The slower housing market at the start of the year was not enough to prevent Fidelity National Financial from turning a profit.
During the first quarter of 2023, the Big Four title insurer reported revenue of $2.474 billion, down from $3.167 billion in Q1 2022, and a net income of $59 million compared to $400 million a year prior. Fidelity’s title segment reported revenue of $1.6 billion for the quarter, down from $2.4 billion a year ago, and a net income of $128 million, a decline compared to $191 million in the first quarter of 2022.
“We are pleased with our solid performance in the quarter as we continue to navigate a volatile and challenging environment,” Mike Nolan, the CEO of Fidelity, told investors and analysts on the firm’s first-quarter earnings call Thursday morning. “Starting with our title business, the focus remains on providing our customers exceptional service, protecting our policyholders and building our business for the long term.”
However, as Nolan acknowledged, these strong financial results came at a cost. In 2022, Fidelity laid off 26% of its field staff net of acquisitions, one of the largest cuts in the company’s over 175 year history. The headcount reductions continued into 2023, as Nolan reported that Fidelity laid off an additional 2% of its staff in Q1.
Thanks to these cuts, however, personnel costs for the quarter were down 23% year over year in the firm’s title segment alone.
This was good news for a segment that recorded sizable annual decreases in the number of purchase orders opened per day (29%), the number of refinance orders opened per day (67%), and the number of commercial orders opened per day (27%).
In addition to the drop in order count, direct title premiums fell 44% from a year ago to $428 million, agency title premiums were down 50% year over year to $550 million, and commercial revenue posted a 36% annual decline to $241 million.
Among all of these yearly decreases, however, there was some positive news. The number of purchase orders opened during the quarter was up 20% compared to the fourth quarter of 2022, and the average total fee per file was up 19% year over year to $3,446.
Executives also noted that in April, despite being down 23% year over year, purchase order volume was the best Fidelity has seen since August 2022.
“We expect the volatile market environment will continue to provide both headwinds and tailwinds for market participants,” Nolan said. “On the residential side, although there is not yet firm footing for rates in home affordability, there are solid fundamentals, such as pent-up demand, a growing working age and first time buyer population, that are expected to support a rebound once rates move downward and sellers and buyers more fully return to the market.”
One interesting item of note during Fidelity’s call came in response to a question on executives’ thoughts on the rumored Fannie Mae pilot program and the attorney opinion letters.
“We have talked with Fannie Mae and FHFA through ALTA [American Land Title Association] and even ourselves, and in regards to the rumor on the potential pilot with some kind of title waiver, we have not seen a proposal or anything that we could evaluate and respond to. But we have been really trying to impress upon the agencies that those kind of programs are untested and could lead to more uncertainty,” Nolan said. “At this time, we don’t know if there is a proposal that will come out or not. And then, with the acceptance of AOLs, there has been very little uptick on that, as they have indicated, and we don’t think that it is a lower cost alternative. It may even be more expensive — and we certainly think it is a lesser value product.”
Whether you’ve been a single mom since day one or are in the process of becoming a solo parent, raising a child on your own can be expensive. Housing, essentials, and extracurriculars add up. Add in unplanned days off for childcare, major expenses like dental work and medical insurance, or expenses like legal bills during a separation, and you may find yourself with your finances stretched thinner than you’d like.
One option to consider is a personal loan. This type of loan provides a lump sum of money up front you then pay back (plus interest) in monthly installments over time. You can use the funds from a personal loan for virtually any purpose, whether it’s making a large purchase, covering living expenses, or paying down other, higher-interest debt.
Read on for a closer look at personal loans for single moms, including their pros and cons, how to qualify, plus other funding options you may want to explore.
Why Might a Single Mom Need a Personal Loan?
There are many reasons why a single mother — or any parent — might consider applying for a personal loan. These include:
1. Consolidating debt
2. Covering the cost a move
3. Paying tuition or extracurricular expenses for children
4. Stopgap during times of unemployment
5. Covering housing costs, such as rent or a mortgage
6. Paying for a home remodeling project
7. Buying a car
8. Purchasing major appliances
Recommended: What Is a Personal Loan? How Do Personal Loans Work?
Are Personal Loans for Single Mothers Special?
In a word, no. The process of applying for a personal loan is the same for everyone. However, there may be particular approval hurdles to overcome as a single parent.
One is income. If you’re newly single, you may not have a steady income, which can make it more difficult to get approved for a personal loan. Another is your credit. If you’ve had to rely on credit cards to cover the cost of divorce or the transition to single parenting, your credit may not be what it used to be. The amount of debt you owe on your credit cards is one of the biggest factors affecting your credit score.
However, these obstacles aren’t insurmountable (more on that below).
Benefits and Risks of Personal Loans for a Single Mother
A personal loan can offer a single mom a valuable lifeline to meet immediate needs, such as unexpected expenses, education costs, or debt consolidation. However, taking on any type of debt generally comes with costs, as well as risks. Here’s a look at the pros and cons of getting a loan as a single mom.
Pros
Cons
Flexibility in fund usage
Interest and fees add to your costs
Quick access to funds
Risk of overborrowing
Fixed repayment schedule
Missed or late payments can negatively impact your credit
Interest rates are typically lower than credit cards
Can add to your debt burden
Pros of Personal Loans for Single Mothers
• Flexibility Personal loans provide flexibility in how you can use the borrowed funds. Whether it’s covering medical bills, home repairs, or summer camp tuition, personal loans can be used for a wide range of purposes.
• Quick access to funds Personal loans often come with a streamlined application process and relatively quick approval. You may be able to access the funds quickly, enabling you to address urgent financial needs promptly.
• Fixed repayment schedule Personal loans usually come with fixed monthly payments over a specified term. This predictability can make it easier for you to budget and plan your finances effectively.
• Potential for lower interest rates Depending on the borrower’s creditworthiness, personal loans can offer competitive interest rates compared to other types of borrowing, such as credit cards or payday loans. Single mothers with a good credit history may benefit from more affordable repayment terms.
Cons of Personal Loans for Single Mothers
• Interest and fees On top of interest, some lenders charge fees for personal loans, which increase the overall cost of borrowing. It’s important to carefully evaluate the terms and conditions to make sure you can comfortably manage the repayments without straining your budget.
• Risk of overborrowing As a single mom, you likely want to avoid overborrowing or taking on more debt than they can reasonably repay. Overcommitting to loan payments may lead to a cycle of financial stress and difficulty in meeting other essential expenses.
• Impact on credit score Taking out a personal loan creates a new line of credit, and if not managed properly, it could negatively affect your credit profile. Late or missed payments can damage creditworthiness, potentially impacting future borrowing opportunities.
• Debt burden A personal loan will add to your existing financial obligations as a single mother. Before opting for a loan, you’ll want to be certain to assess the long-term implications and consider whether the loan repayments align with your income and financial goals.
Is Getting a Personal Loan With No Income Possible?
If you’re a single mother with no job or you’ve been a stay-at-home-mother with little or no income of your own, it may be difficult, though not impossible, to qualify for a personal loan.
Lenders typically want to see proof of a regular income. However, that does not necessarily have to be job-related income. You may be able to count these other sources of income:
• Unemployment
• Alimony
• Child support
• Investment income
• Rental income
• Pension or annuity income
• Freelance work
• Gig work
If you don’t have much income to speak of, then you might consider a cosigner or co-applicant for your loan. This a person who agrees to make the loan payments if the main borrower cannot or does not. For some borrowers, family members have the financial flexibility to cosign on a loan, but it can be a good idea to have a conversation about expectations and potential hypotheticals if you were no longer able to pay back the loan.
Another option is to secure a personal loan with collateral. This is an asset of value, such as a vehicle or money in a savings account, you use to back the loan in case you default. Should you become unable to repay the loan, the lender can seize your collateral to recover their losses. This lowers risk for the lender, making steady income (or less-than-stellar credit) less critical.
Also keep in mind that if you have no income but excellent credit, you may still find a lender who is willing to offer you an unsecured personal loan.
You’ll also want to be wary, however, of lenders who advertise “No-Income Loans,” as these loans may come with sky-high interest rates, short repayment terms, and low loan amounts.
Alternatives to Personal Loans for Single Mothers
There are other alternatives to personal loans, depending on your financial circumstances and your needs. Here are some you might consider.
Home Loans for Single Mothers
If you own your home, using your home as a financial asset may be one way to borrow funds at a reasonable cost. If you have built up equity in your home, you may be able to tap that equity by getting a home equity loan or a home equity line of credit (HELOC). Just keep in mind that the loan is backed by your home. Should you have difficulty repaying the loan or credit line, you could potentially lose your home.
Government Resources for Single Parents
If your income is low, you may be eligible for one or more government assistance programs. Some options you may want to explore include:
• Special Supplemental Nutrition Program for Women, Infants, and Children (WIC)
• National School Lunch Program
• Temporary Assistance for Needy Families (TANF)
• Low Income Home Energy Assistance Program (LIHEAP)
• The Emergency Food Assistance Program
You can find more resources at enefits.gov.
Educational Aid for Single Mothers
If you’re considering going back to school, below are some programs that can help make it more affordable (or even free):
• Pell Grants
• Teach Grants
• Women’s Independence Scholarship Program (WISP)
There also may be private scholarships and grants for single parents available from the institutions you’re interested in. Speaking with the financial aid office may help you see the breadth of options available to you.
Other Financial Help For Single Mothers
Becoming a single mother, either by choice or circumstance, can feel overwhelming. But there is support out there. It can help to talk to other single parents in your community — you may be surprised by all the resources that are available. Other opportunities may include:
• Financial aid or tuition assistance If your children are in private school or extracurricular programs, there may be financial aid available to help lower the cost. Even if there’s not a formal program, it can’t hurt to explain your situation and ask what may be available.
• Employer-based programs Your human resources department may have certain programs, such as childcare coverage, free legal consultations, and access to financial planning and debt counseling, for eligible workers. Talk to your HR representative or look through their materials to assess what’s available.
• Family and friends People close to you may be willing to provide support, or there may be creative ways to trade services, such as babysitting, to get more financial help. If a friend or family member offers to loan you money, it can be helpful to put an agreement in writing, including any interest you will pay and the terms of repayment, so there is no confusion that can cause a rift in your relationship.
Recommended: Options for When You Can’t Afford Your Child’s College
The Takeaway
As a single mother, there are avenues that can help you manage your finances and achieve your financial goals, including taking out a personal loan. This type of financing can provide financial relief and flexibility, but it is important to weigh the pros and cons, compare options from different lenders, and assess your ability to manage repayments responsibly.
Think twice before turning to high-interest credit cards. Consider a SoFi personal loan instead. SoFi offers competitive fixed rates and same-day funding. Checking your rate takes just a minute.
SoFi’s Personal Loan was named NerdWallet’s 2023 winner for Best Online Personal Loan overall.
Photo credit: iStock/RyanJLane
SoFi Loan Products SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.
Checking Your Rates: To check the rates and terms you may qualify for, SoFi conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit.
External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.
On 02 August 2005, my friend Frank and his partner awoke at 2:45 a.m. to the dog barking and a neighbor knocking on their door. The apartment complex was on fire. They grabbed their dog and whatever they could carry and ran from the building.
“We lost everything,” he says. Later they’d find out that it was arson. A former employee of the apartment complex stole rent checks and set the office on fire. Frank was moving into a new apartment in ten days, and the new complex agreed to let them move in early. “We moved in with a plastic bag of groceries, paid for with a $50 food voucher from the Red Cross,” he says. The other 70 displaced tenants stayed in Red Cross shelters.
To make matters worse, Frank didn’t have renters insurance. “We didn’t think we’d ever need it,” he says. “You don’t see why you should pay this extra bill until you’re in a situation where you need it.” They had to start over from scratch.
Why Renters Skip the Insurance
There are any number of reasons renters don’t think insurance is a necessary expense. I myself didn’t have a policy until Frank’s situation motivated me to get one. Common reasons renters forgo an insurance policy include the following:
“What are the odds anything will happen?” The odds are not in your favor. The Bureau of Justice Statistics reports that renters are 50 percent more likely to be burglarized than homeowners.
“My landlord has insurance.” That means that your landlord (or condo association) has their valuables — the building — protected. Your belongings are not covered.
“I can’t afford renters insurance.” Many people are willing to spend a couple hundred dollars on clothes, but won’t spend the cash to protect themselves from the risk of losing everything they own. It’s possible to find a policy for $10-12 per month, though your premium will depend on location, the deductible, the insurance company, and coverage needs.
There are ways to lower the cost of coverage, including raising your deductible (make sure you can afford it, though) and having protective devices such as smoke detectors, extinguishers, and security alarms. Some insurance companies offer discounts to senior citizens. Also look for a multi-line discount, which is a discount for buying more than one type of policy from the same company (e.g., renters insurance and auto insurance).
I suspect that the main reason most people don’t have a policy, though, is that they don’t understand how renters insurance works, or why they need it.
Renters Insurance 101
Renters need a HO-4 policy. Condominium owners need a HO-6 policy. Both will cover personal property loss from “named perils,” which is insurance-speak for what you’re insured against. Your policy will likely include the following named perils:
Fire and lightning
Windstorm and hail
Smoke
Vandalism and malicious mischief
Theft
Accidental discharge of water
Other named perils covered sound like scenes from Die Hard (explosion, riot, damage caused by air crafts and falling objects), but I suppose you never know when German radical activists might terrorize your Christmas party.
Renters insurance also includes liability protection, which covers medical expenses for a person injured on your property and legal defense, if necessary. Additionally, if your apartment or condo becomes uninhabitable due to a named peril, your coverage will pay for somewhere to live in the meantime.
What is not covered: If you live an an area prone to floods, earthquakes, or hurricanes, you may need to purchase a rider, or separate policy. Also, if you have valuables that would exceed your policy limit, such as expensive jewelry or antiques, you’ll need a rider to recover the full loss.
Buying a Policy
Shopping for renters insurance is similar to shopping for other types of policies. Here are the basic steps:
Take inventory. This seems to be the step that most of us dread, but it’s where we should start. (Confession: I haven’t done it yet. It’s been languishing on my to-do list for almost a year now, but I’m going to make it a top priority.) If you lost everything, it’d be awful to have to recall every item you owned and it’s value. Better to document it. Here’s the plan of action:
Photograph or videotape each room.
List the value and serial and model number of items.
Attach receipts, if you have them.
Save the list and the photos or video to a DVD, and make at least three copies. Keep one copy in a fireproof place, one at an off-site location (could be a parent’s house or a safe-deposit box), and send one to your insurer.
There also are software programs that walk you through the process. The Insurance Information Institute provides free inventory software that helps you complete a room-by-room inventory.
Prepare. Write down a set of questions you want to ask your potential insurance providers. Some suggestions include:
Do you have brochures or any information you can send me in the mail? (Keep the ones from insurers that appear to be a good fit and use them to compare each provider’s policies.)
What could cause my rates to increase?
What discounts do you offer?
Does the liability insurance cover legal defense and medical expenses?
Do you pay actual cash value (ACV) or replacement cost coverage? (ACV coverage pays what your property was worth at the time it was destroyed or stolen, minus the deductible. Replacement cost coverage pays what it will cost to replace the items, minus the deductible. It costs more in premiums, but pays more if you file a claim.)
Do you offer separate policies for roommates? (Alternatively, talk to your roommate about splitting the cost of a policy.)
Shop around. To find the right provider and policy, consider the following:
Contact the insurance company that provides your auto insurance policy. Ask about multi-line discounts.
Call your local bank. Some banks offer insurance policies.
Search “renters insurance” online. Most providers have Web sites that give you a free quote.
Ask friends and neighbors which company they use, and if they are happy with their experience.
Updating Your Policy
Renters insurance is like many other forms of insurance – not fun to think about. But it isn’t a Ron Popeil rotisserie — don’t set it and forget it. Stay in touch with your agent to make sure you’re getting the best deal and taking advantage of new options or discounts. Also, be sure to contact her if your living situation changes, as in the following situations:
You moved. Each residence requires a unique policy.
You got a roommate: human or furball. You’ll need to decide on a separate or shared policy for the former. Make sure the latter is listed in your liability coverage.
You bought an expensive bauble or a pricey new toy. You need to have it listed in your policy, or you might need a separate rider to cover it.
It’s easier than you might think to find an affordable renters policy with good coverage, and it’s time and money well-spent. As my friend Frank says, “It’s the cheapest bill you’ll have. For very little money, we could have replaced everything we lost.”
If you are a renter, do you have renters insurance? If not, is there a reason you don’t have it?
Average mortgage rates tumbled yesterday following a first-class inflation report. In some cases, they are now back below 7% for an excellent borrower wanting a conventional, 30-year, fixed-rate mortgage. Phew!
First thing, markets were signaling that mortgage rates today might fall but perhaps only a little. However, these early mini-trends often switch speed or direction later in the day.
Current mortgage and refinance rates
Program
Mortgage Rate
APR*
Change
Conventional 30-year fixed
7.122%
7.147%
+0.15
Conventional 15-year fixed
6.297%
6.321%
+0.1
Conventional 20-year fixed
7.34%
7.403%
+0.03
Conventional 10-year fixed
6.872%
6.985%
+0.05
30-year fixed FHA
7.065%
7.685%
+0.02
15-year fixed FHA
6.503%
6.972%
+0.16
30-year fixed VA
6.75%
6.959%
+0.25
15-year fixed VA
6.625%
6.965%
Unchanged
5/1 ARM Conventional
6.75%
7.266%
Unchanged
5/1 ARM FHA
6.75%
7.532%
+0.11
5/1 ARM VA
6.75%
7.532%
+0.11
Rates are provided by our partner network, and may not reflect the market. Your rate might be different. Click here for a personalized rate quote. See our rate assumptions See our rate assumptions here.
Should you lock a mortgage rate today?
The chances of mortgage rates falling far and for long later this year improved yesterday. That day’s inflation report helped a lot.
But I reckon we’ll probably need a heap more similarly rate-friendly data in order to bring about that significant and sustained fall. And, while it’s possible such a heap will be delivered quickly, it’s probably more likely we’ll see any improvements late this year or sometime in 2024.
So, my personal rate lock recommendations remain:
LOCK if closing in 7 days
LOCK if closing in 15 days
LOCK if closing in 30 days
LOCK if closing in 45 days
LOCK if closing in 60days
However, with so much uncertainty at the moment, your instincts could easily turn out to be as good as mine — or better. So let your gut and your own tolerance for risk help guide you.
>Related: 7 Tips to get the best refinance rate
Market data affecting today’s mortgage rates
Here’s a snapshot of the state of play this morning at about 9:50 a.m. (ET). The data, compared with roughly the same time yesterday, were:
The yield on 10-year Treasury notes tumbled to 3.81% from 3.91%. (Very good for mortgage rates.) More than any other market, mortgage rates typically tend to follow these particular Treasury bond yields
Major stock indexes were higher. (Bad for mortgage rates.) When investors buy shares, they’re often selling bonds, which pushes those prices down and increases yields and mortgage rates. The opposite may happen when indexes are lower. But this is an imperfect relationship
Oil prices decreased to $75.65 from $75.94 a barrel. (Neutral for mortgage rates*.) Energy prices play a prominent role in creating inflation and also point to future economic activity
Goldprices rose to $1,964 from $1,959 an ounce. (Neutral for mortgage rates*.) It is generally better for rates when gold prices rise and worse when they fall. Gold tends to rise when investors worry about the economy.
CNN Business Fear & Greed index — held steady at 81 out of 100. (Neutral for mortgage rates.) “Greedy” investors push bond prices down (and interest rates up) as they leave the bond market and move into stocks, while “fearful” investors do the opposite. So lower readings are often better than higher ones
*A movement of less than $20 on gold prices or 40 cents on oil ones is a change of 1% or less. So we only count meaningful differences as good or bad for mortgage rates.
Caveats about markets and rates
Before the pandemic and the Federal Reserve’s interventions in the mortgage market, you could look at the above figures and make a pretty good guess about what would happen to mortgage rates that day. But that’s no longer the case. We still make daily calls. And are usually right. But our record for accuracy won’t achieve its former high levels until things settle down.
So, use markets only as a rough guide. Because they have to be exceptionally strong or weak to rely on them. But, with that caveat, mortgage rates today might fall. However, be aware that “intraday swings” (when rates change speed or direction during the day) are a common feature right now.
Important notes on today’s mortgage rates
Here are some things you need to know:
Typically, mortgage rates go up when the economy’s doing well and down when it’s in trouble. But there are exceptions. Read ‘How mortgage rates are determined and why you should care’
Only “top-tier” borrowers (with stellar credit scores, big down payments, and very healthy finances) get the ultralow mortgage rates you’ll see advertised
Lenders vary. Yours may or may not follow the crowd when it comes to daily rate movements — though they all usually follow the broader trend over time
When daily rate changes are small, some lenders will adjust closing costs and leave their rate cards the same
Refinance rates are typically close to those for purchases.
A lot is going on at the moment. And nobody can claim to know with certainty what will happen to mortgage rates in the coming hours, days, weeks or months.
What’s driving mortgage rates today?
Yesterday
Yesterday’s consumer price index (CPI) was a real tonic for mortgage rates. Comerica Bank’s chief economist said that “the fever is breaking“ for inflation.
And The Wall Street Journal (paywall) suggested: “Inflation cooled last month to its slowest pace in more than two years, giving Americans relief from a painful period of rising prices and boosting the chances that the Federal Reserve will stop raising interest rates after an expected increase this month.“
Note that the Journal’s writers (and many others) still expect a rise in general interest rates on Jul. 26. And that might limit how far mortgage rates can fall in the short term.
But other things could also limit the extent and duration of further decreases in mortgage rates. More and more people are talking up the possibility of a “soft landing.“ That refers to the Fed successfully driving down inflation without throwing the country into a recession.
But those of us wanting lower mortgage rates were kind of hoping for a recession. Of course, we didn’t want the bad stuff for the wider population. But mortgage rates tend to fall when the economy is in trouble and rise when it’s doing well.
So, while some falls in mortgage rates might be on the cards later in the year or in 2024, they might not be as big as we’d once been able to hope.
The rest of this week
This morning’s producer price index (PPI) for June was nothing like as important to mortgage rates as yesterday’s CPI. It and tomorrow’s import price index (IPI) are generally seen as secondary inflation measures. But, with markets hyper-sensitive to inflation news right now, they’re worth observing.
Today’s PPI was probably good for mortgage rates. The headline figure (PPI for final demand) came in at 0.1% in June, compared with the expected 0.2%. Just don’t expect it to have as positive an effect as yesterday’s news.
Please read the weekend edition of this daily report for more background on what’s happening to mortgage rates.
Recent trends
According to Freddie Mac’s archives, the weekly all-time low for mortgage rates was set on Jan. 7, 2021, when it stood at 2.65% for conventional, 30-year, fixed-rate mortgages.
Freddie’s Jul. 6 report put that same weekly average at 6.81%, up from the previous week’s 6.71%. But Freddie is almost always out of date by the time it announces its weekly figures.
In November, Freddie stopped including discount points in its forecasts. It has also delayed until later in the day the time at which it publishes its Thursday reports. Andwe now update this section on Fridays.
Expert forecasts for mortgage rates
Looking further ahead, Fannie Mae and the Mortgage Bankers Association (MBA) each has a team of economists dedicated to monitoring and forecasting what will happen to the economy, the housing sector and mortgage rates.
And here are their rate forecasts for the current quarter (Q2/23) and the following three quarters (Q3/23, Q4/23 and Q1/24).
The numbers in the table below are for 30-year, fixed-rate mortgages. They were both updated in June.
In the past, we included Freddie Mac’s forecasts. But it seems to have given up on publishing those.
Forecaster
Q2/23
Q3/23
Q4/23
Q1/24
Fannie Mae
6.5%
6.6%
6.3%
6.1%
MBA
6.5%
6.2%
5.8%
5.6%
Of course, given so many unknowables, the whole current crop of forecasts might be even more speculative than usual. And their past record for accuracy hasn’t been wildly impressive.
Find your lowest mortgage rate today
You should comparison shop widely, no matter what sort of mortgage you want. Federal regulator the Consumer Financial Protection Bureau found in May 2023:
“Mortgage borrowers are paying around $100 a month more depending on which lender they choose, for the same type of loan and the same consumer characteristics (such as credit score and down payment).”
In other words, over the lifetime of a 30-year loan, homebuyers who don’t bother to get quotes from multiple lenders risk losing an average of $36,000. What could you do with that sort of money?
Mortgage rate methodology
The Mortgage Reports receives rates based on selected criteria from multiple lending partners each day. We arrive at an average rate and APR for each loan type to display in our chart. Because we average an array of rates, it gives you a better idea of what you might find in the marketplace. Furthermore, we average rates for the same loan types. For example, FHA fixed with FHA fixed. The end result is a good snapshot of daily rates and how they change over time.
How your mortgage interest rate is determined
Mortgage and refinance rates vary a lot depending on each borrower’s unique situation.
Factors that determine your mortgage interest rate include:
Overall strength of the economy — A strong economy usually means higher rates, while a weaker one can push current mortgage rates down to promote borrowing
Lender capacity — When a lender is very busy, it will increase rates to deter new business and give its loan officers some breathing room
Property type (condo, single-family, town house, etc.) — A primary residence, meaning a home you plan to live in full time, will have a lower interest rate. Investment properties, second homes, and vacation homes have higher mortgage rates
Loan-to-value ratio (determined by your down payment) — Your loan-to-value ratio (LTV) compares your loan amount to the value of the home. A lower LTV, meaning a bigger down payment, gets you a lower mortgage rate
Debt-To-Income ratio — This number compares your total monthly debts to your pretax income. The more debt you currently have, the less room you’ll have in your budget for a mortgage payment
Loan term — Loans with a shorter term (like a 15-year mortgage) typically have lower rates than a 30-year loan term
Borrower’s credit score — Typically the higher your credit score is, the lower your mortgage rate, and vice versa
Mortgage discount points — Borrowers have the option to buy discount points or ‘mortgage points’ at closing. These let you pay money upfront to lower your interest rate
Remember, every mortgage lender weighs these factors a little differently.
To find the best rate for your situation, you’ll want to get personalized estimates from a few different lenders.
Are refinance rates the same as mortgage rates?
Rates for a home purchase and mortgage refinance are often similar.
However, some lenders will charge more for a refinance under certain circumstances.
Typically when rates fall, homeowners rush to refinance. They see an opportunity to lock in a lower rate and payment for the rest of their loan.
This creates a tidal wave of new work for mortgage lenders.
Unfortunately, some lenders don’t have the capacity or crew to process a large number of refinance loan applications.
In this case, a lender might raise its rates to deter new business and give loan officers time to process loans currently in the pipeline.
Also, cashing out equity can result in a higher rate when refinancing.
Cash-out refinances pose a greater risk for mortgage lenders, so they’re often priced higher than new home purchases and rate-term refinances.
How to get the lowest mortgage or refinance rate
Since rates can vary, always shop around when buying a house or refinancing a mortgage.
Comparison shopping can potentially save thousands, even tens of thousands of dollars over the life of your loan.
Here are a few tips to keep in mind:
1. Get multiple quotes
Many borrowers make the mistake of accepting the first mortgage or refinance offer they receive.
Some simply go with the bank they use for checking and savings since that can seem easiest.
However, your bank might not offer the best mortgage deal for you. And if you’re refinancing, your financial situation may have changed enough that your current lender is no longer your best bet.
So get multiple quotes from at least three different lenders to find the right one for you.
2. Compare Loan Estimates
When shopping for a mortgage or refinance, lenders will provide a Loan Estimate that breaks down important costs associated with the loan.
You’ll want to read these Loan Estimates carefully and compare costs and fees line-by-line, including:
Interest rate
Annual percentage rate (APR)
Monthly mortgage payment
Loan origination fees
Rate lock fees
Closing costs
Remember, the lowest interest rate isn’t always the best deal.
Annual percentage rate (APR) can help you compare the ‘real’ cost of two loans. It estimates your total yearly cost including interest and fees.
Also pay close attention to your closing costs.
Some lenders may bring their rates down by charging more upfront via discount points. These can add thousands to your out-of-pocket costs.
3. Negotiate your mortgage rate
You can also negotiate your mortgage rate to get a better deal.
Let’s say you get loan estimates from two lenders. Lender A offers the better rate, but you prefer your loan terms from Lender B. Talk to Lender B and see if they can beat the former’s pricing.
You might be surprised to find that a lender is willing to give you a lower interest rate in order to keep your business.
And if they’re not, keep shopping — there’s a good chance someone will.
Fixed-rate mortgage vs. adjustable-rate mortgage: Which is right for you?
Mortgage borrowers can choose between a fixed-rate mortgage and an adjustable-rate mortgage (ARM).
Fixed-rate mortgages (FRMs) have interest rates that never change, unless you decide to refinance. This results in predictable monthly payments and stability over the life of your loan.
Adjustable-rate loans have a low interest rate that’s fixed for a set number of years (typically five or seven). After the initial fixed-rate period, the interest rate adjusts every year based on market conditions.
With each rate adjustment, a borrower’s mortgage rate can either increase, decrease, or stay the same. These loans are unpredictable since monthly payments can change each year.
Adjustable-rate mortgages are fitting for borrowers who expect to move before their first rate adjustment, or who can afford a higher future payment.
In most other cases, a fixed-rate mortgage is typically the safer and better choice.
Remember, if rates drop sharply, you are free to refinance and lock in a lower rate and payment later on.
How your credit score affects your mortgage rate
You don’t need a high credit score to qualify for a home purchase or refinance, but your credit score will affect your rate.
This is because credit history determines risk level.
Historically speaking, borrowers with higher credit scores are less likely to default on their mortgages, so they qualify for lower rates.
For the best rate, aim for a credit score of 720 or higher.
Mortgage programs that don’t require a high score include:
Conventional home loans — minimum 620 credit score
FHA loans — minimum 500 credit score (with a 10% down payment) or 580 (with a 3.5% down payment)
VA loans — no minimum credit score, but 620 is common
USDA loans — minimum 640 credit score
Ideally, you want to check your credit report and score at least 6 months before applying for a mortgage. This gives you time to sort out any errors and make sure your score is as high as possible.
If you’re ready to apply now, it’s still worth checking so you have a good idea of what loan programs you might qualify for and how your score will affect your rate.
You can get your credit report from AnnualCreditReport.com and your score from MyFico.com.
How big of a down payment do I need?
Nowadays, mortgage programs don’t require the conventional 20 percent down.
In fact, first-time home buyers put only 6 percent down on average.
Down payment minimums vary depending on the loan program. For example:
Conventional home loans require a down payment between 3% and 5%
FHA loans require 3.5% down
VA and USDA loans allow zero down payment
Jumbo loans typically require at least 5% to 10% down
Keep in mind, a higher down payment reduces your risk as a borrower and helps you negotiate a better mortgage rate.
If you are able to make a 20 percent down payment, you can avoid paying for mortgage insurance.
This is an added cost paid by the borrower, which protects their lender in case of default or foreclosure.
But a big down payment is not required.
For many people, it makes sense to make a smaller down payment in order to buy a house sooner and start building home equity.
Choosing the right type of home loan
No two mortgage loans are alike, so it’s important to know your options and choose the right type of mortgage.
The five main types of mortgages include:
Fixed-rate mortgage (FRM)
Your interest rate remains the same over the life of the loan. This is a good option for borrowers who expect to live in their homes long-term.
The most popular loan option is the 30-year mortgage, but 15- and 20-year terms are also commonly available.
Adjustable-rate mortgage (ARM)
Adjustable-rate loans have a fixed interest rate for the first few years. Then, your mortgage rate resets every year.
Your rate and payment can rise or fall annually depending on how the broader interest rate trends.
ARMs are ideal for borrowers who expect to move prior to their first rate adjustment (usually in 5 or 7 years).
For those who plan to stay in their home long-term, a fixed-rate mortgage is typically recommended.
Jumbo mortgage
A jumbo loan is a mortgage that exceeds the conforming loan limit set by Fannie Mae and Freddie Mac.
In 2023, the conforming loan limit is $726,200 in most areas.
Jumbo loans are perfect for borrowers who need a larger loan to purchase a high-priced property, especially in big cities with high real estate values.
FHA mortgage
A government loan backed by the Federal Housing Administration for low- to moderate-income borrowers. FHA loans feature low credit score and down payment requirements.
VA mortgage
A government loan backed by the Department of Veterans Affairs. To be eligible, you must be active-duty military, a veteran, a Reservist or National Guard service member, or an eligible spouse.
VA loans allow no down payment and have exceptionally low mortgage rates.
USDA mortgage
USDA loans are a government program backed by the U.S. Department of Agriculture. They offer a no-down-payment solution for borrowers who purchase real estate in an eligible rural area. To qualify, your income must be at or below the local median.
Bank statement loan
Borrowers can qualify for a mortgage without tax returns, using their personal or business bank account. This is an option for self-employed or seasonally-employed borrowers.
Portfolio/Non-QM loan
These are mortgages that lenders don’t sell on the secondary mortgage market. This gives lenders the flexibility to set their own guidelines.
Non-QM loans may have lower credit score requirements, or offer low-down-payment options without mortgage insurance.
Choosing the right mortgage lender
The lender or loan program that’s right for one person might not be right for another.
Explore your options and then pick a loan based on your credit score, down payment, and financial goals, as well as local home prices.
Whether you’re getting a mortgage for a home purchase or a refinance, always shop around and compare rates and terms.
Typically, it only takes a few hours to get quotes from multiple lenders — and it could save you thousands in the long run.
Current mortgage rates methodology
We receive current mortgage rates each day from a network of mortgage lenders that offer home purchase and refinance loans. Mortgage rates shown here are based on sample borrower profiles that vary by loan type. See our full loan assumptions here.
If you’re like me, you’ve received lots of mailers from a bank called “Third Federal Savings & Loan,” promising a low rate mortgage with very few fees.
After maybe the 10th piece of mail from them came through my mailbox, I decided it was finally time to write a review. So here we go.
Third Federal Has Been Around Since 1938
Began during Great Depression in Cleveland, Ohio
Initially served immigrants from Poland and other Eastern European countries
Now operates in 25 states and DC, with branches in Florida and Ohio
They are a direct mortgage lender that offers purchase loans, refinances, and home equity products
First off, let’s talk a little history. Third Federal isn’t a newcomer like Better Mortgage or Rocket Mortgage.
They’ve been around since 1938, which if you’re counting, is nearly a century. That gives them some credibility, and if you ask, they’ll tell you that staying power can be attributed to conservative lending.
In other words, avoiding fads and questionable product choices like subprime or Alt-A in exchange for lasting relationships and more stability.
The company was started by Ben S. and Gerome Stefanski in Cleveland, Ohio during the Great Depression, using $50,000 in capital provided by members of the Slavic Village neighborhood.
It began by serving struggling immigrant families from Poland and other Eastern Europe nations who had settled in the area.
Over time, the business grew and thrived, and today they do business in 25 states, and run a branch network in the states of Florida and Ohio.
Where Third Federal Mortgage Operates
As noted, they do business in 25 states and the District of Columbia, but not all products are offered in all states. So pay close attention.
You can get a purchase loan or refinance in the following states: OH, FL, KY, NC, VA, MD, NJ, PA, IN, IL, GA, MO, TN.
And you can get just a refinance in these states: CO, NH, CA, NY, OR, MA, CT, DC, WA.
Additionally, home equity loans are available in: OH, FL, KY, CA, PA, NJ, VA and NC.
Lastly, bridge loans are available in all purchase markets mentioned above if you need to buy before you sell your existing home.
What Home Loan Programs Does Third Federal Offer?
You can view real rates and apply for a mortgage online
Or generate a free, true pre-approval that can even be locked in
They offer lots of interesting conventional loan products like Smart Rate ARMs and jumbo loans
But do not offer government loans or finance second homes or investment properties
While they don’t sound like a disruptor in the mortgage space, they do offer a similar digital experience along with interesting loan products.
If you want to apply for a home loan or equity line of credit, you can start the process online in minutes.
You can generate a pre-approval letter and even lock in your rate before you find a property via their prelock option.
The company specializes in conventional loans, meaning non-government stuff backed by Fannie Mae and Freddie Mac, along with jumbo loans on owner-occupied properties.
You won’t find FHA loans, VA loans, or USDA loans here, or mortgages for second homes and investment properties, but they do everything else, including home equity lines of credit.
They offer both fixed-rate mortgages and adjustable-rate mortgages, including lesser-known options like the 3/1 ARM and 10-year fixed mortgage.
Interestingly, their ARMs are tied to the Prime Rate, as opposed to say the LIBOR or some other index. Once the fixed period ends, they reset to Prime minus 1%.
They have two caps, including a periodic cap of 2%, meaning your rate could increase (or decrease) by up to two percentage points at the first adjustment.
And a lifetime cap of 6%, meaning the most the rate could increase during the life of the loan is six percentage points.
Their ARMs come in three different terms, including a standard 30-year term, 15-year term, and 10-year loan term. That’s pretty unique.
Additionally, they offer a discount on jumbo loans as opposed to charging more for them, which is typically the norm.
If you’re happy with your first mortgage, they also offer home equity lines of credit with no teaser or introductory rate.
They say it’s “always Prime minus 1.01%,” a rate they believe is 20% lower than most other lenders.
It comes with no closing costs and no prepayment penalty, and costs just $65 per year after being free the first year.
They also offer construction-to-perm loans and an end-loan mortgage product.
Third Federal Mortgage Rates
They openly advertise all their mortgage rates online
Rates offered with or without most closing costs (Low Cost option)
Their Smart Rate feature allows you to relock your rate whenever you want
Appear to be competitive with other lenders but always shop around
One thing I like about this bank is its transparency. They let you know about everything. And it’s no different when it comes to their mortgage rates.
They are advertised right on their website for all to see, without the need to apply or create an account.
You can see current rates for the 30-year fixed, 15-year fixed, 10-year fixed, 5/1 ARM, and 3/1 ARM.
Low Cost Mortgage Option – Pay Just $295 in Closing Costs!
Additionally, they show the “Low Cost” version of many of their loan programs, which requires just $295 in closing costs ($595 in NY).
They pay for everything other than pre-paid items like interest, taxes, and insurance, along with transfer taxes if applicable.
You aren’t on the hook for an application fee, underwriting fee, processing fee, appraisal, credit report, title insurance, recording, notary, and so on.
Nor do you need to pay a loan origination fee or mortgage points, unless you wish to pay discount points to obtain a lower-than-market rate.
These “Low Cost” options come with slightly higher interest rates to offset the lack of closing costs, and could be a good choice for someone who doesn’t plan to keep their mortgage long.
Their rates appear to be pretty competitive, and with low fees and no commissions paid to their loan officers, the APRs are similarly low.
One nice benefit is that they don’t charge extra for cash out refinances, so if you want to tap some equity, your interest rate won’t be higher as a result.
As always, compare their rates to other banks, credit unions, mortgage brokers, and so on to ensure you’re getting the best deal for your particular loan scenario.
Third Federal Smart Rate ARMs Feature Rate Relock Feature
Their ARMs feature a free Rate Relock option that allows you to fix your rate at any time
If your 3/1 ARM or 5/1 ARM is about to reset higher, you can relock for just $295
Fixed rate is then extended for three or five years, respectively
You can take advantage of this option as many times as you’d like during the loan term
They also offer a “Rate Relock” feature that allow you to relock your rate at any time if you take out one of their so-called “Smart Rate” adjustable-rate mortgages.
The process is apparently super simple and quick, and does not require an application or appraisal. However, I do believe they check your credit.
You just request the Rate Relock, pay a low $295 fee ($595 in NY), and your new interest rate will be relocked at current rates.
In the month following your request, the new interest rate will go into effect.
That way you don’t have to worry about your ARM exploding higher after the initial fixed period comes to an end.
It could be super beneficial if rates remain low or go down, as you could lower the interest rate on your mortgage without refinancing.
The company says with Rate Relock, “you’ll never have to refinance again!”
While true or not, it’s a neat little feature, just make sure the convenience isn’t built into a higher mortgage rate versus the competition.
Why Use Third Federal to Get a Mortgage?
They offer unique home loan programs you can’t find elsewhere
Purchase loans come with Lowest Rate Guarantee and On-Time Closing Guarantee
Standard rate lock period is 60 days as opposed to just 30
They service all the loans they close instead of selling them off to other companies
Assuming you live in a state where they do business and your property qualifies, Third Federal offers some really interesting loan options like ARMs with various loan terms.
Additionally, their mortgage rates appear to be pretty competitive, especially with the lack of most closing costs on their Low Cost option.
If you have a jumbo loan, your rate could be even lower, and all mortgages come with a standard 60-day rate lock as opposed to just 30 days.
Those purchasing a home with a Third Federal mortgage can take advantage of both their Lowest Rate Guarantee and On-Time Closing Guarantee.
And you can take out a mortgage up to 85% LTV without paying private mortgage insurance.
Also, they service 100% of the loans they originate, as opposed to selling them off to some unknown loan servicer you might not like.
Ultimately, they are probably a good choice for someone interested in taking out an ARM vs. a fixed mortgage.
You get added flexibility on the ARM with the Rate Relock feature, which could be really beneficial if mortgage rates continue to stay flat and/or low.
However, as mentioned, they do have some limitations when it comes to borrowing on all property types, and their fixed mortgages might not be as competitive as other banks.
Mortgage Passport Review
Recently, Third Federal launched a new online lending division known as “Mortgage Passport.”
They refer to the company as the coming together of high tech and human touch. In other words, same great service you’d get from a bank, but with the latest technology.
They pride themselves on their low rates, easy-to-use digital loan application, and their “smart” non-commissioned loan officers.
Mortgage Passport appears to offer refinances in the following states: CA, CO, CT, DC, GA, IL, IN, KY, MA, MD, MO, NC, NH, NJ, NY, OR, PA, TN, VA, and WA.
The Mortgage Passport division seems to be focused on refinances, and specifically cash out refinances that allow you to tap equity.
And they aren’t shy about showing off their mortgage rates, with daily rates prominently displayed on their website.
You can easily compare standard closing cost mortgages, no lender fee mortgages, and no closing cost mortgages side-by-side without having to log in or provide personal information.
From what I saw, their mortgage rates were very competitive, even the no-fee options. Note that no cost loans are not available in NY.
To get started, simply head to their website, click on “Apply Online” and you’ll be off to the races.
From there, a loan officer will reach out to review your application and collect a deposit (likely an appraisal fee) so your loan can be processed and underwritten.
While there aren’t a ton of Mortgage Passport reviews just yet, they do have a 4.9-star rating out of 5 on Bankrate from 8 reviews, with a 100% recommend rating.
And on their own website, a 4.8-rating and 100% recommend rating from five reviews. So it appears the feedback thus far is very positive.
If you’re looking for a digital mortgage process and a low mortgage rate on a refinance (with a variety of different closing cost options), Mortgage Passport could be a good choice
Senators Tina Smith (D-Minn.) and Mike Rounds (R-S.D.) introduced this week new legislation that aims to address a shortage of affordable housing in rural communities. The lawmakers say the bill would represent “the most significant Rural Housing Service reforms [in] years.”
If passed, the bill, known as Rural Housing Service Reform Act of 2023, would “improve federal rural housing programs, cut red tape, and strengthen the supply of affordable housing” and would “improve and build upon a number of U.S. Department of Agriculture (USDA) rural housing programs,” according to a press release from Sen. Smith’s office about the bill.
“This legislation makes important improvements and updates to the Rural Housing Service that will create and preserve affordable housing opportunities in South Dakota,” said Sen. Rounds. “As we face an affordable housing crisis across the nation, I look forward to working with my colleagues to get these important, bipartisan updates signed into law.”
In particular, the bill aims to fix what the senators describe as a “longstanding problem for [515] properties that were financed by the USDA decades ago and now have maturing mortgages, by making it easier for non-profits to acquire those properties and by decoupling rental assistance so that assistance doesn’t disappear when those mortgages mature.”
Otherwise known as “rural renting housing loans,” USDA Section 515 loans are “direct, competitive mortgage loans made to provide affordable multifamily rental housing for very low-, low-, and moderate-income families, elderly persons, and persons with disabilities.”
The bill would make it easier for non-profits to acquire properties with Section 515 loans. It would also decouple the related rental assistance so that the assistance doesn’t disappear when the mortgages mature.
In addition, the bill would make permanent a USDA pilot program that provides mortgages to Native American communities through partnerships with community development financial institutions (CDFIs).
Technology is also a focus of the bill. In addition to the other priorities, the bill would allow the USDA to make better investments in its information technology infrastructure. The senators contend that this would allow the USDA to “process loans more quickly and with less staff time wasted on paperwork or manual data entry.”
Another area of focus are the USDA’s methods of measuring incomes, which are “outdated,” according to language in the bill. If passed, the bill bring those methods in line with the way incomes are measured by HUD.
The bill would also “modernize” the USDA’s foreclosure practices to better ensure affordability, the senators said.
Smith and Rounds have been heavily focused on affordable rural housing issues recently, with both senators spearheading hearings on the topic in order to develop a plan.
“Without a safe, affordable place to live, nothing else in your life works. Not your job, not your education, not your health,” Sen. Smith said in a statement. “We know that the housing crisis is hurting communities across the country, and the problem is particularly acute in rural places. This legislation is the direct result of bipartisan hearings and conversations with stakeholders who helped identify ways we can make federal rural housing programs work better for people struggling to find a safe, affordable place to live.”
Natalie Maxwell, managing attorney for the National Housing Law Project, recently told The Hill that approximately 560,000 renters who live in apartments financed by Section 515 are under threat due to the mortgages maturing or due to a loss of eligibility related to other reasons.
“In rural communities, the Section 515 program has been a critical source of affordable housing especially for low-income seniors and people with disabilities,” Maxwell told The Hill. “Congress can and must do more to preserve these properties for families living in poverty.”
The U.S. Department of Housing and Urban Development has also turned its attention toward the needs of rural areas recently, including through proposals that seek to expand broadband internet access to a greater number of rural communities.
It’s time for another mortgage review, this time we’ll take a hard look at “New American Funding” to see if they should be included in your home loan search.
They call themselves a family-owned business dedicated to helping other families improve their quality of life.
That sounds like they have your best intentions in mind, especially when navigating what is arguably one of the biggest life decisions, buying a home.
New American also refers to themselves as the “largest Hispanic-owned mortgage company in the United States.”
And their mission is to increase lending to underserved communities, including Black and Latino borrowers. Let’s find out more about them.
New American Funding Fast Facts
Retail direct-to-consumer mortgage company with 180 branches nationwide
Launched in 2003, headquartered in Tustin, California (Orange County)
Started by husband and wife team Rick and Patty Arvielo
Originally a 40-employee call center, workforce now close to 5,000
Offers home purchase financing and refinance loans
Licensed to do business in all states except Hawaii
Funded $31.5 billion in home loans during 2021 (nearly a top-25 lender nationally)
Services more than 200,000 loans worth approximately $54 billion
Ranked #1 loan servicer by J.D. Power in the 2022 study
New American Funding got started back in 2003, which was around the time the housing market was booming.
Just a few short years later, the subprime mortgage crisis hit, and hundreds of lenders didn’t survive.
So I suppose that’s a testament to the resolve of New American Funding, which is a DBA of parent company Broker Solutions, Inc.
Despite being a young company at the time, they were able to get through the Great Recession and become a mortgage powerhouse just a decade later.
As noted, they are a family company, with husband and wife team Rick and Patty Arvielo the founders. Rick is currently CEO, while Patty is the president.
The direct lender is based out of Tustin, California, which is in the heart of Orange County, home to scores of mortgage lenders and related real estate companies.
The pair grew New American Funding from a 40-employee call center into one of the largest mortgage lenders in the country in less than 20 years.
Today, they count 4,700 individuals as employees, have nearly 200 branches nationwide, and maintain a loan servicing portfolio consisting of over 200,000 loans worth about $54 billion.
Last year, the company funded more than $30 billion in home loans, which puts them very close to the top-25 mortgage lenders nationally.
Roughly two-thirds of their business consisted of refinance loans, with the remainder home purchase loans.
Note: They do not lend in the state of Hawaii at this time.
New American Is the #1 Hispanic Mortgage Lender
As noted, New American is on a mission to increase homeownership for underserved communities, especially Black and Latino borrowers.
Last year, 36% of their home purchase loans went to minority borrowers, compared to just 25.5% for all lending institutions, based on 2020 HMDA data.
They are also the #1 lender to Hispanic borrowers, with a larger percentage of their loans going to Hispanic borrowers versus any other lender in the top-25.
Additionally, their share of purchase lending to Black borrowers was 85% higher than the industry average, a result of their “New American Dream” initiative launched in 2016.
They are also committed to lending $25 billion in new mortgages to Hispanic borrowers by the year 2024, and $20 billion to Black borrowers over the next seven years.
When it comes to diversity at the company itself, 23% of the company’s workforce is Hispanic, 45% of the company’s employees are minorities, and 60% are women.
What Loan Types Does New American Funding Offer?
Home purchase financing
Home renovation loans
Refinance loans: rate and term refi, cash out refi, and streamline refis
Conventional loans: Conforming and jumbo
Government loans: FHA, VA, and USDA loans
ARMs: 5/1, 7/1, 10/1 varieties
Fixed mortgages: 30-year and 15-year options
Choose your own term mortgages
Renovation loans and Energy Efficient loans
Non-QM loans (self-employed borrowers)
Interest-only mortgages
HELOCs
Buydown Loans (such as a 3-2-1- buydown)
One great thing about New American Funding is that you can get pretty much any type of home loan under the sun.
This includes home purchase loans, home renovation loans, rate and term refinances, cash out refinances, and streamline refinances.
They are a Fannie Mae, Freddie Mac, and Ginnie Mae direct lender, seller, and servicer, so they’ve got all the conforming and government loan options you can think of.
That includes the usual suspects like conforming mortgages, FHA loans, USDA loans, and VA loans. But that’s not all.
They also offer interest-only mortgages, jumbo loans, non-QM loans, reverse mortgages, and some proprietary offerings like the “I CAN Mortgage.”
So what is an I CAN Mortgage you ask? Well, it’s simply a choose your own term mortgage, that allows for custom terms ranging from 8 to 30 Years.
For example, if you’re 7 years into a 30-year fixed and want to refinance your mortgage to take advantage of today’s low mortgage rates, you could go with a 23-year term instead of restarting the clock.
This also works for new purchases, so you can just start with a 24-year fixed instead of the standard 30-year fixed to save some dough and own more of your home sooner.
Their so-called Self Employed Mortgage, which may be considered non-QM, allows for the use of bank statements, asset depletion, or just one-year of tax returns to qualify.
They also offer HELOCs, including fixed-rate, adjustable, and hybrid options for those looking to tap equity, along with renovation loans such as the FHA 203k refinance loan and Fannie Mae Homestyle.
New American also operates both a builder and real estate lending division, so they may be a good fit for someone buying a brand-new home or building a home (new construction).
Lastly, they offer Energy Efficient Loans for those looking to finance a home that is already energy-efficient or to make an existing property simply greener.
Pathway to Homeownership Initiative
In February 2023, NAF launched its “Pathway to Homeownership” initiative to help customers purchase their first home in designated areas throughout the country.
It provides up to $8,000 in assistance that can be used for down payment or other closing costs. And best of all it doesn’t need to be paid back.
There are no income limitations, and it can be combined with other down payment assistance programs.
To qualify for Pathway, you must be a first-time home buyer with a minimum credit score of 620. And the property must be a one-unit, single-family home.
Down payments as low as 3% are acceptable. Be sure to inquire with your NAF loan officer to determine if you’re eligible.
NAF also recently partnered with Uqual, “a full-service loan readiness company,” to help prospective home buyers make the leap from renting.
It seeks to turn a loan denial into an approval by improving an applicant’s credit, lowering their debt, and increasing their savings.
Those who complete the loan readiness program and use NAF for their mortgage needs are eligible for a $500 lender credit.
Exclusive Mortgage Provider for Patch
In late February 2023, New American Funding announced that it became the exclusive mortgage provider for “hyper-local news” website Patch.
The partnership will result in NAF placements on the mortgage and real estate hub on each of Patch’s community websites.
And the lender will feature in Patch’s weekly newsletters in over 1,200 communities nationwide.
The link up makes sense because NAF is licensed in all 50 states and has loan officers located throughout the country.
Applying for a Mortgage with New American Funding
They have a short form you can fill out on their website to get started
Then a loan officer will call you to go over your loan scenario and options
You can also call them directly or use their branch/loan officer directory to find someone specific in your area
Loan process appears to be somewhat digital, allowing for document uploading and loan tracking online
New American Funding a direct-to-consumer retail mortgage lender, meaning you work directly with the company to close your loan.
At one time, they ran a wholesale division, but chose to close it in 2016 to focus on their growing retail operations.
They say you can get pre-approved for a mortgage in as little as 24-48 hours, which is a bit slower than some fully digital lenders that can do the same in minutes, such as Rocket Mortgage or Better Mortgage.
But they do offer the ability to apply online or over the phone. If you get started via the website, you basically fill out what amounts to be a lead form. Then someone will contact you by phone.
You can also look up specific loan officers via the branch directory on their website if you want to ensure you get someone local and highly recommended.
Once your loan is submitted, they offer a digital process that includes uploading necessary loan documentation, along with the ability to track your loan progress online via the borrower portal.
You also get a dedicated loan officer that will help you along the way, which differs from some of the startups that only provide assistance as needed.
New American Funding’s Mortgage Rates
I’m all about transparency, and fortunately New American is too when it comes to their mortgage rates.
They openly advertise them right on their website for all to see. You can check rates daily for the 30-year fixed, 15-year fixed, FHA 30-year fixed, and VA 30-year fixed.
It should be noted that their rate assumptions are very tough, calling for a 740+ FICO score, 60% LTV, primary residence, with up to one discount point on their standard 30-year fixed mortgage.
In other words, if you have a lower credit score, less equity in your home, need cash out, or don’t occupy the property, the interest rate could be substantially higher.
The good news is their advertised rates appear to be quite low, so if you are a good borrower, they might be quite competitive.
As always, take the time to check out the rates of other lenders to ensure you do your due diligence.
In terms of lender fees, it’s unclear if they charge a loan origination fee or separate fees for underwriting and processing. Be sure to inquire when speaking with your loan officer.
New American Funding 14 Business Day Close Guarantee
If you happen to be buying a home, the company has a “14 Business Day Close Guarantee” to ensure you get to the finish line quickly, especially in a competitive market.
They say they have industry leading turn times because they’re an “all-inclusive mortgage banker.”
Their operations staff, including loan underwriters, doc drawers and funders, work under one roof, enabling them to close loans fast.
They offer 24-hour credit approval by senior underwriters and 24-hour underwriting turn times on conditions.
The 14-day window begins when your initial application package is complete and you have authorized credit card payment for your home appraisal.
If they fail to perform as agreed, a credit of $250 will be applied toward closing costs. While it’s not much money, the fact that they can close purchase loans in just two weeks is pretty attractive.
New American Funding and EasyKnock
In late January 2023, New American Funding and EasyKnock announced partnership “to offer innovative solutions to underserved communities.”
It’s unclear exactly what those solutions are, but my assumption is that the lender will offer home loan programs to EasyKnock customers.
These will allow borrowers ” to access their home equity through credible and non-traditional means,” which in turn helps keep them in their local communities and schools.
This tells me it might be a home equity product, such as a HELOC.
EasyKnock allows homeowners to sell to EasyKnock but remain in the properties as renters.
New American Funding Reviews
New American has a 4.87-star rating out of 5 on Experience.com from around 180,000 reviews.
Yes, nearly 200,000 customer reviews and a near-perfect rating. That’s truly impressive.
They also have a 4.91-star rating out of a possible 5 on Zillow from 8,500+ customer reviews.
Many of their reviews on Zillow indicate a lower interest rate and/or lower closing costs than expected.
Similarly, they have a 4.9/5 rating on LendingTree from nearly 60,000 reviews, with 99% of customers saying they’d recommend them to others.
Lastly, the company boasts an A+ Better Business Bureau rating and has been accredited since 2004.
So they appear to be very well-liked, though experiences can always vary based on individual circumstances, especially at a large company.
Tip: You can view the ratings of specific loan officers near you if you go the branches tab on their website, select a location, then scroll down to “Meet the Team.”
This allows you to see the staff who work in a particular office, along with their individual ratings as loan officers.
If you like what you see, you can apply for a home loan directly with that individual, or simply get in touch if you have questions.
Pros and Cons of New American Funding
The Good:
Offer virtually every home loan type imaginable including reverse mortgages and HELOCs
Can select your loan officer from an online directory and/or visit a physical branch
Direct lender, seller, and loan servicer with quick turn times and fast closings
Appear to offer competitive mortgage rates
Excellent customer reviews across all ratings websites
A+ BBB rating, accredited company since 2004
14 Business Day Close Guarantee for home purchase loans
Can manage your funded loan with the New American Funding My Mortgage App
They service their own loans instead of transferring them
Free mortgage calculators, mortgage glossary, and market update on their website
Potential Bad:
You must speak to a loan officer before you can apply
Not available in Hawaii
New American Funding vs. AmeriSave
AmeriSave
New American Funding
Digital application
Yes
Yes
Branch locations
No
Yes
Loan types offered
Conventional, FHA, USDA, VA, jumbo
Conventional, FHA, USDA, VA, jumbo, reverse, HELOC
This is a guest post from April Dykman, an avid GRS reader, and a writer and editor by trade. April is a potential Staff Writer for Get Rich Slowly. In her first article, April described how she discovered freedom from mindless spending. April is an active commenter at this site.
When my husband and I went to Italy in 2006, we spent $2500 on plane tickets. We’re planning to spend much less for our next hop across the pond because as of this month we have over 80,000 airline miles — just enough for two tickets to Europe.
I used to think frequent flier miles were only awarded to, you know, frequent fliers. Or people who use an American Express for big company expenses. I certainly didn’t think little ol’ me who gets on a plane maybe once a year would be able to rack up enough miles to matter.
Then I stumbled upon Free Frequent Flyer Miles, a guide written by Gary Steiger, air-mileage earner extraordinaire. I couldn’t believe there were so many ways to earn miles. Soon after, I learned about sites that offer quarterly cash rebates. From these two discoveries, my online buying process developed.
Rewards card We started by applying for an air rewards card and received 30,000 miles for opening the account. My husband and I put every possible expense on this card — even our electric bill. The card earns one mile per dollar spent.
Warning: Super important disclaimer ahead.If you do not pay the balance every month, rewards cards are not for you. There are lower interest credit cards and the interest charges on a rewards card will kill any travel benefits. Our card has a higher rate than our non-reward cards, but we never pay one cent of interest. We also pay a $50 annual fee, which doesn’t bother me considering the savings we’ll get on plane tickets. In short, read the fine print.
Airline shopping malls and rebate sites I would never buy something merely to earn rewards. But we all buy stuff at some point, and there are benefits to be gained by shopping online. Let’s say I need to stock up on some household items like detergent and dish soap. This is the process I use:
Google the items. Note the names of the merchants offering the three best prices (include shipping charges).
Check the airline malls and rebate sites. I use AAdvantage eShopping and Ebates. In my example, drugstore.com participates in both programs and offers free shipping for orders over $49. Let’s say my merchandise total comes to $55.
Search for coupons. Typically I Google the merchant name and “coupon” or “code.” I found a $10 coupon code for drugstore.com.
Log into Ebates or rebate site of your choice. Click on the merchant name, and a new window will open. (Ebates offers 6 percent back on drugstore.com purchases.)
Log into AAdvantage eShopping or airline shopping portal of your choice. Click on the merchant name, and a new window will open. (AAdvantage offers three miles for every dollar spent at drugstore.com.)
Using the last window to open, select your items. I always log into AA last and purchase from the AA window to ensure I’ll receive my miles. Sometimes the registration tracking to AA can be overwritten if you click to another affiliate, though I’ve always received both the rebate and the miles.
Go to the checkout screen, and enter your coupon code.
Complete purchase with a rewards card.
Follow up to ensure you receive your rewards. It can take up to 60 days for air miles to be credited.
This process takes me maybe 10 minutes. Using my example, I’ve paid about $45 for $55 of merchandise. I will get $2.70 in cash rebates and 180 air miles (135 miles from the airline shopping portal and 45 miles for paying with my rewards card). No purchase is too small — the rewards will add up quickly.
More tips
Sign up for mailing lists for sites you frequent. Often subscribers are privy to special discounts.
Try out a site like wishlisting.com, which allows you to bookmark items and alerts you when they go on sale.
Stock up on products you know you’ll use if a bigger order means free shipping. I buy three bottles of dishwashing liquid per order, or more if it’s on sale.
Spend time perusing lists of participating vendors — you might be surprised. When we installed new floors, we bought materials from a store in town, only to discover that we could have bought our supplies online from the same merchant and earned 2,000 miles. (Yes, just to torture myself, I did the math.)
Look for rewards on subscription services. A new Netflix account awarded us 1,500 miles.
If you buy gift cards, see if the merchant participates in rewards programs. (Be sure to check the merchant exclusions. Some give credit for gift cards purchased, others for gift card money redeemed.)
Watch prices on items you buy. If you can find something cheaper in a store, weigh the savings versus the rewards.
Diversify The next thing we need to do is to diversify. Right now we only have miles with one airline. Since the company can change its rewards program at any time, we’d be much better off if we stockpiled miles from several airlines. According to Gary Steiger’s site, he has nine airline accounts!
I encourage anyone who shops online to make the most of every dollar. Memberships to most reward programs are free. For very little effort, I’ve received $160 in cash and earned enough miles for roundtrip tickets to Europe. Even with the fees and taxes, we’ll pay much less for plane tickets than we would without the miles.
What about you? Do you participate in rewards or rebates programs? Which are your favorites?
Some, but not all, SBA loans require a down payment or an investment of money from the borrower at the start of the loan term — typically figured as a percentage of the total loan amount. A down payment can be an indication to the SBA and the lender that you are willing to invest your own money in your business and intend to repay your loan according to the terms of the agreement.
SBA loan down payment requirements
SBA loan program
Maximum loan amount
Down payment
Standard 7(a) loans
$5 million.
10% minimum.
CDC/504 loans
$5.5 million.
10% to 20%.
Microloans
$5 million.
Export loans
$500,000 or $5 million, depending on the specific loan program.
SBA disaster loans
$2 million.
*Down payment requirements and other loan terms can vary by lender.
SBA 7(a) loan down payment
SBA 7(a) loans can be used for working capital, to refinance debt, to start a business or to buy another business, real estate or equipment. Some subcategories of SBA 7(a) loans can have borrower investment, or down payment, requirements:
SBA standard 7(a): This loan type can require at least a 10% down payment when the loan is used to buy a business. In other situations, the requirement for a down payment can be left up to the lender. Standard SBA 7(a) loans offer amounts up to $5 million.
SBA Express loans: The decision on whether to require a down payment on an SBA Express loan is left to the lender. However, if the lender requires a down payment on non-SBA commercial loans, it must also require it for SBA loans. This type of SBA 7(a) loan typically has a faster loan approval time, but it’s capped at a $350,000 maximum loan amount.
There are a few specialized 7(a) loan programs that will be covered below that typically don’t have down payment requirements.
SBA CDC/504 loan down payment
SBA CDC/504 loans typically require a down payment of at least 10% from the borrower. The SBA partners with Certified Development Companies to offer these loans, which are specifically for the purchase, renovation or building of commercial real estate or purchase of heavy equipment. Loan amounts can reach up to $5.5 million.
This loan combines two types of lenders and a down payment to fully fund the loan.
Up to 50% of the loan will come from a traditional bank, credit union or other lender.
Another 40% will come from the CDC or Certified Development Company.
The final 10% of the loan is typically funded through an owner down payment.
To be eligible for an SBA 504 loan, a business needs to operate as a for-profit business in the U.S. or its territories, have a tangible net worth of less than $15 million and an average net income of less than $5 million after taxes for the past two years.
SBA loans with no down payment requirement
There are some loan programs available through the SBA, including some specialized 7(a) loans, where you may be able to avoid a down payment requirement. This is typically because the amount of money being provided is relatively small or because the loan programs are designed for very specific purposes.
SBA microloan
For businesses looking for a small amount of funding, an SBA microloan may be a good choice. SBA microloans are offered up to $50,000 and are available to for-profit businesses and certain nonprofit child care centers.
SBA microloans are available to rebuild, repair or expand your small business and the funds can be used for things such as working capital, inventory, supplies, furniture, equipment and machinery. However, the loan proceeds can’t be used to purchase real estate or pay off existing debt.
Generally, you must have some type of collateral to be eligible for an SBA microloan, but each lender will have its own lending and credit requirements. You can apply for an SBA microloan at specific nonprofit community-based organizations that the SBA has designated as intermediary lenders for the program.
SBA CAPLines program
The SBA CAPLines program, a subcategory of 7(a) loans, offers lines of credit to small businesses to meet their cyclical or short-term working capital needs. These SBA lines of credit can be as high as $5 million.
To be eligible for SBA CAPLines, your business must meet the standard SBA Loan 7(a) requirements. There may be some additional requirements depending on the specific CAPLines product that you’re applying for.
SBA export loans
SBA export loans, another type of 7(a) loan, are designed to help small businesses expand their exports, engage in international transactions and enter new foreign markets.
To be eligible for an SBA export loan, your business must be involved in exporting goods or services to foreign countries or need to modernize your operation to compete with foreign companies.
SBA disaster loans
An SBA disaster loan can be used by a business to recover from a declared disaster or the loss of a crucial employee. There are three types of SBA disaster loans, none of which require a down payment.
When is a down payment required for an SBA loan?
Down payment requirements can depend on the loan program and the use of funds. For example, the SBA sets a minimum down payment of 10% for a standard 7(a) loan when it’s used to buy a business. However, this isn’t always the case. In the Express loan program, the SBA lets the lender determine if a borrower needs to make a down payment — as long as the requirement would be consistent with the lender’s processing of non-SBA loans, too.
In general, the SBA likes to see borrowers invest their own money when they are starting or buying a business or when they’re buying real estate, equipment or some other asset. On the other hand, a down payment is less likely needed for lines of credit that will be used for working capital or for disaster loans which are designed to help a business recover.
Why do SBA loans require down payments?
The SBA and its partner lenders both know that when small-business owners invest their own money and time into a business venture, they are more likely to follow through with the full repayment of the loan.
Also, because of the partial guarantee arrangement, both the SBA and the intermediary lender have something significant to lose if a borrower fails to repay. Before taking this risk, both the SBA and its intermediaries want to know that a borrower has something to lose as well.
Frequently asked questions
How do you get a down payment for an SBA loan?
Some options to consider for a down payment include personal savings, a personal loan, investor or business partners, 401(k) retirement plan, Rollover for Business Startups (ROBS), sale of business assets, mortgage refinance or another type of loan.
Can you get an SBA loan with no money down?
SBA microloans, CAPLines, export loans and disaster loans don’t require down payments.
Is it hard to get approved for an SBA loan?
Generally, it can be easier to get approved for an SBA loan than a conventional bank loan, but SBA loans can still be hard to qualify for. Online business loans and microlenders are another option to consider, but they often have higher interest rates and shorter loan terms than SBA loans.
A version of this article originally appeared on Fundera, a subsidiary of NerdWallet.
When employees feel financially secure, they can be more engaged, focused, productive, and loyal workers.
But simply offering a variety of financial benefits may not be enough to let all members of your workforce actually achieve financial wellness. And that’s especially true today, as employees navigate higher prices, elevated interest rates, and uneven wage growth.
So what are you doing right? And what can you improve?
Measuring financial well-being can help you answer those important questions.
Why Measure Financial Wellness and Why Now?
“A person’s financial well-being comes from their sense of financial security and freedom of choice – both in the present and when considering the future,” according to the Consumer Financial Protection Bureau .
In SoFi at Work’s Future of Workplace Financial Well-Being 2022 study, four out of 10 workers rated their financial well-being as average, poor, or very poor, and 75% currently have at least one source of financial stress. This was the case across all ages and incomes, and from varying industries. In fact, even higher earners were not immune. More than half (57%) of those making more than $150,000 cited at least one source of major financial stress, including worrying about inadequate retirement savings (40%), credit card debt (33%), and not having enough money for basics like food and rent or mortgage payments (29%).
How are your employees faring? Now may be a good time to measure the financial well-being in your workforce. Doing so can let you see firsthand the financial struggles your employees may be going through, how those struggles connect to business outcomes, and how your total rewards strategy can help.
How to Better Understand Your Unique Workforce
Measuring financial well-being will allow you to determine what segments of your workforce are struggling the most. It can also help you figure out what you can provide to help all your employees move forward. For many employers, that’s a two-part process.
1. Wage Assessment
Many employers start this process by assessing wages. No doubt you’ve compared your wage and salary decisions against competitors’ offerings, the local labor market, and industry averages. Indeed, you may be paying above the industry standard. But it’s important to remember that even above-standard wages don’t ensure financial wellness. Your workers may still be struggling.
With that in mind, you may want to compare your company’s wages against what constitutes a local living wage in the areas where your employees work. MIT’s Living Wage Calculator may be able to assist you with this. This tool helps determine how much money a person in a specific area needs to earn to cover basic expenses and how much that person has leftover for disposable income, including saving for the future. This may be a more realistic gauge for all levels of your workforce when assessing wages and determining financial well-being.
Recommended: Are Inflation and Financial Stress Affecting Your Employees’ Work Productivity?
2. Self-Assessment Survey
The next step is to gather input from your employees. If you haven’t already, you’ll want to design an online financial wellness assessment survey and encourage all employees to participate.
An effective self-assessment survey analyzes four pillars of financial security.
Spending: With these questions, you’ll find out how many employees are spending beyond their incomes either because they have expenses that are higher than their income or because of bad spending habits. By asking how long employees think their money would last if they suddenly lost their income, you’ll also collect data on how many of your employees are prepared for an emergency.
Saving: Retirement savings will likely dominate this section. How many employees are participating in your organization’s 401(k) or other retirement savings programs? How much of their annual income are they saving? Are they taking advantage of any match? Do they have an idea of how much they’ll need to save for retirement?
You’ll also want to find out how much your employees are saving for other goals such as emergency savings funds, college tuition, or a home down payment. This may be especially important if your benefits package includes other types of savings programs in addition to retirement.
Debt/Borrowing: Here’s where you want employees to fess up to credit card debt, mortgages, student debt (their own or their children’s), and personal loans. Assessing debt is a vital element for financial wellness. Some leverage, such as a mortgage or tuition loans, can be useful financial wellness tools. But credit card and other debt can be among the biggest obstacles to financial well-being.
Planning: Questions concerning employees’ purchase of life insurance and disability income insurance can paint a picture of how well-protected they are — an important element of financial wellness. This is a good place to ask if employees have set financial goals for the future and if they’ve worked with a financial counselor to do so. You’ll get a sense of what percentage of your employees are looking forward while still taking care of short-term needs/desires. Importantly, this will also let you know how much of your workforce is engaging with the financial planning tools you may be offering.
Depending on your workforce and your goals for the assessment, you may also want to include more subjective elements in your research, such as employee diaries or interviews. This can add human stories to the data collected and help inform new benefits going forward.
Sofi at Work offers a comprehensive benefits assessment tool that can be customized to your workforce.
Measuring Financial Wellness Empowers Employees
When employees take a smart, well-written, and well-designed assessment survey, they’re not just providing information to their bosses, they’re also thinking through their own financial wellness strategy.
Incorporating an interactive tool that gives immediate feedback can help employees identify their current status and balance their short- and long-term financial goals.
Providing a one-on-one meeting with a financial planner or other expert for each employee to have after completing the survey encourages your workers to take action with their newfound knowledge and further enhance their overall financial wellness. (It can also prompt more willingness to take the assessment among employees.)
Recommended: Supporting the Financial Well-Being of Newly Hired Recent Graduates
Measuring Provides a Compass for Your Financial Wellness Benefits
You’ll also want to analyze your own data on the benefits you’re currently providing to determine how well they’re contributing to employee financial wellness. A comprehensive look at who is using what benefits — including everything from health insurance to 401(k)s to paid parental leave and student loan assistance — and what employees are paying for or contributing to those benefits, can unlock details about access and participation among all levels of your workforce.
A benefit analysis combined with a wage assessment and employee financial wellness survey helps provide a deeper understanding of gaps in your total benefits strategy, areas where employee engagement and education are needed, and what new tools and programs might enhance financial well-being among your workers.
The Takeaway
Measuring your employees’ financial well-being now can lead to the design and implementation of benefits that will enhance financial wellness for all of your employees in the future.
SoFi at Work can help provide the wellness measuring tools you need to achieve that goal.
Photo credit: iStock/SDI Productions
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