there is something for everyone.
Celebrities that call it home
With the Mansion Tax adding fuel to the California exodus, many of the Golden State’s affluent residents started flocking to new luxury markets — with A-listers and famous individuals choosing to make Las Vegas their new primary residence.
Naturally, Summerlin emerged as a top choice.
Celebrities to have called Summerlin home include actor Mark Wahlberg (who sold his sprawling $55 million LA mansion to move here), Grammy Award-winning singer Celine Dion, who sold her freshly-built Summit Club house for a record $30 million, and several Golden Knights players.
NHL pro Max Pacioretty played only four seasons with the Vegas Golden Knights (2018-2022) but went all in when it came to making himself at home in Sin City. The Carolina Hurricanes left winger owned a 10,000+ sq. ft. home in The Ridges community, which he sold for top dollar last year.
Pacioretty’s spectacular estate “netted” a cool $11 million, a record for the high-end The Ridges community.
Rob Roy, the CEO, founder, and chairman of Switch Communications Group, also paid $33 million for 5 acres to build a luxury estate in the same Summerlin resort community.
And while Wahlberg recently sold one of his Summerlin homes for $16.6 million one year after buying it, he made it clear he loves living here and has no plans of leaving the Las Vegas community. He’s just waiting for his other mansion to be completed.
Top neighborhoods in Summerlin
Summerlin is home to a number of top-notch neighborhoods, each with its own unique charm and character. Here are some of the most sought-after areas in the community:
#1 The Ridges
Located at the base of the Red Rock Canyon, The Ridges is an exclusive gated community known for its luxurious homes and breathtaking views. With its private golf course and world-class amenities, it is one of the most coveted neighborhoods in Summerlin.
#2 Tournament Hills
Situated around the TPC at Summerlin Golf Course, Tournament Hills offers residents the opportunity to live near one of the best golf courses in Las Vegas. The neighborhood features a mix of custom-built homes and luxury estates, providing a premium living experience.
#3 The Gardens
Nestled among lush green landscapes and scenic walking trails, The Gardens is a peaceful and picturesque neighborhood in Summerlin. With its tree-lined streets and well-maintained parks, it offers residents a serene and idyllic setting.
Tranquility and natural beauty
One of the most remarkable aspects of Summerlin is its breathtaking natural beauty.
Nestled against the majestic Red Rock Canyon, the community offers stunning views of the surrounding desert landscape. The vibrant hues of red and orange against the clear blue sky create a picturesque backdrop that is hard to find elsewhere in Las Vegas.
Summerlin is a nature lover’s paradise, with over 150 parks and more than 150 miles of trails to explore. Whether you enjoy hiking, biking, or simply taking a leisurely stroll, there is a trail for every skill level. The community is also home to numerous lakes and ponds, perfect for fishing or enjoying a peaceful picnic by the water.
For those seeking a more tranquil experience, Summerlin offers an abundance of peaceful retreats. The community’s botanical gardens and meditation centers provide a serene environment for relaxation and introspection. Escape the hustle and bustle of city life and immerse yourself in the tranquility that this community has to offer.
Amenities and recreational activities
Summerlin is not just a place to live; it is a lifestyle.
The community offers an impressive array of amenities and recreational activities that cater to residents of all ages. From world-class golf courses to community centers and sports facilities, there is something for everyone.
Golf enthusiasts will be delighted by the exceptional courses that Summerlin has to offer.
The TPC at Summerlin is a championship golf course designed by renowned architect Bobby Weed. With its challenging fairways and breathtaking views, it is a favorite among golfers of all skill levels. The community is also home to the Red Rock Country Club, which features two Arnold Palmer-designed courses and a host of other amenities.
In addition to golf, Summerlin offers a wide range of recreational activities. The community’s numerous parks and trails provide ample opportunities for outdoor enthusiasts to stay active.
Tennis courts, basketball courts, and soccer fields are available for those who enjoy team sports. And for those who prefer indoor activities, the community’s state-of-the-art fitness centers and swimming pools provide plenty of options.
Schools and education options
Summerlin is not only known for its luxury homes and amenities; it is also home to some of the best schools in Las Vegas. The community offers a wide range of educational options, from top-rated public schools to prestigious private institutions.
The Clark County School District serves the majority of students in Summerlin, offering a comprehensive curriculum and a strong emphasis on academic excellence. The district’s schools consistently rank among the best in the state, providing students with a quality education that prepares them for future success.
For those seeking a private education, Summerlin is home to several esteemed institutions.
The Alexander Dawson School is a renowned independent school that offers a challenging and well-rounded education. The Meadows School, another prestigious private institution, is known for its rigorous academic program and strong college preparatory curriculum.
When it comes to shopping and dining, Summerlin has it all. The community is home to The Shops at Summerlin, a premier shopping destination that offers a wide range of retail and dining options.
From high-end fashion boutiques to popular chain stores, there is something for every shopper.
Food enthusiasts will also be delighted by the diverse culinary scene in Summerlin. The community boasts a wide range of restaurants, offering everything from casual dining to fine dining experiences. Whether you are craving sushi, steak, or Italian cuisine, you will find it all in Summerlin.
Summerlin’s proximity to the Las Vegas Strip
One of the unique aspects of living in Summerlin is its close proximity to the Las Vegas Strip. While the community offers a peaceful and serene environment, the bustling energy of the Strip is just a short drive away.
Residents can easily access all the excitement that Las Vegas has to offer, from world-class entertainment and nightlife to renowned restaurants and shopping.
The convenience of being near the Strip allows residents of Summerlin to enjoy the best of both worlds. They can retreat to the tranquility of their luxurious homes after a night out on the town, providing the perfect balance between opulence and excitement.
Why Summerlin is the ideal place to live in Las Vegas
To sum things up, Summerlin is a community that embodies the perfect blend of luxury and tranquility. Its meticulously designed neighborhoods, breathtaking natural beauty, and array of exclusive amenities make it an ideal place to live in Las Vegas.
Whether you are seeking a luxurious retreat or a place to call home, Summerlin offers a lifestyle unlike any other. From world-class golf courses to award-winning schools and gourmet dining, every aspect of life in Summerlin is centered around providing the utmost comfort and convenience.
Escape the hustle and bustle of the Strip and immerse yourself in the beauty and serenity of Summerlin.
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Welcome to the rhythm-infused city of Miami, a place where the waves whisper stories of history and the skyline glistens with the promise of tomorrow.
But what is Miami known for? From the pulsating beats of its nightlife to the sun-kissed shores of its sandy beaches, Miami is a city of contrasts and surprises. In this article, we’ll dive headfirst into the crown jewel of the Florida coast, unraveling the layers that make it such a special place to call home.
History
The story of Miami begins long before its official founding in 1896. Originally inhabited by the Tequesta Native Americans for thousands of years, the area saw its first European contact in the 16th century. However, it wasn’t until the late 19th century that Miami truly began to flourish. Julia Tuttle, often hailed as the “Mother of Miami,” played a pivotal role in this transformation. Her vision and persuasion led railroad tycoon Henry Flagler to extend his Florida East Coast Railway to the region, effectively birthing modern Miami.
As the 20th century progressed, Miami continued to evolve, reflecting the upbeat spirit and diverse influences that came to define it. The city quickly became a haven for those seeking respite from colder climates, attracting a surge of retirees and tourists alike. This influx, combined with its proximity to the Caribbean and Latin America, transformed Miami into a melting pot of cultures, each adding its unique flavor to the city’s overall identity.
The mid-20th century brought a significant Cuban influence, especially following Fidel Castro’s rise to power in 1959, which led to an inundation of Cuban immigrants. This wave significantly shaped Miami’s social, economic and political landscape, infusing it with a distinct Latin American character. Today, Miami stands as a dazzling metropolis, known for its balmy weather, stunning beaches and international finance prowess.
Jobs
At the heart of Miami’s economy is tourism, a sector that thrives thanks to the city’s beaches, year-round warm weather and renowned hospitality. This industry not only fuels a significant portion of job opportunities in the hotel, restaurant and entertainment industries but also maintains sustained growth in related fields like retail and transportation.
Another major player in Miami’s job market is international trade, thanks to the city’s strategic location as a gateway between the United States, Latin America and the Caribbean. The Port of Miami, known as the “Cruise Capital of the World,” and Miami International Airport, one of the nation’s busiest airports for international freight, are pivotal in supporting jobs in logistics, shipping and trade. Beyond that, the city’s tech scene is beginning to make waves by attracting startups and established tech firms alike.
Five of the largest employers in Miami
Finance and banking are also significant contributors to the job market, with Miami being recognized as an international banking hub. Real estate and construction have historically played a central role in Miami’s economy, reflecting the city’s continuous growth and development.
Education and government are the final two pillars providing stable job options. While the city’s job market is dynamic, it’s key to note that competition can be fierce and some fluency in Spanish is often a requirement.
Entertainment
They say that NYC is the city that never sleeps, but Miami locals may have something to say about that. From the world-renowned clubs in South Beach, where world-famous DJs do their thing nightly, to the more laid-back rooftop bars in Wynwood, there’s something for every taste. Annual events like Ultra Music Festival and Miami Music Week put the city on the global map for electronic dance music, drawing crowds from all corners of the world.
Beyond the night scene, Miami is also full of talented artists. The Adrienne Arsht Center for the Performing Arts and the New World Symphony offer high-caliber ballet, opera, symphony and theater performances, making them must-visit destinations for those seeking a sophisticated night out.
Five of the best live entertainment venues in Miami
For those looking to delve into experiences unique to Miami, the city’s many neighborhoods offer a world of exploration. Little Havana, with its Cuban flair, entices with authentic cuisine, live music and the famous Calle Ocho.
Miami’s entertainment is not just limited to adults; it’s a family-friendly destination too. Attractions like the Miami Seaquarium, Zoo Miami and the Phillip and Patricia Frost Museum of Science provide educational and exciting experiences for all ages. The city’s proximity to the Everglades also offers a unique opportunity for outdoorsy types to explore one of the nation’s most unique ecosystems.
Outside
Miami’s beaches are a perfect starting point, offering more than just sunbathing and swimming. South Beach, with its clear blue waters and lively atmosphere, is ideal for a day under the sun and a night on the town, while the quieter Crandon Park Beach is perfect for families seeking a more relaxed experience.
For those in the market for a closer encounter with marine life, snorkeling and scuba diving in the crystal-clear waters of Biscayne National Park provide an unforgettable experience. Anglers will find Miami to be a dream destination, with deep-sea fishing trips readily available, offering the chance to catch a variety of species.
Five great parks in and around Miami
Apart from aquatic adventures, Miami’s natural landscape offers a wealth of outdoor activities. Everglades National Park is a short drive from the city and a must-visit for anyone interested in wildlife and nature. This unique ecosystem, one of the largest in the country, can be explored through guided airboat tours, which offer a chance to see alligators, manatees and more. Fairchild Tropical Botanic Garden and the Vizcaya Museum and Gardens are lush landscapes and serene environments, perfect for a leisurely day surrounded by nature’s beauty.
Food
At the forefront of Miami’s food scene are the city’s Latin American and Caribbean influences. For a taste of Cuba, Little Havana is the go-to destination, where one can savor authentic Cuban sandwiches, pastelitos and strong, sweet Cuban coffee.
The neighborhood thrums with life, especially during their lively festivals, where food plays a central role. Similarly, neighborhoods, like Little Haiti, offer a taste of their countries, with unique dishes and ingredients. The city also plays host to a few food festivals throughout the year, including the famous South Beach Wine & Food Festival.
Five of the best restaurants in Miami
Miami is home to several high-end restaurants led by celebrity chefs, offering innovative and exquisite culinary creations. These establishments often feature fusion cuisine, blending traditional flavors with modern techniques to create something truly unique.
On the other end of the spectrum, Miami’s street food and food truck scene is a more casual, yet equally delicious, dining experience. Here, you’ll find everything from gourmet burgers to artisanal ice cream. Additionally, farmers’ markets like Coconut Grove Organic Market present a wonderful opportunity to explore locally sourced produce and artisanal products.
Make Miami your home
As our journey through the city of Miami comes to a close, it’s clear that this sun-kissed paradise is much more than just a pretty face. Miami is a city where history dances with modernity, where diverse flavors create a culinary symphony and where every street corner has a story to tell.
As the South Beach sun sets, painting the sky with hues of orange and pink, we leave you with a sense of wonder and an invitation to explore this amazing city, where every moment is a new adventure. Welcome to Miami, where your life is just one extraordinary day after another.
Republic Day, observed on January 26, is commemorated with parades and celebrations honouring India’s diverse cultural heritage. It is well worth seeing the magnificent Republic Day parade, which is customarily staged on the main Rajpath avenue and includes the Army, Navy, and Armed Forces in their full splendour. The parade’s major attractions include traditional dance troupes and floats from every state, along with a sky display by helicopters. As we approach the joyous occasion of Republic Day, let’s channel our love for the nation into the very fabric of our homes. Elevate your living space with a fusion of cultural aesthetics, vibrant furniture, and cosy textiles. (Also read: Republic Day 2024: 10 creative and easy-to-make drawing ideas for kids to celebrate the nation’s pride )
Creative home decor ideas for Republic Day
1. Tricolour cushions
On Republic Day, everything takes on the colours of the Indian national flag. So why leave your house? While it’s rare to redecorate the whole room every year, you can show your love for the national colours by bringing out cushions in white, green and saffron. Use white cushions, green plants and saffron bed linen in your master bedroom to create a festive and patriotic atmosphere.
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2. Floral decor
Who doesn’t love flowers? With their enchanting scent and vibrant colours, they can instantly create a festive mood. For a tricolour look, use marigolds, jasmine and green foliage and finish the arrangement with a flag. Whether you make a floral rangoli or create a tricolour flag with flowers, your home is sure to be ready for R-Day.
3. Paper flower decorations
If you enjoy crafts, try making paper roses with coloured crepe paper, glue and wire. Use these paper flowers to decorate your home. You can make a string of flowers to hang in your window, or use them as a bouquet in a vase. Cut out flower shapes from coloured cards using a template. Use your imagination and let your inner child experiment. You can also make cut-outs in the shape of hearts, stars or tiny dolls. Use these beautiful shapes to make garlands, posters and banners.
4. Tri-colour balloons
Having a Republic Day party at your house or place of business? Make orange, white, and green helium balloons the focal point of your arrangement! Create a cheerful environment by arranging saffron, white and green balloons to turn your room into a visual symphony. Decorate corners, walls and ceilings with balloon clusters and garlands that symbolise the Indian tricolour. Use patriotic embellishments and accents reminiscent of flags to reinforce the theme.
5. LED lights
Decorate your space with tricolour LED string lights to capture the essence of the Indian flag and create a vibrant aura of saffron, white and green. Use these energy-efficient lights to accent windows, doors and other focal points to create a sense of patriotism. Add a touch of style with LED light patterns inspired by national emblems or the Ashoka Chakra. Let the LED lights flash brightly at sunset to represent India’s unity, diversity and vibrant spirit on this memorable day.
From the New York City region to Greater Philadelphia, the gorgeous Skylands to the Pine Barrens to the real Jersey Shore, it’s a vast, diverse and growing state. But where are the best places to live in New Jersey? Thankfully, they are all over the state.
Many of these livable towns are understandably clustered in the flourishing, gentrifying North Jersey cities that act as Manhattan bedroom communities. But from the shore to the Ivy League, there are many amazing places to call home all over the Garden State.
Population: 71,245
Average age: N/A
Median household income: $105,022
Average commute time: 28.1 minutes
Walk score: 48
Studio average rent: $1,423
One-bedroom average rent: $1,678
Two-bedroom average rent: $2,127
Just five miles from the Benjamin Franklin Bridge into Philadelphia is the South Jersey township of Cherry Hill. It is a bedroom community for many workers in Philadelphia, as well as places like Trenton and Princeton.
With an average commute time of just under 28 minutes, it’s a convenient central location. Both New Jersey Transit and PATCO have rail station stops in Cherry Hill. Cherry Hill Station serves the Atlantic City Line and Woodcrest Station sits on the Lindenwold Line. For auto commuters, the New Jersey Turnpike and Interstate 295 also pass through the eastern section of the city.
But to many people in the area, the primary destination in the city is the 160-store Cherry Hill Mall. Dating back 60 years, the super-regional indoor shopping center was the first in the Eastern U.S. And Chick’s Deli has been a destination for cheesesteak and hoagie lovers from all over Philadelphia for decades.
Photo source: Rent. / 207 Freeway Dr E
Population: 64,876
Average age: 41.3
Median household income: $48,072
Average commute time: 42.7 minutes
Walk score: 73
Studio average rent: $1,334
One-bedroom average rent: $1,513
Two-bedroom average rent: $2,298
East Orange is the largest of New Jersey’s “The Oranges.” It sits on the western border of Newark, and its central location in northeastern Jersey makes it as convenient to Midtown Manhattan as it is to the rural highlands and even the Meadowlands. It’s also one of Jersey’s most affordable cities with one-bedrooms leasing for an average of $1,086 monthly and two-bedrooms for just $1,373.
The family-friendly commuter community offers five city parks, a number of playgrounds, the multipurpose Paul Robeson Stadium and the interactive Jersey Explorer Children’s Museum.
As part of one of the state’s Urban Enterprise Zones, residents pay sales taxes half that of the rest of Jersey. And the city is also home to East Orange General Hospital, as well as the East Orange Veterans Affairs Medical Center.
East Orange is one of the nation’s most established African-American communities. Nearly 90 percent of residents identify as Black, one of the highest rates in the nation. Within that demographic is a significant representation of those with Caribbean ancestry. In fact, Orange’s 2.9 percent population of Guyanese-Americans is the largest percentage in the country.
Population: 129,361
Average age: 38.6
Median household income: $48,407
Average commute time: 33.1 minutes
Walk score: 77
Studio average rent: $844
One-bedroom average rent: $1,086
Two-bedroom average rent: $1,373
Situated at the south end of Newark Bay just across from Bayonne is the city of Elizabeth. New Jersey’s fourth-largest city, Elizabeth is also one of America’s greenest. Based on its infrastructure including electricity, public transportation usage, recycling, certified buildings, public preserves, how residents view climate initiatives and more, it’s one of the top green cities in the nation.
With its relatively easy access to the Atlantic Ocean and channels to the Great Lakes, Elizabeth has long been one of the northeast’s shipping hubs. The Port Newark–Elizabeth Marine Terminal is one of the busiest ports in the entire world. And just to its north, Newark International Airport (the 12th busiest in the nation) actually lies half within Elizabeth. And right in the middle is The Mills at Jersey Gardens, the New York City area’s largest outlet mall.
But what sets Elizabeth out from the crowd is its affordable rents. With an average studio renting for $844 a month, a one-bedroom for $1,086 and a two for $1,373, you would be hard-pressed to find cheaper rent prices anywhere else in the tri-state region.
Photo source: Rent. / 210 Main Street
Population: 44,719
Average age: 43.3
Median household income: $70,090
Average commute time: 39.7 minutes
Walk score: 72
Studio average rent: $1,726
One-bedroom average rent: $1,903
Two-bedroom average rent: $2,365
A quarter-century ago, Richard Pryor’s “Brewster’s Millions” painted Hackensack as, well, kind of a sad sack city. Even Billy Joel asked, “Who needs a house out in Hackensack?” But both entertainers would be pleasantly surprised to find Hackensack the diverse, exciting, in-demand city it is today.
Just a half-hour northwest of Times Square, Hackensack is a vibrant suburb and a gateway to the natural lands of northwest Jersey.
It’s a walkable urban setting filled with parks and recreation and home to Hackensack University Medical Center and half the campus of Fairleigh Dickinson University. Its quaint downtown along Main Street is just a block from the river. And tucked away in its extreme northeastern corner are The Shops at Riverside, an upscale shopping center along the river at Hackensack River County Park.
One of Hackensack’s strengths is its diversity. Almost 40 percent of its residents are immigrants, and nearly half speak a language other than English at home. Upwards of 47 percent of Hackensackians are white, while nearly a quarter are Black and over a third are Hispanic.
Population: 54,144
Average age: 37.8
Median household income: $147,620
Average commute time: 48.8 minutes
Walk score: 96
Studio average rent: $2,675
One-bedroom average rent: $3,252
Two-bedroom average rent: $4,004
There are fewer rags to riches stories more robust in New Jersey than Hoboken. Just ask the Cake Boss. Once a smoggy, inaccessible industrial port city, today’s Hoboken is one of the most desirable and fashionable addresses in the Garden State.
Hoboken’s redeveloped riverfront sits directly across the Hudson from Chelsea and Greenwich Village. The city is rife with century-old brownstone apartments and houses, beloved by upscale residents and transplants from over the river in Manhattan. The homes are interspersed with gleaming apartment high-rises and reclaimed tenement towers with stellar views.
The city has quickly become home to young professionals, Wall Street commuters and artists and musicians. This has driven rent prices through the roof, to some of the highest in the state. An average studio runs $2,675 a month up to $5,741 for a three-bedroom.
With a walk score of 96, trendy cafes, retail shopping, gourmet restaurants, friendly parks and exciting nightlife are just out the front door for many in the city.
But while Hoboken has enough to occupy any lifestyle, many residents work and play across the river in New York. Hoboken Terminal is a major hub for New Jersey Transit, PATH and the MTA, and 56% of ‘Bokens use public transportation, the highest rate in America.
Population: 265,871
Average age: 39.4
Median household income: $70,752
Average commute time: 46.5 minutes
Walk score: 89
Studio average rent: $2,354
One-bedroom average rent: $2,864
Two-bedroom average rent: $3,980
Cradling Hoboken to its south and west is another Hudson River success story in Jersey City.
Covering most of the land on the upper Bergen Neck peninsula, Jersey City is home to Liberty State Park, the gateway to the Statue of Liberty and Ellis Island. It sits just across from New York City, facing Lower Manhattan and the Financial District, Battery Park and northwestern Brooklyn.
Jersey City’s downtown is along its waterfront. North of Liberty Park, downtown is a collection of bars and eateries, retail shopping, residential high rises and corporate towers. It’s also the heart of the Jersey City banking and finance industry. Exchange Place, also known as “Wall Street West,” is one of the nation’s largest finance hubs.
Outside of downtown, Jersey City has a number of shopping districts. Journal Square and Newport Mall are key retail cores, along with the Danforth, Central and West Side Avenue corridors.
Over 40 percent of Jersey City residents ride public transit, the second-highest percentage of any large city in the U.S. The city offers four PATH stations and 13 Hudson–Bergen Light Rail stations as well as a number of ferries into New York.
Population: 18,795
Average age: 42.1
Median household income: $96,545
Average commute time: 29.9 minutes
Walk score: 71
Studio average rent: $2,656
One-bedroom average rent: $2,613
Two-bedroom average rent: $3,333
If Morristown were good enough for George Washington, it’s surely good enough for you. The Morristown National Historical Park, spread throughout the borough, traces the history of where Washington and his troops encamped several times during the Revolutionary War.
Aside from its history and the tourists it attracts, Morristown is a residential exurban town close enough to Manhattan for a reasonable commute but far enough away to feel secluded from city life.
The city offers a minimal half-hour average commute time. It is convenient to nearly all of Central and North Jersey, and a workable 70-minute train ride to Manhattan. Morristown Station serves the New Jersey Transit Midtown Direct train into Penn Station.
With a median household income of around $100,000, it’s a pretty exclusive locale. One- and two-bedroom apartments in Morristown lease for $2,613 and $3,333 a month, respectively. But limited opportunity creates demand as the town has a population of under 19,000.
Population: 282,352
Average age: 38.6
Median household income: $35,199
Average commute time: 44.2 minutes
Walk score: 78
Studio average rent: $1,691
One-bedroom average rent: $2,139
Two-bedroom average rent: $2,694
For those that enjoy the bustle of city life over suburban isolation, Newark is the perfect locale.
With a population of over 282,000, Newark is the largest city in New Jersey. It’s also one of the nation’s most convenient. It’s home to Newark-Liberty Airport and two major commuter train stations. Newark Broad Street offers access to four New Jersey Transit lines and Newark Light Rail, and Newark Penn Station is a stop for five NJT lines, 11 Amtrak and Acela runs, Light Rail and PATH service into Lower Manhattan.
As opposed to many other New Jersey cities, Newark is a hub for inbound commuters rather than a bedroom community. Pre-pandemic, over 100,000 workers commuted into Newark every day, though a large number continue to. It’s the leading economic center for the insurance, finance, healthcare, education, legal and international shipping industries in the state. And despite its gritty reputation, it’s a very livable city.
Newark is a diverse city of hardscrabble blue-collar workers, young professionals, singles and naturalized citizens.
The average age is a low 38.5. And the median household income is a hardworking $35,000. But there is much to do. The New Jersey Performing Arts Center features the New Jersey Symphony Orchestra and the New Jersey State Opera. The Newark Museum of Art is the largest museum of any kind in the state. The city offers a number of parks from Colonial Commons to the Passaic Riverfront.
And the 15-year-old Prudential Center is home to the NHL’s Devils, the state’s only indoor major league franchise, and Big East basketball as well as large-scale concerts and touring shows.
Population: 30,723
Average age: 41.6
Median household income: $137,672
Average commute time: 34.9 minutes
Walk score: 26
Studio average rent: $2,263
One-bedroom average rent: $2,424
Two-bedroom average rent: $3,024
Talk about a college town. Princeton is a leafy, convenient, high-quality small city. It’s just a 20-minute drive into Trenton, the state capital, and equidistant from Center City Philadelphia and Lower Manhattan. But one never needs to leave Princeton to enjoy the Ivy League life.
Of course, both the reputation and economy of Princeton surround the university. The centralized campus is an educational, cultural and entertainment hub for the city, but there is much to life off-campus. The most popular corridor is the shopping and dining district along Nassau Street. This includes popular locations like Princeton Record Exchange, P.J’s Pancake House, Hoagie Haven and the stores in Palmer Square.
With superior public and private schools, a stop on Amtrak and New Jersey Transit lines, high quality of life, and a low crime rate, Princeton often finds itself at the top of “Best Places to Live” rankings. But that quality comes at a price. The median household income climbs to near $140,000. And even with all those students, rents are pricy at $2,424 for an average one-bedroom and $3,024 for two.
Population: 88,763
Average age: 45.5
Median household income: $79,607
Average commute time: 37.1 minutes
Walk score: 38
Studio average rent: N/A
One-bedroom average rent: $1,177
Two-bedroom average rent: $1,744
The only Jersey Shore location on this list. Is it Wildwood? Beach Haven? Asbury Park? Nope. It’s the residential, family-friendly beach-and-shore town of Toms River.
The suburban ying to nearby Seaside Heights’ yang, Toms River is less Snooki and more Little League baseball, strollers at the park and mall food courts. That doesn’t mean Toms River is in any way boring.
Situated about 80 minutes from both New York and Philadelphia, Toms River is a popular summer home destination for families. But for most, it’s a year-round compromise between suburbs and shore.
Most of the township is on the mainland. Inland sites include Ocean County College, which features Novins Planetarium and The Grunin Center for the Arts. Also nearby is Community Medical Center. And the super-regional Ocean County Mall is one of the largest suburban-style indoor malls along the shore.
Toms River’s downtown is on the south end along Main and Water streets, featuring a number of restaurants, cafes, bakeries and retail stores, along with recreational Huddy Park. On the north end jutting out into Barnegat Bay is marshy Cattus Island County Park. And held annually is the Toms River Halloween Parade, the second-largest Halloween parade in the world behind only New York City’s.
But it’s not all malls and soccer fields. Dover Beaches North and South are also part of Toms River Township. These beach towns lie on Barnegat Peninsula, the oceanfront barrier shore across the bay. Just north of the infamous MTV beach town of Seaside Heights, the Dovers offer gorgeous beaches without all of the drama.
Find your own best place to live in New Jersey
The best places to live in New Jersey range from densely populated New York ‘burbs with bustling nightlife to family-friendly suburban retreats. But no matter where you live in Jersey, there are amazing places to call home. And you can find your next great Jersey city right here on rent.com. Just don’t forget the Springsteen CDs.
Rent prices are based on a rolling weighted average from Apartment Guide and Rent.’s multifamily rental property inventory of one-bedroom apartments in March 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.
Other demographic data comes from the U.S. Census Bureau.
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.
The Office of Federal Housing Enterprise Oversight announced yesterday that it is changing the way Fannie Mae and Freddie Mac must identify and report mortgage fraud in an effort to minimize the ongoing problem.
Specifically, the new policy guidance was altered to require that both companies “immediately” report “insider fraud”, which is defined as knowledge that “a board member, officer, employee, or contractor engaged by the enterprise has or may have engaged in mortgage fraud or possible mortgage fraud”.
The enhanced rules also require the two mortgage financiers to report any pattern of conduct or behavior that is “interpreted as mortgage fraud or possible mortgage fraud”.
In a statement released yesterday, OFHEO director James Lockhart noted that it was important to update the guidance of fraud reporting to help protect consumers and the government sponsored entities.
“Mortgage fraud can pose tremendous risks for consumers,” said Lockhart. “This guidance reflects the ongoing work of both OFHEO and the Enterprises in the development and improvement of mortgage fraud detection and reporting,” he added.
Per the OFHEO, the new policy guidance:
– Permits the Enterprises to designate scenarios that rise to a “pattern” of reportable cases of mortgage fraud or possible mortgage fraud further enhancing their reporting to OFHEO;
– Expands the immediate notification requirements to OFHEO to include situations involving insider fraud;
– Revises the time frame and format of reporting to follow the Department of the Treasury’s Financial Crimes Enforcement Network requirements; and,
– Adds clarifications to the definition of mortgage fraud, which continues to be defined as any material misstatement, misrepresentation, or omission such as, but not limited to, false information contained in identification and employment documents, false mortgagee or mortgagor identity, fraudulent appraisals, theft of custodial funds, non-remitted payoff funds, misrepresentations of borrower funds, and property flipping where designed to falsely inflate property value.
Jumbo Loans
According to an OFHEO report just released, assuming Congress decides to raise the conforming loan limit, Fannie and Freddie would likely only purchase low-risk jumbo loans.
These include fixed-rate mortgages and fully amortizing mortgages, which made up only 30% of jumbo loan originations in the first half of 2007, according to the report.
If a proposed bill were to be enacted, the new conforming loan limit for Los Angeles and Orange County could range from $568,000 to $588,400, and be as high as $625,500 in the Bay area.
But the OFHEO has found a number of drawbacks to raising the conforming limit, including greater credit risk which could have a negative impact on both the GSE’s and the common borrower.
For those who love winter sports and other year-round outdoor recreation, it’s worthwhile to consider Salt Lake City as a potential home. An attractive destination, full of ski resorts and some of the “greatest snow on earth,” the city and its surrounding area provides mass appeal making it worth getting to know.
Even as you’re busy skiing in the winter and hiking through canyons and over mountains in the summer, you do still need to consider whether the cost of living in Salt Lake City will fit into your budget. At 8.4 percent above the national average, it’s one of the more expensive Utah cities, coming in slightly above Provo and almost 10 percent above Ogden.
Although most likely still affordable to most, here’s how the Salt Lake City cost of living breaks down by the most important necessities.
Housing costs in SLC
One of the biggest cost of living areas impacted by the influx in residents to Salt Lake City, Utah, is the real estate market. At 21.8 percent above the national average, prices have increased by almost 6 percent over last year.
The city’s housing costs, overall, are significantly higher than other Utah metros. They’re 10.6 percent above Provo and 25.3 percent above Cedar City. This puts specific apartment averages a little higher as well — a one-bedroom apartment averages around $1,440 per month, up 8 percent since last year, and a two-bedroom apartment averages $1,760 per month, up 5 percent.
Home prices are also on the rise, up 7.7 percent over last year. This increases the median sale price in Salt Lake City to $550,000.
Apartment hunting in Salt Lake City
There are a lot of options when it comes to finding an apartment in the best neighborhoods in Salt Lake City.
People’s Freeway is a popular area just south of Downtown for renters. A one-bedroom apartment in this laidback neighborhood averages out at $2,032 per month. Also attractive, Downtown Salt Lake gives you that urban feel with ample bars, restaurants and parks. Living here though costs you an average of around $1,900 per month for a one bed.
To stick more closely to the citywide average price, consider looking for rentals in Glendale. This neighborhood isn’t far from Downtown, and a one-bedroom rental here averages out at $1,444 per month.
Food costs in Salt Lake City
This city boasts a lot of diversity when it comes to food, offering up a variety of cuisines both in restaurants and at local grocery stores and global markets. Some of the city’s signature items though include fry sauce, the signature condiment of the city, and pastrami burgers. You’ll also get amazing honey from here. Utah is after all, the Beehive State.
Overall, the cost of living here when it comes to groceries is 3.5 percent above the national average. This is less than a one percent increase over last year, which hopefully means food prices haven’t seen too big of a price hike.
As it stands, you can expect to pay around $4.91 for a pound of ground beef and $2.13 for a dozen eggs. If you’re a coffee drinker, grocery store prices come out to about $5.35, while those who love orange juice in the morning will most likely shell out $4.67 for a container. Many of these prices sit on the higher side when compared with other Utah cities.
Utility costs
The only piece to your cost of living puzzle that’s below average are utilities. In Salt Lake City, they’re 6.4 percent below the national average. This is good news since you’ll most likely run your heater pretty hard once it gets cold. It’s common to see temperatures get below freezing for most of the winter.
Averages are also low enough to knock Salt Lake City out of the most expensive Utah city in this category. It’s still on the high end, but you’ll pay more in Cedar City, where costs are 2.1 percent below the national average.
When it comes to your monthly power bills, these averages mean you can expect to pay about $151 per month in utilities in Salt Lake City, and $166 per month in Cedar City.
Transportation costs
Transportation costs in SLC are 13.1 percent above the national average. This means that potentially the best way to save a little on this particular cost of living piece is to mix things up.
If you need to get around by car, remember to take into account the cost of parking. Salt Lake City has meters that average around $2 per hour. There are also plenty of parking garages that vary in cost.
If you’re able to tap into public transportation, TRAX, an electric light rail system, runs three different lines to get you where you need to go. There are the blue, red and green lines moving through 50 stations, including the airport. The city is also part of a comprehensive bus system with more than 120 routes. Seasonal ski service is another form of public transportation you can take advantage of from November/December through March/April.
Fares include the local bus, TRAX and the city’s streetcar. A one-way fare is $2.50, and a day pass is $5. It’s $85 to purchase a monthly pass.
When the weather is nice, you can save on transportation by taking advantage of the fresh air and going about on foot or by bike. Salt Lake City boasts a 67 walk score and a 73 bike score.
Healthcare costs
Paying for healthcare is never an easy line item in your budget. Costs can vary greatly between people based on your own health needs, prescription costs and history. Although the city itself has healthcare costs that are 2.1 percent above the national average, what you pay out-of-pocket won’t always align with averages.
Salt Lake City healthcare costs are the highest in Utah by a significant amount. Most other major cities are below the national average, with the lowest being Cedar City at 10.1 percent below. Even Provo, the closest city in price to Salt Lake, is still 6.5 percent lower than the national average.
This may impact what you pay when you go see your doctor, although this cost is highly dependent on your insurance coverage. If you don’t have insurance though, expect to spend, on average, $121.40 at the doctor, $94.80 at the dentist and $114.19 when seeing the eye doctor. The average spend in prescription medications, without insurance, reaches up to $510.44.
Goods and services costs
The cost of living in Salt Lake City has many moving parts, but one of the best ones is anything in the goods and services category. These are all the extras you work into your monthly budget. Both fun and functional, it’s what you hope to get to do each month, but are also often willing to cut if money gets tight.
Overall, goods and services in Salt Lake City are 2.2 percent above the national average. This is a 2.2 percent decrease over last year. That’s good news, and may mean prices for things like a movie ticket ($12.95), a haircut ($19.40) or even a bottle of wine ($8.99) are going down.
Taxes
When it comes to budgeting for shopping, it’s good to know that Salt Lake City has a 7.75 percent sales tax rate. That means for every $1,000 you spend on furnishing your new apartment, for example, $77.50 will go straight to taxes.
This rate is calculated by combining the 4.85 percent statewide rate with a county tax, city tax and special tax.
Taxes will hit you again when it’s time to file your annual return, however, the state of Utah has a standard income tax rate of 4.85 percent. You pay this no matter your income.
How much do I need to earn to live in Salt Lake City
Setting aside 30 percent of your gross income is one of the best ways to budget for rent. If you align your estimated monthly costs with this number, you should still be able to afford all the other pieces that make up the cost of living in Salt Lake City.
Working backward, if the average one-bedroom apartment here is $1,475, you’d need to earn at least $57,960 a year to make the 30 percent rule work.
This is good news for many residents, where, the median household income is $63,156, slightly higher than what you’d need.
To best figure out how much you can afford in rent, check out our rent calculator to see what you have to work with.
Free things to do in SLC
Being a state capital, the first free activities that come to mind include touring the Utah State Capitol and the Governor’s Mansion. While you can tour the capitol building any day it’s open, the Governor’s Mansion only has tours on the first Wednesday of every month, from 2 to 4 p.m.
The scenic backdrops around Salt Lake City make the parks all over town another freebie that’s extra special. Some favorites to check out include:
Sugar House Park, the largest park in Salt Lake at 110 acres
Liberty Park, one of the shadiest parks in the city
Memory Grove Park, with its Liberty Bell replica
Canyon Rim Park, a popular festival location
Other popular spots in Salt Lake that are also easy on the wallet include the Clark Planetarium. Admission to the exhibits is always free, though you will have to buy tickets if you’re going to see a special film. For a free annual event, check out the Living Traditions Festival each May. This special event celebrates the city’s diverse ethnic communities and traditions.
Living in Salt Lake City
There are so many good reasons leading people to flock to this beautiful Utah city; what will yours be? From its proximity to the mountains and many national parks to its unique culture and young, vibrant vibes, there’s something for everyone here. It’s no wonder Salt Lake is one of the best cities in Utah.
So, if you’re craving a little snow, with plenty of skiing, and want to live in a fun spot that continues to grow and thrive, it’s time to start planning your move to Salt Lake City today.
The Cost of Living Index comes from coli.org.
The rent information included in this summary is based on a calculation of multifamily rental property inventory on Rent. as of November 2022.
Rent prices are for illustrative purposes only. This information does not constitute a pricing guarantee or financial advice related to the rental market.
FHA loans have been making homeownership more accessible for decades. Tailored to borrowers with lower credit, the FHA makes it possible to buy a house with a credit score of just 580 and only 3.5% down.
But home buyers aren’t the only ones who can benefit. For current homeowners, an FHA refinance may let you access low rates and home equity, even without great credit.
Not sure whether you’ll qualify for a mortgage? Check out the FHA program. You might be surprised.
Verify your FHA loan eligibility. Start here
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>Related: How to buy a house with $0 down: First-time home buyer
What is an FHA loan?
An FHA loan is a mortgage insured by the Federal Housing Administration (FHA).
FHA insurance protects mortgage lenders, allowing them to offer loans with low interest rates, easier credit requirements, and low down payments (starting at just 3.5%).
Thanks to their flexibility and low rates, FHA loans are especially popular with first-time home buyers, home shoppers with low or moderate incomes, and/or lower-credit home buyers.
But FHA financing isn’t limited to a certain type of buyer — anyone can apply.
Verify your FHA loan eligibility. Start here
How does an FHA loan work?
The first thing to know about FHA mortgages is that the Federal Housing Administration doesn’t actually lend you the money. You get an FHA mortgage loan from an FHA-approved bank or lender, just like you would any other type of home mortgage loan.
The FHA’s role is to insure these mortgages, offering lenders protection in case borrowers can’t pay their loans back. In turn, this lets mortgage lenders offer FHA loans with lower interest rates and looser standards for qualifying.
The one catch — if you want to call it that — is that you pay for the FHA insurance that protects your mortgage lender. This is called “mortgage insurance premium” or MIP for the life of the loan or until the FHA home loan is refinanced into another type of mortgage. We go over this in detail below.
Types of FHA loans
FHA loans offer various options to meet different home buying needs. These government-backed loans are designed to make homeownership more accessible, especially for those with less-than-perfect credit scores or limited savings.
Each type of FHA loan is tailored to different financial situations and home buying needs. Here’s what you can expect.
Compare FHA loan quotes from multiple lenders. Start here
FHA mortgage loan
An FHA mortgage is ideal for first-time home buyers, requiring a minimum credit score of 580 for a 3.5% down payment. Those with credit scores between 500 and 579 can still qualify for a 10% down payment. These loans are popular due to their lenient credit score requirements and low-down payment options.
FHA rate-and-term refinance
An FHA refinance loan is suited for borrowers looking to improve their loan terms or lower interest rates, especially if their credit scores have improved since obtaining their original mortgage. It offers a way to adjust loan terms to better fit current financial situations.
FHA Streamline Refinance
For current FHA loan holders, the FHA Streamline Refinance provides an efficient way to refinance with minimal documentation and underwriting. It often results in lower interest rates and can potentially reduce mortgage insurance premiums. This option is advantageous for those who want to refinance without a complicated process.
FHA cash-out refinance
An FHA cash-out refinance allows homeowners to tap into their home equity, converting it into cash. It requires a minimum credit score of 620, and borrowers must leave at least 15% equity in their home after the refinance. It’s suitable for those needing extra funds for expenses or investments.
FHA Home Equity Conversion Mortgage (HECM)
HECM is a reverse mortgage for homeowners aged 62 and older, allowing the conversion of home equity into cash. It provides financial flexibility for seniors by enabling access to their home equity without selling the home.
FHA 203(k) loan
The FHA 203(k) loan is designed for home purchases requiring renovations. It combines the cost of the home and renovation expenses into one loan. Borrowers must meet specific credit score requirements and ensure that renovations are completed within six months.
FHA Energy Efficient Mortgage
This loan type allows borrowers to include energy-efficient upgrades in their FHA loan. It’s aimed at reducing utility costs and increasing the home’s environmental friendliness, thereby potentially increasing its value.
Section 245(a) loan
The Section 245(a) program is for borrowers expecting an increase in their income. It offers a graduated payment schedule that starts low and increases over time, aligning with anticipated income growth. This loan is particularly beneficial for young professionals expecting career advancement.
Check your FHA loan eligibility. Start here
FHA loan requirements
Homeownership can be a liberating experience, especially for first-time buyers. With their flexible guidelines and government backing, FHA home loans provide a welcoming path.
Understanding FHA loan requirements can make the process much easier, opening the door to a future in your ideal home.
Check your FHA loan eligibility. Start here
To be eligible for an FHA loan, applicants must adhere to specific guidelines:
The property must undergo a home appraisal by an FHA-approved appraiser.
The property must serve as the applicant’s primary residence; investment properties and second homes are not eligible.
Occupancy of the property is required within two months following the closing.
A mandatory inspection is conducted to ensure the property meets FHA’s basic standards.
There are a few more specific conditions to qualify, such as a down payment amount, mortgage insurance, credit score, loan limits, and income requirements.
FHA loan down payment requirements
FHA loans require a minimum down payment, which varies based on credit score. For credit scores of 580 and above, a minimum down payment of 3.5% is required. Borrowers with credit scores between 500 and 579 must make a 10% down payment.
FHA mortgage insurance premiums
FHA mortgage insurance premium (MIP) is what makes the FHA program possible. Without the MIP, FHA-approved lenders would have little reason to make FHA-insured loans.
There are two kinds of MIP required for an FHA loan. One is paid as a lump sum when you close the loan, and the other is an annual premium, which becomes less expensive each year as you pay off the loan balance:
Upfront Mortgage Insurance Premium (UFMIP) = 1.75% of the loan amount for current FHA loans and refinances
Annual Mortgage Insurance Premium (MIP) = 0.85% of the loan amount for most FHA loans and refinances
MIP is split into monthly payments that are included in your mortgage payment. You’ll have to pay FHA insurance for the life of the loan or if you refinance into another type of mortgage loan.
The good news is that, as a homeowner or home buyer, your FHA loan’s MIP rates have dropped. Today’s FHA MIP costs are now as much as 50 basis points (0.50%) lower per year than they were in previous years.
Also, you have ways to reduce what you’ll owe in FHA MIP.
Depending on your down payment and loan term, you can reduce the length of your mortgage insurance to 11 years instead of the entire loan.
Loan term
Original down payment
MIP duration
20, 25, 30 years
Less than 10%
Life of loan
20, 25, 30 years
More than 10%
11 years
15 years or less
Less than 10%
Life of loan
15 years or less
More than 10%
11 years
Or, you could refinance out of FHA MIP at a later date.
With FHA interest rates as competitive as they are today, refinancing could reduce your monthly mortgage payments and cancel your mortgage insurance premium if you have enough equity in the home.
Check your FHA loan rates. Start here
FHA loan credit score minimums
The minimum credit score requirement for an FHA loan is 500. However, a score of 580 or higher allows for a lower down payment. Credit scores directly impact loan terms and down payment amounts.
Debt-to-income ratio
FHA loans consider the borrower’s debt-to-income (DTI) ratio, a measure of monthly debt payments against monthly income. The FHA prefers a DTI ratio of no more than 43%, though exceptions can be made for higher ratios with compensating factors.
Income and employment requirements
There is no specific income threshold for FHA loans, but borrowers must demonstrate steady employment history. Verification includes pay stubs, W-2s, tax returns, and bank statements.
FHA loan limits
Loan limits for FHA loans vary by county. However, starting January 1, 2024, the new FHA loan limit will be $498,257 for a single-family home in most parts of the country. Limits increase for 2-, 3-, and 4-unit properties.
FHA loan rates
Interest rates for FHA loans are competitive and can vary based on factors such as prevailing market rates, borrower’s credit score, income, loan amount, down payment, and DTI ratio. Government backing often enables lenders to offer lower rates compared to conventional mortgages.
Compare your FHA loan rates from multiple lenders. Start here
Today’s rates for a 30-year, fixed-rate FHA loan start at % (% APR), according to The Mortgage Reports’ daily rate survey.
Thanks to their government backing, FHA loan rates are competitive even for lower-credit borrowers. But interest rates can vary a lot from one lender to the next, so be sure to shop around for your best offer.
FHA loan benefits
Check your FHA loan eligibility. Start here
1. Lower down payment: Just 3.5 %
For today’s home buyers, there are only a few mortgage options that allow for down payments of 5% or less. The FHA loan is one of them.
With an FHA mortgage, you can make a down payment as small as 3.5% of the home’s purchase price. This helps home buyers who don’t have a lot of money saved up for a down payment along with home buyers who would rather save money for moving costs, emergency funds, or other needs.
2. FHA allows 100% gift funds for the down payment and closing costs
The FHA is generous with respect to using gifts for a down payment. Very few loan programs will allow your entire down payment for a home to come from a gift. The FHA will.
Via the FHA, your entire 3.5% down payment can be a gift from parents or another family member, an employer, an approved charitable group, or a government homebuyer program.
If you’re using a down payment gift, though, you’ll need to follow the process for gifting and receiving funds.
3. FHA loans allow higher debt-to-income ratios
FHA loans also allow higher debt-to-income ratios.
Your debt-to-income ratio, or DTI, is calculated by comparing two things: your debt payments and your before-tax income.
For instance, if you earn $5,000 a month and your debt payment total is $2,000, your DTI is 40%.
Officially, FHA maximum DTIs are as follows.
31% of gross income for housing costs
43% of gross income for housing costs plus other monthly obligations like credit cards, student loans, auto loans, etc.
However, a 43% DTI is actually on the low end for most FHA borrowers. And FHA will allow DTI ratios as high as 50%. Although to get approved at such a high ratio, you’ll likely need one or more compensating factors — for instance, a great credit score, significant cash savings, or a down payment exceeding the minimum.
In any case, FHA is more lenient in this area than other mortgage loan options.
Most conventional mortgage programs — those offered by Fannie Mae and Freddie Mac — only allow debt-to-income ratios between 36% and 43%.
With down payments of less than 25%, for example, Fannie Mae lets you go to 43% DTI for FICOs of 700 or higher. But most people don’t get conventional loans with debt ratios that high.
4. FHA loans accept lower credit scores
Officially, the minimum credit scores required for FHA mortgage loans are:
580 or higher with a 3.5% down payment
500-579 with a 10% down payment
High credit scores are great if you have them. But past credit history mistakes take a while to repair.
FHA loans can help you get into a home without waiting a year or more for your good credit to reach the “excellent” level. Other loan programs are not so forgiving when it comes to your credit rating.
Fannie Mae and Freddie Mac (the agencies that set rules for conventional loans) say they accept FICOs as low as 620. But in reality, some lenders impose higher minimum credit scores.
5. FHA even permits applicants with no credit scores
What if an applicant has never had a credit account? Their credit report is, essentially, blank.
FHA borrowers with no credit scores may also qualify for a mortgage. In fact, the U.S. Department of Housing and Urban Development (HUD) prohibits FHA lenders from denying an application based solely on a borrower’s lack of credit history.
The FHA allows borrowers to build non-traditional credit as an alternative to a standard credit history. This can be a huge advantage to someone who’s never had credit scores due to a lack of borrowing or credit card usage in the past.
Borrowers can use payment histories on items such as utility bills, cell phone bills, car insurance bills, and apartment rent to build non-traditional credit.
“Not all lenders who are FHA approved offer these types of loans, so check with your loan officer individually,” cautions Meyer.
6. FHA loans can be up to $ in most of the U.S.
Most mortgage programs limit their loan sizes, and many of these limits are tied to local housing prices.
FHA mortgage limits are set by county or MSA (Metropolitan Statistical Area), and range from $ to $ for single-family homes in most parts of the country.
Limits are higher in Alaska, Hawaii, the U.S. Virgin Islands, and Guam, and also for duplexes, triplexes, and four-plexes.
7. FHA also allows extended loan sizes
As another FHA benefit, FHA loan limits can be extended where home prices are more expensive. This lets buyers finance their home using FHA even though home prices have skyrocketed in certain high-cost areas.
In Orange County, California, for example, or New York City, the FHA will insure up to $ for a mortgage on a single-family home.
For 2-unit, 3-unit and 4-unit homes, FHA loan limits are even higher — ranging up to $.
If your area’s FHA’s loan limits are too low for the property you’re buying, you’ll likely need a conventional or jumbo loan.
8. If you have an FHA loan, you can lower your rate with an FHA Streamline Refinance
Another advantage for FHA-backed homeowners is access to the FHA Streamline Refinance.
The FHA Streamline Refinance is an exclusive FHA program that offers homeowners one of the simplest, quickest, and most affordable paths to refinancing.
An FHA Streamline Refinance requires no credit score checks, no income verifications, and home appraisals are waived completely.
In addition, via the FHA Streamline Refinance, homeowners with a mortgage pre-dating June 2009 get access to reduced FHA mortgage insurance rates.
Verify your FHA loan eligibility. Start here
FHA loan disadvantages
What is the downside to an FHA loan? Among the numerous benefits of FHA loans, there are certain disadvantages that potential borrowers should be aware of. These drawbacks can impact the overall cost and flexibility of the loan.
Here are the downsides that you should know about FHA home loans.
FHA loan mortgage insurance premiums
One of the primary drawbacks of FHA loans is the mandatory mortgage insurance premiums. These include an upfront premium at closing, generally 1.75% of the loan amount, and ongoing monthly payments. This additional cost can make FHA loans more expensive over the long term
Loan limits
One notable limitation of FHA loans is the lower loan limits compared to conventional loans, which can be restrictive for higher-income buyers. The FHA mortgage limit for a one-unit property ranges from $ to $ for single-family homes in most parts of the country, which may not be sufficient in areas with higher property values.
Strict property requirements
FHA loans come with stringent property requirements. The purchased home must be the borrower’s primary residence and must meet specific safety and condition standards. This requirement can limit the types of properties that qualify for an FHA loan.
FHA loan alternatives
Alternative loans, like USDA and VA loans, offer distinct advantages, such as no down payment requirements, but come with specific eligibility criteria. Understanding these alternatives ensures you make a well-informed decision about the type of mortgage that’s right for you.
Conventional 97
The Conventional 97 program comes with a down payment requirement of just 3%. It stands out due to the absence of income limits and mandatory home buyer education, making it accessible to a broader range of homebuyers.
Check your conventional loan eligibility. Start here
HomeReady Mortgage by Fannie Mae
The HomeReady mortgage program is designed for low- to moderate-income families, allowing a home purchase with only a 3% down payment. Furthermore, this program permits the entire downpayment and closing costs to be covered by gifts or grants, offering significant financial flexibility.
Freddie Mac Home Possible
The Home Possible loan is notable for its reduced mortgage insurance costs compared to other similar programs. With a 3% down payment requirement and lower ongoing costs, Home Possible is an attractive alternative for those looking to save on mortgage insurance.
USDA loans
USDA loans, backed by the U.S. Department of Agriculture, are an attractive alternative, especially for moderate-income buyers in rural areas. They don’t require a down payment, which is a significant advantage. However, eligibility for USDA loans is restricted based on income and geographical limits, and not every property qualifies for this type of financing.
VA loans
VA loans are another viable alternative, particularly for U.S. military service members, veterans, and certain surviving spouses. Like USDA loans, VA loans also require no down payment. However, eligibility for VA loans is exclusive to the military community, limiting their accessibility to the general public.
FAQ: FHA loans
Can I choose between a fixed rate and an adjustable-rate FHA loan?
Yes, FHA loans offer both fixed-rate and adjustable-rate (ARM) options. A fixed-rate FHA loan provides a consistent interest rate and monthly payment for the life of the loan, ideal for those who prefer stability. An adjustable-rate FHA loan, on the other hand, has an interest rate that can change over time, typically offering lower initial rates.
Do FHA loans have lower interest rates?
FHA loans often have lower interest rates compared to many conventional loan options. This is largely due to the government backing of FHA loans, which reduces the risk for lenders. As a result, lenders are generally able to offer more competitive mortgage rates to borrowers. However, the actual interest rate you’ll receive on an FHA loan can vary based on several factors, including your credit score, loan amount, and the current market conditions. It’s always a good idea to compare rates from multiple lenders to ensure you’re getting the best deal possible for your situation.
Are FHA loans assumable?
Yes. A little-known FHA benefit is that the agency will allow a home buyer to assume the existing FHA mortgage on a home being purchased. The buyer must still qualify for the mortgage with its existing terms but, in a rising mortgage rate environment, it can be attractive to assume a home seller’s loan. Five years from now, for example, a buyer of an FHA-insured home could inherit a seller’s sub-3 percent mortgage rate. This can make it easier to sell the home in the future.
Can you buy a rental property with an FHA loan?
While you can’t buy a true rental property with an FHA loan, you can buy a multi-unit property — a duplex, triplex, or fourplex — live in one of the units, and rent out the others. The rent from the other units can partially, or even fully, offset your mortgage payment.
Are closing costs higher for FHA loans?
Closing costs are about the same for FHA and conventional loans with a couple of exceptions. First, the appraiser’s fee for an FHA loan tends to be about $50 higher. Also, if you choose to pay your upfront MIP in cash (instead of including this 1.75% fee in your loan amount), this one-time fee will be added to your closing costs. Additionally, the fee can be rolled into your loan amount.
What credit score do I need for an FHA loan?
Most borrowers will need a minimum credit score of 580 to get an FHA loan. However, home buyers who can put at least 10% down are eligible to qualify with a 500 score. Yet, each lender may have their own credit score minimums, separate to those established by the Federal Housing Administration.
What is the loan-to-value ratio requirement for FHA loans?
The loan-to-value (LTV) ratio for FHA loans typically cannot exceed 96.5%, meaning you can borrow up to 96.5% of your home’s value. This high LTV ratio is part of what makes FHA loans accessible, especially for first-time homebuyers who might not have substantial savings for a down payment.
How does PMI work with FHA loans?
For FHA loans, the equivalent of private mortgage insurance (PMI) is the mortgage insurance premium (MIP). MIP is required for all FHA loans, regardless of the down payment or loan-to-value ratio. This insurance protects lenders from losses in case of borrower defaults and is included in both upfront and ongoing mortgage costs.
What happens if I default on an FHA loan?
If you default on an FHA loan, the lender can initiate foreclosure proceedings. The FHA loan program, backed by the Federal Housing Administration, is designed to minimize the risk of defaults by offering more lenient qualification criteria. However, consistent failure to make mortgage payments may lead to foreclosure, impacting your credit score and homeownership status.
Today’s FHA loan rates
Now is an opportune time to consider an FHA loan, with current mortgage rates being historically competitive.
FHA loan interest rates are typically among the most competitive. To capitalize on these favorable rates, start by comparing offers from FHA-approved lenders.
Finding the most affordable loan could be just a few clicks away. Begin your journey towards homeownership today by exploring your options and discovering the best rates available for your financial situation.
Time to make a move? Let us find the right mortgage for you
Since the calendar turned to 2024, the internet has been abuzz with trend reports and home decor predictions that offer a glimpse into what lies ahead in the world of interior design.
For many, these lists may seem overwhelming, especially if you’re not planning to embark on a full-scale renovation this year. But fret not; there are simpler ways to elevate your home by getting creative with a DIY project or two.
Below, we’ll introduce you to 7 home trends experts predict will be big in 2024 and the DIY projects that can help you breathe new life into your living spaces.
DIY Projects That Will Elevate Your Home
Get your toolbox ready. From textured walls to living walls, home renovation experts predict these DIY projects are exactly what you need to elevate your home in 2024.
1. Using reclaimed materials
As more and more of us aspire to make eco-friendly home improvements in 2024, it’s no surprise that using reclaimed and recycled materials is gaining popularity among DIY enthusiasts.
Beyond their environmental benefits, reclaimed and salvaged materials bring a distinctive ‘well-loved’ quality that enriches interior designs with texture and depth. The weathered patina of reclaimed wood, for instance, can seamlessly enhance a home with a modern rustic style, while salvaged fireplaces and reclaimed bricks effortlessly complement modern farmhouse aesthetics. These materials possess a timeless charm, making them an ideal choice for elevating your home’s overall look.
If you’re seeking a quick and manageable DIY project that can be completed in an afternoon, consider exploring your local antique market for a set of vintage drawers and transform them into a unique plant display. Alternatively, give rustic scaffolding boards a fresh lease on life as distinctive kitchen shelves, or reimagine tin ceiling tiles as a one-of-a-kind kitchen backsplash.
For those willing to take on a slightly larger project, a salvaged barn door can be flipped into a statement headboard, and ordinary internal doors and windows can be replaced with antique shutters to achieve a truly bespoke finish.
2. Adding texture to walls
While the memories of popcorn ceilings and orange peel walls might remind you of outdated interior design trends from yesteryears, wall texture is poised to make a stylish comeback in 2024.
Embrace the classic elegance of a knockdown finish or the rustic charm of limewash paint to infuse subtle drama into your walls. For a touch of warmth, consider decorative plasters like stucco or tadelakt. The beauty of these unique finishes is that they can be applied to your walls through a DIY approach using a trowel or roller, making it a cost-effective way to enhance your home’s ambiance.
And remember, texture doesn’t have to be just tactile. There are plenty of ways to introduce visual texture to your walls. Leading industry names like Benjamin Moore are bringing color-washed walls back into the spotlight this year, and even famous figures like Blake Lively are embracing this trend in their own homes.
3. Biophilic home improvements
‘In 2024, biophilic design and creating healthier living spaces are poised to be prominent trends,’ predicts Christine Marvin, Vice President of Strategy & Design at Marvin. To fully embrace this trend, consider decorating with plants, choosing natural color palettes and materials, or increasing natural light in your living areas.
Kriss Swint, design lead at Westlake Royal Building Products, emphasizes the importance of a closer connection with nature and its elements, citing potential benefits like increased well-being and productivity. ‘Growing concerns about wellness and the environment are driving demand for backyard improvements and the integration of nature into design. This includes features like green roofs, large windows, and living walls.’
wooden kitchen cabinetry is predicted to dominate kitchen trends this year.
However, before you jump into a full-scale kitchen remodel, consider that you can revamp this space without breaking the bank by resurfacing or refinishing your existing cabinet fronts.
Rather than reaching for your hammer right away, consider stripping paint from wood cabinets you already have to reveal the material beneath. Alternatively, you can replace your current kitchen cabinet fronts with custom-made ones that perfectly fit your space. Consult a local woodworker for bespoke cabinetry tailored to your kitchen’s dimensions or explore options like preloved wooden cabinet fronts available in salvage yards or online marketplaces.
‘A great DIY hack for achieving premium quality without overspending is using Ikea cabinets combined with custom fronts,’ says Archie Tkachoff, Founder of Arteum.design. ‘This approach is not only cost-effective but also versatile, allowing for the application of custom doors on new and existing cabinets.’
Archie Tkachoff
walk-in pantry?
‘In 2024, we expect to see pantries being upgraded with intelligent organization solutions, providing more space and functionality,’ predicts Laurel Vernazza, Home Design Expert at The Plan Collection. ‘When designed with floor-to-ceiling storage, the walk-in pantry can be used to conceal air fryers, coffeemakers, and larger appliances such as dishwashers, with plenty of room for pots and pans, spices, and dry goods’.
Simply clear the kitchen closet and assess its layout. Install adjustable shelving for better storage, add hooks or racks for spices and dried goods, and improve visibility with an overhead light.
Laurel Vernazza
2-Tier Stainless Steel Lazy Susan
Butterfly Ginkgo K-Cup Carousel
coffee station or walk-in pantry.
Royal Check Large Enamel Canister
wainscotting.
7. DIY built-in bookshelves
The classic built-in bookshelf remains a popular choice for 2024, and it’s easy to see why. With just a modest amount of DIY expertise, you can easily turn an ordinary bookshelf into a faux built-in feature that instantly elevates your home.
Start by measuring your space and acquiring the right number of standalone bookcases for the job. We recommend options such as Ikea’s Billy bookcase or Wayfair’s Lagner bookcase, as they are well-suited to this task. Securely anchor these bookcases to the wall, ensuring they are level and perfectly aligned.
To achieve that coveted built-in appearance, add a plywood surround, crown molding, or decorative trim that complements your room’s style. After carefully caulking and sanding any rough edges, apply paint or stain to the bookshelves, allowing them to seamlessly blend into their surroundings.
Home renovation trends are typically less transient than paint trends, such as the color of the year, and can significantly improve the aesthetic and functionality of your home.
“America’s Finest City” has a price-point, and amenities, that live up to its nickname.
The eighth-most populous city in America, San Diego typically ranks around the same for the cost of living compared to other major cities in the country. Overall, San Diego’s cost of living comes in at 44 percent above the national average.
While that may seem steep, it’s important to realize that within this expensive city, there are plenty of pockets where the cost of living is more affordable. San Diego residents may already know where to look, but it’s something you can calculate, too. It’s all about understanding the price, and whether your expenses are still affordable in the city.
Below, we break down the five factors affecting the cost of living in San Diego to help you discover if “America’s Finest City” is a fit for you.
1. Housing costs and utilities in San Diego
Housing in San Diego doesn’t come cheap. In fact, the uninitiated may experience sticker shock at first glance when it comes to home prices.
Overall, housing costs are a whopping 115.6 percent higher than the national average. This is only slightly below the housing costs in Los Angeles and Orange County, and considerably higher than most California cities.
The average rent for a one-bedroom apartment in San Diego is about $2,887 per month, which is a 1 percent decrease in cost over last year. A two-bedroom is around $3,788 per month on average, a 1 percent increase over last year. Those prices fluctuate depending on the neighborhood and amenities.
If you’re looking to buy a home, the median price in San Diego is $930,000. Home prices are up 3 percent over last year. Most homes in San Diego sell within days, so if you have the means, you need to act fast.
To better understand how housing costs in San Diego compare to the rest of California, the average cost for a two-bedroom apartment in San Francisco is $4,939, over $1,151 more. The average home price in Los Angeles is $975,000, $45,000 more. The San Diego cost of housing may feel high, but it’s definitely not the highest in the state.
Apartment hunting around San Diego County
Although San Diego is an expensive city, prices vary greatly based on the neighborhoods you decide to check out. The difference in living expenses between a more expensive San Diego spot, and the least expensive, is pretty significant.
Trendy North Park, with its vibrant restaurant and nightlife scene, is an expensive neighborhood in the city, with one-bed rental prices at $2,300 per month on average. But, rest assured, there are plenty of areas offering apartments for a fraction of that price.
Case in point, City Heights, located inland and to the east of many better-known San Diego communities, offers one-bed apartments for an average rent of $1,700. Areas like Colina del Sol and Paradise Hills are also on the more affordable side, with one-bed rents averaging the same at $1,650 a month.
Utilities in San Diego
San Diego is known for its beautiful weather. Average temperatures hover around 76 degrees Fahrenheit for most of the year, but you’ll still feel some seasonal change, lots of rain and the occasional cold front.
If you live inland, summer days are scorchers, leading locals to crank up that air conditioning. On the flip side, some nights in the winter get really cold. As a result, a person could pay a hefty price for AC and heat.
Taking this into account, overall utility costs are 13 percent higher than the national average. This is an actually a increase over last year, where this particular piece of the cost of living in San Diego was 10 percent above the national average. Inflation has contributed to this number for every state.
2. Food costs and goods and services in San Diego
San Diego is famous for its diverse culinary scene. Whether you’re more inclined to try a pasta dish in Little Italy, some chile rellenos at an authentic Mexican restaurant in Old Town or fish tacos, a local favorite, you can find a deal on a meal just about anywhere. However, when it comes to casual dining, meals average out to around $25 per person.
Of course, most people don’t eat out all the time. With dozens of quality supermarkets and plenty of neighborhood farmer’s markets, meal planning and finding a deal on food is easy.
Keep in mind that groceries in San Diego run 10 percent higher than the national average. You’ll pay extra for certain staples like milk ($2.17 for a half-gallon), eggs ($4.85 for a dozen), bread ($3.63 for a 24-ounce loaf) and ground beef ($8.08 per pound).
Commodities and entertainment costs
As you tally up expenses in your cost of living calculator, don’t forget to budget for goods and services. This includes all the extras on your monthly expense sheet that you could live without, but really don’t want to deny yourself.
This category includes things like a session at a yoga studio ($24), movie tickets ($12.5 each), dry cleaning ($24) and a trip to the beauty salon ($80).
Overall, goods and services in San Diego cost 10 percent more than the national average, a slight dip of less than one percent over last year.
3. Transportation costs in San Diego
One of the many luxuries about life in San Diego is that the freeways are much calmer than those of Los Angeles. Traffic is tame during most hours of the day, although it gets a bit congested around common commute times. Still, transportation expenses are slightly higher than those in Los Angeles and 30.4 percent higher than the national average.
For any person who decides to use a car to get around the city, be prepared to pay to park. Parking can range from as little as $7 to as much as $32 based on parking type and whether you need to keep your car there overnight.
For those who choose to forgo driving altogether, San Diego offers an accessible public transportation system. The San Diego Metropolitan Transit System provides bus and trolley services across San Diego County, including a dedicated line for the University of California, San Diego.
Bus and trolley fares are the same. One way will cost $2.50, but you can purchase a day pass for $6 or a monthly pass for $72. Family weekends allow you to save a little on transportation. Up to two children, 12 and under, can ride free with a fare-paying adult.
If you just want to get around and enjoy life outside, San Diego’s layout makes it ideal for walking — it’s also convenient for bike enthusiasts. The city has a walk score of 53 and a bike score of 43.
4. Healthcare costs in San Diego
Healthcare is a primary concern in most people’s minds, and in San Diego, you can expect to pay slightly more in this category — about 7.2 percent above the national average. This is a slight dip in overall costs from last year.
Prices now are about 1.4 percent less. It’s also not the highest-priced city in the state by far. Los Angeles and most major cities in Northern California are higher than San Diego’s cost of living for healthcare.
A visit to a doctor will cost you about $145, while a dental checkup will run you around $120. You can also expect to pay a bit more for medications. For example, the median price for a bottle of Ibuprofen is about $13. When you factor in the maintenance appointments you’ll need each year, and your list of prescriptions, the price can add up.
Calculating average healthcare costs for everyone is difficult. Everybody has different needs for their body and healthcare routines vary drastically. As a result, you should consider your typical healthcare routines when creating your cost of living budget, factoring in your medicine regimens and insurance coverage.
5. Taxes in San Diego
Since taxes vary by location, it’s easy to get confused when it comes time to budget accordingly. Sales tax in San Diego is 7.75 percent. However, neighboring cities, where you may go shopping, can vary.
Live in San Diego, but prefer to shop in Oceanside? You’ll pay 8.25 percent in sales tax.
How much do I need to earn to live in San Diego?
Earlier, we discussed the fact that the housing piece to your cost of living in San Diego is quite a bit more than in other locations.
Experts generally recommend you allocate at least 30 percent of your annual income to rent, which means you should know the average salary that aligns with the average rent.
If a one-bedroom in San Diego is $2,879 per month, you’d need a job that pays at least $115,160 per year. You may have to consider a roommate or some creative living situation, given that the median annual income in San Diego is $89,457.
Although lower than what you’d need to pay the average rent, it’s not impossible to live comfortably. Our rent calculator can show you exactly how much you can afford and help you target specific areas within your budget.
Living in San Diego
San Diego is a wonderful place to live if you love warm beaches, temperate climates, great food and a lively club scene. It’s no wonder 35 million people visit each year and some of them end up living in San Diego after their vacation.
Whether those people choose to plant roots depends a lot on budget. What can you afford?
The Cost of Living Index comes from coli.org.
The rent information included in this summary is based on a calculation of multifamily rental property inventory on Rent. as of August 2023.
Rent prices are for illustrative purposes only. This information does not constitute a pricing guarantee or financial advice related to the rental market.